On the evening of December 30, Chengxin Lithium Group Co.,Ltd. (002240.SZ) announced that it plans to acquire a 30% equity stake in Sichuan Qicheng Mining Co., Ltd. ("Qicheng Mining") for 2.08 billion yuan in cash through its wholly-owned subsidiary, Sichuan Shengtun Lithium Industry Co., Ltd. ("Shengtun Lithium").
Qicheng Mining is a controlled subsidiary of Shengtun Lithium, which holds 70% of its shares, with Taichen Mining holding the remaining 30%. Upon completion of the transaction, the company will achieve 100% full ownership of Qicheng Mining. Financial data shows that for the full year 2024 and the first eight months of 2025, Qicheng Mining reported zero revenue. For the period January to August 2025, it recorded a net loss of 155 million yuan. As of August 31, 2025, Qicheng Mining had total assets of 2.302 billion yuan, total liabilities of 184 million yuan, and a net asset value of 2.118 billion yuan.
Notably, according to an appraisal report, the book value of Qicheng Mining's net assets was 1.419 billion yuan, but the appraisal value increased by 5.515 billion yuan, representing a substantial appreciation rate of 388.77%. The announcement stated that the significant increase in the appraisal value of the company's total equity compared to its book value is primarily due to the substantial appraisal增值 of the core asset—the mining right for the Murong Lithium Mine. Qicheng Mining holds a 70.97% stake in Huirong Mining. The Murong Lithium Mine, owned by Huirong Mining, has identified Li2O resources of 989,600 tonnes with an average grade of 1.62%, making it one of the highest-grade lithium mines in the Sichuan region. With a planned production scale of 3 million tonnes per year, the mine is currently actively advancing its development and construction. Previously, on September 22, 2025, Chengxin Lithium announced that it had acquired a 21% stake in Qicheng Mining for 1.456 billion yuan in cash through Shengtun Lithium. That transaction gave Chengxin Lithium a high degree of control over the Murong Lithium Mine project. Chengxin Lithium holds a 70.97% stake in Huirong Mining through Qicheng Mining, while its wholly-owned subsidiary Shengtun Lithium holds 15.10%, and an affiliated party, Xiamen Chuangyi, holds 13.93%.
With this second acquisition, Chengxin Lithium's focus is on the Murong Lithium Mine held by Qicheng Mining, which possesses the mining right for the Murong mine through its controlled subsidiary, Huirong Mining. "This mine has excellent resource endowment," stated a representative from Chengxin Lithium's securities department, adding that the company aims to secure high-quality resources while lithium prices are at a relatively low level. Chengxin Lithium stated that achieving 100% control of Qicheng Mining will allow the company to "fully leverage its experience in developing lithium mining projects in high-altitude areas of Sichuan, actively advance the development and construction of the Murong Lithium Mine, significantly enhance the self-sufficiency rate of its lithium resources as soon as possible, and establish a stable and reliable resource supply system." The company also cautioned that the consideration for this transaction will be paid using its own or self-raised funds. While the transaction will cause a net outflow of cash flow, it is not expected to have a material adverse effect on the company's normal production, operations, financial stability, or liquidity. Furthermore, mineral resource extraction is an industry characterized by long construction cycles and substantial capital investment, particularly requiring significant funding in the early engineering stages, thus posing risks such as potential funding shortages for mine construction or investment costs exceeding expectations. As one of China's core lithium salt producers, Chengxin Lithium's main business encompasses lithium mining and beneficiation, and the production and sales of basic lithium salts and metallic lithium. Ownership structure analysis shows that Chengxin Lithium's parent company is Shenzhen Shengtun Group Co., Ltd., and its ultimate controller is Yao Xiongjie, a prominent figure in Fujian's mining industry. In terms of performance, Chengxin Lithium saw a significant recovery in the third quarter of last year, achieving revenue of 1.481 billion yuan, a year-on-year increase of 61.07%, and a net profit of 88.7191 million yuan, turning a profit compared to a loss in the same period last year. The company also stated, "The lithium salt plant we invested in and built in Indonesia began external sales in the third quarter of this year. It is expected to quickly generate revenue and profit, contributing positively to cash flow, which will further secure the funding required for this acquisition." At yesterday's market close, the company's shares were quoted at 34.43 yuan per share, up 3.08%, with a total market capitalization of 31.51 billion yuan.
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