The "Jiangsu stock god" behind Contemporary Amperex Technology Co., Ltd. (CATL) has made another strategic move.
In a bid to secure upstream lithium resources during the industry's downturn in late 2024, Canmax Technologies Co., Ltd. (SHE: 300390) acquired the mining rights for the Jinfengfeng (Jinzi Peak) mine in Jiangxi province. Now, a year and a half later, a pivotal development has emerged.
Strategic Partnership for Lithium Mining
Canmax Technologies recently announced it will contribute the Jinfengfeng mine as a capital injection, valued at approximately 2.692 billion yuan, into Huagiao Mining Co., Ltd., a subsidiary controlled by Yongxing Special Materials Technology Co.,Ltd. (SHE: 002756). This move aims to jointly develop the Jinfengfeng mine with the adjacent Huashan mine. The combined operation is projected to form a super-sized lithium mine with a target annual output of 18 million tons.
The Crucial Condition for the Deal
However, the success of this partnership hinges on a critical administrative step. Both mines are currently registered with authorities as "ceramic clay" or "porcelain stone" mines. The agreement stipulates that the cooperation is conditional upon both mining rights being officially reclassified as "lithium" mines. This process involves reassessing reserves and re-evaluating environmental and safety impact assessments, which can be a lengthy and uncertain procedure.
The Mastermind Behind the Strategy
The ultimate controller of Canmax Technologies is Pei Zhenhua, often referred to as the "stock god" behind CATL. His legendary investment journey began in 2015 when he acquired a 15% stake in the then-pre-IPO CATL for 89 million yuan. That stake has since multiplied in value over a thousandfold. In 2025, CATL invested 2.635 billion yuan to acquire a 12.95% stake in Canmax from Pei and his wife, becoming its second-largest shareholder. From his early bet on CATL to acquiring the Jinfengfeng mine and now partnering with Yongxing Materials, Pei's moves have consistently aligned with industry cycles.
Rationale for the Joint Venture
Why merge the mines? Regulations mandate a minimum 300-meter safety distance between adjacent open-pit mines. If developed separately, significant "no-mining zones" would be required on the sides facing each other, leading to substantial resource waste. A joint venture allows for unified planning of mining operations, shared infrastructure like tailings ponds and processing stations, and more efficient overall resource extraction and management.
Structure of the Joint Venture
Under the agreement, Canmax's subsidiary contributes the Jinfengfeng mine, valued at 2.692 billion yuan, to Huagiao Mining. Post-injection, the registered capital of Huagiao Mining increases to 400 million yuan, with each party holding a 50% stake. The mines will be operated jointly, but the extracted ore will be sold separately based on its origin—ore from the original Jinfengfeng area to Canmax or its designated parties, and ore from the Huashan area to Yongxing's subsidiary. Governance is designed with checks and balances: a six-member board with equal representation, a rotating chairmanship and general manager role every three years, and a dual-signature requirement for financial transactions involving both a financial controller from each side.
Potential Challenges and Risks
Experts point out potential hurdles. The equal 50/50 ownership structure, dual financial controls, and rotating management could lead to decision-making deadlocks, lack of policy continuity, and increased administrative costs. Furthermore, both parent companies have lithium salt production capacity, which could lead to future disputes over ore allocation and cost-sharing. The most significant risk remains the uncertainty surrounding the reclassification of the mines' official status from ceramic materials to lithium.
Financial Performance and Market Context
Canmax Technologies reported revenue of 7.549 billion yuan for 2025, a year-on-year increase of 14.23%. However, its net profit attributable to shareholders fell by 51.77% to 402 million yuan. The company attributed this primarily to a decline in the average selling price of its main product, lithium hydroxide, due to structural imbalances in industry supply. The毛利率 for its lithium battery materials segment was 13.62% in 2025, a significant decrease of 49.02 percentage points year-on-year.
Pei Zhenhua's Business Evolution
Pei Zhenhua, born in 1959, started his career as a technical researcher. He founded Canmax (then Tianhua Superclean) in 1997, focusing on anti-static cleanroom products for the electronics industry. The company went public in 2014. Seeking new growth avenues, Pei made his pivotal investment in CATL in 2015. This evolved into a deep industrial partnership in 2018 with the joint establishment of Tianyi Lithium, a lithium hydroxide producer. In 2020, Tianyi Lithium was integrated into the listed company, which was subsequently renamed Canmax Technologies, marking a full strategic shift to new energy. The relationship with CATL deepened further in 2025 when CATL became a major shareholder in Canmax through a share purchase from Pei and his wife.
As of June 25th, Canmax Technologies' share price closed down 3.9% at 94.98 yuan per share, with a total market capitalization of approximately 78.9 billion yuan.
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