Net profit increased by nearly 30%, Rongjie Co. hits the limit-up for four consecutive days

Today,** Rongjie Co., Ltd. stock price**** once again hit the 10% daily limit,**** achieving a continuous four trading days of limit-up, reaching a 4-day, 4-board market trend.**** Specifically,**** the stock saw its first limit-up on March 24, and then continued to hit the limit on March 25, 26, and 27. On March 27 at 10:41****, the limit was officially reached, closing at 78.00 yuan/share, with a transaction volume of 31.12 billion yuan, a turnover rate of 16.09%****, and a total market value of 20.25 billion yuan.**

Rongjie Co., Ltd. stock price has continued to strengthen, with the core driver coming from the annual report for 2025 disclosed on the evening of March 23. The report shows that the company achieved an annual operating income of 840 million yuan in 2025, a year-on-year increase of 49.71%; net profit attributable to shareholders was 279 million yuan, a year-on-year increase of 29.52%; and net profit attributable to shareholders after deducting non-recurring gains and losses was 253 million yuan, a year-on-year increase of 34.55%.

At the same time, the company disclosed the profit distribution plan for 2025, proposing a cash dividend of 2.2 yuan (including tax) for every 10 shares to all shareholders, with a total expected cash dividend payout of 57.1241 million yuan (including tax), accounting for 20.49% of the net profit for the year.

The growth in the company’s performance is mainly attributed to the development of the new energy lithium battery industry, which has significantly boosted the production and sales of the company’s lithium concentrate products. The announcement revealed that in 2025, the company’s lithium concentrate (6% grade) production increased by 174.83% to 185,600 tons; the revenue from the non-ferrous metal mining and selection business related to lithium concentrate was 767 million yuan, a year-on-year increase of 92.54%, accounting for 91.25% of total revenue, making it the company’s core business.

In addition, the significant increase in net profit from the joint venture Chengdu Rongjie Lithium Industry also contributed to the year-on-year increase in the company’s operating income and profit.

It is noteworthy that to hedge against the impact of lithium carbonate price fluctuations on operating performance and inventory value, Rongjie Co., Ltd.** clearly laid out its lithium carbonate hedging business as early as March 2024.** According to the announcement at that time, the hedging business was limited to lithium carbonate varieties, with a maximum margin cap of 20 million yuan, and the estimated maximum contract value held on any trading day did not exceed 100 million yuan.

In January 2025, the company continued to promote this business, confirming that the margin amount for hedging in that year would not exceed 20 million yuan, and the highest contract value would not exceed 200 million yuan; however, due to recent fluctuations in lithium carbonate prices, the original limit could no longer meet the hedging needs, and the company approved a proposal to increase the hedging limit in June 2025, raising the margin amount to no more than 60 million yuan and increasing the maximum contract value to 350 million yuan.

Overall, in the second half of 2025, the company accumulated a total opening position of 2**.**75 billion yuan, with a closing position of 88.3264 million yuan during this period, and the value of outstanding futures contracts was 180 million yuan. By year-end, there was an unrealized loss of 63.8377 million yuan on the futures side.

The company is generally satisfied with the effect of hedging. The announcement emphasized that by selling lithium carbonate futures contracts for hedging, the company achieved a price risk hedge between the hedged items (spot) and the hedging instruments (futures), reducing profit and loss fluctuations and effectively achieving the expected risk management goals.

In December 2025,** the company again**** reviewed and approved the estimated proposal for the 2026 commodity futures hedging limit, specifying that the margin cap for conducting this business would not exceed 80 million yuan, and the estimated maximum contract value held on any trading day would not exceed 500 million yuan.******