Rongje Expects 10x Profit Growth in First Half of 2026

Rongje株份 announced a forecast of net profit for the first half of 2026 of 900 million—1.1 billion Chinese yuan, representing growth of 956.84-1191.69% on a year-over-year basis.

Key Growth Indicators

• Net profit forecast: 900 million—1.1 billion yuan for the first half of 2026
• Rate of increase: 956.84-1191.69% year-over-year (approximately 10–12-fold increase)
• Primary driver: significant growth in volumes and prices of lithium concentrate
• Secondary factor: growth in net profit of related company Chengdu Rongje Lithium Industry
• Segment: production and sale of lithium salts and concentrates

What Changed in Production

During the reporting period, the company noted significant growth in both production volumes and sales of lithium concentrate, as well as prices for this product. Lithium concentrate is enriched ore that serves as a key raw material for the production of lithium salts. In turn, lithium salts are used in the production of lithium batteries for portable electronics, electric vehicles, and energy storage systems.

Additionally, the related company Chengdu Rongje Lithium Industry, in which Rongje株份 holds a stake, improved its performance. The extremely high growth rates at the related company reflect the strengthening of the group's positions throughout the production chain: from lithium raw material extraction to the production of final lithium compounds.

The combination of two factors—significant increases in physical delivery volumes combined with rising prices—led to substantial growth in the group's overall net profit. Such developments are typical when global demand for raw materials significantly exceeds supply.

Why Lithium Prices Are Rising

The surge in lithium concentrate and salt prices is linked to the global trend of economic electrification. Demand for battery cells is growing due to the spread of electric vehicles, which require large batteries, as well as the development of energy storage systems for solar and wind power plants. Portable electronics—smartphones, laptops, tablets—also consume significant volumes of lithium batteries.

According to analyst forecasts, global lithium demand will grow at double-digit rates over the coming several years, outpacing supply growth. This creates a favorable environment for producers such as Rongje株份.

Rongje's Position in the Global Industry

Rongje株份 holds one of the key positions among lithium raw materials and compounds producers. Through a network of production facilities and related companies, the group controls several links in the lithium battery production chain: from extraction and enrichment of lithium concentrate to production of lithium salts. The forecast of colossal profit growth demonstrates that the company has managed to take maximum advantage of favorable market conditions.

What This Means

The results of Rongje株份 reflect a broader trend—the global energy transition requires increasing amounts of lithium, and raw material producers remain the primary beneficiaries of this process. Such a significant profit growth forecast shows that demand for lithium materials remains strong, and prices remain high, at least in the first half of 2026. If current price and volume trends continue, the company may continue to demonstrate strong financial results in the second half of 2026.