On August 1, 2025, Zangge Mining (000408.SZ) announced its financial results for the first half of 2025, highlighting a robust net profit of 1.8 billion yuan (US$250 million)—a 38.8% year-on-year increase. Despite a 4.74% decline in revenue to 1.678 billion yuan, the company’s emphasis on cost control and operational efficiency drove substantial profit growth. Key financial metrics reflect the company’s solid position: total assets were 16.893 billion yuan, shareholders’ equity was 15.723 billion yuan, and the debt-to-asset ratio was 7.03%, indicating robust financial health.
The company’s core potash operations were a standout performer. Production reached 485,200 tons, accounting for 48.52% of the annual target, and sales surged to 535,900 tons, reaching 56.41% of the target. Average selling prices increased 25.57% year-over-year to 2,845 yuan per ton, while production costs decreased 7.36% to 996 yuan per ton. These factors drove the gross margin up 13.56 percentage points year-on-year to 61.84%. The segment’s success was driven by rising domestic potash prices amid reduced global supply, operational improvements through new brine extraction points, and infrastructure upgrades that enhanced production stability.
In contrast, the lithium carbonate segment faced challenges despite technological advancements. Production totaled 5,170 tons (47% of the target), and sales reached 4,470 tons (40.64% of the target). The average price was 67,470 yuan per ton, and production costs were 41,478 yuan per ton. Revenue plummeted 57.9% year-over-year to 0.267 billion yuan, reflecting market pressures. However, the company is addressing regulatory compliance issues to resume lithium production after a temporary suspension and is committed to reducing costs and increasing efficiency.
A strategic investment in Julong Copper proved pivotal, with the company’s 30.78% stake generating 1.264 billion yuan in investment income—accounting for 70.22% of net profit. Julong Copper’s production of 92,800 tonnes of copper concentrate and 47.82% year-on-year revenue growth underscored its contributions.
Looking ahead, Zangge Mining is accelerating growth initiatives. The Mami Cuo Lithium Project, having secured all necessary permits, is slated to commence construction in Q3 2025. Ongoing operational improvements prioritize cost reduction and efficiency, aligning with efforts to resume lithium production in compliance with regulatory requirements.
“Despite market volatility, our disciplined execution and stringent cost management have delivered strong results,” remarked a company spokesperson, emphasizing the commitment to sustainable development of China’s salt lake resources while creating long-term shareholder value. The outlook for H2 2025 remains positive, with expectations of stable potash market conditions, potential lithium price recovery, continued momentum from Julong Copper, and progress on the Mami Cuo project.
As China’s leading salt lake resource developer, Zangge Mining specializes in potassium and lithium resources, operating the country’s largest potassium chloride production base at Qarhan Salt Lake while expanding lithium carbonate capacity. Its integrated approach to resource utilization and strategic investments position the company for resilience and growth in dynamic market environments.
A strategic investment in Julong Copper proved pivotal. The company’s 30.78% stake generated 1.264 billion yuan in investment income, accounting for 70.22% of net profit. Julong Copper’s production of 92,800 tons of copper concentrate and its 47.82% year-over-year revenue growth underscored its contributions.
Looking ahead, Zangge Mining is accelerating growth initiatives. The Mami Cuo Lithium Project has secured all necessary permits and is scheduled to begin construction in Q3 2025. Ongoing operational improvements prioritize cost reduction and efficiency, aligning with efforts to resume lithium production in compliance with regulatory requirements.
“Despite market volatility, our disciplined execution and stringent cost management have delivered strong results,” a company spokesperson remarked, emphasizing the commitment to the sustainable development of China’s salt lake resources and the creation of long-term shareholder value. The outlook for the second half of 2025 remains positive, with expectations of stable potash market conditions, potential lithium price recovery, continued momentum from Julong Copper, and progress on the Mami Cuo project.
As China’s leading salt lake resource developer, Zangge Mining specializes in potassium and lithium resources. The company operates the country’s largest potassium chloride production base at Qarhan Salt Lake and is expanding its lithium carbonate capacity. Its integrated approach to resource utilization and strategic investments position the company for resilience and growth in dynamic market environments.
