August 1, 2025 – Zangge Mining (000408.SZ) announced impressive financial results for the first half of 2025, achieving a net profit of 1.8 billion yuan (US$250 million), marking a significant 38.8% year-on-year increase. While revenue saw a modest decline of 4.74% to 1.678 billion yuan, the company’s strategic focus on cost control and operational efficiency drove substantial profit growth.
Financial Highlights:
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Total assets: 16.893 billion yuan
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Shareholders’ equity: 15.723 billion yuan
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Debt-to-asset ratio: 7.03% (maintaining strong financial health)
Potassium Chloride Business Shines
The company’s core potash operations delivered outstanding performance:
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Production: 485,200 tonnes (48.52% of annual target)
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Sales: 535,900 tonnes (56.41% of annual target)
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Average selling price: 2,845 yuan/ton (+25.57% YoY)
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Production cost: 996 yuan/ton (-7.36% YoY)
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Gross margin: 61.84% (+13.56 percentage points YoY)
This remarkable performance was driven by:
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Rising domestic potash prices due to reduced global supply
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Operational improvements including new brine extraction points
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Infrastructure upgrades enhancing production stability
Lithium Carbonate Operations Face Challenges
While making technological advancements, the lithium segment experienced market pressures:
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Production: 5,170 tonnes (47% of target)
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Sales: 4,470 tonnes (40.64% of target)
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Average price: 67,470 yuan/ton
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Production cost: 41,478 yuan/ton
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Revenue decline: 57.9% YoY to 0.267 billion yuan
Strategic Investment Pays Off
The company’s 30.78% stake in Julong Copper contributed significantly:
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Investment income: 1.264 billion yuan (70.22% of net profit)
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Julong Copper production: 92,800 tonnes of copper concentrate
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Revenue growth: 47.82% YoY
Future Growth Projects
Zangge Mining is advancing several key initiatives:
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Mami Cuo Lithium Project: Obtained all necessary permits, with construction set to begin in Q3 2025
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Operational improvements: Continued focus on cost reduction and efficiency gains
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Regulatory compliance: Working with authorities to resume lithium production after temporary suspension
Management Commentary
“Despite market volatility, our focused execution and disciplined cost management have delivered strong results,” said a company spokesperson. “We remain committed to sustainable development of China’s salt lake resources while creating long-term value for shareholders.”
The company maintains a positive outlook for H2 2025, expecting:
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Stable potash market conditions
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Potential recovery in lithium prices
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Continued strong performance from Julong Copper
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Progress on the Mami Cuo project development
About Zangge Mining:
As a leading Chinese salt lake resource developer, Zangge Mining specializes in comprehensive utilization of potassium and lithium resources. The company operates China’s largest potassium chloride production base at Qarhan Salt Lake and is expanding its lithium carbonate production capacity.
