Rongjie shares: net profit soared by 375% in the first half of the year. Market prices of lithium products rose sharply.

SMM August 11: on the evening of August 10, Rongjie released its first-half results of 2021, KuaiBao. According to the report, in the past six months, the company achieved operating income of 335 million yuan, an increase of 176.01% over the same period last year. Of which, the net profit belonging to shareholders of listed companies reached 12.678 million yuan, up 374.87% from the same period last year.

As for the reason for the surge in the company's performance, Rongjie explained that it was mainly due to the rapid development of new energy vehicles, energy storage and other industries during the reporting period, and the strong demand for lithium battery materials and lithium battery equipment led to a sharp rise in the market price of lithium products, and the company's operating performance improved significantly.

It is worth mentioning that Rongjie shares previously issued a notice that the company's wholly-owned subsidiary Kangding Rongjie Lithium Industry Co., Ltd. has completed the project record of 2.5 million tons / year lithium ore selection project, but has not yet obtained the approval of environmental impact assessment, and the construction of the main project has not yet begun.

This move alone has allowed Rongjie shares to rise by 272.56% in stock trading since 2021, reaching the standard of abnormal volatility nine times. In this regard, Rongjie replied to a letter of concern from the Shenzhen Stock Exchange on August 7, explaining in detail the funding source and promotion of the project, which mentioned that according to the project feasibility report, if the original ore source is effectively solved, the project will be completed and put into production. It can achieve an annual supply of about 470000 tons of lithium concentrate, which will become the spodumene concentrate selection project with the largest production capacity in China.

As of Aug. 10, the spot price of spodumene concentrate averaged $830 per tonne, up 98.8 per cent this year, according to SMM spot quotations.

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