Liqin Resources IPO: Cai Jianyong's Annual Salary of 25.17 Million, Former Wife Buys Stock for 0.00001 Yuan

Text/瑞财经 Cheng Mengyao

After two years and completing eight guidance sessions, the leading domestic nickel industry chain company, Lijin Resources (02245.HK), has had its application for listing on the Shenzhen Stock Exchange Main Board accepted. As one of China’s largest nickel ore traders, Lijin Resources’ business scope has expanded to include nickel mining, smelting, and downstream new energy materials.

In the context of Hong Kong-listed peers such as Tianqi Lithium (002709.SZ), Xingwangda (300207.SZ), Xinyuan Materials (300568.SZ), EVE Energy (300014.SZ), and GEM (002340.SZ), Lijin Resources’ move to return to A-shares has attracted the attention of the entire nickel industry.

So, how strong is Lijin Resources? From its cash flow structure, the company has a good self-sustaining ability. Over the past three full fiscal years, its operating activities have consistently generated stable net cash inflows. However, due to ongoing expansion investments, relying solely on internal operations seems insufficient to meet growth needs, and external financing is still required to support development. The net cash flow from financing activities has remained positive but has significantly decreased in scale.

As of June 30, 2025, Lijin Resources held RMB 7.675 billion in cash, with short-term loans of RMB 9.034 billion, non-current liabilities due within one year of RMB 1.694 billion, a short-term debt gap of RMB 3.053 billion, and long-term borrowings of RMB 5.651 billion.

01

CATL invests 700 million yuan to acquire shares

Valuation exceeds 24.7 billion yuan

Founded in 2009, Lijin Resources started with nickel ore and nickel pig iron trading, gradually becoming a leader in nickel product trading. It is the largest nickel ore trader in China.

Leveraging years of industry experience in nickel trading, Lijin Resources has continuously extended into downstream nickel industries. In 2017, it acquired Hui Ran Industrial, and in 2018, it partnered with Indonesian partners to jointly invest in wet and pyrometallurgical projects (referred to as the OBI projects), completing multiple links within the industry chain. It is the first domestic service provider to extend from nickel product trading to nickel production, focusing on the entire nickel industry chain.

On December 1, 2022, Lijin Resources listed on the Hong Kong Stock Exchange. Cornerstone investors included subsidiaries of CATL (300750.SZ), GEM (002340.SZ), and Rongbai Technology (688005.SH). Based on an IPO price of HKD 15.60 per share, CATL’s investment cost was HKD 784 million, about RMB 700 million; GEM and Rongbai each invested RMB 392 million.

CATL’s cooperation with Lijin Resources began in 2020. The two jointly established Ningbo Puking CATL, with a total investment of about USD 5.9 billion, to develop the full industry chain of Indonesian nickel mines, wet smelting, and battery materials.

Since listing, its stock price has shown a V-shaped trend. As of March 12, 2026, Lijin Resources closed at HKD 23.48 per share, with a total market value of approximately HKD 36.5 billion.

Referring to similar A-share peers such as Huayou Cobalt (603799.SH), with a total market cap of RMB 128 billion during the same period, Lijin Resources’ return to A-shares is expected to trigger a valuation surge.

Huayou Cobalt mainly engages in R&D and manufacturing of new energy lithium battery materials and cobalt new materials. Its main products include cobalt, nickel, ternary precursors, copper, trading, and others. In January-June 2025, Huayou Cobalt’s revenue was RMB 37.197 billion, twice that of Lijin Resources during the same period.

For its return to A-shares, Lijin Resources plans to raise no more than RMB 4.047 billion, to be used for wet slag resource utilization demonstration projects and MHP refining projects. Based on a shareholding ratio of no less than 10% and no more than 16.40% post-issuance, the estimated valuation ranges from RMB 24.677 billion to RMB 40.47 billion, attracting market attention within the current lithium battery industry chain.

Lijin Resources stated that this financing on the Shenzhen Stock Exchange will help leverage the advantages of both capital markets, broaden financing channels, optimize the capital structure, enhance core competitiveness and risk resistance, and support the company’s deepening of nickel industry layout in Indonesia and the Belt and Road regions. It will also strengthen resource supply guarantees for downstream domestic companies such as new energy vehicles and stainless steel industries.

02

Steady revenue growth, net profit fluctuates

90% of revenue from domestic markets

As a key participant in the global nickel industry, Lijin Resources’ upstream suppliers mainly include major nickel miners in Indonesia and the Philippines. Its downstream markets focus on new energy vehicle battery materials and stainless steel, with broad prospects and extensive applications.

The demand for ternary lithium batteries driven by global new energy vehicles, intelligent robots, drones, and other high-end applications provides significant growth space for Lijin Resources.

From 2022 to 2024 and January-June 2025 (referred to as the reporting periods), Lijin Resources’ revenue was RMB 18.319 billion, RMB 21.286 billion, RMB 29.846 billion, and RMB 18.497 billion, respectively. As production lines for nickel products continued to come online and downstream demand remained strong, sales steadily increased, and scale expanded.

During the same periods, inventory and accounts receivable also grew. Inventory book values were RMB 1.151 billion, RMB 2.189 billion, RMB 3.368 billion, and RMB 4.396 billion, accounting for 13.05%, 21.31%, 26.75%, and 28.22% of current assets, respectively. Inventory provisions were RMB 0, RMB 32.499 million, RMB 117.3 million, and RMB 0. Accounts receivable book values were RMB 1.418 billion, RMB 1.665 billion, RMB 2.105 billion, and RMB 2.298 billion, representing 16.09%, 16.21%, 16.72%, and 14.75% of current assets.

In terms of business segments, trading and production of nickel products are core revenue sources. In each period, combined revenue from these two segments was RMB 17.378 billion, RMB 20.377 billion, RMB 28.545 billion, and RMB 17.489 billion, accounting for over 94% of total revenue.

Benefiting from the phased commissioning of the OBI project, nickel product sales increased year by year. Main business revenue proportions were: 47.80%, 57.08%, 56.55%, and 44.73% for nickel trading; and 52.20%, 42.92%, 43.45%, and 55.27% for nickel production.

Lijin Resources’ nickel product trading mainly includes laterite nickel ore, nickel pig iron, and nickel-cobalt compounds. Downstream customers are mainly stainless steel manufacturers and large, creditworthy bulk commodity traders. In 2024, its global ranking in nickel pig iron sales was first, accounting for about 10.4% of the global demand that year, and it was China’s largest nickel ore supplier with a market share of approximately 35.8%.

During the reporting period, with the phased commissioning of the HJF nickel pig iron production line, trade volume and revenue from nickel pig iron increased significantly. In 2024 and January-June 2025, 75.23% and 71.19% of revenue in nickel trading came from nickel pig iron sales, while revenue from nickel-cobalt compounds was zero. In the first half of 2025, sales volume was 64,700 metal tons of nickel pig iron and 6.8328 million wet tons of laterite nickel ore.

Price-wise, during the reporting periods, the average unit prices for laterite nickel ore were RMB 412.45/湿吨, RMB 300.35/湿吨, RMB 299.47/湿吨, and RMB 329.79/湿吨. Nickel pig iron prices fluctuated with nickel market prices, with a general downward trend in average unit prices.

Net profit attributable to the parent after deducting non-recurring gains and losses was RMB 1.727 billion, RMB 1.001 billion, RMB 1.842 billion, and RMB 1.396 billion for each period. In 2024, revenue and net profit after deducting non-recurring gains increased by 40.21% and 84.04%, respectively.

Mainly deriving gross profit from nickel production, the gross profit margin of nickel products accounted for 86.30%, 87.07%, 90.78%, and 90.45% of the main business gross profit in each period. Among products, nickel-cobalt compounds had gross profit margins of 49.43%, 38.42%, 42.73%, and 39.73%, contributing the highest gross profit margin and accounting for 81.02%, 83.67%, 89.43%, and 79.16% of main business gross profit.

Self-produced nickel-cobalt compounds mainly include MHP and nickel sulfate, both used for manufacturing downstream ternary power batteries. They are mainly sold to domestic new energy material manufacturers, indirectly affected by domestic EV demand fluctuations. Revenue from China accounted for high proportions: 91.25%, 98.67%, 88.52%, and 90.66%.

03

Dependence on Indonesian raw materials

Ban on laterite nickel ore exports looming

Nickel ore is a scarce resource. For industry participants, stable and sufficient nickel ore supply is crucial. Globally, nickel deposits are classified into seven types, with laterite deposits accounting for 57% of proven resources, mainly distributed in tropical countries within 30 degrees north and south of the equator, including Indonesia, the Philippines, Cuba, Brazil, Papua New Guinea, and New Caledonia.

In nickel trading, Lijin Resources mainly sources laterite nickel ore from Indonesia. For nickel production, it primarily smelts and processes nickel pig iron and nickel-cobalt compounds in Indonesia. The company has established long-term cooperation with Indonesian partners, including long-term supply agreements for laterite nickel ore and joint ventures such as HPL, ONC, KPS, and HJF.

During each period, the proportion of procurement costs spent on Indonesian partners was: 25.75%, 54.21%, 43.98%, and 32.94%. The proportion of nickel pig iron purchased from Indonesian partners was: 62.24%, 100%, 78.54%, and 65.3%.

Indonesian partners also supply the laterite nickel ore used in the company’s smelting operations, accounting for 54.52%, 70.51%, 64.32%, and 58.89% of total laterite nickel ore procurement during each period. According to Zhuo Shi Consulting, Lijin Resources’ wet smelting project in Indonesia’s Obi Island is the first such project in the country.

The company’s production base in Obi Island, Indonesia, has a wet smelting capacity of 120,000 metal tons of nickel-cobalt compounds. Its pyrometallurgical projects are gradually coming online, with a total capacity of 185,000 metal tons of nickel pig iron after full operation. Additionally, its joint-venture pyrometallurgical project has an annual capacity of 95,000 metal tons of nickel pig iron.

Furthermore, the company’s development is also influenced by external trade policies.

For example, in 2022, due to events like the London Metal Exchange nickel short squeeze, global nickel prices fluctuated sharply and surged to high levels. Lijin Resources reported net profit of RMB 3.016 billion that year. As the impact of these events subsided, nickel prices gradually fell, and combined with macroeconomic factors and slowing downstream demand, net profit in 2023 declined to RMB 1.72 billion.

Additionally, the Indonesian government has strengthened mineral resource controls in recent years. In 2020, Indonesia fully banned the export of unprocessed laterite nickel ore. In March 2025, it revised the mineral resource pricing (HMA) and increased non-tax revenue rates in April of the same year. Long-term, stricter policies may limit operations at Indonesian production bases, potentially affecting overall business stability, profitability, and future development.

When Indonesia’s export ban was implemented in 2020, the company was temporarily affected. To ensure supply, it turned to procure nickel ore from the Philippines, New Caledonia, and other resource-rich regions. Its production base in Suqian, Jiangsu, uses Philippine-sourced red soil nickel ore for its pyrometallurgical projects, with a capacity of 18,000 metal tons of nickel pig iron.

Notably, in February 2025, the Philippine Senate passed Bill No. 2826, proposing a total ban on unprocessed nickel ore exports starting in 2030, to emulate Indonesia’s downstream smelting industry development. However, due to industry opposition, the government removed the “total ban” clause in the bill signed in September 2025.

If the Philippines enacts an export ban on laterite nickel ore in the future, Lijin Resources would face higher procurement costs and logistical challenges, as sourcing from more distant regions like Turkey, New Caledonia, or Guatemala would be necessary. The stability, quantity, and quality of supplies from these regions may not meet the company’s large-scale needs.

Currently, Lijin Resources operates two main production bases: Obi Island in Indonesia and Suqian in Jiangsu. To enhance competitiveness and sustain growth, the company continues investing in nickel smelting projects. As of June 2025, four of the 12 RKEF production lines at the KPS pyrometallurgical project have been commissioned, with remaining lines expected to come online by 2026.

04

Cai Jianyong’s two spousal transfers

Brothers earn millions annually

As of the filing, Lijin Resources is controlled by Cai Jianyong, who directly and indirectly holds 51.42% of voting rights and serves as chairman, making him the actual controller. In 2024, Cai Jianyong’s annual salary was RMB 25.17 million.

According to Wind, among A-share chairmen, only three earn over RMB 20 million annually: Li Ge of WuXi AppTec (603259.SH), Li Xiting of Mindray (300760.SZ), and Ouyang of BeiGene (688235.SH). Cai Jianyong’s RMB 25.17 million ranks second.

Additionally, Cai Jianyong has arranged key positions for family members and paid high salaries. In 2024, his three brothers’ combined annual salary reached RMB 45.05 million.

Specifically, brothers Cai Jianwei and Cai Jiansong hold 1.32% and 0.99%, respectively. Cai Jianwei is an executive director and vice president, earning RMB 19.07 million in 2024; Cai Jiansong became deputy general manager in December 2024, earning RMB 800,000 in just one month. His daughter, Cai Xiaou, holds 0.66% of shares but has no official position. During the period, Lijin Resources paid her RMB 1.323 billion in cash dividends.

Moreover, executive director and vice president Fei Feng, and former supervisor Dong Dong, also receive annual salaries exceeding RMB 10 million.

Notably, in August and November 2024, Cai Jianyong transferred a total of 8% of shares to Xie Wen at a price of RMB 1,247.44, with a per-share price of RMB 0.00001—almost zero cost. Based on the March 12 closing price, this valuation is about RMB 2.9 billion.

Xie Wen, born July 1985, is currently director, manager, and CFO of Beijing Nianxin Culture Media Co., Ltd.

According to previous Hong Kong IPO prospectus, Xie Wen is Cai Jianyong’s wife, and they are recognized as the company’s controlling shareholders. The mid-year report in September 2024 still listed them as spouses. However, in this A-share listing, Xie Wen is now Cai Jianyong’s ex-wife and is not recognized as a controlling shareholder. Her indirect stake is 9.77%. This means she is not bound by Cai Jiansong’s 36-month stock lock-up commitment and can reduce her holdings after a 12-month lock-up period post-listing.

Appendix: List of intermediaries involved in Lijin Resources’ listing

Sponsor: China International Capital Corporation Limited

Auditor: EY Huaming LLP (Special General Partnership)

Law Firm: Zhejiang Tiance Law Firm

Valuation Agency: Kun Yuan Asset Appraisal Co., Ltd.

Related Company: Lijin Resources