Stock Price Surges 496%, Lithium Mining Tycoon Invests in Xibei Merely Out of Righteousness?

Questioning AI · Lin Lairong’s Investment in Xibei: Bottom-fishing or Emergency Rescue?

Introduction: Can the culinary fire escape the cold logic of the capital market?

Since Jia Guolong’s “battle” against Luo Yonghao last year, his “circle of friends” has repeatedly been in the spotlight alongside Xibei.

Recently, Inner Mongolia Xibei Catering Group (referred to as “Xibei”) completed a business registration change, with Lin Lairong becoming a new individual shareholder. This entrepreneur from Bayannur is the actual controller of Zhongxing Group and the listed company Dazhong Mining (001203.SZ), and is a hometown friend of Jia Guolong.

According to the 2026 Hurun Global Rich List, Lin Lairong and his wife An Sumei have a combined wealth of 28 billion yuan, ranking 1166th, making them true industrial capital tycoons.

The outside world once interpreted this round of investment as a “rescue”: Jia Guolong has deep connections, and at a critical moment, an old friend stepped in to support Xibei through difficulties. This storyline sounds inspiring and also fits the “jianghu” flavor.

But the capital market has never been a charity. Since 2026, the shareholder list of Xibei has been densely updated: new entries include Zhang Yong of Xinrongji, former Ant Group CEO Hu Xiaoming, and now mining magnate Lin Lairong—three capital sources almost simultaneously entering. Meanwhile, Xibei was reported to have closed 102 stores in the first quarter, with management taking pay cuts and employee wages delayed.

On one side are industry giants and capital support; on the other are store closures and cash flow strains. Behind this stark contrast, is it “righteousness and generosity” or a precise low-price bottom-fishing strategy?

Valuation of Hundreds of Millions?

Since 2026, Xibei has seen continuous investment from three capital sources:

• Lin Lairong, actual controller of Dazhong Mining, committed 2.247572 million yuan, holding 2.16%;

• XinChao Media (acquired by Focus Media), added committed capital of 1.016802 million yuan, holding 1%;

• Hu Xiaoming, former Ant Group CEO, through his fund Hangzhou Zhouxuan Equity Investment Partnership (LP), committed 2.247572 million yuan, holding 2.21%;

• Taizhou Xinrongtai Investment Co., Ltd., a platform under Zhang Yong of Xinrongji, committed 4.495145 million yuan, holding 4.42%.

Looking at the current committed amounts, each investor’s “principal” is only a few million yuan, yet they have obtained real equity shares.

A key valuation report shows that by the end of 2025, according to Zhonglian Evaluation’s report, the fair value of Xinrongji’s equity in Xibei as of September 30, 2025, was 25.2 million yuan for 1% of shares.

Based on this valuation, the overall valuation of Xibei is approximately 2.52 billion yuan.

It is also important to note that the same announcement disclosed that from January to September 2025, Xinrongji invested an additional 100 million yuan in Xibei, which the valuation report recognized as a fair value change loss of about 74.8 million yuan.

Additionally, Xinrongji had reached an overall sale agreement with Focus Media as early as April 2025. Once completed, the beneficial owner of this equity stake in Xibei would indirectly become Focus Media, a listed A-share company.

Jia Guolong has repeatedly described Xibei’s growth trajectory. According to internal letters and public interviews, Xibei’s revenue from 2020 to the first half of 2025 was 5.2 billion, 5.5 billion, 5.0 billion, 6.2 billion, 5.8 billion, and 2.9 billion yuan respectively.

It is clear that 2023 was Xibei’s peak performance year, and plans for 2024 included opening over 400 stores, expanding overseas, and developing a sub-brand “Jia Guolong Small Pot Beef.” Several media outlets also reported plans for Xibei to go public in 2026, including bringing in strategic investors to improve the equity structure.

However, so far, these goals or plans have not been realized, and after Jia Guolong’s “battle” with Luo Yonghao, Xibei’s reputation and operational pressure have increased.

Compared to past market expectations, some once valued Xibei at hundreds of billions, but can it still be worth that much now? Looking at the changes over these years, everyone might have their own answer.

From 6.2 Billion Annual Revenue to Estimated 600 Million Loss in Half a Year

In September 2025, Luo Yonghao publicly questioned Xibei’s dishes for being “pre-made and overpriced,” quickly sparking online controversy. Jia Guolong responded directly but failed to restore consumer confidence.

Jia Guolong told the media that after the controversy, Xibei’s daily revenue once plunged by over one million yuan, with both customer flow and reputation under pressure.

According to reports from “21st Century Business Herald” and “Ke Chuang Ban Daily,” Xibei’s revenue in November 2025 was only 265 million yuan, more than halving year-on-year, with fixed personnel costs reaching 135 million yuan that month. Jia Guolong also estimated that from September 2025 to March 2026, the cumulative loss would exceed 600 million yuan.

The previous expansion plans abruptly halted, replaced by a desperate struggle for survival.

In January 2026, media reported that Xibei planned to close 102 stores in the first quarter, nearly 30% of its total; nearly 4,000 employees faced adjustments; founder Jia Guolong stepped back from daily management, with founding team member Dong Junyi taking over operations.

Soon, the operational pressure was transferred to employees. In January 2026, Jia Guolong publicly promised: “All employees who leave will be paid in full.”

In February 2026, Xibei’s headquarters announced that February wages, originally scheduled for March 10, would be delayed until the end of March, with store managers and head chefs’ salaries cut by 30%. After March, further delayed wages were announced for city managers, store managers, service managers, head chefs, and department heads—while employees who resigned that day would receive their wages normally. For employees, this seemed more like an “encouragement to resign voluntarily” to avoid compensation liabilities.

From 6.2 billion annual revenue to an estimated 600 million loss in half a year, Jia Guolong’s “Xibei signal” is unlikely just emotional release.

When a chain restaurant with nearly 6 billion annual revenue falls into a trough due to public opinion and operational pressure, it is no longer seen as a “troubled brand” by capital but as an asset that can be “bought at a discount.”

These investors, though from different industries, all quickly obtained equity with small commitments, risking very little but locking in enormous future value potential.

For Jia Guolong, this might be the best choice: accept dilution at a low price, gain cash flow, and preserve the opportunity to stay at the table in the future.

“Supporters”: The Hurun Rich List Tycoon with Coal Mountain Iron Mine

While Xibei faces operational pressure, Jia Guolong’s public stance has shifted to a low profile, focusing on behind-the-scenes work. In January 2026, he stated he would “return to the front line and focus on core business,” admitting he would “no longer build a personal IP” and that he is “too paternalistic” to face the camera.

Ironically, as Jia Guolong announced his retreat, his “circle of friends” drew attention.

Recently, Lin Lairong, the actual controller of Zhongda Mining and Jia Guolong’s “hometown” in Inner Mongolia, aged 58, was highlighted. The Hurun Research Institute’s “2026 Hurun Global Rich List” shows Lin Lairong and his wife An Sumei have a wealth of 28 billion yuan, mainly from “Zhongxing,” ranking 1166th, up 1598 places.

Tianyancha shows Lin Lairong is the actual controller of Inner Mongolia Zhongxing Coal Group, has held shares in 21 companies, but has canceled 12, currently holding stakes in 9.

The listed company Dazhong Mining, formerly Inner Mongolia Dazhong Mining Co., Ltd., was officially listed on the Shenzhen Stock Exchange Main Board on May 10, 2021.

Dazhong Mining’s main business includes iron ore mining and sales, pig iron and pellet production, by-products like mechanized sand and sulfuric acid, and recent acquisitions of two large lithium mines.

Since 2025, driven by the non-ferrous market, Dazhong Mining’s stock price soared to a record high of 43.82 yuan per share, up 496.19% from the low of 7.35 yuan in July 2025. As of press time, the stock closed at 37.78 yuan, with a market cap of about 57.92 billion yuan.

The 2026 Hurun Global Rich List shows Lin Lairong and An Sumei’s wealth increased by 208%, closely related to the surge in Dazhong Mining’s stock price.

Public data indicates they hold a combined 61.91% of Dazhong Mining, with a market value of approximately 35.858 billion yuan based on the March 17 closing price.

Behind the Billionaire Wealth:

Revenue Shrinkage of 1 Billion, Shareholder Disposals for Cash

However, Dazhong Mining’s performance trend is opposite to its stock price. After reaching a peak revenue of 4.895 billion yuan in 2021, it declined for three consecutive years, with 2024 revenue at only 3.843 billion yuan, over 10 billion yuan less than in 2021.

Moreover, from Q2 2024 to the end of Q3 2025, Dazhong Mining experienced six consecutive quarters of declining net profit year-on-year, with gross margin dropping from over 50% to 46.86% by Q3 2025.

In terms of cash flow, as of Q3 2025, the company’s cash was only 1.159 billion yuan, short-term loans 2.676 billion yuan, and non-current liabilities due within a year 415 million yuan.

At the same time, total assets were about 17.05 billion yuan, total liabilities about 10.41 billion yuan, with an asset-liability ratio of 61.06%. The increase was mainly due to the 4.206 billion yuan paid for the exploration rights of the Gada lithium mine in 2023.

Main products include pig iron and pellets, but declining prices in recent years have become a major drag on performance.

Lin Lairong’s response has been to focus on two major lithium mines: Jijiashan in Hunan and Jiada in Sichuan, with a combined resource of 530 million tons and lithium carbonate equivalent over 4.72 million tons, approved by the Ministry of Natural Resources.

Jijiashan’s Phase I project is expected to produce 10 million tons annually by 2026.

In the first half of 2025, Inner Mongolia and Anhui iron ore bases contributed gross profits of 576 million and 392 million yuan respectively. In September 2025, Sichuan Gada Lithium Mine achieved revenue of 21.95 million yuan from by-product ore sales, with a gross profit of 16.36 million yuan, marking the start of profitability in lithium operations.

However, amid these positive signals, shareholders have begun to reduce holdings for cash.

On March 2, 2026, Liang Xinyu’s concerted action, Liang Baodong, planned to reduce holdings by no more than 1 million shares via centralized bidding, representing less than 0.07% of the total; Liang Baodong previously held 0.57%.

On February 25-26, 2026, senior executive Zhang Jie sold 38,700 and 70,000 shares respectively, totaling about 4.45 million yuan, with transaction prices above current market levels.

Behind billionaire Lin Lairong’s “support” for Xibei, his own company is also under ongoing operational pressure. The savvy tycoon’s “righteous” move is based on making a suitable investment at the right price.