Lithium prices surge, *ST Dongjing hits four consecutive limit-ups! After a prominent Wuxi private equity boss took control, the company is pushing to preserve its shell, with lithium carbonate revenue increasing by over 100 million yuan.

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Fearless of delisting risks, confidently breaking into a fourth consecutive limit-up.

On March 27, *ST Dongjing (002199.SZ) opened with a limit-up, and although it faced multiple price fluctuations during the day, it ultimately had nearly 60 million shares locked, closing at 8.46 yuan/share, a rise of 4.96%, successfully achieving its fourth limit-up. Last night, it also issued an announcement regarding the abnormal fluctuation of its stock, stating that the company’s production and operation were normal recently, and there had been no significant changes in the internal and external operating environment.

Behind the fourth consecutive limit-up is the stirring interest from speculators. According to the Tonghuashun APP, *ST Dongjing appeared on the daily trading list on March 26, with the first, third, fourth, and fifth top buying and selling seats all being institutional accounts, with a total net purchase of 2.003 million yuan. Meanwhile, the speculative seat of Jiangsu’s Nirvana reborn—Shanghai Securities Suzhou Central Plaza—ranked fifth in buying with a net purchase of 3.075 million yuan, second only to the buying seat of Caitong Securities Hangzhou Tonghe Road.

However, before the stock price soared, *ST Dongjing had issued four risk alerts regarding the possibility of its stock being delisted.

*ST Dongjing mainly engages in the research, development, production, and sales of quartz crystal components, with main products including quartz crystal resonators, oscillators, and other crystal oscillator products. Due to failing to meet the revenue and net profit standards for the fiscal year 2024, *ST Dongjing triggered the financial delisting warning line and was subjected to a delisting risk warning (*ST) last March.

According to the performance forecast released by *ST Dongjing, it is expected that the net profit attributable to the parent company and the net profit after deducting non-recurring gains and losses will decrease by over 16% year-on-year in 2025, continuing to incur losses; however, operating revenue is expected to rise to 340 million to 370 million yuan, with revenue after deductions estimated at 330 million to 360 million yuan. Both lower limits have surpassed the 300 million yuan warning line.

It is noteworthy that *ST Dongjing’s revenue for the first three quarters of 2025 was 184 million yuan, with quarterly revenues of 51 million, 66 million, and 67 million yuan, showing a relatively stable trend. This indicates that *ST Dongjing’s fourth-quarter revenue is likely to be around 156 million to 186 million yuan, a year-on-year increase of 193% to 249%.

Regarding the changes in performance, *ST Dongjing stated that the main reason is the revenue from the new battery-grade lithium carbonate business for the fiscal year 2025, amounting to approximately 102 million yuan. However, during the announcement search, Times Finance found that there was no mention of the lithium carbonate business in 2025; the first mention was in the performance forecast.

In this regard, Times Finance, posing as a personal investor, called *ST Dongjing, and a related staff member stated that this business is the new revenue generated by the subsidiary Shanxi Dongtuo New Energy Technology Co., Ltd. (referred to as “Shanxi Dongtuo”), established last October. When asked why this business was developed, they responded that it was part of the company’s development arrangements, “In terms of downstream terminals, (lithium carbonate and the original business) will have some commonalities, but this business is indeed a newly opened one.”

On October 9 last year, *ST Dongjing announced its plan to use its own funds of 20 million yuan to establish a wholly-owned subsidiary, Shanxi Dongtuo, while authorizing the chairman or other authorized persons to handle the relevant matters of this external investment.

“This investment decision is based on the overall development strategy of the company, which is beneficial for enhancing the company’s comprehensive competitiveness and promoting its sustainable and healthy development. All funds required for this investment will come from the company’s own or self-raised funds and will not adversely affect the company’s financial status and operating results,” stated *ST Dongjing.

The launch of this cross-industry business coincides closely with the tenure of the new actual controller, Zhu Haifei. Just before the establishment of the lithium carbonate business subsidiary Shanxi Dongtuo, *ST Dongjing announced that Wang Hao resigned as chairman and general manager, while the board of directors elected Zhu Haifei as the chairman of the seventh board and agreed to appoint him as the general manager.

From Zhu Haifei’s background, he has served as director and general manager of Wuxi Tuohai Investment Co., Ltd. since August 2008; as the executive director and general manager of Wuxi Tuohai Equity Investment Fund Management Co., Ltd. (referred to as “Tuohai Equity Investment Fund”) since January 2015; and as a director of Wuxi Haotian Yiyi Investment Co., Ltd. (referred to as “Wuxi Haotian Yiyi”) since May 2025.

In June 2025, after a series of equity transfer operations, Wuxi Haotian Yiyi became the controlling shareholder of *ST Dongjing, with Zhu Haifei becoming the actual controller of the listed company.

Why did Zhu Haifei rapidly lay out the lithium carbonate business after taking over *ST Dongjing? Insights can be gleaned from his investment experience.

Zhu Haifei controls the Tuohai Equity Investment Fund, with a management scale exceeding 10 billion yuan, directly and indirectly holding shares in Tibet Ali Mami Cuo Mining Development Co., Ltd. and Tibet Guoneng Mining Development Co., Ltd., both of which have lithium salt lake resources that are important raw materials for new energy batteries, related to the consumer and automotive electronics fields where *ST Dongjing operates.

Additionally, an article published on the official website of Xuzhou Engineering College also stated that in the early stages of his entrepreneurship, Zhu Haifei deeply explored the industrial hinterland and systematically surveyed major lithium salt lake areas across the globe, with footprints in South America’s “Lithium Triangle,” North America’s Silver Peak Salt Lake, and the Qinghai-Tibet Plateau salt lake group, possessing knowledge of the distribution of salt lake resources, purification processes, and industrial policies.

Although the lithium carbonate business brings hope for shell preservation, risks still exist. *ST Dongjing mentioned that the revenue related to the (lithium carbonate) business income that should be deducted according to regulations has not yet been audited and confirmed, presenting uncertainties, with final figures based on the audited financial data for the fiscal year 2025 disclosed by the company. If the revenue after deductions still falls below 300 million yuan, combined with continuous negative net profit after deducting non-recurring gains and losses, *ST Dongjing will still face delisting risks.

It is noteworthy that *ST Dongjing’s recent stock price movements are synchronized with the trends of lithium carbonate futures main contracts. On March 23, the price of lithium carbonate futures main contracts stopped declining and started an upward trend, with a range increase of 14.17% by March 27.

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