BGT Group Co. Ltd. Sees Catalytic Momentum Amid Salt‑Lake Lithium Upswing and Strategic Expansion

BGT Group Co. Ltd. (stock code 300774) closed its session on 17 November 2025 at 16.38 CNY, trailing a 52‑week high of 19.28 CNY and a low of 7 CNY. With a market capitalisation of 7.66 billion CNY and a price‑to‑earnings ratio of 75.2, the company sits on a valuation that reflects strong investor optimism about its role in China’s burgeoning lithium‑battery supply chain.

1. Salt‑Lake Lithium Boom Fuels Share Price Surge

The past week has seen a pronounced rally in the salt‑lake lithium segment, driven by a sustained climb in lithium‑citrate spot prices—up 3,500 yuan per tonne on 19 November, bringing the average to 97,550 yuan/tonne, a new annual high. The “adsorption‑plus‑membrane” extraction technology, now the industry standard, has lowered the cost of lithium production in Qinghai and Tibet to 30,000–40,000 yuan/tonne, striking a favourable cost‑benefit ratio relative to hard‑rock mining.

BGT’s exposure to this segment is multi‑faceted:

  • Direct extraction assets: BGT operates several salt‑lake lithium plants that benefit directly from the price rebound.
  • Technology services: The company supplies membrane and adsorption solutions to peers such as Jiuwu High‑Tech and Baishib, both of which have posted concurrent gains.
  • Supply‑chain integration: The company’s vertical integration—from raw lithium to battery‑grade lithium‑citrate—positions it to capture margin upside as the market expands.

The market’s reaction was swift: on 20 November, BGT’s shares hit the daily limit up, echoing a similar surge seen in related firms such as Shengxin Lithium Energy, Zhanguang Shares, and Jiu Wu High‑Tech.

2. Strategic Acquisition of Dahuang Mining

In a move that underscores BGT’s long‑term vision, its wholly‑owned subsidiary, BGT (Beijing) New Material Technology Co., Ltd., announced the acquisition of a 55 % stake in Dahuang Mining Development Co., Ltd. (文山州大豪矿业开发有限公司) for 225 million CNY, to be paid via a combination of self‑funding and raised capital. The transaction, subject to regulatory approval, will place Dahuang under BGT’s consolidated reporting.

Key aspects of the deal:

  • Vertical integration: Dahuang operates lithium‑bearing ore mines in the Wenshan region. By bringing the mine under its umbrella, BGT secures a steady feedstock for its downstream processing facilities.
  • Debt restructuring: The acquisition will involve a targeted loan of 105 million CNY to Dahuang, earmarked for the repayment of part of its 191 million CNY debt, thereby reducing Dahuang’s leverage and improving its financial profile.
  • Future earnings potential: Although Dahuang is currently unprofitable—owing to incomplete mine development—the integration is expected to unlock synergies in logistics, technology transfer, and cost optimisation, accelerating the path to profitability.

The purchase aligns with BGT’s strategic intent to “打通产业链上下游，提升产业链效率和抗风险能力” (bridge upstream and downstream supply chains to enhance efficiency and risk resilience).

3. Macro‑Policy Context Enhances Growth Prospects

Parallel to BGT’s corporate actions, policy developments in the Beijing‑Tianjin‑Hebei (京津冀) free‑trade zone have highlighted a focus on advanced manufacturing, digital economy, and modern logistics. The zone’s new action plan, signed in Tianjin on 19 November, encourages cross‑regional collaboration and innovation—conditions that favour companies like BGT, which operate at the intersection of technology, manufacturing, and supply‑chain management.

Additionally, the Hong Kong–Shenzhen joint initiative to establish a cross‑border financial data flow mechanism (targeted for 2025–2027) signals a tightening integration of capital markets in the Greater Bay Area. BGT’s status as a listed company on the Shenzhen exchange positions it well to capitalize on any easing of capital‑access constraints.

4. Forward‑Looking Assessment

The convergence of rising lithium prices, a supportive policy environment, and BGT’s proactive acquisition strategy suggests a robust trajectory for the company:

  • Revenue expansion: With increased lithium feedstock from Dahuang, BGT can scale up production, meeting the projected demand for battery‑grade lithium from automotive and energy‑storage sectors.
  • Margin improvement: Lower extraction costs, combined with higher commodity prices, will enhance gross margins, especially as the company leverages its proprietary membrane technology.
  • Risk mitigation: Vertical integration reduces exposure to supply disruptions, a critical factor as global lithium supply chains face geopolitical and resource‑constraint pressures.

In the near term, investors should monitor the completion of the Dahuang acquisition, the progress of lithium‑citrate price dynamics, and any further policy announcements that could affect capital flows into the lithium sector. Given the current valuation, BGT remains positioned as a key player poised to reap the upside of China’s electrification push.