Confidence to Navigate Cycles Smoothly

Global Finance Talk

Author: Ding Yi

Produced by: Global Finance Talk

As more post-90s individuals step into the shoes of the second-generation entrepreneurs, taking over from their parents to become chairpersons of listed companies and shoulder business responsibilities, the succession of family enterprises is often fraught with challenges. Meanwhile, the outside world watches them with curiosity, constantly scrutinizing them, sometimes with mixed praise and criticism.

Xiao Ning has always maintained a low profile, rarely appearing in the public eye.

A previous announcement regarding the actual controller of Zangge Mining sparked wide market discussion. Out of a strong sense of responsibility to the listed company and its investors, Xiao Ning decided to speak publicly as the chairman of Zangge Mining, sharing the challenges and achievements he experienced since taking the helm in 2021, as well as his vision for the future.

01 From a Novice to Decisive Leadership

Xiao Ning, born in 1990, as a second-generation entrepreneur, is just entering midlife, yet he is remarkably introverted and mature. Having worked for years on the Qinghai-Tibet Plateau, under harsh and low-oxygen conditions, the sun has tanned his skin, adding a sense of steadiness to his demeanor.

In interviews, Xiao Ning does not shy away from discussing his childhood. His father, having taken on family responsibilities early, entered the business world without the chance for higher education, yet devoted immense attention to his children’s education, doing everything possible to create a superior learning environment.

It was precisely his father’s perseverance and teaching by example that instilled in Xiao Ning a strong desire for success. From the age of 12, alongside his studies, he followed his father to the factory floor and participated in business negotiations, learning management, operations, and social skills. This experience also revealed another side of his father—a shrewd and courageous entrepreneur navigating the turbulent business world.

Xiao Ning jokingly recalled that when asked about his future dreams as a child, he blurted out, “I want to be the boss.”

In 2012, Xiao Ning graduated from Renmin University of China. Although he considered further studies, due to his upbringing and the needs of the enterprise, he chose not the more comfortable path, but resolutely joined Julong Copper.

Xiao Ning did not immediately step into a management position; he became the chairman’s assistant, observing closely, learning, and witnessing the more authentic side of his workaholic father.

Recalling the early days, Xiao Ning said he often accompanied his father on domestic and international trips, logging up to 700 flight hours a year, sometimes visiting two or three locations in a single day—rushing to the airport before dawn, holding meetings upon arrival, grabbing a quick meal, and rushing to the next destination.

Over time, the childhood utterance, “I want to be the boss,” planted a seed that gradually grew into a towering ambition.

Soon, Xiao Ning took full control of Julong Copper. As China’s largest world-class copper project, Julong Copper’s mines span altitudes of 4,000–5,400 meters on the snow-capped plateau. Ten years of operations and management tested not only Xiao Ning’s managerial skills but also his will and determination.

The story between Zangge Mining and Julong Copper is likely familiar to many investors. Since 2004, years of operations included visits to renowned mining regions in South America and Australia. From the beginning, substantial effort was invested in designing and constructing the mines according to global standards. His father had strong emotional attachment to Julong Copper, but the development proved far more challenging than anticipated, requiring significant capital and long investment cycles. Later, Xiao Ning decisively advocated transferring control and introducing Zijin Mining.

At that time, besides Zijin Mining, several major domestic mining companies, including China Nonferrous, Jiangxi Copper, and Chalco, engaged in substantive negotiations. Zijin was not the highest bidder, but considering factors like scale, technology, and management philosophy, choosing Zijin would better ensure the development of Julong Copper’s mines and generate sustained returns. Xiao Ning and his team ultimately selected Zijin Mining.

Undeniably, Zangge Mining provided necessary financial support during the early and mid-stages of Julong Copper, aiding mine development and construction. Yet it was Xiao Ning’s decisive judgment that allowed the listed company to breathe and gain greater maneuvering space.

According to the latest annual report, in 2023 Julong Copper produced approximately 154,400 tons of copper. Zangge Mining, holding 30.78% of shares, realized an investment gain of about 1.296 billion RMB.

Furthermore, the second-phase expansion project has been approved by relevant authorities, scheduled for completion and commissioning by the end of 2025. At full production, the total annual ore mining and processing volume will exceed 100 million tons, and annual copper production will reach 300,000–350,000 tons, making it the largest single copper mine in China and the largest commissioned in the world this century.

The successful equity operation of Julong Copper marked Xiao Ning’s first major challenge in his growth path, transforming him from a fledgling youth into a decisive young entrepreneur.

02 Soaring on the Plateau, Eyeing the World

Naturally, in 2021 Xiao Ning became chairman of listed Zangge Mining. The “second-generation entrepreneur” label was no longer just a title—it became a responsibility.

For Xiao Ning, this was a crucial turning point. At the time, Zangge Mining’s operations and performance were far from optimistic, with public scrutiny and a debt crisis looming. Rather than simply “taking over,” it was more like “assuming responsibility in a crisis.”

Looking back, Xiao Ning said, “2021 was the toughest year. My brother Xiao Yao and I navigated difficulties together.” Pausing, he continued, “It was also the year Xiao Yao led cooperation negotiations with Shagang, China’s largest private steel enterprise. We also conceived the idea of ‘building a world-class mining group’ and proposed the corporate culture of ‘dare to fight and tackle tough challenges.’”

After assuming the chairmanship, Xiao Ning’s first challenge was resolving the debt crisis and bringing in Shagang Group. Compared to the first-generation entrepreneurs’ grassroots experience, the second-generation had sharper strategic thinking and capital operations skills.

Negotiations began in 2021, and by 2022 Shagang Group completed strategic investment, becoming Zangge Mining’s second-largest shareholder. This not only provided financial support but also helped optimize the company’s governance structure and enhanced corporate credibility and market competitiveness.

03 Inner and Outer Mastery, Outlining the Blueprint

Beyond inheriting his father’s enterprise, the broad-minded second-generation entrepreneur also faces the dual challenge of integrating traditional industries with advanced management and cutting-edge technology.

Since 2002, his father had led the team in potash mining in Qinghai Salt Lake, working tirelessly on the front lines. At the same time, issues arose, such as an aging workforce and a talent gap.

Advanced management and technology rely on talent, and Xiao Ning adopted a measured strategy. Rather than abandoning tradition, he quickly launched an employee stock ownership plan and senior management compensation system, stabilizing the technical and managerial teams, emphasizing balanced composition across three generations, and strengthening talent cultivation and succession planning.

At the same time, he implemented a dual-track approach of training and recruiting to build a high-quality talent pool. First, experienced technical professionals were hired with competitive salaries; second, diligent young graduates were selected for salt lake operations. In management, the company relied on seasoned managers while introducing young, dynamic, and innovative talent to participate in operations.

Notably, Zangge Mining’s wholly-owned subsidiaries, Zangge Potash and Zangge Lithium, have become talent cultivation bases, continuously supplying skilled personnel for salt lake and Laotian potash projects.

Moreover, compared to extracting lithium from spodumene or lepidolite, Zangge Mining’s proprietary “adsorption + membrane” lithium extraction from salt lakes has significant cost advantages, enabling lithium carbonate production at about 30,000 RMB/ton.

Using the self-developed process “continuous adsorption + membrane impurity removal + one-step lithium precipitation” for battery-grade lithium carbonate, lithium can be extracted from brine with extremely low concentrations (50 ppm), a feat no other company worldwide has industrialized. This technology is applied in the 10,000-ton/year production facility at Chaerhan Salt Lake.

Zangge Mining has also engineered continuous-bed adsorption for lithium extraction, doubling adsorption efficiency with a novel tower structure, giving a cost advantage among peer companies.

Through process optimization, lithium recovery exceeds 99%, boron removal rate reaches over 92%, and boron ion concentration is reduced below 2 ppm.

Regarding lithium extraction technology, Zangge Mining has filed and obtained multiple patents, including 2 invention patents, 1 utility patent, and 12 invention patents under substantive examination.

Leveraging salt-lake lithium extraction technology, Zangge Mining plans to actively engage in developing other Tibetan salt lakes, promoting synchronized growth of the local lithium industry and the company’s lithium business, gradually transitioning from heavy-asset to light-asset operations.

Additionally, public disclosures show that Zangge Mining continues to explore extending its potash and lithium carbonate businesses outward.

In 2023, Zangge Mining and A-share listed Xinwanda jointly established Xingge New Energy Technology (Shenzhen) Co., Ltd., potentially cooperating in the new energy freight vehicle sector.

The same year, Zangge Mining Investment, a wholly-owned subsidiary, jointly established Chongqing Junli Company with Chongqing Yuhan Electronics and co-developed the “Rongchang Sichuan-Chongqing New Energy Industrial Park” with the local government, planning to introduce 10 GWh energy storage and power batteries, 100,000 tons of cathode materials, 200,000 tons of battery recycling, and battery supporting projects, forming a closed-loop supply chain from cathode material to battery cell, battery recycling, and lithium carbonate production, developing the full new energy battery industry.

A grand blueprint belonging to Xiao Ning is gradually unfolding.

04 Confidence to Steadily Navigate Cycles

The discussion is now approaching its conclusion.

However, the reserved Xiao Ning displays highly active thinking when discussing company management. His viewpoints are calm, rational, and well-aligned with industry trends and the times.

When asked how to balance long-term value and short-term risk, Xiao Ning decisively stated: “To withstand industry cycles, one must control advantageous resources. But acquiring resources does not mean recklessly overspending; timing and maintaining flexibility are key.”

“In recent years, companies in vehicles, batteries, and lithium materials have shown near-frenzied enthusiasm for lithium resources, acquiring mines globally at high prices, causing overcapacity and temporary oversupply,” Xiao Ning stated solemnly. “Yet even as lithium carbonate prices fall, Zangge Mining benefits from low-cost salt-lake extraction, with strong resilience to cycles. Even if prices drop to 80,000–100,000 RMB/ton, our profit margins remain high.”

Indeed, lithium carbonate prices fell from a peak of 600,000 RMB/ton in November 2022 to under 100,000 RMB/ton in February 2024, causing widespread complaints. Although Zangge Mining’s 2023 performance dipped due to price fluctuations, it still achieved net profit attributable to shareholders of 3.42 billion RMB.

It is precisely Chairman Xiao Ning’s prudence that gives Zangge Mining the confidence to navigate industry cycles.

As the listed company’s operations stabilize, Xiao Ning advocates co-creation and win-win strategies, practices an investor-centric philosophy, and emphasizes shareholder returns. In 2023, a 350 million RMB share buyback plan was initiated, with repurchased shares used for equity incentives.