Stock Price Surges 496%, Lithium Mining Tycoon Invests in Xibei Just for Loyalty?

Since Jia Guolong “faced off” against Luo Yonghao last year, his “circle of friends” has been repeatedly featured 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 publicly listed company Dazhong Mining (001203.SZ), and is a native of the same hometown as 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 genuine industrial capital tycoons.

The outside world once interpreted this round of investment as a “rescue operation”: Jia Guolong has deep connections, and in times of crisis, old friends step in to support Xibei through difficult times. This storyline sounds very uplifting and also fits the “jianghu” (martial arts world) vibe.

But the capital market has never been a charity event. Since 2026, Xibei’s shareholder list has been densely updated: new investors include Zhang Yong of Xinrongji, former Ant Group CEO Hu Xiaoming, and now mining magnate Lin Lairong—all entering almost simultaneously. 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 powerful investors and capital support; on the other are store closures and cash flow pressures. Behind this stark contrast, is it “righteous generosity” or a precise low-cost bottom-fishing strategy?

01 Valued at hundreds of billions?

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

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

Xinchao Media (acquired by Focus Media), added a committed investment of 1.016802 million yuan, holding 1%;

Hu Xiaoming, former Ant Group CEO, through his fund Hangzhou Zhouxuan Equity Investment Partnership (Limited Partnership), 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 has only invested a few million yuan but has obtained real equity shares.

A key valuation report further reveals: by the end of 2025, in the announcement of Focus Media’s acquisition of Xinchao Media, Zhonglian Valuation disclosed that as of September 30, 2025, the fair value of Xinchao Media’s equity in Xibei was 25.2 million yuan, corresponding to 1% of shares.

Based on this valuation, Xibei’s overall valuation is approximately 2.52 billion yuan.

It is also important to note that the same announcement disclosed that from January to September 2025, Xinchao Media 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, Xinchao Media had already reached an overall sale agreement with Focus Media in April 2025. Once this acquisition is completed, the actual beneficiary of this part of Xibei’s equity will 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’s clear that 2023 was Xibei’s peak year, and there were plans for 2024 to open over 400 stores, expand overseas, and develop a sub-brand called “Jia Guolong Small Pot Beef.” Several media outlets also reported plans for an IPO in 2026, including bringing in strategic investors to improve the equity structure.

However, so far, none of these goals or plans have been realized, and after Jia Guolong “faced off” Luo Yonghao, Xibei’s reputation and operational pressure have increased.

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

02 From 6.2 billion annual sales to an estimated 600 million loss in half a year

In September 2025, Luo Yonghao publicly questioned Xibei’s dishes as “pre-made and overpriced,” quickly sparking widespread online discussion. Jia Guolong chose to respond directly but failed to restore consumer confidence.

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

Media reports from “21st Century Business Herald” and “Ke Chuang Ban Daily” indicated that in November 2025, Xibei’s revenue was only 2.65 billion yuan, more than halving year-on-year, with fixed personnel costs reaching 1.35 billion 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 scale; 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 pressures of Xibei were 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… but employees who resigned on that day could still receive their wages. For employees, this seemed more like an “encouragement to voluntarily leave” to avoid compensation liabilities.

From 6.2 billion in annual sales to an expected 600 million loss in half a year, the “Xibei signal” Jia Guolong sent out 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 pressures, 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, facing very low risk 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.

03 “Supporters”: Hu Run’s coal mountain iron ore magnate

While Xibei’s operations faced pressure, Jia Guolong’s public stance also turned low-profile. In January 2026, he announced a “return to the front line, 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” began to attract attention.

Recently, Lin Lairong, the actual controller of Zhongda Mining and Jia Guolong’s “fellow native” from Inner Mongolia, aged 58, has been in the spotlight. The Hurun Research Institute’s “2026 Hurun Global Rich List” shows that Lin Lairong and his wife An Sumei have a combined wealth of 28 billion yuan, mainly from “Zhongxing,” climbing 1,598 places to rank 1,166th.

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

The listed company Dazhong Mining, under Lin Lairong, was formerly Inner Mongolia Dazhong Mining Co., Ltd., and 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, and by-products like mechanized sand and sulfuric acid. In recent years, it has also acquired two major 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 from a low of 7.35 yuan in July 2025—a 496.19% increase. As of the latest, 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 linked to the surge in Dazhong Mining’s stock price.

Public data indicates that Lin Lairong and An Sumei together hold 61.91% of Dazhong Mining. Based on the March 17 closing market value, this stake is worth approximately 35.86 billion yuan.

04 Behind a hundred-billion fortune: revenue shrinks by 1 billion, shareholders reduce holdings 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 through 2024, with revenue in 2024 at only 3.843 billion yuan—a drop of over 1 billion yuan from 2021.

Moreover, from Q2 2024 to the end of Q3 2025, Dazhong Mining’s net profit declined for six consecutive quarters, with gross margin dropping from over 50% to 46.86% by the end of Q3 2025.

In terms of cash flow, as of the end of Q3 2025, the company had only 1.159 billion yuan in cash, short-term loans of 2.676 billion yuan, and non-current liabilities due within one year of 415.1 million yuan.

At the same time, total assets were about 17.05 billion yuan, with total liabilities of approximately 10.41 billion yuan, and an asset-liability ratio of 61.06%. The rising ratio was mainly due to the 4.206 billion yuan paid in 2023 for the Jiadal Lithium Mine exploration rights.

Main products include pig iron and pellets, but declining prices of these main products have become a major drag on Dazhong Mining’s performance.

Lin Lairong’s response has been to focus on two major lithium mines: Jiadal Lithium Mine in Hunan and Gada Lithium Mine in Sichuan. According to the Ministry of Natural Resources’ review, these two lithium resources total 530 million tons, with lithium carbonate equivalent exceeding 4.72 million tons.

The first phase of the Hunan Jiadal Lithium Mine is planned to produce 10 million tons per year, expected to start operation in 2026.

In the first half of 2025, Dazhong Mining’s 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 its lithium business.

However, just as these positive signals emerged, shareholders of Dazhong Mining began to reduce holdings for cash.

On March 2, Lin Lairong’s associate Liang Baodong, who owns more than 5% of the shares, planned to reduce his 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%.

Between February 25 and 26, 2026, senior executive Zhang Jie sold 38,700 and 70,000 shares through bidding, totaling about 4.45 million yuan, with transaction prices of 39.84 and 41.54 yuan per share—both higher than the current stock price.

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