Zhitong Finance App News, Xiamen Tungsten Industry (600549.SH) announced that the company plans to invest 256 million yuan in cash to acquire 13.0332% of Jiangxi Jutong's shares held by the related party Fujian Juhong Rare Metals Investment Partnership (Limited Partnership) (“Juhong Fund”), and plans to invest 192 million yuan in cash to acquire 9.7749% of Jiangxi Jutong's shares held by the related party Xiamen Sanhong Tungsten & Molybdenum Co., Ltd. (“Xiamen Sanhong”), with a cash investment of 145 million yuan to acquire related party Fujian Rare Earth (Group) Abbreviated as “rare earth The “Group”) holds 7.3601% of Jiangxi Jutong's shares, and plans to invest 593 million yuan in cash to acquire 30.1683% of Jiangxi Jutong's shares.
Jiangxi Jutong is the operator of the development and construction of the Dahutang tungsten mine. It currently holds the Dahutangbei District tungsten ore mining license (certificate number: C3600002011013120103925) and the Dahutangnan tungsten ore mining license (certificate number: C3600002011013120103924). After the transaction is completed, the company will directly hold 31.5166% of Jiangxi Jutong's shares and will sign a “Concerted Action Agreement” with the Rare Earth Group, where the company will lead the operation and management activities of Jiangxi Jutong. After the acquisition is completed and the “Concerted Action Agreement” comes into effect, Jiangxi Jutong will become the subject of actual control of the company, and Jiangxi Jutong will be included in the scope of the company's consolidated financial statements.
With the continuous increase in the company's production capacity in the back-end deep processing and application fields of the tungsten industry chain such as hard alloys, cutting tools, tungsten wire, etc., the company's demand for tungsten resources is increasing year by year; through the acquisition of 30.1683% of Jiangxi Jutong's shares, it will help the company increase its resource reserves, thereby enhancing its ability to supply raw materials, ensure the stability of the company's production and operation, reduce related transactions, which is conducive to the company's sustainable development and is in line with the company's strategic development plan. Jiangxi Jutong is currently not producing, and it is not expected to have a significant impact on the company's performance in the short term.