New materials investment, China Zhongji Investment completed a targeted investment in "China Tungsten High-tech"

Recently, China Zhongji Investment completed a targeted investment in the non-public offering of China Tungsten High-Tech Materials Co., Ltd. (stock abbreviation: China Tungsten High-Tech, code: 000657). Established in 1993, China Tungsten High-Tech is the only tungsten industry control platform of China Minmetals Corporation. It possesses a complete tungsten industry chain covering tungsten resources, tungsten smelting, cemented carbide, and deep processing. It is a leading domestic cemented carbide enterprise.

Tungsten is a typical rare metal with high density, high melting point, high hardness, and corrosion resistance. Alloys containing tungsten exhibit significantly increased hardness, making it a crucial component of modern high-tech new materials. A range of electronic optical materials, special alloys, new functional materials, and organometallic compounds all require tungsten with its unique properties.

China accounts for 61.5% of the world's total tungsten reserves, but the development and utilization of tungsten resources remain at a relatively low level. In particular, a large quantity of cemented carbide cutting tools widely used in mechanical cutting tools rely on imports. Upgrading the tungsten industry is of significant strategic importance.

Currently, China Tungsten High-Tech's main business includes the research, development, production, sales, and trading of cemented carbide, tungsten, molybdenum, tantalum, niobium, and other non-ferrous metals, as well as their deep-processed products and equipment.

The company owns two of the largest cemented carbide deep-processing enterprises in China and manages five tungsten mines, two smelting plants, and two cemented carbide deep-processing plants under China Minmetals Corporation.

The tungsten mines are mainly located in Hunan and Jiangxi provinces. Currently, the company holds approximately 1.405 million tons of tungsten resources and has an annual tungsten concentrate production capacity of approximately 20,000 standard tons. The tungsten smelting enterprise, Diamond Tungsten, is located in Chenzhou, Hunan, and its products are exported to countries and regions including the United States, Germany, South Korea, and Japan.

In terms of cemented carbide, China Tungsten High-Tech owns Zhuzhou Hard Material Company, known as "the cradle of China's cemented carbide industry"; Zhuzhou Diamond Company, a leading domestic supplier of cemented carbide cutting tools; Jinzhou Company, China's largest designer and manufacturer of precision miniature drills, tools, and high-precision progressive dies for PCBs; Ziyong Company, a leader in China's tungsten-based hard-facing materials; and manages one of the largest tungsten smelting and powder product bases in China, Nanchang Hard Material. The company also owns the only national key laboratory for cemented carbide in the industry and has been granted over 1,000 patents.

In recent years, China Tungsten High-Tech has achieved significant results in import substitution, particularly in high-end manufacturing fields such as aerospace, automotive manufacturing, and engines. The products replacing imports have received widespread praise from customers. Currently, the company is further expanding its product share through joint research and development and providing supporting services.

The capital raising project of China Tungsten High-Tech's non-public offering mainly focuses on the company's advantageous areas. It will improve the company's core technology, optimize production processes, and upgrade product structure through technological transformation and capacity expansion, thereby seizing the important opportunities of the large-scale upgrading of the manufacturing industry. As China's leading comprehensive metal cutting manufacturer and service provider, China Tungsten High-Tech is committed to solving "bottleneck" technological problems, achieving further import substitution, and contributing to the development of China's high-end manufacturing industry.

Regarding the reasons for investing in China Tungsten High-Tech, Wu Fushun, Partner and Managing Director of China Zhongji Investment, stated that China Tungsten High-Tech ranks first in terms of comprehensive strength in China's tungsten mining industry. This non-public offering will promote the company's import substitution progress and continue to expand its business advantages. Currently, the tungsten industry is affected by the market environment and has reached a relatively low support level. Market reversal is expected to start, with high investment value. In addition, the tungsten mining enterprises in Jiangxi and Hengyang have already met the conditions for injection. If injected into the listed company, it will significantly enhance the profitability of China Tungsten High-Tech. This investment is expected to bring safe and stable returns. We will continue to explore investment opportunities in the industry and look forward to establishing broader cooperation with enterprises and peers.