Analysis of Production Capacity Release Rhythm for China Tungsten High-Tech's 10,000-Ton Technical Renovation Project

The 10,000-ton mining and beneficiation technical renovation project of Shizhuyuan Company, a subsidiary of China Tungsten High-Tech, is a key part of the company’s integrated industrial layout of “Resource - Smelting - Processing”. According to the company’s official information, the project

• Tungsten Concentrate Capacity
  : Increase from the current 8,000 tons/year to 10,000 tons/year,
  representing a 25% growth
• Mining Method
  : Switch from underground mining to open-pit mining
• Beneficiation Scale
  : Expand from 2.2 million tons/year to 3.5 million tons/year
• Associated Metals
  : Output of molybdenum, bismuth, fluorite and other associated metals will increase accordingly

Based on industry characteristics and project rules, the capacity release is expected to follow the following rhythm:

1. Completion and Commissioning by the End of 2027
   : According to the company’s reply on the interactive platform, the project is expected to be completed by the end of 2027, when the annual output of tungsten concentrate is expected to reach 10,000 standard tons[2].

2. Capacity Ramp-up Cycle
   : Referring to the experience of similar mine projects, technical renovation projects usually require a
   6-12 month
   ramp-up period from commissioning to full production, mainly for:
   • Optimization of process parameters
   • Running-in and commissioning of equipment
   • Improvement of personnel operation proficiency
   • Stabilization of product quality

3. Guarantee for Smooth Transition
   : The company clearly stated that
   the technical renovation will not affect the company’s performance
   , and the company will strive to ensure a smooth transition[2].

According to the forecast of China Galaxy Securities, the company’s net profit attributable to parent company from 2025 to 2027 is expected to reach RMB 1.562 billion, RMB 2.260 billion and RMB 2.826 billion respectively[1]. After the capacity release of the technical renovation project, it will have the following positive impacts on the company:

1. Scale Effect Emerges
   : The 25% increase in tungsten concentrate capacity will significantly reduce unit production costs
2. Improved Resource Self-Sufficiency
   : Enhanced voice in the upstream resource sector and improved ability to resist tungsten price fluctuations
3. Optimized Industrial Chain Synergy
   : The integrated industrial layout of “Mine - Smelting - Processing” will be more improved
4. Increment of Associated Metals
   : By-product metals such as molybdenum, bismuth and fluorite will contribute additional profits

1. Project Construction Schedule Risk
   : The project progress is affected by factors such as construction conditions and equipment delivery
2. Capacity Ramp-up Falling Short of Expectations
   : The commissioning period of new technologies and processes may be prolonged
3. Tungsten Price Fluctuation Risk
   : Although capacity expands, the trend of tungsten prices affects profit elasticity
4. Work Safety Risk
   : Mine mining involves work safety management requirements

China Tungsten High-Tech’s 10,000-ton technical renovation project is an important part of its tungsten resource strategy. The capacity release after the project is put into operation will bring significant growth increments to the company. It is recommended that investors pay attention to:

1. Project Construction Progress
   : Track the progress of key nodes from 2026 to 2027
2. Capacity Ramp-up Data
   : Pay attention to the disclosure of output data after the project is put into operation
3. Tungsten Price Trend
   : The expansion of upstream resources coupled with the upward trend of tungsten prices will lead to simultaneous growth in volume and price
4. Continuous Asset Injection
   : The follow-up injection process of entrusted mines

[1] China Galaxy Securities - In-Depth Report: “Leading Integrated Tungsten Enterprise, Mine Injection Ushered in a New Chapter” (December 26, 2025)
[2] Sina Finance - China Tungsten High-Tech: Shizhuyuan Company’s Technical Renovation Project is Expected to Be Completed by the End of 2027 (June 5, 2025)
[3] Securities Times - China Tungsten High-Tech Improves Its Integrated Industrial Layout (December 18, 2025)