Analysis of the Injection Progress of Trust-Managed Mines by China Tungsten High-Tech

Based on the latest information I have obtained, the progress of the injection of trust-managed mines by China Tungsten High-Tech is as follows:

China Tungsten High-Tech currently trusts-manages a total of 5 tungsten mines, with a total tungsten resource volume of approximately 1.18 million tons, accounting for 11% of the proven tungsten resources in China, and an annual output of tungsten concentrate of approximately 26,000-27,000 tons [0]:

• Injection Time
  : Asset delivery completed in December 2024 [1]
• Resource Reserves
  : Home to the world’s largest operating single tungsten mine, with 560,000 tons of tungsten metal resources, accounting for over 30% of China’s tungsten resource reserves [2]
• Production Capacity
  : Annual output of approximately 8,000 tons of tungsten concentrate and over 300,000 tons of fluorite [3]
• Performance Contribution
  : In the first half of 2025, Shizhuyuan Company contributed 80% of the company’s net profit [4]

• Injection Time
  : Asset transfer and delivery for equity acquisition completed in 2025 [5]
• Production Capacity Contribution
  : The combined attributable annual output of tungsten concentrate reaches 10,600 tons [6]

According to the “Commitment Letter on Avoiding Horizontal Competition” issued by China Minmetals Corporation:

• Commitment Period
  : Within five years from the date of transaction completion in December 2024 [7]
• Resolution Methods
  : Horizontal competition will be resolved by means including but not limited to injection into the listed company, shutdown, deregistration, and transfer of equity to unrelated third parties [8]

1. Formation of a Complete Industrial Chain
   : Through the injection of Shizhuyuan and Yuanjing Tungsten Industry, the company has formed a complete tungsten industrial chain integrating tungsten mining, tungsten smelting, cemented carbide, and deep processing [12]
2. Improved Resource Self-Sufficiency Rate
   : The output of tungsten concentrate accounts for approximately 6% of China’s total tungsten output and over 4% of the world’s total tungsten output [13]
3. Advancement of Technical Transformation Projects
   : The 10,000-ton technical transformation project of Shizhuyuan is expected to be completed and put into operation in 2027. After commissioning, the attributable annual output of tungsten concentrate will increase by another 2,000 tons, reaching 12,600 tons per year [14]

• The estimated combined annual output of tungsten concentrate from the 3 remaining trust-managed mines is approximately 14,000 tons [15]
• Against the backdrop of high tungsten prices, the completion of the injection will further boost the company’s performance

According to the latest information disclosed by the company, regarding the injection arrangements for the remaining three tungsten mining enterprises, the company will actively advance relevant work in accordance with the commitment and on the premise of complying with relevant regulatory rules [16]. With the continuous injection of trust-managed mines, the company’s tungsten resource self-sufficiency rate is expected to further improve, and its valuation level is expected to rise [17].

[0] Guoyuan Securities - In-Depth Report on China Tungsten High-Tech: From Mining to Intelligent Manufacturing, Reshaping the Competitiveness of the Entire Tungsten Industrial Chain
[1] China Galaxy Securities - In-Depth Report on China Tungsten High-Tech: Leading Integrated Tungsten Enterprise, Mine Injection Ushered in a New Chapter
[2] China Post Securities - In-Depth Report on the Tungsten Industry: Tightening Supply Indicators, Export Controls Highlight Strategic Attributes
[3] Xiangcai Securities - Research Report on China Tungsten High-Tech: Injection of High-Quality Tungsten Mine Assets Consolidates the Foundation of Integration
[4] China Galaxy Securities - In-Depth Report on China Tungsten High-Tech, December 26, 2025
[5] Securities Times - Performance Analysis of Tungsten Industry Concept Stocks
[6] China Galaxy Securities - In-Depth Report on China Tungsten High-Tech
[7] China Tungsten High-Tech 2025 Semi-Annual Report
[8] Minmetals Securities - Financial Advisor’s Report on China Tungsten High-Tech Acquisition Report
[9] Huayuan Securities - In-Depth Report on China Tungsten High-Tech, April 7, 2024
[10] Huayuan Securities - Research Report on China Tungsten High-Tech
[11] China Tungsten High-Tech 2025 Semi-Annual Report
[12] Guoyuan Securities - Initial Coverage Report on China Tungsten High-Tech
[13] China Galaxy Securities - In-Depth Report on China Tungsten High-Tech
[14] China Post Securities - In-Depth Report on the Tungsten Industry
[15] China Galaxy Securities - In-Depth Report on China Tungsten High-Tech
[16] Securities Times - Financing Capital Trends of Tungsten Industry Concept Stocks
[17] China Galaxy Securities - Investment Rating on China Tungsten High-Tech