Trading Halt! After ten years of being listed, Huayu Mining's controlling shareholder plans to transfer ownership for the first time. Why is the significant performance increase in 2025 unlikely to prevent the major shareholder's "exit"?

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After the market closed on April 2, Huayudian Mining announced that on that day the company received a notice from its controlling shareholder, Xizang Daoheng Investment Co., Ltd. (hereinafter “Daoheng Investment”). Daoheng Investment is currently planning a share agreement transfer, which may result in a change in the company’s controlling stake.

The announcement states that, given that the above matter is still under negotiation and remains uncertain, in order to ensure fair disclosure, protect investors’ interests, and avoid abnormal fluctuations in the company’s share price, in accordance with relevant regulations, upon the company’s application, the company’s shares will be suspended from opening on April 3 (Friday), and the expected suspension period will not exceed 5 trading days.

It should be noted that this is the first time since Huayudian Mining’s IPO in March 2016 that it has issued a suspension announcement due to its controlling shareholder’s planned change in control.

Huayudian Mining expects 2025 attributable net profit to increase by more than 200% year over year

When a listed company’s controlling shareholder transfers control, the secondary market often associates it with poor operations of the listed company. However, Huayudian Mining’s situation is precisely the opposite.

According to the company’s performance pre-announcement for 2025 disclosed on January 27, Huayudian Mining expects full-year 2025 attributable net profit to be as high as RMB 800 million to RMB 900 million, representing a year-on-year increase of 215.80% to 255.28%; it also expects to achieve non-recurring item net profit of RMB 380 million to RMB 480 million, representing a year-on-year increase of 50.44% to 90.02%.

Regarding the reasons for the expected performance upsurge in 2025, Huayudian Mining said that in the reporting period, demand for nonferrous metal markets at home and abroad was strong, and prices continued to rise. Against this backdrop, the company fully benefited from the sustained upturn in the precious metals and minor metals markets, driving a substantial year-on-year increase in operating revenue.

The reporter from The Daily Economic News also noted that the core reason Huayudian Mining has extremely high value for restructuring or acquisition may be that it holds mineral resources with significant strategic importance—especially the strategic minor metal antimony, often referred to as “industrial MSG.”

In recent years, Huayudian Mining has actively laid out overseas assets. For example, it acquired 50% equity interest in “Taluminum Industry,” the largest state-owned enterprise in Tajikistan. The company stated in its 2023 semi-annual report that after the “Taluminum Industry” project reaches full production, the annual output of antimony concentrates could reach 16,000 metric tons of metal content, and gold ingots 2.2 metric tons.

Public information shows that antimony plays irreplaceable roles in areas such as photovoltaic power, defense industry, and flame retardants. It is a scarce metal that many countries around the world have included in their strategic reserve catalog.

According to Huayudian Mining’s 2025 semi-annual report, the “Taluminum Industry” project completed construction and entered trial production in April 2022, and began formal production in July 2022. It has already reached annual ore processing volume of 1.5 million tons. The company also said that the completion and commissioning of the “Taluminum Industry” project is an important step for the company’s overseas development and enhances the company’s capability for overseas expansion.

Daoheng Investment just released the pledge of 28 million shares in January this year; previously it had occurred with pledge default and disclosure violations related to “passive selling”

The reporter noted that Huayudian Mining’s controlling shareholder, Daoheng Investment, has long had a relatively high proportion of its shares pledged.

For example, as of the end of 2022, the shares of Huayudian Mining pledged by Daoheng Investment at one time accounted for 53.44% of the company shares held by Daoheng Investment (8.69% of the company’s total share capital). Usually, a high proportion of pledge by major shareholders is often to meet their own financing and liquidity needs.

It is worth noting that on January 28, 2026, Huayudian Mining announced that on January 27, 2026, Daoheng Investment had released the pledge of 28 million shares it had pledged to natural person Ye Danrong (22.44% of its holdings, and 3.41% of the company’s total share capital).

After releasing the pledge of 28 million shares, Daoheng Investment still has 20.566 million shares in a pledged status, accounting for 16.48% of its holdings and 2.51% of Huayudian Mining’s total share capital.

Past announcements show that Daoheng Investment also previously had violations involving pledge default and “passive selling.”

For example, in March 2019, Huayudian Mining announced that Daoheng Investment’s 171 million shares (32.60% of the company’s total share capital at that time) were frozen, and the freeze term lasted as long as three years (from March 2019 to March 2022). Among the frozen shares, 168 million shares had already completed pledge registration.

Starting in August 2018, the performance security ratio for the shares pledged by Daoheng Investment to Haitong Asset Management continued to remain below the warning line, constituting a material default. In July 2019 and the subsequent period, Haitong Asset Management and Haitong Securities forcibly closed positions according to the agreement, causing Daoheng Investment to repeatedly “passively sell” several million shares.

In response to the above passive selling events, since Daoheng Investment failed to disclose the selling plan 15 trading days in advance as required, it constituted an information disclosure violation. The Shanghai Stock Exchange therefore issued disciplinary decision documents to Daoheng Investment multiple times, including regulatory attention and public reprimands.

（Source: The Daily Economic News） Source: The Daily Economic News Title: Suspension from tomorrow! After ten years since Huayudian Mining’s listing, the controlling shareholder is planning a change of control for the first time; why the company’s 2025 performance surge could not prevent the “exit” of the major shareholder?

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Editor: Shi XiuZhen SF183