SHRC(SH:600392) Mei Ri Jing Ji Xin Wen·2025-05-15 11:19Core Viewpoint - Shenghe Resources announced a full acquisition of Peak Resources, aiming to diversify its supply chain despite the target company's current losses and zero revenue for 2023 and 2024 [1][3][8]. Group 1: Acquisition Details - Shenghe Resources' wholly-owned subsidiary plans to acquire 100% of Peak Resources for AUD 15.8 million (approximately RMB 74.26 million), which includes an existing 19.86% stake [1][2]. - The core asset of Peak Resources is the Ngualla rare earth project in Tanzania, which has a resource estimate of 214 million tons with an average grade of 2.15%, translating to 4.61 million tons of rare earth oxides (REO) [2][3]. - The Ngualla project has received special mining permits and has recently expanded its mining area from 18.14 square kilometers to 50.59 square kilometers [2]. Group 2: Financial Performance - Peak Resources reported zero revenue for both 2023 and 2024, with a net loss of approximately RMB 48.95 million in 2023 [3][4]. - As of December 31, 2024, Peak Resources had total assets of approximately RMB 403 million and total liabilities of about RMB 17.11 million [4]. Group 3: Market Reaction - Following the acquisition announcement, Shenghe Resources' stock price hit a limit-up, closing with a 6.67% increase [3]. Group 4: Strategic Intent - The acquisition is part of Shenghe Resources' strategy to enhance its international supply chain diversification, as indicated by previous investments and partnerships in Tanzania [7][9]. - The company aims to transform into a resource-holding public company, focusing on securing diverse raw material supplies [9].