WILLING CORP.(SZ:002667) Hua Xia Shi Bao·2025-05-23 21:41Core Viewpoint - Weiling New Energy Co., Ltd. is shifting its focus to other minerals after suffering losses in the lithium industry for over two years, recently acquiring a majority stake in Hunan Linwu Jiayu Mining Co., Ltd. for 220 million yuan to explore tin and tungsten mining opportunities [2][4][7]. Company Overview - Weiling, formerly known as Anzhong Co., has undergone significant transformation since the change of control in late 2020, focusing on lithium business during a period of rising lithium prices, which led to substantial revenue growth in 2022 [2][4]. - The company has faced continuous losses, reporting a total loss of 556 million yuan over eight consecutive quarters, with a net asset reduction to 365 million yuan by the end of 2024 [4][5]. Financial Performance - In 2022, Weiling's revenue reached 1.186 billion yuan, over five times the previous year, and net profit turned positive with a year-on-year increase of 185.9% to 82.39 million yuan [5]. - However, by 2023, revenue remained around 1.1 billion yuan, but the company began incurring losses again, averaging 278 million yuan in annual losses during the downturn of the lithium market [5][6]. Market Conditions - The lithium market has seen a significant oversupply due to rapid capacity expansion, leading to a decline in prices, with battery-grade lithium carbonate prices dropping below 65,000 yuan per ton by mid-May 2025 [5][6]. - The tin market is currently experiencing a supply shortage, with prices ranging from 250,000 to 260,000 yuan per ton, influenced by mining grade, limited new capacity, and geopolitical factors [3][8]. Acquisition Details - Weiling's recent acquisition of a 74.3% stake in Jiayu Mining is seen as a strategic move to diversify its operations beyond lithium, with the potential to enhance overall performance by leveraging its experience in the lithium sector [4][7]. - Jiayu Mining holds mining rights for a variety of metals, including tin and tungsten, with a mining area of 8.1815 square kilometers and an annual extraction capacity of 300,000 tons [7][9]. Future Outlook - The acquisition is expected to help Weiling stabilize its operations and potentially improve its financial performance by tapping into the cyclical nature of different metal prices [7][9]. - The tin market is projected to experience increased supply in the coming year, which may impact Weiling's ability to benefit from its new investment [9].