Zhong Guo Ji Jin Bao·2026-01-14 16:19Core Viewpoint - The company, Wukuang Development, plans to acquire assets from Wukuang Mining and Luzhong Mining while divesting its existing business-related assets, leading to a significant increase in its stock price prior to suspension [2] Group 1: Transaction Details - On December 29, 2025, the company received a notification from its controlling shareholder, China Minmetals Corporation, regarding a proposed asset swap involving the acquisition of Wukuang Mining and Luzhong Mining through asset exchange, issuance of shares, and cash payments [5] - The transaction involves swapping the company's existing major assets and liabilities (excluding retained assets and liabilities) for 100% equity stakes in Wukuang Mining and Luzhong Mining, with the difference in transaction prices to be settled through share issuance and cash payments [5] - The audit and evaluation work related to the transaction is still ongoing, and the final transaction price for the target assets has not yet been determined, but it is expected to constitute a major asset restructuring [5] Group 2: Business Operations - Wukuang Mining and Luzhong Mining primarily engage in iron ore mining, processing, and sales of iron concentrate products, holding mining rights in regions such as Liaoning, Anhui, and Shandong, with significant control over iron ore resources in the domestic industry [6] - The company currently operates in resource trading, metal trading, and supply chain services, with its previous trading business facing intense market competition and vulnerability to fluctuations in supply and demand, commodity prices, and industry credit environments [6] Group 3: Financial Performance - Following the completion of the transaction, Wukuang Mining and Luzhong Mining will be included in the company's consolidated financial statements, while the existing trading assets will be divested, which is expected to enhance the company's profitability and facilitate a transformation of its core business [7] - For the first three quarters of 2025, the company reported a revenue of 40.893 billion yuan, a 20% year-on-year decline, and a net profit attributable to shareholders of 114 million yuan, a 16% decrease; the company's net profit excluding non-recurring items was negative [7] - In contrast, Wukuang Mining and Luzhong Mining demonstrated stronger profitability, with Wukuang Mining reporting a revenue of 2.317 billion yuan and a net profit of 503 million yuan, while Luzhong Mining reported a revenue of 1.256 billion yuan and a net profit of 185 million yuan for the same period [7] Group 4: Market Reaction - To facilitate the transaction, the company suspended trading on December 30, 2025, and is scheduled to resume trading on January 15, 2026 [8]