Core Viewpoint - The article discusses a controversial tungsten bar transaction involving China Rare Earth Holdings, raising questions about the valuation and legitimacy of the deal, as well as the management's handling of the situation. Group 1: Transaction Details - A transaction involved 1,600 kg of tungsten bars valued at 150 million HKD, equating to 93.75 million HKD per ton, with Malaysia's Wang Xinlan acquiring 14.3% of China Rare Earth [1][2] - The founder of China Rare Earth, Jiang Quanjun, expressed uncertainty about the actual existence and value of the tungsten bars, indicating a lack of clarity surrounding the transaction [1][3] Group 2: Valuation Discrepancies - Jiang Quanjun provided reports indicating that the market price for high-purity tungsten bars (99.995%) ranged from 1.5 million to 1.6 million HKD per ton, significantly lower than the acquisition price [4][6] - China Rare Earth's valuation was based on an average price of 12,242.23 USD per kg, leading to an estimated value of approximately 195.88 million HKD for the tungsten bars, which Jiang Quanjun contested as inflated [6][7] Group 3: Management and Governance Issues - Jiang Quanjun raised concerns about the evaluation process, claiming reliance on unverified management information and lack of independent verification of the tungsten bars [7][9] - The board of China Rare Earth dismissed Jiang's complaints as unfounded, noting that he had previously agreed to the transaction during board meetings [9][10] Group 4: Financial and Operational Challenges - Following the transaction, China Rare Earth faced significant financial issues, including debts exceeding 200 million CNY and multiple lawsuits against its subsidiaries [11][12] - The company’s core operational entities were reported to be inactive, raising concerns about its future viability and the impact of the tungsten transaction on its operations [11][12]