Core Viewpoint - Western Gold plans to acquire 100% equity of Xinjiang Meisheng Mining Co., Ltd. from its controlling shareholder Xinjiang Nonferrous Metals Industry Group for 1.655 billion yuan, reflecting a premium of 1421.66% over the book value [1][3][4]. Group 1: Acquisition Details - The acquisition price of 1.655 billion yuan is based on an evaluation that shows a net asset value of approximately 109 million yuan for Xinjiang Meisheng at the end of 2024, with an assessed value of 1.655 billion yuan, resulting in an increase of 1.546 billion yuan [3][4]. - Xinjiang Meisheng owns the Kataba Asu gold-copper polymetallic mine project, which is expected to commence production in the second half of 2025 [1][4]. - The mine has a proven ore reserve of 25.67 million tons, including 7.87 tons of gold resources, with a planned production capacity of 4,000 tons per day, yielding approximately 120,000 tons of ore and 3.3 tons of gold annually [4]. Group 2: Financial Performance - Xinjiang Meisheng reported no revenue since its acquisition by Xinjiang Nonferrous, with a net loss of 35.94 million yuan in 2024 and a net loss of 11.95 million yuan in Q1 2025 [1][3]. - Western Gold's revenue increased by 36.06% year-on-year to 1.943 billion yuan in Q1 2025, but its net profit attributable to shareholders decreased by 8.49% to 44.04 million yuan [6]. - As of March 31, 2025, Western Gold's net cash flow from operating activities was -159 million yuan, with cash and cash equivalents of 955 million yuan, indicating a funding gap of 700 million yuan for the acquisition [6]. Group 3: Industry Context - The acquisition aligns with a trend in the domestic precious metals industry, where mergers and acquisitions have become common, as seen with other companies like Luoyang Molybdenum and Zijin Mining [6][7]. - Luoyang Molybdenum is expanding into the gold sector, while Zijin Mining is adjusting its focus to enhance its position in gold production [7].