Group 1: Tungsten Price Trends - Tungsten prices have been rapidly increasing over the past three months, influenced by supply-demand dynamics and strategic importance in national security and industrial manufacturing [2][3] - Domestic tungsten concentrate supply is tightening, while overseas production is limited, leading to an expected sustained high price for tungsten [2] Group 2: Company Pricing Strategy - The company has raised prices for its tungsten carbide products three times this year, effectively covering all tool specifications, with high acceptance from customers [3] - Future focus will be on technological research and development to optimize product structure and increase the proportion of high-value-added products, thereby enhancing gross profit margins [3] Group 3: Production Capacity Enhancements - After the completion of technical upgrades, the Shizhu Garden tungsten mine is expected to increase its tungsten concentrate output by 2,000 tons per year, with fluorite production exceeding 500,000 tons per year [3] - The upgrades will also enhance the mechanization of open-pit mining, leading to larger production scales and potential cost reductions [3]

Group 1 - The company conducted an investor relations activity on September 17, 2025, with three institutions participating, including Everbright Securities, Xingzheng Global Fund, and Guosheng Securities [1] - The company has established an integrated production system covering the entire tungsten industry chain, including exploration, mining, smelting, powder production, and deep processing [1] - The company reported an increase in production for tungsten concentrate, tin concentrate, and copper concentrate in the first half of 2025, with tungsten concentrate production reaching 1,849.93 tons, a year-on-year increase of 3.24% [2] Group 2 - The company achieved a sales volume of 2,657.83 tons for tungsten powder in the first half of 2025, representing a year-on-year increase of 43.68% [3] - The subsidiary, Ganzhou Aoketai, reported a revenue of 353.53 million yuan in the first half of 2025, a year-on-year growth of 15.36%, with hard alloy tool sales contributing 189.27 million yuan, up 22.6% [3] - The company is focusing on establishing long-term partnerships with quality suppliers for tungsten raw materials, while also facing challenges from price fluctuations in externally sourced raw materials [2]

Company Overview - Wald Diamond Tools Co., Ltd. is located in Langfang City, Hebei Province, and was established on August 31, 2006. The company was listed on July 22, 2019. Its main business involves the research, production, and sales of ultra-high precision and high precision superhard tools and superhard material products [1][2]. Financial Performance - For the first half of 2025, Wald achieved operating revenue of 335 million yuan, representing a year-on-year growth of 6.09%. However, the net profit attributable to the parent company was 43.62 million yuan, a decrease of 19.57% compared to the previous year [2]. - Since its A-share listing, Wald has distributed a total of 251 million yuan in dividends, with 119 million yuan distributed over the past three years [3]. Stock Performance - As of September 18, Wald's stock price increased by 95.02% year-to-date, with a 13.95% rise over the last five trading days, a 69.29% increase over the last 20 days, and a 102.51% increase over the last 60 days [1]. - The stock's trading volume on September 18 was 142 million yuan, with a turnover rate of 2.24% and a total market capitalization of 6.45 billion yuan [1]. Shareholder Information - As of June 30, 2025, Wald had 9,193 shareholders, a decrease of 4.11% from the previous period. The average circulating shares per person increased by 9.80% to 16,400 shares [2]. - Notably, the top ten circulating shareholders saw the exit of the XINGQUAN Green Investment Mixed Fund from this list [3]. Industry Classification - Wald belongs to the machinery equipment sector, specifically in the general equipment category, focusing on abrasives and grinding materials. The company is associated with concepts such as lead screws, cultivated diamonds, humanoid robots, industrial mother machines, and OLEDs [2].

Core Viewpoint - China's tungsten resources, despite being the largest producer and holder of reserves globally, have been sold at low prices, but recent government actions are leading to a significant price increase and a shift in market dynamics [1][11][14] Group 1: Tungsten's Importance - Tungsten is referred to as "industrial teeth" and is more precious than rare earth elements, with the highest melting point among metals at 3422 degrees Celsius [3][4] - It is essential in various high-tech applications, including aerospace engines and armor-piercing ammunition, highlighting its strategic value [4][6] Group 2: China's Dominance in Tungsten - China holds 52% of the world's tungsten reserves (290 million tons) and produces 82% of the global output (7.9 million tons) [6] - The province of Jiangxi alone accounts for 60% of China's tungsten production, showcasing the concentration of resources [6] Group 3: Historical Pricing Issues - In 2015, 56% of Chinese tungsten companies were operating at a loss, with prices for tungsten concentrate dropping to as low as 20,000 yuan per ton, significantly undervaluing the resource [8] - Factors contributing to low prices included excessive competition, a focus on low-value primary products, and a lack of advanced processing capabilities [8][9] Group 4: Recent Changes and Future Outlook - Since 2020, the Chinese government has implemented strict controls on tungsten mining and announced export restrictions, leading to a dramatic price increase to 170,000 yuan per ton by 2025 [11][14] - The shift from merely exporting raw materials to developing high-value products indicates a strategic transformation in China's tungsten industry, enhancing its market power [13][14]

Core Viewpoint - Wald's stock price has shown significant growth this year, with a year-to-date increase of 32.35% and notable gains over various trading periods, indicating strong market performance and investor interest [2]. Company Overview - Beijing Wald Diamond Tools Co., Ltd. is located in Langfang City, Hebei Province, and was established on August 31, 2006. The company went public on July 22, 2019. Its main business involves the research, production, and sales of ultra-high precision and high precision superhard tools and superhard material products [2]. - The revenue composition of Wald includes: superhard tools (78.59%), cemented carbide tools (14.31%), superhard materials (5.72%), and others (1.38%) [2]. - Wald belongs to the Shenwan industry classification of machinery equipment - general equipment - abrasives and grinding materials, and is associated with concepts such as lead screws, humanoid robots, margin trading, cultivated diamonds, and industrial mother machines [2]. Financial Performance - As of June 30, 2025, Wald achieved an operating income of 335 million yuan, representing a year-on-year growth of 6.09%. However, the net profit attributable to shareholders decreased by 19.57% to 43.62 million yuan [2]. - Since its A-share listing, Wald has distributed a total of 251 million yuan in dividends, with 119 million yuan distributed over the past three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders in Wald was 9,193, a decrease of 4.11% from the previous period. The average circulating shares per person increased by 9.80% to 16,400 shares [2]. - Notably, the fund "Xingquan Green Investment Mixed (LOF)" has exited the list of the top ten circulating shareholders [3]. Market Activity - On September 5, Wald's stock price increased by 2.04%, reaching 29.00 yuan per share, with a trading volume of 104 million yuan and a turnover rate of 2.43%. The total market capitalization stood at 4.378 billion yuan [1]. - The net inflow of main funds was 4.1881 million yuan, with large orders accounting for 18.49% of purchases and 14.59% of sales [1].

Group 1: Mining Production and Resources - In the first half of 2025, the company produced 1,849.93 tons of tungsten concentrate (WO3 65%), a year-on-year increase of 3.24% [2] - The production of tin concentrate (100% metal content) was 426.12 tons, up 2.71% year-on-year [2] - Copper concentrate (100% metal content) production reached 180.61 tons, reflecting a 2.02% increase year-on-year [2] - The company completed the preparation of the "Tao Xikeng (Expanded) Mineral Resource Development and Utilization Plan" and submitted it for review [3] Group 2: Cost and Price Impact - Mining costs are influenced by geological conditions, ore grades, management levels, and labor costs, leading to variability across different mines [4] - The rise in tungsten concentrate prices positively impacts the company, but significant fluctuations in raw material prices could affect production costs and operational performance [5] Group 3: Sales Performance - In the first half of 2025, tungsten powder sales reached 2,657.83 tons, a year-on-year increase of 43.68% [6] - Sales of tungsten carbide powder were 2,975.12 tons, up 19.25% year-on-year [6] - Sales of hard alloys decreased by 7.17% to 573.92 tons, while thermal spray powder sales fell by 1.93% to 222.59 tons [6] Group 4: Subsidiary Performance - In the first half of 2025, Ganzhou Aoketai achieved operating revenue of 353.53 million yuan, a year-on-year increase of 15.36% [7] - Sales revenue from hard alloy tools was 189.27 million yuan, up 2.26% year-on-year [7] - Sales revenue from bars increased by 28.30% to 143.40 million yuan [7] - Gaining profitability, Ganzhou Aoketai reported a net profit of 1.39 million yuan, recovering from a loss in the previous year [7]

Core Viewpoint - In the first half of the year, the company actively expanded its market, optimized product structure, improved product performance, and launched new products to meet market demand, resulting in significant sales growth in various product categories [1] Group 1: Sales Performance - Tungsten powder sales reached 2,657.83 tons, an increase of 43.68% year-on-year [1] - Tungsten carbide powder sales amounted to 2,975.12 tons, up 19.25% year-on-year [1] - Sales of hard alloy from the main office were 573.92 tons, a decrease of 7.17% year-on-year [1] - Thermal spray powder sales were 222.59 tons, down 1.93% year-on-year [1] Group 2: Production Output - The production of tungsten concentrate (WO3 65%) was 1,849.93 tons, an increase of 3.24% year-on-year [1] - Tin concentrate (metal content 100%) production was 426.12 tons, up 2.71% year-on-year [1] - Copper concentrate (metal content 100%) production reached 180.61 tons, an increase of 2.02% year-on-year [1] Group 3: Subsidiary Performance - The subsidiary Ganzhou Aoketai improved internal management and incentive mechanisms, enhancing sales team motivation and problem-solving efficiency, leading to a revenue of 353.53 million yuan, a year-on-year increase of 15.36% [1] - Sales revenue from hard alloy tools was 189.27 million yuan, a growth of 2.26% year-on-year [1] - Sales revenue from bars was 143.40 million yuan, an increase of 28.30% year-on-year [1] - Ganzhou Aoketai achieved a net profit of 1.39 million yuan, turning from a loss in the same period last year to profitability [1]

Core Viewpoint - The company reported a steady increase in operating performance for the first half of 2025, with significant growth in revenue and net profit, driven by a focus on safety, environmental sustainability, and technological innovation [5][6]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 239,920.59 million yuan, a year-on-year increase of 32.27% - Operating profit reached 13,732.88 million yuan, up 2.19% year-on-year - Net profit attributable to shareholders was 11,510.62 million yuan, reflecting a 2.54% increase compared to the previous year [5]. Operational Highlights - The company maintained a strong commitment to safety and environmental protection, with no major safety incidents or environmental pollution events reported during the period [6]. - The company successfully advanced resource integration and key engineering projects, including the completion of various resource verification reports and development plans [7]. - Product research and development efforts led to the introduction of new technologies and products, enhancing competitiveness in the market [8][9]. Market Development - The company actively expanded its market presence and optimized product structure, resulting in stable growth in sales and revenue, particularly in the bar business [10]. - The company developed over 1,400 new products targeting industries such as aerospace, energy, and automotive [9]. Digital Transformation - The company made significant strides in digitalization and automation, implementing smart equipment upgrades and digital systems to enhance production efficiency and quality [11][12].

Core Viewpoint - The report highlights the financial performance and operational strategies of Beijing Worldia Diamond Tools Co., Ltd. for the first half of 2025, indicating a growth in revenue but a decline in profits due to increased competition and costs. Financial Performance - The company achieved a revenue of RMB 335.05 million, representing a 6.09% increase compared to the same period last year [3] - The total profit decreased by 23.25% to RMB 48.72 million, while the net profit attributable to shareholders fell by 19.57% to RMB 43.62 million [3][17] - The net cash flow from operating activities was RMB 61.50 million, down 22.60% from the previous year [3] Dividend Distribution - The company proposed a cash dividend of RMB 1.2 per 10 shares, totaling approximately RMB 18.11 million, which accounts for 41.52% of the net profit for the reporting period [3] Business Overview - The company positions itself as a leading provider of cutting tool solutions in the high-end market, specializing in superhard and carbide tools, as well as diamond functional materials [17] - Key products include diamond saw blades, grinding wheels, and PCD/PCBN tools, which are used in various industries such as automotive, aerospace, and electronics [17][18] Industry Context - The cutting tool industry is crucial for modern manufacturing, with tools being referred to as the "teeth of industry," impacting product quality and efficiency [10] - The market for cutting tools in China is growing, with an increasing share of domestic consumption being met by local manufacturers, reducing reliance on imports [12][13] - The demand for superhard tools is rising due to advancements in manufacturing processes and the need for higher precision and efficiency [11][14] Research and Development - The company invested RMB 26.86 million in R&D, a 14.11% increase year-on-year, and secured 25 patents during the reporting period [19] - The focus on innovation is aimed at maintaining competitive advantages and expanding into new markets, particularly in diamond functional materials [19][16] Market Expansion - The company is actively exploring new markets, including renewable energy and aerospace, while also enhancing its product offerings in existing sectors [18] - Strategic partnerships have been established to facilitate the introduction of new products and technologies, such as diamond film acoustic devices and BDD electrodes for water treatment [18]

Summary of Tungsten Industry Conference Call Industry Overview - The tungsten mining indicators in China have been tightened for two consecutive years, with the first batch of 2025 indicators decreasing by 6.5% to 58,000 tons, alongside increased efforts to combat illegal smuggling and enhance environmental inspections, aimed at controlling production and consolidating policy effects [2][4][6] - The global supply-demand relationship for tungsten is tightening, with an expected gap to continue expanding from 2026 to 2028 [2][3] - The price of tungsten concentrate in China has surged to 193,000 yuan per ton, marking a cumulative increase of 36% since the beginning of the year, reaching a historical high [2][5] Key Points and Arguments - **Export Controls**: China has implemented export controls on heavy tungsten acid, tungsten oxide, and tungsten carbide, leading to a short-term decline in export volumes. However, due to high overseas premiums, some products have seen a recovery, with ammonium paratungstate exports increasing by 70% year-on-year [2][4][6] - **Geopolitical Factors**: Conflicts between India and Pakistan have highlighted tungsten's strategic metal value, contributing to price increases [4] - **Supply Constraints**: Domestic and international supply constraints are expected to drive long-term price increases, with the market entering a bullish phase [3][4][17] - **Price Disparity**: There is a significant price disparity between domestic and overseas tungsten prices, with overseas APT prices significantly higher than domestic prices. Chinese companies can maintain growth by increasing exports to regions not subject to the 301 tariffs [2][16][20] Policy Measures - **Mining Quota Control**: China has a history of controlling tungsten mining quotas since 1991, with the first batch for 2025 set at 58,000 tons, a decrease from previous years [6] - **Export Control Implementation**: Export controls were strengthened in February 2025, leading to a drop in overall tungsten product exports, although certain downstream products like tools and blades have seen growth [22][23] - **Environmental and Smuggling Crackdown**: Increased efforts to combat illegal smuggling and enhance environmental inspections have been noted, effectively reducing over-extraction rates [6] Global Responses - **EU and US Initiatives**: Both the EU and the US have taken measures to secure critical metal supplies, with the EU setting local mining, processing, and recycling targets, and the US enhancing domestic production capabilities through legislation and international cooperation [7][9][12] - **US Tariffs**: The US has imposed a 25% tariff on Chinese tungsten concentrate and downstream products, aiming to restructure the supply chain and increase tungsten stockpiles in the fiscal years 2024-2025 [13][14][15] Future Supply and Demand Dynamics - **Supply Growth Limitations**: Global supply growth remains constrained, with emerging industries and geopolitical security demands driving long-term demand growth [17][19] - **Production Forecasts**: Global tungsten production is expected to rise from 81,000 tons in 2023 to 90,300 tons by 2028, with a compound annual growth rate of 2.57% [18][24] - **Chinese Market Drivers**: Demand in China is driven by manufacturing upgrades and large infrastructure projects, with significant growth in hard alloy tungsten material consumption [19] Price Trends and Predictions - **Short-term Price Outlook**: In the short term, the tightening supply-demand relationship and low global inventories are expected to benefit Chinese tungsten concentrate prices, potentially leading to new historical highs [24] - **Long-term Price Projections**: Long-term projections indicate that the global supply-demand gap will further widen, driving prices upward and indicating a bullish market trend [24] Investment Insights - **Company Performance Trends**: Analysis of major listed companies indicates stable profit growth driven by resource injection and downstream product price increases [26] - **Investment Selection Criteria**: Investors are advised to focus on companies with strong upstream resource development potential and robust downstream pricing capabilities, particularly those benefiting from high overseas premiums [27][28]