Xiamen Tungsten Co., Ltd.: Capital Expansion and Market Momentum
Xiamen Tungsten Co., Ltd. (stock code 600549) has entered a pivotal phase of capital development while benefiting from a broader bullish environment for rare‑metal and battery‑related stocks. The company’s latest disclosures and the surrounding market dynamics provide insight into how the firm is positioning itself for future growth.
1. Capital Increase to Golden Dragon Rare‑Earth
On 18 November 2025, Xiamen Tungsten’s 10th‑year board approved a motion to raise capital for its wholly‑owned subsidiary, Fujian Golden Dragon Rare‑Earth Co., Ltd. The plan involves a directed share issuance of up to 26 680 000 new shares. The issuance is fully subscribed by the existing shareholders of Golden Dragon Rare‑Earth, each maintaining their proportional ownership after the allotment.
Key procedural steps:
| Date | Event | Details |
|---|---|---|
| 19 Nov 2025 | Signing of the share‑subscription agreement | The agreement confirms that all shareholders will subscribe in line with their current holdings. |
| 12 Jan 2026 | Approval by the National Small‑Enterprise Transfer System (Securities Transfer System) | The letter of acceptance (No. 2026‑116) confirms the validity of the issuance for 12 months, subject to compliance with the company’s application documents. |
| 13 Jan 2026 | Public announcement on SSE website | The company releases a formal notice (announcement No. 临‑2026‑001) detailing the capital‑increase plan and the conditions set by the Transfer System. |
The capital injection is expected to support Golden Dragon Rare‑Earth’s expansion in rare‑metal processing, a strategic alignment with Xiamen Tungsten’s core focus on high‑value tungsten products. By reinforcing its rare‑metal subsidiary, the group seeks to secure a stronger supply chain and diversify revenue streams beyond traditional tungsten smelting.
2. Use of Idle Raised Funds for Cash‑Management Redemption
On 15 January 2026, Xiamen Tungsten issued a notice concerning the redeemable cash‑management portion of its previously raised funds. The announcement, made on the Xueqiu platform, explains that the company will use idle capital to redeem a portion of its cash‑management instruments before maturity. The move is aimed at optimizing working capital and reducing idle liquidity costs. The company’s board confirmed that the redemption will not affect its long‑term financial position or operational commitments.
3. Market Context: Rare‑Metal and Battery‑Related Strength
The week of 15 January 2026 saw a pronounced rally across several thematic sectors that directly benefit Xiamen Tungsten:
- Rare‑Metal Concept Stocks – Shares such as Jin‑Mo and Hua‑Xi surged over 6 %, while Xiamen Tungsten itself followed suit, reflecting investor enthusiasm for the sector’s growth potential.
- Battery‑Related Upswing – Lithium‑ion and lithium‑iron‑phosphate battery companies recorded gains, driven by higher raw‑material prices (e.g., lithium carbonate benchmark rose 36 % from the start of the month) and robust demand projections from the automotive and energy‑storage markets.
- Sector Performance – While AI‑application and commercial‑aerospace stocks experienced declines, the non‑ferrous metals and chemical sectors posted gains. Notably, the Shanghai Stock Exchange composite indices saw moderate upward movement, with the HSI rising 1.2 % and the CSI 300 index gaining 1.98 %.
These dynamics underscore a favorable backdrop for Xiamen Tungsten’s strategic initiatives. The company’s core product line—ammonium paratungstate, tungsten oxides, tungsten powders, and tungsten alloys—is positioned to benefit from both the rare‑metal supply chain expansion and the surging battery‑material demand.
4. Financial Snapshot
| Item | Value |
|---|---|
| Market Cap | 79.55 billion CNY |
| 52‑Week High | 51.50 CNY |
| 52‑Week Low | 17.53 CNY |
| Closing Price (13 Jan 2026) | 50.48 CNY |
| P/E Ratio | 36.69 |
The company’s share price has approached its 52‑week high, reflecting investor confidence in its capital‑expansion strategy and the sectoral tailwinds. The high P/E ratio signals market expectations for future earnings growth, likely linked to the anticipated benefits of the rare‑metal subsidiary’s expansion and the growing demand for battery‑related tungsten products.
5. Strategic Outlook
Xiamen Tungsten’s coordinated actions—capital injection into Golden Dragon Rare‑Earth, efficient use of idle funds for redemption, and alignment with rising demand for rare metals and battery components—position the company for a strengthened competitive stance. By consolidating its rare‑metal operations, the group can secure supply chains, reduce production costs, and capture higher-margin opportunities in the burgeoning electric‑vehicle and energy‑storage segments.
Moreover, the company’s diversification into battery production and real‑estate management adds resilience against commodity‑price volatility, further stabilising its revenue base. As the market continues to favor high‑tech, resource‑intensive industries, Xiamen Tungsten’s strategic moves are likely to resonate with investors seeking exposure to China’s key growth drivers in metallurgy and clean‑energy technologies.
