Shenghe Resources Holding Co.,Ltd. (600392.SH) has announced the latest developments in its acquisition of Peak Rare Earths Limited (referred to as "Peak Company").
On September 30, Shenghe Resources announced that its wholly-owned subsidiary, Shenghe Resources (Singapore) Pte Ltd (hereinafter referred to as "Shenghe Singapore"), has completed the payment of the acquisition consideration and equity transfer for the 100% stake in Peak Company. Moving forward, the company will strictly comply with national laws and regulations to advance subsequent work in an orderly manner.
Previously, on May 14, Shenghe Resources announced that its wholly-owned subsidiary Ganzhou Chenguang Rare Earth New Materials Co., Ltd. (referred to as "Chenguang Rare Earth") planned to acquire 100% equity of Peak Company through a scheme of arrangement.
The total consideration for this acquisition was AUD 158 million, equivalent to approximately RMB 742.6 million. This transaction does not constitute a related party transaction nor does it constitute a major asset restructuring.
In July 2025, to better advance the project progress, Chenguang Rare Earth and Shenghe Singapore reached an agreement with Peak Company through friendly consultation to change the implementing entity for the cooperation with Peak Company from Chenguang Rare Earth to Shenghe Singapore.
On September 4, 2025, the company convened the fifth meeting of the ninth board of directors, which reviewed and approved the "Proposal on Adjusting the Transaction Price for the Acquisition of Peak Rare Earths Limited Equity." The board agreed to adjust the valuation of Peak Company's 100% equity from AUD 158 million (equivalent to approximately RMB 742.6 million) to AUD 195 million (equivalent to approximately RMB 916.5 million). The price increase was approximately 23%. The announcement at that time stated that since the signing of the relevant agreements, significant changes have occurred in domestic and international rare earth markets, with sustained and substantial increases in market prices of major rare earth products.
According to available information, the target company Peak Company is an Australian listed company established in 2015, headquartered in Perth, Western Australia. Its main business involves rare earth exploration, development, and production. Its core project is the Ngualla rare earth project located in Tanzania, which has obtained a special mining license.
It is noted that Peak Company is currently in a loss-making position. In 2023 and 2024, the company recorded zero revenue, with net losses of RMB 53.89 million and RMB 48.95 million respectively. As of the end of 2024, its total assets decreased from RMB 436.8 million at the end of 2023 to RMB 402.8 million.
Shenghe Resources Holding Co.,Ltd. is primarily engaged in rare earth mining and processing, smelting and separation, metal processing, rare earth waste recycling, and zircon-titanium ore beneficiation business, with headquarters in Chengdu, Sichuan. The company currently has two main business segments: rare earth and zircon-titanium. The rare earth business has formed a relatively complete industrial chain from ore processing, smelting and separation to deep processing, achieving dual deployment both domestically and internationally.
In February 2022, Shenghe Resources acquired a 19.86% stake in Peak Company through its wholly-owned subsidiary Shenghe Singapore, with a total acquisition amount of RMB 179 million.
This acquisition of Peak Company's 100% equity through Chenguang Rare Earth aims to secure development rights for the Ngualla rare earth mine project and further strengthen the company's resource foundation.
Financial data shows that in 2024, due to price fluctuations in major rare earth products, the profitability of companies in the rare earth industry was generally under pressure. According to the 2024 annual report, Shenghe Resources achieved total revenue of RMB 11.371 billion, a year-on-year decrease of 36.39%; net profit attributable to parent company was RMB 207 million, a year-on-year decrease of 37.73%.
It is worth noting that on September 29, Shenghe Resources issued an "Announcement on Office Address Change." The announcement shows that the company's office address has recently changed from "7th Floor, Chengnan Tianfu, No. 66 Shenghe 1st Road, High-tech Zone, Chengdu" to "No. 399 Yiteng Road, Shuangliu District, Chengdu," with the postal code also changing from "610041" to "610200."
The company's new office address is No. 399 Yiteng Road, Shuangliu District, Chengdu, with postal code 610200. It is worth noting that except for the above changes, the company's website, investor consultation telephone, fax, email, and registered address remain unchanged.
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