Despite announcing a plan to invest up to 18.5 billion yuan in wealth management products, Sichuan Anning Iron and Titanium Co., Ltd. (002978) saw its stock price decline, accompanied by outflows of major capital. The company, known as the "Panxi Mining King," is facing a noticeable gap in market confidence.
On March 16, Anning Iron and Titanium disclosed that the company and its subsidiaries intend to utilize a maximum of 18.5 billion yuan in idle funds for low-risk cash management. The move aims to enhance capital efficiency and generate additional returns for shareholders. However, the capital market responded negatively. By the close of trading on March 17, the company’s share price fell by 2.51% to 35.72 yuan per share, with a total market capitalization of approximately 16.859 billion yuan.
The cash management plan consists of two parts: up to 5.5 billion yuan from idle raised funds and up to 13 billion yuan from idle own capital. The investment period will not exceed 12 months from the date of board approval, and the funds can be reused within the approved limit and timeframe.
Anning Iron and Titanium explained that the initiative is intended to improve the utilization efficiency of raised capital and make reasonable use of idle funds. The company emphasized that the cash management activities will not affect normal operations or the implementation of fundraising projects. Proceeds from the management of idle raised funds will be prioritized to cover any shortfalls in project investment, while returns from own capital will be allocated to daily operational liquidity needs. This marks the second consecutive year the company has implemented such a plan. In March 2025, it was authorized to use up to 12 billion yuan in idle raised funds and 25 billion yuan in idle own capital for cash management, with all principal amounts fully repaid within the authorized period.
Despite its title as the "Panxi Mining King," Anning Iron and Titanium is grappling with a challenging financial performance characterized by increasing revenue but declining profits. In the first three quarters of 2025, the company reported revenue of 16.07 billion yuan, an increase of 18.19% year-on-year. However, net profit attributable to shareholders dropped by 7.28% to 633 million yuan, and net profit after deducting non-recurring items fell by 6.13% to 642 million yuan. This trend is not new. From 2022 to 2024, the company’s revenue declined from 19.96 billion yuan to 18.57 billion yuan, while net profit attributable to shareholders decreased from 1.095 billion yuan to 852 million yuan, marking three consecutive years of negative growth.
Notably, despite lackluster earnings, Anning Iron and Titanium has maintained a generous dividend policy. Between 2022 and 2024, the company distributed cash dividends of 441 million yuan, 401 million yuan, and 436 million yuan, respectively, with dividend payout ratios reaching 40.29%, 42.77%, and 51.15%. This has positioned it as a high-dividend payer in the A-share market.
The combination of large-scale cash management, substantial dividend payments, falling stock price, and declining profitability has sparked discussions within the industry. Observers are questioning why the "Panxi Mining King," with ample financial resources, has yet to translate its capital strength into sustainable growth momentum.
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