Hunan Silver Co., Ltd. (002716) recently announced that its fourth-largest shareholder has disclosed a plan to reduce its stake. This follows a similar announcement by the company’s second-largest shareholder a month earlier. The stock of Hunan Silver has performed strongly this year, with its price more than doubling at its peak.
The two shareholders—China Great Wall Asset Management Co., Ltd. ("Great Wall AMC") and Chenzhou State-Owned Assets Holding Group Co., Ltd. ("Chenzhou State Holdings")—acquired their shares through Hunan Silver’s 2020 debt restructuring plan.
On November 19, 2025, Hunan Silver disclosed that Great Wall AMC, holding a 5.63% stake (approximately 159 million shares), plans to sell up to 55 million shares (1.95% of total shares) via block trades and centralized bidding between December 11, 2025, and March 10, 2026.
A month earlier, Chenzhou State Holdings, the second-largest shareholder with a 7.44% stake (210 million shares), announced plans to sell up to 56.46 million shares (2% of total shares) between November 10, 2025, and February 9, 2026.
Both shareholders obtained their shares during Hunan Silver’s restructuring in November 2020. Chenzhou State Holdings invested 266.7 million yuan for 210 million shares, while Great Wall AMC paid 146.05 million yuan for 115 million shares (excluding an additional 44.06 million shares acquired via debt-for-equity swaps in February 2021).
At Hunan Silver’s closing price of 6.34 yuan on November 19, 2025, Chenzhou State Holdings’ stake was worth approximately 1.331 billion yuan—a fivefold return on its initial investment. Similarly, Great Wall AMC’s 115 million shares were valued at 729.1 million yuan, also a fivefold gain. If both shareholders sell their planned stakes at the current price, they could realize 358 million yuan and 348.7 million yuan, respectively.
Hunan Silver’s core business includes smelting and selling non-ferrous and precious metals such as silver, electrolytic lead, gold, and copper. Its subsidiary Baoshan Mining holds mining rights for lead-zinc-silver deposits in Guiyang County, Hunan, while another subsidiary, Jinhe Mining, is expanding exploration in Tibet.
Driven by rising metal prices, Hunan Silver reported strong financials for the first three quarters of 2025, with revenue surging 59.56% year-on-year to 8.594 billion yuan and net profit up 28.44% to 159 million yuan.
The stock’s strong performance—peaking at 8.28 yuan in October 2025, up over 100% from late 2024—prompted the company to raise its share buyback price ceiling from 5 yuan to 8 yuan per share. As of October 31, 2025, Hunan Silver had repurchased 17.55 million shares (0.62% of total shares) for 92.6 million yuan.
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