According to a October 18 evening announcement, Shenghe Resources Holding Co.,Ltd. (600392) plans to transfer partial equity in its rare earth smelting and separation business to China Rare Earth Group Industrial Development Co., Ltd. (hereinafter referred to as China Rare Earth Development), in order to achieve equity cooperation in the rare earth smelting and separation business.
China Rare Earth Development is a wholly-owned subsidiary of China Rare Earth Group Co., Ltd. (hereinafter referred to as China Rare Earth Group), which is a diversified central enterprise directly supervised by the State-owned Assets Supervision and Administration Commission of the State Council. It is mainly engaged in rare earth resource development, smelting and separation, deep processing, and import and export trade of rare earth products.
As of the close on October 16, Shenghe Resources Holding Co.,Ltd. (600392) share price closed at 17.39 yuan per share, down 3.12%, with a total market value of 30.48 billion yuan.
Plan to Transfer Controlling Rights of Four Subsidiaries
The announcement shows that Shenghe Resources Holding Co.,Ltd. (600392) intends to carry out equity cooperation with China Rare Earth Development, planning to transfer the controlling rights of four subsidiaries engaged in rare earth smelting and separation business to China Rare Earth Development.
Specifically, Shenghe Resources Holding Co.,Ltd. (600392) plans to divest the non-rare earth smelting and separation business of its controlling subsidiary Leshan Shenghe Rare Earth Co., Ltd. (hereinafter referred to as Leshan Shenghe) to Shenghe Resources or other wholly-owned subsidiaries of Shenghe Resources. After completing the divestiture of Leshan Shenghe's non-rare earth smelting and separation business, Shenghe Resources Holding Co.,Ltd. (600392) plans to transfer 51% of Leshan Shenghe's equity to China Rare Earth Development.
At the same time, three subsidiaries under Shenghe Resources Holding Co.,Ltd. (600392)'s controlling subsidiary Ganzhou Chenguang Rare Earth New Materials Co., Ltd. are engaged in rare earth smelting and separation business, namely Quannan County Xinziyuan Rare Earth Co., Ltd., Jiangyin Jiahua New Materials Resources Co., Ltd., and Zibo Jiahua New Materials Resources Co., Ltd. Shenghe Resources Holding Co.,Ltd. (600392) plans to transfer 51% of the equity in these three companies held by Ganzhou Chenguang Rare Earth New Materials Co., Ltd. to China Rare Earth Development.
According to a report issued by a third-party institution, as of June 30, 2026, the estimated value of the partial equity of the four subsidiaries to be transferred by Shenghe Resources Holding Co.,Ltd. (600392) is between 3.25 billion yuan and 3.55 billion yuan, with the final price expected to be 3.468 billion yuan.
Collaborating with China Rare Earth Group Through Equity Cooperation
Shenghe Resources Holding Co.,Ltd. (600392) announced that after completing this equity transfer, the company will collaborate with China Rare Earth Development to utilize resource and industrial advantages, fully guarantee the production quotas and raw material supply of the four companies engaged in rare earth smelting and separation business, and strive to expand production scale.
Shenghe Resources Holding Co.,Ltd. (600392) has businesses including rare earth mines, rare earth smelting and separation, rare earth metal processing, rare earth deep processing, rare earth waste recycling, and zirconium-titanium ore mining and processing, among which rare earth smelting and separation business is an important link in the rare earth industry chain. Currently, Shenghe Resources Holding Co.,Ltd. (600392) has rare earth smelting and separation bases in Sichuan, Jiangxi, Shandong, and Jiangsu, capable of processing various types of raw materials such as bastnasite, ion-adsorbed rare earth ores, monazite chloride flakes, and neodymium-iron-boron waste.
China is the world's largest producer of rare earth raw materials and holds about 90% of the global market share in rare earth smelting, separation, and metal processing, but implements a total volume control system for rare earth mining and smelting separation.
Shenghe Resources Holding Co.,Ltd. (600392) announced that China Rare Earth Group has resource and industrial advantages. Through this equity transfer, the company introduces China Rare Earth Development to hold shares in the four rare earth smelting and separation enterprises, enabling equity cooperation between the two parties in the smelting and separation business.
According to its official website, China Rare Earth Group is a leading comprehensive and international large-scale rare earth industry group in China and internationally, with significant resource reserve advantages, integrating heavy rare earths and light rare earths. Currently, China Rare Earth Group has laid out and built a complete rare earth industry chain integrating rare earth mining and dressing, smelting and separation, deep processing, functional materials, and downstream applications in major domestic resource areas, and is comprehensively expanding international rare earth resource development and industrial cooperation.
Comments