Chongyi Zhangyuan Tungsten Co.,Ltd. (002378.SZ) has issued an announcement regarding significant fluctuations in its stock price. The company's stock experienced a cumulative deviation of 20.38% in its closing price over two consecutive trading days on February 26 and 27, 2026. This movement meets the criteria for abnormal stock trading volatility as defined by the Shenzhen Stock Exchange listing rules.
In its operations, the company has identified several potential risk factors. Firstly, market risk is a primary concern. Tungsten products are extensively used in machinery manufacturing, aerospace, national defense, the electronics industry, and transportation. Consequently, the broader macroeconomic environment can significantly influence market demand and the pricing of tungsten products, which in turn affects the company's operational performance.
Secondly, the company faces risks associated with fluctuations in raw material prices. With the Chinese government implementing overall control and quota production for tungsten mining, the company's self-produced tungsten concentrate is insufficient to meet its full production needs. This necessitates external purchases of tungsten concentrate or ammonium paratungstate. Significant volatility in the prices of these raw materials would directly impact production costs across various stages, thereby affecting business performance.
A third risk involves exchange rate volatility. The revenue from export business, conducted by the company and its wholly-owned subsidiary Ganzhou Aoke Tai Tool Technology Co., Ltd., is primarily settled in US dollars. Substantial fluctuations in the USD to RMB exchange rate could therefore impact the company's financial results.
Finally, credit risk is also acknowledged. While the company grants credit limits and payment terms to certain clients based on historical cooperation records and creditworthiness, there remains a risk of accounts receivable turning into bad debts. Additionally, the company may face risks from customers failing to take delivery of goods as agreed, or from suppliers failing to deliver products as contracted, both of which could adversely affect operational performance.
