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Caixin Media August 22nd news (by reporter Liang Xiangcai) Benefiting from the high prosperity of tungsten prices, Xiamen Tungsten (600549.SH) achieved reduced revenue but increased profits in H1; Caixin Media learned from the company's securities department in the capacity of an investor, "the profit contribution from the tungsten sector was the highest".

Tonight, Xiamen Tungsten released the financial report for the first half of 2024, with H1 achieving a total operating income of 17.162 billion yuan, a decrease of 8.37% year-on-year; net profit attributable to the parent company was 1.017 billion yuan, an increase of 28.47% year-on-year.

The announcement shows that in the company's tungsten and molybdenum business, revenue in the first half of the year was 8.781 billion yuan, a year-on-year increase of 10.98%; the total profit was 1.427 billion yuan, a year-on-year increase of 29.50%. Among them, the deep-processed product of fine tungsten wire maintained rapid growth, achieving a total sales volume of 74.3 billion meters in the first half of the year, a year-on-year increase of 119%, and a 62% year-on-year increase in sales revenue.

In the aspect of new energy materials business, the company's revenue in the first half of the year was 6.3 billion yuan, a year-on-year decrease of 22.43%; the total profit was 0.246 billion yuan, a year-on-year decrease of 10.06%.

In the rare earth business, the company's revenue in the first half of the year was 2.054 billion yuan, a year-on-year decrease of 21.48%; the total profit was 0.117 billion yuan, a year-on-year decrease of 23.50%.

Since the beginning of this year, the price of tungsten has fluctuated greatly. Industry data shows that at the end of May, the price of black tungsten concentrate (grade ≥65%) (referred to as "tungsten price") once reached 0.158 million yuan/ton, hitting a new high in nearly ten years; thereafter, the tungsten price turned downwards, dropping below 0.13 million yuan/ton at the end of July and then rising again. As of August 22nd, the tungsten price is 0.1385 million yuan/ton, with a nearly 7% increase during the month.

After the tungsten price rebounded, downstream tungsten companies followed suit.

According to the statistics of Zhongyang Tungsten Online, in the second half of August, the long-term quotation of chongyi zhangyuan tungsten (002378.SZ) for black tungsten concentrate (WO3 ≥ 55%) was 1.345 million yuan/metric ton, an increase of 4,500 yuan/metric ton from the first half of the month, up 3.5%; a monthly increase of 5.1%. The quotation for Jiangxi Tungsten Group's national standard first-class black tungsten concentrate was 1.355 million yuan/metric ton, an increase of 3,500 yuan/metric ton from the first half of the month, up 2.65%; a monthly increase of 5.04%. The procurement price of ammonium paratungstate for xiamen tungsten was 0.2 million yuan/ton, an increase of 4,000 yuan/ton from the first half of the month, up 2%; a monthly increase of 1.5%. The 55% grade or above black tungsten concentrate from guangdong xianglu tungsten (002842.SZ) in August was 1.335 million yuan/metric ton, an increase of 3,500 yuan/metric ton from July, up 2.7%.

It is worth noting that the Ministry of Natural Resources recently issued a notice regarding the total tungsten mining control target for 2024, which shows a total mining control target of 114,000 metric tons, an increase of 3,000 metric tons compared to last year. Analysts explained to Caixin reporters that this may be to alleviate the current shortage of tungsten raw materials.

The above notice mentioned that by the end of December 2025, except for converted exploration rights and agreements for deep and upper mining rights, registration of tungsten mining rights will be suspended. This means that the degree of control over upstream tungsten resources in the country will be further deepened.