Caifinance News September 22 (Reporter Liang Xiangcai) The underrated kaolin company Longao shares (605086.SH) also has its moment. In the past few trading days before the plan to involve global strategy to become the second largest shareholder of Zijin Mining Group (601899.SH), there have been early abnormal fluctuations, showing a trend of increasing volume and rising prices, with a total increase of about 20% during the four consecutive positive trading days.

Tonight, Longao shares announced that the controlling shareholder Longyan Investment Development Group and the second largest shareholder Longyan Wenlv Huijin plan to transfer a total of 32.9589 million shares of the company to strategic investor Zijin Mining Group through the agreement transfer of part of the company's shares, at a transfer price of 14.93 yuan per share, accounting for 18.39% of the total share capital of the company.

Among them, Longyan Investment Development Group will transfer 12.7989 million shares, accounting for 7.14% of the total share capital of the company, Longyan Wenlv Huijin will transfer 20.16 million shares, accounting for 11.25% of the total share capital of the company. The agreement transferee is Zijin Mining Group's wholly-owned subsidiary Zijin Nantou.

In addition, according to the quadrilateral agreement, Minxixing Hangguo Investment, as the controlling shareholder of Zijin Mining Group and the concerted party of Zijin Nantou, plans to transfer its 2.8811 million shares (1.61% of the total share capital of the company) to Zijin Nantou at a transfer price of 14.93 yuan per share.

In conclusion, after the relevant transactions are completed, Zijin Nantou will hold a total of 20% of the company's shares, becoming Longao shares' new second largest shareholder.

It is worth noting that in the four trading days before this announcement was made, amidst overall market fluctuations, the company's trading conditions had already experienced abnormal fluctuations.

Among them, on September 13th, the SSE Composite Index once fell below 2700 points, Longao shares began to trade with increasing volume that day, rising nearly 3.6% intraday, closing with about 1% rise; in the following three trading days, it showed an accelerating trend of volume increase and price rise, closing on September 18th with a 10% daily limit up, on September 19th it rose over 6% intraday then slightly rose 1.55% to close, on September 20th it touched limit up intraday and closed with 6.78% rise; a total increase of nearly 20% in four trading days.

Before the news of Zijin Mining Group becoming a star shareholder of the company with a market cap of 400 billion was announced, it remains a mystery who was the 'clairvoyant' who entered first, it is still a mystery.

Since Longao shares were listed on the A-share market in April 2021, there have been few institutions paying attention. Financial Union reporters combined with Hithink Royalflush Information Network, Choice, and Xingxinchaxun and other software for inquiries, only showing single-digit brokerage research reports.

Longao shares' main business is the mining, processing, and sales of kaolin. The company is a leading enterprise in the domestic daily-use ceramic kaolin industry in terms of resource reserves, resource grade, and mining and processing scale. According to data from Hithink Royalflush Information Network, since its listing, the company's gross margin has remained stable at 60%-70%.

In terms of reserves, the company's subsidiary Longyan Donggongxi Mine area has proven total ore reserves of 49.7603 million tons. By the end of 2023, Donggongxi kaolin mine area retains resource reserves of 31.362 million tons, a large-scale high-quality kaolin deposit in China, suitable for open-pit mining.

In terms of performance, from 2021 to the first half of 2024, the company's net income was 0.084 billion yuan, 0.103 billion yuan, 0.116 billion yuan, and 0.045 billion yuan respectively, with year-on-year growth rates of 10.86%, 21.75%, 12.54%, and -18.59% respectively.