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[SMM News] Zhangyuan Tungsten Industry has been trading for three consecutive days and today issued an announcement on abnormal stock fluctuations.
Sep 14,2020 11:44CST
translation
Source:SMM
This morning, Zhangyuan tungsten industry rose rapidly after the opening, and closed at 6.48 yuan per share at noon, an increase of 10.02%.
The content below was translated by Tencent automatically for reference.

SMM9 March 14: this morning, Zhangyuan tungsten industry rose rapidly after the opening of trading. As of noon, it closed at 6.48 yuan per share, an increase of 10.02%.

Company trends

Today, the company issued a notice on the abnormal fluctuation of the stock, saying that in view of the abnormal fluctuation of the company's stock, the company has checked the relevant matters, and the relevant situation is now explained as follows:

After verification, there is no need to correct or supplement the information disclosed by the company in the previous period.

After verification, the company has not found that the recent public media reports may or have had a greater impact on the company's stock trading price of undisclosed material information;

After verification, the company's current operating situation is normal, and no significant changes have taken place in the company's recent operating situation and internal and external operating environment.

After verification, the company, the controlling shareholder and the actual controller do not have any major matters about the company that should be disclosed but not disclosed, nor are there any major matters that are in the planning stage;

After verification, the controlling shareholder and the actual controller of the company did not buy or sell the shares of the company during the abnormal fluctuation of the company's stock trading;

The company held the 21st meeting of the fourth session of the board of directors on February 5, 2020, and examined and approved the "Plan on repurchasing some Public shares", which agreed that the company should use its own funds to buy back the company's shares in a centralized competitive price transaction. For the implementation of equity incentives, the repurchase amount shall not be less than RMB 35 million yuan (inclusive) and not more than RMB 70 million yuan (inclusive), and the repurchase price shall not exceed RMB 6.00 yuan per share. The time limit for repurchasing shares shall be within 12 months from the date when the board of directors of the company deliberates and approves the share repurchase plan.

After verification, the company did not buy back shares from September 1, 2020 to September 11, 2020. As of September 11, 2020, the company has repurchased 3941400 shares through the buyback special securities account, accounting for 0.43% of the company's total share capital, with a total transaction amount of 16679249 yuan (including transaction fees).

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Recently, Zhangyuan Tungsten Industry issued an announcement about the company and its subsidiaries receiving government subsidies, according to the announcement. Chongyi Zhangyuan Tungsten Industry Co., Ltd., Ganzhou Aoketai tool Technology Co., Ltd., and Zhangyuan International Science and Technology Innovation (Shenzhen) Co., Ltd., from January 1, 2020 to the date of disclosure of this announcement, have received a total of 29.5013 million yuan in government subsidies related to revenue. Account for 10.23% of the audited net profits of shareholders of listed companies in the most recent fiscal year, and payments have been actually received at present. The details are as follows:

Progress of the company's share buyback: the company did not repurchase shares from August 1 to August 31, 2020. As of August 31, 2020, the company has accumulated 3941400 shares through the buyback special securities account, accounting for 0.43% of the company's total share capital, of which the highest transaction price is 4.86 yuan per share and the lowest transaction price is 4.03 yuan per share. the total transaction amount is 16679249 yuan (including transaction fees).

Industry trends

In the first half of 2020, affected by the COVID-19 epidemic, the international economic and trade situation was grim, and the global economy declined sharply. In the first quarter, strict prevention and control measures were taken after the outbreak of the domestic epidemic, and enterprises delayed the resumption of work and production after the Spring Festival; in the second quarter, the overseas epidemic spread, and the domestic novel coronavirus epidemic was effectively controlled step by step, while taking into account the prevention and control of the epidemic, the state introduced various policies and measures to help economic development, and the domestic economy gradually recovered. During the reporting period, under the influence of novel coronavirus's epidemic situation and sluggish market demand, China's tungsten industry showed an overall downward trend, with product market prices declining compared with the same period last year. The average price of tungsten concentrate (WO3 ≥ 65%) was 84,300 yuan per ton, down 8.67% from the same period last year, and the market prices of tungsten concentrate, tungsten smelting products and deeply processed products all decreased to varying degrees.

According to SMM, the price of tungsten series products has been rising since July this year, starting from the tungsten concentrate at the raw material end, and gradually transmitted to the downstream powder, tungsten carbide, ammonium paratungstate (APT) and other products, realizing the improvement of the overall price level of the whole industry chain.

[SMM Analysis] is the rising consumption of tungsten products by many enterprises an internal driving force this month?

 

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