Yuguang Gold & Lead Resumes Private Placement, Plans to Raise 1.84B Yuan Mainly for Rare and Precious Metal Material Intelligent Manufacturing | Quick Read Announcement

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Cailian Press April 3 (Reporter Liang Xiangcai) After terminating its private placement eight months ago, Henan Yuguang Gold & Lead (600531.SH) plans to initiate a new round of private placement financing of no more than RMB 1.839 billion.

This evening, Henan Yuguang Gold & Lead disclosed its 2026 annual stock issuance plan to specific targets. The company plans to raise a total amount of no more than RMB 1.839 billion.

Of the funds raised, RMB 1.16 billion will be used for the “advanced rare and precious metal materials intelligent manufacturing project.” The project’s total investment is RMB 2.406 billion. It will adopt the “new-generation green and efficient refining technology for rare and precious metals” to recover rare and precious metals including gold, silver, tellurium, palladium, and tin, and to develop catalysts and compounds for precious metals. In addition, RMB 0.5 billion will be used for a digital and intelligent upgrade and transformation, RMB 0.79 billion for a waste water resource utilization project, and RMB 0.55 billion for supplementing working capital.

This issuance will adopt a bidding mechanism. The pricing benchmark date is the first day of the issuance period, and the issue price will be no less than 80% of the average trading price of the company’s shares for the 20 trading days prior to the pricing benchmark date. Henan Yuguang Group will not participate in the bidding, but will commit to accepting the bidding results and subscribing for shares at the same price.

If an issue price cannot be determined through bidding, Henan Yuguang Group will subscribe at the issuance floor price. The subscription amount will be no less than RMB 200 million, and the total number of shares subscribed will not exceed 30% of the total number of shares of the issuance. The total number of issuance targets will be no more than 35. Henan Yuguang Group’s lock-up period for the subscribed shares will be 18 months, and the lock-up period for other targets will be 6 months.

From an industry background perspective, according to data from the China Gold Association, in 2024 domestic gold smelting capacity in China reached 5,350 tons per year, while raw gold output was only 365.8 tons, meaning the supply of raw materials is seriously insufficient. The external dependency ratio for rare precious metals such as palladium exceeds 80%. The company states that the project aims to ensure the security of rare and precious metal resource supply and to align with the trends toward green and intelligent transformation.

The financials show that as of the end of September 2025, the company’s asset-liability ratio was 73.83%, at a high level in recent years, and net operating cash flow was -RMB 960 million. The company also states that using this private placement to supplement working capital will help reduce repayment risk.

Before this issuance, the controlling shareholder Henan Yuguang Group holds 26.69% of the shares. After the issuance, the expected shareholding proportion will remain at above 25%. The actual controller will remain the State-owned Assets Supervision and Administration Bureau of the Jiyuan Production-Urban Integration Demonstration Zone, and there will be no change in control.

It needs to be clarified that this issuance can be implemented only after receiving approval from the state-owned assets regulatory department, approval by the company’s shareholders’ meeting, approval by the Shanghai Stock Exchange, and registration with the China Securities Regulatory Commission.

It is also worth noting that in August 2025, the company terminated its private placement plan to raise no more than RMB 400 million from its controlling shareholder Henan Yuguang Group. The plan originally intended that, after deducting relevant issuance expenses, all proceeds would be used to supplement working capital and repay bank loans.