Zhangyuan W and XTC News
24th April, Zhangyuan Tungsten: Zhangyuan Tungsten achieved operating revenues of approximately RMB 823 mln in Q1 2023, down by 5.75% y-o-y. The rapid decline can be attributed to weaker demand, shrinking sales and falling gross profit margins during the reporting period y-o-y.
24th April, XTC: Xiamen Tungsten achieved operating revenues of RMB 8.56 bln in Q1 2023, down by 18.51% y-o-y. Net profits to shareholders of the listed company were RMB 440 mln, up by 16.05% y-o-y. The company’s business revenues from the tungsten and molybdenum sectors reached RMB 3.69 bln in Q1 2023, up by 19.08% y-o-y with total profit at RMB 566 mln, up by 57.82% y-o-y. If the impact of investment income from JV is excluded, the company’s profits for the company’s tungsten and molybdenum sector would increase by 79.49% y-o-y.
The decline in Q1 revenue can be attributed to shrinking demand for new energy raw materials during the reporting period. Furthermore, the increase in profits to shareholders of the parent company can be attributed to the improved tungsten and molybdenum sector, in particular, improving demand and fast sales of tungsten wire products during the reporting period.