Yuguang Gold & Lead plans to raise no more than 1.84B yuan through a private placement to fund advanced rare and precious metal materials intelligent manufacturing projects and others.

Yuguang Jinyin Lead & Zinc (600531) announced late on April 3 that the company plans to issue shares to specific targets, raising total proceeds of no more than 1.84B yuan (including this figure). After deducting issuance expenses, the proceeds are intended to be used for the Advanced Rare and Precious Metal Materials Intelligent Manufacturing project, the Digital and Intelligent Upgrade and Renovation project, the Wastewater Resource Utilization project, and replenishing working capital.

Yuguang Jinyin Lead & Zinc disclosed that the issuance targets in this round include no more than 35 investors, including its controlling shareholder Yuguang Group. Yuguang Group will not participate in the market-based price bidding process for this issuance, but it commits to subscribing at the same price as other investors based on the results of the market-based bidding.

If the issuance price cannot be generated through the bidding process for this issuance, the controlling shareholder Yuguang Group will continue to participate in the subscription, and will use the issuance floor price of this issuance (80% of the average stock trading price over the 20 trading days prior to the pricing benchmark date) as the subscription price. The subscription amount will be no less than 200 million yuan, and the total number of shares to be subscribed will not exceed 30% (including this figure) of the total number of shares to be issued to specific targets in this issuance. This issuance will be implemented only after approval by relevant state-owned asset supervision authorities, approval by the company’s shareholders’ meeting, approval by the Shanghai Stock Exchange, and consent from the China Securities Regulatory Commission for registration.

According to Yuguang Jinyin Lead & Zinc, the company is the largest lead and silver producer in China. The Advanced Rare and Precious Metal Materials Intelligent Manufacturing project will replace the traditional rare and precious metal smelting and recycling process with the “new-generation green and efficient refining technology for rare and precious metals,” recycling rare and precious metals such as gold, silver, tellurium, palladium, and tin, while also developing and manufacturing precious metal catalysts and compounds. Regarding the necessity of project implementation, Yuguang Jinyin Lead & Zinc said that the rare and precious metals industry will see a deep adjustment of the industrial structure under the multiple drivers of resource constraints, technological innovation, and global competition. Green recycling, breakthroughs at the high end, and global layout will become the core directions for development. In advanced fields such as new energy, semiconductors, and aerospace, performance requirements for rare and precious metal materials continue to upgrade.

Yuguang Jinyin Lead & Zinc further noted that the company has been deeply involved in the non-ferrous metal smelting field for many years, having accumulated solid technical expertise, a well-developed talent system, and mature management experience, which provide reliable internal support for the smooth implementation of the project. After the project is successfully implemented, it is expected to deliver good economic benefits and continuously enhance the company’s market competitiveness.

For the additional capital raise for other projects, Yuguang Jinyin Lead & Zinc stated in its announcement that, as the company’s operating scale expands, working capital needed for day-to-day operations and sustained development will further increase. By using the proceeds from this issuance to specific targets to replenish working capital, the company’s financial strength will be enhanced and the company’s needs for operating scale and business growth will be met.

According to Yuguang Jinyin Lead & Zinc’s 2025 Q3 report, for the period from January to September 2025, the company achieved operating revenue of 34.85B yuan, up 20.12% year over year; profit before tax of 786 million yuan, up 13.10% year over year; and net profit attributable to shareholders of listed companies of 621 million yuan, up 11.99% year over year. Yuguang Jinyin Lead & Zinc said it will adhere to the strategic direction of “building a nationally first-class high-tech industrial group for non-ferrous metal new materials,” closely focusing on the strategic goal of building a leading industry with copper and lead as the core, accelerating the transformation toward high-end, intelligent, and green development, and ensuring the company remains at the forefront of industry development.

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