Yunnan Copper Industry plans to acquire a 40% stake in Liangshan Mining to enhance its positioning in the market, despite facing challenges related to profitability fluctuations.

Target Company Information

Yunnan Copper Industry Co., Ltd. (stock code: 000878) has announced that the Shenzhen Stock Exchange's Merger and Restructuring Review Committee is scheduled to hold a meeting on December 12, 2025. The committee will review the company's proposed issuance of shares to acquire assets and raise supporting funds through related transactions. The company intends to acquire a 40% stake in Liangshan Mining Co., Ltd. from its controlling shareholder, Yunnan Copper Group, with an estimated transaction price of approximately CNY 2.324 billion.

Liangshan Mining, established in 2001, primarily engages in the mining, selection, and smelting of copper metal ores, with its products including copper, iron, and sulfuric acid. In terms of performance, Liangshan Mining reported revenues of approximately CNY 8.088 billion, CNY 9.335 billion, and CNY 2.669 billion for the fiscal periods of 2023, 2024, and the first quarter of 2025, respectively. Their net profits were CNY 546 million, CNY 273 million, and CNY 98.92 million over the same periods. Notably, the company experienced a significant decline in net profit in 2024, which Yunnan Copper attributes to fluctuations in copper prices and other associated costs affecting operational performance.

Industry Overview in China

The copper industry in China is vital to the nation's economic performance, as it is deeply embedded in various sectors, including construction, electronics, and renewable energy. This in