en.Wedoany.com Reported - Jinduicheng Molybdenum Co., Ltd. (601958) plans to establish a joint venture subsidiary with Anhui Jinsha Molybdenum Industry Co., Ltd. and Anhui Jinfu Smart Energy Co., Ltd. to build a deep processing base for molybdenum-based new materials. The joint venture, located in Jinzhai Economic Development Zone, Lu'an City, Anhui Province, has a registered capital of 1 billion yuan. Jinduicheng Molybdenum will contribute 510 million yuan, holding a 51% stake, and will lead the development, construction, and operation of the joint venture.
Regarding the background of the partners, Jinsha Molybdenum is a subsidiary of Zijin Mining Group and a 34%-owned associate of Jinduicheng Molybdenum; the controlling shareholder of Jinfu Smart Energy is the State-owned Assets Supervision and Administration Commission of Jinzhai County. This investment represents Jinduicheng Molybdenum's latest move to extend its industrial chain around its core molybdenum resources. In March of this year, Jinduicheng Molybdenum completed the acquisition of a 24% equity stake in Jinsha Molybdenum for a transaction consideration of 1.731 billion yuan, increasing its shareholding from 10% to 34%. Jinsha Molybdenum holds the mining rights for the Shapinggou molybdenum mine in Jinzhai, Anhui, which is the world's largest single molybdenum deposit, with proven molybdenum metal resources of 2.1 million tons (including reserves), an average grade of 0.187%, and molybdenum metal reserves of 1.1 million tons, with an average grade of 0.2%. The Shapinggou molybdenum mine is currently under construction, and the proposed molybdenum-based new material deep processing base project aims to achieve scientific, standardized, and efficient development and utilization of the mine.
Jinduicheng Molybdenum's operating performance has been steadily improving. In 2025, the company achieved operating revenue of 13.834 billion yuan, a year-on-year increase of 1.94%; net profit of 3.155 billion yuan, a year-on-year increase of 5.77%, with the profit scale reaching a record high since listing. In the first quarter of this year, benefiting from a year-on-year increase in transaction prices of molybdenum products, the company's operating revenue was 4.158 billion yuan, up 26.67% year-on-year; net profit was 902 million yuan, up 32.99% year-on-year. Currently, Jinduicheng Molybdenum has formed a full industrial chain layout from molybdenum mining to deep metal processing. The company noted that due to its single molybdenum industry operation, its performance is relatively significantly affected by cyclical industry fluctuations, and it will accelerate the construction of a modern industrial system supported by "traditional renewal, strategic emerging expansion, and future cultivation." In 2025, Jinduicheng Molybdenum concentrated its advantages on tackling high-end businesses such as molybdenum alloys and targets, successfully entering high-end fields like molybdenum components, establishing stable supply relationships with several key domestic customers, and achieving a breakthrough from zero in strategic emerging products such as molybdenum-zirconium electrodes.
At the macro industry level, the current molybdenum market is affected by the supply-demand pattern, with prices continuing to rise and inventories at historical lows. Industry analysis suggests that rigid contraction on the supply side and structural explosion on the demand side are widening the supply-demand gap for molybdenum metal, and the market outlook may experience high-level volatility. In its 2025 annual report, Jinduicheng Molybdenum predicted that both supply and demand in the future molybdenum market are expected to grow steadily, maintaining a tight balance pattern. Looking ahead to 2026, the company plans to achieve operating revenue of 14.5 billion yuan.
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