Huaci Shares opened limit-up on September 18, sealing the board for a fourth consecutive trading day. The stock closed at 21.87 yuan per share, up 10.01 percent, with more than 40,000 lots locked on the buy side at the limit. Full-day turnover reached 9.3 percent, with trading volume of 496 million yuan and a latest market value of 6.385 billion yuan. On the evening of September 16, Huaci Shares issued an unusual-movement announcement saying the recent short-term share price rise was mainly driven by market speculation over its zirconia business. The company said the risk of concept-driven speculation is significant, its fundamentals have not changed, and it reminded investors to be aware of share-price speculation risks. The company said that in the first half of this year, its new ceramic materials business containing zirconia achieved operating revenue of only 6.64 million yuan, accounting for 1.15 percent of total operating revenue. The segment remains very small in scale. Zirconia products are mainly used in the lithium battery industry, and the company has not raised prices for these products. Powder verification cycles are long, and whether the products can pass verification with new customers is highly uncertain. In terms of performance, the company posted first-half operating revenue of 576 million yuan, down 20.77 percent year on year, and non-GAAP net profit attributable to the parent of 75.7673 million yuan, down 31.42 percent year on year. The declines were mainly due to the European Union anti-dumping tariff rising from 18.3 percent to 79 percent, the export tax rebate rate falling from 9 percent to zero, and the renminbi appreciating more than 4 percent since the start of the year. The company also reminded investors that the issue price for its 2025 private placement of A-shares to specific investors was 17.46 yuan, with a lock-up expiry date of November 11, 2026. The expected unlocked volume is 38.37 million shares, accounting for 13.14 percent of total share capital, and relevant shareholders may reduce their holdings after the lock-up expires.
Hunan Hualian China Industry Co. Ltd.EU anti-dumping tariff rose from 18.3% to 79% and export tax rebate fell to zero, driving H1 revenue down 20.77% and non-GAAP profit down 31.42%.
