The Three Gorges Water Conservancy Project plans to pre-list and transfer two subsidiary companies, both of which are manganese industry assets.

On April 2, China Three Gorges Corporation Water Conservancy (SH600116, share price 6.55 yuan, market cap 12.53B yuan) released an announcement. The company’s wholly owned subsidiary, Chongqing Wujiang Industry (Group) Co., Ltd. (hereinafter referred to as Wujiang Industry), plans to pre-sell and transfer 67% of the equity in its wholly owned subsidiary Guizhou Wuling Manganese Industry Co., Ltd. (hereinafter referred to as Wuling Manganese Industry) through the Chongqing United Property Rights Exchange.

Last year, Wuling Manganese Industry’s net profit was 14.8984 million yuan. In the first two months of this year, its net profit was 30.6463 million yuan.

In the first two months of this year, Wuling Manganese Industry’s net profit is already more than double that of last year’s full year

According to the information disclosed in the announcement, the pre-sale and transfer matter has been approved by a meeting of the board of directors and does not require submission to a shareholders’ meeting for approval. The announcement emphasized that the key terms of the transaction, including the counterparty, price, and payment method, have not been determined. This pre-sale is only for information pre-disclosure and to solicit potential transferees’ intent, and does not constitute a transaction.

Judging from the underlying asset, Wuling Manganese Industry was established in January 2011, with a registered capital of 294 million yuan. Its business scope includes the production and sales of electrolytic manganese metal, power generation, transmission, and distribution (including power supply and distribution) business, energy storage technology services, new energy technology research and development, and others.

According to unaudited financial data, as of December 31, 2025, Wuling Manganese Industry’s total assets were 695 million yuan, total liabilities were 348 million yuan, and owners’ equity was 346 million yuan. Its operating revenue for the full year of 2025 was 720 million yuan, and its net profit was 14.8984 million yuan.

As of February 28, 2026, its total assets had increased to 711 million yuan, liabilities had decreased to 334 million yuan, and owners’ equity had risen to 377 million yuan. From January to February 2026, Wuling Manganese Industry achieved operating revenue of 192 million yuan and net profit of 30.6463 million yuan.

Wuling Manganese Industry’s net profit in the first two months of 2026 is already more than double that of the full year of 2025, indicating a favorable trend of operational improvement.

Simultaneously planning to pre-sell Wuling Manganese Industry’s upstream assets

From the perspective of business structure, as an electrolytic manganese metal producer, Wuling Manganese Industry’s operating condition is closely related to factors such as manganese ore resource prices, downstream demand, and environmental protection policies. In recent years, with the rapid development of the new energy industry, manganese—one of the important components of battery materials—has seen an increase in market demand, which may provide favorable conditions for the company’s near-term performance improvement.

In its announcement, China Three Gorges Corporation Water Conservancy clearly stated that the pre-sale of this equity transfer complies with regulations on the supervision and management of state-owned assets and the company’s needs for strategic development. This is beneficial for the company to further focus on its main responsibilities, enhance its core industry’s business development capabilities, and stabilize the company’s operating performance. The company emphasized that, given that the evaluation work is still ongoing, the impact of this transaction on the company’s financial position for this year cannot be determined at this time.

What is worth noting is that at the board meeting held on the same day, China Three Gorges Corporation Water Conservancy’s board of directors also approved another asset disposal proposal—pre-selling and transferring the controlling stake in Wujiang Industry’s controlling subsidiary Guizhou Wuling Mining Industry Co., Ltd. (hereinafter referred to as Wuling Mining Industry) and the related claims. Wuling Mining Industry is an upstream enterprise of Wuling Manganese Industry and mainly engages in the mining, processing, and sales of manganese ore, but its operating condition is relatively poor.

By the end of 2025, Wuling Mining Industry’s owners’ equity was -131 million yuan; for the full year of 2025, the company’s operating revenue was 71.3893 million yuan and its net profit was -39.0239 million yuan.

As of February 28, 2026, Wuling Mining Industry’s owners’ equity was -134 million yuan; in the first two months of 2026, its operating revenue was 10.8132 million yuan, with a net loss of 3.0573 million yuan.

For investors, what needs attention is the subsequent progress of this pre-sale and transfer. According to the announcement, before the formal transfer, the company will carry out the corresponding approval procedures based on the final valuation results. Even after that, the final execution of the transaction is still uncertain. The company also clearly stated that this matter is only for information pre-disclosure, and the final result will be subject to approval by the competent authorities. Investors should pay attention to the subsequent developments and potential uncertainty risks.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Before taking action, please verify. Acting on this basis is at your own risk.

Daily Economic News