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

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Reporter for The Paper | Wen Duo  Editor for The Paper | Zhang Yiming

On April 2, China Three Gorges 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-release the transfer of 67% of the equity in its wholly owned subsidiary, Guizhou Wuling Manganese Industry Co., Ltd. (hereinafter referred to as Wuling Manganese Industry), on 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.

According to the disclosure in the announcement, this pre-release transfer matter has been considered and approved at a board meeting and does not require submission to a shareholders’ meeting for review. The announcement emphasized that the key terms—including the current transaction counterparty, price, and payment method—have not yet been determined. This pre-release transfer is only for information pre-disclosure and to solicit potential transferees’ intent and does not constitute a transaction.

From the perspective of the transaction asset, Wuling Manganese Industry was established in January 2011, with registered capital of 294 million yuan. Its business scope includes the production and sales of electrolytic metallic manganese, power generation, transmission, supply (distribution) of electricity, energy storage technology services, and new energy technology research and development, among others.

Based on 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 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, total 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 2025, showing a favorable trend of operational improvement.

In terms of business structure, Wuling Manganese Industry, as an electrolytic metallic manganese producer, 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 used in battery materials—has seen some growth in market demand, which may provide favorable conditions for Wuling Manganese Industry’s near-term performance improvement.

In the announcement, China Three Gorges Water Conservancy clearly stated that this pre-release equity transfer complies with regulations on the supervision and administration of state-owned assets and the company’s needs for strategic development. It will help the company further focus on its primary responsibilities and core businesses, strengthen its capability to develop and operate core industries, and stabilize the company’s operating performance. The company also emphasized that, given that the appraisal work is still ongoing, the impact of this transaction on the company’s financial position for this year cannot yet be determined.

What is worth noting is that at a board meeting held on the same day, China Three Gorges Water Conservancy’s board also reviewed and approved another asset disposal proposal—its pre-release transfer of the controlling equity interest and related debts of Wujiang Industry’s controlling subsidiary, Guizhou Wuling Mining Co., Ltd. (hereinafter referred to as Wuling Mining). Wuling Mining is the upstream company 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’s owners’ equity was -131 million yuan; for full-year 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’s owners’ equity was -134 million yuan, its operating revenue for the first two months of 2026 was 10.8132 million yuan, and it recorded a net loss of 3.0573 million yuan.

For investors, what needs attention is the subsequent progress of this pre-release equity transfer. According to the announcement, before the formal transfer, the company will follow the corresponding approval procedures based on the final appraisal results. There is still uncertainty as to whether the transaction will ultimately be finalized. The company also clearly stated that this matter is only information pre-disclosure; the final outcome shall be subject to approval by the competent authorities. Investors should pay attention to subsequent progress and potential uncertainty and risk.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before using. Any risk arising from actions taken on this basis shall be borne by the party undertaking such actions.

Cover image source: The Paper Media Resource Library

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