JIAXIN INTL RES successfully listed on the main board of the Hong Kong Stock Exchange today, with CICC serving as the sole sponsor.

JIAXIN INTL RES is a tungsten mining company based in Kazakhstan, focusing on developing the group's Bakyrta tungsten mine (Bakyrta tungsten mine project). According to Frost & Sullivan data, as of December 31, 2024, it is the world's largest open-pit tungsten mine by tungsten trioxide (WO3) mineral resource volume. According to Frost & Sullivan data, as of December 31, 2024, the group's Bakyrta tungsten mine is also the world's fourth-largest tungsten mine by WO3 mineral resource volume (including both open-pit and underground tungsten mines), with the world's largest designed tungsten mining capacity among individual tungsten mines.

JIAXIN INTL RES's Hong Kong IPO introduced cornerstone investors including China Cinda (Hong Kong) Asset Management Limited ("Cinda", a wholly-owned subsidiary of China Cinda (01359.HK)), Singapore Luyin Trading Limited ("Luyin", a wholly-owned subsidiary of state-owned enterprise Shandong Zhaojin Group Co., Ltd.), GF Fund Management and GF International Asset Management (collectively "GF Fund"), Fuguo Hong Kong and Fuguo Fund, and Zhengxin Group Investment Limited ("Zhengxin").

Today at market opening, JIAXIN INTL RES surged 132.60% to HK$25.40 per share, with a market capitalization of HK$11.156 billion.

The prospectus shows that JIAXIN INTL RES focuses on developing the Bakyrta tungsten mine. According to Frost & Sullivan data, as of December 31, 2024, it is the world's largest open-pit tungsten mine by tungsten trioxide (WO3) mineral resource volume.

According to Frost & Sullivan data, as of the same date, the company's Bakyrta tungsten mine is also the world's fourth-largest tungsten mine by WO3 mineral resource volume (including both open-pit and underground tungsten mines), with the world's largest designed tungsten mining capacity among individual tungsten mines.

During the track record period, JIAXIN INTL RES primarily focused on preparing for commercial production of the Bakyrta tungsten mine project. The project entered trial production in November 2024 to test and fine-tune processing procedures. Commercial production is set to begin in the second quarter of 2025, with a target annual mining and mineral processing capacity of 3.3 million tons of tungsten ore in 2025.

According to the independent technical report, as of December 31, 2024, based on JORC rules, the estimated mineral resource of the Bakyrta tungsten mine is approximately 109.5 million tons of ore containing 0.211% WO3 (equivalent to 231,500 tons of WO3), including 97.6 million tons of indicated resources (0.21% WO3) and 11.9 million tons of inferred resources (0.228% WO3). As of the same date, according to JORC guidelines, the Bakyrta tungsten mine has proven ore reserves of 70.3 million tons of ore with an average grade of 0.206% WO3, equivalent to 144,500 tons of WO3.

The company holds mining rights for the Bakyrta tungsten mine (rights to extract tungsten ore) under subsoil use contracts entered into with relevant authorities in Kazakhstan. The mining area specified in the mining contract is 1.16 square kilometers, allowing extraction to a maximum depth of 300 meters below ground surface, with a term from June 2, 2015 to June 2, 2040, for a period of 25 years.

Financially, the company recorded annual losses of HK$94.45 million, HK$80.129 million, and HK$177 million in 2022, 2023, and 2024 respectively, with cumulative losses of HK$350 million over three years.

The company began commercial production in April 2025 and started generating revenue of HK$126 million for the six months ended June 30, 2025, from sales of tungsten concentrate. The company generated gross profit of HK$18 million for the six months ended June 30, 2025, representing a gross margin of 14.2%.

According to the Frost & Sullivan report, global tungsten reserves increased from approximately 3.3 million tons in 2018 to 4.4 million tons in 2023, with a compound annual growth rate of 5.9%. In 2023, global tungsten production was 78,000 tons, while global tungsten consumption was approximately 124,100 tons, creating a gap of 46,100 tons, highlighting the scarcity of tungsten resources and strong demand. Looking ahead, with increasing tungsten usage in rapidly growing downstream markets, such as the photovoltaic (PV) industry which also consumes large amounts of tungsten, tungsten consumption is expected to reach 151,100 tons in 2028, with a compound annual growth rate of 4%.

Currently, China is the world's largest tungsten resource country, primarily possessing two types: black tungsten ore (wolframite and ferberite) and white tungsten ore (scheelite). According to Frost & Sullivan data, in 2024, China's tungsten resource reserves were 2.4 million tons, accounting for over 50% of global reserves, and its tungsten production also leads globally.

Since China's tungsten production accounts for over 80% of global tungsten production in 2024, tungsten output largely depends on China's production. To protect national reserves, China's Ministry of Natural Resources issues annual tungsten mining quotas each year. These quotas have been in effect since 2002. China's 2024 tungsten mining quota was set at 114,000 tons of tungsten concentrate. Due to the Chinese government's quota restrictions on tungsten concentrate products, combined with relatively low utilization rates in previous years, China's tungsten production decreased from 69,000 tons in 2019 to 67,000 tons in 2024, with a compound annual growth rate of -0.6%.

According to a 2024 notice from China's Ministry of Natural Resources, the first batch of total quota restrictions for 2025 (65% tungsten trioxide content) was 58,000 tons, a year-on-year decrease of 6.5%. Therefore, the market expects domestic tungsten production to reach 54,500 tons in 2029, with a compound annual growth rate of -0.4% from 2024 to 2029.

China's tungsten consumption increased from 47,300 tons in 2019 to 55,300 tons in 2024, with a compound annual growth rate of 3.2%. Looking ahead, with continuous technological development and demand for tungsten (particularly in cemented carbide products), China's tungsten consumption is expected to reach 65,500 tons in 2029, with a compound annual growth rate of 3.4%.

As a major tungsten reserve and production country, China's tungsten consumption is lower than its production because China exports tungsten products to multiple other countries. China implements tungsten export restriction policies aimed at protecting domestic tungsten resources and ensuring their sustainable supply.

In recent years, with the gradual depletion of China's tungsten resources and increased environmental awareness, the Chinese government has adopted a series of measures to limit tungsten exports. The implementation of these policies and measures will have a significant impact on the global tungsten market. Due to China's restrictions on tungsten exports and the large gap between tungsten production and consumption, Kazakhstan's tungsten export demand is likely to experience strong growth.

JIAXIN INTL RES has completed several rounds of pre-IPO investment since 2018. The company's investors include Jiangxi Copper Hong Kong, China Railway Construction Investment and China-Turkey Hong Kong.

JIAXIN INTL RES plans to use the net proceeds from the global offering for the following purposes: approximately 55.0% will be allocated for capital costs of the Bakyrta tungsten mine project development; approximately 10.0% will be used to develop the group's ammonium paratungstate (APT) production capacity; approximately 25.0% will be used to repay the principal amount and accrued interest of part of the group's Euro-denominated bank loans, which the group has primarily used to finance the construction and development of the group's Bakyrta tungsten mine project; and approximately 10.0% will be allocated for working capital and other general corporate purposes.