Gaozheng Minbao plans to inject mining assets from its controlling shareholder, including an interest in Julong Copper.
On the evening of October 25, Gaozheng Minbao (stock code: 002827) announced that it had received notice from its controlling shareholder, Tibet Geological and Mineral Group Co., Ltd. (hereinafter referred to as the Geological and Mineral Group), proposing that the company acquire, through the issuance of shares, a 51% equity interest in Tibet Zilong Mining, a 51% equity interest in Tibet Ziyuan Copper, and a 100% equity interest in Tibet Shengyuan Mining, while also raising supporting funds. This transaction is expected to constitute a major asset restructuring and a related-party transaction, but will not constitute a restructuring listing. The company's shares will be suspended from trading starting from the market open on October 26, and it is expected to disclose the transaction plan and apply for resumption of trading within no more than five trading days. This is the first asset injection launched by Gaozheng Minbao since its controlling shareholder changed to the Geological and Mineral Group in September this year. For a local Tibetan company whose main business is civil explosives and blasting services, this move into copper mines and other mineral resource sectors means that its business boundaries and asset attributes may undergo fundamental reshaping.
Mining asset injection, with Julong Copper as the core highlight
According to the framework disclosed in the announcement, the three target companies to be acquired each carry different resource roles. Among them, Tibet Shengyuan Mining Co., Ltd. is to be allocated a 10.12% equity interest in Tibet Julong Copper Co., Ltd. (hereinafter referred to as Julong Copper) and a 27.00% equity interest in Tibet Ali Laguo Resources Co., Ltd.; Tibet Ziyuan Copper Co., Ltd. is to be injected with the mining rights of the Mamupu mining area. Within this asset package, the interest in Julong Copper is undoubtedly the focus of market attention. The Julong Copper Mine is located on the Tibetan Plateau and is currently the copper mine with the largest filed resource volume in China. According to previously disclosed announcements by Zijin Mining and Zangge Mining, the Julong Copper Mine has identified copper metal resources totaling 25.88 million tonnes, along with associated molybdenum metal resources of 1.672 million tonnes and silver metal resources of 15,145 tonnes. In January 2026, the second phase of the Julong Copper Mine was officially completed and put into operation, with mining and processing capacity jumping from 150,000 tonnes per day to 350,000 tonnes per day. After reaching full production, annual copper output is expected to rise from 190,000 tonnes in 2025 to approximately 300,000 to 350,000 tonnes. By then, the Julong Copper Mine will become China's largest copper mine and also the world-class super-large copper mine with the highest altitude and the lowest feed grade globally. The third phase is planned on an even grander scale. If approved and implemented, annual ore mining and processing volume will reach approximately 200 million tonnes, with annual copper output of about 600,000 tonnes, potentially making it the world's largest copper mine by mining and processing scale. According to periodic financial reports previously disclosed by Zangge Mining, in 2025, Julong Copper's copper mine sales volume was 193,700 tonnes, revenue was 16.663 billion yuan, and net profit was 9.141 billion yuan. In the first three quarters of 2026, Julong Copper achieved mineral copper output of 216,500 tonnes and sales volume of 216,500 tonnes; revenue of 24.958 billion yuan and net profit of 15.398 billion yuan. For Gaozheng Minbao, indirectly holding part of Julong Copper's interests through this acquisition means the company will share in the development returns of a top-tier domestic copper mine resource.
Performance under pressure in the first three quarters of 2026
Gaozheng Minbao listed in 2016, with main businesses covering the research, development, production, and sales of civil explosives, as well as blasting engineering services. It is the leading enterprise in the civil explosives industry in the Tibet Autonomous Region. In the first three quarters of 2026, the company achieved revenue of 1.188 billion yuan, a year-on-year decrease of 5.71%; net profit attributable to shareholders of the parent company was 81 million yuan, a year-on-year decrease of 35.45%; and net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was 74 million yuan, a year-on-year decrease of 34.54%. The company attributed the profit decline to three aspects: lower sales prices of civil explosives, increased asset amortization from the acquisition of Heilongjiang Gaojiang Company at the beginning of the year, and a decrease in government subsidies compared with the same period last year. Among these, net profit attributable to shareholders of the parent company in the third quarter alone was 48.9181 million yuan, a year-on-year decline of 13.95%. The decline narrowed compared with the first two quarters, but overall profit pressure has not yet been relieved. It is precisely against the backdrop of performance pressure that the change in controlling shareholder and the subsequent asset injection are noteworthy. In September 2026, the State-owned Assets Supervision and Administration Commission of the Tibet Autonomous Region transferred, without compensation, 34% of the state-owned shares held by Zangjian Group in Gaozheng Minbao to the Geological and Mineral Group. The company's controlling shareholder thus changed to the Geological and Mineral Group, while the actual controller remained unchanged. As a core platform in Tibet's geological and mineral sector, the Geological and Mineral Group holds multiple mining interests including copper and lithium. This injection of equity interests related to Zilong Mining, Ziyuan Copper, and Shengyuan Mining into the listed company can be seen both as fulfilling earlier market expectations for asset integration and as reflecting that, under the framework of the new controlling shareholder, Gaozheng Minbao has been given a role beyond its main civil explosives business. From the perspective of the transaction structure, the arrangement of purchasing assets through share issuance and raising supporting funds, on the one hand, avoids cash outflow from the listed company, and on the other hand, enables the Geological and Mineral Group to further consolidate its shareholding ratio in the listed company after the restructuring. However, it should be noted that what has been disclosed so far is only the basic transaction information. Key details such as the audit and evaluation results of the target assets, the final transaction price, and the scale and use of supporting funds still await the subsequent plan. As of before the trading suspension (October 23), Gaozheng Minbao was quoted at 51.80 yuan per share, up 6.41%, with a total market value of 14.35 billion yuan.
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