ZHIHUI MINING (02546) has announced that on March 30, 2026, after trading hours, the company (as the buyer), the seller, and Mr. Yang Laiyi entered into an agreement. The company has conditionally agreed to acquire, and the seller has conditionally agreed to sell, a total 60% equity interest in the target company, Tibet Dachuan Mining, held by the seller. The consideration is RMB 90 million in cash. Upon completion of the acquisition, the target company will become a non-wholly-owned subsidiary of the company, and its financial results will be consolidated into the group's financial statements. The group is primarily engaged in the exploration, mining, production, and sale of non-ferrous metal concentrates, including zinc, lead, copper, and silver. As disclosed in the initial public offering prospectus, one of the group's strategies is to extend and expand its business presence and market share in the Tibet Autonomous Region through investment and acquisition activities. Furthermore, the group has planned and allocated a portion of the IPO proceeds for this purpose. The target company aligns well with the business needs and corporate objectives for the following reasons: a) Its potential lead and zinc ore reserves will help increase the group's total resource reserves, not only further strengthening and supporting the group's future production growth momentum but also enhancing overall corporate value through increased ore reserves. b) The copper and molybdenum ore reserves will not only help significantly boost revenue and profit levels, benefiting from high prices of copper and molybdenum commodities, but will also expand the group's metal product portfolio and diversify risks, thereby enhancing the company's ability to withstand adverse impacts. c) It is consistent with the group's expansion strategy, as it will help extend the group's business presence to Qamdo City in the eastern part of the Tibet Autonomous Region. d) Although the mining area is still in the early stages of the production cycle and no mining operations have been conducted, its current value is relatively low, resulting in a smaller total investment amount and lower overall investment risk.
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