CDAYENONFER(00661): A fire occurred in a unit of Yangxin Hongsheng Copper Industry.

CDAYENONFER (00661) announced that on September 14, 2024 at 5:00 pm, a fire broke out at a facility of Yongxin Hongsheng Copper Co., Ltd. in Huangshi Xingang (Logistics) Industrial Park, Hubei Province, China, causing the fire smelting furnace and blowing furnace system to stop production and enter into a heat preservation mode. The fire was extinguished at around 8:30 pm the same day, with no casualties reported. The cause of the fire is still under investigation. The group's total cathode copper production last year was 625,200 tons, and excluding the reduction in production due to the fire incident, the estimated cathode copper production for this year is 680,000 tons. However, due to a significant decline in smelting processing fees (TC/RC) for the year 2024, the Board of Directors anticipates that the reduction in production caused by the fire incident will not have a major adverse impact on the full-year operational performance in 2024. The group has purchased third-party property insurance, which covers the scope of the fire incident. Any financial or property losses resulting from the fire event will be mitigated by any compensation provided by the insurance company as per the policy. After the fire, the company has activated the fire incident impact contingency plan, established a fire investigation team, and actively carried out follow-up work related to the fire accident. The group is also conducting comprehensive safety inspections on other production facilities to eliminate all major safety hazards and risks, and is strictly implementing various safety measures. Through subsequent production adjustments, the group aims to minimize the losses caused by this incident.