Shengda Resources (000603.SZ) plans to spend 614 million yuan to acquire the remaining 33% equity of Jinshan Mining, strengthening its core business of developing precious metals.

Shengda Resources (000603.SZ) announced that the company plans to acquire 33% equity of Inner Mongolia Jinshan Mining Co., Ltd. (referred to as "Jinshan Mining" or the "target company") held by Gansu Shengda Group Co., Ltd. (referred to as "Shengda Group" or the "counterparty") for 614 million yuan in cash. After the completion of this equity transfer, the company's ownership of Jinshan Mining will increase from 67% to 100%, making Jinshan Mining a wholly-owned subsidiary of the company. The company's consolidated financial statements will not change as a result of this transaction. The "Equity Transfer Agreement" for this transaction includes performance commitments: Shengda Group commits that the cumulative net profit of Jinshan Mining for the years 2025, 2026, and 2027 will not be less than 470 million yuan. It is reported that Jinshan Mining is mainly engaged in the exploration and selection of silver mines, with main products being silver and gold ingots. The main raw material for production in Jinshan Mining is self-mined ore, and the production mode is planned production on a production line. The main sales channels for products are smelters and metal processing enterprises, or sales to traders, who then sell to smelters. Silver and gold ingot products can also be traded directly on the Shanghai Futures Exchange and the Shanghai Gold Exchange. After the production of silver and gold ingots by Jinshan Mining is completed, the company determines the specific sales timing based on macro environmental changes and future expectations, with sales prices referencing metal prices on the Shanghai Gold Exchange, Shanghai Nonferrous Metal Network, and China Silver Network. As of the date of this announcement, Jinshan Mining owns one mining right and one exploration right in Bayannur Right Banner, Inner Mongolia Autonomous Region, which are the core operating assets of Jinshan Mining. The Eren Tolgoi mine area of Jinshan Mining is a large silver and gold metal mine with abundant silver and gold metal resources. After this transaction is completed, the company's equity in silver and gold metal resources will be further enhanced, which will benefit the increase of the company's production scale and profitability, in line with the company's strategic plan to "expand and strengthen precious metals", helping to strengthen the company's core business in "precious metals" and enhance the company's market competitiveness.