Zangge Mining (000408.SZ) subsidiary received a notice to immediately stop lithium resource development and utilization activities.

Zangge Mining (000408.SZ) announced that its wholly-owned subsidiary, Geermu Zangge Potash Co., Ltd. (hereinafter referred to as "Zangge Potash"), received a notice from the Natural Resources Bureau of Haixi Prefecture and the Salt Lake Management Bureau of Haixi Prefecture on July 16, 2025, ordering the immediate cessation of lithium resource development activities. The notice requires strict compliance with national laws and regulations, fulfilling corporate responsibilities, immediately ceasing illegal mining activities, actively rectifying them, improving the legal procedures for lithium resources, and applying for resumption of production to the Salt Lake Management Bureau of Haixi Prefecture after the procedures for lithium resources are legally compliant and approved. After receiving the notice, the company's wholly-owned subsidiary, Geermu Zangge Lithium Industry Co., Ltd. (hereinafter referred to as "Zangge Lithium"), has suspended production as required. At the same time, the company is actively progressing with the processing of lithium resource extraction procedures. Once the procedures are completed, they will promptly apply for resumption of production to the Salt Lake Management Bureau of Haixi Prefecture. In 2025, Zangge Lithium plans to achieve a production and sales volume of 11,000 tons of lithium carbonate. In the first half of the year, it is expected to produce 5,350 tons of lithium carbonate and sell 4,470 tons, with an estimated net profit of 49 million yuan. This accounts for a small proportion of the company's overall net profit, and the impact on the company's operating performance is expected to be minimal.