CHI KINGSTONE (01380): Signed a memorandum of understanding with First Asia and First Gold Shop to explore cooperation opportunities in the gold value chain.

CHI KINGSTONE (01380) announced that on August 7, 2026, the company entered into a memorandum of understanding (MOU) with First Asian Merchant Gold and Silver Co., Ltd. (First Asian) and First Jewelery Holdings Group Ltd. (First Jewelery). The MOU outlines the framework for the parties to explore potential cooperation opportunities, aiming to establish a long-term strategic partnership and achieve mutually beneficial commercial gains. According to the MOU, the parties intend to explore collaboration opportunities in the gold value chain, including: (i) Gold Supply: The company may supply gold, potentially sourced from its mining operations, to First Asian for trading and retail purposes under commercial terms to be mutually agreed upon in a final agreement. The company retains the right to freely sell its gold to any third parties. (ii) Gold Refining: For the gold supplied to First Asian, the company may be responsible for or arrange gold refining services. (iii) Retail Investment: The parties intend to explore the development and expansion of jewelry retail business and enter the South Asian market. The company may participate in investments related to this retail business. (iv) Comprehensive Strategic Cooperation: The parties will explore cross-marketing, business expansion, joint participation in industry activities, and sharing of market information and expertise. (v) Gold Recycling: The parties may explore cooperation in the business of gold recycling and reuse. (vi) Hedging: First Asian may provide the company with gold price hedging and risk management services. (vii) Mutual Investment: First Asian and First Jewelery may explore potential investments in the company under terms mutually agreed upon by both parties. The group is exploring opportunities to expand its business into gold mining, including involvement with proposed gold mining projects in Chile. The proposed cooperation under the MOU provides a framework for the parties to explore potential vertical integration opportunities in the gold value chain. Under the MOU, the parties may explore participation in downstream activities (from refining and minting to trading, retail, hedging, and gold recycling and reuse) in order to seek opportunities for broader involvement in the gold value chain. Should a final agreement be reached and implemented, strategic cooperation may allow the group to explore (including but not limited to) the following: establishing a direct path to end markets through First Asian's trading and retail channels; participating in potential opportunities in brand retail platforms aimed at the South Asian market; obtaining institutional-level hedging and risk management services (to be separately contracted); exploring opportunities in the gold recycling and reuse business; and potential mutual investment intentions between the parties.