ST Zhengping: The company's mining capacity is insufficient, and there is significant uncertainty in generating profits.

ST Zhengping announced that its wholly-owned subsidiary, Geermu Shengguang Mining Development Co., Ltd. has obtained a "Mining Permit" issued by the Natural Resources Department of Qinghai Province. The company's mining capacity is insufficient, and future development of mineral resources will require large-scale investment in construction and operation. However, the company currently lacks sufficient funds, personnel, and equipment for subsequent mining. There is significant uncertainty about the progress and profitability of future mineral resource development. As of June 30, 2025, the company's monetary funds amount to 101,723,487.39 yuan, of which 81,664,227.39 yuan is restricted due to farmers' worker guarantee deposits and litigation freezes. The asset-liability ratio is 92.22%. Influenced by various factors such as capital investment, market environment, industry policies, external environment, and lack of personnel, there is significant uncertainty about the progress and profitability of future mineral resource development.