Shanjin International Gold Co.,Ltd.

Shanjin International Gold Co., Ltd. is a mining company listed on the Main Board of the Shenzhen Stock Exchange since 2000. The company specializes in the mining and beneficiation of precious metals and non-ferrous metal mines, as well as metal trading. It operates six mining enterprises, including gold mines in Heihe Luoke, Jilin Banmiaozi, and Qinghai Dachaidan, and a polymetallic mine in Yulong Mining. The company also has a subsidiary, Shanghai Shenghong, which provides comprehensive trading services for precious and non-ferrous metals. The primary products of Shanjin International Gold include dore bars, lead concentrate, and zinc concentrate, with a focus on high-silver and low-silver dore bars from its gold mines. The company benefits from the support of its controlling shareholder, Shandong Gold Mining Co., Ltd., which enhances its operational capabilities and financing options. With a strategic focus on resource acquisition and international cooperation, Shanjin International Gold aims to expand its market presence and enhance its value in the non-ferrous metals sector.

(1) Remarkable Advantages in Institutional Mechanisms The controlling shareholder of the company, Shandong Gold Mining Co., Ltd., is a state-owned holding listed company. After the change of the controlling shareholder, the company has achieved the integration of the dual advantages of "state-owned standardization + private enterprise vitality". This mechanism not only retains the market acumen, decision-making flexibility, and innovative vitality of the original private enterprise system but also fully incorporates the resource integration capabilities, standardized management system, and capital operation advantages of the controlling shareholder as a state-owned enterprise. Both parties have formed a synergistic effect in aspects such as resources, asset development, and financing, achieving a result of 1 + 1 > 2. (2) Prominent Advantages in Capital Allocation As of the end of 2024, the company's asset-liability ratio was 18.57%, which is better than that of major gold mining enterprises across the country. The company has strong asset profitability and a good credit standing, and it enjoys advantages such as strong financing capabilities and favorable capital costs. It has maintained good cooperative relationships with financial institutions like banks. By leveraging the endorsement of its state-owned controlling shareholder, the company can enhance its credit rating in the public market and achieve convenient and low-cost financing. As a listed company, the company has good-quality assets and a sound corporate governance structure. In the future, based on the needs of business development, it will adopt various methods to open up more funding channels, helping the company to grow bigger and stronger in the resource market. (3) Distinctive Advantages of the Professional Team Heihe Luoke, Jilin Banmiaozi, and Qinghai Dachaidan were once part of the assets in China of Eldorado Gold Corporation, which ranks among the top in terms of global gold production. After the completion of the acquisition and restructuring, the company has retained the original teams of the mines to the greatest extent possible and cultivated a large number of technical and management talents in various fields, especially those in mine geology, surveying, production planning, equipment management, and safety and environmental protection management. At the same time, the company has inherited the advanced production management concepts and experience of international mining companies. Currently, the digital management level and the safety and environmental protection management level of the mines are both in a leading position in China. Yulong Mining has a group of experienced technicians and managers who have long been engaged in geological exploration and development work. Its minority shareholders, Inner Mongolia Geological Mineral Group Co., Ltd. and Inner Mongolia No. 10 Geological Mineral Exploration, Development and Co., Ltd., possess exploration experts and technical forces who are very familiar with the basic geological data of China's regions. These can provide support for the company to increase resource reserves, improve production capacity, and boost revenues in the future. (4) Outstanding Advantages in Resource Endowment The precious metal mines under the company are all large-scale and of relatively high grade. Among them, the Dong'an Gold Mine of Heihe Luoke is one of the gold mines with a relatively high grade and the easiest to beneficiate and smelt in China. Qinghai Dachaidan is located within the Qilian-Kunlun metallogenic belt on the northern margin of the Qaidam Basin. The mining area is large. In recent years, significant breakthroughs have been made in geological prospecting in this area. The controlled ore bodies are thick, of high grade, and have large resource reserves. With a high average grade of the company's ores, even when the prices of non-ferrous metals fluctuate violently due to the impact of the international economic environment, the company can ensure stable performance and has strong risk resistance. (5) Notable Advantages in Exploration and Reserve Increase As of the end of the reporting period, the company holds a large area of prospecting rights both at home and abroad. Domestically, the company's five mining subsidiaries hold a total of 16 prospecting rights, and the exploration area of these prospecting rights reaches 187.08 square kilometers. Among them, Yulong Mining holds 6 prospecting rights for silver-lead-zinc mines, and the exploration area of these prospecting rights reaches 39.39 square kilometers. The mining area of Yulong Mining is located in the non-ferrous metal metallogenic belt of the Greater Khingan Range and the polymetallic metallogenic belt on the northern margin of the North China Block. This area is rich in non-ferrous metal resources and has the advantageous conditions for forming large mining areas of non-ferrous metals and precious metals such as silver, copper, lead, zinc, and gold. It is a key area attracting domestic and international attention for the search of large, super-large, and even world-class non-ferrous metal deposits, with huge prospecting potential and a very broad exploration prospect. Jilin Banmiaozi, Qinghai Dachaidan, Heihe Luoke, and Jincheng Shengxin hold a total of 10 prospecting rights for gold mines, and the exploration area of these prospecting rights reaches 147.69 square kilometers. Qinghai Dachaidan is located in the key metallogenic area of precious and non-ferrous metal mines in Tanjianshan, Qinghai Province, with excellent metallogenic conditions. There are multiple geophysical and geochemical anomalies around the two mining rights, showing huge prospecting potential. Since its operation started, Jilin Banmiaozi has achieved remarkable results in continuous production exploration, maintaining a good balance between exploration and mining, with continuously stable retained resources and good sustainable operation capabilities. The Dong'an Gold Mine of Heihe Luoke is a rare high-grade, shallow-buried, low-temperature hydrothermal gold mine. There is also the possibility of further prospecting in the periphery and at depth. In the future, it is expected to gradually expand the mine's resource volume and extend the mine's service life. Overseas, Osino holds approximately 5,638 square kilometers of prospecting rights in Namibia, with broad prospecting prospects. Some parts of the deep ore bodies are not closed, giving it the ability to continuously discover new resources and extend the mine's lifespan.