Zangge Mining Company (000408) investor relations material

Executive summary

• Focused on potash and lithium production, leveraging advanced salt lake extraction technologies to supply key industries including fertilizers and new energy batteries.

• Achieved annual production of 1.03 million tons of potassium chloride and 8,808 tons of lithium carbonate; sales exceeded production for both products.

• Net profit attributable to shareholders rose 49.32% year-over-year to ¥3.85 billion, with revenue up 10.03% to ¥3.58 billion.

• Major investment in copper mining through a 30.78% stake in Julong Copper, contributing 72.23% of net profit.

Financial highlights

• Total assets at year-end reached ¥17.69 billion, up 17.30% from the previous year.

• Net assets attributable to shareholders increased 17.15% to ¥16.24 billion.

• Operating cash flow surged 128.49% year-over-year to ¥2.10 billion.

• Basic and diluted EPS both at ¥2.46, up 50% year-over-year.

• Board approved a cash dividend of ¥15 per 10 shares, no bonus shares or capital increase from reserves.

Outlook and guidance

• Industrial salt project expected to produce and sell 1.5 million tons in 2026.

• Expansion of lithium carbonate capacity by 6,000 tons/year underway.

• Julong Copper’s phase II expansion to boost annual copper output to 30–35 million tons, with further expansion planned.

• Mami Co Salt Lake lithium project to commence full production in Q3 2026, with expected annual output of 20,000–25,000 tons lithium carbonate.