Zangge Mining to Acquire 92% Stake in Congo Potash Project with Nearly 2 Billion Tonnes of Resources

Zhiqiu Securities News – On September 20, 2026, Zangge Mining (000408) announced that it received institutional investors for a research visit on September 18, 2026. Participants included representatives from the following institutions:

• Securities Firms: Guosen Securities (Liu Mengluan), Guolian Securities (Wu Huidong), Guotai Haitong (Wei Yudi), Founder Securities (Gan Jiayao), Zheshang Securities (Li Chao), East Money Securities (Zhang Henghao), Kaiyuan Securities (Xu Zhengfeng), Huatai Securities (Wang Weijia), Huachuang Securities (Xu Sibo), Soochow Securities (Zeng Duohong), Industrial Securities (Zhao Yuanzhe), China Post Securities (Wang Manqi), CICC (Fu Kaiming), CITIC Securities (Liu Yufei), Guotai Junan (Wang Ruijian), Shanxi Securities (Wang Rui), Tianfeng Securities (Ding Zilong), Minsheng Securities (Qiu Zuxue), China Galaxy Securities (Hu Tianhao), Southwest Securities (Zhen Li), GF Securities (Feng Weimin), Guohai Securities (Chen Qinyi), Zhongtai Securities (Chen Qiwei), Minmetals Securities (Xu Weibin), Orient Securities (Jin Zhedun), SDIC Securities (Zhou Jinghong), Shenwan Hongyuan (Ma Yanming), Morgan Stanley (Liu Chen), Merrill Lynch Capital (Ouyang Xintong), Everbright Securities (Zhou Jianuo), Changjiang Securities (Wang Xiaoqian), Western Securities (Qi Tianxiang)
• Fund Management Companies: E Fund Management (Ren Jing), Harvest Fund (Tan Li), Southern Fund (Liu Yutang), Bosera Funds (Shi Jiong), China Universal Asset Management (Cai Zhiwen), Fullgoal Fund (Huang Tianqiao), ICBC Credit Suisse Asset Management (Ming Bin), China Europe Fund (Wang Yingli), Guosheng Securities (Wang Hanchen), Xingzheng Global Fund (Liu Yang), Bank of Communications Schroder Fund (He Xiong), Penghua Fund (Zeng Xin), Guotai Fund (Chen Yi), Tianhong Fund (Yu Ran), Fortune SG Fund (Ding Jingfei), Dacheng Fund (Peng Bo), China Asset Management (Zhai Yuhang)
• Asset Management & Other Institutions: Greenwoods Asset Management (Zhou Qian), Gaoyi Asset Management (Deng Xiaofeng), Zhengxin Valley Investment (Yu Zhaoyu), Yuanle Sheng Asset Management (Zhang Yingchao), Qianhe Capital (Jiang Shiqing), High-Flyer Quantitative (Xu Chenghui), Shanghai Juming Investment (Yang Lurong), China-Africa Development Fund (Liu Yun), Pacific Asset Management (Sun Kaige), Huatai Asset Management (Du Tianqi), China Life Pension (Hong Yixin), Ping An Pension (Chen Xianlong)

Key Discussion Points

1. Overview of the Kanga Potash Project (KP Company)

Q: The company held its 13th (Extraordinary) Meeting of the 10th Board of Directors on September 16, 2026, approving the "Proposal on Establishing a Holding Company and Acquiring 92% Equity in Kanga Potash," disclosed on September 17. This conference call focused on communicating the transaction plan and project status.

A: KP Company's core assets are greenfield potash projects located in the Republic of Congo. Through two wholly-owned subsidiaries—SEPK and OEC—the company holds:

• Mining rights for the Kanga Potash Mine (covering 321 km², valid until June 2047)
• Exploration rights for the Loango Potash Mine (covering 286 km²)

According to the 2018 resource estimation report under NI 43-101 standards, within the Kanga mining right area:

• Indicated resources: 810 million tonnes of potassium chloride (avg. grade 17.12%)
• Inferred resources: 1.179 billion tonnes of potassium chloride (avg. grade 16.47%)
• Total: Approximately 1.989 billion tonnes of potassium chloride resources

The Kanga project features substantial resource scale and excellent grades, indicating strong development potential.

2. Progress of the Laos Project

The company is actively advancing the mining permit application for the Laos project, maintaining close communication with relevant Lao authorities and orderly progressing preliminary work. The company will proceed prudently based on permit progress and project circumstances.

This acquisition of the Kanga Potash Project in Congo-Brazzaville further enriches the company's overseas potash resource layout. Going forward, the company will coordinate resource allocation and capacity planning based on the progress of both the Laos and Congo-Brazzaville projects, continuously strengthening resource reserves and sustainable development capabilities.

3. Impact on Strategic Layout and Long-Term Development

Potash resources are a critical resource guarantee for the company's core business. This acquisition helps the company:

• Advance the acquisition of high-quality overseas potash resources
• Further solidify resource reserves
• Enhance resource security and sustainable development capabilities
• Create greater value for shareholders

4. Empowerment by Controlling Shareholder Zijin Mining

Zijin Mining has extensive experience in overseas mining project development, construction, and operational management, and owns multiple mining projects in Africa. The company will leverage Zijin Mining's expertise in:

• Overseas resource development
• Project construction and operational management
• Risk control

Both parties have established a strong cooperation foundation through the Julong Copper Mine project. Additionally, the company has over twenty years of technical expertise in potash beneficiation, flotation processes, and potash fertilizer production. The company will rely on its professional capabilities in the potash sector while drawing on the controlling shareholder's overseas experience to prudently advance the Kanga project.

5. Motivations for Joint Investment with Yuntu Holdings

This joint investment is based on the company's strategic planning and operational development needs, serving as an important measure to expand resource reserves. Key motivations include:

• Leveraging complementary advantages in capital and industry, sharing risks, and jointly promoting early completion and commissioning of the Kanga project
• Comprehensive due diligence conducted with Yuntu Holdings and professional institutions (Deloitte, Zhong Lun Law Firm, Shirui) covering technical, financial, and legal aspects
• Industrial partner recognition of the Kanga project's resource value and development prospects, enhancing project certainty and synergy

6. Impact on Future Dividend Policies

Funding for this investment will come from the company's own funds and self-raised funds. Based on current arrangements, this transaction will not have a material adverse impact on the company's financial condition or operating results. The company will continue to adhere to a positive and stable shareholder return orientation, maintaining continuity and stability in its cash dividend policy while balancing operational development and funding needs.

Company Overview & Financial Performance

Zangge Mining (000408) is primarily engaged in the production and sales of potassium chloride and lithium carbonate, with products widely applied in agriculture, new energy vehicles, energy storage, consumer electronics, and other industries.

Interim Report 2026 (First Half)

| Metric | H1 2026 | YoY Change | |--------|---------|------------| | Main business revenue | RMB 2.065 billion | +23.05% | | Net profit attributable to parent | RMB 3.638 billion | +102.09% | | Net profit (excl. non-recurring) | RMB 3.706 billion | +104.92% |

Q2 2026 Performance

| Metric | Q2 2026 | YoY Change | |--------|---------|------------| | Main business revenue | RMB 1.349 billion | +19.83% | | Net profit attributable to parent | RMB 2.064 billion | +96.05% | | Net profit (excl. non-recurring) | RMB 2.13 billion | +101.22% |

Key Financial Indicators:

• Debt ratio: 7.77%
• Investment income: RMB 2.814 billion
• Financial expenses: RMB 5.9383 million
• Gross margin: 66.69%

Analyst Ratings (Last 90 Days)

• Total institutions issuing ratings: 12
• Buy ratings: 10
• Overweight ratings: 2

Detailed earnings forecast information is available below.

Disclaimer: The above content is compiled by Zhiqiu Securities based on public information and is for reference only, not constituting investment advice.