On August 16, the signing ceremony for Hainan Mining's investment in Fengrui Fluorine Co., Ltd. was held in Hainan. Hainan Mining will inject RMB 300 million in cash to increase the capital of Luoyang Fengrui Fluorine Co., Ltd. (hereinafter referred to as "Fengrui Fluorine") and acquire a 15.79% stake in the company. This marks the expansion of Hainan Mining's resource layout into the field of fluorite, a strategic and critical mineral.

Fluorite, also known as fluorspar, is a non-renewable strategic resource. It has been designated as a critical mineral by many countries around the world and is widely used in industries such as industry, chemicals, metallurgy, and new energy. Market demand for fluorite is expected to continue growing in the future.

Fengrui Fluorine's main business includes the mining and processing of fluorite ore, as well as the production and sales of chemical products like anhydrous hydrogen fluoride. It holds 8 fluorite mining rights in Henan Province, with a retained ore resource reserve of 13.54 million tons. In 2024, it mined 718,000 tons of ore, produced 78,000 tons of fluorite lumps and 78,000 tons of fluorite concentrate respectively, and achieved an operating income of RMB 668 million and a net profit of RMB 165 million.

Hainan Mining focuses on the exploration, development, and operation of strategic resources. Currently, it has formed a diversified resource layout centered on iron ore, oil and gas, and lithium resources, making it the only A-share listed resource enterprise with a presence in both metal minerals and energy minerals.

This capital increase and equity participation in Fengrui Fluorine is the company's first investment in the specific mineral segment of fluorite. It is in line with the company's strategy and will help further optimize its strategic resource layout, improve the company's profitability, and enhance its ability to cope with cyclical fluctuations in commodity prices.