CTM(SH:600711) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-15 06:01Core Viewpoint - The company, Shengton Mining, announced a cash acquisition of all issued and diluted shares of Canadian company Loncor for approximately CAD 261 million (about RMB 1.35 billion), aiming to hold 100% of Loncor post-acquisition [2][3]. Group 1: Acquisition Details - The acquisition price is set at CAD 1.38 per share, totaling around CAD 261 million [2]. - Loncor's core asset is the Adumbi gold mine project located in Ituri Province, Democratic Republic of the Congo, which has a controlled resource of 1.88 million ounces of gold [2][3]. - The current international gold price has reached record highs, with spot gold hitting USD 4186.8 per ounce and COMEX futures reaching USD 4205.8 per ounce [2]. Group 2: Financial Implications - The controlled resource value of the Adumbi gold mine is estimated at USD 7.7 billion (approximately RMB 54.9 billion), significantly exceeding the acquisition cost of RMB 1.35 billion [3]. - The company reported a revenue of RMB 25.7 billion for 2024, a year-on-year increase of 5.21%, and a net profit of RMB 2.005 billion, up 657.63% [3]. - In the first half of 2025, revenue grew by 20.94% to RMB 13.804 billion, but net profit decreased by 5.81% to RMB 1.053 billion [3]. Group 3: Regulatory and Operational Considerations - The company faced regulatory scrutiny for revenue recognition violations from 2021 to 2023, which led to a temporary "ST" designation that was lifted in August 2023 [4]. - The violations included recognizing revenue without the actual transfer of control over goods, affecting multiple financial reports [4].