Core Viewpoint - Beijing Jingwei Asset Appraisal Co., Ltd. provided a detailed response to the Shanghai Stock Exchange regarding the asset purchase and fundraising application of Xinjiang Baodi Mining Co., Ltd., showcasing the rigor and professionalism of the evaluation process [1] Evaluation Methods - The evaluation methods used for Baodi Mining's mining rights are in accordance with the "China Mining Rights Evaluation Standards," employing the discounted cash flow method for mining rights and the exploration cost utility method for exploration rights, aligning with industry practices and evaluation standards [2] - The discounted cash flow method was chosen for the mining rights due to the Ziluoyi North Iron Mine being an expanded and productive mine with adequate resource reserves and risk assessment conditions [2] Evaluation Parameters - The evaluation value for the mining rights was determined to be 46,939.36 million yuan, based on technical economic parameters that are comparable and prudent [3] - The assessment of the mining rights renewal process has been confirmed to meet relevant requirements, with no obstacles to renewal, and the evaluation period extends to 2050, which is longer than the mining rights transfer period [3] - The iron concentrate price used in the evaluation was set at 739.45 yuan per ton, based on actual sales prices and market prices, reflecting industry norms [3] Overall Assessment - The evaluation of Baodi Mining's mining and exploration rights adhered strictly to industry standards, considering historical data and comparable cases, demonstrating a high level of reasonableness and prudence, thus providing a solid valuation basis for related transactions [4]

Core Viewpoint - Yunnan Copper Industry has received an inquiry letter from the Shenzhen Stock Exchange regarding its application for issuing shares to purchase assets and raise supporting funds, indicating ongoing regulatory scrutiny and the need for additional disclosures [1] Group 1: Industry and Market Situation - The copper industry is influenced by global economic cycles, with tight supply of copper resources and a low self-sufficiency rate in China, leading to a reliance on imports. Future demand for copper is expected to remain strong, supporting higher copper prices [2] - Short-term pressures on copper smelting capacity and inventory reduction may squeeze processing fees, but a long-term recovery in processing fees is anticipated as capacity clears [2] Group 2: Impact on Resource Reserves and Self-Sufficiency - Before the transaction, Yunnan Copper held 3.6509 million tons of copper resources with an average grade of 0.38%, while Liangshan Mining had 779,700 tons with an average grade of 1.16%. Post-transaction, the self-sufficiency rate is projected to increase from 4.54% to 5.47% in 2024, and to 8.09% by 2029 after the Red Mud Slope Copper Mine reaches full production [3] Group 3: Enhancing Sustainable Operating Capability - The acquisition of Liangshan Mining will enhance Yunnan Copper's asset and profit scale, optimize its capital structure, and strengthen its sustainable profitability and core competitiveness, benefiting from the upward trend in copper prices [4] Group 4: Financial Performance and Debt Management - Liangshan Mining has demonstrated strong profitability and cash flow, with a long-term loan balance of 551.398 million yuan due within one year, all of which have been repaid on time. The company has sufficient bank credit lines, indicating strong liquidity and debt repayment capabilities [6] Group 5: Sulfuric Acid Price Trends - The price of sulfuric acid, a byproduct of copper smelting, has been rising since 2024 due to increased upstream sulfur prices and reduced supply, aligning with market trends [8] Group 6: Related Transactions and Fairness - Related transactions involving the procurement of copper concentrate and sales of anode copper are deemed reasonable and necessary, with pricing consistent with market practices, ensuring fairness in transactions [29]

Core Viewpoint - The company is responding to an inquiry from the Shenzhen Stock Exchange regarding a significant asset acquisition, detailing the financial arrangements and justifications for the transaction [1][2][3]. Group 1: Transaction Details - The transaction is priced at 650,768.80 million yuan, based on the previous auction price of Wenzhou Yingsheng Industrial Co., and considers the synergy between the target company and the listed company [2]. - The company has a cash and cash equivalents balance of 425,338.69 million yuan as of March 2025, indicating a significant gap with the transaction price [2]. - Payment arrangements include three installments of 335,075.78 million yuan, 191,417.66 million yuan, and 89,521.60 million yuan, to be paid within specified timeframes after court approval [2][3]. Group 2: Financial Arrangements - The payment schedule is structured to ensure that the company can manage its cash flow effectively while complying with the restructuring plan [3][4]. - The company has secured various funding sources, including self-owned funds, bank loans, and shareholder loans, totaling approximately 32.60 billion yuan available for use [6][7]. - The company has a strong cash flow from operations, with net cash flow from operating activities reported at 92,799.29 million yuan for 2022, indicating good financial health [7]. Group 3: Operational Readiness - The target company is currently inactive, but the listed company plans to leverage its extensive mining experience to facilitate the target company's resumption of operations [5]. - The payment of the restructuring investment is not directly tied to the target company's operational resumption, as the restructuring process is ongoing [5]. - The company anticipates that substantial progress will be made in the target company's operations before the full payment of the restructuring investment [5]. Group 4: Asset Evaluation - The target company's assets were evaluated using both asset-based and income-based methods, with the asset-based method showing a significant increase in value [9][10]. - The asset-based valuation indicated an increase of 484,290.09 million yuan, primarily due to the high market value of the processed products [13][14]. - The income-based valuation assumes that the acquisition will enable operational synergies, leading to enhanced future cash flows [18][19]. Group 5: Strategic Benefits - The acquisition is expected to enhance the company's resource reserves and reduce safety risks associated with adjacent mining operations [11][12]. - The integration of the target company's resources is anticipated to maximize operational efficiency and minimize potential conflicts with neighboring mining operations [12][21]. - The company aims to utilize its existing operational advantages to improve the target company's performance post-acquisition, thereby benefiting shareholders and stakeholders [12][21].

Core Viewpoint - The company, Sichuan Anning Titanium Iron Co., Ltd., is undergoing a significant asset acquisition, with the evaluation of the target asset, Jingzhi Mineral, showing a substantial increase in value through both asset-based and income approaches, indicating strong potential for future profitability [1][3][20]. Group 1: Asset Evaluation - The asset evaluation as of March 31, 2025, indicates an increase of 484,290.09 million yuan, with an appreciation rate of 1,831.95% using the asset-based method [3][20]. - The evaluation of finished products is based on a detailed report that estimates the low-grade ore stockpile at 57,961.3 thousand tons, with iron and titanium grades of 15.22% and 5.61%, respectively [3][5]. - The income approach assumes that the acquisition will enable the company to leverage synergies, leading to enhanced operational efficiency and profitability [9][20]. Group 2: Financial Metrics - The expected sales revenue from the processed products is calculated to be 742,908.00 million yuan, based on the estimated production of iron and titanium concentrates [6][20]. - The operating costs and investments are derived from a feasibility report, with total costs including construction investment of 23,060.00 million yuan and taxes of 27,543.00 million yuan [6][20]. - The net profit is projected after deducting taxes and appropriate profit margins, leading to a final evaluation value of 131,959.00 million yuan for the finished products [7][20]. Group 3: Methodology and Assumptions - The evaluation methods employed include both the asset-based approach and the income approach, with the latter considering specific synergies from the acquisition [10][20]. - Key parameters for the income approach include a discount rate of 9.61%, which reflects the weighted average cost of capital (WACC) and is justified by recent comparable cases in the industry [15][20]. - The differences in valuation results between the two methods are attributed to the expected operational synergies and the specific management capabilities of Anning Co. post-acquisition [11][20].