Core Viewpoint - The transaction involving Xinjiang Baodi Mining Co., Ltd. is expected to dilute immediate returns but is justified by the long-term benefits of increased iron ore reserves and enhanced operational capabilities [1][2][3]. Group 1: Impact on Immediate Returns - The basic and diluted earnings per share (EPS) are projected to decrease by 33.33% post-transaction, with pre-transaction EPS at 0.03 and post-transaction EPS at 0.02 [1]. - In 2024, the company's EPS is expected to increase post-transaction, while in the first quarter of 2025, it may experience a dilution compared to pre-transaction levels [1]. Group 2: Necessity and Rationality of the Transaction - The transaction will increase the company's total iron ore resources from 3.8 billion tons to approximately 4.6 billion tons, representing a 21.75% increase [2]. - The acquisition will enhance the company's operational footprint in Xinjiang, particularly in the Kashgar and Kizilsu regions, thereby strengthening its market influence [2]. - The transaction aligns with the company's core business of iron ore mining and processing, enhancing its competitive edge in the market [3]. Group 3: Measures to Mitigate Dilution of Immediate Returns - The company plans to expedite the integration of the acquired entity to realize expected benefits quickly [3]. - There will be an emphasis on improving corporate governance and operational efficiency to enhance overall performance [4]. - The company will refine its profit distribution policy to ensure fair returns to all shareholders while maintaining sustainable growth [4]. - Commitments from directors and major shareholders have been made to ensure measures are in place to mitigate the dilution of immediate returns [5]. Group 4: Independent Financial Advisor's Opinion - The independent financial advisor has deemed the company's expectations regarding the dilution of immediate returns to be reasonable and in compliance with relevant regulations aimed at protecting minority investors [6].