Group 1: Company Overview and Activities - The company, Ningxia Dongfang Tantalum Industry Co., Ltd., held an investor activity on September 4, 2025, from 14:00 to 17:00 [2] - Participants included representatives from Western Securities and Bosera Fund, along with the company's chairman and vice general manager [2] Group 2: Production Expansion Plans - The company plans to invest in three capacity expansion projects using raised funds [2] - The projects include: - A digital factory for tantalum and niobium wet metallurgy with a production capacity of: - Potassium fluotantalate: 1,100 tons/year - Niobium pentoxide: 1,700 tons/year - High-purity niobium pentoxide: 150 tons/year - High-purity tantalum pentoxide: 50 tons/year - Tantalum-niobium compounds: 209.5 tons/year - By-product tin concentrate: 90 tons/year [3] - A smelting production line for tantalum and niobium with an expected capacity of: - Niobium: 860 tons/year - Tantalum: 80 tons/year - Niobium and niobium alloy bars: 74 tons/year - Tantalum and tantalum alloy bars (rods): 240 tons/year [3] - A high-end product line for tantalum and niobium with a capacity of 145 tons/year for tantalum-niobium plates and strips [3] Group 3: Raw Material Supply Chain - The company has secured a stable supply chain for tantalum and niobium raw materials through a binding equity acquisition of Brazil's Taboca Company [4] - A procurement contract for approximately 3,000 tons of iron niobium tantalum alloy has been signed with Taboca [4] Group 4: Cost Structure and Management - The primary cost component for the company is raw material procurement [5] - The company aims to enhance lean management and technological innovation to achieve scale and quality efficiency [5] - Ongoing capacity expansion projects are expected to improve both wet and dry metallurgy production capacities while strengthening quality management and cost control [5]

Fundraising Plan - The company plans to raise a total of up to 1.2 billion RMB through a private placement of A-shares, with the funds allocated to three construction projects and working capital [1] - The total investment for the projects is estimated at 1.37358 billion RMB, with 1.2 billion RMB sourced from the fundraising [1] Project Feasibility Analysis - The fundraising projects align with national policies to enhance domestic circulation and ensure the security of the industrial chain, addressing the "bottleneck" issues in key technology areas [2][3] - The projects aim to optimize the product structure and upgrade the company's industry capabilities, responding to the evolving demands in the tantalum and niobium sector [2][3] - The projects will enhance the company's production capacity and competitiveness by filling capacity gaps in critical areas [3][4] Market Demand and Strategic Importance - The products from the fundraising projects are essential for high-temperature alloys, semiconductors, and defense industries, contributing to national security and reducing reliance on imports [2][3] - The company aims to establish a "three-tier product hierarchy" to ensure supply chain security and foster competitive advantages in high-end products [2][3] Government Support and Policy Alignment - The company benefits from various national and local government policies that support the tantalum and niobium industry, emphasizing the importance of these materials in strategic emerging industries [5][6] - The projects are in line with the company's development strategy, focusing on enhancing its core business areas of wet metallurgy, fire metallurgy, and product manufacturing [6] Financial Projections and Capital Structure - The company anticipates a compound annual growth rate of 10% in revenue over the next three years, with projected revenues of 140.87 million RMB in 2025 and 170.45 million RMB in 2027 [16][18] - The fundraising will also address the company's working capital needs, optimizing its capital structure and enhancing its ability to withstand market risks [15][20] Project Details and Expected Returns - The wet metallurgy project has a total investment of approximately 678.69 million RMB, with an expected internal rate of return of 12.77% and a payback period of 8.45 years [10][13] - The fire metallurgy project requires an investment of about 287.99 million RMB, with an expected internal rate of return of 11.06% and a payback period of 7.98 years [12][13] - The high-end product production line project has a total investment of around 281.20 million RMB, with an expected internal rate of return of 12.30% and a payback period of 7.72 years [14][15] Conclusion - The board of directors believes that the fundraising plan aligns with national policies and the company's strategic goals, enhancing its overall strength and ensuring sustainable development [21]

Fundraising Overview - The company raised a total of RMB 674,627,088.84 through the issuance of 59,281,818 shares at a price of RMB 11.38 per share, with net proceeds amounting to RMB 670,204,385.22 after deducting underwriting fees and other expenses [1][2] - The funds were received on September 27, 2023, and verified by an accounting firm [1] Fund Usage and Balance - As of June 30, 2025, the company has utilized RMB 543,095,579.78 of the raised funds, leaving a balance of RMB 128,104,683.89 in the special account [2][3] - The difference of RMB 995,878.45 between the utilized amount and the net proceeds is attributed to interest income minus bank fees [2] Fund Management - The company has established a dedicated management system for the raised funds, adhering to relevant regulations and guidelines [2][3] - A special bank account has been opened solely for the storage and use of the raised funds, with a tripartite supervision agreement signed with banks and the sponsor [3] Project Investment Status - No changes have occurred in the investment projects funded by the raised capital during the reporting period [5] - The company has reported that the investment projects are progressing as planned, with specific projects such as the tantalum-niobium metallurgy product line and the niobium superconducting cavity production line undergoing technical upgrades [7][8] Financial Performance of Projects - As of June 30, 2025, the investment progress for the niobium superconducting cavity production line is at 65.01%, with reasons for delays including pre-investment using self-raised funds and cost management strategies [7][8] - The company has not encountered any significant changes in project feasibility or major issues regarding the use and disclosure of raised funds [8]

Group 1: Company Overview - Ningxia Dongfang Tantalum Industry Co., Ltd. is the largest producer of tantalum and niobium products in China and has advanced international production technology [5] - The company has established itself as a national key high-tech enterprise and a pioneer in technology-driven trade export innovation [5] - Over 60 years of development has led to a solid foundation in technology research and production capabilities [5][6] Group 2: Investment Projects - The company plans to expand production capacity through three main projects: - A digital factory for tantalum and niobium with capacities of 1,100 t/year for potassium fluotantalate, 1,700 t/year for niobium pentoxide, 150 t/year for high-purity niobium pentoxide, 50 t/year for high-purity tantalum pentoxide, and 209.5 t/year for tantalum-niobium compounds, along with 90 t/year of tin concentrate [3] - A smelting production line that will add capacities of 860 t/year for niobium, 80 t/year for tantalum, 74 t/year for niobium and niobium alloy bars, and 240 t/year for tantalum and tantalum alloy bars [3] - A high-end product line that will increase tantalum and niobium plate and strip product capacity by 145 t/year [3] Group 3: Market Considerations - The company is responding to significant changes in the tantalum and niobium industry, necessitating an optimization of product structure and increased investment in new demand areas [4] - Rapid developments in high-tech fields such as 5G, smart technology, and national defense are driving new demand for tantalum and niobium products [4] - The current production capabilities are insufficient to meet the growing downstream demand, prompting the need for new construction and renovation projects [4] Group 4: Recent Developments - The actual controller of the company, China Nonferrous Metal Mining Group Co., Ltd., completed the acquisition of a controlling stake in Brazil's Taboca Company on March 31, 2025 [7] - A procurement contract for iron niobium tantalum alloy raw materials has been signed with Taboca [7]

Core Viewpoint - Dongfang Tantalum Industry plans to raise up to 1.2 billion yuan through a private placement to enhance production capacity and supplement working capital, reflecting strong support from major shareholders for national strategic resource security and supply chain stability [1][4]. Group 1: Fundraising and Investment Projects - The fundraising will focus on three main projects with a total investment of 1.374 billion yuan, including a wet metallurgy digital factory, a pyrometallurgy smelting production line upgrade, and a high-end product production line [2][3]. - The wet metallurgy project aims to produce various key materials, addressing aging equipment and capacity shortages, while the pyrometallurgy project will increase production capacity for niobium and tantalum to meet market demand [2][3]. - The high-end product line will enhance production capacity for tantalum and niobium products, targeting sectors like semiconductors and aerospace [2][3]. Group 2: Market Demand and Industry Position - The demand for tantalum and niobium materials is structurally increasing due to their importance in strategic emerging industries, with significant growth in sectors such as semiconductors and aerospace [5][6]. - Dongfang Tantalum Industry has a comprehensive industry chain and has achieved global leadership in metallurgy technology, with a strong financial performance supporting the new fundraising initiatives [4][6]. Group 3: Economic Benefits and Project Feasibility - The three investment projects are expected to yield favorable economic returns, with post-tax internal rates of return (IRR) of approximately 12.77% for the wet metallurgy project, 11.06% for the pyrometallurgy project, and 12.30% for the high-end product project [3]. - The projects will enhance the company's ability to supply key materials independently, reducing reliance on external sourcing and mitigating supply chain risks [3][4]. Group 4: Shareholder Returns and Market Management - Dongfang Tantalum Industry has implemented a robust shareholder return mechanism, distributing 66.66 million yuan in cash dividends in 2024, which is 31.26% of net profit, marking a record high since its listing [7]. - The company has engaged in extensive investor relations activities, hosting 17 investor meetings in 2025, attracting significant institutional interest [7][8].

Core Viewpoint - The report details the fundraising activities and the utilization of proceeds by Ningxia Dongfang Tantalum Industry Co., Ltd, highlighting the total amount raised, the status of funds, and the actual investment projects undertaken with the raised capital [1][2]. Fundraising Details - The company raised a total of RMB 670,204,385.22 through the issuance of 59,281,818 shares at a price of RMB 11.38 per share, with the funds received on September 27, 2023 [1]. - As of March 31, 2025, the company had a remaining balance of RMB 149,907,012.98 from the raised funds, which constitutes 22.37% of the net amount raised [1][2]. Fund Utilization - The actual investment amount from the raised funds was RMB 521,263,566.21, resulting in a difference of RMB 14,894,080.00 compared to the committed investment amount of RMB 67,020,440.00 [1][2]. - The discrepancies in investment amounts are attributed to ongoing construction phases and cost optimization strategies [1][2]. Project Performance - The annual production line for 100 niobium superconducting cavities reached its intended operational status by December 2024, but as of March 31, 2025, it generated a cumulative benefit of RMB 707,300, which is below the promised benefit of RMB 1,381,800 by over 20% [2][3]. - The company has not experienced any changes in the investment projects funded by the previous fundraising efforts [1][2]. Comparison with Annual Reports - The actual use of funds aligns with the disclosures made in the company's periodic reports since 2023, confirming consistency in reporting [2].

Fundraising Plan - The company plans to raise a total of up to 1.2 billion RMB through a private placement of A-shares, with the funds allocated to three construction projects and working capital [1] - The total investment for the projects is estimated at 1.37358 billion RMB, with 1.2 billion RMB sourced from the fundraising [1] Project Overview and Feasibility Analysis - The fundraising projects aim to support domestic economic circulation and ensure the security of national industrial chains, aligning with national development strategies [2][3] - The wet metallurgy project will produce key raw materials such as potassium fluotantalate and niobium oxide, essential for subsequent production processes in high-temperature alloys, semiconductors, and defense industries [2][3] - The projects are expected to optimize the product structure and upgrade the company's industrial capabilities, addressing the growing demand in the tantalum and niobium sector [2][3] Industry and Market Context - The projects are supported by national and local industrial policies that emphasize the development of rare metals and new materials, which are critical for various high-tech applications [5][6] - The company is positioned to meet the increasing market demand for high-value-added products in sectors like semiconductors and aerospace, enhancing its competitive edge [4][7] Financial Projections - The company anticipates a compound annual growth rate (CAGR) of 10% in revenue over the next three years, with projected revenues of approximately 1.41 billion RMB in 2025 and 1.70 billion RMB in 2027 [16][18] - The fundraising will also address the projected working capital gap of 232.66 million RMB from 2025 to 2027, ensuring sufficient liquidity for operations [19][20] Operational Impact - The fundraising projects are expected to enhance the company's operational capabilities, improve financial stability, and reduce financial risk by optimizing the capital structure [20][21] - The implementation of these projects will solidify the company's market position and support long-term sustainable growth [21]