Zangge Mining Shares Its Exploration and Practice of High-Quality Development at Listed Companies’ High-Quality Development Forum

To thoroughly implement the spirit of the new “National Nine Regulations,” further strengthen corporate governance and standardized operations, and support the high-quality development of listed companies, the Qinghai Securities Association and the Tibet Securities Association, with the support of the Qinghai and Tibet CSRC offices, jointly held a High-Quality Development Training and Exchange Forum for Listed Companies on June 24 in Nyingchi, Tibet Autonomous Region. At the forum, Mr. Li Ruixue, Company Secretary of Zangge Mining, shared the company’s recent exploration and practices on the path of high-quality development, focusing on enhancing core competitiveness, optimizing governance structures, and fulfilling corporate responsibilities, providing new insights for high-quality development of listed companies.

Technological Innovation and Industrial Expansion Build Development Momentum

At the forum, Mr. Li Ruixue first introduced the development history of Zangge Mining. The company, leveraging the mineral resources of the Chaka Salt Lake, focuses on developing the national strategic resources potash and lithium. Through resource integration and technological innovation, it has become a leading domestic producer of potash fertilizers and has made breakthroughs in lithium resources.

“Technological innovation is the inexhaustible driving force propelling Zangge Mining forward,” said Li Ruixue. On technological innovation, the company adheres to independently developed solid-to-liquid conversion technology, efficiently transforming low-grade solid potash into high-grade potassium chloride, greatly improving resource utilization. For lithium carbonate extraction, the company employs an innovative “continuous adsorption + membrane purification and concentration + one-step lithium precipitation” process, achieving the extraction of battery-grade lithium carbonate from ultra-low concentration brine, establishing an industry-leading position.

In addition, the company’s industrial expansion strategy has provided abundant momentum for sustainable development. In recent years, Zangge Mining has used diversified means such as participating in funds and equity acquisitions to secure resource reserves and development, effectively balancing short-term risks and long-term growth. Especially in its Tibet operations, this not only broadens the resource footprint but also injects new driving forces for continued growth.

Optimizing Governance Structure to Solidify Development Foundations

“Corporate governance is the cornerstone of high-quality development. Continuous optimization of the governance structure ensures the company has a solid foundation on the path of high-quality development,” Li Ruixue stated. Regarding high-quality governance measures, he explained that Zangge Mining’s introduction of Shagang Group as a strategic investor is an innovative move in the mining sector, promoting diversified and scientific governance structures. This equity optimization effectively balances stakeholder interests, enhances decision-making transparency and rationality, and improves internal operational efficiency. By continuously refining governance, Zangge Mining can better respond to market changes and achieve sustainable development.

In addition, the company emphasizes internal control governance improvement. “Through top-level design, the company has comprehensively revised and supplemented internal control systems, ensuring regulatory compliance and effective risk control. Key governance documents, such as the Board Audit Committee Working Rules, have been updated, and will continue to align with high governance standards in the future, consolidating the foundation for development.”

Since 2021, Zangge Mining has continuously advanced innovative practices in internal control governance. The establishment and refinement of these systems provide a comprehensive and systematic governance framework, ensuring that the company not only pursues economic benefits but also actively fulfills social responsibilities, achieving sustainable development.

Fulfilling Corporate Responsibility for Win-Win Development under an Investor-Centric Philosophy

“Investor trust is our most valuable asset,” said Li Ruixue. Zangge Mining attaches great importance to investor relations management, not only by establishing an Investor Relations Management System to clarify responsibilities but also by assigning dedicated personnel to ensure unobstructed communication with investors. The company has developed a systematic management plan and an Investor Relations Management Handbook, ensuring orderly daily operations and effectively safeguarding the company’s image in the capital market.

Since 2020, the company has achieved rapid growth, with revenue and net profit increasing significantly. Revenue rose from 1.903 billion RMB to 5.226 billion RMB in 2023, while net profit increased from 229 million RMB to 3.412 billion RMB in 2023.

Zangge Mining never forgets mutual benefit and win-win cooperation with investors, giving back to shareholders in diversified ways, including share buybacks through bidding and actively responding to regulatory policies encouraging cash dividends, maintaining a leading high dividend level in the industry. Li Ruixue explained, “In 2022 and 2023, Zangge Mining distributed dividends twice a year, with total annual cash dividends accounting for 80% and 73% of net profit, respectively. We hope investors gain satisfaction through investing in Zangge Mining, reflecting our commitment and responsibility to shareholders.”

In addition, the company actively fulfills social responsibilities and implements the ESG development concept. Against the backdrop of the new development philosophy of “Innovation, Coordination, Green, Openness, and Sharing,” Zangge Mining has gradually built and continuously improved its ESG system, integrating ESG principles deeply into corporate strategy and operations to become a high-quality development enterprise with social responsibility and accountability.

In recent years, Zangge Mining has achieved rapid growth in economic performance, while also attaining significant results in social responsibility and sustainable development. Looking ahead, the company will continue to work with investors and all sectors of society to jointly write a new chapter of high-quality development, achieve co-creation of value and win-win development, and contribute more to social progress and environmental harmony.