The 14th meeting of the 9th session of the board of directors of Zangge Mining Co., Ltd. (ZGM) was successfully held by means of both on-site and communication on August 9,2024 in the conference room on the 14th floor, No.15-02, Kunlun South Road, Geermu, Qinghai. The meeting was presided over by Mr. Xiao Ning, chairman of the Company, and all directors, all supervisors and senior officers attended the meeting. The convening procedures of the semi-annual board meeting are in compliance with laws and regulations and the Articles of Association.

Focusing on the Company’s operating results, financial situation, production and operation in the first half of the year, the meeting conducted an in-depth discussion on the full text of the 2024 semi-annual report and its summary, and unanimously approved it. All directors unanimously believed that the preparation of the 2024 semi-annual report was in compliance with laws and regulations and the relevant provisions of the China Securities Regulatory Commission, which truly, accurately and completely reflected the actual situation of the Company in the first half of the year, without false records, misleading statements or material omissions. Its data was complete, which truly presented the Company’s production and operation for the investors.

In terms of profit distribution, the 2024 semi-annual profit distribution plan was formulated by the Company on the premise of taking into account normal operation and long-term development, the purpose of which was to actively return the shareholders and promote all shareholders to share the Company’s business development results. The Company distributed a cash dividend of RMB 2.60 (tax included) to all shareholders for every 10 shares, without bonus shares or Transfer of reserve fund into shares. The total cash dividend of the Company was RMB 408 million (tax included).

Considering the needs for sustainability and funds of the Company and its wholly-owned subsidiaries, the board of directors discussed matters related to the comprehensive credit facility and the provision of guarantees. After full evaluation and prudent decision-making, it was agreed that the Company and its wholly-owned subsidiaries should apply for a comprehensive credit facility with a total amount not exceeding RMB 3 billion or its equivalent in foreign currency to support its business development and ensure the stability of the Company’s overall operations.

In order to safeguard the interests of investors, enhance investors’ confidence in the Company’s investment, and stabilize and enhance the Company’s value, the Company intends to repurchase its outstanding RMB ordinary shares (A shares) with its own funds through centralized bidding transactions, which will be canceled to reduce the registered capital of the Company. The total amount of funds for the repurchase of shares will not be less than RMB 150 million (inclusive) but not more than RMB 300 million (inclusive), and the repurchase price will not be more than RMB 35.90 per share. After careful discussion and research by the board of directors, all directors deliberated and approved the proposal to repurchase the Company’s shares.

The successful conclusion of the board meeting reflects the efficient decision-making and strategic vision of the Company’s management. The Company will continue to uphold the innovative and steady business philosophy, improve its core competitiveness, create greater value for shareholders, and make greater contributions to the development of the industry.