According to the Zhitong Finance App, China Jinshi (01380) issued an announcement regarding the company's interim report for the six months ended June 30, 2026. The company disclosed in the report that limestone mining at the Zhangjiaba mine (a beige marble mine located in Jiangcun, Xiangxiang Township, Jiangyou City, Sichuan Province, China) was temporarily delayed until the mining license was renewed. Since the mining license at the Zhangjiaba mine was successfully renewed on August 10, 2026, the group has been actively resuming mining operations and advancing the strategic plan to expand production capacity at the Zhangjiaba mine.
The Emergency Management Bureau of Jiangyou City, Sichuan Province approved the orderly resumption of production in the designated operation area currently approved within the approved elevation range of the Zhangjiaba Mine on September 9, 2026. According to relevant regulatory regulations, the Group was permitted to carry out mining operations at this approved level, but the Group is not allowed to extend mining operations to deeper areas of the Zhangjiaba mine until the required safety facilities have been completed and approved, and the corresponding new production safety license has been obtained. In view of the fact that currently approved high-altitude mining operations are about to reach the limits stipulated in the existing safety facility design, further mining operations at the Zhangjiaba mine continue to be suspended pending completion of necessary safety facility upgrades and regulatory approvals. In order to promote the continuous development of resources in the deeper regions of the Zhangjiaba mine, the Group is actively promoting production capacity expansion plans.
The Group currently holds a valid production safety license for the Zhangjiaba mine, which is valid until March 26, 2027, with an approved production capacity of 750,000 tons per year. In line with the Group's long-term development strategy, the Group has decided to carry out an expansion project to increase the annual production capacity of the Zhangjiaba mine from 750,000 tons to 3.5 million tons, but it can only be implemented after obtaining relevant regulatory approval.
Since this strategic expansion involved a significant increase in production capacity and the extension of mining operations to a deeper level, it constituted a major upgrade to the mine's safety facilities and scale of operation. To this end, the Group is in the process of applying for an updated safety facility design approval and a corresponding new production safety license for the proposed expansion of production capacity.
To facilitate this expansion, the Group has begun relevant preliminary preparations with the Sichuan Provincial Emergency Management Department, and the relevant application was submitted on October 30, 2026. The Group currently expects to obtain approval for the updated safety facility design by the end of January 2027. After obtaining approval for the design, the Group will commence construction of the 3.5 million ton expansion project, which is expected to take about 3 to 4 months. The Group aims to complete the relevant inspection procedures and obtain a new production safety license to expand production capacity by June 2027, subject to relevant regulatory approval procedures and the progress of construction projects.
During this period, the Group will manage the transition of operations in an orderly manner as the application, construction and licensing procedures are in progress. The board of directors believes that this transition period is a necessary and prudent step to help the Group achieve its long-term strategic goal of further developing the Zhangjiaba mine.
The board of directors believes that implementing the capacity expansion plan will benefit the long-term development of the Zhangjiaba mine. After completion of relevant regulatory procedures and construction projects, the expanded production scale is expected to enhance the Group's operating capacity, economies of scale and overall market competitiveness, thereby creating sustainable long-term value for all shareholders.