Shandong Gold Mining (01787) plans to jointly contribute capital with its controlling shareholder to establish a Hong Kong treasury company, further strengthening the centralized management of the company's overseas funds.

Shandong Gold Mining (01787) announced that on October 16, 2026, the board of directors approved the joint contribution by Mining Hong Kong, a wholly-owned subsidiary of the company, and Yacheng Company, a wholly-owned subsidiary of Gold Group Company, the controlling shareholder of the company, to establish a Hong Kong treasury company. The Hong Kong treasury company is a newly proposed company to be established in Hong Kong, mainly engaged in the centralized operation and management of overseas funds. According to the investment agreement, the total subscribed capital contribution is RMB 1 billion (or equivalent currency), to be contributed by the parties in monetary form in installments, of which: (i) Yacheng Company subscribes RMB 600 million (or equivalent currency), representing a 60% equity interest; and (ii) Mining Hong Kong subscribes RMB 400 million (or equivalent currency), representing a 40% equity interest. After its establishment, the Hong Kong treasury company will not become a subsidiary of the company, and its financial results will not be consolidated into the group's consolidated financial statements. The announcement stated that the establishment of the Hong Kong treasury company is an investment decision made based on the company's long-term strategic planning and business development needs, which will help further strengthen the centralized management of the company's overseas funds and build an integrated fund management system. The establishment of the Hong Kong treasury company is conducive to reducing the company's overseas financing costs and exchange rate risk hedging costs, improving the efficiency of global fund allocation and risk prevention and control capabilities, and is in line with the company's needs for sustainable and healthy development. The Hong Kong treasury company is a cost-optimization-oriented fund management platform that does not engage in external operating business. Its operating benefits are mainly reflected in the savings of the company's financial expenses and the reduction of risk exposure. This outbound investment is funded by self-owned funds and does not involve external financing by the company. It will not have an adverse impact on the company's ability to continue as a going concern or its financial condition, and there is no circumstance that harms the interests of the company and all shareholders.