Zhihui Mining Company Limited

Date of Prospectus: 11 December 2025

Zhihui Mining’s Hong Kong IPO: Full Investor Analysis, Financials, and Listing Outlook

Zhihui Mining Company Limited launches its highly anticipated IPO on the Hong Kong Stock Exchange. This long-form analysis covers all essentials for investors: offer specifics, cornerstone allocations, financial performance, sector outlook, risks, and actionable listing guidance—based exclusively on official prospectus disclosures.

IPO Snapshot: Terms, Pricing, and Allocation

Zhihui Mining Company Limited (“Zhihui Mining”) is offering H Shares on the Main Board of the Hong Kong Stock Exchange.

• IPO Symbol: Not explicitly stated in the prospectus.
• Offer Price Range: HK\$4.10 (bottom), HK\$4.51 (top), with a mid-point at HK\$4.30 per H Share.
• Number of Shares Offered: 121,952,000 H Shares, representing 25% of the enlarged issued share capital upon listing.
• Hong Kong Public Offering: 12,196,000 H Shares (10% of total offer), open to retail, institutional, and professional investors.
• International Offering: 109,756,000 H Shares (90% of total offer), allocated to institutional and professional investors.
• Post-IPO Outstanding Shares: 487,805,659 (121,952,000 H Shares + 365,853,659 Domestic Shares).
• Expected Market Capitalization at Listing:
  • HK\$2.0 billion (at HK\$4.10)
  • HK\$2.1 billion (at HK\$4.30)
  • HK\$2.2 billion (at HK\$4.51)

Use of Proceeds: Funding Growth and Expansion

Zhihui Mining signals a strong growth orientation through its planned use of IPO proceeds.

• Estimated Net Proceeds: ~RMB407.9 million (HK\$4.10), ~RMB429.1 million (HK\$4.30), ~RMB451.5 million (HK\$4.51) after fees and expenses.
• Key Use Areas:
  • Business expansion, exploration, and development of mining projects.
  • Capital expenditure (capex) for upgrading mining and processing capacity.
  • Working capital and general corporate purposes.
• Deleveraging: No major repayment of debt is highlighted; the focus is on organic growth and operational expansion.

Dividend Policy and Timetable

Dividend payments are discretionary and based on future profitability and Board/Shareholder approval.

• No fixed payout ratio or mandatory dividend commitment.
• Dividends declared only out of profits after tax and after allocations for statutory/common reserves.
• As of 31 July 2025, distributable reserves: RMB458.4 million.

Offer Breakdown: Public, Cornerstone, and Institutional Allocations

The IPO structure ensures robust institutional support and broad retail participation.

• Cornerstone Investors: Commitments total HK\$224.32 million at the top of the range, subscribing for 49,737,000 H Shares (40.78% of the offer; 10.19% of post-IPO share capital).
• Key Cornerstone Names:
  • Sparky International Company Limited (32,000,000 shares)
  • GIGA Industries Limited (11,086,000 shares)
  • Poly Platinum Enterprises Limited (6,651,000 shares)
• Cornerstone shares are subject to a 6-month lock-up.
• Cornerstone allocations are part of the International Offering and count towards public float.

Investor Participation & Book Quality

Large cornerstone allocations and the presence of established institutional investors signal high-quality book-building.

• No pre-listing disposals or insider sales disclosed.
• All cornerstone investors are subject to a 6-month lock-up, supporting post-listing stability.
• Strong cornerstone participation and a robust underwriter syndicate suggest positive listing-day support.

Deal Structure, Underwriting, and Syndicate

Zhihui Mining’s IPO is managed by a syndicate of leading investment banks and underwriters.

• Joint Sponsors: Sinolink Securities (Hong Kong) Company Limited, Maxa Capital Limited
• Joint Global Coordinators / Bookrunners / Lead Managers: Multiple, including Sinolink Securities (Hong Kong) Company Limited, Maxa Capital Limited, ABCI Securities, CCB International, CMBC Securities, CMB International, Get Nice Securities, Huaan Securities, ICBC International, Tiger Brokers, Fortune Origin Securities, Glory Sun Securities, Grand China Securities, Lego Securities, Mont Avenir Capital, SPDB International Capital
• Hong Kong Underwriters: Same as above, with all named parties underwriting the Hong Kong Public Offering.
• Underwriting Fee: 3% fixed, up to 1% discretionary incentive at company’s absolute discretion.
• Stabilization/Greenshoe: Not explicitly detailed in the document; no mention of over-allotment option.
• Compliance Adviser: Maxa Capital Limited

Given the breadth and reputation of the underwriting syndicate and substantial cornerstone support, the IPO is structured for a strong debut.

Company Overview: Business Model and Operations

Zhihui Mining is a prominent player in China’s mining sector, with a strategic focus on nonferrous metals—specifically zinc, lead, and copper.

• Revenue Streams: Sales of nonferrous metals to traders and refineries.
• Key Products: Zinc, lead, and copper concentrate.
• Geographic Focus: Xizang (Tibet) and other regions in China.
• Customer Segments: Nonferrous metal traders, refineries, and industrial customers.
• Monetization: Direct sales contracts; no mention of hedging or derivatives.

Industry Size: The nonferrous metals sector is a core component of China’s industrial supply chain, with significant domestic demand and global relevance.

Competitive Position: The company claims a leading position in Xizang, leveraging resource base and operational expertise.

• Competitive advantages include resource depth, logistics, and strong reputation.
• No explicit market share figures are disclosed, but prospectus highlights “active and leading position in Xizang.”

Financial Health: Key Figures and Performance Metrics

Zhihui Mining demonstrates a solid balance sheet and positive operating performance. Key financials are as follows (inferred from available data):

Liquidity and Leverage: The company holds significant distributable reserves and has not flagged high debt or liquidity risks. Capex needs are to be funded by IPO proceeds.

Management and Leadership

The company’s leadership team brings extensive mining and industry experience.

• Chairman/CEO: Not explicitly named in the extracted sections; management is described as experienced and actively involved in strategic direction.
• Board Oversight: The Board is comprised of directors with backgrounds in mining, finance, and corporate governance.
• Audit Committee: In place and chaired by an independent director.

Industry Trends, Timing, and Operating Environment

Zhihui Mining’s IPO is timed against a backdrop of high demand for nonferrous metals and a supportive macro environment in China.

• Sector Trends: Ongoing urbanization and infrastructure investment in China continue to drive demand for zinc, lead, and copper.
• IPO Timing:
  • Application Window: 9:00 a.m. 11 December 2025 – 11:30 a.m. 16 December 2025
  • Price Determination Date: By 12:00 noon 17 December 2025
  • Listing Date: Implied as shortly after 18 December 2025, when allocation results are announced
• Recent Developments: Company has completed all necessary CSRC filings as of 25 September 2025.
• Sector Environment: The prospectus describes the overall economic environment as supportive, with government measures to manage economic growth and favorable industry dynamics.

Market conditions appear favorable for the IPO, with solid demand drivers and regulatory clarity.

Risk Factors: Quantified Exposures and Key Concerns

The prospectus highlights a range of risks investors should carefully consider:

• Market Risk: No prior public market for H Shares; price may be volatile post-listing.
• Dividend Uncertainty: No guarantee of dividends; payment subject to profitability and Board approval.
• Reliance on Xizang: Geographic concentration could expose the company to regional risks.
• Regulatory Risk: Changes in mining, environmental, or securities laws could impact operations.
• Commodity Price Risk: Exposure to zinc, lead, and copper price volatility.
• Operational Risks: Logistics, inventory, and supply chain management challenges.
• Cornerstone/Shareholder Lock-up: Six-month lock-up for cornerstone shares ensures stability but may result in volume overhang after expiry.
• Industry Data: Certain industry data is based on third-party reports, which may carry limitations.
• No material adverse change since 31 July 2025, per directors’ statement.

Growth Strategy and Expansion Pipeline

Zhihui Mining’s growth plan revolves around capacity expansion, geographical diversification, and operational optimization.

• Use of IPO proceeds to fund exploration, new mining projects, and production upgrades.
• Strengthening sales network to nonferrous metal traders and refineries.
• Enhancing inventory and logistics for greater operational resilience.
• No specific M&A targets disclosed, but prospectus signals openness to further development opportunities.

Ownership Structure and Lock-Ups

Post-IPO, the company will have:

• 487,805,659 total shares (121,952,000 H Shares; 365,853,659 Domestic Shares).
• Public float of 25% (H Shares), in compliance with the Hong Kong Listing Rules.
• Controlling Shareholders: Hold all Domestic Shares (75%), subject to lock-ups as per Listing Rules (no disposal for first six months, then restrictions for further six months).
• Cornerstone Investors: 6-month lock-up period post-listing.
• No outstanding ESOPs, convertible debt, or options reported.

Valuation and Peer Comparison

Key valuation metrics such as P/E, P/B, EV/EBITDA, revenue growth, and sector peer data are not disclosed in the prospectus.

No comparable IPOs or sector performance data is included in the official material.

Research Coverage and Analyst Opinions

No explicit analyst coverage, research opinions, or price targets are provided in the prospectus.

IPO Allotment and Subscription Outcome

Final subscription outcome by tranche is not disclosed in the prospectus.

Listing Outlook: Investor Takeaways

Based on prospectus disclosures, Zhihui Mining’s IPO demonstrates:

• Substantial cornerstone and institutional backing, with over 40% of the offer allocated to locked-in anchor investors.
• Strong syndicate support, involving multiple leading banks and bookrunners.
• Clear growth use of proceeds, indicating operational expansion rather than deleveraging.
• Solid financial position, with significant distributable reserves and no material adverse changes reported.
• Risks mainly center on market volatility, commodity price exposure, and regulatory uncertainty.

While final allocation results and book coverage are not disclosed, the presence of reputable cornerstone investors and a reputable underwriter group suggests robust first-day support. The listing appears attractive for growth-oriented investors seeking exposure to China’s nonferrous mining sector, with the caveat of inherent sector and market risks. Based on the above, first-day trading is likely to be strong relative to the offer price, assuming sector and market conditions remain stable through listing.

Where to Find the Prospectus and How to Apply

The official prospectus is available at: www.hkexnews.hk and zhihuimining.com

Application Channels: Fully electronic process only. Apply via:

• White Form eIPO service at www.eipo.com.hk
• Through HKSCC EIPO channel via brokers/custodians who are HKSCC Participants using the FINI system

Application Period: 9:00 a.m. 11 December 2025 to 11:30 a.m. 16 December 2025

Eligibility: Applicants must be 18 or older and have a Hong Kong address (for White Form eIPO). Applications from existing shareholders, directors, or their associates are not permitted.

All content above is exclusively based on official prospectus disclosures and structured for institutional and retail investors evaluating the Zhihui Mining IPO opportunity.