Zhihui Mining Co., Ltd.

Date of Prospectus: 11 December 2025

Zhihui Mining IPO: Cornerstone Commitments and Digital-First Process Signal a New Era for Hong Kong Listings

Zhihui Mining’s initial public offering (IPO) on the Main Board of the Hong Kong Stock Exchange marks a pivotal moment for the nonferrous metals sector in China. With a robust electronic application process, strong cornerstone investor backing, and a well-defined growth strategy, the company aims to solidify its leadership in the mining industry. This comprehensive analysis breaks down the key facts, financials, and outlook every investor needs to know.

IPO Snapshot: Anchor Investors and Offer Structure

Zhihui Mining (IPO symbol not disclosed) is offering a total of 121,952,000 H Shares, representing 25% of the post-listing share capital. The indicative offer price range is HK\$4.10 to HK\$4.51 per share, with the final price to be determined by 17 December 2025. The expected market capitalization at listing ranges from HK\$2.0 billion to HK\$2.2 billion.

The company has implemented a fully electronic application process, available via www.eipo.com.hk or through brokers/custodians using HKSCC’s FINI system.

Use of Proceeds: Growth-Focused Capital Deployment

Zhihui Mining aims to deploy the estimated net proceeds (HK\$407.9 million to HK\$451.5 million depending on final pricing) primarily towards:

• Business expansion, project development, and capital expenditures
• Enhancing working capital
• Strategic investments aligned with growth objectives

This allocation signals a strong growth-driven narrative rather than deleveraging or debt repayment.

Placement Structure: Cornerstone Investors Take Center Stage

A significant portion of the offering (up to 42.24% of the offer shares at the low end of the price range) is committed to cornerstone investors, including:

• Sparky International Company Limited: 32,000,000 shares
• GIGA Industries Limited: HK\$50 million worth of shares
• Poly Platinum Enterprises Limited: HK\$30 million worth of shares

Cornerstone investors are subject to a 6-month lock-up period post-listing, supporting aftermarket stability.

Investor Participation & Book Quality

The significant allocation to cornerstone investors, including institutional names, signals strong book quality and institutional support for the IPO. These commitments, combined with the absence of pre-listing disposals by major shareholders, indicate a high level of confidence in the company’s prospects and suggest the potential for robust first-day trading performance.

Deal Parties & Structure: Leading Banks at the Helm

The IPO is managed by a consortium of reputable investment banks and underwriters, including:

• Joint Sponsors: Sinolink Securities (Hong Kong) Company Limited and Maxa Capital Limited
• Joint Global Coordinators / Bookrunners / Lead Managers: Sinolink Securities (Hong Kong) Company Limited, Maxa Capital Limited, ABCI Securities Company Limited, CCB International Capital Limited, CMBC Securities Company Limited, CMB International Capital Limited, Get Nice Securities Limited, Huaan Securities (Hong Kong) Brokerage Limited, ICBC International Securities Limited, Tiger Brokers (HK) Global Limited, Fortune Origin Securities Limited, Glory Sun Securities Limited, Grand China Securities Limited, Lego Securities Limited, Mont Avenir Capital Limited, SPDB International Capital Limited

The presence of multiple leading financial institutions and a fully underwritten offering provide strong support for the listing day performance.

Company Overview: Zhihui Mining’s Business Model and Market Position

Zhihui Mining is a leading Chinese mining company, with a primary focus on zinc, lead, and copper exploration and production. The company operates mainly in Xizang (Tibet) and has established itself as a key player in the nonferrous metal mining sector. Its revenue streams are driven by the sale of concentrate products to nonferrous metal traders and refineries across China.

Key products: Zinc, lead, and copper concentrates

Customer segments: Nonferrous metal traders and refineries

Geographic focus: Primarily Xizang, with ambitions to expand to other regions of China

Industry size and definition: The Chinese nonferrous metals industry is large and fragmented, with Zhihui Mining holding an active and reliable position within its regional market.

Financial Health: Multi-Period Performance Overview

Zhihui Mining’s financials demonstrate a stable platform for future growth, with sufficient distributable reserves and a healthy balance sheet. The company had RMB458.4 million in distributable reserves as at 31 July 2025.

As of the date of the prospectus, there had been no material adverse change in the company’s business, financial, or trading position since 31 July 2025.

Market Position and Competitive Advantages

Zhihui Mining is positioned as an active and reliable mining company in a fragmented regional market. The company’s competitive strengths include:

• Strong presence in Xizang and plans for expansion in other regions
• Efficient logistics and inventory management
• Reputation for reliability among regional nonferrous metal buyers
• Solid sales network

Management Team

The company is led by an experienced Board of Directors, overseen by a General Manager and supported by an Audit Committee. Key executives and directors are named in the prospectus, with relevant experience in mining, finance, and operations.

Trends, Timing & Market Environment

Sector trends remain favorable, with robust demand for nonferrous metals in China’s industrial landscape. Macroeconomic measures by the Chinese government to manage economic growth and regulatory developments are cited as key influencers. The IPO comes at a time of active capital markets and ongoing investor appetite for resource-driven growth stories.

Key offer dates:

• Application opens: 9:00 a.m., 11 December 2025
• Application closes: 12:00 noon, 16 December 2025
• Price determination: by 12:00 noon, 17 December 2025
• Results announcement: no later than 11:00 p.m., 18 December 2025

Market conditions are favorable for the listing, with strong cornerstone participation, a fully underwritten structure, and no reported sector headwinds at the time of offering.

Risk Factors

Key risk exposures highlighted in the prospectus include:

• Commodity price volatility impacting revenue and profitability
• Regulatory changes in mining and environmental standards
• Customer concentration and exposure to a limited number of buyers
• Operational risks related to logistics, inventory, and production
• Macroeconomic fluctuations in China
• No prior public market for H Shares, which may result in price volatility post-listing
• Reliance on key personnel and management continuity

Forward-looking statements are explicitly qualified by cautionary language, and investors are warned not to place undue reliance on projections or management commentary.

Growth Strategy

Zhihui Mining’s strategic plans include:

• Expanding its footprint in Xizang and other regions of China
• Strengthening its sales and logistics network
• Pursuing new project developments and increasing capacity
• Enhancing reputation and market share via quality and efficiency

Use of IPO proceeds is tightly aligned with these objectives, underpinning a focused expansion and modernization drive.

Ownership & Lock-Ups

Pre-IPO, Zhihui Mining’s controlling shareholders hold all domestic shares (365,853,659), which will not be converted to H Shares or included in the public float. Upon listing, public shareholders will hold 121,952,000 H Shares (25% of total issued shares). Lock-up periods apply:

• Controlling shareholders: 6-month lock-up on disposals; further 6 months restriction if disposal would lead to loss of control
• Cornerstone investors: 6-month lock-up
• No employee share options or ESOPs disclosed as of the prospectus date

Listing Outlook: First-Day Trading and Value Proposition

Based on cornerstone participation, the underwritten nature of the offer, strong institutional support, and a clear growth narrative, Zhihui Mining’s IPO appears well-positioned for a positive first-day performance. The large cornerstone allocation and lock-ups are expected to support price stability. The fully electronic application process is likely to broaden retail access and participation. Given these factors, the IPO appears attractive for investors seeking exposure to China’s mining sector, with the offer price likely to be supported in the early days of trading.

Prospectus Access

The full prospectus and related documents are available at: www.hkexnews.hk and zhihuimining.com

How to Apply for Shares

Applications may be made electronically via the White Form eIPO service at www.eipo.com.hk or through the HKSCC EIPO channel by instructing your broker or custodian (HKSCC Participant) to submit an electronic application through HKSCC’s FINI system. The application window opens at 9:00 a.m. on 11 December 2025 and closes at 12:00 noon on 16 December 2025. Only electronic applications are accepted; no printed forms or physical channels are available.