Longking to borrow from affiliate, update governance ahead of 2025 meeting

Fujian Longking's subsidiary, Zijin Longking International (Hong Kong), plans to borrow up to $150m or equivalent RMB from Zijin International Capital, a subsidiary of controlling shareholder Zijin Mining Group. The one-year loan, with an interest rate not exceeding 7.5% (referenced to SOFR), aims to meet operational and project funding needs. The transaction, classified as a connected transaction, was approved by the board of directors with associated members abstaining and awaits shareholder approval.

Additionally, Longking is implementing significant governance changes, including abolishing the supervisory board, with its functions transferred to the board's audit committee. This aligns with new company law and regulatory guidelines. The company also approved engaging in commodity hedging for lithium carbonate and cathode copper to mitigate price volatility, committing up to RMB 30m in contract value.

These measures, approved by the board and its committees, are intended to enhance financial stability, optimize asset-liability structure, and improve operational efficiency. The proposed amendments to the articles of association and other internal policies will be submitted to shareholders for approval at an extraordinary general meeting on November 7, 2025.