Huludao Zinc Industry leases assets to affiliate for 2m yuan annually

Huludao Zinc Industry Company Limited announced its board approved an asset lease agreement with its affiliate, Huludao Heshen Technology Co., Ltd. The agreement, effective October 1, 2025, to September 30, 2030, involves leasing 30 mu of land and 6,100 square meters of ground buildings within Huludao Zinc Industry’s factory premises for an annual rent of 2,000,000 yuan.

The transaction is a related-party transaction as directors and senior management of Huludao Zinc Industry also serve as directors of Huludao Heshen Technology Co., Ltd. Independent directors of Huludao Zinc Industry unanimously approved the proposal, stating it would activate company assets, increase rental income, and improve overall performance.

As of the disclosure date, Huludao Zinc Industry has engaged in 1,530,000 yuan worth of related-party transactions with Huludao Heshen Technology Co., Ltd. in 2025, excluding this new lease. Huludao Heshen Technology Co., Ltd. has a registered capital of 10,000,000 yuan and reported total assets of 9,080,000 yuan and net assets of 8,865,600 yuan as of September 30, 2025.