Shandong Jinling Mining Co., Ltd. decided to transfer its Dazhang iron ore exploration rights and supporting assets to its wholly-owned subsidiary Shandong Jinshun Mining Co., Ltd. at no cost. The company's board approved the proposal on September 22.

Jinling Mining said the transfer is a strategic decision aimed at streamlining project management, enabling specialized and localized independent operation of the iron ore exploration project, optimizing internal resource allocation and improving operational efficiency.

The transfer is an internal resource integration within the company's consolidated financial statements and will not adversely affect its operating results or harm shareholder interests, the company said.

Jinling Mining established Jinshun Mining on June 26 to take over the Dazhang iron ore exploration rights in Qihe county and to manage follow-up geological exploration and related work on a localized basis.

The transfer uses August 31, 2026 as the benchmark date. Preliminary estimates put the book value of the asset package at 160.76 million yuan ($22.05 million), unaudited.

The company said the transfer is an internal transaction with a wholly-owned subsidiary and does not constitute a major asset restructuring or a related-party transaction under relevant regulations.

Under Shenzhen Stock Exchange listing rules and the company's articles of association, the matter falls within the board's approval authority and does not require shareholder approval.

After the transfer, Jinling Mining will continue to hold 100% equity in Jinshun Mining, and exploration-related expenses will be borne by Jinshun Mining.