Xingye Silver&Tin: Subsidiary Yinman Mining’s beneficiation plant resumed production on September 3; Yinman Mining’s mining area is making every effort to advance all rectification work.

On September 3, Xingye Silver&Tin's share price declined. As of 13:49 on September 3, Xingye Silver&Tin was up 3.66%, trading at 39.41 yuan per share.

In terms of news: Xingye Silver&Tin announced on the evening of September 2 that at approximately 15:30 on July 26, 2026, an accident occurred during production and construction at its wholly-owned subsidiary Xiwuzhumuqin Banner Yinman Mining Co., Ltd., between points 19-1 and 25-1 of the west main haulage way in the 750 sublevel of Zone 3 underground at the mine, resulting in one fatality and no injuries. After the accident, Yinman Mining received the On-Site Handling Measures Decision ((Xi) Emergency On-Site Decision [2026] No. 257) and the On-Site Handling Measures Decision ((Xi) Emergency On-Site Decision [2026] No. 260) issued by the Xiwuzhumuqin Banner Emergency Management Bureau. As required by the Xiwu Banner Emergency Bureau, Yinman Mining's mining area and beneficiation tailings system were successively shut down. After the accident, Yinman Mining carried out comprehensive and in-depth safety production self-inspections and strictly implemented accident prevention and various rectification measures. Recently, Yinman Mining received the Notice on Approving the Resumption of Production of the Beneficiation Tailings System of Xiwuzhumuqin Banner Yinman Mining Co., Ltd. (Xi Emergency Issuance [2026] No. 102) issued by the Xiwu Banner Emergency Bureau, approving the resumption of production of Yinman Mining's beneficiation tailings system.Yinman Mining's beneficiation plant will resume production on September 3, 2026. Currently, Yinman Mining's mining area is making every effort to advance various rectification work, striving to achieve the resumption of production in the mining area as soon as possible.The company will fulfill its information disclosure obligations in a timely manner in accordance with relevant regulations based on subsequent progress, and reminds investors to pay attention to investment risks.

Xingye Silver&Tin disclosed its 2026 semi-annual report on August 29, showing that in H1 2026, the company achieved operating revenue of 4.281697 billion yuan, up 73.13% YoY; total profit of 2.6111055 billion yuan, up 180.76% YoY; and net profit attributable to shareholders of the publicly listed firm of 2.2630562 billion yuan, up 184.42% YoY. Regarding the reasons for the increase in operating revenue, Xingye Silver&Tin explained:Yubang Mining's capacity was gradually released, with ore-derived silver production and sales increasing YoY, while also benefiting from YoY increases in market prices of main mineral products such as silver and tin.

Xingye Silver&Tin's semi-annual report shows that in H1 2026, the company's main mineral product operating revenue as a proportion of total operating revenue was as follows: ore-derived silver at 2.5106191 billion yuan, accounting for 58.64%; ore-derived tin at 808.2269 million yuan, accounting for 18.88%; ore-derived zinc at 510.5231 million yuan, accounting for 11.92%; ore-derived lead at 136.0437 million yuan, accounting for 3.18%; ore-derived iron at 97.1065 million yuan, accounting for 2.27%; ore-derived copper at 78.5046 million yuan, accounting for 1.83%; ore-derived antimony at 53.9056 million yuan, accounting for 1.26%; ore-derived gold at 67.1535 million yuan, accounting for 1.57%; ore-derived bismuth at 11.4428 million yuan, accounting for 0.27%; and ore-derived indium at 3.0873 million yuan, accounting for 0.07%. Among these,ore-derived tin and ore-derived silver together accounted for 77.52% of operating revenue.

Xingye Silver&Tin also presented the production and sales volumes of mineral products in its semi-annual report:

Regarding the company's main business, Xingye Silver&Tin stated: The company is a large mining group primarily engaged in the exploration, mining, and beneficiation of non-ferrous metals and precious metals. As of the disclosure date of this report, the company has more than 20 subsidiaries, including 8 mining companies in production: Yinman Mining, Qianjinda Mining, Yubang Mining, Rongguan Mining, Xilin Mining, Rongbang Mining, Ruineng Mining, and Bosheng Mining; Atlantic Tin's Achmmach tin mine under Atlas Tin SAS is in the construction phase; Tanghe Shidai Mining is in a suspended construction phase; and Yitong Mining and Yunnan Xigui are in the exploration phase. The business positioning of each platform subsidiary is clear with well-defined responsibilities: Hainan Fund is mainly engaged in equity investment management; Xingye Gold (Hong Kong) is primarily engaged in metals and mining trade and corporate mergers and acquisitions, undertaking the functions of expanding markets outside China and acquiring and integrating high-quality mineral resources; Hainan International Trade and Tianjin International Trade are mainly engaged in the sales of non-ferrous metal mineral products and the procurement of some raw materials; Xingye Ruijin mainly carries out process research, technology R&D, and upgrading in prospecting, mining and beneficiation, and comprehensive tailings recovery and utilization. Tibet Shannan Antimony Gold, Tibet Xinda Mining, and Hinggan League Fuxingtun Mining serve as the company's regional resource integration platforms.

Regarding the company's main operating model, Xingye Silver&Tin stated: The mining rights held by the company are mostly polymetallic, with main products being non-ferrous metals and precious metals such as silver, tin, zinc, lead, iron, copper, antimony, and gold. Currently, sales are primarily in the form of concentrate powder or mixed concentrate powder (concentrates or mixed concentrates) products. To date, the company has focused on its core business of non-ferrous metal resources and has built an integrated business system covering exploration, reserves, development, and trade. Business synergies are being gradually released, helping the company enhance operational stability and solidify its long-term development foundation.

Huaxin Securities' research report on Xingye Silver&Tin shows: Key performance drivers: During the reporting period, the gradual release of Yubang Mining's capacity drove a substantial YoY increase in ore-derived silver production and sales, coupled with YoY price rises for main mineral products such as silver and tin driven by macro and demand factors, leading to a steady improvement in the company's recurring profitability. In addition, the company's transfer of a 60% stake in Shuangyuan Nonferrous contributed a total of 454 million yuan in non-recurring gains and losses, including investment income of 321 million yuan. As Shuangyuan Nonferrous was originally a loss-making entity with excess losses, the parent company's deductible loss amount increased after the equity transfer, correspondingly reducing income tax expenses by 133 million yuan. Yinman Phase II officially commenced construction, with capacity expansion progressing steadily. Construction land for Yinman Phase II was approved by the Inner Mongolia Autonomous Region government on July 14, 2026, and construction officially began on July 19, with commissioning with feed expected in Q4 2028. As the company's core mine, Yinman Mining mainly produces silver, tin, zinc, copper, lead, antimony, and other metal products. After expansion, mining and beneficiation capacity will increase from 1.65 million mt/year to 2.97 million mt/year, with core metal production growing significantly, further solidifying the company's long-term profitability and competitive advantages. Domestic acquisitions plus a dual-track overseas layout are steadily expanding the resource footprint. With silver and tin prices expected to stay high and the company's long-term capacity growth anticipated, the "Buy" investment rating is maintained. Risk warnings: 1) downstream demand falling short of expectations; 2) downside risk in metal prices; 3) the company's capacity expansion release falling short of expectations; 4) the company's acquisition progress falling short of expectations.