Our analysis and judgment (1) Xinzhou Mining Asset Injection Commitment On April 25, 2014, Jianxin Group and Liu Jianmin promised: After the 45% equity asset securitization matter held by Jiugang Group, the majority shareholder of Gansu Xinzhou Mining Co., Ltd. is approved by the authorized state capital department, Xinzhou Mining completes relevant procedures and warrants, and within one year after meeting the evaluation conditions, 40% of Xinzhou Mining's shares held by Jianxin Group will be injected into the listed company. It is expected that the injection of this asset will be completed no later than 2017; if not completed in 2017, Jianxin Group will agree to go public with compensation The company is 20 million yuan while withdrawing its commitment to inject this asset. In April 2015, the company received a letter from the controlling shareholder. All shareholders of Xinzhou Mining agreed to inject their respective shares in Xinzhou Mining into the listed company at the same time. However, the act and process of transferring shares by listed companies can only be implemented after the state-owned shareholders of Xinzhou Mining have completed the relevant state-owned assets disposal procedures. Currently, shareholders are stepping up this procedure and striving to start the Xinzhou Mining injection matter as soon as possible. Xinzhou Mining is a mature tungsten mine Xinzhou Mining was established on August 4, 2005, with a registered capital of 227.7653 million yuan. Its main business is tungsten, molybdenum, and copper mining, processing and sales. Xinzhou Mining has a tungsten ore mining capacity of 270,000 tons/year, and has obtained mining rights and prospecting rights in the Xiaoliugou tungsten and molybdenum mining area, and prospecting rights in the Ouniugou coal mine area. (2) Inject 100% of the shares of Zhongxi Mining by the end of 2016 Inner Mongolia Zhongxi Mining Co., Ltd. will inject 100% of the company's shares into the listed company by the end of 2016. Zhongxi Mining is a large-scale mature molybdenum mine. According to information from the Trade Association on August 3, 2015, from January to June 2015, Zhuozi County Zhongxi Mining Co., Ltd. produced a total of 1,746 tons of molybdenum powder, processed a total of 1,735 million tons of raw ore, sales revenue of 167.92 million yuan, and achieved revenue of 29.54 million yuan. Among them, the plant stopped production throughout the month in February and March, and resumed production around April 1. The price of molybdenum powder in April was 5 million tons. An expansion project is under construction and is expected to be officially put into use in September. According to the official website of Zhongxi Mining, the company has prospecting rights with an area of 4.18 km2 and a mining rights area of 1.68 km2. As of 2010, it has now discovered 150,000 tons of molybdenum metal resource reserves, 3.53 tons of associated gold, 24.79 tons of silver, 113 million tons of ore, and an average grade of 0.133%. Since the boundary of the ore body has not yet been fully controlled, peripheral and deep prospecting continues. The estimated reserves are over 200,000 tons. The deposit is a shell-derived porphyry molybdenum deposit, ranking first among similar mines in the country. The mine was founded in 2005, and Jianxin Group integrated resources and equity restructuring in 2008. Approved by the Economic Commission of the Autonomous Region, 2.2 billion yuan was invested to carry out the technological transformation of the procurement project. The project was designed by the Changsha Nonferrous Metallurgy Design Institute. Construction began in May 2010, and trial production began at the end of August 2012. It is a key industrial construction project in Inner Mongolia Autonomous Region and Wulanchabu City. The actual production scale of the enterprise will reach 5 million tons, with an annual output of 12,000 tons of molybdenum concentrate, 6,000 tons of metal, and an annual output value of 1.5 billion yuan. It will generate 300 million yuan in tax revenue for local finance and provide 1,500 jobs for social employment. Simultaneously with the construction of the mining and selection project, research, verification and project construction of the molybdenum concentrate deep processing project has already been carried out. At that time, the output value of the enterprise will reach more than 2.5 billion yuan. The technical improvement project is expected to be completed by the end of 2014. According to the current price of 12,000 tons of molybdenum concentrate, the sales revenue is about 500 to 600 million yuan. Taking into account by-product output, the sales revenue of the Chinese and Western mining industries will increase slightly. Since 2010, the company is still under investigation, and the author expects the mine reserves to increase compared to 2010. (3) Jinde Chengxin expects to inject Shanxi Jinde Chengxin Mining Co., Ltd. into listed companies within 2 years after the company is completed and put into operation in 2017, and is expected to be injected into listed companies in 2017. According to the detailed geological survey in 2010, it was discovered that the molybdenum ore reserves in the mining area were 314 million tons, and the molybdenum metal reserves were 171,000 tons. The development of the Houyu copper and molybdenum mine in Fanzhi County was carried out through open pit mining, and a 10 million tons/year molybdenum ore technology improvement and selection project, 300,000 tons/year sulfuric acid production line, and a deep processing project for molybdenum products were built. The construction of the project is divided into two phases. The first phase will build a 5 million tons/year molybdenum extraction technology improvement project and a 300,000 tons/year sulfuric acid production line and a molybdenum product deep processing project; the second phase will build a 5 million tons/year molybdenum extraction technology improvement project. 2010/11/29 According to information from Jinde Chengxin's official website, after completion of the 5 million tons/year mining and selection technology improvement project for the Fanzhi Houyu Copper and Molybdenum Mine, it is estimated that 4.5 billion yuan will be invested to build a 10 million tons/year molybdenum ore technical improvement project, a 300,000 tons/year sulfuric acid production line, and a molybdenum product deep processing project. After the completion of the project and delivery, it is expected to achieve sales revenue of 3 billion yuan, profits and taxes of 1.2 billion yuan, and provide more than 2,000 local jobs. The investment suggests that the company has excellent fundamentals, takes into account the predictable injection of tungsten and molybdenum resources, and the injection into large-scale mature mines. Currently, A-shares have given higher valuations to listed companies in the molybdenum and tungsten industry. We judge that the price difference between the secondary market and the primary market for tungsten and molybdenum resources is still huge. After the resources are injected, the valuations of listed companies will increase dramatically, and the company will be given a recommended rating. Zinc prices have risen 27% year to date, and the shortage of zinc ore is increasing. It is expected that the rise in zinc prices will continue to be very sustainable. In 2015, zinc prices were sluggish, and it was still possible to obtain 284 million yuan of net profit after deducting non-return net profit. Net profit is expected to improve significantly this year. Mine reserves have increased by more than 50%. Mines contain cobalt, and there is room for imagination in capital management. Currently, the market value is only 11.4 billion yuan. The risk suggests a sharp drop in lead and zinc prices.