An accident occurred during underground slag removal operations at a development mine site of Zhaoyuan Jintingling Mining Co., Ltd., a wholly-owned subsidiary of ZHAOJIN MINING (01818.HK). The incident resulted in three fatalities and two injuries, with the injured reported to be in stable condition. Post-accident handling and investigation are currently underway.

In response to the accident and following requirements from local emergency management authorities, all production mines of the group in the Zhaoyuan area have suspended operations for inspection. The company is assessing the impact of this incident on its overall operations.

The company's board of directors expressed deep condolences for the lives lost, extended sincere sympathies to the families of the deceased, and apologized for the societal impact caused.

According to a notification from the Zhaoyuan Emergency Management Bureau, the accident occurred around 1:00 AM on May 13.

ZHAOJIN MINING's stock price fell sharply following the news, dropping over 14% at one point during the trading session. It closed down 10.4% at HKD 25.3 per share.

According to the company's annual report, ZHAOJIN MINING is a comprehensive gold producer and smelter engaged in exploration, mining, processing, and smelting. Its main products are "9999 gold" and "9995 gold" standard gold ingots.

Zhaoyuan Jintingling Mining Co., Ltd. was established in October 2002 with a registered capital of CNY 545 million. Its primary business is gold mining and processing. In 2025, the company obtained its work safety production license, transitioning from a development phase to a production phase. As of December 2025, the company's proven and controlled gold ore resources amounted to 1.28 million tonnes, containing 1.11 tonnes of metal.

This marks the second fatal accident at a ZHAOJIN MINING subsidiary this year. The company previously announced on February 10 that a cage drop accident occurred in a blind shaft at the Shangzhuang mining section of its Canzhuang Gold Mine, resulting in seven fatalities.

That earlier accident was reported to have occurred at 8:50 AM on February 7. It was reported that the company did not report the incident promptly. The Zhaoyuan Emergency Management Bureau only confirmed the accident on February 9 after receiving a tip, leading to 11 individuals, including the mine manager and chief engineer of Canzhuang Gold Mine, being placed under control.

Regarding financial performance, ZHAOJIN MINING reported revenue of approximately CNY 18.056 billion for 2025, representing a year-on-year increase of about 56.32%. Net profit was approximately CNY 4.44 billion, an increase of about 139.81% year-on-year. Profit attributable to owners of the parent company was approximately CNY 3.614 billion, a year-on-year increase of about 149.10%. For the first quarter of 2026, the company's revenue was CNY 4.460 billion, an increase of over 46% year-on-year, and net profit attributable to owners of the parent company was CNY 1.189 billion, an increase of over 80% year-on-year.