CHI KINGSTONE (01380.HK): Enters into strategic cooperation MOU with First Asia and First Gold Shop to explore vertical integration along the gold value chain

NewTimeSpace News: On 10 August 2026, China Kingstone Mining Holdings Limited (stock code: 01380) published a voluntary announcement, announcing that on 7 August 2026 the Company entered into a memorandum of understanding (the "MOU") with First Asia Merchant Bullion Limited ("First Asia") and First Gold Shop Holdings Group Limited ("First Gold Shop"), setting out a framework for the parties to explore potential cooperation opportunities with a view to establishing a long-term strategic cooperation relationship and achieving mutually beneficial commercial benefits. The cooperation scopes to be explored under the MOU cover multiple segments of the gold value chain, including gold supply (the Company may supply First Asia with gold possibly sourced from its mining operations on commercial terms to be mutually agreed, for trading and retail purposes, while retaining the right to freely sell its gold to any third party), gold refining, retail investment (exploring the development and expansion of gold shop retail business to enter the South Asian market), comprehensive strategic cooperation (cross-marketing, business expansion, joint participation in industry activities and sharing of market information), gold recycling, and the provision of gold price hedging and risk management services by First Asia to the Company, with First Asia and First Gold Shop also exploring potential investments in the Company on mutually agreed terms.

The announcement noted that all the cooperation scopes above are preliminary intentions only, subject to further negotiation and the execution of legally binding final agreements, and no business cooperation will be legally binding until such agreements are signed. The Group is exploring opportunities to expand its business into gold mining, including in connection with the proposed Chilean gold mining project; if final agreements are reached and implemented, the strategic cooperation may enable the Group to establish direct access to end markets through First Asia's trading and retail channels, participate in potential brand retail platforms targeting the South Asian market, obtain institutional-grade hedging and risk management services, and explore opportunities in the gold recycling and reuse business. The Board considers that exploring vertical integration under the MOU may be in the interests of the Company and its shareholders as a whole.

According to the announcement, the Group is principally engaged in the production and sale of crushed limestone in the PRC; First Asia is a company incorporated in Hong Kong principally engaged in precious metals trading, being an AA-class member (member no. 114) of the Hong Kong Gold Exchange; and First Gold Shop is the owner and developer of the "First Gold Shop" brand, engaged in the development and expansion of precious metals and jewellery retail business. Based on all reasonable enquiries made by the directors, First Asia, First Gold Shop and their respective ultimate beneficial owners are third parties independent of the Company and its connected persons. The MOU is not legally binding on the parties (except for the provisions on confidentiality, governing law, dispute resolution and term), is valid for 12 months from the date of this announcement and will expire on 6 August 2027; the strategic cooperation contemplated under the MOU, if implemented, may or may not constitute a discloseable transaction of the Company under the Listing Rules, and the Company will make further announcement(s) in due course in accordance with the Listing Rules.

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