Good News on Listing | Frost & Sullivan Assists Yunnan Jinxun Resources Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (3636.HK)

Yunnan Jinxun Resources Co., Ltd. (hereinafter referred to as 'Jinxun Resources') successfully listed on January 9, 2026. The company plans to issue 3,676.56 million shares, including 3,308.9 million shares for international sale and 367.66 million shares for public sale. The issue price per share is HK$30, raising a net amount of approximately HK$1.0426 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data, from January to December 2025, and over the past 36 months, Frost & Sullivan provided listing industry advisory services for 83 (accounting for 72%) and 180 (accounting for 71%) Hong Kong-listed IPOs, ranking first in terms of number. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• The company has a strong business presence in resource-rich regions of Africa (especially the Democratic Republic of the Congo (DRC) and Zambia), with high investment returns;

   

• The company's strategic capacity layout in resource-rich regions aligns with the 'going global' strategy;

   

• The company's efficient raw material utilization and industry-leading technical capabilities drive cost control;

   

• The company's strong service capabilities attract leading customers in the industry;

   

• The company has an experienced management team with extensive industry expertise.

According to a report by Frost & Sullivan:

• In 2024, by production volume, Jinxun Resources ranked fifth among the top five Chinese cathode copper producers in the Congo (Kinshasa).

   

• In 2024, ranked by production volume, Jinxun Resources ranked fifth among the top five Chinese cathode copper producers in Zambia.

Non-ferrous metals refer to all metals except iron, manganese, and chromium, and are a category of metals with a wide range of industrial uses. Non-ferrous metals can be divided into base metals (such as copper, aluminum, lead, zinc), precious metals (such as gold, silver,Platinum group metalsNon-ferrous metals (such as cobalt, lithium, tungsten, molybdenum) are divided into light metals (such as aluminum, magnesium) and heavy metals (such as copper, lead) based on density. The diversity of non-ferrous metals makes them widely used in various industrial fields and is an important pillar for modern industrial production and scientific and technological development.

Non-ferrous metals, as an important pillar of modern industrial systems, play a key role in fields such as power generation, construction, transportation, and manufacturing, providing crucial support for the development of traditional industries and infrastructure. For example, copper, with its excellent electrical and thermal conductivity, becomes the main material for power transmission and electronic products; aluminum, with its lightweight and high-strength characteristics, is widely used in the automotive, aerospace, and construction sectors. In addition, non-ferrous metals are also crucial in emerging industries such as new energy, electronics, and intelligent manufacturing. Lithium and cobalt are the core components of lithium batteries, forming the basis for new energy vehicles and energy storage systems; rare earth metals, as key materials for manufacturing high-performance magnets, lasers, and wind turbines, drive technological progress and industrial upgrading. Moreover, the unique properties of non-ferrous metals make them of strategic significance in high-tech and national defense fields. Titanium alloys are favored for their strength and corrosion resistance and are widely used in aerospace and naval equipment; precious metals such as platinum and gold play a crucial role in catalysts and semiconductor manufacturing, supporting national innovation and security.

Global major non-ferrous metal reserves refer to the economically exploitable quantity of major non-ferrous metals, that is, the quantity of major non-ferrous metals recognized as extractable under current technical and economic conditions. Global major non-ferrous metal reserves have remained relatively stable over the past years. From 2020 to 2024, global major non-ferrous metal reserves decreased from 39.6 billion tons to 38.7 billion tons, with a compound annual growth rate of -0.6%. This reduction may be attributed to accelerated industrial consumption during the post-pandemic recovery period, supply chain disruptions, and insufficient mineral exploration investment. Looking ahead, with stable global investment in exploration activities in resource-rich regions such as South America and Africa, as well asDeep Earth ImagingDriven by advancements in geological exploration technologies such as remote sensing, the global reserves of major non-ferrous metals are expected to increase to 39.9 billion tons by 2029, with a compound annual growth rate of 0.7% from 2025 to 2029.

In recent years, due to increasing infrastructure investment and the growing demand for major metals by renewable energy technologies, the global production of major non-ferrous metals has shown a steady upward trend, increasing from 46.65 million tons in 2020 to 52.43 million tons in 2024, with a compound annual growth rate of about 3.0%. This growth has been further driven by the acceleration of urbanization, the transformation to clean energy, and the increasing demand for materials such as copper, aluminum, and lithium from electric vehicles and energy storage systems. It is expected that by 2029, global production of major non-ferrous metals will reach 6.11 billion tons, with a compound annual growth rate of 3.2% starting from 2025.

●The new energy industry has driven rapid growth in demand

The rapid development of the new energy industry (especially in electric vehicles, energy storage, and photovoltaics) has greatly driven the demand for non-ferrous metals such as copper, cobalt, and aluminum. Copper plays an irreplaceable role in electrical equipment and batteries; cobalt is a key raw material for manufacturing lithium battery cathodes; and aluminum, with its lightweight and corrosion-resistant properties, has become an important material for electric vehicles. As the world accelerates its transition towards green energy, it is expected that the demand for these metals will continue to grow at a high rate.

●Technological progress drives the expansion of high-end applications

The technological progress in high-end fields such as 5G communications, artificial intelligence, and aerospace continuously raises the performance requirements for non-ferrous metals, thereby expanding their application scope and driving overall demand. Breakthroughs in these fields require advanced material properties. For example, ultra-high purity copper for low-loss signal transmission in 5G infrastructure, special aluminum alloys for AI server thermal management, and cobalt or rare earths with precise magnetism for semiconductor manufacturing and high-efficiency motors. As innovative technologies empower new-generation applications such as microchips, satellite systems, and solid-state batteries, they not only expand the consumption of non-ferrous metals in emerging industries but also strengthen material specification requirements. This development has given rise to demand for high-value-added products, which refer to high-quality non-ferrous metals or components that meet extreme technical standards, such as those used for aerospace structures.Radiation-resistant aluminum materialOr nanostructured rare earth magnets used in electric vehicle transmission systems. Due to strict purity thresholds, specialized processing, and their key role in realizing high-profit technologies, these products are significantly more expensive, thereby transforming raw materials into cost-effective solutions.

●Deepen global industrial chain cooperation

The production and consumption of the non-ferrous metals industry are highly globalized, with the synergistic effect between upstream mineral resources and downstream processing industries increasingly strengthened. For example, the rich copper and cobalt resources in Africa and South America complement major manufacturing and processing centers such as China. At the same time, deeper international cooperation and technical exchanges have further improved industry efficiency and resource utilization rates.

Copper is a chemical element with a unique rose-red metallic luster. It has become one of the earliest metals known to mankind due to its excellent electrical conductivity, thermal conductivity, corrosion resistance, and ductility, and is widely used in the manufacture of various products such as electrical and electronic components, building materials, and machinery.

Cathode copper is a high-purity copper produced through pyrometallurgy or hydrometallurgy refining methods. Cathode copper, with its excellent electrical conductivity, thermal conductivity, and ductility, has become an important raw material in global industrial production, playing a pivotal role in the global industrial environment. It is widely used in key sectors such as infrastructure, consumer electronics, construction, and transportation. In the field of new energy, cathode copper plays a crucial role in green energy applications such as electric vehicles, wind energy, and solar energy due to its high purity. Further considering the strategic position of cathode copper within the global economic framework, as an important trade commodity in the international non-ferrous metals market, it not only reflects the global economic situation through its supply and demand dynamics and price fluctuations but also profoundly influences the pulse of industrial upgrading.

Copper has become a major industrial metal due to its high ductility, malleability, thermal conductivity, electrical conductivity, and corrosion resistance. Copper is used as a core material for manufacturing important products and infrastructure in fields such as power transmission, electronic devices, construction, transportation, and renewable energy technology. Global copper reserves have increased from about 8.7 million tons in 2020 to about 9.8 million tons in 2024, with a compound annual growth rate of 3.0%. The main countries with copper reserves include Chile, Peru, Australia, and the Democratic Republic of the Congo (DRC), among others. In Africa, copper reserves are mainly concentrated in the DRC and Zambia. As of 2024, the copper reserves of the DRC and Zambia account for about 10% of global copper reserves.

Copper reserves depend on geological conditions and are mainly concentrated in areas rich in copper deposits. Production is affected by factors such as technical capabilities, industrial infrastructure, policy environment, and market demand, often concentrating in regions with strong processing capacity and a large consumer market. This difference leads to a gap between copper reserves and production, thereby driving global copper trade. For example, resource-rich countries export copper concentrates, while industrialized countries process them into cathode copper. This phenomenon also prompts countries to optimize production layouts through technological upgrading and policy adjustments. With the continuous development of the global economy, copper demand continues to grow, driving a sustained increase in global copper production. Global copper production has increased from 2.06 million tons in 2020 to 2.30 million tons in 2024, with a compound annual growth rate of 2.8%. It is expected that global copper production will increase from 2.30 million tons in 2025 to 2.70 million tons in 2029, with a compound annual growth rate of 4.1%. The major countries with global copper production include Chile, the Democratic Republic of the Congo (DRC), Peru, and China. In Africa, copper production is also mainly concentrated in the DRC and Zambia. As of 2024, the copper production of the DRC and Zambia accounted for about 18% of global copper production.

The main countries in global cathode copper production include China, the Democratic Republic of the Congo (DRC), and Zambia. Driven by abundant reserves, increased Chinese investment, and expanded local production capacity, the cathode copper production of the DRC and Zambia will reach 1,800.0 thousand tons and 640.0 thousand tons respectively in 2024. As of 2024, the cathode copper production of the DRC and Zambia accounts for about 11% of global cathode copper production. Looking ahead, it is expected that by 2029, the cathode copper production of the DRC will exceed 3,500 thousand tons, with a compound annual growth rate of 16.7% starting from 2025. In addition, with the continuous upgrading of infrastructure and diversified energy investments, Zambia's cathode copper production will also rebound from the previous decline due to power shortages, expected to exceed 1,000 thousand tons by 2029, with a compound annual growth rate of 10.8% starting from 2025. Driven by structural advantages and changing market dynamics, the cathode copper production of the DRC and Zambia is bound to gain a firm foothold in the global market.

The average grade of copper ore in the Democratic Republic of the Congo (DRC) and Zambia is much higher than the global average, giving these countries a significant competitive advantage in the global copper industry. Although the global average grade of copper ore usually ranges between 0.4% and 0.6%, the grades in DRC and Zambia typically exceed 2%, especially in high-quality sulfide and oxide reserves. The higher the grade of ore, the lower the unit production cost, the higher the metal output per ton processed from ore, and the greater the economic feasibility of mining projects. Therefore, both countries have attracted strong investment interest and play a crucial role in providing stable and high-grade raw materials for global smelters, consolidating their strategic importance in the copper supply chain.

In addition, due to Zambia's reliance on favorable labor and energy costs such as hydropower, the production base costs in this region are relatively low. This enables local producers to offer competitively priced cathode products in the global market. With trade routes established to major global consumers and growing interest in downstream industries such as electric vehicles and renewable energy, cathode copper from the Democratic Republic of the Congo (DRC) and Zambia is increasingly highlighting its strategic importance. As both countries continue to invest in infrastructure, compliance, and capacity expansion, their status as competitive and reliable cathode copper suppliers is expected to be significantly strengthened starting from 2025.

●The new energy industry is growing rapidly

With the global acceleration of transition towards green energy, new energy sectors such as electric vehicles, wind power, and photovoltaic energy have developed rapidly, greatly driving demand for cathode copper. Copper, with its excellent electrical and thermal conductivity, has become a key material for electric vehicle motors, charging stations, photovoltaic systems, and wind power generation equipment. In particular, the amount of copper required per electric vehicle is about 2.5 to 4 times that of traditional internal combustion engine cars, mainly due to the widespread use of copper in batteries, wiring, and power electronics devices. The expansion of global electric vehicle production, coupled with encouraging policies for renewable energy, is expected to drive steady growth in copper demand. In addition, large-scale investments in grid and energy storage solutions to support the integration of renewable energy further promote the growth in copper consumption. Government measures such as tax incentives for electric vehicle purchases, subsidies for charging infrastructure, and regulations to increase renewable energy capacity continue to create strong prospects for cathode copper demand. For example, from January 1, 2024, to December 31, 2025, vehicle purchase taxes will be exempted for new energy vehicles purchased in China. The tax exemption limit for each new energy passenger vehicle is RMB 30,000. In terms of the energy storage industry, according to the US Inflation Reduction Act ("IRA accountEnergy storage projects can obtain up to 30% investment tax credit ("ITC"). Considering these factors, the cathode copper market will continue to be a key driver for clean energy transformation.

●Urbanization and infrastructure development

The ongoing global urbanization process and large-scale infrastructure projects provide long-term support for the demand for cathode copper. Cathode copper is renowned for its excellent electrical conductivity and corrosion resistance, and is widely used in power infrastructure. It is a key material for manufacturing components such as cables, transformers, and distribution equipment, ensuring efficient and stable power transmission. In addition, cathode copper is also used in pipeline systems, roofing waterproof materials, and communication network infrastructure construction, improving durability and signal transmission efficiency, thereby contributing to the development of smart cities. In developing countries, especially regions such as Africa, Southeast Asia, and Latin America, rapid urbanization is driving the expansion of power grids, water supply systems, and transportation networks, all of which consume a large amount of copper. For example, electrification in rural areas of emerging markets has increased copper consumption in power lines, transformers, and substations. At the same time, the aging infrastructure of developed economies requires large-scale upgrades of power grids, high-speed rail systems, and broadband networks. Many countries have announced large-scale infrastructure investment plans, such as the U.S. Infrastructure Investment and Jobs Act and China's Belt and Road Initiative, both emphasizing sustainable infrastructure and smart cities, further driving copper demand. Moreover, with buildings adopting more energy-efficient designs, copper-intensive systems such as HVAC (heating, ventilation, and air conditioning) and smart home wiring are becoming increasingly common, further enhancing the indispensable role of cathode copper as a key material in global urbanization and infrastructure expansion.

●Digitization and technological progress

The adoption of digital technology and advancements in manufacturing processes are transforming the cathode copper industry, enabling the entire supply chain to achieve efficiency improvements and value creation. The integration of big data, AI, and the Internet of Things (IoT) has optimized key processes such as copper ore exploration, smelting control, and logistics management. AI-driven geological surveys have improved mineral exploration efficiency, enabling more precise identification of copper deposits and reducing mining costs. Intelligent automation in copper smelters has improved metallurgical processes, ensuring higher purity cathode copper output while reducing energy consumption and emissions. Leading cathode copper companies are using machine vision and sensor technology to automatically detect indicators such as the thickness and surface defects of cathode copper plates, thereby ensuring product consistency and reducing manual intervention. In addition, blockchain technology is increasingly being applied in the cathode copper industry to enhance supply chain traceability, improve transparency in copper procurement, and ensure compliance with environmental and mining ethical standards. For cathode copper producers, this not only helps improve pricing and entry into strategic markets but also contributes to building reputation value in a more sustainable environment. In addition to procurement, technological progress has also driven the production of high-purity cathode copper and process innovation (such as AI-based process control and low-carbon refining), improving conductivity and reducing energy intensity. As digitization reshapes the non-ferrous metals industry, the cathode copper industry will benefit from operational efficiency improvements, traceable compliance, and product quality enhancements, consolidating its strategic position in the global electrification and clean energy supply chains.

In 2024, the annual output of cathode copper in Congo (Kinshasa) was about 1.8 million tons, with the top five Chinese producers accounting for more than 20%. In Congo (Kinshasa), our company's output was 15,900 tons, ranking fifth in the industry. In terms of production volume, our company ranks third among private producers in Congo (Kinshasa)'s cathode copper industry.

In 2024, Zambia's annual cathode copper production is expected to be about 640,000 tons, with the top five Chinese producers accounting for more than 25%. In Zambia, our company produces 5,000 tons, ranking fifth in the industry. Our company ranks first among private producers in China. Our company is also the only cathode copper producer in China that has made it into the top five in both the Democratic Republic of the Congo (Kinshasa) and Zambia.

In the cathode copper industry in the Democratic Republic of the Congo (DRC) and Zambia, Chinese-funded enterprises account for over 50% of the total production, while the remaining output is produced by international mining groups operating across multiple continents with a diversified metal portfolio. Their business focus spans South America, Africa, and Australia. In contrast, Chinese-funded enterprises have a more concentrated business layout in the African copper industry and operate more transparently overall.