Jinchuan Group International Resources Co. Ltd (Jinchuan Intl) disclosed the key findings of an independent internal control review and a subsequent follow-up assessment mandated by the Hong Kong Stock Exchange’s resumption guidance.
The independent Internal Control Consultant assessed both entity-level governance and process-level controls, selecting samples from FY2025. While the consultant confirmed that the company maintains comprehensive policies covering Listing Rules compliance, risk assessment and anti-fraud measures, several operational gaps were identified—primarily in vendor onboarding, documentation retention, conflict-of-interest checks and cash management.
• High-priority issue: Payments were previously made to bank accounts not belonging to registered vendors or, in some cases, to staff accounts, breaching Ruashi Mine’s fund-management policy. • Medium-priority issues: Weak monitoring of subsidiaries, insufficient staff training, incomplete vendor data in the Delta accounting system, undocumented urgent procurements and inadequate retention of payment evidence. • Low-priority issue: Vendor performance evaluations lacked formal documentation.
All recommendations—including real-time access to subsidiary accounting systems, stricter vendor onboarding protocols, heightened conflict-of-interest screening, legal consultation for government-related matters and rigorous document-retention rules—have now been adopted or implemented. The follow-up review dated 2 June 2026 confirmed that the previously identified weaknesses have been “adequately addressed.”
The Audit Committee and the Board concur with the consultant’s conclusions and state that Jinchuan Intl’s current internal controls are sufficient to meet Listing Rules requirements.
Despite the remediation, trading in Jinchuan Intl’s shares has been suspended since 28 March 2025 and will remain halted until further notice. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.