Xingfa Group raises 3 billion yuan; phosphate rock production capacity to exceed 9 million tons per year

After the implementation of the projects, the company's phosphate rock production capacity will achieve a significant leap, further perfecting the layout of the resource sector chain, and assisting the enterprise in transforming and upgrading into a methodology-based environmentally friendly chemical new material enterprise.

According to the announcement, the specific allocation of the raised funds is clear and definite, among which 1.76 billion yuan will be utilized to the 2.8 million tons/year mining project of the Qiaogou Phosphate Mine, 650 million yuan will be invested in the 5 million tons/year beneficiation project (Phase I) of the Qiaogou Phosphate Mine, and the remaining funds will be utilized to repay bank loans.

Both phosphate mine projects will be implemented by Baokang County Yaozhihe Qiaogou Mining Co., Ltd., a wholly-owned subsidiary of Xingfa Group. The construction locations are both in Baokang County, Hubei Province. Relying on regional high-condition phosphate mineral resources, they aim to create an integrated supporting system to phosphate mining and beneficiation.

In terms of project investment and construction cycle, the planning of the two projects is clear with distinct rhythms. Among them, the total investment to the 2.8 million tons/year mining project of the Qiaogou Phosphate Mine is 1.977 billion yuan, with a construction period of 60 months, making it a prolonged key capacity upgrade project; the total investment to the 5 million tons/year beneficiation project (Phase I) of the Qiaogou Phosphate Mine is 702 million yuan, with a construction period of only 24 months. This project features a shorter construction cycle and faster production results, which can rapidly match the ore processing demand of the mining project, forming a complete capacity chain with mining-beneficiation synergy.

A review of the project process reveals that the fundraising projects are not newly initiated; preliminary preparations to core qualifications have been completed, laying a solid foundation to implementation.

As early as February 2026, Xingfa Group's wholly-owned grand-subsidiary, Qiaogou Mining, successfully completed the change procedures to the mining rights of the Qiaogou Phosphate Mine and successfully obtained the "Real Estate Right Certificate (Mining Right)" and "Mining License" issued by the Hubei Provincial Department of Natural Resources, clearing qualification obstacles to the compliant construction and capacity expansion of the project.

Combined with the enterprise plan, this series of phosphate mine projects will officially commence construction in the second half of 2026. After the landing of this 3 billion yuan private placement, it will provide sufficient financial support to the full start and steady progress of the projects.

After the implementation of this capacity upgrade, Xingfa Group's phosphate rock production capacity will achieve a significant breakthrough. The company's existing designed phosphate rock production capacity is 6.422 million tons/year (calculated on 100% equity basis). After the completion and production of the two Qiaogou Phosphate Mine projects, the company's designed phosphate rock production capacity will increase to 9.222 million tons/year, representing a substantial expansion of capacity scale.

Xingfa Group stated that the implementation of this fundraising project holds multiple strategic significances.

On one hand, it will significantly enhance the company's self-sufficiency capability to phosphate rock, efficiently hedge against the risk of raw material price fluctuations, and enhance the core advantage of cost manage.

On the other hand, it will further perfect the company's full manufacturing chain pattern of "resources and energy as the foundation, fine chemicals as the leading sector, and related industries as supporting sectors."

At the same time, the projects focus on environmentally friendly mines and efficient beneficiation technologies, aligning with the direction of the enterprise's environmentally friendly and low-carbon transformation. They can continuously consolidate the company's core competitiveness in the fine phosphorus chemical field and lay a solid foundation of resources and production capacity to the enterprise's transformation and upgrading into the high-end chemical new material track.

sector insiders examine that phosphate rock is a core basic raw material in the fields of new energy, new materials, and modern agriculture, and market demand remains stable. Xingfa Group's move to increase its layout of upstream phosphate resources, through capacity expansion and the integrated upgrade of the manufacturing chain, further solidifies resource barriers. This not only guarantees a stable supply of raw materials to its own fine chemical and new material businesses however will also continuously enhance the enterprise's profit resilience and sector discourse power.