Jiayou International (603871.SH): Joint investment with related parties to activate the Tazara Railway project

Gelonghui April 1丨JiaYou International (603871.SH) announced that the company plans to jointly invest in the Tangzan railway activation project with its related party Zijin Jinsheng, as well as with non-related parties China Civil Engineering, Luoyang Molybdenum, and COSCO Hong Kong, through a jointly invested target company, LinkFutureInvestmentLtd. The main contents of this cooperative investment project include carrying out foundational repair and renovation of the railway lines, purchasing new locomotives and rolling stock, etc., and after the repair and renovation are completed, taking charge of operating Tangzan railway freight services.

The total investment amount for this project is $1.24B. All investing parties will contribute in the form of U.S. dollar cash as monetary contributions. The company’s investment amount is $62.15 million, accounting for 5%.

As a key corridor for copper and cobalt mining belts in the Democratic Republic of the Congo (DRC) to reach the sea via Zambia, Tangzan railway plays an important hub role in promoting the flow of regional resources and industrial cooperation. By participating in this project, the company can achieve deep coordination and linkage between its business layout along Tangzan railway and foundational infrastructure such as inland ports, highways, and ports of entry that have already been planned and built in countries including the DRC, Zambia, and Tanzania. At the same time, the project will lay a solid foundation for the construction of supporting facilities along the railway, including railway stations and yards, loading and unloading stacking yards, and overseas warehouses. It will effectively integrate the existing road transportation network, help the company improve its intermodal rail-road transportation service system along the Tangzan railway, thereby further upgrading the company’s cross-border integrated logistics service capabilities across the entire industry chain in Southern-Central Africa, and continuously strengthen the company’s core competitive advantages in the Africa region.

After the capacity of Tangzan railway is improved, cross-border transportation time will be significantly shortened, and loading and transshipment capacity will be substantially enhanced. This will effectively reduce the company’s reliance on road transportation, save long-distance transportation costs, and comprehensively improve the timeliness of logistics services. The company will be able to provide more efficient and stable supply chain services to customers across upstream and downstream industry chains for bulk mineral products, agricultural products, and more, helping customers reduce total logistics costs, thereby enhancing overall service capability and increasing customer collaboration stickiness.

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