Half-year Report.

1.    FINANCIAL PERFORMANCE HIGHLIGHTS

The first half of 2025 has been a period of continuing strategic repositioning and tangible progress for ZCCM Investments Holdings Plc (ZCCM-IH). While the Group recorded a downturn in financial performance, the company has achieved key milestones that underscore our transformation into a commercially driven and value oriented investment holding company.

Group Financial Overview

For the six-month period ended 30 June 2025, the Group posted a net loss of ZMW 852.86 million (US$31.25 million), compared to a profit of ZMW 55.32 billion (US$2.17 billion) in the same period last year. This performance reflects:

·      the absence of the exceptional one-off investment gain realised in 2024 from the Mopani Strategic Equity Partner Transaction.

·      The ongoing strategic reforms at Mopani Copper Mines Plc, Lubambe Copper Mines Plc, CNMC Luanshya Copper Mines Plc and Konkola Copper Mines Plc, among others that are progressing and are expected to deliver substantial long-term value.

·      Operational performance, Mopani produced 24,337 tonnes of cathode in the first half of 2025 against a budget of 34,481 tonnes, primarily due to an incident that led to the oxygen plant shutdown from 21 November 2024 to 20 February 2025, of which 51 days fell in 2025. KCM production was also affected by smelter issues and acid supply constraints KCM's output was also impacted by smelter issues and acid supply shortages, resulting in the production of 43,000 tonnes of finished copper, representing a shortfall of 51% against budget for the period ended 30 June 2025.

·      the appreciation of the Zambian Kwacha against the US Dollar resulted in accounting for foreign exchange losses as most of ZCCM-IH's assets are US Dollar denominated.

Total Group assets declined marginally to ZMW 55.83 billion (US$2.33 billion) from ZMW 56.80 billion (US$2.33 billion) in June 2024, driven by the Kwacha's appreciation and the revaluation of foreign-currency-denominated assets. Cash and cash equivalents at Group level stood at ZMW 321.52 million (US$11.79 million), down from ZMW 633.86 million (US$25.98 million), reflecting net investment activity and operating outflows.

At the Company level, ZCCM-IH recorded a net loss of ZMW 197.68 million (US$7.24 million), a marked improvement from a loss of ZMW 4.74 billion (US$185.95 million) in 2024. The result reflects improved operational stability and cost control, though it was impacted by lower than expected royalty income from Kansanshi Mining Plc, due to weaker ore grades and a temporary smelter shutdown.

Total assets of the Company have increased by 39% from ZMW50.03 billion (US$2.05 billion) in 2024 to ZMW69.2 billion (US$2.89 billion) in 2025. This growth is driven primarily by the capital gains of ZCCM-IH's shareholding in CEC Plc. At the Company level, cash decreased to ZMW 191.01 million (US$7.97 million) from ZMW 505.63 million (US$20.71 million).

2.    KEY OPERATIONS AND STRATEGIC UPDATES

(I)   Additional Purchase of Shares in CEC Plc

During the six months ended 30 June 2025, ZCCM-IH Plc purchased additional shares in CEC Plc, which increased the shareholding to 32.91%. This reinforces ZCCM-IH's commitment to powering Zambia's industrial and mining sectors.

(II)  Investment in Sino Great Co. Ltd

On 19 May 2025, ZCCM Investments Holdings Plc ("ZCCM-IH") entered a strategic partnership with Jiangsu Sino Great Co. Ltd. and Wonderful Group of Companies Limited to co-invest in the development of an integrated phosphate fertilizer project in Zambia.

The total investment commitment by ZCCM-IH amounts to US$ 50 million, comprising:

·    US$ 37.8 million for a 30% equity stake in the project company; and

·    US$ 12.2 million in project debt financing.

The integrated project will include a phosphate mine, a 300,000 tonnes per annum Monoammonium Phosphate (MAP) plant, and a 40 MW thermal power plant.

The transaction is subject to fulfilment of standard conditions precedent, including regulatory approvals, execution of definitive agreements, transfer of funds, issuance of shares, and the provision of a corporate guarantee by the Wonderful Group. The debt facility carries a 12-month moratorium on interest and principal repayments, followed by equal quarterly instalments over four years, with interest accruing quarterly on a 360-day year basis.

(III) Funding Commitment to Mingomba Mining Limited

On 19 May 2025, the Board of Directors of ZCCM Investments Holdings Plc ("ZCCM-IH") approved a funding commitment of up to USD 10 million for the 2025 financial year towards Mingomba Mining Limited, in line with the approved 2025 Annual Work Program and Exploration Budget.

(IV)     Maamba Energy Limited Unlocking Legacy Value

A significant milestone was achieved during the period as Maamba Energy Limited fully settled its historical receivables and, for the first time since the commissioning of the Thermal Power Plant in 2016, declared and paid a dividend of US $17.5 million to ZCCM-IH. This accomplishment underscores our long-term strategy of revitalising legacy investments and transforming them into sustainable, dividend-generating assets.

ZCCM-IH injected US$ 8.75 million in equity funding toward the 300MW Phase II power plant expansion. The total projected cost is estimated at US$400 million, with the expansion set to double Maamba's output to 600MW.  This investment is fully aligned with our energy strategy to secure reliable baseload power and drive industrial growth.

3.    OUTLOOK

ZCCM-IH will continue to position itself to capitalize primarily on profitable and sustainable opportunities within the mining and energy sectors. This approach aligns with ZCCM-IH's strategy, which is focused on investments in mining, energy, and related areas.

§ Operational Turnaround:

Implement and monitor recovery plans for Mopani, Konkola Copper Mines Plc (KCM), Lubambe Copper Mines Plc, Limestone Resources Limited and Kariba Minerals to ramp up copper and other mineral production and improve operational efficiencies.

§ Strategic Projects:

Progress pre-feasibility studies for the Mingomba Copper Project to unlock long-term value, with shaft sinking scheduled for commencement in 2026. Additionally, accelerate the development of the Sino-Great Integrated Phosphate Fertiliser Project through technical, regulatory, and funding milestones.

§ Energy Expansion:

Deliver key implementation milestones for the Maamba Phase II 300MW power expansion and solar project, reinforcing ZCCM-HI's role in supporting national energy security and long-term infrastructure development.

§ Focused Capital Allocation:

Execute divestments from non-core holdings in non-mining and non-energy sectors to reinforce investment discipline and reallocate capital toward high-impact, long-term projects.

§ Sustainability Leadership:

Operationalise the newly established Risk, Compliance and Environmental, Social, and Governance (ESG) Committee. Strengthen the ESG agenda across the Group.

§ Governance Excellence:

Deepen the implementation of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) 2013 Internal Controls Framework across the Group and further embed ESG metrics and practices into operational, strategic, and investment decision-making processes.

By Order of the Board

Charles Mjumphi

Company Secretary

Issued in Lusaka, Zambia on 04 September 2025

APPENDICES

US DOLLAR ABRIDGED GROUP STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

US DOLLAR ABRIDGED COMPANY STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME