Zhen Ding Resources Reports Net Income of $733,222 for Q1 2025, Driven by Debt Extinguishment Gain

Zhen Ding Resources Inc. reported a net income of $733,222 for the three months ending March 31, 2025, a significant turnaround from a net loss of $139,572 during the same period in 2024. This improvement is primarily attributed to a gain on the extinguishment of debt amounting to $874,961, which was not present in the previous fiscal period. The company's operating expenses increased slightly to $17,382 from $14,797 year-over-year, reflecting ongoing administrative costs. Despite the positive net income, the company did not generate any revenue during either quarter.

The financial position of Zhen Ding Resources has shown notable changes compared to the previous fiscal period. As of March 31, 2025, the company reported current assets of $28,748, a substantial increase from $1,977 at the end of 2024. This increase is largely due to cash received from a bankruptcy settlement with its joint venture partner, Xinzhou Gold. Current liabilities decreased to $10,287,299 from $10,581,074, contributing to a working capital deficit of $10,258,551, which is an improvement from $10,576,176 at the end of 2024.

Operationally, Zhen Ding Resources continues to focus on its joint venture, Zhen Ding Mining Co. Ltd., which processes metal ore and sells concentrates. The company has been actively seeking new business partnerships in the mining sector, particularly in China, to enhance its operational capabilities. Following the bankruptcy of Xinzhou Gold, the ownership of the joint venture has transitioned to Mr. Wei De Gang, who continues to manage the operations. The company aims to resume its ore extraction and refining activities, contingent on securing necessary financing and extending mining permits.

Looking ahead, Zhen Ding Resources plans to raise approximately $4.5 million to restart its mineral processing plant and expand its mining operations. The funds will be allocated towards upgrading facilities, extending mining permits, and resuming exploration activities. The company acknowledges the challenges it faces, including a working capital deficit and accumulated losses of $22,906,127 since inception. Management has indicated that the continuation of operations is dependent on obtaining further financing and achieving profitable operations, with no assurances that such funding will be available when needed.