Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

About this Report 3Message from Chairman 6About Us 10ESG Management 16Communication with Stakeholders 20Material Issues 22

Outlook 109Appendix 1: Key Performance Indicators 111Appendix II: Index List 119

CONTENTS

Optimizing Resource Management 27Practicing the Thought on Ecological Civilization 33Combating Climate Change 41

Environmental Section:

Harmony with Nature, Empowermentthrough Ecology

Building a Happy Workplace 53Protection of Customers¡¯Rights and Interests 63Re¬¤ning and Advancing R&D and Innovation 70Collaborative Value Chain Management 77Public Welfare Bene¬¤ts Society 81

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Adhering to Party Building and Guide 85Optimizing Corporate Governance 90Lawful and Compliant Management and Control 93Observing Business Ethics 103Working Hand in Hand for Shared Success 106

Governance Section:

Multi-stakeholder Co-governancefor Collaborative Development

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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About this Report

Time Frame

Reporting Scope

References

Data Source & Assurance of Reliability

This is the fourth Environmental, Social and Governance (ESG) Report released by Minmetals New EnergyMaterials (Hunan) Co., Ltd. (hereinafter referred to as "Minmetals New Energy", the "Company", or "we").This report is prepared in an objective, standardized, transparent and comprehensive manner to fully disclosethe speci¬¤c measures, major practices, highlight cases and key performances in proactively assuming socialresponsibilities and executing effective management of ESG risks and opportunities by Minmetals NewEnergy in 2024, with a view to proactively responding to the intended expectations of stakeholders andful¬¤lling its social responsibilities more ef¬¤ciently.

This is an annual report. Unless otherwise stated, the reporting period covers January 1, 2024 to December31, 2024. To enhance the comparability and completeness of the report, certain sections of the report mayappropriately revisit previous years or include forward-looking statements.

This report is based on Minmetals New Energy as the main reporting entity, including its branches andsubsidiaries. Unless otherwise stated, the scope of this report is consistent with the consolidated ¬¤nancialstatements of the Company's annual ¬¤nancial report.

This report is prepared in accordance with guidelines set forth in the Guiding Opinions on State-ownedEnterprises Ful¬¤lling Social Responsibilities Better and the Reference Indicator System for ESG Reports ofListed Companies Controlled by Central Enterprises (ESG Reports Indicator System for Central Enterprises)issued by the State-owned Assets Supervision and Administration Commission (SASAC) of the StateCouncil, the Guidelines No. 1 of the STAR Market of Shanghai Stock Exchange for Self-regulation of ListedCompanies ¡ª Standardized Operation (Revised in December 2023), the Guidelines No. 14 of Shanghai

Stock Exchange for Self-Regulation of Listed Companies¡ªSustainability Report (Trial), the Guidelines No.13 of the STAR Market of Shanghai Stock Exchange for Self-regulation of Listed Companies ¡ª Preparationof Sustainability Reports, the Sustainability Reporting Standards (GRI Standards) released by the GlobalSustainability Standards Board (GSSB), and the Sustainable Development Goals (UN SDGs 2030).

All information and data cited in this report are primarily derived from internal documents of MinmetalsNew Energy or relevant public sources. Minmetals New Energy guarantees that this report contains no falserecords, misleading statements, or material omissions, and assumes individual and joint responsibility for theauthenticity, accuracy, and completeness of its contents.Monetary Unit

Report Accessibility

Unless otherwise indicated, all monetary amounts are listed in RMB for this report.

This report can be accessed and downloaded via the official website of Minmetals New Energy (http://www.cylico.com/) and the website of the Shanghai Stock Exchange (https://www.sse.com.cn).Comments & Feedback

If you have any comments or suggestions regarding the contents of this report or the Company's ESGperformance, please feel free to contact us via the following contact information. Any valuable commentand suggestion will help us further improve this report.Tel.: 0731-88998112Email: cylico@minmetals.com

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Spreading Genuine Compassion,Protecting Deeds of Kindness

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Collaborative Development

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China MinmetalsChina Minmetals CorporationMinmetals New Energy /the Company / We

Minmetals New Energy Materials (Hunan) Co., Ltd.Former company name:

Changyuan LicoMinmetals CapitalCRIMM

Gold Shine EnergyLICO Technology Corp.

Changyuan New Energy

Former company name: Hunan Changyuan Lico Co., Ltd.

Minmetals Capital Co., Ltd.

Changsha Research Institute of Mining and Metallurgy Co., Ltd.

Gold Shine Energy Material Co., Ltd.

LICO Technology Corporation (Taiwan, China)

Hunan Changyuan Lico New Energy Co., Ltd.

Names and Abbreviations

AbbreviationFull Name

2024 is a pivotal year for advancing the modernization of China on all fronts. This year, the Companyadhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,thoroughly implemented the requirements of the Central Economic Work Conference, actively practicedthe new development concept of economic development, innovation-driven, people's well-being, greenecology, and security, adhered to the general work tone of seeking progress in stability, promoting stabilitythrough progress, and establishing before breaking, adhered to the original mission, deepened the mainresponsibilities and main business, focused on value creation, and continued to deepen reforms, and madeevery effort to promote the high-quality development of the Company together with many partners, tocontribute the "Strength of Minmetals New Energy" to the progress of the industry and the sustainabledevelopment of society.

Message from Chairman

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In our 2024 journey, we remained unwavering in our commitment to green development. The Company

coordinated high-quality development and high-level environmental protection, actively and steadilyadvanced carbon peak and carbon neutrality initiatives, intensi¬¤ed efforts to prevent and control pollution, soas to coordinate the promotion of carbon reduction, pollution prevention and control, ecological conservation,and economic growth. We have strictly implemented the primary responsibility of ecological environmentalprotection, established and improved the ecological environment management system, consolidated thefoundation of environmental risk prevention and control, and strictly adhered to the bottom line of ecologicalenvironment risk, to constantly consolidate and expand the achievements of pollution prevention and control.Simultaneously, we vigorously promoted energy conservation, carbon reduction, and ef¬¤ciency improvementinitiatives, actively drove the transition to a cleaner and low-carbon energy structure, and consistentlyenhanced the ef¬¤ciency of energy and resource utilization, to deeply root the principles of green, low-carbon,and environmental protection practices into every aspect of production, operation, and management. We havenot only completed carbon footprint certi¬¤cation and full life cycle assessment for our core products, but alsomade solid progress in energy conservation and carbon reduction across multiple areas including raw materialprocurement, technological R&D innovation, equipment upgrades, manufacturing processes, productionoptimization, and project planning. Meanwhile, the Company has actively organized campaigns such as"National Energy Conservation Week" and "National Low-Carbon Day", and injected strong momentuminto building a Beautiful China and achieving the "Dual Carbon" goals by leveraging digital and intelligenttechnologies such as energy online monitoring and MES systems. On the path of green development, wetake concrete actions to shoulder our corporate responsibilities and mission. Every detail we optimize andevery innovation we make embodies our aspirations for a brighter future and our profound commitment toprotecting our planet.

In 2024, we courageously benchmarked ourselves against world-class enterprise standards andcontinuously enhanced our modern governance capabilities through reform and innovation. Wethoroughly implement the principle of "maintaining the two consistencies", and comprehensively advanceinstitutional improvement, structural optimization, and organizational adjustment, to ensure the deepintegration of Party leadership with the corporate governance system. In close alignment with the strategicdirectives of the SASAC of the State Council and China Minmetals regarding the new round of state-ownedenterprise reform and enhancement initiatives as well as the world-class enterprise value creation campaign,we have undertaken coordinated planning to advance the Company's comprehensive deepening reform andworld-class enterprise development.

In the new chapter of 2024, we¡¯ve been upholding our social responsibilities with resolute strides,demonstrating the mission and commitment of a central SOE. The Company always keeps in mind¡°the most fundamental priorities of the nation¡± and is fully committed to the strategic development of thecountry's new energy industry. We have intensified investments in R&D of core technologies, striving toaccelerate the cultivation and development of new-quality productive forces, aiming to reach new heightsin achieving self-reliance and strength in science and technology. We firmly believe that while creatingeconomic bene¬¤ts, enhancing social value is equally important. We are committed to ensuring that the fruitsof development are shared with the broader society. The Company actively organizes various public welfareinitiatives, such as donating relief supplies, supporting education, facilitating university-enterprisecollaborations, promoting blood drives, and participating in afforestation efforts, and continuouslydedicates itself to targeted assistance in designated regions. We help consolidate and expand the results ofpoverty alleviation, and promote its deep integration with the rural revitalization strategy, to jointly draw abeautiful picture of prosperity and development. On the path of strengthening the Company through talentdevelopment, the Company always prioritizes employees' health, safety, and personal growth. We activelypromote the philosophy of "Ef¬¤cient Work, Healthy Living" and diligently foster a warm and harmonious"Home for Employees". By organizing diverse cultural and sports competitions, we continuously optimizethe work environment for employees, effectively enhancing their sense of fulfillment, happiness, andsecurity. This reflects not only our care for individual employees but also our profound commitment tocorporate culture, demonstrating our steadfast dedication to building a harmonious enterprise.

Under the background of global energy structure transformation, the new energy cathode material industryhas ushered in unprecedented development opportunities. As a pioneer and leader in the cathode materialmarket, Minmetals New Energy is fully aware of the responsibilities and missions it shoulders. The Companydeeply integrates ESG concept into corporate strategy, not only to respond to the call for global sustainabledevelopment, but also to lead the cathode material industry to a greener, more efficient and sustainabledirection.

Harmony with Nature,Empowerment through Ecology

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Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Minmetals New Energy Materials (Hunan) Co., Ltd.

Liuquan Hu, Party Secretary and Chairman

We focus on the development vision of "product excellence, brand distinction, innovation leadership, andmodern governance", continuously strengthening the Company's core competitiveness, consolidating andenhancing core business capabilities. We vigorously reinforce our headquarters' strategic execution capacityin "oversight and coordination", fully leveraging the comprehensive functions of internal control, riskprevention, and compliance operations to ensure the Company's steady and sound performance.Through the formulation and implementation of a series of policy measures that align with both currentpractical needs and long-term development vision, we have steadily enhanced the modern governanceef¬¤ciency of the Company, driven by the dual engines of "reform" and "innovation". These initiatives aim tobuild a more ef¬¤cient, transparent, and modern corporate governance system, laying a solid foundation forthe sustainable development of the Company.Environmental protection, social responsibility, and corporate governance are the three cornerstones ofcorporate sustainable development. Looking to the future, Minmetals New Energy will unswervinglyfollow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,comprehensively and thoroughly implement the spirit of the 20th National Congress of the Communist Partyof China, bravely shoulder the historical mission of a central SOE, and live up to the gifts of the times andthe expectations of the people. We always maintain a pioneering and enterprising spirit, pressing ahead withan overwhelming sense of urgency to strive for excellence. Committed to the ambitious vision of becoming¡°a global leader in the new energy materials industry¡±, we will embark on this new journey with even greaterdetermination, writing a new chapter of high-quality development for Minmetals New Energy and creatingremarkable achievements worthy of the new era.

Company Pro¬¤leMinmetals New Energy Materials (Hunan) Co., Ltd. (Abbreviation: Minmetals New Energy, Stock Code:

688779) was established in 2002. As a directly managed subsidiary of China Minmetals Corporation, aFortune Global 500 company, it is a member of the State-Owned Enterprise Electric Vehicle IndustryAlliance, the president organization of the Hunan Battery Industry Association, and the leading organizationof the Changsha-Zhuzhou-Xiangtan Advanced Energy Storage Materials Industry Alliance. It was listed onthe Shanghai Stock Exchange's Sci-Tech Innovation Board in August 2021.As the core pillar of China Minmetals¡¯ innovation-driven development strategy and the creation of "FutureNew Momentum", Minmetals New Energy adheres to the action guidelines, value orientation, and corporatespirit of "global mission responsibility, leadership in independent innovation, problem-oriented thinking,pursuit of excellence, and the fighting spirit to triumph". With the strategic positioning of becoming "afirst-class domestic and internationally renowned new energy materials supplier", the Company focuseson its core responsibilities, upholds integrity while driving innovation, demonstrates bold commitment toexcellence, and strives for world-class standards. It is dedicated to strengthening, optimizing, and expandingthe Company and sharing development achievements with a broader range of stakeholders.In the future, the Company will actively implement the new development philosophy featuring innovation,coordination, greenness, openness, and sharing, stay true to our founding aspirations and consolidate ourstrengths, and join hands with partners worldwide to strive resolutely toward becoming "a global leader inthe new energy materials industry". We will continue dedicating ourselves to meeting the people¡¯s growingneeds for a better life, striving to serve the implementation of the national new energy vehicle strategy, andtaking on responsibilities to promote high-quality economic and social development, so as to make new andgreater contributions to the realization of the second Centenary Goal.

About Us

Harmony with Nature,Empowerment through Ecology

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Governance Section:

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2024 Environmental, Social and Governance (ESG) ReportMinmetals New Energy Materials (Hunan) Co., Ltd.

Corporate Culture

Principles for Practicing Corporate Culture

Corporate Mission

Strive for excellence as employees, create ¬¤rst-class products, and build a ¬¤rst-class enterprisetogether

Mission: Become a leader in the global in the new energy materials industry

Core Values of Corporate Culture

Guide to actionvalue orientationcorporate spirit

World-class spirit of responsibilityleading role in independent innovationproblem-oriented mindset at work

persistence in quality improvementstriving spirit towards victory

Pillars of Corporate Culture

Party building

Safety

Integrity

Compliance

Political leadership, integrateddevelopment, people-orientedapproach, and joint contributionand shared bene¬¤ts

Safety is the greatest saving, andaccidents are the greatest waste

Virtue, integrity, and pragmatism;dedication, commitment, anddiligence

Compliance creates value,and compliance is everyone'sresponsibility

Survive with quality, certify togain market, succeed on detailsand build the future with quality

View the market with sincerity,and treat customers with honesty

Opportunities for the willing,platforms for the capable, andincentives for the achievers

Technological innovationdrives high-quality enterprisedevelopment

Quality

Customer

Talent

Innovation

Organizational Structure

General Meeting of ShareholdersStrategy CommitteeNomination CommitteeRemuneration and Assessment Committee

Audit Committee

Board of Directors

Board of Supervisors

ManagersOverall Management DepartmentDisciplinary Inspection DepartmentR&D CenterStrategic Planning DepartmentFinance DepartmentParty Committee Organization Department(Party Committee Of¬¤ce, Party and Mass Work Department, Party Committee Propaganda Department)(Party Committee Inspection Of¬¤ce, Audit Department)Technology Research Institute(Of¬¤ce of the Board of Directors, Enterprise Management Department, Securities Affairs Department, Legal Department)(HR Department)

R&D Department 1R&D Department 2Technical Support DepartmentSales DepartmentPlanning and Material Control DepartmentInternational Business DepartmentProcurement DepartmentScience and Technology Promotion Department

Sales CenterProcurement CenterInformation Technology CenterLogistics DepartmentProject Command CenterChangyuan New EnergyGold Shine Energy MaterialQuality Assurance DepartmentSafety and Environmental Protection Department

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Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

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Business Overview

The Company focuses on the R&D, manufacturing and sales of highly ef¬¤cient battery materials. Its mainproducts include multi-element material precursors, multi-element cathode materials, and LFP, LCO andother cathode materials for lithium batteries and nickel metal hydride batteries. The Company owns acomplete product system covering multi-element material precursors for lithium batteries, multi-elementcathode materials for lithium batteries and LFP cathode materials and has always taken a lead in marketshare of power-supplying ternary materials. The Company is headquartered in Changsha, Hunan Province,and operates three production bases in High-tech, Lugu, and Tongguan, with an annual production capacityof 120,000 metric tons of ternary cathode materials, 60,000 metric tons of lithium iron phosphate cathodematerials, 30,000 metric tons of precursors, and 5,000 metric tons of waste battery recycling.Leveraging the long-term resource security advantages and full-industry-chain strengths in nickel, cobalt,manganese, lithium and other key materials under China Minmetals Corporation, the Company hasestablished robust R&D capabilities through quality-focused operations, talent aggregation, and dedicatedresearch. It has mastered advanced technologies including precursor synthesis, cathode material production,and spent battery recycling, recognized as a National Intellectual Property Advantage Enterprise and aNational High-Tech Enterprise, held 161 patents and operated both a National-level Enterprise TechnologyCenter and a Postdoctoral Research Workstation. The Company's products represent the developmentdirection of high-performance lithium-ion battery cathode materials. Single-crystal ternary and high-nickelmaterials enjoy a high reputation in the industry, and the product technology is at the international advancedlevel. The Company has acquired certifications of ISO 9001 Quality Management Systems, ISO 14001Environment Management Systems, ISO 45001 Occupation Health and Safety Management Systems, ISO50001 Energy Management Systems, ISO 27001 Information Safety Management Systems, IATF 16949Automotive Quality Management System and IPR Management System.

Milestones

YearMilestones2002

CRIMM and Lico Technology Corp. set up a joint venture company, mainlyproducing lithium cobalt oxides2014

Become a wholly-owned subsidiary of Minmetals Capital (formerly JinruiTechnology), a listed company2017

7,000-metric-ton project assets of Changyuan Lico, Jinchi Energy, and CRIMMwere restructured to form the new Changyuan Lico.

2018

Became a directly managed subsidiary of the GroupSuccessfully introduced equity capital of RMB 1.7 billion from 11 strategicinvestors including Guoxin, SAIC and BAIC

2019

The Company completed the shareholding system reform and was renamed asHunan Changyuan Lico Co., Ltd.Implemented an employee stock ownership plan, with 126 employees investingRMB 183 million to hold 4.07% of the Company¡¯s shares2021Successfully listed on the STAR Market (Stock Code: 688779)2024Renamed as Minmetals New Energy Materials (Hunan) Co., Ltd.

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

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2024 Environmental, Social and Governance (ESG) ReportMinmetals New Energy Materials (Hunan) Co., Ltd.

Honors in

2024

High-Quality New EnergyEnterprises in China in 2024

Best Corporate GovernanceAward for Listed Companiesin 2024

State-Owned AssetTransaction ComplianceModel Enterprises in 2024

Strategic Partner of the Year 2024

Enterprise with Revenue Exceeding RMB 10 Billion

May Day Labor Medal Award of Af¬¤liates

Directly Under Hunan Province

ESG Management

Governance

ResponsibilitiesLevelPersonnel

Board of Directors

ESG Working Group

BOD¡¯s StrategyCommittee

Minmetals New Energy has established a three-tier ESG management system comprising "Decision-Makingof Board of Directors ¨C Strategy Committee Management ¨C ESG Working Group Execution", achievinga well-defined, efficient, and collaborative organizational structure to provide solid governance for ESGinitiatives.

Identify and evaluate the Company¡¯s ESG risks, formulateESG-related guidelines, policies, systems and goals, reviewproposals and make decisions on ESG-related matters, andsupervise and appraise the practice of ESG-related matters.

Implement BoD¡¯s ESG-related decisions and policies,examine the Company¡¯s ESG risks, carry out and promotespeci¬¤c ESG matters, and regularly report to BoD about theprogress of ESG-related matters.

Regular collection, reporting, and review of ESG information;Focus on improving the ef¬¤ciency of ESG data managementand control while enhancing the effectiveness of ESG efforts,ensuring their ef¬¤cient execution and implementation.

Decision-making organ

The Management

Executive Level

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Strategy

The fundamental principle of the Company is to ¡°keep developing cathode materials for lithium-ion batteriesas the main business, adhere firmly to diversified industrial distribution policy and insist on the globaldevelopment direction¡±. The Company¡¯s strategic positioning is to become ¡°a new energy material supplierwhich is ¬¤rst-class in China and well-renowned in the world¡±. Guided by market orientation and based onprecise market analysis, the Company allocates resources rationally, de¬¤nes its future development path, andformulates its development strategy by taking into account both internal and external environments as well asits own strengths.

Aiming to drive diversified development in the cathode materials industry, the Company isstrengthening its deployment of cutting-edge products based on its existing businesses in ternarycathode materials, lithium iron phosphate (LFP) cathode materials, lithium cobalt oxide (LCO)cathode materials, and spherical nickel. It is actively building an integrated industrial chaincovering raw material security, material production, and recycling, improving its overall industrylayout and enhancing its comprehensive competitiveness and in´uence in the sector.

The Company has strong ¬¤nancing capabilities with access to diverse equity and debt ¬¤nancinginstruments, which will effectively support its technological advancement, capacity expansion,and rapid business growth.

The Company adheres to its world-class mission and responsibility. Building on the existingstable partnerships with current customers, it continues to expand collaborations with top-tierdomestic power battery manufacturers while strengthening its presence in the internationalmarket by actively competing and engaging with global peers. Beyond cooperation of productionand sale and technical research and development cooperation, the Company explores diversi¬¤edapproaches to establish strategic alliances with key partners.

Costs construct a core competitiveness of a company. We keep pushing forward total costmanagement and control, plan carefully on budgets and expenditures to ensure that each penny isspent wisely to play a better role, and put an end to waste.Technology innovation is the fundamental guarantee of a company¡¯s competitiveness. TheCompany keeps investing on technological R&D and optimizing its core products. Active effortshave been made to develop cutting-edge products and explore future technological directions.

Constructing and Improving the Business Portfolio

Promoting Industry-finance Integration Continuously

Stabilizing Domestic Market and Going to the World

Implementing a Cost-first and Technology-first Strategy

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Risk, In´uence and Opportunity ManagementIndicators and Targets

CLS

IssueExpected Risks and OpportunitiesCountermeasures

Products and

Services

Product quality risks and inadequateafter-sales handling may lead tocustomer attrition.

The Company will continuously optimizethe quality inspection and control system,advance quality information systemdevelopment, promote a quality-centricculture, and improve product after-salesservices.

Data security andcustomer privacyprotection

Technical risks and managementrisks may lead to customer privacybreaches, resulting in customer churnand potential lawsuits.

The Company will adopt the mitigationmeasures including implementing anti-leakage systems, performing regular systemupdates, enhancing employee awarenessof data security protection, and conductingpenetration tests along with emergencyresponse drills.

Supply ChainManagement

Supply disruptions, inventory risks,and other factors may compromisethe stability of the Company's supplychain, thereby affecting productdelivery.

The Company will strengthen supplychain management, practice responsibleprocurement, diversify supply chainstructures, and adopt digital traceabilityplatforms.

Innovation-drivendevelopment

Technological disruption risksand talent shortage/attrition risksmay cause companies to losecompetitiveness in the industry.

The Company will increase R&Dinvestment and strengthen collaborations,optimize R&D fund management, enhancetalent acquisition and developmentprograms, and expand technology reserves.CombatingClimate Change

For details, refer to the Combating Climate Change section.

ESG Pioneer Award

Presented byAwardsAward Title

Communication with Stakeholders

Government andRegulatory Agencies

Shareholders and

Investors

Regulatory compliancein business practicesIntegrity constructionIntellectual propertyprotection

Improve compliance systemStrengthen anti-corruption andintegrity education and trainingIntellectual property protectionsystem

Enhancing operation managementlevelInvestor research and exchangePublishing periodic report, interimannouncement and performancepresentationOverall risk management

Improving corporategovernanceProtecting shareholders¡¯rights and interestsInvestor relationsmanagementInformation disclosureRisk management

StakeholdersStakeholders ExpectationsCommunication and Feedback

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Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Customers

Suppliers and Partners

Employees

Environment

Communities and Public

Taking part in ruralrevitalizationSupporting education

Green and low-carbondevelopmentProtectingthe ecologicalenvironment

TechnologicalInnovationCustomers¡¯ rights andinterestProduct quality andsafety

Supply chainmanagementFair competitionIntegrity and mutualbenefit

Improve the purchasing systemFulfilling contract with integritySigning collaborative agreement

R&D management systemCustomer satisfaction survey andcomplaint channelStrict governance andmanagementSafeguard information security

Partnership and cooperationConsumption aidDonation for education

Establishing fair promotion pathsProfessional training and careerdevelopmentEmployee satisfaction surveyImplementing workplace safetyRoutine communication

Green transformation developmentGreen technology innovation

Guarantee of basicrights and benefitsIndividualdevelopmentEmployee benefitsEmployee care

StakeholdersStakeholders ExpectationsCommunication and Feedback

Minmetals New Energy places high importance on the expectations and demands of stakeholders. Based onthe two dimensions of "¬¤nancial materiality" and "impact materiality", the Company systematically identi¬¤eskey ESG issues and future development directions, and analyzes and evaluates the importance of the issuesthrough a four-step process: "conducting background research ¡ú establishing an issue list ¡ú assessing andcon¬¤rming materiality ¡ú reviewing and ¬¤nalizing issues".

Following veri¬¤cation by the Company's Board of Directors and external experts, Minmetals New Energyhas identi¬¤ed the following as material issues, which will serve as key priorities for corporate managementand reporting disclosure.

Material Issues

Conducting background

research

Analysis StepsDescription

Establishing a list of issues

Evaluating and con¬¤rming

materiality

Issue review and con¬¤rmation

Clarify the Company¡¯s business scope, operational areas, and stakeholder groups;identify potential issues through the collection and analysis of policies andregulations, industry information, peer practices, and capital market concerns.Through communication with stakeholders such as government and regulatoryauthorities, shareholders and investors, customers, suppliers, and partners, theCompany gains a full understanding of internal and external stakeholders¡¯ viewson material issues, identi¬¤es impacts, risks, and opportunities, and compiles theminto an issue list.Financial materiality and impact materiality assessments are conducted,considering national policies, capital market focus areas, and industry benchmarks,to generate material issue analysis results.The Management of the Company reviews and confirms the results of themateriality analysis and defines key objectives and implementation plans forfuture ESG management efforts.

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Corporate Governance

Financial Materialityimportantvery important

Anti-commercial Bribery and Anti-corruptionAnti-commercial Bribery and Anti-corruption

Products and ServicesProducts and Services

Workplace Safety

Workplace Safety

Anti-unfair CompetitionAnti-unfair Competition

Corporate GovernanceCorporate Governance

Circular Economy

Circular Economy

Compliance and Risk Management

Compliance and Risk Management

Environmental Compliance Management

Environmental Compliance Management

Combating Climate ChangeCombating Climate Change

Protecting Shareholders¡¯ Rights and InterestsProtecting Shareholders¡¯ Rights and Interests

Social ContributionSocial Contribution

Employee Training and Development

Employee Training and Development

Employees¡¯ Rights and Interests and Employee Care

Employees¡¯ Rights and Interests and Employee Care

Clean Energy Opportunities

Clean Energy Opportunities

Data Security and Customer Privacy Protection

Data Security and Customer Privacy Protection

ESG GovernanceESG Governance

Innovation-driven Development

Innovation-driven Development

Water Utilization

Water Utilization

Supply Chain Management

Supply Chain Management

Ecosystem and Biodiversity Protection

Ecosystem and Biodiversity Protection

Leading Role of Party Building

Leading Role of Party Building

Pollutant Emissions and Waste Disposal

Pollutant Emissions and Waste Disposal

Intellectual Property ProtectionIntellectual Property Protection

Energy UtilizationEnergy Utilization

Impact Materiality

very important

Governance TopicsSocial TopicsEnvironmental Topics

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Environmental SectionHarmony with Nature, Empowermentthrough Ecology

Upholding the philosophy of "Green Leadership, Low-Carbon Development, and Co-Creating a SustainableFuture", Minmetals New Energy takes proactive steps in energy utilization, water resource management,circular economy, ecological conservation, and climate change action. By establishing robust managementsystems, setting science-based targets, and implementing diversified initiatives, the Company strives tobalance business growth with energy conservation and carbon reduction. While achieving its own growth, italso contributes to promoting industry green transformation and supporting sustainable development.

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Environmental Section:

Harmony with Nature,Empowerment through Ecology

The Company places high importance on energy conservation and consumption reduction, and hasrevised and improved nine environmental protection management systems, including the Measures for theAdministration of Accountability System for Energy Conservation and Ecological Environmental Protectionand the Measures for the Administration of Statistical Reporting of Energy Conservation and EcologicalEnvironmental Protection by strictly complying with the Energy Conservation Law of the People's Republicof China, the Water Law of the People's Republic of China, and the Circular Economy Promotion Law of thePeople's Republic of China. All subsidiaries have established energy management systems, set up dedicatedenergy management departments, and formed professional teams for energy statistics and management. TheGroup strictly adheres to the statistical standards and accounting methodologies for energy consumption andcarbon emissions, and conduct statistical analysis of energy conservation and emission reduction monitoringdata, carry out regular monitoring and evaluation, and rigorously implement performance assessments.

Purchasing Energy-ef¬¤cient Production EquipmentThe Company continues to strengthen procurement controls for key energy-efficient equipment. For newly purchasedenergy-ef¬¤cient equipment in new, renovation, or expansion projects, it is required that the bidding documents and contractsexplicitly state that the energy ef¬¤ciency of the purchased equipment must meet Level 2 or above standards.

Optimizing Resource ManagementEnergy Use

The Company has taken multiple measures to promote energy conservation and improve energy ef¬¤ciency:

The Company has set an energy conservation target of reducing the comprehensive energyconsumption per unit product by 10% compared to 2022 by 2030. In 2024, the Companyheadquarters and two subsidiaries obtained certi¬¤cation of ISO 50001:2018 Energy ManagementSystems; and the comprehensive energy consumption per unit product decreased by 2% comparedwith 2022, achieving the predetermined target for 2024.

Utilization of Waste Heat, Waste Pressure, and Energy Cascading

Clean Energy and Green Power Trading

The Company is actively promoting the recovery and utilization of industrial waste heat. Its subsidiary Changyuan LicoNew Energy invested RMB 960,000 to recover waste heat from kiln ¬¥ue gas in the cathode material workshop, which is nowused for heating and hot water supply in of¬¤ce buildings, canteens, and dormitories, saving approximately 6 million kWh ofelectricity annually.

The Company actively promotes the clean and low-carbon transformation of its energy structure, vigorously advancing theconstruction of distributed photovoltaic projects. Meanwhile, its subsidiaries actively participate in green electricity markettransactions to increase the proportion of renewable energy, and reduce the proportion of fossil energy by optimizing powerresource allocation and actively consuming green electricity. Throughout the year, the Company consumed a total of 198.93million kWh of renewable energy and purchased green electricity certi¬¤cates equivalent to 4.71 million kWh. Renewableelectricity accounted for 28% of the Company's total power consumption, with some products already achieving 100%renewable energy use.

Distributed Photovoltaic Construction

During the reporting period, the two subsidiariescomprehensively advanced the construction ofrooftop distributed photovoltaic power generationprojects with a total installed capacity of 5.29MW. By developing and utilizing clean energy,the projects generated a total of 3 million kWh ofelectricity annually, equivalent to reducing carbondioxide emissions by 1,577 metric tons.

Case

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

2930

Environmental Section:

Harmony with Nature,Empowerment through Ecology

Intelligent Work´ow

Green Of¬¤ce

The Company has established a comprehensive intelligent system, including a manufacturing execution system, warehousemanagement system, automated material handling system, and production reporting system. The operational safety andproduction ef¬¤ciency are enhanced through intelligent functions such as automated material requests, AGV cart delivery,real-time positioning & tracking, and anomaly alerts.

The Company is fully committed to promoting energy conservation and green office initiatives, striving to create anenvironmentally friendly workplace. Regarding air conditioning usage, the Company has set clear temperature limits:

a minimum of 26¡ãC in summer and a maximum of 20¡ãC in winter, alongside regular maintenance to ensure energyconservation operation. For of¬¤ce operations, an electronic document management and sharing system has been establishedto advance paperless of¬¤ces. For commuting, the Company provides pure-electric shuttle buses and encourages employees toprioritize public transportation.Meanwhile, the Company actively carries out diverse energy conservation awareness campaigns to enhance employees¡¯conservation, environmental protection, and ecological awareness. Firstly, during the ¡°Energy Conservation Week¡± and¡°National Low-Carbon Day¡± campaigns, various subsidiaries organize theme-based activities, such as putting up postersand displaying energy-saving and low-carbon promotional videos on cafeteria digital screens; Secondly, both online andof¬¥ine channels, including WeChat groups, digital display screens, banners, posters, and themed meetings are fully utilizedto promote eco-friendly, resource-ef¬¤cient, and green low-carbon development concepts and theoretical knowledge. Thirdly,regular energy conservation and environmental protection training sessions are conducted, with such training incorporatedinto the onboarding programs for new employees.

Special Party Lecture on Environmental Protection

Liuquan Hu, Party Secretary and Chairman of the Company, delivered a special party lectureentitled "Reviewing General Secretary Xi Jinping's important guidelines on workplace safety and XiJinping Thought on Ecological Civilization, so that the concepts of safety and green developmentcan be internalized".

Case

Green BuildingsThe newly constructed project of the Company was strictly designed and implemented in accordance with energyconservation building technical standards and specifications, featuring photovoltaic panel systems on the roof, insulateddecorative integrated panels for exterior walls, and thermal-break aluminum alloy windows. The subsidiary Changyuan LicoNew Energy has implemented sunken green spaces, landscape water features with rainwater retention functions, and water-saving micro-sprinkler irrigation for green space maintenance. Zoning control and infrared sensing control are adopted forpublic space lighting to practice the concept of green development.

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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Environmental Section:

Harmony with Nature,Empowerment through Ecology

Water Use

Water Conservation TargetWater Conservation Results

Circular Economy

The Company is committed to building a water resource-saving enterprise, strictly complying with laws andregulations such as the Water Law of the People's Republic of China and the Law of the People's Republic ofChina on the Prevention and Control of Water Pollution, and has established management systems includingWater, Electricity, Steam, and Natural Gas Usage Management Regulations and Energy MeasurementManagement Regulations. By optimizing the precursor production process to reduce water consumptionper unit product, and adopting water-saving technologies and equipment such as circulating water systems,high-ef¬¤ciency cooling devices, and MVR systems, the freshwater usage and wastewater discharge can beminimized. Additionally, internal awareness campaigns, such as posting water conservation signs in domesticwater use areas, help enhance employees' awareness of water resource management.

The Company strictly implements the requirements of sustainable development, continuously establishesand improves the circular economy system in accordance with the Circular Economy Promotion Law ofthe People's Republic of China, takes various measures to reduce resource consumption, minimize wastegeneration and emissions, and enhance waste reuse and recycling. Firstly, implement strict requirementsfor material collection, prohibit excessive requisition and idle waste. Secondly, establish a full life cyclemanagement system for waste, including detailed classi¬¤cation, recycling, treatment, and reuse, to promoteresource recovery and maximize resource conservation and utilization, supporting the Company's green andsustainable development.The Company enhances resource utilization and reduces waste generation by recycling sagger and ton bags,fostering the development of an internal circular economy system.

Achieve

95%

water reuse rate by 2030Treated

630,000

metric tons of wastewaterRecycled600,000 metric tons of condensate waterAchieved

94.23%

water reuse rate

Recovery and Recycling

Material Usage

Additionally, it continues to advance the resource recycling of metal renewable resources and improves the recyclingtechnology for used batteries. In 2024, the Company completed the construction of an intelligent disassembly demonstrationline for retired power battery packs and achieved stable operation. Simultaneously, the Company pushes carbon emissionrequirements down the supply chain while actively collaborating with circular material suppliers to source recycled inputs.In line with regulations such as the Measures for the Administration of Solid Waste, Idle and Measures for theAdministration of Waste Material Disposal, Raw Material Pallet Recycling, Recycled Pallet Cleaning, and Recycled PalletLimit Samples, the Company standardizes the recycling and reuse of waste and used pallets to conserve resources.

The Company continuously optimizes the loading speci¬¤cations in the sintering process, increasing the material weight persagger for certain product types, thereby reducing sagger consumption and waste generation.

Reduction and Light-weighting of Packaging Materials

Additionally, by repurposing and reallocating resources based on bag needs, the Company has minimized the use ofaluminum foil bags and bulk plastic ton bags.

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

3334

Environmental Section:

Harmony with Nature,Empowerment through Ecology

Minmetals New Energy complies with regulations including the Environmental Protection Law of thePeople's Republic of China, the Environmental Impact Assessment Law of the People's Republic of China,and the Measures for the Administration of Energy Conservation and Ecological Environmental Protection,and has also established a series of management protocols such as the Measures for the Administrationof Accountability System for Energy Conservation and Ecological Environmental Protection and theManagement Practices of Energy Conservation.In order to thoroughly study and implement Xi Jinping Thought on Ecological Civilization andcomprehensively and accurately implement precise, scienti¬¤c and legal pollution control, the Company hasestablished a workplace safety and energy conservation and environmental protection committee, and setup a safety and environmental protection department to be responsible for the implementation of speci¬¤cenvironmental protection. The Company continues to establish and improve the energy conservation andenvironmental protection accountability system, formulates an accountability checklist, and signs targetaccountability agreements with subsidiaries to promote their ful¬¤llment of primary responsibilities in thisregard. Various subsidiaries establish a clearly defined and properly allocated energy conservation andenvironmental protection responsibility system through organizational structure setup and institutionaldevelopment, ensuring responsibilities are assigned to specific positions and individuals. Meanwhile,regular ecological and environmental risk assessments are conducted, with corresponding control measuresformulated based on evaluation results, forming a comprehensive and efficient energy conservation andenvironmental protection governance system to ensure standardized and consistent implementation.

Environmental Compliance Management

Practicing the Thought on EcologicalCivilization

Holding the 2024 Safety and Environmental Protection Work Conference

The Company maintains regular communication with local government regulators, customers, and otherstakeholders to understand their expectations and requirements regarding environmental management,and promptly incorporates their feedback into the Company's management framework. Additionally, theCompany has established an effective communication mechanism with neighboring communities, activelymonitoring residents' feedback and addressing concerns proactively to prevent any potential inconveniencecaused by environmental management shortcomings, and earnestly fulfilled the corporate socialresponsibility, to promote the harmonious coexistence between the enterprise and the community.In terms of environmental risk management, the Company conducts regular identification and updates ofenvironmental factors and implements corresponding control measures. To efficiently respond to suddenenvironmental incidents, enhance emergency response capabilities, and strengthen the capability toprevent and handle environmental pollution events, all subsidiaries have developed Emergency Plans forEnvironmental Incidents in line with their actual production conditions, which have been filed with thecompetent ecological and environmental authorities. In 2024, the Company organized a total of 9 emergencyresponse drills covering scenarios such as wastewater leaks, solution spills, and hazardous waste incidents.Among these, in December, the Company jointly conducted a "Fire-Induced Fire¬¤ghting Wastewater andSolution Leak Emergency Drill" with the Changsha Municipal Ecology and Environment Bureau. Thesepractical exercises have strengthened the Company's environmental risk awareness and emergency responsecapabilities.

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

3536

Environmental Section:

Harmony with Nature,Empowerment through Ecology

In 2024, the Company and its two subsidiaries successfully maintainedCerti¬¤cation of ISO 14001:2015 Environmental Management Systems,had no general or above-level environmental pollution incidents, nopenalties imposed by ecological and environmental authorities, andno major environmental compliance violations, and completed theannual environmental management objectives, including "zero majorenergy conservation and environmental protection violations, zeroenvironmental administrative penalties, compliance with wastewater,exhaust gas, and noise emission standards, and 100% safe disposal ofhazardous waste".Image: Certi?cation of ISO 14001Environment Management Systems

Minmetals New Energy strictly complies with environmental protection laws and regulations such as theEnvironmental Protection Law of the People's Republic of China, and actively promotes comprehensiveand effective treatment of wastewater, exhaust gases, noise, and solid waste. In line with the Company'spractical operations, it has established management systems including the Measures for the Administrationof Accountability System for Energy Conservation and Ecological Environmental Protection, Measures forthe Administration of Wastewater and Exhaust Gas, Measures for the Administration of Solid Waste, andMeasures for the Administration of Noise. The Company maintains a well-documented pollution source logand monitors the real-time operation of all pollution control facilities to ensure effective treatment of variouspollutants.The Company has consistently increased environmental protection investments and fully implementedtargeted, science-based, and law-based pollution control. During the reporting period, the Company's energyconservation and environmental protection performance continued to improve, with all pollutants dischargedmeeting compliance standards, and no sudden environmental pollution incidents occurred. The wastewater iscomprehensively utilized after advanced treatment, achieving pollutant reduction and ef¬¤cient water resourceutilization; Noise-generating equipment is equipped with measures such as vibration-damping bases,silencers, and sound barriers to ensure compliance with boundary noise emission standards, further

Pollutant Emissions and Waste Disposal

optimizing the acoustic environment in surrounding areas. By optimizing exhaust gas treatment facilitiesand enhancing maintenance, emissions of pollutants such as SO2, NOx, and dust have been reduced;Hazardous waste is collected by category and stored in designated areas with clear identi¬¤cation labels. Aregistration log for inbound and outbound waste is established, and quali¬¤ed agencies are regularly entrustedto transfer and dispose of the waste. Transfer forms are processed, and the resource utilization and reductionmanagement of hazardous waste are promoted in an orderly manner.In 2024, the Company achieved all major pollutant reduction targets, with subsidiaries Jinchi Energy andChangyuan Lico New Energy completing their environmental information disclosures in full compliancewith regulatory requirements for mandatory environmental reporting.

»·¾³ÆªÉ½Ë®ÔÌÎï Éú̬¸³ÄÜIn terms of wastewater pollutant treatment, for the treatment of high-salinity, high-NH

-N precursorwastewater, such processes as plate-and-frame filtration, steam stripping for ammonia removal, pHadjustment, MVR evaporation crystallization, and reverse osmosis are adopted to recover condensatewater to produce pure water, and concentrated water is used as supplementary water for coolingcirculating water, achieving zero discharge of heavy metal production wastewater. The separatedsodium sulfate from evaporation crystallization is sold as a byproduct. For lithium iron phosphatewastewater, the treatment process involving flocculation sedimentation + multi-media filtration +carbon ¬¤ltration + membrane system is adopted. The treated clean water is reused as makeup water forthe cooling circulation system, while the concentrated water is further treated by an MVR system forreuse.The Company strictly implements the principles of "separate drainage of rainwater and sewage, aswell as clean and polluted wastewater" to ensure classi¬¤ed treatment and orderly discharge of all waterstreams. Rainwater is collected through dedicated pipelines and discharged into the industrial park'srainwater system via designated outlets; Domestic sewage from office and living areas undergoespretreatment in oil separation tanks and septic tanks before being discharged into the municipalsewagenetwork through dedicated outlets; Industrial wastewater is collected in each workshop's

Wastewater Pollutant Discharges

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

3738

Exhaust Gas Pollutants

Types of PollutantsTreatment Methods

AmmoniaSpray absorption treatment with dilute sulfuric acidSulfuric acid mistSpray absorption treatment with alkali solution

Dust

Treatment with sintering plate dust removal, bag dust removal, cyclone dustremoval, water curtain dust removal and other treatment technologiesOrganic exhaust gasTreatment with RTO IncineratorIn line with production facilities and their emission characteristics, the Company has installedcomplementary exhaust gas pollution prevention and control equipment, and conducted regularenvironmental protection risk inspections and implemented immediate corrective actions for identi¬¤edissues to ensure timely and proper resolution. Daily maintenance and management of the facilitieshave been strengthened to guarantee the stable operation of pollution prevention and control systems.Additionally, the Company routinely commissions qualified third-party testing agencies to performexhaust gas testing, ensuring compliance with air pollutant discharge standards.

collection tank, then pumped to the wastewater treatment plant for processing and reuse, achievingzero liquid discharge of production wastewater.In 2024, the wastewater treatment facilities operated ef¬¤ciently, with the Company treating a total of630,000 metric tons of production wastewater.

metric tons

In 2024, the Company's exhaust gases included 2.08 metric tons ofparticulate matter, 1.28 metric tons of sulfur dioxide, 4.62 metric tons ofnitrogen oxides, 0.48 metric tons of ammonia gas and 0.37 metric tons ofsulfuric acid mist.

The Company strictly complies with the relevant provisions of the Law of the Law of the People'sRepublic of China on Solid Waste Pollution Prevention and Control and has established internalregulations such as the Measures for the Administration of Solid Waste and the Measures for theAdministration of Scrap Material, rigorously implements the requirements for reducing, recycling, andsafely disposing of solid waste, takes measures to reduce the amount of solid waste generated fromraw materials, processes, and management, promotes the comprehensive utilization of solid waste,reduces the harm of solid waste, and ensures 100% safe disposal of hazardous waste. Additionally, theCompany continuously improves its solid waste classi¬¤cation, storage, and transportation systems toensure standardized waste handling.For general solid waste, all subsidiaries construct general solid waste warehouses in compliance withthe Standard for Pollution on The Storage and Disposal Site for General Industrial Solid Wastes. Aftergeneration, general solid waste is temporarily stored in categorized sections within these warehousesto ensure standardized and orderly storage.All subsidiaries have constructed temporary hazardous waste storage facilities in compliance withthe Standards for Pollution Control on Hazardous Waste Storage. Hazardous waste is collected bycategory and stored in designated zones within dedicated hazardous waste warehouses, with clearhazard warning labels posted. An inventory log for inbound and outbound records is maintained,licensed hazardous waste treatment operators are regularly engaged for disposal, and transfer receiptsare processed.Domestic waste and kitchen waste are collected at designated locations and promptly removed bysanitation services.

Waste Disposal

Environmental Section:

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

3940

The Company strictly complies with the relevantprovisions of the Law of the People's Republic of Chinaon the Prevention and Control of Noise Pollution and hasestablished an internal Measures for the Administrationof Noise, has implemented a noise monitoring mechanismand adopted comprehensive noise reduction measures tostrictly control noise generation and transmission at boththe source and propagation stages. Meanwhile, it activelypromotes noise reduction upgrades to continuously improvenoise prevention and control effectiveness, striving tocreate a quiet and harmonious surrounding environment.

Noise

Noise ManagementTo enhance intrinsic environmental protectionstandards, the subsidiary Changyuan Lico NewEnergy conducted a comprehensive inspectionof all noise sources within the plant area, withcontinuous monitoring of noise-generatingequipment, designated zones, and factoryboundary noise levels.An investment of RMB 4.83 million was allocated to install silencers and noise barriers for noise-emitting equipment and affected areas. After renovation, the noise emissions at each factoryboundary met the standard, and the sound environment quality in the surrounding areas wasfurther optimized.

Case

The Company strictly conducts environmental impact assessments for new, renovated, and expandedprojects in full compliance with the Environmental Impact Assessment Law of the People's Republic ofChina and the Regulation on the Administration of Construction Project Environmental Protection. Allprojects meet the requirements for ecological conservation redlines, environmental quality standards,and resource utilization limits, and none are included in the Negative List for Market Access.The Company strictly complies with biodiversity protection requirements. All construction projects arelocated outside ecological conservation redlines and environmentally sensitive areas, and exclusivelyon industrial land. The production activities and products involved have minimal impact on regional´ora and fauna biodiversity. All construction projects of the Company have achieved 100% greeningcoverage. Notably, the newly built projects of Changyuan Lico New Energy have added over 900,000camellias, azaleas, and osmanthus trees in the past two years, along with more than 60,000 m

of turfgrass. The ornamental ponds have been stocked with over 300 carp and crucian carp.

Vegetation Protection

Ecosystem and Biodiversity Protection

Environmental Section:

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

4142

Environmental Section:

Harmony with Nature,Empowerment through Ecology

The Company has established a governance framework structured as "Board of Directors - StrategyCommittee of Board of Directors - ESG Leading Group - ESG Working Group". It is also equipped withprofessionals possessing climate change-related expertise, who are pro¬¤cient in applying climate veri¬¤cationtools, research methodologies, and relevant regulations to provide clear direction and specialized guidancefor the Company's climate change response.

Climate Change Governance System

PersonnelResponsibilities

Board of Directors

?ª¤

Responsible for identifying and assessing climate change-related risks of the Company, formulating guidelines, policies,systems, and targets for climate change response, reviewingand making decisions on material issues related to climatechange, and overseeing and evaluating the Company¡¯sclimate-related practices.

BOD¡¯s Strategy Committee

?ª¤Responsible for overseeing the implementation of the Boardof Directors' resolutions and policies regarding climate changeresponse, reviewing the Company's climate-related risks, andregularly reporting progress to the Board of Directors.

ESG Leading Group

?ª¤Responsible for leading the execution of the Company'sclimate change strategy and management plans, identifyingclimate-related risks to the business, assessing their potentialimpact, and developing mitigation measures;?ª¤Evaluate the climate change performance of variousdepartments and coordinate improvement initiatives.

Combating Climate Change

The Company has developed the "2023-2035 Sustainable Development Plan" based on stakeholder inputand practical considerations, thoroughly addressing sustainability-related risks and opportunities such asclimate change. The plan covers carbon emissions management, product carbon footprint management,energy management, and other key areas. Meanwhile, the Company has incorporated energy conservationand carbon reduction as binding indicators into the annual performance evaluations of all subsidiaries,linking them directly to annual incentive bonuses. Each year, the Company organizes selections to recognizeoutstanding departments and individuals in energy conservation and environmental protection, awardingthose who have made remarkable achievements in implementing energy-saving, emission reduction, andcarbon reduction initiatives.

PersonnelResponsibilities

ESG Working Group(comprising the StrategicPlanning Department, Safetyand Environmental ProtectionDepartment, TechnologyPromotion Department, andsubsidiaries)

?ª¤Responsible for planning and promoting work related tocombating climate change based on the requirements ofstakeholders and the Company's sustainable developmentrequirements.

Climate Change Strategy

The Company has incorporated green and low-carbon development into its overall development strategyand the "15th Five-Year Plan", committed to becoming a "resource-ef¬¤cient and environmentally friendly"enterprise. It actively and steadily advances the goals of carbon peak and carbon neutrality, integratingclimate change risk management processes into its overall risk management framework, actively assessidenti¬¤ed climate change risks, and develop effective management measures to ensure that identi¬¤ed climatechange risks are within a controllable range. In addition, the Company has fully implemented energyconservation and carbon reduction initiatives to enhance ef¬¤ciency, tapping into the potential for pollutionand carbon reduction. It has carried out in-depth activities such as process optimization, equipment upgrades,and management improvements, to increase the proportion of renewable energy supply, and advance theenergy ef¬¤ciency improvement of key energy-consuming equipment.

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

4344

Environmental Section:

Harmony with Nature,Empowerment through Ecology

RiskDescription

Duration of Impact

Management Measures

Extremeweather andchanges inprecipitationpatterns

may have an impact on supply chains andproduction facilities, causing asset lossesand even potentially leading to employeesafety accidents.

Short-term

Promote sustainable development.Energy conservation and emissionreduction measures are taken toimprove resource utilization ef¬¤ciencyand reduce carbon emissions, andnatural disaster emergency responsemechanisms are continuouslyimproved.

Policies andlaws risks

The adjustment of climate policies mayaffect corporate production and operations;Local governments will implement stricterenvironmental protection regulations,imposing rigorous limits and emissionquotas on wastewater, exhaust gasesand solid waste and greenhouse gases.Compliance with such new rules andstandards will increase the Company'sregulatory costs.

Medium- andlong-term

Strengthen climate risk assessment.Closely monitor regulatory and policychanges related to "Dual Carbon"goals (peaking carbon emissionsand achieving carbon neutrality),assess climate change vulnerabilities,and develop corresponding riskmanagement strategies.

Raw materialsupply

The key raw materials for lithium-ionbatteries may face supply shortages orprice volatility due to climate change-related resource constraints.

Medium-term

Supply chain diversi¬¤cation. Ensurethe stability of raw material supplyby identifying alternative materials orpartners; Collaborate with upstreamand downstream partners to jointlyimplement carbon reduction initiatives,establish coordination mechanisms toenhance the value chain's resilienceto climate change.

Energyconsumption

The energy demand in manufacturingprocesses may increase due to climatechange, leading to higher production costs.

Medium- andlong-term

Energy ef¬¤ciency improvement.Conduct regular inspections ofproduction facilities to identify potentialhazards, and promptly upgradeequipment as needed; Optimizeproduction processes to reduceenergy consumption and improveenergy ef¬¤ciency.

RiskDescription

Duration of

Impact

Management MeasuresGrowingdemand forclean energy

With the growing demand for cleanenergy, lithium battery companiesmay expand their market in areassuch as batteries.

Medium- andlong-term

Investment in R&D. Enhance R&D ofhigh-performance, low-cost lithiumbattery technologies to meet marketdemand.Energy use

Increase the use of clean energyand further reduce energyprocurement costs.

Medium- andlong-term

Develop photovoltaic powergeneration projects and procuregreen electricity.Technology-driveninnovation

Climate-related technologicalinnovation may bring newdevelopment opportunities for theCompany.

Medium- andlong-term

R&D and innovation. The Companywill invest in R&D to develop moreenvironmentally friendly and efficientproducts and technologies.

Brand imageenhancement

Taking active measures to combatclimate change helps strengthencorporate social reputation.

Medium- andlong-term

Active disclose. Regularly publishingESG reports of the Company anddisclosing information on the statusof the Company's energy savingand emission reduction objectives,enhancing the Company¡¯s greenimage.

Developmentof electricmobility

The widespread adoption ofelectric vehicles will drivedemand for high-performancelithium batteries.

Medium- andlong-term

Expand production scale. Improveproduction efficiency and ensurethat the supply of lithium batterieskeeps pace with the growth of theelectric vehicle market.

Definition of short,medium, and Medium-and long-term

Short term: Refers to the period within 1 year (inclusive) after the end ofthe Company's sustainability reporting period.Medium term: Refers to the period from 1 year to 5 years (inclusive) afterthe end of the Company's sustainability reporting period.Medium- and long-term£º

Refers to the period beyond 5 years after the endof the Company's sustainability reporting period.

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Environmental Section:

Harmony with Nature,Empowerment through Ecology

»·¾³ÆªÉ½Ë®ÔÌÎï Éú̬¸³ÄÜ

Climate Adaptation

The Company's long-term climate adaptation is impacted by energy supply and low-carbon transition,while downstream demand shifts and raw material supply fluctuations disrupt its business model,concurrently exerting climate-related effects. In terms of energy management, the Company isincreasing the use of renewable energy by constructing distributed photovoltaic facilities. In termsof supply chain optimization, the Company is working with suppliers to develop contingency plansand diversify supply channels. In terms of product R&D, the Company focuses on developingenvironmentally friendly and efficient materials. In terms of policy trends, evolving regulationson renewable energy and carbon emissions, particularly the EU's new battery regulations, willimpact costs and demand, and the Company is closely monitoring these developments. In terms ofprocurement, the Company is adjusting its strategy by prioritizing recycled materials and optimizingproduction processes to improve capacity utilization. Additionally, the Company monitors carbonemission scenarios based on green electricity usage and recycling rates, and formulates correspondingstrategies.

Climate Targets2023

Achieve 100% green electricityfor select products.

Achieve carbon neutralityacross the value chain.

20502035

Reduce organization-wide CO

emissions by 50% compared tothe baseline year (2022).

Scenario Analysis

The Company employs scenario analysis to assess carbon footprints under different scenarios. The analysisis conducted using SimaPro, with a self-designed scenario framework that includes one baseline scenarioand multiple pressure scenarios of varying degrees. Among them, the baseline scenario serves as a referenceunder business-as-usual conditions without additional influencing factors, while the pressure scenariosthoroughly incorporate policy requirements. The Company will continue to improve the data collectionand management system for climate-related risks to enhance data accessibility and accuracy. The Companywill further refine stress testing models and validate them across multiple dimensions to improve theirapplicability and precision, thereby enabling more accurate assessment of climate change impacts on thebusiness operations.Given that the clean energy mix directly impacts carbon emissions from electricity use, the Companycalculated climate change scenarios for 20%, 50%, and 100% green electricity adoption respectively. Interms of recycled material usage, the Company has established and continuously optimized scenario analysisto compare the climate change impacts at different recycling ratios. When the recycled material ratio reaches50%, the carbon footprint of cathode materials and batteries is reduced by 20.56% and 10.37% respectively.

4546

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

4748

Environmental Section:

Harmony with Nature,Empowerment through Ecology

The Company is ¬¤rmly anchored in the strategic direction of green and high-quality development, adheringto a systematic approach to balance development and carbon reduction, actively and steadily advances carbonpeak and carbon neutrality initiatives. With the of target of achieving carbon peak before 2030, the Companywill solidly and deeply promote the carbon peak action, shift from energy consumption "dual control" tocarbon emissions "dual control", continue to deepen the green and low-carbon transformation of energy andthe green and low-carbon recycling transformation, and formulate the "2024 Carbon Peaking Action Plan" toaccelerate the achievement of the Company's carbon neutrality goal.The Company has established a "Dual Carbon" Leading Group with the Party Secretary and Chairmanserving as the leader. The Leading Group has formulated the 2024 Work Plan for Carbon Peak Action,clearly de¬¤ning the responsibilities of all departments. Focusing on three key areas -process optimization,equipment upgrades, and management enhancement, the Company is implementing a comprehensive energyconservation and carbon reduction ef¬¤ciency initiative. During the reporting period, the Company organizedtwo energy conservation and carbon reduction meetings to explore the potential of energy conservation andcarbon reduction. Throughout the year, multiple measures were implemented, including rooftop distributedphotovoltaic power generation, waste heat recovery from kiln flue gas, energy conservation upgrades forcirculating water pump motors, and optimization of gas venting at oxygen stations, resulted in a reduction ofCO

emissions equivalent to 11,648 metric tons of standard coal, effectively controlling and lowering energyconsumption while progressively decreasing total carbon emissions and intensity. The Company continued tooptimize and improve its energy conservation and carbon reduction management system, steadily enhancingthe level of control in this area. It clarified the responsibilities and work requirements for monitoring,measurement, statistics, and reporting of energy conservation and carbon reduction across all departments,and established a monthly reporting system for production energy consumption and carbon emissions.

GHG Emissions Management

The Company fully utilized the online energy monitoring system and MES energy management systemto track electricity and power consumption in real time. By analyzing and evaluating energy usage acrossvarious sectors, it provided decision-making support for production scheduling and off-peak powerconsumption, thereby enhancing the informatization and precision of energy management and achievingcost reduction and ef¬¤ciency improvement. Various subsidiaries incorporated energy consumption per unitproduct into performance evaluations, conducting regular monthly monitoring and assessments to strengthenproduction departments' accountability for energy conservation and carbon reduction.

Subsidiary Jinchi Energy's Emission Reduction EffectivenessCaseSubsidiary Jinchi Energy has consistently implemented waste heat recovery from the condensatewater of the deammoniation tower reboiler. By utilizing this residual heat to preheat wastewater, thesteam consumption is reduced by 5,000 metric tons annually, equivalent to reducing CO

emissions by1,522 metric tons.

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Environmental Section:

Harmony with Nature,Empowerment through Ecology

Subsidiary Changyuan Lico New Energy's Emission Reduction EffectivenessCaseThe subsidiary Changyuan Lico New Energy has implemented energy-saving and carbon reductionmeasures such as 6 sets of three-layer kilns, recovery of waste heat from kiln flue gas, energyconservation renovation of circulating water pump motors, optimization of gas venting in oxygenproduction stations, and renovation of RTO incinerators for lithium iron phosphate tail gas treatmentfacilities, resulting in a total reduction of 8,549 metric tons of carbon dioxide emissions.

5049

Meanwhile, the Company conducts annual carbon emissions accounting in accordancewith the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions for OtherIndustrial Enterprises. Greenhouse gas inventories are compiled based on the ISO 14064-1:2006 standard, with active efforts to assess the carbon footprints of key products. Carbonfootprint certifications have been completed for products including LY318S, LY336,LY346, L5503, and L6509. The Subsidiaries Jinchi Energy and Changyuan Lico NewEnergy's Lugu Base were awarded the title of "National Green Factory" in 2022 and 2020,respectively.

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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Employee Care: Minmetals New Energy is committed to fostering a fair recruitment environment,safeguarding employee rights through diversified initiatives, nurturing talent development, andproviding compassionate workplace support. Customer Rights Protection: The Company hasestablished a robust quality management system and implements stringent data security andprivacy protection measures. R&D: With a well-structured system, the Company drives innovationwhile strengthening intellectual property protection. Supply Chain Management: Through rigorousgovernance, risk mitigation, and diversified strategic partnerships, the Company has built a highlyefficient and stable supply chain. In addition, the Company is actively engaged in philanthropicinitiatives, contributes to rural revitalization, demonstrating its commitment to societal well-being.

Community SectionSpreading Genuine Compassion,Protecting Deeds of Kindness

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

The Company strictly complies with laws and regulations such as the Labor Law of the People's Republic ofChina and the Labor Contract Law of the People's Republic of China, and has established a series of internalpolicies including the Company Recruitment Management Regulations. The Company's recruitment processis transparent and well-de¬¤ned, consistently adhering to the principles of openness, fairness, and impartiality.The Company upholds equality and respect, prohibiting discrimination against any candidate based on age,gender, race, or other factors. In the recruitment process, the Company emphasizes diversity and inclusion,encouraging talents from various backgrounds and disciplines to join the Minmetals New Energy teamthrough channels such as social recruitment, campus recruitment, and internal open competitions.

Building a Happy WorkplacePracticing Fair Employment

Total number of in-service employees/person

Ethnic minority employeesProportion of ethnic minority employees

Employees with disabilitiesProportion of employees with disabilities

Demobilized military personnel employedProportion of demobilized military personnel employed

2,064

1115.38%

50.24%

32 1.55%

Male

31-50

Female

Over 50

488/23.64%

148/7.17%

1576/76.36%

1251/60.61%

665/32.22%30 and below

By genderBy age

Bachelor¡¯sdegree orbelow

Ph.D.12/0.58%

1824/88.37%

228/11.05%Master¡¯sdegree

By degree ofeducation

Productionpersonnel

Procurement personnel

Administrativepersonnel

134/6.49%

1280/62.02%

18/0.87%

593/28.73%

20/0.97%

19/0.92%

Technical personnel

Financialpersonnel

Sales personnel

By profession

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Remuneration and Bene?ts

Health and Safety

The Company has established standardized documents, including the Measures for the Administrationof Company Compensation and the Measures for the Administration of Employee PerformanceAssessment, to provide industry-competitive salaries and ensure timely and full payment. TheCompany respects the value differences among various positions and implements a differentiatedcompensation system tailored to different job categories, establishing a scientific, reasonable, andeffective salary distribution model with a dynamic adjustment mechanism. In response to employeeneeds, the Company ensures that attendance records, performance evaluations, and disciplinaryactions are all con¬¤rmed by employee signatures. Employees reserve the right to appeal in case of anyobjections.The Company continuously enhances its scientific research, development, and technologicalinnovation capabilities, stimulates the professional enthusiasm, initiative, and creativity of technicalpersonnel, and provides rewards for various scienti¬¤c and technological innovation achievements aswell as academic outputs. It also offers core talent mid-to-long-term incentive plans and education andtraining sponsorship programs.The Company is committed to building a comprehensive and multi-tiered employee bene¬¤ts system.In strict compliance with national policies and regulations, the Company provides social insurance,housing provision fund, and supplementary commercial medical insurance, effectively safeguardingemployees' livelihood stability and enhancing their sense of professional security and belonging.

The Company places high priority on employee health and workplace safety, actively promotinghealth awareness, conducting occupational health training, and fostering a healthy work environment,to enhance employees' occupational health literacy. The Company headquarters has established theGeneral Emergency Response Plan for Public Emergencies, the Measures for the Administrationof Public Emergencies Response, and the Measures for the Administration of Emergency CapacityBuilding for Workplace Safety, forming a "1+1" emergency regulatory framework for publicemergencies. The two subsidies have respectively established their Emergency Response Plans forWorkplace Safety Accidents, including comprehensive emergency plans, specialized emergencyplans, and on-site disposal measures. The Company has acquired certification of ISO 45001:2018Occupational Health and Safety Management Systems.The Company has solidly advanced the three-year campaign for fundamental improvements inworkplace safety, continuously pursued the dynamic clearance of major accident hazards, andcarried out special rectifications in key areas such as fire safety and subcontractor construction, toactively promote technological support for safety and environmental protection. The Company hascontinuously improved the safety management system, made efforts to strengthen the dual-preventionmechanism, established an assessment and evaluation system for safety management, and improvedchannels for reporting workplace safety concerns, thereby enhancing the effectiveness of safetyand environmental protection management. The Company has organized thematic activities suchas "Workplace Safety Month" and "Fire Safety Month", and conducted emergency drills includinghazardous chemical leakage and ¬¤re evacuation emergency response drills targeting key risks underthe Company's control, effectively raising employees' safety and environmental protection awareness.The Company has strengthened occupational health management by organizing pre-employment,on-the-job, and post-employment occupational health examinations, established occupationalhealth management files, and carried out "Family Doctor" activities in enterprises, to deepen theestablishment of "Healthy Enterprise".

Safeguarding Employees¡¯ Rights and Interests

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

In 2024, the Company organized a total of 183 safety training sessions, including specialized trainingfor con¬¤ned space operations, occupational health programs, post-holiday resumption safety education,guardian training for special operations, and case studies on production workplace safety accidents,with a total duration of 366 training hours. The subsidiary Changyuan Lico New Energy partneredwith the Hunan Red Cross Society and Lei Feng Community Hospital to conduct "Emergency RescueKnowledge and Skills Training", further enhancing employees' safety awareness and strengthening thefoundation of safety mindset.The Company has set the occupational health and safety production management goals of zerogeneral and above workplace safety accidents, zero new cases of occupational diseases, and no seriousviolations of the Hunan Provincial Social Security Comprehensive Management Regulations. In 2024,the Company recorded zero general-or-above-level workplace safety accidents (as de¬¤ned by nationalstandards) and no new occupational disease cases. Its subsidiary Changyuan Lico New Energywas awarded the title of "Hunan Provincial Healthy Enterprise", a government-endorsed honor forexemplary workplace health management.

Fire emergency evacuation drill for the testing building and the launchceremony of the "Workplace Safety Month" held by the CompanyCaseMinmetals New Energy held the launch ceremony for "Workplace Safety Month" under the theme'Safety for Everyone, Emergency Preparedness for All - Keeping Escape Routes Clear". The Companyorganized a fire evacuation drill and a hands-on fire extinguisher training session in the testingbuilding to comprehensively evaluate employees' emergency escape and self-rescue capabilities incase of sudden ¬¤res, and strengthen the practical response and coordination skills of the Company's¬¤re rescue team, thereby enhancing the overall emergency preparedness of the organization.

Safety Training

First Aid Training

Democratic Management

The Company continues to strengthen democratic management through measures such as holdingcongress of workers and staff, listening to annual work reports, completing elections for congress ofworkers and staff, and soliciting opinions and suggestions on annual activity plans. Meanwhile, theCompany's trade union, leveraging subsidiary initiatives, has focused on lean operation improvements.By implementing practices like whole-staff participation and closed-loop process management,it has carried out comprehensive lean innovation activities to foster a deeper sense of ownershipamong employees. By strengthening democratic management, the Company has not only enhancedemployees' sense of identity and belonging, but also laid a solid mass foundation for its stableoperations.

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Minmetals New Energy Holds a Congress of Workers and Staff

The Company adheres to the philosophy of "prospering through talent", genuinely focusing on employeedevelopment. It has implemented the Measures for the Administration of Employee Training and Educationalong with supporting measures. In accordance with the nature and characteristics of different positions, theCompany provides multiple career development pathways, including the management ladder, professionalsladder, specialized business ladder and operation ladder. A diversi¬¤ed career development system has beenestablished, allowing for vertical promotion, horizontal job rotation, and mobility toward key positions. Ascienti¬¤c talent evaluation and selection mechanism has been established to actively promote talent pipelinedevelopment. A reserve management trainee program is implemented, creating extensive growth platformsfor employees.

Talent Cultivation

The Company has implemented specialized talent development programs such as the "Elite 300" TalentProgram, LICO Rising Star Program, and Skilled Talent Cultivation Initiative. Through measures like jobrotation, mentorship programs, and skills competitions, the Company fully unlocks employees' potential,empowers their career growth, and injects vitality into long-term corporate development, building a high-quality talent pool to support the Company's high-quality growth.

Minmetals New Energy's 2024 "LICO Rising Star" Training CampSuccessfully Concluded

Case

The 2024 "LICO Rising Star" Training Camp of Minmetals New Energy of¬¤cially commenced. ZhangZhen, General Manager and Deputy Party Secretary of the Company, attended the opening ceremonyand delivered a lecture to the new employees. The new employees underwent an intensive one-weeksystematic training program covering various aspects such as the Company's development strategy,corporate culture, industry trends, and team building.

The Company places high importance on employee care and provides support through various initiativessuch as visiting employees in financial difficulties, organizing mental health seminars, and conductingwomen's health knowledge workshops. In 2024, the Company organized sports events such as tug-of-warand badminton, as well as celebrations for the Spring Festival and Lantern Festival, as well as a series ofactivities for "International Women's Day" and a "Family Open Day" event for employees¡¯ children duringthe summer vacation. These initiatives signi¬¤cantly boosted staff morale and enhanced employee satisfactionand well-being.

Humanistic Care

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

"Feather" and "LICO" Soar Together Chasing Dreams

Lantern Festival Event

Summer Research & Learning Programfor Employees' Children + Family OpenDay

Series of Activities for International Women's Day

"Start from the Heart, Empower the Journey"Mental Health Lecture

Spring Festival Celebration Performance

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

6364

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Product and Service Quality and Assurance

Governance

Strategy

Risk, In?uence and Opportunity Management

The Company continuously improves its product quality management system by establishing a qualityand safety accountability framework that covers top management, management representatives, qualitypersonnel, and employees. The top management assumes primary responsibilities including formulatingquality strategies and implementing the quality and safety accountability system. The managementrepresentative is responsible for establishing the quality policy and objectives, planning the qualitymanagement system, exercising the one-vote veto power on quality issues, and implementing qualityassessment and incentives. Quality management personnel are tasked with strengthening process qualitycontrol, organizing quality analysis, correction, and improvement, as well as enforcing the quality andsafety responsibility system. Production and inspection personnel bear direct responsibility for ensuringproduct manufacturing quality.The Company has established multiple relevant institutional documents for products and services based onthe ISO 9001:2015 and IATF16949:2016 quality management system standards to ensure delivery qualityand service excellence.

The Company upholds the quality management policy of ¡°crafting products and services that exceedcustomer expectations with a spirit of craftsmanship¡±. It consistently adheres to the service philosophyof observing the market with dedication and treating customers with sincerity. We are dedicatedto meeting customer needs and producing products and services that go beyond the customerexpectations with professional attitude, standardized management, precision control, unceasinginnovation of the management mode and the drive for continuous improvement to realize mutualgrowth with customers.

In quality inspection and control systems, the Company establishes dedicated departments and buildsprofessional teams to cover the entire business process through "systems + technologies + standards".For quality informatization development, the Company implements a laboratory informationmanagement system to address critical challenges, enhancing supervision efficiency and workinformatization levels. Under the dimensions of quality culture and customer service, the Companyconducts "Quality Month" activities, establishes risk contingency mechanisms, complies with relevantregulations, and forms dedicated service teams to enhance customer service quality. The Company ismaking multi-dimensional efforts to comprehensively enhance product quality management, laying asolid foundation for high-quality development.The Company places high importance on product after-sales service, has established the CustomerFeedback Control Procedures and Measures for the Administration of Sales, and set up a productrecall leading group. Should any product be found non-compliant with standards or posing safetyrisks, the Group will immediately halt sales and initiate proactive recalls, and develop correspondingsolutions at the same time. The Company has established a 24-hour service hotline to promptlyrespond to complaint calls, efficiently allocate resources, and categorize responses based on theurgency level of complaints. Designated personnel are required to provide solutions within speci¬¤edtime. Major and above-level complaints will be included in the service quality assessment.

Protection of Customers¡¯ Rightsand Interests

Product and ServiceManagement Systems

Product Recall System

Production ControlProceduresSupplier Management

Control Procedures

NonconformingProduct Control

Procedures

Customer FeedbackControl Procedures

After-sales Service System

Customer ComplaintHandling System

Measures for theAdministration of SalesCustomer ManagerMechanismImplementation RulesCustomer FeedbackControl Procedures

Customer FeedbackControl Procedures

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

6566

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Ö¸±êÓëÄ¿±ê

Quality Control Compliance PromotionCase

In September 2024, Minmetals New Energy launched diverse and substantial "Quality Month"activities under the theme "New Name, New Chapter; Quality First, Building a New Journey".Zhang Zhen, the Company¡¯s General Manager, and Deputy Party Secretary, attended the event anddelivered a speech, urging all employees to fully understand the profound implications of high-quality development in the new phase, accelerate the thorough implementation of comprehensivequality management, and continuously enhance the core capability of creating value through quality.During the "Quality Month" campaign, the Quality Assurance Department of the Company and theQuality Departments of subsidiaries conducted targeted thematic training sessions covering projectdevelopment, supplier management, process control, and customer requirement dissemination,achieving "full coverage" of quality awareness promotion.

Indicators and TargetsIn 2024, the Company experienced no majorquality incidents, work-related fatalities, orequipment accidents. Meanwhile, the Companyregularly conducts proactive product testing (bothinternal and external) and has obtained multiplecertifications by quality management systemsstandards, ensuring operational efficiency incorporate management.As of the reporting period end, the Company has obtained certifications under IATF 16949:2016Quality Management System and ISO 9001:2015 Quality Management Systems, with two laboratoriesand testing centers accredited by China National Accreditation Service for Conformity Assessment(CNAS).

Company Wins the 3rd Changsha Mayor's Quality Award

Certi?cation of IATF 16949:2016 Quality Management System

Complaint information is synchronized to the manufacturing base for analysis and corrective actions.By assigning tasks to localized service teams through the system, fully authorizing channel partners,and processing claims online, the resolution ef¬¤ciency is improved.

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

6768

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Data Security and Privacy Protection

Governance

Strategy

The Company strictly complies with relevant laws and regulations, including the Data Security Lawof the People's Republic of China, the Personal Information Protection Law of the People's Republicof China, and the Cybersecurity Law of the People's Republic of China, and carries out its operationsaccordingly in accordance with its internal policies such as the Measures for the Administration ofNetwork and Information Security and the Measures for the Administration of Information SystemData. The Company has established a Cybersecurity and Informatization Committee chaired by theChairman of the Board, which is responsible for implementing regulatory requirements, reviewingdevelopment plans and institutional standards, coordinating major incidents, and overseeingoverall work advancement. For data security management, the Company has built a cybersecuritymanagement system, classi¬¤ed security incident levels, and clari¬¤ed division of responsibilities.

Based on the characteristics of large production scale and high quality requirements in the industry, aswell as the needs of its own high-quality development strategy, the Company vigorously transformsand upgrades towards digitization, networking, and intelligence, creates a new capability system,promotes the formation of new models and formats on the basis of enhancing traditional valuebene¬¤ts, and obtains sustainable competitive and cooperative advantages.

Continuously improvethe informationsecurity managementsystem andsuccessfully passthe ISO 27001: 2022

certi¬¤cation audit

Promulgate theMeasures for theAdministration ofInformation SystemData to strengthenthe protection ofdata classification

Regularly promotethe operation ofanti-leakage systemand reduce the riskof data leakage

Optimize the databackup strategy toreduce the risk ofdata loss

Promote theinformation systemprotection

In 2024, the Company formulated the following strategic objectives:

Risk, In?uence and Opportunity Management

The Company has rigorously implemented the Group's key initiatives to "empower operations withinformation technology and build a Digital Minmetals", actively advancing digital transformationefforts focused on intelligent factory construction and smart enterprise operations. Core digitalsystems such as smart office platforms, ERP, intelligent warehousing and logistics, intelligentlaboratories, and production operation platforms have been established, achieving seamless integrationacross business functions, continuously enhancing data-driven capabilities and digital governance.Regarding data security, the Company conducts annual offensive and defensive drills (red team/blue team exercises) and emergency response operations, with all employees signing responsibilitycommitment letters and undergoing yearly performance evaluations. For customer privacy protection,the Company implements a company-wide anti-leakage system to encrypt local data and requireapprovals for external transfers, while all business entities incorporate privacy-by-design principlesthroughout product development lifecycles. These measures effectively safeguard data security andcustomer privacy, reducing various risks associated with cybersecurity issues.

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

6970

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Indicators and TargetsIn 2024, the Company achieved digital coverage exceeding 75% across key business processes,marking significant progress in digital transformation. Regarding customer privacy protection, theCompany has not received any complaints related to customer privacy infringement or loss of customerdata, and no major data security or privacy breach incidents have occurred.

Compliance Awareness Campaign for Information Protection

Case

In April 2024, Minmetals New Energy took the "April 15 National Security Education Day" asan opportunity to launch a confidentiality awareness month campaign, advocating for everyone toenhance their awareness of con¬¤dentiality, maintain national security, guide cadres and employees toconsciously ful¬¤ll national security and con¬¤dentiality obligations, and improve their ability to counterespionage and properly carry out con¬¤dentiality work.

R&D Management SystemGovernanceTo further enhance R&D ef¬¤ciency and stimulate employees' innovation enthusiasm, Minmetals NewEnergy has formulated internal measures for the administration of including the Detailed Rules forIntellectual Property Management and Detailed Rules for Scienti¬¤c and Technological AchievementsManagement, in accordance with the Patent Law of the People's Republic of China and the PatentCooperation Treaty, to standardize innovation and R&D management.

Re¬¤ning and Advancing R&Dand Innovation

StrategyThe Company has established an in-depth R&D technology system for lithium battery cathodematerials, following a development strategy of "mass-producing one generation, reserving onegeneration, and pre-researching one generation". It continues to strengthen its technological layoutin the field of lithium battery materials, conducting targeted technology reserves and productdevelopment. Meanwhile, it closely monitors R&D trends in new battery material systems, seizingopportunities to maintain and consolidate its industry-leading position in the development of newenergy materials.

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Risk, In?uence and Opportunity Management

Indicators and Targets

The Company has established and improved a comprehensive, multi-level, and systematic sustainableR&D system and innovation mechanism, with a strong emphasis on incentive mechanisms forresearchers. The Company encourages technological innovation and provides special incentives fornew product development, process technology innovation, patents, and academic publications.

R&D Bases

The Company currently has three bases in Lugu, Tongguan, and High-tech, focusing on the researchand production of efficient battery materials, including ternary cathode materials and lithium ironphosphate cathode materials for the automotive power battery market, lithium cobalt oxide cathodematerials for the 3C electronic consumer product market, and nickel hydrogen materials for thehybrid vehicle market. The Company has established China's ¬¤rst pilot-scale service base for cathodematerials for power batteries, which was recognized as the "Hunan Provincial New Materials PilotPlatform". It possesses a complete set of basic testing facilities covering the entire process fromlab R&D to pilot-scale verification. It has obtained multiple qualifications, including the NationalEnterprise Technology Center and a Postdoctoral Research Workstation, and has also received CNASLaboratory Accreditation Certi¬¤cate.

Innovation PlatformsThe Company has achieved remarkable results in R&D and innovation, with continuous improvementin technological innovation capabilities. All four national and provincial-level sci-tech projectsundertaken by the Company successfully passed acceptance checks, among which key projects likethe Key Technologies and Management System for Intelligent Disassembly Production Lines ofRetired Products have been successfully demonstrated in practical applications.

The independently developed "Key Technology and Industrialization of New-Generation High-Voltage Low-Cobalt Single-Crystal Ternary Materials" and "Development and Industrialization ofHigh-Power Ternary Cathode Materials" have reached internationally advanced levels.

Technical StandardsThe standardization efforts have yielded fruitful results, with the Company participating in the draftingof a total of 80 implemented technical standards, including 11 national standards and 35 industrystandards. The industry standard Green Factory Evaluation Requirements for Lithium-ion BatteryCathode Material Precursors edited by the Company, has been included in China's national-level GreenFactory Evaluation Standards List. Additionally, the industry standard Solid-State Lithium-ion BatteryCathode Materials, spearheaded by the Company, has been officially approved under the Ministryof Industry and Information Technology's "2024 Fourth Batch of Industry Standard Developmentand Revision Plan", accelerating R&D and application of solid-state battery technologies. In termsof standard construction, the Company continues to make significant R&D investments, constantlystrengthening its standard system framework to empower the standardized development of theindustry.

Recognitions and AwardsAdditionally, the subsidiary Changyuan Lico New Energy was recognized as the "Changsha CapacityExpansion and Upgrading Enterprise R&D Center". This year, the Company was awarded two"Excellent Technical Standards" prizes by the National Technical Committee for Standardization ofNonferrous Metals. Among them, the national standard Lithium-rich Lithium Iron Oxide won theThird Prize in Technical Standards from the National Technical Committee for Standardization ofNonferrous Metals, and the industry standard Lithium Nickel Cobalt Manganese Oxide received theSecond Prize in Technical Standards from the same committee. The invention patent titled A Grid-likePorous Precursor Material and Its Preparation Method, and A Cathode Material (202010253246.5) ofthe subsidiary Jinchi Energy was approved for the Second Prize of the Hunan Patent Award.

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Industry AlliancesThrough the establishment of "project + talent + platform" innovation mechanism, the Companyjoined the Hunan Solid-state Battery Technology Innovation Consortium, and deeply participated ineight industry organizations such as Hunan Battery Industry Association, actively playing a bridgerole and accurately grasping the development trend of the industry. It invested RMB 230 millionin special scienti¬¤c research funds throughout the year, implemented innovative incentive policies,stimulated the innovative vitality of scienti¬¤c researchers, and provided core technical support for thehigh-quality development of enterprises.The Company has joined the "Solid-State Battery Industry Innovation Consortium" organized bySASAC as a cathode supply chain participant. The Company has joined various industry associationsand alliances, including the Hunan Battery Industry Association, Hunan Advanced Materials IndustryAssociation, China Power Battery Recycling and Cascade Utilization Alliance, National NonferrousMetals Standardization Technical Committee, Changsha-Zhuzhou-Xiangtan Advanced Energy StorageMaterials Industry Alliance, Hunan Advanced Battery Materials and Battery Industry TechnologyNew Strategic Alliance, China Industrial Association of Power Sources, and Changsha Association ofScience and Technology for Enterprises and Institutions, helping the Company stay informed aboutindustry trends and access market intelligence.

The "Key Technologies and Industrialization of New Generation High-voltage Ternary Low-cobaltSingle Crystal Materials" project adopts precise co-precipitation, double in-situ coating and othertechnologies to solve the structural and interface stability problems of medium and high nickelsingle crystal materials under high voltage, and meet the new generation of power batteries for longendurance, ultra-fast charging and long cycle requirements. This product has outstanding innovationand leading performance, and its overall performance has reached the international advanced leveland has been widely recognized by domestic and foreign customers. In addition, the industrializationof a new generation of medium-high nickel, low-cobalt, and high-voltage cathode materials hasbeen achieved, with remarkable results. The "Development and Industrialization of High-PowerTernary Cathode Materials" project studies the key production technologies of high-speci¬¤c-weight,low-impedance ternary high-power products, focusing on the development of key technologies formorphology synthesis and regulation. This technology not only ¬¤lls the gap in the market of cathodematerials for HEV in China, but also breaks the international monopoly on the technology of ternarycathode materials with high speci¬¤c resistance and low impedance, cultivates a complete industrialchain from precursors to cathode materials, and can meet the demand for high-rate charge-dischargeperformance in the power ¬¤eld, with remarkable economic bene¬¤ts. The overall technology of bothachievements has reached the international advanced level.

7473

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

The Company places high importance on intellectual property protection. In compliance with the PatentLaw of the People's Republic of China, the Patent Cooperation Treaty, and the Implementing Regulationsof the Patent Law of the People's Republic of China, the Company has established internal managementrules such as the Detailed Rules for Intellectual Property Management, the Detailed Rules for Scientificand Technological Achievements Management, and the Measures for the Administration of Scienceand Technology, to safeguard independent innovation achievements, promote technology transferand commercialization, thereby providing intellectual property support for the Company's sustainabledevelopment. The Company has improved the quality of patent drafting and mining by collaborating withoutstanding patent law firms, aiming to build a high-quality product patent portfolio. Additionally, it hasintroduced an industry-standard patent search system to strengthen in-house patent search and analysiscapabilities, as well as enhance the construction of its patent database.As of the end of 2024, the Company holds a total of

Intellectual Property Protection

5G Factory

162 valid patents

26 invention patents

18 domestic invention patents

3 utility model patents

3 utility model patents

117 invention patents1 invention patent granted in Japan44 utility model patents3 software copyrights

29 new domestic patent applications

2 patent applications were ?led underthe Patent Cooperation Treaty (PCT)21 new patents were granted

Signing Ceremony of Cooperation Agreement Between Minmetals NewEnergy and Professor Ma Cheng's Team from USTC Successfully Held

Kickoff Meeting Successfully Held for Changsha Major Science & TechnologyProject Led by the Company

Case

Case

Minmetals New Energy successfully held a cooperation signing ceremony with Professor Ma Cheng'sresearch team from the USTC and Guningjiyuan they founded. Zhang Jinjin, Vice General Managerof Minmetals New Energy, and Professor Cheng Ma from the USTC, signed a collaborative contracttitled Development of High-Nickel Cathode Materials for All-Solid-State Batteries, agreeing to jointlydevelop cathode materials compatible with all-solid-state batteries within two years. In addition, theparties also signed a strategic cooperation agreement to strengthen multi-faceted cooperation, build anindustrial ecosystem, and promote the commercial application of technology.

In May 6, the Launch Ceremony of the Changsha Municipal Major Scienceand Technology Project ¡ª ¡°Key Technologies for the Preparation ofLithium Manganese Iron Phosphate Cathode Materials¡± ¡ª was successfullyheld at the Central South University Science and Technology Park. Theproject, led by the Company in collaboration with the Hunan ZhengyuanInstitute for Energy Storage Materials and Devices, aims to address criticalindustry-wide technical challenges such as low conductivity, poor rateperformance, and short high-temperature cycle life in lithium manganeseiron phosphate (LMFP) cathode materials for lithium-ion batteries, therebypromoting the industrial application of next-generation LMFP technology.

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance

Strategy

The Company has optimized the structure of the Supplier Management Committee in accordancewith internal regulations such as the Measures for the Administration of Supplier, Measures for theAdministration of Customer and Supplier Credit Risk, and Procurement Management Regulations,to clearly define functions at all levels, enable more efficient and specialized division of laborand collaboration, so as to guarantee meticulous "dedicated personnel for dedicated tasks" in allmanagement activities.

The supplier management adheres to the principles of "uni¬¤ed management, dynamic evaluation, andselective retention". By building a risk management system for the entire supply chain, it achievesfull cycle control from supplier admission to exit, ensuring supply chain stability and reducingprocurement risks. In supplier quality management, the Company establishes a comprehensiveevaluation system to dynamically assess suppliers and classify them into different grades, whileimplementing a "blacklist" mechanism to control the quality of supplied materials at the source.

Admission

Management

Evaluation

Audit

The supplier admission process is conducted via the China Minmetals supply chainplatform, involving the review of business licenses, credit status, qualificationcerti¬¤cates, and system certi¬¤cations. Indicators such as enterprise scale and ¬¤nancialstatus are also considered. Only upon passing the admission process can suppliersparticipate in bidding, quotation, and other business activities.

The Company enforces a stringent quality management process that covers all stagesincluding product introduction, random spot inspections, and comprehensive controlover suppliers¡¯ products, production, and sourcing.

Contract evaluations (including process and completion evaluations) and year-endevaluations are conducted through the supply chain management platform. Annualscores are consolidated to determine supplier grading, and non-compliant or blacklistedsuppliers are restricted or prohibited from further use.

Key raw material suppliers are subject to unscheduled spot checks and annual audits.Unauthorized changes are strictly prohibited, and the use of materials from high-riskregions is forbidden to help suppliers identify and mitigate supply chain risks.

Collaborative Value Chain Management

7877

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

7980

Community Section:

Spreading Genuine Compassion,Protecting Deeds of Kindness

Risk, In?uence and Opportunity Management

Indicators and Targets

The Company has developed the Management Procedures of Responsible Minerals Supply Chain DueDiligence to guide the identi¬¤cation, prevention, and mitigation of risks in the supply chain of mineralresources that may be used as raw materials.

Minmetals New Energy also ensures supply chain security through technological innovationand industrial upgrading. As a "Three Products" benchmark enterprise in Hunan Province, theCompany leverages its subsidiary, the "Hunan Provincial New Materials Pilot Platform", to enhancetechnological conversion capabilities, and continues to develop lithium iron phosphate products.At the same time, the Company secured approval for two "unveiling and commanding" projectstargeting key products in Hunan Province's manufacturing sector. It also passed three scientificand technological achievements evaluations, including "Development and Industrialization of KeyTechnologies for High-Energy-Density Single-Crystal Ni-Rich Ternary Cathode Materials" and "KeyTechnologies and Industrialization of High-Voltage, High-Rate Polycrystalline Cathode Materialsand Their Precursors for Lithium-Ion Batteries". Additionally, leveraging its provincial-level platformquali¬¤cations and improved ef¬¤ciency in achievement transformation, the Company has established asafety system encompassing product performance, technological reserves, industrial capabilities, andquality standards, enhancing upstream-downstream collaboration and effectively addressing marketchallenges.

The Company has established a supplieradmission and exit mechanism to implementfull-process management from onboarding tophase-out. By signing documents such as theIntegrity Commitment Letter and IntellectualProperty Registration Form, the Companyclosely monitors risks related to supplierintegrity, unauthorized changes, supplychain mineral sourcing, intellectual propertyprotection, and operational risks to ensuresuppliers operate in compliance.

The Company advocates the use of recycledraw materials and promotes the development ofa green supply chain. Environmental and socialresponsibilities are integrated into managementpractices to reduce resource consumption andcarbon emissions.

The Company has formulated the SpecialProcurement Management Procedures forMaterials, establishing an emergency reviewmechanism to address supply chain disruptionsand enable short-term use or emergencyprocurement of suppliers or products listedoutside the quali¬¤ed directory.The Company has formulated the TradeBusiness Implementation Rules to innovatetrade channels and expand handling approachesin response to risks such as raw materialoverstock and price volatility. It has alsoimplemented the Management Proceduresof Responsible Minerals Supply Chain DueDiligence to carry out due diligence in linewith the Responsible Critical Mineral Initiative(RCI), requiring suppliers to sign compliancedeclarations to ensure that the sources ofminerals meet international standards.

For key products, the Company has deployedmultiple alternative suppliers across regionsto mitigate supply risks caused by seasonalor policy-related force majeure events. Along-term procurement model is promoted toenhance cooperation stability, with long-termsuppliers being upgraded to strategic partners.

The Company has developed a digital dashboardsystem on its supply chain platform, enablingfull-process traceability and recordkeepingfrom procurement to sales. Real-time datavisualization ensures compliance and standardconformity across all stages.

Integrity Management

Green Supply

Emergency Response

Responsible Procurement

Diversified Layout

Digital and Intelligent Management

Harmony with Nature,Empowerment through Ecology

Governance Section:

Multi-stakeholder Co-governance forCollaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Minmetals New Energy complies with the relevant provisions of the Measures for the Administration ofDonation of China Minmetals Corporation and has formulated its own Measures for the Administration ofDonation. The Company actively carries out public welfare initiatives in areas such as poverty alleviation,educational support, and voluntary blood donation. In 2024, the Company organized a total of 22 volunteerinitiatives and donated RMB 28,000 in ¬¤nancial aid to support 3 students from underprivileged families inHuayuan County, the designated assistance area.

Minmetals New Energy, responding to the national rural revitalization strategy, contributes modestly toadvancing rural revitalization and accelerating agricultural and rural modernization. By combining "bloodtransfusion" with "blood making", the Company focuses on education, consumption, and employment as keydrivers, synergized with industrial technology empowerment, to inject sustainable development momentuminto rural revitalization.In 2024, Party Committee members of the Company led teams to conduct on-site research in multiplelocations, visiting and offering condolences to assisted families, and provided targeted educational grants tosupport ¬¤nancially disadvantaged students, aiming to break the cycle of intergenerational poverty througheducational assistance.Additionally, the Company focuses on consumption-based assistance to support the development ofspecialty agricultural products in Huayuan County, its designated regions. By opening new markets andexpanding sales channels, the Company purchased specialty agricultural products from assistance regionssuch as Shibadong Village through centralized trade union procurement, cafeteria sourcing, and other meansthroughout the year. It also actively participated in initiatives such as the "Assistance Through ConsumptionCampaign by Central SOEs", and encouraged its employees to voluntarily purchase goods to broaden saleschannels for agricultural products and boost farmers' incomes.

The Company also provides employment assistance to supported regions by actively engaging withseven designated counties. It has offered 14 job positions covering multiple ¬¤elds such as production andmanagement, enabling local residents to secure employment near their homes and enhance their self-development capabilities.Welfare Activities

Rural Revitalization

Minmetals New Energy Granted RMB 28,000 Scholarshipsto Students from Impoverished FamiliesCase

In November 2024, the research team from Minmetals New Energy visited households receivingassistance in Lianghe Village and Mala Village, Huayuan County, to offer condolences and conductsurveys. The Company donated RMB 28,000 in ¬¤nancial aid to three underprivileged students, aimingto improve rural education quality, break the cycle of intergenerational poverty, and inject talentvitality and sustainable momentum into rural revitalization.

Public Welfare Bene¬¤ts Society

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Minmetals New Energy has always stayed true to its founding mission, with Party building asthe guiding principle, advancing governance modernization in compliance with regulations. TheCompany continuously optimizes its organizational structure, enhances the functions of the Boardof Directors and Board of Supervisors, and strengthens the capabilities of the management teamto fully empower the Board and standardize delegated authority management. In terms of lawfuland compliant operations, the Company has established an integrated system for internal control,internal audit, compliance, and risk management to uphold legal integrity and reinforce cleangovernance. Meanwhile, the Company places high importance on investor relations, safeguards therights and interests of shareholders and creditors, and ensures information disclosure in accordancewith regulations.

Governance SectionMulti-stakeholder Co-governancefor Collaborative Development

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of KindnessMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

8586

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

The Company strictly adheres to relevant intra-Party regulations such as the Constitution of the CommunistParty of China, the Regulations on the Work of Branches of the Communist Party of China (For TrailImplementation), and the Guiding Opinions on Strengthening the Party Leadership in Central SOEs'Corporate Governance Improvement, and has established 23 internal management systems including theWork Rules of the Company's Party Committee and the Work Rules of the Company's Party BuildingLeading Group. In line with the Company's equity structure and mixed-ownership characteristics, it ¬¤rmlyupholds the fundamental principle of "maintaining the two consistencies" to establish a sound moderncorporate governance system featuring 'the Party organization steering direction, the Board of Directorsmaking strategic decisions, and the executive management overseeing operations". Speci¬¤cally, the Board ofDirectors is responsible for "setting strategy, making decisions, and mitigating risks"; the Party Committeeensures "providing direction, managing the overall situation, and ensuring implementation"; and theExecutive Management Team focuses on "business planning, execution, and management enhancement".The Company will advance these efforts in an integrated manner and achieve ¬¤ve 100% targets under thesame standards:

100% of subsidiaries will have Party building incorporated into their articles of association, 100%of Party secretaries will concurrently serve as chairman (or executive director), 100% of Partyorganizations will establish rules for decision-making, 100% of Party organizations will implementthe pre-discussion procedure for major issues, and 100% of Party organizations will have theiroperational funding fully secured, so as to ensure the integration of Party leadership into every aspectand throughout the entire process of corporate governance.

The Company will further advance the reform of implementing fixed-term and contracted managementfor the managerial team. All members of the Executive Management Team will be subject to term-basedappointments, with their positions and compensation strongly linked to business performance.

The Company's Party Committee will ¬¤rmly uphold the "Two Upholds" as the highest political principle, andwill ¬¤rmly uphold the "two safeguards" as the fundamental political discipline, conscientiously implement thedecisions and arrangements of the CPC Central Committee and the work arrangements of the superior partyorganizations, formulate the "Measures for the Administration of the Company's Implementation of GeneralSecretary Xi Jinping's Important Instructions" and the "Implementation Measures for the "First Priority"System of the Company's Party Committee", and improve the "Log of Company's Implementation of GeneralSecretary Xi Jinping's Important Instructions" to ensure that the work is always aligned with the spirit of theParty Central Committee and the requirements set by higher-level Party organizations. By strengthening thestudy of party discipline and political training, the political judgment, political understanding, and politicalexecution of primary-level party branch secretaries and party affairs staff have been effectively improved,guiding party members and cadres to better perform their duties. In 2024, the Company has conducted studysessions on 28 policy directives and formulated 28 corresponding implementation measures.

Focus on achieving a deeper understanding by making solid efforts to study and comprehend thoroughly. TheCompany has always regarded the study of Xi Jinping Thought on Socialism with Chinese Characteristics fora New Era as its primary political task, strictly implemented the "First Priority" learning system, and set thestudy of the Party Committee's Theoretical Central Study Group as a "major course".Focus on achieving thorough understanding by emphasizing internalization. The Company has fullyimplemented the spirit of the 20th National Congress of the Communist Party of China and the Third PlenarySession of the 20th CPC Central Committee, and focused on studying and discussing General SecretaryXi Jinping's new ideas, new viewpoints, and new conclusions on comprehensively deepening reform. Theprimary-level Party organizations have effectively motivated Party members and cadres to devote themselvesto reform and development and strive for excellence by organizing activities such as the "Discussion onPracticing in Posts and Developing New-Quality Productive Forces" through the "Three Meetings and OneLecture" system alongside the study and implementation of the plenary session spirit, along with educationalcampaigns like "Promoting the Plenary Session Spirit and Deepening Enterprise Reform" and the specialeducation initiative "60-Day Sprint for a Year-End Boom".

Adhering to Party Building and Guide

Political Development

Ideological Development

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of KindnessMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

8788

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

The ninth Centralized Study Session of the Party Committee's theoretical study group in2024

Conference on Disseminating the Spirit of the Plenary Session

Case

In September 11, Liuquan Hu, Party Secretary and Chairman of Minmetals New Energy, delivereda speech on the theme of "Study and implement Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era and the spirit of the Third Plenary Session of the 20th CPC CentralCommittee, and achieve annual goals and tasks with greater efforts and more practical measures" toall party members and cadres of the Company. General Manager and Deputy Party Secretary, ZhangZhen, and other members of the Party Committee attended the presentation session. Deputy PartySecretary Lu Yaohui presided over the session.

The Company currently has more than 300 party members, adhering to the working mechanism of "monthlysupervision, quarterly inspection, half-year evaluation and promotion, and annual inspection", establishingthe orientation of "all work to the branch", and taking the responsibility of focusing on the grassroots andthe branch, and promote construction of primary-level party organizations by taking "standardization andnormalization" as the criterion. The Company continues to optimize the party organization structure to ensurethat the principal person in charge of the department "shoulders both party and government administration".

Organizational Development

Focus on achieving 'transformation' by emphasizing practical application of knowledge. The Companyadheres to integrating Party building with production and operations, leveraging the "Five Reliefs"mechanism to foster employee consensus, namely, an ideological and political work mechanism to addressemployees' concerns in thought, relieve mental burdens, enrich cultural needs, alleviate psychologicalpressure, and resolve practical difficulties, ultimately unify minds, consolidate shared purpose, and drivecollective efforts, so as to provide strong ideological assurance for advancing the Company's high-qualitydevelopment.In 2024, the Company¡¯s Party Committee's theoretical study group conducted 10 centralized study sessions,implemented 22 "First Priority" study sessions, and ensured all Party member cadres completed an averageof over 48 hours of political theory study. The senior managerial staff and Party organization secretariesdelivered 83 Party lectures, with over 300 participations from Party members and cadres.

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of KindnessMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

8990

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

The Company regularly implements the reminder mechanism for party organization term changes andadjustments, urges all primary-level party organizations to complete the election and adjustment of membersin a timely and standardized manner, select and strengthen branch secretaries and branch committeemembers, to ensure the continuity of grassroots organizational strength. Meanwhile, the revised PartyMembership Fee Collection, Use, and Administration Measures for Primary-level Party Organizations in theCompany was issued to standardize the scope of use and approval procedures for Party fees. In accordancewith requirements, the Party Committee's dedicated Party fee account has been transferred to the ¬¤nancialdepartment for management, further strengthening the standardization of Party fee collection, use, andadministration within the Company.

The Company strictly complies with relevant laws and regulations such as the Company Law, SecuritiesLaw, Code of Corporate Governance for Listed Companies, and Rules of the Shanghai Stock Exchangefor Listing Stocks on the Sci-Tech Innovation Board, and has established internal governance documentsincluding the Articles of Association, Rules of Procedure for the General Meeting of Shareholders, Rulesof Procedure for the Board of Directors, Rules of Procedure for the Board of Supervisors, and Measures forthe Administration of Independent Directors, to establish a governance structure with the General Meetingof Shareholders, Board of Directors, and Board of Supervisors serving as respective authorities for decision-making, execution, and oversight. With clearly de¬¤ned responsibilities and collaborative interaction amongall governance bodies, effective operation of corporate governance mechanisms can be ensured. The GeneralMeeting of Shareholders is the highest authority of the Company, responsible for deciding on the Company¡¯sbusiness policies and investment plans. In 2024, ¬¤ve General Meetings of Shareholders were held.The Company is committed to achieving fairness and diversity in the composition of the Board of Directors,carefully balancing factors such as gender, professional expertise, and backgrounds to ensure scienti¬¤c andcomprehensive decision-making, thereby driving the Company's continuous progress. The Board of Directorshas established four specialized committees: The Audit Committee, the Nomination Committee, theStrategy Committee, and the Remuneration and Appraisal Committee, with de¬¤ned scope of responsibilitiesand detailed implementation rules formulated for each committee. All committees give full play to theirprofessional expertise to ensure the legality, scienti¬¤city, and correctness of the collective decision-makingof the Board of Directors, effectively enhance the transparency and ef¬¤ciency of corporate governance, andfurther solidify the foundation for the Company's long-term and stable development.

Organizational StructureOptimizing Corporate Governance

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of KindnessMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

Board of Directors meetingBoard of SupervisorsSpecial committees

Extraordinary general meetings, and the 2024annualgeneral meeting of shareholders

MeetingMeetingMeeting

Reviewedproposals

Reviewed proposalsReviewed proposalsReviewed proposals

2234

As of 2024

graduatestudents

doctoral student

undergraduatestudents

Board ofDirectors

The Board Office organized and conducted a total of

Audit CommitteeNomination CommitteeStrategy Committee

Covering topics such as periodic reports, fundraising, and executive changes, andensured proper reception of the meeting as well as the archiving of relevant materials.Positive results have been yielded in strengthening board development and improving thegovernance system.

To ensure transparency and reasonableness in the management compensationdecision-making process and pay structure, the Remuneration and AppraisalCommittee recommends compensation policies and their formulation proceduresto the Board of Directors. After thorough consideration of industry benchmarks,position responsibilities, tenure length, company performance, and riskexposure, it reviews and determines the compensation and incentive packagesfor senior executives.Meanwhile, the Company's Board of Directors places great emphasis on enhancing the professionalcompetencies of directors, supervisors, and senior management. It regularly arranges for relevant personnelto participate in specialized training programs, ensuring they stay abreast of cutting-edge industry trendsand comprehensively improve their professional capabilities, so as to provide solid support for the scienti¬¤crigor of the Company's strategic decision-making and the efficiency of its operational management. Thetraining program includes specialized courses from the Shanghai Stock Exchange as well as diverse traininginitiatives from other relevant institutions, employing various training methods to enhance participants'understanding and execution capabilities in corporate governance and ESG management.

Compensation and Training for the Management

The Company has actively implemented the Board of Directors' authority. Since the establishment of itssecond-term Board of Directors of directors in 2022, a total of

board meetings have been held, with

proposals reviewed and approved. The Implementation Plan for Exercising the Board of Directors'Authorities has been formulated and implemented, and the List of Decision-Making Items and Processes atthe Headquarters has been revised.Strictly standardize the authorization of Board of Directors. The Measures for the Administration of BoardAuthorization was formulated to clarify management requirements for authorization plan development,execution, implementation, oversight, and adjustments, based on the Company's operational decision-making needs.Strengthen the internal governance of the Board of Directors. With the Board of Directorsas the responsible entity and the Chairman as the primary responsible person, formulate and implementthe Measures for the Administration of Information Disclosure. In strict compliance with regulatoryrequirements, the Company ensures that major matters undergo rigorous procedures.

Effectiveness Evaluation for Board of DirectorsThe Board of Supervisors, as the Company's supervisory body, is responsible for monitoring the ¬¤nancialstatus, business operations, and the performance of directors and senior management. It has the authorityto review financial materials, rectify violations, propose the convening of interim shareholder meetings,submit proposals, and, when necessary, ¬¤le lawsuits against directors and senior management, all dedicatedto safeguarding the legitimate rights and interests of the Company and its shareholders. As of the end ofthe reporting period, the Board of Supervisors consists of 3 members, with two employee representativesupervisors. Female representation on the Board reaches

66.6%

.

In 2024, thetraining coveragerate for directors,supervisors, andsenior managementin of¬¤ce reached100%

.

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,Protecting Deeds of KindnessMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

9394

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

In line with regulations such as the Basic Standards for Enterprise Internal Control and SupportingGuidelines, the Company has established internal control supervision mechanisms, includingthe Internal Control Evaluation Measures, Measures for the Administration of Internal ControlAudit, Internal Audit Management Regulations, Internal Audit Project Management, Measuresfor Investigating Liability for Illegal Business Investment, and Measures for the Administrationof Rectifying Audit Findings, and carried out annual evaluations to correspond internal controlstandards with rules and regulations, and completed inspections and assessments in all areasincluding corporate governance, listing compliance, integrity, safety and environmental protection,production quality, and contract texts. Through this series of measures, the Company will continue toimprove its internal control system, enhance its core momentum, improve its core competitiveness,and lay a solid foundation for high-quality development.

Under the leadership of the Company's Audit and Accountability Supervision Leading Group, theinternal audit department has consistently adhered to the working philosophy of "strengtheningoversight, promoting management, preventing risks, and creating value", closely aligning withthe Company's key strategic priorities, carried out all audit activities in strict accordance with theCompany's strategic objectives and overall development goals, fully leveraging audit professionalcapabilities, audit management expertise, and audit service competencies. First, the Company hasorganized and held leading group meetings to thoroughly study and implement the spirit of the 20thNational Congress of the Communist Party of China, the first meeting of the 20th Central AuditCommittee, and General Secretary Xi Jinping's important speeches and important instructions on

audit, and study and implement relevant audit; Second, the Company's Party Secretary and chairmanHu Liuquan has always insisted on high-level leadership, attached great importance to audit,personally arranged and deployed, personally followed up and supervised, and actively promoted thearrangements and deployments of the National Audit Of¬¤ce, the SASAC, and the Group on audit tobe implemented in Minmetals New Energy.

Internal Control

Internal Audit

Lawful and CompliantManagement and Control

The Company adheres to the philosophy of "respecting the law, complying with regulations, andcreating value", strictly following group compliance guidelines such as the Economic Sanctions andExport Control Compliance Guidelines, Corporate Governance Compliance Guidelines, BusinessPartner Compliance Guidelines, and Intellectual Property Compliance Guidelines. Internally, ithas established a series of compliance regulations, including the Measures for the Administrationof Compliance, Implementation Rules for Legal Compliance Management of Overseas Business,Guarantee Compliance Guidelines, Contract Review Key Points Compliance Guidelines, OverdueAccount Management Guidelines, and International Arbitration Institution Selection Guidelines,to build an effective, interconnected, and multi-level compliance management system that coversall areas, integrating compliance into corporate strategy, embedding compliance requirementsinto business processes, and fostering a culture of compliance within corporate values, and remaincommitted to preventing major compliance risks, strengthening compliance competitiveness, andlaying a solid foundation to become a global leader in the new energy materials industry.

Regulatory Compliance in Business Practices

The Party Committee, the Board of Directors, and the Executive Management Team perform their respectiveduties.

The Party Committee strengthens top-level design and promotes the implementation of compliancework plans.

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

The compliance management system construction group researches and decides on key issues.

The Board of Directors reviews and approves compliance policies, programs, and other documents,making decisions on major compliance matters.

The General Legal Counsel (Chief Compliance Of¬¤cer) conducts compliance reviews of importantcontracts and major business decisions, leads the handling of signi¬¤cant dispute cases, and ensuresthat relevant decisions comply with laws and regulations.

The Executive Management Team drafts compliance system construction plans and organizesresponses to major compliance risk incidents.

Various functional departments and business departments/divisions bear primary responsibility forcompliance management.

The Company has taken compliance review as a key initiative, achieving a 100% legal review rate forregulations, economic contracts, power of attorney, and major decisions throughout the year, and hasreviewed signi¬¤cant number of contracts, authorizations, policies, and decisions, and provided with a largeportion of the suggestions being highly adopted. The Company embeds compliance review checkpoints intowork¬¥ow processes, with compliance of¬¤cers deeply involved in all phases of major investment projects, andresolutely implements the "no decision without legal review, no unlawful decisions" mechanism to build acomprehensive compliance risk prevention chain.

"Three Lists and One Process"

"Risk Identi¬¤cation List""Compliance Duty

Checklist for Positions"

"Process Control Checklist"The Company organizes alldepartments to systematicallyreview external laws andregulations, national policies,industry standards, andinternal corporate rules,consolidate liability clausesthat violate complianceobligations, identify 1,900compliance risk points across13 domains, and categorizethem into high, medium, andlow impact levels to formulatea "Risk Identi¬¤cation List"

The Company has organizedtotal of 92 key personnelto establish 720 specificresponsibilities based ontheir roles, incorporatingrequirements from bothbusiness and supervisorydepartments, and to reflectthe responsibility compliancereviews, compliancemanagement, and complianceactions, forming a"Compliance Duty Checklistfor Positions"

Based on the risk identi¬¤cationchecklist and position-specificcompliance responsibilitychecklist, all departmentsanalyze and evaluate businessmanagement systems andprocesses to identify gapsand deficiencies in meetingcompliance requirements.In accordance with theserequirements, 90 processcontrol measures have beendeveloped, specifying theircontrol objectives, responsibledepartments and personnel,control frequency, and otherdetails, so that the compliancerequirements are integratedinto business managementsystems and processes to forma "Process Control Checklist".

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of KindnessMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

9798

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

The Company also places emphasis on fostering a culture of compliance. The Company has organizedlearning of Xi Jinping Thought on the Rule of Law, national security and confidentiality, labor relations,Bidding Law of the People's Republic of China, data protection, ¬¤nancial management, contract management,intellectual property rights, workplace safety, and supply chain compliance training, and actively carried outcompliance publicity, to strengthen employees' compliance awareness.

The First Interactive Exchange Event for 2024 of the Central SOE Legal WorkCollaboration Group (Group 8)

Case

In April 12, 2024, the first interactive exchange event for 2024 of the Central SOE Legal WorkCollaboration Group (Group 8), hosted by the Policy and Regulation Bureau of SASAC of the StateCouncil, and organized by the Central SOE Legal Work Collaboration Group of China MinmetalsCorporation was successfully held at Minmetals New Energy.Various departments held discussions on topics such as improving corporate governance structuresin line with the new Company Law and the "reducing backlog, controlling new cases" initiative. TheLegal Department of Minmetals New Energy shared specialized insights on intellectual propertymanagement, and expressed that it will effectively play the supporting and guaranteeing role ofthe rule of law in enhancing the core competitiveness of enterprises and promoting high-qualitydevelopment, and actively promote the rule of law in enterprises, to prevent and resolve litigationrisks.

Themed Legal Education CampaignCaseIn September, In order to implement Xi Jinping Thought on the Rule of Law, effectively strengthenthe legal education of the Company's employees, improve the legal awareness of all employees, andstrengthen the prevention and control of legal risks such as "pornography, gambling and drugs","drunk driving and drunk driving", and "online loans", on September 13, 2024, Minmetals NewEnergy invited Wu Xianhua, a senior professor of law and well-known lawyer at the Party School ofthe CPC Changsha Municipal Committee, to carry out special legal education. The Legal Departmenthas compiled and interpreted the regulations on handling and punishing common illegal cases in theGroup and the Company¡¯s systems.

In 2024, the Company clearly defined a checklist of 65mandatory compliance review items and established a dual-review mechanism involving both legal affairs and the generalcounsel for major decisions. It strictly enforced a 100%review rate for policies, contracts, authorizations, and projectdocuments. Additionally, the Company conducted a self-assessment of its compliance system against 43 key indicators,and developed and rigorously implemented corrective actionplans to address any identi¬¤ed gaps.

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

The Company strictly complies with the Comprehensive Risk Management Guidelines for CentralEnterprises and the Basic Norms for Internal Control of Enterprises. It has established the CompanyComprehensive Risk Management Regulations and the Measures for the Administration of Company RiskManagement Reporting, continuously improving a well-de¬¤ned and systematic risk management framework,forming a strategic decision-making of the Board of Directors as the core, an execution-oriented executivemanagement team, and a collaborative three-lines-of-defense model (business units, risk control/functionaldepartments, and audit department) as key safeguards, and the coordinated control of the three lines ofdefense as the support, promotes the construction of information systems such as treasury, BI, MES, andWMS, and continues to promote the gradual transformation of the internal control system from "humandefense and control" to "technical defense and control". The Company has focused on key areas, establisheda mechanism for dynamic assessment and monitoring of major risks, accelerated the construction of a digitalrisk control platform, promoted the upgrading of risk prevention and control capabilities, and accelerated theimprovement of a comprehensive, ef¬¤cient, and coordinated risk management system, so as to provide solidguarantees for sustainable development.

Risk Management

ProcessMeasures and results during the reporting period

RiskAssessment

The risk management department has organized an annual risk assessment at thecompany level, closely integrated with the Company's business and managementobjectives, comprehensively evaluated important risks, scientifically formulatedresponse strategies for the top ten risks, and focused on prevention and control.In 2024, the Risk Management Department employed a combination of methods suchas interviews and questionnaire surveys to conduct annual material risk assessmentsthrough a top-down and bottom-up approach. A total of 26 key risks were identified,with 78 critical monitoring indicators and warning thresholds developed as part ofthe initiative. A tiered management mechanism was established, classifying risks intored (strict control), yellow (warning), and green (normal operation) zones, therebyenhancing the precision and effectiveness of risk management.

RiskMonitoring

The Company has established a major risk response checklist, clarified the divisionof responsibilities between lead departments and implementation departments,strengthened accountability for risk management across all staff, and maintainedquarterly tracking of major risks to enhance the application of risk monitoring results,provide timely warnings, and oversee risk response measures.In 2024, focusing on the Company's top 10 key risks, the Company established a riskresponse inventory and formulated 41 countermeasures, and regularly collected bothinternal and external risk information.

ProcessMeasures and results during the reporting period

RiskTracking

In 2024, the Company continued to optimize its multi-tier risk management reportingmechanism, implemented emergency reporting procedures for major risk incidents,and maintained ongoing monitoring of occurred risk events. It routinely collectedboth internal and external risk information, issued risk alerts, and facilitated properresolution of risk incidents. For risk events that have been disposed of, it promptlyclosed the closed loop to ensure the effective functioning of the risk prevention andcontrol system for all personnel,processes, and systems.

RiskControl

Adhering to the principles of risk classification management, hierarchical management,and centralized management, the Company strengthens risk prevention and controlin key areas, and formulates risk control strategies based on classification, to enhancethe monitoring and early warning mechanism for major risks. Utilizing informationtechnology, the Company integrates the data flows of the six core systems of sales,procurement, material control, warehousing, finance, and risk control, and vigorouslybuilds a full-chain visualization platform to accurately empower business operations,timely warn of major risks, quantitatively support risk decision-making, to furtherimprove the level of dynamic risk warning, and build a resilient line of defense for theCompany's sustainable development.The Company has strictly prevented HSE risks, strengthened safety and environmentalprotection supervision, promoted the rectification of hidden dangers, and organizedvarious special emergency response drills and warning education. No serious injuriesor above workplace safety accidents occurred throughout the year, no general or aboveenvironmental pollution incidents occurred, and no new cases of occupational diseasesoccurred.The Company has strictly prevented credit risks, dynamically carried out "red, yellowand blue" risk ratings, strengthened intelligent risk warnings, and established an onlinemerchant credit rating model to improve efficiency by 66%, and specially promoted keyoverdue collection to prevent and resolve major overdue risks.The Company has strictly prevented price risks, strengthened budget management, andcoordinated production, sales and inventory balance, to strictly control inventory.The Company has strictly prevented the risks of industrial restructuring, increasedefforts in customer development, and achieved results in the lithium iron phosphatemarket.

Harmony with Nature,Empowerment through Ecology

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Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

ProcessMeasures and results during the reporting period

RiskControl

The Company has strictly prevented risks in the industrial chain, steadily promotedresource regeneration and recycling cooperation projects, actively negotiated nickeland phosphorus resource guarantees, and moved towards the direction of industrialchain integration.The Company has strictly prevented the risk of policy restrictions in Europe and theUnited States, paid close attention to changes in new energy tariff policies in Europeand the United States, and accelerated the international strategic layout, to helppromote overseas markets and deliver products.The Company has strictly prevented the risk of insufficient human resources supply,continuously improved talent planning, and strengthened echelon construction, toeffectively guarantee talent demand.The Company has strictly prevented intellectual property risks, improved theintellectual property management system, continuously enhanced patent reserves,strengthened the mining of high-value patents, and conducted patent infringementwarning retrieval and analysis, to improve risk prevention and control capabilities.The Company has strictly prevented compliance management risks, improved thehierarchical and classified compliance management system, optimized and improvedthe "three compliance checklists" of compliance management, and drawn 90 newcompliance process diagrams, covering 540 key nodes in the fields of finance, security,operations, etc., to form a practical compliance process list manual.The Company has strictly prevented public opinion risks, properly carried outpublic opinion monitoring, taken multiple measures to consolidate the ideologicalfoundation, and strengthened confidentiality awareness, to keep a tight control oninformation disclosure.

During the reporting period, the Company did not incur any significant losses, nor was it involved inexternal litigation or subject to penalties from regulatory authorities.

Among the above 10 major risks, 3 risks (price risk, talent loss risk, and policy risk)showed a downward trend, 1 risk (credit risk) increased due to market influence, and theremaining 6 risks remained stable and the same as the previous period.

The Company complies with national tax laws and regulations as well as the uni¬¤ed tax management systemof Minmetals, and has established tax management rules tailored to its business characteristics, including theMeasures for the Administration of Tax and Invoice Management System. The tax department collaborateswith ¬¤nance, legal, and business operations departments to ensure that tax compliance is synchronized withbusiness development.

Taxation Management

Tax Compliance Management

Tax Risk Prevention and Control

Tax Informatization Management

Invoice and Contract Management

Daily Tax Compliance: Strictly execute declaration and payment procedures for VAT, corporate income tax, environmentalprotection tax, etc., ensuring data accuracy and timeliness.Tax Incentives: Proactively apply for new energy and high-tech enterprise tax incentives to reduce tax liabilities.Cross-border Taxation: For import/export or international operations, ensure compliance with customs duties, VATrefunds, and transfer pricing regulations.

Internal Controls: Conduct internal audits and tax risk assessments (e.g., identifying risks through related-party transactionpricing, invoice management loopholes).

Audit Preparedness: Establish tax inspection response protocols, maintain complete business documentation, and conductregular tax health checks.

Utilize ERP systems such as SAP or UFIDA, or specialized tax management systems to achieve automated tax dataprocessing, declaration, and monitoring, thereby reducing human errors.

Strictly implement the process of issuing, receiving, and storing VAT invoices, and clearly de¬¤ne tax responsibilities incontract terms.

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

The Company strictly complies with laws and regulations such as the Criminal Law, Supervision Law,and Anti-Money Laundering Law, and rigorously adheres to both Party discipline and national laws. It hasestablished internal policies including: Measures for Handling Whistleblowing and Complaint Reports,Supervisory Inspection Measures for Three Majors and One Large, Implementation Rules for Oversightof the Central Eight-Point Directive on Conduct, Procedures for Registration and Disposal of Gifts, CashGifts, and Souvenirs, Employee Disciplinary Action Guidelines (Trial), Work Guidelines for Primary-LevelParty Organizations Reporting Major Issues to Discipline Inspection Bodies, Implementation Measures forConducting Integrity Talks with Key Position Personnel, and Measures for Implementing the AccountabilitySystem for Party Conduct and Integrity Building, to create a compliant and integrity-driven operatingenvironment, standardize employee conduct, prevent corruption, and safeguard stakeholder rights, therebyensuring the Company's sustainable development.Standardize the honest professional behavior of all the Company's cadres and employees, and carry outvarious production and operation activities in an open and transparent manner. Firmly oppose "pettycorruption" among all production and operation management cadres and front-line employees, maintain a'zero-tolerance' stance toward corruption and strictly prohibit any form of commercial bribery.The Company has established and improved a clean reporting mechanism to protect the rights and interestsof confidential reports and whistleblowers in accordance with regulations. The channels for reporting aredisclosed and kept confidential through official addresses, email addresses, reporting phone numbers,WeChat, and other channels. Relevant departments conduct irregular special oversight campaigns. Disciplineinspection and audit departments supervise key areas in accordance with the Bidding Law of the People'sRepublic of China and other regulations, advance the recti¬¤cation of irregularities in engineering projects,hold responsible parties accountable, and standardize approval procedures, to oversee maintenance,simpli¬¤cation, and technological upgrading projects to improve institutional frameworks. The Company hasidenti¬¤ed integrity risks in operations, standardized management procedures, and developed a prevention andcontrol checklist, and also conducted compliance training for employees at all levels to foster a culture ofintegrity, creating a fair, just, and trustworthy business ecosystem.

In 2024, the Company handled 7 problem clues, initially closed 5 cases, ¬¤led 2 cases, punished 7 people, andissued 3 disciplinary inspection recommendations. In 2024, the Company has no incidents of commercialbribery, corruption, or related lawsuits, and has demonstrated excellent business ethics, effectivelymaintaining a clean operating environment.Integrity ConstructionObserving Business Ethics

2024 Annual Conference on Party Conduct, Integrity, and Anti-Corruption Work and Warning Education Session

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Collaborative Development

Anti-Monopoly and Anti-Unfair Competition

In 2024, the Company organized compliance training covering key areas such as common legal risks,intellectual property, safety and environmental protection, quality control, antitrust, and anti-unfaircompetition, reaching approximately 4,500 participants in total. Additionally, the Company launched a"Compliance Promotion Month" campaign, which included activities like signing compliance commitmentpledges and hosting compliance knowledge competitions to enhance overall compliance awareness amongall employees. The Company has not been subject to litigation or major administrative penalties due to unfaircompetition practices.

The Company strictly complies with laws and regulations including the Anti-Monopoly Law of the People'sRepublic of China, the Anti-Unfair Competition Law of the People's Republic of China, the Provisionsof the State Council on the Standards for Merger Control Filing, the Provisions on Prohibiting MonopolyAgreements (Interim), and the Regulation on Prohibiting Abuse of Dominant Market Positions (Interim).In accordance with the Anti-Monopoly Compliance Guidelines of China Minmetals Corporation and theCompany's internal Measures for the Administration of Compliance, on the basis of comprehensivelypromoting compliance management, combined with compliance risk assessment, it focuses on strengtheningcompliance management in the fields of anti-monopoly and anti-unfair competition, and operates incompliance with all applicable anti-monopoly, fair trade and anti-unfair competition laws and standards athome and abroad, in the countries and regions where business is conducted, to ensure healthy competitionwith competitors, and maintain normal business dealings with customers, suppliers and sellers, therebypreventing monopolistic behavior.

The Company places high importance on communication with investors and continuously enhances investorrelations management. To protect investors' rights and interests and enhance capital market recognition,the Company has formulated Measures for the Administration of Investor Relations in accordance withregulatory documents such as the Working Guidelines for the Relationship Between Listed Companies andInvestors, to increase communication frequency and adopt innovative approaches, and actively engage withinvestors through multiple channels including the SSE E-Interaction platform, roadshows, reverse roadshows,investment conferences, and online meetings.

Investor Relations Management

Working Hand in Hand forShared Success

In 2024, the Company organized 4 performance briefing sessions, 1 "Visit to Listed Companies"event, and more than 30 on-site investor research activities, receiving over 100 investors. Throughmulti-level communication channels, investors have a more comprehensive understanding of theCompany's core values and development strategies, which is conducive to establishing long-term,stable, and trustworthy cooperative relationships between the Company and investors.

The Company, complying with relevant regulations such as the Company Law and the Securities Law,regards safeguarding the legitimate rights and interests of shareholders and creditors as important duties. Byregularly disclosing the Company's ¬¤nancial status, operating results, and major decisions to shareholdersand creditors, information asymmetry can be avoided, allowing shareholders and creditors to timely andfully understand the Company's dynamics, thereby providing strong support for making wise and rationalinvestment decisions.

Shareholders¡¯ and Creditors¡¯ Rights and Interests

Harmony with Nature,Empowerment through Ecology

Community Section:

Spreading Genuine Compassion,

Protecting Deeds of Kindness

Minmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Governance Section:

Multi-stakeholder Co-governance forCollaborative Development

The Company strictly abides by various regulatory regulations, adheres to fair, just, and open informationdisclosure standards, truthfully, accurately, completely, and timely discloses financial, operational, andgovernance information to stakeholders, and fulfills the disclosure responsibilities of listed companies, tosafeguard the right to know of all stakeholders.In 2024, the Company lawfully and compliantly disclosed more than 50 interim announcements and 4periodic reports, covering performance forecasts, related-party transactions, use and management of raisedfunds, and other types of disclosures, thereby effectively fulfilling its information disclosure obligationsas a listed company. By combining various forms such as text, charts, and images, investors can timelyunderstand the Company's operating situation and investment value. In terms of information disclosure, fullattention is paid to the readability of investors, reducing the dif¬¤culty of interpretation for investors. Annualenvironmental, social, and governance (ESG) reports and periodic reports in English are also disclosed, andcommunication with overseas investors is continuously valued. The Company strictly abides by variousregulatory regulations of listed companies, strengthens its main responsibilities, continuously strengthensinformation disclosure management, achieves "zero errors" throughout the year, and has won the highestlevel of A-level information disclosure assessment by the Shanghai Stock Exchange for two consecutiveyears.

Information Disclosure

Harmony with Nature,Empowerment through Ecology

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Spreading Genuine Compassion,Protecting Deeds of Kindness

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Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

In the new year, the Company will pursue steady progress with targeted breakthroughs to fullyaccomplish all annual business objectives; focus on core operations while driving growth atboth ends, accelerating the formation of a complete industrial chain closed-loop ecosystem;strengthen advantages and address weaknesses through enhanced incentives, boostingthe supportive and leading role of technological innovation. scientifically benchmark andinnovate mechanisms to comprehensively deepen reforms and promote quality and ef¬¤ciencyimprovement; adhere to the bottom line, ensure safety, and continuously and effectivelyprevent and resolve risks in key areas; and practice the "20-Character" standard for leaders ofstate-owned enterprises and take responsibility in practical work.The Company will steadfastly promote high-quality development to ensure the successfulconclusion of the 14th Five-Year Plan and the smooth start of the 15th Five-Year Plan,contributing to social development and progress!

Outlook

Minmetals New Energy will adhere to the guidance of Xi Jinping Thought on Socialism withChinese Characteristics for a New Era, fully implement the spirit of the 20th National Congressof the Communist Party of China and the Second and Third Plenary Sessions of the 20th CPCCentral Committee, conscientiously implement the decisions and arrangements of the CPCCentral Committee and the State Council and the work requirements of the Group, adhere tothe general working tone of seeking progress while maintaining stability, fully, accuratelyand comprehensively implement the new development concept, thoroughly implement therequirements of the inspection and rectification of the central government and the partycommittee of the Group and the responsible audit, and focus on stabilizing growth, graspinginnovation, strengthening industry, promoting reform, preventing risks, ensuring safety, andstrengthening party building.

110109

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Appendix 1: Key Performance Indicators

Environment

IndicatorUnit202420232022

Water UtilizationTotal water consumption10,000 metric tons122.78128.78150.87

Fresh water consumption10,000 metric tons82.4694.49101.99Total recycled waterconsumption

10,000 metric tons40.3234.2948.88Percentage of total recycled waterconsumption

%32.8426.63/Water consumption per millionRMB 1,000,000 revenue

metric ton / million RMB

revenue

221.66120.03/Energy UtilizationTotal energy consumption10,000 TCE8.497.918.35Direct energy consumption10,000 TCE0.95//Proportion of direct energyconsumption

%11.19//Fossil energy consumption10,000 TCE0.95//Gasoline consumptionLiter1,297.30959.46/Natural gas consumption10,000 TCE0.950.390.10Non-fossil energy consumption10,000 TCE0.04//Clean energy consumption10,000 TCE0.95//Proportion of clean energyconsumption

%11.19//Indirect energy consumption10,000 TCE7.55//Outsourced electric power10,000 TCE6.726.747.16Outsourced heatingpowersteam

10,000 TCE0.830.781.09Energy consumption per millionRMB 1,000,000 revenue

TCE /million RMB revenue15.337.37/

Environment

IndicatorUnit202420232022

Environmental Compliance ManagementTotal investment in environmental protectionRMB 10,0005,369.984,139.78/Proportion of total investment in environmentalprotection to operating revenue

%0.970.39/Amount of significant administrative penaltiesimposed by environmental authorities due toenvironmental incidents during the reporting period

RMB 10,0000.00//Pollutant EmissionDischarge of wastewater10,000 metric tons0.000.002.53Discharge of industrial wastewater10,000 metric tons0.000.002.53Ammonia nitrogen emissionsnitrogen

Pollutant equivalent / Totaldischarges (metric ton)

0.000.000.07 COD

Pollutant equivalent / Totaldischarges (metric ton)

0.000.001.61Exhaust gas pollutant emissions (ammonia gas)metric ton0.480.690.73Chemical oxygen demand (CODExhaust pollutantemissions (sulfuric acid mist)

metric ton0.370.060.59Exhaust gas pollutant emissions (PM)metric ton2.081.541.42Nitrogen oxide emissionsmetric ton4.62//Sulfur oxide (SOx) emissionsmetric ton1.28//

Waste Disposal

Total solid waste disposedmetric ton1,970.94/275General Volume of general industrial solid wastegenerated

metric ton1,607.60//Hazardous wastemetric ton363.34//Volume of hazardous waste disposalmetric ton363.34/400Total recycled and reused wastehazardous wastegenerated per RMB 1,000,000 revenue

metric ton / RMB 1,000,000

revenue

0.066//Total non-hazardous waste generated per millionRMB 1,000,000 revenue

metric ton / RMB 1,000,000

revenue

0.29//

Harmony with Nature,Empowerment through Ecology

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Spreading Genuine Compassion,

Protecting Deeds of Kindness

Governance Section:

Multi-stakeholder Co-governance for

Collaborative Development

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Environment

IndicatorUnit202420232022

GHG Emissions Management

Total GHG emissions10,000 tCO2e34.0733.0835.46Scope 1 greenhouse gas (GHG) emissions10,000 tCO2e2.671.711.28

Natural gas10,000 tCO2e1.540.640.14Carbonate10,000 tCO2e1.131.071.13GasolinetCO2e2.922.162.62Scope 2 greenhouse gas (GHG) emissions10,000 tCO2e31.4031.3634.19Outsourced electric power100 MWh5.465.495.83Outsourced heating power (steam)10,000 GJ24.2222.9232.25Reduction of GHG emissionstCO2e11,648//

Scope 1 emission reductiontCO2e4,359//Scope 2 emission reductiontCO2e7,289//Direct (Scope 1) GHG emissions per million RMB1,000,000 revenue

tCO2e / RMB1,000,000 revenue

4.821.59/Indirect (Scope 2) GHG emissions per millionRMB 1,000,000 revenue

tCO2e / RMB1,000,000 revenue

56.6929.23/GHG emission intensity per million RMB 1,000,000revenue

tCO2e / RMB1,000,000 revenue

61.5130.83/

Social

IndicatorUnit202420232022

Employee Recruitment and Employment

Total number of in-service employeesperson2,0642,3302,053Ethnic minority employeesminoritiesperson111148/Proportion of ethnic minority employees%5.386.35/Employees with disabilitiesperson5//Proportion of employees with disabilities%0.24//Demobilized military personnel employedperson32//Proportion of demobilized military personnel employed%1.55//

By type of employment

Full-time employeesperson2,0642,3302,053

By genderMaleperson1,5761,810/Femaleperson488520/Female%23.6422.3223.14

By age30 and belowperson66580866731-50person1,2511,4681,241Over 50person148124145

By professionProduction personnelperson1,2801,5901,454Sales personnelperson192018Procurement personnelperson18//Technical personnelperson593558433Financial personnelperson202319Administrative personnelperson134139129

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Protecting Deeds of Kindness

Governance Section:

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Collaborative DevelopmentMinmetals New Energy Materials (Hunan) Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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Social

IndicatorUnit202420232022

By degree of educationPh.D.person1214Master¡¯s degreeperson228207/Bachelor¡¯s degree or belowperson1,8242,109/

By geographical regionChina (the Chinese mainland)person2,0642,3302,053

Employee Remuneration and BenefitsSocial insurance coverage%100100/Average paid leave per employeeday55/Employee satisfaction rate%9897.29/Average salary per employeeRMB 10,00011.315.05/Average revenue generated peremployee

RMB 10,000252460.47/

Employee Development and TrainingTotal investment in employee trainingRMB 10,00046.8438.460.28Number of training sessions heldtime1,0681,3201,254Total length of training in the yearhour 104,351 58,282223,874Average length of training hours peremployee

hour 50.5625.01109.05Coverage of employee training%100100100

Employee Care and Assistance

investment in employee assistanceRMB 10,00018,000//Number of employees in difficulty whoreceived assistance

person9//

Innovation and R&D

R&D investmentRMB 100 million2.323.77/Proportion of R&D investment%4.183.51/Number of R&D personnelperson301282/Proportion of R&D personnel%14.5812.10/

Social

IndicatorUnit202420232022Total number of valid patents¡ª162141/Number of valid patents per million RMB1,000,000 revenue

¡ª0.0290.023/Number of software copyrightsregistered

¡ª33/Number of software copyrightsregistered per RMB 1,000,000 revenue

¡ª0.000540.00028/Health and Safety

Number of enterprises meeting certifiedfor workplace safety standardizationrequirements

¡ª1//Workplace safety investmentRMB 10,000732.7533.4/Proportion of workplace safetyinvestment to revenue

%0.080.05/Length of workplace safety traininghour58,00053,600/Average safety training hours peremployee

hour2823/Number of workplace safety trainingtime183161/Attendances for workplace safetytraining

attendance16,29513,930/Coverage of workplace safety training%100100/Investment in occupational injuryinsurance for employees

RMB 10,00081.47//Coverage of occupational injuryinsurance for employees

%100//Occupational illness incidence rate%0//Number of workplace safety incidentscase00/

Social WelfareCommunity welfare investmentRMB 10,0002.83.40/Community investment per million inrevenue

RMB 10,000 0.000510.00032/Number of local employees hiredperson1,8512,330/Proportion of local employees hired%89.6100/

Harmony with Nature,Empowerment through Ecology

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Governance

IndicatorUnit202420232022

Corporate Governance

Number of Shareholders¡¯ GeneralMeetingsMeetings of Shareholders

time535Number of meetings of the Board of Directorstime11910

Number of Audit Committee meetingstime55/Number of Remuneration NominationCommittee meetings

time2//Number of Nomination Committeemeetingsmeetings of the Strategy Committee

time2//Proportion of independent directors in the AuditCommittee

%66.6766.67/Proportion of independent directors in theRemuneration Committee

%66.6766.67/Proportion of independent directors in theNomination Committee

%66.6766.67/Number of meetings of the Board of Supervisorstime5710Attendance rate of BoD members%100.00100.00/Average tenure of board membersyear33/Is the CEO also serving as Chairman of the Board /No//Proportion of independent directors%37.533.33/Age standard deviation of directors, supervisors,and senior management

age6.978.35/Percentage of female directors%12.500.00/Proportion of independent directors serving morethan 6 years

%00.00/Percentage of independent directors holdingpositions in over 3 listed firms

%00.00/Whether the convener of the audit committee isan accounting professional

/Yes//

Governance

IndicatorUnit202420232022

Regulatory Compliance in Business PracticesNumber of compliance trainingtime13128Length of compliance traininghour27.52010Attendances for compliance training¡ª500488280Anti-corruption trainingtime484542Length of anti-corruption trainingtraininghour626055Number of participants receiving anti-corruption training

¡ª2,0001,5931,398Number of articles and cases related toanti-corruption themes pushed

time231712Investor Relation and Management of Shareholders¡¯ RightsPerformance presentationtime44/

Harmony with Nature,Empowerment through Ecology

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Governance Section:

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Chapter TitlesCentral Enterprise ESG Index

Stock Exchange Index

About this ReportG5.1; G5.2

Article 1, Article 2, Article 2,Article 4, Article 6, Article 7,Article 8, Article 10, Article

Message from Chairman/Article 2About Us/Article 12

ESG ManagementG5.1; G5.2

Article 2, Article 2, Article 8,Article 11, Article 13, Article14, Article 15, Article 16,Article 17, Article 18, Article19, Article 51, Article 52Communication with StakeholdersG3.1; G3.2; G3.3; G4.1;G4.2Article 9, Article 53Material Issues/Article 5, Article 7, Article 10

EnvironmentalSection: Harmonywith Nature,Empowermentthrough Ecology

Optimizing ResourceManagement

E.1.1; E.1.2; E.1.3; E.1.4;E.5.1; E.5.2; E.5.3; E.5.4

Article 34, Article 35, Article36, Article 37Practicing the Thoughton EcologicalCivilization

E.2.1; E.2.2; E.2.3; E.4.1

Article 29, Article 30, Article31, Article 32, Article 33

Combating ClimateChange

E.3.1; E.3.2; E.3.4; E.5.6

Article 20, Article 21, Article22, Article 23, Article 24,Article 25, Article 26, Article27, Article 28

Appendix II: Index List

Chapter TitlesCentral Enterprise ESG Index

Stock Exchange Index

Community Section:

Spreading GenuineCompassion,Protecting Deeds ofKindness

Building a Happy WorkplaceS1.1; S1.2; S1.3; S1.4Article 49, Article 50Protection of Customers¡¯Rights and Interests

S2.1; S2.2

Article 44, Article 47,Article 48Re¬¤ning and AdvancingR&D and Innovation

S2.3

Article 41, Article 42,Article 43Collaborative Value ChainManagement

S3.1; S3.2Article 44, Article 45Public Welfare Bene¬¤tsSociety

S4.2; S4.3; S4.4

Article 38, Article 39,Article 40

Governance Section:

Multi-stakeholderCo-governancefor CollaborativeDevelopment

Adhering to Party Buildingand Guide

G1.1Article 51Optimizing CorporateGovernance

G1.1; G1.2; G1.3Article 51Lawful and CompliantManagement and Control

S4.1; G2.1; G5.1; G5.2Article 52Observing Business EthicsG2.2; G2.3

Article 54, Article 55,Article 56Working Hand in Hand forShared Success

G3.1; G3.2; G3.3; G4.1;

G4.2

Article 9, Article 53

Note 1: The ¡°Central Enterprise ESG Index¡± refers to the Reference Indicator System for ESG Reports of Listed CompaniesControlled by Central Enterprises.

Note 2: The ¡°Stock Exchange Index¡± refers to the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of ListedCompanies¡ªSustainability Report (Trial)

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Protecting Deeds of Kindness

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Minmetals New Energy Materials (Hunan) Co., Ltd.Website: http://www.cylico.com/E-mail: cylico@minmetals.com

Tel.: 0731-88998117Address: No. 61 Yan'gao Road, Yuelu District,Changsha City, Hunan Province