Stock Abbreviation:Minmetals New Energy

Stock Code: 688779

Minmetals New Energy Materials (Hunan) Co. Ltd.Website: http://www.cylico.com/ Environmental Social and

Email: cylico@minmetals.com

Tel: +86 731-88998112 Governance (ESG) Report

Address: No. 820 Guyuan Road High-tech Development Zone Changsha City Hunan Province China Minmetals New Energy Materials (Hunan) Co. Ltd.About This Report

Report Description Currency Unit

This report is the annual Environmental Social and Governance (ESG) report issued by Minmetals New Energy Materials (Hunan) Co. Ltd. Unless otherwise stated this report uses Renminbi (RMB) as the currency unit.(hereinafter referred to as "Minmetals New Energy" the "Company" or "we"). In an objective standardized transparent and comprehensive

manner this report fully presents the Company's specific actions key practices representative cases and key performance indicators

regarding social responsibility performance ESG risk management and opportunity capture in 2025. It actively responds to stakeholder

concerns leading development through responsibility and demonstrating commitment through concrete actions continuously deepening

the Company's corporate social responsibility practices. Report Access

You may access and download this report from the official website of Minmetals New Energy (http://www.cylico.com) and the Shanghai Stock

Exchange website (https://www.sse.com.cn).Reporting Period

This is an annual report. Unless otherwise stated the reporting period covers January 1 2025 to December 31 2025. To enhance the compa-

rability and completeness of this report some content may trace back to previous years or include forward-looking descriptions. Feedback

Should you have any opinions or suggestions regarding the content of this report or the Company's environmental social and governance

performance please contact us through the following communication channels. Your feedback will help us further improve this report.Reporting Scope Tel: 0731-88998112

Email: cylico@minmetals.com

This report is based on Minmetals New Energy as the primary entity including its subordinate branches and subsidiaries (excluding entrust-

ed subsidiary). Unless otherwise specified the scope of this report is consistent with the consolidated financial statements in the Company's

annual financial report.Explanation of Terms

Basis of Preparation

Abbreviation Full Name

This report is prepared primarily with reference to the Guiding Opinions on Better Fulfilling Social Responsibilities of State-owned Enterprises and

the Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Central Enterprises issued by the State-owned Assets China Minmetals China Minmetals Corporation

Supervision and Administration Commission of the State Council (SASAC) the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation

Minmetals New Energy the Company we Minmetals New Energy Material(Hunan) Co.Ltd.of Listed Companies - Sustainability Report (Trial) and the Self-regulatory Guide for Listed Companies No. 13 - Preparation of Sustainability Reports

issued by the Shanghai Stock Exchange the GRI Sustainability Reporting Standards (GRI Standards) issued by the Global Sustainability Former name: Changyuan Lico Former Name: Hunan Changyuan Lico Co. Ltd.Standards Board (GSSB) as well as the United Nations Sustainable Development Goals (UN SDGs 2030).Minmetals Capital Minmetals Capital Company Limited

Changsha Institute of Mining and Metallurgy Changsha Research Institute of Mining and Metallurgy Co. Ltd.Taiwan LICO Taiwan LICO Technology Corp.Data Sources and Reliability Assurance

Goldshine Energy Goldshine Energy Material Co.Ltd.All information and data cited in this report are derived primarily from internal documents of Minmetals New Energy or relevant public

materials. This report has been reviewed and approved by the Board of Directors. Minmetals New Energy assures that this report contains Changyuan New Energy Hunan Changyuan LICO New Energy Co.Ltd.no false records misleading statements or material omissions and assumes individual and joint liability for the authenticity accuracy and

MCC New Energy MCC Ramu New Energy Technology Co. Ltd.completeness of its content in accordance with the law.Contents

Message from the Chairman 01

Green Energy in Action

Painting a Shared Future

with Green

About Us 03

Company Profile 03 Smart Resource Empowerment 29

Breaking New Ground in Recycling

Corporate Culture 05

Fulfilling Ecological Responsibility - 39

Organizational Structure 06 Committed to Going Green

Pursuing "Dual Carbon" goals -

Business Overview 07 45Empowering the Future

Honors for 2025 08

Milestones 09

Review of the "14th Five-Year Plan" 11 Upholding Integrity and

Pooling Efforts for Development Forging Embracing Warmth to Build Driving Innovation and

Ahead to Open a New Chapter 11 a Win-Win Ecosystem with Straightening the Founda-

Responsibility tion for Shared Prosperity

Through Governance

Empowering Careers and Uniting 61 Party Building as the Guiding Force: 93

for Growth Uniting and Empowering

ESG Management 17 Sincerely Service Customers Value 69 Strengthening Enterprises by 117

Co-Creation Excellence in Governance Making 100 Future Outlook

Governance 17 Steadfast and safe Progress

Advancing Innovation for Research 74

Strategy 17 for Long-Term Impact Compliance as the Shield and 104

Upholding Integrity Appendix 119

Impact Risk and Opportunity Management 19 Intellectual Property Protection 80

Building Momentum for Progress Upholding Integrity and Trustwor-

Indicators and Targets 22 thiness Building Enterprises on 109 Key Performance Table 119Collaborative Synergy and Shared 81 Solid Foundations

Value Across the Chain

Stakeholder Engagement 23 Index Table 127Walking Together and Sharing

Public Welfare Warming Hearts 88 Development 113

Material Issues 25 Feedback Form 128Enriching SocietyMinmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Message from the Chairman

Message from the Chairman This year Minmetals New Energy fostered a people-oriented culture and conveyed warmth of responsibility.We firmly believe that a company's value lies not only in business growth but also in giving back to society and warming people's hearts. We

adhere to a people-oriented approach building diverse career development pathways stimulating internal talent motivation and organizing a

variety of cultural sports and care activities enabling employees to achieve growth and happiness alongside the company's development. We

strictly implement workplace safety responsibilities strengthen risk prevention and health management and build a comprehensive safety shield

for all employees. We are deeply engaged in rural revitalization using consumption support to broaden the market for agricultural products

creating employment opportunities to help increase local incomes and building bridges of support with genuine care. We actively participate in

public welfare initiatives and volunteer services conveying the warmth of a central state-owned enterprise through small acts of kindness. In

supply chain development we uphold compliance and green principles building a stable collaborative clean and efficient cooperation ecosys-

tem. For our products and services we adhere to the spirit of craftsmanship winning customer trust and market recognition through outstanding

quality.This year Minmetals New Energy strengthened governance effectiveness and consolidated its development foundation.We have always remained true to our commitment to the rule of law improving the modern corporate governance system integrating Party

leadership into all aspects and processes of governance ensuring that the strengths of Party building and governance effectiveness are aligned.We have optimized the operation mechanism of the "Three Meetings" improved a decision-making and oversight system with clearly defined

powers and responsibilities as well as effective checks and balances and ensured standardized and efficient corporate operations. We have built

a comprehensive compliance management and risk prevention and control system strengthened the integrity defense line and made compli-

ance operation a solid guarantee for development. Deepen ESG construction refine the three-tier management system integrate the concept of

sustainable development throughout win multiple industry authoritative honors gain high recognition from the capital market for many consec-

utive years and demonstrate corporate strength and responsibility through excellent governance.Minmetals New Energy Materials (Hunan) Co. Ltd.Secretary of the Party Committee and Chairman of the Board

Hu Liuquan

This year Minmetals New Energy focused on technological innovation and activated growth drivers.We have always adhered to self-reliance in science and technology to empower high-quality development. Guided by a gradient development

strategy of "one generation in production one generation in reserve and one generation in pre-research" we actively promote research-driven

enterprise development establishing research and technology development platforms and incentivizing scientific and technological innovation.As time turns a new chapter our original aspiration remains steadfast guiding us forward with determination. The year 2025 marks We are making forward-looking arrangements in cutting-edge fields such as high-nickel ultra-high-nickel and solid-state battery cathode materi-

the successful conclusion of the "14th Five-Year Plan" and the opening of a new chapter in the "15th Five-Year Plan" blueprint. For our als promoting the extension of the industrial chain toward higher value-added products and the transformation toward high-end low-carbon

corporate sustainability journey this is a year of deep cultivation continuous progress and scaling new heights. Minmetals New Energy products. As a core member of the SASAC "Central Enterprise Solid-State Battery Industry Innovation Consortium" we are leading the undertak-

has always taken its original mission as its guiding beacon green development as its foundational principle and innovation-driven ing of a solid-state battery-related project for the Ministry of Industry and Information Technology. Several key technological challenges have

strategies as its engine. By deeply cultivating the new energy materials sector the Company has forged ahead with determination and been successfully overcome and passed acceptance reviews with notable achievements in innovation platforms and talent team development.achieved fruitful results in advancing the "dual carbon" goals and empowering high-quality development. We have deepened industry-academia-research collaboration with universities promoting the efficient transformation of research outcomes

and providing solid support for the company's safe stable production and the industry's high-quality development through our technological

strength.This year Minmetals New Energy upheld green development and strengthened its low-carbon foundation. The journey is long yet the wind is strong; we raise our oars and set sail once more. Standing at the new starting point of the "15th Five-Year Plan"

facing the profound transformation of the new energy materials industry and the strategic opportunities of global green transition we are deeply

We have always regarded environmental protection as the lifeline of our corporate survival and growth continuously improving a clearly tiered aware of our heavy mission and responsibility. Going forward we will continue to make green development our defining characteristic commit-

and well-defined ecological governance system and deeply integrating green development concepts into all aspects of production and ting to ecological protection and low-carbon transition ensuring that corporate growth coexists harmoniously with nature. With responsibility as

operations. With a firm long-term emission reduction target we are steadily advancing the realization of the "dual carbon" goals vigorously our unwavering commitment we will deepen employee care and social contributions allowing the warmth of our company to reach more people.developing clean energy continuously optimizing our energy mix and making green electricity a key pillar of our production energy. We are With sound governance as our solid foundation we will continuously improve the modern corporate system ensuring steady development

deeply engaged in resource recycling perfecting the recycling industry chain to maximize the value of every resource. Through targeted pollution through excellent governance. With innovation-driven growth as our core engine we will dedicate efforts to core technology breakthroughs

prevention and control measures we strictly control wastewater exhaust gas and noise emissions safeguarding our natural environment with leading industry upgrades through technological strength. We firmly believe that with the unity dedication and collective efforts of all our

tangible actions. From continuously improving water resource recycling efficiency to presenting our power battery resource utilization practices colleagues and with the trust support and partnership from all sectors of society Minmetals New Energy will continue to write new chapters in

at international summits we are fulfilling our ecological responsibilities with concrete actions making green our most distinctive developmental the vast landscape of the new energy materials industry. We will contribute even greater momentum to promoting high-quality industry develop-

backdrop. ment and supporting the implementation of national strategies!

01 02Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report About Us

About Us

Company Profile

Minmetals New Energy Materials (Hunan) Co. Ltd. (abbreviated as "Minmetals New Energy" stock code:

688779) was founded in 2002. It is directly-affiliated enterprise of China Minmetals Corporation a Fortune

Global 500 company. It is also a member enterprise of the Corporate Electric Vehicle Alliance the chairman

unit of the Hunan Battery Industry Association and the chairman unit of the Chang-Zhu-Tan Advanced

Energy Storage Materials Industry Alliance. It was listed on the Science and Technology Innovation Board of

the Shanghai Stock Exchange in August 2021.As a core pillar of China Minmetals' innovation-driven development strategy and its effort to build "Future

New Power" Minmetals New Energy adheres to the action guidelines value orientation and corporate

spirit of "world-class mission and responsibility leading role in independent innovation problem-oriented

work thinking quality excellence and the fighting spirit to dare to succeed". With the strategic positioning

of becoming a "domestic first-class and internationally renowned supplier of new energy materials" the

Company focuses on its core business upholds integrity and innovation dares to take responsibility

strives for world-class excellence and is committed to strengthening expanding and growing the

enterprise sharing development outcomes with a broader range of stakeholders.In the future the Company will actively practice the new development philosophy of innovation coordina-

tion green openness and sharing strengthen its foundation enhance its advantages and join hands with

its many partners to forge ahead toward becoming a "global leader in the new energy materials industry."

It will continuously contribute to meeting the people's growing needs for a better life strive to support the

implementation of the national new energy vehicle strategy take responsibility for promoting high-quality

economic and social development and make new and greater contributions to achieving the Second

Centenary Goal!

innovation green sharing

coordination openness

03 04Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report About Us

Corporate Culture Organizational Structure

Core Cultural Concepts Shareholders' Meeting

Strategy Committee

Nomination Committee

world-class mission and responsibility and the fighting spirit to dare to succeed

Board of Directors

Action Guidelines

Remuneration and

Value Orientation

Appraisal Committee

Corporate Spirit

Audit Committee

leading role in independent innovation quality excellence

Management Level

problem-oriented work thinking Strategic

General

Planning

Management

Department

Department

(Board Office

(Party CPC Enterprise

Committee Organization Safety and Management

Office Department Discipline Environ-Department Finance

Strive to be first-class employees Party-Mass Inspection mental

To become a global leader in the new (Human Securities Department

create first-class products and build a Work Department Protection

Corporate energy materials industry Applied Cultural Resources Affairs first-class enterprise together Department Department

Vision Concepts Department) Department Party

Compliance

Committee

and Risk

Propaganda

Control

Department)

Department)

Sub-concepts of Corporate Culture

Party Building Concept Quality Concept Integrity Concept Talent Concept

Political guidance integrated Survival through quality market Virtue integrity and truthful- Provide opportunities for those

development people-oriented access through certification ness; dedication responsibility willing to work platforms for

joint construction and sharing success in details future in and effort those capable and incentives Quality Engineering Information Logistics MCC ChangyuResearch Business Golshine

quality for those who achieve results Assurance Technology Technology Affairs New an New Institute Center

Department Department Center Department Energy Energy Energy

Audit Center

Safety Concept Customer Concept Compliance Concept Innovation Concept

(Party

Committee

Safety is the greatest saving Observe the market attentively Compliance creates value Technological innovation drives

Inspection

and accidents are the greatest treat customers sincerely compliance is everyone's high-quality corporate develop-

Office)

waste responsibility ment

05 06Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report About Us

Business Overview Honors for 2025

Minmetals New Energy specializes in the research production and sales of high-efficiency battery materials. Its main products include multi-ele-

ment precursors multi-element cathode materials lithium iron phosphate lithium cobalt oxide and other lithium battery cathode materials as

well as nickel-metal hydride battery cathode materials. The Company possesses a complete product system for lithium battery multi-element

precursors lithium battery multi-element cathode materials and lithium iron phosphate cathode materials maintaining a leading market share

in the power ternary materials sector. The Company is headquartered in Changsha Hunan Province with three production bases: Gaoxin Lugu

and Tongguan. In April 2025 following a decision by China Minmetals the management relationship of MCC Ramu New Energy Technology Co.Ltd. was transferred as a complete entity to the Company. Currently the Company has an annual production capacity of 120000 tons of ternary

cathode materials 60000 tons of lithium iron phosphate materials 30000 tons of precursors and 5000 tons of spent battery recycling and

utilization.with three production bases: Gaoxin Lugu and Tongguan 2025 SSE Eagle Golden Quality ESG Award Dalian Taixing 2025 Annual Quality

Excellence Award

120000 tons of ternary cathode materials 60000 tons of lithium iron phosphate materials

30000 tons of precursors 5000 tons of spent battery recycling and utilization

Be Committed to Quality EVE Energy 2026 Supply Chain Partners China Minmetals Central China Region First Staff

Leveraging China Minmetals' long-term resource security advantages and full Conference Outstanding Quality Award Sports Games Outstanding Organization Award

industry chain advantages in nickel cobalt manganese lithium and other

resources the Company adheres to quality gathers talent and focuses on R&D. It

has developed strong research capabilities and mastered advanced technologies

in precursor synthesis cathode material preparation and spent battery recycling.The Company has been recognized as a National Intellectual Property Advantage

Enterprise a National High-Tech Enterprise a National-level Specialized Sophisti-

cated Distinctive and Innovative "Little Giant" Enterprise and a National "Green

Factory." It holds 202 valid patents and has a National Enterprise Technology

Center and a Postdoctoral Research Workstation. The Company's products

represent the development direction of high-performance lithium-ion battery

cathode materials. Its single-crystal ternary and high-nickel materials are

renowned in the industry with product technology reaching internationally

advanced levels. The Company has obtained ISO 9001 Quality Management Focus on R&D Attract Talents

System certification ISO 14001 Environmental Management System certification

ISO 45001 Occupational Health and Safety Management System certification ISO

50001 Energy Management System certification ISO 27001 Information Security

Management System certification IATF 16949 Automotive Quality Management

System certification and Intellectual Property Management System certification. 202 valid patents

07 08Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report About Us

Milestones

Renamed to Minmetals New Energy Materials

2024 (Hunan) Co. Ltd.

Changyuan Lico Goldshine Energy and Changsha

2017 Institute of Mining and Metallurgy's 7000-ton

project assets were restructured to form the new

Changyuan Lico.Changsha Institute of Mining and Completed shareholding reform and renamed

2002 Metallurgy and Taiwan LICO established 2019 to Hunan Changyuan Lico Co. Ltd.

a joint venture company primarily

producing lithium cobalt oxide. Implemented key employee shareholding with

126 employees investing RMB 183 million

to hold 1.07% of the Company's shares

Became a wholly-owned subsidiary

2014 of listed company Minmetals Capital

(formerly Kingray Technology)

Became a directly-affiliated enterprise of Successfully listed on the SSE STAR Market

2018 China Minmetals 2021 (stock code: 688779)

Successfully introduced RMB 1.7 billion in

equity capital from 11 strategic investors

including China Reform Holdings SAIC and

BAIC

09 10Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Review of the "14th Five-Year Plan"

Pooling Efforts for

Review of the During the start of the "14th Five-Year Plan" period the country has adopted a forward-looking vision with the release of the New Energy Vehicle Development Forg- Industry Development Plan (2021-2035) which sounded the clarion call for the large-scale development of the new energy vehicle industry. Seizing

this historic opportunity Minmetals New Energy embarked on a five-year campaign of high-quality development. Over the past five years guided

"14th Five-Year Plan" ing Ahead to Open a by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Company has earnestly implemented the work arrangements New Chapter of the Party Leadership Group of China Minmetals. It has unleashed vigorous vitality through deepening reform broken through technical

barriers via scientific and technological innovation and demonstrated the responsibility of a state-owned enterprise in strategic planning.Party Building Leads Forging the Soul and Gathering Strength to Solidify the Foundation

The Company adheres to political construction as the guiding

principle deeply cultivating the fertile ground of theoretical

education. It organizes party members and cadres to thoroughly

study and deeply understand the core essence and practical require-

ments of Xi Jinping Thought on Socialism with Chinese Characteristics

Looking back at the "14th Five-Year Plan" period the Company has advanced steadily amid market changes and development. In for a New Era and the spirit of the 20th National Congress of the

August 2021 it successfully went public on the Shanghai Stock Exchange's STAR Market raising RMB 2.725 billion through a public Communist Party of China transforming learning outcomes into a

offering. The following year it issued convertible corporate bonds raising RMB 3.25 billion injecting new momentum for its powerful driving force for promoting high-quality development. The

sustained development after listing. These two critical rounds of financing effectively guaranteed the construction funding for Phase Company earnestly carries out education on Party history thematic

I and Phase II of the High-Tech Base and the lithium iron phosphate project. The Company's production capacity expanded rapidly education on studying and implementing Xi Jinping Thought on

80000 60000 Socialism with Chinese Characteristics for a New Era education on with the -ton cathode material expansion project and the -ton lithium iron phosphate project completed and put

Party discipline and in-depth studies to implement the spirit of the

into operation smoothly. The Company attaches great importance to scientific and technological R&D yielding fruitful innovation

Party's eight-point frugality code. These efforts guide party members

achievements. It has been recognized as a National Enterprise Technology Center. The research institute's hardware equipment and cadres to profoundly grasp the decisive significance of the "Two

boasts a full-process battery material characterization capability covering material microstructure characterization - physical and Establishments" continuously enhancing the "Four Consciousness-

chemical performance testing - actual electrical performance testing reaching the industry's first-class level. Key operating indicators es" strengthening the "Four-sphere Confidence" and achieving the

have repeatedly set records with a significant leap in operational quality and efficiency:By the end of Q3 2025 the Company achieved "Two Upholds" consciously aligning their thoughts and actions with Party Committee Election of Minmetals New Energy

a cumulative operating income of RMB 46.138 billion and generated profits of RMB 1.831 billion representing increases of the decisions and deployments of the Party Central Committee.

365.24% and 134.74% respectively compared to the 13th Five-Year Plan period. Its total assets reached RMB 14.121 billion

an increase of 202.31% from the end of 2020. The company's development has achieved quality improvement and accelerated Rooted in the "Three Fundamentals" (fundamental organizations fundamental teams and fundamental systems) the Company strengthens the

political and organizational functions of grassroots Party organizations. Following the trajectory of the "Year of Consolidation and Deepening"

growth."Year of Innovation and Expansion" "Year of Comprehensive Standardization" and "Year of Refinement and Expansion" for Party building it

continuously solidifies the foundation of grassroots work. Guided by the "Party Flag Flying Party Badge Shining" initiative the Company extensive-

ly carries out activities such as the "Four Batches" "Model Party Branches" and "Party Building +" project initiatives guiding all Party members to

fully play their vanguard and exemplary roles in key areas such as technological innovation cost reduction and efficiency enhancement market

development and risk prevention and control ensuring that Party members and employees take on primary responsibilities focus on core tasks

and play leading roles on the main front of production and operations. The Company deepens the "two-way cultivation" mechanism of cultivating

Party members into business leaders and cultivating leaders into Party members forming a virtuous cycle of "Party building promoting business

business strengthening Party building". The number of Party members in the Company has grown from 137 at the end of 2020 to 305

injecting a steady stream of vitality into the Company's high-quality development.??????

The Company unswervingly promotes comprehensive and strict governance of the Party to deeper levels fostering a clean political ecosystem

through strict standards strict measures and a strict atmosphere. The Party Committee of the Company has thoroughly implemented General

Secretary Xi Jinping's important thoughts on Party building and the Party's self-reform advancing the integrated fight against corruption by

ensuring officials do not have the desire opportunity or audacity to engage in corruption. It has consistently strengthened the ideological

defense of Party members and officials against corruption through integrity education and warning education. Focusing on key areas and critical

links such as major engineering projects and bidding the committee has carried out special campaigns to address prominent issues rigorously

investigated and dealt with violations of laws and discipline to create a strong deterrent effect and effectively implemented the "second half of

Minmetals New Energy's STAR Market Listing Ceremony the article" (i.e. follow-up rectification and governance work) by using cases to promote governance and reform. This approach promoted the

integration of punishment rectification and governance and the coordination of supervision case handling and warning.

11 12Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Review of the "14th Five-Year Plan"

Breakthrough through Reform Restructuring Systems to Unleash Efficiency Empowering through Innovation Driving with Technology as the Core Engine

The Company adheres to the fundamental principle of the "Two Adherences" (upholding the Party's leadership over state-owned enterprises and Rooted in the national development strategy the Company has built a strong research capability with quality as its foundation talent as its key

establishing a modern enterprise system) advancing high-quality mixed-ownership reform. It has successively implemented the three-year and R&D as its core. During the "14th Five-Year Plan" period the Company was recognized as a National Enterprise Technology Center a National

action plan for SOE reform and the deepening and upgrading action steadily moving toward the modernization of its governance system and High-Tech Enterprise and a National-level Specialized Sophisticated Distinctive and Innovative "Little Giant" Enterprise. It is also a National

governance capability. The Company systematically reviewed and improved the "Three Lists and One Process" (list of powers list of responsibili- Intellectual Property Advantage Enterprise and a Whitelist Battery Recycling Enterprises. The Company holds provincial and municipal innovation

ties list of prohibited items and flow chart) refined the leadership mechanism of "two-way entry cross-appointment" and achieved the "one platform qualifications including the Hunan Provincial Engineering Research Center the Provincial New Materials Pilot Base the Changsha

person holding both positions" of Chairman and Party Secretary. It standardized the construction of the Board of Directors issuing policies such Municipal Technological Innovation Center the Municipal New Type R&D Institution for Enterprises and the Municipal Capacity Expansion and

as the Implementation Plan for Implementing the Board's Authority and the Measures for Authorizing the Board of Directors to ensure scientific and Upgrading R&D Center.efficient decision-making. The Company promoted the incorporation of Party building into the articles of association across the entire system

strengthened the Party committee's pre-study review and gatekeeping role and deeply embedded Party organizations into the corporate

governance structure. It also deeply implemented the reform of tenure system and contractual management for the management team closely

linking appointments and compensation with business performance resulting in a significant improvement in governance effectiveness.Closely following the Party's organizational line in the new era the Company

focuses on building a high-caliber cadre force and establishing a well-connect-

ed highly effective organizational system. In response to industry development

and high-quality demands the Company has implemented a talent-strengthen-

ing strategy and a talent chain completion strategy deepened the reform of

the three systems (employment labor and distribution) and improved the

full-chain mechanism of "recruiting utilizing developing and retaining" talent

expanding the talent "pool". Over the past five years the total number of

employees has nearly doubled from approximately 1100 to over 2300.The talent structure has been continuously optimized with the number of

employees holding bachelor's master's and doctoral degrees increasing by

123% 196% and 129% respectively compared to the end of the "13th

Five-Year Plan" period. The Company dynamically adjusts its reserve cadre pool

and intensifies development efforts with cadres under the age of 45 managed

by the Party committee accounting for 75%. Firmly committed to "building a Minmetals New Energy "Lico New Star" Training Camp

nest to attract phoenixes" the Company has strengthened the recruitment and

development of research personnel forming a high-quality professional and

tiered research talent team composed of individuals recognized under Hunan Minmetals New Energy Research Institute

Province's Furong Scholar Program Leading Talents Provincial Outstanding

Engineers Provincial "Xiaohe" Talent Changsha Tier C and D Talents and The Company persists in deep cultivation of traditional advantageous fields tackling mainstream market segments and exploring future trends

Municipal Outstanding Young Scientific and Technological Talents. continuously enhancing its technology reserve for enterprise development. It has refined its precursor product structure and achieved mass

production of several new products including ultra-high nickel high-voltage and high-power variants. Targeting applications such as high voltage

The Company further optimizes its operational efficiency and effectiveness and high power several medium-nickel single-crystal cathode materials have become "bestsellers" in the market due to their high energy density

enhancing its internal vitality market competitiveness and development low watt-hour cost and wide applicability. The newly developed gradient doping modification technology and advanced sintering process

leadership. It has strengthened the positioning of functional departments and technology have reached internationally leading levels. Several products in the 8-series high-nickel and 9-series ultra-high-nickel categories have

business centers striving to build a management and control mechanism been mass-produced and shipped laying the foundation for expansion into higher-end market applications. Focusing on an integrated layout

characterized by a "small headquarters large platforms and large industries". spanning resources precursors cathode materials and recycling in 2023 the Company achieved the first-ever breakthroughs in both production

The Company has increased the integration of internal business resources to line commissioning and mass production of its first high-compaction second-generation semi-product making it the first ternary material

improve operational efficiency. It has accelerated the pace of digital transforma- enterprise in the industry to independently achieve mass production of lithium iron phosphate. A product series layout has been established

tion launching a "digital enterprise brain" to significantly improve the integration including precursors power second-generation third-generation and fourth-generation tiered products high-compaction energy storage

rate of business and finance. The Company introduced ESG management products high-rate products and high-voltage lithium manganese iron phosphate products creating a diverse product matrix for dynamic and

concepts and developed a unique "sustainability-driven dual-driven quality storage scenarios. Cobalt lithium high-rate and high-voltage products have achieved phased breakthroughs with second-generation products

management model" jumping to an AA rating in the Wind ESG rating system. It being introduced to high-end customers third-generation wide-temperature-range products completing design finalization and 4.53-4.55V

has obtained eight major management system certifications including ISO 9001 high-end product technology reaching the forefront of the industry. In battery recycling a key full-component resource utilization technology

IATF 16949 (automotive industry) ISO 14001 and ISO 45001 building a manage- system has been established featuring "automated disassembly of power battery packs + live cell crushing + prioritized lithium extraction from

ment and control system covering all business processes. The Company was also Minmetals New Energy wins the "Third Changsha black powder + deep purification of nickel cobalt and manganese + anode material resource utilization" addressing core industry challenges

honored with the "Third Changsha Mayor's Quality Award". Mayor's Quality Award" such as safety economic viability and environmental protection.

13 14Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Review of the "14th Five-Year Plan"

The Company holds 179 valid patents including 105 new invention patents granted in the past five years. It has newly filed 5 PCT patents and

received the "Hunan Provincial Patent Award Second Prize". The Company actively participates in the development of national and industry

standards leveraging standards to drive the development of the battery materials industry. During the "14th Five-Year Plan" period it led or

participated in the development of 81 technical standards and received 12 "Excellent Technical Standard Award" from the National Non-ferrous

Metals Standardization Technical Committee. The Company has led or participated in 11 projects including the national key R&D program of

China major special projects of the Ministry of Industry and Information Technology key R&D projects of Hunan Province and science and

technology innovation leading projects of Hunan Province. The Company was successfully selected as a member of the SASAC "Central Enterprise

Solid-State Battery Industry Innovation Consortium". Its groundbreaking work on "high-throughput solid-state battery cathodes" was selected as

one of the "Top 10 Scientific Issues" by SASAC.Minmetals New Energy's Three Industrial Bases

The Company adheres to the philosophy of "customer first business oriented" deeply cultivating the domestic market while expanding its

Minmetals New Energy Ternary Cathode Material Production Workshop

international footprint. Its domestic market share in ternary materials continues to lead. Core customers include leading power battery enterpris-

es such as CATL Sunwoda and EVE Energy. The Company's production and sales scale remain in the first tier of the industry with continuously

growing brand influence and reputation. Among its products the 6-series medium-nickel high-voltage products are supplied to top domestic

battery manufacturers and used in mainstream vehicle models with shipments ranking among the top three in the industry. In the international

Strategic Layout: Complementing and Strengthening the Industrial Chain to Expand New Frontiers market the Company has long supplied renowned companies such as Panasonic Energy Murata (Japan) and SAFT (France) and has successfully

become part of the supply chain of global automotive giants like BMW and Toyota. Several of its products have become core or sole suppliers to

these customers.The Company has reinforced its foundational capabilities driving the aggregation and synergistic development of resource elements. It has Looking to long-term development the Company has increased strategic investments in resource development and overseas projects. It has

established three major industrial bases - Lugu Tongguan and Gaoxin - and built a new 80000-ton cathode material project providing a participated in Jinchuan Nickel & Cobalt's capital increase and strategic investor introduction project and established a joint venture with Toyota

solid foundation for scaling its ternary business. This has enabled a diverse product portfolio covering ternary cathode materials lithium Meiwa and Changsha Institute of Mining and Metallurgy to engage in spent battery recycling building a diversified cooperation ecosystem. The

cobalt oxide and others allowing the Company to promptly respond to customer needs across different application scenarios. Keeping pace Company is also advancing the Axens project in France leading feasibility studies for overseas capacity construction and steadily exploring new

with market developments the Company completed a 60000-ton lithium iron phosphate (LFP) project formally entering the LFP track and pathways for capacity expansion abroad.further expanding its cathode material business scope. With the entrusted management of MCC New Energy the Company has also positioned

Through trials and hardships we have forged brilliance and with determined efforts we embark on a new journey. As the "14th Five-Year Plan"

itself in the spent battery recycling capacity making its industrial chain more complete. As the "chain leader" of China Minmetals' new energy

concludes with splendid achievements and the "15th Five-Year Plan" embarks on a new journey Minmetals New Energy will with even firmer

materials industrial chain the Company leverages the strategy of "strengthening the leading role complementing the chain and gathering

conviction and higher morale stand at the forefront of the industry pursue its dreams on the global stage and accelerate its transformation into

clusters" to advance strategic frontier projects such as "development of high-energy-density lithium-rich manganese-based materials" and

a global leader in the new energy materials industry contributing significantly to China's path to modernization."development of key materials for solid-state batteries" while planning integrated lithium iron phosphate projects continuously strengthen-

ing the industrial chain's capabilities.

15 16Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report ESG Management

ESG Management

Minmetals New Energy anchors its development direction towards high-quality growth adheres to its original development aspirations clarifies

its strategic positioning refines its business layout deepens market expansion strengthens risk prevention and control and fosters innova-

tion-driven development. By implementing standardized management practices it actively embodies the concept of sustainable development Deepen technology R&D and take a Strengthen extend and complement the industrial

has garnered multiple honors in the ESG field and demonstrates the Company's sense of responsibility and commitment to high-quality develop- leading position in key areas. chain to achieve integrated industrial development.ment.Solidify current product R&D continuously strengthen Actively fulfill the role of "chain leader" by strengthening

basic research and deeply expand cutting-edge R&D extending and complementing the industrial chain to

particularly focusing on key areas such as solid-state promote integrated development. Deeply integrate

Governance battery cathodes lithium-rich manganese-based materi- internal resources and material advantages of China als and sodium-ion batteries laying the foundation for Minmetals and collaborate with external ecosystem

expanding applications in emerging fields. partners to jointly build a safe efficient and synergistic

new energy materials industrial chain.The Company has established a three-tier ESG management system consisting of "Board decision-making - Strategy Committee management -

ESG Working Group execution" achieving a well-defined efficient and collaborative organizational structure that provides solid organizational

guarantees for ESG work. 01 02

Decision-making level Management level Executive level

Board of directors Board of directors ESG Working Group

strategy committee

Identify and assess the Company's Implement the board's resolutions Coordinate and advance the

ESG risks formulate ESG-related and policies regarding ESG work implementation of ESG-related work

policies guidelines systems and review the Company's ESG risks overseeing the regular collection 03 04

objectives deliberate and make execute and advance specific ESG reporting and reviewing of ESG

decisions on relevant ESG matters matters and regularly report information improving the efficiency

and oversee and evaluate the progress on ESG-related matters of statistical control over ESG

implementation of the Company's to the board. information and the effectiveness of

ESG-related practices. ESG efforts and ensuring the efficient

execution and implementation of

ESG initiatives.Stabilize the core business and Enhance employee capabilities and

explore new growth drivers. invigorate the workforce.Strategy Based on existing stable customer relationships continue Improve the mechanisms for selecting cultivating to expand cooperation with leading battery manufactur- utilizing and retaining talent continuously revitalize

ers accelerate entry into international markets and existing talent and expand the talent pool providing

broaden business scope in emerging application areas to strong support for high-quality development during the

create new growth drivers. "15th Five-Year Plan" period.The Company adheres to the basic principles of "steadfastly strengthening the main business of lithium-ion battery cathode material industry

steadfastly adhering to the policy of diversified industrial allocation and steadfastly pursuing the direction of global development." With the

strategic positioning of becoming a "domestic first-class and internationally renowned supplier of new energy materials" the Company is

market-oriented. Based on precise market analysis it rationally allocates resources defines future development paths and formulates its

development strategy by integrating internal and external environments and its own advantages.

17 18Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report ESG Management

Impact Risk and Opportunity Management Major Risk Management

Based on the Company's strategic objectives 10 major risks were comprehensively assessed. A risk management responsibility list was

Based on its actual operations and business characteristics and in accordance with the ISO 31000 risk management framework standard the established and full-cycle risk assessment and tiered management were implemented.Company has established a systematic standardized and proactive comprehensive risk management system. Through systematic identification

assessment and the formulation of response measures the Company enhances its risk response capabilities and management level effectively Control mechanisms: annual assessment quarterly analysis monthly tracking and real-time monitoring.preventing controlling and mitigating various risks to ensure stable operations.refined zone-based early warning and tiered management with targeted measures to drive risk

Risk Management Structure: Three Defense Lines Control measures: prevention and control.Each department

As the primary responsible party for risk management each department implements risk

First defense Risk Trends During the Reporting Period:management activities within its scope of duties including risk information collection

line identification assessment and monitoring system improvement implementation of

response measures establishment of emergency mechanisms and risk management 4 risks showed a downward trend 1 risk increased due to market factors 5 risk items remain stable unchanged from

training. the previous period

Compliance and risk control department In 2025 the Company experienced no major or above production safety incidents no external litigation and no regulatory penalties

with the overall risk situation remaining stable.As the centralized management department for risk management functions it

Second defense coordinates risk management activities across all departments including organizing

line annual risk assessments maintaining risk category lists tracking control status oversee-

ing responses to major risks and supervising and inspecting the implementation of risk

management by relevant departments.Board audit committee internal audit department Risk Culture and Responsibility-Driven Approach

Third defense Through internal control audits special audits and routine supervision and inspection

line it monitors and evaluates risk management work urges problem rectification and

ensures the effective operation of the risk management system. The Company continuously fosters a company-wide risk prevention and control culture strengthening risk awareness and responsibility

implementation through diverse channels.Risk identification Key Achievements in 2025 Training and publicity Responsibility mechanisms Business model

and assessment Enhance risk awareness and Establish and improve a safety and Implement the "Amoeba"

Conducted comprehensive full-chain risk assessments across all levels capabilities through routine environmental protection guarantee management model promote

identifying 31 key risks. training typical case studies responsibility mechanism and for leverag- cost-conscious operations and

The compliance and risk control department

leads all departments and subsidiaries in Established a risk prevention and control framework centered on " 4

and a series of initiatives ing to reduce risk a responsibility-based profit-based assessment and

such as "Work Safety Month" mechanism that integrates designated strictly enforce rewards and

systematically identifying the risk categories mechanisms and 10 tools". "Fire Safety Awareness accountability targeted supervision and penalties.faced by the Company based on its operational Month" "Quality Month" cross-departmental coordination for

management and business activities compiling Developed "one risk one strategy" response plans formulating a total of and "Learn the Law at Three de-leveraging and risk mitigation comple-

and regularly updating the risk list to ensure 356 prevention and control measures. Meetings". mented by a refined performance apprais-

dynamic adaptation to business development al system to hold all units accountable for

and changes in the internal and external Quantified 38 risk monitoring indicators enabling dynamic tracking. risk management.environment.

19 20Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report ESG Management

Case Collaborative Risk Prevention and Control Mechanism

In 2025 the Company deepened its "integrated risk control" collaborative supervision system focusing on key areas to conduct joint Issue Anticipated Risks or Opportunities Response Measures

risk inspections identify and resolve prominent issues and prevent risks and hidden dangers in key areas:

Conducted collaborative supervision and inspections covering six major Supply disruptions inventory risks etc. Strengthen supply chain management;

Joint inspections in aspects: accounting information quality fund payments performance-related may affect supply chain stability and practice responsible procurement;

key areas entitlements credit management R&D expenditure hedging and trade thus product delivery. diversify supply chain structure; use

business management; Supply chain information platforms for traceability management management.Collaborative prevention and Regularly held risk prevention and control meetings carried out special Risks of technological change and talent Increase investment in technology R&D

control of risk of "accounts advance payment risk screenings conducted item-by-item reviews of 30 shortage/loss may cause the Company and collaboration; optimize R&D fund

receivable inventory and advance payments and formulated 5 optimization measures for advance to lose competitiveness in the industry. management; enhance talent attraction

contract assets" payment risk prevention; and development; enrich technology

Innovation-driven reserves.Conducted quarterly joint special remediation actions for overdue receivables

Special remediation for

cumulatively identifying overdue risks and issuing 107 collection recommen-

overdue receivables

dations effectively reducing the proportion of overdue receivables;

See the Climate Change Response section for details.Climate change

response

Established a compliance review mechanism for major decisions involving

Compliance review of "preliminary review by business departments - legal compliance review - final

major decisions review by General Counsel" cumulatively reviewing 47 major issues effective-

ly preventing decision-making compliance risks.Indicators

and Targets

Minmetals New Energy has deeply

cultivated its ESG system construction

establishing a market benchmark for

responsibility through standardized

Issue Anticipated Risks or Opportunities Response Measures information disclosure and solid

sustainable development practices

2025 Best ESG Listed Companies

earning a Wind ESG AA rating. By virtue Wind ESG "AA" rating

on the STAR Market

of its outstanding ESG management

Product quality risks and inadequate Continuously optimize the quality performance the Company has won

after-sales handling may lead to inspection and control system promote awards such as Cailian Press's "2025

customer churn. quality informatization development Best ESG Listed Companies on the STAR

Products and advocate a quality culture and enhance Market" China Securities Journal's

services product after-sales services. "Third Guoxin Cup ESG Golden Bull

Award Top 100" and Value Online"2025

Listed Company ESG Value Communica-

tion Award". These multiple authorita-

Technical and management risks may Deploy data leakage prevention tive honors attest to the Company's

lead to customer privacy breaches systems; regularly update systems; core strength in the ESG field and

resulting in customer loss and unneces- enhance employee data security highlight its responsibility and commit-

Data security and sary litigation. awareness; conduct attack-defense ment to high-quality development.customer privacy

protection drills and emergency response.Third Guoxin Cup "ESG Golden 2025 ESG Value Communication Awards for

Bull Award Top 100" Listed Companies

21 22Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report ESG Management

Stakeholder Engagement

Minmetals New Energy has always adhered to the concept of responsible development deeply cultivated social responsibility practices and attached great importance to the expectations and demands of various stakeholders. To this end the Company has formulated a Stakeholder Policy and established a topic management list to

systematically identify assess and track the needs of government regulators shareholders and investors supply chain partners customers employees and community members. On this basis the Company has established a two-way communication mechanism that empowers both sides precisely listening to the demands of all

parties incorporating professional suggestions promoting targeted and continuous improvement of ESG management and achieving alignment between corporate development and the expectations of multiple stakeholders.Stakeholders

Government and Shareholders and Community and

Customers Suppliers and partners Employees Environment

regulatory authorities investors public

Compliance in operation Improvement of Technological innovation Supply chain management Protection of basic rights Green and low-carbon Participation in rural

corporate governance and interests development revitalization

Integrity construction Protection of customers' Fair competition

Protection of shareholder rights and interests Personal development Ecological environment Supporting education

Intellectual property Integrity and mutual

rights protection initiatives

protection Product quality and safety benefit Employee benefits

Investor relations

Employee care

Stakeholder management

Expectations Information disclosure

Risk management

Improvement of the Enhancement of R&D management system Improvement of the Establishment of fair Green transformation and Pairing-up and joint

compliance system operation and manage- procurement system promotion channels development development

Customer satisfaction

ment capabilities

Strengthening of surveys and complaint Honest performance of Professional training and Green technological Consumption assistance

anti-corruption education Investor surveys and channels contracts career development innovation

Donations for student aid

and training communications

Strict governance and Signing of cooperation Employee satisfaction

Intellectual property Publication of regular management agreements survey

Communication

protection system reports interim

and Response Information security Implementation of work

announcements and

protection safety

performance briefings

Daily communication

Comprehensive risk

management and control

23 24Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report ESG Management

Material Issues Validated by the Company's board of directors and external experts the following topics are identified as material topics and serve as the focus of the Company's management and report disclosure. Products and services and supply chain management are identified as topics of double materiality.To better respond to the diverse expectations and demands of stakeholders Minmetals New Energy based on the two dimensions of "financial Anti-commercial bribery and

materiality" and "impact materiality" comprehensively considers the potential impact of each topic on business strategy implementation and anti-corruption

financial performance. Taking into account industry development trends policy and regulatory updates and the core concerns of stakeholders Stakeholder Engagement Compliance and risk

the Company systematically identifies key ESG topics and conducts materiality analysis through a four-step process: "conduct background Employee rights and care Products and servicesmanagement

research - establish a topic list - assess and confirm materiality - review and confirm topics". Employee Recruitment

and Employment Work safety

In 2025 based on research into standards such as GRI and SASB as well as topics emphasized by major rating agencies the Company established Protection of

an ESG topic library aligned with its own business characteristics. We have identified key topics for the current stage and will use them as entry shareholder rights Anti-unfair competition

points and core drivers for ESG management. Going forward the Company will further deepen stakeholder communication and continuously Employee training and Intellectual property protection

optimize the materiality assessment process. development

Corporate

Pollutant

governance Supply chain management

Waste and pollutant emissions Discharge

Energy utilization

ESG governance

Social contribution

Environmental compliance Innovation-driven

Circular economy management

Conducting background research Ecosystem and biodiversity conservation Data security and customer

Climate change response privacy protection

Clarify the Company's business scope operational areas and stakeholder groups. Identify potential

issues by collecting and analyzing policies and regulations industry information peer practices and Due Diligence

Water resource

key concerns in the capital market.utilization Rural Revitalization

Establishing a issue list

Relatively important Financial materiality Very important

Through communication with stakeholders including government and regulatory authorities

shareholders and investors customers suppliers and partners fully understand the opinions of Materiality Matrix

internal and external stakeholders on the Company's material topics identify impacts risks and

opportunities and compile a topic list.Governance issues Social issues Environment issues

Anti-commercial bribery Data security and customer Environmental compliance

Assessment and determination of materiality

and anti-corruption privacy protection management

Conduct assessments of financial materiality and impact materiality and integrate national policies Protection of shareholder Supply chain management Waste and pollutant emissions

capital market concerns and peer performance to generate an analysis of material ESG topics. rights Products and services Ecosystem and biodiversity

Anti-unfair competition conservation

Intellectual property protection

ESG governance Circular economy

Employee rights and care

Party building leadership Clean energy opportunities

Employee training and develop-

Issue review and confirmation Corporate governance ment Water resource utilization

Compliance and risk Social contribution Energy utilization

The Company's management reviews and confirms the results of the material topic analysis and management Work safety Climate change response

clarifies the key objectives and implementation plans for future ESG management.Innovation-driven

2526

Very important Impact materiality Relatively importantGreen Energy in Action

Painting a Shared

Future with Green

Minmetals New Energy deeply embraces the philosophy of ecological civilization with green and low-carbon as the

backdrop for its development. It integrates ecological protection and resource-efficient utilization into all

dimensions of its production and operations. Through systematic governance concrete actions and consistent

practice the Company paints a picture of harmonious coexistence between ecology and development fulfilling its

role as a central state-owned enterprise to solidify the foundation for green development and empower the

low-carbon transformation of the industry.Response to the United Nations Sustainable Development Goals (SDGs)

27 28Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Smart Resource Empowerment The Company strictly complies with the Energy Conservation Law of the People's Republic of China the Energy Law of the People's Republic of China and other laws and regulations. Based on its operational

Breaking New Ground in Recycling realities it has formulated internal management policies such as the Measures for the Management of the Energy Conservation and Ecological

Environmental Protection Responsibility System the Measures for Energy

Conservation and Ecological Environmental Protection Management and

Adhering to ecological priority and green development Minmetals New Energy integrates energy conservation carbon reduction water conser- the Measures for Energy Conservation and Ecological Environmental

vation efficiency improvement and resource recycling into its entire production and operation process. It continuously improves its manage- Protection Statistical Monitoring Management. It has established an

ment system strengthens policy implementation advances technological innovation enhances resource utilization efficiency and reduces "Ecological Environmental Protection and Carbon Peak & Carbon As of the end of 2025 two subsidiaries

environmental load injecting powerful green momentum into its high-quality development. Neutrality Leading Group" to coordinate the Company's energy had obtained ISO 50001:2018 energy

conservation and carbon reduction efforts. Each subsidiary has

management system certification.simultaneously established its own energy management system

developed supporting policies such as Energy Management Measures

and Energy Conservation Management Measures tailored to its business

Energy Structure Optimization and Efficient characteristics set up specialized energy management departments and built dedicated energy statistics and management teams. These

teams strictly follow energy and carbon emission statistical scopes

Utilization and calculation methods to compile relevant monitoring data for

energy conservation and emission reduction conduct regular

monitoring and evaluation and implement assessments.The Company regards the efficient and clean use of energy as a core lever for promoting high-quality development. It strictly complies with

energy-related laws regulations and policy requirements improves its energy conservation management system and coordinates the continu- In line with the overall requirements for green and low-carbon development the Company strictly implements national laws regulations and

ous optimization of various energy-saving and carbon-reduction initiatives. It scientifically sets long- and short-term emission reduction targets industrial policies. Based on its actual development industry characteristics and strategic planning it scientifically sets energy management and

and steadily advances the low-carbon transformation of its energy mix and the enhancement of energy utilization efficiency. conservation goals ensuring that these goals are clearly defined trackable and achievable.The Company focuses on efficient energy utilization and energy conservation. Through various initiatives such as energy-saving publicity

equipment procurement and energy recovery it promotes energy-saving concepts drives clean production continuously taps into energy-sav-

The Company's energy use covers core activities such as office operations and production. The main types of energy involved include ing potential effectively reduces energy consumption and comprehensively enables the Company's green and low-carbon high-quality develop-

electricity steam natural gas and solar energy. The Company primarily obtains energy through market-based procurement mainly ment.purchasing electricity natural gas and steam while also making reasonable use of clean energy such as solar power. This creates a

diversified low-carbon energy supply mix that balances energy supply stability with environmental protection.In 2025

Total energy consumption Direct energy consumption Indirect energy consumption

Electricity 111224.67 tce 13200.71 tce 98023.96 tce

Market-Based Procurement

Steam es

y T

yp

Energy-saving publicity

Natural Gas gy Acq Muisition

Solar Energy Utilization

Leveraging opportunities such as "Energy Conservation Publicity Week" and "National Low-Carbon Day" the Company

promotes energy-saving and low-carbon concepts and knowledge around the event themes through posters brochures and

Solar Energy videos played on cafeteria electronic screens. It advocates for a simple moderate green and low-carbon lifestyle and produc-

tion method enhancing the low-carbon awareness of all employees. During the publicity week the Company displayed 8

banners 14 posters played videos 20 times and distributed over 90 pieces of promotional materials.

2930

imary EPr

nerg

ethods

ne

r

Main EMinmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Procurement of energy-efficient production equipment Green buildings

The Company continuously strengthens the procurement management of key energy-using equipment. For newly purchased New projects of the Company are designed and implemented in strict accordance with relevant technical standards and

energy-consuming equipment in new renovation and expansion projects it requires that the energy efficiency level of the specifications for building energy efficiency. For example photovoltaic panels are installed on roofs thermal insulation decora-

equipment specified in bidding documents and contracts must reach Level 2 or above. tive panels are used for exterior walls and thermally broken aluminum profiles are used for exterior windows. Its subsidiary

Changyuan New Energy has implemented sunken green spaces landscape water features and other green spaces with water

storage functions. Water-saving irrigation methods such as micro-sprinklers are used for green areas and lighting in public

spaces is controlled by zone and infrared sensors practicing the concept of green development.Addition of energy-efficient temperature control equipment

The Company has added automatic control valves for chilled water to its lithium iron phosphate grinding equipment to prevent Green transportation

refrigeration equipment from running idle and wasting energy.The Company optimizes logistics processes throughout the entire supply chain and uses electric vehicles to reduce the

Utilization of waste heat pressure and energy cascade utilization environmental impact during warehousing and transportation. In warehouse management based on product characteristics

it optimizes storage and picking models rationally plans warehouse layouts and minimizes the distance of goods movement.For transportation equipment it replaces traditional diesel forklifts with electric forklifts significantly reducing exhaust

emissions and noise pollution while lowering energy consumption and operating costs.The Company continues to promote industrial waste heat recovery. Its subsidiaryGoldshine Energy continues to implement

waste heat recovery from the deammoniation tower reboiler using the waste heat from condensate to heat the pure water

required in the production process reducing steam consumption by approximately 5000 tons and CO? emissions by approxi-

mately 1520 tons annually.Green office

The Company comprehensively promotes the concept of green office practices dedicated to creating an environmentally

friendly office environment.Clean energy

For air conditioning usage In office work For commuting

In 2025

it specifies a minimum tempera- it has established electronic it uses electric shuttle buses and

The Company actively promotes the clean and low-carbon transformation of its

ture setting of 26°C in summer and document management and encourages employees to prioritize

energy mix fully implementing distributed photovoltaic power generation rooftop distributed PV generated

a maximum of 20°C in winter while sharing models to promote public transportation.projects on factory rooftops developing and using clean energy and expanding

regularly maintaining air condition- paperless offices.new pathways for energy utilization.ing equipment to ensure energy-ef- 8.86 million kWh.ficient operation.

31 32Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Case

Participation in green power trading Turning Rainwater Into "Living Water": A New Practice in Water Conservation at the Plant

Changyuan New Energy has constructed two sets of rainwater collection facilities. After being collected and treated rainwater from

the factory area is reused to supplement the circulating cooling towers. This initiative saves approximately 120000 tons of tap water

The Company actively participates in the green electricity market consumes green power and reduces the proportion of fossil annually accounting for about 10% of the total annual water consumption.energy.In 2025

Case Full-Cycle Wastewater Recycling for Efficient Water Conservation

Total Renewable Electricity Consumed by the Company Purchased Green Electricity Certificates Renewable Energy Proportion

432 141 48.5 Throughout the year Minmetals New Energy treated approximately 600000 tons of wastewater through its MVR system for evapora- million kwh million kwh % tion and crystallization recovering 558000 tons of condensate and producing 31000 tons of sodium sulfate. The condensate is

treated by reverse osmosis to produce pure water for reuse in production. Meanwhile by controlling the conductivity of the concen-

trated water from pure water production secondary water production is carried out. The remaining concentrated water is used for

replenishing the cooling water towers at the oxygen generation station and the cathode material workshop as well as for leaching in

the spent battery recycling process. In 2025 the water recycling rate reached 92.78% placing the Company at a leading level in the

industry.Intensive Water Resource Management and

Recycling

Water nourishes all things and green development opens a new chapter. The Company regards intensive economical and efficient water

recycling as an important practice for green development steadily advancing the construction of a water-efficient enterprise. It strictly complies

with the Water Law of the People's Republic of China the Water Pollution Prevention and Control Law of the People's Republic of China and other Water conservation goal?

relevant laws and regulations and has formulated internal management policies such as the Management System for Water Electricity Steam and

Natural Gas. It clarifies management responsibilities and control requirements with the Safety and Environmental Protection Department

Achieve a 95% water reuse rate by 2030.coordinating the production support departments of each subsidiary for water resource management.The Company places high

importance on the efficient

recycling of water resourc-

Water conservation publicity es scientifically sets phased Progress during the reporting period?

and medium-to-long-term

The Company strengthens water conservation publicity through methods such as posting water-saving signs enhancing water-saving goals and The reuse water rate in 2025

the awareness of all employees regarding water resource conservation and management. continuously improves

water resource utilization is 92.78%.efficiency. 2025 target?

Water intake control and recycling

Achieve a water reuse rate of 92%.The Company actively promotes clean production processes and strives to build a water-efficient enterprise. Through

process optimizations such as using ammonia water and liquid caustic soda instead of ammonia-alkali mixed solutions

cascading use of washing water and recycling condensate from the MVR system it achieves source water reduction and

emission reduction improving water resource utilization efficiency. By using condensate instead of fresh water water

recycling and rainwater reuse it reduces fresh water consumption and wastewater discharge. In 2025 the Company

treated 590000 tons of wastewater and recovered 550000 tons of condensate primarily used for producing pure water

replenishing cooling circulating water and leaching in spent battery recycling processes.

33 34Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Building a Circular Economy System Case Recycling of Valuable Metals such as Nickel and Cobalt

Goldshine Energy utilizes its spent battery recycling production line to self-process nickel-containing waste residues such as wastewa-

ter treatment sludge and high-magnetic materials. It successfully applied to the Department of Ecology and Environment of Hunan

Upholding the path of circularity fostering a green foundation. The Company strictly complies with the Circular Economy Promotion Law of the

Province for an operating permit exemption for the point-to-point directional utilization of nickel-containing waste from Changyuan

People's Republic of China and other relevant laws and regulations. It has formulated internal management policies such as the Solid Waste

New Energy achieving internal circulation and resource utilization of nickel-containing waste.Management Measures Measures for the Disposal of Idle and Obsolete Materials Raw Material Pallet Recycling Recycled Pallet Cleaning and Recycled

Pallet Limit Sample. Focusing on the core objectives of resource efficiency waste reduction and minimization and resource valorization the

Company integrates circular economy principles into the entire value chain of its production and operations establishing a closed-loop develop-

ment model of reduction reuse and recycling to support efficient resource utilization.Raw materials Case Self-Developed Carbon Slag Purification for High-Value Resource Utilization

Mainly include precursors lithium salts sulfates saggars additives pallets packaging materials etc. By optimizing its production processesGoldshine Energy independently developed a carbon

slag purification technology to further improve the recovery rate of resources such as nickel

and cobalt. The patent A Method for Recycling Graphite Anode Anode Material and Lithium-Ion

Packaging materials Battery was granted as a national invention patent achieving high-value resource utilization.Paper-based: Mainly cartons paper tubes etc. all compliant with national environmental protection

and plastic restriction requirements.Plastic-based: Mainly plastic pallets aluminum foil bags PE ton bags plastic bags plastic films etc. all

free of prohibited hazardous substances.Based on its entire production and operation process the Company has built a comprehensive circular economy management system

implementing multiple measures to ensure the effective implementation of circular economy initiatives and comprehensively improve resource

utilization efficiency.Optimized packaging material management

Standardized material requisition Use of renewable resources

With a full lifecycle green packaging strategy as its core the Company systematically advances initiatives across three dimensions:

A strict material requisition system is implemented defining The pallets used for ternary products are made of high-density source reduction packaging redesign and circular reuse comprehensively reducing the environmental impact of the entire packaging

standards and procedures to prevent excessive requisitioning polyethylene (HDPE) recycled material which can be efficiently chain and building a low-carbon recyclable and traceable green packaging system.and idle waste. Resource consumption is controlled at the source recycled through physical regeneration processes. The

promoting the efficient use of various production materials such performance of the recycled material retains over 93% of that of

as raw materials and packaging materials eliminating resource virgin material effectively saving virgin resource consumption

waste. while promoting waste reduction and resource utilization.Packaging material transparency Packaging weight and volume reduction

Proactively disclose the types of Source reduction: Reduce packaging grammage and raw material

Reduction of waste generation Enhanced waste valorization materials used in product packag- consumption while meeting protection transportation and safety

ing their environmental attributes requirements. Lightweight redesign of internally used ton bags and

and usage specifications. Fully precursor ton bags has been implemented increasing unit packaging

Adhering to the principle of source reduction and process control A full lifecycle waste management system has been established. disclose packaging material lists capacity and reducing total ton bag usage.the Company works on three fronts: equipment upgrading From raw material procurement process control and enhanced supplier environmental qualifica- Packaging redesign: Optimize packaging structures to improve loading

management optimization and design innovation to continuous- management the Company reduces solid waste generation and tions and hazardous substance capacity and space utilization reduce transport volume and achieve

ly reduce the amount of waste generated during production promotes valorization. Various types of waste generated from test reports ensuring complete synergies in carbon reduction cost savings and efficiency gains.improve production efficiency and reduce resource waste. production operations are meticulously sorted recycling process- and transparent information

es are standardized and treatment methods are optimized to Circular reuse: Promote the use of recyclable pallets instead of traditional disclosure without selective

maximize resource conservation and efficient utilization. single-use packaging reducing the consumption of disposable packaging disclosure.materials.

35 36Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

The Company has completed the lightweight upgrade of

packaging by optimizing the packaging structure. The goal covers all company operations and all relevant packaging categories including factory

packaging transit packaging and logistics transport packaging achieving unified management

across all scenarios the entire chain and full coverage. The Company fully implements packaging

Enhance loading rates and reduction design eliminates excessive packaging reduces packaging waste at the source and

Under the premise of meeting Goal for eliminat-

transportation efficiency gradually phases out the use of non-recyclable and non-degradable packaging materials prioritizing transportation safety standards ing packaging

reduce logistics energy environmentally friendly recyclable materials.waste

consumption and carbon

The weight of the packaging To Decrease by emissions.ton bag decreases from

1.8 kg 1.6 kg 11 %

Case From Recycling to Regeneration: Building a Green Circular Battery Ecosystem

The Company has established a "material - battery - material" green circular system focusing on the recovery of retired power

To continuously deepen circular economy practices and improve resource utilization efficiency the Company has set sustainable development batteries and ternary cathode waste materials. Through the process of "recycling - dismantling - purification - regenerated materials"

goals for circular materials management based on its operational realities and industry trends ensuring the orderly progress and effective it achieves efficient regeneration of nickel cobalt manganese and lithium forming a green manufacturing system where waste

implementation of circular economy work. remains within the loop and resources circulate.Recycle Refine

High-Efficiency Recycling of

Nickel Titanium Manganese

Continuously increase the proportion of recycled raw materials procured and used precisely and Lithium

matching the needs of various customer projects. In 2025 the Company set annual targets of no less

than 10% for cobalt recovery and no less than 4% for nickel recovery both of which were fully Green manufacturing system with

Goal for increasing raw achieved further enhancing the value of resource recycling and responding to policy requirements

waste materials not leaving the

Disassembly cycle and resource circulation

material recycling for promoting the application of recycled materials. Retired Power Batteries/ Recycled

Ternary Cathode Waste Materials

Case Minmetals New Energy's Green Supply Chain Innovation Practice Showcased at UN COP30 Summit

The Company places great emphasis on the green and low-carbon transformation of packaging

materials. By signing green material supply agreements with packaging suppliers it continuously

increases the proportion of environmentally friendly packaging reducing virgin resource consump- On November 19 2025 at the 30th Conference

tion and environmental impact. of the Parties to the United Nations Framework

Convention on Climate Change held in Belém

Brazil Minmetals New Energy's practice in

Medium-to-long-term goal: By the end of 2030 the proportion of recyclable packaging materi- resource utilization of spent power batteries

Goal for increasing als (e.g. pallets) used shall be no less than 50%. was selected as one of the top ten cases in the

packaging material Central SOE Green and Low-Carbon Supply Chain

circularity Annual goal: In 2025 the Company set and fully achieved an annual target of 40% for the use Development Report (2025) and released

of recycled pallets maximizing the circular value of packaging materials and reducing the globally demonstrating the responsibility of

consumption of virgin packaging materials. central state-owned enterprises in global

climate governance.

37 38Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Fulfilling Ecological Responsibility - Case Minmetals New Energy Holds 2025 Annual Safety and Environmental Protection Work Conference

Committed to Going Green On January 21 2025 Minmetals New Energy held its annual safety and environmental

protection work conference studying General

Secretary Xi Jinping's important remarks on

Minmetals New Energy has always adhered to the principles of legal compliance and green development deeply embedding environmental work safety and Xi Jinping's thought on ecologi-

management into every aspect of its production and operations. By improving its institutional system consolidating principal responsibilities cal civilization summarizing past work and

strengthening risk prevention and control and systematically advancing environmental compliance management full-process pollutant control deploying annual tasks. The conference

and ecological and biodiversity protection the Company promotes harmonious coexistence and synergy between the enterprise nature and organized the signing of safety and environmen-

society. tal protection responsibility agreements and

put forward specific requirements for the year's

work further strengthening safety and environ-

mental protection management responsibili-

ties clarifying the direction and implementation

Environmental Compliance and Risk Preven- path for the year and laying a solid safety and environmental protection foundation for the

Company to adhere to the red line of work

tion and Control safety and strive to become a global leader in

the new energy materials industry.The Company strictly complies with the Environmental Protection Law of the People's Republic of China the Law of People's Republic of China on

Environmental Impact Appraisal the Measures for the Supervision and ental Measures for the Supervision and Administration of Energy Saving and The Company regularly communicates with local government regulatory authorities customers and other stakeholders to understand their

Ecological Protection for Central Enterprises and other laws and regulations. It has formulated internal management policies such as the Measures expectations and demands regarding the Company's environmental management and incorporates their requirements into the Company's

for the Management of the Energy Conservation and Ecological Environmental Protection Responsibility System the Measures for Energy Conservation management scope. At the same time the Company has established good communication mechanisms with surrounding communities closely

and Ecological Environmental Protection Management the Measures for Energy Conservation and Ecological Environmental Protection Statistical monitoring feedback from residents to avoid inconveniences caused by deficiencies in environmental management. It earnestly fulfills its

Monitoring Management and the Comprehensive Emergency Response Plan for Environmental Incidents and has begun drafting the Measures for the corporate social responsibility promoting harmonious coexistence between the enterprise and the community.Evaluation of Green Development and Ecological Environmental Protection Management effectively fulfilling its primary responsibility for ecological

and environmental protection.The Company continuously establishes and improves its ecological and environmental protection management system setting up an "Ecological Collaborative Pollutant Control and

Environmental Protection and Carbon Peak & Carbon Neutrality Leading Group" with the Safety and Environmental Protection Department

responsible for environmental protection supervision and management. It continuously optimizes and improves the energy conservation and

environmental protection responsibility system formulating a responsibility list for energy conservation and environmental protection breaking Closed-Loop Management

down and refining energy conservation and environmental protection goals and responsibilities and organizing each subsidiary to sign responsi-

bility agreements layer by layer achieving full and process-wide coverage of responsibilities. At the same time in line with the Company's relevant

assessment management systems the achievement of energy conservation and environmental protection goals is incorporated into the The Company regards the proper management of pollutants as a lifeline for its stable and long-term development. It strictly complies with the

performance evaluation system of the heads of each unit ensuring that each subsidiary's primary responsibility for energy conservation and Water Pollution Prevention and Control Law of the People's Republic of China the Law of the People's Republic of China on the Prevention and Control of

environmental protection is firmly established. Atmospheric Pollution the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste the Law of the

People's Republic of China on the Prevention and Control of Noise Pollution and other laws and regulations. Based on its actual situation it has urged

To effectively prevent and respond to environmental emergencies the Company regularly organizes the identification and evaluation of environ-

subsidiaries to establish management policies such as the Measures for Wastewater and Waste Gas Management the Measures for Solid Waste

mental factors dynamically updates them and formulates corresponding control measures for major environmental risks. It regularly organizes

Management the Measures for Noise Management and the Measures for Soil and Groundwater Management promoting the comprehensive and

ecological and environmental protection risk investigations and remediation to prevent and mitigate major environmental risks. Based on its

effective treatment of wastewater waste gas noise and solid waste.actual production conditions it has formulated the Emergency Plan for Environmental Incidents and completed the filing with the ecological and

environmental authorities. Through practical drills the Company tests its rapid response emergency handling and rescue capabilities. In 2025 Through institutionalized and checklist-based approaches the Company continuously establishes and improves its pollutant emission manage-

it organized 9 emergency drills for scenarios such as wastewater leakage solution leakage and hazardous waste leakage effectively enhancing ment system compiling a clearly defined and reasonably divided energy conservation and environmental protection responsibility list. The Safety

awareness of environmental risks and emergency response capabilities. and Environmental Protection Department is responsible for daily energy conservation and environmental protection management staffed with

full-time environmental protection personnel supervising each business department to strictly implement various pollution prevention

measures conducting regular supervision and inspection driving problem rectification and implementing assessments forming a top-down

comprehensive and efficient energy conservation and environmental protection governance system.Referring to the ISO 14001:2015 environmental management system and its own management requirements the Company builds and operates

its environmental management system at a high level. In October 2025 the Company and its subsidiaries all passed the third-party certification

audit for ISO 14001:2015 with a 100% certification rate.

39 40Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Waste Gas Management

The Company precisely deploys pollution prevention and control measures for waste gas focusing on the optimization of pollutant treatment

technologies and the construction operation and maintenance of prevention facilities establishing comprehensive and full-process waste gas

pollution prevention and control measures.The Company sets annual pollutant emission targets continuously

monitors various pollutant emissions and actively advocates for Exhaust gas pollutant treatment

harmonious and sustainable development of the enterprise's technologies and methods

economy and the social environment. It signs annual safety and Corresponding exhaust gas prevention facilities are installed

environmental protection target responsibility agreements with

Ammonia gas is treated by dilute sulfuric acid spray absorp- based on production facilities and their emission conditions.each subsidiary and each subsidiary actively adopts and

tion; sulfuric acid mist is treated by alkali liquor spray Regular environmental hazard inspections are conducted

formulates annual environmental management targets fully and

absorption; dust is treated by sintered plate dust collection and identified issues are rectified promptly. At the same

accurately implementing precise scientific and lawful pollution

baghouse dust collection cyclone dust collection and water time daily operation and maintenance of pollution preven-

control.curtain dust collection; organic waste gas is treated by RTO tion facilities are managed to ensure normal operation.(Regenerative Thermal Oxidizer) incineration. Third-party testing agencies are regularly commissioned to

conduct exhaust gas testing to ensure compliance.Construction and operation of exhaust

gas pollution prevention facilities

The Company continuously strengthens exhaust gas treatment and emission control. Air pollutant emission performance remains stable and

Annual Target 2025 Progress controllable. In 2025 among the exhaust gas emitted particulate matter emissions were 1.3 tons sulfur oxide emissions were 1.8 tons and

nitrogen oxide emissions were 6.52 tons.

100%100%

Wastewater exhaust

gas noise compliance rate compliance rate for exhaust gas wastewater

noise and other pollutants Wastewater Management

Annual Target 2025 Progress

100 100 Wastewater pollutant treatment Construction and operation of wastewater pollution General solid waste % % technologies and methods prevention facilities

disposal rate disposal rate for general solid waste

Goldshine Energy implements wastewater segregation for its precursor The Company strictly implements the

wastewater. Medium- and low-concentration wastewater is treated by a principle of "rainwater and sewage

membrane concentration process. The membrane concentrate effluent diversion clean water and wastewater

Annual Target 2025 Progress enters the pure water system for treatment and is then recycled back to diversion". Rainwater is collected by

the production line. The concentrated water enters the ammonia rainwater pipes and discharged into

100 100 stripping and MVR system for further treatment. High-salt high-ammo-

municipal rainwater pipes via rainwater

% % nia-nitrogen wastewater is treated by processes such as steam stripping outlets. Domestic sewage originates Hazardous waste deamination plate-and-frame filtration pH adjustment MVR evapora- from office and living areas is pre-treat-

compliant disposal rate compliant disposal rate for hazardous waste tion crystallization and reverse osmosis. The recovered condensate is ed by grease traps and septic tanks and

used to produce pure water and the concentrated water serves as is discharged into municipal sewage

make-up water for the cooling circulation system achieving zero pipes via domestic sewage outlets.discharge of heavy metal-containing production wastewater. The sodium Production wastewater is collected in

Annual Target 2025 Progress sulfate produced by evaporation crystallization is sold as a product. collection tanks in each workshop

Changyuan New Energy treats its lithium iron phosphate wastewater by pumped to the wastewater treatment

100 100 flocculation sedimentation multi-media filtration carbon filtration and station treated and reused with no % %

Waste sorting management membrane system. The treated clean water is reused as make-up water external discharge. In 2025 the

coverage rate coverage rate for waste sorting management for the cooling circulation system while the concentrated water enters wastewater treatment facilities operated

the MVR system for treatment and is then reused. effectively.

41 42Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Case Minmetals New Energy Implements Wastewater Segregation and Membrane Concentration Technical Upgrades Ecosystem and Biodiversity Conservation

In 2025 Changyuan New Energy and Goldshine Energy through separation of wastewater by quality and membrane concentration

technical upgrades reduced the amount of wastewater entering the MVR system by approximately 160000 tons saving about 5.7

million kWh of electricity steam about 14000 tons annually and reducing carbon emissions by approximately 7200 tons per year. The Company consistently upholds the concept of ecological symbiosis complies with international conventions such as the Convention on Biologi-

cal Diversity strictly adheres to laws and regulations such as the Law of People's Republic of China on Environmental Impact Appraisal and the

Regulations on Environmental Protection Management of Construction Projects and implements relevant directives such as the Opinions on Further

Strengthening Biodiversity Protection the China Biodiversity Conservation Strategy and Action Plan (2023-2030) and the Notice on Strengthening the

Management of Ecological Protection Redlines (Trial). It has issued a biodiversity protection policy and a supply chain biodiversity protection control

process comprehensively establishing a solid foundation for compliant development. The Company works with value chain suppliers partners

Noise Management and other stakeholders to systematically identify and manage various factors affecting biodiversity control risks and seize opportunities and

proactively take appropriate measures to minimize impacts on biodiversity promoting harmonious coexistence between humans and nature.The Company has conducted environmental impact assessments for all production and construction projects. Each project complies with the

The Company strictly complies with the relevant provisions of the Law of the People's Republic of China on the Prevention and Control of Noise requirements for ecological redlines environmental quality bottom lines and resource utilization ceilings and none are listed as prohibited

Pollution has formulated the Noise Management Measures established a noise monitoring mechanism and comprehensively applies various projects under the negative list for environmental access.noise reduction methods to strictly control the generation and spread of noise at both the source and during transmission. At the same time it

actively promotes noise reduction retrofits continuously improving noise prevention and control effectiveness and striving to create a quiet and The Company strictly implements biodiversity protection requirements; none of its construction projects involve ecological protection redlines or

harmonious surrounding environment. ecologically sensitive areas and all are located within industrial parks. After project construction vegetation is restored promptly achieving 100%

greening. Among them Changyuan New Energy has planted over 900000 new camellia azalea osmanthus and other trees laid over 60000

square meters of turf and stocked ornamental ponds with more than 300 fish such as carp and crucian carp over the past three years. At the

same time the Company places great emphasis on biodiversity protection regularly monitoring and assessing the impact of its production and

Waste Management operational activities and products on the regional ecological environment and animal and plant biodiversity. In 2025 the Company had no

significant impact on the ecological environment or biodiversity.The Company strictly implements the requirements for solid waste reduction resource utilization and harmlessness. It takes measures from raw

materials processes and management to reduce solid waste generation strengthen comprehensive utilization of solid waste and minimize its

hazards. At the same time the Company has established a comprehensive system for solid waste classification storage and transportation to

ensure proper waste treatment.General industrial solid waste

The Company has constructed general solid waste warehouses in accordance with the Standard for Pollution Control on the

Storage and Disposal Site for General Industrial Solid Wastes (GB18599-2001).General solid waste is temporarily stored by catego- In the past three years Changyuan New

ry in these warehouses after generation. Contracts are signed with qualified recycling and utilization units and the waste is Energy has grown camellia trees azaleas

regularly sold and recycled. osmanthus and other plants

Hazardous waste Over 900000 plants Laid with Turf

Each subsidiary has constructed hazardous waste temporary storage warehouses in

Over 60000 m2

accordance with the Standard for Pollution Control on Hazardous Waste Storage

(GB18597-2023). Disposal contracts are signed with qualified hazardous waste management Restore vegetation promptly after project

units. Hazardous waste is collected by category after generation stored in separate zones completion and achieve

within the hazardous waste warehouses and labeled with hazard identification signs. It is

regularly transferred and disposed of by hazardous waste management units with transfer 100 %Greening

manifests completed. Ornamental ponds stocked with carp

crucian carp and other fish species

Domestic waste 300 or more

Domestic waste is collected at designated points and entrusted to

sanitation departments for timely removal.

43 44Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Pursuing "Dual Carbon" goals -

Empowering the Future

Decision-making level Management level Executive level

Minmetals New Energy has integrated climate governance into its overall strategy establishing a climate governance framework characterized by

scientific decision-making efficient management and strong execution. It systematically identifies climate risks and opportunities conducts It regularly assesses the risks and covering the formulation and The Science and Technology

scenario analysis and adaptability assessments and coordinates greenhouse gas management full lifecycle product carbon footprint manage- opportunities brought by climate implementation of medium- to Promotion Department coordinates

ment and collaborative actions with stakeholders to support the achievement of the "dual carbon" goals and promote green development in the change and formulates climate long-term plans annual plans and the Company's climate and "dual

industry. actions. related policies. carbon" actions.

010203

Climate-Related Governance The Company's climate-related governance bodies and personnel possess professional backgrounds and knowledge in climate change

proficiently use climate-related verification tools and are familiar with relevant research methods and regulations providing clear direction and

professional advice for the Company's response to climate change.Based on stakeholder input and actual circumstances the Company has prepared the Minmetals New Energy Carbon Neutrality Development

Report fully identifying and considering sustainability-related risks and opportunities such as climate change with a focus on key areas including

The Company continuously builds and improves its climate-related governance structure forming a top-level climate carbon emission management product carbon footprint management and energy management. At the same time it has formulated energy-sav-

governance design with the Board of Directors as the highest decision-making body. The Board is responsible for the ing and carbon-reduction targets and assessment criteria for the 2025-2027 term incorporating these indicators into the annual performance

final review and approval of the Company's climate transition strategy climate-related targets and action plans. The evaluations of each subsidiary directly linked to annual performance promoting the implementation of energy-saving and carbon-reduction

ESG Working Group and the "Ecological Environmental Protection and Carbon Peak & Carbon Neutrality Leading goals through an institutionalized measurable approach.Group" serve as permanent decision-making and supervisory bodies for climate-related matters with the core function

of ensuring that climate actions are highly coordinated with and orderly advanced alongside the Company's overall Decision-mak-

development strategy. ing level

Climate-Related Strategy

As the core coordinating body for climate transition work management is responsible for formulat- As global efforts to address climate change deepen climate challenges and development opportunities are accelerating their intertwined

ing climate strategy objectives overall planning identifying and assessing climate-related risks evolution. The increasing frequency of extreme weather events tightening global low-carbon policies and the growing demand for green and

coordinating across departments and reporting to the Board. The ESG Working Group under the low-carbon products are collectively shaping a new operating environment for the industry. The Company maintains a clear understanding and

guidance of management performs execution and supervision functions specifically responsible strategic judgment of this situation: climate risk is a major issue that requires proactive management and as a core player in the battery materials

for refining climate-related plans supervising action plans tracking progress and evaluating Management sector deeply participating in the global energy transition is also a significant opportunity for the Company to adapt to trends and achieve

implementation effectiveness ensuring the effective execution of the climate strategy. level high-quality sustainable development.Climate-Related Risks and Opportunities

At the execution level the "Ecological Environmental Protection and Carbon

Peak & Carbon Neutrality Leading Group" coordinates all climate-related work

and reports upward on a regular basis. The Company strictly complies with To systematically enhance its climate issue management capabilities the Company has established a regular process for identifying assessing

ecological and environmental laws and regulations formulating and issuing and managing climate-related risks and opportunities. Risks and opportunities are prioritized based on their probability evolution trends and

the Carbon Neutrality Procedure Document to provide clear institutional norms

Execution potential financial impacts with quantitative analysis focused on those with significant financial implications. Quantitative assessments cover

and operational guidelines for climate governance and carbon neutrality work.level three time horizons: short-term (0-2 years) medium-term (3-5 years) and long-term (6-10 years) with the resulting risk and opportunity list

reviewed and dynamically updated annually. In its analysis of transition risks and opportunities the Company uses current policies as a baseline

while also setting an accelerated low-carbon transition scenario to assess the potential impacts of policy tightening technological iteration and

shifting market demand.

45 46Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Risks Risk Description Time Horizon of Impact Management Measures Opportunity Description Time Horizon of Impact Management Measures

May impact supply chains and produc- Short-term Strengthen climate risk assessments As demand for clean energy increases Medium to Invest in technology R&D. Strengthen

tion facilities resulting in asset losses promote sustainable development the market for lithium battery compa- long term R&D on high-performance low-cost

Extreme weather and potential employee safety strategies and enhance facility Growing demand

nies in areas such as batteries may lithium battery technologies to meet

changing precipita- incidents. resilience. for clean energy

expand. market demand.tion patterns

Adjustments to climate policies may Medium to Promote sustainable development Increasing the use of clean energy can Medium to Develop photovoltaic power generation

affect production and operations; local long term strengthen policy monitoring and further reduce energy procurement long term projects purchase green electricity etc.governments may implement stricter compliance management and actively Energy use costs.environmental regulations imposing participate in industry dialogues.stringent limits and emission quotas on

Policy and legal risks "three wastes" and greenhouse gas

emissions. Compliance with these new

rules and standards will increase

compliance costs.Climate-related technological innova- Medium to Invest in R&D. Dedicate R&D resources to

tion may bring new development long term developing more environmentally

Technological opportunities for the Company. friendly efficient products and technolo-

innovation drive gies.Key raw materials for lithium batteries Medium to Diversify the supply chain. Ensure

may be affected by resource shortages long term stability of raw material supply seek

or price volatility caused by climate alternative materials or partners;

change. collaborate with upstream and

downstream partners on carbon

Raw material supply

reduction actions establish collaborative Proactively addressing climate change Medium to Disclose proactively. Regularly publish

mechanisms and enhance value chain can enhance the Company's social long term the Company's ESG report disclosing

resilience to climate change. image. information such as progress on

Brand image energy-saving and emission reduction

enhancement targets to enhance the Company's green

image.Energy demand during processing and Medium to Improve energy efficiency. Regularly

production may increase due to climate long term inspect production facilities for hazards

change leading to higher costs. upgrade equipment promptly; optimize The proliferation of electric vehicles will Medium to Expand production scale. Improve

production processes to reduce energy drive demand for high-performance long term production efficiency to ensure the

Energy consumption consumption and improve energy lithium batteries. supply of lithium battery cathode materi-Electric mobility

efficiency. als keeps pace with the growth of the development electric vehicle market.

47 48Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Climate Scenario Analysis

The Company uses scenario analysis to conduct carbon footprint calculations under different scenarios employing SimaPro software for quanti- Energy management Supply chain optimization Product R&D

tative calculations and establishing its own climate risk analysis system covering a baseline scenario and multiple stress scenarios. The baseline

scenario serves as a control reference without external interference while stress scenarios are set based on relevant policy requirements.Increase the use of renewable energy Develop contingency plans with Develop environmentally friendly and

and build distributed photovoltaic suppliers expand supply channels. efficient materials.facilities.For physical risk analysis

The Company selects two climate scenario models RCP4.5 and RCP8.5 to simulate climate change trends Policy trends Procurement Others

under different temperature rise pathways systematically assessing the potential impacts of acute and

chronic climate risk intensification on the Company's production operations and financial condition

further broadening the dimensions of climate risk analysis and deepening assessment. Changes in new energy and carbon Actively adjust procurement Monitor carbon emissions under the

emission policies will affect costs and strategies prioritize the procurement influence of green electricity use and

demand with significant impact from of recycled materials and optimize recycling rates and formulate relevant

the EU's new battery regulations. The production processes to improve strategies.Company will continuously monitor capacity utilization.related developments.Considering that the clean energy structure directly affects the carbon emission levels in the electricity consumption process the Company

calculated the potential impacts of climate change on its operations under three scenarios: 20% 50% and 100% green power usage.Climate Impact Risk and Opportunity Man-

In terms of the recycling and utilization of secondary raw materials agement

The Company has established and continuously optimized scenario analysis plans comparing the carbon

emission reduction effects corresponding to different proportions of recycled material use. Calculations Climate Risk Identification and Assessment

show that when the recycled material usage ratio reaches 50% it can effectively reduce the carbon footprint

of cathode materials and batteries by 20.56% and 10.37% respectively.The Company conducts specialized work on climate-related risks integrating the identification and assessment of risks and opportunities into its

overall risk management system. It has established a complete mechanism covering environmental risk identification risk assessment and

prioritization and risk response.Going forward the Company will continuously improve its data collection and management system for climate-related risks enhance data Climate risk response Climate risk identification Climate risk assessment

availability and accuracy and continuously optimize its climate risk stress testing models improving model applicability and precision through mechanism

multi-dimensional validation. It will comprehensively assess various potential impacts of climate change on its business operations in a scientific

and rigorous manner strengthening its climate risk management defenses. Through value chain analysis Based on key indicators such as After the Board of Directors reviews

climate database risk screening and probability of occurrence speed of the climate risk list the Sustainable

industry research the Company onset and financial materiality the Development "Dual Carbon"

identifies and analyzes links in the Company conducts in-depth assess- Working Group organizes relevant

value chain that are vulnerable to ments of identified climate risks and functional and operational depart-

climate risks as well as potential opportunities prioritizing those that ments to respond to climate risks

Climate Adaptability Assessment opportunities assessing their short- may have a significant financial including developing comprehen-

medium- and long-term impacts on impact on the business. sive climate transition risk control

the Company's operations. measures an emergency manage-

ment system and climate resilience

The Company's long-term climate adaptation is influenced by energy supply and low-carbon transition. Changes in downstream demand and

improvement projects.fluctuations in raw material supply impact the business model while also having related effects on the climate.

49 50Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Greenhouse Gas Emission Management

To accelerate the achievement of carbon peak and carbon neutrality goals the Company has established an "Ecological Environmental Protection Manufacturing

and Carbon Peak & Carbon Neutrality Leading Group". The group studies and formulates the Carbon Peak Action Plan 2025 Annual Work Plan

clarifies the responsibilities of each unit establishes a carbon emission data monitoring system regularly collects and records emission data and Continuously improve energy efficiency Procure renewable energy electricity through market

conducts accounting and reporting. Focusing on three main areas - process improvement equipment upgrading and management enhance- steadily reduce electricity consumption mechanisms build photovoltaic power stations

ment - the Company fully implements energy-saving carbon-reduction and efficiency-enhancing actions. In 2025 projects such as the second during manufacturing. continuously increase the proportion of green

phase of the rooftop photovoltaic power plant at Changyuan New Energy and the automatic venting regulation optimization of the air separation electricity used.system at the oxygen generation station were implemented. Through the recovery and utilization of condensate and spray drying waste heat the Deeply implement energy-saving and

Company improved energy and resource efficiency reducing CO? emissions by 25700 tons effectively controlling and reducing energy consump- emission-reduction initiatives promote Continuously optimize processes improve overall raw

tion and gradually mitigating total carbon emissions and emission intensity. The Company organized a carbon inventory for 2024 fully green and low-carbon transformation of material utilization rates.understanding its carbon emission baseline and further standardizing data collection accounting and reporting procedures. production operations.It formulated an annual safety and environmental protection work plan defining annual work targets and organized the signing of responsibility

agreements at each level. Based on the 2025-2027 term energy-saving and carbon-reduction targets set by China Minmetals the Company broke

down and refined these targets into term goals and assessment standards for each subsidiary and assessed their achievement at the end of the

year ensuring each subsidiary's primary responsibility for energy saving and carbon reduction.Transportation

Accelerate the construction of a low-carbon Leverage smart warehousing and new energy

transportation system promote green equipment to create green and efficient warehousing

Product Lifecycle Carbon Footprint Management logistics upgrades. scenarios.Promote the use of clean and environmental- Continuously optimize transportation routes compre-

ly friendly containers and pallets reduce the hensively improve logistics and warehousing

In the context of the global response to climate change downstream customers are increasingly concerned about the carbon footprint of environmental impact of packaging. operation management levels.products throughout their lifecycle. Countries such as France and Germany have successively incorporated product carbon footprint certification

into core market access requirements continuously advancing the iteration and improvement of relevant standards and reinforcing the manda-

tory requirement for low-carbon development across the entire industrial chain. The Company deeply understands industry trends actively

responds to global low-carbon policy directions and customer green demands comprehensively manages the environmental impact of products

throughout their lifecycle and systematically implements carbon reduction actions at each stage to continuously reduce product carbon

footprint.Use

Design and material use

Continuously improve product lifespan balancing product economic and environmental benefits achieving

efficient resource utilization.Design products to minimize environmental impact considering the full lifecycle.Effectively reduce the unit carbon footprint of products supporting the realization of full lifecycle low-carbon

Optimize the proportion of recyclable components in assemblies continuously improve product material

goals.recovery rates.End-of-life treatment

Raw material procurement

Strictly control the use of hazardous chemical substances reduce the environmental impact of ternary material

Increase the proportion of recycled materials Increase the use of low-carbon technologies and low-car- products during disposal and at the end of their lifecycle and promote green and safe development throughout

used in products. bon raw materials. the lifecycle.Select suppliers with better carbon footprint Continuously promote low-carbon raw material procure-

performance. ment and substitution.

51 52Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

The Company responds to policy requirements such as the Opinions on Accelerating the Establishment of a Product Carbon Footprint Management

System standardizing its product carbon footprint accounting and management and developing calculation methods. It has formulated product

carbon footprint management measures based on international standards such as ISO 14067:2018 Greenhouse Gases - Carbon Footprint of

The Company has also established a carbon footprint management system platform. This platform integrates a product life cycle

Products - Requirements and Guidelines for Quantification and PAS 2050:2011 Specification for the Assessment of the Life Cycle Greenhouse Gas

assessment (LCA) calculation engine compliant with the ISO 14067 standard and incorporates a database and models aligned with

Emissions of Goods and Services.the EU's PEF methodology. It enables information-based traceability and process-based management control of "dual carbon"

related data further enhancing the standardization and refinement of carbon footprint management.Product Carbon Footprint Assessment Report Greenhouse Gas Inventory Report

Carbon Footprint Management System

The carbon footprint of the Company's ternary products has obtained third-party certification with the accounting boundary strictly following the

"cradle-to-gate" principle and the assessment scope covering the entire product lifecycle. For key products the Company adopts a combination

of self-accounting and third-party certification for carbon footprint evaluation. In the accounting process it comprehensively utilizes localized

databases tailored to China's actual conditions alongside internationally recognized generic databases ensuring that carbon footprint accounting

results are scientific objective and comparable.Product Carbon Footprint Certification

53 54Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Stakeholder Engagement in Decision-Making Climate Metrics and Targets

The Company deeply recognizes that achieving climate transition goals cannot be accomplished alone. It requires collaborative efforts with

upstream and downstream stakeholders to jointly build a low-carbon and resilient industrial ecosystem. To this end the Company has formulat-

ed a systematic stakeholder engagement strategy orderly guiding and standardizing communication and collaboration with core stakeholders to The company strictly adheres to the United Nations Framework Convention on Climate Change actively responds to the "dual carbon" policy call

drive low-carbon transformation across the entire value chain. and has established a climate-related target system based on its business development strategy and industry low-carbon transition trends

balancing compliance with strategic orientation.Stakeholder Type Key Targets Core Objectives Expected Contribution

Scope 1 and Scope 2 Emission Reduction

Key raw material suppliers Collect emission data encour- Improve the accuracy of Scope 3

high-emission suppliers age suppliers to set emission emission calculations transform- The Company officially announced its commitment to achieving net-zero emissions by 2050 and plans to complete the Science Based Targets

logistics service providers. reduction targets enhance ing indirect emissions into initiative (SBTi) validation and approval by 2030. To ensure the timely achievement of emission reduction targets and the net-zero vision the

carbon management capabili- measurable manageable and Company has formulated a series of specific quantifiable action goals covering key areas such as energy management optimization energy

Suppliers ties build a green supply actionable initiatives. efficiency improvement and renewable electricity consumption.chain.Renewable Energy Proportion

Large enterprise customers Understand low-carbon product Meet customer needs attract new

customers with specific demands showcase carbon clients ensure market returns on 100%

sustainability requirements footprint advantages collabo- low-carbon investments and

Customers rate on developing low-carbon establish a virtuous cycle.application scenarios.>50%

Investors ESG rating Clearly communicate climate Reduce investors' perception of

agencies. risks and opportunities disclose risk secure long-term strategic

transition progress and support and ensure funding for

Investors respond to climate information low-carbon technology and energy

disclosure requirements. efficiency improvements.

2023202420262035

Central and local policy-mak- Participate in policy and Strive for a favorable policy Energy-saving and consump-

ing institutions and regulato- standard formulation grasp environment guide enterprises in tion-reduction technical upgrades

ry bodies as well as interna- policy trends and make developing forward-looking Use of renewable energy Energy-saving and consump-

Government and

tional organizations such as advance preparations. strategies and enhance the impact tion-reduction technical upgrades

international Industrial process natural gas tail

the UN. of actions.organizations gas recovery Use of renewable energy Further enhancement of energy

Lean management Industrial process natural gas efficiency

tail gas recovery Energy structure optimization

International organizations Align climate action with interna- Promote the integration of climate Lean management and renewable energy utilization

industry associations. tional leading standards and actions with global practices and Clean heating

expand corporate social play a leading role in the industry. Carbon offsetting

Industry influence.associations

Local communities where Manage social impacts of Reduce operational risks

factories are located all transition enhance employee improve internal and external 2023 2030 2040 2050

employees. engagement create shared climate perception and participa-

value through local projects. tion capabilities and enhance

Communities corporate resilience and social Note:The Company's Scope 1 greenhouse gas emissions refer to the carbon dioxide emissions generated from the consumption of fossil fuels including gasoline used by

and employees reputation. company vehicles and natural gas used in production and logistics services. The company's Scope 2 greenhouse gas emissions refer to the greenhouse gas emissions

converted from net purchased electricity and steam primarily including electricity and steam purchased for production office operations and logistics.

55 56Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Green Energy in Action Painting a Shared Future with Green

Enhancing Internal Scope 3 Accounting Capabilities Going forward the Company will continue to focus on optimizing Scope 3 emission accounting striving to incorporate more supplier-level data. For purchased goods it will systematically collect and apply product carbon footprint data provided by suppliers continuously improving the

accuracy and comparability of Scope 3 emission calculations. At the same time the Company will timely assess the impact of changes in account-

ing methodologies and emission factors. In the event of significant adjustments it will promptly recalculate base year emissions to ensure the

The Company continuously enhances its Scope 3 emission accounting capabilities striving to improve the accuracy completeness and compara- scientific validity compliance and continuity of emission accounting.bility of calculation results. Strictly following the ISO 14064 standard the Company monitors and reports Scope 3 emissions covering categories

including purchased goods and services fuel- and energy-related activities waste generated in operations employee commuting business

travel and upstream and downstream transportation and distribution. This covers categories 1 3 4 5 6 7 and 9 achieving a coverage rate of

70%. At the same time the Company continuously optimizes accounting methods and data sources. By using more granular procurement data

to match corresponding emission factors replacing industry average emission factors with actual supplier data and incorporating more localized

emission factors the Company continuously improves the accuracy and scientific rigor of its Scope 3 emission accounting. Total GHG emissions

44.64 10000 tCO2e

Category 1: Purchased goods and services

Scope 1 GHG emissions Scope 2 GHG emissions

Category 3: Fuel and energy-related activities 3.41 10000 tCO2e 41.23 10000 tCO2e

Category 4: Upstream transportation and

distribution

GHG emission reductions

Category 5: Waste generated in operations 25718 Ton of CO2 equivalent

Category 9: Downstream transportation

and distribution Scope 1 emission reductions Scope 2 emission reductions

Category 7: Employee commuting 5513 Ton of CO2 equivalent 20205 Ton of CO2 equivalent

Category 10: Processing of sold products

Category 2: Capital goods

Category 6: Business travel

Category 15: Investments

Category 12: End-of-life treatment of sold

products

Category 8: Upstream leased assets

57 58Embracing Warmth to

Build a Win-Win Ecosystem

with Responsibility

Minmetals New Energy consistently upholds a development philosophy centered on people customer focus

innovation-driven growth and collaborative win-win outcomes. We are deeply committed to talent cultivation and

rights protection strengthening product quality and customer trust advancing technological innovation and

intellectual property safeguards and forging a resilient and efficient supply chain ecosystem. Staying true to our

central SOE mission we actively fulfill social responsibilities by promoting rural revitalization and public welfare

initiatives infusing development with warmth and responsibility with depth.Response to the United Nations Sustainable Development Goals (SDGs)

59 60Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Empowering Careers and Uniting

Total Number of Employees

for Growth 2313 Person

Minmetals New Energy remains steadfast in compliant employment practices and humanistic care grounded in equal opportunity rights protec-

Ethnic Minority Employees Disabled Employees Veteran Employees

tion talent development and democratic governance. We comprehensively strengthen employee growth foundations by establishing a diverse

and inclusive hiring system refining end-to-end rights protection mechanisms creating multi-channel development platforms and deepening 124 Person 5 Person 61 Person

democratic participation. This safeguards employees' legitimate rights unlocks their potential and achieves collaborative success with our

Percentage of Ethnic Percentage of Percentage of

workforce.Minority Employees Disabled Employees Veteran Employees

5.36%0.22%2.64%

Compliant Recruitment and Diverse Talent 30 and Below

Full-time Employees Male 810 Person

Acquisition By 2313 Person 1813 Person 30-50 (lnclusive)

Employment By Gender By Age

Type? Part-time Employees Female 1386 Person

0 Person 500 Person Above 50

The Company strictly adheres to relevant laws and regulations including the Labor Law of the People's Republic of China and the Labor Contract Law 117 Person

of the People's Republic of China. It has established and implemented a series of rules and regulations such as the ecruitment Management

Measures and the Labor Contract Management Measures to strengthen the foundation of compliant recruitment practices.The Company adheres to lawful and compliant hiring practices ensuring the authenticity of recruitment information the fairness of the recruit- Doctoral DegreeProduction Technical Sales

ment process and the impartiality of hiring outcomes. The Company fosters an equitable employment environment strictly prohibits employ- Personnel Personnel Personnel 12 Person

ment discrimination and ensures that no job applicants are subjected to discrimination based on age gender ethnicity or any other factors 1492 Person 637 Person 12 Person

thereby effectively safeguarding workers' rights to equal employment. By By Master's DegreeProfessional Education

Category Financial Procurement Administrative Background 216 Person

The Company emphasizes diversity and inclusion. Aligned with its actual operational and production needs it actively attracts top talent from

Personnel Personnel Personnel

various backgrounds and disciplines through multiple channels including social recruitment campus recruitment and internal job competition. Bachelor and Below

21 Person 32 Person 119 Person 2085 Person

With the development of the R&D With the development of the production With the development of the skilled

talent team as the core focus engineer team as a key priority talent team as the foundation

The Company is strengthening the The Company is enhancing the recruit- The Company is adopting a

recruitment of R&D personnel to ment of engineers specializing in multi-pronged approach to recruit

achieve continuous expansion in scale process equipment and quality frontline technical workers providing Employment Management

and ongoing optimization of the aiming to establish a reasonable the manpower support necessary to

structure of the R&D workforce. talent reserve while meeting produc- ensure stable and orderly production

tion demands . and to achieve the core objectives of

"Ensuring Production and Securing The Company continuously standardizes its labor and employment management practices and effectively safeguards the legitimate rights and

Delivery" . interests of its workforce. It establishes and improves labor and employment rules and regulations in accordance with the law ensuring that

workers enjoy their labor rights and fulfill their corresponding obligations; it implements a policy of signing labor contracts with all eligible

employees and arranges for the execution of written labor contracts promptly; it strictly fulfills its statutory disclosure obligations as an employer

with pre-employment notification and training conducted in a standardized and procedural manner; it explicitly prohibits the recruitment of child

labor a requirement rigorously enforced during resume screening interview assessments and onboarding procedures. In 2025 the Company

received zero complaints related to human rights issues and recorded zero incidents of child labor. The Company fully performs its duties as an

employer in strict accordance with the terms stipulated in labor contracts. Any amendments terminations or expirations of labor contracts are

carried out in full compliance with laws and regulations.

61 62Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Employee Well-being and Occupational Case Minmetals New Energy Successfully Concluded the First "Minmetals New Energy Cup" Sports Festival

Health In November 2025 Minmetals New Energy organized the first "Minmetals New Energy Cup" Sports Festival featuring events such as

air volleyball and basketball competitions where teams competed for awards. During the games participating employees demon-

strated tenacity teamwork and a competitive spirit fully showcasing the indomitable and striving ethos of Minmetals New Energy.Remuneration and Benefits

The Company has established normative documents such as the Company Compensation Management Measures and Company Employee

Performance Appraisal Management Measures to provide industry-competitive compensation and ensure timely and full payment. The Company

respects the value differences across positions implements differentiated compensation systems for various job categories and establishes a

scientific reasonable and effective compensation distribution model with a dynamic adjustment mechanism. The Company actively responds to

employee demands. Attendance results performance evaluations and disciplinary actions are confirmed by employees' signatures and employ-

ees have the right to appeal if they have objections.The Company consistently adheres to a people-oriented approach delivering thoughtful and compassionate employee care services and

fostering team cohesion through diverse activities.Health Care

We organized initiatives such as summer cooling measures comprehensive health checkups scientif- Case Minmetals New Energy Participated in China Minmetals Central China Regional Employee Sports Meet

ic weight-loss lectures and "Xiangzhi Workshop" sessions. The Company also provided targeted

support for employees in need and facilitates medical mutual aid applications effectively safeguard-

ing employees' physical and mental well-being. In October 2025 the first China Minmetals Central China Regional

Employee Sports Meet was held in Wuhan featuring 28 competition

events across five categories: individual athletics team athletics

individual fun games team fun games and on-site experiences. The

Minmetals New Energy team demonstrated tenacious willpower and

relentless fighting spirit securing multiple honors in both individual

Sports & Recreation events and group fun competitions while the Company received the

Outstanding Organization Award.We successfully hosted the first "Minmetals New Energy Cup" Sports Festival featuring tug-of-war

volleyball badminton and basketball competitions. The Company also actively participated in the

inaugural China Minmetals Central China Regional Employee Sports Games winning the Outstanding

Organization Award and showcasing the team's vibrant spirit.Cultural Life

We carefully curated signature events such as the Lantern Festival celebration Women's Day movie

screenings Tree Planting Day and Dragon Boat Festival intangible cultural heritage activities to enrich

festive atmospheres. The Company also continued to organize Family Open Days and the second

"Dream Building with Children" summer research program leveraging family bonds to empower

corporate development and cultivate a warmer more cohesive corporate culture.

63 64Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Case Minmetals New Energy Trade Union Hosted "Savoring Zongzi Inheriting Intangible Cultural Heritage" Themed Event Case Minmetals New Energy Held Second "Children's Dreams" Summer Research Activity

To enrich employees' cultural life and promote China's outstanding tradition- In August 2025 Minmetals New Energy organized the second edition of its "Children's Dreams" summer research program. The event

al culture in June 2025 the Minmetals New Energy Trade Union organized featured carefully designed sessions including themed lectures fun knowledge competitions and visits to the corporate culture

the "Savoring Zongzi Inheriting Intangible Cultural Heritage" themed event. exhibition hall helping children learn about the new energy industry as well as the Company's development history products and

Activities included traditional handicraft experiences such as five-colored silk processes. Additionally parent-child interactive games were held on-site allowing employees and their families to enjoy quality time

ropes making DIY sachets and bead stringing alongside a Dragon Boat together. This not only strengthened family bonds but also exposed children to new energy knowledge planting seeds of innovation

Festival cultural knowledge quiz and special holiday delicacies. in their minds.Case

Case Minmetals New Energy Launched "Spring Breeze Warms March Love Welcomes Goddesses' Day" Movie Screening Event

On March 7 2025 to celebrate the 115th Interna-

tional Women's Day enrich female employees'

spiritual and cultural lives and enhance their

cohesion the Minmetals New Energy Trade Union

organized a screening of the film "Nezha: The Devil's

Birth" for over 200 female employees. This reimag-

ined classic conveys an indomitable spirit of

perseverance and responsibility offering a dual Health and Safety

feast of visual and intellectual inspiration.The Company places high importance on employee health and

workplace safety actively promoting health awareness conducting

health training and fostering a healthy environment to enhance

employees' occupational health awareness and literacy. The Company

has formulated the General Emergency Response Plan for Public

Emergencies Emergency Management Measures for Public Emergencies

and Management Measures for Workplace Safety Emergency Prepared-

ness establishing a "1+1" emergency response framework for public

emergencies. Subsidiaries have respectively established Workplace

Accident Emergency Response Plans covering comprehensive emergen-

cy plans specialized emergency plans and on-site response

procedures. The Company has obtained ISO 45001:2018 Occupational

Health and Safety Management System Certification. ISO 45001 Certification

The Company adheres to the bottom line of safety development continuously advances the dynamic clearance of major accident hazards

conducts special rectifications in key areas such as fire safety and subcontractor construction and strengthens workplace safety safeguards. We

consistently improve the safety management system enhance the dual prevention mechanism establish assessment mechanisms for safety

production management optimize reporting channels for safety violations and elevate the effectiveness of safety and environmental protection

management. We rigorously organize thematic campaigns including "Workplace Safety Month" and "Fire Prevention Awareness Month" conduct

emergency drills for key risks such as hazardous chemical leaks and fire evacuations and strengthen employees' safety and environmental

awareness. We strengthen occupational health management by conducting pre-employment on-the-job and post-employment health checkups

establishing occupational health records implementing "family doctor" programs in workplaces and advancing the "Healthy Enterprise"

initiative.

65 66Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Case Minmetals New Energy Launched the "Safety First Lesson for Work Resumption" Campaign Series Talent Cultivation and Development

In February 2025 Minmetals New Energy organized a series of activities titled "Safety First Lesson for Work Resumption" to deploy Empowerment

safety measures for production restart. The Company reinforced primary responsibilities implemented relevant measures

established special inspection teams conducted comprehensive on-site hazard inspections and supervised immediate

rectifications—providing solid safety assurance for high-quality development in 2025. Adhering to the philosophy of "prospering the enterprise through talent" the Company genuinely focuses on employee growth by formulating

and implementing the Education and Training Management Measures along with supporting policies. Based on job characteristics the Company

provides employees with multiple career paths including management track professional track specialist track and operational track. It

establishes a diversified career development system featuring vertical promotion horizontal job rotation and lateral movement to core

positions. The Company establishes scientific talent evaluation and selection mechanisms actively promotes talent echelon construction

implements reserve management cadre training programs and builds extensive platforms for employee growth.The Company has implemented a series of measures including job rotation mentorship programs and skills competitions to fully unlock

employees' potential. These initiatives empower individual career development and inject vitality into the Company's long-term growth building

a high-quality talent force to support the Company's high-quality development.Democratic Management and Rights

Protection

The Company strictly adheres to the staff-representative congress system convening two sessions annually to review major matters such as

salary adjustment plans employees' rights to information participation and oversight are validly implemented. The Company upholds and

improves the employee director system safeguarding staff representatives' rights to orderly participation in corporate governance. Democratic

Case Goldshine Energy Conducted Confined Space Emergency Drill management remains a key agenda item with established channels for employee feedback to protect workers' rights. The Company maintains

transparency in factory affairs promptly disclosing important matters through bulletin boards OA systems and other channels. Solicit proposals

from staff representatives collect reasonable suggestions through the "Suggestions Box" actively listen to employees' suggestions and opinions

On June 25 2025 Goldshine Energy carried out a comprehensive confined space emergency drill aiming to thoroughly implement on Company development and effectively address their concerns. Organize symposiums with key talent representatives to understand their

President Xi Jinping's important directives on workplace safety and enhance employees' safety awareness and emergency response perspectives and widely solicit opinions on Company reforms and development. By continuously deepening democratic management we not

capabilities. The drill adopted a combat-oriented approach simulating a scenario where a subcontractor collapsed after entering a only fully safeguard employee rights but also foster broad consensus for scientific decision and steady development.synthesis tank without authorization. After activating the emergency response plan all response teams coordinated seamlessly

executing standardized rescue procedures including CPR and successfully completed the mission. After the drill hands-on CPR and

AED operation training were conducted to strengthen all-staff emergency skills. This drill deepened employees' awareness of confined Case Minmetals New Energy Held Symposium with Key R&D Talent Representatives

space operation risks honed the emergency team's coordination capabilities and implemented confined space operation safety

management requirements. It provided solid support for the Company to strengthen production safety defenses and ensure

high-quality development. In December 2025 Minmetals New Energy

organized a symposium with key R&D talent

representatives where participants actively

contributed suggestions on R&D manage-

mentachievement transformation technical

breakthroughs and talent force building. This

symposium established a platform for scientific

research exchange extensively pooled innovative

wisdom clarified the direction of research work

and further ignited the enthusiasm of research

backbones. It provided strong support for the

Company to strengthen technological innovation

and achieve high-quality development.

67 68Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Sincerely Service Customers Value By the end of 2025 the Company had obtained GB/T19001-2016/ISO9001 quality management system certification while two subsidiaries had achieved both GB/T19001-2016/ISO9001 quality management system certification and IATF 16949 automotive quality management system certification. Subsidiary laboratories had been accredited by CNAS (China National Accreditation Service for Conformity Assessment).Co-Creation The Company regularly conducts internal and external product testing and evaluations to ensure quality and safety. Internal monitoring includes product sampling and trend tracking while external monitoring involves third-party product testing.Minmetals New Energy has always regarded product and service quality as the foundation of development. By strengthening responsibility

implementation deepening digital and intelligent empowerment and fostering a quality culture the Company continuously refines product and

service quality. With craftsmanship and commitment it fulfills quality promises creates long-term value for customers and promotes the

prosperous development of the industrial ecosystem.Product and Service Product Recall

Management System System

Product Quality Governance Production Control Procedure Customer Feedback Control

Supplier Control Procedure Procedure

Nonconforming Product Control

Procedure...The Company strictly complies with the Product Quality Law of the People's Republic of China Metrology Law of the People's Republic of China Detailed

Rules for the Implementation of the Metrology Law of the People's Republic of China Application Requirements for the Competence Recognition Criteria

of Testing and Calibration Laboratories and Guidelines for the Recognition of Internal Testing Laboratories. It adheres to relevant control regulations After-Sales Customer

such as RoHS EU REACH TSCA POPs and PFOS and has formulated the Quality Management Measures of Minmetals New Energy Materials (Hunan) Service System Complaint System

Co. Ltd. to comprehensively standardize quality management work. Meanwhile the Company has established a quality and safety accountability

system covering all employees including top management management representatives and personnel at all levels of management and Sales Management Measures Consumer Feedback Control

operations clarifying the quality management framework and responsibilities. Implementation Rules for Account Procedure

Manager Mechanism

Consumer Feedback Control Procedure

Top Management Management Representative

Formulate quality strategies implement the quality Formulate quality policies and objectives plan the

and safety accountability system enhance organiza- establishment operation and continuous improve-

tion-wide quality awareness fulfill quality responsi- ment of the ISO 9001/IATF 16949:2016 quality Product Quality Strategy

bilities and establish a quality culture and values. management system exercise the authority of

quality veto and implement quality assessment

incentives.The Company adheres to the quality management philosophy of "crafting products and services that exceed customer expectations with artisan

spirit". Upholding the service principle of "observing the market attentively and treating customers sincerely" we remain customer demand-driv-

en. Through professional dedication standardized management precise control innovative management models and continuous improvement

initiatives we strive to deliver products and services that surpass customer expectations achieving mutual growth.Production/Inspection and Other Management

Quality Management Positions

and Operational Execution Positions

Assume primary management responsibilities Assume direct responsibility operate in accordance

strengthen process quality control and supervision with quality management requirements and

organize quality analysis correction and improve- operational procedures and fulfill the quality and

ment and implement the quality and safety account- safety responsibility system.ability system.

69 70Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Product Quality Impact Risk and Opportunity Product Quality

In 2025

Management Metrics and Targets The Company had zero major liability

accidents related to product and service

safety and quality.The Company has established a comprehensive supplier evaluation system implementing a "dynamic assessment survival of the fittest"

approach. Suppliers are categorized into four tiers—"A" "B" "C" and "D"—based on evaluation results. Tier D suppliers are deemed unqualified

and excluded with re-entry prohibited for one year. Additionally a "blacklist" mechanism further strengthens supplier oversight. Throughout the

year raw material controls are implemented for 260 suppliers.The Company and its two subsidiaries have established dedicated quality management departments. By building "systems + technology +

standards" we have developed process control specifications and standards covering the entire business workflow—from customer requirement Quality Management Achievements and

identification product design and development manufacturing and product delivery to customer feedback.All subsidiaries have established independent testing centers building professional management and inspection teams and setting up compre- Service Assurance

hensive quality inspection systems. These testing centers are all accredited by CNAS.The Company has developed a quality management cockpit to enable real-time monitoring of product pass rates raw material qualification rates

and quality performance of customers and suppliers. All testing centers have fully completed the building and operation of LIMS systems

achieving paperless sample submission and testing processes automated data updates and integration with a single click and efficient traceabili- The Company organizes diverse quality improvement activities such as quality awareness

ty of test results. Subsidiary Changyuan New Energy has piloted the building of a smart laboratory system realizing real-time visual management training quality knowledge competitions and quality benchmarking evaluations fostering

of core indicators such as energy consumption and equipment status in testing centers through multi-dimensional monitoring modules. a strong atmosphere where everyone focuses on creates and enjoys quality. Aligned with

the requirements of high-quality development the Company launched a diverse range of

The Company has formed a professional service team composed of sales technical support and quality personnel to efficiently address quality "Quality Month" activities under the theme of "Digital Intelligence Driving Strengthening

issues and technical challenges in customer service at all levels while also conducting training for service personnel. Quality Culture Foundations and Supply Chains Innovating Quality Ecosystems". These activities included

Development specialized training targeted exchanges knowledge competitions skills contests and

benchmark evaluations fostering a strong quality culture where "everyone emphasizes

quality and quality is prioritized everywhere". The Company will consistently adhere to the

action guideline of "relentless pursuit of excellence in quality". By deepening quality

transformation and focusing on delivering products and services that exceed customer

expectations it strives to provide higher-quality offerings for clients and society.Provide services such as product introduction consultation and testing to help

01 Pre-Sales customers understand product features and performance; record customer information and purchase history to establish an information database.

In accordance with the Sales Management Measures Customer Manager Mechanism

Provide logistics services and usage guidelines to ensure timely delivery and Implementation Rules and Customer Feedback Control Procedures the Company has

Mid-Sales

correct product usage by customers. 02 Product Recalls established a customer manager team and a robust product recall mechanism. All depart-

ments are required to immediately halt sales and proactively recall products if they fail to

meet national industry or internal standards or pose safety hazards. Solutions must be

developed for problematic products.Offer after-sales support and services such as returns and exchanges to ensure

03 After-sales a positive customer experience while recording information to verify user identity.

The Company has implemented systematic complaint management policies and transpar-

ent complaint reporting channels. When a complaint is received it must be escalated to the

Customer Complaint

After service completion conduct follow-up visits with customers and collect responsible department within two hours. The responsible department conducts investiga-Handling

Customer Follow-up feedback on their usage experience. By understanding customer satisfaction 04 tions verifications and feedback while the Quality Assurance Department oversees the and suggestions we continuously improve and enhance service quality. process.

71 72Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

The Company follows the Customer Feedback Control Procedures categorizing complaints into major general and minor based on their impact.Personnel involved in complaint handling are required to provide appropriate response plans within specified timeframes. Among these all

complaint incidents and service quality are incorporated into performance evaluations. Advancing Innovation for Re-

Customer complaint information is received through designated channels upon customer feedback then forwarded to responsible departments search for Long-Term Impact

for root cause analysis action planning and prevention of similar complaints until resolution and customer satisfaction are achieved.Minmetals New Energy consistently prioritizes technological innovation as its core driver establishing a sustainable R&D system and deepening

its expertise in lithium battery materials. Numerous scientific achievements reaches internationally advanced and leading levels with substantial

Minmetals New Energy Launched Quality Improvement Campaign with the Theme "Digital

Case outcomes in standard-setting continuously reinforcing its industry leadership.Intelligence-Driven Strengthening Foundations and Chains Innovating Quality Ecosystems"

In September 2025 Minmetals New Energy aligned with the Outline for Building a Quality Nation to launch a series of quality enhance-

ment activities under the theme "Digital Intelligence-Driven Strengthening Foundations and Chains Innovating Quality Ecosystems"

driving quality management improvements and efficiency gains.Innovation-Driven Governance

To further enhance R&D efficiency and stimulate employee innovation the Company has formulated internal management regulations such as

the Detailed Rules for Intellectual Property Management Detailed Rules for Scientific Achievement Management Detailed Rules for Special Science and

Technology Fund Management and Science and Technology Management Measures in accordance with laws and regulations including the Patent

Cooperation Treaty the Patent Law of the People's Republic of China the Implementing Regulations of the Patent Law of the People's Republic of

China the Hunan Provincial Science and Technology Plan Project Management Measures and the Hunan Provincial Science and Technology Progress

Regulations. These measures continuously standardize innovation and R&D management.The Company has established and continuously improved a comprehensive multi-level and systematic sustainable R&D system. It has

implemented a "Research Center + Research Institute + Project Team" scientific framework strengthens sector-based management of R&D

projects clarifies primary responsibilities and adopts a "de-administrative" approach by eliminating departmental structures in favor of

project-based sector management. This enhances organizational operation and R&D management efficiency.Data Security and Privacy Protection

Minmetals New Energy established the Hunan Provincial R&D

The Company strictly complies with relevant laws and regulations including the Data Security Lawof the People's Republic of China the Personal Center for Cathode Materials and Recycling Technologies of New

Information Protection Law of the People's Republicof China and the Cybersecurity Law of the People's Republic of China and carries out its Energy Batteries the Changsha Pilot Platform for Industrializa- In 2025

operationsaccordingly in accordance with its internal policies such as the Measures for the Administration ofNetwork and Information Security tion of Lithium-ion Battery Cathode Material Technologies and Through methods such as joint research and

and the Measures for the Administration of Information SystemData. The Company has established a Cybersecurity and Informatization Commit- completed the registration of the "Changsha Low-Carbon Green development and talent cultivation a total of

tee chaired by theChairman of the Board which is responsible for implementing regulatory requirements reviewingdevelopment plans and New Energy Materials Technology Innovation Center". Through

institutional standards coordinating major incidents and overseeingoverall work advancement. project commissions joint R&D and talent cultivation with 13 in-company engineering master’s and

universities such as the University of Science and Technology of

doctoral students

China University of Science and Technology Beijing and Central

South University the Company has jointly trained 13 in-house

engineering master's and doctoral students and 5 on-the-job 5 In-service Doctoral Students

doctoral candidates.

73 74Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Innovation-Driven Impact Risk and Opportu-

As a core member of the SASAC's "Central Enterprises Solid-State Battery Industry Innovation Consortium" Minmetals New Energy

led a national solid-state battery project under the Ministry of Industry and Information Technology. Its spearheaded scientific

challenge "High-Throughput Solid-State Battery Cathode" was selected as one of the SASAC's "Top Ten Scientific Problems". In 2025 nity Management

one employee was recognized as a leading scientific and technological innovation talent in Hunan Province's Furong Plan and

another was named an Outstanding Young Scientific and Technological Talent in Changsha.Enhancing Incentive Mechanisms

Changyuan New Energy a subsidiary successfully tackled the structural and interfacial stability challenges of medium-high nickel

single-crystal materials under high voltage in the Hunan Province's "Unveiling and Commanding" project "Next-Generation Power

Ternary Cathode Materials" meeting the demands of next-generation power batteries for extended range ultra-fast charging and

long cycle life and passed the acceptance review. Goldshine Energy completed the Hunan Provincial Key R&D Program project "Key The Company places high importance on building a team of scientific research talents and incentivizing technological innovation. It continuously

Technologies for High-Capacity Lithium-Rich Manganese Precursors" developing a lithium-rich manganese-based cathode material improves innovation incentive mechanisms vigorously encourages technological breakthroughs and innovative practices and establishes special

with both high energy density and structural stability which also passed the acceptance review. The Hunan Provincial Key R&D rewards for product innovation product value creation process technology improvements energy conservation and emission reduction

Program project "Development and Demonstration of Low-Cost Short-Process Ternary Precursor Preparation Technology and patents and academic achievements fully unleashing the innovation vitality of all employees.Equipment" participated in by subsidiary Changyuan New Energy was successfully approved for establishment.To strengthen innovation-driven development the Company directs compensation resources toward R&D talents and key innovation projects. It

has introduced the "Product Value Creation Award" to highlight the incentive orientation for transforming innovative outcomes into market value.Additionally the Company has revised the research institute's reward mechanism to stimulate the innovation enthusiasm of young key talents

and bold experimenters establishing a salary distribution mechanism and a long-term incentive and constraint mechanism rigidly linked to

performance evaluations.The Company has established a sustainable innovation management system. In accordance with the Detailed Rules for the Implementation of

Science and Technology Project Management it oversees the entire lifecycle of R&D projects—from application and approval to execution comple-

tion and archiving.Establishment of Technical Standards

The Company has consistently increased R&D investment focusing on technological breakthroughs and standard system development. It

Innovation-Driven Strategy strengthens its foundation with core technologies and leads industry trends through advanced standards fostering standardized and orderly industrial growth. By the end of 2025 the Company had implemented 92 standards. In 2025 alone it participated in drafting and implementing

13 new standards.

The Company is deeply committed to the R&D technology system for lithium battery cathode materials. Guided by the development philosophy

of "mass-producing one generation reserving one generation and pre-researching one generation" it strengthens its technological positioning By the end of 2025 In 2025

in the lithium battery materials sector. Targeted technology reserves and product development are conducted while close attention is paid to Total Number of Standards New Standards Implemented with

advancements in new battery material systems. This ensures the Company seizes opportunities and maintains its industry-leading position in the Implemented by the Company Company Participation in Drafting

development of new energy materials.

9213

75 76Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Case National Nonferrous Metals Standards Work Conference Successfully Held at Minmetals New Energy Minmetals New Energy Led Development of Solid-State Battery Cathode Standard Winning "National Nonfer-

CCaassee rous Metals Standardization Technical Committee Outstanding Technical

On July 9-10 2025 the National Nonferrous Metals Standards Work Conference was successfully held in Changsha. Hosted by the

In November 2025 the National Nonferrous Metals Standardization Technical Committee announced the results of its annual

National Nonferrous Metals Standardization Technical Committee and co-organized by Minmetals New Energy the event aimed to

Outstanding Technical Standard Awards. The industry standard Solid-State Lithium-Ion Battery Cathode Materials developed under the

standardize industry benchmarks and promote high-quality development in the nonferrous metals sector. The conference reviewed

leadership of subsidiary Changyuan New Energy won a third-prize award.

12 draft national and industry standards Among these two standards drafted under the leadership of the Company's subsidiary

Changyuan New Energy successfully passed expert review filling a technical gap in the industry.Case Two Minmetals New Energy Technological Achievements Recognized as Internationally Leading and Advanced

In September 2025 two technological breakthroughs by Minmetals New Energy were assessed by experts as reaching internationally

leading and advanced levels respectively. These innovations strengthen original and pioneering technological supply accelerate the

industrialization of new energy materials and support high-level self-reliance in science and technology. One achievement employs

composite precursor preparation and multi-dimensional synergistic modification technology to overcome material performance

limitations while meeting cross-sector demands. The other develops proprietary preparation processes enabling comprehensive

synergistic control with certain techniques achieving international leadership.Innovation Achievements and Industrialization

The Company adheres to technology-driven high-quality development focusing on core technology breakthroughs and industrial applications in

the new energy materials sector. It continuously advances key processes enhances product performance promotes efficient transformation of

innovation outcomes and steadily improves core competitiveness and market value.Project "Key Technologies and Industrialization of High-Performance Ultra-High Nickel Cathode

Materials and Their Precursors"

It meets the application needs in fields such as passenger vehicles power tools and low-altitude aircraft gaining widespread

recognition from domestic and international customers.

77 78Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Intellectual Property Protection

Project "Key Technologies and Industrialization of High-Capacity Sodium-Ion Battery Cathode

Materials" Building Momentum for Progress

The products exhibit excellent energy density cycling performance and safety with overall technology at an internationally

advanced level.As a "National Intellectual Property Advantage Enterprise" Minmetals New Energy attaches great importance to intellectual property protection.In compliance with the Patent Law of the People's Republic of China the Patent Cooperation Treaty and the Implementing Regulations of the Patent Law

of the People's Republic of China the Company has established internal management measures such as the Detailed Rules for Intellectual Property

Management Detailed Rules for Scientific and Technological Achievement Management and Science and Technology Management Measures to protect

independent innovation achievements promoting technology transfer and commercial value realization and providing intellectual property

support for the Company's sustainable development.Innovation in Traditional Technology Path for Mid-Nickel Materials The Company continuously improves the quality of patent drafting and miningto develop high-quality product patents. It has also adopted

industry-standard patent search systems to strengthen internal patent search and analysis capabilities as well as patent database development.The product performance has been comprehensively upgraded with 6-series high-voltage products successfully integrated into the The Company prioritizes the development of high-value product patents accumulating numerous key technologies in the cathode materials

supply chains of multiple leading customers. sector and establishing a robust intellectual property system. In 2025 the Company and its subsidiaries Changyuan New Energy and Goldshine

Energy completed the audit of their intellectual property management systems.Innovation-Driven Metrics and Targets By the end of 2025

The Company drives high-quality development through technological innovation jointly creating first-class products and contributing to the 202 valid patents 145 invention patents 44 utility model patents

advancement of the national new energy materials industry. In 2025 guided by the Company's medium-to-long-term strategic plan the formula-

tion of the Company's "15th Five-Year Plan" science and technology special plan was completed.In 2025 58 new domestic patent applications were filed 53 invention patents 5 utility model patents

the Company's R&D investment amounted to RMB 26769 million accounting for 2.87 of operating

revenue;

31 patents were newly granted 29 domestic invention patents 2 utility model patents

subsidiary Goldshine Energy passed the re-evaluation as a national-level

"Little Giant" specialized and sophisticated enterprise.

79 80Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Collaborative Synergy and

Shared Value Across the Chain

Access Management Evaluation Review

Minmetals New Energy strictly complies with national laws regulations and central SOE management requirements. Supported by digital The supplier qualification A rigorous quality manage- Contract assessments Unannounced inspections

platforms we have established a full-lifecycle supplier management system adhering to the principles of selecting the best and removing the process is conducted on ment process is (process evaluation and and annual audits are

inferior through dynamic control. We deeply integrate ESG concepts into the entire procurement process striving to build a secure stable China Minmetals Supply implemented covering completion evaluation) performed irregularly for

efficient controllable and responsibility-sharing sustainable supply chain thereby fostering collaborative win-win outcomes across the upstream Chain Platform reviewing product introduction and and annual evaluations key raw material suppliers

and downstream industrial chain. business licenses credit other stages with random are conducted on the to prevent unauthorized

status qualification unannounced inspections supply chain management changes and prohibit the

certificates system to achieve comprehensive platform. Annual scores use of materials from

Supply Chain Governance certifications etc. while control over supplier are aggregated to high-risk regions helping evaluating metrics such as products production and determine supplier suppliers identify supply

scale and financial status. sourcing. ratings restricting or chain risks.Only qualified suppliers can prohibiting the use of

participate in bidding unqualified or blacklisted

The Company bases its operations on laws and regulations such as the Bidding and Tendering Law of the People's Republic of China and the Guidance quotation and other suppliers.on Standardizing Procurement Management in Central Enterprises. We have formulated internal management systems including the Supply Chain business activities.Management Regulations Procurement Management Regulations Supplier Management Measures Procurement Method Management Measures and

Procurement Supervision and Management Measures. These measures enhance the supplier management framework clearly define management

responsibilities at all levels and designate the Supply Chain Management Department as the unified oversight body for suppliers. Through

dedicated personnel management and meticulous control we have established an efficient collaborative and professionally segmented

governance system. Supply Chain Impact Risk and Opportunity

The Company leverages responsible procurement as a key initiative collaborating with suppliers to build a sustainable supply chain and fully

integrating ESG concepts into the entire procurement process. In 2025 the Company established a responsible procurement due diligence Management

management framework formulated and implemented the Minmetals New Energy Sustainable Development Evaluation Measures fully embedding

ESG principles such as human rights protection environmental conservation and business ethics into the supplier screening and evaluation

system. It explicitly prohibits child labor and forced labor strictly controls pollution and carbon emissions eliminates commercial corruption and Supplier Management

conflict minerals and establishes anonymous reporting and anti-retaliation mechanisms to strengthen the integrity and compliance baseline of

the supply chain. By implementing the Minmetals New Energy Sustainable Development Evaluation Form the Company conducts multi-dimensional

audits and assessments of suppliers in areas such as human rights environment safety ethics greenhouse gas management and biodiversity. The Company adheres to procurement principles of openness fairness impartiality good faith and scientific optimization. It has established the

This enables a thorough understanding of suppliers' ESG performance and drives continuous improvement while consistently reinforcing carbon Supplier Code of Conduct and Sustainable Procurement Policy for Supply Chains issued the Integrity Proposal to Partners and continuously strength-

management requirements across the supply chain to promote collaborative sustainability enhancement upstream and downstream. ened supplier qualification and performance evaluation. Sustainable development capabilities are incorporated as core criteria in supplier

selection.When procuring materials projects and services the Company and its subsidiaries primarily select suppliers from the qualified supplier pool

Supply Chain Strategy through the China Minmetals Supply Chain Management Platform. Leveraging the platform's digital capabilities it achieves full lifecycle manage-

ment covering sourcing qualification utilization evaluation and exit thereby continuously enhancing supply chain governance efficiency and

management transparency.The Company treats SMEs equally maintains sound cooperative relations with them on an ongoing basis strictly

abides by contractual terms and has no record of overdue payments.The Company adheres to the core principles of "unified management dynamic assessment and selective retention" supported by a comprehen-

sive supply chain risk management system. This enables full-cycle control from supplier onboarding to exit ensuring stable supply chain 01 Supplier Sourcing

operations and mitigating procurement risks. For supplier quality management a robust evaluation system is established featuring dynamic

assessments and tiered classifications complemented by a "blacklist" management mechanism to strictly control material supply quality at the

source. Adhering to the principles of openness fairness and impartiality we employ a combination of open sourcing and

targeted sourcing. Under the premise of ensuring the economy safety and timeliness of procurement activities

we effectively drive cost reduction and efficiency improvement by introducing full market competition. Through

comprehensive evaluation of suppliers' creditworthiness and performance capabilities we strengthen the risk

prevention and control line of the supply chain ensuring all procurement activities are implemented in a standard-

ized efficient and orderly manner.

81 82Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

02 Supplier Qualification

We establish a "smart evaluation + manual assistance" mechanism which includes preliminary review (qualitative

assessment of basic conditions and disqualification items) and detailed review (quantitative scoring). Suppliers

must meet requirements such as legal entity status good reputation and environmental and safety qualifications. Green Priority Integrity & Compliance

After platform OCR recognition and third-party data intelligent pre-review the procurement department conducts

comprehensive evaluations on qualifications production capacity quality & environmental management systems In sourcing and qualification processes environmen- Require 100% of key suppliers to sign the Integrity

and green development. tal credentials safety production records and green Commitment Letter. Practices like bid-rigging and

technology capabilities are prioritized as core commercial bribery are added to a "blacklist"

evaluation criteria. Suppliers with government-certi- triggering minimum three-year bans with public

fied green/low-carbon products/services receive disclosure to strengthen anti-corruption monitoring.incentives during vetting and assessment with

03 Supplier Evaluation priority given under equal conditions.

A dual-track mechanism of "dynamic assessment + annual evaluation" is implemented: Daily issues are promptly

recorded in the platform's "Supplier Issue Log"; post-contract execution quantitative evaluations cover business

performance and comprehensive capabilities; compliance reviews are conducted for inactive suppliers. Annual

results serve as the core basis for tiered classification strengthening process documentation and accountability Dynamic Empowerment Digital Enabling

tracing.Conduct routine supervision and compliance Leverage end-to-end digital management to ensure

reviews via supply chain platforms incorporating traceable responsible procurement and preventable

green performance and compliance records into risks. Regularly verify suppliers' social responsibility

dynamic evaluations. Provide improvement fulfillment to substantively advance green transfor-

04 Supplier Tiered Management guidance to underperforming suppliers to drive mation and sustainable development in supply

continuous enhancement. chains.Annual performance is categorized into four tiers for management. Suppliers rated A (≥90 points) B (80–89 points)

and C (65–79 points) are qualified while D (<65 points) are unqualified. Grade A suppliers are prioritized for

strategic partnerships; Grade B for deepened collaboration; Grade C for development and improvement; Grade D

for suspended cooperation until compliance is verified. A red-yellow card warning system is implemented to

dynamically adjust collaboration strategies for suppliers with quality issues.Supply Chain Risk Control

05 Supplier Review

The Company prioritizes ensuring supply chain security stability compliance and sustainability as its core objectives. It has established a

comprehensive lifecycle supply chain risk management system implementing a dual-track mechanism of "daily dynamic monitoring + annual

Priority is given to procuring green and low-carbon products with incentives provided to suppliers with environ- comprehensive assessment". This approach systematically identifies and evaluates risks from dual dimensions—likelihood of occurrence and

mental certifications. Daily supervision and ad-hoc on-site audits are conducted through the platform focusing on impact severity—while deeply embedding ESG risks into management processes. Key focus areas include ethical integrity risks (commercial

ESG risks such as environmental compliance labor rights and business ethics. Suppliers involved in serious bribery bid-rigging etc.) HSE and compliance risks (environmental violations workplace safety hazards and labor rights) supply stability risks

violations such as bid-rigging and commercial bribery are added to a "blacklist". (production capacity fluctuations delivery delays) quality and green risks (product defects inadequate low-carbon capabilities). Leveraging

digital platforms the Company enables risk early warning rectification tracking and closed-loop management to ensure overall supply chain risk

controllability and a solid foundation for sustainable development.The Company places high importance on responsible procurement deeply integrating ESG requirements throughout the entire procurement

lifecycle. In accordance with national regulations and industry standards the Supplier Management Measures have been improved clearly defining

suppliers' responsibilities in areas such as environmental protection workplace safety and business ethics.

83 84Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Risk Response and Implementation Outcomes:

"Daily Dynamic Monitoring + Annual Comprehensive Assessment" Dual-Track Risk Evaluation Mechanism: Supply Chain Safety Management

Daily operations involve real-time tracking of supplier qualification validity contract performance issues and ESG performance via

the platform with automated alerts triggered as needed. Annual assessments systematically evaluate risks based on the "Supplier

The Company has deepened its centralized procurement efforts. By comprehensively analyzing procurement data from the

Issue Log" and "Quantitative Evaluation Results Table" focusing on four key dimensions: ethical integrity HSE compliance supply

previous year including statistical categorization of material codes analysis of expenditure proportions and evaluation of

stability and green/low-carbon performance. Risk levels are quantified and incorporated into tiered management criteria.supplier concentration it has identified high-frequency high-value and highly standardized categories of materials and services.Based on this the Company has set annual centralized procurement management targets based on projected business growth

through 2025. It has also preliminarily established a Corporate Centralized Procurement Catalog covering bulk raw materials (e.g.lithium carbonate nickel sulfate) general equipment spare parts laboratory consumables engineering services and consulting

services laying the groundwork for large-scale procurement.Tiered For Grade A/B suppliers strategic partnerships and green incentives are strengthened; Grade C suppliers The Company focuses on strengthening centralized procurement management and process monitoring. It clearly stipulates that

Targeted receive targeted corrective guidance with time-bound review and closure; Grade D or red-flagged suppliers projects included in the centralized procurement catalog must be uniformly organized and implemented by the corporate

Measures face suspended cooperation until rectification is verified and approved. procurement department. Procurement plan management has been enhanced to improve transparency and compliance.For categories within the Centralized Procurement Catalog the Company actively promotes procurement models such as "frame-

work agreements" and "strategic partnerships". For standardized materials with high universality annual framework tendering

is adopted to secure high-quality suppliers and favorable prices. For critical bulk raw materials the Company actively explores

establishing long-term strategic partnerships with leading industry suppliers to ensure supply stability and cost advantages.The Company has refined systems such as the Warehousing and Logistics Management Measures and External Warehousing Risk

Management Measures to strengthen the management of external logistics suppliers ensuring product delivery and the safety of

The procurement process is made transparent through an information platform with sustainable clauses

goods in transit.Rigid solidified in contracts. 100% of key suppliers have signed the Integrity Commitment . Bid-rigging

Integrity collusion commercial bribery and similar violations result in immediate blacklisting and disqualification

Constraints upon confirmation. High-risk suppliers are subject to rectification within a set timeframe or contract

termination ensuring the entire supply chain aligns with the Company's sustainability commitments.Supply Chain Disruption Response

During procurement execution priority is given to clean energy recycled materials and eco-friendly packag-

Green

ing promoting green product design and low-carbon logistics collaboration. Environmental qualifications The Company's operations center leads efforts to prevent supply chain disruptions. This includes expanding sourcing for key raw Synergy

Empower- and low-carbon certifications are incorporated as core criteria for supplier access and evaluation with material suppliers to mitigate single-supplier risks implementing safety stock alerts for critical materials under the Safety Invento-

ment incentives for priority cooperation extended to top-performing green suppliers. ry Management System and conducting compliant emergency procurement as per the Procurement Management Regulations. It

also involves promptly activating alternative suppliers and coordinating raw material procurement storage transportation and

sales to ensure stable production and operations.For systemic risks identified in assessments (e.g. delayed supplier qualification updates) the platform's

intelligent pre-review rules are optimized and third-party data verification frequency is increased. The

Continuous rectification closure rate is integrated into procurement department performance metrics to drive manage-

Improve-

ment ment iteration. In 2025 the supply chain platform dynamically monitored over 700 suppliers achieving

Mechanism

a 100% rectification completion rate with no major supply disruptions or ESG violations continuously

enhancing supply chain resilience and sustainable development capabilities.

85 86Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Responsible Minerals Public Welfare Warming Hearts

The Company upholds responsible sourcing as a core principle systematically advancing compliance management and social responsibility

practices in the mineral supply chain and earnestly fulfilling its commitments to human rights environmental protection and community Enriching Society

development. In accordance with the Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains the OECD Due Diligence Guidance for

Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and the EU Batteries and Waste Batteries Regulation the Company

has formulated and issued the Responsible Mineral Supply Chain Management Policy developed the Mineral Supply Chain Due Diligence Management Minmetals New Energy has always adhered to its aspiration for public welfare strictly improved its donation management system in compliance

Manual and the Conflict-Affected and High-Risk Areas Identification Procedure and established a grievance mechanism to build a comprehensive due with laws and regulations and actively engaged in public welfare initiatives such as education environmental protection and poverty alleviation.diligence management system. It has widely carried out volunteer services and charitable activities. Demonstrating responsibility through actions and spread warmth through

deeds the Company keeps promoting the spirit of dedication fulfilling its social responsibilities as a central enterprise with sincerity and action

To effectively mitigate social and environmental risks resolutely prevent severe human rights violations and avoid potential contributions to contributing strength to harmonious social development.armed conflict the Company has comprehensively reviewed and updated the supply chain maps for nickel cobalt manganese and lithium

minerals. Leveraging existing systems it has identified conflict-affected and high-risk areas within the supply chain. By utilizing third-party profes- The Company strictly follows the Law of the People's Republic of China on

sional assessments and qualitative supply chain data analysis the Company has evaluated warning signals and developed targeted risk mitigation Public Welfare and Donations for Public Welfare and formulates the Minmetals New Energy

strategies. Volunteer Activities Materials (Hunan) Co. Ltd. Donation Management Measures. It actively supports the development of public welfare causes such as social

The Company will continue to collaborate with upstream and downstream partners and professional institutions to jointly advocate for responsi- Implementation education and ecological environmental protection conducting targeted ble mineral practices. Through supplier capacity-building initiatives and sharing management expertise the Company aims to enhance responsi- poverty alleviation paired assistance hardship relief and various

bility awareness across the entire supply chain. The Company will continue to deepen the development of its responsible minerals management charitable and public welfare activities. The Company widely conducts

system expand the scope of due diligence management enhance supply chain transparency and resilienceimplement the concept of sustain- volunteer services in areas such as environmental protection and blood

able development and contribute to the responsible development of the global green energy industry through concrete actions. donation. In 2025 the Company organized a total of 7 volunteer

activities.In 2025

the Company organized a total of

Supply Chain Metrics The Company focuses on the core demands of supply chain security stability and compliance control improving quantitative assessment 7 volunteer activities

indicators strengthening risk anticipation and precise prevention across

and Targets the entire chain and ensuring efficient collaboration and compliance within the supply chain. In 2025 the Company had 728 suppliers with

the number of supply chain risk incidents at 14.Case Minmetals New Energy Launched a Series of Volunteer Service Activities to Learn from Lei Feng

In March 2025 to promote the spirit of Lei Feng in the new era

Minmetals New Energy's Party labor union and youth league

In 2025 organizations at all levels carried out diverse volunteer service

activities under the theme "Inheriting the Spirit of Lei Feng

The Company had Key suppliers have signed the Integrity Commitment Gathering Volunteer Strength" demonstrating the responsibili-

ty and commitment of a central state-owned enterprise. The

728 100 activities focused on three key areas: joint construction and suppliers % collaboration public welfare services and green environmen-

tal protection. Employees and young volunteers participated in

initiatives such as school safety escort inter-branch visits

community services environmental cleanup and tree planting.A total of 7 events were held with 143 employee participations

and nearly 500 community members served. The initiative not

only polished the corporate social responsibility brand but also

allowed employees to hone their character through practice.Moving forward the Company will continue to explore the

"Party-building + volunteering" and "professionalism + public

welfare" models ensuring that the spirit of Lei Feng shines

brightly in the new era.

87 88Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility

Advancing Rural Revitalization Case Minmetals New Energy Partners with China Salt Lake for Consumption Assistance Initiative

In September 2025 Minmetals New Energy collaborated with China Salt Lake to launch a consumption assistance campaign support-

ing industrial development in paired assistance regions. Qilian County in Haibei Prefecture Qinghai Province is Minmetals' designated

With unwavering commitment to our mission and boundless compassion we contribute to assistance county. The Company organized a centralized exhibition and sales event at its high-tech base cafeteria featuring local

rural revitalization. The Company remains steadfast in fulfilling its political and social responsi- green organic products such as yak jerky black wolfberries and gray beans which attracted active purchases from employees.bilities as a state-owned enterprise dedicating itself to rural revitalization with a strong sense In 2025

of duty and mission. We have established a comprehensive support responsibility system led

Total Investment in Consumption

by top management involving multi-department collaboration and full-process supervision. In Assistance Funds

strict alignment with the Central Party Committee's directives we employ diverse measures

such as field research consumption-based assistance and employment empowerment to

precisely address support needs. With dedication and action we aid the development of RMB 38000

supported regions and increase residents' income fulfilling our social responsibilities and

injecting state-owned enterprise strength into advancing rural revitalization and painting a Employment Arrangement for

picture of common prosperity. People in the Assisted Counties

To thoroughly implement the guiding principles of the 20th National Congress of the CPC and 2 persons

its subsequent plenary sessions as well as the Central Rural Work Conference and to fulfill

the directives of the Central Committee and the State Council regarding normalized and

targeted assistance along with the "Dual Linkage" assistance tasks assigned by the leading

Party members group of the Group Corporation the Company has consistently intensified its

efforts in consumption-driven assistance. The Company actively assists in expanding sales

channels for specialty agricultural products from seven designated assisted counties

including Huayuan County thereby effectively driving increased sales and income for local

residents. Concurrently the Company has deepened its engagement and coordination

proactively offering suitable job positions to residents of the assisted counties to help alleviate

employment challenges. In 2025 the Company invested a total of RMB 338100 in consump-

tion assistance and facilitated the employment of two individuals from the assisted counties.Case Minmetals New Energy Conducts Rural Revitalization Research in Huayuan County

On October 21-22 2025 Minmetals New Energy conducted a special research trip on rural revitalization in Huayuan County Hunan

Province. The team visited households in Shibadong Village and Zhangpima Village of Longtan Town held discussions with local

cadres and residents and gained insights into paired assistance programs living environment improvement and specialty industry

cultivation. They also inspected the Shibadong Garment Factory and Jiwei Rice Processing Base providing guidance on production

operations cost reduction efficiency improvement and brand enhancement.

89 90Upholding Integrity and Driving

Innovation and Straightening

the Foundation for Shared Pros-

perity Through Governance

Minmetals New Energy consistently upholds the Party's comprehensive leadership prioritizing political develop-

ment as the guiding principle ideological development as the soul organizational development as the foundation

institutional development as the basis conduct development as the driving force and disciplinary development as

the safeguard. The Company continuously improves its modern corporate governance system strengthens compli-

ance risk control and integrity building adheres to business ethics and maintains open communication channels

with stakeholders driving high-quality development through high-quality Party building.Response to the United Nations Sustainable Development Goals (SDGs)

91 92Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Party Building as the Guiding Political Development Steering the Course

Force: Uniting and Empowering

The Company's Party organization anchors itself to the core requirements of political development reinforcing foundational growth through

three-dimensional efforts: theoretical fortification Party spirit tempering and leadership team building.Theoretical Empowerment

The Party Committee's Effective Directional Oversight

The Company solidly advances the study and discussion sessions of the Party Committee's Theoretical Study Center Group

guiding and motivating Party organizations and Party members and officials at all levels to profoundly grasp the decisive

significance of the "Two Establishments" effectively strengthen the "Four Consciousnesses" consolidate the "Four Confidenc-

01 Establish and Dynamically Optimize the Pre-research List es" and uphold the "Two Safeguards". We strictly implemented the "First Agenda" system promptly following up and studying

Fully establish the Party Committee's pre-research and discussion list for major business management matters 30 items of General Secretary Xi Jinping's series of important instructions remarks and speeches ensuring that the decisions

and implement a dynamic management mechanism. Regularly evaluate and optimize the list based on policy and arrangements of the CPC Central Committee and the work requirements of the Party Group of China Minmetals are fully

requirements Company realities and development stages to ensure its accuracy and timeliness. Through implemented and take root in the Company. In 2025 a total of 11 centralized study sessions were organized by the Party

list-based management further clarify the specific scope and execution pathways of the Party Committee's Committee's Theoretical Study Center Group including one thematic reading session one research findings exchange meeting

decision-making review and oversight authority in major decision-making matters. and 20 "First Agenda" learning sessions.Party Spirit Cultivation

By strengthening theoretical empowerment enforcing rigorous political life and enriching practical platforms we have continu-

ously enhanced the Party spirit of members and officials. The Party Committee Center Group spearheaded thematic study

sessions on Party regulations such as the Party Constitution Guidelines for Political Life Within the Party Under the New Circumstanc-

02 Extend the "Three Lists and One Process" System Downward es and Regulations on Disciplinary Actions of the Communist Party of China solidifying ideological foundations through in-depth study and reflection. High-quality democratic life meetings were convened focusing on four key areas to identify prominent

Conduct systematic revisions and optimizations to the "Company Decision-Making Matters and Process List" issues. Through item-by-item review criticism and self-criticism—along with case analysis and lessons learned—a total of nine

clarifying the classification criteria and authority scope for various decision-making matters. Ensure the list and issues were identified and 11 targeted rectification measures were formulated. This created a closed-loop system of "inspec-

processes are targeted actionable and aligned with business development. Actively promote subsidiaries to tion rectification and governance" continuously improving the leadership team's political judgment comprehension and

continuously improve the "three lists and one process"-centered management and governance system. This execution capabilities. Aligned with major milestones such as the 104th anniversary of the Party's founding and the 76th Nation-

system meticulously delineates and standardizes the Party Committee's authority boundaries performance al Day we organized patriotic education activities including the "Seven Ones" thematic campaign and flag-raising ceremonies.procedures and working methods at each stage of corporate governance ensuring coordinated operation and

effective checks-and-balances of governance mechanisms.Strengthening Party Building

In light of the Company's shareholding structure and mixed-ownership characteristics the Company firmly adheres to the

fundamental principle of "Two Adherences". It has established and refined a modern corporate governance system character-

ized by "Party Committee oversight and direction-setting board of directors strategic decision-making and Executive Manage-

ment operational management". Within this framework the board of directors is responsible for "setting strategy making

decisions and managing risks"; the Party Committee is tasked with "charting the course overseeing the overall situation and

03 Smoother Synergy in Governance Entities' Responsibilities ensuring implementation"; and the executive management team focuses on "planning operations executing tasks and

strengthening management." The Company has advanced these efforts in an integrated manner and achieved the "Five 100%

By revising and refining the Company's articles of association the duties authorities and deliberation rules of

Targets" under unified standards: 100% inclusion of Party building requirements in the Articles of Association of all affiliated

governance entities such as the Party Committee Board of Directors and executive management are clearly

defined. This institutionalizes the embodiment of the Party Committee in major decision-making processes entities; 100% of Party organization secretaries concurrently serving as Chairman (or Executive Director); 100% establish-

fundamentally strengthening the Party's leadership within the governance framework. ment of deliberation and decision-making protocols for Party organizations; 100% implementation of the procedure

requiring preliminary deliberation by Party organizations before major decisions are submitted to the board or management;

100% guarantee of funding for Party organization activities.

93 94Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Ideological Development Uniting Hearts and Targeted Efforts to Strengthen Grassroots Ideological Guidance

Forging Spirit We guided grassroots Party organizations to integrate theoretical studycurrent situation and tasks education

ideological education Party discipline study and Party history education with their operational realities deeply

aligning these initiatives with core tasks like production project breakthrough and reform for synergistic advance-

The Company adheres to ideological development as a key component of Party building focusing on the core of Party member education and ment. Conducting employee sentiment surveys via questionnaires forums and one-on-one exchanges we

ideological guidance. Multiple measures are taken to solidify the ideological foundation and foster consensus for development. comprehensively assessed staff perspectives and compiled the "2025 Employee Sentiment Research Report". The

Party Committee particularly studied the findings and deployed the next ideological work to ensure alignment

between employee mindset and corporate development.Strategic Planning for a Systematic Learning Framework

The Company places high importance on Party member education and training. Aligning with the Company's

development realities and the characteristics of its Party members it meticulously formulated and issued the

"2025 Annual Party Member Education and Training Plan". This plan outlines learning objectives content Deep Study and Implementation of the Spirit of the Fourth Plenary

Session of the 20th CPC Central Committee

methods and safeguards establishing a learning mechanism that ensures "annual planning monthly arrange-

ments and phased priorities". Each month key work plans are issued to systematically and regularly arrange the

study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Through- The Party Committee's theoretical study center group held concentrated discussions on the plenary session's

spirit while the Party Committee Conference formulated an implementation plan. Leveraging platforms like

out the year 18 thematic learning sessions were organized covering Xi Jinping's Economic Thought Xi Jinping's "SASAC e-Learning" and "Minmetals e-Learning" we organized self-study for all staff. We expanded online resourc-

Ecological Civilization Thought Xi Jinping's Important Thoughts on Party Building and key discussions on

state-owned enterprise reform and Party construction. This achieved comprehensive and thorough learning of the es by publishing 6 installments of plenary session materials on our WeChat platform and installing 6 promotion-

Party's innovative theories. al boards at headquarters and subsidiaries enhancing the timeliness accessibility and reach of theoretical

education. We prioritize publicity and education as the key to implementing the spirit of the plenary session

enhancing overall planning innovating methods expanding communication channels and improving the quality

Diverse Platforms to Enhance Learning Effectiveness of outreach. Members of the Company's leadership conducted eight lecture sessions within their respective Party

branches and liaison branches. Party organization secretaries of subsidiaries and research institutes tailored

lecture activities to their specific contexts ensuring the plenary session's spirit permeates every level of the

Guided by the principle of "stratified and targeted education" the Company has established a full-cycle learning organization takes root at the grassroots and is embraced by all employees. This has fostered an atmosphere

model featuring "annual off-site training biannual coaching sessions quarterly discussion exchanges and month- where everyone pays attention understands and practices the spirit.ly theoretical instruction". This approach drives theoretical learning from foundational to advanced levels

ensuring depth and practicality. Focusing on enhancing grassroots Party building capabilities we specially

organize thematic training sessions for Party branch secretaries and Party affairs personnel. The program features

a systematic curriculum spanning 40 class hours covering over 70 Party affairs cadres at all levels to precise-

ly elevate their professional competencies. We expand online learning channels by launching 24 installments of

study columns such as "Central Eight-Point Regulation Spirit Education" and "Studying and Implementing the Spirit

of the Fourth Plenary Session of the 20th CPC Central Committee" on our WeChat public account. Simultaneously

we established the online "Lithium Vision Academy" platform offering 15 educational courses with over

5000 participations. To fully activate grassroots advocacy we formed a diversified lecture team comprising

leaders experts role models and frontline employees delivering themed lectures like "Minmetals New Energy

Youth Forum" and "Perspectives on Company Development". Company leaders led 16 Party lectures creating

a multi-dimensional lecture framework where "experts teach theory leaders deliver Party lectures functional

departments explain policies role models share deeds and employees discuss changes"—making theoretical

learning more relatable and impactful.

95 96Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Case Minmetals New Energy Conducted Lecture on the Spirit of the Fourth Plenary Session of the 20th CPC Central Committee Organizational Development Strengthening

On December 12 2025 Minmetals New Energy held a lecture session to study and implement the spirit of the Fourth Plenary Session Foundations

of the 20th CPC Central Committee. The event aimed to embed the plenary session's spirit within the Company unify the thinking of

all employees and consolidate efforts to drive high-quality development. The Company has established Party affairs bodies in accordance with relevant regulations

including the Party Committee Office Party Organization Department Party and Mass Work

Department Party Publicity Department and Discipline Inspection Department. Full-time Party In 2025

affairs staff have been adequately recruited and trained with clearly defined responsibilities The Company currently has

and improved working mechanisms. At the same time the Company has established a funding

guarantee mechanism for Party building incorporating sufficient Party building funds (includ-

ing Party dues and Party organization operating funds) into the Company's annual budget as a 305 Party members

dedicated item under standardized management. This provides a solid organizational and

financial foundation for Party organizations to carry out their work in a standardized manner

and effectively fulfill their roles. The Company currently has 305 Party members. A Party Committee

standardized Party organization structure has been established comprising a three-tier

framework of “Party Committee – General Party Branch – Party Branch” achieving full coverage“horizontally across all departments and business units and vertically throughout all levels ofthe organization.” This ensures that Party organizations and their activities are effectively

embedded in the Company's governance structure. The Company continuously strengthens its

General Party Branch

cadre development. Comprehensive assessments have been conducted for 36 cadres

managed by the Party Committee including individual feedback sessions and integrity remind-

ers creating a precise “political profile” for each cadre. Political theory training has been

completed for the leadership team and 77 division-level cadres. The Company regularly

conducts specialized training on political capacity building and integrity warning education Party Branch

encouraging leadership team members to take the lead in fulfilling their responsibilities and

commanding from the front. A strong leadership team drives the development of the broader

workforce continuously transforming organizational strengths into drivers of corporate

growth thereby providing a strong political guarantee for high-quality development.Discipline Enhancement Strict Party Governance

The Company has resolutely implemented the 2026 Work Priorities for Party Building of

China Minmetals Corporation Party Committee and all tasks for comprehensively enforcing

Case Minmetals New Energy Held Education and Warning Conference on Implementing the Central Eight-Point Decision strict Party governance. Throughout the year the Company's Party Committee conducted In 2025

11 special studies and deployments on comprehensively enforcing strict Party The Company's Party Committee's

Annual Special Study and Deployment

On June 16 2025 Minmetals New Energy convened an governance held 2 special consultations and organized a work conference on Party of Full and Rigorous Governance over

education and warning conference to deepen the conduct integrity and anti-corruption to specifically deploy discipline building fully fulfilling the Party Members

implementation of the Central Eight-Point Decision. The the political responsibility of Party governance. The Company has vigorously strengthened

meeting conveyed key directives and warning education its integrity culture in the new era researching and establishing a mechanism for the 11 times

spirit screened the third episode of the warning regularized and long-term implementation of Party discipline education. The study of Party

documentary Always Blow the Charge disclosed typical discipline rules including the Regulations on Disciplinary Action has been incorporated as a

cases of violations and deployed activities for the key element of basic education allowing concentrated education and basic education to Thematic Consultations

Warning Education Month and special rectification work. complement and reinforce each other continuously strengthening the ideological defense

against corruption. The Company has focused on systematic rectification in areas where

power is concentrated resources are abundant and capital is dense rigorously investigat? 2 times

ing and handling violations to create a strong deterrent. The risk checklist for positions in

20 key areas across 7 departments has been dynamically updated. The Company is

actively promoting anti-corruption projects and activities in which Party members make and

fulfill commitments comprehensively fostering a clean and upright political environment.

97 98Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Strengthening the Foundation through Strengthening Enterprises by Ex-

Institutional Development cellence in Governance Making

The Company has thoroughly implemented relevant intra-Party regulations including the Constitution of the Communist Party of China the Steadfast and safe Progress

Guidelines on Inner-Party Political Life in the New Situation the Regulations on the Work of CPC Branches (Trial) and the Regulations on the Education

and Management of Party Members. The Company has newly established or revised a series of Party building institutional documents including

the Working Rules of the Party Committee of Minmetals New Energy Materials (Hunan) Co. Ltd. the Assessment and Evaluation Measures for the Party Minmetals New Energy adheres to standardized operations and scientific decision-making. Building on a sound governance structure clear

Building Responsibility System of Minmetals New Energy Materials (Hunan) Co. Ltd. the Evaluation Measures for the Standardized Development of Party division of responsibilities and efficient operational mechanisms the Company continuously improves its modern enterprise system. It deeply

Branches of Minmetals New Energy Materials (Hunan) Co. Ltd. and the Implementation Measures for the Ideological and Political Work Responsibility integrates compliance governance and scientific decision-making with high-quality development to effectively safeguard the interests of the

System of Minmetals New Energy Materials (Hunan) Co. Ltd. Company and all shareholders providing solid governance assurance for sustainable development.Conduct Development Corporate Governance Structure

The Company consistently upholds the integrated approach of strengthening Party conduct Party discipline and compliance with intra-Party The Company strictly complies with relevant laws and regulations such as the Company Law Securities Law Corporate Governance Guidelines for

regulations while simultaneously promoting integrity discipline enforcement and anti-corruption efforts. The Company ensures that efforts to Listed Companies and Listing Rules for the STAR Market. It has established and continuously improved internal regulations including the Articles of

improve conduct are consistent and enduring. It has launched special rectification initiatives targeting formalistic practices such as excessive and Association Rules of Procedure for Shareholders' Meetings Rules of Procedure for Board Meetings and Measures for the Work of Independent

frequent inspections checks and assessments an overemphasis on documentary evidence and the imposition of excessive requirements at Directors. The Company has built a governance structure centered on shareholders' meetings and the board of directors featuring clear respon-

lower levels. These efforts effectively reduce burdens at the grassroots level. The Company promptly addresses bureaucratic issues including sibilities and effective checks and balances. It defines the duty boundaries and operational mechanisms of each governance body to ensure

failure to take responsibility or take action and delayed reporting or concealment of major incidents. It continues to rigorously combat hedonism efficient corporate governance. In 2025 in accordance with the new Company Law and relevant regulatory requirements the Company steadily

and extravagance deepening rectification of frequently occurring problems such as unauthorized feasting and the improper acceptance or and compliantly abolished the board of supervisors with the board's audit committee assuming the statutory duties previously held by the board

offering of gifts and cash vouchers. Special inspections on business entertainment expenses have been conducted and strict standards have of supervisors.been applied to the declaration and surrender of gifts and cash vouchers by Party officials. Throughout the year no formalism bureaucracy

hedonism and extravagance related to unauthorized feasting or improper acceptance of gifts and cash vouchers occurred and a new and

healthy atmosphere continues to prevail. Standardized Operation of the Board of

Directors

The board of directors serves as the Company's decision-making body for business operations. Major management matters are first reviewed

and discussed by the Party Committee before being decided by the board of directors according to its authority and prescribed procedures. The

Board fulfills its decision-making responsibilities in a standardized manner. All directors are well-versed in relevant laws and regulations

understand their rights obligations and responsibilities as directors. The convening conduct and deliberation procedures of Board and commit-

tee meetings comply with Company regulations and voting procedures are lawful and compliant.

99 100Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

To enhance the comprehensiveness of decision-making supervision

and operational management the Company's Board of Directors has

established four specialized committees: the Strategy Committee In 2025

Board Appointment Process Board Diversity Development Audit Committee Compensation and Evaluation Committee and the Company's specialized

Nomination Committee. committees convened

The Company strictly adheres to the Articles of Association and Aligned with strategic development needs the Company 12 meetings

relevant regulations to standardize the entire process including optimizes board composition by considering diversity across

shareholder nominations candidate qualification review professional backgrounds industry experience age and gender

specialized board committee evaluation election of employee structure. Directors possess expertise in business management

directors by the staff congress board proposals shareholder investment management financial auditing industry research

meeting elections industrial and commercial registration and technological innovation and other fields providing comprehen- Strategy Committee

public disclosure thereby completing the election of the sive professional support for strategic planning risk control and

third-term board of directors. operational decision-making to meet business development and

governance requirements. Responsible for researching and providing recommendations on the Company's long-term development

strategies and major investment decisions as well as advancing legal governance. In 2025 the Strategy Commit-

tee operated effectively fulfilling its duties by reviewing the Company's annual ESG report proposing the dissolu-

tion of the Supervisory Board amending the Articles of Association and conducting research on corporate

development strategies to provide recommendations.By the end of 2025 the Board comprises nine directors including one employee director elected by the staff congress and three independent

directors with the number and composition complying with legal and regulatory standards.Audit Committee

Number of Board Members Number of Board Members Number of Board Members

with Doctoral Degree with Master's Degree with Bachelor's Degree Responsible for reviewing the Company's financial information and disclosures overseeing and evaluating

internal and external audits and internal controls. The Audit Committee consists of three members all of whom

3 4 2 are directors not serving as senior executives. Independent directors constitute the majority with an accounting Person Person Person

professional among them serving as the convener. In 2025 the Company's Audit Committee operated effectively

assuming the relevant functions of the former Supervisory Committee. It diligently fulfilled its responsibilities by

overseeing and reviewing the Company's financial information financial budgets and final accounts appoint-

ment of financial officers reappointment of accounting firms fundraising projects and fund utilization manage-

ment related-party transactions and shareholder dividend return plans. The committee ensured the effective

implementation of the internal audit system and facilitated efficient communication between internal and

external audits.Number of Board Number of Male Number of Female Board

Members Board Members Members

9 Person 7 Person 2 Person

Remuneration and Appraisal Committee

Responsible for establishing appraisal standards and conducting evaluations for directors and senior manage-

ment. It formulates and reviews remuneration policies and plans including decision-making mechanisms

Number of Directors Aged Number of Directors Aged 40 Number of Directors

processes payment arrangements and clawback provisions for directors and senior executives. In 2025 the

40 and Below to 50 (Inclusive) Aged Over 50

Company's Remuneration and Appraisal Committee actively performed its duties by reviewing and providing

1 4 4 recommendations on the remuneration policies appraisal plans and evaluation results for directors supervi- Person Person Person sors and senior management.

101 102Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Nomination Committee Compliance as the Shield and

Upholding Integrity

Tasked with formulating selection criteria and procedures for directors and senior management as well as

screening and reviewing candidates and their qualifications. In 2025 the Company's Nomination Committee

operated effectively fulfilling its responsibilities by reviewing matters such as the election of directors appoint- Minmetals New Energy always adheres to the principle of compliant operations embedding compliance requirements throughout all business

ment of senior management and appointment of securities affairs representatives. It ensured that the appoint- processes. Through standardized governance it builds a robust barrier for steady development demonstrating the responsibility and commit-

ments of directors and senior executives complied with regulatory requirements. ment of a central SOE thereby safeguarding the Company's high-quality and sustainable growth.Management Compensation and Training Internal Control System Development

The Board's Remuneration and Appraisal Committee comprehensively evaluates factors such as Company objectives peer compensation levels In compliance with regulations such as the Basic Standards for Enterprise Internal Control and Supporting Guidelines the Company has formulated

and performance of duties to formulate compensation plans and appraisal matters for directors and senior management providing recommen- and implemented relevant systems including the Internal Control Evaluation Measures Internal Control Audit Management Measures Internal Audit

dations to the Board. Management Regulations Internal Audit Project Management Measures for Accountability in Violation of Operational and Investment Responsibilities

and Management Measures for Rectification of Audit Issues. These systems clarify authority boundaries and checks-and-balances mechanisms to

safeguard against risk thresholds.The compensation structure for directors and senior management holding operational roles includes base salary and

bonuses. Internal Audit Work

Remuneration: The remuneration consists of position coefficient pay position performance pay and allowances.Among them position coefficient pay and allowances are determined based on factors such as job title seniority

education and skills representing relatively fixed work compensation; position performance pay is determined Focus on Key Areas Precise Risk Prevention

based on work performance representing variable wage compensation. Special audits were conducted on executive compensation self-reliance and controllability loss-making

Bonuses: Bonuses are awarded based on annual performance performance evaluations and the Company's enterprise governance and three-category assets effectively addressing management loopholes and

operational status. systematically enhancing the Company's management standards.The remuneration for independent directors follows an independent director allowance system with the

allowance standards determined comprehensively based on the Company's actual situation industry develop-

ment and benchmarking against peer listed companies. Deepen Engineering Audits Strictly Control Project Costs

Cost reviews were performed for major projects such as the second phase of Changyuan New Energy's

80000 ton project and the 60000 ton lithium iron phosphate project achieving a review reduction rate

Non-independent directors who do not hold positions within the Company receive director work allowances in of 2%. The settlement review reduction rate for maintenance and technical renovation projects reached

accordance with the Implementation Rules for the Management of Designated External Directors of China Minmetals 17%. Meanwhile we closely monitored key processes such as project bidding payment settlements and

Corporation. cost settlements to achieve full-chain supervision of engineering construction.The Company has established a sound training mechanism for management duties. It regularly conducts internal training on laws and Strengthen the Closed-Loop Rectification Mechanism to Enhance Governance Efficiency

regulations professional knowledge and regulatory policies. Additionally it actively participates in initial training continuing education and

specialized programs organized by institutions such as the China Association for Public Companies and the Shanghai Stock Exchange. These A full-process closed-loop rectification mechanism was established. In 2025 all audit issues were

efforts continuously enhance the professional competence and duty capabilities of directors and senior management. Meanwhile the Company incorporated into ledger management achieving a 100% on-schedule rectification completion rate.strengthens routine communication with directors and senior management. It provides regular updates on production and operations organizes

industry chain research for directors and facilitates in-depth understanding of industry trends. This ensures they have sufficient working

conditions information support and resource guarantee for efficient duties.

103 104Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

In 2025 the Company completed the reform of its audit institution by establishing a new Audit Center. This ensured the independent setup of the

internal audit department clarified the independence of audit oversight authority and institutionally delineated the boundaries between Compliance Management Deepening

supervision and management responsibilities. By the end of 2025 eight core systems had been formulated including the Internal Audit Manage-

ment Regulations Engineering Cost Audit Management Measures Implementation Measures for Accountability in Irregular Business Investments Internal

Control Evaluation Measures and Audit Issue Rectification Management Measures. These documents define the responsibilities workflows and

operational standards for audit work laying a solid institutional foundation for standardized audit practices. Under the leadership of the Audit Adhering to the philosophy of "respecting the law abiding by rules and creating value" the Company focuses on "key posts and key areas".Committee the Company's Audit Center independently exercises its authority to conduct various inspections on the establishment and Centering on the "four major systems of compliance management namely organization rules operation and support" it adopts the working

implementation of internal controls the authenticity and completeness of financial information and to oversee the rectification and implementa- approach of "task listing institutionalized lists proceduralized systems and digitalized processes". This embeds compliance requirements into all

tion of internal control deficiencies. posts rules procedures and systems improves the effectiveness of the compliance management system forestalls major compliance risks and

steadily advances in-depth and solid compliance management.The Company has established an internal control supervision and inspection mechanism and conducts annual evaluations. By aligning internal

control standards with actual business operations through self-assessment the Company completes a comprehensive review of corporate The Company takes the continuously revised Compliance Management Measures as its top-level guiding document. It has successively issued

governance institutional system construction development strategies investment project construction financial derivatives contract manage- specialized compliance guidelines for key areas such as anti-commercial bribery economic sanctions and export controls. These are further

ment procurement and sales management information management fund management and financial management. This drives continuous extended into practical documents like the Contract Review Compliance Guidelines and Compliance Guidelines for Payments to Small and

improvement of the internal control system enhances core momentum improves core competitiveness and solidifies the foundation for Medium-sized Enterprises forming a practical "1+N" institutional framework.high-quality development.The Company has established a governance structure where the Party Committee Board of Directors and management perform their respective

duties collaboratively and efficiently continuously improving the compliance management system and strengthening the foundation for lawful

Corporate Governance Tax Management and compliant operations. All functional departments and business centers/departments earnestly fulfill their primary responsibilities in compli-

ance management establishing a vertically integrated and collaboratively coordinated compliance management framework.Institutional System Fun?d? ?M?a?n?a?gement

Party Committee Board of Directors

Development Strategy Information Management

Self-assessment of Aligning Strengthens top-level design and overarching Reviews and approves key documents including

Internal Control Standards guidance to ensure the implementation of compli- compliance management policies and implementa-

with Actual Business ance initiatives tion plans and deliberates on major compliance

Operations

Investment Project Procurement and matters

Construction Sales Management

Financial Derivatives Invoice and Contract Management Executive Management Compliance Management System General Counsel Construction Team (Chief Compliance Officer)

Leads the formulation of compli- Oversees research and Participates in major business

Drive ance management system decision-making on major compli- decisions and provides compli-

Company's development plans and organizes ance matters in building the ance opinions guides the compli-

Sustainability responses to significant compli- Company’s compliance manage- ance management department in

ance risk incidents ment system development. carrying out compliance manage-

ment tasks oversees the

Keep Refining Internal Control Strengthen the Foundation for High-Quality Development implementation of compliance

requirements and leads the

handling of major legal dispute

Enhance Core Momentum Improve Core Competitiveness

cases.The Company treats compliance review as a critical lever to continuously deepen legal and compliance risk control. In 2025 the Company

achieved a 100% legal review rate for regulations economic contracts power-of-attorney documents and important decisions with proposed

compliance recommendations being highly adopted. Compliance review checkpoints are embedded into workflows with compliance personnel

deeply involved in all stages of large-scale investment projects. The Company resolutely implements the "legal consultation before decision-mak-

ing no decision-making if illegal" mechanism striving to build a comprehensive compliance risk prevention chain.

105 106Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Tax Management

The Company comprehensively identifies compliance risk points in its management and operational activities completes the

preparation of the "Three Lists" with high quality and implements them rigorously.The Company complies with national tax laws and regulations as well as China Minmetals' unified tax management system. It has formulated tax

Risk Identification List management rules such as the Tax Management Measures and Invoice Management System tailored to its business characteristics. The tax depart-

ment collaborates with finance legal and business departments to ensure tax compliance aligns with business development.The Company systematically organizes external laws and regulations national policies industry standards

and internal rules and regulations. It aggregates clause responsibilities that violate compliance obligations

categorizes risk points into high medium and low levels based on impact and forms a "Risk Identification

List". Tax Compliance Management

Role-Based Compliance Responsibility List

Routine Filing Tax Incentives Cross-Border Taxation

Key personnel are organized to define specific responsibilities based on their roles incorporating require-

ments from business and supervisory departments. Compliance reviews management and actions for each

Strictly implement declaration and Actively apply for tax preferential For import/export or international

responsibility are reflected resulting in a "Role-Based Compliance Responsibility List".payment processes for VAT corporate policies related to new energy and operations focus on customs duties

income tax environmental protection high-tech enterprises to reduce tax VAT refunds and transfer pricing

tax and other taxes to ensure data burdens. compliance.accuracy and timeliness.Process Control List

Using the Risk Identification List and Role-Based Compliance Responsibility List as foundations each unit

analyzes and evaluates business management systems and processes identifying gaps and deficiencies

against compliance management requirements. Process control measures are then developed in accordance

with compliance requirements specifying control objectives responsible departments and personnel control Tax Risk Prevention and Control

frequency and other details. This integrates compliance management requirements into business manage-

ment systems and processes forming a "Process Control List".Internal Control Mechanisms Audit Response

The Company emphasizes compliance culture building organizing the study of Xi Jinping Thought on the Rule of Law and the training session of

Identify potential risks through internal audits tax risk Establish tax audit response plans maintain complete

national security and confidentiality labor relations bidding laws data protection financial management contract management intellectual

assessments and by addressing loopholes in business documentation for review and conduct regular

property production safety and supply chain compliance. It actively promotes compliance awareness to strengthen employees' compliance

related-party transaction pricing and invoice manage- tax health checks.consciousness. The Company treats SMEs equally consistently maintains good cooperative relationships with them strictly adheres to contract

ment.terms and has not experienced any incidents of overdue payments.Comprehensive Risk Prevention and Control

Tax Informatization Management

The Company strictly adheres to regulations such as the Guidelines for Comprehensive Risk Management of Central Enterprises and the Basic

Standards for Enterprise Internal Control. It has established the Company Comprehensive Risk Management Regulations and the Company Risk Manage- ERP systems such as SAP and Yongyou or specialized tax management systems are adopted to automate tax data processing filing and monitor-

ment Report Management Measures continuously improving a well-defined and systematic risk management framework. This framework centers ing minimizing human errors.on the Board of Directors' strategic decision-making supported by the execution and implementation of the management layer and reinforced

by the collaborative oversight of the "Three Lines of Defense" (business centers risk control and functional departments and audit departments).The Company advances the development of information systems such as treasury BI MES and WMS steadily transitioning the internal control

system from "human-based prevention and control" to "technology-based prevention and control". Focusing on key areas the Company has Invoice and Contract Management

established a dynamic assessment and monitoring mechanism for major risks accelerated the construction of a digital risk control platform

upgraded risk prevention capabilities and rapidly improved a comprehensive efficient and coordinated risk management system.Strictly implement VAT invoice issuance receipt and archiving procedures with tax responsibilities clearly defined in contract terms.

107 108Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Upholding Integrity and Trust- Case Minmetals New Energy Held 2025 Conference on Party Conduct Integrity Building and Anti-Corruption Work Alongside Warning Education Session

worthiness Building Enterprises On February 12 2025 Minmetals New Energy convened its 2025 Conference on Party Conduct Integrity Building and Anti-Corruption

Work alongside a warning education session. The meeting conveyed key directives from relevant conferences reviewed 2024 achieve-

on Solid Foundations ments in Party governance outlined 2025 tasks and featured the screening of the cautionary film Loyalty and Betrayal.Minmetals New Energy consistently prioritizes anti-corruption efforts refining a multi-tiered supervision and management framework to

establish a comprehensive integrity risk prevention and control mechanism. We strengthen warning education unclog channels for supervision

and reporting strictly adhere to the bottom line of clean cooperation and advance the three-pronged anti-corruption framework (the integrated

effort to ensure no one dares to is able to and has no desire to engage in corruption) in a holistic manner underpinning the steady and long-term

development of the company with strict discipline.Integrity and Ethical Building

The Company strictly complies with relevant laws and regulations such as the Criminal Law of the

People's Republic of China the Supervision Law of the People's Republic of China and the Anti-Money

Laundering Law of the People's Republic of China. It formulates and implements internal rules including

the Supervision and Inspection Measures for the 'Three Major and One Big' Decision-Making System the

Implementation Measures for the Responsibility System of Party Conduct and Integrity Construction the

"Implementation Measures for the Integrity Talk System for Key Position Cadres and the Management

Measures for Integrity Files of Party Committee-Managed Cadres. These efforts foster a culture of "dare

not cannot and do not want to corrupt" creating a compliant self-disciplined and ethical operating

environment that standardizes employee conduct prevents corruption and safeguards the rights

and interests of all stakeholders.The Company has established an anti-corruption management framework that fully covers the "Party The Company has established a whistleblowing complaint handling procedure and implemented a comprehensive complaint management and

Committee - Supervision Department - Subsidiary Enterprises." The Party Committee oversees the resolution mechanism to ensure all employees and relevant parties can report suspected violations involving the Company through the following

Party Supervision

advancement of corporate anti-corruption management at the decision-making level. The Supervi- Subsidiaries channels under confidential conditions.Committee Department

sion Department organizes or coordinates anti-corruption initiatives in accordance with its functional

responsibilities. Subsidiary enterprises establish dedicated supervisory bodies or positions staffed

with full-time (or part-time) personnel to carry out anti-corruption work in compliance with

regulations discipline and laws.Mail: Discipline Inspection Commission of Minmetals New Energy Materials (Hunan) Co. Ltd.Case Minmetals New Energy Strengthens Integrity Defenses Through On-Site Warning Education to Drive High-Quality Development

On July 7 2025 the Minmetals New Energy Party Committee organized Reporting E-mail Address: cylkjbx@163.com

concentrated on-site warning education for Party members and cadres.Participants visited an integrity exhibition and the Hunan Anti-Corrup-

tion Education Center gaining profound insights into the historical

progression of Party conduct construction notable anti-corruption

achievements and sobering lessons from typical provincial cases.Hotline: 0731-81867696 (landline) / 18229755103 (mobile)

109 110Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Proactively establishing a robust anti-commercial bribery system not only effectively mitigates To strengthen supervision and management of anti-corruption and anti-bribery among business partners the Company signed the Supplier

risks but also serves as a strategic investment for companies to build a strong reputation Integrity Commitment Letter with all suppliers the Key Position Integrity Commitment Letterwith cadres in critical roles and the Employee Integrity

Anti-Corruption Training Statistics enhance internal management efficiency and achieve sustainable development. The Company Commitment Letter with employees covering all personnel involved in procurement sales and finance-related areas. Any integrity issues

adheres to systems such as the Complaint and Report Acceptance Work Procedures to standardize discovered are rigorously investigated and dealt with in accordance with regulations and discipline targeting both individuals and cooperating

whistleblower protection mechanisms and safeguard their legitimate rights and interests. The enterprises. The Company's Measures for Handling Whistleblowing and Complaint Acceptance clearly defines the specific workflow for whistleblow-

Company designates dedicated personnel to handle complaint reception publicly discloses ing and complaints establishing multiple reporting channels such as complaint mailboxes email addresses hotlines and QR code reporting.Number of Management Personnel anti-corruption reporting channels including email and phone and strictly maintains confidenti- Both real-name and anonymous reporting modes are available to accept reports and feedback from business partners.Trained in Anti-Corruption ality for whistleblowers and reported content. The disciplinary inspection and compliance

departments conduct regular reviews spot checks and investigations. In accordance with the The Company thoroughly implements the spirit of the 20th National Congress of the Communist Party of China and successive plenary sessions

88 case review and investigation procedures outlined in the Discipline Inspection Organs' Supervision Person adhering to the strategic deployment of full and rigorous Party self-governance. It treats anti-corruption as a foundational project to ensure the

and Enforcement Rules of the Communist Party of China the Company has opened multiple high-quality development of the enterprise continuously deepening the integrated advancement of the "dare not cannot and do not want to

internal and external reporting channels including phone email mailbox and WeChat. It has corrupt" mechanism. The Company insists on opposing all corruption and investigating every case setting a long-term goal of handling no fewer

established a comprehensive management framework covering complaint acceptance prelimi- than two cases for review and filing annually. In 2025 the Company fully accomplished its targets taking disciplinary action against two individu-

Number of Employees Trained in nary verification case filing and case adjudication ensuring reviews verifications and disposi- als. Neither the company nor its employees were involved in any court-adjudicated corruption cases.Anti-Corruption tions are conducted in compliance with regulations and discipline.

2200 Person

Whole-process Management Specifications

Percentage of Management Trained in

Anti-Corruption

100 01 Petition Acceptance

Anti-Monopoly and Anti-Unfair Competition

%

Fair competition is the source of market vitality. The Company consistently adheres to the bottom line of the rule of law and business principles

Percentage of Employees Trained in strictly complies with relevant national laws and regulations as well as China Minmetals' compliance requirements upholds fair and orderly

Anti-Corruption Prelim?i?n?ar?y? V?e?rification 02 competition actively maintains market order and safeguards the legitimate rights and interests of all parties through standardized and compli-

ant business practices.

100 % The Company strictly complies with laws and regulations such as the Anti-Monopoly Law of the People's Republic of China the Anti-Unfair Competi-

tion Law of the People's Republic of China the State Council's Provisions on Standards for Declaration of Concentration of Undertakings the Interim

03 Provisions on Prohibiting Monopoly Agreements and the Interim Provisions on Prohibiting Abuse of Dominant Market Position. It also adheres to the Case Filing and Review

Number of Anti-Corruption China Minmetals Corporation Anti-Monopoly Compliance Guidelines and the Company's internal Compliance Management Measures. On the basis of

Training Sessions Conducted comprehensively advancing compliance management and considering compliance risk assessments the Company places particular emphasis on

strengthening compliance management in the areas of anti-monopoly and anti-unfair competition. Its operations conform to all applicable

4 domestic international and local laws and standards regarding anti-monopoly fair trade and anti-unfair competition in the regions where it Times conducts business. This ensures healthy competition with rivals maintains normal business interactions with customers suppliers and distribu-

Case Trial 04 tors and prevents any monopolistic practices.The Company conducts regular activities to study the Party Constitution regulations and

discipline carrying out eight targeted centralized warning education sessions. It circulated 105

typical cases investigated and handled by discipline inspection commissions and supervisory

committees at all levels online and arranged for grassroots Party branches to organize themed

Party Day activities such as "Warning Education" and "Family Traditions and Family Education."

The Company organized the "Five Ones" activities during the Warning Education Month

completing mandatory tasks such as studying typical cases reported at the central level and the

Compilation of Typical Cases by China Minmetals Corporation holding warning education

meetings and delivering thematic Party lectures. It meticulously planned warning education

exhibitions and immersive on-site education achieving full coverage of both content and target

audiences in warning education.

111 112Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Walking Together and Sharing Investor Hotline Shareholders' Meeting

Development

Minmetals New Energy attaches great importance to communication and rights protection with stakeholders such as shareholders creditors and

investors. Through a standardized governance system diversified communication channels and comprehensive rights protection measures the Inquiry Email Investor Research Event

Company builds an efficient and collaborative bridge of interest linkage effectively safeguarding the legitimate rights and interests of all

stakeholders and achieving mutual prosperity and development together. Online Offline

Stakeholder Engagement SSE E-interactive Platform Performance Briefing

The Company actively fosters a fair transparent and mutually beneficial investor relationship proactively listens to investor feedback enhances With compliance held the top priority the Company employs a hybrid "online + offline" approach to meet diverse investor needs. It provides

market value management and safeguards the long-term interests of its investors. By standardizing investor relations activities the Company multiple communication channels including investor hotlines inquiry emails the SSE E-Interaction platform earnings briefings investor research

has gradually fostered a corporate culture that serves and respects investors. It guides all employees to cultivate investor protection awareness activities and shareholder meetings to address investor concerns promptly. The Company maintains standardized records such as investor

and integrates investor demands into daily operations and management. Meanwhile the Company continuously optimizes communication communication logs disclosure approval forms and research reception procedures. These measures refine workflows preserve communication

services to attract high-quality investors building a stable and premium investor base. This enhances the Company's capital market image and and research records and enhance the standardization of investor relations management. In 2025 the Company participated in or hosted 8

achieves mutual development with investors. investor briefings and roadshows conducting over 300 in-person investor research receptions. The response rates to investor calls and SSE

E-interaction inquiries as well as the frequency of offline investor research receptions showed significant improvement.The Company strictly implements the Investor Relations Management Measures establishing a clear investor relations management framework.The Board Secretary is designated as the responsible person for investor relations management activities overseeing their planning and

execution. The Securities Department as the functional unit for investor relations management defines roles and refines workflows to ensure

orderly progress. The Company has established an internal collaboration mechanism strengthening coordination with operational financial and

R&D departments to promptly collect operational data major events and development plans. This ensures efficient and compliant information

dissemination to investors and stakeholders.In 2025

Company's Participation in or Organization of Investor Offline Investor Research Visits

Conferences and Roadshows

8 times Over 300 person-times

113 114Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Upholding Integrity and Driving Innovation and Straightening the Foundation for Shared Prosperity Through Governance

Shareholder and Creditor Rights The Company has established multi-dimensional shareholder communication channels including investor hotlines dedicated email addresses offline exhibition hall visits + on-site communication sessions and online interactive platforms. Designated personnel are responsible for

addressing shareholder inquiries and feedback ensuring shareholders can conveniently and promptly express their views. These measures

safeguard shareholders' rights to information participation expression and oversight enhancing the standardization of shareholder communi-

cation and the operation of shareholders' meetings. Prior to shareholder meetings the Company strictly adheres to statutory timelines and

The Company strictly adheres to regulations such as the Rules for Shareholders' Meetings of Listed Companies and the Rules of Procedure for regulations by publishing meeting notices through designated media clearly stating the meeting time location agenda and voting methods.Shareholders' Meetings establishing clear shareholder communication policies and Rules of Procedure for Shareholders' Meetings. These define the Concurrently complete meeting documents are prepared to ensure shareholders are fully informed of key content safeguarding their right to

principles methods and frequency of shareholder communication detailing the entire process requirements for convening conducting voting know. During implementation there are no instances of missed shareholder notifications or document omissions achieving 100% notification

and announcing shareholders' meetings. Additionally they specify core provisions such as the recusal of related shareholders and the delegation delivery rate and seamless online document accessibility. During meetings a hybrid format of "in-person meetings + online voting" is adopted to

of authority in shareholders' meetings providing a solid institutional foundation for all operations and ensuring that shareholder communication ensure equal participation for all shareholders enhancing engagement. In 2025 all shareholder meetings were conducted in this manner.and decision-making processes are well-regulated and compliant. Post-meeting core information such as resolutions voting results and separate vote tabulations were promptly disclosed via exchange-designat-

ed media within stipulated timeframes ensuring transparency and protecting shareholders' right to know.For all shareholders' meetings the Company engages professional lawyers to provide on-site witness and issue legal opinion letters for

disclosure. The Company strictly implements the recusal system for related shareholders. Before deliberating on proposals such as related-party The Company fully safeguards creditor rights maintaining zero bad credit records in lending activities throughout 2025.transactions that may harm the interests of non-related shareholders the Company compiles and discloses the list of related shareholders in

advance clarifying the scope and procedures for recusal. Related shareholders voluntarily abstain from the deliberation and voting of relevant

proposals with the entire process subject to supervision effectively safeguarding the legitimate rights and interests of non-related shareholders.In 2025 the Company convened 3 extraordinary shareholders' meetings and 1 annual shareholders' meeting for 2024 approving 17 proposals.Information The Company adheres to the principles of fair just and transparent information disclosure providing stakeholders with truthful accurate complete and timely financial operational and

In 2025 governance information. It fulfills the disclosure obligations of a listed company and safeguards

Disclosure the right to know for all stakeholders.Company Shareholders’ Extraordinary 2024 Annual Shareholders' Adoption of Resolutions

General Meetings Held Meeting The Company strictly complies with all regulatory requirements for listed companies strength-

ens its primary responsibilities and continuously enhances information disclosure manage-

3 1 17 ment. It proactively accepts supervision from regulatory authorities investors and the broader times

In 2025 society demonstrating corporate accountability through transparent and standardized

governance thereby solidifying the foundation of market trust. In 2025 the Company legally and

Interim Announcements Disclosed compliantly disclosed over 50 interim announcements 4 periodic reports and other disclosure

by the Company in accordance with documents effectively fulfilling its information disclosure obligations as a listed Company. By

Laws and Regulations combining text charts images and other formats the Company ensures investors can promptly

The Company adheres to equal treatment for all investors and resolutely prohibits any abuse of power or actions that harm investor interests. In

understand its operational status and investment value. It places strong emphasis on the

line with the practical needs of operation and corporate governance we have engaged Jinmen Finance a third-party professional institution to 50 readability of disclosures to reduce interpretation difficulty for investors and publishes bilingual organize investor earnings briefings after the release of each periodic report. We also actively participate in a variety of industry activities Over (Chinese-English) ESG reports consistently prioritizing communication with overseas investors.including roadshows hosted by the Shanghai Stock Exchange (SSE) group earnings briefings for listed companies under the Hunan jurisdiction of

the China Securities Regulatory Commission (CSRC) and group earnings briefings for listed companies affiliated to China Minmetals Corporation.While improving communication efficiency with investors and smoothing communication channels we strictly standardize investor relations (IR) Number of Periodic

management to ensure all relevant work is lawful compliant fair and impartial and that all investors enjoy equal rights to information access and Reports Disclosed

communication.

4

Meanwhile the Company places high importance on protecting the

rights and interests of minority investors. While ensuring the lawful

and effective convening of shareholders' meetings it actively In 2025

facilitates minority shareholders' participation by providing online

Organization of Offline Investor

voting channels to reduce their attendance costs. The votes of minori-

Research Events

ty investors are separately counted with the results publicly

disclosed. The Company also earnestly accommodates offline

investor research activities organizing over 10 such events in 2025. Over 10 person-times

During the election of directors and supervisors a cumulative voting

system is adopted to effectively safeguard minority shareholders'

voting rights and fully protect their legitimate interests.

115 116Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Future Outlook

Future Outlook

A New Journey Begins Striving to Lead. Minmetals New Energy will adhere to Xi Jinping Thought on

Socialism with Chinese Characteristics for a New Era as its fundamental guide thoroughly study and

implement the spirit of the 20th CPC National Congress and the second third and fourth plenary

sessions of the 20th CPC Central Committee anchor itself to the decisions and deployments of the CPC

Central Committee and the State Council and uphold Minmetals' original mission of "dedicating to the

nation through mining and shouldering the responsibility of building a mining powerhouse". Maintain-

ing the general principle of pursuing progress while ensuring stability the Company will fully accurate-

ly and comprehensively implement the new development philosophy rigorously advance the

implementation and effectiveness of rectifications from inspections and economic responsibility audits

conducted by the CPC Central Committee and Minmetals' Party leadership and coordinate efforts to

stabilize growth strengthen innovation optimize industries deepen reforms prevent risks ensure

safety promote green development and enhance Party building. Through practical action it will fulfill

its mission and demonstrate its commitment.?

In the new year the Company will anchor itself to the goals of the 15th Five-Year Plan focus precisely

and persist with long-term efforts to achieve its annual operational and developmental tasks. It will

deepen its core business foster synergy across industrial chains and paint a new vision for ecosystem

development across the entire industrial chain. By tackling core challenges and empowering transfor-

mation it will focus on original innovation and key technological breakthroughs invigorating new

momentum for the commercialization of scientific and technological achievements to foster the

development of new quality productive forces. Benchmarking against world-class standards and

deepening reforms the Company will activate endogenous drivers through market-oriented mecha-

nisms driving quality and efficiency improvements with tangible results. It will uphold bottom-line

thinking and implement systematic risk prevention building robust safety barriers in key areas such as

industrial and supply chains and workplace safety. Guided by green principles and empowered by

low-carbon initiatives the Company will advance the construction of zero-carbon factories and the

application of industrial green microgrids solidifying the foundation for ecological development.Adhering to the "20-character" standards for state-owned enterprise leaders it will refine its work ethic

and capabilities through practical action unite efforts to overcome challenges and continue writing

new chapters.?

Steadfast in Purpose; Advancing with Stability. With an unwavering spirit and relentless determination

Minmetals New Energy will steadfastly promote high-quality development ensuring a strong start to

the 15th Five-Year Plan. In the journey to safeguard national energy security drive industrial upgrading

and contribute to the "dual carbon" goals the Company will exemplify the mission of a central

enterprise and deliver a responsible answer to the times!

117 118Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Appendix

Appendix 1: Key Performance Table Indicator Unit 2025? 2024 2023

Percentage of Total Environmental Protection

Investment to Operating Revenue % 0.54 0.97 0.39

Amount of Major Administrative Penalties Imposed by

Environmental Protection and Other Relevant

Authorities for Environmental Incidents During the RMB 10000 0.00 0.00 /

Reporting Period

Environment Pollutant Discharge

Wastewater Discharge 10000 Tons 0.00 0.00 0.00

Indicator Unit 2025? 2024 2023 Industrial Wastewater Discharge 10000 Tons 0.00 0.00 0.00

Water Resource Utilization Pollutant Equivalent

Ammonia Nitrogen Value/Total 0.00 0.00 0.00

Total Water Consumption 10 000 Tons 162.61 122.78 128.78 Emissions (Ton)

Pollutant Equivalent

Freshwater Intake 10 000 Tons 106.81 82.46 94.49 COD Value/Total 0.00 0.00 0.00

Emissions (Ton)

Total Volume of Recycled Water 10 000 Tons 55.80 40.32 34.29 Emissions of Air Pollutants (Ammonia) Ton 0.64 0.48 0.69

Proportion of Total Recycled Water % 34.32 32.84 26.63 Emissions of Air Pollutants (Sulfuric Acid Mist) Ton 0.11 0.37 0.06

Water Consumption Per RMB Million Revenue Tons/Million Revenue 174.10 221.66 120.03 Air Pollutant Emissions (Particulate Matter) Ton 1.30 2.08 1.54

Energy Utilization

Nitrogen Oxides Emissions Ton 6.52 4.62 /

Total Energy Consumption 104tce 11.12 8.49 7.91 Sulfur Oxides Emissions Ton 1.80 1.28 /

Direct Energy Consumption 104tce 1.32 0.95 / Waste Disposal

Fossil Energy Consumption 104tce 1.32 0.95 / Total Solid Waste Disposal Ton 8231 1970.94 /

Gasoline Consumption L 3133.65 1297.30 959.46 Generation Volume of General Industrial Solid Waste Ton 7553 1607.60 /

Natural Gas Consumption 104tce 1.32 0.95 0.39 Generation Volume of Hazardous Waste Ton 683 363.34 /

Non-fossil Energy Consumption 104tce 0.11 0.04 / Hazardous Waste Disposal Ton 678 363.34 /

Clean Energy Consumption 104tce 5.3 0.95 / Total Hazardous Waste Generated Per Million Revenue Ton/Million Revenue 0.073 0.066 /

Proportion of Clean Energy Consumption % 57.51 11.19 / Total Non-hazardous Waste Generated Per Million Revenue Ton/Million Revenue 0.81 0.29 /

Indirect Energy Consumption 104tce 9.80 7.55 / Greenhouse Gas Emissions Management

Purchased Electricity 104tce 9.13 6.72 6.74 Total GHG emissions 10000 tCO?e 44.64 34.07 33.08

Purchased Steam 104tce 0.67 0.83 0.78 Scope 1 GHG emissions 10000 tCO?e 3.41 2.67 1.71

Tons of Standard Coal

Energy Consumption Per RMB Million Revenue Equivalent Per Million 11.91 15.33 7.37 Natural Gas 10000 tCO?e 2.15 1.54 0.64

Revenue

Environmental Compliance Management Carbonate 10000 tCO?e 1.27 1.13 1.07

Total Environmental Protection Investment RMB 10000 5008.81 5369.98 4139.78 Gasoline Tons of CO? Equivalent 7.42 2.92 2.16

119 120Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Appendix

Indicator Unit 2025? 2024 2023 Indicator Unit 2025? 2024 2023

Scope 2 GHG Emissions 10000 tCO?e 41.23 31.40 31.36 By Gender

Purchased Electricity 100 Million kWh 7.43 5.46 5.49 Male Person 1813 1576 1810

??????????????????????????????????????????????????????????????????????

Purchased Heat (Steam) 650000 Gigajoules 19.59 24.22 22.92 Female Person 500 488 520

GHG Emission Reductions Ton of CO? Equivalent 25718 11648 / Percentage of Female Employees % 21.62 23.64 22.32

Scope 1 emission reductions Ton of CO? Equivalent 5513 4359 / By age

Scope 2 Emission Reductions Ton of CO? Equivalent 20205 7289 / 30 and Below Person 810 665 808

Tons of CO?

Direct (Scope 1) Greenhouse Gas emissions Per 30-50 (Inclusive) Person 1386 1251 1398Equivalent /RMB

Million Revenue 3.65 4.82 1.59Million Revenue

Above 50 Person 117 148 124

Tons of CO?

Indirect (Scope 2) Greenhouse Gas Emissions Per Equivalent /RMB

RMB Million Revenue 44.14 56.69 29.23Million Revenue By Professional Category

Tons of CO? Production Personnel Person 1492 1280 1590

Greenhouse Gas Emission Intensity Per RMB Equivalent /RMB

Million Revenue 47.79 61.51 30.83Million Revenue

Sales Personnel Person 12 19 20

Procurement Personnel Person 32 18 /

Technical Personnel Person 637 593 558

Social Dimension Financial Personnel Person 21 20 23

Administrative Personnel Person 119 134 139

Indicator Unit 2025? 2024 2023 By Education Background

Employee Recruitment and Employment Doctoral degree Person 12 12 14

Total Number of Employees Person 2313 2064 2330 Master's degree Person 216 228 207

Ethnic Minority Employees Person 124 111 148 Bachelor and Below Person 2085 1824 2109

Percentage of Ethnic Minority Employees % 5.36 5.38 6.35 By Region

Disabled Employees Person 5 5 / Chinese Mainland Person 2313 2064 2330

Percentage of Disabled Employees % 0.22 0.24 / Employee Remuneration and Benefits

Veteran Employees Person 61 32 / Social Insurance Coverage % 100.00 100.00 100.00

1

Percentage of Veteran Employees % 2.64 1.55 / Per Capita Compensation RMB 10000 12.59 11.30 11.43

By Employment Type Revenue Per Capita RMB 10000 424.36 252.00 460.47

Full-time Employees Person 2313 2064 2330 Note1:Due to adjustments in statistical methods historical data has been retrospectively revised.

121 122Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Appendix

Indicator Unit 2025? 2024 2023 Indicator Unit 2025? 2024 2023

Employee Development and Training Social Welfare

Frontline Employee Training Coverage Rate % 100.00 100.00 100.00 Community Welfare Investment RMB 10000 0 2.80 3.40

Three-level Safety Education Coverage Rate % 100.00 / / Community Philanthropic Investment Per RMB Million RMB 10000 0 0.00051 0.00032Revenue

Employee Care and Assistance Number of Local Employees Hired Person 1836 1851 2330

Amount of Investment in Employee Assistance RMB 14000 18000 / Percentage of Local Employees % 79.38 89.60 100.00

Number of Needy Employees Assisted Person 7 9 / Total Number of Public Welfare Activities Times 7 / /

Innovation and R&D Volunteers Participating in Public Welfare Activities Person 143 / /

R&D Investment RMB100 Million 2.67 2.32 3.77 Volunteer Hours in Public Welfare Activities Hours 14 / /

R&D Investment Ratio % 2.87 4.18 3.51

Number of R&D Personnel Person 307 301 282 Governance

Proportion of R&D Personnel % 13.27 13.692 12.10

Total Number of Valid Patents Cases 202 162 141

Indicator Unit 2025? 2024 2023

Valid Patents Per RMB Million Revenue Cases 0.020 0.029 0.023

Corporate Governance

Number of Software Copyrights ? 3 3 3

Number of Shareholders' Meetings Times 4 5 3

Number of Software Copyrights Per RMB Million Revenue Cases 0.00032 0.00054 0.00028

Number of Board Meetings Times 12 11 9

Health and Safety

Number of Audit Committee Meetings Times 7 5 5

Work Safety Investment RMB 10000 1047.53 732.7 533.4

Number of Nomination Committee Meetings Times 3 2 /

Proportion of Safety Production Investment to Revenue % 0.11 0.08 0.05

Number of Strategy Committee Meetings Times 2 2 /

Safety Production Training Duration Hours 55000 58000 53600

Proportion of Independent Directors on Audit Committee % 66.67 66.67 66.67

Average Safety Training Hours Per Capita Hours 20 28 23

Proportion of Independent Directors on Remuneration %

Committee 66.67 66.67 66.67

Work safety training sessions Hours 163 183 161

Percentage of Independent Directors in Nomination %

Committee 66.67 66.67 66.67

Number of Employees Trained in Workplace Safety Person-times 12260 16295 13930

Attendance Rate of Board Members % 100.00 100.00 100.00

Employee Coverage Rate of Occupational Safety Training % 100.00 100.00 100.00

Average Tenure of Board Members Year 2.37 3 3

Amount of Investment in Occupational Injury

Insurance for Employees RMB 10000 118.68 81.47 /

Does the CEO Serve as Chairman of the Board / No No /

Occupational Injury Insurance Coverage % 100 100 /

Proportion of Independent Directors % 33.33 37.50 33.33

Incidence Rate of Occupational Diseases % 0.00 0.00 /

Standard Deviation of Age Among Directors Supervi- Years

sors and Senior Management 7.99 6.97 8.35

Number of Work Safety Accidents Cases 0 0 0

Note2:Due to adjustments in statistical methods historical data has been retrospectively revised.

123 124Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Appendix

Indicator Unit 2025? 2024 200.0203 Indicator Unit 2025? 2024 2023

Proportion of Female Directors % 22.22 12.50 0.00 Number of Investor Calls Answered Times 280 / /

Percentage of Independent Directors with Tenure %

Exceeding 6 Years 0.00 0.00 0.00 Number of Periodic Reports Disclosed Units 4 / /

Percentage of Independent Directors Serving on

More Than 3 listed Companies % 0.00 0.00 0.00

58 (Excluding

Supporting

Number of Interim Announcements Issued Times Documents

Is the Chair of the Audit Committee an Accounting / // Uploaded with

Professional Yes Yes / Announcements)

Compliance in operation

Number of Compliance Training Sessions Times 33 13 12

Duration of Compliance Training (hours) Hours 23.60 27.50 20.00

Number of Compliance Training Participants Person-times 459 500 488

Percentage of Directors Trained on Anti-Bribery and %

Anti-Corruption 100.00 / /

Percentage of Management Personnel Trained on %

Anti-Bribery and Anti-Corruption 100.00 100.00 100.00

Percentage of Employees Receiving Anti-bribery and %

Anti-corruption Training 100.00 100.00 100.00

Number of Anti-corruption Training Sessions Times 72 48 45

Anti-corruption Training Hours Hours 106 62 60

Number of Employees Trained on Anti-corruption Person-times 2911 2000 1593

Number of Anti-corruption Articles and Case Studies Times

Published 31 23 17

Amount Involved in litigation or Major Administra-

tive Penalties Due to Unfair Competition During the Times 0 / /

Reporting Period

Number of Major Litigations % 1 / /

Number of Arbitration Cases Units 1 / /

Investor Relations and Shareholder Rights Management

Performance Briefing Times 6 4 4

Number of Roadshows Times 8 / /

Number of Investor Exchange Meetings Times 6 / /

Number of Platform Replies Times 45 / /

125 126Minmetals New Energy Materials (Hunan) Co. Ltd. 2025 ? Environmental Social and Governance (ESG) Report Appendix

Appendix II: Index Table Feedback Form

ESG Guidelines for Centra 4 Dear ReadersSection Title Exchange Guidelines

SOEs3

Greetings! Thank you for reading the Environmental Social and Governance (ESG) Report of Minmetals New Energy. To enhance the

About This Report G5.1?G5.2 Article 2 Article 4 Article 6 quality and standard of the report we sincerely hope you can provide valuable comments and suggestions. We look forward to your

feedback!

Message from the Chairman / Article 2

About Us / Article 12

Selective Questions (Please mark "√" in the appropriate box)

ESG Management G5.1?G5.2 Article 11 Article 14 Article 15 Article 16 Article 17 Article 51 Please evaluate the extent to which this report reflects Minmetals New Energy's impact on the economy society and environment:

Excellent Good Average Poor Very Poor

Stakeholder Engagement G3.1?G3.2?G3.3?G4.1?G4.2 Article 9 Article 52 Article 53

Please evaluate this report's response and disclosure to stakeholder concerns:

Materiality Topics / Article 5 Article 7 Article 9 Article 10 Article 18

Excellent Good Average Poor Very Poor

Smart Resource Empowerment

Breaking New Ground in E.1.1?E.1.2?E.1.3?E.1.4?E.5.1? Article 34 Article 35 Article 36 Article 37

Recycling E.5.2E.5.3?E.5.4 Please evaluate the clarity accuracy and completeness of the disclosed information indicators and data in this report:

Environmental

Dimension: Fulfilling Ecological Excellent Good Average Poor Very Poor

Green Energy in Responsibility Committed

Action E.2.1?E.2.2?E.2.3?E.4.1 Articles 29 30 31 32 and 33to Going Green

Painting a Shared Please rate the readability of this report's content:

Future with Green

Pursuing "Dual Carbon" Excellent Good Average Poor Very Poor

Goals Empowering the E.3.1?E.3.2?E.3.4?E.5.6 Articles 20 21 22 23 24 25 26 27 and 28

Future

How would you rate this report overall

Dreaming in the Workplace and

Growing Together S1.1?S1.2?S1.3?S1.4 Article 49 Article 50 Excellent Good Average Poor Very Poor

Sincerely Service Customers and

Value Co-creation S2.1?S2.2 Article 44 Article 47 Article 48

Social Dimension: Open Questions

Hearts Toward the Advancing Innovation for Article 41 Article 42 Article 43

Warm Sun Research for Long-Term Impact

S2.3

Which aspects of this report do you find most satisfactory

Building a Win-Win Intellectual Property Protection

Ecosystem with Building Momentum for Progress S2.3 / What additional information would you like to see disclosed in this report

Responsibility

Collaborative Synergy and Shared

Value Across the Chain S3.1?S3.2

Article 44 Article 45 What suggestions or comments do you have regarding Minmetals New Energy's ESG work

Public Welfare Warming Hearts S4.2?S4.3?S4.4 Articles 38 39 and 40Enriching Society

If willing please feel free to provide your personal information:

Party Building as the Guiding

Force: Uniting and Empowering G1.1 Article 51

Governance Strengthening Enterprises by Name: Occupation: Institution:

Dimension: Excellence in Governance Making G1.1?G1.2?G1.3 Article 51

Upholding Integrity Steadfast and safe Progress Tel.: Email: Address:

and Driving

Innovation Compliance as the Shield and

Strengthening the Upholding Integrity S4.1 G2.1 G5.1 G5.2 Article 52

Foundation for Our Contact Information

Shared Prosperity Upholding Integrity and

Through Trustworthiness Building G2.2 G2.3 Article 54 Article 55 Article 56

Governance Enterprises on Solid Foundations Minmetals New Energy Materials (Hunan) Co. Ltd.Walking Together and Sharing Website: http://www.cylico.com/

Development G3.1 G3.2 G3.3 G4.1 G4.2 Article 9 Article 53

Contact Email: cylico@minmetals.com

Note3: The Central SOEs ESG Guidelines refer to the Reference Indicator System for ESG Special Reports of Central SOE-controlled Listed Companies.Note4: Exchange Guidelines refer to the Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (Trial).

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