Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

CONTENTS

About this Report 3

Message from Chairman 6 01 02 03

About Us 10

Environmental Section:

ESG Management 16 Community Section: Governance Section:

Communication with Stakeholders 20 Harmony with Nature Empowerment Spreading Genuine Compassion Multi-stakeholder Co-governance

through Ecology

Material Issues 22 Protecting Deeds of Kindness for Collaborative Development

Optimizing Resource Management 27 Building a Happy Workplace 53 Adhering to Party Building and Guide 85

Practicing the Thought on Ecological Civilization 33 Protection of Customers’Rights and Interests 63 Optimizing Corporate Governance 90

Combating Climate Change 41 Refining and Advancing R&D and Innovation 70 Lawful and Compliant Management and Control 93

Collaborative Value Chain Management 77 Observing Business Ethics 103

Public Welfare Benefits Society 81 Working Hand in Hand for Shared Success 106

Outlook 109

Appendix 1: Key Performance Indicators 111

Appendix II: Index List 119

2 3Environmental Section: Community Section: Governance Section:

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About this Report

This is the fourth Environmental Social and Governance (ESG) Report released by Minmetals New Energy Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) the Guidelines No.Materials (Hunan) Co. Ltd. (hereinafter referred to as "Minmetals New Energy" the "Company" or "we"). 13 of the STAR Market of Shanghai Stock Exchange for Self-regulation of Listed Companies — Preparation

This report is prepared in an objective standardized transparent and comprehensive manner to fully disclose of Sustainability Reports the Sustainability Reporting Standards (GRI Standards) released by the Global

the specific measures major practices highlight cases and key performances in proactively assuming social Sustainability Standards Board (GSSB) and the Sustainable Development Goals (UN SDGs 2030).responsibilities and executing effective management of ESG risks and opportunities by Minmetals New

Energy in 2024 with a view to proactively responding to the intended expectations of stakeholders and Data Source & Assurance of Reliability

fulfilling its social responsibilities more efficiently.All information and data cited in this report are primarily derived from internal documents of Minmetals

New Energy or relevant public sources. Minmetals New Energy guarantees that this report contains no false

Time Frame

records misleading statements or material omissions and assumes individual and joint responsibility for the

This is an annual report. Unless otherwise stated the reporting period covers January 1 2024 to December authenticity accuracy and completeness of its contents.

31 2024. To enhance the comparability and completeness of the report certain sections of the report may

appropriately revisit previous years or include forward-looking statements. Monetary Unit

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

Report Accessibility

This report is based on Minmetals New Energy as the main reporting entity including its branches and

subsidiaries. Unless otherwise stated the scope of this report is consistent with the consolidated financial This report can be accessed and downloaded via the official website of Minmetals New Energy (http://

statements of the Company's annual financial report. www.cylico.com/) and the website of the Shanghai Stock Exchange (https://www.sse.com.cn).References Comments & Feedback

This report is prepared in accordance with guidelines set forth in the Guiding Opinions on State-owned If you have any comments or suggestions regarding the contents of this report or the Company's ESG

performance please feel free to contact us via the following contact information. Any valuable comment

Enterprises Fulfilling Social Responsibilities Better and the Reference Indicator System for ESG Reports of

and suggestion will help us further improve this report.Listed Companies Controlled by Central Enterprises (ESG Reports Indicator System for Central Enterprises)

issued by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Tel.: 0731-88998112

Council the Guidelines No. 1 of the STAR Market of Shanghai Stock Exchange for Self-regulation of Listed

Email: cylico@minmetals.com

Companies — Standardized Operation (Revised in December 2023) the Guidelines No. 14 of Shanghai

03 04Environmental Section: Community Section: Governance Section:

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Names and Abbreviations Message from Chairman

Abbreviation Full Name

China Minmetals China Minmetals Corporation

Minmetals New Energy /

the Company / We Minmetals New Energy Materials (Hunan) Co. Ltd.Former company name:

Changyuan Lico Former company name: Hunan Changyuan Lico Co. Ltd.Minmetals Capital Minmetals Capital Co. Ltd.CRIMM Changsha Research Institute of Mining and Metallurgy Co. Ltd.LICO Technology Corp. LICO Technology Corporation (Taiwan China)

Gold Shine Energy Gold Shine Energy Material Co. Ltd.Changyuan New Energy Hunan Changyuan Lico New Energy Co. Ltd.

2024 is a pivotal year for advancing the modernization of China on all fronts. This year the Company

adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era

thoroughly implemented the requirements of the Central Economic Work Conference actively practiced

the new development concept of economic development innovation-driven people's well-being green

ecology and security adhered to the general work tone of seeking progress in stability promoting stability

through progress and establishing before breaking adhered to the original mission deepened the main

responsibilities and main business focused on value creation and continued to deepen reforms and made

every effort to promote the high-quality development of the Company together with many partners to

contribute the "Strength of Minmetals New Energy" to the progress of the industry and the sustainable

development of society.

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Under the background of global energy structure transformation the new energy cathode material industry In the new chapter of 2024 we’ve been upholding our social responsibilities with resolute strides

has ushered in unprecedented development opportunities. As a pioneer and leader in the cathode material demonstrating the mission and commitment of a central SOE. The Company always keeps in mind

market Minmetals New Energy is fully aware of the responsibilities and missions it shoulders. The Company “the most fundamental priorities of the nation” and is fully committed to the strategic development of the

deeply integrates ESG concept into corporate strategy not only to respond to the call for global sustainable country's new energy industry. We have intensified investments in R&D of core technologies striving to

development but also to lead the cathode material industry to a greener more efficient and sustainable accelerate the cultivation and development of new-quality productive forces aiming to reach new heights

direction. in achieving self-reliance and strength in science and technology. We firmly believe that while creating

economic benefits enhancing social value is equally important. We are committed to ensuring that the fruits

In our 2024 journey we remained unwavering in our commitment to green development. The Company of development are shared with the broader society. The Company actively organizes various public welfare

coordinated high-quality development and high-level environmental protection actively and steadily

advanced carbon peak and carbon neutrality initiatives intensified efforts to prevent and control pollution so initiatives such as donating relief supplies supporting education facilitating university-enterprise

as to coordinate the promotion of carbon reduction pollution prevention and control ecological conservation collaborations promoting blood drives and participating in afforestation efforts and continuously

and economic growth. We have strictly implemented the primary responsibility of ecological environmental dedicates itself to targeted assistance in designated regions. We help consolidate and expand the results of

protection established and improved the ecological environment management system consolidated the poverty alleviation and promote its deep integration with the rural revitalization strategy to jointly draw a

foundation of environmental risk prevention and control and strictly adhered to the bottom line of ecological beautiful picture of prosperity and development. On the path of strengthening the Company through talent

environment risk to constantly consolidate and expand the achievements of pollution prevention and control. development the Company always prioritizes employees' health safety and personal growth. We actively

Simultaneously we vigorously promoted energy conservation carbon reduction and efficiency improvement promote the philosophy of "Efficient Work Healthy Living" and diligently foster a warm and harmonious

initiatives actively drove the transition to a cleaner and low-carbon energy structure and consistently "Home for Employees". By organizing diverse cultural and sports competitions we continuously optimize

enhanced the efficiency of energy and resource utilization to deeply root the principles of green low-carbon the work environment for employees effectively enhancing their sense of fulfillment happiness and

and environmental protection practices into every aspect of production operation and management. We have security. This reflects not only our care for individual employees but also our profound commitment to

not only completed carbon footprint certification and full life cycle assessment for our core products but also corporate culture demonstrating our steadfast dedication to building a harmonious enterprise.made solid progress in energy conservation and carbon reduction across multiple areas including raw material

procurement technological R&D innovation equipment upgrades manufacturing processes production In 2024 we courageously benchmarked ourselves against world-class enterprise standards and

optimization and project planning. Meanwhile the Company has actively organized campaigns such as continuously enhanced our modern governance capabilities through reform and innovation. We

"National Energy Conservation Week" and "National Low-Carbon Day" and injected strong momentum thoroughly implement the principle of "maintaining the two consistencies" and comprehensively advance

into building a Beautiful China and achieving the "Dual Carbon" goals by leveraging digital and intelligent institutional improvement structural optimization and organizational adjustment to ensure the deep

technologies such as energy online monitoring and MES systems. On the path of green development we integration of Party leadership with the corporate governance system. In close alignment with the strategic

take concrete actions to shoulder our corporate responsibilities and mission. Every detail we optimize and directives of the SASAC of the State Council and China Minmetals regarding the new round of state-owned

every innovation we make embodies our aspirations for a brighter future and our profound commitment to enterprise reform and enhancement initiatives as well as the world-class enterprise value creation campaign

protecting our planet. we have undertaken coordinated planning to advance the Company's comprehensive deepening reform and

world-class enterprise development.

07 08Environmental Section: Community Section: Governance Section:

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We focus on the development vision of "product excellence brand distinction innovation leadership and About Us

modern governance" continuously strengthening the Company's core competitiveness consolidating and

enhancing core business capabilities. We vigorously reinforce our headquarters' strategic execution capacity

in "oversight and coordination" fully leveraging the comprehensive functions of internal control risk Company Profile

prevention and compliance operations to ensure the Company's steady and sound performance. Minmetals New Energy Materials (Hunan) Co. Ltd. (Abbreviation: Minmetals New Energy Stock Code:

688779) was established in 2002. As a directly managed subsidiary of China Minmetals Corporation a

Through the formulation and implementation of a series of policy measures that align with both current Fortune Global 500 company it is a member of the State-Owned Enterprise Electric Vehicle Industry

practical needs and long-term development vision we have steadily enhanced the modern governance Alliance the president organization of the Hunan Battery Industry Association and the leading organization

efficiency of the Company driven by the dual engines of "reform" and "innovation". These initiatives aim to of the Changsha-Zhuzhou-Xiangtan Advanced Energy Storage Materials Industry Alliance. It was listed on

build a more efficient transparent and modern corporate governance system laying a solid foundation for the Shanghai Stock Exchange's Sci-Tech Innovation Board in August 2021.the sustainable development of the Company.As the core pillar of China Minmetals’ innovation-driven development strategy and the creation of "Future

Environmental protection social responsibility and corporate governance are the three cornerstones of New Momentum" Minmetals New Energy adheres to the action guidelines value orientation and corporate

corporate sustainable development. Looking to the future Minmetals New Energy will unswervingly spirit of "global mission responsibility leadership in independent innovation problem-oriented thinking

follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era pursuit of excellence and the fighting spirit to triumph". With the strategic positioning of becoming "a

comprehensively and thoroughly implement the spirit of the 20th National Congress of the Communist Party first-class domestic and internationally renowned new energy materials supplier" the Company focuses

of China bravely shoulder the historical mission of a central SOE and live up to the gifts of the times and on its core responsibilities upholds integrity while driving innovation demonstrates bold commitment to

the expectations of the people. We always maintain a pioneering and enterprising spirit pressing ahead with excellence and strives for world-class standards. It is dedicated to strengthening optimizing and expanding

an overwhelming sense of urgency to strive for excellence. Committed to the ambitious vision of becoming the Company and sharing development achievements with a broader range of stakeholders.“a global leader in the new energy materials industry” we will embark on this new journey with even greater

determination writing a new chapter of high-quality development for Minmetals New Energy and creating In the future the Company will actively implement the new development philosophy featuring innovation

remarkable achievements worthy of the new era. coordination greenness openness and sharing stay true to our founding aspirations and consolidate our

strengths and join hands with partners worldwide to strive resolutely toward becoming "a global leader in

the new energy materials industry". We will continue dedicating ourselves to meeting the people’s growing

Minmetals New Energy Materials (Hunan) Co. Ltd.needs for a better life striving to serve the implementation of the national new energy vehicle strategy and

Liuquan Hu Party Secretary and Chairman

taking on responsibilities to promote high-quality economic and social development so as to make new and

greater contributions to the realization of the second Centenary Goal.

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Corporate Culture Organizational Structure

Core Values of Corporate Culture General Meeting of Shareholders

Strategy Committee Board of Supervisors

Nomination Committee

World-class spirit of responsibility Board of Directors

Remuneration and Assessment Committee

persistence in quality improvement

Guide to action Audit Committee

leading role in independent innovation Managersvalue orientation

striving spirit towards victory corporate spirit

problem-oriented mindset at work

Corporate Mission

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

Principles for Practicing Corporate Culture

Strive for excellence as employees create first-class products and build a first-class enterprise

together

Pillars of Corporate Culture

Party building Quality Integrity Talent

Political leadership integrated Survive with quality certify to Virtue integrity and pragmatism; Opportunities for the willing

development people-oriented gain market succeed on details dedication commitment and platforms for the capable and

approach and joint contribution and build the future with quality diligence incentives for the achievers

and shared benefits

Safety Customer Compliance Innovation

Safety is the greatest saving and View the market with sincerity Compliance creates value Technological innovation

accidents are the greatest waste and treat customers with honesty and compliance is everyone's drives high-quality enterprise

responsibility development

1112

Gold Shine Energy Material

Changyuan New Energy

Project Command Center

Logistics Department

Information Technology Center

Quality Assurance Department

Procurement Department

Procurement Center

Planning and Material Control Department

International Business Department

Sales Center

Sales Department

Science and Technology Promotion Department

Technical Support Department

Technology Research Institute

R&D Center R&D Department 2

R&D Department 1

Safety and Environmental Protection Department

(Party Committee Inspection Office Audit Department)

Disciplinary Inspection Department

Finance Department

(Office of the Board of Directors Enterprise Management Department Securities Affairs Department Legal Department)

Strategic Planning Department

(HR Department)

Party Committee Organization Department

(Party Committee Office Party and Mass Work Department Party Committee Propaganda Department)

Overall Management DepartmentEnvironmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Business Overview Milestones

The Company focuses on the R&D manufacturing and sales of highly efficient battery materials. Its main Year Milestones

products include multi-element material precursors multi-element cathode materials and LFP LCO and

CRIMM and Lico Technology Corp. set up a joint venture company mainly

other cathode materials for lithium batteries and nickel metal hydride batteries. The Company owns a 2002

producing lithium cobalt oxides

complete product system covering multi-element material precursors for lithium batteries multi-element

cathode materials for lithium batteries and LFP cathode materials and has always taken a lead in market Become a wholly-owned subsidiary of Minmetals Capital (formerly Jinrui

2014

share of power-supplying ternary materials. The Company is headquartered in Changsha Hunan Province Technology) a listed company

and operates three production bases in High-tech Lugu and Tongguan with an annual production capacity

7000-metric-ton project assets of Changyuan Lico Jinchi Energy and CRIMM

of 120000 metric tons of ternary cathode materials 60000 metric tons of lithium iron phosphate cathode 2017

were restructured to form the new Changyuan Lico.materials 30000 metric tons of precursors and 5000 metric tons of waste battery recycling.Became a directly managed subsidiary of the Group

Leveraging the long-term resource security advantages and full-industry-chain strengths in nickel cobalt

2018 Successfully introduced equity capital of RMB 1.7 billion from 11 strategic

manganese lithium and other key materials under China Minmetals Corporation the Company has

investors including Guoxin SAIC and BAIC

established robust R&D capabilities through quality-focused operations talent aggregation and dedicated

research. It has mastered advanced technologies including precursor synthesis cathode material production The Company completed the shareholding system reform and was renamed as

and spent battery recycling recognized as a National Intellectual Property Advantage Enterprise and a Hunan Changyuan Lico Co. Ltd.National High-Tech Enterprise held 161 patents and operated both a National-level Enterprise Technology 2019 Implemented an employee stock ownership plan with 126 employees investing

Center and a Postdoctoral Research Workstation. The Company's products represent the development RMB 183 million to hold 4.07% of the Company’s shares

direction of high-performance lithium-ion battery cathode materials. Single-crystal ternary and high-nickel

materials enjoy a high reputation in the industry and the product technology is at the international advanced 2021 Successfully listed on the STAR Market (Stock Code: 688779)

level. The Company has acquired certifications of ISO 9001 Quality Management Systems ISO 14001

Environment Management Systems ISO 45001 Occupation Health and Safety Management Systems ISO

2024 Renamed as Minmetals New Energy Materials (Hunan) Co. Ltd.

50001 Energy Management Systems ISO 27001 Information Safety Management Systems IATF 16949

Automotive Quality Management System and IPR Management System.

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ESG Management

Honors in

2024 Governance

Minmetals New Energy has established a three-tier ESG management system comprising "Decision-Making

of Board of Directors – Strategy Committee Management – ESG Working Group Execution" achieving

S t a t e - O w n e d A s s e t

High-Quality New Energy Transaction Compliance a well-defined efficient and collaborative organizational structure to provide solid governance for ESG

Enterprises in China in 2024 Model Enterprises in 2024 Enterprise with Revenue Exceeding RMB 10 Billion

initiatives.Level Personnel Responsibilities

Identify and evaluate the Company’s ESG risks formulate

Best Corporate Governance Board of Directors ESG-related guidelines policies systems and goals review

Award for Listed Companies May Day Labor Medal Award of Affiliates proposals and make decisions on ESG-related matters and

in 2024 Strategic Partner of the Year 2024 Directly Under Hunan Province Decision-making organ

supervise and appraise the practice of ESG-related matters.Implement BoD’s ESG-related decisions and policies

BOD’s Strategy examine the Company’s ESG risks carry out and promote

Committee specific ESG matters and regularly report to BoD about the

The Management

progress of ESG-related matters.Regular collection reporting and review of ESG information;

ESG Working Group Focus on improving the efficiency of ESG data management

and control while enhancing the effectiveness of ESG efforts

Executive Level

ensuring their efficient execution and implementation.

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StrategyThe fundamental principle of the Company is to “keep developing cathode materials for lithium-ion batteries Promoting Industry-finance Integration Continuouslyas the main business adhere firmly to diversified industrial distribution policy and insist on the globaldevelopment direction”. The Company’s strategic positioning is to become “a new energy material supplier The Company has strong financing capabilities with access to diverse equity and debt financingwhich is first-class in China and well-renowned in the world”. Guided by market orientation and based on instruments which will effectively support its technological advancement capacity expansion

precise market analysis the Company allocates resources rationally defines its future development path and and rapid business growth.formulates its development strategy by taking into account both internal and external environments as well as

its own strengths. Implementing a Cost-first and Technology-first Strategy

Constructing and Improving the Business Portfolio Costs construct a core competitiveness of a company. We keep pushing forward total cost

management and control plan carefully on budgets and expenditures to ensure that each penny is

Aiming to drive diversified development in the cathode materials industry the Company is

spent wisely to play a better role and put an end to waste.strengthening its deployment of cutting-edge products based on its existing businesses in ternary

cathode materials lithium iron phosphate (LFP) cathode materials lithium cobalt oxide (LCO)

Technology innovation is the fundamental guarantee of a company’s competitiveness. The

cathode materials and spherical nickel. It is actively building an integrated industrial chain

Company keeps investing on technological R&D and optimizing its core products. Active efforts

covering raw material security material production and recycling improving its overall industry

have been made to develop cutting-edge products and explore future technological directions.layout and enhancing its comprehensive competitiveness and influence in the sector.Stabilizing Domestic Market and Going to the World

The Company adheres to its world-class mission and responsibility. Building on the existing

stable partnerships with current customers it continues to expand collaborations with top-tier

domestic power battery manufacturers while strengthening its presence in the international

market by actively competing and engaging with global peers. Beyond cooperation of production

and sale and technical research and development cooperation the Company explores diversified

approaches to establish strategic alliances with key partners.

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Risk Influence and Opportunity Management Indicators and Targets

Issue Expected Risks and Opportunities Countermeasures Presented by AwardsAward Title

The Company will continuously optimize

the quality inspection and control system

Product quality risks and inadequate

Products and advance qual i ty information system

after-sales handling may lead to

Services development promote a quality-centric

customer attrition. CLS

culture and improve product after-sales

services.ESG Pioneer Award

The Company will adopt the mitigation

measures including implementing anti-

Technical risks and management

Data security and leakage systems performing regular system

risks may lead to customer privacy

customer privacy updates enhancing employee awareness

breaches resulting in customer churn Communication with Stakeholders

protection of data security protection and conducting

and potential lawsuits.penetration tests along with emergency

response drills. Stakeholders Stakeholders Expectations Communication and Feedback

Supply disruptions inventory risks The Company will strengthen supply

Regulatory compliance Improve compliance system

and other factors may compromise chain management practice responsible

Supply Chain in business practices Strengthen anti-corruption and

the stability of the Company's supply procurement diversify supply chain

Management Integrity construction integrity education and training

chain thereby affecting product structures and adopt digital traceability Government and Intellectual property Intellectual property protection

Regulatory Agencies

delivery. platforms. protection system

T h e C o m p a n y w i l l i n c r e a s e R & D Improving corporate Enhancing operation management

Technologica l d i s rup t ion r i sks governance level

investment and strengthen collaborations

Innovation-driven and talent shortage/attrition risks Protecting shareholders’ Investor research and exchange

optimize R&D fund management enhance

development m a y c a u s e c o m p a n i e s t o l o s e rights and interests Publishing periodic report interim

ta len t acquis i t ion and development Shareholders and Investor relations announcement and performance

competitiveness in the industry.programs and expand technology reserves. Investors management presentation

Information disclosure Overall risk management

Risk management

Combating

For details refer to the Combating Climate Change section.Climate Change

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Stakeholders Stakeholders Expectations Communication and Feedback Material Issues

Minmetals New Energy places high importance on the expectations and demands of stakeholders. Based on

Technological R&D management system the two dimensions of "financial materiality" and "impact materiality" the Company systematically identifies

Innovation Customer satisfaction survey and

Customers’ rights and complaint channel key ESG issues and future development directions and analyzes and evaluates the importance of the issues

interest Strict governance and

Customers management through a four-step process: "conducting background research → establishing an issue list → assessing and Product quality and

safety Safeguard information security confirming materiality → reviewing and finalizing issues".Analysis Steps Description

Supply chain Improve the purchasing system

management Fulfilling contract with integrity Clarify the Company’s business scope operational areas and stakeholder groups;

Fair competition Signing collaborative agreement Conducting background

identify potential issues through the collection and analysis of policies and

Suppliers and Partners Integrity and mutual research

benefit regulations industry information peer practices and capital market concerns.Through communication with stakeholders such as government and regulatory

Guarantee of basic Establishing fair promotion paths authorities shareholders and investors customers suppliers and partners the

rights and benefits Professional training and career Establishing a list of issues Company gains a full understanding of internal and external stakeholders’ views

Individual development

development Employee satisfaction survey on material issues identifies impacts risks and opportunities and compiles them

Employees

Employee benefits Implementing workplace safety into an issue list.Employee care Routine communication

Financial materiality and impact materiality assessments are conducted

Evaluating and confirming

considering national policies capital market focus areas and industry benchmarks

Green and low-carbon Green transformation development materiality

development to generate material issue analysis results.Green technology innovation

Protecting

Environment the ecological The Management of the Company reviews and confirms the results of the

environment

Issue review and confirmation materiality analysis and defines key objectives and implementation plans for

future ESG management efforts.Taking part in rural Partnership and cooperation

revitalization Consumption aid Following verification by the Company's Board of Directors and external experts Minmetals New Energy

Communities and Public Supporting education Donation for education

has identified the following as material issues which will serve as key priorities for corporate management

and reporting disclosure.

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Corporate Governance

Leading Role of Party Building

Anti-commercial Bribery and Anti-corruption Governance Topics Social Topics Environmental Topics

Compliance and Risk Management

Anti-commercial Bribery and Anti-corruption Data Security and Customer Privacy Protection Environmental Compliance Management

Employees’ Rights and Interests and Employee Care Products and Services

Workplace Safety

Protecting Shareholders’ Rights and Interests Supply Chain Management Pollutant Emissions and Waste Disposal

Anti-unfair Competition

Protecting Shareholders’ Rights and Interests Anti-unfair Competition Products and Services Ecosystem and Biodiversity Protection

Intellectual Property Protection

Employee Training and Development ESG Governance Intellectual Property Protection

Corporate Governance Circular Economy

Pollutant Emissions and Waste Disposal Supply Chain Management Leading Role of Party Building Employees’ Rights and Interests and Employee Care Clean Energy Opportunities

Energy Utilization

Social Contribution ESG Governance Corporate Governance Employee Training and Development Water Utilization

Circular Economy Environmental Compliance Management Innovation-driven Development

Ecosystem and Biodiversity Protection Clean Energy Opportunities Compliance and Risk Management Social Contribution Energy Utilization

Data Security and Customer Privacy Protection

Combating Climate Change Workplace Safety Combating Climate Change

Water Utilization

Innovation-driven Development

important Financial Materiality very important

2324

very important Impact MaterialityEnvironmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

01

Environmental Section

Harmony with Nature Empowerment

through Ecology

Upholding the philosophy of "Green Leadership Low-Carbon Development and Co-Creating a Sustainable

Future" Minmetals New Energy takes proactive steps in energy utilization water resource management

circular economy ecological conservation and climate change action. By establishing robust management

systems setting science-based targets and implementing diversif ied initiatives the Company strives to

balance business growth with energy conservation and carbon reduction. While achieving its own growth it

also contributes to promoting industry green transformation and supporting sustainable development.

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Optimizing Resource Management

Energy Use

Utilization of Waste Heat Waste Pressure and Energy Cascading

The Company places high importance on energy conservation and consumption reduction and has The Company is actively promoting the recovery and utilization of industrial waste heat. Its subsidiary Changyuan Lico

revised and improved nine environmental protection management systems including the Measures for the New Energy invested RMB 960000 to recover waste heat from kiln flue gas in the cathode material workshop which is now

used for heating and hot water supply in office buildings canteens and dormitories saving approximately 6 million kWh of

Administration of Accountability System for Energy Conservation and Ecological Environmental Protection

electricity annually.and the Measures for the Administration of Statistical Reporting of Energy Conservation and Ecological

Environmental Protection by strictly complying with the Energy Conservation Law of the People's Republic

of China the Water Law of the People's Republic of China and the Circular Economy Promotion Law of the Clean Energy and Green Power Trading

People's Republic of China. All subsidiaries have established energy management systems set up dedicated The Company actively promotes the clean and low-carbon transformation of its energy structure vigorously advancing the

energy management departments and formed professional teams for energy statistics and management. The construction of distributed photovoltaic projects. Meanwhile its subsidiaries actively participate in green electricity market

Group strictly adheres to the statistical standards and accounting methodologies for energy consumption and transactions to increase the proportion of renewable energy and reduce the proportion of fossil energy by optimizing power

resource allocation and actively consuming green electricity. Throughout the year the Company consumed a total of 198.93

carbon emissions and conduct statistical analysis of energy conservation and emission reduction monitoring

million kWh of renewable energy and purchased green electricity certificates equivalent to 4.71 million kWh. Renewable

data carry out regular monitoring and evaluation and rigorously implement performance assessments. electricity accounted for 28% of the Company's total power consumption with some products already achieving 100%

renewable energy use.The Company has set an energy conservation target of reducing the comprehensive energy

consumption per unit product by 10% compared to 2022 by 2030. In 2024 the Company

headquarters and two subsidiaries obtained certification of ISO 50001:2018 Energy Management

Case Distributed Photovoltaic Construction

Systems; and the comprehensive energy consumption per unit product decreased by 2% compared

with 2022 achieving the predetermined target for 2024.During the reporting period the two subsidiaries

comprehensively advanced the construction of

rooftop distributed photovoltaic power generation

The Company has taken multiple measures to promote energy conservation and improve energy efficiency:

projects with a total installed capacity of 5.29

MW. By developing and utilizing clean energy

Purchasing Energy-efficient Production Equipment the projects generated a total of 3 million kWh of

electricity annually equivalent to reducing carbon

The Company continues to strengthen procurement controls for key energy-efficient equipment. For newly purchased

dioxide emissions by 1577 metric tons.energy-efficient equipment in new renovation or expansion projects it is required that the bidding documents and contracts

explicitly state that the energy efficiency of the purchased equipment must meet Level 2 or above standards.

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Intelligent Workflow

Case Special Party Lecture on Environmental Protection

The Company has established a comprehensive intelligent system including a manufacturing execution system warehouse

management system automated material handling system and production reporting system. The operational safety and Liuquan Hu Par t y Secretar y and Chairman of the Company delivered a special par t y lecture

production efficiency are enhanced through intelligent functions such as automated material requests AGV cart delivery entitled "Reviewing General Secretary Xi Jinping's important guidelines on workplace safety and Xi

real-time positioning & tracking and anomaly alerts. Jinping Thought on Ecological Civilization so that the concepts of safety and green development

can be internalized".Green Office

The Company is fully committed to promoting energy conservation and green office initiatives striving to create an

environmentally friendly workplace. Regarding air conditioning usage the Company has set clear temperature limits:

a minimum of 26°C in summer and a maximum of 20°C in winter alongside regular maintenance to ensure energy

conservation operation. For office operations an electronic document management and sharing system has been established

to advance paperless offices. For commuting the Company provides pure-electric shuttle buses and encourages employees to

prioritize public transportation.Green Buildings

Meanwhile the Company actively carries out diverse energy conservation awareness campaigns to enhance employees’

conservation environmental protection and ecological awareness. Firstly during the “Energy Conservation Week” and The newly constructed project of the Company was strictly designed and implemented in accordance with energy

“National Low-Carbon Day” campaigns various subsidiaries organize theme-based activities such as putting up posters conservation building technical standards and specifications featuring photovoltaic panel systems on the roof insulated

and displaying energy-saving and low-carbon promotional videos on cafeteria digital screens; Secondly both online and decorative integrated panels for exterior walls and thermal-break aluminum alloy windows. The subsidiary Changyuan Lico

offline channels including WeChat groups digital display screens banners posters and themed meetings are fully utilized New Energy has implemented sunken green spaces landscape water features with rainwater retention functions and water-

to promote eco-friendly resource-efficient and green low-carbon development concepts and theoretical knowledge. Thirdly saving micro-sprinkler irrigation for green space maintenance. Zoning control and infrared sensing control are adopted for

regular energy conservation and environmental protection training sessions are conducted with such training incorporated public space lighting to practice the concept of green development.into the onboarding programs for new employees.

29 30Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Water Use

The Company is committed to building a water resource-saving enterprise strictly complying with laws and

Recovery and Recycling

regulations such as the Water Law of the People's Republic of China and the Law of the People's Republic of

China on the Prevention and Control of Water Pollution and has established management systems including Additionally it continues to advance the resource recycling of metal renewable resources and improves the recycling

technology for used batteries. In 2024 the Company completed the construction of an intelligent disassembly demonstration

Water Electricity Steam and Natural Gas Usage Management Regulations and Energy Measurement

line for retired power battery packs and achieved stable operation. Simultaneously the Company pushes carbon emission

Management Regulations. By optimizing the precursor production process to reduce water consumption requirements down the supply chain while actively collaborating with circular material suppliers to source recycled inputs.per unit product and adopting water-saving technologies and equipment such as circulating water systems

In line with regulations such as the Measures for the Administration of Solid Waste Idle and Measures for the

high-efficiency cooling devices and MVR systems the freshwater usage and wastewater discharge can be

Administration of Waste Material Disposal Raw Material Pallet Recycling Recycled Pallet Cleaning and Recycled Pallet

minimized. Additionally internal awareness campaigns such as posting water conservation signs in domestic Limit Samples the Company standardizes the recycling and reuse of waste and used pallets to conserve resources.water use areas help enhance employees' awareness of water resource management.Material Usage

Water Conservation Target Water Conservation Results

The Company continuously optimizes the loading specifications in the sintering process increasing the material weight per

Achieve 95% water reuse rate by 2030 Treated 630000 metric tons of wastewater sagger for certain product types thereby reducing sagger consumption and waste generation.Recycled 600000 metric tons of condensate water

Achieved 94.23% water reuse rate

Reduction and Light-weighting of Packaging Materials

Circular Economy Additionally by repurposing and reallocating resources based on bag needs the Company has minimized the use of

aluminum foil bags and bulk plastic ton bags.The Company strictly implements the requirements of sustainable development continuously establishes

and improves the circular economy system in accordance with the Circular Economy Promotion Law of

the People's Republic of China takes various measures to reduce resource consumption minimize waste

generation and emissions and enhance waste reuse and recycling. Firstly implement strict requirements

for material collection prohibit excessive requisition and idle waste. Secondly establish a full life cycle

management system for waste including detailed classification recycling treatment and reuse to promote

resource recovery and maximize resource conservation and utilization supporting the Company's green and

sustainable development.The Company enhances resource utilization and reduces waste generation by recycling sagger and ton bags

fostering the development of an internal circular economy system.

31 32Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Practicing the Thought on Ecological

Holding the 2024 Safety and Environmental Protection Work Conference

Civilization

Environmental Compliance Management

Minmetals New Energy complies with regulations including the Environmental Protection Law of the

People's Republic of China the Environmental Impact Assessment Law of the People's Republic of China

and the Measures for the Administration of Energy Conservation and Ecological Environmental Protection

and has also established a series of management protocols such as the Measures for the Administration

The Company maintains regular communication with local government regulators customers and other

of Accountability System for Energy Conservation and Ecological Environmental Protection and the

stakeholders to understand their expectations and requirements regarding environmental management

Management Practices of Energy Conservation.and promptly incorporates their feedback into the Company's management framework. Additionally the

In order to thoroughly study and implement Xi Jinping Thought on Ecological Civilization and Company has established an effective communication mechanism with neighboring communities actively

comprehensively and accurately implement precise scientific and legal pollution control the Company has monitoring residents' feedback and addressing concerns proactively to prevent any potential inconvenience

established a workplace safety and energy conservation and environmental protection committee and set caused by environmental management shortcomings and earnestly fulfilled the corporate social

up a safety and environmental protection department to be responsible for the implementation of specific responsibility to promote the harmonious coexistence between the enterprise and the community.environmental protection. The Company continues to establish and improve the energy conservation and

In terms of environmental risk management the Company conducts regular identification and updates of

environmental protection accountability system formulates an accountability checklist and signs target

environmental factors and implements corresponding control measures. To efficiently respond to sudden

accountability agreements with subsidiaries to promote their fulfillment of primary responsibilities in this

environmental incidents enhance emergency response capabilities and strengthen the capability to

regard. Various subsidiaries establish a clearly defined and properly allocated energy conservation and

prevent and handle environmental pollution events all subsidiaries have developed Emergency Plans for

environmental protection responsibility system through organizational structure setup and institutional

Environmental Incidents in line with their actual production conditions which have been filed with the

development ensuring responsibilities are assigned to specific positions and individuals. Meanwhile

competent ecological and environmental authorities. In 2024 the Company organized a total of 9 emergency

regular ecological and environmental risk assessments are conducted with corresponding control measures

response drills covering scenarios such as wastewater leaks solution spills and hazardous waste incidents.formulated based on evaluation results forming a comprehensive and efficient energy conservation and

Among these in December the Company jointly conducted a "Fire-Induced Firefighting Wastewater and

environmental protection governance system to ensure standardized and consistent implementation.Solution Leak Emergency Drill" with the Changsha Municipal Ecology and Environment Bureau. These

practical exercises have strengthened the Company's environmental risk awareness and emergency response

capabilities.

33 34Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

optimizing the acoustic environment in surrounding areas. By optimizing exhaust gas treatment facilities

In 2024 the Company and its two subsidiaries successfully maintained and enhancing maintenance emissions of pollutants such as SO2 NOx and dust have been reduced;

Certification of ISO 14001:2015 Environmental Management Systems Hazardous waste is collected by category and stored in designated areas with clear identification labels. A

had no general or above-level environmental pollution incidents no

registration log for inbound and outbound waste is established and qualified agencies are regularly entrusted

penalties imposed by ecological and environmental authorities and

no major environmental compliance violations and completed the to transfer and dispose of the waste. Transfer forms are processed and the resource utilization and reduction

annual environmental management objectives including "zero major management of hazardous waste are promoted in an orderly manner.energy conservation and environmental protection violations zero

environmental administrative penalties compliance with wastewater In 2024 the Company achieved all major pollutant reduction targets with subsidiaries Jinchi Energy and

exhaust gas and noise emission standards and 100% safe disposal of Changyuan Lico New Energy completing their environmental information disclosures in full compliance

hazardous waste". Image: Certification of ISO 14001

Environment Management Systems with regulatory requirements for mandatory environmental reporting.Pollutant Emissions and Waste Disposal Wastewater Pollutant Discharges

Minmetals New Energy strictly complies with environmental protection laws and regulations such as the In terms of wastewater pollutant treatment for the treatment of high-salinity high-NH3-N precursor

Environmental Protection Law of the People's Republic of China and actively promotes comprehensive wastewater such processes as plate-and-frame filtration steam stripping for ammonia removal pH 环境篇山水蕴物生态赋能

and effective treatment of wastewater exhaust gases noise and solid waste. In line with the Company's adjustment MVR evaporation crystallization and reverse osmosis are adopted to recover condensate

practical operations it has established management systems including the Measures for the Administration water to produce pure water and concentrated water is used as supplementary water for cooling

of Accountability System for Energy Conservation and Ecological Environmental Protection Measures for circulating water achieving zero discharge of heavy metal production wastewater. The separated

the Administration of Wastewater and Exhaust Gas Measures for the Administration of Solid Waste and sodium sulfate from evaporation crystallization is sold as a byproduct. For lithium iron phosphate

Measures for the Administration of Noise. The Company maintains a well-documented pollution source log wastewater the treatment process involving flocculation sedimentation + multi-media filtration +

and monitors the real-time operation of all pollution control facilities to ensure effective treatment of various carbon filtration + membrane system is adopted. The treated clean water is reused as makeup water for

pollutants. the cooling circulation system while the concentrated water is further treated by an MVR system for

reuse.The Company has consistently increased environmental protection investments and fully implemented

targeted science-based and law-based pollution control. During the reporting period the Company's energy The Company strictly implements the principles of "separate drainage of rainwater and sewage as

conservation and environmental protection performance continued to improve with all pollutants discharged well as clean and polluted wastewater" to ensure classified treatment and orderly discharge of all water

meeting compliance standards and no sudden environmental pollution incidents occurred. The wastewater is streams. Rainwater is collected through dedicated pipelines and discharged into the industrial park's

comprehensively utilized after advanced treatment achieving pollutant reduction and efficient water resource rainwater system via designated outlets; Domestic sewage from office and living areas undergoes

utilization; Noise-generating equipment is equipped with measures such as vibration-damping bases pretreatment in oil separation tanks and septic tanks before being discharged into the municipal

silencers and sound barriers to ensure compliance with boundary noise emission standards further sewagenetwork through dedicated outlets; Industrial wastewater is collected in each workshop's

35 36Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

collection tank then pumped to the wastewater treatment plant for processing and reuse achieving Waste Disposal

zero liquid discharge of production wastewater.The Company strictly complies with the relevant provisions of the Law of the Law of the People's

In 2024 the wastewater treatment facilities operated efficiently with the Company treating a total of Republic of China on Solid Waste Pollution Prevention and Control and has established internal

630000 metric tons of production wastewater. regulations such as the Measures for the Administration of Solid Waste and the Measures for the

Administration of Scrap Material rigorously implements the requirements for reducing recycling and

safely disposing of solid waste takes measures to reduce the amount of solid waste generated from

63 raw materials processes and management promotes the comprehensive utilization of solid waste metric tons

reduces the harm of solid waste and ensures 100% safe disposal of hazardous waste. Additionally the

Company continuously improves its solid waste classification storage and transportation systems to

ensure standardized waste handling.Exhaust Gas Pollutants For general solid waste all subsidiaries construct general solid waste warehouses in compliance with

the Standard for Pollution on The Storage and Disposal Site for General Industrial Solid Wastes. After

Types of Pollutants Treatment Methods

generation general solid waste is temporarily stored in categorized sections within these warehouses

Ammonia Spray absorption treatment with dilute sulfuric acid

Sulfuric acid mist Spray absorption treatment with alkali solution to ensure standardized and orderly storage.Treatment with sintering plate dust removal bag dust removal cyclone dust

Dust

removal water curtain dust removal and other treatment technologies All subsidiaries have constructed temporary hazardous waste storage facilities in compliance with

Organic exhaust gas Treatment with RTO Incinerator

the Standards for Pollution Control on Hazardous Waste Storage. Hazardous waste is collected by

In line with production facilities and their emission characteristics the Company has installed category and stored in designated zones within dedicated hazardous waste warehouses with clear

complementary exhaust gas pollution prevention and control equipment and conducted regular hazard warning labels posted. An inventory log for inbound and outbound records is maintained

environmental protection risk inspections and implemented immediate corrective actions for identified licensed hazardous waste treatment operators are regularly engaged for disposal and transfer receipts

issues to ensure timely and proper resolution. Daily maintenance and management of the facilities are processed.have been strengthened to guarantee the stable operation of pollution prevention and control systems. Domestic waste and kitchen waste are collected at designated locations and promptly removed by

Additionally the Company routinely commissions qualified third-party testing agencies to perform sanitation services.exhaust gas testing ensuring compliance with air pollutant discharge standards.In 2024 the Company's exhaust gases included 2.08 metric tons of

particulate matter 1.28 metric tons of sulfur dioxide 4.62 metric tons of

nitrogen oxides 0.48 metric tons of ammonia gas and 0.37 metric tons of

sulfuric acid mist.

37 38Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Ecosystem and Biodiversity Protection

Noise

The Company strictly complies with the relevant The Company strictly conducts environmental impact assessments for new renovated and expanded

provisions of the Law of the People's Republic of China projects in full compliance with the Environmental Impact Assessment Law of the People's Republic of

on the Prevention and Control of Noise Pollution and has China and the Regulation on the Administration of Construction Project Environmental Protection. All

established an internal Measures for the Administration projects meet the requirements for ecological conservation redlines environmental quality standards

of Noise has implemented a noise monitoring mechanism and resource utilization limits and none are included in the Negative List for Market Access.and adopted comprehensive noise reduction measures to

strictly control noise generation and transmission at both The Company strictly complies with biodiversity protection requirements. All construction projects are

the source and propagation stages. Meanwhile it actively located outside ecological conservation redlines and environmentally sensitive areas and exclusively

promotes noise reduction upgrades to continuously improve on industrial land. The production activities and products involved have minimal impact on regional

noise prevention and control effectiveness striving to flora and fauna biodiversity. All construction projects of the Company have achieved 100% greening

create a quiet and harmonious surrounding environment. coverage. Notably the newly built projects of Changyuan Lico New Energy have added over 900000

camellias azaleas and osmanthus trees in the past two years along with more than 60000 m2 of turf

grass. The ornamental ponds have been stocked with over 300 carp and crucian carp.Case Noise Management

Vegetation Protection

To enhance intrinsic environmental protection

standards the subsidiary Changyuan Lico New

Energy conducted a comprehensive inspection

of all noise sources within the plant area with

continuous monitoring of noise-generating

equipment designated zones and factory

boundary noise levels.An investment of RMB 4.83 million was allocated to install silencers and noise barriers for noise-

emitting equipment and affected areas. After renovation the noise emissions at each factory

boundary met the standard and the sound environment quality in the surrounding areas was

further optimized.

39 40Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Combating Climate Change Personnel Responsibilities

ESG Working Group

(comprising the Strategic

Climate Change Governance System ? Responsible for planning and promoting work related to Planning Department Safety

combating climate change based on the requirements of

and Environmental Protection

The Company has established a governance framework structured as "Board of Directors - Strategy stakeholders and the Company's sustainable development Department Technology

requirements.Committee of Board of Directors - ESG Leading Group - ESG Working Group". It is also equipped with Promotion Department and

professionals possessing climate change-related expertise who are proficient in applying climate verification subsidiaries)

tools research methodologies and relevant regulations to provide clear direction and specialized guidance

for the Company's climate change response. The Company has developed the "2023-2035 Sustainable Development Plan" based on stakeholder input

and practical considerations thoroughly addressing sustainability-related risks and opportunities such as

Personnel Responsibilities climate change. The plan covers carbon emissions management product carbon footprint management

energy management and other key areas. Meanwhile the Company has incorporated energy conservation

? Responsible for identifying and assessing climate change- and carbon reduction as binding indicators into the annual performance evaluations of all subsidiaries

related risks of the Company formulating guidelines policies

linking them directly to annual incentive bonuses. Each year the Company organizes selections to recognize

systems and targets for climate change response reviewing

Board of Directors

and making decisions on material issues related to climate outstanding departments and individuals in energy conservation and environmental protection awarding

change and overseeing and evaluating the Company’s those who have made remarkable achievements in implementing energy-saving emission reduction and

climate-related practices. carbon reduction initiatives.Climate Change Strategy

? Responsible for overseeing the implementation of the Board

of Directors' resolutions and policies regarding climate change The Company has incorporated green and low-carbon development into its overall development strategy

BOD’s Strategy Committee

response reviewing the Company's climate-related risks and and the "15th Five-Year Plan" committed to becoming a "resource-efficient and environmentally friendly"

regularly reporting progress to the Board of Directors.enterprise. It actively and steadily advances the goals of carbon peak and carbon neutrality integrating

climate change risk management processes into its overall risk management framework actively assess

identified climate change risks and develop effective management measures to ensure that identified climate

? Responsible for leading the execution of the Company's change risks are within a controllable range. In addition the Company has fully implemented energy

climate change strategy and management plans identifying

conservation and carbon reduction initiatives to enhance efficiency tapping into the potential for pollution

climate-related risks to the business assessing their potential

ESG Leading Group

impact and developing mitigation measures; and carbon reduction. It has carried out in-depth activities such as process optimization equipment upgrades

? Evaluate the climate change performance of various and management improvements to increase the proportion of renewable energy supply and advance the

departments and coordinate improvement initiatives. energy efficiency improvement of key energy-consuming equipment.

41 42Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Risk Description Duration of Impact Management Measures Risk Description

Duration of

Impact Management Measures

With the growing demand for clean Investment in R&D. Enhance R&D of

Promote sustainable development. Growing energy lithium battery companies Medium- and high-performance low-cost lithium

Energy conservation and emission demand for

Extreme may expand their market in areas long-term battery technologies to meet market

may have an impact on supply chains and reduction measures are taken to clean energy

weather and such as batteries. demand.production facilities causing asset losses improve resource utilization efficiency

changes in Short-term

and even potentially leading to employee and reduce carbon emissions and

precipitation Increase the use of clean energy Develop photovoltaic power

safety accidents. natural disaster emergency response Medium- and

patterns Energy use and further reduce energy generation projects and procure

mechanisms are continuously long-term

procurement costs. green electricity.improved.Climate-related technological R&D and innovation. The Company

Technology-

The adjustment of climate policies may innovation may bring new Medium- and will invest in R&D to develop more driven

affect corporate production and operations; Strengthen climate risk assessment. development opportunities for the long-term environmentally friendly and efficient innovation

Local governments will implement stricter Closely monitor regulatory and policy Company. products and technologies.environmental protection regulations changes related to "Dual Carbon"

Policies and imposing rigorous limits and emission Medium- and goals (peaking carbon emissions Active disclose. Regularly publishing

laws risks quotas on wastewater exhaust gases long-term and achieving carbon neutrality) ESG reports of the Company and

and solid waste and greenhouse gases. assess climate change vulnerabilities Taking active measures to combat disclosing information on the status

Brand image Medium- and

Compliance with such new rules and and develop corresponding risk climate change helps strengthen of the Company's energy saving

enhancement long-term

standards will increase the Company's management strategies. corporate social reputation. and emission reduction objectives

regulatory costs. enhancing the Company’s green

image.Supply chain diversification. Ensure

the stability of raw material supply Expand production scale. Improve

The widespread adoption of

by identifying alternative materials or

The key raw materials for lithium-ion Development production efficiency and ensure

partners; Collaborate with upstream electric vehicles will drive Medium- and

Raw material batteries may face supply shortages or of electric that the supply of lithium batteries

Medium-term and downstream partners to jointly demand for high-performance long-term

supply price volatility due to climate change- mobility keeps pace with the growth of the

implement carbon reduction initiatives lithium batteries.related resource constraints. electric vehicle market.establish coordination mechanisms to

enhance the value chain's resilience

to climate change.Energy efficiency improvement. Short term: Refers to the period within 1 year (inclusive) after the end of

Conduct regular inspections of the Company's sustainability reporting period.D e f i n i t i o n o f s h o r t

production facilities to identify potential Medium term: Refers to the period from 1 year to 5 years (inclusive) after

The energy demand in manufacturing medium and Medium-

Energy Medium- and hazards and promptly upgrade the end of the Company's sustainability reporting period.processes may increase due to climate and long-term

consumption long-term equipment as needed; Optimize

change leading to higher production costs. Medium- and long-term：Refers to the period beyond 5 years after the end

production processes to reduce of the Company's sustainability reporting period.energy consumption and improve

energy efficiency.

43 44环境篇 Environmental Section: Community Section: Governance Section:

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

山水蕴物 生态赋能 Harmony with Nature Spreading Genuine Compassion Multi-stakeholder Co-governance for

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Scenario Analysis

Climate Targets The Company employs scenario analysis to assess carbon footprints under different scenarios. The analysis

is conducted using SimaPro with a self-designed scenario framework that includes one baseline scenario

2023 2035 2050 and multiple pressure scenarios of varying degrees. Among them the baseline scenario serves as a reference

under business-as-usual conditions without additional influencing factors while the pressure scenarios

Achieve 100% green electricity Reduce organization-wide CO Achieve carbon neutrality thoroughly incorporate policy requirements. The Company will continue to improve the data collection 2

for select products. emissions by 50% compared to across the value chain. and management system for climate-related risks to enhance data accessibility and accuracy. The Company

the baseline year (2022). will further refine stress testing models and validate them across multiple dimensions to improve their

applicability and precision thereby enabling more accurate assessment of climate change impacts on the

business operations.Given that the clean energy mix directly impacts carbon emissions from electricity use the Company

calculated climate change scenarios for 20% 50% and 100% green electricity adoption respectively. In

Climate Adaptation terms of recycled material usage the Company has established and continuously optimized scenario analysis

to compare the climate change impacts at different recycling ratios. When the recycled material ratio reaches

The Company's long-term climate adaptation is impacted by energy supply and low-carbon transition

50% the carbon footprint of cathode materials and batteries is reduced by 20.56% and 10.37% respectively.

while downstream demand shifts and raw material supply fluctuations disrupt its business model

concurrently exerting climate-related effects. In terms of energy management the Company is

increasing the use of renewable energy by constructing distributed photovoltaic facilities. In terms

of supply chain optimization the Company is working with suppliers to develop contingency plans

and diversify supply channels. In terms of product R&D the Company focuses on developing

environmentally friendly and efficient materials. In terms of policy trends evolving regulations

on renewable energy and carbon emissions particularly the EU's new battery regulations will

impact costs and demand and the Company is closely monitoring these developments. In terms of

procurement the Company is adjusting its strategy by prioritizing recycled materials and optimizing

production processes to improve capacity utilization. Additionally the Company monitors carbon

emission scenarios based on green electricity usage and recycling rates and formulates corresponding

strategies.

45 46Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

GHG Emissions Management The Company fully utilized the online energy monitoring system and MES energy management system

to track electricity and power consumption in real time. By analyzing and evaluating energy usage across

The Company is firmly anchored in the strategic direction of green and high-quality development adhering various sectors it provided decision-making support for production scheduling and off-peak power

to a systematic approach to balance development and carbon reduction actively and steadily advances carbon consumption thereby enhancing the informatization and precision of energy management and achieving

peak and carbon neutrality initiatives. With the of target of achieving carbon peak before 2030 the Company cost reduction and efficiency improvement. Various subsidiaries incorporated energy consumption per unit

will solidly and deeply promote the carbon peak action shift from energy consumption "dual control" to product into performance evaluations conducting regular monthly monitoring and assessments to strengthen

carbon emissions "dual control" continue to deepen the green and low-carbon transformation of energy and production departments' accountability for energy conservation and carbon reduction.the green and low-carbon recycling transformation and formulate the "2024 Carbon Peaking Action Plan" to

accelerate the achievement of the Company's carbon neutrality goal.The Company has established a "Dual Carbon" Leading Group with the Party Secretary and Chairman Case Subsidiary Jinchi Energy's Emission Reduction Effectiveness

serving as the leader. The Leading Group has formulated the 2024 Work Plan for Carbon Peak Action

Subsidiary Jinchi Energy has consistently implemented waste heat recovery from the condensate

clearly defining the responsibilities of all departments. Focusing on three key areas -process optimization

water of the deammoniation tower reboiler. By utilizing this residual heat to preheat wastewater the

equipment upgrades and management enhancement the Company is implementing a comprehensive energy

steam consumption is reduced by 5000 metric tons annually equivalent to reducing CO emissions by

conservation and carbon reduction efficiency initiative. During the reporting period the Company organized 2

1522 metric tons.

two energy conservation and carbon reduction meetings to explore the potential of energy conservation and

carbon reduction. Throughout the year multiple measures were implemented including rooftop distributed

photovoltaic power generation waste heat recovery from kiln flue gas energy conservation upgrades for

circulating water pump motors and optimization of gas venting at oxygen stations resulted in a reduction of

CO2emissions equivalent to 11648 metric tons of standard coal effectively controlling and lowering energy

consumption while progressively decreasing total carbon emissions and intensity. The Company continued to

optimize and improve its energy conservation and carbon reduction management system steadily enhancing

the level of control in this area. It clarified the responsibilities and work requirements for monitoring

measurement statistics and reporting of energy conservation and carbon reduction across all departments

and established a monthly reporting system for production energy consumption and carbon emissions.

47 48Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Case Subsidiary Changyuan Lico New Energy's Emission Reduction Effectiveness

The subsidiary Changyuan Lico New Energy has implemented energy-saving and carbon reduction

measures such as 6 sets of three-layer kilns recovery of waste heat from kiln flue gas energy

conservation renovation of circulating water pump motors optimization of gas venting in oxygen Meanwhile the Company conducts annual carbon emissions accounting in accordance

production stations and renovation of RTO incinerators for lithium iron phosphate tail gas treatment with the Guidelines for Accounting and Reporting of Greenhouse Gas Emissions for Other

facilities resulting in a total reduction of 8549 metric tons of carbon dioxide emissions. Industrial Enterprises. Greenhouse gas inventories are compiled based on the ISO 14064-

1:2006 standard with active efforts to assess the carbon footprints of key products. Carbon

footprint certifications have been completed for products including LY318S LY336

LY346 L5503 and L6509. The Subsidiaries Jinchi Energy and Changyuan Lico New

Energy's Lugu Base were awarded the title of "National Green Factory" in 2022 and 2020

respectively.

49 50Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

02

Community Section

Spreading Genuine Compassion

Protecting Deeds of Kindness

Employee Care: Minmetals New Energy is committed to fostering a fair recruitment environment

safeguarding employee rights through diversif ied initiatives nur turing talent development and

providing compas sionate wor kplace suppor t . Cus tomer Right s Prote c tion: The Company has

established a robust qualit y management system and implement s stringent data securit y and

privacy protection measures. R&D: With a well-structured system the Company drives innovation

while strengthening intellectual property protection. Supply Chain Management: Through rigorous

governance risk mitigation and diversified strategic partnerships the Company has built a highly

eff icient and stable supply chain. In addition the Company is actively engaged in philanthropic

initiatives contributes to rural revitalization demonstrating its commitment to societal well-being.

51 52Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Building a Happy Workplace

148/7.17%

488/23.64%

665/32.22%

Over 50

Practicing Fair Employment Female 30 and below

The Company strictly complies with laws and regulations such as the Labor Law of the People's Republic of

China and the Labor Contract Law of the People's Republic of China and has established a series of internal

By gender By age

policies including the Company Recruitment Management Regulations. The Company's recruitment process

is transparent and well-defined consistently adhering to the principles of openness fairness and impartiality.The Company upholds equality and respect prohibiting discrimination against any candidate based on age Male

gender race or other factors. In the recruitment process the Company emphasizes diversity and inclusion 1576/76.36% 31-50

encouraging talents from various backgrounds and disciplines to join the Minmetals New Energy team 1251/60.61%

through channels such as social recruitment campus recruitment and internal open competitions.Total number of in-service employees/person

2064134/6.49%

228/11.05%12/0.58%20/0.97%

Ph.D. Administrative Master’s Financial personnel

degree personnel

Ethnic minority employees Proportion of ethnic minority employees 593/28.73% 1280/62.02%

111 5.38% Technical personnel Production By degree of By profession personnel

education

Bachelor’s

degree or 19/0.92%

Employees with disabilities Proportion of employees with disabilities below

Sales personnel

50.24%18/0.87%1824/88.37%

Procurement personnel

Demobilized military personnel employed Proportion of demobilized military personnel employed

321.55%

53 54Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Safeguarding Employees’ Rights and Interests

Health and Safety

The Company places high priority on employee health and workplace safety actively promoting

Remuneration and Benefits health awareness conducting occupational health training and fostering a healthy work environment

The Company has established standardized documents including the Measures for the Administration to enhance employees' occupational health literacy. The Company headquarters has established the

of Company Compensation and the Measures for the Administration of Employee Performance General Emergency Response Plan for Public Emergencies the Measures for the Administration

Assessment to provide industry-competitive salaries and ensure timely and full payment. The of Public Emergencies Response and the Measures for the Administration of Emergency Capacity

Company respects the value differences among various positions and implements a differentiated Building for Workplace Safety forming a "1+1" emergency regulatory framework for public

compensation system tailored to different job categories establishing a scientific reasonable and emergencies. The two subsidies have respectively established their Emergency Response Plans for

effective salary distribution model with a dynamic adjustment mechanism. In response to employee Workplace Safety Accidents including comprehensive emergency plans specialized emergency

needs the Company ensures that attendance records performance evaluations and disciplinary plans and on-site disposal measures. The Company has acquired certification of ISO 45001:2018

actions are all confirmed by employee signatures. Employees reserve the right to appeal in case of any Occupational Health and Safety Management Systems.objections. The Company has solidly advanced the three-year campaign for fundamental improvements in

The Company continuously enhances its scientific research development and technological workplace safety continuously pursued the dynamic clearance of major accident hazards and

innovation capabilities stimulates the professional enthusiasm initiative and creativity of technical carried out special rectifications in key areas such as fire safety and subcontractor construction to

personnel and provides rewards for various scientific and technological innovation achievements as actively promote technological support for safety and environmental protection. The Company has

well as academic outputs. It also offers core talent mid-to-long-term incentive plans and education and continuously improved the safety management system made efforts to strengthen the dual-prevention

training sponsorship programs. mechanism established an assessment and evaluation system for safety management and improved

channels for reporting workplace safety concerns thereby enhancing the effectiveness of safety

The Company is committed to building a comprehensive and multi-tiered employee benefits system. and environmental protection management. The Company has organized thematic activities such

In strict compliance with national policies and regulations the Company provides social insurance as "Workplace Safety Month" and "Fire Safety Month" and conducted emergency drills including

housing provision fund and supplementary commercial medical insurance effectively safeguarding hazardous chemical leakage and fire evacuation emergency response drills targeting key risks under

employees' livelihood stability and enhancing their sense of professional security and belonging. the Company's control effectively raising employees' safety and environmental protection awareness.The Company has strengthened occupational health management by organizing pre-employment

on-the-job and post-employment occupational health examinations established occupational

health management files and carried out "Family Doctor" activities in enterprises to deepen the

establishment of "Healthy Enterprise".

55 56Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

In 2024 the Company organized a total of 183 safety training sessions including specialized training Safety Training

for confined space operations occupational health programs post-holiday resumption safety education

guardian training for special operations and case studies on production workplace safety accidents

with a total duration of 366 training hours. The subsidiary Changyuan Lico New Energy partnered

with the Hunan Red Cross Society and Lei Feng Community Hospital to conduct "Emergency Rescue

Knowledge and Skills Training" further enhancing employees' safety awareness and strengthening the

foundation of safety mindset.The Company has set the occupational health and safety production management goals of zero

general and above workplace safety accidents zero new cases of occupational diseases and no serious

First Aid Training

violations of the Hunan Provincial Social Security Comprehensive Management Regulations. In 2024

the Company recorded zero general-or-above-level workplace safety accidents (as defined by national

standards) and no new occupational disease cases. Its subsidiary Changyuan Lico New Energy

was awarded the title of "Hunan Provincial Healthy Enterprise" a government-endorsed honor for

exemplary workplace health management.Case Fire emergency evacuation drill for the testing building and the launch ceremony of the "Workplace Safety Month" held by the Company

Democratic Management

Minmetals New Energy held the launch ceremony for "Workplace Safety Month" under the theme

'Safety for Everyone Emergency Preparedness for All - Keeping Escape Routes Clear". The Company The Company continues to strengthen democratic management through measures such as holding

organized a fire evacuation drill and a hands-on fire extinguisher training session in the testing congress of workers and staff listening to annual work reports completing elections for congress of

building to comprehensively evaluate employees' emergency escape and self-rescue capabilities in workers and staff and soliciting opinions and suggestions on annual activity plans. Meanwhile the

case of sudden fires and strengthen the practical response and coordination skills of the Company's Company's trade union leveraging subsidiary initiatives has focused on lean operation improvements.fire rescue team thereby enhancing the overall emergency preparedness of the organization.By implementing practices like whole-staff participation and closed-loop process management

it has carried out comprehensive lean innovation activities to foster a deeper sense of ownership

among employees. By strengthening democratic management the Company has not only enhanced

employees' sense of identity and belonging but also laid a solid mass foundation for its stable

operations.

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Minmetals New Energy's 2024 "LICO Rising Star" Training Camp

Minmetals New Energy Holds a Congress of Workers and Staff Case Successfully Concluded

The 2024 "LICO Rising Star" Training Camp of Minmetals New Energy officially commenced. Zhang

Zhen General Manager and Deputy Party Secretary of the Company attended the opening ceremony

and delivered a lecture to the new employees. The new employees underwent an intensive one-week

systematic training program covering various aspects such as the Company's development strategy

corporate culture industry trends and team building.Talent Cultivation

The Company adheres to the philosophy of "prospering through talent" genuinely focusing on employee

development. It has implemented the Measures for the Administration of Employee Training and Education

along with supporting measures. In accordance with the nature and characteristics of different positions the

Company provides multiple career development pathways including the management ladder professionals

ladder specialized business ladder and operation ladder. A diversified career development system has been

established allowing for vertical promotion horizontal job rotation and mobility toward key positions. A

scientific talent evaluation and selection mechanism has been established to actively promote talent pipeline

development. A reserve management trainee program is implemented creating extensive growth platforms Humanistic Care

for employees.The Company places high importance on employee care and provides support through various initiatives

such as visiting employees in financial difficulties organizing mental health seminars and conducting

The Company has implemented specialized talent development programs such as the "Elite 300" Talent women's health knowledge workshops. In 2024 the Company organized sports events such as tug-of-war

Program LICO Rising Star Program and Skilled Talent Cultivation Initiative. Through measures like job and badminton as well as celebrations for the Spring Festival and Lantern Festival as well as a series of

rotation mentorship programs and skills competitions the Company fully unlocks employees' potential activities for "International Women's Day" and a "Family Open Day" event for employees’ children during

empowers their career growth and injects vitality into long-term corporate development building a high- the summer vacation. These initiatives significantly boosted staff morale and enhanced employee satisfaction

quality talent pool to support the Company's high-quality growth. and well-being.

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Series of Activities for International Women's Day

"Feather" and "LICO" Soar Together Chasing Dreams

Summer Research & Learning Program

"Start from the Heart Empower the Journey"

Mental Health Lecture Spring Festival Celebration Performance for Employees' Children + Family Open

Day

Lantern Festival Event

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Protection of Customers’ Rights Strategyand Interests The Company upholds the quality management policy of “crafting products and services that exceedcustomer expectations with a spirit of craftsmanship”. It consistently adheres to the service philosophy

Product and Service Quality and Assurance of observing the market with dedication and treating customers with sincerity. We are dedicated

to meeting customer needs and producing products and services that go beyond the customer

Governance expectations with professional attitude standardized management precision control unceasing

The Company continuously improves its product quality management system by establishing a quality innovation of the management mode and the drive for continuous improvement to realize mutual

and safety accountability framework that covers top management management representatives quality growth with customers.personnel and employees. The top management assumes primary responsibilities including formulating

quality strategies and implementing the quality and safety accountability system. The management

Risk Influence and Opportunity Management

representative is responsible for establishing the quality policy and objectives planning the quality

management system exercising the one-vote veto power on quality issues and implementing quality

In quality inspection and control systems the Company establishes dedicated departments and builds

assessment and incentives. Quality management personnel are tasked with strengthening process quality

professional teams to cover the entire business process through "systems + technologies + standards".control organizing quality analysis correction and improvement as well as enforcing the quality and

For quality informatization development the Company implements a laboratory information

safety responsibility system. Production and inspection personnel bear direct responsibility for ensuring

management system to address critical challenges enhancing supervision efficiency and work

product manufacturing quality.informatization levels. Under the dimensions of quality culture and customer service the Company

The Company has established multiple relevant institutional documents for products and services based on conducts "Quality Month" activities establishes risk contingency mechanisms complies with relevant

the ISO 9001:2015 and IATF16949:2016 quality management system standards to ensure delivery quality regulations and forms dedicated service teams to enhance customer service quality. The Company is

and service excellence. making multi-dimensional efforts to comprehensively enhance product quality management laying a

solid foundation for high-quality development.Product and Service

Management Systems Product Recall System After-sales Service System

Customer Complaint

Handling System The Company places high importance on product after-sales service has established the Customer

Production Control Customer Feedback Measures for the Customer Feedback Feedback Control Procedures and Measures for the Administration of Sales and set up a product

Procedures Control Procedures Administration of Sales Control Procedures recall leading group. Should any product be found non-compliant with standards or posing safety

Supplier Management Customer Manager risks the Group will immediately halt sales and initiate proactive recalls and develop corresponding

Control Procedures Mechanism

Implementation Rules solutions at the same time. The Company has established a 24-hour service hotline to promptly

Nonconforming

Product Control Customer Feedback respond to complaint calls efficiently allocate resources and categorize responses based on the

Procedures Control Procedures urgency level of complaints. Designated personnel are required to provide solutions within specified

time. Major and above-level complaints will be included in the service quality assessment.

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Complaint information is synchronized to the manufacturing base for analysis and corrective actions. Case Quality Control Compliance Promotion

By assigning tasks to localized service teams through the system fully authorizing channel partners

and processing claims online the resolution efficiency is improved. In September 2024 Minmetals New Energy launched diverse and substantial "Quality Month"

activities under the theme "New Name New Chapter; Quality First Building a New Journey".Zhang Zhen the Company’s General Manager and Deputy Party Secretary attended the event and

I指nd标ic与a目to标rs and Targets delivered a speech urging all employees to fully understand the profound implications of high-

quality development in the new phase accelerate the thorough implementation of comprehensive

In 2024 the Company experienced no major quality management and continuously enhance the core capability of creating value through quality.quality incidents work-related fatalities or During the "Quality Month" campaign the Quality Assurance Department of the Company and the

equipment accidents. Meanwhile the Company Quality Departments of subsidiaries conducted targeted thematic training sessions covering project

regularly conducts proactive product testing (both development supplier management process control and customer requirement dissemination

internal and external) and has obtained multiple achieving "full coverage" of quality awareness promotion.certifications by quality management systems

standards ensuring operational efficiency in

corporate management. Certification of IATF 16949:2016 Quality Management System

As of the reporting period end the Company has obtained certifications under IATF 16949:2016

Quality Management System and ISO 9001:2015 Quality Management Systems with two laboratories

and testing centers accredited by China National Accreditation Service for Conformity Assessment

(CNAS).

Company Wins the 3rd Changsha Mayor's Quality Award

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Data Security and Privacy Protection In 2024 the Company formulated the following strategic objectives:

Governance

The Company strictly complies with relevant laws and regulations including the Data Security Law

of the People's Republic of China the Personal Information Protection Law of the People's Republic

of China and the Cybersecurity Law of the People's Republic of China and carries out its operations Continuously improve Promulgate the Regularly promote Optimize the data Promote the

accordingly in accordance with its internal policies such as the Measures for the Administration of the information Measures for the the operation of backup strategy to information system

Network and Information Security and the Measures for the Administration of Information System security management Administration of anti-leakage system reduce the risk of protection

system and Information System and reduce the risk data loss

Data. The Company has established a Cybersecurity and Informatization Committee chaired by the

successfully pass Data to strengthen of data leakage

Chairman of the Board which is responsible for implementing regulatory requirements reviewing the ISO 27001: 2022 the protection of

development plans and institutional standards coordinating major incidents and overseeing certification audit data classification

overall work advancement. For data security management the Company has built a cybersecurity

management system classified security incident levels and clarified division of responsibilities.Risk Influence and Opportunity Management

Strategy The Company has rigorously implemented the Group's key initiatives to "empower operations with

information technology and build a Digital Minmetals" actively advancing digital transformation

efforts focused on intelligent factory construction and smart enterprise operations. Core digital

Based on the characteristics of large production scale and high quality requirements in the industry as

systems such as smart office platforms ERP intelligent warehousing and logistics intelligent

well as the needs of its own high-quality development strategy the Company vigorously transforms

laboratories and production operation platforms have been established achieving seamless integration

and upgrades towards digitization networking and intelligence creates a new capability system

across business functions continuously enhancing data-driven capabilities and digital governance.promotes the formation of new models and formats on the basis of enhancing traditional value

benefits and obtains sustainable competitive and cooperative advantages. Regarding data security the Company conducts annual offensive and defensive drills (red team/

blue team exercises) and emergency response operations with all employees signing responsibility

commitment letters and undergoing yearly performance evaluations. For customer privacy protection

the Company implements a company-wide anti-leakage system to encrypt local data and require

approvals for external transfers while all business entities incorporate privacy-by-design principles

throughout product development lifecycles. These measures effectively safeguard data security and

customer privacy reducing various risks associated with cybersecurity issues.

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Indicators and Targets Refining and Advancing R&D

In 2024 the Company achieved digital coverage exceeding 75% across key business processes and Innovation

marking significant progress in digital transformation. Regarding customer privacy protection the

Company has not received any complaints related to customer privacy infringement or loss of customer R&D Management System

data and no major data security or privacy breach incidents have occurred.Governance

To further enhance R&D efficiency and stimulate employees' innovation enthusiasm Minmetals New

Energy has formulated internal measures for the administration of including the Detailed Rules for

Case Compliance Awareness Campaign for Information Protection

Intellectual Property Management and Detailed Rules for Scientific and Technological Achievements

In April 2024 Minmetals New Energy took the "April 15 National Security Education Day" as Management in accordance with the Patent Law of the People's Republic of China and the Patent

an opportunity to launch a confidentiality awareness month campaign advocating for everyone to Cooperation Treaty to standardize innovation and R&D management.enhance their awareness of confidentiality maintain national security guide cadres and employees to

consciously fulfill national security and confidentiality obligations and improve their ability to counter

espionage and properly carry out confidentiality work. Strategy

The Company has established an in-depth R&D technology system for lithium battery cathode

materials following a development strategy of "mass-producing one generation reserving one

generation and pre-researching one generation". It continues to strengthen its technological layout

in the field of lithium battery materials conducting targeted technology reserves and product

development. Meanwhile it closely monitors R&D trends in new battery material systems seizing

opportunities to maintain and consolidate its industry-leading position in the development of new

energy materials.

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Risk Influence and Opportunity Management

The independently developed "Key Technology and Industrialization of New-Generation High-

Voltage Low-Cobalt Single-Crystal Ternary Materials" and "Development and Industrialization of

The Company has established and improved a comprehensive multi-level and systematic sustainable

High-Power Ternary Cathode Materials" have reached internationally advanced levels.R&D system and innovation mechanism with a strong emphasis on incentive mechanisms for

researchers. The Company encourages technological innovation and provides special incentives for

new product development process technology innovation patents and academic publications.Technical Standards

The standardization efforts have yielded fruitful results with the Company participating in the drafting

Indicators and Targets of a total of 80 implemented technical standards including 11 national standards and 35 industry

standards. The industry standard Green Factory Evaluation Requirements for Lithium-ion Battery

R&D Bases Cathode Material Precursors edited by the Company has been included in China's national-level Green

The Company currently has three bases in Lugu Tongguan and High-tech focusing on the research Factory Evaluation Standards List. Additionally the industry standard Solid-State Lithium-ion Battery

and production of efficient battery materials including ternary cathode materials and lithium iron Cathode Materials spearheaded by the Company has been officially approved under the Ministry

phosphate cathode materials for the automotive power battery market lithium cobalt oxide cathode of Industry and Information Technology's "2024 Fourth Batch of Industry Standard Development

materials for the 3C electronic consumer product market and nickel hydrogen materials for the and Revision Plan" accelerating R&D and application of solid-state battery technologies. In terms

hybrid vehicle market. The Company has established China's first pilot-scale service base for cathode of standard construction the Company continues to make significant R&D investments constantly

materials for power batteries which was recognized as the "Hunan Provincial New Materials Pilot strengthening its standard system framework to empower the standardized development of the

Platform". It possesses a complete set of basic testing facilities covering the entire process from industry.lab R&D to pilot-scale verification. It has obtained multiple qualifications including the National

Enterprise Technology Center and a Postdoctoral Research Workstation and has also received CNAS

Laboratory Accreditation Certificate. Recognitions and Awards

Additionally the subsidiary Changyuan Lico New Energy was recognized as the "Changsha Capacity

Expansion and Upgrading Enterprise R&D Center". This year the Company was awarded two

Innovation Platforms "Excellent Technical Standards" prizes by the National Technical Committee for Standardization of

The Company has achieved remarkable results in R&D and innovation with continuous improvement Nonferrous Metals. Among them the national standard Lithium-rich Lithium Iron Oxide won the

in technological innovation capabilities. All four national and provincial-level sci-tech projects Third Prize in Technical Standards from the National Technical Committee for Standardization of

undertaken by the Company successfully passed acceptance checks among which key projects like Nonferrous Metals and the industry standard Lithium Nickel Cobalt Manganese Oxide received the

the Key Technologies and Management System for Intelligent Disassembly Production Lines of Second Prize in Technical Standards from the same committee. The invention patent titled A Grid-like

Retired Products have been successfully demonstrated in practical applications. Porous Precursor Material and Its Preparation Method and A Cathode Material (202010253246.5) of

the subsidiary Jinchi Energy was approved for the Second Prize of the Hunan Patent Award.

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The "Key Technologies and Industrialization of New Generation High-voltage Ternary Low-cobalt Industry Alliances

Single Crystal Materials" project adopts precise co-precipitation double in-situ coating and other Through the establishment of "project + talent + platform" innovation mechanism the Company

technologies to solve the structural and interface stability problems of medium and high nickel joined the Hunan Solid-state Battery Technology Innovation Consortium and deeply participated in

single crystal materials under high voltage and meet the new generation of power batteries for long eight industry organizations such as Hunan Battery Industry Association actively playing a bridge

endurance ultra-fast charging and long cycle requirements. This product has outstanding innovation role and accurately grasping the development trend of the industry. It invested RMB 230 million

and leading performance and its overall performance has reached the international advanced level in special scientific research funds throughout the year implemented innovative incentive policies

and has been widely recognized by domestic and foreign customers. In addition the industrialization stimulated the innovative vitality of scientific researchers and provided core technical support for the

of a new generation of medium-high nickel low-cobalt and high-voltage cathode materials has high-quality development of enterprises.been achieved with remarkable results. The "Development and Industrialization of High-Power The Company has joined the "Solid-State Battery Industry Innovation Consortium" organized by

Ternary Cathode Materials" project studies the key production technologies of high-specific-weight SASAC as a cathode supply chain participant. The Company has joined various industry associations

low-impedance ternary high-power products focusing on the development of key technologies for and alliances including the Hunan Battery Industry Association Hunan Advanced Materials Industry

morphology synthesis and regulation. This technology not only fills the gap in the market of cathode Association China Power Battery Recycling and Cascade Utilization Alliance National Nonferrous

materials for HEV in China but also breaks the international monopoly on the technology of ternary Metals Standardization Technical Committee Changsha-Zhuzhou-Xiangtan Advanced Energy Storage

cathode materials with high specific resistance and low impedance cultivates a complete industrial Materials Industry Alliance Hunan Advanced Battery Materials and Battery Industry Technology

chain from precursors to cathode materials and can meet the demand for high-rate charge-discharge New Strategic Alliance China Industrial Association of Power Sources and Changsha Association of

performance in the power field with remarkable economic benefits. The overall technology of both Science and Technology for Enterprises and Institutions helping the Company stay informed about

achievements has reached the international advanced level. industry trends and access market intelligence.

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Signing Ceremony of Cooperation Agreement Between Minmetals New 5G Factory

Case Energy and Professor Ma Cheng's Team from USTC Successfully Held

Minmetals New Energy successfully held a cooperation signing ceremony with Professor Ma Cheng's

research team from the USTC and Guningjiyuan they founded. Zhang Jinjin Vice General Manager

of Minmetals New Energy and Professor Cheng Ma from the USTC signed a collaborative contract

titled Development of High-Nickel Cathode Materials for All-Solid-State Batteries agreeing to jointly

develop cathode materials compatible with all-solid-state batteries within two years. In addition the

parties also signed a strategic cooperation agreement to strengthen multi-faceted cooperation build an

industrial ecosystem and promote the commercial application of technology.Intellectual Property Protection

The Company places high importance on 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

rules such as the Detailed Rules for Intellectual Property Management the Detailed Rules for Scientific

and Technological Achievements Management and the Measures for the Administration of Science

and Technology to safeguard independent innovation achievements promote technology transfer

and commercialization thereby providing intellectual property support for the Company's sustainable

development. The Company has improved the quality of patent drafting and mining by collaborating with

Kickoff Meeting Successfully Held for Changsha Major Science & Technology outstanding patent law firms aiming to build a high-quality product patent portfolio. Additionally it has

Case Project Led by the Company introduced an industry-standard patent search system to strengthen in-house patent search and analysis

In May 6 the Launch Ceremony of the Changsha Municipal Major Science capabilities as well as enhance the construction of its patent database.and Technology Project — “Key Technologies for the Preparation of As of the end of 2024 the Company holds a total ofLithium Manganese Iron Phosphate Cathode Materials” — was successfully

held at the Central South University Science and Technology Park. The 162 valid patents 29 new domestic patent applications

project led by the Company in collaboration with the Hunan Zhengyuan 117 invention patents 26 invention patents

Institute for Energy Storage Materials and Devices aims to address critical 1 invention patent granted in Japan 3 utility model patents

44 utility model patents

industry-wide technical challenges such as low conductivity poor rate

performance and short high-temperature cycle life in lithium manganese 3 software copyrights 2 patent applications were filed under

iron phosphate (LMFP) cathode materials for lithium-ion batteries thereby the Patent Cooperation Treaty (PCT)

promoting the industrial application of next-generation LMFP technology. 18 domestic invention patents

21 new patents were granted

3 utility model patents

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Collaborative Value Chain Management The supplier admission process is conducted via the China Minmetals supply chain

platform involving the review of business licenses credit status qualification

Governance Admission certificates and system certifications. Indicators such as enterprise scale and financial

status are also considered. Only upon passing the admission process can suppliers

participate in bidding quotation and other business activities.The Company has optimized the structure of the Supplier Management Committee in accordance

with internal regulations such as the Measures for the Administration of Supplier Measures for the

Administration of Customer and Supplier Credit Risk and Procurement Management Regulations The Company enforces a stringent quality management process that covers all stages

to clearly define functions at all levels enable more efficient and specialized division of labor Management including product introduction random spot inspections and comprehensive control

and collaboration so as to guarantee meticulous "dedicated personnel for dedicated tasks" in all over suppliers’ products production and sourcing.management activities.Contract evaluations (including process and completion evaluations) and year-end

Strategy evaluations are conducted through the supply chain management platform. Annual

Evaluation

scores are consolidated to determine supplier grading and non-compliant or blacklisted

The supplier management adheres to the principles of "unified management dynamic evaluation and

suppliers are restricted or prohibited from further use.selective retention". By building a risk management system for the entire supply chain it achieves

full cycle control from supplier admission to exit ensuring supply chain stability and reducing

procurement risks. In supplier quality management the Company establishes a comprehensive Key raw material suppliers are subject to unscheduled spot checks and annual audits.evaluation system to dynamically assess suppliers and classify them into different grades while

Audit Unauthorized changes are strictly prohibited and the use of materials from high-risk

implementing a "blacklist" mechanism to control the quality of supplied materials at the source. regions is forbidden to help suppliers identify and mitigate supply chain risks.

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Risk Influence and Opportunity Management Emergency Response Digital and Intelligent Management

The Company has formulated the Special The Company has developed a digital dashboard

The Company has developed the Management Procedures of Responsible Minerals Supply Chain Due

Procurement Management Procedures for system on its supply chain platform enabling

Diligence to guide the identification prevention and mitigation of risks in the supply chain of mineral

Materials establishing an emergency review full-process traceability and recordkeeping

resources that may be used as raw materials.mechanism to address supply chain disruptions from procurement to sales. Real-time data

and enable short-term use or emergency visualization ensures compliance and standard

Integrity Management Responsible Procurement procurement of suppliers or products listed conformity across all stages.The Company has established a supplier The Company has formulated the Trade outside the qualified directory.admission and exit mechanism to implement Business Implementation Rules to innovate

full-process management from onboarding to trade channels and expand handling approaches

phase-out. By signing documents such as the in response to risks such as raw material Indicators and Targets

Integrity Commitment Letter and Intellectual overstock and price volatility. It has also

Property Registration Form the Company implemented the Management Procedures

Minmetals New Energy also ensures supply chain security through technological innovation

closely monitors risks related to supplier of Responsible Minerals Supply Chain Due

and industrial upgrading. As a "Three Products" benchmark enterprise in Hunan Province the

integrity unauthorized changes supply Diligence to carry out due diligence in line

Company leverages its subsidiary the "Hunan Provincial New Materials Pilot Platform" to enhance

chain mineral sourcing intellectual property with the Responsible Critical Mineral Initiative

technological conversion capabilities and continues to develop lithium iron phosphate products.protection and operational risks to ensure (RCI) requiring suppliers to sign compliance

At the same time the Company secured approval for two "unveiling and commanding" projects

suppliers operate in compliance. declarations to ensure that the sources of

targeting key products in Hunan Province's manufacturing sector. It also passed three scientific

minerals meet international standards.and technological achievements evaluations including "Development and Industrialization of Key

Technologies for High-Energy-Density Single-Crystal Ni-Rich Ternary Cathode Materials" and "Key

Green Supply Diversified Layout Technologies and Industrialization of High-Voltage High-Rate Polycrystalline Cathode Materials

The Company advocates the use of recycled For key products the Company has deployed and Their Precursors for Lithium-Ion Batteries". Additionally leveraging its provincial-level platform

raw materials and promotes the development of multiple alternative suppliers across regions qualifications and improved efficiency in achievement transformation the Company has established a

a green supply chain. Environmental and social to mitigate supply risks caused by seasonal safety system encompassing product performance technological reserves industrial capabilities and

responsibilities are integrated into management or policy-related force majeure events. A quality standards enhancing upstream-downstream collaboration and effectively addressing market

practices to reduce resource consumption and long-term procurement model is promoted to challenges.carbon emissions. enhance cooperation stability with long-term

suppliers being upgraded to strategic partners.

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Public Welfare Benefits Society The Company also provides employment assistance to supported regions by actively engaging with

seven designated counties. It has offered 14 job positions covering multiple fields such as production and

management enabling local residents to secure employment near their homes and enhance their self-

Welfare Activities development capabilities.Minmetals New Energy complies with the relevant provisions of the Measures for the Administration of

Donation of China Minmetals Corporation and has formulated its own Measures for the Administration of Minmetals New Energy Granted RMB 28000 Scholarships

Case

Donation. The Company actively carries out public welfare initiatives in areas such as poverty alleviation to Students from Impoverished Families

educational support and voluntary blood donation. In 2024 the Company organized a total of 22 volunteer

In November 2024 the research team from Minmetals New Energy visited households receiving

initiatives and donated RMB 28000 in financial aid to support 3 students from underprivileged families in

assistance in Lianghe Village and Mala Village Huayuan County to offer condolences and conduct

Huayuan County the designated assistance area.surveys. The Company donated RMB 28000 in financial aid to three underprivileged students aiming

Rural Revitalization to improve rural education quality break the cycle of intergenerational poverty and inject talent

vitality and sustainable momentum into rural revitalization.Minmetals New Energy responding to the national rural revitalization strategy contributes modestly to

advancing rural revitalization and accelerating agricultural and rural modernization. By combining "blood

transfusion" with "blood making" the Company focuses on education consumption and employment as key

drivers synergized with industrial technology empowerment to inject sustainable development momentum

into rural revitalization.In 2024 Party Committee members of the Company led teams to conduct on-site research in multiple

locations visiting and offering condolences to assisted families and provided targeted educational grants to

support financially disadvantaged students aiming to break the cycle of intergenerational poverty through

educational assistance.Additionally the Company focuses on consumption-based assistance to support the development of

specialty agricultural products in Huayuan County its designated regions. By opening new markets and

expanding sales channels the Company purchased specialty agricultural products from assistance regions

such as Shibadong Village through centralized trade union procurement cafeteria sourcing and other means

throughout the year. It also actively participated in initiatives such as the "Assistance Through Consumption

Campaign by Central SOEs" and encouraged its employees to voluntarily purchase goods to broaden sales

channels for agricultural products and boost farmers' incomes.

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03

Governance Section

Multi-stakeholder Co-governance

for Collaborative Development

Minmetals New Energ y has always stayed true to it s founding mission with Par t y building as

the guiding principle advancing governance modernization in compliance with regulations. The

Company continuously optimizes its organizational structure enhances the functions of the Board

of Directors and Board of Super visors and strengthens the capabilities of the management team

to fully empower the Board and standardize delegated authority management. In terms of lawful

and compliant operations the Company has established an integrated system for internal control

internal audit compliance and risk management to uphold legal integrit y and reinforce clean

governance. Meanwhile the Company places high importance on investor relations safeguards the

rights and interests of shareholders and creditors and ensures information disclosure in accordance

with regulations.

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Adhering to Party Building and Guide Political Development

The Company's Party Committee will firmly uphold the "Two Upholds" as the highest political principle and

The Company strictly adheres to relevant intra-Party regulations such as the Constitution of the Communist will firmly uphold the "two safeguards" as the fundamental political discipline conscientiously implement the

Party of China the Regulations on the Work of Branches of the Communist Party of China (For Trail decisions and arrangements of the CPC Central Committee and the work arrangements of the superior party

Implementation) and the Guiding Opinions on Strengthening the Party Leadership in Central SOEs' organizations formulate the "Measures for the Administration of the Company's Implementation of General

Corporate Governance Improvement and has established 23 internal management systems including the Secretary Xi Jinping's Important Instructions" and the "Implementation Measures for the "First Priority"

Work Rules of the Company's Party Committee and the Work Rules of the Company's Party Building System of the Company's Party Committee" and improve the "Log of Company's Implementation of General

Leading Group. In line with the Company's equity structure and mixed-ownership characteristics it firmly Secretary Xi Jinping's Important Instructions" to ensure that the work is always aligned with the spirit of the

upholds the fundamental principle of "maintaining the two consistencies" to establish a sound modern Party Central Committee and the requirements set by higher-level Party organizations. By strengthening the

corporate governance system featuring 'the Party organization steering direction the Board of Directors study of party discipline and political training the political judgment political understanding and political

making strategic decisions and the executive management overseeing operations". Specifically the Board of execution of primary-level party branch secretaries and party affairs staff have been effectively improved

Directors is responsible for "setting strategy making decisions and mitigating risks"; the Party Committee guiding party members and cadres to better perform their duties. In 2024 the Company has conducted study

ensures "providing direction managing the overall situation and ensuring implementation"; and the sessions on 28 policy directives and formulated 28 corresponding implementation measures.Executive Management Team focuses on "business planning execution and management enhancement".The Company will advance these efforts in an integrated manner and achieve five 100% targets under the Ideological Development

same standards:

Focus on achieving a deeper understanding by making solid efforts to study and comprehend thoroughly. The

Company has always regarded the study of Xi Jinping Thought on Socialism with Chinese Characteristics for

100% of subsidiaries will have Party building incorporated into their articles of association 100% a New Era as its primary political task strictly implemented the "First Priority" learning system and set the

of Party secretaries will concurrently serve as chairman (or executive director) 100% of Party study of the Party Committee's Theoretical Central Study Group as a "major course".organizations will establish rules for decision-making 100% of Party organizations will implement Focus on achieving thorough understanding by emphasizing internalization. The Company has fully

the pre-discussion procedure for major issues and 100% of Party organizations will have their implemented the spirit of the 20th National Congress of the Communist Party of China and the Third Plenary

operational funding fully secured so as to ensure the integration of Party leadership into every aspect Session of the 20th CPC Central Committee and focused on studying and discussing General Secretary

and throughout the entire process of corporate governance. Xi Jinping's new ideas new viewpoints and new conclusions on comprehensively deepening reform. The

primary-level Party organizations have effectively motivated Party members and cadres to devote themselves

to reform and development and strive for excellence by organizing activities such as the "Discussion on

The Company will further advance the reform of implementing fixed-term and contracted management Practicing in Posts and Developing New-Quality Productive Forces" through the "Three Meetings and One

for the managerial team. All members of the Executive Management Team will be subject to term-based Lecture" system alongside the study and implementation of the plenary session spirit along with educational

appointments with their positions and compensation strongly linked to business performance. campaigns like "Promoting the Plenary Session Spirit and Deepening Enterprise Reform" and the special

education initiative "60-Day Sprint for a Year-End Boom".

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Focus on achieving 'transformation' by emphasizing practical application of knowledge. The Company

adheres to integrating Party building with production and operations leveraging the "Five Reliefs" Case Conference on Disseminating the Spirit of the Plenary Session

mechanism to foster employee consensus namely an ideological and political work mechanism to address

In September 11 Liuquan Hu Party Secretary and Chairman of Minmetals New Energy delivered

employees' concerns in thought relieve mental burdens enrich cultural needs alleviate psychological

a speech on the theme of "Study and implement Xi Jinping Thought on Socialism with Chinese

pressure and resolve practical difficulties ultimately unify minds consolidate shared purpose and drive

Characteristics for a New Era and the spirit of the Third Plenary Session of the 20th CPC Central

collective efforts so as to provide strong ideological assurance for advancing the Company's high-quality

Committee and achieve annual goals and tasks with greater efforts and more practical measures" to

development.all party members and cadres of the Company. General Manager and Deputy Party Secretary Zhang

In 2024 the Company’s Party Committee's theoretical study group conducted 10 centralized study sessions Zhen and other members of the Party Committee attended the presentation session. Deputy Party

implemented 22 "First Priority" study sessions and ensured all Party member cadres completed an average Secretary Lu Yaohui presided over the session.of over 48 hours of political theory study. The senior managerial staff and Party organization secretaries

delivered 83 Party lectures with over 300 participations from Party members and cadres.The ninth Centralized Study Session of the Party Committee's theoretical study group in

2024

Organizational Development

The Company currently has more than 300 party members adhering to the working mechanism of "monthly

supervision quarterly inspection half-year evaluation and promotion and annual inspection" establishing

the orientation of "all work to the branch" and taking the responsibility of focusing on the grassroots and

the branch and promote construction of primary-level party organizations by taking "standardization and

normalization" as the criterion. The Company continues to optimize the party organization structure to ensure

that the principal person in charge of the department "shoulders both party and government administration".

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The Company regularly implements the reminder mechanism for party organization term changes and Optimizing Corporate Governance

adjustments urges all primary-level party organizations to complete the election and adjustment of members

in a timely and standardized manner select and strengthen branch secretaries and branch committee

members to ensure the continuity of grassroots organizational strength. Meanwhile the revised Party Organizational Structure

Membership Fee Collection Use and Administration Measures for Primary-level Party Organizations in the The Company strictly complies with relevant laws and regulations such as the Company Law Securities

Company was issued to standardize the scope of use and approval procedures for Party fees. In accordance Law Code of Corporate Governance for Listed Companies and Rules of the Shanghai Stock Exchange

with requirements the Party Committee's dedicated Party fee account has been transferred to the financial for Listing Stocks on the Sci-Tech Innovation Board and has established internal governance documents

department for management further strengthening the standardization of Party fee collection use and including the Articles of Association Rules of Procedure for the General Meeting of Shareholders Rules

administration within the Company. of Procedure for the Board of Directors Rules of Procedure for the Board of Supervisors and Measures for

the Administration of Independent Directors to establish a governance structure with the General Meeting

of Shareholders Board of Directors and Board of Supervisors serving as respective authorities for decision-

making execution and oversight. With clearly defined responsibilities and collaborative interaction among

all governance bodies effective operation of corporate governance mechanisms can be ensured. The General

Meeting of Shareholders is the highest authority of the Company responsible for deciding on the Company’s

business policies and investment plans. In 2024 five General Meetings of Shareholders were held.The Company is committed to achieving fairness and diversity in the composition of the Board of Directors

carefully balancing factors such as gender professional expertise and backgrounds to ensure scientific and

comprehensive decision-making thereby driving the Company's continuous progress. The Board of Directors

has established four specialized committees: The Audit Committee the Nomination Committee the

Strategy Committee and the Remuneration and Appraisal Committee with defined scope of responsibilities

and detailed implementation rules formulated for each committee. All committees give full play to their

professional expertise to ensure the legality scientificity and correctness of the collective decision-making

of the Board of Directors effectively enhance the transparency and efficiency of corporate governance and

further solidify the foundation for the Company's long-term and stable development.

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As of 2024 Compensation and Training for the Management

2 The Board Office organized and conducted a total of To ensure transparency and reasonableness in the management compensation

doctoral student Board of Directors meeting 11 decision-making process and pay structure the Remuneration and Appraisal In 2024 the 3

training coverage

5 Committee recommends compensation policies and their formulation procedures undergraduate Board of Supervisors rate for directors

students Board of to the Board of Directors. After thorough consideration of industry benchmarks supervisors and

Directors

graduate Special committees 9 senior management position responsibilities tenure length company performance and risk

students in office reached

Extraordinary general meetings and the 2024annual 5 exposure it reviews and determines the compensation and incentive packages 100%.3 general meeting of shareholders for senior executives.Reviewed Covering topics such as periodic reports fundraising and executive changes and Meanwhile the Company's Board of Directors places great emphasis on enhancing the professional

proposals ensured proper reception of the meeting as well as the archiving of relevant materials. competencies of directors supervisors and senior management. It regularly arranges for relevant personnel

53 Positive results have been yielded in strengthening board development and improving the governance system. to participate in specialized training programs ensuring they stay abreast of cutting-edge industry trends

and comprehensively improve their professional capabilities so as to provide solid support for the scientific

Audit Committee Nomination Committee Strategy Committee rigor of the Company's strategic decision-making and the efficiency of its operational management. The

Meeting Reviewed proposals Meeting Reviewed proposals Meeting Reviewed proposals training program includes specialized courses from the Shanghai Stock Exchange as well as diverse training

5 22 2 3 2 4 initiatives from other relevant institutions employing various training methods to enhance participants'

understanding and execution capabilities in corporate governance and ESG management.The Board of Supervisors as the Company's supervisory body is responsible for monitoring the financial Effectiveness Evaluation for Board of Directors

status business operations and the performance of directors and senior management. It has the authority

The Company has actively implemented the Board of Directors' authority. Since the establishment of its

to review financial materials rectify violations propose the convening of interim shareholder meetings

second-term Board of Directors of directors in 2022 a total of 30 board meetings have been held with

submit proposals and when necessary file lawsuits against directors and senior management all dedicated

to safeguarding the legitimate rights and interests of the Company and its shareholders. As of the end of 134 proposals reviewed and approved. The Implementation Plan for Exercising the Board of Directors'

the reporting period the Board of Supervisors consists of 3 members with two employee representative Authorities has been formulated and implemented and the List of Decision-Making Items and Processes at

the Headquarters has been revised.supervisors. Female representation on the Board reaches 66.6%. Strictly standardize the authorization of Board of Directors. The Measures for the Administration of Board

Authorization was formulated to clarify management requirements for authorization plan development

execution implementation oversight and adjustments based on the Company's operational decision-

making needs.Strengthen the internal governance of the Board of Directors. With the Board of Directors

as the responsible entity and the Chairman as the primary responsible person formulate and implement

the Measures for the Administration of Information Disclosure. In strict compliance with regulatory

requirements the Company ensures that major matters undergo rigorous procedures.

91 92Environmental Section: Community Section: Governance Section:

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Lawful and Compliant audit and study and implement relevant audit; Second the Company's Party Secretary and chairman

Management and Control Hu Liuquan has always insisted on high-level leadership attached great importance to audit

personally arranged and deployed personally followed up and supervised and actively promoted the

arrangements and deployments of the National Audit Office the SASAC and the Group on audit to

Internal Control be implemented in Minmetals New Energy.In line with regulations such as the Basic Standards for Enterprise Internal Control and Supporting

Guidelines the Company has established internal control supervision mechanisms including

the Internal Control Evaluation Measures Measures for the Administration of Internal Control Regulatory Compliance in Business Practices

Audit Internal Audit Management Regulations Internal Audit Project Management Measures The Company adheres to the philosophy of "respecting the law complying with regulations and

for Investigating Liability for Illegal Business Investment and Measures for the Administration creating value" strictly following group compliance guidelines such as the Economic Sanctions and

of Rectifying Audit Findings and carried out annual evaluations to correspond internal control Export Control Compliance Guidelines Corporate Governance Compliance Guidelines Business

standards with rules and regulations and completed inspections and assessments in all areas Partner Compliance Guidelines and Intellectual Property Compliance Guidelines. Internally it

including corporate governance listing compliance integrity safety and environmental protection has established a series of compliance regulations including the Measures for the Administration

production quality and contract texts. Through this series of measures the Company will continue to of Compliance Implementation Rules for Legal Compliance Management of Overseas Business

improve its internal control system enhance its core momentum improve its core competitiveness Guarantee Compliance Guidelines Contract Review Key Points Compliance Guidelines Overdue

and lay a solid foundation for high-quality development. Account Management Guidelines and International Arbitration Institution Selection Guidelines

to build an effective interconnected and multi-level compliance management system that covers

all areas integrating compliance into corporate strategy embedding compliance requirements

into business processes and fostering a culture of compliance within corporate values and remain

Internal Audit committed to preventing major compliance risks strengthening compliance competitiveness and

Under the leadership of the Company's Audit and Accountability Supervision Leading Group the laying a solid foundation to become a global leader in the new energy materials industry.internal audit department has consistently adhered to the working philosophy of "strengthening

oversight promoting management preventing risks and creating value" closely aligning with

The Party Committee the Board of Directors and the Executive Management Team perform their respective

the Company's key strategic priorities carried out all audit activities in strict accordance with the

duties.Company's strategic objectives and overall development goals fully leveraging audit professional

capabilities audit management expertise and audit service competencies. First the Company has

organized and held leading group meetings to thoroughly study and implement the spirit of the 20th The Party Committee strengthens top-level design and promotes the implementation of compliance

National Congress of the Communist Party of China the first meeting of the 20th Central Audit work plans.Committee and General Secretary Xi Jinping's important speeches and important instructions on

93 94Environmental Section: Community Section: Governance Section:

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The Board of Directors reviews and approves compliance policies programs and other documents

The Company has taken compliance review as a key initiative achieving a 100% legal review rate for

making decisions on major compliance matters.regulations economic contracts power of attorney and major decisions throughout the year and has

reviewed significant number of contracts authorizations policies and decisions and provided with a large

The Executive Management Team drafts compliance system construction plans and organizes portion of the suggestions being highly adopted. The Company embeds compliance review checkpoints into

responses to major compliance risk incidents.workflow processes with compliance officers deeply involved in all phases of major investment projects and

resolutely implements the "no decision without legal review no unlawful decisions" mechanism to build a

The compliance management system construction group researches and decides on key issues. comprehensive compliance risk prevention chain.The General Legal Counsel (Chief Compliance Officer) conducts compliance reviews of important "Three Lists and One Process"

contracts and major business decisions leads the handling of significant dispute cases and ensures

that relevant decisions comply with laws and regulations."Risk Identification List" "Compliance Duty "Process Control Checklist"

The Company organizes all Checklist for Positions" Based on the risk identification

Various functional departments and business departments/divisions bear primary responsibility for departments to systematically The Company has organized checklist and position-specific

compliance management. review external laws and total of 92 key personnel compliance responsibi l i ty

regulations national policies to establish 720 specific checklist al l departments

i n d u s t r y s t a n d a r d s a n d responsibilities based on analyze and evaluate business

in te rna l corpora te ru les their roles incorporating management sys tems and

consolidate liability clauses requ i rements f rom bo th processes to identify gaps

t h a t v i o l a t e c o m p l i a n c e business and supervisory and deficiencies in meeting

obligations identify 1900 departments and to reflect compliance requirements .compliance risk points across the responsibility compliance In accordance wi th these

13 domains and categorize r e v i e w s c o m p l i a n c e requi rements 90 process

them into high medium and management and compliance control measures have been

low impact levels to formulate a c t i o n s f o r m i n g a developed specifying their

a "Risk Identification List" "Compliance Duty Checklist control objectives responsible

for Positions" departments and personnel

control frequency and other

details so that the compliance

requirements are integrated

into business management

systems and processes to form

a "Process Control Checklist".

95 96Environmental Section: Community Section: Governance Section:

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The Company also places emphasis on fostering a culture of compliance. The Company has organized

learning of Xi Jinping Thought on the Rule of Law national security and confidentiality labor relations

Themed Legal Education Campaign

Bidding Law of the People's Republic of China data protection financial management contract management Case

intellectual property rights workplace safety and supply chain compliance training and actively carried out

In September In order to implement Xi Jinping Thought on the Rule of Law effectively strengthen

compliance publicity to strengthen employees' compliance awareness. the legal education of the Company's employees improve the legal awareness of all employees and

strengthen the prevention and control of legal risks such as "pornography gambling and drugs"

"drunk driving and drunk driving" and "online loans" on September 13 2024 Minmetals New

The First Interactive Exchange Event for 2024 of the Central SOE Legal Work Energy invited Wu Xianhua a senior professor of law and well-known lawyer at the Party School of

Case Collaboration Group (Group 8) the CPC Changsha Municipal Committee to carry out special legal education. The Legal Department

In April 12 2024 the first interactive exchange event for 2024 of the Central SOE Legal Work has compiled and interpreted the regulations on handling and punishing common illegal cases in the

Collaboration Group (Group 8) hosted by the Policy and Regulation Bureau of SASAC of the State Group and the Company’s systems.Council and organized by the Central SOE Legal Work Collaboration Group of China Minmetals

Corporation was successfully held at Minmetals New Energy.Various departments held discussions on topics such as improving corporate governance structures

in line with the new Company Law and the "reducing backlog controlling new cases" initiative. The

Legal Department of Minmetals New Energy shared specialized insights on intellectual property

management and expressed that it will effectively play the supporting and guaranteeing role of

the rule of law in enhancing the core competitiveness of enterprises and promoting high-quality

development and actively promote the rule of law in enterprises to prevent and resolve litigation

risks.In 2024 the Company clearly defined a checklist of 65

mandatory compliance review items and established a dual-

review mechanism involving both legal affairs and the general

counsel for major decisions. It strictly enforced a 100%

review rate for policies contracts authorizations and project

documents. Additionally the Company conducted a self-

assessment of its compliance system against 43 key indicators

and developed and rigorously implemented corrective action

plans to address any identified gaps.

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Risk Management Process Measures and results during the reporting period

In 2024 the Company continued to optimize its multi-tier risk management reporting

The Company strictly complies with the Comprehensive Risk Management Guidelines for Central

mechanism implemented emergency reporting procedures for major risk incidents

Enterprises and the Basic Norms for Internal Control of Enterprises. It has established the Company and maintained ongoing monitoring of occurred risk events. It routinely collected

Comprehensive Risk Management Regulations and the Measures for the Administration of Company Risk Risk both internal and external risk information issued risk alerts and facilitated proper

Tracking

Management Reporting continuously improving a well-defined and systematic risk management framework resolution of risk incidents. For risk events that have been disposed of it promptly

closed the closed loop to ensure the effective functioning of the risk prevention and

forming a strategic decision-making of the Board of Directors as the core an execution-oriented executive

control system for all personnel processes and systems.management team and a collaborative three-lines-of-defense model (business units risk control/functional

departments and audit department) as key safeguards and the coordinated control of the three lines of

Adhering to the principles of risk classification management hierarchical management

defense as the support promotes the construction of information systems such as treasury BI MES and

and centralized management the Company strengthens risk prevention and control

WMS and continues to promote the gradual transformation of the internal control system from "human in key areas and formulates risk control strategies based on classification to enhance

defense and control" to "technical defense and control". The Company has focused on key areas established the monitoring and early warning mechanism for major risks. Utilizing information

a mechanism for dynamic assessment and monitoring of major risks accelerated the construction of a digital technology the Company integrates the data flows of the six core systems of sales

procurement material control warehousing finance and risk control and vigorously

risk control platform promoted the upgrading of risk prevention and control capabilities and accelerated the

builds a full-chain visualization platform to accurately empower business operations

improvement of a comprehensive efficient and coordinated risk management system so as to provide solid timely warn of major risks quantitatively support risk decision-making to further

guarantees for sustainable development. improve the level of dynamic risk warning and build a resilient line of defense for the

Process Measures and results during the reporting period Company's sustainable development.The risk management department has organized an annual risk assessment at the The Company has strictly prevented HSE risks strengthened safety and environmental

company level closely integrated with the Company's business and management protection supervision promoted the rectification of hidden dangers and organized

objectives comprehensively evaluated important risks scientifically formulated various special emergency response drills and warning education. No serious injuries

response strategies for the top ten risks and focused on prevention and control. Risk

In 2024 the Risk Management Department employed a combination of methods such or above workplace safety accidents occurred throughout the year no general or above

Risk Control

as interviews and questionnaire surveys to conduct annual material risk assessments environmental pollution incidents occurred and no new cases of occupational diseases

Assessment

through a top-down and bottom-up approach. A total of 26 key risks were identified occurred.with 78 critical monitoring indicators and warning thresholds developed as part of

the initiative. A tiered management mechanism was established classifying risks into The Company has strictly prevented credit risks dynamically carried out "red yellow

red (strict control) yellow (warning) and green (normal operation) zones thereby and blue" risk ratings strengthened intelligent risk warnings and established an online

enhancing the precision and effectiveness of risk management. merchant credit rating model to improve efficiency by 66% and specially promoted key

The Company has established a major risk response checklist clarified the division overdue collection to prevent and resolve major overdue risks.of responsibilities between lead departments and implementation departments

strengthened accountability for risk management across all staff and maintained The Company has strictly prevented price risks strengthened budget management and

Risk quarterly tracking of major risks to enhance the application of risk monitoring results coordinated production sales and inventory balance to strictly control inventory.Monitoring provide timely warnings and oversee risk response measures.In 2024 focusing on the Company's top 10 key risks the Company established a risk The Company has strictly prevented the risks of industrial restructuring increased

response inventory and formulated 41 countermeasures and regularly collected both efforts in customer development and achieved results in the lithium iron phosphate

internal and external risk information. market.

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Process Measures and results during the reporting period Taxation Management

The Company has strictly prevented risks in the industrial chain steadily promoted

The Company complies with national tax laws and regulations as well as the unified tax management system

resource regeneration and recycling cooperation projects actively negotiated nickel

and phosphorus resource guarantees and moved towards the direction of industrial of Minmetals and has established tax management rules tailored to its business characteristics including the

chain integration. Measures for the Administration of Tax and Invoice Management System. The tax department collaborates

with finance legal and business operations departments to ensure that tax compliance is synchronized with

The Company has strictly prevented the risk of policy restrictions in Europe and the

United States paid close attention to changes in new energy tariff policies in Europe business development.and the United States and accelerated the international strategic layout to help

promote overseas markets and deliver products.Tax Compliance Management

The Company has strictly prevented the risk of insufficient human resources supply

Daily Tax Compliance: Strictly execute declaration and payment procedures for VAT corporate income tax environmental

continuously improved talent planning and strengthened echelon construction to

protection tax etc. ensuring data accuracy and timeliness.effectively guarantee talent demand.Tax Incentives: Proactively apply for new energy and high-tech enterprise tax incentives to reduce tax liabilities.Risk The Company has strictly prevented intellectual property risks improved the

Control intellectual property management system continuously enhanced patent reserves Cross-border Taxation: For import/export or international operations ensure compliance with customs duties VAT

strengthened the mining of high-value patents and conducted patent infringement refunds and transfer pricing regulations.warning retrieval and analysis to improve risk prevention and control capabilities.The Company has strictly prevented compliance management risks improved the Tax Risk Prevention and Control

hierarchical and classified compliance management system optimized and improved

the "three compliance checklists" of compliance management and drawn 90 new Internal Controls: Conduct internal audits and tax risk assessments (e.g. identifying risks through related-party transaction

pricing invoice management loopholes).compliance process diagrams covering 540 key nodes in the fields of finance security

operations etc. to form a practical compliance process list manual. Audit Preparedness: Establish tax inspection response protocols maintain complete business documentation and conduct

regular tax health checks.The Company has strictly prevented public opinion risks properly carried out

public opinion monitoring taken multiple measures to consolidate the ideological

foundation and strengthened confidentiality awareness to keep a tight control on

Tax Informatization Management

information disclosure.Utilize ERP systems such as SAP or UFIDA or specialized tax management systems to achieve automated tax data

processing declaration and monitoring thereby reducing human errors.Among the above 10 major risks 3 risks (price risk talent loss risk and policy risk)

showed a downward trend 1 risk (credit risk) increased due to market influence and the

remaining 6 risks remained stable and the same as the previous period.Invoice and Contract Management

Strictly implement the process of issuing receiving and storing VAT invoices and clearly define tax responsibilities in

contract terms.During the repor ting period the Company did not incur any signif icant losses nor was it involved in

external litigation or subject to penalties from regulatory authorities.

101 102Environmental Section: Community Section: Governance Section:

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Observing Business Ethics In 2024 the Company handled 7 problem clues initially closed 5 cases filed 2 cases punished 7 people and

issued 3 disciplinary inspection recommendations. In 2024 the Company has no incidents of commercial

Integrity Construction bribery corruption or related lawsuits and has demonstrated excellent business ethics effectively

maintaining a clean operating environment.The Company strictly complies with laws and regulations such as the Criminal Law Supervision Law

and Anti-Money Laundering Law and rigorously adheres to both Party discipline and national laws. It has 2024 Annual Conference on Party Conduct Integrity and Anti-

Corruption Work and Warning Education Session

established internal policies including: Measures for Handling Whistleblowing and Complaint Reports

Supervisory Inspection Measures for Three Majors and One Large Implementation Rules for Oversight

of the Central Eight-Point Directive on Conduct Procedures for Registration and Disposal of Gifts Cash

Gifts and Souvenirs Employee Disciplinary Action Guidelines (Trial) Work Guidelines for Primary-Level

Party Organizations Reporting Major Issues to Discipline Inspection Bodies Implementation Measures for

Conducting Integrity Talks with Key Position Personnel and Measures for Implementing the Accountability

System for Party Conduct and Integrity Building to create a compliant and integrity-driven operating

environment standardize employee conduct prevent corruption and safeguard stakeholder rights thereby

ensuring the Company's sustainable development.Standardize the honest professional behavior of all the Company's cadres and employees and carry out

various production and operation activities in an open and transparent manner. Firmly oppose "petty

corruption" among all production and operation management cadres and front-line employees maintain a

'zero-tolerance' stance toward corruption and strictly prohibit any form of commercial bribery.The Company has established and improved a clean reporting mechanism to protect the rights and interests

of confidential reports and whistleblowers in accordance with regulations. The channels for reporting are

disclosed and kept confidential through official addresses email addresses reporting phone numbers

WeChat and other channels. Relevant departments conduct irregular special oversight campaigns. Discipline

inspection and audit departments supervise key areas in accordance with the Bidding Law of the People's

Republic of China and other regulations advance the rectification of irregularities in engineering projects

hold responsible parties accountable and standardize approval procedures to oversee maintenance

simplification and technological upgrading projects to improve institutional frameworks. The Company has

identified integrity risks in operations standardized management procedures and developed a prevention and

control checklist and also conducted compliance training for employees at all levels to foster a culture of

integrity creating a fair just and trustworthy business ecosystem.

103 104Environmental Section: Community Section: Governance Section:

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Anti-Monopoly and Anti-Unfair Competition Working Hand in Hand for

The Company strictly complies with laws and regulations including the Anti-Monopoly Law of the People's Shared Success

Republic of China the Anti-Unfair Competition Law of the People's Republic of China the Provisions

of the State Council on the Standards for Merger Control Filing the Provisions on Prohibiting Monopoly Investor Relations Management

Agreements (Interim) and the Regulation on Prohibiting Abuse of Dominant Market Positions (Interim).In accordance with the Anti-Monopoly Compliance Guidelines of China Minmetals Corporation and the The Company places high importance on communication with investors and continuously enhances investor

Company's internal Measures for the Administration of Compliance on the basis of comprehensively relations management. To protect investors' rights and interests and enhance capital market recognition

promoting compliance management combined with compliance risk assessment it focuses on strengthening the Company has formulated Measures for the Administration of Investor Relations in accordance with

compliance management in the fields of anti-monopoly and anti-unfair competition and operates in regulatory documents such as the Working Guidelines for the Relationship Between Listed Companies and

compliance with all applicable anti-monopoly fair trade and anti-unfair competition laws and standards at Investors to increase communication frequency and adopt innovative approaches and actively engage with

home and abroad in the countries and regions where business is conducted to ensure healthy competition investors through multiple channels including the SSE E-Interaction platform roadshows reverse roadshows

with competitors and maintain normal business dealings with customers suppliers and sellers thereby investment conferences and online meetings.preventing monopolistic behavior.In 2024 the Company organized 4 performance briefing sessions 1 "Visit to Listed Companies"

In 2024 the Company organized compliance training covering key areas such as common legal risks

event and more than 30 on-site investor research activities receiving over 100 investors. Through

intellectual property safety and environmental protection quality control antitrust and anti-unfair

multi-level communication channels investors have a more comprehensive understanding of the

competition reaching approximately 4500 participants in total. Additionally the Company launched a

Company's core values and development strategies which is conducive to establishing long-term

"Compliance Promotion Month" campaign which included activities like signing compliance commitment

stable and trustworthy cooperative relationships between the Company and investors.pledges and hosting compliance knowledge competitions to enhance overall compliance awareness among

all employees. The Company has not been subject to litigation or major administrative penalties due to unfair

competition practices.Shareholders’ and Creditors’ Rights and Interests

The Company complying with relevant regulations such as the Company Law and the Securities Law

regards safeguarding the legitimate rights and interests of shareholders and creditors as important duties. By

regularly disclosing the Company's financial status operating results and major decisions to shareholders

and creditors information asymmetry can be avoided allowing shareholders and creditors to timely and

fully understand the Company's dynamics thereby providing strong support for making wise and rational

investment decisions.

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Information Disclosure

The Company strictly abides by various regulatory regulations adheres to fair just and open information

disclosure standards truthfully accurately completely and timely discloses financial operational and

governance information to stakeholders and fulfills the disclosure responsibilities of listed companies to

safeguard the right to know of all stakeholders.In 2024 the Company lawfully and compliantly disclosed more than 50 interim announcements and 4

periodic reports covering performance forecasts related-party transactions use and management of raised

funds and other types of disclosures thereby effectively fulfilling its information disclosure obligations

as a listed company. By combining various forms such as text charts and images investors can timely

understand the Company's operating situation and investment value. In terms of information disclosure full

attention is paid to the readability of investors reducing the difficulty of interpretation for investors. Annual

environmental social and governance (ESG) reports and periodic reports in English are also disclosed and

communication with overseas investors is continuously valued. The Company strictly abides by various

regulatory regulations of listed companies strengthens its main responsibilities continuously strengthens

information disclosure management achieves "zero errors" throughout the year and has won the highest

level of A-level information disclosure assessment by the Shanghai Stock Exchange for two consecutive

years.

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Outlook

Minmetals New Energy will adhere to the guidance of Xi Jinping Thought on Socialism with In the new year the Company will pursue steady progress with targeted breakthroughs to fully

Chinese Characteristics for a New Era fully implement the spirit of the 20th National Congress accomplish all annual business objectives; focus on core operations while driving growth at

of the Communist Party of China and the Second and Third Plenary Sessions of the 20th CPC both ends accelerating the formation of a complete industrial chain closed-loop ecosystem;

Central Committee conscientiously implement the decisions and arrangements of the CPC strengthen advantages and address weaknesses through enhanced incentives boosting

Central Committee and the State Council and the work requirements of the Group adhere to the supportive and leading role of technological innovation. scientifically benchmark and

the general working tone of seeking progress while maintaining stability fully accurately innovate mechanisms to comprehensively deepen reforms and promote quality and efficiency

and comprehensively implement the new development concept thoroughly implement the improvement; adhere to the bottom line ensure safety and continuously and effectively

requirements of the inspection and rectification of the central government and the party prevent and resolve risks in key areas; and practice the "20-Character" standard for leaders of

committee of the Group and the responsible audit and focus on stabilizing growth grasping state-owned enterprises and take responsibility in practical work.innovation strengthening industry promoting reform preventing risks ensuring safety and

The Company will steadfastly promote high-quality development to ensure the successful

strengthening party building.conclusion of the 14th Five-Year Plan and the smooth start of the 15th Five-Year Plan

contributing to social development and progress!

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Appendix 1: Key Performance Indicators

Environment Environment

Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022

Water Utilization Environmental Compliance Management

Total investment in environmental protection RMB 10000 5369.98 4139.78 /

Total water consumption 10000 metric tons 122.78 128.78 150.87

Proportion of total investment in environmental

%0.970.39/

protection to operating revenue

Fresh water consumption 10000 metric tons 82.46 94.49 101.99

Total recycled water Amount of significant administrative penalties

10000 metric tons 40.32 34.29 48.88

consumption imposed by environmental authorities due to RMB 10000 0.00 / /

Percentage of total recycled water environmental incidents during the reporting period

%32.8426.63/

consumption Pollutant Emission

Water consumption per million metric ton / million RMB

221.66120.03/

RMB 1000000 revenue revenue Discharge of wastewater 10000 metric tons 0.00 0.00 2.53

Energy Utilization Discharge of industrial wastewater 10000 metric tons 0.00 0.00 2.53

Pollutant equivalent / Total

Total energy consumption 10000 TCE 8.49 7.91 8.35 Ammonia nitrogen emissionsnitrogen 0.00 0.00 0.07

discharges (metric ton)

Direct energy consumption 10000 TCE 0.95 / / Pollutant equivalent / Total

COD 0.00 0.00 1.61

discharges (metric ton)

Proportion of direct energy

%11.19//

consumption Exhaust gas pollutant emissions (ammonia gas) metric ton 0.48 0.69 0.73

Fossil energy consumption 10000 TCE 0.95 / / Chemical oxygen demand (CODExhaust pollutant

metric ton 0.37 0.06 0.59

emissions (sulfuric acid mist)

Gasoline consumption Liter 1297.30 959.46 /

Exhaust gas pollutant emissions (PM) metric ton 2.08 1.54 1.42

Natural gas consumption 10000 TCE 0.95 0.39 0.10 Nitrogen oxide emissions metric ton 4.62 / /

Sulfur oxide (SOx) emissions metric ton 1.28 / /

Non-fossil energy consumption 10000 TCE 0.04 / /

Waste Disposal

Clean energy consumption 10000 TCE 0.95 / /

Total solid waste disposed metric ton 1970.94 / 275

Proportion of clean energy

% 11.19 / / General Volume of general industrial solid waste

consumption metric ton 1607.60 / /

generated

Indirect energy consumption 10000 TCE 7.55 / /

Hazardous waste metric ton 363.34 / /

Outsourced electric power 10000 TCE 6.72 6.74 7.16 Volume of hazardous waste disposal metric ton 363.34 / 400

Outsourced heating Total recycled and reused wastehazardous waste metric ton / RMB 1000000

10000 TCE 0.83 0.78 1.09 0.066 / /

powersteam generated per RMB 1000000 revenue revenue

Energy consumption per million Total non-hazardous waste generated per million metric ton / RMB 1000000

TCE /million RMB revenue 15.33 7.37 / 0.29 / /

RMB 1000000 revenue RMB 1000000 revenue revenue

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Environment Social

Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022

GHG Emissions Management Employee Recruitment and Employment

Total number of in-service employees person 2064 2330 2053

Total GHG emissions 10000 tCO2e 34.07 33.08 35.46

Ethnic minority employeesminorities person 111 148 /

Scope 1 greenhouse gas (GHG) emissions 10000 tCO2e 2.67 1.71 1.28 Proportion of ethnic minority employees % 5.38 6.35 /

Employees with disabilities person 5 / /

Natural gas 10000 tCO2e 1.54 0.64 0.14

Proportion of employees with disabilities % 0.24 / /

Carbonate 10000 tCO2e 1.13 1.07 1.13 Demobilized military personnel employed person 32 / /

Proportion of demobilized military personnel employed % 1.55 / /

Gasoline tCO2e 2.92 2.16 2.62

By type of employment

Scope 2 greenhouse gas (GHG) emissions 10000 tCO2e 31.40 31.36 34.19 Full-time employees person 2064 2330 2053

By gender

Outsourced electric power 100 MWh 5.46 5.49 5.83

Male person 1576 1810 /

Outsourced heating power (steam) 10000 GJ 24.22 22.92 32.25 Female person 488 520 /

Female % 23.64 22.32 23.14

Reduction of GHG emissions tCO2e 11648 / /

By age

Scope 1 emission reduction tCO2e 4359 / / 30 and below person 665 808 667

31-50 person 1251 1468 1241

Scope 2 emission reduction tCO2e 7289 / /

Over 50 person 148 124 145

Direct (Scope 1) GHG emissions per million RMB tCO2e / RMB

4.82 1.59 / By profession

1000000 revenue 1000000 revenue

Production personnel person 1280 1590 1454

Indirect (Scope 2) GHG emissions per million tCO2e / RMB

56.6929.23/

RMB 1000000 revenue 1000000 revenue Sales personnel person 19 20 18

GHG emission intensity per million RMB 1000000 tCO2e / RMB

61.51 30.83 / Procurement personnel person 18 / /

revenue 1000000 revenue

Technical personnel person 593 558 433

Financial personnel person 20 23 19

Administrative personnel person 134 139 129

113 114Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Social Social

Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022

By degree of education Total number of valid patents — 162 141 /

Ph.D. person 12 14 Number of valid patents per million RMB

—0.0290.023/

1000000 revenue

Master’s degree person 228 207 / Number of software copyrights

—33/

Bachelor’s degree or below person 1824 2109 / registered

Number of software copyrights

By geographical region — 0.00054 0.00028 /registered per RMB 1000000 revenue

China (the Chinese mainland) person 2064 2330 2053 Health and Safety

Employee Remuneration and Benefits Number of enterprises meeting certified

for workplace safety standardization — 1 / /

Social insurance coverage % 100 100 /

requirements

Average paid leave per employee day 5 5 / Workplace safety investment RMB 10000 732.7 533.4 /

Employee satisfaction rate % 98 97.29 / Proportion of workplace safety

%0.080.05/

investment to revenue

Average salary per employee RMB 10000 11.3 15.05 /

Average revenue generated per Length of workplace safety training hour 58000 53600 /

RMB 10000 252 460.47 /

employee Average safety training hours per

hour 28 23 /

Employee Development and Training employee

Total investment in employee training RMB 10000 46.84 38.4 60.28 Number of workplace safety training time 183 161 /

Number of training sessions held time 1068 1320 1254 Attendances for workplace safety attendance 16295 13930 /

training

Total length of training in the year hour 104351 58282 223874

Coverage of workplace safety training % 100 100 /

Average length of training hours per

hour 50.56 25.01 109.05 Investment in occupational injury

employee RMB 10000 81.47 / /

insurance for employees

Coverage of employee training % 100 100 100 Coverage of occupational injury

%100//

Employee Care and Assistance insurance for employees

Occupational illness incidence rate % 0 / /

investment in employee assistance RMB 10000 18000 / /

Number of employees in difficulty who Number of workplace safety incidents case 0 0 /

person 9 / /

received assistance

Social Welfare

Innovation and R&D

R&D investment RMB 100 million 2.32 3.77 / Community welfare investment RMB 10000 2.8 3.40 /

Community investment per million in

Proportion of R&D investment % 4.18 3.51 / RMB 10000 0.00051 0.00032 /revenue

Number of R&D personnel person 301 282 / Number of local employees hired person 1851 2330 /

Proportion of R&D personnel % 14.58 12.10 / Proportion of local employees hired % 89.6 100 /

115 116Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Governance Governance

Indicator Unit 2024 2023 2022 Indicator Unit 2024 2023 2022

Corporate Governance Regulatory Compliance in Business Practices

Number of Shareholders’ General Number of compliance training time 13 12 8

time 5 3 5

MeetingsMeetings of Shareholders

Length of compliance training hour 27.5 20 10

Number of meetings of the Board of Directors time 11 9 10

Number of Audit Committee meetings time 5 5 / Attendances for compliance training — 500 488 280

Number of Remuneration Nomination

time 2 / / Anti-corruption training time 48 45 42

Committee meetings

Number of Nomination Committee Length of anti-corruption trainingtraining hour 62 60 55

time 2 / /

meetingsmeetings of the Strategy Committee

Number of participants receiving anti-

Proportion of independent directors in the Audit — 2000 1593 1398

% 66.67 66.67 / corruption training

Committee

Proportion of independent directors in the

% 66.67 66.67 / Number of articles and cases related to

Remuneration Committee time 23 17 12anti-corruption themes pushed

Proportion of independent directors in the

%66.6766.67/

Nomination Committee Investor Relation and Management of Shareholders’ Rights

Number of meetings of the Board of Supervisors time 5 7 10

Performance presentation time 4 4 /

Attendance rate of BoD members % 100.00 100.00 /

Average tenure of board members year 3 3 /

Is the CEO also serving as Chairman of the Board / No / /

Proportion of independent directors % 37.5 33.33 /

Age standard deviation of directors supervisors

age 6.97 8.35 /

and senior management

Percentage of female directors % 12.50 0.00 /

Proportion of independent directors serving more

%00.00/

than 6 years

Percentage of independent directors holding

%00.00/

positions in over 3 listed firms

Whether the convener of the audit committee is

/ Yes / /

an accounting professional

117 118Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

Appendix II: Index List

Chapter Titles Central Enterprise ESG Index1 Stock Exchange Index2 Chapter Titles Central Enterprise ESG Index1 Stock Exchange Index2

Article 1 Article 2 Article 2

Building a Happy Workplace S1.1; S1.2; S1.3; S1.4 Article 49 Article 50

Article 4 Article 6 Article 7

About this Report G5.1; G5.2

Article 8 Article 10 Article Protection of Customers’ Article 44 Article 47

19 S2.1; S2.2Community Section: Rights and Interests Article 48

Message from Chairman / Article 2 Spreading Genuine Refining and Advancing Article 41 Article 42

Compassion S2.3

About Us / Article 12 R&D and Innovation Article 43Protecting Deeds of

Article 2 Article 2 Article 8 Kindness Collaborative Value Chain

S3.1; S3.2 Article 44 Article 45

Article 11 Article 13 Article Management

ESG Management G5.1; G5.2 14 Article 15 Article 16 Public Welfare Benefits Article 38 Article 39

S4.2; S4.3; S4.4

Article 17 Article 18 Article Society Article 40

19 Article 51 Article 52 Adhering to Party Building

G1.1 Article 51

and Guide

Communication with Stakeholders G3.1; G3.2; G3.3; G4.1;G4.2 Article 9 Article 53

Optimizing Corporate

Material Issues / Article 5 Article 7 Article 10 G1.1; G1.2; G1.3 Article 51

Governance Section: Governance

Multi-stakeholder

Optimizing Resource E.1.1; E.1.2; E.1.3; E.1.4; Article 34 Article 35 Article Lawful and Compliant

Co-governance S4.1; G2.1; G5.1; G5.2 Article 52

Management E.5.1; E.5.2; E.5.3; E.5.4 36 Article 37 Management and Controlfor Collaborative

Environmental Development Article 54 Article 55

Practicing the Thought Observing Business Ethics G2.2; G2.3

Section: Harmony Article 29 Article 30 Article Article 56

on Ecological E.2.1; E.2.2; E.2.3; E.4.1

with Nature 31 Article 32 Article 33

Civilization Working Hand in Hand for G3.1; G3.2; G3.3; G4.1; Article 9 Article 53

Empowerment Shared Success G4.2

Article 20 Article 21 Article

through Ecology

Combating Climate 22 Article 23 Article 24 1Note 1: The “Central Enterprise ESG Index” refers to the Reference Indicator System for ESG Reports of Listed Companies

E.3.1; E.3.2; E.3.4; E.5.6 Controlled by Central Enterprises.Change Article 25 Article 26 Article

2Note 2: The “Stock Exchange Index” refers to the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed

27 Article 28 Companies—Sustainability Report (Trial)

119 120Environmental Section: Community Section: Governance Section:

Empowerment through Ecology Protecting Deeds of Kindness Collaborative Development

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