Stock Abbreviation:Minmetals New Energy
Stock Code: 688779
Minmetals New Energy Materials (Hunan) Co., Ltd.
Website: http://www.cylico.com/
Environmental, Social, and
Governance (ESG) Report
Email: cylico@minmetals.com
Tel: +86 731-88998112
Address: No. 820, Guyuan Road, High-tech Development Zone, Changsha City, Hunan Province, China
Minmetals New Energy Materials (Hunan) Co., Ltd.
About This Report
Report Description Currency Unit
This report is the annual Environmental, Social and Governance (ESG) report issued by Minmetals New Energy Materials (Hunan) Co., Ltd. Unless otherwise stated, this report uses Renminbi (RMB) as the currency unit.
(hereinafter referred to as "Minmetals New Energy", the "Company" or "we"). In an objective, standardized, transparent and comprehensive
manner, this report fully presents the Company's specific actions, key practices, representative cases, and key performance indicators
regarding social responsibility performance, ESG risk management and opportunity capture in 2025. It actively responds to stakeholder
concerns, leading development through responsibility and demonstrating commitment through concrete actions, continuously deepening
the Company's corporate social responsibility practices. Report Access
You may access and download this report from the official website of Minmetals New Energy (http://www.cylico.com) and the Shanghai Stock
Exchange website (https://www.sse.com.cn).
Reporting Period
This is an annual report. Unless otherwise stated, the reporting period covers January 1, 2025 to December 31, 2025. To enhance the compa-
rability and completeness of this report, some content may trace back to previous years or include forward-looking descriptions. Feedback
Should you have any opinions or suggestions regarding the content of this report or the Company's environmental, social and governance
performance, please contact us through the following communication channels. Your feedback will help us further improve this report.
Tel: 0731-88998112
Reporting Scope
Email: cylico@minmetals.com
This report is based on Minmetals New Energy as the primary entity, including its subordinate branches and subsidiaries (excluding entrust-
ed subsidiary). Unless otherwise specified, the scope of this report is consistent with the consolidated financial statements in the Company's
annual financial report.
Explanation of Terms
Basis of Preparation
Abbreviation Full Name
This report is prepared primarily with reference to the Guiding Opinions on Better Fulfilling Social Responsibilities of State-owned Enterprises and
China Minmetals China Minmetals Corporation
the Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Central Enterprises issued by the State-owned Assets
Supervision and Administration Commission of the State Council (SASAC), the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation
Minmetals New Energy, the Company, we Minmetals New Energy Material(Hunan) Co.,Ltd.
of Listed Companies - Sustainability Report (Trial) and the Self-regulatory Guide for Listed Companies No. 13 - Preparation of Sustainability Reports
issued by the Shanghai Stock Exchange, the GRI Sustainability Reporting Standards (GRI Standards) issued by the Global Sustainability Former name: Changyuan Lico Former Name: Hunan Changyuan Lico Co., Ltd.
Standards Board (GSSB), as well as the United Nations Sustainable Development Goals (UN SDGs 2030).
Minmetals Capital Minmetals Capital Company Limited
Changsha Institute of Mining and Metallurgy Changsha Research Institute of Mining and Metallurgy Co., Ltd.
Taiwan LICO Taiwan LICO Technology Corp.
Data Sources and Reliability Assurance
Goldshine Energy Goldshine Energy Material Co.,Ltd.
All information and data cited in this report are derived primarily from internal documents of Minmetals New Energy or relevant public
materials. This report has been reviewed and approved by the Board of Directors. Minmetals New Energy assures that this report contains Changyuan New Energy Hunan Changyuan LICO New Energy Co.,Ltd.
no false records, misleading statements, or material omissions, and assumes individual and joint liability for the authenticity, accuracy and
MCC New Energy MCC Ramu New Energy Technology Co., Ltd.
completeness of its content in accordance with the law.
Contents
Message from the Chairman 01
Green Energy in Action,
Painting a Shared Future
with Green
About Us 03
Company Profile 03 Smart Resource Empowerment,
Breaking New Ground in Recycling
Corporate Culture 05
Fulfilling Ecological Responsibility -
Organizational Structure 06 Committed to Going Green
Pursuing "Dual Carbon" goals -
Business Overview 07 45
Empowering the Future
Honors for 2025 08
Milestones 09
Review of the "14th Five-Year Plan" 11 Upholding Integrity and
Pooling Efforts for Development, Forging Embracing Warmth to Build Driving Innovation, and
Ahead to Open a New Chapter 11 a Win-Win Ecosystem with Straightening the Founda-
Responsibility tion for Shared Prosperity
Through Governance
Empowering Careers and Uniting Party Building as the Guiding Force:
for Growth Uniting and Empowering
ESG Management 17
Sincerely Service Customers Value Strengthening Enterprises by
Co-Creation Excellence in Governance, Making 100
Governance 17 Steadfast and safe Progress
Advancing Innovation for Research 74
Strategy 17 for Long-Term Impact Compliance as the Shield and
Upholding Integrity Appendix 119
Impact, Risk and Opportunity Management 19 Intellectual Property Protection, 80
Building Momentum for Progress Upholding Integrity and Trustwor-
thiness Building Enterprises on 109 Key Performance Table 119
Indicators and Targets 22 Collaborative Synergy and Shared 81 Solid Foundations
Value Across the Chain Index Table 127
Stakeholder Engagement 23 Walking Together and Sharing
Public Welfare Warming Hearts, 113
Material Issues 25 Enriching Society
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Message from the Chairman
Message from the Chairman
This year, Minmetals New Energy fostered a people-oriented culture and conveyed warmth of responsibility.
We firmly believe that a company's value lies not only in business growth but also in giving back to society and warming people's hearts. We
adhere to a people-oriented approach, building diverse career development pathways, stimulating internal talent motivation, and organizing a
variety of cultural, sports, and care activities, enabling employees to achieve growth and happiness alongside the company's development. We
strictly implement workplace safety responsibilities, strengthen risk prevention and health management, and build a comprehensive safety shield
for all employees. We are deeply engaged in rural revitalization, using consumption support to broaden the market for agricultural products,
creating employment opportunities to help increase local incomes, and building bridges of support with genuine care. We actively participate in
public welfare initiatives and volunteer services, conveying the warmth of a central state-owned enterprise through small acts of kindness. In
supply chain development, we uphold compliance and green principles, building a stable, collaborative, clean, and efficient cooperation ecosys-
tem. For our products and services, we adhere to the spirit of craftsmanship, winning customer trust and market recognition through outstanding
quality.
This year, Minmetals New Energy strengthened governance effectiveness and consolidated its development foundation.
We have always remained true to our commitment to the rule of law, improving the modern corporate governance system, integrating Party
leadership into all aspects and processes of governance, ensuring that the strengths of Party building and governance effectiveness are aligned.
We have optimized the operation mechanism of the "Three Meetings", improved a decision-making and oversight system with clearly defined
powers and responsibilities as well as effective checks and balances, and ensured standardized and efficient corporate operations. We have built
a comprehensive compliance management and risk prevention and control system, strengthened the integrity defense line, and made compli-
ance operation a solid guarantee for development. Deepen ESG construction, refine the three-tier management system, integrate the concept of
sustainable development throughout, win multiple industry authoritative honors, gain high recognition from the capital market for many consec-
utive years, and demonstrate corporate strength and responsibility through excellent governance.
Minmetals New Energy Materials (Hunan) Co., Ltd.
Secretary of the Party Committee and Chairman of the Board
Hu Liuquan
This year, Minmetals New Energy focused on technological innovation and activated growth drivers.
We have always adhered to self-reliance in science and technology to empower high-quality development. Guided by a gradient development
strategy of "one generation in production, one generation in reserve, and one generation in pre-research", we actively promote research-driven
enterprise development, establishing research and technology development platforms, and incentivizing scientific and technological innovation.
We are making forward-looking arrangements in cutting-edge fields such as high-nickel, ultra-high-nickel, and solid-state battery cathode materi-
As time turns a new chapter, our original aspiration remains steadfast, guiding us forward with determination. The year 2025 marks
als, promoting the extension of the industrial chain toward higher value-added products and the transformation toward high-end, low-carbon
the successful conclusion of the "14th Five-Year Plan" and the opening of a new chapter in the "15th Five-Year Plan" blueprint. For our
products. As a core member of the SASAC "Central Enterprise Solid-State Battery Industry Innovation Consortium", we are leading the undertak-
corporate sustainability journey, this is a year of deep cultivation, continuous progress, and scaling new heights. Minmetals New Energy
ing of a solid-state battery-related project for the Ministry of Industry and Information Technology. Several key technological challenges have
has always taken its original mission as its guiding beacon, green development as its foundational principle, and innovation-driven
been successfully overcome and passed acceptance reviews, with notable achievements in innovation platforms and talent team development.
strategies as its engine. By deeply cultivating the new energy materials sector, the Company has forged ahead with determination and
We have deepened industry-academia-research collaboration with universities, promoting the efficient transformation of research outcomes,
achieved fruitful results in advancing the "dual carbon" goals and empowering high-quality development.
and providing solid support for the company's safe, stable production and the industry's high-quality development through our technological
strength.
This year, Minmetals New Energy upheld green development and strengthened its low-carbon foundation. The journey is long, yet the wind is strong; we raise our oars and set sail once more. Standing at the new starting point of the "15th Five-Year Plan",
facing the profound transformation of the new energy materials industry and the strategic opportunities of global green transition, we are deeply
We have always regarded environmental protection as the lifeline of our corporate survival and growth, continuously improving a clearly tiered aware of our heavy mission and responsibility. Going forward, we will continue to make green development our defining characteristic, commit-
and well-defined ecological governance system, and deeply integrating green development concepts into all aspects of production and ting to ecological protection and low-carbon transition, ensuring that corporate growth coexists harmoniously with nature. With responsibility as
operations. With a firm long-term emission reduction target, we are steadily advancing the realization of the "dual carbon" goals, vigorously our unwavering commitment, we will deepen employee care and social contributions, allowing the warmth of our company to reach more people.
developing clean energy, continuously optimizing our energy mix, and making green electricity a key pillar of our production energy. We are With sound governance as our solid foundation, we will continuously improve the modern corporate system, ensuring steady development
deeply engaged in resource recycling, perfecting the recycling industry chain to maximize the value of every resource. Through targeted pollution through excellent governance. With innovation-driven growth as our core engine, we will dedicate efforts to core technology breakthroughs,
prevention and control measures, we strictly control wastewater, exhaust gas, and noise emissions, safeguarding our natural environment with leading industry upgrades through technological strength. We firmly believe that with the unity, dedication, and collective efforts of all our
tangible actions. From continuously improving water resource recycling efficiency to presenting our power battery resource utilization practices colleagues, and with the trust, support, and partnership from all sectors of society, Minmetals New Energy will continue to write new chapters in
at international summits, we are fulfilling our ecological responsibilities with concrete actions, making green our most distinctive developmental the vast landscape of the new energy materials industry. We will contribute even greater momentum to promoting high-quality industry develop-
backdrop. ment and supporting the implementation of national strategies!
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report About Us
About Us
Company Profile
Minmetals New Energy Materials (Hunan) Co., Ltd. (abbreviated as "Minmetals New Energy", stock code:
Global 500 company. It is also a member enterprise of the Corporate Electric Vehicle Alliance, the chairman
unit of the Hunan Battery Industry Association, and the chairman unit of the Chang-Zhu-Tan Advanced
Energy Storage Materials Industry Alliance. It was listed on the Science and Technology Innovation Board of
the Shanghai Stock Exchange in August 2021.
As a core pillar of China Minmetals' innovation-driven development strategy and its effort to build "Future
New Power", Minmetals New Energy adheres to the action guidelines, value orientation, and corporate
spirit of "world-class mission and responsibility, leading role in independent innovation, problem-oriented
work thinking, quality excellence, and the fighting spirit to dare to succeed". With the strategic positioning
of becoming a "domestic first-class and internationally renowned supplier of new energy materials", the
Company focuses on its core business, upholds integrity and innovation, dares to take responsibility,
strives for world-class excellence, and is committed to strengthening, expanding, and growing the
enterprise, sharing development outcomes with a broader range of stakeholders.
In the future, the Company will actively practice the new development philosophy of innovation, coordina-
tion, green, openness, and sharing, strengthen its foundation, enhance its advantages, and join hands with
its many partners to forge ahead toward becoming a "global leader in the new energy materials industry."
It will continuously contribute to meeting the people's growing needs for a better life, strive to support the
implementation of the national new energy vehicle strategy, take responsibility for promoting high-quality
economic and social development, and make new and greater contributions to achieving the Second
Centenary Goal!
innovation green sharing
coordination openness
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report About Us
Corporate Culture Organizational Structure
Shareholders' Meeting
Core Cultural Concepts
Strategy Committee
Nomination Committee
world-class mission and responsibility and the fighting spirit to dare to succeed
Board of Directors
Action Guidelines,
Remuneration and
Value Orientation,
Appraisal Committee
Corporate Spirit
Audit Committee
leading role in independent innovation quality excellence
Management Level
problem-oriented work thinking Strategic
General
Planning
Management
Department
Department
(Board Office,
(Party CPC
Enterprise
Committee Organization Safety and
Management
Office, Department Discipline Environ-
Department, Finance
Strive to be first-class employees, Party-Mass Inspection mental
To become a global leader in the new (Human Securities Department
create first-class products, and build a Work Department Protection
energy materials industry Resources Affairs
Corporate Applied Cultural first-class enterprise together Department, Department
Department) Department,
Vision Concepts Party
Compliance
Committee
and Risk
Propaganda
Control
Department)
Department)
Sub-concepts of Corporate Culture
Party Building Concept Quality Concept Integrity Concept Talent Concept
Political guidance, integrated Survival through quality, market Virtue, integrity, and truthful- Provide opportunities for those
development, people-oriented, access through certification, ness; dedication, responsibility, willing to work, platforms for
joint construction and sharing success in details, future in and effort those capable, and incentives Quality Engineering Information Logistics MCC Changyu
Research Business Golshine
quality for those who achieve results Assurance Technology Technology Affairs New an New
Institute Center Energy
Department Department Center Department Energy Energy
Audit Center
Safety Concept Customer Concept Compliance Concept Innovation Concept
(Party
Committee
Safety is the greatest saving, Observe the market attentively, Compliance creates value, Technological innovation drives
Inspection
and accidents are the greatest treat customers sincerely compliance is everyone's high-quality corporate develop-
Office)
waste responsibility ment
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report About Us
Business Overview Honors for 2025
Minmetals New Energy specializes in the research, production, and sales of high-efficiency battery materials. Its main products include multi-ele-
ment precursors, multi-element cathode materials, lithium iron phosphate, lithium cobalt oxide, and other lithium battery cathode materials, as
well as nickel-metal hydride battery cathode materials. The Company possesses a complete product system for lithium battery multi-element
precursors, lithium battery multi-element cathode materials, and lithium iron phosphate cathode materials, maintaining a leading market share
in the power ternary materials sector. The Company is headquartered in Changsha, Hunan Province, with three production bases: Gaoxin, Lugu,
and Tongguan. In April 2025, following a decision by China Minmetals, the management relationship of MCC Ramu New Energy Technology Co.,
Ltd. was transferred as a complete entity to the Company. Currently, the Company has an annual production capacity of 120,000 tons of ternary
cathode materials, 60,000 tons of lithium iron phosphate materials, 30,000 tons of precursors, and 5,000 tons of spent battery recycling and
utilization.
with three production bases: Gaoxin, Lugu, and Tongguan
Excellence Award
Be Committed to Quality EVE Energy 2026 Supply Chain Partners China Minmetals Central China Region First Staff
Leveraging China Minmetals' long-term resource security advantages and full Conference Outstanding Quality Award Sports Games Outstanding Organization Award
industry chain advantages in nickel, cobalt, manganese, lithium, and other
resources, the Company adheres to quality, gathers talent, and focuses on R&D. It
has developed strong research capabilities and mastered advanced technologies
in precursor synthesis, cathode material preparation, and spent battery recycling.
The Company has been recognized as a National Intellectual Property Advantage
Enterprise, a National High-Tech Enterprise, a National-level Specialized, Sophisti-
cated, Distinctive, and Innovative "Little Giant" Enterprise, and a National "Green
Factory." It holds 202 valid patents and has a National Enterprise Technology
Center and a Postdoctoral Research Workstation. The Company's products
represent the development direction of high-performance lithium-ion battery
cathode materials. Its single-crystal ternary and high-nickel materials are
renowned in the industry, with product technology reaching internationally
advanced levels. The Company has obtained ISO 9001 Quality Management Focus on R&D Attract Talents
System certification, ISO 14001 Environmental Management System certification,
ISO 45001 Occupational Health and Safety Management System certification, ISO
Management System certification, IATF 16949 Automotive Quality Management
System certification, and Intellectual Property Management System certification. 202 valid patents
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report About Us
Milestones
Renamed to Minmetals New Energy Materials
Changyuan Lico, Goldshine Energy, and Changsha
project assets were restructured to form the new
Changyuan Lico.
Completed shareholding reform and renamed
Changsha Institute of Mining
Metallurgy and Taiwan LICO established
a joint venture company, primarily
and
Implemented key employee shareholding, with
producing lithium cobalt oxide.
to hold 1.07% of the Company's shares
Became a wholly-owned subsidiary
(formerly Kingray Technology)
Became a directly-affiliated enterprise of Successfully listed on the SSE STAR Market
Successfully introduced RMB 1.7 billion in
equity capital from 11 strategic investors
including China Reform Holdings, SAIC, and
BAIC
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Review of the "14th Five-Year Plan"
Pooling Efforts for
Review of the
During the start of the "14th Five-Year Plan" period, the country has adopted a forward-looking vision with the release of the New Energy Vehicle
Development, Forg- Industry Development Plan (2021-2035), which sounded the clarion call for the large-scale development of the new energy vehicle industry. Seizing
this historic opportunity, Minmetals New Energy embarked on a five-year campaign of high-quality development. Over the past five years, guided
"14th Five-Year Plan" ing Ahead to Open a
New Chapter
by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Company has earnestly implemented the work arrangements
of the Party Leadership Group of China Minmetals. It has unleashed vigorous vitality through deepening reform, broken through technical
barriers via scientific and technological innovation, and demonstrated the responsibility of a state-owned enterprise in strategic planning.
Party Building Leads, Forging the Soul and Gathering Strength to Solidify the Foundation
The Company adheres to political construction as the guiding
principle, deeply cultivating the fertile ground of theoretical
education. It organizes party members and cadres to thoroughly
study and deeply understand the core essence and practical require-
ments of Xi Jinping Thought on Socialism with Chinese Characteristics
Looking back at the "14th Five-Year Plan" period, the Company has advanced steadily amid market changes and development. In for a New Era and the spirit of the 20th National Congress of the
August 2021, it successfully went public on the Shanghai Stock Exchange's STAR Market, raising RMB 2.725 billion through a public Communist Party of China, transforming learning outcomes into a
offering. The following year, it issued convertible corporate bonds, raising RMB 3.25 billion, injecting new momentum for its powerful driving force for promoting high-quality development. The
sustained development after listing. These two critical rounds of financing effectively guaranteed the construction funding for Phase Company earnestly carries out education on Party history, thematic
education on studying and implementing Xi Jinping Thought on
I and Phase II of the High-Tech Base and the lithium iron phosphate project. The Company's production capacity expanded rapidly,
Socialism with Chinese Characteristics for a New Era, education on
with the 80,000-ton cathode material expansion project and the 60,000-ton lithium iron phosphate project completed and put
Party discipline, and in-depth studies to implement the spirit of the
into operation smoothly. The Company attaches great importance to scientific and technological R&D, yielding fruitful innovation
Party's eight-point frugality code. These efforts guide party members
achievements. It has been recognized as a National Enterprise Technology Center. The research institute's hardware equipment
and cadres to profoundly grasp the decisive significance of the "Two
boasts a full-process battery material characterization capability covering material microstructure characterization - physical and Establishments", continuously enhancing the "Four Consciousness-
chemical performance testing - actual electrical performance testing, reaching the industry's first-class level. Key operating indicators es", strengthening the "Four-sphere Confidence" and achieving the
Party Committee Election of Minmetals New Energy
have repeatedly set records, with a significant leap in operational quality and efficiency:By the end of Q3 2025, the Company achieved "Two Upholds", consciously aligning their thoughts and actions with
a cumulative operating income of RMB 46.138 billion and generated profits of RMB 1.831 billion, representing increases of the decisions and deployments of the Party Central Committee.
Rooted in the "Three Fundamentals" (fundamental organizations, fundamental teams, and fundamental systems), the Company strengthens the
an increase of 202.31% from the end of 2020. The company's development has achieved quality improvement and accelerated
political and organizational functions of grassroots Party organizations. Following the trajectory of the "Year of Consolidation and Deepening",
growth.
"Year of Innovation and Expansion", "Year of Comprehensive Standardization", and "Year of Refinement and Expansion" for Party building, it
continuously solidifies the foundation of grassroots work. Guided by the "Party Flag Flying, Party Badge Shining" initiative, the Company extensive-
ly carries out activities such as the "Four Batches", "Model Party Branches", and "Party Building +" project initiatives, guiding all Party members to
fully play their vanguard and exemplary roles in key areas such as technological innovation, cost reduction and efficiency enhancement, market
development, and risk prevention and control, ensuring that Party members and employees take on primary responsibilities, focus on core tasks,
and play leading roles on the main front of production and operations. The Company deepens the "two-way cultivation" mechanism of cultivating
Party members into business leaders and cultivating leaders into Party members, forming a virtuous cycle of "Party building promoting business,
business strengthening Party building". The number of Party members in the Company has grown from 137 at the end of 2020 to 305
injecting a steady stream of vitality into the Company's high-quality development.������
The Company unswervingly promotes comprehensive and strict governance of the Party to deeper levels, fostering a clean political ecosystem
through strict standards, strict measures, and a strict atmosphere. The Party Committee of the Company has thoroughly implemented General
Secretary Xi Jinping's important thoughts on Party building and the Party's self-reform, advancing the integrated fight against corruption by
ensuring officials do not have the desire, opportunity, or audacity to engage in corruption. It has consistently strengthened the ideological
defense of Party members and officials against corruption through integrity education and warning education. Focusing on key areas and critical
links such as major engineering projects and bidding, the committee has carried out special campaigns to address prominent issues, rigorously
investigated and dealt with violations of laws and discipline to create a strong deterrent effect, and effectively implemented the "second half of
Minmetals New Energy's STAR Market Listing Ceremony the article" (i.e., follow-up rectification and governance work) by using cases to promote governance and reform. This approach promoted the
integration of punishment, rectification and governance, and the coordination of supervision, case handling and warning.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Review of the "14th Five-Year Plan"
Breakthrough through Reform, Restructuring Systems to Unleash Efficiency Empowering through Innovation, Driving with Technology as the Core Engine
The Company adheres to the fundamental principle of the "Two Adherences" (upholding the Party's leadership over state-owned enterprises and Rooted in the national development strategy, the Company has built a strong research capability with quality as its foundation, talent as its key,
establishing a modern enterprise system), advancing high-quality mixed-ownership reform. It has successively implemented the three-year and R&D as its core. During the "14th Five-Year Plan" period, the Company was recognized as a National Enterprise Technology Center, a National
action plan for SOE reform and the deepening and upgrading action, steadily moving toward the modernization of its governance system and High-Tech Enterprise, and a National-level Specialized, Sophisticated, Distinctive, and Innovative "Little Giant" Enterprise. It is also a National
governance capability. The Company systematically reviewed and improved the "Three Lists and One Process" (list of powers, list of responsibili- Intellectual Property Advantage Enterprise and a Whitelist Battery Recycling Enterprises. The Company holds provincial and municipal innovation
ties, list of prohibited items, and flow chart), refined the leadership mechanism of "two-way entry, cross-appointment", and achieved the "one platform qualifications, including the Hunan Provincial Engineering Research Center, the Provincial New Materials Pilot Base, the Changsha
person holding both positions" of Chairman and Party Secretary. It standardized the construction of the Board of Directors, issuing policies such Municipal Technological Innovation Center, the Municipal New Type R&D Institution for Enterprises, and the Municipal Capacity Expansion and
as the Implementation Plan for Implementing the Board's Authority and the Measures for Authorizing the Board of Directors to ensure scientific and Upgrading R&D Center.
efficient decision-making. The Company promoted the incorporation of Party building into the articles of association across the entire system,
strengthened the Party committee's pre-study review and gatekeeping role, and deeply embedded Party organizations into the corporate
governance structure. It also deeply implemented the reform of tenure system and contractual management for the management team, closely
linking appointments and compensation with business performance, resulting in a significant improvement in governance effectiveness.
Closely following the Party's organizational line in the new era, the Company
focuses on building a high-caliber cadre force and establishing a well-connect-
ed, highly effective organizational system. In response to industry development
and high-quality demands, the Company has implemented a talent-strengthen-
ing strategy and a talent chain completion strategy, deepened the reform of
the three systems (employment, labor, and distribution), and improved the
full-chain mechanism of "recruiting, utilizing, developing, and retaining" talent,
expanding the talent "pool". Over the past five years, the total number of
employees has nearly doubled from approximately 1,100 to over 2,300.
The talent structure has been continuously optimized, with the number of
employees holding bachelor's, master's, and doctoral degrees increasing by
Five-Year Plan" period. The Company dynamically adjusts its reserve cadre pool
and intensifies development efforts, with cadres under the age of 45 managed
by the Party committee accounting for 75%. Firmly committed to "building a Minmetals New Energy "Lico New Star" Training Camp
nest to attract phoenixes", the Company has strengthened the recruitment and
development of research personnel, forming a high-quality, professional, and
tiered research talent team composed of individuals recognized under Hunan Minmetals New Energy Research Institute
Province's Furong Scholar Program Leading Talents, Provincial Outstanding
Engineers, Provincial "Xiaohe" Talent, Changsha Tier C and D Talents, and The Company persists in deep cultivation of traditional advantageous fields, tackling mainstream market segments, and exploring future trends,
Municipal Outstanding Young Scientific and Technological Talents. continuously enhancing its technology reserve for enterprise development. It has refined its precursor product structure and achieved mass
production of several new products, including ultra-high nickel, high-voltage, and high-power variants. Targeting applications such as high voltage
The Company further optimizes its operational efficiency and effectiveness, and high power, several medium-nickel single-crystal cathode materials have become "bestsellers" in the market due to their high energy density,
enhancing its internal vitality, market competitiveness, and development low watt-hour cost, and wide applicability. The newly developed gradient doping modification technology and advanced sintering process
leadership. It has strengthened the positioning of functional departments and technology have reached internationally leading levels. Several products in the 8-series high-nickel and 9-series ultra-high-nickel categories have
business centers, striving to build a management and control mechanism been mass-produced and shipped, laying the foundation for expansion into higher-end market applications. Focusing on an integrated layout
characterized by a "small headquarters, large platforms, and large industries". spanning resources, precursors, cathode materials, and recycling, in 2023, the Company achieved the first-ever breakthroughs in both production
The Company has increased the integration of internal business resources to line commissioning and mass production of its first high-compaction second-generation semi-product, making it the first ternary material
improve operational efficiency. It has accelerated the pace of digital transforma- enterprise in the industry to independently achieve mass production of lithium iron phosphate. A product series layout has been established,
tion, launching a "digital enterprise brain" to significantly improve the integration including precursors, power second-generation, third-generation, and fourth-generation tiered products, high-compaction energy storage
rate of business and finance. The Company introduced ESG management products, high-rate products, and high-voltage lithium manganese iron phosphate products, creating a diverse product matrix for dynamic and
concepts and developed a unique "sustainability-driven dual-driven quality storage scenarios. Cobalt lithium high-rate and high-voltage products have achieved phased breakthroughs, with second-generation products
management model", jumping to an AA rating in the Wind ESG rating system. It being introduced to high-end customers, third-generation wide-temperature-range products completing design finalization, and 4.53-4.55V
has obtained eight major management system certifications, including ISO 9001, high-end product technology reaching the forefront of the industry. In battery recycling, a key full-component resource utilization technology
IATF 16949 (automotive industry), ISO 14001, and ISO 45001, building a manage- system has been established, featuring "automated disassembly of power battery packs + live cell crushing + prioritized lithium extraction from
ment and control system covering all business processes. The Company was also Minmetals New Energy wins the "Third Changsha black powder + deep purification of nickel, cobalt, and manganese + anode material resource utilization," addressing core industry challenges
honored with the "Third Changsha Mayor's Quality Award". Mayor's Quality Award" such as safety, economic viability, and environmental protection.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Review of the "14th Five-Year Plan"
The Company holds 179 valid patents, including 105 new invention patents granted in the past five years. It has newly filed 5 PCT patents and
received the "Hunan Provincial Patent Award Second Prize". The Company actively participates in the development of national and industry
standards, leveraging standards to drive the development of the battery materials industry. During the "14th Five-Year Plan" period, it led or
participated in the development of 81 technical standards and received 12 "Excellent Technical Standard Award" from the National Non-ferrous
Metals Standardization Technical Committee. The Company has led or participated in 11 projects, including the national key R&D program of
China, major special projects of the Ministry of Industry and Information Technology, key R&D projects of Hunan Province, and science and
technology innovation leading projects of Hunan Province. The Company was successfully selected as a member of the SASAC "Central Enterprise
Solid-State Battery Industry Innovation Consortium". Its groundbreaking work on "high-throughput solid-state battery cathodes" was selected as
one of the "Top 10 Scientific Issues" by SASAC.
Minmetals New Energy's Three Industrial Bases
The Company adheres to the philosophy of "customer first, business oriented", deeply cultivating the domestic market while expanding its
Minmetals New Energy Ternary Cathode Material Production Workshop
international footprint. Its domestic market share in ternary materials continues to lead. Core customers include leading power battery enterpris-
es such as CATL, Sunwoda, and EVE Energy. The Company's production and sales scale remain in the first tier of the industry, with continuously
growing brand influence and reputation. Among its products, the 6-series medium-nickel high-voltage products are supplied to top domestic
battery manufacturers and used in mainstream vehicle models, with shipments ranking among the top three in the industry. In the international
Strategic Layout: Complementing and Strengthening the Industrial Chain to Expand New Frontiers market, the Company has long supplied renowned companies such as Panasonic Energy, Murata (Japan), and SAFT (France), and has successfully
become part of the supply chain of global automotive giants like BMW and Toyota. Several of its products have become core or sole suppliers to
these customers.
The Company has reinforced its foundational capabilities, driving the aggregation and synergistic development of resource elements. It has Looking to long-term development, the Company has increased strategic investments in resource development and overseas projects. It has
established three major industrial bases - Lugu, Tongguan, and Gaoxin - and built a new 80,000-ton cathode material project, providing a participated in Jinchuan Nickel & Cobalt's capital increase and strategic investor introduction project, and established a joint venture with Toyota,
solid foundation for scaling its ternary business. This has enabled a diverse product portfolio covering ternary cathode materials, lithium Meiwa, and Changsha Institute of Mining and Metallurgy to engage in spent battery recycling, building a diversified cooperation ecosystem. The
cobalt oxide, and others, allowing the Company to promptly respond to customer needs across different application scenarios. Keeping pace Company is also advancing the Axens project in France, leading feasibility studies for overseas capacity construction, and steadily exploring new
with market developments, the Company completed a 60,000-ton lithium iron phosphate (LFP) project, formally entering the LFP track and pathways for capacity expansion abroad.
further expanding its cathode material business scope. With the entrusted management of MCC New Energy, the Company has also positioned
Through trials and hardships, we have forged brilliance, and with determined efforts, we embark on a new journey. As the "14th Five-Year Plan"
itself in the spent battery recycling capacity, making its industrial chain more complete. As the "chain leader" of China Minmetals' new energy
concludes with splendid achievements and the "15th Five-Year Plan" embarks on a new journey, Minmetals New Energy will, with even firmer
materials industrial chain, the Company leverages the strategy of "strengthening the leading role, complementing the chain, and gathering
conviction and higher morale, stand at the forefront of the industry, pursue its dreams on the global stage, and accelerate its transformation into
clusters" to advance strategic frontier projects such as "development of high-energy-density lithium-rich manganese-based materials" and
a global leader in the new energy materials industry, contributing significantly to China's path to modernization.
"development of key materials for solid-state batteries", while planning integrated lithium iron phosphate projects, continuously strengthen-
ing the industrial chain's capabilities.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report ESG Management
ESG Management
Minmetals New Energy anchors its development direction towards high-quality growth, adheres to its original development aspirations, clarifies
its strategic positioning, refines its business layout, deepens market expansion, strengthens risk prevention and control, and fosters innova-
Deepen technology R&D and take a Strengthen, extend, and complement the industrial
tion-driven development. By implementing standardized management practices, it actively embodies the concept of sustainable development,
leading position in key areas. chain to achieve integrated industrial development.
has garnered multiple honors in the ESG field, and demonstrates the Company's sense of responsibility and commitment to high-quality develop-
ment.
Solidify current product R&D, continuously strengthen Actively fulfill the role of "chain leader" by strengthening,
basic research, and deeply expand cutting-edge R&D, extending, and complementing the industrial chain to
particularly focusing on key areas such as solid-state promote integrated development. Deeply integrate
Governance battery cathodes, lithium-rich manganese-based materi-
als, and sodium-ion batteries, laying the foundation for
internal resources and material advantages of China
Minmetals, and collaborate with external ecosystem
expanding applications in emerging fields. partners to jointly build a safe, efficient, and synergistic
new energy materials industrial chain.
The Company has established a three-tier ESG management system consisting of "Board decision-making - Strategy Committee management -
ESG Working Group execution," achieving a well-defined, efficient, and collaborative organizational structure that provides solid organizational
guarantees for ESG work. 01 02
Decision-making level Management level Executive level
Board of directors
Board of directors ESG Working Group
strategy committee
Identify and assess the Company's Implement the board's resolutions Coordinate and advance the
ESG risks, formulate ESG-related and policies regarding ESG work, implementation of ESG-related work,
policies, guidelines, systems, and review the Company's ESG risks, overseeing the regular collection, 03 04
objectives, deliberate and make execute and advance specific ESG reporting, and reviewing of ESG
decisions on relevant ESG matters, matters, and regularly report information, improving the efficiency
and oversee and evaluate the progress on ESG-related matters of statistical control over ESG
implementation of the Company's to the board. information and the effectiveness of
ESG-related practices. ESG efforts, and ensuring the efficient
execution and implementation of
ESG initiatives.
Stabilize the core business and Enhance employee capabilities and
explore new growth drivers. invigorate the workforce.
Strategy Based on existing stable customer relationships, continue
to expand cooperation with leading battery manufactur-
Improve the mechanisms for selecting, cultivating,
utilizing, and retaining talent, continuously revitalize
ers, accelerate entry into international markets, and existing talent and expand the talent pool, providing
broaden business scope in emerging application areas to strong support for high-quality development during the
create new growth drivers. "15th Five-Year Plan" period.
The Company adheres to the basic principles of "steadfastly strengthening the main business of lithium-ion battery cathode material industry,
steadfastly adhering to the policy of diversified industrial allocation, and steadfastly pursuing the direction of global development." With the
strategic positioning of becoming a "domestic first-class and internationally renowned supplier of new energy materials," the Company is
market-oriented. Based on precise market analysis, it rationally allocates resources, defines future development paths, and formulates its
development strategy by integrating internal and external environments and its own advantages.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report ESG Management
Impact, Risk and Opportunity Management Major Risk Management
Based on the Company's strategic objectives, 10 major risks were comprehensively assessed. A risk management responsibility list was
established, and full-cycle risk assessment and tiered management were implemented.
Based on its actual operations and business characteristics, and in accordance with the ISO 31000 risk management framework standard, the
Company has established a systematic, standardized, and proactive comprehensive risk management system. Through systematic identification,
assessment, and the formulation of response measures, the Company enhances its risk response capabilities and management level, effectively Control mechanisms: annual assessment, quarterly analysis, monthly tracking, and real-time monitoring.
preventing, controlling, and mitigating various risks to ensure stable operations.
refined zone-based early warning and tiered management, with targeted measures to drive risk
Control measures:
Risk Management Structure: Three Defense Lines prevention and control.
Each department
As the primary responsible party for risk management, each department implements risk Risk Trends During the Reporting Period:
First defense
management activities within its scope of duties, including risk information collection,
line
identification, assessment and monitoring, system improvement, implementation of
response measures, establishment of emergency mechanisms, and risk management
training.
the previous period
Compliance and risk control department In 2025, the Company experienced no major or above production safety incidents, no external litigation, and no regulatory penalties,
with the overall risk situation remaining stable.
As the centralized management department for risk management functions, it
Second defense
coordinates risk management activities across all departments, including organizing
line
annual risk assessments, maintaining risk category lists, tracking control status, oversee-
ing responses to major risks, and supervising and inspecting the implementation of risk
management by relevant departments.
Board audit committee, internal audit department
Third defense
Risk Culture and Responsibility-Driven Approach
Through internal control audits, special audits, and routine supervision and inspection,
line it monitors and evaluates risk management work, urges problem rectification, and
ensures the effective operation of the risk management system.
The Company continuously fosters a company-wide risk prevention and control culture, strengthening risk awareness and responsibility
implementation through diverse channels.
Risk identification Key Achievements in 2025 Training and publicity Responsibility mechanisms Business model
and assessment Enhance risk awareness and Establish and improve a safety and Implement the "Amoeba"
Conducted comprehensive, full-chain risk assessments across all levels, capabilities through routine environmental protection guarantee management model, promote
identifying 31 key risks. training, typical case studies, responsibility mechanism and for leverag- cost-conscious operations and
The compliance and risk control department and a series of initiatives ing to reduce risk, a responsibility-based profit-based assessment, and
leads all departments and subsidiaries in
Established a risk prevention and control framework centered on " 4 such as "Work Safety Month", mechanism that integrates designated strictly enforce rewards and
systematically identifying the risk categories mechanisms and 10 tools". "Fire Safety Awareness accountability, targeted supervision, and penalties.
faced by the Company based on its operational Month", "Quality Month", cross-departmental coordination for
management and business activities, compiling Developed "one risk, one strategy" response plans, formulating a total of and "Learn the Law at Three de-leveraging and risk mitigation, comple-
and regularly updating the risk list to ensure 356 prevention and control measures. Meetings". mented by a refined performance apprais-
dynamic adaptation to business development al system to hold all units accountable for
and changes in the internal and external Quantified 38 risk monitoring indicators, enabling dynamic tracking. risk management.
environment.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report ESG Management
Case Collaborative Risk Prevention and Control Mechanism
In 2025, the Company deepened its "integrated risk control" collaborative supervision system, focusing on key areas to conduct joint Issue Anticipated Risks or Opportunities Response Measures
risk inspections, identify and resolve prominent issues, and prevent risks and hidden dangers in key areas:
Supply disruptions, inventory risks, etc., Strengthen supply chain management;
Conducted collaborative supervision and inspections covering six major
may affect supply chain stability and practice responsible procurement;
Joint inspections in aspects: accounting information quality, fund payments, performance-related
thus product delivery. diversify supply chain structure; use
key areas entitlements, credit management, R&D expenditure, hedging, and trade
Supply chain information platforms for traceability
business management;
management management.
Collaborative prevention and Regularly held risk prevention and control meetings, carried out special Risks of technological change and talent Increase investment in technology R&D
control of risk of "accounts advance payment risk screenings, conducted item-by-item reviews of 30 shortage/loss may cause the Company and collaboration; optimize R&D fund
receivable, inventory, and advance payments, and formulated 5 optimization measures for advance to lose competitiveness in the industry. management; enhance talent attraction
contract assets" payment risk prevention; and development; enrich technology
Innovation-driven reserves.
Conducted quarterly joint special remediation actions for overdue receivables,
Special remediation for
cumulatively identifying overdue risks and issuing 107 collection recommen-
overdue receivables
dations, effectively reducing the proportion of overdue receivables;
See the Climate Change Response section for details.
Climate change
response
Established a compliance review mechanism for major decisions involving
Compliance review of "preliminary review by business departments - legal compliance review - final
major decisions review by General Counsel", cumulatively reviewing 47 major issues, effective-
ly preventing decision-making compliance risks.
Indicators
and Targets
Minmetals New Energy has deeply
cultivated its ESG system construction,
establishing a market benchmark for
responsibility through standardized
Issue Anticipated Risks or Opportunities Response Measures information disclosure and solid
sustainable development practices,
earning a Wind ESG AA rating. By virtue Wind ESG "AA" rating
on the STAR Market
of its outstanding ESG management
Product quality risks and inadequate Continuously optimize the quality performance, the Company has won
after-sales handling may lead to inspection and control system, promote awards such as Cailian Press's "2025
customer churn. quality informatization development, Best ESG Listed Companies on the STAR
Products and advocate a quality culture, and enhance Market", China Securities Journal's
services product after-sales services. "Third Guoxin Cup ESG Golden Bull
Award Top 100", and Value Online"2025
Listed Company ESG Value Communica-
tion Award". These multiple authorita-
tive honors attest to the Company's
Technical and management risks may Deploy data leakage prevention
core strength in the ESG field and
lead to customer privacy breaches, systems; regularly update systems;
highlight its responsibility and commit-
resulting in customer loss and unneces- enhance employee data security
Data security and ment to high-quality development.
sary litigation. awareness; conduct attack-defense
customer privacy
protection drills and emergency response.
Third Guoxin Cup "ESG Golden 2025 ESG Value Communication Awards for
Bull Award Top 100" Listed Companies
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report ESG Management
Stakeholder Engagement
Minmetals New Energy has always adhered to the concept of responsible development, deeply cultivated social responsibility practices, and attached great importance to the expectations and demands of various stakeholders. To this end, the Company has formulated a Stakeholder Policy and established a topic management list to
systematically identify, assess, and track the needs of government regulators, shareholders and investors, supply chain partners, customers, employees, and community members. On this basis, the Company has established a two-way communication mechanism that empowers both sides, precisely listening to the demands of all
parties, incorporating professional suggestions, promoting targeted and continuous improvement of ESG management, and achieving alignment between corporate development and the expectations of multiple stakeholders.
Stakeholders
Government and Shareholders and Community and
Customers Suppliers and partners Employees Environment
regulatory authorities investors public
Compliance in operation Improvement of Technological innovation Supply chain management Protection of basic rights Green and low-carbon Participation in rural
corporate governance and interests development revitalization
Integrity construction Protection of customers' Fair competition
Protection of shareholder rights and interests Personal development Ecological environment Supporting education
Intellectual property Integrity and mutual
rights protection initiatives
protection Product quality and safety benefit Employee benefits
Investor relations
Employee care
Stakeholder management
Expectations
Information disclosure
Risk management
Improvement of the Enhancement of R&D management system Improvement of the Establishment of fair Green transformation and Pairing-up and joint
compliance system operation and manage- procurement system promotion channels development development
Customer satisfaction
ment capabilities
Strengthening of surveys and complaint Honest performance of Professional training and Green technological Consumption assistance
anti-corruption education Investor surveys and channels contracts career development innovation
Donations for student aid
and training communications
Strict governance and Signing of cooperation Employee satisfaction
Intellectual property Publication of regular management agreements survey
Communication
protection system reports, interim
and Response Information security Implementation of work
announcements and
protection safety
performance briefings
Daily communication
Comprehensive risk
management and control
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report ESG Management
Material Issues
Validated by the Company's board of directors and external experts, the following topics are identified as material topics and serve as the focus
of the Company's management and report disclosure. Products and services, and supply chain management are identified as topics of double
materiality.
Very important
To better respond to the diverse expectations and demands of stakeholders, Minmetals New Energy, based on the two dimensions of "financial Anti-commercial bribery and
materiality" and "impact materiality", comprehensively considers the potential impact of each topic on business strategy implementation and anti-corruption
financial performance. Taking into account industry development trends, policy and regulatory updates, and the core concerns of stakeholders, Stakeholder Engagement Compliance and risk
the Company systematically identifies key ESG topics and conducts materiality analysis through a four-step process: "conduct background Products and services
Employee rights and care
management
research - establish a topic list - assess and confirm materiality - review and confirm topics". Employee Recruitment
and Employment Work safety
In 2025, based on research into standards such as GRI and SASB, as well as topics emphasized by major rating agencies, the Company established Protection of
an ESG topic library aligned with its own business characteristics. We have identified key topics for the current stage and will use them as entry shareholder rights Anti-unfair competition
points and core drivers for ESG management. Going forward, the Company will further deepen stakeholder communication and continuously Employee training and
Intellectual property protection
optimize the materiality assessment process. development
Corporate
Impact materiality
Pollutant Supply chain management
governance
Waste and pollutant emissions Discharge
Energy utilization
ESG governance
Social contribution
Environmental compliance Innovation-driven
Circular economy management
Conducting background research
Ecosystem and biodiversity conservation Data security and customer
Climate change response privacy protection
Relatively important
Clarify the Company's business scope, operational areas, and stakeholder groups. Identify potential
issues by collecting and analyzing policies and regulations, industry information, peer practices, and Due Diligence
Water resource
key concerns in the capital market.
utilization Rural Revitalization
Establishing a issue list
Relatively important Financial materiality Very important
Through communication with stakeholders including government and regulatory authorities,
shareholders and investors, customers, suppliers and partners, fully understand the opinions of Materiality Matrix
internal and external stakeholders on the Company's material topics, identify impacts, risks and
opportunities, and compile a topic list.
Governance issues Social issues Environment issues
Anti-commercial bribery Data security and customer Environmental compliance
Assessment and determination of materiality
and anti-corruption privacy protection management
Conduct assessments of financial materiality and impact materiality, and integrate national policies, Protection of shareholder Supply chain management Waste and pollutant emissions
capital market concerns and peer performance to generate an analysis of material ESG topics. rights
Products and services Ecosystem and biodiversity
Anti-unfair competition conservation
Intellectual property protection
ESG governance Circular economy
Employee rights and care
Party building leadership Clean energy opportunities
Employee training and develop-
Issue review and confirmation Corporate governance ment Water resource utilization
Compliance and risk Social contribution Energy utilization
The Company's management reviews and confirms the results of the material topic analysis, and management
Work safety Climate change response
clarifies the key objectives and implementation plans for future ESG management.
Innovation-driven
Green Energy in Action,
Painting a Shared
Future with Green
Minmetals New Energy deeply embraces the philosophy of ecological civilization, with green and low-carbon as the
backdrop for its development. It integrates ecological protection and resource-efficient utilization into all
dimensions of its production and operations. Through systematic governance, concrete actions, and consistent
practice, the Company paints a picture of harmonious coexistence between ecology and development, fulfilling its
role as a central state-owned enterprise to solidify the foundation for green development and empower the
low-carbon transformation of the industry.
Response to the United Nations Sustainable Development Goals (SDGs)
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Smart Resource Empowerment,
The Company strictly complies with the Energy Conservation Law of the
People's Republic of China, the Energy Law of the People's Republic of
China, and other laws and regulations. Based on its operational
Breaking New Ground in Recycling
realities, it has formulated internal management policies such as the
Measures for the Management of the Energy Conservation and Ecological
Environmental Protection Responsibility System, the Measures for Energy
Conservation and Ecological Environmental Protection Management, and
Adhering to ecological priority and green development, Minmetals New Energy integrates energy conservation, carbon reduction, water conser- the Measures for Energy Conservation and Ecological Environmental
vation, efficiency improvement, and resource recycling into its entire production and operation process. It continuously improves its manage- Protection Statistical Monitoring Management. It has established an
ment system, strengthens policy implementation, advances technological innovation, enhances resource utilization efficiency, and reduces "Ecological Environmental Protection and Carbon Peak & Carbon
As of the end of 2025, two subsidiaries
environmental load, injecting powerful green momentum into its high-quality development. Neutrality Leading Group" to coordinate the Company's energy
had obtained ISO 50001:2018 energy
conservation and carbon reduction efforts. Each subsidiary has
management system certification.
simultaneously established its own energy management system,
developed supporting policies such as Energy Management Measures
and Energy Conservation Management Measures tailored to its business
Energy Structure Optimization and Efficient characteristics, set up specialized energy management departments,
and built dedicated energy statistics and management teams. These
teams strictly follow energy and carbon emission statistical scopes
Utilization and calculation methods to compile relevant monitoring data for
energy conservation and emission reduction, conduct regular
monitoring and evaluation, and implement assessments.
The Company regards the efficient and clean use of energy as a core lever for promoting high-quality development. It strictly complies with
energy-related laws, regulations, and policy requirements, improves its energy conservation management system, and coordinates the continu- In line with the overall requirements for green and low-carbon development, the Company strictly implements national laws, regulations, and
ous optimization of various energy-saving and carbon-reduction initiatives. It scientifically sets long- and short-term emission reduction targets industrial policies. Based on its actual development, industry characteristics, and strategic planning, it scientifically sets energy management and
and steadily advances the low-carbon transformation of its energy mix and the enhancement of energy utilization efficiency. conservation goals, ensuring that these goals are clearly defined, trackable, and achievable.
The Company focuses on efficient energy utilization and energy conservation. Through various initiatives such as energy-saving publicity,
equipment procurement, and energy recovery, it promotes energy-saving concepts, drives clean production, continuously taps into energy-sav-
ing potential, effectively reduces energy consumption, and comprehensively enables the Company's green and low-carbon high-quality develop-
The Company's energy use covers core activities such as office operations and production. The main types of energy involved include
ment.
electricity, steam, natural gas, and solar energy. The Company primarily obtains energy through market-based procurement, mainly
purchasing electricity, natural gas, and steam, while also making reasonable use of clean energy such as solar power. This creates a
diversified, low-carbon energy supply mix that balances energy supply stability with environmental protection.
In 2025
Total energy consumption Direct energy consumption Indirect energy consumption
Electricity 111,224.67 tce 13,200.71 tce 98,023.96 tce
Market-Based Procurement
es
Steam Typ
y
rg
ry Ene
M ain E
im a
Energy-saving publicity
ds
Pr
ho
Natural Gas
ne
gy
et
M
r
Acq
u isiti o n
Solar Energy Utilization
Leveraging opportunities such as "Energy Conservation Publicity Week" and "National Low-Carbon Day," the Company
promotes energy-saving and low-carbon concepts and knowledge around the event themes through posters, brochures, and
Solar Energy videos played on cafeteria electronic screens. It advocates for a simple, moderate, green, and low-carbon lifestyle and produc-
tion method, enhancing the low-carbon awareness of all employees. During the publicity week, the Company displayed 8
banners, 14 posters, played videos 20 times, and distributed over 90 pieces of promotional materials.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Procurement of energy-efficient production equipment Green buildings
The Company continuously strengthens the procurement management of key energy-using equipment. For newly purchased New projects of the Company are designed and implemented in strict accordance with relevant technical standards and
energy-consuming equipment in new, renovation, and expansion projects, it requires that the energy efficiency level of the specifications for building energy efficiency. For example, photovoltaic panels are installed on roofs, thermal insulation decora-
equipment specified in bidding documents and contracts must reach Level 2 or above. tive panels are used for exterior walls, and thermally broken aluminum profiles are used for exterior windows. Its subsidiary,
Changyuan New Energy, has implemented sunken green spaces, landscape water features, and other green spaces with water
storage functions. Water-saving irrigation methods such as micro-sprinklers are used for green areas, and lighting in public
spaces is controlled by zone and infrared sensors, practicing the concept of green development.
Addition of energy-efficient temperature control equipment
The Company has added automatic control valves for chilled water to its lithium iron phosphate grinding equipment to prevent
Green transportation
refrigeration equipment from running idle and wasting energy.
The Company optimizes logistics processes throughout the entire supply chain and uses electric vehicles to reduce the
Utilization of waste heat, pressure, and energy cascade utilization environmental impact during warehousing and transportation. In warehouse management, based on product characteristics,
it optimizes storage and picking models, rationally plans warehouse layouts, and minimizes the distance of goods movement.
For transportation equipment, it replaces traditional diesel forklifts with electric forklifts, significantly reducing exhaust
emissions and noise pollution while lowering energy consumption and operating costs.
The Company continues to promote industrial waste heat recovery. Its subsidiary,Goldshine Energy, continues to implement
waste heat recovery from the deammoniation tower reboiler, using the waste heat from condensate to heat the pure water
required in the production process, reducing steam consumption by approximately 5,000 tons and CO₂ emissions by approxi-
mately 1,520 tons annually.
Green office
The Company comprehensively promotes the concept of green office practices, dedicated to creating an environmentally
friendly office environment.
Clean energy
For air conditioning usage In office work For commuting
In 2025
it specifies a minimum tempera- it has established electronic it uses electric shuttle buses and
The Company actively promotes the clean and low-carbon transformation of its
ture setting of 26°C in summer and document management and encourages employees to prioritize
energy mix, fully implementing distributed photovoltaic power generation rooftop distributed PV generated
a maximum of 20°C in winter, while sharing models to promote public transportation.
projects on factory rooftops, developing and using clean energy, and expanding
regularly maintaining air condition- paperless offices.
ing equipment to ensure energy-ef-
ficient operation.
new pathways for energy utilization.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Case Turning Rainwater Into "Living Water": A New Practice in Water Conservation at the Plant
Participation in green power trading
Changyuan New Energy has constructed two sets of rainwater collection facilities. After being collected and treated, rainwater from
the factory area is reused to supplement the circulating cooling towers. This initiative saves approximately 120,000 tons of tap water
The Company actively participates in the green electricity market, consumes green power, and reduces the proportion of fossil
annually, accounting for about 10% of the total annual water consumption.
energy.
In 2025
Case Full-Cycle Wastewater Recycling for Efficient Water Conservation
Total Renewable Electricity Consumed by the Company Purchased Green Electricity Certificates Renewable Energy Proportion
Throughout the year, Minmetals New Energy treated approximately 600,000 tons of wastewater through its MVR system for evapora-
million kwh million kwh % tion and crystallization, recovering 558,000 tons of condensate and producing 31,000 tons of sodium sulfate. The condensate is
treated by reverse osmosis to produce pure water for reuse in production. Meanwhile, by controlling the conductivity of the concen-
trated water from pure water production, secondary water production is carried out. The remaining concentrated water is used for
replenishing the cooling water towers at the oxygen generation station and the cathode material workshop, as well as for leaching in
the spent battery recycling process. In 2025, the water recycling rate reached 92.78%, placing the Company at a leading level in the
industry.
Intensive Water Resource Management and
Recycling
Water nourishes all things, and green development opens a new chapter. The Company regards intensive, economical, and efficient water
recycling as an important practice for green development, steadily advancing the construction of a water-efficient enterprise. It strictly complies
Water conservation goal�
with the Water Law of the People's Republic of China, the Water Pollution Prevention and Control Law of the People's Republic of China, and other
relevant laws and regulations, and has formulated internal management policies such as the Management System for Water, Electricity, Steam, and
Natural Gas. It clarifies management responsibilities and control requirements, with the Safety and Environmental Protection Department
coordinating the production support departments of each subsidiary for water resource management.
Achieve a 95 % water reuse rate by 2030.
The Company places high
importance on the efficient
recycling of water resourc-
Water conservation publicity es, scientifically sets phased Progress during the reporting period�
and medium-to-long-term
water-saving goals, and The reuse water rate in 2025
The Company strengthens water conservation publicity through methods such as posting water-saving signs, enhancing
the awareness of all employees regarding water resource conservation and management. continuously improves
water resource utilization is %.
efficiency.
Water intake control and recycling
Achieve a water reuse rate of 92 %.
The Company actively promotes clean production processes and strives to build a water-efficient enterprise. Through
process optimizations such as using ammonia water and liquid caustic soda instead of ammonia-alkali mixed solutions,
cascading use of washing water, and recycling condensate from the MVR system, it achieves source water reduction and
emission reduction, improving water resource utilization efficiency. By using condensate instead of fresh water, water
recycling, and rainwater reuse, it reduces fresh water consumption and wastewater discharge. In 2025, the Company
treated 590,000 tons of wastewater and recovered 550,000 tons of condensate, primarily used for producing pure water,
replenishing cooling circulating water, and leaching in spent battery recycling processes.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Building a Circular Economy System Case Recycling of Valuable Metals such as Nickel and Cobalt
Goldshine Energy utilizes its spent battery recycling production line to self-process nickel-containing waste residues such as wastewa-
ter treatment sludge and high-magnetic materials. It successfully applied to the Department of Ecology and Environment of Hunan
Upholding the path of circularity, fostering a green foundation. The Company strictly complies with the Circular Economy Promotion Law of the
Province for an operating permit exemption for the point-to-point directional utilization of nickel-containing waste from Changyuan
People's Republic of China and other relevant laws and regulations. It has formulated internal management policies such as the Solid Waste
New Energy, achieving internal circulation and resource utilization of nickel-containing waste.
Management Measures, Measures for the Disposal of Idle and Obsolete Materials, Raw Material Pallet Recycling, Recycled Pallet Cleaning, and Recycled
Pallet Limit Sample. Focusing on the core objectives of resource efficiency, waste reduction and minimization, and resource valorization, the
Company integrates circular economy principles into the entire value chain of its production and operations, establishing a closed-loop develop-
ment model of reduction, reuse, and recycling to support efficient resource utilization.
Case Self-Developed Carbon Slag Purification for High-Value Resource Utilization
Raw materials
Mainly include precursors, lithium salts, sulfates, saggars, additives, pallets, packaging materials, etc. By optimizing its production processes,Goldshine Energy independently developed a carbon
slag purification technology to further improve the recovery rate of resources such as nickel
and cobalt. The patent A Method for Recycling Graphite Anode, Anode Material, and Lithium-Ion
Packaging materials Battery was granted as a national invention patent, achieving high-value resource utilization.
Paper-based: Mainly cartons, paper tubes, etc., all compliant with national environmental protection
and plastic restriction requirements.
Plastic-based: Mainly plastic pallets, aluminum foil bags, PE ton bags, plastic bags, plastic films, etc., all
free of prohibited hazardous substances.
Based on its entire production and operation process, the Company has built a comprehensive circular economy management system,
implementing multiple measures to ensure the effective implementation of circular economy initiatives and comprehensively improve resource
utilization efficiency.
Optimized packaging material management
Standardized material requisition Use of renewable resources
With a full lifecycle green packaging strategy as its core, the Company systematically advances initiatives across three dimensions:
A strict material requisition system is implemented, defining The pallets used for ternary products are made of high-density source reduction, packaging redesign, and circular reuse, comprehensively reducing the environmental impact of the entire packaging
standards and procedures to prevent excessive requisitioning polyethylene (HDPE) recycled material, which can be efficiently chain and building a low-carbon, recyclable, and traceable green packaging system.
and idle waste. Resource consumption is controlled at the source, recycled through physical regeneration processes. The
promoting the efficient use of various production materials such performance of the recycled material retains over 93% of that of
as raw materials and packaging materials, eliminating resource virgin material, effectively saving virgin resource consumption
waste. while promoting waste reduction and resource utilization.
Packaging material transparency Packaging weight and volume reduction
Proactively disclose the types of Source reduction: Reduce packaging grammage and raw material
Reduction of waste generation Enhanced waste valorization materials used in product packag- consumption while meeting protection, transportation, and safety
ing, their environmental attributes, requirements. Lightweight redesign of internally used ton bags and
and usage specifications. Fully precursor ton bags has been implemented, increasing unit packaging
Adhering to the principle of source reduction and process control, A full lifecycle waste management system has been established. disclose packaging material lists, capacity and reducing total ton bag usage.
the Company works on three fronts: equipment upgrading, From raw material procurement, process control, and enhanced supplier environmental qualifica- Packaging redesign: Optimize packaging structures to improve loading
management optimization, and design innovation to continuous- management, the Company reduces solid waste generation and tions, and hazardous substance capacity and space utilization, reduce transport volume, and achieve
ly reduce the amount of waste generated during production, promotes valorization. Various types of waste generated from test reports, ensuring complete synergies in carbon reduction, cost savings, and efficiency gains.
improve production efficiency, and reduce resource waste. production operations are meticulously sorted, recycling process- and transparent information
es are standardized, and treatment methods are optimized to Circular reuse: Promote the use of recyclable pallets instead of traditional
disclosure without selective
maximize resource conservation and efficient utilization. single-use packaging, reducing the consumption of disposable packaging
disclosure.
materials.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
The Company has completed the lightweight upgrade of
packaging by optimizing the packaging structure. The goal covers all company operations and all relevant packaging categories, including factory
packaging, transit packaging, and logistics transport packaging, achieving unified management
across all scenarios, the entire chain, and full coverage. The Company fully implements packaging
Enhance loading rates and reduction design, eliminates excessive packaging, reduces packaging waste at the source, and
Under the premise of meeting Goal for eliminat- gradually phases out the use of non-recyclable and non-degradable packaging materials, prioritizing
transportation safety standards, transportation efficiency,
ing packaging environmentally friendly, recyclable materials.
reduce logistics energy
waste
consumption and carbon
emissions.
The weight of the packaging To Decrease by
ton bag decreases from
Case From Recycling to Regeneration: Building a Green Circular Battery Ecosystem
The Company has established a "material - battery - material" green circular system, focusing on the recovery of retired power
batteries and ternary cathode waste materials. Through the process of "recycling - dismantling - purification - regenerated materials",
To continuously deepen circular economy practices and improve resource utilization efficiency, the Company has set sustainable development
it achieves efficient regeneration of nickel, cobalt, manganese, and lithium, forming a green manufacturing system where waste
goals for circular materials management based on its operational realities and industry trends, ensuring the orderly progress and effective
remains within the loop and resources circulate.
implementation of circular economy work.
Recycle Refine
High-Efficiency Recycling of
Nickel, Titanium, Manganese,
Continuously increase the proportion of recycled raw materials procured and used, precisely and Lithium
matching the needs of various customer projects. In 2025, the Company set annual targets of no less
than 10% for cobalt recovery and no less than 4% for nickel recovery, both of which were fully Green manufacturing system with
waste materials not leaving the
Goal for increasing raw achieved, further enhancing the value of resource recycling and responding to policy requirements
cycle and resource circulation
for promoting the application of recycled materials. Retired Power Batteries/ Disassembly Recycled
material recycling
Ternary Cathode Waste Materials
Case Minmetals New Energy's Green Supply Chain Innovation Practice Showcased at UN COP30 Summit
The Company places great emphasis on the green and low-carbon transformation of packaging
materials. By signing green material supply agreements with packaging suppliers, it continuously
On November 19, 2025, at the 30th Conference
increases the proportion of environmentally friendly packaging, reducing virgin resource consump-
of the Parties to the United Nations Framework
tion and environmental impact.
Convention on Climate Change held in Belém,
Brazil, Minmetals New Energy's practice in
resource utilization of spent power batteries
Medium-to-long-term goal: By the end of 2030, the proportion of recyclable packaging materi-
Goal for increasing was selected as one of the top ten cases in the
als (e.g., pallets) used shall be no less than 50%.
packaging material Central SOE Green and Low-Carbon Supply Chain
circularity Annual goal: In 2025, the Company set and fully achieved an annual target of 40% for the use Development Report (2025) and released
of recycled pallets, maximizing the circular value of packaging materials and reducing the globally, demonstrating the responsibility of
consumption of virgin packaging materials. central state-owned enterprises in global
climate governance.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Fulfilling Ecological Responsibility - Case Minmetals New Energy Holds 2025 Annual Safety and Environmental Protection Work Conference
Committed to Going Green On January 21, 2025, Minmetals New Energy
held its annual safety and environmental
protection work conference, studying General
Secretary Xi Jinping's important remarks on
Minmetals New Energy has always adhered to the principles of legal compliance and green development, deeply embedding environmental
work safety and Xi Jinping's thought on ecologi-
management into every aspect of its production and operations. By improving its institutional system, consolidating principal responsibilities,
cal civilization, summarizing past work, and
strengthening risk prevention and control, and systematically advancing environmental compliance management, full-process pollutant control,
deploying annual tasks. The conference
and ecological and biodiversity protection, the Company promotes harmonious coexistence and synergy between the enterprise, nature, and
organized the signing of safety and environmen-
society.
tal protection responsibility agreements and
put forward specific requirements for the year's
work, further strengthening safety and environ-
mental protection management responsibili-
ties, clarifying the direction and implementation
Environmental Compliance and Risk Preven- path for the year, and laying a solid safety and
environmental protection foundation for the
Company to adhere to the red line of work
tion and Control safety and strive to become a global leader in
the new energy materials industry.
The Company strictly complies with the Environmental Protection Law of the People's Republic of China, the Law of People's Republic of China on
Environmental Impact Appraisal, the Measures for the Supervision and ental Measures for the Supervision and Administration of Energy Saving and The Company regularly communicates with local government regulatory authorities, customers, and other stakeholders to understand their
Ecological Protection for Central Enterprises, and other laws and regulations. It has formulated internal management policies such as the Measures expectations and demands regarding the Company's environmental management, and incorporates their requirements into the Company's
for the Management of the Energy Conservation and Ecological Environmental Protection Responsibility System, the Measures for Energy Conservation management scope. At the same time, the Company has established good communication mechanisms with surrounding communities, closely
and Ecological Environmental Protection Management, the Measures for Energy Conservation and Ecological Environmental Protection Statistical monitoring feedback from residents to avoid inconveniences caused by deficiencies in environmental management. It earnestly fulfills its
Monitoring Management, and the Comprehensive Emergency Response Plan for Environmental Incidents, and has begun drafting the Measures for the corporate social responsibility, promoting harmonious coexistence between the enterprise and the community.
Evaluation of Green Development and Ecological Environmental Protection Management, effectively fulfilling its primary responsibility for ecological
and environmental protection.
The Company continuously establishes and improves its ecological and environmental protection management system, setting up an "Ecological
Environmental Protection and Carbon Peak & Carbon Neutrality Leading Group", with the Safety and Environmental Protection Department
Collaborative Pollutant Control and
Closed-Loop Management
responsible for environmental protection supervision and management. It continuously optimizes and improves the energy conservation and
environmental protection responsibility system, formulating a responsibility list for energy conservation and environmental protection, breaking
down and refining energy conservation and environmental protection goals and responsibilities, and organizing each subsidiary to sign responsi-
bility agreements layer by layer, achieving full and process-wide coverage of responsibilities. At the same time, in line with the Company's relevant
assessment management systems, the achievement of energy conservation and environmental protection goals is incorporated into the The Company regards the proper management of pollutants as a lifeline for its stable and long-term development. It strictly complies with the
performance evaluation system of the heads of each unit, ensuring that each subsidiary's primary responsibility for energy conservation and Water Pollution Prevention and Control Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of
environmental protection is firmly established. Atmospheric Pollution, the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste, the Law of the
People's Republic of China on the Prevention and Control of Noise Pollution, and other laws and regulations. Based on its actual situation, it has urged
To effectively prevent and respond to environmental emergencies, the Company regularly organizes the identification and evaluation of environ-
subsidiaries to establish management policies such as the Measures for Wastewater and Waste Gas Management, the Measures for Solid Waste
mental factors, dynamically updates them, and formulates corresponding control measures for major environmental risks. It regularly organizes
Management, the Measures for Noise Management, and the Measures for Soil and Groundwater Management, promoting the comprehensive and
ecological and environmental protection risk investigations and remediation to prevent and mitigate major environmental risks. Based on its
effective treatment of wastewater, waste gas, noise, and solid waste.
actual production conditions, it has formulated the Emergency Plan for Environmental Incidents and completed the filing with the ecological and
environmental authorities. Through practical drills, the Company tests its rapid response, emergency handling, and rescue capabilities. In 2025, Through institutionalized and checklist-based approaches, the Company continuously establishes and improves its pollutant emission manage-
it organized 9 emergency drills for scenarios such as wastewater leakage, solution leakage, and hazardous waste leakage, effectively enhancing ment system, compiling a clearly defined and reasonably divided energy conservation and environmental protection responsibility list. The Safety
awareness of environmental risks and emergency response capabilities. and Environmental Protection Department is responsible for daily energy conservation and environmental protection management, staffed with
full-time environmental protection personnel, supervising each business department to strictly implement various pollution prevention
measures, conducting regular supervision and inspection, driving problem rectification, and implementing assessments, forming a top-down,
comprehensive, and efficient energy conservation and environmental protection governance system.
Referring to the ISO 14001:2015 environmental management system and its own management requirements, the Company builds and operates
its environmental management system at a high level. In October 2025, the Company and its subsidiaries all passed the third-party certification
audit for ISO 14001:2015, with a 100% certification rate.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Waste Gas Management
The Company precisely deploys pollution prevention and control measures for waste gas, focusing on the optimization of pollutant treatment
technologies and the construction, operation, and maintenance of prevention facilities, establishing comprehensive and full-process waste gas
pollution prevention and control measures.
The Company sets annual pollutant emission targets, continuously
monitors various pollutant emissions, and actively advocates for Exhaust gas pollutant treatment
harmonious and sustainable development of the enterprise's technologies and methods
economy and the social environment. It signs annual safety and Corresponding exhaust gas prevention facilities are installed
environmental protection target responsibility agreements with based on production facilities and their emission conditions.
Ammonia gas is treated by dilute sulfuric acid spray absorp-
each subsidiary, and each subsidiary actively adopts and Regular environmental hazard inspections are conducted,
tion; sulfuric acid mist is treated by alkali liquor spray
formulates annual environmental management targets, fully and and identified issues are rectified promptly. At the same
absorption; dust is treated by sintered plate dust collection,
accurately implementing precise, scientific, and lawful pollution time, daily operation and maintenance of pollution preven-
baghouse dust collection, cyclone dust collection, and water
control. tion facilities are managed to ensure normal operation.
curtain dust collection; organic waste gas is treated by RTO
(Regenerative Thermal Oxidizer) incineration. Third-party testing agencies are regularly commissioned to
conduct exhaust gas testing to ensure compliance.
Construction and operation of exhaust
gas pollution prevention facilities
The Company continuously strengthens exhaust gas treatment and emission control. Air pollutant emission performance remains stable and
Annual Target 2025 Progress controllable. In 2025, among the exhaust gas emitted, particulate matter emissions were 1.3 tons, sulfur oxide emissions were 1.8 tons, and
nitrogen oxide emissions were 6.52 tons.
Wastewater, exhaust
gas, noise compliance rate compliance rate for exhaust gas, wastewater,
noise, and other pollutants Wastewater Management
Annual Target 2025 Progress
Construction and operation
General solid waste 100 % 100 %
Wastewater pollutant treatment
technologies and methods
of wastewater pollution
prevention facilities
disposal rate disposal rate for general solid waste
Goldshine Energy implements wastewater segregation for its precursor The Company strictly implements the
wastewater. Medium- and low-concentration wastewater is treated by a principle of "rainwater and sewage
membrane concentration process. The membrane concentrate effluent diversion, clean water and wastewater
Annual Target 2025 Progress enters the pure water system for treatment and is then recycled back to diversion". Rainwater is collected by
the production line. The concentrated water enters the ammonia rainwater pipes and discharged into
stripping and MVR system for further treatment. High-salt, high-ammo- municipal rainwater pipes via rainwater
Hazardous waste 100 % 100 %
nia-nitrogen wastewater is treated by processes such as steam stripping
deamination, plate-and-frame filtration, pH adjustment, MVR evapora-
outlets. Domestic sewage originates
from office and living areas, is pre-treat-
compliant disposal rate compliant disposal rate for hazardous waste
tion crystallization, and reverse osmosis. The recovered condensate is ed by grease traps and septic tanks, and
used to produce pure water, and the concentrated water serves as is discharged into municipal sewage
make-up water for the cooling circulation system, achieving zero pipes via domestic sewage outlets.
discharge of heavy metal-containing production wastewater. The sodium Production wastewater is collected in
Annual Target 2025 Progress
sulfate produced by evaporation crystallization is sold as a product. collection tanks in each workshop,
Changyuan New Energy treats its lithium iron phosphate wastewater by pumped to the wastewater treatment
Waste sorting management
flocculation sedimentation, multi-media filtration, carbon filtration, and
membrane system. The treated clean water is reused as make-up water
for the cooling circulation system, while the concentrated water enters
station, treated, and reused, with no
external discharge. In 2025,
wastewater treatment facilities operated
the
coverage rate coverage rate for waste sorting management
the MVR system for treatment and is then reused. effectively.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Case Minmetals New Energy Implements Wastewater Segregation and Membrane Concentration Technical Upgrades
Ecosystem and Biodiversity Conservation
In 2025, Changyuan New Energy and Goldshine Energy, through separation of wastewater by quality and membrane concentration
technical upgrades, reduced the amount of wastewater entering the MVR system by approximately 160,000 tons, saving about 5.7
million kWh of electricity, steam about 14,000 tons annually and reducing carbon emissions by approximately 7,200 tons per year. The Company consistently upholds the concept of ecological symbiosis, complies with international conventions such as the Convention on Biologi-
cal Diversity, strictly adheres to laws and regulations such as the Law of People's Republic of China on Environmental Impact Appraisal and the
Regulations on Environmental Protection Management of Construction Projects, and implements relevant directives such as the Opinions on Further
Strengthening Biodiversity Protection, the China Biodiversity Conservation Strategy and Action Plan (2023-2030), and the Notice on Strengthening the
Management of Ecological Protection Redlines (Trial). It has issued a biodiversity protection policy and a supply chain biodiversity protection control
process, comprehensively establishing a solid foundation for compliant development. The Company works with value chain suppliers, partners,
Noise Management and other stakeholders to systematically identify and manage various factors affecting biodiversity, control risks and seize opportunities, and
proactively take appropriate measures to minimize impacts on biodiversity, promoting harmonious coexistence between humans and nature.
The Company has conducted environmental impact assessments for all production and construction projects. Each project complies with the
The Company strictly complies with the relevant provisions of the Law of the People's Republic of China on the Prevention and Control of Noise requirements for ecological redlines, environmental quality bottom lines, and resource utilization ceilings, and none are listed as prohibited
Pollution, has formulated the Noise Management Measures, established a noise monitoring mechanism, and comprehensively applies various projects under the negative list for environmental access.
noise reduction methods to strictly control the generation and spread of noise at both the source and during transmission. At the same time, it
actively promotes noise reduction retrofits, continuously improving noise prevention and control effectiveness, and striving to create a quiet and The Company strictly implements biodiversity protection requirements; none of its construction projects involve ecological protection redlines or
harmonious surrounding environment. ecologically sensitive areas, and all are located within industrial parks. After project construction, vegetation is restored promptly, achieving 100%
greening. Among them, Changyuan New Energy has planted over 900,000 new camellia, azalea, osmanthus, and other trees, laid over 60,000
square meters of turf, and stocked ornamental ponds with more than 300 fish such as carp and crucian carp over the past three years. At the
same time, the Company places great emphasis on biodiversity protection, regularly monitoring and assessing the impact of its production and
Waste Management operational activities and products on the regional ecological environment and animal and plant biodiversity. In 2025, the Company had no
significant impact on the ecological environment or biodiversity.
The Company strictly implements the requirements for solid waste reduction, resource utilization, and harmlessness. It takes measures from raw
materials, processes, and management to reduce solid waste generation, strengthen comprehensive utilization of solid waste, and minimize its
hazards. At the same time, the Company has established a comprehensive system for solid waste classification, storage, and transportation to
ensure proper waste treatment.
General industrial solid waste
The Company has constructed general solid waste warehouses in accordance with the Standard for Pollution Control on the
Storage and Disposal Site for General Industrial Solid Wastes (GB18599-2001).General solid waste is temporarily stored by catego- In the past three years, Changyuan New
ry in these warehouses after generation. Contracts are signed with qualified recycling and utilization units, and the waste is Energy has grown camellia trees, azaleas,
regularly sold and recycled. osmanthus, and other plants
Hazardous waste Over 900,000 plants Laid with Turf
Each subsidiary has constructed hazardous waste temporary storage warehouses in
accordance with the Standard for Pollution Control on Hazardous Waste Storage
Over 6,0000 m2
Restore vegetation promptly after project
(GB18597-2023). Disposal contracts are signed with qualified hazardous waste management
completion and achieve
units. Hazardous waste is collected by category after generation, stored in separate zones
within the hazardous waste warehouses, and labeled with hazard identification signs. It is
regularly transferred and disposed of by hazardous waste management units, with transfer
manifests completed.
Ornamental ponds stocked with carp,
crucian carp, and other fish species
Domestic waste
Domestic waste is collected at designated points and entrusted to
sanitation departments for timely removal.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Pursuing "Dual Carbon" goals -
Empowering the Future Decision-making level Management level Executive level
Minmetals New Energy has integrated climate governance into its overall strategy, establishing a climate governance framework characterized by
scientific decision-making, efficient management, and strong execution. It systematically identifies climate risks and opportunities, conducts It regularly assesses the risks and covering the formulation and The Science and Technology
scenario analysis and adaptability assessments, and coordinates greenhouse gas management, full lifecycle product carbon footprint manage- opportunities brought by climate implementation of medium- to Promotion Department coordinates
ment, and collaborative actions with stakeholders to support the achievement of the "dual carbon" goals and promote green development in the change and formulates climate long-term plans, annual plans, and the Company's climate and "dual
industry. actions. related policies. carbon" actions.
Climate-Related Governance The Company's climate-related governance bodies and personnel possess professional backgrounds and knowledge in climate change,
proficiently use climate-related verification tools, and are familiar with relevant research methods and regulations, providing clear direction and
professional advice for the Company's response to climate change.
Based on stakeholder input and actual circumstances, the Company has prepared the Minmetals New Energy Carbon Neutrality Development
Report, fully identifying and considering sustainability-related risks and opportunities such as climate change, with a focus on key areas including
The Company continuously builds and improves its climate-related governance structure, forming a top-level climate carbon emission management, product carbon footprint management, and energy management. At the same time, it has formulated energy-sav-
governance design with the Board of Directors as the highest decision-making body. The Board is responsible for the ing and carbon-reduction targets and assessment criteria for the 2025-2027 term, incorporating these indicators into the annual performance
final review and approval of the Company's climate transition strategy, climate-related targets, and action plans. The evaluations of each subsidiary, directly linked to annual performance, promoting the implementation of energy-saving and carbon-reduction
ESG Working Group and the "Ecological Environmental Protection and Carbon Peak & Carbon Neutrality Leading goals through an institutionalized, measurable approach.
Group" serve as permanent decision-making and supervisory bodies for climate-related matters, with the core function
of ensuring that climate actions are highly coordinated with and orderly advanced alongside the Company's overall Decision-mak-
development strategy. ing level
Climate-Related Strategy
As the core coordinating body for climate transition work, management is responsible for formulat-
As global efforts to address climate change deepen, climate challenges and development opportunities are accelerating their intertwined
ing climate strategy objectives, overall planning, identifying and assessing climate-related risks,
evolution. The increasing frequency of extreme weather events, tightening global low-carbon policies, and the growing demand for green and
coordinating across departments, and reporting to the Board. The ESG Working Group, under the
low-carbon products are collectively shaping a new operating environment for the industry. The Company maintains a clear understanding and
guidance of management, performs execution and supervision functions, specifically responsible
strategic judgment of this situation: climate risk is a major issue that requires proactive management, and as a core player in the battery materials
for refining climate-related plans, supervising action plans, tracking progress, and evaluating Management sector, deeply participating in the global energy transition is also a significant opportunity for the Company to adapt to trends and achieve
implementation effectiveness, ensuring the effective execution of the climate strategy. level high-quality, sustainable development.
Climate-Related Risks and Opportunities
At the execution level, the "Ecological Environmental Protection and Carbon
Peak & Carbon Neutrality Leading Group" coordinates all climate-related work
and reports upward on a regular basis. The Company strictly complies with To systematically enhance its climate issue management capabilities, the Company has established a regular process for identifying, assessing,
ecological and environmental laws and regulations, formulating and issuing and managing climate-related risks and opportunities. Risks and opportunities are prioritized based on their probability, evolution trends, and
the Carbon Neutrality Procedure Document to provide clear institutional norms potential financial impacts, with quantitative analysis focused on those with significant financial implications. Quantitative assessments cover
Execution
and operational guidelines for climate governance and carbon neutrality work. three time horizons: short-term (0-2 years), medium-term (3-5 years), and long-term (6-10 years), with the resulting risk and opportunity list
level
reviewed and dynamically updated annually. In its analysis of transition risks and opportunities, the Company uses current policies as a baseline
while also setting an accelerated low-carbon transition scenario to assess the potential impacts of policy tightening, technological iteration, and
shifting market demand.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Risks Risk Description Time Horizon of Impact Management Measures Opportunity Description Time Horizon of Impact Management Measures
May impact supply chains and produc- Short-term Strengthen climate risk assessments, As demand for clean energy increases, Medium to Invest in technology R&D. Strengthen
tion facilities, resulting in asset losses promote sustainable development the market for lithium battery compa- long term R&D on high-performance, low-cost
and potential employee safety strategies, and enhance facility Growing demand nies in areas such as batteries may lithium battery technologies to meet
Extreme weather,
incidents. resilience. for clean energy expand. market demand.
changing precipita-
tion patterns
Adjustments to climate policies may Medium to Promote sustainable development, Increasing the use of clean energy can Medium to Develop photovoltaic power generation
affect production and operations; local long term strengthen policy monitoring and further reduce energy procurement long term projects, purchase green electricity, etc.
governments may implement stricter compliance management, and actively Energy use costs.
environmental regulations, imposing participate in industry dialogues.
stringent limits and emission quotas on
Policy and legal risks "three wastes" and greenhouse gas
emissions. Compliance with these new
rules and standards will increase
compliance costs.
Climate-related technological innova- Medium to Invest in R&D. Dedicate R&D resources to
tion may bring new development long term developing more environmentally
Technological opportunities for the Company. friendly, efficient products and technolo-
innovation drive gies.
Key raw materials for lithium batteries Medium to Diversify the supply chain. Ensure
may be affected by resource shortages long term stability of raw material supply, seek
or price volatility caused by climate alternative materials or partners;
change. collaborate with upstream and
downstream partners on carbon
Raw material supply
reduction actions, establish collaborative Proactively addressing climate change Medium to Disclose proactively. Regularly publish
mechanisms, and enhance value chain can enhance the Company's social long term the Company's ESG report, disclosing
resilience to climate change. image. information such as progress on
Brand image energy-saving and emission reduction
enhancement targets, to enhance the Company's green
image.
Energy demand during processing and Medium to Improve energy efficiency. Regularly
production may increase due to climate long term inspect production facilities for hazards,
The proliferation of electric vehicles will Medium to Expand production scale. Improve
change, leading to higher costs. upgrade equipment promptly; optimize
drive demand for high-performance long term production efficiency to ensure the
production processes to reduce energy
Energy consumption lithium batteries. supply of lithium battery cathode materi-
consumption and improve energy
Electric mobility als keeps pace with the growth of the
efficiency.
development electric vehicle market.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Climate Scenario Analysis
The Company uses scenario analysis to conduct carbon footprint calculations under different scenarios, employing SimaPro software for quanti- Energy management Supply chain optimization Product R&D
tative calculations and establishing its own climate risk analysis system covering a baseline scenario and multiple stress scenarios. The baseline
scenario serves as a control reference without external interference, while stress scenarios are set based on relevant policy requirements.
Increase the use of renewable energy Develop contingency plans with Develop environmentally friendly and
and build distributed photovoltaic suppliers, expand supply channels. efficient materials.
facilities.
For physical risk analysis
The Company selects two climate scenario models, RCP4.5 and RCP8.5, to simulate climate change trends Policy trends Procurement Others
under different temperature rise pathways, systematically assessing the potential impacts of acute and
chronic climate risk intensification on the Company's production, operations, and financial condition,
Changes in new energy and carbon Actively adjust procurement Monitor carbon emissions under the
further broadening the dimensions of climate risk analysis and deepening assessment.
emission policies will affect costs and strategies, prioritize the procurement influence of green electricity use and
demand, with significant impact from of recycled materials, and optimize recycling rates, and formulate relevant
the EU's new battery regulations. The production processes to improve strategies.
Company will continuously monitor capacity utilization.
related developments.
Considering that the clean energy structure directly affects the carbon emission levels in the electricity consumption process, the Company
calculated the potential impacts of climate change on its operations under three scenarios: 20%, 50%, and 100% green power usage.
Climate Impact, Risk and Opportunity Man-
agement
In terms of the recycling and utilization of secondary raw materials
Climate Risk Identification and Assessment
The Company has established and continuously optimized scenario analysis plans, comparing the carbon
emission reduction effects corresponding to different proportions of recycled material use. Calculations
show that when the recycled material usage ratio reaches 50%, it can effectively reduce the carbon footprint
of cathode materials and batteries by 20.56% and 10.37%, respectively.
The Company conducts specialized work on climate-related risks, integrating the identification and assessment of risks and opportunities into its
overall risk management system. It has established a complete mechanism covering environmental risk identification, risk assessment and
prioritization, and risk response.
Going forward, the Company will continuously improve its data collection and management system for climate-related risks, enhance data Climate risk response
Climate risk identification Climate risk assessment
availability and accuracy, and continuously optimize its climate risk stress testing models, improving model applicability and precision through mechanism
multi-dimensional validation. It will comprehensively assess various potential impacts of climate change on its business operations in a scientific
Through value chain analysis, Based on key indicators such as After the Board of Directors reviews
and rigorous manner, strengthening its climate risk management defenses.
climate database risk screening, and probability of occurrence, speed of the climate risk list, the Sustainable
industry research, the Company onset, and financial materiality, the Development "Dual Carbon"
identifies and analyzes links in the Company conducts in-depth assess- Working Group organizes relevant
value chain that are vulnerable to ments of identified climate risks and functional and operational depart-
climate risks, as well as potential opportunities, prioritizing those that ments to respond to climate risks,
Climate Adaptability Assessment opportunities, assessing their short-,
medium-, and long-term impacts on
may have a significant financial
impact on the business.
including developing comprehen-
sive climate transition risk control
the Company's operations. measures, an emergency manage-
ment system, and climate resilience
The Company's long-term climate adaptation is influenced by energy supply and low-carbon transition. Changes in downstream demand and
improvement projects.
fluctuations in raw material supply impact the business model while also having related effects on the climate.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Greenhouse Gas Emission Management
To accelerate the achievement of carbon peak and carbon neutrality goals, the Company has established an "Ecological Environmental Protection Manufacturing
and Carbon Peak & Carbon Neutrality Leading Group". The group studies and formulates the Carbon Peak Action Plan 2025 Annual Work Plan,
clarifies the responsibilities of each unit, establishes a carbon emission data monitoring system, regularly collects and records emission data, and Continuously improve energy efficiency, Procure renewable energy electricity through market
conducts accounting and reporting. Focusing on three main areas - process improvement, equipment upgrading, and management enhance- steadily reduce electricity consumption mechanisms, build photovoltaic power stations,
ment - the Company fully implements energy-saving, carbon-reduction, and efficiency-enhancing actions. In 2025, projects such as the second during manufacturing. continuously increase the proportion of green
phase of the rooftop photovoltaic power plant at Changyuan New Energy and the automatic venting regulation optimization of the air separation electricity used.
system at the oxygen generation station were implemented. Through the recovery and utilization of condensate and spray drying waste heat, the Deeply implement energy-saving and
Company improved energy and resource efficiency, reducing CO₂ emissions by 25,700 tons, effectively controlling and reducing energy consump- emission-reduction initiatives, promote Continuously optimize processes, improve overall raw
tion, and gradually mitigating total carbon emissions and emission intensity. The Company organized a carbon inventory for 2024, fully green and low-carbon transformation of material utilization rates.
understanding its carbon emission baseline and further standardizing data collection, accounting, and reporting procedures. production operations.
It formulated an annual safety and environmental protection work plan, defining annual work targets, and organized the signing of responsibility
agreements at each level. Based on the 2025-2027 term energy-saving and carbon-reduction targets set by China Minmetals, the Company broke
down and refined these targets into term goals and assessment standards for each subsidiary, and assessed their achievement at the end of the
year, ensuring each subsidiary's primary responsibility for energy saving and carbon reduction.
Transportation
Accelerate the construction of a low-carbon Leverage smart warehousing and new energy
transportation system, promote green equipment to create green and efficient warehousing
Product Lifecycle Carbon Footprint Management logistics upgrades. scenarios.
Promote the use of clean and environmental- Continuously optimize transportation routes, compre-
ly friendly containers and pallets, reduce the hensively improve logistics and warehousing
In the context of the global response to climate change, downstream customers are increasingly concerned about the carbon footprint of environmental impact of packaging. operation management levels.
products throughout their lifecycle. Countries such as France and Germany have successively incorporated product carbon footprint certification
into core market access requirements, continuously advancing the iteration and improvement of relevant standards and reinforcing the manda-
tory requirement for low-carbon development across the entire industrial chain. The Company deeply understands industry trends, actively
responds to global low-carbon policy directions and customer green demands, comprehensively manages the environmental impact of products
throughout their lifecycle, and systematically implements carbon reduction actions at each stage to continuously reduce product carbon
footprint.
Use
Design and material use
Continuously improve product lifespan, balancing product economic and environmental benefits, achieving
efficient resource utilization.
Design products to minimize environmental impact, considering the full lifecycle.
Effectively reduce the unit carbon footprint of products, supporting the realization of full lifecycle low-carbon
Optimize the proportion of recyclable components in assemblies, continuously improve product material
goals.
recovery rates.
End-of-life treatment
Raw material procurement
Strictly control the use of hazardous chemical substances, reduce the environmental impact of ternary material
Increase the proportion of recycled materials Increase the use of low-carbon technologies and low-car- products during disposal and at the end of their lifecycle, and promote green and safe development throughout
used in products. bon raw materials. the lifecycle.
Select suppliers with better carbon footprint Continuously promote low-carbon raw material procure-
performance. ment and substitution.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
The Company responds to policy requirements such as the Opinions on Accelerating the Establishment of a Product Carbon Footprint Management
System, standardizing its product carbon footprint accounting and management, and developing calculation methods. It has formulated product
carbon footprint management measures based on international standards such as ISO 14067:2018 Greenhouse Gases - Carbon Footprint of
The Company has also established a carbon footprint management system platform. This platform integrates a product life cycle
Products - Requirements and Guidelines for Quantification and PAS 2050:2011 Specification for the Assessment of the Life Cycle Greenhouse Gas
assessment (LCA) calculation engine compliant with the ISO 14067 standard and incorporates a database and models aligned with
Emissions of Goods and Services.
the EU's PEF methodology. It enables information-based traceability and process-based management control of "dual carbon"
related data, further enhancing the standardization and refinement of carbon footprint management.
Product Carbon Footprint Assessment Report Greenhouse Gas Inventory Report
Carbon Footprint Management System
The carbon footprint of the Company's ternary products has obtained third-party certification, with the accounting boundary strictly following the
"cradle-to-gate" principle, and the assessment scope covering the entire product lifecycle. For key products, the Company adopts a combination
of self-accounting and third-party certification for carbon footprint evaluation. In the accounting process, it comprehensively utilizes localized
databases tailored to China's actual conditions alongside internationally recognized generic databases, ensuring that carbon footprint accounting
results are scientific, objective, and comparable.
Product Carbon Footprint Certification
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Stakeholder Engagement in Decision-Making Climate Metrics and Targets
The Company deeply recognizes that achieving climate transition goals cannot be accomplished alone. It requires collaborative efforts with
upstream and downstream stakeholders to jointly build a low-carbon and resilient industrial ecosystem. To this end, the Company has formulat-
The company strictly adheres to the United Nations Framework Convention on Climate Change, actively responds to the "dual carbon" policy call,
ed a systematic stakeholder engagement strategy, orderly guiding and standardizing communication and collaboration with core stakeholders to
and has established a climate-related target system based on its business development strategy and industry low-carbon transition trends,
drive low-carbon transformation across the entire value chain.
balancing compliance with strategic orientation.
Stakeholder Type Key Targets Core Objectives Expected Contribution
Scope 1 and Scope 2 Emission Reduction
Key raw material suppliers, Collect emission data, encour- Improve the accuracy of Scope 3
high-emission suppliers, age suppliers to set emission emission calculations, transform- The Company officially announced its commitment to achieving net-zero emissions by 2050 and plans to complete the Science Based Targets
logistics service providers. reduction targets, enhance ing indirect emissions into initiative (SBTi) validation and approval by 2030. To ensure the timely achievement of emission reduction targets and the net-zero vision, the
carbon management capabili- measurable, manageable, and Company has formulated a series of specific, quantifiable action goals covering key areas such as energy management optimization, energy
Suppliers
ties, build a green supply actionable initiatives. efficiency improvement, and renewable electricity consumption.
chain.
Renewable Energy Proportion
Large enterprise customers, Understand low-carbon product Meet customer needs, attract new
customers with specific demands, showcase carbon clients, ensure market returns on 100%
sustainability requirements footprint advantages, collabo- low-carbon investments, and
Customers rate on developing low-carbon establish a virtuous cycle.
application scenarios.
>50%
Investors, ESG rating Clearly communicate climate Reduce investors' perception of
agencies. risks and opportunities, disclose risk, secure long-term strategic
transition progress, and support, and ensure funding for
Investors respond to climate information low-carbon technology and energy
disclosure requirements. efficiency improvements.
Central and local policy-mak- Participate in policy and Strive for a favorable policy Energy-saving and consump-
ing institutions and regulato- standard formulation, grasp environment, guide enterprises in tion-reduction technical upgrades
ry bodies, as well as interna- policy trends, and make developing forward-looking Use of renewable energy Energy-saving and consump-
Government and
tional organizations such as advance preparations. strategies, and enhance the impact Industrial process natural gas tail tion-reduction technical upgrades
international
the UN. of actions. gas recovery Use of renewable energy Further enhancement of energy
organizations
Lean management Industrial process natural gas efficiency
tail gas recovery Energy structure optimization
International organizations, Align climate action with interna- Promote the integration of climate Lean management and renewable energy utilization
industry associations. tional leading standards and actions with global practices and Clean heating
Carbon offsetting
expand corporate social play a leading role in the industry.
Industry influence.
associations
Local communities where Manage social impacts of Reduce operational risks,
factories are located, all transition, enhance employee improve internal and external 2023 2030 2040 2050
employees. engagement, create shared climate perception and participa-
value through local projects. tion capabilities, and enhance
Communities corporate resilience and social
Note:The Company's Scope 1 greenhouse gas emissions refer to the carbon dioxide emissions generated from the consumption of fossil fuels, including gasoline used by
and employees reputation.
company vehicles and natural gas used in production and logistics services. The company's Scope 2 greenhouse gas emissions refer to the greenhouse gas emissions
converted from net purchased electricity and steam, primarily including electricity and steam purchased for production, office operations, and logistics.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Green Energy in Action, Painting a Shared Future with Green
Enhancing Internal Scope 3 Accounting Capabilities Going forward, the Company will continue to focus on optimizing Scope 3 emission accounting, striving to incorporate more supplier-level data.
For purchased goods, it will systematically collect and apply product carbon footprint data provided by suppliers, continuously improving the
accuracy and comparability of Scope 3 emission calculations. At the same time, the Company will timely assess the impact of changes in account-
ing methodologies and emission factors. In the event of significant adjustments, it will promptly recalculate base year emissions to ensure the
The Company continuously enhances its Scope 3 emission accounting capabilities, striving to improve the accuracy, completeness, and compara- scientific validity, compliance, and continuity of emission accounting.
bility of calculation results. Strictly following the ISO 14064 standard, the Company monitors and reports Scope 3 emissions, covering categories
including purchased goods and services, fuel- and energy-related activities, waste generated in operations, employee commuting, business
travel, and upstream and downstream transportation and distribution. This covers categories 1, 3, 4, 5, 6, 7, and 9, achieving a coverage rate of
to match corresponding emission factors, replacing industry average emission factors with actual supplier data, and incorporating more localized
emission factors, the Company continuously improves the accuracy and scientific rigor of its Scope 3 emission accounting. Total GHG emissions
Category 1: Purchased goods and services
Scope 1 GHG emissions Scope 2 GHG emissions
Category 3: Fuel and energy-related activities
Category 4: Upstream transportation and
distribution
GHG emission reductions
Category 5: Waste generated in operations
Category 9: Downstream transportation
and distribution Scope 1 emission reductions Scope 2 emission reductions
Category 7: Employee commuting 5,513 Ton of CO2 equivalent 20,205 Ton of CO2 equivalent
Category 10: Processing of sold products
Category 2: Capital goods
Category 6: Business travel
Category 15: Investments
Category 12: End-of-life treatment of sold
products
Category 8: Upstream leased assets
Embracing Warmth to
Build a Win-Win Ecosystem
with Responsibility
Minmetals New Energy consistently upholds a development philosophy centered on people, customer focus,
innovation-driven growth, and collaborative win-win outcomes. We are deeply committed to talent cultivation and
rights protection, strengthening product quality and customer trust, advancing technological innovation and
intellectual property safeguards, and forging a resilient and efficient supply chain ecosystem. Staying true to our
central SOE mission, we actively fulfill social responsibilities by promoting rural revitalization and public welfare
initiatives, infusing development with warmth and responsibility with depth.
Response to the United Nations Sustainable Development Goals (SDGs)
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Empowering Careers and Uniting
for Growth
Total Number of Employees
Minmetals New Energy remains steadfast in compliant employment practices and humanistic care, grounded in equal opportunity, rights protec-
Ethnic Minority Employees Disabled Employees Veteran Employees
tion, talent development, and democratic governance. We comprehensively strengthen employee growth foundations by establishing a diverse
and inclusive hiring system, refining end-to-end rights protection mechanisms, creating multi-channel development platforms, and deepening 124 Person 5 Person 61 Person
democratic participation. This safeguards employees' legitimate rights, unlocks their potential, and achieves collaborative success with our
Percentage of Ethnic Percentage of Percentage of
workforce.
Minority Employees Disabled Employees Veteran Employees
Compliant Recruitment and Diverse Talent Full-time Employees Male
Acquisition By
Employment
By Gender
By Age
Type� Part-time Employees Female 1,386 Person
The Company strictly adheres to relevant laws and regulations, including the Labor Law of the People's Republic of China and the Labor Contract Law
of the People's Republic of China. It has established and implemented a series of rules and regulations, such as the ecruitment Management
Measures and the Labor Contract Management Measures to strengthen the foundation of compliant recruitment practices.
Doctoral Degree
The Company adheres to lawful and compliant hiring practices, ensuring the authenticity of recruitment information, the fairness of the recruit- Production Technical Sales
ment process, and the impartiality of hiring outcomes. The Company fosters an equitable employment environment, strictly prohibits employ- Personnel Personnel Personnel 12 Person
ment discrimination, and ensures that no job applicants are subjected to discrimination based on age, gender, ethnicity, or any other factors,
thereby effectively safeguarding workers' rights to equal employment. By 1,492 Person 637 Person 12 Person By Master's Degree
Professional Education
Category Financial Procurement Administrative Background 216 Person
The Company emphasizes diversity and inclusion. Aligned with its actual operational and production needs, it actively attracts top talent from
Personnel Personnel Personnel
various backgrounds and disciplines through multiple channels, including social recruitment, campus recruitment, and internal job competition. Bachelor and Below
With the development of the R&D With the development of the production With the development of the skilled
talent team as the core focus engineer team as a key priority talent team as the foundation
The Company is strengthening the The Company is enhancing the recruit- The Company is adopting a
recruitment of R&D personnel to
achieve continuous expansion in scale
ment of engineers specializing in
process, equipment, and quality,
multi-pronged approach to recruit
frontline technical workers, providing
Employment Management
and ongoing optimization of the aiming to establish a reasonable the manpower support necessary to
structure of the R&D workforce. talent reserve while meeting produc- ensure stable and orderly production
tion demands . and to achieve the core objectives of
"Ensuring Production and Securing The Company continuously standardizes its labor and employment management practices and effectively safeguards the legitimate rights and
Delivery" . interests of its workforce. It establishes and improves labor and employment rules and regulations in accordance with the law, ensuring that
workers enjoy their labor rights and fulfill their corresponding obligations; it implements a policy of signing labor contracts with all eligible
employees and arranges for the execution of written labor contracts promptly; it strictly fulfills its statutory disclosure obligations as an employer,
with pre-employment notification and training conducted in a standardized and procedural manner; it explicitly prohibits the recruitment of child
labor, a requirement rigorously enforced during resume screening, interview assessments, and onboarding procedures. In 2025, the Company
received zero complaints related to human rights issues and recorded zero incidents of child labor. The Company fully performs its duties as an
employer in strict accordance with the terms stipulated in labor contracts. Any amendments, terminations, or expirations of labor contracts are
carried out in full compliance with laws and regulations.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Employee Well-being and Occupational Case Minmetals New Energy Successfully Concluded the First "Minmetals New Energy Cup" Sports Festival
Health In November 2025, Minmetals New Energy organized the first "Minmetals New Energy Cup" Sports Festival, featuring events such as
air volleyball and basketball competitions, where teams competed for awards. During the games, participating employees demon-
strated tenacity, teamwork, and a competitive spirit, fully showcasing the indomitable and striving ethos of Minmetals New Energy.
Remuneration and Benefits
The Company has established normative documents such as the Company Compensation Management Measures and Company Employee
Performance Appraisal Management Measures to provide industry-competitive compensation and ensure timely and full payment. The Company
respects the value differences across positions, implements differentiated compensation systems for various job categories, and establishes a
scientific, reasonable, and effective compensation distribution model with a dynamic adjustment mechanism. The Company actively responds to
employee demands. Attendance results, performance evaluations, and disciplinary actions are confirmed by employees' signatures, and employ-
ees have the right to appeal if they have objections.
The Company consistently adheres to a people-oriented approach, delivering thoughtful and compassionate employee care services, and
fostering team cohesion through diverse activities.
Health Care
We organized initiatives such as summer cooling measures, comprehensive health checkups, scientif-
Case Minmetals New Energy Participated in China Minmetals Central China Regional Employee Sports Meet
ic weight-loss lectures, and "Xiangzhi Workshop" sessions. The Company also provided targeted
support for employees in need and facilitates medical mutual aid applications, effectively safeguard-
ing employees' physical and mental well-being.
In October 2025, the first China Minmetals Central China Regional
Employee Sports Meet was held in Wuhan, featuring 28 competition
events across five categories: individual athletics, team athletics,
individual fun games, team fun games, and on-site experiences. The
Minmetals New Energy team demonstrated tenacious willpower and
relentless fighting spirit, securing multiple honors in both individual
events and group fun competitions, while the Company received the
Sports & Recreation
Outstanding Organization Award.
We successfully hosted the first "Minmetals New Energy Cup" Sports Festival, featuring tug-of-war,
volleyball, badminton, and basketball competitions. The Company also actively participated in the
inaugural China Minmetals Central China Regional Employee Sports Games, winning the Outstanding
Organization Award and showcasing the team's vibrant spirit.
Cultural Life
We carefully curated signature events such as the Lantern Festival celebration, Women's Day movie
screenings, Tree Planting Day, and Dragon Boat Festival intangible cultural heritage activities to enrich
festive atmospheres. The Company also continued to organize Family Open Days and the second
"Dream Building with Children" summer research program, leveraging family bonds to empower
corporate development and cultivate a warmer, more cohesive corporate culture.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Case Minmetals New Energy Trade Union Hosted "Savoring Zongzi, Inheriting Intangible Cultural Heritage" Themed Event Case Minmetals New Energy Held Second "Children's Dreams" Summer Research Activity
To enrich employees' cultural life and promote China's outstanding tradition- In August 2025, Minmetals New Energy organized the second edition of its "Children's Dreams" summer research program. The event
al culture, in June 2025, the Minmetals New Energy Trade Union organized featured carefully designed sessions including themed lectures, fun knowledge competitions, and visits to the corporate culture
the "Savoring Zongzi, Inheriting Intangible Cultural Heritage" themed event. exhibition hall, helping children learn about the new energy industry as well as the Company's development history, products, and
Activities included traditional handicraft experiences such as five-colored silk processes. Additionally, parent-child interactive games were held on-site, allowing employees and their families to enjoy quality time
ropes making, DIY sachets, and bead stringing, alongside a Dragon Boat together. This not only strengthened family bonds but also exposed children to new energy knowledge, planting seeds of innovation
Festival cultural knowledge quiz and special holiday delicacies. in their minds.
Case
Case Minmetals New Energy Launched "Spring Breeze Warms March, Love Welcomes Goddesses' Day" Movie Screening Event
On March 7, 2025, to celebrate the 115th Interna-
tional Women's Day, enrich female employees'
spiritual and cultural lives, and enhance their
cohesion, the Minmetals New Energy Trade Union
organized a screening of the film "Nezha: The Devil's
Birth" for over 200 female employees. This reimag-
ined classic conveys an indomitable spirit of
perseverance and responsibility, offering a dual Health and Safety
feast of visual and intellectual inspiration.
The Company places high importance on employee health and
workplace safety, actively promoting health awareness, conducting
health training, and fostering a healthy environment to enhance
employees' occupational health awareness and literacy. The Company
has formulated the General Emergency Response Plan for Public
Emergencies, Emergency Management Measures for Public Emergencies,
and Management Measures for Workplace Safety Emergency Prepared-
ness, establishing a "1+1" emergency response framework for public
emergencies. Subsidiaries have respectively established Workplace
Accident Emergency Response Plans, covering comprehensive emergen-
cy plans, specialized emergency plans, and on-site response
procedures. The Company has obtained ISO 45001:2018 Occupational
Health and Safety Management System Certification. ISO 45001 Certification
The Company adheres to the bottom line of safety development, continuously advances the dynamic clearance of major accident hazards,
conducts special rectifications in key areas such as fire safety and subcontractor construction, and strengthens workplace safety safeguards. We
consistently improve the safety management system, enhance the dual prevention mechanism, establish assessment mechanisms for safety
production management, optimize reporting channels for safety violations, and elevate the effectiveness of safety and environmental protection
management. We rigorously organize thematic campaigns including "Workplace Safety Month" and "Fire Prevention Awareness Month", conduct
emergency drills for key risks such as hazardous chemical leaks and fire evacuations, and strengthen employees' safety and environmental
awareness. We strengthen occupational health management by conducting pre-employment, on-the-job, and post-employment health checkups,
establishing occupational health records, implementing "family doctor" programs in workplaces, and advancing the "Healthy Enterprise"
initiative.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Case Minmetals New Energy Launched the "Safety First Lesson for Work Resumption" Campaign Series
Talent Cultivation and Development
In February 2025, Minmetals New Energy organized a series of activities titled "Safety First Lesson for Work Resumption" to deploy
safety measures for production restart. The Company reinforced primary responsibilities, implemented relevant measures,
Empowerment
established special inspection teams, conducted comprehensive on-site hazard inspections, and supervised immediate
rectifications—providing solid safety assurance for high-quality development in 2025. Adhering to the philosophy of "prospering the enterprise through talent", the Company genuinely focuses on employee growth by formulating
and implementing the Education and Training Management Measures along with supporting policies. Based on job characteristics, the Company
provides employees with multiple career paths including management track, professional track, specialist track, and operational track. It
establishes a diversified career development system featuring vertical promotion, horizontal job rotation, and lateral movement to core
positions. The Company establishes scientific talent evaluation and selection mechanisms, actively promotes talent echelon construction,
implements reserve management cadre training programs, and builds extensive platforms for employee growth.
The Company has implemented a series of measures, including job rotation, mentorship programs, and skills competitions to fully unlock
employees' potential. These initiatives empower individual career development and inject vitality into the Company's long-term growth, building
a high-quality talent force to support the Company's high-quality development.
Democratic Management and Rights
Protection
The Company strictly adheres to the staff-representative congress system, convening two sessions annually to review major matters such as
salary adjustment plans, employees' rights to information, participation, and oversight are validly implemented. The Company upholds and
improves the employee director system, safeguarding staff representatives' rights to orderly participation in corporate governance. Democratic
Case Goldshine Energy Conducted Confined Space Emergency Drill management remains a key agenda item, with established channels for employee feedback to protect workers' rights. The Company maintains
transparency in factory affairs, promptly disclosing important matters through bulletin boards, OA systems, and other channels. Solicit proposals
from staff representatives, collect reasonable suggestions through the "Suggestions Box", actively listen to employees' suggestions and opinions
On June 25, 2025, Goldshine Energy carried out a comprehensive confined space emergency drill, aiming to thoroughly implement on Company development, and effectively address their concerns. Organize symposiums with key talent representatives to understand their
President Xi Jinping's important directives on workplace safety and enhance employees' safety awareness and emergency response perspectives and widely solicit opinions on Company reforms and development. By continuously deepening democratic management, we not
capabilities. The drill adopted a combat-oriented approach, simulating a scenario where a subcontractor collapsed after entering a only fully safeguard employee rights but also foster broad consensus for scientific decision and steady development.
synthesis tank without authorization. After activating the emergency response plan, all response teams coordinated seamlessly,
executing standardized rescue procedures including CPR, and successfully completed the mission. After the drill, hands-on CPR and
AED operation training were conducted to strengthen all-staff emergency skills. This drill deepened employees' awareness of confined Case Minmetals New Energy Held Symposium with Key R&D Talent Representatives
space operation risks, honed the emergency team's coordination capabilities, and implemented confined space operation safety
management requirements. It provided solid support for the Company to strengthen production safety defenses and ensure
high-quality development. In December 2025, Minmetals New Energy
organized a symposium with key R&D talent
representatives, where participants actively
contributed suggestions on R&D manage-
ment,achievement transformation, technical
breakthroughs, and talent force building. This
symposium established a platform for scientific
research exchange, extensively pooled innovative
wisdom, clarified the direction of research work,
and further ignited the enthusiasm of research
backbones. It provided strong support for the
Company to strengthen technological innovation
and achieve high-quality development.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Sincerely Service Customers Value
By the end of 2025, the Company had obtained GB/T19001-2016/ISO9001 quality management system certification, while two subsidiaries had
achieved both GB/T19001-2016/ISO9001 quality management system certification and IATF 16949 automotive quality management system
certification. Subsidiary laboratories had been accredited by CNAS (China National Accreditation Service for Conformity Assessment).
Co-Creation The Company regularly conducts internal and external product testing and evaluations to ensure quality and safety. Internal monitoring includes
product sampling and trend tracking, while external monitoring involves third-party product testing.
Minmetals New Energy has always regarded product and service quality as the foundation of development. By strengthening responsibility
implementation, deepening digital and intelligent empowerment, and fostering a quality culture, the Company continuously refines product and
service quality. With craftsmanship and commitment, it fulfills quality promises, creates long-term value for customers, and promotes the
prosperous development of the industrial ecosystem.
Product and Service Product Recall
Management System System
Product Quality Governance Production Control Procedure
Supplier Control Procedure
Customer Feedback Control
Procedure
Nonconforming Product Control
Procedure...
The Company strictly complies with the Product Quality Law of the People's Republic of China, Metrology Law of the People's Republic of China, Detailed
Rules for the Implementation of the Metrology Law of the People's Republic of China, Application Requirements for the Competence Recognition Criteria
of Testing and Calibration Laboratories, and Guidelines for the Recognition of Internal Testing Laboratories. It adheres to relevant control regulations After-Sales Customer
such as RoHS, EU REACH, TSCA, POPs, and PFOS, and has formulated the Quality Management Measures of Minmetals New Energy Materials (Hunan) Service System Complaint System
Co., Ltd. to comprehensively standardize quality management work. Meanwhile, the Company has established a quality and safety accountability
system covering all employees, including top management, management representatives, and personnel at all levels of management and Sales Management Measures Consumer Feedback Control
operations, clarifying the quality management framework and responsibilities. Procedure
Implementation Rules for Account
Manager Mechanism
Consumer Feedback Control Procedure
Top Management Management Representative
Formulate quality strategies, implement the quality Formulate quality policies and objectives, plan the
and safety accountability system, enhance organiza-
tion-wide quality awareness, fulfill quality responsi-
establishment, operation, and continuous improve-
ment of the ISO 9001/IATF 16949:2016 quality Product Quality Strategy
bilities, and establish a quality culture and values. management system, exercise the authority of
quality veto, and implement quality assessment
incentives.
The Company adheres to the quality management philosophy of "crafting products and services that exceed customer expectations with artisan
spirit". Upholding the service principle of "observing the market attentively and treating customers sincerely", we remain customer demand-driv-
en. Through professional dedication, standardized management, precise control, innovative management models, and continuous improvement
initiatives, we strive to deliver products and services that surpass customer expectations, achieving mutual growth.
Production/Inspection and Other Management
Quality Management Positions
and Operational Execution Positions
Assume primary management responsibilities, Assume direct responsibility, operate in accordance
strengthen process quality control and supervision, with quality management requirements and
organize quality analysis, correction, and improve- operational procedures, and fulfill the quality and
ment, and implement the quality and safety account- safety responsibility system.
ability system.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Product Quality Impact, Risk and Opportunity Product Quality In 2025
Management Metrics and Targets The Company had zero major liability
accidents related to product and service
safety and quality.
The Company has established a comprehensive supplier evaluation system, implementing a "dynamic assessment, survival of the fittest"
approach. Suppliers are categorized into four tiers—"A" "B" "C" and "D"—based on evaluation results. Tier D suppliers are deemed unqualified
and excluded, with re-entry prohibited for one year. Additionally, a "blacklist" mechanism further strengthens supplier oversight. Throughout the
year, raw material controls are implemented for 260 suppliers.
The Company and its two subsidiaries have established dedicated quality management departments. By building "systems + technology +
standards", we have developed process control specifications and standards covering the entire business workflow—from customer requirement
Quality Management Achievements and
Service Assurance
identification, product design and development, manufacturing, and product delivery to customer feedback.
All subsidiaries have established independent testing centers, building professional management and inspection teams, and setting up compre-
hensive quality inspection systems. These testing centers are all accredited by CNAS.
The Company has developed a quality management cockpit to enable real-time monitoring of product pass rates, raw material qualification rates,
and quality performance of customers and suppliers. All testing centers have fully completed the building and operation of LIMS systems,
achieving paperless sample submission and testing processes, automated data updates and integration with a single click, and efficient traceabili- The Company organizes diverse quality improvement activities such as quality awareness
ty of test results. Subsidiary Changyuan New Energy has piloted the building of a smart laboratory system, realizing real-time visual management training, quality knowledge competitions, and quality benchmarking evaluations, fostering
of core indicators such as energy consumption and equipment status in testing centers through multi-dimensional monitoring modules. a strong atmosphere where everyone focuses on, creates, and enjoys quality. Aligned with
the requirements of high-quality development, the Company launched a diverse range of
The Company has formed a professional service team composed of sales, technical support, and quality personnel to efficiently address quality "Quality Month" activities under the theme of "Digital Intelligence Driving, Strengthening
issues and technical challenges in customer service at all levels, while also conducting training for service personnel. Quality Culture Foundations and Supply Chains, Innovating Quality Ecosystems". These activities included
Development specialized training, targeted exchanges, knowledge competitions, skills contests, and
benchmark evaluations, fostering a strong quality culture where "everyone emphasizes
quality and quality is prioritized everywhere". The Company will consistently adhere to the
action guideline of "relentless pursuit of excellence in quality". By deepening quality
transformation and focusing on delivering products and services that exceed customer
expectations, it strives to provide higher-quality offerings for clients and society.
Provide services such as product introduction, consultation, and testing to help
information and purchase history to establish an information database.
In accordance with the Sales Management Measures, Customer Manager Mechanism
Provide logistics services and usage guidelines to ensure timely delivery and Implementation Rules, and Customer Feedback Control Procedures, the Company has
Mid-Sales established a customer manager team and a robust product recall mechanism. All depart-
correct product usage by customers. Product Recalls
ments are required to immediately halt sales and proactively recall products if they fail to
meet national, industry, or internal standards or pose safety hazards. Solutions must be
developed for problematic products.
Offer after-sales support and services such as returns and exchanges to ensure
identity.
The Company has implemented systematic complaint management policies and transpar-
ent complaint reporting channels. When a complaint is received, it must be escalated to the
Customer Complaint
After service completion, conduct follow-up visits with customers and collect responsible department within two hours. The responsible department conducts investiga-
Handling
Customer Follow-up feedback on their usage experience. By understanding customer satisfaction tions, verifications, and feedback, while the Quality Assurance Department oversees the
and suggestions, we continuously improve and enhance service quality. process.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Advancing Innovation for Re-
The Company follows the Customer Feedback Control Procedures, categorizing complaints into major, general, and minor based on their impact.
Personnel involved in complaint handling are required to provide appropriate response plans within specified timeframes. Among these, all
complaint incidents and service quality are incorporated into performance evaluations.
Customer complaint information is received through designated channels upon customer feedback, then forwarded to responsible departments
for root cause analysis, action planning, and prevention of similar complaints until resolution and customer satisfaction are achieved.
search for Long-Term Impact
Minmetals New Energy consistently prioritizes technological innovation as its core driver, establishing a sustainable R&D system and deepening
its expertise in lithium battery materials. Numerous scientific achievements reaches internationally advanced and leading levels, with substantial
Minmetals New Energy Launched Quality Improvement Campaign with the Theme "Digital
Case outcomes in standard-setting, continuously reinforcing its industry leadership.
Intelligence-Driven, Strengthening Foundations and Chains, Innovating Quality Ecosystems"
In September 2025, Minmetals New Energy aligned with the Outline for Building a Quality Nation to launch a series of quality enhance-
ment activities under the theme "Digital Intelligence-Driven, Strengthening Foundations and Chains, Innovating Quality Ecosystems",
Innovation-Driven Governance
driving quality management improvements and efficiency gains.
To further enhance R&D efficiency and stimulate employee innovation, the Company has formulated internal management regulations such as
the Detailed Rules for Intellectual Property Management, Detailed Rules for Scientific Achievement Management, Detailed Rules for Special Science and
Technology Fund Management, and Science and Technology Management Measures in accordance with laws and regulations including the Patent
Cooperation Treaty, the Patent Law of the People's Republic of China, the Implementing Regulations of the Patent Law of the People's Republic of
China, the Hunan Provincial Science and Technology Plan Project Management Measures, and the Hunan Provincial Science and Technology Progress
Regulations. These measures continuously standardize innovation and R&D management.
The Company has established and continuously improved a comprehensive, multi-level, and systematic sustainable R&D system. It has
implemented a "Research Center + Research Institute + Project Team" scientific framework, strengthens sector-based management of R&D
projects, clarifies primary responsibilities, and adopts a "de-administrative" approach by eliminating departmental structures in favor of
project-based sector management. This enhances organizational operation and R&D management efficiency.
Data Security and Privacy Protection
Minmetals New Energy established the Hunan Provincial R&D
The Company strictly complies with relevant laws and regulations, including the Data Security Lawof the People's Republic of China, the Personal
Center for Cathode Materials and Recycling Technologies of New
Information Protection Law of the People's Republicof China, and the Cybersecurity Law of the People's Republic of China, and carries out its In 2025
Energy Batteries, the Changsha Pilot Platform for Industrializa-
operationsaccordingly in accordance with its internal policies such as the Measures for the Administration ofNetwork and Information Security
tion of Lithium-ion Battery Cathode Material Technologies, and Through methods such as joint research and
and the Measures for the Administration of Information SystemData. The Company has established a Cybersecurity and Informatization Commit-
completed the registration of the "Changsha Low-Carbon Green development, and talent cultivation, a total of
tee chaired by theChairman of the Board, which is responsible for implementing regulatory requirements, reviewingdevelopment plans and
New Energy Materials Technology Innovation Center". Through
institutional standards, coordinating major incidents, and overseeingoverall work advancement.
project commissions, joint R&D, and talent cultivation with
universities such as the University of Science and Technology of
doctoral students
China, University of Science and Technology Beijing, and Central
South University, the Company has jointly trained 13 in-house
engineering master's and doctoral students and 5 on-the-job
doctoral candidates.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
As a core member of the SASAC's "Central Enterprises Solid-State Battery Industry Innovation Consortium", Minmetals New Energy
Innovation-Driven Impact, Risk and Opportu-
led a national solid-state battery project under the Ministry of Industry and Information Technology. Its spearheaded scientific
challenge, "High-Throughput Solid-State Battery Cathode", was selected as one of the SASAC's "Top Ten Scientific Problems". In 2025, nity Management
one employee was recognized as a leading scientific and technological innovation talent in Hunan Province's Furong Plan, and
another was named an Outstanding Young Scientific and Technological Talent in Changsha.
Changyuan New Energy, a subsidiary, successfully tackled the structural and interfacial stability challenges of medium-high nickel
Enhancing Incentive Mechanisms
single-crystal materials under high voltage in the Hunan Province's "Unveiling and Commanding" project, "Next-Generation Power
Ternary Cathode Materials", meeting the demands of next-generation power batteries for extended range, ultra-fast charging, and
The Company places high importance on building a team of scientific research talents and incentivizing technological innovation. It continuously
long cycle life, and passed the acceptance review. Goldshine Energy completed the Hunan Provincial Key R&D Program project, "Key
improves innovation incentive mechanisms, vigorously encourages technological breakthroughs and innovative practices, and establishes special
Technologies for High-Capacity Lithium-Rich Manganese Precursors", developing a lithium-rich manganese-based cathode material
rewards for product innovation, product value creation, process technology improvements, energy conservation and emission reduction,
with both high energy density and structural stability, which also passed the acceptance review. The Hunan Provincial Key R&D
patents, and academic achievements, fully unleashing the innovation vitality of all employees.
Program project "Development and Demonstration of Low-Cost, Short-Process Ternary Precursor Preparation Technology and
Equipment", participated in by subsidiary Changyuan New Energy, was successfully approved for establishment.
To strengthen innovation-driven development, the Company directs compensation resources toward R&D talents and key innovation projects. It
has introduced the "Product Value Creation Award" to highlight the incentive orientation for transforming innovative outcomes into market value.
Additionally, the Company has revised the research institute's reward mechanism to stimulate the innovation enthusiasm of young key talents
and bold experimenters, establishing a salary distribution mechanism and a long-term incentive and constraint mechanism rigidly linked to
performance evaluations.
The Company has established a sustainable innovation management system. In accordance with the Detailed Rules for the Implementation of
Science and Technology Project Management, it oversees the entire lifecycle of R&D projects—from application and approval to execution, comple-
tion, and archiving.
Establishment of Technical Standards
The Company has consistently increased R&D investment, focusing on technological breakthroughs and standard system development. It
Innovation-Driven Strategy strengthens its foundation with core technologies and leads industry trends through advanced standards, fostering standardized and orderly
industrial growth. By the end of 2025, the Company had implemented 92 standards. In 2025 alone, it participated in drafting and implementing
The Company is deeply committed to the R&D technology system for lithium battery cathode materials. Guided by the development philosophy
of "mass-producing one generation, reserving one generation, and pre-researching one generation", it strengthens its technological positioning By the end of 2025 In 2025
in the lithium battery materials sector. Targeted technology reserves and product development are conducted, while close attention is paid to Total Number of Standards New Standards Implemented with
advancements in new battery material systems. This ensures the Company seizes opportunities and maintains its industry-leading position in the Implemented by the Company Company Participation in Drafting
development of new energy materials.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Case National Nonferrous Metals Standards Work Conference Successfully Held at Minmetals New Energy Minmetals New Energy Led Development of Solid-State Battery Cathode Standard Winning "National Nonfer-
Case
Case rous Metals Standardization Technical Committee Outstanding Technical
On July 9-10, 2025, the National Nonferrous Metals Standards Work Conference was successfully held in Changsha. Hosted by the
In November 2025, the National Nonferrous Metals Standardization Technical Committee announced the results of its annual
National Nonferrous Metals Standardization Technical Committee and co-organized by Minmetals New Energy, the event aimed to
Outstanding Technical Standard Awards. The industry standard Solid-State Lithium-Ion Battery Cathode Materials, developed under the
standardize industry benchmarks and promote high-quality development in the nonferrous metals sector. The conference reviewed
leadership of subsidiary Changyuan New Energy, won a third-prize award.
Changyuan New Energy, successfully passed expert review, filling a technical gap in the industry.
Case Two Minmetals New Energy Technological Achievements Recognized as Internationally Leading and Advanced
In September 2025, two technological breakthroughs by Minmetals New Energy were assessed by experts as reaching internationally
leading and advanced levels respectively. These innovations strengthen original and pioneering technological supply, accelerate the
industrialization of new energy materials, and support high-level self-reliance in science and technology. One achievement employs
composite precursor preparation and multi-dimensional synergistic modification technology to overcome material performance
limitations while meeting cross-sector demands. The other develops proprietary preparation processes enabling comprehensive
synergistic control, with certain techniques achieving international leadership.
Innovation Achievements and Industrialization
The Company adheres to technology-driven high-quality development, focusing on core technology breakthroughs and industrial applications in
the new energy materials sector. It continuously advances key processes, enhances product performance, promotes efficient transformation of
innovation outcomes, and steadily improves core competitiveness and market value.
Project "Key Technologies and Industrialization of High-Performance Ultra-High Nickel Cathode
Materials and Their Precursors"
It meets the application needs in fields such as passenger vehicles, power tools, and low-altitude aircraft, gaining widespread
recognition from domestic and international customers.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Intellectual Property Protection,
Building Momentum for Progress
Project "Key Technologies and Industrialization of High-Capacity Sodium-Ion Battery Cathode
Materials"
The products exhibit excellent energy density, cycling performance, and safety, with overall technology at an internationally
advanced level.
As a "National Intellectual Property Advantage Enterprise", Minmetals New Energy attaches great importance to intellectual property protection.
In compliance with the Patent Law of the People's Republic of China, the Patent Cooperation Treaty, and the Implementing Regulations of the Patent Law
of the People's Republic of China, the Company has established internal management measures such as the Detailed Rules for Intellectual Property
Management, Detailed Rules for Scientific and Technological Achievement Management, and Science and Technology Management Measures to protect
independent innovation achievements, promoting technology transfer and commercial value realization, and providing intellectual property
support for the Company's sustainable development.
Innovation in Traditional Technology Path for Mid-Nickel Materials The Company continuously improves the quality of patent drafting and miningto develop high-quality product patents. It has also adopted
industry-standard patent search systems to strengthen internal patent search and analysis capabilities, as well as patent database development.
The product performance has been comprehensively upgraded, with 6-series high-voltage products successfully integrated into the The Company prioritizes the development of high-value product patents, accumulating numerous key technologies in the cathode materials
supply chains of multiple leading customers. sector and establishing a robust intellectual property system. In 2025, the Company and its subsidiaries, Changyuan New Energy and Goldshine
Energy, completed the audit of their intellectual property management systems.
Innovation-Driven Metrics and Targets By the end of 2025
The Company drives high-quality development through technological innovation, jointly creating first-class products and contributing to the
advancement of the national new energy materials industry. In 2025, guided by the Company's medium-to-long-term strategic plan, the formula-
tion of the Company's "15th Five-Year Plan" science and technology special plan was completed.
In 2025 58 new domestic patent applications were filed 53 invention patents 5 utility model patents
the Company's R&D investment amounted to RMB
revenue;
subsidiary Goldshine Energy passed the re-evaluation as a national-level
"Little Giant" specialized and sophisticated enterprise.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Collaborative Synergy and
Shared Value Across the Chain Access Management Evaluation Review
The supplier qualification A rigorous quality manage- Contract assessments Unannounced inspections
Minmetals New Energy strictly complies with national laws, regulations, and central SOE management requirements. Supported by digital
process is conducted on ment process is (process evaluation and and annual audits are
platforms, we have established a full-lifecycle supplier management system, adhering to the principles of selecting the best and removing the
China Minmetals Supply implemented, covering completion evaluation) performed irregularly for
inferior through dynamic control. We deeply integrate ESG concepts into the entire procurement process, striving to build a secure, stable,
Chain Platform, reviewing product introduction and and annual evaluations key raw material suppliers
efficient, controllable, and responsibility-sharing sustainable supply chain, thereby fostering collaborative win-win outcomes across the upstream
business licenses, credit other stages, with random are conducted on the to prevent unauthorized
and downstream industrial chain.
status, qualification unannounced inspections supply chain management changes and prohibit the
certificates, system to achieve comprehensive platform. Annual scores use of materials from
Supply Chain Governance
certifications, etc., while control over supplier are aggregated to high-risk regions, helping
evaluating metrics such as products, production, and determine supplier suppliers identify supply
scale and financial status. sourcing. ratings, restricting or chain risks.
Only qualified suppliers can prohibiting the use of
participate in bidding, unqualified or blacklisted
The Company bases its operations on laws and regulations such as the Bidding and Tendering Law of the People's Republic of China and the Guidance quotation, and other suppliers.
on Standardizing Procurement Management in Central Enterprises. We have formulated internal management systems including the Supply Chain business activities.
Management Regulations, Procurement Management Regulations, Supplier Management Measures, Procurement Method Management Measures, and
Procurement Supervision and Management Measures. These measures enhance the supplier management framework, clearly define management
responsibilities at all levels, and designate the Supply Chain Management Department as the unified oversight body for suppliers. Through
Supply Chain Impact, Risk and Opportunity
dedicated personnel management and meticulous control, we have established an efficient, collaborative, and professionally segmented
governance system.
The Company leverages responsible procurement as a key initiative, collaborating with suppliers to build a sustainable supply chain and fully
integrating ESG concepts into the entire procurement process. In 2025, the Company established a responsible procurement due diligence Management
management framework, formulated and implemented the Minmetals New Energy Sustainable Development Evaluation Measures, fully embedding
ESG principles such as human rights protection, environmental conservation, and business ethics into the supplier screening and evaluation
system. It explicitly prohibits child labor and forced labor, strictly controls pollution and carbon emissions, eliminates commercial corruption and Supplier Management
conflict minerals, and establishes anonymous reporting and anti-retaliation mechanisms to strengthen the integrity and compliance baseline of
the supply chain. By implementing the Minmetals New Energy Sustainable Development Evaluation Form, the Company conducts multi-dimensional
audits and assessments of suppliers in areas such as human rights, environment, safety, ethics, greenhouse gas management, and biodiversity. The Company adheres to procurement principles of openness, fairness, impartiality, good faith, and scientific optimization. It has established the
This enables a thorough understanding of suppliers' ESG performance and drives continuous improvement, while consistently reinforcing carbon Supplier Code of Conduct and Sustainable Procurement Policy for Supply Chains, issued the Integrity Proposal to Partners, and continuously strength-
management requirements across the supply chain to promote collaborative sustainability enhancement upstream and downstream. ened supplier qualification and performance evaluation. Sustainable development capabilities are incorporated as core criteria in supplier
selection.
When procuring materials, projects, and services, the Company and its subsidiaries primarily select suppliers from the qualified supplier pool
Supply Chain Strategy through the China Minmetals Supply Chain Management Platform. Leveraging the platform's digital capabilities, it achieves full lifecycle manage-
ment covering sourcing, qualification, utilization, evaluation, and exit, thereby continuously enhancing supply chain governance efficiency and
management transparency.The Company treats SMEs equally, maintains sound cooperative relations with them on an ongoing basis, strictly
abides by contractual terms, and has no record of overdue payments.
The Company adheres to the core principles of "unified management, dynamic assessment, and selective retention", supported by a comprehen-
sive supply chain risk management system. This enables full-cycle control from supplier onboarding to exit, ensuring stable supply chain
operations and mitigating procurement risks. For supplier quality management, a robust evaluation system is established, featuring dynamic
assessments and tiered classifications, complemented by a "blacklist" management mechanism to strictly control material supply quality at the
source. Adhering to the principles of openness, fairness, and impartiality, we employ a combination of open sourcing and
targeted sourcing. Under the premise of ensuring the economy, safety, and timeliness of procurement activities,
we effectively drive cost reduction and efficiency improvement by introducing full market competition. Through
comprehensive evaluation of suppliers' creditworthiness and performance capabilities, we strengthen the risk
prevention and control line of the supply chain, ensuring all procurement activities are implemented in a standard-
ized, efficient, and orderly manner.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
We establish a "smart evaluation + manual assistance" mechanism, which includes preliminary review (qualitative
assessment of basic conditions and disqualification items) and detailed review (quantitative scoring). Suppliers
Green Priority Integrity & Compliance
must meet requirements such as legal entity status, good reputation, and environmental and safety qualifications.
After platform OCR recognition and third-party data intelligent pre-review, the procurement department conducts
comprehensive evaluations on qualifications, production capacity, quality & environmental management systems, In sourcing and qualification processes, environmen- Require 100% of key suppliers to sign the Integrity
and green development. tal credentials, safety production records, and green Commitment Letter. Practices like bid-rigging and
technology capabilities are prioritized as core commercial bribery are added to a "blacklist",
evaluation criteria. Suppliers with government-certi- triggering minimum three-year bans with public
fied green/low-carbon products/services receive disclosure to strengthen anti-corruption monitoring.
incentives during vetting and assessment, with
A dual-track mechanism of "dynamic assessment + annual evaluation" is implemented: Daily issues are promptly
recorded in the platform's "Supplier Issue Log"; post-contract execution quantitative evaluations cover business
performance and comprehensive capabilities; compliance reviews are conducted for inactive suppliers. Annual
results serve as the core basis for tiered classification, strengthening process documentation and accountability Dynamic Empowerment Digital Enabling
tracing.
Conduct routine supervision and compliance Leverage end-to-end digital management to ensure
reviews via supply chain platforms, incorporating traceable responsible procurement and preventable
green performance and compliance records into risks. Regularly verify suppliers' social responsibility
dynamic evaluations. Provide improvement fulfillment to substantively advance green transfor-
continuous enhancement. chains.
Annual performance is categorized into four tiers for management. Suppliers rated A (≥90 points), B (80–89 points),
and C (65–79 points) are qualified, while D (<65 points) are unqualified. Grade A suppliers are prioritized for
strategic partnerships; Grade B for deepened collaboration; Grade C for development and improvement; Grade D
for suspended cooperation until compliance is verified. A red-yellow card warning system is implemented to
dynamically adjust collaboration strategies for suppliers with quality issues.
Supply Chain Risk Control
The Company prioritizes ensuring supply chain security, stability, compliance, and sustainability as its core objectives. It has established a
comprehensive lifecycle supply chain risk management system, implementing a dual-track mechanism of "daily dynamic monitoring + annual
Priority is given to procuring green and low-carbon products, with incentives provided to suppliers with environ- comprehensive assessment". This approach systematically identifies and evaluates risks from dual dimensions—likelihood of occurrence and
mental certifications. Daily supervision and ad-hoc on-site audits are conducted through the platform, focusing on impact severity—while deeply embedding ESG risks into management processes. Key focus areas include ethical integrity risks (commercial
ESG risks such as environmental compliance, labor rights, and business ethics. Suppliers involved in serious bribery, bid-rigging, etc.), HSE and compliance risks (environmental violations, workplace safety hazards, and labor rights), supply stability risks
violations such as bid-rigging and commercial bribery are added to a "blacklist". (production capacity fluctuations, delivery delays), quality and green risks (product defects, inadequate low-carbon capabilities). Leveraging
digital platforms, the Company enables risk early warning, rectification tracking, and closed-loop management to ensure overall supply chain risk
controllability and a solid foundation for sustainable development.
The Company places high importance on responsible procurement, deeply integrating ESG requirements throughout the entire procurement
lifecycle. In accordance with national regulations and industry standards, the Supplier Management Measures have been improved, clearly defining
suppliers' responsibilities in areas such as environmental protection, workplace safety, and business ethics.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Risk Response and Implementation Outcomes:
"Daily Dynamic Monitoring + Annual Comprehensive Assessment" Dual-Track Risk Evaluation Mechanism: Supply Chain Safety Management
Daily operations involve real-time tracking of supplier qualification validity, contract performance issues, and ESG performance via
the platform, with automated alerts triggered as needed. Annual assessments systematically evaluate risks based on the "Supplier
The Company has deepened its centralized procurement efforts. By comprehensively analyzing procurement data from the
Issue Log" and "Quantitative Evaluation Results Table", focusing on four key dimensions: ethical integrity, HSE compliance, supply
previous year, including statistical categorization of material codes, analysis of expenditure proportions, and evaluation of
stability, and green/low-carbon performance. Risk levels are quantified and incorporated into tiered management criteria.
supplier concentration, it has identified high-frequency, high-value, and highly standardized categories of materials and services.
Based on this, the Company has set annual centralized procurement management targets based on projected business growth
through 2025. It has also preliminarily established a Corporate Centralized Procurement Catalog covering bulk raw materials (e.g.,
lithium carbonate, nickel sulfate), general equipment spare parts, laboratory consumables, engineering services, and consulting
services, laying the groundwork for large-scale procurement.
Tiered For Grade A/B suppliers, strategic partnerships and green incentives are strengthened; Grade C suppliers The Company focuses on strengthening centralized procurement management and process monitoring. It clearly stipulates that
Targeted receive targeted corrective guidance with time-bound review and closure; Grade D or red-flagged suppliers projects included in the centralized procurement catalog must be uniformly organized and implemented by the corporate
Measures
face suspended cooperation until rectification is verified and approved. procurement department. Procurement plan management has been enhanced to improve transparency and compliance.
For categories within the Centralized Procurement Catalog, the Company actively promotes procurement models such as "frame-
work agreements" and "strategic partnerships". For standardized materials with high universality, annual framework tendering
is adopted to secure high-quality suppliers and favorable prices. For critical bulk raw materials, the Company actively explores
establishing long-term strategic partnerships with leading industry suppliers to ensure supply stability and cost advantages.
The Company has refined systems such as the Warehousing and Logistics Management Measures and External Warehousing Risk
Management Measures to strengthen the management of external logistics suppliers, ensuring product delivery and the safety of
The procurement process is made transparent through an information platform, with sustainable clauses
goods in transit.
Rigid solidified in contracts. 100 % of key suppliers have signed the Integrity Commitment . Bid-rigging,
Integrity collusion, commercial bribery, and similar violations result in immediate blacklisting and disqualification
Constraints
upon confirmation. High-risk suppliers are subject to rectification within a set timeframe or contract
termination, ensuring the entire supply chain aligns with the Company's sustainability commitments.
Supply Chain Disruption Response
During procurement execution, priority is given to clean energy, recycled materials, and eco-friendly packag-
Green The Company's operations center leads efforts to prevent supply chain disruptions. This includes expanding sourcing for key raw
Synergy ing, promoting green product design and low-carbon logistics collaboration. Environmental qualifications
Empower- material suppliers to mitigate single-supplier risks, implementing safety stock alerts for critical materials under the Safety Invento-
and low-carbon certifications are incorporated as core criteria for supplier access and evaluation, with
ment ry Management System, and conducting compliant emergency procurement as per the Procurement Management Regulations. It
incentives for priority cooperation extended to top-performing green suppliers.
also involves promptly activating alternative suppliers and coordinating raw material procurement, storage, transportation, and
sales to ensure stable production and operations.
For systemic risks identified in assessments (e.g., delayed supplier qualification updates), the platform's
intelligent pre-review rules are optimized, and third-party data verification frequency is increased. The
Continuous rectification closure rate is integrated into procurement department performance metrics to drive manage-
Improve-
ment
Mechanism
ment iteration. In 2025, the supply chain platform dynamically monitored over 700 suppliers, achieving
a 100 % rectification completion rate with no major supply disruptions or ESG violations, continuously
enhancing supply chain resilience and sustainable development capabilities.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Responsible Minerals
Public Welfare Warming Hearts,
The Company upholds responsible sourcing as a core principle, systematically advancing compliance management and social responsibility
practices in the mineral supply chain, and earnestly fulfilling its commitments to human rights, environmental protection, and community
Enriching Society
development. In accordance with the Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains, the OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and the EU Batteries and Waste Batteries Regulation, the Company
has formulated and issued the Responsible Mineral Supply Chain Management Policy, developed the Mineral Supply Chain Due Diligence Management Minmetals New Energy has always adhered to its aspiration for public welfare, strictly improved its donation management system in compliance
Manual and the Conflict-Affected and High-Risk Areas Identification Procedure, and established a grievance mechanism to build a comprehensive due with laws and regulations, and actively engaged in public welfare initiatives such as education, environmental protection, and poverty alleviation.
diligence management system. It has widely carried out volunteer services and charitable activities. Demonstrating responsibility through actions and spread warmth through
deeds, the Company keeps promoting the spirit of dedication, fulfilling its social responsibilities as a central enterprise with sincerity and action,
contributing strength to harmonious social development.
To effectively mitigate social and environmental risks, resolutely prevent severe human rights violations, and avoid potential contributions to
armed conflict, the Company has comprehensively reviewed and updated the supply chain maps for nickel, cobalt, manganese, and lithium
Public Welfare and
minerals. Leveraging existing systems, it has identified conflict-affected and high-risk areas within the supply chain. By utilizing third-party profes- The Company strictly follows the Law of the People's Republic of China on
sional assessments and qualitative supply chain data analysis, the Company has evaluated warning signals and developed targeted risk mitigation Donations for Public Welfare, and formulates the Minmetals New Energy
Volunteer Activities
strategies. Materials (Hunan) Co., Ltd. Donation Management Measures. It actively
supports the development of public welfare causes such as social
Implementation
The Company will continue to collaborate with upstream and downstream partners and professional institutions to jointly advocate for responsi- education and ecological environmental protection, conducting targeted
ble mineral practices. Through supplier capacity-building initiatives and sharing management expertise, the Company aims to enhance responsi- poverty alleviation, paired assistance, hardship relief, and various
bility awareness across the entire supply chain. The Company will continue to deepen the development of its responsible minerals management charitable and public welfare activities. The Company widely conducts
system, expand the scope of due diligence management, enhance supply chain transparency and resilience,implement the concept of sustain- volunteer services in areas such as environmental protection and blood
able development, and contribute to the responsible development of the global green energy industry through concrete actions. donation. In 2025, the Company organized a total of 7 volunteer
activities.
In 2025
the Company organized a total of
Supply Chain Metrics
The Company focuses on the core demands of supply chain security,
stability, and compliance control, improving quantitative assessment
indicators, strengthening risk anticipation and precise prevention across
and Targets the entire chain, and ensuring efficient collaboration and compliance
within the supply chain. In 2025, the Company had 728 suppliers, with
the number of supply chain risk incidents at 14.
Case Minmetals New Energy Launched a Series of Volunteer Service Activities to Learn from Lei Feng
In March 2025, to promote the spirit of Lei Feng in the new era,
Minmetals New Energy's Party, labor union, and youth league
In 2025 organizations at all levels carried out diverse volunteer service
activities under the theme "Inheriting the Spirit of Lei Feng,
The Company had Key suppliers have signed the Integrity Commitment
Gathering Volunteer Strength", demonstrating the responsibili-
ty and commitment of a central state-owned enterprise. The
activities focused on three key areas: joint construction and
collaboration, public welfare services, and green environmen-
tal protection. Employees and young volunteers participated in
initiatives such as school safety escort, inter-branch visits,
community services, environmental cleanup, and tree planting.
A total of 7 events were held, with 143 employee participations
and nearly 500 community members served. The initiative not
only polished the corporate social responsibility brand, but also
allowed employees to hone their character through practice.
Moving forward, the Company will continue to explore the
"Party-building + volunteering" and "professionalism + public
welfare" models, ensuring that the spirit of Lei Feng shines
brightly in the new era.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Embracing Warmth to Build a Win-Win Ecosystem with Responsibility
Advancing Rural Revitalization Case Minmetals New Energy Partners with China Salt Lake for Consumption Assistance Initiative
In September 2025, Minmetals New Energy collaborated with China Salt Lake to launch a consumption assistance campaign, support-
ing industrial development in paired assistance regions. Qilian County in Haibei Prefecture, Qinghai Province is Minmetals' designated
With unwavering commitment to our mission and boundless compassion, we contribute to assistance county. The Company organized a centralized exhibition and sales event at its high-tech base cafeteria, featuring local
rural revitalization. The Company remains steadfast in fulfilling its political and social responsi- green organic products such as yak jerky, black wolfberries, and gray beans, which attracted active purchases from employees.
bilities as a state-owned enterprise, dedicating itself to rural revitalization with a strong sense In 2025
of duty and mission. We have established a comprehensive support responsibility system led
Total Investment in Consumption
by top management, involving multi-department collaboration and full-process supervision. In Assistance Funds
strict alignment with the Central Party Committee's directives, we employ diverse measures
such as field research, consumption-based assistance, and employment empowerment to
precisely address support needs. With dedication and action, we aid the development of RMB 38,000
supported regions and increase residents' income, fulfilling our social responsibilities and
injecting state-owned enterprise strength into advancing rural revitalization and painting a Employment Arrangement for
picture of common prosperity. People in the Assisted Counties
To thoroughly implement the guiding principles of the 20th National Congress of the CPC and
its subsequent plenary sessions, as well as the Central Rural Work Conference, and to fulfill
the directives of the Central Committee and the State Council regarding normalized and
targeted assistance, along with the "Dual Linkage" assistance tasks assigned by the leading
Party members group of the Group Corporation, the Company has consistently intensified its
efforts in consumption-driven assistance. The Company actively assists in expanding sales
channels for specialty agricultural products from seven designated assisted counties,
including Huayuan County, thereby effectively driving increased sales and income for local
residents. Concurrently, the Company has deepened its engagement and coordination,
proactively offering suitable job positions to residents of the assisted counties to help alleviate
employment challenges. In 2025, the Company invested a total of RMB 338,100 in consump-
tion assistance and facilitated the employment of two individuals from the assisted counties.
Case Minmetals New Energy Conducts Rural Revitalization Research in Huayuan County
On October 21-22, 2025, Minmetals New Energy conducted a special research trip on rural revitalization in Huayuan County, Hunan
Province. The team visited households in Shibadong Village and Zhangpima Village of Longtan Town, held discussions with local
cadres and residents, and gained insights into paired assistance programs, living environment improvement, and specialty industry
cultivation. They also inspected the Shibadong Garment Factory and Jiwei Rice Processing Base, providing guidance on production
operations, cost reduction, efficiency improvement, and brand enhancement.
Upholding Integrity and Driving
Innovation, and Straightening
the Foundation for Shared Pros-
perity Through Governance
Minmetals New Energy consistently upholds the Party's comprehensive leadership, prioritizing political develop-
ment as the guiding principle, ideological development as the soul, organizational development as the foundation,
institutional development as the basis, conduct development as the driving force, and disciplinary development as
the safeguard. The Company continuously improves its modern corporate governance system, strengthens compli-
ance, risk control, and integrity building, adheres to business ethics, and maintains open communication channels
with stakeholders, driving high-quality development through high-quality Party building.
Response to the United Nations Sustainable Development Goals (SDGs)
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Party Building as the Guiding Political Development Steering the Course
Force: Uniting and Empowering The Company's Party organization anchors itself to the core requirements of political development, reinforcing foundational growth through
three-dimensional efforts: theoretical fortification, Party spirit tempering, and leadership team building.
Theoretical Empowerment
The Party Committee's Effective Directional Oversight
The Company solidly advances the study and discussion sessions of the Party Committee's Theoretical Study Center Group,
guiding and motivating Party organizations, and Party members and officials at all levels to profoundly grasp the decisive
significance of the "Two Establishments", effectively strengthen the "Four Consciousnesses", consolidate the "Four Confidenc-
es", and uphold the "Two Safeguards". We strictly implemented the "First Agenda" system, promptly following up and studying
Fully establish the Party Committee's pre-research and discussion list for major business management matters 30 items of General Secretary Xi Jinping's series of important instructions, remarks and speeches, ensuring that the decisions
and implement a dynamic management mechanism. Regularly evaluate and optimize the list based on policy and arrangements of the CPC Central Committee and the work requirements of the Party Group of China Minmetals are fully
requirements, Company realities, and development stages to ensure its accuracy and timeliness. Through implemented and take root in the Company. In 2025, a total of 11 centralized study sessions were organized by the Party
list-based management, further clarify the specific scope and execution pathways of the Party Committee's Committee's Theoretical Study Center Group, including one thematic reading session, one research findings exchange meeting,
decision-making, review, and oversight authority in major decision-making matters.
and 20 "First Agenda" learning sessions.
Party Spirit Cultivation
By strengthening theoretical empowerment, enforcing rigorous political life, and enriching practical platforms, we have continu-
ously enhanced the Party spirit of members and officials. The Party Committee Center Group spearheaded thematic study
sessions on Party regulations such as the Party Constitution, Guidelines for Political Life Within the Party Under the New Circumstanc-
es, and Regulations on Disciplinary Actions of the Communist Party of China, solidifying ideological foundations through in-depth
study and reflection. High-quality democratic life meetings were convened, focusing on four key areas to identify prominent
Conduct systematic revisions and optimizations to the "Company Decision-Making Matters and Process List", issues. Through item-by-item review, criticism, and self-criticism—along with case analysis and lessons learned—a total of nine
clarifying the classification criteria and authority scope for various decision-making matters. Ensure the list and issues were identified, and 11 targeted rectification measures were formulated. This created a closed-loop system of "inspec-
processes are targeted, actionable, and aligned with business development. Actively promote subsidiaries to tion, rectification, and governance", continuously improving the leadership team's political judgment, comprehension, and
continuously improve the "three lists and one process"-centered management and governance system. This execution capabilities. Aligned with major milestones such as the 104th anniversary of the Party's founding and the 76th Nation-
system meticulously delineates and standardizes the Party Committee's authority boundaries, performance al Day, we organized patriotic education activities including the "Seven Ones" thematic campaign and flag-raising ceremonies.
procedures, and working methods at each stage of corporate governance, ensuring coordinated operation and
effective checks-and-balances of governance mechanisms.
Strengthening Party Building
In light of the Company's shareholding structure and mixed-ownership characteristics, the Company firmly adheres to the
fundamental principle of "Two Adherences". It has established and refined a modern corporate governance system character-
ized by "Party Committee oversight and direction-setting, board of directors strategic decision-making, and Executive Manage-
ment operational management". Within this framework, the board of directors is responsible for "setting strategy, making
decisions, and managing risks"; the Party Committee is tasked with "charting the course, overseeing the overall situation, and
strengthening management." The Company has advanced these efforts in an integrated manner and achieved the "Five 100%
By revising and refining the Company's articles of association, the duties, authorities, and deliberation rules of
governance entities such as the Party Committee, Board of Directors, and executive management are clearly
Targets" under unified standards:
defined. This institutionalizes the embodiment of the Party Committee in major decision-making processes, entities; 100% of Party organization secretaries concurrently serving as Chairman (or Executive Director); 100% establish-
fundamentally strengthening the Party's leadership within the governance framework. ment of deliberation and decision-making protocols for Party organizations; 100% implementation of the procedure
requiring preliminary deliberation by Party organizations before major decisions are submitted to the board or management;
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Ideological Development Uniting Hearts and Targeted Efforts to Strengthen Grassroots Ideological Guidance
Forging Spirit We guided grassroots Party organizations to integrate theoretical study,current situation and tasks education,
ideological education, Party discipline study, and Party history education with their operational realities, deeply
aligning these initiatives with core tasks like production, project breakthrough, and reform for synergistic advance-
The Company adheres to ideological development as a key component of Party building, focusing on the core of Party member education and ment. Conducting employee sentiment surveys via questionnaires, forums, and one-on-one exchanges, we
ideological guidance. Multiple measures are taken to solidify the ideological foundation and foster consensus for development. comprehensively assessed staff perspectives and compiled the "2025 Employee Sentiment Research Report". The
Party Committee particularly studied the findings and deployed the next ideological work to ensure alignment
between employee mindset and corporate development.
Strategic Planning for a Systematic Learning Framework
The Company places high importance on Party member education and training. Aligning with the Company's
development realities and the characteristics of its Party members, it meticulously formulated and issued the
"2025 Annual Party Member Education and Training Plan". This plan outlines learning objectives, content, Deep Study and Implementation of the Spirit of the Fourth Plenary
Session of the 20th CPC Central Committee
methods, and safeguards, establishing a learning mechanism that ensures "annual planning, monthly arrange-
ments, and phased priorities". Each month, key work plans are issued to systematically and regularly arrange the
study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Through- The Party Committee's theoretical study center group held concentrated discussions on the plenary session's
spirit, while the Party Committee Conference formulated an implementation plan. Leveraging platforms like
out the year, 18 thematic learning sessions were organized, covering Xi Jinping's Economic Thought, Xi Jinping's
"SASAC e-Learning" and "Minmetals e-Learning," we organized self-study for all staff. We expanded online resourc-
Ecological Civilization Thought, Xi Jinping's Important Thoughts on Party Building, and key discussions on
state-owned enterprise reform and Party construction. This achieved comprehensive and thorough learning of the es by publishing 6 installments of plenary session materials on our WeChat platform and installing 6 promotion-
Party's innovative theories. al boards at headquarters and subsidiaries, enhancing the timeliness, accessibility, and reach of theoretical
education. We prioritize publicity and education as the key to implementing the spirit of the plenary session,
enhancing overall planning, innovating methods, expanding communication channels, and improving the quality
of outreach. Members of the Company's leadership conducted eight lecture sessions within their respective Party
Diverse Platforms to Enhance Learning Effectiveness
branches and liaison branches. Party organization secretaries of subsidiaries and research institutes tailored
lecture activities to their specific contexts, ensuring the plenary session's spirit permeates every level of the
Guided by the principle of "stratified and targeted education", the Company has established a full-cycle learning organization, takes root at the grassroots, and is embraced by all employees. This has fostered an atmosphere
model featuring "annual off-site training, biannual coaching sessions, quarterly discussion exchanges, and month- where everyone pays attention, understands, and practices the spirit.
ly theoretical instruction". This approach drives theoretical learning from foundational to advanced levels,
ensuring depth and practicality. Focusing on enhancing grassroots Party building capabilities, we specially
organize thematic training sessions for Party branch secretaries and Party affairs personnel. The program features
a systematic curriculum spanning 40 class hours, covering over 70 Party affairs cadres at all levels to precise-
ly elevate their professional competencies. We expand online learning channels by launching 24 installments of
study columns such as "Central Eight-Point Regulation Spirit Education" and "Studying and Implementing the Spirit
of the Fourth Plenary Session of the 20th CPC Central Committee" on our WeChat public account. Simultaneously,
we established the online "Lithium Vision Academy" platform, offering 15 educational courses with over
leaders, experts, role models, and frontline employees, delivering themed lectures like "Minmetals New Energy
Youth Forum" and "Perspectives on Company Development". Company leaders led 16 Party lectures, creating
a multi-dimensional lecture framework where "experts teach theory, leaders deliver Party lectures, functional
departments explain policies, role models share deeds, and employees discuss changes"—making theoretical
learning more relatable and impactful.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Case
Minmetals New Energy Conducted Lecture on the Spirit of the Fourth Plenary Session of the 20th CPC
Central Committee Organizational Development, Strengthening
On December 12, 2025, Minmetals New Energy held a lecture session to study and implement the spirit of the Fourth Plenary Session Foundations
of the 20th CPC Central Committee. The event aimed to embed the plenary session's spirit within the Company, unify the thinking of
all employees, and consolidate efforts to drive high-quality development. The Company has established Party affairs bodies in accordance with relevant regulations,
including the Party Committee Office, Party Organization Department, Party and Mass Work
In 2025
Department, Party Publicity Department, and Discipline Inspection Department. Full-time Party
affairs staff have been adequately recruited and trained, with clearly defined responsibilities
The Company currently has
and improved working mechanisms. At the same time, the Company has established a funding
guarantee mechanism for Party building, incorporating sufficient Party building funds (includ-
ing Party dues and Party organization operating funds) into the Company's annual budget as a Party members
dedicated item under standardized management. This provides a solid organizational and
financial foundation for Party organizations to carry out their work in a standardized manner
and effectively fulfill their roles. The Company currently has 305 Party members. A Party Committee
standardized Party organization structure has been established, comprising a three-tier
framework of “Party Committee – General Party Branch – Party Branch”, achieving full coverage
“horizontally across all departments and business units, and vertically throughout all levels of
the organization.” This ensures that Party organizations and their activities are effectively
embedded in the Company's governance structure. The Company continuously strengthens its
General Party Branch
cadre development. Comprehensive assessments have been conducted for 36 cadres
managed by the Party Committee, including individual feedback sessions and integrity remind-
ers, creating a precise “political profile” for each cadre. Political theory training has been
completed for the leadership team and 77 division-level cadres. The Company regularly
conducts specialized training on political capacity building and integrity warning education, Party Branch
encouraging leadership team members to take the lead in fulfilling their responsibilities and
commanding from the front. A strong leadership team drives the development of the broader
workforce, continuously transforming organizational strengths into drivers of corporate
growth, thereby providing a strong political guarantee for high-quality development.
Discipline Enhancement Strict Party Governance
The Company has resolutely implemented the 2026 Work Priorities for Party Building of
China Minmetals Corporation Party Committee and all tasks for comprehensively enforcing
Case Minmetals New Energy Held Education and Warning Conference on Implementing the Central Eight-Point Decision strict Party governance. Throughout the year, the Company's Party Committee conducted In 2025
Annual Special Study and Deployment
On June 16, 2025, Minmetals New Energy convened an
governance, held 2 special consultations, and organized a work conference on Party of Full and Rigorous Governance over
the Party Members
education and warning conference to deepen the
conduct, integrity, and anti-corruption to specifically deploy discipline building, fully fulfilling
implementation of the Central Eight-Point Decision. The
meeting conveyed key directives and warning education
spirit, screened the third episode of the warning
the political responsibility of Party governance. The Company has vigorously strengthened
its integrity culture in the new era, researching and establishing a mechanism for the
regularized and long-term implementation of Party discipline education. The study of Party
documentary Always Blow the Charge, disclosed typical
discipline rules, including the Regulations on Disciplinary Action, has been incorporated as a
cases of violations, and deployed activities for the
key element of basic education, allowing concentrated education and basic education to Thematic Consultations
Warning Education Month and special rectification work.
complement and reinforce each other, continuously strengthening the ideological defense
against corruption. The Company has focused on systematic rectification in areas where
power is concentrated, resources are abundant, and capital is dense, rigorously investigat� 2 times
ing and handling violations to create a strong deterrent. The risk checklist for positions in
actively promoting anti-corruption projects and activities in which Party members make and
fulfill commitments, comprehensively fostering a clean and upright political environment.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Strengthening the Foundation through Strengthening Enterprises by Ex-
Institutional Development cellence in Governance, Making
The Company has thoroughly implemented relevant intra-Party regulations, including the Constitution of the Communist Party of China, the
Steadfast and safe Progress
Guidelines on Inner-Party Political Life in the New Situation, the Regulations on the Work of CPC Branches (Trial), and the Regulations on the Education
and Management of Party Members. The Company has newly established or revised a series of Party building institutional documents, including
Minmetals New Energy adheres to standardized operations and scientific decision-making. Building on a sound governance structure, clear
the Working Rules of the Party Committee of Minmetals New Energy Materials (Hunan) Co., Ltd., the Assessment and Evaluation Measures for the Party
division of responsibilities, and efficient operational mechanisms, the Company continuously improves its modern enterprise system. It deeply
Building Responsibility System of Minmetals New Energy Materials (Hunan) Co., Ltd., the Evaluation Measures for the Standardized Development of Party
integrates compliance governance and scientific decision-making with high-quality development to effectively safeguard the interests of the
Branches of Minmetals New Energy Materials (Hunan) Co., Ltd., and the Implementation Measures for the Ideological and Political Work Responsibility
Company and all shareholders, providing solid governance assurance for sustainable development.
System of Minmetals New Energy Materials (Hunan) Co., Ltd.
Conduct Development Corporate Governance Structure
The Company consistently upholds the integrated approach of strengthening Party conduct, Party discipline, and compliance with intra-Party The Company strictly complies with relevant laws and regulations such as the Company Law, Securities Law, Corporate Governance Guidelines for
regulations, while simultaneously promoting integrity, discipline enforcement, and anti-corruption efforts. The Company ensures that efforts to Listed Companies, and Listing Rules for the STAR Market. It has established and continuously improved internal regulations including the Articles of
improve conduct are consistent and enduring. It has launched special rectification initiatives targeting formalistic practices such as excessive and Association, Rules of Procedure for Shareholders' Meetings, Rules of Procedure for Board Meetings, and Measures for the Work of Independent
frequent inspections, checks, and assessments, an overemphasis on documentary evidence, and the imposition of excessive requirements at Directors. The Company has built a governance structure centered on shareholders' meetings and the board of directors, featuring clear respon-
lower levels. These efforts effectively reduce burdens at the grassroots level. The Company promptly addresses bureaucratic issues, including sibilities and effective checks and balances. It defines the duty boundaries and operational mechanisms of each governance body to ensure
failure to take responsibility or take action, and delayed reporting or concealment of major incidents. It continues to rigorously combat hedonism efficient corporate governance. In 2025, in accordance with the new Company Law and relevant regulatory requirements, the Company steadily
and extravagance, deepening rectification of frequently occurring problems such as unauthorized feasting and the improper acceptance or and compliantly abolished the board of supervisors, with the board's audit committee assuming the statutory duties previously held by the board
offering of gifts and cash vouchers. Special inspections on business entertainment expenses have been conducted, and strict standards have of supervisors.
been applied to the declaration and surrender of gifts and cash vouchers by Party officials. Throughout the year, no formalism, bureaucracy,
hedonism, and extravagance related to unauthorized feasting or improper acceptance of gifts and cash vouchers occurred, and a new and
Standardized Operation of the Board of
healthy atmosphere continues to prevail.
Directors
The board of directors serves as the Company's decision-making body for business operations. Major management matters are first reviewed
and discussed by the Party Committee before being decided by the board of directors according to its authority and prescribed procedures. The
Board fulfills its decision-making responsibilities in a standardized manner. All directors are well-versed in relevant laws and regulations,
understand their rights, obligations, and responsibilities as directors. The convening, conduct, and deliberation procedures of Board and commit-
tee meetings comply with Company regulations, and voting procedures are lawful and compliant.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
To enhance the comprehensiveness of decision-making, supervision,
and operational management, the Company's Board of Directors has
In 2025
established four specialized committees: the Strategy Committee,
Board Appointment Process Board Diversity Development Audit Committee, Compensation and Evaluation Committee, and the Company's specialized
Nomination Committee. committees convened
The Company strictly adheres to the Articles of Association and
relevant regulations to standardize the entire process, including
Aligned with strategic development needs, the Company
optimizes board composition by considering diversity across
shareholder nominations, candidate qualification review, professional backgrounds, industry experience, age, and gender
specialized board committee evaluation, election of employee structure. Directors possess expertise in business management,
directors by the staff congress, board proposals, shareholder investment management, financial auditing, industry research,
Strategy Committee
meeting elections, industrial and commercial registration, and technological innovation, and other fields, providing comprehen-
public disclosure, thereby completing the election of the sive professional support for strategic planning, risk control, and
third-term board of directors. operational decision-making to meet business development and
governance requirements. Responsible for researching and providing recommendations on the Company's long-term development
strategies and major investment decisions, as well as advancing legal governance. In 2025, the Strategy Commit-
tee operated effectively, fulfilling its duties by reviewing the Company's annual ESG report, proposing the dissolu-
tion of the Supervisory Board, amending the Articles of Association, and conducting research on corporate
development strategies to provide recommendations.
By the end of 2025, the Board comprises nine directors, including one employee director elected by the staff congress and three independent
directors, with the number and composition complying with legal and regulatory standards.
Audit Committee
Number of Board Members Number of Board Members Number of Board Members
with Doctoral Degree with Master's Degree with Bachelor's Degree Responsible for reviewing the Company's financial information and disclosures, overseeing and evaluating
internal and external audits, and internal controls. The Audit Committee consists of three members, all of whom
are directors not serving as senior executives. Independent directors constitute the majority, with an accounting
professional among them serving as the convener. In 2025, the Company's Audit Committee operated effectively,
assuming the relevant functions of the former Supervisory Committee. It diligently fulfilled its responsibilities by
overseeing and reviewing the Company's financial information, financial budgets and final accounts, appoint-
ment of financial officers, reappointment of accounting firms, fundraising projects and fund utilization manage-
ment, related-party transactions, and shareholder dividend return plans. The committee ensured the effective
implementation of the internal audit system and facilitated efficient communication between internal and
external audits.
Number of Board Number of Male Number of Female Board
Members Board Members Members
Remuneration and Appraisal Committee
Responsible for establishing appraisal standards and conducting evaluations for directors and senior manage-
ment. It formulates and reviews remuneration policies and plans, including decision-making mechanisms,
Number of Directors Aged Number of Directors Aged 40 Number of Directors
processes, payment arrangements, and clawback provisions for directors and senior executives. In 2025, the
Company's Remuneration and Appraisal Committee actively performed its duties by reviewing and providing
recommendations on the remuneration policies, appraisal plans, and evaluation results for directors, supervi-
Person Person Person sors, and senior management.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Nomination Committee
Compliance as the Shield and
Tasked with formulating selection criteria and procedures for directors and senior management, as well as
Upholding Integrity
screening and reviewing candidates and their qualifications. In 2025, the Company's Nomination Committee
operated effectively, fulfilling its responsibilities by reviewing matters such as the election of directors, appoint- Minmetals New Energy always adheres to the principle of compliant operations, embedding compliance requirements throughout all business
ment of senior management, and appointment of securities affairs representatives. It ensured that the appoint- processes. Through standardized governance, it builds a robust barrier for steady development, demonstrating the responsibility and commit-
ments of directors and senior executives complied with regulatory requirements. ment of a central SOE, thereby safeguarding the Company's high-quality and sustainable growth.
Management Compensation and Training Internal Control System Development
The Board's Remuneration and Appraisal Committee comprehensively evaluates factors such as Company objectives, peer compensation levels, In compliance with regulations such as the Basic Standards for Enterprise Internal Control and Supporting Guidelines, the Company has formulated
and performance of duties to formulate compensation plans and appraisal matters for directors and senior management, providing recommen- and implemented relevant systems including the Internal Control Evaluation Measures, Internal Control Audit Management Measures, Internal Audit
dations to the Board. Management Regulations, Internal Audit Project Management, Measures for Accountability in Violation of Operational and Investment Responsibilities,
and Management Measures for Rectification of Audit Issues. These systems clarify authority boundaries and checks-and-balances mechanisms to
safeguard against risk thresholds.
The compensation structure for directors and senior management holding operational roles includes base salary and
bonuses. Internal Audit Work
Remuneration: The remuneration consists of position coefficient pay, position performance pay, and allowances.
Among them, position coefficient pay and allowances are determined based on factors such as job title, seniority,
education, and skills, representing relatively fixed work compensation; position performance pay is determined Focus on Key Areas, Precise Risk Prevention
based on work performance, representing variable wage compensation.
Special audits were conducted on executive compensation, self-reliance and controllability, loss-making
enterprise governance, and three-category assets, effectively addressing management loopholes and
Bonuses: Bonuses are awarded based on annual performance, performance evaluations, and the Company's
systematically enhancing the Company's management standards.
operational status.
The remuneration for independent directors follows an independent director allowance system, with the
allowance standards determined comprehensively based on the Company's actual situation, industry develop-
ment, and benchmarking against peer listed companies. Deepen Engineering Audits, Strictly Control Project Costs
Cost reviews were performed for major projects such as the second phase of Changyuan New Energy's
Non-independent directors who do not hold positions within the Company receive director work allowances in of 2%. The settlement review reduction rate for maintenance and technical renovation projects reached
accordance with the Implementation Rules for the Management of Designated External Directors of China Minmetals 17%. Meanwhile, we closely monitored key processes such as project bidding, payment settlements, and
Corporation. cost settlements to achieve full-chain supervision of engineering construction.
The Company has established a sound training mechanism for management duties. It regularly conducts internal training on laws and
Strengthen the Closed-Loop Rectification Mechanism to Enhance Governance Efficiency
regulations, professional knowledge, and regulatory policies. Additionally, it actively participates in initial training, continuing education, and
specialized programs organized by institutions such as the China Association for Public Companies and the Shanghai Stock Exchange. These A full-process closed-loop rectification mechanism was established. In 2025, all audit issues were
efforts continuously enhance the professional competence and duty capabilities of directors and senior management. Meanwhile, the Company incorporated into ledger management, achieving a 100% on-schedule rectification completion rate.
strengthens routine communication with directors and senior management. It provides regular updates on production and operations, organizes
industry chain research for directors, and facilitates in-depth understanding of industry trends. This ensures they have sufficient working
conditions, information support, and resource guarantee for efficient duties.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Compliance Management Deepening
In 2025, the Company completed the reform of its audit institution by establishing a new Audit Center. This ensured the independent setup of the
internal audit department, clarified the independence of audit oversight authority, and institutionally delineated the boundaries between
supervision and management responsibilities. By the end of 2025, eight core systems had been formulated, including the Internal Audit Manage-
ment Regulations, Engineering Cost Audit Management Measures, Implementation Measures for Accountability in Irregular Business Investments, Internal
Control Evaluation Measures, and Audit Issue Rectification Management Measures. These documents define the responsibilities, workflows, and
operational standards for audit work, laying a solid institutional foundation for standardized audit practices. Under the leadership of the Audit Adhering to the philosophy of "respecting the law, abiding by rules, and creating value", the Company focuses on "key posts and key areas".
Committee, the Company's Audit Center independently exercises its authority to conduct various inspections on the establishment and Centering on the "four major systems of compliance management, namely organization, rules, operation and support", it adopts the working
implementation of internal controls, the authenticity and completeness of financial information, and to oversee the rectification and implementa- approach of "task listing, institutionalized lists, proceduralized systems and digitalized processes". This embeds compliance requirements into all
tion of internal control deficiencies. posts, rules, procedures and systems, improves the effectiveness of the compliance management system, forestalls major compliance risks, and
steadily advances in-depth and solid compliance management.
The Company has established an internal control supervision and inspection mechanism and conducts annual evaluations. By aligning internal
control standards with actual business operations through self-assessment, the Company completes a comprehensive review of corporate The Company takes the continuously revised Compliance Management Measures as its top-level guiding document. It has successively issued
governance, institutional system construction, development strategies, investment project construction, financial derivatives, contract manage- specialized compliance guidelines for key areas such as anti-commercial bribery, economic sanctions, and export controls. These are further
ment, procurement and sales management, information management, fund management, and financial management. This drives continuous extended into practical documents like the Contract Review Compliance Guidelines and Compliance Guidelines for Payments to Small and
improvement of the internal control system, enhances core momentum, improves core competitiveness, and solidifies the foundation for Medium-sized Enterprises, forming a practical "1+N" institutional framework.
high-quality development.
The Company has established a governance structure where the Party Committee, Board of Directors, and management perform their respective
duties collaboratively and efficiently, continuously improving the compliance management system and strengthening the foundation for lawful
Corporate Governance Tax Management
and compliant operations. All functional departments and business centers/departments earnestly fulfill their primary responsibilities in compli-
ance management, establishing a vertically integrated and collaboratively coordinated compliance management framework.
Institutional System �������
Fund Management
Party Committee Board of Directors
Information
Development Strategy
Management
Self-assessment of Aligning Strengthens top-level design and overarching Reviews and approves key documents including
Internal Control Standards guidance to ensure the implementation of compli- compliance management policies and implementa-
with Actual Business ance initiatives tion plans, and deliberates on major compliance
Operations
Investment Project Procurement and matters
Construction Sales Management
Invoice and Contract
Financial Derivatives Executive Management Compliance Management System General Counsel
Management
Construction Team (Chief Compliance Officer)
Leads the formulation of compli- Oversees research and Participates in major business
Drive ance management system decision-making on major compli- decisions and provides compli-
Company's development plans and organizes ance matters in building the ance opinions, guides the compli-
Sustainability responses to significant compli- Company’s compliance manage- ance management department in
ance risk incidents ment system development. carrying out compliance manage-
ment tasks, oversees the
Strengthen the Foundation for
Keep Refining Internal Control implementation of compliance
High-Quality Development
requirements, and leads the
handling of major legal dispute
Enhance Core Momentum Improve Core Competitiveness
cases.
The Company treats compliance review as a critical lever to continuously deepen legal and compliance risk control. In 2025, the Company
achieved a 100% legal review rate for regulations, economic contracts, power-of-attorney documents, and important decisions, with proposed
compliance recommendations being highly adopted. Compliance review checkpoints are embedded into workflows, with compliance personnel
deeply involved in all stages of large-scale investment projects. The Company resolutely implements the "legal consultation before decision-mak-
ing, no decision-making if illegal" mechanism, striving to build a comprehensive compliance risk prevention chain.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Tax Management
The Company comprehensively identifies compliance risk points in its management and operational activities, completes the
preparation of the "Three Lists" with high quality, and implements them rigorously.
The Company complies with national tax laws and regulations as well as China Minmetals' unified tax management system. It has formulated tax
Risk Identification List management rules such as the Tax Management Measures and Invoice Management System tailored to its business characteristics. The tax depart-
ment collaborates with finance, legal, and business departments to ensure tax compliance aligns with business development.
The Company systematically organizes external laws and regulations, national policies, industry standards,
and internal rules and regulations. It aggregates clause responsibilities that violate compliance obligations,
categorizes risk points into high, medium, and low levels based on impact, and forms a "Risk Identification
List". Tax Compliance Management
Role-Based Compliance Responsibility List
Routine Filing Tax Incentives Cross-Border Taxation
Key personnel are organized to define specific responsibilities based on their roles, incorporating require-
ments from business and supervisory departments. Compliance reviews, management, and actions for each
Strictly implement declaration and Actively apply for tax preferential For import/export or international
responsibility are reflected, resulting in a "Role-Based Compliance Responsibility List".
payment processes for VAT, corporate policies related to new energy and operations, focus on customs duties,
income tax, environmental protection high-tech enterprises to reduce tax VAT refunds, and transfer pricing
tax, and other taxes to ensure data burdens. compliance.
accuracy and timeliness.
Process Control List
Using the Risk Identification List and Role-Based Compliance Responsibility List as foundations, each unit
analyzes and evaluates business management systems and processes, identifying gaps and deficiencies
against compliance management requirements. Process control measures are then developed in accordance
with compliance requirements, specifying control objectives, responsible departments and personnel, control Tax Risk Prevention and Control
frequency, and other details. This integrates compliance management requirements into business manage-
ment systems and processes, forming a "Process Control List".
Internal Control Mechanisms Audit Response
The Company emphasizes compliance culture building, organizing the study of Xi Jinping Thought on the Rule of Law and the training session of
Identify potential risks through internal audits, tax risk Establish tax audit response plans, maintain complete
national security and confidentiality, labor relations, bidding laws, data protection, financial management, contract management, intellectual
assessments, and by addressing loopholes in business documentation for review, and conduct regular
property, production safety, and supply chain compliance. It actively promotes compliance awareness to strengthen employees' compliance
related-party transaction pricing and invoice manage- tax health checks.
consciousness. The Company treats SMEs equally, consistently maintains good cooperative relationships with them, strictly adheres to contract
ment.
terms, and has not experienced any incidents of overdue payments.
Comprehensive Risk Prevention and Control
Tax Informatization Management
The Company strictly adheres to regulations such as the Guidelines for Comprehensive Risk Management of Central Enterprises and the Basic
Standards for Enterprise Internal Control. It has established the Company Comprehensive Risk Management Regulations and the Company Risk Manage- ERP systems such as SAP and Yongyou or specialized tax management systems are adopted to automate tax data processing, filing, and monitor-
ment Report Management Measures, continuously improving a well-defined and systematic risk management framework. This framework centers ing, minimizing human errors.
on the Board of Directors' strategic decision-making, supported by the execution and implementation of the management layer, and reinforced
by the collaborative oversight of the "Three Lines of Defense" (business centers, risk control and functional departments, and audit departments).
The Company advances the development of information systems such as treasury, BI, MES, and WMS, steadily transitioning the internal control
system from "human-based prevention and control" to "technology-based prevention and control". Focusing on key areas, the Company has
Invoice and Contract Management
established a dynamic assessment and monitoring mechanism for major risks, accelerated the construction of a digital risk control platform,
upgraded risk prevention capabilities, and rapidly improved a comprehensive, efficient, and coordinated risk management system.
Strictly implement VAT invoice issuance, receipt, and archiving procedures, with tax responsibilities clearly defined in contract terms.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Upholding Integrity and Trust- Case
Minmetals New Energy Held 2025 Conference on Party Conduct, Integrity Building, and Anti-Corruption
Work Alongside Warning Education Session
worthiness Building Enterprises On February 12, 2025, Minmetals New Energy convened its 2025 Conference on Party Conduct, Integrity Building, and Anti-Corruption
Work alongside a warning education session. The meeting conveyed key directives from relevant conferences, reviewed 2024 achieve-
on Solid Foundations ments in Party governance, outlined 2025 tasks, and featured the screening of the cautionary film Loyalty and Betrayal.
Minmetals New Energy consistently prioritizes anti-corruption efforts, refining a multi-tiered supervision and management framework to
establish a comprehensive integrity risk prevention and control mechanism. We strengthen warning education, unclog channels for supervision
and reporting, strictly adhere to the bottom line of clean cooperation, and advance the three-pronged anti-corruption framework (the integrated
effort to ensure no one dares to, is able to, and has no desire to engage in corruption) in a holistic manner, underpinning the steady and long-term
development of the company with strict discipline.
Integrity and Ethical Building
The Company strictly complies with relevant laws and regulations such as the Criminal Law of the
People's Republic of China, the Supervision Law of the People's Republic of China, and the Anti-Money
Laundering Law of the People's Republic of China. It formulates and implements internal rules including
the Supervision and Inspection Measures for the 'Three Major and One Big' Decision-Making System, the
Implementation Measures for the Responsibility System of Party Conduct and Integrity Construction, the
"Implementation Measures for the Integrity Talk System for Key Position Cadres, and the Management
Measures for Integrity Files of Party Committee-Managed Cadres. These efforts foster a culture of "dare
not, cannot, and do not want to corrupt", creating a compliant, self-disciplined, and ethical operating
environment that standardizes employee conduct, prevents corruption, and safeguards the rights
and interests of all stakeholders.
The Company has established a whistleblowing complaint handling procedure and implemented a comprehensive complaint management and
The Company has established an anti-corruption management framework that fully covers the "Party
resolution mechanism to ensure all employees and relevant parties can report suspected violations involving the Company through the following
Committee - Supervision Department - Subsidiary Enterprises." The Party Committee oversees the
Party Supervision Subsidiaries channels under confidential conditions.
advancement of corporate anti-corruption management at the decision-making level. The Supervi- Committee Department
sion Department organizes or coordinates anti-corruption initiatives in accordance with its functional
responsibilities. Subsidiary enterprises establish dedicated supervisory bodies or positions staffed
with full-time (or part-time) personnel to carry out anti-corruption work in compliance with
regulations, discipline, and laws. Discipline Inspection Commission of Minmetals New
Mail:
Energy Materials (Hunan) Co., Ltd.
Minmetals New Energy Strengthens Integrity Defenses Through On-Site Warning Education to Drive
Case
High-Quality Development
On July 7, 2025, the Minmetals New Energy Party Committee organized
Reporting E-mail Address: cylkjbx@163.com
concentrated on-site warning education for Party members and cadres.
Participants visited an integrity exhibition and the Hunan Anti-Corrup-
tion Education Center, gaining profound insights into the historical
progression of Party conduct construction, notable anti-corruption
achievements, and sobering lessons from typical provincial cases.
Hotline: 0731-81867696 (landline) / 18229755103 (mobile)
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Proactively establishing a robust anti-commercial bribery system not only effectively mitigates To strengthen supervision and management of anti-corruption and anti-bribery among business partners, the Company signed the Supplier
risks but also serves as a strategic investment for companies to build a strong reputation, Integrity Commitment Letter with all suppliers, the Key Position Integrity Commitment Letterwith cadres in critical roles, and the Employee Integrity
Anti-Corruption Training Statistics enhance internal management efficiency, and achieve sustainable development. The Company Commitment Letter with employees, covering all personnel involved in procurement, sales, and finance-related areas. Any integrity issues
adheres to systems such as the Complaint and Report Acceptance Work Procedures to standardize discovered are rigorously investigated and dealt with in accordance with regulations and discipline, targeting both individuals and cooperating
whistleblower protection mechanisms and safeguard their legitimate rights and interests. The enterprises. The Company's Measures for Handling Whistleblowing and Complaint Acceptance clearly defines the specific workflow for whistleblow-
Company designates dedicated personnel to handle complaint reception, publicly discloses ing and complaints, establishing multiple reporting channels such as complaint mailboxes, email addresses, hotlines, and QR code reporting.
Number of Management Personnel anti-corruption reporting channels including email and phone, and strictly maintains confidenti- Both real-name and anonymous reporting modes are available to accept reports and feedback from business partners.
Trained in Anti-Corruption ality for whistleblowers and reported content. The disciplinary inspection and compliance
departments conduct regular reviews, spot checks, and investigations. In accordance with the The Company thoroughly implements the spirit of the 20th National Congress of the Communist Party of China and successive plenary sessions,
case review and investigation procedures outlined in the Discipline Inspection Organs' Supervision
and Enforcement Rules of the Communist Party of China, the Company has opened multiple
adhering to the strategic deployment of full and rigorous Party self-governance. It treats anti-corruption as a foundational project to ensure the
high-quality development of the enterprise, continuously deepening the integrated advancement of the "dare not, cannot, and do not want to
internal and external reporting channels, including phone, email, mailbox, and WeChat. It has corrupt" mechanism. The Company insists on opposing all corruption and investigating every case, setting a long-term goal of handling no fewer
established a comprehensive management framework covering complaint acceptance, prelimi- than two cases for review and filing annually. In 2025, the Company fully accomplished its targets, taking disciplinary action against two individu-
Number of Employees Trained in nary verification, case filing, and case adjudication, ensuring reviews, verifications, and disposi- als. Neither the company nor its employees were involved in any court-adjudicated corruption cases.
Anti-Corruption tions are conducted in compliance with regulations and discipline.
Whole-process Management Specifications
Percentage of Management Trained in
Anti-Monopoly and Anti-Unfair Competition
Anti-Corruption
Petition Acceptance
Fair competition is the source of market vitality. The Company consistently adheres to the bottom line of the rule of law and business principles,
Percentage of Employees Trained in strictly complies with relevant national laws and regulations as well as China Minmetals' compliance requirements, upholds fair and orderly
Anti-Corruption Preliminary Verification
������� 02 competition, actively maintains market order, and safeguards the legitimate rights and interests of all parties through standardized and compli-
ant business practices.
The Company strictly complies with laws and regulations such as the Anti-Monopoly Law of the People's Republic of China, the Anti-Unfair Competi-
tion Law of the People's Republic of China, the State Council's Provisions on Standards for Declaration of Concentration of Undertakings, the Interim
Provisions on Prohibiting Monopoly Agreements, and the Interim Provisions on Prohibiting Abuse of Dominant Market Position. It also adheres to the
Number of Anti-Corruption
China Minmetals Corporation Anti-Monopoly Compliance Guidelines and the Company's internal Compliance Management Measures. On the basis of
comprehensively advancing compliance management and considering compliance risk assessments, the Company places particular emphasis on
Training Sessions Conducted
strengthening compliance management in the areas of anti-monopoly and anti-unfair competition. Its operations conform to all applicable
domestic, international, and local laws and standards regarding anti-monopoly, fair trade, and anti-unfair competition in the regions where it
conducts business. This ensures healthy competition with rivals, maintains normal business interactions with customers, suppliers, and distribu-
Case Trial 04 tors, and prevents any monopolistic practices.
The Company conducts regular activities to study the Party Constitution, regulations, and
discipline, carrying out eight targeted centralized warning education sessions. It circulated 105
typical cases investigated and handled by discipline inspection commissions and supervisory
committees at all levels online, and arranged for grassroots Party branches to organize themed
Party Day activities such as "Warning Education" and "Family Traditions and Family Education."
The Company organized the "Five Ones" activities during the Warning Education Month,
completing mandatory tasks such as studying typical cases reported at the central level and the
Compilation of Typical Cases by China Minmetals Corporation, holding warning education
meetings, and delivering thematic Party lectures. It meticulously planned warning education
exhibitions and immersive on-site education, achieving full coverage of both content and target
audiences in warning education.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Walking Together and Sharing Investor Hotline Shareholders' Meeting
Development
Minmetals New Energy attaches great importance to communication and rights protection with stakeholders such as shareholders, creditors, and
investors. Through a standardized governance system, diversified communication channels, and comprehensive rights protection measures, the
Inquiry Email Investor Research Event
Company builds an efficient and collaborative bridge of interest linkage, effectively safeguarding the legitimate rights and interests of all
Online Offline
stakeholders, and achieving mutual prosperity and development together.
Stakeholder Engagement SSE E-interactive Platform Performance Briefing
The Company actively fosters a fair, transparent, and mutually beneficial investor relationship, proactively listens to investor feedback, enhances
With compliance held the top priority, the Company employs a hybrid "online + offline" approach to meet diverse investor needs. It provides
market value management, and safeguards the long-term interests of its investors. By standardizing investor relations activities, the Company
multiple communication channels, including investor hotlines, inquiry emails, the SSE E-Interaction platform, earnings briefings, investor research
has gradually fostered a corporate culture that serves and respects investors. It guides all employees to cultivate investor protection awareness
activities, and shareholder meetings to address investor concerns promptly. The Company maintains standardized records such as investor
and integrates investor demands into daily operations and management. Meanwhile, the Company continuously optimizes communication
communication logs, disclosure approval forms, and research reception procedures. These measures refine workflows, preserve communication
services to attract high-quality investors, building a stable and premium investor base. This enhances the Company's capital market image and
and research records, and enhance the standardization of investor relations management. In 2025, the Company participated in or hosted 8
achieves mutual development with investors.
investor briefings and roadshows, conducting over 300 in-person investor research receptions. The response rates to investor calls and SSE
E-interaction inquiries, as well as the frequency of offline investor research receptions, showed significant improvement.
The Company strictly implements the Investor Relations Management Measures, establishing a clear investor relations management framework.
The Board Secretary is designated as the responsible person for investor relations management activities, overseeing their planning and
execution. The Securities Department, as the functional unit for investor relations management, defines roles and refines workflows to ensure
orderly progress. The Company has established an internal collaboration mechanism, strengthening coordination with operational, financial, and
R&D departments to promptly collect operational data, major events, and development plans. This ensures efficient and compliant information
dissemination to investors and stakeholders.
In 2025
Company's Participation in or Organization of Investor Offline Investor Research Visits
Conferences and Roadshows
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Upholding Integrity and Driving Innovation, and Straightening the Foundation for Shared Prosperity Through Governance
Shareholder and Creditor Rights
The Company has established multi-dimensional shareholder communication channels, including investor hotlines, dedicated email addresses,
offline exhibition hall visits + on-site communication sessions, and online interactive platforms. Designated personnel are responsible for
addressing shareholder inquiries and feedback, ensuring shareholders can conveniently and promptly express their views. These measures
safeguard shareholders' rights to information, participation, expression, and oversight, enhancing the standardization of shareholder communi-
cation and the operation of shareholders' meetings. Prior to shareholder meetings, the Company strictly adheres to statutory timelines and
The Company strictly adheres to regulations such as the Rules for Shareholders' Meetings of Listed Companies and the Rules of Procedure for regulations by publishing meeting notices through designated media, clearly stating the meeting time, location, agenda, and voting methods.
Shareholders' Meetings, establishing clear shareholder communication policies and Rules of Procedure for Shareholders' Meetings. These define the Concurrently, complete meeting documents are prepared to ensure shareholders are fully informed of key content, safeguarding their right to
principles, methods, and frequency of shareholder communication, detailing the entire process requirements for convening, conducting, voting, know. During implementation, there are no instances of missed shareholder notifications or document omissions, achieving 100% notification
and announcing shareholders' meetings. Additionally, they specify core provisions such as the recusal of related shareholders and the delegation delivery rate and seamless online document accessibility. During meetings, a hybrid format of "in-person meetings + online voting" is adopted to
of authority in shareholders' meetings, providing a solid institutional foundation for all operations and ensuring that shareholder communication ensure equal participation for all shareholders, enhancing engagement. In 2025, all shareholder meetings were conducted in this manner.
and decision-making processes are well-regulated and compliant. Post-meeting, core information such as resolutions, voting results, and separate vote tabulations were promptly disclosed via exchange-designat-
ed media within stipulated timeframes, ensuring transparency and protecting shareholders' right to know.
For all shareholders' meetings, the Company engages professional lawyers to provide on-site witness and issue legal opinion letters for
disclosure. The Company strictly implements the recusal system for related shareholders. Before deliberating on proposals such as related-party The Company fully safeguards creditor rights, maintaining zero bad credit records in lending activities throughout 2025.
transactions that may harm the interests of non-related shareholders, the Company compiles and discloses the list of related shareholders in
advance, clarifying the scope and procedures for recusal. Related shareholders voluntarily abstain from the deliberation and voting of relevant
proposals, with the entire process subject to supervision, effectively safeguarding the legitimate rights and interests of non-related shareholders.
In 2025, the Company convened 3 extraordinary shareholders' meetings and 1 annual shareholders' meeting for 2024, approving 17 proposals.
Information
The Company adheres to the principles of fair, just, and transparent information disclosure,
providing stakeholders with truthful, accurate, complete, and timely financial, operational, and
In 2025 governance information. It fulfills the disclosure obligations of a listed company and safeguards
Company Shareholders’ Extraordinary 2024 Annual Shareholders' Adoption of Resolutions Disclosure the right to know for all stakeholders.
General Meetings Held Meeting The Company strictly complies with all regulatory requirements for listed companies, strength-
ens its primary responsibilities, and continuously enhances information disclosure manage-
ment. It proactively accepts supervision from regulatory authorities, investors, and the broader
society, demonstrating corporate accountability through transparent and standardized
governance, thereby solidifying the foundation of market trust. In 2025, the Company legally and
Interim Announcements Disclosed compliantly disclosed over 50 interim announcements, 4 periodic reports, and other disclosure
by the Company in accordance with documents, effectively fulfilling its information disclosure obligations as a listed Company. By
Laws and Regulations combining text, charts, images, and other formats, the Company ensures investors can promptly
The Company adheres to equal treatment for all investors and resolutely prohibits any abuse of power or actions that harm investor interests. In
understand its operational status and investment value. It places strong emphasis on the
line with the practical needs of operation and corporate governance, we have engaged Jinmen Finance, a third-party professional institution, to
organize investor earnings briefings after the release of each periodic report. We also actively participate in a variety of industry activities,
including roadshows hosted by the Shanghai Stock Exchange (SSE), group earnings briefings for listed companies under the Hunan jurisdiction of
Over 50 readability of disclosures to reduce interpretation difficulty for investors and publishes bilingual
(Chinese-English) ESG reports, consistently prioritizing communication with overseas investors.
the China Securities Regulatory Commission (CSRC), and group earnings briefings for listed companies affiliated to China Minmetals Corporation.
While improving communication efficiency with investors and smoothing communication channels, we strictly standardize investor relations (IR) Number of Periodic
management to ensure all relevant work is lawful, compliant, fair and impartial, and that all investors enjoy equal rights to information access and Reports Disclosed
communication.
Meanwhile, the Company places high importance on protecting the
rights and interests of minority investors. While ensuring the lawful
In 2025
and effective convening of shareholders' meetings, it actively
facilitates minority shareholders' participation by providing online
Organization of Offline Investor
voting channels to reduce their attendance costs. The votes of minori-
Research Events
ty investors are separately counted, with the results publicly
disclosed. The Company also earnestly accommodates offline
investor research activities, organizing over 10 such events in 2025. Over person-times
During the election of directors and supervisors, a cumulative voting
system is adopted to effectively safeguard minority shareholders'
voting rights and fully protect their legitimate interests.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Future Outlook
Future Outlook
A New Journey Begins Striving to Lead. Minmetals New Energy will adhere to Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era as its fundamental guide, thoroughly study and
implement the spirit of the 20th CPC National Congress and the second, third, and fourth plenary
sessions of the 20th CPC Central Committee, anchor itself to the decisions and deployments of the CPC
Central Committee and the State Council, and uphold Minmetals' original mission of "dedicating to the
nation through mining and shouldering the responsibility of building a mining powerhouse". Maintain-
ing the general principle of pursuing progress while ensuring stability, the Company will fully, accurate-
ly, and comprehensively implement the new development philosophy, rigorously advance the
implementation and effectiveness of rectifications from inspections and economic responsibility audits
conducted by the CPC Central Committee and Minmetals' Party leadership, and coordinate efforts to
stabilize growth, strengthen innovation, optimize industries, deepen reforms, prevent risks, ensure
safety, promote green development, and enhance Party building. Through practical action, it will fulfill
its mission and demonstrate its commitment.�
In the new year, the Company will anchor itself to the goals of the 15th Five-Year Plan, focus precisely,
and persist with long-term efforts to achieve its annual operational and developmental tasks. It will
deepen its core business, foster synergy across industrial chains, and paint a new vision for ecosystem
development across the entire industrial chain. By tackling core challenges and empowering transfor-
mation, it will focus on original innovation and key technological breakthroughs, invigorating new
momentum for the commercialization of scientific and technological achievements to foster the
development of new quality productive forces. Benchmarking against world-class standards and
deepening reforms, the Company will activate endogenous drivers through market-oriented mecha-
nisms, driving quality and efficiency improvements with tangible results. It will uphold bottom-line
thinking and implement systematic risk prevention, building robust safety barriers in key areas such as
industrial and supply chains and workplace safety. Guided by green principles and empowered by
low-carbon initiatives, the Company will advance the construction of zero-carbon factories and the
application of industrial green microgrids, solidifying the foundation for ecological development.
Adhering to the "20-character" standards for state-owned enterprise leaders, it will refine its work ethic
and capabilities through practical action, unite efforts to overcome challenges, and continue writing
new chapters.�
Steadfast in Purpose; Advancing with Stability. With an unwavering spirit and relentless determination,
Minmetals New Energy will steadfastly promote high-quality development, ensuring a strong start to
the 15th Five-Year Plan. In the journey to safeguard national energy security, drive industrial upgrading,
and contribute to the "dual carbon" goals, the Company will exemplify the mission of a central
enterprise and deliver a responsible answer to the times!
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Appendix
Appendix 1: Key Performance Table Indicator
Percentage of Total Environmental Protection
Unit
%
Investment to Operating Revenue
Amount of Major Administrative Penalties Imposed by
Environmental Protection and Other Relevant
RMB 10,000 0.00 0.00 /
Authorities for Environmental Incidents During the
Reporting Period
Environment Pollutant Discharge
Wastewater Discharge 10,000 Tons 0.00 0.00 0.00
Indicator Unit 2025� 2024 2023 Industrial Wastewater Discharge 10,000 Tons 0.00 0.00 0.00
Water Resource Utilization Pollutant Equivalent
Ammonia Nitrogen Value/Total 0.00 0.00 0.00
Emissions (Ton)
Total Water Consumption 10, 000 Tons 162.61 122.78 128.78
Pollutant Equivalent
Freshwater Intake 10, 000 Tons 106.81 82.46 94.49 COD Value/Total 0.00 0.00 0.00
Emissions (Ton)
Total Volume of Recycled Water 10, 000 Tons 55.80 40.32 34.29
Emissions of Air Pollutants (Ammonia) Ton 0.64 0.48 0.69
Proportion of Total Recycled Water % 34.32 32.84 26.63
Emissions of Air Pollutants (Sulfuric Acid Mist) Ton 0.11 0.37 0.06
Water Consumption Per RMB Million Revenue Tons/Million Revenue 174.10 221.66 120.03
Air Pollutant Emissions (Particulate Matter) Ton 1.30 2.08 1.54
Energy Utilization
Nitrogen Oxides Emissions Ton 6.52 4.62 /
Total Energy Consumption 10 tce
Sulfur Oxides Emissions Ton 1.80 1.28 /
Direct Energy Consumption 104tce 1.32 0.95 /
Waste Disposal
Fossil Energy Consumption 104tce 1.32 0.95 /
Total Solid Waste Disposal Ton 8,231 1,970.94 /
Gasoline Consumption L 3,133.65 1,297.30 959.46
Generation Volume of General Industrial Solid Waste Ton 7,553 1,607.60 /
Natural Gas Consumption 10 tce
Generation Volume of Hazardous Waste Ton 683 363.34 /
Non-fossil Energy Consumption 104tce 0.11 0.04 /
Hazardous Waste Disposal Ton 678 363.34 /
Clean Energy Consumption 10 tce
Total Hazardous Waste Generated Per Million Revenue Ton/Million Revenue 0.073 0.066 /
Proportion of Clean Energy Consumption % 57.51 11.19 /
Total Non-hazardous Waste Generated Per Million Revenue Ton/Million Revenue 0.81 0.29 /
Indirect Energy Consumption 10 tce
Greenhouse Gas Emissions Management
Purchased Electricity 104tce 9.13 6.72 6.74
Total GHG emissions 10,000 tCO₂e 44.64 34.07 33.08
Purchased Steam 10 tce
Scope 1 GHG emissions 10,000 tCO₂e 3.41 2.67 1.71
Tons of Standard Coal
Energy Consumption Per RMB Million Revenue Equivalent Per Million 11.91 15.33 7.37 Natural Gas 10,000 tCO₂e 2.15 1.54 0.64
Revenue
Environmental Compliance Management Carbonate 10,000 tCO₂e 1.27 1.13 1.07
Total Environmental Protection Investment RMB 10,000 5,008.81 5,369.98 4,139.78 Gasoline Tons of CO₂ Equivalent 7.42 2.92 2.16
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Appendix
Indicator Unit 2025� 2024 2023 Indicator Unit 2025� 2024 2023
Scope 2 GHG Emissions 10,000 tCO₂e 41.23 31.40 31.36 By Gender
Purchased Electricity 100 Million kWh 7.43 5.46 5.49 Male Person 1,813 1,576 1,810
�������������������������������������������������� ��������������������
Purchased Heat (Steam) 650,000 Gigajoules 19.59 24.22 22.92 Female Person 500 488 520
GHG Emission Reductions Ton of CO₂ Equivalent 25,718 11,648 / Percentage of Female Employees % 21.62 23.64 22.32
Scope 1 emission reductions Ton of CO₂ Equivalent 5,513 4,359 / By age
Scope 2 Emission Reductions Ton of CO₂ Equivalent 20,205 7,289 / 30 and Below Person 810 665 808
Tons of CO₂ 30-50 (Inclusive) Person 1,386 1,251 1,398
Direct (Scope 1) Greenhouse Gas emissions Per Equivalent /RMB 3.65 4.82 1.59
Million Revenue Million Revenue
Above 50 Person 117 148 124
Tons of CO₂
Indirect (Scope 2) Greenhouse Gas Emissions Per Equivalent /RMB 44.14 56.69 29.23 By Professional Category
RMB Million Revenue Million Revenue
Tons of CO₂ Production Personnel Person 1,492 1,280 1,590
Greenhouse Gas Emission Intensity Per RMB Equivalent /RMB 47.79 61.51 30.83
Million Revenue Million Revenue
Sales Personnel Person 12 19 20
Procurement Personnel Person 32 18 /
Technical Personnel Person 637 593 558
Social Dimension Financial Personnel Person 21 20 23
Administrative Personnel Person 119 134 139
Indicator Unit 2025� 2024 2023 By Education Background
Doctoral degree Person 12 12 14
Employee Recruitment and Employment
Total Number of Employees Person 2,313 2,064 2,330 Master's degree Person 216 228 207
Ethnic Minority Employees Person 124 111 148 Bachelor and Below Person 2,085 1,824 2,109
Percentage of Ethnic Minority Employees % 5.36 5.38 6.35 By Region
Disabled Employees Person 5 5 / Chinese Mainland Person 2,313 2,064 2,330
Percentage of Disabled Employees % 0.22 0.24 / Employee Remuneration and Benefits
Veteran Employees Person 61 32 / Social Insurance Coverage % 100.00 100.00 100.00
Percentage of Veteran Employees % 2.64 1.55 / Per Capita Compensation RMB 10,000 12.59 11.30 11.431
Revenue Per Capita RMB 10,000 424.36 252.00 460.47
By Employment Type
Full-time Employees Person 2,313 2,064 2,330 Note1:Due to adjustments in statistical methods, historical data has been retrospectively revised.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Appendix
Indicator Unit 2025� 2024 2023 Indicator Unit 2025� 2024 2023
Employee Development and Training Social Welfare
Frontline Employee Training Coverage Rate % 100.00 100.00 100.00 Community Welfare Investment RMB 10,000 0 2.80 3.40
Community Philanthropic Investment Per RMB Million RMB 10,000 0 0.00051 0.00032
Three-level Safety Education Coverage Rate % 100.00 / /
Revenue
Employee Care and Assistance Number of Local Employees Hired Person 1,836 1,851 2,330
Amount of Investment in Employee Assistance RMB 14,000 18,000 / Percentage of Local Employees % 79.38 89.60 100.00
Number of Needy Employees Assisted Person 7 9 / Total Number of Public Welfare Activities Times 7 / /
Innovation and R&D Volunteers Participating in Public Welfare Activities Person 143 / /
R&D Investment RMB100 Million 2.67 2.32 3.77 Volunteer Hours in Public Welfare Activities Hours 14 / /
R&D Investment Ratio % 2.87 4.18 3.51
Number of R&D Personnel Person 307 301 282
Governance
Proportion of R&D Personnel % 13.27 13.692 12.10
Total Number of Valid Patents Cases 202 162 141
Indicator Unit 2025� 2024 2023
Valid Patents Per RMB Million Revenue Cases 0.020 0.029 0.023
Corporate Governance
Number of Software Copyrights � 3 3 3
Number of Shareholders' Meetings Times 4 5 3
Number of Software Copyrights Per RMB Million Revenue Cases 0.00032 0.00054 0.00028
Number of Board Meetings Times 12 11 9
Health and Safety
Number of Audit Committee Meetings Times 7 5 5
Work Safety Investment RMB 10,000 1,047.53 732.7 533.4
Number of Nomination Committee Meetings Times 3 2 /
Proportion of Safety Production Investment to Revenue % 0.11 0.08 0.05
Number of Strategy Committee Meetings Times 2 2 /
Safety Production Training Duration Hours 55,000 58,000 53,600
Proportion of Independent Directors on Audit Committee % 66.67 66.67 66.67
Average Safety Training Hours Per Capita Hours 20 28 23
Proportion of Independent Directors on Remuneration % 66.67 66.67 66.67
Committee
Work safety training sessions Hours 163 183 161
Percentage of Independent Directors in Nomination % 66.67 66.67 66.67
Committee
Number of Employees Trained in Workplace Safety Person-times 12,260 16,295 13,930
Attendance Rate of Board Members % 100.00 100.00 100.00
Employee Coverage Rate of Occupational Safety Training % 100.00 100.00 100.00
Average Tenure of Board Members Year 2.37 3 3
Amount of Investment in Occupational Injury
RMB 10,000 118.68 81.47 /
Insurance for Employees
Does the CEO Serve as Chairman of the Board / No No /
Occupational Injury Insurance Coverage % 100 100 /
Proportion of Independent Directors % 33.33 37.50 33.33
Incidence Rate of Occupational Diseases % 0.00 0.00 /
Standard Deviation of Age Among Directors, Supervi- Years 7.99 6.97 8.35
sors, and Senior Management
Number of Work Safety Accidents Cases 0 0 0
Note2:Due to adjustments in statistical methods, historical data has been retrospectively revised.
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Appendix
Indicator Unit 2025� 2024 2023
Proportion of Female Directors % 22.22 12.50 0.00 Number of Investor Calls Answered Times 280 / /
Percentage of Independent Directors with Tenure % 0.00 0.00 0.00 Number of Periodic Reports Disclosed Units 4 / /
Exceeding 6 Years
Percentage of Independent Directors Serving on 58 (Excluding
% 0.00 0.00 0.00
More Than 3 listed Companies Supporting
Number of Interim Announcements Issued Times Documents / /
Is the Chair of the Audit Committee an Accounting / Uploaded with
Yes Yes /
Professional Announcements)
Compliance in operation
Number of Compliance Training Sessions Times 33 13 12
Duration of Compliance Training (hours) Hours 23.60 27.50 20.00
Number of Compliance Training Participants Person-times 459 500 488
Percentage of Directors Trained on Anti-Bribery and % 100.00 / /
Anti-Corruption
Percentage of Management Personnel Trained on %
Anti-Bribery and Anti-Corruption 100.00 100.00 100.00
Percentage of Employees Receiving Anti-bribery and % 100.00 100.00 100.00
Anti-corruption Training
Number of Anti-corruption Training Sessions Times 72 48 45
Anti-corruption Training Hours Hours 106 62 60
Number of Employees Trained on Anti-corruption Person-times 2,911 2,000 1,593
Number of Anti-corruption Articles and Case Studies Times 31 23 17
Published
Amount Involved in litigation or Major Administra-
tive Penalties Due to Unfair Competition During the Times 0 / /
Reporting Period
Number of Major Litigations % 1 / /
Number of Arbitration Cases Units 1 / /
Investor Relations and Shareholder Rights Management
Performance Briefing Times 6 4 4
Number of Roadshows Times 8 / /
Number of Investor Exchange Meetings Times 6 / /
Number of Platform Replies Times 45 / /
Minmetals New Energy Materials (Hunan) Co., Ltd. 2025 � Environmental, Social, and Governance (ESG) Report Appendix
Appendix II: Index Table Feedback Form
ESG Guidelines for Centra Dear Readers,
Section Title Exchange Guidelines4
SOEs3
Greetings! Thank you for reading the Environmental, Social, and Governance (ESG) Report of Minmetals New Energy. To enhance the
About This Report G5.1�G5.2 Article 2, Article 4, Article 6
quality and standard of the report, we sincerely hope you can provide valuable comments and suggestions. We look forward to your
feedback!
Message from the Chairman / Article 2
About Us / Article 12
Selective Questions (Please mark "√" in the appropriate box)
Article 11, Article 14, Article 15, Article 16,
ESG Management G5.1�G5.2
Article 17, Article 51 Please evaluate the extent to which this report reflects Minmetals New Energy's impact on the economy, society, and environment:
Excellent Good Average Poor Very Poor
Stakeholder Engagement G3.1�G3.2�G3.3�G4.1�G4.2 Article 9, Article 52, Article 53
Please evaluate this report's response and disclosure to stakeholder concerns:
Materiality Topics / Article 5, Article 7, Article 9, Article 10, Article 18
Excellent Good Average Poor Very Poor
Smart Resource Empowerment,
E.1.1�E.1.2�E.1.3�E.1.4�E.5.1�
Breaking New Ground in Article 34, Article 35, Article 36, Article 37
E.5.2E.5.3�E.5.4 Please evaluate the clarity, accuracy, and completeness of the disclosed information, indicators, and data in this report:
Recycling
Environmental
Dimension: Fulfilling Ecological Excellent Good Average Poor Very Poor
Green Energy in Responsibility, Committed E.2.1�E.2.2�E.2.3�E.4.1 Articles 29, 30, 31, 32, and 33
Action, to Going Green
Painting a Shared Please rate the readability of this report's content:
Future with Green
Pursuing "Dual Carbon" Excellent Good Average Poor Very Poor
Goals, Empowering the E.3.1�E.3.2�E.3.4�E.5.6 Articles 20, 21, 22, 23, 24, 25, 26, 27, and 28
Future
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Dreaming in the Workplace and
S1.1�S1.2�S1.3�S1.4 Article 49, Article 50 Excellent Good Average Poor Very Poor
Growing Together
Sincerely Service Customers and
S2.1�S2.2 Article 44, Article 47, Article 48
Value Co-creation
Open Questions
Social Dimension:
Hearts Toward the Advancing Innovation for Article 41, Article 42, Article 43
S2.3
Warm Sun Research for Long-Term Impact
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Building a Win-Win Intellectual Property Protection,
Ecosystem with S2.3 /
Building Momentum for Progress What additional information would you like to see disclosed in this report?
Responsibility
Collaborative Synergy and Shared Article 44, Article 45
S3.1�S3.2 What suggestions or comments do you have regarding Minmetals New Energy's ESG work?
Value Across the Chain
Public Welfare Warming Hearts, Articles 38, 39, and 40
S4.2�S4.3�S4.4
Enriching Society
If willing, please feel free to provide your personal information:
Party Building as the Guiding
G1.1 Article 51
Force: Uniting and Empowering
Strengthening Enterprises by Name: Occupation: Institution:
Governance
Dimension: Excellence in Governance, Making G1.1�G1.2�G1.3 Article 51
Upholding Integrity Steadfast and safe Progress Tel.: Email: Address:
and Driving
Innovation, Compliance as the Shield and
S4.1, G2.1, G5.1, G5.2 Article 52
Strengthening the Upholding Integrity
Foundation for Our Contact Information
Shared Prosperity Upholding Integrity and
Through Trustworthiness Building G2.2, G2.3 Article 54, Article 55, Article 56
Governance Enterprises on Solid Foundations Minmetals New Energy Materials (Hunan) Co., Ltd.
Walking Together and Sharing Website: http://www.cylico.com/
G3.1, G3.2, G3.3, G4.1, G4.2 Article 9, Article 53
Development
Contact Email: cylico@minmetals.com
Note : The Central SOEs ESG Guidelines refer to the Reference Indicator System for ESG Special Reports of Central SOE-controlled Listed Companies.
Note4: Exchange Guidelines refer to the Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (Trial).
