专注于锰系电池正极材料，与固态电池头部企业达成战略合作

⚫⚫⚫⚫⚫ Seethe last page for disclaimerAPPENDIX 1Summary➢The company's focus is on researching and manufacturing manganese-based battery cathode materials. It continuously cultivatessegmented markets and promotes product iteration and upgrading. In recent years, the company has also continuously improved andoptimised its industrial chain layout. Its manganese-based battery materials are used in primary and new energy batteries, and havea high brand value and customer recognition. The company has long recognised the importance of industrial chain layout,expanding upstream resources to ensure a high-quality, low-cost supply of raw materials. At the same time, the company has beenactively seeking other high-quality manganese ore resources and developing its presence in downstream industries. An industrialchainof electrolytic manganese dioxide, manganese trioxide and lithium manganese oxide has now been established. In 2024, thecompany achieved revenue of 1.912 billion yuan, marking an 11.6% year-on-year decrease. Due to the decrease in the price of theraw material, lithium carbonate, the price of lithium manganese oxide also decreased. Although sales of lithium manganese oxideincreased, revenue decreased year-on-year. Net profit attributable to the parent company was 315 million yuan, a year-on-yeardecreaseof 10.59%, mainly due to a fall in investment income from joint ventures.➢The manganese dioxide electrolyte business is steadily growing. The company is pursuing a differentiated competitive strategytodeepen its relationship with major clients and maximise customer satisfaction. The Market Decision Committee is making timelydecisions, accurately purchasing raw materials, reducing procurement costs and actively promoting technological transformationprojects in the production base. Upgrading production equipment and optimising process flow has reduced labour costs, materiallosses and energy consumption. Production and sales of EMD products remained balanced throughout2024, with sales volumeincreasing by 11.63% year on year. Mercury-free alkaline manganese products continue to dominate the market, furtherstrengthening market share and brand influence. Progress has also been made in the development of manganese ore resources, withJingxi Electrification obtaining the mining rights for the Aitun manganese ore deposit, thereby accelerating the relevant miningprocesses.➢Strategic cooperation with leading solid-state battery companies.Production and sales of lithium manganese oxide productsremained balanced throughout2024, achieving a capacity utilisation rate of 72% and year-on-year sales growth of 16.54%. Averagemonthly sales exceeded 2,000 tonnes in the fourth quarter, ranking among the top inindustryin terms of market share. GuangxiLijin, the holding subsidiary, has increased its strategic cooperation and collaborative research and development with downstreamcustomers. It has also further deepened its cooperation with Xingheng Power, a benchmark enterprise in the two-wheeled vehiclebattery industry, becoming its supplier. Strategic cooperation has been established with mainstream domestic car manufacturers andleading solid-state battery enterprises, with whom it is carrying out joint development projects. In addition, Guangxi Lijin hassuccessfully obtained IATF 16949 automotive quality system certification and completed the first phase of the Xiangtan Lijin30,000-ton spinel lithium manganese oxide battery material project (a 20,000-ton production line), further optimising the productioncapacity structure.According to the Investor Relations Activity Record of Xiangtan Electrochemical Technology Co., Ltd. onDecember 2, 2024, manganese has the characteristics of abundant resources, high voltage platform, safety and reliability. Atthesame time, solid electrolytes can improve the manganese leaching of manganese-based materials in liquid electrolytes, improve thecycling and storage performance of manganese based positive electrode materials. Therefore, there is a good adaptability betweenmanganese-based materials and the parameter requirements of solid-state batteries, and there is a great opportunity for manganese-based materials to be applied in solid-state battery systems. The company is currently collaborating with outstanding enterprises insolid-state battery technology for joint research and development.➢Adhere to technological leadership and innovation-driven development. The company places great importance on innovation inresearch and development, closely integrating it with production and strategy. In 2024, the company invested 102 million yuaninR&D,accounting for 5.33% of its operating revenue. The company is promoting product research and development to improve themass production of EMD 2.0 products with excellent performance and low cost. The EMD 4.0 product has completed pilot testingand the large-scale testing process is continuously being optimised. The capacity and cycling performance of lithium manganes