2023 Semi Annual Report of Huayou Cobalt

2023 Semi-Annual Report
Stock Code: 603799 Stock Name: Huayou Cobalt

of
Zhejiang Huayou Cobalt Co., Ltd.
August, 2023
1 / 262
Important Notes
I. The Board of Directors, Board of Supervisors, directors, supervisors and senior officers of the
Company warrant the truthfulness, accuracy and completeness of the contents of this
semi-annual report and that there is no false representation, misleading statement contained
herein or material omission from the report, for which they will assume joint and several
liabilities.
II. All directors have attended the Board meeting.
III. This semi-annual report is unaudited.
IV. Chen Xuehua, the person in charge of the Company, Wang Jun, the accounting principal, and
Ma Xiao, the head of the accounting department (accounting officer) guarantee that the
financial statements in this semi-annual report are true, accurate and complete
V. The profit distribution plan or the plan for converting provident fund to share capital for the
reporting period adopted by the Board of Directors
None
VI. Risk related to forward-looking statements

√Applicable □ Not applicable
Forward-looking statements, including future plans and development strategies contained in the report,
do not constitute any commitment of the Company to investors. Investors should be reminded of the
investment risks.
VII. Statement on whether there is a situation that the controlling shareholder or other related
parties occupy funds for any non-operation purpose
None
VIII. Statement on whether there are any guarantees provided in violation of the prescribed
decision-making procedures
None
IX. Statement on whether there are more than half of the directors who are unable to guarantee
the authenticity, accuracy, and completeness of the semi-annual report disclosed by the
Company
None
2 / 262
X. Major risks warnings

The Company has provided a detailed description of the existing risk factors in this report. Please refer
to “(I) Possible risks”, “V. Other disclosures”, “Section III Management Discussion and Analysis” for
details.
XI. Others
□Applicable √Not applicable
3 / 262
Table of Contents
Section I Definitions........................................................................................................................... 5
Section II Company Overview and Major Financial Indicator ............................................................ 6
Section III Management Discussion and Analysis .............................................................................. 10
Section IV Corporate Governance ...................................................................................................... 34
Section V Environmental and Social Responsibility ......................................................................... 38
Section VI Major Matters.................................................................................................................... 57
Section VII Change in Shares and Information of Shareholders .......................................................... 74
Section VIII Preference Shares .............................................................................................................. 83
Section IX Bonds ................................................................................................................................ 84
Section X Financial Report ................................................................................................................ 92
Financial statements with the signatures and seals of the person in charge of
Directory of reference
the Company, the accounting principal, and the head of the accounting
documents
department (accounting officer)
Original copies of all corporate documents and announcements publicly
Directory of reference
disclosed on the websites designated by the CSRC during the reporting
documents
period.
4 / 262
Section I Definitions
Unless the context otherwise requires, these terms shall have the following meanings when used herein:
The Company, Company, or Huayou
Zhejiang Huayou Cobalt Co., Ltd.
Cobalt
Huayou Holding Huayou Holding Group Co., Ltd.
CONGO DONGFANG INTERNATIONAL MINING SAS,
CDM Company with the Chinese name “刚果东方国际矿业简易股份有限
公司”
LA MINIERE DE KASOMBO SAS, with the Chinese name
MIKAS Company
“卡松波矿业简易股份有限公司”
HUAYOU (HONGKONG) CO., LIMITED, with the
Huayou Hong Kong
Chinese name “华友（香港）有限公司”
ORIENT INTERNATIONAL MINERALS & RESOURCE
OIM Company (PROPRIETARY) LIMITED, with the Chinese name “东方
国际矿业有限公司”
Huayou Import & Export Zhejiang Huayou Import & Export Co., Ltd.
Huayou Quzhou Quzhou Huayou Cobalt New Materials Co., Ltd.
HUAYOU INTERNATIONAL MINING(HONGKONG)
Huayou Mining Hong Kong or
LIMITED, with the Chinese name “华友国际矿业（香港）
Huayou International
有限公司”
HUAYOU INTERNATIONAL MINING HOLDING
Huayou Mining Holding or Huayou
LIMITED, with the Chinese name “华友国际矿业控股有
International Holding
限公司”
Huayou International Cobalt (Hong Kong) Company
Huayou International Cobalt
Limited
Huayou New Energy Quzhou Huayou New Energy Technology (Quzhou) Co., Ltd.
Huayou Recycling Zhejiang Huayou Recycling Technology Co., Ltd.
Quzhou Huayou Resource Recycling Technology Company
Resource Recycling
Limited
Huayou New Energy Technology Zhejiang Huayou New Energy Technology Co., Ltd.
Jiangsu Huayou Jiangsu Huayou Energy Technology Co., Ltd.
Huayou Singapore HUAYOU RESOURCES PTE.LTD.
Shanghai Feicheng Shanghai Feicheng Metal Materials Co., Ltd.
Huajin Company Huajin New Energy Materials (Quzhou) Co., Ltd.
Huayou Puxiang Zhejiang Huayou Puxiang New Energy Materials Co., Ltd.
Leyou Company Leyou New Energy Materials (Wuxi) Co., Ltd.
Puhua Company Zhejiang Puhua New Energy Materials Co., Ltd
Huayue Company PT.HUAYUE NICKEL COBALT
Huake Company PT.HUAKE NICKEL INDONESIA
Huafei Company PT.HUAFEI NICKEL COBALT
Huashan Company PT.HUASHAN NICKEL COBALT
KNI Company PT KOLAKA NICKEL INDONESIA
Prospect Lithium PROSPECT LITHIUM ZIMBABWE (PVT) LTD
Tianjin B&M Tianjin B&M Science Technology Co., Ltd
Chengdu B&M Chengdu B&M Technology Co., Ltd
Guangxi B&M Guangxi B&M Technology Co., Ltd
Zhejiang B&M Zhejiang B&M Science and Technology Co., Ltd
Guangxi Lithium Industry Guangxi Huayou Lithium Industry Co., Ltd
GDR Global Depositary Receipts
5 / 262
Section II Company Overview and Major Financial Indicator

I. Company name
Full Chinese name 浙江华友钴业股份有限公司
Chinese name abbreviation 华友钴业
Full English name Zhejiang Huayou Cobalt Co., Ltd.
English name abbreviation Huayou Cobalt
Legal representative Chen Xuehua
II. Contact persons and their contact details

Representative of Securities
Secretary of the Board of Directors
Affairs
Name Li Rui Wang Guangpu
18 Wuzhen East Road, Tongxiang 18 Wuzhen East Road, Tongxiang
Contact address Economic Development Zone Phase II, Economic Development Zone
Zhejiang Province Phase II, Zhejiang Province
Telephone 0573-88589981 0573-88589981
Fax 0573-88585810 0573-88585810
E-mail [email protected] [email protected]
III. Change of company address

18 Wuzhen East Road, Tongxiang Economic Development
Registered address
Zone Phase II, Zhejiang Province
18 Wuzhen East Road, Tongxiang Economic Development
Office address
Zone Phase II, Zhejiang Province
Postal code of office address 314500
Website www.huayou.com
E-mail [email protected]
IV. Information disclosure and location change

Newspaper selected by the Company for China Securities News, Shanghai Securities Journal,
information disclosure Securities Times, Securities Daily
Website for publication of semi-annual reports www.sse.com.cn
Place where the semi-annual reports of the Office of the Securities Management Department of the
Company are available for inspection Company
V. Company stock
Stock abbreviation
Stock type Stock exchange Stock abbreviation Stock code
before change
Shanghai Stock
A shares 华友钴业 603799 None
Exchange
SIX Swiss Zhejiang Huayou
GDR HUAYO None
Exchange Cobalt Co., Ltd.
VI. Other relevant information

VII. Major accounting data and financial indicators of the Company

(I) Major accounting data
Monetary unit: Yuan Currency: RMB
6 / 262
Increase/decrease
The current period The same period last
Major accounting data compared with the same
(January to June) year
period last year (%)
Operating income 33,345,537,519.76 31,018,304,267.06 7.50
Net profit attributable to
shareholders of the listed 2,085,104,942.66 2,255,513,730.90 -7.56
company
shareholders of the listed
company after deducting 1,839,200,954.15 2,192,290,161.57 -16.11
non-recurring profits and
losses
Net cash flow from operating
1,794,476,677.55 -1,057,411,058.52 269.70
activities
Increase or decrease at the
End of the current end of the current period
End of last year
period compared with the end of
last year (%)
Net assets attributable to the
shareholders of the listed 28,630,994,949.14 25,893,158,131.43 10.57
company
Total assets 124,420,791,074.26 110,592,418,711.85 12.50
(II) Major financial indicators

The current
The same
period Increase/decrease compared with
Major financial indicators period last
(January to the same period last year (%)
year
June)
Basic earnings per share
1.32 1.41 -6.38
(RMB/share)
Diluted earnings per share
1.32 1.35 -2.22
(RMB/share)
Basic earnings per share after
deducting non-recurring gains and 1.16 1.37 -15.33
losses (RMB/share)
Weighted average return on net
7.63 10.53 -2.90
assets (%)
Weighted average return on net
assets after deducting non-recurring 6.73 10.24 -3.51
gains and losses (%)
Description of the Company’s major accounting data and financial indicators

VIII. Differences of accounting data under Chinese and overseas accounting standards
IX. Items and amounts of non-recurring gains and losses

√Applicable □Not applicable
Non-recurring gains and losses Amount Remark (if applicable)
Profit or loss from disposal of non-current assets -11,324,161.80
Tax refund or reduction approved beyond one’s authority,
or without formal approval documents, or of occasional
nature
Government subsidies included into the current profit or 157,469,972.63
7 / 262
loss (except for the government subsidies that are closely

related to the Company’s business and continuously
enjoyed in accordance with the government policies with
fixed or quantitative amount per certain standards)
Fund occupancy fees charged to non-financial enterprises
included in the current profit or loss
Income from disposing of subsidiaries, associates and
joint ventures whose investment costs at the time of
acquisition are lower than the fair value of their
identifiable net assets that the Company may obtain at the
time of disposal
Profit or loss from exchange of non-monetary assets
Profit or loss from entrusting others to invest or manage
assets
Provision for impairment of various assets accrued in
connection with force majeure, such as natural disasters
Profit or loss from debt restructuring
Enterprise restructuring costs, such as expenses for
employee re-settlement, consolidation costs, etc.
Gain or loss arising from transactions with significantly
unfair transaction prices that exceed fair value
Current net profit or loss of subsidiaries arising from
business combination under the common control from the
beginning of the period to the combination date
Profit or loss arising from contingencies unrelated to the
normal operation of the Company
In addition to the effective hedging business related to the
normal business of the Company, the profit or loss from
changes in fair value arising from held-for-trading
financial assets, derivative financial assets,
held-for-trading financial liabilities and derivative
154,889,082.99
financial liabilities, as well as the income from the
disposal of held-for-trading financial assets, derivative
financial assets, held-for-trading financial liabilities,
derivative financial liabilities and other creditors’ right
investments
Reversal of the provision for impairment of accounts
receivable under separate impairment test and the
provision for impairment of contract assets
Gain or loss from external entrusted loans
Gain or loss arising from changes in the fair value of
investment real estate that are subsequently measured
using the fair value model
Impact amount of one-time adjustment to current profit or
loss in accordance with tax, accounting, and other laws
and regulations on current profit or loss
Trustee fee income from entrusted operation
Non-operating income and expenses other than the said
-8,937,112.14
items
Other items of gains and losses complying with the
definition for non-recurring gains and losses
Less: impact amount of income tax 29,919,188.72
Impact amount of minority equity (after tax) 16,274,604.45
Total 245,903,988.51
Explain the reason if the investments Company classifies the non-recurring profits and losses items
determined by the Company in accordance with the definition thereof, as well as the non-recurring
profits and losses items listed, in the Explanatory Announcement No. 1 on Information Disclosure for
Companies Offering Their Securities to the Public - Non-recurring Profits and Losses into recurring
8 / 262
profits and losses items.

X. Others
9 / 262
Section III Management Discussion and Analysis
I. Overall situation of the Company’s industry and primary business during the reporting
period
(I) Main business conditions
The Company is mainly engaged in the R&D and production of new energy
lithium-ion battery materials and new cobalt materials products. It is a high-tech enterprise
with a vertically integrated business model from the development of nickel, cobalt and
lithium resources to the production of lithium-ion battery materials, and is committed to the
development of low-carbon and environment-friendly new energy lithium-ion batteries
materials.
After more than two decades of development and endeavors, the Company has secured
its supply of raw overseas, expanded its production and operation across China, and
marketed and sold its products globally. The Company's business model is underpinned by
its three major business segments, namely, new energy business, new material business and
resource business. The three major businesses have formed a vertically integrated business
model within the Company. At the same time, the Company is also planning its lithium-ion
battery recycling business, and is striving to create a kind of new energy lithium-ion battery
industry ecology from the development of nickel, cobalt and lithium resources, green
smelting and processing, production of ternary precursor and cathode material to the
recycling of resources.
(II) Business model
1. New energy business
The Company’s new energy business mainly focuses on the R&D, production, and
sale of lithium battery cathode materials, including ternary cathode materials and
lithium-cobalt oxide materials. The products are mainly used in the production of
lithium-ion batteries for electric vehicles,energy storage systems, consumer electronics, etc.
The cathode materials products are mainly produced by the processes of mixing,
high-temperature sintering, comminution and sieving iron removal, and so on. Raw
materials required for the production of cathode materials are mainly sourced from the
internal supply of subsidiaries and market-oriented procurement. Lithium-ion battery
manufacturers, who mainly adopt the direct selling model, are the customers of cathode
materials. With respect to sales pricing, the Company mainly conducts comprehensive
10 / 262
pricing based on the technical content of products and market supply and demand, as well
as the market prices of nickel, cobalt, manganese, and lithium metals.
Adhering to the positioning of “rapid development, making a breakthrough in
high-end products, benefit-oriented, obtaining the leading strategic position of new energy
lithium-ion battery materials” and the competitive strategy of “product leadership and cost
leadership”, the new energy business, supported by scientific and technological innovation,
has achieved the industry-leading level in terms of production capacity, product quality and
product innovations by continuously improving the production organization capacity and
product quality control level. Cathode materials for lithium-ion battery materials have been
widely applied in the international high-end brand automobile industry chain, international
energy storage market, and consumer electronics market. The Company’s ternary cathode
materials have been supplied in large quantities to global head power battery customers
such as CATL and LG Energy Solution, forming a rich industrial ecological chain, and are
widely used in domestic and international well-knownelectric vehicles brands. The
Company’s lithium-cobalt oxide are gradually upgraded to rate type and high voltage, and
have fully entered the global mainstream consumer electronics supply chain, covering
terminal mobile phone factories such as Samsung, Apple, Huawei, Xiaomi, VIVO, etc. As
the strategic focus of the Company’s transition to the field of new energy lithium-ion
battery materials, the Company’s new energy business will play a leading role in the
Company’s future industrial development.
2. New material business

The Company’s new material business primarily includes the research, development,
production, and sale of ternary precursor materials, cobalt, nickel and lithium new materials
products, which are primarily used in cathode materials for new energy vehicle batteries
and consumer electronics. The ternary precursor products are mainly produced by synthesis,
deterging, dehydration, and other processes. The raw materials needed for the production of
ternary precursors are mainly supplied internally and supplemented by outsourcing.
Lithium-ion battery cathode material manufacturers, which mainly adopt the direct selling
model, are the main customers of the ternary precursors. With respect to sales pricing, the
Company mainly conducts comprehensive pricing based on the technical content of
products and market supply and demand, as well as the market prices of nickel, cobalt, and
manganese metals. The price for the procurement of cobalt and nickel raw materials is
determined based on a certain discount to the market transaction price of such metals. The
11 / 262
cobalt products are sold basically under a direct sales model in the domestic and European
markets, and under a distribution mode in the markets of Japan and the United States, and
under both the direct sales model and distribution mode in the Korean market. Nickel
products are sold mainly under a direct sales model. Sales prices are determined by the
Company based on supply and demand in various markets, as well as international and
domestic market prices for metals such as cobalt and nickel.
The new material business complements and serves as the backbone of the
Company'svertically integrated business model as it bridges the Company's resources
business and new energy business by converting upstream nickel and cobalt resources into
new energy materials . In accordance with the positioning of “creating an industry
benchmark with resource conservation, environmental friendliness, and leading efficiency”,
the new material business has become an industry benchmark with advanced and green
manufacturing, and leading efficiency by continuously improving its scientific and
technological innovation, product R&D, intelligent manufacturing capability and cost
control level. The Company’s ternary precursor products have entered into the core
industrial chains of global head power batteries, such as LGES, SK, CATL, and BYD, and
have begun to be widely applied to high-end electric vehicles in Europe and the United
States, such as Volkswagen MEB, Renault Nissan Group, Volvo and Jaguar Land Rover.
The Company has also signed a supply framework agreement with Tesla to enable the
ternary precursor products to enter into Tesla’s core supply chain. The Company's new
material business further consolidates its leading position in the industry, enabling the
Company to fully enjoy the benefit of synergy and cost advantages. The Company offers
mainstream products which suit the needs of mainstream customers in such markets. The
rapid growth of its ternary precursor business makes it a leading supplier in the industry
and ensures a stable supply of raw materials for its new energy business. The Company's
new material business also provides highly competitive quality products, laying a solid
foundation for its business expansion into the new energy lithium-ion battery material
industry.
3. Resources business
The Company’s resources business consists primarily of the extraction, selection, and
primary processing of non-ferrous metals such as cobalt, nickel, lithium, and copper. The
main products of the cobalt and copper business are crude cobalt hydroxide and electrolytic
copper. At present, the African resource sector has formed a business model that is
12 / 262
guaranteed by its own mines and supplemented by sourcing from local mines and mining
companies in D. R. Congo. After the cobalt and copper ores are mined, copper-cobalt
concentrates are produced by mineral processing, and crude cobalt hydroxide and
electrolytic copper products are produced by HPAL. Copper-cobaltore materials are
supplied from the Company's own mines and purchased from local mining companies, and
the purchase price of cobalt-containing raw materials is determined based on a certain
discount from the MB price. The purchase price of copper raw materials is also mainly
linked to the price of copper in the international market. The crude cobalt hydroxide
products are primarily used for the production of refined cobalt products for domestic new
material business. The electrolytic copper products are generally sold to international
commodity trading houses and are primarily priced based on the LME copper price. The
main products of the nickel business are crude nickel hydroxide, high-grade matte nickel,
and other nickel intermediates. The supply of nickel ore materials is primarily secured
through mines in which the Company has non-controlling interests and long-term supply
cooperation agreements, supplemented by market-based sourcing. Nickel intermediate
products are mainly used as raw materials for the domestic new material business and are
mainly priced based on international and domestic public market prices. The lithium
business is conducted through the mining and beneficiation of the Company's own mines in
Zimbabwe, with the main products being spodumene concentrates and petalite concentrates.
Spodumene concentrates and petalite concentrates are mainly used for the smelting of
lithium salts in the domestic new material business.
The resource business is the source of the Company’s vertically integrated business
model. Through years of resource development in Africa, the Company has established a
cobalt copper resource guarantee system integrating mining, beneficiation, and smelting in
D. R. Congo. It has invested in the construction of the Arcadia lithium mine project in
Zimbabwe, providing domestic manufacturing platforms with low-cost competitive
advantages and a stable and reliable cobalt and lithium raw material guarantee. In 2018, the
Company started the development of laterite nickel resources in Indonesia. In recent years,
the development of nickel resources in Indonesia has been further promoted and achieved
leapfrog development. Huayue Company’s HPAL project has maintained stable and
overproduction. Huake Company’s high-grade matte nickel project basically reached its
designed capacity. Huafei Company’s HPAL project was put into trial operation. The
preliminary work for Huashan Company’s 120,000 ton laterite nickel HPAL project and
13 / 262
Pomalaa HPAL project has been carried out in an orderly manner. The strategic
cooperation with Volkswagen, Ford Motor, PT Vale Indonesia, and Tsingshan Holding
Group on the development of nickel and cobalt resources in Indonesia has been
continuously promoted. With the further development of the nickel and cobalt resource
distribution in Indonesia, these projects will provide nickel and cobalt raw materials with
more cost-competitive advantages for the development of the Company’s high-nickel
lithium-ion battery materials, and further consolidate the competitive advantages of the
vertically integrated business model. The Company’s low-cost, large-scale, stable and
reliable resource guarantee has laid a solid raw material foundation for the Company to
become the industry leader in the new energy lithium-ion battery material industry.
In addition, the Company actively planned the lithium battery recycling business, and
its subsidiaries, Huayou New Energy Technology (Quzhou) Co., Ltd., Quzhou Huayou
Resource Recycling Technology Company Limited, and Jiangsu Huayou Energy
Technology Co., Ltd., were respectively included in the first, second and fourth batch of the
list of enterprises meeting the Requirements of Industry Standards for the Comprehensive
Utilization of Waste Power Batteries for New Energy Vehicles issued by the Ministry of
Industry and Information Technology of the People’s Republic of China. The Company
innovated its business models through the establishment of a recycling network system,
ladder-style utilization and development, resource utilization, waste material exchange, and
battery maintenance and remanufacturing, and established cooperation relationship with
mainstream automobile production enterprises and battery leaders both in China and abroad
such as BMW, Volkswagen, Toyota, LG New Energy, FAW, Chang'an, GAC, SAIC, NIO,
and Li Auto, and provided customers with global, harmless and sustainable waste battery
solutions. With the development of business, the Company is building a kind of new energy
lithium-ion battery industry ecology from the development of nickel, cobalt and lithium
resources, green smelting and processing, production of ternary precursor and cathode
material to the recycling of resources recycling.
In its development strategic plan, the Company proposes to adhere to the development
of the new energy lithium-ion battery material industry, focus on the overall idea of
“controlling resources, expanding the market and enhancing capabilities”, comprehensively
implement the strategy of “lithium-ion battery materials and cobalt new materials, and
high-end products, industrial integration, and internationalization of operations”, and strive
to become a global leader in the new energy lithium-ion battery material industry.
14 / 262
(III) Industry situation

The development of new energy vehicles carries an important mission for addressing
climate change, reshaping the energy pattern and building an ecological civilization. In the
past few years, under the dual promotion of policy and market, China’s new energy
vehicles had continued to grow rapidly, with the market penetration rate reaching 25.6% in
2022 and the production and sales being the first for eight consecutive years in the world.
The new energy vehicle industry in China is moving from the stage of rapid development to
a new stage of large-scale and global high-quality development, and the global new energy
vehicle market is also booming with the support of policies.
During the reporting period, in order to consolidate and expand the development
advantages of new energy vehicles, China continued to introduce policies and measures to
promote the high-quality development of the new energy vehicle industry. At a meeting of
the State Council in June, it was proposed to continue the purchase tax reduction and
exemption policy for new energy vehicles to further stabilize market expectations and
maintain policy intensity. The Ministry of Commerce launched the Auto Festival “City
Linkage” and the action of new energy vehicles to the countryside “Counties and Towns”
to further promote vehicle consumption and release consumption potential. According to
the data from CAAM, in the first half of 2023, the production and sales of new energy
vehicles in China were 3.788 million and 3.747 million respectively, an increase of 42.4%
and 44.1% year-on-year respectively, with the market penetration rate being 28.3%.
However, due to the increasing production and sales base, the growth rate of domestic new
energy vehicles in the first half of the year was lower than that for the same period last year.
From a global perspective, the certainty of the new energy vehicle industry has also
continued to be strengthened. In February 2023, the European Parliament officially adopted
the “Agreement for Zero Emissions of New Fuel Cars and Minivans in Europe in 2035”; 27
EU member states have introduced corresponding policies to guide the development of new
energy vehicles. In June 2023, US President Joe Biden said he planned to invest USD 2
billion from the Inflation Reduction Act adopted last year to accelerate domestic electric
vehicle manufacturing. According to the data from Marklines, the global sales volume of
new energy vehicles in the first half of 2023 was about 5.967 million, an increase of 42.8%
year-on-year.
The broad market prospect of new energy vehicles has brought huge business
opportunities for the whole industry chain of lithium-ion battery materials. Upstream and
15 / 262
downstream enterprises in the industry chain have announced the expansion of production
capacity to cope with the growing market demand. During the reporting period, with the
slowdown in the growth rate of new energy vehicles and the gradual release of built
capacity, the supply-demand relationship between electrical batteries and lithium-ion
battery materials reversed, and there was a phased and structural excess capacity. The data
from GGII shows that in the first half of 2023, the market shipment of ternary cathode
materials in China was 303,000 tons, an increase of only 6.3% year-on-year, but the market
demand for high-nickel ternary materials is still increasing at a high rate due to their
significant advantages in energy density, light weight and low temperature performance. In
the first half of the year, the market shipment of high-nickel ternary cathode materials in
China was 154,000 tons, accounting for 50.8% of that of ternary cathode materials. At the
same time, under the high-nickel trend of ternary materials, the demand for nickel for
batteries has been growing rapidly. According to the data from SMM, in the first half of
2023, domestic nickel sulfate production was about 195,400 metal tons, an increase of
34.76% year-on-year. In the future, under the combined influence of factors such as the
rapid development of high-nickel ternary materials and the large-scale promotion and
application of 4680 battery technology, the demand for nickel sulfate and upstream nickel
raw materials is expected to maintain rapid growth.
During the reporting period, the overall sales of high-end digital consumer products
were weak, but with the economy entering the process of accelerating recovery and
restarting growth, consumer electronics demand has ushered in an inflection point.
According to data from CAICT and Canalys, the total shipment of mobile phones in the
domestic market from January to June 2023 was 130 million, down 4.8% year-on-year; the
shipment of PCs in the world in the first half of 2023 was 116 million, down 38.3%
year-on-year, but the decline in the second quarter of 2023 has slowed down, and the
shipment increased by 11.9% compared with that in the first quarter, indicating that the
market recovery is expected to accelerate in the second half of this year. Although
consumer electronic products have entered the mature stage, the growth rate of the lithium
battery market demand has slowed down, but because the market size of consumer
electronic products is large and the replacement is fast, it will still maintain a stable market
demand and occupy a considerable market share in lithium battery consumption. During the
reporting period, the new generation of mobile communication 5G developed rapidly, and
the penetration rate of 5G mobile phones continued to increase. According to the data from
16 / 262
CAICT, the shipment of 5G mobile phones in the domestic market from January to June
2023 was 102 million, accounting for 78.9% of that of mobile phones for the same period.
The promotion of 5G technology will further increase the demand for battery capacity of
mobile phones, thus driving the market demand for cobalt-containing lithium batteries. In
the future, 5G, 6G, and AI technologies will be more widely used in the interconnection
and intelligence of all kinds of terminals, with huge development potential, and such
terminal products will maintain rapid growth in the market demand for lithium battery
consumption.
In summary, in the context of the great development of the new energy lithium battery
industry and the intelligent terminal industry represented by 5G, the new energy lithium-ion
battery material industry and cobalt and nickel new material industry engaged in by the
Company are emerging industries supported by the national development strategy and
industrial policy, and the products made by the Company are the core materials necessary
for new energy materials such as ternary electircal batteries. The future of the industry in
which the company is engaged is very bright, and management is very confident about it.
The Company will be committed to continuously deepening the layout of integrated
industry chain, enhancing the core competitiveness of integration, creating value for global
customers, and contributing to the lithium battery industry.
II. Core competence analysis during the reporting period

There were no significant changes in the Company’s core competitiveness during the
reporting period. Please refer to "Analysis of Core Competitiveness during the Reporting
Period", "Section III Management Discussion and Analysis" of the 2022 annual report for
details.
III. Business discussion and analysis

During the reporting period, in the face of the industry environment where the growth
rate of new energy vehicles was slowing down and the competition in lithium-ion battery
materials was intensifying, the Company firmly grasped the characteristics of the stage,
seized the development opportunities, firmly implemented the competitive strategy “two
leading” and the business strategy “to be among the best”, implemented the business idea
of comprehensively planning, strengthening security, optimizing the structure and
controlling risks, strengthened the overall planning for production, supply and market,
17 / 262
strengthened the matching of resources, production capacity and demand, consolidated the
business foundation, improved the quality of development, enhanced innovation ability,
strived for excellence and improved quality, so that the market share of main products
further increased, good business performance was achieved, and a strong development
trend was maintained, which laid a solid foundation for the completion of the annual
targets.
During the reporting period, the Company mainly completed the following tasks based
on the business plan formulated at the beginning of the year:
1. Prudent operation, main product growth against the trend
During the reporting period, in the face of the rapidly reversing relationship between
supply and demand, the Company strengthened the overall planning for production, supply
and market, strengthened market analysis and judgment, business activity analysis and
integrated industrial cooperation, deeply integrated into the global new energy vehicle
supply system, vigorously expanded the international lithium-ion battery materials market,
strengthened the matching of resources, production capacity and demand, increased load,
stabilized production line, and operated in a prudent manner, achieving steady growth in
shipments of main products. The shipment of cathode materials was about 46,000 tons,
where the total shipment of ternary cathode materials was 40,900 tons, an increase of about
23.11% year-on-year; the shipment of high-nickel ternary cathode materials (8-series and
9-series or above) was about 33,900 tons, accounting for about 82.81% of the total
shipment of ternary materials, where the shipment of ultra-high-nickel cathode materials
(9-series or above) was 17,600 tons, an increase of 59.70 % year-on-year; the shipment of
lithium-cobalt oxide was 5,200 tons, an increase of 1.18% year-on-year; the shipment of
ternary precursors was about 52,500 tons (including those supplied internally), an increase
of 42.40% year-on-year; the shipment of cobalt products was about 20,500 tons (including
those processed as entrusted and supplied internally), an increase of 10.96% year-on-year;
the shipment of nickel products was about 53,700 tons (including those processed as
entrusted and supplied internally), an increase of 236.58% year-on-year, and the
Company’s electrolytic nickel products were successfully registered as delivery brand on
Shanghai Futures Exchange and London Metal Exchange. At the same time, the Company
continued to optimize the customer structure, signed a ternary precursor supply agreement
with POSCO Chemical and Puhua Company, and signed the “Term Sheet of PCAM
Supply” with Ford Motor. Its main products have covered the world’s top ten enterprises in
18 / 262
terms of installed capacity of electrical batteries such as CATL, BYD, LGES, and CALB,
and have been applied to Tesla, Volvo, Land Rover, Jaguar and other high-end electric
vehicles. The Company’s market position has steadily improved.
2. Open development, further progress in global layout
During the reporting period, the Company, based on the principle of value creation
and benefit sharing, adhered to the open concept of “cooperation and joint development,
common benefit for future”, continued to promote openness in all aspects of the lithium-ion
battery material industry chain such as resource development, material manufacturing and
recycling, and deepened the cooperative relationship with customers, suppliers and other
partners to promote high-quality development with a high level of openness and achieve
common benefit for future through cooperation and joint development. In January, the
Company signed a long-term ternary precursor supply agreement with POSCO Chemical
and Puhua Company to further strengthen the Company’s competitiveness in the field of
new energy lithium-ion battery materials. In March, on the basis of previous cooperation,
the Company signed relevant agreements with Vale Indonesia and Ford Motor to jointly
develop Pomalaa HPAL project. In April, it signed an investment memorandum of
understanding with LG Chemical and other companies, planning to invest in the
establishment of a battery material production plant in South Korea. In May, it signed an
investment memorandum of understanding with POSCO FUTURE M and other companies,
planning to invest in the establishment of a battery material nickel sulfate refining and
precursor production plant in South Korea. In June, it started the investment in the
construction of the Hungary B&M’s project of ternary cathode materials for high-nickel
electrical batteries in Hungary. In July, the joint venture POSCO HY CLEAN METAL was
successfully completed. In August, it signed a joint venture agreement with LG New
Energy to establish two joint ventures Pretreatment and Recycled Metallurgy in Nanjing
and Quzhou respectively; it held the delivery ceremony of “Huachen BMW new energy
vehicles produced with Huayou recycled lithium-ion battery materials” with Huachen
BMW to jointly build a closed-loop recycling system for the whole life cycle of lithium
batteries. Under the background of the deep adjustment of global industrial division of
labor, the introduction of overseas industry protection policies, and the increasingly fierce
competition for supply chain dominance, the Company actively promoted the open and
international cooperation in industry chain and the global layout, built the business pattern
of overseas resources, domestic manufacturing, and global market, and deeply integrated
19 / 262
with the world’s new energy vehicle industry, becoming an important force to maintain
industrial stability and smooth supply.
3. Innovation-driven, steady improvement in technology
During the reporting period, the Company focused on the production and operation
and the competitive strategy of “product leadership and cost leadership”, focused on the
mainstream market, mainstream customers and mainstream products, and strengthened the
application of new technologies, the research on new processes and the development of
new products to support the rapid development of the Company with scientific and
technological innovation such as new technologies, new processes and new products. The
Company’s technology center was identified as the national enterprise technology center.
The Company was selected as one of the top 100 enterprises in R&D investment among
Zhejiang listed companies. Chengdu B&M Testing Center Laboratory passed the site
assessment by China National Accreditation Service for Conformity Assessment. The
Company and Huayou New Energy Quzhou’s Zhejiang Postdoctoral Workstation was
upgraded to national postdoctoral workstation. Jiangsu Huayou has been recognized as a
high-tech enterprise. The Company’s invention patent “A nickel-cobalt-manganese
hydroxide with special micro-nano structure and its preparation method” won the China
Patent Excellence Award, indicating that the Company’s independent innovation ability
was further enhanced. During the reporting period, the Company vigorously promoted IPD
product research and development, improved the technical capabilities in new product
development, competed for supply and orders, and expanded the market, with a number of
new precursor products transferred to mass production. The high-nickel ternary precursors
were successfully applied to a new generation of high-nickel single crystal cathode
materials for batteries and put into mass production, a number of sodium electric precursors
were developed, and high-voltage cobalt tetraoxide 4.50V and 4.53V new products were
developed. Cathode material products were developed for important customers at home and
abroad, and a number of new products were put into small experiment, pilot scale test and
mass production. A number of 4.48V, 4.50V and 4.53V new tablet and mobile phone
products in which lithium-cobalt oxide was used are under pilot scale test and mass
production. The development and mass production of new products have further enhanced
the Company’s competitive advantage of “product leadership” and provided strong support
for expanding the market and increasing orders.
4. Coordinated construction, orderly progress in key projects
20 / 262
During the reporting period, the Company closely grasped the characteristics of the
industry, combined with the actual situation of the enterprise, coordinated production
capacity planning, project construction and park implementation, and promoted key
projects at home and abroad in an orderly manner as planned, further enhancing the
Company’s development momentum. Huafei Company 120,000 tons nickel metal HPAL
project was put into trial production in June. Huake 45,000 tons high-nickel matte
pyrometallurgy project basically reached design capacity. SCM mineral processing plant
and Huayue long distance pipeline were advanced in an orderly manner. Preparations for
Huashan 120,000 tons nickel metal HPAL project and Pomalaa HPAL project were made
in an orderly manner. The Arcadia lithium mine project in Zimbabwe in the African region
was rapidly constructed in accordance with the principle of early completion, early
production and early creation of benefits, and was officially put into trial production at the
end of March this year, with the first batch of products made successfully. Guangxi
battery-grade lithium salt project with an annual output of 50,000 tons was put into trial
production in June, and the first batch of lithium salt products was offline in July. The
preliminary work of Hungary ternary cathode material project in the European quarter
progressed smoothly. Nickel sulfate, electrolytic nickel, precursor, cathode materials and
other projects in Tongxiang, Quzhou, Guangxi and other places were constructed according
to plan, and some projects were put into production line commissioning or commissioning
trial production. In addition, the Company also coordinated the construction of parks in
Indonesia, Guangxi, Zhejiang, Sichuan and other places in accordance with the principle of
planning first, enterprise cluster and project cluster, integrated and park-based, and
six-integration, and continued to build an integrated advanced manufacturing base for
lithium-ion battery materials that is internationally competitive.
5. Green development, an ESG benchmark in the industry
During the reporting period, the Company vigorously promoted green manufacturing,
actively fulfilled social responsibilities, further improved the level of ESG management,
and took the road of green and sustainable development. The Company was selected as
Forbes 2022 TOP50 Sustainable Industrial Enterprises, 2023 ESG Inspiration Cases and
Hurun China’s Top 100 Private Enterprises for Sustainable Development. Huayou New
Energy Quzhou won the title of national green factory, was rated as a water-saving
enterprise in Zhejiang Province, and passed the “carbon neutral” audit and certification by
SGS, the international authoritative testing and certification body, becoming the fourth
21 / 262
“zero carbon factory” of the Company after Chengdu B&M, Resource Recycling and
Jiangsu Huayou. Resource Recycling was awarded green low-carbon factory in Zhejiang
Province and carbon neutral certificate issued by SGS again. The lithium
nickelate-cobaltate-manganate NCM523 independently developed by Chengdu B&M was
included in the national green design product list. Huayou Recycling and Volkswagen
Group (China) achieved cooperation results in the comprehensive utilization of
decommissioned electrical batteries and successfully transferred cooperation products;
cascade products and technical solutions were provided to Huachen BMW to realize green
electricity recycling. During the reporting period, the Company further strengthened ESG
management and comprehensively communicated with stakeholders based on the principles
of integrity, equality and transparency, identified major ESG issues related to the business,
made policy commitments and determined goals, carried out effective risk management by
formulating and implementing comprehensive ESG policies and management systems, and
thus further improved ESG management capabilities and levels. In addition, the company
continued to carry out integrity and and rule of law education, made donations to the
earthquake-hit areas in Indonesia to support post-disaster reconstruction. Prospect Lithium
sponsored Zimbabwe’s National Independence Day event. Quzhou Industrial Park carried
out unpaid blood donation activities to dedicate the love of Huayou people with practical
actions.
6. Strong foundation, continuous improvement in basic management
During the reporting period, the Company implemented the management philosophy
of specialization, refinement and management optimization, and continuously consolidated
the management foundation and improved the management quality. In terms of cost
reduction and efficiency improvement, the Company comprehensively carried out activities
of increasing, saving and decreasing, established a management office and an expert review
committee for increasing, saving and decreasing, and gradually established a management
system for increasing, saving and decreasing. In terms of financial management, the
Company optimized the financial management system, divided independent accounting
units, and consolidated the responsibilities of the business entities to make independent
accounting truthful and accurate. In terms of safety and environmental protection, the
Company always adhered to the concept of “safety and environmental protection is the
most important” to further improve the safety management system, strengthen the
construction of the safety and environmental protection team, and improve the management
22 / 262
level of safety and environmental protection. In terms of compliance control, the Company
continued to improve the level of business policies and compliance capabilities in customs,
taxation, import and export, processing trade, etc., established a contract management
platform, strengthened data security compliance, strengthened business compliance audits,
promoted the construction of compliance management system, and comprehensively
improved the Company’s compliance operation level. In terms of intelligent manufacturing,
the Company carried out information construction such as digital operation platforms, SAP
system reconstruction, and safety and environmental management systems. A batch of
intelligent manufacturing projects such as intelligent control platforms, intelligent logistics
vehicle management systems, and data collection and production monitoring systems were
carried out in an orderly manner. In terms of team building, the Company implemented the
management principle of “three unification”, and enhanced the team’s cultural leadership,
concept identification and mission responsibility to gather striving force for Huayou cause.
7. Integration of industry and finance, new driving force from cross-border
financing
During the reporting period, the Company continued to adhere to the development
strategy of integrating industry and finance, closely followed the time window of the
capital market, obtained the approval of the China Securities Regulatory Commission on
the Company’s application for issuing GDRs and listing on the SIX Swiss Exchange at the
end of March, and successfully completed the issuance GDRs in early July. The raised
funds (i.e., USD 583 million) were mainly used for the acquisition, development and
operation of upstream resources, expansion of the Company's production capacity of new
energy battery materials, both in domestic and overseas markets. The successful issuance of
the GDRs further broadens the Company’s financing channels, optimizes the Company’s
shareholder structure, enhances the Company’s international influence, and plays an
important role in promoting the development of the Company’s international management
strategy. During the reporting period, the Company also continued to strengthen the linkage
between banks and enterprises, completed the formation of a RMB8.4 billion syndicate for
Huafei’s HPAL project, and completed the first withdrawal in July. The Company achieved
rolling issuance of SCPs with advantageous prices. The successful implementation of the
above financing projects and the in-depth promotion of bank-enterprise cooperation have
provided a solid financial guarantee for the high-quality development of the Company.
23 / 262
Major changes in the Company’s business during the reporting period, and events occurring
during the reporting period that have a significant impact on the Company’s business and are
expected to have a significant impact in the future
IV. Main operation status during the reporting period

(I) Analysis of primary business
1. Analysis of changes in relevant items of the financial statements
Item Amount in the current Amount in the same
Change ratio (%)
period period of last year
Operating income 33,345,537,519.76 31,018,304,267.06 7.50
Operating costs 28,372,311,948.40 25,057,734,232.15 13.23
Selling and distribution expenses 64,306,725.80 33,257,395.17 93.36
General and administrative
1,115,686,302.41 760,962,088.23 46.62
expenses
Financial expenses 538,714,362.86 352,444,119.80 52.85
R&D expenses 759,738,617.49 839,734,971.25 -9.53
1,794,476,677.55 -1,057,411,058.52 269.70
activities
Net cash flow from investing
-8,937,502,406.53 -12,074,683,344.50 25.98
activities
Net cash flow from financing
7,805,047,664.23 19,454,262,397.39 -59.88
activities
Taxes and surcharges 220,240,292.44 285,398,869.80 -22.83
Investment income 788,520,751.65 570,759,901.75 38.15
Income from changes in fair value 131,980,619.08 -96,073,107.00 237.38
Loss from credit impairment -71,078,135.82 -218,340,909.98 -67.45
Loss from assets impairment -19,818,834.87 -537,000,710.94 -96.31
Income tax expenses 289,596,293.99 538,663,395.17 -46.24
Reasons for changes in operating income: Mainly due toan increase in the amount of operating income caused
by the increase in products’ sales volume
Reasons for changes in operating costs: Mainly due to an increase in the amount of operating costs caused by
the increase in products’ sales volume
Reasons for changes in selling and distribution expenses: Mainly due to an increase in salaries and related
expenses caused by business expansion
Reasons for changes in general and administrative expenses: Mainly due to an increase in employee salaries,
share-based payment expenses, etc. caused by business expansion
Reasons for changes in financial expenses: Mainly due to an increase in the interests and handling charges in
the current period
Reasons for changes in R&D expenses: Mainly due to a decrease in the cost of materials consumed in
research and development caused by the decrease in raw material prices
Reasons for changes in net cash flow from operating activities: Mainly due to a decrease in the cash occupied
by inventoried in the current period
Reasons for changes in net cash flow from investing activities: Mainly due to a decrease in the cash paid for
the acquisition of subsidiaries in the current period
Reasons for changes in net cash flow from financing activities: Mainly due to a decrease in cash received
from borrowings in the current period
Reasons for changes in taxes and surcharges: Mainly due to a decrease in mineral tax in the current period
Reasons for changes in investment income: Mainly due to an increase in the income from long-term equity
investments calculated under the equity method
Reasons for changes in income from changes in fair value: Mainly due to the floating profit caused by
forward future exchange contracts directly related to production and operation
Reasons for changes in loss from credit impairment: Mainly due to the decrease in the provision for bad debts
of accounts receivable in the current period compared to the same period last year
Reasons for changes in loss from assets impairment: Mainly due to a decrease in the provision for inventory
impairment in the current period
Reasons for changes in income tax expenses: Mainly due to an increase in the proportion of profits
24 / 262
contributed by low tax rate entities
2. Detailed description of major changes in the Company’s business type, profit composition, or
profit source during the current period
(II) Significant changes in profits resulting from non-primary business

(III) Analysis of assets and liabilities

1. Assets and liabilities conditions
Monetary unit: Yuan
Proportio
Amount as at Proportion Amount as at the Proportion
n in the Detailed
Item the end of the in the total end of the of change
total description
current period assets (%) previous year (%)
assets (%)
Mainly due to
the floating
profit formed by
the Company’s
Derivative
922,943,639.96 0.74 608,711,611.68 0.55 51.62 position in
financial assets
nickel futures
contracts at the
end of the
period
Mainly due to
an increase in
Construction in 23,965,567,757. new projects
19.26 14,281,929,827.36 12.91 67.80
progress 69 and investments
in ongoing
projects
Mainly due to
Held-for-trading an increase in
financial 82,840,808.91 0.07 40,024,798.40 0.04 106.97 derivative
liabilities financial
liabilities
Refund the
previous equity
Advance from
0.00 0.00 492,117,670.03 0.44 -100.00 advance
customers
payment in the
current period
Mainly due to
the increase in
Other
1,493,056,438.3 translation
comprehensive 1.20 776,405,562.87 0.70 92.30
4 differences in
income
foreign currency
statements
Other information
None
2. Overseas assets
25 / 262
(1) Asset size

Including: overseas assets 51,640,766,499.88 (Monetary unit: Yuan Currency: RMB), accounting for
41.50% of the total assets.
(2) Explanation for relatively high proportion of overseas assets

Other information
None
3. Restriction of major assets as of the end of the reporting period

Item Ending book value Reason for restriction
The RMB 5,774,551,004.71 is other cash and bank balances,

including the bank acceptance deposit of RMB
3,736,964,573.19, letter of credit deposit of RMB
Cash and bank
5,774,551,004.71 594,226,255.96, letter of guarantee deposit of RMB
balances
6,052,500.00, loan deposit of RMB 1,187,604,570.24,
forward foreign exchange settlement deposit of RMB
23,943,279.13, and other deposits of RMB 10,270,826.19.
Held-for-trading
207,705,323.09 Being used as pledge guarantee for bank financing
financial assets
Receivables
financing
Being used as pledge guarantees for financing of financial
Inventories 426,352,239.19 institutions and inventory corresponding to after-sales
repurchase
Being used as mortgage guarantees for bank financing and
Fixed assets 13,716,062,708.72
fixed assets corresponding to after-sales leaseback
Construction in
4,494,031,887.05 construction in progress corresponding to after-sales
progress
leaseback
Intangible
283,450,947.97 Being used as mortgage guarantee for bank financing
assets
Total 25,409,739,010.95
4. Other information
□Applicable√Not applicable
(IV) Analysis of investments

1. Overall analysis of equity investments
1. On January 5, 2023, the General Manager’s Office Meeting of the Company decided to approve the
joint establishment of Huaxiang Refining (Indonesia) Co., Ltd. with a registered capital of USD 1
million by wholly-owned subsidiaries Huayao International Investment Co., Ltd. and LINDO
Investment PTE. Ltd. in Indonesia. After the establishment, the Company will hold 98% equity in
Huaxiang Refining (Indonesia) Co., Ltd.
2. On January 10, 2023, the General Manager’s Office Meeting of the Company decided to approve the
joint establishment of Huali Nickel Industry (Indonesia) Co., Ltd. with a registered capital of USD 1
million by wholly-owned subsidiaries Huabin (Hong Kong) Co., Ltd. and Huaqun (Hong Kong) Co., Ltd.
in Indonesia. After the establishment, the Company will hold 100% equity in Huali Nickel Industry
(Indonesia) Co., Ltd.
26 / 262
3. On February 8, 2023, the General Manager’s Office Meeting of the Company decided to approve the
joint establishment of Sulawesi Manganese Recycling Co., Ltd. with a registered capital of USD 1
million by wholly-owned subsidiaries Huayao International Investment Co., Ltd. and LINDO
Investment PTE. Ltd. in Indonesia. After the establishment, the Company will hold 98% equity in
Sulawesi Manganese Recycling Co., Ltd.
4. On March 10, 2023, the General Manager’s Office Meeting of the Company decided to approve the
joint establishment of Huayou International Investment Co., Ltd. with a registered capital of USD 1
million by Huayou International and Zhejiang Youshan New Materials Co., Ltd. in Singapore. After the
establishment, the Company will hold 65% equity in Huayou International Investment Co., Ltd.
exercise of Askari Company’s options by its wholly-owned subsidiary Huayou International Resources
(Hong Kong) Co., Ltd. at an exercise price of AUD 0.25 per share, totaling AUD 2475000. After the
completion of the subscription, the Company will hold 6.03% equity in Askari Company.
joint establishment of Jintang B&M Technology Co., Ltd. with a registered capital of RMB 1.2 billion
by the controlling subsidiaries Chengdu B&M and Chengdu Major Industrialization Project (Phase I)
Equity Investment Fund Co., Ltd. and Jintang County Zhijin New Materials Technology Partnership
Enterprise (Limited Partnership). After the establishment, Chengdu B&M will hold 22.5% equity in
Jintang B&M Technology Co., Ltd.
7. On May 7, 2023, the General Manager’s Office Meeting of the Company decided to approve the
transfer of 100% equity in Guangxi Huayou Resource Recycling Technology Co., Ltd. to Zhejiang
Youshan New Materials Co., Ltd. by the wholly-owned subsidiary Huayou Recycling at the
consideration of RMB 0.
8. On June 21, 2023, the General Manager’s Office Meeting of the Company decided to approve to
establish Shanghai Huayou Jintian Enterprise Management Co., Ltd. with a registered capital of RMB
10 million. After the establishment, the Company will hold 100% equity in Shanghai Huayou Jintian
Enterprise Management Co., Ltd.
9. On June 30, 2023, the General Manager’s Office Meeting of the Company decided to: agree to the
Company’s acquisition of the contractual status, rights and obligations under the New Share
Subscription Contract signed between Tianjin B&M Science Technology Co., Ltd. and LGBCM Co.,
Ltd. (that is, the Company has the right to subscribe for the ordinary shares issued by LGBCM Co., Ltd.,
and hold 49% equity in LGBCM Co., Ltd. after the new share subscription is completed); and agree to
the Company’s acquisition of the contractual status, rights, and obligations under the Shareholders’
Agreement signed between Tianjin B&M Science Technology Co., Ltd. and LG Chemical Co., Ltd. (that
is, after the acquisition is completed, the Company will jointly construct a 66,000 ton NCMA cathode
material project with LG Chemical Co., Ltd. in Guiwei City, South Korea, with a total investment of
approximately KRW 437.1 billion).
27 / 262
(1) Major equity investments

□Applicable√Not applicable
(2) Major non-equity investments

Investment amount
Accumulated actual
Project name Project amount Project progress during the reporting Project revenue
investment amount
period
After the first phase of
Project of ternary The total planned the project achieves the
cathode for high-nickel investment is EUR 1.278 planned capacity, the
electrical batteries billion, with a total Preliminary preparation Company will add an
RMB 97,833.58 RMB 97,833.58
owned by Bamo planned investment of work annual capacity of
Technology Hungary Kf EUR 252 million for the approximately 25000
in Hungary first phase tons of high-nickel
ternary cathode.
1. On June 21, 2023, the Company held the fourth meeting of its sixth board of directors and approved the Proposal on Foreign Investments, agreeing that the
Company, through Bamo Technology Hungary Kf, its controlling subsidiary, invests in the construction of a ternary cathode project for high-nickel electrical
batteries in Hungary. Please refer to the Company’s announcement No. 2023-086 for details.After preliminary calculation, the total planned investment of the
project is EUR 1.278 billion (including a total planned investment of EUR 252 million for the first phase), with a construction scale of 25000 tons per year for the
first phase.
(3) Financial assets measured at fair value

Please refer to the contents of “XI. Disclosure of Fair Value” in “Section X Financial Report” of this report for details.
Securities investments
Securities investments
Private fund investments

Derivatives investments
28 / 262
29 / 262
(V) Sales of major assets and major equity

(VI) Analysis of major holding companies and participating companies

Name of Business Main products Registere Operating
Total assets Liabilities Net assets Net profits
subsidiary nature or services d capital income
Trade of cobalt
Trade and HKD
Huayou and copper raw 1,233,901,043.2
wholesale 469.092 18,536,024,269.68 14,687,516,199.35 3,848,508,070.34 8,434,272,932.61
Hong Kong materials and 3
industry million
products
R&D,
production and RMB
Huayou Manufact
sales of cobalt, 2,016.017 19,215,230,442.22 14,482,443,217.87 4,732,787,224.35 11,659,907,662.12 -175,227,674.68
Quzhou uring
copper and 3 million
nickel products
Business African mining
Huayou
and development HKD
Mining Hong 20,150,730,629.71 12,049,048,820.55 8,101,681,809.15 0.00 -63,352,080.94
service and investment 10,000
Kong
industries platform
Production and
Huayou New RMB
Manufact sales of ternary
Energy 2,265,786 13,712,145,627.83 10,055,499,809.91 3,656,645,817.92 5,257,743,140.43 247,233,554.87
uring precursor
Quzhou ,600
materials
Trade and Trade of cobalt,
Huayou USD 15
wholesale copper and 2,599,740,568.05 2,349,542,053.84 250,198,514.21 4,173,487,181.35 94,481,204.84
Singapore million
industry nickel products
Manufacturing
of non ferrous
base metals;
bulk trade in
metals and
Huayue Manufact metal ores; bulk USD 260
13,969,353,685.72 8,601,325,867.47 5,368,027,818.25 3,734,338,241.50 829,638,342.93
Company uring trade in cement, million
lime, sand and
gravel; and
bulk trade in
materials and
basic chemicals
Bulk trade in
metals and
metal ores, USD
Huake Manufact
non-ferrous 103.182 5,193,802,259.30 3,750,767,968.46 1,443,034,290.83 2,614,790,242.92 556,086,088.44
Company uring
metal million
manufacturing
industry
R&D,
production and
sales of
electronic
components
and RMB
Chengdu Manufact
communication 1,030 17,638,093,434.93 14,145,108,988.90 3,492,984,446.03 14,817,347,030.09 387,356,464.26
B&M uring
equipment; million
R&D and
productopm pf
high-tech
battery material
products, etc
Non-ferrous
Huafei Manufact base metal USD 540
14,860,518,829.85 10,995,089,310.78 3,865,429,519.06 0.00 -6,318,286.88
Company uring manufacturing/i million
ndustry
(VII) Structural entities controlled by the Company

30 / 262
V. Other disclosures
(I) Possible risks
1. Risk of fluctuations in the product price
The Company’s main products include lithium-ion cathode materials, precursor products, nickel,
cobalt and lithium new material products, and copper products. Due to the influence of various factors
such as global economy, supply and demand, market expectations and speculative speculation, the prices
of cobalt, nickel, lithium and copper metals present high volatility feature, which in turn leads to product
market price fluctuations. During the reporting period, the prices of cobalt and nickel products fluctuated
and declined overall. Lithium product prices first fell and then rose, while copper product prices
fluctuated at high levels. The increase in prices to some extent improved the Company’s profitability,
while the decrease in prices also weakened the Company’s profitability. If there is a significant decline
in the prices of cobalt, nickel, lithium and copper metals in the future, the Company will face the risk of
inventory depreciation loss and operating performance falling short of expectations, significant decline,
or losses.
2. Exchange risk
At present, the Company’s business layout is highly internationalized. The overseas operations of
the subsidiaries, the procurement of major raw materials such as nickel, cobalt and lithium, and the
export and sales of products such as cobalt-nickel new materials, precursors and cathode materials are
mainly settled in U.S. dollars. As a result, production and operations are exposed to significant risks
from fluctuations in foreign currency exchange rates. During the reporting period, the exchange rate of
RMB against USD fluctuated greatly. The above settlement method generally resulted in exchange gains
for the Company. However, if further exchange rate fluctuations occur, it may cause the Company to
incur exchange loss or increase its operating expenses, which in turn may have a certain negative impact
on the Company’s profitability. At the same time, the functional currency of the Company’s overseas
subsidiaries is mostly USD, and the change in the RMB exchange rate will expose the Company to the
risk of foreign currency statement translation.
3. Risks from environmental protection
Since the production and operations of the Company must comply with a number of environmental
laws and regulations relating to air, water quality, waste disposal, public health and safety, the Company
is required to obtain relevant environmental protection permits and accept inspection by the relevant
environmental protection authorities of its country and places where overseas investments are made. In
recent years, the Company has invested a large amount of capital and technical force in the renovation of
environmental protection equipment and production processes, and has carried out the treatment and
discharge of pollutants in accordance with the environmental protection requirements of its country and
the places where overseas investments are made. However, in the future, more stringent environmental
protection standards may be implemented at home and abroad, and more extensive and stringent
31 / 262
environmental protection control measures may be adopted. As a result, the Company’s environmental
protection costs and management difficulties will increase
4. Risk of uncertainty in technology R&D
During the reporting period, the Company organized R&D for a series of products such as ternary
and single crystal applications of various models. Some products have been mass-produced and sold,
and some products have been certified. However, some products are still in the process of development
and certification, and there is great uncertainty, which may result in the risk of not achieving the
expected targets. At the same time, due to the high technology content of new energy lithium-ion battery
materials and the rapid upgrading of technology, there is a certain uncertainty as to whether the
Company can seize the opportunity in this process to achieve the first breakthrough in R&D, production,
and sales. If the Company is unable to keep up with the pace of industrial development in new product
R&D, certification, and sales, or if downstream manufacturers choose or develop other potential
technological routes, it may lead to the risk of transformation and upgrading not meeting the
expectations.
5. Management risk
The Compan has secured its supply of raw overseas, expanded its production and operation across
China, and marketed and sold its products globally, and has formed its business model which
underpinned by its three major business segments, namely, new energy business, new material business
and resource business. The characteristics of the transnational and trans-regional, wide variety of
products, and long industrial chain increase the management difficulty of the Company. During the
reporting period, due to the continuous expansion of the Company’s main business, the continuous
growth of the product quantity and the continuous adjustment of the product structure, how to establish
and improve the effective management system, investment control system and internal control system,
and how to introduce and train management, technical and marketing talents will become the major
problems facing the Company. If the Company’s operation management system, investment control
ability and human resources coordination ability cannot be improved correspondingly with the
international expansion of the Company’s business, the future development of the Company’s business
will be affected, and the investment projects will face the risk of not meeting the expectations.
6. Risks of transnational business
The new energy vehicle industry has a highly globalized characteristic, with terminal markets
mainly concentrated in places such as China, Europe and the United States. The Company, based on
characteristics of the industry, arranged its business operation internationally and invested in mineral
resource development, smelting and processing, battery material manufacturing and other projects in
Indonesia, D. R. Congo, Zimbabwe, South Korea, Hungary and other places. Due to uncertainty factors
such as industrial policies, politics, economy, regulation and law in the countries where the investment
projects are located and the end markets are located, if the Company is unable to effectively respond to
and resolve the said risks in the future, it may lead to the risk of litigation and development not meeting
expectations.
32 / 262
(II) Other disclosures

33 / 262
Section IV Corporate Governance

I. General information about the shareholders’ meeting
Query index of the
Date on which the
designated website on Poll results of the
Session Date of meeting poll results is
which the poll results meeting
disclosed
is disclosed
Announcement of
the Poll Results of
The First Website of the the First
Extraordinary Shanghai Stock Extraordinary
January 20, 2023 January 21, 2023
Shareholders’ Exchange Shareholders’
Meeting in 2023 http://www.sse.com.cn Meeting of
Huayou Cobalt in
2023 (2023-017)
Announcement of
the Poll Results of
Website of the
2022 Annual the 2022 Annual
Shanghai Stock
Shareholders’ May 18, 2023 May 19, 2023 Shareholders’
Exchange
Meeting Meeting of
http://www.sse.com.cn
Huayou Cobalt
(2023-067)
Announcement of
the Poll Results of
The Second Website of the the Second
Extraordinary Shanghai Stock Extraordinary
August 15, 2023 August 16, 2023
Shareholders’ Exchange Shareholders’
Meeting in 2023 http://www.sse.com.cn Meeting of
Huayou Cobalt in
2023 (2023-113)
Whether there is the situation that preferred shareholders with voting rights resumed request to
convene an extraordinary shareholder’ meeting
Description of the shareholders’ meeting

34 / 262
II. Changes in directors, supervisors, and senior officers of the Company

Name Position Details of change
Chen Xuehua Chairman Election
Chen Hongliang Director and General Manager Election
Vice Chairman and Vice General
Fang Qixue Election
Manager
Director, Deputy General Manager,
Wang Jun Election
Chief Financial Officer
Zhu Guang Independent Director Election
Dong Xiuliang Independent Director Election
Qian Bolin Independent Director Election
Zhang Jiangbo Supervisor Election
Xi Hong Supervisor Election
Tao Yiwen Supervisor Election
Chen Yaozhong Deputy General Manager Appointment
Xu Wei Deputy General Manager Appointment
Gao Baojun Deputy General Manager Appointment
Qian Xiaoping Deputy General Manager Appointment
Fang Yuan Deputy General Manager Appointment
Wu Mengtao Deputy General Manager Appointment
Lu Feng Deputy General Manager Appointment
Li Rui Secretary of the Board of Directors Appointment
Qian Xiaoping Director Resignation
Yuan Zhong Supervisor Resignation
Shen Jianrong Supervisor Resignation
Deputy General Manager and Chief
Hu Yanhui Resignation
Financial Officer
Zhou Qifa Deputy General Manager Resignation
Zhang Binghai Deputy General Manager Resignation
Changes in directors, supervisors, and senior officers of the Company

1. On February 22, 2023, the Company held the 50th meeting of the 5th Board of Directors and
approved the Proposal on the Appointment of Deputy General Manager, appointing Mr. Wang Jun as
the Deputy General Manager of the Company.
2. On April 26, 2023, the Company held an employee representative meeting and elected Mr. Zhang
Jiangbo and Ms. Tao Yiwen as the Employee Representative Supervisors of the 6th Board of
Supervisors.
3. On May 18, 2023, the Company held the 2022 Annual Shareholders’ Meeting and reviewed and
passed the Proposal on the Election of Non-Independent Director Candidates for the Board of Directors,
the Proposal on the Election of Independent Director Candidates for the Board of Directors, and the
Proposal on the Election of Non-Employee Representative Supervisors for the Board of Supervisors,
electing Mr. Chen Xuehua, Mr. Chen Hongliang, Mr. Fang Qixue and Mr. Wang Jun as
Non-Independent Directors of the 6th Board of Directors, electing Mr. Zhu Guang, Mr. Dong Xiuliang
and Mr. Qian Bolin as the Independent Directors of the 6th Board of Directors of the Company, and
electing Ms. Xi Hong as a Non-Employee Representative Supervisor of the 6th Board of Supervisors of
the Company.
4. On May 18, 2023, the Company held the first meeting of the 6th Board of Directors and approved the
Proposal on the Election of the Chairman of the 6th Board of Directors, the Proposal on the Election of
the Vice Chairman of the 6th Board of Directors, the Proposal on the Engagement of the President, the
Proposal on the Engagement of the Vice President and Chief Financial Officer, and the Proposal on the
Engagement of the Secretary of the Board of Directors, electing Mr. Chen Xuehua as the Chairman of
the 6th Board of Directors of the Company, electing Mr. Fang Qixue as the Vice Chairman of the 6th
Board of Directors of the Company, engaging Mr. Chen Hongliang as the General Manager of the
35 / 262
Company, engaging Mr. Fang Qixue, Mr. Chen Yaozhong, Mr. Xu Wei, Mr. Gao Baojun, Mr. Wang Jun,
Mr. Qian Xiaoping, Mr. Fang Yuan, Mr. Wu Mengtao and Mr. Lu Feng as the Vice Presidents of the
Company, engaging Mr. Wang Jun as the Chief Financial Officer of the Company, and engaging Mr. Li
Rui as the Secretary of the Board of Directors of the Company.
5. On May 18, 2023, the Company held the first meeting of the 6th Board of Supervisors and passed the
Proposal on the Election of the Chairman of the 6th Board of Supervisors, electing Mr. Zhang Jiangbo as
the Chairman of the 6th Board of Supervisors of the Company.
III. Plan for profit distribution or conversion of capital reserve into share capital
Formulated semi-annual plan for profit distribution or conversion of capital reserve into
share capital
Is there any profit distribution or conversion of
No
capital reserve into share capital
Number of bonus shares distributed per 10 shares 0
Amount of dividends distributed per 10 shares
0
(RMB) (tax inclusive)
Number of additional shares converted per 10
0
shares
Relevant information of the plan for profit distribution or conversion of capital reserve into share capital
The Company will not distribute profits or convert capital reserves into share capital in the first half of
2023.
IV. The Company’s equity incentive plans, employee stock ownership plans or other employee
incentive measures, as well as their impacts
(I) Equity incentive matters which have been disclosed in an interim announcement and there
is no progress or change in subsequent implementation thereof
Overview of the matter Query index
On November 18, 2022, the Company convened the 45th For more information, please refer to the
meeting of the 5th Board of Directors and deliberated Announcement of Huayou Cobalt on the
and approved the Proposal on Adjusting Matters Related Grant of the Reserved Part of the Restricted
to the Grant of Reserved Part of the 2022 Restricted Stock to the Incentive Target (2022-172)
Stock Incentive Plan and the Proposal to Grant the disclosed on November 19, 2022 and the
Reserved Part of Restricted Stock to the Incentive Target. Announcement of Huayou Cobalt on the
The meeting also approved to grant 2,645,800 restricted Results of the Grant of the Reserved Part of
stocks to 574 incentive targets at a grant price of RMB the Restricted Stock to the Incentive Targets
31.61 per share, with November 18, 2022 as the grant (2023-015) disclosed on January 20, 2023.
date for the reserved part of the restricted stock.
Registration for the grant of the reserved part of the
restricted stock under the Incentive Plan was completed
on January 18, 2023. WHEREAS, due to the fact that
some of the employees did not participate in the
subscription of some or all of the restricted stocks within
the specified time during the process of making payment
after the grant date, The number of incentive targets
granted with the reserved part of the restricted stock
under the incentive plan was adjusted from 574 to 441,
and the number of reserved incentive stocks granted was
adjusted from 2,645,800 to 2,035,800.
(II) Incentives matters which are not disclosed in an interim announcement or with subsequent
progress
Equity incentives
36 / 262
Other information
Employee stock ownership plan

Other incentive measures

37 / 262
Section V Environmental and Social Responsibility

I. Environmental information
(I) Description of environmental protection situation of the Company and its subsidiaries
belonging to the key pollutant discharging units announced by the environmental protection
department
During the reporting period, the Company was a key unit for the supervision of water environment,
soil pollution and environmental risks announced by the ecological environment department, Huayou
Quzhou was a key unit for the supervision of water environment, groundwater pollution, atmospheric
environment, soil pollution and environmental risks announced by the ecological environment
department, and Huayou New Energy Quzhou was a key unit for the supervision of water environment,
atmospheric environment, soil pollution and environmental risks announced by the ecological
environment department, Huayou Puxiang is a key unit for the supervision of water environment
announced by the ecological environment department, Resource Recycling is a key unit for the
supervision of water environment, soil pollution and environmental risk announced by the ecological
environment department, and Huajin Company is a key unit for the supervision of water environment
announced by the ecological environment department.
1. Pollution discharge information
Name of the Main Number Distributio
Average Pollutant Actual Approved
Company or pollutants and Discharge of n of Excessive
discharge discharge total total
its characteristic method discharge discharge discharge
concentration standards discharge discharge
subsidiary pollutants outlets outlets
COD Main 41.84mg/L 50mg/L 2.95t 30.77t None
Intermittent discharge
Ammonia 1
discharge outlet of 0.15mg/L 5mg/L 0.05t 3.08t None
nitrogen
the factory
Nitrogen oxide 7.5mg/m3 100mg/m3 0.45t 1.73t None

Huayou
Waste gas
Cobalt
generation
Sulfur dioxide Organized 10.2mg/m3 100mg/m3 0.60t 2.07t None
10 points in
discharge
each
Particulate
workshop 1mg/m3 10mg/m3 0.09t 13.20t None
matter
Non-methane 30.12
120mg/m3 2.17t 15.84t None
hydrocarbon mg/m3
COD Discharge 44.0603mg/L 60mg/L 86.88t 278.31t None
outlet for
production
Intermittent
Ammonia 2 wastewater
discharge 1.0362mg/L 8(15) mg/L 2.03t 42.50t None
nitrogen and nickel
line
wastewater
Waste gas
generation
Huayou Sulfur dioxide 10 points in 10.344mg/m3 100mg/m3 9.18t 196.07t None
Quzhou each
workshop
6 Waste gas 21.2376mg/m3 100mg/m3 12.72t None
Organized generation
Nitrogen oxide discharge points in 443.16t
2 28.85mg/m3 300mg/m3 1.24t None
each
workshop
Waste gas
Non-methane
6 generation 7.9979mg/m3 120mg/m3 1.11t 59.37t None
hydrocarbon
points in
38 / 262
each
workshop Non-prod
1 Non-production 60mg/m3 None
uction
37 Waste gas 3.8419mg/m3 10mg/m3 5.09t None
generation 20mg/
Particulate 4 120mg/m3 4.15t None
points in m3 73.76t
matter
each
2 2mg/m3 30mg/m3 0.08t None
workshop
Ammonia 2
discharge outlet of 1.0362mg/L 8(15) mg/L 1.50t 41.22t None
nitrogen the factory
Exhaust
Nitrogen oxide gas 100mg/m3 0.67t None
Huayou generation Non-prod
Non-production
New Energy point of uction
Quzhou Sulfur dioxide spray 100mg/m3 0.20t None
Organized
24 workshop
discharge
Ammonia Waste gas
2.223mg/m3 10mg/m3 0.12t 14.60t None
(ammonia gas) generation
points in
Particulate
each 2.96mg/m3 10mg/m3 0.54t 15.92t None
matter
workshop
Ammonia 1
discharge outlet of 1.638mg/L 5mg/L 0.18t 3.93t None
nitrogen
the factory
Huayou
Waste gas
Puxiang
generation
Particulate Organized Non-prod
7 points in Non-production 10mg/m3 3.19t None
matter discharge uction
each
workshop
Ammonia 1
discharge outlet of 1.0362mg/L 8(15) mg/L 0.43t 5.39t None
nitrogen the factory
Resource Particulate
Waste gas 3.62mg/m3 10mg/m3 2.28t 4.12t None
Recycling matter
generation
Non-methane Organized
6 points in 5.62mg/m3 120mg/m3 0.11t 7.80t None
hydrocarbon discharge
each
Nitrogen oxide <3mg/m3 100mg/m3 0.05t 20.83t None
workshop
Sulfur dioxide <3mg/m3 100mg/m3 0.05t 2.22t None
Ammonia 1
discharge outlet of 1.0362mg/L 5(8)mg/L 0.0046t 1.20t None
nitrogen
the factory
Huajin
Waste gas
Company
generation
Particulate Organized
11 points in 3.29mg/m3 10mg/m3 0.67t 2.00t None
matter discharge
each
workshop
Remark: In the discharge concentration of ammonia nitrogen, the values outside the parentheses are the
control indicators when the water temperature is greater than 12℃, and the values inside the parentheses
are the control indicators when the water temperature is less than or equal to 12℃.
2. Construction and operation of pollution prevention and control facilities
During the reporting period, the pollution prevention and control facilities and systems of the
Company and the said subsidiaries have been functioning normally. The production wastewater and
domestic sewage were treated and discharged to the standard; the production waste gas was treated and
discharged to the standard by the corresponding waste gas treatment facilities; the solid wastes were
collected and stored separately according to the relevant regulations, among which the domestic wastes
were handed over to the sanitation department for disposal, the general industrial solid wastes were
handed over to the recycler with technical ability for recycling, and the hazardous wastes were handed
39 / 262
over to the unit with hazardous waste management license for disposal; and the noise at boundary of the
factory were in compliance with the relevant emission standards.
Name of the Construction and operation of pollution prevention and control facilities
Company
or its
subsidiary
Waste gas treatment facilities: All of the 10 sets of waste gas treatment facilities,
including dust removal devices, water washing spray towers, secondary alkali spraying,
VOC treatment facilities, are in normal operation;
Wastewater treatment facilities: The 1 set of wastewater treatment facilities, which use
advanced oxidation technology to treat wastewater to make them meet standards, is in
normal operation;
Solid waste treatment measures: Household wastes are entrusted to the environmental
Huayou sanitation department for paid cleaning and transportation. General industrial solid wastes
Cobalt such as non-ferrous metal ash are entrusted to third-party units with technical capabilities
for recycling and comprehensive utilization, while hazardous wastes such as waste paint
barrels, waste paint brushes, third-phase residues, phosphorus removal residues, waste
mineral oil and waste reagent bottles are entrusted to qualified units for treatment;
Noise treatment measures: Noise reduction measures such as soundproof rooms and
replacement of silent equipment are taken, and the noises at boundary of the factory meet
the requirements of the Emission Standard for Industrial Enterprises Noise at Boundary
(GB12348-2008).
including dust removal devices, acid alkali spray towers and RTO combustion treatment
facilities, are in normal operation;
Wastewater treatment facilities: The 2 sets of wastewater treatment facilities, which use
pre-treatment methods such as ammonia recovery tower, multiple heavy metal removal,
phosphorus removal, flocculation and COD removal to pre-treat the wastewater and let
the wastewater enter the Juhua Huanke Wastewater Treatment Plant for treatment after
reaching the discharge standard, are in normal operation;
Huayou
sanitation department for paid cleaning and transportation. General industrial solid wastes
Quzhou
such as non-ferrous metal ash and gypsum slag are entrusted to third-party units for
comprehensive utilization, while hazardous wastes such as waste activated carbon and
three-phase residues are entrusted to qualified units for treatment;
Noise treatment measures: Noise reduction and vibration reduction measures such as
reasonable arrangement of noise equipment, selection of low-noise models of equipment,
installation of sound insulation covers, installation of silencers, building sound insulation,
are taken and help effectively reduce the impact of noise. The noise at boundary of the
factory meets the emission limit requirements of Class 3 functional areas in the Emission
Standard for Industrial Enterprises Noise at Boundary (GB12348-2008).
including acid spray, bag/metal film dust removal, water mist dust removal and calciner
flue gas treatment system, are in normal operation;
Wastewater treatment facilities: The 3 sets of wastewater treatment facilities, which use
two-stage precision filtration, stripping deamination tower, water quality regulation and
other methods to meet the standards for wastewater treatment, are in normal operation;
Huayou
New
sanitation department for paid cleaning and transportation. Hazardous wastes such as
Energy
waste packaging materials, cloth and felt contaminated with materials, waste filter cloth,
Quzhou
empty chemical reagent bottles, waste lubricating oil, are entrusted to qualified units for
treatment;
Noise treatment measures: Noise reduction measures such as selection of low noise
equipment, building soundproof rooms and installation of soft cushions are taken, and the
noises at boundary of the factory meet the requirements of the Emission Standard for
Industrial Enterprises Noise at Boundary (GB12348-2008).
Huayou Waste gas treatment facilities: All of the 14 sets of waste gas treatment facilities,
40 / 262
Puxiang including dust removal devices and secondary spray towers, are in normal operation;
Wastewater treatment facilities: The 3 sets of wastewater treatment facilities, including
2 sets of process wastewater pre-treatment devices which use multi-stage membrane
filtration + deamination heavy + MVR combined process, and 1 set of biochemical
treatment system which uses anoxic + MBR combined process to meet the standards for
wastewater treatment, are in normal operation;
such as waste outer packaging bags and biochemical sludge are entrusted to third-party
units with technical capabilities for recycling and comprehensive utilization, while
hazardous wastes such as waste inner packaging bags and waste cloth bags are entrusted
to qualified units for treatment;
equipment, installation of shockproof pads and sound insulation covers are taken, and the
noises at boundary of the factory meet the requirements of the Emission Standard for
Industrial Enterprises Noise at Boundary (GB12348-2008).
including acid-base spraying, RTO combustion treatment, water film dust removal, bag
dust removal, desulfurization and denitrification facilities, are in normal operation;
Wastewater treatment facilities: The 1 set of wastewater treatment facilities, which use
methods such as heavy metal removal, fluoride removal, phosphorus removal, Fenton
method for COD removal, pH adjustment, etc. to treat the wastewater to make it meet the
standards, is in normal operation y;
Resource
Recycling
sanitation department for paid cleaning and transportation. Hazardous waste such as waste
activated carbon, waste engine oil and third-phase residue are entrusted to qualified units
for treatment.
equipment, installation of soundproof rooms and soft cushions are taken, and the noises at
boundary of the factory meet the requirements of the Emission Standard for Industrial
Enterprises Noise at Boundary (GB12348-2008).
including tertiary dust removal devices and secondary spray towers, are in normal
operation;
Wastewater treatment facilities: The 2 sets of wastewater treatment facilities, including
deamination system and MVR system, which uses ammonia evaporation, pH adjustment,
evaporation and other processes to make the wastewater meet the standard, are in normal
operation;
Huajin
Company
such as waste outsourcing tapes and waste wrapping films are entrusted to third-party
units with technical capabilities for recycling and comprehensive utilization, while
hazardous wastes such as waste packaging materials and waste filter cloth are entrusted to
qualified units for treatment;
equipment, installation of silencers and sound insulation covers are taken, and the noises
at boundary of the factory meet the requirements of the Emission Standard for Industrial
Enterprises Noise at Boundary (GB12348-2008).
3. Environmental impact assessment of construction projects and other administrative permits

for environmental protection with respect thereto
Name of the Environmental impact assessment of construction projects and other

Company or its administrative permits for environmental protection with respect thereto during
subsidiary the reporting period
41 / 262
Huayou Cobalt /
The change project with an annual output of 30,000 tons (metallometry) of
nickel sulfate for high-purity ternary electrical batteries (nickel ice cobalt and
alloy leaching sub-project) passed the independent acceptance inspection on
April 27, 2023. The project with an annual output of 30,000 tons (metallometry)
of nickel sulfate for high-purity ternary electrical batteries (Phase II sub-project
of hazardous solid waste recycling and sub-project of waste material recycling)
Huayou Quzhou passed the independent acceptance inspection on May 31, 2023. The project of
green intelligent manufacturing of 7,000ta (cobalt metallometry) high-voltage
cobalt trioxide was approved by Quzhou Ecological Environment Bureau on
January 18, 2023 (Qu Huan Zhi Zao Jian [2003] No. 6). The project with an
annual output of 50,000 tons (metallometry) of high-purity nickel sulfate (Phase
I) was approved by Quzhou Ecological Environment Bureau on March 24, 2023
(Qu Huan Zhi Zao Jian [2013] No. 18).
The project with an annual output of 50,000 tons of ternary precursor materials
Huayou New
for high-nickel electrical batteries passed the independent acceptance inspection
Energy Quzhou
on June 13, 2023.
Huayou Puxiang /
Resource Recycling /
Huajin Company /
The environmental impact assessments of new, renovation or and expansion projects of Huayou Cobalt,
Huayou Quzhou, Huayou New Energy Quzhou, Huayou Puxiang, Resource Recycling and Huajin
Company over the years are summarized in the following table:
Approval Form for Environmental Impact Assessment of Existing Projects

Approval document after
Constructio
S/N Project name environmental impact Remarks
n situation
assessment
Tongxiang Huayou Cobalt Approval Form for
Nickel New Material Co., Construction Projects
1 Ltd after Environmental Completed
Impact Assessment
[02-0440]
Project of treatment of Approval Form for
wastewater from synthesis Construction Projects
2 workshop of Zhejiang after Environmental Completed
Huayou Cobalt Nickel Impact Assessment
Materials Co., Ltd. [08-0176]
Technical transformation Tong Huan Jian [2008]
3 construction project of No. 77 Completed Huayou Cobalt
Zhejiang Huayou Cobalt
Co., Ltd.
Post-environmental impact Tong Huan Jian Han
assessment of the technical [2010] No. 114
4 transformation construction Completed
project of Zhejiang Huayou
Cobalt Co., Ltd
Technical transformation Jia Huan Jian Han [2012]
project with an annual No. 78
5 output of 1,750 tons Completed
(metallometry) of cobalt
products
42 / 262
New project with an annual Jia Huan Jian Han [2014]

6 output of 950 tons No. 33 Completed
(metallometry) cobalt
products
Energy saving technical Tong Huan Jian [2016]
transformation project with No. 0234
7 an annual output of 600 Completed
tons (metallometry) cobalt
products
Project of the construction Tong Huan Bei [2018]
8 of Cobalt Nickel New No. 252 In progress
Materials Research
Institute
2,600 tons of battery-grade Tong Huan Jian [2018]
9 cobalt sulfate upgrading No. 0114 Completed
and transformation project
Project of construction of Jia Huan Tong Bei
Huayou Headquarters [2020] No. 134 In progress
10
Research Institute
(Tongxiang District)
10,000 tons (cobalt Zhe Huan Jian [2011]
11 metallometry) of new No. 53 Completed
material project
Project of 20,000t/a ternary Qu Huan Ji Jian [2014]
12 cathode material precursor No. 1 Completed
for lithium-ion batteries
3,500 t/a (cobalt Qu Huan Ji Jian [2014]
13 metallometry) cobalt new No. 12 Completed
material project
100,000 tons/year Qu Huan Ji Jian [2015]
ammonium sulfate No. 10 Completed
14
wastewater recycling
project
13,000 tons cobalt new Qu Huan Ji Jian [2016]
15 material technology No. 8 Completed
transformation project
Project of wastewater Qu Huan Ji Jian [2016]
treatment optimization and No. 6 Completed
16 Huayou Quzhou
comprehensive utilization
of renewable resources
Demonstration project for Qu Huan Ji Jian [2017]
multi-component No. 4 Completed
17
high-value clean recycling
of cobalt containing waste
20000t/a battery-grade Qu Huan Ji Jian [2017]
18 anhydrous iron phosphate No. 11 Completed
project
Ammonium sulfate Qu Ji Huan Jian [2017]
19 wastewater recycling No. 32 Completed
project (Phase II)
Project of construction of Qu Ji Huan Jian [2017]
Cobalt Nickel New No. 41
Materials Research Completed
20
Institute - Cobalt Nickel
Series Lithium-ion Battery
New Materials Research
43 / 262
and Development Center

30,000 tons cobalt Qu Ji Huan Jian [2018]
(metallometry) new No. 30 Completed
21
material technology
transformation project
Project of construction of Qu Ji Huan Jian [2018]
Partially
Huayou Science and No. 66
22
Technology Innovation completed
Center
Project with an annual Qu Huan Ji Jian [2019]
output of 30,000 tons No. 35 Partially
23 (metallometry) of nickel
completed
sulfate for high purity
ternary electrical batteries
Pilot project for the Qu Huan Ji Jian [2020]
research of new products of No. 5
201M and 501M cobalt
powder and the
development of green new Completed
24
processes for the treatment
of cobalt nickel
intermediate products using
gas phase reaction
technology
Intelligent manufacturing Qu Huan Ji Jian [2021]
Partially
output of 35,000 tons
25
(metallometry) of key completed
materials for cobalt lithium
batteries
Change of the project with Qu Huan Zhi Zao Jian
an annual output of 30,000 [2021] No. 6
Partially
tons (metallometry) of
26
nickel sulfate for completed
high-purity ternary
electrical batteries
Project with an annual Qu Huan Zhi Zao Jian
output of 50,000 tons [2021] No. 53 Partially
27 (metallometry) of nickel
completed
sulfate for high-nickel
Project of medium Qu Huan Zhi Zao Jian
experimental line for [2021] No. 57
28 Completed
2,000t/a electrified battery
crushing and selection
output of 10,000 tons [2022] No. 1
29 (metallometry) of nicke In progress
sulfate for electrical
batteries
New 7,000t/a (cobalt Qu Huan Zhi Zao [2023]
metallometry) high-voltage No. 6
30 cobaltosic oxide green In progress
intelligent manufacturing
project
31 Project with an annual Qu Huan Zhi Zao Jian In progress
44 / 262
output of 50,000 tons of [2023] No. 18

(metallometry) high purity
nickel sulfate (Phase I)
Project of 20,000t/a of Qu Huan Ji Jian [2014]
ternary cathode material No. 1 Completed
32
precursor for lithium-ion
batteries
Huahai’s project with an Qu Huan Ji Jian [2017]
annual output of 50,000 No. 17
33 tons of ternary precursor Completed
new materials for electrical
batteries
output of 50,000 tons of No. 23
34 ternary precursor materials Completed
for high-nickel electrical
batteries
Project of construction of Qu Huan Ji Jian [2020]
Huayou Headquarters No. 24 In progress
35
Research Institute (Quzhou
District)
Huahai’s industrialization Qu Huan Ji Jian [2020]
demonstration project with No. 34 Huayou New
an annual output of 4000 Completed Energy Quzhou
36
tons of ternary cathode key
materials for high-nickel
Huahai’s industrialization Qu Huan Ji Jian [2020]
37 output of 960 tons of In progress
high-nickel ternary oxide
for batteries
ternary cathode materials In progress
38
precursor for
high-performance electrical
batteries
39 ternary precursor materials In progress
for new high-performance
The Phase
I with an
annual
production
of 5000
Project with an annual
tons has
output of 30,000 tons of Jia Huan Tong Jian
40 been Huayou Puxiang
ternary precursor material [2019] No. 0084
completed
for power lithium batteries
The Phase
II with an
annual
production
of 25,000
45 / 262
tons is in
progress.
Waste battery recycling
Qu Huan Ji Jian [2017]
41 project of Resource Completed
No. 20
Recycling
10,000 tons battery-grade Qu Huan Ji Jian [2019]
lithium carbonate project No. 6
42 Completed
(Phase I) of Resource
Recycling
Project of preparing Qu Huan Ji Jian [2019]
5000t/a power lithium No. 36 Resource Recycling
43 carbonate with waste Completed
ternary lithium batteries of
Resource Recycling
Project of high value Qu Huan Zhi Zao Jian
utilization of multi form [2021] No. 37
44 nickel resources to prepare In progress
battery-grade nickel sulfate
of Resource Recycling
output of 40000 tons of No. 4
ternary precursor new
45 Completed
electrical batteries of
Huajin New Energy
Materials (Quzhou) Co.,
Ltd. Huajin Company
Project of technical Qu Huan Zhi Zao Jian
renovation in the [2021] No. 49
installation of exhaust
46 spray tower in the testing Completed
room of Huajin New
Energy Materials (Quzhou)
Co., Ltd.
4. Emergency plan for environmental emergencies

Name of the Emergency plan for environmental emergencies

Company or its
subsidiary
According to the requirements of the Emergency Management Measures for
Environmental Emergencies, Huayou Cobalt revised its emergency plan for
Huayou Cobalt environmental emergencies (which is valid until November 2023) in 2020, and
filed the plan with the Tongxiang Ecological Environment Bureau with the filing
number of 330483-2020-089-H.
Environmental Emergencies, Huayou Quzhou revised its emergency plan for
Huayou Quzhou environmental emergencies (which is valid until May 2025) in 2022, and filed the
plan with the Quzhou Ecological Environment Bureau with the filing number of
330802-2022-023-H.
Environmental Emergencies, Huayou New Energy Quzhou revised its emergency
Huayou New
plan for environmental emergencies (which is valid until year 2026) in 2023, and
Energy Quzhou
filed the plan with the Zhizao Xincheng Branch of Quzhou Ecological
Environment Bureau with the filing number of 330802-2023-029-H.
46 / 262

Environmental Emergencies, Huayou Puxiang revised its emergency plan for
Huayou Puxiang environmental emergencies (which is valid until November 2026) in 2023, and
filed the plan with the Tongxiang Branch of Jiaxing Ecological Environment
Bureau with the filing number of 330483-2023-006-H.
Environmental Emergencies, Resource Recycling revised its emergency plan for
Resource Recycling environmental emergencies (which is valid until November 2024) in 2021, and
filed the plan with the Quzhou Ecological Environment Bureau with the filing
number of 330802-2021-068-H.
Environmental Emergencies, Huajin Company revised its emergency plan for
Huajin Company environmental emergencies (which is valid until November 2024) in 2021, and
filed the plan with the Zhizao Xincheng Branch of Quzhou Ecological
Environment Bureau with the filing number of 330802-2021-017-M.
5. Environmental self-monitoring plan

Huayou Cobalt has installed online monitoring systems for the discharge of pollution, TOC,
ammonia nitrogen, nickel, pH, VOC, etc., and is connected to government ecological and environmental
departments to ensure their capability of real-time monitoring of pollutant emissions. Besides, the
company has developed a self-monitoring plan in accordance with relevant provisions of the National
Pollution Discharge License Management Measures and made it public on the website of the National
Pollution Discharge License Management Information Platform. It also entrusts third-party
environmental monitoring institutions to conduct regular monitoring and timely reports the monitoring
situation to the Zhejiang Enterprise Self-Monitoring Information Disclosure Platform.
Huayou Quzhou has installed online monitoring systems for the discharge of pollution, TOC,
ammonia nitrogen, pH, SO2 (key sources of exhaust gas in leaching workshops), etc., and is connected
to government ecological and environmental departments to ensure their capability of real-time
monitoring of pollutant emissions. Besides, the company has developed a self-monitoring plan in
accordance with relevant provisions of the National Pollution Discharge License Management Measures
and made it public on the website of the National Pollution Discharge License Management Information
Platform. It also entrusts third-party environmental monitoring institutions to conduct regular monitoring
and timely reports the monitoring situation to the Zhejiang Enterprise Self-Monitoring Information
Disclosure Platform.
Huayou New Energy Quzhou has installed online monitoring systems for the discharge of pollution,
TOC, ammonia nitrogen, pH, etc., and is connected to government ecological and environmental
departments to ensure their capability of real-time monitoring of pollutant emissions. Besides, the
company has developed a self-monitoring plan in accordance with relevant provisions of the National
Pollution Discharge License Management Measures and made it public on the website of the National
Pollution Discharge License Management Information Platform. It also entrusts third-party
environmental monitoring institutions to conduct regular monitoring and timely reports the monitoring
situation to the Zhejiang Enterprise Self-Monitoring Information Disclosure Platform.
Huayou Puxiang has installed online monitoring systems for the discharge of pollution, TOC,
ammonia nitrogen, pH, etc., and is connected to government ecological and environmental departments
to ensure their capability of real-time monitoring of pollutant emissions. Besides, the company has
developed a self-monitoring plan in accordance with relevant provisions of the National Pollution
Discharge License Management Measures and made it public on the website of the National Pollution
Discharge License Management Information Platform. It also entrusts third-party environmental
monitoring institutions to conduct regular monitoring and timely reports the monitoring situation to the
Zhejiang Enterprise Self-Monitoring Information Disclosure Platform.
Resource Recycling has installed online monitoring systems for the discharge of pollution, TOC,
ammonia nitrogen, pH, etc., and is connected to government ecological and environmental departments
to ensure their capability of real-time monitoring of pollutant emissions. Besides, the company has
developed a self-monitoring plan in accordance with relevant provisions of the National Pollution
Discharge License Management Measures and made it public on the website of the National Pollution
47 / 262
Discharge License Management Information Platform. It also entrusts third-party environmental

monitoring institutions to conduct regular monitoring and timely reports the monitoring situation to the
Zhejiang Enterprise Self-Monitoring Information Disclosure Platform.
Huajin Company has installed online monitoring systems for the discharge TOC, ammonia nitrogen,
pH, etc., and is connected to government ecological and environmental departments to ensure their
capability of real-time monitoring of pollutant emissions. Besides, the company has developed a
self-monitoring plan in accordance with relevant provisions of the National Pollution Discharge License
Management Measures and made it public on the website of the National Pollution Discharge License
Management Information Platform. It also entrusts third-party environmental monitoring institutions to
conduct regular monitoring and timely reports the monitoring situation to the Zhejiang Enterprise
Self-Monitoring Information Disclosure Platform.
6. Administrative punishment received due to environmental issues during the reporting period
7. Other environmental information that should be disclosed

(II) Description of environmental protection situation of the companies not belonging to the key
pollutant discharging units announced by the environmental protection department
1. Administrative punishment received due to environmental issues
2. Disclosure of other environmental information with reference to the disclosure requirements

for key pollutant discharging units
The main pollutants discharged by Chengdu B&M include COD, ammonia nitrogen,
particulate matter, etc.
Wastewater environmental protection facilities and discharge: Production process wastewater is
evaporated by the MVR system and then re-used together with steam condensate for the pure water
preparation system, achieving zero discharge of process wastewater. After being treated in a
pre-treatment tank and meeting the Class III standards specified in Table 4 of the Integrated Wastewater
Discharge Standard (GB8978-1996) and Class B standards specified in Table 1 of the Wastewater
Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015), domestic wastewater enters
the Huaikou Industrial Sewage Treatment Plant for further treatment and is discharged up to the
standard.
Waste gas environmental protection facilities and emissions: Waste gas containing particles is
subject to primary dedusting through the filter cartridge dust remover built in the equipment. The
exhaust gas from primary dedusting will pass through the secondary dedusting by the central dust
remover, and, after meeting the standards specified in Emission Standards of Pollutants for Inorganic
Chemical Industry (GB31573-2015) and Table 4 thereof, is discharged from the exhaust funnel at a high
altitude.
Storage and disposal of solid waste: Household waste is collected and disposed of by the
environmental sanitation department in a uniform manner. General solid waste is recycled and disposed
of by recycling companies. Hazardous waste is regularly disposed of by qualified units, and the
company follows the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2023)
during the process of storage of hazardous solid waste, and follows the Management Measures for the
Transfer of Hazardous Waste during the process of transfer of hazardous solid waste.
The company strictly observes environmental protection related laws and regulations such as the
Environmental Protection Law, the Environmental Impact Assessment Law, various environmental
protection special laws, and the Environmental Protection Management Regulations for Construction
Projects during the process of project construction and business operation, and complies with the
regulations of the ecological environment regulatory department.
48 / 262
The main pollutants discharged by Tianjin B&M include COD, ammonia nitrogen,
particulate matter, sulfuric acid mist, etc.
Wastewater environmental protection facilities and discharge: No production wastewater is
produced. After being treated in septic tank and meeting the Integrated Wastewater Discharge Standard
(DB12/356-2018), domestic wastewater enters the sewage treatment plant on North Xianyang Road for
further treatment and is discharged up to the standard.
Waste gas environmental protection facilities and emissions: The exhaust gas (particulate matter,
nickel and its compounds, cobalt and its compounds) is treated by a dust collector, and is emitted after
meeting the standards specified in the Integrated Emission Standard of Air Pollutants (GB16297-1996)
and the Emission Standard of Air Pollutants for Industrial Furnaces (DB12/556-2015). The exhaust gas
(ammonia, hydrogen chloride, sulfuric acid mist) is treated by the tail gas absorption tower, and is
emitted after meeting the standards specified in the Integrated Emission Standard of Air Pollutants
(GB16297-1996) and the Emission Standards for Odor Pollutants (DB12059-2018). The exhaust gas
(TRVOC, etc.) is treated by NMP recovery units or secondary activated carbon, after is discharged at
high altitude after meeting the standards specified in the Emission Control Standard for Industrial
Enterprise Volatile Organic Compounds (DB12/524-2020).
Storage and disposal of solid waste: Household waste is entrusted to the environmental sanitation
department for regular and paid clearance and transportation. General industrial waste such as waste
materials, waste containers and waste packaging bags are handed over to raw material suppliers or
material recycling units for recycling and reuse. Hazardous solid wastes such as cleaning waste liquid,
waste wipes, waste reagent bottles and waste engine oil are entrusted to Tianjin Hejia Veolia
Environmental Services Co., Ltd. and other qualified units for disposal. The company follows the
Standard for Pollution Control on Hazardous Waste Storage (GB18597-2023) during the process of
storage of hazardous solid waste, and follows the Management Measures for the Transfer of Hazardous
Waste during the process of transfer of hazardous solid waste.
The main pollutants discharged by Jiangsu Huayou include particulate matter, tin and its
compounds, etc.
Wastewater environmental protection facilities and discharge: No production wastewater is
produced. Domestic wastewater is treated in septic tank (relying on Nanjing Haixing Power Grid
Technology Co., Ltd.), and, after meeting the standards specified in the Integrated Wastewater
Discharge Standard (GB8978-1996), enters the Jiangning Development Zone Sewage Treatment Plant
for further treatment and is discharged up to the standard.
Waste gas environmental protection facilities and emissions: Welding smoke and dust are treated
with pulse filter cartridge dust collectors, and is discharged at high altitude after the particulate matter
meets the standards specified in the Emission Standard of Pollutant for Battery Industry
(GB30484-2013), and tin and its compounds meet the standards specified in the Integrated Emission
Standard of Air Pollutants (DB32/4041-2021) of Jiangsu Province.
department for paid clearance and transportation. General industrial solid waste such as waste battery
pack iron shell, waste flow guide, waste wire harness, waste battery pack plastic parts, waste packaging
materials, etc., are sold to Nanjing Fanchengtao Renewable Resources Utilization Co., Ltd for recycling
purpose. Scrap modules and unqualified products detected in the factory are sold to Quzhou Huayou
Resource Recycling Technology Co., Ltd. for comprehensive utilization. Waste BMS is entrusted to
Jiangsu Bangteng Environmental Protection Technology Development Co., Ltd. for disposal. The
49 / 262
Guangxi B&M:
The main pollutants discharged from the non ferrous include COD, ammonia nitrogen,
Wastewater environmental protection facilities and discharge: As for the production process
wastewater, the production wastewater generated from the nickel cobalt production line process is
discharged into the wastewater treatment station of nickel cobalt production line for treatment; the
ternary mother liquor produced by the ternary precursor production line undergoes deamination and
weight removal treatment, and the alkali water and wash water are collected and enter the deamination
and weight removal system for treatment; the wash wastewater from the ternary cathode production line
is treated through a membrane treatment system (precision filtration + pH adjustment + UF + RO +
evaporator); the production wastewater of the nickel cobalt production line and of the ternary material
area undergo pretreatment, and, after meeting the standards specified in the Emission Standards of
Pollutants for Inorganic Chemical Industry (GB31573-2015), finally discharged to the lithium battery
base sewage treatment plant for treatment and then discharge up to the standard. The domestic sewage is
treated in the septic tank in the factory and, after meeting the Class B standards of the quality control
project limit of wastewater discharged to municipal sewers specified in Table 1 of the Wastewater
Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015), discharged into the lithium
battery base sewage treatment plant for treatment and then discharge up to the standard.
Waste gas environmental protection facilities and emissions: Waste gas containing particulates is
treated by pulse bag filter, waste gas containing nickel, cobalt and manganese is treated by metal film
dust collector and water mist dust collector, waste gas containing sulfuric acid mist is treated by acid
mist absorption tower, and waste gas containing ammonia is treated by acid spraying, and discharged at
high altitude after reaching the emission concentration limit of air pollutants for new enterprises as
specified in Table 3 of the Emission Standards of Pollutants for Inorganic Chemical Industry
(GB31573-2015). Organic waste gas (sulfuric acid fog, hydrogen chloride, non methane total
hydrocarbon), after three-stage acid fog absorption tower and resin adsorption, and reaching the
Emission Standards of Pollutants for Inorganic Chemical Industry (GB31573-2015) and Integrated
Emission Standard of Air Pollutants (GB16297-1996), is discharged at high altitude.
department for clearance and disposal. Hazardous waste such as waste packaging materials, waste filter
cloth, chemical reagent packaging, rags and felt are entrusted to qualified units such as Guigang Taini
Dongyuan Environmental Protection Technology Co., Ltd. and Xingye Hailuo Environmental Protection
Technology Co., Ltd. for disposal. Hazardous waste such as waste engine oil and waste oil drums are
entrusted to qualified units such as Yulin Hehan Jinhui Renewable Resources Co., Ltd. for disposal. The
The main pollutants discharged from the cathode materials include particulate matter.
Wastewater environmental protection facilities and discharge: Production process wastewater is
evaporated by the MVR system and then re-used together with steam condensate for the pure water
preparation system, achieving zero discharge of process wastewater. After being treated in a
pre-treatment tank and meeting the Class III standards specified in the Integrated Wastewater Discharge
Standard (GB8978-1996), domestic wastewater enters the wastewater treatment plant in the park for
further treatment and is discharged up to the standard.
Waste gas environmental protection facilities and emissions: Waste gas containing particulates is
discharged at high altitude after being treated by pulse and water curtain dust remover and reaching the
special emission limit of air pollutants specified in the Emission Standards of Pollutants for Inorganic
Chemical Industry (GB31573-2015). The dust and exhaust gas from crushing, billet loading and other
processes are treated by dust collectors and then discharged at high altitude after meeting the Integrated
Emission Standard of Air Pollutants (GB16297-1996).
Storage and disposal of solid waste: General industrial solid waste such as the dust particles
adsorbed on the magnetic poles of pulse dust collectors and electromagnetic iron separators is collected
50 / 262
and handed over to raw material suppliers for recycling and reuse. General solid waste such as waste
saggers and ton bags is entrusted to Sichuan Tengfei Shengri Environmental Protection Technology Co.,
Ltd for unified collection and disposal. Hazardous solid waste such as chemical reagent packaging
materials and precursor inner membrane bags are entrusted to qualified units such as Guigang Taini
Dongyuan Environmental Protection Technology Co., Ltd. and Xingye Hailuo Environmental Protection
Technology Co., Ltd. for disposal. Waste oil barrels and waste engine oil are entrusted to qualified units
such as Yulin Hehan Jinhui Renewable Resources Co., Ltd. for disposal. The company follows the
The main pollutants discharged by Zhejiang B&M include COD, ammonia nitrogen,
Wastewater environmental protection facilities and discharge: Production wastewater comes from
equipment cleaning wastewater, testing center wastewater, circulating cooling tower drainage, and
concentrated water generated by the pure water preparation system, with the main components of CODCr
and suspended solids. Testing center wastewater, after MVR treatment, is discharged into the sewage
treatment plant in the park through external discharge pipes. Equipment cleaning wastewater is separated
by pressure filtration, and then discharged into the sewage treatment plant in the park through external
discharge pipes. After pre-treatment, the concentration of the main pollutants in the production
wastewater is relatively low. When it meets the Class III standards specified in the Integrated
Wastewater Discharge Standard (GB8978-1996) and the Indirect Discharge for Emission Limitation of
Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013), it can be discharged through
external discharge pipes. The condensate generated by the MVR treatment process serves as makeup
water for the spray tower. The overflow generated by the operation of the spray tower is discharged into
the MVR treatment tank for recycling and treatment, while the wastewater from the spray tower is not
discharged externally.
Domestic wastewater is pretreated in the septic tank and, after reaching the Class III standards
specified in the Integrated Wastewater Discharge Standard (GB8978-1996) (or Wastewater Quality
Standards for Discharge to Municipal Sewers (GB/T31962-2015) in case of discharge of ammonia
nitrogen through pipes), is discharged through external discharge pipes into Quzhou Municipal Sewage
Treatment Plant for further treatment until it meets the standard.
Waste gas environmental protection facilities and emissions: The lithium-cobalt oxide factory
building No. 1 and the test plant of the company are equipped with precision and high-efficiency filter
cartridges dust collector. The dust at each dust producing point is collected through precision and
high-efficiency filter cartridges, and the exhaust gas is discharged centrally through a high exhaust
funnel. The generate hydrogen chloride and sulfuric acid mist produced during the product testing
process of the project control testing center due to the use of reagents such as hydrochloric acid and
sulfuric acid are treated by an alkali spray tower, and, after meeting the Class II standards specified in
Table 2 of the Integrated Emission Standard of Air Pollutants (GB16297-1996), discharged through an
exhaust funnel in high altitude.
Storage and disposal of solid waste: Dust removal materials generated by the company are re-used
internally as raw materials. High magnetic materials are recycled and utilized internally by the group.
The waste activated carbon and waste membrane generated from the preparation of pure water are
recycled during maintenance by equipment manufacturers. Waste saggars are recycled by Sichuan
Tengfei Risheng Environmental Protection Technology Co., Ltd. Waste ton bags are recycled by
Hangzhou Xinjun Renewable Resources Co., Ltd. Waste mineral oil, waste organic solvents, waste
reagent bottles, waste oil drums, oily waste rags and inorganic salt solids generated after MVR treatment
are entrusted to Wenzhou Environmental Development Co., Ltd. for disposal. The company follows the
51 / 262
3. Reasons for not disclosing other environmental information

(III) Subsequent progress or change in environmental information disclosed during the reporting
period
(IV) Relevant environmental information that is conducive to protecting ecology, preventing and
controlling pollution, and fulfilling environmental responsibilities
The Company actively responds to the United Nations Sustainable Development Goals (UN-SDGs),
follows the relevant international guidelines and standards of ESG and sustainable development, fully
integrates ESG concepts and standards into enterprise operation and management, comprehensively
builds an ESG system with Huayou characteristics, creates value for stakeholders, and builds a
responsible international corporate image to make due contributions to the development of a community
of shared future for mankind with a responsible Huayou attitude. During the reporting period, the
Company was selected as Forbes China’s ESG Inspiration Case for 2023 for its green production of
energy saving, consumption reduction and pollution reduction.
1. System construction
In order to establish a goal-oriented management mechanism and promote effective management of
green development, the Group has established a number of management systems. Each subsidiary has
formulated an environmental protection system applicable to its own industry in accordance with the
requirements of the Group’s General Rules for Environmental Management, set environmental targets,
and implemented targeted management in energy use and resource management. Through the
performance appraisal system, the Company’s environmental performance was further improved to
establish a green brand image. During the reporting period, the discharge of three wastes and other
pollutants of the Company met the discharge standards and the Company was not subject to
environmental punishment due to environmental accidents.
In order to improve the Group’s environmental management system and enhance its environmental
management capabilities, each subsidiary has revised and improved the system, checked the gaps and
made up the missing systems. In the first half of 2023, Resource Recycling revised and improved the
Noise Pollution Management and Control Procedures, the Measures for the Management of Rain
Drainage and the Measures for the Management of General Solid Waste, and formulated the Measures
for the Management of Environmental Protection Facilities and the Measures for the Inspection of
Environmental Protection and Pollution Control; Zhejiang B&M formulated the Waste Control
Procedures, the Waste Gas Emission Control Procedures, the Sewage Discharge Control Procedures,
the Noise Emission Control Procedures and the Solid Waste Management System; Huajin Company
organized the revision of the Environmental Monitoring Management System and the Solid Waste
Management System. Other subsidiaries have also revised relevant environmental management systems
according to the actual situation.
2. Waste water management
Huayou Cobalt attaches great importance to waste water discharge in the production process, takes
the initiative to carry out waste water management, strictly abides by the Water Pollution Prevention
and Control Law of the People’s Republic of China and other local laws and regulations, and monitors
the water conditions in all aspects. For industrial waste water from mining and smelting processes, the
Company strictly tests oil pollutants, metal ions, acid and base pollutants in the water to ensure
up-to-standard discharge of waste water. The Company entrusts a third party to test the production waste
water every quarter, and the test results are 100% up to standard.
3. Waste gas management
52 / 262
Huayou Cobalt strictly abides by the Law on the Prevention and Control of Atmospheric Pollution
and other local laws and regulations. The dust discharged in an organized manner is collected by the dust
removal equipment and then treated centrally, and the dust discharged in an unorganized manner is
controlled by professional waste gas treatment equipment and necessary dust raising measures. For the
treatment of waste gas generated in the smelting process, the Company strictly complies with the
Emission Standard of Pollutants for Copper, Nickel and Cobalt Industry, and its subsidiaries outside
China comply with local laws and regulations and IFC standards. The sulfur dioxide and acid fog
generated in the smelting process are collected by the air pipe and then enter the lye spray tower for
absorption and treatment. The generated dust and tail gas are discharged at high altitude after bag dust
removal and dust removal by water film. The generated organic waste gas is summarized and treated by
RTO. The water gas discharge is up to standard, and there are no other violations such as exceeding the
standard.
4. Waste management
The waste generated in the production process includes general solid waste and hazardous waste.
The Company strictly abides by the Law of the People’s Republic of China on the Prevention and
Control of Environmental Pollution by Solid Waste, the Standard for Pollution Control on the
Non-hazardous Industrial Solid Waste Storage and Landfill, the Standard for Pollution Control on
Hazardous Waste Storage and other Chinese environmental protection laws and regulations and the
relevant national environmental protection laws and regulations of the project site, and reduces the
impact on the environment and reduce the risk through reasonable storage, disposal and recycling of
waste. The Company encourages all plants to carry out technological innovation and process
improvement to minimize waste generation, achieve source reduction, process control, compliant
treatment and recycling, and fulfill our commitment to ecological protection.
Huayou Quzhou carried out hazardous waste reduction - extraction section degreasing activated
carbon reduction (deep degreaser industrialization research), aiming to replace the current activated
carbon degreasing device by self-developed integrated degreasing device, so as to reduce the production
of waste activated carbon (hazardous waste). The bench-scale and pilot-scale experiments have been
completed, and the workshop production line verification is currently under way.
5. Green development
Huayou Cobalt actively responds to the call of the state, practices the concept of “green development
and energy conservation first”, implements the Company’s development plan of “dual carbon”, and
promotes the green development of the whole industrial chain of low-carbon production, green products
and green factories. In the first half of 2023, Huayou Recycling and Volkswagen Group (China)
achieved cooperative results in the comprehensive utilization of decommissioned electrical batteries, and
successfully handed over cooperative products; cascade products and technical solutions were provided
to Huachen BMW to realize green electricity recycling. Resource Recycling was awarded the title of
“Zhejiang Green Low-carbon Factory”; the nickel-cobalt-manganese hydroxide HJ603L and HJ701L
independently developed by Huajin Company and the lithium nickelate-cobaltate-manganate NCM523
independently developed by Chengdu B&M were included in the national green design product list. The
Company’s low-carbon production, green manufacturing and sustainable development capabilities have
been continuously enhanced.
(V) Measures taken to reduce carbon emissions and their effects during the reporting period
Huayou Cobalt is committed to becoming an industry-leading, zero-carbon and green new energy
materials enterprise, creating value for customers, leading the development of new energy lithium-ion
battery materials industry, and accelerating the pace of zero-carbon industry. In the first half of 2023, the
Company fully implemented the plan of “dual carbon”, promoted the green development of the whole
industrial chain of low-carbon production, green products and green factories, and accelerated the
recycling and reuse of recyclable and cascade products.
1. Adjust and optimize the energy structure
As for the use of clean energy, Chengdu B&M used clean hydroelectric energy of
248,920,000KWh, which help reduce CO2 emissions of about 142,000t. The construction of the first
batch of rooftop PV project in Huayou Quzhou Base officially began in December 2022, and it was
successfully connected to the grid for operation in late May 2023. The installed capacity of the project is
4MWp, able to achieve annual power generation of nearly 4,000,000KWh and reduce CO2 emissions of
53 / 262
2,281t. The second batch of 6MWp rooftop PV project in Huayou Quzhou Base started in February 2023,
and the construction officially began at the end of June.
2. Develop recyclable and cascade products
In the first half of 2023, Recycling Industry Group completed the sales of cascade products of
544.5MWh in total, where the sales of low-speed vehicles totaled 484.5MWh and the sales of energy
storage products totaled 60MWh. The sales of low-speed vehicle battery products, energy storage,
storage charging and optical storage charging products in cooperation with the OEMs totaled 13.03MWh.
Through the recycling and sales of cascade batteries and the manufacturing and reuse of cascade
batteries, the carbon emissions of the entire product application market were reduced by more than 40%,
and the energy conservation and emission reduction were accelerated, continuously contributing to the
goal of “dual carbon”.
3. Build zero-carbon plates in an orderly manner
The Company is committed to becoming an industry-leading, zero-carbon and green new energy
materials enterprise, creating value for customers, leading the development of new energy lithium-ion
battery materials industry, and accelerating the pace of zero-carbon industry. Following the completion
of the construction of the world’s first cathode material factory - Chengdu B&M, in order to achieve the
effect of industrial chain extension, Huayou New Energy Quzhou became the Company’s first precursor
plate zero-carbon factory in the first half of the year, certified by the third party international authority
SGS, and gradually built a full life cycle and integrated low-carbon industrial chain of
“nickel-cobalt-lithium rough materials - refining - precursor products - ternary cathode products -
recycling”. In the first half of the year, the carbon emission accounting of 10 stable production
companies at the organizational level was completed, and the carbon footprint verification of more than
30 products in all links of the whole industrial chain from mining to cathode was completed.
4. Improve energy efficiency
According to the status quo of the Company’s industrial development and its current organizational
structure, the management boundary is clearly divided according to the two dimensions of energy and
carbon emissions, and the plan of “dual carbon” of each base company is organized according to the
principle of “three levels and two main lines”. In the first half of the year, Huayou Cobalt, Huayou
POSCO, and Resource Recycling introduced ISO50001 energy management system for construction and
operation, defined clear responsibilities and clear tasks, and consolidated basic management with unified
standards. According to their own characteristics, each industrial group achieved energy and carbon
performance through technological improvement, process improvement and production optimization.
The main dual carbon reduction initiatives are as follows:
CO2 reduction
S/N Project Improvement measures
(t/year)
Through the process refinement management, the second-stage deamination
Deamination and capacity was increased to 3,000m³. After the capacity reached the standard, the
MVR steam unit working conditions of the condenser were optimized, and the steam unit
1 4639.06
consumption consumption was reduced: a) the steam consumption per ton of deammoniating
reduction water was reduced by 9%; b) the steam consumption per ton of MVR product was
reduced by 12.5%.
Technology
improvement for
synthetic use of By canceling the process of metal liquid heating, the metal liquid metal was
2 2274.03
normal passed into the reaction still at normal temperature for synthesis reaction.
temperature
metal liquid
Based on the existing 10,000 tons of MHP line, the extraction line was changed
Electric nickel
without increasing, and the leaching impurity removal and oil removal system was
anolyte
3 reformed according to the acid content of raw materials and anolyte, so as to 8840.72
circulation
maximize the utilization of acid in anolyte and reduce the consumption of caustic
reforming
soda liquid.
Caustic soda
Caustic soda liquid with concentration of 32% was replaced with that of 50%,
liquid
4 water cycle was reduced by 18%, lithium sulfate solution concentration was 2073.76
concentration
reduced from 55g/L to 45%, and the amount of water evaporation was reduced
optimization
According to the oxygen pressure production process, the feed tank was installed
Oxygen pressure
with coil tube, the steam of the vertical still coil was connected to the feed tank,
deiron wire high
5 and the thermal insulation layer was installed outside the tank wall to increase the 7130.86
pressure steam
feed pulp temperature. The time of undercurrent incorporation at the nickel salt
energy saving
pulping section and the amount of undercurrent incorporation was reduced, and
54 / 262
the high pressure steam consumption was reduced. At the same time, the Co yield
of the white alloy was increased by increasing the proportion of the first-stage
liquid incorporation.
In the first and second workshops of the precursor plant II, a set of automatic still
cleaning device was built to reduce the water consumption in reaction still
Precursor still
cleaning, improve the cleaning efficiency, and improve the degree of automation
6 cleaning device 2654.79
and intelligence in still cleaning. The water consumption in cleaning 1 set of
renovation
reaction still was controlled within 4m3, cleaning time was controlled within
20min, and automatic cleaning was realized by PLC control system.
Process Through exploration and research on the atmosphere of 910AS first roasting
7 exploration and process, the optimal oxygen consumption of kiln was explored without affecting 1957.96
research the product quality.
II. Specific situation of the work to consolidate the achievements of poverty alleviation and help
rural revitalization
During the reporting period, the Company adhered to the concept of social responsibility of
“making contributions to local economic and social development no matter where it makes investment”,
and took social and public welfare undertakings as an important work. The total amount of global public
welfare investment reached about RMB 18.34 million (including poverty alleviation and rural
revitalization projects; foreign currency donations were calculated according to the real-time exchange
rate), including but not limited to education, health care, infrastructure, economic development,
environment, agriculture, vocational training, etc. The Company made contributions to the sustainable
development of the community where it is located, adhered to the sharing of development results with
the society, helped build a harmonious society, and strived to be a model for the realization of common
prosperity. Huayue won the 2023 Indonesian Ministry of Health Epidemic Prevention Contribution
Award.
1. Home
2023 is the first year that Huayou donated charitable fund of RMB 50 million to Tongxiang Charity
Federation. During the reporting period, the Company paid RMB 15 million to Tongxiang Charity
Federation, all of which was used for the construction of projects to help the coordinated development of
urban and rural areas and the construction of harmonious villages to live and work. This year is also the
second year that Huayou donated charitable fund of RMB 20 million to Quzhou Charity Federation. In
the form of leaving principal and donating interest, the total amount of donation was RMB 5 million.
During the reporting period, the Company allocated the second installment of the fund, namely RMB 1
million, all of which was used to carry out various forms of charity activities and promote the
construction of marginal common prosperity demonstration zone in Quzhou. In Tongxiang headquarters,
Huayou invested RMB 218,000 to help the internal 23 workers in exceptional poverty (foreign workers
accounted for more than 90%), and invested RMB 50,000 to visit difficult families, difficult party
members and elderly people in nursing homes in villages and communities around Tongxiang
headquarters, benefiting nearly 100 people. In Huayou Quzhou Base, RMB 24,800 was invested in
visiting the surrounding poor villages.
With good deeds and gratitude, Huayou will continue to support the cause of rural revitalization in
2023. Fenghuang Village, Baima Bridge Township, Yugan County, Jiangxi is a key village for the rural
revitalization under the “14th Five-Year Plan”. The collective income of the village was limited. In order
to support its rural development, Huayou took the initiative to extend a helping hand and donated RMB
200,000 for poverty alleviation, which was directed to the construction of the rooftop distributed power
station project of Fenghuang Village, bringing a stable source of income for the collective economy of
Fenghuang Village and contributing to the country’s comprehensive promotion of rural revitalization
and the realization of high-quality development.
2. Abroad
During the reporting period, the Company invested a total of more than RMB 1.85 million overseas
for the development of local community public welfare projects, winning recognition with its own role
and support with its own contributions, creating a good business environment and social environment for
the healthy and sustainable development of Huayou.
In D. R. Congo, following the signing of the Letter of Social Responsibility in 2022, African CDM and
MIKAS successively carried out public welfare projects as planned, donating solar water wells, schools,
food and school supplies, etc., with a total investment of about RMB 620,000. In March 2023, CDM
55 / 262
actively coordinated the 21st Chinese medical team to arrive in Kamatétécommunity for free medical
treatment and donated medical supplies. In Indonesia, in June 2023, Huayou donated about RMB
500,000 to support the national track and field events organized by the Indonesian government. In
Zimbabwe, based on the current production and development environment, Huayou orderly promoted
the social activities and infrastructure construction of the communities around the Acadia lithium mine
project site: in social activities, participated in activities on Zimbabwe Independence Day, and organized
activities on African Freedom Day, etc.; in community construction, laid roads around the factory, and
provided road environmental settings, etc.; in community help, held agricultural goods donation
competition, poultry breeding training, etc., with a total of investment of about RMB 730,000.
56 / 262
Section VI Major Matters

I. Performance of commitments
(I) Commitments made by the actual controller, shareholder, related party, acquirer, company, and other related parties during the reporting period or
continuing into the reporting period
□Applicable □Not applicable
Explain the
Explain the
Whether it specific
Whether next step if
Party Time and is strictly reasons if it
Background of Type of there is it is not
making the Content of commitment period of fulfilled in is not
commitment commitment fulfillment fulfilled in a
commitment commitment a timely fulfilled in a
period timely
manner timely
manner
manner
Commitments Solving Huayou For the purpose of avoiding possible horizontal Yes Yes
related to horizontal Holding competition with the Company in the future,
initial public competition (The safeguarding the interests of all shareholders of the
offering controlling Company and ensuring the Company’s long-term
shareholder and stable development, Huayou Holding, the
of the controlling shareholder of the Company, and Mr.
Company) Chen Xuehua, the person acting in concert
and Chen (collectively, the “Commitment Makers”), have
Xuehua (the respectively issued a Letter of Commitment on
actual Avoiding Horizontal Competition (hereinafter
controller) “Letter of Commitment”) to the Company. The main
contents of the Letter of Commitment are as follows:
1. As of the date of the Letter of Commitment,
neither the Commitment Makers nor any entity
under their control has engaged in or participated in
any business or activity that competes directly or
indirectly in any manner with the Company’s
principal business; 2. As of the date of the Letter of
Commitment, neither the Commitment Makers nor
any entity under their control will engage in or
participate in any business or activity that competes
57 / 262
directly or indirectly in any manner with the

Company’s principal business; 3. Neither the
Commitment Makers nor any entity under their
control shall engage in the same or similar business
as the Company’s principal business, including: (1)
directly or indirectly engaging in or participating in,
or assisting in engaging in or participating in, any
business or activity that competes with, or may
compete with, the Company’s main businesses,
whether within or outside the territory of China, by
themselves or in conjunction with Other, in any
form; and (2) supporting Other in any way, whether
within or outside the territory of China, to engage in
any business or activity that competes or may
compete with the principal business of the
Company; and (3) otherwise engaging (whether
directly or indirectly) in any business or activity that
competes or may compete with the principal
business of the Company. 4. As of the date of the
Letter of Commitment, if the Company further
expands its business scope, neither the Commitment
Makers nor any entity under their control will
compete in any way with the expanded business of
the Company; If competition arises after the
business expansion, the Commitment Makers and
any entity under their control will avoid such
horizontal competition by discontinuing the
operation of the competing business, or by
incorporating the competing business into the
Company, or by transferring the competing business
to an unrelated third party. 5. The foregoing
commitment shall take effect from the date of
issuance of the Letter of Commitment to the date
when the Commitment Makers cease to be the
controlling shareholders of the Company or the date
58 / 262
when the Company ceases to be listed in domestic or

foreign securities exchange institutions.
Commitments Others Huayou 1. After the completion of the transaction, I/the Yes Yes
related to Holding Company will ensure that Huayou Cobalt and its
refinancing (The subsidiaries will continue to maintain their
controlling independence in terms of assets, business, finance,
shareholder institutions, and personnel in accordance with the
of the requirements of normative documents including but
Company) not limited to the Rules Governing the Listing of
and Chen Stocks on the Shanghai Stock Exchange. 2. If I/the
Xuehua (the Company causes any loss to Huayou Cobalt and its
actual relevant shareholders as a result of failure to perform
controller) or improper performance of the above commitments,
I/the Company shall bear such loss in full in cash.
Solving Huayou 1. I/the Company undertakes that as long as I/the Yes Yes
horizontal Holding Company is the controlling shareholder/actual
competition (The controller of Huayou Cobalt, the Company/Other
controlling enterprises under my control will not engage,
shareholder directly or indirectly, in any production or operation
of the that competes or may compete with the principal
Company) business of Huayou Cobalt and its subsidiaries, nor
and Chen will we invest in any other business that competes or
Xuehua (the may compete with the principal business of Huayou
actual Cobalt and its subsidiaries. 2. During the foregoing
controller) period, I/the Company and other enterprises
controlled by me/the Company will promptly notify
Huayou Cobalt of any business opportunity that
competes or may compete with the principal
business of Huayou Cobalt and its subsidiaries and
will use our best efforts to pass the business
opportunity to Huayou Cobalt in order to avoid
competition or potential competition with Huayou
Cobalt and its subsidiaries and to ensure that the
interests of Huayou Cobalt and other shareholders of
Huayou Cobalt are not harmed. 3. The operating
59 / 262
profits obtained by me/the Company as a result of

non-performance or improper performance of the
above commitments shall be owned by Huayou
Cobalt. If I/the Company causes any loss to Huayou
Cobalt and its relevant shareholders as a result of
failure to perform or improper performance of the
above commitments, I/the Company shall bear such
loss in full in cash and be jointly and severally
liable.
Solving Huayou 1. After the completion of the transaction, the Yes Yes
related party Holding Company/I and other holding enterprises will try our
transactions (The best to avoid any related party transactions with
controlling Huayou Cobalt and its holding and shareholding
shareholder companies; Inevitable related business dealings or
of the transactions shall be conducted on an equal and
Company) voluntary basis in accordance with the principles of
and Chen justice, fairness and compensation for equal value,
Xuehua (the and the transaction price shall be determined based
actual on a reasonable price recognized by the market. 2.
controller) The Company/I will strictly abide by the avoidance
provisions on related party transactions in the
Articles of Association of Huayou Cobalt and other
normative documents, and all related party
transactions involved will be conducted in
accordance with the prescribed decision-making
procedures. We will also disclose information on
related party transactions in a timely manner in
accordance with the legal procedures; We will not
use related party transactions to transfer profits or
harm the legitimate rights and interests of Huayou
Cobalt and other shareholders. 3. If the Commitment
Makers cause any loss to Huayou Cobalt and its
relevant shareholders as a result of failure to perform
or improper performance of the above commitments,
they shall bear such loss in full in cash and be jointly
60 / 262
and severally liable.

Others Directors Upon completion of the non-public offering, the Yes Yes
and senior directors and senior officers of the Company will
officers of continue to faithfully and diligently perform their
the duties, safeguard the legitimate rights and interests
Company of the Company and all shareholders, and make the
following commitments to the effective performance
of the Company’s measures to making up the gap in
accordance with the relevant regulations of the
China Securities Regulatory Commission: “1. I
undertake to perform my duties faithfully and
diligently and to protect the legitimate rights and
interests of the Company and all shareholders; 2. I
undertake not to give benefits to other entities or
individuals free of charge or on unfair terms, and not
to harm the interests of the Company in any other
way; 3. I undertake to restrict my job-related
consumption behavior; 4. I undertake not to use the
Company’s assets to engage in investment and
consumption activities unrelated to the performance
of duties; 5. I undertake that the remuneration
system established by the Board of Directors or the
Nomination and Remuneration Committee is linked
to the implementation of the Company’s measures to
making up the gap; 6. I undertake that the vesting
conditions of any equity incentive plans announced
will be linked to the implementation of the
Company’s measures to making up the gap; 7. I
undertake to effectively implement the Company’s
measures to making up the gap and fulfill any
commitments I have made regarding the measures to
making up the gap. If I violate any of these
commitments and cause losses to the Company or its
investors, I am willing to bear the liability for
compensation to the Company or its investors in
61 / 262
accordance with the law; 8. From the date of

issuance of the commitments to the completion of
the Company’s non-public offering of the shares, if
the China Securities Regulatory Commission
formulates any other new regulatory requirements
regarding the measures to making up the gap and
their commitments and the above commitments
cannot satisfy such provisions of the China
Securities Regulatory Commission, I undertake to
issue a supplementary commitment in accordance
with the latest regulations of the China Securities
Regulatory Commission at that time.”
Others Huayou In order to reduce the impact of the shares issued in Yes Yes
Holding this non-public offering diluting the return for the
(The current period and ensure that the measures taken by
controlling the issuer to making up the gap can be effectively
shareholder implemented, Huayou Holding, the controlling
of the shareholder of the Company, and Xuehua Chen, the
Company) actual controller, have made the following
and Chen commitments to the effective implementation of the
Xuehua (the Company’s measures to making up the gap in
actual accordance with the relevant regulations of the
controller) China Securities Regulatory Commission: “1. The
Company/I undertake to exercise the shareholders’
rights in accordance with the relevant laws,
regulations, and the relevant provisions of the
Articles of Association, and undertake not to
interfere in the operation and management of the
Company beyond our authority and not to harm the
interests of the Company; 2. The Company/I
relevant measures to making up the gap and fulfill
any commitments I have made in this regard. If I
violate any of these commitments and cause losses
to the Company or its investors, I am willing to bear
62 / 262
the liability for compensation to the Company or its

investors in accordance with the law; 3. From the
date of issuance of the commitments to the
completion of the Company’s non-public offering of
the shares, if the China Securities Regulatory
Commission formulates any other new regulatory
requirements regarding the measures to making up
the gap and their commitments, and the above
commitments cannot satisfy such provisions of the
China Securities Regulatory Commission, The
Company/I undertakes to issue a supplementary
commitment in accordance with the latest
regulations of the China Securities Regulatory
Commission at that time.”
Others Directors Upon completion of the issuance of the convertible Yes Yes
and senior corporate bonds, the directors and senior officers of
officers of the Company will continue to faithfully and
the diligently perform their duties, safeguard the
Company legitimate rights and interests of the Company and
all shareholders, and make the following
commitments to the effective performance of the
Company’s measures to making up the gap in
accordance with the relevant regulations of the
China Securities Regulatory Commission: “1. I
undertake to perform my duties faithfully and
diligently and to protect the legitimate rights and
interests of the Company and all shareholders; 2. I
undertake not to give benefits to other entities or
individuals free of charge or on unfair terms, and not
to harm the interests of the Company in any other
way; 3. I undertake to restrict my job-related
consumption behavior; 4. I undertake not to use the
Company’s assets to engage in investment and
consumption activities unrelated to the performance
of duties; 5. I undertake that the remuneration
63 / 262
system established by the Board of Directors or the

Nomination and Remuneration Committee is linked
to the implementation of the Company’s measures to
making up the gap; 6. I undertake that the vesting
conditions of any equity incentive plans announced
will be linked to the implementation of the
Company’s measures to making up the gap; 7. I
commitments I have made regarding the measures to
making up the gap. If I violate any of these
commitments and cause losses to the Company or its
investors, I am willing to bear the liability for
compensation to the Company or its investors in
accordance with the law; 8. From the date of
issuance of the commitments to the completion of
the Company’s issuance of the convertible corporate
bonds, if the China Securities Regulatory
Commission formulates any other new regulatory
requirements regarding the measures to making up
the gap and their commitments and the above
commitments cannot satisfy such provisions of the
China Securities Regulatory Commission, I
undertake to issue a supplementary commitment in
accordance with the latest regulations of the China
Securities Regulatory Commission at that time.”
Others Huayou In order to reduce the impact of the convertible Yes Yes
Holding corporate bonds diluting the return for the current
(The period and ensure that the Company’s measures to
controlling making up the gap can be effectively implemented,
shareholder Huayou Holding, the controlling shareholder of the
of the Company, and Xuehua Chen, the actual controller,
Company) have made the following commitments to the
and Chen effective implementation of the Company’s
Xuehua (the measures to making up the gap in accordance with
64 / 262
actual the relevant regulations of the China Securities

controller) Regulatory Commission: “1. The Company/I
undertake to exercise the shareholders’ rights in
accordance with the relevant laws, regulations, and
the relevant provisions of the Articles of
Association, and undertake not to interfere in the
operation and management of the Company beyond
our authority and not to harm the interests of the
Company; 2. The Company/I undertake to
effectively implement the Company’s relevant
commitments I have made in this regard. If I violate
any of these commitments and cause losses to the
Company or its investors, I am willing to bear the
liability for compensation to the Company or its
investors in accordance with the law; 3. From the
date of issuance of the commitments to the
completion of the Company’s public issuance of
convertible corporate bonds, if the China Securities
Regulatory Commission formulates any other new
regulatory requirements regarding the measures to
making up the gap and their commitments, and the
above commitments cannot satisfy such provisions
of the China Securities Regulatory Commission, The
Company/I undertakes to issue a supplementary
commitment in accordance with the latest
regulations of the China Securities Regulatory
Commission at that time.”
Commitments Others The The Company undertakes not to provide loans or From the date Yes Yes
related to Company any other form of financial assistance, including on which the
equity guarantees for its loans, to the incentive targets for grant
incentives the purpose of obtaining the restricted stock under registration is
the 2021, 2022 and 2023 incentive plans. completed to
the date on
which all
65 / 262
restricted
stocks
granted to the
incentive
targets are
unlocked or
canceled
Others All The incentive targets of the Company in 2021, 2022 From the date Yes Yes
incentive and 2023 undertake that if the Company fails to on which the
targets comply with the arrangement for the grant or grant
exercise of rights and interests due to false records, registration is
misleading statements or material omissions in the completed to
information disclosure documents, the incentive the date on
targets will return all the benefits obtained from the which all
equity incentive plan to the Company after the false restricted
records, misleading statements or material omissions stocks
in the relevant information disclosure documents granted to the
have been confirmed. incentive
targets are
unlocked or
canceled
66 / 262
II. Controlling shareholder’s and other related parties’ occupation of the Company’s funds for non-operation purpose during the reporting period
III. Illegal guarantee

67 / 262
IV. Audit of the semi-annual report

V. Changes in matters covered by non-standard audit opinions in last year’s annual report and
handling thereof
VI. Matters related to bankruptcy and reorganization

VII. Major litigations/arbitrations

□There are major litigations/arbitrations during the reporting period √There are no major
litigations/arbitrations during the reporting period
VIII. Punishment on the Company, its directors, supervisors, senior officer, controlling
shareholder and actual controller due to violation of laws and regulations, and their
rectification
IX. Credit status of the Company, its controlling shareholder and actual controller during the
reporting period
During the reporting period, the Company, its controlling shareholders and actual controllers maintained
good credit status.
X. Major related-party transactions

(I) Related-party transactions related to daily operation
1. Those that have been disclosed in the interim announcement and have no progress or changes
in subsequent implementation
On January 4, 2023, the 48th meeting of the 5th Please refer to the Announcement of Huayou
Board of Directors of the Company deliberated Cobalt on Signing the Sales Contract & Reaching
and approved the Proposal on Signing Sales Related Party Transactions with Puhua Company
Contract and Related Party Transactions with (2023-005) published on January 5, 2023.
Puhua Company, which was deliberated and
approved by the first extraordinary shareholders’
meeting in 2023.
On January 4, 2023, the 56th meeting of the 5th Please refer to the Announcement of Huayou
Board of Directors of the Company deliberated Cobalt on Review of Daily Related Party
and approved the Proposal on Forecast of Daily Transactions in 2022 and the Forecast of Daily
Related Party Transactions in 2023 which was Related Party Transactions in 2023 (2023-052)
resolved and approved at the 2022 Annual published on April 28, 2023.
Shareholders’ Meeting.
2. Those that have been disclosed in the interim announcement but have progress or changes in
subsequent implementation
3. Those that are not disclosed in the interim announcement

68 / 262
(II) Related-party transactions related to the acquisition of assets or acquisition or sale of equity
3. Those that have not been disclosed in the interim announcement

4. Where there is any agreement on business performance in respect of any related-party

transactions above, the situation of achievement of the business performance during the
reporting period shall be disclosed.
(III) Major related-party transactions related to joint external investments


(IV) Related credits and debts

On April 26, 2023, the Company held the 56th Please refer to the Company’s Announcement on
meeting of the 5th Board of Directors and the Acceptance of Financial Aid from Related
deliberated and approved the Proposal on the Parties and Related Party Transactions
Acceptance of Financial Aid from Related Parties (2023-060) disclosed on April 28, 2023.
and Related Party Transactions. Maximum
borrowing limit term: three years from the date
when the shareholders meeting of the Company
deliberates and approves the proposal. The matter
was reviewed and approved at the 2022 annual
shareholders’ meeting of the Company

69 / 262
(V) Financial business between the Company and related financial companies, or between the
financial companies controlled by the Company and related parties
(VI) Other major related-party transactions

(VII) Others
XI. Major contracts and their performance

1. Trusteeship, contracting, lease matters
70 / 262
2. Major guarantees provided and outstanding during the reporting period

Guarantee provided by the Company (excluding those provided for its subsidiaries)
Relationship Guarantee
Related
between the occurrence Guarantee
Guaranteed Guarantee Guarantee Guarantee Principal Collateral Fulfilled Overdue Overdue Counter party Related
Guarantor guarantor date (date expiry
party amount start date category debt (if any) or not or not amount guarantee guarantee relationship
and the of signing date
or not
Company agreement)
Total amount of guarantees incurred during the reporting period

0
(excluding those provided for subsidiaries)
Total balance of guarantee at the end of the reporting period (A)
0
(excluding those provided for subsidiaries)
Guarantees provided by the Company for subsidiaries
Total amount of guarantee provided for subsidiaries during the reporting
16,977,435,705.26
period
Total balance of guarantee provided for subsidiaries at the end of the
35,198,743,957.95
reporting period (B)
Total amount of guarantees provided by the Company (including those provided for subsidiaries)
Total amount of guarantee (A+B)
35,198,743,957.95
Proportion of the total amount of guarantee in the Company’s net assets
89.54%
(%)
Including:
Amount of guarantee provided for shareholders, actual controller and their
0
related parties (C)
Amount of debt guarantee provided directly or indirectly for guaranteed
28,326,302,028.51
parties with an asset liability ratio exceeding 70% (D)
Amount of the part where the total amount of guarantee exceeds 50% of
15,544,168,405.32
net assets (E)
Total amount of the above three guarantees (C+D+E) 43,870,470,433.83
Description of any possible joint and several liability for repayment of None
71 / 262
unexpired guarantees
Description of guarantee situation None
72 / 262
3. Other major contracts

On January 4, 2023, the 48th meeting of the fifth Board of Directors of the Company deliberated and
approved the Proposal on Signing a Major Sales Contract with POSCO Chemical Co., Ltd. and approved
to sign a Purchase Agreement with POSCO Chemical Co., Ltd. Under the terms of the Agreement,
Huayou Cobalt and its subsidiaries intend to supply a total of approximately 160,000 tons of ternary
precursor products of battery materials to POSCO Chemical Co., Ltd. from January 2023 to December
2025. Please refer to the Company’s Announcement numbered 2023-004 for details.
XII. Other major events

73 / 262
Section VII Change in Shares and Information of Shareholders

I. Change in share capital
(I) Table of change in shares
1. Table of change in shares
Unit: share
Before the change Increase/decrease in the change (+, -) After the change
Shares
Number of Proportion Shares newly Shares converted Number of Proportion
Others Subtotal
shares (%) issued granted from capital shares (%)
reserve
I. Restricted shares 18,002,264 1.13 2,035,800 -6,905,592 -4,869,792 13,132,472 0.82
1. Shares held by the state
2. Shares held by state-owned
legal persons
3. Shares held by other
18,002,264 1.13 2,035,800 -6,905,592 -4,869,792 13,132,472 0.82
domestic subjects
Including: shares held by
domestic non-state legal
persons
Shares held by domestic
18,002,264 1.13 2,035,800 -6,905,592 -4,869,792 13,132,472 0.82
natural persons
4. Shares held by overseas
subjects
Including: shares held by
74 / 262
overseas legal persons

Shares held by overseas
natural persons
II. Unrestricted shares 1,579,921,089 98.87 6,411,580 6,411,580 1,586,332,669 99.18
1. RMB ordinary shares 1,579,921,089 98.87 6,411,580 6,411,580 1,586,332,669 99.18
2. Shares listed at home and
held by foreign subjects
3. Shares listed overseas and
held by foreign subjects
4. Others
III. Total number of shares 1,597,923,353 100 2,035,800 -494,012 1,541,788 1,599,465,141 100
75 / 262
2. Description of changes in shares

1. It is agreed upon approval at the 43rd meeting of the fifth board of directors of the Company that,
in view of the fact that 3 incentive targets involved in the first grant of the restricted shares under the
2021 Restricted Shares Incentive Plan have been dismissed due to incompetence, 16 incentive targets
have left the Company for personal reasons, 1 incentive target has left the Company due to the
expiration of contract, and 1 incentive target has left the Company due to the expiration of the agreement
on reemployment after retirement, 1 incentive target involved in the first grant of the reserved part of the
restricted shares under the 2021 Restricted Shares Incentive Plan has left the Company for personal
reasons; 1 incentive target involved in the second grant of the reserved part of the restricted shares under
the 2021 Restricted Shares Incentive Plan has been dismissed due to incompetence; 3 incentive targets
involved in the first grant under the 2022 Restricted Shares Incentive Plan have been dismissed due to
incompetence, 11 incentive targets have left the Company for personal reasons, and 1 incentive target
has left the Company due to the expiration of the agreement on reemployment after retirement, all of
whom have become ineligible to participate in the incentive plan as incentive targets and no longer meet
the provisions of the Company’s shares incentive plan on incentive targets, the Company shall cancel a
total of 280,925 restricted shares which are granted yet not unlocked. See the Company’s Announcement
No. 2023-007 for details.
2. The Proposal on the Grant of the Reserved Part of the Restricted Shares to Incentive Targets and
the Proposal on the Adjustment of Matters Related to the Grant of the Reserved Part of the Restricted
Shares under the 2022 Restricted Shares Incentive Plan were approved at the 45th meeting of the fifth
board of directors of the Company. It is agreed that the Company shall grant 2,035,800 restricted shares
to 441 incentive targets at the grant price of RMB31.61/share. The registration of the grant of restricted
shares involved in the incentive plan was completed on January 18, 2023, and Shanghai Branch of China
Securities Depository and Clearing Corporation Limited issued the Certificate of Registration of
Securities Change. See the Company’s Announcement No. 2023-015 for details.
3. The Proposal on the Fulfillment of the Unlocking Conditions for the First Unlocking Period
Regarding the Second Grant of the Reserved Part of the Restricted Shares under the 2021 Restricted
Shares Incentive Plan was approved at the 49th meeting of the fifth board of directors of the Company.
It is agreed to apply for unlocking the restricted shares that meet the unlocking conditions. There were
31 incentive targets eligible for unlocking of restricted shares, and the total number of restricted shares
which can be unlocked was 56,940. The date of circulation of the restricted shares to be unlocked is
January 30, 2023. See the Company’s Announcement No. 2023-014 for details.
4. It is agreed upon approval at the 49th meeting of the fifth board of directors of the Company that,
in view of the fact that 4 incentive targets involved in the first grant under the 2021 Restricted Shares
Incentive Plan have left the Company for personal reasons, and 13 incentive targets have terminated the
labor relationship with the Company due to position transfer beyond their control, 7 incentive target
involved in the first grant of the reserved part under the 2021 Restricted Shares Incentive Plan have left
the Company for personal reasons, and 3 incentive targets have terminated the labor relationship with
the Company due to position transfer beyond their control, 1 incentive target involved in the second
grant of the reserved part of the restricted shares under the 2021 Restricted Shares Incentive Plan has
been prohibited from unlocking due to failure in the performance assessment, 7 incentive targets
involved in the first grant under the 2022 Restricted Shares Incentive Plan have left the Company for
76 / 262
personal reasons, and 2 incentive targets have terminated the labor relationship with the Company due to
position transfer beyond their control, all of whom have become ineligible to participate in the incentive
plan as incentive target and no longer meet the provisions of the Company’s shares incentive plan on
incentive targets, the Company shall cancel a total of 214,113 restricted shares which are granted yet
unlocked. See the Company’s Announcement No. 2023-034 for details.
5. Since September 2, 2022, Huayou convertible bonds can be convertible into shares of the
Company from September 2, 2022 to February 23, 2028. The cumulative number of shares converted
from January 1, 2023 to June 30, 2023 was 1,026. See Announcements No. 2023-043 and No. 2023-093.
6. The Proposal on the Fulfillment of the Unlocking Conditions for the Second Unlocking Period
Regarding the First Grant of the Restricted Shares under the 2021 Restricted Shares Incentive Plan and
the Proposal on the Fulfillment of the Unlocking Conditions for the First Unlocking Period Regarding
the First Grant of the Restricted Shares under the 2022 Restricted Shares Incentive Plan were approved
at the 3rd meeting of the sixth board of directors of the Company. It is agreed to apply for unlocking the
restricted shares that meet the unlocking conditions. There were 625 incentive targets under the 2021
Restricted Shares Incentive Plan eligible for unlocking of restricted shares, and the number of restricted
shares which can be unlocked and traded in the market was 2,389,374. There were 1,092 incentive
targets under the 2022 Restricted Shares Incentive Plan eligible for unlocking of restricted shares, and
the number of restricted shares which can be unlocked and traded in the market was 3,964,240. The date
of circulation of the restricted shares to be unlocked is July 11, 2023. See the Company’s Announcement
No. 2023-096 for details. The table of changes in shares above covers matters related to unlocking.
3. Impact of share changes after the reporting period and before the disclosure date of the
semi-annual report on financial indicators such as earnings per share, net assets per share, and the
like (if any)
4. Other contents deemed necessary by the Company or required to be disclosed by the

securities regulatory authority
(II) Change in restricted shares

Unit: Share
Number of
Number of Number of
Number of restricted
restricted restricted
restricted shares Reason for
Name of shares newly shares at the Date of
shares at the released sales
shareholder added during end of the unlocking
beginning of during the restriction
the reporting reporting
the period reporting
period period
period
Incentive Restricted
See the
targets of 6,045,039 0 0 5,766,579 shares
notes
the first incentive
77 / 262
grant of the plans

restricted
shares in
2021
Incentive
targets of
the grant of Restricted
the reserved shares See the
1,271,205 0 0 1,218,035
part of the incentive notes
restricted plans
shares in
2021
Incentive
targets of
the second
Restricted
grant of the
shares See the
reserved 198,120 56,940 0 135,772
incentive notes
part of the
plans
restricted
shares in
2021
Incentive
targets of
Restricted
the first
shares See the
grant of the 10,487,900 0 0 10,329,900
incentive notes
restricted
plans
stock in
2022
Incentive
targets of
the grant of Restricted
the reserved shares See the
0 0 2,035,800 2,035,800
part of the incentive notes
restricted plans
shares in
2022
Total 18,002,264 56,940 2,035,800 19,486,086 / /
For more information of the unlocking time of the restricted shares for the first grant in 2021,
please refer to the Announcement of Huayou Cobalt on the Results of the First Grant of Restricted
Shares to the Incentive Targets (Announcement No.: 2021-086) published by the Company on the
website of the Shanghai Stock Exchange (www.sse.com.cn) on July 10, 2021.
For more information of the unlocking time of the reserved part of the restricted shares for grant in
2021, please refer to the Announcement of Huayou Cobalt on the Results of the Grant of the Reserved
78 / 262
Part of the Restricted Shares to the Incentive Targets (Announcement No.: 2021-137) published by the
Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on November 16, 2021.
For more information of the unlocking time of the reserved part of the restricted shares for the
second grant in 2021, please refer to the Announcement of Huayou Cobalt on the Results of the Second
Grant of the Reserved Part of the Restricted Shares to the Incentive Targets (Announcement No.:
2022-017) published by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn)
on January 29, 2022.
For more information of the unlocking time of the restricted shares for the first grant in 2022 please
refer to the Announcement of Huayou Cobalt on the Results of the First Grant of Restricted Shares to the
Incentive Targets (Announcement No.: 2022-121) published by the Company on the website of the
Shanghai Stock Exchange (www.sse.com.cn) on July 12, 2022.
For more information of the unlocking time of the reserved part of the restricted shares for grant in 2022,
please refer to the Announcement of Huayou Cobalt on the Results of the Grant of the Reserved Part of
the Restricted Shares to the Incentive Targets (Announcement No.: 2023-015) published by the
Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on January 20, 20213.
II. Information of shareholders

(I) Total number of shareholders
Total number of ordinary shareholders by the end of 212,729
the reporting period
Total number of preferred shareholders with resumed 0
voting rights as of the end of the reporting period
(II) Shareholding status of top 10 shareholders and top 10 shareholders holding tradable shares
(or shareholders holding shares without sales restrictions) as of the end of the reporting
period
Unit: Share
Shareholding status of top 10 shareholders
Increase / Pledge, mark or
Number Number of
decrease of freezing
of shares shares
shares Proportion Nature of
Full name of shareholder held at the with sales
during the (%) Share Number shareholder
end of the restrictions
reporting status of shares
period held
period
Domestic
Huayou Holdings Group Co., Ltd 0 260,313,967 16.28 0 Pledge 172,379,995 non-state-ow
ned
Domestic
Chen Xuehua 0 110,006,461 6.88 0 Pledge 58,500,000 natural
person
Hong Kong Securities Clearing
-24,049,654 87,531,589 5.47 0 None 0 Other
Co., Ltd.
79 / 262
Hangzhou Youyou Enterprise

Management Partnership -20,000,000 54,831,293 3.43 0 None 0 Other
(Limited Partnership)
China Construction Bank
Corporation - Huaxia Energy
4,427,041 24,855,783 1.55 0 None 0 Other
Innovation Equity Securities
Investment Fund
CITIC Securities Co., Ltd 9,711,671 17,354,438 1.09 0 None 0 State-owned
China Postal Savings Bank Co.,
Ltd. - Dongfang Growth Medium
- and Small-Cap Hybrid 4,063,969 15,850,696 0.99 0 None 0 Other
Open-ended Securities
Investment Fund
Bank of China Limited - UBS
SDIC New Energy Hybrid 2,232,587 11,756,131 0.74 0 None 0 Other
Securities Investment Fund
Agricultural Bank of China
Limited - Guotai Intelligent
-26,500 10,602,329 0.66 0 None 0 Other
Automobile Equity Securities
Investment Fund
Domestic
Yu Airu -1,173,820 9,301,340 0.58 0 None 0 natural
person
Shareholding status of the top 10 shareholders holding shares without sales restrictions
Number of tradable shares without Class and number of shares
Name of shareholder
sales restrictions held Class Number
RMB ordinary
Huayou Holdings Group Co., Ltd 260,313,967 260,313,967
shares
RMB ordinary
Chen Xuehua 110,006,461 110,006,461
shares
RMB ordinary
Hong Kong Securities Clearing Co., Ltd. 87,531,589 87,531,589
shares
Hangzhou Youyou Enterprise Management RMB ordinary
54,831,293 54,831,293
Partnership (Limited Partnership) shares
China Construction Bank Corporation - Huaxia
RMB ordinary
Energy Innovation Equity Securities Investment 24,855,783 24,855,783
shares
Fund
RMB ordinary
CITIC Securities Co., Ltd 17,354,438 17,354,438
shares
China Postal Savings Bank Co., Ltd. - Dongfang
RMB ordinary
Growth Medium Cap Hybrid Open Securities 15,850,696 15,850,696
shares
Investment Fund
80 / 262
Bank of China Limited - UBS SDIC New Energy RMB ordinary

11,756,131 11,756,131
Hybrid Securities Investment Fund shares
Agricultural Bank of China Limited - Guotai
RMB ordinary
Intelligent Automobile Equity Securities 10,602,329 10,602,329
shares
Investment Fund
RMB ordinary
Yu Airu 9,301,340 9,301,340
shares
Related relationship or concerted action of Among the shareholders mentioned above, Huayou Holdings and Chen Xuehua are
the above shareholders persons acting in concert.
Number of shares held by the top 10 shareholders subject to sales restrictions and details of the sales
restrictions
Unit: Share
Trading of shares with
Number sales restrictions
of shares Number of
Name of shareholder
S/N with sales tradable Sales restrictions
subject to sales restrictions Tradable
restriction shares
date
s held newly
added
1 Equity incentive
Chen Hongliang 422,500
sales restriction
2 Equity incentive
Fang Qixue 266,500
sales restriction
3 Equity incentive
Zhang Binghai 188,500
sales restriction
4 Equity incentive
Xu Wei 133,250
sales restriction
5 Equity incentive
Chen Yaozhong 133,250
sales restriction
6 Equity incentive
Sun Qi 129,400
sales restriction
7 Equity incentive
Zhou Qifa 106,600
sales restriction
8 Equity incentive
Wu Mengtao 106,600
sales restriction
9 Equity incentive
Fang Yuan 106,600
sales restriction
10 Equity incentive
Hu Yanhui 106,600
sales restriction
Related relationship or concerted It is unknown whether there is a related relationship
action of the above shareholders between the aforementioned shareholders or whether
they belong to persons acting in concert.
81 / 262
(III) Strategic investors or general legal persons become the top 10 shareholders due to the
placement of new shares
III. Directors, supervisors and senior officers

(I) Changes in the shareholding of the existing directors, supervisors, and senior officers or those
resigned during the reporting period
Other information
(II) Equity incentives granted to directors, supervisors and senior officers during the reporting
period
(III) Other information

IV. Change in the controlling shareholder or the actual controller

82 / 262
Section VIII Preference Shares

83 / 262
Section IX Bonds
I. Enterprise bonds, corporate bonds, and non-financial corporate debt financing
instruments
(I) Enterprise bonds

(II) Corporate bonds

(III) Debt financing instruments for non-financial enterprises in the interbank bond market
1. Basic information of debt financing instruments for non-financial enterprises

Wheth
er
Method of there is
Investor
Interest repayment of Trading a risk
Name Bond Issue Value Maturity Bond Place of suitability
Bond name Rate principal and mechanis of
abbreviation code date date date balance trading arrangement
(%) payment of m termin
(if any)
interest ation
of
trading
Ultra-Short
Term
Financing
Bonds
(Phase II) 22 Huayou
Repayment Dialogue
of Zhejiang Cobalt
of principal Institutional quotation,
Huayou SCP002
0122837 2022-1 2022-10 700,000, and interest Interban investors in anonymo
Cobalt Co., (Science and 2023-7-28 3.91 No
85.IB 0-27 -31 000 at one time k market the interbank us
Ltd. in Technology
upon market quotation,
2022 Innovation
maturity inquiry
(Science Notes)
and
Technology
Innovation
Notes)
Ultra-Short 23 Huayou 0123811 2023-3 2023-3- 2023-12-1 700,000, 4.68 Repayment Interban Institutional Dialogue No
84 / 262
Term Cobalt 10.IB -20 22 5 000 of principal k market investors in quotation,

Financing SCP001 and interest the interbank anonymo
Bonds (Science and at one time market us
(Phase I) of Technology upon quotation,
Zhejiang Innovation maturity inquiry
Huayou Notes)
Cobalt Co.,
Ltd. in
2023
(Science
and
Technology
Innovation
Notes)
Countermeasures to the risk of termination of trading

Overdue bonds
Overdue debts
2. Trigger and enforcement of the issuer or investor option clauses and investor protection
clauses
3. Adjustment of credit rating result

Other information
None
4. Implementation and change of guarantees, debt repayment plans, and other debt
repayment guarantee measures during the reporting period and their impact
Other information
None
5. Other information of debt financing instruments for non-financial enterprises

85 / 262
(IV) Situation where the Company’s losses in the consolidated statements exceeded 10% of
its net assets at the end of the previous year during the reporting period
(V) Major accounting data and financial indicators

Increase/decrease
End of the compared with Reason for the
Key indicators End of last year
reporting period the end of last change
year (%)
Current ratio 0.87 0.93 -6.45
Quick ratio 0.56 0.60 -5.78
Asset-liability ratio (%) 68.41 70.45 -2.90
Increase/decrease
The reporting
The same period compared with Reason for the
period (January
of last year the same period change
to June)
last year (%)
Net profit after deducting
non-recurring profits and 1,839,200,954.15 2,192,290,161.57 -16.11
losses
EBITDA to total debt
0.12 0.14 -12.12
ratio
Mainly due to an
increase in interest
expenses caused by
Interest coverage ratio 3.23 6.56 -50.73 the increase in
interest-bearing
debts in the current
period
Mainly due to an
increase in net cash
Cash interest coverage
1.24 -1.65 -174.97 flow from operating
ratio
activities in the
current period
Mainly due to an
increase in interest
expenses caused by
EBITDA interest coverage
4.17 7.74 -46.15 the increase in
ratio
interest-bearing
debts in the current
period
Loan repayment rate (%) 100 100 0
86 / 262
Interest coverage ratio (%) 100 100 0
II. Convertible corporate bonds

(I) Issuance of convertible bonds
On February 24, 2022, with the approval of the document numbered “ZJXK [2022] No. 209”
issued by the China Securities Regulatory Commission, the Company publicly issued 76 million
convertible corporate bonds with a face value of RMB 100 each and a total issue amount of RMB
7.6 billion. With the approval of the Shanghai Stock Exchange Self-Regulation Decision [2022]
No. 71, the Company’s convertible bonds of RMB 7.6 billion have been listed and traded on the
Shanghai Stock Exchange since March 23, 2022, with the bond abbreviation “Huayou Convertible
Bonds” and the bond code “113641”.
(II) Convertible bond holders and guarantors during the reporting period
Name of convertible corporate bonds Huayou Convertible Bonds
Number of holders of convertible bond
46,425
as at the end of the period
Guarantor of the Company’s
None
convertible bonds
Significant changes in the
profitability, assets and credit Not applicable
standing of the guarantor
Top 10 holders of convertible corporate bonds are as follows:
Amount of convertible
Name of holder of convertible
corporate bonds held as at Holding ratio (%)
corporate bonds
the end of the period (Yuan)
Huayou Holdings Group Co., Ltd 1,245,903,000 16.40
Chen Xuehua 478,508,000 6.30
Basic Endowment Insurance Fund 102 2.73
207,598,000
Portfolio
Industrial Bank Co., Ltd. - Tianhong 2.56
Yongli Bond Securities Investment 194,768,000
Fund
National Social Security Fund 414 130,000,000 1.71
Taiping Pension Co., Ltd. - Taiping 1.63
123,630,000
Jinshi Bond Investment Portfolio
Bank of China Limited - E Fund Stable 1.55
118,087,000
Yield Bond Securities Investment Fund
MERRILL LYNCH 1.32
100,000,000
INTERNATIONAL
Industrial and Commercial Bank of 1.29
China Limited - Huitianfu Convertible 98,107,000
Bonds Securities Investment Fund
87 / 262
Taiping Asset Management - Industrial 1.21

Bank - Taiping Asset Ruyi No. 51 92,289,000
Asset Management Product
(III) Change in convertible corporate bonds during the reporting period

Name of Increase/decrease in the change
convertible Before the After the
Conversion
corporate change Redemption Resale change
into shares
bonds
Huayou 7,598,838,000 90,000 7,598,748,000
Convertible
Bonds
(IV) Cumulative amount of convertible corporate bonds converted into shares during the
reporting period
Name of convertible corporate bonds Huayou Convertible Bonds

Amount of convertible corporate bonds converted 90,000
into shares during the reporting period (Yuan)
Number of shares converted from convertible 1,026
corporate bonds during the reporting period
Cumulative number of shares converted from 14,756
convertible corporate bonds
Proportion of the cumulative number of shares 0.00092
converted in the total number of issued shares of
the Company before the conversion (%)
Amount of convertible corporate bonds that are 7,598,748,000
not converted into shares (Yuan)
Proportion of convertible corporate bonds that are 99.98353
not converted into shares in the total issued
convertible bonds (%)
(V) Previous adjustments in conversion prices

Name of convertible
Huayou Convertible Bonds
corporate bonds
Date of
Adjusted
conversion Disclosure Description of conversion price
conversion Disclosure media
price date adjustment
price
adjustment
June 8, 84.58 June 1, www.sse.com.cn, In view of the implementation of the
88 / 262
2022 2022 Shanghai 2021 Equity Allocation by the Company

Securities News, in June 2022, the conversion price of the
China Securities Huayou Convertible Bonds was adjusted
Journal, to RMB 84.58 per share in accordance
Securities Times, with the relevant provisions of the
Securities Daily Prospectus. For more information, please
refer to the Announcement of Huayou
Cobalt on the Adjustment of Conversion
Price of the Convertible Bonds in 2021
Equity Allocation (2022-085) published
by the Company.
In view of the completion of the
registration of the first grant of restricted
shares in 2022 by the Company in July
www.sse.com.cn,
2022, the conversion price of the Huayou
Shanghai
Convertible Bonds was adjusted to RMB
Securities News
July 13, July 13, 84.24 per share in accordance with the
84.24 China Securities
2022 2022 relevant provisions of the Prospectus.
Journal
For more information, please refer to the
Securities Times
Announcement of Huayou Cobalt on the
Securities Daily
Adjustment of the Conversion Price of
“Huayou Convertible Bonds”
(2022-122).
repurchase and cancellation of some
restricted shares by the Company in
September 2022, the conversion price of
www.sse.com.cn,
the Huayou Convertible Bonds was
Shanghai
adjusted to RMB 84.25 per share in
Securities News
September September accordance with the relevant provisions
84.25 China Securities
21, 2022 20, 2022 of the Prospectus. For more information,
Journal
please refer to the Announcement of
Securities Times
Huayou Cobalt on Completion of the
Securities Daily
Repurchase and Cancellation of Some
Restricted Shares and Adjustment of the
Conversion Price of the Convertible
Bonds (2022-149).
www.sse.com.cn, In view of the completion of the
Shanghai repurchase and cancellation of some
Securities News restricted shares by the Company in
January January
84.26 China Securities January 2023, the conversion price of the
12, 2023 11, 2023
Journal Huayou Convertible Bonds was adjusted
Securities Times to RMB 84.26 per share in accordance
Securities Daily with the relevant provisions of the
89 / 262
Prospectus. For more information, please

refer to the Announcement of Huayou
Cobalt on Completion of the Repurchase
and Cancellation of Some Restricted
Shares and Adjustment of the Conversion
Price of the Convertible Bonds
(2023-013).
registration of the grant of the reserved
part of the restricted shares in 2022 by
www.sse.com.cn, the Company in January 2023, the
Shanghai conversion price of the Huayou
Securities News, Convertible Bonds was adjusted to RMB
January January
84.19 China Securities 84.19 per share in accordance with the
30, 2023 20, 2023
Journal, relevant provisions of the Prospectus.
Securities Times, For more information, please refer to the
Securities Daily Announcement of Huayou Cobalt on the
(2023-016).
registration of the grant of the reserved
part of the restricted shares in 2022 by
www.sse.com.cn, the Company in March 2023, the
Shanghai conversion price of the Huayou
Securities News, Convertible Bonds was adjusted to RMB
March 28, March 25,
84.20 China Securities 84.20 per share in accordance with the
2023 2023
Journal, relevant provisions of the Prospectus.
Securities Times, For more information, please refer to the
Securities Daily Announcement of Huayou Cobalt on the
(2023-037).
In view of the implementation of the
2022 Equity Allocation by the Company
www.sse.com.cn, in June 2023, the conversion price of the
Shanghai Huayou Convertible Bonds was adjusted
Securities News, to RMB 84.00 per share in accordance
June 1, May 26,
84.00 China Securities with the relevant provisions of the
2023 2023
Journal, Prospectus. For more information, please
Securities Times, refer to the Announcement of Huayou
Securities Daily Cobalt on the Adjustment of Conversion
Price of the Convertible Bonds in 2022
Equity Allocation (2022-074) published
90 / 262
by the Company.
In view of the Company’s completion of the
GDR issuance in July 2023, the conversion
www.sse.com.cn,
price of the Huayou Convertible Bonds
Shanghai
was adjusted to RMB 81.53 per share in
Securities News,
July 7, accordance with the relevant provisions
81.53 July 6, 2023 China Securities
2023 of the Prospectus. For more information,
Journal,
please refer to the Announcement on the
Securities Times,
Securities Daily
Huayou Convertible Bonds (2023-095)
disclosed by the Company for details.
Latest conversion price 81.53
as of the end of the
reporting period
(VI) The Company’s liabilities, credit changes, and cash arrangements for debt repayment in
future years
1. Liabilities: As of June 30, 2023, the Company’s total liabilities were RMB 85,111,639,969.01,
including current liabilities of RMB 57,784,871,470.11 and non-current liabilities of RMB
27,326,768,498.90.
2. Credit status: On June 20, 2023, China Lianhe Credit Rating Co., Ltd. issued a rating report
numbered “[Lian He [2023] No. 4408]”.As stated in the report, the long-term credit rating of the
Company’s main body is “AA+” , and the credit rating of “Huayou Convertible Bonds” is “AA+” ,
with a stable rating outlook. The rating result has not changed compared to the previous one.
3. Cash arrangement for debt repayment in future years: The Company’s funds for repaying the
principal and interest of convertible bonds mainly come from the net cash flow generated from
operating activities. The Company will allocate funds reasonably based on the situation of
conversion of convertible bonds to shares and the maturity of convertible bonds, ensuring timely
payment of interest and repayment of principal.
(VII) Other information of convertible bonds

None
91 / 262
Section X Financial Report

I. Auditors’ report
II. Financial statements

Consolidated Balance Sheet
June 30, 2023
Prepared by: Zhejiang Huayou Cobalt Co., Ltd
Item Note June 30, 2023 December 31, 2022
Current assets:
Cash and bank balances 15,431,478,002.01 15,435,775,480.67
Deposit reservation for balance
Loans to banks and other
financial institutions
Held-for-trading financial assets 269,558,655.09 251,991,490.83
Derivative financial assets 922,943,639.96 608,711,611.68
Notes receivable
Accounts receivable 8,811,376,284.94 8,036,948,469.35
Financing funds receivables 2,158,160,473.89 2,437,994,963.68
Advances to suppliers 1,551,014,862.79 1,634,719,864.00
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 499,154,860.53 580,628,313.49
Including: interests receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 17,663,828,303.76 17,692,022,676.50
Contract assets
Held-for-sale assets
Non-current assets maturing
within one year
Other current assets 2,825,809,587.48 2,891,137,816.94
Total current assets 50,133,324,670.45 49,569,930,687.14
Non-current assets:
Disbursement of loans and
advances
Debt investment
Other debt investments
Long-term receivables 514,561,943.41 486,294,854.29
Long-term equity investment 9,457,589,882.37 7,914,624,818.43
Other equity instrument
42,647,182.81 42,647,182.81
investments
Other non-current financial
547,046,515.08 527,509,366.89
assets
Investment real estates -
Fixed assets 29,852,266,203.93 26,217,069,544.01
Construction in progress 23,965,567,757.69 14,281,929,827.36
Productive biological assets
92 / 262
Oil and natural gas assets

Right of use assets 124,852,226.19 122,205,035.22
Intangible assets 4,049,744,363.25 4,066,801,265.80
Development expenditures
Goodwill 457,383,702.28 458,415,919.67
Long-term deferred expenses 74,600,724.58 79,311,504.95
Deferred income tax assets 888,256,327.71 830,685,916.41
Other non-current assets 4,312,949,574.51 5,994,992,788.87
Total non-current assets 74,287,466,403.81 61,022,488,024.71
Total assets 124,420,791,074.26 110,592,418,711.85
Current liabilities:
Short-term borrowings 14,911,818,492.19 12,019,822,703.67
Borrowings from central bank
Loans from banks and other
Held-for-trading financial
82,840,808.91 40,024,798.40
liabilities
Derivative financial liabilities
Notes payable 10,226,193,813.10 10,782,231,308.54
Accounts payable 15,755,211,098.30 14,610,891,201.30
Advances from customers 492,117,670.03
Contract liabilities 2,241,111,527.44 2,359,463,860.52
Financial assets sold under
repurchase agreements
Absorption of customer and
interbank deposits
Acting trading securities
Acting underwriting securities
Employee compensations
604,394,873.25 685,740,642.95
payable
Taxes and surcharges payable 532,520,031.88 542,406,489.43
Other payables 4,411,853,636.24 4,612,710,195.77
Including: interests payable -
Dividends payable
Handling charges and
commissions payable
Reinsurance accounts payable
Held-for-sales liabilities
Non-current liabilities maturing
7,326,622,299.18 5,757,928,311.87
within one year
Other current liabilities 1,692,304,889.62 1,546,983,360.95
Total current liabilities 57,784,871,470.11 53,450,320,543.43
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings 13,885,263,492.60 11,927,781,731.79
93 / 262
Bonds payable 6,467,040,778.52 6,323,799,832.42

Including: preference shares
Perpetual bonds
Lease liabilities 71,707,965.22 57,070,601.81
Long-term payables 5,723,208,619.59 5,155,378,248.88
Long-term employee
compensations payable
Estimated liabilities 59,113,770.57 42,977,538.13
Deferred income 681,252,837.57 592,727,660.93
Deferred income tax liabilities 439,181,034.83 359,884,559.27
Other non-current liabilities
Total non-current liabilities 27,326,768,498.90 24,459,620,173.23
Total liabilities 85,111,639,969.01 77,909,940,716.66
Owners’ equity (or shareholders’ equity):
Paid-in capitals (or share
1,599,465,141.00 1,599,678,228.00
capitals)
Other equity instruments 1,490,095,317.40 1,490,112,966.16
Perpetual bonds
Capital reserves 10,632,269,087.03 10,398,505,364.59
Less: treasury shares 617,567,337.30 631,014,574.20
Other comprehensive income 1,493,056,438.34 776,405,562.87
Special reserves 36,306,934.11 27,349,451.51
Surplus reserves 328,198,605.34 328,198,605.34
Generic risk reserve
Undistributed profits 13,669,170,763.22 11,903,922,527.16
Total equity attributable to
owners (or shareholders) of the 28,630,994,949.14 25,893,158,131.43
parent company
Minority equity 10,678,156,156.11 6,789,319,863.76
Total owners’ equity (or
39,309,151,105.25 32,682,477,995.19
shareholders’ equity)
Total liabilities and owners’ equity
124,420,791,074.26 110,592,418,711.85
(or shareholders’ equity)
Person in charge of the Company: Chen Xuehua; Accounting Principal: Wang Jun; Head of the
Accounting Dept.: Ma Xiao
Balance Sheet of the Parent Company

June 30, 2023
Prepared by: Zhejiang Huayou Cobalt Co., Ltd (***edits are the same as last section, if needed)
Item Note June 30, 2023 December 31, 2022
Current assets:
Current assets: 1,594,266,033.78 1,060,380,190.39
Cash and bank balances 59,628,852.00
94 / 262
assets
Derivative financial assets 658,000,000.00
Notes receivable 275,731,755.20 450,631,045.29
Accounts receivable 31,718,448.57 37,909,033.79
Financing funds receivables 3,343,322,010.80 2,477,701,869.00
Advances to suppliers 8,661,902,423.95 6,009,732,975.91
Other receivables
Including: interests
385,615,050.00
receivable
Dividends
275,569,512.45 578,996,170.53
receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets maturing
24,027,205.49
within one year
Other current assets 14,242,139,036.75 11,297,378,490.40
Total current assets 1,594,266,033.78 1,060,380,190.39
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 367,308,368.83 354,030,815.35
Long-term equity investment 24,995,089,178.58 23,758,296,478.80
Other equity instrument
36,894,737.00 36,894,737.00
investment
Other non-current financial
6,573,600.00 6,573,600.00
assets
Investment real estates
Fixed assets 715,377,903.64 664,839,623.14
Construction in progress 39,291,556.24 27,039,469.17
Productive biological assets
Oil and natural gas assets
Right of use assets 32,321,907.89 31,365,085.85
Intangible assets 37,302,226.16 35,492,883.22
Development expenses
Goodwill
Long-term deferred expenses 60,045,377.66 66,201,105.82
Deferred income tax assets 116,790,615.45 38,547,121.31
Other non-current assets 17,618,556.71 88,198,937.75
Total non-current assets 26,424,614,028.16 25,107,479,857.41
Total assets 40,666,753,064.91 36,404,858,347.81
Current liabilities:
Short-term borrowings 4,541,853,724.95 4,786,038,424.00
1,403,712.00
liabilities
Derivative financial liabilities
Notes payable 3,825,121.12 11,280,296.16
Accounts payable 1,005,746,474.45 833,373,787.00
Advances from customers 492,095,800.00
Contract liabilities 1,391,421,877.58 1,124,328,328.88
Employee compensations
76,288,782.02 123,503,427.43
payable
95 / 262
Taxes and surcharges payable 44,120,015.51 18,438,294.21

Other payables 7,193,600,566.99 3,989,906,762.99
Including: interests payable
Dividends payable
Held-for-sales liabilities
Non-current liabilities
1,235,543,848.07 571,598,176.60
maturing within one year
Other current liabilities 1,539,456,526.70 1,430,228,645.44
Total current liabilities 17,031,856,937.39 13,382,195,654.71
Non-current liabilities:
Long-term borrowings 2,056,280,679.62 1,461,760,582.26
Bonds payable 6,467,040,778.52 6,323,799,832.42
Perpetual bonds
Lease liabilities 28,086,031.35 21,315,968.37
Long-term payables 138,666,666.68 208,000,000.01
Long-term employee
compensations payable
Estimated liabilities
Deferred income 8,283,037.73 8,870,967.61
Deferred income tax
13,741,901.91 5,220,284.38
liabilities
Other non-current liabilities
Total non-current liabilities 8,712,099,095.81 8,028,967,635.05
Total liabilities 25,743,956,033.20 21,411,163,289.76
Owners’ equity (or shareholders’ equity):
Paid-in capitals (or share
1,599,465,141.00 1,599,678,228.00
capitals)
Other equity instruments 1,490,095,317.40 1,490,112,966.16
Perpetual bonds
Capital reserves 10,575,921,251.42 10,345,832,528.98
Less: treasury shares 617,567,337.30 631,014,574.20
Other comprehensive income -40,936,153.44 -39,949,268.37
Special reserves
Surplus reserves 328,198,605.34 328,198,605.34
Undistributed profits 1,587,620,207.29 1,900,836,572.14
Total owners’ equity (or
14,922,797,031.71 14,993,695,058.05
shareholders’ equity)
Total liabilities and owners’
40,666,753,064.91 36,404,858,347.81
equity (or shareholders’ equity)
Person in charge of the Company: Chen Xuehua; Accounting Principal: Wang Jun; Head of the
Consolidated Income Statement

January-June 2023
Item Note First half of 2023 Second half of 2022
I. Total operating income 33,345,537,519.76 31,018,304,267.06
Including: operating income 33,345,537,519.76 31,018,304,267.06
96 / 262
Interests income
Premiums earned
Income from handling
charges and commissions
II. Total operating cost 31,070,998,249.40 27,329,531,676.40
Including: operating cost 28,372,311,948.40 25,057,734,232.15
Interest expenditure
Handling charges and
commissions expenses
Surrender value (*not sure
– Refund of insurance premiums
Net amount of
compensation payout
Withdrawal of insurance
liability reserve
Policy dividend payment
Reinsurance costs
Other taxes and surtaxes 220,240,292.44 285,398,869.80
Selling expenses 64,306,725.80 33,257,395.17
1,115,686,302.41 760,962,088.23
expenses
R&D expenses 759,738,617.49 839,734,971.25
Finance expenses 538,714,362.86 352,444,119.80
Including: interests expense 1,014,387,408.71 457,399,824.85
Interests income 118,381,450.87 52,888,581.03
Plus: other income 156,153,655.93 151,127,484.11
Investment income (“-” for
788,520,751.65 570,759,901.75
losses)
Including: investment income
899,796,221.85 651,592,731.71
from associates and joint ventures
Income from
de-recognition of financial assets
measured at amortized cost
Foreign exchange gains (“-” for
losses)
Income from net exposure
hedging (“-” for losses)
Gains from the changes in fair
131,980,619.08 -96,073,107.00
value (“-” for losses)
Losses from credit impairment
-71,078,135.82 -218,340,909.98
(“-” for losses)
Losses from asset impairment
-19,818,834.87 -537,000,710.94
Income from disposal of assets
-3,019,116.47 9,658.92
III. Operating profits (“-” for losses) 3,257,278,209.86 3,559,254,907.52
Plus: non-operating income 4,640,028.84 6,159,023.72
Less: non-operating expense 25,074,036.21 3,586,216.13
IV. Total profits (“-” for total losses) 3,236,844,202.49 3,561,827,715.11
Less: income tax expense 289,596,293.99 538,663,395.17
97 / 262
V. Net profit (“-” for net losses) 2,947,247,908.50 3,023,164,319.94

(I) Classified by operating sustainability
1. Net profit from continued 2,947,247,908.50 3,023,164,319.94
operation (“-” for net losses)
2. Net profit from discontinued
(II) Classified by ownership
1. Net profit attributable to the
shareholders of the parent company 2,085,104,942.66 2,255,513,730.90
(“-” for net losses)
2. Minority interests income (“-”
862,142,965.84 767,650,589.04
for net losses)
VI. Other comprehensive income, net
948,113,037.45 708,114,592.36
of tax
(I) Other comprehensive income,
net of tax attributable to owners of the 716,650,875.47 646,371,226.72
parent company
1. Other comprehensive income
that cannot be reclassified into profit
or loss
(1) Changes in re-measurement of
the defined benefit plan
(2) Other comprehensive income
that cannot be transferred to profits or
losses under the equity method
(3) Changes in fair value of other
equity instruments investment
that will be reclassified into profits or 716,650,875.47 646,371,226.72
loss
(1) Other comprehensive income
that can be transferred to profits or 34,961,428.08 86,996,115.43
(2) Changes in the fair value of
investment in other creditors’ rights
(3) Amount of financial assets
reclassified into other comprehensive
income
(4) Provision for credit impairment
of investment in other creditors’ rights
(5) Cash flow hedging reserves
(6) Differences arising from
translation of foreign currency 681,689,447.39 559,375,111.29
financial statements
(7) Others
(II)Other comprehensive income,
net of tax attributable to minority 231,462,161.98 61,743,365.64
shareholders
VII. Total comprehensive income 3,895,360,945.95 3,731,278,912.30
(I) Total comprehensive income 2,801,755,818.13 2,901,884,957.62
98 / 262
attributable to owners of the parent

company
(II) Total comprehensive income
1,093,605,127.82 829,393,954.68
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share
1.32 1.41
(Yuan/share)
(II) Diluted earnings per share
1.32 1.35
(Yuan/share)
In the event of business combination under the common control during the current period, net profit of
the combined party recognized before the combination was RMB 0.00, and net profit of the combined
party recognized in the prior period was RMB 0.00.
Person in charge of the Company: Chen Xuehua Accounting Principal: Wang Jun Head of the
Income Statement of the Parent Company

January-June 2023
I. Operating income 2,145,166,339.24 2,775,292,830.83
Less: operating cost 1,801,558,276.35 1,968,879,239.46
Taxes and surcharges 5,109,243.69 9,823,247.92
Selling expenses 9,668,601.51 6,914,979.18
426,891,225.74 241,290,188.22
expenses
R&D expenses 77,601,559.44 91,352,842.37
Financial expenses 377,255,262.77 159,197,601.93
Including: interests expense 501,000,634.50 204,951,279.89
Plus: other income 11,140,561.86 15,144,568.87
Investment income (“-” for
454,315,651.42 236,939,068.42
losses)
Including: investment income
-33,479,789.86 13,325,333.53
from associates and joint ventures
Income from
de-recognition of financial assets
measured at amortized cost (“-” for
losses)
Income from net exposure
hedging (“-” for losses)
Gains from the changes in fair
61,032,564.00 5,384,944.48
value (“-” for losses)
Losses from credit impairment
2,472,086.69 -4,182,796.83
Losses from asset impairment
-38,447,022.05 -173,990,974.99
Income from disposal of assets
59,667.34 6,074,582.66
II. Operating profits (“-” for losses) -62,344,321.00 383,204,124.36
Plus: non-operating income 1,233,536.69 755,477.96
99 / 262
Less: non-operating expense 1,970,750.55 427,953.50

III. Total profits (“-” for total losses) -63,081,534.86 383,531,648.82
Less: income tax expense -69,721,876.61 38,051,958.39
IV. Net profit (“-” for net losses) 6,640,341.75 345,479,690.43
(I) Net profit from continued
6,640,341.75 345,479,690.43
(II) Net profit from discontinued
V. Net amount of other comprehensive -986,885.07
income after tax
(I) Other comprehensive income
that cannot be reclassified into profit
or loss
1. Changes in re-measurement of
the defined benefit plan
2. Other comprehensive income that
cannot be transferred to profits or
3. Changes in fair value of other
equity instruments investment
4. Changes in the fair value of the
company’s own credit risk
(II) Other comprehensive income -986,885.07
that will be reclassified into profits or
loss
1. Other comprehensive income that -986,885.07
can be transferred to profits or losses
under the equity method
2.Changes in the fair value of
investment in other creditors’ rights
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of investment in other creditors’ rights
5. Cash flow hedging reserves
6. Translation differences of foreign
currency financial statements
7. Others
VI. Total comprehensive income 5,653,456.68 345,479,690.43
VII. Earnings per share:
(I) Basic earnings per share
(Yuan/share)
(II) Diluted earnings per share
(Yuan/share)
Consolidated Statement of Cash Flows

January-June 2023
100 / 262
I. Cash flows from operating activities:

Cash received from sales of
35,882,307,593.59 29,442,024,183.19
goods and provision of services
Net increase in deposits from
customers and placements from
corporations in the same industry
Net increase in borrowings
from central bank
Net increase in loans from other
Cash received from insurance
premium on original insurance
contracts
Net cash received from
re-insurance businesses
Net increase in deposits and
investments from policyholders
Cash received from interests,
handling charges and
commissions
Net increase in loans from
banks and other financial
institutions
Net capital increase in
repurchase business
vicariously traded securities
Refunds of taxes and
2,376,301,761.92 1,016,675,740.71
surcharges
Cash received from other
1,398,121,747.10 1,836,524,859.88
operating activities
Sub-total of cash inflows from
39,656,731,102.61 32,295,224,783.78
Cash paid for goods purchased
33,510,300,357.28 27,746,947,519.83
and services received
Net increase in loans and
advances to customers
Net increase in deposits in
central bank and other banks and
Cash paid for original insurance
contract claims
Net increase in loans to banks
and other financial institutions
Cash paid for interests,
handling charges and
commissions
Cash paid for policy dividends
Cash paid to and on behalf of
2,007,767,782.44 1,315,903,332.82
employees
Cash paid for taxes and
1,360,665,441.25 918,817,632.55
surcharges
Other cash paid related to
983,520,844.09 3,370,967,357.10
Sub-total of cash outflows from 37,862,254,425.06 33,352,635,842.30
101 / 262
Net cash flows from operating
1,793,184,070.04 -1,057,411,058.52
activities
II. Cash flows from investing activities
Cash received from disposal of
250,000,000.00 909,561,900.00
investments
Cash received from returns on
295,582,354.35 104,505,589.35
investments
Net cash received from disposal
of fixed assets, intangible assets 1,248,553.06 469,420.12
and other long-term assets
Net cash received from disposal
of subsidiaries and other business 3,351,750.00
units
1,625,313,208.08 521,771,151.83
investing activities
2,172,144,115.49 1,539,659,811.30
Cash paid to acquire and
construct fixed assets, intangible 8,660,052,911.13 6,882,852,253.08
assets and other long-term assets
Cash paid for investments 1,054,022,634.07 2,819,753,383.34
Net increase in secured loans
Net cash paid for the
acquisition of subsidiaries and 344,886,898.18 2,749,910,763.96
other business entities
Cash paid for other investing
1,050,684,078.64 1,161,826,755.42
activities
Sub-total of cash outflows from
11,109,646,522.02 13,614,343,155.80
Net cash flows from investing
-8,937,502,406.53 -12,074,683,344.50
activities
III. Cash flows from financing activities:
Cash received from investors 2,798,906,164.53 657,531,343.63
Including: cash received by
subsidiaries from investments by 2,798,906,164.53 308,503,632.63
minority shareholders
Cash received from borrowings 15,830,149,183.08 24,908,575,188.69
3,551,304,026.51 5,302,982,688.88
financing activities
22,180,359,374.12 30,869,089,221.20
Cash paid for debts repayments 10,702,680,949.03 8,941,914,187.32
Cash paid for distribution of
dividends and profits or payment 1,286,146,082.63 914,692,501.76
of interests
Including: dividends and profits
paid to minority shareholders by
subsidiaries
Cash paid for other financing
2,386,484,678.23 1,558,220,134.73
activities
14,375,311,709.89 11,414,826,823.81
102 / 262
Net cash flows from financing

7,805,047,664.23 19,454,262,397.39
activities
IV. Effect of fluctuation in
exchange rate on cash and cash 415,261,447.46 487,482,814.87
equivalents
V. Net increase in cash and cash
1,077,283,382.71 6,809,650,809.24
equivalents
Plus: beginning balance of cash
8,579,643,614.59 6,108,393,395.75
and cash equivalents
VI. Ending balance of cash and
9,656,926,997.30 12,918,044,204.99
cash equivalents
Person in charge of the Company: Chen Xuehua Accounting Principal: Wang Jun Head of
the Accounting Dept.: Ma Xiao
Statement of Cash Flows of the Parent Company

January-June 2023
I. Cash flows from operating activities:
Cash received from sales of
1,630,755,038.72 2,253,211,532.38
goods and provision of services
Refunds of taxes and
35,515,203.67 554,795.54
surcharges
1,708,908,242.17 787,822,203.43
3,375,178,484.56 3,041,588,531.35
Cash paid for goods purchased
2,510,633,601.35 2,932,745,116.98
and services received
Cash paid to and on behalf of
361,402,057.77 269,788,571.79
employees
Cash paid for taxes and
37,459,662.39 207,925,746.80
surcharges
Cash paid for other operating
975,818,980.12 382,718,955.85
activities
Sub-total of cash outflows
3,885,314,301.63 3,793,178,391.42
from operating activities
Net cash flows from operating
-510,135,817.07 -751,589,860.07
activities
II. Cash flows from investing activities
Cash received from disposal of
9,000,000.00
investments
Cash received from returns on
201,822,324.36 3,484,258.27
investments
disposal of fixed assets,
1,239,020.46 31,858,091.83
intangible assets and other
long-term assets
disposal of subsidiaries and other
business units
Cash received from other 9,926,396,343.85 10,293,191,307.06
103 / 262
10,129,457,688.67 10,337,533,657.16
Cash paid to acquire and
construct fixed assets, intangible 46,403,477.99 37,605,259.45
assets and other long-term assets
Cash paid for investments 1,274,942,267.07 4,881,553,382.00
Net cash paid for the
acquisition of subsidiaries and 257,234,411.00
other business entities
Cash paid for other investing
10,457,713,280.98 10,318,291,411.43
activities
Sub-total of cash outflows
11,779,059,026.04 15,494,684,463.88
from investing activities
Net cash flows from
-1,649,601,337.37 -5,157,150,806.72
III. Cash flows from financing activities:
Cash received from investors 349,027,711.00
Cash received from
5,304,842,625.54 3,632,827,288.87
borrowings
6,429,715,124.17 13,742,033,224.96
11,734,557,749.71 17,723,888,224.83
Cash paid for debts
3,599,023,469.74 3,055,300,295.85
repayments
Cash paid for distribution of
dividends and profits or payment 510,023,131.85 450,356,438.45
of interests
Cash paid for other financing
4,904,302,865.70 7,398,020,701.11
activities
9,013,349,467.29 10,903,677,435.41
Net cash flows from financing
2,721,208,282.42 6,820,210,789.42
activities
IV. Effect of fluctuation in
exchange rate on cash and cash 6,081,650.00 17,870,944.99
equivalents
V. Net increase in cash and
567,552,777.98 929,341,067.62
cash equivalents
Plus: beginning balance of
968,796,419.00 1,570,250,951.45
cash and cash equivalents
VI. Ending balance of cash and
1,536,349,196.98 2,499,592,019.07
cash equivalents
104 / 262
Consolidated Statement of Changes in Owners’ Equity

January-June 2023
First half of 2023
Equity attributable to owners of the parent company

Total
Item Minority
Paid-in capitals Other equity instruments owners’
Less: Other Generic equity
Special Surplus Undistributed equity
(or share Capital reserves treasury comprehensive risk Others Sub-total
Preference Perpetual reserves reserves profits
Others shares income reserves
capitals) shares bonds
25,893,1 32,682,4
I. Ending balance of 1,599,678,228.0 1,490,112 10,398,505,364. 631,014,57 27,349,45 328,198,6 11,903,922,5 6,789,319
776,405,562.87 58,131.4 77,995.1
last year 0 ,966.16 59 4.20 1.51 05.34 27.16 ,863.76
3 9
Plus: adjustments for
changes in
accounting policies
Adjustments for
correction of
accounting errors in
prior periods
Business
combination under
common control
Others
25,893,1 32,682,4
II. Beginning balance 1,599,678,228.0 1,490,112 10,398,505,364. 631,014,57 27,349,45 328,198,6 11,903,922,5 6,789,319
776,405,562.87 58,131.4 77,995.1
of this year 0 ,966.16 59 4.20 1.51 05.34 27.16 ,863.76
3 9
III.
Increases/decreases -17,648.7 -13,447,236 8,957,482 1,765,248,23 2,737,83 3,888,836 6,626,67
-213,087.00 233,763,722.44 716,650,875.47
in the current period 6 .90 .60 6.06 6,817.71 ,292.35 3,110.06
(“-” for decreases)
(I)Total
2,085,104,94 2,801,75 1,093,605 3,895,36
comprehensive 716,650,875.47
2.66 5,818.13 ,127.82 0,945.95
income
(II) Capital
-17,648.7 -13,447,236 246,980, 2,795,231 3,042,21
contributed or -213,087.00 233,763,722.44
6 .90 223.58 ,164.53 1,388.11
reduced by owners
1. Common stock 3,676,02 2,795,231 2,798,90
1,026.00 3,675,000.00
contributed by 6.00 ,164.53 7,190.53
105 / 262
owners
2. Capital invested by
holders of other
equity instruments
3. Amounts of
share-based payments 236,838, 236,838,
236,838,411.21
recognized in 411.21 411.21
owners’ equity
-17,648.7 -13,447,236 6,465,78 6,465,78
4. Others -214,113.00 -6,749,688.77
6 .90 6.37 6.37
(III) Profit -319,856,706 -319,856, -319,856,
distribution .60 706.60 706.60
1. Withdrawal of
surplus reserves
2. Withdrawal of
generic risk reserves
3. Profit distributed
-319,856,706 -319,856, -319,856,
to owners (or
.60 706.60 706.60
shareholders)
4. Others
(IV) Internal
carry-forward of
owners’ equity
1. Conversion of
capital reserves into
paid-in capitals (or
share capitals)
2. Conversion of
share capitals)
3. Surplus reserves
offsetting losses
4. Carry-forward of
changes in the
defined benefit plan
for retained earnings
5. Carry-forward of
other comprehensive
income for retained
106 / 262
earnings
6. Others
8,957,482 8,957,48 8,957,48
(V) Special reserves
.60 2.60 2.60
1. Amount withdrawn 51,569,96 51,569,9 51,569,9
in the current period 0.47 60.47 60.47
2. Amount used in 42,612,47 42,612,4 42,612,4
the current period 7.87 77.87 77.87
(VI) Others
28,630,9 39,309,1
IV. Ending balance in 1,599,465,141.0 1,490,095 10,632,269,087. 617,567,33 1,493,056,438.3 36,306,93 328,198,6 13,669,170,7 10,678,15
94,949.1 51,105.2
the current period 0 ,317.40 03 7.30 4 4.11 05.34 63.22 6,156.11
4 5
Second half of 2022
Equity attributable to owners of the parent company

Total
Item Specia Minority
Paid-in capitals Other equity instruments Less: Other Generic owners’
Capital l Surplus Undistribut equity
treasury comprehensiv risk Others Sub-total equity
(or share Preference Perpetual reserves reserv reserves ed profits
Others shares e income reserves
capitals) shares bonds es
16,64 19,383,5 23,900,6
I. Ending balance of 10,218,296,58 339,232,63 -419,363,343. 309,732,26 8,376,281,0 4,517,086,19
1,221,228,483.00 8,561. 90,924.5 77,120.3
last year 4.42 9.00 56 4.90 13.68 5.80
11 5 5
changes in
accounting policies
Adjustments for
correction of
prior periods
Business
combination under
common control
Others
16,64 19,383,5 23,900,6
II. Beginning balance 10,218,296,58 339,232,63 -419,363,343. 309,732,26 8,376,281,0 4,517,086,19
1,221,228,483.00 8,561. 90,924.5 77,120.3
of this year 4.42 9.00 56 4.90 13.68 5.80
11 5 5
III. 8,314,
1,150,23 341,128,04 646,371,226.7 1,889,133,9 3,722,19 1,196,444,29 4,918,64
Increases/decreases in 376,904,935.00 -7,634,068.97 266.9
6,756.25 6.00 2 96.00 9,065.92 1.33 3,357.25
the current period 2
107 / 262
(“-” for decreases)

(I)Total
646,371,226.7 2,255,513,7 2,901,88 837,297,344. 3,739,18
comprehensive
2 30.90 4,957.62 96 2,302.58
income
(II) Capital
1,150,23 364,006,411.0 346,519,29 1,178,37 263,547,494. 1,441,92
contributed or 10,655,700.00
6,756.25 3 1.00 9,576.28 69 7,070.97
reduced by owners
1. Common stock
338,372,011.0 346,519,29 2,508,42 2,508,42
contributed by 10,655,700.00
0 1.00 0.00 0.00
owners
1,150,23 1,150,23 1,150,23
holders of other
6,756.25 6,756.25 6,756.25
equity instruments
3. Amounts of
share-based payments 113,149,081.7 113,149, 113,149,
recognized in 3 081.73 081.73
owners’ equity
-87,514,681.7 -87,514,6 263,547,494. 176,032,
4. Others
0 81.70 69 812.99
(III) Profit -366,379,73 -366,379, -366,379,
distribution 4.90 734.90 734.90
1. Withdrawal of
surplus reserves
2. Withdrawal of
generic risk reserves
3. Profit distributed to
-366,379,73 -366,379, -366,379,
owners (or
4.90 734.90 734.90
shareholders)
4. Others
(IV) Internal
-371,640,480. -5,391,245.
carry-forward of 366,249,235.00
00 00
owners’ equity
1. Conversion of
capital reserves into -366,379,735.
366,379,735.00
paid-in capitals (or 00
share capitals)
2. Conversion of
share capitals)
108 / 262
3. Surplus reserves
offsetting losses
4. Carry-forward of
changes in the
defined benefit plan
for retained earnings
5. Carry-forward of
other comprehensive
income for retained
earnings
-5,391,245.
6. Others -130,500.00 -5,260,745.00
00
8,314,
8,314,26 8,314,26
(V) Special reserves 266.9
6.92 6.92
2
32,58
1. Amount withdrawn 32,587,2 32,587,2
7,270.
in the current period 70.87 70.87
87
24,27
2. Amount used in the 24,273,0 24,273,0
3,003.
current period 03.95 03.95
95
95,599,451.6 95,599,4
(VI) Others
8 51.68
24,96 23,105,7 28,819,3
IV. Ending balance in 1,150,23 10,210,662,51 680,360,68 227,007,883.1 309,732,26 10,265,415, 5,713,530,48
1,598,133,418.00 2,828. 89,990.4 20,477.6
the current period 6,756.25 5.45 5.00 6 4.90 009.68 7.13
03 7 0
Person in charge of the Company: Chen Xuehua Accounting Principal: Wang Jun Head of the Accounting Dept.: Ma Xiao
Statement of Changes in Owners’ Equity of the Parent Company

January-June 2023
First half of 2023
Other equity instruments
Item Paid-in capitals Less: treasury Other comprehensive Special Total owners’
Preference Perpetual Capital reserves Surplus reserves Undistributed profits
(or share capitals) Others shares income reserves equity
shares bonds
I. Ending balance
1,599,678,228.00 1,490,112,966.16 10,345,832,528.98 631,014,574.20 -39,949,268.37 328,198,605.34 1,900,836,572.14 14,993,695,058.05
of last year
Plus: adjustments
for changes in
accounting
109 / 262
policies
Adjustments
for correction of
accounting errors
in prior periods
Others
II. Beginning
balance of this 1,599,678,228.00 1,490,112,966.16 10,345,832,528.98 631,014,574.20 -39,949,268.37 328,198,605.34 1,900,836,572.14 14,993,695,058.05
year
III.
Increases/decrease
s in the current -213,087.00 -17,648.76 230,088,722.44 -13,447,236.90 -986,885.07 -313,216,364.85 -70,898,026.34
period (“-” for
decreases)
(I) Total
comprehensive -986,885.07 6,640,341.75 5,653,456.68
income
(II) Capital
contributed or
-213,087.00 -17,648.76 230,088,722.44 -13,447,236.90 243,305,223.58
reduced by
owners
1. Common stock
contributed by 1,026.00 1,026.00
owners
2. Capital invested
by holders of
other equity
instruments
3. Amounts of
share-based
payments 236,838,411.21 236,838,411.21
recognized in
owners’ equity
4. Others -214,113.00 -17,648.76 -6,749,688.77 -13,447,236.90 6,465,786.37
(III) Profit
-319,856,706.60 -319,856,706.60
distribution
1. Withdrawal of
surplus reserves
2. Profit -319,856,706.60 -319,856,706.60
distributed to
110 / 262
owners (or
shareholders)
3. Others
(IV) Internal
carry-forward of
owners’ equity
1. Conversion of
capital reserves
into paid-in
capitals (or share
capitals)
2. Conversion of
capital reserves
into paid-in
capitals (or share
capitals)
3. Surplus
reserves offsetting
losses
4. Carry-forward
of changes in the
defined benefit
plan for retained
earnings
5. Carry-forward
of other
comprehensive
income for
retained earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in the
current period
2. Amount used in
the current period
(VI) Others
IV. Ending 1,599,465,141.00 1,490,095,317.40 10,575,921,251.42 617,567,337.30 -40,936,153.44 328,198,605.34 1,587,620,207.29 14,922,797,031.71
balance in the
111 / 262
current period
Second half of 2022

Paid-in capitals Other equity instruments Other
Item Special Undistributed Total owners’
(or share Preference Capital reserves Less: treasury shares comprehensive Surplus reserves
Perpetual bonds Others reserves profits equity
capitals) shares income
I. Ending balance of 1,221,228,483.0

9,954,138,998.99 339,232,639.00 -40,000,000.00 22,627.13 309,732,264.90 2,100,926,123.03 13,206,815,858.05
last year 0
changes in accounting
policies
Adjustments for
correction of
prior periods
Others
II. Beginning balance 1,221,228,483.0
9,954,138,998.99 339,232,639.00 -40,000,000.00 22,627.13 309,732,264.90 2,100,926,123.03 13,206,815,858.05
of this year 0
III.
Increases/decreases in 1,150,236,75
376,904,935.00 79,880,612.73 341,128,046.00 -22,293.04 -20,900,044.47 1,244,971,920.47
the current period (“-” 6.25
for decreases)
(I) Total
345,479,690.43 345,479,690.43
comprehensive income
(II) Capital contributed 1,150,236,75
10,655,700.00 451,521,092.73 346,519,291.00 1,265,894,257.98
or reduced by owners 6.25
1. Common stock
10,655,700.00 338,372,011.00 346,519,291.00 2,508,420.00
contributed by owners
1,150,236,75
holders of other equity 1,150,236,756.25
6.25
instruments
3. Amounts of
share-based payments
113,149,081.73 113,149,081.73
recognized in owners’
equity
4. Others
(III) Profit distribution -366,379,734.90 -366,379,734.90
1. Withdrawal of
112 / 262
surplus reserves
2. Profit distributed to
owners (or -366,379,734.90 -366,379,734.90
shareholders)
3. Others
(IV) Internal
carry-forward of 366,249,235.00 -371,640,480.00 -5,391,245.00
owners’ equity
1. Conversion of
366,379,735.00 -366,379,735.00
share capitals)
2. Conversion of
share capitals)
3. Surplus reserves
offsetting losses
4. Carry-forward of
changes in the defined
benefit plan for
retained earnings
5. Carry-forward of
other comprehensive
income for retained
earnings
6. Others -130,500.00 -5,260,745.00 -5,391,245.00
(V) Special reserves -22,293.04 -22,293.04
1. Amount withdrawn 5,411,415.7
5,411,415.78
in the current period 8
2. Amount used in the 5,433,708.8
5,433,708.82
current period 2
(VI) Others
IV. Ending balance in 1,598,133,418.0 1,150,236,75
0 10,034,019,611.72 680,360,685.00 -40,000,000.00 334.09 309,732,264.90 2,080,026,078.56 14,451,787,778.52
the current period 6.25
Person in charge of the Company: Chen Xuehua Accounting Principal: Wang Jun Head of the Accounting Dept.: Ma Xiao
113 / 262
III. Basic information of the Company

1. Company profile
Zhejiang Huayou Cobalt Co., Ltd. was established by GREAT MOUNTAIN ENTERPRISE PTE.
Ltd, Huayou Holding (renamed from Tongxiang Huayou Investment Co., Ltd.) and other companies
upon approval by the Ministry of Commerce of the People’s Republic of China. The Company was
registered with Zhejiang Provincial Administration for Industry and Commerce on April 14, 2008, and is
headquartered in Jiaxing, Zhejiang. The Company now holds a business license with unified social credit
code of 913300007368873961. The total number of shares of the Company is 1,599,465,141 (par value
of RMB1 per share), including 19,486,086 outstanding A shares with restriction on sales and
1,579,979,055 outstanding A shares without restriction on sales. The Company’s shares were listed on
the Shanghai Stock Exchange on January 29, 2015.
The Company conducts business in the non-ferrous metal smelting and rolling industry. Its main
business covers R&D, production and sales of cobalt, copper, nickel, lithium, ternary precursor, cathode
materials, nickel intermediates, lithium products, etc. Its main products are cobalt products, copper
products, nickel products, ternary precursors, cathode materials, nickel intermediates and lithium
products.
The financial statements were approved to be made public by the 8th meeting of the sixth board of
directors of the Company on August 25, 2023.
2. Consolidation scope of the consolidated financial statements

The Company has included the following tier-one subsidiaries, tier-two subsidiaries, tier-three
subsidiaries and tier-four subsidiaries in the consolidated financial statements for the current period, as
detailed in Notes VI and VII to the financial statements. Such tier-one subsidiaries include Zhejiang Like
Cobalt Nickel Co., Ltd. (“Like Cobalt Nickel”), Huayou Import & Export, Huayou Quzhou, Huayou
Hong Kong, OIM Company, CDM Company, MIKAS Company, Huayou Mining Hong Kong, Huayou
New Energy Quzhou, Huayou Recycling, Huayou New Energy Technology, Zhejiang Youqing Trading
Co., Ltd. (“Youqing Trading”), Tongxiang Huashi Import & Export Co., Ltd. (Tongxiang Huashi”),
Tongxiang Hua’ang Trading Co., Ltd. (“Tongxiang Hua’ang”), Beijing Youhong Yongsheng
Technology Co., Ltd. (“Beijing Youhong”), Guangxi Huayou Engineering Project Management Co., Ltd.
(“Guangxi Huayou Engineering”), Huashan Import & Export (Tongxiang) Co., Ltd. (“Tongxiang
Huashan”), Beijing Huashan Yongsheng Technology Co., Ltd. (“Beijing Huashan”), Huashan Import &
Export (Wenzhou) Co., Ltd. (“Wenzhou Huashan”), Huake Import & Export (Wenzhou) Co., Ltd.
(“Wenzhou Huake”), Guangxi B&M, Tianjin B&M, Huaxun Import & Export (Tongxiang) Co., Ltd.
(“Tongxiang Huaxun”), Guangxi Huayou New Materials Co., Ltd. (“Guangxi Huayou New Materials”),
Guangxi Huayou New Energy Technology Co., Ltd. (“Guangxi Huayou New Energy”), Huawang
Import & Export (Tongxiang) Co., Ltd. (“Tongxiang Huawang”), Hualing Import & Export (Tongxiang)
Co., Ltd. (“Tongxiang Hualing”), Guangxi Lithium Industry, Huazheng Import & Export (Tongxiang)
Co., Ltd. (“Tongxiang Huazheng”), Huajian Import & Export (Wenzhou) Co., Ltd. (“Wenzhou
Huajian”), Shanghai Huayou Xinsheng Metal Co., Ltd. (“Shanghai Xinsheng”), Guangxi Huayou
Industrial Investment Co., Ltd. (“Guangxi Huayou Industrial Investment”) and Guangxi Huayou
Enterprise Investment Management Co., Ltd. (“Guangxi Huayou Enterprise Investment”), Shanghai
Huayou Jintian Enterprise Management Co., Ltd. (“Shanghai Jintian”). Such tier-two subsidiaries
include FEZA MINING SAS (“Feza Mining”), Resource Recycling, Huayou International Recycling
Resources Co., Ltd. (“Huayou International Recycling”), HUAYOU AMERICA, INC (“Huayou
America”), Huayou Singapore, Shanghai Feicheng, Heishui Huayou Recycling Technology Co., Ltd.
(“Heishui Recycling”), Huajin Company, Huayou Puxiang, Huaqing Cobalt Nickel Co., Ltd. (“Huaqing
Cobalt Nickel”), Huachuang International Investment Co., Ltd. (“Huachuang International”), Huawei
Nickel Resources Development Co., Ltd. (“Huawei Nickel Resources”), Huake Nickel Co., Ltd.
(“Huake Nickel”), Huayou International Cobalt, Huayuan Copper Co., Ltd. (“Huayuan Copper”),
Jiangsu Huayou, HUATUO INTERNATIONAL DEVELOPMENT PTE. Ltd (“Huatuo International”),
Chengdu B&M, Zhejiang B&M, Guangxi Huayou Import & Export Co., Ltd. (“Guangxi Huayou Import
& Export”), HUANENG ASIA INTERNATIONAL CO., LIMITED (“Huaneng Asia International”),
HUACAI (HONG KONG) LIMITED (“Huacai Hong Kong”), HUAYONG INTERNATIONAL
(HONG KONG) LIMITED (“Huayong International”), Huatuo Cobalt Co., Ltd. (“Huatuo Cobalt”),
114 / 262
Prospect Lithium, Quzhou Huayou Environmental Protection Technology Co., Ltd. (“Quzhou Huayou
Environmental Protection”), Huayou International Lithium (Hong Kong) Company Limited (“Huayou
International Lithium”), Huayou International Resources (Hong Kong) Company Limited (“Huayou
International Resources”), Huasheng Nickel (Hong Kong) Company Limited (“Huasheng Hong Kong”),
Huaxing Nickel (Hong Kong) Company Limited (“Huaxing Hong Kong”), Huachang Trading (Hong
Kong) Company Limited (“Huachang Trading”), Huaqi (Hong Kong) Company Limited (“Huaqi Hong
Kong”), Huachi (Hong Kong) Company Limited (“Huachi Hong Kong”), Huajin (Hong Kong)
Company Limited (“Huajin Hong Kong”), Huaming (Hong Kong) Company Limited (“Huaming Hong
Kong”), Huaqun (Hong Kong) Company Limited (“Huaqun Hong Kong”), Huashan (Hong Kong)
Company Limited (“Huashan Hong Kong”), Huawu (Hong Kong) Company Limited (“Huawu Hong
Kong”), Huaqi (Singapore) Co., Ltd. (“Huaqi Singapore”), Huajun International Investment Co., Ltd.
(“Huajun International Investment”), Huayao International Investment Co., Ltd. (“Huayao International
Investment”) and Huaze International Investment Co., Ltd. (“Huaze International Investment”) and
Huayou International Investment Co., Ltd. (“Huayou International Investment”). Such tier-three
subsidiaries include HUAYOU INTERNATIONAL MINING HOLDING LIMITED (“Huayou
International Holding”), Huayue Company, Huake Company, Huashan Company, Huayou Shixing
(Beijing) New Energy Technology Co., Ltd. (“Huayou Shixing”), Huafei Company, PT. Huasheng
Nickel (“Huasheng Indonesia”), PT. INDONESIA POMALAA INDUSTRY PARK (“IPIP Company”),
HUASHUN RESOURCES (PRIVATE) LIMITED (“Huashun Hong Kong”), KNI Company, PT
HUAXIANG REFINING INDONESIA (“Indonesia Huaxiang”), PT SULAWESI MANGANESE
RECYCLE (SLMR) and HUALI NICKEL INDONESIA (“Indonesia Huali”). Such tier-four
subsidiaries include PT. IPIP PORT KOLAKA (“Port Kolaka”) and B&M Science and Technology
(Hungary) Co., Ltd. (“B&M Hungary”).
IV. Basis for preparing the financial statements

1. Basis for preparing
The Company prepares its financial statements on a basis of ongoing operation.
2. Going concern
There are no matters or circumstances that give rise to significant doubt about the Company’s ability to
continue as a going concern for a period of 12 months from the end of the reporting period.
V. Major accounting policies and accounting estimates

Remark to the detailed accounting policies and accounting estimates:
Important note: The Company has formulated specific accounting policies and estimates for transactions
or events such as impairment of financial instruments, depreciation of fixed assets, depreciation of right
of use assets, amortization of intangible assets, and recognition of income based on actual production
and operation characteristics.
1. Statement on compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises, and truly and fully present the Company’s financial position,
operating results, changes in shareholders’ equity, cash flows and other related information.
2. Accounting period
The accounting period of the Company is from January 1 to December 31 in a calendar year.
3. Operating cycle
The Company has a relatively short operating cycle of 12 months, and regards it as the classification
standard for the liquidity of assets and liabilities.
115 / 262
4. Functional currency
The functional currency of the Company is RMB. Overseas subsidiaries such as Huayou Hong Kong,
Huayou Singapore, CDM Company, MIKAS Company, Huayue Company, Huake Company, Huafei
Company, etc. operate business overseas and determine their functional currencies according to the main
economic environment in which they operate.
5. Accounting treatment methods for business combinations under common control and those
not under common control
1. Accounting treatment methods for business combinations under common control
Assets and liabilities acquired by the Company from business combination are measured at book value
of the assets and liabilities of the combinee in the financial statements of the ultimate controller on the
combination date. The Company adjusts capital reserve at the difference between the book value of the
owners’ equity of the acquiree as presented in the consolidated financial statements of the ultimate
controller and that of the consideration for the combination paid or total par value of outstanding shares,
and, if there is no sufficient capital reserve for write-downs, adjusts the retained earnings.
2. Accounting treatment methods for business combinations not under common control
If combination cost is more than the fair value of the acquiree’s net identifiable assets obtained, the
Company will recognize the balance on the acquisition date as goodwill; if the combination cost is less
than the fair value of the acquiree’s net identifiable assets obtained, the measurement of fair value of
various net identifiable assets, liabilities and contingent liabilities of the acquiree as well as combination
cost will be reviewed at first, and if the combination cost is still less than the fair value of the acquiree’s
identifiable net assets obtained after review, the balance will be included into the current profit or loss.
6. Methods for preparing the consolidated financial statements

All the subsidiaries under the control of the parent company are included in the scope of consolidated
financial statements. Consolidated financial statements are prepared on the basis of the financial
statements of the parent company and its subsidiaries, according to other relevant information and
pursuant to Accounting Standards for Business Enterprises No.33 - Consolidated Financial Statements.
7. Classification of joint venture arrangements and accounting treatment methods for joint
operation
1. Joint venture arrangements are classified into joint operation and joint venture.
2. When the Company is a party to joint operation, the following items related to the share of interests in
the joint operation will be recognized:
(1) to recognize assets solely held by it, and recognize the assets jointly held based on its share of
interests;
(2) to recognize the liabilities solely assumed by it, and recognize the liabilities jointly assumed based on
its share of interests;
(3) to recognize the incomes from sale of the part of output enjoyed by it from the joint operation;
(4) to recognize the incomes of the joint operation from sale of output based on its share of interests;
(5) to recognize the costs solely incurred by it, and recognize the costs of the joint operation based on its
share of interests.
8. Criteria for recognizing cash and cash equivalents

Cash equivalents refer to the short-term (generally maturing within three months from acquisition) and
highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of change in value.
9. Translation of foreign currency transactions and foreign currency financial statements

1. Translation of foreign currency transactions
116 / 262
Foreign currency transactions are translated into RMB at the approximate exchange rate of the spot
exchange rate on the transaction date upon the initial recognition. The exchange differences arising from
balances of monetary items denominated in foreign currency are converted at the spot exchange rate
prevailing on the balance sheet date. Except for those arising from specific-purpose borrowings in
foreign currencies related to assets eligible for capitalization that shall be measured in accordance with
principle of capitalization of the borrowing costs, exchange differences are included to the current profit
or loss. Non-monetary items denominated in foreign currency and measured at historical costs are still
converted at the approximate exchange rate of the spot exchange rate prevailing on the transaction date,
of which the amount in RMB remains unchanged. Non-monetary items denominated in foreign currency
and measured at fair values are still be converted at the spot exchange rate prevailing on the date when
the fair values are determined, and the exchange differences arising from them are included to the
current profit or loss or other comprehensive income.
2. Translation of foreign currency financial statements
Assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing on the
balance sheet date. Owners’ equity items, except for the item of “undistributed profits”, are translated at
the spot exchange rate prevailing on the transaction date. Income and expense items in the income
statement are translated at the approximate exchange rate of the spot exchange rate prevailing on the
transaction date. Foreign currency translation differences arising from the above translation are included
in other comprehensive income.
10. Financial instruments

1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories at initial recognition: (1) financial
assets measured at amortized cost; (2) financial assets measured at fair value through other
comprehensive income; and (3) financial assets measured at fair value through current profit or loss.
Financial liabilities are classified into the following four categories at initial recognition: (1) financial
liabilities measured at fair value through current profit or loss; (2) financial liabilities formed due to the
transfer of financial assets that do not meet the conditions for de-recognition or continued involvement
in the transferred financial assets.; (3) financial guarantee contracts that do not belong to items (1) or (2)
above, and loan commitments that do not belong to item (1) above at an interest rate lower than the
market rate; (4) financial liabilities measured at amortized cost.
2. Basis for recognizing, methods for measuring and conditions for de-recognizing financial assets and
financial liabilities
(1) Recognition basis and measurement methods of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it will recognize a financial asset or
financial liability. Financial assets or financial liabilities are measured at fair value upon initial
recognition. For financial assets and financial liabilities measured at fair value through current profit or
loss, relevant transaction costs are directly included into current period profit or loss. For other
categories of financial assets or financial liabilities, relevant transaction costs are directly included into
initial recognition amount. However, the accounts receivable initially recognized by the Company are
initially measured at the transaction price as defined in the Accounting Standard for Business
Enterprises No. 14 - Revenue if they exclude significant financing or the Company does not consider the
financing of the contracts within one year.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost.
Such financial assets are subsequently measured at amortized cost by using the effective interest method.
Gains or losses arising from the financial assets that are measured at amortized cost and that are not part
of any hedging relationship are included in the current profit or loss when such financial assets are
de-recognized, re-classified, amortized with the effective interest method or impaired.
2) Debt instrument investments measured at fair value through other comprehensive income
Such investments are subsequently measured at fair value. The interest calculated by using the effective
interest method, impairment loss or gain, and exchange loss or gain are included in current profit or loss,
and other gains or losses are included in other comprehensive income. When de-recognized, the
accumulated gains or losses previously included in other comprehensive income will be transferred from
other comprehensive income and included in current profit or loss.
117 / 262
3) Equity instrument investments measured at fair value through other comprehensive income
Such investments are subsequently measured at fair value. Dividends obtained (other than the recovered
investment costs) are included in the current profit or loss, and other gains or losses are included in other
comprehensive income. When de-recognized, the accumulated gains or losses previously included in
other comprehensive income will be transferred from other comprehensive income and included in
retained earnings.
4) Financial assets measured at fair value through current profit or loss
Such financial assets are subsequently measured at fair value. The gains or losses (including interest and
dividend income) arising therefrom are included in the current profit or loss, unless such financial assets
are part of the hedging relationship.
(3) Subsequent measurement methods for financial liabilities
1) Financial liabilities measured at fair value through current profit or loss
Financial liabilities of this category include held-for-trading financial liabilities (including derivatives
belonging to financial liabilities) and the financial liabilities designated to be measured at fair value
through current profit or loss. Such financial liabilities are subsequently measured at fair value. The
amount of changes in fair value of financial liabilities designated to be measured at fair value through
current profit or loss due to changes in the Company’s own credit risk is recognized in other
comprehensive income, unless such treatment would cause or expand accounting mismatches in profit or
loss. Other gains or losses arising from such financial liabilities (including interests expense, changes in
fair value other than those caused by changes in the Company’s own credit risk) are recognized in the
current profit or loss, unless the financial liabilities are part of a hedging relationship. When
de-recognized, the accumulated gains or losses previously included in other comprehensive income will
be transferred from other comprehensive income and included in retained earnings.
2) Financial liabilities formed due to the transfer of financial assets that do not meet the conditions for
de-recognition or continued involvement in the transferred financial assets.
Such financial liabilities are measured in accordance with relevant provisions of Accounting Standard
for Business Enterprise No. 23 - Transfer of Financial Assets.
3) Financial guarantee contracts that do not belong to the categories in items (1) or (2) above, and loan
commitments that do not belong to the category in item (1) above and is at an interest rate lower than the
market rate
Such financial liabilities are subsequently measured at the following amount, whichever is higher, after
initial recognition: a) the amount of loss provision determined according to the impairment principle of
financial instruments; b) the balance of the initial recognition amount after deducting the accumulated
amortization amount determined according to relevant provisions of Accounting Standards for Business
Enterprises No. 14 - Revenue.
4) Financial liabilities at amortized cost
Such financial liabilities are measured at amortized cost by using the effective interest method. Gains or
losses arising from the financial liabilities that are measured at amortized cost and that are not part of
any hedging relationship are included in the current profit or loss by using the effective interest method
when they are de-recognized or amortized.
(4) De-recognition of financial assets and financial liabilities
1) A financial asset will be de-recognized if it meets any of the following conditions:
a) where the contractual rights for collecting the cash flow of the said financial asset are terminated;
b) where the financial asset has been transferred, and such transfer meets the conditions on
de-recognition of financial assets as specified in the Accounting Standards for Business Enterprises
No.23 - Transfer of Financial Assets.
2) When the prevailing obligations of a financial liability (or any part thereof) are relieved, the financial
liability (or any part thereof) will be de-recognized.
3. Basis for recognizing and method for measuring the financial assets transferred
Where the Company has transferred nearly all the risks and rewards associated with the ownership of a
financial asset, the financial asset will be de-recognized; where the Company retains nearly all the risks
and rewards associated with the ownership of a financial asset, the financial asset transferred will be
continuously recognized. Where the Company neither transfers nor retains nearly all the risks and
rewards associated with the ownership of a financial asset, it will be dealt with in the following ways: 1)
where the Company retains no control over the financial asset, the financial asset will be de-recognized,
and the rights and obligations generated or retained in such transfer will be separately recognized as an
asset or liability; 2) where the Company retains its control over the financial asset, the financial asset
118 / 262
will be recognized according to the extent of its continuous involvement in the transferred financial asset
and relevant liability will be recognized accordingly.
Where the entire transfer of a financial asset meets the de-recognition conditions, the difference of the
following two amounts will be included in the current profit or loss: 1) the book value of the financial
asset transferred on the date of de-recognition; 2) the sum of the consideration for the financial asset
transferred and the amount of the de-recognized part corresponding to the accumulated amount of the
changes in fair value originally and directly included in other comprehensive income (where the
financial asset involving transfer belongs to the debt instrument investments measured at fair value
through other comprehensive income).Where a financial asset is partially transferred and the transferred
part meets the de-recognition conditions, the entire book value of the financial asset before the transfer
will be allocated between the de-recognized part and the continuously recognized part based on the
relative fair value on the transfer date, and the difference between the following two amounts will be
included in the current profit or loss: 1) the book value of the de-recognized part; 2) the sum of the
consideration for the de-recognized part and the amount of the de-recognized part corresponding to the
accumulated amount of the changes in fair value originally and directly included in other comprehensive
income (where the financial asset involving transfer belong to the debt instrument investments measured
at fair value through other comprehensive income).
4. Method for determining the fair value of financial assets and financial liabilities:
The Company uses valuation techniques that are applicable under the current circumstances and that are
supported by sufficient available data and other information to determine the fair value of financial
assets and financial liabilities. The Company classifies the inputs used for the valuation techniques into
the following levels and uses them in the following order:
(1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that
the Company can access on the measurement date.
(2) Level 2 inputs are the directly or indirectly observable inputs of relevant assets or liabilities other
than the level 1 inputs, including: quoted prices for similar assets or liabilities in active markets; quoted
prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted
prices that are observable, including interest rates and yield curves observable at common quoted
intervals; market-corroborated inputs, etc.
3) Level 3 inputs are unobservable inputs for the asset or liability, including interest rates that cannot be
observed directly or cannot be corroborated by observable market data, stock volatilities, future cash
flows for retirement obligations assumed in the business combination, and financial forecasts based on
its own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
For financial assets measured at amortized cost, debt instrument investments measured at fair value
through other comprehensive income, contract assets, lease receivables, loan commitments other than
financial liabilities classified as measured at fair value through current profit or loss, financial guarantee
contracts that do not belong to financial liabilities measured at fair value through current profit or loss,
or that do not belong to financial liabilities formed due to the transfer of financial assets that do not meet
the conditions for de-recognition or continued involvement in the transferred financial assets, Based on
expected credit losses, the Company conducts accounting treatment for impairment and recognizes loss
provisions based on the expected credit loss.
.
The “expected credit loss” refers to the weighted average of the credit losses of financial instruments
that are weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows receivable from the contract discounted at the original actual interest rate and all cash flows
expected to be received by the Company, that is, the present value of all cash shortages. Specifically, the
financial assets purchased or originated by the Company that have suffered credit impairment will be
discounted at the credit-adjusted actual interest rate of the financial assets.
For financial assets purchased or originated with credit impairment, only the cumulative change in
expected credit loss in the whole duration after initial recognition are recognized as loss provision on the
balance sheet date.
For lease receivables, and the receivables or contract assets formed from transactions not containing
significant financing components and governed by the Accounting Standards for Business Enterprises
119 / 262
No. 14 - Revenue, the Company measures loss provision with simplified measurement methods at the
amount equivalent to the expected credit loss for the whole duration.
For any other financial asset, the Company assesses whether their credit risk has significantly increased
since initial recognition on each balance sheet date. If the credit risk has increased significantly since the
initial recognition, the Company measures its loss provision at the expected credit loss for the whole
duration of the financial asset; if the credit risk of the financial asset has not significantly increased since
the initial recognition, the Company measures its loss provision at the expected credit loss of the
financial asset within the next 12 months.
The Company, by utilizing forward-looking information and other reasonable and based information
available and by comparing the risk of default of a financial instrument on the balance sheet date with
the risk of default on the initial recognition date, determines whether the credit risk of the financial
instrument has increased significantly since the initial recognition.
If, on the balance sheet date, the Company judges that a financial instrument has a low credit risk , the
Company will assume that the credit risk of the financial instrument has not increased significantly since
initial recognition.
The Company assesses whether expected credit risk and measures expected credit loss on the basis of a
single financial instrument or a portfolio of financial instruments. When conducting an assessment based
on a portfolio of financial instruments, the Company may classify financial instruments into different
portfolios based on common credit risk characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the increase or
reversal of the loss provision resulting therefrom will be regarded as impairment loss or gain and
included in the current profit or loss. For a financial asset measured at amortized cost, the loss provision
is written off against the book value of the financial asset listed in the balance sheet; for a debt
investment measured at fair value through other comprehensive income, the Company will recognize its
loss provision in other comprehensive income without offset of the book value of such financial asset.
(2) Financial instruments of which expected credit risk is assessed on the basis of portfolio and expected
credit loss is measured by using the three-stage model
Item Basis for Method for measuring

determining the expected credit loss
portfolio
Other receivables - portfolio of The Company calculates
government funds receivables expected credit loss by the
Other receivables - portfolio of related exposure at default and the
parties within the consolidation scope expected credit loss rate within
Nature of funds the next 12 months or for the
Other receivables - portfolio of interests
receivable entire duration by reference to
Other receivables - portfolio of dividends the historical credit loss
receivable experience and taking into
consideration of the current
Other receivables - aging portfolio Aging situation and the forecast of
future economic conditions.
(3) Receivables and contract assets of which expected credit loss are measured by using the simplified
measurement method
1) Specific portfolio and methods for measuring expected credit loss
Basis for
Item determining Method for measuring expected credit loss
the portfolio
The Company calculates expected credit loss by the
exposure at default and the expected credit loss rate for
Bank acceptance bills the entire duration by reference to the historical credit
Type of notes
receivable loss experience and taking into consideration of the
current situation and the forecast of future economic
conditions.
120 / 262
The Company calculates expected credit losses by

preparing a comparison table of the aging of notes
Commercial
receivable and the expected credit loss rate in the entire
acceptance bills
duration by reference to the historical credit loss
receivable
experience and taking into consideration the current
situation and the forecast of future economic conditions.
The Company calculates expected credit losses by
preparing a comparison table of the aging of accounts
Accounts receivable - receivable and the expected credit loss rate in the entire
Aging
aging portfolio duration by reference to the historical credit loss
experience and taking into consideration the current
situation and the forecast of future economic conditions.
The Company calculates expected credit loss by the
Accounts receivable - exposure at default and the expected credit loss rate for
portfolio of related Nature of the entire duration by reference to the historical credit
parties within the funds loss experience and taking into consideration of the
consolidation scope current situation and the forecast of future economic
conditions.
2) Comparison table of the aging of accounts receivable - aging portfolio and commercial acceptance
bills receivable, and the expected credit loss rate in the entire duration
Expected credit loss rate
Aging of accounts receivable
(%)
Within 1 year (inclusive, the same hereinafter) 5.00
1 to 2 years 20.00
2 to 3 years 50.00
Over 3 years 100.00
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are separately presented in the balance sheet without mutual
offset. However, the Company will record the amount mutually offset between the financial assets and
the financial liabilities in the balance sheet if all the following conditions are met: (1) where the
Company has legal rights to offset the recognized amounts, and such legal right is currently enforceable;
and (2) where the Company plans to settle in net amount, or to cash the financial assets and settle the
financial liabilities simultaneously.
For a financial asset transferred that does not meet the conditions for de-recognition, the Company will
not offset the financial asset transferred with relevant liabilities.
11. Notes receivable

Recognition and accounting treatment method for expected credit losses of notes receivable
12. Accounts receivables

Recognition and accounting treatment method for expected credit losses of accounts receivables
13. Financing funds receivables

14. Other receivables

Recognition and accounting treatment method for expected credit losses of other receivables.
121 / 262
15. Inventories
1. Classification of inventories
Inventories refer to the finished product or commodity held for sale in daily activities, goods in process,
materials used in production or rendering of service.
2. Method for measuring inventories dispatched
Inventories dispatched are accounted by using the weighted average method.
3. Basis for determining net realizable values of inventories
On the balance sheet date, an inventory is measured at its cost or its net realizable value, whichever is
lower, and the provision for depreciation is made based on the difference between its cost and its net
realizable value. For inventories for direct sale, their net realizable values are recognized at the estimated
selling prices minus the estimated selling expenses and relevant taxes and surcharges. For inventories
required for process, their net realizable values are recognized at the estimated selling prices of finished
goods minus estimated costs until completion, estimated selling expenses and relevant taxes and
surcharges. On the balance sheet date, if part of the same inventory has agreed contract price but the
other part has no agreed contract price, their net realizable values are determined respectively, and the
amount accrued or reversed of inventory provision for depreciation is determined respectively by
comparison with their corresponding cost.
4. Inventory system
The Company adopts perpetual inventory system for accounting.
5. Methods for amortizing low-cost consumables and packaging materials
(1) Low-cost consumables
Low-cost consumables are amortized by using the one-off amortization method.
(2) Packaging materials
Packing materials are amortized by using the one-off amortization method.
16. Contract assets

(1) Recognition methods and standards for contract assets
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between its performance of fulfillment obligations and customer payments. The Company
presents its contract assets and contract liabilities under the same contract at their net amount after
offsetting each other.
The Company recognizes the right to receive consideration from customers unconditionally (i.e., only
depending on the passage of time) as receivables, and recognizes the right to receive consideration upon
the transfer of goods to customers (depending on factors other than passage of time) as contract assets.
The Company recognizes the obligation to transfer goods or services to a customer for which the
Company has received consideration (or an amount of consideration is due) from the customer as
contract liability.
(2) Recognition and accounting treatment method for expected credit loss of contract assets
17. Held-for-sale assets

1. Classification of non-current assets or disposal group held for sale
The Company classifies the non-current assets or disposal groups meeting all the following conditions
into the held-for-sale category: (1) according to the general practice for selling such kind of asset or
disposal group in the similar transaction, the asset or portfolio can be immediately sold in the prevailing
circumstance; (2) the sale of the asset or portfolio is very likely to happen, which means that the
Company has made a resolution for one selling plan and had acquired decided purchase commitment,
and it is estimated that the sale will be completed within one year.
For the non-current assets or disposal groups specially acquired by the Company for resale, if they meet
the specified conditions that “it is expected that the sale will be completed within one year” on the
acquisition date, and it is likely to meet other classification conditions of the held-for-sale category in
122 / 262
the short term (usually 3 months), the Company will classify it into the held-for-sale category on the
acquisition date.
If the transaction between non related parties is not completed within one year due to one of the
following reasons beyond the control of the Company, and the Company still commits to sell the
non-current asset or disposal group, the non-current asset or disposal group will continue to be classified
as the held-for-sale category: (1) the buyer or any other party unexpectedly set conditions that led to a
delay in the sale, and the Company has taken timely action to address the issue, and it is expected that
the delay factor can be successfully resolved within one year from the setting of the conditions that
caused the delay in the sale; (2) the non-current asset or disposal group held for sale was not sold within
one year due to rare circumstances, but the Company has taken necessary measures to address the issue
in the first year and the non-current asset or disposal group re-met the conditions for classification as the
held-for-sale category.
2. Measurement of non-current assets or disposal groups held for sale
(1) Initial measurement and subsequent measurement
If the book value of a non-current asset or disposal group held for sale is higher than the net amount of
the fair value minus the sale cost when it is initially measured and re-measured at the balance sheet date,
the book value will be written down to the net amount of the fair value minus the sale cost, and the
write-down amount will be recognized as the loss from asset impairment and included in the current
profit or loss; meanwhile, provision for impairment of held-for-sale assets will be made.
For a non-current asset or disposal group that is classified as held-for-sale assets on the acquisition date,
the Company compares the initial measurement amount and the net amount of fair value minus the sale
cost on the premise that such non-current asset or disposal group is not classified into held-for-sale
assets at the time of initial measurement, and such non-current assets or disposal groups will be
measured at the lower of them. Except for the non-current assets or disposal groups obtained in business
combination, the difference arising from a non-current asset or disposal group which takes the net
amount of fair value thereof deducting the sales cost as initial measurement amount, is included in the
current profit or loss.
For the amount of loss from asset impairment recognized by a disposal group held for sale, the book
value of goodwill in the disposal group will be firstly offset, and then the book value thereof will be
offset pro rata according to the proportion of various non-current assets in the disposal group.
No provision for depreciation or amortization for non-current assets held for sale or non-current assets in
disposal groups will be made, and the interest on liabilities in disposal groups held for sale and other
expenses will continue to be recognized.
(2) Accounting treatment for reversal of asset impairment loss
If the net amount of the fair value of a non-current asset held for sale on the subsequent balance sheet
date minus the sales cost increases, the amount previously written down will be recovered and reversed
from the amount of asset impairment loss recognized after being classified into the held-for-sale
category, and the reversed amount will be included in the current profit or loss. Asset impairment loss
recognized before being classified as the held-for-sale category will not be reversed.
If the net amount of the fair value of a disposal group held for sale or disposal group on the subsequent
balance sheet date minus the sales cost increases, the amount previously written down will be recovered
and reversed in the amount of asset impairment loss recognized after being classified into the
held-for-sale category, and the reversed amount will be included in the current profit or loss. The
deducted book value of the goodwill and the asset impairment loss of non-current assets recognized
before being classified into the category of held-for-sale may not be reversed.
For the amount subsequently reversed from the asset impairment loss of a disposal group held for sale
recognized, the book value will be increased according to the proportion of various non-current assets in
the disposal group except for goodwill.
(3) Accounting treatment for no longer continuing to be classified into the category of held-for-sale and
de-recognition
When a non-current asset or disposal group no longer meets the conditions for the classification into the
category of held-for-sale and no longer continues to be classified into the category of held-for-sale, or
when a non-current asset is removed from the disposal group held for sale, it will be measured at the
following amount, whichever is lower:1) the amount after the adjustment of depreciation, amortization
or impairment that should be recognized on the assumption that book value of the asset or disposal
group before it is classified into the category of held-for-sale fails to be classified into the category of
held-for-sale;2) recoverable amount.
123 / 262
When a non-current asset or a disposal group held for sale is de-recognized, the gain or loss that has not
been recognized will be included in the current profit or loss.
18. Debt investments

Recognition and accounting treatment method for expected credit loss of debt investments
19. Other debt investments

Recognition and accounting treatment method for expected credit loss of other debt investments
20. Long-term receivables

Recognition and accounting treatment method for expected credit loss of long-term receivables
21. Long-term equity investments

1. Judgment of joint control and significant influence
If, according to relevant agreements, there is common control over a certain arrangement, and the
relevant activities under the arrangement must be unanimously agreed upon by the participants who
share control before making decisions, such common control will be determined as a “joint control”. If
there is the power to participate in making decisions on the financial and operating policies of the
investee, but not the power to control, either individually or jointly with other parties, the formulation of
such policies, it will be determined as “significant influence”.
2. Determination of investment cost
(1) For a long-term equity investment formed due to business combination under common control, if the
Company pays a consideration to the combined party in cash, by transferring non-cash assets or by
assuming debts, the share of book value of its owners’ equity in the combined party in the consolidated
financial statements of the ultimate controlling party will be regarded as the initial investment cost of the
long-term equity investment on the combination date. The capital reserve will be adjusted according to
the difference between the initial investment cost of the long-term equity investment of the combining
party and the book value (or total par value of outstanding shares) of the consideration paid for the
combination; if there are no sufficient capital reserve for write-downs, the retained earnings will be
adjusted.
For a long-term equity investment formed by a business combination under common control that is
conducted through multiple transactions and by steps, the Company determines whether it is a “package
deal”. If it is a “package deal”, the Company will account for such transactions as the same transaction
by which it obtains the right of control. If it is not a “package deal”, the investment initial cost thereof
will be recognized at the share of book value of the combined party’s net assets in the consolidated
financial statements of the ultimate controller on the acquisition date. If there is a difference between the
initial investment cost of the long-term equity investment on the combination date and the sum of the
book value of the long-term equity investment before combination and the book value of the
consideration newly paid by shares acquired on the combination date, the difference will be used to
offset the capital reserve; and if the capital reserve is insufficient to be offset, retained earnings will be
offset.
(2) For a long-term equity investment formed due to business combination not under common control,
the initial investment cost of the long-term equity investment will be recognized at the fair value of
combination consideration paid on the combination date.
Where a long-term equity investment formed due to business combination not under common control
that is conducted through multiple transactions and by stages, the Company conducts accounting
treatment by distinguishing individual financial statements from consolidated financial statements:
(1) In individual financial statements, the initial investment cost will be changed to be accounted for
under the cost method and recognized at the sum of the book value of equity investments originally held
and newly increased investment cost.
124 / 262
(2) In consolidated financial statements, the Company will judge whether it is a “package deal”. If it is a
“package deal”, the Company will account for such transactions as the same transaction by which it
obtains the right of control. If it is not a “package deal”, the equity of the acquiree held before the
acquisition date will be re-measured at the fair value of such equity on the acquisition date, and the
difference between the fair value and its book value will be included in current investment income; if the
equity of the acquiree held before the acquisition date involves other comprehensive income accounted
for under the equity method, the relevant other comprehensive income will be transferred in income of
the period where the acquisition date belongs to, except for other comprehensive income caused by the
changes in net debt or net asset since the investee re-measures the defined benefit plan.
(3) For a long-term equity investment formed not due to business combination, the initial investment
cost of the long-term equity investment will be the payment actually paid for purchase if it is acquired by
payment of cash, or the fair value of the equity securities offered if it is acquired by offering equity
securities, or the amount determined in accordance with relevant provisions of the Accounting Standards
for Business Enterprises No.12 - Debt Restructuring if it is acquired by debt restructuring, or the amount
determined in accordance with relevant provisions of the Accounting Standards for Business Enterprises
No.7 - Exchange of Non-monetary Assets if it is acquired by exchange of non-monetary assets.
3. Method for subsequent measurement and recognition of profit or loss
The Company measures the long-term equity investments that it can exercise control over the investee
by using the cost method, and measures the long-term equity investments in associates and joint ventures
by using the equity method.
4. Accounting treatment for disposal of investments in subsidiaries through multiple transactions and by
steps which leads to the loss of control
(1) Individual financial statements
In case of disposal of an equity investment, the difference between the book value and the actual
purchase price will be included in the current profit or loss. The remaining equities after disposal will be
accounted for under the equity method if the Company still exerts a significant influence on the investee
or exercise joint control over the investee, or accounted for in accordance with relevant provisions of the
Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments if the Company cannot exercise control, or joint control over or a significant influence on
the investee.
(2) Consolidated financial statements
(1) Disposal of investments in subsidiaries through multiple transactions and by steps which leads to the
loss of control, but such transactions are not “package deal”
Before the loss of control, the difference between the proceeds from disposal and the share of net assets
of subsidiaries enjoyed the Company (continuously calculated from the acquisition date or the
combination date) corresponding to the disposal of long-term equity investments, will be offset against
capital reserve (or capital premium); when capital premium is insufficient to be offset, the retained
earnings will be offset.
When the Company losses control over a subsidiary, the remaining equity will be re-measured at its fair
value on the date of loss of control. The difference of total amount of the consideration from disposal of
equity plus the fair value of the remaining equities minus the shares calculated at the original
shareholding ratio in net assets of the original subsidiary which are continuously calculated as of the
acquisition date or combination date will be included in the investment income of the period in which
the loss of control happens and at the same time offset the goodwill. Other comprehensive incomes
associated with the equity investments of the original subsidiary, will be transferred into investment
income of the period in which the loss of control happens.
(2) Disposal of the investments in subsidiaries through multiple transactions and by steps which leads to
the loss of control, and such transactions are “package deal”
The Company accounts for such transactions as the same transaction by which it disposes the subsidiary
and loses control. However, the difference between the accumulated disposal considerations before loss
of control and the Company’s share of the net assets of the subsidiary is recognized as other
comprehensive income in the consolidated financial statements, and is transferred into current profit or
loss upon loss of control.
22. Investment real estates

N/A
125 / 262
23. Fixed assets

(1) Recognition criteria
Fixed assets refer to the tangible assets held for the purpose of producing commodities, providing
services, renting or business management with useful lives exceeding one accounting year. A fixed asset
will only be recognized when the economic benefits relating to it may flow into the Company and its
costs can be measured reliably.
(2) Depreciation method

Depreciation Depreciation life Annual
Category Residual value rate
method (year) depreciation rate
Houses and Straight-line 10-35 0-10 10.00-2.57
buildings method
Machinery Straight-line 5-16 0-10 20.00-5.63
equipment method
Transportation Straight-line 5-10 0-10 20.00-9.00
equipment method
Other equipment Straight-line 5-10 0-10 20.00-9.00
method
(3) Recognition basis of, valuation and depreciation method for, fixed assets acquired through
financing lease
24. Construction in progress

1. A construction in progress will only be recognized when the economic benefits relating to it may flow
into the Company and its costs can be measured reliably. Constructions in progress are measured at the
actual cost incurred before the assets reach the condition for their intended use.
2. A construction in progress, after it reaches the conditions for intended use, will be converted into
fixed assets according to the actual cost. For a construction in progress that has reached the condition for
intended use but for which the final account for completed project has not been handled, it will be
transferred to the fixed asset at the estimated value first. After the final account for completed project is
settled, the Company will adjust the original estimated value according the actual cost, but does not
adjust the provision for such depreciation that has been made.
25. Borrowing costs

1. Principles for the capitalization of borrowing costs
Borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization will be capitalized and included in relevant asset cost;
other borrowing costs will be recognized as expenses when incurred and be included into the current
profit or loss.
2. Capitalization period for borrowing costs
(1) Borrowing costs may be capitalized only when all the following conditions are met:1) asset
disbursements have already been incurred; 2) borrowing costs have already been incurred; and 3) the
acquisition and construction or production activities which are necessary to prepare the assets for their
intended use or sale have already been started.
(2) If the acquisition and construction or production activities of assets eligible for capitalization are
abnormally interrupted and such condition lasts for more than three months, the Company will suspend
the capitalization of borrowing costs; borrowing costs incurred during the interruption period are
recognized as current expenses until the acquisition, construction or production of the asset re-starts.
126 / 262
(3) Capitalization of borrowing costs will be ceased when the acquired and constructed or produced
assets eligible for capitalization have reached their intended use or sale status.
3. Capitalization rate and capitalization amount of borrowing costs
Where a special borrowing is obtained for purchasing and constructing or producing assets eligible for
capitalization, its interest amount to be capitalized shall be the interests expense of the special borrowing
actually incurred in the current period (including amortization of discount or premium determined by
using effective interest method), less the interests income of the borrowings unused and deposited in
bank or return on temporary investment. Where the acquisition and construction or production of assets
eligible for capitalization have used a general borrowing, the interest amount of the general borrowing to
be capitalized will be calculated by multiplying the weighted average of asset disbursements of the part
of accumulated asset disbursements exceeding the special borrowing by the capitalization rate of the
used general borrowing.
26. Biological assets

27. Oil and natural gas assets

28. Right of use assets

The right of use assets are initially measured at cost. Such cost includes: 1) the initial measurement
amount of lease liabilities; 2) in case of lease incentive in the lease payment paid on or before the lease
commencement date, relevant amount of the lease incentive that has been enjoyed shall be deducted; 3)
the initial direct expenses incurred by the Company as the lessee; 4) the costs that the Company, as the
lessee, expects to incur for dismantling and removing the leased assets, restoring the site where the
leased assets are located, or restoring the assets to the state agreed in the lease terms.
The Company depreciates the right of use assets by using the straight-line method. If there is a
reasonable assurance that the ownership of a leased asset can be acquired when the lease term expires,
the lease asset will be depreciated over the remaining useful life. If there is no reasonable assurance that
the ownership of the leased asset can be acquired when the lease term expires, the leased asset will be
depreciated within the lease term or the remaining useful life of the leased asset, whichever is shorter.
29. Intangible assets

(1) Valuation method, useful life and impairment test
1. Intangible assets include land use right, mining right, software, dumping right, patent right and
software copyright, which are initially measured at cost.
2. With regard to an intangible asset with limited useful life, its amortization amount shall be
systematically amortized within its useful life; if it is unable to determine the expected realization
pattern reliably, the intangible asset shall be amortized by using the straight-line method.
Mining rights are amortized by using the production method, while other intangible assets are
amortized by using the straight-line method. The specific amortization period are as follows:
Item Amortization period
(years)
Land use right 25-99
Software 2-10
Dumping right 5-20
Patent right and
8-10
software copyright
(2) Accounting policies for internal R&D expenses

127 / 262
Expenditures incurred during the research phase of internal R&D projects are included in current profit
or loss when they incur. Expenditure incurred during the development phase of internal R&D projects
will be recognized as an intangible asset if all of the following conditions are met:(1) it is feasible
technically to finish the intangible asset for use or sale; (2) it is intended to finish and use or sell the
intangible asset; (3) the usefulness of methods for the intangible asset to generate economic benefits can
be proved, including being able to prove that there is a potential market for the products manufactured
by applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally; (4) it is able to finish the development of the intangible asset,
and able to use or sell the intangible asset, with the support of sufficient technologies, financial resources
and other resources; and (5) the expenditure attributable to the intangible asset during its development
phase can be measured reliably.
Specific criteria for classifying whether an internal R&D project is in the research phases or in the
development phase: the phase during which a planned investigation is conducted to acquire new
technology and knowledge will be determined as the research phase, which is characterized by planning,
exploration and others; the phase during which the research findings or other knowledge are applied to a
certain plan or design for the production of new or substantially improved materials, devices, or products
before the start of commercial production or use will be determined as the development phase, which is
characterized by the pertinence, the possibility of forming the results and others.
30. Long-term asset impairment

For long-term equity investments, fixed assets, construction in progress, right of use assets, intangible
assets with limited useful life, and other long-term assets, the recoverable amount thereof will be
estimated if there is indication of impairment on the balance sheet date. An impairment test will be
conducted each year for the goodwill formed due to business combination and intangible assets with
indefinite useful lives, whether or not there is any indication of impairment. Goodwill will be tested for
impairment in combination with its related asset groups or asset group portfolio.
If the recoverable amount of any of the said long-term assets is less than its book value, provision for
assets impairment will be made at the difference, which will be included in the current profit or loss.
31. Long-term deferred expenses

The long-term deferred expenses refer to the various expenses that have been incurred but that shall be
amortized within a period of more than one year (exclusive).Long-term deferred expenses are
recognized at the amount actually incurred, and evenly amortized by stages over the period of benefit or
prescribed period. If an item of long-term deferred expenses cannot bring any benefit in future
accounting periods, the amortized value of the unamortized item will all be transferred to the current
profit or loss.
32. Contract liabilities

Recognition method for contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between its performance of fulfillment obligations and customer payments. The Company
presents the contract assets and contract liabilities under the same contract at their net amount after
offsetting each other.
The Company recognizes the right to receive consideration from customers unconditionally (i.e., only
depending on the passage of time) as receivables, and recognizes the right to receive consideration upon
the transfer of goods to customers (depending on factors other than passage of time) as contract assets.
The Company recognizes the obligation to transfer goods or services to a customer for which the
Company has received consideration (or an amount of consideration is due) from the customer as
contract liability.
128 / 262
33. Employee compensations

(1) Accounting treatment of short-term compensations
The Company will, during the accounting period when employees provide services for the Company,
recognize the short-term employee compensations actually incurred as liabilities and include the same to
the current profit or loss or the cost of relevant assets.
(2) Accounting treatment of post-employment benefits

Post-employment benefits are classified into the defined contribution plan and the defined benefit plan.
(1) During the accounting period when employees render services to the Company, the amount payable
under the defined contribution plan is recognized as liabilities, and included in the current profit or loss
or the cost of relevant assets.
(2) Accounting treatment for the defined benefit plan generally include the following steps:
1) For the defined benefit plan, the Company estimates the relevant demographic variables and financial
variables based on the expected use unbiased and mutually consistent actuarial assumptions with the
estimated accumulated benefit unit method, measures obligations arising from the defined benefit plans
and recognizes the relevant vesting period of the relevant obligations. Meanwhile, the Company
discounts the obligations arising from defined benefit plans to present value, in order to determine the
present value and current service cost of defined benefit plan obligation;
2) For the assets under the defined benefit plan, a net liability or net asset in connection with the defined
benefit plan will be recognized at the present value of the obligation under the defined benefit plan less
the deficit or surplus arising out of the fair value of the assets. For a surplus under the defined benefit
plan, the Company will measure the net assets of such defined benefit plan at the surplus of such defined
benefit plan or the upper limit of assets thereunder, whichever is lower.
3) At the end of the period, the costs of employee compensations arising from the defined benefit plan
will be recognized as the net interest of the service costs, net liabilities or net assets of the defined
benefit plan. Change of net liabilities or net assets of the defined benefit plan will be re-measured.
Specifically, the net interests of the service costs and net liabilities or net assets of the defined benefit
plan will be included in the current profit or loss or the cost of relevant assets. Changes due to the
re-measurement of net defined benefit liabilities or assets will be included in other comprehensive
income and will not be reversed into the profit or loss during the subsequent accounting period, but the
amount recognized in other comprehensive income may be transferred within the equity scope.
(3) Accounting treatment of dismissal welfare

Where the Company provides dismissal welfare to employees, employee compensations incurred from
dismissal benefits are recognized as liabilities and included in the current profit or loss at the following
date, whichever is earlier: (1) when the Company is unable to unilaterally withdraw the dismissal
benefits provided in the plan on the cancellation of labor relationship or the layoff proposal; (2) when
the Company recognizes the cost related to the restructuring concerning the dismissal benefits payment.
(4) Accounting treatment of other long-term employee benefits

Other long-term employee benefits provided to employees which are in conformity with the defined
contribution plan are accounted for according to the accounting principle of the defined contribution
plan. Other long-term employee benefits are accounted for according to the accounting principle of the
defined benefit plan. To simplify the accounting treatment, the total net amount of items such as
employee compensation costs recognized as service costs, net interest amount of net liabilities or net
assets of other long-term employee benefits and changes in the re-measurement of net liabilities or net
assets of other long-term employee benefits is included in the current profit or loss or cost of related
assets.
129 / 262
34. Lease liabilities

The Company recognizes the present value of the unpaid lease payment as a lease liability on the
beginning date of the lease term. When calculating the present value of a lease payment, the Company
uses the interest rate implicit in the lease as the discount rate. If the interest rate implicit in the lease
cannot be determined, the Company uses the incremental loan interest rate as the discount rate. The
difference between the lease payment and its present value is regarded as un-recognized financing
expense. During each period of the lease term, the interests expense is recognized at the discount rate
used in recognizing the present value of the lease payment, and is included in the current profit or loss.
The amount of variable lease payments not considered in the measurement of lease liabilities will be
included in the current profit or loss when they actually incur.
In case of any change in the substantial fixed payment, the expected payable under the residual
guarantee, the index or ratio used to determine the lease payment, the evaluation results or actual
exercise of the purchase option, renewal option or termination option after the beginning date of the
lease term, the Company will re-measure the lease liability according to the present value of the changed
lease payment, and adjusts the book value of the right of use asset accordingly. If the book value of the
right of use asset has been reduced to zero, but the lease liability still needs to be further reduced, the
remaining amount will be included in the current profit or loss.
35. Estimated liabilities

1. When the obligations generated from contingencies such as providing guarantee for others,
contentious matters, products quality guarantee and onerous contract are present obligations of the
Company, the performance of such obligations is likely to result in outflow of economic benefits from
the Company and if the amount of the obligations can be measured reliably, the Company will recognize
such obligations as estimated liabilities.
2. The estimated liabilities of the Company are initially measured as the best estimate of expenses
required for the performance of relevant present obligations, and the book value of the estimated
liabilities will be reviewed on the balance sheet date.
36. Share-based payment

1. Classification of share-based payments
Share-based payments are classified into the equity-settled share-based payments and the cash-settled
share-based payments.
2. Accounting treatment related to implementation, modification and termination of share-based
payment plans
(1) Equity-settled share-based payments
As to an equity-settled share-based payment in return for services of employees, if the right may be
exercised immediately after the grant, the fair value of the equity instruments will be included into
relevant costs or expenses, and capital reserves will be adjusted accordingly. As to an equity-settled
share-based payment in return for services of employees, if the right cannot be exercised until the
vesting period comes to an end or until the prescribed performance conditions are met, then the services
obtained in the current period will, based on the best estimate of the number of the equity instruments
with the exercisable rights, be included in the relevant costs or expenses on each balance sheet date
within the waiting period, and the capital reserves will be adjusted accordingly at the fair value of the
equities instruments on the date of grant.
As to equity-settled share-based payments in return for the services of other parties, if the fair value of
the services of other parties can be reliably measured, then the measurement will be made at the fair
value of those services on their acquisition date. If the fair value of the services of other parties cannot
be reliably measured, but the fair value of the equity instruments can be reliably measured, then the fair
value of the equity instruments on the service acquisition date will be included in relevant costs or
expenses, and the owners’ equity will be increased accordingly.
(2) Cash-settled share-based payments
As to cash-settled share-based payments in return for the services of employees, if the right may be
exercised immediately after the grant, then the fair value of the liabilities undertaken by the Company
130 / 262
will be included in the relevant costs or expenses on the date of the grant, and the liabilities will be
increased accordingly. If the right may not be exercised until the vesting period comes to an end or until
the specified performance conditions are met, then the services obtained in the current period will, based
on the best estimate of the circumstances under which the right will be exercisable, be included in
relevant costs or expenses and the corresponding liabilities at the fair value of the liability undertaken by
the enterprise on each balance sheet date within the vesting period.
(3) Modification and termination of share-based payment plans
If the modification increases the fair value of an equity instrument granted, then the Company will
accordingly recognize the increase in services obtained according to the increase in the fair value of the
equity instrument. If the modification increases the quantity of equity instruments granted, then the
Company will accordingly recognize the increase in services obtained according to the increase in the
fair value of the equity instruments. If the Company modifies the vesting conditions in a way that is
favorable to the employee, then it will consider the modified vesting conditions when dealing with
vesting conditions.
If the modification decreases the fair value of an equity instrument granted, then the Company will
recognize the amount of services obtained based on the fair value of the equity instrument on the grant
date, without considering the decrease in the equity instrument’s fair value. If the modification decreases
the quantity of equity instruments granted, then the Company will treat the decrease as the cancellation
of equity instruments granted. If the Company modifies the vesting conditions in a way that is
unfavorable to the employee, then it will not consider the modified vesting conditions when dealing with
vesting conditions.
If the Company cancels an equity instrument granted during the waiting period (except for cancellations
made for failing to meet the vesting conditions), it will treat such cancellations as accelerations of
vesting and will immediately include the amount that should be recognized during the remaining waiting
period in the current profit or loss.
37. Preference shares, perpetual bonds and other financial instruments

38. Income
(1) Accounting policies used in recognizing and measuring income
1. Principles for recognizing income
On the commencement date of a contract, the Company evaluates the contract to identify each
contractual obligation contained therein and determines whether each contractual obligation is subject to
performance within a certain period of time or at a certain point in time.
A contractual obligation will be deemed as being subject to performance within a certain period of time
if it meets any of the following conditions; otherwise, it will be deemed as being subject to performance
at a certain point in time: (1) the customer obtains and consumes the economic benefits brought by the
Company’s performance of the contract at the same time as the Company’s performance of the contract;
(2) the customer can control the goods under construction during the performance of the contract; (3) the
goods produced during the Company’s performance of the contract have irreplaceable uses, and the
Company is entitled to be paid for the contractual obligations that have been performed so far during the
whole contract period.
For obligations subject to performance within a certain period of time, the Company recognizes income
pursuant to the progress of performance. If the progress of performance cannot be reasonably
determined, but the cost incurred by the Company can be expected to be compensated, income will be
recognized according to the amount of the cost incurred until the progress of performance can be
reasonably determined. For obligations subject to performance at a certain time point, the Company
recognizes income when the customer obtains control of the relevant goods. In judging whether the
customer has obtained control of the relevant goods, the Company will consider the following
indications: (1) the Company has the current right to receive payment for the goods, that is, the customer
has the current obligation to pay for the goods; (2) the Company has transferred the legal ownership of
the goods to the customer, that is, the customer already has the legal ownership of the goods; (3) the
Company has physically transferred the goods to the customer, that is, the customer is in physical
possession of the goods; (4) the Company has transferred the main risks and rewards of ownership of the
131 / 262
goods to the customer, that is, the customer has obtained the main risks and rewards of ownership of the
goods; (5) the customer has accepted the goods; and (6) other indications that the customer has obtained
control of the goods.
2. Principles for measuring income
(1) The Company measures income according to the transaction price corresponding to each contractual
obligation. The “transaction price” is the amount of consideration that the Company expects to receive
for the goods or services transferred to the customer, excluding payments received on behalf of third
parties and expected refunds to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of the
variable consideration based on the expected value or the most likely amount, but the transaction price
including variable consideration should not exceed the amount of accumulated recognized income that is
highly unlikely to result in a significant reversal when the relevant uncertainty is eliminated.
(3) If there is a significant financing component in the contract, the Company determines the transaction
price based on the amount assumed to be paid in cash when the customer obtains control of the goods.
The difference between the transaction price and the contract consideration is amortized by using the
effective interest method over the contract period. If, on the commencement date of the contract, the
Company expects that the interval between the customer’s obtaining of control over the goods or
services and the customer’s payment of the price does not exceed one year, the significant financing
component in the contract will not be considered.
(4) If the contract contains two or more performance obligations, the Company will allocate the
transaction price to each performance obligation according to the relative proportion of the selling price
of the goods covered by each individual performance obligation.
3. Specific method for recognizing income
The Company mainly sells cobalt products, copper products, nickel products, ternary precursors, cathode
materials, nickel intermediates, lithium products and other products, which are obligations subject to
performance at a certain time point. Domestic sales income is recognized when the Company has
transported the goods to the delivery place agreed in the contract and such goods have been accepted by
the customer, the Company has received payment or obtained payment rights, and relevant economic
benefits are likely to flow into the Company. Export sales income is recognized when the Company has
declared the product in accordance with the provisions of the contract, obtained a bill of lading, received
payment for the goods or obtained the right to receive payment, and relevant economic benefits are
likely to flow into the Company.
(2) Differences in accounting policies for recognition of income caused by the adoption of
different business models for similar businesses
39. Contract costs

The Company’s assets related to contract costs include contract acquisition costs and contract
performance costs.
If any incremental cost incurred by the Company to obtain a contract is expected to be recovered, it will
be regarded as a contract acquisition cost and recognized as an asset. If the amortization period of the
contract acquisition cost does not exceed one year, it is directly included in the current profit or loss
when incurred.
If the cost incurred by the Company in performing the contract is not applicable to relevant standards for
inventories, fixed assets or intangible assets, and all of the following conditions are met, such a cost will
be categorized as a contract performance cost and recognized as an asset:
1. The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing costs (or similar costs), costs clearly borne by the customer, and other costs incurred
solely because of the contract;
2. The cost increases the resources that the Company will use to fulfill its performance obligations in the
future;
3. The cost is expected to be recovered.
The Company amortizes assets related to contract costs on the same basis as the recognition of income
from goods or services related to the asset and includes them in the current profit or loss.
132 / 262
If the book value of the asset related to the contract cost is higher than the difference between the
residual consideration expected to be obtained by the Company due to the transfer of the goods or
services related to the assets and the estimated cost to be incurred for the transfer of relevant goods, a
provision for impairment will be made for the excess part and such excess part will be recognized as a
loss from asset impairment. If the factors of impairment in the previous period change later, causing that
the difference between the two items mentioned above is higher than the book value of the asset, the
provision for asset impairment that was originally accrued will be reversed and included in the current
profit or loss, but the reversed book value of the asset shall not exceed the book value of the asset on the
date of reversal under the assumption that no provision for impairment is made.
40. Government subsidies

1. Government subsidies are recognized when they meet all of the following conditions: (1) the
Company can meet the conditions attached to the government subsidies; and (2) the Company can
receive the government subsidies. If a government subsidy is a monetary asset, it is measured at the
amount received or receivable. If a government subsidy is a non-monetary asset, it is measured at its fair
value; if the fair value cannot be obtained in a reliable way, it is measured at the nominal amount.
2. Judgment basis or accounting treatment method for government subsidies related to assets
A government subsidy which is designated in the government documents to be used for purchasing,
constructing or otherwise forming long-term assets is classified as a government subsidy related to assets.
For a government subsidy which is not designated in the government documents to be used for a specific
purpose, judgment is made based on the basic conditions that must be met to obtain the subsidy, and
such a government subsidy obtained on the condition of purchasing, constructing or otherwise forming
long-term assets is deemed as a government subsidy related to assets. Government subsidies related to
assets will either be used to offset the book value of the related assets or be recognized as deferred
income. If a government subsidy related to assets is recognized as deferred income, it is included in the
current profit or loss by a reasonable and systematic method within the useful life of the relevant assets.
Government subsidies measured at a nominal amount will be directly included in the current profit or
loss. Where the relevant asset is sold, transferred, scraped or damaged before the end of its useful life,
balance of the relevant unallocated deferred income is transferred to the current profit or loss on asset
disposal.
3. Judgment basis or accounting treatment method for government subsidies related to income
The government subsidies other than the government subsidies related to assets are classified as
government subsidies related to income. For a government subsidy related to both assets and income, if
it is difficult to distinguish between the part related to assets and the part related to income, it will be
generally classified as a government subsidy related to income. If a government subsidy related to
income is used to compensate the Company’s relevant expense or loss in future periods, such a
government subsidy will be recognized as deferred income and either included in the current profit or
loss, or used to offset relevant costs during the period of recognizing relevant expenses or losses. If a
government subsidy related to income is used to compensate the Company’s relevant expense or loss
incurred, such a government subsidy will be directly included into the current profit or loss or offset
relevant costs.
4. Government subsidies related to the daily activities of the Company will, according to the nature of
the business transaction, be included in the other income or used to offset relevant costs. Government
subsidies irrelevant to the daily activities of the Company will be included in non-operating income or
expenses.
5. Accounting treatment method related to interest subsidies for policy-based preferential loans
(1) Where the interest subsidies are allocated to lending banks by the financial department and the
lending banks provide the Company with loans at preferential interest rates, the Company will recognize
the recording value of the loan amount actually received and calculate relevant loan expenses based on
the loan principal and the preferential interest rate.
(2) Where the interest subsidies are allocated to the Company directly by the financial department, the
Company will use the interest subsidies to offset relevant loan expenses.
41. Deferred income tax assets/deferred income tax liabilities

133 / 262
1. A deferred income tax asset or deferred income tax liability is measured according to the difference
between the carrying amount of the asset or liability and its tax base (as for an item that has not been
recognized as an asset or liability, if its tax base can be determined in light of the tax law, the difference
between the tax base and its carrying amount shall be recognized), and recognized at the tax rate
applicable to the period during which the asset is expected to be recovered or the liability is expected to
be settled.
2. The Company recognizes a deferred income tax asset to the extent of the amount of the taxable
income which it is most likely to obtain, and which can be deducted from the deductible temporary
difference. If, on the balance sheet date, there is any exact evidence showing that it is likely to acquire a
sufficient amount of taxable income tax in a future period to offset against the deductible temporary
difference, the deferred tax assets unrecognized in prior periods will be recognized.
3. The book value of a deferred income tax asset will be re-examined on the balance sheet date. If it is
unlikely to obtain sufficient taxable income to offset the benefit of the deferred income tax asset, the
book value of the deferred income tax asset will be written down. When it is probable to obtain
sufficient taxable income, such write-down amount will be subsequently reversed.
4. The current income tax and deferred income tax of the Company are recognized as income tax
expenses or gains and included in the current profit or loss, except for the income tax arising from the
following situations: (1) business combination; (2) transactions or events directly recognized in owner’s
equity.
42. Lease
(1) Accounting treatment of operating lease
(2) Accounting treatment of finance lease

(3) Determination method and accounting treatment method for leases under the new leasing
standards
1. The Company as the lessee
On the beginning date of the lease term, the Company recognizes a lease that has a lease term of no
more than 12 months and does not include the purchase option as a short-term lease, and recognizes a
single leased asset which is a new asset with lower value as a low-value asset lease. Where the Company
sub-leases or anticipates sub-leasing a leased asset, the original lease is not recognized as a low-value
asset lease.
For all short-term leases and low-value asset leases, the Company includes the lease payments in
relevant asset costs or the current profit or loss in accordance with the straight-line method during each
period of the lease term.
Except for the short-term leases and low-value asset leases that adopt the simplified treatment mentioned
above, the Company recognizes the leases as right-of-use assets and lease liabilities on the beginning
date of the lease term.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost. Such cost includes: 1) the initial measurement amount
of lease liabilities; 2) in case of lease incentive in the lease payment paid on or before the lease
commencement date, relevant amount of the lease incentive that has been enjoyed shall be deducted; 3)
the initial direct expenses incurred by the Company as the lessee; 4) the costs that the Company, as the
lessee, expects to incur for dismantling and removing the leased assets, restoring the site where the
leased assets are located, or restoring the assets to the state agreed in the lease terms.
The Company depreciates right-of-use assets by using the straight-line method. If there is a reasonable
assurance that the ownership of a leased asset can be acquired when the lease term expires, the lease
asset will be depreciated over its remaining useful life. If there is no reasonable assurance that the
ownership of the leased asset can be acquired when the lease term expires, the leased asset will be
depreciated within the lease term or the remaining useful life of the leased asset, whichever is shorter.
(2) Lease liabilities
134 / 262
The Company recognizes the present value of the unpaid lease payment as a lease liability on the
beginning date of the lease term. When calculating the present value of a lease payment, the Company
uses the interest rate implicit in the lease as the discount rate. If the interest rate implicit in the lease
cannot be determined, the Company uses the incremental loan interest rate as the discount rate. The
difference between the lease payment and its present value is regarded as un-recognized financing
expense. During each period of the lease term, the interest expense is recognized at the discount rate
used in recognizing the present value of the lease payment, and is included in the current profit or loss.
The amount of variable lease payments not considered in the measurement of lease liabilities will be
included in the current profit or loss when they actually incur.
In case of any change in the substantial fixed payment, the expected payable under the residual
guarantee, the index or ratio used to determine the lease payment, the evaluation results or actual
exercise of the purchase option, renewal option or termination option after the beginning date of the
lease term, the Company will re-measure the lease liability according to the present value of the changed
lease payment, and adjust the book value of the right-of-use asset accordingly. If the book value of the
right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the
remaining amount will be included in the current profit or loss.
2. The Company as the lessor
On the beginning date of the lease term, the Company classifies the leases that have substantially
transferred all the risks and rewards related to the ownership of the lease assets as financing leases and
classifies all other leases as operating leases.
(1) Operating leases
The Company recognizes the amount of lease receipts as rental income by using the straight-line method
during each period of the lease term. The initial direct expenses incurred are capitalized and amortized
on the same basis as the recognition of rental income, and recognized in current profit and loss by each
period. The variable lease payments obtained by the Company related to operating leases that are not
included in the lease receipts are recognized in the current profit or loss when they actually incur.
(2) Financing leases
On the beginning date of the lease term, the Company recognizes the receivable financing lease
payments based on the net amount of the lease investment (the sum of the unguaranteed residual value
and the present value of the lease receipts that have not been received on the beginning date of the lease
term discounted at the implicit interest rate of the lease) and de-recognizes the financing lease assets.
During each period of the lease term, the Company calculates and recognizes interest income based on
the implicit interest rate of the lease.
The variable lease payments obtained by the Company that are not included in the measurement of net
lease investment are recognized in the current profit or loss when they actually incur.
3. After-sale leaseback
(1) The Company as the lessee
The Company evaluates and determines whether the asset transfer in the after-sale leaseback transaction
belongs to a sales transaction in accordance with the provisions of Accounting Standards for Business
Enterprises No. 14- Revenue.
If the asset transfer in the after-sale leaseback transaction belongs to a sales transaction, the Company
measures the right-of-use assets formed by the after-sale leaseback transaction at the portion of the
original asset book value related to the use rights obtained in the after-sale leaseback transaction, and
only recognizes the gain or loss with respect to the use rights transferred to the lessor.
If the asset transfer in the after-sale leaseback transaction does not belong to a sales transaction, the
Company will continue to recognize the transferred assets and recognize a financial liability equal to the
transfer income, and account for the financial liability in accordance with the Accounting Standards for
Business Enterprises No. 22- Recognition and Measurement of Financial Instruments.
(2) The Company as the lessor
The Company evaluates and determines whether the asset transfer in the after-sale leaseback transaction
belongs to a sales transaction in accordance with the provisions of Accounting Standards for Business
Enterprises No. 14- Revenue.
If the asset transfer in the after-sale leaseback transaction belongs to a sales transaction, the Company
conducts accounting treatment for the asset purchase in accordance with other applicable accounting
standards for enterprises, and conducts accounting treatment for asset lease in accordance with the
Accounting Standards for Enterprises No. 21- Lease.
135 / 262
If the asset transfer in the after-sale leaseback transaction does not belong to a sales transaction, the
Company does not recognize the transferred assets, but it recognizes a financial asset equal to the
transfer income and accounts for the financial asset in accordance with the Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
43. Other significant accounting policies and accounting estimates

1. Basis for adopting hedge accounting and the accounting treatment method
(1) Hedges include the fair value hedges, cash flow hedges, and hedges of net investment in an overseas
operation.
(2) The hedge accounting method will be used when the following conditions are met: 1) the hedging
relationship only consists of eligible hedging instruments and the hedged instruments; 2) at the
beginning of hedging, the Company officially designates the hedging instruments and hedged items and
prepares written documents on the hedging relationship, the Company’s risk management strategy, and
risk management objectives for hedging; 3) the hedging relationship meets the requirements for hedging
effectiveness.
When a hedge meets all of the following conditions, the Company determines that the hedging
relationship meets the requirements for hedging effectiveness: (1) there is an economic relationship
between the hedged item and the hedging instrument; (2) for the value change caused by the economic
relationship between the hedged item and the hedging instrument, the impact of credit risk is not
dominant; 3) the hedging ratio of the hedging relationship is equal to the ratio of the actual number of
hedged items hedged by the Company to the actual number of hedging instruments used, but does not
reflect the imbalance in the relative weights of the hedged items and hedging instruments.
The Company continuously evaluates whether the hedging relationship meets the requirements for
hedging effectiveness on the hedging start date and subsequent periods. If the hedging relationship no
longer meets the requirements for hedging effectiveness due to the hedging ratio, but the risk
management objectives specified for the hedging relationship have not changed, the Company will
re-balance the hedging relationship.
(3) Accounting treatment of hedges
1) Fair value hedges
a) The gain or loss generated by the hedging instrument is recognized in the current profit or loss. If the
hedging instrument is used to hedge an equity instrument not held for trading (or any component thereof)
that is measured at fair value through other comprehensive income, the gain or loss generated by the
hedging instrument is recognized in other comprehensive income.
b) The gain or loss arising from the risk exposure of the hedged item is recognized in the current profit
or loss, and the book value of the recognized hedged item that is not measured at fair value is adjusted at
the same time. If the hedged item is classified as a financial asset (or any component thereof) measured
at fair value through other comprehensive income in accordance with Article 18 of the Accounting
Standards for Business Enterprises No. 22- Recognition and Measurement of Financial Instruments, the
gain or loss arising from the hedged risk exposure is recognized in the current profit or loss, and the
book value that has been measured at fair value will not be adjusted. If the hedged item is an equity
instrument investment (or any component thereof) not held for trading that the Company chooses to
measure at fair value through other comprehensive income, the gain or loss arising from the hedged risk
exposure is included in other comprehensive income, and the book value that has been measured at fair
value will not be adjusted.
If the hedged item is a firm commitment (or any component thereof) that has not been recognized yet,
the cumulative change in fair value caused by the hedged risk after the designation of the hedging
relationship is recognized as an asset or liability, and the relevant gain or loss is included in the profits
and losses of each relevant period. When fulfilling a firm commitment to acquire an asset or assume a
liability, the initial recognition amount of the asset or liability is adjusted to include the cumulative
change in fair value of the hedged item that has been recognized.
If the hedged item is a financial instrument (or any component thereof) measured at amortized cost, the
adjustment made by the Company to the book value of the hedged item will be amortized at the effective
interest rate re-calculated on the amortization date and included in the current profit or loss. If the
hedged item is classified as a financial asset (or any component thereof) measured at fair value through
other comprehensive income in accordance with Article 18 of the Accounting Standards for Business
136 / 262
Enterprises No. 22- Recognition and Measurement of Financial Instruments, the cumulative hedging
gain or loss recognized will be amortized in the same way and included in the current profit or loss, but
the book value of the financial asset (or any component thereof) will not be adjusted.
2) Cash flow hedges
a) The portion of the gain or loss on the hedging instrument that is attributable to effective hedging is
recognized as cash flow hedge reserve and included in other comprehensive income, while the portion
that is attributable to the ineffective hedging is recognized in current profit or loss. The amount of cash
flow hedge reserve will be recognized at the absolute value of the following two items, whichever is
lower: A. the accumulative profit or loss on the hedging instrument as of the commencement of the
hedge; B. the cumulative change in the present value of expected future cash flows of the hedged item
since the commencement of the hedge.
b) When the hedged item is an expected transaction that causes the Company to subsequently recognize
a non-financial asset or non-financial liability, or when the expected transaction of the non-financial
asset and non-financial liability forms a firm commitment applicable to fair value hedging accounting,
the amount of cash flow hedge reserve originally recognized in other comprehensive income will be
transferred out and included in the initial recognition amount of the asset or liability.
c) For other cash flow hedges, the amount of cash flow hedge reserve originally included in other
comprehensive income will be transferred out and included in the current profit or loss during the same
period in which the gain or loss of the Company are affected by the estimated transaction of hedge.
(3) Hedges of net investment in an overseas operation
The portion of profit or loss on the hedging instrument that is attributable to effective hedge is
recognized as other comprehensive income, and will be transferred out and included in the current profit
or loss when disposing of the overseas operation. The portion of profit or loss on the hedging instrument
that is attributable to ineffective hedge is included in the current profit or loss.
2. Accounting treatment method related to the Company’s repurchase of its shares
Where the Company’s shares are repurchased due to reduction of registered capital or reward to
employees, the paid-up amount will be deemed as treasury stock, and recorded for future reference at the
same time. If the repurchased shares are cancelled, the differences between the total amount of the par
value of the shares and the paid-up amount for the repurchase calculated in accordance with the par
value and number of shares subject to cancellation will be offset against the capital reserve, or offset
against the retained earnings if the capital reserve is not enough for offset. If the reward of the
repurchased shares to the employees of the Company belongs to the equity-settled share-based payment,
the Company will write off the accumulated amount of the costs of treasury stocks and the capital
reserves within the vesting period (other capital reserves), and adjust the capital reserves (share premium)
based on the difference thereof when the employees exercise their rights to purchase the shares of the
Company and receive the payments.
3. Safety production costs
The safety production costs withdrawn by the Company in accordance with the provisions of the
Administrative Measures for the Withdrawal and Use of Enterprises’ Safety Production Costs (Cai Zi
[2022] No. 136) issued by the Ministry of Finance and the Ministry of Emergency Response are
included in the cost of relevant products or the current profit or loss, and recorded in the item of “special
reserve” as the same time. When withdrawn safe production costs are used within the prescribed range
and belong to expenses, such costs will be directly deducted from special reserve. Where a fixed asset
forms, incurred expenses are accumulated under the item “construction in progress” and are recognized
as fixed assets when the safe project is completed and reaches the conditions for its intended use.
Meanwhile, special reserve will be offset according to the costs of the fixed asset and accumulated
depreciation of the same amount will be recognized, and the fixed asset will no longer be depreciated in
the future.
4. Segment report
The company determines operating segments based on internal organizational structure, management
requirements, internal reporting systems, etc. An operating segment is a constituent part meeting all of
the following conditions:
1) The constituent part can generate income and expenses in routine activities;
2) The Company’s management is able to regularly evaluate the operating results of this constituent part
so as to determine the resources allocation and assess its performance;
3) The Company is able to obtain the financial position, operating results, cash flows and other relevant
accounting information of this constituent part.
137 / 262
5. Exploration expenses
Exploration expenses include the cost of obtaining exploration rights and various costs and expenses
incurred during the geological exploration process. The exploration process includes stages such as
pre-survey, general survey, detailed survey and exploration. Among them, the exploration expenses
related to detailed survey and exploration are capitalized and accumulated under the item of “other
non-current assets”. When the exploration is completed and there is a reasonable basis to determine that
a geological result can be achieved and the mining certificate is obtained, the balance of other
non-current assets is transferred to intangible assets. Where a geological result can be achieved, it is
included in the current profit or loss at once.
44. Changes in significant accounting policies and accounting estimates

(1) Changes in significant accounting policies
□Applicable □√Not applicable
(2) Changes in significant accounting estimates

(3) Adjustment of the beginning amount of the financial statements 2023 due to the
implementation of new accounting standards or their interpretations in the first time in 2023
45. Others
VI. Taxation
1. Main tax types and tax rates
Details of main tax types and tax rates
Tax type Tax basis Tax rate
VAT Value-added tax payable shall be
the difference obtained by the
output taxes calculated on the
basis of the revenue from the sale The main tax rates are 16%, 13%,
of goods and taxable services and 6%
calculated by tax laws less the
input taxes allowed to be deducted
for the current period.
Consumption tax
Business tax
Urban maintenance and
Actually paid turnover tax 7%、5%
construction tax
Enterprise income tax Please refer to the information of
enterprise income tax rates for
Taxable income
taxpayers applying different tax
rates
Mining tax Taxable income 3.5%, 10%
Property tax Where the tax is levied according 1.2%, 12%
to the price, the tax shall be
calculated and paid based on the
balance of the original value of the
housing property less a certain
proportion and the rate of 1.2%;
where the tax is levied according
138 / 262
to the rental, the tax shall be 12%

of the rental income.
Educational surcharges Actually paid turnover tax 3%
Local educational surcharges Actually paid turnover tax 2%
Information about taxpayers applying different enterprise income tax rates:

Name of taxpayer Income tax rate (%)
The Company, Huayou New Energy Quzhou, 15%
Tianjin B&M, Chengdu B&M, Jiangsu Huayou,
Guangxi Engineering
Beijing Huashan, Wenzhou Huake, Guangxi 20%
Huayou New Energy
Other domestic taxpayers other than the above 25%
Overseas companies Tax rate of its registered place
2. Tax preference
1. VAT
(1) Domestic companies
The Company and its subsidiary Huayou Quzhou and other production enterprises enjoy the tax policies
of “exemption, credit and refund” in exporting goods, with the tax refund rate of 0% and 13%; the
subsidiary Huayou Import & Export and other foreign trade enterprises enjoy the tax policies of
“exemption and refund” in exporting goods, with the tax refund rate of 0%-13%.
(2) Overseas companies
The tax rate for the subsidiaries CDM Company, MIKAS Company and OIM Company to export
products is 0%. The amount of VAT that can be deducted is greater than the amount of VAT payable;
the tax payable in the next month or subsequent months can be deducted or an application for tax refund
can be made.
In accordance with the decision of the Minister of Finance of the Republic of Indonesia, Huayue
Company, Huake Company, Huafei Company and Huashan Company shall enjoy the preferential policy
of import VAT exemption for some taxable goods.
2. Enterprise income tax
(1) Domestic companies
In accordance with the High-tech Enterprise Certificate jointly issued by the Department of Science and
Technology of Zhejiang Province, Zhejiang Provincial Department of Finance and Zhejiang Provincial
Tax Service, State Taxation Administration on December 1, 2020, the Company is recognized as a
high-tech enterprise. In accordance with the provisions of the Law of the People’s Republic of China on
Enterprise Income Tax, the Company shall enjoy preferential tax policies for high-tech enterprises in the
current enterprise income tax period, and shall pay tax at a reduced rate of 15%. In 2023, the Company
will submit a new application for recognition of its high-tech enterprise qualification to relevant
departments, and it is expected that the application will be approved. Therefore, the corporate income
tax for the current period will be temporarily calculated and paid at a reduced tax rate of 15% based on
the preferential tax policy for high-tech enterprises.
In accordance with the High-tech Enterprise Certificate jointly issued by the Department of Science and
Technology of Zhejiang Province, Zhejiang Provincial Department of Finance and Zhejiang Provincial
Tax Service, State Taxation Administration on December 16, 2021, Huayou New Energy Quzhou is
recognized as a high-tech enterprise. In accordance with the provisions of the Law of the People’s
Republic of China on Enterprise Income Tax, New Energy Quzhou shall enjoy preferential tax policies
for high-tech enterprises in the current enterprise income tax period, and shall pay tax at a reduced rate
of 15%.
In accordance with the High-tech Enterprise Certificate jointly issued by the Tianjin Municipal Science
and Technology Bureau, Tianjin Finance Bureau and Tianjin Municipal Tax Service, State Taxation
Administration on October 28, 2020, Tianjin B&M is recognized as a high-tech enterprise. In
accordance with the provisions of the Law of the People’s Republic of China on Enterprise Income Tax,
Tianjin B&M shall enjoy preferential tax policies for high-tech enterprises in the current enterprise
139 / 262
income tax period, and shall pay tax at a reduced rate of 15%. In 2023, the Company will submit a new
application for recognition of its high-tech enterprise qualification to relevant departments, and it is
expected that the application will be approved. Therefore, the corporate income tax for the current
period will be temporarily calculated and paid at a reduced tax rate of 15% based on the preferential tax
policy for high-tech enterprises.
In accordance with the High-tech Enterprise Certificate jointly issued by Jiangsu Provincial Department
of Science and Technology, the Department of Finance of Jiangsu Province and Jiangsu Provincial Tax
Service, State Taxation Administration on December 12, 2022, Jiangsu Huayou is recognized as a
high-tech enterprise. In accordance with the provisions of the Law of the People’s Republic of China on
Enterprise Income Tax, Jiangsu Huayou shall enjoy preferential tax policies for high-tech enterprises in
the current enterprise income tax period, and shall pay tax at a reduced rate of 15%.
In accordance with the Announcement on Continuing the Enterprise Income Tax Policies for the
Large-Scale Development of Western China (Announcement No. 23 [2020] of the Ministry of Finance),
Chengdu B&M shall enjoy preferential enterprise income tax policies for encouraged industries in
western China in the current enterprise income tax period, and shall pay tax at a reduced rate of 15%.
In accordance with the Announcement of the State Taxation Administration on Matters Relating to the
Implementation of Preferential Income Tax Policies to Support the Development of Small and
Low-profit Enterprises and Individual Businesses (Announcement No. 8 [2021] of the State Taxation
Administration) and the Announcement of the Ministry of Finance and the State Taxation Administration
on Further Implementing the Preferential Income Tax Policies for Small and Micro Enterprises
(Announcement No. 13 [2022] of the Ministry of Finance and the State Taxation Administration), the
subsidiaries Beijing Huashan, Wenzhou Huake and Guangxi Huayou New Energy meet the conditions
of small and low-profit enterprises. The amount not more than RMB 1 million shall be included in the
taxable income for 2022 at a reduced rate of 12.5%, and the enterprise income tax shall be paid at a rate
of 20%; the amount more than RMB 1 million but not more than RMB 3 million shall be included in the
taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at a rate of 20%.
In accordance with the Notice of the People’s Government of Guangxi Zhuang Autonomous Region on
Issuing Several Policies to Promote High-level, Open and High-quality Development of Guangxi Beibu
Gulf Economic Zone in the New Era (Gui Zheng Fa [2020] No. 42), the subsidiary Guangxi Engineering
is newly registered and established in the economic zone, and is recognized as a high-tech enterprise or
meets the conditions for enjoying the preferential enterprise income tax policies for China western
development, so it shall be exempt from the local share of enterprise income tax for 5 years from the tax
year in which it obtains the first main business income.
(2) Overseas companies
In accordance with the decision of the Minister of Finance of the Republic of Indonesia on Preferential
Policy on Enterprise Income Tax Relief for Huayue Company, Huayue Company shall be entitled to a
100% relief in enterprise income tax for 15 years starting from the tax year of commercial production,
exempt from the withholding tax of the income obtained by third parties from Huayue Company, and
entitled to a 50% relief in enterprise income tax for 2 years after the above relief expires.
Policy on Enterprise Income Tax Relief for Huake Company, Huake Company shall be entitled to a
exempt from the withholding tax of the income obtained by third parties from Huake Company, and
Policy on Enterprise Income Tax Relief for Huafei Company, Huafei Company shall be entitled to a
exempt from the withholding tax of the income obtained by third parties from Huafei Company, and
3. Import duty
In accordance with the decision of the Minister of Finance of the Republic of Indonesia, Huayue
Company, Huake Company, Huafei Company and Huashan Company shall enjoy the preferential policy
of exemption from import duties on imported machinery.
3. Others
140 / 262
VII. Notes to the Items in the Consolidated Financial Statements

1. Cash and bank balances
Item Ending balance Beginning balance
Cash in hand 12,164,515.33 25,777,978.79
Deposit in bank 8,396,578,433.95 8,030,335,929.04
Other cash and bank
7,022,735,052.73 7,379,661,572.84
balances
Total 15,431,478,002.01 15,435,775,480.67
Including: total amount
3,121,741,546.24 2,819,262,572.40
of overseas deposits
Deposit in finance
company
Other remarks:
The ending balance of other cash and bank balances include the bank acceptance deposit of RMB
3,736,964,573.19, letter of credit deposit of RMB 594,226,255.96, letter of guarantee deposit of RMB
6,052,500.00, loan deposit of RMB 1,187,604,570.24, forward foreign exchange settlement deposit of
RMB 239,432,279.13, deposited investment funds of RMB 1,248,184,048.02, other deposits of RMB
10,270,826.19. Among them, the restricted funds are RMB 5,774,551,004.71.
2. Held-for-trading financial assets

Financial assets measured at fair value
269,558,655.09 251,991,490.83
through current profit or loss
Including:
Short-term financial products 207,705,323.09 202,612,876.71
Financial assets designated to be
measured at fair value through current
profit or loss
Including:
Total 269,558,655.09 251,991,490.83
Other remarks:
3. Derivative financial assets

Total 922,943,639.96 608,711,611.68
Other remarks:
Please refer to “83. Hedges” in this section for details.
4. Notes receivable
(1) Notes receivable presented by categories
141 / 262
(2) Notes receivable that have been pledged as at the end of the period
(3) Notes receivable endorsed or discounted by the Company as at the end of the period but not
expired on the balance sheet date
(4) Notes receivable transferred to accounts receivable due to the failure of the drawer to perform
the contract as at the end of the period
(5) Classification according to different methods of provision for bad debts

(6) Details of the provision for bad debts

(7) Notes receivable actually written off in the current period

Other remarks:
5. Accounts receivable
(1) Disclosure by aging
Aging Ending book balance
Within 1 year
Including: each sub-item
Within 1 year 9,258,108,639.47
Sub-total 9,258,108,639.47
1 to 2 years 20,142,208.39
2 to 3 years 118,621.47
More than 3 years 17,695,889.69
3 to 4 years
4 to 5 years
More than 5 years
Total 9,296,065,359.02

Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category Proportion Book Proportion Book
Proportion value Proportion
Amount Amount of provision Amount Amount of provision value
(%) (%)
(%) (%)
Provision
for bad
debt made
904,548.00 0.01 904,548.00 100.00 5,628,944.86 0.07 5,628,944.86 100
on an
individual
basis
142 / 262
Including:
Account
receivables
with
individuall
y
insignifican
t amount 904,548.00 0.01 904,548.00 100.00 5,628,944.86 0.07 5,628,944.86 100
but subject
to
individual
provision
for bad
debts
Provision
for bad
8,036,9
debt made 9,295,160,8 483,784,52 8,811,37 8,477,138,97 440,190,504.
99.99 5.20 99.93 5.19 48,469.
on a 11.02 6.08 6,284.94 4.28 93
35
portfolio
basis
Including:
Aging 8,477,138,97 99.93 440,190,504. 5.19 8,036,9
9,295,160,8 483,784,52 8,811,37
portfolio 99.99 5.20 4.28 93 48,469.
11.02 6.08 6,284.94
35
9,296,065,3 / 484,689,07 / 8,811,37 8,482,767,91 / 445,819,449. / 8,036,9
Total 59.02 4.08 6,284.94 9.14 79 48,469.
35
Provision for bad debt made on an individual basis:

Monetary unit: Yuan Currency:
RMB
Ending balance
Name Provision for bad Proportion of Reason for making
Book balance
debt provision (%) provision
The companies are
facing operational
difficulties and it is
Other companies 904,548.00 904,548.00 100
expected that the
debts cannot be
recovered.
Total 904,548.00 904,548.00 100 /
Remarks to the provision for bad debt made on an individual basis:
Provision for bad debt made on a portfolio basis:

Items with provision made on a portfolio basis: aging portfolio
Ending balance
Name Proportion of provision
Accounts receivable Provision for bad debt
(%)
Within 1 year 9,258,108,639.47 462,905,431.98 5.00
1 to 2 years 20,142,208.39 4,028,441.68 20.00
2 to 3 years 118,621.47 59,310.73 50.00
Above 3 years 16,791,341.69 16,791,341.69 100.00
Total 9,295,160,811.02 483,784,526.08 5.20
Recognition criteria of and remarks on the provision for bad debts made on a portfolio basis:
143 / 262
The Company calculates expected credit loss by the exposure at default and the expected credit loss rate
for the entire duration by reference to the historical credit loss experience and taking into consideration
of the current situation and the forecast of future economic conditions. For the portfolio of accounts
receivable from external customers, the Company believes that customers with the same aging have
similar expected loss rates.
The aging of accounts receivable is analyzed based on the month in which the amounts are actually
incurred, with those incurred first being prioritized for settlement during fund turnover.
In case provision for bad debt is made for notes receivable according to the general model of expected
credit loss, please make disclosure in line with the disclosure method of other receivables:

Amount of change in the current period
Beginning Recovered Written-off
Category Provision Other Ending balance
balance or or charged
made change
reversed off
Account
receivables
with
provision
for bad 440,190,504.93 43,594,021.15 483,784,526.08
debts made
on the basis
of aging
portfolio
Account
receivables
with
individually
insignificant
amount but 5,628,944.86 4,724,396.86 904,548.00
subject to
individual
provision
for bad
debts
Total 445,819,449.79 43,594,021.15 4,724,396.86 484,689,074.08
In which, significant amount of provision for bad debt recovered or reversed in the current period:
(4) Accounts receivable actually written off in the current period

Item Amount that is written off
Accounts receivable actually written off 4,724,396.86
In which, significant amount of accounts receivable written off:

Whether the
Nature of Write-off
Amount that is Reason for payment is
Unit name accounts procedures
written off write-off generated from any
receivable performed
related transaction
144 / 262
Shenzhen Payment for 4,724,396.86 It cannot be Approved by the No

Jinheneng goods recovered. Chairman by
Battery signature
Technology
Co., Ltd
Total / 4,724,396.86 / / /
Remarks to write-offs of accounts receivable:
(5) Top 5 accounts receivable in terms of the ending balance presented by debtors:
(6) Accounts receivable de-recognized due to transfer of financial assets

(7) Amount of assets or liabilities arising from transfer of accounts receivable and continued
involvement
Other remarks:
The total amount of top 5 ending balances of accounts receivable is RMB 4,934,192,986.44, accounting
for 53.08% of the total ending balance of accounts receivable, and the corresponding provision for bad
debts is RMB 246,709,649.32
6. Accounts receivable financing

Bank acceptance bill 2,158,160,473.89 2,437,994,963.68
Total 2,158,160,473.89 2,437,994,963.68
Increase/decrease of accounts receivable financing and changes in fair value in the current period:
In case provision for bad debt is made for notes receivable according to the general model of expected
credit loss, please make disclosure in line with the disclosure method of other receivables:
Other remarks:
(1) There was no accounts receivable financing actually written off in this period.
(2) Notes receivable that have been pledged as at the end of the period
Amount pledged as
Item at the end of the
period
Bank acceptance bill 507,584,900.22
Sub-total 507,584,900.22
(3) Notes receivable already endorsed or discounted by the Company and not expired on the balance
sheet date as at the end of the period
Amount de-recognized as at
Item
the end of the period
Bank acceptance bill 5,072,777,888.28
Sub-total 5,072,777,888.28
145 / 262
The acceptors of bank acceptance bills are commercial banks. Due to the high credit standing of
commercial banks, the possibility of bank acceptance bills not being paid upon maturity is low.
Therefore, the Company de-recognizes the endorsed or discounted bank acceptance bills. However, if
such bills are not paid upon maturity, according to the provisions of the Negotiable Instruments Law, the
Company will still be jointly and severally liable to the holders.
7. Advances to suppliers
(1) Advances to suppliers presented by aging
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 1,262,198,112.97 81.38 1,506,407,435.76 92.15
1 to 2 years 272,624,843.48 17.58 122,511,677.38 7.49
2 to 3 years 12,574,886.17 0.81 3,100,030.75 0.19
More than 3
3,617,020.17 0.23 2,700,720.11 0.17
years
Total 1,551,014,862.79 100.00 1,634,719,864.00 100.00
Remarks to reasons for failure in timely settling the advances to supplier with the aging over 1 year and
major amount:
As for the beginning balance and ending balance of advance to supplier related to Panzhihua Qixing
Optoelectronic Technology Co., Ltd. and KONKOLA COPPER MINES PLC, it is expected that they
cannot supply the materials or the amount cannot be recovered due to their inability to perform the
contracts for poor management. Therefore, a full provision for impairment of RMB 30,362,808.26 was
made.
(2) Top 5 advance to suppliers in terms of the ending balance presented by suppliers
Other remarks:
The total amount of top 5 ending balance of advance to suppliers is RMB 689,000,738.42, accounting
for 43.57% of the total ending balance of advance to suppliers.
Presented by items
Interests receivable
Dividends receivable 163,980,830.12
Other receivables 499,154,860.53 416,647,483.37
Total 499,154,860.53 580,628,313.49
Other remarks:
(1) Classification of interests receivable
(2) Significant overdue interests

146 / 262
(3) Provision for bad debt

Other remarks:
(1) Dividends receivable
(2) Major dividends receivable with aging over 1 year


Other remarks:
Other receivables
Aging Ending balance
Within 1 year
Within 1 year 403,219,389.48
Sub-total 403,219,389.48
1 to 2 years 139,211,158.98
2 to 3 years 28,320,275.66
More than 3 years 38,359,495.01
3 to 4 years
4 to 5 years
More than 5 years
Total 609,110,319.13
(5) Classification by nature of funds

Nature of funds Ending book balance Beginning book balance
Cash pledge and security deposit 459,071,047.87 285,075,139.30
Export tax refund 121,233,498.02 152,131,678.48
Reserves 10,473,321.17 9,310,639.23
Temporary borrowings 16,284,969.61 15,425,952.02
Others 2,047,482.46 12,091,426.01
Total 609,110,319.13 474,034,835.04

Provision for bad Phase I Phase II Phase III
Total
debt Expected credit Expected credit loss Expected credit loss
147 / 262
loss in the next over the entire over the entire

12 months existence (without existence (with
credit impairment) credit impairment)
Balance as of
9,406,552.49 16,956,157.75 31,024,641.43 57,387,351.67
January 1, 2023
Balance as of
January 1, 2023 in
the current period
--Transferred to
-6,960,557.95 6,960,557.95
Phase II
--Transferred to
-5,664,055.13 5,664,055.13
Phase III
--Reversed to
Phase II
--Reversed to
Phase I
Provision made in
24,013,773.35 12,723,397.30 15,830,936.28 52,568,106.93
the current period
Reversal in the
current period
Write-off in the
current period
Charge off in the
current period
Other change
Balance as of June
26,459,767.89 30,976,057.87 52,519,632.84 109,955,458.60
30, 2023
Changes in book balance of other receivables with significant change in the amount of provision for loss
in the current period
Amount of provision for bad debts in the current period and the basis for evaluating whether the credit
risk of the financial instruments has significantly increased:

(8) Other receivables actually written off in the current period

(9) Top 5 other receivables in terms of the ending balance presented by debtors
Proportion in the
Ending balance
Nature of total ending
Unit name Ending balance Aging of provision for
funds balance of other
bad debt
receivables (%)
Export tax
Export tax
refund 121,233,498.02 Within 1 year 19.90
refund
receivable
148 / 262
Within 1 year:
RMB
Cinda Financial Cash pledge
20,100,000.00
Leasing Co., and security 111,600,000.00 18.32 19,305,000.00
1 to 2 years:
Ltd. deposit
RMB
91,500,000.00
Guangxi Youjia
Cash pledge
Supply Chain
and security 56,000,000.00 Within 1 year 9.19 2,800,000.00
Management
deposit
Co., Ltd
Within 1 year:
EverBright RMB
Cash pledge
Financial 37,500,000.00;
and security 52,500,000.00 8.62 4,875,000.00
Leasing Co., 1 to 2 years:
deposit
Ltd. RMB
15,000,000.00
Guangxi
Liangwan
Cash pledge
Ronghe Supply
and security 44,000,000.00 Within 1 year 7.22 2,200,000.00
Chain
deposit
Management
Co., Ltd
Total / 385,333,498.02 / 63.26 29,180,000.00
(10) Receivables involving government subsidies

(11) Other receivables de-recognized due to transfer of financial assets

(12) Amount of assets or liabilities arising from transfer of other receivables and continued
involvement
Other remarks:
9. Inventories
(1) Classification of inventories
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item provision for provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
cost cost
Raw
10,406,355,314.14 11,713,518.16 10,394,641,795.98 9,474,980,852.67 208,141,643.64 9,266,839,209.03
materials
Goods in
3,437,584,889.90 15,124,868.74 3,422,460,021.16 3,393,242,911.46 42,687,233.53 3,350,555,677.93
production
149 / 262
Goods in
3,571,442,040.15 128,953,721.70 3,442,488,318.45 4,828,740,835.73 321,960,882.29 4,506,779,953.44
stock
Revolving
materials
Consumptive
biological
assets
Contract
performance
cost
Materials for
consigned 404,238,168.17 404,238,168.17 571,492,339.50 3,644,503.40 567,847,836.10
processing
Total 17,819,620,412.36 155,792,108.60 17,663,828,303.76 18,268,456,939.36 576,434,262.86 17,692,022,676.50
(2) Provision for inventory depreciation or provision for impairment of contract performance
cost
Increase in the current Decrease in the current
Beginning period period
Item Ending balance
balance Reversed or
Provision made Others Others
charged-off
Raw
208,141,643.64 196,428,125.48 11,713,518.16
materials
Goods in
42,687,233.53 27,562,364.79 15,124,868.74
production
Goods in
321,960,882.29 18,786,617.48 211,793,778.07 128,953,721.70
stock
Revolving
materials
Consumptive
biological
assets
Contract
performance
cost
Materials for
consigned 3,644,503.40 3,644,503.40
processing
Total 576,434,262.86 18,786,617.48 439,428,771.74 155,792,108.60
(3) Remarks to the ending balance of inventories containing amount of capitalization of

borrowing costs
(4) Remarks to the amortization amount of contract performance cost

Other remarks:
150 / 262
10. Contract assets

(1) Details of contract assets
(2) Amount of and reason for major changes in the book value during the reporting period
(3) Provision for impairment of contract assets in the current period

Other remarks:
11. Held-for-sale assets

12. Non-current assets maturing within one year

13. Other current assets

Contract acquisition cost
Cost of returned goods
VAT input tax to be deducted or
2,825,701,729.72 2,721,895,467.94
refunded
Enterprise income tax prepaid 107,857.76 169,242,349.00
Total 2,825,809,587.48 2,891,137,816.94
Other remarks:
None
14. Debt investments

(1) Details of debt investments
(2) Major debt investments as at the end of the period
(3) Provision for impairment
15. Other debt investments

(1) Details of other debt investments
(2) Major other debt investments as at the end of the period
(3) Provision for impairment
Other remarks:
151 / 262
16. Long-term receivables

(1) Details of long-term receivables
Range
Provisio Provisio
of
Item n for n for
Book balance Book value Book balance Book value discou
bad bad
nt rate
debt debt
Finance lease payments
Including:
unrealized financing
income
Installment proceeds
from sale of goods
Installment proceeds
from rendering of
services
LA SOCIETE
IMMOBILIERE DU 1,275,173.06 1,275,173.06 1,229,077.79 1,229,077.79 N/A
CONGO
Sinomines Co., Ltd
42,504,323.34 42,504,323.34 40,967,866.58 40,967,866.58 N/A
(“Sinomines”)
GECAMINES 2,125,288.43 2,125,288.43 2,048,462.98 2,048,462.98 N/A
LA PROVINCE DU
16,351,474.68 16,351,474.68 15,760,397.55 15,760,397.55 N/A
LUALABA
Veinstone Investment 118,271,844.8
118,271,844.88 113,996,572.80 113,996,572.80 N/A
Limited 8
Indonesia Weidabe
200,732,724.0
Industrial Park Co., 200,732,724.00 193,476,588.00 193,476,588.00 N/A
0
Ltd. (“IWIP”)
PT Prima Puncak 133,301,115.0
133,301,115.02 118,815,888.59 118,815,888.59 N/A
Mulia (“PPM”) 2
514,561,943.4
Total 514,561,943.41 486,294,854.29 486,294,854.29 /
1

(3) Long-term receivable de-recognized due to transfer of financial assets

(4) Amount of assets or liabilities arising from transfer of long-term receivable and continued
involvement
Other remarks:
1) GECAMINES, LA SOCIETE IMMOBILIERE DU CONGO and SICOMINES
In accordance with the Agreement on Establishment of Joint Venture signed by the Company and
GECAMINES, LA SOCIETE IMMOBILIERE DU CONGO, China Railway Group (Hong Kong)
Limited, Resource Development Branch of China Railway Co., Ltd., SINOHYDRO Corporation
Limited, Sinohydro Harbour Co., Ltd. and China Metallurgical Group Corporation in September
152 / 262
2008 and the Confirmation of Equity Adjustment signed by the Company and China Railway (Hong
Kong) Engineering Co., Ltd. and SINOHYDRO RESOURCES LIMITED on October 23, 2013, the
Company shall provide GECAMINES and LA SOCIETE IMMOBILIERE DU CONGO with a loan
of USD294,125.00 (equivalent to RMB2,125,288.43 at the exchange rate at the end of June 2023)
and USD176,475.00 (equivalent to RMB1,275,173.06 at the exchange rate at the end of June 2023)
respectively for them to pay the amount of contribution to SICOMINES, and provide SICOMINES
with a loan of USD5,882,300.00 (equivalent to RMB42,504,323.34 at the exchange rate at the end
of June 2023). GECAMINES and LA SOCIETE IMMOBILIERE DU CONGO shall repay the loan
with their dividends from SICOMINES, and SICOMINES shall repay the loan without interest with
its profits.
2) LA PROVINCE DU LUALABA
In accordance with the Agreement on Pre-financing for Luena Road Rehabilitation Works signed by
the subsidiary CDM Company and LA PROVINCE DU LUALABA in September 2017 and the
Concession Grant Contract signed in March 2018, the subsidiary CDM Company shall provide LA
PROVINCE DU LUALABA with a loan of USD 4 million for road rehabilitation, and LA
PROVINCE DU LUALABA shall repay the loan with right-of-way tax. As of June 30, 2023, the
subsidiary CDM Company had paid USD2,262,929.32 (equivalent to RMB16,351,474.68 at the
exchange rate at the end of June 2023).
3) IWIP
In accordance with the Shareholder Loan Agreement signed by the subsidiary Huachuang
International and the joint venture IWIP in 2023, as a shareholder of IWIP, the subsidiary
Huachuang International shall provide it with a loan of USD27,780,000.00 (equivalent to
RMB200,732,724.00 at the exchange rate at the end of June 2023). The loan shall be a shareholder
loan provided by the Company and other shareholders to IWIP based on the shareholding ratio.
4) Veinstone
In accordance with the Supplementary Agreement signed by the subsidiary Huayou Mining Hong
Kong and Veinstone Investment Limited in 2023, as a shareholder of Veinstone, the subsidiary
Huayou Mining Hong Kong shall provide it with a loan of USD16,368,000.00 (equivalent to
RMB118,271,844.88 at the exchange rate at the end of June 2023). The loan shall be a shareholder
loan provided by the Company and other shareholders to Veinstone based on the shareholding ratio.
5) PT Prima Puncak Mulia (“PPM”)
Huayong International intends to sign the PPM Loan Agreement with PPM, agreeing that Huayong
International shall provide a total financial assistance of IDR267,001,996,830 (equivalent to RMB
133,301,115.02 at the exchange rate at the end of June 2023) to PPM at the annual interest rate of
6.76% for a period from the date of withdrawal of the first advance payment to the 7th anniversary.
If HLN goes public, the period shall start from the date of withdrawal of the first advance payment
until 6 months after the listing of HLN or 3 months after the expiration of HLN’s share lock-up
period (whichever is later).

√ Applicable □Not applicable
Increase/decrease in the current period
Profit/
loss Endin
Adju
on Cash g
stme
invest divide balan
Begin Redu nt of Other Provis Endin
Additi ment nds or ce of
ning ced other equit ion g
Investee onal recogn profits Other provis
balan inves comp y for balanc
invest ized declar s ion
ce tmen rehen chan impair e
ment under ed for for
t sive ges ment
the distrib impai
inco
equity ution rment
me
metho
d
I. Joint ventures
153 / 262
PT Alam Hijau
Environmental 5,754, 424,54 253,6 6,432,8
Services (“PT 684.53 6.12 24.28 54.93
Alam”)
Sub-total 5,754,6 424,54 253,6 6,432,8
84.53 6.12 24.28 54.93
II. Associates
NEWSTRIDE
TECHNOLOG
Y LIMITED 1,631,9 2,220,6
565,899, 22,824,
(“NEWSTRID 47,604.
657.12 224.41
71,485.
E 19 72
TECHNOLOG
Y”)
Quzhou Minfu
Woneng New
Energy
Vehicle 1,161,3
Technology 07.33
Co., Ltd.
(“Minfu
Woneng”)
AVZ
MINERALS
61,498, -1,786,9 9,261,0 68,972,
LIMITED 188.69 94.58 21.81 215.92
(“AVZ
Company”)
Zhejiang
Puhua New
Energy 444,006 109,478 22,677,0 576,162
Materials Co., ,736.43 ,309.00 12.84 ,058.27
Ltd. (“Puhua
Company”)
Leyou 1,791,3 1,926,3
377,436, 242,385,
01,622. 52,553.
Company 91
883.04 951.97
98
Ruiyou
Investment
Company 10,000,
-898.31
-313,1 9,686,0
Limited 143.45 50.87 94.27
(“Ruiyou
Company”)
Veinstone 181,090 16,221,8 1,288,9 198,601
,710.58 69.88 78.10 ,558.56
IWIP 295,819 14,282,1 10,748, 320,849
,375.50 38.49 069.30 ,583.29
PT. HUA
PIONEER
3,479,1
INDONESIA 94.09
(“Indonesian
Huatuo”)
Quzhou Anyou
Equity
Investment
594,118 -4,132,2 589,985
Partnership ,061.75 86.40 ,775.35
Enterprise
(Limited
Partnership)
154 / 262
(“Quzhou
Anyou”)
POSCO-HY
Clean Metal
217,626 -62,182, -7,860, 147,583
Co., Ltd. ,738.31 086.55 829.60 ,822.16
(“PHC
Company”)
Hunan
Yacheng New
Energy Co.,
Ltd. (formerly
known as 130,099 -11,121, 3,682,89 115,295
Hunan ,919.36 278.13 2.36 ,748.87
Yacheng New
Materials Co.,
Ltd.) (“Hunan
Yacheng”)
Guangxi Times
Lithium-ion
Battery New
Energy
Material
Investment
Management
708,754 10,000, -928,55 717,826
Center ,753.47 000.00 9.64 ,193.83
(Limited
Partnership)
(“Guangxi
Times
Lithium-ion
Battery New
Energy”)
Guangxi Times
Lithium-ion
Battery New
Materials
Industry
Development
Fund
Partnership
657,990 -1,412,0 656,578
Enterprise ,658.42 49.14 ,609.28
(Limited
Partnership)
(“Guangxi
Times
Lithium-ion
Battery New
Materials
Fund”)
Quzhou
Xinhua Equity
Investment
Partnership 1,182,8 1,174,4
-8,343,0
35,095. 92,025.
Enterprise 69.92
28 36
(Limited
Partnership)
(“Quzhou
155 / 262
Xinhua”)
Zhejiang
Diantou
Huayou Smart 1,800,0
150.39
1,800,1
Energy Co., 00.00 50.39
Ltd. (“Zhejiang
Diantou”)
Tongxiang
Lithium Times
Equity
Investment
Partnership
-19,474. 120,000 -20,696. 119,959
Enterprise 44 ,000.00 66 ,828.90
(Limited
Partnership)
(“Tongxiang
Lithium
Times”)
Ningbo Ruihua
International
60,000, -399,22 59,600,
Trade Co., Ltd 000.00 9.12 770.88
(“Ningbo
Ruihua”)
PT. IWIP
4,580,5 4,580,5
GREEN 41.90 41.90
INDUSTRY
LG-HY BCM
Co., Ltd 375,144 -7,122,7 -986,8 367,035
(“LG-HY ,767.07 71.24 85.07 ,110.76
BCM”)
Jintang B&M
Technology
90,000, 303,883. 90,303,
Co., Ltd 000.00 66 883.66
(“Jintang
B&M”)
ASKARI
11,521, 11,521,
METALS 516.09 516.09
LIMITED
Zhejiang
Haigang
Pingyou Port 73,297, 73,297,
Co., Ltd 500.00 500.00
(“Haigang
Pingyou”)
Sub-total 7,908,8 9,451,1
854,022 899,371, 34,961, 246,068, 4,640,5
70,133. 57,027.
,634.06 675.73 428.08 844.33 01.42
90 44
7,914,6 9,457,5
854,022 899,796, 35,215, 246,068, 4,640,5
Total 24,818.
,634.06 221.85 052.36 844.33
89,882.
01.42
43 37
Other remarks:
None
18. Other equity instrument investments

(1) Details of other equity instrument investments
156 / 262
Monetary unit: Yuan Currency:

RMB
Inner Mongolia Sinuo New Material 36,894,737.00 36,894,737.00
Technology Co., Ltd. (“Inner Mongolia
Sinuo”)
HANAQ Company 4,002,445.81 4,002,445.81
Shenzhen Feiniji 1,750,000.00 1,750,000.00
Total 42,647,182.81 42,647,182.81
(2) Details of equity instrument investments not held for trading

Other remarks:
Considering that the above investments are equity instrument investments not held for trading, the
company designates it as equity instrument investments measured at fair value through other
comprehensive income.
19. Other non-current financial assets

Financial assets classified to be 547,046,515.08 527,509,366.89
measured at fair value through current
profit or loss
Including: equity instrument 547,046,515.08 527,509,366.89
investments
Total 547,046,515.08 527,509,366.89
Other remarks:
Investee Decrease in
Increase in the current
Beginning amount the current Ending amount
period
period
SICOMINES 6,573,600.00 6,573,600.00
HLN [Remark] 520,935,766.89 19,537,148.19 540,472,915.08
Sub-total 527,509,3 19,537,148.19 547,046,515.08
66.89
[Remark] According to the Convertible Bond Agreement signed between its subsidiary Huayong
International and HLN in 2022, Huayong International subscribed for 10.00% of HLN’s convertible
bonds, with a total subscription amount of IDR 1.07 trillion (included in other non-current financial
assets).The increase in the current period is due to the impact of exchange rate changes generated during
the translation of financial statements dominated in foreign currency.
20. Investment real estates

Measurement method for investment real estates
N/A
21. Fixed assets

Presented by items
157 / 262
Fixed assets 29,852,266,203.93 26,217,069,544.01

Disposal of fixed assets
Total 29,852,266,203.93 26,217,069,544.01
Other remarks:
None
Fixed assets
(1) Details of fixed assets
Houses and Machinery Transportation Other
Item Total
buildings equipment equipment equipment
I. Original book value:
1.Beginning
9,418,940,636.25 20,962,025,497.43 762,523,851.21 640,063,746.26 31,783,553,731.15
balance
2. Increase in the
2,040,655,779.66 2,692,125,402.79 201,164,686.55 135,548,327.68 5,069,494,196.68
current period
(1) Purchase 3,691,542.23 193,216,260.81 186,049,628.30 55,246,292.94 438,203,724.28
(2) Transfer
from 1,729,122,820.33 2,155,669,526.60 49,868,737.56 3,934,661,084.49
construction-in-progress
(3) Increase
from the business
combination
(4) Differences
arising from translation
307,841,417.10 343,239,615.38 15,115,058.25 30,433,297.18 696,629,387.91
of foreign currency
3. Decrease in the
7,047,427.91 89,099,935.78 15,696,861.45 37,738,551.41 149,582,776.55
current period
(1) Disposal or
7,047,427.91 89,099,935.78 15,696,861.45 37,738,551.41 149,582,776.55
scrapping
(2) Differences
of foreign currency
4.Ending balance 11,452,548,988.00 23,565,050,964.44 947,991,676.31 737,873,522.53 36,703,465,151.28
II. Accumulated depreciation
1.Beginning
1,287,828,156.05 3,838,302,846.21 171,413,051.45 243,595,378.82 5,541,139,432.53
balance
2. Increase in the
316,038,059.29 923,293,852.31 48,375,300.34 75,009,904.19 1,362,717,116.13
current period
(1) Provision 211,379,817.51 896,048,693.72 42,954,565.53 72,790,905.85 1,223,173,982.61
(2) Provision for
business combination
(3) Differences 104,658,241.78 27,245,158.59 5,420,734.81 2,218,998.34 139,543,133.52
of foreign currency
3. Decrease in the
1,028,321.39 61,598,901.68 7,819,967.78 9,374,331.10 79,821,521.95
current period
(1) Disposal or
1,028,321.39 61,598,901.68 7,819,967.78 9,374,331.10 79,821,521.95
scrapping
(2) Differences
158 / 262
of foreign currency
4. Ending balance 1,602,837,893.95 4,699,997,796.84 211,968,384.01 309,230,951.91 6,824,035,026.71
III. Provision for impairment
1.Beginning
5,401,261.92 18,565,100.04 1,378,392.65 25,344,754.61
balance
2. Increase in the
720,173.90 1,086,370.12 12,622.01 1,819,166.03
current period
(1) Provision
(2) Differences
720,173.90 1,086,370.12 12,622.01 1,819,166.03
of foreign currency
3. Decrease in the
current period
(1) Disposal or
scrapping
(2) Differences
of foreign currency
4.Ending balance 6,121,435.82 19,651,470.16 1,391,014.66 27,163,920.64
IV. Book value
1. Ending book
9,843,589,658.23 18,845,401,697.44 736,023,292.30 427,251,555.96 29,852,266,203.93
value
2. Beginning book
8,125,711,218.28 17,105,157,551.18 591,110,799.76 395,089,974.79 26,217,069,544.01
value
(2) Temporarily idle fixed assets

Original book Accumulated Provision for
Item Book value Remark
value depreciation impairment
Houses and 11,104,799.55 4,983,363.73 6,121,435.82
buildings
Machinery 48,142,702.24 34,005,453.80 9,234,081.05 4,903,167.39
equipment
Other 182,661.87 75,375.50 107,286.37
equipment
Total 59,430,163.66 39,064,193.03 15,462,803.24 4,903,167.39
(3) Fixed assets acquired under financing lease

(4) Fixed assets leased out under operating lease

Item Ending book value
Houses and buildings 143,222.36
Machinery equipment
Other equipment 9,000,679.93
Total 9,143,902.29
159 / 262
(5) Fixed assets with the title certificate not obtained

Reasons for the failure to obtain
Item Book value
title certificate
Houses and buildings 1,459,508,279.81 It is still in process.
Other remarks:
Disposal of fixed assets

22. Construction in progress

Presented by items
Construction in progress 23,757,190,921.40 13,979,069,175.94
Project materials 208,376,836.29 302,860,651.42
Total 23,965,567,757.69 14,281,929,827.36
Other remarks:
None
Construction in progress
(1) Details of construction in progress
Provision Provision
Item for Book value for Book value
Book balance Book balance
impairment impairment
Construction project of
Huayou Science and
154,097,077.74 154,097,077.74 149,940,716.33 149,940,716.33
Technology Innovation
Center
Project of nickel sulfate
for high-purity ternary
electrical batteries with
375,398.08 375,398.08 47,462,104.45 47,462,104.45
an annual production of
30,000 tons
(metallometry)
Project of ternary
precursor materials for
high-nickel type electrical 5,321,074.82 5,321,074.82 186,281,892.04 186,281,892.04
batteries with an annual
Project of ternary cathode
material precursor for
high-performance
75,063,211.43 75,063,211.43 404,521,976.55 404,521,976.55
an annual output of
50,000 tons
160 / 262
Project of nickel metal

hydroxide nickel cobalt
with an annual output of
60,000 tons (including
1,742,391,576.74 1,742,391,576.74 833,723,920.19 833,723,920.19
the supporting
beneficiation and slurry
pipeline transportation
project)
Project of power
lithium-ion new energy
precursor materials with 370,215,689.55 370,215,689.55 346,877,601.80 346,877,601.80
an annual output of
30,000 tons
Huayou Headquarters 0.00 0.00 3,107,655.71 3,107,655.71
Research Institute
Project of high-purity
nickel sulfate with an
534,401,471.78 534,401,471.78 441,785,175.04 441,785,175.04
annual output of 100,000
tons (metallometry)
Project of ternary cathode
an annual output of
3,697,429,191.24 3,697,429,191.24 2,441,012,072.20 2,441,012,072.20
50,000 tons and project
of ternary precursor
materials with an annual
Project of new-generation
high-specific capacity 3C
cathode materials with an 458,306,052.11 458,306,052.11 494,291,226.52 494,291,226.52
annual output of 50,000
tons
Project of nickel metal
hydroxide nickel cobalt
12,011,976,614.55 12,011,976,614.55 6,971,754,708.66 6,971,754,708.66
with an annual output of
120,000 tons
Project of Arcadia
lithium mining and
dressing plant in
232,925,434.68 232,925,434.68 675,020,301.35 675,020,301.35
Zimbabwe with an annual
processing capacity of 4.5
million tons
Project of ternary
precursor for new
high-performance
445,062,577.90 445,062,577.90 0.00
an annual output of
50,000 tons
7000ta (cobalt metal
content) high-voltage
cobalt tetroxide green
intelligent manufacturing 168,209,599.85 168,209,599.85 0.00
project – ammonium
sulfate evaporation
crystallization sub-project
Quzhou Science and
307,905,890.60 307,905,890.60 0.00
Technology Innovation
Center (Phase II)
LCE battery grade
lithium salt project with
1,305,677,046.75 1,305,677,046.75 0.00
an annual output of
50000 tons
Other sporadic projects 2,247,833,013.58 2,247,833,013.58 983,289,825.10 983,289,825.10
Total 23,757,190,921.40 23,757,190,921.40 13,979,069,175.94 13,979,069,175.94
161 / 262
(2) Changes of major construction-in-progress in the current period

Proportion Including:
Amount Other of the
Accumulated
transferred amount accumulat amount of Interest
Increase in amount of
Beginning into fixed decrease Ending ed Project capitalizat capitalization Sources
Project name Budget the current interest
balance assets in in the balance engineerin progress ion of rate in the of funds
period capitalizatio
the current current g interest in current period
n
period period investment the current
in budget period
Construction Loans
project of from
Huayou Science RMB financial
149,940,71 4,156,361.4 154,097, 12,956,807.2
and Technology 401,52 127.87 98.50 institutio
6.33 1 077.74 2
Innovation 0,000 ns and
Center other
sources
Project of Raised
nickel sulfate funds
for high-purity and
ternary other
RMB
electrical 47,462,104 1,641,109.1 48,727,8 375,398. sources
800,86 115.78 99.00
batteries with .45 3 15.50 08
0,000
an annual
production of
30,000 tons
(metallometry)
Project of Raised
ternary funds
precursor and
materials for RMB other
high-nickel 1,353, 186,281,89 sources
202,034,02 382,994, 5,321,07 106.54 98.00
type electrical 066,10 2.04
0.24 837.46 4.82
batteries with 0
an annual
output of
50,000 tons
Project of Raised
ternary funds
cathode and
material other
RMB
precursor for sources
1,244, 404,521,97 22,076,050.5 7,557,200.
high-performa 142,262,06 471,720, 75,063,2 73.86 82.00 5.31
790,00 6.55 9 62
nce electrical 3.39 828.51 11.43
0
batteries with
an annual
output of
50,000 tons
Project of Loans
nickel metal from
hydroxide financial
nickel cobalt institutio
with an annual ns and
output of RMB other
60,000 tons 10,143 833,723,92 1,011,079,1 102,411, 1,742,39 237,907,280. 42,383,24 sources
83.80 97.00 4.19
(including the ,877,2 0.19 99.70 543.15 1,576.74 40 3.77
supporting 00
beneficiation
and slurry
pipeline
transportation
project)
162 / 262
Project of Loans
power from
lithium-ion financial
new energy RMB institutio
precursor 982,26 346,877,60 74,314,220. 50,976,1 370,215, 119.36 95.00 3,402,866.12 ns and
materials with 0,000 1.80 67 32.92 689.55 other
an annual sources
output of
30,000 tons
Construction Raised
project of funds
RMB
Huayou 3,107,655. 58,562,823. and
350,00 61,670,4 178.55 100.00
Headquarters 71 32 other
0,000 79.03
Research sources
Institute
Project of Loans
high-purity from
RMB
nickel sulfate financial
2,717, 441,785,17 474,330,26 3,434,454.
with an annual 381,713, 534,401, 33.72 43.63 5,214,961.34 3.85 institutio
062,00 5.04 9.13 47
output of 972.39 471.78 ns and
0
100,000 tons other
(metallometry) sources
Project of Raised
ternary funds,
cathode loans
materials for from
high-nickel financial
electrical institutio
batteries with RMB ns and
an annual 5,617. other
2,441,012, 1,256,417,1 200,240,046. 79,218,73
output of 77 3,697,42 65.82 73.00 5.67 sources
072.20 19.04 73 3.52
50,000 tons millio 9,191.24
and project of n
ternary
precursor
materials with
an annual
output of
100,000 tons
Project of Loans
new-generatio from
n high-specific RMB financial
capacity 3C 2,832. institutio
494,291,22 125,780,88 13,839,847.2 8,964,302.
cathode 92 161,766, 458,306, 24.24 25.00 4.30 ns and
6.52 6.70 1 60
materials with millio 061.11 052.11 other
an annual n sources
output of
50,000 tons
Project of Loans
nickel metal from
RMB
hydroxide financial
13,808 6,971,754, 5,040,221,9 12,011,9 443,664,640. 175,865,2
nickel cobalt 89.22 90.00 5.00 institutio
,524,4 708.66 05.89 76,614.5 60 47.81
with an annual ns and
00 5
output of other
120,000 tons sources
Project of Loans
Arcadia from
lithium mining financial
and dressing RMB institutio
plant in 1,725, 675,020,30 859,037,25 1,301,13 ns and
232,925, 90.62 87.00
Zimbabwe 703,90 1.35 8.23 2,124.90 other
434.68
with an annual 0 sources
processing
capacity of 4.5
million tons
163 / 262
RMB /
19,282,5
41,978 12,995,779 9,249,837,2 2,963,113, 939,302,500. 317,423,1
Total 02,792.7 / / /
,353,6 ,350.84 36.85 794.97 21 82.79
2
00
(3) Provision for impairment of construction in progress in the current period

Other remarks:
Project materials
Provisi Provisi
Item on for on for
impair impair
ment ment
Project 208,376,836.29 208,376,836.29 302,860,651.42 302,860,651.42
materials
Total 208,376,836.29 208,376,836.29 302,860,651.42 302,860,651.42
Other remarks:
None
23. Productive biological assets

(1) Productive biological assets measured at cost
(2) Productive biological assets measured at fair value

Other remarks:
24. Oil and natural gas assets

Other remarks:
25. Right of use assets

Transportation
Item Houses and buildings Total
equipment
I. Original book value
1.Beginning balance 167,133,798.49 18,265,807.02 185,399,605.51
2. Increase in the
36,059,803.57 36,059,803.57
current period
1) Rented in 35,759,201.18 35,759,201.18
2) Translation 300,602.39 300,602.39
difference of foreign
currency statements
164 / 262
3. Decrease in the
current period
4. Ending balance 203,193,602.06 18,265,807.02 221,459,409.08
II. Accumulated depreciation
1.Beginning balance 54,061,666.78 9,132,903.51 63,194,570.29
2. Increase in the
30,622,003.17 2,790,609.43 33,412,612.60
current period
(1) Provision made 30,601,963.01 2,790,609.43 33,392,572.44
2) Translation
difference of foreign 20,040.16 20,040.16
currency statements
3. Decrease in the
current period
(1) Disposal
4. Ending balance 84,683,669.95 11,923,512.94 96,607,182.89
1. Beginning balance
2. Increase in the
current period
(1)Provision made
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 118,509,932.11 6,342,294.08 124,852,226.19
2. Beginning book
113,072,131.71 9,132,903.51 122,205,035.22
value
Other remarks:
None
26. Intangible assets

(1) Details of intangible assets
Non
-pat
ente
Item Land use rights Patent right d Software Mining right Dumping right
tech
nolo
gy
I. Original book value
1.Beginning
854,387,250.78 267,375,199.35 68,971,832.14 3,350,260,067.97 24,771,342.82 4,
balance
2. Increase in
41,730,213.46 - 4,888,172.30 11,215,034.96 3,012,110.00
the current period
(1) Purchase 32,392,052.50 - 4,338,410.02 3,012,110.00
(2) Internal
R&D
(3) Increase
due to business
combination
165 / 262
(4)
Differences arising
from translation of 9,338,160.96
549,762.28
11,215,034.96
foreign currency
3. Decrease in
1,492,262.51
the current period
(1)Disposal
(2) Others
1,492,262.51
(3) Decrease
due to business
combination
(4)
Differences arising
from translation of
foreign currency
4.Ending balance 896,117,464.24 267,375,199.35 72,367,741.93 3,361,475,102.93 27,783,452.82 4,
II. Accumulated amortization
1.Beginning
90,343,893.29 43,219,328.37 21,781,336.19 329,647,443.87 13,972,425.54 4
balance
2. Increase in
13,583,701.19 439,326.87 3,548,482.91 58,164,120.85 1,967,146.45
the current period
(1) Provision
10,000,035.19 439,326.87 3,502,968.16 43,991,058.28 1,967,146.45
made
(2) Others
(3)
Translation of
3,583,666.00 45,514.75 14,173,062.57
foreign currency
3. Decrease in
1,292,607.51
the current period
(1)Disposal
(2) Others
1,292,607.51
(3) Decrease
due to business
combination
(4)
Differences arising
from translation of
foreign currency
4. Ending
103,927,594.48 43,658,655.24 24,037,211.59 387,811,564.72 15,939,571.99 5
balance
1.Beginning
balance
2. Increase in
the current period
(1)Provision
made
3. Decrease in
the current period
(1)Disposal
4.Ending
166 / 262
balance
IV. Book value
1. Ending book
792,189,869.76 223,716,544.11 48,330,530.34 2,973,663,538.21 11,843,880.83 4,
value
2. Beginning
764,043,357.49 224,155,870.98 47,190,495.95 3,020,612,624.10 10,798,917.28 4,
book value
The intangible assets of the Company generated via internal R&D account for 0.00% of the intangible
assets balance as at the end of the current period.
(2) Land use rights with the title certificate not obtained
Reasons for the failure to obtain
Item Book value
title certificate
Land use right 134,890,711.69 It is still in process.
Total 134,890,711.69
Other remarks:
27. R&D expenses

28. Goodwill
(1) Original book value of goodwill
Increase in the current Decrease in the current
period period
Name of investee or Formed
Beginning Ending
matters forming due to
balance balance
goodwill business Disposal
combinatio
n
Huahai New Energy 95,136,198. 95,136,198
86 .86
Tianjin B&M 366,245,45 366,245,45
6.38 6.38
461,381,65 461,381,65
Total
5.24 5.24
(2) Provision for impairment of goodwill

Increase in the current Decrease in the
Name of investee
Beginning period current period Ending
or matters
balance Provision balance
forming goodwill Disposal
made
Tianjin B&M 2,965,735.57 1,032,217.39 3,997,952.96
Total 2,965,735.57 1,032,217.39 3,997,952.96
The goodwill of B&M Technology is divided into two parts: one is the core goodwill of RMB
336,004,594.11, and the other is the goodwill formed due to the recognition of deferred income tax
liabilities, which is RMB 30,240,862.27.For goodwill formed due to the recognition of deferred income
167 / 262
tax liabilities, impairment losses on the corresponding shareholding ratio are accrued as the deferred
income tax liabilities are reversed.
(3) Relevant information of asset group or combination of asset groups related to the goodwill
(4) Explain the goodwill impairment test process and key parameters (such as forecast period
growth rate, steady period growth rate, profit rate, discount rate, forecast period, etc. when
estimating the present value of future cash flows, if applicable), as well as the confirmation
method of goodwill impairment loss
1) Asset group or asset group portfolio of Huahai New Energy
a) Information of the asset group or asset group portfolio containing goodwill
Asset group of
Composition of the asset group or asset group portfolio
Huahai New Energy
Book value of the asset group or asset group portfolio 2,318,948,432.72
Book value and apportionment method of the goodwill apportioned to the asset
95,136,198.86
group or asset group portfolio
Book value of the asset group or asset group portfolio containing goodwill 2,414,084,631.58
Is the asset group or asset group portfolio consistent with that determined
Yes
during the goodwill impairment test on the purchase date and previous years
b) The process, methods, and conclusions of goodwill impairment test

The recoverable amount of goodwill is calculated based on the present value of the expected future
cash flow, which is based on the 5-year cash flow forecast approved by the Company. The discount rate
used in the cash flow forecast is 13.26% (before tax), and the cash flow after the forecast period remains
unchanged.
Other key data used in the impairment test include expected selling price, sales volume, production
costs, and other related expenses of products. The Company determines the above key data based on
historical experience and market development predictions. The discount rate adopted by the Company is
a pre-tax interest rate that reflects the time value of current market currency and specific risks of related
asset group.
The above estimate of the recoverable amount indicates that there has been no impairment loss on
goodwill.
2) Asset group or asset group portfolio of B&M Technology
a) Information of the asset group or asset group portfolio containing goodwill
Composition of the asset group or asset group portfolio Asset group of Tianjin B&M
Book value of the asset group or asset group portfolio 4,064,611,843.12
Book value and apportionment method of the goodwill apportioned to
870,084,521.17
the asset group or asset group portfolio
Book value of the asset group or asset group portfolio containing
4,934,696,364.29
goodwill
Is the asset group or asset group portfolio consistent with that
determined during the goodwill impairment test on the purchase date Yes
and previous years
b) The process, methods, and conclusions of goodwill impairment test

The recoverable amount of goodwill is calculated based on the present value of the expected future
cash flow, which is based on the 5-year cash flow forecast approved by the Company. The discount rate
used in the cash flow forecast is 14.26% (before tax), and the cash flow after the forecast period remains
unchanged.
Other key data used in the impairment test include expected selling price, sales volume, production
costs, and other related expenses of products. The Company determines the above key data based on
historical experience and market development predictions. The discount rate adopted by the Company is
168 / 262
a pre-tax interest rate that reflects the time value of current market currency and specific risks of related
asset group.
The above estimate of the recoverable amount indicates that there has been no impairment loss on
goodwill.
(5) Impact of goodwill impairment test

Other remarks:
29. Long-term deferred expenses

Amortization
Beginning Increase in the Other
Item in the current Ending balance
balance current period decreases
period
Expenditure
for
15,028,111.58 20,167,175.18 27,505,707.48 7,689,579.28
improvement
of fixed assets
Insurance
1,213,262.21 1,608,112.27 2,614,954.68 206,419.80
premium
Aircraft usage
63,070,131.16 4,204,675.41 58,865,455.75
fee
Others 13,519,015.68 5,679,745.93 7,839,269.75
Total 79,311,504.95 35,294,303.13 40,005,083.50 74,600,724.58
Other remarks:
None
30. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets before offset
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
differences differences
Provision for asset
613,629,382.86 98,335,853.30 937,156,608.98 183,840,564.82
impairment
Unrealized profits of
internal transactions
Deductible loss
Uncovered losses 2,252,975,555.35 463,372,327.15 883,309,333.15 162,234,731.96
Deferred income 568,320,589.80 129,119,712.28 519,759,486.05 121,485,237.69
Unrealized profits 1,271,790,986.99 169,012,941.71 1,701,052,808.50 330,094,177.10
included in inventories
Gain or loss from change 497,307.85 74,596.18 33,679,150.31 4,690,307.75
in fair value
Share-based payment fees 188,939,313.96 28,340,897.09 188,939,313.96 28,340,897.09
Total 4,896,153,136.81 888,256,327.71 4,263,896,700.95 830,685,916.41
169 / 262
(2) Deferred income tax liabilities before offset

Item Taxable Taxable
Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Asset valuation
appreciation arising from
business combination not
under common control
Changes in fair value of
other debt investments
Changes in fair value of
other equity instrument
investments
Temporary differences 394,784,663.00 50,837,423.62 425,474,971.83 55,518,755.37
included in long-term
assets
Depreciation of fixed 1,857,686,183.74 377,165,517.22 1,554,086,764.88 304,365,803.90
assets
Gain or loss from change 68,563,916.77 11,178,093.99
in fair value
Total 2,321,034,763.51 439,181,034.83 1,979,561,736.71 359,884,559.27
(3) Deferred income tax assets/liabilities presented by net amount after offset
(4) Details of unrecognized deferred income tax assets

Deductible temporary
difference
Deductable loss 123,581,820.45 62,898,710.44
Temporary differences 461,531,840.09 799,977,741.08
included in long-term assets
Provision for assets impairment 144,958,768.28 199,895,832.46
Total 730,072,428.82 1,062,772,283.98
(5) Deductible loss of unrecognized deferred income tax assets to be due in the following years
Year Ending amount Beginning amount Remark
Year 2023 8,388,096.09
Year 2024 12,160,398.17 12,160,398.17
Year 2025 2,601,860.96 2,637,727.78
Year 2026 11,304,941.45 12,098,889.37
Year 2027 27,613,599.03 27,613,599.03
Year 2028 69,901,020.84
Total 123,581,820.45 62,898,710.44 /
170 / 262
Other remarks:
31. Other non-current assets

Provision Provision
Item for Book for
Book balance Book value Book value
impairmen balance impairmen
t t
Contract
acquisition
cost
Contract
performance
cost
Cost of
returned
goods
Contract
assets
Advance
payment for
3,265,208,952. 3,265,208,9 4,933,960,0 4,933,960,0
land and
66 52.66 87.63 87.63
engineering
equipment
Prepaid
equity 1,047,740,621. 1,047,740,6 1,061,032,7 1,061,032,7
investment 85 21.85 01.24 01.24
funds
4,312,949,574. 4,312,949,5 5,994,992,7 5,994,992,7
Total
51 74.51 88.87 88.87
Other remarks:
They are mainly: (1) the advance payment of USD100 million for the acquisition of the equity of
Chongjing Holding Limited by the subsidiary Huayou Mining Hong Kong; (2) the advance payment of
USD 25 million for the acquisition of equity of DATHOMIR INTERNATIONAL CORP. by the
subsidiary Huayou Mining Hong Kong; (3) the advance payment of USD 20 million for the acquisition
of equity of PT WANA KENCANA MINERAL by the subsidiary Huacai Hong Kong. The
aforementioned equity transfer transaction has not yet been closed, so they are temporarily included in
other non-current assets.
32. Short-term borrowings

(1) Classification of short-term borrowings
Pledged borrowing 4,175,600,000.00 4,128,113,282.24
Mortgaged borrowing
Guaranteed borrowing 7,875,906,425.84 6,159,903,975.17
Credit borrowing 2,381,762,199.16 1,659,470,318.56
Guaranteed and mortgaged
50,000,000.00 50,000,000.00
borrowings
171 / 262

400,000,000.00
borrowings
Interests on short-term
28,549,867.19 22,335,127.70
borrowings
Total 14,911,818,492.19 12,019,822,703.67
Remarks to the classification of short-term borrowings:
None
(2) Overdue and outstanding short-term borrowings

Other remarks:
33. Held-for-trading financial liabilities

Beginning Increases in the Decrease in the Ending
Item
balance current period current period balance
40,024,798.40 42,816,010.51 82,840,808.91
liabilities
Including:
Derivative financial 82,840,808.91
40,024,798.40 42,816,010.51
liabilities
Financial liabilities designated
to be measured at fair value
through current profit or loss
Including:
Total 40,024,798.40 42,816,010.51 82,840,808.91
Other remarks:
None
34. Derivative financial liabilities

35. Notes payable

Type Ending balance Beginning balance
Commercial acceptance
1,153,256,740.71 1,471,187,597.59
bill
Bank acceptance bill 9,072,937,072.39 9,311,043,710.95
Total 10,226,193,813.10 10,782,231,308.54
The total amount of notes payable that are due but unpaid at the end of current period is RMB 0.00.
36. Accounts payable

(1) Details of accounts payable
Payment for goods 10,563,369,509.54 11,189,429,163.91
Payment for equipment and 3,373,461,269.89
5,163,154,272.02
projects
172 / 262
Others 28,687,316.74 48,000,767.50

Total 10,563,369,509.54 14,610,891,201.30
(2) Major account payable with aging over 1 year

Other remarks:
37. Advance from customers

(1) Details of advance from customers
Advance receipt for equipment
Advance receipt for equity 492,095,800.00
Others 21,870.03
Total 0.00 492,117,670.03
(2) Major advance from customers with aging over 1 year

Other remarks:
38. Contract liabilities

(1) Details of contract liabilities
Payment for goods 2,241,111,527.44 2,359,463,860.52
Total 2,241,111,527.44 2,359,463,860.52
(2) Amount of and reason for major changes in the book value during the Reporting Period
Other remarks:
39. Employee compensations payable

(1) Details of employee compensations payable
Increase Decrease
Beginning
Item in the current in the current Ending balance
balance
period period
I. Short-term employee
675,907,216.87 2,292,130,278.72 2,374,174,752.46 593,862,743.13
compensations
II. Post-employment
benefits - defined 9,833,426.08 78,193,202.62 77,494,498.58 10,532,130.12
contribution plan
III. Dismissal welfare
IV. Other welfare maturing
within one year
173 / 262
Total 685,740,642.95 2,370,323,481.34 2,451,669,251.04 604,394,873.25
(2) Details of short-term employee compensations

Increase Decrease
Beginning
Item in the current in the current Ending balance
balance
period period
I. Salary, bonus, allowance
663,935,432.91 2,085,816,407.32 2,167,405,423.14 582,346,417.09
and subsidy
II. Employee welfare
103,081,150.94 103,081,150.94
expenses
III. Social insurance
6,209,676.09 57,756,621.98 58,289,952.51 5,676,345.56
premiums
Including: medical
5,634,649.63 52,813,449.54 53,362,724.52 5,085,374.65
insurance
Work-related injury
480,202.42 4,783,044.90 4,767,508.35 495,738.97
insurance
Maternity insurance
94,824.04 160,127.54 159,719.64 95,231.94
fee
IV. Housing provident
4,821,932.75 38,247,490.81 39,023,353.00 4,046,070.56
funds
V. Labor union
expenditures and employee 940,175.12 7,228,607.67 6,374,872.87 1,793,909.92
education expenses
VI. Short-term paid absence
VII. Short-term
profit-sharing plan
Total 675,907,216.87 2,292,130,278.72 2,374,174,752.46 593,862,743.13
(3) Details of defined contribution plans

Beginning Increase in the Decrease in the
Item Ending balance
balance current period current period
1. Basic endowment
9,524,255.81 75,194,534.72 74,869,476.56 9,849,313.97
insurance
2. Unemployment insurance 309,170.27 2,998,667.90 2,625,022.02 682,816.15
3. Enterprise annuity
payment
Total 9,833,426.08 78,193,202.62 77,494,498.58 10,532,130.12
Other remarks:
40. Taxes payable

VAT 136,972,730.51 90,551,767.13
Consumption tax
Business tax
174 / 262
Enterprise income tax 236,569,675.12 264,952,268.88

Individual income tax 8,665,300.53 10,082,737.56
1,897,735.07 805,813.17
construction tax
Property tax 14,937,162.27 7,024,583.39
Land use tax 7,375,116.49 1,909,353.15
Educational surcharges 813,315.03 345,728.74
Local educational surcharges 542,210.03 230,485.80
Mining tax 94,440,315.64 125,291,332.19
Other taxes and fees 30,306,471.19 41,212,419.42
Total 532,520,031.88 542,406,489.43
Other remarks:
None
41. Other payables

Presented by items
Interests payable
Dividends payable
Other payables 4,411,853,636.24 4,612,710,195.77
Total 4,411,853,636.24 4,612,710,195.77
Other remarks:
None
Interests payable
Dividends payable
Other payables
(1) Other payables presented by nature of funds
Cash pledge and security
50,474,607.24 54,620,266.65
deposit
Financing funds under the
2,470,061,153.94 1,315,602,669.87
after-sale leaseback agreement
Others 34,180,421.72 16,031,748.12
Borrowing and interests 1,239,570,116.04 2,595,440,936.93
Restricted shares incentive
617,567,337.30 631,014,574.20
holders
Total 4,411,853,636.24 4,612,710,195.77
(2) Major other payables with aging over 1 year

Other remarks:
175 / 262
The ending amount of borrowing and interests mainly include a) borrowing funds of RMB
451,020,293.88 from GLAUCOUS INTERNATIONAL PTE. LTD; b) borrowing funds of RMB
130,888,760.36 from Qingshan Holdings Group Co., Ltd; c) borrowing funds of RMB 645,787,112.36
from NEWSTRIDE TECHNOLOGY; d) borrowing funds of RMB 11,543,215.50 from Ruby Mining
Hongkong Limited.
42. Held-for-sale liabilities

43. Non-current liabilities maturing within one year

Long-term borrowings
5,315,032,689.21 3,985,827,625.43
maturing within one year
Bonds payable maturing within
one year
Long-term payables maturing
within one year
Lease liabilities maturing
48,528,763.47 50,080,626.56
within one year
Payment for after-sale 1,963,060,846.50 1,722,020,059.88
leaseback maturing within one
year
Total 7,326,622,299.18 5,757,928,311.87
Other remarks:
None
44. Other current liabilities

√ Applicable □Not applicable
Short-term bonds payable 1,426,394,022.07 1,311,482,728.68
Payable refunds
Output tax to be carried 265,910,867.55 235,500,632.27
forward
Total 1,692,304,889.62 1,546,983,360.95
Increase/decrease of short-term bonds payable:

Amount Interest
Amortization Amount repaid
Nominal Maturity Beginning issued in the accrued Ending
Bond Issuance date Issuance amount of premiums off in the current
value period balance current by face balance
or discounts period
period value
22 Huayou Cobalt 100 2022.8.16 267 days 600,000,000.00 608,047,5 8,278,08 -660,000.00 616,985,589.04 0.00
SCP001 (Science 00.00 9.04
and Technology
Innovation Notes)
22 Huayou Cobalt 100 2022.10.27 270 days 700,000,000.00 703,435,2 13,761,0 -1,077,765.61 718,274,0
SCP002 (Science 28.68 27.78 22.07
and Technology
Innovation Notes)
176 / 262
23 Huayou Cobalt 100 2023.3.20 268 days 700,000,000.00 700,000,000 9,100,00 980,000.00 708,120,0
SCP001 (Science .00 0.00 00.00
and Technology
Innovation Notes)
/ / / 2,000,000,000.0 1,311,482, 700,000,000 31,139,1 1,426,394,
Total -757,765.61 616,985,589.04
0 728.68 .00 16.82 022.07
Other remarks:
45. Long-term borrowings

(1) Classification of long-term borrowings
Pledged borrowing
Mortgaged borrowing
Guaranteed borrowing 6,340,446,797.74 2,500,159,093.33
Credit borrowing 125,000,000.00
Guaranteed, mortgaged and
5,491,608,000.00 5,293,096,000.00
pledged borrowings
1,014,575,698.62 1,177,650,298.29
borrowings
Guaranteed and pledged
966,959,592.00 2,788,820,678.14
borrowings
Interest on long-term borrowings 71,673,404.24 43,055,662.03
Total 13,885,263,492.60 11,927,781,731.79
Remarks to the classification of long-term borrowings:
None
Other remarks (including remarks to the interest rate range):

46. Bonds payable

(1) Bonds payable
Convertible corporate bonds - 6,467,040,778.52 6,323,799,832.42
Huayou Convertible Bonds
Total 6,467,040,778.52 6,323,799,832.42
(2) Bonds payable

Amount Amount
Interest
issued Amortization repaid
Nominal Issuance Maturity Issuance Beginning accrued Ending
Bond in the of premiums off in the
value date period amount balance by face balance
current or discounts current
value
period period
177 / 262
Huay 100 2022.2.24 6 years 7,600,00 6,323,799,8 12,782,60 -145,731,525. 15,273,1 6,467,040,
ou 0,000 32.42 4.87 40 84.17 778.52
Conv
ertibl
e
Bond
s
Total / / / 7,600,00 6,323,799,8 12,782,60 -145,731,525. 15,273,1 6,467,040,
0,000 32.42 4.87 40 84.17 778.52
(3) Conditions and time for conversion of shares into corporate bonds
(4) Remark to other financial instruments classified as financial liabilities

Basic information of the preference shares, perpetual bonds and other financial instruments issued and
outstanding as at the end of the period:
Table of changes in preference shares, perpetual bonds and other financial instruments issued and
outstanding as at the end of the period
Basis for classifying other financial instruments into financial liabilities

Other remarks:
Basic information of convertible bonds
1) With the approval of CSRC in the Reply on Approval of Public Issuance of Convertible Bonds by
Zhejiang Huayou Cobalt Co., Ltd. (Zheng Jian Xu Ke [2022] No. 209), the Company publicly issued 76
million convertible bonds on February 24, 2022, each with a par value of RMB 100, issued at par value,
with a total issue value of RMB 7.6 billion and a term of 6 years.
In accordance with the relevant provisions of the Accounting Standards for Business Enterprises No. 37
- Presentation of Financial Instruments, for non-derivative financial instruments that contain both
financial liabilities and equity instruments of convertible bonds issued by enterprises, the financial
liabilities and equity instruments should be measured separately at the initial recognition. Therefore, the
fair value of the financial liabilities corresponding to the convertible bonds issued by the Company after
deducting the apportioned issuance expenses shall be RMB 6,063,498,791.20, which shall be included in
the bonds payable; the fair value of the equity instruments after deducting the apportioned issuance
expenses shall be RMB 1,490,340,831.42, which shall be included in other equity instruments.
2) Conversion of convertible bonds into shares
As of June 30, 2023, a total of 20 convertible bonds of Huayou have been converted into A shares of the
Company at a conversion price of RMB 84/share, 310 convertible bonds of Huayou converted into A
shares of the Company at a conversion price of RMB 84.19/share, 330 convertible bonds of Huayou
converted into A shares of the Company at a conversion price of RMB 84.2/share, 9,280 convertible
bonds of Huayou converted into A shares of the Company at a conversion price of RMB 84.24/share,
2,350 convertible bonds of Huayou converted into A shares of the Company at a conversion price of
RMB 84.25/share, and 170 convertible bonds of Huayou converted into A shares of the Company at a
conversion price of RMB 84.26/share, with a total of 14,685 converted shares (par value of RMB 1 per
share). Therefore, after deducting the new share capital of RMB 14,685.00 from the balance of bonds
payable corresponding to the bonds of RMB 1,021,690.92, the interest payable of RMB 1,356.32 and
other equity instruments of RMB 244,337.44, the Company shall include the difference of RMB
1,252,699.68 in the capital reserve (share premium).
178 / 262
47. Lease liabilities

Unpaid lease payments 75,715,562.66 60,294,665.46
Less: unrecognized financing 4,007,597.44 3,224,063.65
expenses
Total 71,707,965.22 57,070,601.81
Other remarks:
None
48. Long-term payables

Presented by items
Long-term payables 5,723,208,619.59 5,155,378,248.88
Special payables
Total 5,723,208,619.59 5,155,378,248.88
Other remarks:
None
Long-term payables
Financing funds under the 2,503,237,492.47
2,914,726,692.01
after-sale leaseback agreement
Long-term borrowings and 2,652,140,756.41
2,808,481,927.58
interests
Total 5,723,208,619.59 5,155,378,248.88
Other remarks:
None
Special payables
49. Long-term employee compensations payable

50. Estimated liabilities

Item Beginning balance Ending balance Cause of formation
External guarantee
Pending litigation
Product quality
assurance
Restructuring
obligations
Onerous contract to be
performed
179 / 262
Payable refunds
Others
Environmental
restoration costs
accrued in respect of
the subsidiaries
MIKAS Company,
CDM Company, and
Environmental
42,977,538.13 59,113,770.57 Prospect Lithium
restoration costs
according to the
Mining Law of the
Democratic Republic
of Congo and local
regulations of
Zimbabwe.
Total 42,977,538.13 59,113,770.57 /
Other remarks (including remarks on major assumptions and estimations with respect to the major
estimated liabilities):
None
51. Deferred income

Details of deferred income
Decrease in
Beginning Increase in the Cause of
Item the current Ending balance
balance current period formation
period
Free subsidies
Government
592,727,660.93 121,017,805.94 32,492,629.30 681,252,837.57 provided by the
subsidies
government
Total 592,727,660.93 121,017,805.94 32,492,629.30 681,252,837.57 /
Items involving government subsidies:

Amount
Amount of Amount
included in Related
new included in
Liabilities Beginning other Other Ending to
subsidies in non-operating
item balance incomes in change balance assets /
the current income in the
the current income
period current period
period
Subsidy for the
projects of
Related
informatization 745,334.48 31,566.02 713,768.46
to assets
and
industrialization
Funding and
supporting
subsidies for
Related
provincial-level 7,999,999.65 500,000.04 7,499,999.61
to assets
key enterprises
and research
institutes
180 / 262
Financial
subsidies for
Related
industrial 58,193,026.68 38,280,000.00 1,999,060.57 94,473,966.11
to assets
transformation
and upgrading
Enterprise Related
24,182,520.68 1,261,045.56 22,921,475.12
support funds to assets
Financial
subsidies for Related
69,522,151.82 48,200,000.00 3,039,991.64 114,682,160.18
technological to assets
innovation
Financial
27,814,393.77 847,712.70 26,966,681.07
transformation
Subsidy for
Related
infrastructure 252,165,072.51 4,825,800.00 6,306,993.91 250,683,878.60
to assets
construction
Special
subsidies for
energy
Related
conservation 15,423,651.47 344,565.60 15,079,085.87
to assets
and industrial
circular
economy
Subsidies for
life cycle green Related
23,812,310.66 601,045.80 23,211,264.86
manufacturing to assets
projects
Subsidies for
the project of
wastewater
treatment
optimization Related
10,665,475.92 311,508.48 10,353,967.44
and to assets
comprehensive
utilization of
renewable
resources
Central special
fund for air
Related
pollution 1,320,000.00 90,000.00 1,230,000.00
to assets
prevention and
control
Project of
industrial chain Related
13,500,000.00 1,500,000.00 517,729.02 14,482,270.98
collaborative to assets
innovation
Subsidies for
industrial
internet Related
8,703,515.85 4,495,000.00 435,043.30 12,763,472.55
innovation and to assets
development
projects
Enterprise Related
development 3,604,800.00 2,403,200.00 6,008,000.00 to
support funds income
Subsidy for
collaborative
innovation
Related
projects in 13,333,333.34 500,000.00 12,833,333.34
to assets
high-quality
development
industries
181 / 262
Subsidies for
industrial
Related
productive 7,816,657.49 500,000.04 7,316,657.45
to assets
investment
projects
Subsidies for
innovation Related
15,448,575.34 2,000,000.00 3,457,710.00 13,990,865.34
driven funding to assets
projects
Subsidies for
Related
fixed assets 6,329,442.17 191,991.34 6,137,450.83
to assets
investment
Special
28,605,489.09 5,000,000.00 2,241,128.71 31,364,360.38
transformation
Other sporadic Related
1,678,939.54 11,500,000.00 315,155.40 12,863,784.14
subsidies to assets
Related
Other sporadic
1,862,970.47 2,813,805.94 2,992,381.17 1,684,395.24 to
subsidies
income
Total: 592,727,660.93 121,017,805.94 32,492,629.30 681,252,837.57
Other remarks:
52. Other non-current liabilities

53. Share capital

Increase or decrease (+, -)
Shares
Beginning Shares converted
Shares Ending balance
balance newly from Others Sub-total
granted
issued capital
reserve
Total
number
1,599,678,228.00 1,026.00 -214,113.00 -213,087.00 1,599,465,141.00
of
shares
Other remarks:
The total amount of share capital in this period decreased by RMB 213,087.00. Please refer to “55.
Capital reserve”, “VII. Notes to the Items in the Consolidated Financial Statements”, “Section X
Financial Report” of this report for details.
54. Other equity instrument

(1) Basic information of the preference shares, perpetual bonds and other financial instruments
issued and outstanding as at the end of the period:
Please refer to “46. Bonds payable”, “VII. Notes to the Items in the Consolidated Financial Statements”,
“Section X Financial Report” of this report for details.
182 / 262
(2) Table of changes in preference shares, perpetual bonds and other financial instruments issued
and outstanding as at the end of the period
Decrease in
Financial Increases in the
Beginning balance the current Ending balance
Instruments current period
period
issued and
Quantit Book Book Quant Book Book
outstanding Quantity Quantity
y value value ity value value
Huayou
75,988, 1,490,11 900.0 17,64 75,987,4 1,490,095,
Convertible
380.00 2,966.16 0 8.76 80.00 317.40
Bonds
Total 75,988, 1,490,11 900.0 17,64 75,987,4 1,490,095,
380.00 2,966.16 0 8.76 80.00 317.40
Changes in other equity instruments during the current period and the reasons therefor, as well as the
basis for the accounting treatment:
Please refer to “46. Bonds payable”, “VII. Notes to the Items in the Consolidated Financial Statements”,
“Section X Financial Report” of this report for details.
Other remarks:
55. Capital reserves

Increases in the Decrease in the
Item Beginning balance Ending balance
current period current period
Capital premium
(share capital 9,611,903,190.91 6,032,968.93 6,841,883.70 9,611,094,276.14
premium)
Other capital
786,602,173.68 236,838,411.21 2,265,774.00 1,021,174,810.89
reserves
Total 10,398,505,364.59 242,871,380.14 9,107,657.70 10,632,269,087.03
Other remarks (including remarks to the increase/decrease in the current period and the reason therefor):
(1) Increase/decrease of share capital premium
The capital reserve (share capital premium) increases by RMB 6,032,968.93 in the current period,
including the following:
1) Upon authorization by the first extraordinary shareholders’ meeting in 2021 and poll results of the
49th meeting of the fifth board of directors of the Company, the unlocking conditions for the first unlocking
period regarding the second grant of the reserved part of the restricted shares under the 2021 Restricted
Shares Incentive Plan of the Company have been fulfilled, and 56,940 shares held by 31 incentive targets can
be unlocked. The recognized share payment amount was RMB 2,265,774.00, which should be transferred
from capital reserve (other capital reserve) to capital reserve (share capital premium), the amount of treasury
stock decreased by RMB2,530,326.00, and the amount of other payables decreased by RMB 2,530,326.00;
2) Share capital of RMB 1,026.00 and capital reserve (share capital premium) of RMB 92,194.93 were
generated from conversion of the convertible bonds. Please refer to “46. Bonds payables”, “VII. Notes to the
Items in the Consolidated Financial Statements”, “Section X Financial Report” of this report for details;
3) Minority shareholders of the subsidiary Jiangsu Huayou made capital contribution at a premium,
generating capital premium of RMB 10,500,000. The Company recognized the capital premium of RMB
3,675,000 based on the shareholding ratio;
The capital reserve (share capital premium) decreases by RMB 6,841,883.70 in the current period,
including the following
183 / 262
Upon authorization by the first extraordinary shareholders’ meeting in 2021 and the second
extraordinary shareholders’ meeting in 2022 and poll results of the 49th meeting of the fifth board of directors
of the Company, the Company repurchased and cancelled 214,113 restricted shares granted to 30 incentive
targets but not yet unlocked. The share capital decreased by RMB 214,113.00, the capital reserve (share
capital premium) decreased by RMB6,841,883.70, the amount of treasury stock decreased by
RMB7,019,693.70, and the amount of other payables decreased by RMB7,019,693.70.
(2) Increase/decrease of other capital reserve in the current period
Capital reserve (other capital reserve) increased by RMB236,838,411.21 in the current period, which is the
share payment amount of RMB236,838,411.21 for restricted shares in 2023 recognized in accordance with
the Company’s shares incentive plan.
Capital reserve (other capital reserve) decreased by RMB 2,265,774.00 in the current period, which is the
share payment amount of RMB2,265,774.00 recognized due to unlocking the second grant of the reserved
part of the restricted shares under the Company’s 2021 Restricted Shares Incentive Plan, and transferred from
capital reserve (other capital reserve) to capital reserve (share capital premium).
56. Treasury stock

Restricted shares 631,014,574.20 13,447,236.90 617,567,337.30
Total 631,014,574.20 13,447,236.90 617,567,337.30

(1) Holders of restricted shares in this period received dividends on ordinary shares, resulting in a
reduction of treasury stock by RMB 3,897,217.20 and other payables by RMB 3,897,217.20;
(2) For other changes, please refer to the contents of “55. Capital reserve”, “VII. Notes to the Items in
the Consolidated Financial Statements”, “Section X Financial Report” of this report for details.

Amount incurred in the current period
Less: amount
Less: amount recorded in
Amount included in other other
incurred comprehensive comprehensive Less: Attributable Attributable
Beginning Ending
Item before income previously incomes in the income to parent to minority
balance balance
income tax in and then prior period and tax company shareholders
the current transferred into converted into expense after tax after tax
period current profits and retained
losses earnings in the
current period
I. Other
comprehensive
incomes that -49,068,581. -49,068,
cannot be 76 581.76
reclassified into
profit and loss
Including: change
in
re-measurement
of the defined
benefit plan
Other
comprehensive
income that
cannot be
transferred to
profit or loss
184 / 262
under the equity

method
Changes in fair
value of the other -49,068,581. -49,068,
equity instrument 76 581.76
investment
Changes in the
fair value of the
Company’s own
credit risk
II. Other
comprehensive
825,474,144 948,113,037. 716,650,875. 231,462,161 1,542,12
income that will
.63 45 47 .98 5,020.10
be reclassified to
profit and loss
Including: other
comprehensive
income that can
51,984,326. 34,961,428.0 34,961,428.0 86,945,7
be transferred to
23 8 8 54.31
profit and loss
under the equity
method
Changes in fair
value of other
debt investments
Amount of
financial assets
reclassified into
other
comprehensive
income
Provision for
credit impairment
of other creditors’
rights investments
Cash flow hedge
reserves
Differences
arising from
translation of 773,489,818 913,151,609. 681,689,447. 231,462,161 1,455,17
foreign-currency .40 37 39 .98 9,265.79
financial
statements
Total other
776,405,562 948,113,037. 716,650,875. 231,462,161 1,493,05
comprehensive
.87 45 47 .98 6,438.34
income
Other remarks (including remarks to the adjustment converting effective part of profit and loss of cash
flow hedges to the initial recognition amount of the hedged item):
None
58. Special reserves

Safety
42,456,833.05 42,456,833.05
production fee
Mine
development 27,349,451.51 9,113,127.42 155,644.82 36,306,934.11
fund
Total 27,349,451.51 51,569,960.47 42,612,477.87 36,306,934.11
185 / 262
The safety production fee are withdrawn and used by the Company and its subsidiaries Huayou Quzhou,
New Energy Quzhou, etc. in accordance with the Administrative Measures for the Withdrawal and Use
of Enterprise Safety Production Fee jointly issued by the Ministry of Finance and the State
Administration of Work Safety (Cai Qi [2022] No. 136). The Mine development fund is withdrawn by
subsidiaries CDM Company and MIKAS Company in accordance with the relevant provisions of the
Mining Law of the Democratic Republic of Congo.
59. Surplus reserves

Item Beginning balance Increases in the Decrease in the Ending balance
Statutory surplus 328,198,605.34 328,198,605.34
reserves
Discretionary
surplus reserves
Reserve funds
Enterprise
development funds
Others
Total 328,198,605.34 328,198,605.34
Notes to the surplus reserves (including remarks to the increase/decrease in the current period and the
reason therefor):
None
60. Undistributed profits

Item Amount in the current period Amount in last year
Undistributed profit as at end of the
11,903,922,527.16 8,376,281,013.68
previous period before adjustment
Total adjustment to undistributed
profits as at the beginning of the
period (“+” for increase, “-” for
decrease)
Undistributed profits as at the
beginning of the current period after 11,903,922,527.16 8,376,281,013.68
adjustment
Plus: net profit attributable to owners
of the parent company in the current 2,085,104,942.66 3,909,880,668.82
period
De-recognition of other equity 2,513,800.00
instrument investments
Less: withdrawal of statutory surplus 18,466,340.44
reserves
Withdrawal of discretionary
surplus reserves
Withdrawal of generic risk
reserves
Ordinary share dividends payable 319,856,706.60 366,286,614.90
Ordinary share dividends
transferred to share capital
186 / 262
Undistributed profits as at the end of

13,669,170,763.22 11,903,922,527.16
the period
Details of the adjustment of undistributed profits at the beginning of period:
1). Due to retroactive adjustment under the Accounting Standard for Business Enterprises and relevant
new regulations, the undistributed profits at the beginning of the period is affected by RMB 0.00.
2). Due to change in accounting policy, the undistributed profits at the beginning of the period are
affected by RMB 0.00.
3). Due to correction of major accounting errors, the undistributed profits at the beginning of the period
are affected by RMB 0.00.
4) Due to changes in consolidation scope caused by business combination under common control, the
undistributed profits at the beginning of the period are affected by RMB 0.00.
5) Due to other adjustments, the undistributed profits at the beginning of the period are affected by RMB
0.00.
61. Operating income and operating cost

(1) Details of operating income and operating cost
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Primary
32,604,215,671.85 27,833,734,932.10 30,448,516,515.74 24,736,210,738.15
business
Other
741,321,847.91 538,577,016.30 569,787,751.32 321,523,494.00
businesses
Total 33,345,537,519.76 28,372,311,948.40 31,018,304,267.06 25,057,734,232.15
(2) Income from contracts

Classification of contracts Division 1 Total
By commodity type
Cobalt products 2,319,054,315.83 2,319,054,315.83
Copper products 2,519,872,683.90 2,519,872,683.90
Nickel products 3,132,006,119.15 3,132,006,119.15
Ternary precursor 4,982,425,191.87 4,982,425,191.87
Cathode materials 10,720,212,662.98 10,720,212,662.98
Nickel intermediate 3,820,418,472.14 3,820,418,472.14
Lithium products 659,215,594.74 659,215,594.74
Trade and others 5,188,894,902.58 5,188,894,902.58
By business area
Domestic 15,401,752,868.72 15,401,752,868.72
Overseas 17,940,347,074.47 17,940,347,074.47
By market or customer type
By contract type
By time of commodity transfer
Recognition of income at a certain 33,342,099,943.19 33,342,099,943.19
point of time
By contract term
By sales channel
Total 33,342,099,943.19 33,342,099,943.19
Remark to the income from contracts:
187 / 262
Among them, the income from contracts is RMB 33,342,099,943.19, and the cost is RMB
28,370,847,309.84. The difference between it and the total operating income is rental income in other
business income.
(3) Remark to performance obligations:

(4) Remark to apportioned to the remaining performance obligations:

Other remarks:
None
62. Taxes and surcharges

Amount incurred in the current Amount incurred in the previous
Item
period period
Consumption tax
Business tax
6,561,399.75 16,547,849.68
construction tax
Educational surcharges 2,817,581.18 7,094,337.04
Resource tax
Property tax 21,023,176.06 7,716,498.86
Land use tax 12,680,483.87 3,617,711.46
Vehicle and vessel use tax 49,023.15 8,499.73
Stamp tax 24,525,086.59 12,948,190.57
Local educational surcharges 1,878,388.51 4,736,636.34
Mining tax 149,029,903.98 229,296,560.81
Export tariffs
Environmental protection tax
Disabled employment security
fund
Others 1,675,249.35 3,432,585.31
Total 220,240,292.44 285,398,869.80
Other remarks:
None
63. Selling and distribution expenses

Amount incurred in the Amount incurred in the
Item
current period previous period
Employee compensations 21,952,376.02 18,194,388.87
Others 42,354,349.78 15,063,006.30
Total 64,306,725.80 33,257,395.17
Other remarks:
None
188 / 262
64. General and administrative expenses

Item Amount incurred in the Amount incurred in the
Employee compensations and incentives 434,182,623.33 316,431,937.63
Office expense 75,537,406.95 51,832,110.48
Services fee 147,848,958.80 84,645,460.54
Business entertainment expenses 13,196,103.46 9,901,375.49
Depreciation and amortization 120,886,568.34 66,087,327.62
Insurance premium 16,086,470.40 17,200,041.09
Aircraft usage fee 6,074,878.75 8,082,819.63
Share-based payment fees 236,838,411.21 113,149,081.73
Others 65,034,881.17 93,631,934.02
Total 1,115,686,302.41 760,962,088.23
Other remarks:
None
65. R&D expenses

Employee compensations 212,271,001.71 123,956,277.11
Material consumption 372,179,358.19 654,685,612.86
Depreciation and amortization 91,551,326.72 29,584,517.35
Others 83,736,930.87 31,508,563.93
Total 759,738,617.49 839,734,971.25
Other remarks:
None
66. Financial expenses

Interests expense 1,014,387,408.71 457,399,824.85
Interests income -118,381,450.87 -52,888,581.03
Profit or loss on exchange -436,290,858.16 -103,688,132.55
Handling charges and others 78,999,263.18 51,621,008.53
Total 538,714,362.86 352,444,119.80
Other remarks:
None
67. Other incomes

Item
Government subsidies related to assets 21,273,973.15 15,758,213.49
Government subsidies related to income 132,686,907.20 134,265,029.06
Return of handling charges for withholding 1,104,241.56
2,192,775.58
individual income tax
189 / 262
Total 156,153,655.93 151,127,484.11

Other remarks:
None
68. Investment income

Item
Long-term equity investment income
899,796,221.85 651,592,731.71
accounted by equity method
Income from disposal of long-term
3,191,849.90 -6,393,858.53
equity investments
Investment income from
available-for-sale financial assets during
the holding period
Dividend income from other equity
instrument investments during the
holding period
Interests income from debt investments
13,238,849.16
during the holding period
Interests income from other debt
investments during the holding period
Investment income from disposal of
held-for-trading financial assets
other equity instruments investment
creditor’s right investments
other creditor’s right investments
Income from debt restructuring
Investment income from disposal of -117,324,378.77 -91,874,250.46
financial instruments
Investment income from financial 2,857,058.67 4,196,429.87
products
Total 788,520,751.65 570,759,901.75
Other remarks:
None
69. Gains from net exposure hedge

70. Gains from changes in fair value

Sources for gains from change in fair Amount incurred in the current Amount incurred in the
value period previous period
Held-for-trading financial assets 137,684,032.30 5,384,944.48
Including: income from changes in
fair value arising from derivative 128,604,308.28 5,384,944.48
190 / 262
Held-for-trading financial liabilities -50,853,870.53 -97,227,339.05

Investment real estates measured at
fair value
Income from change in fair value of 258,979.16
financial products
Hedge gain or loss 45,150,457.31 -4,489,691.59
Total 131,980,619.08 -96,073,107.00
Other remarks:
None
71. Loss from credit impairment

Item
Loss from bad debts of notes receivable
Loss from bad debts of accounts
receivable
Loss from bad debts of other receivables
Losses from impairment of debt
investments
Losses from impairment of other debt
investments
Loss from bad debts of long-term
receivables
Loss from impairment of contract assets
Loss from bad debts -71,078,135.82 -218,340,909.98
Total -71,078,135.82 -218,340,909.98
Other remarks:
None
72. Asset impairment loss

Amount incurred in the Amount incurred in the previous
Item
current period period
I. Loss from bad debts
II. Loss from depreciation of
inventories and impairment of -18,786,617.48 -537,000,710.94
contract performance costs
III. Loss from impairment of
long-term equity investments
IV. Loss from impairment of
investment real estates
V. Loss from impairment of fixed
assets
VI. Loss from impairment of project
materials
VII. Loss from impairment of
construction in progress
VIII. Loss from impairment of
productive biological assets
IX Loss from impairment of oil and
natural gas assets
191 / 262
X. Loss from impairment of

intangible assets
XI. Loss from impairment of -1,032,217.39
goodwill
XII. Others
Total -19,818,834.87 -537,000,710.94
Other remarks:
None
73. Gains from disposal of assets

Item Amount incurred in the current Amount incurred in the previous
period period
Income from disposal of fixed -3,019,116.47 9,658.92
assets
Total -3,019,116.47 9,658.92
Other remarks:
None
74. Non-operating income

Amount included in the
Item current non-recurring
profit or loss
Total gains or losses
from disposal of 4,881.96 563,222.72 4,881.96
non-current assets
Including: gain from
disposal of fixed 4,881.96 563,222.72 4,881.96
assets
Gain from
disposal of intangible
assets
Gain from debt
restructuring
Gain from exchange
of non-monetary
assets
Donations received
Government subsidies
Compensation 982,043.50 3,000,000.00 982,043.50
received
Liquidated damages 1,621,500.00 1,621,500.00
received
Others 2,031,603.38 2,595,801.00 2,031,603.38
Total 4,640,028.84 6,159,023.72 4,640,028.84
Government subsidies included in the current profit or loss:

Other remarks:
192 / 262
75. Non-operating expenses

Amount included in the
Item current non-recurring
profit or loss
Total losses from
disposal of 11,501,777.19 1,205,732.46 11,501,777.19
non-current assets
Including: loss from
disposal of fixed 11,302,122.19 1,205,732.46 11,302,122.19
assets
Loss from 199,655.00
disposal of intangible 199,655.00
assets
Loss from debt
restructuring
Loss from exchange
of non-monetary
assets
Donations made 10,442,223.61 450,066.74 10,442,223.61
Others 3,130,035.41 1,930,416.92 3,130,035.42
Total 25,074,036.21 3,586,216.13 25,074,036.21
Other remarks:
None
76. Income tax expense

(1) Statement of income tax expense
Amount incurred in the current Amount incurred in the previous
Item
period period
Current income tax expense 264,831,103.64 680,794,474.85
Deferred income tax expense 24,765,190.35 -142,131,079.68
Total 289,596,293.99 538,663,395.17
(2) Adjustment process of accounting profit and income tax expense

Item Amount incurred in the current period
Total profit 3,236,844,202.49
Income tax expense calculated according to
485,526,630.37
statutory/applicable tax rate
Effect of applying different tax rates to
35,584,079.80
subsidiaries
Effect of adjustment on income tax in previous
periods
Effect of non-taxable income -211,556,729.80
Impact from non-deductible costs, expenses and
-42,843,328.59
losses
193 / 262
Effect of using the deductible losses from

deferred income tax assets unrecognized in the
previous periods
Effect of deductible temporary differences or 22,885,642.21
deductible losses of unrecognized deferred
income tax assets in the current period
Income tax expense 289,596,293.99
Other remarks:

See the note for details.
78. Items in the Statement of Cash Flows

(1) Cash received from other operating activities
period period
Recovery of cash and bank balances that
do not meet the definition of “cash and 1,030,421,434.82 1,596,883,996.13
cash equivalents”
Received government subsidies related
244,678,832.57 184,156,481.72
to operating activities
Others 4,640,028.84 2,595,801.00
Total 1,398,121,747.10 1,836,524,859.88
Remarks to cash received from other operating activities:
None
(2) Cash paid for other operating activities

period period
Payment of cash and bank balances that
do not meet the definition of “cash and 502,043,686.12 2,739,327,300.65
cash equivalents”
Out-of-pocket expenses 481,477,157.97 341,804,364.90
L/C deposit 289,835,691.55
Total 983,520,844.09 3,370,967,357.10
Remarks to cash paid for other operating activities:
None
(3) Cash received from other investing activities

Item Amount incurred in the current Amount incurred in the
period previous period
194 / 262

do not meet the definition of “cash and 1,296,962,686.32 238,601,618.28
cash equivalents”
Received repayment of inter-bank
328,350,521.76
lending
Received interests on inter-bank lending 13,438,205.62
Equipment payment received from
269,731,327.93
Indonesian Huafei
Total 1,625,313,208.08 521,771,151.83
Remarks to cash received from other investing activities:
None
(4) Cash paid for other investing activities

do not meet the definition of “cash and 472,672,756.88 474,240,800.63
cash equivalents”
Inter-bank lending 331,963,421.76 120,544,960.97
Refund of advance equity payment 246,047,900.00
Equipment payment paid by Indonesian
566,869,605.74
Huafei
Disposal of HANARI 171,388.08
Total 1,050,684,078.64 1,161,826,755.42
Remarks to cash paid for other investing activities:
None
(5) Cash received from other financing activities

do not meet the definition of “cash and 916,517,753.46 620,221,956.10
cash equivalents”
Financing funds under after-sale
1,438,076,810.66 637,356,301.88
repurchase agreement
Inter-bank lending 117,805,785.81 746,550,426.75
Financing funds under the after-sale
1,078,903,676.58 3,016,198,387.66
leaseback agreement
Cash received from discounted
6,000,000.00
financing bank acceptance bills
Transfer of partial equity of subsidiaries 276,655,616.49
Total 3,551,304,026.51 5,302,982,688.88
Remarks to cash received from other financing activities:
None
(6) Cash paid for other financing activities

195 / 262

do not meet the definition of “cash and 1,187,604,570.24 799,999,554.93
cash equivalents”
Repayment funds for after-sales
664,821,028.64 139,707,302.12
repurchase
Inter-bank lending
Payment funds for after-sales leaseback 511,073,305.87 468,290,106.77
Financing bank acceptance bills subject
to acceptance upon maturity
Issuance costs 1,563,333.33 48,930,000.00
Recovery of after-sales leaseback
69,010,200.00
deposit
Payment for lease liabilities 21,422,440.15 32,282,970.91
Others
Total 2,386,484,678.23 1,558,220,134.73
Remarks to cash paid for other financing activities:
None
79. Supplementary information to the Statement of Cash Flows

(1) Supplementary information to the Statement of Cash Flows
Supplementary information Amount in the current period Amount in the previous period
1. Net profit adjusted to cash flows from operating activities:
Net profit 2,947,247,908.50 3,023,164,319.94
Plus: provision for asset impairment 19,818,834.87 537,000,710.94
Loss from credit impairment 71,078,135.82 218,340,909.98
Depreciation of fixed assets, oil and
natural gas assets and productive 1,223,173,982.61 678,994,707.99
biological assets
Depreciation of right of use assets 33,412,612.60 15,586,577.50
Amortization of intangible assets 59,900,534.94 46,924,137.65
Amortization of long-term deferred
40,005,083.50 13,787,741.01
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term 3,019,116.47 -9,658.92
assets (“-” for gains)
Loss from scrapping of fixed assets
11,501,777.19 642,509.74
(“-” for gains)
Loss on changes in fair value (“-” for
-131,980,619.08 96,073,107.00
gains)
Financial expenses (“-” for gains) 608,506,785.84 457,399,824.85
Investment loss (“-” for gains) -788,520,751.65 -674,363,635.43
Decrease in deferred income tax assets
-54,531,285.21 -157,970,457.02
(“-” for increase)
Increase in deferred income tax
79,296,475.56 15,839,377.34
liabilities (“-” for decrease)
Decrease in inventories (“-” for
-570,805,117.15 -5,012,717,859.74
increase)
196 / 262
Decrease in operating receivables (“-”

758,005,186.42 -5,772,186,973.26
for increase)
Increase in operating payables (“-” for
-2,751,490,394.89 5,334,620,253.26
decrease)
Others 236,838,411.21 121,463,348.65
1,794,476,677.55 -1,057,411,058.52
activities
2.Significant investing and financing activities that do not involve in cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds maturing
within 1 year
Fixed assets acquired under financing
leases
3．Net changes in cash and cash equivalents:
Ending balance of cash 9,656,926,997.30 12,918,044,204.99
Less: beginning balance of cash 8,579,643,614.59 6,108,393,395.75
Plus: ending balance of cash
equivalents
Less: beginning balance of cash
equivalents
Net increase in cash and cash
1,077,283,382.71 6,809,650,809.24
equivalents
(2) Net cash paid for acquisition of subsidiaries in the current period
Item Amount
Cash or cash equivalents paid in the period for business 345,192,630.36
combinations incurred during the period
KNI 345,192,630.36
Less: cash and cash equivalents held by subsidiaries on the date of 305,732.18
acquisition
KNI 305,732.18
Net cash paid for acquisition of subsidiaries 344,886,898.18
Other remarks:
None
(3) Net cash received from disposal of subsidiaries in the current period
(4) Composition of cash and cash equivalents

I. Cash 9,656,926,997.30 8,579,643,614.59
Including: cash in hand 12,164,515.33 25,777,978.79
Unrestricted bank deposit
8,396,578,433.95 8,023,817,529.04
available for payment
Other unrestricted cash and
1,248,184,048.02 530,048,106.76
bank balances
197 / 262
Unrestricted deposits in central

bank
Deposits with banks and other
Loans from banks and other
II. Cash equivalents
Including: bond investments
maturing within 3 months
III. Ending balance of cash and cash
9,656,926,997.30 8,579,643,614.59
equivalents
Including: restricted cash and cash
equivalents of the parent company or
subsidiaries within the group
Other remarks:
80. Notes to items in the Statement of Changes in Equity

Specify the name, adjustment amount and other matters of “Others” item with ending balance in last
year adjusted:
81. Assets with restricted ownership or right of use

Item Ending book Reason for restriction
value
The RMB 5,774,551,004.71 is other cash and cash
equivalents, including the bank acceptance deposit of
RMB 3,736,964,573.19, letter of credit deposit of RMB
Cash and cash 594,226,255.96, letter of guarantee deposit of RMB
5,774,551,004.71
equivalents 6,052,500.00, loan deposit of RMB 1,187,604,570.24,
forward foreign exchange settlement deposit of RMB
239,432,279.13, and other deposits of RMB
10,270,826.19.
Receivables financing 507,584,900.22 Being used as pledge guarantee for bank financing
Being used as pledge guarantees for financing of financial
Inventories 426,352,239.19 institutions and inventory corresponding to after-sales
repurchase
Fixed assets 13,716,062,708.72
fixed assets corresponding to after-sales leaseback
Intangible assets 283,450,947.97 Being used as mortgage guarantee for bank financing
Held-for-trading
financial assets
Construction in progress 4,494,031,887.05 construction in progress corresponding to after-sales
leaseback
Total 25,409,739,010.95 /
Other remarks:
At the end of the period, the Company provided pledge guarantees for its financing with the
36.86% equity of Tianjin B&M, 80.00% equity of CDM Company, 80.68% equity of Huayou Quzhou,
198 / 262
100.00% equity of Huayuan Copper, 30.00% equity of Huake Nickel, 57.00% equity of Huayue
Company, and 50% equity of Prospect Lithium which are all its subsidiaries.
According to the Account Pledge Agreement signed between Huayue Company and Jakarta Branch
of Bank of China (Hong Kong) Limited, Huayue Company has pledged some of its accounts opened in
the bank to the bank. For details, please refer to “1. Major commitments”, “XIV. Commitment and
Contingencies”, “Section X Financial Report” in this report for details.
82. Monetary items in foreign currency

(1) Monetary items in foreign currency
Monetary unit: Yuan
Ending balance in Ending balance
Item Conversion rate
foreign currency translated in RMB
Cash and cash equivalents - - 6,716,824,470.51
Including: USD 912,175,480.84 7.2258 6,591,197,589.45
EUR 489,878.63 7.8771 3,858,822.96
HKD 1,169,214.47 0.9220 1,077,992.36
IDR 225,162,351,851.00 0.0005 108,978,578.30
ZAR 16,389,513.45 0.3864 6,332,580.21
CDF 467,360,575.87 0.0031 1,437,133.77
SGD 6,430.18 5.3442 34,364.17
ZWL 173,703,880.40 0.0225 3,907,409.30
Accounts receivable - - 6,406,466,031.48
Including: USD 884,419,614.66 7.2258 6,390,639,251.61
IDR 32,323,491,436.00 0.0005 15,644,569.86
ZAR 471,582.41 0.3864 182,210.01
Long-term borrowings - - 8,559,760,845.24
Including: USD 1,184,610,817.52 7.2258 8,559,760,845.24
Other receivables - - 492,018,447.42
Including: USD 65,438,958.42 7.2258 472,848,825.74
EUR 8,280.00 7.8771 65,222.39
HKD 1,200.00 0.9220 1,106.38
IDR 38,885,912,419.00 0.0005 18,820,781.61
ZAR 92,000.00 0.3864 35,546.96
HUF 11,638,282.00 0.0212 246,964.34
Long term receivables - - 514,561,943.41
Including: USD 52,763,829.32 7.2258 381,260,828.39
IDR 267,001,996,830.00 0.0005 133,301,115.02
Short-term borrowings - - 677,909,496.14
Including: USD 77,866,950.52 7.2258 562,651,011.07
EUR 816,529.69 7.8771 6,431,886.02
HKD 118,035,748.12 0.9220 108,826,599.05
Accounts payable - - 3,535,436,476.54
Including: USD 398,840,581.22 7.2258 2,881,942,271.78
EUR 468,452.03 7.8771 3,690,043.49
IDR 1,335,581,259,383.26 0.0005 646,421,329.54
ZAR 8,755,193.68 0.3864 3,382,831.73
Other payables - - 836,790,103.19
Including: USD 93,503,252.99 7.2258 675,635,805.46
IDR 332,963,425,074.00 0.0005 161,154,297.74
Non-current liabilities maturing 934,130,964.15
- -
within one year
199 / 262
Including: USD 129,277,168.50 7.2258 934,130,964.15

Long-term payables - - 2,851,224,614.73
Including: USD 394,589,473.10 7.2258 2,851,224,614.73
Other remarks:
None
(2) Remarks to overseas business entities, including for important overseas business entities, its
principal place of business overseas, the functional currency and selection basis therefor, as
well as the reason for the change of the functional currency (if any)
Overseas operating entities Main place of business Functional currency Basis for selection
Huayou Hong Kong Hong Kong HKD Local currency
Huayou Singapore Singapore USD Major local currency
CDM Company D. R. Congo USD Major local currency
MIKAS Company D. R. Congo USD Major local currency
PLZ Company Zimbabwe USD Major local currency
Huayue Company Indonesia USD Major local currency
Huake Company Indonesia USD Major local currency
Huafei Company Indonesia USD Major local currency
83. Hedging
Disclosure of qualitative and quantitative information related to hedged items, related hedging
instruments, and hedging risks according to the category of hedges:
Fair value of hedging Gain or loss on hedging
Name of hedged Hedging Gain or loss arising from the
instrument at the end of instruments in the current
items instruments hedging risk of the hedged item
the period period
Inventories
Nickel futures
containing nickel 719,391,740.54 1,192,770,567.00 -1,147,620,109.69
contracts
metal
Sub-total 719,391,740.54 1,192,770,567.00 -1,147,620,109.69
During the reporting period, the Company held inventories containing nickel metal. In order to avoid the risk
of price fluctuations of the inventories containing nickel metal, the Company used nickel futures contracts or
LME nickel futures contracts of Shanghai Futures Exchange for hedging.The Company used hedge
accounting methods for accounting treatment.As of the end of the period, the Company’s position in nickel
futures contracts resulted in a profit of RMB 719,391,740.54 from changes in fair value. The current nickel
futures contracts generated a total profit of RMB 1,192,770,567.00, and the inventories containing nickel
metal suffered a loss of RMB 1,147,620,109.69 due to hedging risks. The ineffective hedging profit was
RMB 45,150,457.31 (including profit of RMB 0.00 for closed position and profit of RMB 45,150,457.31 for
open position).
84. Government subsidies

(1) Basic information of government subsidies
Amounts included in
Category Amount Items presented
current profit and loss
Subsidy for the projects ee 31,566.02
Deferred income, other
of informatization and
income
industrialization
Funding and supporting 500,000.04
subsidies for Deferred income, other
provincial-level key income
enterprises and research
200 / 262
institutes
Financial subsidies for 38,280,000.00 1,999,060.57
industrial Deferred income, other
transformation and income
upgrading
Enterprise support e Deferred income, other 1,261,045.56
funds income
Financial subsidies for 48,200,000.00 3,039,991.64
technological
income
innovation
Financial subsidies for 847,712.70
technological
income
transformation
Subsidy for 4,825,800.00 6,306,993.91
infrastructure
income
construction
Special subsidies for 344,565.60
energy conservation Deferred income, other
and industrial circular income
economy
Subsidies for life cycle 601,045.80
green manufacturing
income
projects
Subsidies for the 311,508.48
project of wastewater
treatment optimization Deferred income, other
and comprehensive income
utilization of renewable
resources
Central special fund for 90,000.00
air pollution prevention
income
and control
Project of industrial 1,500,000.00 517,729.02
chain collaborative
income
innovation
Subsidies for industrial 4,495,000.00 435,043.30
internet innovation and
income
development projects
Enterprise development 2,403,200.00 Deferred income, other 6,008,000.00
support funds income
Subsidy for 500,000.00
collaborative innovation Deferred income, other
projects in high-quality income
development industries
Subsidies for industrial 500,000.04
productive investment
income
projects
Subsidies for 2,000,000.00 3,457,710.00
innovation driven
income
funding projects
Subsidies for fixed Deferred income, other 191,991.34
assets investment income
Special subsidies for 5,000,000.00 2,241,128.71
technological
income
transformation
Other sporadic 14,313,805.94 Deferred income, other 3,307,536.57
201 / 262
subsidies income
Tax returns 582,832.86 Other income 582,832.86
Subsidy for stabilizing 2,831,860.74 2,831,860.74
Other income
posts
Financial incentives and 104,095,000.00 104,095,000.00
Other income
subsidies
Other sporadic 13,958,557.45 13,958,557.45
Other income
subsidies
Financial interest 3,509,092.28 3,509,092.28
Finance expenses
subsidies
Total 245,995,149.27 157,469,972.63
(2) Return of government subsidies

Other remarks:
None
85. Others
VIII. Changes in Consolidation Scope

1. Business combination not under common control
(1) Business combination not under common control incurred in the current period
Income of Net profit of
Basis for
the acquiree the acquiree
Date of Ratio of Method of determining
Cost of equity Acquisition from the from the
Acquiree equity equity equity the
acquisition date acquisition acquisition
acquisition acquisition acquisition acquisition
date to date to
date
period-end period-end
KNI
March 2023 IDR764,000,000,000 80.00% Subscription March 2023 See remarks 395,654.32
Company
Other remarks:
Based on the poll results of the 44th meeting of the fifth board of directors of the Company, the
Company and PT Vale Indonesia Tbk (“Vale Indonesia”) signed the Definitive Cooperation Agreement
on cooperation in KNI HPAL project. The Company, through its subsidiary Huaqi Hong Kong, will
subscribe for the additional shares of KNI Company at the price of IDR 764 billion. Based on the poll
results of the 51st meeting of the fifth board of directors of the Company, the Company changed the
subject of the cooperation with Vale Indonesia from Huaqi Hong Kong to the subsidiary Huaqi
Singapore. Upon completion of the change and subscription, Huaqi Singapore will hold 80% shares of
KNI Company and Vale Indonesia will hold 20% shares of KNI Company. As of March 31, 2023, the
Company has paid the share subscription consideration, handled the corresponding transfer of property
rights and obtained substantial control over it, so it has been included in the consolidated financial
statements since that date.
(2) Combination costs and goodwill

Combination cost KNI Company
--Cash 345,192,630.36
202 / 262
--Fair value of non-cash assets

--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity interests held prior to the
acquisition date on the acquisition date
--Others
Total combination costs 345,192,630.36
Less: Share of fair value of identifiable net assets
345,192,630.36
acquired
Goodwill/combination cost less than share of fair
value of identifiable net assets acquired
Method for determining the fair value of the combination cost, or contingent consideration and their
change:
None
Main reason for the formation of the goodwill with large amount:
None
Other remarks:
None
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
(4) Profit or loss arising from the re-measurement of equity held prior to acquisition date at
the fair value
Whether there is a transaction where any step-by-step combination is realized through multiple
transactions with the controlling rights obtained during the Reporting Period.
(5) Remarks to combination consideration cannot be reasonably determined or fair values of

identifiable assets and liabilities of the acquiree on the acquisition date or at the end of the period
of combination
(6) Other remarks:

2. Business combination under the common control

3. Counter purchase
203 / 262
4. Disposal of subsidiaries
Whether there is a loss of control due to disposal of investment in subsidiaries through a single transaction
Difference
between the
Determination Amount of
disposal price
method and other
and the share of Proportion Gains or losses
Book value Fair value of main comprehensive
Basis for net assets of the of arising from
of remaining remaining assumptions income related
Equity Equity Equity Time of determining subsidiary in remaining re-measurement
Name of equity on equity on of the fair to equity
disposal disposal disposal loss of the time of the equity on of the
subsidiary the date of the date of value of the investment in
price ratio method control loss of consolidated the date of remaining
loss of loss of remaining the subsidiary
control financial loss of equity at fair
control control equity on the transferred to
statements control value
date of loss of investment
corresponding
control profit or loss
to the disposal
of investment
The
Company
has
completed
the
procedures
Guangxi for the
0.00 100.00 Transfer May 2023 3,191,849.90 0.00 0.00
Recycling transfer of
property
rights and
lost
substantial
control over
it.
Other remarks:
204 / 262
The subsidiary Huayou Recycling holds 100.00% equity of Guangxi Recycling. According to the Equity Transfer Agreement signed between Huayou Recycling and
Zhejiang Youshan New Materials Co., Ltd. in May 2023, Huayou Recycling shall transfer 100% equity of Guangxi Recycling held by it to Zhejiang Youshan New Materials
Co., Ltd. at the consideration of 0. As Huayou Recycling no longer has substantial control over Guangxi Recycling, it is no longer included in the consolidated financial
statements as of that date.
5. Change in consolidation scope for other reasons

Specify the change of consolidation scope caused by other reasons (such as establishment of new subsidiaries and liquidation of subsidiaries) and other related
situations.
Method of equity Time of equity Amount of capital Contribution proportion
Company name
acquisition acquisition contribution (%)
Huayou International Investment New establishment March 2023 Contribution not made 65.00
Indonesia Huaxiang New establishment March 2023 USD980,000.00 98.00
Indonesia Huali New establishment March 2023 USD999,960.00 100.00
SLMR New establishment April 2023 USD980,000.00 98.00
B&M Hungary New establishment May 2023 EUR8000 100.00
Indonesia Huali New establishment May 2023 USD999,960.00 100.00
Shanghai Jintian New establishment June 2023 Contribution not made 65.00
6. Others
205 / 262
IX. Equity in other entities

1. Equity in subsidiaries
(1) Structure of the enterprise group
Principal Shareholding ratio

Subsidiary’s Registration Business Acquisition
place of (%)
name place nature method
business Direct Indirect
Huayou Quzhou Quzhou Manufacturing 100.00 Establishment
Quzhou City, City,
Zhejiang Zhejiang
Province Province
Huayou Hong Hong Kong Trade and 100.00 Establishment
Hong Kong Kong wholesale
industry
CDM D. R. D. R. Manufacturing 100.00 Establishment
Company Congo Congo
MIKAS D. R. D. R. Mine 100.00 Business
Company Congo Congo development combination
and sales of not under
mineral common
products control
Huayou Quzhou Quzhou Manufacturing 83.86 Establishment
New City, City,
Energy Zhejiang Zhejiang
Quzhou Province Province
Resource Quzhou Quzhou Sci-tech 100.00 Establishment
Recycling City, City, popularization
Zhejiang Zhejiang and
Province Province application
service
industry
Huajin Quzhou Quzhou Chemical 51.00 Establishment
Company City, City, materials and
Zhejiang Zhejiang chemical
Province Province products
manufacturing
Huayou Tongxiang Tongxiang Wholesale 60.00 Establishment
Puxiang City, City, industry
Zhejiang Zhejiang
Province Province
Huayue Indonesia Indonesia Manufacturing 57.00 Establishment
Company
Tianjin Tianjin Tianjin City Manufacturing 36.86 Business
206 / 262
B&M City combination

not under
common
control
Chengdu Jintang Jintang Manufacturing 100.00 Business
B&M County, County, combination
Sichuan Sichuan not under
Province Province common
control
Huake Indonesia Indonesia Manufacturing 70.00 Establishment
Company
Huafei Indonesia Indonesia Manufacturing 51.00 Business
Company combination
not under
common
control
Remarks to the subsidiaries in which the ownership ratio is different from the voting right ratio:
None
Basis for determining the control over an investee while holding its half or less than half voting
rights, and non-control over an investee while holding its more than half voting rights:
None
Basis for determining control in case of the important structured entities included in the scope of
consolidation:
None
Basis for determining whether the Company is an agent or a principal:

None
Other remarks:
The Company directly holds 36.86% equity of Tianjin B&M, and Huayou Holdings has entrusted
the Company with the voting right corresponding to the 25.20% equity of Tianjin B&M, so
Tianjin B&M was included in the consolidation scope. Chengdu B&M is a wholly-owned
subsidiary of Tianjin B&M.
(2) Major non-wholly owned subsidiaries

Profit and loss Dividend declared
Ownership ratio
Subsidiary’s attributable to to minority Ending balance of
of minority
name minority shareholders in the minority equity
shareholders (%)
shareholders in the current period
207 / 262
current period
Huajin 49.00 11,378,552.86 454,925,018.82
Company
Huayou 40.00 -22,345,616.34 599,186,296.68
Puxiang
Huayou New
Energy 16.14 39,913,137.86 590,325,244.20
Quzhou
Huayue 43.00 356,744,487.46 2,308,251,961.85
Company
Tianjin B&M 63.14 -29,639,486.20 1,142,893,562.18
Huake 30.00 166,825,826.53 432,910,287.25
Company
Huafei 49.00 -3,095,960.57 1,894,060,464.34
Company
Remarks to the subsidiaries in which the minority shareholder’s ownership ratio is different from
its voting right ratio:
Other remarks:
(3) Main financial information of major non-wholly owned subsidiaries

Non-c
Subsidiary’s Current Non-c Current Total
Current Non-current Total Non-current Total Current Total urrent
name liabilitie urrent liabilitie liabiliti
assets assets assets liabilities liabilities assets assets liabilit
s assets s es
ies
2,547
1,690,0 1,074, 107,1 1,642,6
Huajin 1,039,568,53 2,729,66 1,668,50 132,746,207. 1,801,247 1,473,39 ,870, 1,535,50
97,247. 476,53 65,69 73,646.
Company 0.09 5,777.77 1,164.05 97 ,372.02 3,977.70 515.6 7,954.41
68 7.92 1.90 31
2
1,691
1,174, 67,41 345,15
Huayou 875,974 1,234,914,12 2,110,88 555,584, 57,338,783.7 612,923,0 517,406, ,869, 277,745,
462,96 4,573. 9,775.5
Puxiang ,624.79 3.89 8,748.68 223.21 6 06.97 593.26 558.1 202.27
4.84 26 3
0
12,70
Huayou 8,634,3 13,712,1 4,513, 1,645, 9,292,7
5,077,788,54 7,816,36 2,239,131,61 10,055,49 8,188,70 2,204 7,647,14
New Energy 57,078. 45,627.8 503,92 649,6 92,529.
9.12 8,196.56 3.35 9,809.91 0,872.25 ,792. 2,838.46
Quzhou 71 3 0.64 91.38 84
89
Huayue 4,296,6 9,672,720,16 13,969,3 1,465,19 7,136,133,29 8,601,325 3,447,20 8,886, 12,33 981,517, 7,097, 8,078,8
Company 33,519. 6.46 53,685.7 2,567.95 9.52 ,867.47 5,420.67 466,77 3,672 324.76 299,2 16,551.
208 / 262
26 2 8.43 ,199. 26.70 46

11
22,14
2,205,6 18,121,0 4,023, 16,897,7 1,344, 18,242,
Tianjin 1,552,007,56 3,757,65 1,929,13 18,417,511.7 1,947,557 4,941
43,924. 93,155.3 848,08 18,092.4 828,8 546,89
B&M 3.89 1,488.49 9,643.28 0 ,154.98 ,239.
60 4 4.13 8 04.97 7.45
47
2,196,8 4,236
3,088, 2,816, 3,360,0
Huake 2,996,944,62 5,193,80 939,187, 2,811,580,22 3,750,767 1,148,57 ,686, 543,636,
57,634. 114,31 393,6 30,517.
Company 4.71 2,259.30 745.11 3.36 ,968.46 2,612.84 931.6 905.25
59 8.83 11.99 23
7
10,52
2,399,8 14,860,5 9,772, 1,644, 10,536,
Huafei 12,460,676,0 9,311,20 1,683,882,96 10,995,08 752,492, 4,963 8,891,99
42,785. 18,829.8 470,38 973,8 966,72
Company 44.75 6,342.02 8.76 9,310.78 936.40 ,320. 2,887.24
10 5 4.27 42.43 9.67
67
Amount incurred in the current period Amount incurred in the previous period
Subsidiary’s Total Cash flows from Total Cash flows from
Operating Net Operating Net
name comprehensive operating comprehensive operating
income profit income profit
income activities income activities
Huajin 39,68
1,531,174,787.1 23,221, 1,113,747,8
23,221,536.44 -174,549,722.17 1,295. 39,681,295.01 -74,424,285.65
Company 1 536.44 20.59
01
Huayou -5,416
-55,864 50,392,750.
53,879,630.50 -55,864,040.86 -137,903,332.06 ,992.8 -5,416,992.85 -57,666,360.56
Puxiang ,040.86 59
5
Huayou New 237,1
247,233 4,262,354,9 1,656,226,856.9
Energy 5,257,743,140.43 247,233,554.87 -2,254,193,924.34 73,90 237,173,905.77
,554.87 59.56 7
Quzhou 5.77
Huayue 1,350,
3,734,338,241.5 829,638 2,530,632,4 1,350,363,984.4
1,355,871,271.28 258,107,388.88 363,9 372,999,518.02
Company 0 ,342.93 78.94 6
84.46
137,0
1,478,497,017.4 -46,942 1,973,530,1
Tianjin B&M -46,942,486.86 -3,453,345.52 70,91 137,070,919.86 7,302,515.60
7 ,486.86 69.95
9.86
12,12
Huake 556,086
2,614,790,242.92 598,067,468.62 24,833,748.74 6,731. 33,974,138.08 -220,608,747.09
Company ,088.44
70
-6,313
Huafei -6,318,2
71,229,754.43 164,111.57 ,760.2 -13,948,235.57 -767,871.49
Company 86.88
1
Other remarks:
None
(4) Major restriction on using the assets of the enterprise group and repaying the debts
of the enterprise group:
209 / 262
(5) Financial or other supports provided for structured entities included in the
consolidated financial statement:
Other remarks:
2. Transactions which results in changes in owners’ equity in a subsidiary and remain in

control of the subsidiary
(1) Remarks to the changes in owners’ equity in the subsidiary
(2) Impacts of the transactions on minority shareholders’ equity and owners’ equity
attributable to the parent company
Other remarks:
3. Equity in joint ventures or associates

(1) Major joint ventures or associates

Shareholding Accounting
ratio (%) treatment
Name of joint method for
Principal place Registration Business
venture or investment
of business place nature
associate Direct Indirect in joint
ventures or
associates
Nonmetallic Accounted
Tongxiang Tongxiang
mineral for under
Puhua Company City, Zhejiang City, Zhejiang 40.00
products equity
Province Province
industry. method
Accounted
Mt Hawthorn Mineral for under
AVZ Company D. R. Congo 6.14
Wa Australia exploration equity
method
Wuxi City, Wuxi City, Nonmetallic Accounted
Leyou Company Jiangsu Jiangsu mineral 49.00 for under
Province Province products equity
210 / 262
industry. method
Accounted
Service for under
Veinstone Hong Kong Hong Kong 24.00
industry equity
method
Hamahira Accounted
Island, North for under
Jakarta,
IWIP Maluku Industrial park 24.00 equity
Indonesia
Province, method
Indonesia
Accounted
NEWSTRIDE Industrial for under
Hong Kong Hong Kong 30.00
TECHNOLOGY investment equity
method
Accounted
Quzhou City, Quzhou City,
Capital market for under
Quzhou Anyou Zhejiang Zhejiang 49.92
services equity
Province Province
method
Gwangyang Gwangyang Accounted
City, City, for under
PHC Company Manufacturing 35.00
Jeollanamdo, Jeollanamdo, equity
South Korea South Korea method
Guangxi Times Accounted
Yulin City, Yulin City,
Lithium-ion for under
Guangxi Guangxi
Battery Capital market equity
Zhuang Zhuang 49.47
Investment services method
Autonomous Autonomous
Management
Region Region
Center
Yulin City, Yulin City, Accounted
Guangxi Times
Guangxi Guangxi for under
Lithium-ion Capital market
Zhuang Zhuang 31.32 equity
Battery Industry services
Autonomous Autonomous method
Fund
Region Region
Accounted
Changsha City, Changsha City, for under
Hunan Yacheng Manufacturing 10.07
Hunan Province Hunan Province equity
method
Accounted
Quzhou City, Quzhou City,
Capital market for under
Quzhou Xinhua Zhejiang Zhejiang 49.96
services equity
Province Province
method
Tongxiang Tongxiang Accounted
Tongxiang Capital market
City, Zhejiang City, Zhejiang 40.00 for under
Lithium Times services
Province Province equity
211 / 262
method
235 Accounted
Sangongtuan for under
Gumi City, Second Road Production equity
Gyeongsangbuk (Zhenping and sales of method
LG-HY BCM 49.00
do, South Cave), Gumi cathode
Korea City, materials
Gyeongsangbuk
do
Remarks to the circumstance where shareholding ratio in joint ventures or associates are different
from the voting right ratio:
None
Basis for determining the voting rights below 20% but with significant influence, or the voting
rights over 20% (inclusive) without significant influence:
1) The Company is an important shareholder of AVZ Company with a shareholding of over 5%
and has the power to participate in decision-making on its financial and operational policies, and
thus has a significant impact on AVZ Company.
2) The Company holds 10.07% equity of Hunan Yacheng. It appoints a director to Hunan
Yacheng, and thus has a significant impact on Hunan Yacheng.
(2) Main financial information of major joint ventures

(3) Main financial information of associates

Ending balance/ amount incurred in Beginning balance/ amount
current period incurred in last period
Puhua Company AVZ Company Puhua Company AVZ Company
Current assets 721,002,466.26 186,560,007.08 569,226,353.67 294,326,636.31
Non-current assets 376,871,618.90 819,344,830.96 696,834,881.35 710,456,002.68
Total assets 1,097,874,085.16 1,005,904,838.05 1,266,061,235.02 1,004,782,638.99
Current liabilities 235,280,543.97 14,070,692.89 144,091,479.98 4,512,167.20

Non-current
482,123.98 5,457,453.47 10,294,485.23 5,340,773.11
liabilities
Total liabilities 235,762,667.95 19,528,146.37 154,385,965.21 9,852,940.31
Minority interests
Equity attributable to
shareholders of the 862,111,417.21 986,376,691.68 1,111,675,269.81 994,929,698.68
parent company
212 / 262
Share of net assets

calculated as per
shareholding ratio
Adjustment items
--Goodwill
--Unrealized profits
from internal
transactions
--Others
Book value of equity
investment in
associates
Fair value of equity
investment in
associates with
quoted price
Operating income
Net profit 56,692,532.09 -29,104,146.33 112,799,220.68 -94,014,960.25
Net profit from
discontinuing
operation
Other comprehensive
150,830,974.07 9,422,538.57
income
Total comprehensive
56,692,532.09 121,726,827.74 112,799,220.68 -84,592,421.68
income
Dividends received
from associates in the
current year
Ending balance/ amount incurred in Beginning balance/ amount incurred in

current period last period
NEWSTRIDE Leyou Company NEWSTRIDE Leyou Company
TECHNOLOGY TECHNOLOGY
Current assets 3,972,218,802.27 3,322,191,014.60 6,237,448,115.60 5,207,158,971.73
Non-current
6,209,376,307.15 1,860,457,886.89 5,292,504,382.43 1,897,336,959.04
assets
Total assets 10,181,595,109.42 5,182,648,901.49 11,529,952,498.03 7,104,495,930.77
Current
2,065,187,018.88 1,083,167,116.44 2,237,259,136.82 3,310,899,861.29
liabilities
213 / 262
Non-current
53,855,124.48 1,223,589,849.75 46,563,344.90 135,061,499.66
liabilities
Total
2,119,042,143.36 2,306,756,966.19 2,283,822,481.72 3,445,961,360.95
liabilities
Minority
3,792,726,870.71 3,410,190,235.54
interests
Equity
attributable to
shareholders 4,269,826,095.35 2,875,891,935.30 5,835,939,780.77 3,658,534,569.82
of the parent
company
Share of net
assets
calculated as
per
shareholding
ratio
Adjustment
items
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
equity
investment in
associates
Fair value of
equity
investment in
associates with
quoted price
Operating
income
Net profit 3,677,060,799.97 770,279,353.15 4,558,685,779.69 1,674,464,327.61
Net profit
from
discontinuing
214 / 262
operation
Other
comprehensive 148,305,551.74 353,957,759.60
income
Total
comprehensive 3,825,366,351.71 770,279,353.15 4,912,643,539.29 1,674,464,327.61
income
Dividends
received from
associates in
the current
year

Veinstone IWIP Veinstone IWIP
Current assets 523,438,814.00 936,238,787.94 811,258,486.11 467,286,398.51
Non-current
306,720,000.00 1,975,099,880.50 929,621,204.46 1,197,197,874.35
assets
Total assets 830,158,814.00 2,911,338,668.44 1,740,879,690.57 1,664,484,272.86
Current
485,420,585.43 852,550,422.03 926,295,045.96 183,480,229.38
liabilities
Non-current
819,991,737.40 37,796.88 760,706,932.95
liabilities
Total
485,420,585.43 1,672,542,159.43 926,332,842.84 944,187,162.33
liabilities
Minority
81,876,584.01 73,769,709.94
interests
Equity
attributable to
shareholders 262,861,644.56 1,238,796,509.01 740,777,137.79 720,297,110.53
of the parent
company
Share of net
assets
calculated as
per
shareholding
ratio
215 / 262
Adjustment
items
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
equity
investment in
associates
Fair value of
equity
investment in
associates with
quoted price
Operating
income
Net profit 75,101,249.47 59,508,910.36 123,412,114.46 238,764,283.80
Net profit
from
discontinuing
operation
Other
comprehensive 5,967,491.22 44,783,622.09 123,412,114.46 -13,715,098.52
income
Total
comprehensive 81,068,740.69 104,292,532.45 180,531,804.50 225,049,185.28
income
Dividends
received from
associates in
the current
year

Quzhou Anyou PHC Company Quzhou Anyou PHC Company
Current assets 16,454,447.75 371,858,158.73 19,717,797.37 102,924,422.61
Non-current 1,180,000,000.00 1,081,960,649.10 1,173,288,352.20 996,655,924.01
216 / 262
assets
Total assets 1,196,454,447.75 1,453,818,807.83 1,193,006,149.57 1,099,580,346.62
Current
1,785,205.48 561,359,748.74 2,786,326.37 139,580,858.10
liabilities
Non-current
454,062,447.98 341,296,167.64
liabilities
Total
1,785,205.48 1,015,422,196.72 2,786,326.37 480,877,025.74
liabilities
Minority
interests
Equity
attributable to
shareholders 1,194,669,242.27 438,396,611.11 1,190,219,823.20 618,703,320.88
of the parent
company
Share of net
assets
calculated as
per
shareholding
ratio
Adjustment
items
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
equity
investment in
associates
Fair value of
equity
investment in
associates with
quoted price
Operating
217 / 262
income
Net profit -8,277,817.30 -177,663,104.44 -8,640,169.16 -32,116,305.35
Net profit
from
discontinuing
operation
Other
comprehensive -22,459,513.15 18,740,784.96
income
Total
comprehensive -8,277,817.30 -200,122,617.58 -8,640,169.16 -13,375,520.39
income
Dividends
received from
associates in
the current
year

Hunan Yacheng Quzhou Xinhua Hunan Yacheng Quzhou Xinhua
Current assets 2,028,260,453.88 48,715,843.80 1,629,027,737.77 50,318,213.57
Non-current
2,270,366,379.03 2,330,000,000.00 1,972,182,626.41 2,319,268,429.01
assets
Total assets 4,298,626,832.91 2,378,715,843.80 3,601,210,364.18 2,369,586,642.58
Current
1,870,984,263.63 3,540,657.54 1,527,729,962.56 1,926,821.91
liabilities
Non-current
901,791,198.48 714,785,797.43
liabilities
Total
2,772,775,462.11 3,540,657.54 2,242,515,759.99 1,926,821.91
liabilities
Minority
168,730,120.37 178,882,076.96
interests
Equity
attributable to
shareholders 1,357,121,250.43 2,375,175,186.26 1,179,812,527.23 2,367,659,820.67
of the parent
company
Share of net
218 / 262
assets
calculated as
per
shareholding
ratio
Adjustment
items
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
equity
investment in
associates
Fair value of
equity
investment in
associates with
quoted price
Operating
income
Net profit -117,505,314.83 -16,699,499.43 172,134,321.53 -12,340,179.33
Net profit
from
discontinuing
operation
Other
comprehensive
income
Total
comprehensive -117,505,314.83 -16,699,499.43 172,134,321.53 -12,340,179.33
income
Dividends
received from
associates in
the current
year
219 / 262

Guangxi Times Guangxi Times Guangxi Times Guangxi Times
Lithium-ion Lithium-ion Lithium-ion Lithium-ion
Battery Battery Industry Battery Battery Industry
Investment Fund Investment Fund
Management Management
Center Center
Current assets 2,951,443.38 35,896,467.64 2,948,174.05 1,643,113,367.16
Non-current
1,200,500,000.00 2,764,270,000.00 1,196,995,203.62 2,959,697,915.73
assets
Total assets 1,203,451,443.38 2,800,166,467.64 1,199,943,377.67 4,602,811,282.89
Current
285,600,000.00 17,642,254.36 285,600,000.00 560,080,799.25
liabilities
Non-current
1,278,890,655.33
liabilities
Total
285,600,000.00 17,642,254.36 285,600,000.00 1,838,971,454.58
liabilities
Minority
-1,898.25
interests
Equity
attributable to
shareholders 917,851,443.38 2,782,524,213.28 914,343,377.67 2,763,841,726.84
of the parent
company
Share of net
assets
calculated as
per
shareholding
ratio
Adjustment
items
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
220 / 262
equity
investment in
associates
Fair value of
equity
investment in
associates with
quoted price
Operating
income
Net profit -1,877,015.65 -4,508,458.30 -3,504,796.38 -9,914,256.15
Net profit
from
discontinuing
operation
Other
comprehensive
income
Total
comprehensive -1,877,015.65 -4,508,458.30 -3,504,796.38 -9,914,256.15
income
Dividends
received from
associates in
the current
year

Tongxiang Tongxiang
LG-HY BCM LG-HY BCM
Lithium Times Lithium Times
Current assets 178,052,604.04 238,744.58
Non-current
1,783,749,255.07 300,259,513.77
assets
Total assets 1,961,801,859.11 300,498,258.35
Current
386,484,588.03 0.01
liabilities
Non-current
817,232,367.84
liabilities
Total 1,203,716,955.87 0.01
221 / 262
liabilities
Minority
interests
Equity
attributable to
shareholders
of the parent
company
Share of net
assets
calculated as
per
shareholding
ratio
Adjustment
items
--Goodwill
--Unrealized
profits from
internal
transactions
--Others
Book value of
equity
investment in
associates
Fair value of
equity
investment in
associates with
quoted price
Operating
income
Net profit -14,536,267.84 -51,741.66
Net profit
from
discontinuing
operation
Other
-2,014,051.16
comprehensive
222 / 262
income
Total
comprehensive -16,550,319.00 -51,741.66
income
Dividends
received from
associates in
the current
year
Other remarks:
None
(4) Summary of the financial information for those minor joint venture and associates
Ending balance/ amount Beginning balance/ amount
incurred in current period incurred in last period
Joint ventures:
Total book value of
6,432,854.93 6,248,464.42
investments
Totals of the following items calculated as per shareholding ratio
--Net profit 849,092.24 -103,540.65
--Other comprehensive
507,248.54 46,259.98
income
--Total comprehensive
1,356,340.79 -57,280.67
income
Associates:
Total book value of
239,268,941.10 13,471,803.10
investments
Totals of the following items calculated as per shareholding ratio
--Net profit -286,162.52 -817.60
--Other comprehensive
-715,773.42 3,474,631.70
income
--Total comprehensive
-1,001,935.93 3,473,814.10
income
Other remarks:
None
223 / 262
(5) Major restrictions on capital transferring from joints ventures or associates to the
Company:
(6) Excess losses incurred to joint ventures or associates

(7) Unrecognized commitments related to investments in joint ventures

(8). Contingent liabilities relevant to investment in joint ventures or associates

4. Major joint operation

5. Equity in structured entities not included in the consolidated financial statements

Remark to the structured entities not included in the consolidated financial statement:
6. Others
X. Risks Relating to Financial Instruments

√Applicable √Not applicable
The Company's objective in risk management is to balance the risks and benefits and the
Company aims to reduce the negative impact of risks on the Company's results of operations to a
minimum level, so that the interests of shareholders and other equity investors are
maximized.Based on these objectives, the basic strategy of the Company's risk management is to
identify and analyze the risks faced by the Company, set appropriate bottom line for risk tolerance
and conduct risk management, and timely and reliably monitor various risks to control the risks
within a limited range.
The Group faces risks from various financial instruments in its daily activities, including credit
risk, liquidity risk and market risk.The management has reviewed and approved policies for
managing these risks, which are summarized as follows.
(I) Credit risk
Credit risk refers to a risk that one party to the financial instruments suffers financial losses due to
the failure of the other party in performing the obligations
1. Practice of credit risk management
(1) Methods for evaluating credit risk
224 / 262
At each balance sheet date, the Company assesses whether the credit risk of the relevant financial
instruments has increased significantly since initial recognition.When determining whether credit
risk has increased significantly since initial recognition, the Company considers that it can obtain
reasonable and evidence-based information without paying unnecessary additional costs or efforts,
including qualitative and quantitative analysis based on the Company's historical data, external
credit risk ratings and forward-looking information.Based on a single financial instrument or a
portfolio of financial instruments with similar credit risk characteristics, the Company determines
the changes of default risk in the expected duration of the financial instrument by comparing the
risk of default of the financial instrument on the balance sheet date with the risk of default on the
initial recognition date.
When one or more of the following quantitative and qualitative standards are triggered, the
Company believes that the credit risk of financial instruments has increased significantly:
1) where the quantitative standard is mainly that the probability of default in the remaining
duration as of the balance sheet date is higher than that at the time of initial recognition;
2) where the qualitative standard is mainly significant adverse changes in the debtor's business or
financial situation, or changes in existing or anticipated technical, market, economic or legal
circumstances that will have a material adverse effect on the debtor's ability to repay the
Company.
(2) Definition of default and credit impaired assets
When a financial instrument meets one or more of the following conditions, the Company defines
the financial asset as having defaulted, and the standard is consistent with the definition of credit
impaired assets:
1) The debtor suffers severe financial difficulties;
2) The debtor violates the binding terms on the debtor in the contract;
3) The debtor is likely to go bankrupt or carry out other financial restructurings;
4) The creditor gives concessions to the debtor in any other circumstances for economic or
contractual considerations relating to the financial difficulties of the debtor.
2. Measurement of expected credit loss
The key parameters of expected credit loss measurement include default probability, default loss
rate, and default risk exposure.The Company takes into account the quantitative analysis and
forward-looking information of historical statistical data (such as counterparty ratings, guarantee
methods, collateral categories, repayment methods, etc.), and establishes a model of default
probability, default loss rated and default risk exposure.
3. The reconciliation table for the beginning balance and ending balance of provision for loss on
financial instruments can be found in the remarks of "8. Other receivables", "6. Accounts
receivable financing", "5. Accounts receivable", "VII. Notes to the Items in the Consolidated
Financial Statements", "Section X Financial Report" of this report.
4. Credit risk exposure and concentration
The credit risk of the Company mainly comes from cash and banck balances and accounts
receivable.To control the said risks, the Company has taken the following measures.
(1) Cash and bank balances
The Company deposits bank deposits and other cash and bank balances with financial institutions
with higher credit ratings, so the credit risk is relatively low.
2) Accounts receivable
225 / 262
The Company continues to conduct credit assessments on customers who carry on transactions in
the form of credit.Based on the credit evaluation results, the Company chooses to carry out
transactions with recognized and creditworthy customers and monitors their accounts receivable
balances to ensure that it does not face significant bad debt risks.
Since the Company only carries out transactions with recognized and reputable third parties, no
collateral is required.Credit risk is managed centrally on a customer basis.As of June 30, 2023, the
Company has certain credit concentration risks, with 53.08% of the accounts receivable
(December 31, 2022: 54.03%) comcentrating on the top five customers in terms of balances.The
Company does not hold any collateral or other credit enhancements for the balance of accounts
receivable.
The maximum credit risk that the Company is exposed to is the carrying amount of each financial
asset in the balance sheet.
(II) Liquidity risk
Liquidity risk refers to a risk that the Company suffers funds shortage in performing the
obligations of settlement in cash or other financial assets.Liquidity risk can arise from the inability
to sell financial assets at fair value as soon as possible, or due to the other party's inability to repay
its contractual obligations, or arising from early maturing debts, or due to the inability to generate
expected cash flows.
To control the risk, the Company comprehensively utilizes various financing methods such as bill
settlement and bank borrowing, and adopts a combination of long-term and short-term financing
methods to optimize the financing structure and maintain a balance between financing
sustainability and flexibility.The Company has obtained bank credit lines from multiple
commercial banks to meet working capital needs and capital expenditures.
Financial liabilities classified by remaining maturity date
Ending amount
Item Undiscounted
Book value Within 1 year 1-3 years Above 3 years
contract amount
Bank loans 34,112,114,674.00 35,581,320,061.78 28,332,108,166.36 6,299,120,985.37 950,090,910.05
Held-for-trading
financial 82,840,808.91 82,840,808.91 82,840,808.91
liabilities
Notes payable 10,226,193,813.10 10,226,193,813.10 10,226,193,813.10
Accounts payable 15,755,211,098.30 15,755,211,098.30 15,755,211,098.30
Non-current
liabilities
2,011,589,609.97 2,038,397,466.93 2,038,397,466.93
maturing within
one year
Other payables 4,411,853,636.24 4,437,086,947.27 4,437,086,947.27
Other current
1,426,394,022.07 1,444,915,500.00 1,444,915,500.00
liabilities
Bonds payable 6,467,040,778.52 8,077,510,760.98 30,311,718.05 159,698,618.93 7,887,500,424.00
226 / 262
Lease liabilities 71,707,965.22 78,215,562.66 72,936,014.38 5,279,548.28
Long-term
5,723,208,619.59 6,053,498,551.82 4,328,046,276.66 1,725,452,275.16
payables
Sub-total 80,288,155,025.92 83,775,190,571.75 62,347,065,518.91 10,859,801,895.34 10,568,323,157.49
(Continued)
Endding amount of the last year
Item Undiscounted
Book value Within 1 year 1-3 years Above 3 years
contract amount
Bank loans 27,933,432,060.89 30,390,754,814.60 17,028,532,051.85 7,410,668,383.51 5,951,554,379.24
Held-for-tradin
g financial 40,024,798.40 40,024,798.40 40,024,798.40
liabilities
Notes payable 10,782,231,308.54 10,782,231,308.54 10,782,231,308.54
Accounts
14,610,891,201.30 14,610,891,201.30 14,610,891,201.30
payable
Non-current
liabilities
1,772,100,686.44 2,045,716,316.30 2,045,716,316.30
maturing within
one year
Other payables 4,612,710,195.77 4,643,101,465.63 4,643,101,465.63
Other current
1,311,482,728.68 1,654,602,779.88 1,654,602,779.88
liabilities
Bonds payable 6,323,799,832.42 8,162,727,162.57 682,130,867.86 7,480,596,294.71
Lease liabilities 57,070,601.81 60,294,665.46 52,382,919.92 7,911,745.54
Long-term
5,155,378,248.88 5,516,949,998.39 2,541,468,653.90 2,975,481,344.49
payables
Sub-total 72,599,121,663.13 77,907,294,511.07 50,805,099,921.90 10,686,650,825.19 16,415,543,763.98
(III) Market risks

Market risk refers to the risk that fair value or future cash flows of financial instruments fluctuate
due to variations in market prices.Market risks mainly include interest rate risk and foreign
exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk of fluctuation in the fair value or future cash flows of financial
instruments due to changes in market interest rate.The financial instruments with fixed interest
rate made the Company exposed to the fair value interest rate risks, and the financial instruments
with floating interest rate made the Company exposed to the cash flow interest rate risks.The
Company determines the ratio of fixed rate and floating rate financial instruments based on market
environment, and maintains an appropriate portfolio of financial instruments by regular review
and monitoring.The cash flow interest rate risk faced by the Company is mainly related to bank
loans with floating interest rates.
227 / 262
As of June 30, 2023, the amount of Company's bank loans with floating interest rates is RMB
7,509,151,676.52 (December 31, 2022: RMB 11,942,119,524.41). Assuming that other variables
remain unchanged and that interest rates rise/fall by 50 basis points, it will result in a
decrease/increase of RMB 37.5458 million in the shareholders' equity of the Company (December
31, 2022: decrease/increase of RMB 59.7106 million) and a decrease/increase of RMB 37.5458
million in net profit (2022: decrease/increase of RMB 59.7106 million).
2. Foreign exchange risk
Foreign exchange risks refer to fluctuation risks of fair value or future cash flows of financial
instruments due to changes in foreign exchange rates.The risk of exchange rate fluctuations faced
by the Company is mainly related to the monetary assets and liabilities in foreign currencies.For
assets and liabilities in foreign currencies, if there is a short-term imbalance, the Company will
buy and sell foreign currencies at market exchange rates when necessary to ensure that the net risk
exposure is maintained at an acceptable level.
The situation of monetary assets and liabilities in foreign currencies at the end of the period is
detailed in Note V (IV) 2 of these financial statements.
XI. Disclosure of Fair Value

1. Ending fair value of the assets and liabilities measured at fair value
Ending fair value
First level of fair Second level of Third level of fair
Item
value fair value value Total
measurement measurement measurement
I. Continuous fair value
measurement
(I) Held-for-trading
922,943,639.96 269,558,655.09 1,192,502,295.05
financial assets
1. Financial assets
measured at fair value
922,943,639.96 269,558,655.09 1,192,502,295.05
through current profit or
loss
(1) Debt instrument
investments
(2) Equity instrument
investments
(3) Derivative financial
922,943,639.96 61,853,332.00 984,796,971.96
assets
(4) Financial products 207,705,323.09 207,705,323.09
2. Financial asset
designated to be
228 / 262
loss
(1) Debt instrument

investment
(2) Equity instrument
investment
(II) Other debt
investments
(III) Other equity
42,647,182.81 42,647,182.81
instrument investments
(IV) Investment real
estates
1. Right to use the land
for lease
2. Leased buildings
3. Land use right held for
transfer upon
appreciation
(V) Biological assets
1. Consumptive
biological assets
2. Productive biological
assets
(VI) Receivables
2,158,160,473.89 2,158,160,473.89
financing
(VII) Other non-current
547,046,515.08 547,046,515.08
financial assets
Total amount of assets
measured at fair value 922,943,639.96 3,017,412,826.87 3,940,356,466.83
on a continuous basis
(VI) Held-for-trading
497,307.85 82,343,501.06 82,840,808.91
1. Financial liabilities
497,307.85 82,343,501.06 82,840,808.91
loss
Including: traded bonds
issued
Derivative
497,307.85 82,343,501.06 82,840,808.91
Others
2. Financial liabilities
designated to be
229 / 262

loss
Total amount of
liabilities measured at
497,307.85 82,343,501.06 82,840,808.91
fair value on a
continuous basis
II. Non-continuous fair
value measurement
(I) Held-for-sale assets
Total amount of assets
not on a continuous
basis
Total amount of
liabilities measured at
fair value not on a
continuous basis
2. Basis for determining the market price for the items subject to the first level of
continuous and non-continuous fair value measurement
Fair value at the

Item Valuation techniques
end of the period
Derivative financial assets 922,943,639.96

Futures contracts are valued at fair value based on
the settlement price determined by the futures
liabilities - derivative financial 497,307.85 exchange, and hedged items are valued at fair value
based on the spot market settlement price.
liabilities
3. Valuation techniques adopted and qualitative and quantitative information of

important parameters for the items subject to the second level of continuous and
non-continuous fair value measurement
4. Valuation techniques adopted and qualitative and quantitative information of

important parameters for the items subject to the third level of continuous and
non-continuous fair value measurement
Fair value at the
Item Valuation techniques
end of the period
230 / 262
Accrued fair value of a forward foreign exchange settlement and sales

contract = the amount of foreign currency sold * (the forward exchange
rate agreed in the contract - the forward exchange rate on the approximate
closing date of the forward foreign exchange settlement and sales contract
at the end of the period )/(1 + discount rate * the number of days from the
balance sheet date to the closing date/360). Accrued fair value of a foreign
Held-for-trading exchange trading swap transaction = the amount of foreign currency
financial assets - purchased in the near end as agreed in the contract * (the far end exchange
61,853,332.00
derivative financial rate as agreed in the contract - the forward exchange rate on the
assets approximate closing date of the swap transaction at the end of the period)
* the exchange rate of foreign currency to RMB on the balance sheet
date/(1 + discount rate * the number of days from the balance sheet date to
the closing date/360). Accrued fair value of a foreign exchange single put
option contract = option fee income as agreed in the contract * number of
days from the trading date to the balance sheet date/number of days from
the trading date to the closing date.
Short-term bank To be determined according to the principal plus expected income as of
207,705,323.09
financial products the end of the period
Other equity The difference between the fair value and book value of the investee Inner
instrument 42,647,182.81 Mongolia Sinuo, HANAQ Company, and Shenzhen Finiji is relatively
investments small, so its book value is adopted as its fair value
Receivables The difference between fair value and book value is small, so its book
2,158,160,473.89
financing value is used as its fair value
Other non-current The difference between fair value and book value is small, so its book
547,046,515.08
financial assets value is used as its fair value
Accrued fair value of a forward foreign exchange settlement and sales
contract = the amount of foreign currency sold * (the forward exchange
rate agreed in the contract - the forward exchange rate on the approximate
closing date of the forward foreign exchange settlement and sales contract
at the end of the period )/(1 + discount rate * the number of days from the
balance sheet date to the closing date/360). Accrued fair value of a foreign
Held-for-trading exchange trading swap transaction = the amount of foreign currency
financial liabilities purchased in the near end as agreed in the contract * (the far end exchange
82,343,501.06
- derivative rate as agreed in the contract - the forward exchange rate on the
financial liabilities approximate closing date of the swap transaction at the end of the period)
* the exchange rate of foreign currency to RMB on the balance sheet
date/(1 + discount rate * the number of days from the balance sheet date to
the closing date/360). Accrued fair value of a foreign exchange single put
option contract = option fee income as agreed in the contract * number of
days from the trading date to the balance sheet date/number of days from
the trading date to the closing date.
231 / 262
5. Adjustment between book values at beginning and ending and sensitivity analysis of
unobservable parameters for the items subject to the third level of continuous fair value
measurement
6. Conversion causes and policy to determine the conversion time point in case of
conversion between levels in current period for the items subject to continuous fair
value measurement
7. Changes in valuation techniques in the current period and the reason therefor
8. Fair value of the financial assets and liabilities not measured at fair value
9. Others
XII. Related Party and Related-party Transactions

1. Information of the parent company of the Company
The controlling shareholder of the Company is Huayou Holdings, and the ultimate controller of
the Company is Chen Xuehua.
2. Information of subsidiaries of the Company

Please refer to Note for the details of the subsidiaries of the Company.
For details of the Company’s subsidiaries, please refer to “IX. Equity in other entities”, “Section X
Financial Report” of this report.
3. Information of joint ventures and associates of the Company

Please refer to Note for the details of major joint ventures and associates of the Company.
Information of other joint ventures and associates that have related party transactions with the
Company in the current period or had related party transactions with the Company in the previous
period and generated balances:
Name of joint ventures or associates Relationship with the Company
PT Alam A joint venture
232 / 262
IWIP An associate
Puhua Company An associate
Leyou Company An associate
Zhejiang Times Lithium-ion Battery The associates Quzhou Xinhua and Quzhou Anyou
Materials Co., Ltd respectively hold 35.30% and 17.88% equity of
Times Lithium-ion Battery, and are the first and
second largest shareholders of Times Lithium-ion
Battery, respectively.
NEWSTRIDE TECHNOLOGY An associate
Veinstone An associate
PT.WEDA BAY ENERGI (“WBE A subsidiary of the associate Veinstone
Company”)
Indonesia Huatuo An associate
Guangxi Shidai Huineng Lithium-ion A subsidiary of the associate Guangxi Times
Battery Material Technology Co., Ltd Lithium-ion Battery New Materials Industry
Development Fund Partnership Enterprise (Limited
Partnership)joint venture
Yulin Shidai Juneng Thermal Energy A subsidiary of the associate Guangxi Times
Co., Ltd Lithium-ion Battery New Materials Industry
Yulin Times Lvshui Environmental A subsidiary of the associate Guangxi Times
Protection Technology Co., Ltd Lithium-ion Battery New Materials Industry
Yulin Times Tianlan Gas Co., Ltd A subsidiary of the associate Guangxi Times
Lithium-ion Battery New Materials Industry
Ningbo Ruihua An associate
LG-HY BCM An associate
Jintang B&M An associate
Other remarks:
4. Other related parties

Name of other related parties Relationship with the Company
A close family member of Chen Xuehua, the ultimate
Qiu Jinhua
controller
Huayou Holdings The controlling shareholder
Zhejiang Beilinde Enterprise A joint venture of Huayou Holdings, the controlling
Management Co., Ltd. (“Beilinde shareholder
233 / 262
Company”)
Guangxi Huayou Construction Operation Controlled by Huayou Holdings, the controlling
Management Co., Ltd shareholder
Guangxi Times New Energy Lithium-ion Controlled by Huayou Holdings, the controlling
Battery Material Technology Co., Ltd shareholder
Inner Mongolia Shengfan Technology Controlled by Huayou Holdings, the controlling
New Energy Co., Ltd shareholder
Yunnan Youtian New Energy Controlled by Huayou Holdings, the controlling
Technology Co., Ltd shareholder
Zhejiang Youshan New Materials Co., Controlled by Huayou Holdings, the controlling
Ltd shareholder
Hubei Youxing New Energy Technology Controlled by Huayou Holdings, the controlling
Co., Ltd shareholder
Guangxi Huachuang New Materials Controlled by Huayou Holdings, the controlling
Copper Foil Co., Ltd. (“Guangxi shareholder
Huachuang”)
Controlled by Huayou Holdings, the controlling
Ruby Mining Hongkong Limited
shareholder
Other remarks:
None
5. Related-party transactions
(1) Related-party transactions for purchasing/selling goods or rendering/accepting labor
services
Details of related party transactions for purchasing goods or accepting labor service
Whether the Amount
Transaction
Contents of Amount incurred transaction incurred in
limit
Related party related-party in the current limit is the
approved (if
transaction period exceeded (if previous
applicable)
applicable) period
Associates Purchase of
and their goods 374,762,880.94
subsidiaries
Associates Acceptance of 192,546.96
and their labor services 65,261,775.26
subsidiaries
Other related Purchase of 213,716.81
769.91
parties goods
Total 440,025,426.11 406,263.77
234 / 262
Table of sales of goods/rendering of labor services

Contents of
Related party related-party
transaction
Associates and their Sales of goods
1,144,160,380.11 728,474,162.94
subsidiaries
Associates and their Rendering of labor
143,941,428.17 103,406,515.60
subsidiaries services
Other related parties Sales of goods 191,679,519.33 88,230.85
Other related parties Rendering of labor
18,900,803.84 93,912.73
services
Total 1,498,682,131.45 832,062,822.12
Details of related-party transactions for purchasing/selling goods or rendering/accepting labor service

(2) Related party trusteeship/contracting

Details of trusteeship/contracting where the Company is the trustee/contractor:
Remark to related party trusteeship/contracting
Details of trusteeship/contracting where the Company is the trustor/contractee:

Remarks to related party management/outsourcing
(3) Related party leasing

Where the Company is the lessor:
Lease income recognized Lease income recognized in
Name of lessee Type of leased asset
in the current period the previous period
Other related Buildings and 27,522.94 22,935.78
parties constructions
Total 27,522.94 22,935.78
Where the Company is the lessee:

Remark to related party leasing:
235 / 262
(4) Related-party guarantee

Where the Company is the guarantor:
Where the Company is the guaranteed party:

Amount of Starting date of Maturity date of Guarantee fulfilled or
Guarantor
guarantee guarantee guarantee not
Chen Xuehua 958,000,000.00 2020.7.1 2026.2.23 No
Chen Xuehua, 50,000,000.00 2023.2.28 2024.2.27 No
Qiu Jinhua
Chen Xuehua, 25,141,733.51 2023.3.30 2023.9.26 No
Qiu Jinhua
Chen Xuehua, 393,971,540.08 2023.1.12 2023.11.8 No
Qiu Jinhua
Chen Xuehua, 400,000,000.00 2022.12.30 2023.12.18 No
Qiu Jinhua
Chen Xuehua, 380,000,000.00 2023.5.19 2024.5.18 No
Qiu Jinhua
Chen Xuehua 241,000,000.00 2023.2.2 2023.9.22 No
Chen Xuehua 33,000,000.00 2023.6.21 2024.6.14 No
Chen Xuehua 300,000,000.00 2023.5.16 2024.5.16 No
Chen Xuehua 240,000,000.00 2022.11.2 2023.8.15 No
Chen Xuehua 100,000,000.00 2023.4.23 2024.3.4 No
Chen Xuehua 63,860,000.00 2023.1.12 2024.3.2 No
Chen Xuehua 176,000,000.00 2022.9.29 2023.10.13 No
Chen Xuehua 258,700,000.00 2023.3.20 2024.3.14 No
Chen Xuehua 144,280,789.51 2023.1.3 2023.12.13 No
Chen Xuehua 42,500,000.00 2022.9.28 2023.9.3 No
Chen Xuehua 520,900,000.00 2021.7.16 2024.7.29 No
Chen Xuehua, 400,000,000.00 2023.1.6 2023.8.14 No
Huayou
Holdings
Chen Xuehua, 293,670,000.00 2022.7.29 2024.6.7 No
Huayou
Holdings
Chen Xuehua 1,335,000,000.00 2022.7.29 2028.9.21 No
Chen Xuehua 48,172,066.87 2023.4.21 2023.7.20 No
Chen Xuehua 45,507,742.21 2023.2.6 2023.11.2 No
Chen Xuehua, 300,000,000.00 2023.1.13 2024.5.9 No
Qiu Jinhua
236 / 262
Chen Xuehua 149,100,000.00 2022.9.14 2023.10.10 No

Chen Xuehua, 100,000,000.00 2022.8.15 2023.11.10 No
Qiu Jinhua
Chen Xuehua, 6,431,886.02 2023.5.17 2023.8.15 No
Qiu Jinhua
Chen Xuehua, 200,000.00 2022.8.10 2024.7.31 No
Qiu Jinhua
Chen Xuehua, 248,194,380.06 2023.1.4 2023.12.28 No
Qiu Jinhua
Chen Xuehua, 99,500,000.00 2022.12.30 2023.12.15 No
Qiu Jinhua
Chen Xuehua 290,500,000.00 2023.6.20 2024.3.16 No
Chen Xuehua 168,750,000.00 2022.9.29 2024.4.21 No
Chen Xuehua 330,000,000.00 2023.4.18 2023.12.21 No
Chen Xuehua 297,000,000.00 2023.2.16 2024.4.10 No
Chen Xuehua, 120,000,000.00 2023.1.6 2024.1.5 No
Qiu Jinhua
Chen Xuehua 273,000,000.00 2022.7.28 2024.1.18 No
Chen Xuehua, 30,000,000.00 2022.12.30 2023.9.28 No
Qiu Jinhua
Chen Xuehua, 10,000,000.00 2022.10.20 2023.10.12 No
Qiu Jinhua
Chen Xuehua, 59,500,000.00 2023.1.3 2023.8.30 No
Qiu Jinhua
Huayou 242,000,000.00 2022.11.16 2024.6.26 No
Holdings
Huayou 58,154,760.00 2023.5.10 2023.11.30 No
Holdings
Huayou 701,740,000.00 2021.4.14 2026.4.8 No
Holdings
Huayou 46,007,388.50 2023.1.18 2023.12.26 No
Holdings
Huayou 133,000,000.00 2023.2.22 2023.9.29 No
Holdings
Huayou 100,000,000.00 2022.11.29 2024.6.13 No
Holdings
Huayou 289,999,998.00 2023.1.13 2023.12.25 No
Holdings
Huayou 141,666,666.67 2021.9.17 2024.10.18 No
Holdings
Huayou 220,000,000.00 2022.5.12 2025.5.11 No
Holdings
Huayou 150,057,292.59 2022.1.7 2025.1.7 No
237 / 262
Holdings
Huayou 281,329,189.50 2023.1.13 2023.8.23 No
Holdings
Huayou 483,476,188.22 2022.8.4 2026.12.20 No
Holdings
Chen Xuehua 1,236,334,380.00 2021.10.29 2029.3.21 No
Chen Xuehua 852,644,400.00 2021.10.29 2029.3.21 No
Chen Xuehua 426,322,200.00 2021.10.29 2029.3.21 No
Chen Xuehua 426,322,200.00 2021.10.29 2029.3.21 No
Chen Xuehua 213,161,100.00 2021.10.29 2029.3.21 No
Chen Xuehua 85,264,440.00 2021.10.29 2029.3.21 No
Chen Xuehua 295,714,419.84 2022.6.30 2026.6.28 No
Chen Xuehua 269,875,000.00 2022.10.14 2024.6.1 No
Chen Xuehua 93,000,000.00 2028.12.26 2024.5.24 No
Chen Xuehua, 230,000,000.00 2022.12.29 2024.2.26 No
Huayou
Holdings
Huayou 199,999,999.80 2023.2.20 2023.10.27 No
Holdings
Huayou 30,000,000.00 2023.2.23 2024.2.20 No
Holdings
Huayou 39,384,461.12 2023.4.21 2023.11.25 No
Holdings
Huayou 50,000,000.00 2023.6.29 2023.12.29 No
Holdings
Remarks to related-party guarantee
(5) Fund lending/borrowing to/from related parties

Amount of
Related party Starting date Maturity date Remark
lending/borrowing
Borrowing
Huayou Holdings 32,725,000.00 2022/5/19 2023/5/15
Huayou Holdings 28,050,000.00 2022/11/22 2023/5/15
Ruby Mining 11,543,215.50 2023/5/23 2023/11/23
NEWSTRIDE 2020/12/31 2024/12/30
10,709,093.57
TECHNOLOGY
NEWSTRIDE 2021/4/13 2024/4/12
5,354,546.78
TECHNOLOGY
NEWSTRIDE 2022/6/27 2024/6/27
182,123,356.03
TECHNOLOGY
238 / 262
Amount of
lending/borrowing
NEWSTRIDE 2022/6/1 2024/6/1
37,068,338.48
TECHNOLOGY
NEWSTRIDE 2022/7/11 2024/7/11
61,780,564.13
TECHNOLOGY
NEWSTRIDE 2022/8/1 2024/8/1
49,424,451.31
TECHNOLOGY
NEWSTRIDE 2022/8/8 2024/8/8
9,884,890.26
TECHNOLOGY
NEWSTRIDE 2022/9/1 2024/8/31
61,780,564.13
TECHNOLOGY
NEWSTRIDE 2022/10/11 2024/10/11
37,068,338.48
TECHNOLOGY
NEWSTRIDE 2022/10/31 2024/10/31
49,424,451.31
TECHNOLOGY
NEWSTRIDE 2022/12/13 2024/12/13
34,905,947.56
TECHNOLOGY
NEWSTRIDE
106,262,570.31 2023/1/5 2025/1/4
TECHNOLOGY
Lending
IWIP 41,187,060.00 2019/6/10 2023/6/27
IWIP 13,006,440.00 2019/7/5 2023/6/27
IWIP 12,934,182.00 2019/8/14 2023/6/27
IWIP 12,934,182.00 2019/11/25 2023/6/27
IWIP 25,868,364.00 2019/12/26 2023/6/27
IWIP 12,934,182.00 2020/1/7 2023/6/27
IWIP 8,670,960.00 2020/2/17 2023/6/27
IWIP 4,335,480.00 2020/3/10 2023/6/27
IWIP 4,335,480.00 2020/4/7 2023/6/27
IWIP 4,335,480.00 2020/4/28 2023/6/27
IWIP 4,335,480.00 2020/5/25 2023/6/27
IWIP 14,931,393.12 2020/10/16 2023/6/27
IWIP 14,931,393.12 2020/11/9 2023/6/27
IWIP 14,931,393.12 2020/11/13 2023/6/27
IWIP 4,977,131.04 2020/12/22 2023/6/27
IWIP 6,084,123.60 2020/7/2 2023/6/27
IWIP 200,732,724.00 2023/6/27 2028/6/26
Veinstone 104,797,771.72 2019/12/2 2023/6/27
Veinstone 13,474,122.68 2020/3/30 2023/6/27
Veinstone 118,271,894.40 2023/6/27 2028/6/26
Indonesia Huatuo 3,612,900.00 2020/2/27 2023/6/26
Indonesia Huatuo 3,612,900.00 2023/6/27 2028/6/26
239 / 262
Amount of
lending/borrowing
PT. ALAM 7,948,380.00 2022/1/21 2024/1/20
(6) Asset transfer and debt restructuring of related parties

Contents of related Amount incurred in the Amount incurred in
Related party
party transaction current period the previous period
Associates and their Sale of long-term
673,575.31
subsidiaries assets
Other related parties Sale of long-term
905,789.39
assets
Other related parties Sale of equity in
0.00
subsidiaries [Remark]
[Remark]: According to the Equity Transfer Agreement signed between Huayou Recycling and
Zhejiang Youshan New Materials Co., Ltd. in May 2023, Huayou Recycling transferred 100% of
its equity in Resource Recycling to Zhejiang Youshan New Materials Co., Ltd. for a consideration
of zero.
(7) Compensation of key management personnel

Monetary unit: Ten Thousand Yuan Currency: RMB
Amount incurred in the current Amount incurred in the
Item
Compensation of key
3,724.88 3,349.35
management personnel
(8). Other related-party transactions

6. Receivable from and payables to related parties

(1) Receivables
Related
Item Provision for Provision for
party Book balance Book balance
bad debt bad debt
Other
Accounts
related 7,681,462.85 384,073.14 49,556,015.43 2,477,800.77
receivable
parties
240 / 262
Associates
Accounts
and their 466,573,641.76 23,328,682.09 586,449,978.29 29,322,498.92
receivable
subsidiaries
Other Joint
7,948,380.00 158,967.60 7,661,060.00 383,053.00
receivables venture
Other
Other
related 19,348.13 967.41
receivables
parties
Associates
Other
and their 7,462,359.81 3,808,800.69 3,535,076.39 1,743,788.82
receivables
subsidiaries
Associates
Long term
and their 319,004,568.88 307,473,160.80
receivables
subsidiaries
Other
Receivables
related 117,847,800.73
financing
parties
Associates
Receivables
and their 92,706,271.94 72,630,939.25
financing
subsidiaries
Total 1,019,243,834.10 27,681,490.93 1,027,306,230.16 33,927,141.51
(2) Payables
Item Related party Ending book balance Beginning book balance
Associates and their 593,088,595.80 1,765,483,412.70
Accounts payable
subsidiaries
Accounts payable Other related parties 60,604.52
Associates and their 646,224,248.00 580,878,936.42
Other payables
subsidiaries
Other payables Other related parties 11,615,953.58
Associates and their 76,022,034.73
Contract liabilities
subsidiaries
Contract liabilities Other related parties 711,374.26
Total 1,327,722,810.98 2,346,362,349.12
7. Commitments of related parties

8. Others
241 / 262
XIII Share-based payment

1. Overview of share-based payment
Unit: share Currency: RMB
Total amount of equity instruments granted by
the Company in the current period
Total amount of equity instruments exercised by 56,940
the Company in the current period
Total amount of equity instruments expired in 214,113
the current period
Range of exercise price of outstanding stock
options issued by the Company at the end of the
period and the remaining term of the contract
The exercise price of the restricted shares
involved in the first grant in 2021 is
RMB37.89/share, and they shall be unlocked
in 3 years from the completion date of grant
registration until 2024; the exercise price of
the restricted shares involved in the first grant
of the reserved part in 2021 is
the restricted shares involved in the second
Range of exercise price of outstanding other
grant of the reserved part of the restricted
equity instruments issued by the Company at the
shares in 2021 is RMB58.07/share, and they
end of the period and the remaining term of the
shall be unlocked in 3 years from the
contract
completion date of grant registration until
2025; the exercise price of the restricted
shares involved in the first grant in 2022 is
the restricted shares involved in the first grant
of the reserved part in 2022 is
registration until 2025.
Other remarks:
None
2. Equity-settled share-based payment
242 / 262
Method of determining the fair value of equity According to the closing price of the
instruments on the grant date Company’s stock on the grant date
To be determined based on the amount of
restricted shares granted, taking into account
the changes in the number of employees with
Basis for determining the amount of exercisable exercisable rights on each balance sheet date,
equity instruments the Company’s performance evaluation
indicators for each exercisable year, and the
individual performance evaluation of
incentive targets.
Reasons for significant difference between the None
estimate in this period and prior period
Accumulated amount of equity-settled 735,870,209.82
share-based payment in capital reserve
Total expenses recognized for equity-settled 236,838,411.21
share-based payment in the current period
Other remarks:
None
3. Cash-settled share-based payment

4. Modification and termination of share-based payment

5. Others
XIV Commitments and Contingencies

1. Major commitments
Major commitments on the balance sheet date and their nature and amount
Huayue Company, a subsidiary of the Company, as the borrower, entered into a USD760,000,000
Loan Agreement with Zhejiang Branch of the Export-Import Bank of China (appointed leading
bank and lender), Tongxing Sub-branch of China CITIC Bank (co-leading bank and lender),
Jakarta Branch of Bank of China (Hong Kong) Limited (domestic guarantee agent, domestic loan
agent and domestic opening bank), Tongxiang Sub-branch of Agricultural Bank of China (lender),
Shanghai Pilot Free Trade Zone Branch of China Minsheng Bank (lender), Hangzhou Branch of
Ping An Bank (lender) and Hangzhou Branch of China Everbright Bank (lender) on September 30,
2021.
In accordance with the Account Pledge Agreement signed between Huayue Company and Jakarta
Branch of Bank of China (Hong Kong) Limited, Huayue Company shall pledge some of its
243 / 262
accounts opened in the bank to the bank as security for the USD760,000,000 Loan Agreement. In
view of the fact that Huayue Company has made external payments in accordance with the
payment priority order stipulated in the loan agreement, the ending balance of the pledged
accounts is RMB 32,484,997.37.
2. Contingencies
(1) Major contingencies on the balance sheet date
As of June 30, 2023, the progress of the land dispute between GENILAND and the subsidiary
CDM Company is as follows:
GENILAND sued CDM Company for encroachment of its long-term rental concession (land) in
the mining area by Title 527, claiming for compensation of damages of USD 22.65 million from
CDM Company. According to the judgment made by a court of D. R. Congo, CDM Company
shall pay GENILAND damages and penalties totaling USD 9,935,084. In response to the
judgment, CDM Company filed an objection and appeal process. The judgment is currently in a
state of suspension. In accordance with the Legal Opinion on the Rights and Interests of Zhejiang
Huayou Cobalt Co., Ltd. in the Democratic Republic of Congo issued by lawyer Edmond
Cibamba Diata from Emery Mukendi Wafwana & Associés in August 2020, the claim for
compensation of damages made by GENILAND for CDM Company’s illegal occupation of its
long-term rental concession (land) is not supported by law on the following grounds:
Pursuant to Article 64 of the 2002 Mining Code, a mining warrant entitles its owner to exclusively
carry out activities of exploration, development, construction and exploitation of minerals
specified in the mining warrant within the mining area specified in the mining warrant and for the
term of the mining warrant. As the owner of Title 527, CDM Company has the right to enter the
mining area and carry out mining activities. Since GENILAND acquired the long-term rental
concession (land) on May 25, 2012, later than the time when CDM Company was granted
concession of Title 527, GENILAND shall not regard CDM Company’s mining activities or
construction of installations and infrastructure necessary for mining development in the mining
area where it legally holds the mining warrant as illegal activities, nor shall it claim any
compensation on such grounds.
GENILAND’s claims seek compensation of damages of USD 22.65 million from CDM Company,
but according to Article 281 of the Mining Code of D. R. Congo, the compensation involved in a
dispute between a mining right holder and a land use right holder in respect of land occupation
shall be the value of the land during the period of occupation plus fifty percent (50%). According
to the Legal Opinion issued by the lawyer of D. R. Congo in September 2020, through the
investigation at the land bureau where the land involved is located, it is confirmed that the land
price in the area where the disputed land is located is USD500-800/hectare and the disputed land
area is 26.83 hectares. The maximum compensation amount shall not exceed USD 32,196.00
according to the above statutory compensation standard. Therefore, the amount of compensation
proposed in GENILAND’s claims is obviously excessive and not supported by law.
In summary, the Company believes that it shall not be liable for compensation claimed in the
above lawsuit cases, so no estimated liabilities have been accrued.
244 / 262
(2) Explanation shall also be given even if there is no major contingency to be disclosed by
the Company
3. Others
XV Post Balance Sheet Events

1. Major non-adjusting events
2. Profit distribution
3. Sales return
4. Description of other post-balance-sheet events

XVI Other Major Events

1. Correction of accounting errors in the previous period
(1) Retrospective restatement method
(2) Prospective application method

2. Debt restructuring
3. Replacement of assets
(1) Replacement of non-monetary assets
(2) Replacement of other assets

245 / 262
4. Pension plan
5. Discontinued operation
6. Segment information
(1) Determination basis and accounting policies of the reportable segment
(2) Financial information of the reportable segment

(3) Please explain the reason in case of no reportable segment or inability to disclose the
total assets and total liabilities of each reportable segment.
(4) Other remarks:

7. Other major transactions and events impacting the investor’s decision-making

8. Others
XVII Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
Within 1 year
Within 1 year 277,484,484.06
Sub-total 277,484,484.06
1 to 2 years 25,204.48
2 to 3 years
More than 3 years 463,014.77
3 to 4 years
246 / 262
4 to 5 years
More than 5 years
Total 277,972,703.31

Book balance Provision for bad debt Book balance Provision for bad debt
Category Proportion Book Proportion Book
Proportion Proportion
Amount Amount of provision value Amount Amount of provision value
(%) (%)
(%) (%)
Provision for
bad debt made
402,048.
on an 402,048.00 0.14 402,048.00 100.00 402,048.00 0.14 100.00
00
individual
basis
Including:
Account
receivables
with
individually
insignificant 402,048.
402,048.00 0.14 402,048.00 100.00 402,048.00 0.14 100.00
amount but 00
subject to
individual
provision for
bad debts
Provision for
450,63
bad debt made 275,731, 454,917,235 4,286,19
277,570,655.31 99.86 1,838,900.11 0.66 163.66 0.94 1,045.
on a portfolio 755.20 .88 0.59
29
basis
Including:
Portfolio of 35,544,020.10 12.79 1,838,900.11 5.17 33,705,1 84,565,443. 30.42 4,286,19 5.07 80,279
accounts 19.99 23 0.59 ,252.6
receivable 4
from external
customers
247 / 262
Receivables 133.23 370,35

from related 1,792.
parties within 242,026, 370,351,792 65
242,026,635.21 87.07
the 635.21 .65
consolidation
scope
277,972,703.31 / 2,240,948.11 / / 4,688,23 / 450,63
275,731, 455,319,283
Total 8.59 1,045.
755.20 .88
29
Provision for bad debt made on an individual basis:

Monetary unit: Yuan
Currency: RMB
Ending balance
Name Provision for Proportion of Reason for
Book balance
bad debt provision (%) making provision
Other companies 402,048.00 402,048.00 100 The company is
facing
operational
difficulties and it
is expected that
the debt cannot
be recovered.
Total 402,048.00 402,048.00 100 /
Remark to the provision for bad debt made on an individual basis:
Provision for bad debt made on a portfolio basis:

Items with provision made on a portfolio basis: aging portfolio
Monetary unit: Yuan
Currency: RMB
Ending balance
Name Proportion of
Accounts receivable Provision for bad debt
provision (%)
Within 1 year 35,457,848.85 1,772,892.44 5.00
1 to 2 years 25,204.48 5,040.90 20.00
2 to 3 years
More than 3 years 60,966.77 60,966.77 100.00
Total 35,544,020.10 1,838,900.11 5.17
Recognition criteria and description of the provision for bad debts made on a portfolio basis:
248 / 262
In case provision for bad debt is made for notes receivable according to the general model of
expected credit loss, please make disclosure in line with the disclosure method of other
receivables:

Amount of change in the current period
Beginning Recovered Written-off Ending
Category Provision Other
balance or or charged balance
made change
reversed off
Account
receivables
with
provision
for bad 4,286,190.59 -2,447,290.48 1,838,900.11
debts made
on the basis
of aging
portfolio
Account
receivables
with
individually
insignificant
amount but 402,048.00 402,048.00
subject to
individual
provision
for bad
debts
Total 4,688,238.59 -2,447,290.48 2,240,948.11
(4) Accounts receivable actually written off in the current period

□Applicable □√Not applicable
(5) Top 5 accounts receivable in terms of the ending balance presented by debtors
249 / 262
(6) Accounts receivable de-recognized due to transfer of financial assets

(7) Amount of assets or liabilities arising from transfer of accounts receivable and continued
involvement
Other remarks:
The total amount of top 5 ending balances of accounts receivable is RMB 200,455,888.23,
accounting for 42.50% of the total ending balance of accounts receivable, and the corresponding
provision for bad debts is RMB 952,334.95.
Presented by items
Dividends receivable 385,615,050.00 198,313,600.00
Other receivables 8,276,287,373.95 5,811,419,375.91
Total 8,661,902,423.95 6,009,732,975.91
Other remarks:
(1) Classification of interests receivable
(2) Significant overdue interests


Other remarks:
(4) Dividends receivable
250 / 262
Item (or investee) Ending balance Beginning balance

Like Cobalt Nickel 95,000,000.00
Huayou Import and Export 150,000,000.00
Resource Recycling 20,615,050.00
Huayou Recycling 120,000,000.00
Quzhou Huayou 198,313,600.00
Total 385,615,050.00 198,313,600.00
(5) Major dividends receivable with aging over 1 year


Other remarks:
Other receivables
(7 Disclosure by aging
Within 1 year
Within 1 year 6,957,108,528.71
Sub-total 6,957,108,528.71
1 to 2 years 1,319,601,728.83
2 to 3 years 33,712.92
More than 3 years 444,302.12
3 to 4 years
4 to 5 years
More than 5 years
Total 8,277,188,272.58
(8) Classification by nature of funds

Nature of funds Ending book balance Beginning book balance
Temporary borrowings 8,271,013,557.45 5,806,544,968.39
Cash pledge and security 2,335,953.86 3,864,319.81
deposit
Reserves 3,447,940.36 2,039,779.64
251 / 262
Others 390,820.91 9,850.64

Total 8,277,188,272.58 5,812,458,918.48
(9 Provision for bad debt

Phase I Phase II Phase III
Expected Expected credit Expected credit

Provision for bad Total
credit loss in loss over the entire loss over the entire
debt
the next 12 existence (without existence (with
months credit impairment) credit impairment)
Balance as at
191,327.53 401,700.00 446,515.04 1,039,542.57
January 1, 2023
Balance as at
January 1, 2023
in the current
period
--Transferred to
-65,980,086.44 65,980,086.44
Phase II
--Transferred to
-6,742.58 6,742.58
Phase III
--Reversed to
Phase II
--Reversed to
Phase I
Provision made
in the current 66,021,958.90 -66,168,503.80 7,900.96 -138,643.94
period
Reversal in the
current period
Write-off in the
current period
Charge off in the
current period
Other change
Balance as at
233,199.99 206,540.06 461,158.58 900,898.63
June 30, 2023
Changes in book balance of other receivables with significant change in the amount of provision
for loss in the current period
252 / 262
Amount of provision for bad debts in the current period and the basis for evaluating whether the
credit risk of the financial instruments has significantly increased:

(11) Other receivables actually written off in the current period

Remarks to write-offs of other receivables:
(12) Top 5 other receivables in terms of the ending balance presented by debtors
Proportion in
the total
ending Ending balance
Nature of
Unit name Ending balance Aging balance of of provision for
funds
other bad debt
receivables
(%)
Huayou
(Hong Temporary
2,232,772,200.00 Within 1 year 26.98
Kong) Co., borrowings
Ltd.
Huashan Within 1 year:
Import and RMB 260
Temporary
Export 1,418,952,479.30 million; within 17.14
borrowings
(Tongxiang) 1-2 years: RMB
Co., Ltd 1,158,952,479.30
Guangxi
B&M Temporary
1,125,048,429.54 Within 1 year 13.59
Technology borrowings
Co., Ltd
Zhejiang
Huayou
New Temporary
935,302,698.71 Within 1 year 11.30
Energy borrowings
Technology
Co., Ltd
253 / 262
Quzhou
Huayou
Temporary
Cobalt New 731,898,520.00 Within 1 year 8.84
borrowings
Materials
Co., Ltd
Total / 6,443,974,327.55 / 77.85
(13) Receivables involving government subsidies

(14) Other receivables de-recognized due to transfer of financial assets

(15) Amount of assets or liabilities arising from transfer of other receivable and continued
involvement
Other remarks:

Provision Provision
Item for for
impairme impairme
nt nt
Investme
nt in 21,119,217,464 21,119,217,464 20,482,717,464 20,482,717,464
subsidiari .96 .96 .96 .96
es
Investme
nt in joint
3,875,871,713. 3,875,871,713. 3,275,579,013. 3,275,579,013.
ventures
62 62 84 84
and
associates
24,995,089,178 24,995,089,178 23,758,296,478 23,758,296,478
Total
.58 .58 .80 .80
(1) Investment in subsidiaries

254 / 262

Decrease Provision for Ending
Beginning Increase in the in the impairment in balance of
Investee Ending balance
balance current period current the current provision for
period period impairment
Like Cobalt
33,171,333.03 33,171,333.03
Nickel
Huayou Import
100,587,951.00 100,587,951.00
and Export
Huayou Hong
458,040,203.00 458,040,203.00
Kong
CDM Company 480,447,838.92 480,447,838.92
OIM Company 3,958,802.50 3,958,802.50
MIKAS
263,815,386.00 263,815,386.00
Company
Huayou Quzhou 2,488,000,000.00 2,488,000,000.00
Huayou Mining
8,034,611,241.51 8,034,611,241.51
Hong Kong
New Energy
1,900,000,000.00 1,900,000,000.00
Quzhou
Huayou
1,250,000,000.00 1,250,000,000.00
Recycling
Huayou New
1,940,248,109.00 1,940,248,109.00
Energy
Youqing
5,700,000.00 5,700,000.00
Trading
Tongxiang
2,850,000.00 2,850,000.00
Huaang
Beijing
1,710,000.00 1,710,000.00
Youhong
Guangxi
Huayou 50,000,000.00 50,000,000.00
Engineering
Guangxi B&M 1,599,000,000.00 326,000,000.00 1,925,000,000.00
Tongxiang
18,040,800.00 18,040,800.00
Hualing
Tongxiang
18,040,800.00 18,040,800.00
Huawang
Wenzhou
25,500,000.00 25,500,000.00
Huashan
Tianjin B&M 1,351,200,000.00 1,351,200,000.00
Resource
138,000,000.00 138,000,000.00
Recycling
255 / 262
Guangxi
265,000,000.00 198,000,000.00 463,000,000.00
Lithium Industry
Tongxiang
5,100,000.00 5,100,000.00
Huashan
Tongxiang
34,695,000.00 34,695,000.00
Huazheng
Hubei Youxing 0.00
Tongxiang
10,000,000.00 10,000,000.00
Huashi
Shanghai
17,500,000.00 17,500,000.00
Xinsheng
Guangxi
Huayou New 15,000,000.00 85,000,000.00 100,000,000.00
Materials
20,482,717,464.9 0.00 21,119,217,464.9
Total 636,500,000.00
6 6
(2) Investment in joint ventures and associates

Increase/decrease in the current period
Ending
Profit/loss Cash
balance
on dividends
Adjustment Provision of
Beginning Additional investment Other or profits Ending
Investee Reduced of other for provisi
balance investmen recognized equity declared Others balance
investment comprehens impairme on for
t under the changes for
ive income nt impair
equity distributio
ment
method n
I. Joint ventures
Sub-tota
l
II. Associates
Quzhou 594,118,061 -4,132,286.4 589,985
Anyou .75 0 ,775.35
Guangxi
Times
Lithium
708,754,753 10,000,00 717,826
-ion -928,559.64
.47 0.00 ,193.83
Battery
Investm
ent
256 / 262
Manage
ment
Center
Guangxi
Times
Lithium
657,990,658 -1,412,049.1 656,578
-ion
.42 4 ,609.28
Battery
Industry
Fund
Hubei
0.00 0.00
Xingyou
Hunan
130,099,919 -11,121,278. 3,682,892. 115,295
Yachen
.36 13 36 ,748.87
g
Quzhou 1,174,4
1,182,835,0 -8,343,069.9
Xinhua 92,025.
95.28 2
36
Zhejian
1,800,000.0 1,800,1
g 150.39
0 50.39
Diantou
Tongxia
ng 120,000,0 119,959
-19,474.44 -20,696.66
Lithium 00.00 ,828.90
Times
LG-HY 375,144,7 -7,122,771.2 367,035
-986,885.07
BCM 67.07 4 ,110.76
Haigang 73,297,50 73,297,
Pingyou 0.00 500.00
Ningbo 60,000,00 59,600,
-399,229.12
Ruihua 0.00 770.88
Sub-tota 3,875,8
3,275,579,0 638,442,2 -33,479,789. 3,682,892.
l -986,885.07 71,713.
13.84 67.07 86 36
62
3,875,8
3,275,579,0 638,442,2 -33,479,789. 3,682,892.
Total -986,885.07 71,713.
13.84 67.07 86 36
62
Other remarks:
257 / 262
4. Operating income and operating cost

(1) Details of operating income and operating cost
Amount incurred in the previous
Amount incurred in the current period
Item period
Income Cost Income Cost
Primary business 2,088,341,380.39 1,758,055,212.78 2,652,557,272.47 1,871,458,019.43
Other businesses 56,824,958.85 43,503,063.57 122,735,558.36 97,421,220.03
Total 2,145,166,339.24 1,801,558,276.35 2,775,292,830.83 1,968,879,239.46
(2) Income from contracts

(3) Information related to performance obligations:

(4) Information related to transaction prices apportioned to the remaining performance

obligations:
Other remarks:
None
5. Investment income
Item
Long-term equity investment income 385,615,050.00
198,313,600.00
accounted by cost method
Long-term equity investment income -33,479,789.86
13,325,333.53
accounted by equity method
Investmennt income from disposal of
long-term equity investments
Investment income from
available-for-sale financial assets
during the holding period
Dividend income from other equity
instrument investments during the
258 / 262
holding period
Interests income from debt
Interests income from other debt 102,921,704.66
held-for-trading financial assets
other equity instruments
creditor’s right investments
other creditor’s right investments
Income from debt restructuring
Investment income from disposal of -741,313.38 25,300,134.89
Total 454,315,651.42 236,939,068.42
Other remarks:
None
6. Others
XVIII. Supplementary information

1. Breakdown of non-recurring profit or loss in the current period
Item Amount Remark
Gains or losses on the disposal of
-11,324,161.80
non-current assets
Tax refunds, exemptions and reductions
with ultra vires approval or without
official approval documents
Government subsidy included into current
profit and loss (except for the government
subsidy that is tightly related to the
Company’s normal operations and 157,469,972.63
enjoyed per quota or per ration continually
in accordance with the government
uniform standard)
Expenses for using funds charged from
non-financial enterprises and included in
259 / 262
the current profit and loss

Gains from the difference of the
investment costs for acquiring
subsidiaries, associates and joint ventures
in short of the share in the net fair value of
identifiable assets of the investee when
investing
Gains or losses from non-monetary asset
exchange
Profit or loss on entrusting others to invest
in or manage assets
Various provision of asset impairment
made due to force majeure, such as natural
disasters
Profit or loss from debt restructuring
Enterprise reorganizing expenses, such as
employee accommodation costs and
integration expenses
Profit or loss on transactions made at
unfair transaction price in excess of the
fair value
Current net profit or loss of the
subsidiaries from enterprise merger under
the same control from the beginning of the
period to the merger date
Profit or loss on contingent matter
irrelevant to normal business operation of
the Company
Gain or loss on changes in fair values of
held-for-trading financial assets,
derivative financial assets,
held-for-trading financial liabilities and
derivative financial liabilities as well as
the investment income obtained from
disposal of held-for-trading financial 154,889,082.99
assets, derivative financial assets,
held-for-trading financial liabilities,
derivative financial liabilities and other
debt investment, except for effective
hedging operations associated with the
Company’s normal operations
Reversal of provision for impairment of
receivables subject to separate impairment
test
260 / 262
Profit or loss from external entrusted loans

Profit or loss on changes in fair value of
investment real estates subsequently
measured by adopting the fair value model
Effect on current profit or loss due to
one-off adjustment thereto in accordance
with the requirements of laws and
regulations regarding taxation or
accounting
Income from trustee fees charged for
entrusted operation
Non-operating income and expenses other
-8,937,112.14
than the above-mentioned items
Other items of profit or loss subject to the
definition of non-recurring profit or loss
Less: affected amount of income tax 29,919,188.72
Effected amount of minority equity
16,274,604.45
(after tax)
Total 245,903,988.51
Please explain the reason for the non-recurring profit and loss items identified by the Company
according to the definitions as stipulated in the Explanatory Announcement for Information
Disclosure by Companies that Issue Securities to the Public No.1 - Non-recurring Profits and
Losses, and the non-recurring profit and loss items listed in the Explanatory Announcement for
Information Disclosure by Companies that Issue Securities to the Public No.1 - Non-recurring
Profits and Losses are all included into the non-recurring profit and loss items.
2. Return on equity and earnings per share

Earnings per share
Profit during the Reporting Weighted average
Basic EPS Diluted EPS
Period return on equity
(RMB/share) (RMB/share)
ordinary shareholders of the 7.63 1.32 1.32
Company
ordinary shareholders of the
Company after deducting 6.73 1.16 1.16
non-recurring profits and
losses
261 / 262
3. Differences in accounting data under domestic and foreign accounting standards

4. Others
Chairman: Chen Xuehua

Date of approval by the board of directors: August 25, 2023
262 / 262

2023 Semi Annual Report of Huayou Cobalt

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2023 Semi Annual Report of Huayou Cobalt

Uploaded by

Copyright:

Available Formats

2023 Semi-Annual Report

Stock Code: 603799 Stock Name: Huayou Cobalt

2023 Semi-Annual Report

II. All directors have attended the Board meeting.

III. This semi-annual report is unaudited.

VI. Risk related to forward-looking statements

X. Major risks warnings

Section II Company Overview and Major Financial Indicator

II. Contact persons and their contact details

III. Change of company address

IV. Information disclosure and location change

VI. Other relevant information

VII. Major accounting data and financial indicators of the Company

(II) Major financial indicators

Description of the Company’s major accounting data and financial indicators

IX. Items and amounts of non-recurring gains and losses

loss (except for the government subsidies that are closely

profits and losses items.

Section III Management Discussion and Analysis

2. New material business

(III) Industry situation

II. Core competence analysis during the reporting period

III. Business discussion and analysis

IV. Main operation status during the reporting period

contributed by low tax rate entities

(II) Significant changes in profits resulting from non-primary business

(III) Analysis of assets and liabilities

(1) Asset size

(2) Explanation for relatively high proportion of overseas assets

3. Restriction of major assets as of the end of the reporting period

The RMB 5,774,551,004.71 is other cash and bank balances,

(IV) Analysis of investments

(1) Major equity investments

(2) Major non-equity investments

(3) Financial assets measured at fair value

Private fund investments

□Applicable √Not applicable

(V) Sales of major assets and major equity

(VI) Analysis of major holding companies and participating companies

(VII) Structural entities controlled by the Company

(II) Other disclosures

Section IV Corporate Governance

Description of the shareholders’ meeting

II. Changes in directors, supervisors, and senior officers of the Company

Changes in directors, supervisors, and senior officers of the Company

Employee stock ownership plan

Other incentive measures

Section V Environmental and Social Responsibility

Nitrogen oxide 7.5mg/m3 100mg/m3 0.45t 1.73t None

3. Environmental impact assessment of construction projects and other administrative permits

Name of the Environmental impact assessment of construction projects and other

Approval Form for Environmental Impact Assessment of Existing Projects

New project with an annual Jia Huan Jian Han [2014]

and Development Center

output of 50,000 tons of [2023] No. 18

4. Emergency plan for environmental emergencies

Name of the Emergency plan for environmental emergencies

According to the requirements of the Emergency Management Measures for

5. Environmental self-monitoring plan

Discharge License Management Information Platform. It also entrusts third-party environmental

7. Other environmental information that should be disclosed

2. Disclosure of other environmental information with reference to the disclosure requirements

3. Reasons for not disclosing other environmental information

Section VI Major Matters