Youngy Co., Ltd.

Youngy Co., Ltd. is a company listed on the Shenzhen Stock Exchange, primarily engaged in the mining and processing of nonferrous metals, with a focus on new energy materials. The company aims to become a leader in high-tech industries related to lithium battery materials, encompassing the entire industry chain from lithium mineral mining to the production and deep processing of lithium salts and battery equipment. The company's operations are structured around several key business lines. Its wholly-owned subsidiary, Ganzi Rongda Lithium Co., Ltd., manages lithium mineral mining and beneficiation, producing lithium concentrate for downstream customers. Youngy also has interests in lithium salt production through its joint ventures and acquisitions, with significant capacities planned for lithium carbonate and lithium oxide. Additionally, the company manufactures lithium battery equipment through Dongguan Tec-Rich Engineering Co., Ltd. and is expanding its lithium battery cathode material business with a new facility in Guangzhou. Youngy's integrated approach to the lithium battery industry positions it competitively within the market.

1. Lithium Resource Reserves The Company owns the mining right of the 134th vein of the Kang Methyllite Ore Mine, with an average grade of over 1.42%, located in the Kangding City Methyllite Ore Mine Area, a lithium resource construction base. The lithium oxide content of the 134th vein of the Company's Methyllite Ore Mine is high, the veins are concentrated, the mining conditions are superior. It is a solid resource base for the Company to build an integrated industrial chain of lithium battery materials and continuously extend the industrial chain layout. Market research shows the current and future years lithium resource supply is sufficient, but in the long term, the new energy and storage industry is still expanding. During the period of lithium price low fluctuation, strategic position of lithium resources is increasingly highlighted, and having a continuous and stable supply guarantee is the core competitiveness of the Company. 2. Industrial Chain Synergy The Company its controlling shareholders and other related parties are all involved in the layout of the lithium battery industry chain. They are interdependent upstream and downstream. For details of the industrial chain layout, refer to "I. Main Business of the Company during the Reporting Period" in this section, "(IV) Main Drivers of the Company's Performance", "3. Company's comprehensive layout on the new energy lithium battery material industry chain". The Company will rely on its controlling shareholders and other related parties and the Company's complete layout the lithium battery industry chain to further integrate the upstream and downstream of the lithium battery material industry chain and help the Company to share technology heritage and play the synergy of the industry chain 3. Cost Competitive Advantage The Company obtained lithium resources earlier and carried out full-scale open-pit mining, with relatively low related costs and lithium concentrate products gross margin has always maintained at a relatively high level. In the current situation of sufficient lithium resource supply and lithium product price continues to fluctuate at a low level, the company' lithium concentrate product gross profit margin still has a strong competitive advantage in the industry.