Sichuan Yahua Industrial Group Co., Ltd.

Sichuan Yahua Industrial Group Co., Ltd. is a prominent company listed on the Shenzhen Stock Exchange since 2010, specializing in the mining and dressing of nonferrous metals. Founded in 1952, the company has undergone significant transformations, including state-owned enterprise reforms, mergers and acquisitions, and expansion into various markets. Yahua operates more than 70 wholly-owned and holding subsidiaries across regions including Sichuan, Inner Mongolia, Shanxi, Jilin, Hong Kong, New Zealand, Australia, and Zimbabwe. The company’s main business lines include civil explosives and lithium products. In the civil explosive sector, Yahua produces a wide range of explosives and provides engineering blasting services, with production bases strategically located in resource-rich areas. In the lithium industry, Yahua is a key global supplier of lithium salt products, including lithium carbonate and lithium hydroxide, supported by extensive resource guarantees and partnerships with major automotive manufacturers. Additionally, Yahua has a transportation business that offers logistics services for hazardous materials and lithium products, further enhancing its operational capabilities.

(I)Location and market advantages Most of civil explosive business production bases of the Company are located in the center of China Western Development. These regions have rich water and mineral resources. Meanwhile, in the context of the new normal economy and supply side reform, governments will make every effort to promote the construction of key projects, especially construction of railways, highways, water conservancy and other infrastructure to achieve the transformation and upgrading of regional economy as soon as possible. In the lithium industry, Sichuan is the province with the largest reserves of lithium resources. With the continuous development of Sichuan's lithium resources, it will provide long-term resource guarantee for the sustainable development of the company's lithium industry. (II)Technical advantages The Company has the only national certified enterprise technology center and national accredited monitoring and calibration lab in China’s civil explosive industry, and has established many innovation platforms such as “postdoctoral innovation practice base” and Sichuan civil explosive and equipment engineering technology research center. The company has established comprehensive cooperative relationships with multiple universities, and with the deepening of the company's intelligent manufacturing, it will further enhance the company's core competitiveness. Its many technical achievements have reached the domestic and international leading level In the lithium industry, Sichuan State Lithium Material Co., Ltd. is a technology leader in the lithium industry. It has four invention patents, including lithium dihydrogen phosphate preparation device, lithium dihydrogen phosphate production method, lithium titanate whisker preparation and one-step clean production method for battery polar lithium carbonate, as well as utility model patent of lithium dihydrogen phosphate preparation device. It has mature production technology and high recovery rate and is one of the major domestic basic lithium salt suppliers. Ya'an Lithium Industry adopts advanced equipment, with a high level of automation and intelligence, stable product quality, and has won multiple honorary titles. (III)Complete industrial chain and complete variety advantages The Company’s civil explosive industry chain runs through the whole process of R&D, production, sales, distribution and use, and can provide customers with a full range of services. The Company has a full range of products. In the lithium industry, the Company currently has four enterprises. They are specialized in R&D, manufacturing, sales and service of lithium salt products, and mining and trading of lithium concentrates. In addition, the company has extended its industrial chain to the upstream and established lithium resource extraction bases in Zimbabwe, respectively. In the future, it will provide independent and controllable resource guarantees for the company's lithium salt production. （IV）Management advantages Over the course of decades of development, the company has summarized and refined a set of management and control models that are suitable for enterprise development and have unique and elegant characteristics. It has a diligent, dedicated, and highly responsible management team with strong execution ability, which can effectively promote the sustainable development of the company. After entering the lithium industry, the company has replicated effective management models in various companies in the lithium industry sector, resulting in good management synergies. （V）Merger and acquisition integration advantage The company has taken the lead in implementing interbank mergers and acquisitions within the industry, and has grown and strengthened the enterprise through mergers and acquisitions. At the same time, we have trained a group of talents in enterprise mergers and acquisitions, accumulating strong M&A integration capabilities for the rapid development of the company. （VI）Advantages of overseas development platforms The company plans to expand its overseas industries in New Zealand and Australia in advance. The company launched a lithium industry layout in Zimbabwe, expanding its lithium industry chain. With the increasing market share and performance of the overseas civilian explosive industry, and the gradual launch of the lithium industry, the company's overseas business will have greater development space. (VII)Resource advantage In recent years, the company has expanded its lithium resource supply through multiple channels to ensure the production of existing lithium business lines and the expansion of subsequent production lines. At present, the company provides important support for the future supply of lithium resources by obtaining underwriting rights and controlling lithium resources.