Asset Appraisal Report
Zhongshui Zhiyuan Appraisal Report No. [2026] 020582
This appraisal report is prepared in accordance with the Asset Appraisal Standards of China.
Summary
Zhongshui Zhiyuan Asset Appraisal Co., Ltd. was engaged by Yichun Shengyuan Lithium Industry Co., Ltd. to appraise the market value of the total equity of Yifeng County Huaqiao Mining Co., Ltd. in connection with the proposed capital increase.
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Purpose of Appraisal: Yichun Shengyuan Lithium Industry Co., Ltd. intends to increase the capital of Yifeng County Huaqiao Mining Co., Ltd. This appraisal serves as a value reference for this economic activity.
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Appraisal Object and Scope: The object of the appraisal is the total equity value of Yifeng County Huaqiao Mining Co., Ltd. The scope includes all audited assets and liabilities of the company. As of the valuation date, the book value of total assets was 398.2321 million RMB, total liabilities were 270.9632 million RMB, and the book value of owner's equity was 127.2689 million RMB.
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Value Type: Market value.
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Valuation Date: December 31, 2025.
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Appraisal Method: Asset-based approach.
VI. Valuation Conclusion: Based on the valuation, as of the valuation base date of December 31, 2025, the total equity value of the shareholders of Yifeng County Huaqiao Mining Co., Ltd. is RMB 269,342.43 ten thousand, written in words as: RMB two billion, six hundred ninety-three million, four hundred twenty-four thousand, three hundred yuan only.
VII. Validity Period of Valuation Conclusion: In accordance with relevant regulations, the valuation conclusion of this report is valid for one year from the valuation base date in principle.
VIII. Special Matters Affecting the Valuation Conclusion:
(I) Matters Requiring Explanation Regarding Mining Rights Valuation
- On July 7, 2025, the Yichun Municipal Bureau of Natural Resources issued the "Notice of the Yichun Municipal Bureau of Natural Resources on Compiling Reserve Verification Reports," requiring 8 lithium-related mining enterprises, including Yichun Times New Energy Mining Co., Ltd., Yichun Guoxuan Mining Co., Ltd., Yichun Shengyuan Lithium Industry Co., Ltd., Yifeng County Huaqiao Mining Co., Ltd., Yifeng County Huali Mining Development Co., Ltd., Jiangxi Dingxing Mining Co., Ltd., Jiangxi Chunyou Lithium Industry Co., Ltd., and Yifeng County Donglian Mineral Products Development Co., Ltd., to complete the compilation of reserve verification reports before September 30 and scientifically and reasonably determine the primary mining species.
The primary mining species of this mining right needs to be changed. Relevant work such as reserve verification and mining plan compilation has been completed, and the application for changing the primary mining species has been submitted. The Ministry of Natural Resources accepted it on March 12, 2026. It is expected that the primary mining species will be changed to lithium ore. This valuation is based on the proposed change of the primary mining species to lithium ore, and the final result shall be subject to the approval of the Ministry of Natural Resources and the new mining license.
- According to the "Notice on Payment of Mining Right Transfer Proceeds and Capital Occupation Fees" issued by the Yichun Municipal Bureau of Natural Resources, Huaqiao Mining shall pay the transfer proceeds of the mining right for the Huashan porcelain stone mine in Baishi Village, Huaqiao Township, Yifeng County, amounting to RMB 28.3652 million, before September 2, 2019.
Based on the "Valuation Report on the Transfer Proceeds of the Mining Right for the Huashan Porcelain Stone Mine in Baishi Village, Huaqiao Township, Yifeng County" issued by Jiangxi Xinda Mining Consulting Service Co., Ltd., with a valuation base date of August 31, 2019, the assessed retained porcelain stone resource reserves (332+333) were 45.073 million tons, with recoverable reserves of 27.0411 million tons, a production scale of 1 million tons/year, an assessed service life of 27.04 years, and mining right transfer proceeds of RMB 28.3652 million.