2023 Semi Annual Report of Huayou Cobalt
2023 Semi Annual Report of Huayou Cobalt
2023 Semi Annual Report of Huayou Cobalt
August, 2023
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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.
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
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
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XI. Others
□Applicable √Not applicable
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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.
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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
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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.
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
Net profit attributable to
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
VIII. Differences of accounting data under Chinese and overseas accounting standards
□Applicable √Not applicable
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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
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X. Others
□Applicable √Not applicable
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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
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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.
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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
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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
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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.
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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
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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.
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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
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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
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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
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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
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“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
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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.
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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
□Applicable √Not applicable
2. Detailed description of major changes in the Company’s business type, profit composition, or
profit source during the current period
□Applicable √Not applicable
2. Overseas assets
√Applicable □Not applicable
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4. Other information
□Applicable√Not applicable
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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.
5. On March 19, 2023, the General Manager’s Office Meeting of the Company decided to approve the
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.
6. On March 24, 2023, the General Manager’s Office Meeting of the Company decided to approve the
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).
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Derivatives investments
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V. Other disclosures
(I) Possible risks
√Applicable □Not applicable
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
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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.
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Whether there is the situation that preferred shareholders with voting rights resumed request to
convene an extraordinary shareholder’ meeting
□Applicable √Not applicable
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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
√Applicable □Not applicable
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
□Applicable √Not applicable
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Other information
□Applicable √Not applicable
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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
COD Main 44.0603mg/L 60mg/L 63.64t 380.75t None
Intermittent discharge
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
COD Main 8.876mg/L 50mg/L 1.45t 39.27t None
Intermittent discharge
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
COD Main 44.0603mg/L 60mg/L 18.45t 53.91t None
Intermittent discharge
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
COD Main 26.5mg/L 50mg/L 0.19t 9.22t None
Intermittent discharge
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
√Applicable □Not applicable
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
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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).
Waste gas treatment facilities: All of the 102 sets of waste gas treatment facilities,
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;
Solid waste treatment measures: Household wastes are entrusted to the environmental
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).
Waste gas treatment facilities: All of the 26 sets of waste gas treatment facilities,
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
Solid waste treatment measures: Household wastes are entrusted to the environmental
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,
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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;
Solid waste treatment measures: Household wastes are entrusted to the environmental
sanitation department for paid cleaning and transportation. General industrial solid wastes
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;
Noise treatment measures: Noise reduction measures such as selection of low noise
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).
Waste gas treatment facilities: All of the 19 sets of waste gas treatment facilities,
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
Solid waste treatment measures: Household wastes are entrusted to the environmental
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.
Noise treatment measures: Noise reduction measures such as selection of low noise
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).
Waste gas treatment facilities: All of the 22 sets of waste gas treatment facilities,
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;
Solid waste treatment measures: Household wastes are entrusted to the environmental
Huajin
sanitation department for paid cleaning and transportation. General industrial solid wastes
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;
Noise treatment measures: Noise reduction measures such as selection of low noise
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).
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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:
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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
Project with an annual Qu Huan Ji Jian [2019]
output of 40000 tons of No. 4
ternary precursor new
materials for high-nickel
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.
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6. Administrative punishment received due to environmental issues during the reporting period
□Applicable √Not applicable
(II) Description of environmental protection situation of the companies not belonging to the key
pollutant discharging units announced by the environmental protection department
√Applicable □Not applicable
1. Administrative punishment received due to environmental issues
□Applicable √Not applicable
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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 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.
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.
Storage and disposal of solid waste: Household waste is entrusted to the environmental sanitation
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
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.
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Guangxi B&M:
The main pollutants discharged from the non ferrous include COD, ammonia nitrogen,
particulate matter, etc.
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.
Storage and disposal of solid waste: Household waste is entrusted to the environmental sanitation
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
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.
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
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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
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.
The main pollutants discharged by Zhejiang B&M include COD, ammonia nitrogen,
particulate matter, etc.
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
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.
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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.
(III) Subsequent progress or change in environmental information disclosed during the reporting
period
□Applicable √Not applicable
(IV) Relevant environmental information that is conducive to protecting ecology, preventing and
controlling pollution, and fulfilling environmental responsibilities
√Applicable □Not applicable
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
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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
√Applicable □Not applicable
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
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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
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2023 Semi-Annual Report
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
√Applicable □Not applicable
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
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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.
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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
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II. Controlling shareholder’s and other related parties’ occupation of the Company’s funds for non-operation purpose during the reporting period
□Applicable √Not applicable
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V. Changes in matters covered by non-standard audit opinions in last year’s annual report and
handling thereof
□Applicable √Not applicable
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
□Applicable √Not applicable
IX. Credit status of the Company, its controlling shareholder and actual controller during the
reporting period
√Applicable □Not applicable
During the reporting period, the Company, its controlling shareholders and actual controllers maintained
good credit status.
2. Those that have been disclosed in the interim announcement but have progress or changes in
subsequent implementation
□Applicable √Not applicable
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(II) Related-party transactions related to the acquisition of assets or acquisition or sale of equity
1. Those that have been disclosed in the interim announcement and have no progress or changes
in subsequent implementation
□Applicable √Not applicable
2. Those that have been disclosed in the interim announcement but have progress or changes in
subsequent implementation
□Applicable √Not applicable
2. Those that have been disclosed in the interim announcement but have progress or changes in
subsequent implementation
□Applicable √Not applicable
2. Those that have been disclosed in the interim announcement but have progress or changes in
subsequent implementation
□Applicable √Not applicable
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(V) Financial business between the Company and related financial companies, or between the
financial companies controlled by the Company and related parties
□Applicable √Not applicable
(VII) Others
□Applicable √Not applicable
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unexpired guarantees
Description of guarantee situation None
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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)
□Applicable √Not applicable
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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) 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.
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(III) Strategic investors or general legal persons become the top 10 shareholders due to the
placement of new shares
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(II) Equity incentives granted to directors, supervisors and senior officers during the reporting
period
□Applicable √Not applicable
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Section IX Bonds
I. Enterprise bonds, corporate bonds, and non-financial corporate debt financing
instruments
√Applicable □Not applicable
(III) Debt financing instruments for non-financial enterprises in the interbank bond market
√Applicable □Not applicable
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Overdue bonds
□Applicable √Not applicable
Overdue debts
□Applicable √Not applicable
2. Trigger and enforcement of the issuer or investor option clauses and investor protection
clauses
□Applicable √Not applicable
4. Implementation and change of guarantees, debt repayment plans, and other debt
repayment guarantee measures during the reporting period and their impact
□Applicable √Not applicable
Other information
None
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(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
□Applicable √Not applicable
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(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
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(IV) Cumulative amount of convertible corporate bonds converted into shares during the
reporting period
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
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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,
Adjustment of the Conversion Price of
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.
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Person in charge of the Company: Chen Xuehua; Accounting Principal: Wang Jun; Head of the
Accounting Dept.: Ma Xiao
Held-for-trading financial
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
Held-for-trading financial
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
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Person in charge of the Company: Chen Xuehua; Accounting Principal: Wang Jun; Head of the
Accounting Dept.: Ma Xiao
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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
General and administrative
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
(“-” for losses)
Income from disposal of assets
-3,019,116.47 9,658.92
(“-” for losses)
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
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Person in charge of the Company: Chen Xuehua Accounting Principal: Wang Jun Head of the
Accounting Dept.: Ma Xiao
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operating activities
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
Cash received from other
1,625,313,208.08 521,771,151.83
investing activities
Sub-total of cash inflows from
2,172,144,115.49 1,539,659,811.30
investing activities
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
investing activities
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
Cash received from other
3,551,304,026.51 5,302,982,688.88
financing activities
Sub-total of cash inflows from
22,180,359,374.12 30,869,089,221.20
financing activities
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
Sub-total of cash outflows from
14,375,311,709.89 11,414,826,823.81
financing activities
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2023 Semi-Annual Report
investing activities
Sub-total of cash inflows from
10,129,457,688.67 10,337,533,657.16
investing activities
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
investing activities
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
Cash received from other
6,429,715,124.17 13,742,033,224.96
financing activities
Sub-total of cash inflows from
11,734,557,749.71 17,723,888,224.83
financing activities
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
Sub-total of cash outflows from
9,013,349,467.29 10,903,677,435.41
financing activities
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
Person in charge of the Company: Chen Xuehua Accounting Principal: Wang Jun Head of the
Accounting Dept.: Ma Xiao
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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
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
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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
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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
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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
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2023 Semi-Annual Report
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
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current period
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
capital reserves into
366,379,735.00 -366,379,735.00
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 -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
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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”).
2. Going concern
√Applicable □Not applicable
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.
2. Accounting period
The accounting period of the Company is from January 1 to December 31 in a calendar year.
3. Operating cycle
√Applicable □Not applicable
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.
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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
√Applicable □Not applicable
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.
7. Classification of joint venture arrangements and accounting treatment methods for joint
operation
√Applicable □Not applicable
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.
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.
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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
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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
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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
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15. Inventories
√Applicable □Not applicable
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.
(2) Recognition and accounting treatment method for expected credit loss of contract assets
□Applicable √Not applicable
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.
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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.
(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.
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(3) Recognition basis of, valuation and depreciation method for, fixed assets acquired through
financing lease
□Applicable √Not applicable
(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.
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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.
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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.
38. Income
(1) Accounting policies used in recognizing and measuring income
√Applicable □Not applicable
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
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2023 Semi-Annual Report
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
□Applicable √Not applicable
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.
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
□Applicable √Not applicable
(3) Determination method and accounting treatment method for leases under the new leasing
standards
√Applicable □Not applicable
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
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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.
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2023 Semi-Annual Report
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.
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2023 Semi-Annual Report
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.
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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.
(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
□Applicable √Not applicable
45. Others
□Applicable √Not applicable
VI. Taxation
1. Main tax types and tax rates
Details of main tax types and tax rates
√Applicable □Not applicable
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
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2023 Semi-Annual Report
2. Tax preference
√Applicable □Not applicable
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
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2023 Semi-Annual Report
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.
In accordance with the decision of the Minister of Finance of the Republic of Indonesia on Preferential
Policy on Enterprise Income Tax Relief for Huake Company, Huake Company shall be entitled to a
100% relief in enterprise income tax for 10 years starting from the tax year of commercial production,
exempt from the withholding tax of the income obtained by third parties from Huake Company, and
entitled to a 50% relief in enterprise income tax for 2 years after the above relief expires.
In accordance with the decision of the Minister of Finance of the Republic of Indonesia on Preferential
Policy on Enterprise Income Tax Relief for Huafei Company, Huafei Company shall be entitled to a
100% relief in enterprise income tax for 20 years starting from the tax year of commercial production,
exempt from the withholding tax of the income obtained by third parties from Huafei Company, and
entitled to a 50% relief in enterprise income tax for 2 years after the above relief expires.
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
□Applicable √Not applicable
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2023 Semi-Annual Report
4. Notes receivable
(1) Notes receivable presented by categories
□Applicable √Not applicable
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2023 Semi-Annual Report
(2) Notes receivable that have been pledged as at the end of the period
□Applicable √Not applicable
(3) Notes receivable endorsed or discounted by the Company as at the end of the period but not
expired on the balance sheet date
□Applicable √Not applicable
(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
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
5. Accounts receivable
(1) Disclosure by aging
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
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
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:
□Applicable √Not applicable
Total / 4,724,396.86 / / /
Remarks to write-offs of accounts receivable:
□Applicable √Not applicable
(5) Top 5 accounts receivable in terms of the ending balance presented by debtors:
□Applicable √Not applicable
(7) Amount of assets or liabilities arising from transfer of accounts receivable and continued
involvement
□Applicable √Not applicable
Other remarks:
√Applicable □Not applicable
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
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:
□Applicable √Not applicable
Other remarks:
√Applicable □Not applicable
(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
2023 Semi-Annual Report
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
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Ending balance Beginning balance
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
□Applicable √Not applicable
Other remarks:
√Applicable □Not applicable
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.
8. Other receivables
Presented by items
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Item Ending balance Beginning balance
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:
□Applicable √Not applicable
Interests receivable
(1) Classification of interests receivable
□Applicable √Not applicable
146 / 262
2023 Semi-Annual Report
Other remarks:
□Applicable √Not applicable
Dividends receivable
(1) Dividends receivable
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
Other receivables
(4) Disclosure by aging
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Aging Ending balance
Within 1 year
Including: each sub-item
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
147 / 262
2023 Semi-Annual Report
Changes in book balance of other receivables with significant change in the amount of provision for loss
in the current period
□Applicable √Not applicable
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:
□Applicable √Not applicable
In which, significant amount of provision for bad debt recovered or reversed in the current period:
□Applicable √Not applicable
(9) Top 5 other receivables in terms of the ending balance presented by debtors
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
2023 Semi-Annual Report
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
(12) Amount of assets or liabilities arising from transfer of other receivables and continued
involvement
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
9. Inventories
(1) Classification of inventories
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Ending balance Beginning balance
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
2023 Semi-Annual Report
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
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
Other remarks:
□Applicable √Not applicable
150 / 262
2023 Semi-Annual Report
(2) Amount of and reason for major changes in the book value during the reporting period
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
151 / 262
2023 Semi-Annual Report
(4) Amount of assets or liabilities arising from transfer of long-term receivable and continued
involvement
□Applicable √Not applicable
Other remarks:
√Applicable □Not applicable
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
2023 Semi-Annual Report
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).
153 / 262
2023 Semi-Annual Report
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
2023 Semi-Annual Report
(“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
2023 Semi-Annual Report
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
156 / 262
2023 Semi-Annual Report
Other remarks:
√Applicable □Not applicable
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.
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.
Fixed assets
(1) Details of fixed assets
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
financial statements
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
arising from translation
of foreign currency
financial statements
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
arising from translation
of foreign currency
financial statements
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
arising from translation
158 / 262
2023 Semi-Annual Report
of foreign currency
financial statements
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
arising from translation
720,173.90 1,086,370.12 12,622.01 1,819,166.03
of foreign currency
financial statements
3. Decrease in the
current period
(1) Disposal or
scrapping
(2) Differences
arising from translation
of foreign currency
financial statements
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
159 / 262
2023 Semi-Annual Report
Other remarks:
□Applicable √Not applicable
Construction in progress
(1) Details of construction in progress
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Ending balance Beginning balance
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
output of 50,000 tons
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
electrical batteries with
an annual output of
50,000 tons
160 / 262
2023 Semi-Annual Report
162 / 262
2023 Semi-Annual Report
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
2023 Semi-Annual Report
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
Other remarks:
□Applicable √Not applicable
Project materials
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Ending balance Beginning balance
Provisi Provisi
Item on for on for
Book balance Book value Book balance Book value
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
Other remarks:
□Applicable √Not applicable
Other remarks:
164 / 262
2023 Semi-Annual Report
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
III. Provision for impairment
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
(4)
Differences arising
from translation of 9,338,160.96
549,762.28
11,215,034.96
foreign currency
financial statements
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
financial statements
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
financial statements
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
financial statements
4. Ending
103,927,594.48 43,658,655.24 24,037,211.59 387,811,564.72 15,939,571.99 5
balance
III. Provision for impairment
1.Beginning
balance
2. Increase in
the current period
(1)Provision
made
3. Decrease in
the current period
(1)Disposal
4.Ending
166 / 262
2023 Semi-Annual Report
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
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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:
□Applicable √Not applicable
28. Goodwill
(1) Original book value of goodwill
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
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
□Applicable √Not applicable
(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
√Applicable □Not applicable
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
168 / 262
2023 Semi-Annual Report
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.
Other remarks:
□Applicable √Not applicable
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2023 Semi-Annual Report
(3) Deferred income tax assets/liabilities presented by net amount after offset
□Applicable √Not applicable
(5) Deductible loss of unrecognized deferred income tax assets to be due in the following years
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
2023 Semi-Annual Report
Other remarks:
□Applicable √Not applicable
172 / 262
2023 Semi-Annual Report
(2) Amount of and reason for major changes in the book value during the Reporting Period
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
173 / 262
2023 Semi-Annual Report
Other remarks:
□Applicable √Not applicable
174 / 262
2023 Semi-Annual Report
Interests payable
□Applicable √Not applicable
Dividends payable
□Applicable √Not applicable
Other payables
(1) Other payables presented by nature of funds
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Item Ending balance Beginning balance
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
175 / 262
2023 Semi-Annual Report
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.
Other remarks:
None
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2023 Semi-Annual Report
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:
□Applicable √Not applicable
177 / 262
2023 Semi-Annual Report
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
□Applicable √Not applicable
Table of changes in preference shares, perpetual bonds and other financial instruments issued and
outstanding as at the end of the period
□Applicable √Not applicable
Other remarks:
√Applicable □Not applicable
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).
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2023 Semi-Annual Report
Long-term payables
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Item Ending balance Beginning balance
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
□Applicable √Not applicable
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
180 / 262
2023 Semi-Annual Report
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
subsidies for Related
27,814,393.77 847,712.70 26,966,681.07
technological to assets
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
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2023 Semi-Annual Report
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
subsidies for Related
28,605,489.09 5,000,000.00 2,241,128.71 31,364,360.38
technological to assets
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:
□Applicable √Not applicable
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2023 Semi-Annual Report
(2) Table of changes in preference shares, perpetual bonds and other financial instruments issued
and outstanding as at the end of the period
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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:
√Applicable □Not applicable
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:
□Applicable √Not applicable
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2023 Semi-Annual Report
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).
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
Other remarks (including remarks to the increase/decrease in the current period and the reason therefor):
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.
186 / 262
2023 Semi-Annual Report
187 / 262
2023 Semi-Annual Report
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.
Other remarks:
None
188 / 262
2023 Semi-Annual Report
190 / 262
2023 Semi-Annual Report
Other remarks:
192 / 262
2023 Semi-Annual Report
Other remarks:
□Applicable √Not applicable
(2) Net cash paid for acquisition of subsidiaries in the current period
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
198 / 262
2023 Semi-Annual Report
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.
199 / 262
2023 Semi-Annual Report
(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)
√Applicable □Not applicable
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
√Applicable □Not applicable
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).
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
Deferred income, other
technological
income
innovation
Financial subsidies for 847,712.70
Deferred income, other
technological
income
transformation
Subsidy for 4,825,800.00 6,306,993.91
Deferred income, other
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
Deferred income, other
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
Deferred income, other
air pollution prevention
income
and control
Project of industrial 1,500,000.00 517,729.02
Deferred income, other
chain collaborative
income
innovation
Subsidies for industrial 4,495,000.00 435,043.30
Deferred income, other
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
Deferred income, other
productive investment
income
projects
Subsidies for 2,000,000.00 3,457,710.00
Deferred income, other
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
Deferred income, other
technological
income
transformation
Other sporadic 14,313,805.94 Deferred income, other 3,307,536.57
201 / 262
2023 Semi-Annual Report
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
85. Others
□Applicable √Not applicable
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.
202 / 262
2023 Semi-Annual Report
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
□Applicable √Not applicable
(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.
□Applicable √Not applicable
3. Counter purchase
□Applicable √Not applicable
203 / 262
2023 Semi-Annual Report
4. Disposal of subsidiaries
Whether there is a loss of control due to disposal of investment in subsidiaries through a single transaction
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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:
√Applicable □Not applicable
204 / 262
2023 Semi-Annual Report
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.
6. Others
□Applicable √Not applicable
205 / 262
2023 Semi-Annual Report
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
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.
207 / 262
2023 Semi-Annual Report
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:
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
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
2023 Semi-Annual Report
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:
□Applicable √Not applicable
209 / 262
2023 Semi-Annual Report
(5) Financial or other supports provided for structured entities included in the
consolidated financial statement:
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
(2) Impacts of the transactions on minority shareholders’ equity and owners’ equity
attributable to the parent company
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
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
2023 Semi-Annual Report
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.
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
2023 Semi-Annual Report
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
Current
2,065,187,018.88 1,083,167,116.44 2,237,259,136.82 3,310,899,861.29
liabilities
213 / 262
2023 Semi-Annual Report
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
2023 Semi-Annual Report
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
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
2023 Semi-Annual Report
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
216 / 262
2023 Semi-Annual Report
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
2023 Semi-Annual Report
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
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
2023 Semi-Annual Report
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
2023 Semi-Annual Report
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
2023 Semi-Annual Report
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
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
2023 Semi-Annual Report
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
2023 Semi-Annual Report
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
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
2023 Semi-Annual Report
(5) Major restrictions on capital transferring from joints ventures or associates to the
Company:
□Applicable √Not applicable
6. Others
□Applicable √Not applicable
224 / 262
2023 Semi-Annual Report
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
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2023 Semi-Annual Report
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
Held-for-trading
financial 82,840,808.91 82,840,808.91 82,840,808.91
liabilities
Non-current
liabilities
2,011,589,609.97 2,038,397,466.93 2,038,397,466.93
maturing within
one year
Other current
1,426,394,022.07 1,444,915,500.00 1,444,915,500.00
liabilities
226 / 262
2023 Semi-Annual Report
Long-term
5,723,208,619.59 6,053,498,551.82 4,328,046,276.66 1,725,452,275.16
payables
(Continued)
Endding amount of the last year
Item Undiscounted
Book value Within 1 year 1-3 years Above 3 years
contract amount
Held-for-tradin
g financial 40,024,798.40 40,024,798.40 40,024,798.40
liabilities
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 current
1,311,482,728.68 1,654,602,779.88 1,654,602,779.88
liabilities
Long-term
5,155,378,248.88 5,516,949,998.39 2,541,468,653.90 2,975,481,344.49
payables
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.
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loss
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2. Basis for determining the market price for the items subject to the first level of
continuous and non-continuous fair value measurement
√Applicable □Not applicable
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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
□Applicable √Not applicable
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
□Applicable √Not applicable
7. Changes in valuation techniques in the current period and the reason therefor
□Applicable √Not applicable
8. Fair value of the financial assets and liabilities not measured at fair value
□Applicable √Not applicable
9. Others
□Applicable √Not applicable
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:
√Applicable □Not applicable
Name of joint ventures or associates Relationship with the Company
PT Alam A joint venture
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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
Development Fund Partnership Enterprise (Limited
Partnership)joint venture
Yulin Times Lvshui Environmental A subsidiary of the associate Guangxi Times
Protection Technology Co., Ltd Lithium-ion Battery New Materials Industry
Development Fund Partnership Enterprise (Limited
Partnership)joint venture
Yulin Times Tianlan Gas Co., Ltd A subsidiary of the associate Guangxi Times
Lithium-ion Battery New Materials Industry
Development Fund Partnership Enterprise (Limited
Partnership)joint venture
Ningbo Ruihua An associate
LG-HY BCM An associate
Jintang B&M An associate
Other remarks:
□Applicable √Not applicable
233 / 262
2023 Semi-Annual Report
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
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
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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
□Applicable √Not applicable
238 / 262
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Amount of
Related party Starting date Maturity date Remark
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
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Amount of
Related party Starting date Maturity date Remark
lending/borrowing
PT. ALAM 7,948,380.00 2022/1/21 2024/1/20
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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
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
8. Others
□Applicable √Not applicable
241 / 262
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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
5. Others
□Applicable √Not applicable
243 / 262
2023 Semi-Annual Report
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
√Applicable □Not applicable
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.
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(2) Explanation shall also be given even if there is no major contingency to be disclosed by
the Company
□Applicable √Not applicable
3. Others
□Applicable √Not applicable
2. Profit distribution
□Applicable √Not applicable
3. Sales return
□Applicable √Not applicable
2. Debt restructuring
□Applicable √Not applicable
3. Replacement of assets
(1) Replacement of non-monetary assets
□Applicable √Not applicable
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4. Pension plan
□Applicable √Not applicable
5. Discontinued operation
□Applicable √Not applicable
6. Segment information
(1) Determination basis and accounting policies of the reportable segment
□Applicable √Not applicable
(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.
□Applicable √Not applicable
8. Others
□Applicable √Not applicable
XVII Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure by aging
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Aging Ending book balance
Within 1 year
Including: each sub-item
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
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4 to 5 years
More than 5 years
Total 277,972,703.31
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
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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:
□Applicable √Not applicable
In which, significant amount of provision for bad debt recovered or reversed in the current period:
□Applicable √Not applicable
(5) Top 5 accounts receivable in terms of the ending balance presented by debtors
□Applicable √Not applicable
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(7) Amount of assets or liabilities arising from transfer of accounts receivable and continued
involvement
□Applicable √Not applicable
Other remarks:
√Applicable □Not applicable
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.
2. Other receivables
Presented by items
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Item Ending balance Beginning balance
Interests receivable
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:
□Applicable √Not applicable
Interests receivable
(1) Classification of interests receivable
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
Dividends receivable
(4) Dividends receivable
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
250 / 262
2023 Semi-Annual Report
Other remarks:
□Applicable √Not applicable
Other receivables
(7 Disclosure by aging
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Aging Ending book balance
Within 1 year
Including: each sub-item
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
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
□Applicable √Not applicable
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2023 Semi-Annual Report
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:
□Applicable √Not applicable
(12) Top 5 other receivables in terms of the ending balance presented by debtors
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
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
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2023 Semi-Annual Report
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
(15) Amount of assets or liabilities arising from transfer of other receivable and continued
involvement
□Applicable √Not applicable
Other remarks:
□Applicable √Not applicable
254 / 262
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255 / 262
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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
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
2023 Semi-Annual Report
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:
□Applicable √Not applicable
257 / 262
2023 Semi-Annual Report
Other remarks:
None
5. Investment income
√Applicable □Not applicable
Monetary unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
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
2023 Semi-Annual Report
holding period
Interests income from debt
investments during the holding period
Interests income from other debt 102,921,704.66
investments during the holding period
Investmennt income from disposal of
held-for-trading financial assets
Investmennt income from disposal of
other equity instruments
Investmennt income from disposal of
creditor’s right investments
Investmennt income from disposal of
other creditor’s right investments
Income from debt restructuring
Investment income from disposal of -741,313.38 25,300,134.89
financial instruments
Total 454,315,651.42 236,939,068.42
Other remarks:
None
6. Others
□Applicable √Not applicable
259 / 262
2023 Semi-Annual Report
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.
□Applicable √Not applicable
261 / 262
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4. Others
□Applicable √Not applicable
262 / 262