Stock code: 688779 Stock abbreviation: Minmetals New Energy Announcement No.: 2025-004

Convertible bond code: 118022 Convertible bond abbreviation: lithium branch convertible bond

Minmetals New Energy Materials (Hunan) Co., Ltd

Announcement on the filing of a lawsuit by a wholly-owned subsidiary

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or material omission in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

Important Content Notes:

The litigation stage of the case: the case has been filed and accepted, and the trial has not yet been held.

The status of the listed company as a party: Hunan Changchang Lithium New Energy Co., Ltd. and Jinchi Energy Materials Co., Ltd., wholly-owned subsidiaries of Minmetals New Energy Materials (Hunan) Co., Ltd., are the plaintiffs.

Amount involved: $184,858,533.47.

Whether it will have a negative impact on the profit and loss of the listed company: In accordance with the principle of prudence and accounting standards, the company has made relevant bad debt provisions for this litigation matter in the 2024 annual results forecast. In view of the fact that the litigation case has not yet been tried in court, and the impact of the litigation on the company's current and future profits is uncertain, the company will fulfill its information disclosure obligations in a timely manner according to the progress of the litigation of the case, and investors are advised to pay attention to investment risks.

1. The basic situation of this lawsuit

Hunan Changchang Lithium New Energy Co., Ltd. and Jinchi Energy Materials Co., Ltd. (hereinafter collectively referred to as the "Subsidiary" or "Plaintiff") signed the Lithium Carbonate Procurement Framework Agreement with Zhicun Lithium Group Co., Ltd., Jiangxi Jinhui Lithium Co., Ltd. and Yichun Zhuo New Materials Co., Ltd. (hereinafter collectively referred to as "Zhicun Group" or "Defendant").

On January 7, 2025, the lawsuit was filed with the Intermediate People's Court of Changsha City, Hunan Province, and on January 10, 2025

received the "Notice of Acceptance" issued by the court. In order to safeguard the legitimate rights and interests of the Company and ensure the smooth implementation of the property preservation of this lawsuit, the Company has performed the suspension of disclosure procedures for this lawsuit in accordance with the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation, and other relevant provisions. As of the disclosure date of this announcement, the property preservation measures have been completed, and the reasons for the suspension of disclosure have been eliminated, and the specific circumstances of this lawsuit are hereby announced.

2. Basic information of the litigation case

(1) Parties to the litigation

Plaintiff 1: Hunan Changchang Lithium New Energy Co., Ltd

Plaintiff 2: Jinchi Energy Materials Co., Ltd

Defendant 1: Zhicun Lithium Group Co., Ltd

Defendant 2: Jiangxi Jinhui Lithium Co., Ltd

Defendant 3: Yichun Zhuo New Materials Co., Ltd

Defendant 4: Nan Jinxi

Defendant 5: South-East-East

Defendant 6: Nantian

(2) Facts and reasons

The plaintiff and the defendant entered into a Lithium Carbonate Procurement Framework Agreement. The Lithium Carbonate Procurement Framework Agreement stipulates

The defendant supplied the plaintiff with a total amount of not less than 24,000 between January 1, 2024 and December 31, 2024

tons of battery-grade lithium carbonate products. The monthly supply quantity of the defendant is subject to the order issued by the plaintiff, and the defendants 1, 2 and 3 jointly bear the supply obligation and responsibility. The plaintiff paid the defendant in accordance with the Lithium Carbonate Procurement Framework Agreement

An advance payment of 500 million yuan (of which Plaintiff 1 paid 400 million yuan and Plaintiff 2 paid 100 million yuan) was used to offset each of the plaintiffs

Partial payment payable per month. In strict accordance with the agreement, the plaintiff paid the advance payment in full and sent it to the defendant every month

The defendant supplied the goods to the plaintiff on time and in accordance with the quantity from January to August 2024. In August, the plaintiff to:

The defendant sent a Purchase Order to the defendant to deliver 1,500 tons of product in September, but in September-October 2024

During this period, the quantity delivered by the defendant was much lower than the quantity agreed in the order, and the defendant still did not fulfill the delivery obligation after being urged by the plaintiff.

Defendants 4 Nan Jinxi, 5 Nan Dongdong and 6 Nan Tian issued a Letter of Guarantee to the plaintiff, providing the plaintiff with an irrevocable joint and several liability guarantee for the defendant's performance of contractual obligations and responsibilities with all their personal property, with a guarantee period of one year and a maximum guarantee amount of RMB 500 million.

As of January 3, 2025, the defendant has not fulfilled its delivery obligations and is more than 30 days overdue, the plaintiff has

The plaintiff has the right to terminate the agreement according to the agreement, require the defendant to return the advance payment and pay liquidated damages, and the plaintiff files a lawsuit with the court in accordance with the law in order to protect its legitimate rights and interests.

(3) Litigation demands

1. Order the rescission of the Lithium Carbonate Procurement Framework Agreement signed between the plaintiff and the defendant;

2. Defendants 1, 2 and 3 were ordered to return the advance payment of RMB 118,559,248.93 and pay liquidated damages of RMB 53,224,561.47 to Plaintiff 1, totaling RMB 171,783,810.40;

3. Defendants 1, 2 and 3 were ordered to return the advance payment of RMB 2,969,710.8 to Plaintiff 2 and pay liquidated damages of RMB 10,105,012.27, totaling RMB 13,074,723.07;

4. Order defendants 1, 2 and 3 to bear the litigation costs of the case;

5. Defendants 4, 5 and 6 are ordered to be jointly and severally liable for the liquidation of defendants 1, 2 and 3.

The total amount of the above expenses is $184,858,533.47.

3. The impact of this lawsuit on the company

In accordance with the principle of prudence and accounting standards, the company has made a provision for bad debts of 122 million yuan (unaudited) for this litigation matter in the 2024 annual performance forecast, and the specific and accurate financial data are subject to the results of the annual audit confirmation of the audit institution. In view of the fact that the litigation case has not yet been tried in court, and the impact of the litigation on the company's current and future profits is uncertain, the company will fulfill its information disclosure obligations in a timely manner according to the progress of the litigation of the case, and investors are advised to pay attention to investment risks.

The announcement is hereby made.

Board of Directors of Minmetals New Energy Materials (Hunan) Co., Ltd

January 25, 2025