Henan Wandi Minerals Public Company LTD

Annual / Quarterly Financial Statement • Apr 24, 2023

REPORT AND FINANCIAL STATEMENTS 31 December 2022

15 Agion Omologiton Street 1080, Nicosia Cyprus

HE 385760

REPORT AND FINANCIAL STATEMENTS

The Management Report, the Auditor's report and the Financial Statements of the company for the year ended 31 December 2022 are true copies of those presented at the Annual General Meeting that took place on 24 April 2023.

ANY LTD Signature ................................................................... Maria Polyviou on 37 Director 0 Millia Signature .................................................................................................................................................................... 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 Andreas Karamanos Secretary

REPORT AND FINANCIAL STATEMENTS 31 December 2022

CONTENTS	PAGE
Board of Directors and other officers	1
Management Report	2 - 3
Independent auditor's report	4 - 6
Statement of profit or loss and other comprehensive income	7
Statement of financial position	8
Statement of changes in equity	9
Cash flow statement	10
Notes to the financial statements	11 - 15

BOARD OF DIRECTORS AND OTHER OFFICERS

Registration number:

Board of Directors:	Obaid Azib - Resigned 15 of April 2020 Ding-Shin Chang -Resigned 2 of November 2020 Andreas Karamanos -Appointed 15 of April 2020 Rena Afami -Resigned 20 of April 2021 Maria Polyviou -Appointed 7 of December 2020 Antzelina Ftanou - Appointed 20 of April 2021
Company Secretary:	Andreas Karamanos - Appointed 15 of April 2020 Obaid Azib - Resigned 15 of April 2020
Independent Auditors:	Ekkeshis Ierodiakonou Ltd Certified Public Accountants and Registered Auditors 39 Themistocies Dervis Street Office 102
Registered office:	15 Agion Omologiton Street 1080, Nicosia Cyprus

HE385760

1

MANAGEMENT REPORT

The Board of Directors presents its report and audited financial statements of the Company for the year ended 31 December 2022.

Principal activities and nature of operations of the Company

The Company is a holding company with no participations in the period under review.

Review of current position, future developments and performance of the Company's business

The results of this year are not considered satisfactory and the Board of Directors is making an effort to reduce the Company's losses. Despite the loss this year the Company's development to date and the financial position as reflected in the financial statements are satisfactory.

Principal risks and uncertainties

The principal risks and uncertainties faced by the Company are disclosed in notes 6, 7 and 14 of the financial statements.

Use of financial instruments by the Company

The Company is exposed to interest rate risk, credit risk from the financial instruments it holds.

Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Company's income and operating cash flows are substantially independent of changes in market interest rates as the Company has no significant interest-bearing assets. The Company is exposed to interest risk in relation to its non-current borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. The Company's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by falling to meet an obligation. Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost, at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL), favourable derivative financial instruments and deposits with banks and financial institutions.

Credit risk is managed on a group basis. For banks and financial institutions, the Company has established policies whereby the majority of bank balances are held with independently rated parties with a minimum rating of ['C'].

The Company's investments in debt instruments are considered to be fow risk investments. The credit ratings of the investments are monitored for credit deterioration.

Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Company has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

Share capital

There were no changes in the share capital of the Company during the year under review.

MANAGEMENT REPORT

Board of Directors

The members of the Company's Board of Directors as at 31 December 2022 and at the date of this report are presented on page 1. Mr Obaid Azib who was appointed director at the date of incorporation resigned on 15 April 2020 and on the same date Mr Andreas Karamanos was appointed in his place. Mr Ding - Shin Chang who was appointed director at the date of incorporation resigned on 2 November 2020 and on the same date Mrs Rena Afami was appointed in his place. Mrs Rena Afami who was appointed director on 2 November 2020 resigned on 20 April 2021 and on the same date Mrs Antzelina Ftanou was appointed in her place. Mrs Maria Polyviou was appointed director on 7 December 2020.

In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.

There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.

Independent Auditors

The Independent Auditors, Ekkeshis Ierodiakonou Ltd, have expressed their willingness to continue in office and a resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the Annual General Meeting.

By order of the Board of Directors,

rr Andreas Karamanos Secretary BANIN TONY Nicosia, 24 April 2023

3

Independent Auditor's Report

To the Members of Henan Wandi Minerals Public Company Ltd

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Henan Wandi Minerals Public Company Ltd (the "Company"), which and the we nave addited the minister statement of financial position as at . 11 December the vent the presenced in pages 7 to 25 and other comprehensive income, changes in equity and cash flows for the year then statements or promo of first of first including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the In our opinion, the accompanying himnial performance and its cash flows for the year the ended in Company as at 31 December 2022, and of tarked portugited by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities under We condicted our adult in accordance with "Auditor's Responsibilities for the Financial Statements"
those standards are further described in the "Auditor's Responsibilities I thisse Standards are further described in the Analicing with the International Ethis Standards Security of our report. We are macpondent of the Senior of increasing Accountants (including International Board ACCothiants International Code or Ethics For Frespirements that are relevant to our audit of the ma Independence Standards) (t.SDA Court War the Scheer ethical responsibilities in accordination in according Tinancal Statements in Cyprus, and WC Tax. Tan. For other our obtained is sufficient and appropriate to provide a basis for our opinion,

Other information

The Board of Directors is responsible for the other information comprises the information one auditors report thereon The Board of Directors is Tespotsible for the Other Information The Sthurnhall interests and our auditor's report thereon.
Included in the Management Report, but does not inc

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in In comecion with our addit of the information is materially incolnsistent with the financial statements or our doling 30, consider whener the octor in the materially misstated. If, based on the webridge have have have have knowledge obtained in the addit of Otherwise uppears to be matural, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors for the Financial Statements

The Board of Directors is responsible for the preparation of financial statements that give a true and fair view in The Board of Directors is responsible for the preparation of the European Union and the Reprd of Director accordance with International Thiancal Reporting Schanda Control as the Board of Directors requirements of the Cyprus Companies Law, Cap. 113, The Tor Back Internal Charles Communities and whether due to fraud or error.

Ekkeshis Ierodiakonou Ltd

³⁹ Themistocles Dervis Street, 1st floor, CY-1066 Nicosia, Cyprus, P.O. Box 26643, CY-1646 Nicosia, Cyprus T: +357 22466470 / F: +357 22766470 / Info@eicyprus.com / eicyprus.com

Elkeshis ledikonol Ltd I a prival company registered in Critical Statistics and ide at its registered 3 Thenistocks Devis Steet, ist Reg. CY-1066 Wools, Gyou

Independent Auditor's Report (continued)

To the Members of Henan Wandi Minerals Public Company Ltd

Responsibilities of the Board of Directors for the Financial Statements (continued)

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern basis of accounting unless the Board of Directors elther intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. matural massurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• of the Golfpar) a meethal ess of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting earlerate on the audit evidence obtained, whether a material uncertainty exists related to events or and, buscu on the uailt endense betal on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. related discussions in the mantha audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• fully overall presentation, structure and content of the financial statements, including the Evaluate the over the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.

We communicate with the Board of Directors regarding, among other matters, the planned scope identify on the wedit and significant audit finding any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal Requirements

Pursuant to the additional requirements of the Auditors Law of 2017, we report the following:

• In our opinion, the Management Report has been prepared in accordance with the requirements of the In 'our opinion't the Nanager is consistent with the financial statements.
• Cyplus Colipanies Larry Cap the knowledge and understanding of the Company and its environment In our opinion, and in the light of the have not identified material misstatements in the Management Report

Independent Auditor's Report (continued)

To the Members of Henan Wandi Minerals Public Company Ltd

Other Matter

This report, Including the opinion, has been prepared for and only for the Company's members as a body in accordance with Section 69 of the Auditors Law of 2017 and for no other purpose. We do not, In giving this opinion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to

JDIAK istantinos Ekkeshis Centified Public Accountant and Registered Auditor for and on beliati of Ekkeshis terodiakonou Ltd

Nicosia, 24 April 2023

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 31 December 2022

	Note	2022 €	2021 ਵ
Administration expenses		(4,839)	(4,985)
Operating loss		(4,839)	(4,985)
Finance costs	ರಿ	(185)	(2)
Net loss for the year		(5,024)	(4,987)
Other comprehensive income
Total comprehensive income for the year		(5,024)	(4,987)

STATEMENT OF FINANCIAL POSITION

31 December 2022

	Note	2022 ਵ	2021 €
Current assets Receivables Cash at bank	10 11	1,289 1,289	942 1,498 2,440
Total assets		1,289	2,440
EQUITY AND LIABILITIES
Equity Share capital Accumulated losses	12	26,000 (30,824)	26,000 (25,800)
Total equity		(4,824)	200
Current liabilities Trade and other payables	13	6,113 6,113	2,240 2,240
Total equity and liabilities		1,289	2,440

On 24 April 2023 the Board of Directors of Henan Wandi Minerals Public Company Ltd authorised these financial statements for issue.

Andreas Karamanos Director

Maria Polyviou Director

Antzelina Ftanou-Director

STATEMENT OF CHANGES IN EQUITY

31 December 2022

	Share capital ਵ	Accumulated osses 5	Total e
Balance at 1 January 2021 Net loss for the year	26,000	(20,813) (4,987)	5,187 (4,987)
Balance at 31 December 2021/ 1 January 2022	26,000	(25,800)	200
Comprehensive income Net loss for the year		(5.024)	(5,024)
Balance at 31 December 2022	26,000	(30,824)	(4,824)

Companies, which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, within two years after the end of the relevant tax year, will be deemed to have distributed this amount as dividend on the 31 of December of the amount of the deemed dividend distribution is reduced by any actual dividend already distributed by 31 December of the year the profits relate. The Company pays special defence contribution on behalf of the shareholders over the amount of the deemed dividend distribution at a rate of 17% (applicable since 2014) when the entitled shareholders are natural persons tax residents of Cyprus and have their domicile in Cyprus. In addition, the Company pays on behalf of the shareholders General Healthcare System (GHS) contribution at a rate of 2,65%, when the entitled shareholders are natural persons tax residents of Cyprus, regardless of their domicile.

CASH FLOW STATEMENT 31 December 2022

	2022 至	2021 €
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax	(5,024)	(4,987)
	(5,024)	(4,987)
Changes in working capital:
Decrease in receivables	942	14,135
Increase/(Decrease) in trade and other payables	3,873	(7,650)
Cash (used in)/generated from operations	(209)	1,498
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease)/increase in cash and cash equivalents	(209)	1,498
Cash and cash equivalents at beginning of the year	1,498
Cash and cash equivalents at end of the year	1,289	1.498

NOTES TO THE FINANCIAL STATEMENTS

31 December 2022

1. Incorporation and principal activities

Country of incorporation

The Company Henan Wandi Minerals Public Company Ltd (the "Company") was incorporated in Cyprus on 02 July 2018 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. Its registered office is at 15 Agion Omologiton Street, 1080, Nicosia, Cyprus.

Principal activities

The Company is a holding company with no participations in the period under review.

2. Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. The financial statements have been prepared under the historical cost convention.

3. Adoption of new or revised standards and interpretations

During the current year the Company adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2022. This adoption did not have a material effect on the accounting policies of the Company,

4. Significant accounting policies

The principal accounting policies adopted in the preparation of these financial statements are areast province aread r no principal decediting polied to all years presented in these financial statements unless otherwise stated.

Finance costs

Interest expense and other borrowing costs are charged to profit or loss as incurred.

Share capital

Ordinary shares are classified as equity.

5. New accounting pronouncements

At the date of approval of these financial statements, standards and interpretations were issued by the Europan Union Furenational Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and Accounting other and of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the financial statements of the Company.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2022

6. Financial risk management

Financial risk factors

The Company is exposed to interest rate risk, credit risk arising from the financial instruments it holds. The risk management policies employed by the Company to manage these risks are discussed below:

6.1 Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. The Company's income and operating cash flows are substantially independent of changes in market interest rates as the Company has no significant interest-bearing assets. The Company is exposed to interest rate risk in refation to its non-current borrowings issued at variable rates expose the Company to cash flow interest rate risk. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. The Company's Management monitors the interest rate fluctuations on a continuous basis and acts accordingly.

6.2 Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost, at fair value through other comprehensive income (FVOCI) and at fair value through profit or loss (FVTPL), favourable derivative financial instruments and financial institutions.

6.3 Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Company has procedures with the object of minimising such losses such as maintalning sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

7. Critical accounting estimates, judgments and assumptions

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Going concern basis

Management has made an assessment of the Company's ability to continue as a going concern.

8. Expenses by nature

	2022	2021
Auditors' remuneration	€ 700	€
Other expenses	4,139	4,985
Total expenses	4,839	4,985
9. Finance costs
	2022	2021
	(	€
Sundry finance expenses	185	2
Finance costs	185	C

NOTES TO THE FINANCIAL STATEMENTS 31 December 2022

10. Receivables

	2022	2021
	程
Shareholders' current accounts - debit balances (Note 15.1)		942
		942

The fair values of receivables due within one year approximate to their carrying amounts as presented above.

The exposure of the Company to credit risk and impairment losses in relation to receivables is reported in note 6 of the financial statements.

11. Cash at bank

Cash balances are analysed as follows:

	2022	2021
	程	ڪ
Cash at bank	1,289	1.498
	1,289	.498

The exposure of the Company to credit risk and impairment losses in relation to cash and cash equivalents is reported in note 6 of the financial statements.

12. Share capital

	2022 Number of shares	2022 e	2021 Number of shares	2021 ﻟﻠﻠ
Authorised Ordinary shares of €1. each	26,000	26,000	26,000	26,000
Issued and fully paid Balance at 1 January	26,000	26,000	26,000	26,000
Balance at 31 December	26,000	26,000	26,000	26,000

Authorised capital

Under its Memorandum the Company fixed its share capital at 26000 ordinary shares of nominal value of €1 each.

Issued capital

Upon incorporation on 02 July 2018 the Company issued to the subscribers of its Memorandum of Association 26,000 ordinary shares of €1 each at par.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2022

13. Trade and other payables

	2022	2021
	(1
Shareholders' current accounts - credit balances (Note 15.2)	248
Accruals	2,101	2,240
Other creditors	3,764
	6,113	2,240

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

14. Operating Environment of the Company

The geopolitical situation in Eastern Europe intensified on 24 February 2022 with the commencement of the conflict between Russia and Ukraine. As at the date of authorising these financial statements for issue, the conflict continues to evolve as military activity proceeds. In addition to the events on entities that have operations in Russia, Ukraine, or Belarus or that conduct business with their counterparties, the conflict is increasingly affecting economies and financial markets globally and exacerbating ongoing economic challenges.

The European Union as well as United States of America, Switzerland, United Kingdom and other countries imposed a series of restrictive measures (sanctions) against the Russian government, various companies, and certain individuals. The sanctions imposed include an asset freeze and a prohibition from making funds available to the sanctioned individuals and entities. In addition, travel bans applicable to the sanctioned individuals prevents them from entering or transiting through the relevant territories. The Republic of Cyprus has adopted the United Nations and European Union measures. The rapid deterioration of the conflict in Ukraine may as well lead to the possibility of further sanctions in the future.

Emerging uncertainty regarding global supply of commodities due to the conflict between Russia and Ukraine conflict may also disrupt certain global trade flows and place significant upwards pressure on commodity prices and input costs as seen through early March 2022. Challenges for companies may include availability of funding to ensure access to raw materials, ability to finance margin payments and heightened risk of contractual non-performance.

The impact on the Company largely depends on the nature and duration of uncertain and unpredictable events, such as further military action, additional sanctions to ongoing developments by global financial markets.

The financial effect of the current crisis on the global economy and overall business activities cannot be estimated with reasonable certainty at this stage, due to the pace at which the conflict prevails and the high level of uncertainties arising from the inability to reliably predict the outcome.

The event did not exist in the reporting period and is therefore not reflected in the recognition and measurement of the assets and liabilities in the financial statements as at 31 December 2022 as it is considered as a non-adjusting event.

The Company has limited direct exposure to Russia, Ukraine, and as such does not expect significant impact from direct exposures to these countries.

Despite the limited direct exposure, the conflict is expected to negatively impact the tourism and services industries in Cyprus. Furthermore, the increasing energy prices, fluctuations in foreign exchange rates, unease in stock market trading, rises in interest rates, supply chain disruptions and intensified inflationary pressures may indirectly impact the operations of the Company. The indirect implications will depend on the extent and duration of the crisis and remain uncertain.

Management has considered the unique circumstances and the risk exposures of the Company and has conduded that there is no significant impact in the Company's profitability position. The event is not expected to have an immediate material impact on the business operations. Management will continue to monitor the situation closely and will assess the need for [please complete accordingly] in case the crisis becomes prolonged.

NOTES TO THE FINANCIAL STATEMENTS 31 December 2022

15. Related party transactions

The following transactions were carried out with related parties:

15.1 Shareholders' current accounts - debit balances (Note 10)

	2022	2021
	ਵ	ਵ
Shareholders		ರ್ಕೆ 2
		942

The directors'/shareholders' current accounts are interest free, and have no specified repayment date.

15.2 Shareholders' current accounts - credit balances (Note 13)

	2022	2021
	ਦ	는
Shareholders	248
	248

The directors'/shareholders' current accounts are interest free, and have no specified repayment date.

16. Contingent liabilities

The Company had no contingent liabilities as at 31 December 2022.

17. Commitments

The Company had no capital or other commitments as at 31 December 2022.

18. Events after the reporting period

There were no material events after the reporting period, which have a bearing on the financial statements.

As explained in note 14 the geopolitical situation in Eastern Europe intensified on 24 February 2022, with the commencement of the conflict between Russia and Ukraine. As at the date of authorising these financial statements for issue, the conflict continues to evolve as military activity proceeds and additional sanctions are imposed.

Independent auditor's report on pages 4 to 6