Ganfeng Lithium Group Co., Ltd. — Capital/Financing Update 2019

Mar 7, 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

==> picture [238 x 90] intentionally omitted <==

(A joint stock company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 1772)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to the disclosure requirements under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

According to the relevant regulations of the People’s Republic of China, GANFENG LITHIUM CO., LTD. (the “ Company ”) had published “Announcement in relation to Investment in Wealth Management Products with Self-Owned Funds” on the website of the Shenzhen Stock Exchange (http://www.szse.cn/). The following is a translation of the official announcement solely for the purpose of providing information.

By order of the Board GANFENG LITHIUM CO., LTD. LI Liangbin Chairman

Jiangxi, PRC March 8, 2019

As at the date of this announcement, the Board comprises Mr. LI Liangbin, Mr. WANG Xiaoshen, Mr. SHEN Haibo, Ms. DENG Zhaonan and Mr. XU Xiaoxiong as executive directors of the Company; Mr. HUANG Daifang as non-executive director of the Company; and Mr. GUO Huaping, Mr. HUANG Huasheng, Mr. LIU Jun and Ms. WONG Sze Wing as independent non-executive directors of the Company.

==> picture [127 x 24] intentionally omitted <==

Stock Code: 002460 Stock Name: Ganfeng Lithium No.: Lin 2019-012

GANFENG LITHIUM CO., LTD.

ANNOUNCEMENT IN RELATION TO INVESTMENT IN WEALTH MANAGEMENT PRODUCTS WITH SELF-OWNED FUNDS

The Company and all members of its board of directors warrant that the information contained in this announcement is true, accurate and complete and that there are no false representations or misleading statements contained in or material omissions from this announcement.

At the 29th meeting of the fourth session of the board of directors of Ganfeng Lithium Co., Ltd. (the “Company”) held on March 7, 2019, the Resolution in Relation to Investment in Wealth Management Products with Self-owned Funds was considered and approved, pursuant to which the Company and its subsidiaries covered within the scope of the consolidated statements of the Company were approved to invest in wealth management products with high security, strong liquidity and guaranteed principal with self-owned funds of not more than RMB500 million in order to improve the utilisation efficiency of self-owned funds provided that the normal operation, production and construction of the Company would not be affected. Such funds can be utilised on a rolling basis during the validity period of the resolution.

According to relevant provisions of the articles of association, the matter is still subject to consideration at the general meeting of the Company. Particulars are set out as follows:

I. OVERVIEW OF THE INVESTMENT

1. Purpose of the investment

To improve the utilisation efficiency of self-owned funds of the Company and increase the Company’s gain on investment provided that the normal operation, production and construction of the Company would not be affected.

==> picture [127 x 24] intentionally omitted <==

2. Investment amount

The amount of funds to be used shall not exceed RMB500 million. Within such limit, the funds can be used on a rolling basis, and the balance of self-owned funds to be invested shall not exceed RMB500 million at any time. The actual amount to be used for purchase of wealth management products shall be subject to adjustments based on the actual status of the Company's self-owned funds.

3. Investment categories

The categories to be invested shall be short-term wealth management products with low risk, fixed income or guaranteed principal, the issuers of which are commercial banks and other financial institutions other than commercial banks. The above categories do not fall within the scope of venture capital covered by Chapter VII, Section 1: Venture Capital of the Guidelines for the Standardised Operation of Companies Listed on the Small and Medium-sized Enterprise Board.

4. Investment term

The investment shall be effective for twelve months commencing from the date of approval at the general meeting of the Company.

5. Sources of funds

The investment shall be financed by the self-owned funds of the Company.

6. Implementation method

The Chairman of the Board of Directors of the Company shall be authorised, within the amount limit, to exercise the decision-making rights and execute relevant contractual documents in relation to the investment, including but not limited to selecting suitable issuers of wealth management products, specifying the wealth management amount and duration time, choosing the categories of wealth management products, executing contracts and agreements, etc.

II. IMPACT ON THE DAILY OPERATION OF THE COMPANY

1. The purchase of short-term principal-guaranteed wealth management products by the Company with self-owned funds are made on the premise that the necessary funds for the production and operation of the Company are guaranteed and the self-owned funds are secured. Therefore, neither the turnover of daily working capital nor the normal development of the principal business of the Company will be affected.

==> picture [127 x 24] intentionally omitted <==

1. Appropriate investment in short-term principal-guaranteed wealth management products enables the Company to reap certain investment benefits and further enhance its overall performance, thereby generating greater returns on investment for the shareholders of the Company.

III. INVESTMENT RISKS AND RISK CONTROL

1. Investment risks

In spite of the low-risk investment attribute of wealth management products, the financial market is highly susceptible to the macro-economy. Therefore, the company will invest according to the economic situation and changes in the financial market in a timely and appropriate manner, but does not rule out that the investment may be affected by market fluctuations.

2. The Company intends to take the following measures in response to the investment risks:

(1) The specific investments shall be made by the management after being approved by the Chairman of the Board of Directors of the Company with relevant contracts signed by the same. The department responsible for specific implementation shall make timely analysis on and keep track of the wealth management product investment target and project progress. Where there is any risk factor likely to impact the capital security of the Company after assessment, corresponding measures will be taken immediately to control investment risks.

(2) The audit department will carry out prior review, in-process supervision and post audit on the short-term wealth management business of the Company. The audit department is responsible for reviewing the approval, actual operation, capital utilisation and the profits and losses in relation to the wealth management business, urging the finance department into dealing with relevant accounts in a timely manner and conducting verification on the accounting treatment.

==> picture [127 x 24] intentionally omitted <==

(3) The independent directors and the board of supervisors shall have the rights to supervise and inspect the capital utilisation and be allowed to engage professional institutions for audit when necessary.

(4) The Company will disclose its investment in wealth management products in details during the reporting period in the periodical reports in accordance with the requirements of the regulatory authorities.

IV. APPROVAL PROCEDURES

The Resolution in Relation to Investment in Wealth Management Products with Selfowned Funds was considered and approved at the 29th meeting of the fourth session of the board of directors of the Company held on March 7, 2019. Pursuant to relevant provisions of the articles of association, the matter is still subject to consideration at the general meeting of the Company.

V. IMPACT ON THE COMPANY

1. The Company's investment in principal-guaranteed wealth management products with self-owned funds aims to improve the capital utilisation efficiency of the Company and increase the income from cash assets. As such investment is made without influence on the utilisation of working capital for its daily operations, the normal development of the Company’s principal business will not be affected.

2. Timely cash management of the temporarily idle self-owned funds through appropriate investment in low-risk short-term wealth management products enables the Company to reap certain investment benefits, which is conducive to further improving its overall performance and seeking better returns on investment for the Company and its shareholders.

VI. OPINIONS OF THE BOARD OF SUPERVISORS

==> picture [127 x 24] intentionally omitted <==

The Company's investment in principal-guaranteed wealth management products with selfowned funds aims to improve capital utilisation efficiency of the Company and increase the income from cash assets. As such investment is made without influence on the utilisation of working capital for its daily operations, it will neither affect the normal development of the Company’s principal business, nor do harm to the interests of the Company and its shareholders as a whole, especially the minority shareholders. In view of the above, we agree on the Company's investment in wealth management products with high security, strong liquidity and guaranteed principal with self-owned funds of not more than RMB500 million.

VII. OPINIONS OF THE INDEPENDENT DIRECTORS

The Company and its subsidiaries currently enjoy a sound financial standing and have sufficient self-owned funds. On condition that the demands for daily working capital of the Company and its subsidiaries are satisfied and the capital is secured, investment in wealth management products by the Company with the self-owned funds is beneficial for the Company in improving its utilisation rate of the self-owned funds and increasing its income from the self-owned funds, will have neither adverse impact on the operating activities of the Company nor prejudice to the interests of the Company and its shareholders as a whole, especially the minority shareholders, and is in the interest of the Company and the shareholders as a whole. In view of the foregoing, we agree on the investment in wealth management products made by the Company and its subsidiaries with the self-owned funds in the amount of not more than RMB500 million.

VIII. DOCUMENTS AVAILABLE FOR INSPECTION

1. Resolution of the 29th meeting of the fourth session of the board of directors of the Company;

2. Resolution of the 19th meeting of the fourth session of the Supervisory Committee of

==> picture [127 x 24] intentionally omitted <==

the Company; and

1. Independent opinions in relation to the matters issued by the independent directors.

The announcement is hereby given.

The board of directors Ganfeng Lithium Co., Ltd. March 8, 2019