Ganfeng Lithium Group Co., Ltd. — Interim / Quarterly Report 2021

Oct 26, 2021

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 [237 x 91] intentionally omitted <==

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

(Stock Code: 1772)

INSIDE INFORMATION/OVERSEAS REGULATORY ANNOUNCEMENT 2021 THIRD QUARTERLY REPORT

This announcement is made pursuant to the disclosure obligations under Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

IMPORTANT NOTICE:

1. The board of directors (the “ Board ”) and the supervisory committee of Ganfeng Lithium Co., Ltd. (the “ Company ”) as well as its directors, supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in the quarterly report, and warrant that there are no false representations or misleading statements contained in or material omissions from this report and severally and jointly accept legal responsibility pursuant to such information.

2. Li Liangbin, chairman of the Company, Yang Manying, the person in charge of the Company’s accounting functions, and Huang Ting, the head of the Company’s accounting department (person in charge of accounting) have declared that they guarantee the truthfulness, accuracy and completeness of the financial information in the quarterly report.

3. Has the third quarterly report been audited

Yes ✓ No

– 1 –

I. KEY FINANCIAL DATA

(I) Key Accounting Data and Financial Indicators

Whether retroactive adjustments or restatements would be made by the Company to the accounting data for the previous years

Yes ✓ No

						Increase/decrease
						for the beginning
		Increase/				of the year till
		decrease	for the	From the		the end of the
		reporting period		beginning of the		reporting period
		compared with		year till the	end	compared with
	The reporting	the corresponding		of the reporting		the corresponding
	period	period of last year		period		period of last year
Operating income (RMB)	2,989,477,093.56		98.50%	7,053,758,123.88		81.19%
Net profit attributable to shareholders
of the listed company (RMB)	1,056,140,514.99	506.99%		2,472,792,255.27		648.24%
Net profit attributable to shareholders of the
listed company after deduction of
non-recurring gains and losses (RMB)	592,560,910.63	538.50%		1,427,888,900.63		435.58%
Net cash flow from operating activities
(RMB)	–		–	927,936,788.00		361.41%
Basic earnings per share (RMB/share)	0.73	461.54%			1.77	608.00%
Diluted earnings per share (RMB/share)	0.73	461.54%			1.77	608.00%
Weighted average rate of return on net assets	7.18%		5.32%	16.80%		13.26%
					Increase/decrease
						at the end of the
						reporting period
	As at	the end of		As at the end		compared with
	the reporting period			of last year	the end of last year
Total assets (RMB)	33,889,599,470.42		22,020,373,319.53			53.90%
Owner’s equity attributable to shareholders
of the listed company (RMB)	19,327,056,765.23		10,705,622,439.84			80.53%

– 2 –

(II) Non-recurring gains and losses items and amounts

✓ Yes No

Unit: RMB

Items Gains or losses on disposal of non-current assets (including the written-off portion of provisions for asset impairment) Government grants (except for government grants which are closely related to the Company’s normal business, in line with national policies and regulations and conform with the amount and quantities at a certain standard) charged to gains or losses for the current period Gains or losses on change in fair value arising from financial assets held for trading and financial liabilities held for trading, investment gains from disposal of financial assets held for trading, financial liabilities held for trading, and financial assets available for sale, other than effective hedging activities associated with normal business operations of the Company Other non-operating income and expenses apart from the items stated above Less: Effect on income tax Total	Amount for the reporting period -4,558,652.89 12,641,528.05 457,462,997.83 -2,682,566.40 -716,297.77 463,579,604.36	Amount for the period from the beginning of the year to the end of the reporting period Explanation -4,420,916.48 31,196,168.14 1,026,483,254.92 It is mainly the gain from changes in fair value of financial assets held in the reporting period -2,930,316.25 5,424,835.69 1,044,903,354.64

Details of other gains or losses items within the definition of non-recurring gains and losses:

Yes ✓ No

– 3 –

No other gains or losses items were defined as non-recurring gains and losses.

Notes for the non-recurring gains or losses items as listed in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 – Non-recurring Gains or Losses defined as the recurring gains or losses items

==> picture [128 x 15] intentionally omitted <==

No non-recurring gains or losses items as defined and illustrated in the Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No. 1 – Non-recurring Gains or Losses were defined as recurring gains or losses items for the Company.

(III) Circumstances for changes in key accounting data and financial indicators and the reasons thereof

✓ Yes No

Unit: RMB

	September 30,	December 31,	Percentage
Balance Sheet Items	2021	2020	of changes	Reasons for changes
Monetary fund	7,467,131,948.68	2,175,589,944.30	243.22%	The change was mainly because the
				proceeds raised from the new H
				share placement of the Company
				and the funds of the introduction
				of the industrial investors to the
				subsidiary Ganfeng LiEnergy
				had been received
Financial assets held for trading	465,245,761.08	87,116,871.37	434.05%	The change was mainly due to
				the purchase of bank financial
				products in the current period
Accounts receivable	1,836,049,478.59	1,358,805,453.61	35.12%	The change was mainly due to the
				increase in accounts receivable
				resulting from the increase in
				revenue in the current period
Accounts receivable financing	1,009,402,381.36	409,189,128.15	146.68%	The change was mainly due to the
				increase in bank notes received
				resulting from the increase in
				sales volume

– 4 –

	September 30,	December 31,	Percentage
Balance Sheet Items	2021	2020	of changes	Reasons for changes
Other current assets	674,723,559.94	1,951,968,579.49	-65.43%	The change was mainly due to the
				transfer-out of the term deposit
Long-term receivables	39,755,273.61	390,771.27	10073.54%	The change was mainly due to
				the disposal of certain equity of
				Minera Exar S.A in the current
				period, and the discounted future
				consideration receivable has
				been accounted in this subject
Long-term equity investments	2,398,260,132.86	1,636,336,501.60	46.56%	The change was mainly due to
				the increase in investments of
				Bacanora and Sonora
Debenture investments	30,861,842.45	–		The change was mainly due to the
				increase of bank term deposit of
				more than one year
Other non-current financial	1,951,447,890.90	879,587,367.11	121.86%	The change was mainly due to the
assets				rise in stock price of Pilbara and
				the investment such as Jiujiang
				Defu
Development expenses	–	24,839,514.08	-100.00%	The change was mainly because
				the pilot production line of
				research and development
				for first generation solid state
				lithium battery entered into
				trial production, and have been
				recognized as intangible assets in
				the current period
Goodwill	36,110,758.90	–		The change was mainly due to the
				acquisition of Huichuang New
				Energy in the current period
				results in the additional goodwill
Deferred income tax assets	131,517,740.48	40,363,430.42	225.83%	The change was mainly due to the
				change in temporary differences
				in income tax in the current
				period, resulting from the
				increase in the share incentive
				expenses, the redemption of
				convertible bonds, etc

– 5 –

	September 30,	December 31,	Percentage
Balance Sheet Items	2021	2020	of changes	Reasons for changes
Other non-current assets	2,832,482,260.34	971,701,741.13	191.50%	The change was mainly due to
				the additional investments in
				Yili Hongda and Jintai Potassic
				Fertilizer in the current period
Bills payable	1,086,869,851.51	230,321,752.90	371.89%	The change was mainly due to the
				increasing usage of the bank
				notes payables for the payment
				for raw materials in the current
				period
Contract liabilities	185,812,902.01	41,033,419.17	352.83%	The change was mainly due to
				the increase of advances in the
				current period
Staff salaries payable	52,649,667.94	79,053,831.36	-33.40%	The change was mainly because the
				year-end bonus accrued at the
				end of the last year have been
				paid during the current period
Taxes payable	391,943,513.15	131,598,264.62	197.83%	The change was mainly due to
				the increase of the scale and
				performance of operation, and
				the relevant taxes increased in
				the current period
Other payables	144,216,285.27	82,747,359.18	74.29%	The change was mainly due to the
				increase of the bid deposit for the
				relevant projects of the Company
Non-current liabilities due	1,446,717,798.92	669,689,684.00	116.03%	The change was mainly due to
within one year				the increase of long-term bank
				borrowings due within one year
Long-term borrowings	3,017,577,360.00	1,658,008,360.00	82.00%	The change was mainly due to the
				increase of the project loans of
				Huizhou Ganfeng and Ganfeng
				Battery Phase II, the acquisition
				loan of Ganfeng Battery, and
				the working capital loan of more
				than one year in the current
				period

– 6 –

	September 30,	December 31,	Percentage
Balance Sheet Items	2021	2020	of changes	Reasons for changes
Bonds payables	–	2,133,824,297.91	-100.00%	The change was mainly due to the
				redemption of the convertible
				bonds
Long-term payables	797,214,092.30	541,730,051.02	47.16%	The change was mainly due to the
				increase of financial assistance
				payable of Minera Exar S.A. to
				LAC in the current period
Deferred income	90,797,316.35	64,358,892.00	41.08%	The change was mainly due to the
				increase in government grants
				related to assets received for the
				current period
Deferred income tax liabilities	18,261,196.79	63,837,415.94	-71.39%	The change was mainly due to the
				change in temporary differences
				in income tax in the current
				period
Other equity instruments	–	582,380,688.55	-100.00%	The change was mainly due to the
				redemption of convertible bonds
Capital reserve	11,941,451,672.86	4,842,886,594.85	146.58%	The change was mainly due to the
				increase in the capital reserve
				resulting from the conversion
				of convertible bonds and the
				issuance of additional H shares
Undistributed profits	5,847,784,860.66	3,791,822,949.39	54.22%	The change was mainly due to the
				increase of profits in the current
				year
Minority interests	4,097,575,510.14	2,712,780,922.60	51.05%	The change was mainly due to
				the introduction of strategic
				investors of Ganfeng LiEnergy,
				resulting in the increase in
				minority interests

– 7 –

	September 30,	September 30,	Percentage of
Income statement items	2021	2020	changes	Reasons for changes
Operating income	7,053,758,123.88	3,892,964,913.58	81.19%	The change was mainly due to
				the 10,000 ton lithium salt
				reconstruction and expansion
				project (phase III) reaches
				production capacity, and the
				increase in the volume and price
				of the lithium salt products in
				the current period
Operating costs	4,546,330,735.40	3,160,477,140.55	43.85%	The change was mainly due to the
				increase in operating income
				results in the increase in the
				operating costs accordingly
Tax and surcharge	44,482,465.17	13,680,799.77	225.15%	The change was mainly due to the
				increase of relevant taxes as a
				result of increase in operating
				income in the current period;
Administrative expenses	283,788,469.95	99,342,820.29	185.67%	The change was mainly due to
				the increase of share incentives
				expenses
Research and development	201,017,622.29	78,215,091.69	157.01%	The change was mainly due to
expenditure				the increase in research and
				development expenses in the
				current period
Finance expenses	148,590,910.53	73,051,549.53	103.41%	The change was mainly due to the
				increase of bank loan interests
				and exchange-losses in the
				current period
Other revenue	31,196,168.14	66,943,096.83	-53.40%	The change was mainly due to the
				decrease in government grants
				related to revenue in the current
				period
Investment income	18,852,804.75	44,551,803.64	-57.68%	The change was mainly due to the
				change in profit of associates in
				the current period
Gain on change in fair value	993,762,361.70	-9,784,890.35	10256.09%	The change was mainly due to the
				rise in stock price of financial
				assets held
Impairment loss of credit	-7,729,710.34	-101,430,944.50	92.38%	The change was mainly due to the
(“-” denotes loss)				decrease in trade receivables
				impairment losses in the current
				period

– 8 –

	September 30,	September 30,	Percentage of
Income statement items	2021	2020	changes	Reasons for changes
Impairment loss of assets	-4,473,585.38	-10,228,171.70	56.26%	The change was mainly due to the
(“-” denotes loss)				increase of the net realizable
				value as a result of the rising
				price of inventories such as
				lithium carbonate
Gains on disposal of assets	-238,152.84	-1,298,232.34	81.66%	The change was mainly due to the
				decrease of the losses of the
				fixed assets disposed directly
				during the current period
Non-operating income	653,455.73	1,350,795.33	-51.62%	The change was mainly due to
				the decrease of revenues which
				are not related to the operating
				activities during the current
				period
Non-operating expense	7,766,535.62	3,105,903.47	150.06%	The change was mainly due to
				the increase of payments, such
				as the donation to Henan and
				the losses from the disposal of
				abandoned assets
Income tax expenses	274,356,030.97	76,940,136.09	256.58%	The change was mainly due to
				increase of profit in the current
				period
	September 30,	September 30,	Percentage
Cash flow statement items	2021	2020	of changes	Reasons for changes
Net cash flow generated from	927,936,788.00	201,110,848.44	361.41%	The change was mainly due to the
operating activities				increase in cash received from
				selling goods and providing
				services in the current period
Net cash flow generated from	-2,683,294,134.64	-553,328,513.12	-384.94%	The change was mainly due to the
investing activities				increase in the long term equity
				investment, construction of fixed
				assets, and the cash paid for
				other long-term assets
Net cash flow generated from	7,010,063,164.56	3,107,720,509.59	125.57%	The change was mainly due to
financing activities				the fund raised from H share,
				fund raised from the industrial
				investors of LiEnergy, and the
				increase in bank borrowings in
				the current period

– 9 –

II. INFORMATION ON SHAREHOLDERS

(I) Total number of ordinary shareholders and preferred shareholders with voting rights resumed and shareholdings of the top ten shareholders

Unit: Shares

To tal number of ordinary	169,926 (A shares);	To tal number of preferred	0
shareholders at the end	26 (H shares)	shareholders with voting
of the reporting period		rights resumed at the end
		of the reporting period
		(if any)

Shareholdings of the top ten shareholders

				Number of	Shares pledged,	Shares pledged,
				shares held	marked or frozen
Name of	Nature of	Proportion of	Number of	subject to	Status of
shareholders	shareholders	shareholding	shares held	lock-up	shares	Number
HKSCC NOMINEES	Overseas legal person	20.05%	288,256,396	9,250
LIMITED			（Note 1）
Li Liangbin	Domestic natural person	18.80%	270,269,871	202,702,403	Pledged	54,200,000
Wang Xiaoshen	Domestic natural person	7.02%	100,898,904	100,898,904	Pledged	29,285,000
			（Note 2）
Hong Kong Securities	Overseas legal person	4.97%	71,425,281
Clearing Company
Limited
Huang Wen	Domestic natural person	0.81%	11,678,432
Industrial and Commercial	Other	0.78%	11,235,095
Bank of China Limited
– Central European
Pioneer Equity Initiative
Securities Investment
Fund (中國工商銀行
股份有限公司－中歐
時代先鋒股票型發起
式證券投資基金)
Shen Haibo	Domestic natural person	0.77%	11,083,568	8,312,676	Pledged	6,900,000

– 10 –

				Number of	Shares pledged,	Shares pledged,
				shares held	marked or frozen
Name of	Nature of	Proportion of	Number of	subject to	Status of
shareholders	shareholders	shareholding	shares held	lock-up	shares	Number
Industrial and Commercial	Other	0.67%	9,586,269
Bank of China Limited
– ABC-CA New
Energy Theme Flexible
Allocation Hybrid
Securities Investment
Fund (中國工商銀行
股份有限公司－農銀
匯理新能源主題靈活
配置混合型證券投資
基金)
China Construction Bank	Other	0.61%	8,729,901
Corporation – Huaxia
Energy Reform Equity
Securities Investment
Fund (中國建設銀行
股份有限公司－華夏
能源革新股票型證券
投資基金)
Industrial and Commercial	Other	0.42%	6,006,533
Bank of China Limited –
China Universal CSI New
Energy Industry Index-
based Initiative Securities
Investment Fund (LOF)
(中國工商銀行股份
有限公司－匯添富中
證新能源汽車產業指
數型發起式證券投資
基金(LOF))

– 11 –

Shareholdings of top ten shareholders holding shares without lock-up

	Number of
	shares held
	without	Class of shares
Name of shareholders	lock-up	Class of shares	Number
HKSCC NOMINEES LIMITED	288,247,146	Overseas listed	288,247,146
		foreign shares
Hong Kong Securities Clearing	71,425,281	Renminbi denominated	71,425,281
Company Limited		ordinary shares
Li Liangbin	67,567,468	Renminbi denominated	67,567,468
		ordinary shares
Wang Xiaoshen	25,224,726	Renminbi denominated	25,224,726
		ordinary shares
Huang Wen	11,678,432	Renminbi denominated	11,678,432
		ordinary shares
Industrial and Commercial Bank of	11,235,095	Renminbi denominated	11,235,095
China Limited – Central European		ordinary shares
Pioneer Equity Initiative Securities
Investment Fund (中國工商銀行
股份有限公司－中歐時代先鋒
股票型發起式證券投資基金)
Industrial and Commercial Bank of	9,586,269	Renminbi denominated	9,586,269
China Limited – ABC-CA New		ordinary shares
Energy Theme Flexible Allocation
Hybrid Securities Investment Fund
(中國工商銀行股份有限公司－
農銀匯理新能源主題靈活配置
混合型證券投資基金)
China Construction Bank Corporation	8,729,901	Renminbi denominated	8,729,901
– Huaxia Energy Reform Equity		ordinary shares
Securities Investment Fund (中國建
設銀行股份有限公司－華夏能
源革新股票型證券投資基金)
Industrial and Commercial Bank of	6,006,533	Renminbi denominated	6,006,533
China Limited－China Universal		ordinary shares
CSI New Energy Industry Index-
based Initiative Securities Investment
Fund (LOF) (中國工商銀行股份
有限公司－匯添富中證新能源
汽車產業指數型發起式證券投
資基金(LOF))
Portfolio 414 of the National Social	5,859,962	Renminbi denominated	5,859,962
Security Fund (全國社保基金		ordinary shares
四一四組合)

– 12 –

• Number of

• shares held without Class of shares

• Name of shareholders lock-up Class of shares Number Explanation of the related party 1. The Company’s de facto controller, Mr. Li Liangbin’s family relationships or acting in have no related party relationship with the other top ten concert for the above-mentioned shareholders, and they are also not parties acting in concert shareholders defined under “Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies”;

Name of shareholders

1. The Company is not aware of any of the other top ten shareholders who have related party relationships or are acting in concert with each other.

Note 1: The number includes the 37,000 H shares held by Mr. Wang Xiaoshen;

Note 2: The number excludes the 37,000 H shares held by Mr. Wang Xiaoshen.

• (II) Total number of preferred shareholders of the Company and the shareholdings of the top ten preferred shareholders

Yes ✓ No

III. OTHER MAJOR ISSUES

✓ Yes No

1. At the 29th meeting of the fifth session of the Board of the Company held on July 16, 2021, the resolution in relation to the Offer to Purchase Canadian Company Millennial by GFL International or Its Wholly-owned Subsidiary, Involving Mining Rights Investment (《關於贛鋒國際或其 全資子公司對加拿大Millennial公司進行要約收購涉及礦業權投資的議 案》) was considered and passed, approving the offer to purchase Canada Millennial Lithium Corp. (“ Millennial ”) by GFL International Co., Limited (“ GFL International ”), or its wholly-owned subsidiary, with its own funds. The share price of the transaction is C$3.60 per share and the transaction amount shall not exceed C$353 million. For details, please refer to the announcement on the Offer to Purchase Canadian Company Millennial by GFL International or Its Wholly-owned Subsidiary, Involving Mining Rights Investment (關於贛鋒國際或其全資子公司對加拿大Millennial公司進行 要約收購涉及礦業權投資的公告) (Ann no.: 2021-130) published on the Securities Times and the CNINFO website (巨潮資訊網) (www.cninfo.com. cn) by the Company on July 17, 2021.

– 13 –

In September 2021, the Company received a notice from GFL International that Millennial had unilaterally terminated the cooperation agreement on offer to purchase with GFL International and paid a termination fee of US$10 million to GFL International as Millennial had received a “better offer” from a competitor to the offer and GFL International had not chosen to increase the offer price within the agreed period. For details, please refer to the progress announcement on the Offer to Purchase Canadian Company Millennial by GFL International or Its Wholly-owned Subsidiary, Involving Mining Rights Investment (關於贛鋒國際或其全資子公司對加拿大 Millennial公司進行要約收購涉及礦業權投資的進展公告) (Ann no.: 2021172) published on the Securities Times and the CNINFO website (巨潮資訊 網) (www.cninfo.com.cn) by the Company on September 30, 2021.

1. At the 31st meeting of the fifth session of the Board of the Company held on July 30, 2021, the resolution in relation to the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy (《關於對控股子公司贛鋒鋰 電增資的議案》), the resolution in relation to the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy by Employee Shareholding Platform (《關於員工持股平台對控股子公司贛鋒鋰電增資的議案》), the resolution in relation to the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy by Absorbing Investors (《關於控股子公司贛鋒鋰電 吸收投資方進行增資的議案》), the resolution in relation to the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy by Related Parties (《關於關聯方對控股子公司贛鋒鋰電增資的議案》) were considered and approved, and at the 2021 fourth extraordinary general meeting of the Company held on August 31, 2021, the resolution in relation to the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy (《關於對控股 子公司贛鋒鋰電增資的議案》) was considered and approved. In order to optimize the governance structure of Jiangxi Ganfeng LiEnergy Technology Co., Ltd. (“ Ganfeng LiEnergy ”), a wholly-owned subsidiary, raise funds to further develop the business of Ganfeng LiEnergy, retain and attract talents, give full play to the capital strength of the controlled subsidiary, and realize the goal of making the company bigger and stronger, the Company increased its capital to Ganfeng LiEnergy with an amount of RMB2 billion, of which RMB800 million shall be recognized in the registered capital; Xinyu Zhongxinzhonglian Service Management Centre (Limited Partnership) (新 餘眾信眾聯服務管理中心(有限合夥)) increased its capital to Ganfeng LiEnergy with an amount of RMB42.1 million, of which RMB16.84 million shall be recognized in the registered capital; Hubei Xiaomi Yangtze River Industrial Fund Partnership (Limited Partnership) (湖北小米長江產業基金 合夥企業(有限合夥)), Hainan Jimu Venture Capital Co., Ltd. (海南極目創 業投資有限公司), Xunxing Investment (Chongqing) Co., Ltd. (巡星投資(重

– 14 –

慶)有限公司), Shenzhen Zhanxiang Information Technology Co., Ltd. (深 圳市展想信息技術有限公司), Anke Innovation Technology Co., Ltd. (安 克創新科技股份有限公司), Jiangxi Jiahe Electroacoustic Technology Co., Ltd. (江西佳禾電聲科技有限公司), Shenzhen Yishengdian Technology Partnership (Limited Partnership) (深圳市益聲電科技合夥企業(有限合 夥)), Chongqing Lithium Huiteng Energy Technology Partnership (Limited Partnership) (重慶鋰想匯騰能源技術合夥企業(有限合夥)), Xinzhifeng (Wuhan) Equity Investment Fund Partnership (Limited Partnership) (信之 風(武漢)股權投資基金合夥企業(有限合夥)), Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) (鎮江德茂海 潤股權投資基金合夥企業(有限合夥)), Chongqing Liangjiang New Area Science and Technology Innovation Equity Investment Fund Partnership (Limited Partnership) (重慶兩江新區科技創新股權投資基金合夥企業(有限 合夥)), Chongqing Liangjiang Xizheng Fund Equity Investment Partnership (Limited Partnership) (重慶兩江西證股權投資基金合夥企業(有限合夥)), Xinyu High Tech Investment Co., Ltd. (新余高新投資有限公司), Xinyu Urban And Rural Construction Investment (Group) Co., Ltd. (新余市城鄉 建設投資(集團)有限公司), Xinyu Guoxin Holding Co., Ltd. (新余市國信 控股有限責任公司), Xinyu Lulin Investment Co., Ltd. (新余市露林投資 有限責任公司), Xinyu Zhongfu Technology Consulting Center (Limited Partnership) (新余眾福技術諮詢中心(有限合夥)), Shanghai Zhuque Renyin Private Investment Fund Partnership (Limited Partnership) (上海朱雀壬寅 私募投資基金合夥企業(有限合夥)), Lishui Lisen Youwei Venture Capital Partnership (Limited Partnership) (麗水立森酉為創業投資合夥企業(有 限合夥)), Shanghai Pengte Enterprise Management Center (上海芃特企 業管理中心) increased capital contribution by RMB971.25 million, of which RMB388.5 million shall be recognized in the registered capital; Ge Qiaoyu (戈巧瑜) and Jiang Rongjin (蔣榮金), both being shareholders of Guangdong Huichuang New Energy Co., Ltd. (廣東匯創新能源有限公司), increased capital contribution to Ganfeng LiEnergy with their own funds of RMB20.625 million and RMB16.875 million, respectively, of which RMB15 million shall be recognized in the registered capital. For details, please refer to the announcement on the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy ( 關於對控股子公司贛鋒鋰電增資的公告 ), the announcement on the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy by Employee Shareholding Platform (關於員工持股平台對控股子 公司贛鋒鋰電增資的公告), the announcement on the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy by Absorbing Investors (關於控股 子公司贛鋒鋰電吸收投資方增資的公告), the announcement on the Capital Increase in its Controlled Subsidiary Ganfeng LiEnergy by Related Parties (關於關聯方對控股子公司贛鋒鋰電增資的公告) (Ann no.: Lin 2021-141, Lin 2021-142, Lin 2021-143 and Lin 2021-144) published on the Securities Times and the CNINFO website (巨潮資訊網) (www.cninfo.com.cn) by the Company on July 31, 2021.

– 15 –

1. At the 32nd meeting of the fifth session of the Board of the Company held on August 5, 2021, the resolution in relation to the Investment in and Construction of New-type Lithium Battery Project with 15GWh Annual Capacity by Ganfeng LiEnergy (《關於贛鋒鋰電投資建設年產15GWh新 型鋰電池項目的議案》) was considered and approved. It was agreed that Ganfeng LiEnergy, a controlled subsidiary of the Company, would invest in the construction of a new-type lithium battery project with 15GWh annual capacity with its own fund of RMB8.4 billion, of which RMB3 billion would be invested in the construction of a new-type lithium battery project with 5 GWh annual capacity in High Tech Industrial Development Zone of Xinyu, Jiangxi, and Ganfeng LiEnergy would establish a new independent legal entity project company to invest RMB5.4 billion in the construction of a new-type lithium battery science and technology industrial park with 10 GWh annual capacity and an advanced battery research institute project in Liangjiang New District, Chongqing. For details, please refer to the Announcement on the Investment in and Construction of New-type Lithium Battery Project with 15GWh Annual Capacity by Ganfeng LiEnergy (關於贛 鋒鋰電投資建設年產15GWh新型鋰電池項目的公告) (Ann no.: 2021-152) published on the Securities Times and the CNINFO website (巨潮資訊網) (www.cninfo.com.cn) by the Company on August 6, 2021.

2. On September 9, 2021, the application for initial public offering of shares of Ganzhou Tengyuan Cobalt New Material Co., Ltd., an investee of the Company, was approved by the 56th review meeting of the Listing Committee for the ChiNext Market of the Shenzhen Stock Exchange in 2021. For details, please refer to the announcement on the Application for Initial Public Offering of Shares and Listing on the ChiNext Market of Ganzhou Tengyuan Cobalt New Material Co., Ltd., an Investee of the Company, Considered and Approved by the Listing Committee for the ChiNext Market of the Shenzhen Stock Exchange (關於參股公司騰遠鈷業首次公開發行股 票並在創業板上市申請獲得深圳證券交易所創業板上市委審議通過的公 告) (Ann no:. 2021-164) published on the Securities Times and the Cninfo website (巨潮資訊網) (www.cninfo.com.cn) by the Company on September 10, 2021.

– 16 –

1. On September 17, 2021, the Company and the People’s Government of Xuanhan County signed the agreement on inviting investment and the supplemental agreement on inviting investment. Adhering to the principle of equality and mutual benefit, after friendly negotiations between the parties, the Company or its subsidiary designated by it would establish a new independent legal entity, a subsidiary, to invest in the construction of high purity lithium salt project and the project of comprehensive recycling and reuse of retired batteries in the jurisdiction under the People’s Government of Xuanhan County. For details, please refer to the announcement on the Entering into of the Agreement on Inviting Investment with People’s Government of Xuanhan County (關於與宣漢縣人民政府簽署招商引資協 議的公告) (Ann no.: 2021-167) published on the Securities Times and the CNINFO website (巨潮資訊網) (www.cninfo.com.cn) by the Company on September 18, 2021.

2. On September 17, 2021, Qinghai Liangcheng Mining Co., Ltd. (青海良 承礦業有限公司) (“ Qinghai Liangcheng ”), a wholly-owned subsidiary of the Company, entered into the agreement on capital increase in Qinghai Jintai Potash Co., Ltd. with Li Shiwen, Qinghai Fukang Mining Assets Management Co., Ltd. (青海富康礦業資產管理有限公司) and Qinghai Jintai Potash Co., Ltd. (青海錦泰鉀肥有限公司) (“ Jintai Potash* ”). Qinghai Liangcheng proposed to increase its capital contribution to Jintai Potash by RMB704,965,119 with its own funds, of which RMB31,331,700 is the newly registered capital of Jintai Potash and the remaining portion is included in the capital reserve of Jintai Potash. Upon the completion of the transaction, Qinghai Liangcheng will hold 15.48% equity interest in Jintai Potash. For details, please refer to the announcement on Capital Increase in Jintai Potash by Qinghai Liangcheng, a Wholly-owned Subsidiary of the Company (關 於全資子公司青海良承對錦泰鉀肥增資的公告) (Ann no.: 2021-168) published on the Securities Times and the CNINFO website (巨潮資訊網) (www.cninfo.com.cn) on September 18, 2021.

– 17 –

1. On September 22, 2021, Mr. Li Liangbin (李良彬), one of the de facto controllers of the Company, and Xu Xiaowei (胥小慰) jointly signed the equity transfer agreement in respect of 70% of the Equity Interest of Xianghuangqi Mengjin Mining Development Co., Ltd. (關於鑲黃旗蒙金 礦業開發有限公司70%股權之股權轉讓協議). Li Liangbin will acquire 70% of the equity interest of Xianghuangqi Mengjin Mining Development Co., Ltd. (鑲黃旗蒙金礦業開發有限公司) (“ Mengjin Mining ”) using selfowned funds of RMB1,344,000,000. Upon completion of the acquisition, Li Liangbin will constitute potential inter-competition with the Company. From the perspective of protecting the interest of the Company and its minority shareholders, Li Liangbin has applied for a waiver of its original commitment to avoid horizontal competition in relation to the acquisition of equity interest of Mengjin Mining, and in order to effectively resolve the horizontal competition with the Company, Li Liangbin made a Supplemental Commitment Letter on Avoidance of Potential Horizontal Competition (關 於避免潛在同業競爭的補充承諾函) on September 22, 2021 in relation to the acquisition of equity interest of Mengjin Mining. The commitment letter is only applicable to the acquisition of equity interest of Mengjin Mining by Li Liangbin and does not constitute a change to the original commitment. On the same day, the Proposal on the Waiver of Commitment on Avoidance of Horizontal Competition by the De Facto Controller (關於豁免實際控 制人避免同業競爭承諾事項的議案) was considered and approved at the thirty-fourth meeting of the fifth session of the Board and the twenty-fifth meeting of the fifth session of the supervisory committee of the Company, respectively. For details, please refer to the announcement on the Waiver of Commitment on Avoidance of Horizontal Competition by the De Facto Controller (關於豁免實際控制人避免同業競爭承諾事項的公告) (Ann no.: 2021-171) published on the Securities Times and the CNINFO website (巨潮 資訊網) (www.cninfo.com.cn) by the Company on September 23, 2021.

– 18 –

SECTION 4 QUARTERLY FINANCIAL STATEMENTS

I. Financial statements

1. Consolidated balance sheet

Prepared by: Ganfeng Lithium Co., Ltd.

September 30, 2021

Unit: RMB

Item Current asset: Monetary fund Clearing settlement fund Capital lending Financial assets held for trading Derivative financial assets Bills receivable Accounts receivable Accounts receivable financing Prepayments Premiums receivable Reinsurance receivable Reinsurance contract reserve receivable Other receivables Including: Interest receivable Dividend receivable Financial assets purchased for resale Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets	September 30, 2021 7,467,131,948.68 465,245,761.08 1,836,049,478.59 1,009,402,381.36 646,492,643.07 41,745,014.56 2,628,066,093.86 674,723,559.94 14,768,856,881.14	December 31, 2020 2,175,589,944.30 87,116,871.37 1,358,805,453.61 409,189,128.15 544,515,771.92 32,829,019.68 2,214,817,242.35 1,951,968,579.49
		8,774,832,010.87

– 19 –

September 30, 2021 December 31, 2020

Item

Non-current assets: Loans and advances to customers Debenture investments Other debenture investments Long-term receivables Long-term equity investments Other equity instrument investment Other non-current financial assets Investment properties Fixed assets Construction in progress Biological assets for production Fuel assets Right-of-use assets Intangible assets Development expenses Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets Total assets	30,861,842.45 39,755,273.61 2,398,260,132.86 1,951,447,890.90 72,660.92 2,914,447,635.22 4,880,313,553.54 24,391,227.59 3,802,460,027.83 36,110,758.90 78,621,584.64 131,517,740.48 2,832,482,260.34 19,120,742,589.28 33,889,599,470.42	390,771.27 1,636,336,501.60 879,587,367.11 73,584.59 2,272,106,810.52 3,761,131,236.63 28,513,518.80 3,561,544,645.02 24,839,514.08 68,952,187.49 40,363,430.42 971,701,741.13
		13,245,541,308.66
		22,020,373,319.53

– 20 –

September 30, 2021 December 31, 2020

Item Current liabilities: Short-term borrowings Borrowing from PBOC Capital borrowed Financial liabilities held for trading Derivative financial liabilities Bills payable Accounts payable Advances from customers Contract liabilities Financial assets sold under repurchase agreements Deposit taking and deposit in inter-bank market Acting trading securities Acting underwriting securities Staff salaries payable Taxes payable Other payables Including: Interest payable Dividends payable Bank charges and commissions payable Reinsurance payable Liabilities held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities	September 30, 2021 2,109,157,237.06 1,086,869,851.51 1,062,155,329.83 185,812,902.01 52,649,667.94 391,943,513.15 144,216,285.27 1,446,717,798.92 6,479,522,585.69	December 31, 2020 1,631,344,194.09 230,321,752.90 1,211,995,778.75 41,033,419.17 79,053,831.36 131,598,264.62 82,747,359.18 669,689,684.00
		4,077,784,284.07

– 21 –

September 30, 2021 December 31, 2020

Item

Non-current liabilities: Insurance contract reserve Long-term borrowings Bonds payables Including: Preferred shares Perpetual bonds Lease liabilities Long-term payables Long-term staff salaries payable Accrued liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities	3,017,577,360.00 19,893,588.70 797,214,092.30 8,269,546.51 90,797,316.35 18,261,196.79 33,431,508.71 3,985,444,609.36 10,464,967,195.05	1,658,008,360.00 2,133,824,297.91 24,396,460.05 541,730,051.02 7,279,015.32 64,358,892.00 63,837,415.94 30,751,180.78
		4,524,185,673.02
		8,601,969,957.09

– 22 –

Item September 30, 2021 December 31, 2020

Owners’ equity: Share capital 1,437,478,880.00 1,339,960,580.00 Other equity instruments 582,380,688.55 Including: Preferred shares Perpetual bonds Capital reserve 11,941,451,672.86 4,842,886,594.85 Less: treasury share Other comprehensive income -303,425,063.61 -256,853,368.27 Special reserve 4,281,417.38 5,939,997.38 Surplus reserve 399,484,997.94 399,484,997.94 General risk reserve Undistributed profits 5,847,784,860.66 3,791,822,949.39 Total of the equity attributable to the owners of the parent company 19,327,056,765.23 10,705,622,439.84 Minority interests 4,097,575,510.14 2,712,780,922.60 Total owners’ equity 23,424,632,275.37 13,418,403,362.44 Total liabilities and owners’ equity 33,889,599,470.42 22,020,373,319.53 Head of the Accounting Legal representative: Chief Accountant: Department: Li Liangbin Yang Manying Huang Ting

– 23 –

2. Consolidated Income Statement from the beginning of the year to the end of the Reporting Period

Unit: RMB

Amount for the Amount for the Item current period previous period I. Total operating revenue 7,053,758,123.88 3,892,964,913.58 Including: Operating income 7,053,758,123.88 3,892,964,913.58 Interest income Premiums earned Fees and commission income II. Total operating costs 5,262,072,766.37 3,468,716,521.79 Including: Operating costs 4,546,330,735.40 3,160,477,140.55 Interest expense Fees and commission expense Surrender payment Ne t expenditure for compensation payments Ne t provision for insurance liabilities Ex penditures for insurance policy dividend Reinsurance expenses Tax and surcharge 44,482,465.17 13,680,799.77 Selling expenses 37,862,563.03 43,949,119.96 Administrative expenses 283,788,469.95 99,342,820.29 Re search and development expenditure 201,017,622.29 78,215,091.69 Finance expenses 148,590,910.53 73,051,549.53 Including: Interest costs 196,483,061.87 184,886,856.24 Interest income 110,383,512.36 97,688,083.33 Add: Other revenue 31,196,168.14 66,943,096.83 Investment income (“-” denotes loss) 18,852,804.75 44,551,803.64 Including: Sh are in profit of associates and joint ventures -13,868,088.47 28,403,859.10 Gains on derecognition of financial assets measured at amortised cost Foreign exchange gain (“-” denotes loss) Ga in from net exposure to hedging (“-” denotes loss) Ga in on change in fair value (“-” denotes loss) 993,762,361.70 -9,784,890.35 Im pairment loss of credit (“-” denotes loss) -7,729,710.34 -101,430,944.50 Im pairment loss of assets (“-” denotes loss) -4,473,585.38 -10,228,171.70 Ga ins on disposal of assets (“-” denotes loss) -238,152.84 -1,298,232.34

II. Total operating costs

– 24 –

		Amount for the	Amount for the
Item		current period	previous period
III.	Operating profit (“-” denotes loss)	2,823,055,243.54	413,001,053.37
	Add: Non-operating income	653,455.73	1,350,795.33
	Less: Non-operating expense	7,766,535.62	3,105,903.47
IV.	Total profit (“-” denotes total loss)	2,815,942,163.65	411,245,945.23
	Less: Income tax expenses	274,356,030.97	76,940,136.09
V.	Net profit (“-” denotes net loss)	2,541,586,132.68	334,305,809.14
	(I) Classified by business continuity
	1. Ne t profit from continuing operations
	(“-” denotes net loss)	2,541,586,132.68	334,305,809.14
	2. Ne t profit from discontinued operations
	(“-” denotes net loss)
	(II) Net profit attributable to the owners
	1. Ne t profit attributable to the owners of
	the parent company	2,472,792,255.27	330,482,914.66
	2. Minority interests	68,793,877.41	3,822,894.48
VI.	Net other comprehensive income after tax	107,282,456.16	-97,155,775.10
	Ne t amount of other comprehensive income after
	tax attributable to the equity holders of the
	Company	-46,571,695.34	-101,842,083.73

VI. Net other comprehensive income after tax Ne t amount of other comprehensive income after tax attributable to the equity holders of the Company

• (I) Ot her comprehensive income that cannot be reclassified into profit or loss

• Ch anges arising from the re-measurement of defined benefit plans

• Ot her comprehensive income that cannot be transferred to profit or loss under equity method

• Ch anges in fair value of investment in other equity instruments

• Ch anges in fair value of the Company’s own credit risk

• Others

– 25 –

			Amount for the	Amount for the
Item			current period	previous period
	(II) Ot her comprehensive income that will be
		reclassified into profit or loss	-46,571,695.34	-101,842,083.73
		1. Ot her comprehensive income that can be
		transferred to profit or loss under equity
		method	801,799.71	476,207.27
		2. Ch anges in fair value of other debt
		investments
		3. Am ount of financial assets reclassified
		into other comprehensive income
		4. Cr edit impairment provisions for other
		debt investment
		5. Cash flow hedge reserve
		6. Di fference arising from the translation of
		foreign currency financial statements	-47,373,495.05	-102,318,291.00
		7. Others
	Ne t other comprehensive income after tax
		attributable to minority shareholders	153,854,151.50	4,686,308.63
VII.	Total comprehensive income		2,648,868,588.84	237,150,034.04
	To tal comprehensive income attributable to the
		owners of the parent company	2,426,220,559.93	228,640,830.93
	To tal comprehensive income attributable to
		minority shareholders	222,648,028.91	8,509,203.11
VIII.	Earnings per share:
	(I)	Basic earnings per share:	1.77	0.25
	(II) Diluted earnings per share		1.77	0.25

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB, and the net profit recognized by the merged party in the previous period was RMB.

Head of the Accounting Legal representative: Chief Accountant: Department: Li Liangbin Yang Manying Huang Ting

– 26 –

3. Consolidated cash flow statement from the beginning of the year to the end of the Reporting Period

Unit: RMB

Item I. Cash flow generated from operating activities: Cash received from selling goods and providing services Net increase in customer bank deposits and due to banks and other financial institutions Net increase in borrowings from PBOC Net increase in placements from other financial institutions Cash received from original insurance contract premiums Net cash received from reinsurance business Net increase in policy holder deposits and investments funds Cash received from interest, fees and commissions Net increase in capital borrowed Net increase in income from repurchase business Net cash received from securities trading agency services Refunds of taxes received Cash received relating to other operating activities Su b-total of cash inflow from operating activities	Amount for the current period 7,095,598,511.09 3,364,087.92 318,233,744.52 7,417,196,343.53	Amount for the previous period 3,737,188,756.32 43,738,149.21 174,253,564.20 3,955,180,469.73

– 27 –

Item Cash paid for purchasing goods and receiving services Net increase in customer loans and advances to customers Net increase in deposit in PBOC and due to banks and other financial institutions Cash paid for original insurance contract claimed Net increase in capital lending Cash paid for interest, fees and commissions Cash paid for policy holder dividend Cash paid to and for employees Cash paid for taxes Cash paid relating to other operating activities Su b-total of cash outflow from operating activities Ne t cash flow generated from operating activities II. Cash flow generated from investing activities: Cash received from disposal of investments Cash received from returns on investments Net cash received from disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating business units Cash received relating to other investing activities Sub-total of cash inflow from investing activities Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets Cash paid for investment Net increase in pledge loans Net cash paid for acquisition of subsidiaries and other operating business units Cash paid relating to other investing activities Sub-total of cash outflow from investing activities Net cash flow generated from investing activities	Amount for the current period 5,505,104,506.95 451,648,152.47 317,935,958.07 214,570,938.04 6,489,259,555.53 927,936,788.00 1,965,819,850.32 26,693,002.58 232,469.72 984,800.00 17,375,345.16 2,011,105,467.78 1,400,878,524.89 1,495,516,019.02 47,658,340.25 1,750,346,718.26 4,694,399,602.42 -2,683,294,134.64	Amount for the previous period 3,201,207,593.40 307,593,218.79 153,174,836.53 92,093,972.57 3,754,069,621.29 201,110,848.44 257,369,364.91 78,453,558.49 275,468.00 304,520,000.00 640,618,391.40 480,182,012.82 380,217,936.40 333,546,955.30 1,193,946,904.52 -553,328,513.12

– 28 –

Item III. Cash flow generated from financing activities: Cash received from investment Including: Ca sh received by subsidiaries from the investment of minority shareholders Cash received from borrowings Cash received relating to other financing activities Sub-total of cash inflow from financing activities Cash paid for repaying debts Ca sh paid for distributing dividends and profits and interest repayment Including: Di vidends and profits paid by subsidiaries to minority shareholders Cash paid relating to other financing activities Su b-total of cash outflow from financing activities Ne t cash flow generated from financing activities IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Ba lance of cash and cash equivalents at the beginning of the period VI. Balance of cash and cash equivalents at the end of the period	Amount for the current period 4,953,973,351.62 915,584,268.13 4,770,707,368.00 137,743,023.61 9,862,423,743.23 2,150,932,800.00 538,069,360.34 163,358,418.33 2,852,360,578.67 7,010,063,164.56 -104,597,397.19 5,150,108,420.73 1,709,589,944.30 6,859,698,365.03	Amount for the previous period 1,271,664,087.67 240,312.29 6,427,579,688.35 4,500,000.00 7,703,743,776.02 3,897,951,611.53 484,404,628.76 213,667,026.14 4,596,023,266.43 3,107,720,509.59 81,105,311.11 2,836,608,156.02 1,328,104,539.72 4,164,712,695.74

– 29 –

II. Adjustments to financial statement

1. Adjustments to financial statement at the beginning of the year upon the first adoption of new lease standards since 2021

Applicable ✓ Not applicable

2. Retroactive adjustments to comparative data of previous period upon the first adoption of new lease standards since 2021

Applicable ✓ Not applicable

III. Audit report

Has the third quarterly report been audited

Yes ✓ No

The third quarterly report of the Company has not been audited.

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

Jiangxi, PRC October 26, 2021

As at the date of this announcement, the Board comprises Mr. LI Liangbin, Mr. WANG Xiaoshen, Ms. DENG Zhaonan and Mr. SHEN Haibo as executive directors of the Company; Mr. YU Jianguo and Ms. YANG Juan as non-executive directors of the Company; and Mr. LIU Jun, Ms. WONG Sze Wing, Ms. XU Yixin and Mr. XU Guanghua as independent non-executive directors of the Company.

– 30 –