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

Apr 28, 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 FIRST QUARTERLY REPORT

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

SECTION 1 IMPORTANT NOTICE

The board (the “Board”) of directors (the “Directors”), the supervisory committee as well as the senior management of Ganfeng Lithium Co., Ltd. (the “Company”) 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 responsibility pursuant to such information.

All directors attended the meeting of the Board to consider the quarterly report.

Mr. Li Liangbin, chairman of the Company, Ms. Yang Manying, the person in charge of the Company’s accounting functions and, Ms. 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 statements in this quarterly report.

– 1 –

SECTION 2 COMPANY PROFILE

I. Major Accounting Data and Financial Indicators

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

The Reporting Period 1,606,822,673.47 476,096,554.72 293,712,457.33 -217,010,375.97 0.36 0.36 4.34% As at the end of the Reporting Period 23,307,694,487.73 11,854,755,292.63	The corresponding period of the previous year 1,078,841,300.29 7,746,065.51 71,858,319.41 -138,580,433.01 0.01 0.01 0.09% As at the end of the previous year 22,020,373,319.53 10,705,622,439.84	Increase/ decrease for the reporting period compared with the corresponding period of the previous year 48.94% 6,046.30% 308.74% -56.60% 3,500.00% 3,500.00% 4.25% Increase/ decrease as at the end of the reporting period compared with the end of the previous year 5.85% 10.73%

– 2 –

Non-recurring gains and losses items and amounts

✓ Applicable Not applicable

Unit: RMB Yuan

Items

Amount for the period from the beginning of the year to the end of the Reporting Period Explanation

• Gains or losses on disposal of noncurrent assets (including the writtenoff portion of provisions for asset impairment)

128,277.49

• Government grants (except for government grants which are closely related to the corporate business and conform with the amount and quantities at a national unified standard) charged to gains or losses for the current period

10,248,811.07 Mainly due to the receipt of the government grants related to revenue 174,070,066.64 Mainly due to the rise of prices of financial assets held by the Company

• Gains or losses on change in fair value arising 174,070,066.64 from financial assets held for trading, derivative financial assets, financial liabilities held for trading and derivative financial liabilities, investment gains from disposal of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other debt investments, other than effective hedging activities associated with normal business operations of the Company

• Other non-operating income and expenses apart -160,689.07 from the items stated above

• Less: Effect on income tax 1,902,368.74 Total 182,384,097.39 –

– 3 –

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

Applicable ✓ Not applicable

During the reporting period, 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.

II. Total number of shareholders and shareholdings of top ten shareholders at the end of the reporting period

1. Total number of ordinary shareholders and preferred shareholders with voting rights resumed and shareholdings of the top ten shareholders

Unit: Shares

Total number
of ordinary		Total number of preferred
shareholders at		shareholders with voting rights
the end of the	157,975(A shares);	resumed at the end of the
reporting period	26 (H shares)	reporting period (if any)	0

Shareholdings of the top ten shareholders

				Number of
				shares held	Position	pledged or frozen
	Nature of	Proportion of	Number of	subject to	Status of
Name of shareholders	shareholders	shareholding	shares held	lock-up	shares	Number
Li Liangbin	Domestic natural	19.90%	269,770,452	202,327,839	Pledged	90,550,000
	person
HKSCC NOMINEES	Foreign legal	17.72%	240,211,796	9,250
LIMITED	person		(Note 1)
Wang Xiaoshen	Domestic natural	7.44%	100,898,904	75,674,178	Pledged	50,340,000
	person		(Note 2)
Hong Kong Securities	Foreign legal	4.46%	60,445,563	0
Clearing Company Limited	person

– 4 –

Number of

				Number of
				shares held	Position	pledged or frozen
	Nature of	Proportion of	Number of	subject to	Status of
Name of shareholders	shareholders	shareholding	shares held	lock-up	shares	Number
Industrial and Commercial	Others	1.24%	16,820,976	0
Bank of China Limited –
Central European Pioneer
Equity Initiative Securities
Investment Fund
Huang Wen	Domestic natural	0.83%	11,316,210	0
	person
Shen Haibo	Domestic natural	0.82%	11,083,568	8,312,676	Pledged	6,500,000
	person
China Construction Bank	Others	0.69%	9,408,153	0
Corporation- Central
European New Blue Chip
Flexible Allocation Hybrid
Securities Investment Fund
(中國建設銀行股份有
限公司－中歐新藍籌靈
活配置混合型證券投
資基金)
Industrial and Commercial	Others	0.61%	8,302,394	0
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)
Agricultural Bank of China	Others	0.52%	7,053,205	0
Limited – GF Balanced
and Optimized Hybrid
Securities Investment Fund
(中國農業銀行股份有
限公司－廣發均衡優選
混合型證券投資基金)

– 5 –

Shareholdings of top ten shareholders holding shares without lock-up

	of shares
	held without		Class of shares
Name of shareholders	lock-up	Class of shares		Number
HKSCC NOMINEES LIMITED	240,202,546	Overseas listed	foreign shares	240,202,546
Li Liangbin	67,442,613	Renminbi denominated ordinary		67,442,613
		shares
Hong Kong Securities Clearing Company	60,445,563	Renminbi denominated ordinary		60,445,563
Limited		shares
Wang Xiaoshen	25,224,726	Renminbi denominated ordinary		25,224,726
		shares
Industrial and Commercial Bank of China	16,820,976	Renminbi denominated ordinary		16,820,976
Limited – Central European Pioneer		shares
Equity Initiative Securities Investment
Fund
Huang Wen	11,316,210	Renminbi denominated ordinary		11,316,210
		shares
China Construction Bank Corporation	9,408,153	Renminbi denominated ordinary		9,408,153
– Central European New Blue Chip		shares
Flexible Allocation Hybrid Securities
Investment Fund (中國建設銀行股份
有限公司－ 中歐新藍籌靈活配置
混合型證券投資基金)
Industrial and Commercial Bank of China	8,302,394	Renminbi denominated ordinary		8,302,394
Limited – ABC-CA New Energy Theme		shares
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)
Agricultural Bank of China Limited –	7,053,205	Renminbi denominated ordinary		7,053,205
Guangfa Balanced and Optimized Hybrid		shares
Securities Investment Fund (中國農業
銀行股份有限公司－廣發均衡優
選混合型證券投資基金)
Industrial Bank Co., Ltd.– Central European	7,045,513	Renminbi denominated ordinary		7,045,513
New Trend Equity Securities Investment		shares
Fund (LOF) (興業銀行股份有限公
司－中歐新趨勢股票型證券投資
基金(LOF))

– 6 –

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

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

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.

Whether top ten ordinary shareholders or top ten ordinary shareholders who are not subject to lock-up restriction of the Company carried out any agreed buy-back transactions during the reporting period

Yes ✓ No

No agreed buy-back transaction was carried out by top ten ordinary shareholders or top ten ordinary shareholders who are not subject to lock-up restriction of the Company during the reporting period.

2. Total number of preferred shareholders of the Company and the shareholdings of the top ten preferred shareholders

Applicable ✓ Not applicable

– 7 –

SECTION 3 SIGNIFICANT ISSUES

• I. Circumstances for changes in major financial data and financial indicators and the reasons thereof during the reporting period

	✓	Applicable			Not	applicable
					March 31,	December 31,	Percentage
Balance Sheet Items					2021	2020	**of changes **	Analysis on the reasons
Prepayments				801,113,475.68		544,515,771.92	47.12%	The change was mainly due to the
								increase of advance payment
								for raw materials in the current
								period;
Other receivables				52,642,464.80		32,829,019.68	60.35%	The change was mainly due to the
								increase of the bid deposit;
Other current assets				563,689,982.21		1,951,968,579.49	-71.12%	The change was mainly due to the
								transfer-out of the term deposit
								in this subject at the end of last
								year as a result of maturing in
								the current period;
Other non-current financial			1,243,877,984.50			879,587,367.11	41.42%	The change was mainly due to
	assets							the investment of new projects
								and the rise in stock price of
								Pilbara;
Other non-current assets			2,006,948,122.33			971,701,741.13	106.54%	The change was mainly due to the
								additional investments funds
								from Yili Hongda in the current
								period;
Bills		payable		381,798,010.80		230,321,752.90	65.77%	The change was mainly due to the
								increase of usage of the bank
								notes payables for the advance
								payment for raw materials in
								the current period;
Contract liabilities				66,345,161.65		41,033,419.17	61.69%	The change was mainly due to
								the increase of advances in the
								current period;
Taxes payable				193,775,903.94		131,598,264.62	47.25%	The change was mainly due to the
								increase of value added taxes
								payable during the Reporting
								Period;
Non-current liabilities due			1,249,295,210.29			669,689,684.00	86.55%	The change was mainly due
	within one year							to the increase of long-term
								borrowings due within one
								year;

– 8 –

	March 31,	December 31,	Percentage
Balance Sheet Items	2021	2020	**of changes **	Analysis on the reasons
Deferred income tax liabilities	34,636,596.91	63,837,415.94	-45.74%	The change was mainly due to the
				conversion or redemption of
				convertible bonds in the current
				period;
	Amount for	Amount for	Percentage
Income statement items	the current period	the previous period	**of changes **	Reasons for changes
Operating income	1,606,822,673.47	1,078,841,300.29	48.94%	The change was mainly due to the
				increase of sales in the current
				period;
Tax and surcharge	12,547,060.30	4,977,622.54	152.07%	The change was mainly due to the
				increase of taxes as a result of
				increase in operating income
				during the Reporting Period;
Selling expenses	12,613,182.99	18,594,758.76	-32.17%	The change was mainly because
				the transaction cost has been
				recognized in the operating cost
				during the Reporting Period;
Administrative expenses	32,362,547.44	23,299,322.84	38.90%	The change was mainly due to
				the enlarged scale of lithium
				battery segment, resulting in
				the corresponding increase in
				administrative cost;
Research and development	36,662,880.63	21,606,335.99	69.69%	The change was mainly due to
Expenditure				the increase in research and
				development expenses during
				the current period;
Investment income	3,351,565.98	28,381,463.62	-88.19%	The change was mainly due to the
				change in profit of associates
				and joint ventures during the
				Reporting Period;
Gain on change in fair value	165,131,227.74	-87,696,997.81	288.30%	The change was mainly due to the
				rise in stock price of financial
				assets;
Impairment loss of assets	1,001,934.69	-40,889.62	2,550.34%	The change was mainly due to
				the the increase of the net
				realizable value as a result of
				the rising price of inventories
				such as lithium carbonate;
Gains on disposal of assets	0.00	-26,622.39	100.00%	The change was mainly because
				there is no fixed assets have
				been disposed directly during
				the current period;

– 9 –

	Amount for	Amount for	Percentage
Income statement items	the current period	the previous period	**of changes **	Reasons for changes
Non-operating income	147,956.32	480,193.17	-69.19%	The change was mainly due to
				the decrease of revenues which
				are not directly related to the
				ordinary activities during the
				Reporting Period;
Non-operating expense	180,367.90	782,470.75	-76.95%	The change was mainly due to the
				decrease of payments which
				are not directly related to the
				ordinary activities during the
				Reporting Period;
Income tax expenses	38,949,407.24	17,694,902.16	120.12%	The change was mainly due to
				increase of net profit;
Cash flow statement	Cash flow	Amount for	Percentage
items	statement items	the previous period	**of changes **	Reasons for changes
Net cash flow generated	-217,010,375.97	-138,580,433.01	-56.60%	The change was mainly due
from operating activities				to the increase in cash paid
				for purchasing goods and
				receiving services;
Net cash flow generated	-163,069,890.56	-418,057,997.68	60.99%	The change was mainly due
from investing activities				to the increase in cash
				received for investment in
				the current period;
Net cash flow generated	657,571,330.58	1,545,840,111.83	-57.46%	The change was mainly due
from financing activities				to the decrease of cash
				received for borrowing in
				the current period;

– 10 –

II. Analysis and explanation of the progress of significant events and their effects and the solutions

• ✓ Applicable Not applicable

• The Resolution on the Early Redemption of Ganfeng Convertible Bonds was considered and approved at the 16th meeting of the fifth session of the Board held by the Company on January 22, 2021, pursuant to which, the Company was approved to exercise the conditional redemption rights of Ganfeng Convertible Bonds to redeem all outstanding Ganfeng Convertible Bonds which have not been converted into shares, at a price equal to the nominal value of the bonds plus the interest accrued. For details, please refer to the First Announcement of Ganfeng Lithium in relation to the Implementation of Redemption of Ganfeng Convertible Bonds (Lin 2021–007) disclosed by the Company on the Securities Times and the website of CNINFO (巨潮資訊網) (http://www.cninfo.com.cn) on January 23, 2021.

March 8, 2021 was the redemption day of Ganfeng Convertible Bonds, from which the trading and conversion of the Ganfeng Convertible Bonds were ceased. For details, please refer to the Announcement of Ganfeng Lithium in relation to the Cease of Trading and Conversion of Ganfeng Convertible Bonds (Lin 2021–040) disclosed by the Company on the Securities Times and the website of CNINFO ( 巨潮資訊網 ) (http://www.cninfo.com.cn) on March 8, 2021.

On March 16, 2021, the Company disclosed the redemption results of Ganfeng Convertible Bonds. As at March 5, 2021, there were 59,603 outstanding Ganfeng Convertible Bonds, and the number of redeemed bonds was 59,603. The Company paid a total redemption amount of RMB5,972,816.63, which was transferred to the capital account of the holders of Ganfeng Convertible Bonds on March 15, 2021. Upon the completion of redemption, the Ganfeng Convertible Bonds no longer met the listing conditions and were delisted from the Shenzhen Stock Exchange with effect from March 16, 2021. For details, please refer to the Announcement of Ganfeng Lithium in relation to the Results of Redemption of Ganfeng Convertible Bonds (Lin 2021–043) and the Announcement of Ganfeng Lithium in relation to the Delisting of Ganfeng Convertible Bonds (Lin 2021–044) disclosed by the Company on the Securities Times and the website of CNINFO ( 巨潮資訊網 ) (http://www.cninfo.com.cn) on March 16, 2021.

– 11 –

1. The Resolution on Subscription of Certain Equity Involving Investment in Mining Rights in Bacanora by the Wholly-owned Subsidiary Shanghai Ganfeng and Related Party Transaction was considered and approved at the 17th meeting of the fifth session of the Board held by the Company on February 5, 2021, pursuant to which, Shanghai Ganfeng was approved to subscribe for 53,333,333 new shares from Bacanora with its owned funds with the transaction amount of not more than ￡24 million. Prior to the completion of the transaction, Shanghai Ganfeng held 25.74% of the equity interest in Bacanora. Upon the completion of the transaction, Shanghai Ganfeng would hold no more than 29.99% of the equity interest in Bacanora. For details, please refer to the Announcement of Ganfeng Lithium in relation to the Subscription of Certain Equity Involving Investment in Mining Rights in Bacanora by the Wholly-owned Subsidiary Shanghai Ganfeng and Related Party Transaction (Lin 2021–020) disclosed by the Company on the Securities Times and the website of CNINFO (巨潮資訊網) (http://www. cninfo.com.cn) on February 6, 2021.

2. The Resolution on the Plan for Issuance of H Shares of the Company and the Resolution on the Authorization to the Board and its Authorized Persons by the General Meeting to Handle Matters Relating to the Issuance of H Shares at Their Full Discretion were considered and approved at the 18th meeting of the fifth session of the Board held by the Company on February 25, 2021. In order to meet the needs of the rapid business development of the Company, improve the Company’s core competitiveness and achieve its strategic objectives, the Company proposed to convene the general meeting and the class meetings to grant the specific mandate to the Company to issue not more than 48,044,560 (inclusive) oversea-listed foreign shares (H shares) additionally, which shall be listed and traded on the Main Board of The Stock Exchange of Hong Kong Limited. In addition, it was proposed at the general meeting and the class meetings to authorize the Board, and to agree that the Board would further authorize Mr. Li Liangbin, the chairman of the Board or Ms. Ou Yangming, the secretary to the Board, to jointly or separately exercise the full power to handle all matters relating to the Issuance of H Shares. For details, please refer to the Announcement of Ganfeng Lithium in relation to the Resolution at the 18th Meeting of the Fifth Session of the Board (Lin 2021–029) disclosed by the Company on the Securities Times and the website of CNINFO ( 巨潮資訊網 ) (http://www.cninfo.com. cn) on February 26, 2021.

– 12 –

1. In March 2021, the Company and Shenzhen Kexin Communication Technologies Co., Ltd. (“ Kexin Technology ”) negotiated kindly and entered into the Medium and Long Term (2021–2025) Strategic Cooperation Agreement based on the principle of equality and voluntariness. The Company will actively explore an efficient and pragmatic cooperation mode with Kexin Technology, and give full play to their respective leading advantages in the industry to carry out comprehensive cooperation and resource sharing in resource regeneration projects such as new energy battery, communication base station energy storage, data center energy storage and battery recycling, so as to achieve mutual benefit and win-win results. For details, please refer to the Announcement of Ganfeng Lithium in relation to the Signing of Strategic Cooperation Agreement (Lin 2021– 036) disclosed by the Company on the Securities Times and the website of CNINFO ( 巨潮資訊網 ) (http://www.cninfo.com.cn) on March 3, 2021.

2. The Resolution on the Acquisition of 100% Property Share Involving Investment in Mining Rights of Ili Hongda was considered and approved at the 19th meeting of the fifth session of the Board held by the Company on March 8, 2021, pursuant to which, the Company and Qinghai Liangcheng Mining Co., Ltd. (“ Qinghai Liangcheng ”), a wholly-owned subsidiary, were approved to acquire 100% property share of Ili Hongda held by Zhu Nailiang, Tibet Hongda New Energy Technology Co., Ltd. and CITIC Securities Co., Ltd. (on behalf of CITIC Securities Hongda No. 1 Targeted Asset Management Plan) for the price of RMB1,470,000,000 with selfowned funds. Upon the completion of the transaction, the Company held 0.18% property share of Ili Hongda and Qinghai Liangcheng held 99.82% property share of Ili Hongda. For details, please refer to the Announcement of Ganfeng Lithium in relation to the Acquisition of 100% Property Share Involving Investment in Mining Rights of Ili Hongda (Lin 2021–042) disclosed by the Company on the Securities Times and the website of CNINFO ( 巨潮資訊網 ) (http://www.cninfo.com.cn) on March 8, 2021.

3. The Resolution on the Capital Increase in Wholly-owned Subsidiary was considered and approved at the 20th meeting of the fifth session of the Board held by the Company on March 30, 2021, pursuant to which, the Company was approved to increase its capital contribution to Qinghai Liangcheng Mining Co., Ltd., a wholly-owned subsidiary, with its own funds of RMB1,500 million. The original registered capital of Qinghai Liangcheng was RMB100 million, and upon the completion of the increase of capital contribution, the registered capital was RMB1,600 million, in which the Company held 100% equity interest. For details, please refer to the Announcement of Ganfeng Lithium in relation to the Capital Increase in Wholly-owned Subsidiary (Lin 2021–055) disclosed by the Company on the Securities Times and the website of CNINFO ( 巨潮資訊網 ) (http://www.cninfo.com.cn) on March 31, 2021.

– 13 –

1. The Resolution on the Early Redemption of Ganfeng Convertible Bonds 2 was considered and approved at the 21st meeting of the fifth session of the Board held by the Company on March 31, 2021, pursuant to which, the Company was approved to exercise the conditional redemption rights of Ganfeng Convertible Bonds 2 to redeem all outstanding Ganfeng Convertible Bonds 2 which have not been converted into shares, at a price equal to the nominal value of the bonds plus the interest accrued. For details, please refer to the First Announcement of Ganfeng Lithium in relation to the Implementation of Redemption of Ganfeng Convertible Bonds 2 (Lin 2021– 059) disclosed by the Company on the Securities Times and the website of CNINFO ( 巨潮資訊網 ) (http://www.cninfo.com.cn) on April 1, 2021.

	Date of	Index to the Websites on which
Overview of Significant Issues	Disclosure	Interim Reports Disclosed
Issues on the early redemption of	January 23, 2021	First Announcement of Ganfeng
Ganfeng Convertible Bonds		Lithium in relation to the
		Implementation of Redemption of
		Ganfeng Convertible Bonds (Lin
		2021–007)
	March 8, 2021	Announcement of Ganfeng Lithium in
		relation to the Cease of Trading and
		Conversion of Ganfeng Convertible
		Bonds (Lin 2021–040)
	March 16, 2021	Announcement of Ganfeng Lithium
		in relation to the Results
		of Redemption of Ganfeng
		Convertible Bonds (Lin 2021–043)
	March 16, 2021	Announcement of Ganfeng Lithium in
		relation to the Delisting of Ganfeng
		Convertible Bonds (Lin 2021–044)
Matters concerning the subscription	February 6, 2021	Announcement of Ganfeng Lithium
of certain Equity in Mining Rights		in relation to the Subscription
in Bacanora by the wholly-owned		of Certain Equity Involving
subsidiary of Shanghai Ganfeng		Investment in Mining Rights in
and related party transaction		Bacanora by the Wholly-owned
		Subsidiary Shanghai Ganfeng and
		Related Party Transaction (Lin
		2021–020)
Matters concerning the Plan for	February 26,	Announcement of Ganfeng Lithium
Issuance of H Shares of the	2021	in relation to the Resolution at the
Company		18th Meeting of the Fifth Session
		of the Board (Lin 2021–029)

– 14 –

Overview of Significant Issues

Date of Index to the Websites on which Disclosure Interim Reports Disclosed

Matters concerning the signing of March 3, 2021 Announcement of Ganfeng Lithium in strategic cooperation agreement relation to the Signing of Strategic between the Company and Kexin Cooperation Agreement (Lin 2021– Technologies 036) Matters concerning the Investment March 9, 2021 Announcement of Ganfeng Lithium in mining Rights Through in relation to the Acquisition of Acquisition of 100% Property 100% Property Share Involving Share of Ili Hongda Investment in Mining Rights of Ili Hongda (Lin 2021–042)

• Announcement of Ganfeng Lithium in relation to the Signing of Strategic Cooperation Agreement (Lin 2021– 036)

Matters concerning the Increase of March 31, 2021 Announcement of Ganfeng Lithium capital contribution of wholly in relation to the Capital Increase owned subsidiary of Qinghai in Wholly-owned Subsidiary (Lin Liangcheng 2021–055) Issues on the Early Redemption of April 1, 2021 First Announcement of Ganfeng Ganfeng Convertible Bonds 2 Lithium in relation to the Implementation of Redemption of Ganfeng Convertible Bonds 2 (Lin 2021–059)

Progress in repurchase of shares

Applicable ✓ Not applicable

Progress in implementation of reducing shareholding of repurchased shares through centralized auction

Applicable ✓ Not applicable

III. Outstanding commitments made by relevant parties, such as de facto controllers of the Company, shareholders, related parties, the acquirers and the Company, during the reporting period

Applicable

✓ Not applicable

There were no outstanding commitments made by relevant parties, such as de facto controllers of the Company, shareholders, related parties, the acquirers and the Company, during the reporting period.

– 15 –

IV. Investments in financial assets

1. Investments in securities

✓ Applicable Not applicable

Unit: RMB

							Profit or loss
							arising from
						Book value	changes in	Changes in				Book value
						at the	fair value	accumulated	Purchases	Disposals	Profit or	at the end
			Initial	Accounting		beginning of	during the	fair value	during the	during the	loss for the	of the
Type of	Securities	Securities	investment	measurement		the reporting	reporting	reported in	reporting	reporting	reporting	reporting	Accounting		Sources of
securities	code	abbreviation	cost	model		period	period	equity	period	period	period	period	items		funding
Domestic and	GLN	GLN	18,654.22	Measured at fair		32,798,842.85	19,532,364.16	20,129,060.07				52,633,650.21	Tradable		Internal funds
foreign shares					values									financial
														assets
Domestic and	RICH	Raffles		Measured at fair		5,955,974.39	176,759.48	3,803,339.28				6,174,031.34	Other		Internal funds
foreign shares		Financial			values									noncurrent
		Group												financial
		Limited												assets
Domestic and	TAR	TAR	340,435.98	Measured at fair		6,011,912.75	-845,580.12	3,990,177.71		58,544.63	105,271.71	5,147,544.14	Tradable		Internal funds
foreign shares					values									financial
														assets
Domestic and	OKR	okapi	5,560,290.71	Measured at fair		4,694,416.10	-527,768.81	-1,005,440.83				4,198,160.43	Tradable		Internal funds
foreign shares					values									financial
														assets
Domestic and	LCD	LCD	1,119,351.59	Measured at fair		1,862,017.63	683,000.23	713,128.96		347,950.93	385,127.42	2,212,728.02	Tradable		Internal funds
foreign shares					values									financial
														assets
Domestic and	ORGN	Origen		Measured at fair		1,227,864.56	246,013.88	274,944.21				1,483,481.69	Other		Internal funds
foreign shares		Resources			values									noncurrent
		Inc.												financial
														assets
Domestic and	MLL	MLL	2,494,427.58	Measured at fair		1,213,502.01	187,989.01	-1,348,335.61				1,410,786.55	Tradable		Internal funds
foreign shares					values									financial
														assets
Domestic and	DHR	DHR	5,154,870.59	Measured at fair		1,189,683.39	-12,588.39	-4,104,493.89				1,185,510.49	Tradable		Internal funds
foreign shares					values									financial
														assets
Domestic and	AMD	AMD	1,883,647.95	Measured at fair		389,871.71	51,179.36	-1,550,287.99				444,004.87	Tradable		Internal funds
foreign shares					values									financial
														assets
Domestic and	COB	COB	1,422,309.47	Measured at fair		632,053.49	142,725.60	-140,456.43		779,779.44	615,148.94		Tradable		Internal funds
foreign shares					values									financial
														assets
Other securities investments held at the end of				–			-2,126,129.04		32,321,170.20			30,195,041.16	–		–
the reporting period
Total			17,993,988.09	–		55,976,138.88	17,507,965.36	20,761,635.48	32,321,170.20	1,186,275.00	1,105,548.07	105,084,938.90	–		–
Disclosure date of the Board’s announcement			March 28, 2019
on approval of	securities investments
Disclosure date of the general		meeting	June 11, 2019
announcement on approval of securities
investments (if	any)

– 16 –

2. Investments in derivatives

Applicable ✓ Not applicable

The Company does not have derivatives investment during the reporting period.

V. Progress of projects financed by the proceeds

✓ Applicable Not applicable

(I) Proceeds raised from public issuance of convertible corporate bonds in August 2020

1. Amount of actual proceeds and time of receipt of proceeds

As approved by the China Securities Regulatory Commission (Zheng Jian Xu Ke [2020] No. 1398), the Company was allowed to publicly issue 21,080,000 convertible corporate bonds at par value of RMB100 each, raising a total amount of RMB2,108 million with a term of six years. The total amount of proceeds raised from the public issuance of convertible corporate bonds was RMB2,108 million, and the actual funds of RBM2,093 million received from the subscription for convertible corporate bonds, after deducting the underwriting fee and sponsoring fee of RMB15 million, was remitted by Ping An Securities Co., Ltd., the lead underwriter, to the custodial account for the proceeds of the Company on August 13, 2020. After deducting the legal fees, auditing and capital verification fees, credit rating fees, evaluation fees, information disclosure fees and other issuance fees of RMB2,674,800, the net amount of actual proceeds amounted to RMB2,090,325,200. The amount of actual proceeds raised from the public issuance of convertible corporate bonds was verified by the Capital Verification Report (An Yong Hua Ming (2020) Yan Zi No. 61390246_B01) issued by Ernst & Young Hua Ming LLP.

1. Use and balance of proceeds

Prior to the actual availability of the proceeds, the Company had invested its self-raised funds in advance and replaced with the proceeds on August 19, 2020, among which, RMB212,179,900 was invested in the 10,000-ton Lithium Salt Reconstruction and Expansion Project in advance and RMB1,072,000,000 was invested in the Subscription of Certain Equity Interest in Minera Exar S.A in advance, with a total amount of RMB1,284,179,900. Such replacement amount invested in advance was verified by the Specific Verification Report (An Yong Hua Ming (2020) Zhuan Zi No. 61390246_B06) issued by Ernst & Young Hua Ming LLP.

– 17 –

The amount of proceeds actually utilized during the Reporting Period was RMB38,730,100, which had been totally used for ten thousand tonne lithium salt renovation and expansion. As at the end of the Reporting Period, the Company had utilized proceeds of RMB1,908,987,200 in aggregate and the balance of unutilized proceeds is RMB187,625,300.

(II) Proceeds raised from the issuance of additional H shares

On 16 September 2020, the Company placed 40,037,000 H Shares at the placing price of HK$36.35 per H Share. The actual proceeds raised amounted to HK$1,449,411,500 after deduction of all of applicable issuance cost. The amount of proceeds raised from the issuance of additional H shares actually utilized during the Reporting Period was RMB804,324,600. As at the end of the Reporting Period, the Company had utilized proceeds raised from the issuance of additional H shares of RMB1,237,124,000 in aggregate and the balance of unutilized proceeds is RMB1,258,100.

VI. Forecast on the results of operations for January to June 2021

Warning in relation to the probable loss of accumulated net profit from the beginning of the year to the end of the following reporting period or substantial change as compared with the same period of the last year and explanation of the reasons thereof

✓ Applicable Not applicable

Estimated results of operations: up year-on-year

Data type of the estimated results of operations: interval value

	From the beginning of the year	From the beginning of the year	The corresponding
	till	the end of the reporting period	period of last year		Increase/decrease
Estimated cumulative net		80,000 – 120,000	15,648.52	Increase	411.23%	–	666.85%
profit (RMB0’000)
Basic earnings per share		0.59 – 0.88	0.12	Increase	391.67%	–	633.33%
(RMB/share)
Reason for the forecast	1.	Both sales volume and sales price of the lithium salt products of the Company increased;
on the results	2.	The volume of lithium battery products of the Company		gradually	increased.

– 18 –

VII. Material Contracts entered into in the daily course of operation

✓ Applicable Not applicable

Total Name of one party Name of the counterparty contract Total Recovery of to the contract of the contract Contract subject Total contract amount amount contract amount accounts receivable The Company and Bayerische Motoren Werke Lithium chemicals Depending on the needs of Ongoing Unable to disclose Within the credit GFL International Aktiengesellschaft ( 德國 BMW Germany according to period Co., Limited 寶馬 ) confidentiality terms The Company and Tesla Inc. ( 特斯拉 ) Battery grade lithium Annual purchase volume Ongoing Unable to disclose Within the credit GFL International hydroxide product equal to approximately according to period Co., Limited 20% of the Company’s confidentiality terms total production capacity for Battery grade lithium hydroxide product in the same year The Company and LG Chem, Ltd (LG 化學 ) Lithium hydroxide, The lithium hydroxide and Ongoing Unable to disclose Within the credit GFL International lithium carbonate lithium carbonate products according to period Co., Limited products, etc sold or to be sold by confidentiality terms the Company and GFL International Co., Limited to LG Chem from January 1, 2019 to December 31, 2025 totaling 92,600 tons

Material deviation of the progress of the material contracts from the agreement of the contracts which affects over 30% of the contract amount

==> picture [243 x 19] intentionally omitted <==

VIII. Entrusted wealth management

==> picture [243 x 19] intentionally omitted <==

The Company did not have any entrusted wealth management during the Reporting Period.

– 19 –

IX. Violation of regulations in relation to the provision of guarantee to external parties

Applicable

✓ Not applicable

The Company has not breached any requirements in relation to the provision of guarantee to external parties during the Reporting Period.

X. The listed company’s non-operating capital occupied by controlling shareholders and their related parties

Applicable ✓ Not applicable

No non-operating capital of the listed company was occupied by controlling shareholders and their related parties in the Company during the Reporting Period.

XI. Activities of receiving investigation and research, communication and interview during the Reporting Period

✓ Applicable

Not applicable

Index of basic Type of Main content information of reception discussed and investigation and Reception time Reception place Reception method object Reception object information provided research January 15, 2021 The conference room on Field investigation and Institution Haitong Securities: Shi Yi, Company’s operating For details, please the 4th floor of the R&D research Zhou Xuhui and Gan conditions and basic refer to the Building of the Company Jiayao; Broad Fund: Zhang industry conditions record of investor Bin; BoCommLife: Guo relations activities Hao; E Fund: Hu Yunfeng; disclosed on Western Leadbank Fund: the website of Zoulingling; Dacheng CNINFO ( 巨潮 Fund: Zhao Peng and Chen 資訊網 ) on Ming; ZhongRong Fund: January 18, 2021 Zhu Xiaoming; ABC-CA: Zhou Zihan

Reception time

– 20 –

SECTION 4 FINANCIAL STATEMENTS

I. Financial statements

1. Consolidated balance sheet

Prepared by: Ganfeng Lithium Co., Ltd. March 31, 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 Held-for-sale assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets	March 31, 2021 2,443,025,301.78 101,023,379.23 1,363,392,706.99 512,444,851.09 801,113,475.68 52,642,464.80 2,467,117,301.54 563,689,982.21 8,304,449,463.32	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

– 21 –

March 31, 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	385,487.73 1,858,718,342.42 1,243,877,984.50 73,276.70 2,260,955,511.25 3,970,557,060.36 26,820,512.59 3,496,492,367.66 29,521,012.54 77,849,012.63 31,046,333.70 2,006,948,122.33 15,003,245,024.41 23,307,694,487.73	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

– 22 –

March 31, 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	1,435,985,032.41 381,798,010.80 973,382,575.72 66,345,161.65 58,994,822.65 193,775,903.94 77,298,615.95 1,249,295,210.29 4,436,875,333.41	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

– 23 –

March 31, 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	1,885,984,120.00 1,557,422,725.56 23,491,509.58 628,368,961.55 7,330,653.14 61,772,823.73 34,636,596.91 31,627,983.02 4,230,635,373.49 8,667,510,706.90	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

– 24 –

Item March 31, 2021 December 31, 2020

Owners’ equity:
Share capital	1,355,928,726.00		1,339,960,580.00
Other equity instruments	430,160,861.40		582,380,688.55
Including: Preferred shares
Perpetual bonds
Capital reserve	5,587,294,483.65		4,842,886,594.85
Less: treasury share
Other comprehensive income	-190,741,990.83		-256,853,368.27
Special reserve	4,708,710.36		5,939,997.38
Surplus reserve	399,484,997.94		399,484,997.94
General risk reserve
Undistributed profits	4,267,919,504.11		3,791,822,949.39
Total of the equity attributable to the
owners of the parent company 11,854,755,292.63			10,705,622,439.84
Minority interests	2,785,428,488.20		2,712,780,922.60
Total owners’ equity	14,640,183,780.83		13,418,403,362.44
Total liabilities and owners’ equity 23,307,694,487.73			22,020,373,319.53
	Head of the Accounting
Legal representative:	Chief Accountant:	Department:
Li Liangbin	Yang Manying	Huang Ting

– 25 –

2. Balance sheet of the Parent Company

Unit: RMB Yuan

Item Current assets: Monetary fund Financial assets held for trading Derivative financial assets Bills receivable Accounts receivable Financing receivables Prepayments Other receivables Including: Interest receivable Dividend receivable Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets	March 31, 2021 December 31, 2020 1,617,177,732.37 1,187,394,782.99 30,195,041.16 34,145,510.00 382,346,477.05 262,127,646.25 244,429,291.03 203,618,389.08 25,307,990.40 14,372,272.51 2,898,213,081.81 2,436,730,191.75 1,255,948,802.76 1,399,087,274.35 398,033,657.12 1,665,195,049.21 6,851,652,073.70 7,202,671,116.14	March 31, 2021 December 31, 2020 1,617,177,732.37 1,187,394,782.99 30,195,041.16 34,145,510.00 382,346,477.05 262,127,646.25 244,429,291.03 203,618,389.08 25,307,990.40 14,372,272.51 2,898,213,081.81 2,436,730,191.75 1,255,948,802.76 1,399,087,274.35 398,033,657.12 1,665,195,049.21 6,851,652,073.70 7,202,671,116.14
		7,202,671,116.14

– 26 –

March 31, 2021 December 31, 2020

Item

Non-current assets: 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	8,078,714,111.31 246,165,501.37 73,276.70 722,577,033.49 639,808,097.36 139,042,512.26 110,113.86 12,230,000.00 9,838,720,646.35 16,690,372,720.05	7,595,257,222.83 39,789,720.55 73,584.59 734,169,085.17 548,866,827.66 129,756,400.18 121,504.95 165,000,000.00
		9,213,034,345.93
		16,415,705,462.07

– 27 –

March 31, 2021 December 31, 2020

Item

Current liabilities:

Short-term borrowings 1,049,149,533.34 1,321,783,937.89 Financial liabilities held for trading Derivative financial liabilities Bills payable 377,600,000.00 300,300,000.00 Accounts payable 240,192,078.90 445,886,924.38 Advances from customers Contract liabilities 10,461,016.00 11,221,353.10 Staff salaries payable 9,542,696.93 16,782,528.98 Taxes payable 105,097,138.40 55,277,338.62 Other payables 652,258,079.19 724,453,281.46 Including: Interest payable Dividend payable Liabilities held for sale Non-current liabilities due within one year 1,231,478,576.87 653,410,909.44 Other current liabilities Total current liabilities 3,675,779,119.63 3,529,116,273.87 Non-current liabilities: Long-term borrowings 1,481,484,120.00 1,517,008,360.00 Bonds payables 1,557,422,725.56 2,133,824,297.91 Including: Preferred shares Perpetual bonds Lease liabilities Long-term payables Long-term staff salaries payable Accrued liabilities Deferred income 19,286,651.30 21,033,049.62 Deferred income tax liabilities 25,791,843.43 43,543,509.97 Other non-current liabilities Total non-current liabilities 3,083,985,340.29 3,715,409,217.50 Total liabilities 6,759,764,459.92 7,244,525,491.37

– 28 –

March 31, 2021 December 31, 2020

Item

Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve Less: treasury share Other comprehensive income Special reserve Surplus reserve Undistributed profits Total owners’ equity **Total liabilities and owners’ equity **	1,355,928,726.00 430,160,861.40 5,379,264,079.08 -1,082,620.23 112,918.45 399,484,997.94 2,366,739,297.49 9,930,608,260.13 16,690,372,720.05	1,339,960,580.00 582,380,688.55 4,634,856,190.28 -1,082,620.23 1,461,616.13 399,484,997.94 2,214,118,518.03
		9,171,179,970.70
		16,415,705,462.07

– 29 –

3. Consolidated Income Statement

Unit: RMB Yuan

		Amount for	Amount for
Item		the current period	the previous period
I.	Total operating revenue	1,606,822,673.47	1,078,841,300.29
	Including: Operating income	1,606,822,673.47	1,078,841,300.29
	Interest income
	Premiums earned
	Fees and commission
	income
II.	Total operating costs	1,252,830,163.14	1,003,637,289.39
	Including: Operating costs	1,106,905,559.79	868,787,025.45
	Interest expense
	Fees and commission
	expense
	Surrender payment
	Net expenditure for
	compensation
	payments
	Net provision for
	insurance liabilities
	Expenditures for
	insurance policy
	dividend
	Reinsurance expenses
	Tax and surcharge	12,547,060.30	4,977,622.54
	Selling expenses	12,613,182.99	18,594,758.76
	Administrative
	expenses	32,362,547.44	23,299,322.84
	Research and
	development
	expenditure	36,662,880.63	21,606,335.99
	Finance expenses	51,738,931.99	66,372,223.81

– 30 –

			Amount for	Amount for
Item			the current period	the previous period
		Including: Interest costs	49,355,364.73	60,904,900.72
		Interest income	47,777,419.58	27,088,396.41
	Add:	Other revenue	10,248,811.07	8,811,602.91
		Investment income
		(“-” denotes loss)	3,351,565.98	28,381,463.62
		Including: Share in
		profit of associates
		and joint ventures	-5,587,272.92	8,947,883.33
		Gains on derecognition
		of financial assets
		measured at
		amortised cost
		Foreign exchange gain
		(“-” denotes loss)
		Gain from net exposure
		to hedging (“-”
		denotes loss)
		Gain on change in fair
		value (“-” denotes
		loss)	165,131,227.74	-87,696,997.81
		Impairment loss of
		credit (“-” denotes
		loss)	-1,082,003.91	-1,055,676.05
		Impairment loss of
		assets (“-” denotes
		loss)	1,001,934.69	-40,889.62
		Gains on disposal of
		assets (“-” denotes
		loss)		-26,622.39

– 31 –

Amount for Amount for Item the current period the previous period

III.	O perating profit (“-” denotes	O perating profit (“-” denotes
	loss)		532,644,045.90	23,576,891.56
	Add:	Non-operating income	147,956.32	480,193.17
	Less:	Non-operating expense	180,367.90	782,470.75
IV.	T otal profit (“-” denotes total
	loss)		532,611,634.32	23,274,613.98
	Less:	Income tax expenses	38,949,407.24	17,694,902.16
V.	Net profit (“-” denotes net loss)		493,662,227.08	5,579,711.82
	(I)	C lassified by business
		continuity
		1. N et profit from
		continuing operations
		(“-” denotes net loss)	493,662,227.08	5,579,711.82
		2. N et profit from
		discontinued
		operations (“-”
		denotes net loss)
	(II)	N et profit attributable to the
		owners
		1. N et profit attributable
		to the owners of the
		parent company	476,096,554.72	7,746,065.51
		2. Minority interests	17,565,672.36	-2,166,353.69

– 32 –

				Amount for	Amount for
Item				the current period	the previous period
VI.	N et other comprehensive income
	after tax			86,561,511.18	82,548,709.99
	Net amount of other comprehensive
		income after tax attributable
		to the equity holders of the
		Company		66,111,377.44	80,693,199.19
	(I)	O ther	comprehensive income
		that	cannot be reclassified
		into	profit or loss
		1.	C hanges arising from
			the re-measurement of
			defined benefit plans
		2.	O ther comprehensive
			income that cannot be
			transferred to profit
			or loss under equity
			method
		3.	C hanges in fair value
			of investment in other
			equity instruments
		4.	C hanges in fair value of
			the Company’s own
			credit risk
		5. Others
	(II) O ther		comprehensive income
		that	will be reclassified into
		profit or loss		66,111,377.44	80,693,199.19
		1.	O ther comprehensive
			income that can be
			transferred to profit
			or loss under equity
			method		-399,200.31
		2.	C hanges in fair value of
			other debt investments
		3.	A mount of financial
			assets reclassified into
			other comprehensive
			income

– 33 –

			Amount for	Amount for
Item			the current period	the previous period
		4. C redit impairment
		provisions for other
		debt investment
		5. C ash flow hedge
		reserve
		6. D ifference arising
		from the translation
		of foreign currency
		financial statements	66,111,377.44	81,092,399.50
		7. Others
	Net other comprehensive income
		after tax attributable to minority
		shareholders	20,450,133.74	1,855,510.80
VII.	Total comprehensive income		580,223,738.26	88,128,421.81
	Total comprehensive income
		attributable to the owners of the
		parent company	542,207,932.16	88,439,264.70
	Total comprehensive income
		attributable to minority
		shareholders	38,015,806.10	-310,842.89
VIII.	Earnings per share:
	(I)	Basic earnings per share:	0.36	0.01
	(II) Diluted earnings per share		0.36	0.01

For the business combination under common control effected in the current period, the net profit recognized by the merged party before the combination was RMB0.00, and the net profit recognized by the merged party in the previous period was RMB0.00.

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

– 34 –

4. Income Statement of the Parent Company

Unit: RMB Yuan

		Amount for	Amount for
Item		the current period	the previous period
I.	Operating income	869,047,697.59	641,871,323.91
	Less: Operating costs	619,913,508.68	553,954,180.21
	Tax and surcharge	9,159,809.01	2,767,350.29
	Selling expenses	5,240,452.37	6,896,986.37
	Administrative expenses	3,702,968.58	6,626,527.13
	Research and development
	expenditure	9,999,806.20	5,773,176.49
	Finance expenses	45,385,946.47	48,009,675.69
	Including: Interest costs	59,942,253.91	44,899,907.43
	Interest income	13,470,452.14	6,273,527.26
	Add: Other revenue	5,125,726.17	6,416,626.18
	Investment income (“-”
	denotes loss)	32,813,802.69	20,893,530.62
	Including: In vestment
	income from
	associates and
	joint ventures	21,066,212.69	384,107.19
	Gains on derecognition of
	financial assets measured
	at amortised cost
	Gain from net exposure to
	hedging (“-” denotes loss)
	Gain on change in fair value
	(“-” denotes loss)	-5,700,762.21	-524,394.44
	Impairment loss of credit (“-”
	denotes loss)	-29,307,835.27	2,274,730.61
	Impairment loss of assets (“-”
	denotes loss)		6,859,196.90
	Gains on disposal of assets
	(“-” denotes loss)

– 35 –

Amount for

the current period the previous period

Amount for

Item

II. O perating profit (“-” denotes loss) 178,576,137.66 53,763,117.60 Add: Non-operating income 69,569.22 433,675.55 Less: Non-operating expense 299.13 418,761.96 III T otal profit (“-” denotes total loss) 178,645,407.75 53,778,031.19 Less: Income tax expenses 26,024,628.29 8,066,704.68 IV. Net profit (“-” denotes total loss) 152,620,779.46 45,711,326.51 (I) Net profit from continuing operations (“-” denotes total loss) 152,620,779.46 45,711,326.51

III T otal profit (“-” denotes total loss) Less: Income tax expenses

• IV. Net profit (“-” denotes total loss)

• (II) Net profit from discontinued operations (“-” denotes net loss)

V. N et other comprehensive income after tax

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

• Changes arising from the re-measurement of defined benefit plans

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

• Changes in fair value of investment in other equity instruments

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

• Others

– 36 –

Amount for Amount for the current period the previous period

Item

• (II) O ther comprehensive income that will be reclassified into profit or loss

• 1. O ther comprehensive income that can be transferred to profit or loss under equity method
• 1. C hanges in fair value of other debt investments
• 1. A mount of financial assets reclassified into other comprehensive income
• 1. C redit impairment provisions for other debt investment
• 1. C ash flow hedge reserve
• 1. D ifference arising from the translation of foreign currency financial statements
• 1. Others

• VI. Total comprehensive income 152,620,779.46 45,711,326.51 VII. Earnings per share: (I) Basic earnings per share: (II) Diluted earnings per share

– 37 –

5. Consolidated Cash Flow Statement

Unit: RMB Yuan

		Amount for	Amount for
Item		the current period	the previous period
I.	C ash flow generated from
	operating activities:
	Cash received from selling goods
	and providing services	1,698,849,525.64	1,082,098,651.72
	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	825,737.04	9,693,832.15
	Cash received relating to other
	operating activities	74,079,066.10	32,672,240.43
	Sub-total of cash inflow from
	operating activities	1,773,754,328.78	1,124,464,724.30
	Cash paid for purchasing goods
	and receiving services	1,744,959,343.59	1,107,366,747.74

– 38 –

Amount for Amount for the current period the previous period

Item

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 Sub-total of cash outflow from operating activities Net cash flow generated from operating activities II. C ash 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	141,147,244.06 73,757,140.30 30,900,976.80 1,990,764,704.75 -217,010,375.97 1,392,255,065.65 8,938,838.90 110,802.72 16,513,426.14 1,417,818,133.41 315,244,118.40 1,163,978,247.22	101,375,575.10 20,989,665.41 33,313,169.06 1,263,045,157.31
		-138,580,433.01
		73,288,216.14 14,373,274.01 87,661,490.15 81,661,707.54 95,913,811.08

– 39 –

Amount for Amount for the current period the previous period

Item

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 III. Ca sh flow generated from financing activities: Cash received from investment Including: Cash 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 Cash paid for distributing dividends and profits and interest repayment Including: Dividends and profits paid by subsidiaries to minority shareholders Cash paid relating to other financing activities Sub-total of cash outflow from financing activities Net cash flow generated from financing activities	101,665,658.35 1,580,888,023.97 -163,069,890.56 2,041,232,921.00 2,041,232,921.00 1,320,204,800.00 44,204,987.38 19,251,803.04 1,383,661,590.42 657,571,330.58	328,143,969.21 505,719,487.83
		-418,057,997.68
		2,474,131,658.35 116,825,860.80 2,590,957,519.15 1,012,792,440.00 32,324,967.32 1,045,117,407.32
		1,545,840,111.83

– 40 –

Amount for Amount for the current period the previous period

Item

IV.	Ef fect of foreign exchange rate
	changes on cash and cash
	equivalents	-22,931,706.57	12,292,552.18
V.	Ne t increase in cash and cash
	equivalents	254,559,357.48	1,001,494,233.32
	Add: Ba lance of cash and cash
	equivalents at the
	beginning of the period	1,709,589,944.30	1,328,104,539.72
VI.	Ba lance of cash and cash
	equivalents at the end of the
	period	1,964,149,301.78	2,329,598,773.04

6. Cash Flow Statement of Parent Company

Item I. Ca sh flow generated from operating activities: Cash received from selling goods and providing services Refunds of taxes received Cash received relating to other operating activities Sub-total of cash inflow from operating activities Cash paid for purchasing goods and receiving services Cash paid to and for employees Cash paid for taxes Cash paid relating to other operating activities Sub-total of cash outflow from operating activities Net cash flow generated from operating activities	Amount for the current period 794,650,418.09 49,700,370.53 844,350,788.62 1,083,371,953.30 32,170,972.29 49,500,389.81 12,552,743.85 1,177,596,059.25 -333,245,270.63	Unit: RMB Yuan Amount for the previous period 859,595,620.34 9,124,668.41 28,386,277.91 897,106,566.66 838,347,159.19 28,328,104.80 7,574,052.62 15,692,879.65 889,942,196.26
		7,164,370.40

– 41 –

Item II. Ca sh 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 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 1,270,004,753.14 7,818,914.21 77,945.28 1,277,901,612.63 60,870,411.37 532,783,170.20 124,071,952.50 717,725,534.07 560,176,078.56	Amount for the previous period 73,146,343.81 505,601.69 73,651,945.50 55,545,529.92 141,712,319.75 10,993,849.72 208,251,699.39 -134,599,753.89

– 42 –

Amount for Amount for the current period the previous period

Item

III. Ca sh flow generated from financing activities: Cash received from investment Cash received from borrowings Cash received relating to other financing activities Sub-total of cash inflow from financing activities Cash paid for repaying debts Cash paid for distributing dividends and profits and interest repayment Cash paid relating to other financing activities Sub-total of cash outflow from financing activities Net cash flow generated from financing activities IV. Ef fect of foreign exchange rate changes on cash and cash equivalents V. Ne t increase in cash and cash equivalents Add: Ba lance of cash and cash equivalents at the beginning of the period VI. Ba lance of cash and cash equivalents at the end of the period	1,470,000,000.00 1,470,000,000.00 1,217,704,800.00 34,448,306.23 6,375,803.04 1,258,528,909.27 211,471,090.73 -8,618,949.28 429,782,949.38 776,394,782.99 1,206,177,732.37	2,374,131,658.35 4,500,000.00 2,378,631,658.35 1,012,792,440.00 26,872,120.11 1,039,664,560.11
		1,338,967,098.24
		10,413,769.50 1,221,945,484.25 706,265,730.39 1,928,211,214.64

– 43 –

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 first quarterly report been audited

Yes ✓ No

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

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

Jiangxi, PRC April 28, 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.

– 44 –