On January 18-19, Huayou Cobalt's 2024 working conference was convened at its Tongxiang headquarter. The Group Chairman, Chen Xuehua, delivered a keynote speech titled Persist in Transformational Development, Firmly Uphold Strategic Orientation, and Pioneer Progress for the Company's High-Quality Development.

In retrospect of the work of 2023, Chairman Chen reflected on navigating the uncommon year amid unprecedented industry changes. Confronted with early arrival of overcapacity, a swiftly changing supply-demand dynamic, and fierce market competition the company strategically responded both domestically and internationally. Emphasizing stage-specific characteristics and seizing developmental opportunities, Huayou Cobalt implemented strategies focused on excellence and quality advancement. The company embraced a comprehensive management approach, strengthening safeguards, optimizing structures, and mitigating risks. Efforts were intensified to harmonize production, supply, and market dynamics, align resources and capacities with demands, and closely monitor market trends and customer relations. Upholding the indomitable spirit of Huayou Cobalt, characterized by relentless self-improvement and excellence, the company met its greatest challenges with its finest performance, achieving stable operational results and maintaining a positive growth trajectory.

"In 2023, we confronted the most formidable challenges in our best state, evolving through difficulties, progressing in adversity, and elevating in the face of challenges. We reaped substantial results in our pursuit of excellence and quality development, a remarkable and extraordinary achievement," Chairman Chen expressed. He extended sincere gratitude to Huayou employees at home and abroad for their diligent efforts and struggle. Their hard work led to continuous growth in the production and sales volumes of main products, a steady rise in market share, the establishment of significant domestic and international projects like the Zimbabwe lithium mine, Huafei in Indonesia, Quzhou and Yulin electric nickel, and precursor materials. The company propelled complete coverage of leading talents in the industry chain, comprehensive IPD development for major customers and main products, reaching new heights in open development, and making breakthroughs in green development.

"The greater the difficulty, the more we must adhere to 'Trinity' transformational development; the tougher the challenge, the firmer we must be in the 'two new areas and three trends'; the more arduous the situation, the more we must push forward the 'ten year mission completed in five' process. " After analyzing the macro-industrial environment and the company's strategic positioning, Chairman Chen stated that regardless of industry shifts and the challenges in corporate transformation, Huayou's confidence in the industry, direction of transformation, and commitment to 'ten-year mission completed in five' remain steadfast. In 2024, facing a severe industrial landscape and complex operational environment, we shall persist in transformational development, stay firm in strategic orientation, construct a technologically advanced, green, and open Huayou, striving for progress amid stability and success amid advancement, building three pillars for the perpetual foundation of the company, and providing robust support for its high-quality development.

Establishing a Technological Huayou

Driven by high technology to propel high-quality development of the company

We shall vigorously implement the "industry-supporting, future-leading" science and innovation strategy, maintaining stable investment in research, providing robust technological backing for the 'product leadership, cost leadership' competitive strategy. We shall hasten technological advancement, focusing on breakthroughs in critical core technologies of high energy density, high power, low cost, and ultra-long cycle new energy lithium battery materials. We shall promote complete coverage of leading talents across the industry chain, comprehensive IPD development for dominant products. We are committed to constructing a high-level scientific research team, consisting of international leading talents, young scientific and technological talents, and high-end industrial talents, to augment the company's capacity for independent innovation.

Establishing a Green Huayou

Sustainably supporting the company's high-quality development

We shall vigorously implement the "low-carbon, green, sustainable" transformation strategy, beyond the existing four zero-carbon factories, continuing to develop zero-carbon factories and parks, engaging in green design, strengthening green manufacturing, and establishing green factories. We shall enhance responsible management of the supply chain for resources such as cobalt, nickel, lithium, and build a green supply chain. We are committed to constructing an ESG management system, reinforcing compliant operations, establishing an integrity-based enterprise, fulfilling social responsibilities comprehensively, and enhancing the company's sustainable development capacity.

Establishing an Open Huayou

We shall vigorously implement the " Build Together, Win the future together" open strategy, promoting open cooperation across the entire industry chain including resource development, green smelting, material manufacturing, and recycling. We shall accelerate the internationalization process, consolidating African resource bases, expanding the Indonesian industrial park, building European material factories, and strategizing American industry layout. In the process of industry chain opening and internationalization, we shall strengthen the transnational operational pattern of overseas resources, domestic manufacturing, and global markets. Huayou's internationalization is imperative, and we shall step onto the global stage through openness.

"The more challenging it becomes, the more we need to grit our teeth, stand firm, and bolster our confidence. We steadfastly believe in Huayou's promising future; all greatness is born from struggle." In this pivotal year of ''Trinity'' transformational development, deepening the strategic orientation of “Two New Areas and Three Trends”, and the year of promoting the “Ten Year Mission Completed in Five”, amidst industry reshuffling and survival of the fittest, Chairman Chen called on all Huayou employees to confront difficulties, break through challenges, constantly strengthen themselves, strive for excellence, adhere to transformational development, firm in strategic orientation, and actively promote the high-quality development of the company.

The conference also included the 2024 performance contract signing ceremony, commitment speeches by representatives, the 2023 Advanced Award Ceremony, and several other agendas.