Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Achieved a 75% washing water recycling rate, becoming the first in the industry to utilize this technology.
• Developed new extraction skills that significantly reduced auxiliary material consumption, lowering production costs and environmental pressure.
• Developed new production technologies for high-purity niobium pentoxide, reducing air pollution and environmental impact.

Social Achievements

• Established a comprehensive personnel management system, balancing labor and capital.
• Provided various employee benefits, including education subsidies, meal allowances, and social insurance.
• Maintained a safe working environment with no work-related fatalities or lost workdays due to injuries during the reporting period.

Governance Achievements

• Formulated an anti-commercial bribery agreement and implemented anti-corruption training and monitoring.
• Established clear procedures for whistleblowing and handling corruption allegations.
• Complied with relevant laws and regulations regarding intellectual property, sales, and quality control.

Climate Goals & Targets

Environmental Challenges

• Minimizing the environmental impact of exhaust gas and wastewater.
• Managing hazardous waste disposal.
• Reducing the use of packaging materials.

Mitigation Strategies

• Replaced exhaust gas treatment systems to reduce emissions.
• Implemented a fluoride salt recovery system to reduce harmful waste discharge.
• Improved water resource reuse rate through equipment adjustments and technical transformation.
• Recycled ton bags and PE bags to reduce packaging material usage.
• Temporarily stored hazardous waste in compliance with relevant standards, awaiting government-led disposal.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Business Partner Selection and Security Management Procedures

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO (mentioned but specific standards not listed)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility

Environmental Achievements

• Replaced exhaust gas treatment system to reduce disorganized emissions; organized exhaust gas emission met national emission standards.
• Implemented fluoride salt recovery system to reduce hazardous waste discharge and increase economic benefits.
• Improved water reuse rate to 75% through washing water recycling project.
• Developed new extraction process to reduce sulphate in niobium liquid and separate tantalum from niobium, significantly reducing accessories consumption.

Social Achievements

• Optimized human resource practices, improving terms of reference and promotion management channels.
• Provided regular training programs for employees, including introductory, safety, and technical training.
• Implemented measures to review employment practices to avoid child and forced labour.
• Formulated an Anti-fraud Management System to strengthen internal governance and control.

Governance Achievements

• Established a three-level ESG framework: Board, ESG Working Committee, and ESG Workgroup, each with well-defined duties.
• Strictly abides by relevant laws and regulations and prepares monthly discharge monitoring reports.
• Formulated an Anti-commercial Bribery Agreement to prevent bribery, extortion, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Potential risks from climate change, including extreme weather disrupting transportation, raw material supply, and product shipment.
• Potential water shortage in the regional water resource system.
• High-temperature operations prone to causing heatstroke.

Mitigation Strategies

• Developed emergency rescue plans for extreme weather, established an emergency rescue team, and conducted regular drills.
• Monitored raw material inventory and adjusted safe inventory levels to ensure stable supply.
• Enhanced safety awareness of construction workers and strengthened construction quality and risk control under extreme weather.
• Optimized water circulation system, increased recycling water use, and maintained two sets of water supply systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requires suppliers to provide environment-friendly products and services; abides by standard on Class 7 substances; implemented Management Measures for Radioactive Ores.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoon, rainstorm), transportation disruptions, flood

Transition Risks

• Policy and legal risks, transitional risks in technology, market, and reputation

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• High purity niobium pentoxide for lithium battery materials, industrial spherical niobium pentoxide

Awards & Recognition

• Specialised and Innovative Enterprise of Guangdong Province
• IP Demonstration Enterprise of Guangdong Province
• Pilot enterprise under the “Scheme of Supporting Excellence” of Qingyuan City
• Most Valuable Listed Company in the 14th Five-Year Plan Period under the Chinese Securities Golden Bauhinia Awards
• Best Energy and Resources Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Continuously optimized the recycling project; completed the construction and installation of the in-depth wastewater treatment project; upgraded and transformed the extraction line and other key equipment
• Significant reduction in emissions per unit of product and a more diversified energy mix at Ximei Guangdong

Social Achievements

• Implemented a share award scheme to share benefits with employees; promoted standardized and efficient management; established the “Ximei Lecture Hall”, improving employee training hours
• Donated RMB 1.2 million to various social welfare activities

Governance Achievements

• Improved internal rules development and risk management; increased frequency of investor communication; improved director diversity; no business ethics violations

Climate Goals & Targets

Environmental Challenges

• Significant fluctuations and rapid changes in the tantalum and niobium market; difficulties in economic recovery due to the pandemic; impact of pandemic prevention and control measures and interest rate hikes on production and operations

Mitigation Strategies

• All members of Ximei worked together and made concerted efforts, achieving new heights in various production and operational indicators; implemented a series of emission reduction measures, such as purchasing high-grade ore and recycling other useful substances from the waste residue

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Qualification verification and due diligence on potential suppliers, including environmental and ethical compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoon, rainstorm), transportation disruption, flood

Transition Risks

• Policy and legal risks; transitional risks in technology, market and reputation; impacts on energy supply, water resources, labour market, supply chain, productivity, customer demand and transportation network

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• High purity niobium pentoxide for lithium battery materials; industrial spherical niobium pentoxide; organic technology for optimisation of extraction and refinement; extraction pickling process; technology of utilising fluoride salt original solution instead of sulphuric acid for the exhaust gas treatment system

Awards & Recognition

• National high-tech enterprise; excellent enterprise of Guangdong Province; innovative enterprise of Guangdong Province; Guangdong Provincial Doctoral Workstation; technology specialist workstation; provincial intellectual property demonstration enterprise; provincial enterprise technology center; grade A taxpayer of Guangdong Province; engineering technology center; advantageous enterprise of intellectual property in Guangdong Province; national “Little Giant” specialised and innovative enterprise; Hong Kong – Guangdong Cleaner Production Partner (Manufacturing)

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Stably pushed forward resource recycling projects, continuously reduced resource consumption and emissions through process innovation; all emission indexes met the standards
• Successfully passed the cleaner production review through process transformations

Social Achievements

• Continuously improved the training system through the “Learning Platform”, induction mentors and other means to help employees improve their professional skills
• Implemented a share award scheme to share the benefits with employees for common development

Governance Achievements

• Continuously improved the governance system and enhanced the organization management efficiency
• Established the senior manager performance assessment and incentive system

Climate Goals & Targets

Environmental Challenges

• Significant price fluctuations and rapid changes of downstream demands in the tantalum and niobium market, affecting profit margins

Mitigation Strategies

• All members of Ximei worked hard together with determined goals, overcoming the negative effects caused by adverse factors and successfully fulfilling all work tasks of the year

Supply Chain Management

Supplier Audits: 68 suppliers in Mainland China, 11 in other regions

Responsible Procurement

• Raw Material Supplier Evaluation and Access Management System
• Business Partner Selection Management System
• Procurement Management System
• Supplier Admission Management Rules

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoon, rainstorm, flooding)
• High temperature
• Water shortage

Transition Risks

• Policy and legal risks
• Transitional risks in technology, market and reputation

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001

Awards & Recognition

• More than 40 awards and qualification certificates