Full Sail Ahead for a New Voyage

As the New Year's bell echoes amid the coconut breeze and ocean waves of the Free Trade Port, on this occasion of bidding farewell to the old and welcoming the new, I hereby extend my sincere gratitude and best wishes to all friends from all walks of life who have long supported Hainan Mining's development on behalf of the company!

2025 was a year of deepening strategic transformation, overcoming challenges, and achieving fruitful results for Hainan Mining. Standing at the new starting point of 2026, I am full of confidence to review the past achievements and look forward to the future development blueprint with all of you.

In 2025, technological innovation ignited a new engine for output growth: the magnetic roasting technical renovation project steadily advanced full-process production commissioning, and the in-depth development of smart mine construction injected new digital momentum into the traditional iron ore industry;Roc Oil’s Bajiaochang Gas Field achieved a daily output exceeding 4.7 million cubic meters, hitting a new historical high, while the Weizhou 10-3 West Oilfield development project entered the final sprint stage and is scheduled to be put into operation in the first quarter of 2026; the Xingzhihai Lithium Salt Project was successfully commissioned, and 30,000 tons of lithium concentrate from the Bougouni Lithium Mine in Mali was shipped to Hainan, realizing a closed-loop integrated industrial chain of "own high-quality mines + high-grade advanced processing production lines" and providing solid support for the company to build core competitiveness in the lithium industry.

This year, industrial investment expanded the new territory of resources. In August, we increased capital by 300 million yuan to take a stake in Luoyang Fenrui Fluorine Industry, extending our resource layout to fluorite ore, a strategic critical mineral, and continuously consolidating the diversified resource pattern.

This year, value returns gained new recognition from the market. We distributed dividends exceeding 200 million yuan in 2025, our Wind ESG rating rose to AA (ranking among the top 10% in the industry), and we won the Grade A evaluation for information disclosure from the Shanghai Stock Exchange for two consecutive years. Through compliant operation and sustainable development, we have responded to every trust placed in us.

Looking back on the 14th Five-Year Plan period, riding the east wind of the Hainan Free Trade Port, we anchored on the core track of strategic resources and accelerated the pace of global layout. Through strategic initiatives such as the acquisition of Roc Oil, Mali Lithium Mine, and Oman Oilfield, as well as the investment and construction of the Xingzhihai Lithium Salt Plant, we have completed the transformation and upgrading from a single iron ore business to an industrial layout of "iron ore + oil & gas + new energy", becoming the only A-share listed company spanning strategic minerals and energy.

From deep cultivation in the local market to global expansion, from the efficiency revolution in traditional mining to the pioneering of the new energy track, every leap forward is inseparable from the blessings of the times and embodies the wisdom and efforts of all Hainan Mining people.

In 2026, the Hainan Free Trade Port will enter a new era of island-wide customs closure and operation. This is not only a milestone in China's opening-up but also a historic window for Hainan Mining to become a world-class resource enterprise. Looking ahead, three major trends have become increasingly clear:

The global energy transition is advancing at an accelerated pace, and critical minerals such as lithium, fluorite, copper, and nickel have become the core support for new quality productive forces.

The geopolitical landscape is undergoing profound reshaping, and resource security has been elevated to a national strategy. Chinese enterprises are building an independent, controllable, safe, and efficient global resource supply chain with unprecedented intensity.

Technological innovation and green low-carbon development have become the main themes of mining development, and digital and intelligent transformation as well as "dual carbon" practice will be the dividing line in industry competition.

Looking forward to the new journey, Hainan Mining will firmly grasp strategic opportunities, be rooted in Hainan and face the world, adhere to the central goal of "sustainable and high-quality development", optimize the "two-wheel drive" of "industrial operation + industrial investment", and focus on four key directions:

Continuously strengthen resource control capabilities: focus on upstream strategic resources, increase efforts in the acquisition and development of high-quality global mineral resources, and improve resource self-sufficiency and risk resistance capabilities;

Enhance global operational capabilities: optimize the overseas asset management system, strengthen cross-cultural management and compliant operation, and build an internationally competitive resource enterprise;

Accelerate the construction of smart and green mines: fully promote digital and intelligent technologies, improve intrinsic safety levels, practice the "dual carbon" goal, and set a benchmark for green mining;

Adhere to the balance between shareholder returns and sustainable development: continuously optimize the governance structure, improve the quality of information disclosure, increase dividend intensity, and share development achievements with investors.

With full sail and strong wind, we embark on a new voyage; it is time to forge ahead with determination. In the new year, with new missions and new leaps, all Hainan Mining people will uphold the urgency to seize the moment, the courage to be pioneers, and the perseverance to persist for the long term. We will unite as one, forge ahead courageously, write a new chapter for Hainan Mining in the grand blueprint of the Free Trade Port construction, and make greater contributions to the country's strategic resource security!

On this New Year, I sincerely wish you all good health, smooth work, and happy families! May we work hand in hand, march towards the future, and create brilliance together!

Hainan Mining Co., Ltd.

Chairman and President: Teng Lei

January 1, 2026