Energy and Carbon Emissions Management-ZANGGE MINING COMPANY LIMITED

Against the backdrop of accelerated green and low-carbon transition, increasingly stringent resource constraints, and rising requirements for high-quality development, Zangge Mining has incorporated energy and carbon emissions management into its sustainability framework. Focusing on policy development, technological upgrades, digital management and control, and full employee participation, the Company continues to improve energy use efficiency and low-carbon operational capabilities. The Company coordinates the implementation of energy conservation and consumption reduction, structural optimization, and carbon emissions management, continuously enhancing resource utilization efficiency and resilience for green development.

Energy Management

Zangge Mining follows the principles of “safety first, reasonable planning, and scientific energy use,” and continues to improve its energy management policies and operating mechanisms, integrating energy management throughout the full process of production and operations. Focusing on key areas such as energy metering, process control, energy efficiency improvement, and energy-saving upgrades, the Company promotes standardized and refined management of energy use, continuously improves energy utilization efficiency, and lays a solid foundation for green and low-carbon operations.

Carbon Emissions Management

The Company continues to advance the management of greenhouse gas emissions statistics, accounting, and disclosure, and promotes the coordinated integration of carbon emissions management with energy management, production and operations, and cleaner production. During the reporting period, the Company continued to disclose Scope 1 and Scope 2 emissions data, and further expanded the identification and statistical tracking of Scope 3 emissions, providing data support for the optimization of its emissions reduction pathway and the advancement of low-carbon transition. At the same time, the Company continued to enhance its low-carbon operational capabilities through measures such as green electricity procurement and electrification substitution.

Energy Governance and Organizational Support

Zangge Mining follows the principles of “safety first, reasonable planning, and scientific energy use,” and continues to improve its full-process energy management policy system, promoting the deep integration of energy management with production and operations. During the reporting period, the Company’s subsidiary production enterprises effectively implemented policies and procedural documents such as the Energy Management System, Energy Consumption Metering Management System, and Energy Conservation Reward System. They also completed the revision of the Energy Management Manual in accordance with industry-specific standards, continuously strengthening the standardized foundation of energy management. As of the end of the reporting period, the ISO 50001 energy management system certification coverage of the Company’s subsidiary production enterprises, Zangge Potash Fertilizer and Zangge Lithium, reached 100%. The Company has also established regular internal and external audit mechanisms to continuously improve its energy management performance.

Impact, Risk and Opportunity Management

Energy consumption is one of the important environmental impact factors in the Company’s production and operation processes. The use of energy such as natural gas and electricity is not only related to production cost control, but also directly affects greenhouse gas emissions and resource utilization efficiency. Zangge Mining continues to identify risks and opportunities associated with energy use, and continuously reduces adverse impacts while improving energy use efficiency and low-carbon operational capabilities through measures such as energy-saving upgrades, structural optimization, green substitution, and management improvement.

Energy Impact Identification

Energy consumption is one of the important environmental impact factors in the Company’s production and operation processes. The use of energy such as natural gas and electricity is not only related to production cost control, but also has an impact on greenhouse gas emissions and resource utilization efficiency. The Company reduces the adverse impacts of energy use on the environment and operations by continuously advancing energy-saving upgrades and optimizing energy management. Through regular energy audits and day-to-day energy management, the Company focuses on identifying the following risks and opportunities, and implements a series of management and response measures to continuously improve energy use efficiency and the precision of energy management.

Energy Management Strategy

Zangge Mining follows the energy management direction of “energy conservation in accordance with the law, continuous improvement, development and innovation, and cost reduction and efficiency enhancement.” Focusing on key areas such as technological upgrading, structural optimization, digital management and control, and full employee participation, the Company continues to promote the coordinated integration of energy management with green and low-carbon development. Taking into account its actual production and operation conditions, the Company continuously optimizes its energy use structure and management pathways, and systematically advances key tasks such as energy conservation and consumption reduction, clean energy use, and digital empowerment. These efforts continuously improve energy use efficiency and refined management, providing support for the Company’s stable operations and low-carbon transition.

Development of the Energy Management System

The Company continues to improve its energy management policy system and promotes the coordinated advancement of policy development, standards benchmarking, and system operation. During the reporting period, its subsidiary production enterprises, Zangge Potash Fertilizer and Zangge Lithium, continued to advance the operation and optimization of the ISO 50001 energy management system, maintaining 100% certification coverage.

At the same time, taking into account actual production and operation conditions, the Company revised and improved energy management-related policy documents and management manuals, strengthened internal audit and continuous improvement mechanisms, and continuously consolidated the foundation for standardized and regulated energy management.

Energy Management System Development Measures

Training, Communication and Capability Enhancement

Focusing on policies and procedures, practical skills, equipment operation, and energy efficiency monitoring, the Company continues to carry out energy management training and energy conservation communication activities, promoting the integration of energy management concepts into production, operations, and office scenarios.

Organizational Support and Responsibility Implementation

The subsidiary production enterprises have established and implemented a three-tier energy management structure covering the company, departments/workshops, and teams. They have also set up energy working leading groups, clarified the boundaries of energy management responsibilities at each level and across departments, and coordinated the advancement of energy strategy planning, target setting, and execution supervision.

Audit Supervision and Continuous Improvement

The Company has established a regular audit mechanism. It conducts an internal audit of its energy management system once a year and commissions a third-party institution to conduct an external audit every three years. These audits help promptly identify weaknesses in system operation and promote issue rectification and continuous improvement.

Certification Coverage and System Operation

In 2025, the ISO 50001 energy management system certification coverage of the Company’s subsidiary production enterprises, Zangge Potash Fertilizer and Zangge Lithium, remained at 100%. The Company continued to optimize system operation in accordance with relevant standards, ensuring the effective implementation of energy management responsibilities, processes, and requirements throughout the full production process.

Policy Revision and Standards Benchmarking

The Company strictly complies with relevant laws and regulations, and continues to improve policy documents such as the Energy Management System, Energy Consumption Metering Management System, and Energy Conservation Reward System. It has also completed the revision of the Energy Management Manual, promoting the effective alignment of energy management requirements with actual production and operation conditions.

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