Guotai Environmental Protection convened the 15th meeting of the 4th Board of Directors, reviewing and approving the "Proposal on Amending the Business Scope, Revising the , and Handling Industrial and Commercial Registration Changes." This adjustment not only represents a simple business expansion but also marks a key transformation of this traditional environmental protection enterprise into the field of new energy circular economy.

On February 24, Guotai Environmental Protection held its 15th meeting of the 4th Board of Directors, reviewing and approving the "Proposal on Amending the Business Scope, Revising the , and Handling Industrial and Commercial Registration Changes." This adjustment not only represents a simple business expansion but also marks a critical transformation of this traditional environmental protection enterprise into the field of new energy circular economy—adding businesses such as lithium-ion battery recycling, PV equipment leasing, and battery manufacturing, officially entering the rapidly growing closed-loop of the new energy industry chain. Guotai Environmental Protection's strategic adjustment is not accidental. In recent years, China's new energy vehicle industry has maintained rapid growth. Data shows that in 2025, China's NEV production and sales both achieved nearly 30% growth, with NEVs accounting for 47.9% of new vehicle sales. As early power batteries gradually enter their retirement phase, a massive backend market is accelerating its formation. Power battery recycling involves the collection, processing, and reuse of waste power batteries, aiming to promote resource circulation, protect the ecological environment, and drive long-term industry development. Currently, the standardized recycling rate for waste power batteries in China remains below 50%, with a large number of waste batteries flowing into informal channels such as "small workshops," posing environmental risks and causing the waste of strategic resources. Standardized recycling and utilization of retired power batteries are of great significance for reducing environmental pollution, ensuring the security of national critical metal resources, promoting industrial greening, and enhancing international competitiveness. In February 2025, the State Council Executive Meeting reviewed and passed the "Action Plan for Improving the NEV Power Battery Recycling and Utilization System," explicitly proposing to improve the standard system and achieve standardized, safe, and efficient recycling and utilization of power batteries. Shortly thereafter, six departments including the Ministry of Industry and Information Technology, the National Development and Reform Commission (NDRC), and the Ministry of Ecology and Environment jointly issued the "Interim Measures for the Recycling and Comprehensive Utilization of Waste Power Batteries from New Energy Vehicles," which will take effect on April 1, 2026. This upcoming regulation is regarded by the industry as a "watershed" for the sector. The "Management Measures" establish a "full life cycle" supervision system for power batteries, create a national traceability information platform for NEV power batteries, promote the monitoring of power battery flows and information traceability throughout their life cycle, and clarify the recycling responsibilities of power battery enterprises and NEV producers. This means that power battery recycling will shift from the past "guerrilla" operations to an era of "regular army" engagement. The introduction of the new regulation sets a clear "code of conduct" for the industry, aiming to resolve the structural contradiction between the "segmented" layout of the industry chain and the "full life cycle" management requirements, and to build a closed-loop chain of "production—use—recycling—regeneration."

To standardize the recycling and treatment of waste electrical and electronic products and effectively prevent and reduce environmental pollution, the Ministry of Ecology and Environment recently issued the "Technical Specification for Pollution Control in the Treatment of Waste Electrical and Electronic Products" (HJ 527—2026). The specification is expected to take effect on March 1 this year.

On June 10, 2025, the Ministry of Ecology and Environment (MEE) of the People's Republic of China officially announced the "Announcement on Matters Related to Regulating the Import Management of Recycled Black Mass Raw Materials for Lithium-ion Batteries and Recycled Steel Raw Materials".

On April 29, 2025, SMM Senior Director Jin Yu, Secondary Aluminum Head Weiquan Ding, International Recycling Head Xiaoyao Zhang, and Senior Aluminum Analyst Shihao Yang visited Hunan Tonghe New Material Co., Ltd. . They were warmly welcomed by Chairman Jingwei Qiu, Deputy General Manager Shuai Kang Qiu, and their team. Subsequently, both parties engaged in discussions and exchanges on the secondary aluminum market and the development of the non-ferrous metals landscape. Through this discussion, both sides enhanced their mutual understanding and recognition, laying a solid foundation for deepening cooperation and achieving mutual benefits in the future. Company Introduction Sustainable Development of Tonghe There is no such thing as waste in the world, only resources misplaced. Aluminum possesses excellent recyclability, allowing it to be reused multiple times without affecting its performance. The recycling of aluminum does not cause environmental pollution, with energy consumption being less than 5% of that required for primary aluminum production. The industrial process is short, with minimal emissions of harmful gases and dust. From the perspectives of resources, environment, market, as well as social and economic benefits, aluminum recycling is a cause that benefits the present and contributes to future generations. Driven by our pursuit of this noble cause, in 2018, eight companies—Hunan Hengxinrui Nonferrous Metals Co., Ltd., Miluo Ruishen Nonferrous Metals Co., Ltd., Miluo Guixin Nonferrous Metals Co., Ltd., Hunan Boji Nonferrous Metals Co., Ltd., Hunan Xinlong Yunyun Metal Products Co., Ltd., Miluo Xiongjun Nonferrous Metals Co., Ltd., Miluo CNGR Nonferrous Metals Co., Ltd., and Miluo Xiangheng Nonferrous Metals Co., Ltd.—were restructured to form the new Hunan Tonghe New Material Co., Ltd. We invested 200 million yuan in the Miluo Circular Economy Industrial Park in Hunan Province to build a new production facility with an annual capacity of 200,000 mt of die-cast aluminum alloy ingots and secondary aluminum billets. Based on the concept of industrial ecology, we adopted internationally advanced scientific technologies to improve the quality of secondary aluminum while minimizing or even eliminating the adverse environmental impacts of aluminum recycling. A garden-style secondary aluminum plant, surpassing international advanced standards, was established in the Miluo Circular Economy Industrial Park in Hunan. No matter how times change, Tonghe will always adhere to the development philosophy of integrity, conservation, environmental protection, and sustainable operation. We will continue to forge ahead, innovate boldly, and prioritize people, thereby fulfilling our social responsibility of united and harmonious development as Tonghe Company. SMM Contact Person Weiquan Ding 18029344837

As the world places greater emphasis on sustainable development, the recycling and reuse of metal resources not only effectively reduces resource waste but also mitigates environmental pollution, thereby promoting a green transformation of the economy.