Dear Valued Shareholders,
 
During 2024, the global economy continued its post-pandemic recovery, with major economies experiencing varying degrees of growth. However, geopolitical tensions and the rise of trade protectionism posed challenges to global trade and investment environments. Despite these hurdles, emerging markets and developing economies leveraged internal demand and regional cooperation to drive global economic growth. In China, despite facing complex and severe internal and external environments, government stimulus measures facilitated a recovery, with the economy showing a quarter-by-quarter rebound throughout the year.
 
In recent years, the manganese industry has been at the intersection of stable traditional applications and burgeoning new demands. The structural growth driven by battery materials has become a core focus, though caution is warranted regarding risks of overcapacity and technological substitution. China’s increasingly stringent environmental regulations have prompted enterprises to enhance environmental management, promote clean production, and achieve green development. As a leading global producer and consumer of manganese, China’s industry performance in 2024 was notable. The government introduced a series of supportive policies encouraging technological innovation and industrial upgrading, propelling high-quality development within the manganese sector.
 
Safe Production and Green Mining
 
Throughout the year, the Group remained steadfast in upholding safety and environmental responsibilities. We reinforced accountability, implemented safety protocols, and further refined relevant systems and plans, strengthening the foundation of our safety and environmental management. Emphasis was placed on safety education and training to enhance employees’ protective skills. We comprehensively advanced the construction of safety culture demonstration enterprises, effectively preventing and curbing various production safety incidents.
 
During the year, the Group actively engaged in environmental protection management, ensuring no environmental emergencies occurred. Our Daxin branch implemented projects such as the construction of new clear water drainage systems, production area clean and sewage diversion projects, rain and sewage collection and diversion projects, and the construction of steel structure pipeline trestle bridges at the Bukang tailings storage facility, yielding significant results. Through initiatives like intensive land use, harmless raw materials, clean production, waste recycling, and low-carbon energy, we proactively advanced the construction of a green and intelligent manufacturing system, achieving a comprehensive green transformation in our development approach.
 
Social Responsibility and Community Support
 
Throughout the year, the Group actively participated in social welfare activities, contributing to the development of surrounding communities. Through donations and “purchase instead of donation” initiatives, we addressed challenges faced by villagers in selling agricultural products, aiding rural revitalization. We introduced quality healthcare projects to ensure employee health, supported the development of areas surrounding the mines, and promoted harmonious relations between the mines and local communities. We assisted in upgrading drinking water pipelines in the Bai Suo village group of Renhui village, Xia Lei town, Daxin county. Our Gabon subsidiary assisted the local Ntchéré city government in maintaining office equipment, addressing equipment shortages, and constructed new school basketball courts, donating educational supplies to students. We conducted caring and assistance activities, focusing on employees’ well-being, and organized various festive events to enrich their cultural life.
 
Honors and Achievements
 
During the year, the Group ranked ninth in the 2024 Guangxi Top 100 Private Enterprises and seventh in the Guangxi Top 10 Private Enterprises for Employment. Since 2018, Guangxi has consecutively held the Guangxi Top 100 Private Enterprises release event for seven years. As a leading enterprise in Guangxi and the national manganese industry, the Group has frequently been listed among the top, with its excellent business performance and development momentum widely recognized by various sectors, making outstanding contributions to local economic development.
 
During the year, the Group, with its exceptional product quality and continuous service innovation, was honored as the “2024 Excellent Supplier of Electrolytic Manganese Metal in China”. This accolade not only affirms our long-standing commitment to high-quality production but also recognizes our leading position in the industry. Standing at a new historical starting point, the Group will uphold new cultures and concepts, continually explore new technologies and processes to enhance product competitiveness. Simultaneously, we will strengthen close cooperation with partners across the industrial chain to jointly address market challenges and promote China’s manganese industry towards higher quality and sustainable development.
 
Unified Vision and Collaborative Progress
 
On behalf of the Board, I extend sincere gratitude to all directors, management, and employees for their unity, hard work, and relentless efforts. I also express heartfelt thanks to our shareholders, customers, and business partners for their unwavering trust and support throughout the year.
 
In the coming year, we will continue to deeply study and implement the spirit of the National Private Enterprises Symposium, closely focusing on the twelve-character policy of “Enhancing Production Capacity, Reducing Costs, Promoting Efficiency, and Strengthening Management” to advance our Group’s work in 2025. We aim to achieve “Integration of Operations and Finance, Internal and External Synergy, and Enterprise-Government Collaboration” to enhance synergistic effects. We will vigorously promote the concept of a “Clean and Upright, Transparent South Manganese”, strengthen work style construction, unite employee’s minds, and form a strong working synergy. By improving management standards, we will guide employees to clarify work ideas, formulate clear plans, communicate and collaborate effectively, and execute tasks efficiently. With a strong sense of responsibility and mission, we will actively take on responsibilities and strive to write a new chapter for South Manganese!
 
Zhang Yi
 
Chairman
 
14th March 2025