Dear investors

Thank you for your concern, support and trust in Luoyang molybdenum industry.

2021, which has just passed, is an extraordinary year. The continuous epidemic of novel coronavirus pneumonia has brought about a strong uncertainty to the economic life of the world. No one or a company can be left alone in the face of this global disaster. In the face of severe challenges, we give full play to the world’s advanced logistics synergy and strong digital and intelligent production capacity, establish a comprehensive epidemic prevention and control system and material support system, ensure the health of employees and stable operation, and hand over a good answer.

Core financial data – in 2021, Luoyang molybdenum industry realized an operating revenue of 173.863 billion yuan, a year-on-year increase of 53.89%; the net profit attributable to the parent company was 5.106 billion yuan, a year-on-year increase of 119.26%; The net profit attributable to the parent company after non deduction reached 4.103 billion yuan, a year-on-year increase of 276.24%, and the total revenue and net profit reached a record high. At the same time, all core business units operated in an orderly manner under the epidemic, the safety accident rate decreased significantly, the output of main products reached a new record, ekson achieved the best performance in history, and the new development road of “mining + trade” was emerging.

More importantly, we have opened up space for future development — “5233″ management structure has been implemented, organizational upgrading and cultural reconstruction have been basically completed, and the functions of the group headquarters have been gradually improved; The group has achieved management process reengineering and a global integrated management system has been basically formed; Fully open the construction of information system and build a global digital management and control platform. All these have laid a solid foundation for future growth.

The epidemic has made people rethink the relationship between human beings and the world fundamentally, and also triggered our in-depth thinking on the essence of mining and the core competitiveness of the company. In the face of the new business environment and technical conditions, the traditional industry of mining is also being given new connotation. Based on the company’s development history, our understanding of the industry and the standards of world-class mining companies, we officially updated the company’s vision to “a respected, modern and world-class resource company”.

“Being respected” is our original intention and pursuit, which includes three meanings:

First, commercial success. This is the significance of Luoyang molybdenum industry as a commercial organization and the foundation for the company to settle down. Facing the revolutionary wave of new energy industry, the company should further improve production capacity, continuously expand resource reserves and maintain industry-leading profitability. Through sustained business success, we should enhance the influence of the industry, further consolidate our leading position in the global supply of battery metals and electric vehicle raw materials, and play an important role in the global energy transformation.

Second, promote people’s all-round development. We want to become an outstanding global enterprise, create a corporate culture that makes employees happy and proud, and let more people realize value in lomo and have a successful and wonderful career.

Third, the highest standard of sustainable development. We should implement the strictest safety, environmental protection and social standards, treat the precious resources given by nature, achieve sustainable development and create maximum value for all stakeholders.

“Modernization” is the way we do things. Modernization is mainly a remarkable feature compared with traditional mining enterprises. Breakthroughs should be made in three aspects:

One is to realize the modernization of mine production. Comply with the development trend of the new round of industrial revolution, vigorously promote the construction of digital and intelligent mines, and realize the modernization of mining, beneficiation and smelting, which not only improves the lean production level and resource utilization efficiency of mines, but also realizes the harmonious development of resource development, community and natural environment.

Second, we should stick to the financial market, manage the balance sheet, and make good use of financial instruments to avoid risks and obtain profits. Mining industry itself has the attribute of quasi finance. Making good use of financial instruments is not only the core competence of mining enterprises, but also the characteristics and advantages of Luoyang molybdenum industry. We should give full play to this advantage and make finance better serve the industry. We should pay close attention to the balance sheet, fully understand the cyclical characteristics of mining industry, always keep sober, and put liquidity management in a crucial position.

Third, we should make an in-depth exploration on the combination of mining and trade. We will continue to explore the advantages of the mining industry and the mining industry in the upper reaches of the world and promote the integration of the mining industry and the mining industry.

“World class” is our goal and the natural result of doing things right.

With the vision of a world-class company, Luoyang molybdenum industry is required to play an important role on the international mining stage and win commercial success in a free and open economic system with maturity and confidence. We should not only have world-class resources, industry-leading profitability and control the pricing power of important resources, but also have an international talent team, management structure, operation efficiency, corporate culture and corporate brand. We should be in a global leading position in new energy metals such as copper, cobalt and nickel and characteristic metals such as molybdenum, tungsten and niobium.

We are deeply aware that to realize the great vision, we need to be down-to-earth and step by step. Therefore, we have formulated a “three-step” development path: the first step is to “lay the foundation” to reduce costs and increase efficiency, build systems, improve mechanisms, build nests and attract Phoenix, attract mining elites and make reserves through organizational upgrading and the establishment of global control model; The second step is to “go up to the next level” to double the production capacity. With the increase of production capacity, the staff team will be tempered in the construction of world-class projects. With modern governance methods, the subsidiary companies will be more effectively controlled, with clear responsibilities and rights, clear boundaries, and the level of global governance will rise to the next level in an all-round way. The third step is “great leap forward” to create a world-class enterprise. The enterprise scale and cash flow level have reached a new height, and the talent team and project reserve have reached new requirements. We should strive for greater development and realize the vision and objectives of the company around key regions and key varieties and strategic ideas. At present, we are at a critical stage from the first step of “laying the foundation” to the second step of “stepping up”. 2022 is positioned as the construction year. It is necessary to speed up the construction of two world-class mines in the Democratic Republic of the Congo, maximize the utilization value of resources and lay a solid foundation for the company to achieve new leaps.

We are deeply aware that culture is the most basic productive force and a flexible value network linking individuals and organizations. Excellent corporate culture is the catalyst for excellent talents to accelerate chemical reactions. After more than a year of brewing and discussion, the new corporate culture system of Luoyang molybdenum industry has initially taken shape. The cultural system is the thinking result of the company based on the growth history of the enterprise, actively responding to environmental changes and actively meeting future challenges; It is an important guideline for the global units of the group to carry out operation and management, improve rules and regulations, formulate code of conduct, fulfill social responsibilities and promote brand image; It is a programmatic document that all employees must fully understand, identify with and abide by in thought and behavior; It is the Spiritual Banner of unifying thinking, uniting consensus, stimulating fighting spirit and boosting morale in the whole group. We believe that the greatest common divisor of the common values of Luomo people will lead us to a further future and build our strongest moat.

The world is undergoing profound changes. In the torrent of the global industrial revolution and energy revolution, we will grow into a respected, modern and world-class resource company. At present, the overall control of COVID-19 is beginning to dawning. The world economy has accumulated huge recovery potential. We firmly believe that as long as we stick to the original intention, follow the law, continue to evolve and continue to create value for all stakeholders, we can deal with all crises and challenges.

The best way to predict the future is to create the future! In the face of this great era, under the guidance of new vision and new goals, we will gather into the foundation of high-quality development with the ambition of being the first and the courage to face difficulties, live up to the hot land under our feet and the great trust of shareholders, and hand in wonderful answers!