Lygend resources had the largest nickel ore trading volume in China in each of 2019, 2020 and the nine months ended 2021. It accounted for 27.3% of market share in 2020 in China in terms of nickel ore trading volume. For nickel product trading, it ranked fourth globally and first in China in terms of nickel ore trading volume in 2020. The company's supply channels of nickel resources include the Philippines, Indonesia, New Caledonia, Turkey and other countries. It has established good and close cooperative relations with many international well-known nickel ore suppliers, which can provide long-term and stable high-quality supply and reliable logistics distribution. It has also established stable and win-win cooperative relations with many domestic and foreign steel enterprises (POSCO, Tsingshan, Eastern Special Steel, Baosteel, etc.).

Nickel production. Suqian plant in China has three RKEF (rotary kiln + submerged arc furnace) production lines, with an annual capacity of 18,000 metal tons of ferronickel; in 2018, Lygend Resources and its Indonesian partner jointly invested in the construction of a nickel hydrometallurgy plant on the Obi Island, Indonesia. It is the first project in Indonesia to produce nickel cobalt compounds from laterite ore by high-pressure acid leaching process, and also to produce raw materials for cathode of new energy vehicle batteries, It is also the first HPAL nickel cobalt project completed and put into operation in Indonesia. By the end of September 2021, Its HPAL project is the largest to date overseas nickel hydrometallurgy project utilizing the HPAL process constructed by Chinese companies that has been successfully put into operation.

In the future, Lygend will continue to cultivate in the upstream and downstream of the nickel industry chain, and plans to complete the construction, and achieve full production capacity, of the remaining production lines of the HPAL project (including the corresponding nickel sulfate and cobalt sulfate production lines) and the productions for the RKEF projects in the next five years. Once all production lines are put into operation, the HPAL project is expected to have an aggregate designed production capacity of 120,000 metal tons of nickel-cobalt compounds (including 14,250 metal tons of cobalt) per annum, and the RKEF project is expected to have an aggregate designed production capacity of 280,000 metal tons of ferronickel per annum. We believe we will become an industry-leading nickel products producer when all the production lines are put into operation.