Securities code: 002340

Securities abbreviation: GEM

Announcement number: 2021-070

About the directional recycling of 10,000 tons of nickel
products signed with Yiwei Lithium Energy
Announcement of the Memorandum of Cooperation
The company and all members of the board of directors guaranteethat the information disclosed is true, accurate and complete, and that
there are no false records, misleading statements or major omissions.
Special Note:
The memorandum signed this time belongs to the framework, intention andpreliminary agreement of the willingness and basic principles of further cooperationbetween the two parties. It is affected by factors such as the specific implementation
progress, and there are still uncertainties. Investors are advised to make decisions withcaution and pay attention to investment risks.
I. Overview
With the rapid development of the global new energy industry, focusing on themarket driving force of "carbon peaking and carbon neutrality" and practicing theconcept of "ecological priority and green development", we will continue to create"clean, efficient, green, circular, and low-carbon" Leading corporate image, andjointly enhance the industry of GEM Co., Ltd. (hereinafter referred to as "Company","GEM" or "Party B") and Huizhou Yiwei Lithium Energy Co., Ltd. (hereinafterreferred to as "Evil Lithium Energy" or "Party A") Influence, based on the value reuseof nickel metal after the full life cycle of power battery recycling, both parties reached
an agreement and signed the "10,000 tons of recycled nickel products directional
recycling cooperation memorandum" on August 9, 2021. According to thememorandum, Party A will supply the scrapped nickel-containing power batteries andbattery waste to Party B, and Party B will supply Party A with recycled nickel
products. Party B promises to supply Party A with more than 10,000 tons of recycled

nickel per year within ten years from 2024. Products (including nickel sulfate, ternary
precursors and ternary materials and other nickel products), build a power battery fulllife cycle value chain of "power battery recycling - battery raw material recycling battery material recycling - power battery recycling" and global green nickel products
Supply chain, promote low-carbon emission standards of power batteries, and realize
the coordinated development of economic and social benefits.
According to the "Articles of Association" and other relevant regulations, thememorandum signed by the company this time does not need to be submitted to theboard of directors and the general meeting of shareholders for consideration andapproval. The signing of the memorandum does not constitute a related party
transaction, nor does it constitute a major asset reorganization as stipulated in the"Administrative Measures for Major Asset Restructuring of Listed Companies",
which does not require approval from relevant departments. The company will
perform its information disclosure obligations in a timely manner based on
subsequent actual progress.
Ⅱ. Introduction of partners
Company Name: Huizhou Yiwei Lithium Energy Co., Ltd.
Legal representative: Liu Jincheng
Registered capital: RMB 1,888,460,679
Date of establishment: December 24, 2001
Registered address: No. 38, Huifeng 7th Road, Zhongkai High-tech Zone,
Huizhou City
Business scope: research and development, production, sales: lithium primary
batteries, lithium secondary batteries, lithium polymer batteries, lithium ion batteries,
lithium batteries (packs), lithium ion battery packs, nickel-metal hydride batteries,
nickel-cadmium batteries, alkaline batteries, Zinc-manganese batteries, power battery
systems and battery management systems, lithium battery energy storage systems,
battery materials, nano-new materials, semi-finished products of water meters, gas
meters, and electricity meters and their accessories manufacturing, research anddevelopment of power distribution switch control equipment, electronic components
and electromechanical Component equipment manufacturing, electronic components
and electromechanical component equipment sales, technology research anddevelopment, development and transfer, import and export of goods, house leasing,processing services, equipment leasing, property management, contract energy
management, lithium battery-related technical consulting services, battery-related
Maintenance service. (Projects subject to approval according to law can only carry out
business activities after approval by relevant departments)
Yiwei Lithium Energy has no associated relationship with the company and its
controlling shareholders, actual controllers, directors, supervisors and seniormanagers.
Yiwei Lithium Energy has a good operating and financial status, and has a good
reputation and contract performance capability. After inquiry, Yiwei Lithium Energy
is not a dishonest person subject to execution
Ⅲ.The core content of the memorandum
1. Form of cooperation
As long-term business partners, the two parties continue to expand in-depth
cooperation in the field of battery recycling. Party B shall handle the recycledmaterials in strict accordance with national laws and regulations and relevant local
department regulations to ensure the environmental compliance of the entire recycling
process. Party B promises to give priority to the use of its recycled nickel products(including nickel sulfate, ternary precursors and ternary materials and other nickel
products) to ensure the use of Party A.
Party A supplies scrap nickel-containing power batteries and battery waste to
Party B, and actively demonstrates and guides the use of Party B's nickel products(including nickel sulfate, ternary precursors and ternary materials, etc.) in Party A's
global industrial chain , and jointly build a global green supply chain for nickel
products.
2. Quantity of supply
From 2024, Party B promises to supply Party A with more than 10,000 tons ofrecycled nickel products per year (including nickel sulfate, ternary precursors andternary materials and other nickel products), to ensure that Party A stock up andsupply evenly on a monthly basis .
Party A promises to supply all or part of scrap nickel-containing power batteries
and battery waste (that is, downstream customers have special requirements or othercircumstances) to Party B, and actively demonstrates and guides Party B's nickel
products (including nickel sulfate, ternary precursors and For the use of nickel

products such as ternary materials) in Party A's global industrial chain, Party B should
actively cooperate with Party A's global supply chain extension demonstration andresearch.
3. Other agreed matters(1) According to the needs of future development, Party A and Party B will
actively study the establishment of power battery recycling and nickel resource
recycling factories on a global scale to ensure the green supply demand of Party A's
global industrial chain.
(2) This memorandum will take effect after both parties seal. The cooperation
period extends for 10 years from the start of product supply, and the quantity can beincreased and the cooperation period can be extended as needed.
Ⅳ.The impact on the company
Yiwei Lithium Energy focuses on high-end lithium battery technology andproducts. It is a world-renowned lithium battery manufacturer and supplier. It has
many domestic and foreign high-quality customers such as Daimler, BMW, Hyundai
Kia, Jaguar Land Rover, etc., showing bright development prospects. GEM is theworld's core enterprise for nickel resource recovery, power battery recycling andternary precursor material manufacturing. The company's core products, nickel
chemical raw materials and high-nickel ternary precursors, represent the world'shigh-quality products and are the world's advanced green and low-carbon enterprises.
Under the general trend of the rapid development of new energy power ternary
batteries in the direction of high nickel and low cost, the two parties will carry out thedirectional recycling of retired nickel power batteries and scrap nickel resources,
which will become an effective way to ensure the strategic safety of nickel rawmaterials for both parties.
GEM is an advanced enterprise with three elements of "recycling system,
cascade utilization and resource utilization" in the global power battery recycling
industry chain. It can implement nationwide effective recycling, cascade utilizationand complete resource utilization for power batteries, and has built a The world's
advanced new energy full life cycle value chain model of "power battery recycling cascade utilization - raw material remanufacturing - material remanufacturing - power
battery pack remanufacturing" has built the world's most advanced waste batterycomprehensive utilization factory, which can recycle waste power batteries " Eat dry

and squeeze clean” to realize the recycling of nickel and cobalt resources. Among the27 companies issued by the Ministry of Industry and Information Technology thatmeet the "Industry Standard Conditions for Comprehensive Utilization of Waste
Power Batteries for New Energy Vehicles", GEM occupies three companies, ranking
first in the country.
The signing of the memorandum will help both parties to jointly build a power
battery full life cycle value chain and a global green supply chain for nickel products,
which is "power battery recycling-battery raw material recycling-battery material
recycling-power battery recycling". The cooperation between technology and market
chain realizes the directional recycling and reuse of nickel resources, promotes thelow-carbon emission standard of power batteries, boosts the national carbon peaking
and carbon neutralization strategy, realizes the coordinated development of economic
and social benefits, and continuously consolidates the company's global presence The
core position of the new energy industry chain will enhance the company's global
industry influence and further enhance the company's core competitiveness andsustainable profitability.
The signing of this memorandum has no impact on the independence of thecompany's business and operations, and will not have a significant impact on thecompany's financial status and operating results for the year. The smooth
implementation of this agreement is expected to have a positive impact on thecompany's future business development.
Ⅴ. Risk WarningThis memorandum is a framework and intentional agreement on cooperation
willingness and basic principles. It is affected by factors such as the specificimplementation progress and project situation, and there are uncertainties. If a formalcooperation agreement is signed between the two parties in the future, the company
will perform the review in strict accordance with the requirements of laws andregulations. procedures, and fulfill the obligation of information disclosure in a timely
manner. Investors are advised to make decisions with caution and pay attention toinvestment risks.
Ⅵ. Other relevant instructions
1. The framework agreements disclosed by the company in the last three years
are as follows:

The "Memorandum of Understanding on NCA Precursor, Sulfate and Metal
Powder Project Cooperation" signed by the company and South Korea's ECOPRO;
Memorandum of Understanding"; the "Memorandum of Understanding (MOU) for
the Supply of High Nickel Precursor Materials for Power Batteries NCM8 Series and9 Series" signed by the company and South Korea's ECOPRO BM; The
Memorandum of Understanding (MOU) related to the Investment Agreement on High
Nickel Precursor Materials for Batteries; the Memorandum of Understanding (MOU)
for the Supply of High Nickel Precursors (NCA&NCM) for ECOPRO&GEM PowerBatteries (NCA&NCM) 2021-2023 signed between the company and South Korea's
ECOPRO BM; the company and Ningde The "Investment Framework Agreement on
the Construction of Power Battery Materials and Circular Economy Industrial Parkand other projects" signed by the Municipal People's Government, Fu'an Municipal
People's Government, and Qingtuo Group; the company's wholly-owned subsidiary
Jingmen Greenmei New Materials Co., Ltd. and Yongqing Technology Co., Ltd. The"Framework Agreement on Cooperative Construction of Ternary Power Battery
Materials Project" signed by Co., Ltd.;The company and its wholly-owned subsidiary
Jingmen GEM New Materials Co., Ltd. and Hunan Bangpu Recycling TechnologyCo., Ltd., Guangdong Bangpu Recycling Technology Co., Ltd., and Foshan Sanshui
Bangpu Resource Recycling Co., Ltd. signed the "Ternary Precursor StrategicCooperation Framework" Agreement"; the "Strategic Cooperation Framework
Agreement" signed by the company and Hubei Changjiang Industrial Investment
Group Co., Ltd.; the company's subsidiary Jingmen GEM New Materials Co., Ltd.
and Ningbo Bangpu Times New Energy Co., Ltd., Hong Kong Bangpu Recycling
Technology Co., Ltd., The "Memorandum of PT. QMB NEW ENERGY
MATERIALS" signed by Yongqing Technology Co., Ltd., Xinzhan InternationalHoldings Co., Ltd., and PT. Indonesia Morowali Industrial Park, the above
agreements are all being implemented.
2. On June 7, 2021, the company disclosed the "Pre-Disclosure on the Controlling
Shareholders, Persons Acting in Concert, Actual Controllers and Some Directors,
Supervisors and Senior Management" on the website of cninfo.com.cn Announcement(Announcement No.: 2021-057), the controlling shareholder Shenzhen Huifengyuan
Investment Co., Ltd. and the concerted action person Fengcheng Xinyuanxing New
Materials Co., Ltd., the actual controllers Xu Kaihua, and Wang Min plan to conduct
centralized bidding or block transactions. The reduction does not exceed 1.4763% ofthe company's total shares held by the company. Supervisors of the company Mr.
Zhou Bo, Ms. Wang Jian, senior executives Mr. Song Wanxiang, Mr. Ouyang
Mingzhi, Mr. Lu Xijin, Mr. Zhang Aiqing, Mu Menggang Mr. intends to reduce hisholdings of no more than 25% of the company's total shares through centralized
bidding. The reduction plan of the above-mentioned personnel shall be carried outwithin 6 months after 15 trading days from the disclosure date of the pre-disclosure
announcement. As of the date of this announcement, the company has not received
notices from other directors, supervisors and senior executives who plan to reduce
their shareholdings in the company within the next three months.
3. On July 14, 2021, the company disclosed the "Announcement on theCompletion of the Implementation of the Share Reduction Plan for Some Supervisorsand Senior Executives" (Announcement No.: 2021-064) on the website ofwww.cninfo.com.cn ), as of July 13, 2021, the company's supervisors, Mr. Zhou Bo,
Ms. Wang Jian, and senior management personnel, Mr. Song Wanxiang, Mr. Ouyang
Mingzhi, Mr. Lu Xijin, Mr. Zhang Aiqing, and Mr. Mu Menggang's shareholding
reduction plans have been disclosed in advance. Implementation is complete.
4. In the next three months, the company will not have any controllingshareholders, shareholders holding more than 5% of the shares, and the restricted
shares held by directors, supervisors, and senior executives will be released fromrestricted sales.
Ⅶ. Documents available for inspection
The "Memorandum of Cooperation on Directed Circulation of 10,000 Tons ofRecycled Nickel Products" signed by both parties.
Special announcement

Board of Directors of GEM Co., Ltd.
August 9, 2021