| | Guangxi Hua Yin Aluminum Co., Ltd.       
| | -----------------------------------------
| |                                          
| | Auditors’ Report and Financial Statements
| |                                          
| | For the Year Ended December 31, 2017     








INDEX TO
FINANCIAL STATEMENTS



|                                                            | Page
|----------------------------------------------------------- | ----
|                                                            |     
|Contents                                                    |     
|                                                            |     
|Report
    of Independent Registered Public Accounting Firm | 1   
|                                                            |     
|Statements
    of comprehensive income                      | 2   
|                                                            |     
|Statements
    of financial position                        | 3   
|                                                            |     
|Statements
    of changes in equity                         | 4   
|                                                            |     
|Statements
    of cash flows                                | 5   
|                                                            |     
|Notes
    to the financial statements                       | 6-26












Report of
Independent Registered Public Accounting Firm



Shareholders and Board of Directors

Guangxi Hua Yin Aluminum Co., Ltd.



Opinion on the Consolidated Financial
Statements



We have audited
the accompanying consolidated financial statements of Guangxi Hua Yin Aluminum Co., Ltd. and its subsidiaries (the "Company”),
which comprise the consolidated statement of financial position as of December 31, 2017, and the related consolidated statements
of comprehensive income, changes in shareholders’ quity, and cash flows for the year then ended, and the related notes to
the consolidated financial statements. In our opinion, the consolidated financial statements present fairly, in all material respects,
the financial position of the Company at December 31, 2017, and the results of its operations and its cash flows for the year
then ended, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards
Board.



Basis for Opinion



These consolidated
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the
Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect
to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.



We conducted
our audits in accordance with the standards of the PCAOB and International Standard on Auditing. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial
reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial
reporting. Accordingly, we express no such opinion.



Our audits
included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.



Report on comparative financial
statements



We have not
audited the accompanying consolidated statements of financial position of Guangxi Hua Yin Aluminum Co., Ltd. and its subsidiaries
as of January 1, 2015, December 31, 2015, December 31, 2016, and the related consolidated statements of comprehensive income,
changes in shareholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial
statements and, accordingly, express no opinion on them.



/s/ Shu Lun Pan Certified Public
Accountants LLP



We have served as the Company's
auditor since 2017



Beijing, Peoples Republic of China

May 28, 2018












GUANGXI HUA
YIN ALUMINUM CO., LTD

CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME

(All amounts
expressed in thousands of Renminbi)



|                                                        |  |  |       |  |  |  | 2015        |   |  |  | 2016        |   |  |  | 2017       |  
|------------------------------------------------------- |  |  | ----- |  |  |  | ----------- | - |  |  | ----------- | - |  |  | ---------- | -
|                                                        |  |  | Notes |  |  |  | (Unaudited) |   |  |  | (Unaudited) |   |  |  |            |  
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Revenue                                                 |  |  | 4     |  |  |  | 4,234,157   |   |  |  | 4,008,925   |   |  |  | 5,547,895  |  
|Cost of sales                                           |  |  |       |  |  |  | (3,527,339  | ) |  |  | (3,477,140  | ) |  |  | (3,703,779 | )
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Gross
    profit                                        |  |  |       |  |  |  | 706,818     |   |  |  | 531,785     |   |  |  | 1,844,116  |  
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Other revenue and net losses                            |  |  | 5     |  |  |  | 24,698      |   |  |  | 12,558      |   |  |  | 32,211     |  
|Administrative expenses                                 |  |  |       |  |  |  | (193,322    | ) |  |  | (96,191     | ) |  |  | (123,423   | )
|Selling and distribution expenses                       |  |  |       |  |  |  | (120,882    | ) |  |  | (104,717    | ) |  |  | (112,748   | )
|Finance costs                                           |  |  | 6     |  |  |  | (227,592    | ) |  |  | (169,745    | ) |  |  | (132,273   | )
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|PROFIT
    BEFORE TAX                                   |  |  |       |  |  |  | 189,720     |   |  |  | 173,690     |   |  |  | 1,507,883  |  
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Income tax expense                                      |  |  | 7     |  |  |  | 47,914      |   |  |  | 35,312      |   |  |  | 214,264    |  
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|PROFIT
    FOR THE YEAR                                 |  |  |       |  |  |  | 141,806     |   |  |  | 138,378     |   |  |  | 1,293,619  |  
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|OTHER COMPREHENSIVE
    INCOME                          |  |  |       |  |  |  | —           |   |  |  | —           |   |  |  | —          |  
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|TOTAL
    COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX |  |  |       |  |  |  | 141,806     |   |  |  | 138,378     |   |  |  | 1,293,619  |  
|                                                        |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  



The accompanying
notes are an integral part of these financial statements.








GUANGXI HUA
YIN ALUMINUM CO., LTD

COMSOLIDATED
STATEMENTS OF FINANCIAL POSITION

(All
amounts expressed in thousands of Renminbi)



|                                                                               |  |  |       |  |  |  | January
                                         1
                                                                                2015 |  |  |  | December
                                         31
                                                                                2015 |  |  |  | December
                                         31
                                                                                2016 |  |  |  | December
                                         31
                                                                                2017 | 
|------------------------------------------------------------------------------ |  |  | ----- |  |  |  | --------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | ----------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | ----------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | ----------------------------------------------------------------------------------------------------------------------------------------- | 
|                                                                               |  |  | Notes |  |  |  | (Unaudited)                                                                                                                             |  |  |  | (Unaudited)                                                                                                                               |  |  |  | (Unaudited)                                                                                                                               |  |  |  |                                                                                                                                           | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Assets                                                                         |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Non-current assets                                                             |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Property, plant and equipment                                                  |  |  | 8     |  |  |  | 6,098,772                                                                                                                               |  |  |  | 5,813,216                                                                                                                                 |  |  |  | 5,678,419                                                                                                                                 |  |  |  | 5,388,339                                                                                                                                 | 
|Other intangible assets                                                        |  |  | 9     |  |  |  | 401,907                                                                                                                                 |  |  |  | 392,883                                                                                                                                   |  |  |  | 374,201                                                                                                                                   |  |  |  | 353,458                                                                                                                                   | 
|Deferred tax assets                                                            |  |  | 10    |  |  |  | 9,239                                                                                                                                   |  |  |  | 19,081                                                                                                                                    |  |  |  | 50,779                                                                                                                                    |  |  |  | 29,710                                                                                                                                    | 
|Other non-current assets                                                       |  |  |       |  |  |  | 111,681                                                                                                                                 |  |  |  | 131,162                                                                                                                                   |  |  |  | 150,429                                                                                                                                   |  |  |  | 150,429                                                                                                                                   | 
|                                                                               |  |  |       |  |  |  | 6,621,599                                                                                                                               |  |  |  | 6,356,342                                                                                                                                 |  |  |  | 6,253,828                                                                                                                                 |  |  |  | 5,921,936                                                                                                                                 | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Current assets                                                                 |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Inventories                                                                    |  |  | 11    |  |  |  | 896,416                                                                                                                                 |  |  |  | 1,014,329                                                                                                                                 |  |  |  | 865,658                                                                                                                                   |  |  |  | 911,822                                                                                                                                   | 
|Trade and bills receivables                                                    |  |  | 12    |  |  |  | 78,872                                                                                                                                  |  |  |  | 231,897                                                                                                                                   |  |  |  | 165,190                                                                                                                                   |  |  |  | 68,428                                                                                                                                    | 
|Prepayments, deposits and other receivables                                    |  |  | 13    |  |  |  | 462,855                                                                                                                                 |  |  |  | 148,270                                                                                                                                   |  |  |  | 417,374                                                                                                                                   |  |  |  | 76,181                                                                                                                                    | 
|Cash and cash equivalents                                                      |  |  | 14    |  |  |  | 344,930                                                                                                                                 |  |  |  | 206,090                                                                                                                                   |  |  |  | 444,104                                                                                                                                   |  |  |  | 259,280                                                                                                                                   | 
|Restricted cash                                                                |  |  | 14    |  |  |  | 105,327                                                                                                                                 |  |  |  | 30,000                                                                                                                                    |  |  |  | 71,300                                                                                                                                    |  |  |  |                                                                                                                                           | 
|                                                                               |  |  |       |  |  |  | 1,888,400                                                                                                                               |  |  |  | 1,630,586                                                                                                                                 |  |  |  | 1,963,626                                                                                                                                 |  |  |  | 1,315,711                                                                                                                                 | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Total assets                                                                   |  |  |       |  |  |  | 8,509,999                                                                                                                               |  |  |  | 7,986,928                                                                                                                                 |  |  |  | 8,217,454                                                                                                                                 |  |  |  | 7,237,647                                                                                                                                 | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Equity and liabilities                                                         |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Equity                                                                         |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Paid-in capital                                                                |  |  | 15    |  |  |  | 2,441,987                                                                                                                               |  |  |  | 2,441,987                                                                                                                                 |  |  |  | 2,441,987                                                                                                                                 |  |  |  | 2,441,987                                                                                                                                 | 
|Reserves                                                                       |  |  |       |  |  |  | 726,641                                                                                                                                 |  |  |  | 898,615                                                                                                                                   |  |  |  | 1,066,139                                                                                                                                 |  |  |  | 2,210,295                                                                                                                                 | 
|Total equity                                                                   |  |  |       |  |  |  | 3,168,628                                                                                                                               |  |  |  | 3,340,602                                                                                                                                 |  |  |  | 3,508,126                                                                                                                                 |  |  |  | 4,652,282                                                                                                                                 | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Non-current liabilities                                                        |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Long-term interest-bearing
    loans and other borrowings                      |  |  | 16    |  |  |  | 2,851,650                                                                                                                               |  |  |  | —                                                                                                                                         |  |  |  | 1,629,700                                                                                                                                 |  |  |  | 1,259,000                                                                                                                                 | 
|Deferred government grants                                                     |  |  | 17    |  |  |  | —                                                                                                                                       |  |  |  | 27,416                                                                                                                                    |  |  |  | 36,913                                                                                                                                    |  |  |  | 23,950                                                                                                                                    | 
|Others                                                                         |  |  |       |  |  |  | —                                                                                                                                       |  |  |  | —                                                                                                                                         |  |  |  | 200,000                                                                                                                                   |  |  |  | 100,916                                                                                                                                   | 
|                                                                               |  |  |       |  |  |  | 2,851,650                                                                                                                               |  |  |  | 27,416                                                                                                                                    |  |  |  | 1,866,613                                                                                                                                 |  |  |  | 1,383,866                                                                                                                                 | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Current liabilities                                                            |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Trade payables                                                                 |  |  | 18    |  |  |  | 568,868                                                                                                                                 |  |  |  | 659,072                                                                                                                                   |  |  |  | 923,275                                                                                                                                   |  |  |  | 428,161                                                                                                                                   | 
|Other payables and accruals                                                    |  |  | 19    |  |  |  | 176,253                                                                                                                                 |  |  |  | 587,488                                                                                                                                   |  |  |  | 383,940                                                                                                                                   |  |  |  | 463,338                                                                                                                                   | 
|Interest-bearing loans and other borrowings                                    |  |  | 16    |  |  |  | 1,444,600                                                                                                                               |  |  |  | 1,128,000                                                                                                                                 |  |  |  | 735,500                                                                                                                                   |  |  |  | 310,000                                                                                                                                   | 
|Long-term interest
    bearing loans and other borrowings -due within one year |  |  | 16    |  |  |  | —                                                                                                                                       |  |  |  | 1,944,350                                                                                                                                 |  |  |  | —                                                                                                                                         |  |  |  | —                                                                                                                                         | 
|Others                                                                         |  |  |       |  |  |  | 300,000                                                                                                                                 |  |  |  | 300,000                                                                                                                                   |  |  |  | 800,000                                                                                                                                   |  |  |  | —                                                                                                                                         | 
|                                                                               |  |  |       |  |  |  | 2,489,721                                                                                                                               |  |  |  | 4,618,910                                                                                                                                 |  |  |  | 2,842,715                                                                                                                                 |  |  |  | 1,201,499                                                                                                                                 | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Total liabilities                                                              |  |  |       |  |  |  | 5,341,371                                                                                                                               |  |  |  | 4,646,326                                                                                                                                 |  |  |  | 4,709,328                                                                                                                                 |  |  |  | 2,585,365                                                                                                                                 | 
|                                                                               |  |  |       |  |  |  |                                                                                                                                         |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           |  |  |  |                                                                                                                                           | 
|Total equity and liabilities                                                   |  |  |       |  |  |  | 8,509,999                                                                                                                               |  |  |  | 7,986,928                                                                                                                                 |  |  |  | 8,217,454                                                                                                                                 |  |  |  | 7,237,647                                                                                                                                 | 



The accompanying notes are an integral
part of these financial statements.



The financial statements are signed
by:



|Director_______________________________________ |  | Director_______________________________________
|----------------------------------------------- |  | -----------------------------------------------
|                                                |  |                                                














GUANGXI HUA
YIN ALUMINUM CO., LTD

CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY

(All
amounts expressed in thousands of Renminbi)



|                                                          |  |  | Paid-in
                                                                          capital |  |  |  | Special
                                                                                Reserves |   |  |  | Statutory
                                                                                reserves |  |  |  | Retaind
                                                                                earnings |   |  |  | Total     |  
|--------------------------------------------------------- |  |  | ----------------------------------------------------------------------------------------- |  |  |  | ------------------------------------------------------------------------------------------------ | - |  |  | -------------------------------------------------------------------------------------------------- |  |  |  | ------------------------------------------------------------------------------------------------ | - |  |  | --------- | -
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|At
    January 1, 2015 (unaudited)                        |  |  | 2,441,987                                                                                 |  |  |  | -                                                                                                |   |  |  | 103,175                                                                                            |  |  |  | 623,466                                                                                          |   |  |  | 3,168,628 |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|Profit for the year                                       |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | 141,806                                                                                          |   |  |  | 141,806   |  
|Other comprehensive income                                |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | —                                                                                                |   |  |  | —         |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|Total comprehensive income                                |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | 141,806                                                                                          |   |  |  | 141,806   |  
|Special reserve fund                                      |  |  | —                                                                                         |  |  |  | 30,168                                                                                           |   |  |  | —                                                                                                  |  |  |  |                                                                                                  |   |  |  | 30,168    |  
|Appropriation of statutory reserve fund                   |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | 14,181                                                                                             |  |  |  | (14,181                                                                                          | ) |  |  | —         |  
|Cash dividends                                            |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | —                                                                                                |   |  |  | —         |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|At
    December 31, 2015 and January 1, 2016  (unaudited) |  |  | 2,441,987                                                                                 |  |  |  | 30,168                                                                                           |   |  |  | 117,356                                                                                            |  |  |  | 751,091                                                                                          |   |  |  | 3,340,602 |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|Profit for the year                                       |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | 138,378                                                                                          |   |  |  | 138,378   |  
|Other comprehensive income                                |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | —                                                                                                |   |  |  | —         |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|Total comprehensive income                                |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | 138,378                                                                                          |   |  |  | 138,378   |  
|Special reserve fund                                      |  |  | —                                                                                         |  |  |  | 29,146                                                                                           |   |  |  | —                                                                                                  |  |  |  | —                                                                                                |   |  |  | 29,146    |  
|Appropriation of statutory reserve fund                   |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | 13,837                                                                                             |  |  |  | (13,837                                                                                          | ) |  |  | —         |  
|Cash dividends                                            |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | —                                                                                                |   |  |  | —         |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|At
    December 31, 2016 and January 1, 2017 (unaudited)  |  |  | 2,441,987                                                                                 |  |  |  | 59,314                                                                                           |   |  |  | 131,193                                                                                            |  |  |  | 875,632                                                                                          |   |  |  | 3,508,126 |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|Profit for the year                                       |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | 1,293,619                                                                                        |   |  |  | 1,293,619 |  
|Other comprehensive income                                |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | —                                                                                                |   |  |  | —         |  
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|Total comprehensive income                                |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  |                                                                                                    |  |  |  | 1,293,619                                                                                        |   |  |  | 1,293,619 |  
|Special reserve fund                                      |  |  | —                                                                                         |  |  |  | (27,463                                                                                          | ) |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  | (27,463   | )
|Appropriation of statutory reserve fund                   |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | 129,361                                                                                            |  |  |  | (129,361                                                                                         | ) |  |  | —         |  
|Cash dividends                                            |  |  | —                                                                                         |  |  |  | —                                                                                                |   |  |  | —                                                                                                  |  |  |  | (122,000                                                                                         | ) |  |  | (122,000  | )
|                                                          |  |  |                                                                                           |  |  |  |                                                                                                  |   |  |  |                                                                                                    |  |  |  |                                                                                                  |   |  |  |           |  
|At December 31,
    2017                                  |  |  | 2,441,987                                                                                 |  |  |  | 31,851                                                                                           |   |  |  | 260,554                                                                                            |  |  |  | 1,917,890                                                                                        |   |  |  | 4,652,282 |  



The accompanying notes are
an integral part of these financial statements.












GUANGXI HUA
YIN ALUMINUM CO., LTD

STATEMENTS
OF CASH FLOWS

(All
amounts expressed in thousands of Renminbi)



|                                                                           |  |  |       |  |  |  | 2015        |   |  |  | 2016        |   |  |  | 2017       |  
|-------------------------------------------------------------------------- |  |  | ----- |  |  |  | ----------- | - |  |  | ----------- | - |  |  | ---------- | -
|                                                                           |  |  | Notes |  |  |  | (Unaudited) |   |  |  | (Unaudited) |   |  |  |            |  
|                                                                           |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Operating
    activities                                                   |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Profit
    before tax                                                      |  |  |       |  |  |  | 189,720     |   |  |  | 173,690     |   |  |  | 1,507,883  |  
|Non-cash adjustments
    to reconcile profit before tax to net cash flows: |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Finance
    costs                                                          |  |  | 6     |  |  |  | 227,592     |   |  |  | 169,745     |   |  |  | 132,273    |  
|Depreciation of property
    and equipment                                 |  |  | 8     |  |  |  | 505,818     |   |  |  | 490,827     |   |  |  | 505,475    |  
|Loss on disposal
    of property and equipment                             |  |  |       |  |  |  | —           |   |  |  | —           |   |  |  | —          |  
|Amortization of intangible
    assets                                      |  |  | 9     |  |  |  | 18,618      |   |  |  | 18,683      |   |  |  | 18,615     |  
|Impairment losses                                                          |  |  |       |  |  |  | 1,171       |   |  |  | 5,627       |   |  |  | 10,595     |  
|Investment income                                                          |  |  |       |  |  |  | —           |   |  |  | —           |   |  |  | —          |  
|Working capital
    adjustments:                                           |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Increase in trade
    and other receivables                                |  |  |       |  |  |  | (180,219    | ) |  |  | (214,137    | ) |  |  | (269,664   | )
|Decrease/(increase)
    in inventories                                     |  |  |       |  |  |  | (117,913    | ) |  |  | 148,670     |   |  |  | (46,164    | )
|Increase in trade
    and other payables                                   |  |  |       |  |  |  | 216,950     |   |  |  | 534,030     |   |  |  | 70,163     |  
|                                                                           |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Income tax paid                                                            |  |  |       |  |  |  | 51,582      |   |  |  | 26,667      |   |  |  | 199,309    |  
|Net
    cash flows from operating activities                               |  |  |       |  |  |  | 913,319     |   |  |  | 1,353,802   |   |  |  | 2,128,485  |  
|                                                                           |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Investing
    activities                                                   |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Purchases of property
    and equipment                                    |  |  |       |  |  |  | (199,706    | ) |  |  | (280,637    | ) |  |  | (217,273   | )
|Proceeds from other
    investing activities                               |  |  |       |  |  |  | 980,961     |   |  |  | 735,521     |   |  |  | —          |  
|Cash paid relating
    to other investing activities                       |  |  |       |  |  |  | (708,000    | ) |  |  | (1,012,026  | ) |  |  | —          |  
|Net
    cash flows used in investing activities                            |  |  |       |  |  |  | 73,255      |   |  |  | (557,138    | ) |  |  | (217,273   | )
|                                                                           |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Financing
    activities                                                   |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|New bank loans and
    other borrowings                                    |  |  |       |  |  |  | 1,928,000   |   |  |  | 1,645,500   |   |  |  | 460,000    |  
|Repayment of bank
    loans and other borrowings                           |  |  |       |  |  |  | (2,851,900  | ) |  |  | (2,024,650  | ) |  |  | (2,435,284 | )
|Dividends and interest
    expense paid                                    |  |  |       |  |  |  | (201,513    | ) |  |  | (179,500    | ) |  |  | (191,383   | )
|Cash received relating
    to other financing activities                   |  |  |       |  |  |  | —           |   |  |  | —           |   |  |  | 70,631     |  
|Net
    cash flows used in financing activities                            |  |  |       |  |  |  | (1,125,413  | ) |  |  | (558,650    | ) |  |  | (2,096,036 | )
|                                                                           |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  
|Net increase/(decrease)
    in cash and cash equivalents                   |  |  |       |  |  |  | (138,839    | ) |  |  | 238,014     |   |  |  | (184,824   | )
|Cash
    and cash equivalents at beginning of year                         |  |  |       |  |  |  | 344,929     |   |  |  | 206,090     |   |  |  | 444,104    |  
|CASH
    AND CASH EQUIVALENTS AT END OF YEAR                               |  |  |       |  |  |  | 206,090     |   |  |  | 444,104     |   |  |  | 259,280    |  
|                                                                           |  |  |       |  |  |  |             |   |  |  |             |   |  |  |            |  





The accompanying
notes are an integral part of these financial statements.












GUANGXI HUA YIN ALUMINUM CO.,
LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|1.  | Corporate information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | Guangxi Hua Yin Aluminum Co., Ltd. (‘the
    Company’), jointly invested by Guangxi Investment Group Co., Ltd., China Minmetals Nonferrous Metals Co., Ltd, and Aluminum
    Corporation of China Limited, is a limited liability company approved to be established in the People’s Republic of
    China (the ‘PRC’) on Feb, 18th, 2003. Its uniform social credit code No. is 91451024759788489E. As of December
    31, 2017, its registered capital is CNY 2,441,986,934.44. The Company is located in Debao Huayin Aluminum plant area, Baise,
    Guangxi Province, China.                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | The principal activities of the company are
    production of alumina, mainly engaged in the sales of alumina.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|2.1 | Basis of preparation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | The financial statements of the Company have
    been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International
    Accounting Standards Board (“IASB”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | Details of the first-time adoption of IFRS
    by the Company are described in Note 2.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | The financial statements have been prepared
    on a historical cost basis. The financial statements are presented in Renminbi (“RMB”) and all values are rounded
    to the nearest thousand (RMB), except when otherwise indicated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | The financial statements provide comparative
    information in respect of the previous periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | Going concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | As at December 31, 2017, the Company's total assets exceeded its total liabilities by approximately RMB 4,526 million (December 31, 2016: RMB3,836 million, December
    31,2015: RMB3,232 million). As at December 31, 2017, the Company's revenue is approximately RMB5,548 million (December 31,
    2016: RMB4,009 million, December 31,2015: RMB4,234 million). The directors of the Company believe that the Company has adequate
    resources to continue operation for the foreseeable future of not less than 12 months from the approval date of these financial
    statements. The directors of the Company therefore are of the opinion that it is appropriate to adopt the going concern basis
    in preparing the financial statements.



|2.2 | Summary of significant accounting
    policies
|--- | ----------------------------------------------





| | The
Group has adopted the following revised IFRSs for the first time for the current year’s financial statements.
| | -----------------------------------------------------------------------------------------------------------------



|                                                                                                            |                                                             
|----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------
|Amendments
    to IAS 7                                                                                     | Disclosure
    Initiative                                   
|Amendments
    to IAS 12                                                                                    | Recognition
    of Deferred Tax Assets for Unrealised Losses
|None of the above amendments to IFRSs has had a significant financial effect on these financial statements.



| |  | The nature and the impact of the amendments
    are described below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Amendments to IAS 7 Disclosure Initiative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised
    Losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Amendments
                                    to IAS 12 clarify that an entity, when assessing whether taxable profits will be available
                                    against which it can utilise a deductible temporary difference, needs to consider whether
                                    tax law restricts the sources of taxable profits against which it may make deductions on the
                                    reversal of that deductible temporary difference. Furthermore, the amendments provide guidance
                                    on how an entity should determine future taxable profits and explain the circumstances in
                                    which taxable profit may include the recovery of some assets for more than their carrying
                                    amount. The amendments have had no impact on the financial position or performance of the
                                    Group as the Group has no deductible temporary differences or assets that are in the scope
                                    of the amendments.








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



| |    | Amendments
to IFRS 12 clarify that the disclosure requirements in IFRS 12, apply to an entity’s interest in a subsidiary, a joint venture
or an associate, or a portion of its interest in a joint venture or an associate that is classified as held for sale or included
in a disposal group classified as held for sale. The amendments have had no impact on the Group’s financial statements as
the Group did not have any disposal group held for sale at the end of the year.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | a) | Current versus non-current
    classification                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | The Company presents assets and
    liabilities in the statement of financial position based on current/non-current classification.                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | An asset is current when it is:                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



| | The Company classifies all other
    assets as non-current.
| | -----------------------------------------------------------





| |  | A liability is current when:
| |  | ----------------------------
| |  | •                           
| |  | •                           
| |  | •                           
| |  | Or                          
| |  | •                           



| |    | The Company classifies all other
    liabilities as non-current.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Deferred tax assets and liabilities are classified
    as non-current assets and liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | b) | Revenue recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | Revenue is recognized to the extent that
    it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of
    when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into
    account contractually defined terms of payment and excluding taxes or duty. The Company has concluded that it is the principal
    in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements, has pricing latitude,
    and is also exposed to credit risks.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | The specific recognition criteria described
    below must also be met before revenue is recognized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Interest income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | For all financial instruments measured at
    amortized cost and interest-bearing financial assets classified as loan and receivables, interest income is recorded using
    the effective interest rate (EIR). The EIR is the rate that exactly discounts the estimated future cash receipts over the
    expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial
    asset. Interest income is included in finance income in the statement of profit or loss.                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | c) | Government grants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | Government grants are recognized where there
    is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant
    relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for
    which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal
    amounts over the expected useful life of the related asset.                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | When the Company receives grants of non-monetary
    assets, the asset and the grant are recorded at nominal amounts and released to profit or loss over the expected useful life
    of the asset, based on the pattern of consumption of the benefits of the underlying asset by equal annual instalments.                                                                                                                                                                                                                                                                                                      








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)





|2.2 | Summary of significant accounting policies (continued)
|--- | ------------------------------------------------------



| | d) | Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | Current income tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | Current income tax assets and liabilities
    for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax
    rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in
    the countries where the Company operates and generates taxable income.                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Current income tax relating to items recognized
    directly in equity is recognized in equity and not in the statement of comprehensive income. Management periodically evaluates
    positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation
    and establishes provisions where appropriate.                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Deferred tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | Deferred tax is provided using the liability
    method, on temporary differences at the end of the reporting period arising between the tax bases of assets and liabilities
    and their carrying amounts for financial reporting purposes. Tax rates enacted or substantively enacted by the end of the
    reporting period are used to determine the deferred tax.                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Deferred tax liabilities are recognized for
    all taxable temporary differences, except when the deferred tax liability arises from the initial recognition of an asset
    or liability at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.                                                                                                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Deferred tax assets are recognized for all
    deductible temporary differences, the carryforward of unused tax credits and any unused tax losses.  Deferred tax
    assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible
    temporary differences, the carryforward of unused tax credits and unused tax losses can be utilized, except when the deferred
    tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability and,
    at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | The carrying amount of deferred tax assets
    is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable
    profit will be available to allow all or part of the deferred tax asset to be utilized.  Unrecognized deferred tax
    assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that
    sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered.                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Deferred tax assets and liabilities are measured
    at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on
    tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Deferred tax assets and deferred tax liabilities
    are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred
    taxes relate to the same taxable entity and the same taxation authority.                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | e) | Cash dividend to owners of equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | The Company recognizes a liability to make
    cash distributions to owners of equity when the distribution is authorized and is no longer at the discretion of the Company.
    A corresponding amount is recognized directly in equity.                                                                                                                                                                                                                                                                                                                                                                                                                               








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)





|2.2 | Summary of significant accounting
    policies (continued)
|--- | ----------------------------------------------------------
|    |                                                           
|    | f)                                                        
|    |                                                           
|    |                                                           
|    |                                                           



| |                                     | Estimated
        useful
        lives | Depreciation
        rate after estimated residual
        values
        (%)
| | ----------------------------------- | -------------------------------------- | -----------------------------------------------------------------------------
| |                                     |                                        |                                                                              
| | Buildings                           | 20-35
    years                        | 2.71-4.75                                                                    
| | Plant
    and machinery             | 5-20
    years                         | 4.75-19.00                                                                   
| | Motor
    vehicles                  | 6-9
    years                          | 10.55-15.83                                                                  
| | Electronic
    equipment and others | 5
    years                            | 19                                                                           



| |    | An item of property and equipment
    and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected
    from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the
    net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income when the
    asset is derecognized.     
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | The residual values, useful lives and methods
    of depreciation of property and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | Construction in progress (“CIP”)
    is stated at cost less accumulated impairment losses. Cost comprises construction expenditures, other expenditures necessary
    for the purpose of preparing the CIP for its intended use and those borrowing costs incurred before the assets are ready for
    their intended use that are eligible for capitalization. CIP is transferred to property and equipment when the CIP is ready
    for its intended use.   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | g) | Borrowing costs                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | Borrowing costs directly attributable to
    the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for
    its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period
    in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing
    of funds.








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|2.2 | Summary of significant accounting
    policies (continued)
|--- | ----------------------------------------------------------



| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | h) | Intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Intangible assets acquired separately are
    measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value
    at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization
    and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized
    and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | The useful lives of intangible assets are
    assessed as either finite or indefinite.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | Intangible assets with finite lives are amortized
    over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be
    impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed
    at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of
    future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate,
    and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized
    in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | Intangible assets with indefinite useful
    lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level.
    The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable.
    If not, the change in useful life from indefinite to finite is made on a prospective basis.                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | Gains or losses arising from derecognition
    of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset
    and are recognized in the statement of profit or loss when the asset is derecognized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | Office software                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | Purchased software is stated at cost less
    any impairment losses and is amortized on the straight-line basis over its estimated useful life.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | i) | Prepaid land lease payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Prepaid land lease payments under operating
    leases are initially stated at cost and subsequently recognized on the straight-line basis over the lease terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | j) | Financial instruments – initial
    recognition and subsequent measurement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | A financial instrument is any contract that
    gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)





|2.2 | Summary of significant accounting
    policies (continued)
|--- | ----------------------------------------------------------



| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | j) | Financial instruments – initial
    recognition and subsequent measurement (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | i) | Financial assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | Initial recognition and measurement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Financial assets are classified, at initial
    recognition, as loans and receivables. All financial assets are recognized initially at fair value plus transaction costs
    that are attributable to the acquisition of the financial asset.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | Purchases or sales of financial assets that
    require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades)
    are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | The Company’s financial assets included
    cash and cash equivalents, trade and bills receivables, financial assets included in prepayments, deposits and other receivables
    and entrusted loan receivable, which are classified as loans and receivables.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | Subsequent measurement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | Loans and receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | Loans and receivables are non-derivative
    financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such
    financial assets are subsequently measured at amortized cost using EIR method, less impairment. Amortized cost is calculated
    by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
    EIR amortization is included in finance income in the statement of comprehensive income. The losses arising from impairment
    are recognized in the statement of comprehensive income in finance costs for loans and in cost of sales or other operating
    expenses for receivables.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    | Derecognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | A financial asset (or, where applicable,
    a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e. removed from the
    Company’s statement of financial position) when:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        



| |     | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | The
    rights to receive cash flows from the asset have expired, or                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | The
    Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
    flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company
    has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained
    substantially all the risks and rewards of the asset, but has transferred control of the asset
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     | When the Company has transferred
    its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what
    extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all
    of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred
    asset to the extent of the Company’s continuing involvement. In that case, the Company also recognizes an associated
    liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations
    that the Company has retained.                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |     | Continuing involvement that takes
    the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and
    the maximum amount of consideration that the Company could be required to repay.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ii) | Impairment of financial assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     | The Company assesses, at each
    reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. Impairment
    exists if one or more events that have occurred since the initial recognition of the asset have an impact on the estimated
    future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment
    may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or
    delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization
    and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in
    arrears or economic conditions that correlate with defaults.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|2.2 | Summary of significant accounting policies (continued)
|--- | ------------------------------------------------------
|    |                                                       
|    | iii)                                                  
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       
|    |                                                       



| |    | iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Offsetting of financial instruments                                                                                                                                                                                                                                                                                                          
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Financial assets and financial liabilities
    are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal
    right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle
    the liabilities simultaneously.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | k) | Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | Inventories are valued at the
    lower of cost and net realizable value. Costs incurred in bringing raw materials to their present location and condition is
    accounted for using the weighted average cost method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | Net realizable value is the estimated
    selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to
    make the sale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | l) | Impairment of non-financial
    assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    | The Company assesses, at each
    reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment
    testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable
    amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable
    amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent
    of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount,
    the asset is considered impaired and is written down to its recoverable amount.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | In assessing value in use, the
    estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
    assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal,
    recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model
    is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or
    other available fair value indicators.                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | The Company bases its impairment
    calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs
    to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years.
    A long-term growth rate is calculated and applied to project future cash flows after the fifth year.                                                                                                                                                                                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | Impairment losses of continuing
    operations are recognized in the statement of profit or loss in expense categories consistent with the function of the impaired
    asset.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)





|2.2 | Summary of significant accounting
    policies (continued)
|--- | ----------------------------------------------------------
|    |                                                           



| | l) | Impairment of non-financial
    assets (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | An assessment is made at each reporting date
    to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased.
    If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized
    impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable
    amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does
    not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had
    no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit or
    loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | m) | Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | Cash and cash equivalents in the statement
    of financial position comprise cash at banks and on hand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | For the purpose of the statement of financial
    position and statement of cash flows, cash and cash equivalents comprise cash on hand and at banks, which are not restricted
    as to use.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | n) | Related parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | A party is considered to be related to the
    Company if:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



| |  | (a) | the
    party is a person or a close member of that person’s family and that person
| |  | --- | -----------------------------------------------------------------------------------



| |  |  | (i)   | has
    control or joint control over the Company;                                           
| |  |  | ----- | ---------------------------------------------------------------------------------------------
| |  |  | (ii)  | has
    significant influence over the Company; or                                           
| |  |  | (iii) | is
    a member of the key management personnel of the Company or of a parent of the Company;



| |  | Or 
| |  | ---
| |  | (b)



| |  |  | (i)    | the
    entity and the Company are members of the same group;                                                                                                                
| |  |  | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | (ii)   | one
    entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other
    entity);                               
| |  |  | (iii)  | the
    entity and the Company are joint ventures of the same third party;                                                                                                   
| |  |  | (iv)   | one
    entity is a joint venture of a third entity and the other entity is an associate of the third entity;                                                                
| |  |  | (v)    | the
    entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company;                                     
| |  |  | (vi)   | the
    entity is controlled or jointly controlled by a person identified in (a); and                                                                                        
| |  |  | (vii)  | a
    person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the
    entity (or of a parent of the entity);
| |  |  | (viii) | The
    entity, or any member of a group of which it is a part, provides key management personnel services to the Company or to the
    parent of the Company.               








GUANGXI HUA
YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)





|2.3 | First-time adoption of IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | These financial
    statements for the year ended December 31, 2017, together with the comparative periods for the years ended December 31, 2016
    and 2015, are the first IFRS financial statements of the Company.  For periods up to and including the year ended
    December 31, 2014, the Company prepared its financial statements in accordance with the accounting principles generally accepted
    in the PRC ("PRC GAAP").  Accordingly, the Company has prepared financial statements which comply with
    IFRS applicable for periods ending on or after December 31, 2017, together with the comparative period financial statements
    as at and for the year ended December 31, 2015 and 2016, as described in the above summary of significant accounting policies.  In
    preparing these financial statements, the Company’s opening statement of financial position was prepared as at January
    1, 2014, the Company’s date of transition to IFRS.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | The Company performed
    a detailed analysis and noted that there were no differences between the financial statements prepared in accordance with
    PRC GAAP and IFRS on total comprehensive income, equity and cash flow, except for some reclassification differences.  Accordingly,
    except for reclassification adjustments, there were no significant adjustments made by the Company in conversion of its PRC
    GAAP financial statements into IFRS financial statements, including the statement of financial position as at January 1, 2015,
    and the financial statements for the years ended December 31, 2015 and 2016.                                                                                                                                                                                                                                                                                                                                 



|3. | Significant accounting estimates
    and assumptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The preparation of
    the Company’s financial statements requires management to make estimates and assumptions that affect the reported amounts
    of revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates
    could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
    periods.                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Estimates and assumptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | The key assumptions
    concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk
    of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described
    below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared.
    Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances
    arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The estimated useful
    lives and residual values                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | The Company determines the estimated useful
    lives and residual values and consequently related depreciation/amortization charges for its property and equipment. These
    estimates are based on the historical experience of the actual useful lives of property and equipment of similar nature and
    functions. Management will increase the depreciation/amortization charge where useful lives are less than previously estimated
    lives, and it will write off or write down technically obsolete or nonstrategic assets that have been abandoned or sold. Actual
    economic lives may differ from estimated useful lives; and actual residual values may differ from estimated residual values.
    Periodic review could result in a change in depreciable lives and residual values and therefore depreciation/amortization
    expense in future periods.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Impairment of trade
    and bills receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | The Company maintains
    an allowance for estimated loss arising from the inability of its customers to make the required payments. The Company makes
    its estimates based on the ageing of its trade receivable balances, customers’ creditworthiness, and historical write-off
    experience. If the financial condition of its customers will deteriorate such that the actual impairment loss might be higher
    than expected, the Company would be required to revise the basis for making the allowance and its future results would be
    affected.                                                                                                                                                                                                                                                                                                             








GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|4. | Revenue                                                                                                                                                 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                         
|   | Revenue, which is
    also the Company’s turnover, represents the net invoiced value of goods sold, after allowance for returns and trade
    discounts.
|   |                                                                                                                                                         
|   | An analysis of the
    Company’s revenue is as follows:                                                                                                 



|                      | 2015        |  | 2016        |  | 2017     
|--------------------- | ----------- |  | ----------- |  | ---------
|                      | (Unaudited) |  | (Unaudited) |  |          
|Revenue               |             |  |             |  |          
|Sales                 |             |  |             |  |          
|- Alumina             | 4,044,602   |  | 3,830,173   |  | 5,312,708
|- Aluminium hydroxide | 132,872     |  | 83,392      |  | 159,599  
|                      |             |  |             |  |          
|Other
    sales       | 56,683      |  | 95,360      |  | 75,588   
|                      |             |  |             |  |          
|                      | 4,234,157   |  | 4,008,925   |  | 5,547,895



|5. | Other
    revenue and net losses
|-- | --------------------------------



|                                 | 2015        |  | 2016        |  | 2017    
|-------------------------------- | ----------- |  | ----------- |  | --------
|                                 | (Unaudited) |  | (Unaudited) |  |         
|                                 |             |  |             |  |         
|Other revenue                    |             |  |             |  |         
|Government grants (note
    (a)) | 31,839      |  | 45,069      |  | 18,540  
|Investment income (note
    (b)) | 4,489       |  | 1,464       |  |         
|Interest income                  | 5,004       |  | 2,944       |  | 31,754  
|                                 |             |  |             |  |         
|Other net losses                 |             |  |             |  |         
|Impairment losses                | (1,171)     |  | (5,628)     |  | (10,595)
|Others                           | (15,463)    |  | (31,291)    |  | (7,488) 
|                                 | 24,698      |  | 12,558      |  | 32,221  
|                                 |             |  |             |  |         



|    | Notes:                                                                                                                                                         
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                
|(a) | Government
    grants mainly represent the grants from government for environmental protection. There is no unfulfilled condition relating
    to those grants.

| | In addition,
    grants related to assets have been deferred and released to profit or loss in accordance with the useful lives of the related
    assets.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Investment
    income mainly represent the income of portfolio issued by bank.
|--- | ------------------------------------------------------------------------------



|6. | Finance
    costs
|-- | -----------------



|                                            | 2015        |  | 2016        |  | 2017   
|------------------------------------------- | ----------- |  | ----------- |  | -------
|                                            | (Unaudited) |  | (Unaudited) |  |        
|                                            |             |  |             |  |        
|Interest on bank loans
    wholly repayable | 227,592     |  | 169,745     |  | 132,273
|                                            |             |  |             |  |        



|7. | Income
    tax
|-- | --------------



| | The Company
    has been identified as “high-tech enterprise” and was entitled to preferential income tax rate of 15% in accordance
    with the PRC Corporate Income Tax Law.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------










GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



| | The major
    components of income tax expense for the years ended December 31, 2015, 2016 and 2017 are:
| | --------------------------------------------------------------------------------------------------------



| | Statement
    of comprehensive income
| | -------------------------------------



|                                        | 2015        |  | 2016        |  | 2017   
|--------------------------------------- | ----------- |  | ----------- |  | -------
|                                        | (Unaudited) |  | (Unaudited) |  |        
|                                        |             |  |             |  |        
|Current income tax
    - Mainland China | 57,756      |  | 44,743      |  | 193,195
|Deferred income tax                     | (9,842)     |  | (9,431)     |  | 21,069 
|                                        |             |  |             |  |        
|Tax charge for the
    year             | 47,914      |  | 35,312      |  | 214,264



| | Reconciliation
    of tax expense applicable to the accounting profit at the PRC’s domestic tax rate to the tax expense at the effective
    rate for 2015, 2016 and 2017:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                                                                                                                             | 2015        |  | 2016        |  | 2017     
|-------------------------------------------------------------------------------------------------------------------------------------------- | ----------- |  | ----------- |  | ---------
|                                                                                                                                             | (Unaudited) |  | (Unaudited) |  |          
|                                                                                                                                             |             |  |             |  |          
|Profit
    before tax                                                                                                                        | 189,720     |  | 173,690     |  | 1,507,883
|                                                                                                                                             |             |  |             |  |          
|Income
    tax at the statutory income tax rate of 15%                                                                                       | 32,571      |  | 24,027      |  | 225,360  
|Effect of different tax
    rate                                                                                                             | (130)       |  | 6,341       |  | 35       
|Adjustments
    in respect of current tax of previous periods                                                                                | (4,755)     |  | (14,927)    |  | (9,365)  
|Items
    not deductible for tax purposes                                                                                                    | 25,422      |  | 19,871      |  | (3,802)  
|Effect
    of deductible losses on unrecognized deferred income tax assets in prior period                                                   | (5,194)     |  |             |  | -        
|The
    impact of deductible temporary differences or deductible losses on unrecognised deferred income tax assets in the current
    period |             |  |             |  | 2,036    
|                                                                                                                                             |             |  |             |  |          
|Tax
    charge for the year at the effective rate                                                                                            | 47,914      |  | 35,312      |  | 214,264  
|                                                                                                                                             |             |  |             |  |          








GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|8. | Property,
    plant and equipment
|-- | ---------------------------------



| | December
    31, 2015
| | ---------------------



|                                             |             |               |             | Electronic     |                 |            
|-------------------------------------------- | ----------- | ------------- | ----------- | -------------- | --------------- | -----------
|                                             |             | Plant
    and | Motor       | equipment      | Construction    |            
|                                             | Buildings   | machinery     | vehicles    | and
    others | in
    progress | Total      
|                                             | (Unaudited) | (Unaudited)   | (Unaudited) | (Unaudited)    | (Unaudited)     | (Unaudited)
|Cost:                                        |             |               |             |                |                 |            
|At
    January 1, 2015                       | 4,358,124   | 4,135,182     | 78,800      | 71             | 528,536         | 9,100,713  
|Additions                                    | (591,016)   | 605,962       | 197,939     |                | 235,082         | 447,966    
|Disposals                                    | -           | -             | 2,938       | -              | 26,928          | 29,866     
|Transfers                                    | -           | -             | -           | -              | 200,186         | 200,186    
|                                             |             |               |             |                |                 |            
|At
    December 31, 2015                     | 3,767,108   | 4,741,144     | 273,801     | 71             | 536,502         | 9,318,626  
|                                             |             |               |             |                |                 |            
|Accumulated
    depreciation and impairment: |             |               |             |                |                 |            
|At
    January 1, 2015                       | 1,526,145   | 1,423,460     | 52,310      | 25             |                 | 3,001,940  
|Depreciation
    charge for the year         | (484,186)   | 843,290       | 146,695     | 19             |                 | 505,818    
|Disposals                                    | -           | -             | 2,349       | -              | -               | 2,349      
|                                             |             |               |             |                |                 |            
|At
    December 31, 2015                     | 1,041,960   | 2,266,750     | 196,656     | 44             | -               | 3,505,410  
|                                             |             |               |             |                |                 |            
|Net
    carrying amount:                     |             |               |             |                |                 |            
|At
    December 31, 2015                     | 2,725,148   | 2,474,394     | 77,145      | 27             | 536,503         | 5,813,216  
|                                             |             |               |             |                |                 |            
|At
    January 1, 2015                       | 2,831,979   | 2,711,722     | 26,490      | 46             | 528,536         | 6,098,772  



| | December
    31, 2016
| | ---------------------





|                                             |             |               |             | Electronic     |                 |            
|-------------------------------------------- | ----------- | ------------- | ----------- | -------------- | --------------- | -----------
|                                             |             | Plant
    and | Motor       | equipment      | Construction    |            
|                                             | Buildings   | machinery     | Vehicles    | and
    others | in
    progress | Total      
|                                             | (Unaudited) | (Unaudited)   | (Unaudited) | (Unaudited)    | (Unaudited)     | (Unaudited)
|Cost:                                        |             |               |             |                |                 |            
|At
    January 1, 2016                       | 3,767,108   | 4,741,143     | 273,801     | 71             | 536,503         | 9,318,625  
|Additions                                    | 744         | 14,887        | 364         | 5              | 340,029         | 356,030    
|Disposals                                    | -           | -             | -           | -              | -               | -          
|Transfers                                    | -           | -             | -           | -              | -               | -          
|                                             |             |               |             |                |                 |            
|At
    December 31, 2016                     | 3,767,852   | 4,756,031     | 274,165     | 76             | 876,531         | 9,674,656  
|                                             |             |               |             |                |                 |            
|Accumulated
    depreciation and impairment: |             |               |             |                |                 |            
|At
    January 1, 2016                       | 1,041,960   | 2,266,750     | 196,656     | 44             | -               | 3,505,410  
|Depreciation
    charge for the year         | 141,750     | 323,084       | 25,976      | 16             |                 | 490,827    
|Disposals                                    | -           | -             | -           | -              | -               | -          
|                                             |             |               |             |                |                 |            
|At
    December 31, 2016                     | 1,183,710   | 2,590,234     | 222,632     | 60             | -               | 3,996,637  
|                                             |             |               |             |                |                 |            
|Net
    carrying amount:                     |             |               |             |                |                 |            
|At
    December 31, 2016                     | 2,584,142   | 2,166,197     | 51,533      | 16             | 876,531         | 5,678,419  
|                                             |             |               |             |                |                 |            
|At
    January 1, 2016                       | 2,725,148   | 2,474,394     | 77,145      | 27             | 536,503         | 5,813,216  










GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|8. | Property,
    plant and equipment (continued)
|-- | ---------------------------------------------



| | December
    31, 2017
| | ---------------------



|                                             |           | Plant
    and | Transport | Electronic | Office    |        | Construction    |          
|-------------------------------------------- | --------- | ------------- | --------- | ---------- | --------- | ------ | --------------- | ---------
|                                             | Buildings | machinery     | tools     | equipment  | equipment | Others | in
    progress | Total    
|Cost:                                        |           |               |           |            |           |        |                 |          
|At January 1, 2017                           | 3,767,852 | 4,747,684     | 274,165   | -          | -         | 76     | 876,532         | 9,675,052
|Additions                                    | 2,963     | 3,428         | 3,330     | 19,194     | 3,760     | (75)   | 203,426         | 236,052  
|Disposals                                    | -         | -             | -         |            |           | -      | -               | -        
|Transfers                                    | -         | -             | -         | -          | -         | -      | 20,630          | 20,630   
|                                             |           |               |           |            |           |        |                 |          
|At December 31, 2017                         | 3,770,815 | 4,759,855     | 277,495   | 19,194     | 3,760     | 0      | 1,059,328       | 9,890,447
|                                             |           |               |           |            |           |        |                 |          
|Accumulated depreciation
    and impairment: |           |               |           |            |           |        |                 |          
|At January 1, 2017                           | 1,183,710 | 2,590,231     | 222,632   | -          | -         | 60     |                 | 3,996,634
|Depreciation charge
    for the year         | 149,733   | 312,053       | 28,516    | 12,625     | 2,608     | (60)   |                 | 505,475  
|Disposals                                    | -         | -             | -         | -          | -         | -      | -               | -        
|                                             |           |               |           |            |           |        |                 |          
|At December 31, 2017                         | 1,333,443 | 2,902,284     | 251,148   | 12,625     | 2,608     | -      | -               | 4,502,109
|                                             |           |               |           |            |           |        |                 |          
|Net carrying amount:                         |           |               |           |            |           |        |                 |          
|At December 31, 2017                         | 2,437,372 | 1,857,571     | 26,347    | 6,569      | 1,152     |        | 1,059,328       | 5,388,339
|                                             |           |               |           |            |           |        |                 |          
|At January 1, 2017                           | 2,584,142 | 2,166,196     | 51,533    | -          | -         | 15     | 876,532         | 5,678,419



| | There
    has been no litigation, claims or assessments against the Company for compensation with respect to the use of these buildings
    to the date of approval of these financial statements. The directors of the Company are of the opinion that the Company legally
    owns and has the rights to use the above property, plant and equipment, and that there is no material adverse impact on the
    overall financial position of the Company.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------








GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|9. | Other
    intangible assets
|-- | ---------------------------



|Office
    software           | December
    31
|----------------------------- | ---------------
|                              | 2015           
|                              | (Unaudited)    
|Cost:                         |                
|At
    January 1              | 508,450        
|Additions                     | 9,593          
|                              |                
|At
    December 31            | 518,043        
|                              |                
|Accumulated
    amortization: |                
|At
    January 1              | 106,542        
|Amortization
    for the year | 18,618         
|                              |                
|At
    December 31            | 125,160        
|                              |                
|Net
    carrying amount:      |                
|At
    December 31            | 392,883        
|                              |                
|At
    January 1              | 401,907        





|10. | Deferred
    tax assets
|--- | -----------------------



|                                                    | December
    31,
|--------------------------------------------------- | ----------------
|                                                    | 2015            
|                                                    | (Unaudited)     
|                                                    |                 
|Deferred
    tax assets:                            |                 
|At
    beginning of the year                        | 9,239           
|Deferred
    tax credited to profit during the year | 9,842           
|                                                    |                 
|At
    end of the year                              | 19,081          



| | The
    deferred tax assets areattributed to the following
    items:
| | ---------------------------------------------------------------------



|                             | As
    at           | December
    31,
|---------------------------- | ------------------- | ----------------
|                             | January
    1, 2015 | 2015            
|                             | (Unaudited)         | (Unaudited)     
|                             |                     |                 
|Deferred
    tax assets:     |                     |                 
|Accrued
    expenses         |                     | 10,178          
|Unpaid
    wages             | 1,116               | 8,405           
|Provision
    for impairment | 323                 | 498             
|Others                       | 7,800               |                 
|                             |                     |                 
|At
    end of the year       | 9,239               | 19,081          





| | There
was nosignificant taxable loss or other temporary difference which is not recognized
deferred tax assets as at December 31, 2017.
| | ---------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                        
| | There
was no significant unrecognized deferred tax liabilities as at December 31, 2017.                                                










GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|11. | Inventories
|--- | -----------



|                                                                    | As
    at          | December
    31,
|------------------------------------------------------------------- | ------------------ | ----------------
|                                                                    | January
    1,2015 | 2015            
|                                                                    | (Unaudited)        | (Unaudited)     
|                                                                    |                    |                 
|Other raw materials, at cost                                        | 182,141            | 180,633         
|Goods in process                                                    | 506,881            | 585,119         
|Finished goods                                                      | 207,394            | 248,577         
|                                                                    |                    |                 
|Total
    inventories at the lower of cost and net realizable value | 896,416            | 1,014,329       





|12. | Trade and
    bills receivables
|--- | -------------------------------





|                      | As
    at          | December
    31,
|--------------------- | ------------------ | ----------------
|                      | January
    1,2015 | 2015            
|                      | (Unaudited)        | (Unaudited)     
|                      |                    |                 
|Trade
    receivables | 63,342             | 220,697         
|Bills
    receivable  | 15,530             | 11,200          
|                      |                    |                 
|                      | 78,872             | 231,897         



| | An aging analysisof the trade receivables as at the end of the reporting period, based on the invoice date, is as follows:
| | --------------------------------------------------------------------------------------------------------------------------





|                       | As
    at          | December
    31,
|---------------------- | ------------------ | ----------------
|                       | January
    1,2015 | 2015            
|                       | (Unaudited)        | (Unaudited)     
|                       |                    |                 
|Trade
    receivables: |                    |                 
|Within
    1 yesr      | 63,342             | 220,697         
|During 1 to 2 years    |                    |                 
|During 2 to 3 years    |                    |                 
|During 3 to 4 years    |                    |                 
|                       |                    |                 
|                       | 63,342             | 220,697         



| | Receivables that were neither past due nor impaired
    relate to customers for whom there was no recent history of default.
| | ----------------------------------------------------------------------------------------------------------------------------





|13. | Prepayments,
    deposits and other receivables
|--- | -----------------------------------------------





|                               | As
    at           |             |  | December
    31, |  |       
|------------------------------ | ------------------- | ----------- |  | ---------------- |  | ------
|                               | January
    1, 2015 | 2015        |  | 2016             |  | 2017  
|                               | (Unaudited)         | (Unaudited) |  | (Unaudited)      |  |       
|                               |                     |             |  |                  |  |       
|Prepayments to suppliers       | 73,253              | 40,342      |  | 47,925           |  | 19,176
|Other receivable               | 53,221              | 27,785      |  | 39,090           |  | 72,695
|Others                         | 336,381             | 83,361      |  | 338,011          |  | 14,272
|Less: Provision for impairment | -                   | 3,216       |  | 7,652            |  | 9,962 
|                               | 462,855             | 148,270     |  | 417,374          |  | 76,181












GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|14. | Cash and cash equivalents
|--- | -------------------------











|                                           | As
    at          | December
    31,
|------------------------------------------ | ------------------ | ----------------
|                                           | January
    1,2015 | 2015            
|                                           | (Unaudited)        | (Unaudited)     
|Cash and cash equivalents                  | 450,257            | 236,090         
|                                           |                    |                 
|Cash
    and bank balances denominated in: |                    |                 
|– RMB                                      | 450,257            | 236,090         
|                                           | 450,257            | 236,090         



| | Restricted Cash in Cash and
    bank balance:
| | ---------------------------------------------





|                                    |  |  | December
    31
|----------------------------------- |  |  | ---------------
|                                    |  |  | 2015           
|                                    |  |  | (Unaudited)    
|Cash deposit of bank
    acceptance |  |  | 30,000         
|                                    |  |  | 30,000         



|15. | Paid-in
    capital
|--- | -------------------



|                                                        | As
    at          | December
    31,
|------------------------------------------------------- | ------------------ | ----------------
|                                                        | January
    1,2015 | 2015            
|                                                        | (Unaudited)        | (Unaudited)     
|                                                        |                    |                 
|Guangxi
    Investment Group Co., Ltd.                  | 830,275            | 830,275         
|Aluminium
    Corporation of China Limited              | 805,856            | 805,856         
|Minmetals
    Aluminum Co,. Ltd. Debao branch           | 805,856            | 805,856         
|Guangxi
    Investment Group Yinhai Aluminium Co., Ltd. |                    |                 
|                                                        |                    |                 
|                                                        | 2,441,987          | 2,441,987       
|                                                        |                    |                 



|    | Note: According to the resolution
    of 26th shareholder meeting, Guangxi Investment Group Co., Ltd. accomplish capital increase to Guangxi Investment Group Yinhai
    Aluminium Co., Ltd. by its 100% shares of the company.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                
|16. | Interest-bearing
    loans and other borrowings                                                                                                                                                                                



|                                                                                     |                        |  | As
    at          | As
    at December 31,
|------------------------------------------------------------------------------------ | ---------------------- |  | ------------------ | ----------------------
|                                                                                     |                        |  | January
    1,2015 | 2015                  
|                                                                                     | Effective
    interest |  | (Unaudited)        | (Unaudited)           
|                                                                                     | Rate
    (%)           |  |                    |                       
|                                                                                     |                        |  |                    |                       
|Current                                                                              |                        |  |                    |                       
|Unsecured                                                                            | 4.35%-4.5675%          |  | 1,444,600          | 1,128,000             
|                                                                                     |                        |  |                    |                       
|Non-current                                                                          |                        |  |                    |                       
|Long
    term interest-bearing bank and other borrowings:                            |                        |  |                    |                       
|Unsecured                                                                            | 4.41%-4.90%            |  | 2,851,650          | 1,944,350             
|                                                                                     |                        |  | 2,851,650          | 1,944,350             
|Less:
    long term interest-bearing bank and other borrowings - due within one year |                        |  |                    | 1,944,350             
|Long
    term interest-bearing bank and other borrowings:                            |                        |  | 2,851,650          | -                     
|                                                                                     |                        |  |                    |                       
|Interest-bearing
    bank and other borrowings denominated in:                       |                        |  |                    |                       
|- RMB                                                                                |                        |  | 4,296,250          | 1,128,000             










GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|17. | Deferred
    government grants                                                                                       
|--- | ---------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                      
|    | The movements of deferred government grants during the years ended
    December 31 2015 2016 and 2017 are as follows:





|                                              | Year
    ended December 31,
|--------------------------------------------- | ---------------------------
|                                              |                            
|                                              |                            
|                                              |                            
|At beginning
    of the year                  |                            
|Additions                                     |                            
|Recognized
    as income during the year      |                            
|                                              |                            
|At end of
    the year                        |                            
|                                              |                            
|Portion classified
    as current liabilities |                            
|                                              |                            
|Non-current
    portion                       |                            
|                                              |                            



|    | Government grants are received of the Company’s
    fixed asset construction.
|--- | -----------------------------------------------------------------------------
|    |                                                                              
|18. | Trade payables                                                               





|              |  | As
    at          |             |             |        
|------------- |  | ------------------ | ----------- | ----------- | -------
|              |  | January
    1,2015 | 2015        | 2016        | 2017   
|              |  | (Unaudited)        | (Unaudited) | (Unaudited) |        
|              |  |                    |             |             |        
|Payable       |  | 468,868            | 559,072     | 602,275     | 428,161
|Bills payable |  | 100,000            | 100,000     | 321,000     |        
|              |  |                    |             |             |        
|              |  | 568,868            | 659,072     | 923,275     | 428,161



|19. | Other
    payables and accruals
|--- | -------------------------------





|                  |  | As
    at          |             |             |        
|----------------- |  | ------------------ | ----------- | ----------- | -------
|                  |  | January
    1,2015 | 2015        | 2016        | 2017   
|                  |  | (Unaudited)        | (Unaudited) | (Unaudited) |        
|                  |  |                    |             |             |        
|Payrolls payable  |  | 10,651             | 54,543      | 56,278      | 56,972 
|Deposit received  |  | 63,932             | 1,329       | 4,990       | 5,579  
|Other tax payable |  | (5,987)            | 58,846      | 138,617     | 196,308
|Dividend          |  | -                  | -           | -           | 21,783 
|Other payable     |  | 107,657            | 472,770     | 184,055     | 182,696
|                  |  | 176,253            | 587,488     | 383,940     | 463,338












GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|20. | Contingent liabilities
|--- | ----------------------



|                            |  | Payments | due
    by period    |              |               |                     
|--------------------------- |  | -------- | -------------------- | ------------ | ------------- | --------------------
|Contractual
    Obligations |  | Total    | Less
    than 1 year | 1-3
    year | 3-5
    years | More
    than 5years
|Finance Lease Obligations   |  | 100,916  | 67,025               | 33,891       |               |                     
|                            |  | 100,916  | 67,025               | 33,891       |               |                     





|21. | Related party transactions
|--- | --------------------------



| | The Company
    had material transactions with following related parties during years ended December 31, 2015, 2016 and 2017:
| | -----------------------------------------------------------------------------------------------------------------------------



|Name of
    related parties                                                                        | Nature
    of relationship            
|-------------------------------------------------------------------------------------------------- | --------------------------------------
|Shanghai Guangtou International
    Trading Co., Ltd.                                              | Fellow
    subsidiary                 
|Guangxi Investment
    Group Yinhai Aluminium Co., Ltd.                                            | Fellow
    subsidiary                 
|Guangxi Investment
    Group Yinhai Aluminium Co., Ltd. Debao branch                               | Fellow
    subsidiary                 
|Guangxi Construction
    Elding Co., Ltd.                                                          | Fellow
    subsidiary                 
|China Aluminum International
    Trading Co., Ltd.                                                 | Subsidiary
    of minority shareholder
|China Aluminum Qinghai
    International Trading Co,. Ltd.                                         | Subsidiary
    of minority shareholder
|China Aluminum Henan
    International Trading Co,. Ltd.                                           | Subsidiary
    of minority shareholder
|China Aluminum Chongqing
    International Trading Co,. Ltd.                                       | Subsidiary
    of minority shareholder
|China Aluminum Chongqing
    International Trading Co,. Ltd. Baise branch                          | Subsidiary
    of minority shareholder
|Minmetals Aluminum
    Co,. Ltd. Debao branch                                                      | Branch
    of minority shareholder    
|Shanghai Lewei International
    Trading Co., Ltd.                                                 | Fellow
    subsidiary                 
|Guangxi Guangyin Business
    Co., Ltd.                                                            | Subsidiary
    of minority shareholder
|Guangxi Investment
    Group Co., Ltd.                                                             | Parent
    company                    
|The 23rd Metallurgical
    Construction Group Co., Ltd. of Minmetals                               | Subsidiary
    of minority shareholder
|Minmetals Aluminum
    Co,. Ltd.                                                                   | Minority
    shareholder              
|Aluminum Corporation
    of China Limited                                                          | Minority
    shareholder              
|Aluminum Corporation
    of China Limited Guangxi branch                                           | Subsidiary
    of minority shareholder
|China Aluminum (Tianjin)
    Construction Co,. Ltd.                                                | Subsidiary
    of minority shareholder
|China Aluminum International
    Engineering Corporation limited                                   | Fellow
    subsidiary                 
|China Aluminum International
    Engineering Corporation limited Guiyang branch                    | Fellow
    subsidiary                 
|China Aluminum Physical
    Distribution Group International Land Port of Southeast Asia Co,. Ltd. | Fellow
    subsidiary                 
|China Aluminum Physical
    Distribution Group Zhongzhou Co,. Ltd.                                 | Subsidiary
    of minority shareholder
|China Aluminum Material
    Supply and Marketing Co,. Ltd.                                         | Subsidiary
    of minority shareholder



The
Company had the following material transactions with related parties during the years ended December 31, 2015, 2016 and 2017:








GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|(i) | Sales
    and Purchase goods/services
|--- | -------------------------------------





|                                                                          | Year
    ended December 31
|------------------------------------------------------------------------- | --------------------------
|                                                                          | 2015                      
|                                                                          | (Unaudited)               
|Sale of aluminum to:                                                      |                           
|Shanghai Guangtou International
    Trading Co., Ltd.                     | 323,591                   
|Guangxi Investment
    Group Yinhai Aluminium Co., Ltd.                   | 70,093                    
|Guangxi Investment
    Group Yinhai Aluminium Co., Ltd. Debao branch      | 907,251                   
|China Aluminum International
    Trading Co., Ltd.                        | 805,087                   
|China Aluminum Qinghai
    International Trading Co,. Ltd.                | 103,083                   
|China Aluminum Henan
    International Trading Co,. Ltd.                  | 46,776                    
|China Aluminum Chongqing
    International Trading Co,. Ltd.              | 6,853                     
|Minmetals Aluminum
    Co,. Ltd. Debao branch                             | 1,229,604                 
|China Aluminum Chongqing
    International Trading Co,. Ltd. Baise branch | 335,586                   
|                                                                          | 3,827,925                 



|Purchase
    of goods from:                                                     |         |        |        
|------------------------------------------------------------------------------- | ------- | ------ | -------
|Guangxi
    Construction Elding Co., Ltd.                                       | 73,662  | 36,317 | 2,739  
|Aluminum
    Corporation of China Limited Guangxi branch                        | -       | 1,213  | -      
|China
    Aluminum International Trading Co., Ltd.                              | -       | 44,178 | -      
|China
    Aluminum Chongqing International Trading Co,. Ltd. Baise branch       | -       | 5,111  | -      
|                                                                                | 73,662  | 86,820 | 2,739  
|                                                                                |         |        |        
|Services provided by:                                                           |         |        |        
|China Aluminum International
    Engineering Corporation limited                |         | 1,997  |        
|China Aluminum International
    Engineering Corporation limited Guiyang branch |         | 13,373 |        
|                                                                                | 102,581 | 15,370 | 165,215
|Service provide
    to:                                                         |         |        |        
|Guangxi
    Investment Group Yinhai Aluminium Co., Ltd. Debao branch            |         |        | 10,859 
|Minmetals
    Aluminum Co,. Ltd.                                                |         |        | 6,942  
|Minmetals
    Aluminum Co,. Ltd. Debao branch                                   |         |        | 1,409  
|China
    Aluminum International Trading Co., Ltd.                              |         |        | 25,659 
|                                                                                |         |        | 44,868 



|(ii) | Amount
    due to related companies
|---- | -----------------------------------



|                                                                                                   | As
    at           | December
    31
|-------------------------------------------------------------------------------------------------- | ------------------- | ---------------
|                                                                                                   | January
    1, 2015 | 2015           
|                                                                                                   | (Unaudited)         | (Unaudited)    
|Guangxi Guangyin
    Business Co., Ltd.                                                            | -                   | -              
|Guangxi
    Construction Elding Co., Ltd.                                                          | 7,744               | 4,438          
|Guangxi Investment
    Group Co., Ltd.                                                             | 100,000             | 100,000        
|The 23rd Metallurgical
    Construction Group Co., Ltd. of Minmetals                               | 55                  | 994            
|Minmetals
    Aluminum Co,. Ltd.                                                                   | 100,000             | 100,000        
|Aluminum
    Corporation of China Limited                                                          | 100,000             | 100,000        
|China
    Aluminum (Tianjin) Construction Co,. Ltd.                                                | -                   | 69             
|China
    Aluminum International Engineering Corporation limited                                   | -                   | -              
|China
    Aluminum International Engineering Corporation limited Guiyang branch                    | 11,917              | 2,986          
|China
    Aluminum International Trading Co., Ltd.                                                 | -                   | -              
|China Aluminum Physical
    Distribution Group International Land Port of Southeast Asia Co,. Ltd. | -                   | -              
|China Aluminum Physical
    Distribution Group Zhongzhou Co,. Ltd.                                 | -                   | -              
|China Aluminum
    Material Supply and Marketing Co,. Ltd.                                         | 6,201               | 100            
|China
    Aluminum Chongqing International Trading Co,. Ltd.                                       | 1,750               | -              
|China
    Aluminum Chongqing International Trading Co,. Ltd. Baise branch                          | -                   | 1,500          
|                                                                                                   | 327,666             | 310,088        










GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|(iii) | Amount
    due from related companies
|----- | -------------------------------------





|                                                                                                   | As
    at           | December
    31 |             |       
|-------------------------------------------------------------------------------------------------- | ------------------- | --------------- | ----------- | ------
|                                                                                                   | January
    1, 2015 | 2015            | 2016        | 2017  
|                                                                                                   | (Unaudited)         | (Unaudited)     | (Unaudited) |       
|Guangxi Investment
    Group Yinhai Aluminium Co., Ltd. Debao branch                               | -                   | -               | 55,798      | 4,763 
|The 23rd Metallurgical
    Construction Group Co., Ltd. of Minmetals                               | 1,045               | -               | -           | -     
|Minmetals
    Aluminum Co,. Ltd. Debao branch                                                      | -                   | -               | 7,358       | 1,409 
|China
    Aluminum (Tianjin) Construction Co,. Ltd.                                                | -                   | -               | 0           | 4     
|China
    Aluminum International Trading Co., Ltd.                                                 | 1                   | 156,864         | 28,569      | 11,199
|China
    Aluminum Henan International Trading Co,. Ltd.                                           | 55,335              | -               | -           | -     
|China
    Aluminum Qinghai International Trading Co,. Ltd.                                         | 26,694              | -               | -           | -     
|China Aluminum
    Physical Distribution Group International Land Port of Southeast Asia Co,. Ltd. | -                   | -               | 566         | -     
|                                                                                                   | 83,076              | 156,864         | 92,291      | 17,375





|(iv) | Borrowing
                                         and loans
|---- | ------------------------------------------------------------





|                                                        | December
    31
|------------------------------------------------------- | ---------------
|                                                        |                
|                                                        |                
|Minmetals Aluminum
    Co,. Ltd.                        |                
|Guangxi Investment
    Group Yinhai Aluminium Co., Ltd. |                
|Aluminum Corporation
    of China Limited               |                
|                                                        |                



|22. | Fair
    Value and Fair Value Hierarchy of Financial Instruments
|--- | ----------------------------------------------------------------



| | Management
    has assessed that the fair values of cash and cash equivalents, trade and bills receivables, financial assets included in
    prepayments, deposits and other receivables, entrusted loan receivable, trade and bills payables, financial liabilities included
    in other payables and accruals and short term interest-bearing loans and other borrowings approximate to their carrying amounts
    largely due to the short term maturities of these instruments. Most of the long term interest-bearing loans and other borrowings
    are with floating interest rate and their fair value is approximate to their carrying amounts.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------












GUANGXI
HUA YIN ALUMINUM CO., LTDNotes to the financial statements(All amounts expressed in thousands of Renminbi unless otherwise stated)



|23. | Standards
    issued but not yet effective
|--- | ------------------------------------------



| | The Group
    has not applied the following new and revised IFRSs that have been issued but are not yet effective, in these financial statements.
| | -------------------------------------------------------------------------------------------------------------------------------------------------



|Amendments
    to IFRS 2                                                | Classification
    and Measurement of Share-based Payment Transactions1                   
|----------------------------------------------------------------------- | ------------------------------------------------------------------------------------------
|Amendments
    to IFRS 4                                                | Applying
    IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts1                
|IFRS
    9                                                              | Financial
    Instruments1                                                                
|Amendments
    to IFRS 9                                                | Prepayment
    Features with Negative Compensation2                                       
|Amendments
    to IFRS 10 and IAS 28                                    | Sale
    or Contribution of Assets between an Investor and its Associate or Joint Venture4
|IFRS
    15                                                             | Revenue
    from Contracts with Customers1                                                
|Amendments
    to IFRS 15                                               | Clarifications
    to IFRS 15 Revenue from Contracts with Customers1                      
|IFRS
    16                                                             | Leases2                                                                                   
|IFRS
    17                                                             | Insurance
    Contracts3                                                                  
|Amendments
    to IAS 19                                                | Employee
    Benefits2                                                                    
|Amendments
    to IAS 28                                                | Long-term
    Interests in Associates and Joint Ventures2                                 
|Amendments
    to IAS 40                                                | Transfers
    of Investment Property1                                                     
|IFRIC-Int
    22                                                        | Foreign
    Currency Transactions and Advance Consideration1                              
|IFRIC-Int
    23                                                        | Uncertainty
    over Income Tax Treatments2                                               
|Annual
        Improvements
        2014-2016
        Cycle             | Amendments
    to IFRS 1 and IAS 281                                                      
|Annual
        Improvements
        2015-2017
        Cycle             | Amendments
    to IFRS 3, IFRS 11, IAS 12 and IAS 232                                     
|                                                                       
|1	Effective
    for annual periods beginning on or after 1 January 2018
|2	Effective
    for annual periods beginning on or after 1 January 2019
|3	Effective
    for annual periods beginning on or after 1 January 2021
|4No mandatory effective date yet determined but available for adoption 





| | The Company
    is in the process of making an assessment of the impact of these new and revised IFRSs upon initial application. So far, the
    Company considers that these new and revised IFRSs may result in changes in accounting policies and are unlikely to have a
    significant impact on the Company’s results of operations and financial position.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|24. | Events
    after the reporting period
|--- | -------------------------------------



| | As of
    the approval date of these financial statements, there was no subsequent event after December 31, 2017 that needs to be disclosed.
| | --------------------------------------------------------------------------------------------------------------------------------------------



|25. | Approval of the financial
    statements
|--- | ----------------------------------------



| | The financial
    statements were approved and authorized for issue by the Board of Directors on [May 28, 2018].
| | ----------------------------------------------------------------------------------------------------------------