Dear friends:

Hello!

Welcome to the Chanhen Group website! We aim to communicate the business aspirations and the core values of Chanhen to everyone through this website. Our goal is to convey the core idea of “Innovation·Altruism”to the society!

The Chanhen Group originated in Shifang City, Sichuan Province. The Group has been exploring and engaging in the phosphorus chemical industry for over 20 years, establishing a structure of the phosphorus ore mining and the phosphorus chemical industry as the core business, with diversified development and group management. Chanhen, a subsidiary of the Group, is a listed company of the Shenzhen Stock Exchange.

We have achieved remarkable accomplishments over the past twenty years, including establishing “two products becoming the leader in the industry” and “two technologies filling the gaps in China”. The star product “Monocalcium Phosphate (MCP) Feed Grade” has earned a solid reputation in Asia. Additionally, our “fire protection Monoammonium Phosphate (MAP)” has successfully filled the market gap in China's industry.

However, the accomplishments were already in the past, the heavy responsibilities still lie ahead in the future. Currently, the global climate change resulting from carbon emissions poses severe challenges to the human living environment. Moreover, humanity is confronted with the dual crises of “food and energy.” Many brave enterprises take on the responsibility of defending the homeland through the industry. Chanhen had determined not to lag behind. It relies on its abundant “phosphorus and fluorine” resources and core technological advantages to swiftly establish the new energy material industrial chain.

（I）

Firstly, Chanhen controls a large scale of highquality phosphate ore resources. The phosphorus ore resources under our direct and indirect control total 540 million tons. The scale of phosphorus ore resources available for use in the next five years will be up to 10 million tons/year. Phosphate ore resources are located in Fuquan City and Weng’an County of Guizhou Province, known as the “Asian Phosphorus City,” boasting phosphorus ores of comprehensive “outstanding quality.”

Our phosphorus ore contains 3% of fluorine, with available fluorine resources ranging from 200,000 – 300,000 tons/year. The fluorine within phosphorus ore is extracted during the phosphoric acid production and then processed into fluorine materials. Fluorine materials have excellent chemical properties and have become crucial materials in the new energy battery and photovoltaic industries, as their value becoming increasingly prominent.

Phosphours ore is a non-renewable resource that has been listed as a national mineral species in danger since 2010. Phosphorus ore is also known as “the food of the grain”. Moreover, high-quality phosphorus ore is a key raw material for the development of “lithium, fluorine and phosphorus” new energy materials, which is expected to become increasingly scarce. Therefore, we cherish the phosphorus ore as a precious gem.

Secondly, we have also completed the reserves of core technologies. Chanhen is a technology-oriented company, guided by the principle of “innovation is the soul of Chanhen”. For a long period, we have upheld the corporate mission of “achieving pollution-free production in the phosphorus chemical industry.” We have undertaken significant technological innovations over the past 20 years, and have achieved over 100 invention patents. These include breakthroughs such as the “full set technology of CH hemi-hydrate wet-processed phosphoric acid”, “Filling technology of modified cementitious materials from hemi-hydrate phosphogypsum” and other basic technologies at the leading level in the industry. We have successfully addressed challenges related to clean production and obtained the certification of “Green Factory” by the Ministry of Industry and Information Technology. We have led in achieving a green, efficient and sustainable development of the phosphorus chemical industry. As a result, we have cultivated a robust technological competitive edge.

In particular, technologies mastered by Chanhen such as purified phosphoric acid, second-generation iron phosphate, anhydrous hydrogen fluoride, etc., are at the forefront of global advancements. These achievements serve as a robust technological foundation for the transformation and upgrading of Chanhen’s new energy materials.

(II)

Chanhen aims to establish multiple “mining and chemical-manufacturing integrated” new energy material circular industry bases over the next 5-8 years, leveraging its resources and technological advantages based on a 10 million tons/year phosphate ore capacity, with the focus being on advancing “phosphorus and fluorine-based”battery materials. Chanhen has formed industrial chain cooperations with leading players in the EV battery industry, including Guoxuan Holdings and Sunwoda, to develop two large-scale “mining and chemical-manufacturing integrated” new energy material circular industry bases in Fuquan, Guizhou, and Weng’an, Guizhou. Additionally, taking advantage of the unique geographical position of Fusui, Guangxi, it will establish another new energy material circular industry base. Furthermore, we are proactively planning new industry layouts.

Chanhen collaborates with Jinyuan Group, Sunwoda and other enterprises to proactively integrate lithium resources domestically and internationally. They are gradually developing lithium processing capabilities to ensure a stable supply of lithium resources.

In addition, Chanhen places significant emphasis on the entire new energy battery industry chain. We have laid out a large-scale production of lithium iron phosphate cathode materials, as well as the more cost-effective composite sodium iron phosphate cathode materials and sodium-ion batteries.

With the advancement of “phosphorus-based” battery technology, I believe humanity has discovered the key to unlocking the the cure for energy crisis of the world. The key lies in lithium iron phosphate and Sodium iron phosphate batteries based on “phosphorus-fluorine” materials. In a remarkable manner, Chanhen is closely linked to the destiny of humanity, which is not only a privilege for Chanhen but also its responsibility. We hope that our efforts will bring positive changes to the world!

(III)

Russell once said that there have been three emotions, simple but overwhelmingly strong, governing his life: “the longing for love, the search for knowledge, and unbearable compassion for the suffering of mankind.”

In this context, my understanding is that the compassion here represents a profound awakening to the mission and responsibility of the humanity. As individuals, we may seem insignificant. However, life is noble when it is associated with humanity’s fate. We should always focus on the human environment and life. We should continually engage in exploration and innovation to create new value and strive to contribute our modest efforts to the survival and development of human. It is also one of the origins of the philosophy of “Innovation · Altruism”.

Standing at the forefront of the times, we are always committed to the core development of “resources + technology + industrial chain”, promoting the spirit of “Go forward, Pragmatic, Collaboration and Learning” of Chanhen to build a circular economy “based on phosphorus but above phosphorus” and to practice the new mission of “enabling the circular economy to benefit humanity!”

We will firmly seize the opportunities bestowed by the times and advance the transformation of new energy materials of“phosphorus, fluorine and lithium” with extraordinary courage. We are confident in becoming the “brightest star” in the new energy race track, providing outstanding products and services for a better human life!

Welcome to join the hopeful and extraordinary cause of Chanhen. We would be honored to have your understanding, support, and assistance!

Li Jin