In late December, 2021, Hailiang (002203)made announcement that the Company officially kicked off the opening ceremony of the project of 150000-ton-annual-capacity high-performance copper foil material in Lanzhou New Area.Boasting a total investment of RMB 8.9 billion, the project is mainly devoted to building a production base of 100000-ton-annual-capacity highperformance lithium battery copper foil material and 50000-ton-annual-capacity high-performance electronic circuit copper foil material.

Specifically, the project of 150000-ton-annualcapacity high-performance copper foil material is going to be constructed in three phases, with 50000 tons of capacity completed in each phase.In phase one, it is planned that 25000 tons of capacity will be put into operation in Q4 of 2022, and the remaining will be put into operation in Q2 of 2023.In phase two, it is planned that the construction will kick off in Q3 of 2023, and 25000 tons of capacity will be put into operation in Q2 of 2024, and the remaining will be put into operation in Q4 of 2024.In phase three, it is planned that the construction will kick off in Q3 of 2024, and 25000 tons of capacity will be put into operation in Q2 of 2025,and the remaining will be put into operation in Q4 of 2025.

The production and sales of NEV keep refreshing market expectations, leading to continuous increase in demands for power batteries.As an important material for power batteries, lithium battery copper foil accounts for about 5%-8% of total cost, so the material is an important part in industry chain for power battery companies to make deployments.According to the latest data from Batterydir.com,the total planned capacity of TOP 10 companies in Chinese power battery industry has grown from nearly 2.1TWh in mid-November to over 2.77TWh now, with an increase of 31.9% since more than one month ago.As a result, the demands for lithium copper foil also increase.According to the forecast of Ping An Securities,the scale of Chinese lithium battery copper foil market will keep growing at the compound growth rate of 35% during 2020-2025, and will achieve the market scale of 470000 tons in 2025.Specifically, the proportion of power battery field will grow from 55% in 2020 to 66% in 2025, and the proportion of energy storage field will grow from 12% in 2020 to 25% in 2025.Additionally,according to the analysis of Huachuang Securities,globally speaking, supply-demand relation entered a status of tight balance in 2021, with the obvious problem of shortage of products below 6μm.

According to Hailiang, while promoting the copper foil project in Lanzhou, the Company is still going to closely follow global copper foil market trend.It will give full play to its rich experience and capability of overseas plant construction, and strengths of globalization to further accelerate detailed survey of overseas copper foil market, and to comprehensively demonstrate the feasibility of the construction of 100000-ton-annual-capacity copper foil projects in Europe and America and Southeast Asia region.The Company will also actively seek opportunities to cooperate with and acquire quality copper foil manufacturing companies.