Explanation of Operational Impact of U.S. Reciprocal Tariffs

After reviewing U.S. import tariff documents, the Company's product “sodium tungstate” is not included among the products subject to additional tariffs, and in 2024 the quantity of the Company's “sodium tungstate” exported to the United States accounted for only approximately 10% of its total export volume. In addition, China's Ministry of Commerce implemented export controls on five major items, including tungsten, starting February 4 of this year, and the United States had already imposed an additional 25% import tariff on tungsten products imported from China into the United States. Therefore, after the United States implemented reciprocal tariffs this time, the Company's sodium tungstate sales remain quite competitive.

In addition, the subsidiary's “cobalt metal-related products” are not included among the products subject to additional tariffs and have not yet been exported to the United States; therefore, the United States' implementation of reciprocal tariffs this time also has no impact on the subsidiary's financial position or operations.