Download - Masan High-Tech Materials

CONTENT

Message from Management Team2021 Key Highlights2021 Awards & Recognition

BUSINESS OPERATION REPORT

Business Overview Report2021 Business PerformanceManagement Team Assessment ReportBoard of Directors Assessment ReportAudit Committee’s Review of the Company’s OperationsCorporate Governance ReportRisk Management

16182124263042

71012

SUSTAINABILITY PERFORMANCE REPORT

Sustainability FrameworkImproved Sustainability Governance StructureEnergy Management CommitteeSustainability Innovation Sustainability Mining & Raw MaterialsSustainability ProcessingSustainability Supply Chain Management Sustainability Human ResourcesSustainability Health & SafetySustainability EnvironmentSustainability Community

576264 68828896

104122142160

176179180181185187190

FINANCE REPORT

Finance OverviewStatement of the Board of ManagementIndependent Auditor’s ReportConsolidated Balance SheetConsolidated Statements of IncomeConsolidated Statements of Cash FlowsNotes to The Consolidated Financial Statements

GENERAL INFORMATION

Vision & MissionCompany ProfileCompany HistoryFlagship AssetsOur ProductsShareholders Information

244245246248252264

DEVELOPMENT STRATEGIES

Sustainability at MHT Development ObjectivesSocial Development Objectives‘’Go Global” Execution Strategy

300300300301

GROUP STRUCTURE

MHT StructureOrganisation ChartManagement Structure

270282284

302303

Cautionary Note Regarding Forward Looking StatementsAbbreviations/Definitions

MESSAGE FROM MANAGEMENT TEAM

Craig Richard BradshawChief Executive Officer

I am pleased to report that Masan High-Tech Materials performed strongly in 2021 despite the challenges of the global Covid-19 pandemic and its subsequent impact to global supply chains and transport systems. We achieved record revenue for the year along with record tungsten production and recycling rate. At 19,997 tonnes of WO3 equivalent production for the 2021 year we believe we are now the largest producer of Tungsten Chemicals and Powders outside China.

Our future is bright. We believe the world needs an ongoing supply of the critical, advanced materials and minerals we produce to meet global mega trends in renewable energy, electric mobility, recycling, urbanization and sustainability. MHT is well placed to not just participate but lead technological developments in these spaces. It is important that global material demand is met sustainably and MHT is well placed to achieve this through our track record of strong environment performance, leading recycle capability, ethical sourcing, social value creation and the quality and capability of our people.

Through 2021 we continued to integrate the H.C. Starck Global Tungsten Powders business into MHT. This process has already delivered improved performance with our HCS business delivering significantly better financial performance over that achieved by prior owners. Throughout MHT we are driving efficiency improvements through the launch of a Business Process Management review to standardize and optimize our global business operating model. This will take time to implement however is expected to deliver significant business operating efficiencies and improve overall profitability over the next two years.

Our ongoing investment in innovation and development is also delivering value with new products specifically tailored for the electric mobility and 3D printing segments coming into the market soon. Beyond these new product ranges the team have also developed new analytical equipment which is now in prototype having been patented in late 2021. We will be working through commercialization of this new equipment advancement through 2022 and look forward to bringing you more detail on this innovation in future. In recycling we have filed additional patent applications for a new recycling process for cobalt bearing sludges and battery black mass.We are currently undertaking confirmatory test work which is expected to be completed towards the end of 2022. If successful, this new process will enable the recycling of various hard cutting tool sludges and battery black mass with a

lower environmental footprint than current recycling processes. We see this as a potential game changer for environmentally sustainable recycling of Lithium, Cobalt, Nickel, Copper, Manganese, etc. from these materials. Beyond these the team have various product and process improvements at various stages of development that will further enhance our product portfolio and production capabilities. Very exciting.

Our forward order book is the strongest it has been in many years which is positive for both sales volumes and prices. After a weak Q1 2021, the order book continued to strengthen to the point where in some months we are now oversold and having to manage customer and freight schedules to ensure we meet all customers’ demands. This makes a challenging time for our people but one which we will rise to, ensuring we continue to deliver for our customers.

Disappointingly, we have not been able to successfully monetize our stockpile of Copper Concentrates with approximately US$200m in revenue tied up in this stockpile as we work with Government agencies to clear a path for monetization. While a positive problem to have as the Copper Price has continued to increase while the stockpile has built up, we would like to crystalize both the cash and profits locked up in these inventories.

Our employees continue to be our greatest asset and they continue to deliver in productivity, cost focus, positive attitude and pride in being a Masaner. Globally we now employ 2074 employees across seven countries. While not quite the United Nations we are certainly headed that way, and while our people come from diverse backgrounds and nationalities, the common trait they all share is the desire to do good, be innovative, take care of each other and be successful. Key ingredients for a great team and a great company.

As we look forward, we see a world full of opportunities for MHT to grow from the solid base we have now clearly established. Thank you for your ongoing support as shareholders in our great company.

76 Masan High-Tech Materials Message from Management team

2021 KEY HIGHLIGHTS

for Taxes and Fees incurred in Vietnam

1,142

billion 69

8.28%

contributed to the socio-economic development activities in Thai Nguyen province, Vietnam

Recertification as RMAPConformance Smelter

Using only conflict-free sourcedraw materials

Specific energy savings(electricity and natural gas)

in revenuebillion

billion

13,564 VND

VND

Sustainable Business in VietnamTOP 100

4 consecutive yearsAward Winner

(2018 - 2021)

VND

GJ/t (WO3)

Energy savings

16.7%/t

95.2%Operation time of Processing Plant (target 94,1%)

82.9%Recycling rate

34,0002,074employees globally training man-hours

(WO3)

1110 Masan High-Tech Materials 2021 Key Highlights

Masan High-Tech Materials and its subsidiaries remained on the list of the distinguished local and international organizations in 2021. MHT has left powerful imprints on the journey of going global, cementing its position as a leading industrial minerals manufacturer in Vietnam, contributing to Masan Group’s impressive 2021 business results and putting its name on the global high-tech materials map.

Below are the awards and honors that Masan High-Tech Materials has proudly received in recognition of our efforts and accomplishments throughout the year. CERTIFICATE OF MERIT FOR NUI PHAO MINING FOR ITS

CONTRIBUTIONS TO THE ECONOMIC DEVELOPMENT OF THE NORTHERN MIDLAND AND MOUNTAINOUS AREAS, VIETNAM

Awarded by Vietnam Chamber of Commerce and Industry (VCCI)

CERTIFICATE OF MERIT FOR NUI PHAO MINING FOR OUTSTANDING ACHIEVEMENTS IN THE PATRIOTIC EMULATION MOVEMENT IN THAI NGUYEN PROVINCE

Awarded by Thai Nguyen Provincial People’s Committee

RECOGNITIONAWARDS

2021 &

2021 Awards & Recognition

CERTIFICATE OF EXCELLENT ENTERPRISE OF THAI NGUYEN PROVINCE 2021 FOR NUI PHAO MINING

Awarded by Thai Nguyen Provincial People’s Committee

CERTIFICATE OF TOP 100 VIETNAM EXCELLENT BRANDS 2021 FOR MASAN HIGH-TECH MATERIALS

Voted and awarded by Vietnam Economic Times

CERTIFICATE OF MERIT FOR OUTSTANDING PERFORMANCE OF RED CROSS WORK IN DAI TU DISTRICT FOR THE PERIOD 2016 - 2021

Awarded by Dai Tu District People's Committee

CERTIFICATE OF “TOP 50 VIETNAM BEST GROWTH 2021” FOR MASAN HIGH-TECH MATERIALS

Voted and awarded by Vietnam Report JSC

TOP 100 VIETNAM GOLD STAR AWARD 2021 FOR NUI PHAO MINING

Awarded by Young Entrepreneurs Vietnam Association

CERTIFICATE OF TOP 100 SUSTAINABLE BUSINESSES IN VIETNAM 2021 FOR MASAN HIGH-TECH MATERIALS

Voted and awarded by Vietnam Chamber of Commerce and Industry (VCCI)

CERTIFICATE OF THE “ENTERPRISE FOR EMPLOYEES IN THE PERIOD OF 2019- 2021” FOR NUI PHAO MINING

Awarded by Viet Nam General Confederation of Labor

CERTIFICATE OF MERIT FOR ACHIEVEMENTS IN COVID-19 PREVENTION AND CONTROL IN DAI TU DISTRICT IN 2021 FOR NUI PHAO MINING


CERTIFICATE OF MERIT FOR NUI PHAO MINING FOR ITS BUSINESS ACHIEVEMENTS AND CONTRIBUTIONS TO THE SOCIO-ECONOMIC DEVELOPMENT OF DAI TU DISTRICT IN 2021


1312 Masan High-Tech Materials

Business Operation Report 15

BUSINESS OPERATIONREPORT

Business Overview Report

2021 Business Performance

Management Team Assessment Report

Board of Directors Assessment Report

Audit Committee’s Review of the Company’s Operations

Corporate Governance Report

Risk Management

16

18

21

24

26

30

42

BUSINESS OVERVIEW REPORT

2021 - 2022 Economic & Financial Review and Outlook

2020 was undoubtedly a difficult year due to the initial impacts of Covid-19 but it provided us with the opportunity to be ready for the recovery which commenced in the early part of 2021 and continued to gain momentum throughout the remainder of the year. We remain equally bullish about the economic environment heading into 2022 despite some lingering concerns, with pricing and demand for all our products at or near record highs and expected to remain that way throughout 2022 on the back of expected continued growth in global GDP and strong demand for commodities in general.

The World Bank estimates global GDP to have grown by 5.5% in 2021 and although a reduction is expected in 2022, is still forecasting significant growth of 4.1% in 2022 which as compared to 2021 is expected to be negatively impacted by Covid-19 flare-ups, diminished governmental support and lingering supply chain bottlenecks but still significantly positive for the commodities markets in which we operate.

In our main markets, Vietnams GDP is expected to increase from 2.6% in 2021 to 5.5% in 2022, German GDP is expected to increase from 2.7% in 2021 to 3.6% in 2022, the US will decrease from 5.7% in 2021 to 3.8% in 2022 and China is expected to grow by 5.1% in 2022 following 8.0% growth in 2021. The 2022 forecasts do not take into account any potential impacts from the Russia-Ukraine conflict that com-menced in late February 2022.

As reported by the World Bank inflation continues to surprise on the upside with me-dian headline inflation reaching 4.6% on a twelve-month basis in October 2021, up from the pandemic trough of 1.2% in May 2020. Inflationary impacts have been felt in our business throughout 2021 and this trend is expected to continue into 2022 as a result of rising energy, commodity and freight costs. We continue to monitor these developments very closely.

Freight disruptions in 2021 were an issue but we have been able to manage these impacts with little to no impact to our business or customers. We expect the freight situation to improve from the second half of 2022.

Whilst we are bullish for our prospects in 2022, factors such as a further escalation of the Russia-Ukraine conflict, or a negative flare-up in relation to Covid-19 may temper the growth prospects and have a negative impact on the ongoing operation of our business. These impacts could be severe, but we remain vigilant to any changing circumstance and will adjust our plans accordingly should such a situation arise.

2020 Industrial Metal & Chemical Markets

Tungsten index prices went on a tear throughout 2021. The price moved quickly throughout 1Q2021 from US$230/MTU to US$270/MTU by the end of March as our customers commenced restocking on their im-proved downstream demand fundamentals. Throughout the remain-der of the year the price continued to increase and ended the year at US$320/MTU. Underinvestment in new mines over many years and ongoing environmental inspection by Chinese government to improve the sustainability of its industries combined with the ongoing improved demand fundamentals is expected to continue to support increasing prices for the foreseeable future.

Fluorspar pricing started the year at US$412/DMT and finished the year 9% higher at US$448/DMT. Throughout 2021 MHT has fully performed against all of its contractual commitments and by prudent production management and freight execution has managed to avoid many of the supply chain issues that affected other suppliers in the market; a sit-uation which has further strengthened relationships with our strategic customers. Increased demand from the AlF3 sector which accounts for ~20% of Acidspar demand, and a strong forecast for the HF market are indicative of a good year for prices in 2022 and the MHT sales book is looking robust.

Copper pricing increased by 25% from US$7,742/ton to close out the year at US$9,691/ton and in the early part of 2022 has surpassed the record pricing levels set in 2021 to be sitting at ~US$10,800/ton. Higher than historical pricing trends are expected to continue for copper due to the significant demand increase caused by its use in battery and other new technologies.

Cobalt prices more than doubled in 2021 with a spectacular rally that continued for 100 consecutive days and eventually broke through $35/lb, a level last seen in 2018. Demand from the more traditional Cobalt applications benefited from a recovery in the metallurgical sector, in par-ticular Industrial Gas Turbines and Medical alloys usage, and the start of a recovery in aerospace with 2H2021 seeing increased aircraft deliv-eries (Airbus and Boeing combined up 31.5% YOY). However, the main driver behind the price increase was strong demand for Cobalt Chem-icals used in the production of battery Cathode precursors, which are primarily used in the production of Lithium-ion batteries for electric vehi-cles (EV’s). EV sales jumped from 3.3mio in FY2020 to 5.8mio vehicles in FY2021 as Global momentum towards zero-emissions road transport accelerated significantly. At COP26 in 2021 eleven Global Automakers including GM, Ford, JLR, Mercedes Benz, committed to transitioning all of their sales to zero emissions by 2040 and in some ‘leading markets’ by 2035. Despite the trend for Cobalt thrifting and alternative battery chemistries, Cobalt demand for battery related applications is forecast to rise by 74% between 2020 and 2025.

Bismuth prices moved up by 38% to end the year at a high of US$3.95/lb after a six-month period of stability and range bound trading either side of US$3.75/lb. China as the world’s largest producer of Bismuth showed an increase of 16% YOY in terms of Bismuth metal exports thanks to a recovery in demand from the alloy sector , and 48% YOY in terms of Bismuth Oxide exports signaling a return to pre-Covid-19 levels for the Pharmaceutical, Cosmetics and Pigmentation applications.

AVERAGE COMMODITY PRICESUnit

Average FY2021

Average FY2020

% change

At the date of 31.12.21

At the date of 31.12.20

APT European Low* USD/mtu 286 222 29% 320 230

Bismuth Low* USD/lb 3.6 2.6 38% 4.0 2.9

Copper* USD/t 9,319 6,163 51% 9,691 7.742

Fluorspar Acid Grade ** USD/lbs 419 402 4% 448 412

Cobalt* USD/lbs 22.6 14.2 60% 31.9 14.6

*Metals Bulletin, ** Industrial Minerals

Business Operation Report 1716 Masan High-Tech Materials

2021 BUSINESS PERFORMANCE

Oxides, Powders, Carbides & Specialty Chemicals

Production of intermediate Tungsten products through Masan Tungsten Company (MTC) and H.C. Starck (HCS) totaled 19,997 tons for the year 2021 which is a 97% increase over 2020 on the back of full year consolidation of the HCS business (7 months 2020) and significantly improved demand from the customer base. Record production levels were achieved in both Vietnam (MTC) and China. Overall, 26% of production came from recycling of tungsten scraps with 74% coming from primary supply sources including MHT’s Nui Phao Mine in Thai Nguyen.

Fluorspar production for 2021 was 215,027 tons, which is 2% lower as compared to 2020. Production was impacted by higher feed grades which offset by slightly lower through put and impacts of the unplanned machinery breakdown.

Cobalt production was 132% higher on full year consolidation of the HCS business and 36% increased production on a like for like 12 months basis.

Copper production was higher by 2% at 9,208 tons contained. Head grades were 6% higher due to an increase in the mined grade for the year which was partially offset by a reduction in recoveries.

Bismuth production was 108% higher at 2,067 tons contained due to the extended maintenance shutdown that occurred to the bismuth circuit in 2020

Fluorspar, Copper, Bismuth Cement and Cobalt

Total Tungsten Products - contained tons

Fluorspar Production - dmt

Copper Production - contained tons

Bismuth Production - contained tons

2020 2021

2020 2021

19,997

10,171

20212020

215,027219,920

2020 2021

9,0619,208

993

2,067

Annual Production Net Revenue

Net Revenues were up 86% year on year at VND13,564 billion. Tungsten revenues were significantly higher due to the consolidation of HCS (twelve months in 2021 as compared to seven months in 2020) and the higher APT price for FY2021 ($286/mtu) as compared to the same period last year ($222/mtu). Fluorspar revenues were down due to lower production impacted by the unplanned machinery breakdown in 3rd quarter of 2021, whilst Bismuth revenues were at VND261 billion (FY2020 VND36 billion), due to the extended maintenance shutdown that occurred in 2020. Copper revenues were VND40 billion on limited sales to a domestic smelter (FY2020 VND1,233 billion).

EBITDA

EBITDA increased by 114% for 12M2021 at VND3,070 billion - second highest ever EBITDA recorded, primarily a reflection of strong demand and pricing of MHT Tungsten products. The HCS business contributed significantly to the overall MHT result with an EBITDA of VND746 billion whilst the Vietnam based businesses (NPMC and MTC) contributed VND2,324 billion to the overall result. This result vindicates the decision to purchase the HCS business in the early stages of the Covid-19 pandemic in 2020 and sets MHT up well for the future.

Attributable Net Profit

Masan High-Tech Materials delivered an attributable net profit of VND196 billion for 2021, a VND157 billion increase over the same period last year. This result was achieved on the back of improved fundamentals and demand in the Tungsten market despite less than anticipated copper sales.

Net Revenue

EBITDA

Attr. Net profit

Cash Flows

2020 2021

2020 2021

2020 2021

7,291 bn

13,564 bn

1.433bn

3,070 bn

39.2 bn

964.4 bn

196 bn

592 bn

Cash Flows from Operating Outflows

The Company reported cash outflows from operating activities of VND592 billion, an increase of VND372 billion year on year (FY2020 cash outflows of VND964 billion). The improvement in cash flows from operations was due to higher profit before tax but negatively impacted by working capital increases mainly resulting from inventory impacts caused by the need to carry higher inventory volumes to negate the worldwide freight disruptions caused by Covid-19 higher pricing for raw materials and reagents. We expect the negative working capital to stabilise and reverse in the second half of 2022 which will have a positive impact on overall cash flow for the year.

2020 2021


Cash Flows from Investing Activities

In 2021 the company’s cash inflows for investing activities is VND300 billion. Adjusted for the collection of long-term deposits to banks and interest earned from such deposits, the net spending on fixed assets and other investing activities totaled VND873 billion (2020 VND2,515 billion on a like for like basis), a VND 1,642 billion decrease year on year. Capital expenditure in 2020 included VND1,054 billion for the H.C. Starck business acquisition net of cash received as part of the purchase. Additionally, during 2020 VND851 billion was paid to a Masan Group (MSN) related party for historical settlement of an intercompany loan relating to the construction period of NPMC. Major capital expenditure in 2021 was for ongoing land compensation, expansionary capital projects focused on improving efficiencies and plant performance and sustaining capital projects primarily related to the tailing facility.

Debt Maturity

Of the Company’s total debt obligations, 34% is maturing within 1 year. The Debt/EBITDA ratio decreased from 9,3x in 2020 to 4.6x in 2021. Despite higher borrowings, the decrease in 2021 Debt/EBITDA ratio was mainly due to improvement in EBITDA performance as mentioned above.

2021

Less than 1 year

More than 1 year

Debt Maturity

Cash Flows

2020

2,624 bn

69%

34%

300 bn

Net Assets & Owner’s Equity

The net assets/owner’s equity increased 2% year on year to VND14,341 billion in 2021 from VND14,080 billion in 2020. This increase was primarily due to NPAT for 2021 of VND196 billion and other balance sheet adjustment with regards foreign exchange differences and pension liability in HCS business.

2020 2021

14,080 bn 14,341 bn

Net Assets & Owner’s Equity

MANAGEMENT TEAM ASSESSMENT REPORTDear Shareholders,

Masan High-Tech Materials Corporation (“Company” or “MHT”) net business revenue for 2021 was VND13,564 bn, a record for the company since its inception and a significant increase of VND6,273bn as compared to 2020 on the back of improved market fundamentals and full year consolidation (7 months 2020) of H.C Starck Holding (Germany) (“HCS”) business.

Some highlights that MHT achieved in 2021:

Record revenue of

Second highest ever EBITDA recorded at Record production and revenues at H.C. Starck China

FY2021 NPAT Post-MI of

VND13,564bn86% growth over 2020

VND 3,070bn

Record production and revenuesat Masan Tungsten Company Vietnam (“MTC”)

VND196bna VND157bn improvement over last year


gagement we will continue to learn, develop, and contribute to the cre-ation of greater value.

At MHT, we provide a safe working environment for all employees and workers so that they can return home safe and healthy every day. In 2021, we strengthened Covid-19 preventative measures in order to maintain our business continuity and ensure the health and safety for employees with 1,396 employees vaccinated, 97.8% of whom got the second dose. Besides, 1,335 employees (100% of employees) were tested and given medical advice by the Clinic with 24-hour support. MTC Aqueous Film Forming Foam (AFFF) system has been approved by the Police Department of Fire Fighting and Rescue under the Ministry of Public Security.

The health and safety of all employees, including those employed by the company and external companies on the factory premises, is also a top priority for H.C. Starck Tungsten Powders. This is also documented by the certification of the Goslar and Ganzhou sites according to ISO 45001 "Management Systems for Safety and Health at Work"; the Sarnia site publishes an annual Toxic Reduction Public Summary under the Toxic Reduction Act and Ontario Regulation 455/09.

The decrease in the number of accidents shows that the measures derived in 2020 (e.g. "Way to Mindfulness" in Goslar or 3-minute safety training in every shift in Ganzhou) were implemented successfully. Nevertheless, 2021 was not a good year in terms of occupational safety. For the first time, we as H.C. Starck Tungsten Powders suffered two fatalities in Ganzhou. Both accidents happened in the dark on the way to work. Previously in 2020 we had raised the bad road conditions with the local authorities and urged our employees to drive carefully. We hope that the renewed information on the subject will help avoid such accidents in the future. In addition, all that remained was for us to provide all possible help to the two colleagues’ families. In Vietnam, a serious incident outside the plant site resulting in the loss of a worker in October 2021 also showed that efforts to strive for occupational safety are never enough. From these incidents, the Company has taken more stringent measures for both internal and external plant sites, outlining the orientations for its operation management, particularly for contractors and business partners, so as to meet production and workplace safety requirements.

In 2021, the Total Recordable Injuries Frequency Rate and Lost Time Injury Frequency Rate, per million man-hours worked at MHT were 1.64 (2020: 0.88) and 0.62 (2020: 0.00) respectively. For our HCS operations the Lost Time Injury Frequency Rate was 5.5 (2020:12.7). ChemiLytics recorded an LTIFR of 10.0 (2020: 10.3) with an accident in April.

In alignment with the theme “Environmental sustainable development is our passport to the future”, MHT continues to maintain and strength-en environmental governance, protection and sustainable develop-ment in the context of the prolonged Covid-19 pandemic.

In 2021, 78.5% of wastewater will be reused for production activities at Nui Phao mine. The company also reused 960,883 m3 of clean waste soil and rock from the mining to construct the tailing dam and other internal mines. At factories H.C. Starck Tungsten Powders in Germany, Canada and China, the waste generated in the production process is often rich in valuable materials (especially metals), which will be used as raw materials by another company. Therefore, the waste recycling rate of H.C. Starck Tungsten Powders in Germany, Canada and China are very high, reaching 75% in 2021.

H.C. Starck Tungsten Powders in Germany, Canada and China and MTC continue to maintain ISO 14001 certificates on environment. Our Goslar plant is certified to ISO 50001 - Energy Management Systems - demonstrating its commitment to continuous improvement in ener-gy-related performance.

In particular, starting with the Carbon neutrality objective set out by MHT in the Climate Policy, the Goslar site has switched its electrici-ty supply to so-called “green” electricity, thereby saving approximate-ly 6,300 tons of CO2 per year since 2021. The remaining sites also maintain greenhouse gases inventories, seek solutions to save energy, reduce greenhouse gases to contribute to the journey of carbon neu-trality – “net zero emissions” in the year 2045 under Climate Policy commitments.

MHT has maintained our range of community engagement activities including community development program and economic restoration – ongoing commitment with MHT’s pledge to the community, MHT contributed VND2,75 billion into 26 community development projects which directly and indirectly impact approximately 1,700 households, including 300 ethnic minority households and 276 vulnerable house-holds.

Public consultation and information disclosure has been a two-way communication channel between the Company and its stakeholders, especially the local community. The Community Relations team always actively cooperates with the Company’s relevant departments as well as external partners to promptly provide information and solve request of the local community. However, some community consultation activ-

FY2021 continues to record results from solutions towards sustainable development. Specifically, MHT achieved a record net revenue of VND 13,564 billion in fiscal year 2021, a significant 86% increase compared to VND 7,291 billion recorded in FY2020, EBITDA increased by 114% for FY2021, and the Company delivered an NPAT Post-MI profit of VND196 billion for FY2021, a VND157 billion increase compared to the previous year. Overall results for FY21 are in line with market guidance despite less than anticipated copper sales on the backdrop of improved fundamentals and demand in the Tungsten market. This result vindi-cates the effectiveness of the acquisition of H.C. Starck Tungsten Pow-ders, as HCS business significantly contributed to MHT's overall busi-ness results for FY2021 with EBITDA reaching 746 billion and NPAT Post-MI of VND181billion (including depreciation and amortization due to fair value adjustment from the acquisition). The improvement in fi-nancial indicators and the positive results from past decisions create a solid momentum for the future development of MHT.

SAFETY

ENVIRONMENT

COMMUNITY RELATIONS

FINANCE

At the end of 2021 we employed a total of 2,074 personnel across our global operations, spanning 7 countries.

In Vietnam, the number of employees were 1,454 with foreign experts accounting for 4% of our workforce, decreased by 1% as a result of im-proved training outcomes and operational efficiencies realized during the pandemic. In Germany, Canada, China, US, Japan, 620 employ-ees were employed. A global Human Resources Policy was developed and focused on shaping and leading the global workforce to create a safe, healthy, positive and harmonious work environment in which our employees can excel by unleashing their potential and achieving self-value.

Human resources training and sustainable development are always given top priority at Masan High-Tech Materials, on the basis of im-provement and transformation in training quality, talent recruitment, employment.

Depending on the nature of each subsidiary, training methods are cus-tomized to suit the actual conditions, making full use of available re-sources to train internally and proactively adapt to online training in a flexible manner, while improving performance of training activities, con-tributing to the development of the organization. We conducted more than 34,000 training man hours.

Despite the difficult condition during Covid-19 crisis, we were able to organize internal engagement activities in each company to enhance engagement, promote motivation and work life balance for employees.

In 2022, we will face numerous challenges in order to achieve the Company’s development goals. However, with MHT employees’ en-

WORKFORCE

In Vietnam at our NPMC operation we increased our production of tungsten, copper, and bismuth from the previous year. Acid grade flu-orspar production decreased by 2.3% from the previous year due to the mechanical failure of the fluorite feed thickener which negatively impacted both acid grade fluorite and tungsten recoveries, as well as decreased plant throughput for two months in the year. Overall, we treated 4.3% less ore in the year due to the thickener failure.

Sample submissions in our ChemiLytics analytical business increased 15% year-on-year due to increased operations of the 3 main customers accounting for 96% of revenue.

We highlighted below the significant outcomes delivered in 2021:

OPERATIONS

ities and number of visitors to the Company’s Information Center are still limited due to the impact of the Covid-19 pandemic. But the mech-anism of information disclosure is still maintained through the local in-formation board system and reflected and handled by phone.

In 2021, there were 992 information items published with 107 contents and 17 visitors to the Information Center. These are the company's attempts to improve communication, promote the company's positive image, and boost transparency for all stakeholders.


BOARD OF DIRECTORS ASSESSMENT REPORTThe Board of Directors (the “BOD”) of Masan High-Tech Materials Corporation (“MHT”) is honored to submit to shareholders the BOD’s Company’s 2021 performance assessment report.

BOD’s Assessment of the Company’s Performance

After two challenging years, 2021 marked the first of what we hope to be a bright sustained period of success for our company, shareholders and other associated stakeholders. It was also the first full year in which we started to see the positive impacts of the acquisition of the H.C. Starck business made in 2020.

To address the largest impact in 2021, the ongoing global Covid-19 pandemic. Throughout 2021 our management team, unions and employees re-mained focused on ensuring that the business was able to respond to any change in circumstance. It was with this resilience, dedication and resolve that MHT was able to achieve many records and awards across many areas of the business and as mentioned further throughout the remainder of this report. The BOD sincerely thanks these stakeholders for their ongoing support in these unprecedented times.

2021 saw records achieved in many areas and has helped lay the foundation for ongoing success into the future. The BOD remains focused on ongoing improvement across all areas of the business as we move into 2022 and beyond.

The result delivered in 2021 fundamentally supports the decision to move forward with the acquisition of the H.C. Starck Group GmbH (“HCS”) and the ChemiLytics GmbH analytical services businesses in 2020 despite economic circumstances at that time not being supportive of the acquisition. From a financial perspective, we achieved net revenue of VND13,564 billion, a significant increase of 86% as compared to 2020, thanks to the sig-nificant improvement in underlying economic factors of the markets in which we operate as well as full year consolidation of the HCS business as compared to seven months in 2020.

2021 NPAT Post-MI was VND196 billion, a VND1,455 billion improvement over last year’s Core NPAT Post-MI loss of VND 1,259 billion, which ex-cludes one-time gains/losses from goodwill impact relating to the purchase of the H.C. Starck’s global tungsten business (“HCS”).

MHT continues making significant tax contributions to both the Vietnamese State budget, and to the local economies surrounding each of our global operations. In Vietnam specifically, MHT has contributed significantly to the state budget and fulfilled its tax obligations and fee payment responsibil-ities to the state and provincial budget which amounted to VND1,142 billion for the 2021 year, including corporate income tax, personal income tax, royalty tax, etc.

MHT continues applying world-class standards and practices across all our businesses and areas relating to the community, health, environment, sustainability, and safety. In Vietnam the business continues to be recognized as a leader in sustainability and aims to meet all requirements of in-ternational sustainable business practices. In 2021 the HCS policy “Commitment to responsibility and sustainability – four principles of our success” and the corresponding MHT policy were also revised, aligning the sustainability approach across the entire business.

In Vietnam, we continue to be publicly recognized for our significant contributions to the community development initiatives and Corporate Social Responsibility in Thai Nguyen province. Specifically, being awarded Top 50 Excellent Enterprises in Vietnam, Top 50 Vietnam Best Growth 2021, Top 100 Vietnam Excellent Brands 2021, Top 100 Sustainable Development Enterprise in Vietnam (CSI).

The BOD has accomplished its duties in reviewing and approving the resolutions on the operation of the Company and its subsidiaries. In 2021, no members of the BOD received any remuneration for their duties as BOD’s members, nor have they incurred any expenses.

BOD’s Assessment of the Company Management Team Performance

The global Management Team continues to manage the Company in a manner deserving the BOD’s and shareholders on-going trust and support. The Chief Executive Officer and other managers fulfilled their duties and functions in 2021, and properly implemented all resolutions from the General Meetings of Shareholders.

BOD Plans and Directions

The company developed its Vision and Mission in 2020 following the acquisition of the HCS business.

Vision: To be the leading integrated supplier of high-tech advanced materials critical to global innovation.

Mission: We aim to be the partner of choice to high-tech industries where our products are a key component in evolving and shaping the future of our world. Through the application of our materials, we will create unparalleled solutions to drive innovation and productivity which will deliver superior outcomes for all our partners and stakeholders.

The vision and mission were reviewed by executive management and they remain unchanged in 2021, as they are still considered appropriate for our business at this time.

We have made significant gains in achieving the vision and mission throughout 2021 with the most significant being a number of large new customers being onboarded through our ability to provide total customer solutions with out Tungsten products through the HCS acquisition. We expect further gains to be made in this area in 2022.

Our research and development arm continues to focus on development of leading-edge technologies, with a number of new patents being lodged or in the process of being lodged and also commercialized. This investment in new technologies, people and processes will continue to enable our future growth and success.

We will also continue to promote and grow our own role in the circular economy through the adoption of “Reduce, Reuse & Recycle” philosophy; safe-guarding the ecosystems of our people, our environment, our stakeholders; and ensuring superior financial results on a long- term sustainable basis.

Given the foregoing, the BOD fully supports the Management Team’s efforts to continue to grow the company and deliver on the Vision and Mission, providing superior outcomes for all our partners and stakeholders, including you, our shareholders.


AUDIT COMMITTEE’S REVIEW OF THE COMPANY’S OPERATIONSReview on the Accounting and Financial Operations of the Company

The Audit Committee confirms that the financial figures presented in the report of the Board of Directors submitted to the 2021 Annual General Meetings of Shareholders are a fair reflection of the Company’s and its subsidiaries’ current financial situation.

The Group The Company

31/12/2021 1/1/2021 31/12/2021 1/1/2021

VND’000 VND’000 VND’000 VND’000

ASSETSCurrent assets 10,576,736,330 9,756,298,985 84,602,412 1,102,056,861

Cash and cash equivalents 1,043,789,572 761,930,286 5,600,363 51,739,750

Short-term financial investments 7,400,000 - - -

Accounts receivable – short-term 2,652,953,397 2,771,124,731 78,800,192 1,050,317,111

Inventories 5,930,372,391 4,880,128,480 - -

Other current assets 942,220,970 1,343,115,488 201,857 -

Long-term assets 28,774,460,852 30,352,548,829 15,181,439,646 14,156,476,389

Accounts receivable - long-term 1,344,574,789 1,298,310,451 3,000,000,000 2,000,000,000

Fixed assets 21,507,557,062 23,784,752,467 - -

Investment property 800,547,308 - - -

Long-term work in progress 1,157,484,188 1,467,480,229 24,963,257 -

Long-term financial investments 180,510,490 202,627,868 12,156,476,389 12,156,476,389

Other long-term assets 3,783,787,015 3,599,377,814 - -

TOTAL ASSETS 39,351,197,182 40,108,847,814 15,266,042,058 15,258,533,250

RESOURCESLIABILITIES 25,010,017,858 26,029,306,779 3,108,407,105 3,101,408,455

Current liabilities 7,877,179,852 7,508,154,152 108,407,105 1,101,408,455

Long-term liabilities 17,132,838,006 18,521,152,617 3,000,000,000 2,000,000,000

EQUITY 14,341,179,324 14,079,541,035 12,157,634,953 12,157,124,795

TOTAL RESOURCES 39,351,197,182 40,108,847,814 15,266,042,058 15,258,533,250

Part 1: Balance Sheet Key figures of the financial situation as of December 31, 2021:

Review on the Company’s Business PerformanceIn 2021, the Audit Committee did not find any abnormal signs in the Company’s business operations. All of business activities were conducted in compliance with the Company’s Charter, the Law on Enterprises and other relevant legal regulations.

Business performance results and accounting figures have been carefully checked to ensure the accuracy and legality of accounting books.

The Company fully observed all current legal regulations required for information disclosure to the stock market. Figures of business results as of December 31, 2021:

Part 2: Income statement

The Group The Company2021 2020 2021 2020

VND’000 VND’000 VND’000 VND’000

Net operating profit / (loss) 98,986,743 (1,366,388,336) 839,074 1,470,342

Results of other activities 57,529,171 1,270,177,497 - 501,547

Profit / (Loss) before tax 156,515,914 (96,210,839) 839,074 1,971,889

Income tax expense – current 59,707,083 20,654,658 328,916 (5,953,260)

Income tax benefits – deferred (164,314,798) (168,656,455) - -

Net profit after tax 261,123,629 51,790,958 510,158 7,925,149

Net profit attributable to:

Equity holders of the Company 195,611,320 39,195,963 510,158 7,925,149

Non-controlling interest 65,512,309 12,594,995 - -


Review on the Governance and Management

a. The Board of Directors:

The Audit Committee opines that the Board of Directors has fulfilled their management responsibilities in compliance with the Company’s Charter, the Resolutions of the General Meetings of Shareholders, the Law on En-terprises and other relevant legal regulations. The Board of Directors has duly executed all resolutions of the General Meetings of Shareholders in 2021.

The Board of Directors’ resolutions were issued in compliance with the legal authority of the Board of Directors and the contents of the resolu-tions were in compliance with the Company’s Charter, the resolutions of the General Meetings of Shareholders, the Law on Enterprises and other relevant legal regulations.

b. The Management Team

The Audit Committee opines that the Management Team has executed the Company’s business operations efficiently and in compliance with theBoard of Directors’ resolutions.

Conclusions

The Company’s operations in 2021 were in compliance with the Compa-ny’s Charter, the Law on Enterprises and other relevant legal regulations and based on the Resolutions of the General Meetings of Shareholders and of the Board of Directors.


CORPORATE GOVERNANCE REPORT

Activities of the General Meeting of Shareholders

Information on meetings and Resolutions/Decisions of the General Meeting of Shareholders (including the Resolutions of the General Meeting of Shareholders adopted in the form of collection of written opinions):

Resolution/Decision No. 149/2021/NQ-ĐHĐCD Date 04/12/2021Content

• Approve the Board of Directors’ assessment report for 2020;

• Approve the Supervisory Board’s report on the Company’s business results and performance results of the Board of Directors and the Chief Executive Officer in 2020;

• Approve the 2020 Financial Statements of the Company as audited by KPMG Company Limited;

• Approve the 2020 dividend distribution plan being no dividend distribution;

• Approve the 2021 business plan of the Company on a consolidated basis;

• Approve the selection of KPMG Company Limited as the auditing firm of the Company in 2021;

• Approve the change of organization and management structure of the Company;

• Approve the dismissal of all members of the Supervisory Board for the term 2016-2021 due to the change in organi-zation and management structure of the Company;

• Approve the new charter of the Company in accordance with the draft submitted to the 2021 Annual General Meeting of Shareholders as per the related Proposal of the Board of Directors;

• Approve the Internal Regulations on Corporate Governance in accordance with the draft submitted to the 2021 An-nual General Meeting of Shareholders as per the related Proposal of the Board of Directors;

• Approve the Working Regulation of the Board of Directors in accordance with the draft submitted to the 2021 Annual General Meeting of Shareholders as per the related Proposal of the Board of Directors;

• Approve the amount of remuneration, bonus, and other benefits for members of the Board of Directors in 2021 being VND 0 and projected budget plan for operational expenses of the Board of Directors in 2021 is not higher than VND 1 billion.

• Approve the transactions between the Company and its related parties;

• Approve the investment in, purchase of, and sale of bonds (including transactions on secondary market with respect to bonds issued by subsidiaries companies or affiliated companies within Masan Group), certificates of deposit, and other assets of which the value of each transaction is under the authorization of the General Meeting of Sharehold-ers as provided in the Charter and relevant laws (the “Investment Transactions”), and to authorize Chairman of the Board of Directors or the Chief Executive Officer to decide specific terms and conditions, sign and implement the Investment Transactions.

• Approve the plan for new shares offering of the Company and use of proceeds.

• Approve the maximum ratio of foreign ownership of the Company being 49%.

• Approve the number of members of the Board of Directors of the Company for the term 2021-2026 being 05 (five).

• Approve the list of elected members of the Board of Directors of the Company for the term 2021-2026.

The Board of Directors

Information about the members of the Board of Directors (BOD)

No. Member of the Board of Directors

Position ((independent member of the Board of Directors, non-executive member of the Board of Directors)

Day becoming/no longer independent member of the Board of Directors/Board of Directors

Date of appointment Date of dismissal

1 Mr. Danny Le Chairman (non-executive member) 19/04/2019

2 Mr. Nguyen Thieu Nam First Vice Chairman of the Board of Directors (non-executive member) 18/02/2013

3 Mr. Craig Richard Bradshaw Member of the Board of Directors(executive member) 19/04/2019

4 Mr. Akira Osada Member of the Board of Directors(non-executive member) 12/04/2021

5 Ms. Nguyen Thu Hien Member of the Board of Directors(independent member) 12/04/2021

6 Mr. Nguyen Van Thang Member of the Board of Directors(non-executive member) 19/04/2019 12/04/2021


Supervision by the BOD over the Management Team

• At the meetings of the BOD, the CEO reported the operations of the Company and the key operations of the Company’s subsidiaries;

• Supervising and directing the implementation of the investment plans of the Company and its subsidiaries;

• Implementing the tasks as delegated under the resolutions of the BOD.

Activities of the Board of Directors’ Committee

a. Activities of the Sustainability Committee

• Review and monitor the performance of the Company as it affects matters related to sustainability, the environment, communities and other key stakeholders.

• Review and provide guidance to management on sustainability issues and impacts and the integration of sustainability into Company’s business, including innovation, manufacturing and sourcing and operations.

• Review the activities of the Company’s community impact initiatives.

• Review and provide recommendations to management on reporting to shareholders and other communities regarding corporate responsibility activities;

• Review and provide guidance to management, and report to the Board regarding the involvement of signification corporate responsibility issues in major business decisions, in order to protect the Company’s valuable goodwill, and human and intellectual capital.

• Review and provide recommendations to the Board on any shareholder proposal that relates to the matters overseen by the committee;

• Oversee the management of risks related to sustainability, the environment, and the Company’s interactions with communities.

b. Activities of the Risk Committee

• Review and discuss with management and the Company’s independent auditor the Company’s quarterly financial statements.

• Assess compliance with the Company’s code of business practices and its code of conduct, and consider and (if appropriate) approve any waiver provided in the codes;

• Review periodically with management and the legal counsel the Company’s compliance with laws and regulations, including corporate securities trading policies, legal matters, litigation or any other contingency that could have a significant impact on the Company’s financial statements.

• Discuss with the Management Team the Company’s policies regarding risk assessment and risk management, and the steps the Management Team has undertaken to monitor and control them.

Resolutions of the Board of Directors

No. Resolution No. Date Content Percentage

1 010/2021/NQ-HĐQT 11/01/2021

- Approve the resignation of Mr. Dominic John Heaton from the Chairman of the Sustainability Committee from January 11, 2021

- Appoint Mr. Ashley James McAleese as a member and Chairman of the Sustainability Committee from January 11, 2021

100%

2 80/2021/NQ-HĐQT 03/10/2021

- Approve the convention of the 2021 Annual General Meeting of Shareholders of the Company- Approve the list of matters to be submitted for approval by the 2021 Annual General Meeting of

Shareholders of the Company- Authorize Mr. Danny Le - Chairman of the Board of Directors of the Company to decide and

perform some works related to the 2021 Annual General Meeting of Shareholders.

100%

3 151/2021/NQ-HĐQT 04/12/2021

- Approve the election of Mr. Danny Le as the Chairman of the Board of Directors for the term 2021-2026.

- Approve the election of Mr. Nguyen Thieu Nam as the First Vice Chairman of the Board of Directors for the term 2021-2026.

- Approve the appointment of members of the Audit Committee under the Board of Directors of the Company, comprising of Ms. Nguyen Thu Hien - Chairwoman and Mr. Nguyen Thieu Nam - Member

- Approve the working Regulation of the Company’s Audit Committee- Approve the appointment of Dr. Hady Seyeda as the Deputy Chief Executive Officer of the

Company

100%

4 383/2021/NQ-HĐQT 07/28/2021

- Approve the issuance of corporate bonds by the Company with a total maximum par value of VND 1,000,000,000,000 (one trillion VND) (“Bonds”).

- Approve security measures for the Bonds- Approve the transactions contemplated in, and the execution, delivery and performance

by the Company of, all agreements, contracts and other documents relating to the Bonds to which the Company is a party.

- Approve the authorization for the Board of Directors or the Chief Executive Officer or the Chief Financial Officer of the Company to decide and implement a number of contents related to the Bonds.

100%


No. Member of the Supervisory Board Position Day becoming/no longer mem-

ber of the Supervisory Board Qualification

1 Ms. Doan Thi My Duyen Head of Supervisory Board Started 30/09/2013, resigned 12/04/2021

Master of Accountancy - Uni-versity of Economics Ho Chi Minh City

2 Mr. Nguyen Quynh Lam Member of the Supervisory Board Started 22/04/2016, resigned 12/04/2021

Bachelor of Science in Mining Economics

3 Ms. Pham Quynh Nga Member of the Supervisory Board Started 20/04/2018, resigned 12/04/2021

Accounting/Auditing (Certified Public Accountant of Austra-lia)

No. Members of Audit Com-mittee Position Day becoming/no longer mem-

ber of the Audit Committee Qualification

1 Ms. Nguyen Thu Hien Chairwoman 12/04/2021

- Bachelor of Foreign Trade Economics, Foreign Trade University, Hanoi city

- Master of Business Admin-istration, Asian Institute of Management, Makati, Ma-nila, Philippines.

- International Internal Auditor, the Institute of Internal Au-ditors.

2 Mr. Nguyen Thieu Nam Member 12/04/2021 Bachelor of Commerce

Supervisory Board/ Audit Committee Information about members of Supervisory Board (by April 12th, 2021)/Audit Committee (from April 12th, 2021)

Surveillance activities of the Supervisory Board /Audit Committee toward the Board of Directors, Management Team and shareholders:

Surveillance activities of the Supervisory Board/Audit Committee toward the Board of Directors, Management Team and shareholders

• Supervising and reviewing the management and execution of 2021 business activities by the Board of Directors and the Man-agement Team.

• Reviewing and supervising the issuing of resolutions and deci-sions of the Board of Directors and the Management Team.

• Reviewing the reasonableness, legality, honesty and diligence in implementing accounting operations and forming financial state-ments.

• Supervising the accuracy of the financial statements of the Com-pany and making official disclosures related to the Company’s financial performance.

• Reviewing transactions with affiliated persons subject to approval by the Board of Directors or the General Meeting of Sharehold-ers and providing recommendations on transactions requiring ap-proval of the Board of Directors or the General Meeting of Share-holders.

The coordination among the Supervisory Board/Audit Committee with the Board of Directors, Management Team and other man-agers

• Attending and providing comments at meetings of the BOD• Supervising the implementation of the resolutions of the General

Meeting of Shareholders and the BOD passed in 2021.• Supervising compliance with regulations of the Law on Enterpris-

es, the Law on Securities, the Company Charter, the resolutions of the General Meeting of Shareholders regarding the administra-tion and management of the Company’s business activities.

• Reviewing financial statements of 2021.

Other activities of the Supervisory Board/Audit Committee (if any): NoneTraining on Corporate governance: None


Transactions of affiliated person of the Company with the CompanyTransactions between the company and the affiliated persons or between the Company and major shareholders, internal persons and related per-sons of internal persons.

No.Name of organi-zation/individual

Relation-ship with the Com-pany

ID/Registration number*, date of issue, place of issue

Head office address/ contact address

Trans-action time with the compa-ny

Resolution/Decision Number passed by the General Meeting of Shareholders/Board of Directors, etc. (if any, specify the date of issue)

Note

1Masan Tungsten Limited Liability Company

Subsidiary4601163743 issued on 15 January 2014 in Thai Nguyen

Hamlet 2, Ha Thuong commune, Dai Tu district, Thai Nguyen province

2021149/2021/NQ-ĐHĐCD dated 12 April 2021

MHT’s income from business cooperation agreement


Subsidiary 4601163743 issued on 15 January 2014 in Thai Nguyen



MHT’s income from back-charge


Subsidiary4601163743 issued on 15 January 2014 in Thai Nguyen



Loan granted by MTC to MHT

4Nui Phao Mining Company Limited

Subsidiary4600864513 issued on 5 July 2010 in Thai Nguyen

Hamlet 2 Ha Thuong commune, Dai Tu district, Thai Nguyen province, Vietnam


NPM’s income from back-charge



Hamlet 2, Ha Thuong commune, Dai Tu district, Thai Nguyen province, Vietnam


MHT’s income from business cooperation agreement



Hamlet 2, Ha Thuong commune, Dai Tu district, Thai Nguyen province, Vietnam



Transaction between internal persons of the Company, related persons of internal persons and the Company’s subsidiaries in which the Company takes controlling power:

No. Person executing transaction Relationship with the internal person

Name of the subsidiary, company in which listed company takes controlling power

Transaction time Note


Related person of the internal person

Masan Tungsten Limited Liability Company

2021NPM’s sale of goods(TC/HG)




2021NPM’s income fromback-charge




2021Loan granted by NPM to MTC




2021NPM’s income from land sub-lease to MTC



H.C. Starck Tungsten GmbH 2021NPM’s sale of goods(APT/BTO/YTO) toH.C. Starck GmbH

6 Masan Consumer CorporationRelated person of the internal person

Nui Phao Mining Company Limited 2021 Sale of goods to NPM

7 Masan Consumer CorporationRelated person of the internal person

Nui Phao Mining Company Limited 2021Provision of services to NPM


No. Person executing transaction Relationship with the internal person

Name of the subsidiary, company in which listed company takes controlling power

Transaction time Note



Nui Phao Mining Company Limited 2021MTC’s sale of goods(APT/BTO/YTO) to NPM



H.C. Starck Tungsten GmbH 2021MTC’s sale of goods(APT/BTO/YTO)



H.C. Starck Tungsten LLC (USA) 2021MTC’s sale of goods(APT/BTO/YTO)



H.C. Starck Canada Inc. 2021MTC’s sale of goods (APT/BTO/YTO), with total value of: VND 22,663,495,583

12 H.C. Starck Tungsten GmbHRelated person of the internal person


2021H.C. Starck TungstenGmbH’s sale of goods (TC/Scrap) to MTC

13 H.C. Starck Tungsten GmbHRelated person of the internal person


2021H.C. Starck Tungsten GmbH’s income from back-charge


Transactions between the Company and other objectsTransactions between the Company and companies that members of the Board of Directors, members of the Supervisory Board, Audit Committee, or the CEO of the Company is or was a founding member, members of the Board of Directors, or the CEO of those companies (the “Related persons”) in the last three (03) years (as at the time of reporting).

YearRelated person (having

transactions withthe Company)

Relationship with the Company Description of transaction

2018Nui Phao Mining Company Limited (NPMC)

BOD member of the Company is also an MC member of the related person

Business Cooperation Agreement






Guarantee for payment obligations of MTC relating to the credit facility limit and foreign exchange trans-actions between MTC and at BNP Paribas, Ho Chi Minh Branch and BNP Paribas, Hanoi Branch

2020 Nui Phao Mining Company LimitedBOD member of the Company is also an MC member of the related person

Guarantee for obligations of NPM relating to the Termination Agreement with 5N Plus Inc and 5N Plus Asia Limited


Guarantee for obligations of NPM relating to the Prepayment Agreement with Traxys Europe S.A.



Guarantee for payment obligation of MTC relating to the credit limits between MTC and Vietnam Prosperi-ty Joint Stock Commercial Bank













Loan granted by MTC to MHT


NPM’s income from back-charge

Transactions between the Company and the company that the related persons of members of Board of Directors, members of the Supervisory Board, Audit Committee, Director (CEO) as a member of Board of Directors, Director (CEO): None

Other transactions of the Company (if any) that may be beneficial material or immaterial for members of the Board of Directors, members of the Supervisory Board, Audit Committee, Director (CEO): None

SHARE TRANSACTIONS OF INTERNAL PERSONS AND RELATED PERSON OF INTERNAL PERSONTransactions of internal persons and affiliated persons on shares of the listed company: Mr. Craig Richard Bradshaw - Member of the Board of Directors - CEO successfully completed a sale of 3,000,000 shares in January 2021.

OTHER SIGNIFICANT MATTERSAs for list of affiliated persons and related benefits, please refer to Report on Corporate Governance for 2021 as announced on website of the Company.

Chairman and CEO of Masan Group visited H.C. Starck’s Goslar site


RISK MANAGEMENT

MHT RISK MANAGEMENT

At MHT, management of risk is an integral part of the comprehensive, organization wide sys-tem of corporate governance and a success factor for sustainably securing and increasing the value of the company. MHT is committed to maintain risk management processes in relation to international best practice and all applicable aspects of law.

The risks identified under a risk assessment process may represent material risks for MHT which, if they materialize, could have adverse effects on products, processes, and stake-holders inclusive of shareholders, and there-fore robust management of risk remains inte-gral to the MHT way of doing business.

MHT seeks to embed risk management into the critical business activities, functions, pro-cesses, and systems of its assets through the following mechanisms:

1. Risk assessmentsEach business unit and MHT function conducts a detailed risk assessment on all the ma-terial risks to understand their potential causes and impacts, then develop and monitor mitigating controls to reduce the likelihood of a risk event occurring and/or its potential impacts if it were to occur.

2. Risk reportingBusiness-wide MHT has systems in place to ensure all the identified material risks which have potential to affect the short-term and long-term business plans of MHT are reported to the management in a timely manner. The materiality of the risks is assessed on the basis of financial and non-financial impacts including but not limited to sustainability, community, health, safety, environment, security, reputational and legal impacts.

We apply established processes when commencing new activities or making changes to established practices including risk assessments and supporting risk management plans to ensure potential business conduct. Issues related to corruption, statutory complianc-es, reputational risk, and legal exposures are diligently reported and actioned to ensure business continuity and growth consistent with the long-term vision of the organization.

3. Risk controlsControls are in place for all the identified risks and are managed at the functional level across the MHT business units. Besides this, the preventive and mitigating controls are audited regularly for their effectiveness and improvement plans implemented as and when required.

The MHT Board has carried out a robust assessment of MHT’s princi-pal risks, including those that could threaten the business model, future performance, reputation, solvency, or liquidity over the next three-year period.

The Directors believe a three-year period is the appropriate period con-sidering the following reasons:

MHT has an annual budget, a three-year plan, and a longer-term out-look. MHT considers the three-year period to be the appropriate bal-ance between long-term and short-term performance drivers.

Though our relevant commodity prices, currency exchange rates and interest rates volatility have material bearing on MHT’s annual bud-get, the three-year plan and longer term outlook, based on current commodity prices and macroeconomic indicators forecasts, sensitivi-ty analyses, the latest funding and liquidity update, maturity profile of MHT’s existing short-term and long-term debt, MHT’s risk profile and the controls and mitigation measures in place should the particular risks materialize; the regular Board strategic and capital expenditure review discussions and review of MHT’s mineral assets’ life, the Direc-tors have a reasonable expectation that MHT will be able to continue its operations and meet its liabilities as they fall due.

Fluctuations in commodity prices (including sustained price shifts) and impacts of ongoing global economic volatility may negatively affect our results, including cash flows and asset val-ues.

The prices we obtain for our minerals, chemicals, powders, and car-bides are influenced or linked to global commodity markets which have historically been subject to significant volatility. Our policy is to sell our products in a mix of long-term and short-term contracts linked to the prevailing market prices. The diversity provided by our relatively broad portfolio of products does not necessarily insulate MHT from the vaga-

Principal risks

Risk factors

Robust risk assessment statement

External risks

For information on our principal risks, please refer below. ries of price changes. Fluctuations in the commodity prices can occur due to price shifts reflecting underlying global economic and geopoliti-cal factors, industry demand, increased supply due to the development of new productive resources or increased production from the existing resources, technological changes, product substitution and national tariffs. We are particularly exposed to price movements in tungsten, fluorspar, copper and bismuth.

Volatility in global economic growth, particularly due to the continuing Covid-19 pandemic, continuing trade tensions resulting in redirection of trade flows has the potential to adversely affect future demand and prices for our commodities and industrial products. On-going geopolit-ical uncertainties and market-based protectionism have the potential to inhibit international trade and weigh on business confidence, which may create the risk of further constraints on our ability to trade in cer-tain markets and have the potential to increase price volatility. The im-pact of sustained price shifts and short-term price volatility, including the impacts of the rising inflation and gradual windup of the monetary stimulus program by the global central banks, create the risk that our financial and operating results, including cash flows and asset values, might be materially affected.

Our financial results may be negatively affected by exchange rate fluctuations

The geographic diversity of the countries in which our assets are lo-cated means that our assets, earnings, and cash flows are influenced by a variety of currencies. Fluctuations in the exchange rates of those currencies may have a significant impact on our financial results. The Vietnamese Dong, US Dollar, Euro, Canadian Dollar, Chinese Yuan and Japanese Yen are the currencies in which the majority of our sales would be denominated, while we present our financial performance in Vietnamese Dong only. Operating costs are influenced by the curren-cies of those countries where our assets and facilities are located and by those currencies in which the costs of labor, imported equipment and services are determined.

Business framework impacted by political, judicial, regulatory and climate change, or alleged compliance issues within the countries in which we operate or assets in which we have an interest could have a negative impact on our business.

Risks in the locations in which we have operating assets could include terrorism, civil unrest, judicial activism, regulatory investigation or inqui-ry, nationalization, protectionism, renegotiation or nullification of exist-ing contracts, leases, permits or other agreements, imposts, controls or prohibitions on the production or use of certain products, restrictions


on repatriation of earnings or capital and changes in laws and policy, as well as other unforeseeable risks. Risks relating to bribery and corrup-tion, including possible delays or disruption resulting from a refusal to make so-called facilitation payments, may be prevalent in some of the countries where our assets are located. If any of our operating assets are affected by one or more of these risks, it could have a material ad-verse effect on MHT’s overall operating results, financial condition, and prospects. Our governance and compliance processes (which include the review of internal controls over financial reporting and specific inter-nal controls in relation to competition, data protection and privacy, of-fers of anything of value to government officials and representatives of state-owned enterprises and disclosure of state or commercial secrets) may not operate to identify financial misstatements or prevent poten-tial breaches of law, or of accounting or governance practice. Our Code of Conduct, together with our policies such as the anti-corruption, and competition policies, may not prevent instances of fraudulent behavior and dishonesty nor guarantee compliance with legal or regulatory re-quirements. This may lead to regulatory fines, loss of profits, litigation, allegations or investigations by regulatory authorities, loss of operating licenses and/ or reputational damage.

Our operating assets are based on material long-term investments that are dependent on long-term fiscal stability and could be adversely affected by changes in fiscal legislation, changes in interpretation of fiscal legislation, periodic challenges and disagreements with tax au-thorities and legal proceedings relating to fiscal matters. The natural resources industry continues to be regarded as a source of tax revenue and can also be adversely affected by broader fiscal measures apply-ing to businesses generally. MHT is currently involved in a number of uncertain tax and royalty matters within Vietnam.

Our business is affected by new and evolving government regulations and international standards, such as controls on imports, exports, pric-es, compliances, greenhouse gas emissions, unforeseen closure and site rehabilitation expenses. The nature of the industries in which we operate means many of our activities are highly regulated by laws relat-ing to community, health, environment, and safety impacts. Increasing requirements relating to regulatory, community, health, environment and safety approvals can potentially result in significant delays or inter-ruptions and may adversely affect the economics of new development, the expansion of existing assets and operations and the performance of our operating assets. As regulatory standards and expectations are constantly developing, we may be exposed to increased regulation and compliance costs to meet new operating and reporting standards, as well as unforeseen closure and site rehabilitation expenses.

Infrastructure, such as rail, ports, power, and water, is critical to our business operations. The impact of climate change may increase com-

petition for, and the regulation of, limited resources, such as power and water. These factors could materially and adversely affect the expan-sion of our business and ability of our assets to operate efficiently.

New or evolving regulations and international standards can be difficult to predict, difficult to influence, and complex to understand. Potential compliance costs, litigation expenses, regulatory delays, rehabilitation expenses and operational impacts and costs arising from government action, court decisions, regulatory change and evolving standards could materially and adversely affect MHT’s future results, prospects and our financial condition.

Failure to discover or acquire new resources, maintain reserves or develop new assets could negatively affect our future results and financial condition.

The demand for our products and production from our assets results in existing reserves being depleted over time. As our revenues and profits are derived in part from our minerals, our future results and fi-nancial condition are directly related to the success of our exploration and acquisition efforts, and our ability to generate reserves to meet our future production requirements at a competitive cost. Exploration activity occurs adjacent to our established asset. These activities may increase land tenure, infrastructure and related political risks. A failure in our ability to discover or acquire new resources, maintain reserves, maintain our scrap collection supply chain, or develop new assets, or operations in sufficient quantities to maintain or grow the current level of our reserves could negatively affect our future results, financial con-dition and prospects. Deterioration in commodities pricing may make some existing reserves uneconomic. Our actual exploration drilling activities and future drilling budget will depend on our resource and reserve inventory size and quality, drilling results, commodity prices, drilling and production costs, lease expirations, land access, roads and other infrastructure constraints, regulatory approvals and other factors.

There are numerous uncertainties inherent in estimating mineral re-serves. Geological assumptions about our mineralization that are valid at the time of estimation may change significantly when new informa-tion becomes available. Estimates of reserves that will be recovered, or the cost at which we anticipate reserves will be recovered, are based on uncertain assumptions. The uncertain global financial outlook may affect economic assumptions related to reserve recovery and may re-quire reserve restatements. Changes to reserve estimates could affect our asset carrying values and may also negatively impact our future financial condition and results.

Business risks

Potential changes to our portfolio of assets through merger, acquisition and divestment activity may have a material adverse effect on our future results and financial condition

There are several potential risks associated with acquisitions (or divestments). These include:

• loss of value from a poor investment decision or from a missed investment opportunity,• adverse market reaction to the basis/timing/terms on which changes are made,• the imposition of adverse regulatory conditions and obligations,• commercial objectives not being achieved as expected,• unforeseen liabilities arising from changes to the portfolio,• sales revenues and operational performance not meeting our expectations,• anticipated synergies or cost savings being delayed or not being achieved, and• inability to retain key staff and transaction-related costs being more than anticipated.

Increased costs and schedule delays may adversely affect our capital development projects

Although we dedicate significant time, effort, and resources to our project planning, review and approval processes, some of our development projects are highly complex and rely on the factors that are outside our control, which may cause us to underestimate the cost or time required to complete a project. For instance, incidents or unexpected conditions encountered during development projects may cause setbacks or cost overruns, required licenses, permits or authorizations to build a project may be unobtainable at anticipated costs, or may be obtained only after significant delay and market conditions may change, thereby making a project less profitable than initially projected.

In addition, we may fail to develop and manage projects as effectively as we anticipate due to both foresee-able and unforeseen challenges that may emerge.

Any of these may result in increased capital costs and schedule delays at our development projects and materially and adversely affect anticipated financial returns.


If our liquidity, or cash flow deteriorate significantly, it may ad-versely affect our ability to fund our major capital programs

We seek to maintain a strong balance sheet. However, fluctuations in commodity prices and ongoing global economic volatility could mate-rially and adversely affect our future cash flows and ability to access capital from financial markets at acceptable pricing. If our key financial ratios and credit ratings are not maintained, our liquidity and cash re-serves, interest rate costs on borrowed debt, future access to financial capital markets and the ability to fund current and future major capital projects could be adversely affected.

The commercial counterparties with whom we transact may not meet their obligations, which may negatively affect our results

We contract with many commercial and financial counterparties, includ-ing end-customers, suppliers and financial institutions in the context of global financial markets that remain volatile. We maintain a single book approach with commercial counterparties to make sure all credit ex-posures are quantified and assessed consistently. However, our exist-ing counterparty credit controls may not prevent a material loss due to credit exposure to a major customer segment or financial counterparty. In addition, customers, suppliers, or contractors may fail to perform against existing contracts and obligations and could negatively affect our financial condition and results of assets.

Operational risksUnexpected natural and operational catastrophes may adversely impact our assets, functions, or people

We have production assets in several geographic locations. Our op-erational processes may be subject to operational accidents, such as fires, gas leaks, road and vehicle incidents, port and shipping incidents, aircraft incidents, open-cut pit wall or tailings/waste storage facility fail-ures, loss of power supply, environmental pollution, mechanical criti-cal equipment failures, and cyber or conventional security attacks on MHT’s infrastructure. If an operational crisis occurs, the failure to pro-vide adequate communications response to our external stakeholders could result in Group-wide reputational damage.

Our minerals asset may also be subject to unexpected natural ca-tastrophes, such as earthquakes, floods and typhoons.

Financial risks We operate corporate offices and operations globally. A serious natural pandemic, civil unrest, terror or criminal event in any or all of these locations could have an impact on the services provided to the Group and on our people and the local community.

Based on our risk management and the limited value of external in-surance in the natural resource sector, our risk financing (insurance) approach is to purchase external insurance for certain risks, including property damage and business interruption, sabotage and terrorism, marine cargo, construction, primary public liability and employee health benefits. Existing business continuity plans may not provide protection for all the costs that arise from such events, including clean-up costs, litigation, and other claims. The impact of these events could lead to disruptions in production, increased costs, and loss of facilities. Where external insurance cover is purchased, third party claims arising from these events may exceed the limit of liability of the insurance policies we have in place. Additionally, any uninsured or underinsured losses could have a material adverse effect on our financial position or results of assets.

Information technology and operational technology services are subject to cybersecurity risks and threats that may materially af-fect our business and reputation

Our strategy of owning and operating, long-life and low-cost assets is underpinned by our ability to become fully integrated and highly auto-mated, from resource to end-use customer and the market. Our busi-ness and operational processes are heavily dependent on traditional and emerging technologies to improve safety, lower cost and unlock value.

Increases in the frequency and magnitude of global cyber events pose potential increased risk of sensitive information being compromised, as well as unplanned and/or extended outages to our systems and networks. These events may include (but are not limited to) exploitation of system vulnerabilities, malware, phishing, and other sophisticated cyber-attacks, and other incidents, for example, due to human error. Such events may result in misappropriation of funds, a negative impact on asset productivity, negative health and safety impacts, environmen-tal damage, poor product quality, loss of intellectual property, disclo-sure of commercially or personally sensitive information, regulatory fines and/ or other costs and reputational damage.

As Masan High-Tech Materials continues successfully realizing its growth strategy, its more prominent global profile and increased online presence will likely make a more attractive target for cyber security attack.

Despite our on-going reasonable attempts to protect us from cyber events, we may be vulnerable to targeted and non-targeted cyber- at-tacks. In FY2021, we did not detect any cyber events that led to a significant breach of our business-critical technology environment or a material disclosure of market-sensitive information.

Cost pressures and reduced productivity could negatively impact our operating margins and expansion plans

Cost pressures continue to occur across industry. As the prices for our products are influenced and driven by the global commodity markets, we have limited ability to offset these cost pressures through corre-sponding price increases, which can adversely affect our operating margins. Although our efforts to reduce costs and several key cost in-puts are commodity price-linked, the inability to reduce costs and a timing lag could materially and adversely impact our operating margins for an extended period.

Besides secular rise in the costs, MHT’s earnings could be materially and adversely affected by disruption in supply of key raw materials, reagents, and consumables. These could include the unavailability of energy, fuel, or water due to various reasons, including fluctuations in climate, inadequate infrastructure capacity, interruptions in supply due to equipment failure or other causes and the inability to extend supply contracts on economic terms.

Broadly, cost and productivity pressures on MHT and our contractors and sub-contractors may increase the risk of industrial action and em-ployment litigation. These factors could lead to increased operating costs at existing assets, interruptions or delays and could negatively impact our operating margins and expansion plans.

Commercial counterparties have their own management and op-erating standards may take action contrary to our standards or fail to adopt or comply with standards equivalent to MHT’s standards.

Commercial counterparties, such as our suppliers, contractors and customers, may not comply with our internal CHESS standards or oth-er standards we apply causing adverse reputational and legal impacts.

46 Masan High-Tech Materials Business Operation Report 47

Community, Health, Environmental and Safety impacts, incidents, or accidents may adversely affect our people, assets and reputation or license to operate.

Sustainability risks

The physical and non-physical impacts of climate change may affect our assets, productivity, and the markets in which we sell our products. This includes acute and chronic changes in weather patterns, policy and regulatory change, technological development and market and economic responses. Fossil fuel-related emissions are a significant source of greenhouse gases contributing to climate change. We use fossil fuels in our mining and processing operations either directly or through the purchase of fossil fuel-based utilities and consumables such as electricity, reagents, etc.

Globally most national governments have already introduced, or are contemplating the introduction of, regula-tory responses to greenhouse gas emissions, including the extraction and combustion of fossil fuels to address the impacts of climate change. This includes all countries where we have assets including Vietnam, Germany, Canada, China, North America and Japan. In addition, the international community completed a global climate agreement at the 21st Conference of the Parties (COP21) in Paris in December 2015. The absence of regulatory certainty, global policy inconsistencies and the challenges associated in managing our diversified businesses portfolio across a variety of regulatory frameworks have the potential to adversely affect our assets and supply chain. These proposed regulatory mechanisms may adversely affect our assets directly, or indirectly through our suppliers and customers. Assessments of the potential impact of future climate change regulation are uncertain given the wide scope of potential regulatory change in the many countries in which we do business. Neverthe-less, we have developed a climate policy that will lead us to climate neutrality according to the Green House Gas (GHG) Protocol by 2045 while at the same time taking into account all the local requirements.

The physical effects of climate change on our assets may include changes in rainfall patterns, water shortages, rising sea levels, increased storm intensities and higher temperatures. These effects could materially and ad-versely affect the financial performance of our assets.

Our assets and activities may directly impact communities and risk the potential for adverse impacts on human rights or breaches of other international laws or conventions.

Local communities may become dissatisfied with our operations or oppose our new development projects, in-cluding through legal action, leading to potential schedule delay, increased costs, and reduced production. Com-munity-related risks may include community protests or civil unrest, adverse human rights impacts, community health and safety complaints and grievances, shareholder activism and civil society activism. In extreme cases the risks may affect viability, adversely impacting our reputation and license to operate.

Community

Climate change

Our processes are mandated and governed by the global standards and supporting strategies and frameworks. A failure to maintain effective global frameworks and associated controls may lead to a major health, safety, or environmental incident.

Potential safety events that may have a material adverse impact on our people, assets, reputation, or license to operate include fire, explosion, or rock fall incidents, road incidents involving buses and light vehicles, incidents between light vehicles and mobile mining equipment, shipping or vessel incidents, ground control failures, uncontrolled tailings containment breaches, gas leaks and accidents involving inadequate isolation, working from heights or lifting operations.

Our employees, contractors and third parties may be subjected to safety risks when travelling to and from sites or while onsite at an asset or corporate office.

Our assets by their nature have the potential to adversely impact air quality, biodiversity, water resources and related ecosystem services. Changes in scientific understanding of these impacts, regulatory requirements or stakeholder expectations may prevent, delay or reverse project approvals and result in increased costs for mitigation, offsets, or compensatory actions.

Environmental incidents, historical and present and future, have the potential to lead to material adverse im-pacts on our people, communities, assets, reputation, or license to operate. These include uncontrolled tailings containment breaches and escape of polluting substances.

We provide for operational closure and site rehabilitation. Our operating mining facilities are required to have closure plans. Changes in regulatory or community expectations may result in the relevant plans not being adequate. This may increase financial provisioning and costs at the affected assets.

Health risks faced include age, fatigue, musculoskeletal illnesses and occupational exposure to substances or agents, including noise, silica, diesel exhaust particulate, cobalt, nickel and sulphuric acid mist, radiation and mental illness. Longer-term health impacts may arise due to unanticipated workplace exposures or historical exposures of our workforce or communities to hazardous substances. These effects may create future financial compensation obligations, adversely impact our people, reputation, regulatory approvals, or license to operate and affect the way we conduct our assets.

Given the global location of our assets, we could be affected by a public health emergency such as Covid-19, influenza, dengue, or other infectious disease outbreaks in any of the regions in which our assets are located. Specifically, the company continues to update enacted response plans to manage the situation at its global operations with regards the Covid-19 pandemic.

Health

Environment

Safety

Governance and compliance

48 Masan High-Tech Materials Business Operation Report 49

Management of Principal Risks

External risks

Businessrisks

Financialrisks

The scope of our operations and the industries in which we operate and engage mean that a range of factors may impact our results. Principal risks that could negatively affect our results and performance along with our approach to managing and mitigating these risks is outlined below.

Risks arise from fluctuations in commodity prices and demand in major markets or changes in currency exchange rates, inter-est rates and actions by govern-ments, including new regulations and standards, alleged compli-ance breaches, pandemic, and political events that impact long-term fiscal stability.

Risks include the inherent uncer-tainty of identifying and proving reserves, adding assets and man-aging our capital development projects.

Continued volatility in global financial markets may adversely impact future cash flows, our ability to adequately access and source capital from finan-cial markets and our credit rating. Vol-atility may impact planned expendi-tures, as well as the ability to recover investments in mining manufacturing projects. In addition, the commercial counterparties (customers, suppliers, contractors, and financial institutions) we transact with may, due to adverse market conditions, fail to meet their contractual obligations.

The diversification of our portfolio of commodities, markets, geographies, and currencies is a key strategy for reducing the effects of volatility. The Risk & Audit Committee oversees these risks as described in sections Risk Manage-ment and Principal Risks. We also engage with governments and other key stakeholders to make sure the potential adverse impacts of proposed fiscal, tax, investment, infrastructure access, regulatory changes and evolving local and international standards are understood and, where possible, mitigated.

Our Code of Conduct set out requirements related to working with integrity, including dealings with government officials and third parties. Processes and controls are in place for the internal control over financial reporting. The Legal function oversees our compliance with securities dealing obligations and con-tinuous and periodic disclosure obligations.

Our use of qualified 3rd parties helps us to manage the technical integrity and provide assurance for our Mineral Resource development and Ore Reserves reporting, along with meeting audit and specialist needs.

We have established investment approval and monitoring processes applica-ble to all investment decisions, including mergers and acquisitions activities. An internal investment committee oversees these. Our capital expenditure request framework provides the structure and governance for adding growth options to our portfolio.

The operating model is being redesigned to deliver a simple and scalable MHT, providing a competitive advantage through defining work, organizational and performance measurements. Defined global business processes, includ-ing SAP, will provide an enterprise way of working across MHT.

Common processes generate useful data and improve operating discipline. Global sourcing arrangements are being established to ensure continuity of supply and competitive costs for key supply inputs.

From an industrial relations perspective, detailed planning was undertaken to support the on-going integration of the HCS business into MHT.

From sustainability risk perspective, the projects function aims to make sure our projects are safe, predictable, and competitive.

We seek to maintain a strong balance sheet, supported by our portfolio risk management strategy. As part of this strategy, the diversification of our portfolio reduces overall cash flow volatility. We use regular cash flow analysis to monitor volatilities and key financial ratios. Credit limits and review controls are estab-lished for all customers and financial counterparties.

Principal risk

Principal risk

Mitigation approach

Mitigation approach

Operational risks

Unexpected natural and operational catastrophes may adversely affect our assets. Information technology and operational technology services are subject to cybersecurity risks and threats that may materially affect our business and reputation. Operating cost pressures and reduced produc-tivity could negatively affect operat-ing margins and expansion plans.

By applying our risk management processes, we seek to identify catastrophic operational risks and implement the critical controls and performance require-ments to maintain control effectiveness. Business continuity plans and crisis and emergency management plans are established to mitigate consequences. Consistent with our risk management approach, we continue to be largely 3rd party insured for losses arising from property damage, business interruption and construction.

Given we rely heavily on information technology and operational technology to operate assets, we employ several measures to protect, detect and respond to cyber events. An enterprise-wide cyber risk management strategy is evolving to address how we maintain the security of our technology assets that support our operations across the globe. This strategy will include activities to be under-taken, including employee cybersecurity awareness and training, monitoring of our enterprise and operational technology networks, vulnerability identification and remediation activities, secure-by-design architecture and processes for the management of 3rd party technology risks. When incidents occur, they are in-vestigated through root-cause analysis and, as required, follow-up actions are undertaken.

The Board receives periodic updates on cyber risk management activities, including relevant information on any significant cyber incidents that have oc-curred.

We aim to maintain adequate operating margins through our strategic objective to position MHT to match our values, capabilities and competitive resources to the evolving needs of markets, to create sustainable long-term value for share-holders and other stakeholders.


Principal risk Mitigation approach

Our concentrated effort to reduce operating costs and drive productivity improve-ments has realized tangible results, with a reduction in controllable costs.

The capability to sustain productivity improvements is being further enhanced through continued refinements to our operating model. The operating model is being redesigned to deliver a simple and scalable MHT, providing a competitive advantage through defining work, organizational and performance measurements. Defined global business processes, including SAP, will provide an enterprise way of working across MHT. Common processes generate useful data and improve op-erating discipline. Global sourcing arrangements are being established to ensure continuity of supply and competitive costs for key supply inputs.

From an industrial relations perspective, detailed planning was undertaken to sup-port the on-going integration of the HCS business into MHT.

CHESS incidents or accidents may adversely affect people or neighboring communities, assets, reputation and our li-cense to operate. The potential physical impacts and related responses to climate change may impact the value of MHT, our assets and markets.

Sustainability risks

Our approach to sustainability risks is best reflected in the Sustainability part of this annual integrated report. The standards set out Group-wide CHESS-related performance requirements designed to support effective management control of these risks. The global CHESS planning process will look to identify gaps in these standards and inform global improvements to the CHESS framework.

Our approach to corporate planning, investment decision-making and business management provides a focus on the identification, assessment, and management of climate change risks. Through a comprehensive and strategic approach to cor-porate planning, we use scenarios to assess our portfolio.

Our approach to engagement with community stakeholders is also outlined in this integrated report.

We seek to conduct internal audits to test compliance with our standards and de-velop action plans to address any gaps. Key findings are reported to senior man-agement and reports are considered by the Board Sustainability committee.


Risk management at HCS and Chemilytics is done in the process of context analysis in accordance with the ISO standards to which we are certified. We derive appropriate measures from the risks and opportunities identified in the context analysis, which are also reflected in our targets.

HCS RISK MANAGEMENT

Sustainability Framework

Improved Sustainability Governance Structure

Energy Management Committee

Sustainability Innovation

Sustainability Mining & Raw Materials

Sustainability Processing

Sustainability Supply Chain Management

Sustainability Human Resources

Sustainability Health & Safety

Sustainability Environment

Sustainability Community

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64

68

82

88

96

104

122

142

160

SUSTAINABILITYPERFORMANCE

REPORT

Sustainability Performance Report 55

SUSTAINABILITY FRAMEWORKMasan High-Tech Materials are committed to compliance with interna-tional standards of corporate governance for the sustainable and long-term development of the Company. Therefore, the company and its subsidiaries are all developed in a manner that complies with the local regulatory requirements and World Bank guidelines/policies on social and environmental safeguards, the IFC Sustainability Framework and the Sustainable Development Framework issued by the ICMM for the mining and high-tech materials sector. We do so by integrating these practices into all our business areas towards the highest standards of transparency and consistency.

The sustainability framework makes our approach more effective by enabling us to benchmark our performance and continuously improve our sustainability initiatives. Our core values govern our approach, meaning that we place equal importance on investor returns, people and community, the environment and sound governance that adheres to our ethics.

At the highest level, policies are designed to define the standards of measurement. Procedures are derived to monitor adherence to the Company’s standards, while indicators enable top management and stakeholder to track our performance transparently. Targets are pe-riodically reviewed and updated to align with our aspirations. Finally, reports are consolidated to present the information to our stakeholders.

Our commitments and initiatives have been demonstrated through the following objectives.

y Operating in a consistent manner in line with leading international practices in all business areas towards transparency and consistency of corporate governance;

y Building and maintaining enduring relationships based on recognition and respect with the stakeholders and contributing to the long-term economic, social and institutional development of our communities;

y Seeking continual improvement in safety, health and environmental performance through robust management systems.

We embed our sustainability framework into all our operations. The sustainability framework is implemented at the employee level by aid of a document which outlines in a clear and transparent way the val-ues employees need to demonstrate in their day-to-day activities. Our policies set out what we believe in and what we promise to achieve in the areas of health and safety, environment, community relations and supply chain management.

Masan High-Tech Materials Sustainability Performance Report56 57

Our sustainability values

In 2021 the HCS policy “Commitment to re-sponsibility and sustainability – four princi-ples of our success “ and the corresponding MHT policy were revised. This resulted in a new MHT company-wide policy, which is listed below:

We are convinced that our sustainable suc-cess is based on a multitude of different factors: Starting with the qualification of our employees, through active health and safe-ty management, economic and ecological efficiency, energy efficiency, product and process quality, to the consideration of eth-ical and social aspects. These can be sum-marized in four principles.

As part of our integrated management system, we are therefore committed to the continual improvement of our products and manufacturing processes in terms of qual-ity, energy-related performance, minimiza-tion of risks and effects on the environment, safety and health of our employees, cus-tomers and the public, and compliance with all binding legal and self-imposed require-ments. The resources required for this are provided by the company accordingly.

PRINCIPLE 1Occupational health and safety

We provide a safe working environment for all our employees and workers so that they will return home safe and healthy every day. In order to maintain this standard continually, we rely on consistent, transparent communi-cation of information and specific training as well as active involvement of our employees.

We will only perform work that can be done safely. We know that all injuries, incidents, and work illnesses are preventable. On the basis that we are collectively and individual-ly responsible for preventing injuries to our-selves and others. Therefore any kind of safe-ty deficiencies, near misses and accidents at work are analysed in detail and regular risk assessments are carried out in order to elimi-nate sources of danger early and sustainably.

Occupational safety and health protection are important criteria even at the design and pro-curement stage of new processes and tech-nologies.

PRINCIPLE 2Quality awareness

We commit and develop our employees to quality and cost-conscious action. This en-ables us to assure our customers the ex-pected or specified quality by using our ex-perience and competence. Since quality is created at the source, we select our suppliers of raw materials, products and services in a targeted manner and develop them further in the sense of a long-term partnership. We continually develop the quality of our process-es and products according to the Plan-Do-Check-Act (PDCA) cycle.

PRINCIPLE 3Environmental protection and energy use

By using appropriate technical and economic processes in development, production and all other accompanying activities, we ensure that the environment and the resources available to us are treated with care, during mining, in all production processes along the entire val-ue chain, and during site/mine closure.

Beside mining, the conflict-free sourcing of raw materials, the recycling of our products (closed loop) as well as of other tungsten-con-taining scrap are priorities for us. Further-more, we are committed to a continuous improvement of our management systems in order to improve both our environmental and energy performance, and for the prevention of environmental pollution and waste caused by our operation activities.

We also pay attention to energy efficiency from the procurement process. In this way we can offer our customers environmentally friendly products.

To ensure that all employees and contractors will thoroughly acknowledge their responsibil-ity in environmental protection we provide the necessary information, training and guide-lines.

PRINCIPLE 4Communication

Communication is the foundation for success and for a trusting cooperation. That is why we promote employee satisfaction through an open culture of discussion and are com-mitted to the consultation and participation of our employees. We inform our stakeholders openly and transparently. We communicate our corporate policy on request. We inform the relevant parties about the goals derived from this and all binding obligations.”

Sustainability Goals reflected in HCS Policies and Regulations

Our vision is to be the leading integrated supplier of sophisticated high-tech materials critical to global innovation. In order to sustain and continuously improve all our processes and functions we focus on the following:

• Flexibly,• with the desired quality (Zero defect strategy) • and competitively on customer requirements

• On the basis of our Code of Conduct and in compliance with ISO 37301

• by demonstrating a high level of security of supply through a “multi-supplier” strategy in which we continuously develop our suppliers

• by increasing process efficiency continuously• through innovations in technologies and products. We identify

new trends at an early stage and align our research and pro-cesses accordingly

• by maintaining our know-how through active knowledge man-agement

• with a strong corporate culture

• Stay healthy • and are actively involved in its improvement

• A secure job• performance based remuneration• an appreciative management culture• a culture of coexistence• and the elimination of cultural and language barriers

• Actively manage the financial situation of the company in accor-dance with the defined KPIs (e.g.: sales, net income) including liquidity targets

• Monitor the sales and supply markets and react flexibly • React flexibly to transport and storage risks• Develop concepts to mitigate risks such as natural disasters

and force majeure

• The standards mentioned in MHT Annual & Sustainability Report 2020

• ISO standards (ISO 9001, ISO 14001, ISO 45001, ISO 50001)• OECD Due Diligence Guidance for Responsible Supply Chains

of Minerals from Conflict-Affected and High-Risk Areas • REGULATION (EU) 2017/821 OF THE EUROPEAN

PARLIAMENT AND OF THE COUNCIL of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas

• Modern Slavery act• REACH, RoHS

• Use our recycling expertise, offer our customers a “closed loop” process and buy our raw materials responsibly (Conflict free sourcing)

• increase our process efficiency of energy use and availability of our production equipment

• improve both our environmental and energy performance con-tinuously to achieve climate neutrality by 2045 at the latest

• offer our employees flexible working hours, good training and needs based education

Customer satisfactionWe increase customer satisfaction and loyalty by responding:

Competitive AbilityWe maintain our competitive advantage in the marketplace:

IT safetyAvailability of systems and data is ensured by negating third party criminal influence. Both personal and company data is handled re-sponsibly

Occupational health & safetyOur employees enjoy a working environment in which they:

Employee satisfactionWe promote employee satisfaction through:

Continued existence of the company In order to manage risks to the continued existence of the company, we will:

Applicable Standards

Sustainability We commit to work responsibly with the resources at our disposal. For this purpose, we:

We implement the necessary safety measures and pursue a Zero accidents strategy.


Back in 1987, the United Nations World Commission on Environment and Development defined sustainability as follows: “Humanity has the ability to make development sustainable – to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs”.

Accordingly, sustainability affects all areas of our lives and economic activity and is thus a task for the whole society. This calls for social development that is ecologically compatible, socially fair, and economically efficient.

The site in Germany is certified according to the standards Energy (ISO 50001:2018) and Environment (ISO 14001:2015). The scopes from these two areas, supplemented by the topics of "social" and "economic", are combined in the newly established sustainability team at the site Goslar.

The focus of sustainability management at H.C. Starck Tungsten GmbH is on climate strategy (mainly CO2 emissions and water consumption), emissions, wastewater and waste. The area of energy is mapped via the energy management system (EnMS). External and internal issues as well as the requirements and expectations of interested parties were taken into account when defining the scope of the EnMS. In addition, however, social aspects are also incorporated, whether for the company's own employees or for the community, such as a tree planting campaign in Goslar initiated by H.C. Starck Tungsten GmbH in November 2021.

The sustainability team essentially consists of people who have knowledge of the environmentally relevant processes and technologies in our company. Their knowledge is to be used to positively influence the direct and indirect environmental aspects in our companies in a sustainable manner.

Sustainability Management Team Goslar

Sustainability Management Officer Jan Torben Bornkessel, as Head, is therefore supported by representatives of the following corporate divisions:

a. Site Management

b. Operations (Technical Services, Production)

c. Maintenance; Process Control Technology

d. Sales (Sales, Business Development)

e. Procurement

f. Technology & Innovation

g. Controlling

h. HSEQ Management

i. Materials Management

The Sustainability Team is assigned the following responsibilities and authorities:

a. Ensure effective implementation, maintenance and improvement of the EMS.

b. Establishing and maintaining action plans that lead to continuous improvement in sustainability-related performance

c. Establishing criteria and procedures necessary to ensure effective functioning and governance of the EMS,

d. Promoting awareness of the EMS and binding commitments regarding the EMS across divisions.

e. Delegation of tasks

f. Planning of projects relevant to sustainability and monitoring of project implementation (schedule, time, cost control).

As described above, the ISO14001:2015 standard forms a central basis for the work of sustainability management. Therefore, in addition to Jan Torben Bornkessel, Site Manager Juliane Saupe and Director HSEQ, RSCM and Product Stewardship Dr. Markus Zumdick have also trained as Environmental Management Officers in 2021 and successfully passed their exams.

ACTIONS IN 2021

FOCUS 2022

In 2021, employees, together with their families planted 500 trees for the reforestation of the Harzforest and another 1000 trees were donated.

EMAS certification in fall 2020: the EMAS (Eco Management and Audit Scheme) is currently considered the most stringent environmental standard and will replace ISO 14001 and ISO 50001 certifications at the site. In addition to enhancing the company's image, certification is expected to lead to easier dealings with authorities (fewer inspections by the authorities) and, above all, to simplified approval procedures for new plants and thus to corresponding cost savings.

Development in workshops of possible topics presented to the management in December. The resulting tasks will be examined for opportunities and risks in various working groups in 2022 and options for implementation will be developed.

Start of installation of charging stations for refuelling employees' electric vehicles.

Founding of and participation in an interest group (Harz chemical network) with the focus on reducing CO2 emissions and conversion to "green" energy.

Set up Climate Strategy for plant Goslar.


IMPROVED SUSTAINABILITY GOVERNANCE STRUCTURE

The role and influence of CHESS Committee (Community, Health, Environment, Safety & Sustainability) in 2021 have been strengthened in all the areas. The three key goals of CHESS Committee including health and safety for employees, environmental protection, and community communication transparency continued to be drastically implemented and closely attached with the production and business activities of our company and contractors.

Members of the CHESS Committee are active participants in the activities of all departments and divisions within MHT and its subsidiaries, collabo-rating to execute the sustainability initiatives as well as providing additional supervision and strategic guidance.

Acting as a bridge to connect internal departments, the members of CHESS Committee for the 2020-2022 term have actively participated in the safety inspection of the areas, monitored compliance, conducted com-munication activities, and implemented the performance assessment of the Committee through a lot of issues reported and updated on CHESS Zalo group for timely handling, combined with periodic meetings (monthly and quarterly) with the attendance of managers of the Company.

2021 was a very challenging and volatile year due to the Covid-19 pan-demic. With united efforts of MHT, each member of CHESS Committee as a representative of different internal departments actively participat-ed in the movements such as: Supporting the prevention and control of Covid-19; Blood donation; voluntary donations; Coordinating with the pro-fessional Fire Fighting force to help local communities extinguish the fire; Participating in the emergency response and rescue to road accidents happened on the National Highway 37 near the company and in Dai Tu district, etc.CHESS Committee quarterly meeting

Looking forward, in 2022 MHT will focus on mobilizing all resources to improve the sustainability governance structure with the following commitments.

Promoting activities of CHESS activ-ities to enhance the values of safe-ty and environmental sanitation for their employees and contractors.

Continuing to implement the CHESS policies to undertake commitments and support employees, contrac-tors, customers, business partners and local communities in sharing the responsibilities to meet the related requirements.

Strengthening control measures to achieve the hazard-free target as-sessed by local communities and bring about socio-economic and en-vironmental benefits to the society.

CHESS

Management team

Risk and Audit Committee

Human Resources

Compensation and resettlement

Community Relations

ExternalRelations

Health Safety

Environment

Operations

Construction

Processing

Mining and Geology

Sustainability Committee

Focus2022

In 2022, CHESS Committee members will continue to develop their personal capacity and act as a representative of the department in the field of occupational health and safety. The representatives are the common voice of respective departments, raising the common issues for the Committee to address in a flexible and timely manner:

• Provide a consistent communication in all aspects as well as accu-rate and timely information updates.

• Continue to nominate and vote typical representatives for the CHESS Committee’s “Monthly Safety Awards”.

• Promote rapid information dissemination through Zalo channel

• Maintain monthly CHESS meetings as an employee engagement mechanism enabling the Company to continue delivering its goals in 2022

In addition, the CHESS Committee approves the “Monthly Safety Awards”, through which employees and contractors are recognized for their outstanding achievements, contributions, initiatives and typical hazard report in the workplace safety, health and hygiene. This helps encourage our people to work relentlessly towards the goals of enhancing safety and clean environmental culture at workplace to ensure “everyone working at Masan High-Tech Materials returns home safe and healthy every day”.

Masan High-Tech Materials62 Sustainability Performance Report 63

The Energy Management Board (EMB) at MHT was established in order to implement and monitor energy management activities, save and use energy efficiently and effectively.

In 2021, the staff of EMB consolidated and more streamlined. EMB’s operational regulations have also been adjusted and supplemented to concretize the responsibilities of the members as well as the Board’s duties. The structure of the new EMB is as follows.

At the end of 2021, EMB organized and coordinated with the contractor to conduct periodic energy audits for NPMC and MTC for the 3-year period from 2019 to 2021 to propose effective energy-saving solutions. In order to realize the “Net Zero” goal of MHT, EMB has researched and explored the source of “green power” - solar farms as well as promoted the search for other solutions. In particular, in 2022 EMB sets a target to prepare and apply an Energy Management System - ISO 50001. This will be the most important task of EMB in 2022 to focus on continuous improvement, effective solutions to save energy and reduce costs.

ENERGY MANAGEMENT COMMITTEE

MHT Energy Committee

Chairman of EnergyManagemant Board

Head of EnergyManagemant Board

Representative ofProcessing Department

(NPMC, MTC)

Representative ofMining and Geology

Department

Representative ofMaintenanceDepartment

Energy Manager of Board

HCS Energy Committee

The site in Goslar, Germany is the only one within H.C. Starck Tungsten Powders that is certified to ISO 50001:2018.

The aim of the energy management system (EnMS) in accordance with ISO 50001, which we are committed to complying with, is to continuously improve energy performance. As part of the energy management system (EnMS), all facilities and processes were assessed, in particular those with significant energy use (SEUs). The focus of the work in 2021 was to normalize the data of the SEU’s in order to facilitate the ongoing improvement of the EnPIs (“Energy Performance Indicators”) taking into account the influences of relevant variables.

In order to meet the requirements of ISO 50001:2018, an energy team was founded in 2019, headed by the new energy management officer Andreas König.

Reduce 5.0% energy consumption per product unit compared with 2021 at MTC;

Install an online particle size analyzer to control the crushed particle size;

Replacing the existing screening system by screening has useful surface area larger;

Replace Reactor Heater temperature control from manual to automatic.

FOCUS 2022

The Energy Team is assigned the following responsibilities and authorities: • Ensure effective implementation, maintenance and improvement of

the EnMS. • Implementing and maintaining action plans that result in continuous

improvement of energy-related performance • establishing criteria and procedures necessary to ensure effective

operation and management of the EnMS, such as: • Promoting awareness of the EnMS and energy goals across divisions • Delegation of tasks • Planning energy efficiency projects and monitoring project

implementation (schedule, time, cost control).

The energy management system representative with the energy team, as well as the department heads, are also responsible for the consistent further education and training of all company employees.

Since energy management is teamwork for us, the energy team consists of the energy management system officer as leader and representatives of the following divisions: • Operations (Technical Services, Production) • Maintenance • Process Control Technology • Engineering • Procurement • Technology & Innovation • Controlling • Site Management • Quality Management • Materials Management • ITLC

The energy team consists mainly of people who have knowledge of the energy-intensive processes and technologies in our company. Their knowledge is to be used to positively influence energy consumption in our companies in the long term.


The energy team’s projects in 2021

Start heat recovery H51

Tank insulation G81

Installation of steam measuring sections for chemistry

Optimization of the heating systems in administration buildings

Focus 2022

Replacementof control

air compressors

Capacityexpansion at the

rotary furnace through the use of an AI

(TIG Project)

Energy efficiency (TIG Project)

Projectsplanned for

2022

Heat recoveryH51

Measuringpoint concept


SUSTAINABILITY INNOVATION


Masan High-Tech Materials operates two state-of-the-art research facilities with one located in Germany and the other located in Vietnam. These facili-ties are focused on technology and innovation across the entire mineral and metal processing chain and recognised as a key pillar in Masan High-Tech Materials’ success in the business arena and maintaining long-term sustain-ability. With the ongoing commitment and continuously high expenditures in technology and innovation over all its process chains, Masan High-Tech Ma-terials not only secures the technology leadership position in the processing and production of Tungsten, Fluorite, Bismuth, Copper, and other materials. It also results in significant improvements in the company’s sustainability and environmental impacts.

Substantial funding and manhours are dedicated to the support and optimi-sation of Masan High-Tech Materials’ global network of processing facilities with the objective of improving the consistency of product quality and pro-duction efficiency. Superior and more precise production processes result in increased product yields, reduced waste, and minimisation of important en-vironmental factors. Consumption of items such as energy, water, reagents, and other auxiliaries can all be reduced and the production of waste and by-product streams minimised, therefore improving the sustainability and environmental impact of the processes being utilised.

One way in which sustainability is fostered is through focusing on new and alterative product development. Special sustainable R&D issues are also shaped with an ongoing dialogue with key customers and downstream us-ers of our high-tech materials. In 2021, we continued to have an open ear to better understand their needs and to develop - under mutual confiden-tiality - new and innovative products for the future. By mindful listening to the market, we do advanced research and development to accurately adapt the chemical and physical properties of our materials according to customer needs and requirements.

Innovation has long been key to making significant improvements in corporate environmental performance and sustainability. Masan High-Tech Materials has understood the importance of innovation in sustainability since its inception and consequently has a well-established platform for cultivating a strong culture of technological innovation.

In 2021, a multitude of R&D research activities targeting areas such as high product purity, raw material flexibility and new efficient production processes continued to support Masan High-Tech Materials’ efforts in the areas of overall sustainability and establishing global circular economies for the materials it produces currently and possibly in the future.

By collaborating with customers, observing global trends and through our own internal research and development activities, new and innovative products for the future are continually being identified and developed. The new products can be tailored to the customers’ existing needs or developed specifically to enable new manufacturing techniques or the production of new materials. Consequently, these products then also enable Masan High-Tech Materials’ customers to become more sustainable through superior production efficiency.

Technology & Innovation Global Expert working in the laboratory

Masan High-Tech Materials’ commitment to advanced technologi-cal development and innovation is not only demonstrated through the highly efficient and highly automated processing facilities that it operates around the world. But also, through the issuance of over 105 patents for the manufacturing of innovative products. Its Viet-namese MTC production facility has also been granted Hi-Tech Enterprise status by the government of Vietnam.

To achieve and maintain its focus on research and development, Masan High-Tech Materials utilises the latest in analytical labora-tory technology in combination with extensive pilot plants that can mimic all parts of its own and customers manufacturing processes. With the ability to conduct systematic research and development activities for hydrometallurgical, pyrometallurgical and classical physical metallurgical process technologies, these facilities are pivotal in refining and improving our products and processes.

Technology & Innovation Global Technical Centre


The recycling of tungsten scraps and wastes plays an important part and is one of the foundations of Masan High-Tech Materials sustainability within the industry. This enables not only access low-cost tungsten units but also prevents these materials being disposed into landfill preserving primary tungsten resources.

In this regard, below are some of the research and development activities undertaken by Masan High-Tech Materials in 2021 to increase the effectiveness and efficiency of its current and future recycling capabilities.

Improving Recycling Capability and Efficiency

Tungsten is one of the main materials produced by Masan High-Tech Materials and the Tungsten process chain can roughly be divided into 4 parts.

Mineralogical extraction and concentration of primary tungsten minerals into ore concentrates.

Hydrometallurgical processing and purification of ore concentrates and crude Sodium Tungsteate (ST) to generate pure Ammonium Paratungstate (APT). From this intermediatory product additional Tungsten chemicals (like Tungstic Acid or Ammonium Meta-tungstate) can be produced through additional steps of hydrometallurgical refinement.

Pyrometallurgical recycling of secondary resources (scrap and industrial wastes) to generate crude ST

In this regard, below are some of the research and development activities undertaken by Masan High-Tech Materials in 2021 to increase the effectiveness and efficiency of its current and future recycling capabilities.

From a business and sustainability perspective, the company is aiming to further expand our recycling capabilities. Market competition for sourcing and procuring high quality tungsten scraps continues to increase and recently exacerbated during the Covid-19 pandemic. However, quite a lot of different tungsten-containing materials are not being recycled. According to the International Tungsten Industry Association (ITIA), recycling rates for cemented carbides scraps can reach up to 80 %, whereas tungsten containing spent catalysts are often deposited in hazardous waste disposal sites, which of course, is not a sustainable solution and presents an area where we definitely strive to improve.

The reason for these materials not being recycled is usually that tungsten units are contaminated with other elements, like molybdenum, which are difficult to be separated. Therefore, it is crucial to understand the chemical behavior of these materials within the established process.

To achieve this, the company has developed a new lab-scale equipment to simulate our smelting process with just a few grams of raw material. This enables us to evaluate the digestion of different scrap types in a relatively short time. This allows for not only the fine tuning of the treatment of existing feed stocks, but also the evaluation of other raw materials such as spent W/Mo catalysts and W/Pb scraps. This makes it possible to develop specifically tailored digestion recipes aimed at higher tungsten selectivity, thus enabling us to expand our resource base to formerly unattractive materials.

Another important source of tungsten is the so-called “soft scrap”, consisting of a broad spectrum of different soft scrap types. Each type of soft scrap has its own set of unique parameters, make it difficult to process them efficiently. The amount of variability inherent with this type of scraps makes it unattractive for most tungsten recyclers, however, the efficient recycling platform in Goslar allows this material to be recycled economically. To maintain a high degree of input flexibility and to maintain the highest throughput through the soft scrap recycling process. A new process system was designed to homogenize different soft scraps with the help of an intensive mixer. The production scale unit was installed in 2021, and it now allows us to stabilize our soft scrap processing, resulting in reduced energy consumption and emissions.

Optimization of Scrap Pyrometallurgical Digestion

New Mixing Device for Tungsten Soft Scraps in the Goslar Smeltery

Laboratory Digestion Furnace

Intensive Soft Scrap Mixer


As extraction and processing technologies advance over time it makes the retreatment and recycling of historical low-grade tungsten mine tailings a significant opportunity to source additional primary tungsten units in a more sustainable manner.

Masan High-Tech Materials has not only completed extensive test work on its own tailings to evaluate the economic extraction of additional Tungsten units in the future but is also participating in a joint research project investigating the recycling low-grade Tungsten containing tailings in Brazil. Partners in the project include multiple government departments, universities and industry players from both Germany and Brazil.

Masan High-Tech Materials is also investigating alternative uses for its tailings within other industries such as the cement manufacture and fabrication within Vietnam.

During the production of Ammonium Para Tungstate (APT) a solid by-product is formed that is traditionally recycled back to the start of the production process. Reprocessing of this material incurs additional costs and product losses as well as reducing productivity of the entire circuit. This stream has desirable APT physical properties but contains some deleterious impurities. With the mindset of improving efficiencies and reducing wastage, Masan High-Tech Materials is always searching for ways to improve process efficiency. A research project to evaluate alternative methods to reprocess the by-product was undertaken and resulted in an innovative process alternative for retreating the material in just a few simple steps which no longer required it to be recycled back to the start of the process. The resultant product is sold directly as a final product. The new process in currently under construction and will be brought into full scale operation in 2022.

Processing of Low-grade Tailings

Development of fine APT sludge recycling process

A part of the ore tailing dam site at Nui Phao mining in Vietnam

An example of oxides produced at MTC

The much-anticipated installation and commissioning of membrane concentration technology with the company’s Ammonium Meta-tungstate (AMT) production process took place in 2021 and continued to be supported by the MHT R&D departments. This process was developed earlier on in 2017 from lab to pilot-scale in close collaboration with an industrial equipment supplier. At the end of 2018 a substantial funding was granted for the project by the German Federal Ministry for the Environment, Nature Conversation and Nuclear Safety (BMU). Besides debottlenecking of the existing production plant and making it more efficient, the introduction of this innovative concentration approach using modern environmentally friendly membrane technology allows the company to significantly reduce the energy consumption within the AMT production line. This reduction corresponds to yearly savings of more than 900t of CO2 emissions.

Implementation of Membrane Technology in the AMT Production Process

Energy efficiency is also a focus area of Masan High-Tech Materials’s research and development activities. Innovation in this area not only delivers a reduction in the company’s direct and indirect CO2 emissions but also delivers substantial cost savings to the business. Some of the key areas of innovation in energy efficiency are discussed below:

Energy Efficiency


Typically, the high-quality yellow tungsten oxide produced at Masan High-Tech Materials has a Fisher value at an average of 18 µm for the traditional tungsten market. With new applications of fine tungsten powder field, fine yellow tungsten oxide product with Fisher value in the range from 0.6 – 1.8 µm is required to meet this market demand. A few alternative routes have been investigated, with one optimal method of using an existing stream in the process to generate an intermediate product. This product is in turn converted to YTO, resulting in the desired Fisher value. This path has the potential to replace the traditional mechanical size reduction process with lower cost and energy consumption.

Micro-sized YTO

The original design of the leaching autoclaves at Masan High-Tech materials was a reverse pitched blade agitator, which is an ineffective design that causes sediment to accumulate at the bottom of the vessel, reducing heat transfer efficiency and increasing cleaning times. As a result, scaling at the bottom vessel reduces heating efficiency and causes a dead zone and blockages. To resolve this the agitator was reviewed and re-designed.

Several prototypes and trials upon completion resulted in a new blade design that would improve the agitation within the vessel and significantly reduce scaling at the bottom of the autoclaves. This not only enabled better heat transfer efficiency reducing the energy requirement but also allowed for an increase in the particle size distribution of the feed slurry into the leaching reactor. This further reduced the energy requirement in the upstream milling sections and improved washing efficiency in the downstream filtration section improving overall metal recoveries. The new design also increased the service life of the agitator.

Agitator upgrade on leaching autoclaves

Zoom/

X1000

X10000

Normal YTO Micro YTO 01 Micro YTO 02

A pitched-blade agitator in the leaching autoclave

Micro YTO structures compared to normal YTO

As a responsible corporate citizen, Masan High-Tech Materials actively engages in government and industry programs to reduce energy consumption across its global footprint. This is not only done at each of its individual operating centres but also in a holistic approach covering the entire life cycle of the materials that it produces.

As part of this activity Masan High-Tech Materials in combination with other industry leaders, universities and research institutes have jointly proposed a three-year research and development project and successfully applied to participate in a German government sponsored “Innovation for Energy Revolution” program. The project will investigate innovative technology to increase the energy efficiency of the hard metal production process from ore/scrap to finished tools.

Using an annual basis of 4,300t hard metal production in Germany, the ambitious target of

the project is to reduce energy consumption by more than 100 GWh/a, and to lower the CO2 footprint by more than 50.000 t/a. To achieve this goal the project will be focused on developing new innovative production processes such as optimized green machining, alternative sintering techniques, and additive manufacturing. It will also be focusing on working with equipment manufacturers to improve the efficiency of significant energy using equipment such as furnaces.

First analyses of the energy consumption of Masan High-Tech Materials’ tungsten Carbide (WC) process in Goslar between January and August 2021 show an energy demand of approx. 22 kWh/kg of product. This number is the sum of six different energy sources, whereby natural gas and electricity represent the main share. Compared to literature values of Furberg et al. depicting a non-Chinese WC production (ca. 28 kWh/kg) the energy consumption of HCS’s process is

already roughly 20% lower today. To further optimize our efficiency, a close cooperation with computational specialists was set up to develop/redesign different significant energy users.

Energy Management Teams have been established at all of Masan High-Tech Materials’ production sites which are in turn all overseen by the company’s sustainability committee. The goal of these teams is to better understand and manage energy consumption with the drive to either reduce or move to more sustainable sources of energy. Through the actions of these teams the company has determined a number of opportunities that will be actioned in future years. In addition, the Goslar operation has been certified by the International Organization for Standardization (ISO) in the areas of ISO 50001:2018 and ISO 50003:2016 for energy management.

Participation in Global Energy Reduction Programs


A large part of achieving sustainability is through the establishment of circular economies whereby the consumption of raw materials and primary resources are minimised, waste streams are minimized and the processing and reuse of recycled material is enhanced. This is an inherent part of Masan High-Tech Materials’ current business and innovation focus but also extends externally where it regularly participates in industry and government initiatives promoting and advancing the topic.

In 2021 this included the following:

Being a technical expert member of the European Raw Materials Alliance (ERMA) focusing on “Materials for Energy Storage and Conversion” and to support the Secretary General of the European Recycling Industries' Confederation (EuRIC) in his work to strengthen the production of raw and advanced materials and more specially the recycling of lithium ion/polymer batteries.

In the context of “How companies improve critical raw materials circularity” the Goslar research and development department delivered a lecture on “Paradigm Tungsten Processing” during “Raw Materials Week”. This is an initiative international round table on materials criticality, gathering a wide range of stakeholders so that they can discuss and exchange initiatives and policies in the field of raw materials.

Ongoing participation in REWIMET e.V. which is a cluster of companies, scientific institutions, and local authorities mainly within the Harz region, Germany. Its main purpose is to ensure the availability of raw materials through recycling. H.C. Starck Tungsten currently holds the seat of 2nd Chairman on the board of REWIMET. At this year’s summit the company was invited to present on “Closed Loop in Practice – Challenges in Tungsten Recycling”.

Innovating for the Future and Strengthening Circular Economies

circulareconomy

raw materials design

distribution

consumption

repair,reuse

production,remanufacturing

recycling

residual waste

c


With Masan High-Tech Materials’ endeavour for a new recycling horizon beyond its current capability within the tungsten space. A new high priority project was established during 2021 focusing on the development of cobalt recycling. With the aid of a considerable government grant for researching “Sustainable Co-Recycling”, the project will focus on the recovery of Cobalt and other materials from hard metal sludges and EV recycled battery Black Mass. Masan High-Tech Materials not only has considerable knowledge and expertise in developing and operating complex processing circuits and are highly experienced in the recycling business, but also apt at maintaining the rigorous HSE requirements for handling materials across the business chain.

As demonstrated above there are many synergies with the existing business but more specifically, these can be summarised as follows.

Heavy metal sludges

For many decades cobalt and tantalum containing sludges have been a by-product of the MHT hard metal recycling process. Making it readily available as a feed source.

Historic Producer

Up until 2003 the company was a producer of several hundred tonnes of cobalt metal powder per year. The facility was operated at the company’s Goslar site and produced cobalt from both primary and recycled materials.

EV Battery Black Mass

A global competitive market arena with increasing recycling standards and rising minimum recycling quotas around the globe will be established within the upcoming decade. H.C. Starck Tungsten also possesses historical expertise in this space being a former participant in the LIB cathode material business with insights into specifications, development, and production.

Analytical Edge

ChemiLytics, which is also a member of the Masan High-Tech Materials Group, is a knowledgeable and experienced analytical partner in LIB chemistries giving direct support to its research and development facilities.

Cobalt and Beyond

Successfully embracing a culture of technological development and innovation within a company not only requires support from company directors and funding of strategic work programs. It also requires a sustainable supply of intelligent and skilled individuals capable of developing these innovative solutions for not only for the benefit of the company but also the industry and the world. This is recognised by Masan High-Tech Materials and to ensure that it has access to the required talented individuals, it cultivates close relationships and works collaboratively with universities, scientific institutes and local schools in both Vietnam and Germany. This involves establishing joint projects, providing access to company resources, sponsorship of key awards and events and regular tours and site visits to each of our production and research facilities. These activities nurture and support the development of young academics and scientifically interested students into the field of technological innovation therefore ensuring its sustainability into the future.

Of particular note in 2021 and in conjunction with the Solid State Chemistry and Materials Science of the German Chemical Society (GDCh) the bi-annual “H.C. Starck Tungsten Award” for an outstanding doctoral thesis in the area of inorganic chemistry was granted to two young academics.

Innovation plays a major part in achieving and improving the sustainability of a business. Not only does it deliver improvements in environmental practices and performance but also improvements in social welfare and economic growth. Masan High-Tech Materials is very cognisant of this fact and is why it places such a high importance on ensuring the company has a strong culture of innovation.

Nurturing new innovators


The Mining and Geology (M&G) Department’s efforts are focused on producing sustainable mining outcomes by reducing costs, minimizing ore loss and dilution, providing fresh ore for the processing plant and explore revenue-generating opportunities in order to produce sustainable mining outputs.

In 2021, the M&G Department mined roughly 5.53M bcm of material, yielding little more than 3.50Mt of mineral ore or 1.1M bcm of ore and 4.43Mbcm of waste for a strip ratio of 4. All mining operations complied with both environmental and community standards.

SUSTAINABILITY MINING& RAW MATERIALS

5.53M bcm

of material

3.50Mt bcm

of mineral ore

1.1M bcm

of ore

4.43Mbcm

of waste

• Complete 2021 TSF construction lift to 116mRL for OTC, 138mRL for STC and 116mRL for HSD in time and in budget.

• Continue to receive praise for the professional completion of the TSF by ITRB board.TSF construction is critical every year to enable the tailings deposited in the TSF to not breach the height of the walls, therefore ensuring safety for the community living close to our site. The walls act as a safety barrier to hold back tailings material while also capturing water for processing to use. By completing the dam wall ahead of time, we have been making the dam more stable and secure.

• Complete the cut off trench to help monitor and understand heavy metal in the area

• Complete Willstock survey to understand the movement of heavy metal within the community area

• Drilling Horizontal holes on 0mRL resulting in 20% water level re-

duction allowing for stable walls • Categorizing mining waste to reuse and save resources

We have different waste categorization such as 3S, 3O, High Sulfur, Low Sulfur, Soil and Soft Rock. All these different waste rocks are sep-arated and placed in different areas of the mine. For example, 3O is used to build the TSF embankment of OTC and 3S is used to build the upstream embankment of STC. The reason for waste separation is to ensure the potential sulfur impact into the environment is contained to a specific area. There is potential for 3O waste rock to be sold in the future, similar to the soil project.

• Waste dump management plan being developedIn planning for our future waste placement, we understand the impact of disturbance we have in our mining license, thus developing plans to engage environment and community to support us in preparing the areas to be cleared or compensated ahead of time. The waste dump management plan allows us to have tighter control of our mine sus-tainability as we have future foresight of the areas that affect land dis-turbance.

A summary of the results M&G achieved within the year

MINING


H.C. Starck Tungsten Powders’ raw material sourcing is based on two principles: the continuous expansion of recycling activities and a fair, ethical, and environmentally friendly raw material sourcing.

The stringent, globally applicable procurement guidelines detailed in the Responsible Supply Chain Management System (RSCM) guarantee that H.C. Starck Tungsten Powders buys raw materials only from suppliers who comply with strict requirements with regard to environmental protection, occupational safety and social responsibility.

H.C. Starck Tungsten Powders condemns all activities in connection with the unlawful exploitation of mineral resources, no matter where such activities take place. As part of this commitment we have implemented an on-going policy of only purchasing raw materials that are conflict-free and that always meet the requirements of the OECD (relevant version of the “OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”), and the “Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas”.

Before starting new business with a supplier, there is a detailed check by the procurement and the legal department to confirm that this potential supplier fulfils all legal requirements and the requirements of the RSCM process. This check is repeated on a regularly basis during the whole time of the business relationship. Also, H.C. Starck Tungsten GmbH has incorporated due diligence requirements into legally binding agreements with direct suppliers. H.C. Starck Tungsten Powders has repeatedly been awarded the certificate for the processing of “conflict-free” Tungsten raw materials; the last audit was conducted in October 2021. All corresponding evaluations were done by independent auditors on behalf of the Responsible Minerals Initiative (RMI), a joint effort by the Responsible Business Alliance (RBA) and the Global e-Sustainability Initiative (GeSI).

Both the H.C. Starck Tungsten Powders Raw Materials Procurement Statement and the current OECD 5-Step Report, audit report and certificate can be viewed and downloaded from the H.C. Starck Tungsten Powders website.

RAW MATERIALS

Backed by decades of experience we are able to recycle almost all our products and compounds after use

The closed-loop production cycle at MHT

At the Goslar site, the focus is on the recycling of scrap metal as a raw material, which we obtain both on the free market and from our customers. Intermediates such as APT or tungsten oxides are mainly purchased from MHT. While the plant in Sarnia gets tungsten oxide exclusively from Masan High Tech Materials, the site in Ganzhou is currently supplied by JV Partner in Ganzhou.

4 3 2

1Recycling of

valuable materials

Tungsten chemicals Raw materials Tungsten Powders Customers

Scrap in the market

Ore mining andprocessing

H.C. StarckTungsten Powders

82.9%

2021

76.7%

2020

81.4%

2019

Recycling rate of raw materials - Goslar site

The global end-of-life recycling rate of tungsten is approximately 30% and, thus, belongs to the top third of the recycled metals.1 With our highly efficient recycling platform in Goslar we further seek to push this recycling rate. Research efforts in Central Technology & Innovation Global (TIG) Department focused in 2021 therefore also on expanding the currently processable scrap base in terms of flexibility and throughput. For more details, have a closer look at the chapter “Sustainability in Innovation” in this report.

[1] B. Zeiler, W.-D. Schubert, A. Bartl, Recycling of Tungsten – Current share, economic limitations and future potential, ITIA Newsletter May 2018, International Tungsten Industry Association, 2018


Implementation of recommendations from the 2021 RMAP to continuously improve

the RSCM system

Focus2022


In 2021 Nui Phao Processing Operations (NPMC and MTC) has maintained and improved our sustainability performance across all functional areas with the goal of contributing to the overall sustainability of Masan High-Tech Materials. This coupled with the integration of H.C. Starck has continued the development of a holistic approach to tungsten product development commencing in Vietnam with mining to concentration and then high-end specific tungsten products delivered to the world.

SUSTAINABILITYPROCESSING


MHT PROCESSING

Producing More with Less

The Nui Phao Operation mines and processes around 3.5 million tonnes of ore per year, containing tungsten, bismuth, fluorspar, copper, and small amounts of gold. It is a polymetallic orebody, and given the nature of the minerals, we are continuously identifying opportunities and implementing them in a prioritized manner to extract more products from the resource and do all activities with a lower impact.

In 2021, Masan High-Tech Materials replicated previous year’s high production achievements despite the changing global landscape. This included maintaining similar copper, tungsten and acid grade fluorspar production and recoveries. Furthermore, bismuth production exceeded the previous year’s production following the extensive maintenance program in the previous year. Ongoing continuous improvement (CI) strategies across the business units have yielded successes with stabilized produc-tion which has in turn enhanced efficiency and metal recovery performance. Development of circuit upgrades in the NPMC and the MTC areas has been the main focus of 2021 to enable the circuit to ef-fectively process lower feed grades and subsequently process more of the strategic resource contained within the Nui Phao orebody.

Operating processing equipment at MTC

W - Chemicals

WC / CTC

Raw material(Ore)

Sodium TungstateNa2WO4

(NH4)10W12O41

″APT″

WO3

W

Grinding, Disolution in NAOH

Reduction to W with hydrogen

Carburization to WC and / ormelting to CTC

Calcination of APT to WO3

Acid treatment (H2WO4) or part.therm. disintegration (AMT)

Cleaning, solvent extraction,Crystallization ″APT″

1

2

3

4

5

6

1

2

3 4

5

6

Scrap

Smeltingprocess

MTC/HCS Processing Flow Chart

Masan High-Tech Materials90

The application of modern technology and advanced production and processing lines at MHT ensures minimization of resource losses and optimisation of the value of natural resources, with a mineral recovery rate of over 96%. Tungsten chemical products such as APT, YTO, BTO are recognized by the Ministry of Industry and Trade as an industrial product with a purity of over 99%.

The mining and metals industry is considered relatively mature from the technological point of view, since its spending on R&D is usually low. In recognition of NHTCM’s contribution to Vietnam’s development of high-tech industries, Vietnam’s Ministry of Science and Technology has awarded the Company with a “High-Tech” Certificate. After the acquisi-tion, Masan Tungsten (MTC) became one of the leading producers and a global supplier of high specification tungsten chemicals (Ammonium Paratungstate (“APT”), Blue Tungsten Oxide (“BTO”) and Yellow Tung-sten Oxide (“YTO”)). In order to reinforce our globally recognized brand and reputation of a trusted supplier, MTC continues to invest into R&D expenditure as per statutory requirements, to maintain our “High-Tech” certification. A well-equipped laboratory was established in late 2017 to carry out the research and innovation activities for improving the efficiency and develop new technological solutions for our production lines in both MTC and NPMC.

In 2021 MTC capacity improvement project was implemented to in-crease the budgeted plant capacity, historical MTC process feed ca-pacity has been in the order of 6,500 tons WO3 per year, the successful target was increased above 7,400t of WO3 per year. This allows feed grade flexibility from previous 40-45% WO3 limits to significantly lower 30-35% WO3, with the processing capacity to increase feed material throughputs.

Reduction of MTC feed grade requires feeding low-grade NPMC con-centrates which also improves resource utilisation. The circuit improve-ments allow greater throughputs of low-grade TC by-products from NPMC which are currently being partially processed or stockpiled. At the beginning of March 2021, some 520t of WO3 was tied-up in these products which could be processed to marketable APT, on top of the ongoing annual production of 540tpa of WO3 contained in Low Grade (HG & HIMS) containing 9% WO3 on average.

Improvements to the MTC circuit included significant mechanical and automation upgrades which de-bottlenecking the filtration and leach reactor sections to allow more feed. These upgrades significantly re-duced the required operator manual intervention during the filtration op-

Committed to R&D Investment Examples of Improving the Efficiency of Our Refining Process

eration. Subsequent additional benefits included significant reduction in OH&S risks for operators relating to exposure to hazardous chemicals with less time required in the area and removing them from the vicinity of equipment during the hazardous periods of the filtration cy-cle. The change improves the business in terms of reducing operational risk, utilizing more of the Nui Phao resource and improving the cash position.


Studying samples at the R&D center in Vietnam


Integration of H.C. Starck Global Tungsten Business

With the purchase of the tungsten business of H.C. Starck Group GmbH, integration activities have been ongoing during 2021 despite the persisting global issues separating the business units. Successes have been achieved with a number of technical and business opportunities progressed during the year.

MHT is a leading global manufacturer of high-tech tungsten metal pow-ders and carbides (midstream tungsten products) including production hubs in Europe, North America, and China serving customers across the globe. A highly qualified and professional team of experts in R&D, application engineering, coupled with modern automated manufacturing processes ensure its customers benefit from the highest and consistent quality products. MHT remains committed to HCS’s innovative product development program including ultrafine size tungsten compounds.

In addition, MHT is now one of few companies in the world with com-prehensive, environmentally sound tungsten scrap recycling platform backed by proprietary intellectual property.

This transaction is a strategic step in executing MHT’s vision to become a leading vertically integrated high-tech industrial material platform in the world. Including low cost, stable primary supply of APT combined with dominant recycling scrap platform will provide MHT a global com-petitive edge.

MHT has become a leading midstream tungsten product supplier across critical industries such as mechanical engineering and tool making, min-ing, automotive, energy, aviation, and the chemical industry.

MTC Production Flow HCS Production Flow

HCS Goslar Production Flow

Mining &Concentrateproduction

TungstenLeaching

TungstenChemistry/Oxidation

TungstenChemistry/Oxidation

Tungsten OxideReduction

TungstenCarburization

Scrap Tungsten Recycling

MTC Processing plant in Vietnam H.C. Starck Cananda – Sarnia plant

Advanced Management Software

At MHT, we are applying advanced processing technology and all processed products are recognized by the Ministry of Industry and Trade as industrial products: tungsten, bis-muth, fluorspar, and other products. Especially, MHT is the only enterprise in the mining industry in Vietnam that applies the world’s advanced mining and processing manage-ment software to minimize resource losses and optimize value of mineral resources by operating the German technology-based tungsten chemical production line.

Advanced process control ensuring highest quality


HCS PROCESSING

Sustainability from a maintenance perspective

Different and changing challenges have an impact on a company and there-fore on the availability of the equipment. The machinery at H.C. Starck Tung-sten GmbH consists of continuous, quasi-continuous and batch-operated ma-chines. Therefore, it is essential that the maintenance programme is flexible and specifically designed for each machine. For this reason, a strategy mix of reactive, preventive and condition-oriented maintenance is used and will be continuously improved.

Due to good cooperation between sales, production planning and the team from operations, a maintenance and shut-down schedule is drawn up every year. This allows both resources and materials to be used in specific areas, and unplanned downtimes in the facilities have been significantly reduced.

Not only unplanned shutdowns could be reduced through this good coopera-tion, but also the energy consumption. The used energies can be visualised more transparently through optimised displays and change effects are imme-diately visible.

In 2020, a new platform was implemented. It allows maintenance notifications to be reported in a simple and standardised way and it is possible to view the processing status at any time. In daily workshops, the received reports are dis-cussed, prioritised and responsibilities and executing trades are defined. Com-pleted work can be reported back immediately and directly on site. Thanks to this system, which is transparent in all directions, both efficiency and employee satisfaction have increased in 2021.

In order to be prepared for new challenges in terms of IT security, availability and optimisation of the equipment and processes, the process control systems were updated. For this task, new standards were introduced in the program-ming of the control system. The use of this modular system ensures stan-dardised programming, which also has a positive effect on costs and effort.

As part of the restructuring and modification of the maintenance strategies, it was therefore possible to have a positive influence on operating and mainte-nance costs.

The objective of our maintenance is to increase the availability and reliability of the equipment in the long term, and we will continue working towards this goal.

Maintenance activities in Sarnia in 2021

Pusher Furnace Capacity Improvement

Pusher Furnace was retubed, tubes were treated with High Emissivity coating to promote more uniform heat distribution. Maintenance improvements were concentrated on restoring design capacity and increasing Mean Time Between Failure (MTBF) of the Tubes. As a result, full Furnace capacity was restored to 18 Tubes.

Rotary Kiln(s) PLC Upgrade

Rotary Kilns 1,2 and 3 obsolete PLCs were upgraded at a cost of ~20 K ($ Can) each, which will improve reliability and make troubleshooting easier and therefore faster.

Preventive Maintenance - Rotary Kiln H2 Filters

Old filters were creating higher dP across the filter, causing the H2 system pressure to operate near the high limit, leading to frequent process upsets. Therefore, a Preventive Maintenance Program was established for H2 Filters. Lower dP across these filters has improved H2 process stability.

Downtime Reduction

To achieve less unscheduled downtime, Maintenance and Engineering were both involved in production planning meetings to discuss all possible equip-ment risks and find solutions to mitigate unplaced downtime.

First-class education in own machine shop


SUSTAINABILITYSUPPLY CHAIN MANAGEMENT

The global pandemic strongly impacted supply chains in 2020 with most major manufacturing countries shutting down in a worldwide effort to ride down the pandemic wave. Unfortunately, 2020 was only the curtain raiser to how 2021 was to play out to our already stretched Supply Chain.

With over 25,000 material lines and 32 different processing reagents ar-riving from various global locations, the pressure was on for our SCM teams to get together with our onsite customers to establish a working plan that ensured the continuity of supply and quality of product without adversely affecting costs.

Given the rising shipping expenses due to escalating fuel prices and a growing scarcity of shipping containers, 2021 was shaping up to be a mountain to be climbed.

The base camp was established. The first hill to get over was the growing scarcity of reagents. It was becoming a major issue and had the pos-sibility of adversely affecting our production if we couldn’t navigate our way through the issues. Our procurement team immediately went into overdrive contacting current and alternative vendors to ensure continuity to our customers on site.

In a short time, we had locked in supply of all our reagents ensuring, minimal interruption to supply and little affect to our costings. The next hill to climb was shipping times. Most of our reagents are shipped on a DDP basis, so working with our vendors to ensure we were always at the top of the paperwork pile, in the beginning, middle and end of the shipping cycle was our number one priority. Transhipments were becoming an issue as ports became clogged with mountains of transiting containers and scores of vessels waiting to be offloaded. Credit must be given to our Inbound Logistics team who, under immense pressure, worked tirelessly, contact-ing vendors, shipping agents and tracing shipments to ensure that the squeaky wheel got the oil, in our case, our containers on the ship.

Procurement

Materials Management

Controlled vs un-controlled purchase orders Controlled vs un-controlled purchase orders

Inventory value 2021


In the background our Inventory teams were busy working with our processing teams to establish safety stock levels to ensure we would always have stock at or on the way to site to cover any shortages due to increased manufacturing and shipping times. They were able to fine tune the stocks using our customers current and forecasted usage data to ensure we kept a balance between stock arriving and being used. All this was done with a mind to managing the available storage space on site.

With a lot of the hard work now done and everything looking to be on track, we had only enough time to take a few breaths before the next challenge came before us.

In the second half of 2021, the world started coming out of lockdown, reopening manufacturing and placing major orders for inventory products. One of those just happened to be our most used reagent, Caustic Soda. Most manufacturers had depleted their inventories and minimised production, then throwed into this the electricity shortage in China, the largest manufacturer in Taiwan having major production issues and the festive season fast approaching, we were again facing another mountain to climb. The SCM teams were already suited up and ready to climb that mountain. They pulled together as a team to climb that mountain and safely come down the other side with no shortages or production loses.

2021 has been a challenge, a mountain that our SCM team has had to climb time and time again. Through all of it, the team have all learnt valuable new skills and we now have a much stronger and more resilient SCM team and Supply Chain, ready to take on the challenges of 2022 and beyond.

Despite the disruption to worldwide supply chains the MHT Vietnam business continued to ensure that procurement activities were managed in a controlled manner.

Due to the disruptions in worldwide supply chains, the business had to increase stock levels to ensure safe and stable operations were maintained throughout 2021.

Orders contribution

98% 98% 97% 97% 96% 99% 98% 98% 97% 98% 97% 98%90% 94%

98% 99% 99%

1% 1% 3% 4% 1% 2% 2% 3% 2% 3% 2%2%

Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21

2% 3% 10% 6% 2%

Controlled PO Uncontrolled PO Target

Inventory Value ($/month)

20.84M

Dec - 20 Jan - 21 Feb - 21 Mar - 21 Apr - 21 May - 21 Jun - 21 Jul - 21 Aug - 21 Sep - 21 Oct - 21 Nov - 21

21.03M 21.11M21.28M

21.69M 21.67M21.95M

22.6M

23.34M

22.26M

23.07M23.27M

HCS SUSTAINABILITY WITHIN MATERIALS MANAGEMENT GLOBAL

Logistics International Trade law & Customs (ITLC)

Raw Material & Inventory Planning (RMIP)


In the year 2021, H.C. Starck Tungsten’s previously called Supply Chain Management department was renamed as Materials Manage-ment Global. Besides the existing areas of Raw Material & Inventory Planning (RMIP), Distribution Management (DM) and Production Plan-ning (PP) it has now been extended by two areas of expertise: Logis-tics (in March 2021) and International Trade law & Customs (ITLC; in June 2021). The merging of these formerly separate organizational entities allows for integrated solutions and cost as well as process op-timizations to improve our overall ability to deliver high-quality products and services to our customers, especially considering the adverse ef-fects that the Covid-19 pandemic had on worldwide logistics, the Brexit as well as new regulations such as the re-classification of hazardous goods that required new storage concepts.

In the past, the logistics approach of H.C. Starck Tungsten included a large amount of outsourcing logistics services such as warehousing and shipping to a logistics service provider. Establishing the expertise and knowhow of logistics within H.C. Starck Tungsten now allows us to review and evaluate all aspects of logistics such as warehousing, inter-nal logistics as well as external transportation/shipping. It is our overall logistics strategy to become more independent, be more agile, flexible, and faster, have better cost transparency and tighter cost control as well as general control over logistics processes.

Since March 2021, Logistics has achieved a significant reduction of the use of special pallets for storing Tungsten raw materials, intermediates, finished products as well as consumables, packaging and spare parts. The percentage of special pallets decreased from 75 percent to 47 per-cent leading to a storage cost reduction of around 6000€ from March to November 2021. Shifting storage to standard pallets is not only more cost effective, but also preserves natural resources (wood) as standard pallets are smaller in terms of length and width.

Our ITLC team supports the entire organization navigate the complex and changing rules that govern the import and export of Tungsten products. Export control, for example, is an integral part of compliance by establishing internal control measures to ensure that H.C. Starck Tungsten adheres to relevant export control regulations. Besides their contribution to compliance, ITLC also fosters sustainability by facilitat-ing our international trade, which in general is recognized as a con-tributing factor to global warming. ITLC’s role is to streamline customs clearance procedures, use best practices and tools to control trade transactions so that they can reduce the time and cost of moving goods across borders.

In cooperation with H.C. Starck Tungsten’s logistics service provider for shipping, we identified several alternative freight forwarders in 2021 al-lowing H.C. Starck Tungsten to choose from shipping options in terms of availability, price, and service, and in the future sustainability as we are incorporating environmental considerations in freight forwarding more and more. Among others we started tracking the carbon footprint of our transports. A few other projects were initiated to further reduce H.C. Starck Tungsten’s carbon footprint: (1) maximising vehicle utili-zation for the internal production logistics and (2) a modal shift to rail transportation for a reliable, cost effective and environmentally friendly alternative to road transport.

The control of slow-moving inventory (means no inventory turns for more than 90 days) has been challenging during the Covid-19 spandemic and its related effects on logistics, longer lead times and hence higher inventory levels to buffer against these supply chain disruptions. Although inventory levels rose overall due to strategic stocks to deal with the market uncertainty and supply chain disruptions, slow mover levels could even be reduced further compared to previous years from worldwide 8 percent in 2018, 5 percent in 2019, 10 percent in 2020 to now 4 percent in 2021.

RMIP and Logistics also contracted a new external warehouse location to account for a change in the harmonised classification of Cobalt by the European Union and ensured that H.C. Starck Tungsten is compliant with regards to the storage of Cobalt containing Tungsten scraps.

Slow moves worldwide (int WO3)

APAC APAC APAC APACNAFTA NAFTA NAFTA NAFTA

Dec 2018

920

185

215

4515

57

116

285166

65

140

61

234

177

Dec 2019 Dec 2020 Dec 2021

EMEA EMEA EMEA EMEATotal Total Total Total

3,000

2,500

2,000

1,000

1,500

500

0

moving slow movers

483 330

1,544

2,358

525 439

1,294

2,258

439 657577 904

1,593 2,210

2,609 3,772

Distribution Management

Technical Materials/Equipment Procurement

Continuing the close cooperation with the logistics service provider, Distribution Management successfully kept our airfreight volumes at a constantly low level. The roll-out of a new release process for airfreight shipments in 2021 increased awareness throughout the organization and supports our goal to keep volumes, costs, and carbon footprint at a minimum. The trend from 2018 to 2020 was continued in 2021 despite the severe supply chain disruptions and logistics challenges that the Covid-19-pandemic caused. Overall shipping volumes by air, sea and road increased by 22 percent in 2021 compared to 2020. However, we still managed to ship only 1 percent of our overall volumes by air in 2021 accounting for 15 percent of the overall freight costs (based on preliminary year-end freight cost statistics for 2021).

Finally, first trials to optimize container space were started in 2021. In cooperation with Sales, Distribution Management could agree on filling big bags with Tungsten Chemicals to the maximum load for certain customers. Further improvements could be achieved in cooperation with the logistics service provider by stacking two layers of pallets in a sea freight container, doubling the volume we can ship in one contain-er. Overall, this combined improvement of big bag load and container stacking not only smoothens Operations, but also saves approximately an entire 40’ container load per delivery to the customer.

In 2021, the Technical Procurement Department in Ganzhou has made efforts to guarantee that all materials and services, excluding raw materials, were delivered in the correct quality, on time, and in the proper quantity to support the regular operation of equipment and production as required by the production department.

Under this premise, the technical procurement department saved ¥288.3k through negotiation, down price and optimization of suppliers.

Furthermore, the team completely supported and collaborated with the Production & Equipment department in order to move forward with the invest-ment project and promote it in order to meet the production capacity and product quality targets on time.

Percentage Gross Weight

Percentage Net value

2018

Airfreight 11% 68%

Seafreight 7% 5%

Truck 82% 27%

2019

Airfreight 4% 31%

Seafreight 18% 24%

Truck 77% 39%

2020

Airfreight 1% 15%

Seafreight 19% 38%

Truck 80% 48%

2021

Airfreight 1% 15%

Seafreight 21% 41%

Truck 79% 44%


SUSTAINABILITYHUMAN RESOURCES


2020-2021 were two challenging years for each business, individual; however, the Company continued to resiliently follow the leadership of the Management team and combined efforts and unity of all employees. For Masan High-Tech Materials, these challenges are also opportunities for us to build a sustainable engagement among its employees, uplift the corporate culture and promote growth mindset, providing leverage for the sustainable development of the Company. Employees are the focus of the development and breakthrough of the Company.

In the middle of difficulties lie opportunities, together we have developed specific action plans to safely, flexibly adapt and overcome challenges, create and seek new opportunities, and improve optimal efficiency in the global human resource management. Besides providing a favorable working environment, ensuring benefits and policies for employees in a transparent and equitable manner, keeping the entire workforce healthy and safe in the pandemic period is a key factor.

With the aim of organizational consolidation, we make constant efforts to amend and develop the policies, regulations of human resources to suit the new situation such as amendment of Internal Labour Regulations; Recruitment Policy and Process; Transfer, Promotion and Concurrent Work Assignment Process; Procedure for Disciplinary Action; Guidelines for Work From Home; Health Checkup Guidelines; Guidelines for health declaration; Guidelines for Quarantine and Benefits to employees under quarantine of Covid-19. Especially, we issued a set of policies across MHT, taking a step in the organizational design and operation towards centralization and management by core policies including Human Resources Policy, Compliance Policy, Commitment to responsibility and sustainability - four principles of our success, External Relation Policy.


Year The total number of employees in MHT globally

2016 1,343

2017 1,363

2018 1,403

2019 1,403

2020 2,010

2021 2,074

The total number of employees in MHT globally is provided in the table below:

WORKFORCE STRUCTUREBy AgeThe Company’s employee age ranges within the golden working age, mostly from 30 to 40 years old, accounting for 44%. The number of employees over 50 years old accounts for 15%. The age group just entering the labor market accounts for 16%.

By genderDue to the characteristics in a heavy industry and mining company with special working roster, good physical health, the number of female employees remains stable, accounting for 24% of the total workforce in 2021.

18-20

Above 50

40-45

30-40

Female

Male

20-30

15%0%

25%

44%

16%

2,074

24%

76%

2,074

By RankThe highest percentage in the MHT’s workforce structure is direct operators (53%), 7% higher than 2020. Next, technicians and supervisors account for 28% and 13% respectively.

Members of the Board of Directors and middle managers account for 2% and 3% respectively, higher than 2020.

By length of serviceA friendly and engaging work environment helps attract and retain the employees. The length of service indicator has showed that 20% of employees have worked at MHT for more than 10 years, 43% and 21% of employees have worked for 5-10 years and 2-5 years respectively, and the percentage of new hiress is less than long-service employees.

Staff

Manager

Supervisor

Officer

Director

2% 3%

13%

28%53%

2,074

By CountriesWith 05 processing plants and many business operations, marketing offices located in many countries in the world, the workforce percentage of MHT by workplace is 70%, 21%, 7%, 2% in Vietnam, Germany, China and Canada respectively, and the rest in USA and Japan.

< 1 year

1 year - < 2 year

2 year - < 5 year

5 year - < 10 year

> = 10 year

Vietnam

Germany

Canada

Japan

China

US

2,074

2%

0.2%

70%

21%

7%

2,074

20%11%

5%

21%

43%


Year 2016 2017 2018 2019 2020 2021

Employee number in total 1,343 1,363 1,403 1,403 1,403 1,454

NPMC 1,027 1,072 1,150 1,157 1,096 1,133

MTC 316 291 253 246 307 321

Of which

Vietnamese 1,236 1,261 1,303 1,309 1,329 1,394

Expats 107 102 100 94 74 60

Average income (VND million per month) for Vietnamese employees 10.3 11.1 11.4 11.8 11.9 11.9

Number of employees and average income at MHT in Vietnam

* In compliance with the information security policy, the detailed information of employees working in other countries is not provided

TRAINING AND DEVELOPMENT

It has been proven in practice that countries with limited natural resources have unfavorable natural conditions, yet such countries flourish and “take off” as they value and stay focused on development and promotion of their available human resources. Human resources training and development is one of the top priorities at MHT based on continuous improvement and robust transformation of training quality in combination with recruitment policy, talent retention and benefits.

In 2021, all training activities in most of MHT’s subsidiaries are carried out through both internal and external training courses with well-known training establishments, providing qualitative training courses, supporting training cost, meeting the demand on capability development for the employees. In order to ensure safety during the pandemic outbreak period, most of the training courses are delivered virtually, making it easy and convenient for our employees to arrange their work and fully join, obtain good outcomes. The training plans are developed and implemented more flexibly to adapt the pandemic situation and meet social distancing regulations by local government, ensure to maximize the time of direct learning for learners and meet the training objectives.

For global connection, we make full use of online applications such as Microsoft Office Teams, Google Hangouts Meet, Zoom and use English language to communicate as a bridge to connect with employees in other countries where our business units operate. All training materials are developed in English language, so it can be used globally, and tailored in the local countries by native language. We encourage, attract, prioritize and value candidates who are able to speak

many languages such as Chinese, Japanese, English, German and Vietnamese to effectively support the organization and improve the performance of individuals.

We stay connected with one another through training activities on global human resources policies that are considered a human resources philosophy critical to the organization. Besides, we organized virtual workshops with the aim of both training and discussion on the strategy to transform into a unified and synchronous system. Depending on the nature of each subsidiary, its training methods can be adjusted to suit the actual conditions, making full use of available resources to conduct internal training and actively adapt virtual training method in a flexible manner, improve the effectiveness of training activities, contributing to the growth of the organization.

International specialists and Vietnamese engineers discussing projects at NPM plant


MHT in ChinaIn 2021, total professional training man-hours are 962 hours with 214 training sessions. A number of internal and external training courses for employees were conducted such as New Employee Orientation, Basic Skills including operation skill training, equipment training, technology process training, HSEQ training, production and maintenance management, eight disciplines (8D) problem solving training, professional skills, special equipment operation training such as forklift, crane, etc.

The Company further focuses on individual capacity building and team learning, creating favorable conditions for employees to learn at their demand, orients future career planning and promotes their work ability to deliver better achievements for the Company.

MHT in GermanyVocational training for young people is of particular importance, and so is it at H.C. Starck. What they all have in common is that the training in each case consists of a combination of practical in-company training and activity and theoretical-school instruction and must be completed with an official certificate examination by a commission at the Chamber of Industry and Commerce in order to be recognised as a vocational qualification in Germany. Besides maintaining the training in the profession of chemical engineering and industrial mechanic, the Company have added new professions of industrial clerk at Tungsten and chemical laboratory assistant at ChemiLytics, in a course of 2.5 to 3-year apprenticeships, providing qualified human resources, forming the basis for all laboratory services offered by ChemiLytics, as well as knowledge in the area of research & development at Tungsten. At present, 20 young people are undergoing training at Tungsten and ChemiLytics.

MHT in Canada

Training and employee development are indispensable parts in the human resource strategy, contributing to providing a safe and efficient work environment. In 2021, there were 03 employees participating in the internal audit training course of ISO 14001. The company also cooperated with the Canadian Management Training Center which is one of 20 members of the Industrial Educational Cooperative (IEC), through high quality, effective and cost training, providing many learning opportunities for employees by provision of training courses, sponsorship for excellent learners and introduction of world best practices to meet various training needs, improving the qualifications and capacity of the employees.

In addition, employees participated in an annual 2-day training course to improve the current skills through training modules, including external training conducted by IEC, on-the-job training by external training providers and internal exercises to simulate different scenarios. Especially, the company provides financial support for employees to join capacity building courses, helping attract and retain the employees who are interested in improving their knowledge, skills for career progression.

Effective teamwork is the key to success


Working in modern offices at HCS, Goslar

In 2021, 1,488 training contents have been delivered with a total of 6,753 professional training man-hours, equivalent to 25,841 training man-hours for all employees and 18,574 attendees.

In 2021, most of the training topics focused on maintaining a safe work environment for employees and regulatory compliance:

• Safety training courses are conducted regularly for MHT employees and contractors with a total of 11,675 attendees.

• Cooperation with Thai Nguyen Technology and Trade College to organize an occupational safety and hygiene training course as per the regulations of Decree No. 44/2016/NĐ-CP on occupational safety and hygiene training for 366 employees in the rank 3, and 38 employees in the rank 1 as expatriate and Vietnamese managers.

• Coordinating with Thai Nguyen Police Department of Firefighting and Rescue to conduct training, inspection and issue of Fire Prevention and Fighting certificate for 96 employees of the Company in accordance with regulations of Decree No. 136/2021/NĐ-CP dated November 24, 2020 by the Government detailing a number of articles of Law on Fire Prevention and Fighting and Law and the Law amending and supplementing a number of articles of the Law on Fire Prevention and Fighting.

MHT in Vietnam

The company also invested in human resources development through compulsory internal training programs such as labor discipline; awareness on non-compete and non-conflict of interest agreements, internal policies for employees; upskill training for workers to operate equipment, professional training for young engineers, skill development for successors. In order to help employees adapt to the new normal, the Company often organizes workshops to enhance awareness on health and protective measures for employees and their family members such as: high blood pressure issues, thyroid gland disease, life insurance for health protection and financial accumulation, safe adaptation to Covid-19. The Company also disseminated brief training topics to employees through engagement activities, Blog Radio program and internal communication channels both virtual and in-person modes to reach employees effectively.

The training courses help the employees apply knowledge and skills both at work and in their daily life. Employees feel delighted because the Company is always concerned about their personal growth, capacity building, and as a result, they want to stay with the Company for a long time. In parallel with HR training, talent development, succession development plan, creating opportunities for career development are also strengthened in most of the internal departments. In this regard, we must mention the important role of the foreign specialist team in the process of transferring experience, knowledge and skills to Vietnamese teams. In 2021, 106 Vietnamese employees have been promoted to higher positions or transfered to other roles to meet the requirement of business.

ENGAGED - HEALTHY - DYNAMIC WORKFORCE

A united team always creates extraordinary synergy to overcome any challenge. This is clearly proven in the context of Covid-19 globally where is facing a lot of challenges and obstacles. At MHT, the employee engagement has created great motivation to go through such challenges together, because MHT’s subsidiaries make constant effort to maintain and develop our business operation as well as ensure material and mental life, health and engagement among employees in the company.

MHT in Vietnam

The employee engagement is strengthened through direct two-way discussion between Managers and employees, especially the presentation sessions on the site quarterly performance made by the General Manager for employees, helping them understand the business performance situation, opportunities, challenges and feel willing to share with the Company.

We create strong belief among employees by ensuring and maintaining their benefits given the complicated situation of the Covid-19 pandemic such as: maintaining healthcare insurance for employees and their family members, promoting the skills and capacity of internal health care team: rapid advice and response during Covid-19 period, seasonal flu vaccination, maintaining annual heath checkup program, providing a safe shield for employees by Covid-19 vaccination, offering insurance package “Stay healthy during the pandemic”, supporting employees in completing procedures for Covid-19 support package from unemployment insurance fund in a proper and timely manner, support package for employees buying life insurance or non-life insurance.

The company and internal Trade Union jointly organized various cultural, sport, art programs and events that inspire, motivate and strengthen the faith and engagement of the employees in the whole Company: International Women’s Day (March 8), Vietnamese Women's Day (October 20), Labor Day, Mid-autumn Festival, Tet holidays. Beloved Shutdown, Christmas, Blog Radio, Company Day, Masan Group Day, etc. Especially, the Program “MHT stays strong in the Covid-19 pandemic” with a wide participation of MHTers and their family members, together joining in the exercise competition, boosting their health to beat Covid-19 with the spirit of “A happy, healthy and vibrant life for a strong MHT”.

Blood donation – an annual CSR activity at MHT

Celebrating International Women’s Day in Thai Nguyen site, Vietnam


A series of events make our employees feel excited and emotional such as Masan Serving, Masan Pride and Masan Sharing. Especially, the charity program “Masan Sharing” at local schools helps poor children overcome difficulties, go to school, support the people in Covid-19 prevention and control as well as help colleagues reduce difficulty and feel peace-of-mind to work for the Company. At the end of 2021, employees participated in the 7th Blood donation program that successfully organized with the record blood donors, and 254 donated blood units.

During the year, the Company always encourages employees to develop their capability, contribute initiatives and ideas in the improvement of

performance, plant efficiency, cost effectiveness. Total 46 Star Awards were presented to individuals and teams with the aim of recognizing their outstanding achievements in 2021, and 24 employees received the certificate of 10 years of service for the development of the Company. The positive results from these activities demonstrated a high stability of workforce and long-term service to the Company. In 2021, the turnover rate was always under control, accounting for 9.05%, of which voluntary and compulsory turnover rates were 6.95% and 2.1% respectively.

MHT in ChinaThe company held the annual commendation award in January 2021 for outstanding employees and gave certificates of 5 years of service. Through this activity, employees were honored and valued, motivating them to obtain better achievements in the coming year. Besides, the Company held a number of engagement activities such as International Women's Day (March 8th), International Children’s Day, trips for employees by group, Site tour for local graduates, etc.

The Company successfully passed the labor inspection by the Government and awarded the “A Law-abiding integrity unit” in two consecutive years of 2020 and 2021.

Celebrating International Women’s Day in Ganzhou site, China

Annual commendation for employees in Ganzhou Outings for Ganzhou employees


MHT in Germany As part of the Company’s health management program, the Easter Egg Hunting competition held by the Health team from March 30th to April 5th, 2021 received the enthusiastic participation of the employees (89%). On April 12th, the Company organized a lucky draw program for hard-working Easter egg hunters with individual and team prizes. The competition not only brought a happy atmosphere but also gave a lot of healthy gifts for participants.

In May and June 2021, the “Pedometer Challenge” was held with the participation of 19 teams from the companies operating in the Metallurgiepark Oker with 7 members each team, of which 11 teams from H.C. Starck Tungsten Powders and ChemiLytics achieved outstanding results with a total of 747.664.096 steps, equivalent to around 1.5 circum navigations of the Earth. Each participant walked the average of 17,125 steps per day with meaningful

In a further event, managers from the site management area plus HSEQ management met for a guided mountain bike tour "around Goslar". For some colleagues, this was a great opportunity to get together and experience trails around Goslar in a new way.

In addition, the company health management includes many other offers such as yoga classes, massages, ergonomics support, the "mobile break", fruit baskets, etc. The Company also started to install charging stations for employees’ electric vehicle, establish and participate in interest group (Harz chemistry network) with the focus on reducing CO2 emissions and transforming to “green” energy.

commitment “Donate one green tree for every 1,000 steps to join hands in reforestation in the Harz Mountains”. With this wonderful commitment, a total of 1,500 trees were planted here. Besides, a number of trees were also planted in the forest city of Goslar in November under the instruction of the Goslar-based “Forest for tomorrow” Association. Interestingly, the program was joined by Mr. Craig Bradshaw (MHT CEO) and Mr. Marc Roos (Global Human Resources Director) and it was also time for the first snow in Harz in the year.

Easter egg hunt

MHT CEO joined with HCS at “Forests for Tomorrow” campaign

MHT in CanadaMany internal activities were organized throughout the year 2021, contributing to building an environment culture, close relationship at workplace, including:

• BBQ lunch (including burgers & hot dogs and ice-cream during the summer)

• Expanded fitness: Employees were given the opportunity to buy any item/product that relates to fitness and wellbeing such home gym equipment, bicycles, yoga matt, and sporting equipment such as golf clubs, rackets etc.

• Christmas Events

• Annual Golf tournament addition, employees had a chance to join in the charity activities in the community such as

• Christmas Food Drive - onsite for Inn of Good Shepherd to help poor workers, the unemployed and the homeless. This is a joint fundraising event between TODA Advance Materials and H.C. Starck

• Christmas Gifts for under-privileged children in the community

• Celebration of Lights - Set-up of annual light display in central community park

• Little League Sponsorships - Hockey and Baseball

BBQ lunch

Celebration of LightsAnnual Golf Tournament

Each activity has a significant impact on employee engagement at each subsidiary of MHT. We work together to build a friendly working environment where everyone can learn from one another, interact, unite and be determined to take MHT reach further.


HUMAN RESOURCES BUSINESS PARTNER (HRBP)

Promoting the role of Human Resources Business Partner (HRBP) is one of the key objectives to improve the efficiency of human resources management at MHT. HRBP team gradually implemented the human resource development goals and the business strategy of the Company through active coordination with and support of the internal departments to perform the following key tasks:

• Update changes of laws on human resources, approach the trends in human resources development, assess the current system and identify opportunities to align the system of policies of the Company with Masan Group to ensure consistency and transparency, as well as timely adjust to meet the actual business requirements of the Company.

• Identification of talent is the key to success of the organization. HRBP provided effective assessment tools and strongly supported the functional managers to determine talents through the talent development program. This is the initial success in the talent management, retention and development of the organization with five employees nominated for the program and ready to take over key roles in the organization with their performance ranked as highly effective or higher. • Effective performance of the role of HR business partner. HRBP orients the departments to set up organizational structure and appropriate personnel allocation through recruitment, transfer, nomination for promotion. It also plays an active role in supporting the departments in restructuring to meet critical demand in the current scenario, maximize employee potential, contributing to successful achievement of important development goals of the organization in each period.

• Realizing that the internal human resources are the core function for the development, localization as a momentum to stabilize the organization in both capacity and workforce. HRBP strongly promotes the training process and empowers local employees at MHT, making a significant contribution to the “human resources localization” to optimize human resource cost and promote the development of local workforce, enabling them to take over key roles in the managerial and professional structure of the Company.

2021 is a challenging year for human resources management at MHT. Due to the impact of Covid-19 pandemic, in combination with implementing the human resource development goals and the business strategy of the Company, HRBP plays a frontline role in the Covid-19 prevention and control through the following activities:

• With the agility and flexibility in responding to actual situation, HRBP worked with MHT’s Steering Committee for Covid-19 prevention and control to actively develop and implement specific action plans such as coordinating with our Clinic and IT teams to formulate a travel history declaration form for MHT employees and contractors when entring the Site, supporting the contact tracing of Covid-19 confirmed or suspected cases, coordinating the quarantine and completing the necessary procedures and associated benefits for employees, etc. In the meantime, we ensure the internal communication on Covid-19 prevention and control measures with diverse contents and methods.

• In the context of requirements of human resources for the business operations of the Company amid the challenge “fighting the pandemic is like fighting the enemy”, HRBP with the spirit of “Can do” actively developed and coordinated rapid response activities, and prepared well for responding to emergencies caused by Covid-19 outbreak nationwide. Some typical activities are included: Adjustment of the roster in a flexible manner for each department, work from home arrangement for administrative teams, accommodation for employees from outside Thai Nguyen province, separate vehicles for each department, etc. These activities helped reduce the risk of physical contact among employees and minimize the risk of Covid-19 infection during working at MHT.

During 2021, with the coordination of HRBP, the Covid-19 vaccination program for all MHT employees and contractors working at site was successfully conducted with 93% of people receiving second dose. This is an important element to achieve herd immunity against Covid-19, reduce quarantine time when traveling and contribute to a safe and healthy MHT during the pandemic period.


HR RISK MANAGEMENT

Since risk management has a direct impact on our business performance, all MHT subsidiaries are always proactive in identifying and managing risks, as well as implementing suitable and effective risk management procedures.

In Vietnam

The Steering Committee for Covid-19 prevention and control actively developed specific action plans to adapt the complicated situation in the battle “fighting the pandemic is like fighting the enemy”, issued directives and guidelines on the health protective measures, Covid-19 preventive measures to all employees in a timely manner and well prepared for responding emergency events caused by Covid-19 outbreak in Thai Nguyen province in particular and in Vietnam in general.

A series of measures to control the risk of infection have been implemented such as completion of a new travel approval system, work from home for administrative block, practice “5K” message recommended by the Ministry of Health; social distancing on shuttle buses, in the guest houses provided by the Company to ensure safety for employees, change of the rosters of employees to minimize the risks of physical contact, policy for expatriate employees affected by travel restrictions due to the long-lasting pandemic, etc. All information related to the Covid-19 situation is regularly updated and promptly disseminated to our employees, business partners and contractors. Especially, the company jointly worked with local government, health facilities to organize Covid-19 vaccination program for all MHT employees and contractors working at site with 93% of people receiving the second dose as of the end of 2021.

MHT employees complying with social distancing measures during the Covid-19 pandemic

In Germany

Strict requirements of health protection measures for employees are provided, and all employees must adhere to the standards of occupational health and safety. In addition, we supported employees in drug prevention, nutrition advice, stress management and based on the development of average age of the workforce as well as additional health preventative measures like vaccination or medical checkup in purposes to determine risks of heart attack or stroke of each employee. In addition, we also have healthcare workers and doctors who are experienced, willing to care for employees’ health, give advice and help prepare tests of physical health and workplace assessment, especially giving advice on the Covid-19 prevention and control measures during the Covid-19 outbreak period. Because most of office workers work from home, we developed a virtual training course as a further measure in the sense of health management and protection for employees.

In Canada and China

The Company updates related policies in Covid-19 period, ensures compliance with the updated regulations in the locality, enforces to implement advanced measures and updated procedures as well as provides strict guidelines for both employees and customers on working methods to reduce the infection of Covid-19 at the workplace. Besides, we focus on determining potential risks of environment, health, and safety at the workplace. Effectively handling all potential risks, therefore minimizing negative outcome, and ensuring a safe workplace. Emergency response drills are conducted at least once a year. Employees have chance to give response to emergency situations which might happen in reality and test their ability and readiness in giving response to those events. Workplace audit is conducted monthly by members of the Committee of Health and Safety. The findings are reported to the area manager and timeline will be given to address the issues. Employees are also trained on both theory and practical aspects of handling a chemical spill incident.

Controlling risks and safeguarding employees’ health will contribute to creating a safe working environment, maintaining a stable workforce, ensuring our continuous production and business as well as greater chance for business expansion and the ability of our assets to operate efficiently.


SUSTAINABILITYHEALTH & SAFETY


HEALTH AND SAFETY IN VIETNAM

At MHT, we provide a safe working environment for all employees and workers so that they can return home safe and healthy every day. In order to maintain this standard continually, we rely on consistent, transparent communication of information and specific training as well as active involvement of our employees.

We only perform the jobs when the hazards at the workplace have been identified and addressed as well as all safety requirements have been met. We know that all injuries, incidents, and work-related diseases can be prevented on the premise that we are all accountable for preventing damage to ourselves and others, both collectively and individually. Therefore, any kind of safety deficiencies, near misses and accidents at work are analyzed in detail and thorough measures are taken in order to eliminate or diminish the causes of danger as soon as possible and provide a safe workplace.

Occupational safety and health protection are important criteria as a prerequisite for commencing the work, even at the design stage, application of processes or purchasing new technologies.

From Company to Community

SAFETY

This helped us achieve positive outcomes in the Covid-19 prevention and control below:

• Number of F0 cases advised and controlled: 03



• Number of employees vaccinated: 1,396 and 2nd dose of 97.8%.

In 2021, the Company continued to implement Safety activities, including:

• Conducting inspections and assessment of contractors’ compliance in the occupational safety, health and fire prevention, and supporting the contractors in taking corrective actions for related issues.

• Developing and issuing Procedures to ensure compliance with safety regulations at MHT, including permit to work procedure on occupational health, safety and security.

• Preparing check lists and conducting periodic inspections of work locations, plants and equipment to ensure guarding measures, job hazard analyses and pre-operational checks are in place.

• Inspecting all equipment, machine etc., to ensure proper equipment maintenance, prevent failure during operation as well as avoid risks and incidents related to the equipment.

Effective control of Covid-19 pandemic at the workplace

Safety

These accomplishments are the result of the tireless efforts of the health care professionals (Health team) and prompt instruction of the Board of Directors in the disease prevention and control to protect the health for all employees and contractors of the company.

• Health team plays an important role in advising the Steering Committee for Covid-19 Prevention and Control.

• Follow up 24/7 to update the epidemic’s progress and situation as well as regulations from competent authorities to ensure that it will not affect the business activities of the company.

• Actively support Covid-19 vaccination activities as well as conduct Covid-19 tests for all employees of the company and contractors.

In 2021, we experienced an outbreak of the Covid-19 pandemic. Joining hands with the whole country to beat Covid-19, MHT strengthened preventive measures in order to maintain our business continuity and ensure the health and safety for employees.

1,396employees vaccinated

Covid-19 rapid testing for employees in Thai Nguyen, Vietnam

Throughout the year, a total of 18 fundamental safety messages have been communicated to all employees and contractors through email, bulletin boards and intranet sites.

In addition, the Company stays focused on review, revision and release of regulations, rules on health, safety and security. The Golden Rules of safety are also posted in prominent locations to provide information for all company employees, contractors and visitors, as well as help enhance employee awareness.

MHT also look to feedback or suggestions from employees through surveys on safety culture, then take appropriate measures or improvements.

The training courses at MHT play a very important role in realizing the goal of “Every person working at Masan High-Tech Materials returns home safe and healthy everyday”.

Training materials are updated and revised to suit the actual situation and roles such as: General safety induction for visitors, OHS induction training for hazard identification, assessment etc. The flexible online training has helped the Company conduct general safety induction training course for 100% of new employees, refresher training or advanced safety training courses for long-service staff.

Especially, in 2021, the Company developed a training program “Awareness of Safety Attitudes” to add the training list to promote the safety culture for all employees of the company and contractors.

Enhancing Safety Culture

Safety Training

The continued implementation and development of the safety programs has demonstrated the relentless efforts of the company in building a working environment with a strong safety culture.

However, a serious incident outside the plant site that resulted in the loss of a worker in October 2021 showed that efforts to strive for occupational safety are never enough. From this incident, the Company has taken more stringent measures for both internal and external plant sites, outlining the orientations for its operation management, particularly for contractors and business partners, so as to meet production and workplace safety requirements.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Number Of Training Attendees - 2021

415

1,348

2,837

1,003

306131

1.241

1,851

1,097

733417

684

0

1,000

2,000

3,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Safe Working Hours - 2021

602

882.5

2193.6

291.25

392.5118.75

1282.5

2215.5

1575.3

788521

840

0

500

1,000

1,500

2,000

2,500

3,000

0 0 2 21 3 4 011

19

63

87

43 41

121

155

FATA LTI

Incident

RWIMTI FAI PD NM/NC Total

50

100

150

200

0

2020 2021


At MHT, we follow the motto “People are the most valuable assets of the business. Having healthy and competent human resources is a profitable investment and the key to sustainable development”. In this approach, we provide an overall robust health assessment program to all of our people.

Human Capital - A Driving Force for Sustainable Economic Growth

HEALTH

The company provides a kaleidoscope of comprehensive, workplace and family health care programs aligned with national health programs, towards long-term health care solutions.

The solutions are focused on preventing and minimizing health risks as well as providing health education and timely intervention, as the situation may be. The ultimate goal of health policies is to protect human resources while also attracting talent through health care as a significant medical benefit.

OCCUPATIONALDISEASE

ACCIDENTS AND MEDICAL EMERGENCIES

NON-COMMUNICABLE

DISEASES, ESPECIALLY METABOLIC DISEASES

INFECTIOUS DISEASES,

ESPECIALLY PREVENTABLE

DISEASES

This program centers around four key health areas:

Occupational disease

Conduct pre-employment health checkup and periodic health checkup, including occupational health examinations in accordance with national occupational health program.

Carry out planned occupational surveillance twice a year as well as ad-hoc occupational surveillance at all our operations, using best industrial monitoring practices and working closely with professional government agencies.

Conduct mandatory training programs on occupational health prevention for employees before starting the work, and other occupational health training sessions throughout the year.

Assess the health trends and medical solutions to prevent occupational health risks for employees and develop preventive measures in place to reduce the likelihood of exposure.

Annual checkup

In 2021, the Clinic reviewed and gave medical advice to 1091 and 244 employees of NPMC and MTC respectively (100% of employees). The report on annual health checks is the basis to set up healthcare programs to deal with emerging health problems.

Occupational hygiene

At our site operations, our occupational hygienist, in collaboration with a certified government agency; the National Institute of Occupational and Environmental Health (NIEOH) and Institute of Environment Science and Public Health (IESH) regularly perform monitoring and conduct high standard occupational hygiene training programs. In 2021, there were extensive surveillance workplace samples taken and several monitoring programs conducted in support of our drive to ensure a healthy environment for our workforce. Below are some key activities:

Solutions for each specific risk area

• Assessment of 807 samples of physicochemical and ergonomic factors at all working areas from operation areas to administrative areas. The ergonomic assessment is conducted and supported by the National Institute of Occupational and Environmental Health (NIOEH), then a number of activities are implemented to improve working posture to prevent musculoskeletal diseases for employees.

• Conduct monthly occupational hygiene inspections at the plant site to promptly identify and take measures to improve the issues in the working environment.

• Food hygiene and safety inspection of company and catering service providers.

• Our occupational hygienist worked with Human Resources Department to review and re-evaluate the working conditions and the list of arduous, hazardous and dangerous occupations in the Company to ensure the proper benefits for employees in accordance with regulations of the law.

Medical check-up and health advice for MHT employees


Medical Training

Other medical training courses were conducted, including:

• Training on hearing protection for a total of 1,006 employees and contractors.

• Training on Covid-19 preventive measures for supervisors or higher.

Our Clinic

There are 12 healthcare workers in the Vietnam Clinic, consisting of four doctors having general practitioner degrees and medical specialty certificates, one nurse, five medical assistants, one pharmacist cum administrative clerk and one occupational hygienist. The medical clinic provides 24-hour support.

Our Clinic personnel also attended and completed several courses during the year such as technical training course on SARS-CoV-2 specimen collection, storage, packaging and transport; training course on Covid-19 preventive measures. A comprehensive development plan helps develop our medical personnel and keep them abreast of changes in medical legislation and procedures as well as maintain a high level of skill. The training courses were conducted for healthcare workers throughout the year:

• 01 doctor is studying in Ear Nose and Throat (ENT) specialist - Level one.

• 01 occupational hygienist is studying in a master's degree in public health.

• Medical staff, in collaboration with the Emergency Response Team (ERT), conduct weekly and monthly internal training on chemical management, rescue equipment practice and field drills on various emergency scenarios.

Injury and medical emergencies

Our site medical facilities are manned by doctors, nurses and paramedics that are internationally trained to provide emergency medical care during an emergency.

• Our site services are manned 24/7 throughout the year and extend emergency medical care services to the surrounding community.

• Our dedicated Emergency Response Team and medical staff, regularly participate in emergency drills and undergo robust fitness training.

• The medical facilities are well equipped to manage routine and emergency health care and the medical staff are certified to operate specialized medical equipment.

• Our emergency personnel work in collaboration with surrounding government and community medical facilities to provide rapid and effective emergency care.


Rescue exercise at MTC

Obtain a certification of MTC AFFF system by Police Depart-ment of Fire Fighting and Rescue under Ministry of Public Security.

Conduct compliance assessment on occupational safety and health and fire prevention for contractors, follow up and urge them about the progress of corrective actions.

Develop regulations, procedures, and rules of Safety.

Develop “Awareness of safety cultures” training materials.

Initially build a safety system following ISO 45001:2018.

Conduct a compliance assessment program on occupational safety, hygiene, and fire prevention and fighting for contrac-tors based on the the laws and MHT regulations.

Continue to hold CHESS Committee grand meetingss and monthly meetingsss.

Provide additional occupational workplace monitoring for the areas of high risk and concern.

Actively and continuously take preventive measures of Covid-19 infection.

Further education and training for safety personnel.

FOCUS 2022


SECURITY

Over the years, Masan High-Tech Materials has built and strengthened the security forces in terms of expertise and professionalism to meet the requirements of ensuring security at the Company, safeguarding the inviolability of the Company's assets, contributing to the sustainable operation of the business, and creating a safe environment for all employees.

The Security team controls and maintains the order of all site access and exit activities for people, vehicles and assets to ensure compliance with internal rules and regulations; limit the losses and prevent theft; manage risks related to the order and security.

In 2021, the Security team strengthened a far-reaching role in various aspects:

• Product security: Prevention of theft, fraud, loss inside the processing lines, ensuring the optimization of productivity, high performance and future development.

• Supply chain security: Ensure safe logistics and procurement activities, reduce the risks of loss, financial and legal fraud, and maintain our advantages against business partners.

• Internal security: Ensure a spotless and strong human resource team, advise on the purging or not hiring of individuals with complicated profile, contribute to the human resource development strategy.

• Compliance control: Investigate and handle individuals, violations, and negative acts.

• Community security: Contribute to the resolution of lingering issues and relationship conflicts between the company’s business development, expansion and community interests by preventing, addressing and harmonizing them.

• Coordinated with the local police to arrest 05 offenders in the locality stealing the assets of the company for detainment or reformatory education, helping make the locality more peaceful.

• Coordinated with the Community team and local government to handle 04 cases of local people (Hamlet 6, Ha Thuong commune, Lien Gioi residential group – Hung Son town) who opposed and obstructed the Company’s activities.

• Coordinated with Dai Tu District Police to arrest 01 mineral broker selling MTC’s products and confiscated 35.5kg of finished products.

• Investigated, advised and participated in handling complaints and lawsuits related to the Company.

• Investigated and handled a labor disciplinary breach involving contractor vehicles and corporate personnel, resulting in a fatal accident.

• Gave advice on the sale and purchase to avoid potential legal and financial risks

• Conducted 03 training and communication courses for 97 employees, 11 drills of fire prevention and fighting plan, 220 drills of equipment operation, 02 big drills on fire prevention and fighting.

• Advised and completed application for anss appraisal and acceptance certificate of fire prevention and fighting for MTC.

• Supported the locality in responding to 08 fire fighting and rescue cases in Dai Tu district that were directly contacted by local people.

Assured Security

Fire Fighting and Rescue

In addition, the Security team also contributes significantly to crisis management such as responding to Covid-19 pandemic together with Health & Safety Department and working with Group Security to effectively implement the program “Restructure - Streamline” at MHT with the aim of having a streamlined, effective and optimal organizational structure.

HEALTH AND SAFETY AT HCS

The safety and health of all employees, both those employed by the company and external companies on the factory premises, is a top priority for H.C. Starck Tungsten Powders. This is also documented by the certification of the Goslar and Ganzhou sites according to ISO 45001 “Management Systems for Safety and Health at Work”; the Sarnia site is pursuing the goals of a Toxic Reduction Plan.

As in 2020, in 2021 the SARS-Cov-2 pandemic was a dominant theme. Numerous measures were decided and implemented to avoid a loss of performance. These included mobile working, increased use of virtual meetings, special protection for high-risk patients and staggered working hours to reduce contact. Regularly SARS Cov-2 meetings were held between management, site management and the operating board in order to be able to react immediately to current developments. All employees were informed via Mail and information screens about the results of the meetings.

Addictive substances such as alcohol or other mind-altering drugs endanger both your own safety and that of your colleagues. To counter these dangers, the working group addiction has developed a guideline on addiction as part of the company health management system. This has been made available to managers and provides recommendations for identifying addiction problems and for further action.

In order to achieve the “zero accidents” target set in the company’s objectives, both accidents and near-hits are handled according to a defined process and the incidents, together with the resulting measures and lessons learned, are presented at the monthly management meetings and partly (fatal accidents and accident with days off) at the Critical Incident Report. A further publication takes place on the information screens. Additional, components of the monthly reporting is also the reported safety deficiencies, which are discussed in the companies at the daily morning meeting.

At the Goslar site, H.C. Starck Tungsten GmbH works closely with the specialist department for occupational safety in the Metallurgical Park, which also provides the officers for occupational safety.

Maintain a Zero Harm Working Environment

SAFETY

In addition to the security training courses offered online, some of which are required by law, the “Days of Security” (2020: 4 / 2021 4; participants: all employees of Operations and Site Management) are held annually with extensive instruction and information. One component is the fire drills (for all employees), which are flanked by unannounced evacuation drills (2020: 2 / 2021 3), 1 PMG-training (for 2020 / 2021 each for lone work) or the handling of personal protective equipment (PSE). For PSE, H.C. Starck Tungsten has invested 490107 € in 2020 and a comparable amount in 2021.

As part of the cooperation:

Inspections and safety tours are carried out (2020 14 / 2021 18), which are supplemented by regular tours of the company’s safety officers,

To determine and assess the concentrations of hazard-ous substances in the air in working areas, work area analyses / control measurements are carried out in accor-dance with the Technical Rules for Hazardous Substanc-es 402 (TRGS 402) (2020: 7 / 2021: 10). In a few areas, limit values were found to have been exceeded, requiring measures to be taken and also forming the basis for the procurement of blower respiratory protection.

The committee meetings for occupational safety (2020: 4 / 2021:4), with the security safety officers (2020: 6 / 2021 7), and with the foremen (2020: 1 / 2021 2) are held.

First aid training is offered (2020: 52 participants / 2021: 24), whereby H.C. Starck Tungsten GmbH already clearly exceeds the required minimum of 10% of all employees to be trained as first aiders.

Further safety training courses organized by the trade as-sociation BGRCI (2020: 8 courses / 2021:12).


Incident Data ManagementIn Sarnia

2021 2020 2019 2018 2017

Fatal Accidents (FA) 0.00 0.00 0.00 0.00 0.00

DAWC with 1-3 Days Away From Work 1.00 0.00 1.00 0.00 0.00

DAWC with >3 days away from work = German BG Case (BGC) 0.00 0.00 0.00 1.00 0.00

Days Away From Work Cases (DAWC) 1.00 0.00 1.00 1.00 0.00

Total Recordable Cases (TRC) 1.00 0.00 1.00 1.00 0.00

Days Away From Work (Total DAW) 2.00 0.00 2.00 4.00 0.00

Lost Calendar Days (incl. Weekend) 2.00 0.00 2.00 4.00 0.00

Headcount (HC) 46.00 42.00 48.00 49.00 48.00

Total Hours Worked (THW) 89,012.22 87,209.94 99,421.18 101,172.00 98,019.00

Number of Regular Occupational Health Checkups 6 4 15 18 17.00

First Aid trained employees 32 0 0 22 0.00

Number of Days Away from Work Cases of third party Contractors (DAWC 3) 0 0 0 0 0.00

Health and Safety training for HCST employees. (Number of training courses completed) 21 19 54 18 24.00

German Accident Rate (MAQ) 11.23 0.00 10.06 9.88 0.00

German Accident Rate (BG-MAQ) 0.00 0.00 0.00 9.88 0.00

German Severity Rate (USQ) 22.47 0.00 20.12 39.54 0.00

German 1000 employee Rate (1000-Mann-Quote) 0.00 0.00 0.00 20.41 0.00

Total Recordable Cases Rate (TRCR) 2.25 0.00 2.01 1.98 0.00

Days Away From Work Cases Rate (DAWCR) 2.25 0.00 2.01 1.98 0.00

Severity Rate (according to OSHA) 4.49 0.00 4.02 7.91 0.00


In Ganzhou

2021 2020 2019 2018 2017

Fatal Accidents (FA) 0.00 0.00 0.00 0.00 0.00

DAWC with 1-3 Days Away From Work 0.00 1.00 1.00 0.00 0.00

DAWC with >3 days away from work = German BG Case (BGC) 2.00 4.00 3.00 3.00 2.00



Days Away From Work (Total DAW) 39.00 92.00 57.00 135.00 163.00

Lost Calendar Days (incl. Weekend) 53.00 106.00 69.00 189.00 269.00

Headcount (HC) 136.00 128.00 132.00 122.00 120.00

Total Hours Worked (THW) 289,428.00 285,487.00 287,834.00 274,252.00 263,528.50

Number of Regular Occupational Health Checkups 109.00 141.00 145.00 122.00 125.00

First Aid trained employees 25.00 25.00 20.00 30.00 25.00

Number of Days Away from Work Cases of third party Contractors (DAWC 3) 0.00 0.00 0.00 0.00 0.00

Health and Safety training for HCST employees. (Number of training courses completed) 220.00 207.00 356.00 345.00 361.00








In Goslar

2021 2020 2019 2018 2017

Fatal Accidents (FA) 0 0 0 0.00 0.00

DAWC with 1-3 Days Away From Work 0 2 2 0.00 3.00

DAWC with >3 days away from work = German BG Case (BGC) 2 4 2.00 2.00 3.00



Days Away From Work (Total DAW) 16 67 33 16.00 94.00

Lost Calendar Days (incl. Weekend) 21 83 43 18.00 124.00

Headcount (HC) 358 349 332 249.00 211.00

Total Hours Worked (THW) 524927 493289 492,143 336,575.00 305,106.00

Number of Regular Occupational Health Checkups 600 520 397 562.00 551.00

First Aid trained employees 24 52 36 24.00 23.00

Number of Days Away from Work Cases of third party Contractors (DAWC 3) 0 0 0 0.00 0.00

Health and Safety training for HCST employees. (Number of training courses completed) 52 38 37 32.00 26.00









Work in chemical industry plants is associated with specific risks. In addition to the described measures and training for H.C. Starck Tungsten employees, we also feel responsible for the safety of employees of external companies who work on our behalf. In addition to an initial safety briefing by plant security when entering the premises, employees of external companies must complete and pass a tungsten-specific safety training course before starting work at H.C. Starck Tungsten.

We have implemented a system of coordinators, H.C. Starck Tungsten Engineers, who are responsible for the execution of work by third parties and discuss the risks with them on site. The coordinators are the contact persons for the contractors and also carry out inspections of equipment brought in by the contractors, as required. The coordinator is responsible for the safety of “his” construction site.

The plant area in Goslar is fenced in and monitored 24/7 by factory security via CCTV and regular inspection tours. Visitors and external companies are registered in advance by the receiver / requester at H.C. Starck Tungsten and must identify themselves at the access control. Vehicles belonging to outside companies are weighed at the entrance and exit to and from the factory premises, bag checks (also for H.C. Starck Tungsten employees) are carried out at random. PSE will be made available to visitors by plant security if required. Private cars and bicycles are not allowed on the entire fenced-in factory premises, parking spaces are located outside.

Ensuring a Secure Plant

Goslar Plant

Fire Brigade

To combat fires and chemical accidents, a plant fire department with two full-time firefighters and volunteer firefighters from the plants is available 24/7 in Goslar. Regular training with the fire departments surrounding the plant ensures smooth cooperation between the fire departments in the event of major damage. The plant fire department can be called in from outside if necessary due to their experience in fighting chemical accidents.

Responders performed a total of 368 response hours in 2020, of which approximately 60 hours were performed by the On-call service alone.

In addition, 4 clearances and 38 fire alarm shutdowns were performed for the companies Tungsten in the MPO. This corresponds to approximately 41 working hours.

Statistics of the Fire Brigade

2020 2021

Fire operations 5 1

False alarms (fire alarm system) 11 29

Technical assistance 22 41

Other missions (On-call service) 38 104

Total 76 175

Emergency evacuation and fire drill in Goslar


Ganzhou Plant

Traffic Safety

Most of our employees ride electromobile to work while the road conditions are not very good, especially recently the government is increasing road construction. Therefore, road traffic safety is particularly important at Ganzhou. We specially invited the traffic police to conduct road traffic safety training for our employees.

Sarnia Plant

In 2021, two additional AEDs were installed on Site for employees to attend emergency first aid training course. Expert tutoring and practical exercises were given to learners on the topics of basic life support (CPR), safety aspects of defibrillation and breathing management. Employees are now able to use the onsite defibrillators after gaining practical experience in using the equipment.

To mitigate tripping hazards in the milling area, a condux mill - vacuum line was relocated. This worked as preventative measures to help reduce the risk of potential ergonomic issues.

Health and Safety

In order to let our employees know how to use some fire facilities, in an emergency, how to use them to protect human life, we invited firefighters to carry out professional training for our employees.

Road traffic safety training in Ganzhou Professional training on using fire facilities in an emergency

Fire protection

In order to improve the staff’s fire protection knowledge, we invited professional firefighters to carry out the special training to our employees and examination. In the next years to come, this training will be conducted once a year. Every employee is to have the basic knowledge of fire protection, including how to put out small fires with a fire extinguisher and large fires with fire hydrant water, and how to eliminate the fire in the early stage of the fire.

Comprehensive emergency drill Comprehensive emergency drill


Our employees enjoy a working environment in which they stay healthy and in which they are actively involved in the improvement of safety and health at work. In the suggested improvement system there is a category for safety improvement; reported safety deficiencies are handled with the highest priority.

In addition to the trained first responders (the relevant training is repeated by the first responders every two years), there is a first-aid service at the Goslar site that can be reached on site 24/7. In addition to providing first aid to injured persons and the associated documentation, the medical service is also responsible for cleaning protective masks.

Pre-care and post-care examinations are carried out by the company doctor, as are consultations (e.g. before business trips abroad) and vaccinations. In 2021, a total of 1835 hours of care was provided by the safety specialists and the company doctor (actuarially required: at least 1861 hours). To ensure specific medical care for our employees - e.g. after accidents - in the surrounding hospitals, the doctors there are trained by the company doctor.

The long-term preservation of the health of our employees is the task of the company health management (CHM). The CHM is run by the Health Circle, which is made up of various specialist departments, with the advice of a health manager, and is available to all employees free of charge. Topics of the CHM include:

• monthly training with electrical muscle stimulation

• weekly in-house yoga classes

• courses for progressive muscle relaxation

• a pedometer challenge with 133 employees

• action day “screen workstation”

• non-smoker coaching

• monthly health coaching

• team cooking courses

• flu vaccinations

• Covid-19 vaccinations

Ensuring Healthy Workforce


In Sarnia, an updated Covid-19 policy was introduced in 2021, ensuring compliance with latest provincial regulations as well as provided strict guidelines to both employees and visitors in terms of the protocols. Therefore, the plant maintained its operation with minimum disruption.

In Ganzhou, HSEQ engineers conducted multiple rolling relevant trainings and reviewed the production instances together to make right improvement measures in order to develop and strengthen knowledge and awareness of safety, occupational health, and environmental protection. In the future, this will be our standard training strategy, assisting staff in gaining expertise and resolving any probable issues.

After the first phase of the tungsten powder and tungsten carbide project was completed and accepted in 2014, the following construction in Ganzhou took approximately six years to complete. The second part of the project was completed and accepted in 2021, with the exception of the nano manufacturing line, which was not yet introduced.

Focus 2022Set up own Health & Safety Department in 2022 - 2023

4 Days of Safety

Further education and training of safety officers


Throughout 2021, the world continued to face unprecedented economic and social difficulties due to the prolonged Covid-19 pandemic, while needing to address the environmental issues of everyday life and on-going development. This question of how to maintain environmental protection activities in the context of the Covid-19 pandemic is a difficult one for many organizations and businesses not only in Vietnam but also around the world. Consistent with the theme that “Environment sustainable development is our passport to the future”, MHT continued to maintain and strengthen the management, protection and development of our sustainable business activities globally. Those efforts and achievements were recognized within Vietnam with MHT receiving the title of “Vietnam Sustainable Development Enterprise” for the fourth consecutive year from the Vietnam Chamber of Commerce and Industry (VCCI).

SUSTAINABILITY ENVIRONMENT PASSPORT TO THE FUTURE

78.5%

2.4 ha

01Certificate

6,626 M litters

48%

04

Of wastewater is reused atNui Phao mine

Of land for planting trees,rehabilitating the environment

Of completion ofenvironmental protection

works for MTC

Of wastewater is treated before discharge

Of waste generated isrecycled

for MTC, Goslar,Sarnia, Ganzhou

Certificates of ISO 14001


WATER AND WASTEWATER MANAGEMENT

Water consumption

Year 2018 2019 2020 2021

Total water volume used (M litters) 13,482 12,482 12,136 12,740

NPMC and MTC 11,520 10,683 10,231 10,986

Surface water 2,393 2,576 2,517 2,355

Ground water for domestic 37 36 31 8

Ground water for production 98 0 0 0

Recycle water 8,992 8,071 7,682 8,623

- Water from OTC 2,951 2,574 2,163 2,286

- Water from STC 5,603 4,613 4,415 5,474

- Water from PTP 414 275 443 137

- Recycled water from DP2 24 0 0 0

- Recycled from Cut-off trench 609 662 726

Goslar, Sarnia and Ganzhou 1,962 1,799 1,906 1,754

Surface water 1,820 1,648 1,742 1,599

Water from suppliers 134 142 157 148

Deionized water 8 8 7 7

Water is a critical resource for both our production and life, which needs to be managed and used economically and efficiently. With the mindset of “Water is the core of sustainable development”, the economical use, increased circulation - reuse, and process-controlled wastewater treatment are the approaches that MHT has developed to protect the water resources it uses for the present and future generations.

Water sources for production at MHT include surface water and groundwater (self-extracted or provided from suppliers), deionized water and recycled water. In 2021, the total water volume used by MHT was 12,740 million liters, a slight increase compared to 2020 (12,136 million liters).

MHT’s mineral extraction processes in Vietnam are more water intensive than the operations in Germany, Canada and China, accounting for 86.2% of MHT’s total water use.

In Vietnam, surface water for production activities is extracted from the Cong River under the License granted by Thai Nguyen Provincial People's Committee. At our plants in Germany, Canada, and China, surface water supplies come from local rivers operated by licensed users. In 2021, MHT used 3,954 million liters of surface water (2,355 million liters for NPMC and MTC, 1,599 million liters for HCS's plants), accounting for 31% of the total water use of all plants.

In 2021, eight million liters of groundwater were extracted in Vietnam from GK-03 borehole in the first 5 months of the year to serve the purpose of serving our contractor campsite needs. From June 2021, this facility was decommissioned and the GK-03 borehole was backfilled in accordance with Vietnamese regulations. The amount of groundwater extracted only accounted for 0.06% of the total water use of all plants.

At our factories in Germany, Canada, and China, water was sourced from local rivers, and water in the form of steam and deionized water is also used to supply specific tungsten production stages. In 2021, 155 million liters of water were used there, accounting for 1.2% of the total water use of all plants.

Within MHT wastewater has long been considered a resource, and the reuse of wastewater is considered an effective measure to reduce pressure on water resources, supplement water supply, and make an important contribution to the goal of achieving a sustainable circular economy.

At the Nui Phao processing plant, most of the wastewater from the OTC and STC tailing reservoirs is circulated to the processing plant for reuse. Water that currently cannot be reused is pumped for treatment at the dedicated Wastewater Treatment Station prior to being discharged into the Thuy Tinh stream. Water from our mining activities is also managed within this system.

In 2021, NPMC used 8,623 million liters of wastewater for production, accounting for 78.5% of the total water use in Vietnam (up more than 3% compared to 75% in 2020), accounting for 67.7 % of total water used by all plants.

Like any industrial plant MHT’s operations have measurable impacts on the environment. We choose to reuse wastewater to demonstrate what can be done to minimize damage to the environment, and actively seek new ways to increase our reuse of process waters. At the Goslar site, we are currently investigating whether tungsten-containing wastewater from tungsten reduction can be reused in the raw material preparation process during dissolution. This would also reduce the loss of tungsten powder, which would otherwise be lost in the wastewater.

Surface water

Ground water and other sources

Recycled water for production


Wastewater discharge quality and quantity

Overview of the wastewater treatment plant and DP2 outlet at NPMC

Discharge Point DP2

MHT’s factories are all granted licenses to discharge wastewater according to the regulations of the host-country or have contractual agreements with an approved third party (industrial zone management board) to treat our wastewater before discharging into the environment.

In 2021, the total amount of wastewater discharged was 6,626 million liters. Of which, Vietnamese operations accounted for 91.4% of the total wastewater volume. Wastewater is treated and monitored to meet the standards of the host country before being discharged into the environment.

In Vietnam, our wastewater sources (production wastewater, domestic wastewater), contaminated rainwater are collected into reservoirs, then pumped for treatment at the wastewater treatment plant with capacity 36,000 m3/day. At the discharge points, NPMC operates automatic monitoring stations to monitor the wastewater quality before being discharged into the environment. The treated wastewater has reached the allowable limit according to the discharge permit issued to NPMC by the Ministry of Natural Resources and Environment. In 2022, NPMC plans to build and commission an additional physicochemical treatment system with a capacity of 400 m3/h to enhance the treatment capacity and support for the existing Wastewater Treatment Plant.

Total waste-water discharge

1,000

2,000

3,000

4,000

5,000

6,000

7,000

M litters

2018 2019 2020 2021

NPMC (including MTC) Goslar Sarnia Ganzhou

At our HCS Goslar facility, groundwater is managed to the plan as agreed with local authorities that “No contaminated groundwater leaves the factory premises”. This means that groundwater is extracted from the wells specified in the plan and then treated using a combination of activated carbon and ion exchangers prior to being discharged.

In the scope of water / wastewater, HCS in Germany has a contract with Chemitas to treat and release wastewater. The permit for direct discharge of rainwater and wastewater via the Central Wastewater Treatment Plant is held by Chemitas. For indirect discharge into the sewerage system, there is a contract between HCS Tungsten GmbH, HCS Infrastructure GmbH and Chemitas, which performs the operator duties. An official exemption from the indirect discharge permit is currently being prepared. The amount of wastewater is not measured directly but calculated by the purchase of fresh water and chemicals.


WASTE MATERIAL MANAGEMENT

The types of waste materials generated from the mine are mainly in the form of topsoil, waste rock from mining activities and tailing from processing activities. These materials are classified and managed by NPMC according to the process to avoid the risks of pollution as well as ensure that the beauty is not affected.

Waste materials 2018 2019 2020 2021

Renewable materials (m3) 1,177,317 1,319,299 987,051 960,883

Waste rock for construction of TSF wall-dam 924,832 1,135,775 482,233 699,031

Soil for TSF dam construction 198,305 111,552 112,675 129,694

Waste soil and rock for other civil projects 54,180 71,972 392,143 132,158

Non-renewable materials (m3) 4,768,241 4,813,180 3,963,178 2,439,943

Clean waste soil and rock dumped into Waste Dump 3,896,736 3,821,551 3,312,552 1,718,013

High sulfide waste dumped in STC 871,505 991,629 650,626 721,930

Tailing (ton) 3,489,328 3,490,988 3,566,034 3,442,556

OTC tailing 2,035,201 2,166,363 2,154,965 2,104,799

STC tailing 1,454,127 1,324,625 1,411,069 1,337,757

Renewable materials

Non-renewable materials

Clean waste soil and rock are used as construction materials for internal mine works (TSF wall-dam construction, road repairs, leveling), the remaining material is disposed into dedicated waste dumps. In 2021, NPMC reused 960,883 m3 of clean waste soil and rock to construct TSF wall-dam and other civil projects.

At the Nui Phao mine site, clean waste rock that has not been reused is stockpiled in the dedicated North and South waste dumps of the open-pit, waste rock with potential for acid generation (waste rock with high sulfide content) is stored in sulfide ore tailing reservoir (STC) to prevent oxidation of the sulfide that generates acid.

In 2021, mining activities generated 2,439,943 m3 of waste soil and rock, of which 1,718,013 m3 of clean waste soil was placed into the waste dumps and 721,930 m3 of soil and rock with high sulfide content were placed into the STC. NPMC's processing plant produced 1,337,757 tons of sulfide tailings which were stored in the STC and 2,104,799 tons of oxide tails stored in the OTC.

At our HCS sites, which are well established manufacturing sites with less frequent site disturbance, the issue of renewable and nonrenewable materials is much more limited and is still managed by local regulations as and when ground activities occur.

Using waste rock to build dams for OTC and STC ore tailing reservoirs

Dumped waste soil and rock at the Northern Waste Dump


WASTE MANAGEMENT

In the context of increasing climate change, thinking about waste management has changed, from “disposal” to “management” then “integrated management”, from “waste” to “consider waste as resources”, from “linear economy” to “circular economy”. Accordingly, the integrated management of solid waste is prioritized to apply, including prevention, reduction, classification, collection, reuse, recycling and final treatment. Integrated solid waste management helps to protect human health, protect the environment, save resources, adapt to climate change and towards sustainable development.

Practice shows that the effectiveness of waste management comes from strict adherence to classification regulations. Across MHT, waste segregation is done at source. In 2021, the total amount of waste generated and recycled and treated was 5,704 tons, of which recycled waste accounted for 48% of the total amount of waste generated. The recycling rates of all kinds of waste at HCS's factories is very high (75%).

In Germany, the handling of waste is regulated by law via the Closed Substance Cycle Waste Management Act. Here, the order of waste prevention, preparation for reuse, recycling applies, other recovery, in particular energy recovery and backfilling, disposal. The Goslar site focuses in particular on points 1 and 2., because production by-products are usually very rich in valuable materials (especially metals other than tungsten) which in turn can be used as raw materials by other companies. This significantly reduces the volume of our waste and results in the recycling rate being at a very high level, 73% in 2020 and 79% in 2021. A contribution to the high recycling rate was also made by the increased recycling of filter dusts, which are now returned to production as a raw material instead of being disposed of. Percentage of types of waste generated

Total of waste volume (ton) 4,926 4,966 5,152 5,704

Recycling rate total 51% 54% 45% 48%

NPMC and MTC 2,893 2,911 3,878 3,919

Non-hazardous waste 1,349 725 502 524

Hazardous waste 562 1,185 1,945 2,002

Recycled waste 983 1,001 1,431 1,394

Recycling rate 34% 34% 37% 36%

Goslar, Sarnia, Ganzhou 2,056 1,274 1,457 1,785

Non-hazardous waste 85 85 55 110

Hazardous waste 269 296 98 341

Recycled waste 1,703 893 1,304 1,334

Recycling rate 83% 70% 90% 75%

2018 2019 2020 2021

11%

41%

48%

Non-hazardous waste

Hazardous waste

Recycled waste


ENERGY AND GREENHOUSE GAS EMISSION

Energy consumptionBeing well aware that energy-saving and the efficient use of energy is the foundation for sustainable development, energy-saving solutions are always sought and promoted at factories across MHT globally.

Our Goslar plant is certified to ISO 50001 - Energy Management Systems - demonstrating its commitment to continuous improvement in energy-related performance. However, as part of the matrix certification of all HCS sites, energy targets and continuous improvement have also been implemented in Sarnia and Ganzhou. In Sarnia four new Nitrogen Flow Meters across the plant’s distribution network were installed to get an improved understanding regarding the amount of nitrogen consumed in the different key areas across the distribution network. The new instruments allowed an in-depth analysis of nitrogen consumption across the network leading to significant, lasting advantages for H.C. Starck throughout the nitrogen billing process with TODA. In Vietnam, the Energy Management Board also plans to implement the application of an energy management system according to ISO 50001 standard in 2022.

In 2021, the total energy consumption was 1,309,427 GJ, an increase of 1.2 times compared to 2020. The increased consumption, which is shown here in absolute values, is mainly due to the coronavirus pandemic, which led to a significant reduction in production at all of the Group's plants in 2020. In order to achieve better comparability of the values, it is planned to collect and issue specific data in the future.

Total of energy consumption (GJ) 1,260,757 1,165,386 1,084,324 1,309,427

NPMC and MTC 883,019 801,773 753,918 907,147

Power 615,387 609,530 594,734 674,811

DO 33,054 42,685 45,054 53,379

Gasoline 2,144 2,186 1,549 1,700

Coal 232,435 147,373 112,581 177,256


Power 140,740 156,887 150,583 174,856

Natural gas 213,625 186,735 161,543 207,493

DO 22,420 19,020 17,282 18,783

FO 953 971 998 1,148

Year 2018 2019 2020 2021

Greenhouse gas emission

The main greenhouse gases (GHG) are carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). The gases with low concentrations but with high potential for greenhouse gases are hydrofluorocarbons (HFCS), perfluorocarbons (PFCS), sulfur hexafluoride (SF6) and nitrogen and trifluoride (NF3). Our factories conduct such inventories of greenhouse gas emissions according to the guidelines of the Intergovernmental Panel on Climate Change (IPCC) and convert them into tons of CO2 equivalent (CO2eq).

In Vietnam, Decree No. 06/2022/ND-CP dated 07/01/2022 Regulations on mitigation of greenhouse gas emissions and protection of the ozone layer takes effect from January 7, 2022. Accordingly, responsible businesses must inventory GHG so that the Government can progressively implement emission reduction regulations. The GHG inventory at MHT Vietnam since its operation until now will be the foundation for us to implement the above regulations as part of our carbon neutral journey.

Direct greenhouse gas emissions are generated from the use and consumption of gasoline, natural gas, diesel, fuel oil and coal for vehicles, equipment, boilers and backup generators. In 2021, we emitted 36,282 tons of CO2, an increase of nearly 1.4 times compared to 2020.

Direct GHG emissions (scope 1)

Indirect greenhouse gas emissions are generated from the use of power for all production and operational activities of factories. In 2021, we emitted 170,012 tons of CO2, an increase of more than 1.1 times compared to 2020.

Indirect GHG emissions (scope 2)

Total of GHG emission volume (ton of CO2eq) 197,473 187,592 178,696 206,294

Total of direct GHG 41,341 31,142 25,990 36,282

Total of indirect GHG 156,132 156,450 152,705 170,012

NPMC and MTC 172,223 162,409 155,318 181,727






Year 2018 2019 2020 2021

Total of GHG emissions volume(tons of CO2)

1,000

50,000

100,000

150,000

200,000

2018 2019 2020 2021

Indirect GHG emissions (SCOPE 2)

Direct GHG emissions (SCOPE 1)


CO2 neutrality - an inevitable trend of sustainable development

The world is experiencing resonance effects at the worse level and scale than ever from three disasters, including the Covid-19 pandemic, climate change and natural resource scarcity, leading to major consequences on many aspects of the current and future life. have been the “warmest” period recorded on earth, especially the year 2020 witnessed the highest level of carbon dioxide (CO2) ever recorded in our atmosphere. The development of green industries towards the goal of carbon neutrality, and actively reducing the need for fossil fuels is an inevitable trend of sustainable development.

To respond to climate change, the United Nations Climate Agreement was adopted in Paris in 2015. Its goal is to keep global warming well below 2°C, but better below 1.5°C through further measures. This includes efforts to reduce emissions of climate-damaging gases to "net zero" as far as possible by 2050. Approximately 190 countries have ratified this agreement, including Vietnam, Germany, Canada and China.

Meeting the internationally recognized 1.5°C climate target and the impacts associated with climate change, such as the increasing scarcity of drinking water, requires all of our efforts. To this end, we are striving to achieve CO2 neutrality according to greenhouse gas (GHG) protocol and locally defined timelines, as well as to significantly reduce freshwater consumption and continuously improve our environmental and energy performance.

We have therefore adopted a corresponding climate policy. This states, among other things, that MHT will reduce our carbon footprint (Scope 1 and 2) in accordance with country requirements by further developing our processes, using new technologies, and using renewable energies. We aim to be CO2 equivalent neutral in 2045. This relates to all activities that we can influence ourselves.

As a first measure, the Goslar site has switched its electricity supply to so-called "green" electricity, thereby saving approx. 6300 tons of CO2 per year since 2021. Further measures, such as the replacement of steam-heated crystallization by an osmosis process (start-up Q4/2021), will enable the CO2 footprint to be significantly reduced further from 2022. At the Sarnia site, the switch to an electricity supplier whose CO2 footprint in energy production is significantly lower is being discussed.

The first measure to achieve climate neutrality is to reduce actively our CO2 footprint. However, we are aware that we will not achieve CO2 neutrality according to the GHG in this way. An internationally recognized method to further minimize its footprint is to compensate remaining CO2

emissions. This is made possible through the calculation of Carbon credits to invest in projects that actively reduce CO2 emissions around the world. This is the fastest way to reduce CO2 in the air and the only way to be carbon neutral.

Based on the general framework of the United Nations Sustainable Development Goals and the Paris Agreement on climate change, MHT has taken the initial approaches for the journey towards carbon neutrality:

Calculating the amount of carbon absorbed from environmental rehabilitation activities and the area of replacement plantations in Dinh Hoa district, Thai Nguyen province

Since the Nui Phao mine was put into operation, the Company has planted dozen hectares of Acacia trees under the environmental restoration and rehabilitation program, which not only minimizes the impact of pollution sources from mining and mineral processing activities but also acts as important carbon absorption sinks.

In addition, the Company will monitor to calculate the amount of carbon absorbed from the area of reforestation in Dinh Hoa district, Thai Nguyen province. Since 2018, the Company has deposited VND 1.5 billion to Thai Nguyen Forest Protection and Development Fund for reforestation of 26,7ha forests which has been compensated for land clearance to implement Nui Phao Project. Thai Nguyen Forest Protection and Development Fund has used this amount of money to plant 50ha of protective forest and special-use forest at Bao Linh, Dinh Bien and Phu Dinh commune in Dinh Hoa district, Thai Nguyen province.

The trees that are planted and protected in this forest area are cinnamon, green ironwood, flower slices and regenerated woody plants, which are currently growing and creating good canopy. The Company has coordinated with the Thai Nguyen Forest Protection and Development Fund to collect information, calculate the carbon sequestration capacity through the planted forest area, and also work on researching investment cooperation programs on afforestation in the future in Thai Nguyen province. Based on initial calculations, the amount of CO2 accumulated from the planted forest area under the plan of annual environmental rehabilitation and restoration and the area of replacement planted forest in Dinh Hoa district is about 5,736 tons. Carbon offset by planting as a bridge solution needs to be focused on towards the goal of carbon neutrality and climate balance.

2045Net-Zero Emissions

Developing a solar farm at Nui Phao mine

Green power and clean energy are the necessary solutions to improve carbon neutrality. Currently, NPMC has been working with a number of partners to find opportunities to develop and install solar farms at Nui Phao mine. This project has great significance and feasibility to be implemented in alignment with the Company's energy consumption strategy in the next 5 to 10 years.

The idea of investing in afforestation to sell Carbon credits

Carbon Credit is a license issued by a government or other regulatory agency that allows the credit holders to emit GHG (converted to CO2). Each carbon credit is equal to one tonne of CO2 equivalent, carbon credits can be exchanged, bought and sold between parties participating in the carbon market. Accordingly, forest carbon credits are determined by calculating the ability to absorb CO2 in the atmosphere through the biomass of the forest. Vietnam is identified as one of the countries with great potential to sell forest carbon credits.

On October 22, 2020, Vietnam signed an agreement with the Forest Carbon Fund (FCPF) through the World Bank. Vietnam is expected to sell about 10.3 million tons of CO2 through its REDD+ program (Program to reduce greenhouse gas emissions from deforestation and forest degradation) in the period from 2020 to 2025 in 6 provinces in the North Central region. According to calculations, each year Vietnam can sell up to 50 million forest carbon credits, earning trillions of dong. Up to now, Vietnam has not had business investment projects, buying and selling forest carbon credits from the REDD+ program between foreign businesses and Vietnamese organizations and individuals. Thus, the Government has approved of Quang Nam province implementing a pilot project on trading forest carbon credits from the REDD+ program, with the pilot period from 2021-2025. The success of the pilot project will bring huge opportunities to other provinces in Vietnam.

Currently, Masan High-Tech Materials is closely monitoring the development and implementation progress of the carbon credits market in Vietnam, as well as completing the legal framework to guide this activity so that the Company will be ready to take the lead in participating in the carbon credit market, contributing to the common goal of reducing greenhouse gas emissions and protecting the environment.

1

2

3

Caculate the amount of carbon absorbedCalculattion of carbon sequestration from envi-ronmental rehabilitation and replacement plan-tations of Nui Phao project: 5,736 tons.

Opportunity to develop solar farm at Nui Phao mineWorking with partners to find opportunities to develop and install solar farms at Nui Phao mine.

The idea of planting forests to sell forest carbon creditsClosely monitor the roadmap and legal fram-work for investment participation.


ENVIRONMENT REHABILITATION

In 2021, at our operations in Vietnam MHT continued to rehabilitation in areas where land work has been completed, and monitored and maintained the renovated and restored areas from previous years in order to reduce erosion, improve soil and improve ecosystems.

During the year, we completed the environmental rehabilitation of approximately 2.4 hectares in waste rock dumps. Many different types of plants and materials are used to increase efficiency in environmental rehabilitation. In 2021, NPMC planted about 4,000 Acacia hybrids; sowed 160 kg of grass seeds and used 7,080 kg of fertilizer for the new planting and care of planted trees from the years 2018, 2019, 2020. The total area that has been rehabilitated by the end of 2021 is 61,62ha.

In addition, we also commenced trial planting of native hardwood trees to survey and evaluate the possibility of using these trees for future environmental rehabilitation programs.

In Goslar MHT is obliged to remediate the contaminated site. The remediation is carried out in accordance with a remediation plan declared to be binding under the remediation goal "No contaminated groundwater leaves the factory premises." For this purpose, the extraction and treatment of groundwater by means of activated carbon and ion exchangers takes place from the wells specified in the remediation plan.

4,000Acacia hybrids

160 kgof grass seeds

61,62 harehabilitated area

Afforestation in dump slopes at Nui Phao mine in Vietnam

ENVIRONMENT COMPLIANCE AND TRANSPARENCY

In 2021, Vietnam wetook 8,148 environmental samples, including: 266 surface water samples, 755 ground water samples, 6,704 wastewater samples, 282 solid waste samples, 48 soil and sediment samples, 14 environmental samples ambient air, 41 emission gas samples and 38 noise measurements in 24 hours.

Automatic monitoring stations for wastewater, ambient air, and vibrations are also operated to ensure timely provision of data at all times for environmental quality control and assessment.

In Goslar, the wastewater is monitored by online analytics in the area of the central wastewater treatment plant. In addition, the limit values are monitored by the responsible water supervisory authority. In 2020, 38 samples were taken by the authority, 25 samples in 2021. In a few cases, limit values were exceeded. These were analyzed and, where necessary, measures were taken to remedy the situation.

For monitoring the emissions, Chemitas operates a total of 16 measuring points to monitor the situation at the entire Goslar site (MPO) and to intervene if necessary if anomalies or exceedances should be detected, as the official measurements are not published promptly.

Of these, 9 are located on the MPO site and 7 off-site in the immediate vicinity. The limit values (annual mean values) according to TA-Luft (4.5.1 TA-Luft 2021) apply to all assessment areas that are located outside the plant premises (MPO). Sampling and analysis are carried out on a monthly cycle (monthly averages).

In 2021, within Vietnam MHT submitted a total of 06 reports, 04 annual environmental reports, 02 reports on annual water resources.

In addition within Vietnam, in order to provide timely information on the implementation plan of the recommendations of MONRE (according to the 2017 inspection conclusions), in 2021, we submitted 04 updated quarterly reports on the implementation progress to VEA, DONRE and Ha Thuong DPC.

Through two periodic inspections by the Ministry of Natural Resources and Environment in 2021, the Company's efforts and efforts for environmental protection have been recognized and appreciated. In particular, the lining PTP pond with HDPE membrane was completed 02 months ahead of the commitment deadline.

In Germany, HCS submitted a total of 14 reports to the various Federal and State Ministries covering Hazardous waste, emissions, inspections, and accidents. A further 7 reports are required on a 3-4-year cycle as per the applicable regulations again covering emissions, waste or inspections. In 2021, two reports for six emission sources were prepared.

Environment monitoring Reporting and information transparency

At MTC, Goslar, Sarnia and Ganzhou, the environmental management system according to ISO 14001:2015 standard continues to be maintained.

Completed the PTP pond lining

PTP pond


In 2018, MTC Company set up a project to increase production capacity which was approved by the People's Committee of Thai Nguyen province. Since then, in accordance with the approval, the factory has focused on implementing improvements and measures to optimize production, improve product quality and reduce waste generated. In addition, a number of environmental protection works have also been invested, upgraded and renovated such as general waste storage, hazardous waste storage, domestic wastewater treatment tanks, etc. Wastewater and exhaust gas treatment continues to be maintained by the Company.

After completing the project, MTC Company conducted trial operation of environmental treatment works from the end of June to the beginning of October 2020. The purpose of the trial operation is to assess the treatment efficiency of environmental protection works and have a plan to adjust and improve if not suitable. The results of monitoring wastewater and emissions during trial operation show that the environmental treatment works of MTC Company are operating effectively, the environmental parameters to be treated meet the permitted standards.

After a period of trial operation, the above environmental treatment and protection works have been physically checked by the Department of Natural Resources and Environment, confirming and appreciating the Company's investments and efforts in the environmental protection. On April 28, 2021, MTC Company received the Certificate of Completion of the Environmental Protection Works issued by the People's Committee of Thai Nguyen Province to confirm the above environmental protection contents.

Obtaining the Certificate of Completion of Environmental Protection Works of MTC Company is not only a matter of complying with the provisions of the law, but also making a common contribution to sustainable development, strengthening the foundation of compliance environment regulatory of MHT.

Certificate of completion of environmental protection works for MTC Focus 2022

• Adopt more energy efficiency programs including waste heat reuse programs

• Complete all requirements in compliance with the EIA report approval and current regulation

• Environment protection works completion certification for TSF-SP lining

• Approval for EIA report of New Mining License

• Establish the EIA report of Tungsten recycling project

• Research project on afforestation to sell forest carbon credits

• Increased recycling of production filter dusts

• Increase use of renewable generated electricity across the organization

• Install charging points for electric vehicles in some locations


SUSTAINABILITYCOMMUNITY


• Contributed VND 1.7 billion to 12 community de-velopment projects.

• Total 39 households accessed preferential loan from this fund.

• 97% of 39 households improved their own house-hold economic conditions.

• Offered free clean water supply to 101 households with VND800 million.

• Supported VND400 million for rural clean water program in Ha Thuong commune under the World Bank loan project.

• 11 single moms with disadvantaged circumstanc-es accessed model of livestock raising and castle breeding – 100% of chicken developing well.

• Organized 14 training courses and one study tour for 899 households to improve their capacity in farming, manufacturing and processing of VietGap tea, organic tea and fruit-trees, beekeeping, etc.

• Free 200 Tet gifts for poor households, equivalent to VND100 million.

• Offered scholarships and gifts to 70 disadvantaged students totaling VND70 million.

• VND400 million donated to the Fatherland Front in joining hands with Communities to beat the Covid-19 pandemic.

Economic Recovery Fund

Health, Water and Sanitation

Micro-Livelihood Model for vulnerable people groups

Humanitarian and charity activities


ECONOMIC RECOVERY FUNDIn 2021, MHT worked with the Dai Tu district Social Policy Bank, trust organizations of Ha Thuong, Hung Son town, Phuc Linh, Tan Linh and Cat Ne communes to verify 39 households’ eligibility for loan capital to implement the household economic development models, typically: cattle and poultry farming, fruit-tree cultivation, tea newly planting and sustainable cultivation, etc., with a total amount of VND 1.7 billion.

Nhat Thuc Tea Cooperative – Khuu 2 hamlet, Phuc Linh commune

Khuu 2 hamlet, Phuc Linh commune is a Project-affected household. In 2021, the Cooperative was entitled to borrow 50 million from the Economic Recovery Fund of MHT to invest in purchasing tea products from the farmers in Phuc Linh commune and create jobs for 15 disadvantaged women (ethnic minority people and the elderly) with a stable income of VND 4.5-5 million per month. The money obtained from the Loan Fund at the preferential interest rates aided the Cooperative in providing support and creating jobs, as well as improving the living standards of nearby employees.

39 1.7households VND billion

ECONOMIC RECOVERY

VietGAP tea

Two VietGAP safe tea cooperative groups of 51 households with a total area of 14.3 ha was established in Khuon Ga 2 residential group, Hung Son town and VietGAP Khuu 3 tea cooperative group in Phuc Linh commune with the support of Nui Phao Mining in the technical training and economical tea irrigation system totaling more than VND 60 million (70% funded by the Company, 30% counterpart capital from the people per ha).

Clean vegetable

In 2021, the Company continued to support Hung Son Clean Vegetable Cooperative in getting VietGAP certificates for a total area of 5.6 ha/34 households. With the positive outcomes of the wells for watering the safe vegetables in the previous years, Nui Phao Mining continued to sponsor nearly VND 40 million for 5 additional wells for Hung Son town safe vegetable cooperative, bringing the total number of wells to 19/36 hectares.

Agricultural Extension

Helping local farmers adopt VietGAP tea farming models

Supporting local people in safe vegetable cultivation

Organic Tea

Implementing the organic tea farming model in the communes of Tan Linh and Phuc Linh with a total area of 12 ha for 40 households, in 2021, the Vietnam Certification Center (QUACERT) after inspection and assessment granted a certificate for the area of 3.64 ha eligible for organic tea conversion in accordance with TCVN 11041-1:2017; TCVN 11041-2:2017; TCVN 11041-6:2018, the remaining one continues to cultivate and will be assessed in 2022. Besides, the Company supported nearly VND 50 million for the 4.0 hi-tech tea spray and irrigation model.

Micro-economic model

With the help of VND 45 million from the micro-economic model, 13 poor women in Ha Thuong commune and Hung Son town are able to carry out the egg-laying model.

No. Content of Training/Study VisitNo. of

coursesNumber of

participants

1Training on farmer’s daily farm logs for Vi-etGAP 2 Tea Cooperative Group, Khuu 3 hamlet, Phuc Linh commune

1 20

2Training on farmer’s daily farm logs at Viet-GAP 2 Cooperative Group, Khuon Ga resi-dential group, Hung Son town

1 30

3Training on farmer’s daily farm logs at Viet-GAP vegetable Cooperative, Xuan Dai resi-dential group, Hung Son town

1 30

4

Communication on classification of waste at source and recycled waste collection to raise fund in Trung Hoa residential group, Hung Son town

1 60

5Study tours to the tea cultivation model in Khe Coc commune, Phu Luong district, Thai Nguyen Province

1 20

6 Training and launching the apple snail farming model 1 50

7 Training on the model of tourist reception at destination 1 60

Total 7 270

Helping local people raise black snails as part of the economic restoration program Support the model of beekeeping as part of the economic restoration program with local people


In 2021, coordinated with Human Resources Department to hire 15 local people affected by Nui Phao project.

There was little change in the local supply service models in 2021. Apart from supplying Jumbo bags for Nui Phao Company, Anh Duong Packaging Company received a lot of orders from Japan and South Korea. To thank for MHT’s supports over the years, Anh Duong Packaging Company donated hand sanitizer dispensers, sanitizer, and medical masks valued at about VND 100 million to repel the spread of Covid-19.

Recruitment support

Local supply service


ACHIEVEMENTS 2021

Maintained and expanded VietGAP tea area of 5ha in Hung Son town.

Continued to support and monitor the 12-ha organic tea project in Phuc Linh and Tan Linh communes (2019-2023).

Expanded micro livelihood models for 11 most disadvantaged/ vulnerable households.

Further improved the performance and capacity of over 100 local supply groups and companies.

Actively participated in charitable and social activities in Dai Tu district and Thai Nguyen province.

Supported in the fight against Covid-19 (VND 400 million).

Blood donation program at MHT (total 254 blood units donated).

World Environment Day: Coordinate with Environment Department in raising public awareness about waste classification to clean up the world and support garbage trolley and dustbins valued at VND 75 million in 2 communes near Nui Phao project.

Responding to the Vietnam Fatherland Front Committee's call for "everyone to cooperate in Covid-19 prevention and control", Masan High-Tech Materials donated Thai Nguyen province VND 400 million; supported the local communes with medical equipment, supplies and other activities in Covid-19 prevention and control, worth VND 80 million.

On the occasion of Mid-Autumn Festival, MHT presented gifts to more than 5,000 children in 47 hamlets of 4 affected communes, town (Ha Thuong, Phuc Linh, Tan Linh, Hung Son communes, Dai Tu district) with a total amount of VND15 million. This is one of our annual activities to show the corporate social responsibility to the local community. Especially, this is an opportunity to strengthen the long-term relationship between the Company and the local authorities and people, as well as show the caring for the children at the project-affected area.

On the occasion of Vietnam’s War Invalids and Martyrs Day (27/7), Masan High-Tech Materials had a lot of practical and meaningful activities to show gratitude to families of war invalids, martyr and

persons with meritorious service to the revolution across Dai Tu district area such as offering incense in tribute to the heroes and martyrs at the July 27 National Historic Site; giving 50 gift sets to wounded and sick war veterans, persons with meritorious service to the revolution and orange agent victims from 6 communes of Ha Thuong, Tan Linh, Phuc Linh and Hung Son town.

Masan High-Tech Materials supported the Study Promotion Fund of the University of Mining and Geology for disadvantaged students with the value of VND 50 million.

Responding to the peak Tet week for the poor in 2022 launched by Thai Nguyen province, Masan High-Tech Materials contributed VND 100 million, equivalent to 200 gift sets for the poor in the communes and towns in Dai Tu, Thai Nguyen (VND 500,000 each set). The MHT’s Board of Directors also supported VND 100 million for construction of 02 great solidarity Houses and VND 50 million for the public CCTV program of Dai Tu district.

In 2021, provided clean water for 386 people of 101 households in hamlets 2 and 6 Commune, Ha Thuong commune, totaling VND 800 million.

CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES


At Masan High-Tech Materials, the transparency mechanism has always been maintained, improved and developed in order to exchange two-way information between Company and the stakeholders, particularly the local communities. Therefore, the community-related activities are conducted in a transparent manner in the spirit of cooperation and result-oriented development in 2021 as follows.

COMMUNITY TRANSPARENCY

992

5917

54

information items published with 107 contents

meetings, field inspection andcommunity consultation with 834 participants

number of visitorsto the Information Center

written complaints resolved


In 2021, the Public Consultation and Disclosure Plan (PCDP) continued to prove itself an effective two-way communication between the Company and stakeholders, particularly local communities. The community relation team actively engaged with internal and external stakeholders to maximize information accessibility opportunities for local people and timely address their concerns. Due to the impacts of Covid-19 pandemic, some public consultation and information disclosure activities were restricted and will continue to conduct in the coming year.

In 2021, there were 992 information items published with 107 contents and 17 visitors to the Information Center. There are numerous channels for local communities to access to the information of the Company, of which the Information Center is remained easy-to-approach channels for community as they can walk in or make a phone call due to the impact of Covid-19 pandemic to talk about compensation and relocation inquiries, environmental impact concern or just to get accurate and update information about employment, casual job opportunities and other issues.

During the year, the community relation team conducted 59 meetings, surveys and community consultation with 834 participants. This is the result of the community consultation and field investigation with the goal of determining the needs for infrastructure improvement, economic development, environmental sanitation, and health care for the surrounding communities. Such meetings, field investigation also help the Company further understand the needs and concerns from community to provide the warning measures to mitigate the environmental impacts and timely resolve their concerns.

PCDP - an approachable communication channel for communities

At MHT, a variety of channels to disseminate information were deployed with the aims of giving people the information they need to participate in an informed manner. Stakeholders, particularly project-affected communities are provided and exchanged with two-way communication through channels such as Public Consultation and Disclosure Plan (PCDP), complaint and grievance mechanism, information corners in the community, meetings, dialogues, survey, mine site visits, information center, company’s quarterly and annual publication. The channels also enabled us to gain valuable insights into what we do well and where we need to improve.

Diversified Information Disclosure Channels

Information disclosure by year (2011-2021)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Number of information disclosure

Visitors to Information Center in 2021

300

200

100

02020

213

17 86 0 3

2021 Q I Q II Q III Q IV

Number of meetings, surveys and community consultation in 2021

1.500

1.000

500

059107 18 1415

21212

174320

128

834

1.306

Total 2021

Total 2020

Q I Q II Q III Q IV

Number of meetings Number of participants

During the 2021, we received 54 written complaints all of which were forwarded, connected to relevant departments/team within the company as well as required involvement of local authorities to address the concerns. In order to reduce the complaint and grievance from community, the community relation team seek to proactively engage with relevant internal departments to regularly inspect the areas of the Project and surrounding communities to timely provide measures to minimize the impacts. The consultation is also strengthened with the involvement of community to address their concerns or queries in a timely manner. However, during the year, there were several repeated cases which required involvement of local authorities and regulators at all levels to address. Concerns about environmental effect were expressed by locals in hamlet 6 of Ha Thuong commune, while relocation and compensation requests were made by residents in hamlets 2, 3 and 4 of Ha Thuong commune in prior years. These concerns have the potential to impact communities and develop into far-reaching stakeholder opposition to our activities if not handled properly. Thus, the Company seek to actively engage with internal departments and governmental functional agencies to address these concerns in a timely manner.

Complaint and Grievance Resolution

MHT in Vietnam

The Goslar site borders on an area with mixed development including residential areas and industrial plants. Therefore, the neighborhood is equally as important stakeholders of H.C. Starck Tungsten GmbH as its own employees or employees of other companies on the site of the Metallurgical Park Oker (MPO). In 2020, a total of 7 nuisances due to noise, odors or clouds of smoke/steam were reported by residents from the neighborhood or by employees on the plant premises, which were attributable to the production of H.C. Starck Tungsten GmbH. All occurrences were investigated and appropriate measures were taken if necessary. After a significant decrease in the number of complaints in 2020 compared to 2019, this number was even lower in 2021. In total, only 4 complaints, which could be assigned to incidents at H.C. Starck Tungsten, were registered for the reporting period.

The other two plants of ours in Sarnia and Ganzhou are located in purely industrial areas. In both cases there were no complaints from neighbors or other third parties.

H.C. Starck

Complaints and grievance 2019 - 2021

6056

65

5456

65

54

40

20

02019 2020 2021

Number of received complaints

Number of resolved/ on going complaints


HCS COMMUNITY DEVELOPMENT

H.C. Starck Tungsten GmbH, as an important and well-known company in the region, is aware of its social responsibility, but also competes with other companies on the labour market for skilled workers.

To get young people interested in chemistry at an early age, we use our own equipment to support chemistry lessons at schools during the so-called “discovery days”, invite school classes and student groups to the plant and sponsor the Chemistry Olympics at a university. We actively participate in the so-called “Future Days”, where school children can spend a day getting a taste of business areas. We support schools with donations in kind. For example, protective glasses for chemistry lessons.

Regarding academia, HCS sponsors the H.C. Starck Tungsten-Award for outstanding theses in the fields of solid-state chemistry and materials research. The dissertation award is granted biennially by the German Chemical Society’s “Solid-State Chemistry & Materials Research” Division.

In Goslar, Germany

Educational support

Winners of the H.C. Starck Tungsten-Award 2021 Operations supporter Ahmet Kaba hands over 350 FFP2 masks to the local primary school’s head teacher

The close proximity of the Goslar site means that we bear a special responsibility for our neighbours. We have developed an emergency management system which, in addition to averting danger, places particular emphasis on providing comprehensive and transparent information to those affected. Information material on how to act in the event of an emergency and contact addresses have been distributed. We are pleased to invite all interested parties, but especially relatives and neighbours, to an open day on the plant premises next year again so that they can find out about our work on site. We also invite people who feel disturbed by noise or odours from HCS production to explain the causes and present our measures to prevent further nuisance.

While some local community events could still not be carried out in 2021 due to the SARS-CoV-2 pandemic, HCS plans to resume its engagement once the situation allows. In the meantime, HCS continued to donate FFP-2 masks for the benefit of the community, e.g. to Goslar’s food bank.

Community communication transparency

Prevention and management of Covid-19MHT CEO Craig Bradshaw and HCS CEO Hady Seyeda at the tree

planting team event

The company donated to a local association that engages in reforestation. The donation is to provide for the planting of a total of 1,500 trees. In a related team event that was organized by HCS’ Sustainability Team, employees and their family members joined hands in planting some hundreds of trees themselves, too.

Donation for tree planting


Below are the several projects and activities H.C. Starck in Sarnia supported and/or sponsored in the city and the region in 2021.

The Inn of the Good Shepherd is a local charity that provides food, clothing and shelter to the working poor, the unemployed and the homeless. Employees donating food and cash receive draw tickets for an opportunity to win prizes which are sponsored by both companies. The company with the highest fundraising total per employee wins the coveted Golden Can trophy. This is a joint fundraising event between TODA Advance Materials and H.C. Starck. In total, around 150 food items and $500 were donated in the past two years.

The Kinsmen is a local charity that hosts the Santa Claus Parade every year. The parade typically consists of 40 floats and a number of large marching bands. This a major event that is attended by thousands of people from Sarnia and surrounding areas. This showcases the involvement of the company in local community events. HC Starck is a major sponsor of the float Santa Clause rides on, which gets the most attention during the parade, thereby maximizing the company’s exposure in the community.

Set-up of annual light display in central community park. The Celebration of Lights is a spectacular display in which the Sarnia- Lambton county is set aglow under a blanket of illuminated lights. This event is set up each year and attracts thousands of people from Sarnia and the surrounding areas. Ongoing sponsorship of the event and set up of our own display to enhance the company’s profile as an active and engaged participant in community events.

Employees are given the opportunity to the apply to H.C. Starck for sponsorship to benefit their local team or club. The name of the company becomes more widely known in the community, both as a sponsor of local sporting activities and a potential employer. This also provides an opportunity to under privilege children to participate in competitive sports.

Adopt-a-Family is a project where local businesses, families, churches, service clubs and individuals are paired with a family that cannot afford to provide their children with Christmas gifts. The children provide a “wish-list” for Santa and receive their gifts on Christmas morning.

In 2021, H.C. Starck in Sarnia donated money in order to buy Christmas gifts for under privileged children in the community, including eight children from two families. Through this act, we provide employees with an opportunity to be actively involved in supporting a local charity and under-privileged children.

In Sarnia, Canada

Christmas Food Drive - onsite for Inn of Good Shepherd

Santa Clause Parade Sponsor

Celebration of Lights

Little League Sponsorships (Hockey and Baseball)

“Adopt- a-Family” Christmas Gifts - the Inn of the Good Shepherd


Focus2022

• Support and successfully develop the organic tea project in Tan Linh commune.

• Maintain and expand the VietGAP tea area in the project-affected communes.

• Connect, train to improve the capacity of the health care, life skills for the students in Dai Tu district.

• Closely cooperate with stakeholders for re-source optimization and sustainable develop-ment.


FINANCEREPORT

Finance report 175

176

179

180

181

185

187

190

Finance Overview

Statement of the Board of Management

Independent Auditor’s Report

Consolidated Balance Sheet

Consolidated Statements of Income

Consolidated Statements of Cash Flows

Notes to The Consolidated Financial Statements

Masan High-Tech Materials Finance Report176 177

Despite the continuing impact of Covid-19, Masan High-Tech Materials Corporation (“Company” or “MHT”) net business revenue for the year 2021 was VND13,564 billion, a significant increase of VND6,273 billion in comparison with the previous year, mainly resulting from strong demand and pricing of MHT Tungsten products in Q4/2021 and full year consolidation of the HCS business (12 months 2021 vs. 7 months 2020). The Company’s EBITDA of VND3,070 billion, in which HCS EBITDA was VND746 billion whilst the Vietnam based businesses (NPMC and MTC) contributed VND2,324 billion to the overall result. The HCS business contributed significantly to the overall MHT result with an NPAT Post-MI of VND181 billion (inclusive of amortization of goodwill adjustment from acquisition) for 2021. This result vindicates the decision to purchase the HCS business in the early stages of the Covid-19 pandemic in 2020 and sets MHT up well for the future.

MHT has continued to maintain the salaries, bonuses to the employees, fulfill its tax obligations and fees payment responsibilities to the state and provincial budget which amounted to VND778 billion among incurred VND1,142 billion for 2021.

FINANCE OVERVIEW

Some highlights that MHT achieved in 2021

86%

399%

114%

Net revenueincreased by

Attributable net profit increased

EBITDAincreased by

97%

Tungsten (contained)product increased by


CORPORATE INFORMATION STATEMENT OF THE BOARD OF MANAGEMENT

The Board of Management of Masan High-Tech Materials Corporation (“the Company”) presents this statement and the accompanying consolidated financial statements of the Company and its subsidiaries (collectively referred to as “the Group”) as of and for the year ended 31 December 2021.

The Board of Management is responsible for the preparation and presentation of the consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting. In the opinion of the Board of Management:

(a) the consolidated financial statements set out on pages 181 to 241 give a true and fair view of the consolidated financial position of the Group as at 31 December 2021, and of their consolidated results of operations and consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting; and

(b) at the date of this statement, there are no reasons to believe that the Group will not be able to pay its debts as and when they fall due.

The Board of Management has, on the date of this statement, authorized these accompanying consolidated financial statements for issue.

On behalf of the Board of Management


Ho Chi Minh City, 11 March 2022

Enterprise Registration Certificate No.

Investment Certificate No.

Board of Directors

Board of Management

Registered Office

Auditor

0309966889 27 April 2010The Company’s Enterprise Registration Certificate has been amended several times, the most recent of which was dated 11 February 2022. The Certificate and its amendments were issued by the Department of Planning and Investment of Ho Chi Minh City. The first Business Registration Certificate No. 0309966889 was issued on 27 April 2010.

41122000131 2 August 2013The Investment Certificate was issued by the People’s Committee of Ho Chi Minh City to the Company to implement the investment of “Ma San Resources Corporation” which has a term of 10 years from the date of the Investment Certificate.

Mr. Danny Le Mr. Nguyen Thieu NamMr. Craig Richard BradshawMr. Akira OsadaMs. Nguyen Thu Hien

Mr. Nguyen Van Thang

Mr. Craig Richard Bradshaw Chief Executive Officer Mr. Hady Seyeda Deputy Chief Executive Officer (from 12/4/2021) Mr. Stuart James Wells Chief Financial Officer

Suite 802, 8th Floor, Central Plaza BuildingNo. 17 Le Duan, Ben Nghe Ward, District 1Ho Chi Minh CityVietnam

KPMG LimitedVietnam

ChairmanFirst Vice ChairmanMemberMember (from 12/4/2021)Independent member (from 12/4/2021) Member (until 12/4/2021)


Code Note 31/12/2021 1/1/2021

VND’000 VND’000

ASSETS

Current assets (100 = 110 + 120 + 130 + 140 + 150)

100 10,576,736,330 9,756,298,985

Cash and cash equivalents 110 5 1,043,789,572 761,930,286

Cash 111 644,789,572 705,930,286

Cash equivalents 112 399,000,000 56,000,000

Short-term financial investments 120 6(a) 7,400,000 -

Held-to-maturity investments 123 7,400,000 -

Accounts receivable - short-term 130 2,652,953,397 2,771,124,731

Accounts receivable from customers 131 7 1,988,261,387 1,166,693,898

Prepayments to suppliers 132 243,425,908 139,861,845

Loan receivables 135 8 - 1,143,479,452

Other receivables 136 9 421,266,102 321,089,536

Inventories 140 10 5,930,372,391 4,880,128,480

Inventories 141 5,958,352,149 4,969,141,648

Allowance for inventories 149 (27,979,758) (89,013,168)

Other current assets 150 942,220,970 1,343,115,488

Short-term prepaid expenses 151 46,128,020 56,241,220

Deductible value added tax 152 896,037,352 1,286,793,842

Taxes and others receivable from

State Treasury 153 55,598 80,426

Practicing Auditor RegistrationCertificate No.: 0306-2018-007-1Deputy General Director

KPMG LimitedVietnam

To the ShareholdersMasan High-Tech Materials Corporation

We have audited the accompanying consolidated financial statements of Masan High-Tech Materials Corporation (“the Company”) and its subsidiaries (collectively referred to as “the Group”), which comprise the consolidated balance sheets as at 31 December 2021, the related consolidated statements of income and cash flows for the year then ended and the explanatory notes thereto which were authorised for issue by the Company’s Board of Management on 11 March 2022, as set out on pages 181 to 241.

Management’s Responsibility The Company’s Board of Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting, and for such internal control as the Board of Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Company’s Board of Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor’s OpinionIn our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated financial position of the Group as at 31 December 2021 and of their consolidated results of operations and their consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting.

INDEPENDENT AUDITOR’S REPORT

Hanoi, 11 March 2022

Phan My LinhPracticing Auditor RegistrationCertificate No.: 3064-2019-007-1

Masan High-Tech Materials Corporation and its subsidiariesConsolidated balance sheet as at 31 December 2021

Form B 01 – DN/HN(Issued under Circular No. 202/2014/TT-BTC

dated 22 December 2014 of the Ministry of Finance)

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

CONSOLIDATED BALANCE SHEET


Code Note 31/12/2021 1/1/2021

VND’000 VND’000

Long term assets (200 = 210 + 220 + 230 + 240 + 250 + 260)

200 28,774,460,852 30,352,548,829

Accounts receivable – long-term 210 1,344,574,789 1,298,310,451

Other long-term receivables 216 9 1,344,574,789 1,298,310,451

Fixed assets 220 21,507,557,062 23,784,752,467

Tangible fixed assets 221 11 17,916,829,652 19,826,833,068

Cost 222 29,323,337,078 30,478,383,425

Accumulated depreciation 223 (11,406,507,426) (10,651,550,357)

Finance lease tangible fixed assets 224 - -

Cost 225 67,300,000 67,300,000

Accumulated depreciation 226 (67,300,000) (67,300,000)

Intangible fixed assets 227 12 3,590,727,410 3,957,919,399

Cost 228 4,500,413,119 4,693,664,166

Accumulated amortisation 229 (909,685,709) (735,744,767)

Investment property 230 13 800,547,308 -

Cost 231 1,156,174,253 -

Accumulated depreciation 232 (355,626,945) -

Long-term work in progress 240 1,157,484,188 1,467,480,229

Construction in progress 242 14 1,157,484,188 1,467,480,229

Long-term financial investments 250 6 180,510,490 202,627,868

Investments in associates, joint ventures 252 180,510,490 195,227,868

Held-to-maturity investments 255 - 7,400,000

Other long-term assets 260 3,783,787,015 3,599,377,814

Long-term prepaid expenses 261 15 3,486,983,142 2,905,894,138

Deferred tax assets 262 21(a) 296,803,873 693,483,676

TOTAL ASSETS (270 = 100 + 200) 270 39,351,197,182 40,108,847,814

Code Note 31/12/2021 1/1/2021

VND’000 VND’000

RESOURCES

LIABILITIES (300 = 310 + 330) 300 25,010,017,858 26,029,306,779

Current liabilities 310 7,877,179,852 7,508,154,152

Accounts payable to suppliers 311 1,508,640,236 952,963,298

Advances from customers 312 16 34,709,351 955,735,222

Taxes payable to State Treasury 313 17 166,958,554 162,676,781

Payables to employees 314 4,777,953 16,064,491

Accrued expenses 315 18 1,000,544,438 944,647,799

Other short-term payables 319 19 342,355,463 306,683,463

Short-term borrowings and bonds 320 20(a) 4,800,093,173 4,162,866,240

Provisions – short-term 321 19,100,684 6,516,858

Long-term liabilities 330 17,132,838,006 18,521,152,627

Other long-term payables 337 - 500,170

Long-term borrowings and bonds 338 20(b) 9,238,202,894 9,220,442,520

Deferred tax liabilities 341 21(a) 1,543,909,966 1,842,833,535

Provisions – long-term 342 22 6,350,725,146 7,457,376,402

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

Masan High-Tech Materials Corporation and its subsidiariesConsolidated balance sheet as at 31 December 2021 (continued)







Code Note 31/12/2021 1/1/2021

VND’000 VND’000

EQUITY (400 = 410) 400 14,341,179,324 14,079,541,035

Equity 410 23 14,341,179,324 14,079,541,035

Share capital 411 24 10,991,554,200 10,991,554,200

- Ordinary shares with voting rights 411a 10,991,554,200 10,991,554,200

Share premium 412 24 1,098,259,892 1,098,259,892

Other capital 414 (295,683,347) (295,683,347)

Foreign exchange differences 417 (365,829,110) (189,058,584)

Other equity funds 420 (170,252,387) (358,967,342)

Retained profits after tax 421 2,962,204,732 2,766,593,412

- Retained profits brought forward 421a 2,766,593,412 2,727,397,449

- Retained profit for the current year 421b 195,611,320 39,195,963

Non-controlling interest 429 120,925,344 66,842,804

TOTAL RESOURCES(440 = 300 + 400)

440 39,351,197,182 40,108,847,814

Code Note 2021 2020

VND’000 VND’000

Revenue from sales of goods and

provision of services01 13,583,641,781 7,365,774,085

Revenue deductions 02 19,351,935 74,593,427

Net revenue (10 = 01 - 02) 10 26 13,564,289,846 7,291,180,658

Cost of sales 11 11,293,885,339 7,113,222,006

Gross profit (20 = 01 - 11) 20 2,270,404,507 177,958,652

Financial income 21 27 344,622,946 646,482,348

Financial expenses 22 28 1,435,452,204 1,652,967,999

Share of profit/(loss) in associates 24 3,064,567 (29,488,203)

Selling expenses 25 29 445,622,393 226,224,066

General and administration expenses 26 30 638,030,680 282,149,068

Net operating profit/(loss)(30 = 20 + 21 - 22 + 24 - 25 - 26)

30 98,986,743 (1,366,388,336)

Other income 31 142,172,892 1,328,986,068

Other expenses 32 84,643,721 58,808,571

Results of other activities (40 = 31 - 32) 40 57,529,171 1,270,177,497



Masan High-Tech Materials Corporation and its subsidiariesConsolidated statement of income for the year ended 31 December 2021






11 March 2022

Prepared by:

Nguyen Thi Thanh MaiChief Accountant

Stuart James WellsChief Financial Officer

Reviewed by:


Approved by:

CONSOLIDATED STATEMENT OF INCOME


Code Note 2021 2020

VND’000 VND’000

Accounting profit/(loss) before tax(50 = 30 + 40)

50 156,515,914 (96,210,839)

Income tax expense – current 51 33 59,707,083 20,654,658

Income tax benefits – deferred 52 33 (164,314,798) (168,656,455)

Net profit after tax(60 = 50 - 51 - 52)

60 261,123,629 51,790,958

Net profit attributable to:

Shareholders of the Company 61 195,611,320 39,195,963

Non-controlling interest 62 65,512,309 12,594,995

Earnings per share VND VND

Basic earnings per share 70 34 178 39

Code Note 2021 2020

VND’000 VND’000

CASH FLOWS FROM OPERATING ACTIVITIES

Profit/(loss) before tax 01 156,515,914 (96,210,839)

Adjustments for

Depreciation and amortisation 02 1,588,610,779 1,557,239,244

Negative goodwill on acquisition of a subsidiary 02 29 - (1,298,081,205)

Allowances and provisions 03 (16,222,267) 160,371,671

Exchange losses arising from revaluation of monetary items

04 15,702,294 2,888,194

Profits from investing activities 05 (13,211,344) (22,087,236)

Interest expense and borrowing fees 06 28 1,145,321,327 1,278,848,458

Operating profit before changes in

working capital

08 2,876,716,703 1,582,968,287

Change in receivables and other assets 09 (716,340,962) (216,175,072)

Change in inventories 10 (989,210,501) (145,583,894)

Change in payables and other liabilities 11 (353,209,060) (573,206,231)

Change in prepaid expenses 12 43,334,353 (209,068,012)

861,290,533 438,935,078

Interest paid 14 (1,330,110,196) (1,248,770,678)

Income tax paid 15 (123,278,973) (154,592,206)

Net cash flows from operating activities 20 (592,098,636) (964,427,806)

Masan High-Tech Materials Corporation and its subsidiariesConsolidated statement of income for the year ended 31 December 2021 (continued)



Masan High-Tech Materials Corporation and its subsidiariesConsolidated statement of cash flows for the year ended 31 December 2021 (Indirect method)



The accompanying notes are an integral part of these consolidated financial statementsThe accompanying notes are an integral part of these consolidated financial statements

CONSOLIDATED STATEMENT OF CASH FLOWS

11 March 2022

Prepared by:



Reviewed by:


Approved by:


Code Note 2021 2020

VND’000 VND’000

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for additions to fixed assets and other long-term assets

21 (921,559,976) (1,474,237,254)

Proceeds from disposals of fixed assets and other long-term assets

22 21,625,809 12,765,546

Payments for term deposit and granting loans to other parties

23 - (1,931,153,425)

Term deposits received and receipts from

collecting loans

24 1,143,479,452 1,787,321,421

Acquisition of subsidiary, net of cash acquired 25 26,476,816 (1,053,739,472)

Receipt of interest 27 29,522,173 34,978,354

Net cash flows from investing activities 30 299,544,274 (2,624,064,830)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from share issuance and relatedtransaction cost

31 (42,624,809) 2,094,330,737

Proceeds from borrowings and bonds 33 6,608,097,474 13,350,232,314

Payments to settle loan principals and bond

issuance related costs

34 (5,988,605,407) (12,814,978,565)

Net cash flows from financing activities 40 576,867,258 2,629,584,486

Code Note 2021 2020

VND’000 VND’000

Net cash flows during the year(50 = 20 + 30 + 40)

50 284,312,896 (958,908,150)

Cash and cash equivalents at the beginning of the year

60 761,930,286 1,723,204,606

Effect of exchange rate fluctuation on cash and cash equivalents

61 (2,453,610) (2,366,170)

Cash and cash equivalents at the end of the year (70 = 50 + 60 + 61)

70 5 1,043,789,572 761,930,286

Masan High-Tech Materials Corporation and its subsidiaries Consolidated statement of cash flows for the year ended 31 December 2021(Indirect method - continued)




Masan High-Tech Materials Corporation and its subsidiaries Consolidated statement of cash flows for the year ended 31 December 2021(Indirect method - continued)




11 March 2022

Prepared by:



Reviewed by:


Approved by:


Percentage of economic interests at

31/12/2021 and 1/1/2021Name Address Principal activity

H.C. Starck Infrastructure GmbH & Co. KG (ii) Munich, Germany Deep processing of nonferrous metals and precious metals(Tungsten)

100%

ChemiLytics GmbH & Co. KG (ii) Goslar, Germany Chemical analysis and physical measurement data

100%

H.C. Starck Tungsten GmbH (ii) Munich, Germany Deep processing of nonferrous metals and precious metals(Tungsten)

100%

H.C. Starck Nonferrous Metals Trading (Shanghai)Co. Ltd. (ii) Shanghai, PRC Trading and distribution 100%

H.C. Starck Canada Inc. (ii) Sarnia, Ontario, Canada

Deep processing of nonferrous metals and precious metals(Tungsten)

100%

H.C. Starck Tungsten GKCo., Ltd. (ii) Tokyo, Japan Trading and distribution 100%

H.C. Starck Tungsten LLC (ii) Newton, USA Trading and distribution 100%

H.C. Starck Jiangwu Tungsten Specialities (Ganzhou) Co., Ltd.

(ii) Ganzhou, China Deep processing of nonferrous metals and precious metals(Tungsten)

60%


31/12/2021 and 1/1/2021

Name Address Principal activity

Direct subsidiaryMasan Thai Nguyen Resources Company Limited (“MRTN”) (i) Ho Chi Minh City Investment holding 100%

Indirect subsidiariesThai Nguyen Trading and Investment Company Ltd (“TNTI”) (i) Ho Chi Minh City Investment holding 100%

Nui Phao Mining Company Limited (“NPM”) (i) Thai Nguyen Province

Exploring and processingmineral (*)

100%

Masan Tungsten Limited Liability Company (“MTC”) (i) Thai Nguyen Province

Deep processing of nonferrous metals and precious metals (Tungsten)

100%

H.C. Starck Holding (Germany) GmbH (“HCS”) (**) (i) Goslar, Germany Investment holding 100%

ChemiLytics Beteiligungs GmbH (ii) Goslar, Germany Investment holding 100%

H.C. Starck GmbH (ii) Goslar, Germany Investment holding 100%

Chemische Fabriken Oker und Branschweig AG (ii) Goslar, Germany Producing chemicals utilized inthe manufacturing of paper andadditives for the absorptivematerials industry

100%


31/12/2021 and 1/1/2020Name Address Principal activity

Indirect associates

Jiangwu H.C. Starck Tungsten Products Co., Ltd. (ii) Ganzhou, China Deep processing of nonferrous metals and precious metals (Tungsten)

30%

These notes form an integral part of and should be read in conjunction with the accompanying consolidated financial statements.

1. Reporting entity(a) Ownership structure

Masan High-Tech Materials Corporation (“the Company” or “MHT”) is incorporated as a joint stock company in Vietnam. The consolidated financial statements comprise the Company and its subsidiaries (collectively referred to as “the Group”).

(b) Principal activities

The principal activity of the Company is investment holding.The principal activities of the subsidiaries and associate are described as follows:

(i) HCS is subsidiary of MTC. MTC is a subsidiary of NPM. TNTI and NPM are subsidiaries of MRTN. MRTN is a subsidiary of the Company.(ii) These entities are direct and indirect subsidiaries and associate of HCS. (*) NPM’s principal activities are to explore, exploit, mine and process tungsten, fluorite, bismuth, copper under the “Nui Phao Mining Project” in Ha Thuong Commune,

Dai Tu District in Thai Nguyen Province for export and domestic sales. The “Nui Phao Mining Project” is under Investment Certificate No. 17121000026 which expires on 2 February 2034.

(**) HCS is a leading manufacturer of high-tech tungsten metal powders and carbides (midstream tungsten products). HCS has production hubs in Europe, North America, and China serving customers across the globe. HCS and its subsidiaries mainly specialize in the development, manufacture and sale of high-performance powders based on the technology of metal tungsten and its compounds, tailored to individual customer needs.

The percentage of economic interests represents the effective percentage of economic interests of the Company both directly and indirectly in the subsidiaries.The percentage of voting right equals the percentage of economic interests, unless otherwise indicated.

As at 31 December 2021, the Group had 2,148 employees (1/1/2021: 2,028 employees).

Masan High-Tech Materials Corporation and its subsidiaries Notes to the consolidated financial statements for the year ended 31 December 2021

Masan High-Tech Materials Corporation and its subsidiaries Notes to the consolidated financial statements for the year ended 31 December 2021





Subsidiaries:

Associates

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


2. Basis of preparation(a) Statement of compliance

The consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for enterprises and the relevant statutory requirements applicable to financial reporting.

(b) Basis of measurementThe consolidated financial statements, except for the consolidated statement of cash flows, are prepared on the accrual basis using the historical cost concept. The consolidated statement of cash flows is prepared using the indirect method.

(c) Annual accounting periodThe annual accounting period of the Company and its subsidiaries are from 1 January to 31 December.

(d) Accounting and presentation currencyThe Group’s accounting currency is Vietnam Dong (“VND”), which is also the currency used for financial statement presentation purpose. All amounts have been rounded to the nearest thousand (“VND’000”), unless otherwise indicated.

3. Summary of significant accounting policiesThe following significant accounting policies have been adopted by the Group in the preparation of these consolidated financial statements.

(a) Basis of consolidation(i) Business combinations

Business combinations are accounted for using the purchase method as at the acquisition date, which is the date on which control is transferred to the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration the potential voting rights that currently are exercisable.

Under the purchase method, the assets and liabilities of the acquired entity are consolidated using their fair values. Cost of a business combination (cost of the acquisition) is the aggregate amount of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the acquirer in the acquisition in exchange for control

of the acquiree and any costs directly attributable to the business combination. Identifiable assets acquired, identifiable liabilities and contingent liabilities assumed in a business combination are recognised at fair value at the acquisition date.

Any goodwill that arises representing the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree is recognised in consolidated balance sheet, then amortised through to the consolidated statement of income. When the excess is negative (gain from bargain purchase), it is recognised in the consolidated statement of income for the current year after a reassessment has been performed to ensure that the measurement of identifiable assets acquired, liabilities and contingent liabilities assumed and the cost of the business combination appropriately reflects consideration of all available information as of the acquisition date.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs as the result of fair values of acquiree’s identifiable assets, liabilities or contingent liabilities or the cost of the combination being only provisionally determined, the Group shall account for such business combination at provisional amounts. During twelve months from the acquisition date (i.e. the measurement period), the Group shall retrospectively adjust the provisional amounts recognised at the acquisition date.

Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurred in connection with business combinations included any costs directly attributable to the combination, such as professional fees paid to accountants, legal advisers, valuers and other consultants to effect the combination. Transaction costs are capitalised into the cost of business combination. General administrative costs and other costs that cannot be directly attributed to the particular combination being accounted for are not included in the cost of the combination; they are recognised as an expense when incurred.

(ii) SubsidiariesSubsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently

are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

(iii) Non-controlling interestsNon-controlling interests (“NCI”) are measured by their proportionate economic interest in the acquiree’s identifiable net assets at date of acquisition.

Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as transactions with owners. In accordance with Circular No. 202/2014/TT-BTC issued by the Ministry of Finance providing guidance on preparation and presentation of consolidated financial statements (“Circular 202”) which was applied prospectively from 1 January 2015, the difference between the change in the Group’s share of net assets of the subsidiary and any consideration paid or received is recorded directly in retained profits under equity.

(iv) AssociatesAssociates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the voting power. Associates are accounted for using the equity method. They are initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit and loss of an associate, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. The carrying amount of investments in associates is also adjusted for the alterations in the investor’s proportionate interest in the investees arising from changes in the investee’s equity that have not been included in the income statement (such as revaluation of fixed assets, or foreign exchange translation differences, etc.).

When the Group’s share of losses exceeds its interest in an associate, the carrying amount of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.

(v) Transactions eliminated on consolidationIntra-group transactions, balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. However, foreign currency difference arising on intra-group monetary items, whether short-term or long-term are recorded in the consolidated statement of income. Unrealised gains and losses arising from transactions with associates are eliminated against the investment to the extent of the Group’s interest in the investee.

(vi) GoodwillGoodwill arises on the acquisition of subsidiary. Goodwill is measured at cost less accumulated amortisation. Cost of goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree in exchange for control of the acquire, plus any costs directly attributable to the acquisition.

When the excess is negative (gain from bargain purchase), it is recognised immediately in the consolidated statement of income.

(b) Foreign currency(i) Foreign currency transactions

Transactions in currencies other than VND during the year have been translated into VND at rates approximating actual rates of exchange ruling at the transaction dates.

Monetary assets and liabilities denominated in currencies other than VND are translated into VND at the account transfer buying rate for assets and account transfer selling rate for liabilities at the end of the annual accounting period quoted by the commercial bank where the Company or its subsidiaries most frequently conducts transactions.

All foreign exchange differences are recorded in the consolidated statement of income.

(ii) Foreign operationsFor the purpose of presenting the consolidated financial statements, the assets and liabilities of foreign operations are translated to VND as follow:



Masan High-Tech Materials Corporation and its subsidiariesNotes to the consolidated financial statements for the year ended 31 December 2021(continued)





• Assets and liabilities including fair value adjustments arising on acquisition, are translated to VND at the account transfer buying rate (for assets) and the account transfer selling rate (for liabilities) at the end of the accounting period quoted by the commercial bank where the Company most frequently conducts transactions;

• Revenues, income, expenses and cash flows of foreign operations are translated to VND at exchange rates at which approximate actual exchange rates ruling on the dates of transactions;

• Retained profits/Accumulated losses, funds and reserves are derived from the translated net profits/movement from which they were appropriated.

Foreign currency differences arising from the translation of foreign operations’ financial statements to VND are recognised in the balance sheet under the caption “Foreign exchange differences” in equity. When the foreign currency differences relate to a foreign operation that is consolidated but not wholly owned, accumulated exchange differences arising from translation and attributable to non-controlling interests are allocated to, and recognised as part of, non-controlling interests in the consolidated balance sheet.

(c) Cash and cash equivalentsCash comprises cash balances and call deposits. Cash equivalents are short-term highly liquid investments that are readily convertible to known amount of cash, are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

(d) Investments(i) Trading securities

Trading securities are those held by the Group for trading purpose i.e. purchased for resale with the aim of making profits over a short period of time. Trading securities are initially recognized at cost which include purchase price plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at cost less allowance for diminution in value. An allowance is made for diminution in value of trading securities if there is evidence that market price of the securities item falls below its carrying amount. The allowance is reversed if the market price subsequently increases after the allowance was recognised.

An allowance is reversed only to the extent that the securities’ carrying amount does not exceed the carrying amount that has been determined if no allowance had been recognised.

(ii) Held to maturity investmentsHeld-to-maturity investments are those that the Group’s management has the intention and ability to hold until maturity. Held-to-maturity investments include term deposits at bank, bonds and loan receivables held to maturity. These investments are stated at cost less allowance for doubtful debts.

(e) Accounts receivableAccounts receivable from customers and other receivables are stated at cost less allowance for doubtful debts.

FactoringDepending on market conditions and liquidity requirements, the Group enters into factoring agreements to transfer trade receivables. For factoring transactions, the Group assesses whether trade receivables can be derecognised in their entirety or not, basing on the extent to which it retains the risks and rewards of ownership of the trade receivables.

If the Group:

• transfers substantially all the risks and rewards of ownership of the receivables, the Group derecognises the receivables and recognises separately as asset or liability any rights and obligations created or retained in the transfer;

• retains substantially all the risks and rewards of ownership of the receivables, the Group continues to recognise the receivables;

• neither transfers nor retains substantially all the risks and rewards of ownership of the receivables, the Group determines whether it has retained control. If the Group does not retain control, it derecognises the receivables and recognises separately as assets or liabilities any rights and obligations created or retained in the transfer. If the Group retains control, it continues to recognise the receivables to the extent of its continuing involvement in the receivables.

The extent of continuing involvement in the transferred assets is the extent to which it is exposed to changes in the value of the transferred assets, which is the lower of the carrying amount of

assets and the maximum amount of the consideration that the Group could be required to pay (“the guarantee amount”).

When the Group continues to recognise an asset to the extent of its continuing involvement, the Group also recognises an associated liability. The associated liability is initially measured at the guarantee amount plus the fair value of the guarantee. Subsequently the initial fair value of the guarantee is recognised in the consolidated income statement on a time proportion basis.

(f) InventoriesInventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis and includes all costs incurred in bringing the inventories to their present location and condition. Cost in the case of finished goods and work in progress includes raw materials, direct labour and attributable mining and manufacturing overheads. Net realisable value is the estimated selling price of inventory items, less the estimated costs of completion and estimated costs to sell.

The Group applies the perpetual method of accounting for inventories.

(g) Tangible fixed assets(i) Cost

Upon completion of the mine construction phase, the assets are transferred into “building and structures”, “machinery and equipment” or “other mining assets” in tangible fixed assets. Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed asset comprises its purchase price or construction cost, including import duties, non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition and location for its intended use, and the costs of dismantling and removing the asset and restoring the site on which it is located. Expenditure incurred after tangible fixed assets have been put into operation, such as repairs and maintenance and overhaul costs, is normally charged to the statement of income in the year in which the costs are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of tangible fixed assets beyond their originally assessed standard of performance, the expenditure is capitalised as an additional cost of tangible fixed assets.

If the self-constructed tangible assets have been completed and are put into used but their cost is not finalised, their historical cost will be recorded at a temporarily estimated value and they shall be adjusted with the difference after the finalised cost are approved.

Other mining assets comprise mine rehabilitation assets; and fair value of mineral reserves and mineral resources from business combination.

(ii) DepreciationNPM: Machinery and equipment directly related to mineral processing activities and fair value of mineral reserves from business combination

Machinery and equipment which are directly related to mineral processing activities and fair value of mineral reserves from business combination are depreciated on a unit-of-production method with the depreciation bases calculated using the proved and probable mineral reserve and a portion of resources expected to be converted into reserves.

Effective from 1 January 2021, the Group updated its estimates of mineral reserves and resources, using (i) the result of mining specialist’s technical assessments on mineral reserve within Nui Phao project area, (ii) a portion of mineral resources expected to be converted into reserves and (iii) further mineral resource which can be reprocessed from the NPM’s oxide tails cell (“OTC”). These updates are estimates of the amount of production volume that can be economically and legally extracted from the Group’s mining properties.

Detail of changes in the remaining ore equivalent quantity served as depreciation basis as at 1 January 2021 are as follow:

Increased by Tonnes of ore

M&E relating to mineral processing activities 6,422,588 M&E relating to mineral processing activities and to be used in OTC retreatment

21,742,588

Fair value of mineral reserves from business combination

21,742,588

These changes lead to a decrease by VND207 billion in the depreciation charge for the current year.



Masan High-Tech Materials Corporation and its subsidiariesNotes to the consolidated financial statements for the year ended 31 December 2021 (continued)





MTC: Machinery and equipment directly related to production activities

Machinery and equipment which are directly related to the deep processing of tungsten products of MTC are depreciated over its estimated useful lives on a units of production basis. The estimated total production quantity output which the tangible fixed assets are depreciated on a unit-of-production basis are as follows:

ST plant 171,865 tonnes of tungstenAPT plant 166,990 tonnes of tungsten

Others

Depreciation is computed on a straight-line basis over the estimated useful lives of tangible fixed assets. The estimated useful lives are as follows:

• buildings and structures 5 – 40 years• machinery and equipment 3 – 20 years• office equipment 3 – 10 years • motor vehicles 3 – 25 years• other mining assets 26 years

Construction asset which are completed and put into use before construction costs being finalised, are stated at provisional cost. On the date the construction costs are finalised and approved, provisional cost shall be adjusted to finalise cost and accumulated depreciation shall not be adjusted. The subsequent depreciation charge is determined as the approved value minus the accumulated depreciation made for the period up to the approval of finalisation of fixed asset divided by the remaining depreciation period of the fixed asset according to relevant regulations.

In the current period, due to changes in estimation from latest mineral reserve assessment and OTC retreatment project as disclosed in Note 3(g)(ii) for Machinery and equipment directly related to mineral processing activities above, NPM revised estimated useful life of certain group of assets. These changes lead to a decrease by VND26 billion in the depreciation charge for the current year.

The revised estimated useful lives are as follows:

2021 2020buildings and structures 5 - 27 years 5 - 20 yearsmachinery and equipment 3 - 22 years 3 - 20 yearsother mining assets 26 years 19 years

(h) Intangible fixed assets(i) Land

Lands comprise those acquired in a legitimate transfer. Lands are stated at cost and are not amortised.

ii) SoftwareCost of software include:

• Cost of acquisition of new software, which is not an integral part of the related hardware, is capitalised and treated as an intangible asset. Acquired software costs are amortised on a straight-line basis over three (3) to eight (8) years;

• Cost incurred during software development phase when following conditions are met:

» Respective costs are attributable directly to the software development stage;

» There is well-founded expectation – verifiable by program designs, models, or the like that the Group has intention to complete the development project and use or sell it;

» The Group will be able to implement and use the software after its development;

» Adequate technical, financial and human resources should be available to complete the software development successfully;

» The Group is able to measure expenditures attributable to the software development project reliably.

Developed software is amortised on a straight-line basis over period of up to four (4) years starting from the date on which the respective modules are completed.

(iii) Mining rightsThe mining rights are calculated based on the remaining exploitable reserves multiplied with the price as announced by the provincial authorities in accordance with Decree 67/2019/ND-CP dated 31 July 2019 (“Decree 67”) which became effective from 15 September 2019, replacing Decree 203/2013/ND/CP dated 28 November 2013. Cost of mining rights was stated at an amount

equal to the present value of mining rights fee and was capitalised and treated as an intangible asset. Amortisation of mining rights is computed on a straight-line basis over the economic life of the proved and probable mineral reserve and a portion of resources expected to be converted into reserves.

(iv) Development costsCost of development costs include:

Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and process, is capitalised if the product or process is technically and commercially feasible and the Group has sufficient resources to complete development. The expenditure capitalised include the costs of materials, direct labour and an appropriate portion of overheads. Other development expenditure, including expenditure on internally generated goodwill and brands, is recognised in the consolidated statement of income as an expense as incurred;

Development costs that are acquired by the Group through business combinations are capitalised and presented as an intangible fixed asset. The fair value of development costs are amortised on a straight-line basis over period from 10 to 16 years.

The fair value of development costs acquired through business combinations is determined using the incremental cash flow method, whereby the subject assets are valued after deducting a fair return on all other assets that are part of creating the related cash flows.

(v) Brand nameCost of acquisition of brand name is recognised as an intangible asset.

The fair value of brand name acquired in a business combination is based on the discounted estimated royalty payments that have been avoided as a result of the brand name being owned. The fair value of brand name acquired in a business combination is recognised as an intangible asset and is amortized on a straight-line basis over periods ranging from 20 to 30 years.

(vi) Customer relationshipCustomer relationships that are acquired by the Group through business combinations are capitalised and presented as an intangible fixed asset. The fair value of customer relationships are amortised on a straight-line basis over period of 36 years.

The fair value of customer relationships acquired through business combinations is determined using the multi-period excess earnings method, whereby the subject assets are valued after deducting a fair return on all other assets that are part of creating the related cash flows.

(vi) TechnologiesTechnologies that are acquired by the Group through business combinations are recognised as intangible fixed assets and are initially measured at fair value. Technologies are amortised on a straight-line basis over their useful lives ranging from 16 to 31 years.

The fair value of technologies acquired through business combinations are determined using the multi-period excess earnings method whereby the subject assets are valued after deducting a fair return on all other assets that are part of creating the related cash flows and/or based on the discounted estimated royalty payments that have been avoided as a result of the technologies being owned.

(i) Investment propertyInvestment property held to earn rental

Cost

Investment property held to earn rental is stated at cost less accumulated depreciation. The initial cost of an investment property held to earn rental comprises its purchase price, cost of land use rights and any directly attributable expenditures of bringing the property to the condition necessary for it to be capable of operating in the manner intended by the Board of Management. Expenditure incurred after the investment property held to earn rental has been put into operation, such as repairs and maintenance, is charged to the consolidated statement of income in the year in which the expenditure is incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in future economic benefits in excess of the originally assessed standard of performance of the existing investment property held to earn rental, the expenditure is capitalised as an additional cost of the investment property.

Depreciation

Depreciation is computed on a straight-line basis over the estimated useful lives of investment property. The estimated useful lives are as follows:








buildings 40 – 60 years

Lands are recognized by historical cost and are not amortised.

(j) Construction in progressConstruction in progress mainly represents mineral assets under development and cost of construction and machinery which have not been fully completed, installed and commissioned. It also comprises land compensation, mineral reserves, mineral resources and related development expenditure. These assets qualify for capitalisation when the mineral reserves to which they relate is proven to be commercially and technically viable. They are capitalised net of proceeds from the sale of commissioning products during the development phase. On completion of construction defined as the time when the assets are brought into the condition of its intended use, all assets are reclassified to tangible fixed assets as either “buildings and structures”, “machinery and equipment” or “other mining assets”; or long-term prepaid expenses as “other mining costs”.

No depreciation is provided for construction in progress during the period of development, construction, installation and commissioning stages.

(k) Long-term prepaid expenses(i) Prepaid land costs

Prepaid land costs comprise prepaid land lease rentals, including those for which the Group obtained land use rights certificate but are not qualified as intangible fixed assets under prevailing laws and regulations on costs incurred in conjunction with securing the use of leased land. These costs are recognised in the consolidated statement of income on a straight-line basis over the term of the leases from 35 to 50 years.

(ii) Land compensation costsLand compensation costs comprise prepaid land lease rentals, compensation, resettlement and other costs incurred in conjunction with securing the use of leased land for its mining activities. These costs are recognised in the consolidated statement of income on a straight-line basis over the term of the related leases.

(iii) Other mining costsOther mining costs comprise:• Exploration, evaluation and development expenditure (including

development stripping); andd

• Production stripping (as described below in ‘Deferred stripping costs’).

Deferred stripping costs

In open pit mining operations, it is necessary to remove overburden and other waste materials to access ore body. Stripping costs incurred in the development phase of a mine (development stripping costs) are recorded as part of the cost of construction of the mine. All development stripping expenditure incurred during construction phase are transferred to other mining costs.

The costs of removal of the waste material during a mine’s production phase (production stripping costs) are deferred where they give rise to future benefits:

a) It is probable that the future economic benefits will flow to the Group;

b) The component of the ore body for which access has been improved can be identified; and

c) The costs incurred can be measured reliably.

Production stripping costs are allocated between inventory and long-term prepaid expenses in accordance with the life of mine strip ratio of the identified components of the ore bodies.

The life of mine strip ratio represents the estimated total volume of waste, to the estimated total quantity of economically recoverable ore, over the life of the mine of the identified components of the ore bodies. These costs are recognised as long-term prepaid expenses where the current period actual stripping ratio is higher than the average life of mine strip ratio.

The development and production stripping costs are amortised systematically based on the mineral reserves and mineral resources expected to be converted to mineral reserves of the relevant components. During the year, NPM, a subsidiary of the Group, has updated its estimate of mineral reserves and resources which serves as basis for calculation and amortisation of development and production stripping costs. The revision was based on the result of mining specialist technical assessments on mineral reserve within Nui Phao project area and the portion of resources expected to be converted into reserves as disclosed in Note 3(g)(ii). The effect on the amortisation charge for the current year was to decrease the amortisation charge by VND9 billion.

(iv) Incremental costs of obtaining a contractThe incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that the Group would not have incurred if the contract had not been obtained. The Group shall capitalize incremental costs of obtaining a contract if such costs meet the following criteria:

• Only the incremental costs incurred as a result of obtaining a contract should be capitalized;

• The cost must be recoverable.

The recognised asset shall be amortised on a systematic basis matched with the transfer of the goods or services to the customer to which the asset relates.

(v) Other prepaid expensesOther prepaid expenses include service fees which are initially stated at cost and amortised on a straight-line basis over the term of the contracts for services fees.

(I) Accounts payableAccounts payable to suppliers and other payables are stated at their cost.

(m) ProvisionsA provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

(i) Mining rightsIn accordance with the Law on Minerals 2010, a subsidiary of the Company has an obligation to pay the government fees for mining rights grant. Mining rights is calculated based on the remaining exploitable reserves and the price to calculate the charge for granting mining rights which is defined under the prices to calculate the resource royalty in accordance with the law on resource royalty at the time of determining the charge for granting mining rights officially which is Decree 67.

The prices to calculate the resource royalty is the price applicable for the Company’s products which is determined by the provincial People’s Committee. The conversion method is based on various

parameters of the conversion coefficient under guidelines of Decree 67.

(ii) Mine rehabilitationThe mining, extraction and processing activities of the Group normally give rise to obligations for site closure or rehabilitation. Closure and rehabilitation works can include facility decommissioning and dismantling; site and land rehabilitation. The extent of work requires and the associated costs are dependent on the requirements of Ministry of Natural Resources and Environment (“MONRE”) and the Group’s environmental policies based on the Environment Impact Report.

Provisions for the cost of each closure and rehabilitation program are recognised at the time that environmental disturbance occurs. When the extent of disturbance increases over the life of an operation, the provision is increased accordingly. Costs included in the provision encompass all closure and rehabilitation activity expected to occur progressively over the life of the operation proportional to the degree of influence on the environment existing at the end of the accounting period.

Where rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure, provision is made for the estimated outstanding continuous rehabilitation work at each reporting dates and the cost is charged to the statement of income. Routine operating costs that may impact the ultimate closure and rehabilitation activities, such as waste material handling conducted as an integral part of a mining or production process, are not included in the provision. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned discharges, are recognised as an expense and liability when the event gives rise to an obligation which is probable and capable of reliable estimation.

The timing of the actual closure and rehabilitation expenditure is dependent on the life of the mine. Closure and rehabilitation provisions are measured at the expected value of future cash flows, discounted to their present value and determined according to the probability of alternative estimates of cash flows occurring for each operation. Significant judgments and estimates are involved in forming expectations of future activities and the amount and timing of the associated cash flows. Those expectations are formed based on existing environmental and regulatory requirements which give rise to a constructive obligation.








When provisions for closure and rehabilitation are initially recognised, the corresponding cost is capitalised as an asset if the related obligations for closure and rehabilitation are unavoidable to the construction of the asset. The capitalised cost of closure and rehabilitation activities is recognised in other mining assets and depreciated accordingly. The value of the provision is progressively increased over time as the effect of the discounting unwinds, creating an expense recognised in financial expenses.

Closure and rehabilitation provisions will also be adjusted for changes in estimates. These adjustments will be accounted for as a change in the corresponding capitalised cost, except where a reduction in the provision is greater than the under-depreciated capitalised cost of the related assets, in which the capitalised cost is reduced to nil and the remaining adjustment is recognised in the consolidated income statement. Changes to the capitalised cost result in an adjustment to future depreciation. Adjustments to the estimated amount and timing of future closure and rehabilitation cash flows are a normal occurrence in light of the significant judgements and estimates involved.

(iii) Pension liabilitiesPensions are retirement benefits and are classified as either defined contribution plans or defined benefit plans.

Under a defined contribution plan, the Group pays fixed contributions into a separate fund. The amount of an employee’s future retirement benefit is only based on the contributions paid and the income earned from the investment. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The Group’s contributions are to be recognised as expenses in the periods in which they were to be contributed.

Under a defined benefit plan, employees will receive a defined amount of pension benefit on retirement, usually dependent on one or more factors such as age, years of service and compensation. The provision to be recognised for a defined benefit plan is calculated as the present value of the defined benefit obligations at the end of the accounting period. The defined benefit obligation is calculated annually by independent actuaries. The present value of the defined benefit obligation is determined by discounting estimated future cashflow using interest rates of high-quality AA-corporation bonds that are denominated in the currency in which the benefits will be paid, and that have terms to

maturity approximation to the terms of the related pension liability. The Group determines the net interest expense on the net defined benefit liability (asset) for the year by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions. Net interest expense and other expenses related to defined benefit plans are recognised in consolidated statement of income. The remeasurement of defined benefit obligation involves estimation of future cashflow, employee turnover, mortality and future increase in salaries.

Gain or loss arising from remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses and the relevant deferred tax are recognised in equity under the caption “Other equity funds” in accordance with a ruling from the Ministry of Finance (“MOF”).

(n) Bonds issuedAt initial recognition, bonds are measured at cost which comprises proceeds from issuance net of issuance costs. Any discount, premium or issuance costs are amortised on a straight-line basis over the term of the bond.

(o) Equity(i) Ordinary shares

Ordinary share capital is classified as equity. The excess of proceeds contributed over the par value of shares issued is recorded as share premium. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from share premium.

(ii) Preference sharesMandatorily convertible preference shares are classified as equity. These are entitled to fixed dividends and any discretionary dividends declared to ordinary shareholders and it participates equally in the residual assets on dissolution. The excess of proceeds contributed over the par value of shares issued is recorded as share premium. Incremental costs directly attributable to the preference shares are recognised as a deduction from share premium.

(iii) Other capital Equity movements resulting from acquisition or disposal to non-controlling interests and transactions involving equity instruments were recorded in “Other capital” prior to the prospective application of Circular 202 from 1 January 2015 (Note 3(a)(iii)).







(p) TaxationIncome tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the statement of income except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the end of the annual accounting period, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amounts of assets and liabilities using tax rates enacted or substantively enacted at end of the annual accounting period. Deferred tax is recognised in the consolidated statement of income except to the extent relating to item recognised directly in equity.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(q) Revenue(i) Goods sold

Revenue from the sale of goods is recognised in the consolidated statement of income when significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or the possible return of goods. Revenue on sales of goods is recognised at the net amount after deducting sales discounts.

For sales of minerals, the sales price is usually determined on a provisional basis at the date of revenue recognition and adjustments to the sales price subsequently occurs based on movements in quoted market or contractual prices up to the date of final pricing. The period between provisional invoicing and final pricing is typically between 30 and 60 days, but in some cases can be as long as 90 to 180 days. Revenue on provisionally priced

sales is recognised based on the estimated fair value of the total consideration receivable.

In cases where the terms of the executed contractual sales agreement allow for an adjustment to the sales price based on a survey of the goods by the customer, assay results issued by a third party are preferable, unless customer’s survey is within executed contractual tolerance, then sales recognition is based on the most recently determined product specifications agreed by parties.

(ii) Revenue from tolling businessTolling process is offered to the Group’s worldwide customers of the metal powder business, in which customers deliver used material or metal scraps to the Group for recycling into finished products i.e. metal powder. Revenue from tolling business is recognised in the consolidated statement of income when the goods have been processed and accepted by the buyer. Revenue from tolling business is measured based on the consideration to which the Group expects to be entitled in the contract, including tolling fee and fair value of materials of which it obtained control. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due.

(r) Financial income and financial expenses(i) Financial income

Financial income comprises interest income from deposits and loans and foreign exchange gains. Interest income is recognised as it accrues in the statement of income.

(ii) Financial expensesFinancial expenses comprise interest expenses on borrowings, bonds, facility fees, financing costs, transaction costs and foreign exchange losses.

(s) Leases(i) Leased assets

Leases in terms of which the Group, as lessee, assumes substantially all the risks and rewards of ownership are classified as finance leases. Tangible fixed assets acquired by way of finance leases are stated at an amount equal to the lower of fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation.

Depreciation on finance leased assets is computed on a straight-


Copper Fluorspar Tungsten Others Total

VND’000 VND’000 VND’000 VND’000 VND’000

From 1/1/2021 to 31/12/2021

Segment revenue 56,404,090 1,347,940,363 11,912,310,136 247,635,257 13,564,289,846

Segment gross profit 24,352,149 884,982,004 1,285,882,254 75,188,100 2,270,404,507

Unallocated expenses (1,083,653,073)

Financial income 344,622,946

Financial expenses (1,435,452,204)

Share of profit in associates 3,064,567

Results from operating activities 98,986,743

Other income 142,172,892

Other expenses (84,643,721)

Income tax benefit 104,607,715

Net profit after tax 261,123,629

From 1/1/2020 to 31/12/2020

Segment revenue 749,991,344 1,505,652,969 4,985,152,820 50,383,525 7,291,180,658

Segment gross profit/(loss) (258,933,157) 946,641,059 (429,133,271) (80,615,979) 177,958,652

Unallocated expenses (508,373,134)

Financial income 646,482,348

Financial expenses (1,652,967,999)

Share of loss in associates (29,488,203)

Results from operating activities (1,366,388,336)

Other income 1,328,986,068

Other expenses (58,808,571)

Income tax benefit 148,001,797

Net profit after tax 51,790,958







line basis over the shorter of the lease term and the estimated useful lives of the leased assets unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. The estimated useful lives of finance leased assets are consistent with the useful lives of tangible fixed assets as described in Note 3(g)(ii).

Assets held under other leases are classified as operating leases and are not recognised in the Group’s balance sheet.

(ii) Lease paymentsPayments made under operating leases are recognised in the statement of income on a straight-line basis over the term of the lease. Lease incentives received are recognised in the statement of income as an integral part of the total lease expense over the term of the leases.

Lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

(t) Borrowing costsBorrowings costs comprise interest expenses on borrowings, facility fees, financing costs and transaction costs. Borrowing costs are recognised as an expense in the year in which they are incurred, except where the borrowing costs relate to borrowings in respect of the construction of qualifying assets, in which case the borrowing costs incurred during the year of construction are capitalised as part of the cost of the fixed assets concerned.

(u) Earnings per shareThe Group presents basic and diluted, if any, earnings per share (“EPS”) for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to the ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. To determine the profit or loss attributable to ordinary equity holders, profit or loss for the year is allocated to the ordinary shares and participating equity instruments. This allocation is made in accordance with the rights of the other class of shares to participate in distributions if the entire profit or loss were distributed.

Diluted EPS is determined by adjusting the profit or loss attributable to the ordinary shareholders and the weighted average number of ordinary shares outstanding for the effect of all dilutive potential ordinary shares.

(v) Segment reportingA segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Group’s primary and secondary format for segment reporting is based on business segments and geographical segments respectively.

(w) Related partiesParties are considered to be related to the Group if one party has the ability, directly or indirectly, to control the other party or to exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities and include close family members of any individual considered to be a related party. Related parties that are individuals refer to key management personnel who have authority and responsibility for planning, directing and controlling the activities of the Company, including directors and officers of the Company. Related companies refer to the shareholders and their ultimate parent companies and their subsidiaries and associates.

(x) Comparative informationComparative information in these consolidated financial statements is presented as corresponding figures. Under this method, comparative information for the prior year is included as an integral part of the current period financial statements and are intended to be read only in relation to the amounts and other disclosures relating to the current year. Accordingly, the comparative information included in these consolidated financial statements is not intended to present the Group’s consolidated financial position, results of operation or cash flows for the prior year.

4. Segment reporting(a) Business segmentsThe Group comprises the following business segments:


Vietnam Belgium Germany Japan USA China Others Total

VND’000 VND’000 VND’000 VND’000 VND’000 VND’000 VND’000 VND’000

From 1/1/2021 to 31/12/2021

External revenue 103,896,711 77,128,101 2,254,194,005 890,305,497 2,739,884,245 3,172,104,872 4,326,776,415 13,564,289,846

Segment assets 30,270,118,574 221,363,342 3,795,213,885 298,007,504 1,080,375,416 1,829,894,491 1,856,223,970 39,351,197,182

Capital expenditure 846,238,772 - 69,172,058 - - 5,101,715 1,047,431 921,559,976

From 1/1/2020 to 31/12/2020

External revenue 100,310,278 2,168,030,828 721,401,110 592,321,521 614,301,694 - 3,094,815,227 7,291,180,658

Segment assets 31,553,724,237 102,805,243 5,706,084,571 215,265,268 318,909,291 - 2,212,059,204 40,108,847,814

Capital expenditure 1,474,237,254 - - - - - - 1,474,237,254

Copper Fluorspar Tungsten Others Total


As at 31 December 2021

Segment assets 141,513,923 717,362,819 7,947,576,784 1,694,692,887 10,501,146,413

Unallocated assets 28,850,050,769

Total assets 39,351,197,182

Total liabilities 25,010,017,858

As at 1 January 2021

Segment assets 153,242,533 757,149,316 9,407,654,444 963,525,139 11,281,571,432

Unallocated assets 28,827,276,382

Total assets 40,108,847,814

Total liabilities 26,029,306,779

From 1/1/2021 to 31/12/2021

Capital expenditure - - 112,758,089 164,118,584 276,876,673

Unallocated capital expenditure 644,683,303

Depreciation and amortisation 11,728,610 44,344,098 679,307,009 69,379,559 804,759,276

Unallocated depreciation and amortisation 783,851,503

Unallocated amortization of prepayment 308,082,904

From 1/1/2020 to 31/12/2020

Capital expenditure - - 95,552,600 83,095,789 178,648,389

Unallocated capital expenditure 1,295,588,865

Depreciation and amortisation 13,783,364 68,957,589 468,824,448 87,699,306 639,264,707

Unallocated depreciation and amortisation 917,974,537

Unallocated amortisation of prepayment 231,291,861




(b) Geographical segments

The Group comprises the following geographical segments:





Accounts receivable from customers detailed by significant customers

31/12/2021 1/1/2021

VND’000 VND’000

Third parties

Tungsten customers 1,481,640,329 966,871,809

Fluorspar customers 217,890,096 102,016,555

Bismuth customers 173,757,817 23,036,447

Copper customers 112,652,650 74,769,087

Other customers 2,320,495 -

1,988,261,387 1,166,693,898

At 31 December 2021 and 1 January 2021, a part of short-term receivables was pledged with banks as security for short term loans granted to subsidiaries (Note 20(a)).

(a) Held-to-maturity investments

31/12/2021 1/1/2021

VND’000 VND’000

Short-term deposits 7,400,000 -

Long-term deposits - 7,400,000

Held-to-maturity investments 7,400,000 7,400,000

(b) Investments in associates, joint venturesThe investments in associates, joint-ventures as at 31 December 2021 and 1 January 2021 represent the investment in Jiangwu H.C. Starck Tungsten Products Co. Ltd. – a company incorporated in China, an associate of HCS. The Group has 30% of interest and voting rights in this entity.

2021 VND’000

2020 VND’000

Opening balance 195,227,868 -

Increases from business combination - 213,921,246

Shared profit/(loss) in associates 3,064,567 (29,488,203)

Currency translation differences (17,781,945) 10,794,825

Closing balance 180,510,490 195,227,868

7. Accounts receivable from customers - short-term

31/12/2021VND’000

1/1/2021VND’000

Cash on hand 227,268 229,529

Cash in banks 644,562,304 696,047,057

Cash in transit - 9,653,700

Cash equivalents 399,000,000 56,000,000

1,043,789,572 761,930,286

5. Cash and cash equivalents







6. Investments


31/12/2021 1/1/2021

VND’000 VND’000

Short-term receivables

Receivable for mining rights fee (a) 241,979,433 239,835,807

Receivable for insurance claim (b) 74,794,500 -

Environmental protection fee prepayment 43,000,000 -

Export tax prepayment 19,568,139 -

Export tax receivable 17,175,216

Interest income 902,662 19,197,889

Receivable from reduction of purchase price of HCS group - 26,476,816

Others 23,846,152 35,579,024

421,266,102 321,089,536

31/12/2021 1/1/2021

VND’000 VND’000

Long-term receivables

Land compensation receivable from Thai Nguyen People’s Committee (c) 1,230,754,171 1,234,392,503

Deposit paid to Environment Protection Fund (d) 69,638,018 61,310,120

Net defined benefit assets 43,599,772 -

Others 582,828 2,607,828

1,344,574,789 1,298,310,451

Loan receivables – short-term as at 1 January 2021 represent loan granted to Masan Group Corporation (“MSN”) – ultimate parent company. The loan is unsecured, receivable in 12 months after drawn down date and has the interest rate agreed in the agreements at the transaction dates. The loan was fully settled in 2021.

8. Loans receivables

9. Other short-term and long-term receivables







(a) Receivable for mining rights fee (“MRF”) represents additional mining rights fee of the Nui Phao Mining Company Ltd (“NPM”) – a subsidiary for the year 2018 and 2019 and relevant administrative charges that NPM paid to the authorities based on temporary calculation by the General Department of Geology and Minerals (“GDGM”) under the Official Letter No.3724/DCKS-KTDCKS dated 28 December 2018 (“the Official Letter 3724”).

NPM does not agree with the amount and basis of the Official Letter 3724 as the management is of the opinion that it is unreasonable and does not comply with current regulations, because:

• The price used to calculate the charge for granting mining rights (or mining right fee) (“G-price”) is based on the prices to calculate the resource royalty. In accordance with regulations of the Government’s Decree No. 12/2015/ND-CP dated 12 February 2015 and guidance of the Ministry of Finance’s Circular No. 152/2015/TT-BTC dated 2 October 2015 on Royalties, if enterprises extracted natural resources undergo further processing instead of being sold, their price is exclusive of processing cost provided that it must be within the taxable price bracket imposed by the Provincial People’s Committee. NPM’s products are industrial products, for which the taxable price for resource royalty is determined on the basis of the higher of selling price minus (-) processing cost and the taxable price imposed by the Provincial People’s Committee. GDGM did not use the taxable price applied for industrial products, instead they used the taxable price applied for tungsten ore (0.1%< WO3<0.3%).

NPM has made payment for MRF in accordance with Decision 500/QD-BTNMT (“Decision 500”) issued by the Ministry of Natural Resources and Environment (“MONRE”) on 4 March 2015, which used estimated taxable price for resource royalty for industrial products.

NPM has also sent letters to different levels of authorities to highlight the issues and seek for proper resolutions of NPM’s MRF. In 2021, as instructed by the Prime Minister under letter 978/VPCP-KTTH dated 8 February 2021 and letter 5987/VPCP-KTTH dated 28 August 2021, the case is under review by MOF, MONRE, Thai Nguyen PPC and Thai Nguyen Department of Finance, subject to report to the Prime Minster and National Assembly Committee on Economy. By reporting date, MONRE and Thai Nguyen PPC are still working together to determine the taxable price applied for NPM’s industrial products.


31/12/2021 1/1/2021

Cost Allowance Cost AllowanceVND’000 VND’000 VND’000 VND’000

Goods in transit 372,098,029 - 71,956,654 -

Raw materials 754,788,015 (1,628,513) 956,039,022 -

Tools and supplies 730,776,119 (7,482,718) 686,047,326 (30,721,208)

Work in progress 945,904,485 (1,793,382) 669,042,621 (25,338,147)

Finished goods 3,000,567,190 (17,075,145) 2,508,689,741 (32,953,813)

Merchandise inventories 389,748 - 23,320,446 -

Goods on consignment 153,828,563 - 54,045,838 -

5,958,352,149 (27,979,758) 4,969,141,648 (89,013,168)

On 23 August 2021, MONRE has issued Decision 1640/QD/BTNMT (“Decision 1640”) to determine the MRF of Nui Phao Mine, replacing the temporary MRF calculation in Decision 500 and Official Letter 3724 despite that the taxable price applied for NPM’s industrial products has not yet been determined. In issuing this Decision 1640, MONRE continued to use the taxable price applied for tungsten ore (0.1%< WO3<0.3%) instead of the taxable price applied for industrial products, the issue of which had been highlighted by NPM before. According to Decree 67, Article 15, Point 3, in case the MRF is paid on temporary basis, if the prices for calculating resource royalties announced by provincial People’s Committees are valid and compliant with regulations on prices of minerals for determining mining right fee, those prices shall be officially applied and replace prices when making temporary payments. Because the taxable price applied for NPM’s industrial products has not yet been determined by MONRE and Thai Nguyen PPC, the G price which serves as the basis for computation of MRF under Decision 1640 is not in accordance with the prevailing laws and regulations.

As such, after the issuance of Decision 1640, NPM submitted several petition letters to the Prime Minister, MONRE to request for delaying the implementation of Decision 1640 and re-determining the MRF price.

Management believes that it had adequately provided for its liabilities for MRF from 2015 up to present based on its interpretation of relevant legislation relating to mining rights and natural resources tax, i.e., using the price as determined in Decision 500. Accordingly, the Group accounted the additional payment in 2019 as other receivable and did not account for additional amount under Decision 1640 as liabilities. Management expects that it will be able to claim back this receivable when the taxable price applied for NPM’s industrial products is determined.

(b) This amount represents estimated claim due from insurers for loss of profit arising from business interruption of NPM from July to October 2021. By reporting date, the insurers have acknowledged NPM’s insurance claim and have been working with third party loss adjuster to finalize the amount of claim.

(c) These represented receivables from State Treasury for the land compensation cost of the Nui Phao Mining Project which was paid to the affected residents at Ha Thuong Commune, Dai Tu District, Thai Nguyen Province. The amount can be netted off against annual land rental fee of future years.

(d) NPM is required to deposit for obligation to mine closure and environment rehabilitation obligation to Environment Protection. In accordance with Decision 1536/QD-BTMMT issued by MONRE dated on 20 June 2019, the mine rehabilitation plan requires deposit amount to be increased to VND123,460 million. On this date, the remaining deposit of VND87,692 million are approved for annual instalment over 10 years from 2019. The future deposit instalment will be based on the annual CPI fluctuation in accordance with Circular 38/2015/TT-BTNMT dated 30 June 2015.







Included in inventories at 31 December 2021 was VND1,629 millions of raw materials, VND101,919 millions of tools, VND 307,957 millions of work in progress and VND1,243,221 millions of finished goods (1/1/2021: VND30,721 million of tools, VND291,208 million of work in progress and VND1,469,146 million of finished goods) carried at net realisable value.

10. Inventories


Buildings and structures

Machinery and equipment

Office equipment

Motor vehicles

Other mining assets Total

VND’000 VND’000 VND’000 VND’000 VND’000 VND’000

Cost

Opening balance 7,874,947,836 17,448,092,882 42,933,174 16,483,397 5,095,926,136 30,478,383,425

Additions 5,232,853 83,406,632 - - - 88,639,485

Transfer from construction in progress (Note 14)

178,665,481 208,850,014 - 4,917,502 - 392,432,997

Disposals (1,990,310) (51,453,623) - - - (53,443,933)

Reclassification to investment properties (Note 13)

(1,220,893,978) - - - - (1,220,893,978)

Currency translation differences (92,555,627) (269,225,291) - - - (361,780,918)

Closing balance 6,743,406,255 17,419,670,614 42,933,174 21,400,899 5,095,926,136 29,323,337,078

Accumulated depreciation

Opening balance 2,025,441,828 7,233,272,724 39,870,202 12,966,186 1,339,999,417 10,651,550,357

Charge for the year 302,764,310 837,659,257 1,099,065 2,439,026 151,304,447 1,295,266,105

Disposals (309,350) (30,428,605) - - - (30,737,955)


(315,295,303) - - - - (315,295,303)

Currency translation differences (16,480,144) (177,795,634) - - - (194,275,778)

Closing balance 1,996,121,341 7,862,707,742 40,969,267 15,405,212 1,491,303,864 11,406,507,426

Net book value

Opening balance 5,849,506,008 10,214,820,158 3,062,972 3,517,211 3,755,926,719 19,826,833,068

Closing balance 4,747,284,914 9,556,962,872 1,963,907 5,995,687 3,604,622,272 17,916,829,652

Land

VND’000

Software

VND’000

Mining rights

VND’000

Development cost*

VND’000

Brand name

VND’000

CustomerRelationship

VND’000

Technologies

VND’000

Other intangible fixed assets

VND’000

Total

VND’000

Cost

Opening balance 71,973,549 424,817,716 588,370,818 685,832,537 1,120,478,861 230,117,249 1,545,588,076 26,485,360 4,693,664,166

Additions - 1,786,218 204,284,393 - - - - - 206,070,611

Transfer from construction in progress (Note 14)

- 3,717,151 - - - - - - 3,717,151


(37,535,619) - - - - - - - (37,535,619)

Currency translation differences (2,757,450) (29,039,864) - (63,707,482) (104,082,094) (21,375,758) (143,570,797) (969,745) (365,503,190)

Closing balance 31,680,480 401,281,221 792,655,211 622,125,055 1,016,396,767 208,741,491 1,402,017,279 25,515,615 4,500,413,119

Accumulated amortisation

Opening balance - 383,865,326 188,670,686 89,794,389 22,316,296 3,791,608 44,077,926 3,228,536 735,744,767

Charge for the year - 19,933,985 47,063,729 42,598,930 36,595,677 6,295,853 73,190,095 1,876,830 227,555,099

Currency translation differences - (27,736,818) - (10,996,472) (4,821,220) (781,787) (9,088,377) (189,483) (53,614,157)

Closing balance - 376,062,493 235,734,415 121,396,847 54,090,753 9,305,674 108,179,644 4,915,883 909,685,709

Net book value

Opening balance 71,973,549 40,952,390 399,700,132 596,038,148 1,098,162,565 226,325,641 1,501,510,150 23,256,824 3,957,919,399

Closing balance 31,680,480 25,218,728 556,920,796 500,728,208 962,306,014 199,435,817 1,293,837,635 20,599,732 3,590,727,410

11. Tangible fixed assets

Included in the cost of tangible fixed assets of the Group were assets costing VND98,143 million which were fully depreciated as at 31 December 2021 (1/1/2021: VND73,443 million), but which are still in active use.

At 31 December 2021, tangible fixed assets with carrying value of VND10,323 billion were pledged with banks as security for long-term bonds issued by NPM and the Company (1/1/2021: VND10,832 billion) (Note 20(b)).




12. Intangible fixed assets

Included in the cost of intangible fixed assets were assets costing VND18,005 million which were fully amortised as at 31 December 2021 (1/1/2021: VND15,291 million), but which are still in use.

At 31 December 2021, intangible fixed assets with carrying value of VND571 billion were pledged with banks as security for long-term bonds issued by NPM and the Company (1/1/2021: VND422 billion) (Note 20(b)).

(*) Development cost includes completed projects related to troubleshooting used in the production process of the subsidiaries.





Buildings and structures

VND’000Land

VND’000Total

VND’000

Cost

Opening balance - - -

Reclassification from tangible fixed assets (Note 11) 1,220,893,978 - 1,220,893,978

Reclassification from intangible fixed assets (Note 12) - 37,535,619 37,535,619

Currency translation differences (98,768,634) (3,486,710) (102,255,344)

Closing balance 1,122,125,344 34,048,909 1,156,174,253

Accumulated amortisation


Charge for the year 65,789,575 - 65,789,575

Reclassification from tangible fixed assets (Note 11) 315,295,303 - 315,295,303

Currency translation differences (25,457,933) - (25,457,933)

Closing balance 355,626,945 - 355,626,945

Net book value


Closing balance 766,498,399 34,048,909 800,547,308

2021 2020VND’000 VND’000

Opening balance 1,467,480,229 1,694,487,259

Additions during the year 771,654,960 554,779,318

Increases from business combination - 112,549,289

Transfer to tangible fixed assets (Note 11) (392,432,997) (849,022,981)

Transfer to intangible fixed assets (Note 12) (3,717,151) (5,097,779)

Transfer to long-term prepaid expenses (Note 15) (560,333,761) (8,934,805)

Transfer to short-term prepaid expenses - (37,931,144)

Reclassification to other long-term receivables (120,700,853) -

Currency translation differences (4,466,239) 6,651,072

Closing balance 1,157,484,188 1,467,480,229

31/12/2021 1/1/2021

VND’000 VND’000Land compensation 337,970,014 774,195,509

Site clearance, relocation infrastructure and others 194,478,207 209,074,215

Plant, machinery and equipment 477,823,887 151,254,220

Tailing dams - 25,288

Other assets 147,212,080 332,930,997

1,157,484,188 1,467,480,229




13. Investment properties

Cost of investment property is determined at fair value of assets at HCS’s acquisition date.

14. Construction in progress

During the year, borrowing costs capitalised into construction in progress amounted to VND29 billion (2020: VND34 billion).

As at the reporting date, construction in progress of NPM, which mainly represented land compensation, mine and plant development cost and other capitalised costs pertaining to tailing dams, have been pledged with banks as security for long-term bonds issued by NPM (Note 20(b)).

Major constructions in progress were as follows:




Investment properties held to earn rental


Prepaid land cost and land

compensation costs

Other mining costs

Incremental costs of obtaining contract (*)

Others Total


Opening balance 948,324,935 1,581,256,191 181,973,835 194,339,177 2,905,894,138

Additions - 205,410,232 - 45,836,483 251,246,715

Transfer from construction inprogress (Note 14)

433,138,222 106,227,414 - 20,968,125 560,333,761

Transfer from long-term receivables 77,591,432 - - - 77,591,432

Amortisation for the year (79,827,650) (131,046,398) (24,941,561) (72,267,295) (308,082,904)

Closing balance 1,379,226,939 1,761,847,439 157,032,274 188,876,490 3,486,983,142

31/12/2021 1/1/2021VND’000 VND’000

Third parties

Advance from sales of Fluorspar product - 645,340,981

Advance from sales of Bismuth product 10,884,532 103,650,397

Others 23,824,819 206,743,844

34,709,351 955,735,222

1/1/2021 Incurred Paid/Offset Other movements

Currencytranslationdifferences

31/12/2021

VND’000 VND’000 VND’000 VND’000 VND’000 VND’000

Tax payables to VietnameseState Treasury

Value added tax - 456,402,747 (456,402,747) - - -

Import-export tax - 201,218,547 (201,218,547) - - -

Corporate income tax 454,802 21,689,161 (21,045,626) - - 1,098,337

Environment protection tax - 63,532,212 (63,532,212) - - -

Personal income tax 8,781,303 99,662,969 (99,278,164) - - 9,166,108

Natural resource tax - 282,373,179 (282,373,179) - - -

Other taxes 3,863,318 17,017,626 (16,133,073) - - 4,747,871

13,099,423 1,141,896,441 (1,139,983,548) - - 15,012,316

Tax payables to foreign tax authorities

Corporate income tax 101,345,073 38,017,922 (102,233,347) 45,401,147 (103,976) 82,426,819

Other taxes 48,232,285 346,012,147 (279,533,109) (45,401,147) 209,243 69,519,419

149,577,358 384,030,069 (381,766,456) - 105,267 151,946,238

162,676,781 1,525,926,510 (1,521,750,004) - 105,267 166,958,554

15. Long-term prepaid expenses

16. Advance from customers - short-term

Advance from sales of Fluorspar and Bismuth shall be discharged through monthly instalments through subsequent deliveries.

(*) In September 2020, a subsidiary incurred costs to terminate its long-term offtake agreement with an existing customer in order to obtain a more favourable contract with another. This cost is incremental costs of obtaining contract, thus is capitalised and amortised on a systematic basis consistent with the transfer of the goods under new contract with another customer.




17. Taxes payable to State Treasury





31/12/2021 1/1/2021

VND’000 VND’000

Short-term:

Amounts due to Masan Group Corporation(“MSN”) – the ultimate parent company

Financial expenses – short-term (a) 9,781,016 244,123,839

Amounts due to Masan Horizon Company Limited (“MH”) –the immediate parent company

Non-trade – short-term (b) 2,511,785 2,511,785

31/12/2021 1/1/2021

VND’000 VND’000

Operating costs 437,977,940 563,082,117

Accrued interest payable 214,245,456 228,436,211

Accrual for other financing costs 1,791,962 14,691,057

Share issuance fee - 42,624,809

Consultant fee 474,240 42,620,276

Natural resource taxes and fees 159,686,751 25,766,750

Bonus 180,705,685 15,469,188

Accrual for construction work 3,364,036 10,576,562

Others 2,298,368 1,380,829

1,000,544,438 944,647,799

19. Other short-term payables

Other payables included the following amounts:

Other payable to other parties

Payable for termination of off-take agreement with customer - 47,056,004

Usance LC payable at sight (UPAS LC) – short-term (c) 316,882,305 -

Other payables – short-term 13,180,357 12,991,835

342,355,463 306,683,463

(a) Under agreement with MSN – the ultimate parent company, these amounts were unsecured, interest-free.

(b) Amounts due to related parties were unsecured, interest-free and repayable based on agreement between the parties.

(c) Amounts due to local banks that issued UPAS LC to MTC, a subsidiary of Group (Note 36). The outstanding balances bear fixed rates over the deferred payment period of 6 months and are secured by 60 million shares of the Company held by MH (Note 20(a)).

18. Accrued expenses








31/12/2021 1/1/2020Currency VND’000 VND’000

Secured bank loan (i) USD 349,968,164 1,135,396,849Secured bank loan (i) VND 908,780,000 -Secured bank loan (ii) USD 99,247,616 -Secured bank loan (iii) VND 966,211,032 895,817,351Secured bank loan (iv) USD 462,795,428 333,766,713Secured bank loan (iv) VND 974,000 286,954,000Secured bank loan VND - 190,352,000Unsecured bank loan (v) VND 35,000,000 100,589,728Unsecured bank loan (v) USD 291,496,322 96,054,387Secured bank loan (vi) USD 55,056,000 125,712,990Secured bank loan (vii) VND 107,331,633 -Secured bank loan (vii) USD 334,198,913 -Secured bank loan (viii) VND 8,895,279 -Loan from related party (ix) VND 181,676,000 -

3,801,630,387 3,164,644,018

31/12/2021

Carrying amount and amount

within repayment capacity

Additions Payments Reclassification from long-term

borrowings

Carrying amount and amount within

repayment capacity


Short-term borrowings 3,164,644,018 5,608,097,474 (4,966,849,015) (4,262,090) 3,801,630,387

Current portion of long-termborrowings (Note20(b))

998,222,222 1,000,240,564 (1,000,000,000) - 998,462,786

4,162,866,240 6,608,338,038 (5,966,849,015) (4,262,090) 4,800,093,173

20. Borrowings and bonds(a) Short-term borrowings and bonds

Terms and conditions of short-term borrowings at respective reporting dates were as follows:

(i) The USD and VND denominated loans from a related party bore interest ranging from 3.34% to 4.07% per annum for USD loan and 4.1% per annum plus a margin based on some foreign exchange rates agreed by a subsidiary and the bank for VND loan, respectively (1/1/2021: 3.45% to 4.93%).

(ii) The USD denominated loan from a related party bore interest 3.92% per annum. The above loans as a(i) and a(ii) are secured by part of short-term receivables of a subsidiary and 79 million shares of the Company held by the

immediate parent company.

(iii) The loan from a local bank is secured by inventories, a part of short-term receivables and assets of a subsidiary with the total value equal to 2 times of the credit limit and guaranteed by MSN. Specific loans in VND bore interest ranging from 6.2% to 7.3% per annum (1/1/2021: 7.0% to 7.5%).

(iv) Specific loans in USD and VND by a subsidiary bore interest ranging from 4.0% to 5.3% and from 7.7% to 8.7% per annum, respectively (1/1/2021: 5.1% to 6.1% and 7.7% to 9.3%). The loan is secured by 85 million shares of the Company held by the immediate parent company.

(v) The loan from two branches of a foreign bank in Vietnam by a subsidiary, are unsecured. Specific drawdown in USD and VND bore interest ranging from 3.05% to 3.5% and from 4.7% to 5.4% per annum, respectively (1/1/2021: 3.08% to 4.57% and 4.7% to 6.8%).

(vi) The USD denominated loan from a foreign bank in Vietnam by a subsidiary is secured by part of short-term receivables and all operating bank accounts of a subsidiary opened at the bank. Specific loans drawn down in USD bore interest ranging from 3.0% to 3.7% per annum (1/1/2021: 2.22% to 4.3%).

(vii) Specific loans in USD and VND by a subsidiary bore interest ranging from 4.6% to 5.1% per annum and 7.2% per annum, respectively.

(viii) Specific loan VND by a subsidiary bore interest ranging from 7.2% to 7.25% per annum. The above loans as a(vii) and a(viii) and a part of the outstanding UPAS LC (Note 19) are secured by 60 million shares of the Company held by

the immediate parent company.

(ix) The loans from MSN – the ultimate parent company are unsecured, receivable in 12 months after drawdown dates with interest rates agreed in the agreements at the transaction dates.







1/1/2021 Movements during the year


31/12/2021 1/1/2021

VND’000 VND’000

Long-term bonds issued 10,236,665,680 10,218,664,742

Repayable within twelve months (Note 20(a)) (998,462,786) (998,222,222)

Repayable after twelve months 9,238,202,894 9,220,442,520

Year of 31/12/2021 1/1/2021maturity VND’000 VND’000

Secured bond issued (a) 2023 498,669,652 497,829,434

Secured bond issued 2021 - 998,222,222

Secured bond issued (b) 2023 1,495,600,000 1,493,200,000

Secured bond issued (c) 2024 498,030,696 497,186,709

Secured bond issued (d) 2022 299,718,671 298,874,684

Secured bond issued (e) 2022 199,765,559 199,202,900

Secured bond issued (f) 2024 498,133,333 497,333,333

Secured bond issued (g) 2022 99,795,510 99,488,774

Secured bond issued (h) 2022 189,611,468 189,028,670

Secured bond issued (i) 2022 209,571,578 209,000,349

Secured bond issued (j) 2023 992,000,000 1,577,600,000

Secured bond issued (k) 2023 1,587,200,000 986,000,000

Secured bond issued (l) 2023 693,700,000 689,638,629

Secured bond issued (m) 2023 996,000,000 993,333,333

Secured bond issued (n) 2023 995,541,561 992,725,705

Secured bond issued (o) 2024 983,327,652 -

10,236,665,680 10,218,664,742

Terms and conditions of outstanding long-term bonds denominated in VND were as follows:

(b) Long-term bonds

(a) The VND denominated bonds issued by a subsidiary with a five-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.25%. The bond proceeds were used by a subsidiary and secured by 51.6 million shares of the Company held by the immediate parent company.

(b) The VND denominated bonds issued by the Company with a five-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.25%. The bond was secured by a part of certain long-term assets of a subsidiary (Note 11, Note 12 and Note 14).

(c) The VND denominated bonds issued by a subsidiary with a five-year term bore interest rate of 10.2% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.3%. The bond was secured by 55.6 million shares of the Company held by the immediate parent company.

(d) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.1%. The bond was secured by 31.2 million of the Company held by the immediate parent company.

(e) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.1%. The bond was secured by 20.8 million shares of the Company held by the immediate parent company.

(f) The VND denominated bonds issued by the Company with a five-year term bore interest rate of 10.2% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.3%. The bond was secured by a part of certain long-term assets of a subsidiary (Note 11, Note 12 and Note 14).

(g) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.1%. The bond was secured by 10.7 million shares of the Company held by the immediate parent company.

(h) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.1%. The bond was secured by a part of certain long-term assets of a subsidiary (Note 11, Note 12 and Note 14).








Tax rate 31/12/2021 1/1/2021

VND’000 VND’000

Deferred tax assets:

Remeasurement of provision for pension liabilities 30% 653,730,131 941,694,831

Tax losses carry-forwards 30% 181,477,931 187,383,399

Unrealized gain on intra-group transactions 10% 2,537,590 -

Pre-existing relationship - Benefit from contract with NPM 30% 16,036,546 20,045,683

Accruals, provisions and others (*) 30% 33,723,569 58,298,409

Net-off 30% (590,701,894) (513,938,646)

Total deferred tax assets 296,803,873 693,483,676

Deferred tax liabilities:

Mineral reserves and mineral resources 15% 529,951,719 552,077,034

Unrealized loss on intra-group transactions 10% - 15% 11,438,679 45,054,074

Newly identified intangible assets from business combination 25% - 30% 878,862,616 1,010,890,563

Newly identified tangible assets from business combination (*) 15% - 30% 635,445,223 713,331,143

Others (*) 30% 103,244,010 (12,320,767)

Net-off 30% (615,032,281) (466,198,512)

Total deferred tax liabilities 1,543,909,966 1,842,833,535

(i) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.1%. The bond was secured by 22.3 million shares of the Company held by the immediate parent company.

(j) The VND denominated bonds issued by a subsidiary with a three-year term bear interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.2%. The bond was guaranteed by MSN – the ultimate parent company and secured by a part of certain long-term assets of a subsidiary (Note 11, Note 12 and Note 14).

(k) The VND denominated bonds issued by a subsidiary with a three-year term bear interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.2%. The bond was guaranteed by MSN and secured by a part of certain long-term assets of a subsidiary (Note 11, Note 12 and Note 14).

(l) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.2%. The bond was guaranteed by MSN and secured by a part of certain long-term assets of a subsidiary (Note 11, Note 12 and Note 14).

(m) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.1%. The bond was secured by 107.9 million shares of the Company held by the immediate parent company.

(n) The VND denominated bonds issued by a subsidiary with a three-year term bore interest rate of 10% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.1%. The bond was secured by 107.9 million shares of the Company held by the immediate parent company.

(o) The VND denominated bonds issued by the Company with a three-year term bore interest rate of 9.2% per annum for the first twelve months. After the first twelve months, the applicable interest rate per annum will be adjusted every six months and calculated as the average twelve-month saving deposit rate of related reference banks plus 3.625%.The bond was secured by a part of certain long-term assets of a subsidiary (Note 11, Note 12 and Note 14).

These secured bonds in the consolidated financial statements were reported net of bond arrangement fees.

The representatives of the bondholders of bonds in all disclosed notes above are Techcom Securities JSC – the ultimate parent company’s associate.

21. Deferred tax assets, liabilities and unrecognised deferred tax assets

(a) Recognised deferred tax assets and liabilities

(*) Deferred tax assets and liabilities includes items mainly arose from HCS and its subsidiaries. These items were presented on a net basis because the subsidiaries have a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authorities on the same taxable entities.








Mine rehabilitation

Mining rights

Pensions and others Total

VND’000 VND’000 VND’000 VND’000

Opening balance 103,800,498 390,248,573 6,963,327,331 7,457,376,402

Provision made during the year 4,899,383 216,015,571 17,683,356 238,598,310

Remeasurement of provision for pensions (*) - - (483,845,303) (483,845,303)

Provision used during the year - (73,145,650) (201,538,021) (274,683,671)

Currency translation differences - - (586,720,592) (586,720,592)

Closing balance 108,699,881 533,118,494 5,708,906,771 6,350,725,146

1/1/2021 Recognised in consolidated

statementof income

Recognised in equity

31/12/2021

VND’000 VND’000 VND’000 VND’000

Mineral reserves and mineral resources (552,077,034) 22,125,315 - (529,951,719)

Unrealized (loss)/profit on intra-group transactions (45,054,074) 36,152,985 - (8,901,089)

Pre-existing relationship asset 20,045,683 (4,009,137) - 16,036,546

Remeasurement of provision for pension liabilities (**) 941,694,831 106,038,210 (394,002,910) 653,730,131

Tax losses carry-forwards 187,383,399 3,691,092 (9,596,560) 181,477,931

Identified intangible assets from business combination (1,010,890,563) 44,318,402 87,709,545 (878,862,616)

Identified tangible assets from business combination (713,331,143) 27,204,558 50,681,362 (635,445,223)

Accrual, provisions and others 22,879,042 (71,206,627) 3,137,531 (45,190,054)

(1,149,349,859) 164,314,798 (262,071,032) (1,247,106,093)

(b) Movement in temporary differences during the year

(**) Deferred tax recognised in equity also included the relevant deferred tax of the remeasurement of the net defined benefit obligation - provision for pensions. As explained in Note 3(l), these amounts are recognised in equity under the caption “Other equity funds” in accordance with a ruling from the Ministry of Finance.

(*) As explained in Note 3(m)(iii), the remeasurement of the net defined benefit obligation - provision for pensions and the relevant deferred tax are recognised in equity under the caption “Other equity funds” in accordance with a ruling from the Ministry of Finance.

Movements of long-term provisions during the year were as follows:

22. Provisions – long-term








Share capital Share premium

Other capital Foreign exchange

differences

Other equity funds

Undistributed profit after tax

Equity attribut-able to equity holders of the

Company

Non-controlling interest

Total equity

VND’000 VND’000 VND’000 VND’000 VND’000 VND’000 VND’000 VND’000 VND’000

Balance at 1 January 2020 9,892,398,780 145,709,384 (295,683,347) - - 2,727,397,449 12,469,822,266 - 12,469,822,266

Net profit for the year - - - - - 39,195,963 39,195,963 12,594,995 51,790,958

Increases from business combination

- - - - - - - 49,291,905 49,291,905

New shares issuance 1,099,155,420 995,175,317 - - - - 2,094,330,737 - 2,094,330,737

Transaction fee for new shares issuance

- (42,624,809) - - - - (42,624,809) - (42,624,809)

Remeasurement of provision for pensions

- - - - (358,967,342) - (358,967,342) - (358,967,342)

Foreign exchange differences - - - (189,058,584) - - (189,058,584) 4,955,904 (184,102,680)

Balance at 1 January 2021 10,991,554,200 1,098,259,892 (295,683,347) (189,058,584) (358,967,342) 2,766,593,412 14,012,698,231 66,842,804 14,079,541,035

Net profit for the year - - - - - 195,611,320 195,611,320 65,512,309 261,123,629

Remeasurement of provision for pensions

- - - - 188,714,955 - 188,714,955 - 188,714,955

Foreign exchange differences - - - (176,770,526) - - (176,770,526) (11,429,769) (188,200,295)

Balance at 31 December 2021 10,991,554,200 1,098,259,892 (295,683,347) (365,829,110) (170,252,387) 2,962,204,732 14,220,253,980 120,925,344 14,341,179,324

31/12/2021 1/1/2021

Number of shares VND’000 Number of shares VND’000

Authorised share capital 1,099,155,420 10,991,554,200 1,099,155,420 10,991,554,200

Issued share capital

Ordinary shares 1,099,155,420 10,991,554,200 1,099,155,420 10,991,554,200

Shares in circulation

Ordinary shares 1,099,155,420 10,991,554,200 1,099,155,420 10,991,554,200

Share premium - 1,098,259,892 - 1,098,259,892

23. Changes in equity

The Company’s authorised and issued share capital comprised:

24. Share capital

All ordinary shares have a par value of VND10,000. Each share is entitled to one vote at meetings of the Company. Shareholders are entitled to receive dividends as declared from time to time. All ordinary shares are ranked equally with regard to the Company’s residual assets. In respect of shares bought back by the Company, all rights are suspended until those shares are reissued.

Share premium represents the excess of the proceeds on issuance of shares over the par value.

Included in the shares in circulation are 109,915,542 of ordinary shares issued to Mitsubishi Material Corporation (the Investor) on 26 October 2020 for the consideration of VND2,094,330,737,268. In relation to this issuance, the Company also granted a put option to the Investor. In the event that (i) the Company and the Investor (or their affiliate) fail to establish a joint operation of midstream tungsten business after closing date of the above share issuance or (ii) if there is a change in control in the Company, the Investor will have an irrevocable right to request the Company or its nominee to purchase all shares issued above at the amount equal to consideration of VND2,094,330,737,268 less the aggregate of any proceeds received by the Investor from disposing the Company’s shares, dividends and distributions paid by the Company subject to customary adjustments from dilutive events. The deadline to take actions necessary to effect the completion of the put option is 18 months from the date that the Company receives put option exercise notice from the Investor. The exercise of the put option will be subject to approval of Board of Directors, shareholders and Vietnamese regulators.








31/12/2021 1/1/2021

VND’000 VND’000

Within one year 12,080,324 16,497,931

Within two to five years 14,967,391 16,599,443

27,047,715 33,097,374

31/12/2021 1/1/2021Original

currencyVND’000

equivalentOriginal

currencyVND’000

equivalent

USD 14,045,416.12 318,128,675 12,139,880.37 279,035,150

EUR 8,071,721.05 205,570,592 10,166,623.19 285,438,113

JPY 341,132,473.00 66,309,330 149,538,241.00 33,004,585

CNY 8,405,767.48 28,495,552 10,586,982.83 36,747,417

CAD 451,969.71 7,970,486 763,488.94 13,650,419

31/12/2021 1/1/2021

VND’000 VND’000

Bad debts written off 30,294,111 21,507,965

31/12/2021 1/1/2021

VND’000 VND’000

Approved but not contracted 48,661,006 176,985,972

Approved and contracted 42,650,549 85,765,512

91,311,555 262,751,484

2021 2020

VND’000 VND’000

Call option fee - 406,473,000

Foreign exchange gains 333,321,053 187,623,389

Interest income from deposit and loans 11,226,946 52,304,346

Others 74,947 81,613

344,622,946 646,482,348

25. Off balance sheet items(a) Lease

The future minimum lease payments under non-cancellable operating leases were:

(b) Foreign currencies

(c) Bad debts written off

(d) Capital expenditure commitments

As at 31 December 2021 the Group had the following outstanding capital commitments approved but not provided for in the balance sheet:







(e) Final sales pricing adjustment

As disclosed in Note 3(q), the Group had the commitments under sales contract to adjust the sales price of its product sold based on future quoted market price at the London Metal Bulletin (“LMB”) at the agreed final pricing date. The revenue on provisionally priced sales is initially recognised based on the estimated fair value of the total consideration receivable. Such revenue is subject to adjustment at the final pricing date subsequent to end of the accounting period.

There is no revenue recognised on a provisional basis as at 31 December 2021 (1/1/2021: Nil).

Total revenue represents the gross value of goods sold and services rendered exclusive of value added tax and export tax.

26. Revenue from sales of goods and provision of services

27. Financial income


2021 2020VND’000 VND’000

Interest expense 1,076,266,273 1,199,925,907

Borrowing fees 69,055,054 78,922,551

Foreign exchange losses 172,839,989 230,948,527

Others 117,290,888 143,171,014

1,435,452,204 1,652,967,999

2021 2020

VND’000 VND’000

Freight charges 230,927,869 129,429,031

Outside services 81,969,934 33,076,145

Depreciation expenses 7,503,098 3,696,804

Salary expenses 76,581,084 3,517,901

Others 48,640,408 56,504,185

445,622,393 226,224,066

2021 2020

VND’000 VND’000

Office supplies 55,680,642 34,849,671

Outside services 45,511,156 32,536,700

Depreciation expenses 75,048,753 33,890,379

Salary expenses 330,781,719 123,630,449

Tax and legal fees 8,289,893 5,267,848

Others 122,718,517 51,974,021

638,030,680 282,149,068

2021 2020

VND’000 VND’000

Gain from bargain purchase from business combination - 1,298,081,205

Insurance claims 87,316,300 -

Gain on scrap sales 10,795,294 1,462,130

Gain on disposal of fixed assets 121,641 12,478,204

Other 43,939,657 16,964,529

142,172,892 1,328,986,068

28. Financial expenses

29. Selling expenses

30. General and administration expenses







31. Other income


2021 2020

VND’000 VND’000

Accounting profit/(loss) before tax 156,515,914 (96,210,839)

Tax at the Company tax rate 31,303,183 (19,242,167)

Non-deductible expenses 4,984,153 7,151,662

Tax incentives (27,844,449) -

Effect of different tax rates in subsidiaries (215,184,381) 7,635,516

Tax exempt income - (259,616,241)

Tax losses utilised (24,856,632) -

Over provision for prior years (158,554) (4,225,330)

Write down of deferred tax assets 35,745,813 -

Change in unrecognised deferred tax assets arise from temporary differences 91,403,152 120,294,763

(104,607,715) (148,001,797)

2021 2020VND’000 VND’000

Current tax expense

Current year 59,865,637 24,879,988

Over provision for prior years (158,554) (4,225,330)

59,707,083 20,654,658

Deferred tax benefit

Origination and reversal of temporary differences (200,060,611) (168,656,455)

Write down of deferred tax assets 35,745,813 -

(164,314,798) (168,656,455)

Income tax benefit (104,607,715) (148,001,797)

2021 2020VND’000 VND’000

Insurance claims expenses 9,852,770 -

Loss from disposal of fixed assets 1,201,810 8,776,981

Tax penalties - 9,370,848

Others 73,589,141 40,660,742

84,643,721 58,808,571







32. Other expenses

33. Income tax

(a) Recognised in the consolidated statement of income

(b) Reconciliation of effective tax rate

(c) Applicable tax rates

The Company has an obligation to pay the government corporate income tax at the rate of 20% of taxable profits. The Company’s subsidiaries have obligation to pay the government income tax in accordance with the prevailing regulations. The Company’s subsidiaries enjoy various tax incentives which provide subsidiaries with further tax exemption and reductions as follow:

• MTC – a subsidiary enjoys income tax incentives applicable for high-tech investment project under Vietnamese current tax regulations. • NPM – a subsidiary enjoys income tax incentives applicable for mining and processing activities for mineral products other than gold in areas

with extremely difficult socio-economic conditions under Vietnamese current tax regulations.

All of the above tax exemption and reduction are not applicable to other income which is taxed at the standard income tax rate applicable to enterprises before any incentives of 20%.


2021 2020VND’000 VND’000

Net profit for the year 261,123,629 51,790,958

Non-controlling interest (65,512,309) (12,594,995)

Net profit attributable to ordinary shareholders 195,611,320 39,195,963

2021 2020

Issued ordinary shares at the beginning of the year 1,099,155,420 989,239,878

Effect of shares issued on 24 November 2020 - 11,411,996

Weighted average number of ordinary shares for the year ended 31 December 1,099,155,420 1,000,651,874

(d) Tax contingencies

The taxation laws and their application in some countries where the Company and its subsidiaries operate were subject to interpretation and may change over time. The final tax position may be subject to review and investigation by a number of authorities, who are enabled by law to impose severe fines, penalties and interest charges. These facts may create tax risks for the Company and its subsidiaries. Management believes that it had adequately provided for tax liabilities based on its interpretation of tax and legislation, including on transfer pricing requirements and computation of corporate income tax and deferred tax liabilities. However, the relevant authorities may have different interpretations.

HCS and its subsidiaries are based mainly in Germany, Canada, China.

• Companies based in Germany with legal form of corporation are subject to corporation tax of 15% and are then subject to a surcharge of 5.5% (solidarity surcharge). This results in a total tax rate of 15.825%. These companies are also subject to the Trade tax which is a combination of a uniform tax rate of 3.5% (base rate) multiple with municipal tax rate depending on where the companies’ permanent establishment located. The corporate income tax rate are the sum of total rate and the trade tax, which is approximately 30% on average;

• H.C. Starck Jiangwu Tungsten Specialities (Ganzhou), Co., Ltd is subject to corporate income tax of 15% applicable to foreign investment production enterprise and established in Ganzhou, Jiangxi Province of People’s Republic of China;

• H.C. Starck Canada Inc. is subject to corporate income tax rate applicable to Canadian enterprise of approximately 25%.







The calculation of basic earnings per share for the year ended 31 December 2021 was based on the profit attributable to ordinary shareholders of VND195,611 million (2020: VND39,196 million) and a weighted average number of ordinary shares outstanding of 1,099,155,420 shares (2020: 1,000,651,874 shares), calculated as follows:

34. Basic earnings per share

(a) Net profit attributable to shareholders

The Company has no dilutive potential ordinary shares.

(b) Weighted average number of shares

(c) Diluted earnings per share

In addition to related party balances and transactions disclosed in other notes to these consolidated financial statements, the Group had the following significant balances and transactions with related parties during the year.

35. Significant transactions with related parties

As at and for the year ended 31 December 2021, the Group has current and term deposit accounts at Vietnam Technological and Commercial Joint Stock Bank (“TCB”) at normal commercial terms.

As at 31 December 2021, associates of the ultimate parent company held VND464,322 million (1/1/2021: VND161,807 million) of the issued bonds of the Group.

(a) Related party balances


2021 2020Name Position VND’000 VND’000Board of Directors - -Mr. Danny Le Chairman - -Mr. Nguyen Thieu Nam First Vice Chairman - -Mr. Craig Richard Bradshaw Member - -Mr. Akira Osada Member - -Ms. Nguyen Thu Hien Independent member - -Mr. Nguyen Van Thang Member -Chief Executive OfficerMr. Craig Richard Bradshaw Chief Executive Officer (*) 39,110,438 25,157,139

Related Party Nature of transactions 2021 2020

VND’000 VND’000

Ultimate parent company

Masan Group Corporation (“MSN”)Borrowings received 241,676,000 2,181,000,000

Borrowings repaid 60,000,000 2,181,000,000

Interest expense 9,850,057 13,773,529

Loan granted - 1,923,753,425

Loan collected 1,143,479,452 1,780,273,973

Interest income from loan granted 4,342,451 46,098,803

Ultimate parent company’s associate

TCB and its subsidiaries Interest expense and borrowing fees 107,712,636 91,904,512

Borrowings received 1,621,482,534 38,823,600

Borrowings repaid 1,393,426,927 1,777,789,296

Bond proceeds received (i) 1,000,000,000 5,300,138,629

Bond repurchased 109,198,100 1,900,979,224

Purchase of trading securities 212,874,260 -

Sales of trading securities 213,756,230 -

Ultimate parent company’s subsidiary

Masan Consumer Corporation Purchase of goods 1,157,083 1,370,253

Purchase of services 786,573 1,273,609

Key management personnel

Salary, bonus and other benefits (ii) 39,110,438 25,157,139

2021 2020VND’000 VND’000

Payments to suppliers by banks on the Group’s behalf under UPAS LC 801,207,252 -

(b) Related party transactions




(i) The bonds are listed and sold to a broader group of investors pursuant to arrangement agreements.

(ii) No board fees were paid to Board of Directors members for the year ended 31 December 2021 and 31 December 2020.

Included in the remuneration to key management personnel, the actual board fees, salary and bonus for each member of the Company’s Board of Directors and the Company’s Chief Executive Officer during the year were as follows:

(*) Salary and bonus for the Chief Executive Officer of the Company for the year ended 31 December 2021 and 31 December 2020 are paid out by a subsidiary of the Company.




36. Non-cash financing activities


As disclosed in Note 9(a), on 23 August 2021, MONRE has issued Decision 1640/QD/BTNMT (“Decision 1640”) to determine the MRF of Nui Phao Mine, replacing temporary MRF calculation in Decision 500 and Official Letter 3724. MONRE continued to use the taxable price applied for tungsten ore (0.1%< WO3<0.3%) instead of the taxable price applied for industrial products. The official G-price according to Decision 1640 is VND1,831,085 per ton whereases the temporary G-price according to Decision 500 is VND775,026 per ton. The additional MRF due to different G-price during the period from 2015 to 2021 is VND394.5 billion.

After the issuance of Decision 1640, NPM – a subsidiary, submitted several petition letters to the Prime Minister, MONRE to request for delaying the implementation of Decision 1640 and re-determining the MRF price.

On 6 October 2021, NPM received Notification on payment of MRF issued by the Thai Nguyen Tax Department (“TNTD”) to inform the MRF following Decision 1640. On 8 December 2021, TNTD send an Official Letter No 4883/CTTNG-QLN requesting NPM to make payment of MRF of VND125.8 billion equivalent to the shortage of MRF payment for the period from 2018 to 2021, together with an interest on late payment of VND4.1 billion.

Management believes that it had adequately provided for its liabilities for MRF from 2015 up to present based on its interpretation of relevant legislation relating to mining rights and natural resources tax. The Group’s management has been, therefore, also sent letters to different level of authorities to highlight the issues and seek for proper resolutions of NPM’s MRF.

In 2021, as instructed by the Prime Minister under letter 978/VPCP-KTTH dated 8 February 2021 and letter 5987/VPCP-KTTH dated 28 August 2021, the case is under reviewing and working by MOF, MONRE, Thai Nguyen PPC and Thai Nguyen Department of Finance, subject to report to the Prime Minster and National Assembly Committee on Economy. By reporting date, MONRE and Thai Nguyen PPC are working together to calculate the taxable price applied for NPM’s industrial products.

The management assessed that because the taxable price applied for NPM’s industrial products has not yet been determined by MONRE and Thai Nguyen PPC, the G price which serves as the basis for computation of MRF under Decision 1640 is not in accordance with the prevailing laws and regulations. It, therefore, believes that once the taxable price applied for NPM’s industrial products are available, the official MRF for Nui Phao mine from 2015 onwards will be re-determined, replacing amount as stated in Decision 1640.

The ultimate outcome of the matter is presently not determined and may be subject to final taxable price applied for NPM’s industrial products and its ability to request MONRE to recalculate the MRF in Decision 1640. Accordingly, no provision for the additional MRF during the period from 2015 to 2021 as in Decision 1640 has been made in the consolidated financial statements.

37. Contingent liabilities







Comparative information as at 1 January 2021 was derived from the balances and amounts reported in the Group’s consolidated financial statements for the year ended 31 December 2020.

38. Comparative information

11 March 2022

Prepared by:



Reviewed by:


Approved by:

GENERALINFORMATION

Vision & Mission

Company Profile

Company History

Flagship Assets

Our Products

Shareholders Information

244

245

246

248

252

264

General Information 243

VISION AND MISSION

To be the leading integrated supplier of high-tech advanced materials critical to global innovation.

We aim to be the partner of choice to high-tech industries where our products are a key component in evolving and shaping the future of our world. Through the application of our materials, we will create unparalleled solutions to drive innovation and productivity which will deliver superior outcomes for all our partners and stakeholders.

OUR PURPOSE

During 2021 we continued to reshape our business, strengthening our executive by reshaping it to include two new roles: Global HR Director, and, Director of Projects. These roles reflect both the global nature of the business along with the organizational need to be ready to adapt for significant future change. Importantly we were able to have 5 members of Exco physically in our Goslar operations for several weeks working directly with functional reports, with a smaller group then making a shorter visit to Sarnia.

OUR VALUES

RESPECTWe believe caring for people, environment and community results in mutually beneficial relationships.

INNOVATIONWe strive for excellence in everything we do.

RESULTSWe are passionate about exceeding expectations.

OURVALUES

ECONOMY

SOCIETY ENVIRONMENT

RESP

ECT INNOVATION

RESULTS

COMPANY PROFILE

ENTERPRISE REGISTRATION CERTIFICATE

No. 0309966889 issued by the Department of Planning and Investment of Ho Chi Minh City on April 27, 2010, amended for the 19th time on February 11, 2022.

CHARTER CAPITAL VND 10,991,554,200,000

STOCK CODE ON HNX-UNLISTED PUBLIC COMPANY MARKET (UPCOM):MSR

NAME OF THE COMPANY

Công ty Cổ phần Masan High-Tech Materials

ENGLISH NAME

Masan High-Tech Materials Corporation

ABBREVIATED NAME

Masan High-Tech Materials

ADDRESS

Suite 802, 8th Floor, Central Plaza, 17 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

TELEPHONE +84 28 6256 3862

FAX +84 28 3827 4115

WEBSITE www.masanhightechmaterials.com

STRATEGIC PILLARS FOR GROWTH

Sustainability Innovation CustomerSolutions Focus

MISSION

VISION

Masan High-Tech Materials244 General Information 245

COMPANY HISTORY

2011

2012

2013

2014

2015

• Acceleration of project development for the Nui Phao Project.

• In December, the National Mineral Reserves Assessment Council acknowledged the results of the Nui Phao Project’s resources and reserve grade conversion.

• In February, MOIT’s official approval of the Nui Phao Project’s basic mine design was obtained.

• In August, the Company received Investment Certificate No. 41122000131 from the People’s Committee of Ho Chi Minh City.

• The Nui Phao Project started commercial production of Tungsten Concentrate and Copper Concentrate on March 1, Fluorspar Acid Grade on June 1, and Bismuth Concentrate on September 1.

• Established Nui Phao – H.C.Starck Tungsten Manufacturing LLC (“NHTCM”), a joint venture with HC Stark GmBH of Germany to construct and operate an advanced Tungsten Chemical factory in Vietnam.

• Record production achieved for all four commodities. NHTCM applied for and obtained the Certificate of High Tech issued by Ministry of Science and Technology on April 24.

• Achieved design capacity and successfully commissioned the NHTCM Tungsten Chemical factory. Initiatives in committing for further developing in processing and increasing performance efficiency.

• In September, the Company successfully completed its listing on Hanoi’s UPCOM exchange.

• In September, the Company hosted the 28th International Tungsten Association (ITIA) annual meeting, attended by over 120 global delegates.

The Company was established on April 27, 2010 focused on mining and resources extraction activities as part of the Masan Group.Significant events in the Company’s business are set out below:

“

2017

2018

2019

2020

2021

2016 • Successfully held the first AGM after listing on April 22; ranked as premium on the UPCOM Board of the Hanoi Stock Exchange.

• Commercial production of Bismuth Cement started from July 1.

• Continued innovating and investing in upgrading with new processes and technology, cost saving, change in business process, developed engagement and cooperation with NHTCM and has significantly advanced the production volume and revenue of the value-added tungsten chemical products.

• In December, Masan Group, through its wholly owned subsidiaries, successfully completed the tender offer for shares of the Company, thereby providing an exit to Mount Kellett and increasing its ownership in the Company to 93.78%, paving the way for the next round of strategic capital and growth.

• Upgrades undertaken on the tungsten circuit have resulted in tungsten recovery increase to 67% with room for further improvement through optimization measures.

• A significant price increase across all commodities of the Company coupled with an increased operational efficiency allowed the Company to achieve record results in all aspects of production, revenue and net profit.

• The Company’s global brand recognition, underpinned by high quality and reliable products resulted in oversubscribed order book with new customers.

• Commenced procuring third party tungsten raw materials for processing in the NHTCM factory.

• 2018 Acquired H.C. Starck GmbH’s 49% stake in NHTCM for total cash consideration of USD29.1 million. Subsequent to acquisition, the name of NHTCM has been changed to Masan Tungsten Limited Liability Company (“MTC”).

• Increased the third-party raw material procurement by 300% in order to maximize utilization at the MTC as well as to satisfy the growing demand for tungsten chemical products.

• Company achieved record annual results in all aspects of production, revenue and net profit.

• Entered into an agreement to purchase the tungsten business of H.C. Starck Group GmbH – a leading manufacturer of high-tech tungsten metal powder and carbides in the world.

• In December 2019, MTC obtained the Decision of Thai Nguyen People’s Committee on amendment of the Investment Certificate which registered capacity of ST, APT and BTO/YTO are 1,067 tonnes; 8,278 tonnes; 5,000 tonnes per year respectively depending on the production plan and grade.

• In December 2019, the Ministry of Science and Technology issued High-Tech Enterprise Certificate to MTC.

• In June, MSR through its wholly owned subsidiary MTC completed the acquisition of H.C. Starck GmbH’s global Tungsten business.

• In June, the Company’s name was approved to be changed to Masan High-Tech Materials Corporation (MHT) at the Company’s Annual General Meeting of Shareholders. This change of company name was officially effective from 6 August 2020 after the Department of Planning and Investment of Ho Chi Minh City issued the Enterprise Registration Certificate amended for the 17th time.

• In December 2020, the Company completed a private placement of shares to Mitsubishi Materials Corporation (“MMC”), making MMC the second largest shareholder owning 10% of the Company’s total fully diluted shares.

• Approved the maximum ratio of 49% of foreign ownership of the Company at 2021 Annual General Meeting of Shareholders of the Company.

• The integration of H.C. Starck’s Tungten business into MHT has vindicated its effectiveness, the Company achieved net revenue of VND 13.564 billion in 2021.

The integration of H.C. Starck’s Tungten business into MHT has vindicated its effectiveness, the Company achieved net revenue of VND 13.564 billion in 2021.

Masan High-Tech Materials246 General Information 247

FLAGSHIP ASSETS

The major project components are:• Open pit poly-metallic mine,

• Waste rock disposal facilities,

• Modern mine plant and facilities, including crushing, grinding, thickening, flotation, leaching and gravity recovery facilities,

• A suite of commercial product streams including Tungsten, Copper, Bismuth and Fluorspar concentrates which are either processed into value added products onsite (Tungsten and Bismuth) or sold as high- end commodities,

• A Tailings Storage Facility (TSF) with water and tailings management ponds,

• Buffer zones, relocation sites, haul roads, and mine services.

Products from Nui Phao are shipped to worldwide markets (including well established customer networks) from Quang Ninh Port (in Ha Long City, 197 km to the southeast of the Project site). The port is also used to receive equipment and materials required to run the mine.

NPMC operates at the cutting edge of production of its product suite. Investment in research and development continues to deliver processing, equipment, and chemical improvements. Processing operations are supported by advanced mining and processing management software to maximize recovery and minimize costs and resource loss.

Nui Phao Mining Company Ltd (NPMC)

The Nui Phao mine, which is operated by Nui Phao Mining Company Ltd. (“NPMC”), a wholly owned subsidiary of Masan High-Tech Materials, is situated within three communes (Hung Son, Ha Thuong, and Tan Linh) of Dai Tu district in Thai Nguyen province. The site is approximately 80 km from Hanoi and is accessible via highway. Road and rail links connect the mine to the nearest ports of Hai Phong and Quang Ninh province, from which the products can be shipped to international customers.

Masan Tungsten Limited Liability Company (MTC)

MTC produces high purity, world-competitive tungsten products while operating in Vietnam using local and international technical knowledge. This places it among the few tungsten suppliers outside of China who are directly connected to a resource base. The four main products of the MTC facility used in production of Tungsten and Tungsten Carbides are: APT (Ammonium Paratungstate); BTO (Blue Tungsten Oxide); YTO (Yellow Tungsten Oxide) and ST (Sodium Tungstate).

The MTC factory has the advantages of secured long term supply source (NPMC) with modern production facilities able to produce high quality products tailored to specific requirements of individual customers,

• Positive market reputation by affiliation with a technology and skills provider – H.C. Starck which has 100 years of experience and is a leading premium supplier of Tungsten products,

• Processing technology transfer from H.C. Starck Germany,

• Enhanced processing capacity in line with tungsten market and customer demands,

• Low conversion costs and preferential tax policies,

• Low grade tungsten sources treated into high end specific products,

• Opportunities for further development of in-country tungsten recycling process.

These factors have accelerated the acceptance of a Vietnamese business to the world’s Tungsten producer map as well as contributed to improved sales performance.

Masan Tungsten Limited Liability Company was established in 2014 as a Joint Venture with H.C. Starck GmbH, a leading worldwide manufacturer of technological metals and one of the biggest companies in the global Tungsten industry. The objective of the company is to enable advanced processing of Vietnam’s strategic tungsten resources into higher value tungsten chemicals, thus enabling further value extraction from the Vietnamese strategic resources.

In August 2018, NPMC acquired the 49% capital contribution by H.C. Starck GmbH in the Joint Venture. The Joint Venture then changed its name to Masan Tungsten Limited Liability Company. In September 2019, MSR announced the acquisition of H.C. Starck’s global Tungsten Division (“HCS”). In 2021 the MTC plant underwent an optimisation program which has seen a significant capacity expansion to include processing of a wide range of lower grade feed materials. The treatment of low to marginal tungsten grades greatly improves the ability to utilize more of the Nui Phao tungsten ore resource.

Masan High-Tech Materials General Information248 249

H.C. Starck Tungsten Powders (HCS)

H.C. Starck Tungsten Powders (HCS) is a company of the Masan High-Tech Materials Group and is one of the world’s leading manufacturers of high-performance powders of tungsten and its compounds. H.C. Starck Tungsten Powders offers the entire range of products along the tungsten powder value chain, processing both primary and secondary raw materials and turning them into high-quality tungsten chemicals, metal powders and carbides, tailored to individual customer needs.

The company combines a century of experience in tungsten processing with high innovative power and technological expertise. Highly qualified teams in research development and in application technology are dedicated to the solutions of tomorrow.

Sustainability is a significant part of the company strategy. A large proportion of raw materials are obtained through recycling. Security of supply is an important issue in today’s world. H.C. Starck Tungsten Powders has access to primary and secondary raw materials and is therefore independent of sources in China, for example.

H.C. Starck Tungsten Powders employs around 550 people at three production sites in Germany, Canada and China plus sales offices in the U.S. and Japan. The company is headquartered is at its largest production site in Goslar, Germany.

ChemiLytics

ChemiLytics is a company of the Masan High-Tech Materials Group and is one of the largest state of the art industrial scale laboratories in Germany for inorganic elemental analysis and powder characterisation. With 70 highly qualified personnel working in teams operating 7 days a week, ChemiLytics offers analytical services in all market segments from the sunset industries of traditional manufacturing through to sunrise industries such as Additive Manufacturing, Aerospace Applications or E-Mobility. Typical samples analyzed include Tungsten ores, Tantalum and Niobium ores, all refractory powders and scrap, Si3N4, battery precursors etc.

ChemiLytics collaborates with customers allowing customization in service provision from traditional samples submissions through to developing individually customized solutions that can allow for the provision of on-line operational control sample analysis through to having the capability to develop specific analytical and technology applications for customers based on ChemiLytics unique service portfolio such as in the recycling industry.


OUR PRODUCTS

Tungsten, Fluorspar, Copper and Bismuth produced at the Nui Phao mine by Masan High-Tech Materials are the Vietnamese strategic metals that are globally important for many high-tech industries today.

Tungsten (W) Tungsten is a unique element having the highest melting point of all metals (3422°C), a density (19.3 g/cm³) almost twice that of lead, and a hardness close to that of diamond when in tungsten carbide form.

Due to its unique intrinsic properties, tungsten is ideally suited to the needs of all major heavy industries, such as manufacturing, oil & gas, construction, energy, automotive and aviation. Tungsten is also an essential element in the steel industry, where its usage ranges from the production of stainless steel, steel alloys to super alloys.

Tungsten material could come in a variety of forms such as tungsten chemicals, tungsten metal, and tungsten carbide with each form having different characteristics:

Tungsten chemicals: include ammonium paratungstate, ammonium metatungstate, tungstic acid, tungsten oxide, and sodium tungstate with various properties which would be made to fit for consumers’ required specifications.

Ammonium paratungstate is a white, crystalline powder with very high chemical purity. It is needed primarily as a universal intermediate product in the production of tungsten oxides, tungstic acid, ammonium metatungstate, and organometallic components. The compound is also used in catalysis and fine chemistry. Tungstic acid is a very finely grained yellow powder with an extremely narrow grain-size distribution, excellent chemical purity, high reactivity, and a uniform morphology. Its unique production properties allow for special applications in homogeneous and heterogeneous catalysis, fine chemistry, and surface coating technology, as well as in the production of organometallic tungsten compounds.

Tungsten metal: Not only does tungsten have the highest melting point (3,422 °C) and the lowest thermal expansion of any metal it also has a high density (19.3 g/cm³), very high mechanical stiffness, and a very low vapor pressure. Thanks to these and other outstanding properties, tungsten metal is irreplaceable in many key industries.

Tungsten carbide: Tungsten carbide (WC) is a compound of tungsten and carbon. The outstanding characteristic of this material is its hardness, which approaches that of diamond. Tungsten carbide is used primarily in the production of industrial tools and wearing parts that are subject to significant stress. Tungsten carbide in carbide tools makes processes such as the drilling, grinding, and milling of metals much more effective and economical.

With the Thai Nguyen facility together with our German business – H.C. Starck, we can produce raw tungsten material products from either mined tungsten concentrate or from recycled materials, which brings about a higher level of sustainability to the business.

Bismuth (Bi)Bismuth is a minor metal with consumer and industrial applications.

For the consumer, bismuth-based chemicals are used in the health and pharmaceutical sector through radiation protection and medicines for treatment of nausea, indigestion and ulcer diseases. Due to its non-toxicity, it has also found use in cosmetics. Industrially, Bismuth is used as a non- toxic pigment in the production of certain paints and in the manufacture of electrical components. Bismuth is also used as a catalyst for vehicular emissions control, as well as in the production low melting point alloys for the reliable work holding devices for heavy machinery such as turbines.

Fluorspar (CaF2)Fluorspar is an industrial mineral from which the element Fluorine is liberated, with two major downstream uses; the production of Hydrofluoric Acid (HF) which is used as a building block for Fluorine Chemicals, and the production of Aluminium Fluoride (AlF3) which is an important additive for the production of Aluminium by electrolysis. Fluorspar also finds application in various steel and aluminum products, glass and ceramic manufacturing and in the growing nitrogen trifluoride (NF3) sector. Examples of products containing Fluorine includes household and automotive air conditioners, Teflon products fluoxetine medicines, welding rods, glass and ceramics.

Copper (Cu)Copper is a soft, malleable and ductile metal and finds wide use industrially due to its exceptional thermal and electrical conductivity. Copper is also relatively inert and corrosion-resistant and has been shown to have antimicrobial properties.

The largest application for copper is in the manufacture of electrical cables and wiring. The construction industry is also a major consumer of copper through electrical systems as well as copper piping in plumbing. Its corrosion resistance as well as its aesthetic appeal have made it popular in roofing, and it is commonly found in the construction of domes, spires and doors. Copper has nutrient qualities and is used as a fungicide in the protection of crops and plants as well as enriching the soil. When copper is mixed with zinc it produces brass, which is also used in a variety of industrial applications.

In 2021 the Company started planning to build a new copper smelter plant with the aim of producing high purity copper cathode that can be used for manufacturing copper cables and wires, one of the major industries in Vietnam with tremendous demand for pure copper cathode.


Tungsten Production

Masan High-Tech Materials’ MTC plant is designed to process the total amount of NPMC tungsten concentrate, along with tungsten concentrates and tungsten bearing materials purchased from third parties, into high grade ammonium paratungstate (APT) – via chemical digestion followed by physical and chemical purification and, finally, crystallization. APT is packaged for sale or undergoes calcination to produce blue tungsten oxides (BTO) and yellow tungsten oxide (YTO) for sale.

In addition, HCS’s production processes include the recycling of tungsten bearing soft and hard scraps as well as the reduction of tungsten oxides to tungsten metal, and the carburization to (cast) tungsten carbides.

Crystallisation & Drying

Calcination

Crystallisation & Drying Solvent Extraction

Milling, Leaching, Filtration & Purification

TungstenConcentrate

Sodium Tungstate Solution (STS)

Sodium Tungstate (ST)

Ammonium Paratungstate Solution (APT)

Blue Tungsten Oxide (BTO)Yellow Tungsten Oxide (YTO)

Ammonium Paratungstate

(APT)

MTC processRoasting / Grinding / Leaching:Milled ore concentrates and roasted soft scrap are leached at high pressure to form a sodium tungstate solution.

Salt Melting / Dissolution:Hard scrap is dissolved in a salt melt under supply of air. Molten sodium tungstate is casted into crucibles and cooled down before being crushed and dissolved in water under formation of a sodium tungstate solution.

Purification:A continuous technical process to remove the remaining impurities.

Solvent Extraction:Using organic compounds and sedimentation vessels, sodium tungstate solution is transformed into ammonium tungstate solution in a continuous, closed loop process.

Crystallization:Ammonia and water are evaporated from the ammonium tungstate solution. Crystalline ammonium paratungstate (APT) is formed from the solution.

Calcination:Tungsten oxides are produced by calcination of APT.

Reduction:Reduction of tungsten oxides to tungsten metal is carried out in pusher and rotary furnaces. Hydrogen acts as a reducing agent.

Carburization: Tungsten metal powder is converted into tungsten carbide powder through a reaction with pure carbon powder in a high temperature furnace.

HCS process

Crystallisation & Drying

Calcination

Reduction

Carburization

Solvent Extraction

Roasting Melt Digestion, Crushing, Milling, Leaching & Purification

Soft TungstenScrap

Hard TungstenScrap

Sodium Tungstate Solution (STS)

Ammonium Paratungstate Solution (APT)

Blue Tungsten Oxide (BTO)Yellow Tungsten Oxide (YTO)Tungsten Metal (W)

Ammonium Paratungstate

(APT)

Tungsten Carbide (WC)Cast Tungsten Carbide (CTC)


Tungsten Application

Tungsten is a strategically important rare metal that is increasingly defined as ‘critical’, both by those in industry and in government. Its unique properties, such as its hardness, its heat resistance and density make it indispensable in many key industries and high-tech applications.

Today’s industrial tools and wear parts have to withstand extreme loads while offering du-rability and long tool life. Exceptionally hard and resistant tungsten carbide is the material of choice for the production of cutting edge cemented carbides used in tools.

Tungsten finds myriad applications in the extreme environments encountered in O&G. It is used in high-performance drill heads, valves, wear parts, and functional coatings, and in shaped charges that perforate the rock around the well to allow oil and gas to flow out.

Precision components made of tungsten metal are used in modern X-ray diagnostics and therapy. For example, to shield and focus hard X-rays or gamma radiation.

Mechanical engineering and toolmaking

Oil and gas industry

Medical technology

Common tungsten uses include, for example:

In the chemical industry, tungsten is used for many applications, especially in the field of catalysts, such as oxidation catalysts.

A high thermal load capacity of tungsten-copper materials in combination with very good thermal and electrical conductivities predestine these materials for applications in elec-trical high-performance switching contacts, as heat sinks in the electrical industry or for use as erosion electrodes.

In aviation, tungsten or tungsten alloys are used because of their high density and strength in balance weights, vibration protection parts for loading flaps or for balancing rotor blades.

Chemical industry

Electrical industry

Aerospace


Tungsten for a Cleaner Environment

Given the versatility of tungsten, it may be expected that tungsten-based materials and components will play their part in meeting todays and tomorrow’s challenges, such as the need for a more efficient use of resources and the reduction of emissions.

While there is certainly great opportunity for tungsten in future applications, the material has been contributing to a cleaner environment for many years already.

Lead substitution

In the strive for a cleaner environment, lead has been identified as one of the metals that needs urgent replacement. According to the US Government’s Top 100 Hazardous Substances Priority list, lead is ranked second. Furthermore, the US Environmental Protection Agency has listed lead as a toxic chemical and have set threshold limits for its concentrations in the air, soil, water and vegetation.

Due to the molecular density similarities between lead and tungsten, tungsten has been proposed as a possible substitution of lead. However, a higher cost and a greater level of machining difficulty of tungsten have often been cited as big obstacles to its introduction, despite its greater level of recycling compared to lead.

An alternative lies with tungsten polymer composites. It is a composition of various resins and tungsten powders, which are mixed to create thermoplastic tungsten, with the final material density matching that of lead. Such a material is easily malleable, has no toxic constituents and it is resistant to corrosion by weather elements. In addition to its easily moldable shapes, thermoplastic tungsten exhibits no harmful effects while handling/ processing and can be recycled without any without detrimental effects to the environment.

Polymers have also been proposed to replace depleted uranium in certain applications. The mains reasons for this lay in the similarities in the similar densities of depleted uranium and tungsten composites, however, tungsten composites bear no health risks.

Catalysis

Various tungsten chemicals are used in DeNOx catalysts that remove nitrogen oxides from stack gases of combustion power plants, chemical plants, cement plants or diesel engines by selective catalytic reduction with ammonia or urea.

Tungsten oxides also can be found in catalysts used in oil refining processes, including hydrocracking, hydrodesulphurization, hydrodenitrogenation and hydrodearomatisation.

These catalysts help to increase the yield of gasoline and other light hydrocarbons in crude oil processing on the one hand. On the other, they make the products, such as transportation fuels, more environmentally friendly by reducing the contents of aromatic hydrocarbons, sulphur and nitrogen compounds. With fuel specifications becoming more stringent around the world to protect the environment, their use has gained in importance and is expected to do so in coming years.


Fluorspar Application

Fluorspar is the commercial name for the mineral fluorite, CaF2. In its pure form it consists of 51.1% Calcium (Ca) and 48.9% Fluorine (F). In nature however, small amounts of silicon, aluminum and magnesium are usually present due to impurities. Fluorspar is found in a wide range of geological environments; however, it most commonly occurs as vein fillings in rocks that have been subjected to hydrothermal activity. These veins often contain metallic ores which can include sulfides of tin, silver, zinc, copper and other metals.

Commercial fluorspar is graded in accordance to its quality. The grades depend on the content of fluorspar and the associated amounts of impurities (calcite, quartz, Sulphur, arsenic and lead). The grades are:

x Acid grade - contains a minimum of 97% of fluorspar, with the remaining 3% being various impurities

x Ceramic grade – contains 85% - 96% fluorspar, with the remaining 4% - 15% being various impurities

x Metallurgical grade – contains between 60% and 84% of fluorspar, with the remaining 16% to 40% being various impurities

The grade of fluorspar determines its end-use. Almost two thirds of all fluorspar production is of acid grade and is predominantly used in the production of hydrofluoric acid (HF), while approximately one third of fluorspar is of metallurgical grade and primarily used as a flux in steelmaking and in the production of aluminum. A small amount of fluorspar is of ceramic grade, where it is used in the manufacture of specialty glass, ceramics and enamelware.

HF is a highly corrosive acid, capable of dissolving glass and many other materials, primarily oxides. Due to its highly corrosive characteristic, it is used in many industries, such as chemical, mining, refining, glass finishing, silicon chip manufacturing and cleaning. Approximately 60% of global HF production is used in various fluorochemical applications, such as refrigerants, non-stick coatings, medical propellants and an aesthetics, whereas smaller amounts of HF are used in petroleum alkylation, and as a pickling agent for metal etching in the electronics industry. Furthermore, HF is also used for cleaning of silicon wafers, glass etching and in the production of polished and frosted glass.

Fluorspar studied under the microscopes Fluorspar applied in glass finishing

Copper Application

Due to the nature of being a soft, malleable and ductile metal with very high thermal and electrical conductivity, copper is used to many different industries, details could be found in the table below:

Property Industry/Type of Application

Aesthetics Architecture, sculpture, jewelry, clocks, cutlery.

Bactericide Door hardware, marine internal combustion engines, crop treatments.

Biofouling resistance General, hydraulic and marine engineering, metalworking, aerospace, power generation, shipbuilding, off-shore oil and gas platforms.

Corrosion resistancePlumbing tubes and fittings, roofing, general and marine engineering, shipbuilding; chemical engineering, industrial processes including pickling, etching and distilling; domestic plumbing, architecture, desalination, textiles, papermaking.

Ease of fabrication All of the above plus printing.

Electrical conductivity Electrical power generation, transmission and distribution, communications, resistance welding, electronics.

Environmental friendliness Essential for health of humans, animals, and crops.

Fungicide Agriculture, preservation of food and wood.

Low temperature properties Cryogenics, liquid gas handling, superconductors.

Mechanical strength/ductility General engineering, marine engineering, defense, aerospace.

Non-magnetic Instrumentation, geological survey equipment, minesweepers, offshore drilling.

Non-sparking Mining and other safety tools, oxygen distribution.

Elasticity Electrical springs and contacts, safety pins, instrument bellows, electronic packaging.

Thermal conductivity Heat exchangers and air-conditioning/refrigeration equipment, automotive radiators, internal combustion engines, mining.


MARKET

Nui Phao is the first mine in Vietnam to operate in accordance with international standards. That in itself is no small feat, however MHT has no intention of stopping there. We aim to position ourselves in a leadership position and to provide tungsten, bismuth, flourite and copper to the rest of the world.

The mining industry is cyclical and one of its biggest challenges is supply may at some points meet the current demand, however, a more likely scenario is that will inevitably fall into a deficit. We are aware of this, however, given that Vietnam accounts for approximately 30% of the world’s supply of tungsten (excluding China) and MHT has successfully acquired H.C. Starck with 100 years of refractory metals expertise and metallurgical excellence, we are confident that MHT will continue to play a key future role in this market.

The quality of our products is recognized globally, and while we are a preferred supplier to many international consumers of scale, we were also able to find new markets with the improved international coverage. MHT’s global brand recognition, is underpinned by high quality, reliable products, and agility to adapt to adversity.

2021 was a year that all economies over the world had been hit by numerous waves of Covid-19 that took a large blow into all industries, business sectors. Here is how it has affected the commodity of our products:

A Global Approach

BISMUTH

Bismuth ingot 99.99% also experienced a dramatic rate of increase in price from $2.85/lb to $3.75/lb during the year. Even though Bismuth is not the most strategic product of MHT but an increase in trading value of the material still provides a strong boost to our business.

The mining industry has been hit by lack of energy during the year, resulting from reduced production of most materials from China. This has also created a shortage which led to the price increase of most materials. However, with China reduced production, it is also a good opportunity for other non-Chinese mining firms, including but not limited to Masan High-Tech Materials, to shorten the production quantity gap with increased material prices.

TUNGSTEN

MB APT price peaked during year end period at $320/mtu from $230/mtu at beginning of the year, which is a bright signal for the business. With MHT being responsible for over one third of global tungsten materials, 2022 is expected to be a good year for Tungsten business.

COPPER

Copper also had a dramatic gain of value during the year as Copper LME raised from $7,918/MT on January 4, 2021 to $9,691/MT when the year closed. With the Copper smelter being developed, MHT expects to capture a share of the copper cathode commodity domestically as well as internationally.

FLUORSPAR

Fluorspar was the product with the most stable value over the year when Chinese Acid-spar price fluctuated between $400-$450/MT with high demand from China.

Market Scale

MHT is a leading manufacturer of midstream tungsten products such as high-tech tungsten metal powders and carbides, with production hubs in Vietnam, China, Germany and Canada, serving customers across the globe.

A highly qualified and professional team of experts in R&D, application engineering, coupled with modern automated manufacturing processes ensure its customers benefit from the highest and consistent quality products.

MHT has the intellectual capital to apply innovative product manufacturing such as ultrafine size tungsten compounds.

In addition, MHT is now operating a comprehensive, environmentally sound tungsten scrap recycling platform backed by proprietary intellectual property. Its European

scrap recycling platform, combined with MHT’s low cost, stable primary supply of ammonium paratungstate (APT), provides MHT a global competitive edge in the tungsten market.

This will enable MHT to generate strong and consistent cash flows across price cycles and expand the addressable market by 3.5 times from US$1.3 billion to US$4.6 billion.

MHT has become a leading midstream tungsten products supplier across critical industries such as mechanical engineering and tool making, mining, automotive and energy, aviation and the chemical industry. The move into midstream tungsten products is also value enhancing as these products command on average a 30-50 percent premium to APT products.

This has created a global high-tech industrial company in Vietnam of scale, but more importantly, enhance Vietnam’s competitive edge in global tungsten market by owning a cutting-edge R&D and technology platform and provide Vietnamese workforce an opportunity to develop engineering skills in the high-tech manufacturing space, as part of the globalization of MHT’s business.

We embody the “Vietnam Can Do” spirit, and we are strongly positioned not only to significantly increase shareholder value, but more importantly to enhance social economic value as a global representative of Vietnam.

EMEA33%

48%

Tungsten

Fluorspar

NAFTA24%

22% Tungsten

Fluorspar

EMEA

APAC

NAFTA

APAC43%

30%

100%

Tungsten

Fluorspar

Bismuth


SHAREHOLDERS INFORMATION

The shareholder structure of the Company as of December 31, 2021 is as follows.

Shareholder structure

List of shareholders holding at least 5% of the charter capital of the Company The list of shareholders holding at least 5% of the charter capital of the Company as of December 31, 2021 is as follows.

Source: List of shareholders of the Company provided by VSD

Sources: List of shareholders of the Company provided by VSD.

Shareholder structure31/12/2021

Number ofShareholders

Numberof Shares held

Value (by par value) (VND)

Shareholding percentage

1 Domestic shareholders 5,380 987,958,353 9,879,583,530,000 89.88%

Institutional Shareholders 9 951,114,419 9,511,144,190,000 86.53%

Individuals 5,371 36,843,934 368,439,340,000 3.35%

2 Foreign Shareholders 55 111,197,067 1,111,970,670,000 10.12%

Institutional Shareholders 1 109,915,542 1,099,155,420,000 10.00

Individuals 54 1,281,525 12,815,250,000 0,12%

Total 5,435 1,099,155,420 10,991,554,200,000 100%

Number of Shares held Value (by par value) (VND) Shareholding percentage

1 Domestic shareholders

Masan Horizon Company Limited 949,597,153 94,959,715,300,000 86.39%

2 Foreign Shareholders

Mitsubishi Materials Corporation 109,915,542 1,099,155,420,000 10,00%

Major Shareholders - InvestorsOwnership structure of Masan High-Tech Materials as of December 31, 2021:

Masan Group Corporation

Masan Horizon Company Limited

Mitsubishi Materials Corporation Masan High-Tech Materials Corporation

100%

86.39%10%


Institutional ShareholdersDomestic shareholder

MITSUBISHI MATERIALS CORPORATION (MMC)

Mitsubishi Materials Corporation holds 109,915,542 ordinary shares (equivalent to 10.00% of the total shares in circulation). Mitsubishi Materials Corporation is an “integrated materials manufacturer” meeting customers’ needs by providing such basic materials as copper and cement, mechanical parts, electronic materials and components used in automobiles, home appliances as well as the tools used to make them. Besides, MMC is also involved in recycling and energy business. Founded in 1871, it is one of the core companies of Mitsubishi Group in Japan. The company is listed on the Tokyo Stock Exchange and the Osaka Securities Exchange, and is a constituent of the Nikkei 225 stock market index.

MASAN GROUP CORPORATION (the controlling shareholder through its wholly owned subsidiary, via Ma-san Horizon)

Masan Group Corporation (“Masan” or the “Company”) believes in doing well by doing good. The Company’s mission is to provide better products and services to the 90 million people of Vietnam, so that they can pay less for their daily basic needs. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.

Masan Group’s subsidiaries and affiliates are industry leaders in branded food and beverages, branded meat, value-added chemical processing, and financial services, altogether representing segments of Vietnam’s economy that are experiencing the most transformational growth. Those include Masan Consumer Holdings - one of Vietnam’s largest local diversified FMCG companies, manufacturing and distributing a range of food and beverage products, including soya sauce, fish sauce, seasoning,

chili sauce, instant noodles, instant coffee, instant cereals, bottled beverages, processed meat, and beer. Recently, Masan Consumer is also present in the home and personal care space; WinCommerce (formerly Vincommerce) – the largest modern retail platform in Vietnam. WinCommerce, via WinEco (formerly VinEco), owns 14 high-tech farms WinEco which provide products of international quality standards; The CrownX (consumer retail platform that currently consolidates Masan’s interests in Masan Consumer Holding and Wincommerce); Masan MEATLife - one of the largest fully integrated (“Feed-Farm-Food” business model) branded meat platform, focused on driving productivity in Vietnam’s animal protein industry and ultimately directly serving consumers with traceable, quality and affordable meat products; Techcombank - one of the largest joint stock commercial banks in Vietnam in terms of total operating income, assets, loans, deposits, customers and distribution network. It has built industry-leading franchises in retail deposits, SME and retail lending through its consumer-centric ecosystem approach; and Masan High-Tech Materials - one of Vietnam’s largest integrated industrial minerals and chemical producers.

Foreign Shareholder


Group Structure 269

GROUPSTRUCTURE

MHT Structure

Organisation Chart

Management Structure

270

282

284

Masan High-Tech Materials Group Structure270 271

99,99999989%

86,39%

100%

80%

99.9999%

100%

100%

100% 100%

100%

100%

100%

30%

60%

100%

100%

100%

100%

100%

20%

0.0001%

MHT STRUCTURE

Holding Company Masan High-Tech Materials Corporation (MHT)

Name of the CompanyMasan High-Tech Materials Corporation

AddressSuite 802, 8th Floor, Central Plaza, 17 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Telephone +84 28 6256 3862

Fax +84 28 3827 4115

Website www.masanhightechmaterials.com

Enterprise Registration Certificate

No. 0309966889 issued by the Department of Planning and Investment of Ho Chi Minh City on April 27, 2010, as amended for the 19th timeon February 11, 2022

Charter Capital VND 10,991,554,200,000

Contributed capital in Company VND 10,991,554,200,000

Major business sectors

• Market research and public surveys (details: market research); and

• Management consultancy (details: investment and management consulting services, excluding financial services).

Masan Group Corporation (Vietnam)

Masan Horizon Co., Ltd (“MH”)

Masan High-Tech Materials Corporation

Masan Thai Nguyen Resources Company Limited (“MRTN”)

Nui Phao Mining Company Ltd


H.C. Starck Holding GmbH (Germany)

H.C. Starck GmbH(Germany)

H.C. Starck Tungsten GmbH(Germany)

H.C. Starck Canada Inc. (Canada)

H.C. Starck Tungsten GK (Japan)

H.C. Starck Nonferrous Metals Trading (Shanghai)

Co. Ltd (China)

H.C. Starck Tungsten LLC (USA)

H.C. Starck Jiangwu Tungsten Specialties (Ganzhou) Co. Ltd

(China JV-2)

Jiangwu H.C. Starck Tungsten Products Co., Ltd. (China JV-1)

H.C. Starck Infrastructure GmbH & Co. KG (Germany)

Chemische Fabriken Oker und Braun-schweig Aktiengesellschaft (Germany)

ChemiLytics GmbH & Co. KG(Germany)

ChemiLytics Beteiligungs GmbH (Germany)

Thai Nguyen Trading and Investment Co., Ltd (“TNTI”)

The corporate structure of MHT is set out in the diagram below:


Consolidated Subsidiaries

MASAN THAI NGUYEN RESOURCES COMPANY LIMITED (MRTN)

Name of the Company Masan Thai Nguyen Resources Company Limited

Address Suite 802, 8th Floor, Central Plaza, 17 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Telephone +84 28 6256 3862

Fax +84 28 3827 4115

Enterprise Registration Certificate No. 0309960069 issued by the Department of Planning and Investment of Ho Chi Minh City on May 7, 2010, and amended for the 8th time on December 14, 2020



Capital contribution ratio of the Company 100% of charter capital

THAI NGUYEN TRADING AND INVESTMENT COMPANY LIMITED (TNTI)

Name of the Company Thai Nguyen Trading and Investment Company Limited

Address Suite 802, 8th Floor, Central Plaza, 17 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Telephone +84 28 6256 3862

Fax +84 28 3827 4115

Enterprise Registration Certificate No. 0310352925 issued by the Department of Planning and Investment of Ho Chi Minh City on October 15, 2010, and amended for the 7th time on December 14, 2020





• Management consultancy (details: investment and management consulting services, excluding financial and accounting consulting services);

• Advertising;

• Market research and public surveys (details: market research);

• Extraction of precious and rare minerals (not operating at the head office);

• Extraction of non-ferrous metals (not operating at the head office);

• Trade promotion; and

• Financial support services, not classified (details: investment consulting services, excluding legal, financial and accounting consulting services).


NUI PHAO MINING COMPANY LTD (NPMC)

Name of the Company Nui Phao Mining Company Ltd

Address Hamlet 2, Ha Thuong Commune, Dai Tu District, Thai Nguyen Province, Vietnam

Telephone +84 24 37182490

Fax +84 24 37182491

Enterprise Registration Certificate No. 4600864513 issued by the Department of Planning and Investment of Thai Nguyen province on July 5, 2010, the 13th amendment dated January 11, 2022.





• Extraction of precious metal ores (exploitation, processing of tungsten, fluorspar, bismuth, copper and gold);

• Extraction of other, nonferrous containing ore;

• Architecture and related technical consulting (geological and water resource exploration (mineral exploration);

• Assistance service activities for mining of other, not mentioned above, ores;

• Production of precious metal ores;

• Sale of the metals and metal ores (excluding sale and purchase of gold bars);

• Management consultancy;

• Other special office assistance; and

• Import and export of the products traded by the Company.

MASAN TUNGSTEN LIMITED LIABILITY COMPANY (MTC)

Name of the Company Masan Tungsten Limited Liability Company

Address Hamlet 2, Ha Thuong Commune, Dai Tu District, Thai Nguyen Province, Vietnam

Telephone +84 24 73075588

Fax +84 24 37182491

Enterprise Registration Certificate No. 4601163743 issued by the Department of Planning and Investment of Thai Nguyen province on January 15, 2014, the 10th amendment dated January 5, 2022





Manufacture of non-ferrous metals and rare metals (processing tungsten for export or domestic trade).


Registered Number: HRB 200744

Registered Office: Im Schleeke 78-91, 38642 Goslar, Germany

Date and place of incorporation: April 23, 2007, Goslar, Germany

Charter capital: EUR 25,000

Ownership: Masan Tungsten Limited Liability Company

Directors: Craig Richard Bradshaw, Stephan Broske, Dr. Hady Seyeda (Managing Director)

Accounting reference date: 31 December

Tel: +49 5321 751-0


Registered Office: Im Schleeke 78-91, 38642 Goslar, Germany

Date and place of incorporation: April 20, 2007, Goslar, Germany

Charter capital: EUR 10,000,000

Ownership: H.C. Starck Holding (Germany) GmbH

Directors: Craig Richard Bradshaw, Stephan Broske, Dr. Hady Seyeda (Managing Director)

Accounting reference date: 31 December

Tel: +49 5321 751-0

H.C. STARCK HOLDING (GERMANY) GmbH

H.C. STARCK GmbH

• Holding company, no operating business.


Business sectors

Business sectors


Registered Office: Landsberger Str. 98, 80339 Munich, Germany

Date and place of incorporation: November 26, 2015, Munich, Germany


Ownership: H.C. Starck GmbH

Directors: Dominic Heaton, Stephan Broske, Dr. Hady Seyeda (Managing Director)

Accounting reference date: December 31

Tel: +49 5321 751-0

H.C. STARCK TUNGSTEN GmbH

• Production of tungsten chemicals, tungsten metal, tungsten car-bide and powders.

• Research and development of technologies for raw materials processing (including recycling)

Business sectors

• Landowner in Goslar, lessor of certain buildings on site, owner of the H.C. Starck brand, licensor.

Business sectorsRegistered Number: HRA 104613

Registered Office: Landsberger Str. 98, 80339 Munich, Germany

Date and place of incorporation: November 26, 2015, Munich, Germany


Ownership: General partner: H.C. Starck Tungsten GmbH

Limited partner: H.C. Starck GmbH

Directors: General partner: H.C. Starck Tungsten GmbH


H.C. STARCK INFRASTRUCTURE GmbH & Co. KG GmbH

Registered Number: 360700520012039

Registered Office: Shuixi Nonferrous and Metallurgical Industrial Base, Zhanggong District, Ganzhou, Jiangxi Province, PRC

Date and place of incorporation: November 27, 2012, Ganzhou, PRC

Charter capital: RMB 95,355,000

Ownership: H.C. Starck Tungsten GmbH (30%)

Jiangxi Tungsten Industry Co., Ltd. (70%)

Directors: Dr. Hady Seyeda, Yi Zhang (Board of Directors)


Tel:+86 18870105188

JIANGWU H.C. STARCK TUNGSTEN PRODUCTS CO., LTD.

• Production of ammonium paratungstate and tungsten oxide products.

• Sale of ammonium paratungstate and tungsten oxide products.

• Architecture and related technical consulting.

• Production and trade of chemical products (excluding dangerous goods).

Business sectors



Registered Office: Shuixi Nonferrous and Metallurgical Industrial Base, Zhanggong District, Ganzhou, Jiangxi Province, PRC

Date and place of incorporation: July 31, 2012, Ganzhou, PRC


Ownership: H.C. Starck Tungsten GmbH (60%)

Jiangxi Tungsten Industry Co., Ltd. (40%)

Directors: Dr. Hady Seyeda, Yi Zhang, Nanqiu Wen (Board of Directors)


Tel: +86 797 5162518

H.C. STARCK JIANGWU TUNGSTEN SPECIALITIES (GANZHOU) CO. LTD.

• Production of tungsten metal powder and tungsten carbide powder

• Sale of tungsten metal powder and tungsten carbide powder

• Research and development of tungsten metal powder and tungsten carbide powder

• Import and export of products traded by company, and

• Other value-added services for customers

Business sectors


Registered Office: Room 301, 69 Yonghong Road, Minhang District, Shanghai, PRC

Date and place of incorporation: November 14, 2018, Shanghai, PRC


Ownership: H.C. Starck Tungsten GmbH

Directors: Stephan Broske (Legal Representative)


Tel: +86 21 6025 1106

H.C. STARCK NONFERROUS METALS TRADING (SHANGHAI) CO. LTD.

• Sales, customer service, application supporting, marketing consulting, financial and management consulting

• Other special office assistance, not mentioned above

Business sectors


Registered Office: 933 Vidal Street South, P.O. Box 3098, Sarnia, Ontario, N7T 8H8, Canada

Date and place of incorporation: May 18, 2006, Sarnia, Canada


Directors: Stephan Broske, Ryan Bender


Tel: +1 519-346-4300

H.C. STARCK CANADA INC.

• Manufacturing Chemicals

• Producing Tungsten Metal Powders, Tungsten Carbide Powders and Cast Tungsten Carbide Powder

Business sectors

Registered Number: 0100-03-027237

Registered Office: 2-20, Kaigan 1-chome, Minato-ku, Tokyo Japan

Date and place of incorporation: March 26, 2018, Tokyo, Japan

Charter capital: JPY 650,000


Directors: Stephan Broske, Tadashi Iba (Operating Officers)


Tel: +81-3-6721-8050

H.C. STARCK TUNGSTEN GK

• Import, export, and sales of rare metals and chemical compounds such as tungsten, and cobalt, etc.; and

• Any other business incidental to or relating to the foregoing such as scrap recovery of cemented carbides, heavy metals, etc.

Business sectors



Registered Office: 45 Industrial Place, Newton, MA 02461, USA

Date and place of incorporation: September 19, 2019, Newton, USA


Directors: Hendrik Becker (President)


Tel: +1339-293-0990

H.C. STARCK TUNGSTEN LLC

• Sale of metals and metal ores;

• Import and export of the products by the Company

Business sectors

• Landowner in Goslar, lessor of certain buildings on site.

Business sectorsRegistered Number: HRB 110008

Registered Office: Im Schleeke 78 - 91, 38642 Goslar, Germany

Date and place of incorporation: February 14, 2006, Goslar, Germany


Ownership: H.C. Starck GmbH

Directors: Juliane Saupe (Management board)

Dr. Hady Seyeda (Chairman of Supervisory Board)

Stephan Broske (Member of Supervisory Board)

Raoul Wilhelmus (Member of Supervisory Board)


Tel: +49 5321 751-0

CHEMISCHE FABRIKEN OKER UND BRAUNSCHWEIG AKTIENGESELLSCHAFT

• Laboratory for full range of inorganic elemental analytics and powder characterization serving all relevant industries e.g. metal, chemistry, ceramic and battery.

Business sectorsRegistered Number: HRA 202206


Date and place of incorporation: October 10, 2018, Goslar, Germany


Ownership: General partner: H.C. Starck GmbH (98%)

Limited partner: ChemiLytics Beteiligungs GmbH (2%)

Directors: General partner: H.C. Starck GmbH


Tel: +49 5321 751 51515

CHEMILYTICS GmbH & Co. KG



Date and place of incorporation: December 27, 2018, Goslar, Germany


Ownership: H.C. Starck Holding (Germany) GmbH

Directors: Dr. Sascha Janosch (Managing Director)


Tel: +49 5321 751 51515

CHEMILYTICS BETEILIGUNGS GmbH


Business sectors


ORGANISATION CHART

Craig Richard Bradshaw

CHIEF EXECUTIVE OFFICER

Ashley James McAleese

MANAGER - MAINTENANCE

David Richard Gault

MANAGER - MINING & GEOLOGY

John Nguyen

ACTING MANAGER- HSSE

Nguyen Van Hau

OPERATIONS MANAGER - MTC

Stuart Norman Arnold

MANAGER - PROCCESSING

Matthew John Callanan

MANAGER- TSF & GEOTECHNICAL

Quan Nguyen

GENERAL MANAGER

Vo Tien Dung

MANAGER - ENVIRONMENT

Tran Van Tuan

MANAGER - CORPORATE AFFAIRS

Luong Chi Cong

MANAGER - MEDIA & COMMUNICATIONPham Thi Hong Hanh

DIRECTOR OF EXTERNAL RELATIONS, COMMUNITY,

AND ENVIRONMENT

MANAGER - SALESNguyen Thi Thu Thuy

MANAGER - SALE EXECUTIONDang Thi Thu Phuong

William John Parry-Jones

HEAD OF SALES & MARKETING

Dominic John Heaton

HEAD OF STRATEGIC INITIATIVES

Stuart James Wells

HEAD OF COMMERCIAL & RISK

Aditya Agarwal

CHIEF ACCOUNTANTNguyen Thi Thanh Mai

MANAGER - TREASURYNguyen Thi Hong Phuong

MANAGER - FINANCE, PLANNING & ANALYSIS

Nguyen Huy Tuan

MANAGER - SUPPLY CHAIN MANAGEMENT

Darren Kerr

MANAGER - TAXTran Thi Hai Van

CHIEF FINANCE OFFICER

MANAGER- OPERATIONAL TECHNOLOGY

& INNOVATIONAnton Robert Jakowetz

MANAGER - R&DVu Thanh Trung

Brenden Lee Weekes

HEAD OF OPERATIONAL TECHNOLOGY AND

INNOVATION

MANAGER- PROCUREMENT

Jason Scanlan

Brian Joseph Pook

MANAGER - PROJECTSJimmy Do

MANAGER - ENGINEERING

Aidan Thomas Jones

DIRECTOROF PROJECTS

Jeremy Bernard Hibberd Marc Roos

MANAGER- IT OPERATIONSTran Ngoc Quang

CHIEF INFORMATIONOFFICER

DIRECTORHR GLOBAL

Nguyen Thi Thanh Nga

MANAGER- HUMAN RESOURCES

Pham Nguyen Hai

HEAD OF LEGAL Dr. Hady Seyeda

Dr. Hady Seyeda Stephan Broske Dr. Sascha Janosch

Philipp Lammert Dr. Pascal Thieleke

Isabell Wünsch

Jelena Malcus

Jörg Henze

TUNGSTEN LLCHendrik Becker

GROUP CONTROLLING Nicole Herwig

ACCOUNTING & TAX Adrian Krysewski

FINANCE & TREASURY MANAGER

Angelika Maierhofer(Interim)

IT TUNGSTENOlaf Goertz

GENERAL PROCUREMENT& CONTRACTSSaskia Schmidt

BUSINESS LINE NAFTARyan Bender

BUSINESS LINE APACPeter Zhang

SALES EMEA / NAFTAOliver Kinzel

HR/ LEGALBarbara Hoelter

MATERIAL MANAG- EMENT GLOBAL

Dr. Stefanie Brix

HSEQ MANAGEMENT Dr. Markus Zumdick

PROJECTS/RESIDUESDr. Hady Seyeda

SITE MANAGEMENTJuliane Saupe

TECHNOLOGY & INNOVATION GLOBAL

Dr. Jullane Meese-Marktscheffel

PROCUREMENT RAW MATERIAL GOSLARWilliam Parry Jones

CHIEF EXECUTIVEOFFICER - HCS

CHIEF FINANCIALOFFICER - HCS

MANAGING DIRECTOR CHEMILYTICS

BUSINESS PROCESS-ES & PROJECTS

SERVICE UNIT 1

SERVICE UNIT 2

COMMERCIALMANAGEMENT

EDUCATIONLABORATORY

DEPUTY CEO

Name Position in the Company Executive/ non-executive member Date of appointment

Mr. Danny Le Chairman of the Board of Directors Non-executive member 19/04/2019

Mr. Nguyen Thieu Nam First Vice Chairman of the Board of Directors Non-executive member 18/02/2013

Mr. Craig Richard Bradshaw Member of the Board of Directors Executive member 19/04/2019

Mr. Akira Osada Member of the Board of Directors Non-executive member 12/04/2021

Ms. Nguyen Thu Hien Member of the Board of Directors Independent member 12/04/2021

MR. STUART JAMES WELLS MS. NGUYEN THI THANH MAI

MR. HADY SEYEDA

Chief Executive Officer

Chief Financial Officer Chief Accountant

Deputy Chief Executive OfficerMR. CRAIG RICHARD BRADSHAW

MANAGEMENT STRUCTURE

MHT General Meeting of Shareholders

MHT Board of Directors

The General Meeting of Shareholders is the supreme authoritative body of the Company. The Annual General Meeting (AGM) of Shareholders shall be organized once a year. The annual General Meeting of Shareholders shall be convened within 4 months from the end of the financial year, or as may be extended, but not beyond 6 months as from the end of the fiscal year, to the extent permitted by the business registration authority and at the request of the Board of Directors.

The Board of Directors (BOD) is responsible for the overall management and direction of the Company. The Board of Directors typically meets when required, but at least every quarter, to review and monitor the Company’s financial position and operations.

The current Board of Directors comprises four (5) members. The term of the Board of Directors is five years. The term of each member of the Board of Directors shall not exceed five years, with a possibility of re-election at the end of the term. The Board of Directors may elect, dismiss or remove the Chairman of the Board of Directors.

List of members of the Board of Directors

The current members of the current Board of Directors are as follows:

MHT Management Team

Mr. Craig Richard Bradshaw has over 25 years’ experience in the mining business, spanning mining and processing operations, logistics, and sales and marketing in Australia, Thailand and Lao PDR. Mr. Bradshaw was previously Senior Commercial Manager for Lang Xang Minerals Ltd Sepon Mine. He has also previously served as the Country General Manager for Thailand for Toll, Australia’s largest fully integrated logistics service provider. Prior to this, Mr. Bradshaw worked in management roles for Mount Isa Mines Limited (“MIM”) and Xstrata.

Mr. Stuart James Wells has more than 24 years of financial experience across a range of sectors with 17 years spent in the natural resources industry working across Tungsten, Gold, Nickel, Alumina, Metallurgical Coal and Oil & Gas for both operational and greenfield projects working in Australia, Indonesia, United Kingdom and now Vietnam. Prior to joining MHT he was the Finance Manager for PT Agincourt Resources which owns the Martabe Gold Mine in Sumatra - and prior to that, he had spent 5 years working as the Head of Finance for BHPs MetCoal project (IndoMet Coal) in Indonesia. He is a member of CPA Australia.

Mrs. Nguyen Thi Thanh Mai is a Bachelor of Accounting at Na-tional Economics University and holds an Auditor Certificate is-sued by the Ministry of Finance. She has more than 10 years of experience in auditing at Arthur Andersen Vietnam Limited Company and KPMG Limited. Prior to joining MHT, she was the Chief Accountant in charge of accounting, finance and tax at Ban Phuc Nickel Mines Limited Liability Company for 12 years.

Mr. Hady Seyeda has more than 20 years’ experience in refractory metal industry and technology, specialized in Tungsten, Tantalite and Niobium. Mr. Hady owns 3 patents and is co-author of 12 publications.

He has Doctor's degree in Inorganic chemistry and worked for H.C. Starck since 1998 at key positions such as: Deputy Chairman of Corporate Strategy, Deputy Director of Plant Operation and Management in Goslar, MD China.


Mr. Craig Richard Bradshaw has over 25 years’ experience in the mining business, spanning mining and processing operations, logistics, and sales and marketing in Australia, Thailand and Lao PDR. Mr. Bradshaw was previously Senior Commercial Manager for Lang Xang Minerals Ltd Sepon Mine. He has also previously served as the Country General Manager for Thailand for Toll, Australia’s largest fully integrated logistics service provider. Prior to this, Mr. Bradshaw worked in management roles for Mount Isa Mines Limited (“MIM”) and Xstrata.

MR. CRAIG RICHARD BRADSHAW General Director

Mr. Vo Tien Dung has 21 years’ experience in mining industry, of which 07 years working in the management and operation role of various mining projects in many provinces in Vietnam such as Thai Nguyen, Yen Bai, Ha Giang, etc. Mr. Dung has work experience

MR. VO TIEN DUNGDirector - External Relations,

Environment & Community

in the International Investment Fund for the natural resources projects. Mr. Dung holds a PhD in Geology and Mineral Resources Engineering, Master’s degree in Geology from Hanoi University of Mining and Geology and a Master of Science in Environmental Assessment and Management at University of Salford, Manchester, UK. Prior to joining NPMC, he was General Director of Viet Minerals Mining Processing Joint Stock Company (VMPCo) and previously as Deputy General Director of Bao Lai Investment JSC (BLG). He has developed a good relationship with government agencies at all levels. He can work well with local community, domestic and international mining companies and organizations. He is now Vice Chairman of Vietnam Association of Geological and Mineral Enterprises, and the member of the Executive Board of the Union of Geological Sciences of Vietnam.

Mr. Dominic holds a Bachelor of Science degree from James Cook University, Townsville, Australia and a Master’s degree in Mineral processing technology from La Trobe University, Australia. He also completed a Senior

MR. DOMINIC JOHN HEATONHead of Strategic Initiatives

Management program at Mt Eliza in Melbourne Business School. Mr. Dominic is a member of the Australasian Institute of Mining and Metallurgy and is a member of the Board of Directors of Australian Institute. In a 27-year career in the mining industry, Mr. Dominic has managed projects in remote and mountainous areas of Australia, Papua New Guinea, Indonesia and Lao PDR. Prior to joining Masan High-Tech Materials. He has held a lot of management positions at Aurora Gold/ Oxiana/ Oz Minerals/ MMG, worked as General Director of Sepon Gold Mine in Laos, and held the position of Operations Director in Martabe, Indonesia.

MR. NGUYEN THIEU NAM MR. NGUYEN VAN THANG MR. DANNY LE MR. CRAIG RICHARD BRADSHAWChair man Deputy Chairman Member Member


MR. STUART JAMES WELLSChief Financial Officer

NPMC Management Structure

The rights and obligations of the Members’ Council, the Chairman and the General Director are regulated by the charter of Nui Phao Mining. According to the charter of NPMC, the Members’ Council is the highest decision-making body of NPMC. The Members’ Council is responsible for the management of the businesses and for the appointment of principal senior management of MTC. Chairman of the Members’ Council is elected by the Members’ Council. The term of office of the Chairman is five years and can be re-elected without any limit.

Name Position in the Company Date of appointment

Mr. Nguyen Thieu Nam Chairman of the Members’ Council 19/04/2019

Mr. Nguyen Van Thang Vice Chairman of the Members’ Council 09/11/2010

Mr. Danny Le Member of the Members’ Council 19/04/2019

Mr. Craig Richard Bradshaw Member of the Members’ Council 19/04/2019

List of the members of the Members’ Council of NPMC

NPMC Management Team


Mr. William John Parry-Jones has more 10 years of experience in the minerals and metals industry with a particular focus on the sales and marketing of tungsten products. Prior to joining NPMC, he worked as a commodities trader for Amalgamated Metal Cor-poration, where he developed extensive knowledge of interna-tional commerce and strong global connections in the upstream technology metals industry. He holds a Bachelor’s degree in the field of Materials Engineering, and a Master of Science in the field of Aerospace Composites from Imperial College London, UK.

Mr. Marc graduated with a PhD in Science from Swiss Federal University of Technology (ETH) Zurich, Switzerland before embarking on a 20-year career in Human Resources Management. He comes to us with a wealth of global experience having worked for companies such as Shell, Glencore, and Weir Engineering in a range of locations including Cameroon, France, Russia, Netherlands, Mauritania and Qatar.

MR. WILLIAM JOHN PARRY-JONES MR. MARC ROOS

Head of Sales and Marketing Director of Global Human Resources

Mr. Ashley Mc Aleese is a qualified Minerals Processing Engineer with more than 18 years of operational experience across a range of commodities that include Copper, Gold, Silver, Zinc and Lead on both operating and greenfield projects working in Australia, Indonesia, Papua New Guinea and now Vietnam. Prior to joining NPMC, he was the Operations Manager for PT Batutua Tembaga Raya which owns the Wetar Copper Project on Wetar island, Indonesia and prior to that was Operations Manager for PT Natarang Mining in Indonesia. He is a member of Australasian Institute of Mining & Metallurgy.

MR. ASHLEY MC ALEESEGeneral Manager

Mr. Brenden Lee Weeks, a qualified Chemical Engineer, has more than 21 years of extensive experience in the design, commissioning and operation of processing facilities in the natural resources industry throughout the world including Australia, Laos, Spain, New Caledonia and Vietnam. He has the ability to lead multi-disciplinary teams to develop innovative solutions and optimize metal and complex minerals processing facilities working across Tungsten, Fluorite, Bismuth, Copper, Nickel and Gold. Prior to joining NPMC, he was the Process Manager for MMG Limited at their Sepon Copper and Gold Smelter in Laos.

Mr. Jeremy Hibberd is a Senior Information Technology Leader with wide-ranging experience leading strategic and transformational IT programs and having strong technical and people leadership skills developed over 25 years’ managing IT services across a number of sectors globally. Prior to joining MHT, he was the Senior IT Operations Manager for Queensland Rail, and has extensive experience in the Mining sector as the Global IT Operations Manager for Zinifex, OZ Minerals and MMG.

Mr. Brian has nearly 20 years of leadership experience in the capital portfolio and project management disciplines. He comes to us with a wealth of professional experience in international project management including successful brownfield and greenfield project delivery in underground & open cut mining, smelting, chemicals, mineral processing and manufacturing operations across Australia, Asia, South America and Europe. He has worked for global organizations in senior management roles including MMG, Orica and Iluka Resources.

MR. BRENDEN LEE WEEKS

MR. JEREMY HIBBERD MR. BRIAN POOK

Head of Operational Technology and Innovation

Chief Information Officer Director of MHT Projects


MR. NGUYEN THIEU NAMMR. NGUYEN VAN THANG MR. CRAIG RICHARD BRADSHAWChairman MemberMembef

Mr. Craig Richard Bradshaw (General Director) has over 25 years’ experience in the mining business, spanning mining and processing operations, logistics, and sales and marketing in Australia, Thailand and Lao PDR. Mr. Bradshaw was previously Senior Commercial Manager for Lang Xang Minerals Ltd Sepon Mine. He has also previously served as the Country General Manager for Thailand for Toll, Australia’s largest fully integrated logistics service provider. Prior to this, Mr. Bradshaw worked in management roles for Mount Isa Mines Limited (“MIM”) and Xstrata.

MR. CRAIG RICHARD BRADSHAW General Director


Stuart has over 22 years’ experience in Mineral Processing and Metallurgy. Before working as an Operation Manager of MTC plant, he had been in the role of Superintendent - Metallurgy at Nui Phao Mining Company Limited.

MR. STUART JAMES WELLS

MR. STUART ARNOLD

Chief Financial Officer

MTC Operations Manager

MTC Management Structure

According to the Charter of MTC, the organizational structure of MTC consists of the Members’ Council and the General Director. The Members’ Council is the supreme decision-making body of MTC and consists of a maximum of four (04) representatives appointed by NPMC and TNTI, of which up to three (03) representatives are to be appointed by NPMC and one (01) representative is to be appointed by TNTI.

The Members’ Council is responsible for the management of the businesses and the appointment of principal senior management of MTC. The Members’ Council has one Chairman who is nominated by NPMC and elected by the Members’ Council. The term of office of the Chairman is five years and can be re-elected without any limit.

MTC Management Team


Audit Committee

Sustainability Committee

Risk & Audit Committee

TT Members ofthe Audit Committee Position

Day becoming/no longer member of the Audit Committee

Number of attendances Percentage Reasons for

absence

1 Ms. Nguyen Thu Hien Chairwoman 12/04/2021 2/2 100% -

2 Mr. Nguyen Thieu Nam Member 12/04/2021 2/2 100% -

No. Members ofSustainability Committee Position

Day becoming/no longer member of theSustainability Committee


absence

1 Mr. Ashley James McAleese* Chairman 11/01/2021 4/4 100% -

2 Mr. Nguyen Van Thang Member 23/6/2017 4/4 100% -

3 Mr. Craig Richard Bradshaw Member 23/6/2017 4/4 100% -

4 Mr. Tran Phuong Bac Member 23/6/2017 4/4 100% -

5 Mr. Vo Tien Dung Member 14/01/2020 4/4 100% -

No. Members ofRisk & Audit Committee Position

Day becoming/no longer member of the Risk & Audit committee


absence

1 Mr. Craig Richard Bradshaw Chairman 21/9/2017 1/1 100% -

2 Mr. Dominic John Heaton Member 21/9/2017 1/1 100% -

3 Mr. Morgan Carroll* Member Start: 21/9/2017End: 16/9/2020 0/1 0% -

4 Mr. Tran Phuong Bac Member 21/9/2017 1/1 100% -

5 Mr. Pham Nguyen Hai Member 21/9/2017 1/1 100% -

* The resignation of Mr. Dominic John Heaton from the Chairman of the Sustainability Committee from January 11, 2021 and being replaced by Mr. Ashley James McAleese.

* Mr. Morgan Carroll ceased to be a member of the Risk Committee from 16/9/2020.


Mr. Stephan Broske has over 25 years’ financial experience in a wide range of sectors such as banking, logistics and chemicals. With 14 years working at H.C. Starck, he started working as the Head of Financial department then became the Chief Financial Officer of the Company until now.

Prior to that, he worked as a Financial Risk Manager for Cognis Special Chemicals, Henkel sculpture and fabrication company, and the Deutsche Post DHL Group. He started his career at HypoVereinsbank / UniCredit as a Sales Manager for foreign exchange & currency market.

Mr. Broske holds a Certified Financial Investment Analyst® (CFA) recognized globally.

Mr. Hady Seyeda has more than 20 years’ experience in refractory metal industry and technology, specialized in Tungsten, Tantalite and Niobium. Mr. Hady owns 3 patents and is co-author of 12 publications.

He has Doctor's degree in Inorganic

MR STEPHAN BROSKE

MR HADY SEYEDA

H.C. Starck Tungsten Powders CFO

H.C. Starck Tungsten Powders CEO

Mr. Peter Zhang has more than 23 years’ experience of powder business in Asia. As senior management group member for Höganäs Asia Pacific, he led China to become the most successful subsidiary for Höganäs Group. Previously, he worked as President for Wagner Industry Solutions China. Mr. Zhang is skilled at creating and sharing value on the whole value chain as well as building strong local team to drive sustainable growth and profitability for foreign companies in China and the Asia region.

MR PETER ZHANG

General Manager H.C. Starck APAC

Mr. Ryan Bender has more than 20 years’ management experience in manufacturing industry. He has been with H.C. Starck Canada for 10 years, holding several progressive positions before taking over management of the Sarnia Site in January 2019. When not making Tungsten, Ryan works part time as a firefighter and is a certified Emergency Medical Responder.

MR RYAN BENDER

Plant Manager/ General Manager - H.C Starck in Canada

Ms. Juliane Meese-Marktscheffel has over 25 years of experience in global innovation and technology management in the chemical industry. As graduated chemist and certified business chemist her main innovation focus areas are on R&D strategy and development of superior product portfolios. Her international record refers to the set-up of diverse joint ventures including

MS JULIA MEESE-MARKTSCHEFFELDirector Technology & Innovation Global

commissioning and ramp-up of new powder productions at sites in Canada and Japan in the battery material business and for strategic Tungsten powders/chemicals in China and Vietnam. She started her professional career within the rare earth element chemistry followed by more than 10 years in the cathode materials development of secondary batteries zooming in on Nickel/Cobalt based Lithium ion/polymer batteries for electromobility. Scientific emphasis meanwhile is across the value chains of the refractory metals, in particular Tungsten. She is a member of the Scholarship Foundation of the German Nation as well as of the Alexander-von-Humboldt Foundation of Germany.

Ms. Juliane Saupe has over 13 years’ experience in the chemical industry, process development and optimization, Lean management, sustainability and health management. After graduating from the Technical University of Berlin as chemical engineer, she started working as a R&D project manager at H.C. Starck in 2007. Later, she switched to plant management and has now been the site manager of our location in Goslar since 2019.

Site Manager H.C. Starck Tungsten Goslar

MS JULIANE SAUPE

chemistry and worked for HCS since 1998 at key positions such as: Deputy Chairman of Corporate Strategy, Deputy Director of Plant Operation and Management in Goslar, MD China.

In 2016, he was appointed to the position of Deputy General Manager, responsible for monitoring production, research and development, managing supply chain and health, safety and emergency response of the Company with branches worldwide. Since 2018 until now, he has held a position of General Manager of H.C. Starck.


HCS Management Team

DEVELOPMENTSTRATEGIES

Development Strategies 297

Sustainability at MHT

Development Objectives

Social Development Objectives

‘’Go Global” Execution Strategy

300

300

300

301

298 Masan High-Tech Materials Development Strategies 299

H.C. Starck Tungsten Powders Factory in Goslar, Germany H.C. Starck Tungsten Powders Factory in Sarnia, Canada

H.C. Starck Tungsten Powders Factory in GanZhou, China Tsukuba Plant of Mitsubishi Materials Corporation in Japan, a Strategy Partner of Masan High-Tech Materials

MHT’s vision is to become the global leader and partner of choice, as the high-tech materials industry continues to shape the future of our world. Through the application of innovative, quality assured and sustainable products and processes we will create unparalleled solutions in advanced and strategic materials and superior outcomes for all our stakeholders.

During 2021 we continued performance optimization activities that started under the integration in 2020. We both strengthened and grew the customer base of our H.C. Starck (HCS) global tungsten business. Several customers took strategic long-term and larger positions across a range of different end-market categories reflecting their need for a strategic partner not previously available in the market. In ChemiLytics a new business strategy was approved to expand into providing analysis to the fast-growing battery manufacturing and recycling sectors, which also has potential synergies with other MHT R&D activities underway.

At MHT’s core is a determination to continue building a sustainable business as part of our normal business activities and we see this as key to our business longevity while also being value accretive for our shareholders.

MHT’s sustainability strategy includes consideration of global issues such as pandemic management, climate change, supporting and respecting human rights, advocating for social change by supporting the rights of peoples within conflict zones and responsible sourcing initiatives so that end customers have a clear choice available to them on the products and brands they accept.

Annually we choose to keep our position on Sustainability a matter of public record, and one which we do welcome and enjoy dialogue on. Our delivery of the commitments made enables our people and shareholders to understand our common approach, our values, how we measure success and the basis for our decision-making.

MHT policy is set at a global level, recognizing the requirement to act at a local level. Sustainability is about identifying and managing our risks, reducing our adverse environmental, social, economic and cultural impacts, while supporting and sustaining the industries, communities, and environments in which we work and live.

Openly our safety performance across our sites was mixed. Pandemic management was exceptional across all sites and a credit to all employees. However globally we also saw an increase in serious incidents compared to 2021, which were each investigated and actions taken to prevent future reoccurrence. We continue to improve the delivery on our commitment to promote the circular economy we recycled a similar amount of tungsten to the annual tungsten production of the Nui Phao mine. In addition, at MHT Vietnam we continued to increase our use of recycled tungsten units in all finished goods to meet growing sales volumes.

Our plans for 2021 remained focused on four key areas:

Ensure our products remain the leading products in the eyes of our customers; ensure strong cost effectiveness in the market; Continuous work to enhance our people, processes and systems, to understand and support the changing needs of industrial customers;

Promote the circular economy through the adoption of “Reduce, Reuse & Recycle” philosophy;

Safeguard the ecosystems of our people, our environment, our stakeholders; and

Ensure superior financial results on a long-term sustainable basis.

Our Development Objectives

Sustainability at MHT Social Development Objectives

Masan High-Tech Materials knows that a strong local understanding of the local sensitivities of community and customer concerns are critical for successful and sustainable business. During 2021 the Executive was expanded reflecting the global nature of our operations, and several senior members of the executive; CEO, CFO, Global HR Director, Head of Operational Technology & Innovation, and Director of Projects all independently spent several weeks in Goslar working with functional team members to strengthen organizational alignment and communicate and engage on business requirements. A smaller group then went on to visit Sarnia. Due to pandemic related travel restrictions a visit to the Ganzhou operation was not possible. These visits will be made in 2022 as restrictions are lifted to ensure enhanced and personalized communications across the organization.

Throughout 2021 Masan High-Tech Materials has clearly demonstrated its ability to develop and stabilize assets to build sustainable long-term shareholder value. Of note the returns of the H. C. Starck Tungsten business detailed within the financial and sustainability parts of this report showcase what you can achieve with retaining and empowering the incumbent teams, in a challenging environment, where you are all working together towards a clear vision.

The HCS acquisition has continued to demonstrate decreased tungsten revenue volatility via the expanded product range and through the increased processing of scraps sourced globally neither of which are index priced. The operations in Vietnam also continued their strong performance in producing both primary and secondary materials into their markets along with improved unit costs driven off completion of multiple processing debottlenecking projects. These projects focused in particular on increased front end throughput capacity that translated to lower grades whilst still increasing the total finished goods produced.

Local knowledge with global considerations and understanding to facilitate project execution and asset optimization.

Use our ability to access and optimize capital and cash flows to acquire and develop quality assets.

Masan High-Tech Materials remains hedged against commodity price fluctuations through the diversification of its portfolio of metals, minerals and revenue currencies.

On review of the different metrics contained throughout this report we believe we can say that we delivered well on all items.

MHT products maintained market leadership across our indicators: customer complaints, customer ratings, and our ability to maintain pricing advantage against like products demonstrated our continued value proposition to our customers.

'Go Global' Execution Strategy


CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This communication contains information that may constitute “forward-looking statements”. Generally, the words “believe”, “expect”, “intend”, “aim”, “estimate”, “anticipate”, “project”, “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future – including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results – are forward-looking statements.

Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. Masan High-Tech Materials Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause audited results to differ materially from our company’s historical experience and our present expectations or projections. These risks include commodity pricing risks and the prices we obtain for our Tungsten, Copper, Fluorspar and Bismuth are determined by, or linked to, prices in world markets, which have historically been subject to substantial volatility. Fluctuations in commodity prices can occur due to price shifts reflecting underlying global economic and geopolitical factors, industry demand, increased supply due to the development of new productive resources, technological change, product substitution and national tariffs. Volatility in global economic growth has the potential to adversely impact future demand and prices for commodities. This has the potential to negatively impact future earnings and cash flows. These risks and uncertainties include, but are not limited to, those described elsewhere in this report and those described from time to time in our future reports filed with the Hanoi Stock Exchange.

This communication is not for distribution in the United States. This communication and the information contained herein is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration pursuant to the U.S. Securities Act of 1933, as amended, or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

ABBREVIATIONS/ DEFINITIONSACCA Association of Chartered Certified Accountants

AFFF Aqueous Film Forming Foam

AGM Annual General Meeting

ANCO Argo Nutrition International Joint Stock Company

APEC Asia-Pacific Economic Cooperation

APT Ammonium Paratungstate

APT Plant Tungsten Chemicals Processing Plant of Masan Tungsten LLC

BGC German BG Case

BImSchG Bundesimmissionsschutzgesetz (Federal Emission Control Act)

BOD The Board of Directors of the Company

BOJ Bank of Japan

BTO Blue Tungsten oxide

C&R Compensation and Resettlement

CEO Chief Executive Officer

CFO Chief Financial Officer

CHESS Community, Health, Environment, Safety and Sustainability committee

Company Masan High-Tech Materials/Masan High-Tech Materials Corporation and its subsidiaries

CSI Corporate Sustainability Index

CSR Corporate social responsibility

DAW Days Away From Work

DAWC Days Away From Work Cases

DAWC 3 Number of Days Away from Work Cases of third party Contractors

DAWCR Days Away From Work Cases Rate

DP2 Discharge Point 2

DP3 Discharge Point 3

EBITDA Earnings before Interest, Taxes, Depreciation and Amortization

EC Electro-chromic

EIA Environmental Impact Assessment

ENV Environment

E-PRTR European Pollutant Release and Transfer Register

ERD Economic Restoration Development

FA Fatal Accidents

FY Financial Year

302 Masan High-Tech Materials Abbreviations / Definitions 303


GDP Gross Domestic Product

H.C. Starck or HCS H.C. Starck Tungsten Powders

HC Headcount

HNX The Hanoi Stock Exchange

HR Human Resources

HRD Human Resources Department

HSD Hill Side Dyke

HSS Health, Safety and Security Department

IC Integrated Circuit

IED Industrial Emissions Directive

IT Information technology

ITIA The International Tungsten Industry Association

ITLC International Trade law & Customs

ITRB Independent Tailings Review Board

Law on Enterprises Law on Enterprises No. 68/2014/QH13 dated November 26, 2014 of the National Assembly of the Socialist Republic of Vietnam

LCD Liquid Crystal Display

LTI Lost-Time-Injury

LTIFR Lost Time Injury Frequency Rate

M&A Mergers and Acquisitions

M&G Mining & Geology

MAINT Maintenance

MAQ German Accident Rate

Masan Group MSN and its subsidiaries

Masan Horizon or MH Masan Horizon Company Limited

Masan Resources or MSR Masan Resources Corporation

MCH Masan Consumer Corporation

MHT Masan High-Tech Materials Corporation

MNSMML Masan Nutri-Science CorporationMasan MEATLife Corporation

MONRE Ministry of Natural Resources and Environment

MRTN Masan Thai Nguyen Resources Company Limited

MSN Masan Group Corporation

MTC Masan Tungsten Limited Liability Company

mtu 1mtu = 10kg

NHTCM Nui Phao - H.C. Starck Tungsten Chemicals Manufacturing

NPAT Net Profit After Tax

NPMC Nui Phao Mining Company Ltd

PCDP Public consultation and information disclosure program

PROC Processing

R&D Research & Development

RMI Responsible Minerals Initiative

RMIP Raw Material & Inventory Planning

S&M Sales and Marketing

SCM Supply chain management

THW Total Hours Worked

TNTI Thai Nguyen Trading and Investment Company Limited

TRC Total Recordable Cases

TRCR Total Recordable Cases Rate

TRIFR Total Recordable Injuries Frequency Rate

TSF Tailings Storage Facility

USD or US$ or $ The official currency of United States of America

USQ German Severity Rate

VAS Vietnamese Accounting Standards

VAT Value-added tax

VBCSD Vietnam Business Council for Sustainable Development

VND The official currency of Vietnam

VNR Vietnam Report Corporation

YTO Yellow Tungsten Oxide

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