ZHEJIANG YONGTAI TECHNOLOGY CO., LTD.

(GDR under the symbol: "YTT")

(a joint stock company established under the laws of the People's Republic of China with limited liability)

Estimated Results For The Year 2023

I. Results estimation for the period

1. Reporting period of the estimated results: 1 January 2023 to 31 December 2023;

2. Estimated results:

√ Loss  □ From loss to profit  ​□ Increase  ​□ Decrease 

II. Communication with certified public accountants

The financial data related to the estimated results have not been preliminarily audited by the certified public accountants. However, the Company has conducted pre-communication with the certified public accountants on major matters related to the estimated results, and there is no disagreement between the Company and the certified public accountants on the estimated results.

III. Reasons for changes in results

The Company's performance in the year 2023 has decreased significantly year on year, mainly due to:

1．Significant decrease in the main business revenue and product gross profit margin. (1) In the lithium battery materials sector, the sales volume of lithium hexafluorophosphate, the main product of the Company, increased by approximately 10% year on year during the reporting period. However, due to a significant decrease in product market prices during the reporting period, sales revenue and gross profit margin decreased substantially. Although the average market price of lithium carbonate, the main raw material, has decreased significantly in current period compared to the same period last year, the gross profit of lithium battery material products incurred a loss during the reporting period given that the inventory of high priced raw materials was relatively high at the beginning of the year while raw materials were purchased in advance in daily operations that involved production cycles, and at the same time the price of lithium carbonate continued to decline and the products were priced based on the latest lithium carbonate prices during the reporting period. (2) In the pharmaceutical sectors  and crop science sectors, the disappointing downstream market demand and fierce competition in domestic and international markets during the reporting period led to a decrease in product sales prices, resulting in a year-on-year decrease in sales revenue and gross profit.

2．Compared to the temporary decrease in sales revenue and gross profit due to external market factors, the Company's daily operating costs and expenses have a certain rigidity in the short term, such as depreciation and amortization expenses, employee compensation, financing costs, etc. Among them, financial expenses increased a lot year on year, mainly due to the year-on-year increase of approximately RMB27.00 million in interest expenses arising from increase in bank financing, and the year-on-year decrease of approximately RMB66.60 million in exchange earnings arising from exchange rate fluctuation between the USD to RMB.

3．Asset impairment loss during the reporting period increased a lot year on year, which was mainly due to the decrease in market prices of products and raw materials, resulting in a year-on-year increase of approximately RMB91.00 million in the provision for inventory depreciation in the reporting period.

Looking forward, the Company will continue to focus on its core business, continuously innovate technologies and products, promote improvement in process technology on an ongoing basis, reduce production costs consistently, increase product market share, further optimize industrial chain layout, fully leverage the advantages of vertical integrated industrial chain, and enhance the Company's profitability and comprehensive competitiveness.

IV. Other relevant information

The estimated results set out herein are results of the preliminary estimation conducted by the finance department of the Company and the actual financial information of the Company is subject to the 2023 annual report to be disclosed by the Company. Investors are advised to exercise caution while making decision and pay attention to investment risks.

The Board of Directors

Zhejiang Yongtai Technology Co., Ltd.

29 January 2024