2020 Annual Report Important Notice I. The board of directors (the “Board”) and the supervisory committee of the Company (the “Supervisory Committee”) and its directors (the “Directors”), supervisors (the “Supervisors”) and senior management warrant the truthfulness, accuracy and completeness of the information contained in this annual report that there are no false representations, misleading statements contained herein or material omissions, and jointly and severally accept full responsibility. II. All Directors of the Company attended the Board meeting in relation to, among others, the approval of results for the year ended 31 December 2020. III. The consolidated financial statements of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2020 (the “Reporting Period”) prepared in accordance with PRC Accounting Standards for Enterprises (“PRC GAAP”) and International Financial Reporting Standards (“IFRSs”) have been audited by Ernst & Young Hua Ming Certified Public Accountants LLP (domestic auditor) and Ernst & Young (overseas auditor) respectively with standard unqualified audit report issued. IV. The person in charge of the Company, Mr. Zheng Gaoqing, the person in charge of accounting, Mr. Yu Tong, and Manager of Finance Department (accounting chief), Mr. Ai Fuhua, hereby warrant the truthfulness, accuracy and completeness of the financial report as set out in the annual report. V. Proposal of profit distribution plan or transfer of capital reserve to share capital during the Reporting Period after consideration by the Board The Board has recommended distributing to all shareholders a final dividend of RMB0.10 per share (inclusive of tax) for 2020. The Board did not recommend transfer of capital reserve to share capital or issue of bonus shares. VI. Statement for the risks involved in the forward-looking statement This annual report contains forward-looking statements that involve future plans and development strategies which do not constitute a commitment by the Company to its investors. Investors should be aware of the investment risks. VII. There is no misappropriation of funds by the controlling shareholders and their connected parties for non-operation purpose. VIII. There is no external guarantee made in violation of the required decision-making procedures. IX. There is no more than half of the Directors could not guarantee the truthfulness, accuracy and completeness of the annual report disclosed by the Group. X. Notice of principal risks The Company has described the industrial risks in details in the report. Please refer to the content of “Discussion and analysis on the future development of the Company – Potential risks” under the section headed “Management Discussion and Analysis” of this report. XI. Others Unless otherwise specified, financial data involved in this report was extracted from audited consolidated financial statements of the Group prepared in accordance with the PRC GAAP. CONTENTS Definitions 2 Corporate Profile 5 Summary of Accounting Data and Financial Indicators 7 Business Overview of the Company 13 Management Discussion and Analysis 22 Report of the Board 63 Report of the Supervisory Committee 93 Corporate Governance Report 95 Internal Control 110 Corporate Bonds 118 Significant Events 122 Financial Accounting Report 159 Financial Summary 328 Definitions Terms used herein, unless otherwise specified, shall have the same meanings ascribed to them as follow: Definitions to the frequently-used terms: Articles means the Articles of Association of Jiangxi Copper Company Limited Audit Committee means the independent audit committee of the Company Board means the board of Directors cathode copper and refined means prefabricate thick plate with crude copper as anode and copper sheet with fine copper as cathode, and take the mixed solution of sulfuric acid and copper sulfate as electrolyte. After electrification, the copper is dissolved on the anode as copper ions, which then move from the anode to the cathode, pick up electrons and are deposited on the cathode Chengmenshan Copper Mine means one of the five mines under production located in Jiangxi Province owned by the Company, located in Jiujiang County, Jiujiang City, Jiangxi Province, and also refers to Chengmenshan Copper Mine of the Company Company or Jiangxi Copper means Jiangxi Copper Company Limited copper contained in means the amount of copper in copper concentrate copper concentrate copper rod wire means rods and wires made of cathode copper by melting, casting and rolling crude copper means the raw copper materials including blister copper and impure copper CSRC means China Securities Regulatory Commission Dexing Copper Mine means one of the five mines under production located in Jiangxi Province owned by the Company, located in Dexing City, Shangrao City, Jiangxi Province, and also refers to Dexing Copper Mine of the Company Director(s) means the director(s) of the Company 2 Jiangxi Copper Company Limited Definitions Fuye Group means Zhejiang Fuye Group Co., Ltd. (浙江富冶集團有限公司) Group means the Company and its subsidiaries Guixi Smelter means a copper smelter factory owned by the Company, located in Guixi City, Jiangxi province, and also refers to Guixi Smelter of the Company Heding Copper means Zhejiang Jiangtong Fuye Heding Copper Co., Ltd. (浙江江 銅富冶和鼎銅業有限公司) Humon Smelting means Shandong Humon Smelting Co., Ltd. IFRSs means International Financial Reporting Standards JCC means Jiangxi Copper Corporation Limited (formerly known as Jiangxi Copper Corporation) and its subsidiaries, but excluding the Group Listing Rules means the Rules Governing the Listing of Securities on the Stock Exchange LME means London Metal Exchange matte means copper produced by smelting of copper concentrate in a reverberatory furnace, electric furnace or flash furnace, with copper content of approximately 60% Ministry of Finance means The Ministry of Finance of the People’s Republic of China PRC means The People’s Republic of China PRC GAAP means the PRC Accounting Standards for Enterprises refined smelting means production and processing of crude copper to cathode copper Reporting Period means the year ended 31 December 2020 rough smelting means production and processing of copper concentrate to crude copper SSE means Shanghai Stock Exchange 2020 Annual Report 3 Definitions Stock Exchange means The Stock Exchange of Hong Kong Limited sulfur concentrate means the sulfur product made from copper ores through mining, crushing, grinding-flotation, washing and other process as an important material for sulfuric acid production sulfuric acid means one of the important products in the chemical industry, with molecular formula H2SO4, which is a colorless, tasteless oil-like liquid, a strong acid with high boiling point, difficult to volatilize, easily soluble in water and miscible with water in any ratio Supervisor(s) means the supervisor(s) of the Company Supervisory Committee means the supervisory committee of the Company Wushan Copper Mine means one of the five mines under production located in Jiangxi Province owned by the Company, located in Ruichang City, Jiangxi Province, and also refers to Wushan Copper Mine of the Company Yinshan Mining means one of the five mines under production located in Jiangxi Province owned by the Company, located in Dexing City, Shangrao City, Jiangxi Province, and also refers to JCC Yinshan Mining of Company Limited Yongping Copper Mine means one of the five mines under production located in Jiangxi Province owned by the Company, located in Qianshan County, Shangrao City, Jiangxi Province, and also refers to Yongping Copper Mine of the Company In this annual report, the English names of certain PRC entities are translations of their Chinese versions, and are included herein for identification purposes only. In the event of any inconsistency, the Chinese versions shall prevail. 4 Jiangxi Copper Company Limited Corporate Profile I. CORPORATE INFORMATION Name of the Company in Chinese 江西銅業股份有限公司 Chinese abbreviation 江西銅業 Name of the Company in English Jiangxi Copper Company Limited English abbreviation JCCL Legal representative Zheng Gaoqing II. CONTACT PERSONS AND CONTACT METHODS Securities Affairs Secretary to the Board Representative Name (Chairman of the Board takes up Lu Gaoming the responsibilities of Secretary to the Board) Address 7666 Changdong Avenue, High- 7666 Changdong Avenue, tech Development Zone, High-tech Development Zone, Nanchang, Jiangxi Province, Nanchang, Jiangxi Province, the People’s Republic of China the People’s Republic of China Telephone (86)791-82710118 (86)791-82710112 Facsimile (86)791-82710114 (86)791-82710114 E-mail [email protected] [email protected] III. BASIC INFORMATION Registered address of the Company 15 Yejin Avenue, Guixi City, Jiangxi Province, the People’s Republic of China Postal code of the registered 335424 address of the Company Office address of the Company 7666 Changdong Avenue, High-tech Development Zone, Nanchang, Jiangxi Province, the People’s Republic of China Postal code of the office address 330096 of the Company Website of the Company http://www.jxcc.com E-mail [email protected] 2020 Annual Report 5 Corporate Profile IV. INFORMATION DISCLOSURE AND PLACE OF INSPECTION Media selected by the Company Shanghai Securities News for information disclosure Website designated by CSRC for www.sse.com.cn publishing the annual report Place for inspection of annual report 7666 Changdong Avenue, High-tech Development Zone, Nanchang, Jiangxi Province, the People’s Republic of China