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公告日期:2024-04-22

Embrace the mission Lead the future

Beijing Shougang Company Limited

Sustainability Report 2023





Beijing Shougang Company LimitedSustainability Report 2023

Esteemed readers,The 2023 Shougang Co. Sustainability Report adheres to the principles of objectivity, standardization,transparency, and comprehensiveness. It systematically discloses Beijing Shougang Co., Ltd.'scommitments, management, measures, and achievements in social responsibility, environmentalprotection, and corporate governance in 2023.

Beijing Shougang Co., Ltd

April 2024

About This Report

ReportingPeriodReportScope

DataSources andReliabilityAssurancePreparationBasis

TextLanguageReportAcquisition

This report covers the period from January 1, 2023 to December 31, 2023 (referredto as the "Reporting Period"), with some of the information retroactive to previousyears and including the ?rst quarter of 2024.This report covers Beijing Shougang Co., Ltd. and affiliated branches andsubsidiaries. Hereinafter "Beijing ShougangCo., Ltd." in the report is also referredto as "Shougang Co.", "the company" or "we" for ease of expression and reading.The main products manufacturers of Shougang Co.: Shougang Qian'an Iron & SteelCo., Ltd. (Qiangang Co.), Shougang Jingtang United Iron & Steel Co., Ltd. (JingtangCo.), Beijing Shougang Cold Rolling Co., Ltd. (Cold-R Co.), and Shougang ZhixinQian'an Electromagnetic Materials Co., Ltd. (Zhixin Co.).Note: The Qianshun Base refers to the integrated production organization withresearch and development system formed by Qiangang Co. (located in Qian-an,Hebei province) and Cold-R Co. (located in Shunyi District, Beijing).The information and data disclosed in this report originate from the company'sdocuments and statistical data, and have been verified by relevant departments.The company guarantees that the contents of this report are free from any falserecords or misleading statements and takes responsibility for the authenticity,accuracy, and completeness of the contents.?Guidelines for Preparation of China Corporate Social Responsibility Report(CASS-ESG5.0) issued by the Chinese Academy of Social Sciences?Guidelines No. 1 for Self-Discipline Supervision to Listed Companies- NormativeOperation of Main Board Listed Companies issued by Shenzhen Stock Exchange?The Sustainability Reporting Standards (GRI Standards) issued by the Global

Sustainability Standards Board? The United Nations 2030 Sustainable Development Goals (SDGs)This report is available in both Chinese and English. If there is any discrepancybetween the two languages, please refer to the Chinese version.The electronic version of this report can be downloaded from the column on theof?cial website of Shougang Co. (http://www.sggf.com.cn/).

2 3

About This Report 1Message From Chairman 4About Us 6Honors in 2023 10Figures for 2023 11

Focus 1 Green Pioneers

——Environmental Protection andLow Carbon Lead SustainableDevelopment

Focus 2 Technology Leader——Persisting in TechnologicalInnovation and Wining MarketRecognition

Focus 3 Safety Escort——Building Solid Safety Damsand Continuously Reducing HiddenDangers

AppendixKey Performance Indicators Form 108Content Index 113Feedback Form 118

Governance:

Strengthening theFoundation of Governance

Environmental Protection:

Playing a DemonstrationEect

Society:

Creating a Better LifeTogether

Value:

Demonstrating Missionand Responsibility

Corporate Governance 21ESG Management 22Integrity Ecology 26Risk Management 29Investor Relations 32

Environmental Management 36Ultimate Energy Efficiency 42Water Rescource Management 46Low-carbon Development 48Green Products 56Biodiversity 59

Employee Protection 62Talent Development 70Health and Safety 72Quality Assurance 77Customer Service 80Supply Chain Management 84

National Strategic Projects Participation 90Research and Development Innovations 92Intelligent Manufacturing 98Industry Collaboration 102Public Welfare Actions 106Urban Integration 107

0102

0304

Contents

The 2023 is the first year to fully implement the spirit ofthe 20th CPC National Congress, and the key year forShougang Co. to implement the "Fourteenth Five-YearPlan". Shougang Co. actively integrates the ESG conceptinto the whole process of corporate strategic decision-making and operation and production, continuouslyoptimizes the management and control system for high-quality and sustainable development, builds a solidfoundation for corporate governance; The company activelyresponds to climate change, consolidates the foundationof green and low-carbon development, and adheres to theinnovation-driven strategy; The company builds a solidfoundation for technology leadership; We further promotethe strengthening of the enterprise with talents, consolidatethe foundation of human resources; We implement adual prevention mechanism to build a solid foundation forintrinsic safety; We adhere to the responsible managementfor the stable industrial chain.Solid foundation for corporate governance.Wecontinuously optimize the management and control system,comprehensively promoting the corporate governancesystem construction and improving governance capabilities,which are the cornerstones of high quality developmentof enterprises. During the reporting period, the companyformed a modern governance system characterizedby scientific standards, effective checks and balances,ensuring the efficiency and compliance for informationdisclosure and the operation of shareholders' generalmeeting, board of directors and supervisory committee.We have established an ESG management structurecomposed of the Director Board, special committeesof the Director Board, and ESG working groups, andimproved its foundation. It has innovatively establishedthe business management model of " three compliantrepositories", established a complete compliancemanagement system, and became the first enterprisein the steel industry to pass the ISO 37301 compliancesystem certi?cation.

Make concerted efforts to deepen the foundationof green and low-carbon.Actively carrying outactions to address climate change and implementinggreen manufacturing and low-carbon routes arethe top priorities for the sustainable development ofenterprises. During the reporting period, the companyactively practiced the ideal of green development,further promoted ultra-low emission control, continuedto maintain its leading edge in the industry, passedthe review of A-level enterprises in environmentalperformance, implementing the national dual-carbonstrategy, officially released the low-carbon action plan,improved the construction and functional developmentof the LCA data collection platform and carbon emissionmanagement platform, and comprehensively applied

the advantages of low-carbon technologies, and stroveto build integrated iron and steel low-carbon productline, so as to continuously improve the competitivenessof products. At the same time, the company continuedto focus on environmental management such asenergy efficiency improvement, pollution control, cleantransportation, and water resource management.

Serious studying, deep thinking, and building afoundation for technological leadership.Innovationis the core driving force of enterprise development. Thecompany has always insisted on promoting technologicalinnovation as the company's first competitiveness,making the "key variable" technological innovation the"largest increment" to promote the company's high-quality development and moving towards a world-class enterprise, and leading the "four manufacturing"with technological innovation to create a comparativecompetitive advantage. During the reporting period, thecompany first launched electrical steel products to fillthe market gap in the ?eld of medium frequency and lowno-load current transformers, the first trial productionof pipeline steel for HCNG (Hydrogen enriched withcompressed natural gas) met the quality designrequirements, the ultra-high strength alloy steel for high-end sawing broke through the bottleneck of productiontechnology, the world's ?rst 100% ultra-thin speci?cationand high magnetic induction oriented electrical steelspecialized production line was built by independentlyintegrating a new generation of annular furnace, andthe second phase of the lighthouse factory of the Cold-RCo. was launched as scheduled to realize the deepeningapplication of intelligent manufacturing scenarios.

Be solid, step by step, to consolidate the foundationof human resources.Talent is an important force for thesustainable development of enterprises. The companyadheres to the goal and ideal that talent is the firstdevelopment force, and on the basis of respecting talents,paying attention to talents, and developing talents, thecompany continues to optimize the construction anddevelopment system of talent team, establishes a careerdevelopment system for the career of high-potentialtalents, and builds a "four horizontal and three vertical"training system for all employees. During the reportingperiod, the company strengthened the incentives ofkey core talents, implemented medium and long-termincentives mechanism such as enterprise annuities,equity incentives, and employee stock ownership ofZhixin EM, and cultivated a fertile soil for attracting andretaining talents.

Check erroneous ideas at the outset and build asolid foundation for intrinsic safety.Safety is thered line and bottom line of enterprise development,we adhere to the safety culture as the guide, safety

Chairman of Beijing Shougang Co., Ltd.

standardization construction as the main line, takingthe "dual control" mechanism as the core, and priorityto the essential safety management as the focus,comprehensively promote the modernization of thesafety production control system, improve the ability toprevent and resolve safety risks, and strive to promotehigh-quality development and high-level safety benigninteraction. During the reporting period, we madeevery effort to promote the strategy of " mechanizedpersonnel replacement, automation reduces manpower,and intelligent unmanned" and other scientific andtechnological safety assistance strategies, took thelead in implementing the construction of an onlinemonitoring and early warning system for safety risks,comprehensively improved the intelligent managementand control capabilities of safety risks, and built a solidsafety foundation for high-quality development andguarded the draw the line of safety.Go hand in hand to build a steady supply chain.The security and stability of the supply chain is animportant guarantee for the sustainable developmentof enterprises. The company attaches great importanceto supply chain due diligence management, promotesthe construction of green supply chain, and creates aresponsible supply chain. During the reporting period,the company carried out ESG training for suppliersto enhance the awareness of social responsibility,actively promoted the construction of green supplychain, carried out life cycle assessment of keysuppliers' products, scientifically and orderly promotedcentralized procurement, established an information-based centralized procurement system, and createdan integrated supply chain system platform that is"sunny, transparent, safe and efficient". At the sametime, we insist on co-creation and co-construction withcustomers, build a smart marketing service platform,implement a new model of online and of?ine integratedmarketing services, strengthen the closed-loopmanagement of customer demands, improve customerexperience and satisfaction, and establish a three-levelservice guarantee system to ensure the stable supply ofproducts and effectively help downstream enterprises tosmooth operation.Forge ahead with even greater resolve, adversitymakes one stronger.The company will fully implementthe new development concept, invigorated full ofvigour, adhere to the modern governance, green andlow-carbon, science and technology to strengthen theenterprise, talent to strengthen the enterprise, intrinsicsafety, upstream and downstream co-creation andco-construction, committed to delivering innovation,Shougang Co. will be built into a steel listed companywith global competitiveness and in?uence.

Message FromChairman

6 7

Beijing Shougang Co., Ltd. was listed on Shenzhen Stock Exchange in December 1999 (Stock Code: 000959),controlled by Shougang Group, a Fortune Global 500 enterprise.Shougang Co. owns Shougang Qian'an Iron & Steel Co., Ltd.(Qiangang Co.), Shougang Jingtang United Iron & SteelCo., Ltd. (Jingtang Co.), and controls Beijing Shougang Cold Rolling Co., Ltd. (Cold-R Co.), Shougang Zhixin Qian'anElectromagnetic Materials Co., Ltd. (Zhixin Co.), and other steel entities, with coking, ironmaking, steelmaking,rolling, heat treatment and other complete production lines. We have a complete series of hot-rolled and cold-rolled ?at products with complete varieties and speci?cations, providing customers with high-quality products suchas electrical steel, automotive sheet, tinplate, pipeline steel, and household appliance sheet, as well as value-added services such as early vender involvement(EVI).

With the strategic focus of promoting and implementingthe development goals of the iron and steel industry withstrong pro?tability, strong innovation ability, excellent assetquality, excellent operation efficiency, energy conservationand environmental protection, we will firmly promote thestrategy of "green manufacturing, intelligent manufacturing,high-quality manufacturing, lean manufacturing, andprecise service", adhere to the two-wheel drive of "capital+ operation", and promote the deepening of reform andhigh-quality development of enterprises. Adhere to thedevelopment direction of "quality + service", continue topromote the development of high-end products focusingon electrical steel, automotive steel and tinplate (tin-freeplate), continuously improve the service level and operationef?ciency of steel material manufacturing, form a number ofcustomer clusters with internationally competitive strategicproduct,and strive to build a steel listed company withglobal competitiveness and influence.

About Us

Development strategy

Organizational Structure

Party Committee Oice

Shareholders'General MeetingSupervisoryCommittee

Audit DepartmentTechnical CenterEnvironmental Protection Department

Material Dropping AreaEmployee Entrepreneurship Development CenterQuality Inspection DepartmentIronmaking Operation DepartmentSteelmaking Operation DepartmentHot Rolling Operation DepartmentResource Development Business DepartmentShougang Jingtang United Iron & Steel Co., Ltd.Beijing Shougang Steel Trading Investment Management Co., Ltd.Beijing Shougang Cold Rolling Co., Ltd.Shougang Zhixin Qian'an Electromagnetic Materials Co., Ltd.Qian'an Shougang Metallurgical Technology Co., Ltd.

Equipment DepartmentProcurement CenterMarketing CenterFinance DepartmentHuman Resources DepartmentSecurity DepartmentEnergy DepartmentOiceArmed Defense DepartmentInvestment Management DepartmentQianshun Technical Center

Party Organization DepartmentDiscipline Inspection CommissionParty Committee OiceParty and Mass Work DepartmentUnionBoard Secretary’ Oice (InvestorRelations Management Department)

Manufacturing Department (LowCarbon Management Center)

Company mission

people-oriented, strengthen enterprise toserve the countryCompany vision

to build a steel listed company with globalcompetitiveness and in?uenceCore values

Integrity, Collaboration,Innovation,Sharing

Customer concept

customer first, integrity first, meticulous,innovative

Strongpro?tability

Excellentoperationef?ciencyExcellent assetquality

Stronginnovation

ability

Excellent energyconservation andenvironmentalprotection

Board ofDirectorsGeneralManagerSecretary ofthe Board

Vice GeneralManager

ChiefAccountant

Strategy, Risk, ESG and Compliance Management Committee

Audit CommitteeRemuneration and Assessment CommitteeNomination Committee

8 9

Company History

1999.12Successfully listedon Shenzhen StockExchange, becomingthe ?rst listed companyin China to introducestrategic investors, the?rst listed company toissue shares through acombination of onlineand of?ine distribution,and the ?rst listedcompany to conductpublic roadshows.

2002.12Shougang Qian'anIron & SteelCo., Ltd. wasestablished.

2005.11Completed thestock-reform.

2022

2004.10Qiangang Co. Phase 1 projectwas put into operation.

2007.01Qiangang Co. Phase IIproject was completedand put into operation.

2008.08Beijing Shougang ColdRolling Co., Ltd. wasestablished.

2009.12Jingtang Co. Phase 1 ?rst stageproject was fully completed andput into operation.

2010.10-2014.04The mainstream process facilities locatedin Shijingshan District, Beijing, were shutdown and transferred to Qiangang Co.

2015.04Acquired 51% equity ofJingtang Co.

2018.03Shougang Zhixin Qian'anElectromagnetic MaterialsCo., Ltd. was established.

2020.06

Acquired 51% equity of BeijingShougang Steel TradingInvestment Management Co.Ltd. (Steel Trading) throughasset exchange.

2021.07

Acquired 19.1823% equityof Jingtang Co.

2022.03

Acquired 49% equity ofthe Steel Trading.

10 11

★"Sharing Ultra-Low Emission Technology Project" won the Securities Daily"2023ESG Innovation Practice Case of Listed Companies" award★ Awarded as"AAA Class ESG Enterprise in China's steel industry"

★ Rated as"A-level enterprise in environmental performance"★ Awarded the"Steel benchmark enterprise for green development"★National Water Ef?ciency Leading Enterprise and Demonstration Enterprise ofIndustrial Wastewater Recycling and Utilization★Awarded the honorary title of "Advanced Group in Organizing and Promotingthe Three-Year Action of Energy Ef?ciency Benchmarking for the Iron and Steelindustry Ultimate Energy Ef?ciency Project in 2023"★Qiangang Co. No.7 air compressor station was awarded as "Class A EnergyEf?ciency Compressed Air Station".★Jingtang Co.'s "combustion-heat-electricity-water-salt" ?ve-effect integratedhigh-ef?ciency recycling system won the 11th Mother River Award for GreenProjects★Jingtang Co. was awarded as pilot demonstration unit for the construction of

carbon management system in Hebei Province

★Zhixin Co. was honored as "Science and Technology Reform Action

Demonstration Enterprise"

★ Zhixin Co. won the 2023 Hebei Provincial Green Factory

★ Cold-R Co. was awarded as an excellent nature protection supporter

★ Passed the carbon certi?cation of the International Certi?cation Body (SGS)

★ Multiple products were awarded as "Green Design Products"

★ Awarded as "National Advanced Metallurgical Greening Unit"

★Passed the occupational health and safety system and HSE management system

certi?cation of Classi?cation Society

★ "Best Service Provider Award" by BMW Brilliance

★"Genuine Partner Award" by Great Wall Motors

★ "Quality Excellence Partner Award" by NIO

★Shougang-BMW Joint Studio was awarded the Beijing Industrial (National

Defense) Trade Union Innovation Studio Alliance

★Quality Inspection Department's Chemical Analysis Laboratory was honored with

the "2023 National May Day Women's Model Post"

★Xu Fang was awarded the "National May Day Labor Medal" and "National May

Day Women's Model Post"★ Huang Fuxiang won the "2023 Capital Labor Medal"

★ Rong Yanming was awarded the "Great Craftsman of Beijing"

★Xu Houjun and Zhang Weizhong were awarded the "National Craftsmen in the

Machinery and Metallurgical Building Materials Industry"

Honors in

Figures for

shareholders' general meetings

meetings of board of directors

meetings of supervisory committeeInformation disclosure

timesInformation disclosure accuracy rate:

100%

Publicly disclosed

documentsAudit coverage rate:

100%100%synchronous operational ratefor environmental protection equipments100%compliance rate in pollutantdischargeTotal investment in environmental protectionin the past 5 years:

4,701 million yuanClean transportation ratio reached

89.46%

General industrial solid waste recycling rate100%

Hazardous waste recycling rate:

99.25%

The greening rate of the factory area:

100%

debut products

Signing rate of labor contracts:

100%Social insurance coverage rate:

100%Proposals response rate:

100%

Training coverage:

100%

Incidence rate of occupational diseases:

0%

The coverage rate of safety training for employeesand related parties:

100%Online procurement proportion:

100%

patents were awarded the Excellent Prize ofthe 24th China Patent AwardWon

provincial and ministerial levelscienti?c and technological awards

12 13

With the goal of building a leading force in low-carbon technology in the future,Shougang Co. released the "Shougang Co., Ltd. Low-carbon Action Plan" throughextensive research on the carbon reduction path of the steel industry at home andabroad. We will continue to promote LCA research, and improve the construction andfunction development of LCA data collection platform and carbon emission managementplatform. The company and its subsidiaries completed the EPD release of hot-rolledsheet and steel strip products, cold-rolled steel sheet and steel strip, hot-dip zinc-aluminum-magnesium(low aluminum) alloy coated steel sheet and strip products. Thecompany has passed the carbon certi?cation of the International Certi?cation Body (SGS),and the first batch of "double carbon" best practice energy efficiency benchmarkingdemonstration plant cultivation enterprises are on the list, and won the title of "NationalAdvanced Unit of Metallurgical Greening". Oriented electrical steel, pipeline steel, non-oriented electrical steel for new energy vehicles, hot-rolled high-strength steel sheetand steel strip for automobiles and other products were awarded as "Green DesignProducts List".

Our environmentalprotection levelcontinues to maintainthe leading position insteel industry

Low-carbonaction

"A" is the highest level in environmental performance rating. A-levelenterprises in environmental performance adopt independent arrange-production in accordance with environmental control requirementsduring the emergency response period of heavy pollution weather.

Shougang Co.'s ultra-low emission management continues to maintain its leadingposition in steel industry. Completed 70 key tasks such as advanced treatment ofsintering machine, hot-air stove, heating furnace, and end treatment of generator set,and successfully passed the review of A-level enterprise in environmental performance.

The coking process energyefficiency is better than thebenchmark value, and theblast furnace and converterprocesses reached the energyefficiency benchmark value instages. Air Compressor StationNo. 7 has become the ?rst ?rst-class energy ef?ciency standardair compressor station in steelindustry.

In the blast furnace/ basic oxygen converter process, the application of high-proportion pelletsin blast furnace and low-carbon technology in large-proportion scrap in converter have beencarried out, and it has achieved mass production capacity of comprehensive carbon emissionreduction of 40% or more for automotive steel products.Low-carbontechnologypractices

Advancingultimateenergyefficiency

Our total carbon dioxide emissions will peak, andsome products will have the ability to reduce carbonemissions by60%.

The company's low-carbon product lines will have theability to reduce carbon dioxide emission intensity pertonne of steel by30% compared with 2020

Total carbon dioxide emissions will decreased by30% with their peak

We will strive to achieve the goal ofcarbon neutrality

By2025

By2030

By2035

From2050to2060

Expandknowledge

Focus 1

Green Pioneers?Environmental Protection and Low CarbonLead Sustainable Development

Shougang Co. Low-carbon Action Plan

14 15

Shougang Co., Jingtang Co., Zhixin Co. and Cold-R Co. are all high-tech enterprises. In terms of technologicalinnovation adheres to the bene?t-oriented and demand-oriented, relying on the "one research institute and multipleR&D centers" R & D system, deepening the technical research projects, optimizing the expert workstations,and building a solid platform for external cooperation. Incubation and efficiency creation of new products, newtechnologies and new processes are accelerating.

Breakthroughsin key processtechnologies

Patentlicensing

StandardformulatinScience andTechnologyAward

Focus 2

Technology Leader? Persisting in Technological Innovation

and Wining Market Recognition

We realized the debut of 6 new products, including 15SQF1250 oriented electrical steel,ESW1021 non-oriented electrical steel, and 980TBF high-strength automotive steel. Amongthem, 15SQF1250 is a new product of medium frequency oriented electrical steel for the future,which provides key core materials for the new DC convergence technology of new energy powergeneration such as wind power and PV, to meet the requirements of large capacity, high energyef?ciency, high safety and low noise under complex working conditions in the electric powerindustry; High-strength and low iron loss non-oriented electrical steel ESW1021 contributesto the high-quality development of high-speed motor industry; Hot-dip galvanized high-strength steel 980TBF meets the demands of the automotive industry for higher strength andbetter forming properties of body structure parts. We focus on solving bottlenecks in the steelindustry, and continue to promote "import substitution" with 26 localization projects, resultingin the supply of 80,000 tonnes.

New productR&D

The company initiated the process and equipmenttechnology for cold continuous rolling of high-gradeelectrical steel using a 6 stands 6 highs rolling mill,realizing breakthroughs in the continuous rolling ofnon-oriented electrical steel for new energy automobiledrive motors and oriented electrical steel for energy-ef?cient transformers, with 96% of the products havinga lateral thickness difference less than or equal to 5μm, which is a leading level in the world; The companyinitiated the multi-mode continuous cast-rollingprocess of hot rolled ultra-thin and high-strengthsteel strip, realizing the efficient endless productionof 980MPa grade products with 1.1mm thickness,enhancing the rolling efficiency of thin-specificationand high-strength strip and improving the ?exibility ofproduction organization.The company obtained 685 patents licenses, including229 invention patents. The "A Method and Device forDetermining the Transmission Torque of Cold RollingMills" and "A Non-Oriented Electrical Steel and ItsPreparation Method & Application" patents of ZhixinCo. were awarded the 24th China Patent Award ofExcellence, and the patent "A Method of ManufacturingLow Temperature High Magnetic Susceptibility SiliconSteel with Excellent Bottom Layer" was awarded the 1stHebei Provincial Patent Award of Excellence.We participated in the formulation and release of 21 international, national, industry and groupstandards.The company has won 21 science and technology awards above the provincial and ministerial levels,and 8 provincial management innovation awards. Among them, "Key Technologies and Applicationsfor Manufacturing Dual Phase Steel with Enhanced Formability" and other 6 projects won the ?rstprize of Metallurgical Science and Technology Award, "New High-Performance Weather ResistantBridge Steel And Application Key Technology" won the ?rst prize of Hebei Provincial Science andTechnology Award, "Product Development and Operation Management of High-end ElectricalSteel for Steel Enterprises to Build Global Competitiveness" won the ?rst prize of the EnterpriseManagement Modernization Innovation Achievements.

16 17

Focus 3

Since 2023, Shougang has always followed the spirit of General Secretary Xi Jinping's important instructions onproduction safety, adhered to the guidance of safety culture, standardized and guided the construction of safetystandardization, moved the gate forward with the construction of "dual control" mechanism as the core, focusedon essential safety management, improved production ef?ciency and reduced risks, comprehensively promoted themodernization of safety production control system and ability, and improved the ability to prevent and resolve safetyrisks. Build a safety embankment with higher positions, higher standards, stricter requirements, and boostinghigh-quality development of Shougang Co.

In 2023, the safety management of Shougang Co. showed a newatmosphere, the essential safety management number of projects wasthe largest in the history, the concept of essential safety managementfor all employees was more solid, a number of high-risk operationprojects were tackled, a number of efficiency improvement and riskreduction achievements were achieved, a batch of advanced experiencethat can be replicated and promoted was formed, 76 national patentswere declared, and the project "Exploration and Application of theConstruction of Essential Safety Management System for MetallurgicalEnterprises Based on Lean Management Thinking" developed byindependent innovation won the second prize of safety science andtechnology progress of China Safety Production Association.From November 14th to 15th, 2023, the inaugural meeting of theMetallurgical Member Safety Alliance of Hebei Emergency ManagementResearch Association and the launching ceremony of the first activityof the Metallurgical Professional Salon were held in Shougang Co. Thecompany, as the ?rst rotating director unit of the safety alliance, activelytargeted the new positioning of the country, the new requirements oflaws and regulations, the new situation of the industry, and the newexpectations of members, comprehensively promoted mutual learningof safety management experience, mutual integration and exchange ofsafety culture, and strived to build a new pattern of win-win situationbetween the construction of safety alliance and the safety developmentof enterprises.

Adhere to the integrated management andcontrol of goals, indicators and responsibilities,the company has clari?ed 95 control indicators,formulated 442 work measures, refined 792work tasks, formed 26 evaluation standards,established an evaluation mechanism, andpromoted the implementation of annual key work.

367 large risk points such as the temperatureof the hot stove top were included in the scopeof monitoring, so as to realize the automaticearly warning of larger risks. The companyhas developed the automatic identificationmodel of 8 monitoring screens, such as initialfire identification and liquid oxygen loadingand unloading, so as to effectively improve theintelligent management and control.

New achievements have been achieved in theimplementation of the main responsibility

New breakthroughs have been made in theconstruction of the "dual control" mechanism

Focusing on bottlenecks such as gas, fireprotection, and limited space, through a seriesof technical measures such as mechanizedpersonnel replacement, automation reducesmanpower, and intelligent unmanned, 371essential safety management breakthroughswere deeply promoted, and the total safety riskvalue was reduced by 10% year-on-year.

New situation have been created byintrinsicsafety management

Safety Escort?Building Solid Safety Dams and

Continuously Reducing Hidden Dangers

18 19

Governance:

Strengtheningthe Foundationof Governance

CorporateGovernance20ESGManagement21IntegrityEcology26RiskManagement29InvestorRelations32

20 21

Corporate Governance

Governance Structure

The Shareholders' general meeting, board of directors, supervisory committee, and management of Shougang Co.all ful?ll their responsibilities, highly coordinate, and ful?ll their duties diligently.

Good corporate governance mechanism is the key to long-term, stable and sustainable development of a company.Shougang Co. has established a standardized and orderly corporate governance structure in accordance withthe requirements of relevant laws, regulations, rules, and normative documents such as theCompany Law of thePeople's Republic of China, theSecurities Law of the People's Republic of China, theCode of Corporate Governance forListed Companies, andListing Rules of Shenzhen Stock Exchange. We have also formed a modern governance systemcharacterized by scienti?c standards, effective checks and balances, ensuring the ef?ciency and compliance forinformation disclosure and the operation of shareholders' general meeting, board of directors and supervisorycommittee.

Shareholders' general meeting.The shareholders' general meeting is convenedand held in strict accordance with theArticles of Association, theRules of Procedurefor General Meetingsand relevant regulations. All shareholders, especially smalland medium shareholders, have equal rights and fully exercise their votingrights. In 2023, 3 shareholders' general meetings were held, and 18 proposalswere passed after deliberation.Board of directors.The company is committed to improving the diversity ofthe board of directors. The directors possess rich knowledge and experiencein various ?elds such as law, technology, ?nance, and management, who arediverse in terms of professional skills, industry experience, age, gender andseniority.The company is committed to improving the independence of board decision-making and governance. The nomination and election of independent directorsare in accordance with relevant laws, regulations and theArticles of Association,and there is no company relationship affecting its independence. Independentdirectors, based on their professional expertise, issue the opinions on majormatters such as periodic reporting, profit distribution, change of directors,related party transactions. The Audit Committee and the Remuneration andAssessment Committee are consist of independent directors entirely.

Governance Structure

Strategy, Risk and Compliance

Management Committee

Audit CommitteeRemuneration and Assessment Committee

Nomination Committee

Board of Directors

Management Team

Supervisory Committee

Shareholders'General Meeting

Shougang Co. held

meetings of board of directors

of which,

independent directors

The board of directors has

directors

proposals werepassed after deliberation

Institutional SystemShougang Co. continued to deepen standardized operations and strengthen scienti?c corporate governance, periodicalcarrying out system formulation and revision, system evaluation and system special inspection, and continuingto improve the subordinate unit management system. In 2023, the company has formulated 20 systems such asManagement Evaluation System for Personnel Sent Abroad to Equity Participation and Controlling Enterprises, ESG WorkManagement System, and revised72 systems such asIndependent Director System, Rules of Procedure of the Boardof Directors, Information Disclosure Management System and External Strategic Cooperation Agreement ManagementSystem,and carried out the special lecture training of the system management and subsidiary system construction;as of the end of 2023, the company has a total of 495 systems, of which 491 are formulated and implemented by thecompany and 4 are forwarded to the government and regulatory agencies. For the core management process, thecompany continues to carry out system evaluation and inspect the implementation of rules and regulations; At thesame time, special inspections of the system will be carried out to promote the standardized operation of the system.ESG ManagementShougang Co. is committed to becoming a scienti?c and technological pioneer of environmental protection in theglobal steel industry, a demonstrator of ultra-low emission, a pacesetter of low-carbon development, a promoter ofindustrial synergy, a leader in the construction of ecological civilization, and a builder of a better society. ESG Management Structure

proposals were passedafter deliberationThe supervisory committee has

supervisors

Board of Directors

ESG Working Advanced

Guiding Group

Strategy, Risk, ESG and Compliance

Management Committee

The board of directors has established four specialized committees:

the Strategy, Risk, ESG and Compliance Management Committee,the Audit Committee, the Remuneration and Assessment Committeeand Nomination Committee. With a highly responsible attitude toshareholders, each committee exerts its own professional advantagesin strategic development, major investment, financial audit, executivecompensation and performance appraisal, etc., providing strong supportfor the scienti?c decision-making of the Board of directors.

Supervisory Committee.The supervisory committee is responsiblefor supervising the company's financial condition, major matters, andthe legal compliance of directors and senior executives, and providingindependent opinions and suggestions, to safeguard the legitimaterights and interests of the company, shareholders and creditors, andguarantee the healthy development of the company.

meetings of supervisorycommittee were held

The company has systematically planned ESG management and established anESG management structure consisting of the Board of Directors, the Strategy,Risk, ESG and Compliance Management Committee of the Board of Directorsand the ESG Working Group. Among them, the board of directors, as the topdecision-making body for ESG management, considers and approves thecompany's ESG objectives and plans, and the issuance of ESG reports, etc. TheStrategy, Risk, ESG and Compliance Management Committee of the Board ofDirectors provides decision-making and consulting support for the Board ofDirectors in ESG management, and researches and proposes matters suchas the company's ESG objectives and plans, and the ESG reports, etc. TheESG Working Group is the executive body of the ESG management; The ESGWorking Group is the executive body of the ESG management work, headed bythe general manager of the company and composed of members including theleadership team of the company, and is responsible for the overall coordinationand implementation of the ESG management work.

of which,

employee supervisors

female supervisors

Note:For more details about the changesin the board of directors during the reportingperiod, please refer to the Beijing ShougangCompany Limited Annual Report 2023.

22 23

Stakeholder CommunicationShougang Co. has strengthened its communication with stakeholders such as the government, regulatory bodies,investors, customers, employees and communities, and has established various channels for daily and specialcommunication with each stakeholder in order to comprehensively understand the demands and expectations ofstakeholders to realize common development.

StakeholdersTopicsCommunication and ResponseShareholders andInvestors

??Corporate governance??ESG management??Anti-corruption??Compliance management??Risk management??Business ethics??Climate change response

???General shareholders meeting /extraordinary general shareholders meeting???Performance brie?ng???On-site investigation???Investor communication (InteractiveEasy Platform, etc.)???Information disclosure???Compliance with laws and regulationsEmployees

??Diversity and equal opportunities??Employee compensation and bene?ts??Employee care and satisfaction???Employee career development andtraining???Occupational health management???Work Safety management

???Employee representative conference???Various employee activities???Meetings and training???Employee performance assessment???Shougang Sincere Friend app???Help for employees in need???Employee satisfaction survey

Customers

???Product quality management???Information security and privacyprotection???Quality service and complaint handling???Responsible marketing???Technological innovation???Green products???Intelligent Manufacturing

???Customer satisfaction survey

???

Customer on-site representative???Green production???R&D innovation???Joint laboratory, innovation studioalliance

Suppliers

???Risk prevention and control???Compliance management???Sunshine procurement

???

Supplier quali?cation audit???Industry benchmarking???

Exchange and visit???Con?ict mineral claim???

Commitment letter???Fair competition and elimination of

commercial briberyGovernment andregulatory agencies

???

Serving national major strategies???Environmental management system???

Energy management???

Water resource management???

Wastewater discharge???

Exhaust gas emission???

Waste disposal???

Biodiversity

???Daily communication and reporting???On-site surveys???Information disclosure???

Compliance with laws, regulations, andpolicy learning???Acceptance of regulatory inspectionsCommunity organizations,non-governmental

organizations

???Public welfare activities

???Public welfare activities

???

Information disclosureIndustry partners, industryassociations, and research

institutions

???Technological innovation???Industry development and win-wincooperation

???

Industry communication

???Seminars and forums???

Joint laboratories and expert

workstationMedia

???Information disclosure

???

Strengthen communication and

exchanges with the media???

Timely disclosure of important

information, news???

Acceptance of media interviews

Material Issues AnalysisIn 2023, Shougang Co. continued to work on the identi?cation of ESG material issues, as well as the assessmentand screening of the issues. The management and practice performance of the 14 material issues identi?ed aredisclosed and responded to accordingly in this report.Issues identification:

Based on the comparative analysis of macro policies, industry policy trends andregulatory requirements, ESG development practices of peers, as well as the company'sbusiness and development objectives, 32 substantive issues of signi?cance or impact tothe company and stakeholders were identi?ed.Issues assessment:

The actual and potential impact of these issues on Shougang Co. were assessed throughonline questionnaires and on-site research with key stakeholders. A total of 905 validquestionnaires were collected.Issues screening:

Based on the issues evaluation results, a substantive issues analysis matrix isconstructed to obtain the ranking results of high and low importance of issues, and thereport focuses on disclosing the issues with high importance. 14 highly important issuesare screened in 2023, including 8 environmental issues, 4 social issues and 2 governanceissues.

Importance to Shougang Co.Low

High

High

Importance to Stakeholders

Assessment Matrix

24 25

Diversity and equalopportunities

Employeecompensation andbene?ts

Employee careand satisfaction

Corporategovernance

Anti-corruption

ESG management

Compliancemanagement

Business ethics

Product qualitymanagement

Information securityand privacy protection

Quality service andcomplaint handling

Employee careerdevelopment andtraining

Occupational healthmanagement

Work safetymanagement

Climate changeresponse

Green products

Biodiversity

Waste disposal

Information disclosure

Risk management

Exhaust gas emission

Waste waterdischarge

Water resourcemanagement

Environmentalmanagement system

Energy management

Serving nationalmajor strategies

Responsiblemarketing

Technologicalinnovation

IntelligentManufacturing

Responsiblesupply chain

Industry developmentand win-win cooperation

Public welfareactivities

Material Issues ListClassi?cationNo.Issue

Society

Work safetymanagement

Product qualitymanagement11Technological innovation13Responsible supply chain

Environment

Environmentalmanagement system18Energy management

Water resourcemanagement20Waste water discharge21Exhaust gas emission22Waste disposal23Climate change response25Green productsGovernance

26Corporate governance29Anti-corruption ESG Management Improvement

Shougang Co. continues to strengthen its ESG management by formulating ESG work systems, managing ESG risks,participating in the development of ESG standards, conducting ESG training and ESG management of suppliers.ESG work systems.The company has formulated theESG Work Promotion Program of Shougang Co.and theESG Work Management System, revised theWork Regulations of the Strategy, Risk, ESG andCompliance Management Committee of the Board of Directors, and clari?ed the responsibilitiesof ESG management work of the specialized committees and departments.Participate in standards formulation of ESG.The company participated in the formulation and release of the twogroup standards "Environmental, Social and Governance (ESG) of Iron and Steel Enterprises Part 1Information Disclosure" and "Environmental, Social and Governance (ESG) of Iron and Steel EnterprisesPart 2 Evaluation Requirements", which deepened the company's understanding of ESG, raised thelevel of attention paid by iron and steel enterprises to ESG management, and facilitated the ironand steel industry in enhancing its ability to develop in a sustainable manner.Implement ESG training.The company actively participates in ESG management training and seminars organizedby industry associations and ESG professional institutions, covering ESG management, carbonemission rights, information disclosure, etc.; It has organized many online and of?ine ESG-related trainings on information disclosure, compliance management, dual-carbon planningroutes, etc., with a cumulative total of more than 13,000 attendees.ESG management of suppliers.The company attaches great importance to suppliers' performance in environmental,social and governance (ESG) aspects. It promotes suppliers to better manage their environmental,social and governance impacts by incorporating ESG factors in their management systems,signing commitment letters, promoting suppliers to establishment of social responsibilitymanagement systems, and organizing and conducting ESG training for suppliers.

ESG Honors

Case: ESG training meetingIn order to enhance employees' knowledge and understanding of ESG and strengthen ESG managementand practice, Shougang Co. organized and held an ESG training meeting on June 30, 2023, released theESG work promotion plan, which was attended by more than 100 persons, including relevant leaders ofthe company, heads of relevant departments and professional managers.At the meeting, experts made a thematic training report on "ESG Megatrend and Best Practices in Ironand Steel Industry under the Dual Carbon Goal" focusing on the status quo of ESG development in theiron and steel industry and the practices of excellent enterprises, which helped the employees to betterunderstand and recognize the importance of ESG to the sustainable development of enterprises, andlearn about the ESG practices of excellent enterprises. Com;any issued theESG Work Promotion Programof Shougang Co. to systematically sort out ESG work, further clarify the management responsibilities ofeach specialized department, and ensure the implementation of ESG work.

? "Sharing Ultra-Low Emission Technology Project" was selected as "2023 ESG Innovation Practice

Case of Listed Companies" by Securities Daily? Awarded as “AAA Class ESG Enterprise in China's steel industry”

26 27

Case: Establish the the concept of integrity and carry out integrity activities

The company compiled and printedDiscipline and Violation Warning Case Collection, selected 28 cases,divided into four chapters such as the spirit of the eight provisions of the Central Committee and thechapter of the crime, with a profound analysis, an in-depth explanation of the underlying reasonsbehind the case. We organize the party branches of the sector to study, enhance the party membersand cadres respect for the law and discipline,

The company organizes and carries out many activities for families to assist integrity, constantlystrengthens the integrity concept, encouraging families playing an important role in the education of?ght against corruption and advocating cleanliness, and jointly constructs a line of defense for familiesand enterprises to resist corruption. We organize and convene the annual conference on integrity co-construction, representatives of owner units and business collaborators exchange speeches on thepractices and suggestions of integrity co-construction work, and all business collaborators fill out thequestionnaire on Shougang Co.'s integrity co-construction, continuously strengthen the cooperationand co-construction between Shougang Co. and related parties in the ?eld of integrity, and promote theestablishment of integrity, honest and win-win cooperative relationship.The company has established a "four-in-one" letter reporting channels, including letters, visits,online and telephone, strictly enforcing theRules for Supervision and Discipline of Discipline InspectionOrgans of CPC, and seriously investigating and handling clues to problems, and maintaining a strictkeynote at all times.

Reporting channels:

The company carries out a rich variety of integrity activities to cultivate a new style of clean era, and?rmly "of?cer and clean integration, diligence and integrity as one" concept of integrity. We organizedthe fourth integrity culture month activities, by carrying out the collection of clean brand name andLOGO, speech contest, calligraphy and painting exhibition, film advocating cleanliness, signing acommitment, learning forum, clean knowledge contest and other 8 activities, collect all kinds ofcalligraphy works more than 350 pieces, clean brand LOGO 28, to participate in the preliminary roundof the knowledge contest and the number of people in the speech contest of more than 4,000 persons.So as to guide party members, cadres and the majority of workers, family members to cultivatethemselves, integrity and family, to promote comprehensive anti-corruption building foundation.

Integrity EcologyShougang Co. conducts business cooperation with a professional, honest, and integrity attitude, strictly adheringto the highest standards of business ethics to ensure integrity in operations. We respect the principles of marketcompetition and actively promote and maintain a fair and free market competition environment. We ?rmly opposeunfair competition, monopoly, and money laundering, and carry out comprehensive management in areas suchas anti-monopoly and anti-money laundering. We attach importance to and continuously cultivate an integritycorporate culture, firmly resisting any form of corruption, and are committed to creating a healthy businessecosystem. In 2023, the company did not receive any penalties related to business ethics.The company continues to strengthen the construction of integrity, build and constantly improve the "personalprevention, technical prevention, systematic prevention+culture" integrity risk prevention system, continue totighten the fence of the system. According to the work requirements of the higher authorities, combined with theactual situation, the company has formulated and issued theAnti-corruption and Integrity Education and TrainingSystem, Management System of Position Rotation for Personnel with Business Disposal Rights,Measures for Testingthe Knowledge of Clean Government Laws and Regulations for the Pre-service of the Leadership, Management Systemof Party Members' Accountability for Disciplinary violations, System of Handling Employee Irregularitiesand other rulesand regulations, which are strictly enforced in the daily business management of the enterprise and improved ina timely manner to provide a fundamental guideline. In 2023, the proportion of operations that have undergonecorruption risk assessment was 100%.

We in-depth study and implement the Xi Jinping Thought on Socialism with Chinese Characteristics for a NewEra. The company incorporates anti-corruption education and training, insisting on the inclusion of the relevantcontents of integrity study in the theoretical study group of the Party committee and the meeting of the basicParty committee secretaries, organizing and carrying out the activities of integrity education, legal education, etc.,realizing the full coverage of the Party members' leading personnel and the personnel in the positions of businessdisposal, and the training of the total number of employees reached more than 10,000, accounting for more than50% of the total number of employees. The company organizes and carries out key external personnel integrityeducation training courses, each unit in charge, key external-related positions with business disposal rights and

28 29

Case: Audit 100% coverage

Risk ManagementShougang Co. takes compliance with laws, regulations and social norms as a prerequisite for sustainable developmentof the enterprise, fully implements the construction of the rule of law and builds a compliance management system. Thecompany has established a standardized and effective risk management and internal control system, and continuouslyimproves its risk prevention capability to ensure the safe and sound operation of the company. Compliance ManagementShougang Co. ?rmly establishes the awareness of whole-process compliance management, regards legal complianceoperation as the fundamental for the survival and development of the enterprise, and continuously improves the ability ofcompliance operation. According to the internal compliance management system standards, Shougang Co. has de?nedcompliance policies and objectives, improved the compliance management organizational structure and responsibilities,comprehensively reviewed the compliance risk database, formulated compliance operation and guarantee mechanisms,and evaluation and improvement management systems, and established a complete compliance management systemwith “strengthening internal control, preventing risks and promoting compliance”.In April 2023, Shougang Co. passed the certification of compliance management system GB/T 35770-2022/ISO37301:2021 standard. We are the ?rst enterprise in the domestic iron and steel industry passed the certi?cation ofcompliance management system. In 2023, the company did not incur any major non-compliant incidents such aslegal sanctions, regulatory penalties, signi?cant property losses, and reputation damage.

Passed the standard Certification of ComplianceManagement System GB/T 35770-2022/ISO 37301:2021‘Innovation and Practice of "Four-in-One" ProcurementWhole Process Compliance Management of Iron & SteelEnterprises’ won First Prize of Metallurgical EnterpriseManagement Modernization Innovation Achievements.

Compliance Management System Certification

CompliancePolicy

Governing the companyin according with lawand regulations to ensurecompliant operation in allaspects, and fulll complianceobligations

Advancing prevention andcontrol to ensure compliancein all time, and standardizemanagement

Pursuing excellence andcontinuous improvement tobuild corporate brandEnhancing responsibilityto ensure compliance foreveryone, and foster acompliance culture

In 2023, the company adhered to the guidance of Xi Jinping's Thought ofSocialism with Chinese Characteristics for the New Era, implemented thespirit of General Secretary Xi's important speech in the twentieth CentralAudit Committee, taking promoting business operations in accordance withlaws and regulations as management concept, closely around the key tasks ofthe company highlight key points, serving the overall situation, preventing therisks, solving the dif?culties, and strictly implementing the risk assessmentwork.All departments and subsidiaries of Shougang Co. carry out risk self-inspectionin accordance with the principle of comprehensiveness, and the Audit Departmentevaluates the key business areas of the company in accordance with the principleof materiality, including procurement management, investment management,inventory management, sales management, outsourcing, ?nancial management,and social responsibility; The evaluation of key areas of subsidiaries includesgovernance structure management, procurement management, salesmanagement, money and capital management, contract management, inventorymanagement, outsourcing, legal affairs management, and engineering projectmanagement.During the reporting period, the audit scope covers 100% of the total assetsin the consolidated statements.There were no corruption issues, no penaltiesrelated to business ethics.

Audit scopecovers

100%

of the total assets inthe consolidatedstatements

party members and cadres of more than 80 persons to participate in, through lectures, on-site teaching, videolearning, group seminars, integrity testing, writing experience, etc., to comprehensively enhance the awareness ofparty members and cadres of integrity, to create a clean cadre. Jingtang Co. carried out " Integrity Class " educationand training for 33 sessions, amounting to more than 2,700 persons, designing different education and trainingprograms according to different groups of people, setting up more than 10 training topics, opening high-qualitycourses. The company has given 6 lectures on Party rules and discipline and minor corruption in the rotationaltraining class for grass-roots leaders, and carried out disciplinary education in the model training classes for partymembers, team leaders, and grass-roots managers of tinplate plant, so as to make the discipline and rules clear.Shougang Co. has deeply carried out the work of co-construction for integrity with business partners. In terms ofsupplier access, it requires the signing of theCommitment Letter of the Code of Conduct for Business Partners,andsends theNotice Letter of co-construction for integrityto suppliers on important holidays every year, so as to jointlybuild a clean cooperation relationship with business partners.

30 31

On November 1, 2023, Shougang Co. helda conference to promote the compliancesystem, with a total of more than 100persons attending the conference,including members of the leadershipteam of the company and its holdingsubsidiaries, as well as persons incharge of relevant departments.This conference focused on corporategovernance and information disclosure,under the regulatory requirements ofthe registration system, according to theactual situation of the company, combinedwith market cases, the company'srevisedSubsidiary Management System,Information Disclosure Management System, whose key content were interpreted, and the compliancerequirements of corporate governance, information management and subsidiary management wereput forward. The conference was of great signi?cance in enhancing employees' compliance awareness,strengthening employees' system learning, and improving the level of information management. Risk Management

Shougang Co. has established a strict, standardized, comprehensive, and effective risk control systems, promotedthe construction of risk special governance and risk warning indicator systems, and continuously optimized andimproved the internal control system construction. Thereby, the effective integration of risk control and compliancesystems is ensured.The company has formed a risk control system consisting of risk control management system, risk control manual,and risk control evaluation manual, formulating theRisk Management System,and theRisk Control Manual. Riskmanagement is carried out according to the procedure of "Risk assessment, Strategy formulation and implementation,Process management and supervision, and Risk reporting". In 2023, the company continued to improve the internalcontrol measures, comprehensively revised the risk control management system and risk control manual, systematicallypromoted major risk control special projects, and continuously improved the risk management system.

Special Compliance TrainingCase: Propaganda and implementation of the compliance system

Compliance management system.The company continues to strengthen the construction of compliance systemand has established an organizational structure for compliance management consisting of the Board of Directors,the Compliance Working Group, the Of?ce of the Secretary of the Board of Directors, as well as various businessdepartments and supervisory departments; The company has innovatively established the business managementmodel of "Three Compliance Databases ", forming a compliance management system with the basic compliancemanagement system as the core, supported by special management measures and management guidelines inkey areas, providing institutional support for compliance management. The company has formed a systematic andstandardized compliance guideline system by compiling special compliance management guidelines and organizingregular compliance management system reviews to continuously improve the compliance management system.

Constitution,Civil Code Publicity

Organizational Structure

Decision-making level:

Board of Directors, the highest responsible organization of the company'scompliance management system, carries out compliance work. With the purpose of ensuring thecompany's compliance operation, it carries out top-level design and solves the problem of powerallocation in compliance management work.

Management level:

Compliance Working Group, the promotion management organization of compliancemanagement system, is responsible for allocating suf?cient resources to establish, develop, implement,evaluate, maintain and improve the compliance management system.

Execution level:

Board Secretary Of?ce is the comprehensive department of compliance management;Departments of Business are the main responsible department of the compliance management systemand the implementation organization of speci?c work;Audit Department and Discipline Inspection Commission is the supervision department of compliancemanagement.Compliance operation mechanism.The company has established a compliance risk identi?cation and evaluationmechanism based on business units and specialties, and implemented compliance risk classification controland management; The company carries out identi?cation and evaluation of laws and regulations and complianceobligations, and establishes company level three ?le libraries includingLaws and Regulations Library,ComplianceObligations LibraryandCompliance Risk Libraryto ensure that the company always follows the requirements of thelatest regulations; The company organizes the departments in charge of key areas to formulate special complianceprograms and explore typical practices, and at the same time strengthens the construction of compliance systemsin subordinate units; The company establishes a legal information system and a dynamic feedback and reportingmechanism for compliance issues.Compliance management supervision.The company has established a three-tier supervision mechanism ofself-inspection by the department in charge of compliance, special inspection by the comprehensive departmentof compliance management, and supervision and inspection by the supervisory department, which is organicallyintegrated with the company's management related to risk control and internal control to realize strengthening ofinternal control, preventing risks and promoting compliance.Fostering compliance culture.The company continuously improves the breadth and depth of compliancepublicity through propaganda months, knowledge quizzes, special compliance training, rule of law auditoriumtraining, focused dissemination by We Media, and the signing of the "Compliance Commitment" by all employees,etc. Meanwhile, the company actively participates in compliance management training organized by the industryassociations, and encourages compliance administrators to obtain quali?cation certi?cates, so as to create a strongcompliance atmosphere of "everyone always complies with everything" and make every employee a practitionerof compliance management and a promoter of compliance construction. In 2023, the company carried outactivities such as legal institutions and enterprises co-construction, "Civil Code Propaganda Month", ConstitutionPropaganda Week, and online compliance knowledge quiz, etc., to enhance the concept of the rule of law forthe employees, strengthen the awareness of compliance, and create a strong atmosphere of learning the law,understanding the law, and abiding by the law.

32 33

Case: Convene the high quality development strategic seminar

questionswere respondedinteractively

The company attaches great importance to communication with investors, alwaysinsists on actively communicating with investors in a sincere and responsible manner,and continuously optimizes the investor communication mechanism, ensuringinvestors' right to know, right to participate, right to express, and right of supervision.Through holding performance brie?ng sessions, investor interactive platform replies,and investor hotlines, the company shares its operating results to investors andanswers questions on issues of general concern to investors. In 2023, the companyorganized and held a total of 3 performance brie?ng sessions to present the company'soperating results to all investors for the year 2022 and the ?rst quarter of 2023, thehalf-year of 2023, and the third quarter of 2023; The company released 6 records ofinvestor activities and responded to 635 questions interactively to guarantee the rightsof minority shareholders to know about the company's production and operation, andeffectively safeguarded the legitimate rights and interests of minority shareholders.

Through the investment strategy meeting, teleconference,on-site research, increasing the degree of openness,investors deeply understand the value of the company.In 2023, the company participated in 7 securitiesinvestment banking strategy meetings, organized 2teleconferences, received 2 investor visits and exchanges,organized investors to the company on-site research,and exchanged information with more than a hundredanalysts and investors on the company's performance anddevelopment prospects.Through holding multiple development forum, investors hadan in-depth understanding of the company's development plan.In 2023, the organization held 2023 (the second) High-endMagnetic New Materials Development Forum, to presentthe company's electrical steel development prospects tomore than 160 customers and investors; The companyinvited media journalists, investors to participate in the2023 Shougang Automotive Steel High-end TechnologyForum, so that investors can understand the research anddevelopment progress of low-carbon automotive sheetproducts and the plan of the low-carbon action more fully.

On April 19, 2023, Shougang Co. conveneda seminar on the high-quality developmentstrategy of the company at Shougang Qian'anConference Center, inviting independentdirectors, representatives of securities dealersand analysts to attend. The independentdirectors and representatives respectively putforward valuable professional suggestionson the following aspects of promoting thecompany's high-quality development, such asgreen and low-carbon development, resourceintegration and development, overseas marketlayout, implementation of incentive mechanism,creation of New Growth Poles and subdomainsplitting.

2023 Shougang Automotive Steel High-end

Technology Forum

The three lines of defense for risk management

Risk early warning.The company has established a risk warning and control system, built a four-level riskframework, and formed a list of operational and market risks; The company has established a risk earlywarning tracking and reporting mechanism, sorting out and summarizing the experience of risk early warningimplementation, to realize the automatic collection and calculation of risk indicator, indexed monitoring and earlywarning, control and tracking, so as to discover potential risks in a timely manner, comprehensively enhancing thelevel of comprehensive risk management, and strengthening the awareness of risk prevention of the whole staff.Risk reporting and special management.The company issues annual risk management reports by specialwork on risk control as a carrier; it continues to promote special risk governance and conducts periodic riskmanagement inspections of its subordinate organizations.

Tax ManagementCompliance with tax laws is the most basic social responsibility of enterprises. The company has establisheda comprehensive tax management system and an effective tax risk assessment and evaluation mechanism,providing pre-warning, in-process control, and post-assessment of tax risks. The company regulates the entireprocess management of tax-related accounting, declaration, monitoring, evaluation, forecasting, and reporting.By formulating tax management measures, enhancing training and learning, and improving invoice management,we strengthen tax management foundation, thereby strengthening enterprise tax risk management and activelypreventing tax risks.The company has formulated standards and norms for the declaration and management of various taxes, andall tax operations are carried out in accordance with the laws and regulations, and the relevant tax managementsystems include:

Measures for Tax Administration, Measures for Invoice Administration, Measures for Stamp DutyAdministration, Measures for the Administration of Deduction of Asset Losses before Enterprise Income Tax, Measuresfor the Administration of Special Additional Deductions for Individual Income Tax, Measures for the Administration ofDeductions for Research and Development Expenses before Taxation.Investor RelationsUploaded

documentsPublicly disclosed

documents

reporting documentsThe100%accuracyrate of information disclosure

Information disclosure is an important channel for investors and the public tounderstand the company and obtain information on the company's productionand operation, as well as the basis of communication between the two sides.Shougang Co. attaches great importance to the work of information disclosure,and strictly fulfills the obligation of information disclosure followed by therequirements ofRules for Listing on the Shenzhen Stock ExchangeandInformationDisclosure Management System, to ensure that information disclosure is timelyand fair, and that the disclosure is true, accurate and complete.In 2023, the company completed information disclosure through the informationdisclosure system of the Shenzhen Stock Exchange for 33 times and uploaded 288documents, of which 155 were publicly disclosed and 133 were ?led. Informationdisclosure for the whole year was timely and complete, with an accuracy rate of100%.

Business units andbusiness entities carry outsystematically analyze,identify, manage andmonitor the risks involved.

Risk managementdepartment is responsiblefor coordinating andorganizing corporaterisk management andproviding early warning ofrisks on major issues.

Internal audit department and the auditcommittee under the board of directors areresponsible for risk management oversightand identifying new risks, other risks andmanagement deficiencies and facilitatingoversight of ?rst and second lines of defenseinspections and corrections.

First line of defense

Second line of defense

Third line of defense

34 35

EnvironmentalProtection:

Playing aDemonstration Eect

EnvironmentalManagement36UltimateEnergyEfciency42WaterRescourceManagement46Low-carbonDevelopment48GreenProducts56Biodiversity59

36 37

Management Structure and Certi?cation

Shougang Co. strictly complies with relevant national environmental management laws and regulations, establishes acomprehensive environmental management system, and continuously improves management systems and methods.During the reporting period, the company has formulated regulations such as theEnvironmental Protection ManagementMeasures. According to the requirements of theEnvironmental Management SystemGB/T24001-2004, the companypassed the ISO 14001 environmental management system certi?cation, and the certi?cation ratio reached 100%. We alsoinvited third-party organizations to conduct annual audits of environmental management systems, so as to improve thelevel of environmental management.Shougang Steel's environmental management system consists of three tiers:

Shougang Co. is committed to eco-friendly practices, pivotal for high-quality corporate development. We embracegreen development, enhance low-carbon management, and integrate ESG principles thoroughly into strategicdecisions and operations. Our consistently efforts have earned us a "A-level" environmental performance rating.We've also launched a comprehensive low-carbon action plan. The company is honored as one of the inaugural"Dual Carbon" Best Practice Energy Efficiency Benchmarking and Cultivation Enterprises in the steel sectorand stands as the first in Hebei Province to manage hazardous wastes via a direct approach. We have receivednumerous accolades, including the "Advanced Group in Organizing and Promoting the Three-Year Action for Ironand Steel Ultimate Energy Ef?ciency Project", "National Advanced Metallurgical Greening Unit", "BenchmarkingGreen Development Enterprise", and "Provincial Energy Conservation Enterprise for 2023". Furthermore, we arerecognized as a "2023 Provincial Water-Saving Benchmark Enterprise". Zhixin Co. has been named the 2023 HebeiProvincial Green Factory. Our products, such as oriented electrical steel, pipeline steel, non-oriented electricalsteel for new energy vehicles, hot-rolled high-strength steel sheets and strips for automobiles, and cold-rolledhigh-strength steel sheets and strips for automobiles, have been awarded "Green Design Products".

Key environmental protection projects

Investment(RMB10,000)

E?ectNo.2 Sintering Plant Optimization and Upgrading Project ofDesulfurization and Denitri?cation System

9,450

NOx & SO

emission concentrationmeeting design standardsrequirementsNo.3 Sintering Plant Particulate Emissions DenitrificationUpgrade and FGD ash Retro?t Project

4,300

NOx emission concentrationmeeting design standardsrequirementsQiangang Co. BF No.2 Hot Stove Desulphurization andUpgrading Project

5,400

SO

emission concentrationmeeting design standardsrequirementsQiangang Co. Environmental Protection ImprovementProject(BF No.2 Hot Stove Desulphurization and UpgradingProject)

4,310

Washing machine put intooperation, meeting relevantrequirementsSintering Plant Old System Environmental ImprovementProject for Finished Product Warehouse Dust Removal SystemImprovement

1,287

Meeting design standardsrequirementsNo.1 Steelmaking Plant Sleeve Kiln Raw Material workshopUnloading and Loading Mode Optimization Project

2,058

Meeting design standardsrequirementsProject to Dust Hoods in the Ladle Slag Flipping Area andLadle-to-Ladle or Return Positions

1,200 Achieving design goalsProject to Add Desulfurization Facilities to the Heating Furnacein the Hot Rolling Department

5,896

Meeting design standardsrequirementsProject to Add Denitri?cation Facilities to the Heating Furnacein the Hot Rolling Department

3,499

Meeting design standardsrequirementsHot Rolling Department No.2 Hot Rolling Shop Main RollingLine Dedusting System Upgrading and Reconstruction Project

1,408

Meeting design standardsrequirementsDepartment of Energy Generating Units Add DenitrificationProject

1,689

Meeting design standardsrequirementsProcurement Center Solid Waste and Environmental QualityImprovement Project

6,318

Meeting design standardsrequirementsJingtang Co. Industrial Furnace Smoke Exhaust SystemUpgrading Project

Meeting design standardsrequirementsZhixin Co. DCL Unit Denitrification Modification Project forAchieving standards of Environment Protecting

1,200Meeting standards requirements

Key environmental protection projects of the company as follows:

Shougang Co. has further pushed forward pollution prevention and control, builta number of key environmental protection upgrading projects, further reducedpollutant emissions, and implemented intelligent upgrading of environmentalprotection management. The company has established an intelligent environmentalcontrol system, integrating two platforms to monitor organized and unorganizedpollution sources meticulously. We have installed Total Suspended Particles (TSP)monitoring facilities across production and material transportation processes,set up air quality monitoring stations at strategic locations such as main factoryroads and workshop entrances, and developed distributed control systems (DCS).These measures ensure real-time surveillance and efficient management of allmonitoring points, provide comprehensive control over unorganized emissions, andsigni?cantly enhance our environmental protection management's effectiveness.During this period, Shougang Co. invested 838 million yuan in environmentalprotection, initiating several pivotal environmental improvement projects. Theseefforts have led to a notable reduction in pollutant emissions and a substantialenhancement of the ecological environment surrounding the plant. In 2023, weachieved a 100% synchronous operational rate for environmental protectionequipment, a 100% compliance rate in pollutant discharge, ensuring totalemissions met permit requirements, and occurred no signi?cant environmental orsocial security issues.

Investment and Performance

Environmental protectioninvestment

million yuan100%

Synchronous operationalrate for environmentalprotection equipments

100%

Compliance rate inpollutant discharge

Environmental Management

The ?rst level is theEnvironmental ProtectionLeadership Group. It isresponsible for the company'scomprehensive environmentalmanagement work, studyingmajor environmental issueswith in the company. makingdecisions, coordinatingand solving importantenvironmental problems.

The second level is the Environmental Protection

Department. It is responsible for developingand enhancing the company's environmentalmanagement system, structure and goals.Additionally, this department oversees themonitoring, inspection, and evaluation ofthe company's environmental managementeffectiveness. This department coordinates effortsat enhancing the performance of each subsidiary,thus ensuring their compliance with legalrequirements when conducting environmentalimpact assessments on construction projects.

The third level is

the EnvironmentalProtectionDepartments ofeach subsidiary,responsible forthe constructionmanagement,and monitoringof the localizedenvironmentalprotection system.

Relevant certi?cation certi?cates

38 39

Environmental Publicity and TrainingThe company strengthened environmental protection publicity and education, actively carried out environmentalprotection training to enhance environmental protection awareness, and the coverage rate of environmentalprotection training was 100%. During the reporting period, the company cooperated with the University of Scienceand Technology Beijing and other research institutes and organizations to carry out knowledge disseminationactivities for 18 times, and participated in legal education for 3 times in conjunction with the "6th Five-Year" WorldEnvironment Day. Targeting A-level performance standard of Hebei Province and other documents, the companycompiled environmental protection training textbooks and organized 12 environmental protection trainings covering800 persons for environmental protection personnel of each process, laying a foundation for personnel at all levelsto master the policy and apply the technologies.

Case: Shougang Co. launches Law Publicity Activities on Environment DayJune 5, 2023 was the 52nd World EnvironmentDay, in order to deeply publicize and implementXi Jinping's thought of ecological civilization,and guide the workers to consciously fulfillthe responsibility of ecological environmentalprotection, Shougang Co. organized and carriedout the activities of environmental protectionand law-enforcement propaganda on theEnvironment Day, and a total of more than 80representatives of the workers of each unitparticipated in the activities and signed the"environmental protection and compliance withthe law commitment". The company encouragedemployees to practise the green developmentideal of Shougang Co. with practical actionsby posting publicity posters and banners,distributing environmental protection brochures,on-site preaching of environmental protectionlaws and regulations and other forms, and thecompany popularized environmental protectionknowledge and general knowledge of green lifeto the staff, advocated the ideal of simple andmoderate, green and low-carbon, civilized andhealthy life, and created a good atmosphereof "everyone cares about the ecologicalenvironment, and everyone participates inenvironmental protection".

Pollution Management

Shougang Co. is dedicated to achieve the ambitious goal of establishing a "?rst-class environment." We continuallyenhance our environmental protection responsibility system and rigorously advance the pollution control ofwaste gases, wastewater, and residues to improve our environmental footprint. On August 15, 2023, during the"National Ecological Day Hebei Activity," Jingtang Co.'s "Reducing 1580 m

Blast Furnace and Heating FurnaceGas Consumption" project was recognized as a special achievement. Additionally, the "Reducing the 2250 mmHot Rolling Mill Public and Auxiliary Areas for per tonne of Steel Power Consumption" project, along with sevenother projects, received the First Prize for Excellent Achievements in Improvement and Innovation in the ?eld ofEnergy Conservation and Emission Reductionin Hebei Province. These accolades underscore our commitment toenvironmental stewardship and our ongoing efforts to enhance energy ef?ciency and reduce emissions.Jingtang Co. practices the mission of green development, and actively integrates into the regional ecologicalconstruction. The focus of environmental protection management has been shifting from pollution control toenvironmental quality improvement. We implement precise, scientific pollution and legal pollution control,making waste gas, waste water, pollution control from the "design plan" to the "construction plan". Since 2018,Jingtang Co.has invested more than 4 billion yuan in deep environmental governance, and actively promotedthe implementation of ultra-low emission transformation for the entire steel process. Sintering and pelletizingprocesses are both employed CFB-FGD desulfurization process, coke oven ?ue gas employed de-Nox technologyof SCR method+CMB. We fully implement uncontrollable emission management, build the world's largest singlespan pellet yard enclosed greenhouse (all material yards such as pellet yard, coal yard, and iron ore yard arefully enclosed), and have implemented many environmental improvement projects successively, to promote thecontinuous reduction of pollutant emissions per tonne of steel, building the ultra low emission systems based onthe new generation of steel processesShougang Co. has witnessed a consistent decrease in comprehensive energy consumption per tonne of steel overconsecutive years. In 2023, this ?gure fell by 1.73% year-on year. During the same time, our sulfur dioxide (SO

) andnitrogen oxides (NOx) emissions stood at 2,075 tonnes and 4,022 tonnes, respectively, signi?cantly below the limitsset by regulations.

40 41

The No.2 blast furnace of Qiangang Co. is designedto produce 2.2 million tonnes of hot metal annually;it adopts advanced technologies at home and abroad,such as the soft water closed circulating system andindustrial purified water circulating system, fullystatic adjustable axial fan, fully dry bag gas removalsystem, TRT, pulverized coal injection system, andhot stove combustion preheating air. Over the years,the factory has continued to make great efforts toimprove its green manufacturing capability, andis committed to becoming a demonstration blastfurnace of "energy conservation and environmentallyfriendly, clean and efficient", on the basis of givingfull play to the functions of the existing energy conservation and environmental protection facilities,strengthening the use of new environmentally friendly and energy conservation new technologies, makingevery effort to improve energy conservation and environmental protection capabilities, optimizing andmeeting the standards, and continuing to make efforts to build a green, high-ef?ciency, low-consumptionblast furnace.

Clean TransportationShougang Co. introduces advanced logistics management, rational planning and implementation of transferringand storage, as well as loading and unloading, lifting, distribution, information processing and other logisticsactivities, so as to reduce the impact of logistics on the environment. Meanwhile, Shougang has continued todeepen the reform, accelerated the development of green and clean energy, implemented the replacement withnew energy vehicles, and realized a continuous increase in the proportion of clean transportation.In 2023, the company's clean transportation reached 89.46%. All raw materials and fuels entering the plant ofQiangang Co. are transported by clean transportation. Jingtang Co. makes full use of the advantage of being nearthe sea, and all raw materials and fuels such as coal and iron ore are transported by vessels and train, and rawmaterials are transferred through closed belt corridors. All transfer stations and receiving points are sealed withadvanced double-layer sealing technology, dust collection hoods and dust removal systems are set up.

The clean transportation ratio continues to rise(%)

Case: Qiangang Co. No.2 blast furnace won the "Champion Furnace"

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Waste DisposalShougang Co. follows the general principle of "reducing the total amount of solid waste and improving the ef?ciency ofcomprehensive utilization", and carries out source reduction control and specialized management of waste. Throughthe source, process, end and comprehensive utilization, all solid secondary resources are recovered and ef?cientlyutilized to realize reduction, resourcefulness, productization, and maximize the bene?ts, so as to achieve the solidwaste "not leaving the factory". Jingtang Co. has been awarded the title of "Industrial Resources ComprehensiveUtilization Base" by the Ministry of Industry and Information Technology and the title of "Waste-free Factory" at theprovincial level, in cooperation with the University of Science and Technology Beijing, developed "a solid waste-basedconcrete production and application technology for solid waste-based cementitious materials with multi-solid wastesynergy", which was selected as Beijing's innovative green technology recommendation catalog.In 2023, Shougang Co. categorized its general industrial solid waste into six types: granulating slag, steel slag,dust and sludge, iron scale, resistant material, and cold rolling sludge. The company produced a total of 12.6692million tonnes of such waste. Out of this, 2.5795 million tonnes were redirected back into production processes,

8.4053 million tonnes were managed through cooperative disposal efforts, and 1.6233 million tonnes were utilized

in societal applications, achieving a 100% recycling rate. This comprehensive approach to waste managementemphasizes Shougang Co.'s commitment to sustainability and its effective strategy in minimizing environmentalimpact through the ef?cient reuse and recycling of industrial waste.The dangerous waste is disposed through environmental protection companies with treatment quali?cation, andthe disposal is strictly monitored to ensure that it will not in?ow into the society, while the storage of dangerouswaste is strictly managed. In 2023, the amount of dangerous waste generated was 381,900 tonnes, and the amountof recycling was 379,000 tonnes, with the proportion of recycling reaching 99.25%.

Packaging Material Use and ManagementShougang Co. has formulated the Packaging Quality and Packaging Materials Management SystemandSteel ProductQuality Labeling Management Systemto manage the production bases according to the business needs of packagingquality and packaging materials management, on the basis of which the bases have established theOn-siteManagement Measures for Process Materials and Packaging Auxiliary Materials,Management Measures for Labelingand Traceability,Procurement Standards for Packaging Auxiliary MaterialsandSpecifications for Product Labelingandother systems.The company advocates green packaging, promotes eco-friendly, reduced and recyclable packaging, and usesrecyclable packaging materials.The company insists on the use of eco-friendly materials for product packaging, strict control of prohibited/restrictedsubstances, rust-proof paper, industrial plastic ?lm, plastic plate and other materials used are in line with ROHS,SGS and other requirements; The company gradually carries out the work of thinning, replacing and simplifyingpackaging materials, and uses more environmentally friendly materials to reduce usage of packaging materialsunder the condition of ensuring the quality of product packaging; By strengthening quality control and order structureoptimization, we reduce the proportion of small weight coils, improve the utilization ef?ciency of packaging materials,and reduce the amount of packaging materials; We gradually expand the recycling types and recycling amounts ofpackaging materials in their own processing and distribution system, and improve the reuse rate.

The company has established a complete productionline for the treatment of desulfurization slag andsteel slag, realizing the maximum recycling ofdesulfurization slag and steel slag. For the dustsludge with low alkali metal content and secondaryresources such as iron scale, they are directlyutilized in sintering. For the dust sludge with higheralkali metal content, in order to realize the recyclingof iron and zinc, the company has processed a totalof 126,800 tonnes of zinc-containing dust sludge withthe help of external rotary kiln, and the processedkiln slag is used as iron-containing resources to beutilized in the plant again.

Case: 100% recycling of steel slag and dust sludge

42 43

Shougang Co. implements theThree-Year Action Programfor Energy Efficiency Benchmarking in the Iron and SteelIndustry,carries out in-depth research on energyconservation and consumption reduction in processes,takes the opportunity to create the ?rst batch of " dual-carbon" Best Practice Energy Efficiency BenchmarkingDemonstration Plants of the Iron and Steel Industry asan opportunity to benchmark against the national energyefficiency benchmarking in the processes, and activelybuilds the ultimate energy efficiency operation system,as a strategic tool for realizing the goal of "dual-carbon",to promote the improvement of energy efficiency of thewhole process. The company was awarded the honorarytitle of "Advanced Group in Organizing and Promoting theThree-Year Action of Energy Efficiency Benchmarkingfor the Iron and Steel industry Ultimate Energy Ef?ciencyProject in 2023".

Application of Energy Conservation TechnologiesShougang Co. takes the T50 technology list issued by China Iron and Steel Industry Association as a guide,promotes the application of mature and advanced energy conservation technologies, and carries out special actionsfor energy conservation and consumption reduction in key processes, so as to improve the efficiency of energyutilization and reduce the emission of pollutants.

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Advancing ultimate energy e?ciency in depth

Integration of industry,studies, research andutilizationIntegration and promotionof industry, studies, researchand utilization: integrationof enterprises and society,collaborating with industryassociations, colleges andinstitutes to jointly tackleenergy conservation andcarbon-reducing scientificresearch projects; playinga leading role in standardformulation, and participatingin the formulation of energyconservation, low-carbonand environmental protectionstandards.

Optimizing and improving

the energy e?ciency of the

Process connection

Reducing the temperature

drop between processes,

increasing the proportion of

hot charging and hot delivery,

promoting the application of

"one tank to the end" and

MCCR process, and reducing

the interface loss.

Application of advancedenergy conservationtechnologies

Guided by the T50 technologylist, promoting the applicationof mature and advancedenergy conservationtechnologies, and reducing theenergy consumption of keyenergy-consuming processes.

Promoting smart energyconstruction

The smart energy managementsystem of "three streamsand one state", centralizedmodication of energy controlroom, with the expert decision-making system to promotesystematic energy saving.

Improving energy conversione?ciency

Systematically improvingthe efficiency of energyproduction and transmission,and high-efficiency gradientutilization, the in-depthdevelopment and utilizationof waste heat resources,and the high-efciency cyclicutilization of "combustion-heat-electricity-water-salt".

Ultimate Energy Efficiency

In 2023, Qiangang Co. and Jingtang Co. carried out a total of 51 energy conservation and consumption reduction projectsfor each process, challenging the ultimate energy efficiency of the processes and realizing energy conservation andcarbon emission reduction. The energy ef?ciency of each steel production process of the company continued to set newrecords, the energy consumption of coking process was better than the benchmark value, and the energy consumptionof No. 3 blast furnace and converter process reached the benchmark value in stages. In the national key large-scale energy-consuming ironmaking and steelmaking production equipment energy conservation and consumptionbenchmarking competition, Qiangang Co.No. 2 Blast Furnace, Jingtang Co.No. 1 Sinter and No. 5 Converter won the"Champion Furnace"; No. 8 Sinter and Qiangang Co. No. 5 converter and Jingtang Co. No. 1 Blast Furnace were honoredwith the title of "Winning Furnace". Qiangang Co. No.3 blast furnace put into operation the blast air dehumidi?cationproject, and in the rainy season, the moisture content of the blast hot air was stabilized from 16g/m? to 10g/m?, whichcan effectively reduce the CO

emission by 15,836 tonnes/year.

Improvement of Energy Efficiency

Shougang Co. deepened the recycling of complementary energy resources, improvedenergy utilization ef?ciency and reduced pollutant emissions through the introductionof clean energy and environmental protection technologies, and continued to carryout technological research and development on solid waste allocation and addition,furnace top gas recycling process and oil purification and recycling. During thereporting period, the company's energy recovery and conversion utilization ef?ciencywas significantly improved, with the self-generation rate of secondary energyreaching 48.56%, an increase of 2.13% year-on-year.Qiangang Co. No.7 air compressor station was identi?ed by authoritative third-party testing organization, and the efficiency of power transmission reached58%, exceeding the 55% standard line for first level energy efficiency, listingthe first air compressor station in the national iron and steel industry thatcomplies with the first-class energy efficiency standard. Three combined cyclepower plant(CCPP) were built, and the 150MW CCPP became the state certi?ed

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Coking process energy consumption reached the

benchmark value (kg standard coal/tonne)

Energy consumption of selected blast furnace processes

reached benchmark values (kg standard coal/tonne)

The self-generation rate ofsecondary energy

48.56%

An increase of

2.13%

year-on-yearThe e?ciency of powertransmission

58%

Case:Qiangang Co. No.7 air compressor station was awarded " Class A Energy EfficiencyCompressed Air Station"Qiangang Co. No.7 air compressor station adoptshigh-efficiency centrifugal air compressor and energyconservation rotary drum type compression heat dryerto realize zero air consumption, and the energyconsumption per 1,000 cubic meter of wind is reducedby 0.81kWh, with an annual energy conservation of1,430,000kWh. After identi?cation by third-party testing organization, the actual power transmission ef?ciency ofair compressor reached 58%, which is more than 55% of the standard line of Class A energy ef?ciency. ShougangCo. was awarded as "Class A Energy Ef?ciency Compressed Air Station" by China General Machinery IndustryAssociation, and became the ?rst air compressor station in the iron and steel industry in China that meets theClass A energy ef?ciency standard.

44 45

Jingtang Co., a subsidiary of ShougangCo., has significantly enhanced itssustainability by implementing variousinnovative projects. These include theadvanced utilization of waste heatfrom multiple heating furnaces in hotrolling and plate lines, the introductionof new sintering waste heat powergeneration systems, and theapplication of vacuum phase transitiontechnology for reclaiming waste heatfrom blast furnace slag flushing water. Through these initiatives, JingtangCo. has increased its annual steam output by 235,600 tonnes and its powergeneration capacity by 200 million kWh, leading to a reduction of approximately220,000 tonnes in CO

emissions annually. Addressing the issue of substantialheat loss associated with traditional insulation materials, Jingtang Co. hasembraced composite insulation layer technology, significantly reducing heatloss compared to traditional insulation materials.

Jingtang Co. secondaryenergy self-generation rate

50.08%

Exceeding50%for the?rst

Increased annual steamoutput by

235,600

tonnesPower generation capacity

million kWhCO

emissions reduction of220,000tonnesannually

voluntary emission reduction project (CCER) of Chinese iron and steelenterprises, with remarkable energy conservation and carbon emissionreduction demonstration effect. The waste heat of blast furnace slagflushing water is fully recovered and utilized for heating in the heatingseason and preheating of industrial waste heat boiler desalination water inthe non-heating season.Jingtang Co. continues to strengthen the technology R&D of complementaryenergy depth recovery and comprehensive utilization, promotes the energygradient utilization, secondary energy self-generation rate of 50.08%,exceeding 50% for the ?rst time, the energy utilization ef?ciency to a newlevel, per tonnes of steel converter gas recovery reached a record high of120m

/t. By utilizing the waste heat of the plant and exchanging energy forresources, Jingtang Co. has built a seawater desalination project with adaily output of 95,000 tonnes, and researched and developed the technologyof "hydroelectricity symbiosis" and "thermal film coupling" to form theworld's ?rst "combustion-heat-electricity-water-salt" ?ve-effect integratedhigh-ef?ciency recycling system, which realizes the deep utilization of low-temperature waste heat. In 2023, the project won the 11th Mother RiverAward for Green Projects.

Improvement of Ironmaking-steelmaking Connection Energy Efficiency

The company hot charging and hot delivery rate

continuously rising (%)

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Case: Qiangang Co. hot metal temperature controlling realized "6&9" targetThe turnover rate of torpedo car of Qiangang Co. is 6.3 times/day, and the temperature drop of hot metal is

89.8℃, which realizes the target of "6&9" of hot metal temperature control and reaches the leading level

in the industry. Shougang Co. has been focusing on hot metal temperature drop repeatedly carried outtechnical innovation to drive the overall innovation, with the " critical step " through the ultimate energyefficiency, solving ultra-low cost of difficulties and pain points, empowered the enterprise green low-carbon development. Since 2020, the hot metal temperature drop has declined for four consecutive times,with a drop of 42%; the turnover rate of torpedo cars has risen for four consecutive times, with an increaseof about 125%, and CO

emissions can be effectively reduced by 40,200 tonnes/year.

Building Smart EnergyShougang Co. continuously improves the level of intelligent and digitalized management and control of energymanagement, further improves the level of collaborative management, accelerates the construction of smartenergy, and promotes the re?ned management of energy in an all-round way.Qiangang Co. is promoting the application of " Energy ?ows, Manufacturing ?ow, Value Stream and device status " smartenergy management system, and completed the air separation centralized control station construction,company hasrealized the main substation unmanned, as well as is accelerating and advance the construction of gas centralizedcontrol station, power system remote control automation system, to promote the realization of the energy mediumpipeline network and power generation and supply system centralized control. By adopting an advanced expert decision-making system, Jingtang Co. establishes a balanced prediction to construct a transmission and distribution modelin advance, a single-system cost-optimization model and a multi-media synergistic optimization model to guide theproduction and realize the system's energy conservation. Relying on the construction of the "Lighthouse Factory" project,Cold-R Co. has set up a digital energy management system, and developed functions such as online energy consumptionmonitoring, intelligent scheduling of electric power, and energy analysis cockpit.

Shougang Co. strictly control the "2 temperatures values",the hot mteal temperature drop from ironmaking tosteelmaking continues to reduce, and the proportion of hotcharging and hot delivery billet is steadily increasing. Thetemperature drop of hot metal in Qiangang Co. is 96.5°C,including 89.8°C in November, which is a new record; therate of hot charging and hot delivery has increased from46% in 2019 to 73.5% in 2023, and the rate of hot chargingand hot delivery in Jingtang Co. has increased from 41% in2019 to 60.2% in 2023.

46 47

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Water Resource Management Water Resources Protection

Shougang Co. actively promotes the protection of water sources, and in accordance with theWater Law of thePeople's Republic of China, the Law of the People's Republic of China on Prevention and Control of Water Pollutionand other laws and regulations, and in combination with the actual situation of the enterprise, Shougang Co. hasformulated theSystem for the Protection of Water Sources, standardized the management of water sources, andsafeguarded the security of the water supply for the company's production and life. Water Resources Utilization

The company adheres to the water-saving ideal of "less use of fresh water, full treatment and reduce wastewaterdischarge ", insists on reasonable development, efficient utilization, comprehensive treatment and scientificmanagement of water resources, and improves the water ef?ciency year by year to meet the standard of leadingvalue of intergrating factory. It has successively won the Provincial Water-saving Demonstration Enterprise, theNational Water Ef?ciency Leading Enterprise, the Provincial Water-saving Benchmark Enterprise, and has beenidentified by the Ministry of Industry and Information Technology as the Demonstration Enterprise of IndustrialWastewater Recycling.During the reporting period, the company, as a National Water Ef?ciency Leading Enterprise and DemonstrationEnterprise of Industrial Wastewater Recycling, was invited to participate in the 18th World Water ResourcesConference organized by the Ministry of Water Resources of the People's Republic of China and the InternationalWater Resources Institute. The companydemonstrated the technologies of"industrial recycled water and wastewatergradient utilization", " special wastewaterfrom cold rolling area, coking area andother areas in-depth treatment and zerodischarge" and "low-cost and stableutilization of highly saline water", etc.The company will continue to devote itselfto the R&D and application of industrialwater resources utilization technologiesand actively promote the application ofwater saving and reduction emissiontechnologies.In 2023, the water reuse rate was maintainedat 98.73%.

Smart Energy Management System

Water reuse rate remained high (%)

Case: Qiangang Co. was honored as a provincial water-saving benchmarkenterprise for the year 2023In December 2023, Hebei Province Department of Industry and Information Technology issued theNoticeof Hebei Province Water Resources Department on the Creation of Water-saving Enterprises (Parks) in2023, and Qiangang Co. was honored with the title of "Provincial Water-saving Enterprises in 2023" and"Provincial Water-saving Benchmark Enterprises in 2023".Qiangang Co. firmly insists on"manufacturing + service" strategy, in the field of water resourcesutilization, the company has been adhering to the ideal of " less use of fresh water, full treatment andreduce wastewater discharge " and the pursuit of the ultimate "zero discharge", insisting on the rationaldevelopment, efficient utilization, comprehensive management and scientific management of waterresources, and has achieved remarkable results in water-saving.

In terms of water-saving management, the company implements source reduction, cascadeutilization, and the application of new technologies.??Adopting the technologies of coke dry quenching for power generation, dry dedusting of blast furnacegas and converter gas to save water, save energy and generate more power, coke dry quenchingfor power generation reduces CO

emission by about 550,000 tonnes per year, and dry dedusting ofconverter gas saves one-third of water;??The application of heating furnace vaporization technology and closed loop water system saves waterup to 90%;??Construction of comprehensive circulating water pumping station, realizing serial utilization of thecirculating water, with a water recycling utilization rate of 99%;??Adopting zero-discharge technology for highly saline water, desalinating the concentrated water ofreverse osmosis, improving the utilization rate of water resources, and realizing the "zero" dischargeof highly saline water, of which "Blast Furnace Slag Flushing Water Quality Stabilizing Technology" haswon the national patent;??Implementation of zero discharge technology for coking wastewater, adopting "Fenton oxidation +?occulation and precipitation + multi-media + electrodialysis + ultra?ltration + reverse osmosis" watertreatment process to realize near-zero discharge of coking wastewater.In terms of water management, the process management of water consumption index is implemented.??Establishment of water metering system and control center to realize the comprehensive managementand control of water system;??Development of energy secondary management system to realize the consumption daily closing dailysettlement;??Timely and accurately grasp the consumption status of the water system, and provide early warning ofwater consumption;??Develop water quality control standards for circulating water system, and promote the economicoperation of water system;??Informatization management of water quality testing data to improve the ef?ciency and accuracy of the watersystem analysis, and re?ned management of water quality to promote both water-saving and cost reduction.Through the above measures, the water utilization ef?ciency of Qiangang Co. increased year by year, andthe total water use and water consumption index decreased year by year; The water reuse rate is 99%,reaching the domestic advanced level.

48 49

Wastewater DischargeShougang Co. pursues very low emission, Qiangang Co. establishes comprehensive sewage treatment station andreclaimed water deep treatment station, and the wastewater from the production process is recycled; Jingtang Co.establishes comprehensive sewage treatment station, and hooks up comprehensive sewage ef?uent with desalinateddemineralized water to produce recycled water for recycling, so as to realize the resource utilization of wastewater. In2023, the company discharged a total of 373,700 tonnes of wastewater, which were signi?cantly lower than the permittedemissions.

Low-carbon Development

Climate Risk and Opportunity Identi?cationClimate change is a global issue of community with a shared future of mankind and is a major challenge forsustainable development. The steel industry is crucial for achieving carbon peak and carbon neutrality in society.Shougang Co. actively responds to climate change and continuously standardizes the management of climategovernance. Based on national laws and regulations and relevant requirements, Shougang Co. has formulatedsystems such asClimate Governance Management System in combination with the actual situation of the company.Shougang Co. actively identifies climate change risks and opportunities, combines its own advantages and thedevelopment stage and characteristics of the industry, actively integrates into China's "dual carbon" strategiclayout, vigorously promotes energy conservation and carbon reduction work, and continuously promotes the greenand low-carbon development of the company.

Risk CategoryRisk ParameterPotential In?uencePhysicalRisk

Acute risk

The severity and frequencyof extreme weather events(such as typhoons, ?oods,etc.) increase

Jingtang Co. is located on the coast of Bohai Sea andexperiences 1-2 severe typhoons and extreme weatherevents each year. Especially in recent years, there has beena sudden increase in global extreme weather events, whichmay lead to impairment or loss of physical assets, as wellas other potential economic losses.

TransformationRisk

Policy,Laws andregulations

Policy constraints, carbonpricing mechanism andcosts

With the implementation of energy-conservation andemission reduction policies in the steel industry, as well asthe implementation of environmental and carbon-relatedlaws and regulations, the company will face rising carbonprices and carbon compliance costs, restrictions on coaluse, and other energy transition policies, which will leadto corresponding increases in investment and operatingcosts, a?ecting pro?t.Carbon Tari?

The European Union Commission announced thelaunch of the world's first "Carbon Border AdjustmentMechanism" plan, imposing tax on imported carboncontaining products including steel and cement, whichwill restrain the company's exports of certain products anda?ect pro?t.

Technologyand cost

Low-carbon technologytransformation

In response to China's 30-60 Decarbonization Goal and toachieve the company's "dual carbon" goals, significantinvestments will be required in the future for theresearch and development or application of low-carbonsteelmaking technologies. The research and developmentprocess involves uncertainties.Transformation cost

During the low-carbon transformation process, thecompany will increase the use of renewable energy, newenergy, and other energy conservation and environmentalprotection technologies. The application and investmentin low-carbon steelmaking technologies will lead to anincrease in the company's research and developmentcosts and the risk of value loss of existing ?xed assets.

Market

Increasing demand forgreen and low-carbonproducts

With the deep adjustment period of domestic steelmarkets and the promotion of the green and low-carbondevelopment trend throughout the industry chain, themarket demand for green and low-carbon steel productswill significantly increase. The industry competition willbecome more intense, and if the greenization progressis too slow, it may lead to a decrease in the company'smarket share.Rising raw material costs

Prices of energy and other resources will increase due tothe impact of climate change, which will in turn a?ect theprocurement costs of fuel and raw materials, resulting inincreased costs and other risks.Reputation

Concerns of stakeholdersregarding climate changemeasures

Investors and other stakeholders, as well as the public,will pay more attention to the company's response toclimate change measures, and may even consider it akey factor in evaluating the company's performance. Thiscould potentially pose reputation risks to the company,and resources need to be invested to strengthen carbonmanagement in order to meet their expectations.

Risk identification and influence

Climate change is shaping and transforming the models of social and economic development, presenting distinctopportunities for the sustainable growth of businesses. Upon analyzing the market and industry landscape, inalignment with our company's unique traits and strategic outlook, we have pinpointed the following opportunities:

Product Service:

We are dedicated to the innovation and development of green products, such as non-orientedelectrical steel designed for new energy vehicles and high-performance oriented electrical steel, catering to thegrowing market and consumer demand for low-carbon goods and services.Energy Efficiency:

By continuously refining our process technologies, fully leveraging waste heat and energy,researching and applying cutting-edge energy- conservation technologies, and employing big data and intelligentsystems, we aim to construct an ef?cient smart energy management framework. This will enhance our resourceand energy utilization, advance our efforts in energy conservation and carbon emission reduction, and minimizeoperational costs.

50 51

Low-Carbon StrategyShougang Co. formally released the low-carbon action plan in July 2023, specifying the low-carbon strategicobjectives and implementation path. The company takes comprehensive green transformation as the goal, green,low-carbon and ef?cient utilization of energy resources as the key, technological innovation as the driving force,and creates a integrated factory "low-carbon product line" as the near-term direction, plans to introduce electricfurnace steelmaking as the near- to medium-term direction, and promotes carbon reduction with the large-scaleapplication of green hydrogen and green electricity as the carrier. With the medium- long-term planning directionof promoting carbon reduction through the large-scale application of green hydrogen and green electricity,the company will strive to optimize the production structure, process structure, energy structure, logistics andtransportation structure, further strengthen the responsibility of SOEs, and unswervingly take the road of green,low-carbon and high-quality development.

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In 2025, the total CO

emissions strive to

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emission intensity

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In 2035, the total CO

emissions are reduced

by 30% from the peak

From 2050 to 2060,

strive to achievecarbon neutrality

Energy Sources:

We are committed to increasing the utilization of clean and low-carbon energy sources,transitioning away from traditional high-carbon options. This includes expanding our photovoltaic power generationcapabilities and augmenting the share of green electricity procured from external providers.

Carbon Management and Trading:

Establishing a robust carbon emission management platform is another focalarea. By improving our carbon emission assessment system and actively engaging in carbon credit trading, we areintensifying our carbon management practices.

2,786,781

GHG Emissions(Scope 1)GHG Emissions (Scope 2)

41,192,512

The company's GHG emissions in 2023

(Tonnes of carbon dioxide equivalent)

GHG Emissions

Our commitment to green manufacturing has beenunwavering. We have invested in the research anddevelopment of durable, high-strength, lightweight,and highly corrosion-resistant green and low-carbon products. Through the innovation of low-carbon technologies and the active exploration andutilization of renewable energy sources, we havecomprehensively advanced our energy conservationand carbon reduction initiatives.

Shougang Co. carbon reduction technology route

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Route 1 :

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Route 2 :

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Route 3 :

Collaborativecarbon reduction

Route 4:

Social carbonreduction

Develop low-carbon smelting furnace burdenDevelop e?cient utilization technologies for recycled steel materialsDevelop e?cient recycling technologies for secondary resourcesPromote low-carbon metallurgical technology innovation orderly

Construct the ultimate energy e?ciency operation systemPromote electri?cation of energy utilizationDevelop and apply clean energyConstruct an smart energy management and control systemIndustry chains synergize to reduce carbon emissionsDevelop waste resourceization and productization technologiesResearch and development of CO

capture and resource utilizationtechnologyR&D and application steel and chemical co-generation technologies

Establish product life cycle control systemDevelop high-performance and long-service performance low-carbonproducts.Promote synergistic carbon reduction in downstream industriesConstruct green and low-carbon development concepts and models

52 53

Green and Low-carbon PracticeShougang Co. attaches importance to the sustainable development of the industrial chain from the perspective ofthe whole life cycle, and has set up the Green Manufacturing Committee, which consists of six specialized groups:

Green Supply Chain, Solid Waste Resource Recycling, Energy Conservation Management, Environmental ProtectionEnhancement, Low-Carbon Management, and Green Park. With the goal of promoting the green development ofthe whole process of iron and steel manufacturing and the whole life cycle of products, the committee focuses onpromoting the green supply chain, recycling of solid waste resources, energy conservation, environmental protection,low carbon, and the construction of green parks, boosting and supporting the company's high-quality development,promoting the harmonious progress of upstream and downstream industries, reducing carbon emissions, andcontributing to the implementation of the "dual-carbon" goal and the mitigation of global climate change.Carbon Management & LCAShougang Co. actively promoted low-carbon management, improved the construction of carbon data managementinformationization platform, basically completed the construction of the company's carbon management platform, andwas shortlisted as a pilot demonstration unit for the construction of carbon management system in Hebei Province.The company has deepened the research on LCA system, adhered to the ideal of green development in product R&Dand design, and established a complete product life cycle evaluation system and data collection platform based on themethodology of full life cycle evaluation. The company actively promotes the implementation of the Low Carbon ActionPlan, and focuses on building a special line of low carbon products to meet the carbon reduction needs of key customers.Promoting and implementing the lowcarbon technology validation program forthe iron and steel industry of MIIT. Duringthe reporting period, we completed theinstallation of all hardware equipmentand software development, and passedthe on-site technology validation audit byMIIT audit experts and the acceptance ofthe technical review team 's technologyacceptance. We have formed a green low-carbon technology library and a low-carbontechnology validation program to provideone-stop services of carbon peak emissionsand carbon neutrality for iron and steelenterprises.

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Blast furnace pellet ratio enhancement plan

Establish Low-carbon Ironmaking ProcessJingtang Co. has established a 10-million-tonne low-carbon ironmakingprocess, reducing carbon emissions by 140kg per tonne of iron, with aconsiderable amount of carbon emission reduction based on a productioncapacity of 13.5 million tonnes.High oxygen enrichment ironmaking.The company builds the largest singleunit of pressure swing adsorption oxygen production equipment (4*15000Nm

/h)in China, and researches and develops the composite oxygen supply technologyfor blast furnace with the core of variable pressure adsorption oxygenproduction and deep cooling oxygen production, which creates a new mode ofcomposite oxygen supply for large blast furnace in the industry. At present, theoxygen enrichment rate of the three blast furnaces exceeds 8% and reachesup to 8.50%, which is at the leading level in the oxygen enrichment of the blastfurnaces above 4000m? and strongly promotes the improvement of productionand reduction of consumption.Large proportion pellet ironmaking technology in extra large Blast Furnace.The three blast furnaces of Jingtang Co. with 55% pellet ore are running stably, andthe carbon emissions can be reduced by 80kg per tonne of iron. No.1 Blast FurnaceUtilization Coef?cient and Coke Ratio are ranked the ?rst among blast furnaces ofthe same level in China, which not only achieves high ef?ciency, but also realizeslow consumption.

Carrying out EPD release and organizational carbon certification.In January 2023, EPDs of hot-rolled steelsheets and strips of Qiangang Co. and Jingtang Co. were officially released on the EPD platform of the ironand steel industry, and in December 2023, EPDs of hot-dip zinc-aluminum-magnesium(low aluminum) alloycoated steel sheets and strips of Jingtang Co. and steel sheets and strips of Cold-R Co. were of?cially released.Organizing each base to carry out organizational carbon certi?cation work, we successively completed the signingof certi?cation agreement, on-site emission source investigation, data collection, data accounting, external audit,recti?cation of problematic items, etc. In June 2023, the company received GHG veri?cation certi?cates from SGSregarding each base.

Carbon emissionsreduction:

kg per tonne of iron

Blast furnace pellet ratio

55%

The oxygen enrichmentrate of the blastfurnaces exceeds8%

54 55

Steelmaking "3-De" (decarbonization, dephosphorization,desulfurization) process).Utilizing the advantages of the converterduplex melting process of the all "3-De" clean steel production platform,the company has developed ef?cient clean steel steelmaking technologiesfor converter, re?ning and continuous casting by improving heat utilizationefficiency through the development of efficient heat supplementation ofconverter, secondary combustion and other technologies, lowering thetapping temperature of the converter, and at the same time, realizing thestable control of nitrogen, sulphur, phosphorus and residual elements.High scrap ratio steelmaking:

Giving full play to the advantages ofthe converter process, we have organized several large scrap ratio testsfor automotive sheet, pickled sheet, household appliance sheet and hotrolled sheet products, and the scrap ratio of the converter process canbe steadily increased to 50%, realizing continuous production of multi-furnace continuous casting, and possessing the capability of productionof products that can reduce carbon emission by more than 40%. In July2023, the steelmaking process successfully carried out experiments oncarbon reduction products with higher scrap ratio, and the scrap ratio ofsingle process of converter was increased to 50%.

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R&D of Low-carbon TechnologyShougang Co. continues to conduct in-depth research and developmentof low-carbon process technology, strengthens key and breakthroughlow-carbon technology research, vigorously promotes the applicationof advanced and applicable green and low-carbon technology, andstrengthens the core position of technological innovation in the low-carbon development of the enterprise and the role of "the largestincrement".The company comprehensively utilizing low-carbon technology and low-carbon resource advantages, and focuses on creating a special line oflow-carbon products for intergrating factory, reducing the intensity ofcarbon emissions per unit of product by 30% to 50%, and at the sametime, it has the ability to meet the higher carbon reduction requirementsof key customers in advance.

Reduction route of rotary kiln "granular coal injecting + fan on the wrong side":

Developed the reductionroute of rotary kiln "granular coal injecting +fan on the wrong side", and the metallization rate of kiln slag wasincreased from 60% to 90%;Oxygen-rich combustion carbon capture technology for metallurgical furnaces:

Promoting the research ofoxygen-rich combustion carbon capture technology for metallurgical furnaces, and realizing the combustion testunder 40% oxygen-rich ratio for the ?rst time in the industry.

Low-carbon sintering process technology:

sintering thick material layer + composite steam injection + fluegas circulation coupling energy conservation carbon reduction technology, sintering process energy consumptionreduced by more than 11%, carbon emissions reduced by more than 9%.Carbon dioxide capture and utilization technology:

cooperating with University of Science and TechnologyBeijing, the company has developed the technology of lime kiln CO

capture and its application in steelmakingconverter process, and established a demonstration unit of 50,000 tonnes of lime kiln carbon capture and itsapplication in 300t converter in Jingtang Co., and the purity of CO

after capture has reached 99.8%, which is higherthan the industry standard of 99%.

Low carbon production route planning for blast furnace/converter processes

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Develop New Energy Sources

The company actively promote the utilization of clean energy, Qiangang Co., Cold-R Co. and other sectors accordingto local conditions, scienti?c layout, actively develop and utilize renewable energy, built a series of rooftop distributedphotovoltaic power generation facilities, in particular, the Cold-R Co. built the then Beijing's largest distributedphotovoltaic power generation demonstration project, with an installed capacity of 8.34MW. Qiangang Co. built thefirst large-scale green energy demonstration project in Qian'an area, energy-conservation and carbon reductiondemonstration effect is obvious, the two units to further making full use of the available rooftop resources in thefactory, and actively plan the construction of the second phase of photovoltaic power generation projects. 2023 PVpower generation of 15,320MWh, for the enterprise to win more social bene?ts and environmental protection bene?ts.

Shougang Co.'s photovoltaic power generation has continued to increase in recent years (MWh)

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Case: Qiangang Co. Photovoltaic Power Generation Project to start constructionIn September 2023, the construction of 35.6MW distributed photovoltaic power generation project ofQiangang Co. was launched, which was mainly divided into two parts: combined with the high-end heattreatment project of Zhixin Co. to build BIPV mode distributed photovoltaic power generation project, witha planned installed capacity of 5.6MW, an average annual generating capacity of about 6.22 million kWh,and a 25-year generating capacity of about 155.71 million kWh; to open the whole area of Qiangang Co. todevelop distributed photovoltaic power generation projects using a combination of BIPV and BAPV modes,with a planned installed capacity of 30MW, an average annual power generation capacity of about 32.8million kWh, and a 25-year power generation capacity of about 821.02 million kWh.

56 57

The company actively carriedout market-based green powertrading, with 916 million kWhof market-based green powertraded in 2023, an increase of

27.4% from 2022. In addition,

the company actively promotedthe procurement of greencerti?cates. During the reportingperiod, Qiangang Co. procured45,000 green certificates andJingtang Co. procured 60,000green certi?cates.

Green ProductsShougang Co. is dedicated to develop high strength lightweight, long-life, and highly corrosion-resistant greenproducts, and continues to enhance the green and low-carbon competitiveness of its products. It has developed anumber of green and low-carbon products such as high-ef?ciency electrical steel, automotive lightweight high-strength steel, high-strength steel for household appliances, and long-life hot-dip zinc-aluminum-magnesium(lowaluminum) alloy coated steel sheet for household appliance, etc., which promotes the synergistic reduction ofcarbon emissions of the downstream industries such as automobiles, machinery, household appliances, andconstructions, and assists the downstream market achieving green upgrading.

Green power transactions in the last two years (100 million kWh)滸滹滺滻滼滽滾滶滵

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Cold Rolled Automotive SheetLow-carbon automotive sheet was successfully released, compared with the conventional process products toreduce carbon emission by more than 30%. Through high-strength thinning and optimized material selection, itcan achieve overall body-in-white weight reduction of about 10%, calculated on the basis of body-in-white weight of450kg, it can reduce weight by 45kg.

Electrical Steelthe company's electrical steel products help the industrial chain achieving energy conservation and carbonemission reduction, annual power savings of 3.5 billion kWh for the three major areas of home appliances, newenergy and transformers, assisting downstream enterprises reducing CO

emissions of 4 million tonnes / year.

In 2023, the specialized production line of electrical steelfor new energy vehicle adopted the world's ?rst six-standrolling mill, which increased the level of transversethickness difference control by 20%. ESW1021 products,which was launched in September 2023, were designedto meet the future needs of high power, high speed andhigh ef?ciency of electric motors, solving the problem ofhigh alloy and high magnetic induction, and improvingthe manufacturability of processed products and theperformance of new energy vehicles in all aspectswith extremely low iron loss and ultra-high magneticinduction. Non-oriented electrical steel products fornew energy vehicles were awarded as "Green DesignProducts", and can reduce CO

emissions by about 2.08 million tonnes per year.High Magnetic Susceptibility Oriented Electrical SteelAs the world's fourth enterprises of can produce 100% low-temperature high magnetic induction orientedelectrical steel , the company has an annual output of 300,000 tonnes of high-performance oriented electrical steel

Power transmission and transformation ?eld, 1.03 million tonnes/yearHousehold appliances ?eld, 2.30 million tonnes/yearNew energy ?eld, 153,000 tonnes/year

Specialized Electrical Steel for New Energy Vehicles

The company closely follows the development trend of new energy vehicles with long endurance, strong powerand light weight, adheres to the product oriented of "high-end and ef?cient, green and environmentally friendly",and continuously promotes the iterative upgrading of soft magnetic materials for new energy vehicles, and hasdeveloped more than 20 types of special electrical steel products for new energy vehicles in 6 series, of which 6products have made their global debut.

The ?rst high-performance oriented electrical steel productionline in China has been completed and put into operation

58 59

production capacity, formed a high magnetic induction, refinement ofmagnetic domains, low noise, bottomless, low excitation, intermediatefrequency six series of more than 60 products, to achieve the global debutof four products. Among them, the market share of 0.20mm thick andbelow thin speci?cation high magnetic induction oriented electrical steelhas been the ?rst in China for six consecutive years, and we continue tobuild an advantageous product cluster with high ef?ciency and low ironloss.On April 19, 2023, high-performance oriented electrical steel productionline was put into production in Zhixin Electromagnetism, with a newcapacity of 90,000 tonnes of high-performance oriented electrical steel,which, after being applied to energy-ef?cient transformers, is expected tosave 490 million kWh of electricity annually and reduce CO

emission by480,000 tonnes.In September, the high-performance oriented electrical steel productsused in converter transformers for UHV DC project passed the expertevaluation, and the series of products reached the international leadinglevel of the same kind of products, realizing the full coverage of UHV ACand DC applications; the oriented electrical steel was awarded the "greendesign products".

CO

emission reduction:y480,000tonnes

Expected to save

million kWh of electricity annually

New capacity of90,000tonnes of high-performanceoriented electrical steel

Case: Mass production of advanced hydrogen-doped pipeline steelShougang Co. developed and produced advanced hydrogen-doped pipeline steel which is successfullyapplied to Baotou - Linhe gas pipeline project after being processed into steel pipes by the user, becomingthe first mass production enterprise achieving of hydrogen-doped pipeline steel in China, laying thefoundation for China's long-distance, high-pressure hydrogen transportation pipeline project applications.Natural gas hydrogen-doped pipeline project between the Baotou-Linhe is the first high pressure, highsteel grade, long distance, large diameter hydrogen-doped pipeline project in China, with pipeline length ofabout 235km and design pressure of 6.3MPa, which can provide support for adjusting the energy structureof the areas along the route and realize " carbon peak " and "carbon neutrality". In the project, Huayou SteelPipe used plates produced by Shougang Co. to manufacture Ф457 × 8.8mm X52MS spiral welded pipe. Thecompany developed and produced high grade hydrogen-doped transportation pipeline steel, which met therequirement of 10% hydrogen doping ratio of the project design, and was in the leading position in China.

Biodiversity

Emphasizing Biodiversity

Shougang Co. fully understands the importance ofbiodiversity to the company, strictly complies withnational and local laws and regulations, and continuesto pay attention to the harmonious development of thefactory environment and the surrounding ecologicalenvironment. During the project design phase,biodiversity conservation and land use assessment arecarried out in accordance with relevant requirements.During the project operation phase, the surroundingecological environment is continuously monitored.Active measures are also taken to protect biodiversity,reduce the impact of production and operation on theecological environment, avoid disturbance to wildlifehabitats, and prevent soil erosion and deforestation.Jingtang Co. and Qiangang Co. continued to strengthen the greening of their factories, selecting suitable plantspecies according to soil and climate conditions while paying attention to the diversity of factories area, and settingup a new image of iron and steel enterprises building forest-like factories. By the end of 2023, the greening areaof Jingtang Co.'s factories reached 6 million square meters, with 100% greening rate and 49% greening coverage,while Qiangang Co.'s factories had a greening area of about 1,215,000 square meters, with 8 key landscapes, morethan 30,000 trees of more than 70 species, and over 1.5 million shrubs of more than 110 species, with a greeningcoverage rate of 46.6%, and 100% of the available green space greened, forming a green natural landscape of"?owers in three seasons, evergreen in four seasons" and "forest in the factory, factory in the forest". As the paceof the construction of "forest-style factory" continues to follow, the factory inhabited by magpies, pheasants, hares,white wagtails and other state-protected animals. Cold-R Co. has been actively rescuing wild animals, and duringthe reporting period, it was awarded as an excellent nature protection supporter by Beijing Wildlife Rescue Center.

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EmployeeProtection62TalentDevelopment70HealthandSafety72QualityAssurance77CustomerService80SupplyChainManagement84

Society:

Creating a BetterLife Together (S)

62 63

Employee ProtectionTalent is the first resource. Talent is a strong guarantee for Shougang Co. to realize the development vision of"becoming a listed steel company with world competitiveness and in?uence". The company maintains the legitimaterights and interests of employees with rights and interests management, democratic management and demandmanagement, establishes a perfect and scientific salary and benefit system; cares for the physical and mentalhealth of employees with health project, heartwarming project, culture and sports project, continuously improvesthe working and living environment of the employees, attaches importance to the all-around development of theemployees, and endeavors to promote the realization of the employees' personal value and the implementation ofthe enterprise's sustainable development at the same time.

Rights and Interests Management and ProtectionThe labor contractsigning rate100%

The collectiveagreement coveragerate100%

Regarding Human RightsShougang Co. strictly follows the requirements of theConstitution of the People'sRepublic of China,Labor Law of the People's Republic of Chinaand other relevantlaws and regulations, respects human rights and equality, formulated ManagementSystem of Labor Contracts and other management rules, continuously improvesthe human resource management system, consciously resists any disregard andinfringement of human rights, and insists on treating employees for differentnationalities, ethnicities, ethnicity, beliefs and cultural backgrounds equally. Weinsist on creating an equal, inclusive and diversi?ed employment environment andsafeguarding the legitimate rights and interests of every employee.As of December 31, 2023, the total number of employees in Shougang Co. is18,226, the labor contract signing rate is 100%, and the collective agreementcoverage rate is 100%.Shougang Co. strictly protects the privacy of its employees. We strengthen monitoringin the recruitment, employment, and promotion processes, establish channels foremployees to appeal to senior management, and eliminate the use of child labor,forced labor, harassment, bullying, intimidation, and other illegal behaviors, resolutelysafeguarding employees' human rights. We have formulated management rulesand measures such as theProhibition of Child Labor Regulations and Child LaborRemediation Control Procedures,Standards for the Protection of Female Workers andMinor Workers,Standards for the Prohibition of Discrimination,Harassment,and Abuse,andStandards for the Prohibition of Forced Laborto ensure fair and equal treatment ofall employees, measures without direct or indirect discrimination against employees inLabour practices, and measures to provide protection and advancement opportunitiesfor vulnerable groups. In 2023, the company did not have any illegal or irregularemployment incidents.

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Employee Structure

Salary and BenefitsThe salary distribution system of Shougang Co. is committed to establishing a sound mechanism for determiningand increasing salaries that is compatible with the labor market and linked to the ef?ciency of the enterprise, andcontinuously optimizing and improving the salary system by promoting the linkage of salary distribution with jobvalue, competence and performance. There was a smooth performance feedback and complaint system.

Basic benefits stipulated by law:

We pay pension, unemployment, work injury, medical care and maternity insurance for ouremployees in strict accordance with the regulations, as well as housing provident fund, with 100% employee coverage.Benefits other than those stipulated by law:

Corporate bene?ts are in various forms, including but not limited to:

holiday bene?ts, birthday bene?ts, enterprise annuity, supplementary pension for retirees, group accident insurance,reimbursement of heating costs , working meals, staff dormitories, shuttle buses and so on.

SalaryPost salary system, annual pension system ina variety of ?exible forms, post salary, positionsalary, merit pay, double pay at the end of theyear, equity incentives, science and technologyawards, management innovation awards, leanimprovement awards, advanced evaluation,three-star awards, etc.

Allowances and subsidies

Academic allowance, position allowance,housing allowance, transportation allowance,communication allowance, patent allowance,relocation subsidy, settlement subsidy,working meal subsidy, high-temperaturesubsidy, highly skilled talents subsidy,etc.

Insurances

7 insurances and 2 funds, health checkups,high-end bachelor apartments, couples'apartments, commuter shuttle bus, heatingexpense reimbursement, gym, basketballgym, badminton gym, table tennis gym, staffrestaurant, community market, kindergarten.

VacationsWeekends day-off, paid vacation, statutory holidays,family visit leave, convalescent leave, maternityleave, marriage leave, breastfeeding leave, etc.In 2023, total number of female employees thatwere entitled to parental leave was 1,904.

Salary System

Welfare

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64 65

Democratic ManagementShougang Co. actively promoted the grass-roots democratic management, continuously improved the grass-rootsdemocratic management system in the basic form of Staff Congress, revised theRegulations of Staff Congress, listenedto the opinions of employees beforehand, and accepted supervision of employees afterward, and ensured theemployees' right to know and participation to the maximum extent. During the reporting period, 2 staff congresseswere held, of which 10 proposals were made by staff representatives, with a 100% response rate to the proposals,and theImplementing Rules for Enterprise Pension of Beijing Shougang Co. was considered and passed; 4 jointmeeting of the heads of staff congresses was held.The company listens to the voices of employees through online and offline communication channels to ensure thatthe most concerned, urgent and difficult issues of the employees arepromptly fed back and solved. To strengthen the openness of factoryaffairs, the company has set up the "Factory Affairs Open Column" andthe "Party Affairs Open Column", and each operation area and teamwill disclose to the employees all the matters involving the employees'immediate interests, such as the distribution of rewards, the selectionof the best, and the daily management; We disclose operation andproduction, party spirit and honesty, labor and personnel, cadreselection and so on. The company guarantees the employees' right toknow, right to participate, express and supervise in the managementof the enterprise, and builds a harmonious labor relationship with theemployees. Demand Management

Shougang Co. is based on "doing practical things and solving difficult problems" for the staff, and has fullycompleted the work of protecting the staff's transportation, meals, accommodation and administrative offices.Adhering to the service workers as the center, the company strengthens the management of the needs of workers,and solves the most concerned, urgent and difficult problems of workers. The company held quarterly staffdemand meetings, collected a total of 302 staff demands, and coordinated the settlement of 35 company-level staffdemands, such as female labor insurance and children's education, to ensure that 100% of the staff demands were100% answered.

Health Project

The company adheres to Xi Jinping's thought of socialism with Chinese characteristics in the new era andGeneral Secretary Xi Jinping's series of important speeches on people's health as the guidance, comprehensivelyimplements the spirit of the report of the 20th CPC National Congress on "Promoting the construction of a healthyChina", and actively implements the strategy of healthy China, establishing the concept of happy work and healthylife, implementing the new way of healthy and scienti?c life for the health plan, optimizing the health environmentto promote the construction of "Healthy Shougang Co.". By health management action, it guides the workersto establish scienti?c health concept, improves the health literacy of the workers, enhances the workers' senseof obtaining, happiness and security, and provides health guarantee for Shougang Co. to construct high-qualitydevelopment foundation.

Case: Employees enjoying health and happiness

Case: "Happiness Jingtang" generally benefits employee and warming service

Vigorously creating a healthy corporate culture: establish the concept of happy work and healthy life,

and lead to build a healthy brand. Strengthen publicity to create a strong healthy cultural atmosphere.Give full play to the role of the New Media Association, strengthen the publicity of "Healthy ShougangCo.", and publicize health concept, knowledge, activities, initiatives and results in a variety of forms, suchas through the intranet, o?cial accounts and video accounts.The Healthy Employee Physical Fitness Advancement Program: The company organizes physicaltesting for employees, and set up physical ?tness progression plans based on scores of 65, 70, 75, 78, 80and above. We also carry out targeted physical exercise to promote employees to improve their physical?tness.Formulating a scienti?c ?tness plan: Combined with theMeasures for the Implementation of ShougangCo.'s Employee Health Care Planand theNotice on the Implementation of the 2023 Employee Health CarePlan, each unit organizes employees to make good use of the health places. Adhering to the principle of"miniaturization, diversi?cation and popularization", ?tness activities, such as "Eight Trigrams Boxing", "Tai Chi Chuan", "Ninth Set of Radio Gymnastics", etc., are carried out in two time slots, from 10:00 to 10:15in the morning and from 15:00 to 15:15 in the afternoon every day so that employees can easily exercisefor ten minutes, work happily for a whole day and live a healthy life for a whole life.Carrying out health checkups for all employees: Carrying out health checkups for all employees: Everyyear, the company organizes and carries out health checkups for all employees, and forms four levelsof health checkup reports for the company, grassroots organizations (departments and offices of theauthorities), operation areas (sections), and working teams, and analyzes and interprets the data of thehealth checkups and the recommendations of the doctors, so as to achieve the goal that each higher levelcan keep track of the health status of the lower levels to ?nd out the problems of early prevention andearly intervention.Creating a "Healthy Home": Health management is closely integrated with the construction of smallhomes for workers, and around the goal of creating a "Healthy Home”, the company purchases learningvideo courseware for workers' families on health knowledge popularization, disease prevention, healthydiet, scienti?c exercise, etc., and holds health knowledge lectures at the grass-roots level; the companyregularly carries out various forms of health knowledge promotion and education activities such as healthlectures, expert consultations, and video teaching.Giving full play to the role of Cultural and Sports Association: the company regularly carries outrecreational and sports activities, stimulates fitness enthusiasm, and makes more employees join theranks of ?tness exercise, communicate with each other in ?tness and exercise activities, learn from eachother, and go to the ?tness and exercise in a more scienti?c and healthier way.

Pilot Application of Employee Healthy Stations in Jingtang Co.: Pilot work of HappinessOperation Department was carried out in the Steelmaking Operation Department and the Energy andEnvironment Department. Relying on 127 workers' individual households, 180 Warming Stations, and3 Workers' Homes, the company guaranteed happy work and comfortable rest for employees, and 15employees' individual households were named by Beijing Municipality.Sending warmth during festivals, providing refreshing coolness during summer and assistingdifficult employees: During the New Year and Spring Festival, leaders visited 1,090 representatives of

model workers and needy employees, and during the Spring Festival, condolences were sent toemployees on the job, with a condolence amount of 514,000 yuan. During the summer, 100,000kilograms of watermelons were delivered to the employees.Carried out the "Donate Love 2023 "fund-raising activities, the employees of the participated in the donation of 10,493 persons, thetotal amount of donations RMB446,000 yuan. Applied for RMB168,400 yuan for 25 employeeswho suffered family property losses due to the rainstorm. Provided 9 cases of special protectionassistance, amounting to RMB 1,182,100 yuan. Handled 141 applications for assistance from BeijingWarmth Fund, Shougang Fund for the Needy and Jingtang Assistance, amounting to 1.4024 millionyuan. Handled 1,173 cases of employees' mutual assistance insurance, with claims amounting toRMB2.1417 million yuan. The summer custodian program for employees' children solved the worriesof 126 families.

Organize employee recuperation: Established two new rest and recuperation routes in 2023 tomeet the diversi?ed needs of the employees, and Complete recuperate organizational work for 1,045Jingtang employees and 272 coking plant employees.Paying attention to the mental health of all employees: The company has organized andcompleted two training courses for resident lecturers, 6 sessions of "one-to-one" mental qualityimprovement, 4 sessions of " Happiness in Jingtang" caring for the workers and other activities,and served more than 13,000 workers in total. Jingtang Co. was awarded the title of "ExcellentDemonstration Unit of Employee Psychological Care Service".

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Heartwarming ProjectAdhering to the people-oriented principles,the company effectively solved the practicaldif?culties of employees. The company conveyedgreetings to 124 needy employees, distribution ofmore than 300,000 yuan of hardship grants; for138 employees to meet the conditions of mutualaid insurance claims for special assistance, thedistribution of nearly 200,000 yuan; organized asurvey of low-income families, for 15 employeesdeclared low-income help condolences of 45,000yuan; saluted 230 model workers and technicalbackbones, 135 expatriate executives, chieftechnical experts and retired cadres; organized adoor-to-door survey of ?ood disaster relief, anddeclared Shougang's relief fund of 57,000 yuanfor 6 severely affected families. The companyorganized summer hosting classes for 151employees to solve their worries; organized staffrest and recuperation activities for a total of 706 employees and their families. The company actively contacted withQian'an Municipal Hospital of Traditional Chinese Medicine to organize and carry out the activity of "Winter DiseaseDog Days plaster" in the factory, with a total of 356 employees and their families participating.We deeply create the characteristic team "Family" culture, and held the "Best Employee Individual Family"evaluation display and "Employee Individual Family" construction achievements sharing meeting. We selected 10"Best Individual Family", 20 "Excellent Individual Family", 20 "Outstanding Individual Family", 6 "Individual Family",and constantly improve the connotation and soft power in individual family construction, to enhance the sense ofownership for the employees, stimulating their enthusiasm, initiative and creativity, allowing them to learn andprogress in the process of the evaluation display.

Promoting the 5+N Psychological Care Action Plan, in 2023, the company organized and carried out the "EmployeeHappiness" assessment, formed 7,985 assessment reports, held three report interpretation sessions, andorganized 15 team counselling and one-on-one interviews with 100 employees. To promote psychological careinto working teams and truly integrate psychology into the daily management of working teams, 3,487 employees?lled out self-help assessment questionnaires on their psychological conditions by scanning the QR code, whichimproved employees' ability to cope with psychological stress and was very meaningful to the good management ofworking teams.We continue to deepen the construction of the psychological care service system for workers and train a team withprofessional skills. 6 people participated in the training of administrators of employee soul station organized bythe Beijing Municipal Federation of Trade Unions, 7 persons participated in the training of employee psychologicalcrisis identification and intervention, 2 persons participated in the training of employee psychological guidancetechniques, and 2 persons participated in the training of employee internal psychological trainers, all of which weresuccessfully completed and certi?cated.

Case: Heroine make new contributions & care for women employees

Select and set up typical female workers to stimulate motivation for struggle: Selected 15 March8 Red-banner pacesetter in Jingtang CO., 10 female workers were selected as Shougang Women'sPacesetters; three groups won Caofeidian Advanced Women Workers Collectives, and three memberswon Caofeidian Advanced Female Employees. The company held an advanced commendationmeeting of "Charming Women's Day - Harmonious Jingtang Family" celebrating " InternationalWomen's Day",and organized Jingtang story female workers special, female workers nail art, yogaactivities, online prize quiz, etc. Through a series of work, the majority of female workers have beeninspired to learn from and catch up with the advanced models.

Carry out the work of female workers and organize marriage and friendship: The company heldthe "Shougang Co. Youth Together" and youth exchanges and dating activities, and jointly organizedthe "Looking for the most beautiful you" single youth dating activities with the Jiayuan datingplatform, and jointly organized the "Steel City, Youth on the Same Road" youth carnival with theCaofeidian Education Bureau.More than 130 employees participated in the activities. The companyprovided opportunities for single youth to expand the social circle.

Case: "Harmonious Team" system construction

Promote the "Harmonious Team"training system intermediatecourses, in 2023, a total of 514sessions were organized, 8,299people attended, receivede?ective feedback on the coursesfrom 7,175 persons. The feedback showed that the satisfaction of the three intermediate courses is

9.72, 9.67 and 9.62 respectively, and the percentage of those who think it is very helpful to their work

and life is 71.29%, 67.18% and 65.62% respectively. A two-day intermediate training on "HarmoniousLeadership" was organized for a total of 120 participants to enhance the comprehensive ability of themanagement of each unit, pay attention to the growth of employees, cultivate a positive mindset,improve work enthusiasm, and promote the healthy and high-quality development of Shougang Co.The "Harmonious Team" Training System Advanced Course Pilot Team Training project was awardedthe Outstanding Psychological Service Promotion Project by the Beijing Federation of Trade Unions(for the third consecutive year). The company was awarded the "Excellent Organization Unit" for theoutstanding performance in organizing the professional skills training for employee psychologicalcare instructors of National Employee Health Promotion Project.Shougang Co. held a special lecture on "Psychological Care for Harmony" in 2023, in which 10employees from the grassroots told about touching stories based on their own experiences. Thesecases are real and vivid, sincere, and further cohesion of the sta?'s emotions, to improve the sta?'smental health literacy, build a happy enterprise, and promote high-quality development, providing apowerful kinetic energy.Shougang Co. is committed to safeguarding the rights of female employees fundamentally, and paying attentionto the vital interests of female employees. Taking into account the characteristics of female employees, we havecarried out activities such as the "Quality Enhancement Project for Female Employees", "Female EmployeesBuilding Up Their Career" and "Female Employee Job Innovation", which have improved the competitiveness offemale workers and employees. The company has purchased an insurance for each female employee againstspecial diseases, and has done a great deal of work in the area of labor protection for female employees.

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Culture and Sports ProjectThe company is closely focused on the construction of enterprise culture, and actively creates conditions to carryout colorful cultural and sports activities. A total of 196 well-designed, diversi?ed, rich in carriers and enjoyablecultural and sports activities were organized to build a stage for the majority of employees to exercise and displaytheir abilities, among whom the Basketball League was opened for online live broadcasting, which was watchedonline by more than 5,500 people and gained more than 140,000 likes.

The company has put into a Staff Bookstore , which has become the main place for employees to read andimprove their cultural literacy, and has taken the development of "Bookish ShougangCo." as the source of culturalconstruction.

2023 "Shougang Sports Cup" Shougang staff basketball game

2023 National Employee Healthy Sports Exhibition Race and the Third Employee Healthy Games of National

New District Economic Development Zone Hi-Tech Zone

The Sixth National Metallurgical Employees' Race Shougang Sub-Match and "Jingtang Cup" 2023 Shougang

Employees' Badminton Games

2023 Shougang Staff Table Tennis Game

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"Star ofShougang Co."

"ExcellentStar of Shougang Co."

"Hope Starof Shougang Co."

Talent Development

Shougang Co. ?rmly establishes the concept that talents are the ?rst resource, and increases the introduction oftalents, strengthens the talent training, use, incentives and competition mechanism, and strives to build a perfecttalent system, and strengthens the advantageous support of talent resources. Attracting TalentsThe company continues to deepen the implementation of the "excellent training plan" recruitment project andactively introduces outstanding graduates. Through the innovation of system and mechanism, the companycontinuously selects middle and high-level professional and technical talents to provide strong human resourcessupport for the company's high-quality development, and in 2023, the company employed 247 new employees.Among them, the company selectively hired 220 university graduates. Career DevelopmentThe company adheres to the strategy of strengthening the enterprise with talents, provides employees with richcareer development opportunities and smooth promotion channels, and broadens their horizons, accumulatesexperience and cultivates composite talents through the rotation program. The company continuously strengthensthe construction of three talent teams, namely, business management talents, professional and technical talents,and skillful operation talents, and makes the growth channels of talent teams' grades unimpeded. In addition,

Employee TrainingContinuous growth of employees is the prerequisite andkey to realize sustainable development of enterprise.Shougang Co. attaches great importance to talentcultivation, oriented to the career development pathof talents, and effectively builds a "four horizontaland three vertical" training system for employees:

horizontally through the four major sequences ofpersonnel in business management, professional andtechnical, skill operation, and collaborative units, andvertically covering three major trainings: job foundation,ability enhancement, and expansion training. ShougangCo. focuses on cultivating a number of compositemanagement talents, leading scienti?c and technologicaltalents, and artisanal skill talents, so as to realize thecommon growth of employees and the company.

Induction training,job skills and safetyeducation for new

employees

Team leadertraining,graduatestraining

Reserve talents

trainingBasic training

Leadership and

quali?cation

training

Middle and seniorlevel sta? training

Training system

the company continuously improves the talent career evaluation and promotion system,implements the management of full work performance accumulation system, and guidesall kinds of talents to realize promotion and growth through accumulation little by little bymean of mechanism reform. At the same time, it strengthens the training and developmentof technology leading talents, cultivates and creates a number of expert teams, and promotesthe construction of strategic talent force echelon.The company strengthens the whole life cycle management of employees' career, andcontinues to promote the "Voyage" program. In 2023, 28 "Voyage" program trainingobjects were rotated and exchanged for learning, which effectively improved the speed ofemployees' success, ratio and retention degree. The company pushed forward the labororganization and management mode of "Big Positions, Big Job Categories", and a numberof compound talents emerged. For example, there were 337 "Star" employees in the HotRolling Department, 176 "all-round duty workers" in the Energy Department, and 63 "all-through talents" in the Cold-R Co.In 2023, the company implemented the "Race" mechanism to optimize the "?rst resource"of talents. 30 persons were recruited to new positions in open competition, effectivelypromoting the matching of personnel. The company improved the talent evaluation system,strictly selected and appointed, incorporated talent management into the Party buildingevaluation system, and combined with the construction of the company's job system andthe structure of technical talents in various occupational ?elds, continuously improved thetalent assessment and evaluation mechanism, enhanced the accuracy and objectivity of theevaluation results, and incentivized 7,095 persons to be promoted. The company organizedthe eighth "Shougang Co. Three Stars" selection, which resulted in the selection of 14 "Starof Shougang Co.", 47 "Excellent Star of Shougang Co." and 43 "Hope Star of ShougangCo.". The company always cares about the growth of its employees, takes various measuresto build a platform for their growth, constantly finds and cultivates reserve talents, andpromotes the common development of the employees and the company.

The company promotes talent enhancing .On the basis ofpromoting mature projects such as "Cyan" Training Program,"Deep Blue Training Camp" training program, Team LeaderTraining, Leading Cadre Lecture, Professor's Forum, SkillCompetition, etc., the company designs, develops and promotes anumber of training programs around different professional ?eldsby relying on the projects.Shougang Co. continues to select model workers, craftsmen,advanced selection and commendation, and selected the 3rdShougang craftsmen (4 persons), Shougang Co. Craftsmen(5persons). The company's electrical steel rolling field ofinnovation leader Xu Houjun was nominated for the "ChineseGood People List" candidates, Jingtang Co., Hot RollingOperations Department Xu Fang won the "National May DayWoman Pacesetter" honorary title. At the same time, thecompany organizes highly skilled personnel to participate in skillcompetitions at all levels, and carries out employee skill trainingand other activities, and encourages employees to continuouslyimprove their skills by building a platform for skill enhancement.In 2023, Qu Erlong, Xing Feng and Sun Yongjun were awardedthe title of "National Iron and Steel Industry Skilled Worker". Thecompany carried out the seventh phase of the "Master Craftsman"program, and selected 50 gold-medal craftsmen, silver-medalcraftsmen, bronze-medal craftsmen and the best operators.

Case: Jingtang Co. built 4 skills training bases

Jingtang Co. builds "one system, multiple bases" practice-oriented, application-oriented, innovative comprehensive trainingsystem, through the construction of virtual simulation trainingsystem, the layout of multiple types of training bases, multi-dimensional integration of the establishment of personnel trainingsystem to meet the needs of skilled personnel skills training.With the core of strengthening the quality ability of employees atwork and the standard of skill level improvement and technicalcompetition requirements, four company-level practical training bases for overhead cranes, welders,electricians and ?tters were established respectively, as well as departmental-level practical training basesfor steelmaking and railroad transportation.In 2023, the training bases organized a total of more than 2,000 person times training and skill competitions,and all kinds of technical and skilled personnel further sorted out the use of large-scale, automated andintelligent equipment on site and operation methods, and the ability to drive the equipment was steadilyimproved.

The employee training coverage rate100%The total duration of employee training1,867,841hoursThe per capital duration of employeetraining

104.19

hours

Case: Shougang Co. held 2023 "Future Craftsman" youth training campIn order to reasonably excavate, develop and cultivate the company'sstrategic high-skilled reserve talent team, to create a complete skilltalent pipeline team and talent supply chain, to meet the demand forhigh-quality development of artisanal and high-quality skilled personnel,the company transferred 45 young technical backbones in the formof full-time training for two and a half months. After 11 weeks of highintensive training, the trainees of the youth training class successfullycompleted all the training courses of the six teaching modules, and theideological pattern, volitional quality and quality and ability have beenfully exercised to achieve a good training effect.

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Healthy and Safety Work Safety ManagementShougang Co. deeply learns and implements the spirit of General Secretary Xi Jinping's important discussions andinstructions on production safety, adheres to the principle of "safety ?rst, put people and life above everything else", establish the safety production committee, strengthen the responsibility system for safety production, promotestandardized safety production procedure, and create safe and stable working environment. During the reportingperiod, the accumulated investment in production safety amounted to RMB 167 million, no major or aboveproduction safety accidents occurred, and the injury rate of one million working hours was 0.Health and Safety Management SystemShougang Co. has set short-term and medium- andlong-term production safety management objectivesthat are in line with the development of the company,and works strictly in accordance with the ISO 45001Occupational Health and Safety System. In 2023,Shougang Co. has organized internal experts to carryout internal audits of the system once, and hired aprofessional organization to carry out external auditsof the system once, so as to continually improve thelevel of safety management through self-checking,self-correction and to build a long-term mechanismfor occupational health and safety management.In 2023, The company passed the occupational healthand safety system and HSE management systemcerti?cation of Classi?cation Society.In order to enhance the level of enterprise safety management, the company set up a safety standardizationmanagement committee, establish and improve the safety standardization management system, realize the safetymanagement systematic, job operation standardization, safeization of equipment and facility design, the workingenvironment customization. Each unit with reference to the national safety production standardization level 1standard to establish and maintain the operation of the safety standardization management system, QiangangCo. rolling unit and Jingtang Co. ironmaking unit, sinter-pellet unit, rolling unit (tinplate department) passed thefirst level of national safety production standardization certification in 2023. We further consolidated the safetyfoundation management, standardized the safety production behavior, improved the safety production conditions,and built a solid safety cornerstone for enterprise development.Intrinsic Safety ManagementShougang Co. takes intrinsic safety management as the key, continuouslyimproves the ability to prevent and resolve safety risks, and comprehensivelypushes forward the modernization of the production safety governance systemand governance capacity. In 2023, we focused on gas, fire, limited space andother difficult, bottleneck problems, in-depth promotion of intrinsic safetymanagement research, the implementation of the furnace and kiln flue COconcentration and ignition device interlocking effectively control the risk ofcombustion and explosion, in order to use high-?ammability materials insteadof low-?ammability to reduce the risk of ?re, the mechanization and automationof the transformation of eliminating the personnel of high-risk operations andother measures were applied, to achieve a number of enhancement of theeffectiveness of reducing the risk, forming advanced experiences that can bereplicated and popularized. Moreover, 76 national patents were declared, andthe pressure interlock between the independently designed and applied gaselectric butterfly valve and line-blind valve were vigorously promoted in themetallurgical industry in Tangshan City and included in the revision of national standards and norms.The project "Exploration and Application of the Construction of Intrinsic Safety Management System forMetallurgical Enterprises Based on Lean Management Thinking" won the Second Prize of Safety Science andTechnology Progress of China Safety Production Association.

Dual-Prevention Mechanism ConstructionShougang Co. continues to promote the construction of dual-prevention mechanism for risk classificationcontrol and hidden danger investigation and governance. In 2023, we completed the re-identi?cation of risks andformulation of control measures for each unit, with a cumulative total of 26,090 risks identi?ed and 30,437 controlmeasures formulated; through the implementation of the2023 Work Safety Special Remediation Programand othermeasures, we deeply promoted the effectiveness of hidden danger investigation and treatment to effectively resolvevarious types of hidden dangers and dissolve potential safety risks.

Construction of Smart Safety EnterpriseThe company takes the dual prevention control system as the basis, improves the intelligent level of safetysupervision of equipment and facilities and the behavior of operators, carries out real-time monitoring and multi-level warning of safety risks through the informatization platform, improves the ability of dynamic control of safetyproduction, and guarantees the escort for high-quality development.Expanding the intelligent monitoring function of personnel behavior:

the company optimizes 24-hour videomonitoring in 2,929 workplaces, and organizes the installation of AI image automatic identification on 300cameras, which automatically identi?es 8 kinds of behaviors, such as smoke, boundary intrusion, and wearingof labor protection equipment. Risk analysis and control reminders of typical violations are conducted in 5aspects, including personnel passage, safety stand, hoisting operation, safety belt use, and labor protectionwear, urging all units to strengthen management, learn from each other, educate workers to comply withregulations, and put an end to violation of rules and regulations.Strengthening the monitoring and early warning of production safety risks:

the company has included 367risk points above the larger ones, such as the temperature of the hot stove top, into the scope of information-based monitoring, realizing automatic early warning of risks above the larger ones and automatic generationof information on hidden dangers.Strengthening daily safety management:

the company has organized and improved the functions of automaticcontrol and big data analysis in four modules, including safety evaluation. It has optimized the modules of safetyactivities and construction technology reform, and added the modules of occupational health, related parties andmajor risks, so that all safety professional work is included in the control of the platform.Related Party Safety ManagementThe company integrates related parties into internal uni?ed coordination and management, builds a "community"mechanism for related party safety management with systematic thinking, comprehensively standardizes the safetymanagement business, and effectively prevents interested parties safety risks by means of safety qualificationaudit, safety training, and regular safety evaluation. In 2023, we established a grid management of interested

Shougang Co.’s safety risk control and hazard investigation and management measures in 2023Implement recti?cationmeasures around specialproject

On the basis of systematically carrying out various types of special safety managementwork, it has focused on promoting special management of ?re safety, with a total of 925?re safety hazards investigated and managed, and promoted 192 new technologies,such as mobile foam ?re extinguishing devices and thermal imaging ?re electricalmonitoring systems.Implementing priorityareas

The hidden dangers are analyzed by the "dual-control" system through big datastatistics, focusing on the larger risks and frequent hidden dangers, and prioritizeelimination methods and alternative methods, so as to reduce the frequency of theoccurrence of safety hidden dangers. Meanwhile, the company carries out bottom-upand anatomical investigation around the changes in the criteria for determining majorhidden accidents, supplements and improves the task lists for the inspection of majorhidden accidents in production and management positions, incorporates them intothe daily control of the dual-control system, and establishes a long-term mechanism torealize the "full self-inspection and others checked to zero"Enhancing on-siteoperation supervision

The company's Cold Rolling Department realized automatic threading operationfor heavy coils by production organization adjustment, equipment and automationrenovation and upgrading, reducing the threading operation from a monthly average of8 times to 4 times, and lowering the risk value from 210 to 42, which e?ectively reducedthe risk of operation personnel.Focusing on sourcegovernance of hiddendangers

The company mainly concentrated on typical and frequent hidden dangers sourcehazards for controlling, dug deep into the causes of typical hidden dangers. Thecompany continues to promote the "energy isolation" protection project to ensuresafety, organizing production, equipment and other professional essential safetyexpert team, based on national norms and industry standards, compiling the"Energy Isolation Guidance Manual", to further clarify the various energy isolationprotection standards, and to ensure the on site safety production.

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parties "one enterprise one file", organized interested parties units toregularly participate in the company's work conference on productionsafety, and signed "one-to-one" help responsibility certificates with 70regional interested parties in 48 operation areas of the company. Throughthe help program, the company promotes the independent improvement ofthe interested parties , continuously strengthens the foundation of safetymanagement, improves the management level of the interested parties ,and realizes the common development with the company. Occupational Health Management

Shougang Co. always starts from the perspective of employees' occupationalhealth, strictly abides by theLaw of the People's Republic of China on Preventionand Treatment of Occupational Diseasesand other regulations and standards,organizes and formulates annual occupational disease prevention andtreatment plans and implementation programs, specifies the controlmeasures such as regular testing, daily monitoring, and evaluation of hightoxicity, and ensures that the rate of detection of occupational diseasehazards reaches 100%; Based on the testing data, the company organizesoccupational health checkups for personnel exposed to hazardoussubstances, ensuring that the rate of checkups reaches 100%; Organizethe main persons in charge, occupational health management personnel,

Case: Establishment of fire emergency joint mechanism to build a safecompany togetherIn 2023, the company established cross-sectoralcooperation, cross-regional synergy and social firefightingand emergency response linkage mechanism, establishedfirefighting and rescue linkage mechanism with upstreamenterprises, clarified the linkage and disposal process,realized resource sharing, and set up a horizontallysynergistic and ef?ciently operated emergency response andrescue system. Taking the implementation of gas protectionstation and micro fire station duties as a leader, the company has formulated and implemented training andlinkage drill plans to effectively improve the level of emergency linkage skills. Grasping ?re safety to build safeenterprise, the company went deep into the community to carry out popularization of ?re knowledge, participatein the community ?re emergency plan process combing, and effectively promote the development of ?re publicwelfare undertakings.

Emergency Safety ManagementThe company strengthens coordination and linkage, and improves operational capabilities. Through emergencyresource investigation, accident risk identification and assessment, it identifies the type of emergency disposalon-site, and establishes a comprehensive plan, special plan, and on-site disposal program at three levelsof plan management; It actively establishes and improves the whole process control mechanism of physicaltraining, standard assessment and rehearsal, and establishes a ?re-?ghting and rescue linkage mechanism withadjacent units to realize the synergistic linkage of personnel, materials and information, and builds a horizontallycoordinated and highly ef?cient emergency rescue system.The company actively builds a professional emergency rescue team andregularly carries out employee emergency training and drills. In 2023, a totalof 5,539 emergency drills at all levels were organized, 105 cross-regionalcollaborative linkage drills were organized, and 598 emergency response cardswere updated and perfected; the company utilized the practical training base ofthe gas protection station, and organized hands-on and experiential training forrelevant parties, and 22 targeted emergency drills were organized. Safety Culture ConstructionThe company always adheres to the safety culture as a leading, andconstructs the long-term mechanism of enterprise safety production.In 2023, the company issued theSafety Culture Construction Program

and established the evaluation standards for the annual audit of safetyculture, which evaluated the overall safety culture construction ofeach unit through 43 scoring clauses.The company integrates the safety family culture with the high-riskpre-work meeting, and carries out cultural activities such as "safetymonth", "family-enterprise linkage", and "one family" of the relatedparties, to build a firm defense line of workers' safety productionawareness and transform the "soft power" of safety culture into "hardsupport" to promote safety management.Strengthening employee safety education and training is an importantguarantee for the sustainable development of enterprises. Variousforms of safety education activities were carried out to enhanceemployees' safety awareness and emergency response capability,focusing on various aspects such as safety awareness, hidden dangerinvestigation and safe operation skills.

Shougang Co. launches safety education and training program in 2023Conducting trainingto improve job riskmanagement andcontrol capabilities

The company has been doing accurate training and expanding the forms and channelsof training. Focusing on the enhancement of job risk management and control ability,2,648 training points have been identi?ed, 629 safety regulations have been fullyutilized by team instructors, 322 times of hands-on training for key positions have beenpromoted on a pilot basis, 1,254 courses have been formed by developing and utilizingthe online education and training system, and 50,169 times of order-type on-linetraining have been carried out.Conducting training toimprove the ability toinvestigate ?re safetyhazards

Focusing on the quality of the professional team to enhance the ability to use"standards + practice veri?cation" training mode, to enhance the ?re professionalsystem management ability to detect hidden problems, there were a total of 10 trainingsessions throughout the year, more than 720 person-times.Conducting safetyawareness trainingactivities

Innovative ways and means of training, for the maintenance of key projects, high-riskoperation content and the existence of cross-operation mutual in?uence of the point,to carry out perception training activities; make full use of the gas protection stationtraining base, the organization of internal personnel and related parties to carry outhands-on training, through the simulation of the operation, the perception of theoperation risk, and to further improve the actual operation of the ability and level.Conducting relatedparty training

To consolidate the related parties' hardware management of work equipment andpersonnel education and training. In 2023, the organization organized education andtraining for long-term related parties, and issued 6,940 "one person, one card" forquali?ed education and training; guide the related parties' standardized managementof work equipment with training, and standardized the uni?ed standard of 9,773 sets ofwork equipment, such as electric welding machines.Developing a secureonline education andtraining system

The company independently developed the safety online education and trainingsystem, presented the learning content in various forms such as video, audio, text, etc.,and improved 3 major categories and 15 system functions. In 2023, each unit uploadeda total of 1,043 training courseware, generated 1,167 training programs, and completedthe training for 26,523 person-times.

Safety month activities.The safety training totaled928,362

hours

225,891

participantsThe coverage rate of safety training100%

personnel exposed to hazardous substances to carry out occupational health protection knowledge educationand training, to ensure that the training pass rate of 100%. The company consolidates the basic management ofoccupational health through the construction of occupational health and safety management system, continuouslyimproves the working environment and conditions with the philosophy of intrinsic safety management, andprotects the physical and mental health of the employees and interested parties. Through mechanization to replacepersonnel operations, automation transformation to reduce the time of exposure to hazardous substances, andinvoking new materials to reduce the concentration of hazardous substances, the company will realize noisereduction in 3 places, temperature reduction in 3 places, dust reduction in 4 places, and replacement of chemicalexposure in 1 place. During the reporting period, no cases of occupational diseases were found in the company. Safety Management of the Fire ControlShougang Co. is oriented to consolidate the foundation of ?re ?ghting in a comprehensive manner. The contentof the basic ?le is streamlined and optimized, with 27 items cancelled and 9 items merged; three managementsystems for key ?re safety areas and other management systems are revised, as well as one management methodfor micro-?re stations, to ensure that there is a system for ?re ?ghting; ?re ?ghting professional skills trainingactivities are organized to enhance the practical ability of ?re ?ghting. In 2023, there were more than 750 trainingsessions and more than 17,000 person-times.The company carries out comprehensive special rectification with the purpose of eliminating fire hazards. Thecompany carries out special rectification of six systems, including indoor fire hydrant, fire emergency lightingand evacuation instruction system, automatic ?re alarm system, etc. It also carries out six special researches onelectric vehicles, photovoltaic power generation, oil storage places, etc., and formulates management and controlmeasures for the problems, so as to reduce the risk of on-site ?re protection; We carry out the promotion of newfacilities, according to the line-type temperature-sensitive ?re detectors, mobile foam ?re extinguishing devices,thermal imaging fire electrical monitoring system and other fire facilities test effectiveness, in the hot rolling,steelmaking, ironmaking and other areas to promote ?re detection and early-warning system, to achieve timelywarning of ?re, control in advance.Shougang Co. has taken the strengthening of prevention and control capability as the key to comprehensiveresearch and development of new technologies. The company continues to promote the application of " SmartFire", added six ?re facilities warning function, research and development of ?re hydrant positioning APP, deepenthe application of full coverage of video monitoring, independent research and development of the early stage of the?re automatic identi?cation model, through the intelligent and effective operation to enhance the level of intrinsicsafety management.

The rate of detection ofoccupational disease hazards100%Occupational health checkuprate100%Training pass rate100%

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Case: Shougang Co. "Safety Month" activities in 2023Shougang Co. took "everyone talks about safety, everyone knows emergency" as the theme of the safetymonth, and carried out a series of work such as warning education, cultural propaganda, thematic training,emergency drills and so on. Shougang has organized various activities such as safety-themed calligraphy,comparing painting and artwork, safety quiz competitions and safety micro-videos to create a safe productionatmosphere. Taking "Work Safety Month" as an opportunity, it has organized 749 fire safety duties, fire-fighting operations and other fire-fighting education and training sessions, with 16,678 participants,distributed 5,000 ?re-?ghting publicity materials, and conducted ?re-?ghting knowledge contests.The company comprehensively promotes the "six-one" activities of Safety Production Month; replaces104 safety culture slogans and puts up 30 posters; organizes 4 special trainings; carries out the cultureof "Safe Home", compliance verification, and cross-operating department exchanges and seminars,enhancing the awareness of major hidden dangers prevention and improved the ability of the staff todetect hidden dangers; it has also organized various kinds of activities such as family members visitingthe plant, updating family photos, and participation of family representatives in the weekly safetymeeting, so as to create a strong safety culture atmosphere.

? Qiangang Co. won the "Advanced Unit of Emergency Management and Production Safety" of HebeiEmergency Management and Production Safety Association, one ?rst prize and three second prizesof the Third Emergency Management and Safety Science and Technology Achievement Award, andthe Outstanding Organization Prize of 2023 Safety Production Emergency Rescue Skills and PhysicalFitness Competition of Qian’an Emergency Management Bureau;? Jingtang Co. was honored as "Advanced Unit of Emergency Management and Safe Production"by Hebei Emergency Management and Safe Production Association, "Pioneer Unit of Publicityfor Work Injury Prevention in Hebei Province" by Hebei Department of Human Resources andEquipment Security and Hebei Department of Emergency Management, and "Winning Unit ofShougang's 'Youth Safety Cup' Competition in 2023";? Cold-R Co. won the third prize of Beijing Shunyi District Limited Space Competition;? Zhixin Co. was awarded the honorary title of Provincial Healthy Enterprise in Hebei Province.

Honors:

Quality Assurance Quality Management System

Shougang Co. adheres to the quality management ideal of "dedicated to excellent products, pursuing customersatisfaction", strengthens the quality responsibility system structure, establishing and effectively operated ISO 9001quality management system and carrying out laboratory management system certi?cation to deepen the qualityimprovement action; We strengthened total quality management, actively practiced "quality is life", increased theinvestment in quality and technological innovation, and adhered to the pursuit of product quality. Strengthening Quality ManagementQuality Process Management

Shougang Co. adheres to standard leadership, carries out benchmarking management, continuously optimizesproduct acceptance standards between processes, formulates product standards for different processes andvarieties, and continuously improves the product yield rate. In 2023, The company has introduced 27 quality-related enterprise standards. The company adheres to systematic promotion, establishes and gradually improvesthe centralized consistent quality management mode driven by the dual-wheel drive of "full-service + intelligentcontrol", strengthens the quality process control, takes "consistent quality management enhancement" as thebreakthrough point, and pushes forward the quality management from the perspective of the whole situation.The company continues to adhere to the "Double Ten" research, aiming at the whole process of quality bottlenecksand customer focus issues, continue to carry out process technology research, manufacturing challenges, qualityresearch and a series of quality improvement activities, to ensure product quality under control. In 2023, thecompany set up 21 "Double Ten" projects, involving order ful?llment rate, quality pass rate and other 33 indicators,through the implementation of the project to improve the level of management indicators. At the same time, thecompany also took "Listed Supervision Projects" as a means to improve the quality management level.

Case: High level of quality inspection helps the company to continuously improveproduct quality

The Quality Inspection Department takes technological innovationas the basis and actively promotes management innovation. Throughcontinuous organization and implementation of laboratory accreditationsystem construction, quality inspection department of the companyhas won the "Ability Verification Quality Award" twice. after a numberof replacement reviews, method optimization, quality inspectiondepartment accreditation capabilities including steel and alloys, oresand minerals, metal materials and metal products, 26 categories, 109testing items, 130 testing standards (of which 12 ASTM standards).The LIMS information system reform organized and implemented isintegrated with the Laboratory Management 17025 guidelines, realizingthe online management of "people, equipment, raw materials, methodsand environment". Inspection data information was integrated into thecompany's data center, becoming a powerful part of the digitalization ofthe company's steel product manufacturing process.Meanwhile, through the high-quality project management, the Xfluorescence analysis rate of alkali metals in the blast furnace wasincreased by 70%, which effectively supported the reduction of alkalimetals in the blast furnace; the success rate of visual recognitionin the loading unit of the automatic inspection system for hot rolledcoils was optimized by 10%, which greatly improved the efficiency ofprocessing and inspection of coils and the level of quality control, andassisted in the reduction of inventories; and the analysis rate of EBSD for dual phase automobile sheets wasincreased by 20%, which helped to continuously improve the product quality of the automobile sheets.

Quality Inspection Department's

Chemical Analysis Laboratorywas honored with the "2023National May Day Women's

Model Post"

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Strengthening Supervision and AssessmentThe company has established a comprehensive system for product quality rewards and punishments, whichincludes mechanisms for inspection management, customer complaint handling, problem listing and oversight,and professional assessment management. Implementation of inspections and supervision occurs at all levels, withweekly self-inspections by each unit and joint inspections by specialized departments. Through careful analysisand resolution of customer complaints, the company has enhanced customer satisfaction. In 2023, the companyconducted 49 internal inspections and a total of 672 items.The company has established a perfect quality assessment index system, formulated annual quality objectives,and implemented performance assessment according to the completion of monthly indicators; the company hasformulated detailed quality accident assessment and management methods for quality problems on the productionline, and re?ned different accident levels and corresponding assessment methods. In order to motivate employeesto innovate and promote the continuous progress of quality, the bottleneck quality problems are tackled in the formof "Listing supervision ", and corresponding incentive mechanisms have been set up.

Product Safety ManagementThe company actively practices the ideal of sustainable development, emphasizes the sustainable design of productlife cycle, and is committed to providing customers with safe and high-quality products. Strengthening product self-inspection and self-control, according to the characteristics of the industry products, in response to the customer'sRoHS/REACH and other environmentally hazardous substances control requirements. In accordance with therequirements of the Measures for the Administration of Hazardous Substances, the company implements processsupervision and outsourced testing in terms of raw materials, processes and packing. The company passes thedirective requirements of customers and related parties to the upstream suppliers step by step; and organizesqualified third parties to conduct tests and submitting test reports for all kinds of products. At the same time,according to the list of high-risk substances, we constantly synchronize the third-party testing and updating, inorder to meet the market and customer needs. Quality Culture Construction

The company focuses on improving product quality, takes"Quality Month" as an opportunity, organizes regularquality expert lectures and builds a quality culture aroundthe general requirement of "implementing the strategy ofstrengthening the quality of the country and promoting theimprovement of quality and ef?ciency". At the same time,the company carries out quality improvement exchanges,customer visits, quality inspections, collection of goldenideas, quality essays and other activities, organizes allstaff participating in the quality improvement work, andstrengthens the awareness of quality culture among staff.In 2023, 1,569 visits were made to customers on productquality. In order to recognize the advanced and set anexample, we selected annual quality leaning advancedunits 9, advanced individuals 138.

Case: Shougang Co. "Board" management to create quality benchmarksThe company's "weekly board meeting" management mode adheresto the problem-oriented, focusing on the whole process quality keyindicators, covering the " Double Ten" project, quality inspection, keyindicators, major work, market and customer focus on the ?ve majorparts of a more targeted, goal-oriented and clearer.Through the weekly board meeting systematically solved 7 bottleneckssuch as positive and negative tolerance control of slabs, high-strengthsteel coil, silicon steel straightening cutting edge quality improvement.Weekly board meeting is an exposure and supervisory platform for thecompany to focus on quality improvement, product promotion, customerservice and other work, which has strengthened the foundationof consistent quality management and supported the company's"Manufacturing + Service" level enhancement.

Case: Shougang Co. carried out upstream and downstream process youthquality improvement action

Case: Shougang Co. honored with "Quality Excellence Partner Award" by NIO

In September, Shougang Co.'s hot rolling mill and coldrolling mill communist youth league jointly carried out the"Cold rolling mill and hot rolling mill linkage to improvethe quality for 100 days" exchange activities for youngworkers. The "pursuit of excellence and create high-qualityproducts" Youth Workers Collaboration Group was formedto build a bridge for upstream and downstream workers towork together to improve the quality by taking meeting withthe individual needs of customers as a standard, makinggood cooperation between upstream and downstreamprocesses, strengthening process control, and providingstrong support for the quality of products.

In 2023, the company was awarded the "Quality Excellence Partner Award"by NIO, making it the only steel company to receive this award, whichrepresents NIO's high level of recognition for its partners.Adhering to the ideal of "Manufacturing + Service", the company has workedclosely with the NIO team to optimize the production process, providedall-round technical support and advice, and initiated the certi?cation of anumber of steel grades, thus contributing to the brand value and marketcompetitiveness of NIO.In the future, the company will continue to deepen the strategic cooperationwith customers, linking customer value with high quality in depth,responding quickly to customer needs with better service, and contributingto intelligent green mobility together with customers.

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Customer ServiceShougang Co. fully implements the idea of "Manufacturing + Service", insists on customer-oriented, craftsmanship andintelligent products to meet the needs of customers, and focuses on improving customer experience and satisfaction.The company deepens the application of intelligent marketing service platform, innovates marketing service system,strengthens customer relationship management, carries out customer visits and exchanges on a regular basis, insistson walking in step with the times, and continues to establish a user ecosystem service system characterized by "opensharing, interconnection, and value creation", realizing win-win cooperation with customers. Improving Service System

Building Customer Service Management Organization

In order to strengthen customer relationship management and realize the overall efficient management ofcustomer service, we integrate customer service resources and establish a new service platform. The new platformfocuses on market and customer to carry out accurate service management, and set up a regional customerservice team. The customer relationship management functions include customer information management,customer demand-complaint-objection management, customer activity management and satisfactionmanagement, etc., to ensure that the service needs of the customers are accurately identi?ed and delivered inward,to realize closed-loop management and effectively guarantee the service quality.Establishing Customer Service Management SystemThe company attaches great importance to customer service and continues to optimize the service process and improvethe service level. At the same time, we continue to perfect and improve the customer service system. The company hasformulated theSteel Product Customer Information Management System,Steel Product User Satisfaction ManagementSystem,Steel Product Quality Objection Management Systemand so on, in order to standardize the behavior of thecustomer service, improve the quality of the customer service, and to ensure the establishment of a long term, stable,and mutually trusting cooperative relationship between the enterprise and the customers.

Case: Shougang Co. adheres to the concept of "Manufacturing + Service", andprovides accurate service to help users reduce costs and increase efficiencyAiming at customer demand, precise and fine service quality,Shougang Co. adheres to the awareness of "manufacturing +service", adhering to the concept of "customer-oriented", thecompany's production, marketing and research team gives full playto the product advantages, based on the needs of customers toreduce costs and increase efficiency, and vigorously promote theuse of hot-dip zinc-aluminum-magnesium(low aluminum) alloycoated steel sheet and strip in the various models of customer,customized for customers with the best cost-effective materialselection program. Shougang Co. has lean products, precise serviceand sincere responsibility, and continues to promote the effective enhancement of product power and servicepower to help customers to move steadily to the future.Strengthening Strategic Cooperative Relations

Customer demand is the driving force of the company's development and the basis for sustainable development. Wehave always practiced the ideal of "Manufacturing + Service", continuously improving our competitiveness aroundquality, cost, delivery, R&D and service, and exploring ef?cient, integrated and synergistic cooperation modes withour customers in the four areas of communication expansion, R&D certi?cation, technology cost reduction andservice enhancement. At the same time, the company deeply participates in the EVI of strategic customers, activelypromotes the implementation of localization projects, demonstrates the company's technical service strength, andprovides Shougang Co. solutions for customers' localized production and technical cost reduction, which realizesa win-win cooperation between the two sides. In addition, the senior leaders of the companies visit each other on aregular basis to establish a good and long-term cooperative relationship.

Improving Service QualityStrengthening Customer CommunicationThe company increases visits and exchanges, innovates the form of activities, and carries out all-round and multi-dimensional customer communication and interaction. 2023, it carried out customer visits and exchanges for3,758 times, of which 1,200 visits were made to high-value users, and carried out technical exchanges for 1,860times, and participated in industry forums, and the promotion of products of leading enterprises in the industry.To strengthen customer interaction, the company successfully held technology forums for automotive sheets,medium-thick plates, coated sheets, ultra-high-strength steel of MCCR production line, etc., carried out "ShougangDay" in BYD, Chery and Honda and other OEMs, and organized a summary meeting of technical exchanges.Protecting Customer PrivacyThe company attaches great importance to the protection of customers' rights and interests. We provideprofessional services from the perspective of customers' needs and enhance security and privacy protectionof customers' information. The company has nominated a customer representative to be in charge of themanagement of customers' information ?les. We have formulatedInformation Security Strategy Management System

andInformation Security Organization Management System. In addition, the company has set up a network securityoperation center to strengthen the integrated management of network security technology and operation, and torealize the dynamic closed-loop management of IT assets, vulnerabilities, and security events. At the same time,we organized network security races and other activities to strengthen employee awareness of network security,customer information protection and other publicity and popularization education, and effectively improvedcustomer information security protection.

With a high sense of mission and responsibility, Shougang Co. took multiple measures and ef?ciently coordinatedto ensure the stability and safety of the supply chain, and effectively helped the downstream enterprises tohave stable and smooth production. During the reporting period, Shougang Co. received 1.25 million tonnes ofemergency orders, and through efficient internal coordination, it delivered 1.19 million tonnes of products ontime, with a delivery rate of 95.2%, and received 23 thank-you letters and 5 silk ?ags from downstream users, andreceived 21 awards, including "Best Partner Award" by BYD, "Quality Excellence Partner Award" by NIO, "BestService Provider Award" by BMW Brilliance, "Outstanding Supplier" by CIMC, "Excellent Assistance Award" byGAC Group, "Outstanding Contribution Award" by TBEA, the Great Wall Motors Company's highest honor "GenuinePartner Award", "Excellent Partner Award" by Haier Group, "Outstanding Cooperation Award" by Bondi Pipeline,"Annual Strategic Cooperation Unit Award" by CSCEC etc.

82 83

Responding to Customer DemandsThe company has established an effective customer feedback mechanism and a closed-loop feedback process,formulated the "Steel Product Quality Objection Management System" and "Steel Product Quality ObjectionManagement Measures", clari?ed the objection management standards, strengthened the management of steelproduct quality objections, and enhanced customer satisfaction.The company establishes a uni?ed and centralized platform for customer demands, moves forward the path ofacquiring demands and improves the way of collecting demands. It makes full use of weekly meetings, monthlymeetings, product promotion meetings and other platforms to provide timely feedback on client issues anddemands, and shares service data according to business needs to achieve information synchronization. Wepromote timely response to customer needs, focus on customer experience, and continuously improve the synergymechanism of "List of Issues - Listing Supervision - Solving a problem", so that we continue to improve the qualityof service and effectively solve the actual needs of customers.

The transformation of digital marketing services leads to the improvement of customer satisfaction. The companyactively constructed an integrated management platform for production and marketing, formed a centralized,uni?ed, fast-responding and ef?ciently operated marketing network with Shougang Co.'s marketing center as thecore and a combination of production bases and processing centers, and continued to build a one-stop customerintelligent marketing service platform to better meet customer needs, improve service ef?ciency and quality, andestablish a long-term and win-win cooperation with customers. In 2023, the company's comprehensive customersatisfaction score was 98.8.

Case: Shougang Co. establishes customer feedback mechanism and closed-loop management

The company continues to establish a feedback closed-loop mechanism to continuously increasecustomers' trust and satisfaction. In 2023, the company organized a customer satisfaction questionnairesurvey on the quality and service of Shougang's products.In the survey, CNPC Jurong Steel Pipe Co., Ltd.put forward the demand for improving the inclusions control of one of steel products during the survey.The company's sales staff veri?ed the problem with the customer, the service team responded ef?cientlyand quickly, and the technical service personnel tracked problems and formulated corrective measures.At the same time, the company made a return visit to the client for the demand, and the customerfeedback was very satisfactory. In the linkage service with CNPC Jurong Steel Pipe, the companyproactively helped the customer to solve the problems, ensure that the actual needs of the customerto respond to the customer's trust and satisfaction, and increase the company's "stickiness" with thecustomer.

Developing the Win-win CooperationThe company adheres to the idea of "Intelligence, Service, Win-Win", practices responsible marketing andpromotion, and uniformly designs and optimizes the company's product manuals. Shougang Co. always maintainsthe awareness of compliance in the whole process of business development and contract management, andensures the provision of accurate and comprehensive information in market development, customer sales andproduct packaging management to protect the rights and interests of customers. At the same time, the companyregularly conducts compliance marketing training for its employees and stipulates that all promotional contentand forms must be reviewed for compliance and appropriateness, and that exaggerated or false activity content isstrictly prohibited, in an effort to portray a responsible brand image. During the reporting period, the company didnot experience any negative incidents arising from its products or services.

Case: The company was honored with the Excellence Cooperation Award ofChery Automobile

Case: The company won the Excellent Supplier of GAC Honda

Shougang Co. was awardedas "Excellent CooperationAward" by Chery Automobilefor the year of 2023, which isa high affirmation of CheryAutomobile for the continuousdeepening of the cooperationbetween the two parties andShougang Co.'s excellentsupply performance.At present, the two sides are carrying out in-depth cooperation around the development of low-carbon andgreen steel materials and the provision of solutions for vehicle materials, so as to provide Chery Automobilewith more "Shougang Wisdom" and "Shougang Solutions" for its high-quality development.

At GAC Honda's annualsupplier meeting in 2023,GAC Honda awardedShougang Co. with "GACHonda's Excellent Supplierin 2023", fully recognizingShougang Co.'s outstandingperformance in "Quality,Cost, Delivery, R&D, andService" and other aspects.The service team of Shougang Co. will, as always, take customers' needs as its own responsibility, makethe same efforts with customers, create and share with customers, continuously promote the researchand development of technologically advanced products, take customers' satisfaction as the only criterionto test its work, and return customers' trust and support with better products and services to helpcustomers go steady and make great progress.

Customers Demand Closed-loop Management

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84 85

Supply Chain ManagementSupply chain security and stability is an important foundation and guarantee for sustainable development ofenterprises. Shougang Co. attaches great importance to business cooperation with suppliers, continuouslyoptimizes the supplier management system, strengthens ESG management of supply chain, practices sunshinepurchase, actively empowers suppliers, promotes the construction of green supply chain and builds a responsiblesupply chain. Supplier ESG Management

The company strictly abides by national laws and regulations and actively pays attention to the performance ofits suppliers in terms of labor situation, environmental protection, production safety and privacy protection, etc.By publishing theCode of Business Conduct of Beijing Shougang Co.on the official website and publicizing theCommitment on Code of Conduct of Business Partnersin a variety of ways, Shougang Co. informs the relevant partiesof the necessity of observing and ful?lling the social responsibilities in terms of human rights, business ethics andenvironmental protection.

Supplier ESG Assessment

In accordance with relevant management systems and methods, thecompany carries out supplier access, auditing, evaluation, gradedmanagement, etc., and conducts on-site inspections when necessaryto identify the environmental and social risks in each link of thesupply chain. In 2023, a total of 29 supplier audits were completed,and 394 new suppliers were admitted. Currently, there are a totalof 3,246 suppliers, all of which are mainland suppliers. During thereporting period, the company evaluated a total of 1,915 suppliers, ofwhich 26.48% were Class A suppliers, 36.34% were Class B suppliersand 36.71% were Class C suppliers. Stabilizing Supply Chain SecurityThe company is the only platform for the development and integration of steel and upstream iron ore resourcesindustry in China of Shougang Group, the controlling shareholder, and the supply of iron ore, coke and coalresources for production is secure. In terms of iron ore, Shougang Group owns Shuichang Iron Mine and XingshanIron Mine with an annual production capacity of 4 million tonnes of iron concentrate in China, and controls Peruvianiron ore with an annual capacity of 20 million tonnes of iron concentrate abroad. Macheng Iron Mine underconstruction has high reserves, low cost, environmental protection and efficient transportation, with an annualproduction capacity of 7 million tonnes of iron concentrate. After it is put into production, the company's iron oreresource support capacity will be further improved. As for coke, the coke of Qiangang Co. is mainly supplied byQian'an Zhonghua Coal Chemical Co., Ltd., a joint venture between Shougang Co. and Kailuan Co., the coke ofJingtang Co. is supplied by Tangshan Shougang Jingtang Xishan Coking Co., Ltd., a joint venture between JingtangCo. and Shanxi Coking Coal, and the supply of coke resources is guaranteed. In terms of coal, the company hassigned long-term cooperation agreement with large state-owned coal groups. Shougang Fushan Resources GroupCo., Ltd., a shareholder of Shougang Group, also provides some high-quality coking coal resources to the company,and the coal supply guarantee is strong. Empowering Suppliers

Shougang Co. has passed on the ideal of social responsibility in environmental protection, safety, health and anti-corruption to its suppliers by organizing supplier training activities from time to time; and strengthened the ability ofpartner enterprises in the supply chain to perform in good faith and take the initiative to assume social responsibilityby communicating through on-site thematic seminars, suppliers' conferences, daily technical exchanges, andcleanliness promotion. During the reporting period, the company carried out 439 training exchanges on supplier qualitymanagement, low-carbon development and technical seminars, involving 519 suppliers.

The company organized suppliers to hold a seminar on carbon reduction management.On August 17, 2023, thecompany organized suppliers in the ?elds of alloy, activated carbon, solvent, etc. to hold the "Shougang SupplyChain Partners Carbon Reduction Management Seminar". Weintroduced the policy background and Shougang Co.'s carbonreduction plan to the suppliers, so that the suppliers fully realizedthat low-carbon development would be the road that everyenterprise must go through, and the enterprise that carries out the"low-carbon" management work as early as possible will occupythe ?rst opportunity in the future market.During the reporting period, the company has gone to Shanxi,Ningxia and Inner Mongolia to carry out low-carbon research,promotion and training for key suppliers. Through face-to-facecommunication of carbon reduction, popularization of carbonreduction basic professional knowledge, and enhancement ofsuppliers' carbon reduction awareness.

86 87

Sunshine PurchaseShougang Co. promoted centralized procurement in a scientific and orderly manner and established aninformation-based centralized procurement system. During the reporting period, the company's supply chaincollaboration platform, bidding and procurement platform and shopping mall were formally put into operation, andthe company was successfully selected as a pilot unit of the new version of the "Code of Practice for Procurementby State-owned Enterprises".In order to promote the digital transformation of enterprise procurement and supply chain management innovationunder the new situation, and enhance the core competitiveness of the enterprise, Shougang Co. takes thepromotion of "Procurement Code of Practice for State-Owned Enterprises" as an opportunity, and builds up anormalized, standardized, digitized and institutionalized compliance management mode of the whole process ofprocurement, which can provide good business support and management system guarantee for the centralizedprocurement management of trans-region and multi-base.

By building a "normalized, standardized, digitized and institutionalized" compliance management system forthe whole procurement process, and creating an integrated supply chain system platform that is "sunshine,transparent, safe and efficient", the company's procurement process has been made electronic and open andtransparent. At the same time, the company will strengthen multi-dimensional control, actively promote integritybuilding with suppliers, realize sunshine procurement, and improve procurement quality and ef?ciency.In 2023, the number of online orders of the company was 31,638, and online purchases accounted for 100%.

Green Supply ChainGreen supply chain becomes the future development direction. Shougang Co. adheres to the concept of greenmanufacturing and low-carbon development, and actively promotes the construction of green supply chain.The company carries out Life Cycle Assessment (LCA) on the products of key suppliers. In order to understandupstream suppliers' understanding of LCA, process technology flow and carbon reduction technologyinnovation, the company organized a full life cycle questionnaire for key suppliers' products. Carbon footprintanalysis was carried out for the whole life cycle process of suppliers' products from raw material ,productionprocesses, logistics, energy input, solid waste recycling and other processes. Based on the evaluation of thewhole life cycle of the supplier's products, we analyzed the main reasons for carbon emissions, provided thesuppliers with thoughts for carbon reduction, and guided the suppliers to develop low-carbon products.

Case: Shougang Co. was selected as a Pilot Unit for the New Version of the"Code of Practice for Procurement of State-Owned Enterprises" StandardAt the 2nd China Government and Enterprise Procurement Digital Supply Chain Ecological Summitthemed "Link - Integration - Evolution", Shougang Co. was selected as a pilot unit for the newversion of the Standardized Code of Practice for Procurement of State-owned Enterprises (SOEs),together with China Aerospace Science and Technology Group (CASTG), China Shipbuilding Group(CSSG), and China Rongtong Group (CRG).

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A preliminary understanding of 22 issues in 9

categories, including supplier carbon emission

accounting, carbon reduction planning, existing

carbon reduction methods, recycling, and willingness

to reduce carbon.

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Understanding the consumption of raw materialsand energy media, the output of main productsand by-products, and the technological process indetail, and calculating carbon emissions accordingto the data ?lled in.

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Focusing on the power consumption of key suppliers,the current situation of power greening, and thedirection of transportation optimization.

Framework diagram for the "four-in-one" procurement process

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88 89

NationalStrategicProjectsParticipation90ResearchandDevelopmentInnovations92IntelligentManufacturing98IndustryCollaboration102PublicWelfareActions106UrbanIntegration107

Value:

DemonstratingMission andResponsibility

90 91

National Strategic Projects ParticipationShougang Co. has always taking the responsibility for serving the national strategy, assisting the great powerwith scientific and technological innovation, and contributing more power to the national strategy, the nationaleconomy and people's livelihood, and realizing the high level of scienti?c and technological self-reliance and self-improvement.

High-end bridge steel Q500qE

Exclusive supply of the world's ?rst dual-purpose combined road and railway cable-stayed bridge with highand low towers, Wuhu Yangtze River Bridge, and the world's tallest bridge, Beipanjiang River Bridge

Baihetan Hydropower StationWudongde Hydropower StationThe ?rst set of intelligent transformer

substation of high-speed railway

Marine steelIt is used in the BlueWhale 1 Drilling Rig

Beipanjiang River BridgeWuhu Yangtze River Bridge

Electrical steelIt has been used in Wu Dong De Hydropower Station, the key project of "West-East Power Transmission",the ?rst set of intelligent transformer substation of high-speed railway, and Baihetan Hydropower Station ofThree Gorges, which has the largest total installed capacity in the world under construction, etc.

High Strength Ship PlatesExclusive supply of domesticallyproduced world's largest bulk carrier"New Generation Super Large 400,000Tonnes Ore Ship"

High-strength weldsteel Q460GJZ25

Blue Whale 1 Drilling Rig

New Generation Super Large400,000 Tonnes Ore Ship

Xiongan New Area High-speedRailway Station Project

Case: High-end oriented electrical steel to support the "Belt and RoadInitiative" key projects

Zhixin Co.'s high-end oriented electrical steel products have been successfully applied in the keyprojects of "Belt and Road Initiative". In 2023, the company's high-end oriented electrical steel productshave been successfully applied in the key projects of "Belt and Road Initiative", such as the upgradingof 230kV transformer substation in Ananda, Bazaar, Kursi and Madunaja of Bangladesh, and 550kVswitching station in Myla of Pakistan, etc., by virtue of the outstanding product performance and high-quality customer service. It is another time that the company's electrical steel products have achievedsignificant achievements in the international key cooperation projects, which has made a greatcontribution to the support of the national "Belt and Road Initiative " and the benefit countries andpeople along the routes.

Case: High-strength ship plate applied to 5500 tonnes double jib variable amplitudecrane ship projectJingtang Co.'s high-strength ship plate is applied to the hullstructure and part of the stress structure of "5500-tonnes JibVariable Amplitude Crane Ship Project".The 5500-tonnes Jib Variable Amplitude Crane Ship Project is themost advanced technology and the largest project of its kind in Chinaso far. The crane ship is a non-self-propelled double Jib variableamplitude large crane ship with multi-layer deckhouse, which canmeet the construction requirements of the Yangtze River Estuary,Pearl River Estuary, Zhoushan Islands and Bohai Bay and other majornear-coastal waters, and has a broad market application prospect.It is located in the engineering construction field flagship ship newbenchmark, representing the green, intelligent development trendand direction of offshore engineering vessels.

It is used for the first time in theXiongan New Area high-speedrailway station project

92 93

Research and Development Innovations

Shougang Co. adheres to the innovation drive, focuses on the world's cutting-edge process and technologies,strengthens independent research, independent innovation, independent integration, drives comprehensiveinnovation with technological innovation, and pushes technological innovation to become the ?rst competitivenessof the company.

Research and Development System

The company continues to improve and perfect the open technologicalinnovation system, deepen the technical research projects, optimize theexpert workstations, strengthen the external cooperation platform, andstrengthen the ability of "Technological Innovation + R&D". Relying on theR&D system of "one research institute and several research centers",the company effectively integrates the scientific research power of thesociety and upstream and downstream enterprises by strengtheningthe collaborative research of process R&D, production line design andequipment manufacturing, and synchronously promoting process innovationand equipment innovation across specialties and units. The company carriesout high-level external cooperative research to make up for shortcomings,solve key strategic new steel materials problems, and make breakthroughsin new products, new technologies and new process innovations.The company continuously allocates innovation resources, improvesincentive mechanism, focuses on scientific and technological talents, andimproves and revises various systems such as scienti?c and technologicalproject management, expert workstation construction, transformation ofscientific and technological achievements, proprietary technology, patentthree-year action plan, standard formulation and management, scientificand technological confidentiality and other system. Meanwhile, thecompany formulates technological innovation planning, actively researchesand develops major scientific and technological projects, and the level ofscienti?c and technological achievements continues to progress. In termsof scienti?c research management, the company has formulated scienti?cand technological project management methods and other systems,strengthened the forward-looking, strategic and systematic layout ofinnovation and R&D, continued to promote the management of scientificand technological projects in the whole life cycle of all elements, andstrengthened the project process management.The company continues to increase R&D investment and promote newproduct development. In 2023, the company invested 5.022 billion yuan inR&D, with R&D investment ratio reaching 4.41%.

Invested

5.022

billionyuan in R&DR&D investment ratio

4.41%

Shougang Co., JingtangCo.,Cold-R Co. and Zhixin Co.honored as "High-techEnterprises"Zhixin Co. was honored as"Science and TechnologyReform Action DemonstrationEnterprise" by the State-owned Assets Supervision andAdministration Commission ofthe State Council, "TechnologyInnovation DemonstrationEnterprise of Hebei Province",and "Science and TechnologyLeader Enterprise of HebeiProvince".

Innovative Talents

The company strengthens the cultivation and development of scienti?c andtechnological leading talents, establishes evaluation mechanism, fault-tolerance mechanism and incentive mechanism matching with technologicalinnovation, and continues to carry out a series of work around creatingan innovative atmosphere, providing innovative conditions and optimizinginnovative mechanisms, and vigorously cultivates innovative talents. Thecompany enhances the staff's innovation consciousness by creating staffinnovation studios, carrying out "innovation studio evaluation and display","innovation lecture hall" activities, exchange and learning with benchmarkenterprises, organizing youth innovation activities and innovation salon, etc.,so as to create a strong atmosphere of innovation. In 2023, the companyappointed 4 "chief scientists" and 22 "chief technical experts".

The company builds bridges and ties for co-construction and sharing, and explore new horizonsfor innovation alliance. We create staff innovationstudio, actively organize and carry out the activitiesof creating staff innovation studio, carry out studiostar rating, drive the enthusiasm of the majority ofemployees to learn and master modern scientificknowledge and high technology; build innovationpractice platform, with the youth innovationworkstation as a carrier, to encourage the youthtechnical backbone to take the initiative to unveiland solve the problem, driven to carry out scienti?cand technological innovation and research.

Percentage of R&D personnel

13.61%

Among them, the proportion ofpersonnel with master's degreeor above

28.21%

Increase by

5.94%

y-o-y

Youth workstation project

research seminar

Innovation Studio alliance

Innovation studio:

· Dong Lijie Innovation Studio, Chen Wanzhong Innovation Studio and Zhang Weizhong InnovationStudio were honored as "National Machinery, Metallurgy and Building Materials Industry ModelEmployee Innovation Studios".· Li Chunyuan Innovation Studio, Jing Xiaoxing Innovation Studio, and Qi Chunyu Innovation Studiowere honored as the ?rst batch of industrial-level Employee Innovation Studios in Beijing.Employee technological innovation achievements:

· Guo Shubai, from Shougang Co.'s Steelmaking Operations Department, with his "Bekenbach AnnularSleeve Kiln High-E?ciency and High-Quality Production Technology Development", was awardedthe Metallurgical Science and Technology Award Front-line Worker Prize of China Iron and SteelAssociation, Chinese Society of Metals.· Awarded

special prizes,

?rst prizes,

second prizes, and

third prizes for technologicalinnovation achievements of workers in the national machinery, metallurgy, and building materialsindustry in 2023.· Awarded

?rst prize and

second prizes of Capital Workers' Independent Innovation Achievements.

94 95

Intellectual Property Rights ProtectionShougang Co. attaches greatimportance to the protectionand management of intellectualproperty rights, and has setup an intellectual propertymanagement leading group,and continues to improve theintellectual property rightswork system and managementsystem. The company hasformulated and continuously revised thePatent Management System,TechnicalSecrets Management Measuresand other related management systems,standardized the whole process management from patent excavation,application, maintenance to apply, and actively supported and promotedthe formation of high-level scientific and technological achievements fromthe perspectives of organization and planning. We formulate thePatentManagement Work Plan 2023, organize and carry out patent protection for keyproduction lines, and carry out patent protection from the aspects of productmanufacturing, control methods and related processes and equipments, etc.We open up the patent prequali?cation channel, accelerate the authorizationof key patents, and form a technology protection barrier. At the same time,the company organizes multi-level training on patent-related knowledge,and strengthens the popularization training on patent knowledge for sitetechnicians to avoid the risk of intellectual property infringement.

Shougang Co. and Zhixin Co.are awarded"National IntellectualProperty AdvantageousEnterprises"In 2023, Shougang Co. appliedfor1,219patents andAuthorized

patents,including

inventionpatents.

? Two patents of " A Method and Device for Determiningthe Transmission Torque of Cold Rolling Mills" and"A Non-Oriented Electrical Steel and Its PreparationMethod and Application" were awarded the ExcellentPrize of the 24th China Patent Award.? The patent of " A Low-temperature High Magnetic

Susceptibility Oriented Silicon Steel ManufacturingMethod with Excellent Bottom Layer" won theExcellent Prize of the First Hebei Provincial PatentAward.? The patents of " Strip Steel Coiling Temperature Control Method, Device and Strip Steel

Processing System" were successively authorized by Korean National Patent O?ce, JapaneseNational Patent O?ce and American National Patent O?ce respectively.

Technological innovation

Iron-making

Continuous development of low-carbon emission furnace burden structure, self-designeddevice and the ?rst completion of biomass hydrogen-rich micro-powder 100-tonnes continuousinjecting industrial test.Promote the research on carbon capture technology of oxygen-enriched combustion inmetallurgical furnaces and kilns, and obtain the ?ue gas with high concentration (>70%) of CO

for the ?rst time in the industry, and realize the experiment of combustion under 40% oxygen-enriched ratio for the ?rst time in the industry.Steel-making

Independent-developed multi-functional online multi-point continuous casting machine rollergap measurement accuracy of ± 0.5mmHot rolling

Development of new energy high-grade silicon steel sheet di?erential control technologyIndependent-developed a set of intelligent and precise control models for hot rolling, with F1stand rolling force prediction accuracy of 95.5% and quality loss reduced by more than 59%.Cold rolling

The pioneering six-stands rolling series technology, reaching the international leading levelIndependent integration of a new generation of electric steel circular furnace, the pioneeringdecarburization and annealing high-speed uninterrupted coiling technology, hot straighteningand temper mill online laser scribing technology, etc., to break the foreign technology blockade.

Innovation AchievementsThe company continues to focus on the "Advanced equipment for the country," "First launching products," "Originaltechnology," focusing on key, difficult and new problems, set up a research project team, and concentrate onmaking up for the shortboard issues of development, solving the problem of "key strategic new iron and steelmaterials". In 2023, the company undertook 4 national projects and 2 provincial projects.

Debut products:

? 6 new products, including oriented electrical steel 15SQF1250,non-

orientation electrical steel ESW1021, and high-strength automotivesteel 980TBF

Debut processes

? Global Debut Process: the process and equipment technology forcold continuous rolling of high-grade electrical steel using a 6 stands6 highs rolling mill? Domestic Debut Process: multi-mode continuous rolling process forhot rolled ultra-thin and high-strength steel strips

debut products,

debut processes,

set of debutequipment

Debut Equipment

? Multi-functional on-line multi-point detection of casting machine roller gap

The world's ?rst production line

? Specializing in 100% thin gauge, high magnetic susceptibility oriented electrical steel.

96 97

Case: MCCR multi-mode fully continuous casting and rolling integrated technologyintegration and innovation

Case: High-performance oriented electrical steel special line successfully putinto production

In the context of the "dual-carbon" strategy, thin slabcontinuous casting and rolling as a representative of thenear net shape continuous casting technology, is one ofthe main directions of the optimization and reconstructionof the steel manufacturing process, is an important wayto achieve low carbon emissions, high efficiency, low-cost production of high-strength thin gauge of sheet/coil. In recent years, the endless rolling technology of hotrolled wide strip steel has been continuously developed, but there are still problems such as poor production?exibility, narrow product coverage and unstable quality control.The company integrates international and domestic advantageous resources, adopts independent innovationand integrated innovation to develop the new third-generation thin slab continuous casting and rollingtechnology (MCCR), which solves many problems, such as ?exible and stable production of multiple varietiesand gauges, high ef?ciency and low cost production of ultra-clean steel, high casting speed and high steel?ux in thin slab continuous casting, shape control of long roll-change cycle, surface quality and performanceconsistency, etc. The company has been authorized 34 invention patents, formulated 1 group standard andpublished 17 papers. In the past three years, the project has reduced carbon emissions by 595,000 tonnes, ledthe development of near net shapecasting technology, and made important contributions to the low-carbonand green development of ironmaking and steelmaking processes. The China Society for Metals organized theevaluation of the project, and the 11 judges unanimously agreed that the project has reached the internationalleading level.

On April 19, 2023, Zhixin Co. high-performance orientedelectrical steel line was successfully put into operation.The key equipment of the production line, annular furnace,was 100% independently integrated, independentlyinstalling and independently commissioning, with theequipment localization rate up to more than 95%, andthe operating efficiency of the facility was increased bymore than 30% compared with the original design of theforeign party, creating the best operating level of the same kind of unit in China; Through continuous research,comprehensive optimization, decarburization and annealing line process speed set a new record, productionefficiency increased by more than 27%; Hot straightening and temper mill process speed breakthroughbottleneck, production efficiency increased by 15%. The new production line provides strong support forShougang Co.'s electrical steel product innovation, research and development, and upgrading and iteration.The company's 15SQF1250 and 23SQGD085LS oriented electrical steel products debuted simultaneously.The new products quickly attracted widespread attention by virtue of their advanced design concepts andexcellent comprehensive performance, meeting customers' individualized needs, leading the industry'sdevelopment trend, and injecting new kinetic energy into the transformation of China's energy structure andthe advancement of the "dual-carbon" goal.On September 2, 2023, the company's high-performance oriented electrical steel products applied to UHV DCconverter transformer passed the technical appraisal, the series of products to reach the international leadinglevel of similar products, marking the Shougang Co. oriented electrical steel products will be more widelyused in the "Advanced equipment for the country".

Case: R&D and application of key technologies for high-efficiency and high-precision rolling of ultra-high-tensile steelRelying on the 2230mm cold rolling mill of Jingtang Co., the company hasindependently developed high-end cold rolling production process and equipmenttechnology for ultra-high-tensile steel products in response to a series of bottlenecksin the industry, such as difficulties in cold rolling of ultra-high-tensile steel, poorstability, low efficiency, and poor quality, and has realized the localization andintellectualization of the core technology and process control model of ultra-high-tensile steel high-precision cold rolling, which promotes independent innovation andupgrading of the iron and steel industry. The project has been authorized 26 inventionpatents. The results of the project have been applied to the products of many leadingautomobile companies. The results of the project have been accepted by China Ironand Steel Industry Association and assessed to be at the international advanced level,among which the high-ef?ciency and stable rolling technology of ultra-high-tensilesteel has reached the international leading level.

In 2023, the company won 21 of science and technology awards at the provincial and ministerial levels. It won 17metallurgical science and technology awards, including 6 ?rst-class awards, 3 second-class awards and 8 third-class awards; and 4 provincial science and technology progress awards, including 1 ?rst-class award, 1 second-class award and 2 third-class awards.

Key Technologies and Applications for Manufacturing Dual Phase Steel with

Enhanced FormabilityFirst prize of Metallurgical Science and Technology Award

Multi-production process synergistic optimization of ironmaking andsteelmaking processes and system energy e?ciency improvement technologyFirst prize of Metallurgical Science and Technology Award

Research and application of key technologies for e?cient utilization of waterresources in the entire process of iron and steel production

Third prize of Metallurgical Science and Technology Award

Integration of key technologies for carbon reduction emission in large-scalesintering machine based on carbon and oxygen reconstruction

Second prize of Metallurgical Science and Technology AwardDevelopment and application of key technology for e?cient manufacturing of

ultra-clean and highly homogenized thick slabs

First prize of Metallurgical Science and Technology Award

Continuous casting and rolling cooperative integration scheduling and

dispatching technology research and application

Third prize of Metallurgical Science and Technology AwardResearch and application of low-carbon and high-e?ciency monolithic

pouring repair technology for large blast furnace hearth

Second prize of Metallurgical Science and Technology Award

Development of a complete technology for the e?cient and high-quality

production of Beckenbach annular sleeve kilns

Third prize of Metallurgical Science and Technology Award

98 99

Intelligent ManufactureShougang Co. actively promotes digital and intelligent transformation, and carries out research and developmentaround intelligent factory construction, big data application, and development of intelligent testing equipment,

Promoting the applicationof intelligent equipment

Deepen on-site remotecentralized control

Optimizing job plan scheduling

Shougang Co. actively promotes theapplication and research and development ofindustrial robots, application scenario froma single point of application to the clusterdeployment , adherence to the "maturepromotion + independent research anddevelopment" dual-line drive strategy in theimplementation of the path. Shougang Co.has developed new application scenariossuch as strip steel surface grinding robot,steel coil labeling and adhesive tape multi-purpose robot, sintering pallet wheel onlinelubrication robot, ladle hot-spray-mendingrobot, etc., and added 25 sets of newindustrial intelligent robots throughout theyear.

Shougang Co. focuses on building "one-button" automatic control mode, perfectingproduction process control model, realizingprocess management change and technicalcapability enhancement, and buildingregional remote centralized control center.Jingtang Co. realizes the one-buttonproduction after adding hot metal intoconverter, and realizes 100% centralizedrolling operation and centralized control.Qiangang Co. has transformed the publicand auxiliary procedure such as oxygenproduction, gas production and dust removalin ironmaking into remote centralized controlaccording to the process, which has improvedthe control e?ciency and control scope.

Jingtang Co. researched and developedmodels of logistics balance, operationpriority, stacking position recommendation,overhead crane allocation, etc., andrealized intelligent scheduling of 11 typesof operations in slab warehouse. QiangangCo. realized dynamic tracking of ladles anddynamic scheduling of overhead cranes inthe whole process of steelmaking production,and automatic scheduling of hot rollingpickling line, leveling and straighteningoperation. Cold-R Co.'s intelligent schedulingwas put into operation on line, analyzinga large amount of historical data and real-time data through deep learning and datamining technology to predict the demand formaterials and energy consumption.

The company attaches great importance to data and privacy security, has established a comprehensive informationsecurity system as well as corresponding management measures, and continuously improves its technicalcapabilities in the ?eld of information security to protect the con?dentiality, integrity and availability of informationsystems, equipment and data, and to adhere to the security bottom line in all aspects.The company increases the cultivation of digital professional and technical talents, comprehensively improvesthe data-driven awareness of employees, periodical organizes data analysis races, encourages and drives moreprofessionals to dig deeper in the data, and cultivates composite talents who are both knowledgeable in theirprofessions and pro?cient in the application of data.

Data Analysis Race Results Presentation Event

? "Intelligent Manufacturing BenchmarkingEnterprise"? Selected as a Typical Case of Artificial

Intelligence Industry Empowerment inBeijing in 2023? "Shougang Co. empowers intelligent

manufacturing with digital workforce"selected as one of the Top 10 TypicalScenarios of National Enterprise Digitalization Application in 2023? "Dynamic Business Management for Steel Marketing Supply Chain" and "Shougang Co.

Logistics Integrated Management and Control Platform" are selected as typical scenarios ofdigital transformation in the steel industry in 2023.? "Integrated Safety Intelligent Management and Control to face the entire process of steelproduction " has been selected as a typical application scenario of intelligent manufacturingsolutions and digital transformation in the iron and steel industry in 2023.

In 2023,

Project AwardProduct Development and Operation Management of High-end Electrical Steel for Steel Enterprises to Build GlobalCompetitiveness

First Prize of the Thirtieth National EnterpriseManagement Modernization Innovation AchievementsConstruction and Enhancement of Core Competitivenessof Electrical Steel Based on Industry Chain Synergy

First Prize of Innovation Achievements of Modernizationof Metallurgical Enterprise Management in 2023"Empowering Intelligence with Digitaliztion" Big DataApplication Boosts Intelligent Decision-Making andManagement of Enterprises

First Prize of Innovation Achievements of Modernizationof Metallurgical Enterprise Management in 2023The Practice of Digital Transformation of Customer ServiceManagement of Steel Enterprises

Second Prize of Beijing Enterprise ManagementModernization Innovation AchievementsConstruction and Implementation of Intelligent EvaluationSystem for Equipment Management of Steel Enterprises

Third Prize of Innovation Achievements ofModernization of Metallurgical Enterprise Managementin 2023

accelerating the automation, digitization, networking and intelligentreform of key business processes, establishing a new pattern ofdigital transformation and intelligent manufacturing with "operationautomation, equipment intelligence, management and controldigitization, decision-making intelligence and service platform", strivingto become a benchmark for enterprise digital transformation.In accordance with the development path of intelligent manufacturingfrom individual parts to production line and then to the overall situation,the company focuses on promoting remote "one-button" productioncontrol at the level of operation automation; At the level of equipmentintelligence, we accelerate the evolution from single-point "intelligentequipment" to "intelligent unit" and "intelligent factory"; At the level ofcontrol digitization, collaborate to realize the digital transformation of"manufacturing system", "supply chain system" and "operation system";Accelerating the application of big data model and business knowledgeaccumulation iteration at the level of decision-making intelligence,and gradually transform from manual decision-making to intelligentdecision-making.

Improving quality process capabilitiesRealizing integrated logistics controlLighthouse Factory Digital Transformation

Shougang Co. carries out in-depth systemapplication optimization based on dataapplication and business modeling, improvesautomatic determination, disposal andanalysis capability of process and whole-process quality, and realizes whole-processtracking and analysis of steel defects andscars, performance correlation modeling, andautomatic determination of the surface qualityof hot-rolled automobile outer sheets. Thecompany actively promotes the application ofintelligent equipment, and has independentlyresearched and developed functionsfor automatic control and analysis andoptimization of the production process, suchas automatic judgment of ladle cleanliness andforecast of rolling force in hot rolling.

The intelligent logistics management andcontrol platform of Jingtang Co. was launched,and the technologies such as 5G, Internet ofThings and arti?cial intelligence were appliedto establish a full-scene logistics schedulingmodel, and all manual dispatching andmanual scheduling were cancelled, so thatthe logistics e?ciency in-plant increased by15% on average.completed the unmannedtransformation of cold rolled products, hotrolled products, five storage areas of 42overhead cranes of unmanned warehousingsystem ; 5 sets of yard stacking and reclaimingmachine to start the trial operation of theunmanned. Qiangang Co. realized thevisualized tracking of hot metal by usinglogistics tracking and positioning andtransportation ironmaking and steelmakingprocess connection model technology.

Aiming at world-class enterprises, Cold-R Co.started the construction of lighthouse factoriesand digital transformation work, completedthe ?rst phase of the project with 55 use caseoptimization iterations, the level of automationand intelligence of the production line has beensigni?cantly improved, the operation e?ciencyof warehousing and logistics continues tobe optimized, the quality of products andcustomer service continues to improve,and the level of fine management has beensteadily improved; 25 use cases for the secondphase launched as anticipated, achieving in-depth application in intelligent manufacturingscenarios.

The digitalization rate of equipmentsexceeds90%

"one-button productioncontrol" processes have beenachievedApplication of

sets of"industrial robots"Application of

RPA processrobots

unmanned intelligent storageareas have been built

100 101

Case: Cold-R Co. builds a lighthouse factoryLighthouse Factory integrates industrial internet, cloud computing, big data, 5G and other new technologiesof the fourth industrial revolution, which can effectively promote the improvement of production efficiencyand the energy conservation and emission reduction, and drive change of operation and management mode,representing the highest level of intelligent manufacturing and digitalization in the global manufacturing ?eld.In 2021, the Cold-R Co. started construction of lighthouse factory and digital transformation, aiming at world-class enterprises. By the end of 2022, the ?rst phase of lighthouse factory of 11 sub-projects and 55 use caseswere put into operation. The automation and intelligence level of production line were signi?cantly improved,the operation ef?ciency of warehousing and logistics was continuously optimized, and the product quality andcustomer service were continuously improved. In 2023, Cold-R Co. continued to optimize the use cases ofthe ?rst phase on the basis of the ?rst phase, rapidly promoted the construction of the second phase project,and developed 25 use cases such as intelligent production scheduling, intelligent inspection and testing, andintelligent control.

Research and Applicationof Casting-RollingCooperative Integrated Scheduling and

Dispatching TechnologyThird-class Prize of Metallurgical Science and

Technology Award

Construction and Application of IntelligentLogistics Control Platform of Steel EnterprisesOutstanding Award of the Iron and Steel IndustryTrack of the 3rd Intelligent Manufacturing

Innovation Competition

Intelligent Control of the Whole Process of Steel

Quality Based on Data Modeling Technology

The third intelligent manufacturing innovationCompetition iron and steel industry track

excellence award

Case: Intelligent control of hot metal transportation of Qiangang Co.

Case: Comprehensive intelligent security control of Jingtang Co.

Case: Smart logistics control of Jingtang Co.

Builing safety production science managementsystem as the goal, Jingtang Co. uses the digitaltransformation of thinking, applies 5G, GIS map,machine vision, big data analysis and other cutting-edge technology, relying on the company securityprofessional expert team, and builds the first first-class comprehensive intelligent management controlplatform for enterprise safety in China. This platformfaces all employees, covers all links, digitalizesbusiness processes and intelligently manages the site.Security comprehensive intelligent control platform based on "1 + N" (a control center, namely securityintegrated intelligent control platform, multiple system coordination) design mode, the formation of six level 1elements, 24 secondary elements, 187 level 3 functions, safety standardization, occupational health and safetymanagement system and the depth of the whole link. The project was selected the Recommended Catalogueof Intelligent Manufacturing Solutions in the Steel Industry (2023) issued by China Iron and Steel Association,and was highly recognized and praised by the national, provincial and municipal emergency managementdepartments.

Based on the construction of a unified transportation resource management system, with the goal ofminimizing logistics cost, and based on the micro-service architecture for intelligent manufacturing, JingtangCo. has independently developed and built an integrated logistics control platform with production processlinkage, transportation resources balance and logistics operation coordination. The integrated logisticsmanagement and control platform, for the first time in the industry, has realized the full amount, wholeprocess, dynamic and accurate tracking and information closed-loop of equipment, personnel, vehicles andgoods, and set up a model of intelligent logistics management and control in the steel industry.After the launch of the platform, the application effects are remarkable. Instead of manual dispatch andmanual scheduling, intelligent control of logistics integration and fine management of the whole processare realized, including automatic preparation of transportation plans, intelligent allocation of transportationcars, intelligent scheduling of transportation vehicles, intelligent planning of transportation routes, automaticcollection of transportation results, and automatic evaluation of transportation services. The averageresponse time of the system transportation demand is 10.09 seconds, the waybill distribution accuracy is

93.6%, and the overall logistics ef?ciency is improved by 15.0%.

●??

Realizing data integration and resource intensive management

●??

Realizing the reasonable and dynamic matching of transportation capacity resources and transportation plan

●??

Realizing the ef?cient coordination between logistics and warehousing operations

Hot metal dispatching is the core content of coordinating the productionorganization of ironmaking and steelmaking. Due to the high workintensity, the required control information, complex business process,production volatility and other reasons, it is the difficulty in theinformationization work of many steel mills.Through the establishment of the torpedo car tracking system,Qiangang Co. uses the logistics tracking and positioning technology tocomplete the real-time collection of the data of the transportation process of hot metal, realizing the visualtracking of the locomotive and the torpedo car, and the whole life cycle of the torpedo car is digitized andvisualized. After the system was launched, the hot metal temperature dropped by 89.8℃ in November, settinga new historical record. The turnover rate of the torpedo car was 6.3 times per day, ful?lling the hot metaltemperature control target and reaching the leading level of the industry.

●??

Transportation: it can grasp the dynamic of blast furnace and the transship station to accept the hot metal,

and dispatch the locomotive in advance to realize the ef?cient turnover of torpedo car;

●??

Production scheduling: using the visual interface to timely and accurately issue instructions to ensure the

ef?cient and safe connection between ironmaking and steelmaking;

●??

Production plan: according to the running trajectory of torpedo car, optimize the transship in advance to

effectively reduce the hot metal temperature drop.

102 103

Industry CollaborationThe company adheres to the ideal of intelligent manufacturing, service and win-win, plays the leading roleof technological innovation, and actively builds a high-quality industrial chain community. The company is animportant member unit of China Iron and Steel Association, China Metal Society, Beijing Metal Society and othersocial organizations, and constantly expands the depth and breadth of industry participation and communication. Standard GuidanceWith "inspection leading", "low-carbon leading", "intelligent leading" and "scientific and technologicalachievements transformation standards", Shougang Co. constantly improves the company's standardizationconstruction, promotes the pilotage role of standardized management in enterprises, and leads formulating newstandard for the development of the steel industry. By the end of 2023, the company has led or participated inissuing 125 group standards, industry standards, local standards, national standards and international standards.In 2023, the company participated in the formulation and issuing of 21 international, national, industry, and groupstandards, of which 6 took the lead.

International standard:

Has led or participated in issuing

international standardNational standards:

Has led or participated in issuing

national standardsLed or participated in issuing

national standards in 2023Industry standard:

Has led or participated in issuing

industry standardsLed or participated in issuing

industry standard in 2023

Local standard:

Has led or participated in issuing

local standardsGroup standard:

Has led or participated in issuing

group standardsLed or participated in issuing

group standards in 2023

Industry-university-research-application PlatformThe company actively promotes the integrated development of industry, university, research and application,strengthens the in-depth cooperation with universities, research institutions and upstream and downstreamenterprises, continues to strengthen the overall, basic and forward-looking process technology research, and givesfull play to the collaborative innovation role of the joint research and development platform.Cooperate with universities. The company strengthens the cooperation with University of Science andTechnology Beijing, Northeastern University, Tsinghua University and other scienti?c research institutes, promotesthe deep integration of universities and enterprises, establishes joint research centers, joint laboratories and expertworkstations on relevant research content, and fully integrates technical resources. Through project promotion,technical exchange, systematic teaching, exchange and discussion of the "unveiling the list" special competition,the synergistic effect is formed, excellent technical innovation team is cultivated, the rapid transformation ofresearch results is promoted, and the deep integration of education chain, innovation chain and industrial chainis realized. In 2023, the company has successively established expert workstations in the field of energy andenvironment, Wang Xinhua expert workstations and other cutting-edge talent training bases.

"Take the lead" special race exchange and discussionExpert workstation in the field of energy and environment

Expert workstationWork with the downstream clients. The company and its partners jointly build cross-industry, cross-regional andcross-enterprise joint laboratories and innovation studio alliance, hold product technology forum and "Shougang Day"technical exchange activities, set up joint projects, continuously deepen technical cooperation and promote key projects.Through technological innovation, collaborative and process breakthrough, realize all-round and multi-angle earlyintervention, ef?cient communication, mutual bene?t and win-win, and jointly provide solutions for the problem of "keystrategic new steel and steel materials" that restricts the development of the industrial chain.

Innovation Studio Alliance with Shandong Guanzhou

BYD Shougang Day activities

Alliance with BMW Brilliance

Innovation Studio

Alliance with China Oil Steel Pipe

Innovation Studio

Alliance with Geely Auto Innovation Studio

104 105

· 9joint research and development platforms withupstream and downstream enterprises and scienti?cresearch institutes·

expert workstations· Shougang-BMW Joint Studio was awarded the Beijing

Industrial (National Defense) Trade Union InnovationStudio Alliance Industry Communication

The company actively participates in or hosts various industry associations lecture and professional forums, buildsa communication platform, conducts in-depth discussions on strategic, overall and forward-looking major issues ofthe industry, provides services and communication and cooperation opportunities for industrial chain enterprises,and helps the transformation and upgrading of the industry.

Case: 2023 Shougang Plate Product Development Seminar

In order to jointly promote the coordinated and integrated development of the upstream and downstreamindustries of the company's plate products, jointly deepen the collaborative innovation mechanismof "industry, university, research and application", and jointly explore new development opportunitiesunder the situation of green and low-carbon economy, on November 9,2023 Shougang Co. Plate ProductDevelopment Seminar was held in Suzhou.More than 350 industry experts and partners, including China Iron & Steel Industry Association, ChinaAssociation of the Shipbuilding Industry, Iron & Steel Research Institute, Hefei General MachineryResearch Institute, Three Gorges Construction, Beijing Survey and Design Institute, East China Surveyand Design Institute, PetroChina, SINOPEC, China Railway Bridge Bureau, China Railway Bridge,Zhenhua Heavy Industry, CIMC Tongchuang, etc., attended this meeting.During the communication process, we discussed the cutting-edge technology and market trend of theplate, as well as how to deal with the future challenges and opportunities, which provided new idealsand power for the future development of the plate products, jointly promote the progress of the platetechnology, and promote the green, low-carbon and high-quality development of the industry.

Case: National industrial waste water recycling site exchange meeting andindustrial water-saving standards, technology promotion and exchange activitiesOn October 26,2023, the national industrial waste water recycling and utilization on-site exchangemeeting and industrial water-saving standards and technology promotion and exchange activities wereheld in Shougang Co. The conference was held simultaneously through the "online + of?ine", and morethan 2,000 representatives from the industrial wastewater recycling pilot industry parks, related industryassociations and scienti?c research institutes attended the conference.This activity is an important measure to accelerate the recycling of industrial wastewater, aims tofurther promote theIndustrial Water Efficiency Improvement Action Plan,Implementation Plan for IndustrialWastewater Recycling, strengthen leading of industrial wastewater recycling pilot demonstration, play arole of standard and technical equipment promoting industrial water ef?ciency, improve industrial wateref?ciency.As one of the pilot enterprises, Shougang Co. shared the "iron and steel industry ef?cient water andindustrial wastewater recycling pilot experience", introduced the ideal and practice of water systemmanagement, water saving technology application, shared experience and measures of water recyclingand water ef?ciency improvement, and introduced the next step work target to optimize the allocation ofwater resources and promote the intelligent water control.

Case: 2023 Ocean Development Caofeidian Forum

On October 26,2023, the "2023 Ocean DevelopmentCaofeidian Forum" was held in Caofeidian,Tangshan, Hebei Province, co-sponsored by theMarine Industry Branch of China Ocean EngineeringConsulting Association and the People's Governmentof Caofeidian District, Tangshan City, Hebei Province,and undertaken by Jingtang Co. and other units. Thetheme of the forum is "Strengthening the protectionand restoration of Marine ecology, promoting thehigh-quality development of Marine industry", andstudying the protection and restoration of Marineecology will be of great signi?cance to promoting thehigh-quality development of Marine industry.The Caofeidian Forum for Marine Development aims at scientifically develop and utilize the oceanand promote the coordinated development of the Beijing-Tianjin-Hebei region. It had successfullyheld several "Caofeidian Forum for Marine Development" and positioned the forum as a permanentinternational forum. Caofeidian Marine development in 2023 continued to use the advantages of high-end think-tank, industry leader, organize experts and scholars, Marine enterprises around Marineindustry high-end, Marine industry clustering, Marine industry greening and Marine industry Intelligentto conduct thematic discussions and communication, further enhance and promote the commondevelopment of the Beijing-Tianjin-Hebei region in the ?eld of Marine.

106 107

Public Welfare Actions

Youth Volunteer Service

"Learn from Lei Feng" activities entering the the community

---- electrical appliances maintenanceSelected and sent outstanding youngpeople to ensure major volunteer services,organized young people to participate in theWorld Youth Development Forum, ServiceTrade Fair, Post-disaster reconstructionof Beijing Fangshan District, global launchceremony of Shougang Oriented ElectricalSteel, Shougang Vocational Skills Raceand other volunteer services, and receiveda special "letter of thanks" from the YouthLeague Committee of the Group. At thesame time, it provides volunteer services forthe Innovation Alliance of Beijing IndustrialTrade Union, July 1 Commendationconference and other major activities

Organized the second session of "TopTen Most Beautiful Youth Volunteers"and "Excellent Youth Volunteers". For tenconsecutive years, we have carried out the"Learn from Lei Feng" volunteer servicemonth activity to practice the tasks of socialresponsibility and service center.

Organized and carried out thetheme of "strive for youth". Ittells the story of youth strugglewho actively participate in theconstruction of production line,process research, technologicalresearch, and innovative practice.

Rural Revitalization

The company has actively fulfilled its social responsibilities, expanded the achievements of poverty alleviation,implemented poverty alleviation through consumption, and helped rural revitalization. Actively participated in thebook donation activity of "Good Books with Growth" in Beijing, donated 2,000 books to Xinjiang Uygur AutonomousRegion, and helped the establishment of the ?rst undergraduate university in Hetian.The company purchased agricultural products such as potatoes from Yangyuan County, Zhangjiakou City, HebeiProvince, its counterpart in poverty alleviation areas, as well as jujubes, raisins and other sets of poverty alleviationproducts from Xinjiang Uygur Autonomous Region, with a total amount of 3.7088 million yuan and a population of24,435 people helped.

Urban IntegrationThe company starting from the life cycle of product manufacturing, continues to promote the ef?cient recyclingof resources, and has formed a new development mode of enterprise internal circulation, regional industrialcooperation, and urban and enterprise integration.In winter, waste heat from the blast furnace salg ?ushing water of Qiangang Co. provides heating for the plant,neighboring residential areas, schools, and hospitals. The heating area reaches more than 1.1 million squaremeters, covering over 9,000 households. This can save 31,500 tonnes of standard coal, reduce CO

emissions by78,600 tonnes, and SO

emissions by 477 tonnes.In other seasons, the recovery of waste heat from blast furnace slag flushing water, instead of the originalheating steam, is used for converter vaporization cooling devices, hot rolling heating furnace vaporization cooling,production of demineralized water for generator set boilers, and other energy recycling initiatives.

Total volunteer service time:

10,019 hoursAverage service time perperson:

3.2

hours

108 109

Key Performance Indicators Form

Economic IndicatorsUnits202120222023Operating revenueRMB 1,000134,034,486118,142,184113,761,444Pro?t before taxRMB 1,0009,799,4991,793,114900,320

Net pro?tRMB 1,0008,326,5311,509,415753,805Total taxRMB 1,0005,559,2063,053,6512,728,941

Environmental IndicatorsUnits202120222023Environmental investmentRMB million5481,122838Total investment in environmental protection in

the past 5 years

RMB million5,8316,2454,701Environmental pollution incidentsItem000Environmental ?nes during the reporting periodRMB 1,000000

Environment training coverage%100100100Environmental protection performanceevaluation (The highest grade: A)

AAAThe proportion of operations certi?ed by theenvironmental management system

%100100100The proportion of operations certi?ed by the

energy management system

%100100100Energy consumptionTonne standard coal13,676,223 13,842,868 13,898,235Electricity consumptionmillion kWh14,91815,13114,748Self-provided clean energy generation capacity(photovoltaic power generation)

MW13.6913.6913.70Annual generation of Self-provided cleanenergy (photovoltaic power generation)

MWh12,160 15,500 15,320Purchased green electricitymillion kWh—

719916Annual fresh water consumption1,000 tonnes63,18966,96868,787

Amount of water recycled1,000 tonnes3,936,4104,330,8674,601,360

Water recycled rate%98.67 98.73 98.73Particulate matter (PM) emissionsTonne5,715 4,908 5,398

Sulfur dioxides(SO

) emissionsTonne2,121 2,212 2,075Nitrogen oxides (NOx) emissionsTonne5,208 5,226 4,022Total wastewater dischargeTonne215,192434,709373,743

Environmental IndicatorsUnits202120222023Business impact of water-related eventsRMB 1,000000

Waste generation1,000 tonnes12,47712,38413,051

General waste generation1,000 tonnes12,02711,92112,669

General waste recycled1,000 tonnes12,02711,92112,669

Hazardous waste generation1,000 tonnes450463382

Hazardous waste recycled1,000 tonnes439453379Total amount of packaging materials used in

?nished products

Tonne84,195 85,400 87,664Total amount of reusable packaging materials

used in ?nished products

Tonne81,095 82,330 84,514Comprehensive utilization rate of solid waste%9999100

Comprehensive utilization rate of steel slag%100100100

Comprehensive utilization rate of dust%100100100

GHG emissions (Scope 1)tCO

e38,615,904 38,542,164 41,192,512GHG emissions (Scope 2)tCO

e4,179,058 3,936,676 2,786,781GHG emissions (Scope 1 & 2)tCO

e42,794,962 42,478,839 43,979,293

Social IndicatorsUnits202120222023Number of discrimination and harassment incidentsItem0 0 0Training ratio of employees for anti discrimination and

opposition to human rights violations

%100 100 100Number of incidents of child labor, forced labor, and

human tra?cking

Item0 0 0Total number of employeesPerson17,84618,60818,226Number of employees aged 30 or youngerPerson2,0981,8361,656

Number of employees aged 30-40Person9,7419,7599,244Number of employees aged 40-50Person3,4263,9444,452Number of employees aged 50 or olderPerson2,5813,0692,874

Number of male employeesPerson16,02416,67516,322Number of female employeesPerson1,8221,9331,904Proportion of male employees%89.7989.6190.64Proportion of female employees%10.2110.399.36

1.Note: Shougang Co. has been trading green electricity since 2022, so there is no such data in 2021.

110 111

Social IndicatorsUnits202120222023Occupational disease frequency%0 0 0Number of newly added occupational diseasesPerson0 0 0

Total investment in work safetyRMB million154137167Number of work safety accidentsNOS200Number of work-related deathsPerson000

Work injury rate%000

Working days lostDay21000Number of safety training

Person-times

173,189 193,985 225,891Safety training hoursHour648,412 801,222 928,362Safety risk prevention training coverage%100100100Percentage of products that need to be withdrawed and

recalled for safety and health reasons

%0 0 0Customer satisfactionScore98.4598.6298.76Total number of suppliersNOS3,4453,5583,246Proportion of suppliers in mainland China%100100100Total number of procurement orders on bidding

procurement platform

Item29,33528,86931,638Proportion of procurement orders on bidding

procurement platform

%98.6898.99100Number of ESG training activities for suppliersTime0165439Total ESG training hours for suppliersHour0165487

R&D investmentsRMB 1,0005,321,4875,386,0715,022,122Proportion of R&D investment to operating revenue%3.974.564.41

Number of R&D sta?Person2,2952,3422,481Proportion of R&D sta?%12.8612.5913.61Number of valid patentsPCS2,3082,9553,570Number of patents appliedPCS6858941,219Number of patents grantedPCS450654685Number of innovation patents grantedPCS182166229

Social IndicatorsUnits202120222023Number of employees with master degree or abovePerson1,549 1,497 1,631Number of employees with bachelor degreePerson7,165 7,895 7,935Number of associate employeesPerson5,821 5,809 5,573Number of employees at vocational schools and belowPerson3,311 3,407 3,087

Number of labor dispatched employeesPerson0 0 0

Number of part-time employeesPerson0 0 0Number of ethnic minority employeesPerson848856901Proportion of ethnic minority employees%4.75 4.60 4.86Proportion of employees belonging to vulnerable groups%11.5511.5311.25

Employee quit rate%0.730.701.23Quit rate of male employees%0.900.811.15Quit rate of female employees%1.050.920.35Quit rate of employees under 30 years old%2.141.872.58Quit rate of employees aged 30-40%2.441.610.74Quit rate of employees aged 40-50%0.090.170.12Quit rate of employees 50 years old or older%0.150.480.35

Signing rate of labor contracts%100 100 100Proportion of employees covered by collective agreements%100100 100Percentage of employees who regularly receiveperformance and career development examines

%100100100Social insurance coverage%100100100Return to work rate of female employees that took

parental leave

%—

100 91.79Retention rates of female employees that took parental

leave

%—

100 100Vocational training inputRMB 1,00019,45812,90821,041Training coverage%100 100 100Total training hoursHour1,260,719 1,316,073 1,867,841Per capita training hoursHour71 71 104Physical examination coverage%100100100

1. Note: the parental leave policy in Beijing and Hebei regions was promulgated and implemented in 2022, so there

is no relevant data for 2021.

112 113

Governance IndicatorsUnits202120222023

Proportion of independent directors%565650

Number of board meetingsTime121110Attendance rate of directors%100100100Number of meetings of Audit CommitteeTime222Number of meetings of Remuneration and

Assessment Committee

Time211Proportion of female employees in management%16.2716.5216.98Share-proportion of senior executives%0.0320.0290.0057

Stock pledge ratio%000Number of compliance training participantsPerson4,3898,76812,598

Compliance training coverage%254769Total time of compliance trainingHour9,55619,15628,954

Content Index

GRI Content Index

Statement of use

Shougang Co. has reported the information cited in this GRI content index for theperiod January 1st to December 31st, 2023 with reference to the GRI Standards.GRI 1 usedGRI 1: Foundation 2021

Disclosure Location

GRI 2: GeneralDisclosures 2021

2-1Organizational detailsAbout Us2-2

Entities included in the organization’s sustainability

reporting

About This Report2-3Reporting period, frequency and contact pointAbout This Report2-4Restatements of informationAbout This Report2-5External assurance?2-6Activities, value chain and other business relationships

About Us, Supply ChainManagement, Industry

Collaboration2-7EmployeesEmployee Protection2-8Workers who are not employees

Health and Safety, SupplyChain Management, Industry

Collaboration2-9Governance structure and compositionCorporate Governance2-10

Nomination and selection of the highest governance

body

Corporate Governance2-11Chair of the highest governance bodyCorporate Governance2-12Role of the highest governance body in overseeing the

management of impacts

Corporate Governance, ESG

Management2-13Delegation of responsibility for managing impactsCorporate Governance2-14

Role of the highest governance body in sustainability

reporting

ESG Management2-15Con?icts of interestIntegrity Ecology2-16Communication of critical concernsESG Management2-17Collective knowledge of the highest governance bodyESG Management2-18

Evaluation of the performance of the highest

governance body

?2-19Remuneration policiesEmployee Protection2-20Process to determine remunerationEmployee Protection2-22Statement on sustainable development strategyMessage From Chairman2-23Policy commitments

Integrity Ecology, Employee

Protection2-24Embedding policy commitments

Integrity Ecology, IndustryCollaboration2-25Processes to remediate negative impactsIntegrity Ecology2-26Mechanisms for seeking advice and raising concerns

ESG Management, Employee

Protection2-27Compliance with laws and regulationsEach chapter2-28Membership associationsIndustry Collaboration2-29Approach to stakeholder engagementESG Management2-30Collective bargaining agreementsEmployee Protection

114 115

Disclosure LocationGRI 3: Material Topics2021

3-1Process to determine material topicsESG Management3-2List of material topicsESG Management3-3Management of material topicsESG ManagementGRI 201: EconomicPerformance 2016

201-1Direct economic value generated and distributed

Key Performance IndicatorsForm, Annual Report201-2

Financial implications and other risks and

opportunities due to climate change

Low-carbon Development201-3

De?ned bene?t plan obligations and other retirement

plans

Employee Protection201-4Financial assistance received from governmentAnnual ReportGRI 203: IndirectEconomic Impacts2016

203-1Infrastructure investments and services supported

National Strategic ProjectsParticipation, Public Welfare

Actions203-2Signi?cant indirect economic impactsPublic Welfare ActionsGRI 204: ProcurementPractices 2016

204-1Proportion of spending on local suppliersKey Performance Indicators FormGRI 205: Anti-corruption 2016

205-1Operations assessed for risks related to corruptionIntegrity Ecology

205-2

Communication and training about anti-corruption

policies and procedures

Integrity Ecology

205-3Con?rmed incidents of corruption and actions takenIntegrity EcologyGRI 206: Anti-competitive Behavior2016

206-1

Legal actions for anti-competitive behavior, anti-trust,

and monopoly practices

Integrity Ecology

GRI 207: Tax 2019

207-1Approach to taxRisk Management

207-2Tax governance, control, and risk managementRisk Management

207-3Stakeholder engagement and management of concerns

related to tax

Risk Management

207-4Country-by-country reporting?GRI 301: Materials 2016

301-1Materials used by weight or volume?

301-2Recycled input materials used?

301-3Reclaimed products and their packaging materialsKey Performance Indicators Form

GRI 302: Energy 2016

302-1Energy consumption within the organizationKey Performance Indicators Form

302-2Energy consumption outside of the organization?

302-3Energy intensity

Key Performance Indicators

Form

302-4Reduction of energy consumptionUltimate Energy E?ciency

302-5

Reductions in energy requirements of products and

services

Ultimate Energy E?ciencyGRI 303: Water andE?uents 2018

303-1Interactions with water as a shared resourceWater Rescource Management303-2Management of water discharge-related impactsWater Rescource Management303-3Water withdrawalWater Rescource Management303-4Water dischargeWater Rescource Management303-5Water consumptionWater Rescource ManagementGRI 304: Biodiversity2016

304-1

Operational sites owned, leased, managed in, oradjacent to, protected areas and areas of highbiodiversity value outside protected areas

Biodiversity304-2

Signi?cant impacts of activities, products and services

on biodiversity

Biodiversity304-3Habitats protected or restoredBiodiversity

Disclosure Location

GRI 305: Emissions2016

305-1Direct (Scope 1) GHG emissionsLow-carbon Development305-2Energy indirect (Scope 2) GHG emissionsLow-carbon Development305-3Other indirect (Scope 3) GHG emissions?305-4GHG emissions intensityKey Performance Indicators Form305-5eduction of GHG emissionsLow-carbon Development305-6Emissions of ozone-depleting substances (ODS)

The company's productionand operation activities do not

generate ODS305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other

signi?cant air emissions

Environmental ManagementGRI 306: Waste 2020

306-1Waste generation and signi?cant waste-related impactsEnvironmental Management306-2Management of signi?cant waste-related impactsEnvironmental Management306-3Waste generatedEnvironmental Management306-4Waste diverted from disposalEnvironmental Management306-5Waste directed to disposalEnvironmental ManagementGRI 308: SupplierEnvironmentalAssessment 2016

308-1

New suppliers that were screened using environmental

criteria

Supply Chain Management308-2

Negative environmental impacts in the supply chain

and actions taken

Supply Chain ManagementGRI 401: Employment2016

401-1New employee hires and employee turnoverKey Performance Indicators Form401-2

Bene?ts provided to full-time employees that are not

provided to temporary or part-time employees

Employee Protection401-3Parental leaveKey Performance Indicators Form

GRI 403: OccupationalHealth and Safety 2018

403-1Occupational health and safety management systemHealth and Safety403-2

Hazard identi?cation, risk assessment, and incident

investigation

Health and Safety403-3Occupational health servicesHealth and Safety403-4Worker participation, consultation, and communication

on occupational health and safety

Health and Safety403-5Worker training on occupational health and safetyHealth and Safety403-6Promotion of worker healthHealth and Safety403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

Health and Safety403-8

Workers covered by an occupational health and safety

management system

Health and Safety403-9Work-related injuriesKey Performance Indicators Form403-10Work-related ill healthHealth and SafetyGRI 404: Training andEducation 2016

404-1Average hours of training per year per employeeTalent Development404-2

Programs for upgrading employee skills and transition

assistance programs

Talent Development404-3

Percentage of employees receiving regular performance

and career development reviews

Talent DevelopmentGRI 405: Diversity andEqual Opportunity2016

405-1 Diversity of governance bodies and employees

Corporate Governance,

Employee ProtectionGRI 406: Non-discrimination 2016

406-1

Incidents of discrimination and corrective actions

taken

Employee ProtectionGRI 407: Freedomof Association andCollective Bargaining2016

407-1

Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk

Employee Protection

116 117

Disclosure Location

GRI 408: Child Labor2016

408-1

Operations and suppliers at signi?cant risk for

incidents of child labor

Employee ProtectionGRI 409: Forced orCompulsory Labor2016

409-1

Operations and suppliers at signi?cant risk for

incidents of forced or compulsory labor

Employee ProtectionGRI 410: SecurityPractices 2016

410-1

Security personnel trained in human rights policies or

procedures

?GRI 413: LocalCommunities 2016

413-1

Operations with local community engagement, impactassessments, and development programs

Public Welfare Actions, Urban

Integration413-2

Operations with signi?cant actual and potentialnegative impacts on local communities

The company has not identi?edany operations that have actualor potential signi?cant negativeimpacts on the local communityGRI 414: SupplierSocial Assessment2016

414-1New suppliers that were screened using social criteriaSupply Chain Management414-2Negative social impacts in the supply chain and actions

taken

Supply Chain ManagementGRI 416: CustomerHealth and Safety 2016

416-1

Assessment of the health and safety impacts of product

and service categories

Quality Assurance416-2

Incidents of non-compliance concerning the health and

safety impacts of products and services

Quality AssuranceGRI 417: Marketing andLabeling 2016

417-1

Requirements for product and service information and

labeling

Customer Service417-2

Incidents of non-compliance concerning product and

service information and labeling

Customer Service417-3

Incidents of non-compliance concerning marketing

communications

Customer ServiceGRI 418: CustomerPrivacy 2016

418-1

Substantiated complaints concerning breaches of

customer privacy and losses of customer data

Customer Service304-4,411-1,415-1

The core business of the company has little relevance or importance to this indexinformation, therefore they will not be disclosed2-21,202-1,202-2,405-2

Due to information con?dentiality requirements, they will not be disclosed to thepublic temporarily

SDGs IndexSDGsBrief introductionLocation1No Poverty: End poverty in all its forms everywhere.Public Welfare Actions

Good Health and Well-being: Ensure healthy lives and promote well-being

for all at all ages.

Employee Protection

Quality Education: Ensure inclusive and equitable quality education and

promote lifelong learning opportunities for all.

Public Welfare Actions

Gender Equality: Achieve gender equality and empower all women and

girls.

Employee Protection

Clean Water and Sanitation: Ensure availability and sustainable

management of water and sanitation for all.

Water Rescource Management,

Environmental Management

A?ordable and Clean Energy: Ensure access to a?ordable,reliable,sustainable and modern energy for all.

Ultimate Energy E?ciency,Low-carbon Development,

Green Products

Decent Work and Economic Growth: Promote sustained, inclusive andsustainable economic growth, full and productive employment and decent

work for all.

Employee Protection

Industry, Innovation and Infrastructure: Build resilient infrastructure,promote inclusive and sustainable industrialization and foster innovation.

Intelligent Manufacturing

SDGsBrief introductionLocation10Reduced Inequalities: Reduce inequality within and among countries.Employee Protection

Sustainable Cities and Communities: Make cities and human settlements

inclusive,safe, resilient and sustainable.

Urban Integration

Responsible Consumption and Production: Ensure sustainable consumption

and production patterns.

Quality Assurance, Green

Products

Climate Action: Take urgent action to combat climate change and its

impacts.

Low-carbon Development.Supply Chain Management

Life Below Water: Conserve and sustainably use the oceans, seas and marine

resources for sustainable development.

Biodiversity

Life on Land: Protect, restore and promote sustainable use of terrestrialecosystems, sustainably manage forests, combat deserti?cation, and halt

and reverse land degradation and halt biodiversity loss.

Biodiversity

Peace, Justice and Strong Institutions: Promote peaceful and inclusivesocieties for sustainable development, provide access to justice for all andbuild e?ective, accountable and inclusive institutions at all levels.

Integrity Ecology

Partnerships for the Goals: Strengthen the means of implementation and

revitalize the Global Partnership for Sustainable Development.

Industry Collaboration

Feedback Form

Dear readers,Thank you for taking the time to read the 2023 Shougang Co. Sustainability Report! We attachgreat importance to and look forward to hearing your feedback on this report. Your opinions andsuggestions are an important basis for us to continue to promote sustainable development man-agement and practice. We wold appreciate if if you provide valuable comments and suggestionsby completing relevant questions in the feedback form, and please sent it back to us in the follow-ing way:

Board Secretary O?ce of Beijing Shougang Co., Ltd.Contact Add: No. 99 Shijingshan Road, Shijingshan District, Beijing, PRCTel: 010-88293727E-mail: sggf@sgqg.comPostcode: 100043Fax: 010-88292055

1. Which type of stakeholder do you belong to?

□ Shareholders and investors?□ Company management?□ Employees?□ Customers

□ Suppliers?□ Government and regulatory agencies?□ Community organizations, non-gov-

ernmental organizations?□ Industry partners, industry associations, and research institutions?

□ Media?□ Other (please specify)

2. Please comment on the response and disclosure of this report to the concerns of stakeholders:

□ Great?□ Good?□ General?□ Poor?□ Very poor

3. Please comment on the clarity, accuracy, and completeness of the information, indicators, and

data disclosed in this report:

□ Great?□ Good?□ General?□ Poor?□ Very poor

4. Please comment on the readability of this report:

□ Great?□ Good?□ General?□ Poor?□ Very poor

5. Please make a comprehensive evaluation of this report:

□ Great?□ Good?□ General?□ Poor?□ Very poor

Open Questions:

1. What suggestions do you have for Shougang Co.'s work related to sustainable development

work and report release?

2. What de?ciencies do you think exist in this report?

3. What else sustainable development information do you think needs to be disclosed in this report?

Embrace the mission Lead the future

Beijing Shougang Company Limited

Sustainability Report 2023

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Beijing Shougang Company LimitedSustainability Report 2023


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