2024 Sustainability Report
About this reportThis report is the second sustainability report released by Inner Mongolia Bao Gang United Steel Co., Ltd., followingfive consecutive years of publishing social responsibility reports. The report elaborates on the Company's efforts inenvironmental protection, social responsibility, and corporate governance in 2024, responding to the expectations andconcerns of stakeholders.Reporting periodThe reporting period covers January 1, 2024, to December 31, 2024, with some content extending beyond this range.Report scope
The report covers Inner Mongolia Bao Gang United Steel Co., Ltd., its subsidiaries, branches, and subordinates. Forease of expression and reading, “Inner Mongolia Bao Gang United Steel Co., Ltd.” is also referred to as “Bao GangUnited Steel”, “the Company”, or “we” in this report.Data sources and reliability assurance
The information and data disclosed in this report are sourced from the Company's ofcial documents and statisticalreports, reviewed by relevant departments. The Company pledges that the report contains no false records ormisleading statements, and bears liabilities for the authenticity, accuracy and integrity of the report.
Report accessibilityYou can read the electronic version of this report by visiting the Investor Relations—Social Responsibility Reportsection on the website of Inner Mongolia Bao Gang United Steel Co., Ltd. at https://www.baoganggf.com, or bydownloading it from the website of Shanghai Stock Exchange at https://www.sse.com.cn/.
Basis of preparation
Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 6.0) of China EnterpriseReform and Development Society, Responsibility Cloud Research InstituteSelf-regulatory Guidelines for the Companies Listed on the Shanghai Stock Exchange No. 4 - Formulation ofSustainable Development Report of Shanghai Stock ExchangeGlobal Reporting Initiative (GRI Standards) of Global Sustainability Standards BoardUnited Nations 2030 Sustainable Development Goals (SDGs)Guidelines for State-owned Enterprises to Better Fulll Social Responsibilities of SASAC of the State Council
ESG managementFuture prospectsAnnex
Responsibility issue I:
Strengthening the brand andforging new materials for majornational equipmentResponsibility issue II:
Empowering intelligence, andactivating a new engine for thesteel industryResponsibility issue III:
Rare treasure house, broadprospects for diversieddevelopment
2024 Sustainability Reportof Inner Mongolia Bao Gang United Steel Co., Ltd.
Contents
About this reportAddress by chairmanAbout Bao Gang United SteelNew glory - 2024 responsibility events
Strengthen environmental managementCombat with climate changePromotion of green productionProtect ecological balance
Customer orientation, quality rstEmployee developmentDeepen industry cooperationEnhance people's well-being
Adhering to the leadership of Party buildingStandardize corporate governanceImprovement of compliance systemInnovation-driven development
Environment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
GovernancePromote stability like a rock
0405
2024 Sustainability ReportAddress by chairman
2024 marks the 75th anniversary of the founding ofthe People's Republic of China, a crucial year forachieving the goals of the 14th Five-Year Plan, the70th anniversary of the establishment of BaogangGroup, and a year in which Bao Gang United Steelstrives to break through under the severe test ofa complex and ever-changing economic situationand a declining steel market. Over the past year,we have adhered to the guidance of Xi JinpingThought on Socialism with Chinese Characteristicsfor a New Era, fully implemented the spirit ofthe 20th National Congress of the CPC and theSecond and Third Plenary Sessions of the 20thCentral Committee, firmly grasped the main lineof forging a strong sense of community for theChinese nation, and resolutely advanced alongthe path of high-quality development.This year, we have anchored the “dual carbon”goals and built a highland for ecologicalcivilization. We have fulfilled our politicalresponsibility to build an important ecologicalsecurity barrier in northern China, completedcarbon footprint calculations for all steelproducts, successfully released a green and low-carbon brand and a low-carbon emission steelprocess roadmap, completed ultra-low emissiontransformations, explored paths for energyconservation and emission reduction, and becamethe rst steel enterprise in the region to pass theA-level performance evaluation for heavy pollutionweather; vigorously promoted the projectswith “extreme energy efficiency”, becoming acultivation enterprise for the industry's “Dual
Carbon Best Practice Energy Efciency Benchmark Demonstration Plant”; comprehensively advanced the green process,successfully rolled automotive steel and alloy steel with high scrap ratio, and increased the “green content” of steelproducts.This year, we have adhered to a people-oriented approach and strengthened our sense of responsibility and mission. Wehave accelerated the pace of adjustment towards high-end production lines and products, to meet market demand for high-performance steel and continuously enhancing brand inuence; committed to building a harmonious and win-win employeerelationship ecosystem, expanded “1 center + 4 stations” medical services, and continuously improved the employeecare service system; on the basis of mutual respect and win-win cooperation, we have elevated strategic partnerships toa new level, with “jointly creating a new model for central-local cooperation and enhancing the resilience and industrialcompetitiveness of the coal coking chemical industry chain” being selected as an excellent case of central-local cooperation;promoted the spirit of dedication, cultivated new trends and styles of the times, and conducted 467 volunteer serviceactivities throughout the year, with 13,780 participants in volunteer activities.This year, we have enhanced governance and remained steadfast in our progress. We created the party-building brand “IronShoulders Bear the Mission, Furnace Fire Reects the Original Aspiration”, leading high-quality development with high-quality party-building; achieved effective connection and standardized operation of corporate governance, the informationdisclosure received the highest A-level (excellent) evaluation from the Shanghai Stock Exchange, with the ESG rating risingto “A-level”; carried out comprehensive reforms of state-controlled listed companies, accelerating the transformationtowards innovation-driven and reform-empowered development; placed technology innovation in a critical position, withannual R&D investment intensity exceeding 5%, creating more favorable conditions for the continuous emergence of highlyskilled talents.Although dreams may seem distant, they can be achieved through relentless pursuit; although aspirations may bechallenging, they can be realized with unwavering perseverance. Standing at the new starting point of the 70th anniversaryof Baogang Group and based on the new height of fullling the mission and tasks of state-owned enterprises, we will unitemore closely around the Party Central Committee with Comrade Xi Jinping at its core, and with full spirit, set sail again onthe new journey lled with innite glory!
Chairman of Bao Gang United Steel Co., Ltd.
Address by chairman
0607
2024 Sustainability ReportAbout Bao Gang United Steel
Company overview
Company culture
Bao Gang United Steel was established in 1954. It is one of the 156 key projects during the First Five-Year Plan, and the onlysteel enterprise for which Premier Zhou Enlai personally cut the ribbon for its production. The historical story of “unitingefforts to build Bao Gang United Steel” mentioned by General Secretary Xi Jinping originated here, making Bao GangUnited Steel's development highly notable and far-reaching. In 1999, to create a steel listed company, Bao Gang UnitedSteel established Inner Mongolia Bao Gang United Steel Co., Ltd. mainly with rolling assets, which was ofcially listed on theShanghai Stock Exchange on March 9, 2001, with the stock code 600010. Over the 20 years since its listing, Bao Gang UnitedSteel’s total assets have increased 20-fold, with equity nancing reaching RMB 45.935 billion, and its market capitalizationhas grown from RMB 8 billion to a peak of over RMB 230 billion, making it an important steel industrial base in China.Bao Gang United Steel leverages the resource endowment of co-existing iron and rare earth in Bayan Obo, creating the unique“rare earth steel” feature. Its products are widely recognized and praised by downstream users for their good ductility, wearresistance, corrosion resistance, low-temperature resistance, toughness, and tensile strength. The products are extensively used innational key projects such as the Beijing-Shanghai High-Speed Railway, the Qinghai-Tibet Railway, the Three Gorges Dam Project,Beijing Daxing International Airport, and the Sino-Russian Eastern Natural Gas Pipeline, and areexported to 60 countries and regions including Europe and America. After years of development,in 2024, tthe brand value of Bao Gang United Steel reached RMB 26.159 billion, an increase ofRMB 1.549 billion compared to 2023. It was awarded the 2024 Inner Mongolia Brand ConstructionBenchmark Enterprise, marking its seventh consecutive year on the list. It was also included inthe 2024 List of Advanced Manufacturing Enterprises and selected as one of the “2024 ChinaExcellent Steel Enterprise Brands”.Currently, Bao Gang United Steel has a crude steel production capacity of 17.5 million tons,It can produce key products such as heavy rails, wind power plates, wear-resistant steel, zinc-aluminum-magnesium coated steel plates, pipeline steel, home appliance steel, automotivesteel, and oil pipes. The overall equipment level is internationally leading, and thus forming aproduction pattern of four high-quality lines: plates, pipes, rails, and wires.
Looking to the future, Bao Gang United Steel will adhere to the dual main businesses of “steel + resource development”,grasp the new development stage, adhere to new development concepts, and integrate into the new development pattern.It will unswervingly follow a new path of high-quality development guided by ecological priority and green development,fully promote the construction of “carbon peaking and carbon neutrality” planning projects, and strive to achieve an annualproduction of 14.62 million tons of iron, 15.64 million tons of crude steel, 14.76 million tons of commodity billets, 390,000tons of rare earth concentrate, and 650,000 tons of uorite concentrate by 2025. Achieve a product structure characterizedby “high-quality steel + series rare earth steel”, focus on the industrial chain with “cold rolling deep processing + steel pipedeep processing” as the key, aim to become a leading domestic comprehensive supplier and service provider of rare earthsteel new materials, adopt the operation mode of “deep potential tapping + reform and innovation”, focus on rening andoptimizing, achieve rst-class comprehensive competitiveness in the domestic market, and become a practitioner of thebrand-oriented, high-end, green, and intelligent transformation and development of China's steel industry.
With CSP, wide and thick plate,internationally advanced 2250mm hot continuous rolling, andsupporting cold rolling continuousannealing and galvanizingproduction lines, and a capacity of
9.7 million tons, the Company is
the largest plate production basein the central and western China.
With 2 world-class large-scaleuniversal rolling productionlines and waste heat quenchingproduction lines, and a capacity of
2.1 million tons, the Company is
the world's highest-equipped andlargest high-speed rail productionbase.
With 5 seamless pipe productionlines of 159 mm and 460 mmdiameters, and an annualproduction capacity of 2 milliontons, the Company is one of themost comprehensive seamlesspipe production bases in China.
With 3 production lines for stripsteel, and a capacity of 2 milliontons, the Company is an importanthigh-end wire rod productionbase in the northwest China.
Plates
Building the world’s best rare earth steelnew material production base, and anexcellent supplier of high-quality rareearth steel new materials
Persistent and Dauntless, Above andBeyond
Distinctive Steel, Green Homeland
Dedicate High-Quality Steel, Create aBetter Life Together
Company
goal
Company
missionCompany
spirit
Company
spiritCompany
vision
About Bao Gang United Steel
Main business
High-quality steel
+
series rare earth
steel
Productstructur
Cold rolling deep
processing+
steel pipe deep
processing
Industrialchain
Seamlesssteel pipeWires
Heavy rail
proles
0809
1999
2001
2017
2012
2016
2023
2009
2015
2018
2024
Inner Mongolia Bao Gang UnitedSteel Co., Ltd., Ltd. Was established.
The Company was ofcially listed on theShanghai Stock Exchange.
The Company acquired the rare earth and niobiumselection-related assets of the Bayan Obo ResourceComprehensive Utilization Project of BaogangGroup's Baoshan Mining Co., Ltd., accelerating thedevelopment and utilization of the Company's tailingspond resources.
The Company acquired 100% equity of Barun MiningCo., Ltd. held by Baogang Group and the miningrights of the West Mine of Bayan Obo Iron Ore.
The rare earth steel plate project was fullycompleted, which marked a milestone in thetransformation and upgrading of the steelindustry in the autonomous region.
An 800,000-ton uorite beneciation production line and auorochemical production line were built, achieving large-scale development and utilization of uorite resources and
deep processing of uorite resources.
The Company’s annual capacity of steelreached 10 million tons, joining the ranksof domestic steel enterprises with anannual output of over 10 million tons.
The Company acquired the mineralprocessing-related assets of BaogangGroup, the iron selection-relatedassets and tailings pond assets ofthe Bayan Obo ComprehensiveUtilization Project.
The Company acquired the assetsof China Northern Rare Earth'srare earth concentrator, increasingthe production capacity of rareearth concentrate to 450,000 tons, which also resolved the issue ofcompetition between the two companies.
The Company adhered to the productstructure adjustment strategy of “high-qualitysteel + series rare earth steel”, with sales ofvariety steel reaching 8.1634 million tons, ayear-on-year increase of 9.65%, and rare earthsteel production exceeding 1.5 million tons,reaching a record high.
Company history
Organizationalstructure
Board ofShareholders
Board of
DirectorsBoard ofSupervisorsPartyCommittee
Management
level
General AffairsDepartmentYouth LeagueCommitteeSecurities FinancingDepartmentLabor union
Strategy and ESG Committee
Audit committeeNomination, Remunerationand Assessment Committee
Discipline InspectionCommissionHR and OrganizationDepartmentAudit DepartmentFinance DepartmentPlanning DepartmentMarketing CenterTechnology CenterSteel Research InstituteChief Engineer OfceManufactureDepartmentLegal AffairsDepartmentSafety ManagementDepartmentEquipment EngineeringDepartmentLow-Carbon EnergyManagement Center
About Bao Gang United Steel2024 Sustainability Report
1011
New glory - 2024 responsibility events2024 Sustainability Report
Taking the opportunity of celebrating the 70th anniversary, BaoGang United Steel further promoted the deep integration of partybuilding and production and operation, creating the party-buildingbrand of Bao Gang United Steel “Iron Shoulders Bear the Mission,Furnace Fire Reects the Original Aspiration”.
In August 2024, the country’s rst 100-meter rail crane remote controlproject was successfully implemented in Bao Gang United Steel andhas been ofcially put into use in the rail and beam factory.
On September 24, 2024, the 2024 Bayan Lecture Hall - High-endForum on the Application of Rare Earths in Steel and the “high-quality steel + series rare earth steel” Strategic Product Seminar washeld by Bao Gang United Steel at Baogang Hotel.
In December 2024, Bao Gang United Steel's brand “BISG” was onthe list for seven consecutive years with a brand value of RMB 26.159billion. Bao Gang United Steel was named a benchmark enterprisefor brand building in Inner Mongolia.
Bao Gang United Steel has newly built four occupational healthand medical stations for rare earth steel, rail beams, ironmaking,and steelmaking, forming a medical service model with the factoryoutpatient clinic as the center + four stations, enabling the factoryto organize emergency rescue and emergency first aid in a timelymanner in the event of an emergency.
On August 21, 2024, 20 sets of 40 carriages loaded with 25-meterrail products were successfully dispatched under the traction oflocomotives. This is the first shipment organized by Bao GangUnited Steel in accordance with the new 25-Meter Rail Loading Plan.
In November 2024, Bao Gang United Steel issued the GroupStandard for High-Strength Steel Plates with Low Welding CrackSensitivity for Engineering Machinery and entered the formalimplementation stage.
In December 2024, Bao Gang United Steel’s “Pipe ProcessingIntelligent Coupling Line Application Case of Steel Pipe Branch”was successfully selected into the 2024 List of Typical ApplicationCases of Advanced Computing Empowering New Quality ProductiveForces. This project is the only project selected in the Inner MongoliaAutonomous Region and is also one of the four projects selected inthe steel industry.
On January 30, 2024, Bao Gang United Steel was awarded thehonorary title of “Dual Carbon Best Practice Energy EfficiencyBenchmark Demonstration Plant” for the 2023 Steel Projects withExtreme Energy Efficiency. On September 24, Bao Gang UnitedSteel’s green and low-carbon brand and low-carbon emission steelprocess roadmap were ofcially released.
In July 2024, Bao Gang United Steel's independently completed“Seamless Steel Pipe Packaging System Upgrade and OptimizationResearch” and its participation in the completion of “key technologydevelopment and application of high-quality rare earth intermediatealloy preparation” won the second prize of the Metallurgical Scienceand Technology Award.
In June 2024, thanks to its excellent management performance inESG, Bao Gang United Steel's ESG rating jumped two levels from“BB” to “A”.
In January 2024, 8 products including low-alloy structural steelmedium-thick plates declared by Bao Gang United Steel werenamed “Golden Cup Quality Products” for the physical quality ofmetallurgical products.
On May 9, 2024, Bao Gang United Steel held a completion ceremonyfor the carbon reduction and pollution reduction upgrading andtransformation project of the non-oriented silicon steel annealingfurnace of the rare earth steel cold-rolled plate plant.
In July 2024, the scientic and technological achievement of “newgreen and low-carbon new technology and equipment for fully drysensible heat recovery of converter gas” co-developed by Bao GangUnited Steel successfully passed the evaluation of the evaluationcommittee. This scientific and technological achievement hasreached the international leading level.
In August 2024, Bao Gang United Steel was ofcially approved to beincluded in the 2024 List of Advanced Manufacturing Enterprises,which means that Bao Gang United Steel has been recognizedby national authoritative departments in terms of cutting-edgetechnological advancement and exemplary development quality.2024 Chronicle
New glory - 2024 responsibility events
Responsibility issue
1213
2024 Sustainability Report
Strengthening the brand and forging new materialsfor major national equipment
Responsibility issue I
Bao Gang United Steel has made accelerating the development of new quality productive forces and steadily promotinghigh-quality development its key work tasks, placing “innovation” at the core position, implementing a rigid growthmechanism for R&D investment, constantly activating innovation systems and mechanisms, expanding the proportion ofmid- and high-end products, and is committed to achieving key breakthroughs in the eld of rare earth steel new materials.
Bao Gang United Steel actively participates in national key engineering projects, with products widely used in major nationalprojects such as the “national treasures” FAST radio telescope sightseeing bridge, the Beijing-Shanghai High-SpeedRailway, the Qinghai-Tibet Railway, the Three Gorges Project, the “China Lunar Exploration Program”, and the BeijingDaxing International Airport. This not only represents Bao Gang United Steel's solid footprint in the national constructionjourney but also highlights its exceptional quality and strong capabilities, laying a solid foundation for national developmentand modernization.In October 2024, based on long-term technological accumulation, theCompany innovatively researched and developed rare earth additivesand their application technologies, and successfully launched China'sfirst new rare earth welding wire steel product, achieving significantimprovements in the drawing and welding properties of the new rareearth welding wire steel, providing new materials for China's weldingelds.
?Rare earth welding wire steel
In August 2024, the Company successfully rolled out the first 1,180MPa cold-rolled dual-phase steel coil, marking a new era in ultra-highstrength steel products. This achievement broke through the strengthlimit design capability of the rare earth steel cold-rolled plate plant’sproduct catalog, signifying a milestone in the Company's cold-rolledproduct variety adjustment.
?Ultra-high strength cold-rolled dual-phase steel
In December 2024, the Company successfully developed and rolled outrare earth atmospheric corrosion resistant steel with high strength andhigh weather resistance. This steel effectively resists various corrosivemedia in the atmosphere, achieving a qualitative leap in corrosionresistance while reducing resource waste and environmental pollution,showcasing the Company's strong capabilities in rare earth steeltechnology innovation and product development.
?Enhanced weather resisting steel
Nationwide Launch of Rare Earth Welding Wire Steel
1,180 MPa Cold-Rolled Dual-Phase Steel
Rare Earth Weather Resisting Steel
Relying on the unique advantage in “rare earth steel”, Bao Gang United Steel has always adhered to the goal of “the world’sbest rare earth steel new material production base, and an excellent supplier of high-quality rare earth steel new materials”for many years, and continuously deepened the strategic results of “high-quality steel + series rare earth steel”. “Rare earthsin steel make it harder, tougher and stronger” has become the Company's brand logo. In 2024, Bao Gang United Steelcontinued to promote the plan of launching new products. 15 new products were launched for the rst time in the industry andBao Gang United Steel, with cumulative sales of 18,900 tons and new economic benets of RMB 8.1365 million.
Respond to strategy, create extraordinary projects
Case: Bao Gang United Steel successfully delivered 500 meters of high-quality rail and pioneered laying onthe Jining-Datong-Yuanping High-Speed Railway
60N U71MnH G Rail Laying Site
Focus on innovation and research high-end materials
The Jining-Datong-Yuanping High-Speed Railway is a keyconstruction project in China's 14th Five-Year Plan and animportant part of the “eight verticals and eight horizontals”high-speed rail network's Hohhot-Nanning Corridor. On May15, 2024, Bao Gang United Steel successfully delivered andpioneered the laying of 2,430 tons of 60N U71MnH G rail onthe Jining-Datong Section of the entire line. This rail type offerssuperior hardness, wear resistance, and longer service life,ensuring safer, smoother, and more efcient train operations.Wind power steel
Qinghai-Tibet Railway
Chairman Mao Memorial HallOlympic venuesEye In The Sky ProjectNingxia Water EcologyProject
Three Gorges Dam ProjectJiangyin BridgeBeijing-Shanghai express
railway
Ship steelSteel furnace tubeOil casing
1415
Responsibility issue2024 Sustainability Report
In 2024, Bao Gang United Steel had successfully put 23 sets of industrial robots into operation, achieving the goal set bythe Group to replace human labor in 91 “3D” positions within 3 years, gradually realizing unattended production processes,remote centralized control, and one-click production, with a numerical control rate of 83.17%. At present, 196 intelligentequipment projects including industrial robots, online equipment monitoring, and intelligent lubrication have beenimplemented in 89 application scenarios.In 2024, Bao Gang United Steel's Steel Pipe Branch's “Pipe Processing Intelligent Coupling Line Application Project” wasthe only case in Inner Mongolia Autonomous Region selected by the Ministry of Industry and Information Technology as atypical application case of “Advanced Computing Empowering New Quality Productive Forces”, and also one of the fourprojects selected in the steel industry.
Bao Gang United Steel actively introduces digital andintelligent technologies, relying on the intelligent controlplatform to achieve real-time monitoring and precisescheduling of production processes, which optimizesresource allocation, improves production efficiency,and provides valuable experience for the intelligenttransformation of the steel industry.
Bao Gang United Steel has focused on advancing 7smart workshop pilot projects, including the cold zonecentralized control of the rail and beam plant and the one-click steelmaking project in the steelmaking plant, andhas completed the optimization and iterative upgradesof related scenarios. It has cultivated the beam and rail,wide and thick plate production lines and the Barunsmart mining site as digital and intelligent demonstrationproduction lines, accumulating replicable and promotabledigital and intelligent application experiences, promotingmore transparent production processes and more refinedmanagement, providing solid technical support forachieving lean production.
?Building an intelligent factory?Build digital workshops
Empowering intelligence, and activating a newengine for the steel industry
Responsibility issue II
Bao Gang United Steel closely follows the national strategy for industrial Internet development, actively integrates into thegrand blueprint of national manufacturing digital transformation and the “Digital Inner Mongolia” construction. Upholdingthe core concepts of “green, intelligent, innovative, and shared”, driven by intelligent production and smart operation,it fully promotes the grand construction of intelligent manufacturing, striving to create a digital benchmark in the steelindustry.
Bao Gang United Steel is gradually building a full-life-cycle intelligent steel enterprise, from intelligent equipment to digitalworkshops, and then to intelligent factories, realizing the closed-loop of intelligent manufacturing, end-to-end marketing,and supply chain ecosystem, further improving production efciency, greatly enhancing employee satisfaction and quality oflife, demonstrating the Company's profound social responsibility.
Based on the construction of smart factories, Bao Gang United Steel has gradually established an integrated business andfinance platform, strengthened the digitalization of the cost accounting process and the intelligent management of theproduction process, realized the close connection and real-time data transmission and sharing of various management linkssuch as production, sales, procurement, and nance, optimized internal processes, improved the scienticity and accuracy ofdecision-making, and enhanced the operational efciency and management level of the enterprise.
Achieve “one-click” production
Build “smart” operations
?Introduce intelligent equipment
Case: Bao Gang United Steel successfully issued its rst electronic invoice
On March 21, 2024, Bao Gang United Steel successfully issued its firstelectronic invoice through the Inner Mongolia Electronic Taxation Bureauplatform of the State Taxation Administration, marking Bao Gang UnitedSteel's active response to the tax electronic reform and further promotingthe deep digitalization of Bao Gang United Steel's integrated business andnance.
Bao Gang United Steel's First Electronic Invoice
Case: Bao Gang United Steel introduced intelligent coal quality inspection robot system
As a smart “health examiner” for coal samples, the intelligent coal quality inspection robot system can fullyautomatically detect items such as ash, volatile matter, sulfur, hydrogen, and caloric value in coal. In October 2024,after the introduction and use of this system by Bao Gang United Steel's Chemical Inspection Center, it improvedwork efciency, reduced employee labor intensity, and enhanced the accuracy and fairness of inspection data.
Rare Earth Steel Plate Plant’s AI Assistant Empowers “Smart Hot Rolling”
Intelligent Coal Quality Inspection Robot System
1617
Responsibility issue2024 Sustainability Report
In January 2024, the Fluorite Beneficiation Company and Fluorine Chemical Company construction projects achievedbreakthrough progress, faster than the previously disclosed 7-year production and construction period, completingproduction and construction ahead of schedule, promoting the high-efficiency recovery and high-value utilization ofassociated uorite resources in the Bayan Obo Mine, achieving the expected investment return target, and becoming a newprot growth point for Bao Gang United Steel.
Bayan Obo Mine resource reserves:
Cumulative proven iron ore reserves of
Niobium reserves second only to Brazil,
rare earth reserves
associated uorite reserves in China
1.26
billion tons
World's largest
Largestranking second in the world
Case: New minerals shine and strengthen the “security chain” of strategic resources
The Bayan Obo Mine is a vital strategic resource treasure trove for the nation and the primary resource supporting BaoGang United Steel's development. In 2024, the Bayan Obo Mine successively discovered new minerals such as OboNiobium, Zhai Scandium Amphibole, Fluorocarbon Calcium Neodymium, and Fuyuan Niobium, which continuouslyprovides strong support for the security of the national strategic resource industry chain and supply chain.
Rare treasure house, broad prospects fordiversified development
Responsibility issue III
Against the backdrop of increasingly fierce global resource competition and the grand era of promoting sustainabledevelopment domestically, Bao Gang United Steel, centered on the Bayan Obo resources, has built the resource andcomprehensive utilization industry into the third main business and the third pole of development, in line with the nationalstrategic resource development plan and layout. The Company promotes the comprehensive utilization of Bayan Oboresources, builds the largest niobium and fluorite industry in China, fully taps the production capacity, resource-savingcapacity, resource conversion capacity, and green development capacity of self-owned resources, and strives to create ademonstration base for the comprehensive utilization of polymetallic resources.
Bayan Obo has long been known as the “rich divine mountain” and the “world’s hometown of rare earth”, with its abundantmineral resources being one of its advantages. The Bayan Obo Mine is a globally renowned polymetallic co-associateddeposit of iron, rare earths, niobium, scandium, and uorite, divided into the Main Mine, East Mine, and West Mine. TheWest Mine belongs to Bao Gang United Steel, a co-associated deposit of iron and rare earths, with a cumulative proven ironore reserve of 660 million tons and an annual mining capacity of 10 million tons.
In 2015, the Company invested RMB 26.8 billion to acquire the Group's tailings pond resources. The tailings pond resourcesamount to approximately 200 million tons, with rare earth reserves equivalent to 13.82 million tons of oxides, making it theworld's second-largest rare earth mine. In 2018, the Company acquired the assets of China Northern Rare Earth's rare earthconcentrator, increasing the production capacity of rare earth concentrate to 450,000 tons,
To maximize resource value and continuously enhance industrial competitiveness, the company leverages its resourceadvantages, rapidly advances the construction of the hydrogen-based mineral phase transformation project for mediumand low-grade oxidized ores, deepens the utilization of iron ore resources; based on fluorite resources, integrates withBaotou City's uoromaterial industry planning, couples with Bao Gang United Steel and surrounding resources, developshigh-performance uoropolymers, and extends the industry into uorosilicone resins and functional membrane materials;accelerates the technological upgrade of coke by-products and the construction of comprehensive gas utilization projects,extends the benzene hydrogenation and tar deep processing industry chain, conducts technical reserve research, anddevelops more high-value-added products.
Bayan Obo Mine
Tailing pond
Comprehensive resource utilizationBayan Obo Mine
Niobium-Scandium New Minerals Release Conference and Niobium-Scandium Resource Comprehensive Utilization Academic Seminar
2024 Sustainability Report
GovernancePromote stability like a rock
Environment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
ENVIRONMENT
Key performance
The rise of green beauty is timely, and ecological civilization paints a splendid chapter. Guided by theconcept of “a community of shared life between humans and nature”, Bao Gang United Steel deeplypractices the era proposition of “lucid waters and lush mountains are invaluable assets”, and integratesecological civilization construction into the development genes of the enterprise. Based on the national“carbon peaking and carbon neutrality” strategic goal, the Company reconstructs the environmentalgovernance paradigm with systematic thinking, builds an ecological management system covering theentire industry chain, incorporates climate governance into the core strategy, innovates and implementscoordinated actions for energy conservation, carbon reduction, and pollution reduction, promotes thegreen transformation of the entire production process, builds a green urban steel plant, and injects steelpower into the painting of a beautiful China with bluer skies, greener mountains, and clearer waters.
Environment“Steel” flowers bloom with green vitality
The number of environmental pollution incidentsand environmental nes faced within the scalyear are both
Completed self-generated electricity of
6.5
billion kWh,reducing external electricity purchase costsby RMB
million year-on-year
Carbon emission intensity in 2024 decreasedby
1.86%
compared to 2023The greening coverage rate ofthe plant area is
50.1%
performance in heavy pollution weather in InnerMongolia Autonomous Region
The title of
by China Metallurgical NewsThe rst steel enterprisewith A-level“Green DevelopmentBenchmark Enterprise”
1819
2024 Sustainability Report
Governance
Promote stability like a rockEnvironment“Steel” flowers bloom with green vitality
Society
Build dreams and benefit the people
?Environmental emergency mechanismThrough on-site investigations and data collection, Bao Gang United Steel identies environmental risk receptors around theCompany. According to the Risk Classication Method of Enterprise Environmental Emergencies, it accurately assesses theenvironmental risk level and formulates practical emergency plans for environmental emergencies. After the occurrence of
RisksMeasures
The quality of personnel is uneven,environmental awareness is weak,and there is insufcient identicationof environmental factors in positions.
The Company organizes employees to participate in the identication of jobenvironmental factors, strengthens the professional knowledge and abilitytraining of environmental protection management personnel, and improves itsoverall environmental protection management level.
?Creation of an environmental protectionatmosphereDuring “World Environment Day”, “National Low-CarbonDay”, and “Energy Conservation Publicity Week”, Bao GangUnited Steel carries out a series of promotional activities.Through morning meetings, “three meetings and onelesson”, and other forms, it organizes employees to deeplystudy laws, regulations, and policy documents relatedto energy conservation and carbon reduction. Bannersare hung and slogans are posted in office buildings andworkshops. Public accounts are used to organize the studyof regulations and policies and to watch promotional videos,effectively linking online and ofine efforts to advocate forlow-carbon living concepts and enhance the environmentalprotection awareness of all employees.
IndicatorUnit2024Environmental investmentRMB 100 million37.71Number of environmental pollution incidentsItem0Environmental nes faced during the scal yearRMB ten thousand0Proportion of sites with environmental risk assessments%100Proportion of sites certied with ISO14001 environmental
management system
%100Employee training coverage rate on environmental
protection
%100
Strengthen environmentalmanagementBao Gang United Steel deeply cultivates the foundation of green development, adheres to the concepts of green, circular,and low-carbon development, improves the environmental management system, enhances environmental risk preventionawareness, solidifies environmental responsibilities, establishes environmental emergency mechanisms, and promotesstandardized, normalized, and long-term environmental management. In 2024, Bao Gang United Steel was awarded the titleof “Green Development Benchmark Enterprise”. and “Clean Production and Environment Friendly Enterprise in Iron andSteel Industry in China”Governance
Bao Gang United Steel resolutely implements the environmental responsibility requirements of “joint responsibility ofthe party and government, dual responsibilities for one position, and accountability for dereliction of duty”, appoints oneassistant general manager in charge of environmental protection, and manages environmental protection work professionallythrough the Manufacture Department. The Manufacture Department has 1 environmental protection director, 1 directorof the environmental protection management office, and 3 professional management groups, including 15 professionaltechnicians. There are a total of 47 environmental protection managers and specialists in secondary organizations.StrategiesBao Gang United Steel identifies its own environmental risk sources, formulates environmental risk prevention andemergency measures systems, designates key positions or responsible agencies for environmental risk prevention, andestablishes regular inspection and maintenance responsibility systems.
Impact, risk, and opportunity managementBao Gang United Steel strictly complies with the relevant requirements of the Environmental Protection Law of thePeople’s Republic of China and the Environmental Protection Tax Law of the People’s Republic of China and other laws andregulations, formulates environmental management manuals, procedural documents, and management systems, further improvesthe environmental management system and institutions, enhances the environmental protection emergency mechanism, andfosters an environmental protection atmosphere. The Company has passed the environmental management system certicationand regularly conducts reviews to ensure the scientic and effective management of environmental compliance.
an environmental emergency, each secondary organization of Bao Gang United Steel establishes an emergency commandorganization based on the emergency plan for environmental emergencies, fullls the initial disposal responsibilities, and isresponsible for the initial organization and command of environmental emergencies. When a company-level environmentalemergency occurs, Bao Gang United Steel and its secondary organizations conduct emergency linkage. Bao Gang UnitedSteel establishes an emergency command headquarters responsible for issuing command orders, personnel, and materialallocation. The secondary organization’s emergency command headquarters provides real-time feedback and conductsemergency rescue as required, forming a more powerful emergency response synergy.
Indicators and goals
The Power Supply Plant Conducted Low-Carbon Promotion Activities on“World Environment Day”
In 2025,Bao Gang United Steel will promote the coordinated development of green manufacturing and green industries,achieve ultra-low emission transformation and long-term maintenance of A-level enterprise performance in heavy pollutionweather; ensure no major or above sudden environmental incidents occur throughout the year.
2024 Sustainability Report
GovernancePromote stability like a rockEnvironment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Bao Gang United Steel deeply recognizes the urgency and importance of addressing climate change. In accordance withthe Management Measures for Carbon Emission Trading (Trial), Management Measures for Carbon of Baogang Group,and Management Measures for Carbon of Bao Gang United Steel, the Company ensures that every decision and actionmeets the requirements of sustainable development, achieving harmonious coexistence between the enterprise and theenvironment.
TypeReporting periodMeasures
Shortterm
1-2 years
?Responses are made by formulating annual work plans, monthly summary andscheduling of work progress, and formulating emergency plans for sudden situations.
?The relevant energy-saving and carbon reduction projects planned for the year havebeen included in the Company's annual infrastructure and technical transformationinvestment plan, with continuous project demonstration throughout the year, andinvestment decisions are made in accordance with regulations.
Mediumterm
5 years
?The formulation of the “14th Five-Year Plan” energy conservation special plan, as amid-term industrial development response to climate change, provides an overallplan for the Company's current situation analysis, risk and opportunity identication,planning ideas, and goals in low-carbon and energy aspects.
Longterm
5 to 10 yearsand above
?Responding to the group-level carbon peaking and carbon neutrality work plan,clarifying the Company's “dual carbon” strategic direction, carbon peaking time, andcarbon neutrality path.
Risk typeRisk parameterPotential impactMeasures
Physical risksAcute risks
Increasedseverity andfrequency ofextreme weatherevents (suchas heavy rain,snowstorms, etc.)
In recent years, the frequent occurrenceof global extreme weather events maycause periodic interruptions in theCompany’s raw material and fuel supply,water resource supply, etc., therebyaffecting production.
?Hold annual meetingsfor ood preventionand ice prevention,and winter heating,establish workinggroups, and issueemergency plans.
Transformation
risk
Policies andlaws andregulations
Expansion of thecarbon market,carbon pricingmechanism, andincreased costs
The constraints of industry energyconservation, emission reduction, andenvironmental protection policiesare increasingly strengthened. Theimplementation of the ManagementMeasures for Carbon Emission Trading(Trial) increases the penalty risks forenterprises participating in carbontrading. The expansion plan of thenational carbon market is released,specifying that 2024 will be the rstcontrol year. The Company will participatein the national carbon market compliancetrading carbon price, facing increasedcompliance costs and carbon pricerisks, thereby increasing production andoperation costs and constraining theCompany's strategic development.
?Establish a low-carbonenergy center, set upprofessional techniciansto study policies,actively participatein industry andregulatory authorityexchange training,timely interpret policydocuments, learncarbon market andCBAM rules, andconduct company-levelpolicy and regulationpromotion training.
?Strengthen carbonemission statisticalaccounting to ensuredata accuracy andreliability.
?Develop a carbonpeaking and carbonneutrality action plan,clarifying specic goalsand key tasks for eachstage.
Carbon tariff
The EU National Committee announcedthe launch of the world's rst “carbonborder tax” plan, imposing tariffs onimported carbon goods including steel,cement, etc., which will inhibit the exportof some of the Company's products,increase export costs, and affect revenue.
Transformationof the “dualcontrol” policy,enhanced carbonconstraints
The shift from dual control of energyconsumption to dual control of carbonemissions is an important measure forChina to address global climate changeand promote the comprehensive greentransformation of economic and socialdevelopment. Under this policy guidance,primary energy consumption will befurther restricted, driving enterprises totransition towards renewable energy, newenergy, and low-carbon development. TheCompany needs to invest in technologyresearch and development, technologyintroduction, and facility upgrades duringthe transformation process, leading toincreased investment and operationalcosts, which may impact revenue.
Combat with climate change
GovernanceThe Company mainly obtains climate-related risks and opportunities through its Party Committee and the general manager’sofce meeting reviewing the Bao Gang United Steel Annual Energy Saving and Carbon Reduction Work Plan, and managesrisks and opportunities through low-carbon energy work meetings, reporting on energy and low-carbon work, and irregularlylistening to related thematic reports and professional training; the Low-Carbon Energy Management Center fully undertakesall low-carbon energy management functions of the Bao Gang United Steel sector (including agencies). By the end of 2024,the Low-Carbon Energy Management Center had a total of 15 management and technical personnel.
StrategiesBao Gang United Steel comprehensively considers climate-related risks and opportunities from different dimensions suchas time, space, and type, identies and sorts out climate-related risks and opportunities from the two categories of physicalrisks and transition risks, and proposes a series of targeted response measures, effectively deploying climate risk responseplans and seizing business opportunities.
2024 Sustainability Report
GovernancePromote stability like a rock
Environment“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Technology
and cost
Low-carbontechnologytransformation
In response to the national “dual carbon”goals and to achieve the Company's “dualcarbon” goals, signicant investmentwill be required in the future for theresearch and application of low-carbonmetallurgical technologies. However,these technologies are still immature andcarry considerable uncertainty.
?Conduct low-carbonmetallurgy researchbased on the T80list, and promotethe application oftechnologies such aswaste heat and energyrecovery, elimination ofhigh-energy-consumingequipment and processupgrades, intelligentscheduling, andcomprehensive water-saving management.
Transformationcost
During the low-carbon transformationprocess, the Company will increase theresearch and application of energy-saving, environmental protection, andlow-carbon smelting technologies, whichwill lead to increased costs and the risk ofvalue loss in existing xed assets.
?Optimize resourceallocation to reducelong-term operationalcosts; seek policysupport; promotetechnology innovationto lower the cost of low-carbon technologies.
Market
Increaseddemand forgreen and low-carbon products
Driven by the trend towards green andlow-carbon development, market demandfor green and low-carbon steel productswill continue to rise, intensifying industrycompetition. If the green transformationis slow, it may lead to a reduction in theCompany's market share.
?Actively conductresearch on low-carbon emissionsteel and organizeEPD certicationwork, aiming tocomplete 3 EPD reportcertications by 2024.
Rising rawmaterial and fuelcosts
Energy and resource prices are highlylikely to rise due to the impact ofclimate change, thereby affecting theprocurement costs of raw materials andfuels, leading to increased costs andother risks.
?Optimize procurementstrategies to reducereliance on singlesources; invest intechnology researchand development toimprove processes andenhance the utilizationrate of raw materialsand fuels.
Reputation
Stakeholderconcerns aboutclimate changeresponsemeasures
Investors and other stakeholders, aswell as the general public, will pay moreattention to the Company's climatechange response measures and actions,even considering them as key indicatorsof the Company’s performance. This maybring reputational risks to the Company'soperations, requiring investmentin resources to strengthen carbonmanagement to meet their expectations.
?Actively respond toconcerns, increasetransparency;participate in publicwelfare campaigns, winrecognition from allparties.
2024, continued to promoteenergy-saving and carbonreduction projects
Preparegreenhouse gasemission reports
Completed the preparation of the 2023 greenhouse gas emission reports for the steel sector andtwo managed power plants, and successfully passed the verication by a third-party vericationagency commissioned by the Department of Ecology and Environment of Inner MongoliaAutonomous Region.Conduct carboninventory for thesteel sector
Investigated and sorted out the sources of carbon data parameters and statistical methods involvedin the legal boundaries of steel production and the ten major processes, further clarifying the carbondata and management processes at each stage.Build a digital
carbonmanagement
platform
The platform can achieve online reporting of the Company's carbon emission data parameters,electronic storage of supporting materials, and other functions, meeting the national monthly datareporting requirements while signicantly improving the quality of the Company's carbon emissiondata and the efciency of accounting and analysis.Participate incarbon emission
trading
By completing the transformation of the thermal power plant's main pipe system to enhance heatingcapacity and other measures, the quota gap for Bayan Beneciation Branch and Baogang ThermalPower Plant in this compliance period was reduced by 41,000 tons year-on-year, saving over RMB 4million in compliance costs.Participate invarious emission
reductionmechanisms
Actively utilized carbon market policies and carbon price rules, timely tracked the price trends ofCEA and CCER, and through subscription and price locking, Bayan Beneciation Branch and themanaged Baogang Thermal Power Plant purchased a total of 70,000 tons of CCER at a price lowerthan CEA during the 2023 national carbon market compliance period, reducing compliance costswith a combination of CEA and CCER.Low-carbontechnologyresearch anddevelopment
Adopted the GreenOre CleanTech’s carbonization chemical process to produce high-purity calciummagnesium carbonate, iron-containing materials, green negative carbon micro-powder, and otherproducts, truly achieving the resource utilization of solid waste and permanent reduction andsequestration of CO2; built a CCUS full industrial chain demonstration project, contributing toenergy conservation, emission reduction, and low-carbon economic development in China's steelindustry; through four rounds of industrial tests on high scrap ratio in converters, continuouslyoptimized and adjusted production processes, determined the carbon reduction process path of“increasing converter scrap ratio + optimizing raw material structure + increasing green power ratio+ extreme energy efciency improvement”, achieving a 40% reduction in carbon emissions.Conduct EPDcertication forsteel products
Release EPD reports for cold-rolled steel strip, rail, and hot-rolled steel plate and strip on the CISAEPD platform, providing downstream users with transparent and comparable environmental productdeclaration information throughout the product lifecycle.
Green product
design
Own two green trademarks, “BGreeREX” and “BGreeEX”, divided into two series: “Low CarbonEmission Rare Earth Steel” and “Low Carbon Emission Steel”.
Impact, risk, and opportunity managementBao Gang United Steel actively engages in carbon asset management and energy-saving and carbon reduction actions, continuously promotes carbon asset management,strengthens carbon emission control, and achieves efficient coordination and rationalallocation. In 2024, Bao Gang United Steel completed the carbon footprint calculationfor all steel products, continued to promote 18 energy-saving and carbon reductionprojects, among which the distributed PV power generation project (Phase II) on thefactory roof was connected to the grid, with an annual power generation of 20 millionkWh, continuously improving the Company's energy conversion efciency.
2024 Sustainability Report
Governance
Promote stability like a rockEnvironment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Product EPD Report
Low Carbon Emission Rare Earth Steel
Low Carbon Emission Steel
Case: Bao Gang United Steel's pipeline tubes supported CCUS project construction
CCUS Full-Industry-Chain Demonstration Project
In December 2024, Bao Gang United Steel’s Steel Pipe Branch developed and produced pipeline tubes for the rsttime, providing material support for Baogang Group's 2 million tons (Phase I: 500,000 tons) CCUS full-industry-chaindemonstration project, while also accumulating product and technical reserves for Bao Gang United Steel to achieveits “dual carbon” goals.
Indicators and goals
Bao Gang United Steel's “Dual Carbon” Technology Roadmap2020
0%
70%
100%
CO
20352060
Extreme energy
efciencyCarbon reduction3-5%
Metallurgical resource
recycling
Carbon reduction
10-20%
Near-net shapemanufacturing
Carbon reduction
5-10%
Hydrogen-rich carbon
cycle blast furnace
Carbon reduction30-50%
Hydrogen-based
shaft furnace
Carbon reduction
50-90%
Extreme energy
efciency
Carbon reduction
30-50%
2024 Sustainability Report
Governance
Promote stability like a rockEnvironment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Bao Gang United Steel comprehensively implements the green development concept, adhering to the coordinatedadvancement of carbon reduction, pollution reduction, green expansion, and growth, actively optimizing the energystructure, improving water resource efficiency, strictly controlling pollutant emissions, and promoting the reduction,recycling, and harmless treatment of solid waste. In 2024, Bao Gang United Steel was recommended as the 2024 China SteelIndustry Clean Production Environment-Friendly Award-Winning Enterprise.
Promotion of green production
Energy utilization
Bao Gang United Steel strictly follows the requirements of the Energy Law of the People's Republic of China and the 2024-2025 Energy Conservation and Carbon Reduction Action Plan, formulating and issuing energy management manuals,procedural documents, energy-related management systems, and daily assessments, continuously improving the energymanagement system. As of 2024, Bao Gang United Steel and all its subsidiaries have established an energy managementsystem that complies with national standards (GB/T23331) and has passed third-party certification for the energymanagement system.
?GovernanceBao Gang United Steel has established a 5-layer vertical management hierarchy consisting of teams, sections, workshops(operation departments), plants, and Bao Gang United Steel itself, following the principle of “responsibility to individuals,horizontal coverage, vertical depth, and systematic control”. It forms an “five vertical and eight horizontal” energymanagement network with 8 processes: mining, beneficiation, coking, sintering (pelletizing), blast furnace, steelmaking,rolling, and power auxiliary.
“Five Vertical and Eight Horizontal”
Management Network
Responsibility to Individuals, Horizontal Coverage,Vertical Depth, Systematic Control
Team
Section
Plant
Bao GangUnited SteelWorkshop(OperationDepartment)- Mining - beneciation - coking - sintering (pelletizing) - blast furnace - steelmaking -
rolling - power auxiliary
?Strategies
RisksMeasuresUnauthorized use of energy withoutapproval, or use not in accordance
with approved conditions
?New, modied, or expanded projects must complete relevant procedures asrequired and cannot be altered arbitrarily after approval.
Low energy utilization
?Promote energy-saving technologies and equipment to reduce energyconsumption;
?Establish and improve energy emergency mechanisms to respond toemergencies;
?Enhance energy-saving awareness and reduce energy waste.Transformation cost increase
?Optimize resource allocation to reduce long-term operating costs;
?Seek policy support to obtain government subsidies;
?Promote technology innovation to reduce low-carbon technology costs.
?Impact, risk, and opportunity management
Improve utilization efciency
Bao Gang United Steel is committed to balancing business development with energy conservation and emission reduction.By implementing various energy-saving measures, it effectively improves resource utilization efficiency, accelerates theformation of a resource-saving and environmentally friendly industrial structure, and supports the Company's carbonpeaking and carbon neutrality goals.
Bao Gang United Steel has achieved significant improvements in theenergy efficiency levels of major processes through measures such asenergy structure adjustment, accelerated energy-saving technologicaltransformation, and equipment efficiency enhancement. In 2024, BaoGang United Steel was honored with the titles of “Dual Carbon BestPractice Energy Efficiency Benchmark Demonstration Plant” for the2023 Steel Projects with Extreme Energy Efficiency and outstandingprogress enterprise in the “Three-Year Action Plan for Energy EfficiencyBenchmarking” for the 2024 Steel Projects with Extreme Energy Efciency.
Bao Gang United Steel emphasizes strengthening the linkage and coordination between energy and production, focusingon improving the efficiency of energy production, conversion, and utilization, enhancing sintering and blast furnaceutilization coefcients, optimizing raw material structures, and reducing fuel consumption per unit. It systematically balancesgas resources, conducts electricity-saving initiatives, increases power generation while reducing external purchases, andpersists in the “light off” campaign, planning projects to reduce emissions. In 2024, the Company’s comprehensive energyconsumption per ton of steel was 629.11 tons of standard coal per ton of crude steel, a year-on-year decrease of 2.8%.
Case: Bao Gang United Steel was awarded the honorary title of “Dual Carbon Best Practice Energy EfciencyBenchmark Demonstration Plant” for the Steel Projects with Extreme Energy Efciency.
2024 Sustainability Report
Governance
Promote stability like a rock
Environment“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Use clean energyIn terms of green electricity trading, Bao Gang United Steel actively participates in the market, continuously increasing theproportion of externally purchased green electricity, effectively reducing the Company’s total carbon emissions; activelydeploys clean energy, promoting the optimization of energy mix. By 2024, Bao Gang United Steel completed 6.5 billionkWh of self-generated electricity, reducing external electricity purchase costs by RMB 575 million year-on-year; a 41.44 MWrooftop PV power generation project has been completed, with the green electricity trading ratio reaching 50%.
Main Construction of the Wind Farm for the Bayan Obo Mine District Green ElectricityDirect Supply Project
Bayan Obo Iron Mine Welcomes Its First Hybrid ElectricMining Truck
?Indicators and goals
Indicator
IndicatorUnit2024Total energy consumptionTce coal9,431,287Total energy consumption per million revenueTce coal138.51Comprehensive energy consumption per ton of steels
Ton of standard coal / ton of
crude steel
629.11
Steam consumptionTce coal867,641.35Total fuel oil consumptionTon38,225.08
Coal consumptionTon9,782,357.68Diesel oil consumptionTon38,156.71Gasoline consumptionTon68.37Waste heat energy consumptionTce coal867,641.35Waste heat and energy recovery utilization rate%85.15Renewable energy consumption (PV)kWh117,680
Goal
?According to the target requirements of Baogang Group's “14th Five-Year Energy Saving Plan”, thecomprehensive energy consumption per ton of steel will decrease by 5% by 2025.
?According to the Steel Industry Energy Saving and Carbon Reduction Special Action Plan, by the endof 2025, the proportion of production capacity above the energy efficiency benchmark level in thesteel industry will reach 30%, and production capacity below the energy efciency baseline level willcomplete technological transformation or be phased out.
Utilization of water resources
Bao Gang United Steel integrates the concept of water conservation throughout the entire production and operationprocess, strengthens the construction of water resource management systems, achieves rened control of water resources,and sets a benchmark for water conservation in the steel industry.
?Strategies
RisksMeasuresUnauthorized water extraction or waterextraction not in accordance with theapproved water extraction permitconditions
New, modied, and expanded projects must apply for water extraction permitsas required, and the approved water sources and purposes must not bearbitrarily changed.Organizations with water intakeexceeding the specied scale havenot installed online metering facilities,or the online metering facilities areunqualied or not operating normally.
Conduct instrument inspections for existing and new/renovated/expandedprojects to meet the requirements of GB/T 24789-2022 General Rules forEquipping and Managing of the Water Measuring Instrument in Water-UseOrganization.Water-use organizations exceedingmandatory water quotas havenot implemented water-savingtechnological transformations withinthe specied period.
Prioritize the use of unconventional water and cascade water use, strengthenmonitoring of water quantity and quality at each usage stage, enhance cascadeand recycled water use, and carry out water-saving renovations for waterfacilities.
?GovernanceBao Gang United Steel established a Water Resource Management Committee, with the Party Secretary and Chairmanserving as directors, Bao Gang United Steel leaders serving as deputy directors, and relevant functional departments andorganization leaders, including the Executive Deputy Director of the Low-Carbon Energy Center, serving as members; theofce is located in the Low-Carbon Energy Center, with the Executive Deputy Director serving as the ofce director and theHead of Power Operation Management Department serving as the deputy ofce director.
2024 Sustainability Report
GovernancePromote stability like a rockEnvironment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
?Impact, risk, and opportunity management
Bao Gang United Steel usedapproximatelytotal external drainage ofof surface waterof groundwater
In 2024
57.9467
million m
70,500
m
3.147
million
m
Bao Gang United Steel strictly adheres to the Yellow River Protection Law of the People's Republic of China, Regulationson Water Conservation, and Management Measures for Water Resource of Baogang Group, and issued the Notice on theEstablishment of the Water Resource Management Committee of Inner Mongolia Bao Gang United Steel Co., Ltd.; enhancewater-saving awareness, conduct technological transformations, and comprehensively improve the level of intensiveand efficient water resource utilization. In 2024, Bao Gang United Steel used 57.9467 million m
of surface water andapproximately 70,500 m
of groundwater, with total external drainage of 3.147 million m
, achieving the best historical levelof new water consumption per ton of steel.
On March 26, 2024, the rst comprehensive treatment equipmentfor circulating cooling water in the national steel industry began trialoperation at Bao Gang United Steel, expected to achieve “near-zero emission”, reducing external drainage by 100 m3 per hour andsaving 760,000 m3 of new water annually.
Case: The rst comprehensive treatment equipment for circulating cooling water in the national steel industrywas put into use at Bao Gang United Steel
Comprehensive Treatment Equipment for CirculatingCooling Water
“Triple-effect Evaporation” Equipment for Sintering Desulfurization Wastewater at Rare Earth Steel Ironmaking Plant
?Indicators and goals
IndicatorUnit2024Total water consumptionTen thousand m
285,034.53Total water consumption per million revenueTen thousand m
4.1862
Fresh water consumptionTen thousand m
5,801.73Fresh water consumption per ton of steelTen thousand m
3.87
Recycled water consumptionTen thousand t279,232.80Water resource reuse rate%97.96Waste water emissionTen thousand t314.72
?Governance and strategy
Pollutant emission managementIn accordance with the Emission Standard of Air Pollutants for Steel Smelt Industry and Emission Standard of Air Pollutantsfor Steel Rolling Industry, Bao Gang United Steel releases the Regulations on the Administration of Pollutant DischargePermits for “one-permit” management of pollutant discharge permits and strict control of pollutant emissions. It strengthensthe construction of automatic monitoring facilities for pollutant emissions, networks with ecological environment andrelevant departments, and formulates self-monitoring plans, to reduce the impact of pollutant emissions on surroundingcommunities. In 2024, emissions of sulfur dioxide, nitrogen oxides, and particulate matter decreased by 33%, 22%, and27% respectively compared to 2023, setting a new historical low for major air pollutant emissions. This makes the Companybecome the rst steel enterprise in Inner Mongolia Autonomous Region to complete the publicity of ultra-low emissions forall processes and the rst steel enterprise with A-level performance in heavy pollution weather.
Waste disposalBao Gang United Steel attaches great importance to waste management, strengthens waste classication and recycling, andpromotes harmless waste treatment, to reduce resource waste and minimize adverse environmental impacts.
Bao Gang United Steel establishes an Environmental Protection Committee to manage waste-related treatment work.The Environmental Protection Committee of each organization is responsible for identifying and evaluating risks andopportunities of the organization every six months; the Company's environmental risk and opportunity identication andevaluation team is responsible for analyzing, reviewing, and determining the company-level risk and opportunity control list,and formulating response measures for the risk events included in the risk and opportunity control list based on the actualsituation.
2024 Sustainability Report
GovernancePromote stability like a rock
Environment“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
RisksMeasuresUnclear and unreasonable waste
control methods
?Implement clean production audits for emission reduction from the source;
?Strictly select pollution control technologies;
?Establish registers to track waste cycles;
?Strengthen related party management and standardize third-party disposal.
Waste out of control
?Develop waste management procedure documents;
?Clarify processes and responsibilities;
?Set up temporary storage areas and manage them compliantly;
?Establish monitoring and inspection systems;
?Formulate emergency plan and organize drill.
?Impact, risk, and opportunity management
?Establish a direct sales system for water granulated slag with surrounding cement plants to expandexternal sales channels for solid waste products
?Optimize solid waste processing methods to make solid waste products more marketable and of higheradded value
?Explore new ways of solid waste utilization, investigate deep utilization projects for desulfurizationgypsum, and reduce solid waste disposal costs
Waste disposal measures
?Indicators and goals
Waste emission indicators
IndicatorUnit2024
Total waste generationTen thousand t1,323.69General waste generationTen thousand t1,300.90Total non-harmful waste generated per million
revenue
t191.06
Total hazardous wastesTen thousand t22.79Total harmful waste generated per million revenuet3.347
General waste recycling volumeTen thousand t959.13Total waste recycled per million revenuet140.86
Proportion of recycled waste%72.4Waste emission goalsBy 2025, the Company's comprehensive utilization rate of bulk solid waste will reach 97% (excluding tailings), with 100%compliant disposal and storage of desulfurization gypsum, y ash, and tailings, and a 100% safe disposal rate for hazardouswaste.By 2024
In strict accordance with the requirements of the Law of the People's Republic of China on the Prevention and Control ofEnvironmental Pollution by Solid Waste, Management Measures for Hazardous Articles of Baogang Group, ManagementMeasures for Solid Waste Pollution Prevention and Control of Baogang Group, and other documents, Bao Gang UnitedSteel continuously optimizes solid waste disposal processes to strive to achieve a win-win situation for economic andecological benets.
Disposal and Transportation of Waste Oil Drums at Ironmaking Plant
the Company's comprehensive utilizationrate of bulk solid waste will reach
compliant disposal and storage ofdesulfurization gypsum, y ash, and tailings
safe disposal rate forhazardous waste97%
(excluding tailings)
with100%
a100%
2024 Sustainability Report
GovernancePromote stability like a rock
Environment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Bao Gang United Steel insists on taking a new path of high-quality development guided by ecological priority and greendevelopment to integrate green concept into every detail of daily work, and is committed to building a modern steelproduction base that is green, efcient, and sustainable.
Case: Barun Mining Branch promotes green mine constructionBased on the actual ecological environment of the mine, Barun Mining Branch sets clear green ecological restorationgoals. A mixture of various shrubs and grasses such as caragana, amorpha and alfalfa were planted to explore a newmodel suitable for vegetation restoration in cold and arid regions. The No. II-2 dolomite dump, No. III-1 rare earthdump, No. III-2 dolomite dump, No. III-3 waste rock dump and the southwest dump were treated through slopecutting and shaping, vegetation restoration, and pavement and sprinkling, which presented a new scene with greenmountains, birds' twitter and fragrance of owers.
Protect ecological balance
Practice of green business conceptBy integrating green concept into office processes, Bao Gang United Steel guides employees to practice savings andgreen ofce to maximize resource savings, reduce energy consumption, decrease waste emissions, build a “conservation,efciency, environmental protection, hygiene, and health” ofce environment, and unit all employees in the consensus ofgreen development.Focus on biodiversity
Bao Gang United Steel regards the construction of green mines as an important measure to promote high-qualitydevelopment and ecological civilization in mines and ensure that ecological environment management in mines isimplemented effectively. By strictly upholding the bottom line for ecological protection, it is committed to ecologicalrestoration and governance to protect biodiversity. Currently, the regional ecological environment has signicantly improved,with various animals such as white cranes, wild ducks, sh, and hares inhabiting and thriving in the alluvial beaches andwetlands of the tailings pond area, which greatly enriches biodiversity and promotes the formation of a virtuous cycleecological chain.
Build a green factoryBao Gang United Steel insists on building green ecological steel plants, vigorously promotes the coordinated preventionand control of air, water, and soil, actively advances greening and beautication of the plant area, and gradually becomesa new green factory with woods, scenery, and greenery within the plant. In 2024, Bao Gang United Steel achieved a 50.1%green coverage rate in plant area was, and was awarded the title of an autonomous-region-level green factory.
Sign for Turning Off Lights When Leaving at Rare Earth Steel Ironmaking Plant
Chimney Lighting Conducted by Special Steel Branch
Scenery of Mine after Treatment
Greening Project of Roads in the Renovated Steelmaking Plant
Bao Gang United Steel achieved a was awarded the title ofgreen coverage rate in plant area was
In 2024
50.1%
an autonomous-region-levelgreen factory
3839
2024 Sustainability Report
Governance
Promote stability like a rock
Environment“Steel” flowers bloom with green vitality
Society
Build dreams and benefit the people
SOCIETY
Building the foundation of symbiosis with a human centered approach. Bao Gang United Steel deeplycultivates the concept of “symbiosis and mutual benefit”, integrates humanistic care into the core ofcorporate governance, and builds an ecological network of collaborative development among multiplestakeholders. In the dimension of value co-creation, the Company drives product and service upgradesthrough digital transformation, and provides customers with excellent quality. At the level of employeedevelopment, the Company adheres to the principles of “equality, diversity, and inclusiveness”, improvesthe mechanism for safeguarding rights and interests, builds a platform for career growth, and activatesthe innovative potential of human capital. In the eld of partner collaboration, the Company adheres tothe principle of integrity management, builds the foundation for sustainable development of the industrytogether with partners, deeply integrates itself into the construction of social livelihood, continuouslyreleases the efciency of industry's feedback to society, and paints a picture of common prosperity withresponsibility.
SocietyBuild dreams and benefit the people
Key performance
The Company investedRMB
million in employeetraining throughout the year
completed
2,203
training projects
A total of
volunteer serviceswere carried outthroughout the year
with a total of13,780
participants
1,632
100%
achieved
100%employee training coverage
work safety accidents occurred throughout the year
The number of suppliersfor the whole year was
the purchase orders on thebidding and procurementplatform accounted for
No major
3839
4041
2024 Sustainability Report
Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
RisksMeasuresPromotion of cold-rolledautomobile steel faces challenges
Efforts are made in customer service, product development, and process stabilityto improve the quality stability of automobile shell plates.OpportunitiesRisks
“Belt and Road” policy
As a strategic product of the Company, the Company accelerates overseasproduct certication for heavy rail steel and expands its usage in high-speed railprojects in countries such as Russia, India, and Latin America.“Carbon peaking and carbon
neutrality” Initiative
As a branded product of the Company, the Company leverages resourceadvantages, regional advantages, and quality advantages to expand its marketshare in wind power steel.Development of gas pipeline
industry
Increase the sales of high-grade, high-value-added pipeline pipes and pipelinesteel products, and enhance the product structure level.Development of western PVindustry and new energy industry
Further expand the production capacity of zinc-aluminum-magnesium products,vigorously promote the development of medium- and high-grade non-orientedsilicon steel, and improve product market share and competitiveness.
?Impact, risk, and opportunity managementQuality management
Quality culture
The Company revises and formulates 15 quality management systems, including the Management Measures for Quality Accidentsof Bao Gang United Steel and Catalog of Conventional Steel Products of Bao Gang United Steel in 2024, to further improve thefull-process quality management of the steel rolling system. It regularly carries out special inspections of “dedicated personnel forspecic tasks at xed cycles and hot spots” and “process quality and quality objection rectication” to promote the recticationof issues from four dimensions of “immediate action and rectication, drawing inferences about other cases from one instance,establishing rules and regulations, and closed-loop management” and enhance process quality control capabilities. It strictlyimplement the control standards for harmful substances, optimize the management process and evaluation details of qualitytraceability, strictly control the management of harmful elements in self-produced iron concentrate, and further improve productsafety and quality. It benchmarks against industry leaders, establishes benchmarking improvement indicators, and promotes the“dual improvement” of product quality and operational efciency.By the end of 2024, Bao Gang United Steel has passed the ISO 9001 Quality Management System and IATF 16949Automotive Quality Management System certications; obtained the extended production license for deformed steel barproducts, CRCC extended certicate for rail products, EU TSI renewal certicate for rail products, GOST renewal certicatesfor H-shaped steel and seamless pipe products in Russia and Kazakhstan, renewal certicates for shipbuilding steel pipes,plates, coils, and H-shaped steel from the China Classication Society, renewal certicate for shipbuilding steel plates fromthe American Bureau of Shipping, and annual supervision certicate for weathering resistant structural steel from the ChinaClassication Society; completed the KRRI product type certication and system on-site audit for rails by the Korean Ministryof Transport and CRCC annual supervision audit for rails.
The Company continues to implement the“Quality Month” activities and conductssystematic quality management knowledgetraining to improve the participation of allemployees in quality management. In 2024,the Company organized and carried out theannual “quality first” special quality training,QC team activities, and Six Sigma projecttraining, and participated in the 2024 QC TeamAcademic Exchange Meeting of the InnerMongolia Autonomous Region to strengthenthe quality management level of employees.
?3 achievements were selected as excellent cases of increasing variety, improving quality and creating
brands by the China Iron and Steel Association;
?The Company's 11 products, including hot-rolled low-alloy structural steel strips, hot-rolled low-alloystructural steel plates, and seamless steel pipes for low- and medium-pressure boilers, were rated as“Golden Cup Quality Products” by the China Iron and Steel Association. Among them, one rail steelproduct for railway applications was rated as “Golden Cup Special Quality Product”;
?The Company was selected as “2024 China Excellent Steel Enterprise Brand” and rated as abenchmarking enterprise for brand building in Inner Mongolia.
Quality management achievements of Bao Gang United Steel in 2024
“Quality Month" activity
Customer orientation, quality first
Bao Gang United Steel always puts customers first. It builds a strict quality control system for strict quality control, andensures product quality with high standards; continuously optimizes service processes for efcient and considerate services,and promptly collects and processes customer opinions and suggestions for effective improvement of customer satisfaction.Product quality assurance
Adhering to the quality management policy of “strengthening risk awareness, stabilizing production process, intensifyingquality management, implementing brand building, and continuously improving customer satisfaction and loyalty with BaoGang United Steel's high-quality development strategy as guide and customer needs as driving force”, Bao Gang United Steelensures that its product quality meets or exceeds industry standards and meets the diverse needs of customers.
?Governance
?Strategies
The Company's quality management system organization is mainly composed of management, functional managementdepartments (mainly including manufacturing and quality, equipment, human resources, nance, etc.), product productiondepartments, support departments (marketing, R&D, chemical testing, measurement, warehousing, etc.), with relevantresponsibilities and authorities clearly dened.
The Company formulates the management document Control Procedure for Risk and Opportunity Management andPreventive Measures to manage product quality risks through processes such as product quality risk identication, productquality risk assessment, and risk prioritization.
Strip Plant is Carrying out Filter Cleaning,Repair and Replacement Work
Steelmaking Plant is Conducting “QualityMonth” Special Training
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Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
?Indicators and goals
Customers raiseproduct qualityobjection handlingrequirements
Handle according to theprescribed procedures,and submit the handlingresults to the user forconrmationUnderstand andanalyze the objectionson site and determinethe solution
Sales company(marketingdepartment) acceptscustomer objections
Quality objectionhandling
Handling results(End)
?Governance
?Strategies
?Impact, risk, and opportunity managementAdhering to equal employment
Improvement of remuneration and welfare
With the protection of employees' rights and interests as the cornerstone,, Bao Gang United Steel carefully balancesemployees' work and life, continuously improves the talent cultivation and promotion system, fully focuses on employees'occupational health and safety, and provides solid growth guarantees and abundant development opportunities foremployees.
Risk pointsRisk level (ABC)Prevention and control measures
Irregular handling of personnel
transfer
Level B
Approve employee transfers in strict accordance withthe transfer principles and human resource efciencyimprovement indicators.Irregular handling of labor contractsigning and termination procedures
Level B
Handle in strict accordance with regulations andapproval procedures.
In 2024, the actual qualication rate of the Company's key products reached 99.06%. The Company's waste and ungradedproduct reduction rate was 1.17%, a decrease of 0.43 percentage points year-on-year, achieving the set goal.By 2025, the Company's waste and ungraded product reduction rate will be 1.12%. To ensure that this goal is achieved,the Company has taken measures such as rening quality defect prevention measures, strengthening process control, andtackling difcult quality issues, and has continued to carry out research on reducing waste and ungraded products.
?Improve service abilityWith marketing, R&D and manufacturing experts as the core, the Company strengthens the benchmarking and efcientcollaboration of products, technologies and capabilities, and continues to establish a “customer-centric” service model. Itforms a technical innovation path of joint R&D and results sharing with users, and helps users develop synchronously in theapplication of new materials with high-quality products and services.
?Protect customer privacyThe Company strengthens customer information management, strictly complies with information security regulations such asthe Data Security Law of the People's Republic of China, Personal Information Protection Law of the People's Republic of China,and Regulations of the People's Republic of China for Safety Protection of Computer Information Systems, and establishes amanagement system for customer information and privacy protection to effectively ensure customer information security andtransaction security. During the reporting period, no customer information leakage incidents occurred.
The overall employee management strategy of Bao Gang United Steel is decided by the Board of Directors and specificallyexecuted by the management. The Company has established a Nomination, Remuneration, Assessment Committee, withfunctional departments such as the General Affairs Department, HR and Organization Department, and Planning Departmentresponsible for managing various affairs such as remuneration and benets, labor rights and interests, employee training and postpromotion, and all employees being covered step by step.
Bao Gang United Steel comprehensively implements the requirements of the Labor Law of the People's Republic of China andProvisions on Prohibiting the Use of Child Labor, to effectively safeguard the legitimate rights and interests of employees. Fairtreatment is given to employees of different genders, ages, educational backgrounds, ethnicities, religious beliefs, and culturalbackgrounds. Any form of employment discrimination and workplace harassment is opposed. The use of child labor and forcedlabor is prohibited. Employees' personal privacy is protected. During the reporting period, the Company did not experience anyincidents of child labor, forced labor, human trafcking, discrimination, or harassment.Bao Gang United Steel continues to strengthen the construction of its remuneration and benets system. It pays the ve socialinsurances and one housing fund, as well as enterprise annuities legally and timely, and provides employees with competitiveworking conditions and remuneration and benets. It also implements the supplementary medical insurance and supplementarypension insurance systems in accordance with the relevant requirements of the Corporation to offer comprehensive protection foremployees.
?Proactively respond to complaintsThe Company implements the customer management system Management Measures for Handling of Product Objectionsand Customer Quality Complaints of Bao Gang United Steel, and gradually forms a relatively complete quality creditstandard system. It establishes the “Bao Gang United Steel E-commerce” WeChat mini-program, a customer feedbackchannel, to quickly respond to and handle customer complaints and grievances, and applies the 8D reporting methodto implement rectification and solidify effective measures, which provides support for reducing losses arising fromquality objections. In 2024, Bao Gang United Steel handled a total of 58 quality objections throughout the year, with acomprehensive customer satisfaction rate of 97.17%.
Optimization of customer serviceAdhering to the customer service concept of “meeting customer needs, serving the market, and achieving win-win results”,Bao Gang United Steel formulates the Management Measures for Steel Products and Services of Bao Gang United Steel,establishes a three-dimensional service model integrating “production, sales, research and application”, continuouslyoptimizes the service system, actively provides value-added services, to create a closer and more integrated developmentcommunity with customers.
Employee development
Care for employee growth
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2024 Sustainability Report
Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
?Bias towards key positions, high-level technical and skilled talents, and frontline operation positions;
?Optimize the salary structure, determine the fixed-to-floating ratio of remuneration based on thedifferent characteristics of positions;
?Establish a distribution orientation where leading cadres have “low subsistence allowances, highincentives, and unstable income”, frontline employees have “basic salary, incentives, and relativelystable income”, and high-level talents and researchers have “high subsistence allowances, strongincentives, and competitive income”.
Salary distribution management method
Talent introduction
Talent promotion
Strengthen democratic management
Bao Gang United Steel insists on improving the collective consultation-based mechanism for joint decision-making.Walkaround inspections by Workers’ Congress and employee representatives are conducted to effectively listen toemployee representatives' suggestions for enterprise development. Bao Gang United Steel insists on enterprise affairstransparency. The Company's ofcial website and WeChat are used to disclose important matters related to employees andenterprise development to effectively safeguard employees' rights to know, participate, express, and supervise. In 2024, allproposals from the Workers’ Congress were tracked and processed throughout the process, with a 100% response rate, andthe proportion of active employees among labor union members reached 100%.
The Second Session of the Second Workers’Congress of Bao Gang United Steel
with athe proportion of active employees among labor
union members reachedIn 2024100%
response rate
100%
Promote talent development
In line with the talent planning and deployment of Baogang Group, Bao Gang United Steel constructs a comprehensive talentintroduction, cultivation, and utilization system with enhancing the talent competitiveness and market competitiveness of BaoGang United Steel as the core, optimizing the talent development ecosystem as the main line, deepening the reform of talentsystems and mechanisms as the driving force, and building a high-level talent team as the key point. It respects, trusts andencourages talents and helps them success, and continuously strengthens and improves its talent work.
The Company implements the national decisions and deployments to stabilize and ensure employment. In 2024, it recruited 690new employees through campus recruitment, social recruitment, order-based classes, veteran resettlement, and introductionof mature talents. Among them, there were 2 doctoral students and 29 postgraduate students. The Company encouragessubordinate companies to independently “seek talents”, quickly introduce “high-end talents”, vie for “urgently-neededtalents”, and recruit “mature talents”. In 2024, it conducted on-site engineer training for undergraduates from universities inthe autonomous region for the rst time, and innovated the “3+0.5+0.5” order-based training model and multi-level internshipsubsidy incentive mechanism. It undertakes and organizes internship and practical activities for 400 students from TsinghuaUniversity, University of Science and Technology Beijing, Northeastern University, Inner Mongolia University of Science andTechnology, etc., which further promotes school-locality and school-enterprise cooperation and exchanges.
According to the Management Measures for Management Positions andCadre Hierarchy System of Baogang Group (Edition 2024) and other relevantregulations of the Corporation, the Company clarifies the job qualificationconditions, standardizes the selection and appointment procedures, andimproves the training mechanism for level A-F managers. At the same time,it carries out reforms and innovations in the technical and business sequenceteam, and forms a talent development channel with vertical promotion stagesand horizontal integration bridges.In 2024, the Company established a “dual-track” cadre management systembased on dynamic grade determination by departments, with positionmanagement and performance management as the core, and gradualaccumulation and improvement of job levels and personnel levels. It promotedthe reform of the management sequence, formulated and verified themanagers' integral register, and applied it to the determination of personnellevels, grades, and job levels. The reform of management positions and cadrehierarchy system basically achieved a smooth transition.
new employees through campus recruitment, socialrecruitment, order-based classes, veteran resettlement,and introduction of mature talents. Among them
doctoral studentspostgraduate
students
In 2024response rate
there were
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2024 Sustainability Report
Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Case: Bao Gang United Steel improves product quality and quantity improvement by establishing technicaland business sequence
All organizations and workshops conduct comprehensive job skill training; preparefor national and industry-level vocational skill competitions such as the “ShagangCup” and “Magang Mining Cup”; participate in training classes for team leaders insteel enterprises to improve practical management skills, and international weldingengineer research programs.
Strengthen training of
skilled operators
Scientically plan and implement training programs for technical and businesspersonnel, and enhance their abilities in technological innovation, transformation ofscientic and technological achievements, and solving practical production problems.
Strengthen training ofprofessional technicalbackbones
Conduct training classes for managers in various elds such as safety, production,equipment, comprehensive management, and compliance to enhance theircapabilities and qualities, and improve the overall quality of the cadre team.Strengthenmanager training
Digital training systemRequirementSurvey management, evaluation management, assessment management
Online, Ofine, OMO; internal training, external training; practical operation, on-the-job
training (OJT); project-based training, map-based trainingPlanPlan management
Project monitoringEffectiveness evaluationData report
Resource managementBudget management
EvaluationImplementedfrom
Bao Gang United Steel attaches importance to the construction of its talent team. In order to broaden the channelsfor talent growth, strengthen the construction of talent echelons, and stimulate the entrepreneurial vitality ofemployees, the Company has comprehensively promoted the reform of its technical and business sequence, andbuilt a development channel consisting of three sub sequences: technical sequence, business sequence, andresearch sequence, totaling seven levels. According to the reform concept of “refined management and strongtechnical business”, in 2024 the proportion of technical positions in Bao Gang United Steel increased from 14%to 17%, the proportion of business positions increased from 5.56% to 6.5%, the proportion of research positionsincreased from 0.31% to 0.43%,The total proportion of technical and business sequence positions increasedfrom 19.87% to 23.93%. The strict management of talents at levels seven to five has highlighted the subjectivity,importance, authority, comprehensiveness, leadership, and foresight of high-end talents in various professionalelds, the on-demand cultivation of talents at levels four to three has strengthened the role of technical talents invarious professional elds, and the priority development of talents at levels two to one has consolidated the talentfoundation, which helps the formation of a “pyramid” job position with a reasonable structure, scientic echelon,and professional coverage, and injects continuous talent vitality into the Company.
Position Sequence Hierarchy Chart
Management
sequence
Technicalsequence
Businesssequence
Researchsequence
SkillsequenceChief Technical
ExpertTechnical
expertSenior technical
supervisorTechnicalsupervisorRegional technical
supervisorRegional technicalsupervisorTechnical
assistant
BusinessDirectorSalesman
ResearcherBusinesssupervisor
Deputy principal
researcher
Assistant
Researcher
Businessmanager
Principal
researcherSenior business
manager
Senior
researcherBusinessdirector
Special
researcherChief business
director
Chief
researcher
Chief scientist / Economist / Managerialist, etc.Level E+Level D+Level C+
Level ELevel DLevel C
Level F
Level BLevel A
Chief skill masterOperation expertSenior technicianTechnicianSenior workerIntermediate workerPrimary worker
Skill master
The Company adopts a training organization and operation model that involves tiered management and responsibility byorganizations, and active employee participation. This model comprehensively enhances training quality and efciency frommultiple dimensions, innovates training methods, and improves the quality of training work. In 2024, the Company continuedto promote the expansion of training work towards digital, platform-based, and cloud-based training models. It investedRMB 12 million in vocational education funds, completed 2,203 training projects, with 278,000 participants and a trainingcoverage rate of 100%. A “7+3+N” labor competition structure was gradually formed, with a competition participation rateof 100%.
in vocational education fundstraining projectsparticipants
a training coverage rate ofIn 2024It invested RMB
million
completed2,203
with
278,000100%
Improve efciency and reduce costs
Opening Meeting of Theory Exam of Vocational Skills Competition ofBao Gang United Steel in 2024
Bao Gang United Steel Holds the 2024 Vocational Skills Competition forContinuous Casting Workers
Talent training
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2024 Sustainability Report
Governance
Promote stability like a rock
Environment“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
?Indicators and goals
IndicatorUnit2024Total number of employeesPerson25,432Turnover rate of employees%0.35Labour contract signing rate%100Social insurance coverage rate%100Investment in employee trainingRMB ten thousand1,200Per capita duration of employee trainingHour225
Employee training coverage rate%100
Unit: PersonUnit: Person
Turnover rate ofmale employees
Turnover rate offemale employees
Turnover rate of employeesaged below 30
2,069
5,941
9,175
8,247
21,650
3,782Number ofemployees agedbelow 30
Number ofemployees aged30-40
Number ofemployees aged40-50
Number ofemployees agedabove 50
Number of maleemployees
Number of femaleemployees
Turnover rate of employeesaged 40-50
Turnover rate of employeesaged 30-40Turnover rate of employeesaged above 50
57%
82%
8%5%
5%43%
?Governance
Bao Gang United Steel establishes a Work Safety Committee and an Occupational Disease Prevention Committee, sets up aspecialized safety management body (Safety Management Department), appoints a safety director and full-time work safetymanagers, develops the All-staff Work Safety Responsibility System and All-staff Work Safety Responsibility List of Bao GangUnited Steel, conducts annual evaluation of the implementation of the all-staff work safety responsibility system, regularlyorganizes meetings of the Work Safety Committee and safety work meetings to study and deploy work safety production,and organizes and carries out special safety inspections to effectively build a solid defense line for enterprise work safetyproduction.
Enrich employee lifeBao Gang United Steel deepens the care service system with clear levels, different focuses, and organic connections,which covers hardship assistance, warm condolences, life services, and protection of women's rights and interests. Throughactivities such as spring condolences, “Summer Coolness” care, and autumn scholarship programs, employees feel thewarmth of the corporate family. At the same time, the Company focuses on enriching employees' cultural and sports life,encourages employees to actively participate in various cultural performances, and organizes chess and air volleyballcompetitions at Bao Gang United Steel, to create a healthy and positive company culture.
Ironmaking Plant Carries Out the 2024 “Autumn Scholarship forExcellence in Education” Activity
Bao Gang United Steel's First Employee Chess (Chinese Chess, Go,Checkers) Competition
Bao Gang United Steel Holds the Fourth Employee Air VolleyballCompetition
Number of Employees by Age
Employee Turnover Rate by Gender
Number of Employees by Gender
Employee Turnover Rate by Age
Labor Union of Bao Gang United Steel Purchases Drinking Water Puriersfor Mining Units
Ensure safety and healthBao Gang United Steel is committed to building a comprehensive occupational health and safety management system,comprehensively promoting a dual prevention mechanism, continuously improving the level of information-based worksafety, striving to create a safety culture battleeld, and creating a safe and healthy working environment for employees. In2024, Bao Gang United Steel invested RMB 203 million in work safety and achieved zero work safety accidents.
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2024 Sustainability Report
Governance
Promote stability like a rock
Environment“Steel” flowers bloom with green vitality
Society
Build dreams and benefit the people
?Impact, risk, and opportunity management
Industrycategory
Risk pointExisting risksControl measuresNon-coal mineSlopeCollapse
Use pre-splitting controlled blasting technology for near slope blasting; conductall-weather radar monitoring and no less than three manual inspections perweek for slopes, with slope cutting and unloading if necessary; drill drainageholes in water-seeping slopes for drainage; conduct acceptance according topre-splitting near slope blasting standards.Metal smelting
ConvertersmeltingGas holder
Other explosions,object strikes, burns,res, vehicle injuries
Keep areas for molten metal smelting and transportation (lifting) dry; ensurethe proper functioning of safety monitoring, control, interlock, and reghtingequipment; provide labor protection equipment and emergency supplies thatmeet national and industry standards.Metal rolling
Roll disassemblyand assemblyoperations
Object strikes,
mechanical injuries,lifting injuries, otherinjuries
Inspect tools before operations to ensure they are intact; strictly follow safetyoperating procedures during disassembly and assembly; provide laborprotection equipment and emergency supplies that meet national and industrystandards.Metallurgicalindustry andtrade
Infrastructuremaintenanceand repair work
Object strikeFall from height
Mechanical injury
Strictly follow safety operating procedures; ensure that special operationpersonnel work with certicates; ensure the proper functioning of equipmentinterlocks and protective devices.
Promote dual-prevention mechanism
Bao Gang United Steel streamlines and improves its safety management system, and formulates the Management Measuresfor Work Safety Standardization of Bao Gang United Steel and Management Measures for Hazardous Operations of BaoGang United Steel which clarify the management responsibilities, requirements, creation standards, and assessment detailsfor work safety standardization. It formulates the Three-Year Action Plan for Work Safety Improvement of Bao Gang UnitedSteel (2024-2026) and advances the three-year action plan for work safety improvement , to ensure the stable and smoothwork safety throughout the year. In 2024, the Company passed the GB/T45001:2020/IS045001:2018 Occupational HealthManagement System re-certication and obtained the certicate.To further implement the main responsibility of Bao Gang United Steel for work safety, carry out in-depth hierarchicalsafety risk control and safety hazard investigation and governance work, the Company compiles the Guidance Manual forHierarchical Control of Work Safety Risks and Hazard Management for identifying and controlling risks from the source,and scientically and promptly investigating and managing safety hazards, revises and les the Comprehensive EmergencyPlan for Work Safety Accidents of Bao Gang United Steel, issues the Learning Manual for Major Accident Hazard JudgmentStandards, organizes special studies on “interpretation of major accident hazard judgment standards” and online specialexams on major accident hazard judgment standards and other activities, and carries out activities such as “one specialinspection per month”, to ensure that all potential safety hazards in the Company are dynamically eliminated.
Bao Gang United Steel has thoroughly carried out safety risk control activities, comprehensively identied potential safetyhazards, and scientically formulated management measures with the aim of achieving intrinsic safety. The Company's majorrisks are primarily concentrated in production processes across industries such as non-coal mining, metal smelting, metalrolling, and metallurgical trading. The prominent risks and control measures are as follows:
?Strategies
Dual-prevention mechanism work ow
Risk Level Diagram
A
BC
D
B
Major risks
DLow risk
High risk
CGeneral risk
A
DCBA
C
B
AAAB
Structuralimportance
Team
★★★★★★★★★★★★★
Controlmeasure 4Controlmeasure 3Controlmeasure 2Controlmeasure 1
PlantCompany
OperationDepartment
Logic Schematic Diagram
Class I hazard sources refer to energy,Class II hazard sources refer to states.
Class I control measures are for managingthe nature of energy, such as reduction andsubstitution.Class II control measures are for managingenergy control measures, such as isolation,insulation, and warning.
Hierarchicalcontrol of risks
Investigationand control ofhidden hazards
Class I hazard
source
Class I control
measure
Class II control
measure
Development ofcontrol measures
List of hazardidentication
SeverityPossibilityRisks
FailureHazard
Class II hazardsource
Hazard sourceidentication
Control of hiddenhazards
Risk assessmentgrading
Investigationmechanismoperation
Hazardsource
Controlmeasures
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Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality
Society
Build dreams and benefit the people
?Indicators and goalsIndicatorUnit2024Organize safety emergency drillsTimes1,462Coverage rate of safety risk protection training%100Number of work safety accidentsNos.0Number of employees who died due to work-related injuriesPerson0
Work injury rate%0.033Lost working days due to work-related injuries Day806Number of lostworking days due to work-related injuries per million revenue Day0.012
Million-hour injury rate-0.17
?Governance
?Indicators and goals
Bao Gang United Steel establishes a procurement leading team, with the general manager as the team leader, directors,deputy general managers, and assistant general managers as deputy team leaders, and heads of relevant functionaldepartments (units) as team members. The team implements the procurement system of Baogang Group, decides on majormatters such as the construction of the procurement management system and the selection of suppliers, takes chargeof the supervision of procurement, and studies important matters of internal control, risk management, and supply chainmanagement.
Safety culture development
Guarantee of occupational health and safety
Safety culture is an important component of enterprise safety culture construction. To enhance employees' safety awarenessand skills, and ensure the stable operation of the Company's work safety, the Company establishes 21 safety culture sites toshowcase the achievements of safety culture construction, utilizes display boards, electronic promotional screens, WeChat,and other media to comprehensively promote safety culture, carries out activities such as “Safety Cup”, “Safety ActivityMonth”, and “Safety Warning Month” to strengthen employees' condence in work safety, and organizes safety lectures andspecial safety training to enhance the safety literacy of employees.
Bao Gang United Steel improves the supplier management system, optimizes procurement channels, and continuouslyenhances the social responsibility level of suppliers based on the principles of fairness, justice, integrity, and quality, the goalof establishing a transparent, efcient, compliant, and continuously competitive procurement management system, and themanagement experiences learned from advanced steel mills.The Company deeply implements the “reassurance project”, expands “1 center + 4 stations” medical services, and activelyholds various mental health lectures on topics like psychological health and parent-child relationships. An institution wasentrusted to test 3,988 occupational hazard factor points at Bao Gang United Steel, with a 97.1% compliance rate, and totest sealed source instruments and radiation devices with radioactive occupational hazard factors, with a 100% compliancerate. In 2024, Bao Gang United Steel experienced no new occupational diseases and the incidence rate of occupationaldiseases was zero.
Safety Knowledge Contest
Bao Gang United Steel and Baogang Hospital's Clinic in front of FactoryCollaborate to Conduct a Free Clinic Activity
Coal Coking Chemical Branch Holds a Special Training on PsychologicalHealth
Safety Publicity and Consultation Day Activity
Deepen industry cooperationAdhering to the development concept of “coexistence and co-prosperity” with partners, Bao Gang United Steel deepenscooperation with suppliers, customers, and other stakeholders, actively engages in exchanges with industry associations,peer enterprises, and universities, and jointly seeks industrial development.
Building a responsible supply chain
Promote safety informatization
To further enhance the level of information management in work safety work, Bao Gang United Steel has developedand constructed its own safety information system, which includes 21 modules such as risk management, hidden dangerinvestigation, education and training, and supervision and inspection, to achieve online control of safety processes andimprove safety management efciency. The Company has actively promoted the construction of its own work safety riskmonitoring and early warning system, and becomes a pilot unit for the construction of work safety risk monitoring and earlywarning system in iron and steel enterprises in China. The Company has comprehensively promoted the mechanization of“replacement of personnel with robots, reduction of personnel through automation, and intelligent unmanned operation”,achieving the replacement of personnel engaging in repetitive high-intensity work with robots and improving the level ofessential safety.
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2024 Sustainability Report
GovernancePromote stability like a rockEnvironment“Steel” flowers bloom with green vitality
SocietyBuild dreams and benefit the people
Suppliers are dynamically managed and reviewed, and are graded according to annual evaluationresults into Level A (excellent suppliers), Level B (key suppliers), Level C (qualied suppliers), LevelD (temporary suppliers), and Level E (unqualied suppliers).
Supplierreview
At the end of each supply year, the Company's relevant departments evaluate suppliers based onsubjective and objective indicators such as supply quality, price level, and contract fulllment.
Supplierevaluation
Supplier eligibility methods include eligibility through public bidding, recommended eligibility,self-recommended eligibility, and temporary eligibility.Suppliers of different categories submit various qualication materials such as in safety andenvironmental protection, and are granted access after review. This promotes the activeconstruction of a green supply chain.A special leading team for the governance of “escaping, emitting, leaking and dripping” issues inthe procurement eld is established. This promotes the construction clean suppliers.
Supplier
eligibility
Stabilize supply chain
Case: Coal Coking Chemical Branch achieves relative inventory balance of coking coal through multiplemeasures
Indicator
?Indicators and goals
IndicatorUnit2024Number of suppliersNos.1,632Number of suppliers audited and evaluated annuallyfor corporate social responsibility, environmental, and
other ESG-related aspects
Nos.1,632Proportion of procurement orders on the bidding and
procurement platform
%100
The Company implements the overall deployment strategy of “extreme cost reduction” and “inventory reduction”. Toensure stable and orderly production under low inventory, an inventory warning mechanism has been established andimplemented, which promotes coordinated transportation between varieties and coordinated fund payments.
The Company formulates the “Half Time, Half Task” Work Plan and Measures of Bao Gang United Steel, establishes specialtask forces for the procurement of ore in the area and in the Inner Mongolia, scrap steel, and alloys. By taking the initiativein procurement and increasing sourcing efforts and expanding supplier resources as goals, it continuously develops newsuppliers and new varieties of raw materials, fuels, and auxiliary materials, to enhance the Company's material procurementsupply assurance and cost reduction and efciency improvement capabilities.
Coal Coking Chemical Branch of Bao GangUnited Steel collaborates with the marketingcenter to adjust supply plans based on real-time inventory, dynamically manage coalstorage, ensure balanced coal structure, timelyreplenishment of single coal inventory, andscientific and reasonable usage ratios. Byimproving internal production organizationand coordination mechanisms, the efficiency ofcoal unloading by trains and trucks in the coalpreparation system is enhanced, and the reservesof single coals in the blended coal are balanced.
Coal Coking Chemical Branch Dynamically Manages Coal Storage
Inventory management
Procurement management
Strengthen supplier managementThe Company conducts supplier eligibility, review, evaluation, and exit work in accordance with internal systems such as theManagement Measures for Material Suppliers of Bao Gang United Steel, and focuses on building a responsible supply chain.
?Strategies
?Impact, risk, and opportunity management
Supply chain disruption risks may have a signicant impact on the Company's business. For Bao Gang United Steel, thereare mainly supply quality risks and supplier default risks, both of which have short-term impacts on the Company's supplychain safety.
RisksMeasuresSupply quality risk
Guide procurement departments to complete raw material and fuel procurement tasksaccording to production needs, effectively constrain supplier supply quality, and improveprocurement cost performance.Supplier default risk
Collect performance bonds before contract fulllment, and deduct penalties according tothe agreement when suppliers default;Formulate the Management Measures for Extension of Raw Material and Fuel ProcurementContracts of Bao Gang United Steel, and ensure that production stability and procurementcosts uctuate within controllable ranges.
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2024 Sustainability Report
GovernancePromote stability like a rock
Environment
“Steel” flowers bloom with green vitality
Society
Build dreams and benefit the people
Bao Gang United Steel integrates the resource advantages of the assisted regions to continuously promote rural economicdevelopment and social progress. In 2024, subordinate companies of Bao Gang United Steel purchased a total of RMB 5.6415million worth of consumption assistance products through Inner Mongolia Tie Hua Culture Industry Investment CO.,Ltd. andBaogang Group Wankai Industrial Co., Ltd., which effectively helped local farmers increase their income.
Promote industry exchanges
Promoting rural revitalizationBao Gang United Steel actively cooperates with state-owned enterprises, universities, and other institutions, collaborateswith Baowu Carbon and Sinopec for central-local cooperation to promote regional economic synergy, and engages inuniversity-enterprise cooperation with Northeastern University, University of Science and Technology Beijing, and ShanghaiUniversity to further enhance the Company's product R&D capabilities. At the same time, efforts are made to expandcooperation elds, which gradually extend from traditional elds to newer and more promising elds, to jointly discuss thebright future of industrial development.
Bao Gang United Steel and University of Science and Technology Beijing Held the Launch Ceremony of“Ten Thousand Students Entering Hundred Enterprises, Enterprise Tour of USTB Students” ActivityHonorary Certicate of“2024Outstanding Central-Local CooperationCase”
Bao Gang United Steel Honored as “2024 Outstanding Listed Company in RuralRevitalization Practices”
Strategic Product Seminar Site
Enhance people's well-being
Bao Gang United Steel actively responds to the national rural revitalization strategy, provides strong support for local
industrial development through targeted assistance; emphasizes strengthening communication and cooperation with
surrounding communities, leverages its professional and resource advantages to carry out charitable activities, and jointly
builds a harmonious and symbiotic community environment.
5.6415
million
Goal
Bao Gang United Steel monitors goal progress by establishing an indicator system from five aspects: cost, efficiency,collaboration, risk control, and green development. In the future, the Company will advance supply chain digitalization,enhance intelligence with new technologies; strengthen upstream and downstream collaborative innovation to improvecompetitiveness; implement green supply chain management, and increase environmental investment to promotesustainable development.
Bao Gang United Steel attaches great importance tothe construction of industry standardization systems,leverages its advantages in the rare earth steel field,actively participates in the development of international,national, industry, and group standards, and promotes thestandardized development of the industry. In 2024, BaoGang United Steel presided over (or participated in) theformulation and revision of a total of 8 ofcially releasedstandards, including 1 international standard, 3 nationalstandards, 1 industry standard, and 3 group standards.It also formulated and revised a total of 31 enterprisestandards and 26 provisional technical conditions.
Bao Gang United Steel Released the First Set of Group Standard forHigh-strength Steel Plates for Engineering Machinery in the Steel Industryin China
Lead industry standards
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2024 Sustainability Report
Governance
Promote stability like a rock
Environment“Steel” flowers bloom with green vitality
Society
Build dreams and benefit the people
Case: Bao Gang United Steel honored as “Advanced Organization for Blood Donation in Baotou City”On November 6, 2024, Bao Gang United Steel was honored as “Advanced Organization for Blood Donation in BaotouCity” for its outstanding contributions to ensuring the clinical blood supply and safety in Baotou City at the “SparkledRed” National Outstanding Blood Donor Story Tour. Its advanced deeds were recorded in the Record of BloodDonation in Baotou City. 6 employees of Bao Gang United Steel were recognized as advanced individuals for blooddonation in Baotou City.
Build a harmonious community
Bao Gang United Steel fulfills its responsibilities as a state-owned enterprise by actively engaging in communitydevelopment, improving the urban landscape, assisting in the construction of civilized cities, and continuously promotingthe construction of a new pattern of urban grassroots governance characterized by joint contribution, collaborativegovernance, and shared benets. Over the past year, Bao Gang United Steel’s youth volunteer team and youth assault teamorganized the volunteer service activity of“Celebrating the 70th Anniversary of the Factory's Establishment, Youth VolunteersShow Their Responsibility”, mobilized young members to participate in the “Learn from Lei Feng” charity fair. The Companyconducted 467 volunteer service activities throughout the year, with 13,780 participants, and several volunteer teams fromvarious organizations including Steel Pipe Branch were awarded the title of Autonomous Region-Level Advanced Collectivein Youth Volunteer Service, which signicantly enhanced the brand effect and social recognition of youth volunteer services.
The Company conductedwith
In 2024
volunteer service activities throughout the year13,780participants
Award Ceremony
Volunteer Service Activity of “Youth Contribution, Volunteer First, Strive to Become Lei Feng in the New Era” on Youth League Day
Volunteer Service Activity of “Celebrating the 70th Anniversary of the Factory's Establishment, Young Volunteers Show Their Responsibility”
Volunteer Service Activity of “Healthy Clinic in the Community”Activity of “Carrying forward the Spirit of Lei Feng and Establishing aSense of Serving the People” on Youth League Day
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GovernancePromote stability like a rock
Environment
“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
GOVERNANCE
Reform empowers a new situation, and governance upgrades bring a new chapter. Bao Gang United Steeltakes Party building as its core engine, deeply roots the spirit of the Third Plenary Session of the 20th CPCCentral Committee in its governance structure, and constructs a governance paradigm that deeply integratesParty leadership with modern enterprise systems. Anchored on the goal of modernizing governancecapabilities, it improves the risk prevention and compliance system based on the mechanism of “not daringto corrupt, not being able to corrupt, and not wanting to corrupt”, and consolidates the foundation ofsustainable development. At the same time, it takes technological innovation as its strategic pivot, optimizesthe allocation of R&D resources, promotes two-way breakthroughs in technological breakthroughs andtransformation of results, activates the “rst driving force” for high-quality development, contributes hard-core strength to serving national strategies and industrial upgrading, and demonstrates the benchmark valueof state-owned enterprise governance in the new era.
GovernancePromote stability like a rock
Key performance
studied
varieties and nearly
grades of new rare earth steel materials.
studies94%
categories
specic tasks, withThe “rst issue”was studied
The reform was carried out in
The Company owned and participated in the construction ofThe Company developednational scienticresearch platforms
provincialplatforms
academicianworkstations
the theoretical learning centergroup of the Party Committeeconducted
the completion rate of key tasks reaching
bribery or corruption incidentsor major administrative penalties due to unfair competitionThere were
no commercialThere were
no lawsuits
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6263
Governance
Promote stability like a rock
Environment“Steel” flowers bloom with green vitality2024 Sustainability Report
Society
Build dreams and benefit the people
Bao Gang United Steel persistently focuses on ideological construction, consolidates development synergy from multipledimensions such as “idle talk”, news publicity, ideology, and national united front against invasion, strengthens ideologicalfoundations, and injects powerful spiritual momentum for high-quality development.Adhering to the leadership of Party buildingAdhering to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Bao GangUnited Steel comprehensively implements the general requirements for Party building in the new era and the Party’sorganizational line in the new era, continues to play the leading role of Party building by taking forging a strong senseof community for the Chinese nation as the main line, e?ectively transforms the Party’s political and organizationaladvantages into the Company’s innovation and development advantages, and leads and guarantees the Company’shigh-quality development with high-quality Party building.
Party organizations at all levels of Bao Gang United Steel regard the study and implementation of Xi Jinping Thought onSocialism with Chinese Characteristics for a New Era as a major political task, deeply understand the signicance of the “twoestablishes”, strengthen the “four consciousnesses”, stay condent in the “four matters of condence”, and achieve the“two safeguards”. They strictly implement the “rst issue” learning system, promptly study and convey important speeches,articles, and instructions from General Secretary Xi Jinping, and arrange for their implementation. In 2024, the Company'sParty Committee studied the “rst issue” 36 times, conducted 24 studies by the theoretical learning center group of theParty Committee, held 7 discussions, and integrated them with actual work deployment, arrangement, and implementation.Meanwhile, they urge grassroots organizations to continuously improve the study quality of the theoretical learning centergroup, arrange for the inspection and observation of these studies, and achieve full coverage of inspection and observationacross all subordinate companies.
Uphold a rm political stand
Persistently focus on ideology
Bao Gang United Steel Arranges for Party-mass Work
The Company Organizes Training Class for Improving Ideological WorkCapabilities
The Company Was Awarded the Title of National Excellent MetallurgicalOrganization in Ideological and Political Work for 2023-2024
the Company's Party Committeestudied the “rst issue”
by the theoretical learning centergroup of the Party Committee
In 2024
times
conducted
studiesheld
discussions
Deepen “idle talk”
Deepen the working mechanism of “four understandings, ve talks, and six visits”, builda grid-based responsibility network, solve the urgent and difcult problems of employeeswith genuine care, and create a harmonious and stable development environment. BaoGang United Steel was awarded the title of National Excellent Metallurgical Organization inIdeological and Political Work for 2023-2024.
Strengthennews
publicity
Adhering to the concept of “publicity is also productivity, and strong brand is alsocompetitiveness”, the Company has built a three-dimensional communication pattern of“traditional media+new media+outdoor media”, with daily updates on ofcial social mediaaccounts, more than 1,100 pieces of information pushed annually, and more than 100,000video views on dedicated channels. The Company has cooperated with Baotou Airportto set up large billboards to display the corporate image in an all-round way and enhancebrand inuence.
Focus on
ideology
Uphold bottom line thinking, implement ideological work responsibilities, steadily promotethe “433” ideological work law, carry out standardized actions on the site, formulateemergency response rules for sudden public opinion, organize ideological special trainingcourses, and ensure the safety and controllability of the ideological eld.
Enhancenational united
front against
invasion
Carry out “one week and two months” activities with high quality, actively promote the“Internet + Ethnic Unity” initiative, regularly conduct the mass education practice activityof “feeling the Party's kindness, listening to the Party's words, and following the Party’spath”, create an “observable, sensible, and effective” ethnic communication and exchangeenvironment, and allow the awareness of the Chinese national community to be deeplyrooted in the hearts of the people.
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GovernancePromote stability like a rockEnvironment“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
Case: Promote the implementation of Party discipline education through multiple measuresIn 2024, Bao Gang United Steel organized Party discipline education with a high degree of ideological, political,and action consciousness. A work schedule clarifying 18 goals, key learning points, time nodes, and responsibledepartments was promptly formulated. Party lectures were delivered by the Company's Party Secretary and Chairmanpersonally, with over a hundred participants. A research group was established to conduct full-coverage researchand guidance on Party discipline education across all organizations. Party organizations at all levels were organizedto study the Regulations on Disciplinary Actions of the Communist Party of China and General Secretary Xi Jinping'sdiscourses on comprehensively strengthening Party construction through the establishment of the theoretical learningcenter group of the Party Committee, “three meetings and one lesson”, leading cadres' Party lectures, and thematicdiscussions, to ensure the effective implementation of Party discipline education.
Bao Gang United Steel has laid a solid foundation for Party building, strengthenedthe construction of primary Party organizations, and enhanced the “three basicsconstruction”. It standardized the guidance for the change work of 8 Party committees,held the reporting meeting on primary Party building work by Party organizationsecretaries, completed the 2023 Party building assessment for 26 Party committees(general branches) of Bao Gang United Steel, and promoted high-quality developmentled by high-quality Party building. Bao Gang United Steel has properly conducted the“two fees” budget and nancial management. It allocated RMB 5.3087 million of Partyfee for 2024 according to regulations, and regularly trained Party members to enhancethe cohesion and combat effectiveness of Party organizations and provide strong politicaland organizational guarantees for the high-quality development of the Company.
Consolidate the foundation
Special Party Lecture on Party Discipline Education
Demonstration Training Class for Party Branch Secretaries and Party Affairs Workers
It allocated RMBof Party fee for 2024according to regulation
5.3087
million
?Organize the annual reporting meeting on primary Party building work by Party organizationsecretaries;
?Complete the annual Party building assessment for 26 Party committees (general branches);
?Self-inspect 10 issues related to personnel work as feedback from superiors in inspections,audits, and special work.ConsolidateParty buildingresponsibilities
?Properly conduct the “two fees” budget and nancial management;
?Conduct the annual “excellence” campaign, and select 6 advanced Party committees and16 Party branch models;
?Promote the construction of “strong Party branches”, and establish 1 autonomous-region-level strong Party branch model.Strengthenorganizational
functions
?Create the Party building brand “Iron Shoulders Bear the Mission, Furnace Fire Reflectsthe Original Aspiration”, and build a Party building action system around Party members,benets, and services;
?Improve the Party building management information platform to enhance the efciency ofdaily Party building management;
?Explore the highlights of Party building in various organizations, and promote the linkage oftheory, organization, work, and other aspects.Innovate Partybuilding methods
?Standardize the Party member recruitment process, formulate an annual development plan,and ensure the quality of the Party member team;
?Hold training classes for Party organization secretaries and Party affairs workers to enhancetheir professional capabilities.Consolidate the
basic team
6667
Governance
Promote stability like a rockEnvironment
“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
The Company convenes and holds meetings of the Board of Shareholders in strict accordance withrelevant regulations and requirements. A combination of on-site and online voting is available toprovide convenience for shareholders to participate. The Company treats all shareholders equally,and effectively ensures all shareholders' equal rights to know and make decision on major companymatters.During tenure, directors fully exercise their rights, fulfill their obligations and responsibilities, andactively safeguard the legitimate rights and interests of the Company and all shareholders. TheCompany leverages the independence and professionalism of independent directors to continuouslyenhance the rationality, standardization, and scientific nature of company decisions. The specialcommittees of the Board of Directors fully play their roles in collecting, analyzing, and demonstratingdecision-making information to provide strong support for the decisions of the Board of Directors.
The Board of Supervisors fully performs its supervisory functions, oversees the Company's nancialstatus, raised funds, related transactions, periodic reports, insider information registrations, and thelegality and compliance of the duties performed by the Company's directors and senior managers,reflects the opinions of employees, and safeguards the legitimate rights and interests of theCompany, shareholders, and employees.
Board ofShareholders
Board ofSupervisorsStandardize corporate governance
Bao Gang United Steel establishes a scientific and reasonable governance architecture, clarifies the responsibilitiesof governance entities, with the Board of Directors, Board of Supervisors, and management each performing theirduties, to make the Company's operations more standardized and efficient. It actively responds to state-ownedenterprise reform policies, stimulates enterprise vitality, and improves operational e?ciency, to help enhance its marketcompetitiveness.
In accordance with the Company Law of the People's Republic of China and other laws, regulations, and regulatoryrequirements, Bao Gang United Steel revises certain provisions of the Articles of Association, and rules and regulationssuch as the Work Rules of Independent Directors, Work Rules of the Special Committee of the Board of Directors, andManagement Measures Raised Funds, and improves and perfects the corporate governance system.The Company establishes a modern corporate governance architecture consisting of the shareholders' meeting, Board ofDirectors, Board of Supervisors, and management, and forms a corporate governance system where the authority, decision-making, supervision, and execution bodies each perform their duties, take their responsibilities, operate in coordination, andeffectively balance each other, to continuously enhance the quality of the listed company. At the same time, the Companyadheres to the high integration of Party organization construction and corporate governance architecture. Major issues arerst studied by the Party committee to fully leverage the Party committee's role in “setting the direction, managing theoverall situation, and ensuring implementation”.
Bao Gang United Steel focused on the deployment of deepening and enhancing state-owned enterprise reform, aimingto strengthen core functions and improve core competitiveness, comprehensively accelerating the deepening andenhancing of state-owned enterprise reform, and fully advancing key tasks such as the reform of market-oriented operatingmechanisms, signicantly improving enterprise management and governance capabilities.In 2024, the Company issued the Comprehensive Reform Plan of Bao Gang United Steel, promoting the implementation of 9categories and 48 specic tasks, respectively setting work goals and measures and clarifying responsible leaders, responsibleorganizations and responsible persons, with a key task completion rate of 94%. Deepen the new round of tenure-basedcontract reform, set differentiated assessment indicators and weights according to the “stretch mechanism”, promotethe matching of performance indicators with jobresponsibilities and achieve full coverage of contract-based management. Continuously deepen the specialcampaigns for loss reduction and elimination, as wellas enterprise restructuring and reduction and addressthe operational losses of controlled and equity-participated companies with tailored strategies (“oneenterprise, one policy”). All consolidated subsidiariesunder control have fullled their loss reduction tasks,and the enterprise restructuring and reduction goalshave been achieved as planned.
Improvement of governance system
Deepen state-owned enterprise reform
Bao Gang United Steel participated in the Group's reform deepening and
enhancing action promotion meeting and the tenure-based contract signing
ceremony
Board of ShareholdersBoard of Supervisors
Board of DirectorsAudit committee
Strategy and ESG
Committee
Nomination, Remunerationand Assessment CommitteeManagement level
Board ofDirectors
In 2024, the Company convenedShareholders’smeetings
special meetings forindependent directorsmembers on the Board of Directors
Bao Gang United Steel was awarded the“Outstanding Practice Case of the Board ofDirectors for the Listed Company”by the Association for Public Companies
It received the highest
A-level (excellent) evaluationfrom the Shanghai Stock Exchange for
information disclosure
independent directors
female directors
Directors’meetings
Supervisors’meetings
Specialized Committee ofthe Board of Directors
Board of
1142
Board of
Board of
meetings of
1.The data is as of April 18th, 2025.
2.The data is as of April 18th, 2025.
6869
Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
?Governance
?StrategiesThe Company manages compliance risks through four compliance management lists, mainly including the legal andregulatory list, compliance risk list, key position compliance responsibility list, and process control list. In 2024, the Companyupdated compliance risks, increasing from 212 items to 216 items.
EffectivenessDecision-making levelBoard of Directors, Board of Supervisors and Compliance ManagementCommittee
Execution bodyAll organizations, branches and controlled subsidiaries
Management level
Management layer, lead department for compliance management,functional departments and organizations with management functions
Compliance awareness is more rmly
establishedOrganizational leadership is more
robustSystem construction is more completeMechanism operation is more smooth
Process management is morestandardizedRisk prevention and control are more
effective
?Impact, risk, and opportunity management
Improve compliance management
Strengthen compliance risk management
Bao Gang United Steel continuously improves the compliance operation mechanism, promotes the coordination andconnection of compliance management with the current management system, achieves the normalization and standardizationof compliance management work, and establishes routine compliance and major decision-making compliance reviewmechanisms. Issue the Compliance Management Measures of Bao Gang United Steel and the Three-Year ComplianceManagement Action Implementation Plan of Bao Gang United Steel (2023-2025), making the compliance managementsystem increasingly complete. Establish a “template library” for Bao Gang United Steel contracts, effectively preventingcontract risks. Promote business process and information digitization, laying a solid foundation for the company to updateand improve the compliance risk database.
The Company strengthens the management of major compliance risk events, ensuring effective identication and assessmentof compliance risks beforehand; fully understanding the specic circumstances of major compliance risk events during theprocess, collaborating internally, responding quickly, and actively taking countermeasures; and summarizing and reviewingafterward, improving the compliance risk list for the involved business areas, and continuously optimizing processes.Actively carry out compliance risk alert work, obtain compliance risk cases through multiple channels, and use internal andexternal typical and common compliance risk cases as carriers to conduct in-depth analysis, revealing risk points throughspecial meetings and case notications, effectively preventing compliance risks.
Case: Bao Gang United Steel strengthens the regular meeting mechanism for compliance managementBao Gang United Steel holds quarterly compliance managementmeetings, where they “set a theme, organize a learning session,and share a batch of cases”. These meetings report on theprogress of key compliance tasks for the quarter, study andcommunicate relevant compliance management systems, andshare typical cases, comprehensively enhancing the complianceawareness and work level of leaders and professionals in variousbusiness areas.
Build a compliance culture
The Company takes opportunities such as the “Civil Code PromotionMonth”, “National Low Carbon Day”, and “12·4” NationalConstitution Day to conduct centralized promotional activities. Carryout legal publicity through online compliance training courses, ofineorganization of various special lectures, cloud platform APP andother forms. All employees sign the Compliance Commitment Letter,ensuring that they act in accordance with regulations and operateaccording to rules, using “small compliance” in their positions tosupport the Company's “comprehensive compliance”, creating agood atmosphere that promotes full compliance.
Improvement of compliance system
Bao Gang United Steel regards compliant operation as the core pillar of high-quality development, based on integrityand compliance, comprehensively implementing national laws, regulations, and regulatory requirements, strictlycontrolling anti-corruption, anti-graft, and anti-unfair competition risks, actively responding to investor concerns byenhancing information disclosure transparency, injecting robust momentum for sustainable development.
Bao Gang United Steel strictly adheres to the Company Law of the People's Republic of China, Central EnterpriseCompliance Management Measures, and other relevant laws and regulations, continuously improving compliancemanagement policies and systems, actively practicing compliance culture, strengthening compliance management andcontrol, and creating a standardized and legalized operating environment.
Bao Gang United Steel established a compliance management committee, building a compliance management work systemcomposed of decision-making level, management level, and execution body, integrating compliance management intothe entire process of decision-making, management, execution, and supervision, achieving clear compliance managementresponsibility boundaries, implementation to positions, and accountability to individuals.The Party Secretary, Chairman, and General Manager of the Company, as the primary responsible persons for promoting theconstruction of the rule of law in Bao Gang United Steel, fulll the roles of key organizers, promoters, and practitioners ofcompliance management, ensuring that compliance management is advanced from top to bottom. The Chief ComplianceOfficer is the core management personnel for the Company's compliance management, directly responsible to theCompany's principal responsible person. Their main duties include overseeing compliance management affairs, leadingthe construction and operation of the compliance management system, organizing the lead department for compliancemanagement to carry out specic tasks, and serving as the key leader of the compliance management system. The Companyand its afliated departments, organizations, wholly-owned and controlled subsidiaries have set up 109 compliance ofcerswho possess compliance knowledge and review capabilities. They undertake compliance management and review tasks,communicate with the second and third lines of defense, and ensure the smooth progress of compliance management work.
Faithful and compliance management
Bao Gang United Steel holds the second quartercompliance management meeting
The Company's business legal risk and compliance guidancetraining course
7071
Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
Strengthen tax management
The Company strictly adheres to tax laws and regulations, actively establishes and improves the Company's tax managementsystem, and effectively prevents tax risks. The Company's nance department tax management group coordinates overall taxmanagement work, while providing tax guidance and consultation to branches and subsidiaries. The nance departments ofeach branch and subsidiary are responsible for the internal tax management of their respective companies.The Company, in accordance with relevant tax management systems, standardizes processes such as tax accounting,declaration and payment, tax file management, and tax-related contract management to ensure timely, accurate, andcompliant tax accounting processing. At the same time, the Company actively cooperates with tax authorities in inspectionsand supervision, effectively carrying out all tax-related work.In addition, Bao Gang United Steel conducts annual evaluations of the Company's compliance with national tax regulationsand internal tax management systems in routine operations, and promptly rectifies any identified issues. During thereporting period, there were no major case of tax violations.
?Indicators and goals
?Governance
In 2024, the Company reviewed 1,279 compliance items; achieved 100% compliance review for major decisions, importantsystems, and signicant contracts; and had no major litigation, arbitration, or other risk events.In 2025, Bao Gang United Steel will launch the “Enterprise Compliance Management Capability Enhancement Year”,continuously improve the compliance management system, strengthen the three lines of defense in compliance management;develop Bao Gang United Steel's “Compliance System Map, enrich compliance guidelines and manuals across businessareas, optimize the quarterly compliance management meeting mechanism, enhance litigation case management, improvesupervision and assessment mechanisms, strengthen compliance awareness among employees, and elevate the level of law-based enterprise management.
Bao Gang United Steel precisely focuses on key areas with high integrity risks and weak supervision, adding disciplinarycommittees in 14 key units and adding full-time disciplinary inspection cadres in another 3 organizations, effectivelyimproving the quality and efciency of supervision work.
Bao Gang United Steel has established a comprehensive anti-commercial bribery and anti-corruption mechanism, andthrough regular warning education activities, strengthens employees' integrity awareness, resolutely upholds discipline andcombats corruption, providing strong support for the Company's high-quality development.
Managementof internal taxpersonnel
Invoiceand tax lemanagement
Tax-relatedcontractmanagement
Collection oftax policiesand trainingmanagementfor taxpersonnel
Taxinspectionresponseand self-inspectionmanagementTaxaccounting,declaration,and paymentmanagement
Tax-relatedaccountingand nancialstatementmanagement
Tax riskmanagement
Tax planningmanagement
?Strategies
Based on the current management status and issues identied through inspections, audits, and other work, the Companycategorizes integrity risks into ideological and moral risks, key area risks, external environment risks, institutional mechanismrisks, job responsibility risks, and business process risks. In 2024, the Company supervised and guided various units toidentify 1,027 integrity risks, optimized 258 work processes, promoted the revision and improvement of 168 systems, andfacilitated the resolution of 73 issues.
Risk typeDscription
Ideological and moral risks
Insufcient in-depth study of Xi Jinping’s Thought on Socialism with ChineseCharacteristics for a New Era, leading to wavering ideals and beliefs. Weaksense of purpose in work, with serious formalism and bureaucracy. Poor sense ofintegrity and self-discipline, lacking in family ethos construction.Key area risks
In numerous functional business areas such as strategic management,procurement and marketing, and engineering construction, due to their highlevel of specialization, there is a tendency for internal management to be non-standard and insufcient risk identication.External environment risk
Due to the impact of industry “unspoken rules”, company personnel may exhibitbehavioral misconduct, constituting illegal activities such as commercial bribery.Institutional mechanism risks
Incomplete regulations on the exercise of authority, large discretionary space,and lack of checks and balances and supervision.Position responsibility risks
Due to the special nature of position responsibilities, inuenced by requests fromspecic related parties, leaders or key personnel may deviate from behavioralnorms and professional ethics, leading to improper performance or inaction.Business process risks
Non-standard business processes or lack of control and supervision, failing toform closed-loop management, with loopholes that may allow personnel toexploit their positions for personal gain or engage in power-money transactions.
Anti-commercial bribery and anti-corruption
In 2024
the Company supervised and guided various units to identify
2581,027
systems
issues
work processesoptimized
promoted the revision and improvement offacilitated the resolution of
integrity risks
7273
Governance
Promote stability like a rockEnvironment“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
?Impact, risk, and opportunity management
The Company continues to improve the anti-corruption institutional system, carries out honest administration and anti-corruption activities, and cultivates a culture of integrity, providing a solid foundation for long-term stable development.
Bao Gang United Steel insists on integrating system construction throughout the entire process and all aspects of honestadministration and anti-corruption, improving the institutional system, strictly enforcing systems, and enhancing governanceefficiency. The Company focuses on key areas, critical links, and key positions, especially high-risk areas, positions, andmanagement positions with authority over “people, finance, materials, and affairs”, to improve a transparent executionsystem. Systematically organize regulations according to the principle of correspondence between authority and systems,ensuring that where there is authority, there are systems, and where there are risks, there are preventive measures.
Improve the institutional system
Bao Gang United Steel conducts detailed and practical routine supervision, carrying out special rectification on typical andprominent issues found during supervision, inspection, and investigation. Advance the “three no-corruptions” in an integratedmanner, promote the integration of “punishment, prevention, and governance”, maintain a high-pressure stance againstcorruption, deepen case-driven reforms, and promote normalized and long-term governance. Continue to consolidate the spiritof the Central Committee's eight-point decision, strengthen supervision and reminders on key nodes and “key minorities”, persistin special governance such as “extortion during vehicle unloading” and key clue verication, and thoroughly address the issues ofmisconduct and corruption around the masses, fostering a new atmosphere of integrity. Adhere to strict investigation of variousproblem clues, and do a good job in the “second half of the article” of case handling, seriously addressing issues such as loopholesin the system or inadequate implementation of the system found during the investigation.
Routine supervision and inspection
Create an anti-corruption atmosphereBao Gang United Steel urges all organizations to conscientiously study and implement the newly revised Regulationson Disciplinary Actions of the Communist Party of China, deepen the use of the “positive integrity education + negativewarning education” collaborative mechanism, and promote the normalization and long-term effectiveness of party disciplineeducation. Targetedly, through various channels such as holding warning education conferences, party committee theoreticalstudy center group meetings, and “three meetings and one class”, typical cases are reported to strengthen warningeducation, with a 100% coverage rate in all units.
?Indicators and goals
In 2024, the Company will achieve full coverage of discipline and law education for party members and employees. In2025, the Company will achieve full coverage of honest administration and anti-corruption education and training for partymembers and employees.
Reporting and whistleblower protectionBao Gang United Steel fully leverages the role of supervision synergy, openly and smoothly provides channels such asreporting boxes, and reporting hotlines to encourage employees, customers, suppliers, and any other informed individualsto report violations of discipline and law such as corruption. The Company publicizes the complaint and reportingmechanism through Baotou Daily, WeChat public account, internal work notices, and other forms to further enhanceemployees' awareness of the Company's reporting channels. At the same time, the Company attaches great importance toprotecting whistleblowers, strictly ensures the condentiality of reporting information and whistleblowers, and safeguardsthe legitimate rights and interests of whistleblowers.
When planning toestablish a jointventure with partners:
analyze and sort outthe anti-monopolyrisks of operatorconcentration.
When adding newstrategic cooperationor joint ventureprojects: conductinternal review andevaluation of operatorconcentration.
When attending industry associationmeetings, product orderingmeetings, etc.: avoid discussingprice, market segmentation, etc.with competitors or upstream anddownstream customers; avoid usingone's market dominance to requirethe counterparty to trade withoneself or a designated third party,thereby creating the risk of abusingmarket dominance.Bao Gang United Steel held 2024 Meetings on Party Conduct andUpholding Integrity Construction and Anti-corruption Work, and WarningEducation Conference
Bao Gang United Steel's Party Organization conducts integrity educationactivities on party members' and cadres' knowledge of discipline and law
The Company strictly adheres to the Anti-monopoly Law of the People's Republic of China and the Anti-unfair CompetitionLaw of the People's Republic of China. Pay attention to the risks of anti-monopoly, concentration of operators, and abuse ofmarket dominance that may be faced in strategic cooperation, joint ventures, and other areas, and include fair competitionin the scope of compliance review. Regularly organize training and seminars, inviting industry experts to teach, to enhanceemployees' ability to identify and prevent unfair competition practices. Establish an internal supervision mechanism for anti-unfair competition to provide strong support for the Company's steady development. During the reporting period, theCompany was not involved in any litigation or signicant administrative penalties due to unfair competition practices.
Anti-unfair competition
7475
Governance
Promote stability like a rock
Environment“Steel” flowers bloom with green vitality2024 Sustainability Report
Society
Build dreams and benefit the people
Communicationand exchange with
investors
The Company adheres to the “inviting in” and “going out” strategy. On one hand, the Company,in collaboration with the exchange and securities rms, organized two “Investors Visit Bao GangUnited Steel” activities, where more than 70 industry professionals visited and learned about theCompany's operations. Through strategic product seminars, the Company invited more than 40professionals for research. In addition, the Company received visits from multiple securities rmsand investment institutions. On the other hand, the Company's leadership led roadshows inmultiple locations, promoting the Company's strengths, with more than 30 fund companies andsecurities rms participating, effectively enhancing investors' recognition and condence in thecompany.Routine
communicationchannels are smooth
The Company actively responds to investors through various channels, patiently answersconsultation calls, and addresses inquiries via interactive platforms and collective onlinereception activities. Hold three regular report performance briengs, innovatively addingexplanation and presentation sessions.In terms of publicopinion managementand media promotion
The Company strengthens online public opinion monitoring, releases highlight news on popularplatforms, and promotes company performance through cooperative media to enhanceshareholders' understanding of major matters.Market value
management isorderly
The Company monitors stock prices daily and compares them with peers, forming reports;analyzes shareholder registers monthly, tracks changes in key investors' holdings; compares datafrom 28 steel companies to assess its position, drafts analysis reports, and formulates measures.Protection of rights
and interests ofshareholders
To enhance investor condence, the Company has released a buyback plan. It repurchased116,322,900 shares with its own funds through centralized bidding trading, which will completethe cancellation in March, 2025. The Company has formulated a market value management planto safeguard company value and shareholder rights, improving long-term incentive mechanisms.
The Science and Technology Management Committee focuses on the following responsibilitiesClarify the strategic goals and guidingprinciples of technological innovation;
Approve R&D and reward expenses forscientic research projects, and carry outsupervision and management of the useof R&D funds;
Coordinate and solve key anddifcult problems in scienticresearch activities that cannot besolved by the execution body;
Supervise and managethe work of technologyand execution bodiesin scientic researchmanagement, and guide theestablishment of a technicalexpert database in scienticresearch management;
Approve the action plan fortechnological innovation;Provide resource allocation andguarantees for the implementationof the technological innovationaction plan;
Review and approve annualresearch work plans and annualresearch projects;
Review and approveoutstanding scientic andtechnological personneland achievements;Review and approval of major foreigntechnical cooperation projects ortechnology (results) export projects;
Convene a science and technologyconference to commend and rewardorganizations and individuals thathave achieved outstanding result.
Supervise and guide theprocess of technologicalinnovation activities, scienceand technology managementactivities, and research projects;
The Scienceand Technology
Management
Committee
Bao Gang United Steel attaches great importance to the protection of investors' rights, respects investors, rewards investors,and protects investors. In accordance with relevant laws and regulations and the Shanghai Stock Exchange's regulations oninformation disclosure by listed companies, the Company promotes communication and interaction with investors throughvarious channels, laying a solid foundation for the Company's sustained and stable development.
Bao Gang United Steel established the “Science and Technology Management Committee”, adhering to the workingprinciples of “efficiency, pragmatism, simplicity, transparency, and compliance”, strengthens the management of theCompany's technology innovation work, and ensures the orderly advancement of the Company's technology management.
Investor relations management
Governance
Small and medium investors visit Bao Gang United SteelBao Gang United Steel hosts the 2024 Baiyun Forum - High-end Forum
on RareEarth Applications in Steel and StrategicProduct Seminar on“PremiumQualitySteel + Rare Earth Steel Series
Innovation-driven developmentBao Gang United Steel actively responds to the national and regional strategic call for “implementing innovation-drivendevelopment”, adheres to the guidance of technological innovation and progress, focuses on improving organizationalmechanism innovation, continuously stimulates the vitality of research entities, enhances R&D e?ciency, strengthensindependent innovation capabilities, accelerates the construction of an innovative Bao Gang United Steel, with annualR&D investment intensity reaching 5.46%, making technological innovation the primary driving force for the Company'sdevelopment.
7677
Governance
Promote stability like a rockEnvironment“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
RiskRisk descriptionMeasures
Technicalrisks
The development of new technologiesmay cause technical difculties to beovercome, or the expected results to notbe achieved due to the immaturity of thetechnology, which may cause scienticresearch projects to be delayed or fail.
?Strengthen feasibility studies and assessments beforetechnology R&D, and comprehensively analyze technicaldifculties and potential risks;
?Establish technical backup plans to enable timely switching oradjustment when encountering technical problems;
?Continue to track technological development trends andintroduce external technical resources.
Marketrisks
The market demand is unstable andchanges rapidly, forecasts of marketdemand for new technologies and newproducts are inaccurate, and it is difcultto transform innovative results intoactual value;The market competition is erce, andcompetitors may launch similar or moreadvanced technologies and productsmore quickly to seize market share.
?Strengthen market research and improve the accuracy ofmarket forecasts;
?Develop diversied market strategies to reduce dependenceon a single market;
?Adjust innovation direction and product functions in a timelymanner according to market changes to improve productmarket adaptability.
Bao Gang United Steel revised and issued the Scientific Research Project Management Measures of Bao Gang UnitedSteel and issued the Notice on Further Adjustment and Optimization of Relevant Management Authority of ScientificResearch Institutions. Optimize the promotion and evaluation mechanism for scientic research talents, and fully stimulateand mobilize the creative vitality and motivation of scientic researchers through equity, options, dividends, etc. Establishlong-term and regular industry-university-research cooperation mechanisms with scientic research institutes, strengtheninternal and external cross-unit collaborative cooperation on common technologies, and realize resource sharing. Establisha rigid growth mechanism for R&D investment, and improve a scientic research management system with clear powersand functions, scientic evaluation, and tolerance and error correction. Establish a smoother process for the use of scienticresearch funds, and grant greater rights to introduce and use talent. Establish a scientific and complete fault-tolerantmechanism for scientic and technological innovation, and encourage scientic and technological personnel to take positiveactions and innovate boldly.In 2024, the Company owned and participated inthe construction of 2 national scientific researchplatforms, 3 provincial platforms, and 2 academicianworkstations. Promote the construction of atalent enclave, establish “Beijing Baogang SteelTechnology Co., Ltd.”, and obtained approval as alisted institution outside the autonomous region's“Mengkeju” collaborative innovation zone.
Bao Gang United Steel optimizes the layout of scientic research projects around national strategies, industry development,market demand and corporate innovation. In 2024, the Company undertook and would participate in two sub-projects of the2030 National Special R&D Plan for New Materials, one technology innovation center project of rare earth new materials, onekey laboratory funding subsidy project of the autonomous region, and ve key Class A projects of Baogang Group; acceleratethe cultivation of original scientic research results. Three scientic research projects have been approved for central guidanceof local science and technology development funds; relying on the autonomous region's rare earth steel product researchand development key laboratory, 67 varieties and nearly 300 grades of new rare earth steel materials have been formed.
Case: Bao Gang United Steel won another great result in 2024 China Innovation Method Competition
Case: Enabling innovative development, Bao Gang United Steel joins hands with University of Science andTechnology Beijing to build a talent enclave
In November 2024, the final of China Innovation Method Competition came to an end. The Bao Gang UnitedSteel team performed well and nally won 1 second prize, 1 third prize and 3 excellence prizes, demonstrating theoutstanding level of innovation method application and enterprising spirit of scientic and technological workers.
Bao Gang United Steel is comprehensively promoting innovation-driven development and actively connecting withUniversity of Science and Technology Beijing to jointly build a talent enclave. In 2024, based on the establishmentof the Joint Innovation Center of Bao Gang United Steel and University of Science and Technology Beijing, “BeijingBao Gang United Steel Technology Co., Ltd.” will be registered to jointly build an innovation consortium with deepintegration of industry, academia and research. The study and research activity that “ten thousand students visithundreds of enterprises at Beijing science and technology enterprise tour” was held, attracting 25 masters and 3doctoral students to exchange ideas. Launch the Steel Backbone Class, which will jointly train high-quality talentsthrough projects to build momentum for innovative development.
?Strengthen the foundation for innovation
?Scientic research project management
Strategies
Impact, risk, and opportunity management
China Innovation Method Competition Final Sceneemployees hold adoctorate degreeemployees hold amaster's degreeemployees have abachelor's degreeOther academicqualications accountR&D Staff Qualifcation Structure
40.96%
42.92%
2.6%
13.52%
7879
Governance
Promote stability like a rock
Environment
“Steel” flowers bloom with green vitality2024 Sustainability Report
SocietyBuild dreams and benefit the people
The Company is accelerating its adjustment pace by targeting high-end production lines and products, implementinghigh-end production line upgrades, continuously increasing the proportion of mid-to-high-end products, and enhancingindustrial capabilities and product competitiveness. In 2024, the Company completed 11 quality and efciency improvementprojects, including the carbon reduction and pollution reduction upgrade of non-oriented silicon steel annealing furnacesand the new construction of a 150-ton RH refining furnace. This is of great significance for developing the Company'sunique high-end products.Baogang's high wear-resistant and high-strength rare earth steel plate series have won the ChinaSteel Industry Award for Product Development and Market Expansion.
By optimizing production processes and adjusting product structures, Bao Gang United Steel continues to improveproduct quality and reduce production costs, focusing on key challenges to enhance the transformation of scientificand technological achievements, with a transformation rate of 68%. Achieve the rst launch of 12 products, successfullydevelop 165 new varieties, with multiple products lling regional gaps and develop 12 new steel materials for new energyprojects. Throughout the year, 150 innovation achievements were granted with utility model patents, 2 scientic researchachievements were awarded with industry and regional awards, and the “Green and Low-Carbon New Technology andEquipment for Full Dry Method Waste Heat Recovery of Converter Gas” reached international leading levels.
?Achieve the rst launch of L360MH hydrogen transmission pipeline steel in China, with nearly 27,000tons of hydrogen transmission pipeline steel supplied in bulk, becoming the raw material supplier for
the construction of the rst long-distance, large-diameter, high-pressure natural gas hydrogen-blendedpipeline in China.
?Following the national energy structure adjustment and clean energy development, 500MPa rare earthwind power steel was applied in the Baiyun Obo 150MW green power project.
?The independently developed zinc-aluminum-magnesium steel for solar thermal use successfully brokethe long-term dependence on imports for steel used in solar thermal power projects. It has beensuccessively applied in multiple projects in Xinjiang, Qinghai, and other regions.
?Achieve the rst launch of export hot-rolled IH rails with the highest hardness of 325HB in China.
?Independently design the composition system of H400 hypereutectoid steel rails and successfullyproduce H400 hypereutectoid high-strength wear-resistant steel rails in bulk for the rst time, achievinga historic breakthrough in the promotion and application in the high-end heavy-haul railway market.
Key technological achievements in 2024
Bao Gang United Steel revised and issued the Patent Work Management Measures of Bao Gang United Steel in accordancewith the Patent Law of the People's Republic of China, Implementation Rules of the Patent Law of the People's Republic ofChina, and Patent Work Management Measures of Baogang Group, comprehensively stipulating management institutionsand responsibilities, patent system application, application, implementation maintenance, and protection. In externalcooperative development, commissioned research, and cooperative scientic research projects, the cooperation agreementmust clearly define the ownership of patent application rights and patent rights for R&D results. At the same time,employees must comply with the agreement with the Company regarding condential information and intellectual property.By the end of 2024, the Company owned 2,316 valid patents, including 447 invention patents.
?The project titledMechanism and Industrial Application of Rare Earth Microalloying in Non-APIStandard Oil Casing won the second prize of the Rare Earth Science and Technology Award.
?The project titled Research on the Upgrade and Optimization of the Packaging System for SeamlessSteel Pipes won the second prize of the Metallurgical Science and Technology Award.
Science and technology awards in 2024
Bao Gang United Steel was rated as a high-tech enterprise. In 2024, the Companyinvested RMB 3.7 billion in technological innovation, accounting for 5.46% of totaloperating revenue, achieving the set target; 892 patents were applied for, including449 invention patents.By 2025, the Company's technology investment will not be less than 4.35% of totaloperating revenue.
In 2024, the Companyinvestedin technological innovationRMB
3.7
billion
?Provide high-end products
?Achievement application and transformation
?Intellectual property protection
Completion of the Carbon Reduction and Pollution Reduction UpgradeProject for Non-oriented Silicon Steel Annealing Furnaces
Successful development and mass production of rare earth orientedsilicon steel
The rst domestic hydrogen-blended long-distance pipeline steel was successfully delivered.
Indicators and goals
8081
2024 Sustainability ReportESG
Bao Gang United Steel integrates ESG philosophies into company management and operations, organizes and builds anESG governance architecture, solidly advances ESG-related work, develops the Special Plan for Sustainable DevelopmentManagement Improvement of Bao Gang United Steel, and gradually promotes the update and optimization of ESGmanagement systems and ESG indicator systems, laying a solid foundation for continuously improving sustainabledevelopment management levels.
Bao Gang United Steel researches and builds an ESG governance architecture composed of three levels: the Board ofDirectors, the Board of Directors' Strategy and ESG Committee, and the ESG working group. The Board of Directors is thehighest responsible institution for the Company's ESG management operation and information disclosure, the Board ofDirectors' Strategy and ESG Committee is responsible for formulating ESG goals and related systems, and the ESG workinggroup, as the main coordination and execution institution, coordinates and promotes the implementation of ESG-relatedmatters.
ESG architecture
Responsibilities of the
Board of Directors
?Review and approve the Company's ESG goals and strategic plans;
?Review and approve the Company's ESG governance architecture and key policies;
?Review and approve the Company's ESG report;
?Review and approve the public disclosure of the Company's ESG-related performance;
?Review ESG-related risks with significant impact and response plans for major ESGnegative events.
Responsibilities of the
Board of Directors'Strategy and ESGCommittee
?Research and provide recommendations on the Company's ESG goals and plans, ESGgovernance architecture and policies, ESG-related policies, ESG reports, and othermatters;
?Identify and monitor ESG-related risks and opportunities with significant impact on theCompany's business, and guide management to take appropriate measures to addressESG risks and opportunities;
?Organize and coordinate the supervision and inspection of the Company's ESG-relatedpolicies, management, performance, and target progress, and provide correspondingrecommendations;
?Review and submit the Company's ESG-related reports to the Board of Directors;
?Review matters related to the Company's ESG, etc.
Responsibilities ofESG Working Group
?Develop ESG-related policies and action plans aligned with the Company's strategy andESG goals;
?Manage ESG-related risks and matters in the Company's routine operations;
?Communicate with relevant departments and subsidiaries of the Company, and coordinatethe implementation of ESG-related matters;
?Collect, organize, and compile the Company's public disclosure on ESG-relatedperformance;
?Other ESG-related matters.
Bao Gang United Steel has gradually achieved sustainable development through initiatives such as issuing socialresponsibility/sustainability reports and conducting social responsibility/ESG training. Based on the continuous release ofsocial responsibility reports for ve years, the Company compiled and released the 2023 Annual Sustainability Report for therst time in 2024.
Bao Gang United Steel places high importance on stakeholder management, establishing regular communicationchannels with all parties to promptly understand the expectations and demands of the government, regulatory agencies,shareholders, employees, customers, suppliers, the public, and the media. Through various measures, the Company activelyresponds and incorporates the concerns of all parties into its operations and strategic decision-making processes, ensuringstakeholders' rights to information, participation, expression, and supervision.
ESG practices
Stakeholder communication
Case: Preparation of 2024 Annual Sustainability Report of Bao Gang United SteelOn December 24, 2024, Bao Gang United Steel held a special training session on Environmental, Social, andGovernance (ESG) and the kick-off meeting for the preparation of 2024 Annual Sustainability Report. The meetingprovided in-depth explanations from six aspects, including ESG trends and requirements, interpretation of theGuidelines for Sustainability Reports of Listed Companies, and the conceptualization of 2024 Annual Report, offeringinsights for Bao Gang United Steel to enhance its ESG management level.
Bao Gang United Steel holds ESG Special Training and 2024 Sustainability Report Preparation Kick-off Meeting
ESG management
8283
2024 Sustainability ReportESG
StakeholderExpectations and needsCommunication and responseGovernmentbodies andsupervisoryauthorities
?Compliance management
?Tax payment according to laws
?Anti-corruption
?Prevention and control of pollution
?Work safety
?Improvement of company governance
?Strengthening compliance risk management
?Consciously accept supervision
?Actively fulll tax obligations
?Enhancing integrity construction
?Compliance with laws and regulations
?Green production and operations
Shareholdersand investors
?Related transaction
?Information disclosure transparency
?Company governance
?Investor relations management
?Return on investment
?Establish a related party transaction price adjustmentmechanism
?Information disclosure according to law
?Holding Board of Shareholders
?Establish multi-channel communication platforms
?Participate in investor exchange activities
Employee
?Protection of rights and interests ofemployees
?Occupational health and safety
?Vocational training and development
?Remuneration and welfare protection
?Employee caring
?Improve safeguard mechanisms
?Regulating work safety
?Conduct regular employee training
?Employee satisfaction survey
?Provide assistance to employees in need
?Congress of workers and employees
?Organize diverse cultural and sports activities
Customer
?Product quality
?Customer privacy protection
?Customer service
?Product innovation and R&D
?Application of intelligent technology
?Strengthen product quality management systemconstruction
?Standardize information security management
?Customer satisfaction surveySuppliers andpartners
?Fair competition
?Eliminate commercial bribery
?Responsible procurement
?Supplier management
?Win-win cooperation
?Improvement of supplier eligibility mechanism
?Strengthening supplier management
?Participating in industry exchangesPublic
?Public welfare and charity
?Prevention and control of pollution
?Organize and participate in public welfare activities
?Green production and operationsMedia
?Compliance management
?Information disclosure
?Enhance communication with the media
?Consciously accepting media supervision
?Improve the timeliness and quality of information
In 2024, Bao Gang United Steel, in accordance with the latest international disclosure standards such as the EuropeanSustainability Reporting Standards (ESRS) and the International Financial Reporting Standards - Sustainability DisclosureStandard No. 1 - General Requirements for Sustainability-related Financial Information Disclosure (IFRS S1), strictlyadheres to the requirements of the Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 14 -Sustainability Report (Trial). The Company updates its assessment methods, conducts a dual materiality assessment for therst time, integrates nancial perspectives into the previous impact materiality assessment, fully incorporates the views ofmultiple departments and stakeholders, comprehensively analyzes the impact of ESG issues on the Company's nances,economy, environment, and society, and focuses on responding to 12 nancially material issues in this report.
Substantive issue identication
?Dual materiality assessment process
Step 1: Context analysis and issue identication
Step 3: Dual materiality assessment analysiS
Step 4: Analysis results guide ESG disclosure and practice
Step 2:
Identify 28 potential material issues based on six factors, forming an issue pool
Based on the assessment data from Step 2, form the 2024 materiality issue matrix todetermine this year's materiality issues and their priorities.
The Strategy and ESG Management Committee reviews and conrms the analysis results. TheCompany uses the analysis results as a guide to carry out targeted disclosure and practiceimprovements.
2-1 Impact materiality assessment: Impact level: stakeholder questionnaire survey; possibility:
internal and external esg expert assessment2-2 Financial materiality assessment: Internal financial department experts assess thenancial materiality of each issue from two dimensions, with multiple departments reviewingand conrming.
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2024 Sustainability ReportESG
?Material issue database
?ESG materiality issue matrix
1.Environmental
compliance management
2.Waste disposal3.Pollutant emission4.Utilization of water
resources
5.Combat with climate
change
6.Circular economy7.Ecosystem and biodiversity
protection
8.Energy utilization
9.Work safety10.Innovation driving11.Employees12.Product and service safety
and quality
13.Supply chain security14.Provision of high-end
products
15.Digital transformation16.Assisting industry
development
17.Rural revitalization18.Social contribution19.Equal treatment for small
and medium enterprises
20.Data Security and
Customer Privacy Protection
21.Compliance
management and riskprevention
22.Supply chain ESG
management
23.Stakeholder
communication
24.Anti-commercial bribery
and anti-corruption
25.Anti-unfair competition26.Leadership of Party
building
27.Due diligence28.Technology ethics
ESG honors
In 2024, Bao Gang United Steel's Wind ESG rating jumped
from “BB” to “A”
The 2023-2024 information disclosure work received
the highest A-level (excellent) evaluationfrom the Shanghai Stock ExchangeBao Gang United Steel was awarded as the“Excellent Practice Case of the Board of Directors for the ListedCompany” and the “Best Practice of the Board of Directors’ Ofce
for the Listed Company in 2024”by the Association for Public Companies
Bao Gang United Steel's Wind ESG rating upgraded to “A”
Financial Materiality
Impact Signicance
2024 Sustainability ReportFuture prospects
Future prospects
Build dreams together and embark on a new journey. 2025 is the nal year of the 14th Five-Year Plan and the year to lay out the 15th Five-Year Plan. We will continue to focus on ourcorporate vision of “building the world's best rare earth steel new material production baseand becoming an excellent supplier of high-quality rare earth steel new material ”. We willremain confident, emancipate our minds, work hard, take responsibility, innovate boldly,deepen reforms to improve quality and efciency, forge ahead in the wave of creating rst-class enterprises, carve out a new path for the high-quality development of Bao Gang UnitedSteel, and create a new era of high-quality development for the enterprise!
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2024 Sustainability ReportAnnex
Annex
Key performance
IndicatorUnit202220232024
Economic performance
Operationperformance
Operating revenue
RMB tenthousand
7,217,175.397,056,538.866,808,944.06Operating cost
RMB tenthousand
6,659,094.586,370,751.606,272,606.36Operating prots
RMB tenthousand
-101,456.4350,870.369,857.08Total prots
RMB tenthousand
-122,286.6242,026.048,583.63Net prots
RMB tenthousand
-144,494.052,960.422,074.89
Innovationdriving
R&D investment
RMB tenthousand
293,104.98376,551.82371,955.43Proportion of R&D investment inbusiness revenue
%4.065.345.46Number of R&D employeesPerson1,2722,0321,997Proportion of R&D employees%4.527.517.91Total number of valid patentsItem1,7282,0152,316Number of patents appliedItem745774892Number of new patents grantedannually
Item449440324Number of new invention patentsgranted annually
Item6270117Environmental performanceEnvironmentalcompliancemanagement
Environmental investmentRMB 100 million46.656.637.71Number of environmental pollution Item000Environmental nes faced duringthe scal year
RMB tenthousand
Proportion of sites withenvironmental risk assessments
%100100100Proportion of sites certiedwith ISO14001 environmentalmanagement system
%100100100Employee training coverage rate onenvironmental protection
%100100100
Energyconsumption
Total energy consumptionTce coal9,211,580.509,846,615.589,431,287.00Total energy consumption permillion revenue
Tce coal127.63139.54138.51Comprehensive energyconsumption per ton of steels
Ton of standardcoal / ton ofcrude steel
691.27677.95629.11
Steam consumptionTce coal764,058767,121.24867,641.35Total fuel oil consumptionTon41,629.1937,669.7638,225.08Diesel oil consumptionTon41,547.7537,602.9438,156.71Gasoline consumptionTon81.4466.8268.37Coal consumptionTon9,592,785.959,912,620.499,782,357.68Natural gas consumptionm
100,151,295.0083,860,824.0098,269,505.00Total electricity consumption
Hundred millionkWh
92.94100.2686.53
Waste heat energy consumptionTce coal764,058767,121.24867,641.35Waste heat and energy recoveryutilization rate
%89.7985.8685.15Self-generated electricity
Hundred millionkWh
50.652.4465.46Self-owned clean energy generationcapacity (PV power generation)
MW23.9541.4541.45Annual self-owned clean energygeneration (PV power generation)
Ten thousand
kWh
2,022.002,646.002,943.95
9091
2024 Sustainability ReportAnnex
Utilization
of waterresources
Total water consumption
Ten thousandm
309,742.45295,961.88285,034.53Total water consumption per millionrevenue
Ten thousand
m
4.29174.20834.1862
Fresh water consumption
Ten thousandm
6,511.006,535.005,801.73Fresh water consumption per ton ofsteel
Ten thousandm
4.594.33.87Recycled water consumptionTen thousand t303,231.45289,426.88279,232.80Water resource reuse rate%97.997.7997.96Waste water emissionTen thousand t1,183.34642.29314.72
Pollutantemission
Nitrogen oxide (NO
X) emissionTon14,498.9512,018.929,518.76Sulphur dioxide (SO
) emissionTon6,731.835,944.694,003.8Sulphur dioxide emission per ton ofsteel
Kg/ton ofcrude steel
0.470.390.27Particulate emissionTon8,291.027,250.315,390.29Chemical oxygen demand (COD)emission
Ton271.08130.7244.27Ammonia nitrogen (NH3-N)emission
Ton184.093.04Chemical oxygen demand (COD)emission intensity
Kg/ton of steel0.01910.00850.003Dust and particulate emissions perton of steel
Kg/ton ofcrude steel
0.580.480.36Ammonia nitrogen (NH3-N)emission intensity
Kg/ton of steel0.00130.00030.0002
Wastedisposal
Total waste generationTen thousand t1,195.421,063.801,323.69General waste generationTen thousand t1,166.811,051.801,300.90Total non-harmful waste generatedper million revenue
Ton161.67149.05191.06General wastes recycledTen thousand t803.04714.88959.13Total hazardous wastesTen thousand t28.611222.79
Total harmful waste generated permillion revenue
Ton3.9781.703.347Hazardous wastes recycledTen thousand t26.059.1413.11
Cleanproduction
Comprehensive utilization rate ofsteel slag
%100100100Dust and sludge recovery utilizationrate
%100100100Green coverage rate in plant area%48.850.150.1
Social performance
Protectionof rights andinterests ofemployees
Labour contract signing rate%100100100Proportion of employees coveredby collective agreements
%100100100Social insurance coverage rate%100100100Total number of employeesPerson28,54727,27425,432Number of part-time employeesPerson000Number of employees fromminority groups
Person2,3442,2282,139Turnover rate of employees%0.220.370.35Number of employees assistedPerson694756339Number of employees assisted permillion revenue
Person0.009620.010710.00498Average days of paid leave peremployee
Day121212Number of recruited demobilizedsoldiers
Person0045Proportion of employees fromdisabled group
%--1.83Number of discrimination andharassment-related incidents
Nos.000Proportion of employees trained onanti-discrimination and anti-humanrights violations
%162525Number of child labor, forced labor,and human trafcking incidents
Nos.000
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2024 Sustainability ReportAnnex
Careerdevelopmentand training
Employee training coverage rate%100100100Total training duration of employeesHour4,690,7996,035,9795,732,354Per capita duration of employeetraining
Hour146226225Proportion of employees receivingvocational and skills training
%100100100
Occupational
health andwork safety
Occupational health check-upcoverage rate
%100100100Work injury insurance investment
RMB tenthousand
2,2212,122 2,274Number of person-times involved intraining on work safety
Person-time118,519176,720186,060Duration of training on work safetyHour1,201,9401,967,5552,083,872Average safety training duration peremployee
Hour43.3271.678.3Coverage rate of safety riskprotection training
%100100100Product andService Safety
and Quality
Quantity or percentage of productsthat need to be withdrawn orrecalled due to health and safetyreasons
%000Customer satisfaction%97.9196.8797.17
Supply chainsecurity
Number of suppliersNos.1,2221,4621,632Number of suppliers in mainlandChina
Nos.1,2191,4591,632Number of suppliers audited andevaluated annually for corporatesocial responsibility, environmental,and other ESG-related aspects
Nos.1,2221,4621,632Proportion of procurement orderson the bidding and procurementplatform
%100100100
Socialcontribution
Total volunteer service hoursHour13,00090011,730Average volunteer service hours perperson
Hour6.54.52.5
Governance Performance
Companygovernance
Proportion of independent directors%35.7145.4536.36Proportion of female directors%7.149.0918.18Number of meetings of the Boardof Directors
Times151414Member attendance rate for theBoard of Directors
%100100100Number of directors attending lessthan 75% of meetings
Person000Number of meetings of AuditCommittee
Times9710Number of meetings of Nomination,Remuneration and AssessmentCommittee
Times241Proportion of women in seniormanagement
%16.672016.67Proportion of operation points thathave conducted a corruption riskassessment
%100100100Proportion of senior managementholding shares
%0.0008200Stock pledge ratio%14.3418.0213.91
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2024 Sustainability ReportAnnex
Index of indicators
Contents
Global Reporting Initiative(GRI Standards)
Guidelines on Corporate SocialResponsibility Reporting for Chinese
Enterprises (CASS-ESG6.0)About this reportGRI101P1.1-1.2Address by chairmanGRI102P2.1About Bao Gang United SteelGRI102P3.1-3.4New glory - 2024 responsibility events-S2.1.13-2.1.14Responsibility issue I: Strengthening thebrand and forging new materials for majornational equipment
GRI203S2.1.1-2.1.3,S2.1.14
Responsibility issue II: Empoweringintelligence, and activating a new enginefor the industry
GRI203S2.1.3,S2.1.13-2.1.14Responsibility issue III: Rare treasurehouse, broad prospects for diversieddevelopment
GRI304E3.1.4-3.1.5
Environment:
“Steel” owersbloom with greenvitality
Strengthenenvironmentalmanagement
GRI307E2.4.1-2.4.4Combat with climatechange
GRI305
E1.1.1-1.1.6,E1.1.12,E1.1.14-
1.1.16,E1.1.19
Promote greenproduction
GRI302,GRI303,GRI305,GRI306
E3.1.2,E3.1.5,E3.1.8-3.1.9,E3.2.3-3.2.4,E2.1.1,E2.1.4,E2.1.6-2.1.8,E2.2.5-2.2.7Protect ecologicalbalance
GRI304E2.3.1-2.3.5
Society:
Build dreams andbenet the people
Customer orientation,quality rst
GRI416,GRI417,418S3.3.1-3.3.6,S3.4.3-3.4.4Empower employeegrowth
GRI401,GRI402,GRI403,GRI404,
GRI405
S4.1.3,S4.1.5,S4.1.11-4.1.12,S4.2.1-4.2.4,S4.2.6,S4.3.1-4.3.3Deepen industrycooperation
GRI204,GRI308,GRI414S3.1.1-3.1.4Enhance people'swell-being
GRI415S1.1.1-1.1.2,S1.1.5-1.1.6,S1.2.1,S1.2.6
Contents
Global Reporting Initiative
(GRI Standards)
Guidelines on Corporate SocialResponsibility Reporting for ChineseEnterprises (CASS-ESG6.0)
Governance:
Promote stabilitylike a rock
Adhere to theleadership of Partybuilding
-G1.2.1-1.2.3Standardize corporategovernance
GRI102G1.1.1-1.1.2Comprehensivedeepening of reform
GRI102,GRI205,GRI206G1.1.11,G2.1.1-2.1.4,G2.2.1-2.2.3,S1.3.2Innovation-drivendevelopment
GRI203S2.1.1-2.1.3,S2.1.12-2.1.13ESG managementGRI102,GRI103G1.1.1-1.1.7,G1.1.9,G1.1.13,G1.3.1-1.3.2Future prospects-A1Annex
Key performance-A2Index of indicators-A3Feedback-A6
2024 Sustainability Report
Feedback
Dear readerThank you for reading the 2024 Sustainable Development Report of Inner Mongolia Bao Gang United Steel Co., Ltd. Wehope you can provide valuable opinions and suggestions by lling out the feedback form and choose any of the followingmethods to send your feedback to us to strengthen communication and exchange with stakeholders and further enhancethe Company's ability and level of fullling social responsibilities.Securities Financing Department of Inner Mongolia Bao Gang United Steel Co., Ltd.Address: Room 204, Main Building, Bao Gang United Steel InformationBuilding, Hexi Industrial Zone, Kundulun District, Baotou City, Inner MongoliaTel.: 0472 - 2669527 Email: glgfzqb@126.comPost code: 014010 Fax: 0472 - 2669528
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