Beijing Shougang Company Limited2022 Annual Social Responsibility Report
19 April 2023
CONTENTS
Interpretation ...... 1
I. Paraphrase .................................................................................................................................. 1
II. Scope of the report ................................................................................................................... 1
Section I. Overview ................................................................................................................................................... 2
Section II. Protection of shareholders' interests ......................................................................................................... 3
I. Corporate government ............................................................................................................... 3
V. Communication with investors ................................................................................................. 5
Section III. Protection of Employee's Rights and Interests ........................................................................................ 7
I. Protection of employee interests ................................................................................................ 7
II. Safety in production ................................................................................................................. 7
III. Professional training ............................................................................................................... 8
IV. Labor union activities .............................................................................................................. 9
Section IV. Honest Operation, Protection of Suppliers' and Customers' Rights and Interests .................................. 11
I. Operate in good faith according to law .................................................................................... 11
II. Protection of rights and interests of suppliers and clients ...................................................... 12
III. Responsibilities for product quality ...................................................................................... 13
Section V. Environmental Protection and Green Development ................................................................................ 15
I. Environmental protection related policies and industry standards .......................................... 15
II. Administrative license for environmental protection ............................................................. 15
III. Pollutant emission ................................................................................................................. 16
IV. Pollutant disposal .................................................................................................................. 16
V. Environmental self-monitoring programme ........................................................................... 17
VI. Contingency plan .................................................................................................................. 18
VII. Environmental protection input and environmental protection tax ..................................... 19
VIII. Carbon emission reduction measures and effects ............................................................... 19
IX. Administrative supervision and management ....................................................................... 20
X. Other environmental protection related information .............................................................. 20
Section VI. Public Relations and Social Welfare ..................................................................................................... 22
I. Volunteer service...................................................................................................................... 22
II. Endowment drives .................................................................................................................. 22
III. Energy conservation and emission reduction will help protect blue sky .............................. 23
IV. Expanding achievements in poverty alleviation and helping revitalize rural areas ............... 23
Conclusion ...... 24
Interpretation
I. Paraphrase
| Item | Refers to | Contents |
| Company, the Company or Shougang, Shougang Co. | Refers to | Beijing Shougang Company Limited |
| The Articles of Association | Refers to | The Articles of Association of Beijing Shougang Company Limited |
| Rules of procedure for Shareholders’ General Meeting | Refers to | Rules of Procedures for the General Meeting of Beijing Shougang Company Limited |
| Qiangang Co. | Refers to | Shougang Qian'an Iron&Steel Co., Ltd. (Branch of the Company) |
| Cold-R Co. | Refers to | Beijing Shougang Cold Rolling Co., Ltd. (Holding subsidiary of the Company, the Company holds 70.2806%) |
| New-E Co. | Refers to | Beijing Shougang New Energy Automobile Material Technology Co., Ltd. (Holding subsidiary of the Company, the Company holds 45.9184%) |
| Zhixin Co. | Refers to | Shougang Zhixin Qian'an Electromagnetic Materials Co., Ltd. (Holding subsidiary of the Company, the Company holds 75.3989%, New-E Co. holds 8.9042%) |
| Qian'an Metallurgical Co. | Refers to | Qian'an Shougang Metallurgical Technology Co., Ltd. (Wholly-owned subsidiaries of the Company) |
| Steel Trading | Refers to | Beijing Shougang Steel Trading Investment Management Co., Ltd. (Wholly-owned subsidiaries of the Company) |
| Qianshun Base | Refers to | The integrated production organization and product research and development system formed by Qiangang Co, located in Qian-an, Hebei province, and Cold-R Co., located in Shunyi District, Beijing. |
| Jingtang Co. | Refers to | Shougang Jingtang United Iron&Steel Co., Ltd. (Holding subsidiary of the Company, the Company holds 70.1823%, Steel Trading Co. holds 29.8177%) |
| Reporting Period | Refers to | From 1 January 2022 to 31 December 2022 |
II. Scope of the report
The 2022 Annual Social Responsibility Report of Beijing Shougang Co., Ltd. contains theperformance of social responsibility of Beijing Shougang Co., Ltd. and its holding subsidiaries in2022.Note: This report is prepared based on the Chinese text and is prepared in both Chinese and Englishversions. In the event of any discrepancy between the Chinese and English versions, the Chineseversion shall prevail.
Section I. Overview
Beijing Shougang Co., Ltd. was exclusively initiated by Shougang Corporation (renamedShougang Group Co., Ltd. in 2017) and established through public offering. It was listed onShenzhen Stock Exchange in December 1999. The registered capital of the Company isRMB7,819,869,170.Beijing Shougang Co., Ltd. has always adhered to the theme of "scientific development", the mainline of "accelerating the transformation of economic development mode", the goal of "first-classproducts, first-class management, first-class environment and first-class benefits", adhering to thedevelopment policy of paying equal attention to social benefits, environmental protection andeconomic benefits, and constantly making progress in the efficient use of energy, energyconservation and emission reduction. The Company strives to build a digital iron and steelenterprise, and build a world-class green iron and steel enterprise with the common developmentof employees, enterprises, society and environment.
Section II. Protection of shareholders' interests
I. Corporate government
1. Corporate profile
In accordance with the Company Law, Securities Law, Governance Standards for Listed Companies,Listing Rules of Shenzhen Stock Exchange and other relevant laws, regulations, rules andnormative documents, the company continues to deepen standardized operation, strengthenscientific governance, innovate interactive communication channels, maintain good investorrelations, and constantly improve the construction of internal control system and comprehensiverisk management system. The Company strictly performs the obligation of information disclosureand effectively improves the quality of corporate governance operation. The Company has thegeneral meeting of shareholders, the board of directors, the board of supervisors and themanagement layer and other corporate governance structures. In 2022, the Company will continueto improve its management system and organizational structure according to market changes,operation, production and development needs. During the reporting period, the company had 6holding subsidiaries: Shougang Zhixin Qian'an Electromagnetic Materials Co., Ltd., ShougangJingtang United Iron & Steel Co., Ltd., Beijing Shougang Cold Rolling Co., Ltd., Beijing ShougangNew Energy Automobile Material Technology Co., Ltd., Beijing Shougang Steel TradingInvestment Management Co., Ltd., Qian'an Shougang Metallurgical Technology Co., Ltd.
2. Independence of the Company in terms of business, personnel, assets, institutions,finance, etc. relative to the controlling shareholders
The Company and its controlling shareholder maintain complete independence in business,personnel, assets, institutions, finance and other aspects. The Company has a complete procurement,production, marketing and management system, with complete product research and developmentinstitutions and personnel, with independent production and management ability.II. General meeting
The Company shall determine the time and place of the general meeting of shareholders inaccordance with the Articles of Association, the Rules of Procedure of the General Meeting andrelevant provisions, and issues notice for the shareholders' general meeting in accordance with theprovisions. The Company adopts the method of "on-site & online voting" to hold the generalmeeting of shareholders to ensure that the matters submitted to the general meeting of shareholdersfor deliberation and approval are in compliance with the law and ensure that shareholders,especially minority shareholders, exercise their rights.In 2022, the Company held 5 general meetings of shareholders, deliberated and approved 22proposals, including the 2021 Annual Report of the Board of Directors of Beijing Shougang Co.,Ltd., the Proposal of Beijing Shougang Co., Ltd. 's cash acquisition of the pelletizing -sinteringbusiness Assets and Related Party Transactions of Shougang Mining Corporation., and the proposalof Beijing Shougang Co., Ltd.' s amendment of Articles of Association and its attachments.
The convening of the general meetings of Beijing Shougang Co., Ltd. is as follows:
| Sessions | Type | Investor participation ratio | Date | Date of Disclosure | Index of disclosure |
| 2022 First Extraordinary General Meeting | Extraordinary General Shareholders Meeting | 81.73% | 2022/03/18 | 2022/03/19 | "China Securities Journal" ,"Securities Times" ,"Shanghai Securities News", Juchao Information Network (http://www.cninfo.com.cn) |
| 2021 Annual General Meeting | Annual General Shareholders Meeting | 83.64% | 2022/06/29 | 2022/06/30 | Ditto |
| 2022 Second Extraordinary General Meeting | Extraordinary General Shareholders Meeting | 83.35% | 2022/09/09 | 2022/09/10 | Ditto |
| 2022 Third Extraordinary General Meeting | Extraordinary General Shareholders Meeting | 27.96% | 2022/11/15 | 2022/11/16 | Ditto |
| 2022 Fourth Extraordinary General Meeting | Extraordinary General Shareholders Meeting | 83.98% | 2022/12/23 | 2022/12/24 | Ditto |
III. Information disclosure
The Company performs its information disclosure obligations in accordance with relevant laws,regulations and regulatory documents, and the relevant provisions of the Shenzhen StockExchange. The Company establishes a normalized internal audit process for informationdisclosure, continuously improves the efficiency and quality of information disclosure, andensures the truthfulness, accuracy, and completeness of information disclosure, and that there areno false records, misleading statements or major omissions. The Company should discloseinformation to investors in a timely and fair manner through the China Securities Journal,Shanghai Securities News, Securities Times, Security Daily and CNINFO.In 2022, the Company completed 55 information disclosures and submitted 396 documents toShenzhen Stock Exchange, including 217 public disclosure documents (including 100 newspaperannouncements) and 179 documents for filing. The accuracy rate of information disclosurereached 100% throughout the year, and there was no need for correction or supplement.
IV. Profit distribution
Since the establishment of the Company, it has always attached great importance to the return ofshareholders, and maintained the legitimate rights and interests of all shareholders, especiallysmall and medium-sized shareholders. According to various regulations and related requirementsissued by the regulatory authorities, the Company promptly revises and improves the terms of theprofit distribution policy in the Articles of Association, and strictly implements the approvalprocedures. The standard and proportion of the Company's cash dividend are clear and definite.According to the "Profit Distribution Plan of Shougang Co. 2021" reviewed and approved by theCompany's 2021 Annual General Meeting of Shareholders on June 29, 2022, as the Company waspromoting the issuance of shares to purchase assets and raise supporting funds and related partytransactions, according to the relevant provisions of the Measures for the Administration of
Securities Issuance and Underwriting issued by China Securities Regulatory Commission, TheCompany does not carry out dividends this time, nor does it implement capital reserve to increaseshare capital. The Company intends to review and arrange matters related to profit distribution inaccordance with relevant laws, regulations, rules, normative documents and the articles ofassociation as soon as possible after the implementation of the transaction.As of June 7, 2022, the Company has completed the implementation of issuing shares to purchaseassets and raising supporting funds and related party transactions. The total share capital of theCompany increased from 6,750,325,410 shares to 7,819,869,170 shares. In accordance with thecompany's articles of association and other relevant provisions, combined with the actualoperation, the company intends to distribute the profits of 2021 and the first half of 2022 together.In 2021 and the first half of 2022, the net profit attributable to the owner of the parent company inthe consolidated statement of the company is RMB 934,021,480.93 (including RMB802,053,622.97 in 2021 and RMB 131,967,857.96 in the first half of 2022). After withdrawing10% of the statutory surplus reserve of RMB 93,402,148.09, the profit available for distribution toinvestors is RMB 840,619,332.84 (including RMB 721,848,260.67 in 2021 and RMB118,771,072.16 in the first half of 2022).According to the "2022 Interim Profit Distribution Plan" reviewed and approved at the secondextraordinary General Meeting of shareholders of the Company in 2022 on September 9, 2022, theCompany will distribute cash dividend of RMB 0.8 (including tax) for every 10 shares of the totalshare capital of 7,819,869,170 shares to all shareholders, with a total cash distribution of RMB625,589,533.60, which accounts for 74.42% of the distributable profit of the parent company in2021 and the first half of 2022. There is no conversion of capital reserve into share capital thistime.As of September 27, 2022, the implementation of the above profit distribution plan has beencompletedV. Communication with investorsIn 2022, the Company organized and held 2021 and 2022 first quarter performance presentation,2022 semi-annual performance presentation and 2022 third quarter performance presentation toactively respond to investors, introducing the industry development prospects, the Company'soperations and production activities and other information, and actively respond to investors'concerns as well. Among them, the semi-annual and third quarter performance presentation is heldin the form of "online performance presentation" and "performance presentation for specificinvestors". The Company's senior executives conduct text Q&A interaction with small andmedium investors on the Company's business performance through the investor relationsinteractive platform of Panorama, and interact with investors in real time.The Company ensures smooth communication channels between the company and investors,maintains communication with investors through the interactive platform of Shenzhen StockExchange, investor consultation telephone and other ways, and organizes and answers more than600 questions covering electrical steel, finance, capital operation, industry development and otheraspects, with the number of answered questions increasing by more than 6 times year-on-year. In2022, the Company maintains a voluntary information disclosure announcement in the form of
monthly production and operation bulletins to disclose the Company's monthly production andoperation and output of key products, so as to facilitate the majority of investors to timelyunderstand the Company's current production and operation situation and effectively improve thetransparency of the Company.
Section III. Protection of Employee's Rights and Interests
I. Protection of employee interestsThe Company strictly implements the provisions of national and Beijing laws, regulations, rulesand normative documents, and participates in social insurance in accordance with laws andregulations. The Company has established a sound system to protect the rights and interests ofemployees in labor protection, labor remuneration, rest and vacation; For the retired employees,the company has adjusted their basic retirement fees according to the regulations of BeijingHuman Resources and Social Security Bureau on adjusting the basic pension of enterprise retirees,which ensures their stable life. In view of the Company's transformation and efficiencyimprovement work, the company adheres to the people-oriented, including the completion of thediversion and resettlement work of employees, to ensure the ideological stability and workstability of the resettlement personnel, which realizes the harmonious development of employeesand enterprises and maintains social harmony and stability.The Company strictly abides by the provisions of laws, regulations, rules and normativedocuments such as Labor Law and Labor Contract Law, and strictly implements nationalregulations and standards in social security and labor rights protection for employees. First, theCompany goes through labor relations filing procedures in accordance with policies andregulations, and the labor contract signing rate is 100%, without illegal employment; Second, theCompany pays employees' salaries in full and on time and pays social insurance in accordancewith regulations; Third, the Company strictly implements the national working hour system, and ifit needs to be put on record for examination and approval, it will perform the examination andapproval procedures in accordance with regulations; Fourth, the Company strictly implementspolicies for special groups such as work-related injuries, non-work-related injuries, femaleworkers (pregnancy, childbirth, lactation) and etc.The Company strictly implements the Special Provisions on Labor Protection for FemaleEmployees, Provisions on the Scope of Forbidden Labor for Female Employees and otherprovisions, as well as the provisions of the company's labor protection and management measuresfor female employees, and realizes equality between men and women in equal pay for equal work,vocational education, technical training, promotion and promotion, and participation in democraticmanagement of the enterprise. The Company organizes female employees to participate in femalehealth lectures, and organizes female employees to carry out special physical examination, withthe census rate reaching 100%, safeguarding the physical health and legitimate rights and interestsof female employees.The Company focuses on meeting the beautiful needs of employees, effectively serves themajority of employees, and actively carries out the work of sending warmth during festivals,sending cool and refreshing in summer, and sending care for major situations, which havecontinuously improved employees' happiness and sense of gain.II. Safety in production
Qianshun Base and Zhixin Co. adhere to the guidance of safety culture, the construction of safetystandardization as the main line, the construction of "dual control" mechanism as the core, and theessential safety management as the focus, to build a refined safety management system. QianshunBase and Zhixin Co. independently develop the "dual prevention and control system of productionsafety", which takes the lead in realizing the digitalization, informatization and intelligence of"grassroots implementation, management supervision and leadership decision-making", andpromotes the effective implementation of the main responsibility of production safety. QianshunBase and Zhixin Co. carried out three-year special safety rectification action, took the two topicsas the core, strengthened ideological guidance, consolidated responsibility, took multiple measuresto build a long-term mechanism for production safety, completed 17 sub-plans of specialrectification action, formulated 21 process safety standards, innovated 11 safety technologies,formed 7 national patents, and reduced the total value of on-site risk by 10% throughout the year.As a result, the security governance system and governance capacity have been comprehensivelyimproved.Jingtang Co. has further promoted the safety production responsibility system for all staff, paidclose attention to the safety performance evaluation of leaders and key personnel, and deepenedthe work of "two pairs, two ends and one promotion". Jingtang Co. continues to promote theconstruction of dual prevention mechanism, carry out sorting out safety risks and accidents causedby risks, pay attention to the application of essential safety management thinking, enhance theability of risk identification, control and elimination, and significantly improve the ability of majorhazard sources and major risk control. Jingtang Co. promotes the construction of safetymanagement information platform, builds 5 first-level processes, 26 second-level processes, 65third-level processes, which realizes the deep integration of safety information with safety systemand system, and greatly improves the efficiency of safety management. Jingtang Co. continues topromote essential safety management, carry out 82 essential safety research projects,comprehensively promote energy isolation lock listing, essential safety work has made newprogress. Jingtang Co. implements the "nine-step working method" for risk identification andassessment of hot fire operation, promotes fire information management, and realizes closed-loopcontrol of the whole process of 7 main links of hot fire operation. We will continue to strengthenthe safety management of relevant parties, urge and guide the improvement of the safetymanagement system, and constantly build a solid defense line of production safety. In 2022,Jingtang Co. successfully passed the external audit of occupational health and safety managementsystem and the audit of Hebei A-level honest enterprise.
III. Professional trainingIn accordance with the national and Beijing Municipal Vocational Skills Improvement action plan,combined with the overall requirements of the construction of the workforce, Qianshun Base andZhixin Co. take quality improvement, ability training and talent value-added as the core, adhere tothe combination of theory and practice, learning and summary, and establish the "voyage"development system for the whole life cycle career of high-potential talents. According to thetalent positioning needs of different levels, such as training reserve, backbone, core, key andstrategy, Qianshun Base and Zhixin Co. design talent development and training projects at fivelevels, such as "wave, sail, set sail, pilot and pilot", to form a continuous and progressivehigh-potential talent training and development map, which is continuously promoted in stages and
levels. Qianshun Base and Zhixin Co. formulate a series of talent training implementation projectsaccording to the characteristics of talent ability and growth factors at different stages, effectivelyrealize the unified guidance of high-potential talent training of the three talent sequences andaccelerate talent growth. Qianshun Base and Zhixin Co. organized and completed more than 130training programs at all levels throughout the year, realizing full coverage of the three talent teamsof operation and management, professional technology and skill operation, providing strongsupport for building a team of employees with both political integrity and ability and excellentquality, and constantly enhancing enterprise cohesion and high-quality development.Jingtang Co. focuses on improving the quality and ability of the staff and continues to expand andgrow into a talent platform. Jingtang Co. establishes the correct orientation of personnel selectionand employment, pays attention to practical training in undertaking urgent, difficult and heavytasks, holds training classes for middle management personnel and rotation training classes forgrassroots management personnel, implements "seedling" training and "hanging up" learning foryoung backbone, and strengthens the construction of management personnel. Jingtang Co. givesfull play to the advantages of school-enterprise joint training, and holds the second phase ofhigh-end compound technical personnel training class to improve the ability of professional andtechnical personnel. Jingtang Co. continues to carry out skills competition and hierarchicaltraining of team leaders to improve the operation skills of staff. Jingtang Co. explores thedifferentiated training path of graduates, focuses on the "Qinglan" training plan, and strengthensthe training of reserve force.IV. Labor union activitiesThe Company earnestly implements the work requirements of All-China Federation of TradeUnions, Beijing Federation of Trade Unions and Hebei Federation of Trade Unions, and fullyperforms the work of trade unions to safeguard the legitimate rights and interests of employees.The Company is dedicated to serving the basic responsibilities of the workers and the masses,adhere to the service of the overall situation as the center, to harmony as the goal, to the workersas the fundamental, to the grassroots as the focus, closely around the company's operation andproduction objectives and tasks, hold trade union cultural and sports activities, enrich the leisurecultural life of the workers.Qianshun Base and Zhixin Co. around the celebration of the 20th Party Congress held a series ofactivities such as "Welcome the 20th Party Congress, the heart of the workers to the Party" and"Welcome the 20th Party Congress, the history of the Party in the song" theme concert, unite andlead the workers to listen to the party, follow the party, for the development of the company togather strength. Qianshun Base and Zhixin Co. organized the establishment of Shougang staffchoir to participate in the 33rd TV drama "Flying Sky Award" and the 27th TV literature and art"Starlight Award" award ceremony, and sang "Pilot" and other songs to win honors for theenterprise. Qianshun Base and Zhixin Co. organized a series of activities in 2022 Spring FestivalGarden party, including guessing lantern riddles, sharing New Year's taste, manual art exhibition,online sports meeting and other activities, with more than 10,000 people participating. In order toenrich the leisure cultural life of employees and ensuring production and supply, Qianshun Baseand Zhixin Co. held an online series of activities, which attracted more than 400 participants andmore than 100,000 votes. Qianshun Base and Zhixin Co. organized employees to participate in the
Beijing Federation of Trade Unions 2022 "Warm March, care for the Mind" female employeespsychological care service week activities, care and care for female employees, further enhancethe cohesion of the enterprise.Jingtang Co. focuses on the needs of workers' cultural and sports activities, takes the workers'cultural festival as the main line, and relies on the cultural and sports association to carry outvarious forms of mass cultural and sports activities to create a high and enterprising culturalatmosphere. Jingtang Co. held the 2022 Employee Innovation Festival, organized a series ofactivities such as innovation work exchange meeting, employee innovation achievementexhibition, big country craftsman lecture hall and innovation tour to create an innovativeatmosphere for all employees, which was highly praised by China Machine-MetallurgicalBuilding Materials Trade Union and Beijing Federation of Trade Unions. Jingtang Co. held the"12th Staff Cultural Festival", organized a series of activities such as 10km mini marathon,vigorous walking and basketball league, which continuously enriched the connotation of "healthyJingtang, artistic Jingtang and literary Jingtang". During major traditional festivals, Jingtang Co.has carried out a series of online activities such as fitness for all staff, answering questions anddrawing prizes, guessing lantern riddings and welfare, with a total participation of more than150,000 people. Jingtang Co. holds a series of interesting garden tour activities, carry out "summer'home' time" garden tour activities, which create a harmonious and festive atmosphere. JingtangCo. continues to expand the service capacity of "staff mind station", add intelligent physiologicalscreening robots and other professional equipment, and carry out staff psychological services."Staff Mind Station" of Jingtang Co. won the 2022 "Beijing Excellent Staff Psychological ServiceBoost Project". The trade union of Jingtang Co. was awarded as "Advanced Unit of Economic andTechnical Work of Trade Union of National Mechanical and Metallurgical Building MaterialsIndustry".
Section IV. Honest Operation, Protection of Suppliers' and
Customers' Rights and InterestsI. Operate in good faith according to lawThe Company adheres to operating in good faith in accordance with the law. During the reportingperiod, no case of the Company and its directors, supervisors and senior managers beinginvestigated by competent authorities, taken compulsory measures by judicial authorities ordisciplinary inspection departments, transferred to judicial authorities or investigated for criminalresponsibility, nor was any commercial bribery problem found.Firstly, Qianshun Base and Zhixin Co. are committed to the construction of disciplinary educationsystem. Qianshun Base and Zhixin Co. do a good job in publicity and education of party conductand clean government, and carry out systematic anti-corruption education and training. By holdingclean employment warning education and training courses, Qianshun Base and Zhixin Co. haveachieved full coverage of training for personnel in positions with business disposal authority.Qianshun Base and Zhixin Co. carry out publicity themed activities in the Communist Partybranch to achieve full coverage of education in the Party branch. Qianshun Base and Zhixin Co.through the way of explaining specific cases, to achieve full coverage of Communist Partymember education. Second, Qianshun Base and Zhixin Co. strengthen the restriction andsupervision of power operation. Qianshun Base and Zhixin Co. strengthen the dynamicmanagement of the supervision objects, comprehensively check the key supervision objects, findthe integrity risk points in the business process, and make prevention and control measures for therisk points, including the job rotation of the personnel with the power of business disposal inaccordance with the regulations, so as to further build the integrity risk prevention and controlmanagement system. Qianshun Base and Zhixin Co. strengthen the supervision of the "keyminority", "top leader" and leading group, and urge the key personnel to conduct interview andremind conversation and honesty and self-discipline education conversation according to theauthority in charge. Third, Qianshun Base and Zhixin Co. comprehensively cultivated enterprisehonesty culture. Qianshun Base and Zhixin Co. participated in the collection of "Clean airBeijing · Clean Family" family style works, to boost the construction of clean culture with goodfamily style construction. Qianshun Base and Zhixin Co. organized the third clean Culture Monthactivities, held family style theme exhibition, signing the clean proposal, watching the film to sendmessages, publicize the red family style story, family love to help clean, clean culture knowledgecompetition and other special activities, to build a good family style in the new era, so that theconstruction of clean culture into the construction of corporate culture. Establish the integrityconcept of "work and clean integration, diligent and clean government as one".Jingtang Co. earnestly implements the requirements of the anti-fraud system, adheres to theintegrated promotion of dare not be corrupt, cannot be corrupt, do not want to be corrupt,establishes and improves the "five-in-one" clean government risk prevention and control system,and puts an end to commercial bribery. Jingtang Co. strengthens the risk prevention and control ofclean government in key areas, strengthens the supervision of the implementation of measures,actively promotes the construction of "Clean Jingtang" clean culture, continues to deepen the
education of "Clean Jingtang" clean working, and guides cadres and employees to use their rightsclean, cultivate their morality clean and form a family clean. Jingtang Co. strengthens the integrityconstruction with relevant parties, and actively creates a clean environment.II. Protection of rights and interests of suppliers and clients
1. Protection of rights and interests of suppliers
In order to protect the rights and interests of suppliers, the Company does the following measures:
First, the Company revised the Procurement and Supplier Management Measures to establish asupply chain system with integrity, high quality, stability and sustainable competitiveness as thegoal, adhere to the principle of equality, win-win and development, strengthen supplier evaluation,optimize and improve bulk raw fuel evaluation indicators. Second, the Company promotesIATF16949 system certification, and according to functional material requirements and annualsupply quality, the Company formulated "functional material spare parts two party audit work planarrangement", in order to strengthen the source control, which promotes the sound development ofthe supply chain system. Third, the company actively promotes fairness and justice in procurementbusiness and strengthens compliance management. The Company issued the ProcurementManagement Measures for Raw Fuel Materials, which standardized the procurement method,optimized the business process, unified the procurement text, promoted the online quotation of thesupplier system, avoided the tedious offline data transmission of suppliers, and avoided the riskpoints of procurement business. The above measures have improved the procurement efficiency.Fourth, the Company promotes suppliers to actively implement carbon reduction actions. Thecarbon reduction and green procurement business promoted by the Company reduces the carbonemissions of upstream suppliers. The Company has developed a survey questionnaire with 22questions in 9 categories by identifying key suppliers and carrying out field measurement of carbonemissions. Meanwhile, the company has also formulated the LCA work promotion plan for the nextyear, which will be gradually implemented according to relevant requirements. Fifth, the Companystrengthens the construction of party conduct and clean government. The Company adhere to theparty member zero violation of discipline as the central task, to this end, the Company carries out"speak laws and regulations, learn cases, talk about experience" and other activities, but alsothrough the compilation and distribution of "honesty and self-discipline week tips", "read honesty""honesty" and other forms of clean government education manual, these measures will furtherstrengthen the party members and cadres, business disposal power personnel clean practiceideological defense line. The Company continues to implement the spirit of the eight-pointregulations of the CPC Central Committee, and supervises and inspects special items such asofficial vehicles, bidding and official reception for violations. The Company sorted out the riskpoints of integrity, and formulated prevention and control measures, including issuing the "IntegrityNotification Letter" to suppliers, so as to remind and inform suppliers of integrity, and jointlymanage the construction of integrity with suppliers.
2. Protection of rights and interests of clients
Guided by meeting user needs, the Company adheres to the responsibility mission of "servicecreates value" in practicing user service, which further improves differentiated service ability andenhances the Company's service brand image. The Company continues to strengthen service
management through the collection and transmission of client information, closed-loopmanagement of demands, list of problems and collaborative management of listing supervision. Therapid response of front-line service work and the rapid solution of combined production line andR&D resources can quickly solve product quality problems, which improve customer experience.By improving the star rating system of resident representative, the Company has strengthened theconstruction of new energy and Japanese service team. The product quality performance analysismodel established by the Company efficiently supports the timeliness and accuracy of service.Through the production, marketing and research coordination platform of monthly customer serviceregular meetings, the Company promoted 114 client problems to form a closed loop. The platformhandled 581 customer complaints and objections and responded to 178 customer needs throughoutthe year. At the same time, the front-line service capacity of the Company has also been greatlyimproved, with the simple and easy judgment objection processing rate of 93%, accounts for 48% ofthe total number of objections. In 2022, the Company won the "Special Contribution Award" ofBYD as the only steel enterprise, the "Partner Progress Award" of FAW Volkswagen, the "BestPartner Award" of Geely Automobile, the "Excellent Supplier" of CIMC and China RailwayShanqiao, and received letters of thanks from 31 companies including Shaanxi Auto and Titan SteelPipe for their supply. All this shows that the Company's "manufacturing + service" recognitioncontinues to improve.In 2022, as the only steel enterprise, the Company won the BYD "Special Contribution Award",FAW Volkswagen "Partner Progress Award", Geely Automobile "Best Partner Award", CIMC andChina Railway Shanqiao "Excellent Supplier" and 16 other awards. Meanwhile, the Companyreceived thank-you letters from 31 companies such as Shaanxi Automobile and Julong Steel Pipeforsupply assurance, and win-win cooperation. The recognition of the Company's"manufacturing+service" continues to increase.The Company insists on fair cooperation with customers in accordance with the requirements ofclean government construction, which is legal and compliant. The Company has strengthened therequirements of honesty and self-discipline between employees and customers in marketingactivities to protect the relevant rights and interests of customers. The Company has set up "Partyconduct and clean government supervision public boards" in prominent positions in the marketingoffice area, and explored the use of intelligent marketing, 3PL office system and other informationmeans, which opens up the supervision and reporting channels of customers and servicemanagement objects, forming a new all-weather, no-dead corner supervision mode.III. Responsibilities for product qualityQianshun Base and Zhixin Co. with high station standard, high standard requirements, highefficiency to promote the total quality management. Qianshun Base and Zhixin Co. focus on thequality management work of "reducing spot as the main line," double Ten "as the starting point,and consolidating the quality control ability of the whole process" as the core. And Qianshun Baseand Zhixin Co. adhere to the customer-centered, high quality, low cost manufacturing purpose,and continue to reduce quality loss. Qianshun Base and Zhixin Co. continue to focus on the"Double Ten" research, in order to concentrate the superior strength to overcome the internalbottlenecks and external focus problems of the process. At the same time, Qianshun Base andZhixin Co. linked the closing evaluation index with the spot reduction, and a total of 17 projects
completed the plan throughout the year, with a standard rate of 81%. Among them, the solution offocus problems such as "improving the O5 hit rate of the whole process of automobile outerpanel" and "efficient production of the whole process of steelmaking" has improved QianshunBase and Zhixin Co.'s manufacturing capacity, product quality and customer satisfaction.Qianshun Base and Zhixin Co. also improved they process control ability by strengthening thetracking and inspection mechanism of quality inspection, weekly kanban and monthly meetingassignment. In 2022, the Kanban management process will continue to be promoted for 48 periods,focusing on 9 key works and completing 8 plans, with a completion rate of 89%.Jingtang Co. regards product quality as the life of the enterprise, and has been committed to thecontinuous improvement of product quality and customer satisfaction. First, Jingtang Co. hassteadily promoted the construction of quality management system. With the production line of thefirst and second phase of the project construction, the scope of quality management systemcertification has been extended to all products of the company. Jingtang Co. and obtained the firstnew version of IATF16949 certificate in the iron and steel industry in 2017. According to theprocess classification proposed by IATF16949 automobile industry, it is divided into customeroriented process (COP), management process (MP) and support process (SP). Jingtang Co. hasestablished a system for management. Second, Jingtang Co. has steadily improved its processcapacity, promoted the implementation and integration of SPC, MSA, FMEA, APQP and otherquality tools, which has improved product quality consistency and the excellent and good rate ofkey products SPC reached 93.5%. Third, Jingtang Co. focuses on the bottleneck quality problemsand continues to overcome the problems of user concerns, production line quality bottlenecks andproduct shortcomings in the way of three-level "listing supervision". Finally, the completion rateof the above indicators reaches more than 85%. Fourth, through the effective support ofinformation technology, relying on the intelligent scheduling system and refined productionorganization, Jingtang Co. has formed the integrated management mode of production, marketing,research and transportation and improved the contract delivery capacity, resulting in the overallcontract fulfillment reaching more than 97%.
Section V. Environmental Protection and Green DevelopmentIn accordance with the requirements of laws, regulations, rules and normative documents such asAir Pollution Prevention and Control Law of the People's Republic of China, Clean ProductionPromotion Law of the People's Republic of China, Ecological Environmental ProtectionRegulations of Hebei Province, Ultra-Low Emission Standards of Air Pollutants in the Iron andSteel Industry, the company has established a sound professional management organization andenvironmental protection management system, and adheres to the long-term mechanism ofenvironmental protection and green development. Strictly abide by the environmental protectionrelated laws and regulations, improve the professional management system, post operation rulesand environmental protection facilities operation records, environmental protection facilitiesefficient operation. In 2022, Qiangang Co. and Jingtang Co. will continue to maintain the"A-level" enterprises in environmental performance evaluation of Hebei Province.During the reporting period, all pollutants of the Company are discharged up to standard, which isreflected in the 100% completion rate of total pollutants and 100% standard rate of pollutantenvironmental protection. At the same time, the Company's environmental protection equipmentand facilities synchronous operation rate of 100%. The Company has no major environmental orother major social security issues.I. Environmental protection related policies and industry standardsThe policies and industry standards related to environmental protection implemented by theCompany and its subsidiaries mainly include: Environmental Protection Law of the People'sRepublic of China, Cleaner Production Promotion Law of the People's Republic of China, AirPollution Prevention and Control Law of the People's Republic of China, Water PollutionPrevention and Control Law of the People's Republic of China, Environmental PollutionPrevention and Control Law of the People's Republic of China by Solid Waste, Noise PollutionPrevention and Control Law of the People's Republic of China, Soil Pollution Prevention andControl Law, Environmental Impact Assessment Law of the People's Republic of China,Regulations on the Administration of Pollutant Emission Permits, Regulations of Hebei Provinceon Ecological and Environmental Protection, Ultra-Low Emission Standards of Air Pollutants forthe Iron and Steel Industry, Regulations of Tangshan City on Ecological and EnvironmentalProtection, etc.II. Administrative license for environmental protection
During the reporting period, Qiangang Co. successively completed the transformation project ofsteel slag production line pressing ball line drying equipment and the EIA approval work of ninegeneral decline project, which ensured the compliance of environmental protection projects inaccordance with the law. In September 2017, Qiangang Co. obtained a new version of sewagedischarge permit issued by Tangshan Ecological Environment Bureau of Hebei Province. InNovember 2022, Qiangang Co. extended the sewage discharge permit and obtained a new versionof the sewage discharge permit, which is valid until 29 November 2027.
Jingtang Co. adheres to the principle of attaching equal importance to production development andenvironmental protection, so it carries out environmental impact assessment of constructionprojects strictly in accordance with the Environmental Impact Assessment Law of the People'sRepublic of China. In the process of project implementation, Jingtang Co. carries out constructionstrictly in accordance with the EIA approval, and all construction projects are supporting theconstruction of environmental protection facilities, environmental protection approval proceduresare complete, which meets the requirements of "three simultaneous" management ofenvironmental protection. In August 2017, Jingtang Co. obtained a new version of the sewagedischarge permit issued by Tangshan Environmental Protection Bureau, which enabled theconstruction of the second-phase one-step project to proceed smoothly. In April 2019, Jingtang Co.completed the change of sewage discharge permit and obtained relevant certificates, andincorporated the sewage discharge outlet of the second-phase one-step project into standardizedmanagement. In August 2020, Jingtang Co. completed the extension of the sewage dischargepermit, with the validity period extended to August 2025. In February 2023, the permit wasrenewed again, this time extending until February 2028.In strict accordance with the Environmental Impact Assessment Law of the People's Republic ofChina, Regulations on Pollutant Emission Permit Management and other laws and regulations,according to the requirements of pollutant emission permit and EIA management, Zhixin Co.continues to improve the post- emission permit management work, and continues to do a good jobin EIA and acceptance. In August 2022, Zhixin Co. went through the procedures for changing thesewage discharge permit, which is valid until July 2026. In July 2022, Zhixin Co. completed theapproval procedures for the environmental impact report form of the construction project of theenvironmental protection capacity improvement project of the wastewater station.In October 2017, Cold-R Co. obtained the first pollutant emission permit for key enterprises inShunyi District, Beijing. In September 2020, Cold-R Co. submitted an application for the renewalof the sewage permit in accordance with relevant regulations, and in October 2022, the applicationpassed the government review, which extended the validity of the permit to October 2025.III. Pollutant emissionAll pollutants generated by the Company have been discharged in an organized and up to standard.Please refer to the attachment for the discharge in 2022IV. Pollutant disposalEach production process of Qiangang Co. is equipped with perfect environmental protectionfacilities, which will be regularly monitored by qualified testing departments. The test resultsprove that all dust removal facilities achieve ultra-low emission and the emission concentration ofbag dust collector reaches less than 10 mg/m?. The key pollution sources of Qiangang Co. areequipped with 56 sets of online monitoring systems, including 1 set of online monitoring systemfor water pollution, which are all connected with the ecological environment department. Theonline monitoring system is compared and monitored quarterly by a qualified monitoring company,which ensures that the data is true and reliable. Qiangang Co. attaches great importance to savingwater resources and reducing wastewater discharge, so it has invested in the construction of twosewage treatment plants, and the construction of deep water desalting station, which adopts the
international advanced membrane treatment process, can all the wastewater generated in theproduction process after treatment and recycling, so the water recycling rate of Qiangang Co.reaches 98.4%.Jingtang Co. has desulfurization denitrification and other waste gas treatment facilities, which canbe highly efficient treatment of all kinds of waste gas, but also built complete dust removalfacilities, the measures using bag dust removal, plastic burning plate dust removal, electric dustremoval and other ways to remove particulate matter; Coke oven flue gas is removed by movingbed calcium desulfurization +SCR denitration process. The sintering and pellet were removed bycirculating fluidized bed desulfurization and SCR denitration process. Desulfurization of self-builtpower plant adopts seawater desulfurization +SCR denitration process to remove, and densecoherent tower desulfurization +SCR denitration process to blast furnace hot blast furnace.Jingtang Co. has complete wastewater treatment facilities, including coking phenol cyanidesewage treatment system, continuous casting wastewater treatment system, hot rolling, coldrolling, medium thickness plate, steel rolling wastewater treatment system and comprehensivesewage treatment station, etc. At the same time, the production wastewater generated bysteelmaking and other processes is treated into the comprehensive sewage treatment station fortreatment, so as to achieve coupling zero discharge of wastewater. Jingtang Co. has complete solidwaste treatment facilities, including the construction of rotary hearth furnace - zinc resourcerecycling project, slag fine grinding cement production line, etc., to achieve comprehensiveutilization of solid waste. During the reporting period, all the above environmental protectionfacilities ran well, and all processes in the whole process reached ultra-low emission standards.Zhixin Co. continues to promote pollutant emission reduction. According to the "Green project"transformation plan, Zhixin Co. has completed the denitrification transformation of sourcetreatment project CA1/2/4, which effectively reduces nitrogen oxide emissions. Zhixin Co.reached the ultra-low emission standard of Hebei Province, thanks to the continuousenvironmental protection capacity improvement project. According to the requirements, Zhixin Co.has completed the networking of 5 video monitoring systems and 3 CEMS, which provides datasupport for improving the level of environmental protection management.During the reporting period, the pollution prevention and control facilities of Cold-R Co.maintained efficient operation, and all combustion exhaust gas was generated by using clean fuelnatural gas through low nitrogen burners, which minimized the concentration of pollutants. Thedust generated in the production of Cold-R Co. is disposed of by coated bag dust collector, and thefiltration effect reaches 99.99%. The wastewater generated by the cold rolling company is treatedby physical, chemical, biochemical and membrane processes and discharged after treatment. Theemission concentration of all pollutants of Cold-R Co. maintains the leading level in China, andthe emissions are far lower than the permitted emissions.V. Environmental self-monitoring programmeAccording to the Measures for Self-Monitoring and Information Disclosure of State KeyMonitoring Enterprises (Trial), Measures for Supervisory Monitoring and Information Disclosureof Pollution Sources of State Key Monitoring Enterprises (Trial) and other relevant provisions,Qiangang Co. has established and improved the pollution source monitoring and informationdisclosure system and formulated the Pollutant Emission Monitoring Plan for 2022, and strictly
implemented it. In 2022, all environmental monitoring projects were entrusted to qualifiedthird-party institutions for monitoring, and Qiangang Co. actively organized and coordinatedself-monitoring work and completed monthly monitoring tasks, which strengthened themanagement of online monitoring operation and maintenance units and achieved 100% annualmonitoring completion rate in 2022. Qiangang Co. fully completed the annual national pollutionsource monitoring information disclosure work, up to 100%.The environmental monitoring system of Jingtang Co. consists of automatic monitoring andmanual monitoring. The manual monitoring system is entrusted to a third-party testing institution.The automatic monitoring regularly conducts environmental monitoring on pollution sources,waste gas, waste water, noise, radioactive sources and other items in the plant according to theSelf-Monitoring Plan of Key Monitoring Enterprises in 2022, and forms monitoring data andreports at the same time. The monitoring plan for 2022 has been completed, and all environmentalcontrol indicators have reached the standard.Zhixin Co. adheres to green development, strictly observes the bottom line of environmentalprotection, and fully implements the main responsibility of enterprise environmental protection. In2022, Zhixin Co. will achieve zero pollution of environmental protection, 100% synchronousoperation of environmental protection facilities, and 100% smooth passing of environmentalprotection inspection. According to relevant laws and regulations, Zhixin Co. formulatesself-monitoring plans and strictly implements them. While entrusting qualified third-partyinstitutions to conduct monitoring, Zhixin Co. also actively organizes self-monitoring work. In2022, Zhixin Co. carried out self-monitoring 75 times, reaching the standard rate of 100%.Cold-R Co. shall formulate its own monitoring plan in accordance with the requirements of lawsand regulations and sewage discharge permit, entrust a qualified third-party organization tomonitor pollutants on a weekly, monthly and quarterly basis, and upload the data to thegovernment-designated information disclosure system. The emission targets of pollution sourceswill all meet the standards in 2022.VI. Contingency plan
No ecological and environmental emergencies occurred in the Company and its holdingsubsidiaries in 2022.In accordance with the Environmental Protection Law of the People's Republic of China and otherlaws, regulations, rules and normative documents, Qiangang Co. has formulated the EmergencyPlan for Environmental Emergencies. On this basis, Qiangang Co. also formulated three specialplans respectively: Atmospheric Special Emergency Plan for Environmental Emergencies, WaterSpecial Emergency Plan for Environmental Emergencies and Hazardous Waste SpecialEmergency Plan for Environmental Emergencies, which further improved the emergency disposalcapacity of air pollution, water pollution and hazardous waste emergencies.Jingtang Co. identified gas storage cabinets, pipelines, benzene storage tanks, acid storage tanks,liquid ammonia storage tanks and other dangerous chemicals and toxic and harmful substancesproduction and storage areas as emergency rescue dangerous targets. According to therequirements of Shougang Jingtang United Iron&Steel Co., Ltd. 's Emergency Treatment Plan forEnvironmental Emergencies (Fourth Edition), in 2022, Jingtang Co. carried out 25 emergency
drills such as oil leakage emergency drill, oily sludge leakage emergency drill and radiationaccident emergency drill, which ensures that Jingtang Co. can effectively carry out rescue inaccordance with the requirements of the Plan. At the same time, the emergency drills also improvethe skills and actual combat ability of preventing and dealing with sudden environmental pollutionaccidents.In accordance with the requirements of laws and regulations, Zhixin Co. has prepared and put onrecord the Emergency Plan for Environmental Emergencies, which mainly consists of atmosphericspecial plan, water special plan, hazardous waste disposal, risk assessment, emergency resourceinvestigation, on-site disposal plan and other plans. In 2022, Zhixin Co. mainly conducted drillsfor acid leakage, gas leakage and other risk points. Through the drill, Zhixin Co. found problemsand rectifies them in time, which enhanced the company's ability to deal with environmentalemergencies.In accordance with the requirements of laws and regulations, Cold-R Co. has prepared and put onrecord the Emergency Plan for Environmental Emergencies. According to the plan, Cold-R Co.organizes drills in each workshop every year according to the requirements of the plan, throughwhich problems are found and rectifies in time, which enhances Cold-R Co.'s ability to deal withenvironmental emergencies.VII. Environmental protection input and environmental protection taxDuring the reporting period, Qiangang Co. continued to implement 29 continuous improvementprojects such as flue gas treatment of blast furnace hot blast furnace, increase of denitrationfacilities for heating furnace of hot rolling section, denitration improvement of three-firedparticulate matter emission and desulfurization ash transformation, new electric dust removal andfan for the primary line of desulfurization in recycling industrial park, with an annual investmentof RMB 785 million. In 2022, Qiangang Co. paid RMB 10.2702 million of environmentalprotection tax, with a reduction of RMB5.8853 million.Jingtang Co. promoted the implementation of 13 key environmental protection and deep treatmentprojects, including hot rolling furnace desulfurization, blast furnace hot blast furnace flue gasdenitrification, and sleeve kiln flue gas denitrification, with the annual investment of RMB 436million. In 2022, RMB 23.21 million of environmental protection tax was paid, with a reductionof RMB 9.4064 million.Zhixin Co. effectively reduced pollutant emissions by increasing environmental protectiontreatment facilities, with an annual investment of RMB 9.8 million. In 2022, RMB 759,100 waspaid for environmental protection tax, with a reduction of RMB 143,800.Cold-R Co. actively promoted environmental management and protection work, with an annualinvestment of RMB 52.636 million. In 2022, RMB 698,300 was paid for environmental protectiontax, with a reduction of RMB 207,400.VIII. Carbon emission reduction measures and effectsIn order to accelerate the implementation of national industrial policies in the company, theCompany scientifically and standardized to promote the development of "carbon management"activities, the company organized the preparation of Shougang Low-carbon Action Plan and
Shougang Low-carbon Development Organization Implementation Plan, including theformulation of phased goals, clear realization path and determined the schedule and roadmap. Thisundoubtedly accelerated the company to build a green and low-carbon development pattern. Thecompany actively carries out carbon reduction tests, builds LCA basic models for carbon reductiontechnology, and carries out carbon reduction effect accounting. The Company has completed theenvironmental product statement (EPD) report and release of hot rolled steel plate and steel stripproducts in two bases, which strongly supports the green manufacturing of products. TheCompany started the third-party low-carbon certification work in response to the policies relatedto the carbon border adjustment mechanism.Jingtang Co. focuses on the implementation of the "dual carbon" strategy and actively promotesthe clean development of energy structure. Jingtang Co. continues to strengthen the basic capacityconstruction of carbon management, vigorously promote the green upgrading of low-carbonprocess, steadily layout revolutionary deep decarbonization technology research, simultaneouslypromote process carbon reduction and source carbon reduction, and enter the green electricitymarket transaction and purchase green electricity for the first time. To meet customers' carbonreduction needs, Jingtang Co. has steadily promoted the construction of LCA system, releasedEPD of weathering steel, completed the application of green products of key brands such ashigh-strength steel, and created a brand image of green manufacturing.Zhixin Co. focuses on the implementation of the "dual carbon" strategy and actively promotes theclean development of energy structure. Zhixin Co. continues to strengthen the basic capacityconstruction of carbon management, promote the transformation of burner and SCR, vigorouslypromote the green upgrading of low-carbon process, and steadily layout revolutionary deepdecarbonization technology. Zhixin Co. simultaneously promotes process carbon reduction andsource carbon reduction, and actively promotes green electricity use and photovoltaic construction.In 2022, photovoltaic power generation was 2,594,800kwh. To meet customers' carbon reductionneeds, Zhixin Co. has steadily promoted the construction of LCA system, completed the greendesign product application work for two series of products, oriented electrical steel andnon-oriented electrical steel for new energy vehicles, and obtained national recognition, andcreated a green manufacturing brand image.Cold-R Co. adheres to the concept of green development and integrates carbon reduction into thewhole process of development and into all links of production and operation. By adjusting theproduct structure in 2022, Cold-R Co. increased the proportion of high value-added products andfurther reduced energy consumption, meanwhile, the carbon emissions decreased by 4.3%year-on-year through such as market procurement of green electricity and photovoltaic powergeneration and other measures.IX. Administrative supervision and management
During the reporting period, neither the Company nor its holding subsidiaries were punished byregulatory authorities in respect of environmental protection. At the same time, the Companyurges the shareholding companies to abide by the Environmental Protection Law of the People'sRepublic of China and other laws, regulations, rules and normative documents.
X. Other environmental protection related information
On the basis of adhering to the work of environmental protection, Qiangang Co., Jingtang Co.,Zhixin Co. and Cold-R Co. monitor and manage the national pollution source information andsharing platform and the website of the government environmental protection department, as wellas establish the information publication platform by themselves. This propagates and displaysenvironmental protection information such as enterprise environmental protection projects,operation of environmental protection facilities, name and emissions of main pollution sources,monitoring methods, name of monitoring indicators, comprehensive utilization of solid waste andso on. This is one of the ways that the company takes the initiative to accept social supervision.In order to develop circular economy and low-carbon economy, build resource-saving,environment-friendly and low-carbon oriented enterprises, and achieve sound and rapiddevelopment of the company, the Company started the preparation of environmental responsibilityreport at the end of 2016, covering the preparation scope of Qiangang Co., Jingtang Co., ZhixinCo. and Cold-R Co. and other subsidiaries. In April 2022, the Company's website(http://www.sggf.com.cn) released the 2021 Annual Environmental Responsibility Report ofBeijing Shougang Co., Ltd.
Section VI. Public Relations and Social Welfare
Based on enterprise development, the Company actively returns to the society, carries forward thevolunteer spirit of "dedication, friendship, mutual assistance and progress", earnestly fulfills theresponsibility of social assistance, and actively participates in social public welfare undertakings.I. Volunteer service
Qianshun Base and Zhixin Co. have set up Shougang Youth Volunteer service team around majorevents such as the Beijing Winter Olympics to ensure the smooth development of all work. Eightyoung volunteers and three members of the Youth Commandos for service and support of theWinter Olympic Games won "special awards" for service and support of the Winter OlympicGames. A volunteer group has been set up to guarantee the needs of female workers in factories,and a "daily Necessities guarantee group for female workers in factories" has been set up to payattention to the needs of female workers in factories and help them solve practical difficulties oneon one.Jingtang Co. set up a youth volunteer service team to contribute to the service guarantee oflarge-scale activities, and show their youthful style in a number of "urgent, difficult, dangerousand heavy" tasks. In the Winter Olympic Games, Winter Paralympic Games, Beijing ServiceTrade Fair and other large-scale activities, the young volunteers of Beijing and Tang activelyparticipated in, were willing to contribute, and completed their work tasks with careful andthoughtful service.II. Endowment drives
On the basis of the condolence of all staff during the Spring Festival, Qianshun Base and ZhixinCo. visited and visited 420 key personnel such as employees in need, injured and sick workers,backbone model workers and veterans, and issued hardship subsidies of RMB308,000. QianshunBase and Zhixin Co. paid condolences to the front-line production workers and public securitypolice who stuck to their posts during the Spring Festival, and paid condolences to the 245employees and 1,610 support employees in Beijing and Qinhuangdao who could not go homeduring the Spring Festival and Dragon Boat Festival holidays, held summer hosting classes, andorganized medical and rest work for 177 employees, which solved their worries. Qianshun Baseand Zhixin Co. organized summer condolence activities, and sent 6,300 pieces of condolencegoods to all employees. Qianshun Base and Zhixin Co. organized the "Offering Love" fundraisingactivity in 2022, raising RMB412,500, and settled 450 mutual insurance claims of RMB1.18743million for in-service employees. In the special love and relief activities in Beijing, Qianshun Baseand Zhixin Co. helped 186 people and donated RMB258,000, and helped 6 workers with gradientdifficulties and donated RMB30,000. Qianshun Base and Zhixin Co. launched the employeehealth care plan, which selected 26 pilot teams to promote employee health management, andstudied and formulated the three-year Construction Plan for improving the quality of life ofEmployees of Beijing Shougang Co., Ltd.Jingtang Co. actively carried out the heart-warming service project, organized "two festivals" tosend warmth, visited 1,100 key representatives of model workers and employees in need, and paid
RMB780,000 of condolence money. Jingtang Co. carried out the "golden autumn education"activity, which provides financial aid to the children of poor workers. Jingtang Co. organized 33employees' children to participate in summer care classes, which solved the worries of employees.Jingtang Co. organized the "Offering Love" fundraising activity, the donation of RMB455,000.Jingtang Co. applied for Shougang Poverty Relief Fund for 42 employees with a total amount ofRMB882,000, handled special security assistance of RMB1.48 million for 7 employees, handledassistance and assistance for 60 employees with a total amount of RMB270,000, and handled 751mutual insurances for employees with a total amount of RMB1.85 million.III. Energy conservation and emission reduction will help protect blue skyIn response to the national energy conservation and emission reduction policy, Qiangang Co. usesthe waste heat of blast furnace slag water to provide heating for nearly 1.6 million square metersof the factory and local schools, hospitals and communities, replacing the original coal-fired boilerfor heating, reducing the emission of pollutants such as sulfur dioxide and carbon dioxide, andhelping to protect the blue sky.
IV. Expanding achievements in poverty alleviation and helping revitalize ruralareas
1. According to the Opinions of the Central Committee of the Communist Party of China onContinuously Appointing the First Secretary and Task Force to Key Villages, the deployment ofthe Organization Department of the Party Committee of Beijing Municipal Committee and thedeployment of the State-owned Assets Supervision and Administration Commission of Beijing,and the arrangement of the Organization Department of the Party Committee of Shougang GroupCo., Ltd., the Company and Jingtang Co. each appoint a staff member to serve as the firstsecretary of the collective economically weak villages of Beijing. Under the leadership of the localParty committee and government, they conscientiously performed their duties and contributed tothe implementation of the rural revitalization strategy.
2. The Company actively fulfills its social responsibilities, expands the achievements of povertyalleviation, implements poverty alleviation through consumption, and helps rural revitalization. In2022, the Company purchased RMB3.387 million of agricultural materials for poverty alleviationin paired assistance areas.
ConclusionIn 2023, Shougang Co., Ltd. will implement the concept of "people-oriented, honest management,efficient development, mutual benefit and win-win, and contribution to society", always adhere tothe same with the times, customers, shareholders and employees, and strive to build a newgeneration of metallurgical demonstration enterprise of "circular economy, energy saving andenvironmental protection, clean and efficient". The Company strives to maximize the interests ofall parties in its business activities, so as to learn from and contribute to the society, actively fulfillits social responsibilities, and help build a harmonious society.
Beijing Shougang Company Limited
19 April 2023
Shougang Co., Ltd. 2022 Annual Pollutant Emission
| Name of Company or Subsidiary | Types of major pollutants and characteristic contaminants | Names of major pollutants and characteristic contaminants | Way of Discharge | No. of drains | Distribution of emission drains | Emission concentration | Implemented pollutant emission standards | Total emissions (tons) | Total approved emissions (tons) | Emissions exceed the standard |
| Qiangang Co. | Water pollutant | COD (Chemical Oxygen Demand) | Direct | 1 | Wastewater discharge port | 3.64mg/L | 50mg/L | 1.5596 | 648.399 | No |
| Qiangang Co. | Water pollutant | Ammonia Nitrogen | Direct | 1 | Wastewater discharge port | 0.197mg/L | 5mg/L | 0.086025 | 64.899 | No |
| Qiangang Co. | Air pollutants | Sulfur Dioxide | Organized | 32 | Power station boiler chimney, sintering machine head flue gas outlet, pellet roasting flue gas outlet, CCPP combustion exhaust gas, blast furnace hot blast furnace outlet, steel rolling heating furnace outlet, white ash kiln roof, sleeve kiln roof | Sintering, pelletizing < 9.54mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 24mg/m?, power generation < 22mg/m? | Sintering, pelletizing < 35mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 50mg/m?, power generation < 35mg/m? | 883.6218 | 1698.055 | No |
| Qiangang Co. | Air pollutants | Nitrogen Oxides | Organized | 32 | Power station boiler chimney, sintering machine head flue gas outlet, pellet roasting flue gas outlet, CCPP combustion exhaust gas, blast furnace hot blast furnace outlet, steel rolling heating furnace outlet, white ash kiln roof, sleeve kiln roof | Sintering, pelletizing < 38mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 34mg/m?, power generation < 33mg/m? | Sintering, pelletizing < 50mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 150mg/m?, power generation < 100mg/m? | 1545.339 | 3493.843 | No |
| Qiangang Co. | Air pollutants | Particulate Matter | Organized | 129 | Power station boiler chimney, sintering machine head flue gas outlet, pellet roasting flue gas outlet, blast furnace iron field dust removal, blast furnace silo dust removal, steelmaking converter secondary dust removal, converter primary dust removal, CCPP combustion exhaust gas, hot rolling heating furnace exhaust gas, environmental dust removal, material transfer exhaust gas | Sintering, pelleting < 3.5mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln, other environment < 7.5mg/m?, power generation < 4mg/m? | Sintering, pelletizing < 10mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 10mg/m?, power generation < 5mg/m? | 2036.834 | 2524.85 | No |
| Jingtang Co. | Air pollutants | Sulfur Dioxide | Organized | 42 | Boiler chimney of power station of thermoelectric branch plant, flue gas outlet of sintering machine head, flue gas outlet of pellet roasting, primary flue gas dust removal 1#, primary flue gas dust removal 2#, secondary flue gas dust removal 2#, secondary flue gas dust removal on silo of 1# and 2# blast furnace, secondary dust removal from 1# decarbonization converter, secondary dust removal from 2# decarbonization converter, coke oven chimney 3 emissions Port, coke pushing machine ground station discharge port, coke dust removal 3 discharge port, dry extinguishing dust removal 3 discharge port, dry extinguishing dust removal 4 discharge port, 7# converter secondary dust removal, CCPP combustion exhaust gas, 6# converter secondary dust removal, etc | Sintering, pelletizing < 15mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 25mg/m?, coke oven flue gas < 15mg/m?, coal-fired power generation < 10mg/m? | Sintering, pelletizing < 35mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 50mg/m?, coke oven flue gas < 30mg/m?, coal-fired power generation < 35mg/m? | 2022.4 | 2965.74 | No |
| Name of Company or Subsidiary | Types of major pollutants and characteristic contaminants | Names of major pollutants and characteristic contaminants | Way of Discharge | No. of drains | Distribution of emission drains | Emission concentration | Implemented pollutant emission standards | Total emissions (tons) | Total approved emissions (tons) | Emissions exceed the standard |
| Jingtang Co. | Air pollutants | Nitrogen Oxides | Organized | 38 | Boiler chimney of power station of thermoelectric branch plant, flue gas outlet of sintering machine head, flue gas outlet of pellet roasting, primary flue gas dust removal 1#, primary flue gas dust removal 2#, secondary flue gas dust removal 2#, secondary flue gas dust removal on silo of 1# and 2# blast furnace, secondary dust removal from 1# decarbonization converter, secondary dust removal from 2# decarbonization converter, coke oven chimney 3 emissions Port, coke pushing machine ground station discharge port, coke dust removal 3 discharge port, dry extinguishing dust removal 3 discharge port, dry extinguishing dust removal 4 discharge port, 7# converter secondary dust removal, CCPP combustion exhaust gas, 6# converter secondary dust removal, etc | Sintering < 25mg/m?, pelletizing < 30mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 50mg/m?, coke oven flue gas < 45mg/m?, coal-fired power generation < 30mg/m? | Sintering, pelletizing < 50mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 150mg/m?, coke oven flue gas < 130mg/m?, coal-fired power generation < 50mg/m? | 5231.9 | 6379.92 | No |
| Jingtang Co. | Air pollutants | Particulate Matter | Organized | 176 | Boiler chimney of power station of thermoelectric branch plant, flue gas outlet of sintering machine head, flue gas outlet of pellet roasting, primary flue gas dust removal 1#, primary flue gas dust removal 2#, secondary flue gas dust removal 2#, secondary flue gas dust removal on silo of 1# and 2# blast furnace, secondary dust removal from 1# decarbonization converter, secondary dust removal from 2# decarbonization converter, coke oven chimney 3 emissions Port, coke pushing machine ground station discharge port, coke dust removal 3 discharge port, dry extinguishing dust removal 3 discharge port, dry extinguishing dust removal 4 discharge port, 7# converter secondary dust removal, CCPP combustion exhaust gas, 6# converter secondary dust removal, etc | Sintering, pelletizing < 5mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 8mg/m?, coke oven flue gas < 8mg/m?, coal-fired power generation < 5mg/m? | Sintering, pelletizing < 10mg/m?, blast furnace hot blast furnace, rolling steel heating furnace, lime kiln < 10mg/m?, coke oven flue gas < 10mg/m?, coal-fired power generation < 10mg/m? | 2745.5 | 4330.44 | No |
| Zhixin Co. | Air pollutants | Sulfur Dioxide | Organized | 50 | Continuous annealing furnace, regular annealing furnace, decarbonization annealing furnace, ring furnace, hot drawing furnace | <30mg/m3 | 30mg/m3 | 5.048 | 45 | No |
| Zhixin Co. | Air pollutants | Nitrogen Oxides | Organized | 50 | Continuous annealing furnace, regular annealing furnace, decarbonization annealing furnace, ring furnace, hot drawing furnace | <100mg/m3 | 100mg/m3 | 33.978 | 131.649 | No |
| Zhixin Co. | Air pollutants | Particulate Matter | Organized | 69 | Acid regeneration, continuous annealing furnace, constant annealing furnace, decarbonization annealing furnace, ring furnace, hot drawing furnace, scoring | Acid regeneration < 30 mg/m3, heat treatment furnace, score < 10 mg/m3 | Heat treatment furnace, pull straightening machine, finishing and shot blasting: 10 mg/m3, acid regeneration: 30 mg/m3 | 16.31 | 19 | No |
| Cold-R Co. | Water pollutant | COD | Organized | 1 | Wastewater stations | 8.36-15.93 mg/m3 | 30mg/m3 | 21.345 | 67.5 | No |
| Cold-R Co. | Water pollutant | Ammonia Nitrogen | Organized | 1 | Wastewater stations | 0.01-0.71 mg/m3 | 1.5(2.5) mg/m3 | 0.1681 | 3.937 | No |
| Cold-R Co. | Air pollutants | Sulfur Dioxide | Organized | 8 | Around the plant | 3 mg/m3 | Furnace and dust removal chamber: 20 mg/m3； boiler room: 10 mg/m3 | 3.8524 | 18 | No |
| Cold-R Co. | Air pollutants | Nitrogen Oxides | Organized | 8 | Around the plant | Furnace and dust removal chamber: 1-97 mg/m3； boiler room: 1-79 mg/m3 | Furnace and dust removal chamber: 100 mg/m3； boiler room: 80 mg/m3 | 49.326 | 99.58 | No |
| Cold-R Co. | Air pollutants | Particulate Matter | Organized | 10 | Around the plant | Furnace and dust removal chamber: 1-9 mg/m3； boiler room: 1-4.43 mg/m3 | Furnace and dust removal chamber:10 mg/m3； boiler room: 5 mg/m3 | 18.5014 | 18.75 | No |