2024 Sustainability Report

About this report

This report is the second sustainability report released by Inner Mongolia Bao Gang United Steel Co. Ltd. following

five consecutive years of publishing social responsibility reports. The report elaborates on the Company's efforts in

environmental protection social responsibility and corporate governance in 2024 responding to the expectations and

concerns of stakeholders.Reporting period

The 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. For

ease 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 official documents and statistical

reports reviewed by relevant departments. The Company pledges that the report contains no false records or

misleading statements and bears liabilities for the authenticity accuracy and integrity of the report.Basis of preparation

Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 6.0) of China Enterprise

Reform and Development Society Responsibility Cloud Research Institute

Self-regulatory Guidelines for the Companies Listed on the Shanghai Stock Exchange No. 4 - Formulation of

Sustainable Development Report of Shanghai Stock Exchange

Global Reporting Initiative (GRI Standards) of Global Sustainability Standards Board

United Nations 2030 Sustainable Development Goals (SDGs)

Guidelines for State-owned Enterprises to Better Fulfill Social Responsibilities of SASAC of the State Council

Report accessibility

You can read the electronic version of this report by visiting the Investor Relations—Social Responsibility Report

section on the website of Inner Mongolia Bao Gang United Steel Co. Ltd. at https://www.baoganggf.com or by

downloading it from the website of Shanghai Stock Exchange at https://www.sse.com.cn/.

01About this report 01 Responsibility issue I: 12 ESG management 80

Address by chairman 04 Strengthening the brand and Future prospects 86

forging new materials for major

About Bao Gang United Steel 06 national equipment Annex 88

New glory - 2024 responsibility events 10 Responsibility issue II: 14

Empowering intelligence and

activating a new engine for the

Environment steel industry01 “Steel” flowers bloom with green vitality Responsibility issue III: 16Strengthen environmental management 20 Rare treasure house broad

prospects for diversified

Combat with climate change 22

development

Promotion of green production 28

Protect ecological balance 36

02 SocietyBuild dreams and benefit the peopleCustomer orientation quality first 40

Employee development 43

Deepen industry cooperation 53

Enhance people's well-being 57

03 GovernancePromote stability like a rockAdhering to the leadership of Party building 62

Standardize corporate governance 66

Improvement of compliance system 68

Innovation-driven development 75

2024 Sustainability Report

of Inner Mongolia Bao Gang United Steel Co. Ltd.Contents2024 Sustainability Report Address by chairman

Address by chairmanCarbon Best Practice Energy Efficiency 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 steel

products.

2024 marks the 75th anniversary of the founding of This year we have adhered to a people-oriented approach and strengthened our sense of responsibility and mission. We

the People's Republic of China a crucial year for have accelerated the pace of adjustment towards high-end production lines and products to meet market demand for high-

achieving the goals of the 14th Five-Year Plan the performance steel and continuously enhancing brand influence; committed to building a harmonious and win-win employee

70th anniversary of the establishment of Baogang relationship ecosystem expanded “1 center + 4 stations” medical services and continuously improved the employee

Group and a year in which Bao Gang United Steel care service system; on the basis of mutual respect and win-win cooperation we have elevated strategic partnerships tostrives to break through under the severe test of a new level with “jointly creating a new model for central-local cooperation and enhancing the resilience and industriala complex and ever-changing economic situation competitiveness of the coal coking chemical industry chain” being selected as an excellent case of central-local cooperation;

and a declining steel market. Over the past year promoted the spirit of dedication cultivated new trends and styles of the times and conducted 467 volunteer service

we have adhered to the guidance of Xi Jinping activities throughout the year with 13780 participants in volunteer activities.Thought on Socialism with Chinese Characteristicsfor a New Era fully implemented the spirit of This year we have enhanced governance and remained steadfast in our progress. We created the party-building brand “Ironthe 20th National Congress of the CPC and the Shoulders Bear the Mission Furnace Fire Reflects the Original Aspiration” leading high-quality development with high-

Second and Third Plenary Sessions of the 20th quality party-building; achieved effective connection and standardized operation of corporate governance the information

Central Committee firmly grasped the main line disclosure received the highest A-level (excellent) evaluation from the Shanghai Stock Exchange with the ESG rating rising

of forging a strong sense of community for the to “A-level”; carried out comprehensive reforms of state-controlled listed companies accelerating the transformation

Chinese nation and resolutely advanced along towards innovation-driven and reform-empowered development; placed technology innovation in a critical position with

the path of high-quality development. annual R&D investment intensity exceeding 5% creating more favorable conditions for the continuous emergence of highly

skilled talents.This year we have anchored the “dual carbon”

goals and built a highland for ecological Although dreams may seem distant they can be achieved through relentless pursuit; although aspirations may be

civil ization. We have fulf i l led our polit ical challenging they can be realized with unwavering perseverance. Standing at the new starting point of the 70th anniversary

responsibility to build an important ecological of Baogang Group and based on the new height of fulfilling the mission and tasks of state-owned enterprises we will unite

security barrier in northern China completed more closely around the Party Central Committee with Comrade Xi Jinping at its core and with full spirit set sail again on

carbon footprint calculat ions for al l steel the new journey filled with infinite glory!

products successfully released a green and low-

carbon brand and a low-carbon emission steel

process roadmap completed ultra-low emission

transformations explored paths for energy

conservation and emission reduction and became

the first steel enterprise in the region to pass the

A-level performance evaluation for heavy pollution Chairman of Bao Gang United Steel Co. Ltd.weather; vigorously promoted the projects

with “extreme energy efficiency” becoming acultivation enterprise for the industry's “Dual

04 052024 Sustainability Report About Bao Gang United Steel

About Bao Gang United Steel Company culture

Company Building the world’s best rare earth steel Company Dedicate High-Quality Steel Create a

Company overview goal new material production base and an mission Better Life Together

excellent supplier of high-quality rare

earth steel new materials

Company Persistent and Dauntless Above and Company

spirit Distinctive Steel Green HomelandBeyond vsipsiroint

Main business

With CSP wide and thick plate

With 2 world-class large-scale

internationally advanced 2250

universa l ro l l ing product ion

mm hot continuous rolling and

lines and waste heat quenching

supporting cold rolling continuous

production lines and a capacity of

a n n e a l i n g a n d g a l v a n i z i n g

2.1 million tons the Company is

production lines and a capacity of

the world's highest-equipped and

9.7 million tons the Company is

largest high-speed rail production

Bao Gang United Steel was established in 1954. It is one of the 156 key projects during the First Five-Year Plan and the only the largest plate production base Heavy rail base.Plates in the central and western China. profilessteel 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 Gang

United Steel's development highly notable and far-reaching. In 1999 to create a steel listed company Bao Gang United

Steel established Inner Mongolia Bao Gang United Steel Co. Ltd. mainly with rolling assets which was officially listed on the

With 5 seamless pipe production

Shanghai Stock Exchange on March 9 2001 with the stock code 600010. Over the 20 years since its listing Bao Gang United With 3 production lines for strip

l ines of 159 mm and 460 mm

Steel’s total assets have increased 20-fold with equity financing reaching RMB 45.935 billion and its market capitalization steel and a capacity of 2 million d i a m e t e r s a n d a n a n n u a l

has grown from RMB 8 billion to a peak of over RMB 230 billion making it an important steel industrial base in China. tons the Company is an important production capacity of 2 million

high-end wire rod production

tons the Company is one of the

Bao Gang United Steel leverages the resource endowment of co-existing iron and rare earth in Bayan Obo creating the unique base in the northwest China.most comprehensive seamless

“rare earth steel” feature. Its products are widely recognized and praised by downstream users for their good ductility wear Seamless pipe production bases in China.resistance corrosion resistance low-temperature resistance toughness and tensile strength. The products are extensively used in steel pipe Wires

national 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 are

exported 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 of

RMB 1.549 billion compared to 2023. It was awarded the 2024 Inner Mongolia Brand Construction Looking to the future Bao Gang United Steel will adhere to the dual main businesses of “steel + resource development” Product

Benchmark Enterprise marking its seventh consecutive year on the list. It was also included in structur grasp the new development stage adhere to new development concepts and integrate into the new development pattern.the 2024 List of Advanced Manufacturing Enterprises and selected as one of the “2024 China High-quality steel It will unswervingly follow a new path of high-quality development guided by ecological priority and green development +Excellent Steel Enterprise Brands”. series rare earth fully promote the construction of “carbon peaking and carbon neutrality” planning projects and strive to achieve an annual steel

production of 14.62 million tons of iron 15.64 million tons of crude steel 14.76 million tons of commodity billets 390000

Currently Bao Gang United Steel has a crude steel production capacity of 17.5 million tons tons of rare earth concentrate and 650000 tons of fluorite concentrate by 2025. Achieve a product structure characterized

Industrial

It can produce key products such as heavy rails wind power plates wear-resistant steel zinc- chain by “high-quality steel + series rare earth steel” focus on the industrial chain with “cold rolling deep processing + steel pipealuminum-magnesium coated steel plates pipeline steel home appliance steel automotive Cold rolling deep deep processing” as the key aim to become a leading domestic comprehensive supplier and service provider of rare earth

processing

steel and oil pipes. The overall equipment level is internationally leading and thus forming a + steel new materials adopt the operation mode of “deep potential tapping + reform and innovation” focus on refining and

steel pipe deep

production pattern of four high-quality lines: plates pipes rails and wires. processing optimizing achieve first-class comprehensive competitiveness in the domestic market and become a practitioner of the

brand-oriented high-end green and intelligent transformation and development of China's steel industry.

06 072024 Sustainability Report About Bao Gang United Steel

Company history 2023

An 800000-ton fluorite beneficiation production line and a

fluorochemical production line were built achieving large-

2012 scale development and utilization of fluorite resources and deep processing of fluorite resources.

The Company acquired 100% equity of Barun Mining

Co. Ltd. held by Baogang Group and the mining 2024

rights of the West Mine of Bayan Obo Iron Ore.The Company adhered to the productstructure adjustment strategy of “high-quality

2017 steel + series rare earth steel” with sales of 2016 variety steel reaching 8.1634 million tons a

The Company acquired the rare earth and niobium year-on-year increase of 9.65% and rare earth

The rare earth steel plate project was fully selection-related assets of the Bayan Obo Resource steel production exceeding 1.5 million tons

completed which marked a milestone in the Comprehensive Utilization Project of Baogang reaching a record high.transformation and upgrading of the steel

2001 Group's Baoshan Mining Co. Ltd. accelerating the industry in the autonomous region. development and utilization of the Company's tailings

The Company was officially listed on the pond resources.Shanghai Stock Exchange.

2018

The Company acquired the assets

of China Northern Rare Earth's

rare earth concentrator increasing

the production capacity of rare

earth concentrate to 450000 tons which also resolved the issue of

2009 2015 Organizational

competition between the two companies.structure

The Company’s annual capacity of steel The Company acquired the mineral Board of

reached 10 million tons joining the ranks processing-related assets of Baogang Shareholders

of domestic steel enterprises with an Group the iron selection-related Party Board of

annual output of over 10 million tons. assets and tailings pond assets of Committee Supervisors

Strategy and ESG Committee

the Bayan Obo Comprehensive Board of Audit committee

Utilization Project. Directors

Nomination Remuneration

Management and Assessment Committee

level

1999

Inner Mongolia Bao Gang United

Steel Co. Ltd. Ltd. Was established.

0809

Chief Engineer Office

Steel Research Institute

Technology Center

Marketing Center

Low-Carbon Energy

Management Center

Equipment Engineering

Department

Manufacture

Department

Safety Management

Department

Planning Department

Finance Department

Legal Affairs

Department

Audit Department

HR and Organization

Department

Discipline Inspection

Commission

Securities Financing

Department

Youth League

Committee

Labor union

General Affairs

Department2024 Sustainability Report New glory - 2024 responsibility events

New glory - 2024 responsibility events

Taking the opportunity of celebrating the 70th anniversary Bao

Gang United Steel further promoted the deep integration of party In August 2024 the country’s first 100-meter rail crane remote control

building and production and operation creating the party-building project was successfully implemented in Bao Gang United Steel andbrand of Bao Gang United Steel “Iron Shoulders Bear the Mission has been officially put into use in the rail and beam factory.Furnace Fire Reflects the Original Aspiration”.In January 2024 8 products including low-alloy structural steel On August 21 2024 20 sets of 40 carriages loaded with 25-meter

medium-thick plates declared by Bao Gang United Steel were rail products were successfully dispatched under the traction of

named “Golden Cup Quality Products” for the physical quality of locomotives. This is the first shipment organized by Bao Gang

metallurgical products. United Steel in accordance with the new 25-Meter Rail Loading Plan.On January 30 2024 Bao Gang United Steel was awarded thehonorary title of “Dual Carbon Best Practice Energy Efficiency On September 24 2024 the 2024 Bayan Lecture Hall - High-endBenchmark Demonstration Plant” for the 2023 Steel Projects with Forum on the Application of Rare Earths in Steel and the “high-Extreme Energy Efficiency. On September 24 Bao Gang United quality steel + series rare earth steel” Strategic Product Seminar was

Steel’s green and low-carbon brand and low-carbon emission steel held by Bao Gang United Steel at Baogang Hotel.process roadmap were officially released.On May 9 2024 Bao Gang United Steel held a completion ceremony In November 2024 Bao Gang United Steel issued the Group

for the carbon reduction and pollution reduction upgrading and Standard for High-Strength Steel Plates with Low Welding Crack

transformation project of the non-oriented silicon steel annealing Sensitivity for Engineering Machinery and entered the formal

furnace of the rare earth steel cold-rolled plate plant. implementation stage.In December 2024 Bao Gang United Steel's brand “BISG” was on

In June 2024 thanks to its excellent management performance in

the list for seven consecutive years with a brand value of RMB 26.159

ESG Bao Gang United Steel's ESG rating jumped two levels from

billion. Bao Gang United Steel was named a benchmark enterprise

“BB” to “A”.for brand building in Inner Mongolia.In December 2024 Bao Gang United Steel’s “Pipe ProcessingIn July 2024 the scientific and technological achievement of “newIntelligent Coupling Line Application Case of Steel Pipe Branch”

green and low-carbon new technology and equipment for fully dry

was successfully selected into the 2024 List of Typical Applicationsensible heat recovery of converter gas” co-developed by Bao Gang

Cases of Advanced Computing Empowering New Quality Productive

United Steel successfully passed the evaluation of the evaluation

Forces. This project is the only project selected in the Inner Mongolia

committee. This scientific and technological achievement has

Autonomous Region and is also one of the four projects selected in

reached the international leading level.the steel industry.In July 2024 Bao Gang United Steel's independently completed Bao Gang United Steel has newly built four occupational health“Seamless Steel Pipe Packaging System Upgrade and Optimization and medical stations for rare earth steel rail beams ironmakingResearch” and its participation in the completion of “key technology and steelmaking forming a medical service model with the factorydevelopment and application of high-quality rare earth intermediate outpatient clinic as the center + four stations enabling the factoryalloy preparation” won the second prize of the Metallurgical Science to organize emergency rescue and emergency first aid in a timely

and Technology Award. manner in the event of an emergency.In August 2024 Bao Gang United Steel was officially approved to be

included in the 2024 List of Advanced Manufacturing Enterprises

which means that Bao Gang United Steel has been recognized

by national authoritative departments in terms of cutting-edge

technological advancement and exemplary development quality. 2024 Chronicle

10 112024 Sustainability Report Responsibility issue

Relying on the unique advantage in “rare earth steel” Bao Gang United Steel has always adhered to the goal of “the world’sResponsibility issue I best 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 earthsStrengthening the brand and forging new materials in steel make it harder tougher and stronger” has become the Company's brand logo. In 2024 Bao Gang United Steel

continued to promote the plan of launching new products. 15 new products were launched for the first time in the industry and

for major national equipment Bao Gang United Steel with cumulative sales of 18900 tons and new economic benefits of RMB 8.1365 million.Focus on innovation and research high-end materials Respond to strategy create extraordinary projects

Bao Gang United Steel has made accelerating the development of new quality productive forces and steadily promoting Bao Gang United Steel actively participates in national key engineering projects with products widely used in major national

high-quality development its key work tasks placing “innovation” at the core position implementing a rigid growth projects such as the “national treasures” FAST radio telescope sightseeing bridge the Beijing-Shanghai High-Speed

mechanism for R&D investment constantly activating innovation systems and mechanisms expanding the proportion of Railway the Qinghai-Tibet Railway the Three Gorges Project the “China Lunar Exploration Program” and the Beijing

mid- and high-end products and is committed to achieving key breakthroughs in the field of rare earth steel new materials. Daxing International Airport. This not only represents Bao Gang United Steel's solid footprint in the national construction

journey but also highlights its exceptional quality and strong capabilities laying a solid foundation for national development

and modernization.? Rare earth welding wire steel

Case: Bao Gang United Steel successfully delivered 500 meters of high-quality rail and pioneered laying on

the Jining-Datong-Yuanping High-Speed Railway

In October 2024 based on long-term technological accumulation the

Company innovatively researched and developed rare earth additives

The Jining-Datong-Yuanping High-Speed Railway is a key

and their application technologies and successfully launched China's

construction project in China's 14th Five-Year Plan and an

first new rare earth welding wire steel product achieving significant

important part of the “eight verticals and eight horizontals”

improvements in the drawing and welding properties of the new rare

high-speed rail network's Hohhot-Nanning Corridor. On May

earth welding wire steel providing new materials for China's welding Nationwide Launch of Rare Earth Welding Wire Steel 15 2024 Bao Gang United Steel successfully delivered and

fields.pioneered the laying of 2430 tons of 60N U71MnH G rail on

the Jining-Datong Section of the entire line. This rail type offers

? Ultra-high strength cold-rolled dual-phase steel superior hardness wear resistance and longer service life

ensuring safer smoother and more efficient train operations. 60N U71MnH G Rail Laying Site

In August 2024 the Company successfully rolled out the first 1180

MPa cold-rolled dual-phase steel coil marking a new era in ultra-high

strength steel products. This achievement broke through the strength

limit design capability of the rare earth steel cold-rolled plate plant’s Wind power steel Ship steel Steel furnace tube Oil casing

product catalog signifying a milestone in the Company's cold-rolled

product variety adjustment. 1180 MPa Cold-Rolled Dual-Phase Steel

? Enhanced weather resisting steel Qinghai-Tibet Railway Beijing-Shanghai express Three Gorges Dam Project Jiangyin Bridge

railway

In December 2024 the Company successfully developed and rolled out

rare earth atmospheric corrosion resistant steel with high strength and

high weather resistance. This steel effectively resists various corrosive

media in the atmosphere achieving a qualitative leap in corrosion

resistance while reducing resource waste and environmental pollution Chairman Mao Memorial Hall Olympic venues

Ningxia Water Ecology Eye In The Sky Project

Project

showcasing the Company's strong capabilities in rare earth steel Rare Earth Weather Resisting Steel

technology innovation and product development.

12 132024 Sustainability Report Responsibility issue

Responsibility issue II

Bao Gang United Steel closely follows the national strategy for industrial Internet development actively integrates into the

grand blueprint of national manufacturing digital transformation and the “Digital Inner Mongolia” construction. Upholding

Empowering intelligence and activating a new the core concepts of “green intelligent innovative and shared” driven by intelligent production and smart operation

engine for the steel industry it fully promotes the grand construction of intelligent manufacturing striving to create a digital benchmark in the steel industry.Achieve “one-click” production ? Build digital workshops ? Building an intelligent factory

Bao Gang United Steel is gradually building a full-life-cycle intelligent steel enterprise from intelligent equipment to digital Bao Gang United Steel has focused on advancing 7 Bao Gang United Steel actively introduces digital and

workshops and then to intelligent factories realizing the closed-loop of intelligent manufacturing end-to-end marketing smart workshop pilot projects including the cold zone intelligent technologies relying on the intelligent control

and supply chain ecosystem further improving production efficiency greatly enhancing employee satisfaction and quality of centralized control of the rail and beam plant and the one- platform to achieve real-time monitoring and precise

life demonstrating the Company's profound social responsibility. click steelmaking project in the steelmaking plant and scheduling of production processes which optimizes

has completed the optimization and iterative upgrades resource allocation improves production efficiency

? Introduce intelligent equipment of related scenarios. It has cultivated the beam and rail and provides valuable experience for the intelligent

wide and thick plate production lines and the Barun transformation of the steel industry.In 2024 Bao Gang United Steel had successfully put 23 sets of industrial robots into operation achieving the goal set by smart mining site as digital and intelligent demonstration

the Group to replace human labor in 91 “3D” positions within 3 years gradually realizing unattended production processes production lines accumulating replicable and promotable

remote centralized control and one-click production with a numerical control rate of 83.17%. At present 196 intelligent digital and intelligent application experiences promoting

equipment projects including industrial robots online equipment monitoring and intelligent lubrication have been more transparent production processes and more refined

implemented in 89 application scenarios. management providing solid technical support for

In 2024 Bao Gang United Steel's Steel Pipe Branch's “Pipe Processing Intelligent Coupling Line Application Project” was achieving lean production.the only case in Inner Mongolia Autonomous Region selected by the Ministry of Industry and Information Technology as a

typical application case of “Advanced Computing Empowering New Quality Productive Forces” and also one of the four

projects selected in the steel industry.Rare Earth Steel Plate Plant’s AI Assistant Empowers “Smart Hot Rolling”

Case: Bao Gang United Steel introduced intelligent coal quality inspection robot system

Build “smart” operations

As a smart “health examiner” for coal samples the intelligent coal quality inspection robot system can fully

automatically detect items such as ash volatile matter sulfur hydrogen and calorific value in coal. In October 2024 Based on the construction of smart factories Bao Gang United Steel has gradually established an integrated business and

after the introduction and use of this system by Bao Gang United Steel's Chemical Inspection Center it improved finance platform strengthened the digitalization of the cost accounting process and the intelligent management of the

work efficiency reduced employee labor intensity and enhanced the accuracy and fairness of inspection data. production process realized the close connection and real-time data transmission and sharing of various management links

such as production sales procurement and finance optimized internal processes improved the scientificity and accuracy of

decision-making and enhanced the operational efficiency and management level of the enterprise.Case: Bao Gang United Steel successfully issued its first electronic invoice

On March 21 2024 Bao Gang United Steel successfully issued its first

electronic invoice through the Inner Mongolia Electronic Taxation Bureau

platform of the State Taxation Administration marking Bao Gang United

Steel's active response to the tax electronic reform and further promoting

the deep digitalization of Bao Gang United Steel's integrated business and

Intelligent Coal Quality Inspection Robot System finance. Bao Gang United Steel's First Electronic Invoice

14 152024 Sustainability Report Responsibility issue

Against the backdrop of increasingly fierce global resource competition and the grand era of promoting sustainable

Responsibility issue III development domestically Bao Gang United Steel centered on the Bayan Obo resources has built the resource and

comprehensive utilization industry into the third main business and the third pole of development in line with the national

Rare treasure house broad prospects for strategic resource development plan and layout. The Company promotes the comprehensive utilization of Bayan Obo

resources builds the largest niobium and fluorite industry in China fully taps the production capacity resource-saving

diversified development capacity resource conversion capacity and green development capacity of self-owned resources and strives to create a

demonstration base for the comprehensive utilization of polymetallic resources.Bayan Obo Mine Case: New minerals shine and strengthen the “security chain” of strategic resources

Bayan Obo has long been known as the “rich divine mountain” and the “world’s hometown of rare earth” with its abundant The Bayan Obo Mine is a vital strategic resource treasure trove for the nation and the primary resource supporting Bao

mineral resources being one of its advantages. The Bayan Obo Mine is a globally renowned polymetallic co-associated Gang United Steel's development. In 2024 the Bayan Obo Mine successively discovered new minerals such as Obo

deposit of iron rare earths niobium scandium and fluorite divided into the Main Mine East Mine and West Mine. The Niobium Zhai Scandium Amphibole Fluorocarbon Calcium Neodymium and Fuyuan Niobium which continuously

West Mine belongs to Bao Gang United Steel a co-associated deposit of iron and rare earths with a cumulative proven iron provides strong support for the security of the national strategic resource industry chain and supply chain.ore reserve of 660 million tons and an annual mining capacity of 10 million tons.Bayan Obo Mine resource reserves:

Cumulative proven iron ore reserves of World's largest

1.26 billion tons rare earth reserves

Niobium reserves second only to Brazil Largest

ranking second in the world associated fluorite reserves in China

Niobium-Scandium New Minerals Release Conference and Niobium-Scandium Resource Comprehensive Utilization Academic Seminar

Tailing pond

In 2015 the Company invested RMB 26.8 billion to acquire the Group's tailings pond resources. The tailings pond resources

amount to approximately 200 million tons with rare earth reserves equivalent to 13.82 million tons of oxides making it the

world's second-largest rare earth mine. In 2018 the Company acquired the assets of China Northern Rare Earth's rare earth

concentrator increasing the production capacity of rare earth concentrate to 450000 tons

Comprehensive resource utilization

Bayan Obo Mine To maximize resource value and continuously enhance industrial competitiveness the company leverages its resource

advantages rapidly advances the construction of the hydrogen-based mineral phase transformation project for medium

and low-grade oxidized ores deepens the utilization of iron ore resources; based on fluorite resources integrates with

In January 2024 the Fluorite Beneficiation Company and Fluorine Chemical Company construction projects achieved Baotou City's fluoromaterial industry planning couples with Bao Gang United Steel and surrounding resources develops

breakthrough progress faster than the previously disclosed 7-year production and construction period completing high-performance fluoropolymers and extends the industry into fluorosilicone resins and functional membrane materials;

production and construction ahead of schedule promoting the high-efficiency recovery and high-value utilization of accelerates the technological upgrade of coke by-products and the construction of comprehensive gas utilization projects

associated fluorite resources in the Bayan Obo Mine achieving the expected investment return target and becoming a new extends the benzene hydrogenation and tar deep processing industry chain conducts technical reserve research and

profit growth point for Bao Gang United Steel. develops more high-value-added products.

16 17Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Environment

“Steel” flowers bloom with green vitality

The rise of green beauty is timely and ecological civilization paints a splendid chapter. Guided by the

concept of “a community of shared life between humans and nature” Bao Gang United Steel deeply

practices the era proposition of “lucid waters and lush mountains are invaluable assets” and integrates

ecological civilization construction into the development genes of the enterprise. Based on the national

“carbon peaking and carbon neutrality” strategic goal the Company reconstructs the environmental

governance paradigm with systematic thinking builds an ecological management system covering the

entire industry chain incorporates climate governance into the core strategy innovates and implements

coordinated actions for energy conservation carbon reduction and pollution reduction promotes the

green transformation of the entire production process builds a green urban steel plant and injects steel

power into the painting of a beautiful China with bluer skies greener mountains and clearer waters.Key performance

The number of environmental pollution incidents Carbon emission intensity in 2024 decreased

and environmental fines faced within the fiscal

by 1.86% compared to 2023

year are both 0

Completed self-generated electricity of The greening coverage rate of

6.5 billion kWh the plant area is 50.1%

reducing external electricity purchase costs

by RMB 575 million year-on-year

01 The first steel enterprise The title ofwith A-level “Green Development performance in heavy pollution weather in Inner Benchmark Enterprise”

Mongolia Autonomous Region by China Metallurgical News

ENVIRONMENT

18 19Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Strengthen environmental an environmental emergency each secondary organization of Bao Gang United Steel establishes an emergency command

organization based on the emergency plan for environmental emergencies fulfills the initial disposal responsibilities and is

management responsible for the initial organization and command of environmental emergencies. When a company-level environmental

emergency occurs Bao Gang United Steel and its secondary organizations conduct emergency linkage. Bao Gang United

Bao Gang United Steel deeply cultivates the foundation of green development adheres to the concepts of green circular Steel establishes an emergency command headquarters responsible for issuing command orders personnel and material

and low-carbon development improves the environmental management system enhances environmental risk prevention allocation. The secondary organization’s emergency command headquarters provides real-time feedback and conducts

awareness solidifies environmental responsibilities establishes environmental emergency mechanisms and promotes emergency rescue as required forming a more powerful emergency response synergy.standardized normalized and long-term environmental management. In 2024 Bao Gang United Steel was awarded the title

of “Green Development Benchmark Enterprise”. and “Clean Production and Environment Friendly Enterprise in Iron and ? Creation of an environmental protectionSteel Industry in China” atmosphere

Governance During “World Environment Day” “National Low-CarbonBao Gang United Steel resolutely implements the environmental responsibility requirements of “joint responsibility of Day” and “Energy Conservation Publicity Week” Bao Gangthe party and government dual responsibilities for one position and accountability for dereliction of duty” appoints one United Steel carries out a series of promotional activities.assistant general manager in charge of environmental protection and manages environmental protection work professionally Through morning meetings “three meetings and onethrough the Manufacture Department. The Manufacture Department has 1 environmental protection director 1 director lesson” and other forms it organizes employees to deeply

of the environmental protection management office and 3 professional management groups including 15 professional study laws regulations and policy documents related

technicians. There are a total of 47 environmental protection managers and specialists in secondary organizations. to energy conservation and carbon reduction. Banners

are hung and slogans are posted in office buildings and

Strategies workshops. Public accounts are used to organize the study

of regulations and policies and to watch promotional videos

Bao Gang United Steel identifies its own environmental risk sources formulates environmental risk prevention and effectively linking online and offline efforts to advocate for

emergency measures systems designates key positions or responsible agencies for environmental risk prevention and low-carbon living concepts and enhance the environmental

The Power Supply Plant Conducted Low-Carbon Promotion Activities on

“World Environment Day”

establishes regular inspection and maintenance responsibility systems. protection awareness of all employees.Risks Measures Indicators and goals

The quality of personnel is uneven The Company organizes employees to participate in the identification of job

environmental awareness is weak environmental factors strengthens the professional knowledge and ability Indicator Unit 2024

and there is insufficient identification training of environmental protection management personnel and improves its

of environmental factors in positions. overall environmental protection management level. Environmental investment RMB 100 million 37.71

Number of environmental pollution incidents Item 0

Impact risk and opportunity management

Environmental fines faced during the fiscal year RMB ten thousand 0

Bao Gang United Steel strictly complies with the relevant requirements of the Environmental Protection Law of the

People’s Republic of China and the Environmental Protection Tax Law of the People’s Republic of China and other laws and Proportion of sites with environmental risk assessments % 100

regulations formulates environmental management manuals procedural documents and management systems further improves

the environmental management system and institutions enhances the environmental protection emergency mechanism and Proportion of sites certified with ISO14001 environmental % 100

management system

fosters an environmental protection atmosphere. The Company has passed the environmental management system certification

and regularly conducts reviews to ensure the scientific and effective management of environmental compliance.Employee training coverage rate on environmental

%100

protection

? Environmental emergency mechanism

Through on-site investigations and data collection Bao Gang United Steel identifies environmental risk receptors around the In 2025Bao Gang United Steel will promote the coordinated development of green manufacturing and green industries

Company. According to the Risk Classification Method of Enterprise Environmental Emergencies it accurately assesses the achieve ultra-low emission transformation and long-term maintenance of A-level enterprise performance in heavy pollution

environmental risk level and formulates practical emergency plans for environmental emergencies. After the occurrence of weather; ensure no major or above sudden environmental incidents occur throughout the year.

20 21Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Combat with climate change Risk type Risk parameter Potential impact Measures

Increased ? Hold annual meetings

In recent years the frequent occurrence

Bao Gang United Steel deeply recognizes the urgency and importance of addressing climate change. In accordance with severity and for flood prevention of global extreme weather events may

frequency of and ice prevention

the Management Measures for Carbon Emission Trading (Trial) Management Measures for Carbon of Baogang Group cause periodic interruptions in the

Physical risks Acute risks extreme weather and winter heating

and Management Measures for Carbon of Bao Gang United Steel the Company ensures that every decision and action Company’s raw material and fuel supply events (such establish working

meets the requirements of sustainable development achieving harmonious coexistence between the enterprise and the water resource supply etc. thereby as heavy rain groups and issue

affecting production.environment. snowstorms etc.) emergency plans.The constraints of industry energy

Governance conservation emission reduction and environmental protection policies

The Company mainly obtains climate-related risks and opportunities through its Party Committee and the general manager’s are increasingly strengthened. The

implementation of the Management

office meeting reviewing the Bao Gang United Steel Annual Energy Saving and Carbon Reduction Work Plan and manages

Measures for Carbon Emission Trading

risks and opportunities through low-carbon energy work meetings reporting on energy and low-carbon work and irregularly (Trial) increases the penalty risks for

listening to related thematic reports and professional training; the Low-Carbon Energy Management Center fully undertakes Expansion of the enterprises participating in carbon

carbon market

all low-carbon energy management functions of the Bao Gang United Steel sector (including agencies). By the end of 2024 trading. The expansion plan of the

carbon pricing ? Establish a low-carbon

the Low-Carbon Energy Management Center had a total of 15 management and technical personnel. national carbon market is released mechanism and energy center set up

specifying that 2024 will be the first

increased costs professional technicians

control year. The Company will participate to study policies

Strategies in the national carbon market compliance actively participate

trading carbon price facing increased in industry and

Bao Gang United Steel comprehensively considers climate-related risks and opportunities from different dimensions such compliance costs and carbon price regulatory authority

as time space and type identifies and sorts out climate-related risks and opportunities from the two categories of physical risks thereby increasing production and exchange training

operation costs and constraining the

risks and transition risks and proposes a series of targeted response measures effectively deploying climate risk response timely interpret policy

Company's strategic development.plans and seizing business opportunities. documents learn

The EU National Committee announced carbon market andthe launch of the world's first “carbon CBAM rules andPolicies andType Reporting period Measures Transformation border tax” plan imposing tariffs on

conduct company-level

laws and

risk Carbon tariff imported carbon goods including steel policy and regulation

regulations

cement etc. which will inhibit the export promotion training.? Responses are made by formulating annual work plans monthly summary and

of some of the Company's products ? Strengthen carbon

scheduling of work progress and formulating emergency plans for sudden situations. increase export costs and affect revenue. emission statistical

Short accounting to ensure

1-2 years ? The relevant energy-saving and carbon reduction projects planned for the year have The shift from dual control of energy

term data accuracy and been included in the Company's annual infrastructure and technical transformation consumption to dual control of carbon reliability.investment plan with continuous project demonstration throughout the year and emissions is an important measure for

investment decisions are made in accordance with regulations. China to address global climate change

? Develop a carbon

and promote the comprehensive green peaking and carbon

transformation of economic and social neutrality action plan

The formulation of the “14th Five-Year Plan” energy conservation special plan as a Transformation development. Under this policy guidance

clarifying specific goals

?of the “dual primary energy consumption will be and key tasks for eachMedium mid-term industrial development response to climate change provides an overall

5 years control” policy further restricted driving enterprises to

stage.term plan for the Company's current situation analysis risk and opportunity identification enhanced carbon transition towards renewable energy new

planning ideas and goals in low-carbon and energy aspects. constraints energy and low-carbon development. The

Company needs to invest in technology

research and development technology

? Responding to the group-level carbon peaking and carbon neutrality work plan introduction and facility upgrades during

Long 5 to 10 years

clarifying the Company's “dual carbon” strategic direction carbon peaking time and the transformation process leading to

term and above

carbon neutrality path. increased investment and operational

costs which may impact revenue.

22 23Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

? Conduct low-carbon Impact risk and opportunity management

metallurgy research

based on the T80 Bao Gang United Steel actively engages in carbon asset management and energy- 2024 continued to promote

In response to the national “dual carbon” list and promote saving and carbon reduction actions continuously promotes carbon asset management energy-saving and carbongoals and to achieve the Company's “dual the application of strengthens carbon emission control and achieves efficient coordination and rational reduction projectscarbon” goals significant investment technologies such as

Low-carbon allocation. In 2024 Bao Gang United Steel completed the carbon footprint calculation

will be required in the future for the waste heat and energy

technology for all steel products continued to promote 18 energy-saving and carbon reduction

research and application of low-carbon recovery elimination of 18

transformation

metallurgical technologies. However high-energy-consuming projects among which the distributed PV power generation project (Phase II) on the

these technologies are still immature and equipment and process factory roof was connected to the grid with an annual power generation of 20 million

Technology carry considerable uncertainty. upgrades intelligent kWh continuously improving the Company's energy conversion efficiency.and cost scheduling and

comprehensive water-

saving management.Completed the preparation of the 2023 greenhouse gas emission reports for the steel sector and

? Optimize resource Prepare

During the low-carbon transformation two managed power plants and successfully passed the verification by a third-party verification

allocation to reduce greenhouse gas

process the Company will increase the agency commissioned by the Department of Ecology and Environment of Inner Mongolia

long-term operational emission reports

research and application of energy- Autonomous Region.Transformation costs; seek policy

saving environmental protection and

cost support; promote Conduct carbon Investigated and sorted out the sources of carbon data parameters and statistical methods involved

low-carbon smelting technologies which

technology innovation inventory for the in the legal boundaries of steel production and the ten major processes further clarifying the carbon

will lead to increased costs and the risk of

to lower the cost of low- steel sector data and management processes at each stage.value loss in existing fixed assets.carbon technologies.Build a digital The platform can achieve online reporting of the Company's carbon emission data parameters

? Actively conduct carbon electronic storage of supporting materials and other functions meeting the national monthly data

Driven by the trend towards green and

research on low- management reporting requirements while significantly improving the quality of the Company's carbon emission

low-carbon development market demand

Increased carbon emission platform data and the efficiency of accounting and analysis.for green and low-carbon steel products

demand for steel and organize

will continue to rise intensifying industry By completing the transformation of the thermal power plant's main pipe system to enhance heating

green and low- EPD certification Participate in

competition. If the green transformation capacity and other measures the quota gap for Bayan Beneficiation Branch and Baogang Thermal

carbon products work aiming to carbon emission

is slow it may lead to a reduction in the Power Plant in this compliance period was reduced by 41000 tons year-on-year saving over RMB 4

complete 3 EPD report trading

Company's market share. million in compliance costs.certifications by 2024.Actively utilized carbon market policies and carbon price rules timely tracked the price trends of

Market ? Optimize procurement Participate in CEA and CCER and through subscription and price locking Bayan Beneficiation Branch and the

strategies to reduce various emission

managed Baogang Thermal Power Plant purchased a total of 70000 tons of CCER at a price lower

Energy and resource prices are highly reliance on single reduction

than CEA during the 2023 national carbon market compliance period reducing compliance costs

likely to rise due to the impact of sources; invest in mechanisms

Rising raw with a combination of CEA and CCER.climate change thereby affecting the technology research

material and fuel

procurement costs of raw materials and and development to

costs Adopted the GreenOre CleanTech’s carbonization chemical process to produce high-purity calcium

fuels leading to increased costs and improve processes and magnesium carbonate iron-containing materials green negative carbon micro-powder and other

other risks. enhance the utilization products truly achieving the resource utilization of solid waste and permanent reduction and

rate of raw materials Low-carbon sequestration of CO2; built a CCUS full industrial chain demonstration project contributing to

and fuels. technology energy conservation emission reduction and low-carbon economic development in China's steel

research and

industry; through four rounds of industrial tests on high scrap ratio in converters continuously

Investors and other stakeholders as development

optimized and adjusted production processes determined the carbon reduction process path of

well as the general public will pay more? Actively respond to “increasing converter scrap ratio + optimizing raw material structure + increasing green power ratioattention to the Company's climateStakeholder concerns increase + extreme energy efficiency improvement” achieving a 40% reduction in carbon emissions.change response measures and actions

concerns about transparency;

even considering them as key indicators

Reputation climate change participate in public Conduct EPD Release EPD reports for cold-rolled steel strip rail and hot-rolled steel plate and strip on the CISA

of the Company’s performance. This may

response welfare campaigns win certification for EPD platform providing downstream users with transparent and comparable environmental product

bring reputational risks to the Company's

measures recognition from all steel products declaration information throughout the product lifecycle.operations requiring investment

parties.in resources to strengthen carbon Green product Own two green trademarks “BGreeREX” and “BGreeEX” divided into two series: “Low Carbonmanagement to meet their expectations. design Emission Rare Earth Steel” and “Low Carbon Emission Steel”.

24 25Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Case: Bao Gang United Steel's pipeline tubes supported CCUS project construction

In December 2024 Bao Gang United Steel’s Steel Pipe Branch developed and produced pipeline tubes for the first

time providing material support for Baogang Group's 2 million tons (Phase I: 500000 tons) CCUS full-industry-chain

demonstration project while also accumulating product and technical reserves for Bao Gang United Steel to achieve

its “dual carbon” goals.CCUS Full-Industry-Chain Demonstration Project

Indicators and goals

Extreme energy Metallurgical resource Near-net shape Hydrogen-rich carbon Hydrogen-based Extreme energy

efficiency recycling manufacturing cycle blast furnace shaft furnace efficiency

Carbon reduction Carbon reduction Carbon reduction Carbon reduction Carbon reduction Carbon reduction

3-5%10-20%5-10%30-50%50-90%30-50%

100%

Low Carbon Emission Rare Earth Steel

70%

CO2

0%

Low Carbon Emission Steel 2020 2035 2060

Bao Gang United Steel's “Dual Carbon” Technology Roadmap

Product EPD Report

26 27Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Strategies

Promotion of green production ?

Risks Measures

Bao Gang United Steel comprehensively implements the green development concept adhering to the coordinated

advancement of carbon reduction pollution reduction green expansion and growth actively optimizing the energy Unauthorized use of energy without

? New modified or expanded projects must complete relevant procedures as

structure improving water resource efficiency strictly controlling pollutant emissions and promoting the reduction approval or use not in accordance

required and cannot be altered arbitrarily after approval.recycling and harmless treatment of solid waste. In 2024 Bao Gang United Steel was recommended as the 2024 China Steel with approved conditions

Industry Clean Production Environment-Friendly Award-Winning Enterprise.? Promote energy-saving technologies and equipment to reduce energy

consumption;

Energy utilization Low energy utilization ? Establish and improve energy emergency mechanisms to respond to

emergencies;

Bao Gang United Steel strictly follows the requirements of the Energy Law of the People's Republic of China and the 2024- ? Enhance energy-saving awareness and reduce energy waste.

2025 Energy Conservation and Carbon Reduction Action Plan formulating and issuing energy management manuals

? Optimize resource allocation to reduce long-term operating costs;

procedural documents energy-related management systems and daily assessments continuously improving the energy

Transformation cost increase ? Seek policy support to obtain government subsidies;

management system. As of 2024 Bao Gang United Steel and all its subsidiaries have established an energy management

? Promote technology innovation to reduce low-carbon technology costs.system that complies with national standards (GB/T23331) and has passed third-party certification for the energy

management system.? Impact risk and opportunity management

? Governance

Bao Gang United Steel is committed to balancing business development with energy conservation and emission reduction.Bao Gang United Steel has established a 5-layer vertical management hierarchy consisting of teams sections workshops By implementing various energy-saving measures it effectively improves resource utilization efficiency accelerates the(operation departments) plants and Bao Gang United Steel itself following the principle of “responsibility to individuals formation of a resource-saving and environmentally friendly industrial structure and supports the Company's carbonhorizontal coverage vertical depth and systematic control”. It forms an “five vertical and eight horizontal” energy peaking and carbon neutrality goals.management network with 8 processes: mining beneficiation coking sintering (pelletizing) blast furnace steelmaking

rolling and power auxiliary. Improve utilization efficiency

Bao Gang United Steel emphasizes strengthening the linkage and coordination between energy and production focusing

on improving the efficiency of energy production conversion and utilization enhancing sintering and blast furnace

“Five Vertical and Eight Horizontal”

utilization coefficients optimizing raw material structures and reducing fuel consumption per unit. It systematically balances

Management Network

gas resources conducts electricity-saving initiatives increases power generation while reducing external purchases and

persists in the “light off” campaign planning projects to reduce emissions. In 2024 the Company’s comprehensive energy

consumption 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 EfficiencyBao Gang Benchmark Demonstration Plant” for the Steel Projects with Extreme Energy Efficiency.Workshop Plant United Steel

Section (Operation Bao Gang United Steel has achieved significant improvements in the

Team Department) energy efficiency levels of major processes through measures such as

energy structure adjustment accelerated energy-saving technological

transformation and equipment efficiency enhancement. In 2024 Bao- Mining - beneficiation - coking - sintering (pelletizing) - blast furnace - steelmaking - Gang United Steel was honored with the titles of “Dual Carbon Bestrolling - power auxiliary Practice Energy Efficiency Benchmark Demonstration Plant” for the

2023 Steel Projects with Extreme Energy Efficiency and outstandingResponsibility to Individuals Horizontal Coverage progress enterprise in the “Three-Year Action Plan for Energy EfficiencyVertical Depth Systematic Control Benchmarking” for the 2024 Steel Projects with Extreme Energy Efficiency.

28 29Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Use clean energy Goal

In terms of green electricity trading Bao Gang United Steel actively participates in the market continuously increasing the

proportion of externally purchased green electricity effectively reducing the Company’s total carbon emissions; actively ? According to the target requirements of Baogang Group's “14th Five-Year Energy Saving Plan” the

deploys clean energy promoting the optimization of energy mix. By 2024 Bao Gang United Steel completed 6.5 billion comprehensive energy consumption per ton of steel will decrease by 5% by 2025.kWh of self-generated electricity reducing external electricity purchase costs by RMB 575 million year-on-year; a 41.44 MW

rooftop PV power generation project has been completed with the green electricity trading ratio reaching 50%. ? According to the Steel Industry Energy Saving and Carbon Reduction Special Action Plan by the end

of 2025 the proportion of production capacity above the energy efficiency benchmark level in the

steel industry will reach 30% and production capacity below the energy efficiency baseline level will

complete 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 operation

process strengthens the construction of water resource management systems achieves refined control of water resources

Main Construction of the Wind Farm for the Bayan Obo Mine District Green Electricity Bayan Obo Iron Mine Welcomes Its First Hybrid Electric and sets a benchmark for water conservation in the steel industry.Direct Supply Project Mining Truck

? Governance

? Indicators and goals Bao Gang United Steel established a Water Resource Management Committee with the Party Secretary and Chairman

serving as directors Bao Gang United Steel leaders serving as deputy directors and relevant functional departments and

Indicator organization leaders including the Executive Deputy Director of the Low-Carbon Energy Center serving as members; the

office is located in the Low-Carbon Energy Center with the Executive Deputy Director serving as the office director and the

Indicator Unit 2024 Head of Power Operation Management Department serving as the deputy office director.Total energy consumption Tce coal 9431287

Total energy consumption per million revenue Tce coal 138.51 ? Strategies

Ton of standard coal / ton of

Comprehensive energy consumption per ton of steels 629.11 Risks Measures

crude steel

Unauthorized water extraction or water

Steam consumption Tce coal 867641.35 New modified and expanded projects must apply for water extraction permits extraction not in accordance with the

as required and the approved water sources and purposes must not be

approved water extraction permit

Total fuel oil consumption Ton 38225.08 arbitrarily changed.conditions

Coal consumption Ton 9782357.68 Organizations with water intake

Conduct instrument inspections for existing and new/renovated/expanded

exceeding the specified scale have

Diesel oil consumption Ton 38156.71 projects to meet the requirements of GB/T 24789-2022 General Rules for not installed online metering facilities

Equipping and Managing of the Water Measuring Instrument in Water-Use

or the online metering facilities are

Gasoline consumption Ton 68.37 Organization.unqualified or not operating normally.Waste heat energy consumption Tce coal 867641.35 Water-use organizations exceeding

Prioritize the use of unconventional water and cascade water use strengthen

mandatory water quotas have

Waste heat and energy recovery utilization rate % 85.15 monitoring of water quantity and quality at each usage stage enhance cascade not implemented water-saving

and recycled water use and carry out water-saving renovations for water

technological transformations within

Renewable energy consumption (PV) kWh 117680 facilities.the specified period.

30 31Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

? Impact risk and opportunity management Pollutant emission management

Bao Gang United Steel strictly adheres to the Yellow River Protection Law of the People's Republic of China Regulations In accordance with the Emission Standard of Air Pollutants for Steel Smelt Industry and Emission Standard of Air Pollutants

on Water Conservation and Management Measures for Water Resource of Baogang Group and issued the Notice on the for Steel Rolling Industry Bao Gang United Steel releases the Regulations on the Administration of Pollutant Discharge

Establishment of the Water Resource Management Committee of Inner Mongolia Bao Gang United Steel Co. Ltd.; enhance Permits for “one-permit” management of pollutant discharge permits and strict control of pollutant emissions. It strengthens

water-saving awareness conduct technological transformations and comprehensively improve the level of intensive the construction of automatic monitoring facilities for pollutant emissions networks with ecological environment and

and efficient water resource utilization. In 2024 Bao Gang United Steel used 57.9467 million m3 of surface water and relevant departments and formulates self-monitoring plans to reduce the impact of pollutant emissions on surrounding

approximately 70500 m3 of groundwater with total external drainage of 3.147 million m3 achieving the best historical level communities. In 2024 emissions of sulfur dioxide nitrogen oxides and particulate matter decreased by 33% 22% and

of new water consumption per ton of steel. 27% respectively compared to 2023 setting a new historical low for major air pollutant emissions. This makes the Company

become the first steel enterprise in Inner Mongolia Autonomous Region to complete the publicity of ultra-low emissions for

all processes and the first steel enterprise with A-level performance in heavy pollution weather.In 2024

Bao Gang United Steel used approximately total external drainage of

57.9467 million m3 70500 m3 3.147 million m3

of surface water of groundwater

Case: The first comprehensive treatment equipment for circulating cooling water in the national steel industry

was put into use at Bao Gang United Steel

On March 26 2024 the first comprehensive treatment equipment

for 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 and

saving 760000 m3 of new water annually.Comprehensive Treatment Equipment for Circulating

Cooling Water

“Triple-effect Evaporation” Equipment for Sintering Desulfurization Wastewater at Rare Earth Steel Ironmaking Plant

? Indicators and goals Waste disposal

Bao Gang United Steel attaches great importance to waste management strengthens waste classification and recycling and

Indicator Unit 2024

promotes harmless waste treatment to reduce resource waste and minimize adverse environmental impacts.Total water consumption Ten thousand m3 285034.53

Total water consumption per million revenue Ten thousand m3 4.1862

? Governance and strategy

Fresh water consumption Ten thousand m3 5801.73

Fresh water consumption per ton of steel Ten thousand m3 3.87 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 and

Recycled water consumption Ten thousand t 279232.80 opportunities of the organization every six months; the Company's environmental risk and opportunity identification and

Water resource reuse rate % 97.96 evaluation 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 actual

Waste water emission Ten thousand t 314.72

situation.

32 33Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Risks Measures ? Indicators and goals

? Implement clean production audits for emission reduction from the source;

Waste emission indicators

Unclear and unreasonable waste ? Strictly select pollution control technologies;

control methods ? Establish registers to track waste cycles; Indicator Unit 2024

? Strengthen related party management and standardize third-party disposal.Total waste generation Ten thousand t 1323.69

? Develop waste management procedure documents;

? Clarify processes and responsibilities; General waste generation Ten thousand t 1300.90

Waste out of control ? Set up temporary storage areas and manage them compliantly;

Total non-harmful waste generated per million

? Establish monitoring and inspection systems; t 191.06revenue

? Formulate emergency plan and organize drill.Total hazardous wastes Ten thousand t 22.79

? Impact risk and opportunity management Total harmful waste generated per million revenue t 3.347

General waste recycling volume Ten thousand t 959.13

In strict accordance with the requirements of the Law of the People's Republic of China on the Prevention and Control of

Environmental Pollution by Solid Waste Management Measures for Hazardous Articles of Baogang Group Management

Total waste recycled per million revenue t 140.86

Measures for Solid Waste Pollution Prevention and Control of Baogang Group and other documents Bao Gang United

Steel continuously optimizes solid waste disposal processes to strive to achieve a win-win situation for economic and Proportion of recycled waste % 72.4

ecological benefits.Waste disposal measures Waste emission goals

? Establish a direct sales system for water granulated slag with surrounding cement plants to expand By 2025 the Company's comprehensive utilization rate of bulk solid waste will reach 97% (excluding tailings) with 100%

external sales channels for solid waste products compliant disposal and storage of desulfurization gypsum fly ash and tailings and a 100% safe disposal rate for hazardous

? Optimize solid waste processing methods to make solid waste products more marketable and of higher waste.added value

? Explore new ways of solid waste utilization investigate deep utilization projects for desulfurization

gypsum and reduce solid waste disposal costs By 2024

the Company's comprehensive utilization

rate of bulk solid waste will reach with100% a100%

97% compliant disposal and storage of safe disposal rate for (excluding tailings) desulfurization gypsum fly ash and tailings hazardous waste

Disposal and Transportation of Waste Oil Drums at Ironmaking Plant

34 35Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Protect ecological balance

Bao Gang United Steel insists on taking a new path of high-quality development guided by ecological priority and green

development to integrate green concept into every detail of daily work and is committed to building a modern steel

production base that is green efficient and sustainable.Practice of green business concept

By integrating green concept into office processes Bao Gang United Steel guides employees to practice savings and

Chimney Lighting Conducted by Special Steel Branch Greening Project of Roads in the Renovated Steelmaking Plantgreen office to maximize resource savings reduce energy consumption decrease waste emissions build a “conservationefficiency environmental protection hygiene and health” office environment and unit all employees in the consensus of

green development. Focus on biodiversity

Bao Gang United Steel regards the construction of green mines as an important measure to promote high-quality

development and ecological civilization in mines and ensure that ecological environment management in mines is

implemented effectively. By strictly upholding the bottom line for ecological protection it is committed to ecological

restoration and governance to protect biodiversity. Currently the regional ecological environment has significantly improved

with various animals such as white cranes wild ducks fish and hares inhabiting and thriving in the alluvial beaches and

wetlands of the tailings pond area which greatly enriches biodiversity and promotes the formation of a virtuous cycle

ecological chain.Case: Barun Mining Branch promotes green mine construction

Based on the actual ecological environment of the mine Barun Mining Branch sets clear green ecological restoration

goals. A mixture of various shrubs and grasses such as caragana amorpha and alfalfa were planted to explore a new

model suitable for vegetation restoration in cold and arid regions. The No. II-2 dolomite dump No. III-1 rare earth

Sign for Turning Off Lights When Leaving at Rare Earth Steel Ironmaking Plant dump No. III-2 dolomite dump No. III-3 waste rock dump and the southwest dump were treated through slope

cutting and shaping vegetation restoration and pavement and sprinkling which presented a new scene with green

mountains birds' twitter and fragrance of flowers.Build a green factory

Bao Gang United Steel insists on building green ecological steel plants vigorously promotes the coordinated prevention

and control of air water and soil actively advances greening and beautification of the plant area and gradually becomes

a 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.In 2024

Bao Gang United Steel achieved a was awarded the title of

50.1% an autonomous-region-level green factory

green coverage rate in plant area was Scenery of Mine after Treatment

36 37Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Society

Build dreams and benefit the people

Building the foundation of symbiosis with a human centered approach. Bao Gang United Steel deeply

cultivates the concept of “symbiosis and mutual benefit” integrates humanistic care into the core of

corporate governance and builds an ecological network of collaborative development among multiple

stakeholders. In the dimension of value co-creation the Company drives product and service upgrades

through digital transformation and provides customers with excellent quality. At the level of employee

development the Company adheres to the principles of “equality diversity and inclusiveness” improves

the mechanism for safeguarding rights and interests builds a platform for career growth and activates

the innovative potential of human capital. In the field of partner collaboration the Company adheres to

the principle of integrity management builds the foundation for sustainable development of the industry

together with partners deeply integrates itself into the construction of social livelihood continuously

releases the efficiency of industry's feedback to society and paints a picture of common prosperity with

responsibility.Key performance

No major

work safety accidents occurred throughout the year

The Company invested completed achieved

RMB12 million in employee 2203 100%

training throughout the year training projects employee training coverage

02 The number of suppliers the purchase orders on the A total of with a total offor the whole year was bidding and procurement 467 137801632 platform accounted for volunteer services participants100% were carried out

throughout the year

SOCIETY

38 39Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Impact risk and opportunity management

Customer orientation quality first ?

Quality management

Bao Gang United Steel always puts customers first. It builds a strict quality control system for strict quality control and

ensures product quality with high standards; continuously optimizes service processes for efficient and considerate services The Company revises and formulates 15 quality management systems including the Management Measures for Quality Accidents

and promptly collects and processes customer opinions and suggestions for effective improvement of customer satisfaction. of 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 forProduct quality assurance specific tasks at fixed cycles and hot spots” and “process quality and quality objection rectification” to promote the rectification of issues from four dimensions of “immediate action and rectification drawing inferences about other cases from one instanceAdhering to the quality management policy of “strengthening risk awareness stabilizing production process intensifying establishing rules and regulations and closed-loop management” and enhance process quality control capabilities. It strictly

quality management implementing brand building and continuously improving customer satisfaction and loyalty with Bao implement the control standards for harmful substances optimize the management process and evaluation details of qualityGang United Steel's high-quality development strategy as guide and customer needs as driving force” Bao Gang United Steel traceability strictly control the management of harmful elements in self-produced iron concentrate and further improve product

ensures that its product quality meets or exceeds industry standards and meets the diverse needs of customers. safety and quality. It benchmarks against industry leaders establishes benchmarking improvement indicators and promotes the

“dual improvement” of product quality and operational efficiency.? Governance By the end of 2024 Bao Gang United Steel has passed the ISO 9001 Quality Management System and IATF 16949

Automotive Quality Management System certifications; obtained the extended production license for deformed steel bar

The Company's quality management system organization is mainly composed of management functional management products CRCC extended certificate for rail products EU TSI renewal certificate for rail products GOST renewal certificates

departments (mainly including manufacturing and quality equipment human resources finance etc.) product production for H-shaped steel and seamless pipe products in Russia and Kazakhstan renewal certificates for shipbuilding steel pipes

departments support departments (marketing R&D chemical testing measurement warehousing etc.) with relevant plates coils and H-shaped steel from the China Classification Society renewal certificate for shipbuilding steel plates from

responsibilities and authorities clearly defined. the American Bureau of Shipping and annual supervision certificate for weathering resistant structural steel from the China

Classification Society; completed the KRRI product type certification and system on-site audit for rails by the Korean Ministry

Strategies of Transport and CRCC annual supervision audit for rails.?

Quality management achievements of Bao Gang United Steel in 2024

The Company formulates the management document Control Procedure for Risk and Opportunity Management and

? 3 achievements were selected as excellent cases of increasing variety improving quality and creating

Preventive Measures to manage product quality risks through processes such as product quality risk identification product

brands by the China Iron and Steel Association;

quality risk assessment and risk prioritization.? The Company's 11 products including hot-rolled low-alloy structural steel strips hot-rolled low-alloy

structural steel plates and seamless steel pipes for low- and medium-pressure boilers were rated as

Risks Measures “Golden Cup Quality Products” by the China Iron and Steel Association. Among them one rail steel

product for railway applications was rated as “Golden Cup Special Quality Product”;

Promotion of cold-rolled Efforts are made in customer service product development and process stability

automobile steel faces challenges to improve the quality stability of automobile shell plates. ? The Company was selected as “2024 China Excellent Steel Enterprise Brand” and rated as a

benchmarking enterprise for brand building in Inner Mongolia.Opportunities Risks Quality culture

As a strategic product of the Company the Company accelerates overseas The Company continues to implement the

“Belt and Road” policy product certification for heavy rail steel and expands its usage in high-speed rail “Quality Month" activity“Quality Month” activities and conducts

projects in countries such as Russia India and Latin America.systematic quality management knowledge

As a branded product of the Company the Company leverages resource“Carbon peaking and carbon training to improve the participation of alladvantages regional advantages and quality advantages to expand its marketneutrality” Initiative employees in quality management. In 2024

share in wind power steel.the Company organized and carried out the

Development of gas pipeline Increase the sales of high-grade high-value-added pipeline pipes and pipeline annual “quality first” special quality training

industry steel products and enhance the product structure level. QC team activities and Six Sigma project

training and participated in the 2024 QC TeamStrip Plant is Carrying out Filter Cleaning Steelmaking Plant is Conducting “QualityFurther expand the production capacity of zinc-aluminum-magnesium productsDevelopment of western PV Academic Exchange Meeting of the Inner Repair and Replacement Work Month” Special Training

vigorously promote the development of medium- and high-grade non-oriented

industry and new energy industry Mongolia Autonomous Region to strengthen

silicon steel and improve product market share and competitiveness.the quality management level of employees.

40 41Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

? Indicators and goals

Employee development

In 2024 the actual qualification rate of the Company's key products reached 99.06%. The Company's waste and ungraded

product reduction rate was 1.17% a decrease of 0.43 percentage points year-on-year achieving the set goal.With the protection of employees' rights and interests as the cornerstone Bao Gang United Steel carefully balances

By 2025 the Company's waste and ungraded product reduction rate will be 1.12%. To ensure that this goal is achieved

employees' work and life continuously improves the talent cultivation and promotion system fully focuses on employees'

the Company has taken measures such as refining quality defect prevention measures strengthening process control and

occupational health and safety and provides solid growth guarantees and abundant development opportunities for

tackling difficult quality issues and has continued to carry out research on reducing waste and ungraded products.employees.Optimization of customer service

Care for employee growth

Adhering 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 ? Governance

establishes a three-dimensional service model integrating “production sales research and application” continuously

optimizes the service system actively provides value-added services to create a closer and more integrated development The overall employee management strategy of Bao Gang United Steel is decided by the Board of Directors and specifically

community with customers. executed by the management. The Company has established a Nomination Remuneration Assessment Committee with

? Improve service ability functional departments such as the General Affairs Department HR and Organization Department and Planning Department

responsible for managing various affairs such as remuneration and benefits labor rights and interests employee training and post

With marketing R&D and manufacturing experts as the core the Company strengthens the benchmarking and efficient promotion and all employees being covered step by step.collaboration of products technologies and capabilities and continues to establish a “customer-centric” service model. It

forms a technical innovation path of joint R&D and results sharing with users and helps users develop synchronously in the ? Strategies

application of new materials with high-quality products and services.? Proactively respond to complaints Risk points Risk level (ABC) Prevention and control measures

Approve employee transfers in strict accordance with

The Company implements the customer management system Management Measures for Handling of Product Objections Irregular handling of personnel

Level B the transfer principles and human resource efficiency

and Customer Quality Complaints of Bao Gang United Steel and gradually forms a relatively complete quality credit transfer improvement indicators.standard system. It establishes the “Bao Gang United Steel E-commerce” WeChat mini-program a customer feedback

channel to quickly respond to and handle customer complaints and grievances and applies the 8D reporting method Irregular handling of labor contract Handle in strict accordance with regulations and

Level B

to implement rectification and solidify effective measures which provides support for reducing losses arising from signing and termination procedures approval procedures.quality objections. In 2024 Bao Gang United Steel handled a total of 58 quality objections throughout the year with a

comprehensive customer satisfaction rate of 97.17%.? Impact risk and opportunity management

Sales company

(marketing

Quality objection Handling results

department) accepts Adhering to equal employment

handling (End)

customer objections

Bao Gang United Steel comprehensively implements the requirements of the Labor Law of the People's Republic of China and

Provisions on Prohibiting the Use of Child Labor to effectively safeguard the legitimate rights and interests of employees. Fair

Customers raise Understand and Handle according to the treatment is given to employees of different genders ages educational backgrounds ethnicities religious beliefs and cultural

product quality analyze the objections prescribed procedures backgrounds. Any form of employment discrimination and workplace harassment is opposed. The use of child labor and forced

objection handling on site and determine and submit the handling

requirements the solution results to the user for labor is prohibited. Employees' personal privacy is protected. During the reporting period the Company did not experience any

confirmation incidents of child labor forced labor human trafficking discrimination or harassment.? Protect customer privacy Improvement of remuneration and welfare

The Company strengthens customer information management strictly complies with information security regulations such as Bao Gang United Steel continues to strengthen the construction of its remuneration and benefits system. It pays the five social

the Data Security Law of the People's Republic of China Personal Information Protection Law of the People's Republic of China insurances and one housing fund as well as enterprise annuities legally and timely and provides employees with competitive

and Regulations of the People's Republic of China for Safety Protection of Computer Information Systems and establishes a working conditions and remuneration and benefits. It also implements the supplementary medical insurance and supplementary

management system for customer information and privacy protection to effectively ensure customer information security and pension insurance systems in accordance with the relevant requirements of the Corporation to offer comprehensive protection for

transaction security. During the reporting period no customer information leakage incidents occurred. employees.

42 43Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Salary distribution management method Promote talent development

In line with the talent planning and deployment of Baogang Group Bao Gang United Steel constructs a comprehensive talent

? Bias towards key positions high-level technical and skilled talents and frontline operation positions;

introduction cultivation and utilization system with enhancing the talent competitiveness and market competitiveness of Bao

? Optimize the salary structure determine the fixed-to-floating ratio of remuneration based on the Gang United Steel as the core optimizing the talent development ecosystem as the main line deepening the reform of talent

different characteristics of positions; systems and mechanisms as the driving force and building a high-level talent team as the key point. It respects trusts and? Establish a distribution orientation where leading cadres have “low subsistence allowances high encourages talents and helps them success and continuously strengthens and improves its talent work.incentives and unstable income” frontline employees have “basic salary incentives and relativelystable income” and high-level talents and researchers have “high subsistence allowances strongTalent introductionincentives and competitive income”.The Company implements the national decisions and deployments to stabilize and ensure employment. In 2024 it recruited 690

new employees through campus recruitment social recruitment order-based classes veteran resettlement and introduction

Strengthen democratic management of mature talents. Among them there were 2 doctoral students and 29 postgraduate students. The Company encourages

Bao Gang United Steel insists on improving the collective consultation-based mechanism for joint decision-making. subordinate companies to independently “seek talents” quickly introduce “high-end talents” vie for “urgently-neededWalkaround inspections by Workers’ Congress and employee representatives are conducted to effectively listen to talents” and recruit “mature talents”. In 2024 it conducted on-site engineer training for undergraduates from universities in

employee representatives' suggestions for enterprise development. Bao Gang United Steel insists on enterprise affairs the autonomous region for the first time and innovated the “3+0.5+0.5” order-based training model and multi-level internship

transparency. The Company's official website and WeChat are used to disclose important matters related to employees and subsidy incentive mechanism. It undertakes and organizes internship and practical activities for 400 students from Tsinghua

enterprise development to effectively safeguard employees' rights to know participate express and supervise. In 2024 all University University of Science and Technology Beijing Northeastern University Inner Mongolia University of Science and

proposals from the Workers’ Congress were tracked and processed throughout the process with a 100% response rate and Technology etc. which further promotes school-locality and school-enterprise cooperation and exchanges.the proportion of active employees among labor union members reached 100%.In 2024

In 2024 response rate 690 there were 2 29

with a the proportion of active employees among labor new employees through campus recruitment social doctoral students postgraduate

100% union members reached

recruitment order-based classes veteran resettlement students

and introduction of mature talents. Among themresponse rate 100%

Talent promotion

According to the Management Measures for Management Positions and

Cadre Hierarchy System of Baogang Group (Edition 2024) and other relevant

regulations of the Corporation the Company clarifies the job qualification

conditions standardizes the selection and appointment procedures and

improves the training mechanism for level A-F managers. At the same time

it carries out reforms and innovations in the technical and business sequence

team and forms a talent development channel with vertical promotion stages

and horizontal integration bridges.In 2024 the Company established a “dual-track” cadre management system

based on dynamic grade determination by departments with position

management and performance management as the core and gradual

accumulation and improvement of job levels and personnel levels. It promoted

the reform of the management sequence formulated and verified the

managers' integral register and applied it to the determination of personnel

levels grades and job levels. The reform of management positions and cadre

The Second Session of the Second Workers’Congress of Bao Gang United Steel hierarchy system basically achieved a smooth transition.

44 45Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Case: Bao Gang United Steel improves product quality and quantity improvement by establishing technical

and business sequence

Digital training system

Bao Gang United Steel attaches importance to the construction of its talent team. In order to broaden the channels

for talent growth strengthen the construction of talent echelons and stimulate the entrepreneurial vitality of

Requirement Survey management evaluation management assessment management

employees the Company has comprehensively promoted the reform of its technical and business sequence and

built 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 strong Plan Plan management Resource management Budget managementtechnical 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 positions Implemented Online Offline OMO; internal training external training; practical operation on-the-job

from training (OJT); project-based training map-based training

increased from 0.31% to 0.43%The total proportion of technical and business sequence positions increased

from 19.87% to 23.93%. The strict management of talents at levels seven to five has highlighted the subjectivity

Evaluation Project monitoring Effectiveness evaluation Data report

importance authority comprehensiveness leadership and foresight of high-end talents in various professional

fields the on-demand cultivation of talents at levels four to three has strengthened the role of technical talents in

various professional fields and the priority development of talents at levels two to one has consolidated the talent Improve efficiency and reduce costs

foundation which helps the formation of a “pyramid” job position with a reasonable structure scientific echelon

and professional coverage and injects continuous talent vitality into the Company.Management Technical Business Research Skill

sequence sequence sequence sequence sequence

Strengthen Conduct training classes for managers in various fields such as safety production Level F Chief scientist / Economist / Managerialist etc. Chief skill master equipment comprehensive management and compliance to enhance their

manager training

Chief Technical Chief business Chief capabilities and qualities and improve the overall quality of the cadre team.Level E Level E+ Expert director researcher Skill master

Level D Level D+ Technical Business Specialexpert director researcher Operation expert

Senior technical Senior business Senior

supervisor manager researcher Senior technician Strengthen training of Scientifically plan and implement training programs for technical and business

Level C Level C+

Technical Business Principal professional technical personnel and enhance their abilities in technological innovation transformation of

supervisor manager researcher Technician backbones scientific and technological achievements and solving practical production problems.Level B Regional technical Business Deputy principal supervisor supervisor researcher Senior worker

Level A Regional technical Businesssupervisor Director Researcher Intermediate worker

All organizations and workshops conduct comprehensive job skill training; prepareTechnical Salesman Assistantassistant Researcher Primary worker Strengthen training of for national and industry-level vocational skill competitions such as the “ShagangPosition Sequence Hierarchy Chart Cup” and “Magang Mining Cup”; participate in training classes for team leaders in skilled operators steel enterprises to improve practical management skills and international welding

engineer research programs.Talent training

The Company adopts a training organization and operation model that involves tiered management and responsibility by

organizations and active employee participation. This model comprehensively enhances training quality and efficiency from

multiple dimensions innovates training methods and improves the quality of training work. In 2024 the Company continued

to promote the expansion of training work towards digital platform-based and cloud-based training models. It invested

RMB 12 million in vocational education funds completed 2203 training projects with 278000 participants and a training

coverage rate of 100%. A “7+3+N” labor competition structure was gradually formed with a competition participation rate

of 100%.In 2024

It invested RMB completed with a training coverage rate of

12 million 2203 278000 100%

Opening Meeting of Theory Exam of Vocational Skills Competition of Bao Gang United Steel Holds the 2024 Vocational Skills Competition for

in vocational education funds training projects participants

Bao Gang United Steel in 2024 Continuous Casting Workers

46 47Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Enrich employee life Unit: Person 21650 Unit: Person9175

Bao Gang United Steel deepens the care service system with clear levels different focuses and organic connections 8247

which covers hardship assistance warm condolences life services and protection of women's rights and interests. Through 5941

activities such as spring condolences “Summer Coolness” care and autumn scholarship programs employees feel the

warmth 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 volleyball 2069 3782

competitions at Bao Gang United Steel to create a healthy and positive company culture.Number of Number of Number of Number of Number of male Number of female

employees aged employees aged employees aged employees aged employees employees

below 30 30-40 40-50 above 50

Number of Employees by Age Number of Employees by Gender

8%

5%

5%

43%Ironmaking Plant Carries Out the 2024 “Autumn Scholarship for Labor Union of Bao Gang United Steel Purchases Drinking Water Purifiers 57%Excellence in Education” Activity for Mining Units 82%

Turnover rate of Turnover rate of Turnover rate of employees Turnover rate of employees

male employees female employees aged below 30 aged 30-40

Turnover rate of employees Turnover rate of employees

aged 40-50 aged above 50

Employee Turnover Rate by Gender Employee Turnover Rate by Age

Bao Gang United Steel's First Employee Chess (Chinese Chess Go Bao Gang United Steel Holds the Fourth Employee Air Volleyball

Checkers) Competition Competition Ensure safety and health

Bao Gang United Steel is committed to building a comprehensive occupational health and safety management system

? Indicators and goals comprehensively promoting a dual prevention mechanism continuously improving the level of information-based work

safety striving to create a safety culture battlefield and creating a safe and healthy working environment for employees. In

Indicator Unit 2024 2024 Bao Gang United Steel invested RMB 203 million in work safety and achieved zero work safety accidents.Total number of employees Person 25432

Turnover rate of employees % 0.35 ? Governance

Labour contract signing rate % 100

Bao Gang United Steel establishes a Work Safety Committee and an Occupational Disease Prevention Committee sets up a

Social insurance coverage rate % 100 specialized safety management body (Safety Management Department) appoints a safety director and full-time work safety

managers develops the All-staff Work Safety Responsibility System and All-staff Work Safety Responsibility List of Bao Gang

Investment in employee training RMB ten thousand 1200 United Steel conducts annual evaluation of the implementation of the all-staff work safety responsibility system regularly

Per capita duration of employee training Hour 225 organizes 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 safety

Employee training coverage rate % 100

production.

48 49Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

? Strategies

Bao Gang United Steel has thoroughly carried out safety risk control activities comprehensively identified potential safety

hazards and scientifically formulated management measures with the aim of achieving intrinsic safety. The Company's major Structural Control Control Control Control measure 1 measure 2 measure 3 measure 4

risks are primarily concentrated in production processes across industries such as non-coal mining metal smelting metal importance ★★★★★ ★★★★ ★★★ ★

rolling and metallurgical trading. The prominent risks and control measures are as follows:

A Company Plant

Operation

Department Team

Industry

Risk point Existing risks Control measures

category

B A Major risks

A

A A A

Use pre-splitting controlled blasting technology for near slope blasting; conduct

all-weather radar monitoring and no less than three manual inspections per B

Non-coal mine Slope Collapse week for slopes with slope cutting and unloading if necessary; drill drainage B High risk B BC

holes in water-seeping slopes for drainage; conduct acceptance according to

pre-splitting near slope blasting standards. C General risk C C

Keep areas for molten metal smelting and transportation (lifting) dry; ensure D

Converter Other explosions

the proper functioning of safety monitoring control interlock and firefighting D

Metal smelting smelting object strikes burns D Low risk

equipment; provide labor protection equipment and emergency supplies that

Gas holder fires vehicle injuries

meet national and industry standards.Object strikes Inspect tools before operations to ensure they are intact; strictly follow safety

Roll disassembly

mechanical injuries operating procedures during disassembly and assembly; provide labor Risk Level Diagram

Metal rolling and assembly

lifting injuries other protection equipment and emergency supplies that meet national and industry

operations

injuries standards.Metallurgical Infrastructure Object strike Strictly follow safety operating procedures; ensure that special operation

industry and maintenance Fall from height personnel work with certificates; ensure the proper functioning of equipment

trade and repair work Mechanical injury interlocks and protective devices.Class I hazard sources refer to energy

Class II hazard sources refer to states. Logic Schematic Diagram

? Impact risk and opportunity management

Class I hazard Class II hazard Hazard Hazard source

source source source identification

Bao Gang United Steel streamlines and improves its safety management system and formulates the Management Measures

for Work Safety Standardization of Bao Gang United Steel and Management Measures for Hazardous Operations of Bao

Severity Possibility Risks Risk assessment

Gang United Steel which clarify the management responsibilities requirements creation standards and assessment details grading Hierarchical

for work safety standardization. It formulates the Three-Year Action Plan for Work Safety Improvement of Bao Gang United control of risks

Class I control Class II control Control Development of

Steel (2024-2026) and advances the three-year action plan for work safety improvement to ensure the stable and smooth measure measure measures control measures

work safety throughout the year. In 2024 the Company passed the GB/T45001:2020/IS045001:2018 Occupational Health

Management System re-certification and obtained the certificate. Failure List of hazard identification

Class I control measures are for managing

Promote dual-prevention mechanism the nature of energy such as reduction and Investigation

substitution. Hazard

To further implement the main responsibility of Bao Gang United Steel for work safety carry out in-depth hierarchical mechanism Investigation

Class II control measures are for managing operation and control of

safety risk control and safety hazard investigation and governance work the Company compiles the Guidance Manual for

energy control measures such as isolation Control of hidden hidden hazards

Hierarchical Control of Work Safety Risks and Hazard Management for identifying and controlling risks from the source insulation and warning. hazards

and scientifically and promptly investigating and managing safety hazards revises and files the Comprehensive Emergency

Plan for Work Safety Accidents of Bao Gang United Steel issues the Learning Manual for Major Accident Hazard Judgment

Standards organizes special studies on “interpretation of major accident hazard judgment standards” and online special Dual-prevention mechanism work flowexams 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.

50 51Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Promote safety informatization ? Indicators and goals

To further enhance the level of information management in work safety work Bao Gang United Steel has developed

and constructed its own safety information system which includes 21 modules such as risk management hidden danger ? Indicators and goals Indicator Unit 2024

investigation education and training and supervision and inspection to achieve online control of safety processes and

Organize safety emergency drills Times 1462

improve safety management efficiency. The Company has actively promoted the construction of its own work safety risk

monitoring and early warning system and becomes a pilot unit for the construction of work safety risk monitoring and early Coverage rate of safety risk protection training % 100

warning system in iron and steel enterprises in China. The Company has comprehensively promoted the mechanization of Number of work safety accidents Nos. 0

“replacement of personnel with robots reduction of personnel through automation and intelligent unmanned operation”

Number of employees who died due to work-related injuries Person 0

achieving the replacement of personnel engaging in repetitive high-intensity work with robots and improving the level of

essential safety. Work injury rate % 0.033

Lost working days due to work-related injuries Day 806

Safety culture development

Number of lostworking days due to work-related injuries per million revenue Day 0.012

Safety culture is an important component of enterprise safety culture construction. To enhance employees' safety awareness Million-hour injury rate - 0.17

and skills and ensure the stable operation of the Company's work safety the Company establishes 21 safety culture sites to

showcase 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' confidence in work safety and organizes safety lectures and

special safety training to enhance the safety literacy of employees.Deepen industry cooperation

Adhering to the development concept of “coexistence and co-prosperity” with partners Bao Gang United Steel deepens

cooperation with suppliers customers and other stakeholders actively engages in exchanges with industry associations

peer enterprises and universities and jointly seeks industrial development.Safety Knowledge Contest Safety Publicity and Consultation Day Activity

Building a responsible supply chain

Guarantee of occupational health and safety Bao Gang United Steel improves the supplier management system optimizes procurement channels and continuously

The Company deeply implements the “reassurance project” expands “1 center + 4 stations” medical services and actively enhances the social responsibility level of suppliers based on the principles of fairness justice integrity and quality the goal

holds various mental health lectures on topics like psychological health and parent-child relationships. An institution was of establishing a transparent efficient compliant and continuously competitive procurement management system and the

entrusted to test 3988 occupational hazard factor points at Bao Gang United Steel with a 97.1% compliance rate and to management experiences learned from advanced steel mills.test sealed source instruments and radiation devices with radioactive occupational hazard factors with a 100% compliance

rate. In 2024 Bao Gang United Steel experienced no new occupational diseases and the incidence rate of occupational

diseases was zero.? Governance

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 functional

departments (units) as team members. The team implements the procurement system of Baogang Group decides on major

matters such as the construction of the procurement management system and the selection of suppliers takes charge

of the supervision of procurement and studies important matters of internal control risk management and supply chain

management.Bao Gang United Steel and Baogang Hospital's Clinic in front of Factory Coal Coking Chemical Branch Holds a Special Training on Psychological

Collaborate to Conduct a Free Clinic Activity Health

52 53Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

? Strategies Stabilize supply chain

Inventory management

Supply chain disruption risks may have a significant impact on the Company's business. For Bao Gang United Steel there

are mainly supply quality risks and supplier default risks both of which have short-term impacts on the Company's supply The Company implements the overall deployment strategy of “extreme cost reduction” and “inventory reduction”. To

chain safety. ensure stable and orderly production under low inventory an inventory warning mechanism has been established and

implemented which promotes coordinated transportation between varieties and coordinated fund payments.Risks Measures

Guide procurement departments to complete raw material and fuel procurement tasks Case: Coal Coking Chemical Branch achieves relative inventory balance of coking coal through multiple

Supply quality risk according to production needs effectively constrain supplier supply quality and improve measures

procurement cost performance.Coal Coking Chemical Branch of Bao Gang

Collect performance bonds before contract fulfillment and deduct penalties according to

United Steel collaborates with the marketing

the agreement when suppliers default;

center to adjust supply plans based on real-

Supplier default risk Formulate the Management Measures for Extension of Raw Material and Fuel Procurement

t ime inventory dynamical ly manage coal

Contracts of Bao Gang United Steel and ensure that production stability and procurement

costs fluctuate within controllable ranges. storage ensure balanced coal structure timely

replenishment of single coal inventory and

scientif ic and reasonable usage ratios. By

? Impact risk and opportunity management improving internal production organization

and coordination mechanisms the efficiency of

coal unloading by trains and trucks in the coal

Strengthen supplier management preparation system is enhanced and the reserves

Coal Coking Chemical Branch Dynamically Manages Coal Storage

The Company conducts supplier eligibility review evaluation and exit work in accordance with internal systems such as the of single coals in the blended coal are balanced.Management Measures for Material Suppliers of Bao Gang United Steel and focuses on building a responsible supply chain.Procurement management

Supplier eligibility methods include eligibility through public bidding recommended eligibility The Company formulates the “Half Time Half Task” Work Plan and Measures of Bao Gang United Steel establishes special

self-recommended eligibility and temporary eligibility.task forces for the procurement of ore in the area and in the Inner Mongolia scrap steel and alloys. By taking the initiative

Supplier Suppliers of different categories submit various qualification materials such as in safety and in procurement and increasing sourcing efforts and expanding supplier resources as goals it continuously develops new

environmental protection and are granted access after review. This promotes the active

eligibility suppliers and new varieties of raw materials fuels and auxiliary materials to enhance the Company's material procurement construction of a green supply chain.supply assurance and cost reduction and efficiency improvement capabilities.A special leading team for the governance of “escaping emitting leaking and dripping” issues in

the procurement field is established. This promotes the construction clean suppliers.? Indicators and goals

Indicator

Supplier Suppliers are dynamically managed and reviewed and are graded according to annual evaluation

results into Level A (excellent suppliers) Level B (key suppliers) Level C (qualified suppliers) Level

review Indicator Unit 2024D (temporary suppliers) and Level E (unqualified suppliers).Number of suppliers Nos. 1632

Number of suppliers audited and evaluated annually

for corporate social responsibility environmental and Nos. 1632

other ESG-related aspects

Supplier At the end of each supply year the Company's relevant departments evaluate suppliers based on

evaluation subjective and objective indicators such as supply quality price level and contract fulfillment. Proportion of procurement orders on the bidding and % 100

procurement platform

54 55Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

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 improve

competitiveness; implement green supply chain management and increase environmental investment to promote

sustainable development.Lead industry standards

Bao Gang United Steel attaches great importance to

the 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 the

standardized development of the industry. In 2024 Bao Strategic Product Seminar Site

Gang United Steel presided over (or participated in) the

formulation and revision of a total of 8 officially released

standards including 1 international standard 3 national Enhance people's well-being

standards 1 industry standard and 3 group standards.Bao Gang United Steel Released the First Set of Group Standard for

It also formulated and revised a total of 31 enterprise

High-strength Steel Plates for Engineering Machinery in the Steel Industry Bao Gang United Steel actively responds to the national rural revitalization strategy provides strong support for local

standards and 26 provisional technical conditions. in China

industrial development through targeted assistance; emphasizes strengthening communication and cooperation with

Promote industry exchanges surrounding communities leverages its professional and resource advantages to carry out charitable activities and jointly

builds a harmonious and symbiotic community environment.Bao Gang United Steel actively cooperates with state-owned enterprises universities and other institutions collaborates

with Baowu Carbon and Sinopec for central-local cooperation to promote regional economic synergy and engages in Promoting rural revitalization

university-enterprise cooperation with Northeastern University University of Science and Technology Beijing and Shanghai

University to further enhance the Company's product R&D capabilities. At the same time efforts are made to expand Bao Gang United Steel integrates the resource advantages of the assisted regions to continuously promote rural economic

cooperation fields which gradually extend from traditional fields to newer and more promising fields to jointly discuss the development and social progress. In 2024 subordinate companies of Bao Gang United Steel purchased a total of RMB 5.6415

bright future of industrial development. million worth of consumption assistance products through Inner Mongolia Tie Hua Culture Industry Investment CO.Ltd. and

Baogang Group Wankai Industrial Co. Ltd. which effectively helped local farmers increase their income.

5.6415 millionHonorary Certificate of“2024 Bao Gang United Steel and University of Science and Technology Beijing Held the Launch Ceremony ofOutstanding Central-Local Cooperation “Ten Thousand Students Entering Hundred Enterprises Enterprise Tour of USTB Students” Activity Bao Gang United Steel Honored as “2024 Outstanding Listed Company in RuralCase” Revitalization Practices”

56 57Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Build a harmonious community

Bao Gang United Steel fulfills its responsibilities as a state-owned enterprise by actively engaging in community

development improving the urban landscape assisting in the construction of civilized cities and continuously promoting

the construction of a new pattern of urban grassroots governance characterized by joint contribution collaborative

governance and shared benefits. 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 Company

conducted 467 volunteer service activities throughout the year with 13780 participants and several volunteer teams from

various organizations including Steel Pipe Branch were awarded the title of Autonomous Region-Level Advanced Collective

in Youth Volunteer Service which significantly enhanced the brand effect and social recognition of youth volunteer services.In 2024 Volunteer Service Activity of “Youth Contribution Volunteer First Strive to Become Lei Feng in the New Era” on Youth League Day

The Company conducted with

467 volunteer service activities throughout the year 13780 participants

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 Blood

Donation in Baotou City. 6 employees of Bao Gang United Steel were recognized as advanced individuals for blood Activity of “Carrying forward the Spirit of Lei Feng and Establishing a Volunteer Service Activity of “Healthy Clinic in the Community”Sense of Serving the People” on Youth League Day

donation in Baotou City.Volunteer Service Activity of “Celebrating the 70th Anniversary of the Factory's Establishment Young Volunteers Show Their Responsibility”

Award Ceremony

58 59Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Governance

Promote stability like a rock

Reform empowers a new situation and governance upgrades bring a new chapter. Bao Gang United Steel

takes Party building as its core engine deeply roots the spirit of the Third Plenary Session of the 20th CPC

Central Committee in its governance structure and constructs a governance paradigm that deeply integrates

Party 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 of

sustainable development. At the same time it takes technological innovation as its strategic pivot optimizes

the allocation of R&D resources promotes two-way breakthroughs in technological breakthroughs and

transformation of results activates the “first driving force” for high-quality development contributes hard-

core strength to serving national strategies and industrial upgrading and demonstrates the benchmark value

of state-owned enterprise governance in the new era.Key performance

The “first issue” the theoretical learning center The reform was carried out in

was studied group of the Party Committee

conducted 9 categories 48 specific tasks with36 studied 24 studies the completion rate of key tasks reaching 94%

There were no commercial There were no lawsuits

bribery or corruption incidents or major administrative penalties due to unfair competition

03 The Company owned and participated in the construction of The Company developed2 national scientific 3 provincial academician research platforms platforms 2 workstations 67 varieties and nearly 300 grades of new rare earth steel materials.

GOVERNANCE

60 61Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Adhering to the leadership of Party building Persistently focus on ideology

Bao Gang United Steel persistently focuses on ideological construction consolidates development synergy from multiple

Adhering to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Bao Gang dimensions such as “idle talk” news publicity ideology and national united front against invasion strengthens ideological

United Steel comprehensively implements the general requirements for Party building in the new era and the Party’s foundations and injects powerful spiritual momentum for high-quality development.organizational line in the new era continues to play the leading role of Party building by taking forging a strong sense

of community for the Chinese nation as the main line effectively transforms the Party’s political and organizational

advantages into the Company’s innovation and development advantages and leads and guarantees the Company’s

Deepen the working mechanism of “four understandings five talks and six visits” build

high-quality development with high-quality Party building.Deepen a grid-based responsibility network solve the urgent and difficult problems of employees

with genuine care and create a harmonious and stable development environment. Bao

Uphold a firm political stand “idle talk” Gang United Steel was awarded the title of National Excellent Metallurgical Organization in

Ideological and Political Work for 2023-2024.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 significance of the “two Adhering to the concept of “publicity is also productivity and strong brand is alsoestablishes” strengthen the “four consciousnesses” stay confident in the “four matters of confidence” and achieve the competitiveness” the Company has built a three-dimensional communication pattern of

“two safeguards”. They strictly implement the “first issue” learning system promptly study and convey important speeches Strengthen “traditional media+new media+outdoor media” with daily updates on official social media

news accounts more than 1100 pieces of information pushed annually and more than 100000 articles and instructions from General Secretary Xi Jinping and arrange for their implementation. In 2024 the Company's

video views on dedicated channels. The Company has cooperated with Baotou Airport

Party Committee studied the “first issue” 36 times conducted 24 studies by the theoretical learning center group of the publicity to set up large billboards to display the corporate image in an all-round way and enhance

Party Committee held 7 discussions and integrated them with actual work deployment arrangement and implementation. brand influence.Meanwhile they urge grassroots organizations to continuously improve the study quality of the theoretical learning center

group arrange for the inspection and observation of these studies and achieve full coverage of inspection and observation Uphold bottom line thinking implement ideological work responsibilities steadily promote

across all subordinate companies. Focus on the “433” ideological work law carry out standardized actions on the site formulate

ideology emergency response rules for sudden public opinion organize ideological special training

courses and ensure the safety and controllability of the ideological field.In 2024

the Company's Party Committee 24 Carry out “one week and two months” activities with high quality actively promote the studied the “first issue” conducted studies held Enhance “Internet + Ethnic Unity” initiative regularly conduct the mass education practice activity

36 by the theoretical learning center 7 national united of “feeling the Party's kindness listening to the Party's words and following the Party’s times group of the Party Committee discussions front against path” create an “observable sensible and effective” ethnic communication and exchange

invasion environment and allow the awareness of the Chinese national community to be deeply

rooted in the hearts of the people.The Company Organizes Training Class for Improving Ideological Work The Company Was Awarded the Title of National Excellent Metallurgical

Bao Gang United Steel Arranges for Party-mass Work Capabilities Organization in Ideological and Political Work for 2023-2024

62 63Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Case: Promote the implementation of Party discipline education through multiple measures ? Organize the annual reporting meeting on primary Party building work by Party organization

Consolidate secretaries;

In 2024 Bao Gang United Steel organized Party discipline education with a high degree of ideological political

Party building ? Complete the annual Party building assessment for 26 Party committees (general branches);

and action consciousness. A work schedule clarifying 18 goals key learning points time nodes and responsible

responsibilities

departments was promptly formulated. Party lectures were delivered by the Company's Party Secretary and Chairman ? Self-inspect 10 issues related to personnel work as feedback from superiors in inspections

audits and special work.personally with over a hundred participants. A research group was established to conduct full-coverage research

and guidance on Party discipline education across all organizations. Party organizations at all levels were organized

to study the Regulations on Disciplinary Actions of the Communist Party of China and General Secretary Xi Jinping's ? Properly conduct the “two fees” budget and financial management;

discourses on comprehensively strengthening Party construction through the establishment of the theoretical learning Strengthen ? Conduct the annual “excellence” campaign and select 6 advanced Party committees and

center group of the Party Committee “three meetings and one lesson” leading cadres' Party lectures and thematic organizational 16 Party branch models;

discussions to ensure the effective implementation of Party discipline education. functions ? Promote the construction of “strong Party branches” and establish 1 autonomous-region-

level strong Party branch model.? Standardize the Party member recruitment process formulate an annual development plan

Consolidate the and ensure the quality of the Party member team;

basic team ? Hold training classes for Party organization secretaries and Party affairs workers to enhance

their professional capabilities.? 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

benefits and services;

Innovate Party

? Improve the Party building management information platform to enhance the efficiency of

building methods daily Party building management;

? Explore the highlights of Party building in various organizations and promote the linkage of

theory organization work and other aspects.Special Party Lecture on Party Discipline Education

Consolidate the foundation

Bao Gang United Steel has laid a solid foundation for Party building strengthened It allocated RMBthe construction of primary Party organizations and enhanced the “three basicsconstruction”. It standardized the guidance for the change work of 8 Party committees 5.3087 million

held the reporting meeting on primary Party building work by Party organization

of Party fee for 2024

secretaries completed the 2023 Party building assessment for 26 Party committees

according to regulation

(general branches) of Bao Gang United Steel and promoted high-quality development

led by high-quality Party building. Bao Gang United Steel has properly conducted the

“two fees” budget and financial management. It allocated RMB 5.3087 million of Party

fee for 2024 according to regulations and regularly trained Party members to enhance

the cohesion and combat effectiveness of Party organizations and provide strong political

and organizational guarantees for the high-quality development of the Company. Demonstration Training Class for Party Branch Secretaries and Party Affairs Workers

64 65Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Standardize corporate governance Board of The Board of Supervisors fully performs its supervisory functions oversees the Company's financial

Supervisors status raised funds related transactions periodic reports insider information registrations and the

Bao Gang United Steel establishes a scientific and reasonable governance architecture clarifies the responsibilities legality and compliance of the duties performed by the Company's directors and senior managers

of governance entities with the Board of Directors Board of Supervisors and management each performing their reflects the opinions of employees and safeguards the legitimate rights and interests of the

duties to make the Company's operations more standardized and efficient. It actively responds to state-owned Company shareholders and employees.enterprise reform policies stimulates enterprise vitality and improves operational efficiency to help enhance its market

competitiveness.In 2024 the Company convened

Improvement of governance system 5 Board of 14 Board of 10 Board of 6 15 meetings of

In accordance with the Company Law of the People's Republic of China and other laws regulations and regulatory

Shareholders’s Directors’ Supervisors’ special meetings for Specialized Committee of

requirements Bao Gang United Steel revises certain provisions of the Articles of Association and rules and regulations meetings meetings meetings independent directors the Board of Directors

such as the Work Rules of Independent Directors Work Rules of the Special Committee of the Board of Directors and

Management 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 of 11members on the Board of Directors 1 4 independent directors 2 2 female directors

Directors 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 and Bao Gang United Steel was awarded the It received the highesteffectively balance each other to continuously enhance the quality of the listed company. At the same time the Company “Outstanding Practice Case of the Board of A-level (excellent) evaluationadheres to the high integration of Party organization construction and corporate governance architecture. Major issues are Directors for the Listed Company” from the Shanghai Stock Exchange for

by the Association for Public Companies information disclosurefirst studied by the Party committee to fully leverage the Party committee's role in “setting the direction managing theoverall situation and ensuring implementation”. 1.The data is as of April 18th 2025.

2.The data is as of April 18th 2025.

Board of Shareholders

Strategy and ESG

Committee

Board of Supervisors Deepen state-owned enterprise reform

Board of Directors Audit committee Bao Gang United Steel focused on the deployment of deepening and enhancing state-owned enterprise reform aiming

to strengthen core functions and improve core competitiveness comprehensively accelerating the deepening and

enhancing of state-owned enterprise reform and fully advancing key tasks such as the reform of market-oriented operating

Nomination Remuneration

and Assessment Committee mechanisms significantly improving enterprise management and governance capabilities.Management level In 2024 the Company issued the Comprehensive Reform Plan of Bao Gang United Steel promoting the implementation of 9

categories and 48 specific tasks respectively setting work goals and measures and clarifying responsible leaders responsible

organizations and responsible persons with a key task completion rate of 94%. Deepen the new round of tenure-based

Board of The Company convenes and holds meetings of the Board of Shareholders in strict accordance with contract reform set differentiated assessment indicators and weights according to the “stretch mechanism” promote

Shareholders relevant regulations and requirements. A combination of on-site and online voting is available to the matching of performance indicators with job

provide convenience for shareholders to participate. The Company treats all shareholders equally responsibilities and achieve full coverage of contract-

and effectively ensures all shareholders' equal rights to know and make decision on major company based management. Continuously deepen the special

matters. campaigns for loss reduction and elimination as well

as enterprise restructuring and reduction and address

the operational losses of controlled and equity-

Board of During tenure directors fully exercise their rights fulfill their obligations and responsibilities andparticipated companies with tailored strategies (“oneDirectors actively safeguard the legitimate rights and interests of the Company and all shareholders. Theenterprise one policy”). All consolidated subsidiaries

Company leverages the independence and professionalism of independent directors to continuously

under control have fulfilled their loss reduction tasks

enhance the rationality standardization and scientific nature of company decisions. The special

and the enterprise restructuring and reduction goals

committees of the Board of Directors fully play their roles in collecting analyzing and demonstrating

have been achieved as planned. Bao Gang United Steel participated in the Group's reform deepening and

decision-making information to provide strong support for the decisions of the Board of Directors. enhancing action promotion meeting and the tenure-based contract signing

ceremony

66 67Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Improvement of compliance system ? Impact risk and opportunity management

Improve compliance management

Bao Gang United Steel regards compliant operation as the core pillar of high-quality development based on integrity

and compliance comprehensively implementing national laws regulations and regulatory requirements strictly Bao Gang United Steel continuously improves the compliance operation mechanism promotes the coordination and

controlling anti-corruption anti-graft and anti-unfair competition risks actively responding to investor concerns by connection of compliance management with the current management system achieves the normalization and standardization

enhancing information disclosure transparency injecting robust momentum for sustainable development. of compliance management work and establishes routine compliance and major decision-making compliance review

mechanisms. Issue the Compliance Management Measures of Bao Gang United Steel and the Three-Year Compliance

Faithful and compliance management Management Action Implementation Plan of Bao Gang United Steel (2023-2025) making the compliance management

system increasingly complete. Establish a “template library” for Bao Gang United Steel contracts effectively preventing

Bao Gang United Steel strictly adheres to the Company Law of the People's Republic of China Central Enterprise contract risks. Promote business process and information digitization laying a solid foundation for the company to update

Compliance Management Measures and other relevant laws and regulations continuously improving compliance and improve the compliance risk database.management policies and systems actively practicing compliance culture strengthening compliance management and

control and creating a standardized and legalized operating environment. Case: Bao Gang United Steel strengthens the regular meeting mechanism for compliance management

? Governance Bao Gang United Steel holds quarterly compliance managementmeetings where they “set a theme organize a learning sessionBao Gang United Steel established a compliance management committee building a compliance management work systemand share a batch of cases”. These meetings report on the

composed of decision-making level management level and execution body integrating compliance management into

progress of key compliance tasks for the quarter study and

the entire process of decision-making management execution and supervision achieving clear compliance management

communicate relevant compliance management systems and

responsibility boundaries implementation to positions and accountability to individuals.share typical cases comprehensively enhancing the compliance

The Party Secretary Chairman and General Manager of the Company as the primary responsible persons for promoting the

awareness and work level of leaders and professionals in various

construction of the rule of law in Bao Gang United Steel fulfill the roles of key organizers promoters and practitioners of Bao Gang United Steel holds the second quarter

business areas. compliance management meeting

compliance management ensuring that compliance management is advanced from top to bottom. The Chief Compliance

Officer is the core management personnel for the Company's compliance management directly responsible to the

Company's principal responsible person. Their main duties include overseeing compliance management affairs leading Strengthen compliance risk management

the construction and operation of the compliance management system organizing the lead department for compliance

management to carry out specific tasks and serving as the key leader of the compliance management system. The Company The Company strengthens the management of major compliance risk events ensuring effective identification and assessment

and its affiliated departments organizations wholly-owned and controlled subsidiaries have set up 109 compliance officers of compliance risks beforehand; fully understanding the specific circumstances of major compliance risk events during the

who possess compliance knowledge and review capabilities. They undertake compliance management and review tasks process collaborating internally responding quickly and actively taking countermeasures; and summarizing and reviewing

communicate with the second and third lines of defense and ensure the smooth progress of compliance management work. afterward 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 and

Effectiveness external typical and common compliance risk cases as carriers to conduct in-depth analysis revealing risk points through Decision-making level

Board of Directors Board of Supervisors and Compliance Management special meetings and case notifications effectively preventing compliance risks.Committee Compliance awareness is more firmly

established

Organizational leadership is more

Management level robust Build a compliance culture

Management layer lead department for compliance management System construction is more completefunctional departments and organizations with management functions The Company takes opportunities such as the “Civil Code PromotionMechanism operation is more smoothProcess management is more Month” “National Low Carbon Day” and “12·4” National

Execution body standardized Constitution Day to conduct centralized promotional activities. Carry

All organizations branches and controlled subsidiaries Risk prevention and control are more

effective out legal publicity through online compliance training courses offline

organization of various special lectures cloud platform APP and

? Strategies other forms. All employees sign the Compliance Commitment Letter

ensuring that they act in accordance with regulations and operate

The Company manages compliance risks through four compliance management lists mainly including the legal and according to rules using “small compliance” in their positions to

regulatory list compliance risk list key position compliance responsibility list and process control list. In 2024 the Company support the Company's “comprehensive compliance” creating a The Company's business legal risk and compliance guidance

updated compliance risks increasing from 212 items to 216 items. good atmosphere that promotes full compliance. training course

68 69Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Strengthen tax management ? Strategies

The Company strictly adheres to tax laws and regulations actively establishes and improves the Company's tax management

Based on the current management status and issues identified through inspections audits and other work the Company

system and effectively prevents tax risks. The Company's finance department tax management group coordinates overall tax

categorizes integrity risks into ideological and moral risks key area risks external environment risks institutional mechanism

management work while providing tax guidance and consultation to branches and subsidiaries. The finance departments of

risks job responsibility risks and business process risks. In 2024 the Company supervised and guided various units to

each branch and subsidiary are responsible for the internal tax management of their respective companies.identify 1027 integrity risks optimized 258 work processes promoted the revision and improvement of 168 systems and

The Company in accordance with relevant tax management systems standardizes processes such as tax accounting

facilitated the resolution of 73 issues.declaration and payment tax file management and tax-related contract management to ensure timely accurate and

compliant tax accounting processing. At the same time the Company actively cooperates with tax authorities in inspections

and 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 regulations In 2024

and internal tax management systems in routine operations and promptly rectifies any identified issues. During the

the Company supervised and guided various units to identify optimized

reporting period there were no major case of tax violations.

1027integrity risks 258 work processes

Collection of Tax

Management Invoice Tax-related tax policies inspection

and training response promoted the revision and improvement of facilitated the resolution ofof internal tax and tax file contract

personnel management management management and self-

Tax Tax-related Tax risk for tax Tax planning inspection

accounting accounting management personnel management management 168 systems 73 issues

declaration and financial

and payment statement

management management

? Indicators and goals Risk type Dscription

Insufficient in-depth study of Xi Jinping’s Thought on Socialism with Chinese

In 2024 the Company reviewed 1279 compliance items; achieved 100% compliance review for major decisions important Characteristics for a New Era leading to wavering ideals and beliefs. Weak

Ideological and moral risks

systems and significant contracts; and had no major litigation arbitration or other risk events. sense of purpose in work with serious formalism and bureaucracy. Poor sense of

In 2025 Bao Gang United Steel will launch the “Enterprise Compliance Management Capability Enhancement Year” integrity and self-discipline lacking in family ethos construction.continuously improve the compliance management system strengthen the three lines of defense in compliance management;

In numerous functional business areas such as strategic managementdevelop Bao Gang United Steel's “Compliance System Map enrich compliance guidelines and manuals across businessprocurement and marketing and engineering construction due to their high

areas optimize the quarterly compliance management meeting mechanism enhance litigation case management improve Key area risks level of specialization there is a tendency for internal management to be non-

supervision and assessment mechanisms strengthen compliance awareness among employees and elevate the level of law- standard and insufficient risk identification.based enterprise management.Due to the impact of industry “unspoken rules” company personnel may exhibit

External environment risk

behavioral misconduct constituting illegal activities such as commercial bribery.Anti-commercial bribery and anti-corruption

Incomplete regulations on the exercise of authority large discretionary space

Bao Gang United Steel has established a comprehensive anti-commercial bribery and anti-corruption mechanism and Institutional mechanism risks

and lack of checks and balances and supervision.through regular warning education activities strengthens employees' integrity awareness resolutely upholds discipline and

combats corruption providing strong support for the Company's high-quality development. Due to the special nature of position responsibilities influenced by requests from

Position responsibility risks specific related parties leaders or key personnel may deviate from behavioral

? Governance norms and professional ethics leading to improper performance or inaction.Bao Gang United Steel precisely focuses on key areas with high integrity risks and weak supervision adding disciplinary Non-standard business processes or lack of control and supervision failing to

Business process risks form closed-loop management with loopholes that may allow personnel to

committees in 14 key units and adding full-time disciplinary inspection cadres in another 3 organizations effectively

exploit their positions for personal gain or engage in power-money transactions.improving the quality and efficiency of supervision work.

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2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

? Impact risk and opportunity management Reporting and whistleblower protection

Bao Gang United Steel fully leverages the role of supervision synergy openly and smoothly provides channels such as

The Company continues to improve the anti-corruption institutional system carries out honest administration and anti-

reporting boxes and reporting hotlines to encourage employees customers suppliers and any other informed individuals

corruption activities and cultivates a culture of integrity providing a solid foundation for long-term stable development.to report violations of discipline and law such as corruption. The Company publicizes the complaint and reporting

Improve the institutional system mechanism through Baotou Daily WeChat public account internal work notices and other forms to further enhance

employees' awareness of the Company's reporting channels. At the same time the Company attaches great importance to

Bao Gang United Steel insists on integrating system construction throughout the entire process and all aspects of honest protecting whistleblowers strictly ensures the confidentiality of reporting information and whistleblowers and safeguards

administration and anti-corruption improving the institutional system strictly enforcing systems and enhancing governance the legitimate rights and interests of whistleblowers.efficiency. The Company focuses on key areas critical links and key positions especially high-risk areas positions and

management positions with authority over “people finance materials and affairs” to improve a transparent execution

? Indicators and goals

system. 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.In 2024 the Company will achieve full coverage of discipline and law education for party members and employees. In

2025 the Company will achieve full coverage of honest administration and anti-corruption education and training for party

Routine supervision and inspection

members and employees.Bao Gang United Steel conducts detailed and practical routine supervision carrying out special rectification on typical and

prominent issues found during supervision inspection and investigation. Advance the “three no-corruptions” in an integrated

manner promote the integration of “punishment prevention and governance” maintain a high-pressure stance against Anti-unfair competition

corruption deepen case-driven reforms and promote normalized and long-term governance. Continue to consolidate the spirit

The Company strictly adheres to the Anti-monopoly Law of the People's Republic of China and the Anti-unfair Competition

of the Central Committee's eight-point decision strengthen supervision and reminders on key nodes and “key minorities” persist

Law of the People's Republic of China. Pay attention to the risks of anti-monopoly concentration of operators and abuse of

in special governance such as “extortion during vehicle unloading” and key clue verification and thoroughly address the issues of

market dominance that may be faced in strategic cooperation joint ventures and other areas and include fair competition

misconduct and corruption around the masses fostering a new atmosphere of integrity. Adhere to strict investigation of various

in the scope of compliance review. Regularly organize training and seminars inviting industry experts to teach to enhance

problem clues and do a good job in the “second half of the article” of case handling seriously addressing issues such as loopholes

employees' ability to identify and prevent unfair competition practices. Establish an internal supervision mechanism for anti-

in the system or inadequate implementation of the system found during the investigation.unfair competition to provide strong support for the Company's steady development. During the reporting period the

Create an anti-corruption atmosphere Company was not involved in any litigation or significant administrative penalties due to unfair competition practices.Bao 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 discipline

education. Targetedly through various channels such as holding warning education conferences party committee theoretical

study center group meetings and “three meetings and one class” typical cases are reported to strengthen warning

education with a 100% coverage rate in all units. When planning to When adding new When attending industry association

establish a joint strategic cooperation meetings product ordering

venture with partners: or joint venture meetings etc.: avoid discussing

analyze and sort out projects: conduct price market segmentation etc.the anti-monopoly internal review and with competitors or upstream and

risks of operator evaluation of operator downstream customers; avoid using

concentration. concentration. one's market dominance to require

the counterparty to trade with

oneself or a designated third party

thereby creating the risk of abusing

market dominance.Bao Gang United Steel held 2024 Meetings on Party Conduct and Bao Gang United Steel's Party Organization conducts integrity education

Upholding Integrity Construction and Anti-corruption Work and Warning activities on party members' and cadres' knowledge of discipline and law

Education Conference

72 73Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Investor relations management Innovation-driven development

Bao Gang United Steel attaches great importance to the protection of investors' rights respects investors rewards investorsand protects investors. In accordance with relevant laws and regulations and the Shanghai Stock Exchange's regulations on Bao Gang United Steel actively responds to the national and regional strategic call for “implementing innovation-driveninformation disclosure by listed companies the Company promotes communication and interaction with investors through development” adheres to the guidance of technological innovation and progress focuses on improving organizational

various channels laying a solid foundation for the Company's sustained and stable development. mechanism innovation continuously stimulates the vitality of research entities enhances R&D efficiency strengthens

independent innovation capabilities accelerates the construction of an innovative Bao Gang United Steel with annual

R&D investment intensity reaching 5.46% making technological innovation the primary driving force for the Company's

development.Governance

Bao Gang United Steel established the “Science and Technology Management Committee” adhering to the working

principles of “efficiency pragmatism simplicity transparency and compliance” strengthens the management of the

Company's technology innovation work and ensures the orderly advancement of the Company's technology management.The Science and Technology Management Committee focuses on the following responsibilities

Small and medium investors visit Bao Gang United Steel Bao Gang United Steel hosts the 2024 Baiyun Forum - High-end Forum

on RareEarth Applications in Steel and StrategicProduct Seminar on Approve R&D and reward expenses for“PremiumQualitySteel + Rare Earth Steel SeriesClarify the strategic goals and guiding scientific research projects and carry out

principles of technological innovation; supervision and management of the use

The Company adheres to the “inviting in” and “going out” strategy. On one hand the Company of R&D funds;in collaboration with the exchange and securities firms organized two “Investors Visit Bao Gang Approve the action plan forUnited Steel” activities where more than 70 industry professionals visited and learned about the technological innovation; Coordinate and solve key and

Communication Company's operations. Through strategic product seminars the Company invited more than 40 difficult problems in scientific

and exchange with professionals for research. In addition the Company received visits from multiple securities firms Provide resource allocation and research activities that cannot be

investors and investment institutions. On the other hand the Company's leadership led roadshows in guarantees for the implementation solved by the execution body;

multiple locations promoting the Company's strengths with more than 30 fund companies and of the technological innovation

securities firms participating effectively enhancing investors' recognition and confidence in the Supervise and manage action plan;

company. the work of technology

and execution bodies

The Company actively responds to investors through various channels patiently answers Supervise and guide the

Routine in scientific research

consultation calls and addresses inquiries via interactive platforms and collective online process of technological

communication The Science management and guide the

reception activities. Hold three regular report performance briefings innovatively adding innovation activities science

channels are smooth and Technology establishment of a technical

explanation and presentation sessions. and technology management

Management expert database in scientific activities and research projects;

In terms of public The Company strengthens online public opinion monitoring releases highlight news on popular research management;Committee

opinion management platforms and promotes company performance through cooperative media to enhance

and media promotion shareholders' understanding of major matters. Review and approve

Market value The Company monitors stock prices daily and compares them with peers forming reports; Review and approve annual outstanding scientific and

management is analyzes shareholder registers monthly tracks changes in key investors' holdings; compares data research work plans and annual technological personnel

orderly from 28 steel companies to assess its position drafts analysis reports and formulates measures. research projects; and achievements;

To enhance investor confidence the Company has released a buyback plan. It repurchased Convene a science and technology

Protection of rights

116322900 shares with its own funds through centralized bidding trading which will complete Review and approval of major foreign conference to commend and reward

and interests of

the cancellation in March 2025. The Company has formulated a market value management plan technical cooperation projects or organizations and individuals that

shareholders

to safeguard company value and shareholder rights improving long-term incentive mechanisms. technology (results) export projects; have achieved outstanding result.

74 75Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

Strategies Case: Enabling innovative development Bao Gang United Steel joins hands with University of Science and

Technology Beijing to build a talent enclave

Risk Risk description Measures Bao Gang United Steel is comprehensively promoting innovation-driven development and actively connecting with

? Strengthen feasibility studies and assessments before University of Science and Technology Beijing to jointly build a talent enclave. In 2024 based on the establishmentThe development of new technologies technology R&D and comprehensively analyze technical of the Joint Innovation Center of Bao Gang United Steel and University of Science and Technology Beijing “Beijingmay cause technical difficulties to be difficulties and potential risks; Bao Gang United Steel Technology Co. Ltd.” will be registered to jointly build an innovation consortium with deep

Technical overcome or the expected results to not? Establish technical backup plans to enable timely switching or integration of industry academia and research. The study and research activity that “ten thousand students visitrisks be achieved due to the immaturity of theadjustment when encountering technical problems; hundreds of enterprises at Beijing science and technology enterprise tour” was held attracting 25 masters and 3

technology which may cause scientific

research projects to be delayed or fail. ? Continue to track technological development trends and doctoral students to exchange ideas. Launch the Steel Backbone Class which will jointly train high-quality talents

introduce external technical resources. through projects to build momentum for innovative development.The market demand is unstable and

changes rapidly forecasts of market

demand for new technologies and new ? Strengthen market research and improve the accuracy of Case: Bao Gang United Steel won another great result in 2024 China Innovation Method Competition

products are inaccurate and it is difficult market forecasts;

Market to transform innovative results into

? Develop diversified market strategies to reduce dependence In November 2024 the final of China Innovation Method Competition came to an end. The Bao Gang United

actual value; on a single market;risks Steel team performed well and finally won 1 second prize 1 third prize and 3 excellence prizes demonstrating the

? Adjust innovation direction and product functions in a timely

The market competition is fierce and manner according to market changes to improve product outstanding level of innovation method application and enterprising spirit of scientific and technological workers.competitors may launch similar or more market adaptability.advanced technologies and products

more quickly to seize market share.Impact risk and opportunity management

? Strengthen the foundation for innovation

Bao Gang United Steel revised and issued the Scientific Research Project Management Measures of Bao Gang United

Steel and issued the Notice on Further Adjustment and Optimization of Relevant Management Authority of Scientific

Research Institutions. Optimize the promotion and evaluation mechanism for scientific research talents and fully stimulate

and mobilize the creative vitality and motivation of scientific researchers through equity options dividends etc. Establish

long-term and regular industry-university-research cooperation mechanisms with scientific research institutes strengthen

internal and external cross-unit collaborative cooperation on common technologies and realize resource sharing. Establish

a rigid growth mechanism for R&D investment and improve a scientific research management system with clear powers

and functions scientific evaluation and tolerance and error correction. Establish a smoother process for the use of scientific

China Innovation Method Competition Final Scene

research funds and grant greater rights to introduce and use talent. Establish a scientific and complete fault-tolerant

mechanism for scientific and technological innovation and encourage scientific and technological personnel to take positive

actions and innovate boldly. ? Scientific research project management

In 2024 the Company owned and participated in 2.6% 13.52% employees hold a

the construction of 2 national scientific research doctorate degree Bao Gang United Steel optimizes the layout of scientific research projects around national strategies industry development

platforms 3 provincial platforms and 2 academician employees hold a market demand and corporate innovation. In 2024 the Company undertook and would participate in two sub-projects of the

workstations. Promote the construction of a 42.92% master's degree 2030 National Special R&D Plan for New Materials one technology innovation center project of rare earth new materials onetalent enclave establish “Beijing Baogang Steel employees have a key laboratory funding subsidy project of the autonomous region and five key Class A projects of Baogang Group; accelerateTechnology Co. Ltd.” and obtained approval as a 40.96%

bachelor's degree

the cultivation of original scientific research results. Three scientific research projects have been approved for central guidance

Other academic

listed institution outside the autonomous region's

qualifications account of local science and technology development funds; relying on the autonomous region's rare earth steel product research

“Mengkeju” collaborative innovation zone. and development key laboratory 67 varieties and nearly 300 grades of new rare earth steel materials have been formed.R&D Staff Qualifcation Structure

76 77Environment Society Governance

2024 Sustainability Report “Steel” flowers bloom with green vitality Build dreams and benefit the people Promote stability like a rock

? Provide high-end products Science and technology awards in 2024

The Company is accelerating its adjustment pace by targeting high-end production lines and products implementing ? The project titled Mechanism and Industrial Application of Rare Earth Microalloying in Non-API

high-end production line upgrades continuously increasing the proportion of mid-to-high-end products and enhancing Standard Oil Casing won the second prize of the Rare Earth Science and Technology Award.industrial capabilities and product competitiveness. In 2024 the Company completed 11 quality and efficiency improvement ? The project titled Research on the Upgrade and Optimization of the Packaging System for Seamless

projects including the carbon reduction and pollution reduction upgrade of non-oriented silicon steel annealing furnaces Steel Pipes won the second prize of the Metallurgical Science and Technology Award.and the new construction of a 150-ton RH refining furnace. This is of great significance for developing the Company's

unique high-end products.Baogang's high wear-resistant and high-strength rare earth steel plate series have won the China

Steel Industry Award for Product Development and Market Expansion.Completion of the Carbon Reduction and Pollution Reduction Upgrade Successful development and mass production of rare earth oriented

Project for Non-oriented Silicon Steel Annealing Furnaces silicon steel

? Achievement application and transformation

By optimizing production processes and adjusting product structures Bao Gang United Steel continues to improve The first domestic hydrogen-blended long-distance pipeline steel was successfully delivered.product quality and reduce production costs focusing on key challenges to enhance the transformation of scientific

and technological achievements with a transformation rate of 68%. Achieve the first launch of 12 products successfully

develop 165 new varieties with multiple products filling regional gaps and develop 12 new steel materials for new energy ? Intellectual property protection

projects. Throughout the year 150 innovation achievements were granted with utility model patents 2 scientific researchachievements were awarded with industry and regional awards and the “Green and Low-Carbon New Technology and Bao Gang United Steel revised and issued the Patent Work Management Measures of Bao Gang United Steel in accordanceEquipment for Full Dry Method Waste Heat Recovery of Converter Gas” reached international leading levels. with the Patent Law of the People's Republic of China Implementation Rules of the Patent Law of the People's Republic of

China and Patent Work Management Measures of Baogang Group comprehensively stipulating management institutions

Key technological achievements in 2024 and responsibilities patent system application application implementation maintenance and protection. In external

cooperative development commissioned research and cooperative scientific research projects the cooperation agreement

? Achieve the first launch of L360MH hydrogen transmission pipeline steel in China with nearly 27000 must clearly define the ownership of patent application rights and patent rights for R&D results. At the same time

tons of hydrogen transmission pipeline steel supplied in bulk becoming the raw material supplier for

employees must comply with the agreement with the Company regarding confidential information and intellectual property.the construction of the first long-distance large-diameter high-pressure natural gas hydrogen-blended

pipeline in China. By the end of 2024 the Company owned 2316 valid patents including 447 invention patents.? Following the national energy structure adjustment and clean energy development 500MPa rare earth

wind power steel was applied in the Baiyun Obo 150MW green power project. Indicators and goals

? The independently developed zinc-aluminum-magnesium steel for solar thermal use successfully broke

the long-term dependence on imports for steel used in solar thermal power projects. It has been Bao Gang United Steel was rated as a high-tech enterprise. In 2024 the Company In 2024 the Company

successively applied in multiple projects in Xinjiang Qinghai and other regions. invested RMB 3.7 billion in technological innovation accounting for 5.46% of total invested

? Achieve the first launch of export hot-rolled IH rails with the highest hardness of 325HB in China. operating revenue achieving the set target; 892 patents were applied for including

? Independently design the composition system of H400 hypereutectoid steel rails and successfully 449 invention patents. RMB 3.7 billion

produce H400 hypereutectoid high-strength wear-resistant steel rails in bulk for the first time achieving By 2025 the Company's technology investment will not be less than 4.35% of total

in technological innovation

a historic breakthrough in the promotion and application in the high-end heavy-haul railway market. operating revenue.

78 792024 Sustainability Report ESG

ESG management ESG practices

Bao Gang United Steel has gradually achieved sustainable development through initiatives such as issuing social

Bao Gang United Steel integrates ESG philosophies into company management and operations organizes and builds an

responsibility/sustainability reports and conducting social responsibility/ESG training. Based on the continuous release of

ESG governance architecture solidly advances ESG-related work develops the Special Plan for Sustainable Development

social responsibility reports for five years the Company compiled and released the 2023 Annual Sustainability Report for the

Management Improvement of Bao Gang United Steel and gradually promotes the update and optimization of ESG

first time in 2024.management systems and ESG indicator systems laying a solid foundation for continuously improving sustainable

development management levels.Case: Preparation of 2024 Annual Sustainability Report of Bao Gang United Steel

ESG architecture

On December 24 2024 Bao Gang United Steel held a special training session on Environmental Social and

Bao Gang United Steel researches and builds an ESG governance architecture composed of three levels: the Board of Governance (ESG) and the kick-off meeting for the preparation of 2024 Annual Sustainability Report. The meeting

Directors the Board of Directors' Strategy and ESG Committee and the ESG working group. The Board of Directors is the provided in-depth explanations from six aspects including ESG trends and requirements interpretation of the

highest responsible institution for the Company's ESG management operation and information disclosure the Board of Guidelines for Sustainability Reports of Listed Companies and the conceptualization of 2024 Annual Report offering

Directors' Strategy and ESG Committee is responsible for formulating ESG goals and related systems and the ESG working insights for Bao Gang United Steel to enhance its ESG management level.group as the main coordination and execution institution coordinates and promotes the implementation of ESG-related

matters.? Review and approve the Company's ESG goals and strategic plans;

? Review and approve the Company's ESG governance architecture and key policies;

Responsibilities of the ? Review and approve the Company's ESG report;

Board of Directors ? 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 ESG

negative events.? Research and provide recommendations on the Company's ESG goals and plans ESG

governance architecture and policies ESG-related policies ESG reports and other

matters;

? Identify and monitor ESG-related risks and opportunities with significant impact on the

Responsibilities of the Company's business and guide management to take appropriate measures to address

Board of Directors' ESG risks and opportunities;

Strategy and ESG

? Organize and coordinate the supervision and inspection of the Company's ESG-related

Committee Bao Gang United Steel holds ESG Special Training and 2024 Sustainability Report Preparation Kick-off Meeting

policies management performance and target progress and provide corresponding

recommendations;

? Review and submit the Company's ESG-related reports to the Board of Directors;

? Review matters related to the Company's ESG etc.? Develop ESG-related policies and action plans aligned with the Company's strategy and

ESG goals; Stakeholder communication

? Manage ESG-related risks and matters in the Company's routine operations; Bao Gang United Steel places high importance on stakeholder management establishing regular communication

Responsibilities of ? Communicate with relevant departments and subsidiaries of the Company and coordinate channels with all parties to promptly understand the expectations and demands of the government regulatory agencies

ESG Working Group the implementation of ESG-related matters;

shareholders employees customers suppliers the public and the media. Through various measures the Company actively

? Collect organize and compile the Company's public disclosure on ESG-related responds and incorporates the concerns of all parties into its operations and strategic decision-making processes ensuring

performance;

stakeholders' rights to information participation expression and supervision.? Other ESG-related matters.

80 812024 Sustainability Report ESG

Stakeholder Expectations and needs Communication and response Substantive issue identification

? Improvement of company governance

In 2024 Bao Gang United Steel in accordance with the latest international disclosure standards such as the European

? Compliance management ? Strengthening compliance risk management

Sustainability Reporting Standards (ESRS) and the International Financial Reporting Standards - Sustainability Disclosure

Government ? Tax payment according to laws ? Consciously accept supervision

bodies and Standard No. 1 - General Requirements for Sustainability-related Financial Information Disclosure (IFRS S1) strictly

? Anti-corruption ? Actively fulfill tax obligations

supervisory adheres to the requirements of the Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 14 -

authorities ? Prevention and control of pollution ? Enhancing integrity construction Sustainability Report (Trial). The Company updates its assessment methods conducts a dual materiality assessment for the

? Work safety ? Compliance with laws and regulations first time integrates financial perspectives into the previous impact materiality assessment fully incorporates the views of

? Green production and operations multiple departments and stakeholders comprehensively analyzes the impact of ESG issues on the Company's finances

economy environment and society and focuses on responding to 12 financially material issues in this report.? Establish a related party transaction price adjustment

? Related transaction

mechanism

? Information disclosure transparency

Shareholders ? Information disclosure according to law

? Company governance

and investors ? Holding Board of Shareholders

? Investor relations management

? Establish multi-channel communication platforms ? Dual materiality assessment process

? Return on investment

? Participate in investor exchange activities

? Improve safeguard mechanisms

? Protection of rights and interests of

? Regulating work safety

employees

? Conduct regular employee training

? Occupational health and safety

Employee ? Employee satisfaction survey Step 1: Context analysis and issue identification

? Vocational training and development

? Provide assistance to employees in need

? Remuneration and welfare protection

? Congress of workers and employees Identify 28 potential material issues based on six factors forming an issue pool

? Employee caring

? Organize diverse cultural and sports activities

Step 2:

? Product innovation and R&D

? Application of intelligent technology 2-1 Impact materiality assessment: Impact level: stakeholder questionnaire survey; possibility:

? Product quality

? Strengthen product quality management system internal and external esg expert assessment

Customer ? Customer privacy protection

construction 2-2 Financial materiality assessment: Internal financial department experts assess the

? Customer service

? Standardize information security management financial materiality of each issue from two dimensions with multiple departments reviewing

? Customer satisfaction survey and confirming.? Fair competition Step 3: Dual materiality assessment analysiS

? Eliminate commercial bribery ? Improvement of supplier eligibility mechanism

Suppliers and

? Responsible procurement ? Strengthening supplier management Based on the assessment data from Step 2 form the 2024 materiality issue matrix to

partners

? Supplier management ? Participating in industry exchanges determine this year's materiality issues and their priorities.? Win-win cooperation

Step 4: Analysis results guide ESG disclosure and practice

? Public welfare and charity ? Organize and participate in public welfare activities

Public

? Prevention and control of pollution ? Green production and operations The Strategy and ESG Management Committee reviews and confirms the analysis results. The

Company uses the analysis results as a guide to carry out targeted disclosure and practice

? Enhance communication with the media

? Compliance management

improvements.Media ? Consciously accepting media supervision

? Information disclosure

? Improve the timeliness and quality of information

82 832024 Sustainability Report ESG

? Material issue database ESG honors

1.Environmental 2.Waste disposal 3.Pollutant emission 4.Utilization of water

compliance management resources

5.Combat with climate 6.Circular economy 7.Ecosystem and biodiversity 8.Energy utilization

change protection

9.Work safety 10.Innovation driving 11.Employees 12.Product and service safety

and quality

13.Supply chain security 14.Provision of high-end 15.Digital transformation 16.Assisting industry

products development

In 2024 Bao Gang United Steel's Wind ESG rating jumped

17.Rural revitalization 18.Social contribution 19.Equal treatment for small 20.Data Security and from “BB” to “A”

and medium enterprises Customer Privacy Protection

21.Compliance 22.Supply chain ESG 23.Stakeholder 24.Anti-commercial bribery

management and risk management communication and anti-corruption The 2023-2024 information disclosure work received

prevention the highest A-level (excellent) evaluation

from the Shanghai Stock Exchange

25.Anti-unfair competition 26.Leadership of Party 27.Due diligence 28.Technology ethics

building

Bao Gang United Steel was awarded as the“Excellent Practice Case of the Board of Directors for the Listed? ESG materiality issue matrix Company” and the “Best Practice of the Board of Directors’ Officefor the Listed Company in 2024”

by the Association for Public Companies

5

5

2

7

3

8

4

4

18

1310

161715

22

2612

9

3

28624

11

2114

21925

20

28 Bao Gang United Steel's Wind ESG rating upgraded to “A”

1

27

Financial Materiality

0

012345

8485

Impact Significance2024 Sustainability Report Future prospects

Future prospects

Build dreams together and embark on a new journey. 2025 is the final 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 will

remain confident emancipate our minds work hard take responsibility innovate boldly

deepen reforms to improve quality and efficiency forge ahead in the wave of creating first-

class enterprises carve out a new path for the high-quality development of Bao Gang United

Steel and create a new era of high-quality development for the enterprise!

86 872024 Sustainability Report Annex

Annex

Key performance Proportion of sites with % 100 100 100

environmental risk assessments

Proportion of sites certified

Indicator Unit 2022 2023 2024

with ISO14001 environmental % 100 100 100

Economic performance management system

RMB ten

Operating revenue 7217175.39 7056538.86 6808944.06 Employee training coverage rate on

thousand % 100 100 100environmental protection

RMB ten

Operating cost 6659094.58 6370751.60 6272606.36 Total energy consumption Tce coal 9211580.50 9846615.58 9431287.00

thousand

Total energy consumption per

Operation RMB ten Tce coal 127.63 139.54 138.51

Operating profits -101456.43 50870.36 9857.08 million revenue

performance thousand

RMB ten Ton of standard

Total profits -122286.62 42026.04 8583.63 Comprehensive energy

thousand coal / ton of 691.27 677.95 629.11consumption per ton of steels

crude steel

RMB ten

Net profits -144494.05 2960.42 2074.89

thousand Steam consumption Tce coal 764058 767121.24 867641.35

RMB ten Total fuel oil consumption Ton 41629.19 37669.76 38225.08

R&D investment 293104.98 376551.82 371955.43

thousand

Diesel oil consumption Ton 41547.75 37602.94 38156.71

Proportion of R&D investment in

%4.065.345.46

business revenue Gasoline consumption Ton 81.44 66.82 68.37

Number of R&D employees Person 1272 2032 1997 Coal consumption Ton 9592785.95 9912620.49 9782357.68

Energy

Innovation Proportion of R&D employees % 4.52 7.51 7.91 consumption Natural gas consumption m

3100151295.0083860824.0098269505.00

driving Total number of valid patents Item 1728 2015 2316 Hundred million

Total electricity consumption 92.94 100.26 86.53

Number of patents applied Item 745 774 892 kWh

Number of new patents granted Waste heat energy consumption Tce coal 764058 767121.24 867641.35

Item 449 440 324

annually

Waste heat and energy recovery

%89.7985.8685.15

Number of new invention patents utilization rate

Item 62 70 117

granted annually

Hundred million

Environmental performance Self-generated electricity 50.6 52.44 65.46kWh

Environmental investment RMB 100 million 46.6 56.6 37.71 Self-owned clean energy generation

Environmental MW 23.95 41.45 41.45

Number of environmental pollution Item 0 0 0 capacity (PV power generation)

compliance

management Environmental fines faced during RMB ten Annual self-owned clean energy Ten thousand

0002022.002646.002943.95

the fiscal year thousand generation (PV power generation) kWh

88 892024 Sustainability Report Annex

Ten thousand Total harmful waste generated per

Total water consumption 3 309742.45 295961.88 285034.53 Ton 3.978 1.70 3.347m million revenue

Total water consumption per million Ten thousand Hazardous wastes recycled Ten thousand t 26.05 9.14 13.11

3 4.2917 4.2083 4.1862revenue m

Comprehensive utilization rate of

%100100100

Ten thousand steel slag

Fresh water consumption 3 6511.00 6535.00 5801.73Utilization m Clean

of water Dust and sludge recovery utilization production % 100 100 100

resources Fresh water consumption per ton of Ten thousand rate

4.594.33.87

steel m3

Green coverage rate in plant area % 48.8 50.1 50.1

Recycled water consumption Ten thousand t 303231.45 289426.88 279232.80

Social performance

Water resource reuse rate % 97.9 97.79 97.96 Labour contract signing rate % 100 100 100

Waste water emission Ten thousand t 1183.34 642.29 314.72 Proportion of employees covered

%100100100

by collective agreements

Nitrogen oxide (NOX) emission Ton 14498.95 12018.92 9518.76

Social insurance coverage rate % 100 100 100

Sulphur dioxide (SO2) emission Ton 6731.83 5944.69 4003.8

Total number of employees Person 28547 27274 25432

Sulphur dioxide emission per ton of Kg/ton of

0.470.390.27

steel crude steel Number of part-time employees Person 0 0 0

Particulate emission Ton 8291.02 7250.31 5390.29 Number of employees from Person 2344 2228 2139

minority groups

Chemical oxygen demand (COD)

Ton 271.08 130.72 44.27

emission Turnover rate of employees % 0.22 0.37 0.35

Pollutant

emission

Ammonia nitrogen (NH3-N) Number of employees assisted Person 694 756 339

Ton 18 4.09 3.04

emission Protection

Number of employees assisted per

of rights and Person 0.00962 0.01071 0.00498

million revenue

Chemical oxygen demand (COD)

Kg/ton of steel 0.0191 0.0085 0.003 interests of

emission intensity employees Average days of paid leave per

Day 12 12 12

employee

Dust and particulate emissions per Kg/ton of

0.580.480.36

ton of steel crude steel

Number of recruited demobilized

Person 0 0 45

soldiers

Ammonia nitrogen (NH3-N)

Kg/ton of steel 0.0013 0.0003 0.0002

emission intensity Proportion of employees from

%--1.83

disabled group

Total waste generation Ten thousand t 1195.42 1063.80 1323.69

Number of discrimination and

General waste generation Ten thousand t 1166.81 1051.80 1300.90 Nos. 0 0 0harassment-related incidents

Waste Total non-harmful waste generated

Ton 161.67 149.05 191.06 Proportion of employees trained on

disposal per million revenue anti-discrimination and anti-human % 16 25 25

rights violations

General wastes recycled Ten thousand t 803.04 714.88 959.13

Number of child labor forced labor

Total hazardous wastes Ten thousand t 28.61 12 22.79 Nos. 0 0 0and human trafficking incidents

90 912024 Sustainability Report Annex

Employee training coverage rate % 100 100 100 Governance Performance

Proportion of independent directors % 35.71 45.45 36.36

Total training duration of employees Hour 4690799 6035979 5732354

Career Proportion of female directors % 7.14 9.09 18.18

development Per capita duration of employee

Hour 146 226 225

and training training Number of meetings of the Board Times 15 14 14

of Directors

Proportion of employees receiving

% 100 100 100 Member attendance rate for the

vocational and skills training % 100 100 100

Board of Directors

Occupational health check-up

% 100 100 100 Number of directors attending less

coverage rate Person 0 0 0than 75% of meetings

RMB ten Number of meetings of Audit

Work injury insurance investment 2221 2122 2274 Times 9 7 10

thousand CommitteeCompany

governance Number of meetings of Nomination

Number of person-times involved in

Occupational Person-time 118519 176720 186060 Remuneration and Assessment Times 2 4 1

training on work safety

health and Committee

work safety

Duration of training on work safety Hour 1201940 1967555 2083872 Proportion of women in senior

%16.672016.67

management

Average safety training duration per

Hour 43.32 71.6 78.3

employee Proportion of operation points that

have conducted a corruption risk % 100 100 100

Coverage rate of safety risk assessment

%100100100

protection training

Proportion of senior management

%0.0008200

holding shares

Quantity or percentage of products

that need to be withdrawn or

Product and % 0 0 0 Stock pledge ratio % 14.34 18.02 13.91

recalled due to health and safety

Service Safety

reasons

and Quality

Customer satisfaction % 97.91 96.87 97.17

Number of suppliers Nos. 1222 1462 1632

Number of suppliers in mainland

Nos. 1219 1459 1632

China

Number of suppliers audited and

Supply chain evaluated annually for corporate

security Nos. 1222 1462 1632social responsibility environmental

and other ESG-related aspects

Proportion of procurement orders

on the bidding and procurement % 100 100 100

platform

Total volunteer service hours Hour 13000 900 11730

Social

contribution Average volunteer service hours per

Hour 6.5 4.5 2.5

person

92 932024 Sustainability Report Annex

Index of indicators

Guidelines on Corporate Social Guidelines on Corporate Social

Global Reporting Initiative Global Reporting Initiative

Contents Responsibility Reporting for Chinese Contents Responsibility Reporting for Chinese

(GRI Standards) (GRI Standards)

Enterprises (CASS-ESG6.0) Enterprises (CASS-ESG6.0)

About this report GRI101 P1.1-1.2 Adhere to the

leadership of Party - G1.2.1-1.2.3

Address by chairman GRI102 P2.1 building

About Bao Gang United Steel GRI102 P3.1-3.4 Standardize corporate

Governance: GRI102 G1.1.1-1.1.2

governance

New glory - 2024 responsibility events - S2.1.13-2.1.14 Promote stability

like a rock

Comprehensive

Responsibility issue I: Strengthening the GRI102GRI205GRI206 G1.1.11G2.1.1-2.1.4G2.2.1-2.2.3S1.3.2deepening of reform

brand and forging new materials for major GRI203 S2.1.1-2.1.3S2.1.14

national equipment Innovation-driven

GRI203 S2.1.1-2.1.3S2.1.12-2.1.13

development

Responsibility issue II: Empowering

intelligence and activating a new engine GRI203 S2.1.3S2.1.13-2.1.14 ESG management GRI102GRI103 G1.1.1-1.1.7G1.1.9G1.1.13G1.3.1-1.3.2

for the industry

Future prospects - A1

Responsibility issue III: Rare treasure

house broad prospects for diversified GRI304 E3.1.4-3.1.5 Key performance - A2

development

Annex Index of indicators - A3

Strengthen

environmental GRI307 E2.4.1-2.4.4 Feedback - A6

management

Environment: Combat with climate E1.1.1-1.1.6E1.1.12E1.1.14-

GRI305

“Steel” flowers change 1.1.16E1.1.19

bloom with green

vitality Promote green E3.1.2E3.1.5E3.1.8-3.1.9E3.2.3-3.2.4

GRI302GRI303GRI305GRI306

production E2.1.1E2.1.4E2.1.6-2.1.8E2.2.5-2.2.7

Protect ecological

GRI304 E2.3.1-2.3.5

balance

Customer orientation

GRI416GRI417418 S3.3.1-3.3.6S3.4.3-3.4.4

quality first

Empower employee GRI401GRI402GRI403GRI404 S4.1.3S4.1.5S4.1.11-4.1.12S4.2.1-4.2.4

Society: growth GRI405 S4.2.6S4.3.1-4.3.3

Build dreams and

benefit the people Deepen industry

GRI204GRI308GRI414 S3.1.1-3.1.4

cooperation

Enhance people's

GRI415 S1.1.1-1.1.2S1.1.5-1.1.6S1.2.1S1.2.6

well-being

94 952024 Sustainability Report

Feedback

Dear reader

Thank you for reading the 2024 Sustainable Development Report of Inner Mongolia Bao Gang United Steel Co. Ltd. We

hope you can provide valuable opinions and suggestions by filling out the feedback form and choose any of the following

methods to send your feedback to us to strengthen communication and exchange with stakeholders and further enhance

the Company's ability and level of fulfilling social responsibilities.Securities Financing Department of Inner Mongolia Bao Gang United Steel Co. Ltd.Address: Room 204 Main Building Bao Gang United Steel Information

Building Hexi Industrial Zone Kundulun District Baotou City Inner Mongolia

Tel.: 0472 - 2669527 Email: glgfzqb@126.com

Post code: 014010 Fax: 0472 - 2669528

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