Sustainability Report 2025
Beijing Shougang Company Limited
Beijing Shougang Company Limited
Sustainability Report 2025
Beijing Shougang Company Limited Sustainability Report 2025About This Report 1
Sustainable Development Contents
Introduction Management
Chairman's Message 2 ESG Governance 14
About Us 4 Stakeholder Engagement 16
Major ESG Performance in 2025 7 Materiality Assessment 17
2025 Sustainability Recognitions 9
Focus 1: Green Low-Carbon Panorama 10
Focus 2: Flagship Products Panorama 12
Environment Social Governance Appendix
Anchoring the Dual Carbon Goals Gathering Innovative Momentum Solidifying the Governance Foundation XXXXXXXXXXXXXXXXX
Blueprinting a Green Future Building a Happy Ecosystem Together Safeguarding Sustainable Development
Climate Response 20 Innovation 46 Corporate Governance 92 Key Performance Indicators Form 106
Environmental Management 28 Intelligent Manufacturing 57 Information Disclosure 95 Content Index 110
Resource Utilization 34 Product Quality and Customer Service 63 Investor Relations Management 96 Interpretation 114
Circular Economy 40 Supply Chain Security 69 Shareholder Value Creation 97
Biodiversity Protection 43 Employee Development 74 Integrity Ecology 97
Occupational Health and Safety 82 Risk Management 100
Social Contributions 89 Data Security 104
2025 Shougang Co. Sustainability ReportAbout This Report Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange-Preparation of Sustainability Report the Global Reporting Initiative (GRI) Standards the Guidelines for Environmental
Social and Governance (ESG) Special Report of Iron and Steel Enterprises issued by China Iron and
Steel Association (CISA) and the China Corporate Sustainability Report Guidelines (CASS-ESG 6.0). It
Dear Readers also incorporates the United Nations 2030 Sustainable Development Goals (SDGs) FTSE Russell
The Shougang Co. Sustainability Report 2025 adheres to the principles of objectivity standardization ESG Ratings and S&P Global Corporate Sustainability Assessment (S&P CSA) requirements.transparency and comprehensiveness. It systematically discloses the commitments management
approaches initiatives and achievements of Beijing Shougang Co. Ltd. in social responsibility ?Report Preparation Process
environmental protection and corporate governance in 2025.Beijing Shougang Co. Ltd. This report has been compiled through the following processes: working group establishment
April 2026 data collection stakeholder interviews stakeholder questionnaire surveys framework
formulation report drafting report design deliberation at special meetings of the company's
leadership review by the Strategy Risk ESG and Compliance Management Committee of the
?Report Scope Board and approval by the Board of Directors.Report Compilation Working Group
This report covers Beijing Shougang Co. Ltd. and affiliated branches and subsidiaries consistent
with the consolidation scope of the 2025 Annual Report. Hereinafter "Beijing Shougang Co. Ltd." in Team Leader: Zhu Guosen; Deputy Team Leaders: Wang Lifeng Sun Maolin Qiao Yufei; Members:
the report is also referred to as "Shougang Co." "the company" or "we" for ease of expression and Hao Chengzhu Zhang Zhiwei Sang Juanxi and ESG coordinators from various departments
reading.The main products manufacturers of Shougang Co. : Shougang Qian'an Iron & Steel Co. Ltd. ?Report Acquisition
(Qiangang Co.) Shougang Jingtang United Iron & Steel Co. Ltd. (Jingtang Co.) Beijing Shougang The electronic version of this report can be downloaded from the official website of Shougang
Cold Rolling Co. Ltd. (Cold-R Co.) and Shougang Zhixin Electromagnetic Materials (Qian'an) Co. Co. (http://www.sggf.com.cn/).Ltd. (Shougang Zhixin).勇担使命引领未来
2024年度可持续发展报告 Sustainability Report 2025
Note: The Qianshun Base refers to the integrated production organization with research and 勇 Beijing Shougang Company Limited担 北京首钢股份有限公司勇 勇担 使担使 命使命命引引领引领领未未未来
development system formed by Qiangang Co. located in Qian-an Hebei Province and Cold-R Co. 来 来 北北 北 京京 首首京首钢
钢 钢股股股份份份有有有
located in Shunyi District Beijing. 限 限 限公 公 公司 司 司年年度度年可可度持持可续续发发持续展展报报北京首钢股份有限公司告告勇担使命引领未来发展报
2022年度可持续发展报告北京首勇钢北股担份京使有首限钢命公股司份引有领限公未司来告
?Reporting Period 2023年度北2可0京持2首续4钢发年展股度报份告可有持限公续司发展报告 北京首钢股份有限公司2022年度可持续发展报告 2023年度可持续发展报告 Beijing Shougang Company Limited
Sustainability Report 2025
The report covers the period from January 1 2025 to December 31 2025 (referred to as the
"Reporting Period") with some of the information retrospective to previous years and including ?Text Language
the first quarter of 2026. This report is available in both Chinese and English. If there is any discrepancy between the two
?Data Sources and Reliability Assurance languages please refer to the Chinese version.The information and data disclosed in this report originate from the company's documents and
statistical data. The company guarantees that the contents of this report are free from any false If you have any questions about this report please contact us by phone or email. Our contact information is as follows:
records or misleading statements and takes responsibility for the authenticity accuracy and Board Secretary Office of Beijing Shougang Co. Ltd.completeness of the contents. Contact Add: Building 3 No. 6 Courtyard South Qunminghu Road Shougang Park Shijingshan
? District BeijingPreparation Basis Tel: +86-010-88293727????E-mail: sggf@sgqg.com
This report is primarily prepared with reference to the Self-Regulatory Guidelines No. 17 for Postcode: 100043??????Fax: +86-010-88292055
Companies Listed on Shenzhen Stock Exchange-Sustainability Report (For Trial Implementation)
2025 Shougang Co. Sustainability Report 1
Beijing Shougang Company Limited Sustainability Report 2025
2024
2023
2022Chairman's Message
2025 marks the concluding year of the 14th Five-Year Plan and a pivotal year for laying a solid
foundation for a successful start to the 15th Five-Year Plan. Acting as a bridge between the past
and future this year holds extraordinary significance. Shougang Co. persists in deeply integrating
ESG concepts into the entire process of corporate strategy and business management. Centered
around the development of new quality productive forces we remain committed to advancing with
innovation pursuing green development and striving toward excellence. We are building a solid
foundation for technological leadership green and low-carbon development corporate governance
and a talent-driven enterprise strategy to achieve high-quality sustainable development.Forging a Foundation of Technology Leadership
Technological innovation is the most active element in driving the development of productive
forces and has become a new engine for industrial growth. The company always insists on
promoting innovation as its primary competitiveness driving transformation in quality efficiency
and momentum of business development through technological breakthroughs. The company's
proportion of R&D investment to operating revenue remains above 4% annually focusing on
key areas such as new materials new processes green and low-carbon development and smart
manufacturing to lead the industrial chain toward high-end intelligent green and integrated
development. We actively engage in both independent and collaborative research participating in
national key R&D projects to provide domestic material supply and technical protection for major
national engineering projects.Deepening the Foundation for Green and Low-Carbon Development
Actively taking climate response actions and implementing green manufacturing and low-carbon
routes are the top priorities for the sustainable development of an enterprise. In 2025 the company
implemented the Low-carbon Action Plan and advanced the near-zero carbon emission EAF high-
Zhu Guosen quality steel production line project. Our typical product categories have achieved full coverage of Environmental Product Declarations (EPD). We pioneered the launch of enterprise standards and
a pricing system for low-carbon steel products. We promoted the construction of a "Zero-Waste
Group" significantly improving the resource utilization levels of general industrial solid waste and
hazardous waste. The company was honored as a Level-A Leader Enterprise in Environmental
Performance within the steel industry of Hebei Province.
2Fortifying the Foundation for Corporate Governance systems and procedures and strengthening risk control to safeguard the life and
Continuously improving and optimizing the management and control system and health of employees. We have obtained certifications for the Occupational Health and
comprehensively promoting the modernization of the corporate governance system Safety Management System and the HSE Management System. In 2025 the company
and governance capability are the cornerstones of high-quality development. In 2025 the maintained zero production safety accidents of general grade or higher achieved all
company further improved corporate governance system revised the safety targets and saw significant achievements in the innovation and transformation Articles of Association
and completed the reform of the Supervisory Committee. We performed information of safety management practices.disclosure in accordance with laws and regulations obtaining an "A" rating in the Shenzhen
Stock Exchange 2024-2025 Listed Company Information Disclosure Assessment. The Solidifying the Foundation of a Stable and Robust Industrial
company took multiple measures to enhance its market value by organizing market value Chain
management seminars releasing the Valuation Enhancement Plan and the Shareholder Return The security and stability of the industrial chain are essential guarantees for
Plan for the Next Three Years (2026-2028) conducting share buybacks and engaging in high- sustainable development. The company attaches great importance to industrial chain
frequency investor communications through multiple channels. management and actively promotes collaborative construction with suppliers and
customers to create a green ecosystem. We advanced carbon emission reduction
Strengthening the Foundation for a Talent-driven Enterprise efforts among key suppliers driving 38 suppliers to conduct carbon footprint
certification for key materials and established a primary data factor database for
"Success is built on talent and business thrives through talent." Talent is a vital upstream materials. We built a "production-consumption-regeneration" closed-loop
force for the sustainable development of an enterprise. Adhering to the philosophy system with Zhongshan Green Guard and released a 40% traceable recycled material
that talent is the primary resource we have strengthened our talent supply chain low-carbon project. We signed a "Green Steel" strategic cooperation memorandum
management system to build a talent highland for Shougang Co. based on respecting with FAW-Volkswagen and strategic cooperation agreements with Geely Group TBEA
focusing on and developing talent. We advanced the cultivation of "Voyage" high- and Inovance to carry out deep cooperation in green and low-carbon transformation
potential talents and reinforced key training programs such as the Technological smart supply chain construction new product development humanoid robots and
Innovation Youth Training Camp Leadership Grand Lectures and Professor Forums. the low-altitude economy.We improved long-term incentive mechanisms and implemented stock option and
restricted stock incentive plans with 501 core technical and management personnel No dream is too far to reach and though the road ahead is long we stride forward with
participating providing strong support for the talent-driven enterprise strategy and confidence. The company will always firmly grasp the requirements for developing new
promoting the company's long-term steady development. quality productive forces. With courage vitality and unremitting drive we will persist
in governance modernization green and low-carbon development strengthening
Consolidating the Foundation of Intrinsic Safety the enterprise through technology and talent ensuring intrinsic safety and fostering
Safety is the red line and bottom line of enterprise development. The company insists upstream and downstream synergy. On this new journey of a new era we shall write a
on the integrated management of production safety and occupational health fully new chapter of high-quality sustainable development for Shougang Co.implementing the all-employees production safety responsibility system improving
3About Us
Company Mission
Beijing Shougang Co. Ltd. was listed on Shenzhen Stock Exchange in
December 1999 (Stock Code: 000959) controlled by Shougang Group. People-Oriented Strengthen the enterprise
to serve the country
The company f irmly upholds its strategic commitment to "Green
Manufacturing Smart Manufacturing Premium Manufacturing Lean
Manufacturing and Precision Services". Driven by innovation we prioritize
technological innovation as our primary competitive advantage striving to Company Vision
build a steel listed company with world-class competitiveness and influence.Adhering to the "Manufacturing + Services" competitive edge we persistently
optimize our product mix production line structure and customer portfolio To build a steel listed company with world-class
and advance the R&D and production of high-end products particularly competitiveness and influence
automotive sheets electrical steel tinplates (chrome-plates) and plates
to ensure the independent material supply and technical security of major
national projects.Core Values
Development Strategy
Focusing on the overall goal of "Making the steel industry better and Integrity Collaboration Innovation Sharing
stronger" Shougang Co. adheres to the development directions of "High-
end High-efficiency Intelligent and Green" and positions as a "World-class
high-end materials service provider". With the strategic focus of promoting
and implementing the development goals of the iron and steel industry with
strong profitability strong innovation ability excellent asset quality excellent
operation efficiency excellent energy conservation and environmental
protection we firmly promote the strategy of "green manufacturing intelligent
manufacturing high-quality manufacturing lean manufacturing and precise
service" adhere to the two-wheel drive of "capital+operation" and promote Customer Innovation Responsibility Lean Team Community
Philosophy Philosophy Philosophy Philosophy Philosophy Philosophy
the high-quality development of the company. The company continues to
promote the development of high-end products focusing on automotive sheets
electrical steel tinplates (chrome-plates) and plates. Efforts are consistently
made to strengthen the five core advantages of product quality cost service Customer first Promote Safety first Rigorous and Talent as the Chasing dreams
and technology. The company aims to continuously improve the manufacturing Integrity first technological Environmental meticulous foundation together
and service level and operational efficiency building a batch portfolio of Excellence in innovation priority Benchmarking Loyalty and Co-building
detail Go far to become Dedication world-class commitment and sharing
strategic products and a high-quality customer matrix with international with innovation Shougang's Accountability Pursuing Unity and striving Happiness and
competitive advantages and strives to build a steel listed company with world- primary perfection harmony
class competitiveness and influence. competitiveness
4 2025 Shougang Co. Sustainability ReportCompany History
1999.12
Successfully listed on
Shenzhen Stock Exchange
becoming the first listed 2014.04
company in China to introduce The mainstream process
2020.06
strategic investors the first facilities were transferred Acquired 51% equity of
listed company to issue shares to Qiangang Co. increasing Beijing Shougang Steel
through a combination of the total share capital to Trading Investment
online and offline distribution 5.289 billion shares. Management Co. Ltd.and the first listed company to (Steel Trading) from 2022.06
conduct public roadshows. Shougang Group. Achieved 100% equity
2018.03 ownership in both
2005.11 Shougang Zhixin Qian'an Steel Trading and
Completed the split- Electromagnetic Materials
Jingtang Co.share structure reform. Co. Ltd. was established.
2003.122021.04
I ss u e d R M B 2 b i l l i o n 2016.04 Beijing Jingtou Investment 2024.03
conver t ib le corporate A c q u i re d 5 1 % Holding Co. Ltd. and Beijing Shougang Zhixin
bonds for the construction equity of Jingtang Jingguorui State-owned Electromagnetic Materials
of the Shunyi cold-rolled 2008.08 Co. 2019.11 Enterprise Reform and (Qian'an) Co. Ltd. was
steel sheet production line. Beij ing Shougang Baowu Group became Development Fund (Limited established completing its
Cold Rolling Co. Ltd. the company's strategic Partnership) became strategic joint-stock restructuring.was established. shareholder. shareholders of the company
through restructuring.
2021.07
Acquired 19.1823% equity of
Jingtang Co.
2025 Shougang Co. Sustainability Report 5Shougang Co. is leading the development of a high-end product portfolio through focusing on 8 key product categories: automotive sheets electrical
steels tinplates (chrome-plates) plates pickled sheets hot-rolled sheets household appliance steels and specialty steels and galvanized sheets.Automotive Electrical Tinplates
Sheets steels (Chrome-plates) Plates
Structural parts and outer panels for Transformer motor and generator Beverage cans powdered milk cans Shipbuilding and offshore engineering
passenger vehicles and commercial vehicles and compressor cores etc. and food cans etc. construction & bridges energy
equipment etc.Pickled Sheets Hot-rolled Household Appliance Steels Galvanized Sheets and Specialty Steels Sheets
Automotive parts home appliance Automotive structure engineering machinery Refrigerator air conditioner and Solar racking system highway
compressors etc. long-distance pipeline container etc. washing machine manufacturing barrier
6 2025 Shougang Co. Sustainability ReportMajor ESG Performance in 2025
Proportion of operations certified by the
Environmental pollution incidents (Item) energy management system (%) Waste recycled (Million tonnes)
202502025100202513.26
202402024100202413.44
202302023100202313.05
Environmental protection performance Clean energy consumption (Tonne of standard
evaluation coal) Comprehensive utilization rate of solid waste(%)
2025 A 2025 251095 2025 100
2024 A 2024 159551 2024 100
2023 A 2023 114459 2023 100
Proportion of operations certified by the Annual generation of self-provided clean energy
environmental management system (%) (photovoltaic power generation) (MWh) Annual fresh water consumption (1000 tonnes)
2025100202544828202557033
2024100202418220202464922
2023100202315320202368787
2025 Shougang Co. Sustainability Report 7Major ESG Performance in 2025
Proportion of R&D investment to operating
Water recycled rate (%) Total investment in work safety (RMB million) revenue (%)
202598.80202515220254.66
202498.79202415520244.51
202398.73202316720234.41
Number of work safety accidents of general
Total number of employees (Person) grade or higher (NOS) Number of valid patents (PCS)
2025182932025020254261
2024177622024020243924
2023182262023020233570
Training coverage (%) Safety training hours (Hour) Proportion of female directors (%)
202510020251169451202544.44
202410020241129329202412.5
2023100202392836220230
8 2025 Shougang Co. Sustainability Report2025 Sustainability Recognitions ESG Ratings
In 2025 the S&P Global CSA (Corporate Sustainability Assessment) scores
ESG Recognitions ESG scores FTSE Russell ESG ratings and Refinitiv rating results have been
released successively. Shougang Co.'s ESG ratings from international rating
agencies achieved a significant leap: the S&P Global ESG Score rose to 45
the FTSE Russell ESG Rating improved to 3 and the Refinitiv ESG Rating was
证 书 upgraded to an A-grade. Through systematic promotion enhancement and
long-term practice in the fields of environmental social and governance (ESG)
北京首钢股份有限公司（000959.SZ）入选 the company has garnered extensive recognition from mainstream global中国上市公司协会2025年上市公司可持续发展最佳实践案例。
特发此证，以资鼓励！ institutions.中国上市公司协会 FTSE Russell ESG Refinitiv ESG二零二五年十一月
3 A-
The 3rd Guoxin Cup·ESG Selected in the 2025 China Selected in the 2025 Listed Selected in the "2025
S&P Global ESG
Golden Bull Award Top 100 Corporate ESG 100 Index Companies Sustainable Excellent Cases of 45
List Development Best Practice Enterprise Green
Cases by the China and Low-Carbon
Association for Public Development" Sino-Securities Index ESG Wind ESG
Companies AAA (The Highest) AA
华证ESG荣誉证书 华证ESG荣誉证书 China Steel Economic China Metallurgical Industry
Development Research Planning and Research
荣获2025年A股上市公司原材料行业ESG绩效 荣获2025年A股上市公司ESG评级最佳进步 Institute (CSDRI) Steel Institute Domestic Steel
TOP20 TOP100 Enterprise ESG Rating Enterprise ESG Rating
AAA (The Highest) AAA (The Highest)发证日期颁发机构发证日期颁发机构
The Best Social The 19th China 2025 TOP 20 ESG Performance 2025 Top 100 ESG Rating Progress Jingtang Co. Received Grade B in CDP Rating
Responsibility Award in the Listed Companies in Raw Material Industry among Awards among A-share Listed
2025 Corporate ESG "Golden ESG Top 100 Award A-share Listed Companies Companies In 2025 Jingtang Co. continued to deepen low-carbon operation
Responsibility Award" management and actively responded to challenges related to global
climate change. It has achieved remarkable results in promoting low-
carbon transition strengthening climate governance and continuously
The Innovation-Driven Leading High-Quality Development — Social Responsibility of State-owned Steel Listed Companies in improving the transparency of environmental information disclosure.Developing New Quality Productive Forces was awarded the 2025 Beijing Corporate Social Responsibility Excellent Case For its first participation in the CDP (Carbon Disclosure Project) an
The Building a Full-Chain Labor Protection System and Cultivating a Development Ecosystem for New-Era Industrial Workers was environmental information disclosure system it was awarded a B
recognized as an "Excellent ESG Case" in the Blue Book of ESG for Beijing Municipal State-owned Enterprises (2025) rating ranking among the leading positions in major domestic steel
The ESG Governance Practices for Win-Win Harmony was selected for inclusion in the Blue Book on Social Responsibility of the enterprises.Steel Industry (2025)
2025 Shougang Co. Sustainability Report 9Strategic Guidance Governance Foundation
Green Low-Carbon
In 2023 the company released the Shougang Co. Low-Carbon Action Plan explicitly defining
Panorama the overall goals of "Carbon Peaking by 2025 and Carbon Neutrality between 2050 and 2060."
It systematically planned four basic decarbonization routes: carbon emission reduction from
source carbon emission reduction by improving energy efficiency collaborative carbon
emission reduction and social carbon emission reduction. To ensure efficient implementation
Upholding the development philosophy that "lucid waters and lush of the strategy the company established a governance structure consisting of the Green
mountains are invaluable assets" Shougang Co. deeply integrates Manufacturing Committee (overall planning and decision-making) the Green Manufacturing
green and low-carbon principles into its core strategy and the entire Committee (decomposition and promotion) the Low-Carbon Management Center (supervision
operational process. The company has constructed a panoramic low- and inspection) and various subsidiaries (concrete execution). Through the Climate Governance
carbon development system covering strategic planning technological Management System and other regulations a low-carbon management system with clear
innovation product application and smart management. Shougang rights responsibilities and closed-loop management has been formed.Co. is dedicated to becoming a technological pioneer and a benchmark
model for the global steel industry's green and low-carbon transition
providing the 'Shougang Paradigm' for the high-quality development of Green
the steel industry.Technological Breakthroughs Extreme Energy Efficiency Low-Carbon
Driven by technological innovation to achieve deep decarbonization the company has
achieved key technical breakthroughs in both blast furnace-basic oxygen furnace (BF-
BOF) and electric arc furnace (EAF) route steelmaking. We continue to tackle processes
such as high-proportion pellet ironmaking in blast furnace hydrogen-rich injection in blast
furnace high oxygen-rich smelting in large blast furnace and high scrap ratio steelmaking
in converter. In 2025 Jingtang Co. successfully conducted an industrial trial of 70% high-
proportion pellet in blast furnace the proportion of pellet ore charged into the blast furnace
is stabilized at over 50%. Simultaneously the company has made forward-looking layouts by
launching the construction of the world's first near-zero carbon emission EAF high-quality
steel production line deeply coupled with long and short processes. It is expected that a
carbon reduction of more than 60% per tonne of steel can be achieved after the project is
put into production in 2026 setting a new benchmark for low-carbon smelting in the steel
industry.
10
Focus 1Products as the Link Green Ecology
Dedicated to integrating low-carbon value into our products the company has built
a green product matrix centered on automotive sheets electrical steel tinplates
(chrome-plates) and plates. Automotive sheets achieved over 30% carbon reduction
through innovative processes; electrical steel empowers new energy and ultra-high
voltage (UHV) transmission/distribution; tinplates reduce carbon emissions by over
30% through the use of green electricity; and plates support lightweighting of the
equipment manufacturing industry and the utilization of green energy. In 2025 the
company pioneered the release of the Green Low-Carbon Cold Rolled and Hot-Dip
Galvanized Steel Sheet and Strip enterprise standard series and the "SOGREECO" green
and low-carbon product trademark providing standardized support for downstream
green procurement.Green
Low-Carbon
Digital Empowerment System Certification
The company has independently developed and launched a Smart Carbon Management
Platform centered on Life Cycle Assessment (LCA). This platform enables precise
accounting and holistic management of both organizational carbon footprint and
product carbon emissions. The LCA module has successfully obtained a Verification
Statement issued by DNV a globally recognized third-party certification body. In 2025
the company achieved full coverage of Environmental Product Declarations (EPD)
for typical product categories. Our hot-rolled products received low-carbon emission
steel certificates and 23 products completed carbon footprint certifications elevating
carbon asset management capabilities to a new level.
11Flagship Products Panorama
Electrical Steel
Persisting in innovation-driven development Shougang Co. delves deeply in the field The "High-End Core" Empowering Energy Transformation and
of high-end steel manufacturing successfully forging four strategic flagship products: Intelligent Manufacturing
automotive sheets electrical steel tinplates (chrome-plates) and plates. With leading The electrical steel portfolio includes a matrix of over 160 high-end
technology excellent quality and significant green benefits many of these products products covering strategic emerging fields such as new energy
have not only filled domestic gaps and joined the ranks of the international advanced intelligent manufacturing and UHV transmission/distribution boasting
tier but are also widely applied in major national projects and high-end manufacturing 16 distinct global debut products.deeply empowering the green upgrade of downstream industrial chains. Electrical steel for traction motor of new energy vehicle now supplies all
leading domestic and international new energy vehicle manufacturers;
domestically one in every three new energy vehicles is equipped with
a "Shougang Core."
Grain-oriented electrical steel is successfully applied in major national
Automotive Sheets projects like the Baihetan and Wudongde Hydropower Stations ranking among global leaders in transformer material supply.Technology Driving Automotive Lightweighting and Greening Non-oriented electrical steel maintains a technological edge in the
high-efficiency variable frequency field.The company's automotive steel products are committed to providing
high-end material solutions for vehicle manufacturing. Relying on the In 2025 the company launched two global debut high-performance non-
complete set of technologies for high-strength outer panel products oriented electrical steel products providing key material empowerment
represented by UF340 to DP(DH)500 the production technologies for high-quality main drive motors and humanoid robots continuing to
for ultra-high-strength cold-forming steels ranging from TBF980 define industry heights through material innovation.to 1.5 GPa the integrated door ring solution for hot-stamping high-
strength steels from 500 MPa to 2.4 GPa as well as pickled and The ultra-high-efficiency special-purpose ultra-thin gauge non-
coated products at the 800 MPa grade we have established a full- oriented electrical steel features extremely low high-frequency
range product supply capability covering outer panels inner panels iron loss. It meets future demands for eVTOLs (electric vertical
structural parts and chassis components. We help achieve vehicle take-off and landing aircraft) drones and ultra-high-speed micro-
lightweighting with ultra-high-strength body materials enhance motors. It has been batch-applied in major national projects like the
vehicle service performance through excellent corrosion resistance Fourth Generation Synchrotron Radiation Source and the Spallation
(zinc-magnesium coated sheets hot-stamping pure zinc products Neutron Source .etc.) and support industry-wide emission reduction via large- The global debut of electrical steel exclusively for humanoid robots
scale carbon reduction processes. This drives the transformation features a 0.1mm ultra-thin gauge and advanced self-bonding
of automotive steel applications from following to leading providing technology. This significantly improves space utilization and energy
advanced material support for the high-end development and green efficiency increasing joint motor output torque by approximately 1.6%
low-carbon transition of the automotive industry. and reducing iron loss by 27%.
1 T he Fourth Generation Synchrotron Radiation Source has the lowest emittance and highest brightness in the world.
2 The Spallation Neutron Source is hailed as a "super microscope" for exploring the microscopic structure of materials.
12
Focus 2Tinplates (Chrome-plates) Deep Empowerment Linking the Future
A Technological Benchmark for Ultra-Thinning and Green Canning
The four flagship products are not only the crystallization of hardcore technical
As the only domestic enterprise with long-process capabilities covering strength but also the bond for collaborative development of the industrial chain.both continuous annealing and batch annealing for full varieties of tinplate / Deeply anchored in national development strategies our product portfolio spans
chrome-plated plate the company takes the leading position in ultra-thin across traditional high-end manufacturing as well as strategic emerging and
rolling technology for tinplate with secondary cold rolling reaching a minimum future industries including new energy vehicles civil aviation and humanoid
thickness of 0.07mm. Its ultra-thin "Cicada Wing Steel" is innovatively applied robotics. The company actively builds industry exchange platforms—hosting
in high-end cultural and creative products. The low-carbon emission tinplate events such as the "Automotive Steel & Green Low-Carbon Technology Forum"
products achieve a carbon reduction of over 30% with 26 low-carbon grades now and the " Plate Energy Steel Seminar"—and actively participates in formulating
capable of mass supply. In 2025 our food-grade tinplate was selected as one of standards. By continuously outputting technologies standards and concepts
the "Top 10 Flagship Products" in the Hebei steel industry. Shougang Co. leads the upstream and downstream industries collaboration
towards a high-end green future.Plates
The "Steel Backbone" Supporting Major Projects and High-End Equipment
The company's plate products integrate core key technologies such as clean
steel steelmaking new-generation TMCP control and high-strength and
toughness welding. They serve the construction of "national key projects" and
the import substitution of "high-end equipment" and are the core material
for projects such as the West-to-East Gas Pipeline Sichuan-to-East Gas
Transmission Beihai LNG Terminal as well as the Blue Whale No.1 ultra-
deepwater drilling platform and 400000-tonne ultra-large ore carrier. In
the field of green energy we provide high-performance fatigue-resistant
and easy-to-weld plate products for large-scale hydropower and wind power
projects strongly supporting the construction of the national green energy
system.
13Sustainable Development Management ESG Management Measures
Shougang Co. effectively manages ESG risks and continuously enhances its ESG management level
Shougang Co. deeply integrates ESG concepts into the company's development strategy through measures such as formulating ESG-related policies and conducting ESG training.continuously enhances the effectiveness of sustainability development governance and promotes
collaborative participation by stakeholders. By closely following policy guidance and industry
development trends the company comprehensively advances green low-carbon and high-quality ESG Risk ESG Work Systems
development contributing to the construction of a "Beautiful China" and laying a solid foundation Management
for building a listed steel company with world-class competitiveness and influence.ESG
ESG Governance Management Measures
Shougang Co. always upholds its corporate mission combined with the characteristics of the
Engagement in
industry proactively undertakes public responsibilities standardizes corporate ethical behavior ESG Training ESG Standards
and actively engages in social welfare activities to effectively fulfill its social responsibilities.Formulation
The company is fully committed to becoming a technological pioneer in green and low-carbon
development of the global steel industry and serving as a demonstrator of ultra-low emissions a
ESG Work Systems
leader of low carbon development a promoter of industrial collaboration a pioneer of ecological
civilization construction and a builder of a better society. The company has formulated the ESG Work Promotion Program the ESG Work Management System
ESG Governance Structure and the Work Regulations of the Strategy Risk ESG and Compliance Management Committee of the
Board of Directors clarifying the ESG management responsibilities of the specialized committee
The company has systematically planned its ESG management work and established a robust ESG and various departments. A regular work reporting mechanism has been established to report
governance structure which includes the Board of Directors Strategy Risk ESG and Compliance periodically to the company's ESG Working Group on ESG phased work and management
Management Committee of the Board and ESG Working Group. enhancement plans in the form of Special Report on ESG Work.The highest decision-making body for ESG management. The Board of Directors is ESG Risk Management
Board of Directors responsible for reviewing and approving the company's ESG objectives and plans
issuing the ESG report and providing overall supervision of ESG initiatives. The company integrates ESG-related risks including climate change into its comprehensive
risk management system conducts regular risk identification and assessment and formulates
Provides decision-making consulting support for the Board of Directors in ESG corresponding risk response measures to ensure accurate identification scientific evaluation and
Strategy Risk ESG and
Compliance Management management conducts research and puts forward suggestions on the company's effective response to potential risks and negative impacts related to sustainability in business activities.Committee ESG goals and plans ESG reports and other matters. ESG risk management is coordinated by the Strategy Risk ESG and Compliance Management
Committee of the Board covering core sustainability areas such as environmental compliance climate
The ESG Working Group is the executive body of the ESG management work headed change product quality employee rights and business ethics. Through supplier due diligence risk
by the general manager and composed of members including the leadership team
of the company and is responsible for the overall coordination and implementation assessments and internal compliance audits the company identifies ESG risks in business activities
of the ESG management work. It is responsible for promoting the integration of ESG and formulates targeted response measures to ensure the effectiveness of the company's sustainability.The ESG Working Group concepts and the overall development strategy of the listed company and integration
with operation and management executing ESG-related resolutions of the Board For details on climate change environment and energy risk management please refer to the "Climate
of Directors advancing ESG work hearing ESG work reports enhancing ESG Response" "Environmental Management" and "Energy Utilization" sections in the Environment
governance capabilities and promoting the improvement of the ESG work system.chapter of this report. For details on technological innovation employee development and safety risk
All Business and Functional Implement specific ESG-related work according to established management management please refer to the "Innovation" "Employee Development" and "Occupational Health and
Departments mechanisms and report regularly to the ESG working group. Safety" sections in the Social chapter of this report.
14 2025 Shougang Co. Sustainability Report
Decision- Management
making Level Level Execution LevelESG Training Engagement in ESG Standards Formulation
The company actively participates in ESG management training and seminars organized by industry As the lead drafting unit the company engaged in the formulation of two group standards of the
associations and ESG professional institutions covering ESG management responsible business CISA: Guidelines for Environmental Social and Governance (ESG) Special Reports of Iron and Steel
conduct human rights and carbon management. In addition we have organized multiple training Enterprises (T/CISA 522-2025) and Guidelines for Environmental Social and Governance (ESG)
sessions—both online and offline—for our employees and suppliers focusing on compliance Assessment of Iron and Steel Enterprises (T/CISA 521-2025) providing support for the standardized
management green and low-carbon practices safety management and other ESG-related topics. construction of ESG in the industry.In 2025 the company organized 4 internal ESG training sessions to strengthen the importance
attached to ESG by all employees simultaneously enhance the performance capabilities of relevant
positions and consolidate the foundation for ESG management practices. ESG Performance Evaluation and Management
The annual performance evaluation of the General Manager and other senior executives comprises
Leadership Grand Lecture: Cutting-Edge ESG Training Session three parts: indicator assessment key task assessment and general assessment. The General
Manager is evaluated on all indicators to ensure a comprehensive assessment of performance
In December 2025 Shougang Co. held a Leadership while the remaining senior executives are assessed on indicators aligned with their respective
Grand Lecture inviting experts to lecture on "Global responsibilities to ensure targeted and effective evaluations. Moreover executive evaluation metrics
ESG Progress and Corporate Response." The training are closely linked to economic benefits safety production environmental protection corporate
combined a global perspective with China's reality governance technological innovation supply chain management and other ESG performance
systematically interpreting global and Chinese ESG indicators.policies ESG investment and information disclosure
global ESG standardization ESG and high-quality
corporate development and corporate ESG risks and compliance. It aimed to help leaders
at all levels of the company seize opportunities brought by the ESG transformation and
build an ESG management system with Chinese characteristics. This training covered
Shougang Co. and its subsidiaries via "on-site + video" format.Special ESG Training for Marketing Personnel
In March 2025 to enhance the marketing team's understanding of sustainability
development trends and their ability to translate ESG value into advantages in market
communication the company organized special ESG training for marketing personnel.The training systematically interpreted core ESG concepts domestic and international
development trends and information disclosure requirements. Combined with the
characteristics of the steel industry it focused on how ESG affects downstream customer
choices and shapes green brands. Through the training marketing personnel deepened
their understanding of the company's green and low-carbon products and responsible
supply chain management practices laying a foundation for effectively conveying ESG
value in customer service and market promotion.
2025 Shougang Co. Sustainability Report 15Stakeholder Engagement
Effective stakeholder communication serves as an important basis for Shougang Co. in conducting goal management and creating shared value. Upholding the principles of integrity interaction equality
and transparency the company has established various channels for routine exchanges and targeted communications with its stakeholders. By comprehensively collecting stakeholders' demands and
expectations employing scientific analysis and research methods implementing efficient execution and monitoring mechanisms and continuously adopting improvement and collaborative measures the
company has formed a closed-loop management system for stakeholder communication. This ensures that all stakeholders can continuously obtain timely and accurate information achieving regularized
and transparent communication. At the same time the company integrates stakeholder expectations and demands into strategic planning and daily operations and reviews the importance of various topics in
the company's operations and development.In 2025 the company actively engaged in communication with its stakeholders promptly refined its communication mechanisms and continuously enhanced the effectiveness and timeliness of stakeholder
interactions.Stakeholders Main Focus Areas Communication and Response Stakeholders Main Focus Areas Communication and Response
Shareholder Value Creation
Equal Treatment of SMEs
Corporate Governance Shareholders' General Meeting Supplier Conferences
Supply Chain Security
ESG Management Performance Briefings On-site Investigation
Anti-Commercial Bribery and Anti-
Shareholders and Anti-Commercial Bribery and Anti- On-Site Investigation
Industry Benchmarking
Corruption Exchange and Visit
Investors Corruption Investor Communications (Interactive Easy etc.) Suppliers Fair Competition Risk Management Information Disclosure Conflict Minerals Claim
Due Diligence
Information Disclosure Issuance of Integrity Notices
Ethics of Science and Technology
Employee-Friendly Workplace Employee Representative Congress and Symposiums Climate Response Daily Communication and Reporting
Democratic Management Various Employee Activities On-Site Surveys
Employee Compensation and Meetings and Training
Pollutant Discharge Information Disclosure
Benefits Employee Performance Assessment
Waste Disposal
Environmental Compliance Environmental Data Networked with
Occupational Health and Safety Employee Mailbox Government Departments for Real-Time
Employees Employee Career Development Shougang Sincere Friend APP Shougang Tong APP Government and
Management Transmission
and Training Internal Publications Notice Boards Regulatory Agencies
Ecosystem and Biodiversity
Protection Environmental Responsibility Reports
Anti-Commercial Bribery and Anti- Assistance for Employees in Difficulties On-Site Visits and Condolences Energy Utilization
Compliance with Laws Regulations and
Corruption Policy Learning Employee Satisfaction Survey Water Resources Utilization Circular Economy Acceptance of Regulatory Inspections
Anti-Commercial Bribery and Anti-
Corruption
Fair Competition Customer Satisfaction Survey
Data Security and Customer Three-Tier Service System Community Activities
Privacy Customer Meetings and On-Site Exchanges Rural Revitalization and Social Public Welfare Activities Product and Service Safety and Technical Forums Volunteer Services
Customers Quality "Shougang Day" Events Communities Contributions Information Disclosure
Customer Service Joint Laboratories and Innovation Studio Alliances Open Day
Intelligent Manufacturing Smart Marketing Platform
Innovation
Climate Response
Strengthen Communication and Exchanges with the
Information Disclosure Media Industry Partners
Industry Exchange
Media / Public Timely Disclose Important Information and News Industry Associations
Innovation Holding Seminars and Forums
Acceptance of Media Interviews and Research Joint Laboratories Expert Workstation
Institutions
16 2025 Shougang Co. Sustainability ReportMateriality Assessment
Based on the results of the materiality assessment a double materiality analysis was conducted
Implementing regularized management of material issues is the basis and core for identifying to determine the priority ranking of material issues for 2025 and a materiality issue matrix was drawn.and assessing ESG risks impacts and opportunities and advancing sustainability work. To review
goal commitments policies and systems management strategies actions and performance in
sustainability and to respond to stakeholder concerns regarding the company's sustainability
The results of the double materiality analysis were reviewed and confirmed by the ESG working
matters the company conducts an annual combination of questionnaire surveys and on-site group and others. For issues with double materiality including Climate Response environmental
interviews to identify and update material ESG issues. These are fully integrated into the company's management (Pollutant Discharge Waste disposal Environmental Compliance Management)
Energy Utilization Innovation Employee Development (Employee Compensation and Benefits) and
operation management to continuously strengthen sustainability management and practice. Occupational Health and Safety disclosure is provided according to four dimensions: governance
strategy risk and opportunity management and metrics and targets. For other high and medium
In 2025 in accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen importance issues disclosure is centered on related management and actions.Stock Exchange—Sustainability Report (For Trial Implementation) and the Self-Regulatory Guidelines At the practical level the company strengthens the overall management of all issues relies on the
No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report the risk management and internal control systems to strictly control related risks and simultaneously
actively seizes opportunities to promote the company's realization of sustainability.company continued to conduct double materiality assessments. It solicited opinions extensively
from multiple departments and stakeholders comprehensively analyzed the impact of ESG issues
on business operations finance the economy the environment and society and provided focused
responses to material issues in this report.High
Employee Climate Response
During the process of reviewing and updating this year's ESG issue list the company strictly Compensation Energy Utilization
followed the provisions of the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen and Benefits
Stock Exchange—Sustainability Report (For Trial Implementation). It comprehensively considered Innovation
factors such as the policy environment ESG information disclosure standards international Pollutant Discharge
sustainability initiatives capital market ESG rating requirements outstanding industry ESG Waste Disposal
practices and the company's development strategy. On this basis the company optimized the 30 Environmental
ESG issues identified in 2024 by merging two issues subdividing one and refining existing ESG Employee Compliance Occupational
issues ultimately forming a list of 30 ESG issues to provide clear guidance and direction for the Career Intelligent Management Health and
company's sustainability. Development Manufacturing Safety
and Training Shareholder
Specifically the "Wastewater Discharge" and "Exhaust Gas Emission" issues were merged into Circular Economy Value Creation
"Pollutant Discharge" and the "Product Quality and Customer Service" issue was subdivided into Supply Chain Security
"Product and Service Safety and Quality" and "Customer Service." Employee-Friendly Workplace Water Resources Product and
Fair Competition Utilization Service Safety
Data Security and and Quality
Customer Privacy
Customer Service
Democratic Equal ESG Management
The company constructed an assessment process for identifying analyzing and evaluating the Management Treatment of
potential impacts risks and opportunities of sustainability issues as the basis for the assessment Ethics of SMEs Corporate Governance
of material issues. Science and Anti- Stakeholder Technology Engagement Information Commercial Disclosure
In the impact materiality assessment the importance of each issue's impact on the economy Ecosystem and Bribery Rural Revitalization
environment and society was evaluated through stakeholder questionnaires and interviews from Biodiversity and Anti-Protection Corruption and Social
two aspects: the possibility of the impact occurring and the degree of the impact. Due Diligence Contributions
In the financial materiality assessment experts from the company's finance and business
departments evaluated the degree of short- medium- and long-term financial impact based
on the continuity of resource use and the dependence on continuous production and operation.Combined with the possibility of risks and opportunities occurring the financial materiality of each
issue was quantitatively analyzed. Low
Low Impact Materiality High
2025 Shougang Co. Sustainability Report 17
Financial Materiality
Issue Issue Review and
Prioritization Reporting
Background Analysis and Materiality
Issue Identification AssessmentImpacts Risks and Opportunities of Issues with Double Materiality
Issue Value Chain Affected Stakeholders Impact Risk Opportunity
Time
Dimension3 Response Measures
Through our own carbon emission By R&D and production of low-
Upstream of reduction actions we help mitigate
Value Chain Suppliers climate change achieve the "dual Facing the risks of compliance costs and
carbon and green steel products
market access brought by increasingly the company can meet the green Climate Corporate Customers carbon" goals and reduce the impact
Response Operation Communities of extreme weather; green and stringent carbon constraint policies at
supply chain needs of high- Long-term Climate Response
Downstream of Public low-carbon products reduce the home and abroad (such as carbon market
end downstream customers Innovation
Value Chain whole life cycle carbon emissions of CBAM mechanism).thus obtaining market premium
and consolidating customer
downstream industries. relationships.The discharge of waste gas
wastewater and solid waste and Environmental violations or accidents may By achieving excellent
Environmental Corporate Suppliers resource consumption in the lead to financial and operational risks such
environmental performance and Environmental Compliance
Management Operation Customers company's production process as administrative penalties operational
ecological protection the company Medium & Management
Communities pose potential impacts on the local interruptions reputational damage and can enhance brand image and Long-term Pollutant Discharge
ecological environment quality and legal lawsuits. credibility and help obtain more Waste Disposal
biodiversity. favorable green finance support.The company helps the energy The company's continuous
structure transformation by promoting Fluctuations in energy prices and improvement of energy efficiency
Energy Corporate SuppliersCustomers clean energy and improving energy the requirements of energy structure
and increase in the use of
Utilization Operation efficiency and provides a model of transformation under the "dual carbon" renewable energy can effectively
Medium & Energy Utilization
Public energy conservation practice for the goals bring challenges to cost control. reduce long-term operating costs
Long-term
industry. and build an industry benchmark for leading energy efficiency.High investment in innovative technology
R&D may aggravate short-term financial
The company's R&D investment pressure and the uncertainty of R&D
and technological breakthroughs in cycle may increase operational risks; Through continuous innovation in
Corporate high-end products green and low- technological iteration accelerates the key processes and products the
Innovation Operation Customers carbon intelligent manufacturing differentiation of the industry ecosystem; company can build technological Medium & InnovationDownstream of Employees and other fields provide a practical if a technological moat cannot be formed barriers and develop high value- Long-term Intelligent Manufacturing
Value Chain path for the technological progress or R&D results fail to support the added products to gain market
and sustainable development of the improvement of business capabilities competitive advantages.entire industry. it will directly affect the company's
market competitiveness and long-term
development.Upstream of The company provides employees By providing comprehensive and Employee-Friendly Workplace
Value Chain with stable employment positions If the compensation and benefits are not attractive employment conditions
Employee Corporate competitive compensation and competitive or the development channels and growth platforms the
Democratic Management
Employee Compensation and
Development Operation Employees benefits and skill training which are not smooth it will lead to the loss of company can attract and retain Long-term
Downstream of directly affects the quality of life and key talents and affect production stability core talents providing guarantee
Benefits
Value Chain development prospects of employees and innovation capacity. for the company's continuous
Employee Career
and their families. transformation and development. Development and Training
Upstream of The complex environment of iron Safety accidents may cause irreparable By establishing an excellent Occupational
Health and Value Chain Employees
and steel production makes the safety guarantee system the
Corporate Suppliers company's safety management level
loss of life operational interruptions huge company can directly reduce the Long-term Occupational Health and
Safety Operation directly related to the life and health
compensation and devastating damage to cost of operational interruption Safety
of every practitioner. corporate reputation. caused by accidents
3 Based on the characteristics of our own operations and the upstream and downstream value chains the company identifies the risks and opportunities of issues from the time dimensions of short-term (within 1 year) medium-term (1 to 5 years) and long-term (more than 5 years).
18 2025 Shougang Co. Sustainability ReportEnvironment Anchoring the Dual Carbon Goals
Blueprinting a Green Future
Material Issues for Response
Climate Response Pollutant Discharge Waste Disposal Ecosystem
and Biodiversity Protection Environmental Compliance Management
Energy Utilization Water Resources Utilization Circular Economy
Key SDGs Addressed
Shougang Co. deeply implements the national "dual carbon" goals (carbon
peaking and carbon neutrality) constructing a full-chain Climate Response
system to promote low-carbon transition through short- medium- and long-
term strategic layouts. We have established an environmental management
system with clear rights and responsibilities deepening multi-dimensional
and precise pollution control to continuously consolidate its industry-leading
position in environmental performance. Centering on energy efficiency
improvement to optimize the energy structure the company strengthens the
utilization of waste heat and energy alongside clean energy substitution to
build a clean and efficient energy utilization model. We continuously promote
the resource-based and high-value utilization of solid waste forming a new
circular economy development model characterized by regional industrial
collaboration and the integration of the city and the enterprise. Upholding
the concept of biodiversity protection the company creates forest-style
Green Factories comprehensively shaping a new paradigm for green
development in the iron and steel industry.
2025 Highlights and Achievements
* Qiangang Co.'s Ultra-Low Emission Renovation Project awarded as the "14th Five-Year * Jingtang Co.'s pelletizing process awarded the title of Energy Efficiency Leader by the MIIT
Plan" Innovation Project in China's steel industry * Launched the "SOGREECO" green low-carbon product trademark and the Green Low-Carbon Cold
* Qiangang Co. and Jingtang Co. rated as level-A Enterprises in Environmental Rolled and Hot-Dip Galvanized Steel Sheet and Strip enterprise standard series
Performance of Hebei Province for consecutive years * Achieved full Environmental Product Declaration (EPD) coverage of typical product categories 23
* Qiangang Co. and Jingtang Co. rated as one of the First Batch of Level-A Leader products completed carbon footprint certification
Enterprises in Environmental Performance of Hebei Province in Key Industries * Smart Carbon Management Platform's LCA module has obtained a Verification Statement issued by DNV
2025 Shougang Co. Sustainability Report 19Climate Response Focusing on the field of addressing climate change under the coordination of the Green Manufacturing Committee the Low-Carbon Leadership Group is responsible for the decomposition
and promotion of specific work transforming strategic goals into executable tasks to ensure
Shougang Co. consistently regards green and low-carbon development as its core strategic
direction deeply implementing the national "dual carbon" goals. Based on its own industrial accurate implementation. The Low-Carbon Management Center is the management department for
foundation and technical advantages the company has constructed a full-chain system for climate governance undertaking responsibilities such as system construction system optimization
addressing climate change. Through process improvement production equipment upgrades and supervision and inspection. Each subsidiary is a specific execution unit integrating low-carbon
energy structure optimization and the R&D and provision of green products the company steadily development requirements into all links of production operation supply chain management and
promotes low-carbon transformation through systemic actions striving to create a benchmark for technical R&D based on the actual situation of its own business ensuring that various carbon
green development in the steel industry. emission reduction measures are effective and forming a management mechanism with vertical
synergy clear division of powers and responsibilities and efficient execution.Governance
Green Manufacturing Committee
Shougang Co. attaches great importance to green development and has established a scientific Responsible for formulating overall strategies clarifying goals and
and sound governance structure to ensure the systemic promotion and efficient implementation of Decision directions and making decisions on major matters.relevant strategies and actions. The company has established the Green Manufacturing Committee making Level Low-Carbon Leadership Group
as the decision-making and coordinating body for green development composed of members Responsible for the overall planning decomposition and implementation
of the company's management level responsible for formulating overall strategies clarifying of the company's specific low-carbon development tasks.goals and directions and making decisions on major matters. Six specialized working groups
have been established under it: the Low-Carbon Management Group the Energy Conservation Low-Carbon Management Center
Management Group the Solid Waste Resource Recycling Group the Green Supply Chain Group the Responsible for revising low-carbon related systems organizing
Environmental Protection Enhancement Group and the Green Park Group. Each group focuses on training sessions organizing the implementation and compliance
with system requirements and inspecting execution;
different fields—from low-carbon strategic planning energy structure optimization and efficient
Management/ Responsible for the overall design and optimization of the low-
resource circulation to green supply chain synergy environmental quality improvement and Supervisory carbon development business system and processes clarifying the
Level
park ecological construction—forming a multi-dimensional and professional work advancement responsibilities of relevant units and coordinating the resolution of
issues in operations;
system. At the execution level the Procurement Center Manufacturing Department Low-Carbon
Management Center Energy Department Environmental Protection Department and Office work Responsible for leading the preparation of the company's low-carbon action plan by collaborating with relevant departments
in deep linkage to specifically implement tasks such as energy conservation emission reduction clarifying phased greenhouse gas emission targets and formulating
and resource recycling and reuse building a closed-loop management mechanism of decision- corresponding implementation strategies.making leadership professional promotion and execution landing.Subsidiaries
Green Manufacturing Integrating low-carbon development requirements into all links Execution
Committee Level of production operation supply chain management and technical R&D based on its actual business situation to ensure the effective
implementation of various carbon emission reduction measures.Green Supply Solid Waste Low-Carbon
Energy Environmental
Conservation Protection Green Park In accordance with regulations and requirements outlined in documents such as the Responding to Resource Management
Chain Group Recycling Group Group Management Enhancement Group Climate Change: China's Policies and Actions the National Climate Change Adaptation Strategy 2035 Group Group and the Interim Regulations on Administration of Carbon Emissions Trading and in close alignment
with its actual conditions the company has formulated the Climate Governance Management System
Procurement Manufacturing Low-Carbon Energy Environmental and the Carbon Emission Reporting and Verification Management System. These systems standardize
Center Department Management Department Protection Office the full process of carbon emission accounting verification compliance and the implementation of
Center Department low-carbon measures.
20 2025 Shougang Co. Sustainability ReportStrategy Short-Term Strategy: Establishing a "Low-Carbon Product
Dedicated Line" for Integrated Iron and Steel Plant
In 2023 Shougang Co. released the Shougang Co. Ltd. Low-Carbon Action Plan establishing the Focusing on extreme carbon emission reduction in integrated steelmaking process as the core the
overall goal of "reaching carbon peak by 2025 and achieving carbon neutrality between 2050 and company concentrates on smelting process optimization and low-carbon technology application. We
2060." Centering on extreme carbon emission reduction in integrated steelmaking process and continuously improve the pellet ratio in blast furnace explore hydrogen-enrichment injection optimize
exploration of EAF steelmaking technologies the company has constructed four basic carbon high oxygen-enrichment smelting and promote high scrap ratio steelmaking in converter while
emission reduction routes: carbon emission reduction from source carbon emission reduction by simultaneously completing annual carbon emission accounting and obligation performance work.improving energy efficiency collaborative carbon emission reduction and social carbon emission Continuously promote the R&D and application of high-proportion
reduction. By optimizing production structure process structure energy structure and logistics High-Proportion Pellet pellet ironmaking in blast furnace technology. In 2025 Qiangang
structure we deeply build a green and low-carbon development pattern. Ironmaking in Blast Furnace Co.'s blast furnaces averaged a 43% pellet ratio reducing carbon
emissions by approximately 80000 tonnes year-on-year; Jingtang
Dual-Carbon Goals and Routes Co.'s pellet ratio remained stable at over 50% reducing carbon
emissions per tonne of iron by more than 10% and successfully
conducted industrial trials for 70% high-proportion pellet ironmaking.Focusing on breakthroughs in hydrogen-enrichment injection
Hydrogen-enrichment Qiangang Co. used numerical simulation combined with industrial
Injection in Blast Furnace
Smelting trials to study the impact of coke oven gas injection on the internal
state of the blast furnace accumulating key data and practical
experience for subsequent technology optimization.Through the technical route of intensified smelting with high top
High Oxygen-enrichment pressure high oxygen-enrichment and high blast temperature
Smelting in Large Blast
Furnace in blast furnaces the company continuously reduces the fuel
Route 1: Carbon Emission Reduction Route 2: Carbon Emission Reduction by ratio and total coke consumption significantly decreasing energy
from Source Improving Energy Efficiency consumption and carbon emission intensity.Develop low-carbon smelting furnace burden Construct the ult imate energy eff ic iency
operation system The company has successfully developed high scrap ratio steelmaking Develop efficient utilization technologies for
recycled steel materials Promote electrification of energy utilization High Scrap Ratio in converter technology achieving stable and continuous production with
Develop efficient recycling technologies for Develop and apply clean energy Steelmaking in
Converter a 50% scrap ratio for entire casting heat. This advancement enables secondary resources Construct a smart energy management and a carbon footprint reduction of over 40% for products including
Promote low-carbon metallurgical technology control system
innovation orderly automotive sheets tinplates household appliance sheets and hot-
rolled plates effectively driving carbon emission reduction across the
entire product life cycle.Route 3: Collaborative Carbon Route 4: Social Carbon Emission Reduction
Emission Reduction Establish product life cycle control system
Industry chains synergize to reduce carbon Develop high-performance and long-service
emissions performance low-carbon products
Develop waste resourceization and productization
technologies Promote synergistic carbon reduction in downstream industries
Research and development of CO2 capture and
resource utilization technology Construct green and low-carbon development
R&D and application steel and chemical co- concepts and models
generation technologies
2025 Shougang Co. Sustainability Report 21Mid-term Strategy: Constructing a Near-Zero Carbon Emission Long-Term Strategy: Promoting Decarbonization through the
EAF High-Quality Steel Production Line Large-Scale Utilization of Green Hydrogen and Green Electricity
The company focuses on the construction of breakthrough technology production lines. In March Anchoring deep decarbonization goals the company takes the large-scale application of green
2025 we launched the near-zero carbon emission EAF high-quality steel production line project hydrogen and green electricity as carriers to layout the R&D and innovative application of cutting-
expected to be completed in 2026. Once completed it will be the world's first production line with edge low-carbon metallurgical technologies. We have independently designed and developed
deep coupling of long and short steelmaking processes and the first to use EAF technology for biomass coke co-injection device which successfully completed an industrial trial of continuous
high-quality automotive sheets and high-grade non-oriented electrical steel. Upon completion injection of hydrogen-enrichment biomass micropowder at a scale of hundreds of tonnes marking
the first breakthrough in the utilization of biomass energy in steel metallurgy in China. We
of the project it is expected to reduce carbon emissions by more than 60% per tonne of steel
continuously track the development trend of the hydrogen energy industry pay close attention to
on average with an annual average emission reduction of approximately 1.43 million tonnes
the layout of hydrogen resources in surrounding areas actively explore new technology routes such
supporting the development of the company's low-carbon product portfolio and the achievement of as electrolytic seawater hydrogen production hydrogen production through metal cracking and
its medium- and long-term carbon neutrality goals. solid oxide electrolytic hydrogen production. We also deepen external exchanges and cooperation
to build a technical reserve and resource guarantee system for the large-scale application of green
hydrogen and deep carbon emission reduction in the whole process in the future.Intelligent Intelligent
logistics Plant Smart control
Coking Green and low-carbon products
Coal
BFG Scrap
Iron sintering
ore
Converter(BOF)
Process
Solvent adjustment
Lime kiln
Salg
CO2 CO2
Pelletizing ERS
H SWR Energy 2 CCUS recovery
Clean
electricity
Circulation ERS
industries SWR
Route 1 : Carbon reduction from sources
Route 2 : Carbon reduction by improving energy efficiency
Road Building Injecting carbon Chemical industries Alkali production Route 3 : Collaborative carbon reduction
dioxide into such as preparing with concentrated Route 4 : Social carbon reduction
oil field ethanol brine
Carbon Reduction Technology Route
22 2025 Shougang Co. Sustainability ReportRisks and Opportunities Management
Shougang Co. has established a regular mechanism for identifying assessing and responding to climate change-related risks and opportunities. We regularly carry out climate change risk and opportunity
investigations. Combined with industry policy orientation market environment changes and our own business characteristics and referring to the opinions of internal and external experts the company
comprehensively sorts out potential risks and development opportunities conducts risk assessments and formulates targeted response measures. We integrate risk control into the entire process of
strategy implementation promote the transformation of opportunities into development drivers effectively prevent various climate change-related operational risks ensure the steady progress of low-carbon
transformation and enhance the resilience of corporate sustainable development.Risk Category Risk Parameter Business and Financial Impact Time Degree of Horizon Impact Response Measures
The severity and
frequency of Jingtang Co. is located on the coast of Bohai Sea and experiences 1–2 severe
extreme weather typhoons and extreme weather events each year. Especially in recent years Physical Risk Acute Risk Short- Formulate emergency disposal plans strengthen departmental events (such as there has been a sudden increase in global extreme weather events which Low
typhoons floods may lead to impairment or loss of physical assets as well as other potential
term coordination and enhance risk resilience.etc.) increase economic losses.With the implementation of energy-conservation and emission reduction Promote high-proportion pellet ironmaking in blast furnace
Policy constraints policies in the steel industry as well as the implementation of environmental high scrap ratio steelmaking in converter and build near-
carbon pricing and carbon-related laws and regulations the company will face rising carbon Medium & Long- Medium zero carbon emission EAF high-quality steel production line; mechanism and prices and carbon compliance costs restrictions on coal use and other energy strengthen low-carbon technology R&D; build a Smart Carbon
Policy costs transition policies which will lead to corresponding increases in investment term Management Platform optimize carbon asset management
Laws and and operating costs. and ensure compliant performance.Regulations
The EU Carbon Border Adjustment Mechanism (CBAM) has officially entered its Actively pay attention to changes in industry policies and
Carbon tariff implementation phase imposing carbon tariffs on imported products including
Medium
& Long- Medium respond to possible policy updates in a timely manner; promote steel and cement which will restrain the company's exports of certain term the application of low-carbon technologies and product carbon products. footprint certification to reduce product carbon emissions.Low-carbon To achieve the company's "dual carbon" goals significant investments will be Medium Increase investment in low-carbon technology R&D; layout the
technology required in the future for the research and development or application of low- & Long- Medium R&D and innovative application of cutting-edge low-carbon
transformation carbon steelmaking technologies. The research and development process metallurgy technologies; deepen external exchanges and involves uncertainties. term cooperation to build a technical reserve system.Technology During the low-carbon transformation process the company will increase Issue green science and technology innovation corporate bonds
and Cost the use of renewable energy new energy and other energy conservation and to raise funds specifically; optimize the energy structure
Transformation cost environmental protection technologies. The application and investment in low-
Medium
& Long- Medium increase the proportion of clean energy use and reduce long-Transformation carbon steelmaking technologies will lead to an increase in the company's term term energy costs; build a smart energy management and Risk research and development costs and the risk of value loss of existing fixed control system to improve resource utilization efficiency to offset
assets. transition costs.With the deep adjustment period of domestic steel markets and the promotion Build a green supply chain strengthen green brand
Increasing demand of the green and low-carbon development trend throughout the industry chain
for green and low- the market demand for green and low-carbon steel products will significantly
Medium communication and achievement disclosure; develop green
& Long- Medium products such as high-strength and lightweight products to
carbon products increase. The industry competition will become more intense and if the greenization progress is too slow it may lead to a decrease in the company's term build a green product system; promote product carbon footprint
Market market share. certification and EPD release.Prices of energy and other resources will increase due to the impact of Medium Gradually increase the use of clean energy improve photovoltaic Rising costs of raw
materials climate change which will in turn affect the procurement costs of fuel and raw & Long- Medium
power generation capacity and the proportion of purchased
materials resulting in increased costs and other risks. term green power; build a smart energy management and control system to improve resource utilization efficiency.Investors and other stakeholders as well as the public will pay more attention Strengthen the construction of carbon management system Concerns of to the company's response to climate change measures and may even consider Medium and regularly disclose green and low-carbon development
Reputation stakeholders regarding climate it a key factor in evaluating the company's performance. This could potentially & Long- Low
achievements; participate in the formulation of green and low-
change measures pose reputation risks to the company and resources need to be invested to term
carbon standards to play a leading role in the industry; promote
strengthen carbon management in order to meet their expectations. low-carbon product certification and brand building and release the "SOGREECO" green and low-carbon product trademark.
2025 Shougang Co. Sustainability Report 23Climate change not only drives and changes socio-economic development models but also brings enrichment injection in blast furnace smelting and high scrap ratio smelting in converter to
multiple opportunities for the sustainable development of enterprises. The company actively achieve green upgrading of processes. In 2025 the company's blast furnace fuel ratio decreased
responds to climate governance requirements follows the low-carbon transition trend of the steel by 1.2% year-on-year reducing carbon emissions by 137000 tonnes. Furthermore we achieved
industry and seizes new opportunities brought by climate change. stable and continuous production with a 50% scrap ratio for entire casting heat enabling a product
carbon footprint reduction of more than 40% per tonne of steel. The energy efficiency levels of key
Opportunity Business and Time Degree of Response Measures processes continue to maintain an industry benchmark position.Category Financial Impact Horizon Impact
The company will continuously research and
develop green products with characteristics
Meet the market such as high strength lightweight long
demand for low- service life and high corrosion resistance
carbon steel such as high-performance non-oriented
Product and products expand Medium electrical steel high-performance oriented
Service high-end market & Long- Medium electrical steel automotive high-strength
share and term steel and ultra-thin tinplate (chrome-plate).increase product These efforts aim to build a low-carbon
added value. product portfolio while actively pursuing LCA and low-carbon product certifications to meet
market and customer demand for products
and services with low carbon emissions. Conducting Cutting-edge Research on Low-Carbon Technologies
By continuously refining our process The company focuses on innovation in low-carbon ironmaking process increases R&D investment
Reduce energy technologies fully leveraging waste heat and
consumption and energy researching and applying cutting- in cutting-edge low-carbon technologies and actively promotes the R&D and integrated application
operating costs edge energy conservation technologies and
Energy improve resource Medium employing big data and intelligent systems
of various carbon emission reduction technologies such as carbon dioxide capture and utilization
Efficiency utilization & Long- Medium we aim to construct an efficient smart energy steel slag carbonation technology and hydrogen-enrichment biomass micropowder.efficiency and term management and control system. This will
enhance the core enhance our resource utilization advance
competitiveness our efforts in energy conservation and
of the enterprise. carbon emission reduction and minimize
operational costs. Research on Steel Slag Carbonation Technology
Reduce We are committed to increasing the In 2025 Qiangang Co. carried out systematic research on steel slag carbonation technology established a
dependence on utilization of clean energy sources gradually
traditional high- to replace traditional high-carbon energy pilot device for steel slag and desulfurization ash to absorb carbon dioxide completed laboratory research
carbon energy sources. We will enhance photovoltaic power generation capacity and increase the on semi-dry steel slag carbonation and utilized the on-site 1000 m
3 steel slag carbonation device to
Energy reduce energy expenditure Medium- Medium proportion of green electricity purchased carry out trials on preparing high-flow backfill materials from steel slag tail slag cementitious materials. Sources and carbon term from external sources. Additionally we will further research and apply low-carbon It deeply explored the influence of factors such as fineness and dosage slurry concentration and curing performance
costs and help technologies to reduce the company's energy process on the performance of high-flow backfill materials providing technical support for the resource
achieve low- expenditures and compliance costs thereby supporting the achievement of low-carbon utilization of steel slag and the industrialization of carbonation technology.carbon goals. development goals.Obtain additional
benefits through
carbon emission Build a Smart Carbon Management Platform Carbon Short & improve the carbon management system Building a Low-carbon Product System
Management rights trading and improve Medium- Low actively participate in carbon emission rights and Trading carbon asset term trading and continuously strengthen carbon The company focuses on the production of low-carbon emission steel and has gradually built
management management. a low-carbon product system with four major series—automotive sheets electrical steel
capabilities.tinplates (chrome-plates) and plates—as the core collaborating with downstream users to
achieve full-chain energy conservation and carbon emission reduction. Products such as
Promoting Green Upgrading of Processes oriented electrical steel pipeline steel non-oriented electrical steel for new energy vehicles
The company continues to promote the R&D and integrated application of carbon emission and hot-rolled high-strength steel sheets and strips for automobiles produced by the company
reduction technologies such as high-proportion pellet ironmaking in blast furnace hydrogen- have been rated as "Green Design Products" by MIIT.
24 2025 Shougang Co. Sustainability ReportAutomotive Sheets Building Green Brand and Standard Systems
Cold-rolled automotive sheets have formed a series of advantageous products such To effectively respond to the upgrading market demand for low-carbon products the company has built green
as high-strength outer panels high-corrosion-resistant coated steel lightweight brand and standard systems to seize the first opportunity for low-carbon development through proactive
ultra-high-strength steel and hot-forming steel. The production control technology layout. In September 2025 the "SOGREECO" green and low-carbon product trademark was officially released
for low-carbon emission automotive sheets with a high proportion of pellets and over and the enterprise standard series Green Low-Carbon Cold Rolled and Hot-Dip Galvanized Steel Sheet and Strip
50% scrap ratio has reached a comprehensive carbon emission reduction ratio of and the price system for low-carbon automotive sheet products were launched for the first time.
more than 30%. Ultra-high-strength steel helps with vehicle lightweighting directly
reducing fuel consumption and costs; high-formability steel has excellent forming
performance improving material utilization; zinc-aluminum-magnesium coated Green Low-carbon Product Trademark and Enterprise Standards
products have high anti-corrosion performance increasing the service life of the
vehicle; diversified low-carbon emission control technologies effectively reduce carbon In September 2025 Shougang Co. hosted the "Joining Hands to Create Leading the Future with Carbon" 2025
Shougang Automotive Steel and Green Low-carbon Technology Forum in Guiyang. More than 400 customer
emissions. In 2025 the company developed the Uni-FISH series high-strength steel
representatives from automotive enterprises attended. The forum deepened industry cooperation through technical
for automotive outer panels (UF steel) characterized by fine-grained structure and
innovation and practiced the green and low-carbon development strategy.precipitates in the precipitate-free zone. This series of outer panels features high dent
resistance high isotropy high surface quality high aging resistance low waviness The forum presented Shougang's innovative technologies and green low-carbon practice results in automotive steel
and low ductile-to-brittle transition temperature achieving a domestic debut and through 15 reports and 8 exhibition areas. Simultaneously the "SOGREECO" green and low-carbon product trademark
providing high-end material support for the lightweight and low-carbon development was released and the enterprise standard series Green Low-Carbon Cold Rolled and Hot-Dip Galvanized Steel
of the automotive industry. Sheet and Strip and the low-carbon automotive sheet product price system were launched. From agenda design to
conference execution the forum consistently implemented the low-carbon concept and achieved full-process carbon
Electrical Steel neutrality through quantitative evaluation and offsetting by authoritative institutions.The company adheres to the product positioning centered on high-end high- The "SOGREECO" trademark as the core identifier of the company's green brand
efficiency green and eco-friendly. In 2025 the company debuted two grain-oriented embodies green low-carbon and ecological environmental attributes. Its carbon
electrical steel products for high-efficiency transformers. These products successfully emission reduction labels cover -30% to -80% (LCA basis) up to near-zero carbon
resolve the long-standing industry dilemma of balancing low core loss with low noise levels meeting promotion scenarios for green products with different carbon emission
providing critical material support for the construction of energy-saving and eco- reduction capabilities. This effectively addresses the competitive risks brought by the
friendly modern power grids. lack of low-carbon standards and product homogenization and reflects the systematic
differentiated and high-end development characteristics of the company's green brand.Tinplates (Chrome-Plates)
The enterprise standard series
The company developed high-proportion pellet ironmaking in blast furnace and 50% Green Low-Carbon Cold Rolled and
high scrap ratio steelmaking in converter. Combined with the use of green power Hot-Dip Galvanized Steel Sheet and
the carbon emission reduction exceeds 30%. Low-carbon emission steel products for Strip released by the company is the
tinplate have completed testing for 26 grades and 15 types of cans with stable quality first green and low-carbon product
meeting standards and the capacity for mass supply. standard in the steel industry that
integrates product performance
Plates and carbon emission reduction attributes directly serving green procurement in the automotive industry chain. The
The company launched the first environment-friendly 500 MPa grade low-carbon standards cover 5 major automotive sheet varieties including low-alloy high-strength steel and hot-stamping steel
wind power steel achieving a full-process carbon emission of less than 1.4 tonnes of with strength levels covering 300-2000 MPa. With the carbon emission reduction ratio as the core indicator it clarifies
carbon dioxide per tonne of steel; successfully developed 1000 MPa grade hydropower evaluation methods complying with current industry LCA carbon emission evaluation general specifications product
steel 1300 MPa grade ultra-high-strength steel and H /CO corrosion-resistant technical requirements under different carbon emission reduction ratios and residual element control standards. It 2 2
pipeline steel providing high-end material support for the ultra-high head and provides standardized and systematic support for the application and procurement of green and low-carbon materials
large-scale development of the hydropower industry the lightweight of construction in downstream industries playing a leading role in promoting a healthy and sustainable green steel market.machinery and the transmission of clean energy.
2025 Shougang Co. Sustainability Report 25Participating in the Formulation of Green Production Standards Enhancing Carbon Management Capabilities
The company actively plays an industry-leading role deeply participating in the formulation of green The company attaches great importance to the construction of carbon management capabilities.and low-carbon related standards to empower industry collaborative carbon emission reduction Through organizing carbon knowledge popularization training inviting external experts and third-
through standardization. party consulting companies to conduct special lectures and participating in industry low-carbon
training and exchanges it continuously improves employees' carbon management awareness
* Participated in the formulation of the national standard GB/T 46412-2025 Asset management— and professional ability. The Smart Carbon Management Platform with the product carbon LCA
Application guidance of carbon asset management system. system as its core has been improved to achieve full coverage of organizational and product
* The group standard T/CISA 103-2017 Technical specification for green-design product
carbon accounting. It can provide all-round intelligent solutions and services for enterprise "carbon
assessment—Non-oriented electrical steel for new energy vehicle neutrality" goal management green design of low-carbon products for downstream industry users led by the company
and carbon asset management.has been released and implemented. It has strongly promoted technical innovation
quality improvement and green manufacturing upgrades in the electrical steel industry
supporting the healthy development of the new energy vehicle industry. Smart Carbon Management Platform
* Led the formulation of 13 management evaluation standards such as the Evaluation The Smart Carbon Management Platform built by Shougang Co. takes the product carbon LCA system
Criteria of Green Production Management in Iron and Steel Industry (group standard) as the core. Based on the "one headquarters multiple bases" model it integrates four major modules:
integrating advanced technical indicators and green manufacturing concepts into compliance in the National Carbon Market carbon asset management carbon tariff and the product
industry standards to provide followable standard guidelines for the industry's green and carbon LCA system. Localized development is carried out around the "Five Unifications" principles:
unified interface unified data interface unified accounting method unified accounting model and unified
low-carbon transition.application of commercial databases. It provides a series of intelligent solutions and service schemes
Strengthening Low-carbon Product Certification for enterprises to implement "carbon neutrality" goal management conduct green design of low-carbon
products for downstream industry users and manage carbon assets.The company continues to promote low-
The platform has established a three-level carbon
carbon product certification. In 2025 it
emission data archiving and verification system system
released 8 domestic Environmental Product
of "process-enterprise-low carbon center" effectively
Declarations (EPDs) such as for hot- solving the problem of data dispersion. The platform's
rolled sheets and strips and cold-rolled LCA module has successfully obtained a Verification Statement issued by DNV a globally recognized third-
galvanized steel sheets and strips as well party certification body. Related projects won the first prize of the 6th Metallurgical Youth Innovation and
as 2 international EPDs for heavy plates Creativity Competition and the third prize of the 5th Intelligent Manufacturing Innovation Competition.and heat-treated heavy plates achieving
full EPD coverage of typical product categories. Hot-rolled coils obtained the low-carbon emission
steel certificate; 23 products including galvanized high-strength automotive sheets completed Green Science and Technology Innovation Corporate Bond
carbon footprint certification; low-carbon special steels 55MnB and S75YYJ successfully passed
the Kingfisher certification (SCS); the company was awarded the "Low-Carbon Supplier" Grade In July 2025 the company successfully issued 500 million yuan of Green Science and Technology Innovation
Certificate by the Automotive Industry Energy Saving and Green Development Evaluation Center. Corporate Bond. This bond issuance is an important measure for the company to actively respond to the
Additionally the company actively promoted supply chain carbon emission reduction signing low- national "dual carbon" goals practice the concept of sustainable development and optimize its debt structure.carbon emission steel cooperation agreements with 6 car companies including FAW-Volkswagen The raised funds are specifically used for projects such as low-carbon transition environmental protection
Volvo and NIO. Toyota certified the company's products with a carbon emission reduction of over transformation and project upgrading injecting strong impetus into the company's development of green
40%; carbon footprint certification was completed for 60 products from 38 suppliers building a low- productivity.
carbon collaborative system for the entire industrial chain.
26 2025 Shougang Co. Sustainability ReportMetrics and Targets the Guideline for Greenhouse Gas Emission Accounting and Reporting for the Iron and Steel Industry (CETS-AG-03.01-V01-2024) and other accounting standards the company conducts accounting and
verification of direct and indirect greenhouse gases within its operational control every year. In 2025
Centering on the overall goal of "reaching carbon peak by 2025 and achieving carbon neutrality in strict accordance with the requirements of the Notice on Work Related to the National Carbon
between 2050 and 2060" Shougang Co. has formulated a detailed phased and quantifiable Emission Trading Market in 2025 the company successfully completed the 2024 quota surrender and
implementation plan. compliance work achieving compliant fulfillment in the carbon market.The company attaches great importance to carbon emission indicator management and has In 2025 the company's GHG Emissions (Scope 1 & 2) totaled 44420648 tCO2 e.established a normalized tracking and monitoring mechanism to strictly control direct and
Indicator Unit 2025
indirect greenhouse gas emissions and emission intensity. Meanwhile in strict accordance with
GHG Emissions (Scope 1) tCO2e 41831526
GHG Emissions (Scope 2) tCO2e 2589122
GHG Emissions (Scope 1 & 2) tCO2e 44420648
In the future Shougang Co. will anchor its long-term goal of "achieving carbon neutrality between
2050 and 2060" taking green and low-carbon transition as the main thread and continuing
By 2025 to deepen the landing of low-carbon strategies. In the aspect of technical innovation we will
increase the scale of application of green hydrogen and green electricity promote the R&D
and innovative application of cutting-edge low-carbon metallurgical technologies and build a
The total CO emissions strive
2
to reach the peak. full-process deep decarbonization technology system. In terms of product upgrading we will
accelerate the production and effectiveness of the near-zero carbon emission EAF high-quality
steel production line continue to expand the coverage of the low-carbon product matrix and focus
By 2030 on expanding applications in high-end fields such as new energy vehicles humanoid robots and
hydrogen transportation to drive collaborative carbon emission reduction across the upstream
and downstream of the industry chain. In terms of management empowerment we will iterate
The dedicated line for low-carbon products has the ability to reduce the CO and upgrade the Smart Carbon Management Platform strengthen its ability to respond to carbon
2
tariffs deepen the construction of the green supply chain and low-carbon product certification
emission intensity per tonne of steel by 30% compared with 2020. and improve the "SOGREECO" green brand system. At the same time we will actively participate
in the formulation of green and low-carbon standards continuously improve carbon asset
management and trading capabilities and create a benchmark for low-carbon transition in the
steel industry through the multi-dimensional synergy of technical innovation industrial upgrading
and management optimization contributing Shougang's solutions and strength to the green and
By 2035
sustainable development of the steel industry.Technical Innovation
The total CO emissions are reduced by 30% from the peak.2 Green hydrogen green electricity low-carbon
metallurgical technology innovation
Green and
Industrial Upgrading
Low-carbon
From 2050 to 2060 Near-zero carbon emission EAF low-carbon product expansion
Transition
Management Empowerment
Strives to achieve carbon neutrality. Smart carbon management green supply
chain green brand
2025 Shougang Co. Sustainability Report 27Environmental Management The company has formulated basic business systems and specific operating specifications such as the Environmental Protection Responsibility System the
Air and Water Pollution Prevention and Control Management System the Solid
Shougang Co. upholds the development philosophy of "Green Transformation and Ecological Waste Pollution Prevention and Control Management System the Noise Pollution
Shougang Co." focusing on systematic governance precise control and regular advancement Prevention and Control Management System the Soil Pollution Prevention
to carry out environmental governance. By improving the environmental management system and Control Management System the Environmental Protection Management
deepening multi-dimensional precise pollution control and strengthening environmental risk Measures and the Management System for Environmental Monitoring. These form
prevention and control the company continuously enhances environmental governance efficiency. an environmental management system covering fields such as atmosphere
water and solid waste standardizing the entire process of environmental
Governance management. In accordance with Environmental Management Systems—Requirements with Guidance for Use (GB/T 24001-2016) the company has fully advanced the construction of its environmental
Shougang Co. has constructed a rigorous efficient environmental management organizational management system and passed the ISO 14001 Environmental Management System certification
structure and working mechanism with clear powers and responsibilities. The Environmental with a certification rate of 100%. Every year third-party institutions are commissioned to conduct
Protection Leading Group composed of members of the management level has been established supervision audits of the environmental management system to promptly discover and rectify
to be responsible for the company's environmental management work research key matters problems continuously enhancing the operational efficiency of the system and ensuring continuous
compliance and effective operation of the environmental management system.of the company's environmental protection efforts and make decisions on and coordinate the
resolution of important environmental issues. The Environmental Protection Department is the Strategy
management and supervision department for environmental management work responsible for
formulating environmental protection-related systems establishing and improving the company's Shougang Co. adheres to the environmental management policy of "complying with regulations
preventing pollution continuous improvement and environmental friendliness." Following the
environmental management system and organizing environmental protection management development philosophy of "Green Transformation and Ecological Shougang Co." we unswervingly
performance supervision and assessment. Subsidiaries following the principle of localized follow the path of innovation-driven lean environmental protection and green development
management are responsible for advancing the construction of professional environmental striving to build a "circular economy-based energy-conservation and environmentally friendly
management systems and continuously enhancing their environmental practices to ensure that clean and efficient" next-generation metallurgical demonstration plant. By upholding the
various environmental protection requirements are effectively implemented. Relevant personnel advancement and foresight of technology selection and management models as well as the near-
possess backgrounds and skills in energy and environmental management. zero pollution emissions and lean environmental management the company ensures that major
pollutants stably reach ultra-low emission standards and the emission performance per tonne
of steel reaches advanced levels of cleaner production with overall environmental performance
Environmental Protection Leading Group: Responsible for the company's
ranking among the world's first-class.comprehensive environmental management work studying major environmental
issues within the company making decisions coordinating and solving important Risks and Opportunities Management
environmental problems.Leadership Level Shougang Co. has incorporated the management of environmental-related risks and opportunities Environmental Protection Department: Responsible for establishing
and improving the company's environmental management systems into the company's comprehensive risk management system. Combined with industry
frameworks and goals; organizing environmental protection environmental policy orientation changes in market demand for green products and its own
management performance supervision inspection and assessment; production and operation characteristics the company focuses on all links of pollutant generation
promoting all subsidiaries to improve their environmental protection treatment and utilization. Through multi-dimensional measures such as strict compliance with
performance; and supervising and guiding all subsidiaries in carrying
out environmental impact assessments for construction projects in environmental protection laws and regulations upgrading monitoring and pollution treatment
accordance with the law. technologies promoting circular resource utilization improving emergency drill mechanisms Management/
Supervisory Level and strengthening environmental protection training for all employees the company accurately
Environmental Protection Departments of All Subsidiaries: Promoting judges and resolves various potential risks such as environmental compliance and unexpected
and continuously improving the construction of professional environmental environmental incidents building a bottom line for compliant operations and ecological safety. We
protection management systems on a localized basis; strictly implementing actively explore development opportunities such as policy orientation technology transfer and
laws regulations standards and the company's environmental comprehensive resource utilization to promote the optimal allocation of environmental protection
management systems; formulating emergency response plans for Execution resources and efficiency enhancement achieving controllable risks and well-utilized opportunities
unexpected environmental incidents and organizing drills; and continuously Level and helping the enterprise continuously improve its sustainability resilience in an industry
advancing various environmental governance tasks.landscape with tightening environmental constraints.
28 2025 Shougang Co. Sustainability ReportPotential Risk / Pollutant Discharge
Opportunity Type Business and Time Financial Impact Horizon Response MeasuresDescription
Exhaust Gas Treatment
Excessive discharge Establish a regular environmental
of pollutants protection supervision mechanism; The company consistently maintains the Environmental Performance Level-A standards. By
Regulatory and may lead to fines
standardize discharge declaration
from regulatory monitoring and information disclosure Non-compliance Risk Short-term and actively accept supervision; formulating and implementing the 2025 Green Action Plan we continue to enhance the level of
Risk authorities or even production continuously invest in advanced environmental protection production atmospheric pollution control through upgrading monitoring level pollution control management suspension for
rectification. equipment and technologies to improve environmental performance. efficiency enhancement and digital empowerment. These efforts comprehensively solidify our
Improve environmental protection leading position in green development within the industry.Unexpected
environmental monitoring and supervision to achieve
incidents may real-time monitoring and abnormal
attract public warnings; establish an emergency
attention and system for unexpected environmental
damage the incidents formulate environmental Has been rated as an Level-A enterprise in environmental performance of Hebei
corporate image; risk emergency response plans and
Unexpected waste gas regularly conduct emergency drills for
Environmental Risk wastewater Medium & unexpected environmental incidents
Province for consecutive years since 2019
Incidents waste residue Long-term to enhance response capabilities and
dust radioactive prevention levels; continuously reduce
substances pollutant discharge and mitigate
and noise cause environmental impacts through
pollution and harm multi-pronged measures such as refined management and application Qiangang Co.to the environment
increasing of advanced technologies; carry out
governance costs. environmental protection training and publicity activities.Promote the R&D The world's first enterprise to achieve ultra-low emissions for the entire steel
and application
of more efficient Increase R&D investment in production process.pollution control environmental protection technologies
Green technologies and
deepen industry-university-research The ultra-low emission renovation project was rated as a "14th Five-Year Plan"
Technology Opportunity resource recovery Medium &
institution collaborative innovation
Innovation technologies etc. Long-term
promote the landing and transformation
to reduce costs of of green technology achievements and
Innovation Project in China's steel industry.pollutant treatment industry standardization and transfer technical solutions such as ultra-low One of the first batch of Level-A leader enterprises in environmental performance of and improve
resource utilization emissions. Hebei Province in key industries.efficiency.Strengthen cooperation with
Through the downstream enterprises to build a 授予：首钢迁钢公司超低排放改造工程
Circular development of steel circular economy and closed-
Economy and circular economy loop recycling value system; promote
Comprehensive Opportunity achieve the Medium & the reduction and comprehensive
Resource resource utilization Long-term utilization of solid waste and create
中国钢铁工业“十四五”
Utilization of waste and reduce a cross-regional cross-industry and waste disposal cross-medium solid waste circulation
costs. network; promote the construction of
"Zero-Waste Group." 创新工程
Environmental Compliance Management 中国钢铁工业协会 中国金属学会
二〇二六年一月
The company strictly adheres to environmental laws and regulations fulfilling local regulatory
requirements and the discharge permit system. We standardize our practices in emission
declarations monitoring and information disclosure actively accepting oversight from ecological
departments and the public to ensure all discharges are legal and permitted. In 2025 our Jingtang Co.environmental facilities operated reliably with all major pollutant discharges meeting the
requirements of pollutant discharge permits and ultra-low emission standards for pollutants. The One of the first batch of Level-A leader enterprises in environmental performance of
comprehensive compliance rate for pollutant discharge reached 100% with zero environmental Hebei Province in key industries.pollution incidents recorded.
2025 Shougang Co. Sustainability Report 29Improving Environmental Protection Monitoring and Supervision
Qiangang Co. and Jingtang Co. Rated as One of the First Batch of
The company continuously optimizes the unorganized emission control
and management system establishing a real-time linkage model between Level-A Leader Enterprises in Environmental Performance of Hebei
production equipment and monitoring data. Province in Key Industries
In 2025 the company interfaced with the provincial dynamic evaluation mechanism of Hebei to accurately grasp
environmental policy orientation ensuring the company's regulatory and control strategy remains synchronized
B y upgrading regulatory measures the company has
with the Hebei provincial "leader" standard. Internally it constructed a "source prevention - process control -
installed high-definition environmental video surveillance end-of-pipe treatment" full-chain management system. Emission concentrations of particulate matter SO2 and
in ash unloading rooms and sludge discharge points of NOx strictly followed the Environmental Performance Level-A Standard for Key Industries in Hebei Province (Trial).Qiangang Co. key processes such as sintering and replaced abnormal By focusing on precise pollution control of pollution sources and stable compliant discharge of pollutants
data sensors in TSP and air quality micro-stations Qiangang Co. and Jingtang Co. maintained its leading environmental performance Level-A fully playing the role
achieving real-time emission monitoring and abnormal of a demonstration benchmark.early warning.T he company completed the
installation of monitoring
equipment for CO particulate
Jingtang Co.matter SO2 and NOx and the
networking acceptance of
some points.Installation and Networking
The company has updated of Monitoring Equipment
online exhaust gas monitoring equipment to further
Cold-R Co.improve monitoring accuracy and control efficiency
ensuring that emission data is traceable and verifiable.Providing Ultra-low Emission Renovation Schemes to External Parties
Qiangang Co. and Jingtang Co. organized
Continuously Deepening Pollution Governance other steel companies to establish an
ultra-low emission special working
The company has successively implemented group and advance ultra-low emission
environmental protection projects such renovation establish a system of
as optimization and transformation of monthly special promotion meetings
sintering feed systems pulverizing systems and implement measures including
and acid mist purification systems for supervision by listing and reverse
pickling and rolling processes as well as schedule of construction period.treatment of carbon monoxide emissions In 2025 Shougang scientists and
and denitrification treatment to continuously Optimization and
renovation of the No.1 professional backbones were organized
improve the ecological environment of the pulverizing system of the to conduct 7 rounds of on-site guidance at relevant units providing over 90 targeted suggestions and assisting them in
plant area and surrounding areas. No.1 blast furnace successfully completing ultra-low emission renovation.
30 2025 Shougang Co. Sustainability ReportWastewater Discharge Management Solid Waste Disposal
The company strictly complies with the Solid Waste Pollution Environment Prevention Law and relevant
Achieves efficient water saving and wastewater resource utilization through
laws and regulations. In 2025 it revised systems such as the Solid Secondary Resource Management
technologies such as condensate recovery and utilization comprehensive System and the Solid Waste Pollution Prevention and Control Management System to ensure that
Qiangang Co. sewage treatment and deep treatment technologies coking wastewater deep solid waste disposal is in accordance with laws and regulations. Following the basic principles of
treatment zero wastewater discharge technology for cold rolling and online "reduction reuse industry collaboration and productization" we focus on source control supervision
monitoring of process production wastewater discharge. of the processing procedure end-treatment and comprehensive utilization to achieve "zero solid waste
disposal from the factory" and promote the construction of "Zero-Waste Group."
Jingtang Co. has built complete wastewater treatment facilities to realize the
preliminary treatment of special process wastewater in the region before being Hazardous Waste Management
incorporated into the comprehensive sewage treatment station for unified
treatment and reuse. In 2025 it introduced standalone sets of domestic sewage In accordance with the national hazardous waste catalog identification methods and standards
the company identifies generated solid waste and strictly implements requirements for classified
treatment technology and built an integrated decentralized domestic sewage
Jingtang Co. storage dedicated personnel control and compliant disposal. For hazardous wastes such as oily
treatment system to achieve on-site treatment and reuse of domestic sewage sludge waste emulsion waste oil contaminated waste and waste batteries standardized storage
from office areas and canteens. It optimized seawater desalination treatment management is strengthened in accordance with the Pollution Control Standards for Hazardous
facilities using reclaimed sewage to replace seawater for preparing desalted Waste Storage (GB 18597-2023) to ensure 100% compliant disposal. In 2025 no environmental risk
water achieving water quality improvement at 30% of the operating cost of incidents such as hazardous waste leakage or illegal transfer occurred.traditional sewage reuse treatment.U tilized a total of 10000 tonnes of 2 types of general industrial solid waste and
Cold-R Co. has formulated internal control indicators stricter than national Qiangang Co. 20000 tonnes of 7 types of hazardous waste. The volume of outsourced disposal
standards raising the standard for discharging wastewater into urban sewage of hazardous waste at pilot units decreased by 1500 tonnes year-on-year.Cold-R Co. treatment plants to levels related to surface water discharge. For example while Jingtang Co. Implemented the emulsion sludge reduction treatment project achieving a 60%
the national COD discharge standard is 200 mg/L Cold-R Co.'s internal control reduction of waste emulsion at the source.standard is 30 mg/L. The generation of hazardous waste is controlled with the goal of reducing by 1%
Cold-R Co. every year decreasing by 1.78% year-on-year in 2025. Among them circular
utilization equipment was added in the link of rolling oil sludge generation
reducing the generation of hazardous waste by 30%.Jingtang Co.'s Sewage Desalination Reduction
Underground Pipe Network Renovation and Integrated Jingtang Co.'s Emulsified Liquid Sludge Reduction
Domestic Sewage Treatment Project Treatment Project
In 2025 Jingtang Co. completed the innovative transformation project of sewage The emulsified liquid oil sludge generated from the cold rolling
desalination reduction using thermal seawater desalination equipment to evaporate and line is an ointment-like solid-liquid mixture. To reduce the output
concentrate sewage to realize wastewater reduction. At the same time the produced and treatment cost of hazardous waste reduce the work content
demineralized water is reused in production processes to realize the effective recycling and intensity of receiving storing and discharging emulsified liquid
of wastewater resources. It also completed the underground pipe network renovation sludge and purify the environment in 2025 Jingtang Co. renovated
the cold rolling line adopting the process of "cold rolling emulsified liquid tank → magnetic
and integrated domestic sewage treatment project reducing seawater leakage adding
filter→ oil sludge treatment equipment → emulsified liquid tank (separated emulsified liquid)→
domestic sewage treatment facilities in the hot rolling and feeding canteens and reducing collection bucket (separated oil residue)" completed the equipment installation and reduced
the concentrations of chemical oxygen demand and ammonia nitrogen in wastewater. the source of waste emulsified liquid by 60%.
2025 Shougang Co. Sustainability Report 31Cleaner Production Environmental Protection Supervision
The company continuously promotes cleaner production with the overall cleaner production level The company has established a regular environmental protection supervision mechanism
reaching Level I standards in the Cleaner Production Evaluation Index System. scientifically formulating work plans covering 6 key areas including post-permit management
of pollutant discharge permits and dust governance. In 2025 the company organized 1995
environmental protection supervision inspections of various types. Regarding the issues found
Qiangang Co. during the inspection measures such as tracking re-examinations and supervised handling were
taken to ensure all problems were rectified within the specified time; successfully passed 253
Cleaner Production and Environment-friendly Enterprise in China's Iron and Steel Industry environmental inspections at all levels and the inspection results all met environmental protection
requirements.Benchmark Enterprise for Clean Production in the Iron and Steel Industry of Hebei Province
Jingtang Co.Cleaner Production and Environment-friendly Enterprise in China's Iron and Steel Industry
Special inspection of carbon monoxide
Actively strives to become an industry benchmark for cleaner production and
organizes clean production audits in accordance with the requirements of Hebei
Jingtang Co.Province's cleaner production audit management to promote pollution reduction Full-process pollutant discharge inspection
and carbon emission reduction in production links. of coking and iron and steel industries
All raw materials are transported by railway; 17 new electric vehicles and 5 Emergency Plans and Drills
Cold-R Co.hydrogen energy vehicles are added for product outward transportation. In accordance with the requirements of laws and regulations and combined with its own actual
situation the company has established and continuously improved the emergency management
system for sudden environmental incidents to strengthen the prevention of sudden environmental
incidents improve emergency response capabilities and effectively control and reduce
environmental hazards. We have established emergency command headquarters for sudden
environmental incidents responsible for organizing and implementing emergency response
work for sudden environmental incidents formulating comprehensive emergency plans for
sudden environmental incidents and organizing drills as planned to improve the organizational
command rapid response and emergency disposal capabilities for sudden environmental
incidents. Projects such as straight-line traveling grate roasters lime kilns railway transportation
capacity improvement and resource utilization of general industrial solid waste are included in the
emergency plan to strengthen the comprehensiveness and pertinence of emergency management.Clean Transportation In 2025 the company organized a total of 42 various environmental protection emergency drills.
32 2025 Shougang Co. Sustainability ReportCold-R Co. Conducted an Emergency Drill for Lye Leakage Metrics and Targets
In accordance with the Environmental Protection Plan Indicators and Statistical Management
In March 2025 Cold-R Co. carried out an emergency drill for lye leakage caused by a System Shougang Co. formulates long-term environmental protection goals every five years and
fault in the lye valve of the cleaning section. After the activation of the emergency plan for formulates annual environmental goals and implementation lists of management goals every
sudden accidents relevant personnel in the operation area rushed to the scene quickly year to ensure the orderly progress and steady implementation of environmental protection work.performed their respective duties and controlled the scene in an orderly manner. The drill The goal is that by 2035 we will continue to reduce air pollutant emissions maintain Level-A
achieved good results improving the safety and environmental protection awareness and environmental performance and keep the pollution emission indicators of all processes and the
on-site organization and disposal capabilities of the participants. level of unorganized emissions control and treatment at the leading level. In addition the company
has formulated normalized environmental management goals such as resource conservation
eliminating environmental pollution incidents 100% compliance rate of pollutant emissions 100%
compliance disposal rate of hazardous waste 100% synchronous operation rate of environmental
protection facilities and primary production equipment and 100% completion rate of emergency
response drill plans.The company has established a regular tracking mechanism for the progress of goal completion
to ensure the steady implementation of various indicators. In 2025 the company achieved 100%
compliance rate of pollutant emissions 100% compliance disposal rate of hazardous waste
100% synchronous operation rate of environmental protection facilities and primary production
Environmental Protection Training and Publicity equipment and 100% completion rate of emergency response drill plans. The rate of environmental
The company actively carries out special environmental protection training and publicity and accidents and incidents was 0 and emissions of smoke dust sulfur dioxide and nitrogen oxides all
met the annual targets.education activities advocates green office and continuously improves the environmental
protection awareness of all employees. In 2025 it carried out 6 various large-scale environmental Indicator 2025 Goals 2025 Results
protection training sessions with a 100% coverage rate of environmental protection training. Pollutant Emission Compliance Rate 100% 100%
The training forms are diverse including participating in industry environmental protection Hazardous Waste Compliance Disposal Rate 100% 100%
conferences and exchanges carrying out special training on new pollution control technologies Synchronous Environmental Operational Protection 100% 100%
and development trends and organizing special training on environmental protection laws and Rate Facilities for and Primary Production Equipment
regulations. During June 5th World Environment Day it extensively publicizes energy conservation Emergency Response Drill Plans Completion Rate 100% 100%
and environmental protection concepts through various forms such as playing promotional videos Environmental Accident and Incident Rate 0 0
carrying out environmental protection essays and commending advanced models enhancing the Compliance with: Steel Industry Air Pollutant Ultra-Low
environmental protection awareness and enthusiasm of all employees. Compliance Emission of Smoke Dust SO and NO Emission Standards: DB13/2169-2018
Meeting
2 x Coking Chemical Industry Air Pollutant Emission
Ultra-Low Emission Standards: DB13/2863- Standards
2018
Indicator Unit Permitted Emissions Actual Emissions
Particulate Matter (PM) Emissions Tonne 6032.1 4888.92
Sulfur Dioxides (SO2) Emissions Tonne 3717.29 1761.83
Nitrogen Oxides (NOx) Emissions Tonne 7460.57 4021.65
Chemical Oxygen Demand (COD) in Wastewater
Qiangang Co. jointly held a World Environment Day environmental protection legal Discharge
Tonne 648.99 1.1176
popularization activity with the Qian'an Municipal Bureau of Ecology and Environment Ammonia Nitrogen(NH3-N) in Wastewater Discharge Tonne 64.90 0.0490
2025 Shougang Co. Sustainability Report 33Resource Utilization In accordance with laws and regulations such as the Energy Conservation Law the company has formulated and continuously improved systems such as the
Energy Management System and the Electricity Supply and Usage Management
Resource utilization is a key link for enterprises to achieve green and low-carbon transformation and improve sustainable System. It has established an energy management system that complies
development capabilities. Shougang Co. actively responds to the national "dual carbon" goals incorporates energy with the national standard Energy Management Systems—Requirements with
efficiency improvement and intensive water resource utilization into the core agenda of the company's development and Guidance for Use (GB/T 23331) with a certification ratio of 100% and actively
systematically promotes the efficient clean and circular utilization of energy and water resources through improving the conducts audits to ensure the effectiveness of the system.management system promoting technological innovation strengthening risk control and goal orientation.Energy Efficiency Improvement Intensive Utilization of Water Resource
Improve the Management System能源管理体系认证证书
经北京国金衡信认证有限公司审核，确认Promote Technological Innovation 首钢京唐钢铁联合有限责任公司
统一社会信用代码：911302307808371268建立和实施了符合 GB/T 23331-2020/ISO 50001:2018《能源管理体系 要求Strengthen Risk Control 及使用指南》及 RB/T 103-2013《能源管理体系 钢铁企业认证要求》的能源管理体系。
体系覆盖的范围:
钢铁产品的生产、经营、服务过程中涉及到的能源采购、接收贮存、加工转
Implement Goal Orientation 换、输配、使用、余热余能回收利用等过程的管理及节能技术的应用。
地理位置：
河北省唐山市曹妃甸工业区；河北省唐山市曹妃甸工业区钢铁电力园区。
（获证组织本年度产品单位产量综合能耗或万元产值能耗及能耗核算边界见标有相同证书注册号的证书附件，证书附件是本证书组成部分）证书注册号:02224En070R4L 颁证日期:2024年12月5日 有效期:2024年12月5日至2027年12月4日
Efficient Clean and Circular Utilization of Energy and Water Resources 第一次监督2025年 12月 4日前
Energy Utilization
Governance Energy Management System Certification
Shougang Co. has built a well-structured and highly efficient energy management framework covering three levels:
the Energy Conservation Management Group of the Green Manufacturing Committee the Energy Department and the Strategy
Energy Departments of subsidiaries. It implements a "flat and centralized consistency" management model to construct
Energy efficiency improvement is one of the core measures for the steel
an Energy Management System characterized by a "flat structure streamlined concentration efficient operation and
industry to achieve green low-carbon and high-quality development.clean environment."
The Energy Conservation Management Group of the Shougang Co. firmly and unswervingly taps the potential of energy efficiency
Green Manufacturing Committee. Responsible for energy optimizes energy structure carries out energy conservation technological
management researching significant energy issues making innovation and integrates green production into the entire process of
decisions and coordinating solutions to major energy
production and operation.conservation issues.The Energy Department. Responsible for establishing and The company strives to become an energy efficiency benchmark. The energy
improving energy management systems frameworks and consumption of each process has continuously decreased and energy
Leadership goals; organizing energy management performance supervision consumption indicators for key processes have stably reached benchmark
Level inspection and assessment; driving subsidiaries to improve energy levels. They were among the first batch of enterprises in the steel industry to
performance; and supervising subsidiaries in carrying out energy- be publicly listed as "Energy Efficiency Benchmark Demonstration Factory
saving technical transformations in accordance with the law to
Management/ achieve energy-related indicators and goals. for Dual Carbon Best Practice" by the CISA. In 2025 key processes energy
Supervisory Level consumption continued to maintain benchmark levels. Jingtang Co.'s
Energy Departments of All Subsidiaries. Responsible for the
localized construction of energy management systems and pelletizing process was awarded the title of Energy Efficiency "Leader" by
Execution Level executing energy management and related energy indicators at MIIT making it the first enterprise in the steel industry to receive this title for
the subsidiary level. the pelletizing process.
34 2025 Shougang Co. Sustainability ReportRisks and Opportunities Management
Energy consumption intensity utilization efficiency and compliance are directly related to
operating cost control green brand image building and sustainable development capabilities.Based on the green and low-carbon transition trend of the steel industry Shougang Co. takes
laws and regulations as its compliance basis system construction as its safeguard and
technological innovation as its driver. We systematically coordinate and oversee the potential
risks and development opportunities of energy management. Through diverse measures such as
ultimate energy efficiency promotion waste heat and energy utilization clean energy substitution
emergency management and energy-saving publicity we minimize the impact of risks.With 22 key tasks as the main line 160 indicators as support and the "Energy
Potential Risk / Type Business and Financial
Opportunity Description Impact Time Horizon Response Measures Efficiency Benchmark Advanced Enterprise" as guidance Qiangang Co.formulated annual energy work plans and specified energy conservation
Reduce energy consumption
Energy consumption and improve energy utilization transformation projects to promote energy conservation and consumption
Regulatory and violation higher than relevant efficiency by selecting high- reduction in all processes. In 2025 it implemented energy efficiency
Risks Risk standards will face Short-term energy-efficiency equipment Qiangang Co.fines from regulatory using advanced energy improvement and carbon emission reduction transformations in the ironmaking
authorities. conservation technologies and area including projects like the sintering machine waste heat power generation
cascaded energy utilization.system and hot blast stove burner optimization. These resulted in an annual
Energy substitution (such Increase the proportion of clean/renewable energy use lock energy conservation of 17800 tonnes of standard coal and a reduction of 46300 as purchasing more green
electricity) or R&D of new in green electricity resources tonnes of CO2 emissions.Energy Substitution Risk low-carbon energy (such Medium & through the "long-term
as hydrogen energy) will Long-term agreement" model increase the
lead to increased company proportion of green electricity
Jingtang Co. developed an Ultimate Energy Efficiency promotion plan focused
procurement and optimize the on extremely low costs and extreme energy efficiency. Guided by the List costs or R&D investment. energy structure. of Ultimate Energy Efficiency Technologies (T80) it actively promoted the
Energy pollution incidents Improve energy management application of energy conservation technologies and implemented energy
Environmental Impact and will attract public Medium & systems and emergency Jingtang Co. conservation actions in key processes. In 2025 it advanced transformations for
Reputation Damage Risk attention damage the corporate image and thus Long-term systems and carry out energy production processes including low-temperature waste heat steam recovery
affect revenue. conservation publicity.for converters and energy efficiency improvement of circular cooler waste heat
Actively promote the Ultimate
Energy Efficiency Project recovery facilities achieving an annual energy conservation of 83300 tonnes of
Energy Efficiency Reduce energy consumption stimulate the enthusiasm of all standard coal.Improvement Opportunity and costs and improve Continuous employees through management financial benefits. energy conservation and
consolidate the energy efficiency
benchmark position. In the 2025 "National Energy Conservation and Consumption
Reduction Benchmarking Competition for Key Large-scale
Ultimate Energy Efficiency Iron and Steel Production Equipment"
The company actively promotes the Ultimate Energy Efficiency Project formulating the Ultimate * Qiangang Co.'s No.2 Blast Furnace and No.8 Sintering
Machine won the title of "Champion Furnace" No.3
Energy Efficiency Work Promotion Plan and the Integrated Energy Cost Reduction and Ultimate Energy
Blast Furnace won the title of "Outstanding Furnace"
Efficiency Promotion Plan to advance systematic consumption reduction and quality improvement. and No. 4 Converter won the title of "Pioneering Furnace".Qiangang Co. and Jingtang Co. were among the first batch of "Energy Efficiency Benchmark
* Jingtang Co.'s No.2 Sintering Machine won the title of "Champion Furnace" for
Demonstration Factory for Dual Carbon Best Practice" and were rated as "Advanced Enterprise
three consecutive years No. 2 Blast Furnace and No. 7 Converter won the title of
in Organizing and Promoting the Steel Industry Ultimate Energy Efficiency Project Three-Year "Outstanding Furnace".Benchmark Action in 2024."
2025 Shougang Co. Sustainability Report 35Jingtang Co.'s Pelletizing Process Was Awarded the
Energy Conservation through Technology
The company actively promotes Title of Energy Efficiency "Leader" by MIIT
m a t u re a n d a d va n ce d e n e rg y
conservation technologies from the Jingtang Co.'s pelletizing process was successfully selected into the list of Energy
List of Ultimate Energy Efficiency Efficiency "Leader" Enterprises in key industries in 2025 by MIIT becoming the first
Technologies (T80) list. The blast enterprise in the iron and steel industry to win the title of Energy Efficiency "Leader" in
furnace process reduced solid fuel Energy Conservation Renovation the pelletizing process. The process is characterized large single-machine capacity and
and gas consumption through hot blast stove efficiency upgrading and high-proportion high automation. It has achieved energy efficiency improvement through three major
pellet smelting. The converter process achieved significant efficiency gains by increasing technological innovations providing replicable successful experience for the green
gas recovery and reducing gas and electricity consumption. transformation of the industry.Energy Conservation through Management
The company established a sound Energy Management System using "three rulers" for Thick Bed Low-Temperature Roasting Technology
energy efficiency indicators and building a Smart Energy Control Platform to promote
intelligent management. By revealing the heat storage mechanism of the material bed Jingtang Co. proposed a
consolidation method that "prolonging high-temperature duration is more efficient than raising
the temperature". Based on the research on the coupled reaction between iron ore and flux
the configuration of the preheating section was optimized. The thick bed low-temperature
slow-heating process was adopted increasing the bed thickness by 50 mm which significantly
Qiangang Co. Explores a New Path for Efficient and Low- reduced gas consumption and improved pellet consolidation quality.Consumption Iron and Steel Smelting
High-Efficiency Hot Air Circulation System
In 2025 Qiangang Co. practiced the multi-dimensional energy conservation and A high-efficiency hot air circulation system for straight-line traveling grate roasters was developed.consumption reduction concept of "awareness leadership technology empowerment The thermal system was optimized through flow field simulation and heat redistribution realizing
and management efficiency improvement" integrated lean management into the entire cascaded utilization of hot air. The power consumption of process fans was reduced by 25%
production process and explored a new path for efficient and low-consumption iron and and the energy utilization rate reached 88% laying an important technical foundation for energy
steel smelting. conservation and consumption reduction in similar processes.Equipment Upgrade The Qiangang Co. applied high-efficiency fans and frequency Research on Comprehensive Technology for Reducing Resistance Loss
conversion speed regulation technology to upgrade blast furnace dust removal fans
with power consumption decreased by 18.6% year-on-year achieving significant power To address the problem of high air flow resistance loss in thick beds Jingtang Co. increased
saving effects; pioneered the application of pneumatic backblowing devices in water the proportion of pellet raw materials with particle size of ±2 mm to 86% through intelligent
slag granulating filters instead of electric backwashing significantly reducing the power pelletizing; the distribution and screening system was optimized reducing machine speed
consumption of the water slag granulating process. fluctuation by 69%; a new type of air distribution plate and anti-adhesion grate were developed
solving the clogging problem.System Optimization The Qiangang Co. scientifically adjusted the control indicators
of the hot blast stove denitrification system and by optimizing the load reducing the
fan frequency and balancing the pressure of the flue gas main pipe and the flue gas
temperature the power consumption of the hot blast stove flue gas treatment system
decreased by 34.1% year-on-year achieving a win-win situation of environmental protection
compliance and in-depth consumption reduction.Process Optimization Promoted the "zero emission" renovation of the No. 2 sintering
circular cooler innovatively adopted the circulating air utilization technology replacing
three blowers with a single circulating fan reducing the total power consumption of
equipment operation by 10.75 million kWh.
36 2025 Shougang Co. Sustainability ReportJingtang Co.'s Sintering Machine Won the Title of " Utilization of Waste Heat and Energy
Champion Furnace" for Three Consecutive Years Following the principle of "Recycle More Reduce Loss Generate More Power" the company
continuously strengthens the recovery of waste heat and energy from blast furnace gas and
In the "National Energy Conservation and Consumption Reduction Benchmarking converter gas to achieve "total recovery and efficient utilization" of gas resources and improving the
Competition for Key Large-scale Iron and Steel Production Equipment" Jingtang Co.'s level of waste heat and energy utilization. In 2025 the company integrated "Gas-Steam-Electricity-
Environmental Protection" to achieve zero discharge of blast furnace gas and zero under-recovery
No.2 Sintering Machine won the title of "Champion Furnace" again.of converter gas generating 7.98 billion kWh of secondary energy power hitting a record high.In recent years the sintering process of Jingtang Co.has successively implemented energy conservation and Extreme Gas The steelmaking process of Qiangang Co. increased the recovery of
emission-reduction technologies such as comprehensive Recovery converter gas by reducing the proportion of slag formation and slag removal
injection on the material surface waste heat utilization operations optimizing the converter steelmaking process and delaying
and internal and external flue gas circulation. It has the stop time of gas recovery realizing zero venting of converter gas.Jingtang Co. comprehensively solved the problems in all links of converter
optimized the system's energy conservation control gas recovery transportation and use and implemented measures such
methods and production organization models and pursued excellence in links such as operation optimization and thermal system fuel consumption research
as reducing solid fuel consumption and improving waste heat recovery. The solid fuel realizing full recovery of gas.consumption of No.2 Sintering Machine decreased by 2.99 kg/tonne year-on-year the
Secondary Energy The new 100 MW generating unit of Qiangang Co. was put into operation
process energy consumption decreased by 2.83 kg of standard coal/tonne year-on-year Power Generation and orderly eliminated inefficient generating units. Jingtang Co. is equipped
and the waste heat steam output increased by 4.41 kg/tonne year-on-year realizing the with 2 sets of 300 MW coal-gas mixed combustion generating units and 1 set
coordinated development of efficient production green development and low-carbon of 100 MW ultra-high temperature subcritical gas generating unit forming
development. a "fuel-heat-electricity-water-salt" five-effect integrated recycling system
with the comprehensive thermal efficiency increased from 30% to 81.5%.Jingtang Co.'s 100 MW Generating Unit
Controlling Energy Losses
Through technological and management innovation
The company strengthens the collaborative Jingtang Co.'s 100 MW generating unit improves power
management of the hot metal ladle operation generation efficiency and self-power supply rate and
process promotes the compact blast furnace reduces system carbon emissions.tapping and hot metal ladle alignment carries Technically: It implements automatic combustion power
out the prediction and dynamic control of hot
Qiangang Co. Jingtang Co. generation with variable flow and high-proportion blending
metal in transit accelerates the turnover of of converter gas into blast furnace gas improving the
hot metal ladles and reduces the temperature flexibility of gas use by the unit increasing the recovery of converter gas and reducing the
drop of hot metal. energy consumption of the converter process.Management:
℃ year-on-year year-on-year In accordance with the development requirements of centralized monitoring In 2025 Qiangang Co. achieved a 1.7 year-on-
℃ ℃ remote control and unmanned on-site for the energy system following the principle of year reduction in hot metal temperature drop 1.7 5.9 centralized control with similar professions and close interface connection it realizes
while Jingtang Co. achieved a 5.9℃ year-on-year the centralized monitoring of power generation and seawater desalination improving
decrease. management efficiency. The annual energy conservation is 61000 tonnes of standard coal
and the annual carbon emission reduction reaches 437000 tonnes.
2025 Shougang Co. Sustainability Report 37Clean Energy Energy-Conservation Publicity
The company actively responds to the "dual carbon" goals by expanding the application proportion Taking the National Energy Conservation Publicity Week "World Water Day" "China Water Week"
of renewable energy. The installed capacity of solar photovoltaic power reached 38.9 MW. In 2025 and other nodes the company carries out energy conservation publicity activities publicizes energy
solar photovoltaic power generation was 45 million kWh up 147.25% year-on-year raising the conservation concepts and knowledge through special lectures knowledge popularization online
share of clean energy to 2%. Green power procurement reached 1.998 billion kWh accounting for answering and lucky draws etc. guides all employees to participate in energy conservation actions
41.16% of purchased electricity. such as water and electricity saving and enhances energy conservation awareness.
The company explores the "long-term agreement" model for green electricity procurement
comprehensively considering national industrial policies green electricity resources electricity price
economy and carbon market and other factors to lock in green electricity resources. Shougang Group
signed a strategic cooperation framework agreement with Jingneng. The contracted green electricity
volume of Qiangang Co. and Cold-R Co. totals 945 million kWh and 160 million kWh respectively.Indicator Unit 2023 2024 2025
Solar Photovoltaic Installed Capacity MW 13.70 38.90 38.90
Solar Photovoltaic Power Generation MWh 15320 18220 44828
Green Electricity Procurement Volume Million kWh 916 1280 1998
Energy Emergency Management
Metrics and Targets
The company attaches great importance to energy safety management formulating annual energy
Taking energy conservation and carbon emission reduction as the main thread of ecological
emergency plans and organizing drills. In 2025 multiple special drills were conducted for scenarios
civilization construction Shougang Co. formulates short-term medium-term and long-term goals
such as energy medium leakage and extreme weather to strengthen response capabilities. We also
with the direction of improving energy utilization efficiency and reducing energy consumption.carried out supporting energy security training covering emergency disposal processes personal
protection skills risk identification points etc. to improve the energy security awareness and The company formulated a medium-term goal in 2021: by 2025 the comprehensive energy
emergency operation capabilities of all employees and build a professional team that "understands consumption per tonne of steel will be reduced by 2% compared with 2020 and the proportion of
safety can respond to emergencies and handle them". green electricity will reach more than 5% of the total electricity consumption; the long-term goal
is to continue to promote energy conservation and carbon emission reduction work continuously
Comprehensive Emergency Drill for Energy Medium Leakage Accidents improve energy utilization efficiency and strive to reduce the comprehensive energy consumption
per tonne of steel by 1.69% by 2030 as compared with 2025.The company has built an emergency management The company has established a regular tracking mechanism for the progress of goal completion
system characterized by "centralized leadership to ensure the steady implementation of various indicators. As of the end of the reporting period
unif ied command complete organizat ion the company's comprehensive energy consumption per tonne of steel decreased by 1.70% year-
comprehensive functions sensitive response and on-year completing the annual energy conservation goal; the comprehensive energy consumption
efficient operation". In June 2025 Jingtang Co. carried out an energy medium leakage per tonne of steel decreased by 6.24% compared with 2020 and the proportion of green electricity
emergency drill caused by a fuel station leakage. All functional departments and operation reached 12.74% of the total electricity consumption all completing the goals.areas performed their respective duties and cooperated with each other to complete
the emergency disposal process. The drill tested the practicality and operability of the Indicator 2025 Goals 2025 Results
emergency rescue plan verified the preparation of emergency rescue teams materials Comprehensive Energy
equipment and technologies and improved the emergency disposal capabilities for sudden Consumption per Tonne of Steel Reduce by 2% compared to 2020 Reduce by 6.24% compared to 2020
incidents.Proportion of Green Electricity Achieve over 5% of total electricity consumption 12.74% of total electricity consumption
38 2025 Shougang Co. Sustainability ReportWater Resources Utilization Qiangang Co. adopts "three-dry" processes and cascading water use models to reduce the intake of fresh water from the source. It completed 5 water-saving
projects implementing strict water quality indicator management for processes
Shougang Co. continuously improves its organizational structure for water resources management. with high fresh water consumption such as power generation and oxygen
The Energy Conservation Management Group is responsible for coordinating the company's Qiangang Co. production. By using partial desalted water to replace fresh water it optimized
water resources work. The Energy Department is responsible for water resources management water quality increased recycled water output and reduced industrial water
supervising and implementing the company's water use and conservation efforts. Each production consumption. It continues to promote the application of electrochemical scale
base and department is equipped with dedicated water resources management personnel to removal technology increasing the cycles of concentration from 2.5 to 4.0-5.0
reducing industrial water consumption by 20% to 25%.execute the company's water use and conservation arrangements.Relying on its coastal advantage Jingtang Co. strengthens the synergistic
In accordance with laws and regulations such as the Water Law and the Water Pollution Prevention management of "quantity" and "quality" in the water system carrying out work
and Control Law and combined with the actual situation of the enterprise the company has such as seawater leakage control seawater desalination production enhancement
Jingtang Co.formulated systems such as the Water Source Protection System the Water Supply and Consumption and wastewater resource utilization. It organized the annual maintenance and
Management Measures and the Cooling Water System Management Regulations. We have established cleaning of seawater desalination unit U5 and increased sintering steam heat
supplementation for U5 to improve desalinated water output.a water resources management statistics and accounting system to standardize the management
of water sources and ensure the safety of water supply for production and living in the company and Cold-R Co. established a strict three-level water-saving management network
surrounding areas. and built a digital water efficiency management system covering the entire
Cold-R Co. process to achieve real-time intelligent and refined management of the entire
The company adheres to scientific management rational planning efficient utilization and plant's water system. It actively explores water-saving technologies introducing
comprehensive governance of water resources. We reasonably select water sources strictly the MBR+OSA process to simultaneously purify wastewater and associated
take and use water according to plans and integrate indicators such as water use and water sludge achieving the reuse of high-quality reclaimed water.conservation into performance assessments to continuously improve water resources utilization In terms of water resources utilization the company's target is to reduce fresh water consumption
efficiency. The company has been repeatedly awarded titles such as "National Water Efficiency per tonne of steel by 1% by 2025 compared with 2020 and strive to reduce it by 3.44% by 2030
Leading Enterprise in Key Water Use Industries" "Beijing Water-Saving Benchmark Enterprise" compared with 2025. In 2025 the company's total water consumption was 4988.33 million m3 and
"Hebei Provincial Water-Saving Model Enterprise" and "Water-Saving Enterprise in Tangshan City." the fresh water consumption per tonne of steel decreased by 6.71% compared to 2020.Indicator Unit 2025
Annual Water Consumption Million m3 4988.33
Surface Water Consumption Million m3 17.90
Groundwater Consumption Million m3 24.70
Desalinated Seawater Consumption Million m3 22.62
Recycled Rainwater Consumption Million m3 0
Reclaimed Water Consumption Million m3 6.69
Tap Water Consumption Million m3 2.35
Recycled Water Consumption Million m3 4914.07
Water Recycled rate % 98.80
2025 Shougang Co. Sustainability Report 39Circular Economy Solid Waste Recycling
Centered on the management concept of "disposal value enhancement and leadership" Shougang
Shougang Co. practices the concept of circular economy adheres to the principles of reduction Co. promotes reduction and resource utilization uses advanced technologies to deepen the recycling
reuse and resource utilization and establishes a scientific and effective circular economy system. and utilization of solid waste and advances the construction of "Zero-Waste Group." In 2025 the
Starting from the full life cycle of product manufacturing the company continuously promotes company's solid waste recycled and utilized rate has reached 100%. Jingtang Co. obtained the
the efficient circular utilization of scrap steel and solid waste forming a new circular economy product evaluation certification for comprehensive resource utilization and successfully passed the
development model that features internal circulation within the enterprise regional industrial final inspection and acceptance of the National Circular Economy Standardization Pilot Program.collaboration and the integration of the city and the enterprise.Construction of "Zero-Waste Group"
Scrap Recycling
In July 2025 the Ministry of Ecology
Shougang Co. utilizes scrap steel resources with high quality stability and rationality. We are and Environment approved seven
committed to promoting the sustainable development of the industrial chain from a full life cycle units including Shougang Group
perspective. In collaboration with downstream customers such as Geely Group Volvo Haier as "Zero-Waste Group" pilots. With
Shougang Co. as the main body
and Zhongshan Green Guard the company has built a steel circular economy and closed-loop
Shougang Group became the first
recycling value system to jointly optimize the entire chain of steel production use and recycling
enterprise in the Beijing-Tianjin-Hebei region to pilot the construction of a "Zero-Waste
achieving efficient circular utilization of resources and promoting harmonious progress integrated Group." Driven by policy guidance and institutional innovation the company built a full-
development and collaborative carbon emission reduction of upstream and downstream industries. chain governance system of "source reduction - process circulation - end-of-pipe value-
In 2025 the company's scrap steel recovery rate was 100%. adding." Through the triple synergy of policy industry and technology it promotes the
minimization of general solid waste and hazardous waste generation full resource
utilization and standardized final disposal for the group-level enterprise.Shougang Co. · Zhongshan Green Guard 40% Traceable
The company achieved "point-to-point" transfer and disposal of solid and hazardous
Recycled Material Low-Carbon Project waste with Qiangang Co. and Jingtang Co. as the main disposal units. It built a cross-
regional cross-industry and cross-medium solid waste circulation network with other
By constructing a "production-consumption-regeneration" enterprises under Shougang Group. In 2025 Qiangang Co. received hazardous waste
closed-loop system with Zhongshan Green Guard Shougang from units such as Shougang Zhixin realizing the "point-to-point" directional utilization
Co. successfully developed a pickled low-carbon product exemption management of hazardous waste like cold-rolled sludge from Shougang Zhixin
for garden tools. This product achieves 100% recycling in its sintering process becoming a pioneer in the steel industry to implement this model.and utilization of scrap steel resources increasing the
scrap steel ratio in the steelmaking process to 40% with a
comprehensive carbon emission reduction of over 30%. It Qiangang Co. continuously promotes solid waste reduction and comprehensive
combines high hardness with high toughness extending the utilization. Through measures such as zero discharge of iron-containing resources
service life of terminal products such as gardening shears from the plant high-proportion pellet smelting technology in blast furnaces and
achieving "high performance and low carbon emissions" and reducing metal material blowing loss in steelmaking converters the output of
granulated slag and steel slag has decreased. It optimized the flow of deep-processed
filling a domestic gap for high-quality low-carbon emission Qiangang Co. products and improved product quality to enhance the solid waste digestion capacity
steel. The carbon footprint of this product has been certified by DNV marking international of sintering blast furnace and steelmaking processes promoting the return of slag
authoritative recognition of its carbon emission reduction performance. steel powder and ball-milled iron powder to production for reuse and producing solid
waste-based steelmaking cooling slag agents. In 2025 the comprehensive utilization
rate of solid waste was 100%.
40 2025 Shougang Co. Sustainability ReportQiangang Co.'s Sintering Homogenization Production Rotary Hearth Furnace Zinc Resource Recycling Technology
Line Put into Operation Treated iron- and zinc-containing dust with carbon reductants in flue gas to recover zinc and other
valuable elements achieving cascading utilization of metallurgical dust with an annual capacity of
In October 2025 the company's sintering homogenization production line commenced 300000 tonnes.operations with an estimated processing capacity of 165900 tonnes of secondary Development of All-Solid-Waste Cementitious Materials
resources in 2026. The line is capable of processing multiple types of materials—including Used solid waste materials such as slag steel slag and desulfurized gypsum to produce
cold-rolled sludge slag steel powder power plant sludge hot-rolled water treatment cementitious materials with a designed annual capacity of 1 million tonnes which can partially
sludge and emulsion residue—achieving full-scale utilization of secondary resources. replace traditional kiln cement reducing CO2 emissions by 0.5 tonnes per tonne of product.Subgrade Material
Qiangang Co.'s Power Sludge and Sleeve Ash Mixed
Material Return to Sintering for Utilization
Non-Fired Bricks Mineral Powder
Addressing the issues of power sludge filter cakes having no storage space and requiring
paid outsourcing as well as dust issues in steelmaking sleeve dust removal ash digestion
Qiangang Co. innovated technical ideas to carry out mixed material trials and industrial
experiments of power sludge and limestone slag. After mixing and screening in proportion Solid Waste
Low-Carbon
the components met the sintering requirements and the sintering process operated stably. Resource
Concrete Composite Powder
This model verified the feasibility of returning power sludge to the sintering process Utilization
achieving a "0 to 1" breakthrough in the solid waste digestion model. Products
Prefabricated
Jingtang Co. continuously promotes the circular utilization of solid waste in
Components
the steel process and collaborative utilization with industries such as building
materials and chemicals. Major solid waste resources such as water slag Low-Carbon Composite Filler
steel slag and iron-containing dust and sludge achieve full comprehensive
Qiangang Co.utilization. The seawater desalination project produces 95000 tonnes of fresh
All-Solid-Waste Cementitious Material
water daily and its byproduct concentrated brine (13 million tonnes per year)
is supplied to downstream enterprises in Caofeidian for reuse achieving linked
development. Jingtang Co.'s Application of Slag Micro-powder
Circular Utilization in Sintering Process In cooperation with Jinyu Group Jingtang Co. built a 6×600000-tonne granulated slag
Digested over 1 million tonnes of solid waste annually with 100% digestion of iron-containing solid fine grinding production line to produce slag micro-powder. As the main treatment method
waste. The proportion of steel slag added reached 6% leading the industry. for granulated slag it is widely used in cement building materials and other fields and
High-Efficiency Utilization of Purified Steel Slag has been applied in major national engineering projects such as the Hong Kong-Zhuhai-
Purified steel slag through rod milling ball milling and water washing then returned to Macao Bridge.steelmaking for reuse via briquetting.
2025 Shougang Co. Sustainability Report 41Innovation in Solid Waste Circular Utilization Technology Reducing Packaging Material Consumption
Shougang Co. continuously promotes technological innovation in solid waste circular utilization. Qiangang In accordance with the business needs of packaging quality and packaging material
Co. advanced research on integrated technology for selective reduction and resource utilization of management the company has formulated systems such as the Packaging Quality and Material
copper slag and steel slag carbonation technology. Jingtang Co. actively carried out product evaluation Management Regulations and the Steel Product Quality Marking Management Regulations to
certification for comprehensive resource utilization and multiple solid waste resource utilization conduct unified management of Qiangang Co. Jingtang Co. and Cold-R Co. Each base has
technologies won national and provincial metallurgical science and technology awards. refined and formulated special management requirements such as the Relevant Provisions on
I n cooperation with University of Science and Technology Beijing it promoted Packaging Materials the Technical Requirements for Packaging and Identification of Hot-rolled
research on integrated technology for selective reduction and resource Products the Procurement Standards for Auxiliary Packaging Materials the Product Packaging
utilization of copper slag developing full-component resource recovery Quality Inspection Specifications etc.Qiangang Co. technology for copper slag based on oxidative roasting dearsenization carbon
thermal reduction and magnetic separation for iron extraction and high-value Adhering to the principle of maximizing reduction the company promotes the greenization
utilization of tailings providing high-quality iron-containing raw materials for reduction and recyclability of packaging materials. On the premise of ensuring packaging safety
the enterprise. and protection quality it reduces the amount of packaging materials and environmental impact by
J ingtang Co. organized the formulation and revision of 4 national industry optimizing packaging methods packaging materials and coil weight structure. We adhere to the
and group standards such as Technical Specification for Recovery and Utilization use of green and eco-friendly materials for product packaging. All non-metallic materials used in
of Iron-containing Dust and Sludge in the Iron and Steel Industry and Low-
Jingtang Co. packaging meet requirements such as RoHS and suppliers of various materials provide at least Carbon Composite Filler; and completed 2 product evaluation certifications for one environmental protection test report such as RoHS every year.comprehensive resource utilization (cementitious materials and low-carbon
composite fillers) enhancing brand image and product credibility.Material Selection It is clarified that on the premise of ensuring product packaging quality and
reducing material usage a detachable packaging structure is designed to
facilitate recycling and reuse.Packaging According to the protection level of different packaging methods the
Classification company launches "general packaging recommendation" and "fine
and Grading packaging recommendation" packaging methods guiding customers to
choose lower-level packaging methods under the premise of meeting quality
requirements to reduce material consumption.In 2025:
Thickness and We have implemented thickness and width reductions for packaging materials
* Research and Application of Steel Slag Source Modification Reduction and Full Width Reduction
Resource Utilization Technology won the First Prize of the 2025 Metallurgical Science such as galvanized outer protective sheets plastic end protectors and both
and Technology Award. inner and outer steel corner guards to enhance resource efficiency.* High-Efficiency Circular Reconstruction and Utilization Technology and Demonstration
of Iron-containing Solid Waste in Integrated Steel Enterprises won the Third Prize of Packaging Material We use high-strength plastic plates instead of fiberboards and galvanized
the 2025 Hebei Provincial Metallurgical Science and Technology Award. Substitution plates in the inner circumference of steel coils to optimize customer
* Shortening the Initial Setting Time of Solid Waste-based Cementitious Materials won the packaging methods.First Prize for Excellent Management Results in the Hebei Metallurgical Industry.Recycling and
* "Technology and Application of Collaborative Development of Low-Carbon Multi- We recycle packaging materials such as rubber strips and have established
component Cementitious Materials from Metallurgical Slag" was selected for the Reuse dedicated steel strapping recovery points at the entrances of major
Catalog of National Advanced and Applicable Process Technology and Equipment for processes to collect and reuse strapping bands removed during the
Comprehensive Industrial Resource Utilization (2025 Edition). uncoiling stage.
42 2025 Shougang Co. Sustainability ReportBiodiversity Protection
Shougang Co. fully recognizes the importance of biodiversity strictly abides by relevant laws
and regulations and continuously pays attention to the harmonious development of the
ecological environment within and around the plant areas. During the project design stage the
company conducts biodiversity protection and land use assessments in accordance with relevant
requirements. During the project operation stage it continuously monitors the surrounding
ecological environment and actively carries out biodiversity protection work to reduce the impact of
production and operations on the ecological environment avoiding disturbance to wildlife habitats
soil erosion and deforestation.The company always regards green development as the lifeline of its survival and development
attaches great importance to the greening construction and green space maintenance of the plant
areas and aims to "build a forest-style factory" to create a green ecological park. Based on soil and
climate conditions the company selects appropriate plant species and emphasizes plant diversity
planting tree species such as French plane Chinese juniper Chinese scholar tree and goldenrain
tree. 100% of available green space has been greened creating a dense shade atmosphere where
every road has trees every step offers a view and people and the factory are immersed in the
scenery. The company has also strengthened the protection of wildlife inhabiting the plant areas
including species such as magpies sparrows pheasants white wagtails Siberian weasels
kestrels and butterflies.Qiangang Co. Jingtang Co.National Green Factory National Green Factory
National Greening Model Unit National Greening Model Unit
National Metallurgical Greening National Metallurgical Greening
Advanced Unit Advanced Unit
Hebei Province Garden-style
Advanced Unit
Cold-R Co.Outstanding Supporter of Nature Conservation
2025 Shougang Co. Sustainability Report 43Voluntary Tree Planting Activities
In April 2025 Qiangang Co. organized the 21st Voluntary Tree Planting Day and In April 2025 Jingtang Co. organized a voluntary tree planting activity with the
Environment Week activity with the theme "Full Responsibility Scientific Maintenance theme "Jointly Building Jingtang's Green Home and Sharing a Beautiful Ecological
and Jointly Building a Beautiful Shougang Co." More than 80 people including company Environment." More than 660 people including company leaders and employees
leaders and employee representatives participated and planted over 170 green plants participated and planted 1389 landscape arbor trees such as Chinese scholar trees and
such as golden ash and purple-leaf plum. In 2025 26200 m2 of green space planting cherry blossoms adding green vitality to the plant area.was completed further advancing the construction of the forest-style factory.
44 2025 Shougang Co. Sustainability ReportSocial Gathering Innovative Momentum
Building a Happy Ecosystem Together
Material Issues for Response
Innovation Ethics of Science and Technology Product and Service
Safety and Quality Equal Treatment of SMEs Due Diligence Data
Security and Customer Privacy Employees Rural Revitalization
Social Contributions
Key SDGs Addressed
Shougang Co. Cultivates new quality productive forces through
innovation continuously perfecting an open collaborative innovation
system and strengthening key core technology breakthroughs and
the transformation of scientific achievements. We deeply advance
digital and intelligent transformation accelerating the realization of
intelligent equipment digitalized management and smart decision-
making. Adhering to the concept of strengthening the enterprise
through quality we build a quality management and customer service
system covering the entire product life cycle forging comprehensive
"Manufacturing + Service" competitiveness. We seek to improve the
supply chain ESG management mechanism to build a safe robust
green and smart sustainable supply chain. Upholding a people-centric
philosophy we construct a friendly workplace and fortify the line of
defense for occupational health and safety. We actively practice social
responsibility promoting the integrated development of the enterprise
the city and the community.
2025 Highlights and Achievements
* Awarded the "4th Beijing Municipal Government Quality Management Award" * Jingtang Co. and Cold-R Co. recognized as "Excellence Level Intelligent Factories" by the MIIT (the
* Recognized as a "National Quality Benchmark" by the China Association for Quality First Batch)
* 100% coverage rate of ISO 45001 Occupational Health and Safety Management System certification
* Received 54 customer awards recognition for "Manufacturing + Service" continues rising * Awarded "Excellent Unit for Innovative Practice in 'Caring for Employee Happiness'"
* Shougang Zhixin selected into the "2025 Global Unicorn Enterprise List" * Youth Volunteer Service Team awarded as "Capital's Best Volunteer Service Organization"Innovation
Technological innovation is the core engine and primary competitiveness for the high-quality
development of Shougang Co. The company consistently anchors its direction toward high-end
high-efficiency intelligent and green development. Aiming to build an innovation ecosystem
characterized by open synergy standardized management and fruitful results the company
continuously breaks through key core technologies leads the upgrade of industry standards
and empowers the high-end leap of the industrial and value chains. This is achieved through
comprehensive measures such as improving the governance system clarifying strategic paths
strengthening R&D breakthroughs cultivating innovative talents and deepening industry-
university-research synergy. We provide solid material support for national major projects new
energy intelligent manufacturing and other fields fulfilling our corporate mission by practicing
the national "dual carbon" goals and fostering new quality productive forces.Governance
Technological Innovation Management System
Shougang Co. has established an open multi-level and high-efficiency scientific research and
innovation system. It has set up a well-structured technological innovation organizational system
with clear responsibilities and scientific rationality building an innovation ecosystem chain that
covers basic research key technological breakthroughs and platform construction. Vertically
a multi-level R&D framework of "one research institute with multiple R&D centers" has been Shougang Co. Jingtang Co.established comprising the Shougang Research Institute of Technology Qianshun/Jingtang
Technology Center the Manufacturing Department and the Operation Departments. The General High-tech Enterprise High-tech Enterprise
Manager's Office is responsible for reviewing the company's R&D and innovation strategies
goals and risks. The Research Institute of Technology is dedicated to exploring and practicing Beijing-level Enterprise Hebei Provincial Enterprise Technology Center
innovation systems and is responsible for the research and development of new products Technology Center Single Champion Enterprise in Manufacturing Industry of Hebei Province
technologies processes and materials; the Qianshun/Jingtang Technical Center focuses on Advanced Unit for Scientific and Technological Work in the China Steel
the R&D of cutting-edge products major processes and key equipment; the Manufacturing
Department and Operation Departments are responsible for on-site technical support and Industry during the 14th Five-Year Plan Period
implementing trial projects respectively. Horizontally innovation platforms such as joint
laboratories EVI user technology laboratories expert workstations and the Innovation Studio Cold-R Co. Shougang Zhixin
Alliance have been established forming an open innovation management system that deeply
integrates industry university research and application.High-tech Enterprise
Technology Innovation Philosophy High-tech Enterprise Selected into the "2025 Global Unicorn Enterprise List"
Beijing's "Specialized Science and Technology Reform Action Demonstration Enterprise"
Sophisticated Distinctive and by the SASAC
Innovative" SMEs National Manufacturing Champion Demonstration Enterprise in
Electrical Steel
Innovation Innovative Innovative Team Selected into the List of National
Ideas Environment Talent Collaboration Advanced Manufacturing Technology Innovation Demonstration Enterprise of Hebei Province
Enterprises for Three Technological Leading Enterprise of Hebei Province
Consecutive Years Hebei Provincial Enterprise Technology Center
Establish an Create an Innovative Cultivate Innovative Promote Team
Innovation Ideas – Environment – Talent – Training and Collaboration and "Leading Enterprise" in Hebei's Characteristic Industrial Cluster
Full-staff Innovation Provide Innovation Exchange Communication –
Opportunities Project Teams
46 2025 Shougang Co. Sustainability ReportScience and Technology Innovation Institutional Framework Shougang Co. Cold-R Co.
To ensure that technological innovation activities proceed in an orderly and efficient manner the
company has developed a series of management systems covering aspects such as technology National Intellectual Property Advantageous Beijing Intellectual Property Advantage Unit
project management and protection of technological achievements. These include the Technology
Project Management System the Technology Confidentiality Management System the Technology Enterprises Beijing Intellectual Property Rights
Achievement Management System and the Patent Management System. This forms a full- Beijing Intellectual Property Advantage Unit Demonstration Unit
process standardized management covering the whole chain from R&D project initiation R&D
implementation mid-term review and achievement acceptance to intellectual property protection Beijing Intellectual Property Rights Pilot
achievement transformation and incentive fulfillment.Organization
The company's Technology Project Management System clearly stipulates that all technology
projects must adhere to recognized principles and standards of scientific ethics. Both project
initiation demonstrations and concluding evaluations must undergo ethical reviews. Furthermore Shougang Zhixin
the company emphasizes on enhancing the ethical and moral qualities of its technical personnel
by strengthening training supervision and establishing violation handling mechanisms thereby
ensuring that all research activities meet legal regulatory and ethical requirements. Acquired Intellectual Property Compliance Management System Certificate
Intellectual Property Rights Management
The company attaches great importance to the management and protection of intellectual property
and respects the achievements of others' intellectual property rights. We have established a
vertical intellectual property rights management system forming an independent intellectual
property rights management pattern that reserves core technologies in the form of patents and
technological secrets. The company's Intellectual Property Rights Management Leading Group
serves as the primary leadership body for intellectual property rights management while the
Qianshun Technical Center handles patent management and the Manufacturing Department
oversees the management of technological achievements. Together these bodies are responsible
for the entire process of intellectual property rights creation utilization protection and operation.The company complies with the Patent Law the Trademark Law and the Copyright Law among other
relevant regulations and continuously improves the intellectual property management system and
institutional construction. We have built a list-based management mechanism with clear rights
responsibilities and formulated management systems such as the Patent Management System the
Technology Confidentiality Management System and the Standardization Management System. These In 2025 in the 11th International Invention
systems systematically standardize the full-process management of patent excavation application Exhibition · "Belt and Road" and BRICS Skills
maintenance and utilization as well as matters such as technical secret identification transfer D eve lo p m e n t a n d Te c h n o lo g y I n n ova t i o n
Competition the company won 13 gold awards
and supervision and inspection ensuring the orderly progress of intellectual property compliance
20 silver awards and 49 bronze awards. Jingtang
work. In 2025 the company further revised the Patent Management System to continuously Co . was awarded the "Best Organ iza t ion
consolidate the management foundation. Additionally the company regularly conducts training Recommendation Award."
on intellectual property rights standards and comprehensive capability enhancement and actively
participates in advanced intellectual property rights training organized by regulatory authorities.This commitment has helped to raise overall awareness of intellectual property rights protection
foster a strong culture of respect for intellectual property rights and improve management
standards.
2025 Shougang Co. Sustainability Report 47Strategy
Shougang Co. adheres to innovation-driven development taking high-end high-efficiency intelligent and green development as its direction. We focus on the development of cutting-edge technologies and
processes worldwide strengthen the development of independent innovation capabilities accelerate the transformation and application of scientific and technological achievements drive comprehensive
innovation with technological innovation and promote high-quality development with high-level technological innovation. The company fosters new quality productive forces leads the industrial and value
chains toward the high end and assists in the optimization and upgrading of the industrial structure during the process of Chinese-style modernization.Risks and Opportunities Management
Shougang Co. has integrated the R&D and innovation risk management process into its daily risk management process. To precisely prevent and control technological innovation-related risks such as
uncertain R&D results technology iteration and talent retention and to efficiently seize market opportunities such as the growing demand for green low-carbon and high-end products the company
focuses on four major areas: efficient manufacturing high-quality manufacturing intelligent manufacturing and green manufacturing. We continue to strengthen our "Technological Innovation + R&D"
capability. By strengthening full-cycle control of science and technology projects leading industry development with standards cultivating high-end innovative talents improving R&D infrastructure
deepening industry-university-research-application synergy and building industry exchange platforms the company not only builds a firewall against innovation risks but also activates new momentum for
technical breakthroughs providing solid material support for national major projects and industrial chain upgrades.Potential Risk / Opportunity Description Type Business and Financial Impact Time Dimension Response Measures
Strictly control the whole life cycle management of science and
R&D project failure or product iteration delay leading to the technology projects. Create an innovative environment and intensify the
Uncertainty in R&D Achievements Risk precipitation of pre-invested funds failure to realize returns Long-term cultivation of leading talents in technology and skills. Actively promote
loss of market opportunities and drag on profit margins. collaborative innovation among industry university research and
application.Loss of core technological advantages erosion of market share Strengthen the promotion of technological confidentiality. Sign
Leakage of Technological Achievements Risk due to rapid imitation by competitors depreciation of pre-R&D Short & investment value and potential intellectual property litigation medium-term confidentiality agreements with technical personnel. Identify
and increased related costs. confidentiality matters and reward project team members accordingly.Stagnation of R&D progress and gaps in key technologies will Establish an information management system for technological
Loss of Technological Talent Risk not only require bearing high talent recruitment and training Long-term innovation to platformize R&D data ensuring continuity in the R&D costs but also lead to a decline in enterprise value due to the process and mitigating the impact of unexpected events such as the
loss of core technologies affecting financing and cooperation. loss of key R&D personnel.Depreciation of existing technologies and products decline in
market share due to customer loss accelerating depreciation Lead steel industry technology development by continuously increasing Rapid Pace of Technological Upgrading and Risk of fixed assets impairment of inventory backlogs and the need Long-term R&D investment. Actively host or participate in steel industry exchanges Replacement for continuous capital investment in technological upgrades to to stay informed on strategic holistic and forward-looking major
maintain competitiveness. issues.Can seize market share by expanding green steel production
Rapid Growth in Downstream Demand for Green capacity bind high-quality downstream customers to enhance Focus on the downstream user and the full industry chain trends
Steel Opportunity brand influence and the premium capacity of green steel Medium & long-term toward lightweight high-end and green products and actively develop
products will drive revenue and profit growth. specialized green steel products.Promote product structure upgrading to get rid of
Increased Demand for High Value-added and homogeneous competition establish technical barriers and
Boost original innovation efforts to cultivate debut products debut
Differentiated Steel Products Opportunity the high profit margin of high-value-added products will Long-term
processes and debut equipment. Enhance employees' technological
optimize the income structure enhance the enterprise's anti- innovation capabilities and R&D levels through expert training sessions
cyclical capacity and improve the overall profitability. a series of activities and increased R&D incentives.
48 2025 Shougang Co. Sustainability ReportKey R&D Breakthroughs Multiple Breakthroughs
Shougang Co. has established an innovation risk prevention and control mechanism conducting
Built the world's first specialized production line for electrical steel for new
pre-assessment mid-term monitoring and post-review of the technical feasibility market
energy vehicles.prospects and financial risks of R&D projects to ensure the orderly conduct of innovation activities.In 2025 more than 200 research and development projects were carried out covering multiple
Built the world's first specialized production line for 100% ultra-thin specifications
fields such as new materials new processes green and low-carbon and intelligent manufacturing
and high magnetic induction oriented electrical steel.technologies driving the industrial chain toward intelligent green and integrated directions.Shougang Zhixin focused on the field of humanoid robots and achieved the global debut of ultra-high
magnetic induction non-oriented soft magnetic material. Compared with conventional products the Built the world's first multi-mode fully continuous casting and rolling line (MCCR).torque is increased by 1.6% and iron loss is reduced by 27% effectively meeting the demand for high
torque density and high power density in frameless torque motors for humanoid robots filling the
domestic gap for ultra-high magnetic induction non-oriented soft magnetic materials. Built the world's first set of independently developed and integrated six-stand cold
continuous rolling mill.Addressing key challenges that constrain national development and security the company actively
carries out independent and collaborative breakthroughs participates in national key R&D programs Built the nation's first independently integrated new-generation localized annular
and provides independent material supply and technical protection for national major projects. furnace with 100% independent intellectual property rights.In 2025 participated in 9 national key R&D programs. High-proportion pellet smelting technology achieved high-efficiency and low-
Took the lead in the Beijing-Tianjin-Hebei Participated in projects such as the consumption blast furnace smelting.comprehensive environmental governance project "Demonstration Project for Flexible Interaction
"Multi-medium Collaborative Pollution Control between Power Grid and Low-Carbon Energy- Developed third-generation ultra-high-strength automotive sheet manufacturing
Technology System and Application Demonstration Using Steel Industry Cluster"
for Metallurgical Industry" in 2025 technology.
2 7 national vertical projects (Various programs national major science and technology and fund projects approved and established by Developed high-efficiency preparation technology for tinplate wide and ultra-thin
projects national science and technology authorities or low-carbon steel strips.institutions)
2025 Shougang Co. Sustainability Report 49Automotive Sheets Tinplate Series Products
The company's automotive sheets possess the capability to provide complete vehicle supply and The company's tinplate series products adopt the world's first high-efficiency
technical services forming a product series characterized by outer panels high strength and zinc- preparation process for wide and ultra-thin low-carbon steel strips. The thinnest
aluminum-magnesium coatings. It has launched products such as DH steel UF steel dual-phase
high-strength steel (DP) and high yield-to-tensile ratio high-hole-expansion complex-phase steel thickness for single cold rolling is 0.09 mm and for double cold rolling is 0.07 mm
as domestic debuts. The company presided over the drafting of 6 national standards for automotive filling gaps at home and abroad. Products are applied in various fields such as
steel. Two products including the new generation of easy-stamping and corrosion-resistant zinc- food cans beverage cans and electronic components and were successfully made
aluminum-magnesium coating lead the development of automotive steel and promote common into cultural and creative products such as the "Cicada Wing Steel" postcards for
progress in the industry. the Beijing Winter Olympics and postcards for the 20th National Congress of the
Capable of producing Full coverage below Full coverage below Batch supply of Automotive outer CPC. In 2025 Jingtang Co.'s food-grade tinplate was selected as one of the "Top
continuous annealing 780 MPa. 9 8 0 M P a ; t r i a l zinc-aluminum- panels have the
10 Flagship Products" in the steel field of Hebei Province.
and bell-type furnace production of hot- m a g n e s i u m capability for full-
annealing products forming products automotive outer body supply.with strength below successful. panels achieved.
300 MPa.
20112014201620212025
Electrical Steel
The company's electrical steel consistently adheres to a product positioning of high-end high-efficiency
and green environmental protection. Through continuous technological innovation it has built a high-
end product matrix of over 160 items covering strategic emerging fields such as new energy intelligent
manufacturing and UHV power transmission and distribution with 16 being global debuts.Electrical steel products for new energy vehicle drive motors can meet the needs of
different types of new energy vehicles such as commercial and passenger vehicles. Product
applications cover all global and domestic leading new energy vehicle enterprises; one in
every three new energy vehicles in China is equipped with a "Shougang Core."
Oriented electrical steel products cover all UHV DC and AC transmission fields firmly ranking
in the first tier of global transformer material suppliers. Products are applied in national
major projects such as the Baihetan Hydropower Station and Wudongde Hydropower Station.Non-oriented electrical steel has continuously consolidated its leading advantage in the
field of variable-frequency home appliances becoming a strategic partner for well-known
domestic and foreign home appliance enterprises.In 2025 Shougang Zhixin electrical steel was selected as one of the "Top 10 Flagship Products"
in the steel field of Hebei Province by the Department of Industry and Information Technology of
Hebei Province; non-oriented electrical steel for new energy was rated as one of the top ten leading
products of the "14th Five-Year Plan" in the Chinese steel industry.
50 2025 Shougang Co. Sustainability ReportStandards Leadership
0.1 mm Ultra-low Iron Loss Electrical Steel Helps New
Energy Vehicle Enterprises Break the Global Electric Shougang Co. always insists on leading with standards. Focusing on areas such as product production
Vehicle Speed Record technology green and low-carbon energy saving and environmental protection and intelligent
manufacturing we lead or participate in the formulation and revision of standards guiding the
The world's first 30000-rpm high-performance motor equipped in the BYD Yangwang development direction of steel product production technology and green environmental protection
U9 engineering test vehicle selected Shougang's 0.1 mm ultra-low iron loss electrical technology.steel as the core material breaking the limitations of traditional electrical steel on In 2025 the company participated in the formulation and publication of 46 standards at various levels
motor energy consumption. Compared with the 0.2 mm electrical steel widely used in serving as the lead developer for 8 of them.the industry the iron loss of this product at a frequency of 1000 Hz can be reduced by
39%. It combines excellent characteristics of low iron loss high magnetic induction
and high strength providing powerful material empowerment for high-quality and 10Items 1Item 4Items 31Items
high-performance main drive motors. The test vehicle successfully achieved a top
speed of 472.41 km/h at the ATP testing ground in Germany breaking the global National Standards Local Standards Industry Standards Group Standards
electric vehicle speed record.Participating in the Formulation and Revision of National Standards
Iron loss reduced by 39%
We participated in the formulation of national standard Technical specifications for the thermal
steaming of molten steel (GB/T 45964-2025) as well as the revision of national standards Slag
agglomerate of LF refining furnace for steelmaking (GB/T 30900-2025) and Scrap steel from slag for
steelmaking (GB/T 30898-2025). These three national standards focus on the resource utilization
of bulk industrial solid waste like steel slag. Through systematic research and standardized
compilation they established unified technical requirements and specifications promoting the
closed-loop circulation and efficient reuse of steel slag within the steel production process. This
assists in the large-scale and standardized "turning waste into treasure" of industrial solid waste
continuously improving resource utilization efficiency and green development levels and providing
High-Performance Non-Coated Oriented Electrical Steel solid standard support for the industry's low-carbon transition and circular economy development.In 2025 to promote the localized replacement of key materials and respond to the
development needs of the new motor industry the company successfully developed
0.27 mm high-performance non-coated oriented electrical steel with balanced surface
quality magnetic properties and structural performance achieved stable batch supply.The performance of this ultra-thin strip reached the international advanced level and
can be used for the manufacturing of UHV anode saturated reactors. The new energy
drive motors made from it rank among the world's leaders providing new material
support for the R&D of the next generation of new energy drive motors in downstream
industries.
2025 Shougang Co. Sustainability Report 51Scientific and Technological Talent Cultivation Shougang Scientists 23 Chief Technical Experts 57 Chief Engineers 16 Shougang Craftsmen 13
Shougang Co./Jingtang Co. Craftsmen and 29 Chief Skill Experts all of whom provide first-class
talent support for technological innovation.To reduce the uncertainty of R&D results and the risk of technological talent loss Shougang Co.continuously creates an innovative atmosphere provides innovative conditions and optimizes By the end of the reporting period the company had built 132 Employee Innovation Studios of
innovation mechanisms. It has established evaluation fault-tolerance incentive and cultivation which 23 are recognized as Beijing municipal-level and demonstration innovation studios 7
mechanisms that match technological innovation forming a vibrant technological innovation are recognized as industrial-level innovation studios and 10 are recognized as demonstration
atmosphere. innovation studios in the national machinery metallurgy and building materials industry. In 2025
a total of 25 "Five-Star" Innovation Studios 48 "Four-Star" Innovation Studios 53 "Three-Star"
* Create an innovative atmosphere and enhance employees' innovation awareness by Innovation Studios and 10 Excellent Innovation Studios were evaluated.organizing university professor forums Innovation Festivals and employee invention contests;
* Leverage innovation platforms such as expert workstations employee innovation studios
and youth innovation workstations to carry out innovation breakthrough projects and cultivate
high-end R&D teams;
* Deeply discuss technical problems promote the transformation and application of innovative
results and accelerate the replication and promotion of excellent innovative results through
continuous series of activities such as Qianshun/Jingtang Technical Center product and 25 48 53
process technology exchange meetings "Technical Salons" and technological innovation "Five-Star" "Four-Star" "Three-Star"
forums; Innovation Studios Innovation Studios Innovation Studios
* Enhance employees' technological innovation capabilities and cultivate learning-oriented
knowledge-oriented skill-oriented and innovation-oriented employees by organizing projects
such as the "Technological Innovation Youth Training Camp" "Great Craftsman Lecture
Series" "Innovation Grand Lecture Series" training classes for backbones of employee
innovation studios and innovation backbone training camps;
* Stimulate innovation vitality through an innovative differentiated salary incentive mechanism
setting up special innovation awards such as Shougang Scientist Awards Shougang
Craftsman Awards R&D Project Awards Technology Achievement Awards and Small-Scale
Competition Awards.The company places great importance on cultivating leading talents in technology and skills and
boasts an industry-leading R&D team with over 100 leading technical experts. Among these are 6
16
Shougang Craftsmen 6
Shougang Scientists 29 2025 Shougang Co. Technological Innovation Youth Training Camp
Scientific and
57 Chief Skill ExpertsTechnological Talents
Chief Engineers
23
Chief Technical Experts
13
Shougang Co./Jingtang Co. Craftsmen Jingtang Co. Technological Innovation Forum Jingtang Co. Innovation Backbone Training Camp
52 2025 Shougang Co. Sustainability Report15 1Item 1Item 2Items
invention patents received First Prize in the Second Prize Second Prizes for
In 2025
1 4 the 2025 Employee Innovation Beijing Innovation for Independent Excellent Innovation Invention Patent Promotion Method Competition Innovation Achievements of from the Beijing Municipal and 2025 China Achievement "Craftsmen Shining in
employee won the employees won the title of "Craftsman in Federation of Trade Unions Innovation Method of Capital Beijing" Employees
title of "China's the National Machinery Metallurgy and Competition Employees
Master Artisan" Building Materials Industry"
Abundant Employee Innovation Achievements Jing Xiaoxing Innovation Studio
In 2025 Since its establishment in 2010 the Jing Xiaoxing Innovation
Studio led by "Shougang Model Worker" Jing Xiaoxing
Innovation Achievements in the National Machinery Metallurgy and Building Materials Industry has led 24 backbones in continuously carrying out water
treatment indicator construction quality improvement
technical breakthroughs and skill talent cultivation for energy
5 8 16 81 systems. It has accumulated 62 national patents completed Items Items Items Items 56 projects and published 43 papers. It has successively won
Special Prizes First Prizes Second Prizes Third Prizes the titles of Shougang Group Excellent Innovation Studio and Tangshan Model Worker and
Craftsman Innovation Studio and was rated as a Beijing industrial-level innovation studio
and a Beijing municipal-level innovation studio.The First National Employee "Cultural Creativity Position The Jing Xiaoxing Innovation Studio team won the
Innovation and Management Efficiency" Competition First Prize in the final of the 2025 Beijing Innovation
Method Competition and 2025 China Innovation
Method Competition (Beijing Division) with the
9 13 6 project "Improving Slag Grabbing Efficiency of Swirl Items Items Items Pit Grab Based on TRIZ Theory."
First Prizes Second Prizes Third Prizes
The 6th Metallurgical Youth Innovation and Scientific Research Infrastructure
Creativity Competition Shougang Co. attaches great importance to the construction of technological R&D hardware
facilities. The company has purchased R&D instruments and equipment such as ultrasonic
flaw detectors and scanning electron microscopes and established a fully automated analysis
2 3 3 2 center to robustly support the development of new products and processes. In addition to further Items Items Items Items standardize the process management of R&D projects the company has created an information
Special Prizes First Prizes Second Prizes Third Prizes management system for technological innovation characterized by its efficiency speed and
traceability which enables the efficient management of the entire R&D process and data sharing.Qiangang Co. Jingtang Co. Cold-R Co. and Shougang Zhixin have all been certified by national
laboratories (CNAS).
2025 Shougang Co. Sustainability Report 53Industry-University-Research-Application Cooperation Industry-University-Research-Application Platforms
Shougang Co. actively deepens industry-university-research-application collaborative innovation
continuously strengthens research on overall fundamental and forward-looking process Joint Laboratories
technologies gives full play to the collaborative innovation role of joint R&D platforms and
promotes technological progress and industrial upgrading in the steel industry. In collaboration with universities research institutions and downstream users the company has established
30 joint laboratories. These laboratories carry out research on global basic and forward-looking process
technologies and strengthen technological breakthroughs in fields such as new materials high-end
Cooperation with Universities equipment manufacturing metallurgical building materials and low-carbon environmental protection.In 2025 Shougang Co. established a joint laboratory with Geely Auto focusing on advanced materials
The company actively deepens its cooperation with universities such as Tsinghua University cutting-edge technologies and processes promoting the promotion and application of cold-rolled ultra-
Beijing University of Science and Technology and Northeastern University jointly establishing high-strength steel hot-forming steel and corrosion-resistant materials for chassis and jointly tackling
research centers laboratories and expert workstations to achieve resource sharing and technical problems. Jingtang Co. co-built a metal packaging material joint laboratory with Jianyang Jiamei
complementary advantages. Through project collaborations technical exchanges academic Metal Printing Can Making Co. Ltd focusing on key areas such as new material development and corrosion
interactions and specialized competitions such as "Leading by Example" challenges the resistance improvement for food and beverage cans.company harnesses collaborative innovation cultivates an innovative talent pool accelerates
the transformation of research outcomes into practical productive force and promotes the EVI User Technology Laboratories
deep integration of the education innovation and industrial chains.These laboratories are designed to offer comprehensive service capabilities along the entire value chain -
from material selection and customer product design to iron core processing and motor testing. Shougang
Collaboration with Downstream Users
Zhixin's New Energy Vehicle Motor Laboratory has obtained CNAS certification making it the only enterprise
in the China steel industry equipped with both performance testing and inspection qualifications for new
The company along with its partners has jointly established cross-industry cross-regional energy vehicle motors.and cross-enterprise laboratories and Innovation Studio Alliances and organized events such
as product technology forums "Shougang Day" and technology exchange days. We have set Expert Workstations
up joint projects to continuously deepen technical cooperation promote collaborative technical
breakthroughs and advance key projects. Leveraging technological innovation collaborative The company has established expert workstations and
breakthroughs and process innovations the company achieves comprehensive and multi- scientist workstations including those of Wu Shengli Wang
angle early involvement and efficient communication jointly overcoming key strategic Xinhua and Kang Yonglin focusing on technologies such
challenges in new steel materials that restrict the development of the industry chain and as ironmaking steelmaking rolling material development
thereby supporting the upgrade of the entire industry chain. low-carbon initiatives and environmental protection. These
stations carry out scientific research breakthroughs reserve
cutting-edge product and process technologies strengthen
Hydrogen Pipeline Steel high-level talent cultivation and optimize scientific research and technical organization management systems. In 2025
the Guo Liwei Expert Workstation was established. Expert Workstation
Jingtang Co. successfully developed a full series of hydrogen pipeline steel (B/X42/X52/X60/
X65MH) breaking through 6 key technical bottlenecks such as hydrogen embrittlement Innovation Studio Alliances
damage and low-temperature toughness and building a complete product matrix covering
multiple steel grades and application scenarios. The company has 12 innovation studio alliances. Jingtang Co.has formed 7 cross-industry and cross-regional innovation
During the R&D process it innovatively adopted the "internal synergy + external linkage" alliances and 18 internal innovation alliances. Through
model linking units such as the Research Institute of Technology and the Marketing collaborative innovation across fields and enterprises technical
Center and uniting upstream and downstream forces of the industrial chain such as pipe talent and industrial resources are effectively integrated
manufacturing enterprises hydrogen energy users and scientific research institutes further strengthening user technical services promoting
to form an integrated industry-university-research-application breakthrough force. The professional crossover knowledge complementarity and
product possesses excellent resistance to hydrogen embrittlement high strength and collaborative innovation in the industrial chain and improving
toughness and welding performance suitable for high-pressure pure hydrogen/hydrogen- the overall competitiveness of the supply chain. In 2025 the
blended transmission scenarios providing solid material support for the key "cross- company formed the Wang Guiyu/Gao He · Qiusuo Innovation Innovation Studio Alliance
regional transmission" link of China's hydrogen energy industry. Studio Alliance and the Guo Yuming · Wen Anyi Innovation Studio Alliance with Shougang Shuigang.
54 2025 Shougang Co. Sustainability ReportIndustry Communication
As a leading enterprise in industry technological innovation the company is an important member unit of organizations such as the China Iron and Steel Association the Chinese Society for Metals the
Beijing Society of Metals and the China Green Chain Initiative Alliance. We actively participate in or host various industry association meetings and professional forums to build communication and exchange
platforms understand the latest industry dynamics and development trends provide service support and communication/collaboration opportunities for industrial chain enterprises and contribute to the
transformation upgrading and sustainable development of the industry.Plate Energy Steel Product Symposium Shougang Zhixin Hosted the IEC/TC68 Working Group
Annual Meeting
In July 2025 the Shougang Plate Energy Steel Product Development Symposium was held
in Qingdao focusing on industry-leading technologies market trends and development In October 2025 Shougang Zh ix in
directions. Four new energy steel products were released: high-grade acid-resistant hosted the annual meeting of the IEC/
pipeline steel ultra-high-strength hydropower steel high-strength low-carbon wind power TC68 (International Electrotechnical
steel and steel for mobile pressure vessels. Commission Technical Committee on
Magnetic Alloys and Steels) working
At the meeting Jingtang Co. delivered a keynote report titled "Inheriting the Shougang
groups. Industry experts from more than
Spirit and Continuing the Sheet and Strip Culture." The company adheres to the concepts
ten countries participated in "online +
of innovation-driven development and premium manufacturing to create five major offline" formats. The meeting focused
advantages: "product quality cost service and technology." It provides "more efficient on d iscuss ions regard ing mul t ip le
more durable and greener" products and integrated application scenario services international standards for magnetic
for national energy construction striving to build plates into Shougang's fourth major materials. Simultaneously Shougang
strategic product. Zhixin proposed adding standards for
ultra-thin oriented electrical steel series
products of 0.18 mm and 0.20 mm and
adding certain new energy steel grades
and mechanical property standards for
non-oriented electrical steel.Hosting this meeting is recognition from
the international organization of Shougang
Zhixin's technical strength and it marks a
role change from "follower" to "setter" in
the field of high-end magnetic material standards enhancing technical voice and global
industrial influence.In the future Shougang Zhixin will continue to promote the connection and mutual
recognition of domestic technology with international standards assist in industrial chain
upgrading and contribute Shougang's wisdom and responsibility to global manufacturing
and green low-carbon development.
2025 Shougang Co. Sustainability Report 55Metrics and Targets
The company has achieved numerous scientific research results. In 2025 5
In terms of technological innovation Shougang Co.'s overall development goal is to make products were global and domestic debuts and 2 processes were first-of-their-
technological innovation its primary competitive advantage gradually improve the technological kind. By the end of the reporting period the company had a cumulative total of
innovation system and steadily enhance management capabilities. To achieve this goal the Scientific more than 410 key core technologies and 61 debut products 9 of which were
company sets specific annual targets and continuously tracks results through monthly business Research global debuts; 11 first-of-their-kind processes 10 of which were global firsts; and
analysis meetings monthly management meetings weekly quality meetings and benchmarking Results 4 sets of first-of-their-kind equipment 1 of which was a global first.analyses thereby ensuring the completion of its annual objectives. In 2025 the company completed
all technological innovation targets.Target Unit 2025 Goals 2025 Results The company's patent quantity and quality have achieved a dual leap. In 2025
Actively respond to national new 1015 patents were applied for including 674 invention patents; 469 patents were
energy policies and promote Output of High-End 10000 Leading Products tonnes 900 1551 granted including 206 invention patents. By the end of the reporting period the high-end product development
Patents company had 4261 valid patents.Shorten the R&D cycle and Proportion of EVI
reduce R&D costs Output % 20 23.8
Newly Launched
Debut Products Item 3 5
Maintain a certain ratio and
continuous R&D investment Proportion of R&D
investment to % 3 4.66
operating revenue The company has won multiple national provincial and industry awards. In 2025
we won 7 Metallurgical Science and Technology Awards including 2 First Prizes 3
Number of Patents
Strengthen the promotion and Granted PCS 350 469
Second Prizes and 2 Third Prizes; won 3 Hebei Provincial Science and Technology
application of R&D achievements Progress Awards including 1 First Prize 1 Second Prize and 1 Third Prize; and
to drive overall technological Awards
progress in the steel industry Number of Invention PCS 100 206 won 1 Second Prize of the Beijing Science and Technology Award.Patents Granted
In the future Shougang Co. will keep in mind the
mission of strengthening the enterprise to serve
the country. Guided by new quality productive
forces we will focus on the cutting-edge needs
of industrial chain development collaborate with
upstream and downstream enterprises to carry out
joint breakthroughs and work together with the
upstream and downstream enterprises to build a
new industrial ecosystem contributing more power
to the realization of the "dual carbon" goals and the
creation of the "Shougang Brand."
56 2025 Shougang Co. Sustainability ReportIntelligent Manufacturing
Shougang Co. takes digitalization and intelligentization as its engine actively applying
information and intelligent technologies such as big data cloud computing artificial Intelligent Equipment
intelligence (AI) and 5G. These technologies are fully integrated into steel smelting
corporate operations product services and supply chain collaboration. By promoting Management and
automation digitalization networking and intelligence of key business processes Control Digitalization
the company creates new quality productive forces and shapes new momentum and
advantages for its development.Digital and Intelligent Transformation Intelligent Decision-Making
Intelligent
In 2025 Shougang Co. continued to advance the 2024-2026 Shougang
Manufacturing
Co. Digital Transformation Action Plan focusing on enhancing basic
technical capabilities manufacturing coordination capabilities operation
management and control capabilities and management service
capabilities. This helps achieve higher-end quality more efficient
production optimized costs better services and a more flexible supply
chain.Currently the company has achieved its phased goals as planned
and made significant progress in multiple dimensions. It has realized
intelligent quality management intelligent production planning
automated production processes digital equipment maintenance and Digital Infrastructure
unmanned hazardous positions implementing projects such as intelligent
integrated control intelligent warehousing and digital factories.AI Large Model Agents
2025 Shougang Co. Sustainability Report 57Intelligent Equipment Digital Infrastructure
The company focuses on 3D positions to promote the construction of intelligent robots
automatic stacking and reclaim machines and unmanned overhead cranes. Through Jingtang Co. achieved 5G private network coverage across the entire plant area with 100%
innovations such as automatic belt inspection automatic etching of coil identification numbers 5G coverage in open-air plant areas. Meanwhile the company introduced technical means
automatic drossing in steelmaking (KR) and automated stacking and reclaim machines such as data encryption masking and leak prevention to continuously improve network
and overhead cranes production efficiency and operational stability have been significantly
enhanced. Our digitalization rate for production equipment has exceeded 91% with 51 security protection capabilities for 5G and virtualization providing a solid network foundation
processes now featuring 'one-button control.' Furthermore we have deployed 242 sets of and security guarantee for digital transformation.industrial robots established 27 unmanned intelligent storage areas and deployed 26 digital
employees. In addition by integrating smart equipment and scenarios on the production line
the company has effectively addressed core issues in production processes product quality
production efficiency and production costs thereby systematically advancing the construction AI Large Model Agents
of smart production lines and further improving production stability and product quality.The company has actively promoted the in-depth integration of artificial intelligence
technology with its business operations and established a four-layer architecture of
Management and Control Digitalization "computing power + models + platform + scenarios". By the end of the reporting period
Adhering to a "full-domain and full-volume data" mindset the company deeply integrates more than 20 large model agents had been successfully launched covering multiple typical
new-generation information technologies such as big data and intelligent algorithms into application scenarios including regulatory expert consultation contract review safety law
production and operation management building a precise management and control center and regulation identification AI image hazard detection intelligent supply chain coordinated
based on intelligent systems. By optimizing multi-process synergistic dynamic scheduling replenishment schedule order review intelligent production document generation and
for medium and heavy plate production lines and building a smart logistics management and equipment fault diagnosis. These have been widely applied in production control regulatory
control platform the company has comprehensively improved its intelligent manufacturing
capabilities and overall production and operation levels. The digital performance platform management contract review safety operation equipment maintenance and other fields.built by the company has achieved multi-level management root cause positioning problem Large model agents have enabled more reliable production decision-making more accurate
analysis and closed-loop management of performance indicators making production real-time analysis of production links more efficient retrieval of corporate regulations more
and operation data "visible accurate and manageable" providing strong support for fine robust contract compliance review and "early detection and early rectification" of potential
management of the enterprise. safety hazards comprehensively improving operational safety and management efficiency.Intelligent Decision-Making
To advance a data-driven business management system the company has systematically
constructed business decision-making models. Through standardized data aggregation and
processing we have consolidated the foundation for data application and driven a profound
transformation of the management model from "experience-driven" to "data-driven". In
2025 focusing on pain points in core businesses the company successfully developed and
launched 38 intelligent decision-making models covering key scenarios such as sales Schedule Contract Safety Laws and AI Photo Equipment
logistics production and operation and process control. Among them the automatic analysis
model for spot availability of pickled products has achieved cost reduction and efficiency Order Review Regulations Identification of Fault
improvement through precise control and dynamic early warning; the sales logistics cost Review Hidden Dangers Diagnosis
differential analysis model has effectively optimized resource allocation and significantly
enhanced operational efficiency. By the end of the reporting period the company has
completed a total of 110 business decision-making models which comprehensively improved AI Large Model Agents
the foresight and accuracy of business decision-making and injected digital momentum into
the high-quality development of the enterprise.
58 2025 Shougang Co. Sustainability ReportShougang Co. Cold-R Co.
Advanced Level Intelligent Factory in Beijing (First Batch) World Economic Forum "Lighthouse Factory"
Excellence Level Intelligent Factory of the MIIT (First Batch)
Advanced Level Intelligent Factory in Beijing (First Batch)
Jingtang Co.Top Ten Application Scenario Demonstration Projects for State-owned Enterprises
Excellence Level Intelligent Factory of the MIIT (First Batch)
National Intelligent Manufacturing Benchmark Enterprise (Tenth Batch)
Passed Maturity Level 4 Assessment of Intelligent Manufacturing Capability
Shougang Zhixin
National-level Smart Manufacturing Benchmark Enterprise of the SASAC
Award Recipients Project Awarding Authority Awards
Jingtang Co. Data-driven "One Core Four Levels and Multiple Elements" Intelligent Factory MIIT Practice Case of Digital Navigation Enterprise
Shougang Co. Application of Digital Product Carbon Footprint Management and Control Platform Beijing Municipal SASAC Industry Demonstration Level (Typical Application of Digital Management and Control)
Shougang Co. Full-Process Intelligent Scheduling and Sequencing Based on Advanced Algorithms Beijing Municipal SASAC Industry Leading Level (Typical Application of Integrated Innovation)
Shougang Co. Full-Process Intelligent Management and Control of Steel Quality Driven by Artificial Beijing Municipal Government Top Ten Benchmark Application Enterprises for Digital Economy at Intelligence National Data Bureau etc. Global Digital Economy Conference
Jingtang Co. Comprehensive Intelligent Management and Control of Safety for All Links in the Steel Industry Hebei Provincial Department of Industry Excellent Application Scenario for Digital Transformation in the and Information Technology Steel Industry of Hebei Province
Jingtang Co. Intelligent Monitoring of Furnace Conditions Hebei Provincial Department of Industry Pilot for Digital Transformation of Scenarios in the Steel Industry of and Information Technology Hebei Province
Shougang Co. Innovation and Application of Digital and Intelligent Management for Electrical Steel Production Third Prize of Modernization Innovation Achievement in and Sales CISA Metallurgical Enterprise Management
Shougang Co. Research and Application of Key Technologies for Hot Rolled Strip Control Model Driven by Data CISA Third Prize of Metallurgical Science and Technology Awards
Shougang Co. Intelligent Control System for Hot-dip Galvanized Zinc Layer Thickness CISA List of Typical Scenarios for Digital Transformation in the Steel Unmanned Steel Coil Warehouse System Industry
Key Technology and Application of Process Control for Plates Empowered by Digitalization
Jingtang Co. Intelligent Platform for Ladle Hot Repair Based on Multi-robot Collaboration CISA List of Typical Scenarios for Digital Transformation in the Steel
Converter Intelligent Steelmaking System Based on Image Recognition Technology Industry
Jingtang Co. Intelligent Temperature Control System for Finishing Rolling Based on Electromagnetic CISA Third Prize of the 5th Intelligent Manufacturing Innovation Induction Heating Competition - Raw Materials (Steel) Industry
Shougang Co. Development and Application of Smart Carbon Management Platform for Steel Enterprises The Chinese Society for Metals First Prize of the 6th Metallurgical Youth Innovation and Creativity Competition (Enterprise Group)
2025 Shougang Co. Sustainability Report 59Integrated Production and Operation Intelligent Factory
Shougang Co. has actively adopted cutting-edge technologies such as 5G and big data to build a data-driven intelligent ecosystem covering four levels: intelligent equipment intelligent production
lines intelligent operation and intelligent decision-making. More than 90 intelligent scenarios have been established including the intelligent pre-ironmaking control center intelligent converter
steelmaking intelligent storage areas intelligent safety management and intelligent robots exploring an integrated intelligent factory model for production and operation.Intelligent Equipment
Sensors machine vision and other sensing devices have been deployed on key equipment. Leveraging the high bandwidth and low latency of 5G technology real-time monitoring fault early warning and predictive
maintenance of equipment status have been realized. Combined with AI algorithms to continuously optimize operating parameters the company has effectively improved equipment efficiency and service life
reduced failure rates and maintenance costs laying a solid hardware foundation for stable production.Intelligent Production Lines
Supported by a solid automation foundation and a complete information network AI technologies have been deeply integrated into key production processes including steelmaking continuous casting hot rolling
and cold rolling.The intelligent pre-ironmaking control center has been built to realize remote intelligent control of seven production lines. Based on AI large models an innovative visualized and intelligent dispatching system for
the whole process of hot metal transportation has been developed reducing the single operation time of torpedo cars to within 15 minutes.The intelligent steelmaking project applies modern information technologies to create a new intelligent steelmaking model through visualization. With an integrated intelligent control system push-button
operation throughout the steelmaking process is realized enabling precise control and optimization of all converter steelmaking links. This improves production efficiency reduces energy consumption and
ensures stable product quality.The plate production line applies advanced technologies including intelligent function development hyper-converged platforms and digital
twins realizing centralized control centralized business management and centralized operation & maintenance for the entire line with an
automation rate of over 90%.The hot rolling process has adopted multi-link intelligent identification inspection and control systems to realize automated operation and
reduce manual intervention. The self-developed grinding robot achieves surface defect identification and grinding accuracy within 2 mm.A self-learning algorithm model for rolling force has been deployed in cold rolling improving the control accuracy of the first coil rolling force
by approximately 2% after coil specification changes effectively ensuring stable rolling quality.Intelligent Operation
Using big data analysis and multi-objective optimization intelligent algorithms an intelligent management system integrating demand
forecasting procurement planning production scheduling and logistics scheduling has been constructed. By integrating full-process data
from raw materials through pre-ironmaking ironmaking steelmaking continuous casting hot rolling and cold rolling a centralized production
model driven by the dual core of "AI + mechanism" has been created promoting refined whole-process management and efficient resource
utilization.Intelligent Decision-Making
Relying on value mining of full-process data and the application of intelligent models precise decision support is provided for production
quality equipment safety and other professional fields empowering the efficient operation of an integrated intelligent factory for production
and operation.
60 2025 Shougang Co. Sustainability ReportSteelmaking Steam Intelligent Management and Control Platform Cultivation of Digital and Intelligent Talents
Addressing the pain points of large fluctuations Shougang Co. attaches great importance to the construction of a digital and intelligent talent
and reliance on manual adjustment in the team creating an open and shared data culture and establishing promotion channels incentive
mechanisms and multi-level multi-form training mechanisms for digital and intelligent talents to
steam systems of the steel industry Jingtang build a strong talent team for digital and intelligent transformation.Co. developed a steelmaking steam intelligent
management and control platform achieving
an upgrade from "experience-driven" to "data-
intelligence-driven." With "data perception -
analysis and decision - autonomous execution
- learning and evolution" as its core technical route the platform builds a multi-source
data fusion system. Through steam prediction and industrial optimization models it
realizes full-process synergistic optimization of "production-storage-allocation-use."
An autonomous execution and model self-learning mechanism has been established to
Selection and Certification of Digital and Intelligent Technical Talents
ensure stable system operation and continuous evolution of regulation capabilities. After
implementation the stability of the steam system increased by 29% saving 14900 tonnes In 2025 the company opened a special development channel for digital and intelligent technical
of medium-pressure steam annually effectively reducing carbon emissions and providing talents and formulated the Construction Plan for Digital and Intelligent Technical Talent Team.a replicable solution for the intelligent upgrade of energy systems in the steel industry. Focusing on the cultivation of composite talents who "understand processes and master digital
and intelligent technologies" the company built a full-process certification mechanism combining
examination evaluation and appointment. Through the first batch of selection and review 525
people applied and 425 were included in the talent pool. Ultimately 128 people received level
qualification certificates and 34 were appointed. This not only meets the current urgent need for
Smart Logistics Management and Control Platform transformation talents but also forms a replicable and promotable talent cultivation and selection
model laying a solid talent foundation for the company's digital and intelligent transformation.Shougang Co. built a logistics management and
By building exchange platforms the company encourages employees to deeply extract data value
control platform relying on technologies such and use data visualization analysis tools for multi-dimensional perspective and exploratory
as GPS IoT 5G and electronic maps. Following autonomous data analysis creating an atmosphere of "everyone using data and everyone
the principles of "ensuring efficiency reducing understanding data." Through years of activities such as data analysis/application competitions
costs and centralized management and digital and intelligent engineer vocational skills competitions benchmarking exchanges and
control" and focusing on the internal supply special digital training the company cultivates digital and intelligent talents and forms a series of
chain the platform achieves integrated and replicable and promotable data analysis application cases. In 2025 the company organized 5 digital
unified management of material transportation and intelligent training sessions and related activities such as the "FineBI Data Analysis Check-in
inside and outside the plant. The platform builds an intra-plant logistics management and Training Camp" covering 1372 people.control system closing the data loop from planning to execution. With the help of software
and hardware such as electronic fences and vehicle terminals it integrates real-time data
such as warehouse inventory vehicle status and transportation plans to achieve intelligent 6th National Intelligent Manufacturing Application Technology Skills Competition in 2025
scheduling full-process visualization tracking and multi-dimensional comparative analysis
of intra-plant logistics. This effectively standardizes logistics processes reduces logistics Third Prize in Instrument and Third Prize in Intelligent Manufacturing
costs improves logistics operation efficiency and management levels and empowers the Meter Repairer category 1Item System O&M category 1Item
green and efficient operation of the corporate supply chain.
2025 Shougang Co. Sustainability Report 61Digital and Intelligent Engineer Vocational Skills Competition FineBI Data Analysis Check-in Training Camp
From June to September 2025 Shougang Co. held the Digital and Intelligent Engineer Shougang Co. organized special training sessions on FineBI data analysis. Combining
Vocational Skills Competition. The competition innovatively set two major categories of online check-ins group interaction theoretical learning and practical exercises the training
Digital Empowerment and Optimization Leadership alongside a leadership track. Adopting systematically explained core FineBI functions data import and cleaning and visual report
the competition format of theoretical examination + case review + case defense it focused production forming a complete training closed loop of learning practicing questioning
on pain points and difficulties in production and operation for skill contests. The event and answering. The activity covered 936 employees from multiple departments. The
attracted more than 450 participants with a total of 315 entries submitted. Finally 60 excellent completion rate reached 99% with participants obtaining the FCA-FineBI
contestants advanced to the final defense and 25 outstanding winners were awarded certification. A number of team and individual awards were also presented. The training
honors at various levels. effectively improved all employees' capabilities in data analysis and visual application
strengthened the concept of data-driven decision-making deepened consensus on digital
Participants developed multi-dimensional visual reports covering production tracking
and intelligent transformation and consolidated talent support for the Company's digital
quality inspection and other scenarios on the FineBI platform. By promoting learning
transformation and high-quality sustainable development.and practical training through competition the event effectively stimulated employees'
enthusiasm for data analysis and application. We fostered a sound atmosphere of
"everyone using data and everyone understanding data" continuously improved
staff digital literacy and provided innovative solutions to break through operational
bottlenecks. Meanwhile we consolidated the talent pool and technical foundation for
digital transformation advanced the intelligent and refined upgrading of production and
operation and empowered the company's digital transformation as well as high-quality
and sustainable development.Looking ahead to 2026 Shougang Co. will continue to advance the implementation of the digital
and intelligent transformation action plan comprehensively enhancing basic technical capabilities
manufacturing coordination capabilities operation management and control capabilities and
management service capabilities to promote digital and intelligent transformation across all
processes and business areas. The company will accelerate the expansion of digital and intelligent
transformation to all processes and procedures improve the data application capabilities of all
employees and continue to deepen the application of large model technology in core business
scenarios such as R&D innovation production manufacturing and supply chain collaboration.The company aims to create "AI+" application scenarios with Shougang characteristics build an
industrial benchmark for the deep integration of AI and the real economy and construct a "Pilot
Level Intelligent Factory" injecting a stronger intelligent engine into the company's high-quality
development.
62 2025 Shougang Co. Sustainability ReportProduct Quality and Customer Service In 2025
Product quality and safety are the foundation for an enterprise to fulfill its environmental and social Won the "4th Beijing Municipal Government Quality Management Award"
responsibilities while high-quality customer service is a key bond for achieving value co-creation between the Rated as "National Quality Benchmark" by the China Association for Quality
enterprise and its stakeholders. Shougang Co. strengthens the product safety red line with high-standard quality
management and improves the full-chain service system with a customer-centric approach. Through systematic
management and control digital and intelligent empowerment and ecological synergy the company integrates
quality control and service optimization throughout the entire production and operation process. This not only
provides customers with safe high-quality steel products and customized services but also promotes industry
transformation and upgrading through supply chain synergy realizing the resonance of enterprise development
customer interests and industrial progress.Product and Service Safety and Quality
Shougang Co. adheres to "strengthening the enterprise through quality." Guided by the market centered on
customers and supported by production-sales-research synergy the company follows the quality policy of
"committing to product excellence and pursuing customer satisfaction." We strengthen quality management
system construction strive to improve product quality and service levels and build "manufacturing + service" Shougang Zhixin
integrated competitiveness. Through strict quality control processes and advanced production technologies
the company provides customers with safe high-quality steel products assisting in the construction of major
national equipment empowering green and low-carbon transformation and serving people's better lives winning Nomination Award of the 5th China Quality Award
extensive trust and praise. Quality Benchmark for Industrial Enterprises in Hebei Province
Quality Management System
Shougang Co. attaches great importance to product quality and safety establishing a systematic rigorous and
efficient quality standardization management system and creating a quality management framework covering the
entire product life cycle. In strict compliance with the Product Quality Law and other relevant laws and regulations
the company has established systems such as the Quality System Management System the Product Quality Incident
Management Measures and the Product Quality Assessment Management Measures covering aspects such as the
quality management system product consistency management quality incident management and usage safety
management thereby comprehensively enhancing its product quality control capabilities. In 2025 the company
did not experience any major incidents involving product-related safety and quality liabilities.The primary person responsible for product and service quality safety coordinating the formulation of quality
General Manager
management strategies and top-level planning for quality system construction. Jingtang Co.Manufacturing Responsible for quality management in charge of the daily operation maintenance and optimization of the quality
Department management system and organizing internal and external system audits. Rated as "Excellent Quality Management Enterprise in Hebei Metallurgical
Quality Industry" for ten consecutive yearsResponsible for carrying out product quality testing and inspection implementing quality process monitoring and
Inspection
Department controlling quality risks throughout the product process.The company has established a quality management system that complies with ISO 9001 and IATF 16949 Qiangang Co.standards. We ensure product quality through early-stage product quality planning production approval
procedure control plans and standardized operations. In addition regular supervision internal audits and
external audits are conducted to maintain the integrity and effectiveness of the quality management system. The 3rd Beijing Municipal Government Quality Management Nomination Award
company has obtained certifications for the ISO 9001 Quality Management System and the IATF 16949 Automotive
Quality Management Standard.
2025 Shougang Co. Sustainability Report 63Quality Risk Management and Control Product Quality Self-inspection and Self-control
Shougang Co. manages quality risks throughout the entire process - from product quality planning Based on product characteristics and customer requirements for environmental hazardous
quality control and quality assurance to quality improvement. substance control such as RoHS/REACH the company implements process supervision and
outsourced testing from raw materials processes and packaging in accordance with the
ng Qua
nni lila
ty C Measures for the Administration of Hazardous Substances. Requirements from customers and
stakeholders are cascaded to upstream suppliers level by level; all delivered products are
Quality Risk tested by qualified third parties with reports issued. Meanwhile third-party testing is updated
Management based on high-risk substance lists to ensure product safety.and Control
Quality Improvement
The company continues to focus on "Double Ten" (the top ten internal quality problems and
Quality Planning
the top ten customer feedback problems) key projects. For internal quality bottlenecks and
The company built an industrial big data platform to digitize quality control rules. Using key concerns of customers we set challenging goals and select key business personnel to
advanced technologies such as online detection machine learning and image recognition it form the project teams. Indicators are monitored through weekly dashboard meetings and
replaces manual decision-making with 100% machine decision-making to realize integrated project progress is reported in monthly quality meetings. Using lean methods such as Six
quality management throughout the process. With the help of big data analysis and customer Sigma QC management groups and Amoeba the company builds a continuous improvement
feedback it continuously optimizes standards for product size curves profile appearance and innovation platform and creates an all-employee quality improvement culture.and performance. For product residual hazardous substances and packaging materials free
chromium control indicators have been established sampling inspection by batch and regular
third-party testing to ensure product quality and safety. Quality Culture
Quality Control
Shougang Co. regularly holds quality expert lectures lean quality special open classes and special
Built a "one-button" system for quality process management integrating process parameters quality training covering quality management systems tools and excellence performance to
for steelmaking hot rolling and other processes to achieve full-process tracking and data strengthen employees' quality risk responsibility awareness. "Quality Month" activities are held
analysis. Quality monitoring and warning functions were developed to monitor real-time consecutively to create a quality culture corridor and reinforce quality awareness. In 2025 the
information such as temperature size and profile during production providing timely alerts company planned a series of activities to gather quality consensus and promote the solution of
and improving process monitoring and warning capabilities. A cloud-edge-end data architecture
was established to build a full-process quality management and control platform. focal problems through training atmosphere building customer visits and story sharing.Quality Assurance
Conducted third-party certification audits for strategic products formulated process Training
performance indicator supervision and ensured continuous improvement through internal Content
reviews to enhance quality management system performance. A three-level process Performance Excellence ISO 9001 Quality
inspection mechanism was established to check the execution of process control plans and Criteria TrainingManagement System
regulations weekly and publish weekly inspection reports to ensure accurate operation. The
Quality Inspection Department was established independently of production departments; Standard Training
its laboratory has obtained CNAS certification and continues to promote testing technology
upgrades and intelligent equipment transformation while accepting internal and external IATF 16949 Quality Management
supervision. Five Core Tools TrainingSystem Standard Training
64 2025 Shougang Co. Sustainability Report
t Qu
vem
en ality
o P
ce
uality
an
Imp
ur r
l Quo altr
ity
n Aso sCustomer Service
Shougang Co. is user-centric and demand-driven. By leveraging the promotion of its intelligent
marketing platform and focusing on enhancing the user experience the company continuously
improves its customer service system to provide one-stop services and differentiated precise "one user
one strategy" solutions thereby enhancing the quality of customer service.Protection of Customer Rights and Interests
The company strictly adheres to legal and regulatory requirements and has established
management systems including the Customer Service Management Measures the Steel
Product User Satisfaction Management System the Product Quality Dispute Management and the
Online Trading Platform Customer Complaint Management System among others. The company
continuously optimizes service processes improves the customer service management evaluation
mechanism and standardizes the customer complaint and handling processes to enhance both
customer service capabilities and service quality.Quality Monitoring Equipment Training
Customer Service System. Integrating production sales research and technical service
"Quality and Fun Together" Quality Story Sharing Session resources the Marketing Center established the Customer and Product Service Department
to improve a three-tier service system based on classification regional segmentation and
During the "Quality Month" the company held the "Quality and Fun Together" Quality hierarchical service levels. For automotive sheets we provide dedicated services through a key
Story Sharing Session exploring vivid practices of adhering to quality and practicing account manager team offering 24/7 on-site support.craftsmanship in front-line positions listening to the responsibility and commitment
in ordinary positions perceiving the value pursuit of "taking quality as beauty and
craftsmanship as honor" promoting the deep rooting of quality concepts among Technical Conducts EVI (Early Vendor Involvement) services co-building laboratories
Service and innovation alliance studios to provide customized products so as to
employees and facilitating the continuous inheritance of craftsmanship culture. realize co-design co-development and collaborative production.In "Quality and Fun Together" "Quality" represents persistence in original intention and
responsibility while "Fun" reflects the love for quality work and the value achievement Delivery Improves the production-research-transportation linkage mechanism and
when persistence is recognized. Guarantee establishes a supply guarantee mechanism for emergency orders.Regularly conducts channel analysis establishes flexible pricing
Sales Service
mechanisms and promotes information system construction.Logistics Jingtang Co. is equipped with its own terminal ensuring convenient logistics
Service services.Processing Promotes the construction of a processing center network.Service
2025 Shougang Co. Sustainability Report 65Smart Marketing Platform. The company continuously optimizes the platform interface to provide for technical services continuously optimizes the process of obtaining handling and feedback
convenient order tracking quality certificate verification and request submission. We have built customer demands ensures that user feedback is handled in a timely manner and converts
an efficient "Shougang-Customer" interconnected EDI platform to satisfy personalized interactive user-concerned matters into internal evaluation indicators. The company advances the path of
needs for sales contracts quality and logistics data. obtaining demands improves the channels for collecting demands uses platforms such as weekly
customer service meetings base quality meetings base production-sales-R&D sports meetings
Intelligent Customer Service monthly customer service meetings and product promotion meetings to timely collect customer-
side problems and needs and conducts hierarchical management of user complaints to ensure
Centering on the dual goals of improving customer service efficiency and experience the that problems can be found quickly. The company has established a user representative dispatch
company has built a "one-stop" intelligent question-and-answer system - Shougang Intelligent mechanism and a collaborative mechanism of "Problem List-Supervised Resolution-Internal Task
Customer Service. Shougang Intelligent Customer Service covers the entire customer service Force" effectively solving customers' actual needs and realizing 100% closed-loop management of
scenario realizing real-time response from inventory inquiry order tracking quality guarantee customer demands.certificate verification to invoicing consultation signature processing and then to order In terms of handling quality objections the
information and product information inquiry. By replacing the "waiting - transfer - feedback" company has also established a rapid response
link of traditional manual consultation it responds to customer needs in real time significantly mechanism. Once receiving quality objections
improving the response speed and satisfaction of customer service and injecting intelligent and quality feedback from users the service Demand Product Quality Design
& Optimization
momentum into customer relationship maintenance. team rushes to the scene to find product
Identification &
Transformation
problems at the first time and takes the
Quality
Inventory Order Guarantee Invoicing Signature Order Product lead in organizing timely handling to ensure
Inquiry Tracking Certificate Consultation Processing Information Information Requirement Implementation
Verification Inquiry Inquiry the timeliness of quality objection handling. Collection & Verification
In addition it analyzes and summarizes the
causes of quality objections and feeds them
back to relevant units of the company in a
Responsible Marketing. Shougang Co. consistently adheres to responsible marketing and
timely manner to avoid the recurrence of the Customer Delivery
strict advertising content control fully complying with the Advertising Law and the Consumer Evaluation to Users
same quality objections.Rights Protection Law. The company reinforces responsible marketing practices by strengthening
compliance management in key business areas such as pricing policies carrier admission and In 2025 addressing customer pain points the Technical Usage
quality dispute risks and ensures transparent and accurate sales information. In 2025 the company leveraged technological innovation Service Tracking
company conducted ESG-related training for marketers and no violations related to product or to deepen differentiated services across
service information labeling or marketing activities occurred. R&D product performance application scenarios and quality assurance. We provided customers
with more competitive material solutions tailored to diverse applications. By integrating green
manufacturing premium production and high-end product promotion we have strengthened a
In 2025 the company won the "Market Development Award" from the CISA. mutually beneficial cooperation model earning widespread recognition and trust from our clients.In accordance with the company's Steel Product User Satisfaction Management System satisfaction
Looking ahead the company will continue to enhance its three-tier service system improve the management modules have been developed within both the production-sales system and the
"Problem List-Supervised Resolution-Internal Task Force" collaborative mechanism further intelligent marketing system. A combination of online and offline methods is used to conduct
improving service standards and quality and enhancing customer satisfaction. regular customer satisfaction surveys. The survey covers multiple dimensions including overall
impression product quality supply capabilities service quality and pricing and is conducted with
Customer Communication and Feedback a differentiated evaluation approach. Additionally the company collects customer opinions and
Shougang Co. adheres to the principle of "coming from users and serving for users" establishes a suggestions extensively through various channels such as phone calls faxes emails trade fairs
user feedback mechanism a closed-loop feedback process and a three-tier rapid response system and on-site visits. For concerns raised in satisfaction surveys each issue is verified in detail and
66 2025 Shougang Co. Sustainability Reportthe production sales and R&D teams collaborate to ensure a rapid response guaranteeing effective problem resolution. After corrective actions are completed a
multi-dimensional follow-up mechanism is implemented forming a closed-loop satisfaction survey management process to continuously enhance the customer Customer Satisfaction
experience. In 2025 the company conducted a comprehensive user satisfaction survey collecting 957 valid responses with an overall satisfaction score of 98.98.Furthermore 118 improvement actions based on user feedback were successfully implemented. 98.98
Synergistic Development and Value Co-creation
Shougang Co. conducts all-round and multi-dimensional customer exchanges and interactions providing comprehensive in-depth personalized and effective customized services. We work with users to
solve product application and industry technical problems promoting collaborative innovation and progress of the industrial chain. Through video conferences face-to-face meetings and other methods
the company carries out "Closer to Customers" activities to deeply understand the problems encountered by customers in product use accurately perceive user needs and serve users wholeheartedly. By
holding activities such as Shougang Day joint exhibitions and technical exchange days at the customer site the company strengthens technical cooperation in new materials new technologies green and
low-carbon and other fields.In 2025 the company conducted more than 5300 customer visits and exchanges including over 2200 technical exchanges and 164 special user technical exchanges on low-carbon products. We held high-
end technical forums on automotive steel low-carbon technical forums on automotive sheets seminars on the development of medium and heavy plate energy steel and the launch conference of Zhongshan
Green Guard low-carbon project. We organized technical exchange summary meetings with 5 users including NIO and Hongqi and carried out "Shougang Day" activities in enterprises such as Dongfeng
Nissan and Geely.Chery · Shougang Technical Exchange Day Activity Tinplates and Chrome-plates Product User Seminar
In January 2025 Shougang Co. and Chery Automobile held a Technical Exchange Day In November 2025 Jingtang Co. held a Tinplates and Chrome-plates Product User
activity in Wuhu Anhui Province. The two parties focused on deepening cooperation Seminar with the theme of "Coating Excellence Leading the Future with Tin" in Hangzhou
in cutting-edge fields such as the R&D of low-carbon green steel materials overseas gathering more than 110 representatives from 56 units including leading enterprises in
market development and whole-vehicle material solutions. With "Shougang Wisdom" and the food packaging industry benchmark enterprises in segmented markets and well-
"Shougang Solutions" we help Chery achieve high-quality development and jointly create known domestic and foreign traders. In the future the company will continue to adhere
a model of collaborative innovation between the iron and steel and automotive industries. to its original aspiration with craftsmanship meet challenges and share opportunities
with global partners empower the upgrading of the global industrial chain through
technological innovation transform user needs into innovative momentum create greater
value for users and achieve win-win development.
2025 Shougang Co. Sustainability Report 67* "Green and Low-Carbon Excellent Supplier Award" from GAC Honda (the only steel enterprise)
The 9th Nissan "Shougang Day" * "Joint Logistics Support Award" from China Construction Science and Industry Corporation (the
only steel enterprise)
In October 2025 Shougang Co. and Nissan Motor held the 9th "Shougang Day" annual * "Global Partner Golden Cube Award" from Haier Smart Home
strategic dialogue. The two parties conducted in-depth exchanges around automotive * "Outstanding Contribution Award for Technical Cooperation" from Great Wall Motors
material innovation electrical steel solutions for new energy vehicles and global * "Outstanding Supplier" award from multiple users including Chery Geely Seres CIMC and
cooperation. Nissan highly recognizes Shougang's continuous improvement in commercial Hisense
services technical support and new material development and the level of cooperation * "Best Business Cooperation Supplier Award" from Benteler
……
between the two parties has improved year by year. In the future Shougang Co. will
continue to be customer demand-oriented deepen product technology and service
innovation and promote win-win development between the two parties in broader fields
and deeper levels.Customer Privacy Protection
Recognition Continues to Increase for Our "Manufacturing + Service": Shougang Co. attaches great importance to customer privacy protection. We have built a complete
privacy protection compliance management system and focus on strengthening the whole-
life cycle protection mechanism of customer information. Detailed privacy protection clauses
are clearly stipulated in the Customer Information Management System of Steel Products. Special
54 36 4 customer representatives are assigned to be responsible for customer information management. By strengthening internal management and conducting employee training the company enhances the
Customer Awards Thank-You Letters for Pennants privacy protection awareness of all employees to ensure comprehensive and effective protection of
Efficient Services customer privacy. Through a combination of technical means and management measures such as
strengthening data encryption restricting data access rights and regularly reviewing privacy data
it ensures the security and compliance of customer privacy data during transmission storage and
processing.
68 2025 Shougang Co. Sustainability ReportSupply Chain Security
Shougang Co. aims to build a "safe stable green and smart" sustainable
supply chain integrating the "Four-Integration-One-Body4" procurement
compliance management system. Through precise management and
control of the entire process it improves efficiency reduces costs and 100%
strengthens compliance management. Adhering to the green and low-
carbon concept the company fully integrates ESG requirements into all
links of the supply chain prefers suppliers that meet ESG standards and
promotes green and low-carbon supply chain management. Meanwhile
upholding the concept of "green smart and transparent procurement" The proportion of domestic suppliers
we achieve process transparency and traceability through digitalization
and establish stable and transparent cooperation with partners. The
company will continue to promote supply chain security construction and
drive the sustainable development of the steel ecosystem. Basic Conditions for Supplier Access
Full-Life Cycle Supplier Management 01 02 03 04
* A c i v i l e n t i t y w i t h le g a l p e rs o n * Capability and credibility in fulfilling * Strict compliance with the Labor Law and * Products provided must comply with
The company has formulated the Procurement Supplier Management qualification (or a legally responsible contracts Environmental Protection Law national industrial policies
Measures to implement closed-loop full life cycle management for suppliers business operator) * Good supply performance and business * Strict adherence to applicable local and * E n s u re t h e le g a l i t y o f p ro d u c t
* Considering factors such as resources reputation industry laws and regulations manufacturing and production
from access audit and evaluation to graded management. We also conduct
q u a l i t y c o s t m a n a g e m e n t a n d * Sound financial status and tax records * Upholding business ethics implementing * Ensure the safety of product usage
on-site audits and ESG risk exclusion to ensure supply chain security and sustainability adhering to the principles * No record of illegal or non-compliant labor protection and strengthening * Agree to sign the Business Partner
sustainability. The Procurement Center is the department responsible for of standardized management superior activities in business operations health and safety Code of Conduct Commitment Letter
supplier management. In 2025 76 new suppliers were admitted and all ESG quality and reasonable price * No major breaches of trust or dishonorable
project research and assessments were qualified. The company continued to conduct
conduct low-carbon performance evaluations for suppliers to strengthen the
low-carbon management orientation for suppliers.Supplier Access Management Supplier Audit Content
The company has established research and review groups and formulated Business Production Quality Warehousing & Enterprise Social Scale Status Control Logistics Management Green Factory Responsibility
a research list of 36 items in 7 categories to conduct comprehensive
research and review of suppliers. Scoring standards and evidence material Business Raw Material Inspection Equipment Warehousing Organizational Certified Green Violations &
requirements are set differentially based on business characteristics Scope Control and Instruments Capacity (Leased or Structure & Personnel Factory (Yes/ Non-Compliance
to ensure that suppliers meet business characteristics and compliance Capability Owned) Composition No) Cases
standards. A supplier status management mechanism has been Registered
Raw Material
Production Incoming Inspection Transportation Employee Training Capital Green Third-Party
established defining trigger conditions for backup freezing recovery and Processes Methods Distance and Time Management/ Production Public Credibility Records
other statuses. A three-month trial period is required for newly admitted Number of / Coal & Platform InquiryCapacity Production Process Transportation Electricity
suppliers to strengthen the effectiveness of supply channel construction. Employees Utilization Standardized Inspection Methods Modes (Port/
Rate Management
Usage Social
Pre-compliance operational screening is conducted and a "one-vote veto" Terminal) Responsibility Production SystemProduct Outgoing Assessment
and dismissal policy is implemented for suppliers involved in dishonesty Capacity and Production Green
Base and Quality Control Truck Transport (Own Comprehensive Transportation Report
serious violations of the law use of child labor or conflict minerals. Output Equipment Methods Fleet or Not) & Standardized
Sales Capability Management Systems Rail Ship
Fulfillment
As of the end of the reporting period the company had 3553 registered Railway Terminal of Social Performance Inspection Results or Electric
suppliers all of which were from Mainland China. Equipment Shipment Capacity Safety Management Transport Responsibilities
Operational
Capability Quality Management Warehousing & Environmental
4 System/Records F our-Integration-One-Body: a multi-site integrated procurement management system featuring Logistics System/ Protection
standardization normalization digitalization and institutionalization. Records Management
2025 Shougang Co. Sustainability Report 69Supplier Evaluation Management Supplier Evaluation Criteria and Assessment Rules
To continuously optimize the sustainable development level of the supply chain the company
Quality
implements evaluation management consisting of monthly scoring and annual comprehensive
evaluation for formal suppliers. By integrating data from the procurement system we adopt
a multi-dimensional evaluation method combining automatic system calculation with manual Collaboration &
assessment. For quantifiable indicators such as quality delivery price and response rate scores DeliveryResponsiveness
are automatically calculated by the system through preset logic to ensure objectivity and precision.For qualitative indicators such as service satisfaction fulfillment of social responsibility and Major Impact:
major impacts manual assessment is conducted through a multi-departmental collaborative 1-Point
online process to ensure openness fairness and justice. Based on the annual evaluation results Disqualification
suppliers are classified into four levels: A B C and D. Differentiated cooperation strategies are
implemented and dismissal processes are executed for unqualified suppliers thereby building a Business Price
supply chain ecosystem of "survival of the fittest" and virtuous cycles. Reputation
In 2025 the company evaluated a total of 1795 suppliers with A and B-level suppliers accounting
for 64.84% C-level suppliers accounting for 35.15% and D-level suppliers accounting for 0.01%.Evaluation Criteria Based on Procurement Material Characteristics Service
Quality Collaboration Business
A B C D
Service Price Delivery Significant
Response Reputation Impact
Supplier 80≤Supplier 60≤Supplier Supplier
Quotation Comprehensive Comprehensive Comprehensive Comprehensive Quality Pass Operating with After-Sales Price On-Time Serious Legal
Response Rate Rating Score≥90 Rating Score<90 Rating Score<80 Rating Score<60Rate Integrity Satisfaction Reasonability Order Violations
Quality Dispute Technical Legal Innovation Price Delivery Rate Affecting
Items Breakthroughs Compliance Low-Carbon Competitiveness Contract
Production
Information Holding Fulfillment Conflict
Sharing Development
Supplier Audit Management
Environmental Minerals
Health and Child Labor To improve supplier performance and enhance supply chain resilience professional departments
Quality System
Non-Compliant are organized annually to jointly conduct second-party supplier audits and an annual audit plan is Certifications
Business formulated. In 2025 a total of 12 suppliers were audited and 86 rectification and optimization items
Practices were proposed driving suppliers to improve product quality and providing support for supply chain
security.To resolve compliance risks caused by non-standard procurement operations the company has
formulated the Procurement Method Management System. Procurement Method Management
* Established the Procurement Standardization Promotion Committee forming a "top-down"
and "cross-departmental coordination" management structure. In accordance with the Specifications for Procurement Operations of State-owned Enterprises and
the Specifications for Procurement Management of State-owned Enterprises procurement methods
* Coordinated planning clarified the division of departmental responsibilities and refined are divided into four categories and eight items with clear applicable conditions. Through three
group implementation.major procurement platforms—Shougang Bidding Platform Shougang Selection Platform and
* Formulated a procurement full-process compliance management system integrating Shougang Mall—business processes are solidified and embedded in the system. Information-
standardization normalization digitalization and institutionalization as its core principles.based management and control are implemented ensuring that data does not leave the system
* Created a work progress timeline and held regular promotion work meetings to lay a solid throughout the process and the review and approval processes are traceable building a solid
foundation for the promotion and implementation of procurement standard work. foundation for compliant procurement.
70 2025 Shougang Co. Sustainability ReportSupply Chain Risk Management performance standards and optimizing supplier performance evaluation methods. Strict ESG
management and risk assessment are implemented throughout the supplier management process.In the access stage indicators such as business ethics conflict minerals human rights safety and
Shougang Co. adheres to the supply chain risk management principles of "prevention first graded environmental protection and sustainable development are comprehensively examined. During the
management and control full-process traceability and continuous improvement." It formulates reporting period a 100% signing rate of the Business Partner Code of Conduct Commitment Letter
annual risk identification and response plans focusing on areas such as supply interruption was achieved. To ensure the effective implementation of supplier ESG management the company
compliance dishonesty and environmental and social risks. Through the institutionalization of has established a clear three-level governance and supervision system:
processes and the digitalization of processes we achieve early discovery early warning and early
disposal of risks. Responsibility and Decision-making Level
Dynamic Warning Mechanism The company's General Manager's Office is the highest decision-making
body for supply chain ESG strategies and policies responsible for approving
By connecting with information pushed by "Tianyancha" (a corporate credit intelligence relevant policies goals and major matters.platform based on national public data that helps users quickly understand corporate
operating conditions etc.) a procurement supplier warning module has been built. Risk Management Implementation and Oversight Body
warnings are divided into three levels: general warning important warning and major The Procurement Center as the company's designated core implementation
warning. Among them changes in legal representatives equity changes and public opinion and daily supervision body is fully responsible for integrating ESG requirements
reports are general warnings; administrative penalties lawsuits tax ratings and equity into supplier full life cycle management. Its responsibilities include system
pledges are important warnings; and being listed as a major violator or a dishonest person execution risk assessment performance evaluation and driving continuous
subject to enforcement is a major warning. improvement.Execution and Collaborative Department
Dynamic Withdrawal Mechanism
The business and management departments of the Procurement Center
Suppliers with major warnings will be included in the supplier blacklist; for behaviors such in collaboration with professional departments such as quality and safety
as being listed as a dishonest person subject to enforcement serious violations of the law and environment are jointly responsible for implementing ESG standards in
(including use of child labor non-compliant operations etc.) or involvement in conflict supplier access performance assessment and on-site audits.minerals as well as suppliers whose annual evaluation results are unqualified business
dealings will be terminated and dismissal processes executed. For suppliers whose ESG
performance fails to meet standards or who fail the assessment management measures such In 2025
as time-limited rectification suspension of cooperation or permanent exit are implemented. In
2025 18 suppliers assessed as having major actual/potential negative impacts were included
in the blacklist. 100% 100%
The proportion of key The proportion of suppliers with
Emergency and Business Continuity Management suppliers evaluated significant actual/potential negative
impacts but having reached consistent
A list of backup suppliers for key materials and emergency procurement processes has been
corrective measures/improvement plans
established. No major production or operation impacts caused by supply chain interruption
occurred during the reporting period.Supply Chain ESG Management 258 28
Suppliers that passed desk Suppliers supported when
Shougang Co. deepens supply chain ESG risk management fully integrates ESG considerations evaluation/on-site evaluation implementing corrective action plans
into the supplier access and assessment system strengthens supply chain ESG management
and builds a sustainable supply chain ecosystem of shared responsibility. The company signed
the Business Partner Code of Conduct Commitment Letter with suppliers clearly specifying ESG
2025 Shougang Co. Sustainability Report 71The company has publicized the Business Partner Code of Conduct
Due Diligence
Commitment Letter aiming to comprehensively standardize its business
behavior uphold the concept of sustainable development promote the To systematically manage environmental social and governance risks in the supply chain the company
harmonious coexistence of the company with society and the environment incorporates suppliers into a unified sustainable development management system. In 2025 the company
and lay a solid foundation for its long-term development. conducted a special questionnaire survey to identify and assess performance in business ethics compliant
operations and responsible procurement.Respect and Prohibit discrimination and harassment respect basic The survey focuses on the following core aspects:
Uphold Human labor rights prohibit child labor and forced labor and Business ethics and compliance: Including the strict prohibition of unethical or illegal businesses.Rights protect women's rights.Fair operation: Relevant policies and commitments to maintain a fair competitive environment.Responsible supply chain: Especially the management of conflict minerals etc.Conduct business cooperation with a professional honest
A total of 1202 valid questionnaires were collected. Based on this the company can more accurately identify
Business Ethics and upright attitude abide by market competition principles
and create an integrity-based corporate culture. risks conduct targeted communication and promote continuous improvement of cooperative suppliers jointly
building a more resilient and responsible value chain.Take green development as a core strategy promote
innovation in energy conservation and carbon emission Procurement Process Supervision
reduction technologies reduce impact on the environment
Environmental
use natural resources moderately handle chemicals Ensure consistency with the suppliers' code of conduct and avoid potential conflicts with ESG requirements. Protection
safely strictly abide by laws and regulations related to Contract terms require suppliers to comply with the ESG requirements in the Procurement Supplier Management
biodiversity protection and actively promote the harmonious Measures.development of the ecological environment.ESG Continuous Review and Improvement
Supplier Selection and Qualification Audit During the monthly scoring and annual comprehensive evaluation of suppliers the company continuously reviews
whether supplier behavior is consistent with the Business Partner Code of Conduct Commitment Letter and
ESG factors such as business ethics labor requirements human does not cooperate with suppliers that fail to meet the minimum ESG requirements. For suppliers with poor ESG
rights protection health and safety and environmental protection
are incorporated into supplier access assessment. Basic ESG performance improvement requirements are put forward and supervision is conducted to ensure their rectification
requirements that suppliers must comply with have been formulated. and implementation.For example the products provided by suppliers must comply with
national industrial policies to ensure the legality and compliance of Internal Training and Communication
product production and manufacturing; ensure that products meet
national or industry safety standards to eliminate safety accidents Relevant training and communication are conducted for procurement personnel including basic understanding
caused by product quality; suppliers should hold valid certificates of of sustainable procurement and compliance requirements identification of social risks in the supply chain and
compliance with environmental emission standards or environmental supplier due diligence environmental performance requirements of the supply chain and green procurement
system certifications (such as ISO 14001) and their environmental
management must comply with relevant standards. practices sustainable capability building of suppliers and communication and collaboration clarifying their
roles and responsibilities in supplier ESG management.Prioritization of the Selection of Suppliers with Good ESG Performance Supplier Empowerment and Support
When selecting suppliers and signing contracts priority is given The company provides ESG-related training including business ethics labor rights and interests environmental
to suppliers with better ESG performance such as those that protection occupational health and safety to improve suppliers' awareness and performance of sustainable
development. We also guide suppliers to carry out carbon footprint accounting and certification and promote
have obtained national green factory certification or adopt green green procurement and low-carbon production. In 2025 the total duration of ESG communication and training
transportation methods. with suppliers was 474 hours.
72 2025 Shougang Co. Sustainability ReportConflict Minerals Management models. The Shougang Procurement Risk Control Compliance Guidelines have been developed defining key risk control points and management standards. This initiative breaks away from
The company has publicly released the Conflict Minerals Claim requiring all suppliers to sign the traditional procurement constraints and enhances procurement risk compliance management capabilities.Business Partner Code of Conduct Commitment Letter which clearly stipulates that the tantalum
tin tungsten gold cobalt mica and other minerals contained in their products must not directly On this basis the company has developed a "131" Digital-Intelligent Procurement Platform
or indirectly originate from conflict-affected areas in the Democratic Republic of the Congo or its with a centralized procurement management platform as its core. The system establishes three
surrounding countries and that suppliers must not directly or indirectly contribute to human rights external procurement portals and a data governance platform enabling full-process digital and
violations in these areas. Suppliers must commit to conducting due diligence on their mineral intelligent management of procurement operations. By leveraging cloud computing big data
sources and supply chains and providing relevant certificates when required. The company clearly and other advanced technologies this platform enhances procurement data analysis and creates a procurement digital brain ecosystem leading to comprehensive procurement management
stipulates in the procurement contract terms that both parties must strictly abide by the above improvements.commitments. If a supplier violates the conflict mineral terms Shougang Co. has the right to
unilaterally terminate the contract."131" Digital-Intelligent Procurement Platform
Green Supply Chain Building an Integrated Shougang Procurement Management
Platform for Full-Process Control
To systematically promote the low-carbon transition of the supply chain the company has
Management Material
formulated a clear low-carbon procurement strategy and systematically advanced green System Codes Suppliers
Information
System
supply chain construction. In 2025 around key links such as supplier access performance
evaluation second-party audits and procurement model optimization the company compiled and
Integrated management across regions and multiple bases
implemented the Low-Carbon Procurement Strategy Guidance Document innovatively incorporating Full-process management covering planning sourcing execution inventory and settlement
carbon footprint indicators into the procurement decision-making system. At this stage mainly
through the incentive bonus mechanism in performance evaluation suppliers are guided to actively Establishing Three Major Procurement Portals
calculate carbon footprints and implement emission reductions. Procurement Portals: Shougang Bidding Shougang Selection Shougang Mall
Purpose: Enhancing efficiency and deepening collaboration with suppliers
* Strengthen Industrial Synergy. The company takes the lead in building an industrial collaboration Developing a Data Governance Platform
platform and joins hands with domestic leading enterprises and industry associations to build an
industrial chain collaborative carbon reduction ecosystem. Function: Procurement big data analytics to support cost reduction initiatives
* Consolidate basic capabilities. We iteratively optimize procurement strategies to stimulate suppliers'
motivation for low-carbon transformation; develop low-carbon intelligent management modules to
improve the digital governance level of procurement links. The company's bidding and procurement platform has obtained three-star and Level-3
* Deepen carbon footprint management. We promote the implementation of the accounting system by cybersecurity certification signifying that the platform has achieved higher efficiency
layers and categories and carry out concept promotion and knowledge empowerment through supplier standardization and authority in system functionality data interaction process management and
conferences and promote more than 30 suppliers to formulate special carbon emission reduction plans. technical security providing strong support for the advancement of smart procurement.* Promote technological innovation. We deepen exchanges with more than 10 professional institutions to In terms of material management the company has established a systematic standardized
broaden technical paths; focus on key categories such as quicklime and refractory materials to carry out regulated procedural digitalized replicable and scalable material management system enabling
independent carbon reduction research. seamless integration of information and resource sharing across the supply chain production
* Build a cooperation community. We organize supplier conferences for key categories such as refractory suppliers and after-sales services.materials and scrap steel to build a deeply bonded green cooperation network.Equal Treatment of SMEs
During the reporting period the company organized 38 core suppliers in batches to complete
carbon footprint accounting and certification accumulating 60 product carbon footprint reports.During the procurement process the company adheres to the principle of integrity treating all
Intelligent Supply Chain suppliers fairly and ensuring equal opportunities for SMEs. The company ensures timely and full payment to SMEs safeguarding their legitimate rights and interests. Actively responding to and
strictly implementing the relevant requirements of the Regulations on Ensuring Timely Payment
The company takes intelligent procurement as the core fully implementing the Sunshine to SMEs the company continuously optimizes the business environment to support the healthy
Procurement Principle while continuously exploring and innovating new procurement management development of SMEs. During the reporting period there were no overdue payments to SMEs.
2025 Shougang Co. Sustainability Report 73Employee Development To accelerate the establishment of an agile talent supply chain the company has developed a talent management organizational structure comprising a Talent Leadership Group Talent
Work Committee and Talent Work Office forming a multi-level interactive talent management
Shougang Co. consistently adheres to the "people-oriented harmonious and win-win" philosophy system. The Talent Leadership Group led by the company Party Secretary as the Group Leader
placing employee development at a strategic height. With the protection of employees' rights and the General Manager as the Deputy Leader oversees the company's talent strategy sets
direction allocates resources and guides and supervises talent-related initiatives. The Talent Work
and interests as the baseline empowering growth as the core and sharing results as the goal
Committee is responsible for formulating talent development plans improving talent management
the company has built a management system covering the entire chain of talent attraction systems and monitoring talent initiatives. The Talent Work Office based in the Human Resources
cultivation utilization and retention. From compliant and sound governance mechanisms and Department is in charge of implementing talent development programs.diversified welfare protection to comprehensive workplace care systematic growth support and
The company strictly complies with the Labor Law the Labor Contract Law and other relevant
differentiated incentive mechanisms the company is always committed to achieving the resonance laws and regulations. We have formulated management measures such as the Labor Contract
between individual value and corporate development. We aim to create an equal inclusive healthy Management System and continuously improved the human resource management system. We
harmonious and vibrant workplace ecology ensuring that employees gain a sense of belonging strive to build a talent selection and employment system centered on value creation and sharing
happiness and achievement through the company's development. achievements with value creators creating an equal inclusive and diverse workplace environment
to ensure that the legitimate rights and interests of employees are not infringed upon.Governance Legal Employment
The Human Resources Department is responsible for formulating the human resource strategy Regulations on the Prohibition of Child Labor and Employee Relationship Management
and leading various initiatives related to talent introduction development evaluation utilization Child Labor Remediation Control Procedures Labor Contract Management SystemStandards for the Protection of Female and Underage
motivation and retention. The Union plays a key role in democratic management labor rights Workers
protection and employee care ensuring that employee rights and interests are effectively Standards for Prohibiting Discrimination Harassment Employee Developmentand Abuse
safeguarded. Standards for Prohibiting Forced Labor Three-Tier Talent Management System (Management
Employee Recruitment and Allocation Personnel Professional Technical Personnel and Skilled Workers)
Personnel Recruitment and Configuration Technical and Skilled Posit ion Evaluation and
Management System Appointment Management System
Mission Vision Strategic Goals Management System for Recruiting College
Graduates Performance Management
Public Competitive Recruitment Management
System Job Description Management System
Human Resource Management Job Performance Appraisal Standards
Pre-Shift Meeting Management System
Human Recruitment Training and Employee Employee Training Employee Performance Evaluation Management System
Resource and Staffing Development Performance Salary Relations Three-Tier Talent Management System (Management Planning
Management Management Management Management
Employee Education and Training Management System Personnel
Management Management Wave Program Implementation Plan Professional Technical Personnel and Skilled Workers)
Organizational Campus Training Plan Goal Setting Salary Survey Employee Deep Blue Training Camp Implementation Plan Performance Assessment Management System
Structure Setup Recruitment Training Performance Salary Design Communication Internal Trainer Training Camp Program Performance Appraisal and Distribution Management
Job Position Social Process Implementation Salary Employee Vocational Competition Management System System
Planning Recruitment Training Performance Calculation Activities
Employee Internal Evaluation Guidance Salary Employee Employee CareCompensation Management
Capability Recruitment Job Performance Distribution Discipline
Identification Identification Qualification Results Labor Employee Needs Management System Compensation Management System
Human Personnel Talent Relations Employee Satisfaction Survey Management System Job-Based Salary Management System Hardship Assistance Management System
Resource Supply Allocation Evaluation Comprehensive Evaluation and Long-Term Incentive Employee Health Examination Management System
and Demand Talent Mechanism Implementation Plan for the Middle-Level Employee Health Care Plan Implementation Measures
Forecasting Empowerment Leadership Personnel Employee Physical Fitness Promotion Program
Direct Family Dependents and Children Medical
Human Resource HR System Process Support Human Resource Management Cockpit Management System
74 2025 Shougang Co. Sustainability ReportShougang Co. respects human rights and actively opposes management system by standardizing recruitment processes improving welfare protection
any violations. The company respects employees' rights optimizing incentive mechanisms strengthening democratic management building friendly
to freedom of association union membership and 100 workplaces and empowering employee growth. This not only solidifies the foundation for talent collective bargaining maintaining an effective grievance % retention and mitigates talent-related operational risks but also activates talent innovation and
and complaint mechanism. In 2025 100% of employees transforms talent opportunities into drivers for corporate development.were covered by collective bargaining agreements. The of employees were trade
company strictly prohibits forced labor child labor and union members
workplace harassment. Recruitment employment and Potential Risk /
Opportunity Type Business and Financial Time promotion processes are strictly monitored and an
Description Impact Horizon
Response Measures
employee grievance channel to senior management has The signing rate of
been established to prevent child labor forced labor Adopt a dual approach of labor contracts reached recommendations from
harassment bullying and intimidation. In 2025 no labor Breach of Need to restart the
Employment recruitment process
already signed graduates and
law violations or non-compliant employment incidents 100 Commitment by Risk leading to repeated Medium-
recommendations from key
occurred. Double First-Class recruitment costs; job term
university professors to quickly
% lock the candidates; establish Graduates vacancies indirectly affect practical education bases in
Shougang Co. is commit ted to prov id ing equal operating income. collaboration with universities to
reserve talents.opportunities for all employees and treats individuals of different nationalities ethnicities races
religions and cultural backgrounds equally. The company respects the customs of ethnic minorities Improve talent development
channels and mechanisms;
and strictly protects employee privacy. Hiring compensation professional education technical enhance supplementary
training promotion and participation in company decision-making are based solely on objective Delay or interruption of incentive mechanisms for R&D projects decline core talent and increase non-
criteria. Employees are not subject to discrimination based on gender physical characteristics in technical innovation monetary incentives; implement
marital status or other personal attributes. The company conducts anti-discrimination and anti- Loss of Key Talent Risk capability affecting new Medium & the "Wave Program" for new product development and long-term employees providing a salary
harassment training for all employees through policy dissemination and workplace education market competitiveness; protection period; utilize the Risk
programs. Through employee demand management satisfaction surveys and well-being high cost of re-recruiting Management Cockpit platform to
establish an early warning system
assessments the company conducts human rights impact evaluations to understand and mitigate and training core talent. for key talent turnover rates
potential risks in the workplace. strengthening monitoring and
oversight of workforce attrition.Continuously strengthen the
Strategy Rapidly forming and development of digitalization and Need to Strengthen
Interdisciplinary cultivating such talent
green low-carbon management
teams can accelerate R&D talent by focusing on digitalization
Shougang Co. adheres to the "people-oriented harmonious and win-win" philosophy. Based on Talent in Opportunity and market expansion Medium & intelligent manufacturing and Digitalization and
the trend of transformation and upgrading in the steel industry we build a full-lifecycle talent Green Low-Carbon enhance product premium
long-term green low-carbon initiatives
and systematically enhancing
Development capabilities and improve development system featuring precise talent introduction systematic cultivation diversified targeted tiered training programs profitability. for employees across different
retention and differentiated motivation. We continuously improve the scientific and systematic roles.nature of human resource management maximize employee well-being meet employees' High satisfaction helps
aspirations for a better life and promote the collaborative development of individual value and reduce employee Continuously optimize the
turnover improve "Employee-Friendly Workplace"
corporate sustainability. Our goal is to build a talent team with cohesion combat effectiveness production efficiency construction strengthening
and innovation solidifying the talent foundation for the sustainable development of the enterprise. and quality stability multidimensional support such
Employee and reduce recruitment as psychological care health
During the implementation of the talent development strategy Shougang Co. faces certain risks development and and training costs; a management and cultural/sports Medium & activities; promote "Democratic
and opportunities. organizational Opportunity good organizational
vitality atmosphere can stimulate long-term Management" and "Requirement Response" mechanisms to
enhancement innovation vitality promote enhance employees' sense of
Risks and Opportunities Management knowledge sharing and participation; strengthen internal collaboration and provide publicity and case promotion to
cultural support for the shape the influence of "Employer
To effectively prevent and control risks related to recruitment and retention and fully grasp company's continuous Brand."
opportunities for talent cultivation and activation Shougang Co. builds a full-cycle employee improvement and reform.
2025 Shougang Co. Sustainability Report 75Employee Recruitment
Shougang Co. adheres to the principles of compliance fairness and transparency conducting
campus and social recruitment in strict accordance with prescribed procedures to attract and
select talent. We continuously broaden recruitment channels and strengthen cooperation with
universities and institutes to enrich our talent reserve. In 2025 the company actively absorbed
employment and created flexible employment positions recruiting a total of 113 new employees.Diversified Welfare
Shougang Co. provides diversified welfare plans giving personalized support to different groups
from three aspects: career care family care and holiday care. We have formed a comprehensive
welfare support system of "Statutory Welfare + Supplementary Welfare" to enhance employees'
sense of happiness and belonging and improve talent retention.Shougang Co. strictly complies with regulations by contributing to pension unemployment work
injury medical and maternity insurance as well as housing provident funds. Additionally the
company provides supplementary benefits such as holiday and birthday allowances corporate
annuities supplementary medical insurance for employees and their children group accident
insurance supplementary pension plans and commercial inclusive medical insurance. The
company has also established diverse leave policies including paid annual leave home visit leave
parental leave recuperation leave childcare leave for parents of an only child and paternity leave.We provide comprehensive recreational facilities including employee sports centers and reading
rooms. We build talent apartments with complete living facilities and organize group housing Staff Children's Winter / Summer Vacation Care Class
purchases to ensure housing security for employees.Remuneration and Incentives
Allowance & Subsidy Shougang Co. adheres to a "pay philosophy based on market salary levels job value skills and
capabilities and performance evaluation" and has established a comprehensive diversified and
Academic Qualification Allowance Position Allowance Housing Allowance differentiated compensation incentive mechanism. The company designs different salary structures
Transportation Allowance Communication Allowance Patent Allowance Relocation and compensation models for various employee categories ensuring that salary distribution
Work Allowance Settling-in Allowance Working Meal Subsidy High-Temperature is not influenced by gender age or ethnicity. Compensation is structured to cover incentive
Subsidy Hardship Post Allowance High-Skilled Talents Allowance etc.compensatory welfare and compliance-based allowances and subsidies with salary incentives
differentiated across short-term annual and long-term dimensions. Additionally targeted
individual rewards are provided to ensure employees receive fair remuneration aligned with their
Working Hours Policy roles and the value they create. For mid-to-senior level management the company has established
a long-term incentive mechanism offering tenure-based incentives and equity incentives. The
Arrange working hours according to national laws and regulations strictly prohibiting tenure-based incentives follow a three-year cycle while the restricted stock incentive program is
forced overtime; designed for senior executives core technical personnel and key management staff. Additionally
Standard Working Hour System Employees work no more than 40 hours per week; Shougang Zhixin has implemented an employee stock ownership plan.Comprehensive Working Hour System The average working hours for employees In September 2025 the Board of Directors reviewed and approved the 2025 Stock Option and
do not exceed 40 hours per week. Restricted Stock Incentive Plan (Draft) which was approved by the Beijing Municipal SASAC in
January 2026. This incentive plan focuses on building a scientific and balanced value-sharing and
76 2025 Shougang Co. Sustainability Reportdistribution system covering senior management middle management and core technical (business) Democratic Management
personnel. It sets clear and quantified performance appraisal targets to ensure the fairness transparency
Shougang Co. continues to improve the grassroots democratic management system with
and executability of the incentive mechanism. For details please refer to the announcement released by
the Employee Representative Congress as the basic form promoting the standardization
the company on September 30 2025.of democratic management. We listen to employee opinions beforehand and accept
supervision afterward maximizing employees' rights to know and participate. The labor
Salary union serves as the main communication platform complemented by online and offline
* Post Salary System Annual Salary System Position-Performance Salary System channels. Online through the Shougang WeChat public account the company shares
* Post Salary Performance Salary Off-Site Salary Seniority Wage Rank-based Salary updates on corporate strategy and industry trends helping employees gain a deeper
Year-end Double Salary Equity Incentives understanding of business development. Offline the company has implemented the
* Lean Project Award Management Innovation Award Key Task Award Business Factory Affairs Disclosure Management System making key decisions that affect employees'
Contribution Award Shougang Scientist Award Shougang Craftsman Award Research interests publicly available. An Employee Representative Congress is held annually
Project Award Scientific and Technological Achievement Award Small Indicator allowing employees to participate in corporate management.Competition Award Shougang "Three-Star" Award etc.In 2025 the company was selected as a cultivation unit for typical experiences in
The company continues to optimize the performance management system formulating and strictly democratic management of enterprises and institutions in Beijing.implementing the Performance Assessment Management System. We have built a closed-loop
performance management system covering performance goals coaching evaluation feedback and result Employee-Friendly Workplace
application. This multi-dimensional assessment provides clear directions for improvement and helps
employees progress continuously. For managers the company comprehensively adopts Key Performance Shougang Co. always insists on doing good things doing practical things and solving
Indicators (KPI) and 360-degree feedback annually and monthly linking performance results with difficult problems for employees. We consistently organize activities such as "Spring Care
compensation training and career development to enhance leadership. Visits Summer Cooling Relief Golden Autumn Education Assistance and Winter Warmth
Initiatives" to support employees' physical and mental well-being and personal growth and
build a friendly workplace.Diversified management tools are used for goal setting including but not limited
Employee Requirement Response
to KPIs and Objectives and Key Results (OKR) with different tools applied to
Performance
Goals different ranks and sequences. The company strengthens "Requirement Management" to be a "close friend" to employees.To ensure that the most concerning and urgent problems are resolved we established a
closed-loop mechanism of "Acceptance - Classification - Handling - Feedback - Evaluation."
An annual Performance Evaluation Committee is established to conduct closed- Platforms like the "Labor Union Integrated Platform" and "Employee Service Hotline" allow
door performance reviews based on objective and fair principles considering employees to submit requirements online. We respond instantly and handle reasonable Performance
Evaluation annual performance and capability. requests within a time limit. Additionally the company conducts an annual employee
satisfaction survey holds quarterly employee needs meetings and organizes employee
forums open-door days and informal discussions to provide face-to-face solutions to
A smooth feedback and appeal mechanism is built with a 3-working-day publicity
period one-week appeal window and 2-working-day review process. Employees employee concerns.Performance can appeal to the appraisal department or department head regarding appraisal
Feedback and In 2025 we focused on resolving issues such as
Appeal transfer training or benefits. employees' children's schooling and insufficient
temporary parking spaces while promoting practical
Based on performance reports coaching and interviews are conducted within 10 projects like adding charging piles optimizing shuttle
working days to help employees improve performance and comprehensive quality. bus routes and increasing commuting trips. Employee
Result Application Results are directly linked to employee post adjustment promotion and salary. request response rates resolution rates and satisfaction and Improvement rates all reached 100%. Employee needs meeting
2025 Shougang Co. Sustainability Report 77Employee Satisfaction Survey Caring for Youth
Each year the Union and Human Resources Department identify satisfaction factors for different The company actively engages with young employees through opinion collection discussion and
personnel categories and special groups through employee interviews questionnaires staff exchange questionnaire surveys and "Young Employee Tea Parties" to understand their needs in
meetings and the Employee Representative Congress. We conduct all-staff satisfaction surveys work life skill enhancement
focusing on key factors such as work environment learning and development compensation and and personal interests. Based
benefits work experience sense of achievement job security self-fulfillment work collaboration on these insights we organize
and corporate culture. In 2025 employee satisfaction at Qiangang Co. Cold-R Co. and Shougang various activities tailored to
Zhixin remained at a satisfactory level while Jingtang Co. achieved a very satisfactory level all young employees continuously
achieving annual targets. exploring the characteristic
activities suitable for young
Assistance for Employees in Need
employees to support talent Youth Theme Discussion Young Employee Tea Parties
The company solves practical difficulties for employees through a precise and diversified assistance retention. Forum
system. Various initiatives including home visits fundraising campaigns employee mutual aid
insurance and the Shougang Assistance Fund are employed to provide multi-channel assistance Physical Health Management
and effectively address the actual needs of employees. In 2025 the company provided aid to 315 The company comprehensively promotes employee health management.employees in need distributed condolence money RMB 2.1865 million. Additionally 405 employees
received special charitable relief totaling RMB 585500. * Through measures such as the health point incentive plan physical fitness tests twice a year and health
lectures delivered by medical experts the company improves employees' health management awareness
Caring for Female Employees and promotes the physical fitness of all employees;
* We advance the employee health care and physical fitness enhancement promotion plan and guide
The company protects the legitimate rights and special interests of female employees ensuring employees in scientific exercise and healthy eating based on individual physical fitness reports making
equal pay for equal work. health a lifestyle concept and promoting the construction of a healthy Shougang Co.;
* Relying on the Employee Health Stations we carry out activities such as online consultation offline
* Organize activities such as outstanding female employee medical check-ups health education and employee health record management and conduct activities
recognition "Women's Innovation in the Workplace" programs such as "Winter Diseases Treated in Summer" Sanfu medicinal patches and winter herbal paste to provide
and female employee discussion forums to empower female comprehensive health management services for employees;
employees with a stronger sense of value;
* We organize scenario-based simulation drills for emergency first-aid skills and carry out emergency
* Organize various activities such as yoga classes mental health rescue training to improve employees' emergency rescue capabilities;
workshops traditional culture and etiquette training nail art
sessions floral arrangement book clubs and movie viewing * Through collaborating with Shougang Hospital to set up the Wang Hongyu Expert Workstation we carry out
activities to enhance the physical and mental well-being of mobile health check-ups medical lectures and green access to healthcare services to alleviate employees'
female employees; difficulties in seeking medical treatment and obtaining medicine. Additionally Jingtang Co. provides Mother-and-baby Care Room real-time medical consultations and medication guidance establishing fast-track channels for medical
* Establish dedicated facilities like female employee activity treatment prescription purchases and precise diagnosis services;
rooms mother-and-baby care rooms and nursing shuttle * Based on the existing emergency medicine supplies in "Employee Homes" we equip them with blood
services to create a more comfortable working environment; pressure monitors and glucose monitors post instructions for use and conduct operational training to
* Raise the standards for distributing female hygiene products achieve full coverage of health monitoring facilities.purchase specialized health insurance for female employees
and offer gynecological health check-ups to prioritize female
employees' health.In 2025 the company organized and planned a series
of featured activities including movie viewing essay
competitions legal education on women's rights protection
yoga training and reading clubs. We also conducted
selections of advanced role models and held discussion Outstanding Female Employee
forums for outstanding female employees. Discussion Forum Health Knowledge Training of Jingtang Co. Health Clinic Activity of Jingtang Co.
78 2025 Shougang Co. Sustainability ReportMental Health Care Colorful Cultural and Sports Activities
The company continuously promotes the "5+N" Psychological Care Action Plan and the Employee The company attaches importance to the employees' spiritual and cultural needs and actively
Psychological Care "211 Project" constantly improving the construction of the employee mental organizes various activities to provide diverse high-quality and targeted services enhancing
health service system. Using the Employee Mental Wellness Center as a platform the company employee engagement and well-being.extensively carries out employee mental health service activities strengthens humanistic care
and psychological care services for employees and builds an all-round and full-cycle service for In 2025 centering on the theme of "Health Empowering a New Journey Striving Together for
employee health. the Future" and the 20th anniversary of the founding of Jingtang Co. a series of activities for the
Employee Culture Festival were held. A total of more than 750 well-designed diverse and popular
In 2025 the company upgraded the Employee Mental Wellness Center organized high-level cultural and sports activities were organized with over 64000 participants achieving the goal of
psychological internal trainer cultivation and professional training for Employee Mental Wellness "competitions every month participation for everyone and highlights everywhere." The company
Center lecturers and held activities such as the "Psychological Care for Harmony" special seminar held sports activities such as basketball football 100-day fitness check-in badminton billiards
exchange meetings the "Happiness Grand Lecture" and practical psychological counseling. table tennis fishing and swimming; cultural activities such as hosting competitions singing
We provided one-on-one psychological consultation and published the Case Collection of the competitions talent shows reading sharing theatrical performances and debate competitions;
"Harmonious Team" Training System—Starting from the Heart and Walking with Love comprehensively and creative activities such as DIY handmade leather crafts home appliance and food carnivals
enhancing psychological service capabilities and ensuring that psychological services accurately garden parties and cooking competitions. Additionally multiple interest groups and training
reach every employee. The company carries out "Employee Happiness" assessments and mental classes for table tennis badminton swimming and yoga were organized to enrich employees'
health assessments on a normalized basis with employees' mental health status and overall cultural activities.happiness index showing a steady upward trend year by year. Diversified services are customized
in layers to cover different groups and key scenarios organizing activities such as workplace
psychology courses yoga training emotional painting and sleep management.High-level Psychological Internal Psychological Sand Tray
Trainer Course Training
In 2025
Awarded the title of "Excellent Unit for Innovative Practice in
'Caring for Employee Happiness'" by the National Employee
Health Promotion Project Office
The "5+N" Psychological Care Model Boosting High-
quality Development of Enterprises was selected as a key
recommended case for national enterprise mental health
typical cases and won the First Prize of Excellent Results in Promoting Enterprise Development
through Mental Health
Shougang Co.'s "Harmonious Team" Training System High-level Internal Trainer Cultivation and
Jingtang Co.'s Implementing EAP to Create a Shared Happy Enterprise Ecological Scenario were
honored with the 2025 Excellent Employee Psychological Service Project Support from the Beijing
Municipal Federation of Trade Unions
Staff Cultural and Sports Activities
2025 Shougang Co. Sustainability Report 79Career Development Paths
In2025
The company has established three career sequences: management professional technology
Won the title of "Excellent Organizing Unit" in the National Employee Health Sports Show and the and skilled operations. Each sequence is designed to provide diverse career opportunities and
runner-up in Tai Chi and Yoga fitness projects clear promotion pathways allowing employees to pursue both vertical advancement within their
The original song Strong Country Dream Shougang Affection won the Special Prize and the Best specialties and horizontal mobility across different functional areas. Relying on "Voyage" full-
Performance Award at the Beijing Employee Culture and Art Festival and the Second Prize in the lifecycle career development management the company continuously provides diverse and
Cultural Creativity track of the first National Employee "Cultural Creativity Position Innovation and
Management Efficiency" Competition precise support for the career development of all employees. Through the "Wave Program"
The original essay A Long and Arduous Journey won the Second Prize in the essay competition of the Individual Development Plans (IDP) talent cultivation plans and post practice cultivation
Beijing Employee Culture and Art Festival plans are systematically formulated for new employees and a "On-the-Job Practice+Targeted
The original poem We Are Coming won the Third Prize in the National Employee Poetry Creation Training+Three-Mentor System" mechanism has been established.Competition
All-staff Training
Growth and Support Focusing on the competency development of its three-tier talent teams the company has established a comprehensive training management system covering business management
Shougang Co. attaches great importance to the growth and development of employees. Through professional technology and skilled operations as well as training programs for relevant
a series of measures such as building systems creating platforms and optimizing carriers the stakeholders. The training content includes qualification programs specialized skills
company helps employees grow and develop together with the enterprise achieving the goals of enhancement and career development training. Additionally the company establishes an Internal
cultivating uniting leading and empowering talents. Trainer Club and nurtures internal trainers in various professional fields facilitating knowledge
sharing development and promotion. A pilot employee knowledge management platform has
The company has established a talent cultivation system that combines all-staff coverage with also been introduced to foster a culture of continuous learning and mutual empowerment. In
key empowerment and spans the entire career lifecycle. Supported by capability technology 2025 the company pioneered the "Famous Teachers and Excellent Courses" competition brand
evaluation technology and development technology and through the development paths of building and successfully held the first Internal Lecturer Competition. It formulated the Internal Trainer
the three-tier talent career channel system the "Voyage" high-potential talent empowerment Management System developed 415 internal courses and evaluated and certified 254 boutique
and development system and the all-staff training management system for the three teams the courses to be included in the knowledge base.company has formed a development management system featuring "Three Teams Three Series
and Three Channels" and "vertical promotion and horizontal transition." This creates an ecosystem
conducive to talent growth and development laying a solid foundation for the sustainable Holding the "Famous Teachers and Excellent Courses" Competition
development of the enterprise. The 2025 Talent Work Promotion Plan was formulated to further
promote the talent team building of Shougang Co. and accelerate the construction of an agile talent In September 2025 the company successfully held
supply chain management system. the first "Famous Teachers and Excellent Courses"
Competition. With the core mission of "extracting
implicit knowledge polishing boutique courses
empowering employee growth and promoting talent
Managemen
t development" nearly 160 employees participated
covering six major job families. The course content
illed was closely related to actual production and operations. Through systematic training and Sk
Vertical eration
s
p competition the "Top Ten Lecturers" "Top Ten Courses" and Excellent Organizing Units Advancement O were finally selected. This competition not only selected internal trainer resources and
sional accumulated boutique courses but also built a knowledge-sharing platform. It further Profes
Technology improved the company's talent cultivation and incentive mechanisms strengthened the
organizational learning system and talent echelon construction and laid a solid talent
Horizontal Mobi
lity foundation for continuously promoting the high-quality development of the company.
80 2025 Shougang Co. Sustainability ReportThe training courses focus on leadership enhancement with customized course designs
incorporating business simulation exercises case-based teaching and interactive
instruction. Training programs such as the "Cyan" Training Camp Deep Blue Training
Camp Blue Star Youth Training Camp and Leadership Grand Lectures are conducted
to improve the professional quality and comprehensive management capabilities of Basic Training Expansion Career Self-Study Training and
leaders. In 2025 precisely aligning with the company's strategic priorities and core Training Planning Assessment
annual objectives we developed a customized curriculum and launched the Leadership
Grand Lecture series. This initiative effectively strengthened the strategic oversight and
operational management capabilities of our senior leadership team.The goal is to develop highly skilled professionals with broad vision exceptional
capabilities and a strong drive for innovation as well as to cultivate technical managers
who lead professional advancements and master cutting-edge industry technologies.The company has organized advanced interdisciplinary technical training programs Centralized Mentor-Mentee Post Career Online and Offline Assessment
Technological Innovation Youth Training Camps and professor forums. We facilitated Induction Coaching Practical Planning Independent and
regular benchmarking exchanges and provided courses and discussions on steel industry Lectures & Guidance Exercises Guidance Learning Evaluation
frontiers and advanced technologies. Key personnel are encouraged to participate in Program
high-end forums and specialized business exchanges systematically enhancing their
professional knowledge and technical expertise.Metrics and Targets
Focusing on improving professional ethics and vocational skills a tiered cultivation Shougang Co. tracks and monitors human resource-related targets and ensures the achievement
mechanism for reserve on-the-job and gold-level talents was constructed. The company of annual goals through regular evaluations supervision and follow-up actions.continuously conducts hands-on technical training vocational skill competitions and
organizes events such as the Craftsman Lecture Hall to strengthen employees' problem
identification analysis resolution and job proficiency.Indicator Unit 2025 Goals 2025 Results
To help new employees quickly integrate into the enterprise solidify their post foundation Establish a Strategic Human
Resource Structure Employee Satisfaction /
Satisfactory- Satisfactory-/Very
Level Satisfactory-Level
clarify career development paths and enhance post adaptation capabilities systematic
training courses are designed and carried out around five major modules: basic training
expansion training career planning self-study and training assessment. Through forms Training Plan Fulfillment Rate % 90 94
such as centralized induction lectures mentor-mentee coaching & guidance program Preserve and Enhance Human
post practical exercises career planning guidance online and offline independent Capital Value Training Coverage Rate
learning and assessment the company helps new employees quickly complete the of On-Duty Employees % 100 100
role transition from campus to workplace solidifies their vocational skills and quality
foundation and deeply integrates them into the corporate culture and post work injecting
fresh vitality into the enterprise's talent echelon construction. In the future Shougang Co. will comprehensively enhance the foresight systematicness and
effectiveness of its talent work accelerate the implementation of the "Talent-driven Enterprise"
strategy and build a strategic human resource management system. We aim at steady and
continuous improvements in the total volume quality and efficiency of talent as well as in talent
work creating a favorable situation for the common development of employees and the enterprise.These efforts will foster a vibrant and capable talent team to support the goal of building a world-
competitive and influential listed steel company.
2025 Shougang Co. Sustainability Report 81
For Business For Technical Management
For Skilled Operators
Management Personnel Personnel For New EmployeesOccupational Health and Safety Shougang Co. has established and improved an all-staff production safety responsibility system and formulated 56 systems including the Safety Risk Classification Control and Hazard Investigation
and Management System the Occupational Disease Hazard Monitoring and Evaluation Management
Shougang Co. remains committed to the principle of "People First Life First" anchoring its goals System the Stakeholder Safety Management System the Emergency Rescue Management System for
on zero production safety accidents and zero occupational health injuries. Aiming to become a Production Safety Accidents the Safety Production Reporting and Reward Management System the
Production Safety Accident Management System and the Safety Education and Training Management
world-class demonstration enterprise for production safety we have constructed a "Five-in-One"
System. These cover safety education and training hierarchical risk control hazard troubleshooting
occupational health and safety management system. By leveraging technological empowerment
and treatment occupational disease prevention and emergency rescue applicable to employees
innovation and data-driven strategies we strive to create a safe and stable operating environment and related parties (including suppliers and contractors). We comprehensively standardize safety
ensuring high-quality development through high-standard safety management. operation processes in all links strengthen source prevention process control and comprehensive
The company strictly complies with laws regulations and relevant requirements such as the treatment of occupational disease hazard factors and ensure the effective implementation of
Production Safety Law and the Law on the Prevention and Control of Occupational Diseases. We adhere occupational health and safety management. In 2025 the company revised systems such as the
Safety
Management System for Operations in Limited Spaces and Management Measures for Production Safety
to the integrated management of production safety and occupational health fully implement the
Dual Prevention and Control System to ensure the compliance and advancement of the systems.all-staff production safety responsibility system improve systems and procedures strengthen risk
control and strictly guard the red line of safety and health to effectively protect the life safety and The company has established and improved a safety standardization management system and
physical health of employees. During the reporting period the investment in production safety founded the Safety Standardization Management Committee. We promote systematic safety
amounted to RMB 152 million. No production safety accidents of general grade or higher occurred management standardized post operations essential safety of equipment and facilities and
customized operation environments. 12 units including ironmaking and steel rolling have obtained
and a steady trend of production safety was continuously maintained.the Level 1 Enterprise Certification for Production Safety Standardization. The company and its
Governance bases have respectively passed certifications for the Occupational Health and Safety Management System and the HSE Management System. The certificate-holding rate for special operation
In accordance with the requirements of the Production Safety Law and other laws and regulations personnel and the safety qualification certification coverage rate for key positions have both
Shougang Co. has established a Work Safety Committee to strictly implement national production reached 100% maintaining the compliant and steady operation of the safety management system.safety laws and policies and comprehensively coordinate the company's safety management work.The specific responsibilities of the Work Safety Committee its office each production unit and
operation department in the field of occupational health and safety are clarified to ensure that the
primary responsibility for safety is implemented level by level.The Work Safety Committee chaired by the General Manager with the deputy general manager in
charge of safety and the Chief Safety Officer serving as Deputy Chairs.Leadership Responsible for leading the implementation of national safety laws and policies formulating and
Level overseeing the company's safety management strategy and making guiding and strategic decisions
for workplace safety.The Work Safety Committee Office (located in the Safety Department) and relevant functional
departments.Supervisory and Responsible for supervising all units at all levels in implementing the decisions of the Work Safety
Management Level Committee coordinating and guiding the safety work of relevant departments and ensuring that
various safety management measures are effectively executed.Production units and operational departments. ISO 45001:2018 Occupational HSE Management System Jingtang Co. Occupational
Responsible for implementing the decisions and measures of the Work Safety Committee into daily
Execution Level Health and Safety Health and Safety
work and ensuring the safety of production and operations by strictly complying with safety operating Evaluation Certificate
procedures. Management System Management System
Certification Certificate Certification Certificate
82 2025 Shougang Co. Sustainability ReportStrategy
Shougang Co. always regards occupational health and safety as the cornerstone of enterprise development. Adhering to the policy of "Safety First Prevention-Oriented and Comprehensive Management" we
have built a safety management approach led by safety culture with safety standardization construction as the main line "dual-control" mechanism construction as the core intrinsic safety management as
the focus digital and intelligent construction as the means and system-based construction as the support. The company comprehensively promotes the modernization of the production safety governance
system and governance capability continuously improving production safety capability and employee occupational health levels. In occupational health and safety management the company adheres to the
guidance of system thinking data thinking and innovative thinking to systematically identify and respond to relevant risks and opportunities. We continuously improve the occupational health and safety
management system strengthen control in key areas such as major hazard sources and occupational disease hazards and deepen risk prevention and control capabilities relying on data integration and
analysis to break information barriers and improve the level of refined management. Through the deep integration of technological and management innovation it effectively prevents various risks and
coordinates the promotion of safety development and governance efficiency ensuring that risks are under control overall.Risks and Opportunities Management
Shougang Co. has established a full closed-loop safety risk management process covering risk identification risk assessment safety planning process control and evaluation improvement to eliminate or
prevent safety risks and hazards in the production process from the source. We carry out dangerous source identification and risk evaluation throughout the process on a normalized basis to achieve effective
hierarchical risk control. Relying on the hierarchical risk control list it realizes comprehensive troubleshooting and treatment of production safety risks promoting the dynamic clearing of hazards. Through
systematic construction intrinsic safety management data-driven analysis and innovation the company continuously enhances its ability to prevent and resolve major risks.Potential Risk /
Opportunity Type Business and Financial Impact Time Horizon Response MeasuresDescription
Causes employee casualties triggers interruptions Build a "Five-in-One" occupational health and safety management system; rely on digital and intelligent platforms for real-
in key production line processes leads to damage of time monitoring of dangerous scenarios and automatic alerts; innovate the creation of "hazard-free units" in high-risk areas;
Production safety core equipment and facilities resulting in production Short & implement an analogy-based accident reverse troubleshooting mechanism; carry out source treatment of major accident
accidents Risk loss equipment maintenance costs and work injury Medium hazards; improve the emergency rescue system increase rescue equipment carry out collaborative and practical drills compensation; faces fines from regulatory authorities Term and optimize emergency response processes; strictly execute certificate-holding for special operation personnel and safety
and potential breach of contract costs due to delayed qualification certification for key positions and implement the all-staff production safety responsibility system; deepen safety
delivery. culture construction and conduct multi-level training to strengthen safety awareness and standardized operation capabilities.Causes health damage to employees in hazard- 100% detection of occupational disease hazard factors and 100% occupational health examination for exposed personnel;
exposed positions leading to decreased labor build a digital gas monitoring platform install fixed alarms equip portable detectors and promote protective devices such
Inadequate control efficiency increased occupational health medical Medium & as sealing covers to curb dust spillover; use "four-new" technologies (new technologies new processes new materials and of occupational Risk and rehabilitation expenditures; may be ordered by Long Term new equipment) for special research on noise reduction dust reduction and toxic hazard reduction promoting automated disease hazards regulatory authorities to rectify production lines and intelligent operations to shorten hazard exposure time; carry out occupational health protection knowledge training on a
incurring investment in work environment renovation normalized basis to ensure a 100% pass rate in employee assessments enhancing all-staff protection awareness and practical
and protective equipment upgrades. literacy.Construct a unified stakeholder coordination management system and promote the "Four-in-One" management model;
Inadequate safety Production interruptions and delays directly threaten implement comprehensive hierarchical control and early intervention for related parties carry out safety risk identification with management operational continuity and business delivery while Medium & dynamic updates and execute a "double verification and double confirmation" mechanism for high-risk projects; incorporate of related party Risk
maintenance leading to multiple financial losses such as equipment Long Term
key personnel of related parties into the company's internal training system; establish a safety evaluation mechanism for
operations repair and capacity stagnation.related parties linking evaluation results with rewards punishments and business cooperation; promote "one code per
person" information management and "one policy per enterprise" precise assistance and advance the construction of a reward
mechanism for hazard reporting by related parties.Deepen the application of the "Shougang Safety Wisdom Hub" to achieve real-time integration and intelligent analysis of full-
Digital and Improves the efficiency of safety risk identification and link data; independently develop a digital and intelligent platform for Lockout-Tagout (LOTO) to achieve intelligent control of
intelligent safety Opportunity response which can both reduce direct losses from Medium & energy isolation; apply "IoT molded case circuit breakers" at key points to ensure no injury from electric shock and no fire from management safety accidents and optimize manpower allocation for Long Term short circuits; expand the application scenarios of video AI identification models to cover more typical risk scenarios achieving
upgrade safety inspections saving management costs. automatic identification of dangerous behaviors and potential hazards; promote the transformation of "mechanization replacing
humans and intelligence enabling unmanned operations."
2025 Shougang Co. Sustainability Report 83Safety
Improvement
Building a Standardized Operation System
Risk Risk Safety Process Evaluation and
Identification Assessment Planning Management Improvement Following the "1215 " safety production standardization management model the company
Safety Culture enhances the in-depth analysis and resolution of hidden hazards and establishes a regulatory
Construction Safety Performance compliance verification mechanism.Evaluation
Safety Standardization
Construction Safety Standardization Building a "Three-in-Charge Three-in-Must" Management System
System Certification
Dual-Control Mechanism
Laws and Requirements Construction Occupational Health and Anchored in the responsibilities of professional departments the company has implemented
regulations of Relevant Safety Management System a structured responsibility list management system to clarify key safety obligations eliminate
Identification Stakeholders Intrinsic Safety Certification
and Standard bottlenecks in professional system compliance and ensure a deep and practical approach to Management
Specifications HSE System Evaluation accountability covering awareness of responsibilities clear role definitions duty fulfillment
Digital and Intelligent diligence accountability enforcement and responsibility tracing.Construction
Systematic Building a Safety Management System for Change Projects
Construction
Centered on changes in process technology energy media personnel organization and
Safety Risk Management Process facilities the company has developed a comprehensive control mechanism through top-level
design. This system defines hierarchical management standards control principles and
evaluation systems while enhancing professional collaboration.Types of Potential Safety Hazard Inspections
Building a Unified Stakeholder Coordination Management System
In 2025
Daily Potential Safety Hazard Inspection With a risk management-focused approach the company implements the "Four-in-One"
management model which includes identifying risks together formulating measures
Comprehensive Potential Safety Hazard Inspection together training personnel together and evaluating performance together. This system
1344 Special Potential Safety Hazard Inspection ensures early intervention in hazardous operations tiered review of control measures hands-Times on training for critical positions and joint evaluation of safety performance.Seasonal Potential Safety Hazard Inspection
Safety Inspection
Expert Diagnostic Potential Safety Hazard Inspection Building an Emergency Rescue System
Focusing on shortcomings and weaknesses the company continuously improves emergency
response plans deepens job coordination and joint drill mechanisms and upgrades
emergency rescue equipment. We focus on resolving critical rescue challenges and conducting
practical drills in different time periods and extreme weather conditions."Five-in-One" Occupational Health and
Safety Management System Additionally the company has built a closed-loop accident reporting investigation
and handling mechanism covering accident occurrence information reporting rescue
investigation report formation rectification and aftermath and summary education. Through
full-process control we accurately identify the root causes of accidents deeply learn from
lessons and promote the implementation of rectification measures to achieve continuous
optimization of safety management."Three-in-Charge Unified Stakeholder
Standardized Three-in-Must" Safety Management Coordination Emergency
Operation Management System for Change Management Rescue System
System System Projects System 5 121: 1-- Participate in a national work safety standardization review once every three years 2-- Two internal audits every
year 1-- An external institution is engaged annually to conduct one external audit every year.
84 2025 Shougang Co. Sustainability ReportDigital and Intelligent Safety Management Occupational Health Management
The company upholds the philosophy of "Technology for Safety Data and Intelligence for The company implements full-chain occupational health control measures strictly complies with the
Security" actively embracing intelligent and digital transformation. Driven by innovation and Law on the Prevention and Control of Occupational Diseases and other regulations and formulates the
guided by technology we continuously promote the digital and intelligent upgrade of safety Occupational Disease Prevention and Control Plan and Implementation Scheme clarifying management
management. Through information and digital means the company promotes essential goals implementation paths and responsibility division. Through carrying out occupational disease hazard
safety management by implementing initiatives such as: enhancing maintenance safety to status evaluation daily monitoring and high-toxicity evaluation it achieves 100% coverage of occupational
improve efficiency and reduce risks developing auxiliary work equipment for operations
disease hazard factor detection. It organizes occupational health examinations for all personnel exposed
replacing manual work with mechanization and advancing unmanned intelligent operations.to occupational disease hazard factors with a 100% examination rate and takes timely intervention
These efforts have significantly improved both safety and operational efficiency.measures for abnormal conditions. It carries out occupational health protection knowledge training on
In 2025 the company's independently developed "Shougang Safety Wisdom Hub" integrated a normalized basis with a 100% pass rate in employee assessments continuously improving all-staff
4 major platforms and 16 sectors achieving real-time integration and intelligent analysis awareness and practical literacy.
of full-link data such as safety risks hazard inspection and operation control. We launched
the industry's first digital and intelligent platform for LOTO and applied IoT circuit breakers Occupational Hazard Protection Management
at 40 points to enhance electricity safety. Five video AI identification models were specifically The work site is equipped with fixed alarms and portable detectors for toxic and harmful gases. A digital
developed covering typical risk scenarios such as water accumulation in molten metal gas monitoring platform has been built and AI identification for helmet wearing has been independently
impact areas and personnel falling enabling real-time automatic identification of dangerous developed to improve supervision levels. Regular supervision and inspections are carried out to ensure
behaviors and potential hazards effectively improving the intelligence level and response the integrity and effectiveness of occupational hazard protection facilities such as dust prevention toxic
timeliness of safety monitoring. 586 key process parameters realized automatic warning. prevention and heatstroke prevention and cooling.Upgrading of Production Safety Information Occupational Hazard Research and Treatment
Platform and Intelligent Control For high-risk points of occupational hazards the company combs through operation content
decomposes operation steps and focuses on points with high personnel density and frequent/long-
To deepen occupational health and safety management the company steadily term exposure. By promoting mechanized automated and intelligent operation systems it shortens
promotes the upgrade of the production safety information platform. A employee exposure time and frequency. Using protective devices such as sealing covers it effectively
comprehensive platform framework covering safety occupational health harmful curbs dust spillover and continuously optimizes the operation environment. In 2025 the company
gases and smart fire protection has been initially established.carried out 32 special research and treatment projects for noise dust and toxic hazard reduction to
In terms of functional module construction several core modules have been
developed and put into trial operation covering key areas such as production reduce hazard risks from the source.safety investment and occupational health management. By breaking down data
silos across multiple internal systems an intelligent safety control system with
data linkage and collaborative response has been initially constructed achieving In 2025
precise inspection and intelligent analysis of dangerous operations. Centering on
key scenarios such as major hazard source evaluation and safety early warning a
series of data analysis models have been developed to enhance safety management
evaluation capabilities for key areas and related parties. In addition the company
actively deploys video and AI models for real-time monitoring and hazard
identification in high-risk links. Some AI models have identified safety hazards
hundreds of times since their launch effectively supporting the early discovery and 100% 100% 100%
early warning of site safety risks. The coverage rate of The coverage rate of The detection rate of
occupational disease occupational health occupational disease
The company's platform construction has further strengthened the risk prevention prevention knowledge training examinations hazard factors
capability driven by data laying a solid foundation for the company's safety
management transformation towards digitalization and intelligence.
2025 Shougang Co. Sustainability Report 85Stakeholder Safety Management In 2025 the company continued to optimize the unified stakeholder coordination management
system deepening full-process safety control effectiveness. We piloted the reward mechanism for
The company fully implements the requirements of the Criteria for Identifying Major Accident Hazards hazard reporting explored the application of "AI identification for hazard pictures + regulation index"
in Industrial and Trading Enterprises and other regulations for related party safety management. and completed "one code per person" information management for related party personnel. Targeted
We elevate the unified coordination and management of related party production safety to a assistance with "one policy for one enterprise" was implemented for key related parties to solve
strategic height and are committed to building a systematic "Unified Stakeholder Coordination various safety management difficulties driving an 85% decrease in the incidence of similar hazards.Management System." With risk pre-control as the core and through in-depth on-site investigation Hazardous Chemicals Management
and diagnosis it accurately identifies common difficulties and underlying laws in related party
safety management. On this basis it has innovatively launched and implemented the "Four-in- The company strictly executes safety management norms for hazardous chemicals. Through
One" management model effectively realizing systematic integration and full-process supervision measures such as full-process risk verification double confirmation during loading and unloading
of related party safety operations. At present the system has entered a stage of normalized and graded and categorized storage control special safety measures for storage tank accessories
orderly operation significantly enhancing the overall risk resistance capability of the supply chain targeted end-use control precise traceability of waste disposal and strengthened management of toxic and hazardous areas the company ensures effective control throughout the entire lifecycle of
and cooperation network and solidifying the safety foundation for the sustainable development of hazardous chemicals.the enterprise.In 2025 the company carried out systematic work around full-lifecycle control: comprehensively
inspecting 10 types of key hazardous chemicals such as hydrogen sulfuric acid and LNG;
Joint Risk Identification investigating 408 sets of main equipment; collecting and organizing 170 regulations and standards;
The company classifies and manages related parties based on their business attributes and workforce size newly identifying 18 risks; inspecting 64 storage tanks; identifying and rectifying 30 hazard issues;
defining management principles inspection standards and inspection frequency. Specialized departments and verifying 44 manual operation projects further strengthening the precision and effectiveness of
project owners safety management personnel and related parties jointly conduct on-site safety risk hazardous chemical safety management.identification ensuring comprehensive all-encompassing risk assessments with continuous dynamic updates.Fire Safety Management
In 2025 the company optimized related party classification standards dividing related parties into Grade
A Grade B and Grade C entities based on operation scale risk maintenance and safety performance The company attaches great importance to fire safety management and
implementing differentiated management. Meanwhile through the pilot installation of 52 "IoT molded case has built a comprehensive management system covering prevention
circuit breakers" it achieved essential safety improvement of "leakage without electric shock." emergency and innovation promoting the comprehensive improvement
Joint Measure Implementation of fire protection safety capabilities through standardization intelligence
and innovation.For high-risk projects the company organizes specialized departments project owners supervisors and
other relevant units to collaboratively develop targeted control measures for related parties ensuring
effective risk mitigation. Standardization and Smart Construction
In 2025 for high-risk maintenance projects a "double verification and double confirmation" mechanism Six core fire safety systems were revised and two professional standards containing 815 detailed
was executed control measures were solidified and maintenance tooling was developed and promoted. rules were innovatively compiled. Big data was used to analyze fire facilities and alarm data to
Joint Personnel Training optimize the functional connection of the smart fire protection platform. The digitalization path
of the fire protection system was systematically planned effectively reducing the risk of high-
A comprehensive tiered training plan has been established integrating high-risk workers construction team frequency alarms.leaders and safety management personnel from related parties into the company's internal training system.Through standardized training their safety awareness and professional skills are significantly enhanced. Responsibility and Control System Optimization
In 2025 several types of physical experience training projects such as forklift blind spots and dust/gas An "order-based" performance responsibility list and inspection standards covering key areas were
explosions were added and backbone personnel of related parties were organized for training. innovatively formulated. A full-chain management and verification mechanism for fire protection in
Joint Performance Evaluation construction projects was established. Precise training and publicity activities were carried out and
excellent management experiences were promoted with special assistance provided.The company has formulated assessment criteria and evaluation cycles for related parties conducting
regular safety performance evaluations. Assessment results are directly linked to meetings workload Hazard Troubleshooting and Treatment
reduction or termination of cooperation ensuring that related parties continuously improve their safety
management standards. Fire hazard inspection and rectification are carried out on a normalized basis. Key facilities such
In 2025 the company promoted related parties to establish and improve internal safety reward and punishment as fire alarm controllers and fire hydrants are comprehensively inspected and a long-term control
mechanisms clearly including 11 types of violations in "blacklist" management identifying 453 safety hazards mechanism is established. Joint fire inspections for projects under construction are strengthened
of related parties implementing assessments and imposing entry restrictions on violators. key fire renovation projects are promoted and the creation of "no potential safety hazards units" is
actively pursued.
86 2025 Shougang Co. Sustainability ReportEnhancing Practical Firefighting Capability * The "Production Safety Month" activities were fully carried out focusing on 4 major categories and 31
work arrangements. Safety theme publicity and training on safety laws and regulations were conducted
The emergency plan system is improved linkage disposal schemes are formulated and practical
drills are carried out monthly. Emergency disposal QR code cards are produced. The emergency in various forms. Special activities such as the "Hazard Hunter" promotion competition special training
response process for unattended points is optimized emergency equipment is increased and and emergency drills were organized simultaneously.new technologies such as fiber optic temperature sensing detection are piloted. We compiled * Taking the Leadership Grand Lectures and safety warning education as carriers the company promoted
professional training materials conducted systematic training for relevant personnel and the integration of annual key tasks and safety culture forming a three-level safety goal system
organized a fire protection innovation competition and promoted outstanding achievements. containing 1 Type I veto indicator 20 Type II key and culture indicators and 5 Type III innovation and
Technological Innovation Empowerment efficiency indicators.The company independently developed and applied fire-specific equipment and tools such as the * The "Safety Home Culture" evaluation system was optimized and improved adding innovation evaluation
outdoor fire hydrant rapid positioning system and new-type fire hoses. Multiple management content such as safety improvement research and patent papers. A standardized safety home culture
innovation achievements were formed and relevant patents obtained effectively enhancing the evaluation mechanism with 3 categories of assessment 18 clauses and 35 detailed rules was
comprehensive effectiveness of fire warning firefighting rescue and emergency evacuation. established.Emergency Safety Management Building a Closed-loop Safety Training System from
To strengthen and improve the emergency rescue system the company has implemented a series
of institutional safeguard measures to clarify the responsibilities of all levels of personnel. An Awareness to Behavior
emergency management organization has been established headed by the General Manager
responsible for coordinating and overseeing all emergency rescue operations. The company has Focusing on job-related risks and actual on-site needs the company has built a layered and categorized
developed 2 emergency response plans including the Comprehensive Emergency Plan for Production
Safety Accidents and the Comprehensive Firefighting and Emergency Evacuation Plan which have safety training system to enhance all-staff safety literacy and practical ability:
been reviewed and filed by the government ensuring their legality and effectiveness. To enable Strengthening Practical Experience for High-risk Operations
quick onsite response the company has developed emergency response cards outlining the
processes and key steps for emergency handling. For high-risk positions such as gas operations limited space and high-altitude operations the
company built a hierarchical and classified safety training system to let employees personally
The company has innovatively implemented a collaborative emergency rescue model organizing
cross-position and cross-regional drills establishing a collaborative network and improving the experience operation risks. Over 15000 person-times have been trained effectively enhancing
information communication mechanisms. For areas with high emergency rescue difficulty such risk perception and safety operation capability.as limited spaces and heights the company starts from equipment skills and plans to overcome Solidifying Grassroots Management Capability
difficulties. Information technology is used to enhance the overall efficiency of emergency rescue to
ensure accurate and efficient rescue operations. The company organized special training for team leaders focusing on emergency management
In 2025 the company continued to improve the emergency management system and systematically risk control behavioral safety and intrinsic safety management to promote the company's safety
carried out multi-level and multi-form emergency drills. 153 collaborative drills for cross- management requirements throughout the grassroots. In 2025 we conducted training for 1516
departmental process misoperation and equipment failure were organized; 18 interview-style person-times of team leaders.desktop walkthroughs and "double random" practical drills were conducted; and 1040 hierarchical
emergency drill evaluations were completed. Through drill practices 965 emergency disposal Promoting "Safety Talk by People Around You"
measures were accumulated and improved 651 emergency disposal cards were revised and 30 Over 450 team junior instructors were cultivated and over 3400 "5-minute field classrooms" were
problems were discovered and rectified. Meanwhile 418 difficult points for emergency rescue were conducted covering over 38000 person-times pushing training close to the on-site and providing
systematically researched and treated effectively enhancing the overall emergency response and
disposal capability. precise empowerment. Through evaluation incentives and video tours experience sharing and
effectiveness enhancement are promoted.Safety Culture Construction Carrying out Systematic Special Training
Relying on internal and external expert resources 12 special training sessions were carried out
The company has formulated the Safety Culture Construction Implementation Plan and established
a Safety Culture Construction Management Organization led by the General Manager. The plan around themes such as major hazard determination emergency rescue and occupational health
outlines clear objectives and implementation measures. Leveraging Safety Committee at all training over 5600 people and continuously strengthening professional cognition and compliance
levels and operational department safety committees we plan and implement safety culture capability.initiatives. Employee representatives are invited to supervise the implementation of safety culture Deepening Normalized Warning Education
responsibilities ensuring public supervision.Combining industry cases and policy requirements the company carried out more than 720
In 2025 the company systematically carried out multi-level and multi-form safety training. warning education sessions through regular safety meeting learning platform self-study and
Among them "Leaders and Professionals on the Podium + Team Junior Instructors" training centralized warning during maintenance covering over 7500 person-times urging all staff to
was conducted 6714 times covering 76334 person-times; "Experience + Perception" training take cases as a mirror and learn by analogy.was conducted 277 times with 6920 person-times participating; "Typical Hazard + Post
Characterization" training was conducted 792 times with 5455 person-times participating.
2025 Shougang Co. Sustainability Report 87Goals Target Completion in 2025
Safety Publicity and Consultation Day Activities 0 major or severe production safety accidents (including fire accidents) occurred Achieved
0 occupational disease-related accidents 0 newly added occupational diseases Achieved
To deepen safety culture construction the company organized a special Safety Publicity
and Consultation Day activity during Safety Month. The activity innovatively adopted a multi- Injury frequency rate per million hours worked controlled within 0.65 Achieved
dimensional mode of "Experience + Science + Interaction" setting up more than ten theme 100% completion rate of safety education training and emergency drill plans Achieved
exhibition areas such as VR safety experience technology-assisted safety display and 100% completion rate of annual hazard rectification within deadline Achieved
prize-winning knowledge Q&A. Cutting-edge safety technology applications such as drone 30% reduction in the risk value of key project challenges Achieved
acoustic imaging inspection and intelligent fire identification systems were presented. Over
3000 copies of publicity materials were distributed on-site attracting over 1000 person- In 2025 in addition to achieving various goals the company achieved significant achievements in
times from grassroots units functional departments and related collaborative units. innovative practice and achievement transformation in the field of safety management. 3 papers
related to safety management were published 26 patents were applied for 3 software copyrights
This activity not only enhanced employees' safety awareness and emergency skills through were registered and 1 management innovation achievement was formed. The company participated
immersive experience and interactive science popularization sessions but also vividly in formulating 1 industry standard and 1 group standard and took the lead in the formulation of 2
demonstrated the strong support of technological innovation for safety management local standards. It won 2 Third Prizes of the Metallurgical Science and Technology Award 1 First
further creating a strong atmosphere of "Everyone talks about safety and all staff Prize of the Beijing Enterprise Management Modernization Innovation Achievement Award and 4
participate in governance" playing an active role in continuously consolidating the patents won Bronze Awards at the National Exhibition of Inventions. The professional and innovative
foundation of the company's safe development. level of the company's safety management has been further improved.
2624
Patents Applied Take the Lead in the Formulation Bronze Awards at the National
of Local Standards Exhibition of Inventions
In the future Shougang Co. will always adhere to the safety management work approach of
"casting roots and souls guided by safety culture; providing standardized guidance with safety
standardization construction as the main line; taking the construction of the 'dual-control'
mechanism as the core and moving the front line of prevention forward; focusing on intrinsic
safety management to improve efficiency and reduce risks; taking digital and intelligent
construction as the means to empower safety development; and supported by systematic
construction we consolidate the foundation and strengthen the fundamentals." Anchoring the
Metrics and Targets core goal of "Zero Accidents in Production and Zero Injuries in Occupational Health" the company
will deepen the "Five-in-One" occupational health and safety management system construction
To strengthen the effectiveness of safety production management the company has developed expand application scenarios for AI risk identification and smart emergency response and
medium- and long-term safety production goals and plans tailored to its operational realities. promote the upgrade of intrinsic safety management levels. We will continuously optimize the
These plans ensure that all safety production measures comply with legal and regulatory full-chain control of occupational health and the unified stakeholder coordination management
requirements and through detailed planning ensure that the implementation process remains system deepen precise "one policy for one enterprise " assistance and joint risk prevention and
legal and compliant. The company's goal is to achieve dynamic elimination of major accident build a strong supply chain safety barrier. Meanwhile we will enrich the carriers of safety culture
hazards strictly control the injury frequency rate per million hours worked within 0.65 decisively construction strengthen all-staff safety literacy cultivation and create an industry-leading safety
curb serious and major production safety accidents and strictly prevent general production safety production demonstration benchmark with standardized innovative and normalized safety
accidents. In 2025 the company achieved zero production safety accidents of general grade or management practices providing more solid safety protection for the high-quality and sustainable
higher and all safety goals were successfully met. development of the enterprise.
88 2025 Shougang Co. Sustainability ReportSocial Contributions In 2025 the company's youth volunteer service team was
honored as the "Capital's Best Volunteer Service Organization."
Shougang Co. actively supports the development of public welfare causes aligning with the company's
mission and strategic goals. Key areas of focus on public welfare support include rural revitalization disaster
relief volunteer services environmental protection educational assistance and industry development. Each
year the company develops a public welfare support plan that defines public welfare projects and budgets
which are coordinated and promoted by the Union and the Communist Youth League Committee. 1805Persons 3432Person-times 13473Hours
Rural Revitalization Total beneficiaries of support initiatives Employees participating in volunteer activities Total volunteer activities hours
The company expands the achievements of poverty alleviation and implements consumption-based
assistance to help comprehensively promote rural revitalization. In 2025 the company purchased
agricultural products worth RMB 2.7195 million from designated assistance areas including Xinjiang Caring for the Elderly
jujubes Xinjiang grapes Yangyuan potatoes Fuping millet Yanqing miscellaneous grains and Chifeng
netted melons. In March 2025 the company organized youth volunteers to conduct a series of
Community Engagement volunteer services for the elderly. They visited the Xinyuan Nursing Home in
The company strives to improve the quality of life and development level of local communities through Qian'an City bringing condolences and providing thoughtful services such as
charitable donations assisting in the construction of kindergartens conducting "Learning from Lei Feng" haircuts environmental cleaning and companionship. Focusing on the anti-fraud
series activities actively organizing employees to participate in volunteer activities and the "Yi Gang needs of the elderly they carried out the "Not Falling Behind in the Digital Age
Xing" Charity Association. For 12 consecutive years the company has organized "Learning from Lei Feng" Protecting the Elderly Against Fraud" activity in communities. They explained fraud
activities in communities providing services such as free health consultations haircuts knife sharpening cases and prevention techniques and assisted over 40 elderly people in installing
and small appliance repairs to neighboring residents contributing Shougang Co.'s strength to building a the National Anti-Fraud Center APP building a solid defense line for property
better community. We also participate in volunteer services for events such as the CIFTIS and WTT China safety. These activities brought warmth and protection to the elderly while enabling
Smash on a normalized basis. In 2025 the company organized the "Donate 1 RMB Walk Together" step youth volunteers to grow and demonstrating the company's social responsibility.donation activity donating public welfare funds to the "Distressed Children Care" project through the Youth
Fitness Association and organized "Showing Love" donations totaling RMB 889200."Yi Gang Xing" Charity Association
The "Yi Gang Xing" Charity Association of Jingtang Co. is a public
welfare organization founded spontaneously by employees in 2022. With
a core focus on public welfare education assistance elderly care and
volunteer services it provides long-term financial aid to underprivileged
students in the Caofeidian area. It also offers donations and material
support to families in need and organizes various volunteer activities.The association continues to elevate our public welfare initiatives
demonstrating the social responsibility and compassion of state-owned
enterprise employees while giving back to society through practical
actions and contributing to harmonious social development.
2025 Shougang Co. Sustainability Report 89Governance Solidifying the Governance Foundation
"Caring for Children with Autism" Public Welfare Activity Education-Oriented
The company deepens cooperation with universities such as Beijing University of Science and Safeguarding Sustainable Development
In April 2025 Jingtang Co. in collaboration with nine Technology and China University of Mining and Technology to jointly build practical education bases.partner enterprises and charitable organizations This innovates new mechanisms for school-enterprise collaborative talent cultivation working
together to create a comprehensive educational platform integrating professional construction
launched the "Lighting Up the Stars: Caring for Autism" practical education teacher capability enhancement talent training educational reform industry-
initiative. Held at the Caofeidian Wetlands the event university-research cooperation scientific achievement transformation and social services.provided a supportive and interactive environment for Through resource sharing and complementary advantages the company provides a stage for
over 100 autistic children and their families. Through university students to practice and grow achieving a positive cycle of educational empowerment
talent showcases interactive games and gift exchanges and sustainable development.the initiative offered a platform for children with autism Environmental Responsibility
to express themselves and connect with society The company actively promotes green development concepts and fulfills environmental
fostering a spirit of community care and understanding. responsibilities by organizing voluntary tree planting and Environment Day theme activities. We
conduct environmental volunteer services such as sanitation cleaning tree planting and waste
sorting. In 2025 Jingtang Co. held four "Sea Blue" theme environmental public welfare activities in
Caofeidian and Beijing. Through interactive and engaging activities such as environmental classrooms
and games it promoted Jingtang Co.'s green development philosophy led participants in learning
Conducting Volunteer Service Activities environmental knowledge and provided an immersive environmental protection experience which received widespread participation and high recognition from residents in both locations.The company carries out volunteer service activities through an "internal + external" Urban Integration
linkage mode demonstrating the responsibility of a state-owned enterprise and the spirit The company is committed to integrating with the city by providing heating services advancing solid
of its youth. We organized youth volunteers to go to "Free Love Porridge Houses" in the city waste resource comprehensive utilization projects and promoting harmonious progress with the
to provide warm breakfast for sanitation workers and solitary elderly people and regulated community. Starting from the product manufacturing lifecycle the company continues to promote
shared bikes and cleared litter around key business districts and residential areas in the efficient recycling of resources creating a new development model of internal enterprise
Qian'an City. Combined with the "Lei Feng Month" activities the company organized youth circulation regional industrial cooperation and integration between the city and the enterprise. For
employees to clean sanitary dead corners in the factory pick up trash and standardize example the company collaborates with Jinyu Group Beijing University of Science and Technology
vehicle parking contributing to urban civilization construction and factory environment and the government of Qian'an City to promote the solid waste resource utilization project helping
beautification through these volunteer services. Qian'an and Tangshan achieve zero solid waste emissions contributing to the creation of "waste-
free cities" and "clean cities".Contributing to the Coordinated Growth of the Beijing-Tianjin-Hebei Region
We have actively integrated into the Beijing-Tianjin-Hebei coordinated development strategy playing
a leading and exemplary role. We have promoted synergistic industrial chains with R&D in Beijing
and manufacturing in Hebei. As the first large enterprise to settle in Caofeidian Hebei Jingtang Co.has driven the transfer of Beijing's productive service industry to Caofeidian forming an industrial
chain with the upstream and downstream of the steel industry greatly promoting the construction of
Caofeidian port cluster including iron ore port crude oil port coal port etc. and becoming a pioneer
in the coordinated development of the Beijing-Tianjin-Hebei region. Jingtang Co. led the formation
of the "Hebei High-Quality Automotive Steel Innovation Consortium" in partnership with six other
organizations including Great Wall Motors Yanshan University University of Science and Technology
Beijing and Lingyun Industrial Co. Ltd. The consortium promotes the sharing and optimal allocation
of regional scientific and technological innovation resources contributing Shougang's wisdom to the
coordinated growth of the Beijing-Tianjin-Hebei region.
90 2025 Shougang Co. Sustainability ReportGovernance Solidifying the Governance Foundation
Safeguarding Sustainable Development
Material Issues for Response
Anti-Commercial Bribery and Anti-Corruption
Fair Competition Stakeholder Engagement Data
Security and Customer Privacy
Key SDGs Addressed
Shougang Co. continuously deepens the guidance of Party building
promoting the organic integration of Party leadership with corporate
governance. We constantly improve a modern corporate governance
system featuring statutory rights and responsibilities transparent
authority coordinated operations and effective balances. We steadily
advance the optimization of governance mechanisms strengthening
the independence and diversity of the Board of Directors to enhance
scientific decision-making and transparency. We perfect the coordination
mechanism for compliance management risk prevention and ESG
fortifying the line of defense for integrity and deepening clean co-
construction within the supply chain to create a fair and honest
business environment. We attach great importance to investor relations
management and improve the quality of information disclosure
supporting the high-quality sustainable development of the enterprise
with standardized robust and efficient governance practices.
2025 Highlights and Achievements
* "Golden Round Table Award" for Special Contribution to Corporate Governance at the 20th * Graded as an EDIS-AAA-level enterprise
Chinese Listed Company Board of Directors Awards
* Rated Grade A in the Shenzhen Stock Exchange 2024-2025 Listed Company Information
Disclosure AssessmentCorporate Governance Shareholders' General Meeting
The Shareholders' General Meeting is the company's highest authority. The company strictly
acts in accordance with the Articles of Association the Rules of Procedure for the Shareholders'
General Meeting and relevant regulations to convene and hold meetings effectively protecting
Shougang Co. strictly complies with the requirements of relevant laws regulations and normative the legitimate rights and interests of the company and all shareholders. The company treats
documents including the Company Law the Securities Law the Code of Corporate Governance all shareholders equally to ensure they can fully exercise their rights. In 2025 the company
for Listed Companies and the Listing Rules. The company continuously improves its governance organized 4 Shareholders' General Meetings and deliberated and approved 20 proposals.structure standardizes the operating mechanisms of the Shareholders' General Meeting and
the Board of Directors and constructs a modern corporate governance system characterized by Board of Directors
statutory powers and responsibilities transparency coordinated operation and effective checks
and balances. Emphasis is placed on the diversity and independence of the Board of Directors The Board of Directors is the company's decision-making body under which four specialized
optimizing its member structure to ensure scientific and impartial decision-making. committees are established: the Strategy Risk ESG and Compliance Management Committee
the Audit Committee the Remuneration and Assessment Committee and the Nomination
Committee. The company focuses on enhancing the independence of the Board's decision-making
and governance. The nomination and election of independent directors comply with relevant laws
Governance Structure regulations and the Articles of Association and there is no relationship with the company that
affects their independence. Independent directors earnestly fulfill their duties and obligations
The company has established a sound corporate governance structure where the Shareholders' leverage their professional advantages strictly maintain independence and actively participate in
General Meeting the Board of Directors and the management level perform their respective corporate governance and major decision-making. They express independent opinions on matters
duties with high synergy achieving a positive coordination of guiding the direction decision- such as periodic reports profit distribution director replacement and related party transactions
making conducting supervision and promoting implementation. to ensure scientific and effective decision-making. Among them both the Audit Committee and the
Remuneration and Assessment Committee are composed of independent directors.Shareholders' Strategy Risk ESG and Compliance
General Meeting Management Committee
In 2025 the company convened 12 meetings of the Board of Directors at which 56
proposals were reviewed and approved; and 13 meetings of the specialized
Audit Committee
committees of the Board of Directors were held including:
Board of Directors
Remuneration and Assessment Committee
1723
Management Team Nomination Committee Meeting of the Meetings Meetings of the Meetings
Strategy Risk ESG of the Audit Remuneration of the
and Compliance Committee and Assessment Nomination
Management Committee Committee Committee
92 2025 Shougang Co. Sustainability ReportWith an attitude of high responsibility toward shareholders the specialized committees of the Board Board Effectiveness
leverage their respective professional advantages in strategic development major investment financial
In the ESG system the assessment of Board effectiveness is particularly critical. The Board
audit executive remuneration and performance appraisal providing strong support for the Board's scientific
provides effective oversight of relevant risks ensuring compliant operations and enhancing the
decision-making.transparency of ESG information disclosure to foster robust communication between the company
and stakeholders.Senior Management
In accordance with the Company Law the Securities Law and relevant provisions of the Articles of
The company's senior management consists of the General Manager Deputy General Managers Association the company formulated the Working Regulations for Specialized Meeting of Independent
Chief Accountant Secretary to the Board etc. forming the company's core management team. Directors. Simultaneously it strictly standardizes the selection and appointment process of
Members possess extensive professional technology and corporate management experience independent directors to ensure they possess sufficient professional knowledge and experience to
providing solid management and professional support for the company's high-quality and fulfill their duties independently without influence from major shareholders actual controllers or
sustainable development. other interested parties. According to the Management Measures for Independent Directors of Listed
Companies of the CSRC and other relevant regulations independent directors conduct annual self-
inspections of their independence. The company evaluates the independence of active independent
directors and issues the Special Report on the Independence of Independent Directors which is
submitted to the Board for deliberation and disclosed alongside the annual report. Through on-
Board Diversity site research and other means independent directors have provided effective suggestions on
The company attaches great importance to the shareholder returns market value management and cost reduction and efficiency enhancement.diversity and independence of the Board of Directors As of the end of the reporting period there were 3 independent directors on the Board.and regards it as one of the key measures to enhance
governance. Adhering to the concepts of openness and
inclusiveness the company actively promotes the policy
of Board diversity. We comprehensively consider multiple
factors including gender age educational background
professional experience professional skills and
knowledge structure to continuously improve the Board's
composition and build a diverse independent and
efficient Board. Board members have diverse professional 4
backgrounds covering senior management experience
In 2025 the company was awarded the "Golden Round
in steel enterprises as well as expertise in finance law Female Directors
risk control investment and sustainability. This enables Table Award" for Special Contribution to Corporate
them to provide comprehensive professional judgment Governance at the 20th Chinese Listed Company
for decision-making ensuring the Board effectively Board of Directors Awards.responds to the rapidly changing business environment
and supports the company's long-term sustainable
development. As of the end of the reporting period
the Board consisted of 9 members including 4 female
directors.
2025 Shougang Co. Sustainability Report 93Professional Experience Background
No. Position Name Gender Educational Background Committee Position
Enterprise Technical
Management Management Finance Law Investment Risk Control
Sustainable
Development
1 Chairman of the Board Zhu Doctoral Chairman of the Strategy Risk ESG and Compliance Management Legal Representative Guosen Male Degree Committee of the Board of Directors √ √ √ √ √
2 Director Wang Male Doctoral Member of the Strategy Risk ESG and Compliance Management Lifeng Degree Committee of the Board of Directors √ √ √ √ √
3 Director Li Ming Male Doctoral Degree Member of the Nomination Committee of the Board of Directors √ √ √ √ √
4 Employee Chen Master's Member of the Strategy Risk ESG and Compliance Management Representative Director Xiaowei Female Degree Committee of the Board of Directors √ √ √ √ √ √
Chairman of the Audit Committee of the Board of Directors Member
5 Independent Director Yu Xingxi Male Master's of the Remuneration and Assessment Committee of the Board of Degree Directors Member of the Nomination Committee of the Board of √ √ √ √
Directors
Master's Chairman of the Remuneration and Assessment Committee of the 6 Independent Director Peng Feng Male Degree Board of Directors Member of the Audit Committee of the Board of √ √ √ √ √Directors
Chairman of the Nomination Committee of the Board of Directors
7 Independent Director Wang Cuimin Female
Master's Member of the Audit Committee of the Board of Directors Member
Degree of the Remuneration and Assessment Committee of the Board of √ √ √ √ √
Directors
8 Director Liu Jun Female Master's Member of the Strategy Risk ESG and Compliance Management Degree Committee of the Board of Directors √ √ √ √ √
9 Director Jin Xi Female Master's Member of the Strategy Risk ESG and Compliance Management Degree Committee of the Board of Directors √ √ √ √ √
94 2025 Shougang Co. Sustainability ReportFactors considered in strengthening the independence of the Board of Directors Information Disclosure
Independent directors should have extensive professional knowledge Shougang Co. strictly implements the relevant regulatory requirements of the China Securities
Professional and industry experience to provide valuable advice and insights to the Regulatory Commission and the Shenzhen Stock Exchange (SZSE). The company has established
Knowledge and company. and improved a series of systems including the Information Disclosure Management System the
Experience Insider Information Registration and Management System the Subsidiary Management System and
the Information Classification and Management Measures constructing a sound internal information
Independent directors should remain independent from the company's transmission and confidentiality management mechanism to ensure the timeliness and fairness
major shareholders actual controllers or other stakeholders and must of information disclosure as well as the authenticity accuracy and completeness of the disclosed
content. The company resolutely eliminates false records misleading statements or major
not have any conflict of interest with the company ensuring objective
Independence omissions continuously improves the quality of information disclosure broadens information
review and decision-making. acquisition channels for investors efficiently communicates business management status and
development information and protects the legitimate rights and interests of the company and all
When selecting independent directors the company takes multiple shareholders.factors into consideration including professional background industry In 2025 in line with the requirements of the Regulatory Guidelines No. 10 for Listed Companies—
experience gender and age to ensure that the Board's decision- Market Value Management of the China Securities Regulatory Commission the company prepared
Diversity
making reflects diverse interests comprehensively. the Valuation Enhancement Plan and the Shareholder Return Plan for the Next Three Years (2026-2028).These focused on improving profitability emphasizing on investor returns strengthening investor
The company has formulated the Rules of Procedure for the Board of Directors which clearly communication enhancing information disclosure quality implementing ESG management
requires that more than half of the directors must be present for a Board meeting to be held. In concepts exploring diversified incentive forms and encouraging major shareholders to increase
2025 the average attendance rate of the company's directors at Board meetings was 100%. their holdings. The company closely tracked regulatory trends and adhered to the latest policy
requirements and operational realities to disclose information to investors and the public in
Reform of the Supervisory Committee a comprehensive transparent and timely manner. A total of 30 information disclosures were
In 2025 in accordance with the Company Law and other relevant regulations and in light of completed with 299 documents submitted to the SZSE including 153 publicly disclosed documents
the company's actual status the company amended the Articles of Association to abolish the and 146 filed documents. Specific measures include:
Supervisory Committee and decided not to appoint supervisors. The Working Regulations of the Audit
Committee of the Board of Directors were revised with the Audit Committee exercising the functions * Strictly following regulatory rules and focusing on investor hot spots the company prepared and
and powers of the Supervisory Committee as prescribed by the Company Law and regulatory disclosed four periodic reports (including the English and Chinese versions of the annual report) truly
rules. The reform of the Supervisory Committee/supervisors of subsidiaries was completed and and accurately reflecting the company's operational status performance highlights key products and
the amendment of their respective articles of association was finished simultaneously further future development plans during the reporting period.strengthening the control over subsidiaries.* Closely combining the company's operational reality the company timely and accurately disclosed
Institutional System major matters and their progress ensuring that investors could obtain important company information as soon as possible.In accordance with the requirements of the Company Law the Securities Law the Code of Corporate
Governance for Listed Companies the Listing Rules and the Self-Regulatory Guidelines No. 1 for * Centering on the company's market value management work arrangements the company proactively
disclosed the bilingual version of the annual Sustainability Report cooperation announcements with
Companies Listed on Shenzhen Stock Exchange—Standard Operations of Main Board Listed Companies key customers and shareholder return plans further improving the initiative and transparency of the
the company has established a sound internal control system continuously deepening standardized company's information disclosure.operations and improving the level and quality of corporate governance.The company closely monitors the standardization and legalization process of the securities market
and improves its corporate governance system in a timely manner. In 2025 the company formulated Information Disclosure Accuracy Rate Shenzhen Stock Exchange 2024-
the Management System for the Resignation of Directors and Senior Management and revised 25
systems including the Articles of Association the Working Regulations of the Strategy Risk ESG and 2025 Listed Company Information
Compliance Management Committee of the Board of Directors and the Detailed Working Rules for the
General Manager continuously consolidating the institutional foundation of corporate governance. 100% Disclosure Assessment A
2025 Shougang Co. Sustainability Report 95Investor Relations Management
Organized 10 Investor Responded to 199 Investor
In 2025 the company actively and deeply promoted investor relations management in accordance Communication Sessions Inquiries on the SZSE Interactive Easy
with the Investor Relations Management System proactively responding to investor concerns regarding
corporate governance market value management dividend policies and future development plans. Investor Communication Channels
In terms of promoting investor exchanges the company took multiple measures to deepen two-way
communication. We organized on-site research and telephone interviews with securities firms and "Interactive Easy" Platform Performance Briefings
investment institutions timely compiled exchange content and released investor activity records. Investor Relations Platform on the
Shareholders' General Meeting
Through multiple channels we released annual reports sustainability reports and materials Company Official Website Online Offline
such as "one picture to understand" to comprehensively display the company's business status Investor Consultation Hotline Communication Communication Roadshows and Reverse Roadshows
Channels
and sustainability practices. The company also ensured smooth communication channels with Channels
Investor Relations Email Brokerage Strategy Meetings
small and medium investors actively responding to investor questions on the SZSE Interactive
Easy and recording investor demands through the investor consultation hotline to be reported to Investor Exchange Meetings On-site Investor Visits
management for research and organized responses.Regarding performance briefings the company organized high-quality meetings using video live
streaming and online remote interaction to introduce business conditions and answer investor Performance Briefings
questions. Activity records were released on the designated platform of the SZSE and disseminated
through media channels further enhancing the breadth depth and effectiveness of investor In 2025 the company continued to deepen investor
communication. relations management centering on enhancing
information transparency and strengthening value
Research and Communication by Institutional Investors delivery. We orderly held multiple performance
briefings to build a regularized and high-quality
investor communication mechanism. On April
In May 2025 Shougang Co. organized 14 fund and securities firm analysts from 18 August 25 and October 31 respectively the
Fullgoal Fund ICBC Credit Suisse Asset Management and others to conduct an on-site company held performance briefings for the 2024
research at Qiangang Co. The company's senior management team engaged in detailed annual and 2025 first-quarter results 2025 semi-
communication on issues of concern to investors such as performance core product annual results and 2025 third-quarter results comprehensively covering key operational
competitiveness future capital expenditures and the impact of carbon emission policies. nodes.This research activity built an efficient communication bridge between the company and Specifically the 2024 annual and 2025 first-quarter performance briefing adopted the
professional institutions in the capital market. It not only comprehensively communicated "Panorama Network Live Streaming + Remote Interaction" mode breaking the constraints
the company's business development achievements and strategic plans but also further of time and space to broaden investor participation channels. The Chairman directors
enhanced investor recognition and confidence in the company's long-term development General Manager Chief Accountant and Secretary to the Board attended directly
addressing market concerns. They provided professional interpretations and precise
potential by directly addressing market concerns and accurately interpreting core values.responses to topics of widespread concern such as business conditions development
strategies financial performance and business layout answering 6 inquiries on-site and
23 questions online.
The company's performance briefings not only won wide recognition from investors
through comprehensive and transparent information disclosure but also strengthened
market perception of the company's value through efficient interaction.
96 2025 Shougang Co. Sustainability ReportShareholder Value Creation Business Code of Conduct
Shougang Co. has thoroughly implemented the national decision-making and arrangements Anti-discrimination ?
on improving the quality of listed companies and strengthening market value management. We
Prohibition of Harassment ? ? Integrity in Operation
implement the State Council's Opinions on Further Improving the Quality of Listed Companies and
? A nti-unfair Competition Anti-monopoly
respond to the relevant requirements of the Regulatory Guidelines No. 10 for Listed Companies— Respecting Basic Labor Rights ? and Anti-money Laundering
Market Value Management. The company is committed to consolidating its value foundation Prohibition of Child Labor and Forced Labor ? ? Anti-corruption and Anti-fraud
through substantive improvements in company quality and operational performance. We
systematically promote the "Quality and Returns Enhancement" Initiative and actively practice Respecting Women's Rights ?
the Valuation Enhancement Plan focusing on value creation and firmly adhering to strategies for
green intelligent high-end and lean manufacturing. The company continues to optimize product
and customer structures to promote high-quality development. Adhering to the orientation of
prioritizing shareholder return the Articles of Association clearly define profit distribution principles The company upholds a professional honest and upright attitude in business cooperation strictly
deliberation procedures and distribution ratios. The company carries out profit distribution in constrains business with the highest business ethics standards and guarantees integrity in
accordance with laws and regulations and formulates and executes stable and sustainable cash operation. We respect the principles of market competition actively promote and maintain a fair
dividend policies to share development achievements with investors. and free market competition environment resolutely oppose any unfair competition monopoly
and money laundering behaviors and carry out comprehensive management in anti-monopoly and
In 2025 the company established a continuous stable and scientific return plan and mechanism anti-money laundering. The company attaches great importance to and continues to create a clean
for investors preparing and releasing the Shareholder Return Plan for the Next Three Years (2026- and upright corporate culture maintains a zero-tolerance attitude toward non-compliant behaviors
2028). It clearly stipulates that in principle the profit distributed by the company shall not be less such as corruption and fraud and promotes the integration of integrity and compliance concepts
than 30% of the net profit attributable to shareholders of the listed company realized in that year. into all aspects of operation and development.In 2025 the company proposed a cash dividend of RMB 0.40 (tax-inclusive) per 10 shares to all
shareholders with a total cash dividend of RMB 310 million. As of the end of the reporting period Anti-Corruption and Anti-Bribery
the aggregate amount of RMB 117 million paid for share repurchases and cash dividends reached
RMB 427 million accounting for 268.57% of the distributable profit realized by the parent company The company firmly establishes the integrity concept of "combining work with cleanliness and
in 2025 43.65% of the distributable profit in the consolidated financial statements and 42.87% of diligent administration with clean governance" continuously strengthens integrity construction
the net profit attributable to the parent company in the consolidated financial statements. and builds and improves an integrity risk prevention system of "manual defense technical defense
mechanism + culture" to fortify the line of defense for honest operation.Integrity Ecology Based on whole-process integrity control the company formulates and strictly implements rules
and regulations for anti-corruption and advocating integrity such as the Regulations on Anti-
Shougang Co. always regards compliance and integrity as its business criteria strictly abiding Corruption and Integrity Education and Training the Cross-Position Management System for Personnel
by the requirements of laws regulations rules and normative documents such as the Criminal with Business Disposal Authority the Measures for Testing the Knowledge of Integrity Law and
Law the Anti-Unfair Competition Law and the Interim Provisions on Prohibiting Commercial Bribery. Regulations Before Leaders Take Office the Disciplinary Accountability Management System for Party
The company continuously improves its system and has formulated the Business Code of Conduct Members and the Employee Misconduct Handling Regulations. This forms a full-chain institutional
the Compliance Management Measures for Procurement Business Partners of Beijing Shougang Co. guarantee system covering integrity education position control appointment assessment and
Ltd. the Integrity Co-Development Notification Letter and the Business Partner Code of Conduct accountability for discipline violations ensuring that integrity requirements run through all aspects
Commitment Letter requiring all employees suppliers and contractors to adhere to the corporate of daily operation and management.business ethics policies and standards to ensure that all business activities are conducted in a In 2025 the company comprehensively summarized the effectiveness of its integrated promotion of
standardized honest and orderly manner throughout the process. The company has constructed the "Three No-Corruption Principles6" work. The resulting innovation and practice report won the
a business ethics management structure with the Board of Directors being responsible the second prize for National Enterprise Party Building Innovation and Practice Technical Achievements
specialized committees of the Board supervising and the discipline inspection audit risk control in 2025 from the China Corporate Culture Institute and the first prize for papers at the 21st Annual
and compliance departments executing specifically achieving closed-loop management of Meeting of Discipline Inspection and Supervision for Iron and Steel Enterprises.execution process control and supervision. During the reporting period no business ethics-related
issues occurred in the company. 6 Three No-Corruption Principles: No daring to be corrupt no desire to be corrupt incapable of corruption.
2025 Shougang Co. Sustainability Report 97
Business Ethics
Respecting and Safeguarding
Human RightsAnti-Commercial Bribery Integrity Risk Prevention and Control
The company builds a supply chain integrity The company continues to strengthen risk judgment systematically promotes the construction of integrity risk
ecosystem characterized by institutional constraints prevention and control mechanisms and improves the integrity risk prevention and control system. We promote
two-way supervision and co-construction and the Implementation Plan for Cross-Department and Cross-Position Rotation of Personnel with Business Disposal
sharing promoting collaborative compliance and Authority to further fortify the integrity risk prevention and control management system. In 2025 the company
honest cooperation among all participants in the conducted an in-depth investigation of its business processes identified integrity risk points and formulated
supply chain. The company has systematically detailed prevention and control measures to ensure that integrity risks are effectively controlled. During the
established a full-cycle management mechanism reporting period the proportion of operation sites that have undergone corruption risk assessments was 100%.covering supplier access process supervision and supplier exit and formulated a series of systems such as
the Procurement Suppliers Management Measures and the Compliance Management Measures for Procurement The company strictly complies with laws and regulations such as the Audit Law and has formulated relevant
Business Partners of Beijing Shougang Co. Ltd. to standardize business behavior and strengthen systems such as the Internal Audit Management System and the Construction Project Audit Management Measures.supply chain integrity governance. Through audit discipline inspection and Internal Control procedures the company identifies high-risk business
In the cooperation and access stage the company strictly conducts due diligence and compliance activities to ensure operational compliance. Internal business ethics-related audits covering all business and
screening on applicants to prevent integrity risks from the source. In the cooperation execution operation departments are conducted and the audit frequency is increased according to specific business needs.stage contracts signed by the company and its subsidiaries with suppliers and contractors contain During the reporting period the internal audit coverage rate was 100%. In addition the company actively accepted
integrity clauses clarifying compliance obligations and accountability mechanisms to create a third-party system audits and obtained the ISO 37301:2021 Compliance Management System Certificate and the
transparent supply chain. In addition the company formulated the Promotion Plan for Building a ISO/IEC 27001:2022 Information Security Management System Certificate.Transparent Procurement and Integrity Evaluation System to build an integrity evaluation system for
transparent procurement through a three-dimensional evaluation mechanism involving suppliers
procurement personnel and users achieving management goals of fairness impartiality
openness transparency integrity and efficiency. Integrity Culture Development
Innovatively Building an "Online + Offline + Enterprise-Family" Integrity Co-construction System
The company deepens integrity culture education builds a comprehensive and multi-level integrity education
Suppliers sign the Integrity Co-construction Agreement. system and creates an atmosphere of upholding integrity. In 2025 the company formulated the 2025 Anti-Online
corruption and Integrity Education and Training Plan systematically planning 20 specific training sessions to
Regularly organize internal units and stakeholders to carry out "integrity co-construction" exchange
symposiums and supplier integrity business conferences to jointly study relevant laws regulations and policies achieve systematic and normalized advancement of integrity education. Through activities such as "using cases
Offline as well as the Integrity Co-Development Notification Letter the Compliance Management Measures for Procurement to explain discipline" warning education "Clean Breeze" preaching and law popularization training for personnel
Business Partners of Beijing Shougang Co. Ltd. the Business Partner Code of Conduct Commitment Letter and in key positions the company builds an integrated integrity line of defense combining education warning and
other institutional documents and provide reporting and feedback channels.prevention.Family- Hold "Family Integrity Support" symposiums in three factory locations to form good family traditions and family
Enterprise education.Carrying out Joint Supervision to Promote "Substantive
Compliance" in Management
Aiming at business ethics risk points such as corruption and bribery the company
organizes whole-process "penetrating" joint supervision and inspections on the execution
of workflows such as supplier access procurement pricing and contract signing. This
breaks through information asymmetry and complex structural shielding effectively
implements compliance control requirements and fortifies the integrity line of defense in
the procurement stage.Warning Education Learning Special Warning Education Training Class
98 2025 Shougang Co. Sustainability ReportDuring the reporting period centering on the theme of "Strengthening Style with Eight Rules Fair Competition
Moistening Original Heart with Integrity Culture" the company used the three major projects of
"Theoretical Soul-casting Brand Empowerment and Practical Gathering" as a starting point. By Adhering to the principles of free and fair competition the company strictly complies with relevant
combining unified activities with grassroots characteristic activities we innovatively set up "6+N" laws and regulations such as the Anti-Unfair Competition Law and the Civil Code. We establish and
activity carriers and held the 6th Integrity Culture Month. The activities integrated "online + offline" improve an honest mechanism for fair competition resolutely oppose any form of monopoly and
"theory + practice" and "education + interaction" in diverse forms making integrity education more unfair interest extraction and make clear statements in the Business Code of Conduct.effective and infectious. Each unit created characteristic integrity brands based on its business
characteristics promoting integrity concepts to the heart and further fortifying the ideological The company has formulated systems such as the Confidentiality Management System and
defense line for employees' integrity. the Technology Confidentiality Management System clarifying commercial secret protection
requirements effectively maintaining the security of commercial secrets of the company and
related parties and preventing commercial secret infringement. We have also formulated systems
Jingtang Co. Activates Family Integrity Support Forces such as the External Communications Work System and the Portal Website Management System. Adhering to the principle of authenticity and accuracy the company has established a review
mechanism for publicity content strictly prohibited false publicity and accepted public supervision
Aiming at the difficulty of supervising personnel in key positions outsiding working to effectively maintain a fair competition market environment and the legitimate rights and
hours Jingtang Co. innovated a three-dimensional family integrity support mode interests of consumers.of "listening speaking reading and writing" to extend the integrity defense line to The company has established an anti-unfair competition risk assessment and response mechanism
families. covering the entire process of risk identification assessment and judgment hierarchical response
and supervision and optimization. We regularly review business processes and investigate risk
Learning Good Family Traditions points embedding review nodes in key links. At the same time regular reviews are conducted to
Launching the column "Famous Family Tradition" and distributing books such as prevent unfair competition risks. During the reporting period the company was not involved in any
Clean Breeze Handed Down in the Family to guide employees to value virtue and litigation cases related to monopoly or unfair competition.manage their families with integrity through self-study and reading clubs. In 2025 the company organized training for employees and suppliers on relevant laws and
Involving Family Members in Advocating Integrity regulations such as the Criminal Law the Anti-Unfair Competition Law and the Anti-Money
Inviting family members to record holiday integrity advocacy videos write family Laundering Law to strictly prohibit behaviors such as implementing monopolies and infringing on
integrity support essays and create family tradition works to enhance the commercial secrets enhancing awareness of anti-unfair competition.sense of experience in integrity culture construction and make family members
advocates for integrity culture. Reporting Channels
Promoting Family Integrity Support The company has established and improved a reporting mechanism and continuously broadened
Holding family integrity support symposiums through forms such as attending reporting channels implementing a "four-in-one" reporting mode of letter visit internet and
warning education classes together writing integrity support letters together and telephone encouraging all stakeholders to report various business ethics violations in real-name
making integrity commitments together using "family micro-cells" to build the or anonymous ways. To ensure smooth reporting channels the effectiveness of the channels is
enterprise's "great defense line" for integrity. regularly evaluated and supervision paths are dynamically optimized. Confidentiality management
for reports is strictly implemented through specialized personnel for acceptance specialized
venues for filing and exclusive contact channels to comprehensively safeguard the information
security and rights of whistleblowers. After receiving a report the company collects and organizes
relevant information and judges its authenticity immediately. Reporting matters involving
professional fields are handed over to the corresponding business management departments
for special investigation verification and feedback ensuring that the demands of stakeholders
are responded to in a timely manner. If a reporting matter is suspected of violating discipline or
law it is strictly handed over to relevant departments or institutions such as discipline inspection
and supervision in accordance with regulations to ensure the compliance and seriousness of the
investigation and disposal.Reporting
Methods
Reporting Hotline：0315-7708606 Reporting E-mai：lzxx@sgqg.com
2025 Shougang Co. Sustainability Report 99Risk Management Risk Management System
The company has formulated general and specialized risk management systems such as the Risk
Shougang Co. has established its comprehensive risk management system based on the Guidelines
for Comprehensive Risk Management of Central Enterprises with reference to the ISO 31000 risk Management System the Compliance Risk Identification Assessment and Control Measures the
management standard. The company comprehensively sorts out business processes accurately Major Decision-Making Social Stability Risk Assessment Management System the Information Risk
identifies potential risks and effectively integrates risk assessment results into various links such as Assessment Management System the Information Security Risk Assessment Measures the Safety
key risk control business process evaluation and system formulation. At the same time the company Risk Classification Control and Hazard Investigation Management System and the Safety Production
strengthens risk monitoring and management of key control activities continuously improving risk Risk Monitoring and Early Warning System Management Measures. We have optimized and upgraded
governance efficiency and risk mitigation capabilities. the assessment standards for compliance risks and business risks building a standardized risk
control system covering multiple dimensions. ESG-related risks are incorporated into the risk
Risk Management Framework management system to ensure that while pursuing economic development various factors of
sustainable development are fully considered.The company has constructed a sound risk management framework. The Strategy Risk ESG
Risks are divided into five categories according to the area of occurrence: strategic risk financial
and Compliance Management Committee is the company's highest management body for risk
management responsible for researching risk and compliance management systems and risk market risk operational risk and legal risk covering ESG-related risks. The company's
implementing all-round guidance supervision and evaluation of compliance management work. Risk Control Manual comprises 29 primary processes such as safety management procurement
It urges the company to establish and improve the risk and compliance management system management legal management risk control management environmental protection
and ensure its effective implementation takes timely corrective measures for violations and management technical quality management technology management energy management tax
conducts professional assessments and reports on major risk matters deliberated by the Board. management and stakeholder management as well as 107 secondary processes 382 tertiary
The Investment and Risk Assessment Group a sub-committee under the Strategy Risk ESG and processes and 480 key control points.Compliance Management Committee is responsible for the construction of the company's risk
management system the control of key risks the management of risks in professional fields and the
formulation and execution of risk management work plans. Strategic Risk
General Risk
Risk Financial Risk
According to the company's Working Regulations of the Audit Committee of the Board of Directors the Management Systems Management Risk Types Market Risk
Audit Committee undertakes the responsibility of supervising and auditing risk management during Specialized Risk Systems Operational Risk
the company's operation. The Board Secretary Office is responsible for coordinating the company's Management Systems Legal Risk
audit finance and other departments to organize the implementation of the preliminary preparation
work for the Audit Committee's decisions. The Audit Department is responsible for supervising and
evaluating the establishment and operation of the risk control system in various departments. In 29 Primary Processes 382 Tertiary Processes 480 Key Control Points
addition the Audit Committee is composed of 3 independent directors with the chairman served by
an accounting professional to ensure the professionalism and independence of the Audit Committee. In 2025 the company revised and strictly implemented the Risk Management System and the Guiding
Norms for the Basic Risk Management Process to conduct risk assessment work. The company
Three Lines of Defense for Risk Management systematically and standardly promotes risk management work according to the basic process
of risk information collection and identification risk assessment risk management strategy
First Line of Defense Second Line of Defense Third Line of Defense formulation and response risk management supervision and improvement and risk management
reporting. Centering on business objectives the company analyzes key elements of various links
Business units and business entities Risk management department Guided by the Audit Committee of the in the industry identifies and assesses risks from the perspective of risk impact degree and
Responsible for systematic analysis Responsible for coordinating and Board of Directors and executed by occurrence possibility and determines 10 major risk areas that significantly affect the company's
confirmation management and organizing corporate risk management the Audit Department operation such as product structure adjustment cost control and environmental protection policy
monitoring of the risks involved. and providing early warning of risks Responsible for risk management
on major issues. oversight identifying new risks adjustment incorporating them into special risk control management. By formulating targeted
residual risks and deficiencies in risk prevention and control measures and dynamically tracking and supervising them the company
management and ensuring that the first
and second lines of defense undergo strengthens the role of the second line of defense of risk management functional departments
continuous review and improvement. effectively reduces risk impact and ensures the smooth realization of business objectives.
100 2025 Shougang Co. Sustainability ReportRisk Management Process Part of Risk Response Measures of Shougang Co. in 2025
Risk Information Collection and Identification Risk Risk Analysis Control Measures1
* Establish multi-channel internal and In intelligent application * Strengthen control over leakage prevention
external risk information collection scenarios such as residual tampering prevention and damage
large model training data and prevention of training data;
mechanisms to comprehensively collect
robot dialogue leaking internal * Establish AI data security compliance
risk information in various fields; 2 Risk Assessment Data Leakage knowledge if data is not baselines and complaint and reporting
* Conduct risk identification based on * Assess risk levels based on the impact Risk encrypted and protected it may mechanisms;
actual production practices identify severity and likelihood of occurrence; lead to the leakage of important * Improve data security management
internal and external potential pure risks company information and cause systems supplement AI application
and opportunity risks and classify them * Classify and categorize all types of varying degrees of information management rules and convert compliance
according to the areas where they occur. risks clarify core risks and key control security incidents. requirements into technical control points.matters and form assessment results
* Improve safety management systems based
combining quantitative and qualitative If safety systems are imperfect
on laws and regulations to ensure basic
methods. responsibilities are not in place
Risk Response Strategy Formulation 3 management compliance;education and training are formalized * Refine the safety production responsibility
hidden danger investigation and
* Formulate risk prevention or control list and supervise its implementation;
rectification are not timely or
measures based on the nature of the risk Risk Management Solution Proposal and * Implement safety education and training to Production emergency plans are unsound or
and risk tolerance; ensure a 100% plan fulfillment rate;
4 Implementation Safety Accident insufficiently practiced there are * Regularly carry out risk identification and * Continuously assess the effectiveness of Risk potential safety hazards for people
* Put forward major risk solutions based hidden danger investigation to ensure a response strategies. objects and the environment 100% rectification rate of hidden dangers
on risk response strategies; which may lead to production safety
within a time limit;
accidents and face negative impacts
* Strictly promote the landing of solutions * Improve emergency rescue plans and
such as fines and regulatory
and strengthen process coordination. conduct regular drills to ensure a 100% drill
Risk Management Supervision and Improvement 5 circulars. plan fulfillment rate.* Continuously assess changes in risks * Formulate annual/monthly procurement
and check the progress and actual
6 Risk Management Report Shrinking market channels plans and strengthen process control; effectiveness of risk response strategies insufficient supplier capacity multiple departments collaborate to adjust Raw Material
and solutions. * R i s k m a n a g e m e n t f u n c t i o n a l and blocked logistics may lead procurement strategies such as variety Supply Risk
departments compile and issue risk to raw material shortages or substitution transport optimization and
management reports and report to supply interruptions. new channel expansion to ensure stable
the management level. supply.Incomplete identification of * Obtain and update environmental
Risk of environmental protection protection laws regulations and standards
Incomplete and carbon management- in accordance with the Procedure for
Identification of related laws regulations and Identification Evaluation and Control of
Environmental industry norms may lead to Environmental Protection Laws Regulations
Protection the company's environmental and Other Requirements and compile a list
and Low- protection system documents to ensure comprehensive identification;
carbon Laws not meeting regulatory * Track policy trends formulate carbon
Regulations requirements resulting in management systems and coordinate
and Systems compliance penalties or loss of carbon asset and carbon emission trading
customers. management.
2025 Shougang Co. Sustainability Report 101Risk Review and Supervision Number of Organized and
Implemented Audit Projects
Compliance Management System Manual
The Audi t Department o f the company undertakes the 3
responsibilities of risk review and supervision responsible for Compliance Management RegulationsFundamental
comprehensively implementing the audit plan conducting in-depth 73 Items Management Compliance Management Handbook
audits on economic responsibilities engineering projects etc. and Systems
effectively preventing and responding to various risks in enterprise Internal Audit Coverage Rate
operations. At the same time the company carries out strict
compliance reviews focuses on rectification and implementation
and ensures that rectification responsibilities are in place through %
"rectification look-back" special inspections to improve compliance 100 4 Safety Production Compliance Audit Management Measures
levels. We actively innovate the application of compliance Specialized Environmental Protection Compliance Management Guidelines
management and audit results integrate the concepts of risk audit and supervision break through Compliance
Compliance Management Measures for Procurement Business Partners
the barriers of audit result application integrate audit thinking into information models and Systems in Key
advance audit results into business early warnings to promote audit management innovation. Asset Compliance Management GuidelinesAreas
The company conducts audit case preaching in combination with audit projects to enhance the
professional quality and practical ability of auditors.In 2025 the company actively promoted audit management innovation and audit result application
and the relevant research findings were awarded "Outstanding Paper" at the 2025 Internal Audit Compliance Objectives and Policies Management Measures
Theory Symposium organized by the Beijing Institute of Internal Audit. 6 Compliance Risk Identification Assessment and Control Measures
In terms of internal control evaluation the company formulated the Implementation Plan for Internal Supporting Compliance Internal Audit Management Measures
Control Inspection and Evaluation in 2025. We conducted full-coverage inspections on the company Management Compliance Monitoring and Reporting Management Measures
and its 5 subsidiaries namely Jingtang Co. Cold-R Co. Shougang Zhixin Steel Trading and
Qian'an Shougang Metallurgical Technology Co. Ltd. effectively enhancing the soundness and Systems
Compliance Management Review Measures
execution of the internal control system. Compliance Reporting and Investigation Management Measures
Compliance Management achieve the integration of compliance management and business operation.Shougang Co. regards operating in full compliance with the law as fundamental to its survival and In 2025 the company continued to improve the compliance management system systematically
development. The company has strengthened the top-level design of its compliance management identified external laws regulations and compliance obligations and formed a risk list containing
system and established a framework centered on basic management systems supported by specialized 1270 items based on which 37 clear compliance management goals were set and achieved.management measures and guidelines for key areas. It has also developed a "Legal and Regulatory
Identification List Database" a "Compliance Obligations List Database" and a "Compliance Risk
Measures List Database" to provide basic principles for all company units employees and stakeholders Optimization of Contract Management
through a combination of positive guidance and a negative checklist. This approach drives all employees
to work in a compliant trustworthy and disciplined manner. The company has obtained the GB/T 35770-
2022/ISO 37301:2021 compliance management system certification. In 2025 Shougang Zhixin obtained In 2025 the company systematically optimized the entire process of contract management
the China Customs AEO Advanced Certification7. and strictly fortified the audit and control gateway. We clarified that business departments can
complete the credit review of contract counterparties before business startup to consolidate the
The company deeply benchmarks against compliance management system standards and pre-foundation of risk prevention and control; contract drafts must initiate the review process
continuously improves the compliance system. We earnestly fortify the "Three Lines of Defense" through the legal system and can only be signed externally after joint review management
consolidate the main responsibility for compliance management and incorporate compliance level approval and simultaneous completion of authorization filing to ensure consistent closed-
management into overall work achieving "managing business must manage compliance" to loop of powers and responsibilities. To strengthen double protection a normalized contract
prevent compliance risks. The company improves compliance mechanisms focuses on key fields random inspection mechanism was established and special inspections and management
and critical links and decomposes and implements compliance requirements to each position to optimization were carried out for key links such as drafting approval and signing to effectively
improve risk control capabilities throughout the contract life cycle.
7 AEO Advanced Certification (Authorized Economic Operator) is the highest level in the China Customs enterprise credit rating system.
102 2025 Shougang Co. Sustainability Report
L e g a l a n d R e g u l a to r y Compliance Obligations Compliance Risk Measures
Identification List Database List Database List DatabaseRisk and Compliance Culture Tax Management
The company attaches great importance to the construction of a risk and compliance culture The company strictly abides by national tax laws regulations and relevant policy requirements
and is committed to deeply integrating risk management and compliant operation concepts into and comprehensively fulfills its tax obligations in accordance with the law. The company has
enterprise operation and employees' daily behavior. Every year we organize directors to participate established a comprehensive and sound tax management system. By strengthening internal control
in director duty performance training independent director special training and follow-up management and standardizing accounting processes it ensures the authenticity and accuracy
education organized by regulatory authorities. The courses cover directors' legal responsibilities of tax data and ensures that various taxes and fees are paid in full and on time. In cross-border
internal control of listed companies and the latest regulatory policy interpretation to continuously tax-related business the company complies with international tax laws and regulations following
improve directors' risk awareness and identification ability. At the same time risk management principles such as tax jurisdiction avoidance of double taxation exchange of tax information
functional departments timely study laws and policies and carry out risk management-related international tax adjustment anti-tax avoidance and anti-tax evasion measures single taxation
training and system interpretation for all employees to ensure business compliance and control principle benefit principle and international tax neutrality to ensure tax compliance.risks within an acceptable range.The company completes the entire process of tax filing and payment in accordance with the law
and its tax credit rating has maintained Grade A for many consecutive years."Civil Code Publicity Month" Activities
During the fifth "Civil Code Publicity Month" in 2025 Shougang Co. organized a series of Our Commitment:
law popularization activities centering on the theme of "Beautiful Life · Accompanied by
* Abide by the tax and relevant laws and regulations of the country/region where we operate and
the Civil Code." Through multiple channels such as websites office areas WeChat official only carry out transactions based on real commercial substance.accounts the intranet and WeChat groups we posted posters played promotional videos
* Reject tax structures without commercial substance actively connect with tax policy orientation
and forwarded promotional content. We organized 2578 employees to participate in the focus on business areas encouraged by the state and enjoy tax preferential policies in
Civil Code knowledge competition on the "Shougang Friend" APP and carried out on-site compliance with regulations.preaching and training special training and seminars and distributed Civil Code publicity * Abide by tax law provisions earnestly fulfill the legal obligation of tax reporting and carry out
materials. This effectively enhanced the legal awareness and legal risk prevention ability of various tasks adhering to the principle of transparent cooperation with relevant government
all employees thickened the compliance culture atmosphere and fortified the legal line of departments.defense for the company's compliant operation. In the future the company will continue to * Transfer pricing is established based on the arm's length principle do not use differences in
deepen law publicity and education to help high-quality development. tax laws loopholes in the international tax system or tax havens to engage in tax evasion and
eliminate the transfer of value to low-tax jurisdictions.* Disclose tax policies based on the principle of transparency and fully disclose information such
as deferred tax assets and liabilities applicable tax items and tax rates in financial statements
and audit reports.
2025 Shougang Co. Sustainability Report 103Tax Management System Data Security
In terms of tax management organizational structure the company has established a specialized
tax management functional department responsible for the overall tax policy and tax risk control Shougang Co. attaches great importance to information security and data protection as well as
of the company and bases. It also provides tax guidance and consultation for subsidiaries to ensure customer privacy protection. We continuously improve our information security protection level to
consistency and synergy of tax management. ensure the data security of the company and the stable operation of information systems.To consolidate the foundation of tax management the company has established tax management Network and Information Security Management System
systems and standards classified by tax type supplemented by sound tax process systems
such as tax reporting and invoice management. These include the Tax Management Measures In accordance with the principle of "unified planning by senior
the Implementation Management Measures for Pre-tax Deduction of Enterprise Income Tax for management professional organization by information teams Network Security and
Asset Losses the Implementation Management Measures for Pre-tax Deduction of Research and and specialized responsibility by functional departments" the Informationization Committee
Development Expenses the Management Measures for Special Additional Deductions for Individual company has established a top-down network and information
security management structure. A Network Security and
Income Tax and the Stamp Duty Management Measures ensuring that the company's daily tax Informationization Committee has been established chaired
management work is carried out in a standardized orderly and efficient manner. The company by the General Manager and major leaders serving as
continuously strengthens employee training to enhance tax awareness and professional ability. It members. This committee serves as the decision-making Network Security and
strictly manages invoices to ensure compliant use and further reduce tax risks. and management body for network and information security
responsible for major decisions and strategic planning. Under Informationization Office
Tax Risk Management the committee a Network Security and Informationization
Office has been set up led by the executive in charge of
The company comprehensively controls tax risks through its internal tax risk management system. informationization and is responsible for overseeing
coordinating reviewing monitoring and addressing
It has constructed a systematic tax risk assessment and appraisal mechanism and carries out information security incidents. Each functional department
whole-chain management of tax risk preliminary warning in-process control and post-appraisal. is responsible for managing information security within its Functional Departments
The tax risk management mechanism covers various links such as accounting reporting respective area ensuring comprehensive and coordinated
monitoring assessment prediction and reporting of tax-related professions. Through refined and security practices across the organization.process-based management the standardization of tax work is ensured. When relevant laws and The company strictly complies with laws and regulations such as the Cybersecurity Law the
regulations change the company timely monitors areas that may apply to the company and reviews Personal Information Protection Law and the Data Security Law. We have formulated information
potential risks in advance to ensure timely adjustment of tax policies and continuous compliance. security systems applicable to all employees such as the Information Security Policy Management
System the Data Management System and the Zero Trust System Management System. These
systems cover organizational structure human resources software development infrastructure
Tax Risk Management Process operation and maintenance supplier management security risks and compliance thus
constructing a sound information security management system. These systems clearly stipulate the
security assessment of system access for suppliers and the network security responsibilities to be
fulfilled. The company continuously strengthens IT infrastructure construction and network security
02 04 management to improve the quality efficiency and compliance level of informatization operation
Detailed Effective Precise and maintenance. In 2025 the Management Measures for Employee Information Security was Tax Information Examination Control and
In-depth Identification of
Formulation of
Response to added and the Management Measures for Information Security Incidents was revised continuously of Tax
Analysis Potential Risks
Risk Response
Regulations Strategies Risks improving the information security management system especially for the protection of sensitive
01 03 05 data and personal privacy data. An annual review of the information security management system
is conducted to ensure the effective implementation of these systems. A company-level monthly
scheduling mechanism has been established to coordinate overall network security efforts and
to ensure the proper implementation of all tasks. In 2025 no data security or customer privacy
leakage incidents occurred.
104 2025 Shougang Co. Sustainability ReportThe company actively carries out information security certification construction to ensure the
effective and stable operation of the information security system. We continuously strengthen the Source Governance
classified protection of cybersecurity for information systems and actively carry out level protection
assessment and testing. Currently 33 sets of information systems have successfully passed the The company continues to deepen the source governance of information security fully
classified protection assessment. embedding security control requirements into the system full-lifecycle management process
and strictly implementing the requirement that system construction and security protection
Jingtang Co. passed the "Trusted are planned implemented and put into operation simultaneously. Security considerations are
Information Security Assessment Shougang Zhixin passed the ISO/IEC 27001 prioritized during the scheme planning and design stage to comprehensively judge potential
Exchange (TISAX)" certification. surveillance certification and the "Trusted security risks and optimize system architecture design achieving the organic unity of high
Information Security Assessment Exchange reliability high performance and high security.(TISAX)" certification.Classified Management
The company implements a graded and classified management system for information
security risk incidents. Once any suspicious situation is identified an emergency response
process is immediately activated which includes reporting investigation handling and
feedback. This ensures that data security incidents are addressed promptly and effectively
safeguarding the integrity and confidentiality of company information.Emergency Drills
The company regularly conducts two sets of systems switching and data recovery drills
and holds network security emergency drills for each system annually. By simulating real-
world scenarios these drills test the feasibility and effectiveness of the emergency response
mechanism. In 2025 the company carried out a total of 33 network and information security
emergency drills fully evaluating the content drill process and drill effects confirming that
the emergency plan system is effective.Qiangang Co. passed the ISO/IEC
27001 surveillance certification.
Cold-R Co. passed the "Trusted Information Security Vulnerability Scanning
Assessment Exchange (TISAX)" certification.The company has built a regularized and automated vulnerability monitoring and collection
Network and Information Security Risk Management system. By collecting network and information security vulnerability data and conducting regular vulnerability scans potential security vulnerabilities are discovered and repaired in
a timely manner to ensure the security and stability of the system. In 2025 the closed-loop
Shougang Co. has established a network and information security risk management mechanism rate of vulnerability disposal reached 100% and no security incidents occurred due to the
centered on prevention and continuous improvement. The company continually enhances its exploitation of vulnerabilities.contingency plans and incident response mechanisms by setting up a three-tiered emergency
response system that includes an IT emergency response plan a system emergency response plan Information Security Training
and a business emergency response plan. Every year an IT emergency response plan is drafted an
emergency drill plan is formulated and drills are conducted with progressively increased testing Regular information security training and education
frequency to ensure a swift response and effective handling in the event of a data security incident. activities are conducted for all employees and
information security and privacy protection training
To prevent malicious programs cyber-attacks information sabotage and other incidents that could is carried out for all new employees to enhance their
compromise the confidentiality integrity and availability of its information assets and to avoid security awareness and skill levels creating a culture
major information security events the company has implemented a series of initiatives focusing of information security and privacy protection for
on source governance classified management emergency drills vulnerability scanning and all staff. In 2025 a total of 28 information security
information security awareness training. training sessions were organized.
2025 Shougang Co. Sustainability Report 105Key Performance Indicators Form Environmental Indicator Unit 2023 2024 2025
Proportion of clean energy / renewable
energy consumption % 0.82 0.99 2
Economic Indicator Unit 2023 2024 2025 Volume of externally sourced scrap 1000 tonnes 1116 2813 3324
Operating revenue RMB 1000 113761444 1084619938 102918418 Volume of internally recovered scrap 1000 tonnes 414 956 1053
Profit before tax RMB 1000 900320 7537628 1290205 Electricity consumption Million kWh 14748 15908 15245
Net profit RMB 1000 753805 6034788 1074862 Self-generated electricity volume Million kWh 7645 7611 7980
Total tax RMB 1000 2728941 1620348 2816910 Proportion of self-generated electricity % 48.56 47.84 52.35
Self-provided clean energy generation
capacity (photovoltaic power generation) MW 13.70 38.90 38.90
Environmental Indicator Unit 2023 2024 2025
Annual generation of self-provided clean
Environmental investment RMB million 838 268 44 energy (photovoltaic power generation) MWh 15320 18220 44828
Total investment in environmental
protection in the past 5 years RMB million 4701 4975 3202 Purchased green electricity Million kWh 916 1280 1998
Environmental pollution incidents Item 0 0 0 Proportion of purchased green electricity % 6.21 8.05 12.74
Environmental fines during the reporting RMB 1000 0 0 0 Annual fresh water consumption 1000 tonnes 68787 64922 57033period
Environment training coverage % 100 100 100 Water recycled rate % 98.73 98.79 98.80
Environmental protection performance
evaluation Grade A A A Particulate matter (PM) emissions Tonne 5397.81 5397.15 4888.92
(The highest grade: A)
Sulfur dioxides (SO2) emissions Tonne 2075.01 2000.92 1761.83
Proportion of operations certified by the
environmental management system % 100 100 100 Nitrogen oxides (NOx) emissions Tonne 4022.14 4091.70 4021.65
Proportion of operations certified by the
energy management system % 100 100 100 Business impact of water-related events RMB 1000 0 0 0
Energy consumption Tonne of standard coal 13898235 16055181 12556125 Total wastewater discharge 1000 tonnes 373.74 346.60 425.19
Total natural gas consumption m3 242155100 230108541 249262939 Industrial wastewater discharge 1000 tonnes 373.74 346.60 425.19
Total steam consumption m3 2381176 2001625 2239223 Domestic wastewater discharge 1000 tonnes 0 0 0
Total raw coal consumption Tonne 6704644 6393322 6328797 Chemical oxygen demand (COD) in
wastewater discharge Kg 1590.00 639.03 1117.61
Clean energy / renewable energy Tonne of standard
consumption coal 114459 159551 251095 Ammonia nitrogen (NH3-N) in wastewater
discharge Kg 69.00 54.66 48.96
Solar energy consumption Tonne of standard coal 114459 159551 251095 Waste generation Million tonnes 13.05 13.46 13.26
General waste generation Million tonnes 12.67 13.00 12.90
8 During the reporting period Jingtang Co. acquired 100% equity interest in Hebei Shougang Jingtang Machinery Co. Ltd. through a business
combination under common control. In accordance with the Accounting Standards for Business Enterprises and relevant regulations the General waste recycled Million tonnes 12.67 13.00 12.90
company has retrospectively adjusted the opening balances of the consolidated financial statements and the relevant data for the comparative
periods. Hazardous waste generation Million tonnes 0.38 0.46 0.36
106 2025 Shougang Co. Sustainability ReportEnvironmental Indicator Unit 2023 2024 2025 Social Indicator Unit 2023 2024 2025
Hazardous waste recycled Million tonnes 0.38 0.44 0.36 Number of employees with disabilities Person 212 170 149
Waste recycled Million tonnes 13.05 13.44 13.26
Proportion of employees with disabilities % 1.16 0.95 0.81
Proportion of waste recycled % 99.98 99.86 100
Comprehensive utilization rate of solid Employee quit rate % 1.23 2.18 0.36
waste % 100 100 100
Voluntary quit rate % 1.23 2.18 0.36
Comprehensive utilization rate of steel
slag % 100 100 100
Quit rate of male employees % 1.15 2.14 0.35
Comprehensive utilization rate of dust % 100 100 100
Quit rate of female employees % 0.35 2.53 0.40
GHG emissions (Scope 1) tCO2e 41192512 41644387 41831526
GHG emissions (Scope 2) tCO2e 2786781 2580827 2589122 Quit rate of employees under 30 years old % 2.58 4.18 1.31
GHG emissions (Scope 1 & 2) tCO2e 43979293 44225214 44420648
Quit rate of employees aged 30-40 % 0.74 0.97 0.30
Quit rate of employees aged 40-50 % 0.12 0.54 0.18
Social Indicator Unit 2023 2024 2025
Quit rate of employees 50 years old or % 0.35 4.92 0.15
Total number of employees Person 18226 17762 18293 older
Number of male employees Person 16322 15932 16556 Signing rate of labor contracts % 100 100 100
Number of female employees Person 1904 1830 1737 Proportion of employees covered by
collective agreements % 100 100 100
Number of employees aged 30 or
younger Person 1656 1500 1980 Social insurance coverage rate % 100 100 100
Number of employees aged 30-40 Person 9244 8161 8651 Return to work rate of female employees
that took parental leave % 91.79 100 100
Number of employees aged 40-50 Person 4452 5066 5068 Retention rates of female employees that
took parental leave % 100 100 100
Number of employees aged 50 or older Person 2874 3035 2594
Total number of new hires Person 206 200 113
Number of employees with master
degree or above Person 1631 1628 1645 Number of male new hires Person 176 180 96
Number of employees with bachelor Number of female new hires Person 30 20 17
degree Person 7935 7911 8227
Number of discrimination and
Number of associate employees Person 5573 5397 5439 harassment incidents Item 0 0 0
Number of employees at vocational Training ratio of employees for anti
schools and below Person 3087 2826 2982 discrimination and opposition to human % 100 100 100
rights violations
Number of labor dispatched employees Person 0 0 0
Number of incidents of child labor
Number of part-time employees Person 0 0 0 forced labor and human trafficking
Item 0 0 0
Vocational training input RMB 1000 21041 16150 19900
Proportion of ethnic minority employees % 4.86 4.96 4.61
Number of employee training Time 1223 1517 1603
Proportion of employees belonging to
vulnerable groups % 11.25 12.73 10.31 Training coverage % 100 100 100
2025 Shougang Co. Sustainability Report 107Social Indicator Unit 2023 2024 2025 Social Indicator Unit 2023 2024 2025
Total training hours Hour 1867841 1824085 1884179 Customer satisfaction Score 98.76 98.80 98.98
Per capita training hours Hour 104 102 103 Amount of damages incurred due to
major safety and quality liability incidents RMB million 0 0 0
Percentage of employees who regularly related to products and services
receive performance and career % 100 100 100
development examinations Total number of suppliers NOS 3246 3493 3553
Amount invested in employee work injury
insurance RMB 1000 26424 25160 28524
Proportion of suppliers in mainland
China % 100 100 100
Employee work injury insurance coverage % 100 100 100 Total number of procurement orders on rate bidding procurement platform Item 31638 36788 37081
Amount invested in employee workplace
safety liability insurance RMB 1000 1091 1081 1042
Proportion of procurement orders on
bidding procurement platform % 100 100 100
Employee workplace safety liability
insurance coverage rate % 100 100 100 Number of ESG training activities for suppliers Time 439 191 242
Physical examination coverage % 100 100 100
Total ESG training hours for suppliers Hour 487 410 474
Occupational disease frequency % 0 0 0
R&D investments RMB 1000 5022122 4892268 4791579
Number of newly added occupational
diseases Person 0 0 0 Proportion of R&D investment to
operating revenue % 4.41 4.51
94.66
Total investment in work safety RMB million 167 155 152
Number of R&D staff Person 2481 2396 2139
Number of work safety accidents NOS 0 0 2
Proportion of R&D staff % 13.61 13.49 11.69
Number of work safety accidents of
general grade or higher NOS 0 0 0 Proportion of R&D personnel with a
master's degree or higher % 28.21 32.22 33.33
Number of work-related deaths Person 0 0 0
Number of valid patents PCS 3570 3924 4261
Work injury rate % 0 0 0.012
Number of invention patents applied to
Working days lost Day 0 0 210 core business operations PCS 3570 3924 4261
Injury Number of software copyrights PCS 13 17 13
frequency
Lost time injury frequency rate (LTIFR) rate per 0 0 0.06 Number of patents applied PCS 1219 945 1015
million hours
worked Number of invention patents applied PCS 737 598 674
Number of safety training Person-times 225891 278983 290421 Number of patents granted PCS 685 405 469
Safety training hours Hour 928362 1129329 1169451 Number of innovation patents granted PCS 229 125 206
Safety risk prevention training coverage % 100 100 100
9 During the reporting period Jingtang Co. acquired 100% equity interest in Hebei Shougang Jingtang Machinery Co. Ltd. through a business
Percentage of products that need to be
withdrawed and recalled for safety and % 0 0 0 combination under common control. In accordance with the Accounting Standards for Business Enterprises and relevant regulations the
health reasons company has retrospectively adjusted the opening balances of the consolidated financial statements and the relevant data for the comparative
periods.
108 2025 Shougang Co. Sustainability ReportGovernance Indicator Unit 2023 2024 2025 Governance Indicator Unit 2023 2024 2025
Proportion of independent directors % 50 50 33.33 Proportion of shares pledged by major shareholders
(holding 5% or more) or top 10 shareholders % 0 0 0
Proportion of independent directors serving on Boards
of more than 3 listed companies % 25 0 0 Number of compliance training participants Person 12598 13283 14326
Proportion of independent directors serving on Boards
of more than 6 listed companies % 0 0 0 Compliance training coverage % 69 74 78
Proportion of female directors % 0 12.5 44.44 Total time of compliance training Hour 28954 29357 32357
Number of board meetings Time 10 8 12 Proportion of management personnel who have
received anti-bribery and anti-corruption training % 100 100 100
Attendance rate of directors % 100 100 100
Proportion of employees who have received anti-bribery
and anti-corruption training % 100 100 100
Proportion of female employees in management % 16.98 18.64 16.95
Amount involved in litigation or significant
administrative penalties due to the company's unfair RMB 1000 0 0 0
Share-proportion of senior executives % 0.0057 0.0029 0.000004 competition practices
2025 Shougang Co. Sustainability Report 109Content Index Disclosure Location
2-17 Collective knowledge of the highest governance body Sustainable Development Management
2-18 Evaluation of the performance of the highest Sustainable Development GRI Content Index governance body Management
2-19 Remuneration policies Employee Development
Statement of use Shougang Co. has reported in accordance with the GRI Standards for the period 2-20 Process to determine remuneration Employee DevelopmentJanuary 1st to December 31st 2025.
2-22 Statement on sustainable development strategy Chairman's Message
GRI 1 used GRI 1: Foundation 2021
2-23 Policy commitments Integrity Ecology Employee
Applicable GRI Sector GRI 2: General Development
Standard(s) Non-use of GRI Sector standards. Disclosures
2021 2-24 Embedding policy commitments Integrity Ecology
2-25 Processes to remediate negative impacts Integrity Ecology
Disclosure Location
2-1 Organizational details About Us 2-26 Mechanisms for seeking advice and raising concerns
Stakeholder Engagement
Employee Development
2-2 Entities included in the organization's sustainability About This Report 2-27 Compliance with laws and regulations Each chapterreporting
2-28 Membership associations Innovation
2-3 Reporting period frequency and contact point About This Report
2-29 Approach to stakeholder engagement Sustainable Development
2-4 Restatements of information About This Report Management
2-5 External assurance ―― 2-30 Collective bargaining agreements Employee Development
Sustainable Development
2-6 Activities value chain and other business relationships About Us Supply Chain 3-1 Process to determine material topicsSecurity Management
2-7 Employees Employee Development GRI 3: Material
Topics 2021 3-2 List of material topics
Sustainable Development
Management
2-8 Workers who are not employees Occupational Health and Safety Supply Chain Security
GRI 2: General 3-3 Management of material topics
Sustainable Development
Management
Disclosures 2-9 Governance structure and composition Corporate Governance
2021 201-1 Direct economic value generated and distributed Key Performance Indicators
2-10 Nomination and selection of the highest governance
Form Annual Report
body Corporate Governance
GRI 201: 201-2 Financial implications and other risks and
2-11 Chair of the highest governance body Corporate Governance Economic opportunities due to climate change
Climate Response
Performance
Corporate Governance 2016 201-3 Defined benefit plan obligations and other retirement
2-12 Role of the highest governance body in overseeing the
Employee Development
management of impacts Sustainable Development
plans
Management
201-4 Financial assistance received from government Annual Report
2-13 Delegation of responsibility for managing impacts Corporate Governance GRI 203: 203-1 Infrastructure investments and services supported About Us Social Contributions
Indirect
2-14 Role of the highest governance body in sustainability Sustainable Development Economic reporting Management Impacts 2016 203-2 Significant indirect economic impacts Social Contributions
2-15 Conflicts of interest Integrity Ecology GRI 204:
Procurement 204-1 Proportion of spending on local suppliers Key Performance Indicators
2-16 Communication of critical concerns Stakeholder Engagement Practices 2016 Form
110 2025 Shougang Co. Sustainability ReportDisclosure Location Disclosure Location
205-1 Operations assessed for risks related to corruption Integrity Ecology 305-1 Direct (Scope 1) GHG emissions Climate Response
GRI 205: Anti- 205-2 Communication and training about anti-corruption Integrity Ecology 305-2 Energy indirect (Scope 2) GHG emissions Climate Responsecorruption 2016 policies and procedures
205-3 Confirmed incidents of corruption and actions taken Integrity Ecology 305-3 Other indirect (Scope 3) GHG emissions ――
GRI 206: Anti- 305-4 GHG emissions intensity Climate Response
competitive 206-1 Legal actions for anti-competitive behavior anti-trust GRI 305:
Behavior 2016 and monopoly practices
Integrity Ecology
Emissions 2016 305-5 Reduction of GHG emissions Climate Response
207-1 Approach to tax Risk Management The company's production
305-6 Emissions of ozone-depleting substances (ODS) and operation activities do not
207-2 Tax governance control and risk management Risk Management generate ODS
GRI 207:
Tax 2019 207-3 Stakeholder engagement and management of Nitrogen oxides (NOx) sulfur oxides (SOx) and other concerns related to tax Risk Management 305-7 significant air emissions Environmental Management
207-4 Country-by-country reporting ――
306-1 Waste generation and significant waste-related impacts Environmental Management
301-1 Materials used by weight or volume Resource Utilization
GRI 301: 301-2 Recycled input materials used Resource Utilization 306-2 Management of significant waste-related impacts Environmental ManagementMaterials 2016 GRI 306:
301-3 Reclaimed products and their packaging materials Resource Utilization Waste 2020 306-3 Waste generated Environmental Management
302-1 Energy consumption within the organization Resource Utilization 306-4 Waste diverted from disposal Environmental Management
302-2 Energy consumption outside of the organization Resource Utilization 306-5 Waste directed to disposal Environmental Management
GRI 302: 302-3 Energy intensity Key Performance Indicators GRI 308: 308-1 New suppliers that were screened using environmental
Energy 2016 Form Supplier criteria
Supply Chain Security
Environmental
302-4 Reduction of energy consumption Resource Utilization Assessment
308-2 Negative environmental impacts in the supply chain 2016 and actions taken Supply Chain Security
302-5 Reductions in energy requirements of products and services Resource Utilization
401-1 New employee hires and employee turnover Key Performance Indicators Form
303-1 Interactions with water as a shared resource Resource Utilization
GRI 401:
303-2 Management of water discharge-related impacts Resource Utilization Employment 401-2 Benefits provided to full-time employees that are not
GRI 303: Water 2016 provided to temporary or part-time employees
Employee Development
and Effluents 303-3 Water withdrawal Resource Utilization
2018 401-3 Parental leave Employee Development Key
303-4 Water discharge Resource Utilization Performance Indicators Form
303-5 Water consumption Resource Utilization GRI 402: Labor/
Management 402-1 Minimum notice periods regarding operational The company has no material
Operational sites owned leased managed in or Relations 2016
changes operational changes
304-1 adjacent to protected areas and areas of high Biodiversity Protection
biodiversity value outside protected areas 403-1 Occupational health and safety management system Occupational Health and Safety
GRI 304: GRI 403:
Biodiversity
304-2 Significant impacts of activities products and services 2016 on biodiversity Biodiversity Protection
Occupational Hazard identification risk assessment and incident
Health and 403-2 investigation Occupational Health and Safety
Safety 2018
304-3 Habitats protected or restored Biodiversity Protection 403-3 Occupational health services Occupational Health and Safety
2025 Shougang Co. Sustainability Report 111Disclosure Location Disclosure Location
403-4 Worker participation consultation and communication GRI 410: on occupational health and safety Occupational Health and Safety Security 410-1 Security personnel trained in human rights policies or
Practices 2016 procedures
――
403-5 Worker training on occupational health and safety Occupational Health and Safety
413-1 Operations with local community engagement impact
403-6 Promotion of worker health Occupational Health and Safety assessments and development programs
Social Contributions
GRI 403:
Occupational 403-7 Prevention and mitigation of occupational health and
GRI 413: Local
safety impacts directly linked by business relationships Occupational Health and Safety Communities
The company has not identified
Health and 2016
413-2 Operations with significant actual and potential
any operations that have
Safety 2018 negative impacts on local communities actual or potential significant
403-8 Workers covered by an occupational health and safety management system Occupational Health and Safety
negative impacts on the local
community
403-9 Work-related injuries Key Performance Indicators GRI 414: 414-1 New suppliers that were screened using social criteria Supply Chain SecurityForm Supplier Social
Assessment
414-2 Negative social impacts in the supply chain and 403-10 Work-related ill health Occupational Health and Safety 2016 actions taken Supply Chain Security
404-1 Average hours of training per year per employee Key Performance Indicators 416-1 Assessment of the health and safety impacts of Product Quality and Customer Form GRI 416: product and service categories Service
Customer
GRI 404: Programs for upgrading employee skills and transition Health and Training and 404-2 assistance programs Employee Development Safety 2016 416-2 Incidents of non-compliance concerning the health Product Quality and Customer Education 2016 and safety impacts of products and services Service
404-3 Percentage of employees receiving regular performance and career development reviews Employee Development 417-1 Requirements for product and service information and Product Quality and Customer labeling Service
GRI 405: GRI 417:
Diversity Marketing and 417-2 Incidents of non-compliance concerning product and Product Quality and Customer
and Equal 405-1 Diversity of governance bodies and employees Corporate Governance Labeling 2016 service information and labeling Service
Opportunity Employee Development
2016
417-3 Incidents of non-compliance concerning marketing Product Quality and Customer communications Service
GRI 406: Non-
discrimination 406-1 Incidents of discrimination and corrective actions taken Employee Development GRI 418: 2016 Customer 418-1 Substantiated complaints concerning breaches of Product Quality and Customer
Privacy 2016 customer privacy and losses of customer data Service
GRI 407:
Freedom of
Association 407-1 Operations and suppliers in which the right to freedom and Collective of association and collective bargaining may be at risk Employee Development
Bargaining Explanation of Omitted Disclosed Items for Shougang Co. is as follows:
2016
GRI 408: Child Operations and suppliers at significant risk for 304-4，411-1，415-1 The core business of the company has little relevance or importance to this index
Labor 2016 408-1 incidents of child labor Employee Development information therefore they will not be disclosed
GRI 409: Forced
or Compulsory 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Employee Development 2-21，202-1，202-2，405-2
Due to information confidentiality requirements they will not be disclosed to the
Labor 2016 public temporarily
112 2025 Shougang Co. Sustainability ReportSDGs Index Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen
Stock Exchange—Sustainability Report (For Trial Implementation)
SDGs Brief introduction Location
1 No Poverty: End poverty in all its forms everywhere. Social Contributions Topic Index
3 Good Health and Well-being: Ensure healthy lives and promote well-being for all at all ages. Employee Development
Dimension No. Topic Clause Location
1 Climate response Articles 21-28 Climate Response
4 Quality Education: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. Social Contributions 2 Pollutant discharge Article 30 Environmental Management
5 Gender Equality: Achieve gender equality and empower all women and
3 Waste disposal Article 31 Environmental Management
girls. Employee Development
4 Ecosystem and biodiversity Article 32 Biodiversity Protection
6 Clean Water and Sanitation: Ensure availability and sustainable
protection
management of water and sanitation for all. Resource Utilization Environment
5 Environmental compliance Article 33 Environmental Management
7 Affordable and Clean Energy: Ensure access to affordable reliable Resource Utilization
management
sustainable and modern energy for all. Climate Response
6 Energy utilization Article 35 Resource Utilization
Decent Work and Economic Growth: Promote sustained inclusive and 7 Water resources utilization Article 36 Resource Utilization
8 sustainable economic growth full and productive employment and Employee Development
decent work for all. 8 Circular economy Article 37 Circular Economy
Industry Innovation and Infrastructure: Build resilient infrastructure 9 Rural revitalization Article 39 Social Contributions
9 promote inclusive and sustainable industrialization and foster Innovation Intelligent
innovation. Manufacturing 10 Social contributions Article 40 Social Contributions
10 Reduced Inequalities: Reduce inequality within and among countries. Employee Development
11 Innovation Article 42 Innovation Intelligent Manufacturing
11 Sustainable Cities and Communities: Make cities and human settlements inclusive safe resilient and sustainable. Social Contributions 12 Ethics of science and technology Article 43 Innovation
12 Responsible Consumption and Production: Ensure sustainable
Circular Economy Product
Quality and Customer Community 13 Supply chain security Article 45 Supply Chain Securityconsumption and production patterns. Service
14 Equal treatment of SMEs Article 46 Supply Chain Security
13 Climate Action: Take urgent action to combat climate change and its impacts. Climate Response Product and service safety Product Quality and Customer 15 and quality Article 47 Service Occupational Health and
14 Life Below Water: Conserve and sustainably use the oceans seas and
Safety
marine resources for sustainable development. Biodiversity Protection
16 Data security and customer Data Security Product Quality privacy Article 48 and Customer Service
Life on Land: Protect restore and promote sustainable use of
15 terrestrial ecosystems sustainably manage forests combat 17 Employees Article 50 Employee Developmentdesertification and halt and reverse land degradation and halt Biodiversity Protection
biodiversity loss. 18 Due diligence Article 52 Supply Chain Security
Peace Justice and Strong Institutions: Promote peaceful and inclusive 19 Stakeholder engagement Article 53 Stakeholder Engagement
16 societies for sustainable development provide access to justice for all Integrity Ecology Sustainability-
and build effective accountable and inclusive institutions at all levels. related
governance 20 Anti-commercial bribery and anti-corruption Article 55 Integrity Ecology
17 Partnerships for the Goals: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development. Supply Chain Security 21 Fair competition Article 56 Integrity Ecology
2025 Shougang Co. Sustainability Report 113Interpretation Terms Definition
Data Safety Law Refers to Data Safety Law of the People's Republic of China
Terms Definition Solid Waste Pollution Refers to Solid Waste Pollution Environment Prevention Law of the People's Environment Prevention Law Republic of China
CSRC Refers to China Securities Regulatory Commission
Energy Conservation Law Refers to Energy Conservation Law of the People's Republic of China
SASAC Refers to State-owned Assets Supervision and Administration Commission of the State Council Water Law Refers to Water Law of the People's Republic of China
National Development and Reform Commission of the People's Water Pollution Prevention and Refers to Water Pollution Prevention and Control Law of the People's NDRC Refers to Republic of China Control Law Republic of China
Ministry of Industry and Information Technology of the People's Patent Law Refers to Patent Law of the People's Republic of ChinaMIIT Refers to Republic of China
Trademark Law Refers to Trademark Law of the People's Republic of China
SZSE Refers to Shenzhen Stock Exchange
Copyright Law Refers to Copyright Law of the People's Republic of China
Company Law Refers to Company Law of the People's Republic of China
Advertising Law Refers to Advertising Law of the People's Republic of China
Securities Law Refers to Securities Law of the People's Republic of China
Consumer Rights Protection Refers to Consumer Rights Protection Law of the People's Republic of Civil Code Refers to Civil Code of the People's Republic of China Law China
Criminal Law Refers to Criminal Law of the People's Republic of China Listing Rules Refers to Listing Rules of Shenzhen Stock Exchange
Anti-Unfair Competition Law Refers to Anti-Unfair Competition Law of the People's Republic of China
Self-Regulatory Guidelines
No. 1 for Companies Listed— Self-Regulatory Guidelines No. 1 for Companies Listed on
Anti-Money Laundering Law Refers to Anti-Money Laundering Law of the People's Republic of China Standard Operations of Main Refers to Shenzhen Stock Exchange—Standard Operations of Main Board
Board Listed Companies Listed Companies
Audit Law Refers to Audit Law of the People's Republic of China
Self-Regulatory Guidelines
Production Safety Law Refers to Production Safety Law of the People's Republic of China No. 17 for Companies Listed— Self-Regulatory Guidelines No. 17 for Companies Listed on
Sustainability Report (For Trial Refers to Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation)
Law on the Prevention and Implementation)
Control of Occupational Refers to Law of the People's Republic of China on the Prevention and
Diseases Control of Occupational Diseases Self-Regulatory Guidelines
No. 3 for Companies Listed— Refers to Self-Regulatory Guidelines No. 3 for Companies Listed on
Product Quality Law Refers to Product Quality Law of the People's Republic of China Preparation of Sustainability Shenzhen Stock Exchange—Preparation of Sustainability Report
Report
Labor Law Refers to Labor Law of the People's Republic of China
The Articles of Association Refers to The Articles of Association of Beijing Shougang Co. Ltd.Labor Contract Law Refers to Labor Contract Law of the People's Republic of China
Board of Directors the Board Refers to The Board of Directors of Beijing Shougang Co. Ltd.Cybersecurity Law Refers to Cybersecurity Law of the People's Republic of China
Supervisory Committee Refers to Supervisory Committee of Beijing Shougang Co. Ltd.Personal Information Refers to Personal Information Protection Law of the People's Republic of Protection Law China Shareholders' General Meeting Refers to The Shareholders' General Meeting of Beijing Shougang Co. Ltd.
114 2025 Shougang Co. Sustainability ReportSustainability Report 2025
Beijing Shougang Company Limited
Beijing Shougang Company Limited
Sustainability Report 2025
Beijing Shougang Company Limited Sustainability Report 2025
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