Beijing Shougang Co. Ltd. Annual Report 2025 Beijing Shougang Co. Ltd.2025 Annual Report 16 April 2026 1Beijing Shougang Co. Ltd. Annual Report 2025 2025 Annual Report SECTION I. IMPORTANT NOTICE CONTENT DEFINITIONS The Board of Directors (the “Board”) all directors and senior executives of the Company warrant that there are no false representations misleading statements or material omissions in this annual report; and are jointly and individually responsible for the truthfulness accuracy and completeness of the information contained in this annual report.Chairman Zhu Guosen General Manager Sun Maolin Chief Accountant Liu Tonghe and Accounting Officer Cui Xiumei declare that they guarantee the authenticity accuracy and completeness of the financial reports in this year's report.Whether any directors failed to attend the Board meeting convened to deliberate on the annual report in person □ YES□NO Except for the following directors all other directors attended the Board meeting for deliberating the current annual report in person Position of the Name of director Reason for not director not Name of the not attending in attending in attending in entrusted person person person person Employee Out on official Chen Xiaowei Representative Wang Cuimin business Director 2Beijing Shougang Co. Ltd. Annual Report 2025 Independent Out on official Peng Feng Yu Xingxi Director business Certain risks that may exist have been elaborated by the Company in this report. Please refer to Discussion and Analysis of Business Operations for details.The profit distribution plan approved by the board of directors is as follows: based on 7754967370 cash dividends of RMB 0.4 (including tax) will be distributed to all shareholders for every 10 shares and 0 bonus shares (including tax) will be issued and there is no conversion of reserve into share capital. 3Beijing Shougang Co. Ltd. Annual Report 2025 CONTENTS SECTION I. IMPORTANT NOTICE CONTENT DEFINITIONS...... 2 SECTION II. COMPANY PROFILE AND MAJOR FINANCIAL IN.. 12 SECTION III. DISCUSSION AND ANALYSIS OF BUSINESS O.. 15 SECTION IV: CORPORATE GOVERNANCE ENVIRONMENT AND S.. 39 4Beijing Shougang Co. Ltd. Annual Report 2025 File directory for reference 1. Accounting statements signed and stamped by the Chairman General Manager Chief Accountant and Head of Accounting Institution. 2. Original audit report with the seal of the accounting firm signature and seal of the CPA. 3. Original copies of all company documents and announcements publicly disclosed in newspapers designated by the China Securities Regulatory Commission during the reporting period. 4. “The Articles of Association of Beijing Shougang Co. Ltd.” etc. 5Beijing Shougang Co. Ltd. Annual Report 2025 Interpretation Items Refers to Contents CSRC Refers to China Securities Regulatory Commission NDRC Refers to National Development and Reform Commission MIIT Refers to Ministry of Industry and Information Technology CISA Refers to China Iron and Steel Association CAAM Refers to China Association of Automobile Manufacturers Guangxi Nanning Yuchai Petronas Lube Co.Ltd. Refers to Shenzhen Stock Exchange Company the Company/the company or Shougang Co. Refers to Beijing Shougang Co. Ltd.Shougang Group (Reforming from an enterprise owned by the whole people to Shougang or Shougang Group Refers to exclusively state-owned companies name of Shougang Group is changed fromShougang Corporation. The specific content is detailed in 15 June 2017 public announcement.) Company Law Company Law of the People's Republic of China Securities Law Securities Law of the People's Republic of China Listing Rules of SZSE Refers to Listing Rules of Shenzhen Stock Exchange The Articles of Association Refers to The Articles of Association of Beijing Shougang Co. Ltd.Board of Directors or the Board Refers to The board of directors of Beijing Shougang Co. Ltd.Supervisory Committee The supervisory committee of Beijing Shougang Co. Ltd.Shareholders’ Meeting Shareholders' Meeting of the Company Refers to The Shareholders’ Meeting/General Meeting of Beijing Shougang Co. Ltd.Qiangang Co. Refers to Shougang Qian'an Iron & Steel Co. Ltd. (Branch of the Company) Cold-R Co. Refers to Beijing Shougang Cold Rolling Co. Ltd. (Holding subsidiary of the Company theCompany holds 70.2806%) Shougang Zhixin Electromagnetic Materials (Qian'an) Co. Ltd. (Holding subsidiary of the Company the Company holds 66.2310%) was reformed by the shareholding Zhixin Co. Refers to system of Shougang Zhixin Qian'an Electromagnetic Materials Co. Ltd. and changed its name to Shougang Zhixin Electromagnetic Materials (Qian'an) Co. Ltd. The specific content is detailed in 29 March 2024 public announcement.Steel Trading Refers to Beijing Shougang Steel Trading Investment Management Co. Ltd. (Wholly-ownedsubsidiaries of the Company) The integrated production organization and product research and development system Qianshun Base Refers to formed by Qiangang Co. located in Qian-an Hebei province and Cold-R Co. located in Shunyi District Beijing.Jingtang Co./Jingtang Base. Refers to Shougang Jingtang United Iron&Steel Co. Ltd. (Holding subsidiary of the Companythe Company holds 70.1823% Steel Trading Co. holds 29.8177%) Since the shutdown of the main process of iron and steel manufacturing in late 2010 which was operated in Shijingshan District Beijing a transaction between the Company and Shougang carried out. The transaction event was announced as "Related Party Transactions between Beijing Shougang Co. Ltd. and Shougang Corporation - Major First Reorganization and Previous Major Assets Swap and Asset Purchase through Issue of Shares". The event was unconditional Assets Reorganization Refers to approved by China Securities Regulatory Commission Restructuring Committee on 16January 2013. On 29 January 2014 the Company received the approval document named "The Approval of Related Party Transactions between Beijing Shougang Co. Ltd.and Shougang Corporation - Major Assets Reorganization and Asset Purchase through Issue of Shares" which was issued by China Securities Regulatory Commission. On 25 April 2014 the reorganization was accomplished.On 23 April 2015 trading in the shares of the Company was suspended and the major assets swap launched. Main content of the swap is: 100% shareholding of Guizhou Investment Co. Ltd. was replaced with 51% shareholding of Jingtang Co. any Second Reorganization Refers to insufficiency was paid in cash. These major assets swap was accomplished at the end of2015. On 27 April 2016 re-election of the board of directors and amendment of Articles of Association of Jingtang Co. was accomplished and the Company was qualified to consolidate the financial statements of Jingtang Co. The second swap was then accomplished.Early Vendor Involvement means involving the downstream users at early stage of EVI Refers to product development process and fully understanding users’ requirements for rawmaterial so that high-performance materials and personalized services could be offered to users.Reporting Period Refers to From 1 January 2025 to 31 December 2025 Thousand Million Billion Refers to RMB Thousand RMB Million RMB Billion 6Beijing Shougang Co. Ltd. Annual Report 2025 SECTION II. COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS I. Company information Short name of stock Shougang Stock Stock code 000959 Stock exchange for listing of shares Shenzhen Stock Exchange Statutory Chinese name of the Company 北京首钢股份有限公司 The Chinese abbreviation of the Company 首钢股份 English name of the Company (if any) Beijing Shougang Co. Ltd.Legal representative of the Company Zhu Guosen Registered address Shijingshan Road Shijingshan District Beijing PRC Postal code of the registered address 100041 Historical changes in the registered address N/A of the Company Office address Building 3 Courtyard 6 Qunminghu South Road Shijingshan District Beijing Postal code of the office address 100041 The Company’s website www.sggf.com.cn Email address sggf@sgqg.com II. Contact information Secretary of the board Name Qiao yufei Correspondence address Building 3 Courtyard 6 Qunminghu South Road Shijingshan District Beijing Telephone 010-88293727 Fax 010-88292055 Email address qiaoyf1827@sgqg.com III. Information disclosure and place for inspection Stock exchange website for the disclosure of the annual report http://www.szse.cn/ Media and website for disclosure of the annual report China Securities Journal Securities Times Shanghai SecuritiesJournal Securities Daily. Http://www.cninfo.com.cn Place for inspection of the annual report Secretary office of the board of the Company IV. Changes of registration Organization code 911100007002343182 Changes of the core business since listing (if any) No changes Changes of controlling shareholder (if any) No changes V. Other relevant information Accounting firm engaged by the Company Name of accounting firm ShineWing Certified Public Accountants (LLP) Address of accounting firm 8/F Block A Fu Hua Mansion No. 8 Chaoyangmen BeidajieDongcheng District Beijing P.R. China Signed CPA Guo Yong Lu Min Sponsor engaged by the Company for performing continuous supervision duties in reporting period □Applicable √ Non-applicable Financial consultant engaged by the Company for performing continuous supervision duties in reporting period □Applicable √ Non-applicable VI. Major accounting data and financial indicators Whether the Company has retroactive adjustment or re-statement on previous accounting data or not √ YES □ NO 7Beijing Shougang Co. Ltd. Annual Report 2025 Reasons for retrospective adjustment or re-statement Business combinations involving entities under common control Changes 2024 over last 2023 2025 year Post- Pre-adjustment Post-adjustment adjustme Pre-adjustment Post-adjustment nt Operating revenue 102918417572.91 108310796466.52 108461993386.29 -5.11% 113761443633.43 113516432884.72 Net profit attributable to shareholders of 995635969.34 471093049.04 479418078.55 107.68% 663754519.41 666944382.42 the listed company Net profit attributable to shareholders of the listed company after 991939291.02 219517106.60 219517106.60 351.87% 527672139.72 527672139.72 deducting non- recurring profit and loss Net cash flows from operating 8136677049.73 6328728996.69 6342221368.59 28.29% 6154306071.82 6163598210.41 activities Basic earnings per share 0.1284 0.0607 0.0618 107.77% 0.0856 0.0860 Diluted earnings per share 0.1284 0.0607 0.0618 107.77% 0.0856 0.0860 An increase Weighted of 1.02 average return 1.99% 0.95% 0.97% percentag 1.35% 1.36% on net assets e points year-on- year Changes 31 December 2024 over endof last 31 December 2023 31 December 2025 year Post- Pre-adjustment Post-adjustment adjustme Pre-adjustment Post-adjustment nt Total assets 124933669457.96 131855846492.95 132047608185.06 -5.39% 137519661128.33 137658863874.58 Net assets attributable to shareholders of 50330692591.43 49617240899.57 49757985979.64 1.15% 49473789412.65 49478908464.02 the listed company The Company’s net profit before and after deducting non-recurring profit and loss in the last three fiscal years is negative and the audit profit of the last year presents that the Company’s ability of continuing operations is uncertain.□ YES √ NO The lower of the Company’s audited total profit net profit and net profit after deducting non-recurring gains and losses during the reporting period was negative.□ YES √ NO VII. Difference of accounting data under accounting rules in and out of China 1. Differences of net profit and net assets in financial statements disclosed according to International Financial Reporting Standards and Chinese Accounting Standards □ Applicable √ Non-applicable There is no difference between the net profit and net assets in the financial statements disclosed in accordance with International Financial Reporting Standards and Chinese Accounting Standards during the reporting period of the Company. 8Beijing Shougang Co. Ltd. Annual Report 2025 2. Difference of net profit and net assets in financial statements disclosed according to foreign accounting standards and Chinese Accounting Standards □ Applicable √ Non-applicable There is no difference between the net profit and net assets in the financial statements disclosed in accordance with foreign accounting standards and Chinese Accounting Standards during the reporting period of the Company.VIII.Major financial indicators by quarter in 2025 Unit: RMB Yuan Q1 Q2 Q3 Q4 Operating revenue 26533037954.72 25984089388.57 24716459072.89 25684831156.73 Net profit attributable to shareholders of the listed 327883124.37 329213545.37 296333424.54 42205875.06 company Net profit attributable to shareholders of the listed company after deducting 348677588.68 333715497.89 305583274.58 3962929.87 non-recurring profit and loss Net cash flows from operating activities -1260364624.48 3455998571.87 3264854676.87 2676188425.47 Whether there are significant differences between the above-mentioned financial indicators or the sum and the relevant financial indicators disclosed in the Company’s quarterly report and semi-annual report □ YES √ NO IX. Items and amounts of non-recurring profit and loss √ Applicable □ Non-applicable Unit: RMB Yuan Item 2025 2024 2023 Note Gains and losses on disposal of non-current assets (including the write-off that accrued for impairment of -102355801.08 -50614446.27 -22066115.49 assets) Government grant included in the current profit and loss (except for the government grant which are closely related to the business of the company and are in 109865980.75 190491675.13 137487616.66 accordance with the national unified standard quota) Reversal of impairment provisions for accounts receivable subject to separate impairment testing 2352368.89 1172292.00 33127315.83 Current net profit and loss of subsidiaries from the beginning of the period to the date of business 8027162.83 8325029.51 3189863.01 combination under the common control Profit and loss from debt reorganization 384337.24 2537679.85 Profit and loss from external entrusted loans 8990991.36 Other non-operating income and expenses except the above items -6625899.35 136430176.66 4157902.31 Other items that meet the definition of exceptional gain/loss: Less: The impact of income tax 5532744.99 25267923.93 21652772.59 The impact on non-controlling interests (post-tax) 2418725.97 3173511.00 3962558.39 Total 3696678.32 259900971.95 139272242.70 -- Particulars about other items that meet the definition of exceptional gain/loss: □Applicable √ Non-applicable During the reporting period there is no other item that meet the definition of exceptional gain/loss.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □Applicable √ Non-applicable During the reporting period there is no non-recurring profit and loss item defined and listed in "Explanatory Announcement No. 1 of Information Disclosure of Companies offering securities to the public non-recurring profit and loss" as recurring profit and loss items. 9Beijing Shougang Co. Ltd. Annual Report 2025 SECTION III. DISCUSSION AND ANALYSIS OF BUSINESS OPERATIONS I. Main business of the Company during the reporting period The Company is firmly adhering to the strategic determination of "green manufacturing intelligent manufacturing boutique manufacturing lean manufacturing and precision services" adheres to innovation- driven and promotes technological innovation to become the Company's primary competitiveness and strivesto become a globally competitive and influential listed iron and steel company. Adhere to create “manufacturing+ service” competitive advantage continuously optimizing product structure production line structure and customer structure and continuously promoting high-end product research and development with a focus on electrical steel automotive panels and tin-plated (chromium-plated) plates and medium and heavy plates thereby ensuring the supply of independent materials and the guarantee of independent technologies for major projects related to national economy and people's livelihood.The Company's main business is the production and sale of steel products and soft magnetic metallic materials (electrical steel). Its main products are used in traditional high-end manufacturing sectors such as automotive power energy home appliances food packaging and shipbuilding and offshore engineering as well as in strategic emerging industries and future industries such as new energy vehicles civil aviation and humanoid robots. 1. Zhixin Co. Zhixin Co. is a research and development manufacturing and sales base for metal soft magnetic materials (electrical steel) and is a leading global manufacturer and service provider of electrical steel.The products include two major series: oriented electrical steel and non-oriented electrical steel. Among them oriented electrical steel includes six categories of products: high magnetic induction magnetic domain refinement low noise low excitation no bottom layer and medium frequency. Zhixin Co. has independently developed low-temperature slab heating technology to produce high magnetic induction oriented electrical steel becoming the fourth enterprise in the world to industrialize all low-temperature processes; Non-oriented electrical steel includes four major categories of products: new energy vehicles stress relief annealing high- efficiency and general-purpose with stable batch production capacity for all grades.The company has the world's first high-grade non-oriented electrical steel production line for new energy vehicles and the world's first specialized production line with 100% thin specification and high magnetic induction oriented electrical steel. 2. Jingtang Co. Jingtang Co the large steel base is a company with international advanced level designed and constructed in accordance with the concept of circular economy. It has the obvious advantages of being near the sea and near the harbor large equipment high production efficiency and low cost.The products include two major series of hot and cold plates of which the hot plates are mainly hot-rolled pickling plates weather-resistant steels automobile structural steels high-performance construction steel pipeline steels and medium thickness plates for bridge steel energy steels pipeline steels marine steel and offshore steels; and the cold plates are mainly automobile sheets tin sheet cold-rolled special-use plate and color color-coated sheet series. 3. Qianshun Base Iron and steel products of Qianshun Base is an important high-end plate production base in China with world-class equipment and industry-leading clean steel manufacturing technology with high-end auto plate high-end household appliance board full range of supply capacity.The products include two major series of hot and cold plates of which the hot plates mainly contain: hot- rolled pickle sheet weather-resistant steel automobile structure steel high-strength construction machinery steel pipeline steel medium to high carbon special steel etc. The cold plates mainly contain: automobile sheet cold-rolled special-use plate etc.II. The industry situation of the Company during the reporting period In 2025 China’s economy maintained steady progress with its resilience further demonstrated. The annual GDP increased by 5.0% year-on-year. The steel market continued to exhibit strong supply and weak demand.Steel enterprises strengthened their sense of self-discipline focusing on “controlling total output optimizingsupply strengthening foundations and promoting transformation” to prevent vicious “rat race” competition and 10Beijing Shougang Co. Ltd. Annual Report 2025 jointly maintain stable market operations resulting in a significant year-on-year increase in the industry’s economic performance.In terms of product output domestic crude steel output declined year-on-year and the product structure continued to be optimized. According to data from the National Bureau of Statistics China's crude steel output in 2025 was 0.961 billion tons a decrease of 4.4% year-on-year while steel output was 1.446 billion tons an increase of 3.1% year-on-year. Under the guidance of industry self-discipline China’s crude steel output has steadily declined since reaching a historical peak of 1.065 billion tons in 2020.In terms of product prices affected by weak demand steel prices declined year-on-year throughout the year. According to statistics from the CISA the average value of the China Steel Price Index (CSPI) in 2025 was 93.19 points a year-on-year decrease of 9.05%. Among them the average value of the long material index is 94.82 points a year-on-year decrease of 9.88%; The average value of the board index was 91.71 points a year- on-year decrease of 8.82%.On the upstream side raw fuel costs fluctuate downward. According to customs data China imported 1.26 billion tons of iron ore in 2025 with an average import price of 107.1 US dollars per ton representing a year-on- year decrease of 8.8%. The procurement costs of coking coal metallurgical coke and scrap steel of key statistical enterprises of CISA decreased by 27.32% 24.36% and 9.94% year-on-year respectively.Downstream the structure of steel demand continued to diversify. In 2025 the share of steel used in China’s manufacturing sector rose to 51% while that used in the construction sector fell to 49%. High-end manufacturing sectors represented by the automotive and new energy industries gradually became the main drivers of steel consumption while new quality productive forces such as the low-altitude economy and robotics saw rapid development. In terms of automotive manufacturing data from the CAAM shows that China’s cumulative automobile production and sales reached 34.531 million units and 34.40 million units in 2025 increase 10.4% and 9.4% year-on-year respectively setting new historical highs for both production and sales.Among them the annual production and sales of new energy vehicles both exceeded 16 million units. In terms of new energy infrastructure development information from the National Energy Administration (NEA) indicates that China’s newly installed capacity of wind power and solar power generation exceeded 430 million kilowatts nationwide in 2025 a year-on-year increase of 22.0% reaching another all-time high. In terms of imports and exports steel exports increased in volume but declined in price while imports continued to decline. According to customs data steel exports in 2025 totaled 119.019 million tons representing a year-on-year increase of 7.5% with an average export price of USD 694 per ton a decrease of 8.1% year-on-year. Steel imports totaled 6.059 million tons a decrease of 11.1% year-on-year. In terms of the export product mix steel billets and wire rods recorded substantial year-on-year increases in export volume. Among flat steel products high-end varieties such as coated and plated steel sheets and electrical steel also saw notable year-on-year growth.Driven by these factors profitability in the steel industry has recovered. According to statistics from the CISA in 2025 the cumulative operating revenue of key surveyed enterprises reached RMB 6.1 trillion a year-on- year decrease of 3.1%. Operating costs totaled RMB 5.7 trillion a year-on-year decrease of 4.5%. Total profit was RMB 115.1 billion a year-on-year increase of 140%. The average profit margin was 1.9% up 1.13 percentage points year-on-year.In general China’s economy enjoys a solid foundation diverse competitive strengths strong resilience and enormous potential. The supporting conditions and fundamental trend of its long-term positive development remain unchanged. As the first year of the 15th Five-Year Plan period 2026 will see the iron and steel industry further implement three major renovation initiatives: quality improvement and product innovation energy and carbon efficiency enhancement and digital and intelligent transformation. The industry’s supply-demand pattern is expected to improve over the long term.On the supply side policies continue to be implemented to further promote capacity reduction quality improvement and efficiency enhancement in the steel industry. In early 2025 the Ministry of Industry and Information Technology of the People’s Republic of China (MIIT) issued the Steel Industry Standard Conditions (2025 Edition). In April 2026 MIIT published the first list of enterprises that meet the Steel Industry Standard Conditions (2025 Edition) which provides a strong support for further promoting the high-quality development of the industry and implementing categorized and graded management and control. In September 2025 five departments including the MIIT issued the Work Plan for Stabilizing Growth in the Steel Industry (2025-2026) focusing on “maintaining steady growth “preventing ‘involutionary’ vicious competition” and proposed to promote effective improvement in quality and reasonable growth in quantity with an average annual growth rate of industrial added value of about 4%. In December 2025 the National Development and Reform 11Beijing Shougang Co. Ltd. Annual Report 2025 Commission’s document Vigorously Promoting the Optimization and Upgrading of Traditional Industries clarified that during the 15th Five-Year Plan period China will continue to regulate crude steel output strictly prohibit the unauthorized addition of new production capacity and encourage the survival of the fittest. The above policies will continue to drive the steel industry’s development toward reduced output and improved quality charting a clear path for the industry’s structural adjustment and high-quality development.On the demand side new quality demands continue to be released and market opportunities in downstream green and high-end sectors are rapidly emerging. Against the backdrop of China’s in-depth advancement of the“carbon peaking and carbon neutrality” goals and the accelerated development of the new electricity system the iron and steel industry has seen distinct growth opportunities in power grid upgrades and renewable energy facilities such as wind power and photovoltaic projects. Concurrently the implementation of the EU Carbon Border Adjustment Mechanism (CBAM) and the integration of the steel sector into China’s national carbon market compliance framework are driving steady growth in demand for green and low-carbon products. Meanwhile new quality productive forces centered on high-end manufacturing continue to spur incremental demand for high-grade steel products with rapid advancements in new energy vehicles the low- altitude economy and the artificial intelligence sectors significantly boosting consumption of high-strength automotive steel and electrical steel. Furthermore the 2026 Government Work Report has allocated RMB 250 billion in ultra-long special treasury bonds to support the trade-in of old consumer goods promoting the expansion and upgrading of commodity consumption. This initiative will further stimulate demand for high- performance lightweight and long-service-life steel in home appliances mechanical equipment and other fields thereby creating greater room for structural upgrading and value enhancement in the iron and steel industry.III. Analysis of core competitiveness 1. Leading level of technology The Company adheres to the innovation driven approach and promotes technological innovation as its primary competitive advantage and continuously applies its technological achievements to high-end product development efficient production and manufacturing green and low-carbon manufacturing and other fields.Beijing Shougang Co. Ltd. and its subsidiaries Jingtang Co. Zhixin Co. and Cold-R Co. are all high-tech enterprises and advanced manufacturing enterprises. During the reporting period the Company was awarded the 4th Beijing Municipal People's Government Quality Award. Zhixin Co. was awarded the 5th China Quality Award Nomination Award and was listed on the Global Unicorn Index 2025 released by Hurun Research Institute and Jingtang Co. was honored as an "Advanced Unit in Scientific and Technological Work of China's Iron and Steel Industry During the 14th Five-Year Plan Period". The Company integrates internal and external resources relying on the "one institute multiple centers" R&D system the Company carries out in-depth technical research projects optimize expert workstations and solidify external cooperation platforms. The incubation and value creation of new products technologies and processes are accelerating and scientific and technological achievements are emerging in rapid succession. Major achievements during the reporting period: Patents: During the reporting period the Company was granted 469 patents including 206 invention patents. The cumulative number of patents granted reached 4261 including 1583 invention patents.Standards: The Company participated in the formulation and publication of 46 international national industry and group standards and took the lead in formulating 8 of these standards.Science and technology awards: The Company has won numerous awards for advanced process manufacturing technology and pollutant treatment. Among them the project Development and Application of High-Performance Electrical Steel for New-Generation Drive Motors won the First Prize of the Hebei Provincial Science and Technology Progress Award. Two other achievements including the Development and Application of Technologies for Advanced Purification of Multiple Pollutants and Sulfur Resource Utilization received the First Prize of Metallurgical Science and Technology Award. 2. High-end products The Company adheres to the development strategy of continuously leading the way in electrical steel refining and strengthening automotive panels and breaking through the high-end of tin plated (chromium plated) plate. It continuously increases the proportion of strategic and key products promoting both product quality and efficiency improvement. During the reporting period the total output of the three major strategic products (electrical steel automotive panels and tinned (chrome) panels) reached 7.825 million tons representing a year-on-year increase of approximately 11%.Production of electrical steel increased by approximately 25% year-on-year. The output of high magnetic 12Beijing Shougang Co. Ltd. Annual Report 2025 induction oriented electrical steel increased by approximately 8% year-on-year and the ultra-thin specification of high magnetic induction oriented electrical steel of 0.20mm and below continues to maintain the leading sales volume in China. The product structure of non-oriented electrical steel has been continuously optimized.The output of high-grade non-oriented electrical steel rose by approximately 17% year-on-year with production of products for new energy vehicles increasing by around 28% year-on-year. Stable supply has been provided to the world’s and China’s top 10 best-selling new energy vehicle manufacturers and one out of every three new energy vehicles in China is equipped with the “Shougang Core”.Production of automotive panels increased by approximately 6% year-on-year. Product structure has been further optimized. Output of galvanized steel high? strength steel and outer plates rose by approximately 8% 19% and 9% year-on-year respectively. Output of flagship products has grown substantially. Production of zinc-aluminum-magnesium and aluminum-silicon products increased by around 39% and 12% year-on-year.Meanwhile 2200MPa? grade hot-formed steel and high? strength high? formability automotive outer plates are now capable of mass supply. Customer structure has been further upgraded. Supply volume of products for new energy vehicles increased by roughly 34% year-on-year and low? carbon automotive steel products have been adopted at scale by leading automakers.Production of tin-plated (chromium-plated) plates remained unchanged year-on-year. The Company’s high-end manufacturing capacity has been further enhanced. The supply volume of Drawn and Ironed (DI) steel increased by 25% year-on-year and that of sulfur-resistant products rose by 81% year-on-year with the application scale of high-end products steadily expanding among leading domestic and international customers.By giving full play to its advantages in technology equipment and management the Company has made new progress in developing medium and heavy plate into its fourth strategic product. During the reporting period considerable improvements were achieved in the structural adjustment manufacturing capacity enhancement and new channel development of medium and heavy plate products. Steel output for wind power saw a year-on-year increase of approximately 18% with the share of steel for offshore wind power reaching an all-time high. Output of high-grade pipeline steel rose by around 10% year-on-year while vessel steel output grew by roughly 2% year-on-year. The Company developed Q690 variable-thickness steel plates which have been mass-applied to crane legs and other components effectively cutting down welding seams and enhancing both safety and lightweight performance. 3. Green and low-carbon As the world's first steel enterprise to achieve full process ultra-low emissions the Company has deeply promoted ultra-low emission governance and maintained an A-level environmental performance evaluation in Hebei Province. The Company adheres to the high-quality development path of green and low-carbon and actively promotes the practice of ultra-high energy efficiency and carbon reduction technologies in line with national low-carbon strategies and customers’ decarbonization needs. In 2024 it was honored as one of the first batch of “Dual Carbon Best Practice Energy Efficiency Benchmark Demonstration Plant” by the CISA.During the reporting period the Company implemented its low-carbon action plan advanced high-quality steel projects with near-zero carbon emissions jointly built a green ecosystem chain with suppliers and customers and pushed forward the development of a zero-waste group. The resource utilization efficiency of general industrial solid waste and hazardous waste has been remarkably improved. The Company successfully issued RMB 500 million of green technology innovation corporate bonds demonstrating the market's confidence in Shougang Stock's achievements in green development and its long-term comprehensive value. It has been awarded the "Low-carbon Supplier" certification by the Automotive Industry Energy Conservation and Green Development Evaluation Center and named a "Leading Enterprise for A-level Environmental Performance in Hebei Province". Qiangang Co. was recognized as an innovation project under the 14th Five-Year Plan by the China Iron and CISA. Jingtang Co. became the first enterprise in the industry to win the title of "Energy Efficiency Leader" for the pelletizing process and also received the "Water Efficiency Leader" title. In addition the Company passed the acceptance inspection of the national pilot program for circular economy standardization.The EPD for eight products including the Company’s color-coated steel strips has been successfully released achieving full EPD coverage across major typical product categories. 4. Intelligent manufacturing The Company has established a cross-region multi-base consistent integrated production and sales collaborative management platform empowers high-quality development with digital transformation makes full use of the strategic opportunities brought by new-generation information technologies such as big data cloud computing artificial intelligence 5G etc. and carries out in-depth construction of intelligent 13Beijing Shougang Co. Ltd. Annual Report 2025 manufacturing projects which has made great progress in terms of efficiency and benefits products and services management and control system and prevention and control capabilities and has constructed a solid foundation for high-quality development. The digitization rate of the production equipment of the Company exceeds 91% the number of “one-button control” processes reaches 51 242 sets of industrial robots are applied 27 unmanned intelligent warehouses are constructed the digital workforce platform is established by applying the RPA (Robotic Process Automation) technology and 26 use cases of process robots are constructed. The AI large model platform has been launched. Leveraging open-source models the Company has independently developed a vertical large model tailored for the steelmaking process which has significantly boosted the efficiency of its business operations.During the reporting period AI-Driven Intelligent Whole-Process Control of Steel Quality by Shougang Stock was selected as one of the Top 10 Benchmark Applications of Beijing Digital Economy at the Global Digital Economy Conference. Cold-R Co. was included in the 13th batch of Global Lighthouse Factories by the World Economic Forum becoming the 3rd Lighthouse Factory in China’s steel industry and the 7th in the global steel industry. With its achievements in building a data-driven “One Core Four Levels Multiple Dimensions” intelligent steel plant Jingtang Co. was recognized as a National Benchmark Enterprise for Intelligent Manufacturing. In addition both Cold-R Co. and Jingtang Co. were selected into the first batch of Excellence- level Intelligent Factories by the MIIT. 5. Supply chain security The Company is the only platform for the development and integration of the steel and upstream iron ore resources industry of Shougang Group the controlling shareholder in China. The supply of iron ore coke and coal resources for production is guaranteed to be safe. In terms of iron ore Shougang Group has an annual production capacity of approximately 30 million tons of iron ore concentrate at home and abroad which effectively guarantees the Company’s iron ore resource supply. In terms of coke Qiangang Co.'s coke is mainly supplied by Qian'an Zhonghua Coal Chemical Co. Ltd. a joint venture between Shougang Group and Kailuan Group while Jingtang Co.'s coke is supplied by Tangshan Shougang Jingtang Xishan Coking Co. Ltd. a joint venture between Jingtang Co. and Shanxi Coking Coal. The supply of coke resources is strongly guaranteed. In terms of coal the Company has signed long-term agreements with state-owned large coal groups and Shougang Fushan Resources Group Co. Ltd. a holding subsidiary of Shougang Group also provides the Company with some high-quality coking coal resources providing a strong coal supply guarantee. 6. “Technology + Service” marketing The Company takes the customer as the center to deepen the marketing strategy of "technology + service" and creates Shougang service to enhance the brand value. The Company continues to improve the service system enhance service efficiency strengthen the construction of a new energy vehicle service team and meet customers' ever-increasing requirements for quality delivery research and development service and technical marketing. During the reporting period EVI supply volume increased by approximately 17% year-on-year. By intensifying product R&D and upgrading manufacturing capabilities the Company has maintained the competitive advantages of key products and expanded the leading edge of strategic products.The Company has formed a centralized unified rapid-response and efficient marketing management network with the marketing center as the core integrating 5 regional steel trading subsidiaries and 11 processing centers effectively ensuring stable supply to downstream customers. It has continuously optimized large customer service teams to consolidate and improve the channel structure that combines leading enterprises in the industry chain with high-quality small and medium-sized customers. Cultivate comparative advantages in industrial chain cooperation carry out comprehensive multi-level and high-quality cooperation with key customers in the industry further enhance cooperation depth enhance cooperation viscosity and stabilize market share.During the reporting period the Company successfully held the Automotive Sheet Steel Low-carbon Technology Forum the Development Symposium on Medium and Heavy Plate Steel for Energy Applications and the Zhongshan Green Guard Low-Carbon Project Launch Conference. It carried out “Shougang Day” activities with 7 automakers and jointly built joint laboratories with 5 leading industry customers. The Company was honored with 54 awards in total including the “Green & Low-carbon Excellent Supplier” by GAC Honda the “Excellent Supplier” by Chery and Seres and the “Supply Guarantee Pioneer Award” by Great Wall Motors. The recognition of Shougang’s “Manufacturing + Service” model has been continuously enhanced. The Company has signed a Memorandum of Understanding (MoU) on Strategic Cooperation for Green Steel with FAW-Volkswagen and Strategic Cooperation Agreements with Geely Group TBEA and INOVANCE. The parties will conduct in- 14Beijing Shougang Co. Ltd. Annual Report 2025 depth cooperation in the fields of green and low-carbon transition smart supply chain development new product development humanoid robots and the low-altitude economy. 7. Strengthening Enterprises with Talents The Company has fully advanced its strategy of strengthening the enterprise with talents established a multi-level training system covering all employees improved its talent promotion and appraisal mechanism and broadened career development channels for talents. A career development system for high potential talents throughout their entire life cycle has been established and solidly promoted the "four horizontal and three vertical" training system for all employees held training programs such as Deep Blue Special Training Camp and Future Craftsman Youth Training Camp strengthen talent empowerment and build a platform for cadres to improve and grow; Optimize the top-level design of talent development channels strengthen the performance- oriented and practical orientation strengthen the training and development of high-level personnel and steadily increase the proportion of high-tech and high skilled talents.During the reporting period the Company launched a new round of equity incentives granting stock options and restricted shares to eligible middle and senior management personnel and core backbone employees. By improving the long-term incentive mechanism the Company has stimulated the entrepreneurship and vitality of the core team providing strong support for the strategy of strengthening the enterprise with talents and promoting the long-term and steady development of the Company.During the reporting period four employees of the Company were conferred the title of 2025 Beijing Model Worker and one employee won the Second Prize for Frontline Workers' Scientific and Technological Achievements of the Metallurgical Science and Technology Award. The Company has continued to strengthen team building and technological innovation. Among its achievements one project won the First Prize at both the 2025 Beijing Innovation Methods Competition and the 2025 China Innovation Methods Competition. Two innovation studios were recognized as Beijing Municipal Innovation Studios. Zhixin Co. was honored as the 2025 Model Collective of Beijing.IV. Analysis of principal business 1. Overview (1) Completion status of the Company's main business indicators During the reporting period the Company's operating revenue was RMB 102.918 billion a year-on-year decrease of 5.11%. The total profit was RMB 1.29 billion a year-on-year increase of 71.17%. The net profit attributable to shareholders of the listed company was RMB 996 million a year-on-year increase of 107.68%.Earnings per share was RMB 0.1284 a year-on-year increase of RMB 0.0666. The total assets were RMB 124.934 billion and the equity attributable to the shareholders of the listed company was RMB 50.331 billion. (2) Highlights of the Company In 2025 the Company's operation and production were stable with significant achievements in product mix technological innovation green and low-carbon intelligent manufacturing internal cost reduction and ESG management.* Continuous optimization of product structure The Company closely monitors changes in downstream demand focuses on efficiency and continuously promotes product structure optimization and upgrading striving to develop medium and heavy plate into its fourth strategic product.During the reporting period the total production of electrical steel automotive steel tin (chromium) plate and the fourth strategic product (medium and heavy plate) reached approximately 10.52 million tons accounting for about 46% of the Company's total steel production a year-on-year increase of 4.2 percentage points.* Comprehensive promotion of technological innovation The Company is led by technological innovation focusing on forging key core technology strengths. It continues to make new breakthroughs in new product research and development key process technologies and promotes the transformation of enterprise development quality towards higher efficiency resilience and sustainability. During the reporting period five first products and two first processes were completed. The Company has continuously promoted 16 localization projects for import substitution.In terms of new product research and development the Company has launched 5 new products including 2 oriented electrical steels 2 non-oriented electrical steels and 1 high-strength & high-ductility automotive outer panel steel. Among them the grain-oriented electrical steel products for high-efficiency transformers have 15Beijing Shougang Co. Ltd. Annual Report 2025 achieved a breakthrough in resolving the long-standing industry technical bottleneck of reconciling "low core loss" and "low noise" providing core material support for the construction of a new type of power grid featuring high efficiency energy conservation and environmental protection. The newly launched non-oriented electrical steel products are applied to motors for new energy vehicles and humanoid robots respectively precisely meeting the requirements of high rotational speed and high efficiency for new energy vehicle motors as well as the design demands of high torque and high efficiency for humanoid robot motors delivering leading material solutions for improving motor efficiency and energy efficiency levels. The launch of a high-strength high- formability automotive outer panel reduces part thickness while significantly enhancing dent resistance leading to the leapfrogging upgrade of steel for automotive outer body panels toward lightweight high-quality and green development.In terms of key process technologies the Company has independently developed low-carbon & high- efficiency converter steelmaking technology with a high scrap ratio overcoming core bottlenecks including difficult scrap melting and continuous casting under ultra-high scrap ratios. The converter has achieved multi- heat continuous casting with a high scrap ratio resulting in a carbon-emission reduction rate of over 40%. Its products include high-end varieties such as automotive outer panel steel tinplate and wind power steel leveraging Shougang’s expertise to reduce carbon emissions in the integrated steelmaking process.* Green and low-carbon benchmark leading The Company has actively implemented the Shougang Group Low-carbon Action Plan advanced the development of a low-carbon management system built a green low-carbon ecological chain conducted the production and marketing of low-carbon products and steadily forged differentiated competitive advantages for its products.Promote the construction of a low-carbon management system. The Company has set up a specialized organization to promote low-carbon management and established a management mechanism featuring dynamic tracking regular summaries and evaluation. Following the "one headquarters multiple bases" model it has developed a smart carbon management platform that supports the visualization and traceability of carbon emission data at all production bases. Its Life Cycle Assessment (LCA) system has been granted a Verification Statement by DNV (Det Norske Veritas) a third-party certification body which lays a solid foundation for the Company in fulfilling compliance obligations in the national carbon trading market submitting CBAM data designing low-carbon products and other related work.Create a green low-carbon and ecological chain. During the reporting period the Company promoted carbon reduction initiatives among key suppliers driving 38 suppliers to carry out carbon footprint certification for key materials and establishing an upstream material real-scenario data factor library. The Company built a closed-loop circular system of "production-consumption-regeneration" with Zhongshan Green Guard launched a low-carbon project with 40% traceable recycled materials and signed low-carbon emission steel cooperation agreements with six automakers including FAW-Volkswagen NIO and Volvo realizing cross-sector collaborative carbon reduction and contributing to green and sustainable development.Upgrading production capacity for low-carbon products. The Company advanced the construction of a near-zero carbon emission high-quality steel project. During the reporting period purchased green electricity accounted for 41% of the total purchased electricity laying a foundation for manufacturing products with more substantial carbon reduction. The Company continued to promote the application of high-proportion pellet smelting technology in blast furnaces achieving a high scrap ratio continuous casting of multiple heats in the converter process and cutting carbon dioxide emissions per ton of steel by more than 40% providing critical support for significant carbon emission reduction in the long-process steelmaking. The Company steadily promoted carbon reduction benchmark certification and low-carbon technology certification for products such as automotive steel sheets and electrical steel formulated Shougang’s green and low-carbon product pricing system officially launched the “SOGREECO” series of green and low-carbon trademarks and took the industry lead in issuing a series of enterprise standards for Green and Low-carbon Cold-rolled and Hot-dip Coated Steel Sheets and Strips as well as a pricing system for low-carbon automotive steel sheets.* Digital intelligence empowerment continues to deepen The Company promotes the deep integration of digitalization and industrialization and drives management improvement manufacturing upgrading and cost compression and reduction by digitalization and informationization. The Digital and Intelligent Transformation Center has vigorously advanced the Action Plan for Digital Transformation of Shougang Group (2024–2026) strengthened manufacturing collaboration and promoted digital transformation and the improvement of intelligent manufacturing capabilities. 16Beijing Shougang Co. Ltd. Annual Report 2025 During the reporting period in accordance with the plan for building a digital and intelligent technical talent team the Company established a digital and intelligent talent pool and completed the review and appointment of the first batch of digital and intelligent technical talents. The Company’s AI large model platform was officially launched featuring a four-tier architecture of “computing power + models + platform + scenarios”. The local deployment of the DeepSeek large model was completed and 10 AI application scenarios including intelligent customer service and a regulatory expert system were developed.* Continuous improvement in internal cost reduction The Company intensified benchmarking with leading enterprises deeply explored the potential of cost reduction in the whole process and elements established a sustainable cost reduction system and advanced key cost reduction tasks on a rolling basis resulting in lower costs for each production process.In terms of consumption and cost reduction the Company has broken down process boundaries and implemented iron-steel synergy to reduce hot metal temperature drop. During the reporting period the hot metal temperature drop of Qiangang Co. continued to decrease year-on-year reaching an industry-leading level.The operation of the integrated pre-iron platform was strengthened. Qiangang Co. and Jingtang Co. adhered to cost-effective material utilization and realized resource synergy and mutual backup. Focusing on key indicators such as coal blending & ore blending costs and iron & steel material consumption the costs of iron and steel processes have been continuously reduced.In terms of cost reduction through technological innovation the Company continuously promoted alloy substitution and optimized product material design developed an intelligent control model for alloying and steadily reduced alloy consumption. It also advanced whole-process metal loss management with process control accuracy and product yield rate improved year-on-year.In terms of cost reduction through synergy a production-supply synergy mechanism was established to carry out all-around and all-factor material cost reduction. Multi-department collaboration was implemented; guided by the principle of "technical standard adaptation + optimal cost" technical standards were scientifically adjusted and suitable resources were accurately selected resulting in a year-on-year decrease in the procurement costs of raw materials fuels auxiliary materials and spare parts. Equipment cost control was strengthened and operating costs were reduced through measures such as negotiated fee reduction localization substitution and independent maintenance. The Company firmly pursued ultimate energy efficiency coordinated energy balance and structural optimization and continuously promoted the efficient recycling of solid waste resources.* Significant improvement of ESG management system The Company highly attaches importance to ESG management and has established an ESG governance structure consisting of the Board the Strategy Risk ESG and Compliance Management Committee and the ESG Working Group and has continued to improve ESG management through the formulation of ESG-related systems ESG training and other initiatives.During the reporting period the Company achieved a notable improvement in its ESG ratings. Its ESG rating from Sino-Securities Index Information Service (Shanghai) Co. Ltd. was upgraded to AAA the highest rating level in the industry. Meanwhile its ESG scores from S&P Global and FTSE Russell rose substantially with its overall rating standing among the industry’s leading ranks. This reflects the capital market’s recognition of the Company’s performance in environmental protection social responsibility corporate governance and other areas further enhancing its brand value. The Company was selected into the 2025 Best Practice Cases for Sustainable Development of Listed Companies by the China Association for Public Companies the "Excellent Practice Cases of Green and Low-carbon Development of Enterprises in 2025" by the China Enterprise Confederation and the 2025 Excellent Cases of Corporate Social Responsibility in Beijing. It was also shortlisted as one of the 2025 Top 100 A? Share Listed Companies with the Most Improved ESG Ratings by Sino? Securities Index Information Service (Shanghai) Co. Ltd. In addition the Company was conferred the 2025 China ESG Golden Responsibility Award for Best Social Responsibility by Sina Finance the Top 100 of the 3rd China Reform Cup ESG Golden Bull Award the 19th China Listed Companies ESG Top 100 Award and the 2025 Beijing Top 100 Listed Companies Award. 2. Revenue and cost (1) Composition of operating revenue Unit: RMB Yuan 2025 2024 Year-on- 17Beijing Shougang Co. Ltd. Annual Report 2025 Amount Proportion Proportion of yearof operating Amount operating changes Total operating revenue 102918417572.91 100% 108461993386.29 100% -5.11% According to industries Metallurgy 102918417572.91 100.00% 108461993386.29 100.00% -5.11% According to products Industrial pure iron 435717597.41 0.42% 329725948.36 0.30% 32.15% Hot-rolled steel 40724797478.10 39.57% 43490893729.26 40.10% -6.36% Cold-rolled steel 57607711298.23 55.97% 59429232318.97 54.79% -3.07% Other steels 1082604710.31 1.05% 1774661698.81 1.64% -39.00% Other businesses 3067586488.86 2.98% 3437479690.89 3.17% -10.76% According to regions Domestic 94547407271.67 91.87% 100438451320.36 92.60% -5.87% Overseas 8371010301.24 8.13% 8023542065.93 7.40% 4.33% Distribution model Direct selling 96549207346.32 93.81% 101914039449.62 93.96% -5.26% Sale by proxy 6369210226.59 6.19% 6547953936.67 6.04% -2.73% (2) Industries products or regions that generated operating revenue or operating profit that over 10% of the total operating revenue or operating profit of the Company √ Applicable □ Non-applicable Unit: RMB Yuan Gross Year-on-year Year-on-year Year-on-year Operating revenue Operating costs margi change of change of n operating operating change of revenue costs gross margin According to industries Metallurgy 99850831084.05 94813774812.10 5.04% -4.93% -6.01% 1.09% According to products Industrial pure iron 435717597.41 416946095.88 4.31% 32.15% 29.64% 1.85% Hot-rolled steel 40724797478.10 38858463234.24 4.58% -6.36% -8.62% 2.36% Cold-rolled steel 57607711298.23 54526271485.91 5.35% -3.07% -3.83% 0.75% Other steels 1082604710.31 1012093996.07 6.51% -39.00% -24.29% -18.16% According to regions Domestic 91479820782.81 86807508253.25 5.11% -5.69% -6.83% 1.16% Overseas 8371010301.24 8006266558.85 4.36% 4.33% 3.87% 0.43% Distribution model Direct selling 93481620857.46 88624414662.42 5.20% -5.07% -6.23% 1.17% Sale by proxy 6369210226.59 6189360149.68 2.82% -2.73% -2.85% 0.12% The adjusted principal business data according to the financial report of the Company under the circumstances that the statistical ranges of the Company’s principal business data changed during the reporting period.□Applicable √ Non-applicable (3) Whether revenue from sales of goods is more than from render of services √ YES □ NO Industry Item Unit 2025 2024 Year-on-yearchanges Sales Ton 22671834 23538522 -3.68% Output Ton 22822442 23297612 -2.04% Metallurgy Storage Ton 1069555 1065385 0.39% Explanation in the year-on-year change more than 30% based on above data □Applicable √ Non-applicable 18Beijing Shougang Co. Ltd. Annual Report 2025 (4) Fulfillment of the singed significant sales contracts and purchase contracts during the reporting period □Applicable √ Non-applicable (5) Composition of costs of sales Industry Unit: RMB Yuan 2025 2024 Year-on- Industry Item Amount Proportion of Proportion of year operating costs Amount operating costs changes Metallurgy Raw materials 50402010080.86 53.16% 52979125487.43 52.52% -4.86% Metallurgy Fuels 17654782623.53 18.62% 22226802554.51 22.03% -20.57% Metallurgy Power cost 2908339016.04 3.07% 3061580337.98 3.03% -5.01% Metallurgy Employeebenefits 3306838401.03 3.49% 3086012767.45 3.06% 7.16% Metallurgy Depreciation 7703998087.00 8.13% 7608190471.05 7.54% 1.26% Metallurgy Manufacturingcost 12837806603.64 13.54% 11917325428.67 11.81% 7.72% Total 94813774812.10 100.00% 100879037047.09 100.00% (6) Whether the scope of consolidation changes during the reporting period √ YES □ NO Business combinations involving entities under common control * Business combinations involving entities under common control occurred during the period Unit: RMB Yuan Interest Basis for Revenue of the Net profit of the percentage constituting a Basis for acquiree from acquiree from Name of obtained business the beginning of Revenue of the Net profit of the the in the combination Combination determinin the beginning of g the the combination the combination acquiree for the acquiree for the acquiree business under date combinatio period to the period to the comparative comparative combinatio common n date combination combination period period n control date date (in RMB tenthousand) Obtained Both parties actual were under control on the control of the date of Hebei Shougang industrial Shougang Group Co. and Jingtang 100.00% Ltd. before 25 December2025 commercial 898185414.93 8027162.83 635582699.08 8325029.51Machinery and after the change Co. Ltd. combination registration and such and the control is not date of temporary. equity delivery.During the current period Jingtang Co. acquired 100% equity of Hebei Shougang Jingtang Machinery Co. Ltd. through business combinations involving entities under common control. In accordance with the Accounting Standards for Business Enterprises and relevant provisions the Company and Jingtang Co. have retrospectively adjusted the opening data of the consolidated financial statements and relevant data for the comparative period.* Cost of combination Unit: RMB Yuan Cost of combination Hebei Shougang Jingtang Machinery Co. Ltd.--Cash 150366403.60 --Book value of non-cash assets --Book value of debts issued or assumed --Nominal value of equity securities issued 19Beijing Shougang Co. Ltd. Annual Report 2025 --Contingent consideration Total cost of combination * Book values of assets and liabilities of the acquiree on the combination date Hebei Shougang Jingtang Machinery Co. Ltd.Item Combination date End of previous year Assets: Cash at bank and on hand 69327577.54 49363845.95 Receivables 101484835.80 90228620.55 Summary of other current asset items 15449037.88 36910278.01 Summary of non-current asset items 71113671.49 64924972.12 Liabilities: Accounts payable 90609890.46 65723717.27 Employee benefits payable 2133284.69 1944360.82 Summary of other current liability items 17641244.31 33014558.47 Summary of non-current liability items Net assets 146990703.25 140745080.07 Less: Non-controlling interests Net assets acquired 146990703.25 140745080.07 (7) Significant adjustments or changes in businesses products or services during the reporting period □ Applicable √ Non-applicable (8) Major clients and suppliers Major clients of the Company Total top five clients in sales (RMB Yuan) 17143107575.07 Proportion of total sales for the top 5 clients in total annual sales 16.66% Proportion of the sales from related parties in total annual sales among the top five clients 1.89% Information for top five clients of the Company No. Name Sales (RMB Yuan) Proportion of total annualsales 1 Client A 7709404303.14 7.49% 2 Client B 3468144983.72 3.37% 3 Client C 2069006705.09 2.01% 4 Client D 1956445560.61 1.90% 5 Client E 1940106022.51 1.89% Total -- 17143107575.07 16.66% Other information for the major customers of the Company □ Applicable √ Non-applicable □ Applicable √ Non-applicable Major suppliers Total purchase amount from top five suppliers (RMB) 67290059387.35 Proportion of total annual purchase amount for top five suppliers 66.99% Proportion of the purchase from related parties in total annual purchase among the top five suppliers 62.36% Information for the top five suppliers of the Company No. Name Procurement (RMB Yuan) Proportion of total annualprocurement 1 Supplier A 46 245760919.47 46.04 2 Supplier B 11608336887.70 11.56% 3 Supplier C 5303784004.75 5.28% 4 Supplier D 3073 245093.31 3.06% 20Beijing Shougang Co. Ltd. Annual Report 2025 5 Supplier E 1058932482.12 1.05% Total -- 67290059387.35 66.99% Other information for the major suppliers of the Company □ Applicable √ Non-applicable During the reporting period revenue from the Company’s trading operations accounted for more than 10% of total operating revenue.□ Applicable √ Non-applicable 3. Expenses Unit: RMB Yuan 2025 2024 Year-on-year Notes of materialchanges changes Selling expenses 245806944.27 234747148.62 4.71% General and administrative 1320732685.70 1284458666.57 2.82% expenses This is mainly driven by the reduction of interest- Financial expenses 737756998.85 1101077928.47 -33.00% bearing liabilities and the decline in interest rates in 2025. R&D expenses 556830229.55 532698755.48 4.53% 4. Research and development investment □Applicable □Non-applicable Name of main R&D Project objective Progress of Goals to be The expected impact on the company's project the project achieved future development Aiming at the large errors in traditional loss The development of new technologies calculation for electrical steel and motor can not only improve motor design cores this project carries out research on efficiency by constructing a relevant Research on the loss prediction of electrical steel sheets model of computation helping Loss under service conditions and its application customers shorten the new product Prediction in motor iron loss calculation. It intends to development cycle and reduce costs and tackle three key technical issues: the Developing but also effectively promote the Application construction of a broadband calculation application and popularization of of Electrical model for motor core loss loss calculation R&D stage new technologies Shougang electrical steel products in Steel under considering the influences of processing the motor sector creating economic Service stress and excitation harmonics and the benefits for the Company. This aligns Conditions secondary development of commercial with the social development needs ofelectromagnetic calculation software. This energy conservation and environmental research will support the design of motor protection and can further enhance cores and enhance the operational the Company's product efficiency of motors. competitiveness and industry influence.Magnetic This project identifies the performance Property enhancement approaches of benchmark The development of new technologies Enhanceme products through testing and reverse fills the gap in non-oriented electrical nt of High- engineering and further optimizes product steel with high magnetic induction and Performanc performance via microstructure and texture Developing low core loss enhances Shougang’s e Extremely optimization. By establishing distinct R&D stage new market influence in extremely thin non- Thin Non- performance advantages over the technologies oriented electrical steel and provides Oriented benchmark products it supports the market downstream users with domestic Electrical promotion of Shougang's extremely thin substitution solutions as well as stable- Steel Strips strip products. performance product supply.Research on This research carries out a targeted The development of new technologies the investigation on the characteristics of clarifies the influence mechanism of Influence microstructure texture and inclusions in Developing core heat treatment processes on Mechanism each process of the entire production flow R&D stage newtechnologies microstructure and properties so as toof Heat for mainstream high? grade new energy provide theoretical support for process Treatment materials as well as their evolution laws selection in the initial stage of product 21Beijing Shougang Co. Ltd. Annual Report 2025 Process on during processing so as to provide a research and development.the reference basis for process adjustment Microstruct defect analysis and new product ure and development in on-site production.Properties of New Energy High-Grade Materials Research on The development of new technologies High- fills the technological gap of Shougang Efficiency This research is carried out on the high- in this product series establishes a Heat- efficiency scribing process of Shougang’s technical reserve for production line Resistant grain-oriented electrical steel to rapidly Developing construction and mass production Scribing achieve the research and development of R&D stage new elevates Shougang’s brand image and Technology grain-oriented silicon steel with heat- technologies market influence and contributes to for Grain- resistant refined magnetic domains. Shougang’s strength in the upgrading of Oriented energy efficiency standards and the Silicon Steel green development of the powerindustry.The research of this project is designed to achieve the following goals: 1. By studying The formation mechanism of residual the formation mechanism and control stress during continuous cooling and technology of residual stress defects the relaxation mechanism of residual including strip warpage and lateral bending stress during skin passing revealed in during the temper rolling process the this project have laid an important Research on residual stress control performance of hot- theoretical foundation for Residual rolled high-strength strip produced via the fundamentally solving the long-standing Stress hot rolling + temper rolling process route problem of impaired service Control will be guaranteed. 2. By studying the performance of materials and Technology formation mechanism and control Developing components caused by residual stress for Post- technology of post-hot-rolling residual new in the manufacturing industry. This Rolling stress the residual stress control level of Completio technologies project has developed a series of Finishing hot-rolled high-strength coils will be n and residual stress control technologies Treatment improved and the temper rolling process processes based on reconstructing plastic of Hot- will be gradually phased out. This will not behavior during microstructural Rolled High- only eliminate the risk of new residual stress transformation which has realized the Strength defects caused by temper rolling but also controllable stress distribution in the Steel cut down production costs. 3. The variation process of microstructural evolution. It pattern and corresponding relationship of provides a new method to break residual stress in hot-rolled high-strength through the residual stress bottleneck products between the factory delivery stage restricting the improvement of and the end-user application stage will be manufacturing capacity and possesses explored to provide technical support for significant application value.meeting users’ higher quality requirements.At present China is vigorously promoting the sustainable development of the "green metallurgy" innovative industry. In the field of R&D for new steel grades and their Developme application technologies the main nt of challenges lie in molten steel purification Automotive steel sheets are mainly Cleaning composition regulation and product supplied to renowned automakers Technology performance enhancement. The production including BMW Great Wall Motors and of high-purity steel is closely associated with Completio Developing Geely. Improving the quality offor Automotive inclusion control during smelting which n new automotive steel sheet products helps Steel via constitutes a major technical issue that technologies boost the Company’s market share and social reputation in the automotive Magnesium urgently needs to be solved. In China Treatment research on magnesium (Mg) treatment steel sheet field and elevates the technology for molten steel is still mainly at Company’s overall corporate image.the laboratory and basic theoretical stage with only a small number of industrial applications in wheel steel. To reduce the oxygen content and inclusion count in 22Beijing Shougang Co. Ltd. Annual Report 2025 automotive steel during refining and develop green low-carbon steel products there is an urgent need to conduct research on technologies for controlling oxygen content and inclusions in automotive steel.Improving the qualified rate of pellet compressive strength and reducing its non- uniformity are key problems to be solved for pellets produced by straight grate machines.This has significant research value and application potential for enhancing operational efficiency reducing carbon emissions and ensuring stable smooth This project optimizes and adjusts the operation. Firstly there is insufficient thermal system stabilizes the experience in producing high-basicity pellets production process of the belt roaster (R>1.0) at home and abroad. Secondly improves labor efficiency reduces fuel under the draft-dominated roasting system consumption and thereby cuts carbon Research on there is a large vertical heat deviation emissions. The technical achievements Thermal between the upper and lower layers which Developing of this project can be promoted and Technology leads to non-uniform pellet quality. Thirdly Completio new applied to other belt roaster productionBased on the current manual adjustment method n technologies lines within Shougang laying aIntelligent exhibits hysteresis and uncertainty leading and technical foundation for low-carbon Pellet to unstable production processes inferior processes and green smelting. Meanwhile it sets Control product quality and increased energy an exemplary and leading example for consumption. Therefore it is urgent to large-scale pellet production and high- conduct research on intelligent thermal proportion pellet burden application in optimization technology for straight-grate blast furnace smelting across China’s machine pellets. A pellet thermal process iron and steel industry yielding simulation model and a material-hot air remarkable social benefits.balance model shall be established to implement intelligent optimization and control of thermal systems for different production demands. This will not only help improve the overall product quality of straight grate machines but also reduce process energy consumption.Currently blackening occurs across all products—whether low-aluminum zinc- aluminum-magnesium or high-aluminum zinc-aluminum-magnesium—and is Research on particularly prevalent in high-aluminum Phase zinc-aluminum-magnesium products which Diagram directly affects customer trust and order Calculation intake. Firstly from a technical perspective Solidificatio there has been limited research both Resolving the blackening issue in high- n domestically and internationally on the aluminum zinc-aluminum-magnesium Microstruct impact of coating microstructure and Developing products will address the shortcomings ure and production processes on blackening defects. Completio new across the entire zinc-aluminum- Corrosion Secondly in terms of product applications technologies magnesium product line enhance Resistance domestic high-aluminum zinc-aluminum- n and Shougang’s market reputation for these of High- magnesium products are primarily used as processes products and play a significant role in Aluminum substrates for color-coated steel sheets the overall promotion of Shougang’s Zinc- with few orders for direct uncoated use. zinc-aluminum-magnesium brand.Aluminum- Therefore there is an urgent need to Magnesium research technical solutions to address Alloys blackening defects. By integrating factorssuch as magnesium content gas knife media and cooling rates analysis and technical exploration should be carried out to determine their impact on coating structure.Digital The research focuses on coarse and fine Trial Improving Develop the core technology of rolling model and adjustment thickness control thickness productio quality stability control of cold rolling mill with 23Beijing Shougang Co. Ltd. Annual Report 2025 intelligent compensation control inter-stand tension n independent intellectual property rights optimizatio control thickness-tension coordination and to improve the thickness control n research optimization control etc. The research precision and stability of the production on rolling applies advanced intelligent theories and process in order to achieve the stability of technologies in the field of data and purpose of improving product quality pickling algorithms to open up and explore the reducing the scrap rate and improving five-strand intelligent solution for thickness quality the operation rate so as to improve the rolling and control and realize the intelligence of market competitiveness of enterprises control quality control. and expand the market share of application products.Research on Through the research of selective oxidation surface mechanism of phosphorus-containing high- Through research on the mechanism of quality strength steel analyzing the causes of nodule formation on furnace rollers for improveme annealing furnace rolls tumor formulating phosphorus-containing high-strength nt of hot- galvanizing annealing process optimization steel the incidence of pre-galvanizing dip measures (including structural Trial scratch defects is reduced surface quality galvanized optimization) improving the galvanizing productio Boosting issues such as pre-galvanizing scratches phosphorus annealing furnace production of n productivity during the production of phosphorus- -containing phosphorus-containing high-strength steel containing high-strength steel in high- scratches before plating and improving galvanizing annealing furnaces are strength product quality at the same time to improved and the consistent mass steel outer achieve the purpose of stable production of production of phosphorus-containing plate phosphorus-containing high-strength steel high-strength steel is realized.in batch.Research and development investment 2025 2024 Proportion of changes Number of R&D staff 2139 2396 -10.73% Proportion of R&D staff 11.69% 13.49% -1.80% Educational background of R&D personnel Bachelor’s degree 1120 1263 -11.32% Master's degree 681 701 -2.85% Age structure of R&D personnel Below 30 74 134 -44.78% Aged 30-40 676 976 -30.74% Details about R&D investments: 2025 2024 Proportion of changes R&D investments (RMB Yuan) 4791578832.70 4892267703.14 -2.06% R&D investments as % of operating revenue 4.66% 4.51% 0.15% Capitalized R&D investments (RMB Yuan) 0 0 Capitalized R&D investments as % of total R&D investments 0 0 Reasons for any significant change in the composition of R&D personnel and the impact: □ Applicable √ Non-applicable Reasons for any significant year-on-year change in the percentage of R&D expense in operating revenue: □ Applicable √ Non-applicable Reasons for any sharp variation in the percentage of capitalized R&D expense and rationale: □ Applicable √ Non-applicable 5. Analysis of cash flow Unit: RMB Yuan Item 2025 2024 Year-on-year changes Cash inflow from operating activities 53352217058.34 50548820108.92 5.55% Cash outflow from operating activities 45215540008.61 44206598740.33 2.28% Net cash flows from operating activities 8136677049.73 6342221368.59 28.29% 24Beijing Shougang Co. Ltd. Annual Report 2025 Cash inflow from investing activities 96845685.58 42178265.53 129.61% Cash outflow from investing activities 542417257.96 260403483.18 108.30% Net cash flows from investing activities -445571572.38 -218225217.65 -104.18% Cash inflow from financing activities 25143230000.00 29100967580.39 -13.60% Cash outflow from financing activities 30789136719.85 35395303217.17 -13.01% Net cash flows from financing activities -5645906719.85 -6294335636.78 10.30% Net increase in cash and cash equivalents 2043638676.29 -168791378.34 1310.75% Main reasons for significant year-on-year changes in relevant data □Applicable □Non-applicable (1) The increase in cash inflows from investing activities was mainly attributable to the receipt of refunds of capital contributions from investees. (2) The increase in cash outflows from investing activities was mainly due to the increased payment for Jingtang Co.’s acquisition of 100% equity interest in Hebei Shougang Jingtang Machinery Co. Ltd. and the rise in cash expenditures for the purchase and construction of fixed assets and intangible assets. (3) The decrease in net cash flows from investing activities was mainly caused by Jingtang Co.’s acquisition of 100% equity interest in Hebei Shougang Jingtang Machinery Co. Ltd. (4) The increase in the net increase in cash and cash equivalents was mainly attributable to the growth in net cash flows from both operating activities and financing activities.□Applicable □Non-applicable During the reporting period net cash flow from operating activities was RMB 8.137 billion the net profit was RMB 1.075 billion and the difference was RMB 7.062 billion. The main reasons are: assets impairment provision and credit impairment losses of RMB 567 million depreciation and amortization of RMB 8.155 billion financial expenses of RMB 845 million a decrease in operating receivables (less: increase) of RMB -539 million an increase in operating payables (less: decrease) of RMB -2.537 billion a decrease in inventory (less: increase) of RMB 506 million an investment loss of RMB -45 million and RMB 110 million for others.V. Non-principal business analysis □Applicable √ Non-applicable VI. Assets and liabilities 1. Significant changes in the composition of assets Unit: RMB Yuan 31 December 2025 1 January 2025 Proportio Proporti Proportion Notes of Amount n of total Amount on of changes material assets total changes assets Cash at bank and on hand 10842460836.85 8.68% 8826637471.96 6.68% 2.00% Accounts receivable 1669376228.53 1.34% 1638506083.77 1.24% 0.10% Inventories 10329511689.20 8.27% 11407824092.03 8.64% -0.37% Long-term equity 2093849485.50 1.68% 2070713423.51 1.57% 0.11% investments Fixed assets 82509872123.34 66.04% 87165864980.07 66.01% 0.03% Construction in progress 2706288021.43 2.17% 3263187574.42 2.47% -0.30% 25Beijing Shougang Co. Ltd. Annual Report 2025 Right-of-use assets 458303069.01 0.37% 468243465.30 0.35% 0.02% Short-term borrowings 21445498282.76 17.17% 22251284791.74 16.85% 0.32% Contract liabilities 4529764861.53 3.63% 5101055378.93 3.86% -0.23% Long-term borrowings 7966470000.00 6.38% 11864070000.00 8.98% -2.60% Lease liabilities 463907672.86 0.37% 465190839.65 0.35% 0.02% Foreign assets account for a relatively high proportion: □Applicable √ Non-applicable 2. Assets and liabilities measured at fair value □Applicable □Non-applicable Unit: RMB Yuan Amount Fair value Accumulated Item Opening balance changes in the fair value Impairment of Amount of changes in accrual in the purchase sales in the Other changes Closing balanceperiod equity period in the periodperiod Financial assets Other equity instruments 268404638.58 3038382.23 271443020.81 investments Financing receivables 3626515941.48 -1498534715.77 2127981225.71 Other non- current financial 70218671.35 -44273694.51 25944976.84 assets Total 3965139251.41 -44273694.51 3038382.23 0.00 0.00 0.00 -1498534715.77 2425369223.36 Financial liabilities 0.00 0.00 Whether the Company's main asset measurement attributes have changed significantly during the reporting period □ YES √ NO 3. Major restricted assets at the end of the reporting period Unit: RMB Yuan Year-end Item Book balance Book value Type ofrestriction Restriction reason Cash at bank and on 45515135.17 45515135.17 Freeze All kinds of deposits frozen fundshand etc.Total 45515135.17 45515135.17 VII. Investment analysis 1. Overall situation □Applicable □Non-applicable Invested amount during the reporting Investment amount during the previous period (RMB Yuan) reporting period (RMB Yuan) Range of change 2878365636.543847317002.84-25.19% 2. Significant equity investment during the reporting period □Applicable □Non-applicable 3. Significant non-equity investment during the reporting period □Applicable□ Non-applicable Unit: RMB Yuan Whe Industr Accumu Reasons Inves ther y Investment Accumulated Expactual lated for failure Discltmen it is involve amount in investment Sourc Project ect realized to achieve osure Disclosu Item t fixed d in current amount by the e of progres ed inc income planned date re indexmeth asset investm reporting funds s by the progress (if (if any) od inves ent period end of reporting omperiod e end of and any)tmen project reportin expected 26Beijing Shougang Co. Ltd. Annual Report 2025 t g period income Project for Own smelting Self- funds 155high- const Iron / 55 Project quality ructi Yes and 529588381.95 535658095.73 green 65.00% 00 under steel with steel bond 00. constructio near-zero on s 00 n carbon emissions 155 55 Total -- -- -- 529588381.95 535658095.73 -- -- 00 -- -- -- 00. 00 4. Financial assets investment (1) Securities investment □Applicable √ Non-applicable (2) Derivatives investment □Applicable √ Non-applicable VIII.Material disposal of assets and equity 1. Material disposal of assets □Applicable √ Non-applicable The Company did not dispose of any material assets during the reporting period. 2. Material disposal of equity □Applicable √ Non-applicable IX. Analysis of main holding companies and stock-jointly companies □Applicable □Non-applicable Main subsidiaries and stock-jointly companies that have an impact on the company's net profit of over 10%.Unit: RMB Yuan Company name Type Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit Shougang Producti Jingtang on and United Subsid sales of 69731174501.98 37087652233.02 60166559298.73 1066793969.52 862817323.56 Iron & iary steel 35821676294.00 Steel Co. products Ltd. and by-products Shougang Producti Zhixin on and Electromag Subsid sales ofnetic steel 3000000000.00 20851174545.64 14584685972.76 15525092748.00 223394166.30 183926564.58 Materials iary products (Qian'an) and by- Co. Ltd. products Acquisition and disposal of subsidiaries during the reporting period □ Applicable √ Non-applicable X. Structured entity controlled by the Company □ Applicable √ Non-applicable XI. Future development prospects 1. Industry pattern and development trend In 2026 guided by the 15th Five-Year Plan the steel industry will enter a critical period of deep adjustment and transformation. The overall industry landscape will be characterized by strict capacity control a weak supply-demand balance and structural optimization.On the supply side the industry adheres to reducing crude steel output and strictly prohibits new capacity ensuring the continuous elimination of outdated capacity and further contraction of supply. On the demand side steel consumption from traditional real estate and infrastructure remains weak while the 27Beijing Shougang Co. Ltd. Annual Report 2025 proportion of steel used in manufacturing sectors—such as new energy high-end equipment automobiles and shipbuilding—is increasing leading to an optimized demand structure.As the development of high-end green and intelligent manufacturing deepens and the momentum of the new round of technological revolution grows the steel industry will accelerate the development of new quality productive forces. It will refine "premium production lines" and create "super steel" driving the qualitative transformation of China from a major steel producer to a leading steel power. In terms of high-end development the focus is on technological innovation and product upgrades to push the industry toward the high end of the global value chain and continuously enhance core competitiveness. In terms of green development the industry is being driven to accelerate pollution and carbon reduction as well as energy efficiency improvements. In terms of intelligent development the pace of transformation from "manufacturing" to "intelligent manufacturing" will continue to accelerate driving continuous improvements in labor efficiency. 2. Development strategy of the Company Focusing on the overall goal of “making the steel industry better and stronger” the Company adheres to the development direction of “high-end high-efficiency intelligent and green” and the development position of “global first-class high-end material service provider”. Shougang Co. focuses on promoting and implementing the “Two Strong and Three Excellent” project (strong profitability innovation ability assetquality operational efficiency and green development) and is determined to pursue the strategy of “Greenmanufacturing Intelligent manufacturing Boutique manufacturing Lean manufacturing and Precisionservice” adhere to the lead of technological innovation and the dual drive of “capital + operation” to promote the high-quality development of the enterprise. Continuously promote the development of high-end products focusing on electrical steel automotive plate and tin (chromium) plate continuously improve the five core advantages of products quality cost service and technology continuously improve the level of steel material manufacturing services and operational efficiency forms a group of strategic product customer clusters with international competitiveness and strives to build Shougang Co. into a steel listed company with global competitiveness and influence. 3. Operating plans of 2026 (1) Planned product output Steel output is planned at 23.28 million tons a year-on-year increase of 2.0%. (2) Planned operating revenue Revenue is planned at RMB 106.48 billion an increase of 3.46% year-on-year. (3) Financing plan Interest-bearing debt maturing amounts to RMB 37.655 billion with RMB 34.176 billion to be refinanced. (4) Budget arrangement for fixed-assets project capital expenditure Fixed asset investment is budgeted at RMB 4.191 billion. (5) Planned R&D intensity (R&D as a percentage of revenue) R&D expenditure is planned to be no less than 4.4% of operating revenue. 4. Potential risk (1) Policy and industry risk 2026 marks a critical starting point for the 15th Five-Year Plan where the steel industry will face dual pressures from policy and the market. Production restrictions in the industry may become a long-term trend and classification management will provide guidance for targeted production curbs. On one hand the competitive environment remains severe; on the other hand policy factors such as the in-depth advancement 28Beijing Shougang Co. Ltd. Annual Report 2025 of the "Dual Carbon" goals and environmental protection production restrictions will bring greater operational pressure to enterprises.To address these risks and pressures first we must closely monitor national industrial policies and industry changes deeply research the upstream and downstream industrial chains strengthen market forecasting and analysis improve rapid response capabilities and enhance the ability to cope with market risks. Second we must strengthen business awareness and market entity awareness keep pace with market changes enhance the coordination of various business factors strengthen the coordinated development of domestic and international markets expand the export of advantageous products and enhance the international influence of our products. Third relying on technological innovation we will promote near- "zero" carbon emission high-quality steel projects drive the adjustment of product and channel structures optimize production processes reduce energy consumption strengthen production line coordination and actively promote precise alignment with high-end demand across the supply chain. Fourth seize the opportunity of green and low-carbon development comprehensively promote the whole variety of low-carbon advantageous products and channel construction work promote green and low- carbon technologies and products and create enterprise green and low-carbon brand. (2) Low-carbon environmental risks In 2025 the steel industry was included in China's national carbon market and carbon trading compliance work is being carried out in accordance with the Ministry of Ecology and Environment’s Guidelinesfor Carbon Emission Accounting and Verification in the Steel Industry. Against the backdrop of China’s “carbonpeaking and carbon neutrality” goals downstream customers are imposing higher demands on the Company’s carbon reduction efforts. In 2026 the European Union’s Carbon Border Adjustment Mechanism (CBAM) will enter its formal implementation phase presenting a new challenge that Chinese export enterprises must directly confront. Consequently domestic industries—from basic raw materials such as steel and aluminum to downstream sectors like automotive components and machinery equipment—will be required to provide more accurate and compliant carbon emission data.To address the aforementioned risks and demands first we will apply integrated carbon-reduction technologies and focus on building dedicated production lines for low-carbon products to meet customers' carbon reduction needs. Second we will further deepen the construction of our Life Cycle Assessment (LCA) system standardize carbon data management improve data quality and meet verification and certification requirements. The third is to continuously build a low-carbon supply chain system select low-carbon raw materials and promote the low-carbon process of procurement production transportation and other processes. (3) Horizontal competition risk There is a certain degree of industry competition between the Company and its controlling shareholder Shougang Group and its affiliates.In order to address industry “Commitment on Measures to Resolve Industry Competition and AvoidIndustry Competition After This Restructuring”. According to the steel industry development plan of Shougang Group Shougang Co. will serve as the only platform for the development and integration of Shougang Group's steel and upstream iron ore resource industries in China ultimately achieving the overall listing of Shougang Group's steel and upstream iron ore resource businesses in China. Afterwards Shougang Group made further commitments based on the aforementioned industry competition commitments. These commitments have been fulfilled on schedule please refer to the corresponding content of "Corporate Governance" in this annual report for details. (5) Related transactions risk 29Beijing Shougang Co. Ltd. Annual Report 2025 Related party transactions between Shougang Co. and Shougang Group and its affiliated enterprises Shougang Co. and Shougang Group signed the framework agreement of related transactions in accordance with the “Stock Listing Rules” and other provisions for regular related transactions. If the agreement cannot be strictly executed in the future interests of the Company will be damaged and also the risks of related transactions will emerge.The Company will strictly comply with various regulations on related party transactions fulfill information disclosure obligations in accordance with the “Stock Listing Rules” and “Articles of Association” ensure the openness fairness and impartiality of related party transactions and safeguard the legitimate rights and interests of the company and all shareholders. The above-mentioned daily related party transactions are ongoing related party transactions that exist in the normal operation and production process of the company.Both parties have followed the legal approval procedures and signed in accordance with regulations which will not affect the independence of the Company.XII. Reception of research communication interview and other activities during the reporting period □Applicable □Non-applicable Method Main contents and Reference forTime Location Type Counterparty provided material basicinformation For further Addressing questions details please from investors refer to the 11 February Company record of the conference Field Instituti regarding the 2025 research on Foresight Fund Company’s capital investor event room expenditures debt- posted by the to-equity ratio and Company on other related issues. the interactiveplatform on 13 February 2025.Addressing questions from investors For further regarding the details please Company’s capital refer to the 11 February Company Field Instituti Changjiang Securities expenditures record of the conference dividend plans investor event2025 room research on Dacheng Fund environmental posted by the investments Company on depreciation the interactive expenses and other platform on 13 related issues. February 2025.For further Pan-World Providing an details please Network Live Online explanation of the refer to the Broadcast communi Company's record of the 18 April 2025 Room cation via Others Total investors performance for investor event (https://rs.p5w. online FY2024 and the first posted by the net/html/1458 platforms quarter of 2025 and Company on 31.shtml) answering investors' the interactivequestions of interest platform on 21 April 2025.Addressing questions For further Huachuang Securities from investors details please Company PICC Asset Tianhong regarding dividends refer to the 23 April 2025 conference Field Institutiresearch on Asset Management capital expenditure record of theroom Hongde Fund plans depreciation investor event Management expenses and other posted by the related issues. Company on 30Beijing Shougang Co. Ltd. Annual Report 2025 the interactive platform on 24 April 2025.Addressing questions from investors For further regarding the details please Telephon Huachuang Securities Company’s first- refer to the Company record of the 13 May 2025 conference e Instituti Bank of quarter earnings communi on Communications electrical steel investor event room Schroder Fund products capital posted by thecation Management expenditure plans Company on depreciation the interactive expenses and other platform on 15 related issues. May 2025.Addressing questions from investors For further regarding the details pleaserefer to the Company Telephon Huatai Securities Company’s first- quarter earnings record of the 14 May 2025 conference e Instituti Polymer Capitalcommuni on Management (HK) strategic products investor event room posted by thecation Limited capital expenditureplans depreciation Company on expenses dividends the interactive and other related platform on 15 issues. May 2025.Addressing questions China Securities CICC from investors Changjiang Securities regarding the Minsheng Royal Fund Company’s green and Management low-carbon Huachuang Securities development For further Hongde Fund electrical steel details please Management products automotive refer to the Qiangang Co. steel products record of the 28 May 2025 conference Field Instituti Harmony Huiyi Fundresearch on GUOTAI HAITONG medium- and heavy- investor event room posted by theSECURITIES GF gauge steel products Securities Gongyin cost-reduction and Company on Ruixin Fund efficiency- the interactive enhancement platform on 30Managemen Fullgoal Fund Management initiatives capital May 2025.Dongfang Wealth expenditure plans Securities depreciationexpenses and other related issues.Providing an explanation of the Company's first-half For further Morning: Pan- 2025 financialresults and details pleaseWorld Network Live Broadcast Online addressing investor refer to the Room communi inquiries regarding record of the 25 August 2025 investor event(https://rs.p5w. cation via Others Total investors products such as net/html/1755 online electrical steel posted by the Company on 50771587174.s platforms automotive steel html) sheets and medium- the interactive and heavy-gauge platform on 26 plates as well as August 2025.issues related to low- carbon development Afternoon: Telephon Huachuang Securities Providing an For further 25 August 2025 Company e Instituti GF Securities explanation of the details pleaseconference communi on Changjiang Securities Company's first-half refer to the room cation Everbright Securities 2025 financial record of the 31Beijing Shougang Co. Ltd. Annual Report 2025 GUOTAI HAITONG results and investor event SECURITIES Minsheng addressing investor posted by the Securities Zheshang inquiries regarding Company on Securities Dongfang products such as the interactive Wealth Securities electrical steel platform on 26 CICC Huatai Securities automotive steel August 2025.China Securities sheets and medium- and heavy-gauge plates as well as issues related to low- carbon development Providing an explanation of the Company's third- quarter 2025 For further Morning: Pan- financial results and details please World Network address investor refer to the Live Broadcast Online inquiries regarding record of the 31 October Room communication via Others Total investors low-carbon investor event 2025 (https://rs.p5w. online development the posted by the net/html/1761 construction of Company on 28602845051.s platforms electric arc furnace the interactive html) steel production platform on 3 lines and products November such as electrical 2025.steel and automotive steel sheets Providing an explanation of the Company's third- quarter 2025 For furtherGF Securities details please Changjiang Securities financial results andaddress investor refer to the Afternoon: Everbright SecuritiesGUOTAI HAITONG inquiries regarding record of the 31 October Company Field Instituti investor event 2025 conference research on SECURITIES Zheshang low-carbon Securities Dongfang development the posted by the room. Company onWealth Securities construction of the interactive CICC China Securities electric arc furnace platform on 3 Northeast Securities steel productionlines and products November such as electrical 2025.steel and automotive steel sheets Addressing questions from investors For further regarding the details please Company’s refer to the performance green record of the 19 November Company Field Instituti China Merchants Fund and low-carbon investor event 2025 conference research on Management development posted by theroom Changjiang Securities electrical steel Company on automotive steel the interactive products capital platform on 20 expenditures November depreciation and 2025.other related issues.XIII. Formulation and implementation of market value management system and valuation improvement plan Whether the Company has formulated a market value management system.□ YES √ NO Whether the Company has disclosed valuation improvement plan. 32Beijing Shougang Co. Ltd. Annual Report 2025 √ YES □ NO The “Valuation Improvement Plan of Beijing Shougang Co. Ltd.” (hereinafter referred to as the “Improvement Plan”) has been considered and approved by the Eighty-fourth Board of Directors Meeting of the Company the main contents of which are as follows: (1) Continuously improve profitability and promote high-quality corporate development; (2) Emphasize investor returns and share the results of development; (3) Improve investor communication and convey the Company's value; (4) Improving the quality of information disclosure and responding to market concerns; (5) Implementing ESG management concepts and improving the level of governance; (6) Exploring diversified forms of incentives and promoting long-term incentive mechanisms; and (7) Encouraging major shareholders to increase their holdings and boosting market confidence. The specific content is detailed in the 1 March 2025 public announcement of the Company's Board of Directors.The Company's implementation status and achievements regarding the "Improvement Plan" are as follows: In 2025 centering on the valuation improvement plan the Company further enhanced its profitability achieving a net profit attributable to shareholders of RMB 996 million for the full year representing a year-on- year increase of 107.68%. The Company implemented the 2024 profit distribution by distributing RMB 171 million in cash to all shareholders. We strengthened investor communication by convening three earnings briefing sessions hosting seven research and exchange sessions for investors and analysts and responding to 199 investor inquiries on the Shenzhen Stock Exchange's "Interactive Easy" platform. Furthermore the Company actively participated in the formulation of ESG standards and promoted sustainable industry development winning multiple ESG awards and achieving an ESG ranking at the forefront of the industry.Additionally a new phase of equity incentive was launched and as of the end of the reporting period the amount paid by the Company for share repurchases totaled RMB 117 million. As of the end of 2025 the Company's market capitalization stood at RMB 37.999 billion representing a 60% increase compared to the end of the previous year.XIV.Implementation of the Action Plan for "Double Improvement of Quality and Return” Whether the Company disclosed an action plan for "dual improvement of quality and return" or not.√ YES □ NOOn 30 September 2024 the Company disclosed the “Announcement of Beijing Shougang Co. Ltd.Concerned with the Action Plan of ‘Dual Improvement of Quality and Returns’ (hereinafter referred to as the‘Action Plan’)”. It mainly includes the following five aspects: (1) Focusing on the main business promoting the Company's high-quality development; (2) Innovation-driven fostering new quality productivity; (3) Technology-first leading the way with green and low-carbon benchmarking; (4) System-building improving the level of ESG management; and (5) Shareholder-focused gradually improving the return on investment.For the specific measures and achievements made by the Company in implementing the “Action Plan” please refer to the “Analysis of principal business” and other relevant contents in this section. 33Beijing Shougang Co. Ltd. Annual Report 2025 SECTION IV: CORPORATE GOVERNANCE ENVIRONMENT AND SOCIETY I. Information of corporate governance The Company continuously improves its corporate governance structure in accordance with the “Company Law” “Securities Law” and other relevant laws and regulations and has formed a corporate governance structure in which the shareholders’ meeting the board of directors and the management are separated from each other and mutual checks and balances have been established so that each level has its own duties and responsibilities within its respective scope of duties and competence which ensures the standardized operation of the Company and effectively safeguards the lawful rights and interests of the Company and all shareholders.During the reporting period the Company primarily enhanced its corporate governance through the following aspects: First in accordance with laws regulations rules and normative documents—including the Company Law the Administrative Measures for Independent Directors of Listed Companies the Guidelines on the Articles of Association of Listed Companies the Listing Rules of Shenzhen Stock Exchange and the Self- regulatory Guide for Listed Companies of Shenzhen Stock Exchange No. 1 - Standardized Operation of Main Board Listed Companies—and based on actual operational needs the Company formulated 18 new systems (such as the Regulations on the Resignation of Directors and Senior Management and the Emergency Response Regulations for Contingencies) revised 62 existing systems (including the Articles of Association and the Regulations on the Management of Raised Funds) abolished the Rules of Procedure for the Board of Supervisors and completed the reform of the Board of Supervisors thereby further enhancing its corporate governance level. Second in response to practical needs arising from system updates and business adjustments the Company organized and conducted self-evaluations of its internal control in accordance with the Risk Control Manual and the Internal Control Evaluation Manual. Third the Company strengthened institutional development in areas such as contract management case management authorization management and basic legal affairs management promoted the integration of compliance management into daily operations continuously updated and optimized its "Three Lists" deepened compliance management in key areas and underwent supervisory audits against the Compliance Management System standard GB/T35770-2022/ISO37301:2021. Fourth in accordance with relevant provisions of the Articles of Association the Shareholders' Meeting Rules of Procedure and other related regulations the Company convened shareholders' meetings using a "hybrid" format (in-person plus online voting) implemented the 2024 annual profit distribution and ensured that all matters submitted to the shareholders' meeting for deliberation and approval were legally compliant.Whether there are material differences between the actual state of corporate governance and the regulatory documents issued by the CSRC on the governance of listed companies.□ YES √ NO There is no material difference between the fact of corporate governance and the regulations for listing companies required by the CSRC.II. Independence of the Company from the controlling shareholder and actual controller in terms of assets personnel finance organization business The Company strictly plans and operates in accordance with the law maintaining complete independence from its controlling shareholders in terms of assets personnel finance institutions and business. The company has a complete procurement production marketing and business management 34Beijing Shougang Co. Ltd. Annual Report 2025 system a complete product research and development organization and personnel and the ability to independently produce and operate. 1. Assets: The Company has a production system and its supporting facilities that are independent of the controlling shareholder and its related parties. The Company's assets are independent and complete with clear ownership. 2. Personnel: The Company has a complete human resources management system which operates independently and has a sound and effective system. The directors and supervisors of the Company are elected in accordance with the statutory approval procedures such as elections by the Shareholders' General Meeting or the Staff and Workers' Congress; senior management personnel are appointed or dismissed by the Board of Directors and there are no irregularities in their concurrent positions with controlling shareholders and related parties. 3. Financial: The Company has an independent financial management department equipped with full-time financial personnel with a complete internal financial accounting and management system and perfect financial management system which is sound and capable of making independent financial decisions and the Company is independently and legally subject to taxation. 4. Institutions: The Company maintains a corporate governance structure comprising the Shareholders’ Meeting the Board of Directors the Board of Supervisors (which was dissolved on 9 September 2025) and the management team. Its organizational system is sound operates independently and exercises its powers autonomously with no subordination to the controlling shareholder or its related parties. 5. Business: The Company has a complete raw fuel procurement product manufacturing product marketing and management system an independent business system conducts its business independently operates independently and bears its own risks.III. Horizontal competition □Applicable □Non-applicable Type of Type association Company Nature of Work progress with the name controlling Causes Solutions and follow-up Company shareholder plan 1. Shougang Group undertakes in respect The process of of measures to resolve inter-sector performance.Since competition and avoid inter-sector In December the competition after the First 2024 Compan Reorganisation Shougang Co.y's (1) Except for the situation of inter- Ltd. and listing sector competition existing prior to the Shougang horizont date of this Letter of Undertaking if the Group signed al Company obtains opportunities for the competi acquisition development and investment "Management Horizont tion has in the same or similar business as Service al The Shougang persiste Shougang Co the Company will Agreement competit controlling Group Local SASAC d as a immediately notify Shougang Co and between ion shareholder Co. Ltd. result of offer them to Shougang Co for selection Shougang the on a priority basis and make its best Group Co. Ltd.partial efforts to make such business and Beijing restruct opportunities available for transfer to Shougang Co.uring for Shougang Co. Ltd. on the the (2) In integrating and operating Affiliated initial existing steel assets not yet transferred Enterprises of public to Shougang Co. the Company will select Shougang offering. the appropriate platform and means to Group Co. Ltd.achieve resource integration in a manner ". Shougang that is conducive to the future transfer to Co. Ltd.Shougang Co. and will not include provides 35Beijing Shougang Co. Ltd. Annual Report 2025 provisions in the relevant agreements or management arrangements with partners or third services for a parties that restrict or prohibit the total of 11 injection of such assets or businesses into target Shougang Co. enterprises in (3) The Company will as far as the steel sector possible safeguard the normal operation of Shougang and profitability of the existing steel Group.assets not injected into Shougang Co. and Shougang ensure that the aforesaid assets and shares will businesses do not fall into operational continue to difficulties due to the Company or other negotiate with circumstances that prevent the ultimate Shougang injection into Shougang Co. or render Group and such injection legally impeded. actively (4) Each commitment made by the promote the Company in eliminating or avoiding follow-up work competition in the same line of business in accordance shall also apply to other enterprises with the under the direct or indirect control of commitment to the Company other than Shougang Co. resolve and its subsidiaries and the Company is horizontal obliged to supervise and ensure that the competition.other subsidiaries of the Company In December implement the arrangements for each of 2025 both the matters described in this document parties signed a and strictly comply with all the supplementary commitments. agreement. 2. As approved by the second extraordinary general meeting of the Company for 2018 on 27 December 2018 Shougang Group undertakes to: (1) According to the development plan of Shougang's steel industry Shougang shares will serve as the sole platform for the development and integration of Shougang Group's steel and upstream iron ore resources industries in the PRC and ultimately realise the overall listing of Shougang Group's steel and upstream iron ore resources businesses in the PRC. (2) In the event that Shougang Group's other companies engaged in steel operations and production further optimise and adjust their product structure through active implementation of national industrial policies and environmental protection requirements and achieve profits for three consecutive years and that the overall situation of the industry does not fluctuate significantly Shougang Group will in accordance with the requirements of securities laws and regulations and industry policies initiate a process including but not limited to acquisition merger restructuring and other means in the interests of shareholders of the listed company The injection of relevant high- quality assets into Shougang will be completed within 36 months after the commencement of the relevant matters. 36Beijing Shougang Co. Ltd. Annual Report 2025 IV. Directors Senior Management 1. General information Number of Number of Number ofshares Number ofshares held shares Name GenderAge Position Status Start date End date of at the increased in reduced in Other shares Reasons for changes of term term the changes held at the in the increase orbeginning of the current end of the decrease of shares the period period currentperiod period Zhu 22 Guosen Male 48 Chairman Incumbent 22 October 2025 December 0 0 0 0 02028 Wang 23 22 Lifeng Male 51 Director Incumbent December December 0 0 0 0 02025 2028 Repurchased and canceled because 8 April 22 the Company'sLi Ming Male 51 Director Incumbent 2024 December 88740 0 88740 0 0 performance did not2028 meet the conditions for the release of restrictions on sale.Repurchased and Employee canceled because Chen Representative 23 22 the Company's Xiaowei Female 52 Director Incumbent December December 88740 0 88740 0 0 performance did not2025 2028 meet the conditions for the release of restrictions on sale.Yu 23 22 Xingxi Male 67 Independent Director Incumbent December December 0 0 0 0 02022 2028 Peng Male 46 IndependentFeng Director Incumbent 23 June 22 June 2020202600000 Wang Female 59 Independent 2222 Cuimin Director Incumbent February December 0 0 0 0 02024 2028 2322 Liu Jun Female 44 Director Incumbent December December 0 0 0 0 0 20252028 2322 Jin Xi Female 35 Director Incumbent December December 0 0 0 0 0 20252028 Repurchased and canceled because Sun General 22 March 22 the Company's Maolin Male 49 Manager Incumbent 2024 December 88740 0 88740 0 0 performance did not2028 meet the conditions for the release of restrictions on sale.Zhao Male 51 Deputy General Incumbent 18 April 22 Peng Manager 2024 December 0 0 0 0 02028 Liu Male 45 Chief Accountant Incumbent 18 August 22 Tonghe 2023 December 0 0 0 0 02028 Repurchased and canceled because Xie 22 the Company's Tianwei Male 44 Deputy General Incumbent 27 OctoberManager 2022 December 69320 0 69020 0 300 performance did not2028 meet the conditions for the release of restrictions on sale.Repurchased and canceled because Xu Male 47 Deputy General 29 22 the Company's Haiwei Manager Incumbent September December 69020 0 69020 0 0 performance did not2025 2028 meet the conditions for the release of restrictions on sale. 37Beijing Shougang Co. Ltd. Annual Report 2025 Qiao Secretary of the 22 yufei Female 37 board Incumbent 26 October 2023 December 0 0 0 0 02028 Qiao Secretary of the 22 yufei Female 37 Board Chief Incumbent 29 October Legal Consultant 2024 December 0 0 0 0 0 2028 Qiu 28 Yinfu Male 58 Chairman Resignation December 21 October 20232025 00000 Sun 22 Maolin Male 49 Director Resignation 8 April 2024 December 0 0 0 0 02025 Li 23 22 Jiantao Male 47 Director Resignation December December 0 0 0 0 02022 2025 Liu Male 50 Independent 23 Shen Director Resignation 23 June 2020 December 0 0 0 0 02025 Repurchased and canceled due to a Wang Deputy General 1 job transfer and the Kai Male 43 Manager Resignation 27 October 2022 September 69020 0 69020 0 0 Company’s failure to2025 meet the conditions for lifting the lock-up period.Total -- -- -- -- -- -- 473580 0 473280 0 300 -- Were there any resignations of directors or senior management during the reporting period √ YES □ NO For further details please refer to the section on the basic information regarding the appointments of directors and senior management mentioned above.Changes in directors and senior manager □Applicable □Non-applicable Name Position Type Date Reason Qiu Yinfu Chairman Resignation 22 October 2025 Job transfer Sun Maolin Director Resignation 22 December 2025 Re-election Li Jiantao Director Resignation 22 December 2025 Re-election Liu Shen Independent Director Resignation 22 December 2025 Re-election Wang Kai Deputy GeneralManager Resignation 1 September 2025 Job transfer 2. Current position Professional background main work experience and main responsibilities of the current director and senior manager of the Company A. Board members 1. Zhu Guosen: Chairman of the Board. Postgraduate education Doctor of Engineering Professorate Senior Engineer. He previously served as a researcher at the Strip & Plate Research Institute of Shougang Research Institute of Technology; a researcher deputy director deputy director (in charge of work) and director of the Sheet Metal Research Institute of Shougang Research Institute of Technology; assistant to the president of Shougang Research Institute of Technology and director of the Sheet Metal Research Institute; chief engineer of Shougang Jingtang United Iron & Steel Co. Ltd.; deputy secretary of the Party Committee and first vice president of the Research Institute of Technology of Shougang Group Co. Ltd.; secretary of the Party Committee and first vice president of the Research Institute of Technology of Shougang Group Co. Ltd.; deputy secretary of the Party Committee of Beijing Shougang Co. Ltd.; deputy secretary of the Party Committee and general manager of Beijing Shougang Co. Ltd.; deputy secretary of the Party Committee director and general manager of Beijing Shougang Co. Ltd.; deputy general manager of Shougang Group Co.Ltd.; and member of the Standing Committee of the Party Committee and deputy general manager of 38Beijing Shougang Co. Ltd. Annual Report 2025 Shougang Group Co. Ltd. He is currently a member of the Standing Committee of the Party Committee and Deputy General Manager of Shougang Group Co. Ltd. as well as Chairman of Beijing Shougang Co. Ltd. 2. Wang Lifeng: Director. Postgraduate education Doctor of Engineering Professorate Senior Engineer. He previously served as a researcher at the Special Steel Research Institute of Shougang Research Institute of Technology; deputy director of the Special Steel Research Institute of Shougang Research Institute of Technology; deputy director of the Technology Center of Beijing Shougang Co. Ltd. and deputy director of the Special Steel Research Institute of Shougang Research Institute of Technology; deputy chief engineer of Shougang Research Institute of Technology acting director of the Heavy Plate Research Institute and director of the Special Steel Research Institute and deputy director of the Technology Center of Beijing Shougang Co.Ltd.; deputy secretary of the Party Committee and deputy director (in charge of work) (first vice president) of the Technology & Quality Department (Shougang Research Institute of Technology) of Shougang Corporation; deputy secretary of the Party Committee and deputy director (in charge of work) (first vice president) of the Technology & Quality Department (Shougang Research Institute of Technology) of Shougang Group Co. Ltd.; secretary of the Party Committee secretary of the Discipline Inspection Commission and chairman of the Labor Union of the Research Institute of Technology of Shougang Group Co. Ltd.; secretary of the Party Committee and chairman of the Labor Union of the Research Institute of Technology of Shougang Group Co.Ltd.; director of the Human Resources Department (Party Committee Organization Department Party Committee United Front Work Department) director of the Party Committee Inspection Office and secretary of the Party Committee of the Authority of Shougang Group Co. Ltd.; and secretary of the Party Committee of Shougang Co. Ltd. He is currently Secretary of the Party Committee and Director of Beijing Shougang Co. Ltd. 3. Li Ming: Director. Postgraduate education Doctor of Engineering Professorate Senior Engineer. He previously served as Deputy Chief (Section-level) of the Technical & Research Section of Shougang No.3 Steelmaking Plant; Deputy Director of the Technology & Quality Department of Shougang Qiangang Co.; Deputy General Manager of Shougang Qian'an Iron & Steel Co. Ltd.; Deputy Secretary of the Party Committee and Director of the Marketing Management Department of Beijing Shougang Co. Ltd.; Deputy General Manager Deputy Secretary of the Party Committee and Director of the Marketing Management Department of Beijing Shougang Co. Ltd.; Director Deputy General Manager Deputy Secretary of the Party Committee and General Manager of the Marketing Center of Beijing Shougang Co. Ltd.; Deputy General Manager Deputy Secretary of the Party Committee and General Manager of the Marketing Center of Beijing Shougang Co. Ltd.; Deputy General Manager Deputy Secretary of the Party Committee and General Manager of the Marketing Center as well as Executive Director and General Manager of the Steel Trading of Beijing Shougang Co. Ltd.; Deputy Secretary of the Party Committee Director and General Manager of Jingtang Co.; and Secretary of the Party Committee and Chairman of Jingtang Co. He is currently Director of Beijing Shougang Co. Ltd. and Secretary of the Party Committee and Chairman of Jingtang Co. 4. Chen Xiaowei: Employee Representative Director. Bachelor’s degree Master of Engineering Senior Political Work Engineer. He previously served as a professional in the General Section and a professional in operation and management in the Operation Section of the Commerce Department of Shougang Mining Corporation as well as Chief of the Operation Section and Chief of the Operation Management Section; Chief of the Operation Management Section and Secretary of the Authority Party Branch of the Commerce Department of Shougang Mining Corporation; an information officer in the Information Section of the Operation Department of Shougang Qiangang Co.; Deputy Chief of the Secretary Section of Shougang Qiangang Co.; Assistant to the Secretary of the Party Committee and Director of the General Office of the Hot Rolling Operation Department of Shougang Qiangang Co.; Deputy Secretary of the Party Committee of the Hot Rolling Operation Department of Shougang Qiangang Co.; Deputy Secretary of the Party Committee Secretary 39Beijing Shougang Co. Ltd. Annual Report 2025 of the Discipline Inspection Commission and Chairman of the Labor Union of the Hot Rolling Operation Department of Beijing Shougang Co. Ltd.; Vice Chairman of the Labor Union Secretary of the Authority Party Committee Secretary of the Discipline Inspection Commission Chairman of the Labor Union and Deputy Director of the Party-Mass Work Department of Beijing Shougang Co. Ltd.; Vice Chairman of the Labor Union Secretary of the Authority Party Committee and Deputy Director of the Party-Mass Work Department of Beijing Shougang Co. Ltd.; Chairman of the Labor Union of Beijing Shougang Co. Ltd.; Chairman of the Labor Union and Employee Representative Supervisor of Beijing Shougang Co. Ltd.; Chairman of the Labor Union of Beijing Shougang Co. Ltd.; and Deputy Secretary of the Party Committee and Chairman of the Labor Union of Beijing Shougang Co. Ltd. He is currently Deputy Secretary of the Party Committee Employee Representative Director and Chairman of the Labor Union of Beijing Shougang Co. Ltd. 5. Yu Xingxi: The independent director of the Company. Graduate degree Master of Management Senior Accountant. He previously served as a soldier in the 1st Company of the 46th Regiment of the 10th Division of the Railway accountant in the Qinghai Tibet Line of the Railway (platoon) accountant in the Finance Department of the New Management Department of the 10th Division of the Railway Deputy President of the Construction Department (Zhengke) of the Railway 20th Bureau General Manager and Accountant of the Construction Department of the Railway 20th Bureau General Manager and Senior Manager of the Finance Department of China Railway Construction Corporation Deputy Director of the Finance Department and Director and Senior Manager in Fund Settlement Center of China Railway Construction Corporation Minister and Senior Manager of the Finance Department of China Railway Construction Corporation Minister and Senior Manager of the Finance Department of China Railway Construction Corporation Limited Secretary of the Board of Directors and Joint Company of China Railway Construction Corporation News Speaker and Senior Manager of China Railway Construction Corporation The Secretary General of the Beijing Listed Companies Association and Professor at the School of Economics and Management of Beijing Jiaotong University he also serves as an independent director of Ruitai Technology Co.Ltd. Beijing Kerui International Co. Ltd. and China National Pharmaceutical Group Co. Ltd. He is currently an independent director of Ruitai Technology Co. Ltd. and independent director of China National Pharmaceutical Group Pharmaceutical Co. Ltd. He was appointed as Independent Director of Beijing Shougang Co. Ltd. on 23 December 2022. 6. Peng Feng: Independent Director. Postgraduate education Master of Engineering Professorate Senior Engineer. The major employment history of Mr. Peng is as follows: Mr. Peng once served as assistant engineer engineer and deputy director of Smelting Raw Materials Department of Metallurgical Industry Planning and Research Institute chief designer and vice director of Smelting Raw Materials Department of Metallurgical Industry Planning and Research Institute chief designer and director of Smelting Raw Materials Department of Metallurgical Industry Planning and Research Institute. He is currently Deputy Chief Engineer and Director of the Smelting & Raw Materials Department of the Metallurgical Industry Planning and Research Institute. He also serves as Vice Chairman of the Ferroalloy Branch of the Chinese Society for Metals and Executive Deputy Secretary-General of the Zhongguancun Stainless and Special Alloy New Materials Industry Technology Innovation Alliance. He was appointed as Independent Director of Beijing Shougang Co. Ltd. on 23 June 2020. 8. Wang Cuimin: Independent Director Postgraduate degree Senior Engineer Asset Appraiser Land Appraiser Enterprise Risk Internal Controller. She previously served as Project Manager of Zhongji Audit Firm; Vice President of Beijing Chinese Enterprise China Assets Evaluation Co. Ltd. Director and Vice President of Beijing Huaxia Taohoe International Investment Management Company Limited; Partner of Grant Thornton Consulting (Beijing) Co. Ltd.; Partner of Zhitong Consulting (Beijing) Co. Ltd. Independent Director of Nanjing 40Beijing Shougang Co. Ltd. Annual Report 2025 Iron & Steel Co. Ltd. review expert of China National Aviation Fuel Group Corporation review expert of Nanfang United Property Right Exchange Center and review expert of China Development Bank; Independent Director of Nanjing Iron & Steel Co. Ltd. review expert of China National Aviation Fuel Group Corporation review expert of Nanfang United Property Right Exchange Center and review expert of China Development Bank. She currently serves as a review expert for China National Aviation Fuel Group Corporation Nanfang United Property Right Exchange Center and China Development Bank. He was appointed as Independent Director of Beijing Shougang Co. Ltd. on 22 February 2024. 8. Liu Jun: Director. Postgraduate education Master of Economics Chartered Financial Analyst (CFA) Intermediate Economist. He previously worked as an intern at the Stock Index Futures Research Center of Shanghai Futures Exchange; Foreign Exchange Management Specialist of the Finance Department of Baosteel Co.; Asset Management Manager of the Finance Department of Baosteel Group; Asset Management Manager of the Finance Department of China Baowu; Investment Manager of the Investment Management Department of China Baowu; Financial Industry Management Manager of the Industrial Finance Development Center (Investment Management Department) of China Baowu; Senior Financial Industry Management Manager of the Industrial Finance Development Center of China Baowu; Industrial Financial Asset Director of the Industrial Finance Development Center of China Baowu; Asset Management Director of the Capital Operation Department and Industrial Finance Development Center of China Baowu; and Asset Director of the Finance and Capital Department of China Baowu. He is currently Asset Director of the Finance and Capital Department of China Baowu and Director of Beijing Shougang Co. Ltd. 9. Jin Xi: Director. Postgraduate education Master of Science Associate Senior Economist Chartered Financial Analyst (CFA). He previously served as an intern in the Capital Operation Department of Beijing Capital Group Co. Ltd. Manager of the Capital Operation Department of Beijing Capital Group Co. Ltd. Senior Manager of the Capital Operation Department of Beijing Capital Group Co. Ltd. Senior Manager of the Capital Management Department of Beijing Capital Group Co. Ltd. and Post-Investment Director of Beijing Jingguorui Equity Investment Fund Management Co. Ltd. He is currently Post-Investment Director of Beijing Jingguorui Equity Investment Fund Management Co. Ltd. and Director of Beijing Shougang Co. Ltd. (2) Senior managers 1. Sun Maolin: General Manager University degree Master of Business Administration in Senior Management Senior Engineer. He previously served as deputy head of the technical and scientific research department in Shougang Medium and Thick Plate Plant; Deputy Director of Silicon Steel Division (presiding over the work)of Shougang Qiangang Co.; Deputy Director of Silicon Steel Division (presiding over the work) in Shougang Qian'an Iron & Steel Co. Ltd.; Minister of the Silicon Steel Business Unit of Beijing Shougang Co.Ltd.; Secretary of the Party Committee and Minister of the Silicon Steel Business Unit of Beijing Shougang Co.Ltd.; Secretary of the Party Committee and Minister of the Silicon Steel Business Unit and Director of the Silicon Steel Engineering & Technology Research Center of Beijing Shougang Co. Ltd.; Assistant to the General Manager Secretary of the Party Committee and Minister of the Silicon Steel Business Unit and Director of the Silicon Steel Engineering & Technology Research Center of Beijing Shougang Co. Ltd.; Deputy General Manager Director of the Silicon Steel Engineering & Technology Research Center Secretary of the Party Committee and Executive Director of Zhixin Co. of Beijing Shougang Co. Ltd.; Member of the Party Committee Deputy General Manager Director of the Silicon Steel Engineering & Technology Research Center and Chairman of Zhixin Co. of Beijing Shougang Co. Ltd.; Member of the Party Committee Deputy General Manager Deputy Secretary of the Party Committee and General Manager of the Marketing Center Executive Director and General Manager of the Steel Trading and Director of Jingtang Co. of Beijing Shougang Co. Ltd.; Deputy Secretary of the Party Committee General Manager and Director of Jingtang Co. of Beijing Shougang 41Beijing Shougang Co. Ltd. Annual Report 2025 Co. Ltd.; Deputy Secretary of the Party Committee Director and General Manager of Beijing Shougang Co.Ltd. He is currently Deputy Secretary of the Party Committee and General Manager of Beijing Shougang Co.Ltd. 2. Zhao Peng Deputy General Manager Bachelor’s Degree Master of Engineering Economist. Formerly served as head of the Planning Department in the Planning and Finance Division of the Shougang Economy and Trade Department; Deputy Director of the Planning Department in the Planning and Finance Division of Shougang New Steel Sales Company; Head of Marketing Planning Department in the Marketing Management Division of Shougang Corporation Sales Company; Chief of Automobile Plate Sales Department and Chief of Management Department in the Cold Rolled Plate Sales Division of Shougang Corporation Sales Company; Deputy Manager of the Shanghai Sales Branch of Shougang Corporation Sales Company; Deputy Director and Party Secretary of the Marketing Management Division of Shougang Corporation Sales Company; Deputy Director of the Marketing Management Division of Shougang New Steel Sales Company (Nominal Deputy Director of the Market Research Department of China lron and Steel Association); Deputy Director of the Automobile Plate Sales Division of Shougang Corporation Sales Company (presiding over the work); General manager of Tianjin Shougang Steel Trading Co. Ltd. (Shougang Tianjin Sales Branch); Deputy Director of Marketing Management Department of Beijing Shougang Co. Ltd.; Deputy General Manager of Marketing Center of Beijing Shougang Co. Ltd.; Member of the Party Committee and Deputy General Manager of Marketing Center of Beijing Shougang Co. Ltd.; Member of the Party Committee and Deputy General Manager of Marketing Center of Beijing Shougang Co. Ltd. and Director of Automobile Plate Sales Department; Deputy Secretary of the Party Committee Director and General Manager of China Shougang International Trade & Engineering Corporation; Deputy Secretary of the Party Committee and General Manager of the Marketing Center and Director of Jingtang Co. of Beijing Shougang Co. Ltd.; Deputy General Manager Deputy Secretary of the Party Committee and General Manager of the Marketing Center Director of Jingtang Co. and Executive Director of the Steel Trading of Beijing Shougang Co. Ltd.; Member of the Party Committee Deputy General Manager Deputy Secretary of the Party Committee and General Manager of the Marketing Center Director of Jingtang Co. and Executive Director of the Steel Trading of Beijing Shougang Co. Ltd. He is currently Member of the Party Committee and Deputy General Manager of Beijing Shougang Co. Ltd. Deputy Secretary of the Party Committee and General Manager of the Marketing Center Director of Jingtang Co. and Director of the Steel Trading. 3. Liu Tonghe: The Chief Accountant of the Company Bachelor’s Degree Senior Accountant. He previously served as Financing Administrator of the Capital Division of the Planning & Finance Department of Shougang Corporation; Supervisor and Deputy Director of the Capital Division of the Planning & Finance Department of Shougang Corporation (New Steel Company); Capital Management Director of the Operation & Finance Department of Shougang Corporation; Capital Management Director of the Operation & Finance Department of Shougang Group Co. Ltd. and Deputy General Manager of Shougang Group Finance Co. Ltd.; Secretary of the Party Branch and Deputy General Manager of Shougang Group Finance Co. Ltd.; Chief Accountant of Beijing Shougang Co. Ltd.; Chief Accountant of Beijing Shougang Co. Ltd. and Director of Jingtang Co.; Chief Accountant of Beijing Shougang Co. Director of Jingtang Co. and Director of Cold-R Co.; Member of the Party Committee Chief Accountant of Beijing Shougang Co. Ltd. Director of Jingtang Co. and Director of Cold-R Co. He is currently Member of the Party Committee and Chief Accountant of Beijing Shougang Co. Ltd. and Director of Jingtang Co. 4. Xie Tianwei: Deputy General Manager Bachelor’s Degree MBA Senior Engineer. The major employment history of Mr. Xie is as follows: He used to be an intern of Shougang Medium thick Plate Factory a member of Shougang 2160 preparatory Group chief operation officer (seconded) of Operation Area A chief 42Beijing Shougang Co. Ltd. Annual Report 2025 operation officer of Operation Area A director of production technology Office assistant director of hot rolling operation Department Assistant director of Production Department and deputy director of hot rolling Operation Department of Shougang Relocated Steel Company Vice Minister of hot rolling Operation Department Vice Minister of Production Department Vice Minister of Manufacturing Department Vice Minister of Manufacturing Department and Vice Minister of System Innovation Department Vice Minister of Manufacturing Department and Director of Contract Planning Room of Marketing Center of Beijing Shougang Co. Ltd. Assistant to general manager of Marketing Center of Beijing Shougang Co. Ltd. director (director) of Contract Planning Office of Marketing Management Department Deputy Director of Manufacturing Department of Beijing Shougang Co. Ltd. Deputy General manager of Beijing Shougang Co. Ltd. He is currently Deputy General Manager of Beijing Shougang Co. Ltd. and Chairman of Zhixin Co. 5. Xu Haiwei: Deputy General Manager Postgraduate education Doctor of Engineering Professorate Senior Engineer. He previously served as Researcher and Assistant to the Director of the Sheet Metal Research Institute of Shougang Research Institute of Technology; Deputy Director of the Sheet Metal Research Institute of Shougang Research Institute of Technology; Assistant to the Minister of the Manufacturing Department of Jingtang Co.; Deputy Minister of the Quality Inspection & Supervision Department of Jingtang Co.; Executive Deputy Director of the Technology Center of Jingtang Co.; Deputy Minister of the Manufacturing Department and Executive Deputy Director of the Technology Center of Jingtang Co. He is currently Deputy General Manager of Beijing Shougang Co. Ltd. 6. Qiao Yufei: Secretary of the Board of Directors Chief Legal Consultant Postgraduate education Master of Economics. Formerly served as Senior Manager and Vice President of the Investment Banking Committee and Equity Investment Department of CITIC Securities Co. Ltd; Senior Vice President of China Minsheng Financial Investment Department; General Manager of Post Investment Management and Service Department of Shougang Fund Co. Ltd. Director and General Manager of Beijing Shouxi Investment Management Co. Ltd. concurrently serving as a supervisor of Beijing Automotive Co. Ltd. director of Shouhui Industrial Financial Services Group Co. Ltd. director of Beijing Chuangye Industrial Operation Management Co. Ltd. supervisor of Beijing Shougang Green Festival Entrepreneurship Investment Co. Ltd. and senior manager of the Board Secretary Office of Beijing Shougang Co. Ltd. Secretary of the Board of Directors of Beijing Shougang Co. Ltd.; Secretary of the Board of Directors and Chief Compliance Officer of Beijing Shougang Co. Ltd. Director of Jingtang Co.; Secretary of the Board of Directors and Chief Compliance Officer of Beijing Shougang Co. Ltd. Director of Jingtang Co. and Director of Cold-R Co. She is currently Secretary of the Board Chief Legal Consultant and Chief Compliance Officer of Beijing Shougang Co. Ltd. Director of Jingtang Co. and Director of Cold-R Co.The situation where the controlling shareholder and the actual controller concurrently serve as the chairman and general manager of a listed company □Applicable□Non-applicable Employment at the shareholder of the Company □Applicable □Non-applicable Received Name Entity Position in shareholder Start date of End date remunerationcompany term of term from other entity (Y/N) Member of the Standing Zhu Shougang Group Co. Ltd. Committee of the PartyGuosen Committee and Deputy June 2024 Y General Manager Liu Jun China Baowu Steel Group Asset Director of the May 2025 Y 43Beijing Shougang Co. Ltd. Annual Report 2025 Corporation Ltd. Finance and Capital Department Beijing Jingguorui Equity Jin Xi Investment Fund Management Post-InvestmentDirector February 2025 YCo. Ltd.Position in other entity □ Applicable √ Non-applicable Notes for any punishment from securities review and management authorities on resigned or current directors and senior managers within the three years □ Applicable √ Non-applicable 3. Remuneration of directors and senior management Decision making procedure determination basis and actual payment of remuneration for directors and senior managers: Directors' remuneration: Independent directors of the Company receive independent director allowances the standards of which are determined by the shareholders' meeting; other directors (non-independent directors) receive no directors' remuneration. Director Li Ming receives remuneration from Jingtang Co. which is not directors' remuneration.Remuneration of senior management personnel: The remuneration of senior management personnel such as the general manager shall be formulated by the Remuneration and Assessment Committee of the Board of Directors of the Company in accordance with regulations and the Annual Measures for the Assessment and Distribution of Remuneration for the General Manager and Other Senior Management Personnel shall be formulated. Assessment and allocation opinions shall be proposed based on the completion of annual tasks and division of responsibilities and shall be submitted to the annual board of directors for review and approval before settling and realizing performance-based annual salaries. The actual payment of remuneration for 2025 is shown in the table below.Remuneration of directors and senior management during the reporting period Unit：RMB 0000 Whether to get Total pretax remuneration Gend remuneration Name Age Position Status from related er received from parties of the the Company Company Zhu Guosen Male 48 Chairman Incumbent 0 Y Li Ming Male 51 Director Incumbent 114.94 No Wang Lifeng Male 51 Director Incumbent 0 No Fem Chen Xiaowei 52 Employee Representative Director Incumbent 0 No ale Yu Xingxi Male 67 Independent Director Incumbent 12 No Peng Feng Male 46 Independent Director Incumbent 0 No Fem Wang Cuimin 59 Independent Director Incumbent 12 No ale Fem Liu Jun 44 Director Incumbent 0 Y ale Fem Jin Xi 35 Director Incumbent 0 Y ale Sun Maolin Male 49 General Manager Incumbent 106.62 No Zhao Peng Male 51 Deputy General Manager Incumbent 95.94 No Liu Tonghe Male 45 Chief Accountant Incumbent 83.45 No Xie Tianwei Male 44 Deputy General Manager Incumbent 89.88 No Xu Haiwei Male 47 Deputy General Manager Incumbent 14.75 No Qiao yufei Fem 37 Secretary of the Board Chief Legal Incumbent 100.37 No 44Beijing Shougang Co. Ltd. Annual Report 2025 ale Consultant Qiu Yinfu Male 58 Chairman Resignation 0 Y Sun Maolin Male 49 Director Resignation 0 No Li Jiantao Male 47 Director Resignation 0 Y Liu Shen Male 50 Independent Director Resignation 12 No Wang Kai Male 43 Deputy General Manager Resignation 63.83 No Total -- -- -- -- 705.78 -- Independent directors of the Company receive independent director allowances the standards of which are determined by the shareholders' meeting. The basis for assessing the remuneration of the General Basis for assessment of actual remuneration received by all directors Manager and other senior management personnel is the and senior management at the end of the reporting period Measures for the Assessment and Distribution of Remuneration for the General Manager and Other Senior Management Personnel of Beijing Shougang Co.Ltd. for 2025 which was deliberated and adopted at the 15th meeting of the 8th Board of Directors. Completion status of assessment on actual remuneration received by all directors and senior management at the end of the reporting Completed period Senior management personnel are paid 80% of the annual salary standard on a routine basis. The remaining Deferred payment arrangements for actual remuneration received 20% shall be paid together with the performance annual by all directors and senior management at the end of the reporting salary (accounting for 70% of the annual salary standard) period in the early part of the following year based on the assessment linked to the completion of annual business objectives and tasks.Stop-payment and recovery status of actual remuneration received by all directors and senior management at the end of the reporting N/A period Other information □ Applicable √ Non-applicable V. Performance of Directors during the reporting period 1. Attendance of Directors at Board meetings and shareholders' meetings Attendance of Directors at Board meetings and shareholders' meetings Number of attendance required for Attendance Attendance Attendance Absent fromat Board AttendanceName of Board at Board meetings by at Board Absence Board Directors meetings meetings in meetings by from Board meetings at during the person communicati proxy meetings twice in a row shareholder s' meetings reporting on (in person) period Zhu Guosen 4 2 2 0 0 No 2 Wang Lifeng 1 1 0 0 0 No 1 Li Ming 12 4 7 1 0 No 2 Chen Xiaowei 1 1 0 0 0 No 1 Yu Xingxi 12 5 7 0 0 No 4 Peng Feng 12 1 7 4 0 No 0 Wang Cuimin 12 5 7 0 0 No 4 Liu Jun 1 1 0 0 0 No 0 Jin Xi 1 1 0 0 0 No 0 Qiu Yinfu 8 2 5 1 0 No 2 Sun Maolin 11 4 7 0 0 No 4 45Beijing Shougang Co. Ltd. Annual Report 2025 Li Jiantao 11 3 7 1 0 No 3 Liu Shen 11 3 7 1 0 No 2 Note on failure to attend two consecutive Board meetings in person N/A 2. Objections from Directors on related issues of the Company Whether the directors raise any objection to the relevant matters of the Company □ YES √ NO During the reporting period the directors did not raise any objection to the relevant matters of the Company. 3. Other details about the performance of duties by Directors Whether the directors' suggestions on the Company have been adopted √ YES □ NO Explanation on the adoption or non-adoption with related suggestions from the directors N/A VI. Special committees under the board of directors during the reporting period Name of the Number of Important Other Details of committee Member meeting Convening convened date Details of the meeting opinion and performan objection advice ce of duty (if any) Board Management Agreements Committee Compos 2 April Beijing Shougang Co. on matters to for Strategy ed of 5 1 2025 Ltd. 2023 Annual be submitted N/A Risk ESG & directors Sustainability Report for review at Compliance the meeting Compos Agreements Board Audit ed of 3indepen 1 15 January Letter to Those Charged on matters to Committee dent 2025 with Governance be submitted N/A for review at directors the meeting Compos Internal Control Agreements Board Audit ed of 3 28 Evaluation Report of on matters to Committee indepen 1 February Beijing Shougang Co. be submitted N/Adent 2025 Ltd. for 2024 and Audit for review at directors Work Plan for 2025 the meeting Letter to Those Charged with Governance Draft 2024 Annual Financial Compos Accounts Report of Agreements Board Audit ed of 3 Beijing Shougang Co. on matters to Committee indepen 1 31 March 2025 Ltd. and Financial be submitted N/Adent Information Report for review at directors (Draft) to the First the meeting Quarterly Report of Beijing Shougang Co.Ltd. for 2025 Report of the Audit Committee of the Board of Directors of Beijing Compos Shougang Co. Ltd. on theSupervision Duties Agreements Board Audit ed of 3 on matters to Committee indepen 1 7 April Performed by the dent 2025 Accounting Firm and be submitted N/A for review at directors Report on the Evaluationof the Performance of the meeting Duties by Beijing Shougang Co. Ltd. on the Accounting Firm Board Audit Compos 1 9 May 2025 Proposal on Agreements N/A 46Beijing Shougang Co. Ltd. Annual Report 2025 Committee ed of 3 Reappointment of on matters to indepen Accounting Firm by be submitted dent Beijing Shougang Co. for review at directors Ltd. the meeting Report of Beijing Compos Shougang Co. Ltd. on the ed of 3 Financial Accounts Agreements Board Audit indepen 1 12 August Report for the on matters to Committee 2025 Semiannual Period of be submitted N/Adent for review at directors 2025 and FinancialInformation in the the meeting Semiannual Report Compos Report of Beijing Agreements Board Audit ed of 3 21 October Shougang Co. Ltd. on on matters to Committee indepen 1 2025 Financial Information in be submitted N/Adent the 2025 Third Quarter for review at directors Report the meeting Proposal of Beijing Shougang Co. Ltd. on the Remuneration Remuneratio Compos Realization of General n and ed of 3 Manager and Other Agreements Appraisal indepen 1 31 March Senior Management on matters to Committee dent 2025 Personnel for the Year be submitted N/A of the Board directors 2024 and the for review at Remuneration and the meeting Assessment Allocation Measures for the Year 2025 Proposal on the and its Summary Proposal on the Assessment and Administration Measures for the Implementation of the 2025 Stock Option and Restricted Stock Incentive Plan Proposal on the Measures for the Administration of 2025 Remuneratio Compos Stock Options and n and ed of 3 19 Restricted Stock of Agreements Appraisal indepen 1 September Beijing Shougang Co.on matters to Committee dent 2025 Ltd. Proposal on the be submitted N/A Grant Plan for 2025 Stock for review atof the Board directors Options and Restricted the meeting Stock of Beijing Shougang Co. Ltd.Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related to the 2025 Stock Option and Restricted Stock Incentive Plan List of Grantees under the 2025 Stock Option and Restricted Stock Incentive Plan of Beijing Shougang 47Beijing Shougang Co. Ltd. Annual Report 2025 Co. Ltd.Compos Proposal of Beijing ed of 3 Shougang Co. Ltd. on the directors Recommendation of Agreements Nomination 19 Director Candidates on matters to Committee including 1 September Proposal of Beijing be submitted N/A of the Board 2 2025 Shougang Co. Ltd. on the for review at indepen Nomination of Deputy the meeting dent General Manager directors Candidates Compos ed of 3 directors Nomination 27 Proposal on the Re- Agreements on matters to Committee including 1 November election of the Board ofDirectors of Beijing be submitted N/Aof the Board 2 2025 indepen Shougang Co. Ltd.for review at the meeting dent directors Proposal of Beijing Shougang Co. Ltd. on Nominating Candidates Compos for the General Manager ed of 3 Proposal of Beijing directors Shougang Co. Ltd. on Agreements Nomination 11 Nominating Candidates on matters to Committee including 1 December for the Secretary of the be submitted N/A of the Board 2 2025 Board of Directors for review at indepen Proposal of Beijing the meeting dent Shougang Co. Ltd. on directors Nominating Candidates for Senior Management including Deputy General Managers VII. Performance of the Audit Committee Whether the Committee identified any risks within the Company during supervision activities carried out during the reporting period □ YES √ NO None of those issues under the supervision was objected by the audit committee during the reporting period.VIII.Personnel of the Company 1. Number of employees professional composition and education background Number of employees in the parent company 5247 Number of employees in the main subsidiary 13046 Total number of employees 18293 Total number of employees receiving salary in the current 18293 period Number of retired employees to be borne by parent company 1587 and main subsidiary Professional composition Professional composition category Number of professional compositions Production 12351 Salesman 766 Technician 2538 Finance 293 48Beijing Shougang Co. Ltd. Annual Report 2025 Administrative 1609 Services and other 736 Total 18293 Education background Type Quantity Master's degree or above 1645 Bachelor’s degree 8227 College 5439 Vocational secondary and below 2982 Total 18293 2. Remuneration policies The middle management of the Company implemented the annual salary system and the annual salary structure includes three parts: basic annual salary performance annual salary and term incentive. Of which the basic salary is paid monthly. The performance bonus (70% of annual salary standard) links to the performing duty monthly or annually and annual assessment and settlement based on the completion of the Business Objective Responsibility Agreement. The term incentive shall be assessed and distributed at the end of the term in accordance with the provisions of the Term Target Responsibility Agreement based on the business and production performance during the term.The salary system of front-line and blow staff is composed of occupation salary and benefit salary. The occupation salary is influenced by the attendance and the benefit salary is distributed as the monthly performance on the duty. 3. Training program The Company is actively refining its institutional framework to take its talent development efforts to the next level. Qianshun Base and Zhixin Co. restructured the organisational learning system developed course resources by tier and category and organised senior management key operational staff and members of the TTT training programme to develop 415 internal courses; 254 high-quality courses were evaluated and certified for inclusion in the Company's knowledge base; Pioneered the ‘Master Teachers and Excellent Courses’ competition brand and successfully organised the inaugural internal trainer competition attracting 160 internal trainers to compete. The event culminated in the selection of the "Double Top Ten” benchmarks (Top Ten Trainers and Top Ten Courses) thereby creating a model for others to follow. Establishing a digital and intelligent talent development framework and in line with strategic development and operational realities formulating the Digital and Intelligent Technology Talent Development Plan alongside the establishment of corresponding certification incentive and training mechanisms for digital and intelligent technology professionals has provided guidance for the systematic advancement of talent development in this field. Jingtang Co. focuses on strategic development and the cultivation of talent pipelines optimising the construction of a training system that covers the four occupational groups within MPTO and spans the tiers of “Job competence Skills enhancement and High-potential development”; focusing on operational and managerial staff organise leadership seminars and training programmes for young key personnel to enhance their professional competence and political awareness; focusing on specialist staff conduct training programmes to improve the capabilities of operations managers ensure compliance in tendering and procurement and empower staff through systems management thereby promoting both improved management effectiveness and a greater spirit of innovation among specialist staff; focusing on technical and managerial staff conducting training programmes such as digital and intelligent engineering low-carbon technology product performance prediction modelling and artificial intelligence machine vision applications to deepen the development of specialist knowledge and technical capabilities; and focusing on skilled 49Beijing Shougang Co. Ltd. Annual Report 2025 operational staff organising initiatives such as the Gold-Level Team Leader Training Camp QTI improvement leader training and vocational skills certification training to enhance skills development. 4. Outsourcing of labor source □ Applicable √ Non-applicable IX. Proposal for profit distribution and transfer of capital reserve to share capital Formulation Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during the reporting period □Applicable □Non-applicable 1. Since its establishment the Company has always valued the return of investors and safeguarded the legitimate rights and interests of all shareholders especially the small and medium-sized shareholders. In accordance with the requirements of regulations and normative documents issued by the regulatory authorities the Company has promptly revised and improved the provisions of the Articles of Association on profit distribution policies and the criteria and proportion of cash dividends are clear and unambiguous. 2. During the reporting period the Company amended the Articles of Association in accordance with the relevant provisions of the Guidelines on the Articles of Association of Listed Companies and other applicable regulations. The profit distribution plan was in compliance with the requirements of the Articles of Association in respect of the provisions on profit distribution and was consistent with the regulations and normative documents issued by the China Securities Regulatory Commission and other regulatory bodies and had fulfilled the statutory approval procedures.Special description on cash dividend policy Whether it meets the requirements of the Article of Y Association or the Resolution of the General Meeting (Y/N): Whether the bonus standards and proportion are clear and Y well-defined (Y/N): Whether has a completed relevant decision-making Y procedures and mechanism (Y/N): Whether independent directors fulfill duties and play a due Y role (Y/N): If the Company does not distribute cash dividends specific reasons should be disclosed as well as the measures to be N/A taken next to enhance investor returns: Minority shareholders whether has opportunity of full expression and appeals the legal interest of the minority is Y being protected adequately (Y/N): As for the adjustment and change of cash bonus policy the condition and procedures whether meets regulations and Y transparent (Y/N): The Company was profitable during the reporting period and the Parent Company’s profit available for distribution to shareholders was positive but no cash dividend distribution plan was proposed □ Applicable √ Non-applicable Profit distribution and conversion of capital reserves into share capital during the reporting period □Applicable □Non-applicable Number of bonus shares per 10 shares 0 Dividend payout per 10 shares (RMB yuan) (including tax) 0.4 Number of shares converted per 10 shares shares) 0 50Beijing Shougang Co. Ltd. Annual Report 2025 Distribution plan's share capital base (shares) 7754967370 Cash dividends (RMB yuan) (including tax) 310198694.80 Cash dividend amount in other ways (such as repurchase of shares) (RMB yuan) 0.00 Total cash dividends (including other methods) (RMB yuan) 310198694.80 Distributable profit (RMB yuan) 995635969.34 The proportion of total cash dividends (including other methods) to total profit distribution 100% Current cash dividend situation Others Detailed explanation of profit distribution or capital reserve conversion plan The Company proposed to distribute a cash dividend of RMB 0.40 (including tax) per 10 shares to all shareholders on the basis of the total number of 7754967370 shares of the share capital total cash distribution of RMB 310198694.80 accounting for 195.18% of the parent company's realizable profit available for distribution in 2025 accounting for 31.72% of the profit available for distribution in the consolidated statement of income for the year of 2025 and accounting for 31.16% of the net profit attributable to the parent company in the consolidated statement of income for the year of 2025 There will be no capital reserves converted to share capital this time.The proposal is subject to the approval of the General Meeting of Shareholders.X. Implementation of the equity incentive plan employee shareholding plan or other employee incentive measures of the Company □Applicable □Non-applicable 1. Equity incentive According to the Reply on The Implementation of Equity Incentive Plan for Beijing Shougang Co. Ltd.issued by State-owned Assets Supervision and Administration Commission of Beijing Municipal People's Government (Jingguozi [2021] No. 140) and the resolution of the Company's first interim general Meeting of shareholders in 2021 the Company implemented the 2021 restricted stock Incentive plan hereinafter referred to as the “2021 Incentive Plan”). 64901800 shares were issued to 386 directors senior management personnel core technical personnel and management backbones. The restricted stock grant date is 9 December 2021 and the restricted stock is booked as of 23 December 2021.Pursuant to the 2021 Incentive Plan due to the failure to meet the performance assessment conditions of the Company at the corporate level for the 2022 2023 and 2024 financial years as stipulated in the conditions for the lifting of restrictions under the 2021 Incentive Plan as well as staff changes and other reasons and subject to the approval of the Company’s general meeting of shareholders the Company repurchased and cancelled 25257565 20630585 and 19013650 shares of the aforementioned restricted shares in 2023 2024 and 2025 respectively. Information on share option scheme provided to directors and senior management during the reporting period □Applicable □Non-applicable Unit: share Numbe Number r of of Numbe Numb Restric newly r of er of Exercise NumberMarket price of of price at Number of Number Number Number ted granted shares shares of of newly Grant of shares restrict exercis exercis the shares restrict the end restricted unlocked granted price of restricte Name Position held at ed able ed exercised ed of the shares held during during during the shares reporti at the shares restricted restricted d shares the shares the the reporting held at ng beginning during shares shares held at beginni during the during the (RMB/sha the end ng of the reporti reporti period the end period of the ng ng (RMB/ of the (RMB/ period current reporting re) of the the reportin share) period share) period period period period g period period period Li Ming Director 0 0 0 0 0 0 88740 0 0 3.25 0 Chen Employee Xiaowe Represent 0 0 0 0 0 0 88740 0 0 3.25 0 i ative 51Beijing Shougang Co. Ltd. Annual Report 2025 Director Sun General Maolin Manager 0 0 0 0 0 0 88740 0 0 3.25 0 Xie Deputy Tianwe General 0 0 0 0 0 0 69020 0 0 3.25 0 i Manager Xu Deputy Haiwei General 0 0 0 0 0 0 69020 0 0 3.25 0Manager Deputy Wang General Kai Manager 0 0 0 0 0 0 69020 0 0 3.25 0(Resignati on) Total -- 0 0 0 0 -- 0 -- 473280 0 0 -- 0 Evaluation mechanism and incentive of senior management Senior management including the General Manager are remunerated on an annual salary basis and a medium-to-long-term incentive mechanism has been established. Among them: the basic annual salary is 30% of the standard annual salary and is paid monthly based on attendance; the performance-related annual salary is 70% of the standard annual salary with a monthly advance payment of 50%. The annual assessment and allocation opinions shall be proposed by the Compensation and Assessment Committee of the Board of Directors of the Company in accordance with regulations based on the completion of annual tasks and division of responsibilities in the "Salary Assessment and Allocation Method for General Managers and Senior Management Personnel". After being reviewed and approved by the annual board meeting all performance- based annual salaries shall be settled and fulfilled; The term incentive income is determined based on an annual salary standard of 30% and will be assessed and fulfilled at the end of the term according to the "Term Target Responsibility Agreement". 2. Implementation of employee stock ownership plan □ Applicable √ Non-applicable 3. Other employee incentive measures □ Applicable √ Non-applicable XI. Construction and implementation of internal control system during the reporting period 1. Construction and implementation of internal control system The Company has established and improved its internal control system and has revised and improved it in conjunction with actual operations fully leveraging its institutional guarantee role. By 2025 the Company has established 18 policies including the Regulations on the Resignation of Directors and Senior Management and the Emergency Response Regulations for Contingencies and revised 62 policies including the Articles of Association and the Regulations on the Management of Raised Funds; by the end of 2025 the Company had a total of 528 policies of which 524 were formulated and implemented by the Company and four were forwarded from government and regulatory authorities. 2. Particulars of material deficiencies in internal control detected during the reporting period □ YES √ NO XII. The Company’s management and control of subsidiaries during the reporting period N/A Abnormalities exist in the management and control of subsidiaries □ YES √ NO XIII. Self-assessment report on internal control or auditor’s report on internal control 1. Appraisal Report of Internal Control Disclosure date of full internal control 18 April 2026 52Beijing Shougang Co. Ltd. Annual Report 2025 evaluation report Disclosure index of full internal control Beijing Shougang Co. Ltd. 2025 Internal Control Self-Assessment Report disclosed on evaluation report CNINFOWebsite (http://www.cninfo.com.cn/).Proportion of total assets included in internal control evaluation report accounting for the total assets in the 100.00% consolidated financial statements Proportion of operating revenue included in internal control evaluation report accounting for operating 100.00% revenue in the consolidated financial statements Defect identification criteria Category Financial Reports Non-financial Reports Material deficiency: there is causing multiple casualties among employees and citizens causing serious damage to the environment and the situation spiraling out of control; It may or has made the Company unable to achieve all operating objectives Material deficiency: resulting in business suspension. It is not an objective (1) it may or has made the reason and has exceeded the budget by more than 20% Company unable to in terms of time manpower or cost without proper achieve all operating approval and has exceeded the level of importance; objectives resulting in May or has already caused significant impact on the business suspension. It is Company negative news is widely circulated causing not an objective reason significant damage to the reputation of the enterprise and has exceeded the government or regulatory agencies conduct budget by more than 20% investigations attracting public attention and causing in terms of time irreparable damage to the reputation of the enterprise; manpower or cost Violating national laws and regulations facing business without proper approval suspension legal litigation or economic compensation and has exceeded the which may or have already caused serious social impact level of importance. (2) being notified or publicly condemned by regulatory The Company has agencies or even ordered to suspend business for financial related fraud rectification.which affects the accuracy Significant deficiency: failure to establish a "three of financial statements. major and one major" decision-making process or Qualitative criteria Significant inadequate or inadequate implementation of thedeficiency: it may or has decision-making process which may or has already had slowed down the business negative impacts; May or has seriously affected the operation or unable to health of multiple employees or citizens or caused achieve some business general environmental damage which requires external objectives or exceeding support to be controlled; It may or has slowed down the the budget by 6% - 20% in business operation or unable to achieve some business terms of time manpower objectives or exceeding the budget by 6% - 20% in or cost for non-objective terms of time manpower or cost for non-objective reasons and without reasons and without proper approval; Negative news proper approval. may or has already had a significant impact on the General deficiency: it Company spreading in a certain region and attracting may or has caused slight the attention of relevant stakeholders such as partners impact on business suspending cooperation low employee efficiency and activities which is not an reduced customer loyalty; Violation of national or objective reason and has regional regulations or industry norms facing legal exceeded the budget by proceedings economic compensation which may or 1% - 5% in terms of time have already caused general social impact has attracted manpower or cost the attention of regulatory agencies and requires without proper approval. regular rectification.General deficiency: it may or has temporarily affected the health of employees or citizens; It may or has caused slight impact on business activities which is not an objective reason and has exceeded the budget by 1% - 5% in terms of time manpower or cost without proper 53Beijing Shougang Co. Ltd. Annual Report 2025 approval; Negative news may or has already had a slight impact on the Company spreading within the Company or locally and will not attract the attention of stakeholders; Violation of company regulations or conflicts with self-established rules and regulations may have caused minor social impact and will not attract the attention of regulatory authorities.Material misstatement: amount of misstatement ≥ 1% of total assets Significant Material misstatement: amount of direct property misstatement: 0.5% of losses ≥ RMB 10000000 Quantitative criteria total assets ≤ amount of Significant misstatement: RMB 5000000 ≤ amount misstatement < 1% of of direct property losses < RMB 10000000 total assets General misstatement: RMB 100000 ≤ amount of General property losses < RMB 5000000 misstatement: amount of misstatement < 0.5% of total assets Number of material defects in financial reports 0 Number of material defects in non- financial reports 0 Number of significant defects in financial reports 0 Number of significant defects in non- financial reports 0 2. Audit report for internal control □Applicable □Non-applicable Audit opinion on internal control Beijing Shougang Co. Ltd. has kept the effective internal control over financial reporting in all material matters on 31 December 2025 in accordance with the Basic Standards for Internal Control of Enterprises and other relevant regulations. Disclosure of internal control audit report Disclosed Date of disclosure of the internal control audit report 18 April 2026 Source for the internal control audit report Searching for: http://www.cninfo.com.cn/.Audit opinion on internal control Standard unqualified opinion Whether material deficiency over non-financial reporting No Whether non-standard opinions from independent auditors in the audit report on internal control □ YES √ NO Whether there is consistent opinion between the audit report on internal control and the self-assessment report on internal control √ YES □ NO Whether non-standard audit opinions on internal control were issued during the reporting period or the previous financial year □ YES √ NO XIV.Rectification of problems found in self-inspection under the special initiative on corporate governance of the listed company The Company has no problems found in self-inspection under the special initiative on corporate governance of the listed company.XV. Disclosure of environmental information Whether listed company and its principal subsidiaries are included in the list of enterprises required by law to disclose environmental information √ YES □ NO Number of enterprises included in the list of 4 54Beijing Shougang Co. Ltd. Annual Report 2025 companies required by law to disclose environmental information Query index for environmental information disclosure report in No. Company name accordance with the law Enterprise Environmental Information Disclosure System (Hebei) (http://121.29.48.71:8080/#/fill/detailenpId=9A8157FA-5F19-4148- 1 Qiangang Co. 81E3-5A9E2D2BF364&year=2024&reportId=21179e3b-49b0-46c7- 9016-02163d71d6ef) Enterprise Environmental Information Disclosure System (Hebei) 2 Jingtang Co./Jingtang Base. (http://121.29.48.71:8080/#/fill/detailenpId=062847DE-91A3-4942- 82C6-BEFFCE5B3AD4&year=2024) Enterprise Environmental Information Disclosure System (Hebei) 3 Zhixin Co. (http://121.29.48.71:8080/#/fill/detailenpId=CDC7E0B3-39F8-40A0- B1A3-05D0E0D4E3C8&year=2024) Enterprise Environmental Information Disclosure System (Beijing) 4 Cold-R Co. (https://hjxxpl.bevoice.com.cn:8002/home) XVI.Social responsibility The Company has independently prepared the "2025 Sustainable Development Report" and submitted it for review at the 4th meeting of the 9th Board of Directors. The specific content is detailed in the company announcement on 18 April 2026.XVII. Consolidate and expand the achievements of poverty alleviation and rural revitalization The Company actively supports charitable causes prioritising rural revitalisation disaster relief voluntary service environmental protection and emissions reduction and educational support as key areas of focus thereby actively fulfilling its social responsibilities. Through charitable donations support for the construction of kindergartens the organisation of a series of “Learn from Lei Feng” activities and the active encouragement of staff to participate in voluntary work we strive to improve the quality of life and development of local communities thereby contributing Shougang Stock’s strength to the creation of better communities. To build on the achievements of the poverty alleviation campaign implement consumption- based poverty alleviation and support rural revitalisation Shougang Stock has purchased agricultural and sideline products from poverty-stricken areas totalling RMB 15.28 million in recent years with RMB 2.7195 million worth of such products procured from designated assistance regions in 2025. 55Beijing Shougang Co. Ltd. Annual Report 2025 SECTION V. SIGNIFICANT EVENTS I. Implementation of commitment 1. Commitments made by the Company's actual controller shareholders related parties acquirers and the Company and other committed parties have been fulfilled during the reporting period and have not been fulfilled by the end of the reporting period □Applicable □Non-applicable Com Commit mit Com Commitment ment Type Contents men mitm Implementatio party t ent n date term 1. The shares of the listed company acquired by the Company in this transaction shall not be transferred within 36 months from the date when the shares are issued. However transfers permitted by applicable law are not subject to this restriction.Within six months after completion of the transaction if the closing price of the shares of the listed company for 20 consecutive trading days is lower than the issuing price of the shares or the Commitments closing price at the end of six months after the made in the Shouga completion of this transaction is lower than the issue 20 acquisition ng price of this share the locking period of shares 19 report or the Group obtained by the Company through this transaction Dece Octo report on Co. will be automatically extended for six months on the mbe ber Implemented changes in Ltd. basis of the above locking period. If such shares are r 2025 equity interests increased due to the listed company's granting of 2022 bonus shares conversion of capital stock and other reasons the additional shares of the listed company shall be locked in accordance with the above lockup period. 2. If the aforementioned commitment to lock up shares is inconsistent with the latest regulatory opinions of the securities regulatory authority the company shall adjust the aforementioned commitment according to the regulatory opinions of the relevant securities regulatory authority. 1. According to the development plan of The process of Shougang's steel industry Shougang shares will serve performance.as the sole platform for the development and In December integration of Shougang Group's steel and upstream 2024 iron ore resources industries in the PRC and Shougang Co.ultimately realise the overall listing of Shougang Ltd. and Group's steel and upstream iron ore resources Shougang businesses in the PRC. Refer Group signed Shouga 27 to the Commitment in ng 2. In the event that Shougang Group's other cont "Management assets Group companies engaged in steel operations and Dece ents Service restructuring Co. production further optimise and adjust their product mbe of Agreement Ltd. structure through active implementation of national r com between industrial policies and environmental protection 2018 mitm Shougang requirements and achieve profits for three ent Group Co. Ltd.consecutive years and that the overall situation of and Beijing the industry does not fluctuate significantly Shougang Co.Shougang Group will in accordance with the Ltd. on the requirements of securities laws and regulations and Affiliated industry policies initiate a process including but not Enterprises of limited to acquisition merger restructuring and Shougang other means in the interests of shareholders of the Group Co. 56Beijing Shougang Co. Ltd. Annual Report 2025 listed company The injection of relevant high-quality Ltd.". Shougang assets into Shougang will be completed within 36 Co. Ltd.months after the commencement of the relevant provides matters. management services for a total of 11 target enterprises in the steel sector of Shougang Group.In December 2025 the two parties signed a supplementary agreement.When the market improves in the future Shougang Mining Corporation achieves stable profits for two consecutive years and the overall situation of the industry is not fluctuated greatly Shougang Corporation will start the injection of Shougang Mining Corporation in Shougang Co. and complete it within 36 months. Before Shougang Mining Refer Shouga Corporation joined in Shougang Co. Shougang Group to Commitment in ng will urge Shougang Mining Corporation to conduct 20 cont assets Group necessary related party transactions with Shougang April ents The process of restructuring Co. Co. in accordance with fair and reasonable market 2017 of performance.Ltd. price strictly conform to the requirements of laws com and regulations normative documents the articles mitm of association of Shougang Co. and related ent transaction management system and perform the corresponding review approval and information disclosure procedures for the necessary related transactions between Shougang Co. and Shougang Mining Corporation.The Company will not damage the independence of Shougang Co. due to the increase of the proportion of shares held by Shougang Co. after the completion First Shouga of the reorganization. The Company will maintain reorg Commitment in ng "the five-aspect separation principle" which means aniza Implementing assets Group assets personnel financial affairs institution and 20 tion/l of the long- restructuring Co. business should be independent of Shougang Co.July ong- term Ltd. strictly conform to relevant provisions of the CSRC on 2012 term com commitment.the independence of listed companies not illegally utilize Shougang Co. to provide guarantees not mitm illegally occupy the assets of Shougang Co. and keep ent and maintain the independence of Shougang Co. 1. The Company will perform its obligations as the controlling shareholder of Shougang Co. in good faith try to avoid and reduce the related transactions with Shougang Co. (including the enterprises it controls); as for the related Shouga transactions which are unavoidable or occur for 29 Long Commitment in ng reasonable reasons between the Company and other Sept - Implementing assets Group enterprises under the control of the Company and emb term of the long- restructuring Co. Shougang Co. and the enterprises it controls the er com term Ltd. Company will not require or accept the more 2015 mitm commitment.favorable conditions provided by Shougang Co. than ent the conditions to an independent third party in any fair market transaction. The Company and other enterprises under the control of the Company will sign a standardized related party transaction 57Beijing Shougang Co. Ltd. Annual Report 2025 agreement with Shougang Co. in accordance with the law follow the market principles of openness fairness and justice in accordance with fair and reasonable market price conform to relevant provisions of laws regulations and normative documents in the decision-making procedures of related transactions and disclose information in accordance with the law. 2. The Company and other enterprises controlled by the Company will not obtain any improper benefits or make Shougang Co. bear any improper obligations through related party transactions with Shougang Co. or the enterprises controlled by Shougang Co. 3. The Company will be liable for the losses to Shougang Co. and the enterprise controlled by Shougang Co. due to the related party transactions with them in violation of the above commitments.Completed on time Y 2. Concerning assets or project of the Company which has profit forecast and reporting period still in forecasting period explain reasons of reaching the original profit forecast □ Applicable √ Non-applicable 3. The Company's performance commitments □ Applicable √ Non-applicable II. Non-operational fund occupation from controlling shareholders and its related party □Applicable□Non-applicable No non-operational fund occupation from controlling shareholders and its related party during the reporting period.III. External guarantees against the rules and regulations □ Applicable √ Non-applicable No external guarantee provided by the Company which against the rules and regulations during the reporting period.IV. Explanation from board of directors on the latest modified auditor’s report □ Applicable √ Non-applicable V. Explanation by the Board of Directors and Independent Directors (if any) regarding the “non-standard audit report” issued by the audit firm for the current reporting period□ Applicable √ Non-applicable VI. Changes in accounting policies accounting estimates or correction of major accounting errors as compared to the financial report for the prior year □ Applicable √ Non-applicable No changes in accounting policies accounting estimates or correction of major accounting errors during the Company’s reporting period.VII. Explanation on the change in the scope of consolidated financial statements during the reporting period as compared to financial report of the previous year √ Applicable □ Non-applicable During the current period Jingtang Company a wholly-owned subsidiary of the Company acquired 100% of the equity interest in Hebei Shougang Jingtang Machinery Co. Ltd. through a business combination under common control. For further details please refer to Section VIII.IX. Business combinations involving entities under common control.VIII.Appointment and non-reappointment (dismissal) of CPA Current accounting firm Name of domestic accounting firm ShineWing Certified Public Accountants (LLP) 58Beijing Shougang Co. Ltd. Annual Report 2025 Remuneration for domestic accounting firm (RMB 0000) 235 Continuous life of auditing service for domestic accounting firm (year) 2 Name of domestic CPA Guo Yong Lu Min Continuous life of auditing service for domestic accounting firm (year) 2 Whether changed the accounting firm in current year □ YES √ NO Appointment of internal control auditing accounting firm financial consultant or sponsor □Applicable □Non-applicable Approved by the shareholders' general meeting of the Company the Company appointed ShineWing Certified Public Accountants (LLP) as the audit firm of the Company's financial report and internal control for the year 2025 for a period of one year.IX. Suspension and termination of listing after disclosure of annual report □ Applicable √ Non-applicable X. Insolvency or restructuring related matters □ Applicable √ Non-applicable No insolvency or restructuring related matters during the reporting period XI. Material litigation or arbitration cases □ Applicable √ Non-applicable No material litigation or arbitration cases during the reporting period.XII. Punishment or rectification □ Applicable √ Non-applicable No punishment or rectification during the reporting period.XIII. Integrity of the Company and its controlling shareholders and actual controllers during the reporting period □ Applicable √ Non-applicable XIV.Material related party transactions 1. Related transaction with routine operation concerned □Applicable □Non-applicable Availa Relate Propo Appro Whet Relate ble Content Pricin d rtion ved her it d markeRelate d Relati Trans s of g excee transa t onshi action related princi Trans transa in transa Disclo Disclose partie ple of action ction simila ction ds the ction prices sure d s p type transact transa price price r quota appro settle for ved ment simila date Indexions ction (RMB’ transa (RMB’0000) ctions 0000) quota meth r(Y/N) ods transa ctions Raw China fuel Securiti Shoug power es ang Cash Journal Group Paren Relate energy t d product Mark Mark at 11 Securiti and 4624 5149 bank Mark Dece es its comp purch ion et et No et any ase living price price 576 001 and price mber Times subsid enginee on 2024 Shangh iaries ring hand ai services Securiti etc. esNews 59Beijing Shougang Co. Ltd. Annual Report 2025 Juchao Informa tion Networ k (http:// www.c ninfo.co m.cn) Shoug ang Steel Cash Group Paren Relate solid at 11 and t d waste Mark Mark 1085 2469 bank Mark comp et et No et Dece Ditto its any sales power 75 81 and energy price price on price mber subsid 2024 iaries etc. hand Raw Other Joint fuel Cash relate ventu Relate power at 11 d re d energy Mark Mark 1836 2386 bank Mark Dece partie associ purch product et et price price 516 040 No and et mber Ditto s ate ase ion on price 2024 services hand etc.Other Joint Cash relate ventu Relate Steel at 11 d re d power Mark Mark et et 4331 4166 Y bank Mark et Dece Ditto partie associ sales energy price price 26 76 and mber s ate etc. on price 2024 hand Total -- -- 7002 -- 8198793 698 -- -- -- -- -- Details of large sales returns None The Company has estimated the total value of daily related party transactions expected to The Company classifies the daily occur. The Proposal of Beijing Shougang Co. Ltd. on the Estimated Amount of Daily Related related transactions by category Party Transactions for the Year 2025 was considered and approved at the 12th Meeting of and estimates the transaction the 8th Board of Directors in 2024 and was subsequently submitted to and approved by the amount that will take place in the Company’s 3rd Extraordinary General Meeting of Shareholders for the Year 2024 on 27 current period and discloses the December 2024. The total transaction amount approved by the shareholders' meeting for actual transaction amount (if any) this period is RMB 81986.98 million with a total amount of RMB 70027.93 million incurredwhich does not exceed the approved limit. Please refer to Section VIII or specific information on related parties and related transactions.The reason for the material difference between the transaction price and the market reference N/A price (if applicable) 2. Related party transactions by assets or equity acquisition and disposal □Applicable □Non-applicable Apprais Book ed Related Gains value of Conten Pricing value of transac and the Transfe Transac ts of principl the tion losses Disclos Disclos Related Relatio transfer r price tion related e of transfer settlem on ure ure party nship red (RMB’0 type transac transac red ent trading date index assets 000) tions tion assets method (RMB’0 (RMB’0 (RMB’0 s 000) 000) 000) Shouga Parent Equity Acquisit Valuati Cash at 14699.15036.15036. ng compa acquisit ion of a on bank 0 076464 Group ny ion stake in using and on 60Beijing Shougang Co. Ltd. Annual Report 2025 Co. Hebei the hand Ltd. Shouga asset- ng based Jingtan approa g ch Machin ery Co.Ltd.Reasons for any significant discrepancy between the transfer price and the book N/A value or appraised value (if any) This equity acquisition facilitates the concentration of resources in the Tangshan region to foster the development of key industries strengthens business synergies Impact on the Company’s operating and resource integration with Jingtang Machinery and is in line with the Company’s results and financial position long-term development strategy. Once the transaction is completed it will help to increase the Company’s net profit attributable to shareholders.Where the relevant transaction involves performance targets the extent to N/A which these targets were met during the reporting period 3. Related transactions of joint external investment □ Applicable √ Non-applicable No related party transactions in respect of joint external investment during the reporting period. 4. Related creditor's rights and debts □Applicable □Non-applicable Whether the Company had non-operating contact of related credit and debt □ YES √ NO No related creditor's rights and debts in the reporting period 5. Transactions with related financial companies □Applicable □Non-applicable Amount incurred in current period Maximum daily Range of Opening Total Closing Relationsh Total deposit Related party deposit limit deposit balance withdrawalamount of balanceip (RMB’0000) interest rate (RMB’0000) amount ofcurrent (RMB’0000) current period period (RMB’0000) (RMB’0000) Shougang Under the Group control of Finance Co. the same 1700000.00 1.25%-1.6% 876919.44 13485901.8 13306436.3parent 6 4 1056384.96Ltd. company Loan Amount incurred in current period Range of Opening Total Closing Loan amount Total loan Related party Relationship loan interest balance repayment (RMB’0000) amount of balance rate (RMB’0000) amount ofcurrent (RMB’0000) current period period (RMB’0000) (RMB’0000) 61Beijing Shougang Co. Ltd. Annual Report 2025 Shougang Under the Group control of Finance Co. the sameparent 3051200.00 1.5%-2.75%1487241.411747847.161894049.571341039.00 Ltd. company Credit granting or other financial services Total amount Actual amount Related party Relationship Business types (RMB’0000) (RMB’0000) Under the Shougang Group Finance Co. control of the Ltd. same parent Credit 3051200.00 1341039.00 company 6. Transactions between financial companies controlled by the Company and related parties □ Applicable √ Non-applicable No deposits loans credit granting or other financial transactions exist between the Company’s subsidiary finance company and its related parties. 7. Other significant related party transactions □ Applicable √ Non-applicable No other significant related party transaction of the Company during the reporting period.XV. Material contracts and implementation 1. Entrustment contract and leasing (1) Entrustment □ Applicable √ Non-applicable No entrustment during the reporting period. (2) Contract □ Applicable √ Non-applicable No contract during the reporting period. (3) Leasing □ Applicable √ Non-applicable No leasing during the reporting period. 2. Material guarantees □Applicable □Non-applicable Unit：RMB 0000 External guarantees of the Company and its subsidiaries (excluding guarantees to subsidiaries) Date of the related announ Amount Guarant Name of cement of Guarant Guarant Type of Counteree guarante Collatera guarante Term Fulfilled ee to obligee disclosi guarante ee date related ng the e provided e l (if any) e (if any) or not parties guarant or not ee amount Shougang Guarant (Qingdao) 18 ee of Steel 18 April Industry 2025 21000 Septemb 18445 joint and 1 No Y er 2025 several Co. Ltd. liability Ningbo Shougang 18 April 3 July Guarant 2025 4400 2025 2200 ee of 1 No YZhejin joint and 62Beijing Shougang Co. Ltd. Annual Report 2025 Steel several Materials liability Co. Ltd.Qian'an Sinochem Guarant Coal 17 May 8 August ee of Chemical 2025 35000 2025 35000 joint and 1 No Y Industrial several Co. Ltd. liability Total external guarantees Total actual external approved during the 60400 guarantees during 55645 reporting period the reporting period (A1) (A2) Total external Balance of total guarantees actual guarantees at approved at the end 60400 the end of the 55645 of the reporting reporting period period (A3) (A4) Guarantees between the Company and its subsidiaries Date of the related announ Amount Guarant Name of cement of Guarant Guarant Type of Counter ee to obligee disclosi guarante ee date ee guarante Collatera Fulfilled provided e l (if any) guarante Term related ng the e e (if any) or not parties guarant or not ee amount Shanghai Shougang Guarant Steel & 18 April ee of Iron 2025 8000 joint and 1 No Y Trading several Co.Ltd. liability Total amount of Total amount of guarantee provided guarantee provided for subsidiaries for subsidiaries approved during the 8000 during the reporting 0 reporting period period (B1) (B2) Total amount of Total balance of guarantee provided guarantee provided for subsidiaries for subsidiaries as at approved as at the 8000 the end of the 0 end of the reporting reporting period period (B3) (B4) Guarantees between subsidiaries Date of the related announ Amount Guarant Name of cement of Guarant Guarant Type of Collatera Counter Fulfilled ee to obligee disclosi guarante ee date ee guaranteprovided e l (if any) guarante Term related ng the e e (if any) or not parties guarant or not ee amount Total corporate guarantees (i.e. total of the top three items) Total guarantees Total actual approved during the 68400 guarantees during 55645 63Beijing Shougang Co. Ltd. Annual Report 2025 reporting period (A1 the reporting period + B1 + C1) (A2 + B2 + C2) Total guarantees Balance of total approved at the end actual guarantees at of the reporting 68400 the end of the 55645 period (A3 + B3 + reporting period (A4 C3) + B4 + C4) Total guaranteed balance (i.e. A4 + B4 + C4) as a percentage of the Company’s net assets 1.11% Including: Balance of debt guarantees provided directly or indirectly to recipients of guarantees with gearing ratios exceeding 53445 70% (E) Total amount of the above three guarantees (D + E + F) 53445 3. Entrusted cash asset management (1) Entrusted wealth management □ Applicable √ Non-applicable No entrusted wealth management during the reporting period. (2) Entrusted loans □ Applicable √ Non-applicable No entrusted loans during the reporting period. 4. Other material contracts □ Applicable √ Non-applicable No other material contracts during the reporting period.XVI.Use of raised funds □ Applicable √ Non-applicable The Company has no use of raised funds during the reporting period.XVII. Explanation of other significant matters □Applicable □Non-applicable On 29 September 2025 the Company convened the 20th meeting of the 8th Board of Directors at which it considered and approved the Proposal on the and its Summary among other proposals; On 9 January 2026 the Company received the Approval on the Implementation of an Equity Incentive Plan by Beijing Shougang Co. Ltd. (Jing Guozi [2025] No. 76) from the Beijing State-owned Assets Supervision and Administration Commission forwarded by Shougang Group. The Beijing State-owned Assets Supervision and Administration Commission has in principle approved the Company’s implementation of the equity incentive plan; On 20 January 2026 the Company convened the 2nd Board Meeting of the 9th Board of Directors at which it considered and approved the Proposal on the and its Summary amongst other proposals; On 6 February 2026 the Company convened its 1st extraordinary general meeting of 2026 at which it considered and approved amongst other resolutions the Resolution on the and its Summary; On 6 March 2026 the Company convened the 3rd Meeting of the 9th Board of Directors at which it considered and approved the Proposal of Beijing Shougang Co. Ltd. on the Granting of Stock Options and Restricted Shares to Incentive Recipients. It was determined that 6 March 2026 would be the grant date and 71073612 stock options were granted to 501 eligible incentive recipients at an exercise price of RMB 4.22 per share; 71073612 restricted shares were granted at a grant price of RMB 2.53 per share.In accordance with the share repurchase plan approved by the Board of Directors the Company utilised 64Beijing Shougang Co. Ltd. Annual Report 2025 its own funds and a special loan for share repurchases to repurchase a total of 71073612 shares through centralised competitive bidding; these shares have been used in their entirety to implement the share incentive plan. The specific content is detailed in the relevant announcement issued by the Company’s Board of Directors.XVIII. Significant matters of subsidiaries of the Company □ Applicable √ Non-applicable 65Beijing Shougang Co. Ltd. Annual Report 2025 SECTION VI. MOVEMENTS IN SHARE CAPITAL AND SHAREHOLDERS I. Share movement 1. Share movement Unit: share Before change Changes in current (+/-) After change Shares Share Bon transfe Quantity Proportio s us rredn issue issu from Others Sub-total Quantity Proporti on d e reserve s I. Restricted shares 1266717373 16.29% -1034431019 -1034431019 232286354 3.00% 1. State ownership 2. State-owned corporation shares 1247703723 16.05% -1015417369 -1015417369 232286354 3.00% 3. Shares held by other domestic investors 19013650 0.24% -19013650 -19013650 0 Of which: Shares held by domestic legal persons Shares held by domestic natural persons 19013650 0.24% -19013650 -19013650 0 4.Foreign ownership Of which: Shares held by overseas legal persons Shares held by overseas natural persons II. Non-restricted shares 6507263647 83.71% 1015417369 1015417369 7522681016 97.00% 1. RMB ordinary shares 6507263647 83.71% 1015417369 1015417369 7522681016 97.00% 2. Domestic listed foreign shares 3. Overseas listed foreign shares 4. Others III. Total amount of shares 7773981020 100.00% -19013650 -19013650 7754967370 100.00% Reasons of shares movements □Applicable □Non-applicable According to the 2021 Incentive Plan with the approval of the company's shareholders meeting the company has repurchased and cancelled 19013650 restricted shares during the reporting period and share capital of the company have been reduced from 7773981020 shares to 7754967370 shares.Approval of share movements □Applicable □Non-applicable During the reporting period the repurchase and cancellation of restricted shares by the Company has been considered and approved by the annual general meeting of 2024 on 6 June 2025.Transfer of shares arising from changes in shareholding □Applicable □Non-applicable The restricted shares repurchased by the company have been cancelled in accordance with regulations.Influences of shares movements on basic EPS diluted EPS net assets per share attributable to common shareholders of the 66Beijing Shougang Co. Ltd. Annual Report 2025 company and other financial indicators for both the latest year and the latest period □ Applicable √ Non-applicable Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators □ Applicable √ Non-applicable 2. Movements of restricted shares □Applicable □Non-applicable Unit: share Restricted Name of Restricted shares shares Restricted Restricted at the beginning increased shares released shares at the Date of shareholders during the end of period Reason for restriction release fromof period during the period restrictionperiod The commitments made by Shougang Group when the Company was first restructured are still in the process of being fulfilled. For details The please refer to the restrictionShougang shall be lifted Group Co. 1247703723 0 1015417369 232286354 company's Ltd. announcements in once the China Securities commitment Journal Securities has been Times Shanghai fulfilled Securities News and CNINFO (http://www.cninfo.co m.cn) on 28 September 2019.In accordance with relevant regulations Shougang the Company's 2021 Directors restricted stock senior incentive plan will Repurchased executives arrange the lock-up and cancelled and other 19013650 0 19013650 0 period of the restricted in accordance equity stock grants. For with incentive details please refer to regulations targets the relevantannouncement issued by the Company on 13 November 2021.Total 1266717373 0 1034431019 232286354 -- -- II. Securities issuance and listing 1. Security offering (without preferred stock) in reporting period □ Applicable √ Non-applicable 2. Changes of total shares and shareholders structure as well as explanation on changes of assets and liability structure □Applicable □Non-applicable According to the 2021 Incentive Plan with the approval of the company's shareholders meeting the company has repurchased and cancelled 19013650 restricted shares during the reporting period and the total number of shares in the Company was reduced from 7773981020 shares to 7754967370 shares. There were no changes to the Company’s shareholder structure or its assets and liabilities. 67Beijing Shougang Co. Ltd. Annual Report 2025 3. Current internal staff shares □ Applicable √ Non-applicable III. Shareholders and the actual controller 1. Amount of shareholders and shareholding Unit: share Total common Total commonstock shareholders Total preference Total preference stock shareholders with voting shareholders 80572 at end of last shareholders with rights recovered at end in reporting month before 82050 voting rights recovered 0 at end of reporting of last month before 0 period-end annual report period (if any) annual report discloseddisclosed (if any) Shareholders holding above 5% or top 10 shareholders Nature of Shareho Total Shares pledged or frozen Name of shareholders sharehol lding shareholders at Changes in Amount of Amount of der ratio the end of report period restricted unrestricted Quanti report period shares held shares held Status ty State- Shougang Group Co. Ltd. ownedlegal 57.01 4420769800 0 232286354 4188483446 N/A 0 entity State- China Baowu Steel Group owned Corporation Ltd. legal 10.23 793408440 0 0 793408440 N/A 0 entity State- Beijing Jingtou Investment owned Holding Co. Ltd. legal 9.55 740940679 0 0 740940679 N/A 0 entity State- Beijing Jing Guorui Soe Reform owned and Development Fund (L.P.) legal 6.37 493958306 0 0 493958306 N/A 0 entity Sunshine Life Insurance Co. Ltd. - Traditional insurance products Others 0.99 76692529 0 0 76692529 N/A 0 Sunshine Life Insurance Co. Ltd. - Dividend insurance products Others 0.72 56159243 0 0 56159243 N/A 0 Hong Kong Securities Clearing Overseas Company Limited legal 0.70 54154703 20487649 0 54154703 N/A 0entity Zhongtai SECURITIES Co. Ltd. – Huaxia Guozheng Free Cash Flow Trading Open-end Index Others 0.39 30341484 30341484 0 30341484 N/A 0 Securities Investment Fund Agricultural Bank of China Limited - China Securities 500 Trading Open-end Index Others 0.30 22913752 1347900 0 22913752 N/A 0 Securities Investment Fund GF Securities Co. Ltd. – ChinaAMC FTSE China A-Share Free Cash Flow Focus Trading Others 0.25 19658794 19658794 0 19658794 N/A 0 Open-end Index Securities Investment Fund Strategic investor or general legal person becoming a top-10 ordinary shareholder N/A due to rights issue (if any) (see Note 3) Subsidiary of Shougang Group holds 0.69% of Baosteel Co. Baowu Group Co. Ltd. and its persons Related or acting-in-concert parties among acting in concert hold 62.30% of Baosteel Co. Except which Shougang Group has no relationship the shareholders above or concerted acting relationship with other top 10 shareholders. The relationship between other shareholders or the relationship of cooperators is unknown.Above shareholders involved in entrusting N/A 68Beijing Shougang Co. Ltd. Annual Report 2025 / being entrusted with voting rights and giving up voting rights Special account for share repurchases As at 31 December 2025 the special securities account for share repurchases held 26682716 among the top 10 shareholders (if any) shares representing 0.34% of the Company’s total share capital.Shareholding of the top 10 shareholders unrestricted shares held Amount of Type of shares Name of shareholders unrestricted shares held at period-end Type of shares Quantity Shougang Group Co. Ltd. 4188483446 RMB ordinary shares 4188483446 China Baowu Steel Group Corporation Ltd. 793408440 RMB ordinary shares 793408440 Beijing Jingtou Investment Holding Co.Ltd. 740940679 RMB ordinary shares 740940679 Beijing Jing Guorui Soe Reform and Development Fund (L.P.) 493958306 RMB ordinary shares 493958306 Sunshine Life Insurance Co. Ltd. - Traditional insurance products 76692529 RMB ordinary shares 76692529 Sunshine Life Insurance Co. Ltd. - Dividend insurance products 56159243 RMB ordinary shares 56159243 Hong Kong Securities Clearing Company Limited 54154703 RMB ordinary shares 54154703 Zhongtai SECURITIES Co. Ltd. – Huaxia Guozheng Free Cash Flow Trading Open- 30341484 RMB ordinary shares 30341484 end Index Securities Investment Fund Agricultural Bank of China Limited - China Securities 500 Trading Open-end Index 22913752 RMB ordinary shares 22913752 Securities Investment Fund GF Securities Co. Ltd. – ChinaAMC FTSE China A-Share Free Cash Flow Focus Trading Open-end Index Securities 19658794 RMB ordinary shares 19658794 Investment Fund Connected associated relationship or acting in concert among the top 10 shareholders holding tradable shares Subsidiary of Shougang Group holds 0.69% of Baosteel Co. Baowu Group Co. Ltd. and its persons without selling restrictions and between acting in concert hold 62.30% of Baosteel Co. Except which Shougang Group has no relationship the top 10 shareholders holding tradable or concerted acting relationship with other top 10 shareholders. The relationship between other shares without selling restrictions and the shareholders or the relationship of cooperators is unknown.top 10 shareholders Top 10 ordinary shareholders involved in securities margin trading (if any) N/A Shareholders holding more than 5% of shares top 10 shareholders and top 10 shareholders with unrestricted shares in circulation participating in the lending of shares in the transfer and financing business □ Applicable √ Non-applicable Top 10 shareholders and top 10 shareholders with unrestricted shares outstanding change from the previous period due to lending/returning of transfer and finance □Applicable□Non-applicable Whether top ten common stock shareholders or top ten common stock shareholders with unrestricted shares have a buy-back agreement dealing during the reporting period □ YES √ NO The top ten common stock shareholders or top ten common stock shareholders with unrestricted shares of the Company have no buy-back agreement dealing during the reporting period. 2. Controlling shareholders Nature of controlling shareholders: local state-owned holding Type of controlling shareholders: legal person Name of Legal controlling representative Date of shareholde / person in establishment Organization code Main businesses 69Beijing Shougang Co. Ltd. Annual Report 2025 rs charge of the company Industry construction geological examination transportation foreign trade post and telecommunications finance and insurance scientific research and comprehensive technical services domestic commerce public catering material supply and marketing warehousing real estate residential services consulting services leasing agriculture forestry animal husbandry and fishery (excluding business without special permission); authorized operation and management of state-owned assets; hosted Shougang Daily newspaper; design and production of TV Shougang advertisements; use of self-owned TV stations to Group Co. Zhao Minge 13 May 1982 91110000101120001 publish advertisements; design and production of Ltd. 5 print advertising; use of self-owned Shougang Dailyto publish advertisements; sewage treatment and recycling; seawater desalination; literary and artistic creation and performance: sports project management (excluding high-risk sports projects); stadium management; Internet information services; Municipal solid waste treatment. (enterprises shall independently choose business projects and carry out business activities in accordance with the law; municipal solid waste treatment Internet information services and projects subject to approval in accordance with the law after licensing; they shall not engage in business projects prohibited or restricted by local policies) Shareholdings of controlling shareholders who have 1. Domestic: (1) Hua Xia Bank Co. Ltd. holds 21.68%; (2) Beiqi Foton Motor Co. Ltd. holds 0.15%; (3) control or BAIC MOTOR Corporation. Ltd. (H-share) holds 12.83%.hold shares in 2. Overseas: (1) Capital Industrial Financial Services Group Limited holds 61.35%; (2) Shoucheng other Holdings Limited holds 17.95%; (3) Shougang Fushan Resources Group Ltd. holds 29.99%; (4) Shougang Century domestic or Holdings Limited holds 45.34%; (5) Global Digital Creations Holdings Limited holds 41.19%; (6) CWT International overseas listed Limited，holds 3.11%; (7) Newton Resources Limited holds 27.46%; (8) Sunshine Insurance Group Co. Ltd. holdscompanies 0.58%.during the reporting period Controlling shareholder turnover during the reporting period □ Applicable √ Non-applicable There were no changes of controlling shareholders during the reporting period. 3. Actual controller of the Company and persons acting in concert Nature of actual controller: local management agency of state-owned assets Type of actual controller: Actual controller turnover during the reporting period □ Applicable √ Non-applicable The actual controller of the company was not changed during the reporting period.Block diagram of property rights and controlling relations between the Company and actual controllers is as follows: 70Beijing Shougang Co. Ltd. Annual Report 2025 Actual controller controlling the company through trust or other asset management methods □ Applicable √ Non-applicable 4. The number of shares pledged by the controlling shareholder or the largest shareholder of the Company and persons acting in concert with it reaches 80% of the number of shares held by them in aggregate □ Applicable √ Non-applicable 5. Other legal person shareholders with over 10% shares held □Applicable □Non-applicable Legal representative Name of legal person / person in Date of Registered shareholders charge of the establishment capital Main businesses company Licensed project: Retail of publications; Wholesale of publications. (For projects that require approval according to law business activities can only be carried out with the approval of relevant departments. The specific business projects shall be subject to the approval documents or licenses of relevant departments.) General projects: engaging in investment RMB activities with self-owned funds; InvestmentChina Baowu Steel Group Corporation Ltd. Hu Wangming 1 January 1992 52897.121 management; Asset management services for million self-owned fund investment; Enterpriseheadquarters management; Land use right leasing; Nonresidential real estate leasing; Human resources services (excluding occupational intermediary activities and labor dispatch services); Enterprise management consulting. (Except for projects that require approval according to law business activities shall be conducted independently based on the business license in accordance with the law) 6. Limitation on reducing the holdings of shares of controlling shareholders actual controllers restructuring side and other commitment subjects □ Applicable √ Non-applicable IV. The implementation of share repurchases during the reporting period Progress of share repurchase 71Beijing Shougang Co. Ltd. Annual Report 2025 As at 31 December 2025 the Company had repurchased 26682716 shares through a dedicated securities account for share repurchases via centralised competitive bidding representing 0.3441% of the Company’s current total share capital. The highest transaction price was RMB 4.99 per share with the lowest transaction price being RMB 4.06 per share. The total amount paid was RMB 116640372.07 (excluding transaction fees). The funds for shares repurchase in this instance were drawn from the Company’s own funds and a special loan for share repurchases; the repurchase price shall not exceed the upper limit of RMB 6.50 per share as set out in the repurchase plan. The share repurchase complies with the relevant laws and regulations and is in accordance with the Company’s established share repurchase plan.Implementation progress of reducing and repurchasing shares through centralized bidding □Applicable□Non-applicable V. PREFERRED SHARES □ Applicable √ Non-applicable The Company did not have any preferred shares during the reporting period. 72Beijing Shougang Co. Ltd. Annual Report 2025 SECTION VII. BONDS □Applicable □Non-applicable I. Enterprise bonds □ Applicable √ Non-applicable The Company did not have any enterprise bonds during the reporting period.II. Corporate bonds □Applicable □Non-applicable 1. Basic information on corporate bonds Unit：RMB 0000 Principal Bond Bond Interest andBond name abbrevi Issue date starting Maturity Bond Interestcode date balance rate interest Trading ation date payment venue method Beijing Shougang Co.Ltd. 2025 Public Issuance of Interest is Green paid Technology 25Shou annually Innovation qianGK 52433 30 June 2 July 2 July with the Shenzhen Corporate 02 9.SZ 2025 2025 2030 50000 1.92% principal StockExchange Bonds for repaid in Professional full at Investors maturity.(Phase I) (Series II) In accordance with the Securities Law and other relevant regulations the bonds in this issue are offered exclusively to professional institutional investors; retail investors and Investor suitability arrangements (if individual investors even if they are professional investors are not permitted to any) subscribe for them. Following the listing of this bond issue investor suitabilityrequirements will apply; trading will be restricted to professional institutional investors only. Any subscription or purchase by retail investors or individual investors acting as professional investors shall be deemed invalid.Applicable trading mechanisms Matching transaction; Negotiated transaction; Click transaction; Request-for-quotetransaction; Competitive bidding transaction Whether there is a risk of termination of listing and trading (if No any) and measures to deal with it Bonds overdue □ Applicable √ Non-applicable 2. Triggering and enforcement of issuer or investor option clauses and investor protection clauses □ Applicable √ Non-applicable 3. Situation of intermediaries Bond item name Name ofintermediary Office address Signed CPA Contact of intermediary Telephone Beijing Shougang Co. Ltd. 2025 Public Issuance of Everbright Green Technology Securities 1508 Xinzha Road Liu Yuxin 010- Innovation Corporate Bonds Company Jing’an District N/A Lu Hao 58377828 for Professional Investors Limited Shanghai Liang Zuming (Phase I) (Series II) Beijing Shougang Co. Ltd. GUOTAI 618 Shangcheng Gao Bo 010- 2025 Public Issuance of HAITONG Road China N/A Wang Xiao 56535902 73Beijing Shougang Co. Ltd. Annual Report 2025 Green Technology SECURITIES (Shanghai) Pilot Free Hua Hongqing Innovation Corporate Bonds Co. Ltd. Trade Zone Zhang Huilun for Professional Investors (Phase I) (Series II) Room 401 Block B7 Beijing Shougang Co. Ltd. Qianhai Shenzhen- 2025 Public Issuance of Hong Kong Fund Green Technology Huatai United Town 128 Guiwan 010- Innovation Corporate Bonds Securities Co. 5th Road Nanshan N/A He Zeyu for Professional Investors Ltd. Subdistrict Qianhai 56839300 (Phase I) (Series II) Shenzhen-HongKong Cooperation Zone Shenzhen Beijing Shougang Co. Ltd. 27th and 28th 2025 Public Issuance of China Floors Tower 2 Green Technology International China World Trade Liu Zhanrui Innovation Corporate Bonds Capital Centre 1 N/A Wang Hongtai 010- Corporation Jianguomenwai Fan Ningning 65051166for Professional Investors (Phase I) (Series II) Limited Avenue Chaoyang Wang Mengwen District Beijing Beijing Shougang Co. Ltd. 2025 Public Issuance of Green Technology China Building 4 66 Anli Liu Chuyu 010- Innovation Corporate Bonds Securities Road Chaoyang N/A Meng Shaohua for Professional Investors Co.Ltd. District Beijing Gao Ziqing 56052273 (Phase I) (Series II) Beijing Shougang Co. Ltd. 2025 Public Issuance of CITIC Securities Green Technology CITIC Securities Tower No. 48 Wu Xiaojing 010- Innovation Corporate Bonds Co.Ltd. Liangmaqiao Road N/A Wang Xiaofeng 60836985 for Professional Investors Chaoyang District Wang Xiaoyu (Phase I) (Series II) Beijing Room 618 No. 2 Beijing Shougang Co. Ltd. Tengfei 1st Street 2025 Public Issuance of China-Singapore Green Technology GF Securities Guangzhou 010- Innovation Corporate Bonds Co. Ltd. Knowledge City N/A Liu Liangqi 56571688 for Professional Investors Huangpu District (Phase I) (Series II) Guangzhou Guangdong Province Beijing Shougang Co. Ltd. Floors 22–25 Tower 2025 Public Issuance of B Ping An Financial Green Technology Ping An Centre 5023 Yitian Wang Guan 010- Innovation Corporate Bonds Securities Ltd. Road Futian N/A Zhao Zhijian 56800262 for Professional Investors Subdistrict Futian (Phase I) (Series II) District Shenzhen Beijing Shougang Co. Ltd. 8/F Block A Fu Hua 2025 Public Issuance of ShineWing Mansion No. 8 Green Technology Certified Public Chaoyangmen Guo Yong Guo Yong 010- Innovation Corporate Bonds Accountants Beidajie Dongcheng Lu Min Lu Min 65542288 for Professional Investors (LLP) District Beijing P.R.(Phase I) (Series II) China Beijing Shougang Co. Ltd. 5th Floor Saitei 2025 Public Issuance of ZhitongAccounting Plaza No.22Green Technology Innovation Corporate Bonds Firm (Special Jianguomenwai Li Dan Li Dan 010- Avenue Chaoyang Yu Qike Yu Qike 85665231 for Professional Investors General (Phase I) (Series II) Partnership) District Beijing China Beijing Shougang Co. Ltd. 34th Floor Office 2025 Public Issuance of Jingtian & Tower 3 Huamao Green Technology Gongcheng Center No. 77 N/A Deng Qing 010- Innovation Corporate Bonds Law Firm Jianguo Road Yang Yao 58091000 for Professional Investors Chaoyang District 74Beijing Shougang Co. Ltd. Annual Report 2025 (Phase I) (Series II) Beijing China Beijing Shougang Co. Ltd. Dongfang Floors 45 46 & 47 2025 Public Issuance of Jincheng Tower A Ping An Green Technology International Happiness Center Qiao Yanyang 010- Innovation Corporate Bonds Credit Lize Financial N/A Jia Yuanyuan 62299800 for Professional Investors Evaluation Co. Business District (Phase I) (Series II) Ltd. Fengtai DistrictBeijing Beijing Shougang Co. Ltd. 2025 Public Issuance of Beijing Orient 45th Floor Tower A Green Technology Jincheng Data Ping An Xingfu Innovation Corporate Bonds Consulting Co. Centre No. 24 Lize N/A Wang Lu 010- for Professional Investors Ltd. Road Fengtai Gao Dong 83435886 (Phase I) (Series II) District Beijing Whether there were any changes in the above organizations during the reporting period □ YES √ NO 4. Use of raised funds Unit：RMB 0000 Whether it Actual use of Operati is consistent raised funds (classified by Actual on of Rectifica with the Bond Total Agreed expend Amo the tion of purpose Bond abbre amount purpose of Amo purpose unt special irregular plan of use code viatio of funds the funds unt excluding iture by not account use of and other n raised raised used temporary catego yet for funds agreementsworking ry used funds raised (if committedcapital raised (if any) to in the injections) any) offering prospectus Replace the expenditure Replace the of own expenditure funds on of own fundson green 25 green projects 524339. Shou projects SZ Qian 50000 incurred 500 incurred within the 00 within the 12 50000 0 Normal None Y GK02 12 months months prior prior to the to the issue issue of the of the current current bonds bonds Funds raised for construction projects □Applicable □Non-applicable Whether the net income from the Whether any project during the Changes in the material changes reporting period project’s net have occurred in Changes has fallen by more income theto the than 50% impact on the Bond the projectduring the project compared with the issuer’s debt-Bond abbre Project progress and operational reporting period and figures disclosed in repaymentcode viatio benefits that may affect progress the prospectus or capacity andn the plans for the of the similar documents investors’ allocation and program or whether any interests and use of the raised me other significant the measures funds adverse taken to addressdevelopments these issues have occurred during the 75Beijing Shougang Co. Ltd. Annual Report 2025 reporting period that may affect the project’s operational performance As at the end of the reporting 25 period 16 of the 20 green 52433 Shou projects funded by the current 9.SZ Qian bond issue had commenced No None No None GK02 operations whilst the remainingfour were under construction in accordance with the schedule.Changes in the use of funds raised from the above bonds by the Company during the reporting period □ Applicable √ Non-applicable 5. Adjustments to credit rating results during the reporting period □ Applicable √ Non-applicable 6. Implementation changes and impact on the interests of bond investors of guarantees repayment plans and other repayment security measures during the reporting period □ Applicable √ Non-applicable III. Debt financing instruments for non-financial corporations □Applicable □Non-applicable 1. Information on debt financing instruments for non-financial corporations Unit：RMB 0000 Principal Bond Interest Bond name abbreviati Bond code Issue date starting Maturity Bond Intere and st interest Trading on date date balance rate payment venue method Beijing Shougang 25 One-off Co. Ltd. Shougang principal National 2025 First Co. 21 22 and Science and SCP001 12582525 October October 21 March Interbank 202520252026 50000 1.69 interest Technology (Kechuan payment Bond Market Innovation g Bonds) upon Bond maturity Investor suitability arrangements (if any) Institutional investors in the national interbank bond market (except for purchasersprohibited by national laws and regulations) Applicable trading mechanisms Trading system of debt financing instruments for non-financial corporations Whether there is a risk of termination of listing and trading (if any) and measures None to deal with it Bonds overdue □ Applicable √ Non-applicable 2. Triggering and enforcement of issuer or investor option clauses and investor protection clauses □ Applicable √ Non-applicable 3. Situation of intermediaries Bond item name Name ofintermediary Office address Signed CPA Contact of intermediary Telephone Beijing Shougang Co. No. 345 Ningdong Ltd. 2025 First Science Bank of NingboCo. Ltd. Road Yinzhouand Technology District Ningbo N/A Xie Zhongyuan 0574- 87857211 Innovation Bond City Zhejiang Beijing Shougang Co. China No. 25 Financial N/A Wang Wenjun 010- 76Beijing Shougang Co. Ltd. Annual Report 2025 Ltd. 2025 First Science Construction Bank Street Xicheng 67594276 and Technology Corporation District Beijing Innovation Bond 8/F Block A Fu Beijing Shougang Co.Ltd. 2025 First Science ShineWing Hua Mansion No.Certified Public 8 Chaoyangmen Guo Yong Guo Yong 010-and Technology Beidajie Lu Min Lu Min 65542288 Innovation Bond Accountants (LLP) Dongcheng District Beijing P.R. China 5th Floor Saitei Beijing Shougang Co. Zhitong Plaza No.22 Ltd. 2025 First Science Accounting Firm Jianguomenwai Li Dan Li Dan 010- and Technology (Special General Avenue Chaoyang Yu Qike Yu Qike 85665231 Innovation Bond Partnership) District Beijing China Beijing Shougang Co. 315 3rd Floor No.Ltd. 2025 First Science Beijing Huaxia 15 Xiaguangli 010- and Technology Law Firm Chaoyang District N/A Gao Hui 68636650 Innovation Bond Beijing Whether there were any changes in the above organizations during the reporting period □ YES √ NO 4. Use of raised funds Unit：RMB 0000 Whether it is consistent with the Total Agreed Operation of Rectification purpose Bond item amount of purpose of Amount not the special of irregular plan of use name funds the funds Amount used yet used account for use of funds and other raised raised funds raised raised (if agreements(if any) any) committed to in the offering prospectus Operation Beijing For standards of Shougang Co. repayment the Ltd. 2025 First of the Company's Science and 50000 issuer's special Technology interest- 50000 0 account for None Y Innovation bearing debt funds raised Bond during thereporting period Funds raised for construction projects □ Applicable √ Non-applicable Changes in the use of funds raised from the above bonds by the Company during the reporting period □ Applicable √ Non-applicable 5. Adjustments to credit rating results during the reporting period □ Applicable √ Non-applicable 6. Implementation changes and impact on the interests of bond investors of guarantees repayment plans and other repayment security measures during the reporting period □ Applicable √ Non-applicable IV. Convertible corporate bonds □ Applicable √ Non-applicable The Company did not have any convertible corporate bonds during the reporting period. 77Beijing Shougang Co. Ltd. Annual Report 2025 V. Loss in the scope of the consolidated statement of income for the reporting period exceeding 10% of the net assets at the end of the previous year □ Applicable √ Non-applicable VI. Overdue interest-bearing debts other than bonds at the end of the reporting period □ Applicable √ Non-applicable VII. Any violation of rules and regulations during the reporting period □ YES √ NO VIII.Major accounting data and financial indicators of the Company for the past two years as at the end of the reporting period Unit：RMB 0000 Increase/decrease at the end Item End of the reporting period End of previous year of the reporting period over the end of the previous year Current ratio 0.54 0.53 1.89% Gearing ratio 55.73% 58.54% -2.81% Quick ratio 0.36 0.34 5.88% Increase/decrease in the Current reporting period Same period last year current reporting period over the same period last year Net profit after non-recurring gains and losses 99193.93 21951.71 351.87% EBITDA all debt ratio 14.73% 12.89% 1.84% Interest coverage ratio 2.58 1.64 57.32% Cash interest coverage ratio 11.52 6.69 72.20% EBITDA interest coverage ratio 12.60 8.47 48.76% Loan repayment rate 100.00% 100.00% Interest repayment rate 100.00% 100.00% 78Beijing Shougang Co. Ltd. Annual Report 2025 SECTION VIII. FINANCIAL REPORT I. Auditor’s report Audit opinion type Standard unqualified opinion Date of signing of the audit report 16 April 2026 Name of the audit firm ShineWing Certified Public Accountants (LLP) Audit report reference number XYZH/2026BJAA16B0334 Name of Certified Public Accountant Guo Yong Lu Min Main Body of Auditor’s Report To the Shareholders of Beijing Shougang Co. Ltd.: 1. Opinion We have audited the financial statements of Beijing Shougang Co. Ltd. (the Company) which are comprised of the consolidated and parent company statements of financial position as of 31 December 2025 and the consolidated and parent company income statements the consolidated and parent company statements of changes in equity and the consolidated and parent company statements of cash flows for the year then ended and notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects the consolidated and parent company’s financial position of the Company as of 31 December 2025 and the consolidated and parent company’s financial performance and cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises. 2. Basis for Opinion We conducted our audit in accordance with China Standards on Auditing. Our responsibilities underthose standards are further described in the “Auditor’s Responsibilities for the Audit of the FinancialStatements” section of our report. We are independent of the Company in accordance with the independence requirements applicable to the audit of financial statements of public-interest entities set out in the Chinese Standards on Independence for Certified Public Accountants and the Code of Ethics for Chinese Certified Public Accountants and have fulfilled our other responsibilities regarding independence and professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 3. Key Audit Matters Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. 1. Recognition of Revenue Key Audit Matter How our audit addressed the Key Audit Matter For further details please refer to (1) Understanding and testing the key internal controls Note "III. 23. Recognition and related to revenue and assessing the appropriateness and measurement of revenue" and Note "V. effectiveness of key control executions. 43. Revenue and cost of sales" to the (2) Performing analysis procedures including comparisons financial statements. of the current period’s gross profit of major products with In 2025 the operating revenue of that of the prior period and the analysis of revenue 79Beijing Shougang Co. Ltd. Annual Report 2025 the Company was RMB 10.2918 billion. fluctuations to check for any anomalies.Considering that the revenue has a (3) Obtaining sales details of the current year selecting significant impact on the financial revenue transaction samples recorded in the current year statements of the Company and steel checking the supporting documents such as sales contracts price could exert a great influence on orders delivery orders logistics bills invoices and receipts the profits of the Company since the to evaluate whether the related revenue recognition is in steel industry is a cyclical industry we compliance with the Company's accounting policies.regarded the recognition of revenue as (4) Selecting sales contract samples to identify contractual a key audit matter. terms and conditions related to the transfer of control of goods and to evaluate whether the point of time of revenue recognition of the Company complies with the requirements of the Accounting Standards for Business Enterprises. (5) Selecting customer samples to perform the confirmation procedures on sales revenue of the reporting period in conjunction with notes receivable accounts receivable financing receivables contract liabilities and etc. (6) Checking the appropriateness of disclosures in relation to revenue in the financial report. 2. The provision for inventory impairments Key Audit Matter How our audit addressed the Key Audit Matter (1) Assessing the design and operation of internal controls The related information is related to the provision for inventory impairments.disclosed in “III. 12. Inventories” and (2) Checking the price fluctuations of major raw materials “V. 7. Inventories” in the notes to the work-in-process and goods in stock to determine the risk of financial statements. inventory impairments.The book balance of inventory of (3) Conducting inventory monitoring of important the Company at the end of the period inventories examining the quantities and conditions of amounted to RMB 10.605 billion with a inventories and paying attention to the status of provision for inventory impairments of inventories with a longer inventory age and the provision RMB 276 million. Inventory had been for impairments.regarded as the material part of the (4) Obtaining the table of the provision for inventory current assets of the Company at the impairments of the Company reviewing the calculation end of the period and the provision for process and results of the provision to check compliance inventory impairments referred to the with the relevant accounting policies and analyzing the application of management’s adequacy of the provision for inventory impairments.accounting estimates. Hence we have (5) Testing the accuracy of the calculation of the net identified the provision for inventory realizable value of inventories of the Company.impairments as a key audit matter. (6) Checking the appropriateness of disclosures in relationto the net realizable value of inventories in the financial report. 4. Other Information The management of the Company (the management) is responsible for the other information. The other information comprises the information included in the Annual Report of 2025 other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other 80Beijing Shougang Co. Ltd. Annual Report 2025 information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.Based on the work we have performed if we conclude that there is a material misstatement of other information we are required to report that fact. We have nothing to report in this regard. 5. Responsibilities of the Management and Those Charged with Governance for the Financial Statements The management is responsible for the preparation and fair presentation of the financial statements in accordance with Accounting Standards for Business Enterprises and designing implementing and maintaining internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process. 6. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatements whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with China Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are generally considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with China Standards on Auditing we exercise professional judgment and maintain professional skepticism throughout the audit. We also: (1) Identify and assess the risks of material misstatements of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control. (2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. (4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However further events or conditions may cause the Company to cease to continue as a going concern. 81Beijing Shougang Co. Ltd. Annual Report 2025 (5) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. (6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards (if any).From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless the law or regulation precludes public disclosure about the matters or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.Chinese Certified Public Accountant: Guo ShineWing Certified Public Accountants (LLP) Yong (Engagement partner) Chinese Certified Public Accountant: Lu Min Beijing China 16 April 2026 II. Financial statements The financial statements in the notes are presented in RMB Yuan. 1. Consolidated Statement of Financial Position Prepared by: Beijing Shougang Co. Ltd.Unit: RMB Yuan Item Closing balance Opening balance Current assets: Cash at bank and on hand 10842460836.85 8826637471.96 Provision for settlement Lendings to banks and other financial institutions Financial assets held for trading Derivative financial assets Notes receivable 2793233520.08 4264328295.93 Accounts receivable 1669376228.53 1638506083.77 Financing receivables 2127981225.71 3626515941.48 82Beijing Shougang Co. Ltd. Annual Report 2025 Prepayments 2133271502.80 2075154843.34 Premiums receivable Reinsurance accounts receivable Receivable reserves for reinsurance Other receivables 13844968.27 4832231.47 Including: Interest receivable Dividends receivable 4900000.00 Buying back the sale of financial assets Inventories 10329511689.20 11407824092.03 Including: Data resources Contract assets Assets held for sale Current portion of non-current assets Other current assets 851899678.82 620415519.20 Total current assets 30761579650.26 32464214479.18 Non-current assets: Loans and advances granted Debt investments Other debt investments Long-term receivables Long-term equity investments 2093849485.50 2070713423.51 Other equity instruments investments 271443020.81 268404638.58 Other non-current financial assets 25944976.84 70218671.35 Investment properties Fixed assets 82509872123.34 87165864980.07 Construction in progress 2706288021.43 3263187574.42 Productive biological assets Oil and gas assets Right-of-use assets 458303069.01 468243465.30 Intangible assets 5689057153.36 5858564651.48 Including: Data resources 1108661.95 Development expenditures Including: Data resources Goodwill Long-term prepaid expenses 4947505.82 4420815.37 Deferred tax assets 412384451.59 413775485.80 Other non-current assets Total non-current assets 94172089807.70 99583393705.88 Total assets 124933669457.96 132047608185.06 Current liabilities: Short-term borrowings 21445498282.76 22251284791.74 Borrowings from the Central Bank Borrowings from banks and other financial institutions Financial liabilities held for trading Derivative financial liabilities Notes payable 3687000000.00 3834000000.00 Accounts payable 19216299331.11 20049182952.13 Receipts in advance Contract liabilities 4529764861.53 5101055378.93 Financial assets sold for repurchase Accept money deposits and interbank placement Acting trading securities Acting underwriting securities Employee benefits payable 809793999.88 733584393.19 Taxes payable 276016460.45 265491882.58 Other payables 276148030.11 413434600.33 83Beijing Shougang Co. Ltd. Annual Report 2025 Including: Interest payable Dividends payable Service charge and commission payable Reinsurance accounts payable Liabilities held for sale Current portion of non-current liabilities 2884730749.14 2680572602.44 Other current liabilities 4200682550.94 6147985216.01 Total current liabilities 57325934265.92 61476591817.35 Non-current liabilities: Provision reserves for insurance Long-term borrowings 7966470000.00 11864070000.00 Bonds payable 500000000.00 Including: Preferred shares Perpetual bonds Lease liabilities 463907672.86 465190839.65 Long-term payables 2100000.00 2100000.00 Long-term employee benefits payables 68616671.24 72720356.41 Provisions 6626572.00 1000000.00 Deferred income 625557215.63 563629799.28 Deferred tax liabilities 462792715.68 495856362.74 Other non-current liabilities 2200552060.52 2364112304.97 Total non-current liabilities 12296622907.93 15828679663.05 Total liabilities 69622557173.85 77305271480.40 Shareholders’ equity: Share capital 7754967370.00 7773981020.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 30218644706.21 30406718853.21 Less: Treasury shares 116640372.07 65694761.24 Other comprehensive income 190818294.00 188552639.99 Special reserve 56706143.90 45140519.27 Surplus reserve 1978886047.08 1961316319.60 General risk reserve Undistributed profits 10247310402.31 9447971388.81 Equity attributable to shareholders of the parent company 50330692591.43 49757985979.64 Non-controlling interests 4980419692.68 4984350725.02 Total shareholders’ equity 55311112284.11 54742336704.66 Total liabilities and shareholders’ equity 124933669457.96 132047608185.06 2. Parent Company Statement of Financial Position Unit: RMB Yuan Item Closing balance Opening balance Current assets: Cash at bank and on hand 1615615059.19 1230117559.98 Financial assets held for trading Derivative financial assets Notes receivable 467415105.55 566521081.97 Accounts receivable 2037327263.02 2482552334.49 Financing receivables 555212387.43 668605011.58 Prepayments 596663263.07 726081788.91 Other receivables 25930092.30 386280464.23 Including: Interest receivable Dividends receivable 4900000.00 250000000.00 Inventories 1462170436.88 1682608959.46 84Beijing Shougang Co. Ltd. Annual Report 2025 Including: Data resources Contract assets Assets held for sale Current portion of non-current assets Other current assets 426150517.24 313587537.06 Total current assets 7186484124.68 8056354737.68 Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments 36961450417.12 36720076756.68 Other equity instruments investments 271443020.81 268404638.58 Other non-current financial assets 25944976.84 70218671.35 Investment properties Fixed assets 17679969549.34 18666064480.15 Construction in progress 1354839576.48 1057966829.30 Productive biological assets Oil and gas assets Right-of-use assets 23232676.04 9004814.78 Intangible assets 1541555131.90 1601256519.01 Including: Data resources Development expenditures Including: Data resources Goodwill Long-term prepaid expenses Deferred tax assets 173589412.51 179175280.34 Other non-current assets Total non-current assets 58032024761.04 58572167990.19 Total assets 65218508885.72 66628522727.87 Current liabilities: Short-term borrowings 9773138151.39 8676269208.30 Financial liabilities held for trading Derivative financial liabilities Notes payable Accounts payable 8634623141.67 9665298876.19 Receipts in advance Contract liabilities 1089323248.92 932461337.67 Employee benefits payable 284336289.96 260679465.21 Taxes payable 132958270.76 41081290.90 Other payables 40453683.76 159473270.50 Including: Interest payable Dividends payable Liabilities held for sale Current portion of non-current liabilities 1745585501.80 1334422685.20 Other current liabilities 1198471089.36 1549477306.79 Total current liabilities 22898889377.62 22619163440.76 Non-current liabilities: Long-term borrowings 1839240000.00 3949070000.00 Bonds payable 500000000.00 Including: Preferred shares Perpetual bonds Lease liabilities 18654392.87 Long-term payables 2100000.00 2100000.00 Long-term employee benefits payables 68616671.24 72720356.41 Provisions 0.00 0.00 Deferred income 114830961.60 91446568.04 85Beijing Shougang Co. Ltd. Annual Report 2025 Deferred tax liabilities 288942873.98 311272229.33 Other non-current liabilities Total non-current liabilities 2832384899.69 4426609153.78 Total liabilities 25731274277.31 27045772594.54 Shareholders’ equity: Share capital 7754967370.00 7773981020.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 21979869827.45 22026550938.69 Less: Treasury shares 116640372.07 65694761.24 Other comprehensive income 191127128.91 188544504.02 Special reserve 6181674.73 Surplus reserve 1978886047.08 1961227213.80 Undistributed profits 7692842932.31 7698141218.06 Total shareholders’ equity 39487234608.41 39582750133.33 Total liabilities and shareholders’ equity 65218508885.72 66628522727.87 3. Consolidated Income Statement Unit: RMB Yuan Item 2025 2024 I. Total operating revenue 102918417572.91 108461993386.29 Including: Operating revenue 102918417572.91 108461993386.29 Interest income Earned premiums Service charge and commission income II. Total operating costs 101486431581.08 107956020496.92 Including: Operating costs 97753107217.37 104037105620.31 Interest expenses Service charge and commission expenses Insurance premium return Net insurance claim Net appropriation of deposit for insurance liability contracts Policy dividend expenses Reinsurance expenses Taxes and surcharges 872197505.34 765932377.47 Selling expenses 245806944.27 234747148.62 General and administrative expenses 1320732685.70 1284458666.57 R&D expenses 556830229.55 532698755.48 Financial expenses 737756998.85 1101077928.47 Including: Interest expenses 811686090.52 1176723369.76 Interest income 109174846.62 88226397.09 Add: Other income 484127359.02 1072688669.43 Investment gain/ (loss) 44530393.12 -306727610.88 Including: Gains from investments in associates and joint ventures 26756720.62 -317194130.31 Gains on derecognition of financial assets at amortized cost Foreign exchange gain/ (loss) Net exposure hedging gain/ (loss) Gain/ (loss) on the changes in fair value 4693755.42 -4790547.26 Credit impairment losses 4952147.42 -18963673.33 Assets impairment losses -572417684.70 -575389035.63 Gain/ (loss) from disposal of assets 1000160.74 791373.65 III. Operating profit/ (loss) 1398872122.85 673582065.35 Add: Non-operating income 10867774.28 147879321.13 Less: Non-operating expenses 119535314.32 67699598.76 IV. Profit/ (loss) before tax 1290204582.81 753761787.72 Less: Income tax expense 215343073.87 150283895.89 86Beijing Shougang Co. Ltd. Annual Report 2025 V. Net profit / (loss) 1074861508.94 603477891.83 1. Categorized by operation continuity: (1) Net profit/ (loss) from continuing operations 1074861508.94 603477891.83 (2) Net profit/ (loss) from discontinued operations 2. Categorized by ownership: (1) Net profit/ (loss) attributable to shareholders of the parent company 995635969.34 479418078.55 (2) Net profit/ (loss) attributable to non-controlling interests 79225539.60 124059813.28 VI. Other comprehensive income net of tax 2104041.02 -61017151.79 Other comprehensive income net of tax attributable to shareholders of the parent company 2265654.01 -61021333.66 1. Other comprehensive income that will not be reclassified to profit or loss 2582624.89 -61029535.54 (1) Remeasurement of changes in defined benefit plans (2) Other comprehensive income not converted into profit or loss under the equity method (3) Changes in fair value of other equity instruments investments 2582624.89 -61029535.54 (4) Changes in fair value of the company's credit risk (5) Others 2. Other comprehensive income to be reclassified to profit or loss -316970.88 8201.88 (1) Other comprehensive income converted into profit or loss under the equity method (2) Changes in fair value of other debt investments (3) Amount of financial assets reclassified into other comprehensive income (4) Provision for credit impairment of other debt investments (5) Cash flow hedging reserves (6) Foreign currency translation differences -316970.88 8201.88 (7) Others Other comprehensive income net of tax attributable to non-controlling interests -161612.99 4181.87 VII. Total comprehensive income 1076965549.96 542460740.04 Total comprehensive income attributable to shareholders of the parent company 997901623.35 418396744.89 Total comprehensive income attributable to non-controlling interests 79063926.61 124063995.15 VIII. Earnings per share 1. Basic earnings per share 0.1284 0.0618 2. Diluted earnings per share 0.1284 0.0618 4. Parent Company Income Statement Unit: RMB Yuan Item 2025 2024 I. Operating revenue 35131330099.32 36803582879.18 Less: Operating costs 33947636475.45 35567917809.84 Taxes and surcharges 213517623.21 212213114.74 Selling expenses 137306844.87 129019569.64 General and administrative expenses 526352569.36 513551196.78 R&D expenses 192487584.30 234581639.11 Financial expenses 309897752.14 394036563.14 Including: Interest expenses 314443008.31 402660308.80 Interest income 20236991.81 16751363.64 Add: Other income 147786975.46 249648602.17 Investment gain/ (loss) 308134123.89 108279795.26 Including: Gains from investments in associates and joint ventures 61323660.44 -271292907.49 Gains/ (loss) on derecognition of financial assets at amortized cost Net exposure hedging gain/ (loss) Gain/ (loss) on the changes in fair value 4693755.42 -4790547.26 Credit impairment losses 4776706.63 -9358658.19 87Beijing Shougang Co. Ltd. Annual Report 2025 Assets impairment losses -36736560.27 -44409798.55 Gain/ (loss) from disposal of assets 2082149.41 -234141.41 II. Operating profit/ (loss) 234868400.53 51398237.95 Add: Non-operating income 729100.00 141848189.95 Less: Non-operating expenses 76208412.60 48278846.80 III. Profit/ (loss) before tax 159389087.93 144967581.10 Less: Income tax expense -17199244.86 -25399630.41 IV. Net profit / (loss) 176588332.79 170367211.51 1. Net profit/ (loss) from continuing operations 176588332.79 170367211.51 2. Net profit/ (loss) from discontinued operations V. Other comprehensive income net of tax 2582624.89 -61029535.54 1. Other comprehensive income that will not be reclassified to profit or loss 2582624.89 -61029535.54 (1) Remeasurement of changes in defined benefit plans (2) Other comprehensive income not converted into profit or loss under the equity method (3) Changes in fair value of other equity instruments investments 2582624.89 -61029535.54 (4) Changes in fair value of the company's credit risk (5) Others 2. Other comprehensive income to be reclassified to profit or loss (1) Other comprehensive income converted into profit or loss under the equity method (2) Changes in fair value of other debt investments (3) Amount of financial assets reclassified into other comprehensive income (4) Provision for credit impairment of other debt investments (5) Cash flow hedging reserves (6) Foreign currency translation differences (7) Others VI. Total comprehensive income 179170957.68 109337675.97 VII. Earnings per share 1. Basic earnings per share 2. Diluted earnings per share 5. Consolidated Statement of Cash Flows Unit: RMB Yuan Item 2025 2024 I. Cash flows from operating activities: Cash receipts from the sale of goods and the rendering of services 52704461009.54 49820586355.18 Net increase of customers’ deposits and interbank deposits Net increase in borrowings from the Central Bank Net increase in borrowings from other financial institutions Cash received for premiums of original insurance contracts Net cash received from reinsurance operations Net increase in policyholders’ savings and investment funds Cash received from interest service charge and commission Net increase in borrowings from banks and other financial institutions Net increase in funds of repurchase operations Net cash received from acting trading securities Tax refunds received 7375908.93 Cash received relating to other operating activities 640380139.87 728233753.74 Cash inflow from operating activities 53352217058.34 50548820108.92 Cash paid for purchase of goods and services 37239989180.11 37382537737.28 Net increase in loans and advances to customers Net increase in deposits with the Central Bank and interbank Cash payment of compensation for original insurance contracts Net increase in lendings to banks and other financial institutions Cash paid for interest service charge and commission Cash paid as policy dividends 88Beijing Shougang Co. Ltd. Annual Report 2025 Cash paid to and on behalf of employees 4621502825.13 4563983771.66 Cash paid for taxes 2753183573.14 1526078674.54 Cash paid relating to other operating activities 600864430.23 733998556.85 Cash outflow from operating activities 45215540008.61 44206598740.33 Net cash flows from operating activities 8136677049.73 6342221368.59 II. Cash flows from investing activities: Cash received from disposal of investments 57450827.26 Cash received from investment gain 38881702.29 40326371.21 Net proceeds from disposal of fixed assets intangible assets and other long-term assets 513156.03 1851894.32 Cash received from disposal of subsidiaries and other business units Cash received relating to other investing activities Subtotal of cash inflows from investing activities 96845685.58 42178265.53 Purchase of fixed assets intangible assets and other long-term assets 357050854.36 229495323.18 Cash paid for investments 35000000.00 30908160.00 Net increase in pledge loans Net cash paid for acquisition of a subsidiary and other business units 150366403.60 Cash paid relating to other investing activities Cash outflow from investing activities 542417257.96 260403483.18 Net cash flows from investing activities -445571572.38 -218225217.65 III. Cash flows from financing activities: Cash received from investment 30727580.39 Including: Cash receipts from capital contributions from non-controlling interests of subsidiaries Proceeds from borrowings 25143230000.00 29070240000.00 Cash receipts relating to other financing activities Cash inflow from financing activities 25143230000.00 29100967580.39 Repayments for debts 29342630000.00 33067600000.00 Cash payments for distribution of dividends or profit and interest expenses 1081605147.61 1469587646.76 Including: Dividends or profits paid to non-controlling interests of subsidiaries 83544908.65 62307325.33 Cash payments relating to other financing activities 364901572.24 858115570.41 Cash outflow from financing activities 30789136719.85 35395303217.17 Net cash flows from financing activities -5645906719.85 -6294335636.78 IV. Effect of exchange rate changes on cash and cash equivalents -1560081.21 1548107.50 V. Net increase in cash and cash equivalents 2043638676.29 -168791378.34 Add: Cash and cash equivalents as at the beginning of year 8746738696.99 8915530075.33 VI. Cash and cash equivalent as at the end of year 10790377373.28 8746738696.99 6. Parent Company Statement of Cash Flows Unit: RMB Yuan Item 2025 2024 I. Cash flows from operating activities: Cash receipts from the sale of goods and the rendering of services 17307650398.47 18422001039.08 Tax refunds received Cash received relating to other operating activities 482934402.16 258233060.75 Cash inflow from operating activities 17790584800.63 18680234099.83 Cash paid for purchase of goods and services 14743823076.14 15904610759.89 Cash paid to and on behalf of employees 1352884318.68 1449664980.93 Cash paid for taxes 338016711.99 337133647.58 Cash paid relating to other operating activities 244128897.35 375943551.96 Cash outflow from operating activities 16678853004.16 18067352940.36 Net cash flows from operating activities 1111731796.47 612881159.47 II. Cash flows from investing activities: Cash received from disposal of investments 48967449.93 Cash received from investment gain 496860463.45 137333449.24 Net proceeds from disposal of fixed assets intangible assets and other long- term assets 26580458.33 1100209.86 89Beijing Shougang Co. Ltd. Annual Report 2025 Cash received from disposal of subsidiaries and other business units Cash received relating to other investing activities Subtotal of cash inflows from investing activities 572408371.71 138433659.10 Purchase of fixed assets intangible assets and other long-term assets 142130996.46 108053914.72 Cash paid for investments 185000000.00 Net cash paid for acquisition of a subsidiary and other business units Cash paid relating to other investing activities Cash outflow from investing activities 327130996.46 108053914.72 Net cash flows from investing activities 245277375.25 30379744.38 III. Cash flows from financing activities: Cash received from investment Proceeds from borrowings 12451000000.00 13003240000.00 Cash receipts relating to other financing activities Cash inflow from financing activities 12451000000.00 13003240000.00 Repayments for debts 12751000000.00 13500000000.00 Cash payments for distribution of dividends or profit and interest expenses 487208295.50 644572509.06 Cash payments relating to other financing activities 184830132.87 77802443.53 Cash outflow from financing activities 13423038428.37 14222374952.59 Net cash flows from financing activities -972038428.37 -1219134952.59 IV. Effect of exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents 384970743.35 -575874048.74 Add: Cash and cash equivalents as at the beginning of year 1229854212.61 1805728261.35 VI. Cash and cash equivalent as at the end of year 1614824955.96 1229854212.61 7. Consolidated Statement of Changes in Equity Current period amount Unit: RMB Yuan 2025 Equity attributable to shareholders of the parent company Other equity Othe Non- Total instruments Shar Less: r Gen Undi cont shar Item e Pref Capit Trea com Speci Surpl eral strib rollin ehol erre Perp al preh al us Othe Sub- g ders’capit d etual Othe reser sury shar ensiv reser reser risk uted reser profi rs total inter equital shar bond rs ve es e ve ve ve ts ests y es s income I.Bala nce at 777 304067 656 188 451 196 944 497 579498 547 the 398 947 552 405 131 797 435 423 end 102 18853.2 61.2 639. 19.2 631 138 0.00859072367 of 0.00 4 99 7 9.60 8.81 79.6 5.02 04.6 previ 1 4 6 ous year A dd: Chan ges in acco 0.00 unti ng polic ies C orre 0.00 90Beijing Shougang Co. Ltd. Annual Report 2025 ction s of prior perio d error s O thers 0.00 II.Bala nce at 777 304 656 188 451 196 944 497 498 547 the 398 067188 947 552 405 131 797 579435423 begi 102 53.2 61.2 639. 19.2 631 138 859072367 nnin 0.00 1 4 99 7 9.60 8.81 79.6 45.02 04.6 g of 6 the year III.Incre ase/( decr - - ease 190 188 509 226 115 175 799 572 - 568 )136074456565656697339706393775 duri 50.0 147. 10.8 4.01 24.6 27.4 013. 611. 103 579.ng 0 00 3 3 8 50 79 2.34 45 the perio d 1. Total com preh 226 995997790107 565 635 901 639 696ensiv 4.01 969. 623. 26.6 554e 34 35 1 9.96 inco me 2. Shar ehol ders’ - - - - cont 190 504 509 456120120 ribut 136 260 385 0.00 385 ions 50.0 25.5 10.8 3286.286. and 0 1 34 34 redu ction 1. Shar ehol ders’ cont - - - ribut 190 466 656 ions 136 811 947 in 50.0 11.2 61.2 ordi 0 4 4 nary shar e 2. Capit al 91Beijing Shougang Co. Ltd. Annual Report 2025 cont ribut ions of othe r equit y instr ume nt hold ers 3. Amo unt of shar e- base d pay 0.00 0.00 0.00 0.00 men ts reco gnize d in equit y -- 4.-116120120 Othe 374 640 rs 491 372. 3850.00385 4.2707286.286.3434 3. Profi 176 - - - - t 588 190 173 847 257 distri 33.2 686 027 156 743 buti 8 389. 556. 12.9 169.on 89 61 0 51 1. Tran sfer 176 - to 588 176 surpl 33.2 588 0.00 us 8 33.2 reser 8 ve 2. With draw al of gene 0.00 ral risk reser ve 3. Distr - - - - ibuti 173 173 847 257 on 027 027 156 743 to 556. 556. 12.9 169.own 61 61 0 51 92Beijing Shougang Co. Ltd. Annual Report 2025 ers (shar ehol ders) 4. Othe 0.00 rs 4. Tran sfer withi 0.00 n equit y 1. Capit al reser ves conv erte 0.00 d to shar e capit al 2. Surpl us reser ves conv erte 0.00 d to shar e capit al 3. Loss mad e up by 0.00 surpl us reser ves 4. Chan ges in defin ed bene fit plan 0.00 s trans ferre d to retai ned earni 93Beijing Shougang Co. Ltd. Annual Report 2025 ngs 5. Othe r com preh ensiv e inco me 0.00 trans ferre d to retai ned earni ngs 6. Othe 0.00 rs 5. Speci 115 115 132 al 656 656 172862 reser 24.6 24.6 06578.5 ve 3 3 3.958 1.152152147167 Addi 654 654 915 446 tions 856. 856. 26.4 383.91 91 0 31 2.141141130154 Utilis 089 089 708 160 ation 232. 232. 72.4 104.28 28 5 73 --- 6. 137 - -891 561 143 143Othe 648 05.8 056 347 347rs 121. 0 5.95 793. 793.49 24 24 IV.Bala nce at 775 302186 116 190 567 197 102503553 the 496 640 818 061 888 473 306 498 041111 end 737 447 372. 294. 43.9 604 104 925 122 of 0.00 06.2 07 00 0 7.08 02.3 91.4 96984.1 the 1 1 3 2.681 perio d Prior period amount Unit: RMB Yuan 2024 Equity attributable to shareholders of the parent company Other equity Othe Non- Total instruments Less: r Gen Undi cont shar Item Shar e Pref Capit al Trea com Speci Surpl eral strib rollin ehol erre Perp sury preh al uscapit etual Othe reser ensiv reser reser risk uted Othe Sub- g ders’ al d shar reser profi rs total inter equit shar bond rs ve es e ve ve ve ts ests y es s income I. 779 303 130 249 328 194 922 0.00 494 494 544 94Beijing Shougang Co. Ltd. Annual Report 2025 Bala 461 590 627 573 134 419 414 737 647 202 nce 160 811 194. 973. 10.1 049 593 894 468 640 at 5.00 90.3 09 65 4 2.65 4.95 12.6 6.53 99.1 the 5 5 8 end of previ ous year A dd: Chan ges in acco 0.00 unti ng polic ies C orre ction s of prior 0.00 perio d error s O 614 499 550 674 674 thers 978 0.00 0.00 0.00 53.1 046. 978 9788.19 8 82 8.19 8.19 II.Bala nce at 779 303 130 249 328 194 922 494 494 544 the 461 652 805 270 begi 160 309 627573134424469647 78.5194.973.10.1044598 392468138 nnin 5.00 09 65 4 5.83 1.77 00.8 6.53 87.3 g of 4 4 7 the year III.Incre ase/( decr - 414 - -ease 206 649 610 123 170 223 277 378 315 )305878324213271758275446760322 duri 85.0 74.6 32.8 33.6 09.1 73.7 407. 778. 38.4 817.ng 0 7 5 6 3 7 04 80 9 29 the perio d 1. Total com - 479 418 124 542 preh 610213 418 396 063460 ensiv 33.6 078. 744. 995.740. e 55 89 15 04 inco 6 me 2.-414-857-620 Shar 206 878 649 897 237 798 ehol 305 74.6 324 22.5 098 36.1 95Beijing Shougang Co. Ltd. Annual Report 2025 ders’ 85.0 7 32.8 2 86.4 2 cont 0 5 0 ribut ions and redu ction 1. Shar ehol ders’ cont - - - ribut 206 163 649 280280 ions 305 018 324 0000.00000 in 85.0 47.8 32.8 00.000.0 ordi 0 5 5 00 nary shar e 2. Capit al cont ribut ions of othe r 0.00 equit y instr ume nt hold ers 3. Amo unt of shar e- base - - - d 379 379 379 pay 924 924 0.00 924 men 92.2 92.2 92.2 ts 2 2 2 reco gnize d in equit y - 4.957957237720 Othe 822 822 098 723 rs 14.7 14.7 86.4 28.34 4 0 4 3. Profi 170 - - - - t 758 256 239 650 304 distri 73.7 142 066 291 095 buti 7 671. 797. 68.9 966.on 51 74 7 71 96Beijing Shougang Co. Ltd. Annual Report 2025 1. Tran sfer 170 - to 758 170 surpl 73.7 758 0.00 us 7 73.7 reser 7 ve 2. With draw al of gene 0.00 ral risk reser ve 3. Distr ibuti on - - - - to 239 239 650 304 own 066 066 291 095 ers 797. 797. 68.9 966.(shar 74 74 7 71 ehol ders) 4. Othe 0.00 rs 4. Tran sfer withi 0.00 n equit y 1. Capit al reser ves conv erte 0.00 d to shar e capit al 2. Surpl us reser ves conv erte 0.00 d to shar e capit al 3. Loss 0.00 97Beijing Shougang Co. Ltd. Annual Report 2025 mad e up by surpl us reser ves 4. Chan ges in defin ed bene fit plan 0.00 s trans ferre d to retai ned earni ngs 5. Othe r com preh ensiv e inco me 0.00 trans ferre d to retai ned earni ngs 6. Othe 0.00 rs 5. Speci 123 123 148 al 0.00 271 271 255 109782 reser 09.1 09.1 8.71 07.8 ve 3 3 4 1.141141133154 Addi 0.00 176 176 496 526 tions 626. 626. 43.0 269.65 65 0 65 2.128128107139 Utilis 849 849 985 648 ation 517. 517. 44.2 061.52 52 9 81 6. Othe 0.00 rs IV. 777 304 656 188 451 196 944 497 498 547 Bala 398 067 947 552 405 131 797 579 435 423 nce 102 188 61.2 639. 19.2 631 138 859 072 367 at 0.00 53.2 4 99 7 9.60 8.81 79.6 5.02 04.6 98Beijing Shougang Co. Ltd. Annual Report 2025 the 1 4 6 end of the perio d 8. Parent Company Statement of Changes in Equity Current period amount Unit: RMB Yuan 2025 Other equity instruments Other Item Share Capital Less: compr Surplu Undist Total Preferr Perpet reserv Treasu ehensi Special s ribute shareh capital reserv Othersed ual Others e ry ve e reserv d olders’ shares bonds shares incom e profits equity e I.Balanc e at the 7773 22026 65694 18854 1961 7698 39582 end of 98102 5509 761.2 4504. 0.00 22721 14121 0.00 7501 previo 0.00 38.69 4 02 3.80 8.06 33.33 us year Add: Chang es in accoun ting policie s C orrecti ons of prior period errors O thers II.Balanc e at the 7773 22026 65694 18854 1961 7698 39582 beginn 98102 5509 761.2 4504. 0.00 22721 14121 0.00 7501 ing of 0.00 38.69 4 02 3.80 8.06 33.33 the year III.Increa se/(de - - crease 19013 46681 50945 2582 6181 17658 - - 610.8833.252980.0095515)650.0111.2624.89674.73524.9 during 0 4 3 8 285.75 2 the period 1. Total compr 2582 17658 17917 ehensi 0.00 0.00 0.00 624.89 0.00 0.00 8332. 0.00 0957.ve 79 68 incom 99Beijing Shougang Co. Ltd. Annual Report 2025 e 2. Shareh olders’ - - - contri 19013 46681 50945 11664 bution 650.0 111.2 610.83 0372.s and 0 4 07 reducti on 1. Shareh olders’ contri - - - bution 19013 46681 65694 s in 650.0 111.2 761.2 ordina 0 4 4 ry share 2. Capital contri bution s of other equity instru ment holder s 3. Amou nt of share- based payme nts recogn ized in equity 4.11664 - Others 0372. 11664 070372.07 3. Profit 17658 -- 833.2 18868 0.00 17102distrib 8 6389. 7556.ution 89 61 1. Transf er to 17658 - surplu 833.2 17658833.2 0.00 0.00s 8 reserv 8 e 2. Distrib ution to - - owner 17102 17102 s 7556. 7556.(share 61 61 holder s) 100Beijing Shougang Co. Ltd. Annual Report 2025 3. Others 4. Transf er within equity 1. Capital reserv es conver ted to share capital 2. Surplu s reserv es conver ted to share capital 3. Loss made up by surplu s reserv es 4. Chang es in define d benefi t plans transfe rred to retain ed earnin gs 5. Other compr ehensi ve incom e transfe rred to retain ed earnin gs 6. Others 5. Special 6181 6181 reserv 674.73 674.73 e 101Beijing Shougang Co. Ltd. Annual Report 2025 1.7405674056 Additi 389.8 389.8 ons 0 0 2.6787467874 Utilisat 715.0 715.0 ion 7 7 6.67996799 Others 0.00 771.35 771.35 IV.Balanc e at 7754 21979 11664 19112 6181 1978 7692 39487the 96737 8698 0372. 7128. 88604 84293 0.00 2346 end of 0.00 27.45 07 91 674.73 7.08 2.31 08.41 the period Prior period amount Unit: RMB Yuan 2024 Other equity instruments Other Capital Less: compr Special Surplu Undist TotalItem Share Preferr Perpet Treasu ehensi s ribute shareh capital reserv reserv Othersed ual Others e ry ve e reserv d olders’ shares bonds shares incom e profits equity e I.Balanc e at the 7794 22108 13062 24957 1944 7778 39745 end of 61160 8452 7194. 4039. 0.00 19049 64907 0.00 2432 previo 5.00 78.76 09 56 2.65 5.85 97.73 us year A dd: Chang es in accoun ting policie s C orrecti ons of prior period errors O thers II.Balanc e at the 7794 22108 13062 24957 1944 7778 39745 beginn 61160 8452 7194. 4039. 0.00 19049 64907 0.00 2432 ing of 5.00 78.76 09 56 2.65 5.85 97.73 the year III.Increa - - - - - - se/(de 20630 82294 64932 61029 17036 80507 16249 crease 585.0 340.0 432.8 535.5 0.00 721.1 857.7 0.00 3164.)07545940 during 102Beijing Shougang Co. Ltd. Annual Report 2025 the period 1. Total compr - 17036 10933 ehensi 0.00 0.00 0.00 61029535.5 0.00 0.00 7211. 0.00 7675.ve 4 51 97incom e 2. Shareh olders’ - - - - contri 20630 82294 64932 37992 bution 585.0 340.0 432.8 492.2 s and 0 7 5 2 reducti on 1. Shareh olders’ contri - - - bution 20630 44301 64932585.0 847.8 432.8 0.00s in ordina 0 5 5 ry share 2. Capital contri bution s of other equity instru ment holder s 3. Amou nt of share- - - based 37992 37992 payme 492.2 492.2 nts 2 2 recogn ized in equity 4. Others 3.-- Profit 17036721.1 25087 0.00 23383distrib 5 5069. 8348.ution 30 15 1. Transf er to 17036 - surplu 721.1 17036721.1 0.00 0.00s 5 reserv 5 e 2.-- Distrib 23383 23383 ution 8348. 8348. 103Beijing Shougang Co. Ltd. Annual Report 2025 to 15 15 owner s (share holder s) 3. Others 4. Transf er within equity 1. Capital reserv es conver ted to share capital 2. Surplu s reserv es conver ted to share capital 3. Loss made up by surplu s reserv es 4. Chang es in define d benefi t plans transfe rred to retain ed earnin gs 5. Other compr ehensi ve incom e transfe rred to retain ed earnin gs 104Beijing Shougang Co. Ltd. Annual Report 2025 6. Others 0.00 5. Special reserv 0.00 0.00 0.00 e 1.7402874028 Additi 0.00 758.9 758.9 ons 5 5 2.7402874028 Utilisat 0.00 758.9 758.9 ion 5 5 6. Others 0.00 0.00 IV.Balanc e at 7773 22026 65694 18854 1961 7698 39582 the 98102 5509 761.2 4504. 0.00 22721 14121 0.00 7501 end of 0.00 38.69 4 02 3.80 8.06 33.33 the period III. General information of the Company Beijing Shougang Co. Ltd. was established on 15 October 1999 and issued with a business license by the Beijing Municipal Administration for Industry and Commerce with the registration number 911100007002343182 the registered address at Shijingshan Road Shijingshan District Beijing and the current registered capital of RMB 7754.96737 million.Unified social credit code: 911100007002343182 Form of organization: other joint stock limited company Legal representative: Zhu Guosen Business scope: operation of telecommunications business; insurance agency business; insurance brokerage business; iron and steel smelting steel rolling processing; copper smelting and rolling processing sales; manufacturing and sales of sintered ore coke and chemical products; TRT power generation and gas production and sales; industrial production processing and sales of wastes from industrial production; sales of metal materials coke chemical products machinery and electrical equipment construction materials general equipment hardware and electrical appliances (excluding electric bicycles) furniture decorative materials; equipment leasing (except automobiles); loading and unloading; software development; advertising design agency; warehousing services; technology development consulting transfer services and training; investment and investment management.(Market entities can independently choose operating items and carry out business activities in accordance with the law; for the operation of telecommunications business insurance agency business insurance brokerage business and items subject to approval by law business activities can be conducted in accordance with the approved contents after the approval by competent departments; business activities are not allowed if they belong to the items prohibited and restricted by the national and municipal industrial policies).The financial report of the Company was approved for issue by the Board of Directors of the Company on 16 April 2026.IV. Basis of preparation of the financial statements 1. Basis of preparation The financial statements of the Company are prepared based on transactions and events that actually occur in accordance with the Accounting Standards for Business Enterprises and their application guidance 105Beijing Shougang Co. Ltd. Annual Report 2025 interpretations and other related regulations (collectively known as the “ASBE”) issued by the Ministry of Finance of the PRC as well as the related disclosure requirements set out in the General Provisions on Financial Reporting of the Compilation Rules for Information Disclosure of Companies Issuing Securities to the Public No. 15 (Revised in 2023) of the China Securities Regulatory Commission. 2. Going concern The Company has evaluated its ability to continue as a going concern for the twelve months from the end of the reporting period and no matters or circumstances have been identified that cast significant doubt on its ability to continue as a going concern. The financial statements are prepared on a going concern basis.V. Significant accounting policies and estimates Specific accounting policies and accounting estimates are set out below: The Company has formed specific accounting policies and accounting estimates based on the characteristics of actual production and operation including: determining the depreciation of fixed assets construction in progress converted to fixed assets amortization of intangible assets capitalization conditions of R&Dexpenses and revenue recognition policies. The detailed accounting policies are described in “Note V. 15.Fixed assets Note V. 16. Construction in progress Note V. 18. Intangible assets Note V. 24. Revenue” in this section. 1. Statement of compliance with the ASBE The financial statements have been prepared in accordance with the ASBE and present truly and completely the consolidated and the parent company’s financial position as at 31 December 2025 and the consolidated and the parent company’s financial performance and cash flows for FY 2025. 2. Accounting period The accounting period of the Company is from 1 January to 31 December of each calendar year. 3. Operating cycle The operating cycle of the Company is 12 months. 4. Functional currency The Company and domestic subsidiaries use Renminbi (“RMB”) as their functional currency. The overseas subsidiaries of the Company use the currency of the main economic environment in which they operate as their functional currency.The financial statements of the Company have been prepared in RMB. 5. Method for determination and selection criteria of the materiality level □Applicable □Non-applicable Item Materiality Level Material accounts receivable with individual provision for bad debts ≥RMB 10 million Material accounts receivable written off during current period ≥RMB 10 million Material construction in progress 1% of the latest audited net assets attributable to the parent company Material non-wholly owned subsidiaries Single contribution amount exceeding RMB 500 million (inclusive) Material investing activities 1% of the latest audited net assets attributable to the parent company 6. Accounting treatments for business combination involving entities under common control and business combination involving entities not under common control (1) Business combinations involving entities under common control A business combination is a business combination involving entities under common control if the enterprises participating in the combination are under the ultimate control of the same party or parties before and after the combination and the control is not of a temporary nature. 106Beijing Shougang Co. Ltd. Annual Report 2025 For the business combination involving entities under common control the assets and liabilities obtained by the Company as the combining party in the business combination shall be measured at the book value as recorded by the party being combined in the consolidated statements of the ultimate controlling party as at the combination date. The difference between the book value of the net assets obtained and the book value of consideration paid for the combination shall be adjusted to the capital reserve; if the capital reserve is not sufficient to absorb the difference any excess shall be adjusted to retained earnings. (2) Business combinations involving entities not under common control A business combination is a business combination involving entities not under common control if the enterprises participating in the combination are not under the ultimate control of the same party or parties before and after the combination.For the business combination involving entities not under common control the acquiree’s identifiable assets liabilities and contingent liabilities obtained by the Company as the acquirer shall be measured at fair value at the date of acquisition. The excess of combination costs over the acquirer’s interest in the fair value of the acquiree’s identifiable net assets is recognized as goodwill. If the acquirer’s interest in the fair value of the acquiree’s identifiable net assets exceeds the combination costs the acquirer shall first review the fair value of each of the identifiable assets liabilities and contingent liabilities obtained in the combination and the combination costs and if after the review the combination costs are still less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets obtained in the combination the difference is recognized in profit or loss in the period of the combination. 7. Criteria of control and method of preparing consolidated financial statements The consolidation scope of the consolidated financial statements of the Company is determined based on control which includes the Company and all subsidiaries controlled by the Company. The Company's criteria for determining control: the Company has the power over the investee enjoys variable returns through participating in related activities of the investee and has the ability to use the power over the investee to influence its return amount.In preparing the consolidated financial statements if the accounting policies or accounting periods adopted by a subsidiary and the Company are not consistent the necessary adjustments are made to the financial statements of the subsidiary in accordance with the Company's accounting policies or accounting periods.The effects of internal transactions between the Company and its subsidiaries and between subsidiaries on the consolidated financial statements are offset on consolidation. The portion of the subsidiary’s equity that is not attributable to the parent company and the portion of net profit or loss other comprehensive income and total comprehensive income that is attributable to non-controllinginterests are presented in the consolidated income statements as “non-controlling interests profit or lossattributable to non-controlling interests other comprehensive income attributable to non-controllinginterests and total comprehensive income attributable to non-controlling interests” respectively.For subsidiaries acquired through business combinations involving entities under common control their operating results and cash flows are included in the consolidated financial statements from the beginning of the period of the combination. When preparing the comparative consolidated financial statements the relevant items in the prior year's financial statements are adjusted as if the reporting entity formed by the combination had existed since the point at which control by the ultimate controlling party began. 107Beijing Shougang Co. Ltd. Annual Report 2025 If the equity in an investee under common control is acquired step by step through multiple transactions which ultimately results in a business combination when preparing the consolidated statements adjustment is made as if it had existed in its current state from the time when the ultimate controlling party began to exercise control; in the preparation of the comparative statements the relevant assets and liabilities of the party being combined are consolidated into the comparative statements in the Company's consolidated financial statements to the extent that such assets or liabilities are consolidated no earlier than at the point when the Company and the party being combined are both under the control of the ultimate controlling party. The relevant items under shareholders’ equity in the comparative statements are adjusted for the net assets increased due to the combination. In order to avoid double-counting of the value of the net assets of the party being combined for the related gains and losses other comprehensive income and other changes in net assets recognized for the long-term equity investments held by the Company before reaching the combination between the later of the date of acquisition of the original shareholding and the date on which the Company and the party being combined are under the ultimate control of the same party and the date of combination the opening retained earnings and current profit or loss for the comparative statement period should be written down respectively.For a subsidiary acquired through a business combination involving entities not under common control the operating results and cash flows are included in the consolidated financial statements from the date the Company obtains control. In preparing the consolidated financial statements the financial statements of subsidiaries are adjusted on the basis of the fair value of each identifiable asset liability and contingent liability determined at the date of acquisition.If the equity in an investee not under common control is acquired step by step through multiple transactions which ultimately results in a business combination in preparing the consolidated statements the equity in the acquiree held prior to the date of acquisition is remeasured at the fair value of the equity in the acquiree at the date of acquisition and the difference between the fair value and its book value is recognized as investment gain for the period; other comprehensive income under the equity method and changes in shareholders’ equity other than net profit or loss other comprehensive income and profit distribution in respect of the equity in the acquiree held prior to the date of acquisition shall be transferred to investment gain or loss in the period in which the date of acquisition falls except for other comprehensive income arising from the remeasurement of changes in net liabilities or net assets of the defined benefit plan by the investee.Where the Company partially disposes of its long-term equity investment in a subsidiary without loss of control for the difference between the disposal price and the share of the subsidiary's net assets calculated on a continuing basis from the date of acquisition or the date of combination corresponding to the disposal of the long-term equity investment the capital premium or equity premium shall be adjusted in the consolidated financial statements or the retained earnings shall be adjusted if the capital reserves are insufficient to be written down.If the Company loses control over an investee due to for example the disposal of a portion of an equity investment the remaining equity shall be remeasured at its fair value at the date of the loss of control in the preparation of the consolidated financial statements. The difference between the sum of consideration obtained from the disposal of the equity and the fair value of the remaining equity and the share of the net assets of the original subsidiary that have been continuously calculated from the date of acquisition or the date of combination based on the original shareholding is included in investment gain or loss in the period in which control is lost and goodwill also shall be deducted. Other comprehensive 108Beijing Shougang Co. Ltd. Annual Report 2025 income related to equity investments of the original subsidiary should be transferred to investment gain or loss in the period when control is lost.When the Company disposes of its equity investment in a subsidiary in stages through multiple transactions until it loses control over the subsidiary if all transactions of disposing of the equity investment in the subsidiary until it loses control over the subsidiary belong to a package deal each transaction shall be accounted for as a single transaction of disposing of the subsidiary and losing control of the subsidiary; provided however that the difference between the price of each disposal prior to the loss of control and the share of the subsidiary's net assets corresponding to the investment disposed of is recognized in the consolidated financial statements as other comprehensive income and transferred to investment gain or loss for the period of the loss of control when control is lost. 8. Classification of joint arrangements and the accounting treatment of joint operations The joint arrangements of the Company include joint operations and joint ventures. Joint operation is a joint arrangement whereby the joint operators have rights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is a type of joint arrangement whereby the joint venturers only have the rights to the net assets of the arrangement.For the projects belonging to joint operations the Company recognizes assets held and liabilities assumed on its own and assets held and liabilities assumed on a share basis as a joint operator in the joint operations and recognizes the related revenues and expenses on its own or on a share basis in accordance with the relevant agreements. When transactions involving the purchase and sale of assets in joint operations do not constitute a business only the portion of the gain or loss resulting from the transactions attributable to the other participants in the joint operations is recognized. 9. Criteria for determining cash and cash equivalents Cash in the Company's statement of cash flows represents the cash on hand and deposits which are readily available for payment. Cash equivalents in the statement of cash flows represent short-term (not exceeding three months) highly liquid investments which are readily convertible into known amounts of cash and subject to an insignificant risk of changes in value. 10. Foreign currency operations and foreign currency statement translation (1) Foreign currency transactions When the foreign currency transactions are initially recognized by the Company the foreign currency amount shall be converted into the functional currency at the spot exchange rate on the transaction date (or using an exchange rate determined by a systematic and reasonable method that is similar to the spot exchange rate on the transaction date). On the balance sheet date foreign currency monetary items are converted into the functional currency using the spot exchange rate on the balance sheet date and the resulting translation differences are directly recognized in the current profit or loss except for exchange differences arising from foreign currency borrowings specifically for the acquisition or production of assets eligible for capitalization (which are treated in accordance with the capitalization principle). (2) Foreign currency statement translation In preparing the consolidated financial statements the Company translates the financial statements of its foreign operations into RMB of which: the asset and liability items in the foreign-currency statement of financial position are translated using the spot exchange rate on the balance sheet date.Except for "undistributed profits" other items in shareholders’ equity are converted using the spot exchange rate on the date of occurrence. The income and expense items in the income statement are converted using the spot exchange rate on the transaction date (or using an exchange rate determined 109Beijing Shougang Co. Ltd. Annual Report 2025 by a systematic and reasonable method that is similar to the spot exchange rate on the transaction date).The difference arising from the above conversion of foreign-currency financial statements is reflected in the “other comprehensive income” item. Cash flows in foreign currencies are converted at the spot exchange rate on the date of cash flow occurrence (or using an exchange rate determined by a systematic and reasonable method that is similar to the spot exchange rate on the date of cash flow occurrence). The impact of exchange rate changes on cash is separately reflected in the statement of cash flows. 11. Financial instruments (1) Recognition and derecognition of financial instruments The Company recognises a financial asset or a financial liability when it becomes a party to the contractual provisions of the instrument.A financial asset is derecognized when it satisfies one or more of the following conditions: 1) The contractual rights to receive cash flows from the financial asset expire; 2) The financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset have been transferred to the transferee; 3) The financial asset has been transferred and the enterprise surrenders control over the financial asset although it neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset. If the enterprise neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset nor does it surrender control over the financial asset it shall continue to recognize the related financial asset to the extent of its continuing involvement in the transferred financial asset and recognize an associated liability correspondingly. The extent of the continuing involvement in the transferred financial asset is the level of risk to which the enterprise is exposed as a result of changes in the value of the financial asset. If the overall transfer of the financial asset satisfies the derecognition conditions the difference between the book value of the transferred financial asset and the sum of the consideration received for the transfer and the cumulative amount of changes in fair value previously recognized in other comprehensive income is included in the current profit or loss.The financial liability (or part of it) is derecognized when its present obligation (or part of it) has been discharged. If the Company (as a debtor) makes an agreement with the creditor to replace the current financial liability with assuming a new financial liability and contractual terms between the current and the new financial liabilities are different in substance the current financial liability shall be derecognized and a new financial liability shall be recognized.All financial assets purchased or sold in regular way are recognised or derecognised based on the trade date accounting. The transaction date refers to the date on which the Company commits to buy or sell a financial asset. (2) Classification and measurement of financial assets The Company classifies its financial assets based on its business model for managing the financial assets and the contractual cash flow characteristics of the financial assets as financial assets at amortized cost financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss.Financial assets are measured at fair value at initial recognition. The accounts receivable or notes receivable arising from the sale of goods or provision of services which do not include significant financing components or do not consider financing components without exceeding one year shall be initially measured at the transaction price. 110Beijing Shougang Co. Ltd. Annual Report 2025 For financial assets at fair value through profit or loss the relevant transaction costs are directly recognized in the current profit or loss. For other categories of financial assets relevant transaction costs are included in the initial recognition amount.The subsequent measurement of a financial asset depends on its classification: 1) Financial assets measured at amortized cost The Company shall classify financial assets that meet all the following conditions as financial assets measured at amortized cost:* the business model for managing such financial assets is to collect contractual cash flows.* the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Interest income on such financial assets is recognized using the effective interest method and any gains or losses arising from their derecognition modification or impairment are recognized in profit or loss for the current period.After initial recognition this type of financial assets is measured at amortized cost using the effective interest method. The gain or loss generated by the financial assets measured at amortized cost and not part of any hedging relationship shall be recognized in profit or loss for the period when the financial assets are derecognized amortized by the effective interest method or their impairment are recognized. 2) Debt instrument investments at fair value through other comprehensive income The Company shall classify financial assets that meet all the following conditions as financial assets measured at fair value through other comprehensive income:* the business model for managing such financial assets is both to collect contractual cash flows and sell the financial assets.* the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income from such financial assets is recognized using the effective interest method. Changes in fair value are recognized in other comprehensive income except for interest income impairment losses and exchange differences which are recognized in the current profit or loss. When the financial assets are derecognized the accumulated profit or loss previously recognised in other comprehensive income shall be transferred to the current profit or loss. 3) Equity instrument investments at fair value through other comprehensive income The Company has irrevocably designated certain non-trading equity instrument investments as financial assets at fair value through other comprehensive income and the designation is irrevocable once made. The Company recognizes only the related dividend income (except for dividend income that is explicitly recovered as the cost of the investment) in the current profit or loss and subsequent changes in fair value are recognized in other comprehensive income without provisions for impairment. When the financial assets are derecognized the accumulated profit or loss previously recognised in other comprehensive income shall be transferred to retained earnings. The Company’s financial assets that fall into this category are other equity instruments investments. 4) Financial assets at fair value through profit or loss The Company classifies financial assets other than those measured at amortized cost and those at fair value through other comprehensive income as described above as financial assets at fair value through profit or loss. In addition in order to eliminate and significantly reduce accounting mismatches the Company designates some financial assets as financial assets at fair value through profit or loss during the initial recognition. For such financial assets the Company uses fair value for subsequent measurement and changes in fair value are recognized in the current profit or loss. 111Beijing Shougang Co. Ltd. Annual Report 2025 (3) Classification recognition and measurement of financial liabilities The Company classifies its financial liabilities at initial recognition as financial liabilities at fair value through profit or loss and financial liabilities measured at amortized cost. With respect to financial liabilities not classified as at fair value through profit or loss the related transactions costs are charged to the initial recognition amount.The subsequent measurement of a financial liability depends on its classification: 1) Financial liabilities measured at amortized cost Financial liabilities measured at amortized cost are subsequently measured at amortized cost using the effective interest method the gains or losses arising from derecognition or amortization are recognised in profit or loss for the current period. 2) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss (including derivatives that are financial liabilities) include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss at initial recognition.Financial liabilities held for trading (including derivatives that are financial liabilities) are subsequently measured at fair value and all changes in fair value are recognized in the current profit or loss except those relating to hedge accounting.Financial liabilities designated as at fair value through profit or loss are subsequently measured at fair value with changes in fair value recognized in profit or loss except for changes in fair value attributable to changes in the Company's own credit risk which are recognized in other comprehensive income. If the recognition of changes in fair value attributable to changes in the Company's own credit risk in other comprehensive income would result in or magnify accounting mismatches in profit or loss the Company recognizes all changes in fair value (including the amount of the effect of changes in the Company's own credit risk) in the current profit or loss. (4) Impairment of financial instruments The Company accounts for the impairment of financial assets measured at amortized cost accounts receivable and debt instrument investments at fair value through other comprehensive income contract assets lease receivables and financial guarantee contracts and recognizes the loss provision based on expected credit losses. 1) Measurement of expected credit loss The expected credit loss refers to the weighted average of the credit loss of financial instruments that are weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows receivable under the contracts and all cash flows expected to be received discounted at the original effective interest rate which is the present value of all cash shortfalls.The Company considers the reasonable and well-founded information about past events current situation and forecast of future economic situation calculates the probability weighted amount of the present value of the difference between the receivable cash flow of the contract and the expected cash flow with the risk of default as the weight and recognizes the expected credit loss.The Company separately measures the expected credit losses of financial instruments at different stages. The credit risk on a financial instrument has not increased significantly since initial recognition which is in Stage I. The Company measures the loss provision in accordance with expected credit losses for the next 12 months. If the credit risk of financial instruments has increased significantly since initial recognition but no credit impairment has occurred which is in Stage II the Company measures the loss provision in accordance with the expected credit losses over the lifetime of the financial instruments. If 112Beijing Shougang Co. Ltd. Annual Report 2025 the financial instruments have become credit-impairment since initial recognition which is in Stage III the Company measures the loss provision in accordance with the expected credit losses over the lifetime of the financial instruments.For the financial instruments with lower credit risk at the balance sheet date the Company assumes that the credit risk has not increased significantly since initial recognition and measures the loss provision in accordance with expected credit losses for the next 12 months.The lifetime expected credit loss refers to the expected credit loss caused by all possible defaults during the whole expected lifetime. The expected credit losses for the next 12 months refer to the expected credit losses caused by all possible defaults during the next 12 months after balance sheet date (if the expected duration of a financial instrument is less than 12 months then for the expected duration) which are part of the lifetime expected credit losses.When measuring the expected credit loss the maximum maturity period that the Company needs to consider is the maximum contract maturity period (including the consideration of option of renewal) in which the enterprise faces credit risk.For financial instruments in Stage I Stage II and with lower credit risk the Company calculates interest income on the basis of the book balances without deduction of impairment provisions and with effective interest rates. For financial instruments in Stage III the Company calculates interest income on the basis of the book balances minus the impairment provision and with effective interest rates.For receivables such as notes receivable accounts receivable financing receivables and other receivables if the credit risk characteristics of a certain customer are significantly different from those of other customers in the portfolio or if there is a significant change in the credit risk characteristics of that customer the Company will make a provision for bad debts on a single item for the receivables. Except for accounts receivable with individual provision for bad debts the Company divides accounts receivables into combinations based on credit risk characteristics and calculates bad debt provisions on the basis of the combinations. 2) Combination categories for which provision for impairment is made based on a combination of credit risk characteristics and their determination basis The Company evaluates expected credit losses on financial instruments on an individual and combination basis. When evaluating financial instruments on a combination basis the Company categorizes financial instruments into combinations based on common credit risk characteristics.* Combination categories and determination basis of accounts receivable The Company groups accounts receivable by similarity and relevance of credit risk characteristics based on information such as aging nature exposure to credit risk and history of repayment. For accounts receivable the Company determines that aging/overdue aging is the main factor influencing the credit risk; therefore the Company evaluates the expected credit losses based on a comparison table of the overdue days/aging of accounts receivable against the loss given default by referring to its historical credit loss experience. The Company determines the aging based on the invoice date or calculates the overdue aging based on the contractual collection date.* Combination categories and determination basis of notes receivable Taking the acceptors’ credit risk of notes receivable as a common risk characteristic the Company divides them into different combinations and determines its accounting estimates and accounting policies for expected credit losses as follows: a. bank acceptance notes with higher credit ratings; b. bank acceptances with lower credit ratings and commercial acceptance notes. 113Beijing Shougang Co. Ltd. Annual Report 2025 For the notes receivable divided into combinations the Company refers to historical credit loss experience combines current conditions with predictions of future economic conditions and calculates expected credit losses through default risk exposure and expected credit loss rate over the entire duration.* Combination categories and determination basis of other receivables According to the characteristics of credit risk the Company divides other receivables into several combinations. On the basis of the combinations the Company calculates the expected credit losses. The basis of determining the combinations is as follows: imprest and deposit and other current account.For other receivables divided into combinations the Company calculates expected credit losses based on default risk exposure and expected credit loss rate over the next 12 months or the entire duration. For other receivables grouped by aging the aging shall be calculated from the date of recognition. 3) Write-offs of impairment provision If the Company no longer reasonably expects that the contractual cash flows from a financial asset can be recovered fully or partially it writes down the book balance of the financial asset directly. Such write-down constitutes derecognition of the related financial asset. The situation usually occurs when the Company determines that the debtor has no assets or income to generate sufficient cash flows to pay the amount to be written down. However in accordance with the Company’s procedures for recovering due payment the financial asset written down may still be affected by enforcement activities. If the financial asset written down can be recovered later the reversal as impairment losses shall be recognized in profit or loss in the period in which it is recovered. (5) Recognition and measurement of transfer of financial assets For financial asset transfer transactions a financial asset is derecognised when the Company has transferred substantially all the risks and rewards of the asset to the transferee. A financial asset is not derecognised when the Company retains substantially all the risks and rewards of the financial asset.When the Company has neither transferred nor retained substantially all the risks and rewards of the financial asset it either (i) derecognises the financial asset and recognises the assets and liabilities created in the transfer when it has not retained control of the asset or (ii) continues to recognise the transferred asset to the extent of the Company’s continuing involvement in which case the Company also recognises an associated liability. (6) Distinction between financial liabilities and equity instruments and related treatment The Company distinguishes financial liabilities from equity instruments in accordance with the following principles: 1) If the Company cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other financial assets the contractual obligation satisfies the definition of financial liability. Some financial instruments do not explicitly contain terms and conditions for the obligation to deliver cash or other financial assets but may indirectly create contractual obligations through other terms and conditions. 2) If a financial instrument must or could be settled by the Company’s own equity instrument the Company should consider whether the Company’s equity instrument as the settlement instrument is a substitute of cash or other financial assets or is intended to give the holder of the instrument the residual equity in the assets of the issuer after deducting all of its liabilities. If it is the former one the instrument is the issuer’s financial liability; if it is the latter one the instrument is the equity instrument of the issuer. In certain circumstances if a financial instrument contract stipulates that the Company must or may settle the financial instrument with its own equity instrument where the amount of the contractual right or contractual obligation is equal to the quantity of its own equity 114Beijing Shougang Co. Ltd. Annual Report 2025 instrument available or to be delivered multiplied by its fair value at the time of settlement the contract is classified as a financial liability regardless of whether the amount of the contractual right or obligation is fixed or varies wholly or partially based on changes in variables (e.g. interest rates the price of a commodity or the price of a financial instrument) other than the market price of the Company's own equity instrument. (7) Offsetting of financial assets and financial liabilities The financial assets and financial liabilities of the Company shall be presented separately in the statement of financial position and are not allowed to be offset. However when all the following criteria are met the net amount after mutual offset is presented in the statement of financial position: 1) the Company has currently enforceable legal rights to offset the recognized amounts; and 2) the Company intends to settle on a net basis or to realize the financial assets and settle the financial liabilities simultaneously. 12. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.The Company measures related assets or liabilities at fair value and assumes that selling assets or transferring liabilities in an orderly transaction in the principal market of related assets or liabilities; in the absence of a principal market the Company assumes the transaction in the most advantageous market.Principal market (or the most advantageous market) is the market that the Company can enter into on the measurement date. The Company adopts the presumptions used by market participants in achieving the maximum economic value of pricing the assets or liabilities.For financial assets or financial liabilities in the active market the Company uses the quoted price in the active market as fair value. Otherwise the Company uses valuation technique to determine the fair value.Fair value measurement of non-financial assets considers market participants’ ability to generate economic benefits by using the assets for its highest and best use or by selling them to another market participant that would use the asset for its highest and best use.The Company adopts the valuation techniques that are appropriate under current circumstances and for which sufficient data and other supporting information are available to measure fair value giving priority to the use of relevant observable inputs and using unobservable inputs only if the observable inputs are unavailable or not feasible to obtain.All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy described as follows based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 inputs are quoted (unadjusted) market prices in active markets for identical assets or liabilities; Level 2 inputs are observable inputs for related assets or liabilities either directly or indirectly other than the inputs within Level 1; Level 3 inputs are unobservable inputs for related assets or liabilities.For assets and liabilities that are recognized in the financial statements on a recurring basis the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorization at each balance sheet date. 13. Inventories Inventories of the Company include raw materials finished goods lower-valued consumables and self-made semi-finished goods etc. 115Beijing Shougang Co. Ltd. Annual Report 2025 Inventories are accounted for using the perpetual inventory system and are quoted at actual costs when acquired. Raw materials finished goods and self-made semi-finished goods are determined on the weighted average basis. Low-valued consumables are charged with the one-off amortization method and multi-stage amortization method at consumption.On the balance sheet date inventory is measured at the lower of cost and net realizable value.When the cost of inventory is greater than its net realizable value a provision for inventory impairments is made and included in the current profit or loss. Net realisable value is the estimated selling price of inventory in the ordinary course of activities deducted by the estimated costs to completion the estimated selling expenses and related taxes. The net realisable value is measured on the basis of obtained verified evidences and considerations for the purpose of holding inventories and the effect of post balance sheet events.The Company usually makes provisions for inventory impairments based on individual inventory items. For inventory with a large quantity and low unit price a provision for inventory impairments shall be made according to the inventory category.On the balance sheet date if the factors affecting the previous write-down of inventory value have disappeared the provision for inventory impairments shall be reversed within the originally provisioned amount. 14. Long-term equity investments Long-term equity investments of the Company consist of equity investments in subsidiaries joint ventures and associates. (1) Determination of significant influence and joint control The Company's equity investments in investees in which it has significant influence are investments in associates. Significant influence is the power of the Company to participate in the financial and operating policy decisions of the investee but is not control or joint control with other parties over the formulation of those policies. When the Company directly or indirectly through subsidiaries owns 20% of the investee or more but less than 50% of the voting shares it has significant influence on the investee unless there is clear evidence to show that in this case the Company cannot participate in the production and business decisions of the investee. When the Company owns less than 20% of the voting shares it is considered to have significant influence over the investee if it has a representative on the board of directors or a similar authority of the investee or participates in the process of formulating the investee's financial and operating policies or enters into significant transactions with the investee or assigns management personnel to the investee or provides the investee with key technological information etc.An equity investment in an investee in which the Company together with other joint venturers exercises joint control over the investee and has rights to the net assets of the investee is an investment in a joint venture. Joint control is the agreed sharing of control of an arrangement which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. In determining whether there is joint control the Company determines whether the relevant arrangement is controlled collectively by all the participants involved or the group of the participants involved and whether the decisions on the activities related to the arrangement should require the unanimous consent of the participants collectively controlling the arrangement. (2) Accounting treatment The Company initially measures long-term equity investments acquired at initial investment cost.For a long-term equity investment acquired through a business combination involving entities under common control the initial investment cost of the long-term equity investment shall be the share of the 116Beijing Shougang Co. Ltd. Annual Report 2025 book value of the net assets of the party being combined in the consolidated financial statements of the ultimate controlling party at the combination date. If the book value of the net assets of the party being combined at the combination date is a negative amount the initial investment cost is determined as zero.For a long-term equity investment acquired through a business combination involving entities not under common control the initial investment cost of the long-term equity investment should be the combination cost.Except for long-term equity investments resulting from business combinations for a long-term equity investment acquired by paying cash the initial investment cost shall be the actual purchase price paid and expenses directly related to the acquisition of the long-term equity investment taxes and other necessary expenditures; for those acquired by the issue of equity securities the investment cost shall be the fair value of costs associated with additional investment payments.The Company's investments in subsidiaries are accounted for in the separate financial statements using the cost method. When the cost method is adopted long-term equity investments are carried at initial investment cost. When an additional investment is made the book value of the cost of long-term equity investments is increased by the fair value of the cost amount paid for the additional investment and the related transaction costs incurred. Cash dividends or profits declared by the investee are recognized as investment gain at the amount entitled.The equity method is applied for the investments in joint ventures and associates. When the equity method is adopted if the initial investment cost of a long-term equity investment is in excess of the share of investee’s fair value on identifiable net assets the book value of the long-term equity investment remains unchanged; if the initial investment cost of the long-term equity investment falls short of the share of investee’s fair value on identifiable net assets the book value of the long-term equity investment shall be increased by the difference which should be charged to profit or loss in the period of the investment.For a long-term equity investment accounted for under the equity method for subsequent measurement the book value of the long-term equity investment is increased or decreased accordingly with the changes of equity in the investee during the period in which the investment is held. In particular in recognizing the share of net profit or loss of the investee the portion attributable to the Company according to the proportion that should be enjoyed is calculated based on the fair value of each identifiable asset of the investee at the time the investment is acquired in accordance with the Company's accounting policies and accounting period with the offsetting of unrealised profit or loss on internal transactions resulting from transactions with associates and joint ventures that do not constitute operations (internal transaction losses that belong to asset impairment losses are fully recognized) and the net profit of the investee is recognized after adjustment. The Company recognizes a net loss incurred by an investee to the extent that the book value of the long-term equity investment and other long-term equity that in substance constitute a net investment in the investee are written down to zero except to the extent that the Company has an obligation to incur additional losses.The difference between the book value and the actual acquisition price of long-term equity investments disposed of is recognized as the current investment gain.For long-term equity investments accounted for using the equity method the related other comprehensive income previously recognized by the equity method is accounted for on the same basis as that of direct disposal of the related assets or liabilities by the investee upon the termination of the equity method and the amount recognised in the equity on the changes in other equity movements of 117Beijing Shougang Co. Ltd. Annual Report 2025 the investee other than net profit or loss other comprehensive income and profit distribution is transferred in full to the current investment gain upon the termination of the equity method.If the remaining equity after partial disposal of the shares is still accounted for by the equity method the related other comprehensive income previously recognized under the equity method is treated on the same basis as the investee’s direct disposal of the related assets or liabilities and be carried forward on a pro rata basis. The amount recognised in the equity on the changes in other equity movements of the investee other than net profit or loss other comprehensive income and profit distribution is transferred proportionately to the current investment gain.If joint control or significant influence over the investee is lost after partial disposal of the shares the remaining equity after the disposal should be accounted for in accordance with the Accounting Standards for Business Enterprise No. 22 - Recognition and Measurement of Financial Instruments on the day of losing joint control or significant influence and the difference between the fair value of the remaining equity on the day of losing joint control or significant influence and its book value is recognised in profit or loss.If control over the investee is lost after partial disposal of the long-term equity the remaining equity after the disposal has joint control or significant influence over the investee the equity method shall be adopted the difference between the book value of the equity disposed of and the consideration for disposal is recognized as investment gain and the remaining equity shall be adjusted as if it had been recognized under the equity method since the acquisition date; if the remaining equity after the disposal has no joint control or significant influence over the investee the remaining equity should be accounted for in accordance with the Accounting Standards for Business Enterprise No. 22 - Recognition and Measurement of Financial Instruments the difference between the book value of the equity disposed of and the consideration for disposal is recognized as investment gain and the difference between the fair value of the remaining equity on the day of losing control and its book value is recognised in profit or loss.If transactions of the step-by-step disposal of equity to loss of control are not a package deal the Company accounts for each transaction separately. If they are a package deal each transaction is accounted for as a single transaction of disposing of a subsidiary and losing control but the difference between the disposal price and the book value of the long-term equity investment corresponding to the equity disposed of in each transaction before the loss of control is recognized as other comprehensive income and is transferred to profit or loss in the period when control is lost. 15. Fixed assets (1) Recognition of fixed assets Fixed assets represent the tangible assets held by the Company for use in production of goods use in supply of services rental or for administrative purposes with useful lives over one accounting year.Fixed assets are recognised when it is probable that the related future economic benefits will flow into the company and the cost can be measured reliably. The Company's fixed assets include plant and buildings machinery and equipment vehicles electronic equipment industrial furnace metallurgical equipment and others.The Company depreciates all fixed assets except for those that are fully depreciated and continue to be used and land that is separately recorded in the accounts. Depreciation of the fixed assets is calculated on the straight-line basis. (2) Depreciation of fixed assets Category Depreciation method Depreciation period (years) Residual rate Annual depreciation rate Plant and buildings Straight-line method 25-43 5.00 3.80-2.21 Machinery and Straight-line method 12-28 5.00 7.92-3.39 equipment 118Beijing Shougang Co. Ltd. Annual Report 2025 Vehicles Straight-line method 10.00 5.00 9.50 Electronic equipment Straight-line method 10.00 5.00 9.50 Industrial furnace Straight-line method 13.00 5.00 7.31 Metallurgic al Straight-line method 19.00 5.00 5.00 equipment Others Straight-line method 14-22 5.00 6.79-4.32 The depreciation period estimated net residual value rate and depreciation rate of each category of fixed assets are shown above. The Company reviews the estimated useful lives estimated net residual values and depreciation methods of fixed assets at the end of each financial year. 16. Construction in progress Cost of construction in progress is determined based on actual project expenses including necessary project expenses incurred during the construction period borrowing costs that should be capitalized before the project reaches its intended usable state and other related expenses.Self-built fixed assets are transferred to fixed assets while reaching the intended usable state which were recognised in construction in progress before transferring to fixed assets and are not subject to depreciation.When the construction in progress reaches the intended usable state it shall be transferred to fixed assets based on the actual cost of the project. For those that have reached the intended usable state but have not yet processed the final accounts for completion it shall be transferred to fixed assets based on the estimated value. After the final accounts for completion are processed the original estimated value shall be adjusted based on the actual cost but the depreciation already provisioned shall not be adjusted.The standards for transferring construction in progress to fixed assets when it reaches its intended useable state are as follows: Item Standards for transferring to fixed assets Machinery and equipment Achieving the design requirements or contractual standards after installation anddebugging Plant and buildings Preliminary acceptance is qualified and the intended usable state or the standardsspecified in the contract are met 17. Borrowing costs All the borrowing costs that are directly attributable to construction or production of all qualifying assets are capitalized and recorded in relevant assets costs. Other borrowing costs are recognized in profit or loss. Assets qualified for capitalization requirements determined by the Company includes: borrowing costs for fixed assets investment properties inventories and others that require a long period of acquisition and construction or production activities to reach their intended usable or saleable state which are capitalized when expenditures for the assets have been incurred borrowing costs have been incurred and the acquisition and construction or production activities that are necessary to bring the assets to get ready for the intended use or sale have commenced. The capitalization of borrowing costs ceases when the assets being acquired or constructed are substantially ready for their intended use or sale and borrowing costs incurred thereafter are recognized in profit or loss. Capitalization of borrowing costs is suspended during the period in which the acquisition and construction or production process is interrupted abnormally and the interruption lasts for more than three consecutive months until the acquisition and construction or production activity is resumed.For each accounting period within the capitalization period the Company determines the amount of borrowing costs to be capitalized in accordance with the following methods: for specific borrowings the amount is determined on the basis of the interest expenses actually incurred in the current period net of 119Beijing Shougang Co. Ltd. Annual Report 2025 interest income earned on the unused borrowed funds deposited in the bank or investment gain earned on temporary investments; for general borrowings the amount is determined by applying a capitalization rate to the weighted average of accumulated capital expenditure that exceeds the specific borrowings.The capitalization rate is calculated based on the weighted average interest rate of general borrowings. 18. Intangible assets (1) Useful life and the basis for its determination estimation amortization method or review procedure Intangible assets include land use rights software and etc. They are measured at actual cost at the time of acquisition. For intangible assets acquired the actual cost is determined by the actual price paid and related other expenses; for intangible assets invested by investors the actual cost is determined by the value agreed in the investment contract or agreement but if the agreed value in the contract or agreement is not fair the actual cost is determined by the fair value.The amortization methods and amortization periods of various intangible assets of the Company are as follows: Category Amortisation method Amortization period (years) Basis for determination Software Straight-line method 5-10 The period in which economic benefits areexpected to bring to the Company Land use rights Straight-line method 40-50 Legal useful life The Company's data resources are amortized based on the period in which economic benefits are expected to be brought to the Company.The amortization amount is charged to the cost of the related assets and profit or loss according to the beneficiaries. The estimated useful life and amortization method of intangible assets with finite useful lives are reviewed at the end of each year and any changes are treated as changes in accounting estimates. (2) The scope of research and development expenditure and related accounting treatment The Company’s research and development expenditure is directly related to the R&D activities including salaries of R&D personnel technical service fees testing fees and etc. The salaries of R&D personnel are allocated to research and development expenditure based on project working hours.Expenditure on internal research and development projects is classified into expenditure on the research stage and expenditure on the development stage.Expenditure on the research stage is recognised in profit or loss when incurred.Expenditure on the development stage is capitalized only when: the technical feasibility of completing the intangible asset so that it is available for use or sale; the intention to complete the intangible asset is to use or sell it; the method of generating economic benefits by the intangible asset including that the intangible asset can be proved that the output or the intangible asset itself has a market or if it is to be used internally the usefulness of the intangible asset also need to be proved; the availability of adequate technical financial and other resources to complete the development and the ability to use or sell the intangible asset; the expenditure attributable to the development stage can be measured reliably. Otherwise it shall be presented in profit or loss.The research and development projects of the Company will enter into the development stage after meeting the above conditions and passing through the studies of technical feasibility and economic feasibility and the projects approval.Capitalized expenditure on the development stage is presented as “Development expenditures” in the statement of financial position and shall be transferred to intangible assets when the project is completed to get ready for its intended use. 120Beijing Shougang Co. Ltd. Annual Report 2025 19. Impairment of long-term assets The Company examines long-term equity investments investment properties measured using the cost model fixed assets construction in progress right-of-use assets and intangible assets with finite useful lives at each balance sheet date and performs impairment tests when indicators of impairment exist. Goodwill intangible assets with indefinite useful lives and development expenditures of assets that have not yet reached the intended use are tested for impairment at the end of each year regardless of whether there is an indicator of impairment (1) Impairment of non-current assets other than financial assets (except goodwill) The Company determines the recoverable amount of an asset based on the higher of the asset's fair value less costs of disposal and the present value of the asset's estimated future cash flows when testing for impairment. After the impairment test if the book value of the asset exceeds its recoverable amount the difference is recognized as an impairment loss.The recoverable amount of an asset is estimated on an individual basis unless it is not applicable in which case the recoverable amount is determined for the asset group to which the asset belongs. An asset group is recognized based on whether the major cash inflows generated by the asset group are independent of those from other assets or asset groups. (2) Impairment of goodwill The Company apportions the book value of goodwill arising from a business combination to the related asset group or to a combination of related asset groups if it is difficult to apportion to the related asset group on a reasonable basis from the acquisition date. When performing the impairment test on the related asset group or combination of asset groups containing goodwill if there is an indication that the goodwill-related asset group and combination of asset groups is prone to impair the asset group or combination of asset groups that does not contain goodwill shall be tested for impairment first the recoverable amount shall be calculated and compared with the relevant book value and the corresponding impairment loss shall be recognized; and then the asset group or combination of asset groups containing goodwill shall be tested for impairment. If the recoverable amount is lower than the book value the amount of the impairment loss should be offset against the book value of the goodwill allocated to the asset group or combination of asset groups first and then against the book value of the other assets in the asset group or combination of asset groups on a pro rata basis according to the proportion of the book value except for the goodwill.Impairment losses on the above assets cannot be reversed in subsequent accounting periods after recognition. 20. Long-term prepaid expenses The long-term prepaid expenses of the Company are recorded as the actual cost and evenly amortized on a straight-line basis over the expected beneficial period. For the long-term prepaid expense items that cannot benefit the later accounting period the amortized value is fully recognized in profit or loss. 21. Employee benefits (1) Accounting treatment of short-term employee benefits Employee benefits of the Company include short-term employee benefits post-employment benefits termination benefits and other long-term employee benefits. Benefits provided by the enterprise to employees' spouses children dependents families of deceased employees and other beneficiaries etc. are also classified as employee benefits. 121Beijing Shougang Co. Ltd. Annual Report 2025 Short-term employee benefits mainly include employee salaries and bonuses social security contributions such as medical insurance work-related injury insurance and maternity insurance paid for employees on a prescribed basis and at a prescribed rate and housing fund and etc. Short-term employee benefits actually incurred are recognized as a liability in the accounting period in which the employees provide services and are charged to profit or loss or to costs of related assets depending on the object of benefit. (2) Accounting treatment of post-employment benefits Post-employment benefits mainly include basic pension insurance unemployment insurance enterprise pension and etc. which are classified as defined contribution plans and defined benefit plans according to the risks and obligations assumed by the Company. Contributions made to a separate entity under a defined contribution plan in exchange for services rendered by employees during the accounting period at the balance sheet date are recognized as a liability and charged to profit or loss or to costs of related assets depending on the object of benefit. (3) Accounting treatment of termination benefits The termination of employment relationships with employees prior to the expiration of their employment contracts or proposals for compensation to encourage employees to voluntarily accept downsizing. When the Company cannot unilaterally withdraw the termination benefits provided as a result of a termination plan or a proposal for downsizing it recognizes employee compensation liabilities arising from the termination benefits at the earlier of the date on which the Group recognizes the costs related to the restructuring involving the payment of the benefits and the date the Company recognizes the costs related to the reorganization involving the payment of the termination benefits in profit or loss.However termination benefits that are not expected to be fully paid twelve months after the end of the annual reporting period are treated as other long-term employee benefits.The employee internal retirement plan is accounted for according to the same principles as the termination benefits described above. The Company recognizes the wages and social insurance contributions paid for internally retired employees during the period from the date the employee ceases to provide services to the date of normal retirement as current period profit or loss (termination benefits) when the criteria for recognizing a provision are met. (4) Accounting treatment of other long-term employee benefits Other long-term employee benefits provided by the Company to its employees are accounted for as defined contribution plans if they meet the criteria for such plans; otherwise they are accounted for as defined benefit plans. 22. Provisions If the operations related to contingencies satisfy all the following conditions a provision shall be recognized by the Company: the obligation is a present obligation assumed by the Company; it is probable that an outflow of economic benefits of the enterprise will be required to settle the obligation; and a reliable estimate can be made for the amount of the obligation.Provisions are initially measured at the best estimate of the expenditure required to settle the present obligation after considering risks and uncertainties associated with the contingency and the time value of money. The Company reviews the current best estimate and adjusts the book value of the provisions at the balance sheet date.Estimated liabilities expected to be settled within one year from the balance sheet date are classified as current liabilities. 122Beijing Shougang Co. Ltd. Annual Report 2025 23. Share-based payments Equity-settled share-based payments used in exchange for services rendered by employees are measured at the fair value of the equity instruments granted to employees on the date of the grant. If the right may be exercised immediately after the grant the fair value of equity instruments shall on the date of the grant be included in the relevant costs or expenses and the capital reserve shall be increased accordingly. If the right can not be exercised until the services during the vesting period are completed or until the specified performance conditions are met then on each balance sheet date within the vesting period the services obtained in the current period shall based on the best estimate of the number of vested equity instruments be included in the relevant costs or expenses and the capital reserve at the fair value of the equity instruments on the date of the grant. If the terms of equity-settled share-based payments are modified services acquired are recognized at least as if the terms had not been modified.In addition if the modification increases the fair value of the equity instruments granted or the change is beneficial to the employees at the date of the modification an increase of services obtained is recognized accordingly.If an equity-settled share-based payment is canceled it is treated as accelerated vesting on the date of the cancellation and the unrecognized amount is recognized immediately. If employees or other parties can choose to meet non-vesting conditions but they are not met in the vesting period the Company will treat them as a cancellation of equity-settled share-based payments. However if a new equity instrument is granted and it is determined on the date of grant of the new equity instrument that the new equity instrument granted is intended to replace the equity instrument that was canceled the replacement equity instrument granted is treated in the same manner as that of the modification of the terms and conditions of the original equity instrument.Cash-settled share-based payments shall be measured in accordance with the fair value of the liability that is recognised based on the shares or other equity instruments undertaken by the Company.If the right may be exercised immediately after the grant the fair value of the liability undertaken by the Company shall on the date of the grant be included in the relevant costs or expenses and the liabilities shall be increased accordingly. If the right can not be exercised until the services during the vesting period are completed or until the specified performance conditions are met then on each balance sheet date within the vesting period the services obtained in the current period shall based on the best estimate of the information about the exercisable right be included in the relevant costs or expenses at the fair value of the liability undertaken by the Company and the corresponding liabilities are adjusted.On each balance sheet date and on each account date prior to the settlement of the relevant liabilities the Company re-measures the fair value of the liabilities and include the changes in the current profit or loss. 24. Revenue Disclosure of accounting policies used for revenue recognition and measurement by type of business (1) General principle Revenue is recognized when the Company has satisfied its performance obligations in the contract that is when the customer obtains control of the relevant goods or services. Acquiring control of the good or service in question means being able to dominate the use of that good or the provision of that service and derive almost total economic benefit from it.Performance obligations are contractual commitments where the Company transfers clearly distinguishable goods to the customer. The Company’s performance obligation is fulfilled within a certain period of time if it meets one of the following conditions; otherwise a performance obligation is fulfilled 123Beijing Shougang Co. Ltd. Annual Report 2025 at a certain point in time:* The customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs; * The customer can control the asset created or enhanced during the Company’s performance; * The Company’s performance does not create an asset with an alternative use to it and the Company has an enforceable right to payment for performance completed to date.For performance obligation satisfied over time the Company recognises revenue over time by measuring the progress towards complete satisfaction of that performance obligation. When the outcome of that performance obligation cannot be measured reasonably but the Company expects to recover the costs incurred in satisfying the performance obligation the Company recognises revenue only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.For performance obligations performed at a certain point in time the Company recognizes revenue at the point in time when the customer obtains control of relevant goods. In determining whether the customer has acquired control of the goods the Company considers the following indications comprehensively: * The Company has a present right to payment for the goods as the customer obtains the current payment obligation for the goods; * The Company has transferred the legal title of the goods as the customer has obtained the legal title of the goods; * The Company has transferred physical possession of the goods to the customer as the customer has obtained the physical possession of the goods;* The Company has transferred the significant risks and rewards of legal title of the goods to the customer as the customer has obtained the significant risks and rewards of legal title of the goods; * The customer has accepted the goods; * Other indications that the customer has obtained control of goods.Where a contract contains two or more performance obligations the Company apportions the transaction price to each individual performance obligation at the beginning of the contract in proportion to the relative share of the individual selling price of the goods or services promised by each individual performance obligation and measures revenue based on the transaction price apportioned to each individual performance obligation. (2) Specific methods The Company's operating income consists primarily of revenues from sale of goods and rendering of services.* Revenue from sale of goods Contracts for the sale of goods between the Company and its customers usually only involves the performance obligations of the transferring of goods such as steel. The Company generally recognizes revenue based on the following considerations taking into account the timing of control transfer. This includes obtaining the current collection rights of the goods the transfer of the main risks and rewards of the ownership of the goods the transfer of the legal ownership of the goods the transfer of the physical assets of the goods and the acceptance of the goods by the customer.* Revenue from rendering of services The service contract between the Company and its customers usually includes performance obligations for labor services technical consulting or technical services. As a result of the satisfaction of the performance obligation the Company the customers obtain and consume the economic benefits of the service while the Company provides the service simultaneously. The Company is entitled to recover from the accumulative performance of the contract that has been completed to date except when progress of the performance cannot be reasonably determined. The Company determines the progress of 124Beijing Shougang Co. Ltd. Annual Report 2025 the performance of the services provided in accordance with the input method. When the progress of the performance cannot be reasonably determined and the costs incurred by the Company are expected to be compensated the revenue will be recognized based on the amount of costs incurred until the progress of the performance can be reasonably determined. 25. Government grants Government grants are recognized when the conditions attached to them can be met and they are receivable. Government grants are measured at the amount actually received if they are monetary assets.For subsidies allocated according to a fixed flat rate or when there is conclusive evidence at year-end that the relevant conditions specified in the financial support policy can be met and the financial support funds are expected to be received the subsidies are measured at the amount receivable; government grants are measured at fair value if they are non-monetary assets or at a nominal amount (RMB 1) if the fair value cannot be reliably obtained.The Company's government grants include asset-related government grants and revenue-related government grants. Among them asset-related government grants refer to government grants obtained by the Company for the acquisition and construction or other formation of long-term assets; revenue- related government grants refer to government grants other than asset-related government grants. If the recipients of the grants are not specified in government documents the Company will make judgments in accordance with the above principle of distinction and if it is difficult to distinguish the grants they will be classified as revenue-related government grants as a whole.Asset-related government grants are recognized as deferred income. Asset-related government grants recognized as deferred income are recognized in profit or loss in accordance with a reasonable and systematic method over the useful life of the related assets. If the related assets are sold transferred scrapped or destroyed before the end of their useful lives the unallocated balance of the related deferred income is transferred to profit or loss in the period in which the assets are disposed of.Revenue-related government grants are recognized in deferred income if they are used to compensate for related costs expenses or losses in subsequent periods and in profit or loss or offset against the related costs in the period in which the related costs expenses or losses are recognized. If they are used to compensate for related costs expenses or losses already incurred they are directly recognized in profit or loss or offset against the related costs. Government grants measured at nominal amounts are directly included in the current profit or loss. 26. Deferred tax assets and deferred tax liabilities The Company's deferred tax assets and deferred tax liabilities are recognized on the basis of (temporary differences) arising from differences between the tax bases of assets and liabilities and their book values as well as from differences between the tax bases of items that are not recognized as assets and liabilities but whose tax bases can be determined in accordance with the provisions of the tax law and their book values.The Company recognizes deferred tax liabilities for all taxable temporary differences except: (1) temporary differences arising from the initial recognition of goodwill or the initial recognition of assets or liabilities arising from transactions other than business combinations that affect neither the accounting profit nor taxable income (or deductible losses); and (2) taxable temporary differences associated with investments in subsidiaries associates and joint ventures where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not be reversed in the foreseeable future. 125Beijing Shougang Co. Ltd. Annual Report 2025 The Company recognizes deferred tax assets for deductible temporary differences deductible losses and tax credits to the extent of possible future taxable income for offsetting deductible temporary differences deductible losses and tax credits except for the following situations: (1) temporary differences arise from the initial recognition of assets or liabilities arising from transactions other than business combinations that affect neither accounting profit nor taxable income; and (2) deductible temporary differences related to investments in subsidiaries associates and joint ventures cannot meet all the following conditions: temporary differences are likely to be reversed in the foreseeable future and it is probable to obtain taxable income in the future that can be used to offset deductible temporary differences.At the balance sheet date deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to be applied in the period in which the asset is recovered or the liability is settled.Deferred tax assets and deferred tax liabilities are stated at net amounts after offsetting when the following conditions are all met: the Company has the legal right to settle current tax assets and current deferred tax liabilities on a net basis; the deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax authority on the same taxable entity or on different taxable entities but in each future period in which significant deferred tax assets and deferred tax liabilities are reversed the taxpayers concerned intend to settle current tax assets and current tax liabilities on a net basis or to acquire assets and settle liabilities simultaneously. 27. Lease (1) Accounting for leases as a lessee A. Identification of lease At the contract start date the Company assesses whether the contract is a lease or contains a lease.A contract is a lease or contains a lease if one party to the contract cedes the right to control the use of one or more identified assets for a specified period of time in exchange for consideration.B. The Company as a lessee 1) Lease recognition Except for short-term leases and leases of low-value assets the Company recognizes right-of-use assets and lease liabilities for leases on the lease term commencement date.A right-of-use asset which represents the right of the Company as lessee to use a leased asset over the lease term is initially measured at cost. Such costs include: * the initial measurement amount of the lease liability;* lease payments made on or before the commencement date of the lease term net of amounts related to lease incentives received; * initial direct costs incurred; and * costs expected to be incurred to dismantle and remove the leased asset to rehabilitate the site on which the leased asset is located or to restore the leased asset to the condition agreed upon under the terms of the lease except for those attributable to the production of inventories. If the Company remeasures a lease liability in accordance with the relevant provisions of the leasing standards the book value of the right-of-use asset is adjusted accordingly.The Company depreciates right-of-use assets on a straight-line basis based on the manner in which the economic benefits associated with the right-of-use assets are expected to be consumed. A leased asset is depreciated over its remaining useful life if it is reasonably certain that the ownership of the leased asset will be obtained by the end of the lease term; if it is not reasonably certain that the ownership of the leased asset will be obtained by the end of the lease term the leased asset is depreciated over the shorter of the lease term and the remaining useful life of the leased asset. The 126Beijing Shougang Co. Ltd. Annual Report 2025 amount of provision for depreciation is charged to the cost of the related assets or to current profit or loss depending on the use of the right-of-use assets.The Company initially measures the lease liability at the present value of the lease payments outstanding at the commencement date of the lease term. Lease payments include: * fixed payments and substantially fixed payments net of amounts related to lease incentives;* variable lease payments that depend on indices or ratios; * the exercise price of the purchase option in the event that the Company reasonably determines that the purchase option will be exercised; * payments to be made upon exercise of the termination option in the event that the lease term reflects that the Company will exercise its termination option; and * payments expected to be due based on the residual value of the guarantees provided by the Company.In calculating the present value of lease payments the Company uses the present value calculated using the interest rate implicit in the lease for initial measurement and the incremental borrowing rate is used as the discount rate if the interest rate implicit in the lease cannot be determined. The Company calculates interest expense on lease liabilities at a fixed periodic rate for each period of the lease term and recognizes it in profit or loss for the current period except when it should be capitalized.Subsequent to the commencement date of the lease term the Company increases the carrying amount of the lease liability when it recognizes interest on the lease liability and decreases the carrying amount of the lease liability when it makes lease payments. When there is a change in the substantially fixed payments a change in the amount expected to be payable for the residual value of the guarantee a change in the index or rate used to determine the lease payments a change in the appraisal of or the actual exercise of an option to purchase an option to renew or an option to terminate the Company remeasures the lease liability based on the present value of the lease payments as a result of the change. 2) Short-term lease and low-value asset lease The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases with lease terms of less than 12 months and leases of low-value assets where the individual leased assets are brand-new assets. The Company recognizes lease payments for short-term leases and low-value asset leases in the cost of the related assets or in current profit or loss on a straight-line basis or other systematic reasonable basis in each period of the lease term. (2) Accounting for leases as a lessor If a lease transfers substantially all the risks and rewards associated with the ownership of the leased asset the Company as the lessor classifies the lease as a finance lease and leases other than this type as operating leases. 1) Finance leases On the commencement date of the lease term the Company recognizes finance lease receivables for finance leases and derecognizes the finance lease assets. When the Company makes an initial measurement of finance lease receivables the net lease investment is used as the recorded value of the finance lease receivables.The net lease investment is the sum of the unguaranteed residual value and the present value of the lease payments not yet received at the commencement date of the lease term discounted at the interest rate implicit in the lease. The Company calculates and recognizes interest income for each period of the lease term based on a fixed periodic interest rate. Variable lease payments acquired by the Company which are not included in the net lease investment measurement are recognized in profit or loss for the period in which they are actually incurred. 2) Operating lease 127Beijing Shougang Co. Ltd. Annual Report 2025 The Company recognizes lease receipts from operating leases as rental income using the straight- line method over the respective periods of the lease term.The initial direct costs incurred by the Company in connection with operating leases shall be capitalized to the cost of the underlying leased assets and amortized to current profit or loss over the lease terms on the same recognition basis as rental income. Variable lease payments acquired by the Company in connection with operating leases that are not included in the lease receipts are recognized in profit or loss when they are actually incurred.If a change in an operating lease occurs the Company accounts for it as a new lease from the effective date of the change and the amount of lease receipts received in advance or receivable in connection with the lease before the change is considered to be the amount of lease receipts for the new lease. 28. Safety fund and maintenance fee The Company has accrued safety production fees in accordance with the relevant provisions of the Ministry of Finance and the Ministry of Emergency Management's Cai Zi [2022] No. 136. The safety production expenses and maintenance expenses are included in the cost of relevant products or current profit and loss when accrued and are also included in the "special reserve" account.When safety funds and maintenance fees are utilized in compliance with relevant regulations if the costs incurred can be categorized as expenditure the costs incurred should be charged against the special reserve; if the reserve is used to build up fixed assets the costs should be charged to construction in progress and reclassified to fixed assets when the projects reach the status ready for intended use.Meantime expenditures in building up fixed assets are directly charged against the special reserve with the accumulated depreciation recognized at the same amount and the fixed assets will not be depreciated in the future. 29. Share repurchase The shares repurchased by the Company shall be managed as treasury shares before cancellation or transfer and all expenses related to repurchased shares shall be transferred to the cost of treasury shares. The consideration and transaction costs paid in share repurchase reduce owner's equity and no gains or losses are recognized when repurchasing transferring or canceling the company's shares.When transferring treasury shares the difference between the actual amount received and the book value of the treasury shares shall be included in the capital reserve. If the capital reserve is insufficient to offset the surplus reserve and undistributed profits shall be offset. Cancellation of treasury shares shall reduce the share capital based on the face value and the number of cancelled shares and offset the capital reserve based on the difference between the book balance and face value of cancelled treasury shares. If the capital reserve is insufficient to offset offset the surplus reserve and undistributed profits. 30. Significant accounting judgments and estimates The Company provides continuous assessment of the reasonable expectations of future events the critical accounting estimates and key assumptions based on historical experience and other factors. The critical accounting estimates and key assumptions that are likely to lead to significant adjustment risks of the carrying amount of assets and liabilities for the next accounting period are listed as follows: Classification of financial assets The main judgments of the Company involved in determining the classification of financial assets includes the analysis of business models and the characteristics of contract cash flows etc. 128Beijing Shougang Co. Ltd. Annual Report 2025 At the level of financial assets portfolio the Company determines the business model for managing financial assets taking into account factors such as methods of evaluating and reporting financial assets performance to key managers the risks of affecting financial assets performance and risk management methods and the way in which relevant business managers are paid.In assessing whether the contract cash flow of financial assets is consistent with the basic lending arrangements the Company has the following judgments: whether the principal’s time distribution or amount may change during the lifetime for early repayment and other reasons; whether the interest only includes the time value of money credit risk other basic lending risks and the consideration with cost and profit. For example whether the advance payment only reflects the unpaid principals and interests based on the unpaid principal and reasonable compensation paid for the early termination of the contract.Measurement of expected credit loss of account receivables The Company calculates the expected credit losses of accounts receivable through default risk exposure and expected credit losses rate and determines the expected credit losses rate on the basis of default probability and default loss rate. In determining the expected credit losses rate the Company uses the experience of internal historical credit loss and adjusts the historical data with current situation and forward-looking information. In considering forward-looking information the indicators include the risks of economic downturn external market environment technological environment and changes in customer conditions. The Company monitors and reviews regularly the assumptions related to the calculation of expected credit losses.Deferred tax assets Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary difference and unused tax credit can be utilized.Significant management judgement is required to determine the amount of deferred tax assets that can be recognized based upon the likely timing and level of future taxable profits together with tax planning strategies.Determination of unlisted equity investment fair value The fair value of unlisted equity investment is the estimated future cash flow discounted by the current discount rate of the project with similar terms and risk characteristics. The valuation requires the Company to estimate the expected future cash flow and discount rate and is therefore uncertain. Under limited circumstances if the information used to determine the fair value is insufficient or the possible estimates of the fair value are widely distributed and the cost represents the best estimate of the fair value within the range the cost could represent the appropriate estimate of the fair value within the distribution range. 31. Changes in significant accounting policies and estimates (1) Changes in significant accounting policies □ Applicable √ Non-applicable (2) Changes in significant accounting estimates □ Applicable √ Non-applicable (3) Adjustments to financial statements at the beginning of the year of implementation of new accounting standards for the first time starting in 2025 □ Applicable √ Non-applicable 129Beijing Shougang Co. Ltd. Annual Report 2025 VI. Tax 1. Main types of taxes and corresponding tax rates Tax type Tax basis Tax rate% Taxable Value Added (The taxable amount is calculated by multiplying the taxable Value-added tax sales amount by the applicable tax rate and deducting the input tax allowed for 13/9/6 deduction in the current period) Consumption tax City construction and maintenance Levy based on the actual paid value-added tax 7/5 tax Income tax Taxable income 25 Education surcharge Levy based on the actual paid value-added tax 3 Local education surcharge Levy based on the actual paid value-added tax 2 2. Tax preferential benefits and approvals On 29 October 2024 the Company obtained the high-tech enterprise certificate issued by the Beijing Municipal Science and Technology Commission with the certificate number GS202411000032 and the certificate is valid for three years. Therefore it is entitled to the preferential income tax rate of 15%.On 29 October 2024 Cold-R Co. a subsidiary of the Company obtained the high-tech enterprise certificate issued by Beijing Municipal Science and Technology Commission with the certificate number GS202411000048 and the certificate is valid for three years. Therefore it is entitled to the preferential income tax rate of 15%.On 16 December 2024 Jingtang Co. a subsidiary of the Company obtained the high-tech enterprise certificate issued by the Hebei Science and Technology Commission with the certificate number GR202413003235 and the certificate is valid for three years. Therefore it is entitled to the preferential income tax rate of 15%.On 18 October 2022 Zhixin Co. a subsidiary of the Company obtained the high-tech enterprise certificate issued by Hebei Science and Technology Commission with the certificate number GR202213001060and the certificate is valid for three years. According to the “Announcement on the Filing of the First Batch ofHigh-Tech Enterprises Recognized and Filed by the Hebei Provincial Accreditation Institution in 2025” issued by the Office of the National Leading Group for the Administration of High-Tech Enterprise Accreditation on 24 November 2025 Zhixin Co. has been re-accredited as a high-tech enterprise. Therefore it is entitled to the preferential income tax rate of 15%.On 3 September 2023 the Ministry of Finance and the State Taxation Administration issued the “Noticeon the Policy of Adding and Deducting Value-Added Tax for Advanced Manufacturing Enterprises” (Caishui [2023] No. 43) allowing advanced manufacturing enterprises to add 5% of the current deductible input tax to offset the payable value-added tax from 1 January 2023 to 31 December 2027. According to this policy the Company and the aforementioned subsidiaries enjoyed the above preferential policies for the year 2025.VII. Notes to consolidated financial statements 1. Cash at bank and on hand Unit: RMB Yuan Item Closing balance Opening balance Cash on hand 43303.90 50977.80 Bank deposits 10713542757.11 8748150794.84 Other monetary assets 128874775.84 78435699.32 Total 10842460836.85 8826637471.96 Including: Total amount deposited abroad 7670147.49 259782432.11 130Beijing Shougang Co. Ltd. Annual Report 2025 Other notes: Note 1: At the end of the period except for various types of security deposits of RMB 36985135.17 and frozen funds of RMB 8530000.00 the Company has no funds pledged guaranteed or frozen or overseas balances that are restricted to be remitted back among cash at bank and on hand.Note 2: Bank deposits include interest receivable from deposits of RMB 6568328.40. This part of interest does not belong to “cash and cash equivalents.” 2. Notes receivable (1) Presentation of notes receivable by category Unit: RMB Yuan Item Closing balance Opening balance Bank acceptance notes 1776645932.61 1742934149.19 Commercial acceptance notes 1016587587.47 2521394146.74 Total 2793233520.08 4264328295.93 (2) Classified by bad debt provision method Unit: RMB Yuan Closing balance Opening balance Category Book balance Bad debt provision Book Book balance Bad debt provision Book Amount Proportion Amount Accrual value ratio Amount Proporti on Amount Accrual value ratio Includin g: Assessed bad debt 279602 279602 279323 426859 426859 426432 provision 9549.63 100.00% 9.55 0.10% 3520.08 6892.82 100.00% 6.89 0.10% 8295.93 in portfolios Including: Bank acceptanc e notes and commerci al 279602 100.00% 279602 0.10% 279323 426859 426859 426432acceptanc 9549.63 9.55 3520.08 6892.82 100.00% 6.89 0.10% 8295.93 e notes with lower credit ratings Total 279602 100.00% 279602 0.10% 279323 426859 426859 4264329549.63 9.55 3520.08 6892.82 100.00% 6.89 0.10% 8295.93 Assessed bad debt provision in portfolios: Bad debt provision made by portfolio of credit risk characteristics Unit: RMB Yuan Closing balance Name Book balance Bad debt provision Accrual ratio Assessed bad debt provision in portfolios 2796029549.63 2796029.55 0.10% Total 2796029549.63 2796029.55 If the provision for bad debts on notes receivable is based on a general model of expected credit losses: □ Applicable √ Non-applicable (3) Provision recovery or reversal of bad debt provision during the period Provision for bad debts in the current period: Unit: RMB Yuan 131Beijing Shougang Co. Ltd. Annual Report 2025 Category Opening Amount of change during the period Closing balance Accrual Recovered Write Oth balanceor reversed -offs ers Notes receivable with expected credit losses accrued on a portfolio basis 4268596.89 -1472567.34 2796029.55 Total 4268596.89 -1472567.34 2796029.55 Of which the amount of bad debt provision recovered or reversed during the period is significant: □ Applicable √ Non-applicable (4) Notes receivable endorsed or discounted by the Company at the end of the period and not yet due at the balance sheet date Unit: RMB Yuan Item Amount derecognized at the end of the Amount not derecognized at the end ofperiod the period Bank acceptance notes 1478406214.30 Commercial acceptance notes 946823488.94 Total 2425229703.24 (5) Notes transferred to accounts receivable by the Company due to non-performance by the drawer at the end of the period Unit: RMB Yuan Item Amounts transferred to accounts receivable at the end of the period Commercial acceptance notes 2341685.19 Total 2341685.19 3. Accounts receivable (1) Disclosed by the aging Unit: RMB Yuan Aging Closing book balance Opening book balance Within 1 year (including 1 year) 1715915482.01 1659756660.19 1-2 years 19932119.42 45084109.50 2-3 years 8261209.79 3659572.36 Over 3 years 3631461.02 11773358.86 3-4 years 3808946.24 4-5 years 902088.00 2952035.21 Over 5 years 2729373.02 5012377.41 Total 1747740272.24 1720273700.91 (2) Classified by bad debt provision method Unit: RMB Yuan Closing balance Opening balance Category Book balance Bad debt provision Book Book balance Bad debt provision Book Amount Proporti Accrual valueon Amount ratio Amount Proporti Amount Accrual valueon ratio Assessed bad debt provisio 447202 n 6.25 0.26% 447202100.00%6753806753806.258.850.39%8.85100.00% individu ally Includin g: Assessed bad debt provisio 174326 99.74% 738920 4.24% 166937 171351 750138 163850n in 8245.99 17.46 6228.53 9892.06 99.61% 08.29 4.38% 6083.77 portfolio s 132Beijing Shougang Co. Ltd. Annual Report 2025 Includin g: Total 174774 783640 166937 1720270272.24 100.00% 43.71 4.48% 6228.53 3700.91 100.00% 817676163850 17.144.75%6083.77 Assessed bad debt provision individually: Assessed bad debt provision individually Unit: RMB Yuan Opening balance Closing balance Name Book balance Bad debtprovision Book balance Bad debt provision Accrual ratio Reason for bad debts Overdue Low possibility recourse notes 3137797.19 3137797.19 2341685.19 2341685.19 100.00% to berecovered Involved in Other 3616011.66 3616011.66 2130341.06 2130341.06 100.00% litigation lowreceivables possibility to be recovered Total 6753808.85 6753808.85 4472026.25 4472026.25 Assessed bad debt provision in portfolios: Assessed bad debt provision in portfolios Unit: RMB Yuan Closing balance Name Book balance Bad debt provision Accrual ratio Within 1 year (including 1 year) 1715915482.01 61707839.37 3.60% 1-2 years 19932119.42 6351122.50 31.86% 2-3 years 6518556.56 4930967.59 75.65% Over 3 years 902088.00 902088.00 100.00% Total 1743268245.99 73892017.46 If the provision for bad debts on accounts receivable is based on a general model of expected credit losses: □ Applicable √ Non-applicable (3) Provision recovery or reversal of bad debt provision during the period Provision for bad debts in the current period: Unit: RMB Yuan Amount of change during the period Category Opening balance Recovered or Writ Closing balanceAccrual reversed e- Othersoffs Assessed bad debt provision individually 6753808.85 2281782.60 4472026.25 Accounts receivable with bad debt provision by portfolio of credit risk 75013808.29 -1097524.53 -24266.30 73892017.46 characteristics Total 81767617.14 -1097524.53 2281782.60 -24266.30 78364043.71 (4) Accounts receivable and contract assets of the top five year-end balances grouped by party in arrears Unit: RMB Yuan As a percentage of Closing balance of Closing balance of Closing balance of the total closing provision for bad Company name accounts Closing balance of accounts balance of debts on accounts receivable contract assets receivable and accounts receivable andcontract assets receivable and impairment of contract assets contract assets Client 1 339110707.32 339110707.32 19.40% 12839311.28 Client 2 242741924.31 242741924.31 13.89% 9181116.63 Client 3 117857413.10 117857413.10 6.74% 4457666.96 Client 4 77074835.52 77074835.52 4.41% 2913428.78 Client 5 66536451.43 66536451.43 3.81% 2516577.73 133Beijing Shougang Co. Ltd. Annual Report 2025 Total 843321331.68 843321331.68 48.25% 31908101.38 4. Financing receivable (1) Classification of financing receivable Unit: RMB Yuan Item Closing balance Opening balance Notes receivable 2127981225.71 3626515941.48 Total 2127981225.71 3626515941.48 (2) Classified by bad debt provision method Unit: RMB Yuan Closing balance Opening balance Category Book balance Bad debt provision Book Book balance Bad debt provision Book Amount Proporti Amount Accrual value Amount Proporti Amount Accrual valueon ratio on ratio Includin g: Assessed bad debt provisio 212840 100.00% 425681.n in 6907.08 37 0.02% 212798362724725448.362651 1225.711389.75100.00%270.02%5941.48 portfolio s Includin g: Bad debt provisio n by portfolio 212840 425681. 212798 362724 725448. 362651 of credit 6907.08 100.00% 37 0.02% 1225.71 1389.75 100.00% 27 0.02% 5941.48 risk characte ristics Total 2128406907.08 100.00% 425681. 370.02% 212798362724725448.362651 1225.711389.75100.00%270.02%5941.48 Assessed bad debt provision in portfolios: Assessed bad debt provision in portfolios Unit: RMB Yuan Closing balance Name Book balance Bad debt provision Accrual ratio Assessed bad debt provision in portfolios 2128406907.08 425681.37 0.02% Total 2128406907.08 425681.37 (3) Provision recovery or reversal of bad debt provision during the period Unit: RMB Yuan Opening Amount of change during the periodCategory balance Recovered or Charged off or Other Closing balanceAccrual reversed written off changes Bad debt provision made by portfolio of credit risk 725448.27 -299766.90 425681.37 characteristics Total 725448.27 -299766.90 425681.37 (4) Financing receivable endorsed or discounted by the Company at the end of the period and not yet due at the balance sheet date Unit: RMB Yuan Item Amount derecognized at the end of the Amount not derecognized at the end ofperiod the period Bank acceptance notes 27636310398.27 134Beijing Shougang Co. Ltd. Annual Report 2025 Total 27636310398.27 (5) Other notes Based on the Company’s daily cash management needs a portion of its bank acceptance notes are discounted and endorsed; therefore bank acceptance notes are classified as financial assets at fair value through other comprehensive income. 5. Other receivables Unit: RMB Yuan Item Closing balance Opening balance Dividends receivable 4900000.00 Other receivables 8944968.27 4832231.47 Total 13844968.27 4832231.47 (1) Dividends receivable Classification of dividends receivable Unit: RMB Yuan Item (or investee) Closing balance Opening balance Beijing Shougang Resource Recycling Technology Co. Ltd. 4500000.00 Mintian Steel Co. Ltd. 400000.00 Total 4900000.00 (2) Other receivables 1) Other receivables by nature of payment Unit: RMB Yuan Nature Closing book balance Opening book balance Petty cash 11900.00 180478.25 Deposits 7943893.00 3321184.36 Due from other companies 4470235.02 4574629.37 Court debit 2145252.31 2182757.60 Total 14571280.33 10259049.58 2) Disclosed by the aging Unit: RMB Yuan Aging Closing book balance Opening book balance Within 1 year (including 1 year) 8120842.78 4527859.10 1-2 years 806054.98 121885.57 2-3 years 169808.95 44000.00 Over 3 years 5474573.62 5565304.91 3-4 years 538750.00 4-5 years 525000.00 6395.00 Over 5 years 4949573.62 5020159.91 Total 14571280.33 10259049.58 3) Classified by bad debt provision method □Applicable □Non-applicable Unit: RMB Yuan Closing balance Opening balance Category Book balance Bad debt provision Book Book balance Bad debt provision Book Amount Proportion Amount Accrual value ratio Amount Proporti Accrual value on Amount ratio Assessed bad debt provisio 488706 33.54% 488706 100.00% 495765 495765n 5.18 5.18 1.47 48.32% 1.47 100.00% individu ally 135Beijing Shougang Co. Ltd. Annual Report 2025 Incl uding: Assessed bad debt provisio 968421 66.46% 739246. 7.63% 894496 530139 51.68% 469166. 8.85% 483223n in 5.15 88 8.27 8.11 64 1.47 portfolio s Incl uding: Total 145712 56263180.33 2.06 38.61% 89449610259054268152.90%4832238.2749.588.111.47 Assessed bad debt provision individually: Assessed bad debt provision individually Unit: RMB Yuan Opening balance Closing balance Name Book balance Bad debt Book balance Bad debt Accrual ratio Reason for badprovision provision debts Assessed bad debt provision 4957651.47 4957651.47 4887065.18 4887065.18 100.00% Long aging individually Total 4957651.47 4957651.47 4887065.18 4887065.18 Assessed bad debt provision in portfolios: Assessed bad debt provision in portfolios Unit: RMB Yuan Closing balance Name Book balance Bad debt provision Accrual ratio Assessed bad debt provision in portfolios 9684215.15 739246.88 7.63% Total 9684215.15 739246.88 Provision for bad debts made on the basis of a general model of expected credit losses: Unit: RMB Yuan Phase I Phase II Phase III Expected credit loss Bad debt provision Expected credit loss Expected credit loss Total within 12 months over the lifetime (no over the lifetime credit impairment) (credit impairmentoccurred) Balance as at 1 January 2025165947.13303219.514957651.475426818.11 Balance as at 1 January 2025 in the current period Accrual in the current period 240095.01 29985.23 270080.24 Current period reversal 70586.29 70586.29 Balance as at 31 December 2025 406042.14 333204.74 4887065.18 5626312.06 Changes in the carrying amount of the provision for losses that are material during the period □ Applicable √ Non-applicable 4) Provision recovery or reversal of bad debt provision during the period Provision for bad debts in the current period: Unit: RMB Yuan Amount of change during the period Category Openingbalance Accrual Recovered or Charged off or Closing balance reversed written off Others Assessed bad debt provision 4957651.47 0.00 70586.29 4887065.18 individually Assessed bad 469166.64 270080.24 0.00 739246.88 136Beijing Shougang Co. Ltd. Annual Report 2025 debt provision in portfolios Total 5426818.11 270080.24 70586.29 0.00 0.00 5626312.06 5) The top five other receivables classified by debtors are as follows: Unit: RMB Yuan Percentage of Company name Nature Closing balance Aging total other Closing balance of receivable (%) bad debt provision Counterparty 1 Security fund 4000600.00 Within 1 year 27.47% 200048.00 Counterparty 2 Court debit 2145252.31 Over 5 years 14.72% 2145252.31 Counterparty 3 Security fund 784000.00 Within 1 year 5.38% 39200.00 Counterparty 4 Security fund 770000.00 Within 1 year 5.28% 38500.00 Counterparty 5 Due from othercompanies 683907.90 Over 5 years 4.69% 273563.16 Total 8383760.21 57.54% 2696563.47 6. Prepayments (1) Disclosed by the aging of prepayments Unit: RMB Yuan Closing balance Opening balance Aging Amount Proportion Amount Proportion Within 1 year 2132619259.80 99.95% 2075005597.97 99.98% 1-2 years 567762.37 0.03% 61598.04 0.01% 2-3 years 5598.03 0.01% Over 3 years 78882.60 0.01% 87647.33 0.01% Total 2133271502.80 2075154843.34 (2) Prepayments of the top five closing balances grouped by prepaid objects Company name Closing balance (RMB Yuan) Percentage of total prepayments (%) Supplier 1 1689288857.76 79.19 Supplier 2 128218314.45 6.01 Supplier 3 85338118.44 4.00 Supplier 4 25159654.75 1.18 Supplier 5 17353131.21 0.81 Total 1945358076.61 91.19 7. Inventories Whether the Company is subject to disclosure requirements for the real estate industry No (1) Classification of inventories Unit: RMB Yuan Closing balance Opening balance Provision for Provision for decline in value decline in value of inventories of inventories Item Book balance or provision for Book value Book balance or provision forimpairment of impairment of Book value contract contract performance performance costs costs Raw materials 2033958105. 40129561.49 1993828544. 2471671701. 38062352.25 2433609348.49 00 17 92 Goods in stock 4687409647. 115320888.21 4572088759. 5090053932. 96193269.59 4993860662. 137Beijing Shougang Co. Ltd. Annual Report 2025 98775495 Low value consumables 736355771.44 736355771.44 673864597.53 673864597.53 Self-made semi-finished 3147466313. 120227699.50 3027238613. 3419535323. 113045841.09 3306489482.products 49 99 72 63 Total 10605189838 275678149.20 10329511689 11655125554 247301462.93 11407824092.40 .20 .96 .03 (2) Provision for decline in value of inventories or provision for impairment of contract performance costs Unit: RMB Yuan Increase Decrease Item Openingbalance Accrual Others Reversal or Closing balance charged off Others Raw materials 38062352.25 19028640.26 16961431.02 40129561.49 Goods in stock 96193269.59 217204678.41 198077059.79 115320888.21 Self-made semi-finished 113045841.09 336184366.03 329002507.62 120227699.50 products Total 247301462.93 572417684.70 544040998.43 275678149.20 8. Other current assets Unit: RMB Yuan Item Closing balance Opening balance Input value added tax to be certified 803576675.18 606315007.09 Prepaid income tax 40871007.90 7909849.60 Input value added tax to be deducted 6872348.54 4621878.50 VAT credit left for deduction 972584.68 Carbon credits assets 579647.20 579647.20 Prepayment of other taxes 16552.13 Total 851899678.82 620415519.20 9. Other equity instrument investments Unit: RMB Yuan Reasons Gains Losses Gains Losses for recognized recognized accumulate accumulate designation in other in other d in other d in other Dividend as at fair Item Closing Opening income balance balance comprehen comprehen comprehen comprehen sive sive recognized value sive sive through income for income for income at income at in the period other the period the period the end of the end of comprehenthe period the period sive income Beijing TIEKE Shougang 24715371 23882900 15411952 7087248. 23745251 3937360.RAILWAY- 2.00 8.00 .00 00 2.00 00 TECH Co.Ltd.Minmetals Special Steel 5000000. (Dongguan) 00 Co. Ltd.Qianan Shougang K.wah Constructio 22866375 n .00 MATERIALS Company 138Beijing Shougang Co. Ltd. Annual Report 2025 Limited Qian'an China Petroleum 18595145 23678335 5083189. 16795145 11700000 Kunlun Gas .48 .02 54 .48 .00 Co. Ltd.Mintian Steel Co. 5694163. 5897295. 203132.23 1525836. 1100000.Ltd. 33 56 67 00 Total 27144302 26840463 15411952 12373569 25424765 29392211 167373600.81 8.58 .00 .77 7.48 .67 .00 10. Long-term equity investments Unit: RMB Yuan Changes of increase or decrease in current period Openi Invest Adjust Openi ng ment Closing profit mentsng balanc Closing balancDeduc in Cash Investe balanc e of Additi tions or loss other Other divide Provisi balanc e of e e impair ons of of recogn equity nd or on for e impair (book ment invest ized compr chang profit impair Others (book mentinvest value) provisi ment ment under ehensi ve es declar ment value) provisi on equity ed on metho incom d e I. Joint ventures Tangsha n 43391 Guoxing 017.2 1175 1430. 44568 552.71 34 000.3Industry 7 2 Co. Ltd.Tangsha n Shouga ng 1088 20451 - 20000 1079 Jingtang 55043 901.4 9051 000.0 95083 Xishan 6.38 7 498.37 0 9.48 Coking Co. Ltd.Sub- 1131 21627 - 20000 1124 total 94145 454.1 9050 000.0 518833.65 8 068.03 0 9.80 II. Associates Tangsha n - Tangca 177095579. 47940 5255 13441 o 89 637.1 137.08 0079. Railway 9 78 Co. Ltd.Tangsha n Caofeidi an Dunshi 51066 - 43024 New 973.4 8042 065.7 Building 3 907.71 2 Materia ls Co.Ltd.Beijing 82766 35411 11817 Shouxin 953.0 529.0 8482.Jinyuan 8 2 10 139Beijing Shougang Co. Ltd. Annual Report 2025 Manage ment Consulti ng Center (Limited Partner ship) Qian'an Sinoche m Coal Chemic 44461 24082 46869 al 2861. 579.3 5440.Industri 27 3 60 al Co.Ltd.Beijing Shouga ng Resourc e 22980 1502 4950 19532 Recyclin 061.71 272.76 000.00 334.4 g 7 Technol ogy Co.Ltd.Qian'an Jinyu Shouga ng Environ 27368 35000 62695 mental 637.6 000.0 32727 Protecti 8 0 9.33 917.0 on Technol ogy Co.Ltd.Ningbo Shouga ng Zhejin 19009117.0 14572 27209 19182 Steel 8 2.34 .58 049.0 Materia 0 ls Co.Ltd.Guangz hou Jinghai 28940 - 29066 Shippin 149.4 3352120000 11.40 9036. 880.00 323.9 g Co. 3 Ltd.Shouga ng (Qingda 59276 1321 1242 59355 o) Steel 315.67 288.70 367.03 237.3 Industry 4 Co. Ltd.Tianjin Wuchan Shouga 16375 - 15190 ng Steel 690.6 1216 31843715.7 Processi 3 818.86.985 ng and 140Beijing Shougang Co. Ltd. Annual Report 2025 Distribu tion Co. Ltd.Hebei Jingji Industri 9279 2500 61255 - al 630.01 000.00 8.40 7392 Trading 188.41 Co. Ltd.Sub- 93877 350001969. 000.0 2500 6538 5305 6392 -96933 total 86 0 000.00 077.52 153.76 367.03 73920645. 188.4170 207035000 Total 71342 000.0 2500 28165-26392-2093 000.00531.73744367.07392849483.5100914.273188.415.50 The recoverable amount is determined as the net of fair value less costs of disposal □ Applicable √ Non-applicable The recoverable amount is determined as the present value of the expected future cash flows □ Applicable √ Non-applicable 11. Other non-current financial assets Unit: RMB Yuan Item Closing balance Opening balance Financial assets measured at fair value through profit and loss 25944976.84 70218671.35 Total 25944976.84 70218671.35 Other notes: Item Closing balance Opening balance Beijing Shouxin Jin'an Equity Investment Partnership (Limited Partnership) 25944976.84 70218671.35 Total 25944976.84 70218671.35 12. Fixed assets Unit: RMB Yuan Item Closing balance Opening balance Fixed assets 82509872123.34 87165864980.07 Fixed assets to be disposed Total 82509872123.34 87165864980.07 (1) Details of fixed assets Unit: RMB Yuan Plant and Machinery Electronic Industrial MetallurgicItem buildings and Vehiclesequipment equipment furnace al Others Total equipment I. Original book value: 1. Opening 39982690 55996399 3976534 12419979 1462795 58451852 1221814 17351206 balance 166.28 646.22 820.76 556.60 874.24 788.26 697.69 7550.05 2. Increase 68084998 1107941 39504035 95272186 32316006 2987478 81820481 61734767.41 175.68 .66 5.28 0.78 857.92 .60 464.33 (1)58984473768777841291580643431043619796752980270.25716905 Purchase .09 .26 .75 .76 .22 04 3.12 (2) Transferre d from 59787524 1031063 24995886 77214962 31897622 44435738 36978296 3226396 constructio 0.19 391.42 .73 6.53 1.83 5.86 .44 049.00 n in progress (3) 141Beijing Shougang Co. Ltd. Annual Report 2025 Increased by business combinatio ns (4) Other 23990274 1592342. 13714119 4183838. 2481141 41861915 2689911 increases .13 18 4.99 95 796.84 .12 362.21 3.11231801599396218676323666628365008410708149602980841.3116723 Decrease 124.59 357.19 1.98 .71 .12 .10 42 299.11 (1) Disposal or 20236207 56272848 37738887 19198827 56512259 2980841. 37506574 retirement 6.66 .42 .26 .88 .35 42 0.99 (2) Other 92081804 1543123 18093743 17467455 65008410 14302700 2741657 decreases 7.93 508.77 4.72 .83 .12 .75 558.12 4. Closing 39540360 55504944 3797362 13336035 1720947 61368516 1300654 17656882 balance 029.10 464.71 534.44 138.17 524.90 686.08 337.87 0715.27 II.Accumulat ed depreciatio n 1. Opening 14793266 27422516 2842893 8445543 80628885 31363571 67212294 86346202 balance 892.92 623.23 074.56 155.61 2.39 022.62 8.65 569.98 2. Increase 1177426 2760657 15066156 72615176 98911378 3535028 83181662 8532018151.68 406.26 5.14 3.61 .16 692.62 .62 620.09 (1) Accrual 1177426 2760623 15061107 68818452 98911378 2978184 71068527 7925010151.68 930.34 5.05 3.89 .16 604.98 .57 191.67 (2) Other 33475.92 50490.09 37967239 55684408 12113135 60700842increases .72 7.64 .05 8.42 3. Decrease 14561414 49747080 99809033 15557350 27930714 30676622 2213932. 819272590.67 3.32 .90 .87 .60 .30 48 8.14 (1) Disposal or 82065156 43227223 35165091 15505887 30676622 2213932. 20885391 retirement .38 .60 .67 .02 .30 48 3.45 (2) Other 63548984 45424357 64643942 decreases .29 9.72 .23 51463.85 2793071461041868.604.69 4. Closing 15825078 29685703 2893745 9156137 87726951 34867923 75309067 94058948 balance 903.93 226.17 605.80 568.35 5.95 092.94 8.79 591.93 III.Impairmen t provision 1. Opening balance 2. Increase (1) Accrual 3. Decrease (1) Disposal or retirement 4. Closing balance IV. Book value 1. Closing 23715281 25819241 90361692 4179897 84367800 26500593 54756365 82509872 book value 125.17 238.54 8.64 569.82 8.95 593.14 9.08 123.34 2. Opening 25189423 28573883 1133641 3974436 65650702 27088281 54969174 87165864 book value 273.36 022.99 746.20 400.99 1.85 765.64 9.04 980.07 (2) Fixed assets leased through operating leases Unit: RMB Yuan Item Closing book value Plant and buildings 89119361.72 Machinery and equipment 10021051.82 142Beijing Shougang Co. Ltd. Annual Report 2025 Total 99140413.54 13. Construction in progress Unit: RMB Yuan Item Closing balance Opening balance Construction in progress 2703454625.85 3259681378.70 Construction materials 2833395.58 3506195.72 Total 2706288021.43 3263187574.42 (1) Details of construction in progress Unit: RMB Yuan Closing balance Opening balance Item Book balance Impairmentprovision Book value Book balance Impairment provision Book value Jingtang technical renovation 746656678.61 746656678.61 453776558.65 453776558.65 project Project for smelting high- quality steel with near-zero 535658095.73 535658095.73 6069713.78 6069713.78 carbon emissions Qiangang technical 818565136.51 818565136.51 1051445371. 1051445371.renovation 52 52 project Zhixin Co. high- end heat treatment 52731478.70 52731478.70 1110711589. 1110711589.engineering 62 62 project Zhixin Co.oriented phase 40129758.09 40129758.09 II project Other projects 549843236.30 549843236.30 597548387.04 597548387.04 Total 2703454625. 2703454625. 3259681378. 3259681378.85 85 70 70 (2) Changes in significant construction in progress projects during the period Unit: RMB Yuan Inclu Prop ortio Accu ding: Capit n of mula Capit alizat Trans ted alize ion Budg Open ferre Othe Closi proje Proje amou d rate Item et ing Incre d to r ng ct ct nt of amou of amou balan ase fixed decre balan inves progr inter nt of inter Capital source nt ce asset ases ce tmen inter est in s t to ess est capit est in currethe budg alizat curre nt nt perio et ion perio d d Proje ct for smelt 9873 6069 5295 5356 1667 1667 ing 8000 713. 8838 5809 59.00 65% 102. 102. 1.92 Others high- 0.00 78 1.95 5.73 % 32 32 % qualit y 143Beijing Shougang Co. Ltd. Annual Report 2025 steel with near- zero carbo n emiss ions Zhixi n Co.high- end heat 1948 1110 2640 1084treat 560 711 5273 ment 000.0 589.6 6076 38696.47100.0.44187.3 1478.70%0% Others engin 0 2 6 eerin g proje ct 29351116 9407815559 1084588316671667 Total 000.0 303.4 9445 386 8.39187.3 8957102.102. 0064.433232 (3) Details of impairment tests on construction in progress □ Applicable √ Non-applicable (4) Construction materials Unit: RMB Yuan Closing balance Opening balance Item Book balance Impairmentprovision Book value Book balance Impairment provision Book value Specialized materials 1383079.43 1383079.43 1731123.81 1731123.81 Specific equipment 1450316.15 1450316.15 1775071.91 1775071.91 Total 2833395.58 2833395.58 3506195.72 3506195.72 14. Right-of-use assets (1) Details of right-of-use assets Unit: RMB Yuan Item Plant and buildings Total I. Original book value 1. Opening balance 557345560.05 557345560.05 2. Increase 33283777.77 33283777.77 (1) Lease-in 33283777.77 33283777.77 3. Decrease 53637924.66 53637924.66 (1) Other decreases 53637924.66 53637924.66 4. Closing balance 536991413.16 536991413.16 II. Accumulated depreciation 1. Opening balance 89102094.75 89102094.75 2. Increase 31938359.37 31938359.37 (1) Accrual 31938359.37 31938359.37 3. Decrease 42352109.97 42352109.97 (1) Disposal (2) Other decreases 42352109.97 42352109.97 4. Closing balance 78688344.15 78688344.15 III. Impairment provision 144Beijing Shougang Co. Ltd. Annual Report 2025 1. Opening balance 2. Increase (1) Accrual 3. Decrease (1) Disposal 4. Closing balance IV. Book value 1. Closing book value 458303069.01 458303069.01 2. Opening book value 468243465.30 468243465.30 (2) Details of impairment tests on right-of-use assets □ Applicable √ Non-applicable/None 15. Intangible assets (1) Details of intangible assets Unit: RMB Yuan Item Land use rights Patent Non-patentedtechnologies Software Data resources Total I. Original book value 1. Opening 6863057581. balance 53 554389876.29 7417447457. 82 2. Increase 24981766.98 1127452.83 26109219.81 (1) Purchase 9155283.01 9155283.01 (2) In-house R&D 1127452.83 1127452.83 (3) Increased by business combinations (4) Transferred from construction in 15826483.97 15826483.97 progress 3. Decrease (1) Disposal 4. Closing 6863057581. 579371643.27 1127452.83 7443556677.balance 53 63 II. Accumulated amortization 1. Opening 1270435477. balance 02 288447329.32 1558882806. 34 2. Increase 146570395.81 49027531.24 18790.88 195616717.93 (1) Accrual 146570395.81 49027531.24 18790.88 195616717.93 3. Decrease (1) Disposal 4. Closing 1417005872. balance 83 337474860.56 18790.88 1754499524. 27 III. Impairment provision 1. Opening balance 2. Increase (1) Accrual 145Beijing Shougang Co. Ltd. Annual Report 2025 3. Decrease (1) Disposal 4. Closing balance IV. Book value 1. Closing book 5446051708. 241896782.71 1108661.95 5689057153.value 70 36 2. Opening 5592622104. 5858564651. book value 51 265942546.97 48 Intangible assets formed through in-house research and development at the end of the period as a percentage of the intangible asset balance. (2) Data resources recognized as intangible assets √ Applicable □ Non-applicable Unit: RMB Yuan Purchased data Self-developed Data sources Item resources data resources acquired in otherIntangible Intangible assets ways recognized as Total assets intangible assets I. Original book value 1. Opening balance 2. Increase 1127452.83 Including: Purchase In-house R&D 1127452.83 Other increases 3. Decrease Including: Disposal Expired and derecognized Other decreases 4. Closing balance 1127452.83 II. Accumulated amortization 1. Opening balance 2. Increase 18790.88 3. Decrease Including: Disposal Expired and derecognized Other decreases 4. Closing balance 18790.88 III. Impairment provision 1. Opening balance 2. Increase 3. Decrease 4. Closing balance IV. Book value 1. Closing book value 1108661.95 1108661.95 2. Opening book value (3) Details of impairment tests on intangible assets □ Applicable √ Non-applicable 16. Long-term prepaid expenses Unit: RMB Yuan Item Opening balance Increase Amortization Other decreases Closing balance Renovation costs 4131889.55 865950.91 1555191.49 3442648.97 Safety rectification works 288925.82 1554857.84 338926.81 1504856.85 Total 4420815.37 2420808.75 1894118.30 4947505.82 146Beijing Shougang Co. Ltd. Annual Report 2025 17. Deferred tax assets and deferred tax liabilities (1) Deferred tax assets without offsetting Unit: RMB Yuan Closing balance Opening balance Item Deductible temporary Deferred tax assets Deductible temporarydifference difference Deferred tax assets Provision for asset impairment 196812237.05 29607904.48 167371828.86 25105774.33 Unrealized profits in internal trading 91598577.79 14759322.75 111125777.51 17753675.63 Deductible losses 937706681.04 140656002.16 1014554778.40 152183216.76 Provision for credit impairment 81432613.74 15561806.91 78483594.18 15990780.43 Lease liabilities 487002726.32 82760777.35 485776051.76 83472167.40 Withdrawal amount of payroll payable 13988298.73 2119012.49 12238113.93 1850717.73 Deferred income 547243856.84 82468692.28 479149696.83 72295391.44 Profit on commissioning of construction in 256731215.00 38509682.25 275069158.93 41260373.84 progress Amortization of assets difference 23726768.14 3559015.22 25688666.73 3853300.01 Others 14230514.51 2382235.70 40352.92 10088.23 Total 2650473489.16 412384451.59 2649498020.05 413775485.80 (2) Deferred tax liabilities without offsetting Unit: RMB Yuan Closing balance Opening balance Item Taxable temporary difference Deferred tax liabilities Taxable temporary difference Deferred tax liabilities Changes in fair value of investments in other 224855445.81 33728316.90 221817063.73 33272559.56 equity instruments Equipment additional deduction 1602044150.50 240306622.58 1719396622.68 257909493.40 Right-of-use assets 458191103.78 77684122.69 468124246.16 80208578.99 Cost of commissioning of construction in 740491023.40 111073653.51 829771538.60 124465730.79 progress Total 3025581723.49 462792715.68 3239109471.17 495856362.74 (3) Details of unrecognized deferred tax assets Unit: RMB Yuan Item Closing balance Opening balance Deductible temporary difference 35278363.89 93634520.31 Deductible losses 1783725596.07 1796930066.26 Total 1819003959.96 1890564586.57 (4) Deductible losses on unrecognized deferred tax assets will expire in the following years: Unit: RMB Yuan Year Closing balance Opening balance Note 202517290511.03 202613437096.0413437096.04 20271749623032.871749623032.87 20285793002.755793002.75 202910786423.5710786423.57 20354086040.84 Total 1783725596.07 1796930066.26 147Beijing Shougang Co. Ltd. Annual Report 2025 18. Restricted assets Unit: RMB Yuan End-of-period Beginning of the period Item Book Book value Type of Restriction Book Type of Restrictionbalance restriction reason balance Book value restriction reason Cash at All kinds of All kinds of bank and 45515135 45515135 Freeze deposits 79898774 79898774 deposits on hand .17 .17 frozen .97 .97 Freeze fixed funds etc. deposits Total 45515135 45515135 79898774 79898774.17 .17 .97 .97 19. Short-term loans Classification of short-term loans Unit: RMB Yuan Item Closing balance Opening balance Guaranteed loans 3892749388.88 Credit loans 21445498282.76 18358535402.86 Total 21445498282.76 22251284791.74 20. Notes payable Unit: RMB Yuan Type Closing balance Opening balance Commercial acceptance notes 3580000000.00 3740000000.00 Bank acceptance notes 107000000.00 94000000.00 Total 3687000000.00 3834000000.00 21. Accounts payable (1) Presentation of accounts payable Unit: RMB Yuan Item Closing balance Opening balance Payables for goods 17109639771.17 17261277860.42 Payment for construction work 2106659559.94 2787905091.71 Total 19216299331.11 20049182952.13 (2) Significant accounts payable with an aging of over 1 year or overdue Unit: RMB Yuan Item Closing balance Reasons for non-reimbursement or non-carry-forward Supplier 1 161473381.14 In the execution Supplier 2 98324317.59 In the execution Supplier 3 52972522.80 In the execution Supplier 4 45083085.03 In the execution Supplier 5 30233252.24 In the execution Total 388086558.80 (3) Whether there are any overdue payments owed to small and medium-sized enterprises Whether being a large-scale enterprise √ YES □ NO Whether there are any overdue payments owed to small and medium-sized enterprises □ YES √ NO 22. Other payables Unit: RMB Yuan Item Closing balance Opening balance Other payables 276148030.11 413434600.33 Total 276148030.11 413434600.33 148Beijing Shougang Co. Ltd. Annual Report 2025 Presentation of other payables by nature of amount Unit: RMB Yuan Item Closing balance Opening balance Deposits 7033291.23 5493190.63 Security fund 38240187.75 38487480.30 Due from Shougang Group 20399126.61 63771002.77 Restricted stock repurchase obligations 65694761.24 Due from other companies 210475424.52 239988165.39 Total 276148030.11 413434600.33 23. Contract liabilities Unit: RMB Yuan Item Closing balance Opening balance Advance from product sales 4529764861.53 5101055378.93 Total 4529764861.53 5101055378.93 24. Employee benefits payable (1) Presentation of employee benefits payable Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance I. Short-term employee benefits 683310563.49 4226799669.96 4150843108.51 759267124.94 II. Post-employment benefits (defined 44383829.70 612232532.43 611979487.19 44636874.94 contribution plans) III. Termination benefits 132324941.14 132324941.14 IV. Other benefits due within one year 5890000.00 5890000.00 Total 733584393.19 4971357143.53 4895147536.84 809793999.88 (2) Presentation of short-term employee benefits Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance 1. Salaries bonuses allowances and 155990819.89 3167648094.72 3137840362.92 185798551.69 subsidies 2. Welfare 303287045.76 303287045.76 3. Social insurance 228348618.71 303988968.12 284014736.76 248322850.07 Including: Medical insurance premiums 227259872.15 275464791.73 255439607.13 247285056.75 Work-related injury insurance 1088746.56 28524176.39 28575129.63 1037793.32 4. Housing fund 60513.00 316208079.99 316226819.99 41773.00 5. Labor union fee and employee education 298909511.89 110190808.33 83996370.04 325103950.18 fee Other short-term employee benefits 1100.00 25476673.04 25477773.04 Total 683310563.49 4226799669.96 4150843108.51 759267124.94 (3) Presentation of defined contribution plans Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance 1. Pension insurance 19418286.92 432983475.34 432969505.87 19432256.39 2. Unemployment insurance 12085826.40 15878522.58 16001280.36 11963068.62 3. Enterprise pension 12876784.20 163350507.68 162988659.96 13238631.92 149Beijing Shougang Co. Ltd. Annual Report 2025 Mandatory Provident Fund(MPF) 2932.18 20026.83 20041.00 2918.01 Total 44383829.70 612232532.43 611979487.19 44636874.94 Termination benefits Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Compensation for employee resettlement 132324941.14 132324941.14 Total 132324941.14 132324941.14 25. Taxes payable Unit: RMB Yuan Item Closing balance Opening balance Value-added tax 159130372.37 135610486.47 Income tax 53283327.16 62633479.01 Individual income tax 4671625.46 6426994.43 City construction and maintenance tax 2828822.47 1490313.96 Education surcharge 1496633.39 700363.01 Local education surcharge 668840.21 398565.10 Property tax 1403771.95 1355503.63 Land use tax 428536.01 440536.03 Stamp duty 29197503.59 29128373.36 Resource tax 6361753.00 3644879.00 Environmental protection tax 16522106.08 23640223.10 Others 23168.76 22165.48 Total 276016460.45 265491882.58 26. Current portion of non-current liabilities Unit: RMB Yuan Item Closing balance Opening balance Long-term loans due within one year 2856717233.44 2659863250.12 Bonds payable due within one year 4800000.00 Lease liabilities due within one year 23213515.70 20709352.32 Total 2884730749.14 2680572602.44 27. Other current liabilities Unit: RMB Yuan Item Closing balance Opening balance Short-term bonds payable 501643698.63 705150163.98 Tax to be exported 573712792.39 873806844.20 Undue backed notes 2425229703.24 3779376527.18 Shougang Jing Notes 700096356.68 789651680.65 Total 4200682550.94 6147985216.01 Increase or decrease in short-term bonds payable: Unit: RMB Yuan Amorti Mat Interes zation Bond Nominal Cou Issu urity Issued t Repaid Brea Issue Opening during accrue of in the Closing ched name value pon e ofrate date bon amount balance current d per premiu current balance or d period nomina m and discou period notl value nt Beijing 21 Shouga 500000 1.69 Oct 150 5000000 500000 16436 501643 ng 000.00 % ober days 00.00 000.00 98.63 698.63 No Compa 202 150Beijing Shougang Co. Ltd. Annual Report 2025 ny 5 Limite d 2025 First Scienc e and Techno logy Innova tion Bond Beijing Shouga ng Compa ny Limite 22 d 2024 700000 2.04 Aug 210 7000000 705150 30657 708215 Third 000.00 % ust202 days 00.00 163.98 26.43 890.41 No Super Short- 4 Term Financi ng Note Total 1200000 705150 500000 47094 708215 501643000.00 163.98 000.00 25.06 890.41 698.63 28. Long-term loans Classification of long-term loans Unit: RMB Yuan Item Closing balance Opening balance Guaranteed loans 6004858333.33 8497451736.11 Credit loans 4818328900.11 6026481514.01 Less: Long-term loans due within one year -2856717233.44 -2659863250.12 Total 7966470000.00 11864070000.00 29. Bonds payable (1) Bonds payable Unit: RMB Yuan Item Closing balance Opening balance Bonds payable 500000000.00 Total 500000000.00 (2) Increase or decrease in bonds payable (excluding other financial instruments such as preferred shares and perpetual bonds classified as financial liabilities) Unit: RMB Yuan Interes Amorti Openin Issued t zationNomin Maturi Issue accrue of RepaidBond Coupo Issue g during in the Closing Breach name al ty of amoun d per premiu balanc ed orvalue n rate date bond t balanc current nomin m and currente period e notal discou period value nt 30 25Sho 50000 June2025 50000 50000 50000uqianG 0000. 1.92% and 2 5 0000. 0000. 4800 K02 00 00 00 000.00 0000. No July 00 2025 151Beijing Shougang Co. Ltd. Annual Report 2025 500005000050000 Total —— 0000. 0000. 4800 0000000.00 0000.—— 00 30. Lease liabilities Unit: RMB Yuan Item Closing balance Opening balance Lease payment amount 708251388.52 725384558.67 Less: Unrecognized financing costs -221130199.96 -239484366.70 Reclassified to non-current liabilities due within one year -23213515.70 -20709352.32 Total 463907672.86 465190839.65 31. Long-term payables Unit: RMB Yuan Item Closing balance Opening balance Special payables 2100000.00 2100000.00 Total 2100000.00 2100000.00 Special payables Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Reasons forformation R&D funding 2100000.00 2100000.00 Total 2100000.00 2100000.00 32. Long-term employee benefits payables Unit: RMB Yuan Item Closing balance Opening balance II. Termination benefits 15005094.29 17183594.32 III. Other long-term benefits 59501576.95 61426762.09 Less: Long-term employee benefits payables due within one year -5890000.00 -5890000.00 Total 68616671.24 72720356.41 33. Provisions Unit: RMB Yuan Item Closing balance Opening balance Reasons for formation Pending litigation 6626572.00 1000000.00 Total 6626572.00 1000000.00 34. Deferred income Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Reasons forformation Government grant 563629799.28 153658932.00 91731515.65 625557215.63 Litigation Total 563629799.28 153658932.00 91731515.65 625557215.63 -- 35. Other non-current liabilities Unit: RMB Yuan Item Closing balance Opening balance Shougang Group advance payment for construction 2200552060.52 2364112304.97 Total 2200552060.52 2364112304.97 36. Share capital Unit: RMB Yuan Changes in current (+/-) Opening Shares Closing balance Shares issued Bonus issue transferred Others Sub-total balance from 152Beijing Shougang Co. Ltd. Annual Report 2025 reserves Total amount 777398102 - - of shares 0.00 19013650.0 19013650.0 775496737 000.00 Due to the failure of the performance evaluation indicators for the 2024 fiscal year to meet the Company level of performance evaluation conditions for the first period of lifting restrictions as stipulated in the Incentive Plan changes in some incentive objects due to organizational or personal reasons that do not meet the incentive conditions the Company repurchased and cancelled a total of 19013650 shares of restricted stocks that have been granted but have not yet been released and decreased treasury shares of RMB 65694761.24 in 2025. 37. Capital reserve Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Share premium 29632870264.14 184329611.39 29448540652.75 Other capital reserve 773848589.07 3744535.61 770104053.46 Total 30406718853.21 188074147.00 30218644706.21 Other notes including increases or decreases during the period and explanations of the reasons for the changes: * The change in share premium refers to the repurchase and cancellation of restricted stocks of RMB 46681111.24 granted in 2021 by the Company and the decrease of share premium by RMB 137648500.15 due to business combinations involving entities under common control.* Other changes in capital reserves refer to changes in equity of joint ventures and associates recognized by the Company based on shareholding ratios. 38. Treasury shares Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Restricted stock incentive plan 65694761.24 116640372.07 65694761.24 116640372.07 Total 65694761.24 116640372.07 65694761.24 116640372.07 Other notes including increases or decreases during the period and explanations of the reasons for the changes: * For the decrease of treasury shares by 65694761.24 during the current period see “Note 36. Share Capital” for details.* In 2025 the Company repurchased 26682716 shares through a dedicated securities account for share repurchases via centralised competitive bidding for the purpose of implementing an equity incentive plan. The total amount paid was RMB 16640372.07 (excluding transaction fees). 39. Other comprehensive income Unit: RMB Yuan Amount incurred in current period Less: Less: Transferre Transferre d from d from other otherIncurred comprehen Attributabl Attributabl Item Opening before comprehen sive Less: e to the e to Closing balance income tax sive balance for the income in income in Income tax parent minority prior prior expense company shareholdeperiod periods to periods to after tax rs after tax profit or retained loss during earnings the period during theperiod I. Other comprehensi 18854450 3038382.ve income 4.02 23 455757.34 2582624.19112712 898.91 which 153Beijing Shougang Co. Ltd. Annual Report 2025 cannot be reclassified into profits or losses Changes in fair value of investments 18854450 3038382.in other 4.02 23 455757.34 2582624.19112712 898.91 equity instruments II. Other comprehensi ve income to be 8135.97 - - - reclassified 316970.88 316970.88 308834.91 into profits or losses Translation difference of foreign - - - currency 8135.97 316970.88 316970.88 308834.91 financial statements Total other comprehensi 18855263 2721411.9.99 35 455757.34 2265654.19081829 ve income 01 4.00 40. Special reserve Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Safety fund 45140519.27 152654856.91 141089232.28 56706143.90 Total 45140519.27 152654856.91 141089232.28 56706143.90 41. Surplus reserve Unit: RMB Yuan Item Opening balance Increase Decrease Closing balance Statutory surplus reserve 1961316319.60 17569727.48 1978886047.08 Total 1961316319.60 17569727.48 1978886047.08 42. Undistributed profits Unit: RMB Yuan Item Current period Prior period Undistributed profits at previous year before adjustment 9447971388.81 9224145934.95 Adjustment to the total balance of undistributed profits at the beginning of the period (increase + 550046.82 decrease -) Undistributed profits at the beginning of the period after adjustment 9447971388.81 9224695981.77 Add: Current period net profit attributable to owners of the parent company 995635969.34 479418078.55 Less: Transfer to statutory surplus reserve 17658833.28 17075873.77 Common stock dividends payable 173027556.61 239066797.74 Other decreases 5610565.95 Undistributed profit at the end of the period 10247310402.31 9447971388.81 The adjustment to the total balance of undistributed profits of RMB 550046.82 at the beginning of the year represents the impact of retrospective adjustment resulting from a business combination involving entities under common control. Other decreases in undistributed profits for the current year amounted to RMB 5610565.95 of which RMB 12410337.30 was 154Beijing Shougang Co. Ltd. Annual Report 2025 attributable to the business combination under common control and RMB -6799771.35 was attributable to dividends previously distributed to equity incentive participants. 43. Operating revenue and cost of sales Unit: RMB Yuan Amount incurred in current period Amount incurred in prior period Item Revenue Cost of sales Revenue Cost of sales Main business 99850831084.05 94813774812.10 105024513695.40 100879037047.09 Other businesses 3067586488.86 2939332405.27 3437479690.89 3158068573.22 Total 102918417572.91 97753107217.37 108461993386.29 104037105620.31 Revenue and cost of sales by product type Amount incurred in current year Amount incurred in prior year Item Revenue Cost of sales Revenue Cost of sales Main business Industrial pure iron 435717597.41 416946095.88 329725948.36 321610684.42 Hot-rolled steel 40724797478.10 38858463234.24 43490893729.26 42525424736.87 Cold-rolled steel 57607711298.23 54526271485.91 59429232318.97 56695132627.18 Other steels 1082604710.31 1012093996.07 1774661698.81 1336868998.62 Sub-total 99850831084.05 94813774812.10 105024513695.40 100879037047.09 Other businesses Power 1466538002.69 1577998119.12 1258601392.50 1323153183.39 Solid waste 885521007.43 782541506.77 1570988209.62 1426495085.34 Others 715527478.74 578792779.38 607890088.77 408420304.49 Sub-total 3067586488.86 2939332405.27 3437479690.89 3158068573.22 Total 102918417572.91 97753107217.37 108461993386.29 104037105620.31 Revenue and cost of sales by timing of goods transfer Item Amount incurred in current year Amount incurred in prior year Revenue from main business 99850831084.05 105024513695.40 Including: Recognised at a certain point in time 99850831084.05 105024513695.40 Recognised during a certain period of time Revenue from other business 3067586488.86 3437479690.89 Total 102918417572.91 108461993386.29 (Continued) Item Amount incurred in current year Amount incurred in prior year Main business costs 94813774812.10 100879037047.09 Including: Recognised at a certain point in time 94813774812.10 100879037047.09 Recognised during a certain period of time Other business costs 2939332405.27 3158068573.22 Total 97753107217.37 104037105620.31 Revenue from trial sales Amount incurred in current year Amount incurred in prior year Item Revenue Cost of sales Revenue Cost of sales Pilot sale of fixed assets 419353740.71 378381897.07 44. Taxes and surcharges Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period 155Beijing Shougang Co. Ltd. Annual Report 2025 City construction and maintenance tax 102090390.76 39405066.46 Education surcharge 45364938.41 17072762.45 Resource tax 33260137.40 37622775.40 Property tax 220169839.93 207050249.96 Land use tax 227606305.79 227635902.40 Vehicle and vessel use tax 289581.17 295909.51 Stamp duty 125032739.42 129973085.00 Environmental protection tax 89735804.28 95499714.51 Local education surcharge 28411999.70 11202249.37 Others 235768.48 174662.41 Total 872197505.34 765932377.47 45. General and administrative expenses Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Staff costs 700182486.90 626546387.78 Depreciation and amortization 309494948.55 319274486.45 Other regular expenses 311055250.25 338637792.34 Total 1320732685.70 1284458666.57 46. Selling expenses Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Staff costs 155220812.12 165408100.38 Depreciation and amortization 275869.52 641550.53 Other regular expenses 90310262.63 68697497.71 Total 245806944.27 234747148.62 47. R&D expenses Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Staff costs 487929430.35 478207259.12 Other regular expenses 68900799.20 54491496.36 Total 556830229.55 532698755.48 48. Financial expenses Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Interest expenses 811686090.52 1176723369.76 Interest income -109174846.62 -88226397.09 Discount on notes acceptance 42988897.85 32358001.80 Exchange losses and gains -6558331.16 -20979873.31 Bank charges and others -1184811.74 1202827.31 Total 737756998.85 1101077928.47 49. Other income Unit: RMB Yuan Source of other income Amount incurred in current period Amount incurred in prior period Asset-related government grants 91684240.05 40296257.21 Revenue-related government grants 18274893.24 150201417.92 Value added tax deduction 372993600.18 881359599.43 Refund of personal income tax commission 1165625.55 829144.87 Others 9000.00 2250.00 Total 484127359.02 1072688669.43 50. Gains from changes in fair value Unit: RMB Yuan Sources of gains from changes in fair Amount incurred in current period Amount incurred in prior period 156Beijing Shougang Co. Ltd. Annual Report 2025 value Other non-current financial assets 4693755.42 -4790547.26 Total 4693755.42 -4790547.26 51. Investment gain Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Long-term equity investment income measured under equity method 28165531.70 -317194130.31 Gain on disposal of long-term equity investments -1408811.08 Dividend from other equity instruments investments 16737360.00 7928839.58 Dividend from other non-current financial assets 651975.26 Others 384337.24 2537679.85 Total 44530393.12 -306727610.88 52. Credit impairment losses Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Provision for bad debts of notes receivable 1472567.34 -306499.62 Provision for bad debts of accounts receivable 3379307.13 -19652624.31 Provision for bad debts of other receivables -199493.95 1271493.89 Provision for bad debts of financing receivable 299766.90 -276043.29 Total 4952147.42 -18963673.33 53. Impairment losses on assets Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period I. Loss on decline in value of inventories and impairment loss of contract -572417684.70 -575389035.63 performance costs Total -572417684.70 -575389035.63 54. Gains on disposal of assets Unit: RMB Yuan Sources of proceeds from the disposal of assets Amount incurred in current period Amount incurred in prior period Gains and losses on disposal of fixed assets -132346.76 97353.54 Gains and losses on disposal of right-of- use assets 1132507.50 694020.11 Total 1000160.74 791373.65 55. Non-operating income Unit: RMB Yuan Item Amount incurred in current Amount incurred in prior Recognised as non-recurring period period gains or losses in currentperiod Gains on retirement of non- current assets 7654.92 179820.54 7654.92 Income from penalty 1333077.55 2591052.13 1333077.55 Revenue from carbon credits 2020788.68 140795603.84 2020788.68 Others 7506253.13 4312844.62 7506253.13 Total 10867774.28 147879321.13 10867774.28 157Beijing Shougang Co. Ltd. Annual Report 2025 56. Non-operating expenses Unit: RMB Yuan Amount incurred in current Amount incurred in prior Recognised as non-recurringItem period period gains or losses in currentperiod Losses on retirement of non- current assets 101942151.87 51551673.87 101942151.87 Provisions 6626572.00 1000000.00 6626572.00 Fines and late fees 9828302.20 7939187.72 9828302.20 Liquidated damages 786071.60 2263140.95 786071.60 Carbon Emission Allowance Trading 4878686.28 Others 352216.65 66909.94 352216.65 Total 119535314.32 67699598.76 119535314.32 57. Income tax expenses (1) Income tax expense statement Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Current income tax expenses 247471444.05 170879010.11 Deferred income tax expenses -32128370.18 -20595114.22 Total 215343073.87 150283895.89 (2) Process of adjusting accounting profit and income tax expenses Unit: RMB Yuan Item Amount incurred in current period Total profits 1290204582.81 Income tax expense at the statutory/applicable tax rate 193530687.43 Effect of different tax rates applicable to subsidiaries 7333564.35 Effect of adjustments to income taxes of prior periods 13549791.12 Effect of non-taxable income -2608400.29 Effect of non-deductible costs expenses and losses 22669702.55 Effect of using deductible losses not recognized as deferred tax assets in prior periods -3330321.39 Effect of deductible temporary differences or deductible losses not recognized as deferred tax assets in the current period 612906.13 Gains and losses on joint ventures and associates accounted for under the equity method of accounting -4224829.76 Effect of tax rate changes on opening deferred income tax balances -253009.62 Tax implications of the markup deduction for research and development expenses -8932103.09 Others -3004913.56 Income tax expense 215343073.87 58. Other comprehensive income See “Note VII.39. Other comprehensive income” in this section for details. 59. Items in statement of cash flows (1) Cash related to operating activities Other cash received related to operating activities Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Receipt of government subsidies 169458535.50 232218716.55 Receipt of deposits 59816988.62 107780468.05 Receipt of other non-operating income 5385348.23 146160258.38 Receipt of due from other companies 249502019.65 133847913.67 Restricted cash at bank and on hand 54100000.00 20000000.00 Interest income 102117247.87 88226397.09 Total 640380139.87 728233753.74 158Beijing Shougang Co. Ltd. Annual Report 2025 Other cash paid related to operating activities Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Expenditures of a cost nature 513437533.01 699004543.02 Non-operating expenses 10689095.44 14838714.77 Payment of deposits 66992404.49 18952471.75 Restricted cash at bank and on hand 8530291.56 Handling fee expenses 1215105.73 1202827.31 Total 600864430.23 733998556.85 (2) Cash related to financing activities Other cash paid for financing activities Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Paying back the borrowings from Shougang Group 164000000.00 765796082.92 Lease payments 24626993.86 24683792.05 Payment for equity incentive repurchasement 176274578.38 64932121.43 Others 2703574.01 Total 364901572.24 858115570.41 Changes in liabilities arising from financing activities □Applicable □Non-applicable Unit: RMB Yuan Increase Decrease Opening Item Non-cash Non-cash Closing balance balance Cash changes Cash changes changes changes Short-term 22251284791 23332000000 479485346.61 24617271855 21445498282borrowings .74 .00 .58 .76 Long-term 14523933250 4818159458. 10823187233 borrowings .12 811230000.00 306183442.04 72 .44 Super & Short- Term Commercial 705150163.98 500000000.00 4709425.06 501643698.63 Paper (SCP) 708215890.41 Lease liabilities 485900191.97 25847990.45 24626993.86 487121188.56 Bonds payable 500000000.00 4800000.00 504800000.00 Total 37966268397 25143230000 30168274198 33762250403.81 .00 821026204.16 .57 .39 60. Supplements to statement of cash flows (1) Supplementary information Unit: RMB Yuan Supplementary information Current period amount Prior period amount 1. Reconciliation of net profit to cash flows from operating activities Net profit 1074861508.94 603477891.83 Add: Provision for asset impairment 567465537.28 594352708.96 Depreciation of fixed assets depletion of oil and gas assets depreciation of productive biological assets 7925010191.67 7821689103.24 Depreciation of right-of-use assets 31938359.37 35495158.68 Amortization of intangible assets 195616717.93 191799941.71 Amortization of long-term deferred expenses 1894118.30 685795.53 Losses on disposal of fixed assets intangible assets and other long- term assets (Gains as in “-”) -1000160.74 -791373.65 Losses on written-off fixed assets (Gains as in “-”) 101934496.95 51371853.33 Losses on fair value changes (Gain as in “-”) -4693755.42 4790547.26 159Beijing Shougang Co. Ltd. Annual Report 2025 Financial expenses (Income as in “-”) 844616657.21 1188101498.25 Investment losses (Income as in “-”) -44530393.12 306727610.88 Decrease in deferred tax assets (Increase as in “-”) 1391034.21 27300814.00 Increase in deferred tax liabilities (Decrease as in “-”) -33519404.40 -47896570.98 Decrease in inventories (Increase as in “-”) 505894718.13 796855067.92 Decrease in receivables from operating activities (Increase as in “-”) -539471667.94 -1157042303.45 Increase in payables from operating activities (Decrease as in “-”) -2536655014.44 -4168333504.22 Others 45924105.80 93637129.30 Net cash flows from operating activities 8136677049.73 6342221368.59 2. Significant non-cash payments for investing and financing activities Conversion of debt into capital Convertible bonds due within one year Finance leased fixed assets Right-of-use assets newly added during the period 33283777.77 45307.77 3. Net changes in cash and cash equivalents: Closing balance of cash 10790377373.28 8746738696.99 Less: Opening balance of cash 8746738696.99 8915530075.33 Add: Closing balance of cash equivalents Less: Opening balance of cash equivalents Net increase in cash and cash equivalents 2043638676.29 -168791378.34 (2) Components of cash and cash equivalents Unit: RMB Yuan Item Closing balance Opening balance I. Cash 10790377373.28 8746738696.99 Including: Cash on hand 43303.90 50977.80 Balances in banks without restriction 10706974428.71 8746687706.45 Other monetary funds without restriction 83359640.67 12.74 III. Closing balance of cash and cash equivalents 10790377373.28 8746738696.99 (3) Monetary funds not belonging to cash and cash equivalents Unit: RMB Yuan Reasons for monetary funds Item Current period amount Prior period amount not belong to cash and cash equivalents Other monetary assets 45515135.17 78435686.58 Security fund Accrued interest 6568328.40 1463088.39 Accruing interest based onactual interest rate Total 52083463.57 79898774.97 61. Notes to Statement of Changes in Shareholders' Equity Indicate the name of the “Other” item and the amount of adjustment to the closing balance of the prior year: Regarding the item “6. Others” in the Statement of Changes in Equity the capital reserve decreased by RMB 137648121.49 the surplus reserve decreased by RMB 89105.80 primarily due to the business combination with Hebei Shougang Jingtang Machinery Co. Ltd. under common control during the period; and undistributed profits decreased by RMB 5610565.95 of which RMB 12410337.30 was attributable to the business combination under common control and RMB -6799771.35 was attributable to dividends previously distributed to equity incentive participants. 62. Foreign currency monetary items (1) Foreign currency monetary items Unit: RMB Yuan Item Closing balance for foreign Exchange rate Closing balance converted tocurrency RMB Cash at bank and on hand Including: USD 36393454.10 7.0288 255802310.18 160Beijing Shougang Co. Ltd. Annual Report 2025 EUR 844896.56 8.2355 6958145.62 HKD 1669896.50 0.9032 1508250.52 Accounts receivable Including: USD 2278394.30 7.0288 16014377.86 EUR HKD Long-term borrowings Including: USD EUR HKD Accounts payable Including: USD 1058828.21 7.0288 7442291.72 EUR HKD (2) Description of the overseas operating entities including in the case of a significant overseas operating entity a disclosure of the principal place of business outside the country the local currency of account and the basis of selection and the reasons for any change in the local currency of account.□Applicable □Non-applicable Subsidiary of the Company: Zhixin Electromagnetic (Hong Kong) Trading Co. Ltd. is a wholly-owned subsidiary of Shougang Zhixin Electromagnetic Materials (Qian'an) Co. Ltd. a subsidiary held by the Company established in Hong Kong. In 2025 the main business of this subsidiary was overseas sales of metallic soft magnetic materials and the sales settlement method was mainly in U.S. dollars. Based on the Company's actual operation and future development plan the bookkeeping local currency in 2025 was U.S. dollars. 63. Lease (1) The Company as a lessee Item Amount incurred in Amount incurred incurrent year prior year Interest expenses on lease liabilities 18141757.96 19970899.60 Short-term lease expenses under simplified treatment included in current profit or loss 12827773.62 6630979.13 Lease expenses for low-value assets (other than short-term leases) recognized in profit or loss using the simplified approach 6902.66 Variable lease payments not included in the measurement of the lease liabilities Income from sublease of right-of-use assets 5843597.46 Total cash outflows related to leases 38635766.53 41551227.16 (2) The Company as a lessor Operating leases with the Company as a lessor Including: Income related to variable Item Amount incurred in current period lease payments not included in lease receipts lease revenue 48731016.96 Total 48731016.96 VIII.R&D expenses Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Staff costs 487929430.35 478207259.12 Other regular expenses 70028252.03 54491496.36 Total 557957682.38 532698755.48 Including: Expensed amount 556830229.55 532698755.48 Capitalized R&D expenditures 1127452.83 161Beijing Shougang Co. Ltd. Annual Report 2025 IX. Changes in the scope of consolidation 1. Business combinations involving entities under common control (1) Business combinations involving entities under common control occurred during the period Unit: RMB Yuan Revenue of Net profit of the acquiree the acquiree Interest Basis for percentage constituting a Basis for from the from the Revenue of Net profit of Name of the determining beginning of beginning of the acquiree the acquiree acquiree obtained in business Combinati combination on date the the current the current for the for thethe business under common combination combination combination comparative comparativecombination control date period to the period to the period periodcombination combination date date Both parties Obtained were under actual the control of control on Hebei Shougang the date of Shougang Group Co. Ltd. 25 industrial Jingtang 100.00% before and December and 898185414. 635582699.Machinery after the 2025 commercial 93 8027162.83088325029.51 Co. Ltd. combination change and such registration control is not and the date temporary. of equitydelivery.During the current period Jingtang Co. acquired 100% equity of Hebei Shougang Jingtang Machinery Co. Ltd.through a business combination under common control. In accordance with the Accounting Standards for Business Enterprises and relevant provisions the Company and Jingtang Co. have retrospectively adjusted the opening data of the consolidated financial statements and relevant data for the comparative period. (2) Cost of combination Unit: RMB Yuan Cost of combination Hebei Shougang Jingtang Machinery Co. Ltd.--Cash 150366403.60 --Book value of non-cash assets --Book value of debts issued or assumed --Nominal value of equity securities issued --Contingent consideration (3) Book values of assets and liabilities of the acquiree on the combination date Hebei Shougang Jingtang Machinery Co. Ltd.Item Combination date End of previous year Assets: Cash at bank and on hand 69327577.54 49363845.95 Receivables 101484835.80 90228620.55 Summary of other current asset items 15449037.88 36910278.01 Summary of non-current asset items 71113671.49 64924972.12 Liabilities: Accounts payable 90609890.46 65723717.27 Employee benefits payable 2133284.69 1944360.82 Summary of other current liability items 17641244.31 33014558.47 Summary of non-current liability items Net assets 146990703.25 140745080.07 Less: Non-controlling interests Net assets acquired 146990703.25 140745080.07 162Beijing Shougang Co. Ltd. Annual Report 2025 X. Interests in other entities 1. Interests in subsidiaries (1) Composition of the Company Unit: RMB Yuan Name of Registered Main place of Place of Business Shareholding ratio (%) Acquisition subsidiary capital operation registration nature Direct Indirect method Business Shougang combinations Jingtang 3582167629 Tangshan PRC Tangshan PRC Production 70.18% 29.82% involvingUnited Iron & 4.00 and sales entities under Steel Co. Ltd. common control Beijing Shougang Cold 2600000000. Production Establishment Rolling Co. 00 Beijing PRC Beijing PRC and sales 70.28% or investment Ltd. etc.Qian'an Business Shougang combinations Metallurgical 151900000.00 Qian'an PRC Qian'an PRC Consulting 100.00% involving Technology service entities under Co. Ltd. commoncontrol Shougang Zhixin Electromagnet 3000000000. Establishment ic Materials 00 Qian'an PRC Qian'an PRC Production and sales 66.23% or investment (Qian'an) Co. etc.Ltd.Beijing Business Shougang combinations Steel Trading 1136798235. Production involving Investment 00 Beijing PRC Beijing PRC and sales 100.00% entities under Management common Co. Ltd. control (2) Material non-wholly owned subsidiaries Unit: RMB Yuan Shareholding ratio of Profit or loss Dividends declared and Name of subsidiary non-controlling attributable to non- distributed to non- Balance of non- controlling interests at interests controlling interests in controlling interests inthe current period the current period the end of the period Beijing Shougang Cold Rolling Co. Ltd. 29.72% 3550593.89 -302942904.14 Shougang Zhixin Electromagnetic Materials (Qian'an) Co. 33.77% 62110161.59 79913787.54 4925102606.14 Ltd. (3) Major financial information of material non-wholly owned subsidiaries Unit: RMB Yuan Name Closing balance Opening balance of Non- Current Non- Total Non- Non- subsidi Current current Total liabilitie current liabilitie Current current Total Current Total assets assets liabilitie assets assets liabilitie current ary assets s s assets s liabilitie liabilitie s s s Beijing Shougan 11655 28462 40117 27907 22364 50272 14499 30491 44991 31344 23900 55245 g Cold 60065. 00563. 60629. 98154. 55650. 53805. 98245. 16907. 15152. 95872. 93197. 89070.Rolling 49 52 01 92 63 55 00 36 36 82 52 34 Co. Ltd.Shougan g Zhixin Electrom 64474 14403 20851 49450 13214 62664 61923 15524 21717 56930 13907 70838 agnetic 96421. 67812 17454 75687. 12885. 88572. 48706. 84234 19105 74749. 83109. 57858.Material 47 4.17 5.64 69 19 88 35 6.46 2.81 47 09 56 s 163Beijing Shougang Co. Ltd. Annual Report 2025 (Qian'an) Co. Ltd.Unit: RMB Yuan Amount incurred in current period Amount incurred in prior period Name of Cash flows Cash flows subsidiary Operating Total Total revenue Net profit comprehensi from Operating operating revenue Net profit comprehensi from ve income operatingactivities ve income activities Beijing Shougang 907013870 11946816.5 11946816.5 74036719.5 976826139 6188121.79 6188121.79 912441874.Cold Rolling 2.53 9 9 2 1.98 23 Co. Ltd.Shougang Zhixin Electromagne 155250927 183926564. 183447980. 181489510 143422709 333031890. 333044274. 620426601.tic Materials 48.00 58 71 5.17 42.98 51 26 19 (Qian'an) Co.Ltd. 2. Interests in joint ventures and associates (1) Significant joint ventures and associates Name of joint venture Main place of Place of Business Shareholding ratio (%) or associate operation registration nature Accounting methodDirect Indirect I. Joint ventures Tangshan Guoxing Tangshan PRC Tangshan PRC ManufacturinIndustry Co. Ltd. g 50.00% Equity method Tangshan Shougang Jingtang Xishan Coking Tangshan PRC Tangshan PRC Coking 50.00% Equity method Co. Ltd.II. Associates Tangshan Tangcao Transportatio Railway Co. Ltd. Tangshan PRC Tangshan PRC n 16.19% Equity method Tangshan Caofeidian Dunshi New Building Tangshan PRC Tangshan PRC Buildingmaterials 25.00% Equity methodMaterials Co. Ltd.Qian'an Sinochem Coal Chemical Industrial Co. Qian'an PRC Qian'an PRC Coking 49.82% Equity method Ltd.Beijing Shouxin Jinyuan Management Consulting Center Beijing PRC Beijing PRC Investment 20.00% Equity method (Limited Partnership) Beijing Shougang Resource Recycling Beijing PRC Beijing PRC Manufacturin 45.00% Equity method Technology Co. Ltd. g Ningbo Shougang Zhejin Steel Materials Ningbo PRC Ningbo PRC Manufacturing 40.00% Equity methodCo. Ltd.Guangzhou Jinghai Guangzhou Shipping Co. Ltd. PRC Guangzhou PRC Transportatio n 20.00% Equity method Shougang (Qingdao) Qingdao PRC Qingdao PRC ManufacturinSteel Industry Co. Ltd. g 35.00% Equity method Tianjin Wuchan Shougang Steel Manufacturin Processing and Tianjin PRC Tianjin PRC g 35.00% Equity method Distribution Co. Ltd.Qian'an Jinyu Shougang Environmental Protection Technology Qian'an PRC Qian'an PRC Building materials 35.00% Equity method Co. Ltd. (2) Major financial information of significant joint ventures Closing balance/2025 Opening balance/2024 Item Tangshan Guoxing Tangshan Shougang Tangshan Tangshan Shougang Industry Co. Ltd. Jingtang Xishan Guoxing Industry Jingtang Xishan CokingCoking Co. Ltd. Co. Ltd. Co. Ltd. 164Beijing Shougang Co. Ltd. Annual Report 2025 Current assets 133221267.13 2824226008.12 69987990.52 2589154143.35 Including: Cash and cash equivalents 5150631.43 246932991.57 6426493.84 19204043.19 Non-current assets 80261448.07 697628094.24 81435831.50 923965805.48 Total assets 213482715.20 3521854102.36 151423822.02 3513119948.83 Current liabilities 115735387.58 1300718012.28 56592687.16 1307120876.10 Non-current liabilities 8611326.96 61234411.12 8049100.30 28898200.00 Total liabilities 124346714.54 1361952423.40 64641787.46 1336019076.10 Total net assets 89136000.66 2159901678.96 86782034.56 2177100872.73 Including: Non-controlling interests Equity attributable to shareholders of the parent 89136000.66 2159901678.96 86782034.56 2177100872.73 company Net assets calculated by shareholding ratio 44568000.32 1079950839.48 43391017.27 1088550436.38 Adjustment --Goodwill --Unrealized profit of internal transaction --Others Book value of equity investments in joint ventures 44568000.32 1079950839.48 43391017.27 1088550436.38 Fair value of equity investments in joint ventures with quoted market prices Operating revenue 192008063.35 8317156143.06 142182164.30 11074278709.42 Financial expenses 43055.86 20655096.91 -6413.14 24000484.29 Income tax expense 1689511.92 9500817.47 1473020.35 13193720.07 Net profit 2346087.37 40903803.00 4419060.99 37305654.47 Net profit from discontinued operations Other comprehensive income Total comprehensive income 2346087.37 40903803.00 4419060.99 37305654.47 Dividends received from joint ventures 20000000.00 1500000.00 20000000.00 (3) Major financial information of significant associates Closing balance/2025 Opening balance/2024 Tangshan Tangshan Item Caofeidian Qian'an Tangshan Tangcao Dunshi New Sinochem Coal Tangshan Caofeidian Chemical Tangcao Dunshi New Qian'an Sinochem Railway Co. Ltd. Building Industrial Co. Railway Co. Building Coal Chemical Materials Co. Ltd. Ltd. Materials Co.Industrial Co. Ltd.Ltd. Ltd.Current assets 54216796.86 23445981.98 1275544120. 52440010.09 15 42846381.54 1570885238.75 165Beijing Shougang Co. Ltd. Annual Report 2025 Including: Cash and cash 46641489.equivalents 52511031.48 10319741.85 87579029.18 82 16951890.26 12534818.62 Non-current assets 7499449470.46 180770348.29 2258631301. 77260493 197536973.975 46.20 0 2389287838.85 Total assets 7553666267.32 204216330.27 3534175421. 77784893 240383355.484 56.35 4 3960173077.60 Current liabilities 3406479743.75 21380278.44 2487191731. 2946802253 29.28 22871084.46 3059030465.56 Non-current liabilities 3316982201.25 10739788.97 114621349.44 3737829314.29 13244377.28 17115900.12 Total liabilities 6723461945.00 32120067.41 2601813080. 6684631597 43.57 36115461.74 3076146365.68 Total net assets 830204322.32 172096262.86 932362340.87 10938578 204267893.712.78 0 884026711.92 Including: Non-controlling interests Equity attributable to shareholders of the parent 830204322.32 172096262.86 932362340.87 10938578 204267893.7 company 12.78 0 884026711.92 Net assets calculated by shareholding ratio 134410079.78 43024065.72 464548020.39 177095579.8951066973.43440465441.06 Adjustment --Goodwill 4147420.21 4147420.21 --Unrealized profit of internal transaction --Others Book value of equity investments in associates 134410079.78 43024065.72 468695440.60 177095579.8951066973.43444612861.27 Fair value of equity investments in associates with quoted market prices Operating revenue 253037458.80 188475006.17 5872535050. 164997004 241162895.957 .73 9 6924184652.71 Financial expenses 188538086.21 310639.96 51241734.07 211257810.68 55809.88 50637409.78 Income tax expense 60684.60 585492.48 38980.23 -1433111.60 - Net profit -296112644.77 -32171630.84 48335628.95 402240238 -24689411.40 -458433862.95.93 Net profit from discontinued operations Other comprehensive income - Total comprehensive income -296112644.77 -32171630.84 48335628.95 402240238 -24689411.40 -458433862.95.93 Dividends received from associates (Continued) Closing balance/2025 Opening balance/2024 Beijing Shouxin Beijing Jinyuan Qian'an Jinyu Shouxin Qian'an Jinyu Item Management Beijing Shougang Shougang Jinyuan Beijing Shougang Shougang Consulting Center Resource Recycling Environmental Management Resource Recycling Environmental (Limited Technology Co. Ltd. Protection Consulting Technology Co. Ltd. Protection Partnership) Technology Co. Center Technology Co.Ltd. (Limited Ltd.Partnership) 166Beijing Shougang Co. Ltd. Annual Report 2025 Current assets 765638588.04 87531763.81 58297533.38 2272966.16 74699002.05 23021292.55 Including: Cash and cash equivalents 431131799.63 35558274.87 28620558.90 1772966.16 37922666.16 3390262.50 Non-current assets 1354103.93 416840361.64 535864735.00 438504.67 231727402.31 Total assets 765638588.04 88885867.74 475137895.02 538137701.16 75137506.72 254748694.86 Current liabilities 180655101.64 45579668.63 73444203.57 8075000.00 24169691.51 40178753.87 Non-current liabilities 247562500.01 120366283.39 136373833.34 Total liabilities 180655101.64 45579668.63 321006703.58 128441283.39 24169691.51 176552587.21 Total net assets 584983486.40 43306199.11 154131191.44 409696417.77 50967815.21 78196107.65 Including: Non- controlling interests Equity attributable to shareholders of the 584983486.40 43306199.11 154131191.44 409696417.77 50967815.21 78196107.65parent company Net assets calculated by shareholding ratio 118178482.10 19487789.60 53945917.00 82766953.08 22935516.84 27368637.68 Adjustment --Goodwill 44544.87 44544.87 --Unrealized profit of internal transaction --Others Book value of equity investments in 118178482.10 19532334.47 62695917.01 82766953.08 22980061.71 27368637.68 associates Fair value of equity investments in associates with quoted market prices - Operating revenue 226516736.73 232427948.43 147004940.05 204154628.4 172336510.30 99197118.71 0 Financial expenses -3964.93 -488341.13 3295064.35 691.40 -525440.35 5051064.25 Income tax expense 1156939.65 1687365.47 2301714.80 - Net profit 175287068.63 3338383.90 935083.79 168724805.6 3449923.94 -16837916.88 3 Net profit from discontinued operations Other comprehensive income Total comprehensive - income 175287068.63 3338383.90 935083.79 168724805.6 3449923.94 -16837916.883 Dividends received from associates 450000.00 7789898.99 167Beijing Shougang Co. Ltd. Annual Report 2025 (4) Summary financial information for no significant joint ventures and associates Unit: RMB Yuan Closing balance/2025 Opening balance/2024 Joint ventures: Items calculated according to shareholding ratio Associates: Total book value of investment 122794326.02 132880902.81 Items calculated according to shareholding ratio --Net profit 585403.58 4531464.94 --Total comprehensive income 585403.58 4531464.94 3. Interests in unconsolidated structured entities Relevant notes on unconsolidated structured entities (1) Basic information of unconsolidated structured entities The unconsolidated structured entities are the Limited Partnerships initiated by the Company including Beijing Shouxin Jinyuan Management Consulting Center (Limited Partnership) (Hereinafter referred to as Shouxin Jinyuan Fund or the Partnership) and Beijing Shouxin Jin'an Equity Investment Partnership (Limited Partnership) (Hereinafter referred to as Shouxin Jin'an Fund or the Partnership). In accordance with the provisions of the limited partnership agreement the Company has no control over the Partnership.* The purpose of establishing the Shouxin Jinyuan Fund is to combine the relevant policies of Beijing on the development of high-end precision and advanced industry with the market-oriented operation of M&A investment actively responding to the strategic goal of Beijing to build a high-end precision and advanced industrial structure promoting the upgrading and development of Beijing's high-end precision and advanced industry contributing to the local economic development and industrial structure adjustment of Beijing and creating satisfactory return on investment for investors.The total subscribed capital of all partners to Shouxin Jinyuan Fund is no less than RMB 1 billion. The Fund partners are divided into general partners and limited partners. The contribution agreement is as follows: Beijing Shouyuan New Energy Investment Management Co. Ltd. the general partner contributes RMB 10 million; and among the limited partners the Company agrees to contribute RMB 200 million and the other limited partners agree to contribute RMB 790 million in total.As of 31 December 2025 Shouxin Jinyuan Fund has conducted investment activities and five external investment projects has been invested with the amount of RMB 829432100. A total of 3 projects have been exited and RMB 2567.0212 million has been recovered cumulatively including RMB 600 million of project investment principal and RMB 1967.0212 million of investment income. In addition reduced share proceeds of approximately RMB 245.7631 million from one project are held in a Hong Kong stock securities account and will be repatriated to the mainland upon completion of ODI procedures. No financing activity has been conducted by the Fund.* The purpose of establishing the Shouxin Jin'an Fund is to focus on investing in leading enterprises within the Shougang Group system thereby expanding and strengthening the Shougang Group's new material industry. Leveraging platforms such as Zhixin Electromagnetic Beiye Guigang and other advanced metal materials enterprises the fund will concentrate on advanced metal new material areas where the Shougang Group has competitive advantages including advanced electrical steel materials casting superalloys precision alloys and high-performance special steels.The total subscribed capital of all partners to Shouxin Jin'an Fund is no less than RMB 2070.5455 million.The Fund partners are divided into general partners and limited partners. The contribution agreement is as follows: Beijing Shouyuan Xinneng Investment Management Co. Ltd. the general partner contributes RMB 20.7055 million; and among the limited partners the Company agrees to contribute RMB 200 million and the other limited partners agree to contribute RMB B 1849.84 million in total.As of 31 December 2025 Shouxin Jin'an Fund has completed fund raising and registered with the Asset Management Association of China and three external investment projects have been invested with RMB 255 million. No financing activity has been conducted by the Fund. (2) Maximum loss exposure 168Beijing Shougang Co. Ltd. Annual Report 2025 As of 31 December 2025 the maximum loss exposure of the Company's interests in Shouxin Jinyuan Fund is RMB 45.8864 million and the maximum loss exposure of the Company's interests in Shouxin Jin'an Fund is RMB 24.6312 million. (3) The support provided to the unconsolidated structured entities As of 31 December 2025 the Company had no intention of providing financial or other support for Shouxin Jinyuan Fund and Shouxin Jin'an Fund. (4) Additional information disclosure of unconsolidated structured entities As of 31 December 2025 no additional information related to Shouxin Jinyuan Fund and Shouxin Jin'an Fund should be disclosed by the Company.XI. Government grants 1. Government grants based on the amount receivable at the end of the reporting period □ Applicable□ Non-applicable Reasons for not receiving the expected amount of government grants at the expected point in time □ Applicable□ Non-applicable 2. Liability items related to government grants □Applicable □Non-applicable Unit: RMB Yuan Amount of Amount Amount Accounting Opening new grants recognized as transferred to item balance during the non-operating other income Other changes Closing Related to income during during the balance assets/incomeperiod the period period Deferred 563629799.2 153658932.0 91731515.65 625557215.6 Related toincome 8 0 3 assets/income Total 563629799.2 153658932.08 0 91731515.65 625557215.6 3 3. Government grants recognized in current profit or loss □Applicable □Non-applicable Unit: RMB Yuan Accounting item Amount incurred in current period Amount incurred in prior period Government grants included in other income 18227617.64 150156988.17 Total 18227617.64 150156988.17 XII. Risks related to financial instruments 1. Various risks arising from financial instruments The major financial instruments of the Company include cash at bank and on hand notes receivable accounts receivable financing receivables other receivables other current assets other equity instrument investments other non-current financial assets notes payable accounts payable other payables short- term borrowings current portion of non-current liabilities long-term borrowings and bond payables lease liabilities and long-term payables. The details of financial instruments are disclosed in the respective notes.Risks related to these financial instruments and the risk management policies used by the Company to minimize the risks are disclosed as below. Management of the Company manages and monitors the risk exposures to ensure the risks are controlled in the limited range.Objectives and policies of risk management The objective of the Company in risk management is to obtain an appropriate equilibrium between risk and return and also focuses on minimizing potential adverse effects on the financial performance of the Company brought by the financial risk. Based on the objectives of risk management certain policies are established to recognize and analyze the risk. Also in order to monitor the risk position of the Company internal control procedures are designed according to an acceptable level of risk. Both the 169Beijing Shougang Co. Ltd. Annual Report 2025 policies and internal control procedures are reviewed and revised regularly to adapt the changes of the market and business activities of the Company.The primary risks caused by the financial instruments of the Company are credit risk and liquidity risk.Credit risk Credit risk refers to the risk that the counterparty to a financial instrument would fail to discharge its obligation under the terms of the financial instrument and cause a financial loss to the Company.The Company manages the credit risk on a portfolio basis. Credit risks are mainly caused by bank deposits notes receivable accounts receivable and other receivables.The Company's bank deposits are placed mainly with financial institutions with good reputations and high credit ratings. Therefore no significant credit risk associated with bank deposits is expected.In addition for notes receivable accounts receivable and other receivables the Company sets policies to control credit risk exposure. The Company evaluates credit qualifications and sets credit periods based on the customer's financial position credit records and other factors such as current market conditions. The credit records of the customers are regularly monitored by the Company. In respect of customers with poor credit records the Company will use written payment reminders or shorten or cancel credit periods to ensure the overall credit risk of the Company is limited to a controllable extent The highest credit risk exposure to the Company is limited to the book value of each financial instrument illustrated in the balance sheet. The Company has not provided any guarantee that might cause credit risk to the Company.Among the accounts receivable of the Company the accounts receivable of the top five customers accounted for 48.25% (2024: 49.38%); among the other receivables of the Company the other receivables of the top five customers accounted for 57.54% (2024: 46.48%).Liquidity risk Liquidity risk refers to the risk of the Company facing a shortage of funds when fulfilling obligations to settle with cash or other financial assets.In managing liquidity risk the Company maintains and monitors an adequate level of cash and cash equivalents as considered by the management to meet its operational needs and mitigate the impact of fluctuating cash flows. The management of the Company monitors the usage of bank borrowings and ensures compliance with the borrowing agreements. Meanwhile the primary financial institution commits to providing sufficient reserve funds to satisfy the short-term and long-term fund requirements of the Company.XIII.Disclosure of fair value 1. Closing fair value of assets and liabilities measured at fair value Unit: RMB Yuan Closing fair value Level 2 Item Level 1 fair value fair value Level 3 fair value measurement measure measurement Total ment Recurring fair value measurement Financing receivables 2127981225.71 2127981225.71 Other equity instruments investments 247153712.00 24289308.81 271443020.81 170Beijing Shougang Co. Ltd. Annual Report 2025 Other non-current financial assets 25944976.84 25944976.84 Total assets measured at fair value on a recurring basis 247153712.00 2178215511.36 2425369223.36 2. Basis for determining the market value of recurring and non-recurring Level 1 fair value measurement items The Company's Level 1 fair value measurement items consist of listed stocks purchased on the STAR Market of the Shanghai Stock Exchange. The fair value gains and losses are derived from the observed public market trading prices of these financial products. 3. Qualitative and quantitative information on the valuation techniques and significant parameters used for the recurring and non-recurring Level 2 fair value measurement items None 4. Qualitative and quantitative information on the valuation techniques and significant parameters used for the recurring and non-recurring Level 3 fair value measurement items Financial instruments included in Level 3 are bank acceptances receivable and equity in unlisted companies held under the management of the Company which are valued by the Company based on future cash inflows and other factors. Under limited circumstances if the recent information used to determine the fair value is insufficient or the possible estimates of the fair value are widely distributed and the cost represents the best estimate of the fair value within the range the cost could represent the appropriate estimate of the fair value within the distribution range.XIV.Related parties and related party transactions 1. Information about the parent company of the Company Parent company Place of Registered capital Ratio of votingregistration Business nature (RMB Yuan) Shareholding ratio rights Shougang Group Ferrous metal Co. Ltd. Beijing PRC smelting and 30337014977.83 57.01% 57.01%rolling industry Information about the parent company of the Company The ultimate controlling party of the Company is the State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality. 2. Information about the subsidiaries of the Company For details of the Company's subsidiaries please refer to "Note X. 1. Interests in subsidiaries" in this Section. 3. Information about joint ventures and associates of the Company For details of the Company's significant joint ventures or associates please refer to "Note X.2. Interests in joint ventures and associates" in this Section.Other joint ventures or associates that had related party transactions with the Company during the current period or had balances arising from related party transactions with the Company in prior periods were as follows Name of joint venture or associate Relationship with the Company Tangshan Shougang Jingtang Xishan Coking Co. Ltd. Joint ventures of the Company Tangshan Guoxing Industry Co. Ltd. Joint ventures of the Company Tangshan Tangcao Railway Co. Ltd. Associates of the Company Qian'an Sinochem Coal Chemical Industrial Co. Ltd. Associates of the Company Beijing Shougang Resource Recycling Technology Co. Ltd. Associates of the Company Guangzhou Jinghai Shipping Co. Ltd. Associates of the Company Tianjin Wuchan Shougang Steel Processing and Distribution Co. Ltd. Associates of the Company Ningbo Shougang Zhejin Steel Materials Co. Ltd. Associates of the Company Tangshan Caofeidian Dunshi New Building Materials Co. Ltd. Associates of the Company Shougang (Qingdao) Steel Industry Co. Ltd. Associates of the Company Qian'an Jinyu Shougang Environmental Protection Technology Associates of the Company 171Beijing Shougang Co. Ltd. Annual Report 2025 Co. Ltd. 4. Information about other related parties Names of other related parties Relationship with the Company Beijing Beiyi New Materials Co. Ltd. (Former Name: Beijing Beiye Functional Materials Co. Under the control of the same Ltd.) parent company Beijing Chengxin Project Supervision Co. Ltd. Under the control of the sameparent company Peking University Shougang Hospital Under the control of the sameparent company Beijing Huaxia Shouke Technology Co. Ltd. Under the control of the sameparent company Beijing Jin'anyuan Auto Transportation Co. Ltd. Under the control of the sameparent company Beijing Shouao Real Estate Co. Ltd. Under the control of the sameparent company Beijing Shoucheng Packaging Service Co. Ltd. Under the control of the sameparent company Beijing Shoufang Commercial Management Co. Ltd. Under the control of the sameparent company Beijing Shougang City Transportation Holdings Co. Ltd. Under the control of the sameparent company Beijing Shougang Real Estate Development Co. Ltd. Under the control of the sameparent company Beijing Shougang Futong Electromechanical Engineering Co. Ltd. (Former Name: Beijing Under the control of the same Shougang Futong Elevator Co. Ltd.) parent company Beijing Shougang International Engineering Technology Co. Ltd. Under the control of the sameparent company Beijing Shougang Huaxia Engineering Technology Co. Ltd. Under the control of the sameparent company Beijing Shougang Environmental Engineering Technology Co. Ltd. Under the control of the sameparent company Beijing Shougang Machinery & Electric Co. Ltd. Under the control of the sameparent company Beijing Shougang Gitane New Materials Co. Ltd. Under the control of the sameparent company Beijing Shougang Testing Technology Co. Ltd. Under the control of the sameparent company Beijing Shougang Construction Group Co. Ltd. Under the control of the sameparent company Beijing Shougang Construction Investment Co. Ltd. Under the control of the sameparent company Beijing Shougang Mining Construction Co. Ltd. Under the control of the sameparent company Beijing Shougang Lujiashan Limestone Mine Co. Ltd. Under the control of the sameparent company Beijing Shougang Gas Co. Ltd. Under the control of the sameparent company Beijing Shougang Industry Co. Ltd. Under the control of the sameparent company Beijing Shougang Ferroalloy Co. Ltd. Under the control of the sameparent company Beijing Shougang Property Management Co. Ltd. Under the control of the sameparent company Beijing Shougang Material Trade Co. Ltd. Under the control of the sameparent company Beijing Shougang 1919 Catering Management Co. Ltd. Under the control of the sameparent company Beijing Shougang Catering Co. Ltd. Under the control of the sameparent company Beijing Shougang Park Green Co. Ltd. Under the control of the sameparent company 172Beijing Shougang Co. Ltd. Annual Report 2025 Beijing Shougang Park Comprehensive Service Co. Ltd. Under the control of the sameparent company Beijing Shougang Yunxiang Industrial Technology Co. Ltd. Under the control of the sameparent company Beijing Shougang Automation Information Technology Co. Ltd. Under the control of the sameparent company Beijing Shoujia Steel Structure Co. Ltd. Under the control of the sameparent company Beijing Shoujian Hengji Construction Engineering Co. Ltd. Under the control of the sameparent company Beijing Shoujian Hengxin Labor Service Co. Ltd. Under the control of the sameparent company Beijing Shoujian Equipment Maintenance Co. Ltd. Under the control of the sameparent company Beijing Shouke Xingye Engineering Technology Co. Ltd. Under the control of the sameparent company Beijing Shouronghui Science and Technology Development Co. Ltd. Under the control of the sameparent company Beijing Shouye Instruments & Meters Co. Ltd. Under the control of the sameparent company Beijing Soly Technology Co. Ltd. Under the control of the sameparent company Beijing Aidi Geological Engineering Technology Co. Ltd. Under the control of the sameparent company Beijing Shougang Lanzatech Co. Ltd. Under the control of the sameparent company GOLD COSMOS Development Limited Under the control of the sameparent company Bohai International Conference Center Co. Ltd. Under the control of the sameparent company Dachang Shougang Machinery & Electric Co. Ltd. Under the control of the sameparent company Guizhou Bohong Industry Co. Ltd. Under the control of the sameparent company Guizhou Guigang Drilling Tool Manufacturing Co. Ltd. Under the control of the sameparent company Guizhou Guigang Equipment Engineering Co. Ltd. Under the control of the sameparent company Heping Shoushi International Business Exhibition Services (Beijing) Co. Ltd. (Former Name: Under the control of the same Beijing Shoushi Xinye Labor Service Co. Ltd.) parent company Hebei Shenzhou Yuanda Real Estate Development Co. Ltd. Under the control of the sameparent company Jilin Tonggang International Trade Co. Ltd. Under the control of the sameparent company Liaoning Shougang Iron Boron Co. Ltd. Under the control of the sameparent company Ningbo Metallurgical Survey and Design Research Co. Ltd. Under the control of the sameparent company Qian'an Golden Apple Kindergarten Under the control of the sameparent company Qian'an Shougang Qiangang Hotel Co. Ltd. Under the control of the sameparent company Qian'an Shougang Equipment Structure Co. Ltd. Under the control of the sameparent company Qian'an Shougang Xingkuang Industrial Co. Ltd. Under the control of the sameparent company Qian'an Shoushi Packaging Service Co. Ltd. Under the control of the sameparent company Qian'an Shouxin Automation Information Technology Co. Ltd. Under the control of the sameparent company Qinhuangdao Shougang Plate Co. Ltd. Under the control of the sameparent company 173Beijing Shougang Co. Ltd. Annual Report 2025 Qinhuangdao Shougang Machinery Co. Ltd. Under the control of the sameparent company Qinhuangdao Shougang Racing Valley Development Co. Ltd. Under the control of the sameparent company Qinhuangdao Shouqin Steel Machining & Delivery Co. Ltd. Under the control of the sameparent company Qinhuangdao Shouqin Metal Materials Co. Ltd. Under the control of the sameparent company Qingdao Free Trade Zone Shouyi Logistics Service Co. Ltd. Under the control of the sameparent company Shougang Fushan Resources Group Co. Ltd. Under the control of the sameparent company Shanxi Yicheng Shouwang Coal Industry Co. Ltd. Under the control of the sameparent company Shougang Institute of Technology Under the control of the sameparent company Shougang Guiyang SPECIAL Steel Co. Ltd. Under the control of the sameparent company Shougang International (Austria) Co. Ltd. Under the control of the sameparent company Shougang International (Germany) GmbH Under the control of the sameparent company Shougang Environmental Industry Co. Ltd. Under the control of the sameparent company Shougang Group Finance Co. Ltd. Under the control of the sameparent company Shougang Casey Steel Co. Ltd. Under the control of the sameparent company Shougang Luannan Macheng Mining Co. Ltd. Under the control of the sameparent company Shougang Gas Tangshan Co. Ltd. Under the control of the sameparent company Shougang Commercial Factoring Co. Ltd. Under the control of the sameparent company Shougang Shuicheng Iron & Steel (Group) Saide Construction Co. Ltd. Under the control of the sameparent company Shougang Shuicheng Iron & Steel (Group) Co. Ltd. Under the control of the sameparent company Shougang Yili Steel Co. Ltd. Under the control of the sameparent company Shougang Changzhi Steel & Iron Co. Ltd. Under the control of the sameparent company Shoushi Fengyang International Logistics Services (Tangshan Caofeidian) Co. Ltd. Under the control of the sameparent company Suzhou Jingshou Commercial Management Co. Ltd. Under the control of the sameparent company Tangshan Caofeidian Industrial District Shouhanxin Industrial Co. Ltd. Under the control of the sameparent company Tangshan Caofeidian Shoushi Industrial Co. Ltd. Under the control of the sameparent company Tangshan Caofeidian Industrial Zone Jingtang Industry Co. Ltd. Under the control of the sameparent company Tangshan Caofeidian District Bohai Kindergarten Under the control of the sameparent company Tangshan Shougang Malanzhuang Iron Ore Co. Ltd. Under the control of the sameparent company Tangshan Shouxin Automation Information Technology Co. Ltd. Under the control of the sameparent company Tianjin Shougang Electrical Equipment Co. Ltd. Under the control of the sameparent company Tonghua Iron and Steel Co. Ltd. Under the control of the sameparent company 174Beijing Shougang Co. Ltd. Annual Report 2025 China Shougang International Trade & Engineering Corporation Under the control of the sameparent company YASKAWA Shougang Robot Co. Ltd. Joint ventures or associates of theCompany's parent company Cockerill Engineering (Beijing) Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Relizhongda Heat Exchange Equipment Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shoubang New Materials Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shougang Resources Comprehensive Utilization Technology Development Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shoushe Metallurgical Technology Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shoutaizhongxin Science & Technology Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shoutegang Yuandong Magnesium Alloy Products Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shouyi Mining Hospital Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shouyu Industry and Trade Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Shouyun Logistics Co. Ltd. Joint ventures or associates of theCompany's parent company Beijing Xingyeda Machinery & Electric Equipment Manufacture Co. Ltd. Joint ventures or associates of theCompany's parent company Chaoyang Shougang Beifang Machinery Co. Ltd. Joint ventures or associates of theCompany's parent company Guizhou Liupanshui Shenghongda Mechanical Equipment Manufacturing Co. Ltd. Joint ventures or associates of theCompany's parent company Guizhou Shuigang Logistics Co. Ltd. Joint ventures or associates of theCompany's parent company Hebei Shoulang New Energy Technology Co. Ltd. Joint ventures or associates of theCompany's parent company Jingtang Port Shougang Terminal Co. Ltd. Joint ventures or associates of theCompany's parent company Jingxi Shoutang Supply Chain Management Co. Ltd. Joint ventures or associates of theCompany's parent company Longnan City Xiong Wei Wan Li New Material Co. Ltd. Joint ventures or associates of theCompany's parent company POSCO-TISCO (Jilin) Processing Center Co. Ltd. Joint ventures or associates of theCompany's parent company Qianan Shougang K.wah Construction MATERIALS Company Limited Joint ventures or associates of theCompany's parent company Qinhuangdao Shounai New Materials Co. Ltd Joint ventures or associates of theCompany's parent company Shoujia Huanke (Qian'an) Co. Ltd. Joint ventures or associates of theCompany's parent company Tangshan Caofeidian Ganglian Logistics Co. Ltd. Joint ventures or associates of theCompany's parent company Tangshan Caofeidian Shiye Port Co. Ltd. Joint ventures or associates of theCompany's parent company PetroChina Shougang (Beijing) Petroleumsales Co. Ltd. Joint ventures or associates of theCompany's parent company Hua Xia Bank Co.Ltd. Joint ventures or associates of theCompany's parent company Shougang Qianjin Machinery Factory Beijing Maintenance Branch Other related parties Shougang Technician College Other related parties 5. Information about related party transactions (1) Related transactions involving the purchase and sale of goods rendering and receipt of services Purchase of goods/receipt of services Unit: RMB Yuan 175Beijing Shougang Co. Ltd. Annual Report 2025 Related party Contents of related Amount incurred in Amount incurred in priortransactions current period period Shougang Group Co. Ltd. Purchase of goods 22515236811.75 24896083490.63 Shougang Group Co. Ltd. Receipt ofservices/labor 146094242.56 235815920.27 Shougang Group Co. Ltd. Fund usage charges 893554.71 28585314.85 Beijing Shougang Material Trade Co. Ltd. Purchase of goods 14219622889.24 13509033979.04 Beijing Shougang Material Trade Co. Ltd. Receipt ofservices/labor 627203.21 9056.60 Tangshan Shougang Jingtang Xishan Coking Co.Ltd. Purchase of goods 10974182282.17 14908232906.30 Tangshan Shougang Jingtang Xishan Coking Co. Receipt of Ltd. services/labor 118269295.69 113670781.81 Qian'an Sinochem Coal Chemical Industrial Co.Ltd. Purchase of goods 5303784004.75 6046732690.95 Shougang Luannan Macheng Mining Co. Ltd. Purchase of goods 2078104686.37 Shougang Luannan Macheng Mining Co. Ltd. Receipt ofservices/labor 2083538.37 Beijing Shougang Construction Group Co. Ltd. Receipt ofservices/labor 1163991896.15 1196100839.34 Beijing Shougang Construction Group Co. Ltd. Purchase of goods 102246849.88 62105774.36 Beijing Shougang Ferroalloy Co. Ltd. Purchase of goods 678834235.24 545483757.06 Beijing Shougang Lujiashan Limestone Mine Co.Ltd. Purchase of goods 522266847.78 529372599.18 Beijing Shougang Lujiashan Limestone Mine Co. Receipt of Ltd. services/labor 84023760.97 97625946.05 Qian'an Shoushi Packaging Service Co. Ltd. Receipt ofservices/labor 385372330.51 320781211.14 Qian'an Shoushi Packaging Service Co. Ltd. Purchase of goods 212458895.88 21999368.69 Beijing Shougang International Engineering Technology Co. Ltd. Purchase of goods 279383939.40 337106152.62 Beijing Shougang International Engineering Receipt of Technology Co. Ltd. services/labor 249287482.53 794043258.71 Beijing Shougang Automation Information Receipt of Technology Co. Ltd. services/labor 369634771.48 461544514.15 Beijing Shougang Automation Information Technology Co. Ltd. Purchase of goods 122089394.89 98632677.57 Tianjin Wuchan Shougang Steel Processing and Distribution Co. Ltd. Purchase of goods 452148841.50 477374931.41 Tianjin Wuchan Shougang Steel Processing and Receipt of Distribution Co. Ltd. services/labor 1033074.43 2598855.95 Tangshan Caofeidian Shiye Port Co. Ltd. Receipt ofservices/labor 399095566.00 484985567.40 Tangshan Caofeidian Shiye Port Co. Ltd. Purchase of goods 48414695.20 Beijing Shougang Machinery & Electric Co. Ltd. Receipt ofservices/labor 310573926.15 269273887.51 Beijing Shougang Machinery & Electric Co. Ltd. Purchase of goods 117833353.35 141253858.36 Tangshan Caofeidian Industrial District Receipt of Shouhanxin Industrial Co. Ltd. services/labor 424938667.00 275346945.52 Guangzhou Jinghai Shipping Co. Ltd. Receipt ofservices/labor 331496177.66 330236658.72 Shougang Group Finance Co. Ltd. Fund usage charges 238054014.59 297381188.15 Shougang Group Finance Co. Ltd. Receipt ofservices/labor 1622.64 Qian'an Shougang Equipment Structure Co. Ltd. Purchase of goods 116544913.60 184459011.39 Qian'an Shougang Equipment Structure Co. Ltd. Receipt ofservices/labor 104892648.87 101096902.84 Qingdao Free Trade Zone Shouyi Logistics Service Co. Ltd. Purchase of goods 220522106.47 Beijing Shougang Gas Co. Ltd. Purchase of goods 143714510.35 23395822.69 Beijing Shougang Gas Co. Ltd. Receipt of 60690481.27 159478005.70 176Beijing Shougang Co. Ltd. Annual Report 2025 Related party Contents of related Amount incurred in Amount incurred in priortransactions current period period services/labor Beijing Shougang Resource Recycling Technology Co. Ltd. Purchase of goods 47652686.91 12890003.57 Beijing Shougang Resource Recycling Technology Receipt of Co. Ltd. services/labor 167071493.16 148934358.01 Tangshan Caofeidian Ganglian Logistics Co. Ltd. Receipt ofservices/labor 202806747.20 275377372.23 Tangshan Guoxing Industry Co. Ltd. Receipt ofservices/labor 149414231.92 132795465.44 Tangshan Guoxing Industry Co. Ltd. Purchase of goods 3452702.35 Qian'an Shouxin Automation Information Receipt of Technology Co. Ltd. services/labor 135298030.82 133775034.42 Shougang Casey Steel Co. Ltd. Receipt ofservices/labor 132928866.83 101767584.73 China Shougang International Trade & Receipt of Engineering Corporation services/labor 132853643.38 122116942.95 China Shougang International Trade & Engineering Corporation Purchase of goods 89291552.06 Qinhuangdao Shounai New Materials Co. Ltd Purchase of goods 128796768.94 45871506.40 Qinhuangdao Shounai New Materials Co. Ltd Receipt ofservices/labor 1892842.00 2082113.00 Beijing Shoujian Equipment Maintenance Co. Receipt of Ltd. services/labor 117520301.40 124810305.88 Beijing Shoujian Equipment Maintenance Co.Ltd. Purchase of goods 8478389.28 5466485.86 Shanxi Yicheng Shouwang Coal Industry Co. Ltd. Purchase of goods 97533473.45 Shanxi Yicheng Shouwang Coal Industry Co. Ltd. Receipt ofservices/labor 20788929.57 Beijing Shoucheng Packaging Service Co. Ltd. Receipt ofservices/labor 106133583.67 116154652.19 Beijing Shoucheng Packaging Service Co. Ltd. Purchase of goods 1034311.01 Tangshan Caofeidian Shoushi Industrial Co. Ltd. Receipt ofservices/labor 79290741.78 82773664.41 Tangshan Caofeidian Shoushi Industrial Co. Ltd. Purchase of goods 1035438.01 2175919.00 Beijing Jin'anyuan Auto Transportation Co. Ltd. Receipt ofservices/labor 64419937.41 62077965.63 Beijing Shouye Instruments & Meters Co. Ltd. Purchase of goods 45903518.07 39916891.43 Beijing Shouye Instruments & Meters Co. Ltd. Receipt ofservices/labor 137200.00 Qian'an Shougang Xingkuang Industrial Co. Ltd. Purchase of goods 45498534.98 36294138.62 Qian'an Shougang Xingkuang Industrial Co. Ltd. Receipt ofservices/labor 187566.87 8959243.65 Beijing Relizhongda Heat Exchange Equipment Co. Ltd. Purchase of goods 29395621.69 14915492.01 Beijing Relizhongda Heat Exchange Equipment Receipt of Co. Ltd. services/labor 13650691.00 11669280.50 PetroChina Shougang (Beijing) Petroleumsales Co. Ltd. Purchase of goods 37677542.50 51288195.75 PetroChina Shougang (Beijing) Petroleumsales Receipt of Co. Ltd. services/labor 725400.00 785850.00 Beijing Shoujia Steel Structure Co. Ltd. Receipt ofservices/labor 28851769.80 29139720.00 Qian'an Jinyu Shougang Environmental Receipt of Protection Technology Co. Ltd. services/labor 25831684.92 33905912.72 Tangshan Shougang Malanzhuang Iron Ore Co.Ltd. Purchase of goods 22621488.43 151619434.00 Beijing Shougang Mining Construction Co. Ltd. Receipt ofservices/labor 20005530.17 48038198.98 Beijing Shougang Mining Construction Co. Ltd. Purchase of goods 568807.34 177Beijing Shougang Co. Ltd. Annual Report 2025 Related party Contents of related Amount incurred in Amount incurred in priortransactions current period period Beijing Shougang Resources Comprehensive Utilization Technology Development Co. Ltd. Purchase of goods 19063053.66 10507585.21 Beijing Shougang Resources Comprehensive Receipt of Utilization Technology Development Co. Ltd. services/labor 451009.10 Tianjin Shougang Electrical Equipment Co. Ltd. Purchase of goods 18682233.60 24808285.29 Qian'an Shougang Qiangang Hotel Co. Ltd. Receipt ofservices/labor 18769799.41 21622287.99 Qian'an Shougang Qiangang Hotel Co. Ltd. Purchase of goods 13072.57 Beijing Chengxin Project Supervision Co. Ltd. Receipt ofservices/labor 15582613.17 12572077.07 Tangshan Caofeidian Dunshi New Building Receipt of Materials Co. Ltd. services/labor 14745323.37 Beijing Shougang Park Green Co. Ltd. Receipt ofservices/labor 14148704.42 18592256.99 Beijing Shougang Catering Co. Ltd. Receipt ofservices/labor 13719541.77 13881457.17 Beijing Shoutaizhongxin Science & Technology Co. Ltd. Purchase of goods 9815314.66 979382.56 Beijing Huaxia Shouke Technology Co. Ltd. Purchase of goods 7257595.49 7782069.45 Beijing Huaxia Shouke Technology Co. Ltd. Receipt ofservices/labor 264150.94 7855417.00 Beijing Shouyu Industry and Trade Co. Ltd. Purchase of goods 6957722.16 8096226.37 Beijing Shouyu Industry and Trade Co. Ltd. Receipt ofservices/labor 34484.89 584600.13 Qinhuangdao Shouqin Metal Materials Co. Ltd. Purchase of goods 6377158.17 271096.45 Qinhuangdao Shouqin Metal Materials Co. Ltd. Receipt ofservices/labor 206150.00 Liaoning Shougang Iron Boron Co. Ltd. Purchase of goods 6031233.38 Shoushi Fengyang International Logistics Receipt of Services (Tangshan Caofeidian) Co. Ltd. services/labor 5066994.77 Hebei Shoulang New Energy Technology Co. Ltd. Purchase of goods 5036726.68 5802617.07 Beijing Shougang Testing Technology Co. Ltd. Receipt ofservices/labor 3957617.92 4348267.92 Beijing Shouao Real Estate Co. Ltd. Receipt ofservices/labor 3441240.78 89599.06 Shougang Institute of Technology Receipt ofservices/labor 2232867.37 2164803.04 Shougang (Qingdao) Steel Industry Co. Ltd. Purchase of goods 1362173.52 10928506.40 Shougang (Qingdao) Steel Industry Co. Ltd. Receipt ofservices/labor 645130.67 125891.54 Beijing Shougang Futong Electromechanical Engineering Co. Ltd. (Former Name: Beijing Purchase of goods 699300.00 168285.90 Shougang Futong Elevator Co. Ltd.) Beijing Shougang Futong Electromechanical Engineering Co. Ltd. (Former Name: Beijing Receipt ofservices/labor 1151950.00 1200150.00Shougang Futong Elevator Co. Ltd.) Beijing Shouyi Mining Hospital Co. Ltd. Receipt ofservices/labor 2060614.27 145714.50 Beijing Shougang Property Management Co. Receipt of Ltd. services/labor 1524894.74 2898650.40 Beijing Shougang Yunxiang Industrial Technology Co. Ltd. Purchase of goods 731290.00 481668.00 Beijing Shougang Yunxiang Industrial Technology Receipt of Co. Ltd. services/labor 484000.00 238000.00 Beijing Shougang 1919 Catering Management Receipt of Co. Ltd. services/labor 1179398.13 369132.70 Qinhuangdao Shouqin Steel Machining & Delivery Co. Ltd. Purchase of goods 166248.00 63492.70 Qinhuangdao Shouqin Steel Machining & Receipt of 866400.00 178Beijing Shougang Co. Ltd. Annual Report 2025 Related party Contents of related Amount incurred in Amount incurred in priortransactions current period period Delivery Co. Ltd. services/labor Beijing Shoufang Commercial Management Co. Receipt of Ltd. services/labor 976853.18 224351.10 Qian'an Golden Apple Kindergarten Receipt ofservices/labor 923400.00 1220180.00 Beijing Shoujian Hengji Construction Engineering Co. Ltd. Purchase of goods 897900.08 162468.15 Beijing Shougang Park Comprehensive Service Co. Ltd. Purchase of goods 22134.41 Beijing Shougang Park Comprehensive Service Receipt of Co. Ltd. services/labor 729420.92 1029402.23 Beijing Shoushe Metallurgical Technology Co. Receipt of Ltd. services/labor 639039.93 15096.79 Qinhuangdao Shougang Racing Valley Receipt of Development Co. Ltd. services/labor 629046.22 318380.56 Tangshan Caofeidian District Bohai Kindergarten Receipt ofservices/labor 581900.00 846800.00 Dachang Shougang Machinery & Electric Co.Ltd. Purchase of goods 333690.00 Qianan Shougang K.wah Construction Receipt of MATERIALS Company Limited services/labor 318469.13 2023904.40 Beijing Shougang Huaxia Engineering Technology Receipt of Co. Ltd. services/labor 591630.77 179245.28 Qinhuangdao Shougang Plate Co. Ltd. Purchase of goods 250641.60 Bohai International Conference Center Co. Ltd. Receipt ofservices/labor 111696.84 499157.74 Suzhou Jingshou Commercial Management Co. Receipt of Ltd. services/labor 10680.00 Heping Shoushi International Business Exhibition Receipt of Services (Beijing) Co. Ltd. services/labor 5094.34 82341.58 YASKAWA Shougang Robot Co. Ltd. Receipt ofservices/labor 284439.82 Beijing Aidi Geological Engineering Technology Receipt of Co. Ltd. services/labor 79245.28 Beijing Shoubang New Materials Co. Ltd. Purchase of goods 160201.44 Beijing Shougang Construction Investment Co. Receipt of Ltd. services/labor 10167678.44 Beijing Shoujian Hengxin Labor Service Co. Ltd. Receipt ofservices/labor 138500.00 Beijing Shouyun Logistics Co. Ltd. Receipt ofservices/labor 1247830.84 Guizhou Guigang Drilling Tool Manufacturing Co. Ltd. Purchase of goods 1353767.41 Jilin Tonggang International Trade Co. Ltd. Purchase of goods 84995567.71 Jingtang Port Shougang Terminal Co. Ltd. Receipt ofservices/labor 11328301.89 Longnan City Xiong Wei Wan Li New Material Co. Ltd. Purchase of goods 16618904.34 Qinhuangdao Shougang Machinery Co. Ltd. Purchase of goods 71430951.60 Qinhuangdao Shougang Machinery Co. Ltd. Receipt ofservices/labor 53315031.75 Shougang Environmental Industry Co. Ltd. Receipt ofservices/labor 282000.00 Shougang Technician College Receipt ofservices/labor 35940.59 Shougang Qianjin Machinery Factory Beijing Receipt of Maintenance Branch services/labor 4146927.55 Shougang Qianjin Machinery Factory Beijing Maintenance Branch Purchase of goods 334632.00 179Beijing Shougang Co. Ltd. Annual Report 2025 Related party Contents of related Amount incurred in Amount incurred in priortransactions current period period Tonghua Iron and Steel Co. Ltd. Purchase of goods 44568228.31 Tonghua Iron and Steel Co. Ltd. Receipt ofservices/labor 281.13 Sale of goods/rendering of services Unit: RMB Yuan Contents of Related party related Amount incurred in Amount incurred in transactions current period prior period Shougang (Qingdao) Steel Industry Co. Ltd. Sale of goods 1940106022.51 1646853666.16 Tangshan Shougang Jingtang Xishan Coking Co. Ltd. Rendering ofservices/labor 245893713.56 241752662.75 Tangshan Shougang Jingtang Xishan Coking Co. Ltd. Sale of goods 891031783.99 898635440.88 Tianjin Wuchan Shougang Steel Processing and Rendering of Distribution Co. Ltd. services/labor 495530.70 526909.36 Tianjin Wuchan Shougang Steel Processing and Distribution Co. Ltd. Sale of goods 473802230.09 493883566.35 Shougang Casey Steel Co. Ltd. Rendering ofservices/labor 1795010.28 2551355.54 Shougang Casey Steel Co. Ltd. Sale of goods 227025602.50 267611284.40 Qianan Shougang K.wah Construction MATERIALS Company Limited Sale of goods 18033414.95 17260985.02 Tangshan Caofeidian Dunshi New Building Materials Co. Rendering of Ltd. services/labor 23607366.83 25634904.90 Tangshan Caofeidian Dunshi New Building Materials Co.Ltd. Sale of goods 122191585.71 149987723.76 Beijing Shougang Construction Group Co. Ltd. Rendering ofservices/labor 607268.34 823579.82 Beijing Shougang Construction Group Co. Ltd. Sale of goods 144085127.88 22257843.34 Qian'an Shoushi Packaging Service Co. Ltd. Sale of goods 122030206.13 156564920.68 Beijing Shougang Gas Co. Ltd. Rendering ofservices/labor 96226.42 95372.60 Beijing Shougang Gas Co. Ltd. Sale of goods 115426390.22 127178070.22 Ningbo Shougang Zhejin Steel Materials Co. Ltd. Rendering ofservices/labor 6307.97 Ningbo Shougang Zhejin Steel Materials Co. Ltd. Sale of goods 115152915.05 126347477.97 Shougang Group Co. Ltd. Rendering ofservices/labor 129052964.49 154823411.35 Shougang Group Co. Ltd. Sale of goods 15722326.92 36861568.21 Shougang Group Finance Co. Ltd. Interest income 108554657.76 87509942.46 Hebei Shoulang New Energy Technology Co. Ltd. Sale of goods 96578001.74 109683694.75 Beijing Shougang Machinery & Electric Co. Ltd. Rendering ofservices/labor 34764.15 9720.88 Beijing Shougang Machinery & Electric Co. Ltd. Sale of goods 75765375.65 92336980.86 Qian'an Jinyu Shougang Environmental Protection Rendering of Technology Co. Ltd. services/labor 496602.00 373781.62 Qian'an Jinyu Shougang Environmental Protection Technology Co. Ltd. Sale of goods 70648331.63 41732219.41 Qian'an Sinochem Coal Chemical Industrial Co. Ltd. Rendering ofservices/labor 346284.44 438464.00 Qian'an Sinochem Coal Chemical Industrial Co. Ltd. Sale of goods 227301161.08 225250963.44 Guangzhou Jinghai Shipping Co. Ltd. Rendering ofservices/labor 38435031.41 40643697.03 Qian'an Shougang Xingkuang Industrial Co. Ltd. Sale of goods 34854760.55 30010613.04 Tangshan Guoxing Industry Co. Ltd. Rendering ofservices/labor 495746.15 473649.07 Tangshan Guoxing Industry Co. Ltd. Sale of goods 24285497.67 3764299.61 Beijing Shougang Ferroalloy Co. Ltd. Rendering ofservices/labor 93396.23 75471.70 180Beijing Shougang Co. Ltd. Annual Report 2025 Contents of Related party related Amount incurred in Amount incurred in transactions current period prior period Beijing Shougang Ferroalloy Co. Ltd. Sale of goods 23444062.01 23424269.41 Beijing Shougang Huaxia Engineering Technology Co. Ltd. Sale of goods 20698004.66 3801517.78 Beijing Shougang Mining Construction Co. Ltd. Sale of goods 10708164.00 875654.04 Beijing Shougang Lujiashan Limestone Mine Co. Ltd. Rendering ofservices/labor 73584.91 37735.85 Beijing Shougang Lujiashan Limestone Mine Co. Ltd. Sale of goods 10848921.15 5332439.45 Shougang Changzhi Steel & Iron Co. Ltd. Rendering ofservices/labor 531792.44 611792.44 Shougang Changzhi Steel & Iron Co. Ltd. Sale of goods 6614677.50 1656241.06 Shougang International (Germany) GmbH Sale of goods 6005992.82 476442.62 Qinhuangdao Shounai New Materials Co. Ltd Sale of goods 11189302.48 Shoujia Huanke (Qian'an) Co. Ltd. Sale of goods 352416.59 11537359.42 Tangshan Caofeidian Shiye Port Co. Ltd. Sale of goods 3060274.00 2487828.00 Beijing Shouronghui Science and Technology Development Co. Ltd. Sale of goods 2953592.45 35206601.90 Beijing Shoujia Steel Structure Co. Ltd. Rendering ofservices/labor 1817572.53 1575368.78 Beijing Shoujia Steel Structure Co. Ltd. Sale of goods 9218330.14 Beijing Jin'anyuan Auto Transportation Co. Ltd. Rendering ofservices/labor 1480288.68 1739758.21 Beijing Jin'anyuan Auto Transportation Co. Ltd. Sale of goods 122692.00 137958.60 Tonghua Iron and Steel Co. Ltd. Rendering ofservices/labor 1235379.25 712264.18 Tonghua Iron and Steel Co. Ltd. Sale of goods 4541476.54 Shougang Gas Tangshan Co. Ltd. Sale of goods 1181890.21 3011696.79 Beijing Shoucheng Packaging Service Co. Ltd. Rendering ofservices/labor 10453.50 Beijing Shoucheng Packaging Service Co. Ltd. Sale of goods 1088883.45 4368614.55 Shougang Shuicheng Iron & Steel (Group) Co. Ltd. Rendering ofservices/labor 792358.49 567066.03 Qian'an Shougang Equipment Structure Co. Ltd. Rendering ofservices/labor 780930.46 117591.89 Qian'an Shougang Equipment Structure Co. Ltd. Sale of goods 2111299.32 Jingtang Port Shougang Terminal Co. Ltd. Rendering ofservices/labor 727247.24 481351.85 GOLD COSMOS Development Limited Sale of goods 733476.13 GOLD COSMOS Development Limited Rendering ofservices/labor 4468.08 Tangshan Caofeidian Shoushi Industrial Co. Ltd. Rendering ofservices/labor 14943.40 14943.40 Tangshan Caofeidian Shoushi Industrial Co. Ltd. Sale of goods 667440.00 775997.10 Beijing Shougang Catering Co. Ltd. Sale of goods 345041.23 351796.99 Beijing Shougang Automation Information Technology Rendering of Co. Ltd. services/labor 258372.28 1550274.26 Beijing Shougang Automation Information Technology Co. Ltd. Sale of goods 54989.28 74622.19 PetroChina Shougang (Beijing) Petroleumsales Co. Ltd. Sale of goods 306229.61 16469442.54 Beijing Beiyi New Materials Co. Ltd. Rendering ofservices/labor 152524.52 Beijing Beiyi New Materials Co. Ltd. Sale of goods 211824.77 1409569.03 Tangshan Shouxin Automation Information Technology Rendering of Co. Ltd. services/labor 225791.23 Beijing Shougang Material Trade Co. Ltd. Rendering ofservices/labor 37735.85 Beijing Shougang Material Trade Co. Ltd. Sale of goods 186312.67 91890.27 Beijing Shougang International Engineering Technology Rendering of Co. Ltd. services/labor 89446.22 1254015.09 Beijing Shougang International Engineering Technology Sale of goods 92085.71 35062599.00 181Beijing Shougang Co. Ltd. Annual Report 2025 Contents of Related party related Amount incurred in Amount incurred in transactions current period prior period Co. Ltd.Beijing Shougang Resource Recycling Technology Co. Ltd. Rendering ofservices/labor 111320.76 109794.07 Beijing Shougang Resource Recycling Technology Co. Ltd. Sale of goods 46173.32 27753.24 Guizhou Shuigang Logistics Co. Ltd. Rendering ofservices/labor 138615.72 55298.87 POSCO-TISCO (Jilin) Processing Center Co. Ltd. Sale of goods 130092.63 7801088.43 Liaoning Shougang Iron Boron Co. Ltd. Rendering ofservices/labor 104292.45 Shougang Yili Steel Co. Ltd. Rendering ofservices/labor 94339.62 94339.62 Guizhou Liupanshui Shenghongda Mechanical Equipment Rendering of Manufacturing Co. Ltd. services/labor 55831.81 1956.76 Guizhou Bohong Industry Co. Ltd. Rendering ofservices/labor 37916.35 38759.84 Beijing Shougang Gitane New Materials Co. Ltd. Rendering ofservices/labor 34764.15 Shougang Guiyang SPECIAL Steel Co. Ltd. Rendering ofservices/labor 34764.15 7547.17 Beijing Shoujian Equipment Maintenance Co. Ltd. Rendering ofservices/labor 2529.05 Beijing Shougang Park Green Co. Ltd. Sale of goods 3213.88 2797.45 China Shougang International Trade & Engineering Rendering of Corporation services/labor 562.97 Beijing Relizhongda Heat Exchange Equipment Co. Ltd. Rendering ofservices/labor 1166.98 Beijing Shougang City Transportation Holdings Co. Ltd. Sale of goods 108274993.89 Beijing Shougang Real Estate Development Co. Ltd. Rendering ofservices/labor 849.06 Beijing Shougang Resources Comprehensive Utilization Technology Development Co. Ltd. Sale of goods 214683.10 Guizhou Guigang Equipment Engineering Co. Ltd. Rendering ofservices/labor 943.40 Hebei Shenzhou Yuanda Real Estate Development Co. Rendering of Ltd. services/labor 1172550.60 Qian'an Shouxin Automation Information Technology Co. Rendering of Ltd. services/labor 283.02 Qinhuangdao Shougang Machinery Co. Ltd. Rendering ofservices/labor 998903.20 Qinhuangdao Shougang Machinery Co. Ltd. Sale of goods 347818063.19 Qinhuangdao Shougang Racing Valley Development Co. Rendering of Ltd. services/labor 117132.72 Shougang Fushan Resources Group Co. Ltd. Rendering ofservices/labor 660377.36 Shougang International (Austria) Co. Ltd. Sale of goods 2025758.99 Shoushi Fengyang International Logistics Services (Tangshan Caofeidian) Co. Ltd. Sale of goods 133392.42 Tangshan Tangcao Railway Co. Ltd. Rendering ofservices/labor 296792.43 (2) Details of related party leases The Company as a lessor: Unit: RMB Yuan Lessee Type of assets leased Lease income Lease income recognized inrecognized in 2025 2024 Tangshan Shougang Jingtang Xishan Coking Co. Ltd. Land use rights 19629904.76 19629904.76 Tangshan Shougang Jingtang Xishan Coking Plant and buildings 5416513.80 5416513.79 182Beijing Shougang Co. Ltd. Annual Report 2025 Co. Ltd.Hebei Shoulang New Energy Technology Co. Ltd. Plant and buildings 2944689.48 2944689.48 Hebei Shoulang New Energy Technology Co. Ltd. Land use rights 1714285.72 1714285.72 Tangshan Guoxing Industry Co. Ltd. Land use rights 1421392.38 1421392.34 Tangshan Guoxing Industry Co. Ltd. Equipment 919649.72 4120717.52 Tangshan Guoxing Industry Co. Ltd. Plant and buildings 340403.40 716937.72 Tangshan Caofeidian Dunshi New Building Materials Co. Ltd. Land use rights 2380761.90 2380761.90 Beijing Shoucheng Packaging Service Co.Ltd. Plant and buildings 1868192.00 1868192.00 Beijing Shougang Machinery & Electric Co.Ltd. Land use rights 1420000.00 1420000.00 Beijing Shougang Machinery & Electric Co.Ltd. Plant and buildings 74752.29 Qian'an Sinochem Coal Chemical Industrial Co. Ltd. Land use rights 1197050.00 1065067.58 Qian'an Jinyu Shougang Environmental Protection Technology Co. Ltd. Land use rights 1174658.50 Beijing Shougang Ferroalloy Co. Ltd. Land use rights 652075.00 449154.05 Shougang Gas Tangshan Co. Ltd. Land use rights 565714.29 565714.29 Beijing Shougang Construction Group Co.Ltd. Land use rights 520000.00 520000.00 Beijing Shougang Construction Group Co.Ltd. Plant and buildings 548110.25 Qianan Shougang K.wah Construction MATERIALS Company Limited Land use rights 360650.00 248418.37 Beijing Shougang Lanzatech Co. Ltd. Land use rights 165333.33 165333.33 Shoujia Huanke (Qian'an) Co. Ltd. Land use rights 103500.00 115025.19 Tangshan Caofeidian Shoushi Industrial Co. Ltd. Plant and buildings 99082.57 Beijing Shougang International Engineering Technology Co. Ltd. Plant and buildings 59788.99 Guangzhou Jinghai Shipping Co. Ltd. Plant and buildings 13510.00 13510.00 Qian'an Shougang Equipment Structure Co. Ltd. Plant and buildings 6577.98 256293.58 Beijing Jin'anyuan Auto Transportation Co.Ltd. Plant and buildings 198165.14 The Company as a lessee: Unit: RMB Yuan Rental costs for Variable lease short-term leases payments not and leases of low- included in the Interest expenses on value assets with measurement of the Rental paid assumed lease Increase in right-of- liabilities use assets Type of simplified treatment lease liabilities (if Lessor assets (if applicable) applicable) leased Amount Amount Amount Amountincurred incurred Amount incurred Amount Amount Amount Amount Amount in incurred in incurred in incurred incurred incurred incurred incurred current in prior current in prior current in prior in in period period period current in prior current in prior period period period period period period period Shougang Plant Group and 210095 203268 150483 162623 Co. Ltd. buildings 52.11 21.27 15.30 46.43 Beijing Shougang Constructi Plant on and 548082 101676 201297.Investme buildings 3.17 78.44 61 nt Co.Ltd.Beijing Plant 291261 369206. 734443. 183Beijing Shougang Co. Ltd. Annual Report 2025 Shouao and 2.92 46 32 Real buildings Estate Co. Ltd.Beijing Shougang Internatio nal Plant Engineeri and 65170.0 ng buildings 0 Technolo gy Co.Ltd.Tangshan Machine Guoxing ry and 434823. 104220 Industry equipme 00 9.00 Co. Ltd. nt (3) Details of related party guarantees The Company as a guarantor Unit: RMB Yuan Guarantee Amount of guarantee Beginning date Maturity date Status ofguarantee Shougang (Qingdao) Steel Industry Co. Ltd. 17850000.00 23 October 2025 22 October 2026 No Shougang (Qingdao) Steel Industry Co. Ltd. 19950000.00 29 December 2025 18 November 2026 No Shougang (Qingdao) Steel Industry Co. Ltd. 35000000.00 20 September 2025 20 September 2026 No Shougang (Qingdao) Steel Industry Co. Ltd. 22050000.00 13 November 2025 12 November 2026 No Shougang (Qingdao) Steel Industry Co. Ltd. 35000000.00 18 September 2025 16 January 2026 No Shougang (Qingdao) Steel Industry Co. Ltd. 54600000.00 31 October 2025 31 October 2026 No Qian'an Sinochem Coal Chemical Industrial Co. Ltd. 140000000.00 8 August 2025 20 July 2026 No Qian'an Sinochem Coal Chemical Industrial Co. Ltd. 140000000.00 18 August 2025 17 August 2026 No Qian'an Sinochem Coal Chemical Industrial Co. Ltd. 70000000.00 5 September 2025 3 September 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 3680000.00 3 July 2025 3 January 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 1536000.00 6 August 2025 31 January 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 2880000.00 20 August 2025 20 February 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 1776000.00 20 October 2025 17 April 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 608000.00 5 November 2025 5 May 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 5440000.00 6 November 2025 6 May 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 5440000.00 1 December 2025 30 May 2026 No Ningbo Shougang Zhejin Steel Materials Co. Ltd. 640000.00 10 December 2025 31 May 2026 No (4) Lending and borrowing of related party funds Unit: RMB Yuan Related party Amounts lent andborrowed Beginning date Maturity date Note Borrowing Shougang Group Finance 7271605715.28 14 January 2025 9 December 2026 Short-term borrowings 184Beijing Shougang Co. Ltd. Annual Report 2025 Co. Ltd.Shougang Group Finance Co. Ltd. 2501439166.68 11 September 2023 12 November 2028 Long-term borrowings Shougang Group Finance Co. Ltd. 3580000000.00 24 July 2025 24 June 2026 Notes payable Lending (5) Remuneration of key management personnel The Company has 11 key management personnel in 2025 and 12 key management personnel in 2024.The remuneration payment is as follows: Item Amount incurred in current year Amount incurred in prior year Remuneration of key management personnel RMB 7.0578 million RMB 9047600 Note: The year-on-year decrease in remuneration of key management personnel is mainly attributable to the settlement of tenure incentive compensation for the previous term based on the 2024 performance assessment. 6. Receivables from and payables to related parties (1) Receivables from related parties Unit: RMB Yuan Closing balance Opening balance Item Related party Book balance Bad debtprovision Book balance Bad debt provision Bank deposits Hua Xia Bank Co.Ltd. 533924.24 303560.72 Bank Shougang Group Finance deposits Co. Ltd. 10563849588.79 8769194357.76 Accounts Shougang Casey Steel receivable Co. Ltd. 242741924.31 9181116.63 257916240.63 9671882.18 Accounts Qianan Shougang K.wah receivable Construction MATERIALS 37521373.06 6224915.84 50121363.06 9911867.96Company Limited Accounts Guangzhou Jinghai receivable Shipping Co. Ltd. 8621972.49 326104.92 9366559.81 351246.83 Accounts Beijing Shougang receivable Construction Group Co. 8292637.27 399779.63 475998.30 17016.22Ltd.Accounts Qian'an Shougang receivable Xingkuang Industrial Co. 7273399.81 275098.47 6019653.84 225737.56Ltd.Accounts Beijing Shougang Mining receivable Construction Co. Ltd. 4636514.42 175364.76 Accounts Shougang Changzhi Steel receivable & Iron Co. Ltd. 2862935.05 108283.48 6194628.90 Accounts Tangshan Tangcao receivable Railway Co. Ltd. 2030599.98 1393261.40 4180828.46 1081802.52 Accounts Tangshan Shougang receivable Jingtang Xishan Coking 1270428.90 48050.85Co. Ltd.Accounts Tangshan Caofeidian receivable Shoushi Industrial Co. 210999.64 7980.54 205233.72 7336.79Ltd.Accounts Jingtang Port Shougang receivable Terminal Co. Ltd. 42519.40 1608.19 30209.98 1132.88 Accounts Beijing Shougang receivable Material Trade Co. Ltd. 35746.85 1352.03 555213.52 Accounts receivable Shougang Group Co. Ltd. 65881000.48 2470538.64 Accounts Qian'an Jinyu Shougang receivable Environmental 107148.38 4052.62 4005181.19 150194.65 185Beijing Shougang Co. Ltd. Annual Report 2025 Protection Technology Co. Ltd.Accounts Beijing Shougang Huaxia receivable Engineering Technology 1748412.19 1717315.70Co. Ltd.Accounts Tonghua Iron and Steel receivable Co. Ltd. 1725000.00 65243.88 982500.00 56928.94 Accounts Beijing Shougang receivable Automation Information 549968.39 166409.62 944350.00 33759.08Technology Co. Ltd.Accounts Beijing Shougang receivable International Engineering 1105670.68 218800.00Technology Co. Ltd.Accounts Beijing Shoutaizhongxin receivable Science & Technology 27830.00 27830.00Co. Ltd.Accounts Beijing Shougang receivable Machinery & Electric Co. 973156.10 839.70Ltd.Accounts Qinhuangdao Shouqin receivable Metal Materials Co. Ltd. 1760506.53 Accounts Qian'an Shougang receivable Equipment Structure Co. 27762.68Ltd.Accounts Shougang Yili Steel Co.receivable Ltd. 100000.00 3782.25 Accounts Shougang Shuicheng Iron receivable & Steel (Group) Co. Ltd. 480000.00 18154.82 Prepayment s Shougang Group Co. Ltd. 1689288857.76 1047698624.39 Prepayment Tangshan Caofeidian s Ganglian Logistics Co. 85338118.44 378259396.89Ltd.Prepayment China Shougang s International Trade & 6788354.60 24419172.91Engineering Corporation Tianjin Wuchan Prepayment Shougang Steel s Processing and 6576342.92 3736059.53 Distribution Co. Ltd.Prepayment Tangshan Caofeidian s Shiye Port Co. Ltd. 563377.23 Prepayment Liaoning Shougang Iron s Boron Co. Ltd. 384706.29 Prepayment Beijing Shougang s Material Trade Co. Ltd. 115075.00 14944.00 Prepayment Tonghua Iron and Steel s Co. Ltd. 78882.60 87647.33 Prepayment Beijing Shougang s International Engineering 189.60Technology Co. Ltd.Prepayment Beijing Jin'anyuan Auto s Transportation Co. Ltd. 3092836.70 Prepayment Beijing Shougang Huaxia s Engineering Technology 250000.00Co. Ltd.Qian'an Jinyu Shougang Prepayment Environmental s Protection Technology 62000.00 Co. Ltd.Other Beijing Shougang receivables Material Trade Co. Ltd. 770000.00 38500.00 70000.00 186Beijing Shougang Co. Ltd. Annual Report 2025 Other Qinhuangdao Shouqin receivables Metal Materials Co. Ltd. 683907.90 273563.16 688907.90 Other receivables Shougang Group Co. Ltd. 451086.59 26641.94 Other Qian'an Shougang receivables Qiangang Hotel Co. Ltd. 6432.00 2572.80 6432.00 Dividends receivable Mintian Steel Co. Ltd. 400000.00 Dividends Beijing Shougang receivable Resource Recycling 4500000.00Technology Co. Ltd. (2) Payables to related parties Unit: RMB Yuan Item Related party Closing book balance Opening book balance Contract liabilities Shougang (Qingdao) Steel Industry Co. Ltd. 173392052.75 120830496.13 Contract liabilities Hebei Shoulang New Energy Technology Co. Ltd. 14516151.16 17198866.82 Contract Beijing Shougang Huaxia Engineering Technology liabilities Co. Ltd. 8093668.44 2003004.34 Contract Tianjin Wuchan Shougang Steel Processing and liabilities Distribution Co. Ltd. 410903.64 713289.62 Contract Tangshan Caofeidian Dunshi New Building liabilities Materials Co. Ltd. 1682922.32 1901702.18 Contract liabilities Shougang Casey Steel Co. Ltd. 1605104.72 836655.17 Contract liabilities Qian'an Shoushi Packaging Service Co. Ltd. 4979927.45 7143130.35 Contract liabilities Ningbo Shougang Zhejin Steel Materials Co. Ltd. 1315428.95 11049301.09 Contract Beijing Shougang Lujiashan Limestone Mine Co.liabilities Ltd. 1240446.04 1401649.28 Contract Beijing Shouronghui Science and Technology liabilities Development Co. Ltd. 293973.58 1589234.60 Contract liabilities Qinhuangdao Shounai New Materials Co. Ltd 358250.88 2094081.27 Contract liabilities Tangshan Caofeidian Shoushi Industrial Co. Ltd. 176991.15 374110.96 Contract liabilities Beijing Shougang Construction Group Co. Ltd. 417350.28 170843.80 Contract Beijing Shougang International Engineering liabilities Technology Co. Ltd. 80367.24 Contract liabilities Beijing Shoucheng Packaging Service Co. Ltd. 57947.97 425606.35 Contract Beijing Shougang Automation Information liabilities Technology Co. Ltd. 88271.70 Contract liabilities Qian'an Shougang Equipment Structure Co. Ltd. 202618.80 117592.36 Contract liabilities Beijing Jin'anyuan Auto Transportation Co. Ltd. 141267.58 452091.57 Contract liabilities Dachang Shougang Machinery & Electric Co. Ltd. 2215.64 2477.96 Contract Shougang Shuicheng Iron & Steel (Group) Saide liabilities Construction Co. Ltd. 712.93 805.61 Contract liabilities Tianjin Shougang Electrical Equipment Co. Ltd. 149.73 169.19 Contract liabilities Chaoyang Shougang Beifang Machinery Co. Ltd. 100.90 114.02 Contract Shougang Group Co. Ltd. 0.65 0.73 187Beijing Shougang Co. Ltd. Annual Report 2025 Item Related party Closing book balance Opening book balance liabilities Contract liabilities Beijing Shougang Machinery & Electric Co. Ltd. 4805798.25 2230862.06 Contract PetroChina Shougang (Beijing) Petroleumsales Co.liabilities Ltd. - 492189.42 Contract liabilities Beijing Beiyi New Materials Co. Ltd. 49555.54 261019.10 Contract liabilities Beijing Shoujia Steel Structure Co. Ltd. 398504.76 246993.08 Contract liabilities Shoujia Huanke (Qian'an) Co. Ltd. - 200000.00 Contract Tangshan Caofeidian Industrial District Shouhanxin liabilities Industrial Co. Ltd. 173402.08 173402.08 Contract liabilities Beijing Shougang Gitane New Materials Co. Ltd. 69810.40 69810.40 Contract liabilities Beijing Shouyu Industry and Trade Co. Ltd. - 58437.91 Contract liabilities Beijing Huaxia Shouke Technology Co. Ltd. 50000.00 50000.00 Contract Beijing Shougang Resources Comprehensive liabilities Utilization Technology Development Co. Ltd. 50000.00 50000.00 Contract liabilities Beijing Shoujian Equipment Maintenance Co. Ltd. 100000.00 50000.00 Contract liabilities Guizhou Bohong Industry Co. Ltd. 50000.00 50000.00 Contract liabilities Beijing Shougang Mining Construction Co. Ltd. - 11427.43 Contract liabilities Tangshan Guoxing Industry Co. Ltd. - 10163.92 Contract liabilities Guizhou Shuigang Logistics Co. Ltd. 25927.40 Contract Qian'an Jinyu Shougang Environmental Protection liabilities Technology Co. Ltd. 1234518.97 Contract liabilities Shanxi Changgang Ruichang Cement Co. Ltd. 50000.00 Contract liabilities Shanxi Changtie Lvneng Logistics Park Co. Ltd. 50000.00 Contract liabilities Shoujia Huanke (Qian'an) Co. Ltd. 200000.00 Accounts payable Beijing Shougang Material Trade Co. Ltd. 2549822638.25 2363577396.99 Accounts payable Tangshan Shougang Jingtang Xishan Coking Co. Ltd. 2005847460.83 1443497854.07 Accounts payable Beijing Shougang Construction Group Co. Ltd. 582723138.34 621731121.63 Accounts Beijing Shougang International Engineering payable Technology Co. Ltd. 366641731.93 429301810.06 Accounts Beijing Shougang Lujiashan Limestone Mine Co.payable Ltd. 259929710.72 269575785.95 Accounts payable Qian'an Sinochem Coal Chemical Industrial Co. Ltd. 195517457.91 267880864.14 Accounts Beijing Shougang Automation Information payable Technology Co. Ltd. 191483123.63 212263659.30 Accounts Tangshan Caofeidian Industrial District Shouhanxin payable Industrial Co. Ltd. 158151828.82 174818061.95 Accounts payable Guangzhou Jinghai Shipping Co. Ltd. 83124921.46 126109802.19 Accounts payable Qian'an Shoushi Packaging Service Co. Ltd. 185116340.36 144973788.17 188Beijing Shougang Co. Ltd. Annual Report 2025 Item Related party Closing book balance Opening book balance Accounts China Shougang International Trade & Engineering payable Corporation 65817278.94 704244193.18 Accounts payable Shougang Group Co. Ltd. 4426454941.75 4167347367.12 Accounts payable Beijing Shougang Gas Co. Ltd. 90154658.39 82934996.84 Accounts payable Tangshan Shougang Malanzhuang Iron Ore Co. Ltd. 59894042.26 79331760.37 Accounts payable Qian'an Shougang Equipment Structure Co. Ltd. 55884740.34 65900052.41 Accounts payable Qinhuangdao Shounai New Materials Co. Ltd 53724002.05 51686325.60 Accounts payable Tangshan Guoxing Industry Co. Ltd. 39040958.40 52639317.78 Accounts payable Tangshan Caofeidian Shiye Port Co. Ltd. 34229561.64 46750099.16 Accounts Beijing Shougang Resources Comprehensive payable Utilization Technology Development Co. Ltd. 26605612.75 34942367.07 Accounts payable Beijing Shoucheng Packaging Service Co. Ltd. 26292610.79 23321622.83 Accounts payable Beijing Shouye Instruments & Meters Co. Ltd. 25239411.37 16952367.68 Accounts Qian'an Shouxin Automation Information payable Technology Co. Ltd. 24086170.66 22314179.60 Accounts Beijing Relizhongda Heat Exchange Equipment Co.payable Ltd. 13125022.99 14120948.61 Accounts payable Beijing Shoujian Equipment Maintenance Co. Ltd. 41291149.94 33808081.56 Accounts payable Tianjin Shougang Electrical Equipment Co. Ltd. 16172364.43 11025530.48 Accounts Qian'an Jinyu Shougang Environmental Protection payable Technology Co. Ltd. 13609082.42 7452895.26 Accounts payable Qinhuangdao Shouqin Metal Materials Co. Ltd. 12043123.08 12043123.06 Accounts payable Beijing Shougang Mining Construction Co. Ltd. 11601360.39 16775914.30 Accounts payable Beijing Jin'anyuan Auto Transportation Co. Ltd. 16184953.97 13588996.27 Accounts payable Beijing Shougang Machinery & Electric Co. Ltd. 133224748.86 104283279.62 Accounts payable Qian'an Shougang Xingkuang Industrial Co. Ltd. 9769355.54 8358053.59 Accounts payable Beijing Shougang Park Green Co. Ltd. 9840394.63 13877418.59 Accounts PetroChina Shougang (Beijing) Petroleumsales Co.payable Ltd. 15180906.19 13263175.23 Accounts Beijing Shoutaizhongxin Science & Technology Co.payable Ltd. 7272822.33 7245908.61 Accounts payable Beijing Huaxia Shouke Technology Co. Ltd. 6610336.07 5120620.28 Accounts payable Shanxi Yicheng Shouwang Coal Industry Co. Ltd. 6431410.40 Accounts payable Qian'an Shougang Qiangang Hotel Co. Ltd. 5595473.22 5594368.36 Accounts payable Tangshan Caofeidian Shoushi Industrial Co. Ltd. 14939196.74 12355520.39 Accounts Beijing Shouke Xingye Engineering Technology Co.payable Ltd. 4331479.21 Accounts Beijing Shouyu Industry and Trade Co. Ltd. 1377287.86 6503781.48 189Beijing Shougang Co. Ltd. Annual Report 2025 Item Related party Closing book balance Opening book balance payable Accounts payable Beijing Shougang Ferroalloy Co. Ltd. 150018550.30 148307154.23 Accounts payable Beijing Chengxin Project Supervision Co. Ltd. 2750519.76 4403966.04 Accounts payable Beijing Shoujia Steel Structure Co. Ltd. 9385784.11 10622449.84 Accounts Beijing Shougang Futong Electromechanical payable Engineering Co. Ltd. 795196.00 624629.15 Accounts payable Beijing Shouyi Mining Hospital Co. Ltd. 2007148.27 2026078.28 Accounts payable Beijing Shoubang New Materials Co. Ltd. 1715419.65 1658353.65 Accounts payable Jingxi Shoutang Supply Chain Management Co. Ltd. 3280074.51 8498453.26 Accounts payable Beijing Shougang Catering Co. Ltd. 1495256.97 1691528.74 Accounts payable Hebei Shoulang New Energy Technology Co. Ltd. 1428659.95 1360620.81 Accounts payable Jingtang Port Shougang Terminal Co. Ltd. 1264000.00 1264000.00 Accounts Beijing Shougang Huaxia Engineering Technology payable Co. Ltd. 1174912.47 Accounts Beijing Shougang Yunxiang Industrial Technology payable Co. Ltd. 812805.44 709009.84 Accounts Beijing Shoujian Hengji Construction Engineering payable Co. Ltd. 728378.77 1148547.78 Accounts payable Beijing Shoushe Metallurgical Technology Co. Ltd. 330475.26 16002.60 Accounts payable Shougang Institute of Technology 238870.00 233360.00 Accounts Hebei Shenzhou Yuanda Real Estate Development payable Co. Ltd. 205000.00 Accounts Beijing Shoutegang Yuandong Magnesium Alloy payable Products Co. Ltd. 200408.00 Accounts Tianjin Wuchan Shougang Steel Processing and payable Distribution Co. Ltd. 199895.97 113014.49 Accounts payable Qian'an Golden Apple Kindergarten 187720.00 191140.00 Accounts payable Beijing Shougang Testing Technology Co. Ltd. 120078.00 862936.00 Accounts Qinhuangdao Shouqin Steel Machining & Delivery payable Co. Ltd. 103398.48 75377.84 Accounts payable Tangshan Caofeidian District Bohai Kindergarten 72000.00 115800.00 Accounts payable Dachang Shougang Machinery & Electric Co. Ltd. 59787.00 229900.00 Accounts payable Beijing Shoufang Commercial Management Co. Ltd. 151923.00 223694.50 Accounts Beijing Shougang Resource Recycling Technology payable Co. Ltd. 23684810.84 26867543.57 Accounts payable Chaoyang Shougang Beifang Machinery Co. Ltd. 7685.09 7685.09 Accounts Beijing Shougang 1919 Catering Management Co.payable Ltd. 7480.00 28178.00 Accounts payable Qinhuangdao Shougang Machinery Co. Ltd. 2393.10 2393.10 Accounts payable Shougang Group Finance Co. Ltd. 1720.00 190Beijing Shougang Co. Ltd. Annual Report 2025 Item Related party Closing book balance Opening book balance Accounts Beijing Xingyeda Machinery & Electric Equipment payable Manufacture Co. Ltd. 460.00 460.00 Accounts payable Beijing Soly Technology Co. Ltd. 23.00 41204.30 Accounts Beijing Aidi Geological Engineering Technology Co.payable Ltd. 51381.00 1133839.61 Accounts payable Peking University Shougang Hospital 2901767.87 3385068.76 Accounts payable Cockerill Engineering (Beijing) Co. Ltd. 569407.00 Accounts payable Beijing Shouao Real Estate Co. Ltd. 33120.00 3500.00 Accounts Beijing Shougang Environmental Engineering payable Technology Co. Ltd. 1109886.20 Accounts payable Beijing Shouyun Logistics Co. Ltd. 42579766.92 Accounts payable Bohai International Conference Center Co. Ltd. 150656.00 Accounts Ningbo Metallurgical Survey and Design Research payable Co. Ltd. 1745477.20 Accounts payable Shougang (Qingdao) Steel Industry Co. Ltd. 4424.21 4424.21 Accounts payable Shougang Luannan Macheng Mining Co. Ltd. 184110874.57 Accounts Shougang Qianjin Machinery Factory Beijing payable Maintenance Branch 883412.98 Accounts payable Shougang Commercial Factoring Co. Ltd. 12710.99 Accounts Tangshan Caofeidian Dunshi New Building payable Materials Co. Ltd. 14005442.23 Accounts payable Shougang (Qingdao) Steel Industry Co. Ltd. 8927.98 Accounts Beijing Shougang Power Plant Qian'an Maintenance payable Center 20000.00 Accounts payable Shougang Welfare Office 66836.40 Accounts Qinhuangdao Shougang Ouzhou Hotel Beijing payable Shoufang Commercial Management Co. Ltd. 52200.00 Accounts payable Beijing Shouqiao Innovation Real Estate Co. Ltd. 1154.00 Accounts payable Shougang Holding Trade (Hong Kong) Limited 3763689.67 Other payables China Shougang International Trade & EngineeringCorporation 6519707.96 6537960.55 Other payables Hebei Shenzhou Yuanda Real Estate DevelopmentCo. Ltd. 5000000.00 5000000.00 Other payables Tangshan Guoxing Industry Co. Ltd. 4450973.55 4450973.55 Other payables Tangshan Caofeidian Shoushi Industrial Co. Ltd. 3865587.23 3865587.23 Other payables Beijing Shougang Construction Group Co. Ltd. 3450000.00 3450000.00 Other payables Tangshan Caofeidian Industrial Zone JingtangIndustry Co. Ltd. 2910814.91 2910814.91 Other payables Shougang Group Co. Ltd. 1242527.37 57351462.33 Other payables Guangzhou Jinghai Shipping Co. Ltd. 507751.46 Other payables Shoushi Fengyang International Logistics Services(Tangshan Caofeidian) Co. Ltd. 100000.00 100000.00 Other payables Beijing Shougang Park Green Co. Ltd. 19893.26 Other current liabilities Shougang Commercial Factoring Co. Ltd. 147423441.63 401812816.77 Other non- Shougang Group Co. Ltd. 2200552060.52 2364112304.97 191Beijing Shougang Co. Ltd. Annual Report 2025 Item Related party Closing book balance Opening book balance current liabilities 7. Related party commitments See "Section V. I. Implementation of commitment" for details.XV. Share-based payment □Applicable□Non-applicable XVI.Commitments and contingencies 1. Material commitments Significant commitments as of the balance sheet date As of 31 December 2025 the Company has no undisclosed commitments that should be disclosed. 2. Contingencies (1) Significant contingencies as of the balance sheet date As of 31 December 2025 the Company has no undisclosed material contingencies such as pending litigation or external guarantees that should be disclosed. (2) If the Company has no significant or contingencies that need to be disclosed it should also be stated. The Company has no significant contingencies that need to be disclosed.XVII. Events after the balance sheet date 1. Profit distribution after the balance sheet date Dividend payout per 10 shares to be distributed 0.4 per 10 shares (RMB yuan) Proposed distribution of bonus shares per 10 0 shares (shares) Number of shares converted per 10 shares to be 0 distributed (shares) Dividend payout per 10 shares declared after 0.4 consideration and approval (RMB yuan) Bonus shares per 10 shares declared after 0 consideration and approval (shares) Number of shares converted per 10 shares declared after consideration and approval 0 (shares) Pursuant to the resolution of the 5th meeting of the 9th Board of Directors dated 16 April 2026 the Board of Directors proposes that the Company distribute cash dividends to all shareholders based on the total share capital on the record date for the implementation of the 2025 annual equity distribution. A total cash dividend of RMB 310198694.80 (tax inclusive) shall be distributed to all shareholders. Based on the Company’s total share capital of 7754967370 shares as of 16 April 2026 this translates to RMB 0.40 per 10 shares (tax inclusive). The remaining undistributed profits shall be carried forward to the next fiscal year.Profit distribution plan If the total number of the Company's share capital entitled to distribution rights changes before the implementation of the distribution plan the cash dividend per share will be adjusted based on the total number of shares entitled to distribution rights as of the record date for the cash dividend distribution in accordance with the principle that the total amount of cash distribution remains unchanged.The proposed profit distribution is subject to approval by the shareholders' meeting and has not been recognized as a liability in these financial statements. 2. Explanation of other events after the balance sheet date 192Beijing Shougang Co. Ltd. Annual Report 2025 (1) Equity incentive On 29 September 2025 the Company held the 20th meeting of the 8th Board of Directors which reviewed and approved the Proposal on the Company's Share Repurchase Plan. In 2025 the Company repurchased 26682716 shares of its own shares through centralized bidding with a total transaction amount of RMB 116640372.07 (excluding handling fees). From January to March 2026 the Company repurchased 44390896 shares of its own shares through centralized bidding with a total transaction amount of RMB 246206511.80 (excluding handling fees). As of 23 March 2026 the Company had cumulatively repurchased 71073612 shares of its own shares with a total transaction amount of RMB 362846883.87. Pursuant to the authorization of the first extraordinary general meeting of shareholders of the Company in 2026 the Company held the 3rd meeting of the 9th Board of Directors on 6 March 2026 which reviewed and approved the Proposal of Beijing Shougang Co. Ltd. on Granting Stock Options and Restricted Shares to Incentive Recipients. 6 March 2026 was determined as the grant date. The incentive instruments adopted in the incentive plan are stock options and restricted shares among which: the shares underlying the stock options are the Company's A-share ordinary shares to be privately issued to the incentive recipients and the shares underlying the restricted shares are the Company's A-share ordinary shares repurchased by the Company from the secondary market. Under this incentive plan 71073612 stock options with an exercise price of RMB 4.22 per share and 71073612 restricted shares with a grant price of RMB 2.53 per share were granted to 501 eligible incentive recipients.As of 6 March 2026 all 501 incentive recipients of the Company had paid cash subscription payments totaling RMB 179816238.36 at the rate of RMB 2.53 per share. Meanwhile the Company completed the grant of restricted shares at China Securities Depository and Clearing Corporation Limited Shenzhen Branch on 25 March 2026. (2) Explanation of other events after the balance sheet date As of 16 April 2026 there are no other events after the balance sheet date that should be disclosed by the Company.XVIII. Other significant events 1. Segment information According to its internal organizational structure management requirements and internal reporting system the Company divides its businesses into iron and steel segments. Therefore there is no need to present more detailed information on operating segments.External revenue of goods and services Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Iron and steel 102918417572.91 108461993386.29 Geographical information Current period or end of the current period Mainland China Hong Kong Offset Total Revenue from external transactions 102861161126.66 57256446.25 102918417572.91 Non-current assets 94172089807.70 94172089807.70 (Continued) Prior period or end of the prior period Mainland China Hong Kong Offset Total Revenue from external transactions 108412749676.41 49243709.88 108461993386.29 Non-current assets 99583393705.88 99583393705.88 193Beijing Shougang Co. Ltd. Annual Report 2025 2. Other significant transactions and events affecting investors' decision-making None XIX.Notes to the main items of the financial statements of the parent company 1. Accounts receivable (1) Disclosed by the aging Unit: RMB Yuan Aging Closing book balance Opening book balance Within 1 year (including 1 year) 2029059921.13 2465069041.78 1-2 years 16897940.77 30591805.62 Over 3 years 800000.00 1000000.00 4-5 years 1000000.00 Over 5 years 800000.00 Total 2046757861.90 2496660847.40 (2) Classified by bad debt provision method Unit: RMB Yuan Closing balance Opening balance Category Book balance Bad debt provision Book Book balance Bad debt provision Book Amount Proporti Amount Accrual value Amount Proporti Amount Accrual valueon ratio on ratio Assessed bad debt provisio 800000. 0.04% 800000. 100.00% 100000 0.04% 100000n 00 00 0.00 0.00 100.00% individu ally Includin g: Assessed bad debt provisio 204595 n in 7861.90 99.96% 863059 8.880.42% 203732249566131085248255 7263.020847.4099.96%12.910.53%2334.49 portfolio s Includin g: Total 204675 100.00% 943059 0.46% 203732 249666 141085 2482557861.90 8.88 7263.02 0847.40 100.00% 12.91 0.57% 2334.49 Assessed bad debt provision individually: Assessed bad debt provision individually Unit: RMB Yuan Opening balance Closing balance Name Book balance Bad debtprovision Book balance Bad debt provision Accrual ratio Reason for bad debts Overdue recourse notes 1000000.00 1000000.00 800000.00 800000.00 100.00% Overdue Total 1000000.00 1000000.00 800000.00 800000.00 Assessed bad debt provision in portfolios: Assessed bad debt provision in portfolios Unit: RMB Yuan Closing balance Name Book balance Bad debt provision Accrual ratio Accounts receivable with bad debt provision by portfolio of 2045957861.90 8630598.88 0.42% credit risk characteristics Total 2045957861.90 8630598.88 Description of the basis for determining the portfolio: Provision made based on credit risk characteristics portfolio 194Beijing Shougang Co. Ltd. Annual Report 2025 If the provision for bad debts on accounts receivable is based on a general model of expected credit losses: □ Applicable□ Non-applicable (3) Provision recovery or reversal of bad debt provision during the period Provision for bad debts in the current period: Unit: RMB Yuan Amount of change during the period Category Opening balance Recovered Closing balanceAccrual or reversed Write-offs Others Assessed bad debt provision individually 1000000.00 200000.00 800000.00 Accounts receivable with bad debt provision by portfolio of credit risk 13108512.91 -4477914.03 8630598.88 characteristics Total 14108512.91 -4477914.03 200000.00 9430598.88 (4) Accounts receivable and contract assets of the top five year-end balances grouped by party in arrears Unit: RMB Yuan As a percentage of Closing balance of Closing balance Closing balance of the total closing provision for bad Company name Closing balance of of contract accounts balance of debts on accountsaccounts receivable assets receivable and accounts receivable andcontract assets receivable and impairment of contract assets contract assets Client 1 1941023805.92 94.84% Client 2 37521373.06 1.83% 6224915.84 Client 3 24043464.80 1.17% 923194.82 Client 4 6189756.72 0.30% 237667.55 Client 5 4283225.05 0.21% Total 2013061625.55 98.35% 7385778.21 2. Other receivables Unit: RMB Yuan Item Closing balance Opening balance Dividends receivable 4900000.00 250000000.00 Other receivables 21030092.30 136280464.23 Total 25930092.30 386280464.23 (1) Dividends receivable Classification of dividends receivable Unit: RMB Yuan Item (or investee) Closing balance Opening balance Beijing Shougang Steel Trading Investment Management Co. Ltd. 250000000.00 Beijing Shougang Resource Recycling Technology Co. Ltd. 4500000.00 Mintian Steel Co. Ltd. 400000.00 Total 4900000.00 250000000.00 (2) Other receivables 1) Other receivables by nature of payment Unit: RMB Yuan Nature Closing book balance Opening book balance Petty cash 98278.25 Deposits 460000.00 Due from other companies 20600098.80 136189096.84 Total 21060098.80 136287375.09 195Beijing Shougang Co. Ltd. Annual Report 2025 2) Disclosed by the aging Unit: RMB Yuan Aging Closing book balance Opening book balance Within 1 year (including 1 year) 21060098.80 138217.25 1-2 years 136149157.84 Total 21060098.80 136287375.09 3) Classified by bad debt provision method Unit: RMB Yuan Closing balance Opening balance Category Book balance Bad debt provision Book Book balance Bad debt provision Book Amount Proportio Amount Accrual valuen ratio Amount Proportio n Amount Accrual value ratio Including: Assessed bad debt provision 21060098.80 100.00% 30006.50 0.14% 21030091362873 2.3075.09100.00%6910.860.01% 1362804 in 64.23 portfolios Including: Total 2106009 100.00% 30006.50 0.14% 2103009 13628738.80 2.30 75.09 100.00% 6910.86 0.01% 1362804 64.23 Assessed bad debt provision in portfolios: Assessed bad debt provision in portfolios Unit: RMB Yuan Closing balance Name Book balance Bad debt provision Accrual ratio Assessed bad debt provision in portfolios 21060098.80 30006.50 0.14% Total 21060098.80 30006.50 Provision for bad debts made on the basis of a general model of expected credit losses: Unit: RMB Yuan Phase I Phase II Phase III Expected credit loss Bad debt provision Expected credit Expected credit loss Total loss within 12 over the lifetime (no over the lifetime months credit impairment) (credit impairmentoccurred) Balance as at 1 January 20256910.866910.86 Balance as at 1 January 2025 in the current period Accrual in the current period 23095.64 23095.64 Balance as at 31 December 202530006.5030006.50 Changes in the carrying amount of the provision for losses that are material during the period □ Applicable□ Non-applicable 4) Provision recovery or reversal of bad debt provision during the period Provision for bad debts in the current period: Unit: RMB Yuan Opening Amount of change during the periodCategory balance Accrual Recovered or Charged off or Closing balance reversed written off Others Assessed bad debt provision 6910.86 23095.64 30006.50 in portfolios Total 6910.86 23095.64 30006.50 196Beijing Shougang Co. Ltd. Annual Report 2025 5) The top five other receivables classified by debtors are as follows: Unit: RMB Yuan Percentage of Company name Nature Closing balance Aging total other Closing balance of receivable (%) bad debt provision Counterparty 1 Current account 20459968.73 Within 1 year 97.15% Counterparty 2 Security fund 360000.00 Within 1 year 1.71% 18000.00 Counterparty 3 Security fund 100000.00 Within 1 year 0.48% 5000.00 Counterparty 4 Current account 38639.01 Within 1 year 0.18% 1931.95 Total 20958607.74 99.52% 24931.95 3. Long-term equity investments Unit: RMB Yuan Closing balance Opening balance Item Book balance Impairmentprovision Book value Book balance Impairment provision Book value Investments in 36292348242.9 36292348242.9 36142348242.9 36142348242.9 subsidiaries 4 4 4 4 Investments in associates and 669102174.18 669102174.18 577728513.74 577728513.74 joint ventures Total 36961450417.1 36961450417.1 36720076756.6 36720076756.62 2 8 8 (1) Investments in subsidiaries Unit: RMB Yuan Opening Opening Changes of increase or decrease in current periodbalance of Closing Closing Investee balance Deductions balance balance of (book value) impairment Additions of Provision for impairment provision investment of impairment Others (book value)investment provision Shougang Jingtang 162848988 162848988 United Iron & 13.20 13.20 Steel Co. Ltd.Beijing Shougang Cold 183107590 183107590 Rolling Co. 0.00 0.00 Ltd.Qian'an Shougang Metallurgical 1900000.00 150000000. 151900000.Technology 00 00 Co. Ltd.Beijing Shougang Steel Trading 105404680 105404680 Investment 07.05 07.05 Management Co. Ltd.Shougang Zhixin Electromagnet 748400552 748400552 ic Materials 2.69 2.69 (Qian'an) Co.Ltd.Total 361423482 150000000. 36292348242.94 00 42.94 (2) Investments in associates and joint ventures Unit: RMB Yuan Opening Changes of increase or decrease in current period Closing Opening balanceof Investm Adjustm Cash Closing balance Investee balance Addition Deducti Provisio balance of (book impairm s of ons of ent ents in Other dividen impairm ent investm investm profit or other equity d or n for Others (book value) entprovisio ent ent loss compre changes profit impairm value) provisio n recogniz hensive declare ent n 197Beijing Shougang Co. Ltd. Annual Report 2025 ed income d under equity method I. Joint ventures II. Associates Beijing Shouxin Jinyuan Manageme nt 82766 35411 118178 Consulting 953.08 529.02 482.10 Center (Limited Partnership ) Qian'an Sinochem Coal 444612 24082 468695 Chemical 861.27 579.33 440.60 Industrial Co. Ltd.Beijing Shougang Resource 22980 15022 49500 19532 Recycling 061.71 72.76 00.00 334.47 Technology Co. Ltd.Qian'an Jinyu Shougang Environme 27368 35000 327279 62695 ntal 637.68 000.00 .33 917.01 Protection Technology Co. Ltd.Sub-total 577728 35000 61323 49500 669102513.74 000.00 660.44 00.00 174.18 Total 577728 35000 61323 49500 669102513.74 000.00 660.44 00.00 174.18 The recoverable amount is determined as the net of fair value less costs of disposal □ Applicable□ Non-applicable The recoverable amount is determined as the present value of the expected future cash flows □ Applicable□ Non-applicable 4. Operating revenue and cost of sales Unit: RMB Yuan Amount incurred in current period Amount incurred in prior period Item Revenue Cost of sales Revenue Cost of sales Main business 33767239846.23 32625611672.50 35458424926.58 34343336705.76 Other businesses 1364090253.09 1322024802.95 1345157952.60 1224581104.08 Total 35131330099.32 33947636475.45 36803582879.18 35567917809.84 Other notes (1) Revenue and cost of sales by product type Amount incurred in current year Amount incurred in prior year Item Revenue Cost of sales Revenue Cost of sales Main business: Industrial pure iron 627911454.07 609252306.29 328755158.68 316915066.15 Hot-rolled steel 32656675023.85 31556962852.17 34463621265.61 33359519916.74 Cold-rolled steel 6711738.11 7607903.91 203480591.93 217202667.76 Other steels 475941630.20 451788610.13 462567910.36 449699055.11 Sub-total 33767239846.23 32625611672.50 35458424926.58 34343336705.76 198Beijing Shougang Co. Ltd. Annual Report 2025 Other businesses: Power 874256899.35 992214196.28 820478942.33 884858525.93 Solid waste 103539976.38 98691271.89 110936675.91 104550430.32 Others 386293377.36 231119334.78 413742334.36 235172147.83 Sub-total 1364090253.09 1322024802.95 1345157952.60 1224581104.08 Total 35131330099.32 33947636475.45 36803582879.18 35567917809.84 (2) Revenue and cost of sales by timing of goods transfer Item Amount incurred in current year Amount incurred in prior year Revenue from main business 33767239846.23 35458424926.58 Including: Recognised at a certain point in time 33767239846.23 35458424926.58 Recognised during a certain period of time Revenue from other business 1364090253.09 1345157952.60 Total 35131330099.32 36803582879.18 5. Investment gain Unit: RMB Yuan Item Amount incurred in current period Amount incurred in prior period Long-term equity investment income accounted for using the cost method 229421128.19 371614710.67 Long-term equity investment income measured under equity method 61323660.44 -271292907.49 Dividend from other equity instruments investments 16737360.00 7928839.58 Dividend from other non-current financial assets 651975.26 Others 29152.50 Total 308134123.89 108279795.26 XX. Supplementary information 1. Non-recurring gains or losses □Applicable □Non-applicable Unit: RMB Yuan Item Amount Note Gains or losses on disposal of non-current assets -102355801.08 Government grant included in the current profit and loss (except for the government grant which are closely related to the business of the company and are in accordance with the national unified standard 109865980.75 quota) Reversal of impairment provisions for accounts receivable subject to separate impairment testing 2352368.89 Current net profit and loss of subsidiaries from the beginning of the period to the date of business combination under the common 8027162.83 control Profit and loss from debt reorganization 384337.24 Other non-operating income and expenses except the above items -6625899.35 Less: The impact of income tax 5532744.99 The impact on non-controlling interests (post-tax) 2418725.97 Total 3696678.32 -- Particulars about other items that meet the definition of exceptional gain/loss: □ Applicable□ Non-applicable During the reporting period there is no other item that meet the definition of exceptional gain/loss.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: 199Beijing Shougang Co. Ltd. Annual Report 2025 □ Applicable□ Non-applicable 2. Return on net assets and earnings per share Profit of reporting period Weighted average Earnings per share return on net assets Basic earnings per share Diluted earnings per share Net profit attributable to ordinary shareholders of the Company 1.99% 0.1284 0.1284 Net profit attributable to ordinary shareholders of the Company excluding non-recurring gains or 1.98% 0.1279 0.1279 losses 3. Difference of accounting data under accounting rules in and out of China (1) Differences of net profit and net assets in financial statements disclosed according to International Financial Reporting Standards and Chinese Accounting Standards □ Applicable□ Non-applicable (2) Difference of net profit and net assets in financial statements disclosed according to foreign accounting standards and Chinese Accounting Standards □ Applicable□ Non-applicable (3) Explanation of the reasons for accounting data differences under domestic and foreign accounting standards. For data that has been adjusted for differences after being audited by a foreign audit institution the name of the foreign institution should be specified.□ Applicable□ Non-applicable 4. Others None Board of Directors of Beijing Shougang Co. Ltd. 16 April 2026 200