beijing shougang co. ltd annual report 2023 1 beijing shougang company limited 2023 annual report 18 april 2024 beijing shougang co. ltd annual report 2023 2 section i. important notice, content, definitions the board of directors (the “board”), the supervisory committee, all directors, supervisors 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 qiu yinfu, general manager sun maolin, chief accountant liu tonghe, and accounting officer gong juanjuan declare that they guarantee the authenticity, accuracy, and completeness of the financial reports in this year's report. all directors have attended the board meeting to review this report. 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 7,794,611,605, cash dividends of rmb 0.3 (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. beijing shougang co. ltd annual report 2023 3 contents section i. important notice, content, definitions ...................................................................................................................................................... 2 section ii. company profile and major financial indicators ........................................................................................................................... 6 section iii. discussion and analysis of business operations .......................................................................................................................... 8 section iv. corporate governance..................................................................................................................................................................................... 29 section v. environment and social responsibility ................................................................................................................................................ 46 section vi. significant events ............................................................................................................................................................................................... 52 section vii. movements in share capital and shareholders .......................................................................................................................... 59 section viii. preferred shares ............................................................................................................................................................................................. 65 section ix. bonds ........................................................................................................................................................................................................................... 66 section x. financial report ......................................................................................................................................................................................................72 beijing shougang co. ltd annual report 2023 4 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 the company, etc. beijing shougang co. ltd annual report 2023 5 interpretation items refers to contents csrc refers to china securities regulatory commission szse refers to shenzhen stock exchange company, the company/the company or shougang co. refers to beijing shougang company limited shougang or shougang group refers to shougang group (reforming from an enterprise owned by the whole people to exclusively state-owned companies, name of shougang group is changed from shougang corporation. the specific content is detailed in 15 june 2017 public announcement.) 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 company limited board of directors or the board refers to the board of directors of beijing shougang company limited supervisory