Angang Steel Company Limited provided unaudited earnings guidance for the three months ended March 31, 2023. for the periodcompany expects Net loss attributable to shareholders of the company to be approximately RMB 149 million as compared to Net profit attributable to shareholders of the company of RMB 1,482 million a year ago. Basic loss per share is expected to be approximately RMB 0.016 as compared to basic earnings per share of RMB 0.158 a year ago.

REASONS: In the first quarter of 2023, the downstream demand in China's steel industry recovered slower than expected, steel prices were fluctuating at a low level, but the cost side remained high, the steel industry's business environment was under tremendous pressure and profitability was squeezed. In the face of the extremely severe market situation, the Company actively took countermeasures, formulated good marketing plans, expanded the market share of its fist products, and enhanced its ability to adjust products and create efficiency; sourced extensively, accelerated the promotion of long-term cooperation in sourcing, and enhanced the ability to reduce sourcing and create efficiency; continued to promote innovation and optimization of core product costs, and continued to enhance cost competitiveness. However, mainly due to the significant year-on-year reduction in steel prices, the net profit attributable to shareholders of Company for the first quarter was loss, while the operating results showed a larger year-on-year decrease.