Company China Industrial Steel Inc.

China Industrial Steel Inc. (CIS) is a holding company. The Company, through its wholly owned subsidiary, Nuosen (Handan) Trading Co. Ltd (Nuosen), and its variable interest entity (VIE) Handan Hongri Metallurgy Co., Ltd. (Hongri Metallurgy), produces and sells steel plate, steel bar, steel wire and steel billet. Steel plate, steel wire and steel bar are primarily used in the construction of buildings and in infrastructure projects, including roads and bridges. The Company also manufactures and sells steel billet, a semi-finished product, which is utilized as a raw material by other manufacturers. CIS also sells some of the byproducts of its production process, including offcuts of steel plate and steel drop. In total, the Company has an aggregate capacity of 2.3 million metric tons of steel and 2.6 million metric tons of steel rolling production capacity, including steel plate and steel wire/bar.