Maanshan Iron & Steel : 2021 Annual Report

Contents

Section I	Definitions ...........................................................	2
Section II	Company Introduction and Major Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . .	4
Section III	ReportoftheBoard ....................................................	9
Section IV	Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	51
Section V	Environmental and Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	90
Section VI	Significant Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	98
Section VII	Movements in Share Capital and Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	115
121

Section VIII Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Documents available for inspection

Financial statements signed and sealed by the Company's legal representative, chief accountant and head of Accounting Department. Original copy of the audit report, sealed by Ernst & Young Hua Ming LLP and signed and sealed by Ms. Guo Jing and Mr. Gong Wei, certified public accountants in the PRC. Original copies of all documents and announcements of the Company disclosed in Shanghai Securities. Annual report announced on the website of the Hong Kong Stock Exchange. The Articles of Association of the Company.

IMPORTANT NOTICE

• I. The board of directors (the "Board"), the supervisory committee, the directors, the supervisors and senior management of the Company warrant that there are no false representations or misleading statements contained in, or material omissions from this annual report; and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this annual report.

• II. All directors attended the board meeting.

• III. Ernst & Young Hua Ming LLP issued a standard unqualified audit opinion on the annual financial statements of the Company.

• IV. Mr. Ding Yi, representative of the Company, Mr. Mao Zhanhong, person overseeing the accounting operations, and Mr. Xing Qunli, head of Accounting Department, made representations in respect of the truthfulness, accuracy and completeness of the financial statements contained in the annual report.

• V. Profit distribution plan or plan for the capitalisation of capital reserve during the Reporting Period proposed by the Board

  The Board suggests 2021 final dividend of RMB0.35 per share (tax included) shall be distributed and retained earnings will be carried forward to the year of 2022. No capital reserve shall be transferred to share capital. The distribution plan is going to be submitted to the Annual General Meeting for approval.

• VI. Risk relating to forward-looking statements

  The report analyses major risks faced by the Company. Please refer to "(5) Potential risks" of "VII. Discussion and Analysis on the Future Development of the Company" of "Report of the Board" in Section III for details. Forward-looking statements such as development strategy, future business plans contained in this report do not constitute any substantive commitments to investors by the Company. Investors should be aware of the relevant risks.

• VII. During the Reporting Period, no appropriation of fund on a non-operating basis by the controlling shareholder or its related parties was found in the Company

• VIII. During the Reporting Period, there is no violation of regulations, decisions or procedures in relation to provisions of external guarantees

• IX. During the Reporting Period, the majority of the Directors cannot warrant the authenticity, accuracy and completeness of the information contained in the annual report does not exist.

• X. Significant risk warning

  The Company has no significant risk that needs to draw special attention of investors.

• XI. Other

  This report is prepared in both Chinese and English. In the event of any discrepancy between the Chinese and English versions, please subject to Chinese text.

Section IDefinitions

In this report, unless the context otherwise requires, the following terms have the following meanings:

DEFINITIONS OF COMMON TERMS

"Company" or	means	Maanshan Iron & Steel Company Limited
"the Company" or
"Magang Stock"
The Group	means	the Company and its subsidiaries
China Baowu or Baowu	means	China Baowu Steel Group Corporation Limited, the controlling
shareholder of the Holding
Baosteel Hong Kong	means	Baosteel Hong Kong Investment Company Limited, a wholly-owned
Investment	subsidiary of China Baowu
The Holding	means	Magang (Group) Holding Co., Limited and the direct controlling
shareholder of the Company
The General Meeting	means	the Shareholders' General Meeting of the Company
The Board	means	the board of directors of the Company
Directors	means	the Directors of the Company
Supervisory Committee	means	the supervisory committee of the Company
Supervisors	means	the supervisors of the Company
Senior Management	means	the senior management of the Company
Hong Kong Stock	means	the Stock Exchange of Hong Kong Limited
Exchange
SSE	means	the Shanghai Stock Exchange
A Shares	means	a nominal value of RMB1.00 per share, which are listed on the SSE
H Shares	means	a nominal value of RMB1.00 per share, which are listed on the Hong
Kong Stock Exchange
PRC	means	the People's Republic of China
Hong Kong	means	the Hong Kong Special Administrative Region

Maanshan Iron & Steel Company Limited 2021 Annual Report

Section IDefinitions (Continued)

RMB	means
CSRC	means	the China Securities Regulatory Commission
CISA	means	China Iron and Steel Association
the Articles of	means	The articles of association of Maanshan Iron and Steel Company
Association	Limited
Changjiang Steel	means	Anhui Changjiang Steel Co., Ltd., a controlling subsidiary of the
Company
Ma Steel (Hefei)	means	Ma Steel (Hefei) Iron & Steel Co., Ltd., a controlling subsidiary of the
Company
Magang Finance	means	Magang Group Finance Co. Ltd., a controlling subsidiary of the
Company
Magang Transportation	means	Baowu Group Magang Rail Transportation Material Technology Co.,
Material	Ltd., a wholly-owned subsidiary of the Holding
MG-VALDUNES	means	MG-VALDUNES S.A.S, a wholly-owned subsidiary of the Company
Ma Steel (Hong Kong)	means	Ma Steel (Hong Kong) Co., Ltd., a wholly-owned subsidiary of the
Company
Environmental Protection	means	Anhui Magang Chemical & Energy Technology Co., Ltd., a
Company	controlling subsidiary of Baowu Water Technology Co., Ltd.
Ouyeel Blockchain	means	Formerly known as Maanshan Magang Scrap Steel Co., Ltd.,
Finance	renamed as Ouyeel Blockchain Finance and Metal Recycling
Resources Co., Ltd. in 2020, a controlling subsidiary of the Holding
Magang K. Wah	means	Anhui Magang K. Wah New Building Materials Co. Ltd., a controlling
subsidiary of the Holding
Magang Chemicals &	means	Anhui Magang Chemical & Energy Technology Co., Ltd., a
Energy	controlling subsidiary of the Holding
Magang Investment	means	Magang Group Investment Ltd., a wholly-owned subsidiary of the
Holding
Jinma Energy	means	Henan Jinma Energy Co. Ltd., a joint venture of the Company
Auditor, Ernst & Young	means	Ernst & Young Hua Ming LLP
Reporting Period	means	From 1 January 2021 to 31 December 2021

Renminbi Yuan

Section II Company Introduction and Major Financial Indicators

1.
2.
3.	BASIC INFORMATION
Registered address	No. 8 Jiu Hua Xi Road, Maanshan City, Anhui Province, the PRC
Historical changes of the	January 1993 to June 2009, No. 8 Hong Qi Zhong Road,
Company's registered address	Maanshan City, Anhui Province;
June 2009 to now, No. 8 Jiu Hua Xi Road, Maanshan City, Anhui
Province
Office address	No. 8 Jiu Hua Xi Road, Maanshan City, Anhui Province, the PRC
Postal code of the registered	243003
address
The Company's website	www.magang.com.cn(A Share);
www.magang.com.hk(H Share)
Email address	[e-mail]
4.

Secretary of the board of directors,

COMPANY PROFILE
Chinese name of the Company	৵ቧʆ፻᚛ٰ΅Ϟࠢʮ̡
Chinese short name of the Company	৵፻ٰ΅
English name of the Company	Maanshan Iron & Steel Company Limited
English short name of the Company	MAS C.L.
Legal representative of the Company	Ding Yi
CONTACT PERSON

joint company secretary	Joint company secretary
Name	He Hongyun	Rebecca Chiu
Office address	No. 8 Jiu Hua Xi Road, Maanshan City,	Room 1204-06, 12/F,The Hong Kong
Anhui Province, the PRC	Chinese Bank Building,
61 Des Voeux Road Central, Central,
Hong Kong, PRC
Telephone	86-555-2888158/2875251	(852)21552649
Fax	86-555-2887284	(852)21559568
Email address	[e-mail]	[e-mail]

INFORMATION DISCLOSURE AND LOCATION FOR INSPECTION

Name of newspaper and website designated for annual report disclosure

Shanghai Securities NewsStock exchange website designated by CSRC forwww.sse.com.cn; www.hkex.com.hk annual report disclosure

Location for inspection of annual report of the The secretariat office of the Board of Maanshan

Company Iron & Steel Company Limited

Maanshan Iron & Steel Company Limited

2021 Annual Report