Group Introduction

Rizhao Steel Holding Group Co., Ltd. (hereinafter referred to as "Rizhao Steel Group") was established in 2003. By 2008, it had reached a crude steel production capacity of 10 million tons, and in 2019, the output value exceeded 100 billion yuan. Currently, it possesses a steelmaking capacity of 18.95 million tons, which is an important production base for high-quality thin and wide strip steel. Rizhao Steel Group serves as the chairman unit of Shandong Iron and Steel Industry Association and the leading enterprise in steel industry chain in Shandong Province. The main products include Thin Gauge Hot Rolled Coil, Hot Rolled Coil, Cold-formed Coil, PO Coil, Galvanized Steel Coil, and High-strength H-beam, etc.

In recent years, guided by the vision of "building the world's most competitive specialized flat steel products manufacturing base", Rizhao Steel Group has adhered to the mission of "promoting industry development, creating customer value, and fulfilling social responsibility." It has sticked to the core leading role of technological innovation, continuously promoted the transition from old to new drivers of growth and digital and intelligent transformation. Through a focus on high-end, intelligent, and green initiatives, the company has laid a solid foundation for nurturing and developing new productive forces. During the "13th Five-Year Plan" period, Rizhao Steel Group achieved a cumulative steel production of 70.45 million tons, with operating revenue reaching 354.6 billion yuan, net profit of 35.5 billion yuan, and tax contributions of 32.1 billion yuan (including customs duties of 12.1 billion yuan). For eight consecutive years, it has consistently ranked among the top-tier nationally competitive iron and steel enterprises, winning honorary titles such as the national-level Green Factory, the 2023 China Excellent Steel Enterprise Brand, the Shandong Province New Leapfrog Private Enterprise, the Shandong Province Manufacturing High-end Brand Cultivation Enterprise, the First Batch of Shandong Province Manufacturing Pilot Cultivation Enterprises, the Leading Enterprise in the "Top Ten" Industrial Cluster in Shandong Province, the New Materials Leading Enterprise in Shandong Province, and the Advanced Collective for Innovation in Shandong Province.

High-end. Rizhao Steel Group has invested over 50 billion yuan in industrial upgrading and transformation, establishing 5 internationally advanced ESP production lines and 9 supporting pickling, galvanizing, and leveling production lines. It has become the world's largest ESP production base. The "ESP Technology Integration Innovation and Application" scientific achievements have reached international leading levels, with multiple indicators such as ESP thin-gauge rolling holding world records. The production of ESP specialty products exceeds 10% of the total steel production of the entire province, and its market share in weather-resistant steel for containers ranks the first. The group has actively undertaken 9.62 million tons of excess urban steel production capacity, constructing three 3000 cubic meter blast furnaces, three 300-ton converters, and supporting auxiliary facilities. This has resulted in a 60% reduction in land use and over 60% reduction in pollution, while reducing energy consumption by more than 25%. It focuses on the development of green products such as "hot replacing cold" series steels and high-strength, thinning automotive steels. The group is accelerating the promotion of "larger capacity, newer equipment, and higheroutput" for restricted equipment, vigorously promoting large-scale equipment renewal, and forming a smelting equipment system with 3000 cubic meter blast furnaces and 300-ton converters as the main body. The goal is to achieve complete large-scale, modern, and intelligent equipment, with main processes and technologies reaching international advanced levels.

Intelligentization. We have accelerated the promotion of intelligent and digital transformation in the industry, and have established an integrated information management system that covers procurement, sales, production, finance, logistics control, human resources, engineering projects, and collaborative office, etc. We have obtained 13 core software and hardware technology patents and developed and integrated more than 30 industrial apps,realized the automatic control of the whole process, improved flexible manufacturing levels, and achieved 100% accuracy in full-order tracking. The five ESP production lines have been transformed into "digital workshops" and "smart factories." Each production line is equipped with over 1,500 data collection sensors and detection instruments, enabling 100% automatic data collection. We have applied advanced technologies such as artificial intelligence, machine vision, and big data algorithms to accelerate the construction of the industry's largest 20 million-ton full-process intelligent manufacturing demonstration factory. After completion, the entire process will achieve "equipment automation, business informatization, service networking, and intelligent operation."

Greenization. With the goal of creating an environmentally-friendly grade A enterprise, we have invested a total of 5.8 billion yuan in recent years and implemented 268 ultra-low emission retrofit projects. We have also invested 80 million yuan to replace 160 vehicles with China's sixth emission standard vehicles, as well as over 100 million yuan to purchase 110 new energy vehicles and supporting power stations, resulting in a clean transportation ratio of 82%. We have increased the green area by 450,000 square meters, achieving a green coverage rate of 17.5%. Additionally, we have hardened an area of 170,000 square meters and beautified an area of 6.6 million square meters. Currently, we have successfully completed the organized and disorganized emission control processes, as well as the clean transportation emission acceptance and publicity by the China Iron and Steel Association, and have been recognized as an A-grade enterprise in terms of environmental performance, and the total emissions of major pollutants and the emissions of tons of steel in 2023 are reduced by over 60% compared with 2018 .

Shared Development. Adhering to the development ideology centered around the people and the concept of shared development, we are committed to being practitioners of public welfare and charity in the new era. Currently, our total donations have exceeded 1 billion yuan. In 2020, we established the Rizhao Steel Charity Foundation, with accumulated donations nearly 200 million yuan. We have been honored with accolades such as theChina Children's Charity Award, the China Charity Award, Advanced Private Enterprise of All-China Federation of Industry and Commerce in Fighting COVID-19, and the Advanced Collective in the Fight Against COVID-19 in Shandong Province.

With innovation and determination, Rizhao Steel Group is embarking on a new journey. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We are committed to fully, accurately and comprehensively implementing the new development concept, reinforcing the "chain-master" mindset, the "ecological" mindset, and the "intelligent" mindset. We will strengthen technological innovation, explore and research advanced green and low-carbon technologies, accelerate the cultivation of new productive forces, and promote high-quality development to reach new heights. Our aim is to build a world-class steel enterprise.