Contents I. Definitions ........................................................... 2 II. Company Introduction and Major Financial Indicators .......................... 5 III. Overview of the Company’s Business ...................................... 11 IV. Report of the Board .................................................... 14 V. Significant Events ..................................................... 42 VI. Movements in Share Capital and Shareholders ............................... 68 VII. Directors, Supervisors, Senior Management and Employees ..................... 75 VIII. Corporate Governance ................................................. 83 IX. Financial Report ...................................................... 102 X. Document Available for Inspection ........................................ 348 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. Wang Qiangmin, 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 capitalization of capital reserve during the reporting period proposed by the Board The Board suggests 2019 final dividend of RMB0.08 per share (tax included) shall be distributed and retained earnings will be carried forward to the year of 2020. 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 analyzes major risks faced by the Company. Please refer to “(4) Potential risks” of “II. Outlook for Future Development” of “Report of the Board” in Section IV for details. Forward- looking statements such as future 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. Significant risk warning The Company has no significant risk that needs to draw special attention of investors. X. Others 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. Maanshan Iron & Steel Company Limited 1 2019 Annual Report I. Definitions In this report, unless the context otherwise requires, the following terms have the following meanings: DEFINITIONS OF COMMON TERMS “Company” or “the Company” means Maanshan Iron & Steel Company Limited or “Magang Stock” The Group means the Company and its subsidiaries The Holding means Magang (Group) Holding Co., Limited The General Meeting means the Shareholders’ General Meeting of the Company The Board means the board of directors of the Company SASAC of the State Council means State-owned Assets Supervision and Administration Commission of the State Council SASAC of Anhui means State-owned Assets Supervision and Administration Commission of the People’s Government of Anhui Province. China Baowu means China Baowu Steel Group Corporation Limited, the controlling shareholder of the Holding and the indirect controlling shareholder of the Company Baosteel Hong Kong means Baosteel Hong Kong Investment Company Limited, a wholly- Investment owned subsidiary of China Baowu 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 Exchange means the Stock Exchange of Hong Kong Limited 2 Maanshan Iron & Steel Company Limited 2019 Annual Report I. Definitions (Continued) SSE means the Shanghai Stock Exchange A Shares means the ordinary shares in the share capital of the Company with a nominal value of RMB1.00 per share, which are listed on the SSE, and subscribed for and traded in RMB H Shares means the foreign shares in the share capital of the Company with a nominal value of RMB1.00 per share, which are listed on the Hong Kong Stock Exchange, and subscribed for and traded in Hong Kong dollars SD&C Shanghai Branch means Shanghai Branch of China Securities Depository and Clearing Corporation Limited PRC means the People’s Republic of China Hong Kong means the Hong Kong Special Administrative Region RMB means Renminbi Yuan CSRC means the China Securities Regulatory Commission MIIT means the Ministry of Industry and Information Technology of the People’s Republic of China CISA means China Iron and Steel Association CRCC means China Railway Test & Certification Center the Articles of Association means The articles of association of Maanshan Iron and Steel Company Limited 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 Maanshan Iron & Steel Company Limited 3 2019 Annual Report I. Definitions (Continued) Ma Steel Hefei means Ma Steel (Hefei) Iron & Steel Co., Ltd., a controlling subsidiary of the Company Changjiang Steel means Anhui Changjiang Steel Co., Ltd., a controlling subsidiary of the Company MaSteel Finance means Magang Group Finance Co. Ltd., a controlling subsidiary of the Company Environmental Protection means Anhui Xinchuang Energy Saving and Environmental Protection Company Technology Company Limited, a controlling subsidiary of the Holding and a joint venture of the Company Masteel Scrap, Ouye Lianjin means Maanshan Masteel Scrap Steel Co., Ltd., renamed as Ouye Lianjin Renewable Resources Co., Ltd. on 19 February 2020, a controlling subsidiary of the Holding and a joint venture of the Company MaSteel K. Wah means Anhui Masteel K. Wah New Building Materials Co. Ltd., a controlling subsidiary of the Holding and a joint venture of the Company Magang Chemicals & means Anhui Magang Chemical & Energy Technology Co., Ltd., a Energy controlling subsidiary of the Holding and a joint venture of the Company Jinma Energy means Henan Jinma Energy Co. Ltd., a joint venture of the Company Magang Investment means Magang Group Investment Ltd., a wholly-owned subsidiary of the Holding Auditor, Ernst & Young means Ernst & Young Hua Ming LLP Reporting Period means From 1 January 2019 to 31 December 2019 4 Maanshan Iron & Steel Company Limited 2019 Annual Report II. Company Introduction and Major Financial Indicators 1. COMPANY PROFILE Chinese name of the Company 馬鞍山鋼鐵股份有限公司 Chinese short name of the Company 馬鋼股份 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 2. CONTACT PERSON Secretary of the board of directors, 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) 2155 2649 Fax 86-555-2887284 (852) 2155 9568 Email address [email protected] [email protected] 3. BASIC INFORMATION Registered address No. 8 Jiu Hua Xi Road, Maanshan City, Anhui Province, the PRC Postal code of the registered address 243003 Office address No. 8 Jiu Hua Xi Road, Maanshan City, Anhui Province, the PRC Postal code of the office address 243003 The Company’s website http://www.magang.com.cn (A Shares); http://www.magang.com.hk (H Shares) Email address [email protected] Maanshan Iron & Steel Company Limited 5 2019 Annual Report II. Company Introduction and Major Financial Indicators (Continued) 4. INFORMATION DISCLOSURE AND LOCATION FOR INSPECTION Name of newspaper designated for information Shanghai Securities News disclosure Internet website designated by CSRC for annual www.sse.com.cn report publication Location for inspection of annual report of the The secretariat office of the Board of Maanshan Company Iron & Steel Company Limited 5. BRIEF INFORMATION ON THE SHARES OF THE COMPANY Stock exchange for Type of shares listing of shares Short name of stock Stock code A Shares The Shanghai Stock Exchange Magang Stock 600808 The Stock Exchange of Maanshan H Shares Hong Kong Limited Iron & Steel 00323 The address of the H share registrar of the Company is Room 1712-1716, Level 17, Hopewell Centre, 183 Queen’s Road East, Wan chai, Hong Kong. 6. OTHER RELATED INFORMATION Accounting firm Name Ernst & Young Hua Ming LLP engaged by the Office address Level 16, Ernst Young Tower, Oriental Plaza, Company No.1 East Chang An Avenue, Beijing, China Names of the auditors An Xiuyan, Gong Wei who signed