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Baoshan Iron Steel Co Ltd Increasing Soft Power Advancing

Baoshan Iron &nter and steel industry overcapacity, Baosteel people work hard and gain hard-won achievements which fully demonstrate their wisdom and strength.The calendar turns a new page and we enter the year 2013 with full confidence. On behalf of Baosteel Group Co., Ltd., I would like to express my heartfelt thanks and sincere greetings to all Baosteel staff, retired veteran comrades, your milies, and all who care about and support Baosteel development. I wish you Happy New Year, good health and a happy life!

In last year we strive in difficulty and make progress while maintaining stability. In continued deterioration of iron and steel industry operating environment, with good operating performance and community reputation, Baosteel continues to maintain the industrys best status. In 2012, Baosteel ranks 197 in Fortune 500, which is the highest continuous ranking on the list for nine consecutive years and is re-elected Chinas Most Admired Company. Three rating agencies Standard & Poors, Moodys and Fitch give Baosteel global steel industry highest credit rating. For third consecutive years Baosteel wins the highest government award in the field of charity - China Charity Award.

Last year is full of change and breakthrough. We make significant progress in iron and steel industrial upgrading and restructuring. Shaoshan Steel formally enters Baosteel mily. Zhanjiang Steel project starts construction. Shanghai regional steel industry restructuring work also starts. Stainless steel system integrated planning and special steel competitiveness improvement work are progressing gradually. We make new breakthrough in technological innovation system. Baosteel Group Central Research Institute is established. Low temperature and high magnetic induction oriented silicon steel manucturing technology development and industrialization wins Metallurgical Science and Technology Grand Prize, Two-piece can tinplate development and application wins National Science and Technology Progress 2nd Award. We make important progress in advanced high-strength steel development and nuclear power 690U-shaped pipe production.We also achieve basic success in hard skill and management enhancement and pilot tenure system. The asset operational efficiency continues to improve and environmental management deepens. We further the emulation activities and strengthen the building of Party branches. We strengthen corporate culture and brand building, optimize staff professional development environment and promote the mutual development of employees and enterprise.

2013 is the first year of comprehensive implementation of the 18th Party Congress spirit and an important year for laying the foundation of full well-off society construction. It is also the first year of Baosteel 2013-2018 planning implementation and critical year for Baosteel second pioneering.Chinas economy gradually enters into medium-speed growth stage and global steel industry development is in downturn. Thus, towards future, we should strengthen our confidence, fully grasp the opportunity, calmly deal with challenges, steadily accelerate second pioneering pace, gain the initiative and advantages so as to achieve greater development.

With 18th Party Congress spirit as guide, we should fully implement strategic transformation, promote a new round of development planning and implementation.During the period of new round of planning, Baosteel will adhere to the vision of steel technology leader, green industry chain driver, employees and business mutual development model company, build the worlds most competitive steel enterprise and strive to become a socially respected and outstanding enterprise in the world which is honest, loving and creative. We achieve the transformation and upgrading relying on scientific and technological innovation, management innovation and business model innovation. We should implement from steel to material, from manucturing to service and from China to the world strategic transformation.

We should follow the guide of 18th Party Congress spirit, further promoting key works. Shanghai regional steel industry restructuring is an important issue in Baosteel second pioneering. In accordance with the principle of capacity reduction, efficiency enhancement, adjustment and development, we should actively promote main steel industry Wusong regional adjustment and asset optimization configuration. We should have a firm grip on Zhanjiang Steel construction and win the second pioneering main campaign. We should accelerate multi-industry market, pay attention to the development of new industries and achieve healthy Group industrial collaborative development. We should refine the task of environmental management and implement environmental management strategy.

With 18th Party Congress spirit as guide, we should deepen reform, improve efficiency and implement staff and enterprise mutual development. W should make efforts to promote the three custom reform, implement the volatile cadre appointment and dismissal, volatile payment and employee appointment and dismissal mechanism. We must make efforts to improve staff efficiency soft power and make Baosteel an outstanding employer which can attract talents, retain talents and stimulate talent and vitality. We should enhance scientific development and safe development awareness and earnestly safeguard employees rights. We should make efforts to improve work style, deepen ties with the masses and resolutely remove formalism and activities that do not create value. We should adhere to PDCA+serious method and attitude and devote our limited time and energy to solving site and market difficulties.

We find that the strength from the grassroots and staff is highlighted in times of difficulty and test.Baoshan Iron Steel Co Ltd Increasing Soft Power Advancing Second Pioneering and, With such strength, we can survive winters and weather storms.Looking to the future, we see serious challenge and greater opportunities for development. Empty talk destroys the country, hard working makes it prosperous. Let us inherit and carry forward the spirit of 85.9 , turn every experience into a valuable asset to promote growth, combine passion and pragmatic style, plunge into Baosteels new round of planning implementation, promote second pioneering and scientific development, be better and stronger and evoke Baosteels charm in this era!