December 29, 2015 Shagang Group annual liaison conference of supplier was held in Shagang Hotel. 166 local supplier delegates from all over the country enjoyed happy get-together to communicate the enhancement on cooperation and overcome the severe challenges.

Director Mr. Gong sheng, Mr. Shen Bin, Mr. Chen Xiaodong and Mr. Shi Yixin attended the conference. Mr. Shen Wenming chaired the conference.

In the opening remarks, Mr. Shen Bin expressed the most heartfelt thanks for the concern and support from the suppliers and friends in all fields. He said it has special significance to convoke the annual conference under such a rapidly changing economic situation. The modern enterprise competition is the competition of enterprise ecosystem. Do as an important part for the supplier plays in the enterprise ecosystem; it has played an important role on the enterprise good operation. Shagang and all suppliers have striven by hand-in-hand and improved together for many years, also overcome different challenges and established strategic cooperative relations. In the coming New Year, Shagang will keep and deepen the fulfillment on the concept “Sincere cooperation, Hand in hand forward”, mutual build up the platform to manage the “New normal”, compete in the market and achieve the partnership and win-win effects!

Mr. Gong Sheng gave an important speech. He briefly introduced the Shagang's business and activities in 2015. He said, since 2015, Shagang always be oriented by and fulfill the philosophy of “Quality, Efficiency and Profit”; carried out the guideline “Reducing cost, saving expense, stressing innovation, exploring potential and increasing efficiency” to consolidate the quality, improve the prime product proportion and develop new grade. Strive to make breakthrough on the “Reducing cost, Saving expense”. Under the concern and support from the supplier as well as the joint efforts of all staffs, Shagang maintained a sound momentum of development, the output of steelmaking go to 31.40 million tons and sales income 205.80 billion RMB with 4.70 billion tax contribution and profits 1.9 billion RMB, all this indexes ranked the second place in the industry; local largest export 6.70 million tons from headquarter; the highest output per man of 1230 tons; the debt ratio and cost per ton steel both decreased 4% and 16%.

Gong said, 2016 is the beginning of the “Hard Winter” for metal industry, also the year of reshuffle for the metallurgical enterprises and those upstream and downstream enterprises. Integrity and quality are the basis of cooperation to overcome the new situation and new conditions; Shagang is and will always be the prior user and help suppliers seek and put forward new purchasing model reformation, realize the breakthroughs on "Contract system and Zero inventory", strategic deep cooperation on the manufactures direct supply of commodities and cost performance. Synchronously, we will consistently stick on our conception of "Integrity management, Justice and equity" and cooperate with the suppliers who can.

Mr. Luo Zhikai （Chairman Assistant of Limited Company and Director of Supply & Procurement Department） made 2015 annual report and procurement planning 2016. At the meeting, award the outstanding suppliers in 2015, five representatives from Shagang Qixin Refractory Co., Ltd and Fujian Mingxin Rubber and Plastic Co., Ltd etc. made communication speeches.