Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Stock Code: 0347) 2026 INTERIM RESULTS ANNOUNCEMENT FINANCIAL HIGHLIGHTS • Operating income amounted to RMB45,907 million • Total profit amounted to RMB-1,924 million • Net profit attributable to shareholders of the Company amounted to RMB-2,047 million • Basic earnings per share amounted to RMB-0.218 (January to June 2025: Adjusted basic earnings per share of RMB-0.119) • The financial information contained in this announcement was prepared in accordance with the China Accounting Standards for Business Enterprises The board of directors of the Company announces the unaudited results of the Company and its subsidiaries for the six months ended 30 June 2026 together with the comparative figures as stated herein.
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– 2 – DEFINITIONS: In this announcement, the following expressions shall have the following meanings unless the context indicates otherwise: Term Meaning “Company” or “Angang Steel” Angang Steel Company Limited (ࠢ ʮ̡ ) “Group” Angang Steel Company Limited and its subsidiaries “Angang Holding” Anshan Iron & Steel Co., Ltd. ( ቧʆ፻᚛ණྠ ʮ̡ ), the controlling shareholder of the Company “Anshan Iron & Steel Group” Angang Holding and the companies in which it holds 30% or above interests (excluding the Group) “Angang” Angang Group Company Limited ( ቧ፻ණྠϞ ʮ̡ ), the de facto controller of the Company “Angang Group” Angang and the companies in which it holds 30% or above interests (excluding the Group) “Angang Financial Company” Angang Group Financial Company Limited ( ቧ፻ பʮ̡ ) “Framework Agreement for Mutual Supply of Commodities (2025–2027)” the Framework Agreement for Mutual Supply of Commodities (2025–2027) entered into between the Company and Angang, which was approved at the first extraordinary general meeting of the Company in 2024 on 30 December 2024 “Framework Agreement for Mutual Supply of Services (2025–2027)” the Framework Agreement for Mutual Supply of Services (2025–2027) entered into between the Company and Angang, which was approved at the first extraordinary general meeting of the Company in 2024 on 30 December 2024 “Financial Service Agreement (2025–2027)” the Financial Service Agreement (2025–2027) entered into between the Company and Angang Financial Company, which was approved at the first extraordinary general meeting of the Company in 2024 on 30 December 2024
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– 3 – “Industrial Financial Services Framework Agreement (2025– 2027)” the Industrial Financial Services Framework Agreement (2025–2027) entered into between the Company and Angang Group Capital Holdings Co., Ltd., which was approved at the first extraordinary general meeting of the Company in 2024 on 30 December 2024 “Continuing Connected Transaction Framework Agreements” collectively, the Framework Agreement for Mutual Supply of Commodities (2025–2027), the Framework Agreement for Mutual Supply of Services (2025–2027), the Financial Service Agreement (2025–2027) and the Industrial Financial Services Framework Agreement (2025– 2027) “Anshan Base” the Anshan production base of Angang Steel Company Limited. “Bayuquan Branch Company” Bayuquan Iron & Steel Branch Company of Angang Steel (΅㑘ਸ਼፻᚛ʱʮ̡ ) “Chaoyang Iron and Steel” Angang Group Chaoyang Iron and Steel Co., Ltd. (ʮ̡ ) “Yingkou Port” Angang Yingkou Port Co., Ltd. “Angang International Trade” Angang Group International Economic and Trade Co., Ltd. (ʮ̡ ) “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Hong Kong Stock Exchange Listing Rules” The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
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– 4 – I. PRINCIPAL ACCOUNTING FIGURES AND FINANCIAL INDICATORS OF THE GROUP Whether the Group needs to retroactively adjust or restate the accounting data for previous year ✓ Yes No Reason for retroactive adjustment: Business combination under common control Unit: RMB million Items During the Reporting Period (from January to June) Corresponding period of the previous year Increase/ decrease for the Reporting Period as compared with the corresponding period of the previous year (after adjustment)(%) Before adjustment After adjustment Operating income 45,907 48,599 48,618 -5.58 Net profit attributable to the shareholders of the Company -2,047 -1,144 -1,115 -83.59 Net profit attributable to the shareholders of the Company after extraordinary items -2,166 -1,231 -1,231 -75.95 Net cash flow from operating activities 1,672 405 386 333.16 Basic earnings per share (RMB/ share) -0.218 -0.122 -0.119 -83.19 Diluted earnings per share (RMB/share) -0.218 -0.122 -0.119 -83.19 Returns on net assets on weighted average basis (%) -4.69 -2.43 -2.33 Decreased by 2.36 percentage points
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– 5 – Items As at the end of the Reporting Period As at the end of the previous year Increase/ decrease for the end of Reporting Period as compared with the end of the previous year (After adjustment)(%) Before adjustment After adjustment Total assets 97,367 96,047 97,065 0.31 Owner’s equity attributable to shareholders of the Company 41,636 43,880 44,661 -6.77 Note: Pursuant to the approval at the sixth meeting of the tenth session of the Board of Directors of the Company held on 30 March 2026, the Company entered into the Equity Transfer Agreement with Anshan Iron and Steel on 30 March 2026, pursuant to which the Company acquired 80% equity interest in Yingkou Port held by Anshan Iron and Steel, and Yingkou Port became a controlled subsidiary of the Company. During the Reporting Period, the Company has completed the capital contribution and, in accordance with the principles of business combination under common control, the accounting data for the corresponding period of the previous year have been retrospectively adjusted.
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– 6 – Non-Recurring Gains or Losses Items Unit: RMB million Items Amount 1. Gains/losses from disposal or retirement of non-current assets -16 2. Government grant recorded in to profit/loss for current period except that relevant to enterprise operation, in compliance with government policies, entitled for standard amount or quantities and continuously impacts the gains/losses of the Company 67 3. Changes in fair value of financial assets held for trading -5 4. Changes in fair value of other non-current financial assets 21 5. Gains or losses arising from disposal of other non-current financial assets 63 6. Net profit or loss of subsidiaries arising from business combinations under common control from the beginning of the period to the date of combination 16 7. Other non-operating revenue and expenses except those mentioned above 6 Subtotal 152 Less: Effect on income tax 22 Effect on minority shareholders (after tax) 11 Total 119
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– 7 – Particulars of other gains or losses items within the definition of extraordinary gains or losses: Applicable ✓ Not Applicable No particulars of other gains or losses items within the definition of extraordinary gains or losses applied to the Group. Notes on the extraordinary gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No. 1 – Extraordinary Gains or Losses defined as recurring gain or loss items: Applicable ✓ Not Applicable No extraordinary gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No. 1 –Extraordinary Gains or Losses were defined by the Group as its recurring gain or loss items. II. REPORT OF THE BOARD OF DIRECTORS (I) Overview In the first half of the year, the Company thoroughly implemented the spirit of the important speech delivered by General Secretary Xi Jinping during his inspection at Liaoning and Bensteel Group Corporation Limited, adhered to the principles of prioritizing stability and efficiency, and effectively prevented various risks by strengthening system coordination, refining cost reduction and potential tapping, deepening product mix optimization and efficiency enhancement, and reinforcing fund control and other measures. The production and operation remained generally stable and orderly, and continuous new progress was made in various work. The Company was recognized by the Ministry of Industry and Information Technology as a “leading standard-compliant enterprise” in the national steel industry, being the only long-process steel enterprise in Liaoning Province to receive this title.
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– 8 – 1. Centralized and intensive control of production operations. The Group reasonably managed the production pace in light of market conditions, optimized resource allocation, adopted intensive production scheduling, enhanced efficiency and controlled production output. The production volumes of iron, steel and steel products were 11.2722 million tons, 12.1372 million tons and 11.5295 million tons, respectively, representing year-on-year decreases of 7.33%, 5.11% and 4.20%, respectively. Steel product sales volume was 11.4591 million tons, representing a year-on-year decrease of 4.68%, and the steel product production-sales ratio reached 99.39%. 2. Cost reduction efforts were precise and effective. First, significant results were achieved in enhancing the efficiency and quality of logistics. The Group deepened the coordination among “ports, roads and enterprises” and carried out targeted initiatives to “improve the operation” of the logistics system. Logistics costs at the Anshan headquarters, Bayuquan Branch and Chaoyang Steel decreased by 3.9%, 11.3% and 5.8% year on year, respectively, representing a substantial improvement in logistics efficiency. Second, procurement costs were effectively controlled. The purchase prices of pulverized coal injection and imported iron ore fines both outperformed the market benchmark. The Group accelerated the domestic substitution of imported spare parts, achieving notable cost reduction results in categories such as bearings, instruments and filter elements. Third, the cost of externally purchased energy per tonne of steel decreased by 29% year on year, reaching the best level in history. The self-generated power ratio increased by 4.04 percentage points year on year, and the comprehensive energy consumption per tonne of steel decreased by 10kg year on year, marking a historic breakthrough. 3. Product operations continued to improve. First, the Group adhered to a benefit-oriented approach, continuously deepened product mix optimization and efficiency enhancement, with the sales proportion of high-end products increasing by 9.3 percentage points year-on-year. Second, sales of steel for major projects increased by 44.59% year-on-year, and the Group successfully won bids for major projects including the State Grid Daya River Pumped Storage Power Station Project (˥ႅঐཥ१ධͦ ), Dalian Jinzhou Bay International Airport (ψᝄყዚఙ ), and the renovation and upgrade project of old equipment at Sinopec Qilu Petrochemical ( ʕͩʷᄁኁͩʷϼᔚண௪ҷிʺॴධ ͦ ). Third, the Group strengthened contract execution, with the full life-cycle contract execution rate improving by 0.61 percentage point year-on-year.
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– 9 – 4. Reform and innovation have been accelerated. First, the Group deepened internal institutional reforms by establishing an integrated operation team for the ironmaking front-end system and a dedicated team for integrated silicon steel management and control, implementing integrated and coordinated management to further enhance cost reduction effectiveness in the ironmaking front-end system and improve the quality of silicon steel products. Second, technological innovation has achieved remarkable results, with significant progress made in three national major science and technology projects that we led, two products achieving global first launches, and the “Jinsuo Ju (॰ၳ )” brand steel wire rope successfully applied in the traction of the feed cabin of China’s Five-hundred-meter Aperture Spherical Radio Telescope (“FAST ( ʕ˂ )”). Third, digital and intelligent transformation has been steadily advanced, with deepened application of AI technologies and the launch of 55 intelligent agents; innovative BI+AI analytical tools have been introduced to enhance the efficiency of addressing procurement and sales issues; the Company has been selected as a benchmark enterprise for intelligent transformation and digital upgrading in Liaoning Province in 2026. 5. Effective prevention and control of various risks. First, the Group deepened the three-year action plan for addressing root causes and achieving fundamental improvement, improved the safety responsibility supervision system, standardized the management of relevant parties, and continued to carry out investigation and rectification of hidden dangers, so as to continuously enhance the intrinsic safety level. Second, the Group strengthened environmental protection management across the entire system, and the Anshan headquarters was successfully upgraded to an A-level enterprise in terms of environmental protection performance. Third, the Group strengthened the control over fund operations, continued to reduce the occupation of “two funds (ږ ,”) improved operational efficiency, continuously expanded financing channels such as bonds and letter of credit forfaiting, increased the depth of financial institution credit resources, and ensured the stable and safe operation of capital flows.
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– 10 – (II) Analysis of Principal Businesses In the first half of the year, the Group achieved operating income of RMB45,907 million, representing a decrease of 5.58% over the corresponding period of the previous year. The total profit reached RMB-1,924 million, representing a decrease of 88.63% over the corresponding period of the previous year. The net profit attributable to shareholders of the Company was RMB-2,047 million, representing a decrease of 83.59% over the corresponding period of the previous year. The basic earnings per share were RMB-0.218 per share, representing a decrease of 83.19% over the corresponding period of the previous year. 1. Year- on- year changes in principal financial data Unit: RMB million Item The Reporting Period Corresponding period of the previous year Year-on-year increase/ decrease Reasons for the changes (%) Operating income 45,907 48,618 -5.58 – Operating costs 46,733 48,247 -3.14 – Marketing expenses 214 242 -11.57 – Administrative expenses 491 486 1.03 – Financial expenses 235 163 44.17 Finance costs increased by RMB72 million year-on-year. The primary reasons are: first, by expanding the scale of letter of credit forfaiting business, procurement costs were further reduced, and the related interest expenses were recognized in full at the time of occurrence, contributing to the increase in finance expenses; second, to supplement cash flow, the scale of interest-bearing liabilities increased, which also affected the increase. Income tax expenses 55 57 -3.51 –
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– 11 – Item The Reporting Period Corresponding period of the previous year Year-on-year increase/ decrease Reasons for the changes (%) R&D expenditure 222 259 -14.29 – Total profit Net profit attributable to the shareholders of the Company -1,924 -2,047 -1,020 -1,115 -88.63 -83.59 In the first half of 2026, the steel industry experienced oversupply, a weak cycle and low prosperity, with steel prices remaining persistently depressed. Coupled with the high prices of raw fuels such as iron ore and coking coal, the price spread between procurement and sales continued to narrow. Net cash flow from operating activities 1,672 386 333.16 Net cash flow from operating activities increased by RMB1,286 million year-on-year. The primary reason is that the Company fully utilized its bill resources to expand its letter of credit forfaiting business, thereby reducing monetary capital expenditures. Meanwhile, affected by factors such as procurement pace and payment terms, net cash flow from operating activities increased year-on-year.
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– 12 – Item The Reporting Period Corresponding period of the previous year Year-on-year increase/ decrease Reasons for the changes (%) Net cash flow from investing activities -2,459 -1,929 -27.48 – Net cash flow from financing activities 1,993 121 1,547.11 Net cash flow from financing activities increased by RMB1,872 million year-on-year. The increase was primarily attributable to the expansion of financing scale for the acquisition of Yingkou Port, payment of construction costs and replenishment of working capital. Net increase in cash and cash equivalents 1,206 -1,422 184.81 Net increase in cash and cash equivalents increased by RMB2,628 million as compared to the corresponding period of the previous year, mainly due to (i) the increase of RMB1,286 million in the net cash flow from operating activities as compared to the corresponding period of the previous year; (ii) decrease of RMB530 million in the net cash flow from investing activities as compared to the corresponding period of the previous year; (iii) increase of RMB1,872 million in the net cash flow from financing activities as compared to the corresponding period of the previous year. 2. Significant change in profit composition or source of profit of the Group during the Reporting Period Applicable ✓ Not applicable
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– 13 – 3. Composition of operating income Unit: RMB million Item The Reporting Period Corresponding period of the previous year Year-on- year increase/ decreaseAmount As a percentage of the operating income Amount As a percentage of the operating income (%) (%) (%) Total operating income 45,907 100 48,618 100 -5.58 By industry Steel pressing and processing industry 45,843 99.86 48,410 99.57 -5.30 Others 64 0.14 208 0.43 -69.23 By product Steel products 40,458 88.13 43,189 88.83 -6.32 Others 5,449 11.87 5,429 11.17 0.37 By geographical location Domestic China 43,370 94.47 45,177 92.92 -4.00 Export sales 2,537 5.53 3,441 7.08 -26.27 Industries, products and geographical locations accounting for more than 10% of the operating income or operating profit of the Group ✓ Applicable Not Applicable
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– 14 – Unit: RMB million Item Operating income Operating costs Gross profit margin Increase/ decrease in operating income as compared with the corresponding period of the previous year Increase/ decrease in operating costs as compared with the corresponding period of the previous year Increase/ decrease in gross profit margin as compared with the corresponding period of the previous year (%) (%) (%) (percentage point) By industry Steel pressing and processing industry 45,843 46,684 -1.83 -5.30 -2.86 -2.55 By product Hot-rolled sheets products 14,032 14,506 -3.38 -6.98 -5.71 -1.40 Cold-rolled sheets products 15,409 15,907 -3.23 -6.43 -0.72 -5.94 Medium-thick plates 8,376 8,401 -0.30 -1.56 4.70 -6.00 By geographical location Domestic China 43,306 43,843 -1.24 -3.70 -1.44 -2.32 Export sales 2,537 2,841 -11.98 -26.27 -20.60 -8.00 In case of adjustment in statistical calibres of principal businesses of the Group during the Reporting Period, the principal business data of the Group in the latest period according to adjusted calibres at the end of the Reporting Period Applicable ✓ Not applicable
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– 15 – 4. Liquidity and financial resources (1) Loan and credit As at 30 June 2026, the Group’s total loans amounted to RMB13,712 million with average interest rate of 2.19% per annum and a term of one to nine years. The loans are mainly used for replenishing the working capital and payment of construction payable. All bank loans of the Group are at fixed interest rates or LPR floating interest rates. In 2026, with good credibility, the Group was reviewed and rated by the rating committee of China Chengxin International Credit Rating Co., Ltd. (பʮ̡ ) with a credit rating of “AAA”. With ample credit resources available from over ten financial institutions and unimpeded financing channels, and approved but not yet expired short-term financing quota, ultra-short-term financing quota and medium-term notes in the interbank market, the Group is capable of repaying its debts when they become due. (2) Capital commitment As at 30 June 2026, the Group had a total capital commitment of RMB642 million, which was primarily the construction and renovation contracts of RMB628 million entered into but not yet performed or partially performed and foreign investment contracts of RMB14 million entered into but not yet performed or partially performed. 5. Foreign exchange risk The Group carries out import and export through agent trade by Angang International Trade for its main foreign currency transactions, including the export of sales products, import of raw materials for production and engineering equipment. Foreign exchange risk is mainly reflected in the impact of exchange rate changes when settling through agent on sales revenue and procurement costs.
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– 16 – (III) Analysis of Non-Principal Businesses Unit: RMB million Items Amount As a percentage of total profit Reasons Sustainable or not (%) Investment income 233 N/A Mainly included investment income from long-term equity investments accounted for using equity method, investment income from other equity instrument investments during the holding period, and investment income from the disposal of other non-current financial assets. Yes Gains or losses arising from changes in fair value 39 N/A Included changes in fair value of derivative financial instruments, changes in fair value of other non-current financial assets, and changes in fair value of trading financial assets. Yes Asset impairment loss (“-” for loss) -219 N/A Included accrual of provision for impairment on inventories. No Credit impairment loss (“-” for loss) 2 N/A Included reversal of impairment provision for other receivables. No Other gains 452 N/A Included gains on government grants and preferential tax policy. No Non-operating income 8 N/A Mainly included gains from destruction or scrapping of non-current assets and compensation income from contract breaches. No Non-operating expenses 18 N/A Mainly included scrapping of non-current assets. No
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– 17 – (IV) Assets and Liabilities 1. Significant changes in composition of assets Unit: RMB million As at the end of the Reporting Period As at the end of the previous year Increase/ decrease Explanation for significant changesAmount As a percentage of total assets Amount As a percentage of total assets (%) (%) (percentage point) Monetary capital 5,175 5.31 3,936 4.06 1.25 – Accounts receivables 3,809 3.91 3,084 3.18 0.73 – Inventories 10,928 11.22 11,995 12.36 -1.14 – Long-term equity investments 4,015 4.12 4,211 4.34 -0.22 – Fixed assets 54,693 56.17 55,615 57.30 -1.13 – Construction in progress 2,118 2.18 2,373 2.44 -0.26 – Right-of-use assets 1,588 1.63 105 0.11 1.52 – Short-term loans 6,259 6.43 8,070 8.31 -1.88 – Contract liabilities 4,356 4.47 4,739 4.88 -0.41 – Long-term loans 6,423 6.60 6,121 6.31 0.29 – Lease liabilities 1,350 1.39 36 0.04 1.35 – 2. Information on main overseas assets Applicable ✓ Not Applicable
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– 18 – 3. Assets and liabilities measured at fair value ✓ Applicable Not Applicable Unit: RMB million Item Opening balance Gains or losses on fair value change for the current period Accumulative changes in fair value included in equity Impairment provision made for the period Purchase amount for the current period Disposal amount for the current period Other changes Closing balance Financial assets 1. Financial assets held for trading (excluding derivative financial assets) 20 -5 – – – – – 15 2. Derivative financial assets 4 -2 – – – – – 2 3. Other debt investment – – – – – – – – 4. Other equity instrument investments 675 – 233 – – – – 671 5. Other non-current financial assets 142 21 – – – 126 – 100 Sub-total of financial assets 841 14 233 – – 126 – 788 Investment properties – – – – – – – – Productive biological assets – – – – – – – – Others – – – – – – – – Total 841 14 233 – – 126 – 788 Financial liabilities 1 4 – – – – – 5 Material changes in measurement of the Group’s major assets during the Reporting Period Yes ✓ No
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– 19 – 4. Gearing ratio As at 30 June 2026 and 31 December 2025, the Group’s equity-to-debt ratio was 0.79 times and 0.90 times, respectively. 5. Restrictions on assets as at the end of the Reporting Period As at June 30, 2026, the Group’s restricted assets amounted to RMB42 million in aggregate, consisting of RMB3 million of bill guarantee deposits presented under cash and cash equivalents and RMB39 million of futures margin deposits. 6. Contingent liabilities As at 30 June 2026, the Group had no contingent liabilities. (V) Work Plan for the Second Half of 2026 In the face of difficulties and challenges, the Company will firmly implement the work plan of “pooling efforts to tackle five key priorities, and striving to achieve a new start in strategy, management, and Party building.” We will maintain our strategic resolve, withstand external pressures, focus on improving quality, efficiency, and stable growth, and make every effort to accomplish the full year’s production and operational targets. 1. Focus on “Ultimate Cost Control” to safeguard the bottom line of survival. 2. Focus on “Lean Management” to rebuild an efficient operating system. 3. Focus on “Value Creation” to enhance competitive advantages. 4. Focus on “Reform and Innovation” to unleash internal drivers of growth. 5. Focus on “Risk Prevention and Control” to solidify the foundation for development. 6. Focus on “Strict Party Discipline” to strengthen safeguarding capabilities.
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– 20 – (VI) Analysis of Investments 1. Overview ✓ Applicable Not Applicable Unit: RMB million External investments Investments for the Reporting Period Investments for the corresponding period of the previous year Change 1,029 271 279.70% 2. Significant equity investments made during the Reporting Period Applicable ✓ Not Applicable 3. Significant non-equity investments being conducted during the Reporting Period Applicable ✓ Not Applicable
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– 21 – 4. Financial asset investments (1) Securities investments Unit: RMB million Stock type Stock code Stock abbreviation Initial investment Accounting measurements Book value at the beginning of the period Gains or losses on fair value change for the current period Accumulative changes in fair value included in equity Purchase amount for the current period Disposal amount for the current period Loss or gain during the Reporting Period Book value at the end of the period Accounting item Source of funds Shares 600961 Zhuye Group (зණྠ ) 81 Measured at fair value 74 21 – – 126 84 32 Financial asset held for trading Self-owned funds Shares 601777 Qianli Technology (Ҧ ) 17 Measured at fair value 20 -5 – – – -5 15 Financial asset held for trading Self-owned funds (2) Derivatives investments 1) Derivatives investments for hedging purposes during the Reporting Period ✓ Applicable Not Applicable
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– 22 – Unit: RMB million Type of derivatives investment Initial investment amount Amount at the beginning of the period Gains or losses on fair value change for the current period Accumulative changes in fair value included in equity Purchase amount during the Reporting Period Disposal amount during the Reporting Period Amount at the end of the period Proportion of investments at the end of the period to net assets of the Company at the end of the Reporting Period Futures hedging 1 102 23 – 653 421 309 0.72% Total 1 102 23 – 653 421 309 0.72% Explanation as to whether there has been a material change in the accounting policy and specific accounting and auditing principles for the hedging business during the Reporting Period as compared to last reporting period No significant changes. Explanation of actual profit or loss during the Reporting Period All financial derivatives business undertaken by the Company was conducted based on the principle o f hedging. Every derivatives operation was linked t o corresponding p h y s i c a l - commodity business. Under the futures-spot linkage principle, losses and gains from financial derivatives could be effectively hedged against p r o f i t s and losses in physical-commodity operations. Explanation of hedging effectiveness All commodity financial derivatives trading is conducted to lock in risks associated with actual operations, mitigating price-volatility risks of relevant raw materials or commodities. The overall hedging effect has proven effective. Source of funds for derivatives investments Self-owned funds
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– 23 – Risk analysis of positions in derivatives during the Reporting Period and explanations of risk control measures (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) The Company’s engagement in futures hedging business enables partial mitigation of commodity price volatility risks, thereby contributing to stabilising normal production and operations. However, due to the inherent financial characteristics of hedging instruments, certain additional risks may also be entailed, including market risk, liquidity risk, credit risk, operational risk, and legal risk. The Company will rigorously enforce the principle of hedging for non-speculative purposes and take the initiative to implement measures across organisational structure, policies and procedures, and risk controls to effectively prevent, identify, and mitigate risks: 1. The Company has developed and continuously improved the Management Measures for the Hedging Business of Angang Steel Company Limited, and has established a robust management organisational structure for commodity financial derivatives to ensure that the entire business process is standardised and rigorous, the segregation between execution and supervisory functions is strictly implemented, and operations proceed in an orderly manner. 2. The position held by the Company is related to the steel industry, which is highly relevant to spot commodity operated by the Company. Although the Company makes regular analysis and forecast on the market, the judgment on the market may be deviated, resulting in potential risk. However, the risk is controllable after futures hedging with spot commodities. 3. As the category of position held has sufficient liquidity, there is no liquidity risk. 4. The futures exchange provides credit guarantee for the category of position held, thus the credit risk minimal.
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– 24 – 5 . The Company continues to strengthen training for relevant personnel, designing specific operational procedures and plans f o r futures trading, and constantly improving the professional competence of the relevant staff. 6. The Company has performed evaluation of relevant legal risks. Business development is carried out in accordance with the laws and regulations of futures exchanges in the PRC, and thus, risks can be controlled. Changes in the market price or product fair value of derivatives invested during the Reporting Period, where specific methods and relevant assumptions and parameters used shall be disclosed in the analysis of derivatives’ fair value During the Reporting Period, the fair value of derivatives was calculated based on market prices, the futures-spot price difference, and valuation reports provided by trading institutions. Litigation case (if applicable) N/A Date of the announcement disclosing the approval of derivatives investment by the Board (if any) On 3 February 2026, the Resolution in relation to the Company ’s 2026 Annual Hedging Business Amount was approved at the 5th meeting of the tenth session of the Board. Date of the announcement disclosing the approval of derivatives investment at shareholders’ meeting (if any) N/A
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– 25 – 2) Derivatives investments for speculative purposes during the Reporting Period Applicable ✓ Not Applicable 5. Use of proceeds Applicable ✓ Not Applicable There was no use of proceeds of the Company during the Reporting Period. (VII) Disposal of Major Assets and Equity Interests 1. Disposal of major assets Applicable ✓ Not Applicable 2. Disposal of major equity interests Applicable ✓ Not Applicable
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– 26 – (VIII) Analysis of Major holdings and Investees Major subsidiaries and investees accounting for over 10% of the net profit of the Company: Unit: RMB million Name of companies Type of companies Principal activities Registered capital Total assets Net assets Operating income Operating profit Net profit Chaoyang Iron and Steel Manufacturing enterprise Steel pressing and processing 8,000 5,457 3,021 3,737 -218 -218 Acquisition and disposal of subsidiaries during the Reporting Period: ✓ Applicable Not applicable Name of companies Acquisitions and disposals of subsidiaries during the reporting period Impact on overall operations and performance Anjin Automotive Components (Hefei) Co., Ltd. Newly established Not significant Yingkou Port Combination under common control Not significant Ningbo Anshan Iron and Steel International Trade Co., Ltd. Cancelled Not significant (IX) Structured Entities Controlled by the Company Applicable ✓ Not Applicable (X) Purchase, Sale or Redemption of Listed Shares of the Company There was no purchase, sale or redemption by the Company or any of its subsidiaries of any securities of the Company during the Reporting Period.
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– 27 – (XI) Securities Transactions by Directors The Board has adopted the relevant code for directors’ securities transactions for the purpose of complying with the Hong Kong Stock Exchange Listing Rules. In response to the Company’s specific inquiries with all Directors, the Directors have confirmed that they have complied with the standards set out in Appendix C3 to the Listing Rules. The Company has also adopted a code of conduct governing securities transactions by the employees of the Company who may possess or have access to price sensitive information in relation to the Company or its securities. (XII) Independent Non-Executive Directors Throughout the Reporting Period, the Board had been in compliance with Rule 3.10 (1) of the Hong Kong Stock Exchange Listing Rules, which requires a company to maintain at least three independent Non-executive Directors, and with Rule 3.10 (2) of the Hong Kong Stock Exchange Listing Rules, which requires one of the independent non-executive Directors to possess professional qualifications or accounting or related financial management expertise. (XIII) Audit Committee The Company has established an audit and risk committee (the “Audit and risk Committee”) in compliance with Rule 3.21 of the Hong Kong Stock Exchange Listing Rules. The Audit Committee and management have reviewed the accounting standards, principles, and measurements adopted by the Company, and considered issues in relation to the auditing, internal control and the unaudited interim financial report for the six months ended 30 June 2026.
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– 28 – III. EXPLANATION OF SIGNIFICANT MATTERS (I) Profit Distribution and Transfer of Reserve to Share Capital During the Reporting Period The Company proposed not to distribute cash dividends, issue bonus shares or transfer reserve to share capital for the Reporting Period. (II) Information on the Non-Operating Use of Funds of the Company by the Controlling Shareholder and Other Related Parties During the Reporting Period, neither the controlling shareholder nor the other connected parties of the Company used the capital of the Company for non-operating purposes. (III) Major Connected Transactions The connected transactions set out below fall within the definition relating to “Connected Transaction” or “Continuing Connected Transaction” under Chapter 14A of the Hong Kong Stock Exchange Listing Rules. Relevant connected transactions have complied with the disclosure requirements under Chapter 14A of the Hong Kong Stock Exchange Listing Rules. 1. Connected transactions related to daily operations Connected party Related relationship Type of connected transaction Content of connected transaction Pricing principle of connected transaction Connected transaction price Connected transaction amount As a percentage of the amount of similar transactions Approved transaction cap Whether exceeding approved cap Settlement method of connected transactions Market price of available similar transactions (RMB million) (%) (RMB million) Ansteel Group Mining Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 7,019 11.78 52,662 No In cash – Angang Green Gold Industry Development Co., Ltd. Associate of controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 1,806 3.03 In cash – Delin Lugang Supply Chain Service Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 702 1.18 In cash –
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– 29 – Connected party Related relationship Type of connected transaction Content of connected transaction Pricing principle of connected transaction Connected transaction price Connected transaction amount As a percentage of the amount of similar transactions Approved transaction cap Whether exceeding approved cap Settlement method of connected transactions Market price of available similar transactions (RMB million) (%) (RMB million) Anshan Iron and Steel Group Refractory Materials Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 403 0.68 In cash – Anshan Iron and Steel Metallurgical Furnace Materials Technology Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 398 0.67 In cash – Bensteel Group Corporation Limited Controlled by the same controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 308 0.52 In cash – Shanxi Wuchan International Energy Co., Ltd. Associate of controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 285 0.48 In cash – Angang Group Zhongyuan Industry Development Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 256 0.43 In cash – Other subsidiaries of Angang Group Controlled by the same controlling shareholder Purchase goods/ Receive services Purchase goods Market principle – 653 1.09 In cash – Subtotal – – Purchase goods – – 11,830 19.86 – –
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– 30 – Connected party Related relationship Type of connected transaction Content of connected transaction Pricing principle of connected transaction Connected transaction price Connected transaction amount As a percentage of the amount of similar transactions Approved transaction cap Whether exceeding approved cap Settlement method of connected transactions Market price of available similar transactions (RMB million) (%) (RMB million) Delin Lugang Supply Chain Service Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Receive services Market principle – 1,200 17.66 12,349 No In cash – Angang Group Engineering Technology Development Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Receive services Market principle – 402 5.92 In cash – Ansteel Group Controlling shareholder Purchase goods/ Receive services Receive services Market principle – 331 4.87 In cash – Angang Group Engineering Technology Co., Ltd. Associate of controlling shareholder Purchase goods/ Receive services Receive services Market principle – 313 4.61 In cash – Angang Group Zhongyuan Industry Development Co., Ltd. Controlled by the same controlling shareholder Purchase goods/ Receive services Receive services Market principle – 229 3.37 In cash – Other subsidiaries of Angang Group Controlled by the same controlling shareholder Purchase goods/ Receive services Receive services Market principle – 802 11.80 In cash – Subtotal – – Receive services – – 3,277 48.23 – –
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– 31 – Connected party Related relationship Type of connected transaction Content of connected transaction Pricing principle of connected transaction Connected transaction price Connected transaction amount As a percentage of the amount of similar transactions Approved transaction cap Whether exceeding approved cap Settlement method of connected transactions Market price of available similar transactions (RMB million) (%) (RMB million) Delin Lugang Supply Chain Service Co., Ltd. Controlled by the same controlling shareholder Sales of goods/ Provision of services Sales of goods Market principle – 2,165 3.05 28,756 No In cash – Angang International Trade Controlled by the same controlling shareholder Sales of goods/ Provision of services Sales of goods Market principle – 1,204 1.70 In cash – Angang Cold Rolled Steel Plate (Putian) Co., Ltd. Controlled by the same controlling shareholder Sales of goods/ Provision of services Sales of goods Market principle – 678 0.95 In cash – Ling Steel Group Controlled by the same controlling shareholder Sales of goods/ Provision of services Sales of goods Market principle – 464 0.65 In cash – Other subsidiaries of Angang Group Controlled by the same controlling shareholder Sales of goods/ Provision of services Sales of goods Market principle – 559 0.79 In cash – Subtotal – – Sales of goods – – 5,070 7.14 – –
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– 32 – Connected party Related relationship Type of connected transaction Content of connected transaction Pricing principle of connected transaction Connected transaction price Connected transaction amount As a percentage of the amount of similar transactions Approved transaction cap Whether exceeding approved cap Settlement method of connected transactions Market price of available similar transactions (RMB million) (%) (RMB million) Angang Group Controlled by the same controlling shareholder Sales of goods/ Provision of services Provision of services Market principle – 231 17.32 567 No In cash – Subtotal – – Provision of services – – 231 17.32 – – Angang Financial Company Controlled by the same controlling shareholder Receive finance services Settle fund and deposit interests Market principle – 12 70.59 100 No In cash – Angang Financial Company Controlled by the same controlling shareholder Receive finance services Maximum daily deposit balance Market principle – 4,922 – 5,000 No – – Angang Financial Company Controlled by the same controlling shareholder Receive finance services Credit business interest Market principle – 4 2.34 250 No In cash – Angang Financial Company Controlled by the same controlling shareholder Receive finance services Entrusted loans interest Market principle – – – 100 No In cash – Angang Group Capital Holding Co., Ltd. Controlled by the same controlling shareholder Receive finance services Commercial factoring Market principle – – – 1,000 No In cash – Angang Group Capital Holding Co., Ltd. Controlled by the same controlling shareholder Receive finance services Commercial factoring interest Market principle – – – 50 No In cash –
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– 33 – Connected party Related relationship Type of connected transaction Content of connected transaction Pricing principle of connected transaction Connected transaction price Connected transaction amount As a percentage of the amount of similar transactions Approved transaction cap Whether exceeding approved cap Settlement method of connected transactions Market price of available similar transactions (RMB million) (%) (RMB million) Angang Group Capital Holding Co., Ltd. Controlled by the same controlling shareholder Receive finance services Daily maximum balance of accounts receivable factoring provided to the company’s suppliers Market principle – 25 - 3,000 No – – Angang Group Capital Holding Co., Ltd. Controlled by the same controlling shareholder Receive finance services Daily maximum balance of financial leasing Market principle – – – 3,000 No – – Particulars on refund of bulk sale – Estimated total amount for continuing connected transactions to be conducted during the period and their actual implementing during the Reporting Period During the Reporting Period, the total amount of the Group’s daily connected transactions did not exceed the relevant caps applicable to such category as set out in the relevant daily connected transaction agreements approved at the general meeting and the estimated amounts of each type of daily connected transactions expected at the beginning of the year. Reason for the large difference between transaction price and market reference price – Relevant explanation on connected transactions As production in the iron and steel industry is on a continuous basis, Angang Group has been engaged in mining, supplying, processing and manufacturing of raw materials, auxiliary materials and energy and power, which is a part of the supply chain of the Group. In the meantime, its subsidiaries have a high technological level and service capabilities, which can provide necessary support services for production and operation of the Group. The Group would sell certain products, abandoned steel, abandoned materials and integrated services to Angang Group which is a client of the Group.
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– 34 – 2. Related party transactions in relation to asset or equity acquisition or disposal ✓ Applicable Not applicable Unit: RMB million Connected party Connected relationship Type of connected transaction Content of connected transaction Pricing principle of connected transaction Carrying amount of assets transferred Assessed value of assets transferred Transfer price Settlement method of related party transactions Profit and loss of the transaction Date of disclosure Disclosure index Ansteel Group the controlling shareholder of the Company Equity acquisition Acquire 80% of the equity interest in Yingkou Port Transaction prices are determined based on valuation 781 1,010 1,024 In cash – 31 March, 2026 Connected transaction in relation to acquisition of equity interest in Angang Yingkou Port Co., Ltd. disclosed in China Securities Journal, Securities Times, Shanghai Securities News and http://www.cninfo.com.cn. Reasons for the substantial difference between the transfer price and the book value or the appraised value The difference of RMB14 million between the transfer value and the appraised value is the profit and loss of the transition period from the valuation base date (31 December 2025) to the date of delivery (30 April 2026). Impact on the operating result and the financial condition of the Company Net profit for the period increased by RMB26 million. If the relevant transaction involves the results agreement, the results during the reporting period are as: Not applicable
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– 35 – 3. Related party transactions in relation to joint external investments Applicable ✓ Not Applicable 4. Related party credit and debt transaction ✓ Applicable Not Applicable Whether there are claims or obligations for non-operating purpose Yes ✓ No There were no claims or obligations for non-operating purpose of the Group during the Reporting Period.
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– 36 – 5. Transaction with related financial company ✓ Applicable Not Applicable Unit: RMB million Deposit business Amount during the period Related party Related relationship Maximum daily deposit limit Range of deposit interest rate Balance as at the beginning of the period Total amount deposited during the period Total amount withdrawn during the period Balance as at the end of the period (%) Angang Financial Company Controlled by the same controlling shareholder 5,000 0.2-1.45 3,493 163,455 162,214 4,734 Loan business Amount during the period Related party Related relationship Loan facility Range of loan interest rate Balance as at the beginning of the period Total loan amount for the period Total amount repaid during the period Balance as at the end of the period (%) Angang Financial Company Controlled by the same controlling shareholder 2,790 2.11 615 – 315 300 Credit extension or other financial business Related party Related relationship Type of business Total amount Actual amount Angang Financial Company Controlled by the same controlling shareholder Credit extension 2,790 228 Note: During the period, the Company conducted bill discounting transactions with Angang Financial Company, with a total discount amount of RMB228 million, utilising RMB228 million of its credit facility. The discounted bills had not yet matured as at the end of the reporting period.
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– 37 – 6. Transaction with connected financial company which is under the control of the Company Applicable ✓ Not applicable 7. Other major connected transactions Applicable ✓ Not Applicable There was no other major connected transaction of the Company during the Reporting Period. (IV) Material Contracts and their Implementation 1. Trust, contractual or lease arrangement (1) Trust arrangement The Company entered into the Entrusted Management Services of Assets and Business Agreement with Angang Holding as the specific agreement for execution under the Continuing Connected Transaction Framework Agreements. Pursuant to the Entrusted Management Services of Asset and Business Agreement, Angang Holding entrusts the Company to conduct daily operation and management of the assets, businesses, additional future assets and businesses of the unlisted units under its control. During the Reporting Period, there weren’t any entrusted projects that resulted in profit or loss of the Group amounting to more than 10% of the Group’s total profit during the Reporting Period. (2) Contractual arrangement Applicable ✓ Not Applicable During the Reporting Period, there did not have any contractual projects that resulted in profit or loss of the Group amounting to more than 10% of the Group’s total profit during the Reporting Period. During the Reporting Period, the Company had no contractual arrangements.
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– 38 – (3) Lease arrangement ✓ Applicable Not Applicable Lease arrangement explanation: During the Reporting Period, the Group leased certain land assets of Angang Holding and its subsidiaries for its production and operation, and paid land leasehold payments of RMB32 million with reference to the market rates. Items that bring profit or loss of more than 10% of the total profit of the Group during the Reporting Period Applicable ✓ Not Applicable During the Reporting Period, there was no lease which generated profit of more than 10% of the gross profit of the Group. 2. Material guarantee Applicable ✓ Not Applicable During the Reporting Period, there was no material guarantee provided by the Group. 3. Entrusted wealth management Applicable ✓ Not Applicable During the Reporting Period, the Group did not have entrusted wealth management.
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– 39 – 4. Other significant contracts Applicable ✓ Not Applicable During the Reporting Period, the Company had no other significant contracts. IV. CORPORATE GOVERNANCE OF THE COMPANY In strict compliance with the requirements of the Company Law, the Securities Law, the relevant requirements of the China Securities Regulatory Commission (the “CSRC”), the Hong Kong Stock Exchange Listing Rules, the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange and the Corporate Governance Guideline of Listed Companies and other requirements, the Company has regulated its operations and established a comprehensive corporate governance system and an effective internal control system. There is no difference between the Company’s corporate governance practise and the Company Law and the relevant requirements of the CSRC. With shares listed in both Hong Kong and Shenzhen, the Company is committed to improving its corporate governance in accordance with international corporate governance standards. The Board and the management understand that they are responsible for establishing good corporate governance practises and procedures and the strict implementation of such practises and procedures, in order to protect the interests of the shareholders and to create return for the shareholders in the long term. The Company has adopted the code provisions set out in Appendix C1 to the Hong Kong Stock Exchange Listing Rules. The Company has periodically reviewed its corporate governance practises. During the six months ended 30 June 2026, save for the following matters, the Company has largely complied with the Corporate Governance Code. Pursuant to the requirement under Rule F.1.3 of Appendix C1 to the Hong Kong Listing Rules, “the chairman of the board should attend the annual general meeting.” Mr. Wang Jun, the chairman of the Company, was unable to attend the 2025 annual general meeting of the Company in person due to other official business, and delegated Mr. Tian Yong, a director of the Company, to attend and chair the 2025 annual general meeting.
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– 40 – V. FINANCIAL INFORMATION CONSOLIDATED BALANCE SHEET As at 30 June, 2026 Prepared by: Angang Steel Company Limited Monetary unit: RMB million Item Notes 30 June 2026 31 December 2025 Cash and cash equivalents 5,175 3,936 Trading financial assets 15 20 Derivative financial assets 2 4 Notes receivable 180 315 Accounts receivable 2 3,809 3,084 Receivables financing 1,625 1,480 Prepayments 2,922 2,482 Other receivables 91 675 Including: Interests receivable Dividends receivable Inventories 10,928 11,995 Other current assets 924 1,111 Total current assets 25,671 25,102
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– 41 – Item Notes 30 June 2026 31 December 2025 Non-current assets: Long-term equity investments 4,015 4,211 Other equity instrument investments 671 675 Other non-current financial assets 100 142 Fixed assets 54,693 55,615 Construction in progress 2,118 2,373 Right-of-use assets 1,588 105 Intangible assets 6,174 6,352 Long-term deferred expenses 56 65 Deferred income tax assets 2,169 2,169 Other non-current assets 112 256 Total non-current assets 71,696 71,963 Total assets 97,367 97,065 Legal representative: Financial controller: Person in charge of accounting department: Wang Jun Li Jingdong Ma Li
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– 42 – Item Notes 30 June 2026 31 December 2025 Current liabilities: Short-term loans 6,259 8,070 Derivative financial liabilities 5 1 Notes payable 19,943 19,318 Accounts payable 3 6,956 5,904 Contract liabilities 4,356 4,739 Staff remuneration payable 189 112 Tax payable 163 151 Other payables 2,712 4,313 Including: Interests payable Dividends payable Non-current liabilities due within 1 year 1,243 619 Other current liabilities 3,159 437 Total current liabilities 44,985 43,664 Non-current liabilities: Long-term loans 6,423 6,121 Bonds payable Lease liability 1,350 36 Long-term payables 321 321 Long-term employee benefits payable 40 40 Deferred income 1,234 924 Deferred income tax liabilities 6 1 Total non-current liabilities 9,374 7,443 Total liabilities 54,359 51,107 Shareholders’ equity:
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– 43 – Item Notes 30 June 2026 31 December 2025 Share capital 9,369 9,369 Capital reserve 33,816 34,839 Less: Treasury shares Other comprehensive income 200 201 Special reserve 133 87 Surplus reserve 4,499 4,499 Retained earnings 4 (6,381) (4,334) Subtotal of Shareholders’ equity attributable to shareholders of parent company 41,636 44,661 Minority interests 1,372 1,297 Total shareholders’ equity 43,008 45,958 Total liabilities and shareholders’ equity 97,367 97,065 Legal representative: Financial controller: Person in charge of accounting department: Wang Jun Li Jingdong Ma Li
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– 44 – CONSOLIDATED INCOME STATEMENT For the six months ended 30 June 2026 Prepared by: Angang Steel Company Limited Monetary unit: RMB million Item Notes January to June 2026 January to June 2025 I. Total operating revenue 45,907 48,618 Including: Operating revenue 5 45,907 48,618 II. Total operating cost 48,328 49,926 Including: Operating cost 5 46,733 48,247 Taxes and surcharges 6 433 529 Selling expenses 214 242 Administrative expenses 491 486 Research and development expenses 222 259 Finance expenses 8 235 163 Including: Interest expenses 248 182 Interest income 20 33 Add: Other incomes 452 146 Investment income (Loss is listed with “-”) 233 218 Including: Investment incomes in associates and joint ventures 205 234 Gain from fair-value changes (Loss is listed with “-”) 39 (12) Credit impairment losses (Loss is listed with “-”) 2 Impairment on assets (Loss is listed with “-”) (219) (81) Gains on disposal of assets (Loss is listed with “-”)
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– 45 – Item Notes January to June 2026 January to June 2025 III. Operating profit (Loss is listed with “-”) (1,914) (1,037) Add: Non-operating income 8 21 Less: Non-operating expenses 18 4 IV. Profit before tax (Loss is listed with “-”) (1,924) (1,020) Less: Income tax expenses 9 55 57 V. Net profit (Loss is listed with “-”) (1,979) (1,077) (I) Classification of business operation 1. Continuous operation profit (Loss is listed with “-”) (1,979) (1,077) 2. Termination of business operating profit (Loss is listed with “-”) (II) Classification of ownership 1. Net income attributable to the Company owners (2,047) (1,115) 2. Net income attributable to minority shareholders 68 38 VI. Other comprehensive income after tax (1) 8 Other comprehensive income after tax attributable to parent company owners (1) 8 (I) Other comprehensive income which cannot be reclassified subsequently to profit or loss (1) 8 1. Net gain on other equity instruments at fair value through other comprehensive income (3) 5 2. The shares of the other comprehensive income which cannot be reclassified in profit or loss of the invested company in equity method 2 3
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– 46 – Item Notes January to June 2026 January to June 2025 (II) Other comprehensive income which will be reclassified subsequently to profit or loss 1. The shares of the other comprehensive income which can be reclassified in profit or loss of the invested company in equity method Other comprehensive income after tax attributable to minority shareholders VII. Total comprehensive income (1,980) (1,069) Total comprehensive income attributed to the Company owners (2,048) (1,107) Total comprehensive income attributable to minority shareholders 68 38 VIII. Earnings per share (I) Basic earnings per share (RMB/share) 10 (0.218) (0.119) (II) Diluted earnings per share (RMB/share) 10 (0.218) (0.119) A business combination under common control took place during the current period. The net profit realised by the combine prior to the combination amounted to RMB16 million, and the corresponding net profit of the combinee for the previous year amounted to RMB36 million. Legal representative: Financial controller: Person in charge of accounting department: Wang Jun Li Jingdong Ma Li
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– 47 – NOTES TO FINANCIAL STATEMENTS for The Period Ended 30 June 2026 (Expressed in million RMB unless otherwise indicated) 1. PREPARATION BASIS OF THE FINANCIAL STATEMENTS The Group has evaluated the continuous operations ability for the 12 months from June 30, 2025, and has not found any matters or circumstances that have significant doubts about the continuous operations ability. Therefore, the financial statements are prepared on the assumption of going concern principle. In addition, the Group has prepared this report based on the actual transactions and events and in accordance with the Basic Standard and 42 specific standards of the Accounting Standards for Business Enterprises (Ministry of Finance issued No. 33, the Ministry of Finance to amend No. 76) issued by the Ministry of Finance on 15 February 2006, and the Application Guidance for Accounting Standards for Business Enterprises, Interpretations of Accounting Standards for Business Enterprises and other relevant regulations issued thereafter (hereafter collectively referred to as the “CAS”) and the disclosure requirements regulation in the Preparation Convention of Information Disclosure of information of public listed companies, No. 15–General Requirements on Financial Reports revised by the China Securities Regulatory Commission 2023, Preparation of applicable disclosure provisions for the Listing Rules. According to the relevant provisions of Accounting Standards, the Group adopted an accrual accounting basis. Except for certain financial instruments, the financial statements are reported at historical cost. If assets are impaired, relevant provisions are made in accordance with relevant standards.
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– 48 – 2. ACCOUNTS RECEIVABLE (1) Classification of accounts receivable 30 June 2026 Item Book Value Bad Debt Provision Net Book Value Amount Percentage Amount Percentage (%) (%) Accounts receivable subject to separate assessment for bad debts provision 107 2.74 87 81.31 20 Account receivable for which bad debt is prepared based on group combination 3,793 97.26 4 0.11 3,789 including: Risk-free group combination 1,685 43.21 1,685 Risk group combination on the basis of aging-matrix 2,108 54.05 4 0.19 2,104 Total 3,900 100.00 91 2.33 3,809 31 December 2025 Item Book Value Bad Debt Provision Net Book Value Amount Percentage Amount Percentage (%) (%) Accounts receivable subject to separate assessment for bad debts provision 107 3.37 87 81.31 20 Account receivable for which bad debt is prepared based on group combination 3,068 96.63 4 0.13 3,064 including: Risk-free group combination 1,187 37.39 1,187 Risk group combination on the basis of aging-matrix 1,881 59.24 4 0.21 1,877 Total 3,175 100.00 91 2.87 3,084
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– 49 – (2) Accounts receivable subject to separate assessment for bad debts provision 31 December 2025 30 June 2026 Debtors Book Value Bad Debt Provision Book Value Bad Debt Provision Percentage Reason (%) Tianjin Property Group Finance Co., Ltd. 20 20 Anshan Zhongyou Tianbao Steel Pipe Co., Ltd. 65 65 65 65 100.00 Business is in trouble. It does not have repayment ability Dongbei Special Steel Group 15 15 15 15 100.00 Estimated uncollectible Shanghai Junshang Supply Chain Management Co., LTD 5 5 5 5 100.00 Business is in trouble. It does not have repayment ability Dalian material trading Co., Ltd. 2 2 2 2 100.00 Bankruptcy of debtor. It does not have repayment ability Total 107 87 107 87 (3) Accounts receivable classified by aging Aging 30 June 2026 31 December 2025 Within 1 year 3,659 3,054 1 to 2 years 132 12 2 to 3 years 5 5 3 to 4 years 4 to 5 years Over 5 years 104 104 Total 3,900 3,175 Note: In the above analysis, based on the invoice date.
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– 50 – (4) Bad debt provision at the end of the period Increase/Decrease Type 31 December 2025 Bad debt provision Reverse Resale or verification Others 30 June 2026 Accounts receivable 91 91 (5) Accounts receivable written off this period There are no accounts receivables that have been written off this period. (6) The condition of accounts receivable of the top five debtors by the balances as of 30 June 2026 The total amount of top five accounts receivable according to closing balance of debtors of the Group was RMB2,519 million as of 30 June 2026, which accounted for 64.59% of the closing balance of the total accounts receivable. The summary closing balance of corresponding bad debt provision amounted to RMB0 million as of 30 June 2026.
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– 51 – 3. ACCOUNTS PAYABLE (1) Aging of accounts payable 30 June 2026 31 December 2025 Items Balance Percentage Balance Percentage (%) (%) Within 1 year 6,874 98.82 5,822 98.61 1 to 2 years 36 0.52 40 0.68 2 to 3 years 13 0.19 9 0.15 Over 3 years 33 0.47 33 0.56 Total 6,956 100.00 5,904 100.00 Note: the above aging analysis is based on the invoice date. (2) Significant account payable aging over 1 year Creditors Balance Aging Angang Construction Group Co., Ltd. 5 1–2 years, 2–3 years, Over 3 years Total 5
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– 52 – 4. RETAINED EARNINGS Items This period Balance as of 31 Dec. 2025 (4,334) Changes in accounting policies Business combination under common control Balance as of 1 Jan. 2026 (4,334) Increase in 2026 (2,047) Including: Net profit transferred this period (2,047) Other adjustment factors Decrease in 2026 Including: Extraction of surplus reserve this period Extraction of general risk provisions in this period Distribution of cash dividend this period Conversed capital Other decreases Balance as of 30 June. 2026 (6,381) 5. OPERATING REVENUE AND OPERATING COST (1) Classified by production This period Last period Items Income Cost Income Cost Prime operating 45,843 46,684 48,410 48,060 Other operating (Note 2) 64 49 208 187 Total 45,907 46,733 48,618 48,247 Note 1: The Group is classified into an operating segment based on the type of business: production and sale of steel products. Note 2: Other business income and other business costs of the Group are mainly generated from the sales of materials and scrap materials.
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– 53 – (2) Classified by region Items This period Last period Foreign transaction income from the within borders 43,370 45,177 Foreign exchange income from outside borders 2,537 3,441 Total 45,907 48,618 (3) Classified by the time when the revenue is confirmed Items This period Last period Confirmed at a certain point 45,907 48,618 Total 45,907 48,618 6. TAXES AND SURCHARGES Items This period Last period Land use tax 221 220 Property tax 94 92 Stamp tax 46 53 Environmental protection tax 22 112 City maintenance and construction tax 17 18 Resources tax 15 15 Educational surcharge and local educational surcharge 13 13 Consumption tax 4 5 Others 1 1 Total 433 529
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– 54 – 7gDEPRECIATION AND AMORTIZATION Items This period Last period Depreciation of fixed assets 1,979 1,916 Amortization of intangible assets 215 225 Depreciation of right-of-use assets 82 32 Amortization of long-term deferred expenses 9 Total 2,285 2,173 8gFINANCIAL EXPENSES Items This period Last period Interest expense 249 185 Less: Interest income 20 33 Less: Capitalized interest expense 1 3 Exchange gain or loss Less: Capitalized exchange gain or loss Others 7 14 Total 235 163 9. INCOME TAX EXPENSES (1) Income tax expenses Items This period Last period Income tax during this period 49 50 Changes on deferred income tax expenses 6 7 Total 55 57
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– 55 – (2) The reconciliation between accounting profit and income tax expenses Items This period Total profit (1,924) Income tax expenses calculated at statutory/applicable tax rates (289) Effect of different tax rates applied by subsidiary companies (13) Effect of current unrecognized deductible temporary difference or deductible loss arising from deferred tax income assets 357 Income tax expenses 55 10. RETURN ON EQUITY (ROE) AND EARNINGS PER SHARE (EPS) EPS (Yuan per share) Profit in this period Weighted average (ROE) Basic EPS Diluted EPS (%) Net profit attributable to ordinary shareholders (4.69) (0.218) (0.218) Net profit (exclusive of non-operating profit) attributable to ordinary shareholders (4.96) (0.231) (0.231) 11. OPERATING SEGMENT The Group is classified into an operating segment based on the type of business: production and sale of steel products.
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– 56 – 12gCOMMITMENTS Items 30 June 2026 31 December 2025 Investment contracts entered but not yet performed or performed partially 14 14 Construction and renovation contracts entered but not yet performed or performed partially 628 1,083 Total 642 1,097 13. SUBSEQUENT EVENTS As of June 30, 2026, there are no post-balance sheet events requiring disclosure for the Group. 14. NET CURRENT ASSETS Items 30 June 2026 31 December 2025 Current assets 25,671 25,102 Lessj Current liabilities 44,985 43,664 Net current assets/(liabilities) (19,314) (18,562)
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– 57 – 15. TOTAL ASSETS LESS CURRENT LIABILITIES Items 30 June 2026 31 December 2025 Total assets 97,367 97,065 Less: Current liabilities 44,985 43,664 Total assets less current liabilities 52,382 53,401 By Order of the Board ANGANG STEEL COMPANY LIMITED* Wang Jun Executive Director and Chairman of the Board Anshan City, Liaoning Province, the PRC 27 August 2026 As at the date of this announcement, the Board comprises of the following directors: Executive Directors: Independent Non-executive Directors: Wang Jun Zhu Keshi Tian Yong Hu Caimei Li Jingdong Liu Chaojian Non-Executive Director: Employee Director: Tan Yuhai Zhao Zhongmin * For identification purpose only