[semi-annual report] net profit of Shagang shares increased by 242% in the first half of the year compared with the same period last year

SMM News: Shagang shares (002075) disclosed semi-annual report. In the first half of 2018, the company achieved operating income of 7.23 billion yuan, up 18.41 percent from the same period last year; net profit attributable to shareholders of listed companies was 647 million yuan, up 242.33 percent from the same period last year; and basic earnings per share was 0.2932 yuan per share. The company intends to pay a cash dividend of 2206771772 yuan (including tax) to all shareholders for every 10 shares.

1. the profit distribution plan, in view of the company's current sustained and sound profitability and good financial situation, in order to fully consider the interests and reasonable demands of the vast number of investors, In accordance with the relevant provisions of the guidelines for the Supervision of listed companies No. 3, the Company Law and the Company Chapter, and on the premise of complying with the principle of profit distribution and ensuring the normal operation and long-term development of the company, The company's board of directors has proposed a half-year profit distribution for 2018. From January to June 2018, the parent company of Shagang realized a net profit of 784894311.46 yuan, mainly due to the receipt of a dividend of 710988994.62 yuan from Jiangsu Shagang Group Huaigang Special Steel Co., Ltd., a controlling company. Together with the undistributed profit of-521913977.87 yuan (historical legacy loss) at the beginning of the year, the undistributed profit as of June 30, 2018 was 262980333.59 yuan, and the profit available for distribution after drawing 10 per cent of the statutory surplus provident fund of 26298033.36 yuan was 236682300.23 yuan. In accordance with the relevant provisions of the Company Law and the articles of Association, it is proposed to distribute the half-yearly profits of the company in 2018, as follows: based on the total share capital of 2206771772 shares as at June 30, 2018, A cash dividend of RMB0.30 (including tax) shall be distributed to all shareholders at the rate of RMB 0.30 per 10 shares, with a total cash dividend of RMB 66203153.16; No red shares will be sent this time, nor will the capital provident fund be used to increase the share capital, and the remaining undistributed profits will be carried forward to the next year.

2. the decision-making process of the current profit distribution plan 1. the board of directors deliberated and passed the "motion on the company's semi-annual profit distribution plan for 2018" by 7 votes to none, with no abstentions. And agreed to submit the bill to the company's first interim shareholders' meeting in 2018.

2. the Board of Supervisors deliberated and passed the "motion on the company's semi-annual profit distribution plan for 2018" by 5 votes to none, with no abstentions. It is considered that the profit distribution scheme strictly follows the relevant profit distribution regulations of the state and the requirements of the articles of association of the company, and accords with the actual situation of the operation of the company. 3. the plan for the distribution of profits for 2018 drawn up by the board of directors of the company conforms to the objective situation of the company, as well as to the relevant laws and regulations of the state and the provisions of the articles of association of the company. There is no harm to the interests of shareholders, especially minority shareholders. The independent directors agreed to the company's semi-annual profit distribution plan for 2018 and agreed to submit the bill to the company's first interim shareholders' meeting in 2018. Prior to the announcement of the profit distribution plan, the company strictly controlled the scope of insider information, and fulfilled the obligation of confidentiality and strict prohibition of insider trading to the insider information informant. 2. 2. the profit distribution plan will not be implemented until it is submitted to the first interim shareholders' meeting of the company in 2018 for deliberation and approval, and the majority of investors are kindly requested to pay attention to the investment risk. 4. documents for reference 1. resolutions of the eighth meeting of the sixth session of the Board of Directors; 2. resolutions of the eighth meeting of the sixth session of the Board of Supervisors; 3. independent opinions of independent directors on matters related to the eighth meeting of the sixth session of the Board of Directors.

I hereby announce.

Board of Directors of Jiangsu Shagang Co., Ltd.

8 August 2018