Pangang Achieved a "Good Start" in Production and Operation in Q1

Since 2025, Panzhihua Iron and Steel Group Co., Ltd. (hereinafter referred to as "Pangang Group") has embarked on a new journey with high spirits. The cadres and workers have united and exerted their utmost efforts, fully engaging in production work. In Q1, Pangang Group achieved its quarterly targets for operating profits and production of major products, marking a successful start to the year. At the beginning of the new year, Pangang Group systematically deployed its annual work. All units quickly took action, focusing on key tasks, anchoring the 2025 goals, planning implementation roadmaps, and proposing practical new measures. Particularly in strengthening production and operations, Pangang Group researched and formulated work plans and cost optimization schemes for each production line, summarizing and analyzing the operational status of each unit monthly, timely supervising and correcting deviations, striving for ultimate efficiency, cost, and benefits. Pangang Group reinforced the concept of "competition in the market, competitiveness on the ground," strictly adhering to the bottom line of stable production. The Operations Improvement Department and Digitalization Department continuously improved the visualization platform for key operational indicators, enhancing functions such as automatic data collection, achieving interconnected and shared production data, providing accurate data support for quick business decisions and market responses. To ensure the long-term stable operation of blast furnaces, Pangang Group improved equipment risk warning and correction mechanisms, deepened the construction of point inspection and repair systems, continuously tackled equipment issues, and steadily increased the smelting intensity and operational level of blast furnaces. In Q1, Pangang Group achieved its production targets for iron ore concentrates and titanium concentrates, with the 35,000 mt sponge titanium expansion project reaching full production, and the utilization rate of titanium smelting capacity increasing by 6.5 points MoM. Pangang Group's Vanadium Sheet Plant was the first in China to mass-produce 11-aluminum-3-magnesium alloy coated steel sheets for home appliances, with a qualification rate of over 95%. The utilization coefficient of Pangang Group's Vanadium New No. 3 Blast Furnace reached a historical high in February, and the temperature control accuracy of Xichang Steel Vanadium remained stable within ±0.01%, supporting the overfulfillment of production targets for pig iron and crude steel. Good products also require good marketing. Pangang Group strengthened market analysis, conducted in-depth market research, and accurately grasped user needs. By improving market forecasting and response decision-making mechanisms, Pangang Group established highly aligned product marketing plans, maximizing sales of cold-rolled products and increasing sales of automotive steel, home appliance steel, and energy steel. The group also intensified overseas marketing efforts, continuously enhancing product profitability. In Q1, the sales-to-production ratio of sponge titanium, titanium products, and titanium concentrates exceeded 100%, with the sales-to-production ratio of titanium dioxide increasing by 22.4% MoM. Pangang Group advanced the construction of supply chain management systems, continuously optimized resource system layouts, and built a dual-track resource structure of "high strength in the north + high cost performance in the surrounding areas." Through strategic cooperation with leading enterprises and strengthened cooperation with regional suppliers, Pangang Group achieved high cost-performance resource procurement, building a lower-cost, higher-efficiency, and more resilient supply chain system. In Q1, Pangang Group met its procurement cost reduction targets and exceeded basic logistics cost reduction goals. In Q1, Pangang Group showed positive trends in management improvement, technical breakthroughs, industrial transformation, party building, and shared development. Currently, the cadres and workers of Pangang Group continue to hone their skills and rigorously implement work to ensure achieving "half the time, more than half the tasks" in H1. With the deepening of various tasks, Pangang Group will maintain a steady development momentum, laying a solid foundation for the high-quality development of the "New Pangang" and making new and greater contributions to Ansteel Group's accelerated construction of a world-class enterprise.