Maanshan Iron & Steel Company Limited provided earnings guidance for the fiscal year ended December 31, 2023. for the year, based on a preliminary estimate by the finance department, the net loss of the Company attributable to the shareholders of the listed company for the year 2023 is estimated to reach approximately RMB 1,324 million, representing a year-on-year increase of approximately RMB 466 million or 54.31%. The net loss excluding non-recurring gains or losses attributable to the shareholders of the listed company is estimated to reach approximately RMB 1,698 million, representing a year-on-year increase of approximately RMB 587 million or 52.84%.

main reasons for the estimated loss of the results during the period: 1. Impact of principal business In 2023, the steel industry was in an extraordinarily severe situation, with supply exceeding demand, the actual reduction of cost being significantly smaller than that of steel prices, thus the profitability for steel enterprises was severely squeezed. The Company responded proactively and seized the opportunities in the market including rail transport, new energy vehicles, home appliances guided by the "Four directions of development (high-end, intelligent, eco-friendly and efficient)" and "Four-with" in operation concept. The operating performance in the second half of the year was improved significantly, achieving a net profit attributable to shareholders of the listed company of RMB 911 million (unaudited), representing a decrease in losses as compared to last period through practicing accounting operation and strengthening lean operations, as well as focusing on cost reduction and efficiency improvement while seeking variety and channels.

However, due to the impact of the high market price of raw fuels and other factors, income from operations in the second half of the year did not fully cover the first half loss, recording a loss in operating results for the year 2023. 2. Impact of non-recurring gains or losses The non-recurring profit or loss of the Company attributable to the shareholders of the listed company for 2023 recorded a net gain of approximately RMB 374 million, which was mainly due to the comprehensive impacts of the profit or loss from disposal of non-current assets, the investment income from disposal of subsidiaries, the receipt of government subsidies. The year-on-year increase in the Company's non-recurring profit or loss attributable to the shareholders of the listed company for 2023 was mainly due to the increase in government grants recognised by the Company in the profit or loss for the period of 2023 and the investment income derived from the merger of Magang Group Finance Company Limited, a controlling subsidiary of the Company, and Baowu Group Finance Co.

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