1. Changes in the New Securities Law

        At the end of 2019, the Standing Committee of the National People's Congress of China reviewed and approved the revised "Securities Law of the People's Republic of China" (hereinafter referred to as the New Securities Law), which will be officially implemented in March this year. After the introduction of the bill, the company has conducted in-depth studies and discussions on it, and felt that the new securities law has put forward higher requirements in terms of "information disclosure" and "investor protection".

       "Information Disclosure" is listed in a separate chapter in the new Securities Law, setting up a brand-new concept of "information disclosure obligor", broadening and enriching the scope and standards of information disclosure, and highlighting the information disclosure of directors, supervisors, and controlling shareholders. The status, obligations and responsibilities of the company have improved the basic rules for information disclosure, clarified the supervision direction and focus of information disclosure, reshaped the information disclosure supervision system and supervisory power, established a three-dimensional and standardized model of information disclosure for listed companies, and gave full play to the information disclosure rules. Overall effectiveness.

        At the same time, the new securities law also set up a special chapter on "Investor Protection" to greatly improve the level of investor protection: distinguish between ordinary investors and professional investors, and make targeted arrangements for investor rights protection; * This time clearly stipulates the investor suitability system, clarified the securities representative litigation system-"the system of implied participation and explicit withdrawal", and in the "Legal Liability" chapter, the level of punishment for illegal acts has been greatly increased, and the multiple of punishment has been changed from the original Basically, the 1-5 times increase to 1-10 times. When the securities market adopts the policy of "lenient entry and strict management" in the future, the policy goal of strict management will be achieved with strong penalties.

        These changes reflect the determination of the regulatory agencies to restrict the behavior of the management of listed companies, strengthen the information disclosure of listed companies, and protect the majority of investors.

        2. The company's practice under the new securities law

        The promulgation of the new securities law has allowed the capital market to see legislative progress that is in line with national conditions and has practical significance. While studying laws and regulations seriously, the company is also reviewing its own operating practices, hoping to continuously improve the company's information disclosure and investor relationship management.

       1. Disclosure of acute events at the first time to protect investors' right to know

Baosteel Co., Ltd. has been adhering to the principle of "open, fair and just" information disclosure for many years, adhering to the concept of "telling investors the true story", and doing a good job of information disclosure seriously and rigorously. The company strictly follows the requirements of temporary announcements and regular report format guidelines for information disclosure. The information disclosed is concise and clear, easy to understand, and reflects the true situation of the company in a targeted and timely manner. It does not make false or concealed reports, and help investors understand in a timely manner. The company’s ** situation, increase company transparency.

       In March of this year, a production accident occurred at a company base. On the night of the accident, there was news on Weibo and videos on WeChat, all kinds of discussions and speculation flooded the Internet. In the face of this emergency, the company attached great importance to it: the internal department sorted out the relevant situation overnight; accordingly, the board of directors drafted a temporary announcement on the concerns of the external market, and submitted it to the company’s management for review. Early the next morning, the company’s temporary announcement was submitted for release, allowing investors to understand the specific impact of the incident through the company’s announcement before the opening of the stock market. Such timely and accurate information disclosure effectively calmed down the spread of market rumors, and while ensuring investors' right to know, it also maintained the stability of the company's stock price.

        2. Increase voluntary disclosure in regular reports to enhance investors' reading experience

        While doing a good job of regular information disclosure, the company considers from the perspective of investors' reading, empathizes with it, and starts from the two aspects of "improving the reading experience" and "highlighting key content", and continues to increase voluntariness in the preparation of regular reports. Information disclosure. Starting from the 2013 annual report, a new chapter "Company Highlights" was added, and the core content of the annual report was extracted and refined, and placed in the first chapter for investors to understand; starting from the 2014 annual report, "a picture to understand the performance of the annual report" was added to the home page of the annual report , To introduce the company’s business performance with a concise and straightforward picture, so that investors can understand at a glance, and understand the annual business situation as quickly as possible; in the 2019 annual report, a summary of the company’s interaction with investors has been added to respond to external The market is concerned about this.

In the future, the company will continue to review the preparation of regular reports, and continue to optimize and improve the reading experience of investors based on investors’ concerns, so as to help the company’s regular report information to be better understood and promoted in the capital market.

        3. Adhere to high-quality investor relations interaction

        Since 2020, affected by the epidemic, although the company has resumed work and production, there are still many restrictions and inconveniences for gatherings, exchanges and contacts. How to carry out a series of investor relations activities after the release of this year's regular report to ensure high-quality communication between the company and the capital market has become an urgent problem for the company's board of directors team.

        In order to take into account the prevention and control of the epidemic and the communication experience of investors, the company finally chose the "video live + conference call" method to hold the company's annual performance conference. The company’s secretary of the board of directors worked closely with external service providers to confirm the details of the live video; at the same time, the venue and network guarantees were tested in advance to ensure the audio-visual effects of the venue.

        At the end of April, the company held a performance conference in the form of a live video broadcast. Chairman Zou Jixin, General Manager Hou Angui, Chief Financial Officer and Secretary of the Board of Directors Wang Juan attended the meeting. This performance material closely follows the focus of market attention and elaborates on performance interpretation, Baowu merger, environmental protection, and industry outlook. In the interactive communication session, the company's management answered multiple questions on long-term strategy, mid-term operation, and short-term performance. The entire conference lasted 2 hours, the process was compact, and the amount of information was huge, which was well received by the participants.

       This is the company's first attempt to publish results through live video broadcasting, and it has achieved good results. The coverage has been greatly improved compared with the previous live model. According to statistics, on the day of the performance announcement, there were 1036 hits on the live webcast. As of May 8, the webcast page had a total of 8,000 views.

In addition, the live video also enhanced the company's employees' sense of participation in the performance announcement, giving them the opportunity to listen to the company's management's thinking about the industry and the company. Many employees gave good comments on this.

        With the implementation of the new securities law, the reform of China's capital market is advancing in depth, and the investment philosophy of the capital market in the future will also become more mature and diversified. At that time, cyclical basic materials companies such as Baosteel Co., Ltd. are expected to obtain a more reasonable valuation by virtue of their excellent performance and high dividends. The company will continue to strengthen information disclosure and investor relations, and improve and optimize corporate governance; it is ready to take off and act accordingly to usher in the spring of company valuation as soon as possible.

——Board Secretary Office of Baosteel Co., Ltd.