Financial Performance - In Q1 2017, the company achieved a net profit attributable to shareholders of RMB 1.069 billion, with earnings per share of RMB 0.148 [2][3] - The company implemented cost reduction and efficiency improvement measures across seven areas, including sales price, production scale, procurement costs, logistics costs, and energy costs [3] Product Overview - The main products include hot-rolled sheets, cold-rolled sheets, galvanized sheets, color-coated sheets, medium-thick plates, large profiles, wire rods, seamless pipes, and cold-rolled silicon steel, widely used in automotive, home appliances, machinery manufacturing, shipbuilding, petrochemicals, and railway construction [3][4] Supply-side Reform Impact - The supply-side reform aims to alleviate excess capacity and promote a return to normal capacity utilization in the steel industry, positively impacting the company [3] - The company has no outdated capacity that needs to be reduced at its two production bases: Anshan headquarters and Bayuquan base [3] Automotive Steel Development - The company is one of the earliest producers of automotive steel in China, supplying steel for the first truck produced in New China [4] - It produces various automotive steel products, including high-strength steel and hot-dip galvanized steel, serving major automotive brands such as BMW, Mercedes-Benz, Nissan, Volkswagen, and Toyota [4] Pricing Principles for Iron Ore - The pricing principle for iron ore purchased from Ansteel Group is based on the average price of Platts 65% iron CFR China Northern (Qingdao Port) published daily, plus transportation costs [4][5] - A discount of 3% is applied to the average price of the Platts 65% index [5]

Group 1: Company Performance - In Q1 2017, the company achieved a net profit attributable to shareholders of RMB 1.069 billion, with earnings per share of RMB 0.148 [3] - The company focused on seven aspects: sales price, production scale, procurement price, logistics cost, external energy cost, and three types of expenses to enhance efficiency and reduce costs [3] Group 2: Product Overview - The main products include hot-rolled sheets, cold-rolled sheets, galvanized sheets, color-coated sheets, medium-thick plates, large profiles, wire rods, seamless pipes, and cold-rolled silicon steel, widely used in automotive, home appliances, machinery manufacturing, shipbuilding, petrochemicals, and railway construction [3][4] - The company is one of the earliest producers of automotive steel in China, with products used by major automotive brands such as BMW, Mercedes-Benz, Nissan, and Toyota [4] Group 3: Automotive Steel Development - The company plans to develop high-strength and hot-dip galvanized automotive steel products, aiming to become a leading supplier in this sector [4] - Major clients include well-known domestic automotive brands such as FAW, Volkswagen, General Motors, Dongfeng Motor, SAIC, BAIC, Great Wall Motors, Changan Automobile, BYD, Geely, and Chery [4] Group 4: Pricing Principles - The pricing principle for iron ore purchased from Ansteel Group is based on the average value of the Platts 65% iron CFR China North (Qingdao Port) midpoint price published daily, plus transportation costs [4]