Maanshan Iron & Steel : INSIDE INFORMATION/OVERSEAS REGULATORY ANNOUNCEMENT - 2022 FIRST QUARTERLY REPORT

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.BBOTIBO *SPO 4UFFM $PNQBOZ -JNJUFE

(A joint stock limited company incorporated in the People's Republic of China)

(Stock Code: 00323)

INSIDE INFORMATION/OVERSEAS REGULATORY

ANNOUNCEMENT

2022 FIRST QUARTERLY REPORT

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

IMPORTANT NOTICEj

(I) The board of directors (the "Board"), the supervisory committee, the directors, the supervisors and senior management of Maanshan Iron & Steel Company Limited (the "Company") warrant that there are no false representations or misleading statements contained in, or material omissions from this report; and severally and jointly accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this report.

(II) Mr. Ding Yi, the person-in-charge of the Company; Mr. Mao Zhanhong, the person overseeing accounting operations; and Mr. Xing Qunli, the person-in-charge of the Accounting Department, make representations in respect of the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.

(III) The financial statements contained in this first quarterly report have not been audited, but have been reviewed by the Audit Committee in the Board of the Company.

I.

Major Financial Data

(I)Major accounting data and financial indicators

Unit: YuanCurrency: RMB

Items

Revenue

Net profit attributable to equity holders of the Company

Net profit excluding non-recurring gains or losses attributable to equity holders of the Company

Net cash flows from operating activities Basic earnings per share (RMB/share) Diluted earnings per share (RMB/share) Return on net assets (weighted average)

(%)

Total assets

Equity attributable to the shareholders of the Company

As at the end of the reporting period

90,975,181,759 34,005,345,647

The reporting period

Increase/decrease of the reporting period as compared to the same period of previous year

(%)

26,580,269,666 11.28

1,253,376,821 -17.04

1,130,866,442 -21.26

1,637,434,029 -25.36

0.16 -20.00

0.16 -20.00

Decrease by 1.44

3.75 percentage points

Increase/decrease as at the end of the reporting period as

As at the end of compared to the endprevious year

91,207,743,018 32,752,858,934

of previous year

(%)

-0.25 3.82

Note:

"The reporting period" refers to the three-month period from the beginning of the quarter to the end of the quarter, the same below.

(II) Items and amounts of non-recurring gains or losses

Unit: YuanCurrency: RMB

Items

Amount for the period

NoteGains/losses from disposal of non-current assetsGovernment subsidies recognized in current gains/ losses, excluding those having close relationship with the

Company's normal business, conforming to the national policies and regulations and enjoying ongoing fixed amount or quantity according to certain standard

Gains or losses arising from fair value changes of held-for trading financial assets, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities, and investment income on disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities and other equity investment other than the hedging business related to the normal business of the Company Non-operating income and expenses other than the above items

• 130,437,708 Mainly represents the compensation received by the holding subsidiary Ma Steel (Hefei) Iron & Steel Co., Ltd. for land resumption and storage

• 54,272,281 Government incentive funds

• 26,980,553 Changes in fair value related to hedging and forward foreign contracts businesses

-25,801,842

Other gains/losses items conforming to the 5,524,828 definition of non-recurring gains or losses

Less: Impact of income tax 46,464,089

Impact of non-controlling interests (after tax) 22,439,060

Total 122,510,379

Employee termination benefits

(III) Changes in major accounting information and financial indicators of the

Company and the reasons thereof

Item

Percentage of

change Main reason

(%)

Financial assets	36.31	The certificates of deposit and other wealth
held for trading	management products newly purchased by Magang
Group Finance Company Limited ("Finance
Company") during the current period increased as
compared with the end of previous year
Notes receivable	-53.32	The volume of bills with right of recourse during the
current period decreased as compared with the end
of previous year
Financial assets	-36.60	The bond reverse repurchase business of the Finance
purchased under	Company decreased during the current period
agreements to
resell
Other current	-56.33	The held-to-maturity financial bonds of the Finance
assets	Company decreased during the current period
Long-term	-31.74	The external after-sale leaseback business of the
receivables	Finance Company during the current period
decreased as compared with the end of previous year
Deposits and	N/A	The interbank borrowing funds of the Finance Company
balances from	increased during the current period
banks and
other financial
institutions
Financial assets	-79.90	The amount of funds pledged by Finance Company to
sold under	other financial institutions decreased during the year
repurchase
agreements
Financial liabilities	-55.19	The fair value of forward foreign exchange contracts
held for trading	held by the Company changed during the current
period
Non-current	-46.66	The long-term borrowings due within one year repaid
liabilities due	during the current period
within one year
- 4 -

Item

tax and surcharges

Percentage of changeMain reason

(%)

• -32.09 The VAT payable and corresponding surcharge taxes decreased during the current period

  Selling expenses

  General and administrative expenses

• 32.12 A year-on-year increase in the service expenses paid to intermediaries to expand selling channels

• 54.46 The provision for special one-off awards made at the end of 2020 were reversed in the same period of previous year

  R&D expenses

• 30.82 To enhance the overall R&D capability of the Company and enhance its competitiveness in the high-end product market, the Company further intensified its R&D input, expanded the product development and accelerated its product upgrade during the current period

  Financial expenses

• -62.93 Firstly, the Company planned to reduce the scale of interest-bearing liabilities, and simultaneously optimized the interest rate on borrowings to reduce interest expenses. Secondly, the appreciation of RMB during the current period resulted in exchange gains, compared to exchange losses in the corresponding period of previous year

  Other income

• 181.62 The Company received governmental corporate award bonuses during the current period

  Gain on the changes in fair value

• -30.81 Gains from changes in fair value of forward foreign exchange contracts held by the Company during the current period experienced a slight year-on-year decrease

Asset impairment losses

-1,259.28

Certain subsidiaries made inventory impairment provision during the current period, compared to reverse in the corresponding period of previous year