Board press release

The tenth meeting of the 18^th Board of Directors of China Steel Corporation (CSC) was held on February 29, 2024. Major resolutions were:

1. Appropriation of distributable earnings for 2023
The meeting proposed to appropriate NT$1.4 and NT$0.35 per share for dividends of preferred stocks and common stocks respectively. The above proposal will be submitted to the 2024 stockholders' meeting for recognition.

2. Revamp Project of #23 hot stove of No.2 blast furnace
In order to stabilize blast furnace operations and ensure smooth production, CSC will invest NT$641 million in the revamping of #23 hot stove of No.2 blast furnace. It is scheduled to commence on November 1, 2024 and for completion on December 31, 2027, spanning a period of 3 years and 2 months.

3. Replacement-in-kind turbine rotor of 5# turbine generator of power plant
CSC will invest NT$315 million in the replacement-in-kind turbine rotor of #5 turbine generator of power plant. With the completion of this project, the operational stability of #5 turbine generator can be ensured in order to sustain the continuous steam production and electricity generation. It is scheduled to commence on March 1, 2024 and for completion on June 30, 2027, spanning a period of 3 years and 4 months.

4. The sixth collective agreement draft with the Labor Union of CSC was approved, and the agreement is scheduled to be signed by both parties on March 15.
CSC and the Labor Union of CSC started the sixth collective agreement draft consultation on July 7, 2023, and both the parties based on the concept of labor and capital as a unified entity during negotiation process. After just 7 consultation meetings over 5 months, a consensus of 80 collective agreement draft articles was reached. The resolutions of collective agreement draft were passed at the third congress of the 14th delegates of the Labor Union of CSC on December 21, 2023, and at the tenth meeting of the 18th Board of Directors of CSC, respectively. The agreement is scheduled to be signed by both the parties on March 15, 2024.
In accordance with relevant labor law change, CSC and the Labor Union of CSC keep the content of the collective agreement up to date with times. It is aimed not only at safeguarding employees’ benefit, but enhancing sustainable development of CSC. The negotiation process demonstrates the stable and harmonious relationship between both parties, achieving mutually beneficial outcomes through positive interaction and communication.

5. Date and venue for CSC's 2024 shareholders' meeting
Date: June 19, 2024 (Wednesday) 9:00 a.m.
Place: CSC (No.1, Chung Kang Rd., Hsiao Kang District, Kaohsiung, Taiwan, R.O.C)
Date and place for accepting stockholders' proposals
Date: April 15-24, 2024
Place: CSC Building (No.88, Cheng Gong 2nd Rd., Qianzhen District, Kaohsiung, Taiwan, R.O.C.)

The eighth meeting of the 18^th Board of Directors of China Steel Corporation (CSC) was held on November 3, 2023. Major resolutions were:

1. CSC will invest over NT$600 million to launch the "Oxygen Plant Neon Enrichment Equipment Project"
Neon is a critical material of laser gas for chip manufacturing, which is one of the extremely important elements to the semiconductor industry. In order to reduce geopolitical risks, ensure that strategic materials for semiconductors can be supplied domestically, enhance the resilience of Taiwan's semiconductor industry supply chain, and promote the diversification and transformation of CSC’s operations, CSC invests in the "Oxygen Plant Neon Enrichment Equipment Project" by taking advantage of the company's air separation unit which is the largest one in Taiwan, installing neon enrichment distillation equipment to produce neon. After the completion of this project, it will help CSC to increase its profits and long-term stable non-operating revenue and income, and boost CSC as an integral part of the semiconductor industry's key raw material supply chain.

2. Employee Shareholding Trust Improvement
CSC has introduced the Employee Stock Ownership Trust (ESOT) since 1998, and currently, the shares of ESOT account for 2.43% of CSC’s shares outstanding, making it the second-largest shareholder. This system helps to stabilize the company's shareholding and to enable its employees to accrue their second pension and safeguard their retirement life. To enhance the talent recruitment and retention, and to take care of its employees' retired life, CSC continues to optimize the shareholding trust system. The board has passed an implementation plan for the ESOT that includes “introducing a new allocation rate of 30% scheme while maintaining the current allocation rate of 20% scheme” and “delivering the incentive bonus to ESOT". CSC aims to enhance employees' engagement, internal cohesion, and solidarity, thereby stabilizing the company's shareholding structure.

3. Repurchase of Ordinary Shares of the Company
The board has approved the repurchase of 150 million shares of the company's ordinary stock, with the repurchase period set from November 6, 2023 to January 5, 2024. The price range for the repurchase is set between NT$16.98 and NT$37.26 per share, with the execution price to be determined according to actual stock market conditions. The purpose of the repurchase is to transfer the shares to employees.

In the past two to three years, the global economy has been affected by the COVID-19 pandemic, the Russo-Ukrainian War, and lockdowns in China, which have impacted global economic development, suppressed market demand momentum, caused stock market volatility, and affected steel demand. During this period, CSC has closely monitored the development trends of the steel industry and global economic movements. The World Steel Association (worldsteel) recently released its latest forecast for global steel demand in 2024, indicating that bearish factors are gradually dissipating, the demand trough has passed, and signs of recovery are emerging, with global steel demand expected to grow moderately by 1.9% next year, and the medium to long-term outlook remains optimistic. The United States recently announced that its Gross Domestic Product (GDP) growth rate for the third quarter reached 4.9%, the largest increase in nearly two years; China's GDP growth rate for the third quarter was also 4.9%, with both of the world's largest economies surpassing expectations for third-quarter economic growth. Furthermore, the National Development Council of the Executive Yuan, Taiwan recently announced the September business monitoring indicators, with the light signal turning to "yellow-blue," ending a continuous ten-month blue signal and establishing a trend of economic recovery. Additionally, the Federal Reserve (Fed) of the United States announced on November 1st that it would keep interest rates unchanged, pausing rate hikes for the second consecutive time, reflecting a stable and positive global economic recovery. CSC has seized this economic recovery trend and assessed that the timing is ripe, thus proposing to the board the fourth repurchase of treasury shares and it was approved.

Considering CSC's excellent competitive advantage among global steel makers and our long-term stable financial condition, the recent stock price has been overly reactive to the downturn in economic expectations, affected by the global political-economic situation and international steel market demand recovery falling short of expectations. In the past, CSC implemented treasury stock buyback to protect shareholder rights in 2001, 2005, and 2008, respectively. This time, after 15 years since 2008, the repurchase is being executed again, demonstrating CSC's confidence in the future development of the steel market and determination to protect shareholder rights. CSC also hopes to motivate our employees and work together to achieve excellent results.

The sixth meeting of the 18^th Board of Directors of China Steel Corporation (CSC) was held on May 5, 2023. Major reports of company affairs were:

Implementation Status of CSC Group's Plan of Inventory and Assurance Schedule of Greenhouse Gas
Taiwan Stock Exchange Corporation has requested listed companies to fulfill their plans of inventory and assurance schedule of greenhouse gas for the parent company and the group (including subsidiaries) by the end of the second quarter of 2022 and the end of the first quarter of 2023, respectively, and submit their plans to the Board of Directors for control.
CSC has been conducting annual greenhouse gas inventory and verification since 2012. The greenhouse gas inventory and assurance schedule of the Group's subsidiaries has been reported in the first quarter of 2023.

2. The promotion of biodiversity issues
In order to fulfill its commitment to biodiversity, CSC has commissioned the Department of Biological Sciences of National Sun Yat-sen University to conduct quarterly surveys of the biodiversity of the Hsiao Kang production plant of CSC and the Kaohsiung Park (where CSC has adopted the planting and maintenance) from November 2022 to October 2024. In the future, the survey results of this project will be used to establish a baseline of ecological species as a reference for establishing indicator species, and the research team will assist in providing follow-up ecological review projects and applying environment-friendly measures to sustain ecological balance and achieve the goal of "No Net Loss" for biodiversity indicators.

The fifth meeting of the 18th Board of Directors of China Steel Corporation (CSC) was held on February 24, 2023. Major resolutions were:

1. Appropriation of distributable earnings for 2022
The meeting proposed to appropriate NT$1.4 and NT$1 per share for dividends of preferred stocks and common stocks respectively and the dividend payout ratio is 87%. The above proposal will be submitted to the stockholders' meeting for recognition on June 16, 2023.

2. Date and venue for CSC's 2023 shareholders' meeting
Date: June 16, 2023 (Friday) 9:00 a.m.
Place: CSC (No.1, Zhonggang Rd., Xiaogang Dist., Kaohsiung City, Taiwan)
Date and place for accepting stockholders' proposals
Date: April 10-19, 2023
Place: CSC Building (No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan)

3. Appointment of Company Secretary
The Board appointed Mr. Chien-Chih Hwang as the Company Secretary of CSC and his appointment was effective on February 24, 2023.

The fourth meeting of the 18^th Board of Directors of China Steel Corporation (CSC) was held on December 30, 2022. In order to respond positively to drastic challenges from industrial environment, the trend regarding green energy, carbon reduction and carbon neutrality, CSC proposed its new Corporate Vision, “We aspire to be a sustainable growth enterprise that distinguishes itself through a firm commitment to smart innovation, green energy, carbon reduction, and value co-creation.” to the Board vowing to fulfill ESG missions and be an distinguished sustainable enterprise. Meanwhile, for devoting itself to the operational and developmental cores of being high value-added steel mill and developing green energy business, CSC's five-year operation and development strategy has been extended to a ten-year one for the first time.

CSC will actively boost its sales of advanced premium steel (APS) products in particular, and expects to increase the sales volume ratio and gross profit ratio of APS products from 8.1% and 21% in 2023 to 21% and 40% in 2032, respectively. In terms of smart production lines, 46 and 76 projects are schemed to be fulfilled within five and ten years respectively; CSC Group's green energy generation will be increased from 110 million kWh in 2023 to 1.232 billion kWh in 2032. Based on smart innovation, CSC will enhance its corporate robustness, help improving the international competitiveness of domestic steel industry, and create the shared value with its stakeholders.

The third meeting of the 18^th Board of Directors of China Steel Corporation (CSC) was held on November 4, 2022. Major resolutions:

1. Revamping of the Cranes Replacement in the No.1 Steelmaking Plant
In order to reduce aging equipment’ risks of major accident or shutdown and maintain safety requirements of personnel and equipment, CSC will invest NT$1,193 million to launch the project of revamping of the Cranes Replacement in the No.1 Steelmaking Plant. After completion of this project, it can reduce maintenance hours and cost, and possesses the efficacy of energy saving and carbon reduction due to the variable voltage and variable frequency electrical control system. The project will commence on January 1, 2023 and is scheduled for completion on July 31, 2028.

2. Construction of New Liquid Nitrogen Storage Tank and Back-up Systems at the Oxygen Plant
In order to enhance safe reserve and robustness of liquid nitrogen, emergency support and endurance of liquid nitrogen during massive power failure, CSC will invest NT$440 million to launch the project of Construction of New Liquid Nitrogen Storage Tank and Back-up Systems at the Oxygen Plant. After completion of this project, the total benefit of power saving and carbon reduction in production process is NT$79.8 million per year. The project will commence on December 1, 2022 and is scheduled for completion on October 31, 2025.

3. Appointment of Chief Security Officer
The Board appointed Mr. Chien-Chih Hwang as the Chief Security Officer of CSC and his appointment was effective on November 4, 2022.

The second meeting of the 18^th Board of Directors of China Steel Corporation (CSC) was held on August 5, 2022. Major resolutions were:

1. CSC will invest NT$5,489 million to launch the Replacement of Equipment and Improvement of Rolling Capacity Project of 2PLCM at Rolling Mill Department III. The project will commence on September 1, 2022 and is scheduled for completion on December 31, 2025.
This project is planned to run with innovation and revamp in parallel. Based on successful experience of converting reciprocating rolling to continuous rolling, the technology of warm rolling to produce high-grade non-oriented electrical steel in tandem mill is developed. With integrating the CSC Group's existing production lines and refining equipment, the goal of maximizing the high-grade non-oriented electrical steel production capacity is achieved without setting any new line, and warm continuous rolling capacity with high technology, high quality, high yield, low cost and short delivery time is established as well.
After the completion of this project, the rolling capacity of 2PLCM can be effectively improved with 200,000 metric tons/year of high-grade non-oriented electrical steel by warm rolling, and 100,000 metric tons/year of medium-high carbon steel sheet and ultra-high strength steel for automobile. It is not only enhance the ability to take orders but also sustain CSC's leading position in Electric Vehicle (EV) market.
Furthermore, with this project, the CSC's internal carbon reduction benefit is 5,071 metric tons/year and the external carbon reduction benefit with the application of high-grade non-oriented electrical steel to make parts of high-efficiency motors is estimated to be 866,000 metric tons/year, with a total amount equivalent to an annual carbon uptake of 2,239 Daan Forest Parks.

2. Appointment of President
The Board appointed Director Dr. Shyi-Chin Wang as president of CSC from August 5, 2022 to May 31, 2023.

3. Appointment of Vice President of Engineering Division
Former assistant Vice President of Engineering Division Mr. Jui-Teng Chen (currently president of China Steel Structure Corporation) has been promoted as Vice President of Engineering Division and his appointment was effective on August 5, 2022.

The first meeting of the 18^th Board of Directors of China Steel Corporation (CSC) was held on June 17, 2022, and Director Chao-Tung Wong (representing Ministry of Economic Affairs) was elected as Chairman of CSC.