Board press release

The 24^th meeting of the 16^th Board of Directors of China Steel Corporation (CSC) was held on May 6, 2019, and approved a resolution of investing NT$7,017.8 million to launch “Enclosed Coal Storage Construction Phase I” project. The purpose is to improve environmental protection, and this project will commence on July 1, 2019 and is scheduled for completion on December 31, 2021.

The 23^th meeting of the 16^th Board of Directors of China Steel Corporation (CSC) was held on March 25, 2019. Major resolutions were:

• 1. Appropriation of distributable earnings for 2018
  The meeting proposed to appropriate NT$1.4 and NT$1.0 per share for dividends of preferred stocks and common stocks respectively. The above proposal will be submitted to the stockholders' meeting for recognition on June 19, 2019.
• 2. Date and venue for CSC's 2019 shareholders' meeting
  • Date: June 19, 2019 (Wednesday) 9:00 a.m.
    Venue: CSC Auditorium (1, Chung Kang Road, Hsiao Kang, Kaohsiung, Taiwan)
  Date and place for accepting stockholders' proposals and candidate nomination of directors
  • Date: April 15-24, 2019
    Place: China Steel Building (88, Chenggong 2nd Road, Qianzhen, Kaohsiung, Taiwan)
• 3. Revamping of Turbine Blowers for No.1 Power Plant
  In order to stabilize the cold blast air required for blast furnaces, improve the efficiency of energy use, and comply with the stringent environmental regulations in the future, CSC will invest NT$2,593 million for this project. It will commence on April 1, 2019 and is scheduled for completion on December 31, 2022.
• 4. Adjustment of employees' salary
  An average of 3.5% raise of employees' salary was approved effective from April 1, 2019.
• 5. Appointment of CSC’s Company Secretary
  The Board passed the proposal for appointing Vice President of Corporate Planning Division Mr. Pai-Chien Huang as concurrently Company Secretary effective from March 25, 2019.

The 21^th meeting of the 16^th Board of Directors of China Steel Corporation (CSC) was held on November 12, 2018. Major resolutions were:

• 1. Revamping of Nos. 3 & 4 Ship-unloaders
  CSC’s Nos. 3 & 4 Ship-unloaders, dedicated to raw material import and located in #97 Dock of Kaohsiung Port, have been operated over 30 years. For ensuring smooth discharging of raw material and stabilizing blast furnace production, CSC will invest NT$2,077 million for this project. It will commence on January 1, 2019 and is scheduled for completion on April 30, 2021.
• 2. Revamping of Nos. 1 & 2 sinter plants
  Due to sinter plant cannot be revamped during regular maintenance, CSC plans to revamp its Nos. 1 & 2 sinter plants during the revamp of the 3 ^rdCampaign of No. 2 Blast Furnace. After this project is completed, it will increase operation rate of the equipment, improve sinter quality, reduce energy consumption, restore dust collection efficiency and cut down production costs, etc. CSC will invest NT$1,199 million for this project. It commences on July 1, 2018 and is scheduled for completion on June 30, 2021.
• 3. Addition of waste gas desulfurization system for No.1 sinter plant
  To devote to environmental protection, act in compliance with Executive Yuan's "Air Pollution Control Action Plan", reduce the sulfur oxides emission and improve air quality, CSC will invest NT$733 million for this project. It will commence on January 1, 2019 and is scheduled for completion on December 31, 2021.
• 4. Appointment of CSC’s Vice President of Corporate Planning Division
  Former Vice President of Corporate Planning Division, Mr. Yi-Lang Lin, was retired on October 31, 2018. Chairman of Gains investment Corporation, Mr. Pai-Chien Huang (the ex-Assistant Vice President of Finance Division of CSC), is promoted to succeed Mr. Lin as Vice President of Corporate Planning Division effective from November 12, 2018.

The 20^th meeting of the 16^th Board of Directors of China Steel Corporation (CSC) was held on October 9, 2018. Major resolutions were:

• 1. Revamping of No. 3 Reheating Furnace for No. 1 Hot Strip Mill
  No.3 Reheating Furnace has been operated over 30 years since 1986. CSC will invest NT$988 million for this project. This project has been commenced on September 1, 2018 and is scheduled for completion on September 30, 2021. After this project is finished, it will be able to improve the efficiency of energy consumption and heating/thermal homogenization of the slabs for raising the production capability of high-grad products.
• 2. Fund endowment for CSC Group Education Foundation
  CSC Group Education Foundation (the Foundation) was established through CSC’s fund endowment. Each year, CSC endows the Foundation with the amount of three quarters of the Foundation’s needed fund deducting its interest income. In 2018, CSC endows the Foundation with NT$11.058 million.
• 3. Appointment of CSC’s President
  Mr. Horng-Nan Lin, Director (representing Chiun Yu Investment Corporation) of CSC Board, was retired on September 30, 2018 as President of CSC. In order to promote CSC’s important missions nowadays, such as the projects of equipment revamp, environmental improvement, and human resource inheritance, the Board passed the resolution for appointing Director Horng-Nan Lin as concurrently President of CSC.
  It’s a one-time appointment for no more than one year. This appointment meets related regulations and is in conformity to the spirit of Corporate Governance. Mr. Horng-Nan Lin will not receive any salary from CSC but Chiun Yu Investment Corporation.

The 19^th meeting of the 16^th Board of Directors of China Steel Corporation (CSC) was held on June 21, 2018. Major resolutions were:

• 1. Revamping Project of No. 2 Blast Furnace 3^rd Campaign
  No.2 Blast Furnace 3^rd Campaign has been operated over 12 years since January 2006. By the time No. 2 Blast Furnace 3rd Campaign finishes its mission of production in October 2020, CSC will shut the furnace off and revamp it for restoring and improving equipment performance. CSC will invest NT$6,369 million in this revamping project. This project has been commenced on April 1, 2018 and is scheduled for completion on June 30, 2021.
• 2. Revamping Project of Finishing Rolling Mill Area Auxiliary Equipment for No. 1 Hot Strip Mill
  No. 1 Hot Strip Mill has been operated over 36 years since it commenced operation in February 1982. In order to improve rolling stability, fulfil requirements of thin size and high precision of products, as well as develop high value-added products, CSC will invest NT$461 million in this revamping project. This project will commence on September 1, 2018 and is scheduled for completion on June 30, 2021.
• 3. Promotion of Legal Office to Legal Department
  In order to adapt to the trend of growing importance of corporate governance, cope with the increasing CSC Group's legal affairs, and assist CSC’s subsidiaries in law compliance, the Board revised CSC’s organization and approved to promote the Legal Office to the Legal Department which will take more responsibilities of legal affairs.

The 18^th meeting of the 16^th Board of Directors of China Steel Corporation (CSC) was held on June 21, 2018. Major resolutions were:

• 1. Vice President of Commercial Division Mr. Shin-Min Lee will be dismissed from the position for further assignment. Assistant Vice President of Commercial Division Mr. Chien-Chih Hwang will be promoted to succeed Mr. Lee as Vice President of Commercial Division effective from July 1, 2018.
• 2. Vice President of Finance Division Mr. Ming-Hsien Wu will be dismissed from the position due to mandatory retirement. Assistant Vice President of Finance Division Mr. Yueh-Kun Yang will be promoted to succeed Mr. Wu as Vice President of Finance Division effective from July 1, 2018.

The 17^th meeting of the 16^th Board of Directors of China Steel Corporation (CSC) was held on May 9, 2018. Major resolutions were:

• 1. Revamp inner shell and furnace lining of hot stove 31 of No. 3 blast furnace
  The project will commence on May 1, 2018 and is scheduled for completion on June 30, 2020. Total amount of investment for the project will be NT$486 million. After completion, four hot stoves will be integrated with two stoves blast in parallel, and stabilize blast furnace production.
• 2. Revamp No. 1 reheating furnace of Plate Mill at Rolling Mill Department I
  The project will commence on June 1, 2018 and is scheduled for completion on December 31, 2019. Total amount of investment for the project will be NT$293 million. After completion, temperature uniformity of slab longitudinal direction will be improved, capabilities of two reheating furnaces of Plate Mill will be balanced, and operation and production stability will be enhanced.

The 16th meeting of the 16th Board of Directors of China Steel Corporation (CSC) was held on March 28, 2018. Major resolutions were:

• 1. Appropriation of distributable earnings for 2017
  The meeting proposed to appropriate NT$1.4 and NT$0.88 per share for dividends of preferred stocks and common stocks respectively. The above proposal will be submitted to the stockholders' meeting for recognition on June 21, 2018.
• 2. Date and venue for CSC's 2018 shareholders' meeting
  • Date: June 21, 2018 (Thursday) 9:00 a.m.
    Venue: CSC Auditorium (1, Chung Kang Road, Hsiao Kang District, Kaohsiung, Taiwan)
  Date and place for accepting stockholders' draft resolutions
  • Date: April 17-26, 2018
    Place: China Steel Building (88, Chenggong 2nd Road, Qianzhen District, Kaohsiung, Taiwan)
• 3. Investment of setting up a company for undersea foundation manufacture
  In order to provide undersea foundation facility of offshore wind power turbine in Taiwan, to grasp market opportunities, and to increase demands of steel plate, CSC will invest NT$3,421 million to set up a company for undersea foundation manufacture. The plant will be located in “Marine Technology Industry Innovation Zone” of Singda harbor, Kaohsiung. This project is planned to be launched in April, 2017 and to be completed in December, 2019.
• 4. Adjustment of employees' salary
  An average of 3.5% raise of employees' salary was approved effective from April 1, 2018.
• 5. Appointment of CSC’s President
  The President of CSC, Mr. Jih-Gang Liu, will retire on March 31, 2018. Chairman of China Steel Chemical Corporation Mr. Hong-Nan Lin will succeed Mr. Liu as CSC’s President effective from March 31, 2018.
• 6. Change of managerial personnel with effective date March 31, 2018.
  • (1) Mr. Chung-Te Chen will be dismissed from the position of Vice President of Engineering Division for further assignment. Vice President of Production Division Mr. Hsin-Chin Kuo will succeed Mr. Chen as Vice President of Engineering Division.
  • (2) Assistant Vice President of Production Mr. Chih-Tai Charng will be promoted as Vice President of Production Division.

Main resolutions included:

• 1. CSC will invest NT$ 2.767 billion in the project of revamping the iron ore and coal transport system and demolishing the existing transport equipment. This project, which will commence in January 2018 and is scheduled for completion in December 2024,will not only revamp the existing system but also enhance environmental protection.
• 2. Change of managerial personnel with effective date January 1, 2018.
  • (1) Mr. Chiu-Po Chang, Assistant Vice President of Administration Division, will be promoted as Vice President of Administration Division.
  • (2) Mr. Song-Jau Tsai, Assistant Vice President of Technology Division, will be promoted as Vice President of Technology Division.

Main resolutions included:

• 1. Fund endowment for CSC Group Education Foundation
  CSC Group Education Foundation (the Foundation) was established through CSC’s fund endowment. Each year,CSC endows the Foundationwith the amount of three quarters of the Foundation’s needed fund deducting its interest income.In 2017,CSC endowsthe Foundation with NT$10.143 million.
• 2. Change of managerial personnel
  • (1) Mr. Tsan-Ying Ho is dismissed from the position of Vice President of Technology, and is hired as an Advisor for further assignment with effective date September20, 2017.
  • (2) Mr. Chun-Lung Wu will be dismissed from the position ofVice President of Administration for further assignment with effective date September30, 2017.

• 1. Adjustment of employees' salary
  An average of 2.8% raise of employees' salary was approved with effective date from April 1, 2017 retrospectively.
• 2. Change of management positions to be effective on June 1, 2017
  • (1) Mr. Yi-Lang Lin, Assistant Vice President of Corporate Planning Division, will be promoted as Vice President of Corporate Planning Division.
  • (2) Mr. Ching-Chung Cheng, Vice President of Engineering Division, holds Chairman of Wind Power Business Development Committee concurrently, will act as Chairman of Wind Power Business Development Committee for full time. Assistant Vice President of Engineering Division Mr. Chung-Te Chen will be promoted as Vice President of Engineering Division.

• 1. Appropriation of distributable earnings for 2016
  The meeting suggested to appropriate NT$1.4 and NT$0.85 per share for dividends of preferred stocks and common stocks respectively. The above proposals will be submitted to the stockholders' meeting for recognition on June 21, 2017.
• 2. Date and venue for CSC's 2017 shareholders' meeting
  • Date: June 21, 2017 (Wednesday) 9:00 a.m.
    Venue: CSC Auditorium (1, Chung Kang Road, Hsiao Kang District, Kaohsiung, Taiwan)
  Date and place for accepting stockholders' draft resolutions and candidate nomination of directors
  • Date: April 17-26, 2017
    Place: China Steel Building (88, Chenggong 2nd Road, Qianzhen District, Kaohsiung, Taiwan)

• 1. Resources Development Department of Corporate Planning Division will be consolidated. Its business duties will be merged into Purchasing Department of Commercial Division in order to integrate the organizational functions of raw material purchase and resources investment.
• 2.Retirees Service Department of Administration Division will be consolidated. Its business duties will return to Human Resources Department of the same division in order to downsize the organization and promote the synergy of human resources.

The fifth meeting of the 16th Board of Directors of China Steel Corporation (CSC) was held on November 8, 2016. Major items of the agenda adopted were:

• 1. Revamp of hot stoves #34’s hearth shell and inner shell of No. 3 blast furnace
  This project will commence in January, 2017 and is scheduled for completion in December, 2018. The blast furnace will be able to stabilize its production by lap parallel operation with four hot stoves when this project completes.
• 2. Revamp of basic oxygen furnace gas reservoir of BOF plant I
  This project will make use of the space by relocating blast furnace gas reservoir for building a new basic oxygen furnace (BOF) gas reservoir to replace the old one at BOF plant I after the new one completes. It will commence in January, 2017 and is scheduled for completion in April, 2020.
• 3. Change of Vice President of Finance
  Vice President of Finance Mr. Yuan-Chuan Horng will retire on November 30, 2016 and Assistant Vice President of Finance Mr. Ming-Hsien Wu will be promoted to succeed Mr. Horng.

• 1. CSC will establish a solar power concession company by joint venture with its subsidiaries
  CSC will invest NT$959.2 million to establish a solar power concession company by joint venture with its subsidiaries, China Ecotek Corporation, China Steel Chemical Corporation, and Dragon Steel Corporation, in order to meet government’s green energy policy and grasp the development trend of energy saving and CO2 reduction. CSC’s shareholding ratio in the new company will be 55%. It is estimated within 3 years to complete the installation of 80MW solar power generation devices on about 80 acres of roofs of CSC Group’s plants for generating 102 million kWh per year.
• 2. Adjustment of employees' salary
  An average of 2.5% raise of employees' salary was approved effective from April 1, 2016 on.
• 3. Fund endowment for CSC Group Education Foundation
  CSC Group Education Foundation (the Foundation) was established by CSC through fund endowment. Every year three quarters of needed fund for the Foundation's operations was endowed by CSC after deducting the fund’s interest. In 2016, CSC will endow the Foundation NT$10.725 million.
• 4. Donation of bicycles to Kaohsiung Rapid Transit Corporation for the public
  CSC will donate 2,000 bicycles to Kaohsiung Rapid Transit Corporation in order to promote the riding of bicycles in the public and to response to the policy of energy saving and CO2 reduction of Kaohsiung City Government.
• 5. Change of management position will be effective on August 31, 2016
  • (1) Vice President of Production Mr. Hsiu-Chang Liang will retire on August 31, 2016. Chairman of China Steel Structure Co., Ltd. Mr. Hsin-Chin Kuo will be promoted to succeed Mr. Liang.
  • (2) Chairman of Wind Power Business Development Committee Mr. Mou-Pin Wang will retire on August 31, 2016. Vice President of Engineering Mr. Ching-Chung Cheng will serve Mr. Wang’s position concurrently.