Xinhua Finance:

The steel industry is a foundational industry in our country. Recently, the MIIT issued the "Specifications for the Steel Industry (2025 Edition)." What are the new changes? And what are the further considerations? Thank you.

Xie Shaofeng:

Thank you for your questions. I would like to invite Ms. Tao to answer your questions.

Tao Qing:

Thank you for your questions. In January this year, General Secretary Xi Jinping said during his inspection trip to Ansteel that the steel industry is an important foundational industry of the country, urging continued efforts to strengthen weak links, optimize industrial structures and contribute more to Chinese modernization. The important speech by General Secretary Xi Jinping clarified the positioning of the steel industry, pointed out its development direction and endowed it with a new historical mission.

Currently, the steel industry is operating steadily overall, and has entered a new stage of development with the aim of reducing quantity and improving quality. Business performance has gradually improved, with operating costs of key steel enterprises falling by 9.6% year on year and the average sales profit margin of steel products increasing by 0.67 percentage point year on year. The structure of steel products has continued to be optimized. In the first quarter, the output of steel bars for construction was 48.11 million metric tons, a decrease of 2.9%; the output of extra-thick plates, medium plates, coated plates and plated plates used in the manufacturing field increased by more than 10% year on year, with a total output of 38.84 million metric tons; and the output of crude steel has remained basically stable, reaching 259 million metric tons, a slight increase of 0.6% year on year.

In order to thoroughly implement the spirit of General Secretary Xi Jinping's important speech and promote the high-quality development of the industry, the MIIT issued the "Specifications for the Steel Industry (2025 Edition)" this February to accelerate transformation and improve quality. The new version of the specifications has three major changes:

First, the basic indicator requirements have been comprehensively improved. In combination with new requirements of relevant policies, and standards and specifications concerning market supervision, safe production, energy conservation and emission reduction, comprehensive updates and improvements have been made regarding basic indicator requirements for process equipment, environmental protection, resource consumption and safe production. For example, the pollutant emission indicators are clear, and the full-process ultra-low emission transformation will be completed and publicized from 2026. The safety production indicator has been adjusted from no occurrence of major or above production safety accidents to no occurrence of relatively large or above production safety accidents.

Second, leading indicators have been established. Indicators have been established to evaluate high-end, intelligent, green, efficient, safe and distinctive high-quality development. Taking high-end development as an example, a comprehensive evaluation of enterprises has been conducted from such dimensions as scientific research, quality, patents and standards, in order to measure the level of high-end development of enterprises, clarify development advantages and weaknesses, and provide clear guidance for further transformation and improvement of enterprises.

Third, tiered and classified evaluations have been carried out. Relying on the basic indicator and leading indicator evaluation system, we establish benchmarks for standardized enterprises and leading standardized enterprises. Through tiered and classified management of steel enterprises, we will guide enterprises to benchmark against advanced ones, undergo transformation and upgrading, and comprehensively improve the level of industry development.

Next, we will organize the implementation of the 2025 specifications for the steel industry, let the market play a decisive role, and follow policy guidance. We will accelerate the transformation and upgrading of the industry, let the "old tree" of the steel industry sprout new buds and regain vitality, bravely take the lead in promoting the new industrialization, and make greater contributions to Chinese modernization. Thank you.

Zhou Jianshe:

Due to the time limit, we will take one last question.