Maanshan Iron & Steel : ANNOUNCEMENT ON ESTIMATED GROWTH IN PROFIT IN ANNUAL RESULTS OF 2020

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馬 鞍 山 鋼 鐵 股 份 有 限 公 司

Maanshan Iron & Steel Company Limited

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

（Stock Code: 00323）

ANNOUNCEMENT ON ESTIMATED GROWTH IN PROFIT IN

ANNUAL RESULTS OF 2020

This announcement is made by the board of directors (the "Board") of Maanshan Iron

• Steel Company Limited (the "Company") pursuant to Rules13.09 and 13.10B of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

1. ESTIMATED RESULTS DURING THE PERIOD
2. 1. Estimated results period: 1 January 2020 to 31 December 2020
   2. Estimated Results:
   3. 1. Based on a preliminary estimate by the finance department, the net profit of the Company attributable to the shareholders of the listed company for the year 2020 is estimated to reach approximately RMB 1.979 billion, representing a year-on-year increase of approximately RMB 851 million or approximately 75.44%.
      2. The net profit excluding non-recurring gains or losses attributable to shareholders of the listed company is estimated to reach approximately RMB 1.418 billion, representing a year - on - year decrease of approximately RMB 218 million or approximately 13.33%.
   4. The estimated results have not been audited by certified public accountants

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1. RESULTS FOR THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR
2. 1. The net profit attributable to the shareholders of the listed company: RMB 1.128 billion. The net profit excluding non-recurring gains or losses attributable to shareholders of the listed company: RMB 1.636 billion.
   2. Earnings per share: RMB 0.147.

1. MAIN REASONS FOR THE ESTIMATED PROFIT GROWTH OF THE RESULTS DURING THE PERIOD
2. 1. Impact of principal business
      In 2020, the Company strived to overcome the adverse effects brought by the COVID-19 pandemic, the flood season of the Yangtze River and the significant rise in the prices of raw materials, particularly iron ore, firmly seized the opportunities brought by the structural changes of the market, dynamically adjusted the business strategy, optimized the allocation of resources, accelerated the coordination between production and marketing, strengthened the system linkage, pursued the ultimate efficiency and released the scale of production capacity. Meanwhile, the Company increased growth driver through reform, promoted development with innovation, deepened integration, comprehensively identified gaps through comparing with other companies, fully unlocked the synergy effect with China Baowu, and continuously optimized major technical and economic indicators. Compared with the previous year, the Company's annual output of pig iron, crude steel and steel increased, showing a better business performance.
   2. Impact of non-recurring gains or losses
      The non-recurring profit or loss of the Company attributable to the shareholders of listed company for 2020 is approximately RMB 561 million, which was mainly due to the gain from the disposal of non-current assets, government subsidies, dismissal compensation for the termination of labor contracts through negotiation and other impacts. Compared with the same period of the previous year, the Company's non-recurring profit or loss attributable to shareholders of listed companies for 2020 had changed mainly because the amount of compensation for termination of labor contracts through negotiation for 2020 was significantly less than that of the corresponding period in the previous year.

IV. RISK DISCLOSURE

The Company considers that there is no material uncertainty affecting the accuracy of the estimated results.

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1. OTHER MATTERS
   The forecasts above are only preliminary estimates. For the detailed and accurate financial information, please refer to the audited annual report of 2020 to be formally disclosed by the Company. Investors are advised to pay attention to the investment risks.

The Board of Directors

Maanshan Iron & Steel Company Limited

29 January 2021

Maanshan City, Anhui Province, the PRC

As at the date of this announcement, the directors of the Company include executive directors Ding Yi, Zhang Wenyang, Ren Tianbao; non-executive Directors Qian Haifan; and independent non-executive directors: Zhang Chunxia, Zhu Shaofang, Wang Xianzhu.

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