Maanshan Iron & Steel : Summary of 2016 Interim Results Announcement

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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

(Stock Code: 00323)

SUMMARY OF 2016 INTERIM RESULTS ANNOUNCEMENT §1 IMPORTANT NOTICE

1. This summary of 2016 interim results announcement is from the full text of the interim report. To fully understand the details, investors should read the full text of the interim report, which is also published on the Stock Exchange of Hong Kong Limited and the websites designated by the China Securities Regulatory Commission, including the website of the Shanghai Stock Exchange.

2. The interim financial reports of the Company are unaudited but reviewed by the Audit Committee of the Company.

3. Mr. Ding Yi, the person-in-charge of the Company, Mr. Qian Haifan, the person- in-charge of 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 interim report.

4. No appropriation of fund on a non-operating basis by the controlling shareholder or its related parties was found.

5. There is no violation of regulations, decisions or procedures in relation to provisions of external guarantees.

1.6 Company profile Type of shares Place of listing Stock abbreviation Stock code

A Share The Shanghai Stock Exchange Magang stock 600808

H Share The Stock Exchange of Hong Kong Limited

Maanshan Iron & Steel 00323

Contact people and details	Company Secretary	Representative for
Securities Affairs
Name	Hu Shunliang	He Hongyun
Telephone	86-555-2888158/2875251	86-555-2888158/2875251
Fax	86-555-2887284	86-555-2887284
Email address	[e-mail]	[e-mail]

§2 MAJOR ACCOUNTING DATA AND SHAREHOLDERS

1. The company's major accounting data

   Unit: RMB

   End of the reporting period

   End of the previous year

   Increase/ (decrease) at the end of the reporting period as compared over the end of the previous year (%) (Unaudited) (Audited)

   Total assets 59,565,048,326 62,454,465,955 decreased

   by 4.6 percentage points

   Net assets attributable to equity holders 18,955,533,931 18,455,838,015 increased

   by 2.7 percentage points

   Reporting period (Jan to Jun)

   Corresponding period of the previous year

   Increase/ (decrease) at the reporting period as compared to the corresponding period of the previous year (%) (Unaudited) (Unaudited)

   Net cash flows from operating activities

   527,215,501 4,628,267,978 -88.6

   Revenue 21,001,162,560 23,447,520,693 -10.4

   Net profit/(loss) attributable to equity holders of the Company

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

   Return on net assets (weighted average) (%)

   Basic earning/(loss) per share (RMB/share)

   Diluted earning/(loss) per share (RMB/share)

   452,752,971 -1,236,592,427 - 469,788,228 -1,345,735,510 - 2.42 -5.46 increased by 7.88 percentage points 0.059 -0.161 - 0.059 -0.161 -
2. Holdings of top ten shareholders

Total number of shareholders at the end of the reporting period (Accounts)

283,941

Holdings of top ten shareholders

Unit: Share

Name of shareholder

Type of

shareholders Percentage

(%)

Total number of shares held

Number of shares under restricted condition

for sales

Number of pledged or frozen shares

Magang (Group) Holding Co., Limited	State-owned shareholder	45.54	3,506,467,456	0	Nil	0
Hong Kong Securities Clearing Company	Foreign shareholder	22.21	1,710,144,900	0	Unknown	Unknown
Nominees Limited
Central Huijin Investment Ltd.	State-owned shareholder	1.85	142,155,000	0	Unknown	Unknown
China Securities Finance Corporation Limited	State-owned shareholder	1.14	88,096,538	0	Unknown	Unknown
Bosera Funds - Agricultural Bank of China	Unknown	0.44	33,609,200	0	Unknown	Unknown

(ABC) - Bosera China Securities Finance Asset Management Plan

GF Fund Management - ABC - GF China	Unknown	0.44	33,609,200	0	Unknown	Unknown
Securities Finance Asset Management Plan
ICBCCS - ABC - ICBCCS China Securities	Unknown	0.44	33,609,200	0	Unknown	Unknown
Finance Asset Management Plan
Harvest Fund - ABC - Harvest China Securities	Unknown	0.44	33,609,200	0	Unknown	Unknown
Finance Asset Management Plan
Dacheng Fund - ABC - Dacheng China	Unknown	0.44	33,609,200	0	Unknown	Unknown
Securities Finance Asset Management Plan
E Fund - ABC - E Fund China Securities	Unknown	0.44	33,609,200	0	Unknown	Unknown
Finance Asset Management Plan

Notes on the above

shareholders' affiliated

relation or concerned action

Magang (Group) Holding Co., Ltd. has no affiliated relation with any of the other foregoing shareholders, nor is it a person acting in concerned action; however, it is not in the knowledge of the Company whether there is any affiliated relation among other foregoing shareholders and whether they are persons acting in concerned action.

§3 MANAGEMENT DISCUSSION AND ANALYSIS

1. Board's discussion and analysis on operation during the reporting period
2. The macro environment for production and operation

   During the period under review, China's overall national economic performance remained steady. GDP grew by 6.7%, down 0.3 percentage point compared with the same period of last year; while fixed asset investment across the country grew by 9%, down 2.4 percentage points compared with the same period of last year. Although both production volume of and demand for steel products in China decreased, as the reformation in the supply side started to show initial results, gradual improvement could be seen in the balance between the demand and supply in some parts of the country, leading to a significant increase in steel price. At the end of April, due to a rapid increase in crude steel output, steel price declined rapidly thereafter. The consolidated price index for domestic steel products as at the end of June was 68.69 points, up 3% compared with the same period of last year, or

   12.32 points up over that as at the end of last year, representing an increase of 21.86%. According to China Iron and Steel Association (CISA), member companies posted an average profit margin of 0.97% in the first half of this year, indicating a year-on-year improvement, but it was still at a relatively low level in the industrial sector.

   As for imports and exports, according to CISA, exported steel products during the first half of 2016 amounted to 57,120,000 tonnes, an increase of 9% compared with the same period of last year, while imported steel products amounted to 6,460,000 tonnes, a decrease of 2.8% compared with the same period of last year. The net export of equivalent crude steel amounted to 52,550,000 tonnes, an increase of 10.7% compared with the same period of last year.

3. Production and operation of the Company

4. During the reporting period, the Company has seized the favorable market opportunity, vigorously adjusted our product structure, looked into the potential to increase cost efficiency, enhanced the level of lean operation and achieved a turnaround in our results.