Recently, the Beijing Foreign Exchange Administration Department of the State Administration of Foreign Exchange approved Shougang Group Finance Co., Ltd. to carry out ‘multinational companies' foreign exchange funds centralized operation and management business’. The Company is allowed to carry out the domestic collection of overseas foreign exchange funds, centralized management of domestic and foreign exchange funds, centralized deployment of foreign debt and external lending limit, and centralized collection and payment under regular items.

As the company in charge of the centralized operation and management of multinational companies' foreign exchange for the Group, Shougang Group Finance Co., Ltd. has a total of 15 member units (10 domestic and 5 overseas) in the scope of the centralized management of foreign exchange funds. This indicates that Shougang Group Finance Co., Ltd. provides a channel for the Group's centralized operation of foreign exchange funds. In the future, it can change the management mode of independent and dispersed foreign exchange funds of member units, adopt a model combining centralization and decentralization, flexibly arrange foreign exchange funds and construct an intensive capital centralized operation and management system with the multinational business group as the subject. It will help the Group to improve its foreign exchange management level and enhance the cross-border liquidity of its foreign exchange funds, while increasing its capital income and improving its foreign exchange management and risk management in the future.