Board Chairman Liu Mingzhong Visit Baosteel Group Xinjiang Bayi Iron& Steel Co.,Ltd

On March 24^th, 2010, Board Chairman Liu Mingzhong visited Baosteel Group Xinjiang Bayi Iron & Steel Co.,Ltd (herein after Bayi ). During the visiting, Liu Mingzhong and the vice President of Baosteel Group, Board Chairman of Bayi held friendly talks.

Board Chairman Liu Mingzhong briefly introduced the development of XINXING PIPES GROUP(herein after XINXING ) in recent years, and the achieved results in the economic crisis year of 2009.During the meeting, he spoke highly of Bayi s achievement in technology and management innovation. Bayi has made great achievement in exploring flat-style management model, carrying out resources control strategy as well as participating actively in assets reorganization etc.

Especially after the reorganization with Baosteel Group, relying on its own technology management advantages, Bayi explores its sales model vigorously. The Mobile steel Supermarket marketing concept promotes the market share rising continuously, and achieved development by leaps and bounds under the environment of economic crisis.

Bayi is located in the northwest of China. As the pioneer in the steel industry in West China, it shoulders the task of promoting the economic development and social stability of Western China. The successful experience of Bayi is worth learning and also has important implication for the strategic development of XINXING in Xinjiang.

Board Chairman Liu Mingzhong said we cherished this learning opportunity and we would digest and absorb the good experience and good practice of Bayi and make progress as soon as possible. Board Chairman Liu Mingzhong also feel grateful for the thoughtful arrangement and warm hospitality of Bayi during the visit.

Board Chairman of Bayi Zhao Xia introduced the efforts in the reform and development, handling the crisis also maintaining the stability in recent years. He said, Bayi and XINXING are both state-owned enterprises, are both responsible for the dual tasks of national development and self-development.

Bayi has achieved success in technical innovation and sales model, while XINXING has made remarkable progress in enterprise management and personnel system reform. Both parties have cross-business areas and have their own unique experience and practice, which are worth the two sides to sum up and learn.

After the meeting, Zhao Xia accompanied Liu Mingzhong visited the historical site and steel plant of Bayi, also introduced the production and operation of Bayi.