Baosteel Co., Ltd. Issued the Sustainability Report for 2006

Baosteel Co., Ltd. issued the Sustainability Report for 2006 a few days ago. The report represents the pursuit of the harmonized development of the nature and the society by Baosteel Co., Ltd. and its endeavors and contributions in environment protection and the development of cycle economy. The report also described in brief the production operation condition of the past year.

In recent years, many large-scale enterprises at home and abroad issued successively environment reports to present the responsibilities they shoulder to the society and the environment. Following the environment report of 2003 and 2004, Baosteel Co., Ltd. integrated in the report the contents on economy and society and changed the name to "Sustainability Report" in 2005.

Being the second sustainability report issued by Baosteel Co., Ltd., the current report transfers to the public the information on the cares to the society, environment protection and economic development of the corporate in accurate and transparent way to further enhance the understanding and relation between the society and the enterprise.

The 2006 report is 80% longer than the previous one, with more detailed contents, disclosing all the indices regarding corporate operating performance, environmental achievement and social responsibilities: in 2006, the sales volume of commercial semi-finished steel of Baosteel Co., Ltd. increased by 14% over the previous year; and the sales revenue, total profit and net profit increased by 24.

6%, 3.8% and 2.7% respectively over the previous year. As the production performance is increasing steadily, Baosteel Co., Ltd. pursues clean production as always, trying to reduce emission and raw material input. The energy-saving process adopted had significant effect: the total volume of recuperated excess energy in 2006 reached 1,376,000 ton coal equivalent, realizing energy saving of 352,000 ton coal equivalent.

The energy consumption against output value reduced by 11.85% compared with 2005. In cycle economy development, the comprehensive utilization rate of various industrial solid redeposit resources by Baosteel Co., Ltd. is 98.32% last year, among which the utilized volume returned to production accounts for 22.

48% of the total volume of the solid redeposit resources, the best level in recent years with a substituting benefit of RMB1,024,000,000. The circulation rate of production water of all the branches and affiliates of Baosteel Co., Ltd. reaches 97%. At the same time, committed to the basic value of "integrity", Baosteel Limited endeavors to establish a harmonized relation with the employees, investors, suppliers and users.

It takes the establishment of a harmonized society as its own responsibility and donated RMB23,290,000 in total to outside last year.