Guangdong Zhongnan Iron & Steel Co., Ltd.

Guangdong Zhongnan Iron & Steel Co., Ltd. is a publicly listed company on the Shenzhen Stock Exchange, established with the approval of the Guangdong Provincial Government in 1997. Originally launched by the Guangdong Shaoguan Iron & Steel Group, the company became a subsidiary of China Baowu Steel Group Corporation Limited in 2012. It specializes in the manufacturing, machining, and sales of iron and steel products, as well as coke and coal chemical products. The company also engages in technical development, consulting services, and the import and export of various materials and technologies. As the largest iron and steel manufacturing enterprise in Guangdong Province, Guangdong Zhongnan operates multiple blast furnaces and converters, with a significant annual production capacity for rolled products. The company holds approximately 15% of the crude steel market share in the province and is well-positioned to meet the high demand for steel products, particularly in long products, where it ranks first in production capacity. Its products are utilized in major infrastructure projects, contributing to its strong brand reputation and market presence.

The company has realized the stable and smooth production of the blast furnaces, with the molten iron cost at the low level in the industry, by management reform, such as improving the performance appraisal system, deepening the “post faultfinding, post benchmarking, and post improvement” standardization promotion activities, built the three-level benchmarking system as well as the management means, such as eliminating the low-efficiency production capacity, improving the production line efficiency, organizing the production and operation with the maximum marginal contribution, and optimizing the purchasing mode; the coke self-supply rate is up to 100%, thus effectively resisting the risk of the coke price fluctuation; grasp the steel scrap market situations and reduce the iron-steel ratio to about 850kg/t. The personnel efficiency has been significantly improved through management optimization. In 2022, the number of the employees was reduced to 5,258, and the steel production per capita is about 1300t. In Guangdong Province, the gap of the long products is up to about 20.00 million tons, the steel price is higher than that in the northern and eastern China regions, and the price has higher sensitivity and bigger flexibility for profit-making. The production capacity of the long products of the company ranks the No. 1 in Guangdong Province. The company has the strong brand advantage and has certain pricing right. In addition, with the help of the Ouyeel platform, the direct sales ratio is about 70%, the price adjusting period is not fixed, and the sales policy of payment before delivery is practiced. The company actively participates in the direct supply and sales of the products for the key projects, and the products have been widely used in the key projects, such as Guangzhou Metro, Shenzhen Metro, Shenzhen Conference and Exhibition Center, and HongKong-Zhuhai-Macao Bridge, enjoying good market reputation.