Kang Ming, Sichuan Jinguang Industrail (Group) Co., Ltd. Driving stainless steel market in Western China through building industrial parks

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1 Kang Ming, Sichuan Jinguang Industrail (Group) Co., Ltd Driving stainless steel market in Western China through building industrial parks

2 First of all, on behalf of Sichuan Jinguang Industrial (Group) co., LTD., I would like to thank the conference organizers for providing us with a platform to exchange views, and to seek common development. I. Strengthening our stainless steel industry steadily II. Taking advantage of industrial chain to form industrial park III. Driving stainless steel market in Western China through building industrial parks

3 Group Introduction Sichuan Jinguang Industrial (Group) co.,ltd., is an enterprise integrating business of nickel, chromium and manganese mining, ferroalloy smelting and stainless steel manufacturing. The company was found in March,1990. After 20 years of development, its annual stainless steel production capacity reached 1.5m tons. The current number of employee is over The annual revenue of Y2013 is nearly RMB Yuan 20 billion.

4 I. Strengthening our stainless steel industry steadily --- Strengthen the main business On the basis of strengthening the main business of stainless steel, Jinguang group has been gradually realizing the diversified development strategy into finance and energy sectors under the new situation. After 20 years of development, adhering to the core values of Achieving symbiotic co-prosperity through benevolence, the Group gradually extended the stainless steel industry chain, successively completed the investment projects of Sichuan Southwest Stainless Steel Co, LTD, Guangxi Jinyuan Nickel Industry Co, LTD and the Guanghan Tiancheng Stainless Steel Products Co, LTD Entering the new era, in order to realize the diversified development strategy, we are preparing to establish a logistic company, invested and set up an energy company and a financial company.

5 I. Strengthening our stainless steel industry steadily --- Strengthen the main business In terms of product technology and management pattern, we have been building long-term cooperation with domestic universities and national iron and steel research institutions. In the meantime, we have been strengthening exchanges and communications with domestic and foreign counterparts. Management Pattern: Study from other advanced companies, improve technology and management standard. Technology Breakthrough: Recruit industry experts and young talents, set up taskforce to breakthrough technical bottlenecks and to improve technical standard. Quality Improvement: In the process of continuous learning, we gained advancement in technology and improvement in product quality.

6 BaoSight Naval aeronautical engineering institute Supor company in wuhan Baosteel NSSC Chao an stainless steel industry association Jiangsu Yongjin metal technology co., LTD GE annual meeting

7 II. Taking advantage of industrial chain to form the industrial park ---building the largest stainless steel industrial park in Southwest China In the recent years, many industries such as automobile, chemical and IT have been shifting manufacturing base to West China, resulting in rapid growth of stainless steel demand. Jinguang group is cooperating closely with local government to build the largest stainless steel industrial park in Southwest China on the basis of Guanghan Tiancheng Stainless Steel Co Ltd. Tiancheng Project:Relying on its 400ktpy stainless steel processing capacity, the group takes advantage of raw material to develop stainless steel cold rolling and processing projects, and to extend the industrial chain. Industrial park: Based on Tiancheng CR project, the group is cooperating with local government to build a stainless steel industrial park, integrating manufacturing and trading.

8 Guanghan Tiancheng Stainless Steel Products Co., LTD., In September 2013, Guanghan Tiancheng stainless steel project was officially put into production after CR mill and A&P line were up and running. Currently, its products have been sold to domestic and international market, and product quality has been gradually recognized by the majority of users.

9 Positioning of Jinguang Stainless Steel Industrial Park The industrial park will be based on stainless steel materials and products, integrating trading, warehousing, R&D, offices, meeting and training functions. It aims to become the high-end stainless steel and new material hub in Southwest China as well as the important non-ferrous metal exchange center in West China. The industrial park is located in Guanghan, Sichuan province, covering an area of square meters. Jinguang Group plans to invest more than RMB Yuan 100 million to build the park. After completion, the park is expected to realize an annual output value of RMB Yuan 50 billion.

10 Development Objective of Jinguang STS Industrial Park Development objective based on the industrial park: leader of the region, first class in the country, international renowned ; Development objective based on overall city development: Beautiful ecological environment, good service facilities, pastoral industrial town

11 III. Driving stainless steel market in West China through building industrial parks Chengdu-Chongqing region is the heavy equipment manufacturing base of West China. Stainless steel consumption in petrochemical, brewery, energy, automotive and other fields there has been growing fast. As the only stainless steel coil producer in this area, Sichuan Jinguang Industrial (Group) Co., Ltd enjoys its regional advantage. With the establishment of the industrial park, Jinguang Group will work together with many other enterprises to form a 集约化 intensity 规模化 Scale 生态化 Eco- 集群化 Cluster 特色化 Characteristic 品牌区域化 regional large-scale stainless steel cluster with full product variety and strong correlation. With its base in Chengdu-Chongqing, the cluster aims to serve West China and expand to the nation. The industrial park will effectively integrate West China s stainless steel market, take full advantage of the western region and its stainless steel consumption, and contribute to the economic development of West China.

12 Thank You!