Maanshan Iron & Steel Company Limited (the "Company"), currently one of the largest iron and steel producers and marketers in the PRC, is principally engaged in the manufacture and sale of iron and steel products. Our production process mainly comprises coking, sintering, iron smelting, steel smelting and steel rolling. The Company's principal steel products come in four major categories: steel sections, wire rods, medium or thick steel plates and train wheels and tyres, with a full range of models and specifications designed for a variety of applications. More than 90% of these products are sold in the domestic market.

In 2002, steel products accounted for 93.50% and 89.94%, respectively, of the Group's sales and profit from principal activities. Other products included coking by-products, gas products and scrap iron and steel, together accounting for 6.50% and 10.06%, respectively, of the Group's sales and profit. The Group's steel products accounted for an approximately 3% market share in China for year 2002. Analysed by markets, Anhui Province accounted for 35% of the Group's core business income; Jiangsu Province for 16%; Shanghai for 15%; Zhejiang Province for 8%; other provinces in China for 22%; and exports for 4%.

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