Since the launch of the benchmarking and improvement campaign—“Curb Complacency, Break New Ground, Strive for World-Class Excellence, and Scale New Heights”—Wugang Company has set its sights on industry leaders, achieving “four breakthroughs” and implementing “four pursuits of excellence.” The company has continuously strengthened foundational management, raised performance standards, and cultivated a pragmatic work ethic, inspiring all cadres and employees to tackle tough challenges, deliver results through hard work, and strive to meet and exceed the year’s targets. To further advance this benchmarking initiative, building on an initial series of six insightful commentaries, we are now releasing four additional articles for all cadres and employees to study and reflect upon. We call on everyone to align their thinking, press ahead with greater determination, unite in purpose, pool our strengths, and use intellectual breakthroughs to drive transformative action. By shouldering our mission and striving for excellence, we will translate the outcomes of this benchmarking effort into a powerful engine for the company’s high‑quality development.

Series Commentary No. 7

Better to die with a voice than to live in silence.

At the company’s recent routine production and operations meeting, Lu Jiangguang, Party Secretary and Chairman of the company, emphatically stressed that all cadres and employees must keep in mind the timeless maxim, “Better to die with a voice than live in silence,” discard complacency and carelessness, abandon illusions, proactively adjust their work mindset, strengthen accountability, and rigorously ensure effective implementation. By adopting the highest standards of conduct and taking the most practical measures, they must confront the challenging market environment and make every effort to drive the company’s high-quality development. This earnest exhortation serves not only as a powerful ideological call to action for all cadres and employees but also as a clear roadmap for embedding the special‑steel ethos and culture deeply within the organization.

“The phrase ‘better to die with a cry than to live in silence’ originates from Fan Zhongyan’s “Ode to the Spirit Crow” of the Northern Song Dynasty, embodying the author’s original aspiration and unyielding integrity in serving the nation. Its core message is this: never settle for mediocrity; never adopt a passive, complacent stance; never remain silent or slack off; and never go through the motions. In our respective posts, bearing our responsibilities, we must confront difficulties without evasion, address problems without concealment, and shoulder accountability without shirking. We should always dare to speak out and take decisive action, face contradictions head-on, and proactively assume responsibility—preferring to strive vigorously and rise to challenges rather than drift aimlessly and passively endure each day. For Wugang, against the backdrop of fiercely competitive steel markets and a severe, complex economic environment, this principle serves as the guiding standard for all cadres and employees. It is the spiritual essence that enables us to break through developmental bottlenecks, unleash endogenous momentum, and consolidate our advantages in the specialty‑steel sector.

By putting into practice the principle of “better to die with a voice than to live in silence,” we must adjust to our optimal working state. The first and foremost step is to squarely face the严峻 situation, firmly uphold our confidence in development, and cast aside any complacency. At present, the steel industry is fiercely competitive, market conditions are highly volatile, and pressures to cut costs and reduce expenses are mounting, posing multiple challenges to corporate growth. Yet every challenge harbors opportunity, and it is precisely under pressure that true responsibility and resolve come to the fore. As a leading domestic producer of wide‑and‑thick plates, Wugang has been deeply committed to the specialty‑steel business for more than 50 years, boasting proprietary process technologies, a portfolio of high‑end products, and strong capabilities to support major engineering projects. Moreover, it benefits from a robust management system and a dedicated, action‑oriented workforce—these are the very sources of our confidence as we anchor ourselves in the market and strive to break through against headwinds.

By putting into practice the principle of “better to die with a voice than to live in silence,” and by optimizing our work posture, the key lies in proactively shouldering responsibilities, firmly upholding the boundaries of our duties, and eliminating procrastination and perfunctory attitudes. The admonition “Don’t let minor issues fester into major ones, nor let major problems escalate into disasters” precisely highlights the most glaring weaknesses in everyday management. The hidden risks stemming from lax oversight may seem trivial at first, but over time they can morph into quality concerns, safety hazards, and efficiency gaps—impeding the company’s progress toward high‑quality development.

All cadres and employees must stay committed to their respective duties, strive for excellence, and strictly adhere to process standards, quality specifications, and safety guidelines. They should earnestly implement the company’s “1144” working philosophy, break free from conventional thinking and complacent practices, ensure that every task is followed through and every matter is brought to a closed-loop resolution. We must resolutely reject perfunctory, sloppy, or procrastinating work styles, and, with the efficient execution of “get today’s work done today,” carry out each task meticulously, thoroughly, and with outstanding results.

Series Commentary No. 8

Sound the charge for the benchmarking offensive and hoist the sails of premium, first‑class excellence.

To achieve the production and operational targets for the second half of the year, the Group and its subsidiaries have launched a benchmarking and improvement campaign titled “Curb Complacency, Break New Ground, Strive for World‑Class Excellence, and Keep Scaling New Heights.” They have explicitly set a “high‑level, one‑tier‑higher” performance standard and integrated these攻坚 objectives into a company‑wide performance‑evaluation system—“one person, one form”—to compel all employees to break free from conventional thinking, set higher personal expectations, and drive the enterprise toward leading‑edge progress. This is not an unrealistic fantasy; rather, it is a management approach that benchmarks against world‑class standards and proactively embraces change—a practical pathway to dispel complacency and stagnation, and to unlock genuine value creation.

Looking at world-class enterprises, proactively raising their ambitions and imposing greater self‑imposed pressure is a common key to sustained growth. Amazon, ranked No. 1 on the Fortune Global 500, refused to settle for the industry‑standard two‑day delivery and instead set an even higher benchmark—aiming for one‑day and same‑day delivery—by building numerous same‑day fulfillment centers and reshaping its global logistics network, thereby reinforcing its leadership through continually elevating service standards. Meanwhile, Walmart, second on the Global 500 list, did not cling to its past performance when its traditional hypermarket model came under pressure; instead, it proactively optimized its supply chain, raised product quality standards, leveraged the proven expertise of membership‑based stores to develop private‑label brands, and drove store upgrades and transformations, achieving revenue growth even amid an industry downturn.

Leading domestic enterprises are equally well aware of the practical power embedded in “high‑end customization.” State Grid Corporation of China, ranked first among China’s Top 500 companies, has established a four‑tier benchmarking system. Rather than settling for basic performance targets, it has proactively set itself the goal of becoming a world‑class energy‑internet enterprise, cascading higher standards down to provincial, municipal, and county levels. Through transparent disclosure of key metrics and competitive benchmarking, it has continuously improved indicators such as power supply reliability and customer service quality, using ambitious goals to drive a comprehensive upgrade of its management practices. PetroChina, ranked second on the China Top 500 list, focuses on oil and gas exploration and development. Breaking free from conventional capacity‑building paradigms, it has raised its standards and boldly launched an assault on ultra‑deep oil and gas fields at depths exceeding 10,000 meters. Its grassroots oilfield units have instituted benchmarking ledgers, breaking down aspirational targets into individual job roles and implementing monthly evaluations and assessments. By relentlessly pushing itself, the company has overcome numerous technical challenges, thereby strengthening the foundation for ensuring a stable energy supply.

The practices of these enterprises teach us that clinging to existing goals will only sustain the status quo, while daring to set a higher benchmark can unlock new avenues for growth. In light of Wugang Company’s specific circumstances, thanks to the concerted efforts of all cadres and employees, several key performance indicators have achieved steady breakthroughs. However, it is important not to overlook the fact that some staff members harbor a complacent mindset—settling for modest gains and becoming content with the status quo—believing that their targets have already reached their ceiling and contenting themselves with merely meeting the established budget, thus lacking the courage to strive for further improvement. This very issue is precisely what this benchmarking and enhancement initiative seeks to address.

Implementing the “high‑level benchmarking” approach cannot rely merely on subjective guesswork or arbitrary numerical adjustments; it requires addressing five critical questions: “who to benchmark against, what to benchmark on, how to benchmark, how to follow up, and how to verify.” We must identify industry‑leading benchmarks and conduct comparative analyses across key metrics such as energy consumption, production efficiency, product quality, and cost control, clearly pinpointing gaps and weaknesses. Ambitious targets should be translated into specific responsibilities at the individual and team levels, integrated into a company‑wide performance‑evaluation system that assigns each employee a personalized scorecard, and supported by an enhanced “dual‑leadership, three‑lists” action plan. This ensures closed‑loop management of objectives, accountability, measures, and performance assessment.

To implement the “set a higher benchmark for one tier,” we must refine the mechanism for publicizing and comparing performance, fostering a strong culture of emulation and continuous improvement. By regularly publishing key performance indicators, we will ensure that top performers are recognized and rewarded, while underperformers face appropriate accountability, thereby breaking the status quo where there is little distinction between good and poor results. We will base evaluations on data and link rewards and penalties to actual outcomes. Leading cadres should take the lead in embracing more ambitious targets, setting an example from the top down, overcoming path dependency, and motivating all employees to tackle challenges at their posts, embedding the “four extremes” into every stage of production and operations. Of course, setting a higher benchmark does not mean pursuing unrealistic goals; rather, it requires grounding our efforts in the realities of the special‑steel sector. We must dare to take on tough challenges while formulating pragmatic measures to support them—achieving our objectives through technological breakthroughs, management optimization, and process improvements. By ensuring that these ambitious targets are effectively implemented, we can secure the attainment of our annual goals and deliver dual gains: enhanced corporate performance and increased employee incomes.

Only by resisting complacency can we maintain steady progress, and only by striving for further advancement can we achieve world‑class excellence. We must cast aside the mindset of seeking stability at all costs and adopting a passive, “lying flat” attitude; instead, we should embed the principle of “setting the bar one level higher” in our thinking and translate it into concrete actions. With higher standards and a more pragmatic work style, we will address our weaknesses and strengthen our areas of strength, sprint toward the year’s goals and tasks, and vigorously propel the company’s high‑quality development.

Series Commentary No. 9

Customer-centricity

The market serves as the ultimate test of our products, and our customers are partners in our journey of growth. Recently, Lu Jiangguang, Party Secretary and Chairman of the company, led a delegation to visit key high-end clients, engaging directly with them to understand their needs and collaboratively explore avenues for cooperation. By turning “customer-centricity” into concrete action, he set an example for all managers and employees. In light of the Group’s and the company’s ongoing benchmarking and improvement initiative—“Curb Complacency, Break New Ground, Strive for World-Class Excellence, and Scale New Heights”—we must further embed a customer‑oriented approach across the entire value chain, from production and technology to sales and service. Internally, we will strengthen management; externally, we will expand market reach. With unified resolve and collective effort, we will forge ahead toward our corporate vision: to build the most competitive, industry‑leading enterprise in the wide‑thick plate sector.

With customer needs at the heart of everything we do, we must step out of the office and proactively engage with the front lines of the market; we must break free from conventional thinking and actively listen to our customers’ voices; and we must challenge established practices to tackle real‑world challenges head‑on. Customer recognition is never handed to us—it is earned through hard work and results. During our outreach, customers have consistently praised Wugang’s steel plates for their consistent quality and reliability, noting that they meet the stringent material requirements of high‑end equipment. This trust has been hard won; it not only acknowledges our past achievements but also serves as a powerful motivator for the road ahead. In today’s fiercely competitive market, standing still means falling behind—and even moving slowly is a form of retreat. As industry trends surge forward, if we cannot retain our customers, we will lose our orders; if we fail to anticipate and address evolving needs, we will miss out on the future.

Looking around the world, the growth trajectories of leading companies repeatedly confirm this principle. A steelmaker among the Global 500 has consistently aligned itself with customer needs, closely monitored shifts in downstream industries, and iteratively refined its product portfolio based on market feedback. By addressing customers’ pain points, it has continuously optimized its processes and ensured timely delivery, thereby solidifying its market foothold through attentive service. Meanwhile, one of our key clients remains firmly customer‑centric, treating customer challenges as its own priorities, swiftly responding to customized requirements, and leveraging technological collaboration and seamless coordination to achieve leapfrog growth. These benchmark enterprises demonstrate through their practices that only when a company keeps its customers at the forefront can it secure a broad stage for success; and only by aligning its actions with customer needs can it generate powerful momentum.

Benchmarking against industry leaders, we must deeply recognize that putting customer needs at the center is not a one‑man show for the sales department—it is a concerted effort across the entire organization. The marketing function must take the lead, conducting more field visits and actively listening to gain insights into customer expectations and market signals. The R&D team should proactively align with downstream trends in new energy, environmental protection, and mining equipment, driving innovation around customer needs and tackling technical challenges based on real‑world applications. Production units must step up their accountability, rigorously controlling product quality, optimizing production scheduling, and ensuring every steel plate meets the highest standards of precision and excellence. Meanwhile, the functional support departments must enhance their service orientation, address capability gaps, streamline operational bottlenecks, and provide robust support to ensure timely order fulfillment, technological empowerment, and seamless logistics.

Customer needs must be at the heart of everything we do—embedded in every production process, reflected in every steel plate, and demonstrated in every service interaction. If a single steel plate fails to meet quality standards, we lose our customers’ trust; if delivery reliability falls short, we damage our company’s reputation; and if we shirk responsibility for unresolved issues, we forfeit valuable market opportunities. Our company’s monthly special initiatives to galvanize team spirit are designed precisely to address management gaps and strengthen our overall capabilities, earning customer confidence through superior products, dependable deliveries, and attentive service.

Faced with a severe and complex market environment, there are no windfall orders, nor any one‑time, permanent partnerships. Every customer request points to areas where we must improve and excel; every market shift presents an opportunity for us to tackle challenges and break new ground. We cannot afford to passively wait for customers to voice their needs—we must take the initiative, accurately anticipate their latent requirements; we must not settle for products that merely “work,” but strive for solutions that are both “easy to use” and “durable”; and we must go beyond mere order fulfillment to deliver comprehensive, full‑cycle technical support. Through a series of field visits, our collaboration with customers has formalized a regularized mechanism for technical coordination, advanced joint R&D on new materials, and expanded the application scope of specialty steel plates—exemplifying our proactive pursuit of change and our shared commitment to sustainable development.

Series Commentary No. 10

Work with dedication and passion; all employees innovate to create value.

Recently, the company convened an economic performance review meeting to thoroughly implement the spirit of the Group’s series of meetings, anchor itself in the goal of high-quality development, and explicitly call for abandoning illusions, working with dedication and commitment, breaking through four barriers, and achieving four levels of excellence. By adopting high-standard management, pursuing high-quality innovation, and ensuring highly efficient execution, the company is steadily advancing all its initiatives.

Looking across the global steel industry, the success stories of ArcelorMittal, a Fortune Global 500 company, and leading domestic enterprises alike clearly demonstrate that a company’s breakthrough and rise never hinge solely on capital investment in equipment; rather, they stem from the dedicated, meticulous efforts of every employee—rooted in heartfelt commitment and an unwavering pursuit of excellence. As the times propel us forward and our mission calls for responsibility, all employees and cadres at Wugang must remain grounded in their roles, deepen their practical work, fulfill their duties with care, and devote themselves wholeheartedly to their tasks. Only then can we overcome development challenges, unleash endogenous momentum, and stride confidently toward the goal of building the most competitive, industry‑leading enterprise in the wide‑thick plate sector.

To work with dedication and heartfelt commitment, the first step is to break free from mental constraints and abandon unrealistic expectations. Ideas guide action, and sound principles underpin development. As a global steel industry leader, ArcelorMittal has discarded the ingrained mindset of “heavy investment, light management,” vigorously implementing meticulous on-site management and driving continuous improvement across the organization to reduce costs and expenses, thereby reinforcing its leading position in global competition. Meanwhile, a benchmark domestic enterprise has focused on cost optimization—not by simply pouring more resources into operations—but by extracting greater efficiency through refined management, achieving substantial reductions in end-to-end costs and charting a path toward lean, sustainable growth. Today, competition in the steel sector is intensifying; market rivalry has long since moved beyond crude capacity expansion to center on sophisticated management, cutting-edge technological innovation, and uncompromising quality. Compared with these industry leaders, we must fundamentally overturn the conventional notion that “progress comes from spending money, not from improving management,” shedding complacent mindsets and the apathetic attitude of settling for the status quo. We must recognize clearly that leading companies rely on precise control to drive down costs and on scientific management to enhance quality and productivity—rather than merely piling on investment to expand capacity or sacrificing resources in exchange for short-term gains. At the same time, we need to squarely confront our own shortcomings: unstable efficiency in certain processes, elevated product costs, and technical upgrades that have yet to deliver the expected results. Only by proactively breaking with the old and embracing the new, benchmarking against best practices, and fostering a company-wide shift in thinking and working methods can we overcome developmental bottlenecks and use a breakthrough in mindset to catalyze transformative action.

Working with dedication and heartfelt commitment hinges on deepening technological innovation and solidifying the foundation of quality. Technology is the primary productive force, and quality is the lifeblood of any enterprise. Leading companies leverage large-scale digital models to empower quality management, embedding meticulous research and execution into every stage of R&D and production. This has dramatically shortened new‑product development cycles, building robust competitive barriers in the specialty steel sector through technological advancement. A domestic industry leader encourages all employees to pursue small improvements and innovations, valuing the wisdom of frontline workers. Numerous practical ideas originating from shop‑floor staff have been transformed into tangible economic benefits, fostering company‑wide participation in innovation and value creation. In the high‑end specialty steel arena, success depends on technology, victory rests on quality, and sustainability relies on innovation. We must deepen our expertise in technology management and concentrate our efforts on tackling key technical challenges. Addressing the pain point of high costs for premium wide‑and‑thick plates, we will optimize processes to resolve cost constraints and enhance product performance through technological breakthroughs—prioritizing precision over complexity while reducing both expenses and costs. We will steadfastly uphold the “zero defects” philosophy, closely monitor critical issues, systematically analyze root causes at every level, and address each weakness one by one, ensuring a rigorous, meticulous, and pragmatic approach throughout the entire production process. Furthermore, we will focus on upgrading technologies to improve quality and boost efficiency, harnessing the core advantages of new equipment and advanced processes. By ensuring that every technological upgrade delivers measurable results and that each innovation strengthens production, we will further consolidate the company’s core competitive edge.

Working with dedication and heartfelt commitment hinges on honing professional expertise and strengthening a sense of responsibility and proactive action. Every position carries responsibility, and fulfilling one’s duties requires full accountability. ArcelorMittal upholds the principle of “visible, tangible leadership,” with managers descending to the production floor and engaging directly on site, ensuring that responsibilities are firmly assigned to every role. This approach empowers all employees to proactively identify risks and resolve on‑site issues, turning professional competence into a solid foundation for stable production. A leading domestic enterprise has implemented a “race‑horse mechanism,” encouraging specialists to handle specialized tasks, igniting enthusiasm across the workforce, and fully unlocking the value of each position—allowing it to maintain strong operational performance even during industry downturns. Every breakthrough and every step forward in corporate development is underpinned by the unwavering professionalism and pragmatic commitment of all employees. We must continuously refine our professional capabilities, dispel any fear of inadequacy, and squarely address persistent challenges such as difficult-to‑resolve production‑line issues and lack of solutions for equipment malfunctions. By diligently studying our trade and rigorously honing our skills, we can ensure that specialists excel at their core responsibilities and deliver outstanding results.