Sinosteel Luonai has thoroughly implemented the deployment requirements of China Baowu and Zhonggang Group on bidding and procurement, using the Baohua bidding platform as a carrier and the "three focuses, seven measures" as the outline. Through innovative procurement models, strengthened market research and judgment, and deepened collaborative cooperation, it has achieved positive results in bidding cost reduction, process optimization, supplier management, and other aspects.

Three focuses to enhance procurement efficiency

 Focus on expanding the scope of collaborative procurement. Expand procurement collaboration with enterprises within the group, fully leverage the economies of scale of bulk procurement, and achieve new breakthroughs in procurement cost reduction. Focus on upgrading supplier management. Revise the "Supplier Management Measures" and "Material Supplier Management Measures", further improve the supplier management system, continuously optimize the supplier resource pool, increase the frequency of on-site inspections, and prevent potential quality risks from the source in advance. Focus on the process efficiency revolution. According to the "Internal Rights and Responsibilities List for Procurement Matters", further clarify the procurement rights and responsibilities, actively communicate and adjust with various responsible units to simplify redundant nodes in response to problems discovered during operation.

Seven Measures to Stimulate New Vitality of Cost Reduction in Tendering

Faced with the characteristics of a wide variety of raw materials, large price fluctuations, and scattered suppliers in the refractory industry, China Steel Luonai started with mechanism optimization and used the "seven measures" to launch a "combination punch" of bidding and procurement cost reduction.

Adhere to the principle of "recruiting as many as possible and recruiting as many as possible". On the basis of strictly implementing the bidding requirements of China Steel Group, further improve the bidding management requirements and tighten the quota. In the first quarter of 2025, 125 project procurement bidding work including raw materials, packaging, transportation services, and project construction will be completed on the Baohua platform, with a total procurement amount of 520 million yuan. The bidding ratio for the group's designated bidding projects will reach 129%, achieving a nearly 10% capital saving rate. Implement a long-term advance notice mechanism for bidding of raw materials. By releasing procurement plans in advance through the Baohua platform and attracting new suppliers to participate, 10 new suppliers will be introduced in the first quarter of 2025, contributing to a cost reduction of over 1.54 million yuan. Accurately grasp the market and implement quantity based bidding. Timely tracking of material usage requirements in various work areas, reasonable planning of procurement pace, and concentrated release of procurement demand during low price periods. In the "Labor Competition to Improve the Group's Required Bidding Proportion" of Baowu Group, a certain raw material procurement of the company was awarded the Excellent Case Award for Bidding Procurement. Single source procurement dynamic negotiation reduces costs. Single source procurement is carried out through a dual wheel drive model of market research and price negotiation, and the proportion of single source procurement is gradually reduced by introducing alternative suppliers. Directly sourcing auxiliary raw materials to reduce costs and increase efficiency. Optimize the supply chain hierarchy, expand the proportion of direct procurement, and achieve a cost reduction of 2.39 million yuan through centralized procurement for packaging material projects by 2025. Deepen internal collaborative procurement within the group. Fully leverage the scale effect of bulk procurement, actively organize various units to carry out centralized procurement, including centralized procurement of silicon carbide series raw materials, achieving a reduction of about 100 yuan/ton in silicon carbide procurement prices and a cumulative cost reduction of 400000 yuan. Accelerate and increase efficiency in platform construction. With the strong support of company leaders, the Luoyang branch of Baohua Anhui Branch was officially established at the end of March. Baohua Anhui Branch dispatched evaluation engineers to provide solid support for the high-quality operation of the procurement bidding work of Sinosteel Luonai.

Sinosteel Luonai will further implement the requirements of the group's bidding and procurement, strive to build a market-oriented, standardized, and digital procurement ecosystem, and help enterprises achieve high-quality development.