OREANDA-NEWS. April 02, 2013. Major items of the agenda adopted were:

1. 2012 financial results

CSC's operation results in 2012: revenues NTD 207,193 million, income before income tax NTD 6,131 million, net income NTD 5,811 million, earnings per common share (after tax) NTD 0.38.

2. Appropriation of distributable earnings for 2012

CSC’s distributable earnings for 2012 are NTD 7,706 million including the listed unappropriated earnings from special reserve. Dividends will be appropriated according to CSC's Articles of Incorporation.

In addition to the appropriation of distributable earnings for legal reserve, compensation to directors and supervisors and bonus to employees, the meeting suggested to appropriate NTD 1.40 per share (stock dividend NTD 0.1 and cash dividend NTD 1.3) for dividends of preferred stocks and NTD 0.5 per share (stock dividend NTD 0.1 and cash dividend NTD 0.4) for common stocks. The above resolutions will be proposed at stockholders’ meeting on June 19, 2013.

3. Capital increase from earnings in 2012

The meeting resolved to appropriate NTD 1,531,074,450 from the distributable earnings in 2012 as a capital increase for replenishment of CSC’s working capital. 153,107,445 common shares with NT\\$10 par value will be issued in one time. The rights and obligations of new shares are the same as current common shares.

4. Revamping portion of staves for No.1 blast furnace

This project is to maintain the production capacity of No. 1 blast furnace. Major revamping items include portion of staves, cooling plates and needed repairs. The project will commence in April 2013 and is scheduled for completion in June 2015. Total investment amount is estimated to be NT\\$1,300 million.

5. Addition of quenching plate equipment for plate mill

The direct quenching plate which will improve CSC’s competitiveness is a product of hi-tech threshold and high value added. It will increase 1,700 metric tons of quenching plates per year for CSC when the project completes. The project will commence in April 2013 and is scheduled for completion in August 2015. Total investment amount is estimated to be NTD 2,180 million.

6. Construction of titanium and nickel alloy finishing line

Titanium and nickel alloy materials are good for high temperature resistance, low temperature resistance, strong acid resistance, alkali resistance, high strength and low density, as well as being popularly used in the industries of aerospace, biomedicine, petrochemical and electronics. In order to promote competitiveness of products, CSC will invest NT\\$1,818 million in the construction of titanium and nickel alloy finishing line with 7,767 metric tons of annual production capacity. The project will commence in April 2013 and is scheduled for completion in June 2015.

7. Joint venture with Rechi Precision Co., Ltd. to establish a brushless direct current motor company

Brushless direct current motor has the properties of noiseless, low wear and long life cycle. Its highly efficient output is especially excellent in energy saving, environmental protection and motor efficiency. In order to expand and develop electrical sheets and raise the added value of iron oxide powder, CSC plans to invest NT\\$400 million in the establishment of a brushless direct current motor company through the joint ventures with Rechi Precision Co., Ltd., motor distributors and key component partners. CSC’s ownership in the new company will be 25%. The new company will set up plants at Pingtung Export Processing Zone in Taiwan and Jiujiang, Jiangxi, China respectively. Annual production capacity of motors will be 24 million sets. Pingtung plant will be positioned as the design and R&D center.

8. To participate in cash capital increase of Kaohsiung Rapid Transit Corporation
Kaohsiung Rapid Transit Corporation’s (KRTC) board meeting has resolved to increase capital by NT\\$1,500 million. CSC’s board meeting approved a ceiling of NT\\$806 million to participate in KRTC’s capital increase in order to help KRTC’s operation and fulfill social responsibilities.

9. Date and venue for CSC's 2013 shareholders' meeting
Date: June 19, 2013 (Wednesday) 9:00 a.m.

Venue: CSC Auditorium (1, Chung Kang Road, Siaogang District, Kaohsiung, Taiwan)
Date and place for accepting stockholders’ draft resolutions and candidate nomination of directors and supervisors

Date: April 12-22, 2013

Place: China Steel Corporation (1, Chung Kang Road, Siaogang District, Kaohsiung, Taiwan)