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The analyst inquired about the company's future plans for overseas expansion, asking if more offices are expected to be opened beyond the current ones in Singapore and Malaysia.

Answer

Shan-Nen Bong stated that the current offices in Singapore and Kuala Lumpur are strategically located to serve the Southeast Asia region, a key source of overseas revenue. The decision to open more offices in the future will be purely data-driven. If customer numbers and revenue in another region, such as the Gulf, become material, the company will consider establishing a local presence there. The short answer is that expansion is dependent on the business numbers justifying it.

The analyst asked about Baosteel's overseas expansion strategy, including the timetable, target countries, and whether they would consider acquisitions in addition to greenfield projects.

Answer

The executive, Zou Jixin, confirmed that globalization is a necessary path. The immediate focus is the green, low-carbon steel project in Saudi Arabia with partners Aramco and PIF. Future expansion will focus on Belt and Road countries with low-carbon energy resources, particularly the Middle East. M&A of good assets is also a possibility, focusing on the core steel industry and its upstream/downstream integration. The company is also building an overseas talent pool to manage these efforts.