—— Behind the 5 Million Tons Annual Capacity: A Technological Revolution and Global Expansion

August 2026 – Anhui Honglu Steel Construction (Group) Co., Ltd. (stock code: 002541), a leading player in China's steel structure industry, has delivered an impressive performance update. Since announcing the external sale of its intelligent equipment in September 2025, Honglu's laser cutting machines and welding robots have reached markets in Vietnam, Mexico, Israel, and beyond, with 435 units sold overseas and 3,352 units deployed across its own factory floors. The company, which already ranks No.1 in China with an annual production capacity of 5 million tons, is now transitioning from a pure steel structure manufacturer to an exporter of intelligent manufacturing technologies and equipment.

I. Production Scale: 5.9 Million m² of Factory Space Powering 5 Million Tons Annual Capacity

Taking a different path from its publicly listed peers, Honglu has chosen to focus on manufacturing and R&D.

To date, the company operates ten large-scale smart manufacturing bases across Anhui, Hubei, Chongqing, and Henan provinces, with a total plant area exceeding 5.9 million square meters:

This extensive manufacturing network supports Honglu's annual output of 5 million tons of steel structures, providing exceptional delivery flexibility when handling large-scale, high-density, cross-regional orders.

II. Supply Chain Strength: One Million Tons from a Single Steel Mill Annually

Honglu has built a formidable competitive moat through its supply chain strategy. The company has secured annual procurement agreements with leading domestic steel mills, including 1 million tons annually from Shagang Group alone.

Through "fixed-width and fixed-length" precision ordering and optimized logistics routing, Honglu has achieved significant cost efficiency and quality consistency at the raw material level. This economy of scale ensures competitive product pricing while guaranteeing a stable and reliable supply for customers.

III. Smart Factory: "Model-to-Product" Intelligent Steel Structure Manufacturing

Honglu defines intelligent manufacturing as "model-to-product" — driving the entire production process directly from the BIM model.

1. Model-Driven Cutting (Patent No.: CN202211192872.3)

The company's self-developed steel plate and section nesting software integrates deeply with Tekla and BIM models, enabling seamless data flow from digital models to laser cutting. The system automatically disassembles non-standard steel sections from IFC files into flat plate components, or directly imports nc1 files generated by Tekla for nesting — eliminating the need for manual drawing conversion.

The nesting system also interfaces directly with inventory, automatically generating purchase orders based on pre-nesting models and stock availability, with one-click procurement. Upon arrival, materials automatically update order readiness rates, significantly reducing manual inventory tracking time. Laser cutting and welding data are pushed directly to machines with one click, with clear task lists for "pending" and "completed" jobs, effectively reducing the risk of missed or excessive cuts.

2. QR Code Quality Traceability System (Patent No.: CN202111056156.8)

Honglu has developed a proprietary production reporting and quality inspection system with QR code traceability. Every single component is marked with a steel stamp and QR code certification, ensuring full traceability from production to installation. The system assigns accountability by name to all production and quality personnel. Each work section must pass inspection before proceeding to the next — quality is ensured through process control.

Clients can scan the QR code on any component using their mobile devices to access real-time production and quality inspection data. Honglu's Project Management Platform and "Honglu Smart Factory" mini-program allow customers to track production progress, logistics status, BIM models, and financials in real time — effectively breaking down information silos.

3. Smart Welding Robots and Intelligent Painting Lines

Honglu's self-developed steel structure welding robots support model import and one-click start. Since September 2025, 435 units have been exported to Vietnam, Mexico, Israel, and other countries. The company also has the capability to produce robot travel axes and cantilever gantry systems.

At the surface finishing stage, intelligent painting lines operate with full automation, ensuring consistent coating quality.

IV. Full Industry Chain Supporting Facilities: A Closed-Loop Ecosystem from Pipe Manufacturing to Hot-Dip Galvanizing

Honglu has built a complete ecosystem of supporting facilities around steel structure manufacturing:

V. Market Performance: Strong Growth Across New Energy, Semiconductor, and Data Center Sectors

In 2026, Honglu has demonstrated outstanding performance across high-end industrial construction sectors.

Data Centers – 455,000 tons delivered year-to-date, including:

• Alibaba Cloud Jiangsu Data Center

• China Mobile Yangtze River Delta (Wuhu) Data Center Phase III

• China Telecom Ningxia Zhongwei Data Center Phase III

• Langfang Cloud Data Center Phase II

• Hohhot Data Center

• Helingeer Data Center

• Bangkok K2 Data Center (Thailand)

• GDS Data Center (Thailand)

Semiconductor Plants – 212,900 tons delivered year-to-date, including:

• CXMT Memory Project

• SMIC (12-inch Wafer Facility)

• Dinghu Technology Park (47,800 tons)

• Xiangshan Technology Park (34,800 tons)

• Pinghu Smart Manufacturing Park Phase I (8,800 tons)

New Energy & Energy Storage – 1.63 million tons delivered year-to-date, including:

• SK New Energy Yancheng Project (Korea)

• Xiaomi Smart Manufacturing Base Phase II

Fast-Track Delivery Capability is one of Honglu's core competitive strengths:

• 80,000 tons in 50 days (data center project)

• 100,000 tons in 75 days during the pandemic (new energy project)

• 33,000 tons in 45 days (semiconductor project)

VI. New Business Expansion: Offshore Photovoltaics, Wind Towers, and Hydrogen Energy

Honglu has extended its reach into the new energy equipment manufacturing sector. The company has begun delivering offshore photovoltaic steel structure modules, with 196 modules completed to date. Meanwhile, the company is planning wind turbine tower and hydrogen energy steel structure module production, and has established Honghai New Energy Materials Co. as a wholly-owned subsidiary to drive these initiatives forward.

VII. Strategic Vision: "Becoming the Preferred Choice for Quality-Conscious Customers"

At a recent internal meeting, Honglu's Chairman emphasized: "We are continuously improving quality and efficiency, striving to become the preferred choice for customers who value quality."

From an annual production capacity of 5 million tons to the "model-to-product" intelligent manufacturing system; from ten national production bases to full penetration of high-end sectors including new energy, semiconductors, and data centers — Honglu is proving that the path of focusing on manufacturing and R&D, "a different road from its peers," is not only viable but also leading to long-term success.

About Honglu Steel Structure

Anhui Honglu Steel Construction (Group) Co., Ltd. was founded in 2002 and listed on the Shenzhen Stock Exchange in 2011 (stock code: 002541). The company's core businesses include steel structure manufacturing and sales, new building materials, intelligent equipment R&D and production, and steel structure engineering construction. Honglu has been consistently ranked among the "Top 500 Private Manufacturing Enterprises in China" and is one of the largest and most technologically advanced steel structure manufacturers in the country.