Anyang Iron & Steel subsidiary secures financing via leasing deals

Anyang Iron & Steel (SSE:600569) announced its subsidiary, Yongtong, will engage in sale-leaseback transactions with Shanghai Dingyi Financial Leasing Co. Ltd. to bolster working capital. The arrangement involves Yongtong leasing back its iron-making, power generation, and casting equipment. The financing amount is capped at CNY 50 million with a term of 3-5 years, effective for 12 months from board approval. The company noted past related transactions with Shanghai Dingyi totalled CNY 63 million within the last year. These leasing activities are deemed necessary for Yongtong’s development, with pricing aligned to market rates, and pose no risks to minority shareholders. In a separate but related announcement, Anyang Iron & Steel also reported a separate action relating to subsidiary Zhoukou, which will undertake factoring financing for a maximum amount of CNY 50 million and a maturity of no longer than 6 months. These related-party and normal financing deals help Anyang Iron & Steel modernize and grow production in response to high demand for iron and steel products. The announcements came as the firm is also actively managing its assets, with approval given to scrap obsolete fixed assets with an original value of CNY 75,148,936.01.