Chongqing Iron & Steel advances acquisition of production assets

Chongqing Iron & Steel Company (SSE:601005) has announced significant progress in its acquisition of assets from Chongqing Iron & Steel (Group) Co., Ltd. The transaction involves the purchase of the steelmaking II series, a 4100mm thick plate, 2700mm plate, wire rod, bar, and profile production lines and other assets. The agreed transaction price is CNY 1,080,659,977.20, inclusive of tax. A formal asset transfer agreement was signed on June 16, 2025, with payment to be made in installments. Chongqing Iron & Steel is obligated to pay 30% of the total including a deposit and transaction fees up front after which the remaining balance is to be paid in the next year. The assets had a CNY 10,600.89M book value on balance sheet and the consideration takes into account the assets' capacity for future earnings. The assets had a CNY 208,937.29M loss in 2017 due to heavy losses. The board says this acquisition will ensure stable production and optimize the firm's industrial structure.