Anyang Iron & Steel shifts strategy to subsidiary sale

Anyang Iron & Steel Company Limited has terminated its major asset restructuring plan. It will instead sell subsidiary equity to its controlling shareholder, Anyang Iron & Steel Group. The original restructuring, involving a swap of company assets for shares in Wuyang Mining, faced delays due to historical issues with Wuyang Mining's assets. The new plan involves Anyang Iron & Steel Group acquiring 78.14% of Yongtong Company and 100% of Yuhe Company for cash, with the price determined by a June 30, 2025 valuation.

This change is expected to accelerate the transaction, improve the company's asset structure, and boost liquidity. Furthermore, Anyang Iron & Steel's subsidiary, Yongtong Company, plans to collaborate with Shandong Gangxin Capital Investment Co., Ltd. on a supply chain service. This involves purchasing imported iron ore up to a value of 5,000 million yuan, secured by Yongtong Company’s casting pipe equipment. This collateral arrangement is a standard business strategy and is not considered a connected transaction.

The change in the restructuring plan and the new transaction with Shandong Gangxin Capital were approved by the board on August 26, 2025. The company's interim financial results for H1 2025 show a net profit attributable to shareholders of 38,058,251.14 yuan, a significant turnaround from a loss in the previous year. This strategic shift is designed to further enhance profitability and reduce debt levels.