Taifu Special Steel acquisition of Nanjing Iron & Steel reviewed by Citic Securities

Citic Securities Co. has released its 2025 semi-annual continuous supervision opinion and summary report concerning Taifu Special Steel (Jiangsu) Co.'s acquisition of Nanjing Iron & Steel Co. The supervision period covered June 25, 2024, to June 27, 2025. Jiangsu Special Steel acquired 55.2482% of Nanjing Iron & Steel Group's equity from Xinyegang Steel, thereby indirectly controlling 59.10% of Nanjing Iron & Steel shares. The transaction, part of an equity structure adjustment by CITIC Group, was disclosed on June 25, 2024, with the completion of the indirect controlling shareholder's equity change announced on June 28, 2024.

The report confirms that during the supervision period, Jiangsu Special Steel and its controlling shareholders, including Changyue Investment, Xinyegang Steel, Yinglian Steel, and CITIC Pacific, have adhered to their public commitments regarding independence, avoiding horizontal competition, and reducing related-party transactions. Nanjing Iron & Steel's chairman, Mr. Chen Haorong, resigned on November 23, 2024, and Mr. Yang Feng was elected as a non-independent director on January 22, 2025. On June 24, 2025, Mr. Li Guozhong resigned as vice chairman, director, and member of the Strategy and ESG Committee.

Furthermore, the acquirers have not changed Nanjing Iron & Steel's main business, asset or business arrangements, employee hiring plans, or dividend policies. There are no plans for significant changes to the company's organizational structure. The report also found no instances of the listed company providing guarantees or loans to the acquirers or their related parties.