Jiu Steel Hongxing secures CNY 1.9 bn loan for decarbonization project

Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd. (Jiu Steel Hongxing) announced a joint application with its affiliate, Jiayuguan Hongsheng Electric and Thermal Co., Ltd., for a project loan to fund the "Jiu Steel Surplus Gas Comprehensive Utilization Energy-Saving and Decarbonization Project." The loan, totaling up to CNY 1.9 billion, has a financing term of up to 10 years, including a one-year grace period. Jiayuguan Hongsheng Electric and Thermal Co., Ltd. will be the primary borrower, with Jiu Steel Hongxing acting as a co-borrower, and funds disbursed directly to Jiu Steel Hongxing's account.

This related-party transaction received approval from Jiu Steel Hongxing's ninth board of directors at its first meeting on November 4, 2025. Independent directors unanimously supported the resolution, citing its benefits in enhancing financing efficiency, optimizing debt structure, reducing financing costs, and strengthening the company's liquidity and risk management capabilities without harming shareholder interests.

Jiayuguan Hongsheng Electric and Thermal Co., Ltd., a wholly-owned subsidiary of Jiu Steel Hongxing's controlling shareholder, reported total assets of CNY 14.668 billion and net assets of CNY 5.011 billion as of June 30, 2025. For the first half of 2025, it achieved operating revenue of CNY 3.589 billion and a net profit of CNY 278 million (unaudited).