Shandong Iron And Steel subsidiary seeks bankruptcy liquidation

Shandong Iron And Steel Company Limited announced today that its board of directors approved the application for bankruptcy liquidation of its controlled subsidiary, Laiwu Steel Metallurgical Ecological Engineering Technology Co., Ltd. (Metallurgical Ecology). This decision aims to streamline the company's focus on its core business, clear out inefficient assets, and protect shareholder interests, as Metallurgical Ecology has ceased operations.

As of October 31, 2025, Metallurgical Ecology reported total assets of CNY 91,200 and total liabilities of CNY 33,805,500, resulting in owner's equity of -CNY 33,714,300. Given its insolvency and inability to pay debts, the subsidiary will proceed with a bankruptcy liquidation application to the court. Shandong Iron And Steel Company holds a 51% stake in Metallurgical Ecology.

The bankruptcy liquidation is expected to increase the company's consolidated net profit attributable to parent company shareholders by CNY 15.88 million. This move is anticipated to optimize resource allocation and mitigate operational risks for Shandong Iron And Steel Company, without negatively impacting its ongoing operations.