Baogang Steel Union approves asset management pact with subsidiary

Inner Mongolia BaoTou Steel Union Co., Ltd. (Baogang Steel Union) announced the approval of an asset management agreement following its 2025 third special meeting of independent directors, held via telecommunication on November 24, 2025. All four independent directors unanimously approved the proposal to entrust its Baotou Steel-operated white ash workshop to its wholly-owned subsidiary, Wuhai Baotou Steel Mining Co., Ltd.

The independent directors affirmed that the management agreement, which incurs no fees, leverages Wuhai Baotou Steel Mining’s extensive experience in limestone, quicklime, and hydrated lime production. This collaboration is expected to enhance industrial synergy, reduce raw material costs, and ensure consistent white ash product quality. As of October 2025, the white ash workshop's old production line had fixed assets with an original value of approximately yuan 3331.50m and a net value of yuan 1419.02m.

The company's seventh board of directors' thirty-ninth meeting, also held by telecommunication on November 27, 2025, further approved the resolution. Eight out of eleven directors voted in favor, with no votes against or abstentions, while three related directors—Zhang Zhao, Han Peixin, and Wang Zhancheng—recused themselves. Both independent directors and the board concluded that this arrangement will not alter the company's consolidated reporting scope, negatively impact its current operations, or harm the interests of the company or its shareholders.