Jiu Steel Hongxing launches new subsidiary for advanced steel materials

Gansu Jiu Steel Group Hongxing Iron & Steel Co., Ltd. announced the establishment of a wholly-owned subsidiary, Jiugang Group Gansu Hongxing Hongbo New Materials Co., Ltd., with a registered capital of RMB 200,000,000. This move aims to optimize resource allocation and enhance the company's competitiveness in the steel industry. The new subsidiary's business scope includes the production of construction steel products, gas operations, and various metal material manufacturing and sales.

The company plans to transfer assets, liabilities, and labor from its existing rolling mill to the new subsidiary. The total assets to be transferred are valued at RMB 430,605.23万元, with liabilities of RMB 349,126.24万元, resulting in a net asset transfer of RMB 81,478.99万元. This internal restructuring is not considered a major asset reorganization or a related-party transaction and is expected to have no significant impact on the company's financial results.

This strategic investment is part of the company's long-term development strategy, focusing on expanding and strengthening its industrial chain.