Anyang Steel subsidiary secures financing, restructures, expands guarantees

Anyang Iron & Steel Co., Ltd. (Anyang Steel) announced that its controlling subsidiary, Henan Angang Zhoukou Iron & Steel Co., Ltd. (Zhoukou Company), will undertake a related party finance lease transaction. Zhoukou Company plans to lease a wide-plate quenching machine for up to RMB 9 million over three years to optimize its financing structure.

Separately, Anyang Steel will provide a joint and several liability guarantee for Zhoukou Company's application for up to RMB 500 million in bank credit. This guarantee, pending shareholder approval, aims to meet Zhoukou Company's operational needs. Anyang Steel's total guarantees to Zhoukou Company amounted to RMB 3,524,631,280.00, excluding this new guarantee. The company's total external guarantees, including those to its subsidiaries and a related party guarantee of RMB 110 million arising from an equity sale, represent 214.24% of its latest audited net assets.

Furthermore, Anyang Steel completed the sale of 78.1372% equity in Angang Group Yongtong Ductile Iron Pipe Co., Ltd. and 100% equity in Anyang Yuhe Yongtong Pellet Co., Ltd. to its controlling shareholder for RMB 836,650,400.00. The full transfer amount has been received, concluding this related party transaction.