Liuzhou Iron & Steel plans placement for quality upgrade project

Liuzhou Iron & Steel Co., Ltd. has approved a private placement of up to 71,428,571 shares at RMB 4.20 per share, aiming to raise a maximum of RMB 300,000,000 for its “2800mm Medium and Heavy Plate High-Quality Technology Upgrade Project.” The project, with a total investment of RMB 48,767.56万元, will address existing equipment deficiencies and improve product quality, aligning with national policies for steel industry upgrades.

The issuance, approved by the Board of Directors on December 25, 2025, and authorized by the 2024 Annual General Meeting, is expected to dilute immediate shareholder returns initially, due to the increased share capital. However, the company has pledged to implement measures to mitigate this dilution and has outlined a three-year shareholder return plan (2025-2027) emphasizing stable cash dividends.

The upgrade project is vital for Liuzhou Iron & Steel's long-term development, enhancing its core competitiveness and enabling it to meet higher product quality demands in key sectors like engineering machinery, wind power, and shipbuilding. This strategic move is anticipated to optimize the asset structure, reduce debt, and improve overall profitability in the long run.