Jiu Steel to boost Tibet sales, adjusts related party transaction forecasts

Gansu Jiu Steel Group Hongxing Iron & Steel (SSE:600307) plans to establish a wholly-owned sales subsidiary in Nyingchi City, Tibet Autonomous Region. The new entity, Tibet Jiu Steel Jialiya Trading Co., Ltd. (pending final approval), will have a registered capital of RMB 20 million. This move aims to capitalize on Western Development policies, expand market share, and enhance brand competitiveness. The subsidiary's business will cover sales of metal materials, construction steel, metal structures, and other related products. The investment, sourced from the company's own funds, is not expected to significantly impact its financial position.

The company also announced adjustments to its 2025 sales-related ordinary related party transaction forecasts. This includes an increase of RMB 5 million for transactions with Jiu Steel Group and Jiu Steel Logistics, bringing their revised forecasts to RMB 115 million and RMB 21 million, respectively. Minor adjustments were also made for transactions with Steel Technology Institute and Dunhuang Seed Industry. These adjustments, totaling RMB 10,035,10, reflect the company's normal operating activities and adherence to fair market pricing.

Both resolutions were approved by the company's board of directors. Independent directors and the audit committee reviewed and endorsed the related party transaction adjustments. These strategic decisions are expected to strengthen the company’s regional sales channels and operational capabilities.