Taigang Stainless Steel to manage Ningbo Baoxin equity from parent company

Shanxi Taigang Stainless Steel Co. (SZSE:000825) announced it will manage 73.97% equity in Ningbo Baoxin Stainless Steel Co., held by its controlling shareholder, Taiyuan Iron and Steel (Group) Co. This entrusted management aims to resolve horizontal competition issues. The agreement was approved by the company's Ninth Board of Directors on September 19, 2025.

The entrusted management agreement spans three years, with management fees comprising both fixed and floating components. The fixed fee is set at 1m yuan per year (including 6% VAT). A floating fee of 10% will be charged on Ningbo Baoxin's profit that exceeds the business plan target. If the annual profit falls short of the target, only the fixed fee will be paid. This transaction is considered a connected transaction, as Taigang Group holds 63.19% of Shanxi Taigang Stainless Steel's shares.

As of the disclosure date, the cumulative connected transactions between Shanxi Taigang Stainless Steel and Taigang Group in 2025 totaled 12.326bn yuan. Separately, the cumulative daily connected transactions between the company and China Baowu Steel Group and its affiliates, which is the ultimate controlling entity, amounted to 15.242bn yuan. The independent directors specifically reviewed and approved the transaction, concluding it aligns with legal regulations and the company's articles of association.