Anhui Honglu Steel to streamline governance, secure substantial financing

Anhui Honglu Steel Construction Group (SZSE:002541) announced a series of strategic changes approved by its board of directors on November 24, 2025, pending shareholder approval. The company plans to cancel its board of supervisors, transferring its functions to the audit committee of the board of directors, and will update its articles of association to reflect these changes and current legal requirements. This move aims to enhance corporate governance and operational efficiency.

Concurrently, the company and its wholly-owned subsidiaries are seeking a comprehensive credit facility totaling CNY 236.501 bn for 2026 to support ongoing operations and expansion. This facility covers various financing needs including working capital loans, guarantees, and supply chain financing. Additionally, the board approved an aggregate guarantee limit of CNY 173.851 bn for its subsidiaries for 2026, valid for one year after shareholder approval.

The company will also engage in accounts receivable factoring, with a total financing amount not exceeding CNY 7.8 bn. This initiative aims to accelerate cash flow, reduce management costs, and improve the company's asset-liability structure. These financial strategies and governance reforms are designed to bolster the company's growth and stability.