Shougang adjusts management services, renews related party transaction framework

Beijing Shougang Company Limited (SZSE:000959) announced a supplementary agreement to its management service agreement with its controlling shareholder, Shougang Group Company Limited. This adjustment, effective January 1, 2026, removes Beijing Shougang Lujiashan Limestone Mine Company Limited from the list of managed entities, reducing the total to 10. The original management service agreement, which commenced January 1, 2025, remains largely in effect, with services calculated at 3% of the managed assets' total.

Concurrently, the company will renew its framework agreement for related party transactions with Shougang Group and its affiliates for a three-year period, from January 1, 2026, to December 31, 2028. This comprehensive agreement covers ongoing procurement, sales, and various services vital for the company's daily operations. For 2026, projected related party purchases are CNY 66.93123 bn, and related party sales are CNY 5.92131 bn.

Both agreements will be submitted for shareholder approval, with Shougang Group abstaining from voting due to its status as a controlling shareholder. These transactions aim to strengthen operational collaboration and ensure the company's long-term development while adhering to fair market pricing principles.