SGIS Songshan transfers pier project, adjusts forecasts and investment

SGIS Songshan has announced the transfer of its Longtouzhai pier construction project to Shaoguan Zhongnan Port & Shipping Co., a subsidiary of its controlling shareholder, China Baowu Group Zhongnan Iron & Steel Co. The in-progress project, valued at 53,544,100 yuan (excluding VAT), aims to enhance pier operations, reduce water transport costs, and introduce additional logistics demand. This connected transaction is expected to boost the company’s net profit for 2025 and beyond.

In related developments, SGIS Songshan adjusted its 2025 daily connected transaction forecast, reducing it by 4.868 bn yuan, and projects 2026 daily connected transactions totaling 19.909 bn yuan, a 5% increase from 2025 estimates. The company plans to renew its financial services agreement with Baowu Group Finance Co., effective until December 31, 2028, for services including settlement, deposit (up to 3 bn yuan daily), and credit services (up to 3 bn yuan daily).

SGIS Songshan also approved a mid-year adjustment to its 2025 capital construction and technical renovation investment plan, reducing the total investment by 667.5 m yuan to 5.2338 bn yuan. The adjustment aims to optimize capital allocation by focusing on core steel operations, with projects primarily in energy saving, environmental protection, equipment measures, and information technology.