Maanshan Iron & Steel Company Limited (00323) has announced that on September 29, 2026, the company entered into an equity transfer agreement with Magang Group, pursuant to which the company agreed to transfer its 92% equity interest in the target company (Maanshan Magang Cihu Steel Processing and Distribution Co., Ltd.) to Magang Group, and Magang Group agreed to acquire the 92% equity interest held by the company in the target company, with a transfer consideration of RMB 136 million. Upon completion of the equity transfer, the company will no longer hold any equity interest in the target company.
The target company's primary business activities include cold rolling, galvanizing, silicon steel, color coating processing, distribution, and warehousing services.
The equity transfer will enable the company to recover approximately RMB 136 million in funds and divest a non-core asset that has already exited the steel extension processing business and incurred losses in the first half of 2026. This will help further improve the company's asset quality, reduce sources of losses, focus on its core steel business, and enhance liquidity, supporting the company's long-term sustainable development. The recovered funds will underpin the company's high-quality long-term growth.