Xinxing Cast Pipe (000778.SZ) subsidiary plans to acquire 100% of China Resources Steel's shares for 1,244 billion yuan to accelerate the transformation of Premium Steel

Zhitong Finance App News, Xinxing Foundry (000778.SZ) announced that Wuhu Xinxing Casting Pipe Co., Ltd. (“Wuhu Xinxing”), a wholly-owned subsidiary of the company, plans to acquire 100% of the shares of Jiangyin Huarun Steel Co., Ltd. (“China Resources Steel”) with a transaction consideration of 1,244 billion yuan. After the transaction is completed, Wuhu Xinxing, a wholly-owned subsidiary of the company, will directly hold 100% of China Resources Steel's shares, and China Resources Steel will be included in the scope of the company's consolidated statements.

According to the announcement, China Resources Steel is mainly engaged in the processing and sales of steel smelting and rolling products. It has an annual steelmaking capacity of 940,000 tons, 400,000 tons of high-quality seamless steel pipes, 50,000 tons of rolled steel sheets for various types of tools, and complete EIA approval procedures. The products are widely used in equipment manufacturing in the fields of machinery, pressure vessels, automobiles, electricity, petroleum, metallurgy, deep processing, etc. China Resources Steel has two wholly-owned subsidiaries, Jiangyin Xingrun Renewable Resources Co., Ltd. and Jiangyin Xirun Precision Foundry Co., Ltd., which are mainly engaged in the sale of metal materials and metal products, and the recycling and sale of waste metals and other waste materials. There are no rights restrictions such as pledges or freezing of the shares of the two subsidiaries.

After the transaction was completed, Wuhu Xinxing, a subsidiary of the company, fully took over the production and operation of China Resources Steel, collaborated on market development, enhanced market competitiveness, and enhanced the company's core competitiveness and sustainable development capabilities. Wuhu Xinxing's acquisition of China Resources Steel can push the company to optimize the structural adjustment of steel products and accelerate the transformation of premium steel.