Ma'anshan Steel and China Baowu Steel signs agreement on routine connected transactions
2019-12-31 17:30:01 [Print]
On December 30, 2019 Ma'anshan Iron and Steel Co., Ltd. ("Ma'anshan Steel Ltd." or "the Company") and China Baowu Steel signed an agreement on routine connected transactions which will be effective from January 1, 2020 to December 31, 2020.
China Baowu Steel is the controlling shareholder of Masteel Group, while the latter is the controlling shareholder of Ma'anshan Steel Ltd. So via Masteel Group, China Baowu Steel holds a 45.535% stake in Ma'anshan Steel Ltd.; meanwhile, China Baowu Steel's fully-owned subsidiary Baosteel Hong Kong Investment Co., Ltd. holds a 11.640% stake in Ma'anshan Steel Ltd. In total, China Baowu Steel holds a 57.175% stake in Ma'anshan Steel Ltd.
The newly signed agreement includes the following main points:
(1) The Company or its subsidiaries sells to China Baowu Steel or its subsidiaries products including steel products, billets, energy, accessories and related products, with the annual sales amount not to excel RMB40 million (USD5.74 million) (VAT excluded);
(2) The Company or its subsidiaries provides service to China Baowu Steel or its subsidiaries, with the annual sales amount not to excel RMB20 million (USD2.87 million) (VAT excluded);;
(3) The Company or its subsidiaries purchases from China Baowu Steel or its subsidiaries products including iron ores and steel scrap, etc, with the annual purchase amount not to excel RMB147 million (USD21.09 million) (VAT excluded);
(4) The Company or its subsidiaries purchases service from China Baowu Steel or its subsidiaries, with the annual purchase amount not to excel RMB580 million (USD83.19 million) (VAT excluded).
China Baowu Steel is the controlling shareholder of Masteel Group, while the latter is the controlling shareholder of Ma'anshan Steel Ltd. So via Masteel Group, China Baowu Steel holds a 45.535% stake in Ma'anshan Steel Ltd.; meanwhile, China Baowu Steel's fully-owned subsidiary Baosteel Hong Kong Investment Co., Ltd. holds a 11.640% stake in Ma'anshan Steel Ltd. In total, China Baowu Steel holds a 57.175% stake in Ma'anshan Steel Ltd.
The newly signed agreement includes the following main points:
(1) The Company or its subsidiaries sells to China Baowu Steel or its subsidiaries products including steel products, billets, energy, accessories and related products, with the annual sales amount not to excel RMB40 million (USD5.74 million) (VAT excluded);
(2) The Company or its subsidiaries provides service to China Baowu Steel or its subsidiaries, with the annual sales amount not to excel RMB20 million (USD2.87 million) (VAT excluded);;
(3) The Company or its subsidiaries purchases from China Baowu Steel or its subsidiaries products including iron ores and steel scrap, etc, with the annual purchase amount not to excel RMB147 million (USD21.09 million) (VAT excluded);
(4) The Company or its subsidiaries purchases service from China Baowu Steel or its subsidiaries, with the annual purchase amount not to excel RMB580 million (USD83.19 million) (VAT excluded).
