On February 26, 2026, the Shanghai Municipal Administration for Market Regulation in China published a public notice regarding the "Case of Shiheng Special Steel Group Co., Ltd. Acquiring Equity in Shandong Taishan Iron and Steel Group Co., Ltd. and Twenty-one Other Companies". The specific details are as follows:

Case Name

Case of Shiheng Special Steel Group Co., Ltd. Acquiring Equity in Shandong Taishan Iron and Steel Group Co., Ltd. and Twenty-one Other Companies

Transaction Overview

In the substantive consolidation and reorganization case of 51 affiliated enterprises including Shandong Taishan Iron and Steel Group Co., Ltd. ("Taishan Steel Group"), according to the reorganization plan approved by the Laiwu District People's Court of Jinan City, Shandong Province, China, 22 affiliated enterprises including Taishan Steel Group engaged in the main steel business ("Taishan Steel Group and the Twenty-two Companies") will be restructured, and all their equity will be directly or indirectly held by a newly established limited liability company ("Steel Asset Operation Platform"). Shiheng Special Steel Group Co., Ltd. ("Shiheng Special Steel Group") intends to act as a reorganization investor to acquire an 80% equity stake in the Steel Asset Operation Platform. Taishan Steel Group and the Twenty-two Companies are primarily engaged in the production and sales of hot-rolled coils and cold-rolled coils. Before the transaction, Wang Yongsheng solely controlled Taishan Steel Group and the Twenty-two Companies. After the transaction, Shiheng Special Steel Group will indirectly hold an 80% equity stake in Taishan Steel Group and the Twenty-two Companies, thereby solely controlling them.

Introduction to the Concentrating Undertakings

Shiheng Special Steel Group

Shiheng Special Steel Group was established on December 27, 2000, in Tai'an City, Shandong Province. Its main business involves the production and sales of round steel, mine roof bolt steel, angle steel, hot-rolled coils, etc. The ultimate controller of Shiheng Special Steel Group is a natural person, and its main business activities include heat supply, power generation, catering, hazardous chemical operations, etc.

Taishan Steel Group and the Twenty-two Companies

Taishan Steel Group and the Twenty-two Companies were all established in Jinan City, Shandong Province. Their main business is the production and sales of steel products. The ultimate controller of Taishan Steel Group and the Twenty-two Companies is a natural person, and their main business activities encompass steel production, tourism and hotels, financial investment, modern agriculture, real estate and trade, etc.

The Road to Bankruptcy Reorganization for Taishan Iron and Steel Group

Adjudication of Bankruptcy Reorganization

On July 4, 2025, the Laiwu District People's Court of Jinan City lawfully ruled to accept the bankruptcy reorganization applications of eight affiliated enterprises including Shandong Taishan Iron and Steel Group Co., Ltd. and appointed the liquidation group of Shandong Taishan Iron and Steel Group Co., Ltd. and its affiliated enterprises as the administrator on the same day.

51 Companies Consolidated for Reorganization

On August 16, 2025, upon application by the administrator of Shandong Taishan Iron and Steel Group Co., Ltd., the Laiwu District Court lawfully ruled to conduct substantive consolidation and reorganization for 51 affiliated enterprises including Shandong Taishan Iron and Steel Group Co., Ltd.

Recruitment of Reorganization Investors

On September 10, 2025, the China Enterprise Bankruptcy Reorganization Case Information Network released the "Recruitment Announcement for Reorganization Investors in the Substantive Consolidation and Reorganization Case of 51 Affiliated Enterprises Including Shandong Taishan Iron and Steel Group Co., Ltd.".

Reorganization Plan Approved

On February 11, 2026, the Laiwu District People's Court of Jinan City, Shandong Province, issued an announcement stating that, based on the application from the administrator of 51 affiliated enterprises including Shandong Taishan Iron and Steel Group Co., Ltd. and in accordance with relevant national laws and regulations, it ruled to approve the "Reorganization Plan for the Substantive Consolidation and Reorganization Case of 51 Affiliated Enterprises Including Shandong Taishan Iron and Steel Group Co., Ltd." and to terminate the substantive consolidation and reorganization proceedings for the 51 affiliated enterprises including Shandong Taishan Iron and Steel Group Co., Ltd. Previously, the "Reorganization Plan (Draft) for the Substantive Consolidation and Reorganization Case of 51 Affiliated Enterprises Including Shandong Taishan Iron and Steel Group Co., Ltd." had been approved by the voting groups of creditors' meetings and the capital contributors' group.

Taishan Iron and Steel Group

Shandong Taishan Iron and Steel Group Co., Ltd. (hereinafter referred to as "Taishan Steel") is located in Laiwu District, Jinan City. It was founded in 1969 and is a modern enterprise group focusing on premium steel plate and strip products as its main business, integrating new materials, high-end equipment, international trade, logistics and transportation, urban heating supply, and other diversified operations, with coordinated development of industry, academia, and research.

Taishan Steel has a registered capital of 3 billion yuan, employs over 8,000 staff, and has more than 1,100 in-service Party members. Its main products comprise four series: stainless steel cold-rolled, stainless steel hot-rolled, ordinary carbon steel cold-rolled, and ordinary carbon steel hot-rolled. It has been selected as one of China's Top 500 Enterprises for 14 consecutive years. It is an important cold-rolled sheet production base in Shandong Province and a key pillar of Shandong's "Lai-Tai Inland Premium Steel Production Base". It is also a compliant enterprise approved under the "Specifications for the Steel Industry" by the Ministry of Industry and Information Technology, a national-level "Green Factory" in 2007, a backbone enterprise of the National New Materials Industrialization Base, a key cultivation enterprise for Shandong's Century Brands, the chair unit of the Shandong Stainless Steel Industry Association, and the "Chain Leader" unit of the Shandong Stainless Steel Industry Chain.