en.Wedoany.com Reported - Liuzhou Iron & Steel Co., Ltd. (stock code: 601003) announced on June 11, 2026, the "Report on Issuance of Shares and Payment in Cash for Asset Acquisition and Raising Matching Funds and Related Party Transactions (Draft)," proposing to acquire a 13% stake in Guangxi Iron & Steel Group Co., Ltd. ("Guangxi Iron & Steel") from its controlling shareholder, Guangxi Liuzhou Iron & Steel Group Co., Ltd. ("Liuzhou Iron & Steel Group"), for a total consideration of 3.664 billion yuan. Upon completion of this transaction, Guangxi Iron & Steel will become an absolute controlled subsidiary of Liuzhou Iron & Steel Co., Ltd.
Founded in 1992 and headquartered in Liuzhou, Guangxi, Liuzhou Iron & Steel Co., Ltd. is a key listed steel company in Southwest China. Its main business covers the entire steel production process, including sintering, ironmaking, steelmaking, and rolling, with major products such as plates, profiles, and wire rods. Guangxi Iron & Steel Group Co., Ltd., a core steel production base under Liuzhou Iron & Steel Group, is located in the Qisha Industrial Zone of Fangchenggang, Guangxi. It boasts advanced coastal steel production facilities and serves as the core operational entity of Liuzhou Iron & Steel Co., Ltd. Previously a controlled subsidiary of Liuzhou Iron & Steel Group, Liuzhou Iron & Steel Co., Ltd. held a total of 89.29% voting rights in Guangxi Iron & Steel through direct shareholding and entrusted exercise of voting rights.
According to the "Asset Appraisal Report" issued by China United Assets Appraisal Group Co., Ltd., the total equity value of Guangxi Iron & Steel at the appraisal base date was 27.706 billion yuan. In this transaction, Liuzhou Iron & Steel Co., Ltd. plans to issue 627 million shares to Liuzhou Iron & Steel Group at a price of 4.25 yuan per share, while simultaneously raising matching funds of 1.5 billion yuan. The funds raised will be used as follows: 1 billion yuan for paying the consideration for this equity transaction, and 500 million yuan for supplementing working capital and repaying debts. Prior to this transaction, Liuzhou Iron & Steel Co., Ltd. directly held 44.77% of Guangxi Iron & Steel's equity and indirectly held 0.33% through Lingang No.1 (Fangchenggang) Equity Investment Fund Partnership (Limited Partnership), totaling 45.11% equity. Additionally, Liuzhou Iron & Steel Co., Ltd. exercised voting rights corresponding to the 44.52% equity stake held by Liuzhou Iron & Steel Group in Guangxi Iron & Steel on a entrusted basis, resulting in a total voting rights ratio of 89.29%. After acquiring this 13% stake, Liuzhou Iron & Steel Co., Ltd.'s direct shareholding in Guangxi Iron & Steel will increase to approximately 58%, achieving absolute control.
Financial data shows that in 2024, Guangxi Iron & Steel achieved operating revenue of 32.853 billion yuan, with a net profit attributable to the parent company of -314 million yuan; in 2025, it achieved operating revenue of 37.958 billion yuan, with a net profit attributable to the parent company of 1.335 billion yuan, turning losses into profits. Liuzhou Iron & Steel Co., Ltd. stated that this transaction will further enhance the listed company's control over Guangxi Iron & Steel, fully leverage the business synergy between the two parties, improve operational decision-making and management efficiency, solidify the foundation of the steel main business, and strengthen overall industry competitiveness.
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