MAANSHAN IRON (00323.HK): To Transfer 92% Target Stake to Controlling Shareholder for RMB136.3m

NewTimeSpace News: On 29 September 2026, Maanshan Iron & Steel Company Limited (stock code: 00323) announced that it entered into an equity transfer agreement with its controlling shareholder Magang (Group) Holding Company Limited (马钢（集团）控股有限公司), under which it agreed to transfer its 92% equity interest in the target company (马鞍山马钢慈湖钢材加工配售有限公司) to Magang Group for a consideration of RMB136,306,327.57; after completion the Company will no longer hold any interest in the target company.

The consideration was determined by reference to the appraised net asset value of the target equity as at the valuation reference date of 31 January 2026, as assessed by an independent valuer and multiplied by the 92% transfer ratio, amounting to RMB136,306,327.57, subject to appropriate rounding adjustments and fair negotiation. The asset-based method was adopted after comparison; the appraised value of the target company's total equity was RMB148.1591 million, a 0.35% premium over book net assets.

The target company is principally engaged in cold rolling, galvanising, silicon steel, coil coating processing, distribution and warehousing services, with registered capital of RMB30 million, and is a non-wholly-owned subsidiary of the Company as at the announcement date. Its audited 2025 revenue and net profit were RMB1,653.0373 million and RMB0.3361 million respectively, with revenue of RMB31.2829 million and a net loss of RMB1.277 million in January 2026; its total assets and book net assets as at 31 December 2025 were RMB235.261 million and RMB149.1663 million respectively.

As Magang Group is the Company's controlling shareholder (directly holding approximately 48.49% of the shares) and a connected person, the transaction constitutes a connected transaction under Chapter 14A of the Listing Rules. As the applicable percentage ratios exceed 0.1% but are below 5%, it is subject only to the reporting and announcement requirements, with the independent shareholders' approval requirement waived. The consideration will be paid in cash in a lump sum by Magang Group from its own funds; the Company expects to record a gain of RMB136,306,327.57 upon completion (for illustrative purposes only and subject to audit review), with the proceeds (net of directly attributable expenses) to be used entirely as additional working capital.

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