According to an announcement by CITIC (00267), on June 17, 2024, Xinye Steel and Jiangsu Special Steel signed an equity transfer agreement. Jiangsu Special Steel will acquire 55.2482% equity of Nansteel Group held by Xinye Steel through the agreement at a cost of 13.6 billion yuan.

After the completion of this acquisition, Jiangsu Special Steel will hold 55.2482% equity of Nansteel Group, and through Nansteel Group's wholly-owned subsidiary Nanjing Steel Union and Nansteel Joint, it will hold 59.10% of the shares of Nangang Iron & Steel. At the same time, the acquirer's concerted action person, Xinye Steel, will directly hold 3.66% equity of Nangang Iron & Steel.

Jiangsu Special Steel and Xinye Steel are both wholly-owned subsidiaries of CITIC Tuff. The actual controllers are both CITIC Group, and Xinye Steel directly holds 3.66% equity of Nangang Iron & Steel. According to relevant regulations such as the "Acquisition Management Measures," Xinye Steel and the acquirer, Jiangsu Special Steel, constitute a concerted action relationship.

The announcement stated that this acquisition is to implement national strategies, deepen cooperation between the central and local governments, and achieve win-win development. CITIC Group is adjusting the equity structure of its indirect holding shareholders of listed companies through this acquisition. CITIC Tuff's indirect holding percentage of Nangang Iron & Steel remains unchanged before and after this acquisition. After the completion of this acquisition, Nanjing Steel Union remains the controlling shareholder of Nangang Iron & Steel, and the actual controller is still the CITIC Group.