MAANSHAN IRON (00323) plans to increase capital in Baowu Environmental Science by using its equity in Baowu Water to deepen the synergy of green industries.

Maanshan Iron (00323) announced that on May 27, 2026, the 52nd meeting of the tenth board of directors of the company approved the "Proposal on Increasing the Equity of Baowu Environmental Science through Maanshan Limited's Holdings in Baowu Water Affairs". The board of directors agreed that Maanshan Limited and 15 other shareholders of Baowu Water Affairs (including China Baowu, Maanshan Group, Baowu Carbon Industry, Baosteel Zhanjiang, Wugang Group, Baosteel Engineering, Baoshan Iron & Steel, Wugang Limited, Zhanjiang Iron & Steel, Meishan Iron & Steel, Guangdong Zhongnan Iron & Steel, Echeng Iron & Steel, Chongqing Iron & Steel, Taigang Stainless Steel, and Baosteel Desheng) will enter into a capital increase agreement with Baowu Development, Baode Nanjing, Bagang Company, Shanghai Huanwu, Zhongnan Iron & Steel, and Taigang Group. Accordingly, the 15 other shareholders of Maanshan Limited and Baowu Water Affairs will agree to increase their total value of approximately RMB 3.491 billion, accounting for 96.48% of Baowu Water Affairs' equity, with approximately RMB 3.33 billion as Baowu Environmental Science's registered capital and about RMB 31.58 billion as its capital reserve. After the capital increase, the 15 other shareholders of Maanshan Limited and Baowu Water Affairs will become shareholders of Baowu Environmental Science, no longer holding shares in Baowu Water Affairs, with Maanshan Limited holding approximately 1.04% of Baowu Environmental Science's equity. Maanshan Limited will increase its investment in Baowu Environmental Science by approximately RMB 1.14 billion by using its 3.151% stake in Baowu Water Affairs. The announcement stated that the capital increase of Maanshan Limited is beneficial for creating an integrated environmental management green industry platform that combines solid, water, and gas treatment, providing comprehensive and efficient environmental services support for Maanshan Limited's green and low-carbon transformation. In addition, after becoming a shareholder of Baowu Environmental Science, Maanshan Limited will share the dividends of environmental industry development through capital ties and enjoy synergistic benefits brought by scale effects and the layout of the "solid, water, and gas integrated" industry.