Nanjing Iron and Steel Co., Ltd. (
abb. NISCO) is a publicly traded steel maker based in Nanjing, Jiangsu Province, China. The parent company of NISCO is
Nanjing Nangang Iron and Steel United Co., Ltd. (), a joint venture of Hong Kong listed company
Fosun International (the stake was jointly held by Fosun International and its subsidiaries) and Chinese
state-owned enterprise
A state-owned enterprise (SOE) is a Government, government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn Profit (econom ...
Nanjing Iron and Steel Group in a 60–40 ratio.
NISCO involves the
pressing and
smelting of
ferrous metals and sales of steel materials.
NISCO was a constituent of small cap
SSE 380 Index from December 2015 to December 2017.
According to
World Steel Association (Chinese companies data was provided by
China Iron and Steel Association), the corporation was ranked the 45th in 2015 the world ranking by production volume (8.590 million metric tons).
History
The steel plant in Nanjing was founded in 1958. In 1999
Nanjing Iron and Steel Group spin-off some of the assembly line of the steel plant, incorporating Nanjing Iron and Steel Co., Ltd. (NISCO).
The company became a publicly traded company in 2000 on the
Shanghai Stock Exchange
The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exc ...
, despite the parent company still owned 70.95% shares. However, after several disinvestment, it no longer the controlling shareholder of the listed company. Instead, the controlling shareholder was replaced by joint ventures of
Nanjing Iron and Steel Group in 2003 and again in 2009 under another legal person. The direct parent company also received the unlisted steel manufacturing assets from Nanjing Iron and Steel Group.
In 2010, NISCO acquired some assets (themselves were incorporated as , in short ) from the direct parent company, Nangang United, as those businesses were classified as related parties but the listed company had business relation with them. NISCO paid the direct parent company in an all-share deal for nominal value, making Nangang United owned 83.78% shares of the listed company.
According to the public filings, after the acquisition, , the listed company had a total assets (in
consolidated financial statement) of , comparing to parent company Nangang United's . The net assets (excluding minority interests) were and respectively.
NISCO also had a long business partnership with Hong Kong listed company for trading iron ore. In 2011, NISCO acquired 10% shares of a company, All Wealthy Capital, from the chairman of Prosperity International, , for US$50 million. The shares were sold back to Wong for US$50 million plus interests, as the initial public offering of All Wealthy Capital had failed, trigging the initial purchase condition. Since December 2014, Prosperity International became a related parties of NISCO, as Nanjing Iron and Steel Group owned more than 10% shares of Prosperity International.
Circa 2016, NISCO signed an agreement with banks for
debt-to-equity swap
Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue ...
. The capital increase of the subsidiary by the bank and other parties, was completed in 2017.
[ In the same year NISCO also issued new shares via ]private placement
Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. Generally, these investors include friend ...
.[
]
Equity investments
* Tiangong International (5.06%)
Shareholders
In 2003 the parent company of the listed company formed a joint venture "Nanjing Iron and Steel United" () with a consortium of civilian-run enterprise Civilian-run enterprise is a type of company or Business, enterprise to describe a non-state-owned enterprise (state-owned enterprise including companies owned by the state, the central and regional government) in the People's Republic of China. A p ...
s: Fosun High Technology and its parent company Guangxin Technology (). The stake of NISCO that held by Nanjing Iron and Steel Group was injected to Nanjing Iron and Steel United as capital. After the deal, Nanjing Iron and Steel Group owned 40% stake of Nanjing Iron and Steel United, Fosun High Technology (and its subsidiary) owned 50% and Guangxin Technology owned 10%. The parent company of Fosun High Technology was later changed to Hong Kong listed company Fosun International, which also acquired the stake from Guangxin Technology. However, Fosun International was still controlled by the shareholder of Guangxin Technology as of 2018.
In 2009, a new intermediate holding company, "Nanjing Nangang Iron and Steel United Co., Ltd." (, known as Nanjing Nangang or ()) was incorporated, Nanjing Iron and Steel United became its wholly owned subsidiary, while Nanjing Iron and Steel United owned 62.69% stake of NISCO at that time.[
As at 31 December 2015, Nangang United had disinvested NISCO to just 48.19%.][
** Fosun International Holdings (64.45% owned by Guo Guangchang)][
*** Fosun International (, 71.37% owned by Fosun International Holdings)][
***** Nanjing Iron and Steel (48.19% owned by Nangang United)
**** Nanjing Iron and Steel Group (owned 40% of Nanjing Nangang Iron and Steel United)
*** (owned 51% of Nanjing Iron and Steel Group)
** worker union of Nanjing Iron and Steel Group (owned 36.07% of Nanjing Iron and Steel Venture Investment)]
References
External links
*
Official website of "Nanjing Iron & Steel Group" and "Nanjing Nangang Iron & Steel United"
{{Steel companies of the People's Republic of China
Steel companies of China
Civilian-run enterprises of China
1958 establishments in China
Government agencies established in 1958
Chinese companies established in 1999
Manufacturing companies established in 1999
Manufacturing companies based in Nanjing
Fosun International
Companies listed on the Shanghai Stock Exchange
Privatization in China
Employee-owned companies of China