Baosteel Group Guangdong Shaoguan Iron and Steel Co., Ltd. known as Shaoguan Iron and Steel or SGIS or Shaogang () or Shaosteel (formerly Shaoguan Iron and Steel Group) is a Chinese steel maker. The company is a joint venture of central government-owned iron and steel conglomerate

China Baowu Steel Group China Baowu Steel Group Corp., Ltd., commonly known as Baowu, is a state-owned iron and steel company headquartered in the Baosteel Tower in Pudong, Shanghai, China. The company was formed by Baosteel Group absorbing its smaller state-owned pe ...

(51%; formerly known as Baosteel Group) and (49%).

Structure

The company was registered in

Guangzhou Guangzhou (, ; ; or ; ), also known as Canton () and alternatively romanized as Kwongchow or Kwangchow, is the capital and largest city of Guangdong province in southern China. Located on the Pearl River about north-northwest of Hong Kon ...

Guangdong Guangdong (, ), alternatively romanized as Canton or Kwangtung, is a coastal province in South China on the north shore of the South China Sea. The capital of the province is Guangzhou. With a population of 126.01 million (as of 2020) ...

, but the general office is located in Maba, Qujiang District,

Shaoguan Shaoguan (; Hakka: Seukoan) is a prefecture-level city in northern Guangdong Province (Yuebei), South China, bordering Hunan to the northwest and Jiangxi to the northeast. It is home to the mummified remains of the sixth Zen Buddhist patriarch H ...

, Guangdong. SGIS Group is the parent company of SGIS Songshan Co., Ltd. () for 53.37% stake, which most of the group assets and revenue came from.

History

The steel plant in Shaogang, Guangdong was established in 1966 (as ). In 1989 the plant was marketized as a company and was subsequently renamed into Guangdong Shaoguan Iron and Steel Group Corporation () in December 1993. In December 1996, it became Guangdong Shaoguan Iron and Steel Group Co., Ltd. () Shaoguan Iron and Steel was one of the most 512 important

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 ...

s in 1997. In early 2000, the enterprise was among 120 companies selected in a pilot project aimed at rapidly improving their international competitiveness.

Subsidiaries

In 1997 Shaoguan Iron and Steel Group was split into 5 main subsidiaries: SGIS Songshan (, incorporated on 29 April 1997), "Chung Shan Investment & Development" (, "Chung Shan Development" in short),Chung Shan Investment & Development Co., Ltd. was incorporated on 4 August 1994 in Hong Kong, Chung Shan was Cantonese translation of Songshan "Shaoguan Iron and Steel Co., Ltd.", and two other subsidiaries. In the same year the shares of SGIS Songshan were floated at the

Shenzhen Stock Exchange The Shenzhen Stock Exchange (SZSE; ) is a stock exchange based in the city of Shenzhen, in the People's Republic of China. It is one of three stock exchanges operating independently in Mainland China, the others being the Beijing Stock Excha ...

. The

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

price was per share; SGIS Group incorporated the listed company for only, by injecting a net assets of for 240 million shares. In 2008, an agreement was signed with

Baosteel Group China Baowu Steel Group Corp., Ltd., commonly known as Baowu, is a state-owned iron and steel company headquartered in the Baosteel Tower in Pudong, Shanghai, China. The company was formed by Baosteel Group absorbing its smaller state-owned pe ...

that 100% shares of Shaoguan Iron and Steel Group and would be injected into "Guangdong Iron and Steel Group" as share capital. As a result, the State-owned Assets Supervision and Administration Commissions (SASACs) of Guangdong Province and Guangzhou City respectively, would come to own a combined 20% stake in Guangdong Iron and Steel Group. However, the deal collapsed. In 2011, a 51% stake of Shaoguan Iron and Steel Group was transferred from SASAC of Guangdong Province to Baosteel Group, a steel conglomerate and supervised by the

central government A central government is the government that is a controlling power over a unitary state. Another distinct but sovereign political entity is a federal government, which may have distinct powers at various levels of government, authorized or dele ...

SASAC The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is a special commission of the People's Republic of China, directly under the State Council. It was founded in 2003 through the consolidation of vario ...

. In September 2012, the remaining 49% were transferred to a wholly owned subsidiary of Guangdong SASAC, namely

Guangdong Hengjian Investment Holding Guangdong Hengjian Investment Holding Co., Ltd. known as Hengjian Holding is one of the holding companies of Guangdong Provincial People's Government. The company acts as one of the investment vehicles of the provincial government in railways of ...

(). In November 2012 Shaoguan Iron and Steel Group was recapitalized for . In December 2012, the company was once more renamed into Baosteel Group Guangdong Shaoguan Iron and Steel Co., Ltd. (). In June 2013 SGIS Group subscribed capital increase of SGIS Songshan for each (750 million shares). In March 2015 SGIS Group sold 2.976% shares (72 million shares) of SGIS Songshan for a weighed-average price of . In September 2015 the group bought back 0.32% shares (approx. 7.7 million in number) for a weighed-average of each. On 28 September 2016, Shaoguan Iron and Steel Group was recapitalized again for . It was planned to buy back some assets from the listed subsidiary for . SGIS Songshan also sold some assets to an associate company: Baosteel Special Steel Shaoguan for (SGIS Songshan owned 49% of Baosteel Special Steel Shaoguan indirectly, the rest was owned by China Baowu Steel Group via Baosteel Special Steel).

Financial data

Shareholders

State-owned Assets Supervision and Administration Commission of the State Council The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is a special commission of the People's Republic of China, directly under the State Council. It was founded in 2003 through the consolidation of variou ...

(51%) * State-owned Assets Supervision and Administration Commission of Guangdong Provincial People's Government ** Hengjian Holding (49%)

Subsidiaries

* Chung Shan Investment & Development (, 100%) * SGIS Songshan (53.37%) * Shaoguan Iron and Steel (70.00% directly; 22.15% via Chung Shan Investment & Development and 7.85% by Guangdong Assets Management (BVI) No.4 Limited)

Footnotes

References

External links

Official website of SGIS Songshan
{{authority control Steel companies of China Companies owned by the provincial government of China Companies based in Guangdong Manufacturing companies based in Guangzhou Organizations established in 1966 Chinese companies established in 1989 Chinese brands Baowu Government-owned companies of China Chinese companies established in 1966 1966 establishments in China