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Shaoguan Iron and Steel

Baosteel Group Guangdong Shaoguan Iron and Steel

Formerly	Shaoguan Iron and Steel Group
Company type	state-owned enterprise
Industry	Iron and steel manufacturing
Founded	1966 (as steel plant) 11 September 1989 (1989-09-11) (as company)[1] December 1996 (as limited company)
Headquarters	Guangzhou, China (legal) Shaoguan, China (general office)
Key people	Li Shi-ping (Charmian & Party Committee Secretary)
Revenue	CN¥15.175 billion (2016)
Operating income	(CN¥0301 million) (2016)
Net income	CN¥00054 million (2016)
Total assets	CN¥19.117 billion (2016)
Total equity	CN¥04.822 billion (2016)
Owner	China Baowu Steel Group (51%) Hengjian Holding (49%)
Parent	China Baowu Steel Group (direct) SASAC (intermediate) State Council (ultimate)
Subsidiaries	SGIS Songshan (53.37%) Shaoguan Iron and Steel (100.0%) Chung Shan Development (100.0%)
Footnotes / references inconsolidated financial statement[2]

Baosteel Group Guangdong Shaoguan Iron and Steel Co., Ltd. known as Shaoguan Iron and SteelorSGISorShaogang (Chinese: 韶钢) 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 (51%; formerly known as Baosteel Group) and the government of Guangdong [zh] (49%).

The company was registered in Guangzhou, Guangdong, but the general office is located in Maba, Qujiang District, Shaoguan, Guangdong. SGIS Group is the parent company of SGIS Songshan Co., Ltd. (SZSE: 000717) for 53.37% stake, which most of the group assets and revenue came from.^[3]

The steel plant in Shaogang, Guangdong was established in 1966 (asChinese: 韶关钢铁厂). In 1989 the plant was marketized as a company and was subsequently renamed into Guangdong Shaoguan Iron and Steel Group Corporation (Chinese: 广东省韶关钢铁集团公司) in December 1993. In December 1996, it became Guangdong Shaoguan Iron and Steel Group Co., Ltd. (Chinese: 广东省韶关钢铁集团有限公司) Shaoguan Iron and Steel was one of the most 512 important state-owned enterprises in 1997. In early 2000, the enterprise was among 120 companies selected in a pilot project aimed at rapidly improving their international competitiveness.^[4]

In 1997, Shaoguan Iron and Steel Group was split into 5 main subsidiaries:^[5] SGIS Songshan (Chinese: 广东韶钢松山股份有限公司, incorporated on 29 April 1997), "Chung Shan Investment & Development" (Chinese: 松山置业发展, "Chung Shan Development" in short),^{[nb 1]} "Shaoguan Iron and Steel Co., Ltd.",^{[nb 2]} and two other subsidiaries.^[5] In the same year the shares of SGIS Songshan were floated at the Shenzhen Stock Exchange.^[3] The initial public offering price was CN¥7.76 per share;^[7] SGIS Group incorporated the listed company for CN¥1.50 only, by injecting a net assets of CN¥359 million for 240 million shares.^[7]

In 2008, an agreement was signed with Baosteel Group that 100% shares of Shaoguan Iron and Steel Group and Guangzhou Iron and Steel Enterprise Group [zh] 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.^[8]

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's SASAC.^[8]

In September 2012, the remaining 49% were transferred to a wholly owned subsidiary of Guangdong SASAC, namely Guangdong Hengjian Investment Holding (Chinese: 广东恒建投资控股有限公司). In November 2012 Shaoguan Iron and Steel Group was recapitalized for CN¥1.851 billion.^[9]

In December 2012, the company was once more renamed into Baosteel Group Guangdong Shaoguan Iron and Steel Co., Ltd. (Chinese: 宝钢集团广东韶关钢铁有限公司).^[5]

In June 2013 SGIS Group subscribed CN¥1.5 billion capital increase of SGIS Songshan for CN¥2 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 CN¥5.58.^[10] In September 2015 the group bought back 0.32% shares (approx. 7.7 million in number) for a weighed-average of CN¥5.33 each.^[11]

On 28 September 2016, Shaoguan Iron and Steel Group was recapitalized again for CN¥3.3 billion.^[12] It was planned to buy back some assets from the listed subsidiary for CN¥4.45 million.^[13] SGIS Songshan also sold some assets to an associate company: Baosteel Special Steel Shaoguan for CN¥1.81 million (SGIS Songshan owned 49% of Baosteel Special Steel Shaoguan indirectly, the rest was owned by China Baowu Steel Group via Baosteel Special Steel).^[14]

inconsolidated financial statement (in CN¥)

Shaoguan Iron and Steel Group							SGIS Songshan
Year	Revenue	Profit	Total assets	Equity	no. of Songshan shares	%	Revenue	Profit	Profit to group	Total assets	Equity	Equity to group	Net asset per shares
1997 (restated)[15][16]					0240 million	75.0%	02.251 billion	0 170 million	0 128 million	01.373 billion	1.135 billion	0852 million	3.55
1998 (restated)[17][16]					0312 million		02.671 billion	0 176 million	0 132 million	02.490 billion	1.907 billion	1.430 billion	4.56
1999 (restated)[16][18][19]					0312 million		03.048 billion	0 164 million	0 123 million	02.412 billion	1.988 billion	1.491 billion	4.78
2000 (restated)[18][20]						69.77%	03.346 billion	0 204 million	0 143 million	02.967 billion	2.250 billion	1.570 billion	5.03
2001 (restated)[19][20][21]							03.926 billion	0 259 million	0 180 million	03.888 billion	2.559 billion	1.785 billion	5.72
2002 (restated)[20][21]							04.431 billion	0 349 million	0 244 million	05.274 billion	2.729 billion	1.904 billion	6.10
2003[21]					0468 million	55.83%	07.161 billion	0 982 million	0 548 million	08.049 billion	4.319 billion	2.411 billion	5.15
2004[22]					0468 million		10.329 billion	0 948 million	0 529 million	11.010 billion	5.016 billion	2.800 billion	5.98
2005 (restated)[23][24]					0606 million	45.15%	10.799 billion	0 147 million	00 66 million	12.377 billion	4.880 billion	2.203 billion	3.64
2006 (restated)[25][24]					0606 million		12.516 billion	0 424 million	0 191 million	12.373 billion	5.326 billion	2.364 billion	3.90
2007[24]						36.27%	14.961 billion	0 827 million	0 300 million	16.838 billion	7.406 billion	2.686 billion	4.44
2008[26]							19.108 billion	(1.611 billion)	(0584 million)	17.281 billion	5.704 billion	2.069 billion	3.42
2009[27]							13.350 billion	0093 million	0034 million	18.341 billion	5.797 billion	2.103 billion	3.47
2010[28]							18.836 billion	0021 million	0008 million	23.099 billion	5.817 billion	2.110 billion	3.47
2011[29][30]	24.664 billion	(0497 million)	27.127 billion	2.154 billion			22.874 billion	(1.138 billion)	(0413 million)	24.361 billion	4.679 billion	1.697 billion	2.80
2012[29][31]	20.822 billion	(0562 million)	23.407 billion	3.444 billion			19.260 billion	(1.952 billion)	(0708 million)	20.488 billion	2.730 billion	0990 million	1.64
2013 (restated)[29][32][33]	20.574 billion	(0046 million)	24.574 billion	3.360 billion	1.356 billion	56.02%	19.171 billion	0 101 million	00 57 million	21.647 billion	4.347 billion	2.435 billion	1.80
2014[32][34]	20.958 billion	(0677 million)	21.418 billion	2.674 billion	1.356 billion		19.497 billion	(1.388 billion)	(0778 million)	18.570 billion	2.937 billion	1.645 billion	1.21
2015[5][3]	12.030 billion	(1.387 billion)	19.076 billion	1.463 billion	1.291 billion	53.37%	11.145 billion	(2.596 billion)	(1.385 billion)	16.560 billion	0 355 million	0189 million	0.15
2016[2]	15.175 billion	00054 million	19.117 billion	4.822 billion

• State-owned Assets Supervision and Administration Commission of the State Council
  • China Baowu Steel Group (51%)
• State-owned Assets Supervision and Administration Commission of Guangdong Provincial People's Government
  • Hengjian Holding (49%)

• Chung Shan Investment & Development (simplified Chinese: 松山置业发展; traditional Chinese: 松山置業發展; pinyin: Sōngshān Zhìyè Fāzhǎn, 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)

• Official website of SGIS Songshan