SHOUGANG CENT (00103): Joint venture company plans to establish a super new materials company.

SHOUGANG CENT (00103) announced that WMEL (a wholly-owned subsidiary of the company) and RZHL (indirectly wholly-owned by Mr. Zhao Yue, vice chairman and executive director of the company) entered into a joint venture agreement on September 11, 2024, involving the establishment of a joint venture company. WMEL and RZHL will each hold 50% stake in the joint venture company. The joint venture company was established in November 2024 and has recently decided to serve as the investment entity for the company's European steel cord production base project. The board of directors of the joint venture company has appointed Mr. Zhao Yue as the person in charge of the preliminary phase of the project, responsible for advancing the due diligence work comprehensively, including market demand, investment environment, site selection, production construction plan, project investment amount, and other matters related to the project, and conducting analysis and discussions on all other matters related to the project. The progress of the project aims to further enhance the group's market share in the European steel cord market and expand to markets in the Middle East and Africa, in response to international customers' demand for a secure supply chain, reducing potential risks such as policy changes and shipping, and further enhancing international competitiveness. The joint venture company plans to establish a super new materials company. The super new materials company will focus on the research and development of microfilaments and microfibers, and investment and incubation of related industries, with a focus on opportunities in the core components field of Siasun Robot & Automation. By using "super new materials + Siasun Robot & Automation" as the entry point and through technological innovation, cooperation in research and development, team introduction, and industry synergy, the company aims to establish industry standards for the tendon rope industry of Siasun Robot & Automation. In addition, the super new materials company will also explore multiple industry tracks such as pharmaceuticals, constructing a diverse application ecosystem of "super new materials +." While continuing to focus on the main business of steel cords and global expansion, the group is continuously exploring innovative business transformation and upgrades. Through "technology empowerment," the group aims to become a globally leading provider of high-quality steel cords and a platform for super new materials. The establishment of the super new materials company aims to leverage the group's accumulated production process and technological development advantages in the field of metal materials to explore downstream scenarios for microfilaments and microfibers, unearth investment opportunities in the upstream and downstream industries, and further empower the group's "second growth curve" through the diverse application ecosystem of "super new materials +."