MAANSHAN IRON (00323) subsidiary Ma Steel Co., Ltd. is increasing its investment in Baowu Environmental Technology by pricing the equity of Baowu Water. This move is aimed at laying out a strategy in the green environmental protection industry.

MAANSHAN IRON (stock code: 00323) announced that on July 31, 2026, Maanshan Iron & Steel Co., Ltd. and another 15 shareholders of Baowu Water (China Baowu, Maanshan Group, Baowu Carbon, Baohua Zhanjiang, Wuhan Steel Group, Baosteel Engineering, Baoshan Iron & Steel, Wuhan Steel Co., Ltd., Zhanjiang Steel, Meishan Steel, Guangdong Zhongnan Iron & Steel, Echeng Steel, Chongqing Iron & Steel, Taiyuan Iron & Steel, Baosteel Desheng) entered into a capital increase agreement with Baosteel Development, Baodi Nanjing, Baosteel Company, Shanghai Huanwu, Central South Steel, and Taiyuan Iron & Steel Group. Accordingly, Maanshan Iron & Steel Co., Ltd. and the other 15 shareholders of Baowu Water agreed to increase capital for Baowu Environmental Science and Technology using approximately 96.48% of Baowu Water's equity, valued at a total of about 3.485 billion yuan, of which about 333 million yuan is the registered capital of Baowu Environmental Science and Technology and about 3.152 billion yuan is the capital reserve of Baowu Environmental Science and Technology. Among them, Maanshan Iron & Steel Co., Ltd. will invest about 114 million yuan in Baowu Environmental Science and Technology using its 3.151% equity in Baowu Water. Upon completion of the capital increase, Maanshan Iron & Steel Co., Ltd. and the other 15 shareholders of Baowu Water will become shareholders of Baowu Environmental Science and Technology and will no longer hold shares in Baowu Water, while Maanshan Iron & Steel Co., Ltd. will hold approximately 1.04% of the equity in Baowu Environmental Science and Technology. After the capital increase, Maanshan Iron & Steel Co., Ltd. will change from a shareholder of Baowu Water to a shareholder of Baowu Environmental Science and Technology. This capital increase is beneficial for creating a comprehensive environmental management green industry platform that integrates solid, water, and gas, providing Maanshan Iron & Steel Co., Ltd. with more comprehensive and efficient environmental service support for its green low-carbon transformation. In addition, after becoming a shareholder of Baowu Environmental Science and Technology, Maanshan Iron & Steel Co., Ltd. will share the development dividends of the environmental protection industry through capital ties and enjoy the synergistic benefits derived from economies of scale through the "integration of solid, water, and gas" industry layout. As of the date of this announcement, Maanshan Iron & Steel Co., Ltd. is a subsidiary of the company, China Baowu and Maanshan Group are the controlling shareholders of the company, with China Baowu indirectly holding approximately 53.15% of the company's shares, while Maanshan Group holds approximately 48.49% of the company's shares.