ST Baosteel: Give up the first right of purchase of 96.48% equity in the associated company Baowu Water Affairs.

ST Baosteel announced that its joint venture subsidiary Baowu Water intends to transfer 96.48% of its equity held by 16 shareholders other than the company to Baowu Environmental Protection for capital increase and shareholding. The company plans to abandon its preemptive purchase right considering factors such as focusing on its main business. This transaction requires approval by the company's shareholders' meeting. As of December 31, 2025, Baowu Water's revenue was 4.575 billion yuan, with a net loss of 46.7798 million yuan; as of March 31, 2026, the revenue was 922 million yuan, with a net profit of 19.8862 million yuan. This decision to abandon the preemptive purchase right will not change the scope of the company's consolidated financial statements and will not affect its financial and operational aspects.