Zheng Quan Zhi Xing·2025-06-20 09:45Core Viewpoint - The company, Chongqing Iron and Steel Co., Ltd., has completed the auction process for targeted assets and signed an asset transfer contract with Chongqing Steel Group for a total price of RMB 1,080,659,977.20, which is a significant transaction that requires disclosure under listing rules [1][4]. Summary by Relevant Sections Asset Transfer Contract - The asset transfer contract was signed on June 16, 2025, between Chongqing Iron and Steel Co., Ltd. (buyer) and Chongqing Steel Group (seller) [1][2]. - The targeted assets include steel production lines for thick plates, medium plates, wire rods, bars, and profiles [1][4]. - The total transaction price is RMB 1,080,659,977.20, inclusive of tax [1][4]. - Payment terms include an initial 30% payment upon contract effectiveness and the remaining balance to be paid in installments within one year [1][4]. Valuation Basis - The transaction price is based on an assessment by Beijing Zhongtonghua Asset Appraisal Co., Ltd., which valued the targeted assets at RMB 1,092,433,800 as of October 31, 2024 [3][14]. - The assets were publicly auctioned at a price lower than the assessed value, indicating a strategic acquisition aligned with the company's interests [3][4]. Rationale for Contract Signing - The acquisition is crucial for the company's ongoing operations and aligns with national industrial policies, supporting the company's core business development and product structure optimization [4][5]. - The board of directors believes the terms of the transfer contract are fair and in the best interest of the company and its shareholders [4][6]. Financial Implications - The total net asset value of the targeted assets is RMB 106,008,900, with an estimated increase in value of RMB 986,424,900, resulting in a valuation increase rate of 930.51% [14]. - The company has conducted a thorough assessment of its financial and funding capabilities to ensure it can support the acquisition [4][14].