Type state-owned enterprise Founded 1966 Total equity 1.5 billion CNY (2015) | Revenue 12 billion CNY (2015) Total assets 19.1 billion CNY (2015) | |
Formerly called Shaoguan Iron and Steel Group Industry Iron and steel manufacturing Headquarters Guangzhou, China (legal)
Shaoguan, China (general office) Key people Li Shi-ping (Charmian & Party Committee Secretary) Operating income Parent organizations China Baowu Steel Group | ||
Baosteel Group Guangdong Shaoguan Iron and Steel Co., Ltd. known as Shaoguan Iron and Steel or SGIS or Shaogang (Chinese: 韶钢) or Shaosteel (formerly Shaoguan Iron and Steel Group) is a Chinese steel maker.
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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 (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.
History
The steel plant in Shaogang, Guangdong was established in 1966 (as Chinese: 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.
In 1997 Shaoguan Iron and Steel Group was split into 5 main subsidiaries: 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), "Shaoguan Iron and Steel Co., Ltd.", and two other subsidiaries. In the same year the shares of SGIS Songshan were floated at the Shenzhen Stock Exchange. The initial public offering price was CN¥7.76 per share; SGIS Group incorporated the listed company for CN¥1.50 only, by injecting a net assets of CN¥359 million for 240 million shares.
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 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.
In 2011, a 51% stake of Shaoguan Iron and Steel Group was transferred from SASAC of Guangdong Province to Baosteel Group, a steel conglomerate s supervised by the central government's SASAC.
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.
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).
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. 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.
On 28 September 2016, Shaoguan Iron and Steel Group was recapitalized again for CN¥3.3 billion. It was planned to buy back some assets from the listed subsidiary for CN¥4.45 million. 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).