Baoshan Iron & Steel Co., Ltd. Explained

Baoshan Iron & Steel Co., Ltd.
Trading Name:Baosteel
Logo Alt:Baoshan Iron and Steel logo and slogan in Chinese
Type:public
Industry:Metallurgy
Founded:[1]
Founder:Baosteel Group
Hq Location City:Shanghai
Hq Location Country:China
Num Employees:52,323
Num Employees Year:2019
Products:Steel
Revenue: CN¥292 billion
Revenue Year:2019
Net Income: CN¥12 billion
Net Income Year:2019
Assets: CN¥340 billion
Assets Year:2019
Equity: CN¥178 billion
Equity Year:2019
Footnotes:in consolidated financial statements; excluding minority interest from equity and profit figures[2]
Module:
Child:yes
Order:st
S:宝山钢铁股份有限公司
T:寶山鋼鐵股份有限公司
P:Bǎoshān gāngtiě gǔfèn yǒuxiàn gōngsī
L:Baoshan Steel and Iron Company Limited by Shares
Also Known As:stock alias
S2:宝钢股份
T2:寶鋼股份
P2:Bǎogāng gǔfèn
L2:Baosteel Shares
Altname3:short name (shared with parent company)
S3:宝山钢铁
T3:寶山鋼鐵
P3:Bǎoshān gāngtiě
L3:Baoshan Steel and Iron
Altname4:second short name (shared with parent company)
S4:宝钢
T4:寶鋼
P4:Bǎogāng
L4:Baosteel

Baoshan Iron & Steel Co., Ltd., also known as Baoshan Iron & Steel and Baosteel, is a maker of steel based in Shanghai, China, and a subsidiary of state-owned China Baowu Steel Group (formerly Baosteel Group). It is listed on the Shanghai Stock Exchange.

History

In 2000, the Baosteel Group split, creating the new Baoshan Iron & Steel Co., Ltd.,[1] which is listed on the Shanghai Stock Exchange since 12 December 2000.[3] It was the largest initial public offering in Mainland China up to that time,[4] [5] raising CNY 7.7 billion despite being limited to domestic investors.[6] [7] It was rumoured that the company has planned to list in the Stock Exchange of Hong Kong in the same year.[8] (and again in 2007) However, they were never materialized. Baoshan Iron & Steel's IPO record was broken by fellow government controlling listed company Sinopec in 2001.[9] [10] Nevertheless, Baoshan Iron & Steel also re-capitalize a few times to increase its share capital and market capitalization. For example, right after the IPO the share capital was CNY 12,512 million,[1] as of 31 December 2019, it was CNY 22,274,460,375.[2]

The major assets of the listed company at that time was the steel plant located in Shanghai.[1]

However, even until today, not all of the assets of China Baowu Steel Group were injected into the listed company, for example steel plants that incorporated as Maanshan Iron & Steel Shaoguan Iron and Steel and Xinjiang Ba Yi Iron and Steel. Some of the assets were injected into another listed company Baosight Software in 2001. In 2004 Baoshan Iron & Steel Co., Ltd. acquired Baosight Software from the parent company.[11] In the same year the listed company also attempted to acquire other assets from the parent, such as Meishan Iron & Steel, as well as the "special steel" production line of Shanghai Fifth Steel Plant.[12] At that time, another unlisted sister company which has major connected transactions with the listed company, was Shanghai Baosteel International Economic & Trade Co. Ltd. (; "Baosteel International" in short).[11] Baosteel International became a wholly owned subsidiary of the listed company in 2005.[13] A redistribution of the businesses of Baosteel International, to sister division and company took place in 2006.[14]

In 2016, Baoshan Iron & Steel Co., Ltd. merged with Wuhan Iron and Steel Company Limited in an all-share deal.

Subsidiaries

Baoshan Iron & Steel owned 4 major steel plants that located in Shanghai, Nanjing (in Meishan Iron Mine), Zhanjiang and Wuhan. The latter three were incorporated as a limited companies. Baoshan Iron & Steel also owned another listed company Baosight Software (SSE:600845) as well as other subsidiaries and joint ventures.

Baosight Software

See main article: Baosight Software.

Meishan Iron & Steel

In 2004, Baoshan Iron & Steel acquired Meishan Iron & Steel Co., Ltd.[15] Despite located in Nanjing, Jiangsu Province, the steel plant was founded by Shanghai municipal government and merged with Baosteel Group in 1998.

In 2019, it was announced that the steel plant of Meishan Iron & Steel, would relocate to Yancheng, Jiangsu Province in the 2020s.[16]

Zhanjiang Iron & Steel

In October 2012, Baosteel acquired the controlling stake in Zhanjiang Iron & Steel Co., Ltd. from the State-owned Assets Supervision and Administration Commission (SASAC) of the Guangzhou Municipal People's Government.[17] After the capital increase as well as the withdrew of Guangzhou SASAC, the listed company owned 90% stake of Zhanjiang Iron & Steel.[18]

The first phase of the steel plant that owned by Zhanjiang Iron & Steel, is completed in 2016.[19]

Wuhan Iron & Steel

See main article: Wuhan Iron and Steel Company Limited. On 21–22 September 2016, a merger between Baosteel Group and Wuhan Iron and Steel Group (WISCO) was announced. Baoshan Iron & Steel would take over the listed counterpart from Wuhan Iron and Steel Group in an all-share deal,[20] while all the rights of Wuhan Iron and Steel Group would be transferred to Baosteel Group, as both corporations were supervised by the Central Government's SASAC.

Unlike Baosteel, WISCO has a longer history which could be traced back to 1955. It was once considered as the top 3 steel plants of China, along with Ansteel Group and Baotou Steel.[21] Before the merger, if counting both listed and unlisted portions of WISCO, it was the sixth largest steel company in China and 11th in the world as of 2015, according to World Steel Association and China Iron and Steel Association.[22]

Equity investments

In 2002, Baosteel invested CNY 8 billion in the third pipeline of the West–East Gas Pipeline, acquiring a 12.8% stake (the pipe was incorporated as a limited company called). In December 2015, a new company, PetroChina Pipelines, was formed to manage all three of the west–east pipelines, and existing share capital of the three management companies were converted into the share capital of the new company, giving Baosteel an overall 3.25% stake.[23] [24]

Shareholders

Since foundation, Baosteel Group (now called China Baowu Steel Group after a merger) is the controlling shareholder of the listed company.[1] [2] In turn it is owned by the Chinese Central Government. However, the ownership ratio changed from time to time.

In mid-2016, Baosteel Group and China National Petroleum Corporation, both overseen by the State-owned Assets Supervision and Administration Commission, formed a cross ownership arrangement for their listed subsidiaries. After the deal, Baosteel Group held a 0.34% stake in PetroChina, while China National Petroleum Corp. received a 4.86% stake in Baoshan Iron and Steel.[25]

In December 2019, Baowu transferred a further 2.19% stake of the listed company to Beijing local government-owned Shougang Group.[26] Immediately after the deal, Baowu's stake on the listed company decreased from 64.12% to 61.93%.[26]

Markets

Baoshan Iron & Steel Co., Ltd. is a constituent of the CSI 300 pan-exchanges index.[27], it was also part of the subset, the CSI 100 Index.[28]

The listed company was a constituent of the SSE 50 Index, the blue chip index of the Shanghai exchange. The shares was removed from the index in 2013 and re-instated in 2017.[29] The company was removed from the index in December 2019.[30], the company is still a constituent of SSE 180 Index.

The company is ranked 323rd in 2020 edition of Forbes Global 2000.[31]

Notes and References

  1. Web site: http://stock.jrj.com.cn/share,disc,2000-11-17,600019,00000000000000nwkd.shtml. Prospectus. zh:招股说明书概要. Baoshan Iron & Steel Co., Ltd.. Shanghai. zh-cn. jrj.com.cn. 17 November 2000. 11 December 2019. 发行人成立日期, 股本. 11 December 2019. https://web.archive.org/web/20191211205729/http://stock.jrj.com.cn/share,disc,2000-11-17,600019,00000000000000nwkd.shtml. live.
  2. http://static.sse.com.cn//disclosure/listedinfo/announcement/c/2020-04-29/600019_20200429_2.pdf. zh:2019年年度报告. 2019 Annual Report. April 2020. 22 May 2020. Baoshan Iron & Steel Co., Ltd.. Shanghai Stock Exchange. zh-cn. 2020-06-10. https://web.archive.org/web/20200610191728/http://static.sse.com.cn//disclosure/listedinfo/announcement/c/2020-04-29/600019_20200429_2.pdf. live.
  3. Web site: 公司概况 | 上海证券交易所 . 2020-05-22 . 2020-06-10 . https://web.archive.org/web/20200610191725/http://www.sse.com.cn/assortment/stock/list/info/company/index.shtml?COMPANY_CODE=600019 . live .
  4. News: http://finance.sina.com.cn/2000-10-30/19380.html. zh:宝钢将发18.77亿A股 为我国境内最大上市公司. 30 October 2000. 22 May 2020. 证券时报 [Securities Times]. 华强. Sina. zh-cn. 14 February 2005. https://web.archive.org/web/20050214062236/http://finance.sina.com.cn/2000-10-30/19380.html. live.
  5. Web site: China's Baosteel heads for stock market. 6 November 2000. 3 October 2016. BBC. 21 October 2019. https://web.archive.org/web/20191021114829/http://news.bbc.co.uk/2/hi/business/1009909.stm. live.
  6. News: Baoshan Steel Hopes to Hold China's Biggest-Ever IPO . 20 November 2000. 22 May 2020. The Wall Street Journal. Dow Jones Newswires . limited.
  7. News: http://money.163.com/10/1120/17/6LUUG1KQ00254KAD.html. zh:2000年11月 宝钢股份在上交所上市 募资77亿元. 20 November 2010. 22 May 2020. 163.com. zh-cn. 3 November 2011. https://web.archive.org/web/20111103124818/http://money.163.com/10/1120/17/6LUUG1KQ00254KAD.html. live.
  8. News: http://finance.sina.com.cn/stock/marketMsg/2000-03-13/23118.html. zh:上海宝钢拟四月在港上市. 13 March 2000. 22 May 2020. 海融资讯. zh-cn. Sina. 16 March 2005. https://web.archive.org/web/20050316193051/http://finance.sina.com.cn/stock/marketMsg/2000-03-13/23118.html. live.
  9. News: http://www.peopledaily.com.cn/BIG5/paper39/3629/449818.html. zh:中石化將成股市航母. 23 June 2001. 22 May 2020. People's Daily (overseas edition). 中國上市公司周刊. zh-cn. 29 February 2024. https://web.archive.org/web/20240229141545/http://www.people.cn/404/error.html. live.
  10. News: http://www.people.com.cn/GB/jinji/35/161/20010716/512821.html. zh: 中石化：值得拥有的"黑色黄金". 16 July 2001. 22 May 2020. Xinhua News Agency. zh-cn. 黄林昊. 29 February 2024. https://web.archive.org/web/20240229141621/http://www.people.cn/404/error.html. live.
  11. News: 李晶 . 24 December 2004 . zh:宝钢拟收购宝信软件 整体上市迈出重要一步 . https://money.163.com/economy2003/editor_2003/041224/041224_273660.html . 22 May 2020 . 第一财经日报 [Chinese Business News] . zh-cn . 163.com.
  12. News: http://www.cnr.cn/caijing/jrzq/200408/t20040813_504055883.html. zh:宝钢股份增发收购集团主业资产. 13 August 2004. 22 May 2020. cnr.cn. zh-cn. 吴善阳. 29 February 2024. https://web.archive.org/web/20240229141636/https://www.cnr.cn/cnr_404/index.html. live.
  13. http://static.sse.com.cn//disclosure/listedinfo/announcement/c/2006-03-29/600019_2005_n.pdf. zh:2005年度报告. 2005 Annual Report. 2006. 22 May 2020. Baoshan Iron & Steel Co., Ltd.. Shanghai Stock Exchange. zh-cn. 2017-05-10. https://web.archive.org/web/20170510105851/http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2006-03-29/600019_2005_n.pdf. live.
  14. Web site: http://www.baointl.com/baointl_portal/portal2/mana/view_news.jsp?catalogId=default&id=279066&nodeId=264634. zh:大事记2006年. 2013. 22 May 2020. baointl.com. zh-cn.
  15. Web site: http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2004-08-12/600019_20040812_3.pdf. zh:关于资产收购及关联交易的公告. Announcement of Acquisition of Assets and Related-Parties Deal. 12 August 2004. 6 October 2016. Baoshan Iron & Steel Co., Ltd.. Shanghai Stock Exchange. Chinese. 6 October 2016. https://web.archive.org/web/20161006145545/http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2004-08-12/600019_20040812_3.pdf. live.
  16. http://jxw.nanjing.gov.cn/jxzl/201812/t20181205_1267731.html. zh:省政府与宝武集团签署《战略合作协议》 梅钢将从南京迁往盐城. 南京投资与规划处. zh-cn. 2018-12-05. 1 December 2019. 2021-02-21. https://web.archive.org/web/20210221034615/http://jxw.nanjing.gov.cn/jxzl/201812/t20181205_1267731.html. dead.
  17. News: http://jjckb.xinhuanet.com/2013-06/17/content_450499.htm. https://web.archive.org/web/20200805224951/http://jjckb.xinhuanet.com/2013-06/17/content_450499.htm. dead. August 5, 2020. zh:宝钢湛江项目开工1年仍打桩 . 胡飞军. 17 June 2013. 22 May 2020. 每日经济新闻. zh-cn. xinhuanet.
  18. News: http://companies.caixin.com/2012-10-15/100447487.html. zh:宝钢将增资湛江项目. 15 October 2012. 22 May 2020. caixin.com. 王晓庆. zh-cn. 1 September 2022. https://web.archive.org/web/20220901103307/https://companies.caixin.com/2012-10-15/100447487.html. live.
  19. News: http://www.beijingreview.com.cn/caijing/201607/t20160715_800062541.html. zh:宝钢湛江钢铁二号高炉点火，未来产能将移至湛江. 邓亚卿. 15 July 2016. 22 May 2020. 北京周报 [Beijing Review]. zh-cn. 4 September 2019. https://web.archive.org/web/20190904044425/http://www.beijingreview.com.cn/caijing/201607/t20160715_800062541.html. live.
  20. Web site: China's Top Steel Mills Step Closer to Creating Arcelor Rival. 21 September 2016. 3 October 2016. Bloomberg. 21 October 2019. https://web.archive.org/web/20191021123409/https://www.bloomberg.com/news/articles/2016-09-20/china-to-proceed-with-biggest-steel-merger-in-almost-a-decade. live.
  21. zh:中国当代钢铁工业发展的思想与实践. 荣文丽. 武力. 河北学刊 [Hebei Academic Journal]. 33. 1. zh-cn. January 2013. 1003-7071. Hebei Academy of Social Sciences.
  22. Web site: Top steel-producing companies . 19 July 2016. 22 May 2020. c. 2016. https://web.archive.org/web/20160719102615/http://www.worldsteel.org/statistics/top-producers.html. World Steel Association. For Chinese companies, the official CISA tonnage publication was used..
  23. http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2016-03-31/600019_2015_n.pdf. zh:2015年年度报告. 2015 Annual Report. 31 March 2016. 3 October 2016. Baoshan Iron & Steel Co., Ltd.. Shanghai Stock Exchange. zh-cn. 21 December 2016. https://web.archive.org/web/20161221200446/http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2016-03-31/600019_2015_n.pdf. live.
  24. Web site: Discloseable Transaction – Connected Transaction. 24 December 2016. 3 October 2016. PetroChina. Hong Kong Exchanges and Clearing website. 25 January 2022. https://web.archive.org/web/20220125022833/https://www1.hkexnews.hk/listedco/listconews/sehk/2015/1224/ltn20151224569.pdf. live.
  25. Web site: Baosteel Seals CNPC Stake Swap With $590 Million Worth of Shares. 15 August 2016. 3 October 2016. Bloomberg. 21 October 2019. https://web.archive.org/web/20191021122645/https://www.bloomberg.com/news/articles/2016-08-15/baosteel-seals-cnpc-stake-swap-with-590-million-worth-of-shares. live.
  26. http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2019-12-11/600019_20191211_1.pdf. zh:关于国有股份无偿划转的提示性公告. 11 December 2019. 15 December 2019. Baoshan Iron and Steel Co., Ltd.. zh-cn. Shanghai Stock Exchange website. 15 December 2019. https://web.archive.org/web/20191215053116/http://static.sse.com.cn/disclosure/listedinfo/announcement/c/2019-12-11/600019_20191211_1.pdf. live.
  27. Web site: Constituents List. 22 May 2020. China Securities Index. 1 January 2024. https://web.archive.org/web/20240101112603/https://www.csindex.com.cn/uploads/file/autofile/cons/000300cons.xls?t=1590172816. live.
  28. Web site: 中证指数2023年度 . live . https://web.archive.org/web/20240101110402/https://www.csindex.com.cn/uploads/file/autofile/cons/000903cons.xls?t=1590172703 . 2024-01-01 . 2020-05-22.
  29. News: http://bg.baosteel.com/contents/3309/109367.html. zh: 宝钢股份重回上证50指数. 6 December 2017. 22 May 2020. China Baowu Steel Group . zh-cn. 王磊. baosteel.com.
  30. News: http://epaper.stcn.com/paper/zqsb/html/2019-12/02/content_1398118.htm. zh:沪深300等指数样本股16日起调整. 2 December 2019. 22 May 2020. 证券时报 [Securities Times]. 朱凯. zh-cn. 29 February 2024. https://web.archive.org/web/20240229142119/http://epaper.stcn.com/paper/zqsb/html/2019-12/02/content_1398118.htm. live.
  31. Web site: Baoshan Iron & Steel . . 2020-05-22 . 2021-05-13 . https://web.archive.org/web/20210513070945/https://www.forbes.com/companies/baoshan-iron-steel/ . live .

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