Shougang Finance Company obtained the formal approval from CBRC Beijing Office for its capital increase proposal at the beginning of September 2017. The company completed industrial and commercial registration procedures, and received a new business license in the same month. After the capital increase, the finance company raised its registered capital from RMB5 billion to RMB10 billion, with its stock structure remaining unchanged. As its second capital increase, this one marks an important strategic step made by Shougang Group, towards attaining greater excellence and strength, and integrating its industry and finances. This capital increase will help the company further optimize its capital structure, and increase its capital strength. It will improve its capital adequacy ratio, and remove obstacles that are restraining the development of business scale. The result will be an enhanced capability for financial service, and a resistance capacity for external risks.

Since its opening, Shougang Finance Company has always strived to achieve maximum benefits for the Group, and reinforced the centralized management of the Group’s funds. This started with efforts to clean bank accounts, understand business demands of member units, apply for financial business licenses, and expand its cooperation with agencies in the same sector. The company carried out business innovations and development of member units in their operation and management, and enriched its means to balance the structure of assets and liabilities. Shougang Finance Company will take the capital increase as an opportunity, and continue to focus on the goal of building its fund sweeping platform, fund settlement platform, fund monitoring platform and financial service platform. The company will maximize the effect of its capital increase, advance the integration of industry and finances, and better meet the financial demands of member units. This will lay a solid foundation for Shougang Group to stabilize its capital chain and enhance its value chain.