On July 31, 2026, MAANSHAN IRON (00323) announced that its subsidiary, Masteel Limited, along with 15 other shareholders of Baowu Water (including China Baowu, Masteel Group, Baowu Carbon, Baohua Zhanjiang, Wugang Group, Baosteel Engineering, Baoshan Iron & Steel, Wugang Limited, Zhanjiang Steel, Meishan Steel, Zhongnan Iron & Steel, Echeng Steel, Chongqing Steel, Taigang Stainless, and Baosteel Desheng), entered into a capital increase agreement with Baosteel Development, Baodi Nanjing, Bagang Company, Shanghai Huanwu, Zhongnan Iron & Steel, and Taigang Group.

Under this agreement, Masteel Limited and the other 15 shareholders agreed to contribute their combined 96.48% stake in Baowu Water, valued at approximately 3.485 billion yuan, as capital to Baowu Environmental Technology. Of this amount, about 333 million yuan will be allocated to Baowu Environmental Technology's registered capital, with the remaining 3.152 billion yuan going to its capital reserve.

Specifically, Masteel Limited contributed its 3.151% stake in Baowu Water as consideration, valued at approximately 114 million yuan. Following the capital increase, Masteel Limited and the other 15 shareholders become shareholders of Baowu Environmental Technology, and no longer hold shares in Baowu Water. Masteel Limited's resulting equity stake in Baowu Environmental Technology is approximately 1.04%.

This transaction transitions Masteel Limited from a shareholder of Baowu Water to a shareholder of Baowu Environmental Technology. The move supports the creation of an integrated environmental management platform combining solid waste, water, and gas treatment, providing more comprehensive and efficient environmental services for Masteel Limited's green and low-carbon transformation.

By becoming a shareholder in Baowu Environmental Technology, Masteel Limited gains access to shared benefits from the development of the environmental protection industry through a capital link. It also leverages the "solid-water-gas integrated" industrial layout to enjoy synergistic gains from scale effects.

As of the date of this announcement, Masteel Limited is a subsidiary of the company. Both China Baowu and Masteel Group are controlling shareholders, with China Baowu indirectly holding approximately 53.15% of the company's shares and Masteel Group holding about 48.49%.