Chinese steel giant Baosteel Group plans to sell its 40 percent stake in Jiading,Shanghai-based steel company Shanghai Jiayi Cold-formed Section Steel Factory, as announced by Shanghai-based integrated market platform Shanghai United Assets and Equity Exchange (SUAEE). The stake in question is valued at RMB 7.37072 million ($1.20 million).
Shanghai Jiayi Cold-formed Section Steel Factory, which was established in December 1989 with a registered capital of RMB 15.8333 million ($2.59 million), is a manufacturer and exporter of square steel tubing, welded tube, channel steel, guardrails and stainless section steel. Besides the 40 percent owned by Baosteel, the remaining stakes in the company are owned by Shanghai Jiading Urban Collective Industrial Association and Shanghai Jiading Collective Economic Association, with 45 percent and 15 percent of shares respectively.
Jiayi Cold-formed Section Steel Factory has seen its profits decline in recent years, while it registered a net loss of RMB 4.0936 million ($0.67 million) in 2012. In the current year up to July 31, its operating revenue and net profit amounted to RMB 39.0108 million ($6.37 million) and RMB 2,200 ($359.4) respectively.