On the evening of July 14, Shandong Steel released an announcement that the State-owned Assets Supervision and Administration Commission of the State Council (SASAC for short) of Shandong province and China Baowu Iron & Steel Group Co. Ltd. planned the strategic reorganization of Shandong Steel Group based on the notice from Shandong Iron and Steel Group Co. Ltd on the same day. This agenda may cause the change of the controlling shareholder and actual controller of the listed company.

As the only steel listed company in Shandong, Shandong Steel has two production bases including Gangcheng, Jinan and Rizhao with over 15.8 million tons crude steel capacity, and remains regional market leader in the field of H-beam steel and plate product in the industry. In 2021, Shandong Steel is expected to produce 14.25 million tons pig iron and 16.55 million tons crude steel and 16.32 million tons steel product (the volume of commodity).

It was revealed that Shandong Steel Group directly held 2.37% shares of Shandong Steel and held 30.26% and 18.24% shares of Shandong Steel through its subsidiaries, Jinan Steel Group and Laiwu Steel Group respectively. Shandong Steel Group is affiliated to the SASAC of Shandong province, so the latter is the actual controller of Shandong Steel. 

On the same day, Jinling Mining was informed of the notice from Shandong Jinling Iron Ore Co. Ltd, which is the controlling shareholder, that SASAC of Shandong province and China Baowu Iron & Steel Group Co. Ltd. planned the strategic reorganization of Shandong Steel Group. This agenda may cause the change of the actual controller of Jinling Mining.

Based on the data, founded in December 1, 2016, China Baowu Iron & Steel Group Co., Ltd. is a joint reorganization of the former Baosteel Group Co., Ltd. and Wuhan Iron & Steel (Group) Company. In September 2019, China Baowu carried out a joint reorganization of Maanshan Iron and Steel Group. In August 2020, China Baowu and TISCO implemented joint reorganization. In October 2020, China Baowu took custody of Sinosteel. In December 2020, China Baowu became the actual controller of Chongqing Steel. With a registered capital of 52.79 billion Yuan and an asset scale of 1,014.1 billion yuan, China Baowu is a pilot enterprise of state-owned capital investment companies. In 2020, China Baowu was regarded as a central enterprise to create a world-class demonstration enterprise by SASAC.