Sinosteel Corporation has recently promoted the mixed ownership reform and introduced the Zhongze Group, a private enterprise in Liaoning province, to join its subsidiary.
Earlier, in July, Sinosteel Corporation Limited, a subsidiary of Sinosteel Corporation, said that it will sell its 70 percent stake in the Jilin Carbon Co., Ltd for 350 million yuan, according to the China Beijing Equity Exchange.
In September, the Zhongze Group obtained the deal to buy the 70 percent stake in the Jilin Carbon Co., Ltd through the bidding.
After the transaction, Sinosteel Corporation Limited will still hold a 30-percent stake in the Jinlin Carbon and Zhongze Group will become a controlling shareholder of the Jilin Carbon Co., Ltd.
Established in August 2013 with a registered capital of 51 million yuan, Jilin Carbon engages in R&D, production, processing and sales of carbon and graphite products.
Financial data of the Jilin Carbon shows that its business performance is lackluster. In 2014, it earned 1.33 billion yuan of operating revenue, but incurred a net loss of 481.36 million yuan. In the first half of 2015, its operating revenue amounted to 467.84 million yuan, with a net loss of 153.7 million yuan.
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