Citic Special Steel successfully won a 40% stake in Shanghai Electric Group Steel Pipe Co., Ltd.

Citic Special Steel issued a notice saying that on January 4, the company held the sixth meeting of the Ninth Board of Directors and the fifth meeting of the Ninth Board of Supervisors to examine and pass the "motion on subsidiary companies participating in bidding for 40% of the equity interest of Shanghai Electric Group Steel Pipe Co., Ltd." It is agreed that CITIC Pacific Special Steel Economic and Trade Co., Ltd. ("Special Steel Economic and Trade"), a wholly-owned subsidiary of CITIC Special Steel Co., Ltd. ("Special Steel Trade"), will participate in the Shanghai Electric (Group) Corporation's ("Shanghai Electric") 40% equity transfer project held by Shanghai Electric (Group) Corporation ("Shanghai Electric") through the Shanghai United property Exchange.

On January 8, 2021, Special Steel, a subsidiary of Citic Special Steel Co., Ltd., received a notice from the Shanghai United property Exchange that Special Steel Trade became the transferee of 40% of the equity project of Shanghai Electric Group Steel Pipe Co., Ltd., and successfully won the underlying assets. the transaction price is 400 million yuan. Recently, Special Steel signed a "property rights transaction contract" with Shanghai Electric.

Electric steel pipe is a controlling company specially set up by Shanghai Electric to control Tianjin Steel Pipe Manufacturing Co., Ltd. ("Tianjin Steel Pipe"). Its core asset is its 51.02% stake in Tianjin Steel Pipe. Tianjin Steel Pipe inherits the core assets related to the original 3.5 million tons of seamless steel pipe production capacity of Tianjin Steel Pipe Group Co., Ltd., has a strong market competitiveness and influence in energy pipe, and has a high market share of products. It is one of the leading enterprises in seamless steel pipe industry in China and even in the world.

Citic Special Steel is a leading enterprise in the special steel industry, and Shanghai Electric is a leading large comprehensive high-end equipment manufacturing enterprise in China. After Citic Special Steel acquires a 40% stake in electric steel pipe, all parties will combine their respective advantages in the industry. Give full play to industrial synergy and brand synergy to jointly create new profit growth points. Through this acquisition, CITIC Special Steel Co., Ltd. will participate in the operation and management of Tianjin steel pipe, which is mainly medium-thin-walled seamless steel pipe, which can effectively complement the existing medium-thick-walled seamless steel pipe of CITIC Special Steel Co., Ltd. it is conducive to improving the variety structure and specification range of seamless steel tubes of both sides, jointly realizing the industrial cluster of coordinated production and marketing of seamless steel tubes, and enhancing the overall scale and competitiveness of the seamless steel pipe business of both sides.

In the future, CITIC Special Steel Company will speed up the expansion of the strategic layout of seamless steel pipe plate by further integrating market resources, expand the company's influence and market share in mechanical processing, oil exploitation, energy, automobile, marine engineering and other related industries downstream of seamless steel pipe, and actively build seamless steel pipe business with Citic Special Steel characteristics. Further enhance the brand influence and industry competitiveness of seamless steel pipe products of CITIC Special Steel Co., Ltd.