Nanjing Iron and Steel Co., Ltd. (abb. NISCO) is a publicly traded steel maker based in Nanjing, Jiangsu Province, China. The parent company of NISCO is Nanjing Nangang Iron and Steel United Co., Ltd. (), a joint venture of Hong Kong listed company

Fosun International Fosun International Limited is a Chinese multinational conglomerate holding company. Founded in 1992 by Guo Guangchang and four others, the company is headquartered in Shanghai and was incorporated in Hong Kong in 2004. Its Co-CEOs are Chen Q ...

(the stake was jointly held by Fosun International and its subsidiaries) and Chinese state-owned enterprise Nanjing Iron and Steel Group in a 60–40 ratio. NISCO involves the pressing and

smelting Smelting is a process of applying heat to ore, to extract a base metal. It is a form of extractive metallurgy. It is used to extract many metals from their ores, including silver, iron, copper, and other base metals. Smelting uses heat and a ...

ferrous metal In chemistry, the adjective Ferrous indicates a compound that contains iron(II), meaning iron in its +2 oxidation state, possibly as the divalent cation Fe2+. It is opposed to "ferric" or iron(III), meaning iron in its +3 oxidation state, suc ...

s and sales of steel materials. NISCO was a constituent of small cap SSE 380 Index from December 2015 to December 2017. According to

World Steel Association World Steel Association, often abbreviated as worldsteel, is the international trade body for the iron and steel industry. The association is one of the largest and most dynamic industry associations in the world, with members in every major st ...

(Chinese companies data was provided by

China Iron and Steel Association China Iron and Steel Association (CISA, ) is a national, non-profit organization founded in 1999 on the basis of China Metallurgical Enterprise Management Association. CISA members consist of China’s steel enterprises, institutions, societies and ...

), the corporation was ranked the 45th in 2015 the world ranking by production volume (8.590 million metric tons).

History

The steel plant in Nanjing was founded in 1958. In 1999 Nanjing Iron and Steel Group spin-off some of the assembly line of the steel plant, incorporating Nanjing Iron and Steel Co., Ltd. (NISCO). The company became a publicly traded company in 2000 on the Shanghai Stock Exchange, despite the parent company still owned 70.95% shares. However, after several disinvestment, it no longer the controlling shareholder of the listed company. Instead, the controlling shareholder was replaced by joint ventures of Nanjing Iron and Steel Group in 2003 and again in 2009 under another legal person. The direct parent company also received the unlisted steel manufacturing assets from Nanjing Iron and Steel Group. In 2010, NISCO acquired some assets (themselves were incorporated as , in short ) from the direct parent company, Nangang United, as those businesses were classified as related parties but the listed company had business relation with them. NISCO paid the direct parent company in an all-share deal for nominal value, making Nangang United owned 83.78% shares of the listed company. According to the public filings, after the acquisition, , the listed company had a total assets (in

consolidated financial statement Consolidated financial statements are the " financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries are presented as those of a single economic enti ...

) of , comparing to parent company Nangang United's . The net assets (excluding minority interests) were and respectively. NISCO also had a long business partnership with Hong Kong listed company for trading iron ore. In 2011, NISCO acquired 10% shares of a company, All Wealthy Capital, from the chairman of Prosperity International, , for US$50 million. The shares were sold back to Wong for US$50 million plus interests, as the initial public offering of All Wealthy Capital had failed, trigging the initial purchase condition. Since December 2014, Prosperity International became a related parties of NISCO, as Nanjing Iron and Steel Group owned more than 10% shares of Prosperity International. Circa 2016, NISCO signed an agreement with banks for debt-to-equity swap. The capital increase of the subsidiary by the bank and other parties, was completed in 2017. In the same year NISCO also issued new shares via private placement.

Equity investments

* Tiangong International (5.06%)

Shareholders

In 2003 the parent company of the listed company formed a joint venture "Nanjing Iron and Steel United" () with a consortium of civilian-run enterprises: Fosun High Technology and its parent company Guangxin Technology (). The stake of NISCO that held by Nanjing Iron and Steel Group was injected to Nanjing Iron and Steel United as capital. After the deal, Nanjing Iron and Steel Group owned 40% stake of Nanjing Iron and Steel United, Fosun High Technology (and its subsidiary) owned 50% and Guangxin Technology owned 10%. The parent company of Fosun High Technology was later changed to Hong Kong listed company

, which also acquired the stake from Guangxin Technology. However, Fosun International was still controlled by the shareholder of Guangxin Technology as of 2018. In 2009, a new intermediate holding company, "Nanjing Nangang Iron and Steel United Co., Ltd." (, known as Nanjing Nangang or ()) was incorporated, Nanjing Iron and Steel United became its wholly owned subsidiary, while Nanjing Iron and Steel United owned 62.69% stake of NISCO at that time.

Baosteel Group China Baowu Steel Group Corp., Ltd., commonly known as Baowu, is a state-owned iron and steel company headquartered in the Baosteel Tower in Pudong, Shanghai, China. The company was formed by Baosteel Group absorbing its smaller state-owned pe ...

was the second largest shareholder of the listed company for just 2.42% shares at that time. As at 31 December 2015, Nangang United had disinvested NISCO to just 48.19%. On 31 December 2015, Fosun International also appointed Nanjing Iron and Steel Group as its proxy for 10% stake of Nangang United, making Nangang United was classified as a joint venture and not consolidated in Fosun International's

s, while Nanjing Iron and Steel Group regained the joint-controlling status on the publicly traded company. * Guo Guangchang ** Fosun International Holdings (64.45% owned by Guo Guangchang) ***

(, 71.37% owned by Fosun International Holdings) **** Nanjing Nangang Iron and Steel United (60% owned by Fosun International) ***** Nanjing Iron and Steel (48.19% owned by Nangang United) **** Nanjing Iron and Steel Group (owned 40% of Nanjing Nangang Iron and Steel United) *** (owned 51% of Nanjing Iron and Steel Group) ** worker union of Nanjing Iron and Steel Group (owned 36.07% of Nanjing Iron and Steel Venture Investment) ---- * Nanjing Municipal People's Government via Nanjing New Industrialization Investment Group (owned 49% of Nanjing Iron and Steel Group) * Liang Xinjun (owned 24.44% of Fosun International Holdings) * Wang Qunbin (owned 11.11% of Fosun International Holdings) * other shareholders of Fosun International (owned 28.63% of Fosun International) ---- * employees ownership scheme (2.18% of NISCO) * National Social Security Fund (0.68% of NISCO) * other shareholders of NISCO (48.95% of NISCO)

References

External links

*
Official website of "Nanjing Iron & Steel Group" and "Nanjing Nangang Iron & Steel United"
{{Steel companies of the People's Republic of China Steel companies of China Civilian-run enterprises of China 1958 establishments in China Government agencies established in 1958 Chinese companies established in 1999 Manufacturing companies established in 1999 Manufacturing companies based in Nanjing Fosun International Companies listed on the Shanghai Stock Exchange Privatization in China Employee-owned companies of China