Huaigang Special Steel

Jiangsu Shagang Group Huaigang Special Steel Co., Ltd. (known as Huaigang or Huaisteel) is a Chinese steel manufacturer based in Huai'an, Jiangsu Province. It was a subsidiary of privately held company Shagang Group via its publicly traded subsidiary Shagang Company (SZSE: 002075) for 63.79% stake, from 2010 to 2015. As of 31 December 2013, Huaigang accounted for 99.9% revenue and 97% assets of Shagang Company.^[3] However, as of 31 December 2015, Shagang Group owned just 19.88% stake in Shagang Company; in turn Shagang Company owned 63.79% stake of Huaigang.^[4] Shagang Group sold 55.12% stake of Shagang Company in 2015, for about CN¥4.6 billion (or CN¥5.29 per share).^[5]

Huaigang Special Steel

Huaigang logo, bilingual name on the right
Formerly	Huaigang Group Co., Ltd.
Company type	subsidiary
Industry	Manufacturing
Founded	1970 (as steel plant)[1] 1986 (as company) 11 December 1996 (1996-12-11) (as limited company)
Founder	Huai'an Municipal Government
Headquarters	188 Xi'an South Road, Huai'an , China
Products	Steel and coke
Revenue	CN¥10.781 billion (2013)
Operating income	CN¥35 million (2013)
Net income	CN¥27 million (2013)
Total assets	CN¥8.131 billion (2013)
Total equity	CN¥3.015 billion (2013)
Owner	Shagang Company (63.79%) Jiangyin Wande (15.45%) others (20.76%)
Footnotes / references in a consolidated basis; equity and profit excluded minority interests; in Chinese Accounting Standards[2]

Jiangsu Shagang Group Huaigang Special Steel Co., Ltd.
Simplified Chinese	江苏沙钢集团淮钢特钢股份有限公司
Traditional Chinese	江蘇沙鋼集團淮鋼特鋼股份有限公司
Transcriptions
Huaigang Special Steel
Simplified Chinese	淮钢特钢
Traditional Chinese	淮鋼特鋼
Transcriptions
Huaigang
Simplified Chinese	淮钢
Traditional Chinese	淮鋼
Transcriptions

As of 4 July 2017^[update], Shagang Company is a constituent of SZSE 200 Index (mid cap index).^[6]

History

Huaigang Group Co., Ltd. (Chinese: 江苏淮钢集团有限公司) was incorporated on 11 December 1996 as a subsidiary of the Economic Commission of Huai'an (the city was known as Huaiyin at that time) for 91.97% stake.^[7] In 2000, Nanjing Iron and Steel Group acquired the controlling stake (93.49%).^[7] It was recapitalized in 2003, making the stake held by Nanjing Iron and Steel Group was diluted to 26.15%.^[7] Moreover, private investors were introduced.^[7] In 2005, the 26.15% stake was returned to Huai'an Municipal People's Government from Nanjing Iron and Steel Group.^[7][8] In June 2006, privately held company Shagang Group acquired 64.40% stake of Huaigang from other private investors.^[7] The stake was injected to a publicly traded company Gaoxin Zhangtong as a reverse IPO in 2010 (now known as Shagang Company).^[7] In December 2006 Huai'an Municipal Government also sold their stake to Jiangyin Wande (Chinese: 江阴万德).^[7] The shareholder of Jiangyin Wande, Li Xinren (Chinese: 李新仁), also owned the shares of Shagang Group.^[7][9]

In 2011 the company was re-incorporated as a company limited by shares, issuing 1.431 billion shares with par value CN¥1 each.

Joint Venture

Huaigang formed a joint venture (Chinese: 江苏天淮钢管) with Tianjin Pipe Corporation. Huaigang owned 40% stake. In 2015 Huaigang sold the stake to Zhangjiagang Xiangbo (Chinese: 张家港翔博贸易) for CN¥250 million.^[10]

Financial data

in a consolidated financial statements (in CN¥)

Shagang Company						Huaigang Special Steel
Year	Revenue	Profit	Assets	Equity	shares %	Revenue	Profit	Profit to parent	Assets	Equity	Equity to parent
2007[11]						8.994 billion	563 million		13.990 billion	1.774 billion
2008[12]						15.347 billion	104 million		16.398 billion	2.489 billion
2009[12]						12.619 billion	110 million		15.060 billion	2.596 billion
2010[12]	12.537 billion	358 million	11.555 billion	1.994 billion	63.79%	12.537 billion	561 million	358 million	10.724 billion	3.210 billion	2.048 billion
2011[12]	15.001 billion	278 million	10.144 billion	2.290 billion		14.934 billion	459 million	293 million	10.100 billion	3.270 billion	2.086 billion
2012[2]	12.148 billion	23 million	8.153 billion	2.319 billion		12.143 billion	22 million	14 million	8.058 billion	3.194 billion	2.037 billion
2013[2]	10.787 billion	28 million	8.382 billion	2.351 billion		10.781 billion	27 million	17 million	8.131 billion	3.015 billion	1.923 billion
2014	10.308 billion	35 million	7.137 billion	2.389 billion
2015	7.357 billion	(81 million)	6.550 billion	2.307 billion