China

Baoshan Iron & Steel’s Holding In Online Steel Trading Subsidiary Ouyeel Decreases To 36.72%; Will Not Consolidate Its Earnings

Summary:

  • Baoshan Iron & Steel (600019.SS) recently announced that its holding in Ouyeel International Co., Ltd., an online steel transaction platform, has been diluted from 51% to 36.72%, as reported by CNFOL.
  • Starting from August, Baoshan Iron will not consolidate Ouyeel’s income and expenses into its earnings reports.

Why It Matters:

  • Founded in 2015, Ouyeel’s platform provides a wide range of services including industry news, transactions, logistics and storage, processing, investment and fundraising, plus financial products for steel companies. In May, Ouyeel raised more capital by introducing six strategic investors.
  • The six strategic investors are Benxi Steel Group Corp., Beijing Shougang Fund Investment Company,¬†Jiangsu Shagang Group Company Ltd., as well as Global Logistic Properties (Shanghai), CCB Trust Co. Ltd., and Mitsui & Co. Ltd.
  • Ouyeel posted RMB 32.904 billion in revenue¬†and a net loss of RMB 111 million for the first half of 2017.