Shanghai Securities News reported that after completing full listing Pangang Group will appoint several officials to take executive positions of its listed company-Panzhihua Steel & Vanadium Co Ltd to start neatening the inner assets.

 

Panzhihua Steel announces today to invite Mr Yu Zisu present director and secretary of the Party committee of its parent company, to act as its GM; Mr Chen Yong and Mr Zhou Yiping present members of the standing committee of its parent company, to take on its vice GM; retain Mr Zhang Dade, its former GM, to be its vice GM employ Mr Shang Hongde, present member of the standing committee of its parent company to act as its chief accountant. Panzhihua Steel’s former officials will leave their position directly.

 

Along with the personnel adjustment, the listed company also decides to commence the combination of its inner assets. The company notes that it will card and regroup its inner assets to adapt itself to the new management system after the full-listing.

 

In August Panzhihua Steel finally bought in steel, vanadium, titanium and iron ore-related assets from Pangang Group, Pangang, Pangang Chengdu Co and Changcheng Special Steel by respectively issuing private placement of 184 million shares, 187 million shares, 334 million shares and 44.02 million shares to the sellers at share price of CNY 9.59 per share.

 

Though successfully achieving the assets, Panzhihua Steel still faces the fiscal pressures. The 3Q report showed that the company lost CNY 102 million in Q3, accumulatively suffered CNY 1,438 million of deficits. It’s expected in the report that the company would lose about CNY 1,400 million in this year.

 

Under the pressure, Panzhihua Steel is urged to clean up its complex assets. According to the decision made on November 17th by the company’s directorate, Panzhihua Steel to reset the titanium assets into Pangang Group’s titanium co, iron ore assets into the group’s ore co and other assets into the group’s international trading co and academy.

 

The company also wants to launch a supply company to handle the combination of purchasing and supplying businesses.

 

Sources from STEELGURU