MAANSHAN IRON (00323) announced that on September 22, 2025, Magang Limited entered into a capital reduction agreement with Baowu Water Services and eighteen other shareholders. According to the capital reduction agreement, three shareholders including Magang Limited will participate in the capital reduction, while the remaining sixteen shareholders will not participate in the reduction.

Magang Limited will contribute circulating water assets related to Baowu Water Services, valued at RMB 538 million (including tax), for the capital reduction of Baowu Water Services. Following this transaction, Magang Limited's shareholding in Baowu Water Services will decrease from 14.977% to 3.151%.

This capital reduction aims to enhance Magang Limited's operational efficiency and effectiveness, and will not have a material impact on its daily operations and financial condition. Through this capital reduction, Magang Limited will acquire circulating water assets closely related to its production operations, which will help reduce operating costs, improve coordination and integration of production operations, and strengthen production stability.