How is the reorganization of Jiuquan Red Star going?

The overall listing plan of Jiugang Group Co., Ltd. (hereinafter referred to as Jiugang Group) will be announced this week. Jiugang Hongxing (6.85, 0.00, 0.00%)(600307) announced last night that the company learned from the controlling shareholder Jiugang Group that the restructuring plan had been preliminarily decided; The board of directors of Jiugang Hongxing plans to hold a meeting this week to review the restructuring plan, and the company's shares will continue to be suspended.

Jiugang Hongxing has suspended trading since February 6th. Jiugang Hongxing said at that time that the board of directors would be held within 30 days to review the major asset restructuring plan; Otherwise, the company's shares will resume trading on March 9 at the latest.

10 days later, Jiugang Hongxing announced that Jiugang Group intends to list the main steel industry as a whole.

According to the available data, as early as 2007, the news of the overall listing of the main steel business of Jiuquan Iron and Steel Group was reported in the market, and the reason for delaying the launch at this time was that its joint venture plan was stranded.

On July 1 2008, Jiuquan Hongxing announced that, after evaluation and approval, it planned to set up a joint venture company with international mineral resources companies under the Eurasian Industrial Consortium of Kazakhstan with all assets such as steel industry and mines. Although the cancellation of the joint venture has not been announced, according to media reports, the joint venture plan has been rejected by SASAC and other relevant departments.

Hongxing is a leading iron and steel enterprise in northwest China, but at present, its steel production capacity is less. If it finally goes public as a whole, the profitability of Red Star will increase exponentially.