Shanxi Chengcai Auctions 1.7 million tons of steel production capacity quotas and 1.65 million tons of iron production capacity quotas

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Recently, the Alibaba Asset Platform issued an auction announcement stating that the 1.7 million tons of steel production capacity and the 1.65 million tons of iron production capacity held by Shanxi Chengcai Steel Co., Ltd. will be put up for auction at 10:00 on January 8, 2026. The announcement states that, given that Shanxi Chengcai Iron and Steel Co., Ltd. (hereinafter referred to as “Chengcai Iron and Steel”) is unable to repay its overdue debts and clearly lacks the capacity to do so, the Intermediate People’s Court of Taiyuan City, Shanxi Province, has ruled to initiate bankruptcy proceedings against Chengcai Iron and Steel and appointed a administrator. To optimize the disposal of the Chengcai Steel assets, following multiple rounds of public bidding, interested parties have already paid a deposit to the manager. In December 2025, the administrator submitted the \"Notice of Vote on Adjusting the Method of Realizing Certain Assets of Shanxi Chengcai Iron and Steel Co., Ltd.\" (hereinafter referred to as the \"Vote Notice\") to the creditors’ meeting for voting, and it was approved. This tender announcement will be issued in accordance with the aforementioned voting notice. The administrator of Shanxi Chengcai Steel Co., Ltd. (hereinafter referred to as the “administrator”) will conduct bidding activities on the Alibaba Auction platform of Taobao.com (hereinafter referred to as the “platform”, website: https://susong.taobao.com/) from 10:00 on January 8, 2026, to 10:00 on January 9, 2026 (excluding any extensions) (the entity conducting the disposal: the administrator of Shanxi Chengcai Steel Co., Ltd.) ； Supervising authority: Taiyuan Intermediate People’s Court of Shanxi Province ； Bankruptcy service provider: Taiyuan Public Resources Auction Center Co., Ltd.) hereby announces the following: 1. Items up for auction: 1.7 million tons of steel production capacity and 1.65 million tons of iron production capacity held by Shanxi Chengcai Steel Co., Ltd. (hereinafter referred to as “Chengcai Steel”). The items up for bid include: 1) a steel production capacity of 1.7 million tons, with an assessed value of 918,238,000 yuan (excluding VAT); the starting bid price is 486,716,800 yuan ； 2. Iron production capacity of 1.65 million tons; estimated value: 557.403 million yuan (excluding VAT); starting bid price: 295.2832 million yuan. The aforementioned assets are to be disposed of collectively. The total appraised value is 1,475,641,000 yuan (excluding VAT). The starting bid price is 782,000,000 yuan. The bidding deposit required is 190,000,000 yuan. The minimum increment for bids is 1,000,000 yuan and its multiples. 1. Special reminder: The proportion of the starting bid price for steel production capacity = 486,716,800 yuan / 782,000,000 yuan = 62.24%; the proportion for iron production capacity = 295,283,200 yuan / 782,000,000 yuan = 37.76%. The transaction price for steel production capacity indicators = total transaction price of such indicators * 62.24%; the transaction price for iron production capacity indicators = total transaction price of such indicators * 37.76%. The unit price per steel production capacity indicator = transaction price for steel production capacity indicators / 1.7 million tons; the unit price per iron production capacity indicator = transaction price for iron production capacity indicators / 1.65 million tons. Within [4] months after the introduction of the policy on capacity replacement in the steel industry, if the number of steel and iron production capacity indicators confirmed by the competent administrative authorities differs from the number of indicators offered in this bidding process, settlement will be carried out based on the above-mentioned unit prices. If it is confirmed that all capacity indicators are invalidated, this bidding will be invalid. The administrator shall return to the bidder the amount paid for the purchase, interest-free. 2. This auction adopts a sealed-bid ascending-price method with a reserve price. The reserve price serves as the starting bid. A sale can only be concluded if at least one bidder registers and submits a bid that is not lower than the starting bid. II. Qualifications for Bidders 1. Bidders must be those who have registered with the administrator of Chengcai Steel in accordance with the recruitment announcement and who have previously paid a deposit of 10 million yuan to the administrator. 2. Bidders may appoint an agent (a natural person with full civil capacity) to bid on their behalf; however, the appointment procedures must be completed in accordance with legal requirements prior to the start of the bidding ； Upon successful bidding, the bidder (the legal representative or the person in charge of a non-legal entity) must go to the administrator together with the authorized agent to complete the relevant subsequent delivery procedures. 3. The bidder is aware that the relevant policies on steel production capacity replacement issued by agencies such as the Ministry of Industry and Information Technology have not yet been officially introduced. Whether the bidder succeeds in making a replacement after winning the bid for this steel production capacity is solely at the bidder’s own risk; the payment made for the steel production capacity will not be refunded