In November of last year, Hebei Iron & Steel, an indirect controlling shareholder of the company, made a public commitment to transfer its iron ore business assets into the listed entity through legal procedures at fair and reasonable market prices. At the time, Hebei Iron & Steel Group stated that it would actively create favorable conditions for the asset injection process, aiming to start the transfer immediately after the public issuance and acquisition of Sinbo Steel Co., Ltd. The goal was to complete the first batch of asset injections by December 31, 2012, which included clear and profitable iron ore assets to enhance the profitability of the listed company.

The initial batch of assets to be injected mainly included the Sijiaying, Heishan, and Shirengou Iron Mines. These mines are estimated to hold over 1 billion tons of reserves, with an annual production capacity of at least 7 million tons of iron concentrate. The remaining iron ore assets were expected to be gradually injected as conditions allowed, with the ultimate goal of bringing all of the group’s iron ore assets into the listed company.

However, this commitment was not fulfilled within the year. In its latest announcement, Hebei Iron & Steel provided three main reasons for the delay. First, the capital market remained weak, and the company's stock price had been consistently below its net asset value per share. According to the company's quarterly report, the current net asset value per share is 4.03 yuan, but the stock price has hovered around 2.74 yuan, closing at that level on December 27. As a state-owned enterprise, the company must avoid any loss of state assets, meaning any share price increase must not fall below the net asset value.

Second, iron ore prices have been declining since the beginning of the year, negatively impacting the profitability of mining assets. The company argued that injecting these assets now could harm the financial performance of the listed company. This decline in iron ore prices was partly due to weak demand from the steel industry, especially in the second half of the year when prices hit historic lows.

Third, the iron ore assets involved in the injection are large in scale, cover a wide range, and require extensive groundwork, including mining rights expansion, reserve verification, and regulatory approvals. These processes are complex and time-consuming, requiring significant coordination with government authorities.

Despite these challenges, Hebei Iron & Steel has not ruled out future asset injections. In the announcement, the company emphasized that the major shareholder, Hebei Iron & Steel Group, will continue to work toward injecting mature iron ore assets into the listed company. The company reaffirmed its commitment to supporting the sustainable development of Hebei Steel and being accountable to small and medium-sized investors, ensuring that all iron ore business assets eventually enter the listed entity.