On 25 December, TISCO Stainless Steel announc ed that Shanxi State-owned Capital Operation Co., Ltd., Baowu Steel and TISCO sianed the "oratuitous transfer transitional period management arrangement agreement for TISCO". During the period from signing date of the transitional period agreement to completion date of gratuitous transfer equity change commercial registration, Baowu Steel will act as the trustee of TISCOOn 21 Auqust. Shanxi State-owned Capital Operation Co., Ltd. and Baowu Steel signed the gratuitous transfer agreement, according to which the former will transfer 51% euities of TiSCO to the latterin a gratuitous manner. Based on the transitional period agreement arrangements, TISCO's shareholdina structure, board of directors and management will maintain the status auo durina the transitional period andl all parties will work closely to keep TISCO's business operation, board of directors and management steady.Once receiving all approvals for the gratuitous transfer, all parties will make ioint efforts to complete TISCO's equity change commercial reoistration and other settlement arrangements as soon as possibleAccording to the announcement, by the signing date of the transitional period aqreement. Shanxi Stateowned Capital Operation Co. Ltd. held 100% equities of TISCO and TISCO held approximately 3.61 billion shares of TISCO Stainless Steel, accounting for 63.31% of the total. After the qratuitous transfer is concluded Baowu Steel will hold 51% equities of TISCO and be an indirect shareholder of TISCO Stainless Steel, ano the State-owned Assets Supervision and Administration Commission of the State Council, the controlling shareholder of Baowu Steel, will be the actual controller of TISCO Stainless Steel.