As Shougang accelerates its transformation to a city comprehensive service provider, the layout of the existing steel mills is undergoing adjustments. On December 17, some domestic media learned from the Beijing Equity Exchange that Shougang's sale of the equity stake in Malaysia's East Steel Group marks the imminent withdrawal of Shougang from its first overseas steel project. According to the listing information of the Beijing Equity Exchange, Dongfang Iron and Steel Investment Co., Ltd. will sell 40% stake and 83.429 million yuan debt of East Steel Group Co., Ltd. for a price of 860 million yuan. The price for the 40% stake was 30.466 miiliom yuan, the debt price 834.29 million yuan, of which: the principal 681,339,800 yuan, interest 152,552,990 yuan. As of the valuation date, the production of the East Steel Group was suspended. Financial data shows that the business income of the East Steel Group in 2016 was zero and the net loss of 236.54 million yuan. The management of East Steel Group expects to resume production on February 1, 2018, and the total output in 2018 is estimated to be 578,800 tons. The annual output in 2018 and beyond will be maintained at 665,000 tons. According to the Beijing Equity Exchange, the parent company of Dongfang Iron & Steel Investment Co., Ltd. is Shougang International (Sinapore) PTE. LTT, or Shougang International (Singapore) Co., Ltd. According to Shougang's Shougang International official website, Shougang International (Singapore) Co., Ltd. is Shougang International's state-owned wholly-owned subsidiary in Singapore and is also the regional center of Shougang International in Singapore and ASEAN for international trade and investment holding, to carry out iron ore, steel Import and export trade, on behalf of Shougang International Investment Malaysia East Steel project, and the development of new mineral resources investment projects.