Shandong Hongchuang approves asset acquisition, major relocation plans

Shandong Hongchuang Aluminum Industry Holding held its second extraordinary general meeting of shareholders in 2025, approving several key resolutions including revisions to the company's articles of association and an asset acquisition. The asset acquisition involves the issuance of shares to purchase assets, a transaction deemed to have no material adverse impact on the company's future operating performance and financial condition. The acquired assets are valued at CNY 63.518 bn, a 48.62% increase over their book value.

The company plans to relocate 1.52m tons of electrolytic aluminum production capacity from Shandong to Yunnan between 2025 and 2027, maintaining total capacity at 6.459m tons. This strategic move aims to leverage Yunnan's abundant hydropower resources, reduce electricity costs, and enhance the company's profitability.

In terms of financial performance, the company's net profit for 2024 significantly increased by 168.91% to CNY 18.144 bn, with total operating income rising by 15.77% to CNY 149.289 bn. Forecasts for 2025-2029 anticipate stable to increasing sales prices and decreasing unit costs for key products, leading to improved profitability.