Chuangxin IND (02788) announced that on March 17, 2026, Inner Mongolia Chuangyuan (a wholly-owned subsidiary of the company), Chuangxin Group, and Shandong Chuangyuan entered into an equity transfer agreement. Pursuant to this agreement, Inner Mongolia Chuangyuan will conditionally acquire the remaining 41.5% equity interest in Shandong Chuangyuan from Chuangxin Group for a consideration of approximately RMB 525.5 million. On the same day, Inner Mongolia Chuangyuan, Chuangxin Group, and Tongliao Smart Mining entered into another equity transfer agreement. Under this agreement, Inner Mongolia Chuangyuan will conditionally acquire 100% of the equity in Tongliao Smart Mining from Chuangxin Group for a consideration of approximately RMB 1 billion. Upon completion of the proposed acquisitions, both Shandong Chuangyuan and Tongliao Smart Mining will become wholly-owned subsidiaries of the company. It is reported that, as of the date of this announcement, Shandong Chuangyuan is 58.5% owned by Inner Mongolia Chuangyuan and 41.5% owned by Chuangxin Group. Shandong Chuangyuan is primarily engaged in the production and sales of alumina and other related products. Considering the group's currently available internal funds and potential external financing, the group proposes to further acquire the remaining 41.5% stake in Shandong Chuangyuan. This acquisition will (i) enable the company to establish a fully self-controlled, robust, and efficient industrial chain, secure the supply of upstream alumina, reduce operational risks caused by raw material price fluctuations, ensure long-term stability in production operations, and enhance the company's strategic position and risk resilience within the industry; and (ii) grant the group full control over Shandong Chuangyuan and significantly streamline the decision-making process. Tongliao Smart Mining is wholly owned by Chuangxin Group as of the date of this announcement. Tongliao Smart Mining is primarily engaged in coal mining, sales, coal washing, and coal preparation. Tongliao Smart Mining holds the exploration rights for coal resources in the No. 4 mine field of the Huolinhe mining area in Inner Mongolia. The resource reserves of these mine fields amount to 962 million tons, with recoverable reserves of 481 million tons and a planned production capacity of 6 million tons per year. The proposed acquisition of Tongliao Smart Mining will: (1) expand the business into upstream core energy operations, further enhancing the company's ability to independently control its industrial chain, stabilize the source of coal supply, reduce reliance on external market procurement, effectively hedge against operational risks arising from significant coal price volatility, policy adjustments, and other external factors, ensure a stable and reliable power supply for the company's production, and improve overall operational efficiency and sustainable development capabilities; (2) help further optimize the company's industrial chain layout, thereby benefiting from strong synergies between energy supply, power generation, and electrolytic aluminum smelting operations; and (3) reduce the company's procurement, logistics, and intermediary costs, lower production expenses, improve the profitability of electrolytic aluminum products, strengthen the company's cost advantage, and enhance its ability to withstand cyclical fluctuations in industry competition, thereby stabilizing operating performance.
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