On January 6, Gelonghui reported that CHINAHONGQIAO (01378.HK) announced that Weiqiao Aluminum and Shandong Hontron Aluminum Industry Holding signed a "Share Issuance Agreement for Asset Purchase Intentions". Shandong Hontron Aluminum Industry Holding is planning to acquire the entire equity of Hongtuo Industry and issue new shares to the existing Shareholders of Hongtuo Industry, including Weiqiao Aluminum, as the purchase consideration.
On January 6, 2025, the Board of Directors of Shandong Hontron Aluminum Industry Holding passed the plan for this Trade. Accordingly, the company’s indirect non-wholly owned subsidiary Shandong Hontron Aluminum Industry Holding plans to issue new shares to the existing Shareholders of Hongtuo Industry (including Weiqiao Aluminum) to purchase 100% of the target shares of Hongtuo Industry held by them. After this Trade is completed, the company's shareholding ratio in Shandong Hontron Aluminum Industry Holding will increase correspondingly, and Shandong Hontron Aluminum Industry Holding and Hongtuo Industry (through Shandong Hontron Aluminum Industry Holding) will continue to operate as subsidiaries of the group.
This Trade is beneficial for enhancing the group’s level of asset securitization and market influence, achieving asset integration to improve management efficiency and performance, and promoting the long-term development of the group. At the same time, this Trade will help (including but not limited to) improve the asset quality of Shandong Hontron Aluminum Industry Holding, significantly enhance its financial condition and profitability; it will also contribute to establishing Shandong Hontron Aluminum Industry Holding as a leading listed company in the Aluminum Industry, enhancing overall value and maximizing Shareholder interests.
