1On January 24th, Chuangxin Industrial Group Co., Ltd. ("Chuangxin Industrial" for short, stock code: 02788.HK) – a Chinese integrated producer of electrolytic aluminum and alumina – was officially listed on the Main Board of the Hong Kong Exchanges and Clearing Limited (HKEX). This marks that the company has officially entered a new stage of capitalized and internationalized development.

In this global offering, the company issued a total of 500 million shares. Among them, the Hong Kong public offering portion received approximately 447.2 times subscription, reflecting a enthusiastic market response. The final offer price was set at HK$10.99 per share, with a trading unit of 500 shares per lot. The total funds raised from the global offering amounted to approximately HK$5.495 billion.This issuance attracted 17 well-known cornerstone investors, including Hillhouse, China Hongqiao, Taikang Life, Glencore, and Mercuria. Their total subscription amount reached US$351 million, accounting for nearly 50% of the shares offered globally. This fully demonstrates the high recognition of the international capital market for the company's business model and development prospects.

As of the noon closing on the listing day, Chuangxin Industrial had an outstanding stock price performance, closing at HK$15, representing an increase of 36.49% compared with the offer price, and delivering a prominent market performance.

Integrated Layout Synergized with Green Energy to Build Core Competitiveness

Chuangxin Industrial focuses on the aluminum industry as its core, specializing in alumina refining and electrolytic aluminum smelting, and has built an integrated ecosystem of "Energy – Alumina Refining – Electrolytic Aluminum Smelting". Since 2012, the company has deeply rooted in two resource-rich regions, namely Huolin Gol in Inner Mongolia and Binzhou in Shandong. It has achieved a high level of self-sufficiency in alumina and electricity: in 2024, its self-sufficiency rate in alumina was approximately 84%, and the self-sufficiency rate in electricity was about 88%, both significantly higher than the industry average.

At the listing ceremony, Cui Lixin, Chairman of Chuangxin Industrial, stated: "Taking this listing as an opportunity, Chuangxin Industrial will continue to advance the transformation of talents, products, energy and capital, and further consolidate its advantages in cost, quality, technology and services. In the future, the company will focus on globalized, green, high-end and intelligent development, and accelerate the building of a world-class green aluminum industry group."

Green Transformation Accelerates, Creating Development Opportunities for Low-Carbon Aluminum Products

Facing the global trend of energy transition, Chuangxin Industrial has proactively laid out its green energy initiatives to drive the low-carbon development of the aluminum industry. The company has already put some self-constructed wind and solar power stations into operation, and plans to increase the proportion of green energy usage to over 50% by the end of 2026. This will effectively reduce electricity costs and enhance its sustainable development capabilities.

Leveraging its highly integrated industrial chain and the advantage of low-cost electricity, the company has maintained leading operational efficiency. According to the 2024 production statistics, the company’s electrolytic aluminum production base in Huolin Gol, Inner Mongolia, has become the fourth-largest electrolytic aluminum smelter in North China. Its high-quality products with a low-carbon footprint possess strong competitiveness in both domestic and international markets.

Steady Growth in Performance and Sustained Improvement in Profitability

In recent years, Chuangxin Industrial has maintained steady performance. The company's revenue increased from RMB 13.49 billion in 2022 to RMB 13.815 billion in 2023, and further rose to RMB 15.163 billion in 2024. As of the first five months of 2025, the revenue reached RMB 7.214 billion, representing a year-on-year growth of 22.6%.

Benefiting from the synergistic effect of its alumina and electrolytic aluminum businesses as well as its cost control capabilities, the company's gross profit margin increased from 15.1% in 2022 to 16.9% in 2023, and further jumped to 28.2% in 2024. The net profit also achieved significant growth, rising from RMB 913 million in 2022 to RMB 1.081 billion in 2023, and surging to RMB 2.63 billion in 2024. These figures demonstrate the company's outstanding profitability and risk resistance.

Seize Global Opportunities in the Aluminum Industry and Advance Overseas Capacity Layout

According to a research report by CRU, the global consumption of electrolytic aluminum is expected to grow at a compound annual growth rate (CAGR) of approximately 1.6% from 2025 to 2028. As the world’s largest electrolytic aluminum market, China’s industry scale reached about RMB 897 billion in 2024, accounting for roughly 71% of the global total. Moreover, it is projected that China will continue to face an annual demand gap of over one million metric tons until 2034.

In response to the continuously growing market demand, Chuangxin Industrial focuses on the two high-value-added segments of alumina refining and electrolytic aluminum smelting, and continuously optimizes production efficiency. The company's per capita output of electrolytic aluminum is approximately 590 to 670 tons, which is 2.2 to 2.6 times the industry average. In 2024, the company controlled the cash cost per ton of electrolytic aluminum at approximately RMB 15,112, ranking among the top 5% in China and the top 30% globally, demonstrating outstanding cost management capabilities.

Furthermore, the demand for electrolytic aluminum in the Middle East and Southeast Asia is expected to witness rapid growth, with compound annual growth rates (CAGRs) of 4.6% and 3.0% respectively. The company has launched a comprehensive electrolytic aluminum industrial chain project in Saudi Arabia, actively expanding its overseas production capacity, which aligns with the global trend of the aluminum industry shifting to regions with low energy consumption.

Focus on the Future: Expand Production Capacity, Strengthen R&D, and Deploy a Global Layout

Looking ahead, Chuangxin Industrial will make full use of the funds raised from this listing to further expand production capacity, enhance technological R&D capabilities, strengthen green energy development, and support daily operations as well as overseas layout. Against the backdrop of sustained global aluminum demand growth and structural supply gaps in China, the company is expected to continuously seize market opportunities and consolidate its leading position in China’s and even the global green aluminum industry by virtue of its high self-sufficiency rate, low costs, and forward-looking overseas production capacity layout.

Leveraging its integrated ecosystem and advanced technologies, Chuangxin Industrial will continue to advance the sustainable development of its electrolytic aluminum and alumina businesses, deepen the expansion of global markets, and strive to become an internationally competitive leading enterprise in the green aluminum industry.

Chuangxin Industrial Group Co., Ltd. Donates HK$3 Million to the Hong Kong Stock Exchange

Cui Lixin, Chairman of Chuangxin Industrial Group Co., Ltd., exchanged gifts with the Hong Kong Stock Exchange (HKEX).

About Chuangxin Industrial Group Co., Ltd.

Chuangxin Industrial Group Co., Ltd. (Stock Code: 02788.HK) is an integrated manufacturing enterprise focusing on the upstream segment of the aluminum industry chain – alumina refining and electrolytic aluminum smelting. Its business scope covers the production and sales of electrolytic aluminum and alumina products.Since 2012, the company has strategically established two major production bases in Huolin Gol (Inner Mongolia) and Binzhou (Shandong), and built an integrated ecosystem of "Energy – Alumina Refining – Electrolytic Aluminum Smelting". As of December 31, 2024, the company’s self-sufficiency rate in alumina reached approximately 84%, and its self-sufficiency rate in electricity stood at around 88%.According to a report by CRU, the company ranks among the top 5% of electrolytic aluminum enterprises in China in terms of cash cost control per ton of aluminum, and also maintains significant competitiveness on a global scale.Committed to advancing green transformation, Chuangxin Industrial continuously enhances its competitiveness and market recognition through sustained R&D and industrial chain integration, with the long-term goal of achieving low-carbon and sustainable development.