CHUANGXIN IND (02788) plans to invest more than 1.5 billion yuan to acquire the remaining 41.5% stake in Shandong Chuangyuan and all the shares of Tongliao Wise Mining.

CHUANGXIN IND (02788) announced that on March 17, 2026, Inner Mongolia Chuangyuan (a wholly-owned subsidiary of the company), Innovation Group, and Shandong Chuangyuan entered into a Shandong Chuangyuan equity transfer agreement, under which Inner Mongolia Chuangyuan will conditionally acquire the remaining 41.5% equity of Shandong Chuangyuan from Innovation Group for approximately RMB 525.5 million. On the same day, Inner Mongolia Chuangyuan, Innovation Group, and Tongliao Smart Mining entered into a Tongliao Smart Mining equity transfer agreement, under which Inner Mongolia Chuangyuan will conditionally acquire all the shares of Tongliao Smart Mining from Innovation Group for approximately RMB 1 billion. After the proposed acquisitions are completed, both Shandong Chuangyuan and Tongliao Smart Mining will become wholly-owned subsidiaries of the company. It is understood that as of the date of this announcement, Shandong Chuangyuan is owned by Inner Mongolia Chuangyuan and Innovation Group at 58.5% and 41.5% respectively. Shandong Chuangyuan is mainly engaged in the production and sale of alumina and other related products. Considering the group's current available internal funds and external financing options, the group proposes to further acquire the remaining 41.5% equity of Shandong Chuangyuan. This acquisition will (i) enable the company to establish a comprehensive, independent, stable, and efficient industrial chain, ensuring the upstream supply of alumina, reducing operational risks caused by fluctuations in raw material prices, ensuring long-term production and operation stability, and enhancing the company's strategic position and risk tolerance in the industry; and (ii) grant the group full control over Shandong Chuangyuan, significantly simplifying the decision-making process. Tongliao Smart Mining is fully owned by Innovation Group as of the date of this announcement. Tongliao Smart Mining is mainly engaged in coal mining, sales, coal washing, and coal selection. Tongliao Smart Mining holds the exploration mining rights for the No. 4 minefield coal resources in Huolinguole coalfield in Inner Mongolia, with a resource reserve of 9.62 billion tons, recoverable reserves of 4.81 billion tons, and planned production capacity of 6 million tons/year. The proposed acquisition of Tongliao Smart Mining will: (1) expand business into the upstream core energy business, further enhancing the company's ability to independently control the industrial chain, stabilize the coal supply source, reduce reliance on external market purchases, effectively hedge operational risks caused by large fluctuations in coal prices, policy adjustments, and other external factors, ensuring stable and reliable power supply for the company's production, improving overall operational efficiency and ability to sustain development; (2) help further optimize the company's industrial chain layout, benefiting from strong synergies in energy supply, power generation, and aluminum smelting; and (3) reduce the company's procurement, logistics, and intermediate link costs, reduce production costs, improve the profitability of aluminum products, strengthen the company's cost advantages, and its ability to face industry competition and cyclical fluctuations, stabilize operational performance.