Financial News Agency (Shanghai, Editor Qi Lin) News, The world's largest electrolytic aluminum company China Hongqiao (01378.HK) made an announcement on Monday night, becoming the latest catalyst for its stock price to rise. The company's stock price rose sharply in early trading on Tuesday More than 6%. The announcement shows that Shandong Hongqiao New Materials Co., Ltd., a subsidiary of China Hongqiao , has introduced strategic investors and increased its capital by a total of 6.8 billion yuan; most importantly, the announcement also revealed that Shandong Hongqiao intends to spin off and go back to the domestic market.
announced that in order to further expand the company’s shareholder base and introduce strategic investors, Shandong Hongqiao and its parent company Hongqiao Investment (Hong Kong) (both indirect subsidiaries of China Hongqiao ) and CCB Investment have recently reached an agreement In the capital increase agreement, CCB Investment has agreed to subscribe for 1 billion yuan of shares in Shandong Hongqiao. Together with two other previous investors, Changzhe Hongji and Changzhe Hongye, the three companies have subscribed for a total of 3.8 billion yuan of new capital in Shandong Hongqiao; at the same time, Hongqiao Investment (Hong Kong) agreed to simultaneously increase capital to Shandong Hongqiao with 3 billion yuan of the distributable profits of Shandong Hongqiao, which is equivalent to converting dividends into equity capital. As of the announcement date, all the above capital increases have been completed. Before the capital increase of
, Shandong Hongqiao was 100% held by Hongqiao Investment (Hong Kong). After the capital increase is completed, Shandong Hongqiao will be held approximately 94.52% by Hongqiao Investment (Hong Kong), approximately 3.25% by Changzhe Acer, approximately 1.44% by CCB Investment and approximately 1.44% by Changzhe Hongye. 0.79%. There are also some mysteries in the announcement content of
. The announcement stated that CCB Investment has been granted equity options. If Shandong Hongqiao's equity is not converted into listed shares within 36 months after the capital increase date, CCB Investment has the right to request in writing China Hongqiao , Shandong Hongqiao, etc. Repurchase the equity of Shandong Hongqiao held by CCB Investment at that time. The repurchase price will be calculated based on the actual number of investment days of CCB Investment and the annual interest rate of 8%.
CCB Investment is a wholly-owned subsidiary of China Construction Bank. It is the first financial assets investment company in China to obtain a business license and open business.
China Hongqiao also pointed out that the introduction of investors as strategic shareholders of Shandong Hongqiao will help further deepen cooperation with strategic investors, including providing strategic resource support to the group, and will also contribute to the group’s future development Lay a more solid foundation for business development. The introduction of strategic investors such as will also help the group further promote the group's domestic capital market operations and make full use of the domestic capital market platform to improve the group's capitalization level.
At present, China Hongqiao is only listed on the Hong Kong Stock Exchange, so the so-called "conversion into listed shares within three years" and "further promoting the group's domestic capital market operations" in the announcement clearly reveal that it plans to spin off Shandong Hongqiao in the future. Bridge’s willingness to be listed in China.
Shandong Hongqiao is mainly engaged in mineral processing, smelting of common non-ferrous metals , non-ferrous metal rolling processing, sales of metal materials, sales of coal and products, and import and export of goods. It is the flagship business of China Hongqiao . Shandong Hongqiao’s net profit after tax in 2020 was 11.14 billion yuan. For comparison, China Hongqiao’s net profit after tax in 2020 was only 10.496 billion yuan.
Since last year, due to the impact of the epidemic, aluminum prices and demand for aluminum alloy products have been sluggish. China Hongqiao has been under greater pressure to repay debts, and some of its bonds have been downgraded. Everbright Securities A previous research report stated that 2021 will be the peak of China Hongqiao's debt repayment, with 27.2 billion yuan of remaining debt due.
As aluminum prices rebounded in the second half of last year, China Hongqiao 's stock price also began to rebound from its lows. The latest announcement revealed that it has introduced strategic investors such as CCB Investment and plans to spin off domestic listings, which means that China Hongqiao , a traditional manufacturing company, has found a new breakthrough. Its share price rose by more than 6% on Tuesday. Among aluminum stocks, China Aluminum rose 9.3% in early trading, and China Zhongwang also rose 3.45%.
