CHINAHONGQIAO (01378) will increase its indirect stake in Shandong Hontron Aluminum Industry Holding from approximately 22.98% to approximately 88.99%.

CHINAHONGQIAO (01378) announced that Shandong Hontron Aluminum Industry Holding intends to issue new shares to existing shareholders of Hongtuo Industrial (including Weiqiao Aluminum) to purchase their target shares, including an agreement signed by Weiqiao Aluminum and Shandong Hontron Aluminum Industry Holding on December 20, 2024, and the proposal of this transaction approved by the board of directors of Shandong Hontron Aluminum Industry Holding on January 6, 2025. On May 22, 2025, Shandong Hontron Aluminum Industry Holding and existing shareholders of Hongtuo Industrial (including Weiqiao Aluminum) signed a supplemental agreement for this transaction. According to the transaction documents, the sellers (Weiqiao Aluminum, Jiahui Investment, Eastern Asset Management, CITIC FAMC, Juxin Tian'ang, Ningbo Xin Aluminum, Jinan Hongtai, Junyue Investment, and Tiancheng Zinc Cheng) agreed to transfer their total 100% stake in Hongtuo Industrial to Shandong Hontron Aluminum Industry Holding. After this transaction is completed, the Company's indirect shareholding in Shandong Hontron Aluminum Industry Holding will increase from approximately 22.98% to approximately 88.99%, while the Company's indirect shareholding in Hongtuo Industrial will decrease from approximately 95.295% to approximately 88.99%. Shandong Hontron Aluminum Industry Holding and Hongtuo Industrial (through Shandong Hontron Aluminum Industry Holding) will continue to operate as subsidiaries of the Group. This transaction 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 transaction will help (including but not limited to) improve the asset quality of Shandong Hontron Aluminum Industry Holding, significantly improve its financial position and profitability; it will also help to transform Shandong Hontron Aluminum Industry Holding into a leading publicly traded company in the aluminum industry, enhance overall value, and maximize shareholder interests.