New Stock News | Innovation Industrial Holds Hearing at Hong Kong Stock Exchange, Strong Growth in Aluminum Electrolysis Performance.

According to the disclosure from the Hong Kong Stock Exchange on November 9, Innovation Industrial Group Limited (hereinafter referred to as "Innovation Industrial") has conducted a listing hearing on the main board of the Hong Kong Stock Exchange, with CICC and Huatai International as joint sponsors. According to CRU's report, based on production in 2024, Innovation Industrial is the 12th largest aluminum electrolysis producer in China. The prospectus shows that Innovation Industrial focuses on alumina refining and electrolytic aluminum smelting in the upstream of the aluminum industry chain. The aluminum industry chain mainly includes upstream aluminum production and downstream aluminum alloy processing. Upstream aluminum production mainly includes three stages: bauxite mining, alumina refining, and electrolytic aluminum smelting. Innovation Industrial has been committed to improving its capabilities in the electrolytic aluminum industry chain and has developed into an aluminum industry group with businesses covering energy, alumina refining, and electrolytic aluminum smelting. As of December 31, 2024, the company has achieved a high degree of self-sufficiency in alumina and power supply, which is strategically and economically significant for producing electrolytic aluminum and maintaining strong operational performance better than some peers. In terms of production capacity, in 2022, 2023, 2024, and for the five months ending on May 31, 2025, Innovation Industrial's alumina production from alumina refining was approximately 706.2 thousand tons, 1546.1 thousand tons, 1539.9 thousand tons, 665.3 thousand tons, and 664.5 thousand tons respectively. In 2024, the self-sufficiency rate of alumina reached around 84%. As of November 6, 2025 ("Final feasible date"), Innovation Industrial has a designed production capacity of 788.1 thousand tons/year for electrolytic aluminum and 1200 thousand tons/year for alumina, and the related production lines have been completed and put into operation. As of the same date, the company has been approved for an annual production capacity of 2980 thousand tons of aluminum hydroxide, with 1480 thousand tons of related production lines in operation, and the additional 1500 thousand tons of related production lines starting trial production in December 2024 and fully operational in April 2025. Innovation Industrial has obtained regulatory approval to produce 6000 thousand tons of alumina from baking aluminum hydroxide, with 2000 thousand tons of related production lines completed and expected to start trial production in November 2025; the remaining 4000 thousand tons of approved capacity have no current construction plans and will serve as a strategic reserve for the company's future alumina capacity expansion. Assuming all of the above production capacities operate as planned and aluminum hydroxide is produced by baking as planned, the company expects its total annual alumina production capacity to be at least 3000 thousand tons. In terms of the industry, according to CRU's report, global consumption of electrolytic aluminum is expected to grow at a compound annual growth rate of 1.6% from 2025 to 2028. China's annual demand gap for electrolytic aluminum will exceed 1 million tons and persist until 2034, mainly due to the Ministry of Industry's regulation stipulating an annual production capacity cap for electrolytic aluminum of around 45 million tons. According to CRU's report, based on production in 2024, Innovation Industrial's electrolytic aluminum smelting plant in Holingol City, Inner Mongolia, is the fourth largest electrolytic aluminum production base in North China. According to the same source, Innovation Industrial's ability to manage cash costs per ton of aluminum places it in the top 5% of all electrolytic aluminum smelting companies in China and competitive globally, ranking in the top 30% in 2024 (comparison of the company's cash costs in 2024 with the industry average cash costs in China and globally). Financially, in the fiscal years 2022, 2023, 2024, and for the five months ending on May 31, 2025, Innovation Industrial recorded revenues of RMB 13.49 billion, RMB 13.815 billion, RMB 15.163 billion, and RMB 7.214 billion respectively; during the same periods, the company achieved profits of approximately RMB 0.913 billion, RMB 1.081 billion, RMB 2.63 billion, and RMB 0.856 billion.