Capital structure revised by Aluminium Corporation of China for Chinalco-led joint venture

Aluminum Corporation of China Limited has provided an update on the formation of its previously announced joint venture with Chinalco, Yunnan Copper, Chihong Zinc & Germanium and Chinalco Capital. The new entity, Chinalco Qianxing (Chengdu) Technology Co., Ltd., has now been formally incorporated in the People’s Republic of China, highlighting a key step forward in the project’s establishment.

According to the company, all participating partners other than Aluminum Corporation of China have already fulfilled their respective paid-in capital commitments. The company itself has so far injected RMB 100 million ( USD 14 million) towards its agreed total contribution of RMB 300 million (USD 42 million). In a subsequent development, the joint venture’s shareholders unanimously approved revisions to the articles of association, resulting in a change to the structure of Aluminum Corporation of China’s capital contribution.

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The revision now replaces the previous plan by making the company meet its obligation entirely through cash instead of replacing the cash component by high-purity gallium production.  Importantly, this adjustment does not affect the overall registered capital of the joint venture, the equity ownership proportions among shareholders, or the previously agreed capital contribution schedule. The change is seen as enhancing funding flexibility and simplifying the venture’s capital structure, while leaving dilution and control considerations unchanged for all stakeholders.

In the equity market, the latest analyst coverage on the company’s shares (stock code 2600) maintains a Buy recommendation, with a target price of HKD12.50 (USD 1.6).

Aluminum Corporation of China Limited is one of China’s leading producers of non-ferrous metals, with aluminium and related materials at the core of its operations. Chinalco, with the support of its parent company and the affiliates Yunnan Copper and Chihong Zinc, and Germanium, continues to expand its footprint in metals and technology-oriented segments that deliver  high business value within China’s industrial and materials landscape.

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