Chinalco International transfers 60% Jiuye Sanwei stake to Shenyang Institute

Chinalco International (02068) is reorganising its subsidiary structure through the transfer of a 60 per cent equity interest in Jiuye Sanwei to Shenyang Institute for RMB 100.08 million (USD 14.99 million), as the company seeks to strengthen synergies across its concrete mixing equipment and energy-saving businesses.

Under an equity transfer agreement signed on November 6, 2026, Jiuye, a non-wholly owned subsidiary of Chinalco International, agreed to transfer its 60 per cent stake in Jiuye Sanwei to Shenyang Institute, another non-wholly owned subsidiary of the group.

Following completion of the transaction, Chinalco International's effective equity interest in Jiuye Sanwei will decrease by 7.76 per cent. However, Jiuye Sanwei will continue to operate as an indirect non-wholly owned subsidiary of the group.

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Internal restructuring aims to strengthen equipment business

Chinalco International said the transaction forms part of an internal restructuring initiative intended to integrate the core resources of Jiuye and Shenyang Institute through capital reorganisation.

The move is expected to support the expansion and consolidation of the group's concrete mixing equipment business while establishing a more integrated operating structure.

Through the restructuring, Jiuye Sanwei is expected to draw on the technological capabilities of Shenyang Institute and the policy support associated with China's science and technology reform initiatives. The company aims to accelerate its transformation and upgrading while strengthening its competitiveness in the equipment market.

Shenyang Institute, meanwhile, is expected to address existing gaps in the industrialisation of its energy-saving businesses through the integration. The group intends to develop a complementary business structure driven by environmental protection and energy-saving equipment, combining the capabilities of both subsidiaries.

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Chinalco International considers transaction terms fair and reasonable

The company's board, including its independent non-executive directors, considers the equity transfer beneficial and necessary for the group's business operations, despite the transaction falling outside its ordinary and usual course of business.

According to the announcement, the consideration was negotiated with reference to the assessed value of the equity interest being transferred. The agreement was entered into on normal commercial terms, which the directors consider fair and reasonable and in the overall interests of the company and its shareholders.

The transaction represents an internal reorganisation of Chinalco International's subsidiary holdings rather than an exit from Jiuye Sanwei. By bringing the businesses closer together, the group aims to consolidate its concrete mixing equipment operations while strengthening its capabilities in energy-saving and environmental protection equipment.

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