When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

On December 23, the Financial Associated Press reported (Reporter Liang Xiangcai) that WEIQIAO Group is staging an internal "snake swallowing elephant" and plans to incorporate relevant Aluminum Assets with a net asset of over 47 billion yuan from CHINAHONGQIAO (01378.HK) into Shandong Hontron Aluminum Industry Holding (002379.SZ), which has net assets of less than 2 billion.

Today, Shandong Hontron Aluminum Industry Holding disclosed a suspension announcement regarding the planning of issuing shares to purchase assets and related transactions. The company is planning to issue shares to purchase 100% equity of ShanDong WEIQIAO Aluminum Electric Co., Ltd. (hereinafter referred to as WEIQIAO Aluminum Electric) and other transaction counterparts' holdings in ShanDong Hongtuo Industrial Co., Ltd. (hereinafter referred to as Hongtuo Industrial).

The announcement shows that WEIQIAO Aluminum Electric is a wholly-owned subsidiary of the company's controlling shareholder ShanDong CHINAHONGQIAO New Materials Co., Ltd. (hereinafter referred to as ShanDong CHINAHONGQIAO), directly holding approximately 95.295% equity in Hongtuo Industrial. This transaction is expected to constitute a significant asset reorganization but does not constitute a reorganization listing. The suspension period is on December 23, 2024, and the transaction plan is expected to be disclosed within no more than 10 trading days.

In addition, today CHINAHONGQIAO also mentioned in the relevant announcement that on December 20, 2024, the company’s indirectly affiliated company WEIQIAO Aluminum Electric signed a "Share Issuance Agreement for Asset Purchase Intent" with the company's indirectly affiliated company Shandong Hontron Aluminum Industry Holding, planning to acquire all the equity of Hongtuo Industrial, and issue new shares to existing shareholders of Hongtuo Industrial, including WEIQIAO Aluminum Electric, as consideration for the acquisition.

CHINAHONGQIAO stated that after this transaction, the company's shareholding in Shandong Hontron Aluminum Industry Holding will correspondingly increase, and Hongtuo Industrial will continue to be a subsidiary of this group (through Shandong Hontron Aluminum Industry Holding). This transaction will help enhance the group's asset securitization level and promote the group’s long-term development.

Furthermore, the transaction target Hongtuo Industrial currently owns all Aluminum Alloy product lines, Alumina product lines, and some Aluminum Alloy processing product lines of CHINAHONGQIAO and its subsidiaries located in mainland China. As of November 30, 2024, Hongtuo Industrial's net assets are approximately 47.214 billion yuan (unaudited).

Looking at Shandong Hontron Aluminum Industry Holding, as of the end of the third quarter of 2024, the total Assets amount to 3.338 billion yuan, with total liabilities of 1.36 billion yuan. According to calculations by Financial Association reporters, the company's net Assets during the same period amount to 1.978 billion yuan.

Shandong Hontron Aluminum Industry Holding has also issued relevant risk warnings: Currently, this Trade is still in the planning stage, and the parties to the Trade have not yet signed formal Trade documents. The specific Trade plan is still under discussion and verification, and there remains uncertainty.

It is worth noting that in the 2024 list of the 500 largest private enterprises in China selected by the All-China Federation of Industry and Commerce, WEIQIAO TEXTILE ranked first in ShanDong with a revenue of 520.214 billion yuan, placing 9th nationwide. In March of this year, after completing its privatization and (Delisted) on the Hong Kong stock market, WEIQIAO Group currently has two listed companies, including Shandong Hontron Aluminum Industry Holding and CHINAHONGQIAO.

It is worth mentioning that Shandong Hontron Aluminum Industry Holding stated in a related announcement released on July 8, 2022, that its actual controller, who is indirectly controlled by ShanDong HonQiao, has a partial overlap or similarity of products with the listed company, and has committed to using various methods such as equity acquisition, asset restructuring, business adjustment, and entrusted management to carefully advance the resolution of related issues of similar businesses within 36 months from the date of this commitment letter.