Jiaozuo Wanfang Ends Plan to Buy 99.4375% of Cayman Aluminum

Jiaozuo Wanfang (000612. SZ) announced after market close on September 14, 2026 that its board had approved a resolution to terminate the transaction to acquire 99.4375% of Cayman Aluminum (Sanmenxia) Co. , Ltd. through the issuance of shares, and to withdraw the application documents. The deal had originally been intended to issue shares to 19 counterparties, including Hangzhou Jinjiang Group Co. , to acquire their combined 99.4375% stake in Sanmenxia Aluminum. Had the acquisition been completed, the company's aluminum business would have extended upstream, forming a complete aluminum-based materials industrial chain spanning alumina, electrolytic aluminum and aluminum processing.

The announcement said the termination was because the current market environment has changed considerably from the early planning stage of the transaction. After prudent consideration, the company and the main counterparty unanimously decided to terminate the share-based asset purchase and related-party transaction. Jiaozuo Wanfang has signed a termination agreement with the main counterparty, and no circumstances require it to bear liability for breach of contract. The company pledged not to plan any major asset restructuring for at least one month from the date of the termination announcement.

Reviewing the transaction's progress, Jiaozuo Wanfang first disclosed a trading suspension announcement for the matter on March 3, 2025. On August 22, 2025, the board approved the draft transaction report. On October 22, 2025, the company received an inquiry letter from the Shenzhen Stock Exchange and completed its reply on December 13, 2025. On January 26, 2026, the board approved an additional-period audit report and a revised draft. In early April 2026, the company disclosed the transaction report (draft) (revised version) and other related documents. The revised version showed an issue price of RMB 5.52 per share for the share-based asset purchase.

On August 20, 2026, the Jiaozuo Wanfang board approved a proposal to extend the validity period of the shareholders' meeting resolution and the authorization period. On September 7, 2026, an extraordinary shareholders' meeting approved the extension proposal. On September 14, 2026, the company announced the termination of the transaction. In 2026, the company's share price did not fall below RMB 9 per share. As of the close on September 14, 2026, the company's share price was 1.9 times RMB 5.52 per share.

Jiaozuo Wanfang's main business is aluminum smelting and rolling processing, supported by thermal power generation. Its main products include molten aluminum, aluminum ingots and aluminum alloy products. In 2025, the company recorded operating revenue of RMB 6.495 billion and net profit attributable to shareholders of RMB 1.071 billion. In the first half of 2026, it recorded operating revenue of RMB 4.148 billion and net profit attributable to shareholders of RMB 1.230 billion, up 129.58% year on year, with half-year net profit exceeding the full-year level for 2025.

The company disclosed on the same day that it will hold an investor briefing on the termination of the share-based asset purchase and related-party transaction from 4 p. m. to 5 p. on Monday, September 21, 2026. Attendees will include the company's chairman, board secretary, representatives of the counterparty, key directors and senior executives of the restructuring target, and the lead sponsor of the independent financial adviser.