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Chuangxin Industries IPO Gains Strong Investor Interest as Subscription Opens



HONG KONG, Nov 17, 2025 - (ACN Newswire) – As the public subscription for Chuangxin Industries Holdings Limited (“Chuangxin Industries”; Stock Code: 02788.HK) entered its second day, the market response has been overwhelmingly positive. The company officially launched its initial public offering on November 14, 2025, with 17 cornerstone investors’ participation—a move that further bolsters investor confidence. As a leading player in China’s upstream aluminum sector, the company is offering 500 million shares subject to the Over-allotment Option, within a price range of HK$10.18 – HK$10.99 per share, aiming to raise up to HK$5,495 million. The public subscription period will run until November 19, 2025, with an entry fee of approximately HK$5,550 for a board lot of 500 shares, ahead of its expected listing on the HKEX Main Board on November 24, 2025.

Chuangxin Industries specializes in alumina refining and aluminum smelting—two of the most value-added segments of the aluminum industry chain. With a proven track record of cost leadership, proactive green transition initiatives, and a highly integrated operational ecosystem, the company is strategically positioned to capitalize on growing global demand for aluminum—particularly low-carbon aluminum, which is increasingly favored in sectors such as electric vehicles, renewable energy infrastructure, and consumer electronics.

One of the standout features of Chuangxin Industries is its strategic presence in resource-rich regions such as Inner Mongolia and Shandong Province. The company’s aluminum smelter in Huolinguole ranked as the fourth-largest production base of electrolytic aluminum in 2024 in North China. This location offers the company a decisive advantage in power costs, supported by self-generation capabilities and abundant local energy resources. In 2024, the company’s coal-fired power cost stood at just RMB0.37 per kWh, notably below the national average of RMB0.43 per kWh. By May 2025, this figure had further dropped to RMB0.33 per kWh—a clear indicator of continuous operational optimization.

This low-cost energy structure has enabled Chuangxin Industries to achieve a cash cost of aluminum of approximately RMB15,112 per ton in 2024, significantly lower than the industry average of approximately RMB17,700 per ton in China. According to CRU, the company ranked among the top 5% of all aluminum smelting companies in China in terms of cost efficiency, reinforcing its competitive edge both domestically and globally.

Aligned with China’s national goals to peak carbon emissions by 2030 and achieve carbon neutrality by 2060, Chuangxin Industries is moving decisively toward green power adoption. The company is currently constructing wind and solar power plants with a total projected installed capacity of 1,750.0 MW. By the end of 2026, it aims to source over 50% of its energy from renewables—doubling the national mandate of 25%. This transition not only supports environmental targets but also drives down long-term operational expenses. Based on the estimates, the delivered cost of green power is expected to be as low as RMB0.10–0.18 per kWh, substantially below current coal-powered rates, thereby enhancing profitability and insulating the company from potential carbon price increases.

Another pillar of Chuangxin Industries’ competitive strength lies in its self-sufficient operational model. Electricity represents a major portion of production costs in aluminum smelting, and the company’s electricity self-sufficiency rate reached approximately 88% in 2024, far exceeding the industry average of around 57%. This high level of energy autonomy not only stabilizes production but also shields the company from grid price volatility. In addition, the company maintains a high rate of alumina self-sufficiency, with an annual designed production capacity of 788.1kt for electrolytic aluminum and 1,200.0 kt for alumina—ensuring a reliable and cost-effective supply of key raw materials.

Geographic advantages further amplify Chuangxin Industries’ market positioning. Its Inner Mongolia smelter is located within a 25 km radius of downstream customers boasting a combined production capacity of over 1.9 million tons—far exceeding its own annual output of 788.1 kt. This proximity not only reduces transportation costs but also enables the sale of liquid aluminum, which must be delivered within a narrow 50 km radius. Supported by its high rates of self-sufficiency in both electricity and alumina supply, Chuangxin Industries has established a synergistic, integrated ecosystem that ensures unique competitiveness across the electrolytic aluminum industry chain and shields the company from market volatility. 

Financially, Chuangxin Industries has demonstrated impressive growth and operational efficiency. Revenue increased from RMB13.8 billion in 2023 to RMB15.2 billion in 2024, and surged by 22.6% year-on-year to RMB7.2 billion in the first five months of 2025. Gross profit margin improved markedly from 16.9% in 2023 to 28.2% in 2024, reflecting both improved cost control and favorable industry dynamics. These results underscore the company’s ability to capitalize on market upcycles while maintaining structural cost advantages.

Looking ahead, Chuangxin Industries is not resting on its achievements. The company has unveiled plans to establish a 500 kt aluminum smelting facility in Yanbu, Saudi Arabia—a strategic move that will leverage the country’s low-cost natural gas resources and prime location near the Red Sea. This expansion will facilitate efficient export of aluminum products to markets in Europe and the United States via the Suez Canal.

The IPO of Chuangxin Industries arrives at a pivotal moment, with global aluminum demand being steadily driven by transitions in transportation, energy, and digital infrastructure. With its industry-leading cost structure, clear green transformation roadmap, and fully integrated value chain, Chuangxin Industries is not merely a commodity producer—it is a forward-looking industrial operator committed to sustainable and high-quality growth.

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Source: CHUANGXIN INDUSTRIES HOLDINGS LIMITED

Copyright 2025 ACN Newswire . All rights reserved.

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