[Changjiang Electric New] Hailiang Co., Ltd.: Increases Stake in Gansu Hailiang to 67%, Copper Foil/US/AI Copper-Based Businesses All Progressing

English summary

1. The company announced plans to acquire 18.6916% equity of Gansu Hailiang held by controlling shareholder Hailiang Group in cash for RMB 972M. After the transaction, the company's stake in Gansu Hailiang will increase from 48.60% to 67.29%. In November 2023, Gansu Hailiang introduced strategic investors through a capital increase and share expansion. This reverse acquisition marks the company's dual strengthening of control and consolidation rights over the copper foil business. On the operational side, Gansu Hailiang achieved net profit attributable to parent of RMB 256M from January to May, +510% YoY; shipments were about 36,000 tons from January to May, with operating profit per ton above RMB 7,000, and profitability is expected to further improve in August. 2. The company is in an acceleration phase driven by multiple businesses. 1) Copper foil: Year-end capacity is expected to exceed 200,000 tons, with a sales target of about 110,000 tons. Relying on Lanzhou electricity price advantages, late-mover intelligent advantages, and product structure optimization, the company's monthly profitability exceeded RMB 6,000 in June. On AI: HVLP-1 and 2 have been sampled, and generation 3 and carrier are planned to be sampled in Q3.