Dividend Restart After 12 Years! Hongqiao Holdings Proposes Dividend Exceeding 3 Billion, "Snake Swallowing Elephant" Reorganization Financial Results Released

Source: Taishan Finance

Taishan Finance Reporter Cao Xinxin

Shandong Hongqiao Aluminum Holding Co., Ltd. (referred to as “Hongqiao Holding,” 002379.SZ) recently announced its 2025 annual report and also disclosed its annual profit distribution plan. After successfully completing a major asset restructuring of Shandong Hongtuo Industrial Co., Ltd., the company plans to implement a combined special dividend and annual profit distribution scheme, distributing approximately 3.258 billion yuan in cash dividends to reward shareholders and convey confidence in future development.

According to the annual report, Hongqiao Holding has decided to implement this restructuring-related special dividend and the 2025 profit distribution plan: based on the company’s current total share capital of 13,031,118,202 shares, it will pay a cash dividend of 2.50 yuan (tax included) for every 10 shares, totaling approximately 3.258 billion yuan in cash dividends. No bonus shares will be issued, and there will be no capital reserve transfer to increase share capital. Remaining undistributed profits will be carried forward to the next period.

Public information shows that Hongqiao Holding was established in 2000, originally as Shandong Lufeng Aluminum Foil Industry Co., Ltd. In 2007, the company was renamed Lufeng Environmental Protection Technology Co., Ltd. (Lufeng Environmental). In 2013, Lufeng Environmental implemented a dividend plan of 10-for-10 share conversion and a cash dividend of 0.1 yuan (tax included).

Four years later, Shandong Hongqiao acquired 28.18% of Lufeng Environmental’s shares held by its former controlling shareholder, Yu Rongqiang, for 1.995 billion yuan, becoming the company’s controlling shareholder. In June of the same year, Lufeng Environmental was renamed “Hongchuang Holding.” Reviewing annual reports over the years, from 2013 to 2024, the company has not implemented any dividends.

At the end of 2024, Hongqiao Holding announced plans to acquire 100% of Hongtuo Industrial, held by Shandong Weiqiao Aluminum & Electric, and other transaction parties, through issuing shares, with a final transaction value exceeding 63.5 billion yuan.

Following this transaction, the company transformed from a single aluminum deep-processing enterprise into an industry giant covering the entire industry chain of alumina, electrolytic aluminum, and aluminum deep processing. On December 31, 2025, Hongqiao Holding completed the major asset restructuring, with asset delivery and change of ownership registration finalized. Shandong Hongtuo Industrial Co., Ltd. (referred to as “Hongtuo Industrial”) was officially included in the consolidated financial statements. In just one year, Hongqiao Holding successfully completed the major asset restructuring, marking a milestone for private enterprises returning to the A-share market.

After the restructuring, Hongqiao Holding recently disclosed its performance. During the reporting period, Hongqiao Holding achieved a total operating revenue of 156.721 billion yuan, up 4.25% year-on-year, and a net profit attributable to shareholders of listed companies of 17.864 billion yuan, up 3.69% year-on-year. In the aluminum alloy ingots and recycled aluminum products, Hongqiao Holding’s revenue in 2025 increased by 47.86% and 51.36%, respectively.

Due to accounting treatment rules, this acquisition is classified as a business combination under common control. The net profit or loss of the target company from the beginning of the period to the date of consolidation needs to be included in non-recurring gains and losses and cannot be counted toward non-exceptional net profit. Affected by this, Hongqiao Holding’s net profit attributable to parent after deducting non-recurring gains and losses in 2025 was a loss of 369 million yuan.

With the advancement of the restructuring and the increasing expectation of industry chain integration, Hongqiao Holding has performed strongly in the secondary market. Since 2024, its stock price has surged, reaching a peak of 33.44 yuan on March 13, 2026, an increase of about 640% from the low of 4.52 yuan in September 2024. However, recently, Hongqiao Holding’s stock price has begun to decline. On March 23, the first trading day after the annual report release, the stock closed at 24.95 yuan, down 7.59%, with a total market value of 325.1 billion yuan.

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