Chalco and Subsidiary to Reduce Capital Contributions in Inner Mongolia Huayun Due to Excellent Performance

China Aluminum Corporation (Chalco) recently announced that its wholly-owned subsidiary, Baotou Aluminum Industry Co., Ltd., plans to reduce its capital contribution by RMB 500 million to its controlled subsidiary, Inner Mongolia Huayun New Materials Co., Ltd., in proportion to its shareholding. Meanwhile, another major shareholder of Inner Mongolia Huayun, Chalco Group, will also correspondingly reduce its capital contribution by RMB 500 million.

The primary reason for this capital reduction lies in Inner Mongolia Huayun's excellent performance over the years. With its stable operating results, continuously optimized financial indicators, and enhanced cash generation capabilities, the company has demonstrated robust growth. To further improve Inner Mongolia Huayun's capital structure, release surplus capital, and enhance capital utilization efficiency, Baotou Aluminum Industry and Chalco Group, after consensus, decided to jointly implement the capital reduction in accordance with their respective shareholdings.