On January 25, 2026, Yong Jie New Material disclosed a major asset restructuring plan, proposing to acquire 100% equity in Arconic Qinhuangdao and 95% equity in Arconic Kunshan held by Arconic (China) through a cash payment. This acquisition will not only increase Yong Jie New Material's production capacity from 485,000 tons to 735,000 tons but also accelerate its strategic transformation towards the high-end aluminum market by integrating core technologies from the Alcoa system.
The 1.2 billion yuan cash acquisition is driven by both capacity expansion and a technological leap. According to the restructuring plan, Yong Jie New Material will spend the equivalent of $90.9 million to acquire the 95% stake in Arconic Kunshan and the equivalent of $88.9 million for the 100% stake in Arconic Qinhuangdao. On January 23, the People's Bank of China authorized the China Foreign Exchange Trade System to announce that the central parity rate of the RMB in the interbank foreign exchange market was 6.9929 yuan per US dollar. Based on this rate, the total transaction value for the equity transfer exceeds 1.2 billion yuan.
The predecessor companies of the target entities were both core manufacturing bases of Alcoa China. Following the spin-off of Alcoa in 2016, the two plants were incorporated into the Arconic system. Among them, the Arconic Qinhuangdao plant primarily produces aluminum can body stock, materials for lithium batteries, auto body sheet, and other aluminum sheets for commercial transportation and industrial use. Its net profit for 2025 was 8.3678 million yuan, a significant improvement from a loss of 94.3487 million yuan in 2024. The Kunshan plant, meanwhile, specializes in high-end thermal management brazing materials, with net profit remaining stable at over 87 million yuan from 2024 to 2025.
Despite the broad strategic prospects, this acquisition carries underlying concerns. Firstly, the transaction lacks a performance compensation clause, and the losses at the Qinhuangdao plant in 2024 were mainly attributed to fees paid to the group and insufficient capacity utilization due to business restrictions. If the cost allocation mechanism is not optimized post-integration, the risk of losses may persist. Secondly, aluminum ingot costs account for over 70% of the target companies' raw material costs. Although a "aluminum ingot price + processing fee" pricing model is used, there is a timing difference between the reference aluminum prices for procurement and sales; if aluminum prices fluctuate, inventory devaluation losses could erode profits.
Furthermore, over 40% of the Kunshan plant's revenue relies on exports, meaning that geopolitical conflicts or escalating trade barriers could impact its overseas business.
In this dual game of capacity and technology, whether Yong Jie New Material can convert its 1.2 billion yuan cash outlay into a long-term competitive advantage remains to be seen over time. However, it is foreseeable that the competitive landscape of China's high-end aluminum market is quietly changing because of this acquisition.