Barely a year after the "Shandong Richest Family" moved its 63.5 billion yuan aluminum assets into an A-share listing, the "Weiqiao Group" is now preparing to integrate its power generation business into the same platform.
On the evening of September 11, Shandong Hongqiao Aluminum Industry Holding Company Limited (002379.SZ), the A-share vehicle of the Weiqiao system, announced plans for its wholly-owned subsidiary Yunnan Hongqiao New Materials to acquire 100% of Yunnan Hongqiao New Energy and Yunnan Weiqiao New-Tech Industrial Park Development Co., Ltd. (referred to as "Yunnan Xinchuang") via cash transactions priced at 1.81 billion yuan and 240 million yuan respectively, totaling 2.05 billion yuan.
The sellers of both entities also belong to the Weiqiao system: Shandong Hongqiao, the shareholder of Yunnan Hongqiao New Energy, serves as the listed company's indirect controlling shareholder, while Binzhou Gongjian, the shareholder of Yunnan Xinchuang, is a wholly-owned subsidiary of Weiqiao Venture Group controlled by the actual controllers. Consequently, this constitutes a related-party transaction.
The three companies involved in this deal—Hongqiao Holdings, Yunnan Hongqiao New Energy, and Yunnan Xinchuang—are all ultimately controlled by the siblings Zhang Bo, Zhang Hongxia, and Zhang Yanhong. According to the "2025 Shandong Wealth Creators List" published by Shandong Commercial Daily, the trio's combined wealth amounts to 194.968 billion yuan, ranking them as the wealthiest family in Shandong.
Notably, both target companies are currently loss-making. In 2025, the two firms collectively generated revenue of 184 million yuan but recorded a net loss of approximately 209 million yuan. During the first five months of 2026, their combined revenue reached about 237 million yuan, with a narrowed net loss of 28.8744 million yuan.
Why would Hongqiao Holdings spend 2.05 billion yuan to acquire two loss-making entities? The company stated in its announcement that electricity costs account for over 40% of aluminum smelting production expenses. For an aluminum giant earning net profits of 15.6 billion yuan in just one half-year, securing stable and affordable power isn't merely an environmental issue—it directly impacts profitability.
Where to Begin the Capital Restructuring
This acquisition represents the latest chess move by the Weiqiao system on the A-share board: first overhauling the listing platform with 63.5 billion yuan in assets, next unveiling a 12 billion yuan private placement, and now absorbing green power assets into the fold. As of the close on September 14, Hongqiao Holdings traded at 17.58 yuan per share, giving it a total market capitalization of roughly 229.1 billion yuan.
The primary appeal of these two target companies lies in their photovoltaic power stations. According to the acquisition announcement, Yunnan Hongqiao New Energy, Yunnan Xinchuang, and their subsidiaries primarily operate wind and solar power generation businesses in Yunnan province. Their grid-connected solar projects boast a combined installed capacity of 2527.82MW, distributed across regions such as Honghe Prefecture and Wenshan Prefecture.
However, these green energy assets have yet to reach stable profitability. In 2025, Yunnan Hongqiao New Energy reported revenue of 169 million yuan with a net loss of 195 million yuan, while Yunnan Xinchuang posted revenue of 15.5272 million yuan and a net loss of 13.3333 million yuan. By the first five months of 2026, Yunnan Hongqiao New Energy generated 222 million yuan in revenue with a reduced net loss of 25.6398 million yuan, and Yunnan Xinchuang achieved 15.5773 million yuan in revenue with a net loss of 3.2346 million yuan.
The combined revenue of both companies has already surpassed their full-year 2025 figures, while total losses have narrowed from 209 million yuan to 28.8744 million yuan, indicating that some projects are gradually becoming operational. Hongqiao Holdings explained that most photovoltaic projects were connected to the grid in 2025 and remain in the early stage of grid integration. Due to short operational periods, substantial construction investments, and high depreciation and amortization bases, temporary losses are expected. As projects achieve full production capacity and consumption capabilities improve, the company anticipates further loss reduction toward breakeven.
From an asset structure perspective, these are typical capital-intensive new energy enterprises. As of the end of May 2026, the two companies held combined total assets of approximately 9.67 billion yuan, total liabilities of about 7.934 billion yuan, and net assets of roughly 1.736 billion yuan, resulting in a combined debt-to-asset ratio of approximately 82.05%.
The purchase price of 2.05 billion yuan represents a premium of about 314 million yuan over the combined book value of net assets, translating to an approximate 18.1% premium. The transaction design is notably straightforward: Hongqiao Holdings will not issue new shares; instead, Yunnan Hongqiao New Materials will use its own funds to settle the entire amount in cash. Both equity purchase agreements stipulate full payment within 30 days of signing.
This 2.05 billion yuan outlay equals approximately 17.4% of Hongqiao Holdings' cash holdings as of the end of June 2026. According to the company's interim report, it held 11.812 billion yuan in monetary funds, with roughly 2 billion yuan restricted as margins or deposits.
Given that the counterparties are related entities, the 2.05 billion yuan in cash will flow from the A-share listed company to companies controlled by its indirect controlling shareholder and actual controllers. In return, the listed company gains 2527.82MW of grid-connected solar projects and their future earnings, while also assuming the targets' assets, liabilities, depreciation, and operational risks. For the related sellers, this transaction converts heavy assets into cash.
The related-party transaction has been approved by Hongqiao Holdings' board of directors, with affiliated directors abstaining from voting, but it does not require shareholder approval nor does it constitute a major asset restructuring. Independent directors have determined that the pricing is fair and does not harm the interests of the company or its minority shareholders.
Whether the 2.05 billion yuan price tag proves reasonable ultimately depends on when these two companies return to profitability and how much these green energy assets can reduce Hongqiao Holdings' electricity costs.
The Expanding A-Share Platform of the Weiqiao System
Hongqiao Holdings, now valued at over 200 billion yuan, was just a modest aluminum sheet and strip processor a few years ago. Formerly known as Lubao Co., Ltd. and later renamed Hongchuang Holdings, the company had long focused on producing and selling aluminum sheets, strips, and foils.
Despite its ties to the Weiqiao system, the listed company's original asset scale and profitability did not match the Zhang family's vast aluminum empire. The turning point came in 2025. In May of that year, Hongchuang Holdings disclosed a major asset restructuring plan to acquire 100% of Shandong Hongtuo Industrial through a share issuance, with a transaction value reaching 63.518 billion yuan.
Hongtuo Industrial and its subsidiaries cover alumina, electrolytic aluminum, and aluminum deep processing—the core assets of the Weiqiao system's aluminum business. From a scale perspective, this was a classic "snake swallowing elephant" scenario. The restructuring report showed that Hongtuo Industrial generated revenue of 149.289 billion yuan and net profits of 18.144 billion yuan in 2024, while the pre-restructuring Hongchuang Holdings recorded only 3.486 billion yuan in revenue and a net loss attributable to shareholders of 68.9818 million yuan.
The target company's revenue was roughly 43 times that of the listed entity. Upon completion of the 63.518 billion yuan transaction, the listed company transitioned from an aluminum processor to a leading enterprise with core production capacity across the aluminum value chain. Rather than a cash purchase, the transaction involved the listed company issuing approximately 11.895 billion shares at 5.34 yuan per share to Weiqiao Aluminum Power and several financial investors, exchanging new shares for 100% of Hongtuo Industrial.
Post-transaction, Hongchuang Holdings' total share capital surged from approximately 1.136 billion shares to 13.031 billion shares—a tenfold increase. Its controlling shareholder changed from Shandong Hongqiao to Weiqiao Aluminum Power, while the three siblings, Zhang Bo, Zhang Hongxia, and Zhang Yanhong, remained joint actual controllers.
From a capital operations perspective, the Weiqiao system converted 63.5 billion yuan worth of aluminum assets into listed company shares, transforming the previously limited A-share platform into a capital operations vehicle for the group's aluminum assets. On December 31, 2025, Hongtuo Industrial completed asset delivery and was consolidated into the listed company's financial statements. In January 2026, Hongchuang Holdings was officially renamed Hongqiao Holdings.
Following the asset injection, the listed company's financial reports rapidly expanded. In the first half of 2026, Hongqiao Holdings achieved revenue of 86.504 billion yuan, up 11.95% year-on-year; net profit attributable to shareholders reached 15.645 billion yuan, up 77.02%; and operating cash flow hit 18.701 billion yuan, up 52.72%. As of the end of June 2026, total assets stood at 104.89 billion yuan, with net assets attributable to shareholders at 57.889 billion yuan. Based on interim data, the company's debt-to-asset ratio was approximately 44.82%.
After completing the 63.5 billion yuan restructuring, the Weiqiao system didn't pause its financing efforts. In late July 2026, Hongqiao Holdings unveiled a private placement plan to issue shares to no more than 35 specific investors, raising up to 12 billion yuan. According to the feasibility analysis report, 5.65 billion yuan would fund 11 wind power projects, 2.25 billion yuan for six solar projects, 2.3 billion yuan for two aluminum deep-processing projects, and 1.8 billion yuan for repaying bank loans and replenishing working capital. The total project investment is approximately 14.064 billion yuan, with the shortfall covered by the company's own funds or other financing methods.
Connecting these transactions reveals a coherent strategy: the Weiqiao system first injected mature alumina, electrolytic aluminum, and aluminum processing assets into the A-share platform to address inadequate scale; then pursued private placement financing for new energy and deep-processing projects; and simultaneously used cash to acquire the group's existing solar assets, resolving potential horizontal competition for the listed company's forthcoming wind and solar investments.
The 63.5 billion yuan asset restructuring addressed "what the listed company owns," the 12 billion yuan private placement answered "where future project funding comes from," and the 2.05 billion yuan related acquisition clarified "who holds the green energy assets." Over the past year, the Weiqiao system has been redrawing boundaries between industrial assets and the listed platform.
Succession of the "Aluminum King" Reshapes the Weiqiao Empire
Behind Hongqiao Holdings' series of capital maneuvers lies an industrial empire built over decades by the Zhang Shiping family. Zhang Shiping was born in 1946 in Zouping, Shandong, starting his career in the grain and cotton system. In 1981, he took over the loss-making Zouping County Fifth Cotton and Oil Mill. From there, the enterprise expanded from cotton processing to spinning, weaving, printing, dyeing, and home textiles, entering the aluminum and power industries around 1998.
Through large-scale production, vertical integration, and rigorous cost control, Weiqiao Group grew into a globally significant textile and aluminum enterprise. Zhang Shiping was dubbed the "Asian Cotton King" and "World Aluminum King," repeatedly ranking as "Shandong's Richest Man." He harbored no aversion to capital markets—in a 2016 interview, he listed capital operations among Weiqiao Group's six major strategies, acknowledging the vital role markets played in corporate growth.
In terms of industrial management, Zhang Shiping delegated authority to his children early on. By then, his daughter Zhang Hongxia already oversaw Weiqiao Textile, while his son Zhang Bo managed China Hongqiao's operations. Zhang Shiping noted that he focused primarily on strategic planning and final decisions for new projects, entrusting day-to-day operations to his offspring.
In May 2019, Zhang Shiping passed away at age 73, ushering the Weiqiao system into a phase of joint second-generation succession. In 2022, Zhang Bo, Zhang Hongxia, and Zhang Yanhong inherited all equity in the core holding platform Shiping Global Holdings, with stakes of 40%, 30%, and 30% respectively, signing a concerted action agreement that made them joint actual controllers of Hongchuang Holdings and other enterprises.
The siblings' industrial division of labor follows their father's original arrangements: Zhang Bo primarily oversees the aluminum sector, serving as Chairman of Weiqiao Venture Group, legal representative and Chairman of Hongqiao Holdings, and Chairman of the board of China Hongqiao; Zhang Hongxia has long managed the textile segment as General Manager of Weiqiao Venture Group; and Zhang Yanhong participates alongside her siblings in the family holding platform and group control.
Unlike his father's humble origins at an oil and cotton mill, Zhang Bo possesses a composite educational background in finance, software engineering, and business administration. His public resume shows he graduated in 1996 from Shandong Radio and Television University with a degree in accounting, earned a master's degree in software engineering from Wuhan University in 2005, and obtained a Doctor of Business Administration from Singapore Management University in 2023.
Zhang Bo became Deputy General Manager of Weiqiao Venture Group in 1998, assumed the role of Group Chairman in 2018, and took over as Chairman of China Hongqiao's board in 2019. Rather than abruptly "parachuting in" after his father's death, he underwent more than two decades of internal succession spanning both textile and aluminum sectors.
According to the 2025 Hurun Rich List, Zhang Bo, Zhang Hongxia, and Zhang Yanhong boast respective fortunes of 78 billion yuan, 60 billion yuan, and 58.5 billion yuan, combining for 196.5 billion yuan. By that measure, the three siblings have once again become one of Shandong's wealthiest entrepreneurial families.
In capital markets, the Weiqiao system once simultaneously held two Hong Kong-listed companies—China Hongqiao and Weiqiao Textile—alongside the Hongchuang Holdings A-share platform. China Hongqiao (1378.HK) served as the core Hong Kong listing for the aluminum sector; Weiqiao Textile was listed on the Hong Kong Stock Exchange before being delisted in March 2024 following absorption by Weiqiao Textile Technology; Hongchuang Holdings, after completing the 63.5 billion yuan restructuring, was renamed Hongqiao Holdings and became a crucial A-share financing and industrial integration platform for the family.
In 2026, Weiqiao Venture Group entered the Fortune Global 500 for the 15th consecutive year, ranking 156th. Today, the three siblings jointly control not just a single listed company but an entire industrial system spanning textiles, aluminum, energy, mining, and deep processing.
The industrial logic behind this green energy acquisition isn't difficult to grasp. Hongqiao Holdings already operates approximately 2.2802 million tons of electrolytic aluminum production capacity in Yunnan, where the target companies' solar projects are primarily located. The company envisions these projects forming a "solar-new energy plus electrolytic aluminum load" source-load integration system, enhancing the continuity and stability of power supply.
Electrolytic aluminum is quintessentially an "electricity-driven business." When power costs exceed 40% of production expenses, green energy becomes more than a new venture—it's an upstream component of the aluminum value chain. Acquiring the power stations effectively extends the cost chain further upstream.
From the 63.5 billion yuan asset injection to the 12 billion yuan private placement and now the 2.05 billion yuan related acquisition, the Zhang siblings are reconstructing the Weiqiao system's capital landscape. What founder Zhang Shiping left behind was an industrial empire famed for low costs and massive scale. As the second generation consolidates more assets into the listed entity, the critical question remains: beyond larger financial statements, can these moves consistently deliver shareholder value? What are your thoughts on Hongqiao Holdings' 2.05 billion yuan acquisition of two loss-making green energy companies? Feel free to share your comments below.