Innovation Industrial Announces Interim Results for the First Half of 2026

Innovation Industrial Group Announces H1 2026 Results

- Significant profit surge highlights supply chain advantages
- Green energy transition and global layout drive long-term value growth

Financial Highlights:

- In H1 2026, the company recorded revenue of approximately RMB 11.533bn (+32.4% YoY).

- Net profit attributable to shareholders was approx. RMB 2.305bn (+166.1% YoY).

- EPS reached approx. RMB 1.11, up 91.4% from RMB 0.58 in the same period last year.

Innovation Industrial Group Co., Ltd. (the "Company", together with its subsidiaries, collectively the "Group", Stock Code: 02788.HK) released its interim results for the six months ended June 30, 2026 ("Reporting Period"). The Company delivered a stellar performance during the Reporting Period, with profitability seeing a substantial uplift. Revenue stood at approx. RMB 11.533bn (+32.4% YoY); net profit attributable to shareholders was approx. RMB 2.305bn (+166.1% YoY); and EPS was approx. RMB 1.11 (+91.4% YoY). Profit growth was primarily driven by higher electrolytic aluminum sales prices, an increased proportion of green power usage effectively lowering production costs, and continuous optimization of the financing structure to reduce financial expenses.

Leveraging its integrated "Energy - Alumina Refining - Electrolytic Aluminum Smelting" supply chain built over years, the Company has continuously enhanced resource security and cost control capabilities. Positive progress has been made in supply chain synergy, energy security, green power substitution, and global layout, further improving operational efficiency and profitability. The Company demonstrated strong profit resilience amidst industry cyclical fluctuations, laying a solid foundation for high-quality future development.

Integrated Supply Chain Advantages Continuously Released, Profitability Achieves Leapfrog Growth

The Company has deepened its focus on the upstream aluminum supply chain for years, constructing an integrated system covering "Energy — Alumina Refining — Electrolytic Aluminum Smelting". Currently, it possesses an annual electrolytic aluminum capacity of 788.1k tons and supporting captive power plants in Holingol City, Inner Mongolia, and alumina refining and aluminum hydroxide production bases in Binzhou City, Shandong Province, forming stable and efficient resource security capabilities.

Relying on this well-established integrated layout, the Company's self-sufficiency in alumina and power can cover 100% of production needs, effectively mitigating impacts from raw material and energy price volatility, further consolidating its cost competitiveness. Meanwhile, the Company continues to advance refined management and cost control, fully leveraging supply chain synergies to demonstrate strong profit elasticity and risk resistance during market recovery cycles. Benefiting from year-on-year increases in electrolytic aluminum product prices during the Reporting Period, the Company's profitability saw significant improvement, fully reflecting the synergistic effects and anti-cyclical capabilities brought by its integrated layout. Additionally, the Company completed the acquisition of the remaining equity in Shandong Chuangyuan New Material Technology Co., Ltd. and 100% equity in Tongliao Smart Mining Co., Ltd., continuously optimizing upstream resource layout, further enhancing raw material security and supply chain synergy, providing strong support for steady future development.

Green Energy Layout Deepens, Digital & Intelligent Transformation Accelerates

The Company adheres to green and low-carbon development concepts, actively promoting new energy project construction to increase the proportion of green energy usage. By the end of June 2026, the Company had commissioned 1,040 MW of wind power and 110 MW of solar capacity, with an overall completion rate of approx. 66% for new energy projects. As subsequent projects are completed and put into operation, the proportion of green energy usage is expected to exceed 50%, further reducing energy costs and enhancing profitability and market competitiveness.

This green energy layout not only effectively lowers production costs but also helps the Company create green aluminum products aligned with global low-carbon trends, meeting the growing demand for low-carbon materials in sectors such as new energy vehicles, high-end manufacturing, consumer electronics, and green buildings, thereby continuously increasing product added value and market competitiveness. Concurrently, the Company advances smart manufacturing and digital/intelligent upgrades, accelerating the deployment of production equipment, automated control systems, and information platforms. It promotes full-graphitized cathode retrofits, copper-embedded steel bar cell applications, and energy-saving technology upgrades, continuously improving production efficiency, energy utilization efficiency, and product quality.

In terms of sustainability, the Company continuously improves its ESG governance system, releasing its first ESG report and establishing a Board ESG Committee. It elevates environmental, social, and corporate governance standards, actively promotes green manufacturing and emission reduction, and further enhances corporate sustainable development capabilities.

Global Strategy Steadily Advances, Building a World-Class Green Aluminum Industry Group

While consolidating its domestic industrial base, the Company actively advances its globalization strategy, accelerating overseas capacity layout to enhance global resource allocation capabilities and international market competitiveness. In 2025, the Company co-invested with partners in a comprehensive Saudi Arabian project with an annual electrolytic aluminum capacity of 500k tons. By the end of June 2026, the project had completed all compliance approvals, with on-site construction fully underway. Construction activities are progressing steadily according to plan, leveraging the energy cost and locational advantages of the Saudi region to provide crucial support for the Company's global industrial layout.

The global energy structural transformation and rapid development of new energy and high-end manufacturing industries will continue to drive demand growth for high-quality, low-carbon aluminum materials. In the future, the Company will leverage its integrated supply chain and green energy advantages to continuously enhance cost competitiveness and operational efficiency. Relying on its international layout, it will further expand into global markets, continuously strengthening its long-term sustainable development capabilities.

Looking ahead, the Company will continue to deepen its focus on the aluminum supply chain. Relying on its integrated industrial layout, green energy advantages, and continuously improving operational management capabilities, it will constantly enhance core competitiveness, elevate its market position and comprehensive influence in the global aluminum industry, and steadily advance towards becoming a globally competitive green aluminum enterprise.

About Innovation Industrial Group Co., Ltd.

Innovation Industrial Group Co., Ltd. (Stock Code: 02788.HK), founded in 2012 and successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited in November 2025, is an integrated producer focused on the upstream aluminum supply chain—alumina refining and electrolytic aluminum smelting. Its business covers the production and sale of electrolytic aluminum and alumina products. Since 2012, the Company has strategically laid out and deepened its presence in two major production bases in Holingol City, Inner Mongolia, and Binzhou City, Shandong Province. It has built a highly self-sufficient, strongly complementary, and synergistic electrolytic aluminum supply chain integrated ecosystem covering "Energy – Alumina Refining – Electrolytic Aluminum Smelting". The Company's ability to manage cash cost per ton of aluminum ranks among the top Chinese electrolytic aluminum smelters and is competitive globally. Prioritizing sustainability, the Company continuously promotes the construction of its integrated electrolytic aluminum ecosystem, consolidates cost advantages, invests in R&D, and enhances competitiveness and market recognition. It is committed to reducing carbon emissions across the electrolytic aluminum supply chain, aiming for long-term business green transformation.