Jiangxi Copper's board approved the spin-off of its 70.19%-owned copper foil subsidiary for a Hong Kong Main Board listing. The company plans to issue H shares representing up to 15 percent of the enlarged capital, with an over-allotment option of the same size.
JIANGXI COPPER (00358.HK) approved the spin-off and Hong Kong Main Board listing of its 70.19%-owned subsidiary Jiangxi JCC Copper Foil, the company said in a filing.
The H shares to be issued will account for no more than 15 percent of Jiangxi JCC Copper Foil's total enlarged share capital after issuance. An over-allotment option may be exercised subject to strong market demand, with the over-allotment size proposed at no more than 15 percent of the initial H-share offering size.
Jiangxi Copper shares fell 4.1 percent on the day, with short selling reaching HK$37.2 million, representing 7.9 percent of turnover. The stock has declined about 12 percent over the past month as copper prices retreated from record highs on the London Metal Exchange after slowing Chinese industrial demand weighed on the metal.
Jiangxi JCC Copper Foil produces ultra-thin copper foil used in lithium-ion batteries for electric vehicles and in printed circuit boards for consumer electronics. The subsidiary represents Jiangxi Copper's push into higher-margin downstream processing, adding value beyond its core copper smelting and mining operations. China produced about 1.2 million metric tons of copper foil in 2025, with output expanding rapidly to meet EV battery demand, according to industry data. Copper foil demand from the EV sector has grown at an annual rate of more than 20 percent over the past three years, driven by rising battery production and longer driving ranges.
The spin-off would give investors direct exposure to the copper foil segment, a key beneficiary of the global energy transition. Jiangxi Copper would retain a majority stake in the listed entity. The company did not disclose the proposed offer price, deal size, cornerstone investors, or expected listing timeline. Further details are expected in the listing application to be filed with the Hong Kong stock exchange.
The listing plan comes as Chinese copper foil producers face margin pressure from overcapacity and falling lithium battery prices. Jiangxi JCC Copper Foil competes with listed peers such as Nuode Investment and Tongling Nonferrous Metals Group in the domestic market. A successful HK listing would provide capital for capacity expansion and technology upgrades in the ultra-thin foil segment, where thickness has dropped to 4.5 micrometers for advanced battery applications.
For Jiangxi Copper, the spin-off could unlock valuation for a high-growth subsidiary while the parent trades at a discount to global peers. The company reported 2025 revenue of approximately 520 billion yuan, making it one of China's largest copper producers with an annual refined copper output exceeding 2 million metric tons. Investors will watch for the listing application filing with HKEX for pricing and valuation details.
This article is for informational purposes only and does not constitute investment advice.
