A Chinese state-owned investment platform is taking a 28.3% controlling stake in aluminium die-caster Huayang Group for about €724 million, as EV and AI-data-center demand drives the division's growth.
At a glance
- Sichuan Jiuzhou Investment Holding Group, tied to Mianyang's state-owned assets regulator, is buying a 28.3% controlling stake in Huayang Group for about €724 million at €4.87 per share.
- Huayang, also known as Foryou Corporation, runs a precision die-casting division processing aluminium, magnesium and zinc alloys for automotive, EV, AI data-center and robotics customers.
- The die-casting division's H1 2026 revenue rose 21.81% year-on-year to about €201 million, with AI-related orders alone exceeding €256 million.
- Group-wide H1 2026 revenue grew 30.36% to roughly €885 million, with net profit up 17.55% to about €51 million.
What happened
Sichuan Jiuzhou Investment Holding Group, an investment platform ultimately controlled by the State-owned Assets Supervision and Administration Commission (SASAC) of Mianyang, Sichuan province, has agreed to acquire a 28.3% stake -- roughly 149 million shares -- in Huayang Group (Shenzhen: 002906) from existing shareholder Huizhou Huayue Investment at €4.87 per share, a transaction valued at approximately €724 million that hands the state-owned investor control of the company. Huayang, also known internationally as Foryou Corporation, was founded in 1993, is headquartered in Huizhou, Guangdong province, and listed on the Shenzhen Stock Exchange in October 2017. Its businesses span automotive electronics, precision die casting, optoelectronic components and LED lighting. The precision die-casting division, established in 2003, processes aluminium, magnesium and zinc alloys into parts for transmission and braking systems, electric-vehicle components, AI data-center thermal management hardware, robotics and optical communication connectors. That division generated roughly €201 million in revenue in the first half of 2026, up 21.81% year-on-year, while group-wide revenue rose 30.36% to about €885 million and net profit climbed 17.55% to around €51 million over the same period. AI-related project orders alone topped €256 million. Huayang is expanding die-casting capacity in China and is set to start new production in Thailand by the end of 2026.
The details
Die casting is a manufacturing process where molten metal -- aluminium, magnesium or zinc alloy -- gets forced under high pressure into a reusable steel mold, producing precise, thin-walled parts at volume. It's an unglamorous industrial process, but it sits directly under two of the fastest-growing demand trends in global manufacturing right now, and Huayang's own numbers show it. Electric vehicles need more die-cast aluminium than combustion cars do, not less: battery enclosures, motor housings and structural castings replace what used to be stamped steel, because aluminium's weight savings extend range. AI data centers need it for a completely different reason -- high-density server racks generate concentrated heat, and die-cast aluminium housings and heat-exchanger components are a standard way to manage that thermal load at scale. Huayang's AI-related order book topping €256 million, against a die-casting division growing revenue almost 22% in six months, isn't a speculative narrative -- it's a number on the books.
That context is what makes a state-owned investment platform's interest make sense. Local governments in China routinely use SASAC-linked investment holding companies to take strategic stakes in private manufacturers positioned inside national industrial priorities -- advanced manufacturing, new-energy vehicles, and increasingly AI infrastructure. Sichuan Jiuzhou Investment Holding Group buying out Huayang's prior controlling shareholder, Huizhou Huayue Investment, in a single 28.3% block is a fairly standard mechanism for that kind of transition: in a Shenzhen-listed company with a dispersed remaining shareholder base, a single block that size, acquired directly from the outgoing controlling shareholder, is enough to install a new controlling shareholder without needing a majority of total shares outstanding.
Worth noting: the group's overall revenue actually grew faster than the die-casting division alone -- 30.36% versus 21.81% -- which means Huayang's automotive electronics, optoelectronics and lighting segments are also contributing real momentum, not just riding on die casting's coattails. That broader growth profile, not just one hot product line, is likely part of what made the company an attractive target for state capital in the first place.
Why it matters
For MetalsCost readers tracking aluminium and zinc demand, Huayang's numbers are a concrete data point on where real, evidenced growth in metal-component demand is coming from right now -- EV lightweighting and AI-infrastructure thermal management, not just the traditional auto replacement cycle. State capital backing a fast-growing die-casting supplier also signals that Chinese industrial policy sees metal-forming capacity feeding EVs and AI hardware as strategically worth owning, a trend Indian and other non-China component makers and metal buyers will increasingly compete and benchmark against.
Our read
Outlook: bullish. Evidenced double-digit revenue growth in aluminium die casting, tied to EV and AI-infrastructure demand and now backed by state-owned capital, is a bullish signal for aluminium and zinc component demand -- though a single company's ownership change has limited direct effect on benchmark LME aluminium prices.
What to watch
- Regulatory approval and completion timeline for the Sichuan Jiuzhou Investment Holding Group transaction
- Huayang's H2 2026 earnings for continued die-casting and AI-order momentum
- Progress on Huayang's new Thailand production line, due by the end of 2026
- Further AI-infrastructure order announcements from the die-casting division
For information only, not investment advice.
Aluminium price in India
metalscost.com India reference price as of 2026-10-03.
Detailed analysis
Timeline
- 2003: Huayang Group established its precision die-casting division.
- 2017-10: Huayang Group listed on the Shenzhen Stock Exchange.
- 2026-09-22: Sichuan Jiuzhou Investment Holding Group agreed to acquire a 28.3% controlling stake in Huayang Group for around €724 million.
Demand Drivers
Electric-vehicle lightweighting and AI data-center thermal management are driving real, evidenced demand growth for die-cast aluminium, magnesium and zinc components -- Huayang's precision die-casting division grew H1 2026 revenue 21.81% year-on-year, with AI-related orders alone exceeding €256 million.
Government Policies
A state-owned investment platform tied to the Mianyang, Sichuan branch of China's State-owned Assets Supervision and Administration Commission (SASAC) is taking a controlling stake in Huayang Group, signaling local government industrial-policy backing for die-casting capacity serving EV and AI-infrastructure supply chains.
What could lift prices
- Die-casting division revenue grew 21.81% year-on-year in H1 2026 with AI-related orders alone exceeding €256 million, evidencing real demand rather than a projected trend.
- State-owned capital backing signals confidence in the business and access to strategic support as it expands.
- Group-wide revenue growth of 30.36% shows momentum extends beyond the die-casting segment alone.
- International capacity expansion into Thailand diversifies production beyond China.
What could weigh on prices
- State control could reduce the operational independence and speed typical of a private manufacturer navigating fast-moving EV and AI-hardware customer demands.
- Die casting is capital- and energy-intensive and exposed to swings in aluminium, zinc and magnesium input costs that could pressure margins even as revenue grows.
Country impact
| Country | Impact | Reason |
|---|---|---|
| China | High | The deal shifts control of a major Shenzhen-listed die-casting supplier to a state-owned investment platform, reflecting broader Chinese industrial-policy interest in advanced manufacturing serving EVs and AI infrastructure. |
| Thailand | Low | Huayang is set to start new die-casting production in Thailand by the end of 2026, extending its manufacturing footprint outside China. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Automotive Manufacturing | Positive | Huayang's die-casting division continues to supply transmission and braking components alongside its faster-growing EV and AI-related product lines. |
| Electric Vehicle Manufacturing | Positive | Expanded, state-backed die-casting capacity supports continued supply of lightweight aluminium components for EV battery enclosures and motor housings. |
| Data Center Infrastructure | Positive | Huayang's AI-related project orders, which topped €256 million, are tied to die-cast aluminium components used in thermal management for high-density server hardware. |
Who gains, who loses
- Huayang Group's die-casting division: Gains state-linked capital and strategic backing as it expands capacity in China and starts new production in Thailand.
- Sichuan Jiuzhou Investment Holding Group: Acquires a controlling stake in a manufacturer with double-digit revenue growth and a fast-expanding AI-infrastructure order book.
- Huizhou Huayue Investment: The outgoing controlling shareholder is exiting its 28.3% stake in the transaction, ceding control of the company it previously led.
Other ways this could play out
- If AI-server capital spending continues at its current pace, Huayang's AI-related order book could keep expanding beyond the €256 million already secured.
- If China's EV growth or global AI-infrastructure capex cools, die-casting demand growth could slow from the 21.81% pace seen in H1 2026.
Price risks
- Aluminium, zinc and magnesium input cost volatility could pressure die-casting margins even as order volumes grow.
- A slowdown in China's EV sales growth or global AI-data-center capital spending could soften demand for die-cast components.
Historical comparison
- H1 2025 to H1 2026: Huayang's die-casting division grew revenue 21.81% year-on-year, while the group overall grew even faster at 30.36%, showing momentum extends beyond die casting into the company's other segments too.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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