Core Viewpoint - China Hongqiao Group Limited reported a significant increase in revenue and profit for the first half of 2025, driven by higher sales prices and volumes of aluminum alloy and alumina products [1][3]. Financial Summary - Revenue reached 81.04 billion RMB, a year-on-year increase of approximately 10.1% from 73.59 billion RMB [6]. - Gross profit was approximately 20.81 billion RMB, reflecting a year-on-year increase of about 16.9% [7]. - Net profit attributable to shareholders was around 12.36 billion RMB, up approximately 35.0% from 9.15 billion RMB [9]. - Basic earnings per share increased by 36.0% to 1.314 RMB [9]. - The company maintained a stable debt-to-asset ratio of 49.1% [10]. Operational Highlights - The sales volume of aluminum alloy products was 2.906 million tons, a year-on-year increase of about 2.4%, with an average selling price rising by 2.7% to approximately 17,853 RMB per ton [1][13]. - The sales volume of alumina products reached 6.368 million tons, up 15.6%, with an average selling price increasing by 10.3% to 3,243 RMB per ton [1][13]. - The sales volume of aluminum alloy processing products was 392,000 tons, a year-on-year increase of 3.5%, with an average selling price rising by 2.9% to 20,615 RMB per ton [1][13]. Business Overview - China Hongqiao is a leading aluminum product manufacturer in China, primarily engaged in the production and sale of liquid aluminum alloys, aluminum alloy ingots, aluminum alloy processing products, and alumina [3]. - The company focuses on vertical integration and global integration strategies to enhance cost advantages and scale effects, maintaining its leading position in the global aluminum industry [3]. Industry Overview - The global electrolytic aluminum production was approximately 21.84 million tons, with a year-on-year increase of 4.3%, while global consumption was about 36.59 million tons, up 1.8% [15]. - The average price of LME spot aluminum was approximately 2,539 USD per ton, reflecting a year-on-year increase of 7.7% [17].

Core Viewpoint - China Hongqiao Group has reported significant growth in its mid-year performance, driven by rising aluminum prices and effective global operations, leading to increased revenue and profit metrics [1][2]. Financial Performance - Revenue for the period reached approximately 81.04 billion RMB, a year-on-year increase of 10.1% [1] - Gross profit was about 20.81 billion RMB, up 16.9% year-on-year [1] - Net profit surged by 35.4% to 13.55 billion RMB, with shareholders' net profit rising 35% to approximately 12.36 billion RMB [1] - The overall gross margin increased by 1.5 percentage points to 25.7%, indicating top-tier performance within the industry [4] Market Dynamics - The global aluminum price is expected to rise, with the LME three-month aluminum average price projected at approximately $2,546 per ton, a 6.0% year-on-year increase [2] - Global aluminum production and consumption are both on the rise, with production at approximately 36.59 million tons (up 1.8%) and consumption at about 36.72 million tons (up 3.1%) for the first half of 2025 [2][3] - China accounts for about 62.6% of global aluminum consumption, making domestic demand growth crucial for aluminum companies [3] Operational Efficiency - The company has effectively managed costs, with a 3.4% reduction in sales expenses and a 17.7% decrease in financial costs due to lower financing rates [6] - Operating cash flow increased significantly, with cash and cash equivalents rising 8.9% to 44.77 billion RMB, reflecting strong financial health [6] Debt Management - China Hongqiao issued two USD senior unsecured bonds totaling $600 million, with a coupon rate between 6.925% and 7.05%, achieving a 12-fold oversubscription [7] - The company also issued a $300 million convertible bond with a low interest rate of 1.5%, marking a unique financing strategy in the Hong Kong capital market [7] Shareholder Returns - The company has repurchased shares worth 2.61 billion HKD, totaling approximately 187 million shares, and plans to continue its buyback program with a new guidance of no less than 3 billion HKD [8] - The stock price has doubled since the beginning of the year, reflecting investor confidence and the company's commitment to shareholder returns [8]

董事会认为，拟进行的购回符合公司及股东的整体利益;拟进行的购回显示公司及其管理团队对集团业 务的未来前景充满信心，并认同集团的长远价值。 董事将根据购回授权、公司组织章程细则、香港联合交易所有限公司证券上市规则、公司收购、合并及 股份回购守则及公司须遵守的所有其他适用法律及规定实施拟进行的购回。 智通财经APP讯，中国宏桥(01378)发布公告，基于对集团未来前景及长远投资价值的坚定信心，并考虑 到集团的财务状况及营运表现，董事会拟行使公司股东于2025年5月7日举行的股东周年大会授予公司董 事的购回股份授权，根据市况不时于公开市场购回公司股份(拟进行的购回)，计划购回总金额不低于30 亿港元。拟进行的购回的期限直至购回授权有效期届满日期，除非董事会决定终止拟进行的购回。 ...

董事将根据购回授权、公司组织章程细则、香港联合交易所有限公司证券上市规则、公司收购、合并及 股份回购守则及公司须遵守的所有其他适用法律及规定实施拟进行的购回。 中国宏桥(01378)发布公告，基于对集团未来前景及长远投资价值的坚定信心，并考虑到集团的财务状 况及营运表现，董事会拟行使公司股东于2025年5月7日举行的股东周年大会授予公司董事的购回股份授 权，根据市况不时于公开市场购回公司股份(拟进行的购回)，计划购回总金额不低于30亿港元。拟进行 的购回的期限直至购回授权有效期届满日期，除非董事会决定终止拟进行的购回。 董事会认为，拟进行的购回符合公司及股东的整体利益;拟进行的购回显示公司及其管理团队对集团业 务的未来前景充满信心，并认同集团的长远价值。 ...

董事将根据购回授权、公司组织章程细则、香港联合交易所有限公司证券上市规则、公司收购、合并及 股份回购守则及公司须遵守的所有其他适用法律及规定实施拟进行购回。董事会认为，拟进行购回符合 公司及股东的整体利益；拟进行购回显示公司及其管理团队对集团业务的未来前景充满信心，并认同集 团的长远价值。 格隆汇8月15日丨中国宏桥(01378.HK)公告，董事会拟行使公司股东于2025年5月7日举行股东周年大会 授予公司董事购回股份授权，根据市况不时于公开市场购回本公司股份，计划购回总金额不低于30亿港 元。拟进行购回的期限直至购回授权有效期届满日期，除非董事会决定终止拟进行购回。 ...

Core Viewpoint - China Hongqiao (01378) reported a 10.1% year-on-year increase in revenue for the first half of 2025, amounting to approximately 81.039 billion yuan, driven by higher sales prices and volumes of aluminum alloy and alumina products [1] Financial Performance - Revenue increased by approximately 10.1% year-on-year to about 81.039 billion yuan [1] - Gross profit reached approximately 20.805 billion yuan, reflecting a year-on-year increase of about 16.9% [1] - Net profit attributable to shareholders was approximately 12.361 billion yuan, marking a year-on-year increase of about 35.0% [1] - Basic earnings per share were reported at 1.314 yuan [1] Product Sales Performance - Aluminum alloy product sales volume reached approximately 2.906 million tons, a 2.4% increase from approximately 2.837 million tons in the same period last year [1] - Average selling price of aluminum alloy products rose by approximately 2.7% year-on-year to about 17,853 yuan per ton (excluding VAT) [1] - Alumina product sales volume was approximately 6.368 million tons, reflecting a year-on-year increase of about 15.6% [1] - Average selling price of alumina products increased by approximately 10.3% year-on-year to about 3,243 yuan per ton (excluding VAT) [1] - Sales volume of aluminum alloy processing products reached approximately 392,000 tons, a 3.5% increase year-on-year [1] - Average selling price of aluminum alloy processing products rose by approximately 2.9% year-on-year to about 20,615 yuan per ton (excluding VAT) [1]

Core Viewpoint - China Hongqiao (01378) reported a 10.1% year-on-year increase in revenue for the first half of 2025, amounting to approximately 81.039 billion yuan, driven by higher sales prices and volumes of aluminum alloy and alumina products [1] Financial Performance - Revenue increased by approximately 10.1% year-on-year to about 81.039 billion yuan [1] - Gross profit reached approximately 20.805 billion yuan, reflecting a year-on-year increase of about 16.9% [1] - Net profit attributable to shareholders was approximately 12.361 billion yuan, marking a year-on-year increase of about 35.0% [1] - Basic earnings per share stood at 1.314 yuan [1] Product Sales and Pricing - Aluminum alloy product sales volume reached approximately 2.906 million tons, a year-on-year increase of about 2.4% [1] - Average selling price of aluminum alloy products rose by approximately 2.7% year-on-year to about 17,853 yuan per ton (excluding VAT) [1] - Alumina product sales volume was approximately 6.368 million tons, reflecting a year-on-year increase of about 15.6% [1] - Average selling price of alumina products increased by approximately 10.3% year-on-year to about 3,243 yuan per ton (excluding VAT) [1] - Sales volume of aluminum alloy processing products reached approximately 392,000 tons, a year-on-year increase of about 3.5% [1] - Average selling price of aluminum alloy processing products rose by approximately 2.9% year-on-year to about 20,615 yuan per ton (excluding VAT) [1]

Core Insights - The company reported a revenue of approximately RMB 81.039 billion for the six months ending June 30, 2025, representing a year-on-year increase of about 10.1% [1] - Gross profit reached approximately RMB 20.805 billion, reflecting a year-on-year increase of about 16.9% [1] - Net profit attributable to shareholders was approximately RMB 12.361 billion, marking a year-on-year increase of about 35.0% [1][2] - Basic earnings per share were approximately RMB 1.314 [1] Revenue and Sales Performance - Revenue growth was primarily driven by increased sales prices and quantities of aluminum alloy and alumina products [1][2] - Aluminum alloy product sales volume reached approximately 2.906 million tons, a year-on-year increase of about 2.4% [1] - The average selling price of aluminum alloy products rose by approximately 2.7% to about RMB 17,853 per ton (excluding VAT) [1] - Alumina product sales volume was approximately 6.368 million tons, a year-on-year increase of about 15.6% [1] - The average selling price of alumina products increased by approximately 10.3% to about RMB 3,243 per ton (excluding VAT) [1] - Sales volume of aluminum alloy processed products was approximately 392,000 tons, a year-on-year increase of about 3.5% [1] - The average selling price of aluminum alloy processed products rose by approximately 2.9% to about RMB 20,615 per ton (excluding VAT) [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴該等內容 而引致之任何損失承擔任何責任。 China Hongqiao Group Limited 董事會認為，擬進行之購回符合本公司及股東的整體利益；擬進行之購回顯示本公司及其管理團隊 對本集團業務的未來前景充滿信心，並認同本集團的長遠價值。 1 股東及潛在投資者務請注意，本公司於市場上擬進行之購回將受市況規限，並將由董事會及╱或其 授權人士全權酌情決定。概不能保證任何擬進行之購回之時間、數量或價格。股東及潛在投資者於 買賣本公司股份時務須審慎行事。 承董事會命 中國宏橋集團有限公司 （根據開曼群島法例成立的有限公司） （股份代號：1378） 自願公告 根據購回授權於市場上購回股份的計劃 本公告乃由中國宏橋集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）自願作出。 本公司董事會（「董事會」）謹此宣佈，基於對本集團未來前景及長遠投資價值的堅定信心，並考慮到 本集團的財務狀況及營運表現，董事會擬行使本公司股東於二零二五年五月七日舉行之股東週 ...

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) The company's financial performance for the six months ended June 30, 2025, showed significant growth in revenue, gross profit, and net profit Performance Highlights for the Six Months Ended June 30, 2025 | Metric | Change | Amount (CNY) | | :--- | :--- | :--- | | Revenue | ▲ 10.1% | 81,039,092,000 | | Gross Profit | ▲ 16.9% | 20,805,191,000 | | Profit for the Period | ▲ 35.4% | 13,551,310,000 | | Net Profit Attributable to Owners of the Company | ▲ 35.0% | 12,361,046,000 | | Basic Earnings Per Share | ▲ 36.0% | 1.314 | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including income statement and balance sheet, for the reporting period [Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2025, the company achieved revenue of CNY 81.04 billion, a 10.1% increase, with profit for the period reaching CNY 13.55 billion, up 35.4%, driven by revenue growth and cost control, leading to a 36.0% rise in basic EPS to CNY 1.314 Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Item | 2025 (CNY Thousand) | 2024 (CNY Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 81,039,092 | 73,592,249 | ▲ 10.1% | | Gross Profit | 20,805,191 | 17,801,761 | ▲ 16.9% | | Profit Before Tax | 17,763,982 | 13,870,989 | ▲ 28.1% | | Profit for the Period | 13,551,310 | 10,007,876 | ▲ 35.4% | | Profit Attributable to Owners of the Company | 12,361,046 | 9,154,911 | ▲ 35.0% | | Basic Earnings Per Share (CNY) | 1.314 | 0.966 | ▲ 36.0% | [Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were CNY 228.46 billion, slightly down from year-end 2024, with net assets at CNY 116.32 billion and cash increasing to CNY 48.74 billion, while current liabilities rose due to maturing debt Summary Statement of Financial Position | Item | As of June 30, 2025 (CNY Thousand) | As of December 31, 2024 (CNY Thousand) | | :--- | :--- | :--- | | **Total Assets** | **228,463,164** | **229,165,032** | | Non-current Assets | 125,597,771 | 119,340,473 | | Current Assets | 102,865,393 | 109,824,559 | | **Total Liabilities** | **112,138,581** | **110,551,534** | | Non-current Liabilities | 32,379,169 | 33,568,985 | | Current Liabilities | 79,759,412 | 76,982,549 | | **Total Equity** | **116,324,583** | **118,613,498** | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, offering further insights into specific accounts and transactions [Note 4: Revenue](index=8&type=section&id=Note%204.%20Revenue) Total revenue for H1 2025 was CNY 81.04 billion, primarily from aluminum product sales, with liquid aluminum alloy and alumina products contributing CNY 48.74 billion and CNY 20.65 billion respectively, while China accounted for over 92% of revenue Revenue by Product and Region (For the Six Months Ended June 30) | Revenue Source | 2025 (CNY Thousand) | Proportion | | :--- | :--- | :--- | | **By Product** | | | | Liquid Aluminum Alloy | 48,738,576 | 60.1% | | Alumina Products | 20,654,946 | 25.5% | | Aluminum Alloy Processed Products | 8,074,302 | 10.0% | | Others | 3,571,268 | 4.4% | | **By Region** | | | | China | 75,358,618 | 93.0% | | India | 2,709,968 | 3.3% | | Others | 2,970,506 | 3.7% | [Notes 5-6: Expenses and Fair Value Changes](index=9&type=section&id=Notes%205-6.%20Expenses%20and%20Fair%20Value%20Changes) Other expenses significantly decreased to CNY 274 million due to reduced impairment losses on property, plant, and equipment, while fair value losses on financial instruments expanded to CNY 2.11 billion, mainly from convertible bond derivatives - Other expenses significantly decreased year-on-year, primarily due to impairment losses on property, plant, and equipment falling from **CNY 534 million** in the prior period to **CNY 59 million** in the current period[14](index=14&type=chunk) - Fair value changes on financial instruments resulted in an expanded loss of **CNY 2.11 billion**, mainly impacted by a **CNY 2.56 billion** loss from fair value changes of the convertible bond derivative component[14](index=14&type=chunk) [Note 8: Dividends](index=10&type=section&id=Note%208.%20Dividends) The Board did not recommend an interim dividend for H1 2025, but the final dividend for 2024, totaling approximately CNY 8.67 billion (HKD 102 cents per share), was significantly higher than the previous year - The Board did not recommend an interim dividend for **2025**[16](index=16&type=chunk) - The total final dividend for **2024** recognized during the period was approximately **CNY 8.67 billion**, representing a significant year-on-year increase[16](index=16&type=chunk) [Note 10: Property, Plant and Equipment](index=11&type=section&id=Note%2010.%20Property%2C%20Plant%20and%20Equipment) During the period, the Group significantly increased investment in property, plant, and equipment, spending approximately CNY 7.70 billion on new production lines and plants, a 59.8% increase, while impairment losses on equipment substantially decreased to CNY 59 million - The Group invested approximately **CNY 7.70 billion** in constructing new production lines and plants, a **59.8%** year-on-year increase (compared to CNY 4.82 billion in the prior period)[19](index=19&type=chunk) - Impairment losses on property, plant, and equipment amounted to approximately **CNY 58.61 million**, a significant reduction from **CNY 534 million** in the prior period[20](index=20&type=chunk) [Notes 15-16: Share Capital and Commitments](index=13&type=section&id=Notes%2015-16.%20Share%20Capital%20and%20Commitments) As of June 30, 2025, the company had 9.288 billion shares issued, having repurchased and cancelled 187.23 million shares for CNY 2.42 billion, and has significant capital expenditure commitments of CNY 7.4 billion and a USD 1.78 billion performance guarantee for the Simandou project - During the period, the company repurchased and cancelled a total of **187,229,500** of its own ordinary shares on the Stock Exchange for a total consideration of approximately **CNY 2.42 billion**[27](index=27&type=chunk)[28](index=28&type=chunk) - The Group has significant future capital commitments, including approximately **CNY 7.40 billion** for property, plant, and equipment capital expenditures, and a performance guarantee not exceeding **USD 1.78 billion** for the Simandou iron ore project[30](index=30&type=chunk) [Chairman's Report](index=15&type=section&id=Chairman%27s%20Report) The Chairman's Report provides an overview of the company's performance, strategic initiatives, and future outlook amidst global economic conditions [Performance Review and Operating Strategy](index=15&type=section&id=Performance%20Review%20and%20Operating%20Strategy) Despite global economic slowdown, the Group achieved strong H1 performance with 35.0% net profit growth, driven by robust China market demand and rising aluminum prices, leveraging its integrated industrial chain and cost control advantages while transforming towards high-end, intelligent, and green manufacturing - Despite global economic slowdown, China's economy showed steady momentum and cyclical improvement, with growing demand for aluminum in new energy vehicles and renewable energy sectors supporting the company's performance[31](index=31&type=chunk)[32](index=32&type=chunk) - Leveraging its integrated industrial chain and cost control advantages, the company achieved high profitability amidst rising aluminum prices, demonstrating strong risk resilience[33](index=33&type=chunk) - The company's strategy focuses on industrial optimization and upgrading, perfecting the complete industrial chain from bauxite to recycled aluminum, and promoting low-carbon transformation[34](index=34&type=chunk) [Green Development and Technological Innovation](index=16&type=section&id=Green%20Development%20and%20Technological%20Innovation) The Group released its Carbon Reduction Action Report, setting "25 • 55 Dual Carbon" goals for operational carbon peaking by 2025 and carbon neutrality by 2055, while achieving key technological breakthroughs in electrolytic cell measurement systems and lightweight chassis components - Released the "Carbon Reduction Action Report," proposing the "**25 • 55 Dual Carbon**" goals, committing to carbon peaking by **2025** and carbon neutrality by **2055**[35](index=35&type=chunk) - The Binzhou Aluminum Industry Advanced Manufacturing Shandong Provincial Laboratory opened, promoting collaborative innovation across the industrial chain[36](index=36&type=chunk) - The "Electrolytic Cell Dual-Level and Cell Temperature Automatic Measurement System" is operational, and lightweight chassis components have achieved mass delivery, demonstrating significant technological innovation achievements[36](index=36&type=chunk) [Capital Market Performance and Outlook](index=18&type=section&id=Capital%20Market%20Performance%20and%20Outlook) The Group's subsidiaries achieved AAA credit ratings, successfully issued CNY 8.1 billion in domestic bonds and USD 600 million in overseas bonds, and completed a pioneering "convertible bond + share repurchase" financing, demonstrating market confidence and a commitment to stable dividends despite future uncertainties - Subsidiaries Shandong Hongqiao and Weiqiao Aluminum & Electricity both had their corporate credit ratings upgraded to **AAA**[38](index=38&type=chunk) - Successfully issued domestic bonds totaling **CNY 8.1 billion** and USD bonds totaling **USD 600 million**[38](index=38&type=chunk) - Innovatively issued **USD 300 million** convertible bonds concurrently with a share repurchase, marking the first "convertible bond + repurchase" case in the Hong Kong stock market[38](index=38&type=chunk) - Looking ahead to the second half, the company will continue to advance steadily and is committed to rewarding shareholders with stable full-year dividends[39](index=39&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed analysis of the company's operational performance, financial position, and future outlook, including industry trends and key financial metrics [Industry Review](index=19&type=section&id=Industry%20Review) In H1 2025, global electrolytic aluminum prices rose, with LME and SHFE average prices increasing by 6.0% and 1.9% respectively, while global primary aluminum production grew 1.8% and consumption 3.1%, with China accounting for approximately 60% of both and showing stronger consumption growth Global and China Primary Aluminum Market Data for H1 2025 | Metric | Global | China | China's Share of Global | | :--- | :--- | :--- | :--- | | Primary Aluminum Production | 36.59 million tonnes (▲1.8%) | 21.84 million tonnes (▲2.4%) | 59.7% | | Primary Aluminum Consumption | 36.72 million tonnes (▲3.1%) | 22.97 million tonnes (▲4.3%) | 62.6% | - The average LME three-month aluminum price was approximately **USD 2,546/tonne**, up approximately **6.0%** year-on-year[40](index=40&type=chunk) - The average SHFE three-month aluminum price was approximately **CNY 20,226/tonne**, up approximately **1.9%** year-on-year[40](index=40&type=chunk) [Business and Financial Performance Analysis](index=20&type=section&id=Business%20and%20Financial%20Performance%20Analysis) H1 2025 revenue grew 10.1% to CNY 81.04 billion, with net profit attributable to owners increasing 35.0% to CNY 12.36 billion, driven by higher volumes and prices of aluminum alloy and alumina products, leading to an overall gross profit margin improvement from 24.2% to 25.7% Key Product Sales Volume and Average Selling Price Changes (Year-on-Year) | Product | Sales Volume Change | Average Selling Price Change | | :--- | :--- | :--- | | Aluminum Alloy Products | ▲ 2.4% | ▲ 2.7% | | Alumina Products | ▲ 15.6% | ▲ 10.3% | | Aluminum Alloy Processed Products | ▲ 3.5% | ▲ 2.9% | Gross Profit Margin Performance by Product Segment | Product | H1 2025 Gross Profit Margin | H1 2024 Gross Profit Margin | Change (Percentage Points) | | :--- | :--- | :--- | :--- | | Aluminum Alloy Products | 25.2% | 24.6% | ▲ 0.6 | | Alumina | 28.8% | 25.4% | ▲ 3.4 | | Aluminum Alloy Processed Products | 23.3% | 21.0% | ▲ 2.3 | | **Total** | **25.7%** | **24.2%** | **▲ 1.5** | [Cost and Expense Analysis](index=22&type=section&id=Cost%20and%20Expense%20Analysis) During the period, the Group effectively controlled expenses, with sales and distribution expenses decreasing by 3.4% due to lower freight unit costs, administrative expenses falling by 5.4% due to reduced R&D, and finance costs significantly decreasing by 17.7% due to optimized debt structure and lower financing rates Key Expense Item Changes (Year-on-Year) | Expense Item | H1 2025 (CNY Thousand) | Change | | :--- | :--- | :--- | | Sales and Distribution Expenses | 354,125 | ▼ 3.4% | | Administrative Expenses | 2,321,954 | ▼ 5.4% | | Finance Costs | 1,284,152 | ▼ 17.7% | [Liquidity, Financial Resources and Capital Structure](index=22&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of period-end, cash and cash equivalents increased to CNY 48.74 billion, with strong net cash inflow from operating activities at CNY 22.31 billion, while capital expenditures surged 77.9% to CNY 9.89 billion, and the asset-liability ratio slightly rose to 49.1% with optimized debt structure - Net cash inflow from operating activities was approximately **CNY 22.31 billion**, with cash and cash equivalents increasing by **8.9%** from the beginning of the year to **CNY 48.74 billion**[50](index=50&type=chunk)[51](index=51&type=chunk) - Capital expenditures were approximately **CNY 9.89 billion**, a **77.9%** year-on-year increase, primarily for projects such as the Yunnan Green Aluminum Innovation Industrial Park, lightweight materials base, and new energy initiatives[51](index=51&type=chunk) - The asset-liability ratio was approximately **49.1%**, a slight increase from **48.2%** at the beginning of the year, with total liabilities of approximately **CNY 112.14 billion**[57](index=57&type=chunk) - Debt is primarily denominated in RMB, accounting for approximately **79.1%** of total debt; foreign currency debt accounts for approximately **20.9%**[59](index=59&type=chunk) [Outlook](index=27&type=section&id=Outlook) Looking ahead, despite global economic challenges, China's economy shows strong resilience, and the Group will focus on high-quality aluminum industry development, driven by technological innovation and green transformation, to break through in high-end aluminum alloy materials, deepen applications in new strategic areas, accelerate digitalization, and optimize global industrial layout for sustainable value creation - The company will prioritize technological innovation and green transformation as core drivers, focusing on breakthroughs in **high-end aluminum alloy material research and development**[67](index=67&type=chunk) - Accelerate digital and intelligent transformation and upgrading, establish industry-leading benchmarks, and enhance the supply chain's independent and controllable capabilities[67](index=67&type=chunk) - Optimize global industrial layout, build a more resilient supply chain system, and create sustainable value for investors[67](index=67&type=chunk) [Other Company Information and Disclosures](index=26&type=section&id=Other%20Company%20Information%20and%20Disclosures) This section provides additional company information and disclosures, including details on share repurchases, debt instruments, and corporate governance practices [Share Repurchases](index=31&type=section&id=Share%20Repurchases) For the six months ended June 30, 2025, the company repurchased and cancelled 187.23 million shares for approximately HKD 2.6 billion, reflecting the Board's confidence in the company's long-term strategy and growth, with one repurchase tranche synchronized with convertible bond issuance Share Repurchase Details for H1 2025 | Month of Repurchase | Number of Shares | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | January 2025 | 11,294,000 | 134,428,179.50 | | February 2025 | 355,500 | 4,544,055.90 | | March 2025 | 45,230,500 | 693,738,605.60 | | April 2025 | 88,928,000 | 1,201,466,599.10 | | May 2025 | 41,421,500 | 577,322,388.10 | | **Total** | **187,229,500** | **2,611,499,828.20** | - The Board believes that the share repurchases reflect confidence in the company's long-term strategy and growth, and are in the overall best interests of the company and its shareholders[77](index=77&type=chunk) [Debt Instruments](index=32&type=section&id=Debt%20Instruments) The company adjusted the conversion price of its 2021 convertible bonds to HKD 5.68 per share due to dividends, issued new USD 300 million convertible bonds due 2030 with a 1.50% coupon, and actively managed its debt portfolio by issuing USD 600 million in senior unsecured notes and redeeming USD 300 million in maturing notes - Due to the declaration of the **2024** final dividend, the conversion price of the **2021** convertible bonds was adjusted from **HKD 6.14** per share to **HKD 5.68** per share[83](index=83&type=chunk) - In March **2025**, convertible bonds with a total principal amount of **USD 300 million**, maturing in **2030**, and bearing an interest rate of **1.50%** were issued[85](index=85&type=chunk) - During the period, two tranches of senior unsecured notes totaling **USD 600 million** were issued, and a **USD 300 million** maturing note was fully redeemed[87](index=87&type=chunk)[91](index=91&type=chunk) [Corporate Governance](index=31&type=section&id=Corporate%20Governance) The Audit Committee reviewed the interim results, confirming compliance with accounting standards, though a deviation exists where Mr. Zhang Bo serves as both Chairman and CEO, which the Board deems beneficial for stable business development given his extensive experience - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim results for the six months ended **June 30, 2025**[76](index=76&type=chunk) - There is a deviation from the Corporate Governance Code: the roles of Chairman and Chief Executive Officer are not segregated, both held by **Mr. Zhang Bo**[92](index=92&type=chunk) - The Board believes that having the same individual serve as Chairman and Chief Executive Officer is beneficial for the Group's continuous and stable business development, and the current Board composition ensures a balance of power[92](index=92&type=chunk)