中国宏桥(01378) - 2025 - 中期业绩

Performance Highlights 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 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 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 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 This section provides detailed notes to the condensed consolidated financial statements, offering further insights into specific accounts and transactions Note 4: Revenue 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 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] - 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] Note 8: Dividends 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] - The total final dividend for 2024 recognized during the period was approximately CNY 8.67 billion, representing a significant year-on-year increase[16] Note 10: Property, Plant and Equipment 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] - 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] Notes 15-16: Share Capital and Commitments 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][28] - 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] Chairman's Report 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 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][32] - Leveraging its integrated industrial chain and cost control advantages, the company achieved high profitability amidst rising aluminum prices, demonstrating strong risk resilience[33] - 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] Green Development and Technological Innovation 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] - The Binzhou Aluminum Industry Advanced Manufacturing Shandong Provincial Laboratory opened, promoting collaborative innovation across the industrial chain[36] - 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] Capital Market Performance and Outlook 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] - Successfully issued domestic bonds totaling CNY 8.1 billion and USD bonds totaling USD 600 million[38] - 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] - 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] Management Discussion and Analysis 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 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] - The average SHFE three-month aluminum price was approximately CNY 20,226/tonne, up approximately 1.9% year-on-year[40] Business and Financial Performance Analysis 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 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 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][51] - 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] - 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] - Debt is primarily denominated in RMB, accounting for approximately 79.1% of total debt; foreign currency debt accounts for approximately 20.9%[59] 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] - Accelerate digital and intelligent transformation and upgrading, establish industry-leading benchmarks, and enhance the supply chain's independent and controllable capabilities[67] - Optimize global industrial layout, build a more resilient supply chain system, and create sustainable value for investors[67] Other Company Information and Disclosures This section provides additional company information and disclosures, including details on share repurchases, debt instruments, and corporate governance practices Share Repurchases 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] Debt Instruments 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] - 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] - 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][91] Corporate Governance 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] - 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] - 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]