Core Viewpoint - China Hongqiao Group Limited reported record-high revenue and profit for the first half of 2025, driven by increased sales prices and volumes of aluminum products and alumina, despite challenges in the real estate sector [2][3]. Financial Performance - In the first half of 2025, China Hongqiao achieved revenue of approximately 81.039 billion yuan, a year-on-year increase of 10.10%, marking the highest performance since its listing [2] - The net profit attributable to shareholders was approximately 12.361 billion yuan, up 35.02% year-on-year, with basic earnings per share of 1.31 yuan, reflecting a 36.02% increase [2] Product Sales and Pricing - The sales volume of aluminum alloy products reached approximately 2.906 million tons, a 2.40% increase year-on-year, with an average selling price rising by 2.70% to about 17,853 yuan per ton [3] - Alumina product sales were approximately 6.368 million tons, up 15.60% year-on-year, with an average selling price increasing by 10.30% to 3,243 yuan per ton [3] - Sales of aluminum alloy processing products were about 392,000 tons, a 3.50% increase year-on-year, with an average selling price rising by 2.9% to 20,615 yuan per ton [3] Industry Demand - China's aluminum consumption continued to grow in the first half of 2025, driven by sectors such as power grids, photovoltaics, and new energy vehicles, despite weakness in the real estate market [3] Raw Material Cost Management - The company has a 45-day coal reserve to mitigate the impact of short-term coal price fluctuations, and it has been increasing the proportion of green electricity in its energy mix [4] - The self-supply rate of electricity from the company's own power plants was approximately 45% in the first half of 2025, with ongoing collaborations with major power generation institutions to enhance the use of renewable energy [4][5] Green Energy Strategy - China Hongqiao is advancing its green energy strategy, focusing on a diversified and complementary new power supply model to ensure a continuous increase in the proportion of clean energy [5]

Core Viewpoint - China Hongqiao Group reported a strong performance in the first half of 2025, with significant growth in revenue, gross profit, and net profit, indicating robust operational resilience and effective risk management strategies [1][3][4]. Financial Performance - The company achieved a revenue of 81.04 billion yuan, a year-on-year increase of 10.1%, with gross profit and net profit reaching 20.805 billion yuan and 12.361 billion yuan, respectively, reflecting growth rates of 16.9% and 35% [1][4]. - The basic earnings per share were 1.314 yuan, marking a 36% increase compared to the previous year [1]. Business Segments - The three core business segments—aluminum alloy, alumina, and aluminum processing—saw revenue growth of 5.2%, 27.5%, and 6.5%, respectively, with total sales contributions of 64%, 25.5%, and 10% [3]. - Sales volumes for aluminum alloy, alumina, and aluminum processing were approximately 2.906 million tons, 6.368 million tons, and 392,000 tons, showing year-on-year increases of 2.4%, 15.6%, and 3.5% [3]. Strategic Initiatives - The company is focused on building an integrated upstream and downstream industrial chain, actively securing overseas bauxite resources, and enhancing its global cooperative model [3]. - China Hongqiao is committed to sustainable development, emphasizing low-carbon transformation and integrating advanced technologies into daily operations [3][4]. Green Energy Strategy - The company is advancing its green energy strategy by diversifying its power supply model and increasing the proportion of clean energy [4]. - A phased approach to carbon reduction is being implemented, aiming to achieve net-zero emissions in collaboration with stakeholders across the value chain [4]. Financial Stability and Market Confidence - The company successfully issued two bonds totaling 600 million USD, with a subscription rate of 12 times, and a 300 million USD convertible bond with an 8 times subscription rate and a low interest rate of 1.5% [4]. - China Hongqiao's subsidiaries received AAA credit ratings, and the company issued short-term financing bonds and medium-term notes worth 8.1 billion yuan, reflecting strong investor confidence [4]. Market Outlook - Despite uncertainties in the global economic landscape, demand for aluminum remains robust, and the company is expected to benefit from continued growth in both volume and price in the second half of the year [5]. - A new share buyback plan has been announced, aiming to repurchase at least 3 billion HKD worth of shares over the next nine months, which is anticipated to boost market confidence and drive up the company's market value [5].