China Hongqiao Group Limited reported solid first-half 2026 results, highlighted by double-digit growth in revenue and a sharp rebound in profitability amid firmer aluminium prices and higher value-added product sales.

Financial Performance • Revenue rose 8.0% year on year to RMB 87.51 billion. • Gross profit expanded 32.3% to RMB 27.53 billion; gross margin improved 5.8 percentage points to 31.5%. • Profit for the period increased 41.0% to RMB 19.11 billion. • Net profit attributable to shareholders climbed 39.2% to RMB 17.21 billion, lifting basic EPS by 32.0% to RMB 1.734. • Finance costs declined 13.6% to RMB 1.11 billion, reflecting lower interest-bearing debt and reduced borrowing rates.

Segment Highlights • Aluminium alloy products: Revenue advanced 14.8% to RMB 59.58 billion; gross margin surged to 38.5% (2025: 25.2%) on an 18.7% increase in average selling price to RMB 21,192 per tonne, offsetting a 3.3% drop in sales volume to 2.81 million tonnes. • Alumina: Revenue fell 22.1% to RMB 16.09 billion as average selling price slid 28.3% to RMB 2,327 per tonne; gross margin narrowed to 6.3% (2025: 28.8%). Sales volume grew 8.6% to 6.92 million tonnes. • Aluminium deep-processed products: Revenue climbed 39.7% to RMB 10.39 billion on a 23.2% increase in volume and a 13.4% higher average price; gross margin improved to 32.7% (2025: 23.3%).

Cash Flow and Balance Sheet • Operating cash inflow reached RMB 22.15 billion; free cash flow benefited from lower capital expenditure, which dropped 62.6% to RMB 3.70 billion. • Cash and cash equivalents stood at RMB 46.14 billion (-9.9% versus end-2025). Net current assets totalled RMB 58.80 billion. • Bank borrowings declined 17.4% to RMB 35.87 billion; gearing decreased to 40.5% from 42.2%. • Capital commitments were RMB 4.79 billion, alongside a performance guarantee of up to RMB 12.61 billion (US$1.78 billion) for the Simandou iron-ore project in Guinea.

Capital Actions • The company paid a 2025 final dividend of HK 165 cents per share (RMB 14.07 billion); no interim dividend was proposed. • During H1 2026, 159.31 million shares were repurchased for HK 5.29 billion and subsequently cancelled, reducing share capital. • Controlling shareholder China Hongqiao Holdings acquired an additional 41.50 million shares on the open market. • In April, China Hongqiao issued RMB 10.20 billion (US-settled) zero-coupon convertible bonds due 2027; net proceeds of US$1.47 billion are earmarked for bauxite procurement, debt refinancing, overseas projects, potential share buybacks and general corporate purposes. • Bank borrowings, medium-term notes, convertible bonds and guaranteed notes totalled RMB 67.44 billion at period-end.

Outlook and Strategy Management plans to deepen integration across its alumina-to-aluminium value chain, advance green energy initiatives, and continue debt optimisation. Ongoing projects include Yunnan’s green aluminium industrial park, lightweight material bases, and participation in Guinea’s Simandou iron-ore development.

Corporate Governance The company reported compliance with Hong Kong’s Corporate Governance Code, save for the combined roles of chairman and CEO held by Zhang Bo, citing leadership continuity and industry expertise.