CHUANGXIN IND Reports Mid-Year Profit Surge of 166.1% to RMB 2.3 Billion

Stock News
08/17

CHUANGXIN IND (02788) has announced its interim results for the six months ended June 30, 2026, with revenue climbing 32.4% year-on-year to RMB 11.533 billion. Profit attributable to shareholders reached RMB 2.3045 billion, a substantial 166.1% increase from the prior corresponding period. Basic earnings per share stood at RMB 1.11.

The impressive performance was driven by three key factors: higher selling prices for the company's electrolytic aluminium products which boosted revenue; an increased share of green electricity usage that lowered production costs and expanded gross margins; and proactive optimisation of the financing structure that reduced interest rates and lowered overall financial expenses.

Where to begin with the green transition

The company continues to prioritise its long-term goal of business transformation toward sustainability, aiming to establish itself as a world-class green aluminium producer. During the reporting period, construction was completed on wind power stations with a combined installed capacity of 1,040 megawatts and solar photovoltaic stations totalling 110 megawatts, bringing green energy installation completion to approximately 66%. Once these wind and solar facilities are fully operational, the share of green energy usage will surpass 50%, well above the 25% threshold set by national industrial policy. This higher proportion of green energy not only reduces production costs and improves profitability, but also enables the company's green electrolytic aluminium products to satisfy the requirements of premium domestic and international customers who demand the use of renewable energy in the aluminium smelting process.

Strengthening the upstream supply chain

Alumina serves as the most critical upstream raw material for producing electrolytic aluminium, directly impacting production continuity, cost stability and overall quality. A reliable electricity supply also underpins the company's manufacturing operations. To further consolidate its industrial chain and secure raw material stability, CHUANGXIN IND acquired the remaining equity interest in Shandong Chuangyuan New Materials Technology Co., Ltd. and a 100% stake in Tongliao Smart Mining Co., Ltd. during the reporting period. These acquisitions allow the company to exercise full control over a robust and efficient supply chain, safeguard its alumina supply, and mitigate operational risks arising from raw material price fluctuations. Additionally, the move extends the company's business footprint into upstream core energy operations, stabilises coal supply sources, and reduces reliance on external procurement. This effectively hedges against risks from sharp coal price swings, policy adjustments and other external factors, ensuring a stable and reliable electricity supply for production. Ultimately, these measures enhance overall operating efficiency, support sustainable development, and stabilise business performance.

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