China Hongqiao Group Limited reported a robust first-half FY 2026 performance, supported by firmer aluminium prices, higher value-added product mix and tighter cost controls.

Financial Highlights • Revenue rose 8.0 % year-on-year to RMB 87.51 billion. • Gross profit expanded 32.3 % to RMB 27.53 billion, lifting gross margin to 31.5 % (+5.8 ppt). • Net profit attributable to shareholders jumped 39.2 % to RMB 17.21 billion, taking net margin to 21.8 % (+5.1 ppt). • Basic EPS increased 32.0 % to RMB 1.73.

Operational Drivers • Aluminium alloy average selling price advanced 18.7 %, offsetting a 3.3 % dip in volumes and underpinning a 14.8 % rise in alloy revenue to RMB 59.58 billion. • Deep-processed aluminium products volume climbed 23.2 % to 0.44 million tonnes; ASP gained 13.4 %, boosting segment revenue 39.7 % to RMB 10.39 billion. • Alumina revenue fell 22.1 % to RMB 16.09 billion as ASP dropped 28.3%, though production volumes rose 8.6 %.

Balance Sheet and Cash Flow • Total assets reached RMB 241.17 billion (+5.6 %), while equity increased 23.4 % to RMB 143.52 billion. • Total liabilities declined 12.9 % to RMB 97.65 billion; debt-to-capital improved to 32.0 % (-9 ppt). • Net cash generated from operations was RMB 22.15 billion; free cash flow benefited from a 62.6 % fall in capex to RMB 3.70 billion. • Cash and cash equivalents stood at RMB 46.14 billion; interest coverage strengthened to 27.2x (1H25: 17.6x).

Capital Management and Funding • The group repurchased 159.31 million shares for HKD 5.29 billion, subsequently cancelling them to enhance EPS. • Financing initiatives included RMB 10.20 billion (USD-settled) zero-coupon convertible bonds due 2027 and RMB 2.0 billion onshore sci-tech bonds issued by subsidiary Shandong Hongqiao New Materials. • Bank borrowings fell 17.4 % to RMB 35.87 billion; short-term notes of RMB 2.00 billion were fully repaid.

Strategic Progress Management highlighted continued migration toward high-value aluminium alloys, expansion of green power usage in Zhanhua’s alumina facilities, and wider deployment of AI-enabled smelting technologies. Internationally, the Guinea bauxite venture and participation in the Simandou iron ore project advanced, bolstering raw-material security.

Outlook The board expects China’s aluminium demand to remain resilient amid ongoing industrial upgrades and low-carbon policies. The company will focus on integrated supply-chain optimisation, renewable-energy adoption and disciplined capital allocation to sustain long-term growth and profitability.