China Hongqiao (01378) held its 2026 interim results conference in Hong Kong on August 24. During the period, the company recorded semi-annual revenue of approximately RMB 87.51 billion, up about 8.0% year-on-year, while net profit attributable to shareholders reached roughly RMB 17.21 billion, an increase of about 39.2% compared to the same period last year. Basic earnings per share stood at approximately RMB 1.734, up about 32.0% from a year earlier. The company's interim profitability delivered a stellar performance, with net profit climbing nearly 40%, underscoring its resilience. Meanwhile, through diversified financing strategies and solid financial strength, China Hongqiao continued to earn widespread recognition from both domestic and international investors.

During the review period, despite heightened external uncertainties, China's economy maintained a broadly stable trajectory with a trend toward innovation and quality improvement, driven by precisely implemented macro policies and the development of new quality productive forces tailored to local conditions, showcasing strong resilience and vitality. According to data from China's National Bureau of Statistics, the country's GDP reached approximately RMB 69.6 trillion in the first half of the year, up about 4.7% year-on-year, in line with the annual growth target. On the industry front, the global price center for electrolytic aluminum shifted significantly higher, supported by supply shortages and rising demand in the global aluminum market. China's aluminum consumption market remained steady overall, buoyed by energy storage demand, power investment, and a surge in downstream aluminum product exports.

During the period, China Hongqiao sold approximately 2.811 million tonnes of aluminum alloy products; alumina product sales reached about 6.917 million tonnes, up roughly 8.6% year-on-year; and aluminum alloy deep-processing product sales totaled approximately 444,000 tonnes, an increase of about 23.2% from a year earlier. For the six months ended June 30, 2026, revenue from aluminum alloy products was approximately RMB 59.575 billion, up about 14.8% year-on-year, primarily due to higher average selling prices. Alumina product revenue reached about RMB 16.094 billion, while revenue from aluminum alloy deep-processing products stood at approximately RMB 10.395 billion, up about 39.7% year-on-year, driven by both higher sales volumes and increased selling prices.

Additionally, by staying committed to its core business and pursuing all-round deep cultivation, China Hongqiao earned high praise and recognition from a range of authoritative institutions at home and abroad during the period. In terms of overall corporate strength and international influence, the company delivered an impressive performance, ranking 481st on Forbes' "2026 Global 2000" list, a significant leap of 99 places from the previous year, placing 13th globally and 3rd in China within the materials sector. Meanwhile, leveraging its full-industry-chain innovation capabilities and outstanding sustainable development practices, China Hongqiao once again received the "Best in Asia 2026" award, jointly presented by TIME magazine and global data research firm Statista, marking its second consecutive year in the Asia-Pacific Top 500 comprehensive strength rankings and making it the only aluminum company on the list.

With the national "dual carbon" strategy advancing in depth, green transformation is no longer an option but a mandatory requirement for enterprises charting a greener future. In this context, China Hongqiao's alumina production base in Zhanhua, Binzhou, has explored green power consumption pathways through direct green electricity supply and molten salt energy storage technology, offering a viable solution for carbon reduction in the non-ferrous metals industry. The company has broken away from traditional reliance on fossil fuels by adopting a new consumption model featuring nearby direct supply of green electricity, and has commissioned the nation's largest electric-heated molten salt energy storage center, pioneering an "electricity-heat-steam" direct conversion model. This systematic engineering effort has successfully transformed the "green attribute" into strong market competitiveness, attracting numerous downstream customers to proactively purchase and pay a low-carbon premium for "green aluminum." Looking ahead, China Hongqiao will continue to build a closed loop across the "green power-green aluminum" value chain, leading the non-ferrous metals industry's carbon reduction path with high-quality green manufacturing.

During the period, leveraging diversified financing channels and solid financial strength, China Hongqiao continued to gain broad recognition from domestic and international investors. Notably, its subsidiary Shandong Hongqiao New Materials Co., Ltd. successfully issued RMB 2 billion in technology innovation bonds during the period, which were met with strong market demand. At the same time, seizing the market window, China Hongqiao smoothly issued RMB 10.2 billion in offshore RMB-denominated, USD-settled zero-coupon convertible bonds, setting a benchmark as an innovative offshore zero-coupon convertible bond in the global electrolytic aluminum industry. This bond represented the company's first offshore RMB-denominated issuance, innovatively adopting a zero-coupon structure that further lowered financing costs while attracting significant attention and favor from global long-only funds, multi-strategy funds, and various other institutional investors, achieving multiple times oversubscription and a high 25.3% conversion premium.

Looking to the second half of the year, the international landscape remains complex and volatile, with global economic growth and cross-border trade both weakening and inflationary pressures rising. However, China's pace of transitioning between old and new growth drivers continues to accelerate, emerging growth momentum is being cultivated and strengthened, and the industrial structure is further optimizing. China Hongqiao will continue its core strategic layout of upstream-downstream integration across the entire industry chain, align with green development, pursue dual carbon goals, seize opportunities from the new energy revolution and manufacturing transformation, and address various risks and challenges with a steady and pragmatic approach. At this pivotal juncture marking the start of the "15th Five-Year Plan," the company aims to solidify its long-term development foundation and, through steadfast efforts, chart new paths and inject fresh momentum into the high-quality development of China's aluminum industry.