On August 18, CHINAHONGQIAO (01378) held its 2025 interim results conference. The company achieved revenue of 81.04 billion yuan in the first half, representing a 10.1% year-on-year increase. Gross profit and net profit attributable to shareholders reached 20.805 billion yuan and 12.361 billion yuan respectively, up 16.9% and 35% year-on-year. The gross profit margin and net profit margin stood at 25.67% and 15.25% respectively. Basic earnings per share increased 36% to 1.314 yuan during the period.
The company's three core business segments all delivered growth. Aluminum alloy, alumina, and aluminum processing generated revenues of 51.878 billion yuan, 20.655 billion yuan, and 8.074 billion yuan respectively, representing year-on-year increases of 5.2%, 27.5%, and 6.5%. These segments accounted for 64%, 25.5%, and 10% of total sales respectively, totaling 99.5%. All three products achieved both volume and price growth, with aluminum alloy sales volume reaching approximately 2.906 million tons (up 2.4%), alumina sales volume at approximately 6.368 million tons (up 15.6%), and aluminum processing product sales volume at approximately 392,000 tons (up 3.5%).
CHINAHONGQIAO has been committed to building an integrated upstream and downstream industrial chain, proactively deploying overseas bauxite resources and establishing a globalized mutually beneficial model. The company's forward-looking comprehensive deployment combined with persistent cultivation and the synergistic advantages of its integrated industrial chain not only effectively addresses cost risks from raw material price fluctuations but also successfully achieves high profitability levels, demonstrating strong risk resistance and operational resilience.
In the first half, the company continued to focus on the aluminum industry, working to enhance industrial efficiency and further improve its complete industrial chain structure from bauxite, alumina refining, primary aluminum smelting, deep processing of aluminum materials to recycled aluminum. By accelerating the transformation of old and new growth drivers and integrating advanced technology into daily operations, the company injected new vitality for sustainable development, strengthened its "green" development characteristics, and continued to promote low-carbon transformation.
Additionally, the company advanced its green energy strategy transformation, continuously enriching the new power supply model of multi-source coexistence and multi-energy complementarity, ensuring a steady increase in clean energy proportion. Carbon reduction initiatives were launched throughout the entire process of investment, construction, production, and operations. Following a "three-step" strategy through phased implementation to ensure emission reduction targets are met, the company is working with upstream and downstream value chain partners to create a net-zero ecological alliance.
CHINAHONGQIAO maintains stable finances and diversified financing channels. During the period, it successfully issued two USD bonds totaling $600 million with subscription ratios reaching 12 times oversubscription. The company also innovatively issued a $300 million convertible bond while simultaneously conducting share buybacks, with the convertible bond achieving over 8 times oversubscription at an annual interest rate as low as 1.5%, becoming the first "convertible bond + buyback" composite financing case in the Hong Kong stock market.
With diversified financing channels and solid financial strength, the company has gained widespread trust from international investors. Its subsidiaries Shandong Hongqiao and Weiqiao Aluminum & Power both achieved AAA credit ratings and successfully issued short-term financing bills and medium-term notes totaling 8.1 billion yuan during the period, receiving positive response from investors. As of June 2025, the company held cash and cash equivalents of 48.745 billion yuan, maintaining abundant cash flow.
Looking ahead to the second half, while global economic prospects remain unclear with potential significant impacts from escalating trade barriers, policy uncertainties, and geopolitical factors, global aluminum demand continues to show steady growth despite market uncertainties. The second half is still expected to achieve both volume and price growth, with CHINAHONGQIAO, as an industry leader, positioned to be the primary beneficiary.
The company's stock price has performed strongly recently. The company has launched a new share buyback program, committing to repurchase at least HK$3 billion over the next nine months, further boosting market confidence and potentially driving continued market capitalization growth.