China Hongqiao reports robust profit growth in first half 2025

China Hongqiao Group Limited announced a substantial increase in its net profit attributable to shareholders, rising 35.0% year-on-year to approximately 12.36 bn yuan for the six months ended June 30, 2025. Revenue grew 10.1% to 81.04 bn yuan, driven by higher selling prices and increased sales volumes of aluminum alloy and alumina products. Gross profit also saw a significant jump of 16.9% to 20.81 bn yuan, with the gross profit margin expanding to 25.7%.

The company’s financial position remains solid, with cash and cash equivalents increasing by 8.9% to 48.74 bn yuan as of June 30, 2025. Finance costs decreased by 17.7% to 1.28 bn yuan, reflecting optimized debt structure and lower financing rates. Capital expenditure for the period rose significantly to 9.89 bn yuan, mainly allocated to the green aluminum innovation industrial park and lightweight material base projects.

The group continued its strategic transformation, focusing on green energy and technological innovation. The "25/55 Dual Carbon" target was proposed, aiming for carbon peaking by 2025 and carbon neutrality by 2055 from its own operations. The company also successfully issued 8.1 bn yuan in short-term financial bonds and medium-term notes, along with two US dollar-denominated bonds totaling $600 million, securing diverse funding.