China Hongqiao Group (1378) H2 2025 earnings summary

Executive summary

• Revenue rose 4.0% year-over-year to RMB162.35 billion, driven by higher aluminum alloy prices and increased alumina and aluminum fabrication sales volumes.

• Net profit attributable to shareholders increased 1.2% to RMB22.64 billion; basic EPS was RMB2.3842, up 1.0%.

• Gross profit decreased 1.6% to RMB41.51 billion, with overall gross margin down to 25.6% from 27.0% due to lower alumina margins.

• Final dividend proposed at HK165 cents per share, up from HK161 cents in 2024.

• The group advanced green energy, digital transformation, and industrial integration, launching new projects and receiving industry accolades.

Financial highlights

• Revenue: RMB162.35 billion (+4.0% YoY); gross profit: RMB41.51 billion (-1.6% YoY).

• Net profit attributable to shareholders: RMB22.64 billion (+1.2% YoY); basic EPS: RMB2.3842.

• Cash and cash equivalents: RMB51.19 billion (+14.3% YoY); net current assets: RMB60.48 billion.

• Gearing ratio improved to 42.2% from 48.2% last year.

• Capital expenditure: RMB10.66 billion, mainly for green aluminum and new energy projects.

Outlook and guidance

• The group expects ongoing global economic uncertainty but sees opportunities in China's domestic demand and industrial upgrading.

• Plans to deepen focus on core aluminum sector, drive digital and green transformation, and align with national innovation strategies.