China Hongqiao (01378) has impressive interim results, and net profit has increased steadily by nearly 40%. Vertical integration builds a “basic market” for sustainable management

The Zhitong Finance App learned that on August 24, China's Hongqiao (01378) held a 2026 interim results conference in Hong Kong. During the period, China Hongqiao achieved half-year revenue of about 87.51 billion yuan (RMB, same below), an increase of about 8.0% year on year; net profit attributable to the company's shareholders was about 17.21 billion yuan, an increase of about 39.2% year on year; basic profit per share was about RMB 1.734 yuan, an increase of about 32.0% over the same period last year. China Hongqiao's mid-term profit performance was impressive, with a steady increase of nearly 40%, showing resilience. At the same time, with its multi-channel financing layout and steady financial strength, China Hongqiao continued to be widely recognized by domestic and foreign investors.

During the review period, despite increased uncertainty in the external environment, the Chinese economy continued its overall steady and positive development trend, driven by the precise implementation of effective macroeconomic policies and the development of new quality productivity according to local conditions, showing strong resilience and vitality. According to data from the National Bureau of Statistics of China, in the first half of this year, China's gross domestic product was about RMB 69.6 trillion, an increase of about 4.7% over the previous year. The growth rate is in line with the expected annual economic growth target. On the industry side, driven by the shortage of supply in the global aluminum market and the continuous increase in demand, the global price center of electrolytic aluminum moved sharply higher year over year. The overall performance of China's aluminum consumer market remains steady, driven by energy storage demand, electricity investment, and downstream aluminum export volume.

During the period, sales volume of aluminum alloy products in Hongqiao in China reached about 2,811 million tons; sales volume of alumina products was about 6.917 million tons, an increase of about 8.6% over the same period last year; sales volume of aluminum alloy deep processing products was about 444,000 tons, an increase of about 23.2% over the same period last year.

For the six months ended June 30, 2026, China's Hongqiao aluminum alloy product revenue was about 59.575 billion yuan, an increase of about 14.8% over the same period last year, mainly due to the year-on-year increase in the sales price of aluminum alloy products; the revenue of alumina products was about 16.094 billion yuan; the revenue of aluminum alloy deep processing products was about 10.395 billion yuan, an increase of about 39.7% over the same period last year, mainly due to the year-on-year increase in sales volume of aluminum alloy deep processing products and the year-on-year increase in sales prices.

Furthermore, China's Hongqiao won high recognition and recognition from a number of domestic and foreign authorities during the period, based on its insistence based on its main business and comprehensive deep cultivation. In terms of comprehensive corporate strength and international influence, China's Hongqiao performed brilliantly, ranking 481st in the “2026 Top 2000 Global Companies” list by Forbes, a sharp jump of 99 places from last year, ranking 13th in the world and 3rd in China in the materials industry. At the same time, with its innovative strength and outstanding sustainable development practices throughout the industry chain, China Hongqiao once again won the “Asia Pacific Best Company 2026” award jointly by the authoritative international media “TIME” (TIME) and Statista, a world-renowned data research institution. For the second year in a row, it has been ranked among the top 500 comprehensive strengths in the Asia-Pacific region, and has also become the only aluminum company on the list.

At a time when the country's “dual carbon” strategy is being advanced in depth, green transformation is no longer an optional question, but a must-answer question for enterprises moving towards a green future. In this context, China's Hongqiao alumina production base in Zhanhua, Binzhou, explores green electricity consumption paths through direct green power supply and molten salt energy storage technology, providing a viable solution for carbon reduction in the non-ferrous industry; China's Hongqiao has broken traditional dependence on fossil energy, adopted a new consumption model where green electricity is directly supplied nearby, and put into operation the largest electric heated molten salt energy storage center in China, pioneering the “electric-heat-steam” direct conversion model. This series of system engineering has successfully transformed “green attributes” into strong market competitiveness, attracting many downstream customers to actively purchase and pay low carbon premiums for “green aluminum”. In the future, Hongqiao, China will continue to build a closed loop of the “green electricity-green aluminum” chain to lead a new path of carbon reduction in the non-ferrous industry with high-quality green intelligent manufacturing.

During the period, China's Hongqiao continued to gain wide recognition from domestic and foreign investors thanks to its multi-channel financing layout and steady financial strength. Among them, Shandong Hongqiao New Materials Co., Ltd., a subsidiary of Hongqiao in China, successfully issued science and technology innovation bonds with a total value of RMB 2 billion during the period, and the market response was enthusiastic. At the same time, China's Hongqiao grasped the market window and successfully issued 10.2 billion yuan of offshore renminbi-denominated zero-interest convertible bonds settled in US dollars, becoming a benchmark example of innovative foreign zero-interest convertible bonds in the global electrolytic aluminum industry. This bond is China's first offshore renminbi-denominated bond. It innovates a zero-interest rate model. While the financing cost is further lowered compared to the previous one, it has attracted the attention and favor of various institutional investors such as multi-parent online funds and multi-strategy funds around the world, achieving multiple oversubscriptions and a 25.3% high conversion premium.

Looking ahead to the second half of the year, the international situation is mixed. The global economy is weakening at the same time as multinational trade growth, and inflationary pressure is rising; however, the pace of transformation of old and new momentum in China's domestic industry continues to accelerate, emerging growth momentum continues to cultivate and expand, and the industrial structure is further optimized. China Hongqiao will continue the core strategic layout of integrating upstream and downstream of the entire industry chain, conform to green development, implement dual-carbon goals, seize the development opportunities of new energy innovation and manufacturing industry transformation, deal with various risks and challenges with a steady and pragmatic business attitude, consolidate the foundation of long-term development at the beginning of the “15th Five-Year Plan”, a key point after the beginning of the “15th Five-Year Plan”, and inject new momentum into the high-quality development of China's aluminum industry through steady and practical work.