China Hongqiao Group (1378) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 8.0% year-over-year to RMB87.5 billion, driven by higher aluminum alloy prices and increased sales of deep-processed products.

• Net profit attributable to shareholders surged 39.2% year-over-year to RMB17.2 billion, with basic EPS up 32.0% to RMB1.734.

• Gross profit margin improved to 31.5%, reflecting product mix optimization and pricing strength.

• The group advanced its green transformation, digitalization, and international expansion, including major projects in Guinea and green aluminum initiatives.

Financial highlights

• Gross profit increased 32.3% year-over-year to RMB27.5 billion.

• EBITDA/interest coverage ratio rose to 27.2x from 17.6x, and debt/EBITDA improved to 1.1x from 1.8x.

• Total assets grew 5.6% to RMB241.2 billion, while equity rose 23.4% to RMB143.5 billion.

• Cash and cash equivalents stood at RMB46.1 billion, down 5.3% year-over-year.

• Net cash inflow from operating activities was RMB22.1 billion; net cash outflow from financing activities was RMB24.3 billion.

Outlook and guidance

• Management expects stable macroeconomic conditions in China, with continued resilience in the aluminum sector and ongoing green and digital transformation.

• The group will focus on integrating the upstream and downstream industrial chain, green development, and new energy innovation.