China Hongqiao Group (1378) H1 2026 earnings summary

Executive summary

• Revenue 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% to RMB17.2 billion, with basic EPS up 32% to RMB1.734.

• Gross profit margin improved to 31.5% from 25.7% last year, reflecting product mix and pricing strength.

Financial highlights

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

• Operating cash inflow was RMB22.1 billion; cash and cash equivalents stood at RMB46.1 billion at period end.

• Total liabilities decreased to RMB97.7 billion, with a gearing ratio of 40.5%, down from 42.2% at year-end 2025.

• Capital expenditure was RMB3.7 billion, mainly for green aluminum and new energy projects.

Outlook and guidance

• Management expects stable domestic macroeconomic conditions and continued resilience in the aluminum market.

• Strategic focus remains on full-chain integration, green development, and new energy innovation.