China Hongqiao Group (1378) H2 2024 earnings summary

Executive summary

• Revenue rose 16.9% year-over-year to RMB 156.17 billion, driven by higher sales prices and volumes in aluminum alloy and alumina products.

• Net profit increased 96.4% to RMB 24.55 billion, with net profit attributable to shareholders up 95.2% to RMB 22.37 billion and basic EPS nearly doubled to RMB 2.3611.

• Gross profit margin improved by 11.3 percentage points to 27.0%, with gross profit up 101.2% to RMB 42.16 billion.

• Full-year dividend per share increased 155.6% to HK 161 cents.

• Strong operational focus on vertical integration, green energy, and R&D-driven innovation.

Financial highlights

• EBITDA surged 67.8% year-over-year to RMB 44.48 billion, with EBITDA margin at 28.5%.

• EBIT increased 99.7% to RMB 38.35 billion, with EBIT margin at 24.6%.

• Cash and cash equivalents rose 41.1% to RMB 44.77 billion; net current assets at RMB 32.84 billion.

• Gearing ratio remained stable at 48.2% as of year-end.

• Capital expenditure reached RMB 12.61 billion, mainly for green aluminum, lightweight materials, and new energy projects.

Outlook and guidance

• Plans to further increase clean energy usage and green aluminum production.

• Continued focus on vertical integration, cost advantages, and global resource strategies.

• Will pursue intelligent industrial transformation and deepen integration into global markets.

• Ongoing optimization of debt maturity structure and leverage management.

• Commitment to R&D, tech innovation, and circular economy development.