Chairman Zhang Bo presents Hongqiao Group’s first semester of 2021 unaudited consolidated interim results.
In the first half of 2021 the global economic recovery momentum became stronger and China’s domestic economy continued to maintain a stable recovery. According to the statistics of the National Bureau of Statistics of China, the gross domestic product for the first half of 2021 amounted to RMB53,216.7 billion, representing a year-on-year increase of 12.7%.
From the industry perspective, in the first half of 2021, with the sustained global economic recovery momentum, the aluminum consumption recovered and grew, with the supply of primary aluminum in the PRC reaching its maximum production capacity. It is expected that real estate, automobile and infrastructure industries may continue their steady growth momentum in light of the sustained positive macroeconomic development in the PRC in the second half of the year, which will boost aluminum consumption, driving aluminum prices to surge significantly and favoring the continued development of the aluminum industry in the medium- to long-term.
According to statistics from Antaike, the global output of primary aluminum in the first half of 2021 was approximately 33.777 million tonnes, representing a year-on-year increase of approximately 5.1%; the global consumption of primary aluminum in the first half of 2021 wasapproximately 33.899 million tons, representing a year-on-year increase of approximately 9.9%. For the domestic market, the output of primary aluminum in the PRC in the first half of 2021 was approximately 19.577 million tones, representing a year-on-year increase of approximately 7.9% and accounting for approximately 58.0% of the global output of primary aluminum; the consumption of primary aluminum in the PRC in the first half of 2021 was approximately 19.899 million tonnes, representing a year-on-year increase of approximately 8.5% and accounting for approximately 58.7% of the global consumption of primary aluminum.
During the Period, the Group’s output of aluminum alloy products and aluminum fabrication products was approximately 2.801 million tons and 0.369 million tons, respectively, representing a slight increase as compared with the corresponding period last year. The comparative figures of the Group’s unaudited revenue and net profit attributable to shareholders of the Company for the six months ended 30 June 2021 and for the corresponding period of 2020 are as follows:
During the Period under Review, the Group continued to be committed to high-quality and sustainable development under the guidance of new development concepts by vigorously optimizing its energy structure, implementing industrial transformation and upgrading and maintaining positive and effective performance in green development.
In particular, the contracted production capacity of the Yunnan green aluminum innovation industrial park which, after the relocation is completed, will enable the Group to increase the proportion of its aluminum production capacity from clean energy to approximately one-third.
This project has become a role model for green development of the aluminum industry in the PRC. At the same time, the Group’s lightweight material project based on the strategy of “Three New (new infrastructure, new material and new applications) and One High (high value-added)” also continued its progress.
In the first half of 2021, adhering to its business models of “Integration of Upstream and Downstream Businesses”, “Global Integration”, and “Green Smart Integration”, the Group proactively seized the favorable opportunities to expedite the transformation and upgrading for its development through various initiatives such as actively adjusting its energy structure, optimizing its industrial layout and increasing investment in scientific research and innovation, so that the quality of development could be improved further.
During the Period, the Group’s project of standardized energy-saving production of electrolytic aluminum successfully passed the inspection for acceptance of the Standardization Administration of the PRC. The Group’s Aluminum & Power’s model of standardized electrolytic aluminum production will play a positive leading role in further enhancing energy efficiency in the industry.
In pursuing debt structure optimization, the Group continued to deleverage and completed a number of financing projects through diversified channels at the same time, further consolidating the sustainable development of the Group.
Looking forward to the second half of the year, the Group believes that with the solid development foundation and steadily increasing consumption demand for aluminum, China’s aluminum industry will maintain its positive operating momentum. However, as the global pandemic has not completely vanished, there will still be both challenges and opportunities for the aluminum industry ahead. As always, being a leading enterprise in the industry, the Group will continue to actively respond to the “Dual Carbon” goals of the PRC by proactively fulfilling the responsibility of reducing carbon emissions and firmly implementing effective initiatives for achieving the “Dual Carbon” goals. Through the implementation of relevant strategic planning projects, streamlining its systems and taking more effective measures for reducing carbon emissions, the Group will further improve its basic corporate management standard while effectively fulfilling its social responsibilities, and strive to make positive contributions to promoting the low-carbon transformation of the industry and achieving the “Dual Carbon” goals of the PRC to counter the effects of global climate change.
In addition, the Sino-German Hongqiao Scholz Circular Economy Science & Technology Project by the Group and Germany’s Scholz China GmbH officially kicked off in May 2021. The project is a circular economy technology project focusing on the recycling of metal and resource reuse and is constructed for both domestic and international circular economy industrial parks with the highest standards. It is also one of the specific initiatives that the Group has taken for proactively implementing the low-carbon transformation and facilitating the PRC to achieve the goals of “reaching the peak of carbon emissions and achieving carbon neutrality” (the “Dual Carbon” goals) to respond to the global climate change.
As for overseas business, the Group’s bauxite mining in
Guinea continued and the construction of the phase 2 alumina project in
Indonesia was progressing smoothly.
Bonds & Investment
During the Period under Review, the Company raised funds of HK$2,324,000,000 by way of top-up placing and successfully issued US$500,000,000 6.25% senior unsecured notes due 2024 and US$300,000,000 5.25% convertible bonds due 2026, and Shandong New Material Co., Ltd (“Shandong Hongqiao”), a subsidiary of the Company, also successfully completed the issuance of corporate bonds with a principal amount of RMB1,000,000,000 during the Period, all of which were heavily oversubscribed by domestic and foreign investors, fully reflecting the fact that the Group is highly recognized by the capital market.
For the six months ended 30 June 2021, net profit attributable to shareholders of the Company amounted to approximately RMB8,142,519,000, representing an increase of approximately 187.5% from approximately RMB2,831,849,000 for the corresponding period last year.
During the Period, basic earnings per share of the Company were approximately RMB0.903 (the corresponding period of 2020: approximately RMB0.330).
On behalf of the Board, Hongqiao’s Chaiman, Mr. Zhang Bo
would like to extend his sincere gratitude to the Group’s management team and
employees for their efforts and dedication in the first half of 2021, and to
our shareholders, investors and business partners for their support and trust.
Mr. Zhang Bo
Chairman of the Board
20 August 2021
Full report available here.