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%.
Industry Overview
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.
Business Review
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:
Sustainability
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.
Energy-efficiency/Energy-saving
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.
Internationalization
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.
