China Hongqiao Group Ltd. · HKEX:1378
China Hongqiao — H1 2023 Earnings Presentation
22 slides from China Hongqiao's earnings presentation, August 2023
Slide 1: 2023 Interim Results Announcement
2023 Interim Results Announcement August 2023
Slide 2: Disclaimer
This document has been prepared by China Hongqiao Group Limited (abbreviated as “China Hongqiao” or the “Company”) for the sole purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of D
Slide 3: Agenda
Agenda 01 Industry 02 03 Overview Business Highlights Financial Summary 04 Future Strategy
Slide 4: 2023 1H Global Supply and Demand of Primary Aluminum
2023 1H Global Supply and Demand of Primary Aluminum GLOBAL PRODUCTION AND CONSUMPTION OF PRIMARY ALUMINUM ≈20,230,000 tonnes China’s production volume of 3.1% primary aluminum YOY ≈20,560,000 tonnes 4.3% China’s consumption volume of YOY primary aluminum ≈34,430,000 tonnes 1.8% Global production vo
Slide 5: 2023 Aluminum Price Trends for the First Half Year
2023 Aluminum Price Trends for the First Half Year Aluminum Price Trend of LME and SHFE ≈2,329USD/tonne 24.4% Average prices of LME YOY ≈2,363USD/tonne 23.4% Average prices of LME YOY 3-month aluminum futures ≈18,509RMB/tonne 13.7% Average prices of SHFE YOY ≈18,333RMB/tonne 14.3% Average prices of
Slide 6: Primary Aluminum Consumption in China
Primary Aluminum Consumption in China Construction and infrastructure, electronic power, transportation and durable goods accounted for the highest proportion of the consumption. Aluminum consumption in these sectors accounted for 74% of the total consumption. The decline in aluminum exports con
Slide 7: Agenda
Agenda 01 Industry 02 03 Overview Business Highlights Financial Summary 04 Future Strategy
Slide 8: Business Highlights – Overall Strategy
Business Highlights – Overall Strategy Actively Participate in Co- Construction of Global Industrial New Pattern of Upstream Chain and Value Chain, and Downstream Integration, Implement Globalized Resources Development of Green Ecological Chain Strategy Optimize the Energy Structure, Strengthen Ener
Slide 9: Business Highlights – Green Commitment, Carbon Peaking and Neutrality Goals
Business Highlights – Green Commitment，Carbon Peaking and Neutrality Goals Strive to achieve carbon peaking by 2025 Endeavor to achieve net-zero carbon emissions within the scope of its business by 2055 Encompass Business Transformation Operational Transformation as Organizational and Impact Transfo
Slide 10: Vertically Integrated Business Model
Vertically Integrated Business Model o Develop and improve bauxite mining projects in Guinea, Africa; build a complete supply chain ranging from Guinea mines to domestic factories and integrate multimodal transportation, Bauxite and open up the“Maritime Silk Road” of the aluminum industry o Diversif
Slide 11: Stable Feedstock From Global Suppliers
Stable Feedstock From Global Suppliers Guinea Indonesia Australia Guinea Indonesia Other Countries The Well Harvest Winning alumina project in Indonesia Maintained annual bauxite production capacity of with an annual alumina capacity of 2mn tonnes is in stable Adopted multi-channel strategy an
Slide 12: Leading Production Technology
Leading Production Technology Sci-tech Innovation，Digital Empowerment ·Energy Saving，Ecology Priority Apply the world’s most advanced electrolysis technology, Continuously improve the level of existing technologies to stress digital empowerment reduce energy consumption Adopt non-electric pump sys
Slide 13: Green Production
Green Production Actively lead the industry, further drive and deepen energy structure transformation 01 02 03 Relocation and construction of Commit to circular economy Fully involved in development hydropower aluminum base and recycled aluminum of lightweight industries accelerates Yunnan Hongtai
Slide 14: Optimized Financial Structure
Optimized Financial Expand diversified financing channels at home and abroad Structure In the reporting period, Shandong Hongqiao has issued bonds and notes for 6 times which worth RMB4.9 billion in total, including short-term bonds, medium-term notes and green medium-term notes, at an interest ra
Slide 15: Recognition from International Institutions and Rating Agencies
Recognition from International Institutions and Rating Agencies Hang Lianhe Fitch Moody’s Seng S&P Index Global Outlook Outlook May 2022 Outlook Outlook Stable Stable Included as Stable Positive HSI constituent Rating Rating stock Rating Rating BB+ Ba2 BB- BB+ 15
Slide 16: Agenda
Agenda 01 Industry 02 03 Overview Business Highlights Financial Summary 04 Future Strategy
Slide 17: Financial Summary
Financial Summary 2022 1H 2023 1H Variance (RMB million) Revenue 68,739 65,734 - 4.4% Gross profit 14,955 5,892 - 60.6% Gross profit margin 21.8% 9.0% - 12.8 pp Net profit attributable to shareholders 7,846 2,456 - 68.7% Basic earnings per share RMB 0.850 RMB 0.259 - 69.5% Net profit margin 12.6% 4.
Slide 18: Profitability
Profitability Gross profit (RMB million) EBITDA (RMB million) Gross profit Gross profit margin EBITDA EBITDA margin 14,955 16,889 5,892 8,876 60.6% 47.4% 21.8% 2022 1H 2023 1H 2022 1H 2023 1H EBIT (RMB million) Net profit attributable to shareholders (RMB million) EBIT EBIT margin Net profit attribu
Slide 19: Liquidity and Financial Position
Liquidity and Financial Position Total asset (RMB mn) Total liabilities (RMB mn) 185,742 189,358 90,745 89,436 1.9% 1.5% YOY YOY 31 Dec 2022 30 Jun 2023 31 Dec 2022 30 Jun 2023 Cash and cash equivalents (RMB mn) Gearing ratio (RMB mn) 29,777 48.2% 47.9% 27,385 8.7% 0.3pp YOY YOY 31 Dec 2022 30 Jun 2
Slide 20: Agenda
Agenda 01 Industry 02 03 Overview Business Highlights Financial Summary 04 Future Strategy
Slide 21: Future Development Strategies
Future Development Strategies Upstream-downstream Integration of Aluminum & Electricity, Integration More Renewable Energy Use o Further promote the integration of upstream o Further strengthen cost advantages, and and downstream sectors and green diversify energy structure transformation, and boost
Slide 22: Thank you!
f4™N. China Hongqiao Group Limited FP BR 5 Se A PRA] Thank you!