China Hongqiao Group Ltd. · HKEX:1378
China Hongqiao — FY2023 Earnings Presentation
23 slides from China Hongqiao's earnings presentation, March 2024
Slide 1: 2023 Annual Results Announcement
2023 Annual Results Announcement March 2024
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 i
Slide 3: Agenda
Agenda 01 Industry Overview 02 Business 03 Highlights Financial Summary 04 Future Strategy
Slide 4: 2023 Global Supply and Demand of Primary Aluminum
2023 Global Supply and Demand of Primary Aluminum ≈41,660,000 tonnes 3.3% China's production volume of primary aluminum YOY ≈42,840,000 tonnes China's consumption volume 4.3% of primary aluminum YOY ≈70,460,000 tonnes 2.2% Global production volume of primary aluminum YOY ≈70,140,000 tonnes 0.9% Glob
Slide 5: 2023 Aluminum Price Trends
2023 Aluminum Price Trends Aluminum Price Trend of LME and SHFE ≈2,250 USD/tonne 16.8% SHFE 3mths(RMB/t) LME 3mths($/t) 27000 3800 Average prices of LME YOY 25000 23000 3300 ≈2,288 USD/tonne 15.7% 21000 2800 Average prices of LME YOY 19000 3-month aluminum futures 17000 2300 15000 ≈18,698 RMB/tonne
Slide 6: Primary Aluminum Consumption in China
Primary Aluminum Consumption in China 2023 China Primary Aluminum Market Breakdown Exportation of Aluminum In 2023, China accounted for approximately 59.1% of global and Aluminum Alloy primary aluminum production, and accounted for approximately 11.8% 61.1% of global primary aluminum consumption.
Slide 7: Agenda
Agenda 01 Industry 02 Overview Business 03 Highlights Financial Summary 04 Future Strategy
Slide 8: Business Highlights – Overall Strategy
Business Highlights – Overall Strategy Actively Participate in Co-Construction of Global Industrial Chain and Value Chain, New Pattern of Upstream and Downstream Integration, Implement Globalized Resources Develop Green Ecosystem Chain, Strategy Continuously Expand Aluminium Application Stabilize Ca
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 (Scope 1+2) Encompass BusinessTransformation Operational Transformation as Organizational and Im
Slide 10: Vertically Integrated Business Model
Vertically Integrated Business Model o Through our SMB joint venture develop and improve bauxite mining projects in Guinea, Africa; build a complete supply chain ranging from Guinea mines to domestic factories and integrate multimodal Bauxite transportation, and open up the "Maritime Silk Road" of t
Slide 11: Stable Feedstock From Global Suppliers
Stable Feedstock From Global Suppliers Guinea Indonesia Other Countries Maintained annual bauxite production The Well Harvest Winning alumina project in Indonesia with Adopted multi-channel strategy and expanded capacity of approximately 50Mt an annual alumina capacity of 2mn tonnes is in stab
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 reduce energy consumption stress digital empowerment Make the world-class breakt
Slide 13: Green Production
Green Production Actively lead the industry, further drive and deepen energy structure transformation 01 02 03 Relocation and construction of hydro power Commit to circular economy Fully involved in development aluminum base accelerates and recycled aluminum of lightweight industries Yunnan Hongta
Slide 14: Optimized Financial Structure
Optimized Financial Structure Expand diversified financing channels at home and abroad In 2023, Shandong Hongqiao has issued bonds and notes worth RMB10.22 billion in total, including short-term bonds, medium-term notes and green medium-term notes, at an interest rate of 4.00%-5.00%, which were ac
Slide 15: Recognition from International Institutions and Rating Agencies
Recognition from International Institutions and Rating Agencies Hang Seng Lianhe Fitch Moody’s S&P Index Global Outlook Outlook Outlook Outlook May 2022 Stable Negative Stable Positive Included as Rating HSI constituent Rating Rating Rating stock BB+ Ba2 BB- BB+ 15
Slide 16: ESG Highlights
ESG Highlights Strive to achieve carbon peaking by 2025 Endeavor to achieve net-zero carbon emissions within the scope of its business by 2055 (Scope 1+2) Honors and Awards Certification and Progress Four subsidiaries of Zouping Hongfa Aluminum the Group passed the Binzhou Hongzhan Aluminum Grou
Slide 17: Agenda
Agenda 01 Industry 02 Overview Business 03 Highlights Financial Summary 04 Future Strategy
Slide 18: Financial Summary
Financial Summary 2022 2023 Variance (RMB million) Revenue 131,699 133,624 +1.5% Gross profit 18,239 20,955 +14.9% Gross profit margin 13.8% 15.7% +1.9 pp Net profit 9,809 12,498 +27.4% Net profit attributable to shareholders 8,702 11,461 +31.7% Basic earnings per share RMB0.9358 RMB1.2095 +29.2% Ne
Slide 19: Profitability
Profitability Gross profit (RMB million) EBITDA (RMB million) Gross profit Gross profit margin EBITDA EBITDA margin 20,955 26,517 18,239 23,132 14.9% 14.6% 2022 2023 2022 2023 EBIT (RMB million) Net profit attributable to shareholders (RMB million) EBIT EBIT margin Net profit attributable to owners
Slide 20: Liquidity and Financial Position
Liquidity and Financial Position Total asset (RMB mn) Total liabilities (RMB mn) 200,320 94,064 185,742 89,436 7.8% 5.2% YOY YOY 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 Cash and cash equivalents (RMB mn) Gearing ratio (RMB mn) 31,721 48.2% 47.0% 27,385 15.8% 1.2pp YOY YOY 31 Dec 2022 31 Dec
Slide 21: Agenda
Agenda 01 Industry 02 Overview Business 03 Highlights Financial Summary 04 Future Strategy
Slide 22: Future Development Strategies
Future Development Strategies Integration of Aluminum & Electricity, Upstream-downstream Integration More Renewable Energy Use o Further promote the integration of o Further strengthen cost upstream and downstream advantages, diversify energy sectors and green transformation, 2 1 structure, and incr
Slide 23: Thank you!
f4™N. China Hongqiao Group Limited FP BR 5 Se A PRA] Thank you!