China's aluminum giant Hongqiao reports 95% jump in 2024 net profit

Hong Kong-listed China Hongqiao Group, one of the world’s largest primary aluminum producers, cites higher prices and larger sales volumes of its aluminum alloy products and refined alumina for a surge in revenue and net profits last year.

Releasing its business results for the year to last December 31 on March 14, the company based in East China's Shandong province reported a revenue of approximately Yuan 156.2 billion ($21.6 billion) last year, higher by 16.9% on year, and a net profit of Yuan 22.37 billion, up by a huge 95.2% compared with 2023, it said in a statement. China Hongqiao's administrative headquarters is in Hong Kong.

Revenue derived from sales of its aluminum alloy and alumina products, two of its major products, totalled approximately Yuan 102 billion and Yuan 37.4 billion respectively in 2024, accounting for 70.8% and 19.9% of its total revenue, the company said.

During last year, China Hongqiao's average sales price for its aluminum alloy products rose by 6.6% on year to Yuan 17,550/tonne excluding the VAT while total sales of its alloys edged up by 1.5% to 5.8 million tonnes.

In parallel, the company's average sales price for its alumina products jumped by 33.6% on year to Yuan 3,420/t excluding the VAT last year while the total of tonnes sold rose by 5.3% to 10.9 million tonnes, according to its announcement.

China Hongqiao, owned by diversified textiles maker Shandong Weiqiao Pioneering Group and founded in 1994, operates primary aluminum smelters in Southwest China's Yunnan province while its main production base remains in Binzhou in Shandong. The primary smelter in Wenshan, Yunnan, has a total capacity of 2 million tonnes/year with the first phase of the smelter commissioned in December 2019.

The March 14 business report gives no data for sales of primary ingot, suggesting that much of the company's primary production is consumed internally in its alloys operation. The company also claims to be a leader in production of aluminum foil.

Meanwhile, China Hongqiao has ventures in mining bauxite in Indonesia and Guinea and has a 2 million t/y capacity alumina refinery in West Kalimantan, Indonesia, for supply to domestic smelters in Indonesia and for export worldwide including to China.

Written by Iris Pang, pangjunyu@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com