China Hongqiao Group Limited, one of the world's largest aluminium producers, released the audited consolidated annual results for the Company and its subsidiaries, covering the fiscal year ending December 31, 2023.
According to Antaike's statistics, global primary aluminium output reached around 70.46 million tonnes during the year, a 2.2 per cent increase from the previous year. Global consumption also rose, reaching approximately 70.14 million tonnes, reflecting a 0.9 per cent increase.
Turning to China, primary aluminium production during the same period amounted to about 41.66 million tonnes, showing a 3.3 per cent year-on-year increase and constituting roughly 59.1 per cent of the world's total production. Meanwhile, China's primary aluminium consumption stood at approximately 42.84 million tonnes, marking a 4.3 per cent increase from the previous year and accounting for about 61.1 per cent of global consumption.
The Group’s comparative figures of revenue and net profit attributable to shareholders of the Company for the year ended 31 December 2023 and 2022 are as follows.
Source: China Hongqiao Group
In the fiscal year ending December 31, 2023, the Group recorded revenue of around RMB133,623.6 million, marking a modest year-on-year growth of approximately 1.5 per cent. This increase primarily stemmed from heightened sales volumes of the Group's aluminium alloy and alumina products, consequently driving up overall sales revenue.
Over the course of the year, the Group has been buoyed by positive sales trends in its aluminium alloy and alumina products. Notably, sales volume for aluminium alloy products saw a robust increase of approximately 5.0 per cent, reaching a significant figure of approximately 5.748 million tonnes. This positive trajectory is further underscored by the fact that the average sales price for aluminium alloy products, despite a slight decline of approximately 6.4 per cent, remained competitive at RMB16,464/tonne (excluding value-added tax).
In tandem, the Group's sales volume for alumina products increased significantly by approximately 25.0 per cent year over year, totalling approximately 10.374 million tonnes. Despite this uptick, the average sales price for alumina products slightly decreased by approximately 0.8 per cent, amounting to RMB2,560/tonne (excluding value-added tax).
However, the sales volume of aluminium fabrication products declined by approximately 4.8 per cent, reaching approximately 0.58 million tonnes. Similarly, the average sales price for aluminium fabrication products decreased by approximately 9.2 per cent to approximately RMB19,834/tonne (excluding value-added tax).
For the fiscal year ending on 31 December 2023, the Group delivered a substantial increase in net profit attributable to shareholders, surging by approximately 31.7 per cent to a remarkable total of approximately RMB11,460.6 million. This impressive growth was primarily driven by an increase in the overall gross profit of the products, a reduction in administrative expenses, and an uptick in the share of profits of associates, reflecting the Group's strong financial performance and potential for future growth.
Zhang Bo, Chairman of the Board of China Hongqiao Group, stated, "Looking forward, constraining factors will still be affecting the global economy's trend, but the huge potential of diversified markets and the ground-breaking rise of new technologies have brought unprecedented historical momentum and opportunities to the manufacturing industry."
"In this era full of transformation and challenges and when the market situation is still complicated, we will stay true to our original aspiration and mission to embrace changes, seize the initiative with courage and high morale, anchor high-quality development, accelerate the improvement of quality, efficiency, and upgrade, and comprehensively promote Hongqiao's practice of Chinese-style modernisation with high-quality development."
For the fiscal year ending December 31, 2023, the Group's revenue from aluminium alloy products totalled around RMB94,640.8 million, marking a slight decrease of about 1.6 per cent from approximately RMB96,226.9 million in the previous year. This decline primarily stems from a greater reduction in unit sales price compared to the increase in sales volume for the Group's aluminium alloy products.
On the other hand, revenue from alumina products reached approximately RMB26,557.4, reflecting a notable surge of about 24.1 per cent from around RMB21,404.7 million in the prior year's corresponding period. This uptick is mainly credited to the increased sales volume of the Group's alumina products.
Meanwhile, revenue from aluminium fabrication products amounted to approximately RMB11,500.3 million, which decreased roughly 13.5 per cent from approximately RMB13,302.3 million in the same period last year. This decline, primarily attributed to a reduction in sales volume and sales price of aluminium fabrication products, reflects current market conditions and underscores the need for strategic adjustments.
