China Hongqiao’s net profit rose 21% in H1 2018
The world's biggest aluminium producer China Hongqiao Group announced its results for the first half of 2018. Despite lower revenues, the company reportedly witnessed a surge by 21 per cent in its net profit.
In a filing to the Hong Kong stock exchange, the company reported net income of RMB 1.8 billion ($262 million) in the first six months of this year, from RMB 1.49 billion in the previous year. Hongqiao’s revenue dropped on lower aluminium production volumes. The company reported revenue of RMB44.3 billion, down 6 percent from the first half of 2017, Reuters reported.
Hongqiao produced 3.187 million tonnes of aluminium alloy products in the first half, down 20.2 per cent year-on-year. Alumina sales increased to RMB4.77 billion in the first six months of 2018, from RMB 970.9 million in the first six months of 2017.
According to a draft plan from the Ministry of Ecology and Environment, smelters in northern Chinese cities, including Hongqiao’s base of Binzhou in Shandong province, need to cut aluminium production by 30 per cent from November during heating season.
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