Chuangxin Industries H1’26: Profit jumps 166%, driven by aluminium prices, green power

Chuangxin Industries Holdings Limited recorded a robust financial performance in the first half (H1) of 2026, with revenue rising 32.4 per cent year-on-year to RMB 11.53 billion (USD 1.71 billion) and net profit jumping 166.1 per cent to RMB 2.32 billion (USD 344.19 million). The Chinese aluminium producer benefited from higher electrolytic aluminium selling prices, lower production costs supported by a greater share of green electricity, and reduced finance costs, while its aluminium and alumina businesses delivered stronger profitability during the six months ended June 30, 2026.

Financial snapshot: H1 2026 vs H1 2025

Comparing the financial metrics recorded in H1 2026 with those in H1 2025, the Y-o-Y improvement chart looks like this:  

• Revenue – RMB 11.53 billion (USD 1.71 billion), up 32.4 per cent Y-o-Y from RMB 8.71 billion (USD 1.29 billion)
• Gross profit – RMB 4 billion (USD 593.37 million), up 132.3 per cent Y-o-Y from RMB 1.72 billion (USD 255.45 million)
• Profit before tax – RMB 3.55 billion (USD 526.77 million), up 200.85 per cent Y-o-Y from RMB 1.18 billion (USD 174.97 million)  
• Profit for the period – to RMB 2.32 billion (USD 344.19 million), up 138.9 per cent from RMB 971.2 million (USD 144.08 million)
• Net profit attributable to shareholders – RMB 2.3 billion (USD 341.88 million), up 166.1 per cent Y-o-Y from RMB 865.9 million (USD 128.46 million)
• Basic earnings per share (EPS) – RMB 1.11 (USD 0.16), up 91.4 per cent Y-o-Y from RMB 0.58 (USD 0.9)

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The sharp expansion in profit was therefore significantly stronger than the growth in revenue, reflecting an improvement in the company's underlying margins.

Chuangxin generated approximately RMB 2.69 billion in net operating cash flow during H1 2026, which management attributed to improved capacity utilisation, value-chain cost optimisation and stronger operating profitability.

Electrolytic aluminium remained the key revenue and profit driver

Chuangxin's core business continued to centre on electrolytic aluminium and alumina, with all H1 2026 reported revenue generated in Mainland China.

Electrolytic aluminium – RMB 8.02 billion, rising 21.2 per cent Y-o-Y from RMB 6.62 billion

The electrolytic aluminium business recorded a gross profit of RMB 3.48 billion, compared with RMB 1.56 billion a year earlier. Its gross margin expanded to 43.4 per cent from 23.6 per cent, helped by higher aluminium selling prices and lower production costs.

Alumina and related products – RMB 2.52 billion, rising 34.4 per cent Y-o-Y from RMB 1.87 billion

The alumina segment’s gross profit surged to RMB 174.8 million from RMB 45.7 million, and gross margin improved to 6.9 per cent from 2.4 per cent. The company linked the improvement mainly to lower bauxite procurement prices.

Revenue from other products (including scrap and other materials, electricity and steam supply) – RMB 988.2 million, rising 366.1 per cent Y-o-Y from RMB 212 million, mainly reflecting the expansion of the company's power sales business.

This gave the group a more diversified revenue contribution, although electrolytic aluminium remained by far its largest business. The company attributed that increase mainly to higher selling prices for electrolytic aluminium.

Chuangxin's total gross margin increased to 34.7 per cent in H1 2026 from 19.8 per cent in H1 2025, indicating a gain of 14.9 percentage points.

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Aluminium prices provide another earnings tailwind

The broader aluminium price environment was favourable during the first half. LME aluminium prices remained elevated amid geopolitical tensions, tighter overseas supply, declining inventories and higher energy costs.

The average LME spot-month aluminium price reached USD3,382 per tonne in H1 2026, up 33.2 per cent Y-o-Y, while the average three-month price rose 31.9 per cent to USD3,357 per tonne. Shanghai Futures Exchange aluminium prices also increased, with the average spot-month price reaching RMB 24,254 per tonne, up 19.4 per cent.

The higher aluminium price environment directly supported Chuangxin's selling prices and was identified by the company as one of the principal reasons behind the increase in revenue and profitability.

Green power becomes a major cost advantage

A larger contribution from renewable energy was another important factor behind the H1 performance. During H1 2026, Chuangxin completed wind power installations totalling 1,040 MW and solar installations of 110 MW, taking the completion rate of its green-energy installations to approximately 66 per cent. Once the projects are fully completed, the company expects green energy to account for more than 50 per cent of its power consumption.

The company also continued upgrading its aluminium production technology, including improvements to cathodes and carbon anodes aimed at increasing current efficiency and reducing electricity consumption.

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Chuangxin reported an all-in aluminium production cost, including tax, of approximately RMB 14,500 per tonne during H1 2026, compared with an Antaike-reported industry weighted average of approximately RMB 16,105 per tonne for the same period.

The company is also expanding beyond its traditional aluminium and alumina operations. Revenue from other products, including electricity and steam, increased sharply during the period as its power sales business expanded.

Chuangxin also acquired the remaining equity in Shandong Chuangyuan New Material Technology and 100 per cent of Shandong Chuangtai New Materials Technology and Tongliao Smart Mining, with the objective of strengthening upstream raw-material supply and reducing exposure to external market fluctuations.

Saudi expansion and green aluminium strategy to shape H2

For H2 2026, a priority would be the continued construction of its Saudi project in Yanbu Industrial City, which the company says achieved all targeted milestones during H1 2026.

For H2, the company plans to “continue to fully advance project construction based on the existing construction progress,” with the focus on completing key milestones on schedule while maintaining strict oversight of construction safety and project quality.

The Saudi project is therefore likely to remain an important part of Chuangxin's international expansion strategy and its longer-term global aluminium footprint.

At the same time, the company's broader strategic direction suggests that the second half will not be focused solely on capacity expansion. Chuangxin said it will continue to pursue “green development and carbon reduction,” while expanding its global presence and improving operational efficiency through digital and intelligent transformation.

Chuangxin also aims to strengthen integration across its operations and “comprehensively enhance its ESG governance standards.”

Note: As of August 18, 2026, RMB 1 = USD 0.15