Shanghai Nonferrous Metals News
China Hongqiao, a listed company of the Weiqiao Group on HKEX announced on Friday, 21st March that its 2019 net profits grew by 12.7% y-o-y to RMB6.095 bln. This result was on falling production costs despite the company’s primary output falling by 11.3% y-o-y to 5.64 mln t in 2019. The company sold 5.28 mln t of alumina in 2019, up 29% y-o-y.
The company faced a series of challenges to its business operation during 2019 including Sino-US trade conflict, tightening resources, stronger environmental policies and structural changes in the aluminium industry. In the meantime, the company’s overseas projects have been progressing smoothly. Phase II of a 1 mtpy alumina project in Indonesia (in addition to the existing 1 mtpy Aa project) is scheduled to come online by end-2020 and a bauxite and alumina project in Guinea has made significant progress. The company’s overseas projects will further improve the stability of raw material supply and should introduce new growth to the company in the long term.
The company has also announced that it will expand its recycled aluminum production lines in the future.