Date
23 March 2017
Chief executive Zhang Bo (second from left) said the company expects growing demand for aluminum products. Photo: HKEJ
Chief executive Zhang Bo (second from left) said the company expects growing demand for aluminum products. Photo: HKEJ

China Hongqiao allots 15 bln yuan to boost output

China Hongqiao Group Ltd. (01378.HK) is setting aside up to 15 billion yuan (US$2.3 billion) this year in anticipation of growing demand for aluminum products, chief executive Zhang Bo said.

The company aims to raise capacity by 15.7 percent to 6 million tons amid rising demand from power infrastructure and environmental protection businesses, the Hong Kong Economic Journal quoted Zhang as saying.

Market players have agreed to maintain aluminum prices at 11,000 to 12,000 yuan per ton this year, Zhang said.

The company said sales grew 22.2 percent to 44.11 billion yuan last year.

Net profit, however, plunged 31.3 percent to 3.65 billion yuan amid foreign exchange losses, a fall in aluminum prices and a rise in financing and administrative costs.

China Hongqiao expects gross profit margin to remain at 20.3 percent this year.

[Chinese version 中文版]

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