I. Business operation situation for the first half of 2025?
Answer: In the first half of 2025, the company achieved a sales volume of approximately 780,000 tons, with operating income of about 17 billion yuan, a year-on-year increase of 11%. It realized a net profit attributable to the parent company of 940 million yuan, with the net profit per ton exceeding 1,200 yuan, an increase compared to the net profit per ton in 2024 and the first quarter of 2025, demonstrating strong operational resilience. The net profit for the first half of 2025 slightly declined compared with that of the first half of 2024. This was mainly due to the significant inventory appreciation gains brought about by the increase in domestic and international aluminum prices in the second quarter of the previous year. Excluding the impact of inventory appreciation, there was still growth year-on-year. Based on past experience, the production and sales volume in the second half of the year will be better than that in the first half. It is expected that the net profit for the whole year will still increase.
Ii. Introduction to Future Dividend Policies?
Answer: To enhance the return on investment for investors, the company has formulated and disclosed the "Shareholder Dividend Return Plan for the Next Three Years (2026-2028)", committing to a dividend ratio of no less than 30% each year for the next three years. This move aims to build a solid investment safety cushion for investors, forming a dual combination of corporate strategic upgrading and investor return commitments, and actively implementing the "Improving Quality, Increasing Efficiency, and Emphasizing Returns" action plan.
Iii. What work was carried out around "transformation and upgrading" in the first half of the year?
Answer: The company has established an overall development strategy focusing on "high-end intelligent manufacturing" and "low-carbon circular economy". The layout of new energy materials has begun to enter the harvest period. Aluminum-plastic film and aluminum foil have successfully entered the supply chain of soft-pack lithium battery materials and have huge application potential in the field of solid-state battery packaging. Aluminum alloy brazed composite materials have achieved comprehensive coverage of application scenarios such as water-cooled plates for power batteries and liquid cooling systems for energy storage, and a strategic cooperation agreement has been signed with Powerway Energy. In the field of high-end intelligent manufacturing, the promotion of all-aluminum column robots has achieved initial success and has been applied in high-precision scenarios such as food and beverage, medicine and electronics. The high-end heat treatment equipment under construction by Hongsheng New Materials is targeted at the demands of automotive lightweight materials, low-altitude aircraft and aerospace military materials, which will significantly enhance the company's capacity supply in the fields of high-end aluminum materials and core components for industrial automation. In the field of low-carbon circular economy, the company actively introduces laser-induced breakdown spectroscopy fine separation production lines. Through technological innovation of "precise component identification and efficient separation of impurities and alloys", it has expanded the recycling scope of used aluminum products, achieved high-value utilization of waste aluminum, and promoted the further upgrading of the recycled aluminum industry.
Iv. How are the production and operation situations of the company's overseas subsidiaries?
Answer: In the first half of the year, the company's overseas subsidiaries were fully booked with orders and saw a significant increase in profits. The company plans to reinvest in the construction of cold finishing rolling, further expanding its overseas production capacity by 30,000 to 40,000 tons.
V. Current Market Demand and Processing Fee Situation?
Answer: This year, the price of aluminum ingots has remained at a high level with fluctuations, which is inseparable from the support of overall demand. This summer, the overall situation showed that the off-season was not sluggish. The company's sales volume remained at a high level in June and July. In terms of processing fees, some products have seen an increase, but the overall trend remains stable.
