Chuangxin Industries Posts a 33% Profit Jump as "Cost Leadership"

Despite a complex global macroeconomic environment, the company reported revenue of RMB 18.68 billion, representing a robust 23.2% year-on-year increase. Profit attributable to owners of the company surged by an impressive 32.8% to RMB 2.731 billion. Basic earnings per share rose to RMB 1.75 from RMB 1.37 in 2024. In a move that underscores its strong balance sheet and commitment to shareholder returns, the Board has proposed a final dividend of HK$ 0.77 per share.

The global aluminum landscape in 2025 was defined by extreme volatility in London Metal Exchange (LME) prices and escalating energy costs across traditional smelting hubs. Chuangxin Industries showcased notable resilience, underpinned by its fully integrated electrolytic aluminum industrial chain. The company's revenue was anchored by its core electrolytic aluminum business, which contributed RMB13.62 billion (72.92% of total), while alumina and related products added RMB4.42 billion.

Central to Chuangxin Industries' outperformance is its 100% self-sufficiency in alumina and power, the twin pillars of its strategic "cost moat." This vertically integrated footprint is anchored by a 788.1 kt/a electrolytic aluminum smelter and a dedicated captive power plant in Huolinguole, Inner Mongolia, complemented by a 1.2 million t/a alumina refinery in Binzhou, Shandong, which is strategically positioned near import ports. This tightly coordinated infrastructure allows the Group to exert precision control over core input costs. Consequently, the Group ranks as a top-tier cost leader in China, possessing a structural advantage that serves as both a defensive shield during commodity downcycles and a powerful lever for earnings elasticity during market recoveries.

The Chuangxin Industries' March 9 entry into the Hong Kong Stock Connect opens the door to mainland investors. Expected Southbound liquidity should enhance market depth and catalyze a valuation recovery. Analysts view its structural cost moat and green manufacturing leadership as a compelling, cash-flow-resilient proposition for long-term investors navigating today's high-interest-rate environment.

Looking ahead, Chuangxin Industries is focusing on green growth and global expansion.

Domestically, Chuangxin Industries is rapidly building 1,750 MW of wind and solar capacity in Inner Mongolia, aiming to source over 50% of its power from renewable sources by the end of 2026, reducing both carbon emissions and long-term energy costs.

Internationally, Chuangxin Industries' planned 500 kt/a aluminum smelting facility in Saudi Arabia will leverage Saudi Arabia's competitive energy costs and port logistics to serve regional demand and diversify its production base beyond China. By establishing a footprint abroad, Chuangxin Industries is hedging against geopolitical barriers while enhancing its global edge through competitive energy costs in the Middle East.

Chuangxin Industries is cementing its status as a world-class green aluminum leader. Its synergy of integrated efficiency and global expansion offers investors a resilient, sustainable play at the heart of the sector's high-growth future.
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