Aluminum giant China Hongqiao Group Ltd. reported a 5.4% yearly increase in net profit attributable to shareholders for 2018 to about 5.41 billion Chinese yuan, mainly due to a significant fall in impairment losses.
The company restated its 2017 results to include the results of Chongqing Weiqiao.
EPS fell to 59.36 Chinese fen, from 69.52 fen a year ago. Revenue fell 7.9% to about 90.19 billion yuan largely due to lower output and sales volumes of aluminum alloy products as the company closed some production lines.
During the year, the company's aluminum product sales fell 18% to about 5.87 million tonnes, aluminum fabrication products sales rose 31.1% to 493,000 tonnes, and alumina products sales jumped 117.9% to 4.09 million tonnes.
The company said March 22 that the increase in alumina sales was mainly from shutting down the aluminum alloy production lines, which led to a corresponding increase in alumina available for sale, leading the company to expand its position in the domestic market.
China Hongqiao proposed a final dividend of 24 Hong Kong cents, a 20% rise from the 2017 payout.
In February, China Hongqiao was reportedly slowly restarting production from some of its smelting units after some government-ordered output cuts expired.