China Hongqiao 1H interim div/shr 0 HK cents

Friday, Aug 15, 2025 6:19 am ET1min read

China Hongqiao 1H interim div/shr 0 HK cents

China Hongqiao Group Ltd, a major manufacturer of aluminum products, has announced its first half (1H) interim dividend for the year ending December 31, 2025. The company has declared a dividend of 0 HK cents per share, marking a significant reduction from the previous period. This decision follows a series of financial challenges and a decline in earnings.

China Hongqiao Group operates in multiple geographical segments, with China accounting for the majority of its revenue. The company's products include molten aluminum alloy, aluminum alloy ingots, aluminum busbars, aluminum alloy processing products, and alumina products. Despite the geographical diversity, the company's financial performance has been affected by various factors, including fluctuating commodity prices and economic conditions in key markets.

The dividend reduction is a strategic move to manage the company's cash flow and maintain its financial health. This decision comes after a series of earnings misses and a decline in earnings per share (EPS). In the first half of 2025, the company reported an EPS of 0.79 HK cents, a significant drop from the 1.29 HK cents reported in the same period of the previous year.

The company's management has stated that the dividend reduction is a temporary measure and that it expects to return to a more sustainable dividend payout in the future. The company's current dividend yield stands at 4.63%, which is higher than the market average of 2.4% but lower than the top 25% of dividend payers in the Hong Kong market (6.7%).

Investors should closely monitor the company's financial performance and the market conditions that could impact its operations. The company's recent dividend reduction and earnings decline highlight the need for a cautious approach to investing in China Hongqiao Group Ltd.

References:

[1] https://www.morningstar.com/stocks/xhkg/01378/quote
[2] https://simplywall.st/stocks/hk/capital-goods/hkg-868/xinyi-glass-holdings-shares/dividend

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