Mission Statement, Vision, & Core Values (2026) of China Hongqiao Group Limited.

From its founding in 1994 to its rise as one of the world's largest primary aluminum producers, China Hongqiao Group Limited - headquartered in Binzhou, Shandong Province - combines an integrated model of power generation, alumina refining, smelting and finished-product manufacturing with a clear mission to optimize processes, reduce environmental impact and maximize quality; in 2022 the company reported revenue of RMB 127.49 billion while producing 6.5 million tons of aluminum, a scale that underpins its vision to lead global high-quality, sustainable aluminum production through technological innovation and strategic moves such as relocating smelting capacity to Yunnan to leverage cleaner hydropower, and its corporate ethos-integrity, innovation, responsibility, collaboration and excellence-has been publicly recognized with the 2024 Green Leadership Award as CEO Zhang Bo pushes further on ESG and operational efficiency

China Hongqiao Group Limited (1378.HK) - Intro

• Ticker: 1378.HK
• Founded: 1994
• Headquarters: Binzhou, Shandong Province
• Business model: Integrated - power generation, alumina refining, primary aluminum smelting, and fabricated products
• 2022 revenue: RMB 127.49 billion
• 2022 primary aluminum production: ~6.5 million tonnes
• CEO: Zhang Bo

• To produce aluminum at industry-leading scale and cost efficiency while progressively reducing environmental impact through cleaner energy and operational innovation.
• To deliver long-term shareholder value by integrating upstream and downstream operations and capturing margin across the aluminum value chain.

• To be a global leader in sustainable aluminum production, leveraging clean energy (notably hydropower) and advanced manufacturing to meet rising demand for low-carbon aluminum.
• To shape global aluminium supply dynamics by expanding responsible capacity and driving technology adoption across operations.

• Scale & Efficiency: Pursue economies of scale and continuous cost optimization across integrated operations.
• Environmental Responsibility: Transition smelting capacity toward lower-carbon energy sources and adopt emissions control measures.
• Innovation: Invest in process improvements, automation and technology to raise product quality and lower per-ton costs.
• Community & Compliance: Prioritize stakeholder engagement, regulatory compliance and social responsibility in host regions.

China Hongqiao has undertaken a strategic relocation of high-emission smelting capacity from coal-dependent regions to Yunnan Province to access abundant hydropower, reducing its grid-carbon intensity per tonne of aluminum. The company's environmental emphasis has been recognized externally:

• 2024: Recipient of the Asian Corporate Social Responsibility Award - Green Leadership Award.
• Capacity migration: Large-scale transfer of smelting lines to hydropower-rich regions (notably Yunnan) to lower carbon footprint.

• Continue capacity optimization to maintain cost leadership in global primary aluminum markets.
• Expand use of renewable and low-carbon energy in smelting and refining processes.
• Enhance downstream value capture via finished products and integrated supply-chain efficiencies.
• Strengthen ESG disclosures and performance to meet investor and regulatory expectations.

China Hongqiao Group Limited (1378.HK) Overview

• Optimize manufacturing processes to drive unit-cost leadership across primary aluminium, rolled products and downstream businesses.
• Minimize environmental impact by shifting smelting capacity to low-carbon power regions and deploying energy-efficient technologies.
• Maximize product quality to meet and exceed domestic and international standards, reinforcing market access and customer trust.

• Capacity scale: primary aluminium nameplate capacity in the mid-2020s is approximately 7.5 million tonnes annually, enabling economies of scale in procurement, power contracting and logistics.
• Energy transition: strategic relocation of smelting capacity to Yunnan to capitalize on abundant hydro power - operations in hydro-heavy provinces now constitute a material portion of production, with hydro-sourced electricity accounting for over 60% of output in those facilities.
• Sustainability integration: the mission has evolved from pure cost/scale focus toward explicit environmental responsibility, reflected in investments in low-carbon power, modern potline technology, and emissions monitoring systems.

• Be recognized as a global leader in sustainable aluminium production: competitive cost, low carbon intensity and high product quality across primary and downstream segments.
• Drive industry decarbonization by demonstrating large-scale relocation and technology upgrades that materially reduce CO2 per tonne of aluminium.
• Deliver durable shareholder value through disciplined capital allocation, vertical integration and market diversification.

• Operational excellence - continuous improvement in specific energy consumption (SEC), potline efficiency and yield.
• Environmental stewardship - proactive reduction of greenhouse gas (GHG) intensity and investment in cleaner energy sourcing.
• Quality & compliance - adherence to ISO and international product standards to serve export markets and premium domestic customers.
• Stakeholder accountability - transparency in reporting, community engagement in producing regions and responsible supply-chain management.

• Relocation and consolidation: concentrate smelting where clean, low-cost power is available to cut GHG intensity per tonne and strengthen margins.
• Technology upgrades: invest in higher-efficiency reduction cells, waste-heat recovery and automation to improve SEC and product consistency.
• Downstream integration: expand rolling and processed aluminium to capture upstream value and serve higher-margin end markets.
• ESG reporting & targets: enhance emissions transparency, set measurable energy/carbon intensity goals and pursue compliance with evolving international standards.

China Hongqiao Group Limited (1378.HK) - Mission Statement

• Lead global market share in primary aluminum through scale and cost efficiency.
• Deliver consistently higher-quality aluminum products across downstream segments.
• Drive decarbonization and resource efficiency across the value chain.
• Accelerate technological innovation in smelting, power integration, recycling, and process electrification.
• Create long-term stakeholder value-customers, employees, communities, and investors-through responsible growth.

• Investing in green manufacturing technologies-electricity sourcing, electrolytic process upgrades, waste heat recovery, and digital process controls-to lower per‑tonne emissions and costs.
• Expanding downstream processing and high‑value alloy capabilities to move up the value chain and enhance margins.
• Strengthening supply‑chain sustainability (raw material sourcing, recycling, and logistics optimization) to meet global OEM and infrastructure customer requirements.
• Embedding an ESG strategy with measurable targets on energy mix, emissions intensity, and transparency in disclosures to international investors and rating agencies.

• Scale advantage supports cost leadership while targeted technology upgrades enable quality and emission improvements.
• Greater emphasis on renewable power and hydropower projects reduces exposure to coal‑fired electricity price volatility and regulatory risk.
• Investment in R&D and process automation is intended to sustain competitive position as global demand shifts toward low‑carbon aluminum.

China Hongqiao Group Limited (1378.HK) - Vision Statement

• Integrity: Upholding transparency, regulatory compliance, and ethical conduct across diversified operations-from bauxite sourcing to downstream aluminium products.
• Innovation: Prioritizing advanced smelting technologies, inert anode R&D pilots, and digital process optimization to reduce energy consumption and improve yield.
• Responsibility: Embedding corporate social responsibility in capital projects, environmental remediation, and local employment programs.
• Collaboration: Building long-term partnerships across the supply chain, including energy providers, equipment suppliers, and downstream customers to secure feedstock and optimize logistics.
• Excellence: Pursuing operational excellence via continuous improvement, quality assurance, and international certification standards.

• Energy efficiency upgrades: phased replacement of legacy pots and introduction of higher-current, lower-loss technology to reduce kWh/tonne.
• Renewable and diversified power sourcing: long-term power purchase agreements and co-generation projects to buffer exposure to thermal power volatility.
• Downstream integration: expanding value-added extrusion and fabrication capacity to stabilize margins when commodity prices fluctuate.
• Environmental investment: targeted spending on tailings management, water recycling, and air emission controls-linked to measurable reductions in pollutant indices.
• Recognition and transparency: awards such as the Green Leadership Award (2024) and enhanced sustainability disclosures to investors and regulators.