Hongqiao Group: Recently, the price of alumina has shown a significant decline.

Hongqiao Holdings stated in its performance briefing on May 15 that the recent decline in alumina prices is mainly due to changes in the industry supply and demand structure, the release of new production capacity, and other market factors. Price fluctuations are considered a normal part of the industry cycle. For the company, the fall in alumina prices will indeed have a certain impact on the profitability of its alumina export business, and the short-term gross margin will decrease. However, it is worth mentioning that the company has a complete industrial chain layout from alumina to electrolytic aluminum to aluminum processing. As alumina is the core raw material for electrolytic aluminum, the decline in alumina prices will reduce the raw material costs for the electrolytic aluminum sector, contributing positively to the profits of electrolytic aluminum and downstream processing stages. Overall, the pressure on profitability in the alumina business and the cost benefits in the electrolytic aluminum sector have a certain offsetting effect, which can effectively smooth out the impact of price fluctuations on the overall performance of the company and enhance profit stability.