Bulletin: China Hongqiao's Interim Results Are In Line With Expectations; Ratings Unaffected

SINGAPORE (S&P Global Ratings) Aug. 15, 2016--S&P Global Ratings said today that its rating on China Hongqiao Group Ltd. (BB-/Stable/--; cnBB+/--) is not affected by the company's results for the first half of 2016, given they were in line with our expectations. Hongqiao's EBITDA for the first six months of 2016 was Chinese renminbi (RMB) 8.7 billion, slightly more than half of our full-year expectation and 23.6% higher than the same period last year. The good performance is attributable to consistently low cash production costs and expanding sales volume attributed. The average selling price was 9% lower year on year during the period. However, we maintain a moderately higher selling price for full-year 2016 compared with that in 2015 because

...SINGAPORE (S&P Global Ratings) Aug. 15, 2016--S&P Global Ratings said today that its rating on China Hongqiao Group Ltd. (##-/Stable/--; cnBB+/--) is not affected by the company's results for the first half of 2016, given they were in line with our expectations. Hongqiao's EBITDA for the first six months of 2016 was Chinese renminbi (RMB) 8.7 billion, slightly more than half of our full-year expectation and 23.6% higher than the same period last year. The good performance is attributable to consistently low cash production costs and expanding sales volume attributed. The average selling price was 9% lower year on year during the period. However, we maintain a moderately higher selling price for full-year 2016 compared with that in 2015 because aluminum oversupply has eased. Curbed new supply and the shutdown of less-efficient facilities resulted in 1% year-on-year growth in production volume in China during the first six months while consumption during the period increased by 8.6% on various...

Bulletin