Overview Key strengths Key risks Sound market position as one of the world's largest aluminum producers with an integrated business model. Heavy reliance on short-term financing. Supportive industry environment, with aluminum use in the energy transition industries. Yunnan province's unstable hydropower and lack of material alternative energy supply posing challenges for Hongqiao's capacity relocation plan and ability to achieve cost-savings targets. Relatively diversified financing channel. Exposure to volatile and cyclical prices of aluminum and raw materials. Positive supply and demand dynamics will underpin strong aluminum prices. Elevated energy prices and China's capacity cap have curtailed global supply. Meanwhile, a stabilizing economy in China and the global energy transition will prop up demand. Our base case assumes aluminum prices will rise
