This report does not constitute a rating action. 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 weighs on capital structure. Resilient aluminum prices underpin healthy cash flow and improved leverage, despite elevated investments. Yunnan province's unstable hydropower and lack of material alternative energy supply poses challenges for Hongqiao's capacity relocation plan and ability to achieve cost saving targets. Diversified financing channel. Exposure to volatile and cyclical prices of aluminum and raw materials. Supportive aluminum demand will underpin cash flows. Demand from applications of aluminum in China's energy transition will offset softness in some end-use markets, such as real estate and infrastructure. Resilient
