Group 1: Company Overview - Tianshan Aluminum has a complete industrial chain from upstream resources to downstream processing, including bauxite, alumina, electrolytic aluminum, and supporting power generation and carbon products [2] - The company has two main aluminum production bases located in Xinjiang and Guangxi [2] Group 2: Production Capacity - In Xinjiang, Tianshan Aluminum has established an electrolytic aluminum production capacity of 1.2 million tons (out of a total of 1.4 million tons), with supporting power generation capacity of 350,000 kilowatts and 600,000 tons of anode carbon capacity [3] - The Guangxi region is planning to build a total of 2.5 million tons of alumina capacity, with the first phase already completed and the remaining 1.7 million tons under construction, expected to be operational by the end of 2021 [3] Group 3: Cost Advantages - The self-generated power supply covers approximately 90% of the electricity needs, benefiting from low coal prices in Xinjiang due to a relatively closed coal market [3] - The cost of bauxite in Guangxi is significantly lower than in Shanxi and Henan, with prices around 200 RMB per ton compared to over 400 RMB in other regions [3] - The company has built two carbon projects in Xinjiang with a total capacity of 600,000 tons, reducing the need for external purchases of anode carbon [3] Group 4: Financial Performance - The company has reduced its debt-to-asset ratio to 60% following a private placement of 1.5 billion RMB to enhance liquidity [4] - The alumina project in Guangxi is expected to follow market prices for sales, ensuring stable revenue [4] Group 5: Future Plans - Tianshan Aluminum is considering overseas expansion as a future opportunity, contingent on favorable conditions [5] - The company has not yet quantified the specific usage of high-purity aluminum in new energy vehicles, but it is primarily used in high-end applications [5]

Financial Performance - The company's operating revenue for 2021 was ¥28,744,767,071.79, an increase of 4.68% compared to ¥27,459,531,944.99 in 2020[14]. - Net profit attributable to shareholders for 2021 reached ¥3,833,042,371.93, a significant increase of 100.44% from ¥1,912,286,064.69 in 2020[14]. - The net profit after deducting non-recurring gains and losses was ¥3,694,237,735.01, up 97.73% from ¥1,868,336,279.89 in 2020[14]. - The company's total assets at the end of 2021 were ¥53,481,873,156.43, reflecting a growth of 5.71% from ¥50,592,938,061.86 at the end of 2020[15]. - Basic earnings per share for 2021 were ¥0.82, representing a 60.78% increase from ¥0.51 in 2020[15]. - The weighted average return on equity for 2021 was 18.62%, up from 13.77% in 2020[15]. - The net cash flow from operating activities for 2021 was ¥1,979,145,981.78, a decrease of 36.11% compared to ¥3,097,915,686.57 in 2020[14]. - The company reported a quarterly revenue of ¥7,834,705,682.23 in Q2 2021, with a net profit of ¥1,163,216,630.42 for the same period[17]. - The company achieved a revenue of 28.745 billion yuan, representing a year-on-year increase of 4.68%[38]. - The net profit attributable to the parent company was 3.833 billion yuan, a substantial year-on-year growth of 100.44%[38]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 2.00 RMB per 10 shares to all shareholders, based on a total of 4,651,885,415 shares[2]. - The cash dividend accounted for 100% of the profit distribution total, ensuring the protection of minority shareholders' rights[124]. - The company reported a total shareholding of 1,023,399,864 shares at the end of the reporting period[93]. - The company has no stock incentive plans or employee stock ownership plans in place during the reporting period[126]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 809.75 million CNY[108]. Operational Highlights - The company operates in the aluminum industry, producing primary aluminum through electrolysis, and focuses on high-purity aluminum products[6]. - The company has established a complete aluminum industry chain from bauxite to electrolytic aluminum, high-purity aluminum, and deep processing, enhancing its competitive edge[28]. - The company is positioned as the second-largest compliant aluminum producer in terms of single plant capacity in China as of January 2021[31]. - The company has invested in a new high-purity aluminum alloy ingot production line to extend its product offerings and increase value-added products[28]. - The company plans to upgrade its aluminum foil production lines to meet the growing demand for high-end battery foil products in the coming years[28]. Market and Industry Outlook - The demand for aluminum in the new energy vehicle sector is projected to require 368,000 tons by 2025, while the photovoltaic and wind energy sectors are expected to need 725,000 tons, indicating a growth rate of 5.62% compared to 2020[24]. - The aluminum industry is experiencing a fundamental improvement in supply-demand dynamics, with a tight balance expected to persist in the short term due to upstream energy and resource constraints[24]. - The company is focusing on expanding its market presence in emerging industries such as lightweight automotive structures and renewable energy applications[24]. - The aluminum industry faces rising costs due to energy shortages and dual control of energy consumption, impacting overall competitiveness[73]. - The company aims to achieve a production capacity target of 80,000 tons of high-purity aluminum by the end of the year, with 20,000 tons from the new high-purity aluminum project and 60,000 tons from the first phase of the high-purity aluminum project[78]. Research and Development - The company aims to promote energy-saving technology in aluminum electrolysis, targeting a reduction of 300 kWh/t-Al and an annual electricity saving of 69 million kWh[50]. - The company has developed a new process for producing aluminum prebaked anodes, achieving a primary product quality rate of over 80% and reducing energy consumption by 3 kWh/t anode[54]. - The number of R&D personnel increased to 429 in 2021, up 14.10% from 376 in 2020[55]. - R&D investment amounted to ¥519,021,416.94 in 2021, a decrease of 4.35% from ¥542,622,913.64 in 2020[56]. - The company is focusing on the development of high-purity aluminum ingots for electronic foil, with a projected annual demand gap of several tens of thousands of tons in the domestic market[52]. Environmental and Social Responsibility - The company has invested in environmental protection measures, leading to continuous improvement in production environment and reduction of environmental risks[134]. - The company completed the acceptance of projects aimed at reducing carbon emissions, including "recycling electrolytic aluminum anode carbon" and "aluminum industry solid waste harmless recycling project" in 2021[138]. - The company actively participated in social responsibility initiatives, donating a total of 15,512.36 yuan to support impoverished women and children in 2021[140]. - The company has established an environmental data disclosure platform to publicly share relevant environmental information[137]. - The company has developed emergency response plans for potential environmental incidents, enhancing its ability to respond quickly[135]. Governance and Compliance - The company emphasizes transparency and timely information disclosure, utilizing multiple platforms for investor communication[87]. - The company has established a robust internal control system and governance structure, enhancing its operational efficiency and compliance[87]. - The company maintains complete independence from its controlling shareholder in terms of business operations, personnel, assets, organization, and finance[88]. - The company has implemented a safety production management system and has not experienced any major safety incidents during the reporting period, although risks remain[82]. - The company has committed to strengthening corporate governance and ensuring that shareholders can fully exercise their rights, with independent directors performing their duties independently[150].

Financial Performance - The company's operating revenue for the first half of 2021 was approximately CNY 14.65 billion, representing a 23.83% increase compared to CNY 11.83 billion in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 reached approximately CNY 1.98 billion, a significant increase of 203.48% from CNY 653 million in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 1.93 billion, up 200.97% from CNY 642 million year-on-year[20]. - The basic earnings per share for the first half of 2021 was CNY 0.43, an increase of 126.32% compared to CNY 0.19 in the same period last year[20]. - The total comprehensive income for the first half of 2021 was CNY 1.98 billion, compared to CNY 653.92 million in the previous year, reflecting strong financial performance[148]. - The company's operating profit rose to CNY 2.55 billion, compared to CNY 785.95 million in the previous year, marking an increase of 224.5%[147]. - The total operating costs increased to CNY 12.16 billion, up 10% from CNY 11.06 billion year-on-year[145]. Assets and Liabilities - The company's total assets at the end of the reporting period were approximately CNY 51.23 billion, reflecting a 1.26% increase from CNY 50.59 billion at the end of the previous year[20]. - The net assets attributable to shareholders at the end of the reporting period were approximately CNY 20.35 billion, a 5.46% increase from CNY 19.30 billion at the end of the previous year[20]. - The company's total liabilities decreased slightly to CNY 30.88 billion from CNY 31.29 billion, a decrease of about 1.3%[139]. - Current liabilities decreased to CNY 22.60 billion from CNY 26.39 billion, a reduction of about 14.0%[139]. - Long-term borrowings rose significantly to CNY 6.72 billion, up from CNY 3.78 billion, indicating an increase of approximately 77.5%[139]. Cash Flow - The net cash flow from operating activities for the first half of 2021 was negative CNY 1.09 billion, a decline of 169.48% compared to a positive cash flow of CNY 1.57 billion in the same period last year[20]. - Operating cash inflow for the first half of 2021 was CNY 13,790,470,361.76, down from CNY 15,903,913,691.67 in the same period of 2020, representing a decrease of approximately 13.3%[155]. - Cash inflow from financing activities increased to CNY 8,352,402,174.24 in the first half of 2021, up from CNY 4,192,283,852.84 in the same period of 2020, marking an increase of approximately 99.5%[156]. - The company reported a net cash outflow of CNY 2,138,505,272.94 for the first half of 2021, contrasting with a net increase of CNY 522,904,989.62 in the same period of 2020[156]. Production and Operations - The company's aluminum production reached 572,700 tons, high-purity aluminum production was 6,800 tons, and alumina production was 450,000 tons[35]. - The production capacity of alumina increased by 32% compared to the same period last year[32]. - The company achieved a stable supply of raw materials and electricity, maintaining full-load production across all production lines[32]. - The company has built a complete aluminum industry chain, from bauxite to aluminum deep processing, enhancing its competitive advantage[36]. - The company is actively developing downstream high-purity aluminum products to enhance product value and competitiveness[36]. Environmental and Social Responsibility - The company achieved a 100% compliance rate for pollutant discharge standards during the reporting period[72]. - The company has invested in pollution prevention facilities, leading to continuous improvement in the production environment and a reduction in environmental risks[72]. - The company has established a scholarship fund of 1 million CNY to support outstanding students and assist those in financial difficulty at Shihezi University[82]. - The company has implemented a new apprenticeship training program in collaboration with local vocational colleges to enhance skill development[82]. Strategic Initiatives - The company plans to expand its market presence and product offerings, focusing on high-purity aluminum and other advanced materials to maintain long-term competitive advantages[39]. - The company is exploring potential mergers and acquisitions to enhance its competitive edge and market share[123]. - The company aims to enhance its profitability and shareholder value through these strategic initiatives and market expansions[186]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 70,263[124]. - The largest shareholder, Shihezi Jinlong Energy Industry Chain Co., Ltd., holds 19.63% of shares, totaling 913,175,412 shares[124]. - The company has issued a total of 3,888,526,637 shares, with 11.08% being unrestricted circulating shares and 88.92% being restricted circulating shares[192]. Management and Governance - The management team has over 30 years of experience in the aluminum industry, providing a solid foundation for navigating market complexities[40]. - The company has signed standardized labor contracts with all employees and pays for five types of insurance and housing fund, ensuring employee rights and benefits[84]. - The company has not engaged in any significant equity or securities investments during the reporting period[52][53].