南山铝业(600219) - 2024 Q2 - 季度财报

Definitions Definitions of Common Terms This chapter defines professional terms and company entity abbreviations used in the report for better understanding - Defines the company, controlling shareholder, subsidiaries, and aluminum industry-specific terms[11] Company Profile and Key Financial Indicators Company Basic Information Provides basic company information including Chinese and English names, legal representative, registered address, and contact details - The company's full name is Shandong Nanshan Aluminum Co., Ltd., and its legal representative is Lu Zhengfeng[17] Key Financial Data and Indicators The company achieved significant performance growth during the reporting period, with net profit attributable to shareholders increasing by 66.68% and net cash flow from operating activities increasing by 93.54%, primarily due to the Indonesian alumina project's volume and price increases, recovering overseas demand, and rising aluminum ingot prices Key Accounting Data (Jan-Jun 2024) | Indicator | Current Period (RMB) | Prior Year (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 15,667,337,299.66 | 14,500,645,725.11 | 8.05 | | Net Profit Attributable to Shareholders of Listed Company | 2,188,731,634.17 | 1,313,097,721.65 | 66.68 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 2,156,989,823.43 | 1,279,262,345.70 | 68.61 | | Net Cash Flow from Operating Activities | 2,656,396,665.10 | 1,372,542,758.50 | 93.54 | Key Financial Indicators (Jan-Jun 2024) | Indicator | Current Period | Prior Year | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.19 | 0.11 | 72.73% | | Weighted Average Return on Net Assets (%) | 4.69 | 2.94 | Increased by 1.75 percentage points | - Performance growth was mainly attributed to increased volume and price of the company's Indonesian alumina project, gradual recovery of overseas demand for aluminum products, and a year-on-year increase in aluminum ingot prices during the reporting period[25] Non-recurring Gains and Losses Non-recurring gains and losses totaled RMB 31.74 million during the reporting period, primarily from government subsidies Details of Non-recurring Gains and Losses | Non-recurring Gain/Loss Item | Amount (RMB) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 85,976.32 | | Government Subsidies Recognized in Current Profit and Loss | 34,940,379.53 | | Other Non-operating Income and Expenses | 3,689,328.82 | | Less: Income Tax Impact | 6,475,542.83 | | Less: Impact on Minority Interests (After Tax) | 1,087,168.12 | | Total | 31,741,810.74 | Management Discussion and Analysis Business Overview and Operating Model The company possesses a complete industrial chain from thermal power and alumina to aluminum processing and recycling, with products widely used in aviation, automotive, and packaging, adhering to high-end and green development by expanding through overseas layouts and recycled aluminum projects - The company has formed a complete aluminum processing industrial chain from thermal power, alumina, electrolytic aluminum, casting, aluminum profiles/hot rolling-cold rolling-foil rolling, to scrap aluminum recycling (reutilization)[32] - The company focuses on developing its overseas Indonesian industrial park (with 2 million tons of alumina already in operation and planned new capacity and electrolytic aluminum projects) and domestic recycled aluminum upgrading projects[33] Core Competencies The company's core competencies stem from its integrated industrial chain's cost advantages, technical barriers in high-end products, global layout, green circular economy model, and efficient management mechanisms - Adheres to a "high-end strategy + integrated industrial chain" development path, steadily progressing in high-end manufacturing[35] - Driven by technological innovation, continuously increases R&D investment in deep processing and lightweighting, and deepens industry-university-research integration[36] - Promotes the Indonesian Bintan Island alumina project, leveraging its resources and geographical advantages to expand overseas aluminum industrial chain layout[37] Discussion and Analysis of Operations In the first half of 2024, the company's performance grew steadily due to rising domestic and international alumina and primary aluminum prices, with high-value-added products contributing significantly to gross profit, while actively advancing key ongoing projects to solidify future growth - In H1 2024, the average price of overseas alumina market was approximately $403/ton, a YoY increase of about 14%; the average domestic primary aluminum price was approximately RMB 19,779/ton, a YoY increase of about 7%[45][46] - Sales of high-end products (automotive plates, aerospace plates, etc.) accounted for approximately 14% of the company's total aluminum product sales, and their gross profit accounted for approximately 25% of total aluminum product gross profit[47] - The company steadily advances several key ongoing projects, including high-end lightweight aluminum plate and strip projects, the first phase of the Indonesian electrolytic aluminum project, and the Indonesian 2 million tons alumina expansion project[56][58][59] Analysis of Key Operating Data During the reporting period, operating revenue increased by 8.05% and net profit attributable to shareholders grew by 66.68%, with operating cash flow increasing due to higher revenue, while investing and financing cash outflows rose due to prior year asset disposals, current period dividend payments, and loan compression Analysis Table of Financial Statement Items Changes | Item | Current Period (RMB) | Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 15,667,337,299.66 | 14,500,645,725.11 | 8.05 | | Net Cash Flow from Operating Activities | 2,656,396,665.10 | 1,372,542,758.50 | 93.54 | | Net Cash Flow from Investing Activities | -851,034,535.00 | -267,457,494.28 | -218.19 | | Net Cash Flow from Financing Activities | -3,334,722,601.52 | -847,150,097.31 | -293.64 | - Net cash flow from operating activities increased by 93.54% year-on-year, mainly due to a significant increase in operating revenue and corresponding cash receipts in the current period[60] - Net cash outflow from financing activities increased by 293.64% year-on-year, mainly due to the company's ample cash flow for dividend payments, reduced loan amounts, and increased loan collateral[60] Analysis of Assets and Liabilities At period-end, total assets were RMB 67.827 billion, a slight decrease of 1.44% from prior year-end, with increases in accounts receivable and prepayments, a decrease in notes receivable, and a 63.62% increase in long-term equity investments due to an LNG project acquisition, while overseas assets constituted 21.02% of total assets Assets and Liabilities Status (vs. end of prior year) | Item Name | Amount at Period End (RMB) | Change from Prior Year End (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Notes Receivable | 528,329,159.14 | -50.59 | Increase in bank acceptance bill discounting for goods payment | | Accounts Receivable | 4,320,339,949.73 | 33.80 | Reduced overseas factoring business, increased goods sales | | Long-term Equity Investments | 1,099,665,982.23 | 63.62 | Investment payment for LNG project acquisition | | Construction in Progress | 965,682,313.12 | 41.42 | New Indonesian alumina 2 million tons construction project | - Overseas assets reached RMB 14.258 billion, accounting for 21.02% of total assets[64] Analysis of Investment Status During the reporting period, the company made a significant external equity investment, acquiring 40% equity in State Pipe Network Group Nanshan (Shandong) Natural Gas Co., Ltd. for RMB 773 million, with RMB 387 million already paid - The company disclosed on February 29, 2024, the acquisition of 40% equity in State Pipe Network Group Nanshan (Shandong) Natural Gas Co., Ltd. for RMB 773 million, with RMB 387 million paid by the end of the reporting period[67][68] Analysis of Major Holding and Participating Companies During the reporting period, Indonesian alumina subsidiary PT. BINTAN ALUMINA INDONESIA performed exceptionally, achieving a net profit of RMB 1.281 billion and significantly contributing to the company's profit, while other key subsidiaries also remained profitable Financial Summary of Major Holding and Participating Companies (Unit: RMB 10,000) | Company Name | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | | Longkou Nanshan Aluminum Rolling New Material Co., Ltd. | 523,587.03 | 801,390.21 | 5,002.40 | | Longkou Donghai Alumina Co., Ltd. | 364,811.74 | 201,986.14 | 2,668.75 | | PT.BINTAN ALUMINA INDONESIA | 940,699.60 | 301,862.03 | 128,117.70 | Corporate Governance Shareholder Meetings and Changes in Directors, Supervisors, and Senior Management During the reporting period, the company held two shareholder meetings, approving the annual report, profit distribution, and director re-election, with Mr. Hao Weisong resigning and Mr. Liu Qiang being elected as a new director - A total of 2 shareholder meetings were held during the reporting period, approving proposals including the 2023 annual report, profit distribution plan, and re-election of directors[74][75] - Director Hao Weisong resigned, and Liu Qiang was elected as the new director[76] Profit Distribution Plan The company's board of directors proposed a 2024 semi-annual profit distribution plan, intending to distribute a cash dividend of RMB 0.40 (tax inclusive) per 10 shares, with an estimated total distribution of RMB 468 million - The company plans to distribute a cash dividend of RMB 0.40 (tax inclusive) per 10 shares to all shareholders, with an estimated total dividend of RMB 468 million[77][78] Environmental and Social Responsibility Environmental Information As a key pollutant-discharging entity, the company strictly adheres to domestic and international environmental regulations, maintains a three-tier environmental management structure, and is ISO 14001 certified, ensuring compliance in waste treatment and avoiding environmental accidents or penalties - Company's key pollutant-discharging units, including Donghai Thermal Power Plant and Nanshan Aluminum Branch, all achieved compliance during the reporting period[83] - The company formulated and implemented the "Environmental Protection Management Measures," strictly fulfilling environmental management responsibilities in all operating locations, with no environmental accidents or penalties during the reporting period[84] Energy Saving and Emission Reduction Measures The company actively responds to the national "dual carbon" strategy by building photovoltaic projects and purchasing green certificates to reduce electricity-related carbon emissions, continuously advancing production technology upgrades to reduce direct emissions, and steadily lowering carbon emission intensity - The company actively consumes renewable energy through self-owned photovoltaic project construction and purchasing International Renewable Energy Certificates (I-REC) for thermal power replacement[92] - Continuously promotes technology upgrade projects in multiple production workshops and thermal power plants to reduce carbon emissions during production[92] Significant Matters Fulfillment of Commitments During the reporting period, the company and related parties (e.g., Nanshan Group, Yili Power) strictly fulfilled long-term commitments regarding resolving horizontal competition and reducing related-party transactions - The company's actual controller, shareholders, and related parties strictly fulfilled commitments to avoid horizontal competition and regulate related-party transactions during the reporting period[97][99] Significant Related-Party Transactions During the reporting period, daily operational related-party transactions totaled approximately RMB 2.83 billion, primarily involving procurement and sales of goods and services with related parties, in addition to the acquisition of equity in State Pipe Network Group Nanshan (Shandong) Natural Gas Co., Ltd - Total daily related-party transactions amounted to approximately RMB 2.83 billion, mainly involving procurement of electricity, steam, bauxite, port services from Nanshan Group and its subsidiaries, and sales of alumina powder to Press Metal[107] - The company's acquisition of equity in State Pipe Network Group Nanshan (Shandong) Natural Gas Co., Ltd. constitutes a related-party transaction, with industrial and commercial changes currently being processed[109] Financial Business with Related-Party Finance Company (Unit: RMB 10,000) | Business Type | Related Party | Limit/Quota | Period-End Balance/Amount Incurred | | :--- | :--- | :--- | :--- | | Deposit Business | Nanshan Group Finance Co., Ltd. | 1,800,000.00 | 1,486,158.13 | | Loan Business | Nanshan Group Finance Co., Ltd. | 1,500,000.00 | 9,500.00 | | Credit Line Business | Nanshan Group Finance Co., Ltd. | 311,800.00 | 39,914.95 | Significant Contracts and Guarantees At the end of the reporting period, all external guarantees were for subsidiaries, totaling RMB 4.881 billion, accounting for 8.95% of the company's net assets, with RMB 3.373 billion provided for subsidiaries having an asset-liability ratio exceeding 70% - At the end of the reporting period, the company's total guarantees amounted to RMB 4.88 billion, accounting for 8.95% of the company's net assets, all of which were guarantees for subsidiaries[118] - Debt guarantees provided for guaranteed parties with an asset-liability ratio exceeding 70% (European company, American company) amounted to RMB 3.37 billion[118] Share Changes and Shareholder Information Shareholder Information As of the end of the reporting period, the company had 165,208 common shareholders, with the top two shareholders, Shandong Yili Power Co., Ltd. and Nanshan Group Co., Ltd., acting in concert and holding a combined stake exceeding 33% - As of the end of the reporting period, the company had 165,208 common shareholders[122] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End | Proportion (%) | | :--- | :--- | :--- | | Shandong Yili Power Co., Ltd. | 2,581,044,590 | 22.04 | | Nanshan Group Co., Ltd. | 1,282,933,290 | 10.96 | | Hong Kong Securities Clearing Company Limited | 1,036,918,234 | 8.86 | | Nanshan Group Exchangeable Bond Pledge Account (II) | 863,780,000 | 7.38 | | China Securities Finance Corporation Limited | 589,263,806 | 5.03 | - The top two shareholders, Nanshan Group Co., Ltd. and Shandong Yili Power Co., Ltd., are parties acting in concert[125] Preferred Shares and Bonds Preferred Shares and Bonds During the reporting period, the company had no matters related to preferred shares or bonds - During the reporting period, the company had no matters related to preferred shares, corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds[130][133] Financial Report Financial Statements This section includes the company's unaudited consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2024 - The financial report includes consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[138][141][143] Basis of Financial Statement Preparation and Significant Accounting Policies The financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards, clarifying important accounting policies and estimates, and implementing "Interpretation No. 17 of Enterprise Accounting Standards" from January 1, 2024, with no financial statement impact - Financial statements are prepared on a going concern basis, in accordance with "Enterprise Accounting Standards"[153] - The company began implementing "Interpretation No. 17 of Enterprise Accounting Standards" issued by the Ministry of Finance on January 1, 2024, with no impact on the financial statements[215][216] Notes to Major Items in Consolidated Financial Statements This section details key consolidated financial statement items, including period-end cash and cash equivalents of RMB 25.059 billion (with RMB 5.340 billion restricted), accounts receivable of RMB 4.320 billion (up 33.8%), stable inventories at RMB 6.340 billion, and long-term equity investments significantly increasing to RMB 1.100 billion due to a natural gas company acquisition - Cash and cash equivalents at period-end totaled RMB 25.059 billion, with restricted funds (mainly various deposits) amounting to RMB 5.340 billion[223][224] - Accounts receivable at period-end was RMB 4.320 billion, an increase of 33.8% from the beginning of the period, with a bad debt provision balance of RMB 355 million[230][231] - Long-term equity investments at period-end were RMB 1.100 billion, an increase of 63.62% from the beginning of the period, primarily due to the current period's new investment in State Pipe Network Group Nanshan (Shandong) Natural Gas Co., Ltd[262] Related Party Relationships and Transactions The company's parent is Nanshan Group Co., Ltd., with Nanshan Village Villagers' Committee as the ultimate controlling party, and significant related-party transactions occurred during the reporting period, including extensive purchases and sales of goods, services, and financial services with Nanshan Group and its subsidiaries - The company's parent company is Nanshan Group Co., Ltd., and the ultimate controlling party is Nanshan Village Villagers' Committee[394][395] - During the reporting period, related-party transactions for purchasing goods/receiving services totaled RMB 879 million, and for selling goods/providing services totaled RMB 1.845 billion[402][403][404]