Market Performance - In the first half of 2021, the average price of alumina in the domestic market was RMB 2,399 per ton, an increase of 2.9% year-on-year[10]. - The international average FOB price of alumina was $288 per ton, up 9.09% year-on-year, with a range between $269 and $307 per ton[10]. - Global alumina production reached approximately 69.72 million tons, with a consumption of about 65.31 million tons, representing year-on-year growth of 7.2% and 2.8% respectively[11]. - China's alumina production was approximately 37.73 million tons, with consumption at about 37.44 million tons, showing year-on-year increases of 10.7% and 2.8% respectively[11]. - By the end of June 2021, the transaction price of alumina had risen to between RMB 2,480 and RMB 2,500 per ton due to rising costs of raw materials[10]. - The company reported a significant increase in user data and market activity, driven by the rising prices of electrolytic aluminum[10]. - The outlook for the second half of 2021 remains positive, with expectations of continued demand growth in the alumina market[9]. - In the first half of 2021, the average price of LME aluminum was $2,269/ton and $2,258/ton, representing year-on-year increases of 37.4% and 39.0% respectively[13]. - Domestic aluminum prices peaked at RMB 20,445/ton in early May 2021, the highest in nearly 13 years, driven by supply tightening and significant capital inflow from the US stimulus plan[14]. Financial Performance - The company achieved operating revenue of RMB 120.736 billion in the first half of 2021, a year-on-year increase of 43.55%, with total profit rising by RMB 5.639 billion to RMB 6.031 billion[17]. - The company's sales revenue for the six months ended June 30, 2021, was RMB 120.736 billion, an increase of 43.55% compared to the same period last year[26]. - The net profit attributable to the owners of the company was RMB 3.075 billion, with earnings per share of RMB 0.174[26]. - The operating revenue for the first half of 2021 reached RMB 120.736 billion, an increase of RMB 36.627 billion from RMB 84.109 billion in the same period last year, primarily driven by growth in trade revenue and rising market prices of main products[34]. - The operating cost for the first half of 2021 was RMB 107.759 billion, an increase of RMB 28.546 billion compared to RMB 79.213 billion in the same period last year, mainly due to increased trade procurement costs[35]. - The company reported a net profit of RMB 7.58 billion for the year 2020, with accumulated undistributed profits of RMB -42.3 billion according to Chinese accounting standards[127]. - The company’s accumulated undistributed profits as of June 30, 2021, were RMB -19.4 billion according to international financial reporting standards[127]. - The company reported a basic and diluted earnings per share of RMB 0.174, a turnaround from a loss of RMB 0.006 per share in the prior year[158]. Production and Operations - The production of major products such as bauxite, alumina, and electrolytic aluminum increased by 34.9%, 14.3%, and 5.5% year-on-year respectively[17]. - The production of primary aluminum was 1.96 million tons, a 5.5% increase from 1.86 million tons in the same period last year[66]. - In the first half of 2021, alumina production reached 8.25 million tons, a 14.3% increase from 7.21 million tons in the same period of 2020[66]. - The average selling price of self-produced primary aluminum for export was RMB 17,293 per ton, a significant increase of 31.2% compared to RMB 13,176 per ton in the previous year[66]. - The average selling price of self-produced alumina for export was RMB 2,495 per ton, a slight decrease of 0.04% compared to RMB 2,496 per ton in the previous year[66]. Research and Development - The company implemented a digital transformation in procurement, launching an online procurement platform that improved procurement efficiency[19]. - The company initiated 21 technology research projects focusing on key areas such as carbon neutrality and hazardous waste treatment, enhancing its innovation capabilities[20]. - Research and development expenses for the first half of 2021 amounted to RMB 659 million, an increase of RMB 287 million from RMB 372 million in the same period last year, primarily due to increased investment in high-end aluminum alloys and production process improvements[38]. - The company is focused on new product development and technological advancements to improve operational efficiency[9]. Cash Flow and Investments - The company’s cash flow reached RMB 9.467 billion, marking the best historical performance for the same period[17]. - For the six months ending June 30, 2021, the net cash inflow from operating activities was RMB 9.467 billion, an increase of RMB 3.463 billion compared to RMB 6.004 billion in the same period last year, primarily due to increased profits from main products[60]. - The net cash outflow from investing activities for the same period was RMB 5.637 billion, an increase of RMB 3.126 billion compared to RMB 2.511 billion in the previous year, mainly due to a decrease in the recovery of structured deposits[61]. - The net cash outflow from financing activities was RMB 6.318 billion, an increase of RMB 3.554 billion compared to RMB 2.764 billion in the same period last year, primarily due to increased net debt repayment[63]. - The company’s investment in property, plant, and equipment for the six months ended June 30, 2021, was RMB 788,975 thousand, a decrease from RMB 3,083,197 thousand in the same period of 2020, indicating a reduction in capital expenditures[170]. Corporate Governance and Shareholding - The company has maintained strict compliance with corporate governance regulations as per the requirements of the China Securities Regulatory Commission and the Hong Kong Stock Exchange[125]. - The total number of shareholders for A-shares and H-shares as of June 30, 2021, is 392,018[92]. - Chinalco Group and its subsidiaries collectively hold 5,474,485,019 shares, accounting for approximately 32.16% of the total issued share capital[99]. - The company has not experienced any changes in shareholding during the reporting period[88]. - The company has no external guarantees, except for guarantees to subsidiaries, with a total guarantee amount of approximately RMB 15.646 billion[100]. Future Outlook and Strategy - The company plans to expand its market presence and enhance its product offerings in response to the growing demand for alumina[10]. - The management discussed strategies for future growth, including potential mergers and acquisitions to strengthen market position[9]. - The company aims to enhance value creation capabilities and strengthen cost control and value creation ability through continuous benchmarking management[22]. - The company plans to optimize its industrial layout and energy structure while promoting green low-carbon development to achieve carbon peak and carbon neutrality goals[23]. - The company is focusing on digital transformation and the establishment of a digital factory to enhance core competitiveness and improve management models[24]. - The group expects a net cash inflow from operating activities from July 1, 2021, to June 30, 2022, with unused bank credit of approximately RMB 177,126 million as of June 30, 2021, of which about RMB 133,292 million is expected to be renewed within the next twelve months[184].
中国铝业(02600) - 2021 - 中期财报