CHALCO(SH:601600)2022-03-22 16:00Financial Performance - The net profit of the parent company for 2021 was RMB 2,546,421 thousand, while the consolidated net profit attributable to shareholders was RMB 5,079,562 thousand[3]. - The company plans to distribute a cash dividend of RMB 0.32 per 10 shares, totaling approximately RMB 544,726 thousand, which accounts for 10.72% of the consolidated net profit for 2021[3]. - The company will allocate 10% of the parent company's net profit, amounting to RMB 254,642 thousand, to statutory reserves[3]. - The audit report issued by PwC Zhong Tian is a standard unqualified opinion[3]. - In 2021, the company's operating revenue reached RMB 269.75 billion, a 45.03% increase compared to RMB 185.99 billion in 2020[17]. - The net profit attributable to shareholders was RMB 5.08 billion, representing a significant increase of 564.60% from RMB 764.31 million in the previous year[17]. - The net cash flow from operating activities was RMB 28.31 billion, up 89.28% from RMB 14.96 billion in 2020[17]. - The basic earnings per share rose to RMB 0.286, an increase of 853.33% compared to RMB 0.030 in 2020[18]. - The weighted average return on equity increased to 9.28%, up 7.88 percentage points from 1.40% in the previous year[18]. - The company's total assets at the end of 2021 were RMB 192.38 billion, a slight decrease of 1.37% from RMB 195.04 billion in 2020[17]. - The net assets attributable to shareholders increased to RMB 57.26 billion, a growth of 5.17% from RMB 54.45 billion in 2020[17]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching RMB 7.03 billion, up 1,586.93% from RMB 416.73 million in 2020[17]. Revenue and Cost Analysis - The total operating revenue for 2021 reached CNY 269.7 billion, up CNY 83.7 billion or 44.93% from CNY 186 billion in the previous year, mainly driven by rising prices of alumina and electrolytic aluminum[45]. - Operating costs for 2021 amounted to CNY 241.6 billion, an increase of CNY 69.8 billion or 40.56% from CNY 171.8 billion, primarily due to rising raw material prices[46]. - The aluminum industry segment generated revenue of 266.365 billion RMB, with a gross margin of 10.55%, reflecting a 3.13 percentage point increase year-over-year[88]. - The alumina segment's operating revenue for 2021 was CNY 56.546 billion, an increase of CNY 14.168 billion or 33.43% from CNY 42.378 billion, driven by increased production from new projects and rising alumina prices[64]. - The primary aluminum segment's operating revenue for 2021 was CNY 72.644 billion, an increase of CNY 20.755 billion or 39.94% from CNY 51.889 billion, primarily due to rising primary aluminum prices[65]. Market and Industry Trends - The global aluminum production reached approximately 67.78 million tons in 2021, with a consumption of about 69.15 million tons, marking a year-on-year growth of 3.8% and 9.1% respectively[33]. - The average price of alumina in China for 2021 was ¥2,798 per ton, an increase of 19.7% compared to 2020, with the highest price reaching ¥4,101 per ton[28]. - The international average price of alumina in 2021 was $331 per ton, which represents a 21.8% increase from the previous year[27]. - The average price of LME aluminum in 2021 was approximately USD 2,480 per ton, representing a 45.5% increase compared to 2020[30]. - The demand for aluminum is expected to remain stable, driven by growth in sectors such as new energy, electronics, and lightweight automotive applications[120]. Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and invest in new technologies and products to drive future growth[17]. - The company is focused on enhancing its operational efficiency and exploring potential mergers and acquisitions to strengthen its market position[17]. - The company aims to enhance its global competitiveness and become a world-class aluminum company, with the highest alumina production capacity globally and the second-highest primary aluminum production capacity[75]. - The company is committed to technological innovation and green development, establishing a green metallurgy research institute to focus on energy-saving and emission-reduction technologies[80]. - The company plans to enhance production efficiency and capacity utilization, aiming for stable and full production of electrolytic aluminum[123]. - The company is committed to achieving carbon neutrality by 2025, with significant investments in green technologies[158]. Governance and Compliance - The company has established a comprehensive corporate governance structure, ensuring clear responsibilities and effective operation among the shareholders' meeting, board of directors, supervisory board, and management team[137]. - The company’s controlling shareholder is China Aluminum Group, with the actual controller being the State-owned Assets Supervision and Administration Commission, ensuring independence in operations[139]. - The board of directors consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors, meeting legal requirements for composition[139]. - The company has implemented a performance-based salary distribution system, linking salary increases to performance outcomes[185]. - The company’s independent directors fulfilled their responsibilities and ensured the protection of minority shareholders' rights[191]. Research and Development - The company implemented 36 major R&D projects and added 35 authorized invention patents, focusing on key technological breakthroughs[38]. - Research and development expenses for 2021 were CNY 2.362 billion, an increase of CNY 928 million or 64.73% from CNY 1.434 billion, reflecting increased investment in product process optimization and development of high-end products[49]. - The total R&D investment in 2021 was 2,492.95 million yuan, representing 0.92% of operating revenue[96]. - Research and development investments increased by 20%, focusing on sustainable materials and production processes[157]. Risk Management - The company has established risk management strategies to address market fluctuations and international operational risks, including supply chain management[132][133]. - The company is facing resource acquisition risks due to low domestic bauxite resources and increased costs, prompting strategies to engage in quality mining rights transfers[135]. - The audit committee emphasized the importance of internal control and risk management, urging continuous improvement in these areas[176]. Environmental and Social Responsibility - The company is actively addressing safety and environmental risks by enhancing safety standards and promoting green development initiatives[134]. - The company improved its MSCI ESG rating from "CCC" to "B" and was ranked fourth in the "Central Enterprises ESG Pioneer 50 Index" in 2021[144]. - The company is committed to improving its ecological and environmental protection mechanisms to enhance management efficiency and compliance with environmental standards[134].