Summary of Yun Aluminum Co., Ltd. Conference Call Company Overview - **Company**: Yun Aluminum Co., Ltd. - **Period**: First half of 2025 - **Revenue**: 29.1 billion CNY - **Net Profit**: 2.768 billion CNY - **Return on Equity**: 9.8% - **Net Assets**: 30 billion CNY - **Dividend**: 3.2 CNY per 10 shares, over 40% of net profit [2][3] Key Financial Performance - **Production Volume**: Total production of 1.6132 million tons, a year-on-year increase of 15.59% [2][7] - Electrolytic ingots: approximately 680,000 tons - Recycled alloys: approximately 680,000 tons - Liquid metal sales: approximately 250,000 tons - **Profitability**: Achieved through high production, sales strategies, innovation, and cost competitiveness [3] Future Capital Expenditure Plans - **Focus Areas**: - Resource and ore supply - Improvement of electrolytic aluminum processes - Green energy projects (solar and wind) [5][22] - **Historical Spending**: Decreased from 1 billion CNY in 2022 to 700 million CNY in 2023, and less than 700 million CNY in 2024 [5] Strategic Outlook - **Electricity Pricing**: Aiming for stable and controllable electricity prices; slight cost fluctuations due to increased thermal power usage in Q2 [2][8] - **Long-term Strategy**: Commitment to electrolytic aluminum and its integration, avoiding short-term profit-driven changes [6] - **International Expansion**: Considering electrolytic aluminum projects in Southeast Asia, contingent on resource availability, power security, and low political risk [2][23] Market Conditions - **Raw Material Prices**: Challenges from rising prices of alumina and anodes, but managed through strategic measures [3] - **Alumina Market**: Supply expected to remain stable in the second half of the year, with potential price fluctuations depending on resource availability [14][15] Additional Insights - **Investor Relations**: Continuous commitment to returning value to investors based on profit improvements [4][21] - **Resource Development**: Potential plans for alumina resource development depending on conditions, with good prospects in Yunnan province [16] - **Electricity Supply**: Yun Aluminum accounts for approximately 20% of industrial electricity consumption in Yunnan, with a stable supply outlook [8] This summary encapsulates the key points from the conference call, highlighting the company's financial performance, strategic plans, and market conditions.

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core Views - If the opening price of AD2511 is below 19,000 yuan/ton, go long on the AD2511 contract and short on the AL2511 contract; if it is above 19,600 yuan/ton, short the AD2511 contract unilaterally [4]. - The absolute price of aluminum alloy is expected to be poor, but it needs to be evaluated against the opening price. The relative price of aluminum alloy is currently at a low level. The supply of scrap aluminum will continue to be tight, and the fundamentals of aluminum alloy are weaker than those of electrolytic aluminum [5]. 3. Summary by Directory Background: Current Node Aluminum Price Further Upside is Limited - The profit of the electrolytic aluminum industry is 3,000 yuan/ton, at a relatively high level. The alumina price on the cost side is weak, and the inventory on the consumption side is still decreasing. However, the production of aluminum rods and aluminum strips and foils shows a marginal decline, indicating the approach of the seasonal consumption off - season. Without additional macro - disturbing factors, there is no fundamental support for further increasing the aluminum price. With low inventory, the aluminum price will mainly fluctuate with a slight downward trend and limited decline space [5]. Compared with Electrolytic Aluminum, Aluminum Alloy Fundamentals are Weaker - The operating rate of recycled alloys is only about 50%, with excess capacity, while the electrolytic aluminum operating rate is 97%, approaching the production capacity ceiling. The consumption of recycled alloys is overly concentrated in the automotive sector. Currently, the automobile production is good and vehicle lightweighting is ongoing, which boosts the consumption of aluminum alloy. In the long run, when automobile production and lightweighting development approach the bottleneck, the increase in the penetration rate of new - energy vehicles will drag down the consumption of aluminum alloy [5]. Scrap Aluminum Supply will Continue to be Tight - Forecasts show that the supply growth of domestic scrap aluminum will be limited, and the supply of old scrap aluminum may face challenges, leading to a continuous tight supply situation [18]. Smelting Profit and Spread Performance - From the analysis of recycled alloy smelting profit and ADC12 - A00 spread seasonality, the current relative price of aluminum alloy is at a low level. The Baotai quotation is 19,400 yuan/ton, and the actual spot transaction price is 19,200 yuan/ton. If the price of the aluminum alloy 2511 contract reaches 19,600 yuan/ton, the smelting losses of aluminum alloy plants will be repaired, and the hedging willingness will increase [5]. Expiring Warehouse Receipt Mode is Unfavorable for Buying Delivery - According to sample mine statistics, the output in the first quarter of 2025 was 1142,000 tons, with only a year - on - year increase of 4700 tons [28]. Contract Details Comparison - The trading unit of aluminum is 5 tons/hand, and that of aluminum alloy is 10 tons/hand. The minimum price change for both is 5 yuan/ton. The trading time, last trading day, and delivery date are similar, but there are differences in details such as trading code, delivery unit, and warehouse receipt validity period. The aluminum alloy futures will be listed for trading on June 10, 2025 [30].