November 16 news: Although aluminum prices rose in 2004, but in the first three quarters of this year, the domestic electrolytic aluminum companies have a negative growth in profits. However, Xinjiang Zhonghe Co., Ltd. performed well despite the increase in raw material prices. The company successfully shifted its strategic focus from electrolytic aluminum production to the production of high value-added aluminum products. In the first three quarters of this year, the company's profit margin was only 2.45% lower than the same period last year to 36.7%. In the first three quarters of this year, the profit rate of Jiaozuo Wanfang Group decreased by 50.55% compared to the same period of last year, while the profit margins of Shanxi Guanlu Aluminum Co., Ltd., Yunnan Aluminum Co., Ltd., Lanzhou Aluminum Co., Ltd., and Henan Zhongfu Industry Co., Ltd. also declined. About 30%. The following table shows the profitability of domestic aluminum companies in the first three quarters of the year: The company's main business profitability (%) is up and down compared with the same period of last year. Henan Jiaozuo Wanfang Group 8.95 -50.55 Guanlv Limited 12.08 -26.92 Yunnan Aluminum Industry Co., Ltd. Company 15.87 -27.96 Lanzhou Aluminum Industry Co., Ltd. 13.23 -27.86 Henan Zhongfu Industry Co., Ltd. 13.69 -31.38 Xinjiang Zhonghe Co., Ltd. 36.7 -2.45 On the other hand, in addition to Xinjiang Zhonghe Co., Ltd., in the first three quarters of this year, the above companies The earnings per share all declined. The following is the profit per share of domestic aluminum companies in the first three quarters of this year, unit: yuan. Company ROE (%) Q1 - Q3 Change year on year (%) Henan Jiaozuo Wanfang Group 4.9 -52.75 Guanlu Aluminum Co., Ltd. 6.26 -18.81 Yunnan Aluminum Industry Co., Ltd. 7.27 -4.09 Lanzhou Aluminum Industry Co., Ltd. 3.68 -59.96 Henan Zhongfu Industry Co., Ltd. 7.04 -3.03 Xinjiang Zhonghe Co., Ltd. 14.34 3.54 A spokesman for Xinjiang Zhonghe Co., Ltd. pointed out that in order to reduce the impact of the increase in cost caused by the rise in alumina prices to a lower limit, the company will The focus shifted from the production of electrolytic aluminum to the manufacture of high value-added aluminum products such as refined aluminum, electrolytic aluminum foil and aluminum electrodes. At present, most of the company's electrolytic aluminum is used for its own aluminum foil production, so the rise in raw material prices can be digested by the sales of high value-added products. At present, the company has devoted greater attention to high-tech R&D. In addition to research in its own field, the company has also been in contact with Japan's Mitsui Mining & Smelting Co., Ltd. and Sumitomo Metal Mining Co., Ltd. for technical cooperation. An official from the Jiaozuo Wanfang Group in Henan pointed out that the company’s profit fell sharply and pointed out that the company had decided to increase production of electrolytic aluminum earlier this year. However, alumina prices continued to rise, and most of the company’s alumina imports depended on imports. In addition, the increase in loan interest rates has also made the company's capital operations limited. Although in theory, as long as an enterprise produces both electrolytic aluminum and alumina, it will be able to digest the impact of rising alumina prices, but in reality, a new alumina project has greatly exceeded the company's ability to bear. For example, at present, the company's annual output of electrolytic aluminum is 200,000 tons, then at least a 400,000-ton aluminum oxide project is needed. Only in this way can the downstream production of the company be carried out normally. However, even a project with an annual output of 300,000 tons of alumina is a bit difficult for giants like Chinalco. When asked if Jiaozuo Wanfang will enter the production of high value-added aluminum products, the company officials pointed out that the company will certainly enter the production of downstream products. However, at present, the company has no such plan, because the current government is in the approval of new aluminum. The product project is quite strict, because the new aluminum product project will promote the rise of domestic electrolytic aluminum production, which is what the government does not want to see.
