Shanghai Metal Market
ALCHA’s profits plunged in 2012
Edited by : AL CIRCLE
1 min read
According to Jiangsu ALCHA Aluminum's 2012 annual report, the company reported 93,800 mt in sales volumes last year, up 2,700 mt from the previous year. However, its operating revenues fell 6.78% YoY to RMB 1.91 billion, with profits attributable to shareholders of its listed company down to – RMB 69.25 million.
Three reasons were behind its falling revenues and profits. First, anemic recovery in global economy last year undermining consumption of home appliances including air-conditioners. Processing fees dropped RMB 500/mt on average due to intensified competition from overcapacity. Second, higher SHFE/LME aluminum price ratio squeezed margins of exports. Third, its inventories were high.
Construction on 250,000 mt/yr aluminum plate, sheet, strip and foil project of Baotou ALCHA North Aluminum, its wholly-owned subsidiary, came to an end last year. Casting & rolling machines are scheduled to enter trial production in May this year and all production lines are slated to enter trial production by the end of 2013.
Three reasons were behind its falling revenues and profits. First, anemic recovery in global economy last year undermining consumption of home appliances including air-conditioners. Processing fees dropped RMB 500/mt on average due to intensified competition from overcapacity. Second, higher SHFE/LME aluminum price ratio squeezed margins of exports. Third, its inventories were high.
Construction on 250,000 mt/yr aluminum plate, sheet, strip and foil project of Baotou ALCHA North Aluminum, its wholly-owned subsidiary, came to an end last year. Casting & rolling machines are scheduled to enter trial production in May this year and all production lines are slated to enter trial production by the end of 2013.
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