CHALIECO reports loss for H1 2023

China Aluminium International Engineering (CHALIECO) reported a net loss of RMB 831 million attributed to shareholders during the initial half of 2023. This starkly contrasts with a profit of RMB 124 million documented in the same period the previous year. Notably, increased charges for asset impairment primarily influenced the negative financial result.

Chalieco stands as a prominent Chinese engineering company with diverse operations encompassing engineering design and consultancy, engineering and construction contracting, as well as equipment manufacturing. This company holds the 124^th position among the world's largest construction firms, according to Engineering News-Record's 2013 ranking.

It operates as a subsidiary of the Aluminium Corporation of China (Chinalco), which holds 83 per cent of the company's shareholding. The equipment manufacturer revised its accounting estimate for impairment of contract assets during the reporting period. This revision was made to represent the credit risks associated with the firm's customers more precisely.

In a filing on August 22, 2023, the engineering, procurement, and construction (EPC) company reported a year-on-year decrease of 8.51 per cent in its operating revenue, amounting to RMB 9.62 billion. The company's decision to halt its PPP and construction finance operations and a gradual reduction in its involvement in municipal and civil engineering contracts contributed to this decline.

For a more comprehensive exploration of EPC (Engineering, Procurement, and Construction), the nuances of engineering design, and the substantial role of aluminium within the construction and building sector, please have a look at AL Circle's e-Magazine, "Aluminium - Revolutionizing the Construction Sector".