Jiangsu Alcha Aluminum’s 2011 Net Profit Plummets

Jiangsu Alcha Aluminum Co., Ltd released the 2011 annual report recently, saying its production and sales were 93,900 mt and 91,000 mt, respectively, unchanged from 2011; total operating revenues were RMB 2,053,560,000, up 5.35% YoY; total profits were RMB 6,805,700, down 86.44% YoY; and net profits were RMB 5,969,500, down 86.68% YoY.

Jiangsu Alcha Aluminum achieved revenue of RMB 1.47 billion from air-conditioner foil in 2011, up 2.6% YoY, but gross profit margin decreased slightly to 9.72%. The growth of air-conditioner slowed in 2011 due to property market control and the withdrawal of the subsidy program for home appliance purchases in rural areas. The company adjusted the product structure timely in 2H 2011 and increased the production of high value-added hydrophilic foil in order to ensure stable profitability. The company built relationships with well-known enterprises such as Daikin and Gree, so its air-conditioner foil orders will be stable in 2012.

The aluminum alloy foil is the company's new business growth point. Jiangsu Alcha Aluminum sold 21,800 mt of aluminum alloy foil in 2011, accounting for 24% of total sales and generally realizing its goal of product structure adjustment. The company will continue to promote the marketization and industrialization of aluminum alloy foil in 2012 so as to generate a new profit growth point with aluminum alloy material for vehicle heat exchangers, shutters and sheets as leading products.