Weak Economic Conditions Hurt Dongyangguang Aluminum’s 2011 Earnings

Guangdong Dongyangguang Aluminum Co., Ltd. released the 2011 annual report recently, saying its operating revenues were RMB 4.76 billion in 2011, up 26% YoY; total profits were RMB 502 million, up 24% YoY; and net profits attributable to shareholders of listed company were RMB 287 million, up 15.8% YoY.

Guangdong Dongyangguang Aluminum said that its operating income in 4Q 2011 fell by 21.67% from 3Q due to domestic and international economic downturn, and its 4Q net profits were down by 58.59% on a quarterly basis, which hurt its annual results in 2011.

The company added 8 etched foil production lines and 37 formed foil production lines in 2011, improving its electrode foil production capacity. The proportion of the company’s medium and high pressure etched foil and formed foil increased further, helping improve the profitability of electrode foil and capacitor. The company further deepened the technical cooperation with Japan’s Furukawa-Sky Aluminum Corporation in brazing foil production, and related equipment was improving gradually as well.

The company’s 21 million square meters foil expansion project has entered the early commissioning phase, and the project will become fully operational in 2012-2013, with production capacity expected to reach 35 million square meters in 2012 and 43 million square meters in 2013. The market share of the company's products is expected to further increase benefiting from Japan’s industrial transfer to China.