In mid-May, Mingtai Al. released a record of investor relations activities, mentioning that the company's production and sales of aluminium plate/sheet, strip and foil in Q1 reached a new historical high, with sales volume approaching 380,000 tonnes, up 11 per cent Y-o-Y. The company is unwavering in its commitment to driving product structure improvement through technological innovation, emphasising "quality improvement and efficiency enhancement," focusing on "high-end intelligent manufacturing," and strategically positioning itself to seize future opportunities. The development and stable supply of products in emerging fields such as new energy, automotive transportation, and robotics are contributing to the company's steady growth in production and sales.
_0_0.jpg)
Image for referential purposes only
Mingtai Al.'s previously released Q1 performance report showed that the company achieved a total revenue of 8.124 billion yuan in Q1, up 13.07 per cent Y-o-Y; net profit attributable to shareholders of the publicly listed firm reached RMB 440 million, up 21.46 per cent Y-o-Y.
According to public information, the company primarily engages in the comprehensive application of aluminium plate/sheet, strip and foil, aluminium extrusion, and secondary aluminium resources. It possesses four hot continuous rolling production lines, internationally advanced aluminium dross treatment production lines, and secondary aluminium process technology and equipment.
Its products cover 47 alloy grades from the 1-series to the 8-series, with over 200 specifications and models available. The company serves more than 4,000 customers, with its products being popular in over 50 countries and regions both domestically and overseas. They are widely used in numerous fields such as new energy, electronics and home appliances, 5G communications, pharmaceutical packaging, food packaging, transportation, ultra-high voltage power transmission, railcar bodies, new infrastructure, and military industries.
Regarding current orders on hand, Mingtai Al. stated that historically, March marks the peak consumption season for aluminium. The company's current orders on hand have increased, sufficient to meet one and a half months of production scheduling. Moreover, the company's product processing fees have remained stable with an upward trend. In Q1, the company and the industry raised processing fees for products such as CTP/PS plates, can stock, and easy-open end stock.
Additionally, the company was asked about the impact of the US's "reciprocal tariff" policy on its foreign trade. Mingtai Al. responded that during the 2018 Sino-US trade war, the US imposed anti-dumping and countervailing duties on Chinese aluminium products, after which Mingtai Al.'s direct exports to the US decreased significantly. Recently, steel and aluminium products were not included in the US's "reciprocal tariff" policy. Foreign trade sales volume has increased QoQ this year, with foreign trade orders showing signs of recovery.
Regarding the company's development plan for 2025, Mingtai Al. stated that it is dedicated to its core business, focusing on "high-end intelligent manufacturing" and "low-carbon circular economy." This year, the company will prioritise the construction of high-end heat treatment lines to promote product upgrading, paying close attention to aluminium demand in fields such as new energy, automotive materials, semiconductors, industrial robots, and low-altitude flight.
It will actively develop products in these related fields and continuously improve its product structure. This year, the production capacity of the subsidiary Yirui New Materials and overseas bases continued to be released, ensuring a significant increase in the company's production and sales scale in 2025.
Mingtai AL. was also asked whether the company’s scale of secondary aluminium conservation application would continue to expand in 2025. The company stated that in the second half of 2024, the EU began requiring the submission of product carbon emission data. After preliminary calculations by the company, secondary aluminium products demonstrated significant advantages in carbon emission reduction, and the company is unwavering in its commitment to continuously promoting the development of the secondary aluminium business.
At the end of 2024, China Customs relaxed restrictions on the import of deformed aluminium scrap, supporting the development of enterprises engaged in the conservation application of secondary aluminium. The company established an International Procurement Department for Secondary Aluminium to further expand the sources of aluminium scrap procurement, actively promote the application of secondary aluminium products, and continue to lead the industry in low-carbon development.
Previously, the company also released its 2024 annual report data, showing a total revenue of 32.321 billion yuan, up 22.23 per cent Y-o-Y; the net profit attributable to shareholders of the publicly listed firm was 1.748 billion yuan, up 29.76 per cent Y-o-Y.
According to the annual report data, the company currently has an annual processing capacity of over 1 million tonnes of aluminium scrap and a comprehensive utilisation capacity of 120,000 tonnes of aluminium dross, reaching internationally advanced levels. In terms of the aluminium plate/sheet, strip and foil business, the existing production capacity is over 1.6 million tonnes.
The company produces a variety of products, including battery aluminium foil for pouch batteries, electronic foil, checkered plate, lightweight materials for commercial vehicles, and food and pharmaceutical packaging foil, which consistently rank among the top in the domestic market share. The proportion of high-value-added products, such as aluminium for new energy and new materials, aluminium for transportation, and aluminium for automotive lightweight applications, is gradually increasing.
In the aluminium extrusion business, Mingtai Traffic New Material operates steadily, achieving self-sufficiency in railcar extrusions, supplying aluminium alloy railcar bodies in bulk, and externally selling products such as new energy battery trays, automotive extrusions, extruded aluminium pipes for GIL used in ultra-high-voltage power transmission equipment, and interior fittings for rail vehicles, continuously expanding its business scope.
In terms of procurement mode, the company's main raw materials are aluminium ingots and secondary aluminium, adopting a "produce based on sales, purchase based on production" approach. It procures from suppliers in a continuous and batch-by-batch manner according to customer orders and production and operation plans.
The procurement price is determined based on the average spot aluminium price on the Shanghai Nonferrous Metals Market, adjusted in consideration of payment terms, freight responsibility, and the type of secondary aluminium. The company has signed long-term procurement agreements with some aluminium ingot suppliers of a certain scale and economic strength, establishing long-term and stable cooperative relationships to ensure convenient and timely raw material supply.
Moreover, to cope with potential losses from volatile raw material prices, Mingtai AL. issued an announcement on April 23 regarding the implementation of aluminium ingot hedging. It mentioned that engaging in aluminium ingot futures trading can fully utilise the hedging mechanism in the futures market to mitigate the risk of raw material price fluctuations, avoid potential losses from volatile raw material prices, ensure the relative stability of product costs, and reduce the impact on the company's normal operations.
When mentioning the impact of aluminium ingot hedging on the company, Mingtai Aluminum stated that the company specialises in the production and sales of aluminium plate/sheet, strip and foil, with aluminium ingot as its main raw material.
To avoid the impact of fluctuations in raw material prices, the company will actively hedge relevant risks through the hedging function of futures, adhering to the principles of legality, prudence, safety, and effectiveness, without the purpose of arbitrage or speculation. The company has formulated relevant risk control measures to strictly control investment risks. The company's engagement in the futures hedging business will not harm the interests of the company and all its shareholders.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
Responses
