Hong Kong, Mar 31, 2009 - (ACN Newswire) The Board of Directors of Aluminum Corporation of China Limited ( "Chalco" or "the Company"; SEHK: 2600, SE: 601600, NYSE: ACH) is pleased to announce the annual results of the Company and its subsidiaries (the "Group") for the year ended December 31, 2008 ("2008"). Prices of products of the Group have been declining due to the international financial crisis. The turnover of the Group in 2008 amounted to RMB76.7 billion, representing a decrease of 9.92% over the same period of last year. The net profit amounted to RMB 158 million, representing a decrease of 98.7% over the same period of last year. Earnings per share attributable to the equity holders of the Company was RMB 0.00068.
When reviewing the results for the first half of 2008, Mr Luo Jianchuan, Executive Director and President of Chalco said: "In 2008, the disasters including snow storm and earthquake in the PRC, international financial crisis, raw material price hikes and sharply decreasing sale prices of products posed unprecedented difficulties and challenges to the Groups production and operation. The Group adopted effective countermeasures, strengthened its management, reduced energy consumption, tapped potentials, increased efficiency, controlled costs and fees, stabilized supply, strengthened sales and monitored investment to enable a stable operation of the Groups production and business."
In 2008, the production volume of alumina of the Company reached RMB 9.02 million tonnes, representing a decrease of 5.8% over the corresponding period last year; the production volume of primary aluminum reached 3.25 million tonnes, representing an increase of 16.1% over the corresponding period last year; the production volume of aluminum fabrication products reached 0.353 million tonnes, representing an increase of 341.3% over the corresponding period last year.
In 2008, the Group strengthened financial management and control of costs and fees, leveraged capital market opportunities to optimize debt structures. The Company issued medium-term bonds for a principal amount of RMB 10 billion with a maturity of 3 to 5 years, and short-term debenture amounted to RMB5 billion.
The Group further reinforced resource protection in 2008 and spared no effort in accelerating the pace of mine construction, strengthening ore procurement and production and improving safety and reliability of ore supply and comprehensive utilization of resources. In 2008, contribution of self-mining mines increased by approximately 11 percentage points as compared to the corresponding period last year. Furthermore, the Group acquired the mining rights of 20 bauxite mines with a bauxite reserve of 120 million tonnes, which increased the self-mining capacity of bauxite by 3.46 million tonnes.
The Group continued to optimize industry chain to enhance risk resistance in 2008. Acquisitions of five aluminum fabrication enterprises and one aluminum enterprise had been completed, paving the way to avoid the risk of industry cycle and improve comprehensive competitiveness.
Looking ahead, Mr. Luo Jianchuan said: "In light of the slackening global economic growth, significant decline in demand for aluminum and plummeting aluminum prices, the Company will actively address the current market environment to accomplish tasks. The Company will strengthen the production structure, promote flexible and streamlined production in accordance with the principles for maximizing efficiency. The Company will continue executing the cost reduction and efficiency boosting in the whole process, optimise technological and economical indicators, and reduce consumption of materials and energies so as to fully cut down costs. The Company will enhance capital budgeting and expenditure management to ensure cash flow; and the control on capital risks will be enhanced. The Company will strictly control investments, optimise investment structure and arrange a tightened project plan. The Company also aims to improve its core competitiveness by executing technology strategies. We will make the greatest efforts to achieve our goals as a return to our shareholders."
Consolidated income statement
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For the years ended December 31
2008 2007
RMB000 RMB000
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Sales 76,725,941 85,198,835
Cost of sales (70,073,660) (64,936,133)
Gross profit 6,652,281 20,262,702
Selling and distribution expenses (1,562,409) (1,355,534)
General and administrative expenses (3,462,472) (3,042,363)
Research and development expenses (177,507) (229,803)
Other gains, net 372,771 158,913
Operating Profit 1,822,664 15,793,915
Interest income 193,046 198,193
Interest expense (1,864,742) (1,226,175)
Exchange loss, net (37,870) (12,189)
Finance costs, net (1,709,566) (1,040,171)
Operating profit after finance costs 113,098 14,753,744
Shares of profits / (losses) of 1,672 (3,381)
jointly controlled entities
Shares of profits of associates 10,045 241,945
Profit before income tax 124,815 14,992,308
benefits / (expense)
Income tax expense 33,557 (2,869,210)
Profit for the year 158,372 12,123,098
Attributable to:
Equity holders of the Company 9,228 10,753,042
Minority interest 149,144 1,370,056
Basic earnings per share for profit 0.00068 0.84
attributable to the equity holders of
the Company (expressed in RMB per share)
Dividends 703,273 4,131,749
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About Aluminum Corporation of China Limited
Aluminum Corporation of China Limited is the largest producer of alumina and primary aluminum in China. The scope of business of the Company includes bauxite mining, alumina refining and aluminum smelting. The Company was established as a joint stock limited company incorporated in the People's Republic of China on September 10, 2001. The Company successfully issued its American Depository Receipts ("ADRs") and H shares in New York and Hong Kong respectively. In the meanwhile, its ADRs and H shares were listed on the New York Stock Exchange, Inc. and the Stock Exchange of Hong Kong Limited on December 11 and 12, 2001, respectively. Its A shares were listed on the Shanghai Stock Exchange on 30 April 2007.
Source: Aluminum Corporation of China Limited
Contact:
Aluminum Corporation of China Limited Secretariat to the Board of Directors No. 62 North Xizhimen Street, Hai Dian District Beijing P.R.C. (Post Code: 100082) Tel: (+8610) 8229 8150/8156 Fax: (+8610) 8229 8158 IR_FAQ@chalco.com.cn
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