October 07, 2008

Chalco\'s net profit in 2007 down by 13.65% YoY

Aluminum Corporation of China Limited the dual Shanghai and Hong Kong listed arm of China's top alumina and aluminum producer announced that its net profit in 2007 down by 13.65% YoY to CNY 10.23 billion.

Chalco said in a statement that the fall was attributable to increased sales costs coupled with a drop in alumina and aluminum sales prices during the year. The company's total sales costs increased by 30.24% YoY to CNY 57.22 billion in 2007 reflecting both increased sales costs and growth in the external sales volume of alumina.

Impacted by fluctuations in the aluminum market, Chalco's aluminum sale price fell 3.15% YoY in 2007 to an average of CNY 16,914 per tonne which served to push down the company's annual income by CNY 1.70 billion. At the same time, Chalco's average alumina sales price for the year plunged by 19.51% YoY to CNY 2,912 per tonne, resulting in an CNY 4.26 billion drop in income for the company.

Chalco generated sales revenue of CNY 76.18 billion in 2007, representing an increase of 17.51% from the previous year which the company attributed to increased external sales of primary aluminum. It sold 3.09 million tons primary aluminum in 2007 outside of the company's subsidiaries up by 44.79% on an annual basis, though its external sales of alumina down by 3.90% annually to 6.03 million tonnes.

Over the course of the year, Chalco produced 9.57 million tonnes of alumina up by 8.38%YoY, 2.80 million tonnes primary aluminum up by 45.08% and 1.02 million tonnes of chemical alumina, down by 7.27%.