SHANGHAI, Mar. 13 (SMM) – According to the annual report of China Hongqiao Group, the company reported RMB 24.81 billion in business revenues during 2012, up 5.0% YoY, but profits declined 2.1% YoY to RMB 8 billion. Earnings per share also dropped 9.7% YoY to RMB 0.93.
The company attributes its declining profits to slowing economy, tougher housing curbs in China and falling aluminum prices from slowing demand downstream.
As China’s fourth biggest aluminum products producer, China Hongqiao Group’s designed capacity for aluminum products was 2.02 million mt/yr in 2012, up 13.5% from 2011’s 1.78 million mt/yr. The company also owns generating units of 2,730 MW. Its subsidiary alumina plant in Shandong’s Zouping County helped reduce its aluminum production costs.
The company has painted a rosy picture of future aluminum demand from rail, affordable housing construction, urbanization, power, electronics and food packaging sectors.
In order to reduce production costs, China Hongqiao Group will strengthen aluminum-electricity integration by increasing the proportion of self-owned power plants to 70% in 2013. Meanwhile, the company will expand investment in aluminum alloy processing and aluminum continuous hot rolling sectors.