SHANGHAI, Mar. 25 (SMM) – Jiaozuo Wanfang Aluminum announced March 21 that its operating revenues grew 2.58% YoY in 2012, but its net profits attributable to shareholders of its listed company declined 104.03% YoY to RMB 15.36 million, its first loss since 2006. The company attributes its losses to falling prices of its products.

During the report period, it produced 450,700 mt of aluminum, up 8.08% YoY, while sales of aluminum also rose 10.34% YoY to 454,600 mt. The company put generators of 300MW into operation on January 22, 2013 in order to reduce aluminum production costs. Besides, its procurement price of major raw materials such as prebaked anode is lower than market price. 

Its operating revenues from aluminum rose 8.39% YoY to RMB 6.05 billion in 2012, but gross profit margin from aluminum fell 5.45% YoY to -2.13%.

Many Chinese aluminum-related companies reported falling profits or even losses due to a plunge in aluminum prices last year. Controlling costs while increasing efficiency has become the top priority for aluminum smelters this year. Many domestic aluminum producers are expanding into aluminum processing industry.    

Jiaozuo Wanfang Aluminum specializes in aluminum production and is among top 100 enterprises in Henan province. The company now has three aluminum production lines of 280KA and one carbon production line as well as 600MW generating units. Its aluminum and carbon capacity are 420,000 mt/yr and 50,000 mt/yr, respectively.