SHANGHAI, Mar. 27 (SMM) – Jilin Liyuan Aluminum will likely see a 20% growth in its aluminum extrusion output in 2013 to 76,000 mt.
According to Jilin Liyuan Aluminum’s 2012 annual report, the company reported RMB 1.52 billion in business revenues last year, up 23.32% YoY. Profits attributable to shareholders of its listed company also grew 42.58% YoY to RMB 202 million. Earnings per share were RMB 1.08, an increase of 42.11%, though slightly below forecasts.
The company specializes in aluminum extrusion for construction and industry use and deep-processed aluminum semis. Industrial aluminum extrusion and deep-processed products, which represent higher gross profits, accounted for 70% of its product portfolio. It produced 64,000 mt of aluminum extrusion last year, up 13.5% YoY. Its net profits rose 42.58% YoY thanks to higher proportion of deep-processed products with high gross profits.
The company’s growing profits were driven by the following five sectors. 1. Electronics. Liyuan Aluminum supplied over 4,000 mt of products for Apple Inc. in 2012 and contracts for 2013 are still under negotiations. It was reported that the company has secured bids from Apple to produce iPad cases for Apple. 2. High-end automobiles. The company supplied 6,000 mt of goods to Engley Auto Parts last year. With its 4,500 mt extruders entering production in 2H 2012, its output of bumpers and structure parts used in high-end cars will grow further. The company will also provide car frames, bumpers, buffer beams and engine bedplates for BMW this year. 3. Rail transportation. The company’s 10,000 mt extruder entered full production in 2012. It has signed supply contract with China CNR Corporation and will also serve Siemens. 4. Seamless pipes. Liyuan Aluminum has finalized a 20-year agreement with Qingdao Hailong Machinery Group. According to the agreement, it will supply seamless pipes used for petroleum drilling to Hailong Group at lower than import price. 5. Solar energy brackets and components. The company also entered into aluminum extrusion framework agreement with MITSUI in 2011, enabling it to supply 2,000 mt of solar energy brackets and components in 2012 and 4,000 mt in 2013.
It is expanding investments in railcars and deep processing by purchasing 15,000 mt and 8,200 mt extruders with the funds it raised. Construction of facilities has come to an end. Its 8,200 mt extruders are scheduled to enter production in September this ear, while 15,000 mt extruders will arrive early next year.