SHANGHAI, Mar. 27 (SMM) – According to Shandong Nanshan Aluminum’s 2012 annual report, the company reported RMN 14.87 billion in operating revenues last year, up 11.57% YoY. Nevertheless, its profits declined 28.72% YoY to RMB 985 million.
Increasing sales volumes from commissioning of new production lines were the major reason behind its rising operating revenues, while its decline in profits was due mainly to rising costs. Operating revenues from aluminum and aluminum extrusion were RMB 23.43 billion, its biggest contributors. However, gross profit margins from these two segments dropped 0.64 percentage point to a mere 1.63%.
In 2012, its aluminum extrusion output and sales were little changed from the previous year. As regards construction aluminum extrusion, it has been cooperating with large housing developers such as Rise Sun Housing Development and Ever Grand Group and curtain wall companies such as Beijing Jiangho Curtain Wall and Gold Mantis Construction Decoration. In term of industrial aluminum extrusion, it focused on power transistors, aluminum rod and aluminum extrusion for automobile use. Respect to aluminum plate, sheet, strip and foil, sales in these segments were up 11% YoY, compared with an 18% growth in domestic market and a 7% decline in overseas markets due to higher SHFE/LME aluminum price ratio. Its sales of cold-rolled products also rose 24% YoY.
In 2013, Nanshan Aluminum will push ahead with the installation of 150MN equipment for its 220,000 mt/yr rail transportation production lines. It will also raise funds to build 200,000 mt/yr super-large, special aluminum alloy production lines. Besides, the company will put great efforts in R&D so as to step up production of alloy with high added value.