SHANGHAI, Mar. 27 (SMM) – According to Jiangsu ALCHA Aluminum (ALCHA)’s 2012 annual report, the company reported 93,800 mt in sales volumes last year, up 2,700 mt from the previous year. However, its operating revenues fell 6.78% YoY to RMB 1.91 billion, with profits attributable to shareholders of its listed company down to – RMB 69.25 million.
Three reasons were behind its falling revenues and profits. First, anemic recovery in global economy last year undermined consumption of home appliances including air-conditioners. Processing fees dropped RMB 500/mt on average due to intensified competition from overcapacity. Second, higher SHFE/LME aluminum price ratio squeezed margins of exports. Third, its inventories were high.
Construction on 250,000 mt/yr aluminum plate, sheet, strip and foil project of Baotou ALCHA North Aluminum, its wholly-owned subsidiary, came to an end last year. Casting & rolling machines are scheduled to enter trial production in May this year and all production lines are slated to enter trial production by the end of 2013.
Besides competing for shares in air-conditioner foil markets, the company is also putting greater efforts in R&D of alloy foil. Composite brazing aluminum foil, thin plates and PS printing plates are among its newly-developed products. The company has set itself a target of producing 120,000 mt of aluminum foil this year, 28.2% more than last year. Its target for air-conditioner foil is 75,000 mt, up 7%; 45,000 mt for aluminum alloy foil, plate and sheet, an impressive 91.5% increase; and 24,000 mt of aluminum semis for automotive use, a 50% rise.