Ye Chiu 2013 Profit Falls 45.24% YoY as Lower Aluminium Prices Cut Margins

SHANGHAI, Apr. 25 (SMM) - Ye Chiu Metal Recycling (China) Ltd.’s net profit fell 45.24% in 2013 from a year ago as lower aluminium prices cut its gross margins.

The Asia’s largest secondary aluminium producer made a net profit of 89.96 million yuan ($15 million) or 0.22 yuan per share last year, it told Shanghai Stock Exchange today.

Secondary aluminium industry is faced with ``huge pressure’’ in a short term due to depressed metal prices and higher costs of capital and production, it said in its full-year financial report, adding that the room for future development is still ``healthy’’ with global economic recovery.

The company would strive to widen the domestic channel of purchasing as China’s continuous growth heralds in the recycling period for cars, hardware and e-waste, it said.

Ye Chiu sold 326,200 tonnes of aluminium alloy ingots in 2013, 1.4% lower year-on-year while gross margins went down 2.83% from a year ago due to an 8% year-on-year fall in London Metal Exchange aluminium prices, it said.

Ye Chiu currently has a production capacity of 269,000 tpy in China and another 51,000-tpy capacity at its Malaysian subsidiary company.

It plans to make 336,000 tonnes of sales this year, and to more than double its production capacity to 761,400 tpy from 320,000 tpy.