Yunnan Aluminum Co., Ltd.: year-on-year pre-increase of 263.41% in 2021% 276.71% failed to meet the annual target on schedule

Yunnan Aluminum Co., Ltd. previously disclosed a pre-increase report on its results, saying that the results in 2021 are expected to achieve a net profit of 3.28 billion yuan to 3.4 billion yuan attributable to shareholders of listed companies, an increase of 263.41% Murray 276.71% over the previous year.

In the first quarter, the net profit attributed to shareholders of listed companies was 682 million yuan, and the cumulative net profit in the first half of the year was 1.998 billion yuan, with an obvious growth rate in the second quarter, 1.233 billion yuan in the third quarter, and 3.232 billion yuan in the first three quarters.

For the reason for the pre-increase in performance, Yunnan Aluminum Co., Ltd. said that due to the rise in aluminum commodity prices in 2020, the company's operating performance in 2021 increased compared with the same period last year.

But at the same time, affected by the double control policy of energy consumption in the second half of the year, the situation of power and production restriction was serious, and on November 18, Yunnan Wenshan Aluminum Co., Ltd., a wholly-owned subsidiary of Yunnan Aluminum Co., Ltd., a wholly owned subsidiary of Yunnan Aluminum Co. Yunnan Aluminum Co., Ltd. said that the annual production and sales of aluminum commodities did not meet the targets set at the beginning of the year; coupled with the rise in the prices of bulk raw and auxiliary materials such as alumina, anode carbon blocks and petroleum coke since the fourth quarter, the state and local governments cancelled preferential electricity prices in the electrolytic aluminum industry, as well as "energy consumption double control", shutdown, load reduction, increase repair costs, etc., resulting in a significant increase in the complete cost of electrolytic aluminum.

It should be noted that since May 2021, due to the shortage of power supply, industrial enterprises in Yunnan Province have implemented orderly power consumption, and the power load of Yunnan Aluminum and its subordinate enterprises has been greatly reduced. Limited by electricity, the electrolytic aluminum production capacity was reduced by about 770000 tons. At the same time, the 380000 tons production capacity of the second phase of the Ludian Earthquake project for post-disaster recovery and reconstruction of hydropower and aluminum, which has been completed by the company's holding subsidiary Yunnan Yunaluminum Haixin Aluminum Co., Ltd., also failed to put into operation as planned.

And with the notice issued by the relevant local departments on resolutely doing a good job in the double control of energy consumption, the notice requires that "continue to do a good job in the production management and control of the green aluminum industry to ensure that the average monthly output of green aluminum enterprises from September to December is not higher than that of August." The implementation of this policy will lead to a significant reduction in the production of electrolytic aluminum from September to December 2021 compared with the production plan made at the beginning of 2021.