Net profit attributable to the parent company increased by 10 times year-on-year. Chinalco’s profit momentum continues to expand

On October 26, Aluminum Corporation of China Limited (hereinafter referred to as Aluminum Corporation of China) released the report for the third quarter of 2021. Faced with the adverse effects of rising prices of bulk raw materials, especially the changes in electricity price policies, Chalco has focused on reducing costs and increasing efficiency, and its operating performance has continued to improve. From January to September, the company’s operating income was 194.9 billion yuan, an increase of 46.39% year-on-year, and its net profit was 8.1 billion yuan, an increase of 7.4 times from the same period last year. The net profit attributable to the parent was 5.3 billion yuan, an increase of 10.4 times. The debt-to-asset ratio dropped by 3.33 percentage points from the beginning of the year. The company’s net operating cash inflow increased by 8.5 billion yuan from the same period last year, the best level in the same period in history.

In 2021, Chalco will adhere to problem-oriented, goal-oriented, and result-oriented. Through adjustment and optimization of the industrial layout, perfecting the benchmarking management system, and intensifying reform and innovation, the quality and efficiency will be rapidly improved, and the cost control ability and profitability will be further enhanced. As of the end of September, Chalco has completed more than half of the three-year action tasks for deepening reforms. All 77 affiliated companies have completed the tenure system and contract management reforms. The first batch of 9 professional field technology centers has been fully launched, and 8 companies Complete the pilot work for professional managers.

In order to cope with the unfavorable factors of the rapid increase in logistics and transportation prices, Chalco actively builds an online freight platform, strengthens strategic cooperation with high-quality enterprises such as ports, shipping, railways, and actively taps internal potential to increase efficiency, and promotes the construction of a ton logistics cost optimization mechanism; The price of bulk raw materials has risen sharply, and Aluminum Corporation of China has actively leveraged its advantages in centralized procurement, and comprehensively promoted the application of the “aluminum profitable procurement” platform and the “double horse racing” mechanism. The three major operating platforms of Chinalco International Trade, Logistics, and Materials have created a specialized, base, clustered, and collaborative trade logistics platform to reduce internal costs, create external benefits, and achieve first-class cost competitiveness in the industry.

Since the beginning of this year, Aluminum Corporation of China has systematically promoted scientific and technological research centered on high-quality, low-cost, intelligent, green, and high-end, and has made significant progress in solving the problem of “stuck neck” of key materials and import substitution of some products. New breakthroughs have been made in aluminum electrolysis hazardous waste disposal technology, red mud separation technology has opened up a new way for the full quantitative utilization of red mud, and the development of major energy-saving technologies for electrolytic aluminum has begun. At the same time, Aluminum Corporation of China conscientiously fulfills its corporate social responsibility. After the company was selected for the state-owned enterprise ESG·Pioneer 50 Index, the capital market and ESG professional rating agencies have also increased their recognition of the company’s ESG performance. The company’s selection of Hang Seng A-shares is sustainable To develop the corporate benchmark index, MSCI also upgraded the company’s ESG rating from CCC to B.

The steadily improving business performance of Chalco has won the attention and recognition of the capital market and investors. Institutional analysis shows that through industrial layout adjustments and deepening of structural reforms, Chalco faces a complicated external market environment, and its innovation, control, and anti-risk capabilities have been continuously enhanced. Many investment institutions have “buy” on Chalco’s stocks. “Overweight” rating.