Nanshan Aluminium International (2610) investor relations material

Executive summary

• Maintained position as a leading alumina producer in Southeast Asia with 4 million tons annual capacity, serving mainly regional manufacturers and global traders.

• Revenue for the six months ended 30 June 2026 was US$415.0 million, down 30.5% year-over-year due to a 39.5% drop in average alumina prices, despite a 15% increase in sales volume.

• Net profit attributable to shareholders was US$62.7 million, a 74.8% decrease year-over-year, mainly from lower gross margins.

• Initiated preparatory work for a 250,000-ton electrolytic aluminium project in Indonesia, with plans for an additional 500,000 tons in the medium to long term.

• Declared an interim dividend of HK$0.16 per share for the period, down from HK$0.65 per share in the prior year.

Financial highlights

• Gross profit was US$65.5 million (gross margin 15.8%), down from US$303.9 million (gross margin 51%) in the prior year.

• Other net income rose 183.2% to US$23.1 million, mainly from higher net foreign exchange gains.

• Administrative expenses increased 26.6% to US$17.0 million, driven by share-based payment expenses.

• Income tax expense fell 84.8% to US$6.6 million, in line with lower profits.

• Cash and cash equivalents increased to US$666.7 million as of 30 June 2026 (31 December 2025: US$321.3 million).

Outlook and guidance

• Expects alumina market oversupply to persist short-term, but mid-term stabilization and price rebound are anticipated as inventories decline and demand recovers.

• Commissioning of the electrolytic aluminium project is expected to enhance long-term profitability and competitiveness.

• Strategic focus includes advancing the Electrolytic Aluminium Project and integrating upstream and downstream operations in Indonesia.