Tianshan Aluminum Group (002532) investor relations material

Executive summary

• Q3 revenue reached RMB 9.91bn, up 41.69% YoY; net profit attributable to shareholders was RMB 2.25bn, up 78.79% YoY.

• 9M revenue was RMB 27.42bn, up 22.85% YoY; attributable net profit rose 92.30% to RMB 6.42bn.

• 9M operating cash flow increased 73.19% YoY to RMB 8.41bn, while total assets were RMB 52.82bn at period-end, down 2.46% from year-end.

Financial highlights

• 9M adjusted for non-recurring items, net profit was RMB 6.31bn, up 97.07% YoY; Q3 adjusted net profit was RMB 2.24bn, up 80.78%.

• 9M total profit was RMB 8.80bn versus RMB 3.93bn YoY; net profit was RMB 6.41bn versus RMB 3.34bn.

• 9M operating costs were RMB 18.63bn; R&D expense rose 41.63% to RMB 232.9m, while financial expense fell to RMB 294.4m from RMB 383.3m.

• Other income declined 30.29% to RMB 175.4m, reflecting lower VAT additional credit deductions; government grants included in non-recurring gains were RMB 165.3m for 9M.

Key financial ratios and metrics

• Basic and diluted EPS were RMB 0.49 for Q3, each up 81.48% YoY; 9M EPS was RMB 1.40, up 91.78%.

• Weighted average ROE was 6.90% for the reporting period and 20.29% year to date.

• Period-end equity attributable to shareholders was RMB 32.67bn, up 10.49% from year-end; total liabilities were RMB 20.16bn versus RMB 24.59bn at year-end.