Aluminum Corporation of China (2600) Q2 2024 earnings summary

Executive summary

• Net profit attributable to owners surged 105.33% year-over-year to RMB7.016 billion, despite a 17.41% decline in revenue to RMB110.718 billion, driven by higher alumina and aluminum prices and improved cost control.

• Operating cash flow increased to RMB13.485 billion, and gearing ratio improved to 49.97%, the lowest in nearly a decade.

• Interim dividend of RMB0.082 per share proposed, totaling approximately RMB1.407 billion, pending shareholder approval.

• Strategic focus on optimizing industrial layout, technological innovation, and green initiatives drove record interim results.

Financial highlights

• Net profit attributable to owners: RMB7.016 billion, up 105.33% year-over-year.

• Operating revenue: RMB110.718 billion, down 17.41% year-over-year, mainly due to reduced trading volume.

• Basic EPS: RMB0.409, up from RMB0.198 in the prior year.

• Gross profit: RMB18.43 billion, up from RMB12.01 billion year-over-year.

• Cash and cash equivalents: RMB24.463 billion as of June 30, 2024.

Outlook and guidance

• Expects aluminum supply and demand to remain balanced, but price volatility anticipated due to non-market factors.

• Plans to accelerate structural adjustments, cost control, and green transformation, with focus on both traditional and emerging industries.

• Emphasis on technological innovation, digitalization, and high-end product development to enhance competitiveness.

• Ongoing risk management initiatives to address production safety, environmental compliance, and legal risks.