China Aluminum no intention acquisition of Jiaozuo Wanfang

According to press on September 2 Morning news Chalco (601,600) last Saturday (August 30) the disclosure Ban Nianbao, sales revenue fell 7 percent to 39.607 billion yuan, net profit fell 65 percent to 2.41 billion yuan, or Profit of 0.178 yuan, to be distributed per share dividend of 5.2 points. The company said product sales to lower prices lead to reduced sales revenue, increased costs and caused snowstorm led to the shutdown, such as corporate profits decline. Yesterday's performance in the conference, XIAO Ya-chairman said that as the first company to a large number of electrolytic aluminum 2003 acquisition, profits for the first half of this year has brought greater contribution to compensate for the decline in the price of alumina some loss of profits.
XIAO Ya-that the first half of the overall development of China Aluminum smooth, despite the cost of aluminum increased 24 percent year-on-year, but the total proportion of the company's profits from the previous year is still 47 percent to 54 percent; cost of electrolytic aluminum increased by 5 percent year on year, accounting for a total profit The proportion dropped to 46 percent. Alumina in the second half of domestic sales growth is still greater than the GDP growth, a downward trend in prices but may also have greater repercussions in space. Bauxite company will strengthen development, reduce costs, reduced capital expenditure. Company's board plans to issue no more than 10 billion yuan of corporate bonds and medium-term notes through the issuance of coupons and short-term financing to reduce the financial cost. In addition, the companies plan to reduce the second half of Touzieqiang than 20 percent or more.
Mergers and acquisitions within the industry, XIAO Ya-disclosed, the company focused on the acquisition of overseas resources and energy, greater energy future will be placed on the integration of acquired businesses, the current acquisition of Jiaozuo Wanfang no concrete ideas, this is not the best time to buy. He also said the company Rio Tinto increased holdings to 11 percent stake in the applications have been approved by the Government of Australia is to maintain a choice of opportunity does not mean that its stock holdings immediately.
One industry analysts believe that in the Al-than-expected first half net profit, with the exception of the snowstorm effects, mainly due to rising raw material costs and weak prices of primary aluminum. Morgan pointed out that the General Clauses, in more than 80% of income from aluminum alumina, Aluminum impact on the company's earnings become a major factor. China Aluminum to the current 17,500 yuan per ton, lower than the industry average of 5%. China's aluminum industry the situation can not be sustained losses, it is estimated that the manufacturers will be production.