Chalco is the only large international aluminum company in the global aluminum industry with a complete industrial chain. Its business includes three core main industries: bauxite, alumina, and electrolytic aluminum; and three core sub-industries: high-purity aluminum and aluminum alloys. , fine alumina; three supporting industries: carbon, coal, and electricity. The company's revenue/net profit attributable to parent companies in 2023 will be 225.071 billion yuan and 6.717 billion yuan respectively, -22.65% and +60.23% respectively year-on-year. The decline in revenue is mainly due to the company's reduction in trading business, which accounts for a high proportion but relatively low gross profit, and profits have increased. Benefited from the cost optimization of electrolytic aluminum and the company's cost reduction, efficiency improvement and asset optimization. In 2023, the company's primary aluminum and alumina revenue will be 125.312 billion yuan and 53.526 billion yuan respectively, accounting for 55.68% and 23.78% of revenue respectively; the primary aluminum and alumina segments will contribute pre-tax profits of 11.243 billion yuan and 985 million yuan respectively. We believe With the active advancement of alumina projects in Indonesia and Guinea, the performance of the company's alumina segment still has room for growth.
There is a mismatch between supply and demand in the industry, and aluminum prices still have room to rise.
On the raw material side, domestic dependence on bauxite imports continues to increase. In 2023, China's bauxite output will be 93 million tons, and 99.315 million tons of bauxite will be imported from Guinea. However, overseas policies and energy issues continue to disrupt the supply of raw materials. We believe that subsequent raw materials Stable supply capacity will also become one of the competitiveness of aluminum companies. On the supply side, the current medium- and long-term production capacity limit of electrolytic aluminum is controlled at 45 million tons. New production capacity must replace the original production capacity indicators. The current operating production capacity is basically close to the ceiling, and the supply-side increase is limited. On the demand side, aluminum used in the automotive and photovoltaic industries contributes to the increase in demand: new energy vehicles have higher requirements for weight reduction and improved endurance. With the development of new energy vehicles, lightweight and high-strength aluminum profiles for automobiles may continue to be replaced; photovoltaic installed capacity High volume growth has driven increased demand for photovoltaic aluminum frames.
Key projects continue to be released, and the advantages of integration are highlighted.
In terms of bauxite, the company ranks first in domestic bauxite reserves and continues to expand its overseas layout. Guinea's Bofa ore resources are 1.761 billion tons. The resource self-sufficiency rate is high and the endowment is excellent. The stable and reliable bauxite resources highlight the company's integration. Advantage. In terms of midstream and downstream, the company's aluminum products will continue to be put into production in the next two years: Guangxi Huasheng Phase II 2 million tons alumina project, Qinghai Branch 500,000 tons and Inner Mongolia Huayun Phase III 420,000 tons electrolytic aluminum project are expected to be released, and key projects are expected to drive The branch's sales and profits increased.
