Nanshan Aluminum's net profit decline will enter aviation and other high-end fields

Shandong Nanshan Aluminum Co., Ltd. released a mid-year report showing that in the first half of the year, the company realized operating income of 6.19 billion yuan, a year-on-year decrease of 8.16%; net profit attributable to shareholders of listed companies was 254 million, down 17.73% year-on-year.

During the reporting period, the company's operating conditions decreased year-on-year, mainly due to the rebound in aluminum ingot market prices and alumina powder market prices in the first half of 2016, but there was still a large gap compared to the prices in the same period of the previous year, and the profitability of aluminum products industry decreased year-on-year. At the same time, the financial expenses during the reporting period increased significantly. In the first half of 2016, the total financial expenses amounted to RMB 60,492,613.29. The total financial expenses for the same period of the previous year totaled RMB 19,394,963.32, an increase of RMB 410.977 million over the same period of the previous year, which was an increase of 211.90%, mainly due to the 2016 Withdrawal of corporate bond interest of RMB 35 million.

Open up the market to adjust product structure and increase new product R&D:

In the first half of the year, facing the gradual recovery of the domestic non-ferrous market, Nanshan Aluminum actively explores the market, adjusts its product structure, and intensifies research and development of high-value-added products and realizes initial supply.

Among the medium-board projects fundraising, the products are mainly positioned as high-value board products such as aerospace panels, automotive panels, shipboards, and LNG panels, rail transportation panels, tool and die boards, and electronic boards. The product has been completed and developed, with the conditions for bulk supply. The company is currently actively promoting the progress of related product certification.

For rolled materials, the structure of cold-rolled products is gradually adjusted to increase the proportion of coating materials and cans with high added value; in the case of aluminum foil, new energy batteries that are currently attracting attention are mainly developed for the market share of high-end double-zero aluminum foil. Foil, has now successfully developed a variety of alloy models and a number of customers for the sample, the individual alloys have reached the conditions of volume supply.

In terms of building profiles, it will continue to increase its strategic cooperation with large real estate companies and large-scale window and curtain wall companies and focus on developing markets.

In terms of industrial materials, while continuing to strengthen strategic cooperation with Qingdao Sifang and CIMC, we will increase our efforts in the areas of aerospace, high-speed rail, power pipe sticks, containers, conductive rails, semitrailers, tankers, air cooling systems, and subway screen doors. Order mining, customer development and new product research.

Construction in progress:

According to the report, the product structure of Nanshan Aluminum will gradually be adjusted to high value-added aircraft frames, beams, landing gear, engine turbine disks, ship plates and automobile plates.

Among them, the forging project under construction is a large-scale, high-end forging company built on the advantages of Nanshan Aluminum's full industrial chain and built according to the "leading domestic and world-class" standards. With the ability to produce high-tech, high value-added forgings of 2 Series, 5 Series, 6 Series, 7 Series aluminum alloys and titanium alloys, high temperature alloys, high strength structural steels, etc., the products will cover aviation, shipbuilding, automotive, petrochemical, Rail transportation, energy, marine and other high-end equipment.

In addition, the company will also enter the high-end aluminum foil market. Among them, the 40,000-ton high-precision multi-purpose aluminum foil production line project under construction will be able to make up for the current situation of domestic high-quality aluminum foil production capacity and insufficient production capacity after being completed and put into production. It can be used in the aseptic packaging industry, high-end double-zero aluminum foil and new development. High-performance Power Battery foils provide productivity support.