China Aluminum Group's huge loss 7.25 billion yuan diversification strategy to save oneself

108 Central Enterprises, 5 losses last year, China Aluminum Company (hereinafter referred to as "Chinalco Group") is a loss of 7.25 billion yuan, the most losses of the company. A few days ago, SASAC announced 129 state-owned enterprises can open the information of the operation of the state assets of the 108 companies last year's national assets operation.　　The data shows that Chinalco's 2009-year total profit is 7.25 billion yuan, and the net profit attributable to the owner of the parent company is 4.25 billion yuan. A number of analysts yesterday told the first financial daily reporter, because of the Chinese aluminum industry (601600.　　SH) is the most important plate of Chinalco group, therefore, last year's huge loss was mainly due to its traditional main business aluminum industry. Excessive expansion of the ambush pen the 2009 annual report of Chinalco has also proved this, the impact of the international financial crisis and the aluminum product market in the industry cycle trough the adverse impact of domestic and foreign related industries to the demand for aluminum significantly reduced, coupled with overcapacity, resulting in aluminum prices in the first half of 2009 operating low,　　China's aluminum industry lost 4.65 billion yuan in 2009 years, while in 2008 the company's net profit was 8.812 million yuan.　　It is also the worst track record for Chinalco since its IPO.　　In addition to the market cycle, some of Chinalco's own problems have been a foreshadowing of last year's huge losses. After the listing, Chinalco has been a large-scale mergers and acquisitions, the domestic alumina, electrolytic aluminum market, the absolute leader. 2007 China Aluminum returned a A-share, and continued absorption of S-LAN aluminum, s Shandong aluminum, Baotou aluminum, Liancheng aluminum industry.　　But the rapid expansion behind, also hides the management, the finance, the cost and so on multiple hidden dangers, these hidden dangers in the aluminum industry after the financial crisis the overcapacity manifests more obviously. In addition, compared with the industry, Chinalco's operating costs and management costs are relatively high. Securities chief industry analyst Heng Kun points out that Chinalco's alumina and electrolytic aluminum production costs are in the high-end industry, on the one hand, because of its electrolytic aluminum and alumina production line, the unit energy consumption is high, this with the production line construction earlier, process and equipment level behind;　　Chinalco's number of employees and management staff accounted for, as well as staff income and welfare benefits are higher than domestic counterparts, especially higher than private enterprises, organizational settings are not refined and flat. It is precisely because of this, Chinalco began to start in June 2009 with the merger of management agencies, compression management level, the focus of the management of the managerial system reform.　　And 2010, also by the Chinalco group general Manager Xiong defined as the implementation of all-round deep structural adjustment of the beginning of the year. Avoid hanging dead in a tree. According to the reporter understand, in the aluminum internal meeting, has asked to lift the company's strength, to support the Chinese aluminum industry to achieve full-year profit.　　Both Chinalco and Chinalco have begun plotting to expand into other industries to avoid hanging dead in the "aluminum" tree. Since last year, Chinalco, the largest producer of alumina and electrolytic aluminium in the country, has expanded its internal restructuring, leading to the development of aluminum and copper, rare earths, engineering, trade, resources and seven major overseas sectors.　　Last month, SASAC also approved the China Aluminum group will adjust its main business to the development of mineral resources (excluding oil and gas), non-ferrous metal smelting processing, related trade and engineering services, the internal high-level aluminum also told this reporter that the future will give priority to the development of copper block, focusing on the development of copper and potential mineral exploration upstream industries In order to accelerate the development of resources outside the aluminum, Chinalco has also established the China Aluminum Mineral Resources Co. Recently, the company also signed a strategic cooperation agreement with the China Coal Geological Engineering Corporation, which will carry out strategic cooperation in the exploration, research, development and technical services of coal resources and non coal mineral resources.　　This also means that Chinalco will enter the field of coal development.　　Chinalco also signed an agreement with Rio Tinto at the end of July, with two companies forming a joint venture to develop and operate the Simao du Pont project in Guinea.　　In this respect, in the last Friday when the reporter interviewed, Tom Albanese, Rio Tinto's chief executive, revealed that the final contract was signed from Chinalco with Chinalco in the hope of adopting Chinalco's suggestion that Chinalco's listed companies expand into more metallized companies than the aluminum industry. Profit to a small number of central enterprises to focus on the reporter noted that, similar to previous years, the central enterprises operating income and total profit again presented a centralized characteristics, and profit more than the concentration of income higher. 2009, all 129 central enterprises operating income is 12,627,160,000,000 yuan, the total profit is 815.12 billion yuan. In the 108 companies that published the data, the top 10 of the central enterprises accounted for about 48.5% of the total revenues of the central enterprises, and the top 10 of the central enterprises accounted for only about 34.9% of the total operating income of central enterprises, but their profits accounted for about 65.1% of the gross profit of the central enterprises.　　One of China Mobile accounts for the total profit of the central enterprises 18.2%.　　In particular, petroleum and petrochemical, telecommunications, automobiles, steel, electricity, coal, construction and COFCO, medium and so has a unique industry status of the business of the central enterprises have become a profit concentration area. Military, power grid, petroleum, petrochemical, telecommunications, coal, civil aviation, shipping is the state-owned capital to maintain absolute control of the industry, but the economy is still in the recovery last year, the civil aviation, shipping and other industries of the central enterprise revenue is poor.　　The 3 central air transport enterprises have just realized the increase surpluses in the global aviation industry is dismal, the competition is increasingly fierce, and 3 central water transport enterprises are in a deep decline. The remaining central enterprises in the general competitive sector, whose revenues and profits are generally inferior to those in monopoly and absolute control of the industry. In particular, some business and chemical group of central enterprises in poor revenue, and even loss. But companies that have gained advantage through competition, such as Oct group, have a gross profit margin of close to 10%, making some giant central enterprises less than they should be.