Chinalco's first half of the year's recovery in debt rate of four years record

Although the Chinese aluminum industry (601600.　　SH,02600.HK the first quarter to achieve the goal of profitability, but the good days did not last long, the loss of two quarters again hit.　　In the first half of the year, the company's operating income was 59.778 billion yuan, an increase of 113.61% per cent, and a net profit of 531 million yuan, with a sharp rise in profits compared with a loss of 3.499 billion yuan a year earlier, the Chinese aluminum industry reported today. Although Chinalco's performance was good in the first half of the year compared with last year, it began to lose again in the two quarter, compared to the first two quarters of the year. In the first quarter of this year, its ownership of the parent company's net profit was 627 million yuan, a sharp increase of 133.19%.　　That means a loss of about 96 million yuan in the second quarter. The second quarter of the loss was due to the market again into pessimism. United Metals analyst Wang Liyun told the first financial daily, the first half of this year, the aluminum market has been volatile, showing a downward trend. Since April late in the beginning of the bad factors in the aluminum market, the domestic aluminum market fell, supply surplus, the renminbi appreciation and domestic real estate control policies, such as negative factors to maintain the weak, spot aluminum prices to 13815 yuan/ton of low.　　The market for the European debt crisis in early June due to the speculation gradually cooling, aluminum city to stabilize rebound.　　In the first half, aluminum electrolytic aluminum external sales volume of 2.5415 million tons, an increase of 804,200 tons; electrolytic aluminum external sales average price of 13575 yuan/ton, an increase of 24.84%. Can this price support its net profit of 531 million yuan?　　Le Yukung, an international analyst at BOC, said in a study published on June 11 that the average production cost of domestic aluminum smelting enterprises is 15300 yuan/ton, at the time of writing the report of the aluminum price (14,000 yuan/ton), about half of the aluminum smelting enterprises are in a loss. In his view, the production cost of aluminum in China is 15500 yuan/ton, its alumina and electrolytic aluminum production costs are in the high-end industry.　　According to this calculation, Chinalco's first half electrolytic aluminum 13575 yuan/ton of average price may lead to huge losses. The company made a count of the decline in inventories. The announcement indicated that, as at June 30, the depreciation of the inventories it held should have been set at a price of $363 million, which was increased by $289 million compared with the 74 million yuan at the end of 2009.　　Chinalco believes that this was mainly due to the fact that the net realizable value of the inventory held at the end of the reporting period was lower than the carrying amount of the inventory, and that the stock price was prepared at $297 million in the current issue, and that a 8 million yuan was prepared for resale in the current period as a result　　If there were no other income, Chinalco would earn less than 531 million yuan. China's aluminum industry said that the first half of the non-recurrent profit and loss of 289 million yuan, which is mainly held trading financial assets, trading financial liabilities arising from fair value gains and losses, as well as the disposal of trading financial assets, tradingThe financial liabilities and the investment income of the financial assets available for sale are 335 million yuan, the government subsidy income is 67 million yuan, the non recurrent profit and loss effect income tax is 98 million yuan, and the non-recurrent profit and loss attributable to minority shareholders is 28 million yuan. Chinalco is planning to make a turnround this year, but it does not seem to be optimistic. May, the National Development and Reform Commission abolished the electrolytic aluminum and other industries preferential price, will limit the price of the enterprise tariff increase from the current 0.05 yuan per degree to 0.10 yuan.　　This allows domestic electrolytic aluminum costs to rise again.　　Credit Securities analyst Heng Kun, with aluminum prices, alumina prices fall, as well as the cancellation of preferential electricity prices, the second half of China's aluminum industry is expected to face a fall in profitability, and may appear single quarterly losses. The further rise in the asset-liability ratio of China's aluminium industry has been a cautionary tale. In the first half, Chinalco's asset-liability ratio was 60.25% per cent, up 1.74% per cent compared with 58.51% in late 2009, the highest in nearly 4 years.