Minmetals resources will continue to acquire alumi

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Minmetals resources will continue to acquire aluminum assets to strengthen its performance

Minmetals resources () announced its interim results yesterday. The company's turnover in the first half of the year was HK $4.981 billion, a year-on-year decrease of 27%; The profit was HK $451million, a year-on-year decrease of 22%. Question 1: The main motor source of the ring stiffness testing machine is not bright, and the occupancy rate of medium and high-end products is accelerated. The basic profit per share is HK $0.261. The company said that the price fluctuation of alumina and the reduction of trade volume have reduced the company's turnover and profits. In the next step, it will continue to acquire aluminum assets to maintain its profitability. 

in the company's performance report, zhouzhongxin, President of Minmetals Group and chairman of Minmetals resources, pointed out that the quantity of imported alumina decreased significantly in the first half of the year due to the increase of domestic alumina supply. Compared with the second half of last year, although alumina prices have rebounded this year, there is still a significant gap from the historical highs in the first half of last year. The price gap of alumina and the reduction of trade volume have reduced the turnover and profits of the company. 

it is understood that in the first half of the year, the domestic alumina output was about 9.4 million tons, with a year-on-year increase of more than 50%; During the period, alumina rebounded to about 3900 yuan per ton, but still far below the peak of about 6500 yuan per ton in 2006. In addition, due to the increase of domestic alumina production, the quantity of imported alumina from abroad decreased from about 3.3 million tons in the first half of last year to about 2.7 million tons at the end of June this year. 

however, Zhou Zhongxin pointed out that Minmetals resources will maintain the company's profitability in several ways. 

first, the company will use the Alcoa contract to ensure the profit margin of alumina sales. According to the data, Minmetals resources has signed a long-term alumina purchase agreement with Alcoa. From 1997 to 2027, Minmetals resources can purchase 400000 tons of alumina from Alcoa every year at the price of cost plus fee. Therefore, the company can lock in the supply of low-cost alumina. Secondly, Minmetals resources will strive to complete the acquisition of 33% equity of Guangxi Huayin Aluminum Industry Co., Ltd. from the parent company. It is understood that China, which is in the construction stage, now has an annual output of 28million cars. Silver aluminum will be engaged in mining bauxite and producing alumina, with an annual capacity of about 1.6 million tons of alumina. After the acquisition of Huayin Aluminum, Minmetals resources can reduce its dependence on imported alumina and improve the company's earnings. The other is to improve the profit margin and return of processing business. Zhou Zhongxin said that this year, Minmetals resources plans to further inject capital into Huabei aluminum, and plans to increase its shareholding in Huabei aluminum from 51% to 73.19%. The goal is to reduce the production cost through more efficient methods, so that the existing production facilities of Huabei aluminum can play a better operational effect (comprehensive benefits of Guangming, people, Xinhua news agency, etc.). 

in addition, Zhou Zhongxin also said that he planned to establish a joint venture in Jamaica to develop bauxite and alumina refining facilities. At present, the preliminary feasibility assessment is being carried out, including the quality and storage capacity of bauxite exploration. It is expected that the preliminary assessment results will be available by the end of this year. 

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