Tianshan Aluminum Group Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Tianshan Aluminum Group Co., Ltd.

Tianshan Aluminum Group Co., Ltd., founded in 2000, is headquartered in Xinjiang, China. The company has established itself as one of the leading aluminum manufacturers in the region, primarily focusing on the production and processing of aluminum products.

By 2018, Tianshan Aluminum reported revenues of approximately RMB 12.7 billion (around USD 1.85 billion), reflecting a growth trajectory spurred by an increasing demand for aluminum in various industries, including construction, transportation, and packaging.

In a strategic move, Tianshan Aluminum increased its production capacity significantly. As of the end of 2020, the company had an annual production capacity of over 1 million tons of aluminum products, positioning itself as a major player in both domestic and international markets.

The company went public in 2010 on the Shenzhen Stock Exchange under the ticker symbol 002852. Tianshan Aluminum’s initial public offering (IPO) raised around RMB 1.5 billion, which facilitated further expansion and modernization of its facilities.

In terms of profitability, Tianshan Aluminum achieved a net profit of RMB 1.1 billion in 2020, demonstrating a robust growth rate of 23.5% from the previous year. This profitability is partly attributed to the surge in aluminum prices, which averaged around USD 2,000 per ton in 2020.

Environmental sustainability has also been a focus for Tianshan Aluminum. The company has invested heavily in eco-friendly technologies, resulting in a reduction of carbon emissions by 20% over the past five years. Its commitment to sustainability aligns with China's broader environmental goals and has improved its brand reputation.

As of late 2022, Tianshan Aluminum Group reported a market capitalization of approximately RMB 45 billion (around USD 6.6 billion), with shares trading at approximately RMB 9.50 per share. This performance reflects investor confidence amid a recovering aluminum market.

With ongoing expansions and a focus on innovation, Tianshan Aluminum continues to enhance its competitive edge. The company has announced plans to double its production capacity by 2025, aiming to meet the growing domestic and international demand for aluminum products.

A Who Owns Tianshan Aluminum Group Co., Ltd.

Tianshan Aluminum Group Co., Ltd. operates primarily in the aluminum industry in China, specializing in the production and supply of aluminum products. As of October 2023, the major shareholders and ownership structure of Tianshan Aluminum is as follows:

The company is listed on the Shanghai Stock Exchange under the stock code 601600. According to its annual report for the fiscal year ended December 31, 2022, Tianshan Aluminum reported a total revenue of approximately RMB 40.5 billion, reflecting a growth of 10.3% year-over-year. The net profit attributable to shareholders was around RMB 2.9 billion, an increase of 8.1% compared to the previous year.

In terms of market capitalization, as of October 2023, Tianshan Aluminum's market capitalization is approximately RMB 65 billion. The company produced 1.5 million metric tons of aluminum products in the last fiscal year, maintaining its position as one of the leading aluminum manufacturers in China.

On the governance side, the Board of Directors is composed of 9 members, with representatives from major investors including Inner Mongolia Yunnan Investment Group and China Minmetals Corporation. This diverse ownership structure allows for a blend of strategic direction and operational oversight while promoting shareholder interests.

Furthermore, Tianshan Aluminum's debt-to-equity ratio stands at 0.65, indicating a balanced approach to leveraging its financial structure. The company maintains a strong cash position with total cash and cash equivalents reported at RMB 5.2 billion in the latest financial disclosures.

Tianshan Aluminum Group Co., Ltd. Mission Statement

Tianshan Aluminum Group Co., Ltd. focuses on the production and processing of aluminum products, adhering to its mission of providing high-quality products, innovative solutions, and sustainable development within the aluminum industry. The company aims to be a leader in the global aluminum market by leveraging advanced technology and promoting environmental sustainability.

Key elements of the company's mission statement include:

• Commitment to quality: Striving for superior aluminum products meeting international standards.
• Innovation: Investing in research and development to enhance production efficiency and product performance.
• Sustainability: Emphasizing eco-friendly practices within its operations.
• Customer-centric approach: Delivering tailored solutions to meet diverse client needs.

In 2022, Tianshan Aluminum reported operating revenues of approximately RMB 12.56 billion. Their total assets reached around RMB 27.39 billion, reflecting robust growth in production capabilities and market expansion.

The company's commitment to sustainability includes a plan to reduce carbon emissions by 20% by 2025, underpinning Tianshan Aluminum's goal of fostering an eco-friendly operational model. Furthermore, the company has implemented various waste recycling initiatives, achieving a recycling rate of approximately 85% for production waste in the last fiscal year.

With a workforce exceeding 5,000 employees, Tianshan Aluminum invests in ongoing training and development, ensuring that its staff is well-equipped to meet evolving industry demands and promote innovative practices in aluminum production.

In terms of market performance, Tianshan Aluminum's stock has shown steady growth, with a price increase of approximately 25% over the last year, reflecting investor confidence in its strategic direction and operational efficiency.

How Tianshan Aluminum Group Co., Ltd. Works

Tianshan Aluminum Group Co., Ltd., a key player in the aluminum industry, operates primarily in China. The company is engaged in the production and sale of various aluminum products, including primary aluminum, aluminum alloy products, and aluminum processing products. As of the latest reports in 2023, Tianshan has a production capacity of approximately 2.5 million tons of aluminum per year.

The operational structure includes several subsidiaries focusing on various segments, such as bauxite mining, aluminum smelting, and downstream processing. Utilizing an integrated business model, Tianshan focuses on optimizing the entire aluminum value chain from raw material extraction to final product manufacturing.

In 2022, Tianshan Aluminum Group reported a revenue of approximately RMB 36.2 billion (around $5.6 billion) and a net profit of RMB 3.1 billion (about $485 million). The company has consistently shown growth in both revenue and profit margins over the past several years, with a year-on-year revenue growth rate of 12.5%.

Tianshan Aluminum has positioned itself strategically in the market through significant investments in technology and production efficiency. The company has implemented advanced smelting technologies that enhance energy efficiency, resulting in a reduction in per-ton production costs by approximately 8% between 2021 and 2022.

In terms of market presence, Tianshan Aluminum ranks among the top three aluminum producers in China. The company primarily supplies to sectors such as construction, transportation, and electrical equipment manufacturing. It holds a market share of approximately 15% in the domestic aluminum market.

Moreover, Tianshan has been actively expanding its international footprint. As of July 2023, the company established joint ventures in Southeast Asia, enhancing its ability to serve growing markets and diversify its revenue streams. The international sales contributed approximately 20% to its total revenue in 2022.

In the context of environmental sustainability, Tianshan Aluminum is invested in carbon capture technologies and has committed to achieving carbon neutrality by 2030. This initiative is in alignment with China's broader goals for reducing carbon emissions, providing Tianshan with a competitive edge as industries move toward more sustainable practices.

The company's stock is traded on the Shenzhen Stock Exchange under the ticker symbol 002302. As of late September 2023, the stock price has fluctuated between RMB 10.50 and RMB 12.30, reflecting broader market conditions and investor sentiment regarding the aluminum sector.

Given the global demand for aluminum, driven by its use in electric vehicles and renewable energy technologies, Tianshan Aluminum Group is well-positioned to capitalize on these trends. The company’s focus on innovation, cost management, and environmental responsibility suggests a robust growth trajectory in the coming years.

How Tianshan Aluminum Group Co., Ltd. Makes Money

Tianshan Aluminum Group Co., Ltd., a leading producer of aluminum products in China, generates revenue primarily through the manufacturing and sale of aluminum ingots, aluminum plates, and other aluminum-related products. The company capitalizes on the growing demand for aluminum in various industries, including automotive, construction, and packaging.

In 2022, Tianshan Aluminum reported total revenue of approximately RMB 19.5 billion, which marked a year-on-year increase of 15%. This growth was driven by an increase in production capacity and higher demand for aluminum products globally.

The company operates through several business segments:

• Production of Aluminum Ingots.
• Manufacturing of Aluminum Sheets and Plates.
• Processing and Trading of Aluminum Products.

As of the third quarter of 2023, Tianshan’s production capacity for aluminum ingots reached 1.5 million tons annually, and the company reported an average selling price of RMB 14,500 per ton for its primary products.

The following table summarizes Tianshan Aluminum’s financial performance and its revenue streams for the fiscal year 2022:

Tianshan Aluminum’s cost structure is also noteworthy. The company reported a gross margin of 18% in 2022, highlighting effective cost management despite fluctuations in raw material prices. The primary costs consist of aluminum ore, energy, and labor.

In response to rising global aluminum prices, which were influenced by increased demand and supply chain constraints, Tianshan has adopted a strategy to enhance production efficiency and reduce costs further. In H1 2023, the average global aluminum price was approximately USD 2,450 per ton, affecting the company’s pricing strategies.

Tianshan Aluminum actively invests in technology and innovation to improve production processes. In recent years, the company allocated approximately RMB 500 million for research and development to enhance product quality and expand its product line.

Furthermore, Tianshan maintains strategic partnerships with various industries, ensuring a steady customer base and diversified revenue streams. Major clients include leading automotive manufacturers and construction companies, which significantly contribute to its sales growth.

As a publicly traded entity, Tianshan Aluminum’s shares are listed on the Shenzhen Stock Exchange, with a market capitalization of approximately RMB 25 billion as of October 2023. The stock has seen a year-to-date increase of 40%, reflecting market confidence in its growth potential.