China Aluminum International Engineering Corporation Limited: history, ownership, mission, how it works & makes money

A Brief History of China Aluminum International Engineering Corporation Limited

China Aluminum International Engineering Corporation Limited (CHALIECO) was established in 2006 as an engineering and construction firm focused primarily on the aluminum industry. It is a subsidiary of the Aluminum Corporation of China (CHALCO), which is a state-owned enterprise and a significant player in the global aluminum market.

In 2010, CHALIECO was listed on the Shanghai Stock Exchange, marking a prominent milestone in its growth trajectory. The company trades under the ticker symbol 601068 and has since become a leader in providing comprehensive services, including project design, consulting, and management specifically for the aluminum sector.

Financial performance has shown significant growth over the years. For instance, in the fiscal year 2022, CHALIECO reported total revenue of approximately RMB 11.87 billion, with a net profit attributable to shareholders of around RMB 675 million. This was an increase from the previous year, reflecting a strong demand for aluminum and its derivatives.

The company has expanded its operations internationally, undertaking projects in various countries, including the Southeast Asian region, Africa, and South America. In 2021, it secured contracts valued at over USD 1 billion, emphasizing its international footprint and capability to handle large-scale projects.

In terms of workforce, as of 2023, CHALIECO employed over 19,000 people, showcasing its role as a significant employer in the engineering sector. The company has also invested heavily in research and development, with expenditures exceeding RMB 400 million in 2022, indicating its commitment to innovation and technological advancement.

CHALIECO continues to focus on expanding its capabilities in engineering, procurement, and construction management (EPCM) services, with a strong emphasis on sustainable practices within the aluminum industry. This is particularly vital as the global demand for environmentally friendly production processes increases.

Recent projects illustrate this shift towards sustainability, with CHALIECO involved in multiple green aluminum smelting plants aimed at reducing carbon emissions. The company has set ambitious targets to become a leader in green engineering solutions by 2025.

Furthermore, CHALIECO's strategic partnerships with international firms have positioned it to leverage innovation and advanced technologies. Collaborations with companies in the United States and Europe focus on enhancing production methodologies and minimizing environmental impact.

The outlook for CHALIECO remains positive, given the increasing global demand for aluminum products, driven by sectors such as automotive, construction, and electronics. Analysts predict a compound annual growth rate (CAGR) of approximately 6.5% in the global aluminum market through 2027, which will likely benefit CHALIECO's operations moving forward.

As the world transitions to renewable energy, CHALIECO's projects are poised to tap into the growing need for lightweight aluminum solutions in electric vehicles, further driving revenue growth in the coming years.

A Who Owns China Aluminum International Engineering Corporation Limited

China Aluminum International Engineering Corporation Limited (CHALIECO) is a prominent entity in the engineering and construction sector, primarily focused on aluminum production. CHALIECO is a subsidiary of Aluminum Corporation of China Limited (CHALCO), which is the largest producer of aluminum in China. As of 2023, CHALCO holds approximately 68.4% of CHALIECO’s equity.

Other notable shareholders include various institutional investors and state-owned enterprises. The shareholding structure of CHALIECO reflects a blend of state and private ownership, typical in Chinese publicly listed companies. The company trades on the Hong Kong Stock Exchange (HKEX) under the stock code 2068.HK.

CHALIECO reported a revenue of approximately RMB 29.45 billion for the fiscal year ending in December 2022, marking a year-on-year increase of 12.6%. The company's net profit attributable to shareholders was about RMB 1.74 billion, with a net profit margin of 5.9%.

As of the latest financial reports, the earnings per share (EPS) stood at RMB 1.02. The company's return on equity (ROE) was reported at 7.4%, indicating effective management of shareholder equity. The balance sheet reflected total assets of approximately RMB 78.91 billion and total liabilities of around RMB 58.77 billion, leading to a debt-to-equity ratio of 0.74.

In the stock market, CHALIECO has experienced fluctuations. From January to October 2023, its stock price ranged between HKD 4.85 and HKD 6.25. The company’s market capitalization as of late October 2023 stood at approximately HKD 25.9 billion.

Overall, the ownership structure, financial performance, and stock performance paint a comprehensive picture of China Aluminum International Engineering Corporation Limited's positioning in both the domestic and global aluminum sectors.

China Aluminum International Engineering Corporation Limited Mission Statement

China Aluminum International Engineering Corporation Limited (CHALCO), a subsidiary of the Aluminum Corporation of China, aims to "provide first-class engineering services in the aluminum industry, transform and innovate through advanced technologies, and achieve sustainable development." This mission reflects its commitment to excellence in engineering and service delivery.

CHALCO focuses on integrating technological advancement with sustainable practices. The company specializes in engineering design, project management, and construction in sectors like metallurgy, building materials, and environmental protection. Its mission emphasizes optimizing resources and enhancing productivity, which is crucial in the current economic climate.

Financial Performance

For the fiscal year ending December 31, 2022, China Aluminum International Engineering Corporation reported the following key figures:

CHALCO’s financial growth reflects its effective project management and engineering capabilities, aligning with its mission to deliver superior services. The company's operating margin for 2022 was approximately 7.8%, an increase from 7.4% in 2021.

Market Position

As of late 2023, CHALCO holds a leading market position in the engineering sector, particularly within the aluminum industry. The company has secured contracts valued at 10.5 billion RMB in new projects across various regions, demonstrating its capacity to execute large-scale engineering endeavors.

Sustainability Initiatives

Aligned with its mission statement, CHALCO is committed to sustainability and has implemented several initiatives, including:

• Investment of 1.5 billion RMB in green technology development in 2022.
• Reduction of carbon emissions by 12% over the past three years.
• Implementation of recycling practices that have increased material reuse by 15%.

These efforts are crucial in maintaining its leadership in the engineering sector while supporting environmental goals.

Future Outlook

Looking ahead, CHALCO's mission will guide its strategies to expand into new markets and enhance its technological capabilities. The projected revenue growth for 2023 is estimated at 10.5%, supported by anticipated increases in infrastructure spending globally.

The company aims to leverage emerging technologies to improve project efficiency and effectiveness, executing its mission to sustain its leadership position in the industry.

How China Aluminum International Engineering Corporation Limited Works

China Aluminum International Engineering Corporation Limited (CHALIECO) is a key player in the engineering and construction industry, particularly within the aluminum sector. The company specializes in providing comprehensive services including project design, engineering, and technological consultancy. Founded in 2006 and listed on the Hong Kong Stock Exchange, CHALIECO has transformed into a prominent engineering contractor.

As of the latest reports, CHALIECO reported a revenue of approximately RMB 25.36 billion for the fiscal year ending December 2022, showcasing a growth of 15.2% compared to the previous year.

The company operates through several divisions, including:

• Engineering design and consultancy
• Construction and management
• Equipment manufacturing
• Technical services

CHALIECO has established partnerships with key aluminum producers and has been involved in numerous high-profile projects, both domestically and internationally. In particular, their strong ties with China Aluminum Corporation (Chalco) bolster their market position.

Project and Financial Highlights

For 2022, CHALIECO completed over 50 major projects, which collectively generated a significant amount of revenue. The following table illustrates some of the key projects and their financials:

The company has also been focusing on sustainable practices and technological advancements. In the latest fiscal year, CHALIECO invested RMB 2.1 billion in research and development, aimed at enhancing energy efficiency in aluminum production.

Market Position and Stock Performance

As of September 2023, CHALIECO's stock price stood at HKD 5.25, reflecting a year-to-date increase of approximately 12.5%. The company's market capitalization is estimated at around HKD 25.3 billion.

CHALIECO maintains a strong financial position with a debt-to-equity ratio of 0.48, indicating manageable levels of debt relative to equity. Furthermore, the company's return on equity (ROE) for the previous year was reported at 14.7%.

In a bid to expand its footprint globally, CHALIECO has also been pursuing opportunities in regions like Southeast Asia and Africa. Their international projects highlight a strategic move towards diversifying project locations, thereby reducing dependency on the domestic market.

Overall, China Aluminum International Engineering Corporation Limited exemplifies a well-rounded approach to engineering and construction in the aluminum sector, marked by robust financial performance, strategic partnerships, and a commitment to sustainability.

How China Aluminum International Engineering Corporation Limited Makes Money

China Aluminum International Engineering Corporation Limited (CHALIECO) primarily generates revenue through engineering and construction services, with a significant focus on the aluminum industry. In 2022, the company reported total operating revenue of approximately RMB 24.97 billion (around USD 3.68 billion). The firm is involved in various segments, including engineering design, project management, and equipment manufacturing.

CHALIECO's engineering services encompass comprehensive project solutions for aluminum smelting, bauxite mining, and downstream aluminum processing. The company’s expertise in the engineering sector has been a consistent source of income, reflecting a robust order backlog. As of September 2023, the firm had an order backlog amounting to RMB 20 billion (about USD 2.94 billion), indicating strong future revenue potential.

The following table outlines the revenue breakdown by segment for the fiscal year 2022:

Moreover, CHALIECO diversifies revenue through technology services and consulting, which contribute to its overall profit margins. The company reported a gross profit margin of 15% for the fiscal year 2022, influenced by efficient project execution and cost control measures.

In recent years, CHALIECO has expanded its international footprint, securing contracts in Southeast Asia, Africa, and the Middle East. The company’s international projects accounted for approximately 30% of its total revenue in 2022. This geographical diversification helps mitigate risks associated with domestic market fluctuations.

Furthermore, the firm is keen on investing in technological innovation, particularly in aluminum recycling, which aligns with global trends emphasizing sustainability. The company's R&D expenditure reached RMB 300 million (about USD 44.5 million) in 2022, aimed at enhancing production efficiency and developing new processes.

As of the first quarter of 2023, CHALIECO reported an increase in net profit of 12% year-on-year, reflecting ongoing demand in the aluminum sector and efficient management practices. The company’s net profit for this quarter was approximately RMB 1.1 billion (around USD 162 million).

In summary, China Aluminum International Engineering Corporation Limited utilizes a multifaceted approach to revenue generation by combining its engineering expertise, project management capabilities, equipment manufacturing, and global expansion strategies. Its financial health is bolstered by a solid order backlog, a diverse revenue stream, and an unwavering commitment to innovation.