Shandong Nanshan Aluminium Co.,Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Shandong Nanshan Aluminium Co.,Ltd.

Founded in 1999, Shandong Nanshan Aluminium Co., Ltd. is a prominent player in the aluminium industry, based in Shandong Province, China. The company has developed a comprehensive production chain, from bauxite mining to the end product. Over the years, Nanshan has carved out a substantial market share, becoming one of the leading aluminium suppliers in Asia.

As of 2022, the company reported a revenue of approximately RMB 45 billion (around USD 6.9 billion), marking a significant increase from RMB 39 billion in 2021. The profit margin similarly expanded, with net income reaching RMB 3.5 billion in 2022, up from RMB 2.8 billion in the previous year. This continued growth is attributed to both domestic demand and increasing exports.

In 2001, Nanshan Aluminium expanded its production capacity, establishing itself as the largest aluminium product manufacturer in the region. The company invested heavily in technology, enhancing its smelting capacity to reach approximately 1 million metric tons annually by 2020. By the end of 2023, this capacity is expected to increase to 1.5 million metric tons as part of their ambitious expansion plan.

Nanshan Aluminium's product portfolio includes various types of aluminium products, including aluminium sheets, foils, and extrusions, serving sectors like aerospace, automotive, and construction. The company has ramped up its efforts in research and development, investing RMB 300 million in R&D in 2022 alone to innovate and improve product quality.

In 2021, Nanshan Aluminium launched its eco-friendly initiative, aiming to reduce carbon emissions by 30% by 2025. The initiative includes the installation of advanced filtration systems and the utilization of renewable energy sources to power production lines.

Internationally, Nanshan Aluminium exports to over 50 countries, including major markets in North America and Europe. This has enabled the company to diversify its revenue streams while minimizing risks associated with domestic market fluctuations.

In terms of market capitalization, as of October 2023, Nanshan Aluminium is valued at approximately USD 9 billion, reflecting investor confidence and robust operational performance. The company has been included in various indices, providing further credibility and exposure within the global market.

As of the latest reports, Nanshan Aluminium employs over 30,000 people, contributing significantly to local economies and job creation in Shandong Province. The firm also actively participates in community development initiatives, reinforcing its commitment to corporate social responsibility.

Looking ahead, the company is focused on further expanding its global footprint and enhancing its production capabilities, leveraging advancements in technology and sustainable practices to maintain its competitive edge in the aluminium sector.

A Who Owns Shandong Nanshan Aluminium Co.,Ltd.

Shandong Nanshan Aluminium Co., Ltd. is a prominent player in the aluminium industry, primarily engaged in the production and processing of aluminium products. Ownership of the company is predominantly concentrated among key stakeholders and strategic shareholders.

As of the latest available data, Shandong Nanshan Aluminium is approximately 58.5% owned by the Nanshan Group, which is a diversified conglomerate with extensive interests in various sectors, including aluminium manufacturing, aviation, and real estate.

The company's shares are publicly traded on the Shanghai Stock Exchange under the ticker symbol 600219. Institutional investors and qualified foreign institutional investors (QFIIs) also hold significant shares, which reflects a broad base of support from different sectors of the investment community.

In the year 2022, Shandong Nanshan Aluminium reported total revenue of approximately RMB 54 billion (about USD 8.4 billion), reflecting a year-on-year increase of 15%. The company’s net profit attributable to shareholders was around RMB 2.5 billion (about USD 388 million), representing a profit margin of 4.6%.

The company has been on a consistent upward trajectory, as evidenced by its growing production capacity, which reached approximately 1.5 million tonnes of aluminium products in 2022. Shandong Nanshan's strategic emphasis on innovation and sustainability has positioned it as a frontrunner in the aluminium sector, contributing to its robust financial health.

As of the end of 2022, Shandong Nanshan Aluminium’s market capitalization was approximately RMB 35 billion (about USD 5.4 billion). The company has maintained a steady dividend payout policy, with a dividend yield of around 3.0% based on the latest fiscal year results.

Shandong Nanshan Aluminium Co.,Ltd. Mission Statement

Shandong Nanshan Aluminium Co., Ltd. is committed to being a leading producer in the aluminium industry. The company's mission statement emphasizes innovation, sustainability, and customer satisfaction. The company aims to leverage advanced technology and efficient production methods to create high-quality aluminium products that meet global standards.

According to their reports, Nanshan Aluminium focuses on producing a diverse range of aluminium products, including sheets, plates, and extrusions. They strive for excellence in every aspect of their operations, from raw material sourcing to customer service, ensuring that their products not only meet but exceed customer expectations.

Nanshan Aluminium's commitment to sustainability is reflected in its ongoing investment in environmentally friendly practices. For instance, the company has been focusing on recycling aluminium, which greatly reduces the carbon footprint associated with production. In 2022, their recycling efforts resulted in a reduction of approximately 25% in energy consumption compared to previous years.

Additionally, Nanshan Aluminium's production facilities are equipped with state-of-the-art technology that optimizes resource usage. This aligns with their mission to promote sustainable development while achieving operational efficiency. As part of the company's objectives, they also align with global initiatives such as the United Nations Sustainable Development Goals, particularly in areas like climate action and responsible consumption.

To better understand their market position, Shandong Nanshan Aluminium has reported a total asset value of 35.6 billion CNY as of 2022, with a return on equity (ROE) of 12%. This financial health allows the company to continue investing in innovative technologies and expanding its product range.

In summary, Shandong Nanshan Aluminium Co., Ltd. stands firm in its mission, combining quality production with a commitment to sustainability and customer satisfaction. Their financial growth and operational strategies are a testament to their dedication to leading the aluminium industry effectively and responsibly.

How Shandong Nanshan Aluminium Co.,Ltd. Works

Shandong Nanshan Aluminium Co., Ltd. operates primarily in the production and processing of aluminum products. The company was founded in 1999 and is based in Shandong Province, China. Notably, it is one of the largest aluminum manufacturers in the country, with a production capacity exceeding 1.2 million tons of aluminum annually.

The company’s key business segments include aluminum smelting, processing, and sales, as well as the manufacture of aluminum-related products including sheets, strips, foils, and extrusions. In recent years, Nanshan Aluminium has diversified into aerospace and automotive sectors, addressing the increasing demand for lightweight materials.

According to the latest financial reports, in 2022, Shandong Nanshan Aluminium achieved a revenue of approximately RMB 36 billion (around USD 5.5 billion), marking a year-over-year growth of 12%. The company's net profit for the same year was reported at RMB 2.8 billion (approximately USD 430 million), translating to a profit margin of about 7.8%.

Shandong Nanshan Aluminium is heavily involved in research and development (R&D), spending approximately RMB 500 million (USD 76 million) annually on innovation and new product development. This investment underscores the company's commitment to enhancing production efficiency and product quality.

The company’s operations also encompass sustainable practices. In 2021, Nanshan Aluminium reported a 15% reduction in carbon emissions per ton of aluminum produced, aligning with China’s national goals for carbon neutrality by 2060. The firm has invested in cleaner technologies and energy-efficient processes, which has helped decrease operational costs.

As for market positioning, Nanshan Aluminium has established a significant presence both domestically and internationally. In 2022, international sales accounted for about 35% of the total revenue, highlighting the company’s competitive edge in the global market.

In terms of sales distribution, Nanshan Aluminium’s product line includes:

• Aluminum sheets and plates
• Aluminum strips
• Aluminum foils
• Aluminum extrusions
• Aluminum wire rods

The strategic partnerships with major companies in the automotive and aerospace sectors have fostered innovation in product applications, leading to expanded opportunities and revenue sources. Nanshan’s client roster includes notable brands in the automotive industry, contributing significantly to their overall sales.

Looking ahead, Shandong Nanshan Aluminium plans to enhance its production capabilities further by investing over RMB 1 billion (approximately USD 150 million) in new manufacturing facilities by 2025, aiming to increase production capacity to 1.5 million tons annually. This expansion reflects the anticipated growth in the aluminum market driven by infrastructure developments and increased demand in various industries.

How Shandong Nanshan Aluminium Co.,Ltd. Makes Money

Shandong Nanshan Aluminium Co., Ltd. operates in the aluminium industry, primarily engaged in the production and sale of aluminium products. The company’s revenue generation primarily stems from several key segments.

• Aluminium Production: The core of Nanshan's operations lies in producing aluminium ingots, sheets, plates, and profiles. For the fiscal year 2022, the company's revenue from aluminium production exceeded RMB 38 billion, contributing approximately 85% of total revenue.
• Aluminium Fabrication: This includes processing aluminium into custom shapes and sizes for various industries. In 2022, this segment added around RMB 5 billion to their revenue, accounting for about 11% of total earnings.
• By-products and Other Revenues: Nanshan also generates revenue from by-products and other ancillary services, which contributed roughly RMB 2 billion or 4% of the total revenue.

The company benefits from its diversified product range, which mitigates risks associated with market fluctuations in the aluminium sector. Shandong Nanshan's strategic investments in advanced manufacturing technologies enhance its operational efficiency and product quality, allowing it to maintain competitive pricing.

Shandong Nanshan Aluminium has also expanded its international footprint, exporting products to various countries, which accounted for around 25% of its total sales in 2022. The company aims to further penetrate markets in North America and Europe, where demand for high-quality aluminium products is on the rise.

In terms of operational capacity, the company possesses an annual production capacity of approximately 1 million tons of aluminium, making it one of the largest producers in China. The utilisation rate of production facilities has been consistently above 80%, demonstrating efficient operational management.

Additionally, the company’s commitment to sustainability and environmental management has become a key selling point. Investments in cleaner production technologies have not only reduced operational costs but also improved market acceptance and regulatory compliance.

The financial health of Shandong Nanshan Aluminium is reflected in its strong balance sheet, with total assets amounting to about RMB 50 billion as of December 2022. The company’s debt-to-equity ratio stands at 0.5, indicating a conservative approach to leverage, which enhances financial stability and growth prospects.

Continued innovation in product development, such as the introduction of lightweight aluminium alloys, positions Shandong Nanshan to capture emerging market trends, particularly in the automotive and aerospace sectors, where aluminium's strength-to-weight ratio is increasingly valued.

Moreover, the company has set ambitious targets for revenue growth, planning to increase annual sales by 10% over the next five years through expanded production capabilities and enhanced market presence. This aligns with China's broader economic goals of increasing domestic production and reducing reliance on imports.