China Stock Profile – Aluminium Corporation of China Limited (ACH)1

Statistics for ACH:

P/E 7.6
Long Term EPS Growth NA
PEG Ratio NA
Net Margin 20%
Average Rating Value 4
Average Rating Sell
Average Target Price 17.21
Current Price 28.76
Year to Date Performance 113%
Institutional Ownership NA
Short Interest as % of Float NA

Explanation of Terms

P/E - Price divided by Earnings

Long Term EPS Growth - Long-Term (next 3-5 years) EPS Growth Rate estimated by Wall Street analysts
PEG Ratio – P/E to Growth Ratio. Generally the lower the ratio the more attractive the stock
Net Margin – Net Profit divided by Revenue
Average Rating Value – Based on Ratings given by Wall Street analysts. Generally, the lower the value, the
higher the rating
Average Rating – Based on Ratings given by Wall Street analysts
Average Target Price – Based on Target Price given by Wall Street analysts
Current Price – Current Market Price of stock
Year to Date Performance – Year to Date Performance in Price of stock
Institutional Ownership - % of Shares held by Large Institutions
Short Interest as % of Float – Short Interest in the stock as a % of Equity Float

Chart of ACH

ACH Company Profile

ACH is involved in bauxite mining, alumina refining, and aluminium smelting businesses in China. Its
primary products include alumina, primary aluminium, aluminium fabricated products, gallium, and carbon-
related products. Its Alumina segment is responsible for the mining and purchasing bauxite and other raw
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By H.U.
materials, refining bauxite into alumina, and selling alumina. This segment also produces and sells chemical
alumina, including alumina hydrate, alumina chemicals, and gallium. Its Aluminium segment is responsible
for procuring alumina and other raw materials, supplemental materials and electricity power, and smelting
alumina to produce primary aluminium; selling primary aluminium products; and producing and selling
carbon products and aluminium-alloy products.

The company’s Aluminium Fabrication segment engages in purchasing primary aluminium; other raw
materials; supplemental materials and electricity power; and further processing primary aluminium for the
production and sale of aluminium fabricated products, including casts, planks, screens, extrusions, forges,
powder, and die castings. ACH also provides design and consulting services; repair and maintenance
services for electrical plant and machinery; manufacturing and distributing alumina ceramic products and
electronic products; and processing and distributing non ferrous metals; alumina importing and exporting
operations. The company was founded in 2001 and is based in Beijing, China. Aluminium Corporation of
China Limited is a subsidiary of Aluminium Corporation of China.

Key Executives of ACH

Mr. Jianchuan Luo , 46

Pres, Exec. Director, Chairman of Planning & Devel. Committee and Member of Nomination Committee
Mr. Jihua Chen , 41
Chief Financial Officer, VP, Exec. Director and Vice Chairman of Disclosure Committee
Mr. Li Yuan , 51
Gen. Mang. of Corp. Culture Department and Supervisor
Mr. Xiangmin Liu , 47
VP, Exec. Director and Member of Planning & Devel. Committee
Mr. Xiong Weiping , 52
Chairman, Chief Exec. Officer, Chairman of Nomination Committee, Chairman of Implementation Committee
and Chairman of Aluminum Corp. of China

Outlook for Global Aluminium Industry

After falling 5.3% in 2001, aluminium consumption rose by an average of 7.8% each year to 2007, mainly
due to Chinese consumption, which increased by an average of 23.7% each year over the same period.
Chinese aluminium consumption is the largest in the world, having overtaken the USA in 2004, with Japan
being the third largest consuming country.

The aluminium market will start to recover in the second half of 2010, and global growth of 4 to 5%, led by
China, is possible in 2011. Average growth in the global aluminium market to 2013 will be around 2.6%
each year resulting in total demand of about 58Mt.

The LME monthly average cash price for high grade aluminium fell from record high of US$3,070/t in July
2008 to US$1,329/t in February as LME stocks increased from 1.1Mt to 3.2Mt. In 2009, aluminium prices
will probably average US$1,400 to US$1,450/t. The large stocks are expected to overhang the market until
the slide in global demand stops, which is expected in early 2010.

Alumina prices have fallen as with the price of aluminium, but power costs remain high, and prices in early
2009 were less than the expenses of many producers.

Electrical power and alumina are the most costly inputs in the production of primary aluminium. A secure,
low cost and close source of power supply is a more important than either proximity to raw materials or
markets, when deciding on a location for an aluminium smelter.

ACH Financial Statements

Income Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 9,659,307 9,929,201 7,931,250
Cost of Revenue 8,829,457 7,472,646 5,368,244

Gross Profit 829,850 2,456,555 2,563,006

Operating Expenses
Research Development 25,916 29,777 14,547
Selling General and Administrative 685,414 479,621 390,924
Non Recurring 927,625 - (72,349)
Others - - (35,790)

Total Operating Expenses - - 297,332

Operating Income or Loss (809,105) 1,947,157 2,265,674

Income from Continuing Operations

Total Other Income/Expenses Net (196,254) - (6,669)
Earnings Before Interest And Taxes (1,005,359) 1,979,887 2,259,005
Interest Expense - 87,263 111,155
Income Before Tax (1,005,359) 1,892,624 2,147,850
Income Tax Expense (24,228) 387,300 562,981
Minority Interest 6,857 (148,206) (82,265)

Net Income From Continuing Ops (974,274) 1,357,118 1,502,604

Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -

Net Income (974,274) 1,357,118 1,502,604

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares ($974,274) $1,357,118 $1,502,604

Balance Sheet PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Assets
Current Assets
Cash And Cash Equivalents 2,318,401 1,070,794 1,822,882
Short Term Investments - - -
Net Receivables 342,775 407,928 277,019
Inventory 2,822,090 1,851,667 1,157,902
Other Current Assets 614,982 267,297 38,914

Total Current Assets 6,098,248 3,597,686 3,296,717

Long Term Investments 190,842 160,721 2,330
Property Plant and Equipment 12,035,073 8,246,877 5,934,806
Goodwill 2,170,312 - 32,762
Intangible Assets 459,179 2,178,482 92,804
Accumulated Amortization 1,003,299 - -
Other Assets 115,076 43,790 334,939
Deferred Long Term Asset Charges 112,765 136,284 52,141

Total Assets 20,178,196 14,363,840 9,746,499

Liabilities
Current Liabilities
Accounts Payable 2,326,680 567,830 1,468,794
Short/Current Long Term Debt 3,136,448 1,146,071 1,293,931
Other Current Liabilities 16,716 867,781 -

Total Current Liabilities 5,479,844 2,581,682 2,762,725

Long Term Debt 5,140,425 1,942,319 1,086,703
Other Liabilities 100,037 20,330 -
Deferred Long Term Liability Charges 39,177 23,642 25,252
Minority Interest 576,635 412,563 453,760
Negative Goodwill - - -

Total Liabilities 11,336,118 4,980,536 4,328,440

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 1,982,336 1,854,041 1,492,789
Retained Earnings - - 3,488,281
Treasury Stock - - -
Capital Surplus 6,859,742 - -
Other Stockholder Equity - 7,529,263 436,989

Total Stockholder Equity 8,842,078 9,383,304 5,418,059

Net Tangible Assets $6,212,587 $7,204,822 $5,292,493

Cash Flow Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Net Income (974,274) 1,357,118 1,502,604

Operating Activities, Cash Flows Provided By or Used In

Depreciation - 631,569 448,090
Adjustments To Net Income - 77,851 (548,565)
Changes In Accounts Receivables - (37,800) (109,610)
Changes In Liabilities - (163,731) (44,466)
Changes In Inventories - (370,760) (141,478)
Changes In Other Operating Activities - (117,656) (59,665)

Total Cash Flow From Operating Activities 460,046 1,376,591 1,694,489

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures - (1,331,302) (832,202)
Investments - 329,680 26
Other Cashflows from Investing Activities - 23,582 (480,496)

Total Cash Flows From Investing Activities (3,100,503) (978,040) (1,312,672)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid - (545,286) (590,889)
Sale Purchase of Stock - (14,929) 574,425
Net Borrowings - (161,606) (82,803)
Other Cash Flows from Financing Activities - 35,944 -

Total Cash Flows From Financing Activities 3,774,812 (685,877) (99,267)

Effect Of Exchange Rate Changes - - -

Change In Cash and Cash Equivalents $1,134,355 ($287,326) $282,550

Reference

Yahoo Finance
China Analyst
“China Dominates the Global Aluminium Industry” May 22nd 2009 at www.redorbit.com