Nanshan Aluminium International (2610) H2 2025 earnings summary

Executive summary

• Revenue rose 11.9% year-over-year to US$1,141.8 million, driven by a 22.5% increase in alumina sales volume despite an 8.7% drop in average selling price.

• Gross profit fell 7.5% to US$478.0 million, with gross margin declining from 50.6% to 41.9% due to lower prices and higher raw material costs.

• Net profit decreased 8.6% to US$418.1 million, mainly from margin compression and a 41.4% rise in income tax expense linked to Pillar Two global minimum tax rules.

• Basic EPS dropped to US$0.72 from US$0.94 year-over-year.

• Final dividend of HK$0.41 per share proposed, with a full-year dividend of HK$1.06 per share.

Financial highlights

• Revenue: US$1,141.8 million (+11.9% YoY); sales volume: 2,643,000 tons (+22.5% YoY); average selling price: US$432/ton (-8.7% YoY).

• Gross profit: US$478.0 million (-7.5% YoY); gross margin: 41.9% (down from 50.6%).

• Net profit: US$418.1 million (-8.6% YoY); profit attributable to equity holders: US$408.4 million (+1.6% YoY).

• Other net income nearly doubled to US$32.5 million, mainly from asset disposals and higher interest income.

• Cash and cash equivalents: US$321.3 million (down from US$454.2 million); no borrowings.

Outlook and guidance

• Alumina market faces near-term price pressure; average international price fell from US$535/ton (Q1 2025) to US$391/ton (FY2025), with further decline to US$307/ton by mid-March 2026.

• Revenue and profitability expected to be impacted in H1 2026 due to lower prices.

• Medium/long-term growth to be driven by vertical integration into electrolytic aluminium, with a 250,000-ton project starting in 2026 and plans for further expansion.