NANSHAN AL INTL (Nanshan Aluminium International Holdings Ltd.) reported sharp earnings pressure for the six months ended 30 June 2026 as global alumina prices retreated, yet strengthened its balance-sheet liquidity to fund an upcoming electrolytic aluminium expansion in Indonesia.
Financial Performance • Revenue slid 30.50 % year on year to US$415.03 million, reflecting a 39.50 % decline in average alumina selling price to US$320 per tonne. • Sales volume rose 15.00 % to 1.30 million tonnes, tempering the impact of weaker pricing. • Gross profit contracted 78.45 % to US$65.49 million; gross margin shrank to 15.8 % from 50.9 % a year earlier. • Profit attributable to shareholders fell 74.80 % to US$62.68 million; basic earnings per share dropped to US$0.10 from US$0.46. • Interim dividend declared at HK$0.16 per share, versus HK$0.65 in 1H 2025.
Balance-Sheet Highlights • Cash and cash equivalents more than doubled to US$666.75 million from US$321.30 million at end-2025, buoyed by a HK$1.99 billion (US$254.59 million) top-up placing completed in January 2026. • Net current assets improved to US$597.17 million (31 December 2025: US$388.90 million). The group remains debt-free; gearing ratio stayed at zero. • Total equity reached US$2.09 billion, up 10.0 % since year-end.
Capital Deployment • 90 % of IPO proceeds (HK$2.04 billion) earmarked for the two-million-tonne New Alumina Production Project; 70 % already spent or committed. • The January 2026 placing/subscription proceeds are reserved primarily (90 %) for the first-phase Electrolytic Aluminium Project in Indonesia, budgeted at US$436.60 million for 250,000 tpa capacity with a two-year build-out. Planning for an additional 500,000 tpa line is under way.
Market Conditions • Platts-based international alumina prices averaged US$307 per tonne in 1H 2026 versus US$447 in 1H 2025, keeping global supply in surplus. • Indonesian bauxite supply tightened due to mining quota controls, but the company diversified sourcing and leveraged local partnerships to manage input costs.
Strategic Outlook Management expects recent price recovery—average US$348 per tonne from 1 to 18 August 2026—could stabilise earnings, while the downstream move into electrolytic aluminium is projected to create a “second growth curve” and mitigate raw-material price volatility. The company continues to pursue a fully integrated aluminium value chain within Indonesia’s Galang Batang Special Economic Zone.