According to the Securities Times app, on November 4, Aluminum Corporation of China (02600, 601600.SH) held a third quarter earnings conference call. The operating factors that did not meet expectations include overall stable operations, an increase in aluminum oxide prices quarter-on-quarter from the second quarter, a profit increase of about 0.7 billion in the third quarter compared to the second quarter; however, aluminum sales prices dropped quarter-on-quarter and costs increased due to the rise in aluminum oxide prices, with a decrease in profit per ton by over 1000 yuan, impacting profit by about 2 billion. The coal and electricity business saw a decrease in profit quarter-on-quarter of 0.3 billion due to price reductions and maintenance. The trading business saw a decrease in profit quarter-on-quarter of 0.1 billion due to low-price stockpiling in the second quarter. At the consolidated level, there were investment gains in the second quarter from equity disposal, but none in the third quarter, resulting in a decrease of around 0.1 billion.

In terms of capital expenditure and dividend outlook, this year's investment is expected to reach around 13 - 14 billion, with projections of over 16 billion next year. There are plans for the 14th Five-Year Plan period, but the data is not very accurate. Cash flow is expected to exceed 30 billion this year, showing a relatively ample future. The company aims to further reduce the asset-liability ratio (currently over 48%) with possible arrangements of several billion annually. On the dividend front, this year the company aims to meet the regulatory guidance (not lower than 30% of net income attributable to equity holders), subsequent distributions will balance capital expenditures and debt repayments. If performance and cash flow remain strong, theoretically the dividend rate will increase, but no specific quantifiable targets have been set.

In terms of the alumina project in Guinea, the local government requires enterprises to establish alumina projects locally. Several domestic enterprises are discussing cooperation for development, but due to unresolved details required by the country and the government, the project progress is slow.

Q&A

Q1: Besides operational factors, what are the specific manifestations of other influencing factors in the third-quarter report and the outlook for subsequent impacts?

A1: In the third-quarter report, apart from operational factors, there are the following influencing factors:

1. Product pricing and cost factors

Alumina: The price increased quarter-on-quarter in the second quarter, but the growth rate was lower than that since October. However, alumina products in the third quarter still increased profits by about 0.7 billion compared to the second quarter.

Electrolytic Aluminum: The sales price decreased quarter-on-quarter in the third quarter, and due to the rise in alumina prices leading to cost increases, the profit per ton decreased by more than 1000 yuan, with an overall impact reducing profits by about 2 billion.

2. Other Business Sectors

Coal and Power Generation Business: The coal prices dropped, and maintenance arrangements were made in the third quarter, reducing profits by 0.3 billion compared to the previous quarter.

Trade Business: The early low-price alumina stocks in the second quarter exceeded expectations, but this market opportunity was not sustained. In the third quarter, the profit decreased by 0.1 billion compared to the previous quarter.

Other (Consolidated): Investment income was generated from equity disposal in the second quarter, which was not present in the third quarter, resulting in a profit decrease of around 0.1 billion.

3. One-time Items

Depreciation Period Adjustment: Qinghai and Baolun shortened the depreciation period of production lines by 1 year, leading to a profit reduction of 0.7 billion. This was due to the decision to construct new projects at the beginning of the year, the subsequent arrangement for asset elimination not being fully verified until the third quarter with further evidence. It was determined to stop the old assets' production and exit after the new project was put into operation. Due to accounting adjustments based on the latest evidence, the remaining depreciation period of assets was shortened, resulting in additional depreciation being booked and concentrated in the third quarter.

Aluminum Corporation of China Power Fund Supplementary Payment: According to the September new requirements of Inner Mongolia, Aluminum Corporation of China needs to make up for the power fund for the years 2016-2019, about 0.4 billion. This is because although the country required payment starting from 2016, Inner Mongolia did not implement it due to unclear policies at the time. This year, after the National Audit Office audit, the autonomous region requested companies to make up for it.

Hazardous Waste Remediation: With the increasing environmental requirements, some hazardous waste needs to be re-buried or treated. According to the treatment plan, there may be a one-time expense of 0.3 billion in the future, and accounting treatment has been done in the third quarter.

Shortening of Mine Depreciation Period: For some subordinate mines, due to structural adjustments in mining, the domestic ore grade has decreased, and the use of imported ore has increased. It is expected that the service life will be shortened, and the shortened depreciation period will lead to a reduction in profit of about 0.2 billion.

Future Impact Outlook:

1. Depreciation Aspect

There will still be depreciation-related expenses for Aluminum Corporation of China in the fourth quarter, but most of them have been dealt with before. The fourth quarter may only be a few tens of millions.

In Qinghai, there will be a slight impact in the fourth quarter and the first half of next year, with an overall estimated amount of about 0.3 - 0.4 billion.

2. Cost Aspect

The supplemental electrical utilities fund for aluminum packaging is a one-time payment for 2016-2019, and there will be no more in the future. Starting from 2020, payments will be made regularly according to government requirements.

The hazardous waste treatment is a one-time expense. The mining sector has incurred an additional 0.2 billion in costs this year. In the next 1-2 years, there may be annual costs of 0.1-0.2 billion. After the depreciation period is fully depreciated, there will be no further impact, and it may even become marginally positive.

Q2: Will there be a shortening of the depreciation period causing an increase in expenses after the concentrated depreciation adjustment of the depreciation period for aluminum packaging and the Qinghai project in the third quarter, in the fourth quarter to next year?

A2: In the case of aluminum packaging, there will still be related expenses in the fourth quarter. However, as most of the overall amount has already been dealt with earlier, the amount in the fourth quarter may be at the level of tens of millions.

For the Qinghai project, there will be some in the fourth quarter and the first half of next year, with the overall estimated amount likely to be around three to four billion. As costs continue to normalize, their impact will gradually become apparent. However, since there is still a certain amount of remaining depreciation period, the impact each quarter may be relatively small.

Q3: What are the reasons behind the supplemental payment of the electrical utilities fund for aluminum packaging for 2016-2019, the reasons for the previous non-payment, the current requirement for the supplemental payment, and the outlook for this impact?

A3: 1. Reasons: The policy for the electrical utilities fund required payments starting from 2016, but the national policy was not very clear at that time. Inner Mongolia Autonomous Region did not require companies to pay during the implementation process, so all aluminum electrolysis companies did not pay at that time, nor did they make provisions.

2. Reasons for previous non-payment: Mainly due to unclear policies, Inner Mongolia Autonomous Region did not require companies to pay during implementation.

3. The reason for the current request for additional payment: In September of this year, the National Audit Office audited the Inner Mongolia Autonomous Region and found issues with policy implementation. Therefore, the autonomous region is requesting companies to make up for the electricity fund payment from 2016 to 2019, which includes Aluminum Corporation of China.

4. Impact outlook: This is a one-time payment for the total of the past 4 years, amounting to 0.4 billion (approximately 0.1 billion per year). Once the payment is completed, it will end, and there will be no further payments. The company has conducted checks on enterprises with self-generated electricity and thermoelectric power, and other companies do not have this issue. From 2020 onwards, payments will be made in accordance with government requirements as part of regular cost calculations within daily operations. Specific amounts have not been specially recorded since they are already accounted for in daily business operations.

Q4: How will future costs related to the shortening of hazardous waste treatment and domestic mine service life expectancy be anticipated? Will mines incur approximately 2 billion in costs each year? Is this understanding correct?

A4: Regarding hazardous waste treatment, these are one-time costs.

In terms of mine costs, this year, due to the shortened service life of some sub-mines (such as reducing remaining depreciation life from seven to eight years to two to three years), an additional cost of 0.2 billion was incurred. In the next 1-2 years, there may be approximately 0.1-0.2 billion in additional costs annually. After 1-2 years, when the depreciation life of these mines is fully depreciated, this aspect will no longer have an impact. There may even be marginal benefits from deducting this 0.2 billion from the costs. Therefore, the understanding that mines will incur approximately 2 billion in costs each year is not entirely accurate; there may be a situation of 0.1-0.2 billion in costs annually for the next 1-2 years.

Q5: What is the scale and scope within the group of disposed assets by Aluminum Corporation of China and Qinghai Tours? What is the proportion of the check on the assets of the three mines to the entire mine assets this year?

A5: 1. Disposed assets by Aluminum Corporation of China and Qinghai Tours: Assets disposals like those of Aluminum Corporation of China and Qinghai Tours are considered legacy issues. Currently, it appears that there are no unresolved legacy assets in the group. Once the company makes new decisions, arrangements for handling old assets are immediately considered. Therefore, these are recent occurrences, and there are currently no unresolved legacy assets in the group in terms of scale and scope.

2. Mine asset check: The company has fewer enterprises with mines under its operations. This year, checks were carried out on three mines, which is essentially equivalent to conducting a full inspection of the entire company's mines. Because some mine asset arrangements were made in previous years, the overall production quality of mine assets is quite good. As for other long-term assets, it depends on whether the company will have structural adjustment arrangements in the future, which cannot be estimated at present. However, from the current stage, the company has made impairment adjustments to certain assets (e.g., mines, alumina assets) for several consecutive years, indicating good asset quality and realistic value.

Q6: After verifying the situation of the self-built power plant's electrical construction fund, will similar situations not occur again?

A6: Currently, after verifying the situation of all self-built power plants (including thermal power), based on current judgments, similar situations like the aluminum fund supplement for the years 2016-2019 will not occur again.

Q7: When the price of alumina rises, how do the price fluctuations of fine alumina, downstream acceptance, and the difference in price fluctuations with metallurgical alumina, as well as the uses of materials like high-grade and calcined alumina vary?

A7: 1. Price fluctuations of fine alumina: Classified based on types, there are around 3.9 million tons of alumina products (including non-metallurgical grade alumina, regular alumina hydroxide, calcined alumina, high-temperature alumina, wet alumina powder, white aluminum hydroxide, etc.) that rise in price along with alumina. However, around 1-1.3 million tons of fine alumina, such as high-grade and calcined alumina, do not closely follow the fluctuations in alumina prices.

2. Downstream acceptance: For products affected by alumina price fluctuations, as they are raw materials derived from alumina or alumina hydroxide, their procurement and sales are based on alumina prices, closely linked to the alumina market. As for the fine alumina products not following alumina price trends, their prices have relatively decreased due to the high alumina prices currently, but historically, these fine alumina products have been priced over 1000 RMB more than regular alumina. Once the market returns to normal, their contribution to the company will be significant.

3. Difference in price fluctuations compared to metallurgical alumina: Some fine alumina price fluctuations differ significantly from metallurgical alumina, with mentioned over 1 million tons of fine alumina not following alumina price fluctuations.

4. Uses of high-grade and calcined alumina materials: High-grade and calcined alumina materials (total and carbon-free alumina materials) are mainly used to produce artificial marble globally and in China (90% of China's artificial marble kitchen countertops are made from alumina hydroxide produced by Chalco), produce detergent powders (e.g., zeolite), make catalysts (e.g., negative wave limestone), petrochemical products (e.g., molecular sieves), and some high-end products (e.g., low-sodium microcrystalline alumina).

Q8: Looking at the alumina dimension, how is the production status and capacity profit level of existing projects? What are the prospects for the Huasheng production and reaching production goals for incremental projects? How much is the expected production volume for Huasheng?

A8: 1. 存量项目

生产情况：从氧化铝存量项目来看，按照总产能计算，产能利用率大概在90%左右，基本上可利用的产能全部投入生产。

产能利润水平：未明确提及具体的产能利润水平数值，但整体生产情况处于较高的产能利用率状态。

2. 增量项目(华生)

投产展望：广西华生项目明年一季度会进行两条生产线(2 million吨)的带料试车。

达产展望：预计二季度逐步发挥产能，到二季度可以满产。

预期产量：明年二季度两条生产线满产时产能为2 million吨，即下半年两条生产线满开后的产量为2 million吨，一季度主要是带料试车，不做具体产量展望。

Q9: 关停的产能是永久性关停吗?如果不是,其状态是人员全部遣散、设备完全拆除,还是其他状态?盈利差时无法开启,现在行业好时是否考虑启用部分生产能力?

A9: 1. Nature of capacity shutdown: The capacity shutdown is permanent, such as the eliminated processes like Chongqing branch.

2. Post-shutdown status: It is not a state where all personnel are laid off and all equipment is completely dismantled, but some have been converted for other hazardous waste treatment or coordinated with other production, with a different status than before.

3. Regarding reactivation: The consideration of not reactivating these capacities. On one hand, some equipment has been phased out, such as some sintering equipment on the mainland, making it uneconomical to transport imported ores to the mainland (such as Shanxi, Henan, etc.) due to severe domestic bauxite shortages; on the other hand, even though the industry's current situation is relatively good, considering equipment, costs, and other factors, these facilities do not need to be restarted.

Q10: Besides the slow resumption of alumina industry production capacity due to issues like removal of mines, what other considerations are there? How will the supply pattern of alumina links be next year? Will import alumina prices remain high?

A10: 1. Other considerations for the slow resumption of alumina industry production capacity

Electricity prices and indicator transfer: For electrolytic aluminum production capacity, the unopened parts may be due to issues such as electricity prices (e.g., electricity prices of 0.6 yuan) or indicator transfers, and there are hundreds of thousands of tons that have not been opened but are preparing for transfer.

Capacity maintenance period: Even if the alumina factory can operate at full capacity, there is a maintenance period. If the maintenance proportion is in cycles like 5-8% or 8-10%, basically about 10 million tons of capacity need to be stopped.

Ore supply and production line adaptability: Some domestic bauxite production companies, due to inability to obtain sufficient ore and outdated production lines that cannot be converted into production lines for imported particle size ores, result in insufficient capacity. For example, in some areas of Shanxi and Henan, although there is alumina production capacity, the actual operating rate is not high due to inadequate supply of domestic bauxite.

2. The supply structure of alumina segment will be adjusted next year.

If projects such as Huasheng in coastal areas (2 million tons), Guangtou (2 million tons), Wenfeng (2 million tons) start next year, the supply of alumina will increase.

However, there are two influencing factors: firstly, the import price of alumina depends on the international supply-demand situation. Currently, the import price of alumina is high ($730, equivalent to nearly 6000 RMB in China, domestic alumina price is at 5100 - 5200 RMB), which will guide the domestic alumina price. Secondly, the new production of domestic alumina may lead to price decline, but the high cost of bauxite may raise the cost of new production alumina, thereby supporting the price. If the price falls below the cost line of domestically produced alumina in Shanxi and Henan, some production lines without self-mined ore may shut down, leading the alumina price back to a rational state. Overall, the alumina industry will not experience severe industry-wide losses again. Aluminum Corporation of China, due to its own domestic and foreign mine supply and trade security, is bullish on the future.

3. Trend of import alumina prices: Imported alumina prices depend on the international supply-demand situation. The current price is high, and whether it will remain high in the future is uncertain. However, the international supply-demand situation will be the main influencing factor.

Q11: What is the outlook for the bauxite production in Guinea, and what are the main difficulties in expanding production? Will the bauxite production in Guinea increase by 2025?

A11: Currently, the southern region of Guinea is in normal production, and the northern region has started pre-research exploration, while internal decision-making processes are underway, with mining in the northern region on the agenda.

The current bauxite production in Guinea is basically maintained on the basis of a capacity of over 14 million tons. This is determined based on the service life of the mines, local supporting facilities, and overall domestic ore security. The company does not want to rely solely on Guinea for ore security. It actively procures ores from other countries to ensure ore diversification and smooth production, so there is no blind increase in Guinea's mining capacity.

Looking ahead to 2025, currently, there is no definite expectation of a significant increase in production. There may be a small increase, but the company still aims to maintain stability in various proportions with comprehensive assurance of various ore resources.

Is it highly possible for Wenhong Plan to achieve the expansion of production close to 5 million tons? Will the issue of Inner Mongolia Power Fund supplement payment exist in other regions?

Currently, Wenhong has a production capacity of 2 million tons, possibly producing alumina. There is a base in Jiuquan, where alumina may be transported for sintering before being supplied to Jiuquan.

The planned production capacity of close to 5 million tons (actually 4.8 million tons) will be developed in several phases. The initial phase will involve establishing and putting into operation 2 million tons, which may extend to the second half of next year.

Regarding the issue of supplement payment for the Inner Mongolia Power Fund, this is a government action. It is not clear whether supplement payment situations exist in other regions, but the company has instructed all enterprises to investigate whether there are any arrears caused by situations where national policies were in place but local governments did not collect payments.

From the perspective of the company, the main self-owned power plants are mainly in Inner Mongolia's Baoli Aluminum company, while other thermal power plants have comparably lower electricity generation capacities.

If the production lines of domestic alumina plants previously using domestic ore are to be transformed to use imported ore, what would be the cost input and unit cost level?

Taking Shanxi as an example, the old alumina plants or outdated production lines of alumina plants may mostly not be suitable for transformation from using domestic bauxite ore to imported ore. If such transformation is feasible, it would have been done earlier.

If a new production line using imported bauxite ore is established, it would be faster than transformation, but the investment would require one to two years. Given the rapid changes in the alumina market, this poses decision-making difficulties for alumina plant owners.

Furthermore, the old alumina production lines are mainly located in the mainland, and after reconstruction, there are significant risks. The differences in nature between foreign and domestic mines are large, with a large amount of work needed for the transformation. The freight cost is just over 100 yuan more expensive, and once the price drops, the competitiveness of mainland production lines is weaker. Compared to coastal areas, for every 3 tons of bauxite produced, there will be a cost difference of 500 yuan per ton of alumina. Similar risks also exist in the Shanxi and Henan regions, where approximately 2-3 tons of bauxite are needed for each ton of alumina. The transportation cost from the port to mainland enterprises is roughly over 100 yuan per ton of bauxite.

Q14: What are your thoughts on the increase in overseas bauxite (especially from Guinea)? How do you view the short-term and long-term impacts of Guinea and the UAE's bauxite due to the inability to transport output due to river cleaning fees?

A14: The marketing department's view on the increase in overseas bauxite (especially from Guinea) is as follows: The issue in the UAE's Gea affected the export of approximately 12 million tons of bauxite, which has not been resolved to this day. This has caused alumina prices to rise to nearly 5000 yuan due to concerns about bauxite supply issues, making imports even more expensive.

This incident has sounded the alarm for the industry chain to ensure a stable supply. Regarding Guinea's bauxite, the company needs to have its own reasonable and legal channels for procurement.

At the same time, it is necessary to explore the supply of bauxite in other regions such as Southeast Asia, Australia, South America, and other African countries to avoid putting all eggs in one basket.

The company will closely monitor any events throughout the entire industry chain from now on for their impact on the overall industry chain. Issues with bauxite supply and events like the closure of the alumina plant in Australia can drive up alumina and even aluminum prices. Therefore, more attention should be paid to the company's ability to ensure the supply of the entire industry chain and risk management.

Q15: How do you view the prospects of increased output of bauxite from Guinea, Indonesia, and domestic restricted bauxite production? Why may bauxite be available earlier next year?

A15: On the level of increased bauxite output, the prospects for the quantity of bauxite from Guinea, Indonesia, and domestically restricted are relatively tight.

For example, domestic production restrictions have affected the 4.8 million tons of production capacity of Chongqing Guosai alumina plant, and the 4.8 million tons of production capacity of Wenfeng alumina plant. Although the supply of bauxite may only be around one to two million tons, it is quite difficult for them to obtain several million tons of bauxite.

As for predicting that bauxite may be in shortage earlier next year, it is because with the new investment in coastal areas of seven to eight million tons of alumina, currently there is a demand for 6 million tons of bauxite, which needs to be obtained from places like Guinea or Australia. This would require an increase in bauxite supply by two to three million tons or even more than 30 million tons, making it more challenging than the current 10 million tons to procure.

Therefore, it can be determined that the cost of bauxite next year will be higher, and the price of alumina will not decrease due to cost issues, as even a slight market fluctuation may push up the price of alumina.

Q16: What are the new developments and plans of Aluminum Corporation of China in bauxite and other resources? Is it possible for domestic mines that ceased production this year to resume operations? How significant is the scale of mines that may permanently disappear due to not being reopened? Which aspects and issues do environmental inspections primarily focus on?

A16: In terms of bauxite and other resources, Aluminum Corporation of China is still in the very preliminary stage of overseas resource acquisition, seeking opportunities abroad but progressing slowly; domestically, the main focus is on expansion and acquisition of existing mining rights, as there are currently no large areas of bauxite resources available domestically.

Regarding the mines that ceased production in China this year, most of those under environmental control and inspection have resumed operations, but those that do not meet the conditions find it relatively difficult to restart due to strict inspections in various regions.

As for the scale of mines that may permanently disappear if not reopened, for Aluminum Corporation of China itself, it is not very significant, accounting for about ten percent; reasons for not reopening include land acquisition issues, land use nature, and so on. There are cases where private mines do not meet safety and environmental conditions but have not been surveyed.

The main aspects and issues of environmental inspections are as follows: for open-pit mines, during the mining process, remediation is carried out alongside extraction. Large enterprises typically conduct comprehensive revegetation after full extraction, while some small mines perform poorly in this regard. Additionally, inspections are conducted using drones and satellite images to observe remediation spots. Some mines have been found to exceed boundaries in mining activities, as the country has specific delineations for arable and forest land. Small mines may have unclear or non-standard mining practices near boundaries, and the exact quantity is not completely recorded in various regions. Through various channels, efforts are being made to rectify these irregular practices, leading to significant changes in mine production levels.

Q17: Previously mentioned that aluminum corporation of china has about 10% of aluminum ore reserves that have not been developed, is it referring to shanxi or henan, or nationwide? The performance conference the day before yesterday mentioned whether there is a deviation in understanding between the time when Huasheng's production and trial run will start, and the second quarter production mentioned now.

A17: The previously mentioned undeveloped aluminum ore reserves of aluminum corporation of china account for about ten percent of the total, referring to the entire country. Regarding Huasheng, during the performance conference the day before yesterday, it was mentioned that if everything goes smoothly, production and trial run may start in three months from now, but this is under ideal conditions.

Regarding Huasheng, during the performance conference the day before yesterday, it was mentioned that if everything goes smoothly, from now on it may take three months for production and trial run to start, but this is under ideal conditions.

Under normal circumstances, the first quarter of next year is for material input production, but not at full capacity. There will be 2-3 months of trial production time, so usually full production can be achieved by the second quarter, and normal full capacity production will start in the second half of next year.

Although there are individual equipment units currently undergoing trial runs faster than expected, the overall timeline must still be controlled according to the expected schedule, considering unpredictable external factors like southern typhoons. Of course, if next year goes smoothly, it might be ahead of schedule, but it's difficult to predict at the moment, so the situation is being explained according to the expected timeline.

Q18: After the first quarter's material input trial run is completed, how long does it take to ramp up to full production in the second quarter for Huasheng?

A18: The Huasheng project has a total capacity of 2 million tons, and having both lines operational signifies the basic handover of the project to production. After the material input trial runs are completed on both lines, it will take approximately two months to reach full production capacity.

Q19: At what historical level are beer ore and alumina inventories? How does the international bauxite inventory of 2-3 months compare with previous periods?

In terms of domestic bauxite inventory, the company's principle is to use what can be mined for production, so there is basically no issue of excessive or insufficient inventory.

There is currently no inventory in the alumina plant. For every ton produced, one ton is sent out. The average inventory of China Aluminum's own electrolytic aluminum plant is around 5-6 days, which is much lower compared to the usual half-month inventory, so alumina is relatively tight.

The international bauxite inventory situation is around 2-3 months, which is not particularly high compared to the same period in previous years. It is considered a normal level, but in reality, it should be higher.

Regarding the 4.2 billion increase in operating costs, how to differentiate the accounting treatment of replenishment and impairment in costs and expenses?

With the 4.2 billion increase in operating costs, apart from some normal items, there are probably one-off special items of around tens of billions.

Regarding the differentiation of replenishment and impairment in costs and expenses, if the assets are expected to continue to operate in the future but the future benefits are insufficient, conducting impairment tests is a valuation issue. On the other hand, Baosteel and Qinghai have shortened their service lives compared to the initial estimates. According to the accounting standards, depreciation period adjustments are made based on the latest information. The depreciation measurement after the adjustment of the depreciation period, just like the daily provision for depreciation related to production and operation, is in the costs. These two are different issues.

How are the prospects for capital expenditures and dividends in the coming years?

Regarding capital expenditures, the investment this year is expected to be approximately 13-14 billion, with plans for increased investment next year, possibly exceeding 16 billion. There are plans for the 14th Five-Year Plan, but the data for the subsequent years are not very accurate.

From the perspective of dividends, this year will first meet the guidelines of the Securities Regulatory Commission, that is, the dividend of listed companies shall not be less than 30% of the net profit attributable to the parent company. Subsequent years will be balanced overall based on capital expenditures and debt repayment.

The company's current operating cash flow has reached over 30 billion at the level of this year, and the overall situation in the future will not be poor, with cash flow being relatively abundant.

After meeting the needs for deleveraging (the current asset-liability ratio has reached around 48, at a good level, and planning to reduce a few more points later, with an annual arrangement of tens of billions based on factors such as market interest rates), investments (such as over 130 to 14 billion this year, around 15 - 16 billion next year, adjusted annually based on actual circumstances), the remaining cash is relatively ample.

In terms of dividend ratio, this year needs to meet the guidelines of the exchange. If performance and cash flow are maintained at a good level in the future, theoretically, the dividend ratio will increase. However, the company currently does not have a particularly specific quantifiable target.

Q22: What are the plans and prospects for Aluminum Corporation of China's alumina in the Guinean mine?

A22: Guinea has requirements for creating alumina projects when investing in local mining enterprises. For the alumina project of Aluminum Corporation of China in the Guinean mine, several domestic companies are currently discussing cooperation for joint development. However, due to some details not reaching a consensus regarding national and governmental requirements, the project is progressing relatively slowly.