Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Entity Central Index Key | 0001161611 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2020 |
Entity Registrant Name | ALUMINUM CORP OF CHINA LTD |
Title of 12(b) Security | American Depositary Shares* |
Trading Symbol | ACH |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
Domestic Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 13,078,706,983 |
H Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,943,965,968 |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Non-current assets | |||
Intangible assets | $ 2,061,043 | ¥ 13,448,304 | ¥ 13,764,460 |
Property, plant and equipment | 15,423,472 | 100,638,000 | 103,408,976 |
Investment properties | 245,498 | 1,601,876 | 1,503,266 |
Right-of-use assets | 2,189,707 | 14,287,838 | 15,890,437 |
Investments in joint ventures | 517,173 | 3,374,553 | 3,385,582 |
Investments in associates | 1,405,887 | 9,173,410 | 9,512,401 |
Other financial assets measured at fair value | 233,977 | 1,526,703 | 2,239,251 |
Deferred tax assets | 227,009 | 1,481,235 | 1,522,729 |
Other non-current assets | 485,198 | 3,165,920 | 3,208,922 |
Total non-current assets | 22,788,964 | 148,697,992 | 154,436,024 |
Current assets | |||
Inventories | 3,043,181 | 19,856,754 | 19,515,641 |
Trade and notes receivables | 1,424,247 | 9,293,218 | 7,419,218 |
Other current assets | 973,061 | 6,349,220 | 9,178,799 |
Other financial assets measured at fair value | 2,653 | 17,311 | 3,503,175 |
Restricted cash and time deposits | 161,845 | 1,056,037 | 1,305,781 |
Cash and cash equivalents (excluding bank overdrafts) | 1,476,039 | 9,631,152 | 7,778,853 |
Total current assets | 7,081,026 | 46,203,692 | 48,701,467 |
Total assets | 29,869,990 | 194,901,684 | 203,137,491 |
Equity attributable to owners of the Company | |||
Share capital | 2,608,839 | 17,022,673 | 17,022,673 |
Other equity instruments | 687,575 | 4,486,429 | 5,487,104 |
Other reserves | 5,297,242 | 34,564,504 | 34,369,802 |
Accumulated losses | (266,911) | (1,741,596) | (2,207,600) |
Equity attributable to owners of the parent | 8,326,745 | 54,332,010 | 54,671,979 |
Non-controlling interests | 2,580,798 | 16,839,706 | 16,085,487 |
Total equity | 10,907,543 | 71,171,716 | 70,757,466 |
Non-current liabilities | |||
Interest-bearing loans and borrowings | 8,815,034 | 57,518,097 | 59,243,563 |
Other non-current liabilities | 329,128 | 2,147,558 | 2,220,620 |
Deferred tax liabilities | 220,243 | 1,437,087 | 1,712,739 |
Total non-current liabilities | 9,364,405 | 61,102,742 | 63,176,922 |
Current liabilities | |||
Trade and notes payables | 2,366,415 | 15,440,859 | 12,608,806 |
Other payables and accrued liabilities | 1,648,123 | 10,754,008 | 12,415,608 |
Contract liabilities | 214,458 | 1,399,339 | 1,638,826 |
Financial liabilities at fair value through profit or loss | 4,090 | 26,684 | 805 |
Income tax payable | 45,832 | 299,053 | 252,454 |
Short-term interest-bearing loans and borrowings | 5,319,124 | 34,707,283 | 42,286,604 |
Total current liabilities | 9,598,042 | 62,627,226 | 69,203,103 |
Total liabilities | 18,962,447 | 123,729,968 | 132,380,025 |
Total equity and liabilities | 29,869,990 | 194,901,684 | 203,137,491 |
Net current liabilities | 2,517,016 | 16,424,000 | 20,501,636 |
Total assets less current liabilities | $ 20,271,948 | ¥ 132,274,458 | ¥ 133,934,388 |
CONSOLIDATED STATEMENT OF PROFI
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2020CNY (¥)¥ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018CNY (¥)¥ / shares | |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||
Revenue | $ 28,504,866 | ¥ 185,994,253 | ¥ 190,215,398 | ¥ 180,350,912 |
Cost of sales | (26,447,719) | (172,571,364) | (178,068,129) | (167,110,215) |
Gross profit | 2,057,147 | 13,422,889 | 12,147,269 | 13,240,697 |
Selling and distribution expenses | (223,303) | (1,457,056) | (1,675,869) | (2,499,394) |
General and administration expenses | (637,077) | (4,156,940) | (3,971,895) | (3,980,462) |
Research and development expenses | (219,779) | (1,434,056) | (940,828) | (626,873) |
Impairment losses on property, plant and equipment | (63,884) | (416,841) | (259,354) | (46,484) |
Impairment losses on investments in joint ventures | (216,953) | |||
Impairment losses on financial assets | (150,013) | (978,834) | (171,016) | (107,956) |
Other income | 21,387 | 139,551 | 84,611 | 135,367 |
Other gains, net | 138,524 | 903,872 | 1,247,509 | 925,100 |
Operating profit | 923,002 | 6,022,585 | 6,460,427 | 6,823,042 |
Finance income | 34,777 | 226,921 | 261,193 | 492,322 |
Finance costs | (677,476) | (4,420,528) | (4,921,541) | (4,882,692) |
Finance costs, net | (642,699) | (4,193,607) | (4,660,348) | (4,390,370) |
Share of net profits of investment accounted for using the equity method | ||||
Joint ventures | 27,663 | 180,502 | 270,115 | (199,452) |
Associates | 22,335 | 145,737 | 48,767 | 39,335 |
Total | 49,998 | 326,239 | 318,882 | (160,117) |
Profit before income tax | 330,301 | 2,155,217 | 2,118,961 | 2,272,555 |
Income tax expense | (89,224) | (582,188) | (628,376) | (826,366) |
Profit for the year | 241,077 | 1,573,029 | 1,490,585 | 1,446,189 |
Profit attributable to: | ||||
Owners of the Company | 113,564 | 741,004 | 853,102 | 709,397 |
Non-controlling interests | $ 127,513 | ¥ 832,025 | ¥ 637,483 | ¥ 736,792 |
Basic and diluted earnings per share for profit attributable to ordinary shareholders of the Company (expressed in RMB per share) | (per share) | $ 0.0043 | ¥ 0.028 | ¥ 0.037 | ¥ 0.034 |
profit for the year | $ 241,077 | ¥ 1,573,029 | ¥ 1,490,585 | ¥ 1,446,189 |
Available-for-sale investments: | ||||
Exchange differences on translation of foreign operations | 24,982 | 163,008 | (32,323) | (120,756) |
Equity investments designated at fair value through other comprehensive income: | ||||
Changes in fair value of financial assets measured at fair value through other comprehensive income | (6,731) | (43,920) | 57,815 | (15,491) |
Income tax effect | 470 | 3,066 | (14,642) | 3,769 |
Share of other comprehensive income of associates and joint ventures accounted for using the equity method | (387) | (2,522) | ||
Other comprehensive income for the year, net of tax | 18,334 | 119,632 | 10,850 | (132,478) |
Total comprehensive income for the year | 259,411 | 1,692,661 | 1,501,435 | 1,313,711 |
Attributable to: | ||||
Owners of the parent | 132,125 | 862,119 | 863,702 | 577,558 |
Non-controlling interests | 127,286 | 830,542 | 637,733 | 736,153 |
Total comprehensive income for the year | $ 259,411 | ¥ 1,692,661 | ¥ 1,501,435 | ¥ 1,313,711 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ¥ in Thousands, $ in Thousands | Attributable to owners of the CompanyCNY (¥) | Share capital (Note 17)CNY (¥) | Share premiumCNY (¥) | Other capital reservesCNY (¥) | Statutory surplus reserveCNY (¥) | Special reserveCNY (¥) | Fair value reserveCNY (¥) | Other equity instrumentsCNY (¥) | Foreign currency translation reserveCNY (¥) | Accumulated lossesCNY (¥) | Non-controlling interestsCNY (¥) | USD ($) | CNY (¥) |
Adjustment due to business combinations under common control (Note 39) | ¥ 8,306 | ¥ 3,000 | ¥ 5,306 | ¥ 17,402 | ¥ 25,708 | ||||||||
Balance at Jan. 01, 2018 | 39,613,258 | ¥ 14,903,798 | 18,830,833 | ¥ 952,878 | ¥ 5,867,557 | ¥ 146,934 | ¥ 17,671 | ¥ 2,019,288 | ¥ 335,276 | (3,460,977) | 26,055,044 | 65,668,302 | |
Balance at December 31 | 39,604,952 | 14,903,798 | 18,827,833 | 952,878 | 5,867,557 | 146,934 | 17,671 | 2,019,288 | 335,276 | (3,466,283) | 26,037,642 | 65,642,594 | |
Profit for the year | 709,397 | 709,397 | 736,792 | 1,446,189 | |||||||||
Other comprehensive income for the year | |||||||||||||
Changes in fair value of equity investments at fair value through other comprehensive income, net of tax | (11,083) | (11,083) | (639) | (11,722) | |||||||||
Exchange differences on translation of foreign operations | (120,756) | (120,756) | (120,756) | ||||||||||
Total comprehensive income for the year | 577,558 | (11,083) | (120,756) | 709,397 | 736,153 | 1,313,711 | |||||||
Business combinations under common control (Note 39) | (443,582) | (443,582) | (443,582) | ||||||||||
Capital injection from non-controlling shareholders | 78,271 | 78,271 | 759,350 | 837,621 | |||||||||
Capital injection before business combinations under common control | 69,885 | 69,885 | 69,885 | ||||||||||
Acquisition of non-controlling interests | (218) | (218) | (3,547) | (3,765) | |||||||||
Restructure of subsidiaries | (77,511) | (77,511) | 77,511 | ||||||||||
Disposal of subsidiaries | (1,160) | (1,160) | |||||||||||
Issuance of senior perpetual securities | 1,988,000 | 1,988,000 | 1,988,000 | ||||||||||
Release of deferred government subsidies | 2,200 | 2,200 | 2,200 | ||||||||||
Equity exchange arrangement | 10,735,214 | 10,735,214 | (10,735,214) | ||||||||||
Other appropriations | 8,119 | 8,119 | (1,514) | 6,605 | |||||||||
Step acquisition of a subsidiary | (11,166) | (11,166) | (11,166) | ||||||||||
Share of reserves of joint ventures and associates | 2,051 | 2,051 | 2,051 | ||||||||||
Distribution of other equity instruments | (110,010) | (19,288) | (90,722) | (300,538) | (410,548) | ||||||||
Dividends distribution before business combinations under common control | (6,519) | (6,519) | (6,519) | ||||||||||
Acquisition of a subsidiaries | 1,468,435 | 1,468,435 | |||||||||||
Dividends distribution of subsidiaries to non- controlling shareholders | (605,416) | (605,416) | |||||||||||
Repayment of senior perpetual securities | (2,175,133) | (2,175,133) | |||||||||||
Balance at Dec. 31, 2018 | 52,425,550 | 14,903,798 | 18,457,678 | 11,690,292 | 5,867,557 | 145,938 | 6,588 | 3,988,000 | 214,520 | (2,848,821) | 15,273,971 | 67,699,521 | |
Adjustment due to business combinations under common control (Note 39) | 10,243 | 3,000 | 7,243 | 19,659 | 29,902 | ||||||||
Balance at Jan. 01, 2019 | 52,425,550 | 14,903,798 | 18,457,678 | 11,690,292 | 5,867,557 | 145,938 | 6,588 | 3,988,000 | 214,520 | (2,848,821) | 15,273,971 | 67,699,521 | |
Balance at December 31 | 52,415,307 | 14,903,798 | 18,454,678 | 11,690,292 | 5,867,557 | 145,938 | 6,588 | 3,988,000 | 214,520 | (2,856,064) | 15,254,312 | 67,669,619 | |
Restated balance at Dec. 31, 2018 | 52,425,550 | 14,903,798 | 18,457,678 | 11,690,292 | 5,867,557 | 145,938 | 6,588 | 3,988,000 | 214,520 | (2,848,821) | 15,273,971 | 67,699,521 | |
Profit for the year | 853,102 | 853,102 | 637,483 | 1,490,585 | |||||||||
Other comprehensive income for the year | |||||||||||||
Changes in fair value of equity investments at fair value through other comprehensive income, net of tax | 42,923 | 42,923 | 250 | 43,173 | |||||||||
Exchange differences on translation of foreign operations | (32,323) | (32,323) | (32,323) | ||||||||||
Total comprehensive income for the year | 863,702 | 42,923 | (32,323) | 853,102 | 637,733 | 1,501,435 | |||||||
Business combinations under common control (Note 39) | (237) | (237) | (237) | ||||||||||
Capital injection from non-controlling shareholders | 4,144 | 4,144 | 706,970 | 711,114 | |||||||||
Acquisition of non-controlling interests | 149,322 | 149,322 | (149,322) | ||||||||||
Disposal of subsidiaries | (1,547) | (1,666) | 119 | (26,234) | (27,781) | ||||||||
Issuance of senior perpetual securities | 1,499,104 | 1,499,104 | 1,499,104 | ||||||||||
Issuance of share capital | (51,678) | 2,118,875 | 8,564,661 | (10,735,214) | (51,678) | ||||||||
Other appropriations | (5,317) | (5,317) | (17,768) | (23,085) | |||||||||
Share of reserves of joint ventures and associates | 936 | 936 | 936 | ||||||||||
Distribution of other equity instruments | (212,000) | (212,000) | (140,648) | (352,648) | |||||||||
Dividends distribution of subsidiaries to non- controlling shareholders | (199,215) | (199,215) | |||||||||||
Balance at Dec. 31, 2019 | 54,671,979 | 17,022,673 | 27,022,102 | 1,108,544 | 5,867,557 | 139,891 | 49,511 | 5,487,104 | 182,197 | (2,207,600) | 16,085,487 | 70,757,466 | |
Adjustment due to business combinations under common control (Note 39) | 12,346 | 3,000 | 9,346 | 20,060 | 32,406 | ||||||||
Balance at Jan. 01, 2020 | 54,671,979 | 17,022,673 | 27,022,102 | 1,108,544 | 5,867,557 | 139,891 | 49,511 | 5,487,104 | 182,197 | (2,207,600) | 16,085,487 | 70,757,466 | |
Balance at December 31 | 54,659,633 | 17,022,673 | 27,019,102 | 1,108,544 | 5,867,557 | 139,891 | 49,511 | 5,487,104 | 182,197 | (2,216,946) | 16,065,427 | 70,725,060 | |
Equity other information | |||||||||||||
Other reserves | 34,369,802 | ||||||||||||
Restated balance at Dec. 31, 2019 | 54,671,979 | 17,022,673 | 27,022,102 | 1,108,544 | 5,867,557 | 139,891 | 49,511 | 5,487,104 | 182,197 | (2,207,600) | 16,085,487 | 70,757,466 | |
Profit for the year | 741,004 | 741,004 | 832,025 | $ 241,077 | 1,573,029 | ||||||||
Other comprehensive income for the year | |||||||||||||
Changes in fair value of equity investments at fair value through other comprehensive income, net of tax | (39,371) | (39,371) | (1,483) | (40,854) | |||||||||
Exchange differences on translation of foreign operations | 163,008 | 163,008 | 163,008 | ||||||||||
Share of other comprehensive income of associates and joint ventures accounted for using the equity method | (2,522) | (2,522) | (387) | (2,522) | |||||||||
Total comprehensive income for the year | 862,119 | (41,893) | 163,008 | 741,004 | 830,542 | 259,411 | 1,692,661 | ||||||
Business combinations under common control (Note 39) | (21,896) | (21,896) | 21,896 | ||||||||||
Capital injection from non-controlling shareholders | 3,271 | 3,271 | 426,751 | 430,022 | |||||||||
Disposal of subsidiaries | 3,616 | 3,616 | 3,616 | ||||||||||
Issuance of senior perpetual securities | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||
Release of deferred government subsidies | 49,290 | 49,290 | 49,290 | ||||||||||
Other appropriations | 32,259 | 32,259 | (19,741) | 12,518 | |||||||||
Share of reserves of joint ventures and associates | 7,047 | (58) | 7,105 | 7,047 | |||||||||
Distribution of other equity instruments | (275,000) | (275,000) | (146,416) | (421,416) | |||||||||
Underwriting fees of other equity instruments | (675) | (675) | (675) | ||||||||||
Dividends distribution of subsidiaries to non- controlling shareholders | (358,813) | (358,813) | |||||||||||
Repayment of senior perpetual securities | (2,000,000) | (2,000,000) | (2,000,000) | ||||||||||
Balance at Dec. 31, 2020 | ¥ 54,332,010 | ¥ 17,022,673 | ¥ 27,003,477 | ¥ 1,161,392 | ¥ 5,867,557 | ¥ 179,255 | ¥ 7,618 | ¥ 4,486,429 | ¥ 345,205 | ¥ (1,741,596) | ¥ 16,839,706 | 10,907,543 | 71,171,716 |
Equity other information | |||||||||||||
Other reserves | $ 5,297,242 | ¥ 34,564,504 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOW ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
CONSOLIDATED STATEMENT OF CASH FLOW | ||||
Net cash flows from operating activities | $ 2,280,666 | ¥ 14,881,346 | ¥ 12,491,673 | ¥ 13,021,676 |
Investing activities | ||||
Purchases of property, plant and equipment | (772,245) | (5,038,896) | (9,050,859) | (6,748,212) |
Purchase of other financial assets measured at fair value | (1,075,862) | (7,020,000) | (3,500,700) | |
Purchases of investment properties | (44,063) | |||
Purchases of intangible assets | (103,304) | |||
Purchase of land use rights | (2,838) | |||
Proceeds from disposal of property, plant and equipment | 235,138 | 1,534,275 | 1,132,847 | 564,791 |
Proceeds from disposal of a joint venture and an associate | 367,867 | 30,816 | ||
Proceeds from disposal of subsidiaries, net of cash | 6,576 | 42,910 | 23,797 | |
Proceeds from disposal of other financial assets measured at fair value | 1,717,668 | 11,207,783 | 2,155 | 198,000 |
Proceeds from disposal of intangible assets | 42,562 | 277,715 | 5,764 | |
Proceeds from disposal of right-of-use assets | 2,317 | 15,118 | ||
Proceeds from disposal and deemed disposal of subsidiaries and business, net of cash | 6,558 | |||
Investments in joint ventures | (664) | (4,333) | (50,000) | (90,000) |
Investments in associates | (1,145) | (7,473) | (2,653,244) | (266,300) |
Dividend from other financial assets measured at fair value | 12,689 | 82,794 | 97,775 | 109,914 |
Dividends received from associates and joint ventures | 49,519 | 323,109 | 236,708 | 327,983 |
Change in deposit of futures contracts | (8,606) | (56,156) | (67,253) | (13,288) |
Asset-related government grants received | 7,289 | 47,558 | 103,373 | 167,314 |
Investment income from other financial assets measured at fair value | 80,418 | 524,726 | ||
Loans repaid by related parties | 32,215 | |||
Proceeds from acquisition of subsidiaries, net of cash | 566 | 3,690 | 255,650 | |
Net cash flows (used in)/generated from investing activities | 296,220 | 1,932,820 | (13,395,833) | (5,530,701) |
Financing activities | ||||
Repayments of short-term bonds and mid-term notes | (4,695,604) | (30,638,813) | (22,400,000) | (21,815,000) |
Repayments of short-term and long-term bank borrowings and other loans | (6,607,120) | (43,111,460) | (66,105,388) | (70,560,667) |
Repayments of gold leasing arrangement | (1,060,821) | (6,921,860) | (1,607,905) | (7,519,283) |
Cash consideration paid for business combination under common control | (237) | (373,495) | ||
Proceeds from a gold leasing arrangement | 6,921,860 | 2,323,105 | ||
Proceeds from issuance of short-term bonds and medium-term notes | 3,969,349 | 25,900,000 | 37,974,402 | 13,185,034 |
Proceeds from sale and leaseback finance leases, net of deposit and transaction costs | 1,204,843 | |||
Drawdown of short-term and long-term bank borrowings and other loans | 7,053,089 | 46,021,404 | 40,669,197 | 76,899,591 |
Senior perpetual securities' distribution paid | (64,585) | (421,416) | (352,648) | (410,548) |
Capital injection from non-controlling shareholders | 30,234 | 197,276 | 711,114 | 837,621 |
Capital injection from the parent company to the entity acquired under common control | 69,885 | |||
Share issue cost | (51,678) | |||
Principal portion of lease payments | (267,924) | (1,748,202) | (3,032,106) | |
Finance lease instalment paid | (3,915,404) | |||
Dividends paid by subsidiaries to non-controlling shareholders | (54,611) | (356,340) | (222,930) | (327,645) |
Interest paid | (561,644) | (3,664,725) | (4,467,803) | (5,445,120) |
Repayments of senior perpetual securities | (306,513) | (2,000,000) | (2,417,758) | |
Purchase of non-controlling interests | (3,765) | |||
Instalment payment of bonds issuance expenses | (4,488) | (29,285) | (9,913) | |
Proceeds from issuance of perpetual securities | 153,257 | 1,000,000 | 1,500,000 | 1,988,000 |
Net cash flows used in financing activities | (2,417,381) | (15,773,421) | (10,474,035) | (16,280,606) |
Net increase/(decrease) in cash and cash equivalents | 159,505 | 1,040,745 | (11,378,195) | (8,789,631) |
Cash and cash equivalents at beginning of year | 1,192,161 | 7,778,853 | 19,135,843 | 27,868,110 |
Effect of foreign exchange rate changes, net | (13,548) | (88,401) | 21,205 | 57,364 |
Cash and cash equivalents at December 31 | $ 1,338,118 | ¥ 8,731,197 | ¥ 7,778,853 | ¥ 19,135,843 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
GENERAL INFORMATION | |
GENERAL INFORMATION | 1 GENERAL INFORMATION Aluminum Corporation of China Limited (the "Company") (中國鋁業股份有限公司) and its subsidiaries (together the "Group") are principally engaged in manufacture and distribution of alumina, primary aluminum and energy products, and the operational governance across the relevant industry. The Group is also engaged in the investment in coal, railway, machinery manufacturing and the relevant industry, and the development of bauxite related resources, the production, fabrication and distribution of bauxite, carbon and relevant non-ferrous metal products as well as the trading and logistics of non-ferrous metal products and coal products. The Company is a joint stock company which was established on September 10, 2001 and is domiciled in the People’s Republic of China (the “PRC”) with limited liability. The address of its registered office is No. 62 North Xizhimen Street, Haidian District, Beijing, the PRC. The Company’s shares have been listed on the Main Board of the Hong Kong Stock Exchange and the New York Stock Exchange since 2001. The Company also listed its A shares on the Shanghai Stock Exchange in 2007. In the opinion of the directors, the ultimate holding company and parent of the Company is Aluminum Corporation of China (“Chinalco“) (中國鋁業集團有限公司), a company incorporated and domiciled in the PRC and wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council. Information about subsidiaries Particulars of the Company’s principal subsidiaries are as follows: Percentage of equity Place of attributable to registration and Registered the Company Name business capital Principal activities Direct Indirect Shanxi Huaxing Aluminum Co. Ltd. (“Shanxi Huaxing”) (山西華興鋁業有限公司) PRC/Mainland China 1,850,000 Manufacture and distribution of alumina 60.00 % 40.00 % Baotou Aluminum Co., Ltd. (“Baotou Aluminum“) (包頭鋁業有限公司) PRC/Mainland China 2,245,510 Manufacture and distribution of primary aluminum, aluminum alloy and related fabricated products and carbon products 100.00 % — China Aluminum International Trading Co., Ltd. (“Chalco Trading”) (中鋁國際貿易有限公司) PRC/Mainland China 1,731,111 Import and export activities 100.00 % — Chalco Shanxi New Material Co., Ltd. (“Shanxi New Material”) (中鋁山西新材料有限公司) PRC/Mainland China 4,279,601 Manufacture and distribution of alumina, primary aluminum and anode carbon products and electricity generation and supply 85.98 % — China Aluminum International Trading Group Co., Ltd. (“Trading Group”) (中鋁國際貿易集團有限公司) PRC/Mainland China 1,030,000 Import and export activities 100.00 % — Zunyi Aluminum Co., Ltd. (遵義鋁業股份有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum and alumina 67.45 % — Chalco Hong Kong Ltd. (“Chalco Hong Kong”) (中國鋁業香港有限公司) Hong Kong HKD849,940 in thousand Overseas investments and alumina import and export activities, and mining and distribution of bauxite. 100.00 % — Chalco Mining Co., Ltd. (“Chalco Mining“) (中鋁礦業有限公司) PRC/Mainland China 4,028,859 Manufacture, acquisition and distribution of bauxite mines, limestone ore and alumina 100.00 % — Chalco Energy Co., Ltd. (中鋁能源有限公司) PRC/Mainland China 1,384,398 Thermoelectric supply and investment management 100.00 % — China Aluminum Ningxia Energy Group Co., Ltd. (“Ningxia Energy“) (中鋁寧夏能源集團) PRC/Mainland China 5,025,800 Thermal power, wind power and solar power generation, coal mining, and power-related equipment manufacturing 70.82 % — Guizhou Huajin Aluminum Co., Ltd. (“Guizhou Huajin“) (貴州華錦鋁業有限公司) PRC/Mainland China 1,000,000 Manufacture and distribution of alumina 60.00 % — Percentage of equity Place of attributable to registration and Registered the Company Name business capital Principal activities Direct Indirect Chalco Zhengzhou Research Institute of Non-ferrous Metal Co., Ltd. (中國鋁業鄭州有色金屬研究院有限公司) PRC/Mainland China Research and development services 100.00 % — Chalco Shandong Co., Ltd. ("Chalco Shandong“) (中鋁山東有限公司) PRC/Mainland China Manufacture and distribution of alumina 100.00 % — Chalco Zhongzhou Aluminum Co., Ltd. ("Zhongzhou Aluminum“) (中鋁中州鋁業有限公司) PRC/Mainland China Manufacture and distribution of alumina 100.00 % — China Aluminum Logistics Group Corporation Co., Ltd. (中鋁物流集團有限公司) PRC/Mainland China Logistics and transportation 100.00 % — Chinalco Shanxi Jiaokou Xinghua Technology Ltd. (“Xinghua Technology“) (中鋁集團山西交口興華科技股份有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum 33.00 % 33.00 % Chinalco Shanghai Company Limited (“Chinalco Shanghai“) (中鋁(上海)有限公司) PRC/Mainland China Trading and engineering project management and leasing 100.00 % — Shanxi China Huarun Co., Ltd. (“Shanxi Huarun”) (山西中鋁華潤有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum 40.00 % — Guizhou Huaren New Material Co., Ltd. (“Guizhou Huaren”) (貴州華仁新材料有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum 40.00 % — Chinalco Materials Co., Ltd. (中鋁物資有限公司) PRC/Mainland China Import and export activities and trading 100.00 % — |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the Group consisting of the Company and its subsidiaries. 2.1 Basis of preparation 2.1.1 The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and the disclosure requirements of the Hong Kong Companies Ordinance Cap. 622 (“HKCO”). The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. 2.1.2 As of December 31, 2020, the Group’s current liabilities exceeded its current assets by approximately RMB16,424 million (December 31, 2019 (restated): RMB20,502 million). The directors of the Company have considered the Group’s available sources of funds as follows: · The Group’s expected net cash inflows from operating activities in 2021; · Unutilized banking facilities of approximately RMB156,318 million as of December 31, 2020, of which amounts totalling RMB130,371 million will be subject to renewal during the next 12 months. The directors of the Company are confident that these banking facilities could be renewed upon expiration based on the Group’s past experience and good credit standing; · Bond facilities registered with National Association of Financial Market Institutional Investors but not yet utilized; and · Other available sources of financing from banks and other financial institutions given the Group’s credit history. The directors of the Company believe that the Group has adequate resources to continue operations for the foreseeable future of not less than 12 months from December 31, 2020. The directors of the Company therefore are of the opinion that it is appropriate to adopt the going concern basis in preparing the consolidated financial statements. 2.1.3 The financial statements have been prepared on a historical cost basis except for certain financial assets and financial liabilities measured at fair value. 2.1.4 The Group has applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2020: · Definition of Material – amendments to IAS 1 and IAS 8 · Definition of a Business – amendments to IFRS 3 · Interest Rate Benchmark Reform – amendments to IFRS 9, IAS 39 and IFRS 7 · Covid-19-Related Rent Concessions – amendments to IFRS 16 · Revised Conceptual Framework for Financial Reporting The amendments listed above did not have any material impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods. 2.1.5 Certain new accounting standards and interpretations have been published that are not mandatorily effective for December 31, 2020 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. 2.2 Principles of consolidation and equity accounting 2.2.1 Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (Note 2.3). Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss and other comprehensive income, statement of changes in equity and balance sheet respectively. 2.2.2 Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (Note 2.2.4), after initially being recognized at cost. 2.2.3 Under IFRS 11 ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Group only has joint ventures. Joint ventures Interests in joint ventures are accounted for using the equity method (Note 2.2.4), after initially being recognized at cost in the consolidated statement of financial position. 2.2.4 Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in Note 2.11. 2.2.5 The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss or transferred to another category of equity as specified/ permitted by applicable IFRSs. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. 2.3 (a) Merger accounting for business combinations under common control The consolidated financial statements incorporate the financial statements of the combining entities or businesses in business combination under common control as if they had been combined from the date when the combining entities or businesses first came under the control of the ultimate holding company. The net assets of the combining entities or businesses are consolidated using the carrying amount from the ultimate holding company’s perspective. No amount is recognized for goodwill or excess of the Group‘s interest in the book value of the net assets over cost at the time of the common control combination, to the extent of the continuation of the ultimate holding company’s interest. The consolidated statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control, where this is a shorter period, regardless of the date of the common control combination. The comparative financial data have been restated to reflect the business combinations under common control occurred during this year as disclosed in Note 39. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders, costs or losses incurred in combining operations of the previously separate businesses and other costs incurred in relation to the common control combination that is to be accounted for by using the merger accounting method are recognized as expenses in the period in which they are incurred. (b) Acquisition method of accounting for other business combinations and goodwill The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group, other than common control combinations. The consideration transferred is measured at the acquisition date fair value which is the sum of acquisition date fair value of assets transferred by the Group, liabilities assumed by the Group to the former owner of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. The consideration transferred included the fair value of any assets and liabilities resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at fair value at the acquisition date. All other components of non-controlling interests are measured at fair value. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportional share of net assets in the event of liquidation at fair value or at the proportional share of the acquiree's identifiable net assets. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. This includes the separation of embedded derivatives in host contracts of the acquiree. If the business combination is achieved in stages, the previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling interests and any fair value of the Group's previously held equity interests in the acquiree over the identifiable net assets acquired and liabilities assumed. If the sum of this consideration and other items is lower than the fair value of the net assets acquired, the difference is, after reassessment, recognized in profit or loss as a gain on bargain purchase. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group performs its annual impairment test of goodwill as of December 31. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the cash generating unit (group of cash- generating units) to which the goodwill relates. Where the recoverable amount of the cash-generating unit (group of cash generating units) is less than the carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not reversed in a subsequent period. Where goodwill has been allocated to a cash-generating unit (or group of cash generating units) and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on the disposal. Goodwill disposed of in these circumstances is measured based on the relative value of the operation disposed of and the portion of the cash-generating unit retained. 2.4 Separate financial statements Investments in subsidiaries, associates and jointly ventures are accounted for at cost less impairment. Cost includes direct attributable costs of investment. The results of subsidiaries, associates and jointly ventures are accounted for by the Company on the basis of dividend received and receivable. Impairment testing of the investments in subsidiaries, associates and jointly ventures is required upon receiving a dividend from these investments if the dividend exceeds the total comprehensive income of the subsidiary, associates and jointly ventures in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee’s net assets including goodwill. 2.5 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision-makers, who are responsible for allocating resources and assessing the performance of the operating segments, have been identified as the executive presidents committee of the Company that make strategic decisions. 2.6 Foreign currency translation Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in RMB, which is the Company’s functional and presentation currency. Transactions and balances Foreign currency transactions recorded by the entities in the Group are initially recorded using their respective functional currency rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rates of exchange ruling at the end of the reporting period. Differences arising on settlement or translation of monetary items are recognized in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non- monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of a non-monetary item measured at fair value is treated in line with the recognition of the gain or loss on change in fair value of the item. In determining the exchange rate on initial recognition of the related asset, expense or income on the derecognition of a non-monetary asset or non-monetary liability relating to an advance consideration, the date of initial transaction is the date on which the Group initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Group determines the transaction date for each payment or receipt of the advance consideration. Group companies The results and financial positions of all the group entities (none of which has the currency of a hyper-inflationary economy) that has a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) assets and liabilities in each statement of financial position presented are translated at the closing rates at the end of the reporting period; (ii) income and expenses in each statement of profit and loss and other comprehensive income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rates at the dates of the transactions); and (iii) all resulting exchange differences are recognized in other comprehensive income. Upon disposal of a foreign operation, the other comprehensive income related to the foreign operation is reclassified to profit or loss. Goodwill and fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehensive income. 2.7 Property, plant and equipment Property, plant and equipment, other than construction in progress, are stated at cost less accumulated depreciation and any impairment losses. When an item of property, plant and equipment is classified as held for sale or when it is part of a disposal group classified as held for sale, it is not depreciated and is accounted for in accordance with IFRS 5. The cost of an item of property, plant and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after items of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalized in the carrying amount of the asset as a replacement. Where significant parts of property, plant and equipment are required to be replaced at intervals, the Group recognizes such parts as individual assets with specific useful lives and depreciates them accordingly. Depreciation is calculated on the straight-line basis to write off the cost of each item of property, plant and equipment to its residual value over its estimated useful life. The principal annual rates used for this purpose are as follows: Buildings 8 – 45 years Machinery 3 – 30 years Transportation facilities 6 – 10 years Office and other equipment 3 – 10 years Where parts of an item of property, plant and equipment have different useful lives, the cost of that item is allocated on a reasonable basis among the parts and each part is depreciated separately. Residual values, useful lives and the depreciation method are reviewed, and adjusted if appropriate, at least at each financial year end. An item of property, plant and equipment including any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal or retirement recognized in profit or loss in the year the asset is derecognized is the difference between the net sales proceeds and the carrying amount of the relevant asset. Construction in progress (“CIP”) represents buildings under construction, which is stated at cost less any impairment losses, and is not depreciated. Cost comprises the direct costs of construction and capitalized borrowing costs on related borrowed funds during the period of construction. CIP is reclassified to the appropriate categories of property, plant and equipment when completed and ready for use. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.11). 2.8 Investment properties Investment properties are interests in land use rights and buildings (including the leasehold property held as a right-of-use asset which would otherwise meet the definition of an investment property) held to earn rental income and/or for capital appreciation, rather than for use in the production or supply of goods or services or for administrative purposes; or for sale in the ordinary course of business. Such properties are measured initially at cost, including transaction costs. After initial recognition, the Group uses the cost methods to measure all of its investment properties. Depreciation is calculated on the straight-line basis to write off the cost to investment property's residual value over its estimated useful life. The estimated useful lives are as follows: Buildings 50 years Land use rights 40 – 70 years The carrying amounts of investment properties measured using the cost method are reviewed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the year of the retirement or disposal. 2.9 Intangible assets (a) Goodwill Goodwill is measured as described in Note 2.3. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortized but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the operating segments (Note 5). (b) Mining rights and mineral exploration rights The Group’s mineral exploration rights and mining rights relate to coal, bauxite and other mines. (i) Recognition Except for mineral exploration rights and mining rights acquired in a business combination, mineral exploration rights and mining rights are initially recorded at cost which includes the acquisition consideration, qualifying exploration and other direct costs. The mineral exploration rights are stated at cost less any impairment, and the mining rights are stated at cost less any amortization and impairment. (ii) Reclassification Mineral exploration rights are converted to mining rights when obtain mining rights certification, or technical feasibility and commercial viability of extracting a mineral resource are demonstrable, and are subject to amortization when commercial production has commenced. The Group assesses the stage of each mine under construction to determine when a mine moves into the production stage. The criteria used to assess the start date are determined based on the unique nature of each mine construction project. The Group considers various relevant criteria, such as completion of a reasonable period of testing of the mine and equipment, ability to produce in saleable form (within specifications) and ability to sustain ongoing production to assess when a mine is substantially complete and ready for its intended use. (iii) Amortization Mining rights other than coal mining rights are amortized on a straight-line basis over a shorter period of the mining right valid period and expected mining life. Estimated mineable periods of the majority of the mining rights range from 3 to 30 years. Coal mining rights are amortized on a unit-of-production basis over the economically recoverable reserves evaluated based on the reserves estimated in accordance with the standards of the mine concerned. (iv) Impairment An impairment review is performed when there are indicators that the carrying amount of the mineral exploration rights and mining rights may exceed their recoverable amounts. To the extent that this occurs, the excess is fully provided as an impairment loss. (c) Computer software Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use specific software. These costs are amortized over their estimated useful lives, which do not exceed 10 years. Costs associated with maintaining computer software programs are recognized as an expense as incurred. (d) Aluminum production quota Aluminum production quota are initially recorded at cost and subsequently states at cost less any amortization and impairment. Amortization is provided on a straight-line basis over expected useful life. (e) Other intangible assets Other intangible assets mainly include profit-sharing rights of Maochang mine, which are initially recorded at costs incurred to acquire the specific right. Amortization is calculated on the straight-line basis over its estimated useful life. The estimated useful live of profit-sharing rights of Maochang mine is 22.5 years. For intangible assets with finite useful life, the estimated useful lives and amortization method are reviewed annually at the end of each reporting period and adjusted when necessary. 2.10 Research and development costs Research and development expenditures are classified as research expenditures and development expenditures according to the nature of the expenditures and whether there is significant uncertainty of development activities transforming to assets. Research expenditures are recognized in profit or loss for the current period. Development expenditures are recognized as assets when all of the following criteria are met: (i) it is technically feasible to complete the asset so that it will be available for use or sale; (ii) management intends to complete the asset and intends and has the ability to use or sell it; (iii) it can be demonstrated that the asset will generate probable future economic benefits; (iv) there are adequate technical, financial and other resources to complete the development of the asset and management has the ability to use or sell the asset; and (v) the expenditure attributable to the asset during its development phase can be reliably measured. Development expenditures that do not meet the criteria above are recorded in profit or loss for the current period as incurred. Development expenditures that have been recorded in profit or loss in previous periods will be not recognized as assets in subsequent periods. The Group has not had any development expenditure capitalized. 2.11 Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. 2.12 Non-current assets (or disposal groups) held for sale Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement. An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset (or disposal group) is recognized at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. 2.13 Investments and other financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income, and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient of not adjusting the effect of a significant financing component, the Group initially measures a financial asset at its fair value, plus in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15 in accordance with the policies set out for “Revenue recognition” below. In order for a financial asset to be classified and measured at amortized cost or fair value through other comprehensive income, it needs to give rise to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash fl |
SIGNIFICANT ACCOUNTING JUDGEMEN
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | 3 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these judgements, assumptions and estimates could result in outcomes that require a material adjustment to the carrying amounts of assets or liabilities affected in future periods. Judgements In the process of applying the Group’s accounting policies and preparing the Group’s consolidated financial statements, management has made the following judgements, apart from those involving estimates, which have a significant effect on the amounts recognized in the consolidated financial statements. (a) Significant influence over an entity in which the Group holds less than 20% of voting rights At December 31, 2020, the Group owned 10.04% equity interest in Yunnan Aluminum Co., Ltd.* (“Yunnan Aluminum”) (雲南鋁業股份有限公司). The Group considers that it has significant influence over Yunnan Aluminum even though it owns less than 20% of the voting rights, on the grounds that the Group is the second largest shareholders of Yunnan Aluminum and assigned one out of the eleven directors of the Board of Directors of Yunnan Aluminum Group, thus have the right to participate in decision making of Yunnan Aluminum. At December 31, 2020, the Group owned a 6.68% equity interest in Chalco Mineral Resources Co.,Ltd.* (“Chalco Resources”) (中鋁礦產資源有限公司). The Group considers that it has significant influence over Chalco Resources even though it owns less than 20% of the voting rights, on the grounds that the Group can appoint one out of the five directors of the Board of Directors of Chalco Resources, thus have the right to participate in decision making of Chalco Resources. At December 31, 2020, the Group owned 14.71% of the voting right of Chinalco Capital Holdings Co., Ltd.* (“Chinalco Capital”) (中鋁資本控股有限公司). The Group considers that it has significant influence over Chinalco Capital since it can appoint one out of three directors of the Board of Directors of Chinalco Capital, thus have the right to participate in decision making of Chinalco Capital. At December 31, 2020, the Group owned a 16% equity interest in Baise New Aluminum Power Co., Ltd. * (“New Aluminum Power”) (百色新鋁電力有限公司). The Group considers that the Group has significant influence over New Aluminum Power even though it owns less than 20% of the voting rights, on the grounds that the Group can appoint one out of the nine directors of the Board of Directors of New Aluminum Power, thus have the right to participate in decision making of New Aluminum Power . At December 31, 2020, the Group owned a 14.29% equity interest in Inner Mongolia Geliugou Co., Ltd.* (“Inner Mongolia Qiliugou”) (內蒙古圪柳溝能源有限公司). The Group considers that it has significant influence over Inner Mongolia Qiliugou even though it owns less than 20% of the voting rights, on the grounds that the Group can appoint one out of the seven directors of the Board of Directors of Inner Mongolia Qiliugou, thus have the right to participate in decision making of Inner Mongolia Qiliugou. (b) Consolidation of entities in which the Group holds less than a majority of voting rights At December 31, 2020, the Group owned a 40.23% equity interest in Ningxia Yinxing Energy Co., Ltd. (“Yinxing Energy”) (寧夏銀星能源股份有限公司). Since the remaining 59.77% of the equity shares in Yinxing Energy are held by a large number of individual shareholders, in opinion of the directors of the Company, the Group has control over Yinxing Energy, and Yinxing Energy continues to be included in the consolidation scope. At December 31, 2020, the Company owned a 40% equity interest in Guizhou Huaren New Materials Co., Ltd.* (“Guizhou Huaren”) (貴州華仁新材料有限公司). In accordance with the acting-in-concert agreement signed between the Company and Qingzhen Industry Investment Co., Ltd.* (“Qingzhen Industry”)( 清鎮市工業投資有限公司) and Guizhou Chengqian Enterprise (Group) Co., Ltd. * (“Guizhou Chengqian”) (貴州成黔企業(集團)有限公司). Qingzhen Industry and Guizhou Chengqian would exercise the shareholders’ and board of directors’ votes in concert with the Group. Therefore, the directors of the Company believe that the Company has control over Guizhou Huaren and consolidated Guizhou Huaren’s financial statements from the date the Group obtained control. At December 31, 2020, the Company owned 40% of the shares of Shanxi China Aluminum China Resources Co., Ltd.* (“Shanxi Zhongrun”) (山西中鋁華潤有限公司). In accordance with the acting-in-concert agreement signed between the Company and China Resources Coal Industry Group Co., Ltd. (“China Resources Coal Industry”), China Resources Coal Industry would exercise the shareholders’ and Board of Directors’ votes in concert with the Group. Therefore, the directors of the Company believe that the Company has control over Shanxi Zhongrun and consolidated Shanxi Zhongrun’s financial statements from the date the Group obtained control. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group’s assumptions and estimates are based on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. (a) Impairment assessment of property, plant and equipment As of December 31, 2020, the Company’s net carrying amount of property, plant and equipment (“PP&E”) was RMB 100,638 million. Management assesses related assets for potential impairment whenever there are indications that the carrying value of an asset or a group of assets may not be recoverable. As of December 31, 2020, management performed impairment assessment on property, plant and equipment (“PP&E”) with impairment indications at the level of cash generating unit (“CGU”) to which the PP&E was allocated using discounted cash flow model. The discounted cash flows model used for the impairment assessment of PP&E involved significant assumptions including product prices and the discount rate. (b) Impairment assessment of goodwill As of December 31, 2020, the Company’s carrying value of goodwill was RMB 3,510 million. Management performed impairment assessment of goodwill on an annual basis. When performing the impairment assessment, the recoverable amount of the CGU to which the goodwill was allocated was estimated by management using discounted cash flow model, and compared with the carrying amount of the CGU to determine if goodwill was impaired. The discounted cash flow models used for the impairment assessment of goodwill involved significant assumptions including product prices, the long-term growth rate and the discount rate. (c) Property, plant and equipment and intangible assets (excluding goodwill) – estimated useful lives and residual values The Group’s management determines the estimated useful lives and residual values (if applicable) and consequently the related depreciation/amortization charges for its property, plant and equipment and intangible assets (excluding goodwill). These estimates are based on the historical experience of the actual useful lives of property, plant and equipment of similar nature and functions, or based on the useful life of intangible assets. Management will increase the depreciation/amortization charge where useful lives are less than previously estimated, and it will write off or write down technically obsolete or non-strategic assets that have been abandoned or sold. Actual economic lives may differ from estimated useful lives and actual residual values may differ from estimated residual values. Periodic review could result in change in depreciable lives and residual values and therefore change in depreciation/amortization expense in future periods. (d) Coal reserve estimates and units-of-production amortization for coal mining rights External qualified valuation professionals evaluate “economically recoverable reserves” based on the reserves estimated by external qualified exploration engineers in accordance with the PRC standards. The estimates of coal reserves are inherently imprecise and represent only the approximate amounts of the coal reserves because of the subjective judgements involved in developing such information. Economically recoverable reserve estimates are evaluated on a regular basis and have taken into account recent production and technical information about each mine. (e) Estimated net realizable value of inventories In accordance with the Group’s accounting policy, the Group’s management estimated net realizable value of inventories based on specific facts and circumstances. For different types of inventories, it requires the estimation on selling prices, costs of conversion, selling expenses and the related tax expense to calculate the net realizable amount of inventories. For inventories held for executed sales contracts, management estimates the net realizable amount based on the contracted price. For raw materials and work-in-progress, management has established a model in estimating the net realizable amount at which the inventories can be realized in the normal course of business after considering the Group’s manufacturing cycles, production capacity and forecasts, estimated future conversion costs and selling prices. Management also takes into account the price or cost fluctuations and other related matters occurring after the end of the reporting period which reflect conditions that existed at the end of the reporting period. It is reasonably possible that if there is a significant change in circumstances including the Group’s business and the external environment, outcomes within the next financial year would be significantly affected. (f) Investments in joint ventures and associates – recoverable amount In accordance with the Group’s accounting policy, each investment in a joint venture and an associate is evaluated in every reporting period to determine whether there are any indicators of impairment. If any such indicators exists, an estimate of the recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of the investment in a joint venture and an associate is measured at the higher of fair value less costs of disposal and value in use. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. Value in use is also generally determined as the present value of the estimated future cash flows of those expected to arise from the continued use of the asset in its present form and its eventual disposal. Present values are determined using a risk-adjusted pre-tax discount rate appropriate to the risks inherent in the asset. Future cash flow estimates are based on expected production and sales volumes, commodity prices (considering current and historical prices, price trends and related factors) and operating costs. This policy requires management to make these estimates and assumptions which are subject to risk and uncertainty; hence there is a possibility that changes in circumstances will alter these projections, which may impact on the recoverable amounts of the investments. In such circumstances, some or all of the carrying value of the investments may be impaired and the impairment would be charged against profit or loss. (g) Income tax The Group estimates its income tax provision and deferred taxation in accordance with the prevailing tax rules and regulations, taking into account any special approvals obtained from the relevant tax authorities and any preferential tax treatment to which it is entitled in each location or jurisdiction in which the Group operates. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, the differences will impact on the income tax and deferred tax provisions in the period in which the determination is made. Deferred tax assets are recognized for unused tax losses and deductible temporary differences, such as the provision for impairment of receivables, inventories and property, plant and equipment and accruals of expenses not yet deductible for tax purposes, to the extent that it is probable that taxable profits will be available against which the losses deductible temporary difference can be utilized. An entity shall recognize a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, except to the extent that both of the following conditions are satisfied: · the parent, investor or joint venture is able to control the timing of the reversal of the temporary difference; and · it is probable that the temporary difference will not reverse in the foreseeable future. In the event that future tax rules and regulations or related circumstances change, adjustments to current and deferred taxation may be necessary which would impact on the Group’s results or financial position. (h) Impairment of receivables The loss allowances for receivables are based on assumptions about risk of default and expected loss rates to determine the expected loss. The Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. The Group takes into account different macroeconomic scenarios in considering forward looking information. The Group regularly monitors and reviews the key macroeconomic assumptions and parameters related to the calculation of expected credit losses, including the risk of economic downturn, external market environment, technological environment, changes in customer conditions, GDP and consumer price index, etc. During the year ended December 31, 2020, the Group has taken into account the uncertainties arising from the COVID-19 outbreak and updated the relevant assumptions and parameters accordingly. The key macroeconomic parameters are listed below: Year Scenarios Items Basic Negative Positive Growth rate of gross GDP growth rate 8.83 % 8.39 % 9.27 % 2022 and subsequent years 5.30 % 5.04 % 5.57 % Consumer Price Index Growth Rate 1.33 % 1.26 % 1.40 % 2022 and subsequent years 2.40 % 2.28 % 2.52 % |
SIGNIFICANT CHANGES IN THE CURR
SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD | |
SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD | 4 SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD There was outbreak of COVID-19 in the PRC in January 2020 and subsequently expanded to a worldwide pandemic. The COVID-19 outbreak had great impact on domestic aluminum and alumina market during the first half of 2020. The Group has followed and strengthened its support to the government’s requirements on COVID-19 prevention and control work and has taken possible effective measures to mitigate the impact, including control of procurement and sales paces in market fluctuations, adjustment of the products structure and marketing strategies and reduction of operating costs and expenses. As of December 31, 2020 and up to date of this report, the COVID-19 has been effectively controlled in the PRC. As a result, domestic production and market of industrial products has gradually returned to normal and the price of aluminum and alumina has recovered to the level before the outbreak of COVID-19. However, the control of COVID-19 globally seems still indefinite, which increases the risk of global economic recession and uncertainty of PRC economy in a longer term. The Company will continuously monitor and assess the development of the COVID-19. Impairment test for financial and non-financial assets has been carried out with key assumptions and factors been considered for necessary revisions as the result of the COVID-19 outbreak. The liquidity risk, including the basis of going concern, has also been assessed up to date of authorisation of this financial statements (Note 37). |
REVENUE AND SEGMENT INFORMATION
REVENUE AND SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE AND SEGMENT INFORMATION | |
REVENUE AND SEGMENT INFORMATION | 5 REVENUE AND SEGMENT INFORMATION (a) Revenue Revenue recognized during the year is as follows: For the year ended December 31 (Restated) (Restated) Revenue from contracts with customers (net of value-added tax) Sale of goods 179,785,704 188,752,179 184,077,018 Rendering of services 325,055 1,145,304 1,587,246 180,110,759 189,897,483 185,664,264 Revenue from other sources Rental income 240,153 317,915 329,989 180,350,912 190,215,398 185,994,253 (a) Disaggregated revenue information For the year ended December 31, 2020 Corporate Primary and other Alumina Aluminum Energy operating Inter-segment segment segment Segment Trading segments elimination Total Type of goods or services Sales of goods 42,295,806 51,729,483 7,184,216 151,540,471 449,058 (69,122,016) 184,077,018 Rendering of services — — — 3,768,342 — (2,181,096) 1,587,246 Total revenue 42,295,806 51,729,483 7,184,216 155,308,813 449,058 (71,303,112) 185,664,264 Geographical markets Mainland China 42,295,806 51,729,483 7,184,216 146,666,981 449,058 (71,303,112) 177,022,432 Outside of mainland China — — — 8,641,832 — — 8,641,832 Total revenue from contracts with customers 42,295,806 51,729,483 7,184,216 155,308,813 449,058 (71,303,112) 185,664,264 Timing of revenue recognition Goods transferred at a point in time 42,295,806 51,729,483 7,184,216 151,540,471 449,058 (69,122,016) 184,077,018 Services transferred over time — — — 3,768,342 — (2,181,096) 1,587,246 Total revenue from contracts with customers 42,295,806 51,729,483 7,184,216 155,308,813 449,058 (71,303,112) 185,664,264 The following table shows the amounts of revenue recognized in the current reporting period that were included in the contract liabilities at the beginning of the reporting period: For the year ended December 31, 2019 (Restated) Corporate Primary and other Inter- Alumina Aluminum Energy operating segment segment segment Segment Trading segments elimination Total Type of goods or services Sales of goods 43,690,995 49,043,864 7,335,347 156,158,740 492,624 (67,969,391) 188,752,179 Rendering of services — — — 2,724,083 — (1,578,779) 1,145,304 Total revenue 43,690,995 49,043,864 7,335,347 158,882,823 492,624 (69,548,170) 189,897,483 Geographical markets Mainland China 43,690,995 49,043,864 7,335,347 153,106,808 492,624 (69,548,170) 184,121,468 Outside of mainland China — — — 5,776,015 — — 5,776,015 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,882,823 492,624 (69,548,170) 189,897,483 Timing of revenue recognition Goods transferred at a point in time 43,690,995 49,043,864 7,335,347 156,158,740 492,624 (67,969,391) 188,752,179 Services transferred over time — — — 2,724,083 — (1,578,779) 1,145,304 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,882,823 492,624 (69,548,170) 189,897,483 Revenue recognized that was included in contract liabilities at the beginning of the reporting period: – Sale of goods 1,543,164 1,565,285 – Others 36,158 73,541 1,579,322 1,638,826 (ii) Performance obligations Information about the Group’s performance obligations is summarised below: Revenue from sales of products (including sales of the other materials) The performance obligation is satisfied upon delivery of the industrial products and payment is generally due within 30 to 90 days from delivery, except for new customers, where advance is normally required. Sales of goods were made in a short period of time and the performance obligation was mostly satisfied in one year or less at the end of each year,thus the Group applied the expedient of not to disclose the transaction price allocated to unsatisfied performance obligation. Rendering of services The performance obligation is satisfied over time as services are rendered and payment is generally due upon completion of the relevant services. Amounts expected to be recognized as revenue for remaining contract performance obligation: For the year ended December 31 Within one year 1,638,826 1,399,340 After one year 125,758 182,859 1,764,584 1,582,199 The remaining performance obligations expected to be recognized in more than one year relate to rendering of services that are to be satisfied within 1 – 10 years. All the other remaining performance obligations are satisfied in one year or less at the end of each year. (b) Segment information The executive presidents committee of the Company have been identified as the chief operating decision makers. The committee is responsible for the review of the internal reports in order to allocate resources to operating segments and assess their performance. The committee considers the business from a product perspective comprising alumina, primary aluminum and energy for the Group’s manufacturing business, which are identified as separate reportable operating segments. In addition, the Group’s trading business is identified as a separate reportable operating segment. The Group’s reportable operating segments also include corporate and other operating segments. The committee assesses the performance of operating segments based on profit or loss before income tax in related periods. The manner of assessment used by the committee is consistent with that applied to the consolidated financial information for the year ended December 31, 2019. Management has determined the reportable operating segments based on the reports reviewed by the committee that are used to make strategic decisions. The Group’s five reportable operating segments are summarised as follows: · The alumina segment, which consists of mining and purchasing bauxite and other raw materials, refining bauxite into alumina, and selling alumina both internally to the Group’s aluminum enterprises and trading enterprises and externally to customers outside the Group. This segment also includes the production and sale of multi-form alumina bauxite. · The primary aluminum segment, which consists of procuring alumina and other raw materials, supplemental materials and electricity power, smelting alumina to produce primary aluminum which is sold to the Group’s trading enterprises and external customers, including Chinalco and its subsidiaries. This segment also includes the production and sale of carbon products and aluminum alloy and other aluminum products. · The trading segment, which consists of the trading of alumina, primary aluminum, aluminum fabrication products, other non-ferrous metal products, coal products and raw materials and supplemental materials and logistics and transport services to internal manufacturing plants and external customers. The products are sourced from fellow subsidiaries and international and domestic suppliers of the Group. Sales of products manufactured by the Group’s manufacturing business are included in the total revenue of the trading segment and are eliminated with the segment revenue of the respective segments which supplied the products to the trading segment. · The energy segment mainly includes coal mining, electricity generation by thermal power, wind power and solar power, new energy related equipment manufacturing business. Sales of coals are mainly to the Group’s internal and external coal consuming customers; electricity is sold to regional power grid corporations. · Corporate and other operating segments, which mainly include management of corporate, research and development activities and others. Prepaid current income tax and deferred tax assets are excluded from segment assets, and income tax payable and deferred tax liabilities are excluded from segment liabilities. All sales among the reportable operating segments were conducted on terms mutually agreed among group companies, and have been eliminated upon consolidation. Year ended December 31, 2020 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments elimination Total Total revenue 42,382,097 51,889,084 7,184,216 155,392,357 449,611 (71,303,112) 185,994,253 Inter-segment revenue (29,436,854) (11,458,500) (243,788) (30,058,138) (105,832) 71,303,112 — Sales of self-produced products (Note (i)) — — — 21,492,083 — — — Sales of products sourced from external suppliers — — — 103,842,136 — — — Revenue from external customers 12,945,243 40,430,584 6,940,428 125,334,219 343,779 — 185,994,253 Segment profit/(loss) before income tax 1,427,294 2,023,168 (77,235) 555,864 (1,705,175) (68,699) 2,155,217 Income tax expense (582,188) Profit for the year 1,573,029 Other items Finance income 42,912 58,437 36,333 72,632 16,607 — 226,921 Finance costs (826,521) (1,364,606) (995,572) (170,937) (1,062,892) — (4,420,528) Share of profits and losses of joint ventures 75,405 - 35,308 5,011 64,778 — 180,502 Share of profits and losses of associates 4,930 (35,328) (17,905) 38,683 155,357 — 145,737 Depreciation of right-of-use assets (364,655) (234,387) (96,967) (21,075) (50,469) — (767,553) Depreciation and amortization (excluding the depreciation of right- of-use assets) (2,934,949) (2,937,761) (1,943,524) (23,287) (71,281) — (7,910,802) (Losses)/gain on disposal of property, plant and equipment (15,274) 456,925 3,989 2,147 652 — 448,439 Realized loss on futures, forward and option contracts, net — — — 675,442 (152,064) — 523,378 Other income 21,549 11,087 55,561 33,207 18,147 — 139,551 Impairment loss on property, plant and equipment (23,135) (388,755) — (4,951) — — (416,841) Unrealized (losses)/gains on futures contracts,net — — — (27,705) 17,311 — (10,394) Gain on disposal of subsidiaries — — — — 11,305 — 11,305 Changes for impairment of inventories (121,286) 103,524 (15,642) 2,184 981 — (30,239) Provision for impairment of receivables (58,778) (14,417) (108,059) (414,342) (383,238) — (978,834) Dividends from other financial assets measured at fair value — — — — 82,794 — 82,794 Investments in associates 88,356 539,058 396,454 1,565,235 6,584,307 — 9,173,410 Investments in joint ventures 1,076,085 — 334,763 43,258 1,920,447 — 3,374,553 Additions during the year: Intangible assets 2,157 3,546 — 1,413 266 — 7,382 Right-of-use assets 12,001 — 59,010 2,875 2,893 — 76,779 Property, plant and equipment (Note (ii)) 2,317,271 1,069,086 881,810 328,033 25,119 — 4,621,319 (i) (ii) Year ended December 31, 2019 (Restated) Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments elimination Total Total revenue 43,899,982 49,089,019 7,345,971 158,935,656 492,940 (69,548,170) 190,215,398 Inter-segment revenue (29,573,401) (11,694,382) (236,136) (27,877,188) (167,063) 69,548,170 — Sales of self-produced products (Note (i)) — — — 24,380,771 — — — Sales of products sourced from external suppliers — — — 106,677,697 — — — Revenue from external customers 14,326,581 37,394,637 7,109,835 131,058,468 325,877 — 190,215,398 Segment profit/(loss) before income tax 844,848 687,246 403,479 958,007 (987,704) 213,085 2,118,961 Income tax expense — — — — — — (628,376) Profit for the year 1,490,585 Other items Finance income 61,644 53,252 35,093 105,664 5,540 — 261,193 Finance costs (651,238) (1,328,730) (1,064,769) (224,292) (1,652,512) — (4,921,541) Share of profits and losses of joint ventures 86,245 — (22,272) 3,767 202,375 — 270,115 Share of profits and losses of associates (6,319) 11,621 (32,660) 36,579 39,546 — 48,767 Depreciation of right-of-use assets (495,693) (338,975) (146,139) (45,541) (49,477) — (1,075,825) Depreciation and amortization (excluding the depreciation of right-of-use assets) (2,830,153) (3,235,356) (1,488,077) (79,365) (81,467) — (7,714,418) (Losses)/gains on disposal of property, plant and equipment and intangible assets (576,669) 833,288 (3,982) 7,271 (224) — 259,684 Realized gain on futures, forward and option contracts, net — — 60,671 — — — 60,671 Other income 21,252 716 11,382 47,666 3,595 — 84,611 Impairment on property, plant and equipment (8,742) (247,112) — (3,500) — — (259,354) Unrealized gain on futures, forward and option contracts,net — — — (9,851) — — (9,851) Gain on disposal of subsidiaries 118 — 3,014 2,738 255,317 — 261,187 Changes for impairment of inventories 69,740 166,331 34,136 (19,076) — — 251,131 Reversal of/(provision for) impairment of receivables, net of bad debts recovered 6,837 1,088 (53,227) (122,420) (3,294) — (171,016) Dividends from other financial assets measured at fair value — — 1,000 — 96,775 — 97,775 Investments in associates 83,424 574,385 362,757 2,021,964 6,469,871 — 9,512,401 Investments in joint ventures 1,076,085 — 79,199 298,991 1,931,307 — 3,385,582 Additions during the year: Intangible assets 209,366 949,013 (5,062) 1,869 200 — 1,155,386 Right-of-use assets 1,080,285 131,797 8,411 27,365 — — 1,247,858 Property, plant and equipment (Note (ii)) 6,490,041 2,381,644 1,454,659 132,841 165,832 — 10,625,017 (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB13,330 million, sales of self-produced primary aluminum amounting to RMB10,689 million, and sales of self-produced other products amounting to RMB362 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts are not included. Year ended December 31, 2018 (Restated) Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments elimination Total Total revenue 44,150,937 53,802,172 7,235,273 142,532,936 667,235 (68,037,641) 180,350,912 Inter-segment revenue (29,392,495) (12,457,863) (198,337) (25,775,920) (213,026) 68,037,641 — Sales of self-produced products (Note (i)) — — — 34,564,441 — — — Sales of products sourced from external suppliers — — — 82,192,575 — — — Revenue from external customers 14,758,442 41,344,309 7,036,936 116,757,016 454,209 — 180,350,912 Segment profit /(loss) before income tax 3,496,381 (929,298) 26,020 748,495 (1,267,146) 198,103 2,272,555 Income tax expense — — — — — — (826,366) Profit for the year 1,446,189 Year ended December 31, 2018 (Restated) Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments elimination Total Other items Finance income 100,125 54,458 15,744 136,603 185,392 — 492,322 Finance costs (399,344) (1,131,622) (1,047,285) (367,003) (1,937,438) — (4,882,692) Share of profits and losses of joint ventures 37,377 8 (225,377) 9,010 (20,470) — (199,452) Share of profits and losses of associates (1,141) 17,102 (52,368) 19,375 56,367 — 39,335 Depreciation of right-of-use assets (39,027) (41,175) (9,335) (18,615) — — (108,152) Depreciation and amortization (excluding the depreciation of right-of-use assets) (2,846,051) (2,954,801) (1,962,081) (108,069) (82,963) — (7,953,965) Gains /(losses) on disposal of property, plant and equipment and intangible assets 53,116 15,211 24,780 20,036 (12,045) — 101,098 Realized gain on futures, forward and option contracts, net (716) — 2,855 47,601 (9,248) — 40,492 Other income 57,777 38,220 29,858 6,718 2,794 — 135,367 Impairment on property, plant and equipment — — (7,450) (39,034) — — (46,484) Unrealized gain on futures, forward and option contracts, net — — — 100,967 — — 100,967 Gain on disposal of subsidiaries 7,671 — — — (4,154) — 3,517 Changes for impairment of inventories (54,463) (273,796) (7,884) (17,802) — — (353,945) Reversal of/(provision for) impairment of receivables, net of bad debts recovered 19,320 (9,406) (23,327) (84,922) (9,621) — (107,956) Dividends from other financial assets measured at fair value — — 1,000 — 108,914 — 109,914 Loss on disposal of associates — — (1,904) — — — (1,904) (Losses)/gain on previously held equity interest remeasured at an acquisition-date fair value — — (3,177) — 751,263 — 748,086 Investments in associates 89,734 558,759 2,064,425 131,691 3,518,853 — 6,363,462 Investments in joint ventures 989,840 — 435,867 77,211 1,890,431 — 3,393,349 Additions during the year: Intangible assets 99,089 753 2,754 514 194 — 103,304 Right-of-use assets 2,786 — — 52 — — 2,838 Property, plant and equipment (Note (ii)) 2,564,003 4,602,580 1,610,442 102,956 143,839 — 9,023,820 (i) (ii) As of December 31, 2020 Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As of December 31, 2020 Segment assets 62,050,175 39,671,083 20,520,759 44,594,935 254,246,772 Reconciliation: Elimination of inter-segment receivables (60,582,399) Other eliminations (360,498) Corporate and other Unallocated assets: — Deferred tax assets 1,481,235 Prepaid income tax 116,574 Total assets 194,901,684 Segment liabilities 39,204,713 26,197,235 12,815,610 55,475,215 182,576,225 Elimination of inter-segment payables (60,582,397) Corporate and other Unallocated liabilities: — Deferred tax liabilities 1,437,087 Income tax payable 299,053 Total liabilities 123,729,968 As of December 31, 2019 (Restated) Corporate and other Primary operating Alumina aluminum Energy Trading segments Total Segment assets 63,155,573 38,886,172 17,496,224 49,658,116 259,780,250 Reconciliation: — Elimination of inter-segment receivables (58,151,596) Other eliminations (106,985) Corporate and other unallocated assets: — Deferred tax assets 1,522,729 Prepaid income tax 93,093 Total assets 203,137,491 Segment liabilities 38,588,473 26,582,436 9,376,820 66,771,364 188,566,428 Elimination of inter-segment payables (58,151,596) Corporate and other unallocated liabilities: — Deferred tax liabilities 1,712,739 Income tax payable 252,454 Total liabilities 132,380,025 The Group mainly operates in Mainland China. Geographical information on operating segments is as follows: For the year ended December 31 (Restated) (Restated) Segment revenue from external customers – Mainland China 171,134,353 184,439,383 177,352,421 – Outside of Mainland China 9,216,559 5,776,015 8,641,832 180,350,912 190,215,398 185,994,253 December 31, December 31, (Restated) Non-current assets (excluding financial assets and deferred tax assets) – Mainland China 147,876,838 142,671,962 – Outside of Mainland China 2,668,533 2,890,338 150,545,371 145,562,300 For the year ended December 31, 2020, revenues of approximately RMB46,262 million (2019: RMB40,567 million, 2018: RMB32,852 million) were derived from entities directly or indirectly owned or controlled by the PRC government including Chinalco. These revenues are mainly attributable to the alumina, primary aluminum, energy and trading segments. There were no individual customers that contributed 10% or more of the Group’s revenue during the years ended December 31, 2018, 2019 and 2020. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 6 INTANGIBLE ASSETS Mineral Mining exploration Goodwill rights rights Others Total Year ended December 31, 2020 Opening net carrying amount 3,510,892 7,972,911 1,001,332 1,279,325 13,764,460 Additions — — — 7,382 7,382 Disposals — (277,715) — — (277,715) Impairment — — — (416) (416) Amortization — (412,599) — (46,883) (459,482) Business combination — — — 89 89 Transfer from property, plant and equipment (Note 7) — 149,544 — 284,743 434,287 Currency translation differences (1,035) (6,308) (12,958) — (20,301) Closing net carrying amount 3,509,857 7,425,833 988,374 1,524,240 13,448,304 As of December 31, 2020 Cost 3,509,857 9,876,722 988,374 1,932,329 16,307,282 Accumulated amortization and impairment — (2,450,889) — (408,089) (2,858,978) Net carrying amount 3,509,857 7,425,833 988,374 1,524,240 13,448,304 Mining Mineral rights and exploration Goodwill others rights Others Total Year ended December 31, 2019 (Restated) Opening net carrying amount 3,510,633 7,682,383 1,113,959 572,390 12,879,365 Additions — 467,640 — 687,746 1,155,386 Reclassification — 115,871 (115,871) — — Disposals — — — (9) (9) Amortization — (294,766) — (44,172) (338,938) Transfer from property, plant and equipment (Note 7) — — — 63,370 63,370 Currency translation differences 259 1,783 3,244 — 5,286 Closing net carrying amount 3,510,892 7,972,911 1,001,332 1,279,325 13,764,460 As of December 31, 2019 Cost 3,510,892 10,016,634 1,001,332 1,640,081 16,168,939 Accumulated amortization and impairment — (2,043,723) — (360,756) (2,404,479) Net carrying amount 3,510,892 7,972,911 1,001,332 1,279,325 13,764,460 For the years ended December 31, 2018, 2019 and 2020, the amortization expenses of intangible assets recognized in profit or loss were analysed as follows: For the year ended December 31 (Restated) (Restated) Cost of sales 265,108 294,766 371,616 General and administrative expenses 30,793 44,172 87,866 295,901 338,938 459,482 As of December 31, 2020, the Group has pledged intangible asset with a net carrying value amounting to RMB0.96 million (December 31, 2019: RMB757 million) for bank and other borrowings as set out in Note 24 to the financial statements. As of December 31, 2020, the Group was in the process of applying for the certificates of mining rights with a carrying value amounting to RMB40 million (December 31, 2019: RMB51 million). There have been no litigations, claims or assessments against the Group for compensation with respect to the use of these rights to date. As of December 31, 2020, the carrying value of these rights only represented approximately 0.02% of the total asset value of the Group (December 31, 2019: approximately 0.02%). Management considers that it is probable that the Group can obtain the relevant ownership certificates from the appropriate authorities. The directors of the Company are of the opinion that the Group has the rights to use the above mining rights, and that there is no material adverse impact on the overall financial position of the Group. Impairment testing of goodwill The lowest level within the Group at which goodwill is monitored for internal management purposes is the operating segment before aggregation. Therefore, goodwill is allocated to the Group’s CGUs and groups of CGUs that are expected to benefit from the synergies of the relevant business combination. A summary of goodwill allocation is presented below: December 31, 2020 December 31, 2019 Alumina Primary aluminum Alumina Primary aluminum Qinghai Branch — 217,267 — 217,267 Guangxi Branch 189,419 — 189,419 — Lanzhou Aluminum Co,. Ltd — 1,924,259 — 1,924,259 PT. Nusapati Prima (“PTNP“) 14,963 — 15,998 — Shanxi Huaxing 1,163,949 — 1,163,949 — 1,368,331 2,141,526 1,369,366 2,141,526 The recoverable amount of a CGU is determined based on value-in-use calculations. These calculation of VIU use pre-tax cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the 5-year period are extrapolated using the estimated growth rate of 2% (2019: 2%) not exceeding the long-term average growth rate for the businesses in which the CGU operates. Other key assumptions applied in the impairment testing include future prices of aluminum and alumina and the discount rate. Management determined these key assumptions based on past performance and their expectations on market development. Furthermore, the Group adopts a pre-tax rate of 12.62% (2019: 12.62%) that reflects specific risks related to CGUs and groups of CGUs as the discount rate. The assumptions above are used in analysing the recoverable amounts of CGUs and groups of CGUs within operating segments. These estimates and judgments may be affected by unexpected changes in the future market or economic conditions. Based on their assessment, there was no impairment of goodwill as of December 31, 2020 and December 31, 2019. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 7 PROPERTY, PLANT AND EQUIPMENT Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total Year ended December 31, 2020 Opening net carrying amount at 1 Jan 2020 (Restated) 40,777,331 49,487,287 429,581 354,825 12,359,952 103,408,976 Reclassifications and internal transfers 3,301,076 7,114,160 809,433 47,546 (11,272,215) — Transfer to intangible assets (Note 6) — — — — (434,287) (434,287) Transfer from right-of-use assets and non-current assets* — 1,982,812 — — — 1,982,812 Transfer to investment properties (Note 8) (78,135) — — — — (78,135) Transfer to other non-current assets — — — — (38,430) (38,430) Transfer to right-of-use assets (Note 20) (140,254) — — — (744,887) (885,141) Additions 296,395 182,427 48,607 10,659 4,083,231 4,621,319 Business combination 1,290 52,357 (18) (28) — 53,601 Government grants (1,646) (40,676) — — — (42,322) Disposals (120,386) (173,789) (27,145) (918) (58,659) (380,897) Depreciation (1,689,768) (5,315,869) (96,999) (49,534) — (7,152,170) Impairment loss (80,641) (326,444) (125) (558) (9,073) (416,841) Currency translation differences (103) (183) (27) (19) — (332) Closing net carrying amount 42,265,159 52,962,082 1,163,307 361,973 3,885,632 100,638,153 As of December 31, 2020 Cost 63,188,254 114,359,882 2,844,604 869,252 4,005,995 185,267,987 Accumulated depreciation and impairment (20,923,095) (61,397,800) (1,681,297) (507,279) (120,363) (84,629,834) Net carrying amount 42,265,159 52,962,082 1,163,307 361,973 3,885,632 100,638,153 * Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total As of December 31, 2019 (Restated) Opening net carrying amount 38,748,649 47,847,491 537,300 159,291 12,315,564 99,608,295 Reclassifications and internal transfers 3,869,147 5,125,998 (29,181) 207,546 (9,173,510) — Government grants (7,211) (69,012) — — — (76,223) Transfer to right-of-use assets (107,368) (495) — — — (107,863) Transfer to intangible assets (Note 6) — — — — (63,370) (63,370) Transfer to investment properties (Note 8) (179,564) — — — — (179,564) Transfer from right-of-use assets — 1,674,260 — — — 1,674,260 Additions 576,107 636,555 47,527 12,944 9,351,884 10,625,017 Disposal of subsidiaries (85,851) (73,432) (3,270) (239) — (162,792) Disposals (79,280) (378,817) (19,672) (939) (70,201) (548,909) Depreciation (1,852,041) (5,121,970) (103,126) (23,639) — (7,100,776) Impairment losses (105,346) (153,394) (14) (185) (415) (259,354) Currency translation differences 89 103 17 46 — 255 Closing net carrying amount 40,777,331 49,487,287 429,581 354,825 12,359,952 103,408,976 As of December 31, 2019 Cost 60,216,498 101,630,516 2,284,564 830,866 12,511,787 177,474,231 Accumulated depreciation and impairment (19,439,167) (52,143,229) (1,854,983) (476,041) (151,835) (74,065,255) Net carrying amount 40,777,331 49,487,287 429,581 354,825 12,359,952 103,408,976 For the years ended December 31, 2018, 2019 and 2020, depreciation expenses recognized in profit or loss were analysed as follows: For the year ended December 31 (Restated) (Restated) Cost of sales 7,296,290 6,930,180 6,991,119 General and administrative expenses 202,792 163,989 155,916 Selling and distribution expenses 6,605 6,607 5,135 7,505,687 7,100,776 7,152,170 As of December 31, 2020, the Group was in the process of applying for the ownership certificates of buildings with a net carrying value of RMB7,616 million (December 31, 2019: RMB7,315 million). There has been no litigations, claims or assessments against the Group for compensation with respect to the use of these buildings as of the date of approval of these financial statements. As of December 31, 2020, the carrying value of the above buildings only represented approximately 3.65% of the Group’s total asset value (December 31, 2019: 3.60% (restated)). Management considers that it is probable that the Group will be able to obtain the relevant ownership certificates from the appropriate authorities. The directors of the Company are of the opinion that the Group has the rights to use the above property, plant and equipment, and that there is no material adverse impact on the overall financial position of the Group. For the year ended December 31, 2020, interest expenses of RMB124 million (2019: RMB289 million, 2018: RMB518 million) arising from borrowings attributable to the construction of property, plant and equipment during the year were capitalized at annual rates ranging from 4.00% to 6.68% (2019: 4.00% to 6.96%, 2018: 4.54% to 7.00%), and were included in additions to property, plant and equipment. As of December 31, 2020, the Group has pledged property, plant and equipment at a net carrying value amounting to RMB5,191 million (December 31, 2019: RMB4,946 million) for bank and other borrowings as set out in Note 24 to the financial statements. As of December 31, 2020, the carrying value of temporarily idle property, plant and equipment of the Group was RMB750 million (December 31, 2019: RMB952 million). Impairment testing for property, plant and equipment When any indicators of impairment are identified, property, plant and equipment are reviewed for impairment based on each CGU. The CGU is an individual plant or entity. The carrying values of these individual plants or entities were compared to the recoverable amounts of the CGUs, which were based predominantly on value-in-use. Value-in-use calculations use pre-tax cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the same cash flow projections of the fifth year. Other key assumptions applied in the impairment testing include the future prices of aluminum and alumina and the discount rate. Management determined these key assumptions based on past performance and their expectations on market development. Further, the Group adopts a pre-tax rate of 10.16% (2019: 10.16%) that reflects specific risks related to the CGUs as discount rate. These estimates and judgments may be affected by unexpected changes in the future market or economic conditions. In addition to the CGUs for which impairment was tested based on value-in-use, the Group also assessed the recoverable amounts for property, plant and equipment to be disposed or abandoned soon, and recognized impairment losses of RMB417 million in 2020 (2019: RMB259 million, 2018: RMB46 million). |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT PROPERTIES | |
INVESTMENT PROPERTIES | 8 INVESTMENT PROPERTIES Buildings Land use rights Total Year ended December 31, 2020 Opening net carrying amount 414,168 1,089,098 1,503,266 Additions — — — Transfer from property, plant and equipment (Note 7) 78,135 — 78,135 Transfer from right-of-use assets (Note 20) — 45,885 45,885 Disposals — (1,005) (1,005) Depreciation (10,814) (13,591) (24,405) Closing net carrying amount 481,489 1,120,387 1,601,876 As of December 31, 2020 Cost 601,850 1,221,710 1,823,560 Accumulated depreciation and impairment (120,361) (101,323) (221,684) Net carrying amount 481,489 1,120,387 1,601,876 Buildings Land use right Total Year ended December 31, 2019 Opening net carrying amount 235,974 920,032 1,156,006 Additions 44,063 — 44,063 Transfer from property, plant and equipment (Note 7) 179,564 — 179,564 Transfer from right-of-use assets (Note 20) — 239,765 239,765 Disposal (36,949) (52,537) (89,486) Depreciation (8,484) (18,075) (26,559) Impairment loss — (87) (87) Closing net carrying amount 414,168 1,089,098 1,503,266 As of December 31, 2019 Cost 508,705 1,159,343 1,668,048 Accumulated depreciation and impairment (94,537) (70,245) (164,782) Net carrying amount 414,168 1,089,098 1,503,266 The Group’s investment properties consist of land use rights held for rental income and buildings leased to third parties under operating leases. As of December 31, 2020, the Group was in the process of applying for the ownership certificates of investment properties with a net carrying value of RMB59 million (December 31, 2019: RMB255 million). There have been no litigations, claims or assessments against the Group for compensation with respect to the use of these rights to date. As of December 31, 2020, the carrying value of these investment properties only represented approximately 0.03% of the total asset value of the Group (December 31, 2019: 0.13%). Management considers that it is probable that the Group can obtain the relevant ownership certificates from the appropriate authorities. The directors of the Company are of the opinion that the Group has the rights to use the above investment properties, and that there is no material adverse impact on the overall financial position of the Group. As of December 31, 2020, the fair value of the buildings was approximately RMB926 million (December 31, 2019: RMB1,071 million) which was estimated based on the market price of comparable buildings in the nearby area. The directors of the Company estimated that the fair value of the land use right was approximately RMB1,296 million (December 31, 2019: RMB1,269 million), which was determined based on the transaction prices for similar lands nearby. |
INVESTMENTS IN JOINT VENTURES A
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | 9 INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (a) Investments in joint ventures Movements in investments in joint ventures are as follows: As of January 1 3,385,582 3,393,349 Capital injections 4,333 50,000 Disposal — (114,604) Share of profits for the year 180,502 270,115 Share of changes in reserves 1,491 8,746 Dividends declared (197,355) (222,024) Impairment — — As of December 31 3,374,553 3,385,582 As of December 31, 2020, all joint ventures of the Group were unlisted. As of December 2020, particulars of the Group’s material joint venture is as follows: Effective equity Place of Registered interest held establishment and paid-in Principal Ownership Voting Profit Name and operation capital activities interest power sharing Guangxi Huayin Aluminum Co., Ltd. *(“Guangxi Huayin”) (廣西華銀鋁業有限公司) PRC/ 2,441,987 Manufacturing 33 % 33 % 33 % * Guangxi Huayin, which is considered a material joint venture of the Group, is accounted for using the equity method. The English names represent the best effort by management of the Group in translating the Chinese names of the companies as they do not have official English names. The following table illustrates the summarised financial information in respect of Guangxi Huayin: December 31, 2020 December 31, 2019 Cash and cash equivalents 247,680 261,447 Other current assets 970,096 1,222,290 Current assets 1,217,776 1,483,737 Non-current assets 5,361,592 5,249,101 Financial liabilities 750,000 1,106,593 Other current liabilities 772,700 960,077 Current liabilities 1,522,700 2,066,670 Non-current liabilities 580,419 414,299 Net assets 4,476,249 4,251,869 Reconciliation to the Group’s interest in the joint venture: Proportion of the Group’s ownership 33.00 % 33.00 % Group’s share of net assets of the joint venture 1,477,162 1,403,117 Carrying amount of the investment 1,477,162 1,403,117 For the year ended December 31 Revenue 5,173,801 5,226,893 4,631,737 Gross profit 979,991 1,303,254 800,965 Interest income 6,365 9,781 7,388 Depreciation and amortization 509,556 525,109 531,512 Interest expenses 77,438 63,351 51,855 Profit before income tax 504,875 621,315 195,189 Income tax 78,827 79,300 21,152 Other comprehensive income — — — Total comprehensive income for the year 426,048 542,015 174,037 Dividend received 132,000 198,000 99,000 The following table illustrates the aggregate financial information of the Group’s joint ventures that are not individually material: Share of the joint ventures’ profits for the year 121,120 91,250 Share of the joint ventures’ total comprehensive income 121,120 91,250 Aggregate carrying amount of the Group’s investments in joint ventures 1,897,391 1,870,538 There were no material contingent liabilities relating to the Group’s interests in the joint ventures and the joint ventures themselves. (b) Investments in associates Movements in investments in associates are as follows: December 31, 2020 December 31, 2019 As of January 1 9,512,401 6,363,462 Investment to Yunnan Aluminum — 1,491,736 Investment to Heqing Yixin Aluminum Industry Co.,Ltd. (鶴慶溢鑫鋁業有限公司) (“Yixin Aluminum”) — 941,160 Capital injections, other than to Yunnan Aluminum and Yixin Aluminum — 729,368 Subsidiaries changed into associates 7,473 16,283 Capital reduction (14,850) (20,250) Share of profits for the year 145,737 48,767 Dividends declared (480,397) (50,314) Share of changes in reserves 3,046 (7,811) As of December 31 9,173,410 9,512,401 As of December 31, 2020, except for Yunnan Aluminum, all associates of the Group were unlisted. As of December 31, 2020, no associate was individually material to the Group except for Yunnan Aluminum. As of December 31, 2020, particulars of the Group’s material associate is as follows: Place of Effective equity interest held establishment and Registered and Principal Ownership Voting Profit Name operation paid-in capital activities interest power sharing Yunnan Aluminum PRC/Mainland China 3,128,207 Manufacturing 10.04 % 10.04 % 10.04 % Yunnan Aluminum, which is considered a material associate of the Group, is accounted for using the equity method. The English names represent the best effort by management of the Group in translating the Chinese names of the companies as they do not have official English names. The following table illustrates the summarised financial information in respect of Yunnan Aluminum: December 31, 2020 December 31, 2019 Cash and cash equivalents 1,186,778 4,052,271 Other current assets 4,848,942 5,081,477 Current assets 6,035,720 9,133,748 Non-current assets 39,960,249 35,706,818 Financial liabilities 5,632,439 8,502,318 Other current liabilities 11,728,170 12,012,348 Current liabilities 17,360,609 20,514,666 Non-current liabilities 10,658,126 7,254,037 Net assets 17,977,234 17,071,863 Non-controlling interests 2,504,346 2,213,934 Reconciliation to the Group’s interest in the associate: Proportion of the Group’s ownership 10.04 % 10.04 % Group’s share of net assets of the associate 1,553,478 1,491,736 Carrying amount of the investment 1,553,478 1,491,736 For the year ended December 31 Revenue 24,283,623 29,567,864 Gross profit 3,241,005 4,084,535 Interest income 46,865 35,345 Depreciation and amortization 1,381,066 1,571,308 Interest expenses 945,786 649,600 Profit before income tax 596,546 1,032,497 Income tax 51,340 122,384 Other comprehensive income 28,183 (36,602) Total comprehensive income for the year 573,389 873,511 Dividend received — — The following table illustrates the aggregate financial information of the Group’s associates that are not individually material: December 31, 2020 December 31, 2019 (Restated) Share of the associates’ profits 83,518 48,767 Share of the associates’ total comprehensive income 83,518 48,767 Aggregate carrying amount of the Group’s investments in the associates 7,619,932 8,020,665 There were no material contingent liabilities relating to the Group’s interests in the associates and the associates themselves. As of December 31, 2020, the Group had pledged investments in associates amounting to RMB396 million (December 31, 2019: RMB539 million) as set out in Note 24 to the financial statements. |
OTHER FINANCIAL ASSETS MEASURED
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE | |
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE | 10 OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE December 31, 2020 December 31, 2019 Listed equity investments, at fair value Dongxing securities Co., Ltd.(東興證券股份有限公司) 8,812 8,853 Unlisted equity investments, at fair value Sanmenxia Dachang Mining Co., Ltd.(三門峽達昌礦業有限公司) 20,921 20,905 Inner Mongolia Ganqimaodu Port Development Co., Ltd.(內蒙古甘其毛都港務發展股份有限公司) 16,669 30,410 Yinchuan Economic and Technological Development Zone Investment Holding Co., Ltd. (銀川經濟技術開發區投資控股有限公司) 17,234 20,000 China Color International Alumina Development Co., Ltd.(中色國際氧化鋁開發有限公司) 6,636 6,614 Luoyang Jianyuan Mining Co., Ltd. (洛陽建元礦業有限公司) 4,975 4,960 NingXia Electric Power Trading Center Co., Ltd(寧夏電力交易中心有限公司) 4,305 - Ningxia Ningdian Logistics Transportation Co., Ltd.(寧夏寧電物流運輸有限公司) 1,640 1,640 Chinalco Innovative Development Investment Company Limited (“Chinalco Innovative”) (中鋁創新開發投資有限公司) 329,234 365,681 Size Industry Investment Fund (Note) 980,498 1,653,251 Fangchenggang Chisha Pier Co., Ltd.(防城港赤沙碼頭有限公司) 700 700 Xingxian Shengxing Highway Investment Management Co., Ltd. (興縣盛興公路投資管理有限公司) 135,079 126,237 1,517,891 2,230,398 1,526,703 2,239,251 The above equity investments were irrevocably designated at fair value through other comprehensive income as the Group considers these investments to be strategic in nature. Note: During the year ended December 31, 2020, Size Industry Investment Fund repaid capital of RMB700 million, and dividend income of RMB82 million. The remaining capital balance was all repaid in February 2021. |
DEFERRED TAX
DEFERRED TAX | 12 Months Ended |
Dec. 31, 2020 | |
DEFERRED TAX | |
DEFERRED TAX | 11 DEFERRED TAX Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred taxes relate to the same tax authority. The movements in deferred tax assets and liabilities during the year ended December 31, 2020 without taking into consideration the offsetting of balances within the same tax jurisdiction, are as follows: Movements in deferred tax assets: Provision Accrued Unrealized profit at for impairment expenses Tax losses consolidation Others Total As of December 31,2018 385,843 242,370 616,237 169,876 182,370 1,596,696 Business combination under common control 71 270 — — 5 346 As of January 1, 2019 (Restated) 385,914 242,640 616,237 169,876 182,375 1,597,042 Acquisition of subsidiaries 190 (31) — — 7 166 Credit/(charged) to profit or loss 59,218 (33,214) (40,047) (521) (2,955) (17,519) As of December 31, 2019 445,322 209,395 576,190 169,355 179,427 1,579,689 As of January 1, 2020 445,322 209,395 576,190 169,355 179,427 1,579,689 Acquisition of subsidiaries — — — — 36 36 Credit/(charged) to profit or loss 65,196 (99,810) (105,811) 56,731 51,116 (32,578) As of December 31, 2020 510,518 109,585 470,379 226,086 230,579 1,547,147 Movements in deferred tax liabilities: Fair value Fair value Depreciation adjustments arising Interest changes of and from acquisition of capitalization financial assets amortization subsidiaries total As of January 1, 2019 43,832 5,606 32,489 1,784,919 1,866,846 Exchange realignment — — — 416 416 Credited to other comprehensive income — 14,642 — — 14,642 Charged to profit or loss (5,825) (12,517) (8,616) (85,247) (112,205) As of December 31, 2019 38,007 7,731 23,873 1,700,088 1,769,699 As of January 1, 2020 38,007 7,731 23,873 1,700,088 1,769,699 Exchange realignment — — — (1,406) (1,406) Charged to other comprehensive income — (3,066) — — (3,066) Acquisition of subsidiaries — — — 1,274 1,274 Credited/(charged) to profit or loss (12,167) 4,235 13,234 (268,804) (263,502) As of December 31, 2020 25,840 8,900 37,107 1,431,152 1,502,999 The temporary differences associated with investments in the Group’s associates and joint ventures, for which a deferred tax liability has not been recognized in the periods presented, aggregate to RMB317 million (2019: RMB827 million), considering dividends from investments in associates and joint ventures are exempted from the PRC income tax and the Group has no plan to dispose any of these investees in the foreseeable future. For presentation purposes, certain deferred tax assets and liabilities have been offset in the consolidated statement of financial position. The following is an analysis of the deferred tax balances of the Group for financial reporting purposes: December 31, December 31, (Restated) Net deferred tax assets 1,481,235 1,522,729 Net deferred tax liabilities 1,437,087 1,712,739 As of December 31, 2020, the Group has not recognized deferred tax assets of RMB1,514 million (December 31, 2019: RMB1,467 million) in respect of accumulated tax losses amounting to RMB6,593 million (December 31, 2019: RMB6,210 million) arising in Mainland China that can be carried forward for offsetting against future taxable income, and deferred tax assets of RMB2,032 million (December 31, 2019: RMB2,287 million) in respect of deductible temporary differences amounting to RMB8,848 million (December 31, 2019: RMB9,160 million) as it was considered not probable that those assets would be realized. As of December 31, 2020, the expiry profile of these tax losses not recognized for deferred tax assets was analysed as follows: December 31, December 31, Expiring in 2020 — 690,646 2021 213,992 958,188 2022 795,012 1,211,002 2023 882,156 997,376 2024 2,110,447 2,353,070 2025 2,591,903 — 6,593,510 6,210,282 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 12 OTHER NON-CURRENT ASSETS December 31, 2020 December 31, 2019 (Restated) Financial assets – Long-term receivables 127,754 128,673 Prepayment for mining rights 809,722 813,822 Long-term prepaid expenses 654,291 650,062 Deferred losses for sale and leaseback transactions* 396,368 766,546 Others 1,177,785 849,819 3,038,166 3,080,249 3,165,920 3,208,922 * As disclosed in Note 20, the Group entered into several sale and leaseback agreements which constitute finance leases in previous years. The deferred losses arising from the sale are classified as other non-current assets and were amortized over the useful lives of the assets leased back. As of December 31, 2020 and December 31, 2019, long-term receivables were denominated in RMB and non-interest-bearing. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
INVENTORIES | 13 INVENTORIES December 31, 2020 December 31, 2019 (Restated) Raw materials 7,450,822 6,825,871 Work-in-progress 7,290,838 7,847,599 Finished goods 4,830,076 4,501,633 Spare parts 789,136 842,734 Packaging materials and others 25,709 57,870 20,386,581 20,075,707 Less: provision for impairment of inventories (529,827) (560,066) 19,856,754 19,515,641 Movements in the provision for impairment of inventories are as follows: December 31, 2020 December 31, 2019 As of January 1 560,066 811,197 Provision for impairment of inventories 1,492,153 1,503,406 Disposal of subsidiary — (772) Reversal arising from increase in net realizable value (170,766) (340,134) Written off upon sales of inventories (1,351,626) (1,413,631) As of December 31 529,827 560,066 As of December 31, 2020 and December 31, 2019, no inventories were pledged for any borrowings. |
TRADE RECEIVABLES AND NOTES REC
TRADE RECEIVABLES AND NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
TRADE RECEIVABLES AND NOTES RECEIVABLE | |
TRADE RECEIVABLES AND NOTES RECEIVABLE | 14 TRADE RECEIVABLES AND NOTES RECEIVABLE December 31, 2020 December 31, 2019 (Restated) Trade receivables 5,680,558 5,290,178 Less: impairment (933,563) (715,597) 4,746,995 4,574,581 Notes receivable 4,546,223 2,844,637 9,293,218 7,419,218 As of December 31, 2020, other than trade and notes receivables amounting to RMB 685 million denominated in USD (December 31, 2019: RMB1,111 million which were denominated in USD), all other trade and notes receivables were denominated in RMB. Trade and notes receivables due from the Group’s joint ventures and associates amounted to RMB800 million (December 31, 2019: RMB788 million) and RMB17 million (December 31, 2019: RMB0.03 million), respectively, which are payable on credit terms comparable to those offered to the major customers of the Group. As of December 31, 2020, the Group pledged notes receivable amounting to RMB1,499 million (December 31, 2019: RMB667 million) as set out in Note 24 to the financial statements. Trade receivables and notes receivable are non-interest-bearing and generally with credit terms of 3 to 12 months. Certain of the Group’s sales were on advance payments or documents against payment. In some cases, these terms are extended for qualifying long-term customers that have met specific credit requirements. As of December 31, 2020, the ageing analysis of trade receivables based on invoice date was as follows: For the year ended December 31 (Restated) Within 1 year 2,978,123 2,923,616 Between 1 and 2 years 1,031,050 742,477 Between 2 and 3 years 183,288 377,836 Over 3 years 1,488,097 1,246,249 5,680,558 5,290,178 Less: loss allowance for impairment (933,563) (715,597) 4,746,995 4,574,581 An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groups of various customer segments with similar loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit or other forms of credit insurance). The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. The Group also assesses impairment loss individually if there is evidence of significant increases in credit risk at an individual level. Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix: As of December 31, 2020 Gross carrying Expected credit Expected credit amount losses losses loss rate (%) Alumina and primary aluminum Within 1 year 245,345 7,104 2.90 Between 1 and 2 years 126,165 12,084 9.58 Between 2 and 3 years 13,153 2,325 17.68 Over 3 years 108,590 103,207 95.04 493,253 124,720 / Trading Within 1 year 401,267 9,753 2.43 Between 1 and 2 years 1,132 110 9.72 Between 2 and 3 years — — — Over 3 years 4,660 4,635 99.46 407,059 14,498 / Energy Within 1 year 231,232 1,204 0.52 Between 1 and 2 years 33,024 1,710 5.18 Between 2 and 3 years 28,177 4,806 17.06 Over 3 years 47,084 44,493 94.50 339,517 52,213 / Corporate and other operating segments Within 1 year 22,600 1,774 7.85 Between 1 and 2 years 2,339 635 27.15 Between 2 and 3 years 13,320 5,010 37.61 Over 3 years 1,593 1,346 84.49 39,852 8,765 / 1,279,681 200,196 Individually assessed trade receivables 4,400,877 733,367 5,680,558 933,563 Set out below is the information about individually assessed trade receivables: As of December 31, 2020 Gross carrying Expected credit Expected credit amount losses losses loss rate (%) State Grid Ningxia Electric Power Company 2,077,715 5,704 0.27 China Aluminum ZiBo International Trading Co., Ltd. 727,682 — — Zhuhai Hongfan nonferrous metal Chemical Co., Ltd. 270,419 270,419 100.00 Wiseson Resources (Singapore) PTE., Ltd. 266,345 266,345 100.00 Aluminum Industry Co., Ltd., Luoyang, Henan 247,163 10,005 4.05 Xinjiang Jiarun Resources Holdings Co., Ltd. 230,189 — — Inner Mongolia Power (Group) Co., Ltd. 214,471 506 0.24 Guizhou Jinpingguo Aluminum Rod Co., Ltd. 111,138 65,946 59.34 Others 255,755 114,442 44.75 4,400,877 733,367 / The Group has no individual provision for impairment of notes receivables. The Group measures the provision for loss on the basis of expected credit losses. The Group considers that notes receivables are not exposed to significant credit risk and has limited default risk. Movements in the loss allowance for impairment of trade receivables are as follows: December 31, 2020 December 31, 2019 (Restated) As of January 1 715,597 659,261 Impairment loss 403,633 237,504 Write off (122,786) (98,554) Reversal (64,661) (83,095) Others 1,780 481 As of December 31 933,563 715,597 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | 15 OTHER CURRENT ASSETS December 31, 2020 December 31, 2019 (Restated) Financial assets — Deposits paid to suppliers 558,073 501,918 — Dividends receivable 412,736 58,092 — Receivables from disposal of assets 20,950 1,969,833 — Entrusted loans and loans receivable from third parties 1,530,452 1,544,070 — Entrusted loans and loans receivable from related parties 1,264,423 1,309,095 — Interest receivables 39,531 40,936 — Recoverable reimbursement for freight charges 283,460 223,884 — Receivable of electricity price adjustment 494,595 619,206 — Receivable from disposal of aluminum capacity quota 538,655 — — Other financial assets 1,064,763 1,093,480 6,207,638 7,360,514 Less: impairment allowance (2,224,511) (1,696,735) 3,983,127 5,663,779 Advances to employees 17,043 17,207 Deductible input value added tax receivables 1,379,288 2,424,648 Prepaid income tax 116,574 93,093 Prepayments to related parties for purchases 79,435 229,324 Prepayments to suppliers for purchases and others 725,776 635,363 Others 49,598 118,100 2,367,714 3,517,735 Less: impairment allowance (1,621) (2,715) 2,366,093 3,515,020 Total other current assets 6,349,220 9,178,799 As of December 31, 2020, except for amounts included in other current assets amounting to RMB152 million, which were denominated in USD (December 31, 2019: other current assets amounting to RMB37 million denominated in USD), remaining amounts in other current assets were denominated in RMB . As of December 31, 2020, except for entrusted loans and loans receivable (December 31, 2019: except for entrusted loans and loans receivable) which were interest-bearing assets, all amounts in other current assets were non-interest-bearing (December 31, 2019: all non-interest-bearing). As of December 31, 2020, the ageing analysis of financial assets included in other current assets was as follows: December 31, 2020 December 31, 2019 (Restated) Within 1 year 2,386,289 1,443,338 Between 1 and 2 years 142,887 882,798 Between 2 and 3 years 191,228 151,974 Over 3 years 3,487,234 4,882,404 6,207,638 7,360,514 Less: provision for impairment (2,224,511) (1,696,735) 3,983,127 5,663,779 Movements in the provision for impairment in other current assets are as follows: December 31, 2020 December 31, 2019 (Restated) At beginning of year 1,699,450 1,744,503 Impairment loss 656,873 42,897 Write off (62,318) Reversal (17,011) (26,290) Others — 658 As of December 31 2,226,132 1,699,450 Financial assets included in other current assets at amortized cost are subject to impairment under the general approach and they are classified within the following stages for measurement of ECLs. Gross carrying Expected credit As of December 31, 2020 amount losses Stage 1 – 12 months expected credit loss 2,218,891 5,961 Stage 2 – life time expected credit loss 578,213 14,966 Stage 3 – life time expected credit loss with credit-impaired 3,410,534 2,203,584 6,207,638 2,224,511 As of December 31, 2019 (Restated) Gross carrying amount Expected credit losses Stage 1 – 12 months expected credit loss 1,524,602 — Stage 2 – life time expected credit loss 4,097,994 82,070 Stage 3 – life time expected credit loss with credit-impaired 1,737,918 1,614,665 7,360,514 1,696,735 |
CASH AND CASH EQUIVALENTS AND R
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 16 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH December 31, 2020 December 31, 2019 (Restated) Restricted cash 1,056,037 1,305,781 Cash and cash equivalents 9,631,152 7,778,853 10,687,189 9,084,634 Reconciliation to the consolidated statement of cash flow: The above figures reconcile to the amount of cash and cash equivalent shown in the consolidated statement of cash flows at the end of the financial year as follows: December 31, 2020 December 31, 2019 (Restated) Balances shown in the consolidated balance sheet 9,631,152 7,778,853 Bank overdrafts (899,955) — Balances per consolidated statement of cash flows 8,731,197 7,778,853 Restricted cash mainly represented deposits held for use in issued notes payable and letters of credit. As of December 31, 2020, cash and cash equivalent and restricted cash of the Group were denominated in the following currencies: December 31, 2020 December 31, 2019 (Restated) RMB 9,581,174 7,878,530 USD 1,095,713 1,195,720 HKD 2,763 4,423 EUR 2,055 1,943 Others 5,484 4,018 10,687,189 9,084,634 Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances, time deposits and restricted cash are deposited with credit worthy banks with no recent history of default. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2020 | |
SHARE CAPITAL | |
SHARE CAPITAL | 17 SHARE CAPITAL As of December 31, 2019 and December 31, 2020, all issued shares were registered and fully paid. Both A shares and H shares rank pari passu with each other. The number of the Company’s authorised and issued ordinary shares was 17,022,672,951 at par value of RMB1.00 per share as of December 31, 2020. |
RESERVES
RESERVES | 12 Months Ended |
Dec. 31, 2020 | |
RESERVES | |
RESERVES | 18 RESERVES The amounts of the Group’s reserves and the movements therein for the current and prior years are presented in the consolidated statement of changes in equity of the financial statements. |
INTEREST-BEARING LOANS AND BORR
INTEREST-BEARING LOANS AND BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
INTEREST-BEARING LOANS AND BORROWINGS | |
INTEREST-BEARING LOANS AND BORROWINGS | 19 INTEREST-BEARING LOANS AND BORROWINGS December 31, 2020 December 31, 2019 Long-term loans and borrowings Lease liabilities (Note 20) 7,086,151 8,369,262 Medium-term notes and bonds (Note (b)) – Unsecured 18,975,379 16,736,755 Long-term bank and other loans (Note (a)) – Secured (Note (f)) 9,216,299 13,254,721 – Guaranteed (Note (e)) 4,846,446 3,948,400 – Unsecured 28,951,819 21,632,766 43,014,564 38,835,887 Total long-term loans and borrowings 69,076,094 63,941,904 Current portion of lease liabilities (Note 20) (828,272) (1,358,654) Current portion of medium-term notes and bonds (7,100,711) — Current portion of long-term bank and other loans (3,629,014) (3,339,687) (11,557,997) (4,698,341) Non-current portion of long-term loans and borrowings 57,518,097 59,243,563 December 31, 2020 December 31, 2019 (Restated) Short-term loans and borrowings Bank and other loans (Note (c)) – Secured (Note (f)) 863,738 465,000 – Guaranteed (Note (e)) 50,000 — – Unsecured* 19,824,292 20,773,166 20,738,030 21,238,166 Short-term bonds, unsecured (Note (d)) 2,411,256 9,331,488 Gold leasing arrangements — 7,018,609 Current portion of lease liabilities (Note 20) 828,272 1,358,654 Current portion of medium-term notes 7,100,711 — Current portion of long-term bank and other loans 3,629,014 3,339,687 13,969,253 21,048,438 Total short-term borrowings and current portion of long-term loans and borrowings 34,707,283 42,286,604 As of December 31, 2020, except for loans and borrowings of the Group amounting to RMB15 million (December 31, 2019: RMB17million) and RMB1,312 million (December 31, 2019:RMB4,006 million) which were denominated in JPY and USD, respectively, all loans and borrowings were denominated in RMB. As of December 31, 2020, included in the Group’s interest-bearing loans and borrowings are amounts due to subsidiaries of Chinalco RMB4,229 million (December 31, 2019: RMB4,181 million), as set out in Note 36(b). There were no interest-bearing loans and borrowings obtained from joint ventures and associates as of December 31, 2020 and 2019. As of December 31, 2020, Shangdong Huayu Alloy Materials Co. Ltd. (“Shangdong Huayu”), a subsidiary of the Company did not repay short-term secured bank loans with principal amount of RMB583 million, which resulted in an event of default. In October 2020, the lending bank has applied to and obtained approval from the Intermediate Court of Linyi City, Shangdong Province (“Linyi Court”) of enforcing their rights through selling Shandong Huayu’s transferrable quota eligible for production of 135,000 tons aluminum products in the PRC through public tender. Yunnan Aluminum, an associate of the Group, has successfully awarded the tender at a consideration of RMB 539 million. The consideration in cash was received by Linyi Court before the year end, which will be transferred to the lending banks for repayment of the bank loans. Note: (a) Long-term bank and other loans (i) The maturity of long-term bank and other loans is set out below: Loans from banks and other Total of long-term bank and financial institutions Other loans other loans December 31 December 31 December 31 December 31 December 31 December 31 Within 1 year 3,626,564 3,337,202 2,450 2,485 3,629,014 3,339,687 Between 1 and 2 years 6,700,237 7,523,290 2,450 2,485 6,702,687 7,525,775 Between 2 and 5 years 15,630,739 9,151,573 7,350 7,455 15,638,089 9,159,028 Over 5 years 17,042,324 18,806,428 2,450 4,969 17,044,774 18,811,397 42,999,864 38,818,493 14,700 17,394 43,014,564 38,835,887 (ii) Other loans were provided by local bureaus of the Ministry of Finance to the Group. The weighted average annual interest rate of long-term bank and other loans for the year ended December 31, 2020 was 4.9% (2019: 5.2%). (b) Medium-term notes and bonds Outstanding medium-term bonds of the Group as of December 31, 2020 are summarised as follows: Effective Face value (RMB)/maturity interest rate December 31, 2020 December 31, 2019 2018 Medium-term notes 2,000,000/2021 5.84 % 1,998,802 1,992,339 2019 Medium-term bonds 2,000,000/2024 4.31 % 1,985,264 1,982,228 2018 Medium-term bonds 1,100,000/2021 4.66 % 1,099,284 1,098,218 2018 Medium-term bonds 900,000/2023 5.06 % 898,807 898,315 2018 Medium-term bonds 1,400,000/2021 4.30 % 1,398,160 1,397,319 2018 Medium-term bonds 1,600,000/2023 4.57 % 1,597,071 1,596,192 2019 Medium-term bonds 2,000,000/2022 3.84 % 1,999,196 1,998,604 2019 Medium-term bonds 1,000,000/2022 3.50 % 1,997,265 1,997,097 2019 Medium-term bonds 900,000/2023 4.99 % 999,623 999,462 2020 Medium-term bonds 900,000/2023 3.04 % 897,972 — 2020 Medium-term bonds 500,000/2025 3.31 % 499,853 — 2020 Medium-term bonds 1,000,000/2023 3.07 % 999,617 — 2018 Hong Kong Medium-term bonds 2,785,840/2021 5.25 % 2,604,465 2,776,981 18,975,379 16,736,755 Medium-term notes and bonds were issued for capital expenditure and operating cash flows purposes, as well as for the purpose of re-financing of bank loans. (c) Short-term bank and other loans Other loans were entrusted loans provided by state-owned companies to the Group. The weighted average annual interest rate of short-term bank and other loans for the year ended December 31, 2020 was 3.46% (2019: 4.29%). (d) Short-term bonds Outstanding short-term bonds as of December 31, 2020 are summarised as follows: Effective December 31, Face value (RMB)/maturity interest rate December 31, 2019 Ningxia short-term bonds 300,000/2020 3.97 % — 300,000 Short-term bonds 1,000,000/2020 2.45 % — 1,008,161 Short-term bonds 2,000,000/2020 2.63 % — 2,013,127 Short-term bonds 3,000,000/2020 2.00 % — 3,008,384 Short-term bonds 3,000,000/2020 2.30 % — 3,001,816 Short-term bonds 500,000/2021 1.40 % 501,781 — Short-term bonds 1,000,000/2021 2.30 % 1,002,925 — Short-term bonds 500,000/2021 1.20 % 500,553 — Short-term bonds 400,000/2021 2.46 % 405,997 — 2,411,256 9,331,488 All the above short-term bonds were issued for working capital needs. (e) Guaranteed interest-bearing loans and borrowings Details of the interest-bearing loans and borrowings in which the Group received guarantees are set out as follows: Guarantors December 31, 2020 December 31, 2019 Long-term loans Yinyi Fengdian, Neimenggu, Alashan (Note (iv)) 144,000 150,000 Ningxia Energy (Note (i)) 1,134,400 1,274,400 Yinxing Energy (Note (i)) 19,000 46,000 Baotou Aluminum Limited Company (包頭鋁業有限公司) and Baotou Communications Investment Group Limited Company (包頭交通投資集團有限公司) (Note (ii)) 1,137,500 1,250,000 The Company and Hangzhou Jinjiang Group Limited Company (“Hangzhou Jinjiang”, 杭州錦江集團有限公司) (Note (iii)) — 10,000 Hangzhou Jinjiang (Note (v)) — 123,500 Qingzhen Industrial Investment Co., Ltd. (清鎮市工業投資有限公司) (Note (v)) — 47,250 Guizhou Industrial Investment Group Co., Ltd. (貴州產業投資集團有限責任公司) (Note (v)) — 47,250 The Company 2,411,546 1,000,000 4,846,446 3,948,400 Short-term loans Ningxia Energy (Note (i)) 50,000 — 4,896,446 3,948,400 Notes: (i) The guarantor is a subsidiary of the Company. (ii) The guarantors are a subsidiary of the Company and a third party respectively. (iii) The guarantors are the Company and a third party respectively. (iv) The guarantors are subsidiaries of the Company. (v) The guarantor is a third party. · The English names represent the best effort by management of the Group in translating the Chinese names of the Companies as they do not have any official English names. (f) The assets pledged for secured bank and other borrowings were set out in Note 24 to the financial statements . |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2020 | |
LEASE | |
LEASE | 20 LEASE The Group as a lessee The Group has lease contracts for various items of plant and machinery, motor vehicles and other equipment used in its operations. Lump sum payments were made upfront to acquire the leased land from the owners with lease periods of 20 to 30 years, and no ongoing payments will be made under the terms of these land leases. Leases of plant and machinery generally have lease terms between 3 and 5 years, while motor vehicles generally have lease terms between 2 and 5 years. Other equipment generally has lease terms of 12 months or less and/or is individually of low value. Generally, the Group is restricted from assigning and subleasing the leased assets outside the Group. There are several lease contracts that include extension and termination options and variable lease payments, which are further discussed below. (a) Right-of-use assets The carrying amounts of the Group’s right-of-use assets and the movements during 2020 and 2019 are as follows: Buildings Machinery Land use rights Total As of January 1, 2020 287,255 3,756,305 11,846,877 15,890,437 Additions 15,023 8,831 52,925 76,779 Transfer from property, plant and equipment (Note 7) — — 885,141 885,141 Contract modification (12,317) — (43,496) (55,813) Transfer to property, plant and equipment — (1,663,686) — (1,663,686) Transfer to investment properties (Note 8) — — (45,885) (45,885) Disposals — — (15,792) (15,792) Depreciation (54,792) (321,464) (391,297) (767,553) Impairment loss — (15,790) — (15,790) As of December 31, 2020 235,169 1,764,196 12,288,473 14,287,838 Buildings Machinery Land use rights Total As of January 1, 2019 396,499 6,128,291 11,452,061 17,976,851 Additions 21,203 11,606 1,215,049 1,247,858 Transfer to investment properties (Note 8) — — (239,765) (239,765) Transfer to property, plant and equipment (Note 7) — (1,674,260) — (1,674,260) Government grants — (107,441) — (107,441) Contract modification (45,507) — (137,358) (182,865) Disposals — — (52,668) (52,668) Depreciation (84,940) (601,891) (388,994) (1,075,825) Impairment losses — — (1,448) (1,448) As of December 31, 2019 287,255 3,756,305 11,846,877 15,890,437 As of December 31, 2020, the Group was in the process of applying for the certificates of land use rights with a carrying amount of RMB1,109 million (December 31, 2019: RMB74 million). There has been no litigations, claims or assessments against the Group for compensation with respect to the use of land parcels to date. As of December 31, 2020, the carrying value of these land parcels only represented approximately 0.57% of the total asset value of the Group (December 31, 2019: 0.04%). Management considers that it is probable that the Group can obtain the relevant ownership certificates from the appropriate authorities. The directors of the Company are of the opinion that the Group has the right to use the above land, and that there is no material adverse impact on the overall financial position of the Group. As of December 31, 2020, the Group has pledged land use rights at a net carrying value amounting to RMB1,232 million (December 31, 2019: RMB373 million) for bank and other borrowings as set out in Note 24 to the financial statements. (b) Lease liabilities The carrying amount of lease liabilities (included under interest-bearing bank and other borrowings) and the movements during the year are as follows: Year ended December 31, 2020 Carrying amount at January 1 8,369,262 New leases 54,109 Lease modification (55,814) Accretion of interest recognized during the year 466,796 Payments (1,748,202) Carrying amount at December 31 7,086,151 Analyzed into: Current portion 828,272 Non-current portion 6,257,879 (c) The amounts recognized in profit or loss in relation to leases are as follows: December 31, 2020 Interest on lease liabilities 466,796 Depreciation charge of right-of-use assets 767,553 Expense relating to short-term leases 214,204 Expense relating to leases of low-value assets 39,130 Total amount recognized in profit or loss 1,487,683 (d) The total cash outflow for leases is disclosed in Notes 35(c), respectively, to the financial statements. The Group as a lessor Rental income recognized by the Group during the year was RMB330 million (2019: RMB318 million, 2018: RMB240 million), details of which are included in Note 5 to the financial statements. In the opinions of the directors, the undiscounted lease payments receivable by the Group in future periods under non-cancellable operating leases are not material. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
OTHER NON-CURRENT LIABILITIES | |
OTHER NON-CURRENT LIABILITIES | 21 OTHER NON-CURRENT LIABILITIES December 31, 2020 December 31, 2019 (Restated) Financial liabilities –Long-term payables for mining rights 1,014,169 1,108,075 –Other financial liabilities 22,748 45,412 1,036,917 1,153,487 Obligations in relation to early retirement schemes (Note (i)) 217,864 427,783 Deferred government grants 182,221 245,916 Deferred gain relating to sales and leaseback agreements 58,844 125,707 Contract liabilities (Note 5) 182,859 125,758 Provision for rehabilitation 316,812 131,248 Others 152,041 10,721 1,110,641 1,067,133 2,147,558 2,220,620 Note: (i) Obligations in relation to early retirement schemes From 2014, certain subsidiaries and branches implemented early retirement benefit schemes which allow qualified employees to early retire on a voluntary basis. The Group undertakes the obligations to pay the early retired employees’ living expenses for no more than five years in the future on a monthly basis according to the early retirement benefit schemes, together with social insurance and housing fund pursuant to the regulation of the local Social Security Office. Living expenses, social insurance and the housing fund are together referred to as “the Payments”. The payments are forecasted to increase by 3% per annum with reference to the inflation rate and adjusted based on the average death rate in China. The payments are discounted by the treasury bond rate of December 31, 2020. As of December 31, 2020, the current portion of the payments within one year was reclassified to “Other payables and accrued liabilities”. As of December 31, 2020, obligations in relation to retirement benefits under the Group’s early retirement schemes are as follows: December 31, 2020 December 31, 2019 (Restated) As of January 1 843,253 1,295,453 Provision made during the year (Note 30) 53,339 210,428 Interest costs 11,582 18,260 Payment during the year (410,840) (680,888) As of December 31 497,334 843,253 Non-current 217,864 427,783 Current (Note 22) 279,470 415,470 497,334 843,253 |
OTHER PAYABLES AND ACCRUED LIAB
OTHER PAYABLES AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
OTHER PAYABLES AND ACCRUED LIABILITIES | |
OTHER PAYABLES AND ACCRUED LIABILITIES | 22 OTHER PAYABLES AND ACCRUED LIABILITIES December 31, 2020 December 31, 2019 (Restated) Financial liabilities –Payable for capital expenditures 4,677,705 6,832,365 –Interest payable 533,382 494,341 –Payables withheld as guarantees and deposits 1,748,356 1,346,361 –Dividends payable by subsidiaries to non-controlling shareholders 289,791 518,360 –Consideration payable for investment projects 23,740 141,740 –Current portion of payables for mining rights 460,101 372,824 –Others 1,254,375 1,085,516 8,987,450 10,791,507 Output value-added tax on pending 271,963 210,283 Taxes other than income taxes payable* 797,251 696,407 Accrued payroll and bonus 71,486 21,902 Staff welfare payables 323,180 258,654 Current portion of obligations in relation to early retirement schemes (Note 21) 279,470 415,470 Contribution payable for pension insurance 22,935 20,386 Others 273 999 1,766,558 1,624,101 10,754,008 12,415,608 * Taxes other than income taxes payable mainly comprise accruals for value-added tax, resource tax, city construction tax and education surcharge. As of December 31, 2020, except for other payables and accrued liabilities of the Group amounting to RMB92 million and RMB0.16 million which were denominated in USD and HKD, respectively (December 31, 2019: RMB825 million and RMB0.25 million which were denominated in USD and HKD, respectively), all other payables and accrued liabilities were denominated in RMB. |
TRADE AND NOTES PAYABLES
TRADE AND NOTES PAYABLES | 12 Months Ended |
Dec. 31, 2020 | |
TRADE AND NOTES PAYABLES | |
TRADE AND NOTES PAYABLES | 23 TRADE AND NOTES PAYABLES December 31, 2020 December 31, 2019 (Restated) Trade payables 9,972,937 7,882,265 Notes payable 5,467,922 4,726,541 15,440,859 12,608,806 As of December 31, 2020, except for trade and notes payables of the Group amounting to RMB35 million which were denominated in USD (December 31, 2019: RMB52 million denominated in USD), all trade and notes payables were denominated in RMB (December 31, 2019: all denominated in RMB). The ageing analysis of trade and notes payables is as follows: December 31, 2020 December 31, 2019 (Restated) Within 1 year 14,923,453 12,170,016 Between 1 and 2 years 210,587 229,221 Between 2 and 3 years 119,587 30,718 Over 3 years 187,232 178,851 15,440,859 12,608,806 The trade and notes payables are non-interest-bearing and are normally settled within one year. |
PLEDGE OF ASSETS
PLEDGE OF ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
PLEDGE OF ASSETS | |
PLEDGE OF ASSETS | 24 PLEDGE OF ASSETS The Group has pledged various assets as collateral against certain secured borrowings as set out in Note 19. As of December 31, 2020, a summary of these pledged assets was as follows: December 31, 2020 December 31, 2019 Property, plant and equipment (Note 7) 5,191,185 4,946,338 Right-of-use assets (Note 20) 1,232,491 373,048 Intangible assets (Note 6) 960 757,269 Notes receivable (Note 14) 1,499,260 667,190 Investments in associates (Note 9) 395,610 538,787 8,319,506 7,282,632 As of December 31, 2020, in addition to the loans and borrowings which were secured by the above assets, the current portion of long-term loans and borrowings amounting to RMB912 million (December 31, 2019: RMB1,209 million), and the non-current portion of long-term loans and borrowings amounting to RMB5,976 million (December 31, 2019: RMB10,265 million) were secured by the contractual right to charge users for electricity generated in the future. |
EXPENSE BY NATURE
EXPENSE BY NATURE | 12 Months Ended |
Dec. 31, 2020 | |
EXPENSE BY NATURE | |
EXPENSE BY NATURE | 25 EXPENSE BY NATURE For the year ended December 31 (Restated) (Restated) Purchase of inventories in relation to trading activities 85,443,397 104,928,962 102,515,791 Raw materials and consumables used, and changes in work-in-progress and finished goods 43,203,349 35,573,467 32,987,302 Power and utilities 17,651,304 16,755,424 16,766,950 Depreciation of right-of-use assets (Note 20) — 1,075,825 767,553 Depreciation and amortization (other than depreciation of right-of-use assets) expenses 8,062,117 7,714,418 7,910,802 Employee benefit expenses (Note 30) 7,484,385 7,773,170 7,872,005 Repairs and maintenance 1,760,016 1,867,160 1,595,880 Transportation expenses and logistic cost 4,688,761 3,420,360 4,079,157 Inventory impairment loss 2,247,588 1,163,272 1,321,387 Taxes other than income tax expense (Note (i)) 937,892 1,431,587 1,600,996 Packaging expenses 261,626 277,785 294,359 Auditors’ remuneration -The Company’s auditor -Audit services 25,329 25,444 18,170 -Non-audit services 1,370 2,388 700 -Other auditors 4,153 5,505 12,436 Others 2,445,657 2,641,954 1,875,928 174,216,944 184,656,721 179,619,416 Note: (i) Taxes other than income tax expense mainly comprise surcharges, land use tax, property tax and stamp duty. |
NET IMPAIRMENT LOSSES ON FINANC
NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS | |
NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS | 26 NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS For the year ended December 31 (Restated) (Restated) Impairment losses on trade and notes receivables (Note 14) 44,078 154,409 338,972 Impairment losses on other current assets (Note 15) 63,878 16,607 639,862 107,956 171,016 978,834 |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2020 | |
OTHER INCOME | |
OTHER INCOME | 27 OTHER INCOME For the year ended December 31, 2020, government grants amounting to RMB140 million (2019 (Restated): RMB85 million, 2018: RMB135 million) were recognized as income for the year to facilitate the Group’s development. There are no unfulfilled conditions or contingencies attached to the grants. |
OTHER GAINS, NET
OTHER GAINS, NET | 12 Months Ended |
Dec. 31, 2020 | |
OTHER GAINS, NET | |
OTHER GAINS, NET | 28 OTHER GAINS, NET For the year ended December 31 (Restated) (Restated) Gain on disposal of subsidiaries (Note 40) 3,517 261,187 11,305 Realized and unrealized gains on futures, forward and option contracts, net (Note (1)) 141,459 50,820 512,984 Gain on disposal of property, plant and equipment and intangible assets, net (Note (2)) 272,098 259,684 448,439 Gain on acquisition of associates — 557,965 — Gain on previously held equity interests remeasured at acquisition-date fair value 748,086 — — Gain on disposal of investment in a joint venture (1,904) 159,514 — Others (238,156) (41,661) (68,856) 925,100 1,247,509 903,872 Notes: (1) The Group does not apply hedge accounting for these futures, forward and option contracts. (2) During the year, the transactions contributed to the gain on disposal of aluminum capacity quota and property, plant and equipment mainly include the following: (a) The aluminum capacity quota of Shandong Huayu has been disposed of, and the Group recognized the disposal gain of RMB539 million from the difference between the transfer price and carrying amount of the assets (Note 19). (b) The fixed assets related to the aluminum production line of Fushun Aluminum Co., Ltd. have been disposed of, and the Group recognized the disposal loss of RMB66 million from the difference between the transfer price and carrying amount of the assets. |
FINANCE INCOME_FINANCE COSTS
FINANCE INCOME/FINANCE COSTS | 12 Months Ended |
Dec. 31, 2020 | |
FINANCE INCOME/FINANCE COSTS | |
FINANCE INCOME/FINANCE COSTS | 29 FINANCE INCOME/FINANCE COSTS An analysis of finance income/finance costs is as follows: For the year ended December 31 (Restated) (Restated) Finance income-interest income (492,322) (261,193) (226,921) Interest expense 5,202,835 4,665,537 3,986,264 Less: Interest expense capitalized in property, plant and equipment (Note 7) (517,589) (289,499) (123,571) Interest expense, net of capitalized interest 4,685,246 4,376,038 3,862,693 Interest on lease liability and amortization of unrecognized finance expenses 205,335 547,820 481,512 Exchange losses/(gains), net (7,889) (2,317) 76,323 Finance costs 4,882,692 4,921,541 4,420,528 Finance costs, net 4,390,370 4,660,348 4,193,607 Capitalization rate during the year (Note 7) 4.54% to 7.00% 4.00% to 6.96% 4.00% to 6.68% |
EMPLOYEE BENEFIT EXPENSE
EMPLOYEE BENEFIT EXPENSE | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFIT EXPENSE | |
EMPLOYEE BENEFIT EXPENSE | 30 EMPLOYEE BENEFIT EXPENSE An analysis of employee benefit expenses is as follows: For the year ended December 31 (Restated) (Restated) Salaries and bonuses 4,671,230 4,939,758 5,322,387 Housing fund 417,721 488,574 532,842 Staff welfare and other expenses* 1,910,184 2,035,931 1,955,447 Employment expense in relation to early retirement schemes (Note 21) 447,660 210,428 53,339 Employment expenses in relation to termination benefits 37,590 98,479 7,990 7,484,385 7,773,170 7,872,005 *Staff welfare and other expenses include staff welfare, staff union expenses, staff education expenses and unemployment insurance expenses etc. Employee benefit expenses include remuneration payables to directors, supervisors and senior management as set out in Note 31. |
DIRECTORS' AND SUPERVISORS' REM
DIRECTORS' AND SUPERVISORS' REMUNERATION | 12 Months Ended |
Dec. 31, 2020 | |
DIRECTORS' AND SUPERVISORS' REMUNERATION | |
DIRECTORS' AND SUPERVISORS' REMUNERATION | 31 DIRECTORS’ AND SUPERVISORS’ REMUNERATION (a) Directors’ and supervisors’ remuneration Directors’ and supervisors’ remuneration for the year, disclosed pursuant to the Listing Rules, section 383(1)(a), (b), (c) and (f) of the Hong Kong Companies Ordinance and Part 2 of the Companies Regulation (Disclosure of Information about Benefits of Directors), is as follows: December 31, 2018 December 31, 2019 December 31, 2020 Fees 756 780 683 Basic salaries, housing fund, other allowances and benefits in kind 1,849 4,665 4,183 Pension costs 234 513 20 2,839 5,958 4,886 The remuneration of each director and supervisor of the Company for the year ended December 31, 2020 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Lu Dongliang (Note (i)) — — — — — He Zhihui (Note (ii)) — 866 — 37 903 Jiang Yinggang (Note (iii)) — 562 — 31 593 Zhu Runzhou — 894 — 44 938 — 2,322 — 112 2,434 Non-executive Directors: Ao Hong — — — — — Wang Jun (Note (iv)) 50 — — — 50 Chen Lijie 211 — — — 211 Lie-A-Cheong Tai-Chong, David 211 — — — 211 Hu Shihai 211 — — — 211 683 — — — 683 Supervisors: Ye Guohua — — — — — Ou Xiaowu (Note (v)) — 134 — 7 141 Shan shulan — — — — — Guan Xiaoguang — 770 — 44 814 Yue Xuguang — 770 — 44 814 Total — 1,674 — 95 1,769 The remuneration of each director and supervisor of the Company for the year ended December 31, 2019 is set out below: Discretionary Pension Names of directors and supervisors Fees Salaries bonuses costs total Executive Directors: Lu Dongliang (Note (i)) — — — — — He Zhihui (Note (ii)) — 885 — 73 958 Jiang Yinggang (Note (iii)) — 889 — 88 977 Zhu Runzhou — 833 — 88 921 — 2,607 — 249 2,856 Non-executive Directors: Ao Hong — — — — — Wang Jun (Note (iv)) 150 — — — 150 Chen Lijie 210 — — — 210 Lie-A-Cheong Tai-Chong, David 210 — — — 210 Hu Shihai 210 — — — 210 780 — — — 780 Supervisors: Ye Guohua — — — — — Ou Xiaowu (Note (v)) — — — — — Shan shulan — — — — — Guan Xiaoguang — 710 — 88 798 Yue Xuguang — 770 — 88 858 Wu Zuoming — 578 — 88 666 Total — 2,058 — 264 2,322 The remuneration of each director and supervisor of the Company for the year ended December 31, 2018 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Yu Hehui — — — — — Lu Dongliang (Note (i)) — — — — — Jiang Yinggang (Note (iii)) — 762 — 90 852 Zhu Runzhou — 438 — 54 492 — 1,200 — 144 1,344 Non-executive Directors: Ao Hong — — — — — Liu Caiming — — — — — Wang Jun (Note (iv)) 150 — — — 150 Chen Lijie 202 — — — 202 Lie-A-Cheong Tai-Chong, David 202 — — — 202 Hu Shihai 202 — — — 202 756 — — — 756 Supervisors: Liu Xiangmin — — — — — Wang Jun — — — — — Wu Zuoming — 649 — 90 739 Total — 649 — 90 739 Notes: (i) On May 14, 2020, Mr. Lu Dongliang has resigned as chairman and executive director of the Company. (ii) On October 21, 2020, Mr. He Zhihui has resigned as an executive director and president of the Company. (iii) On August 31, 2020, Mr. Jiang Yinggang has passed away due to illness. (iv) Since May 2020, Mr. Wang Jun has issued a voluntary waiver of director's remuneration to the Company who has voluntarily waived his remuneration as a result of his service as a director of the Board of the Company. (v) On October 22, 2020, Mr. Ou Xiaowu resigned as a supervisor of the Company and was reassigned to the Company as the deputy secretary of the party committee and the secretary of the disciplinary committee. The remuneration of the directors and supervisors of the Company fell within the following band: Number of individuals December 31, 2018 December 31, 2019 December 31, 2020 Nil to RMB1,000,000 12 14 14 During the year, no options were granted to the directors or the supervisors of the Company (2019: Nil, 2018: Nil). During the year, no emoluments were paid to the directors or the supervisors of the Company (among which included the five highest paid employees) as an inducement to join or upon joining the Company or as compensation for loss of office (2019: Nil, 2018: Nil). Director Wang Jun waived his director's remuneration with effect from May 2020. (b) Five highest paid individuals During the year ended December 31, 2020, the five highest paid employees of the Group include three directors (2019: three directors, 2018: one director) whose remuneration is reflected in the analysis presented above. The remuneration payable to the remaining two individuals during 2020 (2019: two, 2018: three) is as follows: December 31, 2018 December 31, 2019 December 31, 2020 Basic salaries, housing fund, other allowances and benefits in kind 1,305 1,670 1,620 Discretionary bonuses — — — Pension costs 165 137 8 1,470 1,807 1,628 The number of the remaining three highest paid individuals during 2020 (2019: two, 2018: two) whose remuneration fell within the following band is as follows: Number of employees December 31, December 31, December 31, Nil to RMB1,000,000 2 2 3 |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAX EXPENSE | |
INCOME TAX EXPENSE | 32 INCOME TAX EXPENSE December 31, 2018 December 31, 2019 December 31, 2020 (Restated) (Restated) Current income tax expense 759,111 723,062 813,112 Deferred tax benefit 67,255 (94,686) (230,924) 826,366 628,376 582,188 In general, the Group’s PRC entities are subject to PRC corporate income tax at the standard rate of 25% (2019: 25%, 2018: 25%) on their respective estimated assessable profits for the year. Certain branches and subsidiaries of the Company located in the western regions of the PRC are granted tax concessions including a preferential tax rate of 15% (2019: 15%, 2018: 15%). A reconciliation of the tax expense applicable to profit before tax at the statutory rates for the countries in which the Company and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rates, and a reconciliation of the applicable rates to the effective tax rates, are as follows: December 31, 2018 December 31, 2019 December 31, 2020 (Restated) (Restated) Profit before income tax 2,272,555 2,118,961 2,155,217 Tax expense calculated at the statutory tax rate of 25% (2019: 25%, 2018: 25%) 568,139 529,740 538,804 Tax effects of: Preferential income tax rates applicable to certain branches and subsidiaries (268,665) (464,912) (357,016) Impact of change in income tax rate 23,425 4,594 (52,177) Tax losses with no deferred tax assets recognized 434,103 588,267 477,876 Deductible temporary differences with no deferred tax assets recognized 384,072 41,695 146,276 Utilization of previously unrecognized tax losses and deductible temporary differences (52,962) (18,105) (73,779) Tax incentive in relation to deduction of certain expenses (62,172) (50,921) (42,958) Expenses not deductible for tax purposes 54,959 56,448 52,261 Non-taxable income (252,500) (173,686) — Write-off of unrecoverable deferred tax assets previously recognized 183,195 187,432 41,757 Profits and losses attributable to joint ventures and associates 40,029 (79,720) (70,577) Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized (233,940) (3,868) (61,987) Adjustments in respect of current income tax of previous periods 8,683 11,412 (16,292) Income tax expense 826,366 628,376 582,188 Effective tax rate 36 % 30 % 27 % |
EARNINGS PER SHARE ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | |
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | 33 EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY For the year ended December 31 (Restated) (Restated) Profit attributable to owners of the Company (in thousands of RMB) 709,397 853,102 741,004 Other equity instruments’ distribution reserved (in thousands of RMB) (129,282) (219,249) (261,168) Profit attributable to ordinary shares holders of the Company 580,115 633,853 479,836 Number of ordinary shares in issue (thousands) as of January 1 14,903,798 14,903,798 17,022,673 Effect of equity exchange arrangement 1,938,916 — — Issuance of share capital (thousands) (Note 17) — 2,118,875 — Weighted average number of ordinary shares in issuance 16,842,714 17,022,673 17,022,673 Basic earnings per share (RMB) 0.034 0.037 0.028 The Group had no potentially dilutive ordinary shares in issuance during the years ended December 31, 2018, 2019 and 2020, thus the diluted earnings per share were the same as basic earnings per share. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2020 | |
DIVIDENDS | |
DIVIDENDS | 34 DIVIDENDS According to the articles of association of the Company, the Company considers the maximum limit of profit appropriation to its shareholders is the lowest of: (i) the sum of the net profit less statutory surplus reserve and the opening retained earnings for the current period in accordance with IFRSs; (ii) the sum of the net profit less statutory surplus reserve and the opening retained earnings for the current period in accordance with the PRC Accounting Standards for Business Enterprises; and (iii) the amount limited by the Company Law of the PRC. According to the resolution of the Board of Directors dated March 23, 2021, the directors did not propose any final dividend for the year ended December 31, 2020. |
NOTES TO THE CONSOLIDATED STATE
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2020 | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | 35 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (a) Reconciliation of profit before taxation to cash generated from operations For the year ended December 31 Notes (Restated) (Restated) Cash flows generated from operating activities Profit before income tax 2,272,555 2,118,961 2,155,217 Adjustments for: Share of profits of joint ventures 9 (a) 199,452 (270,115) (180,502) Share of profits of associates 9 (b) (39,335) (48,767) (145,737) Depreciation of property, plant and equipment 7 7,505,687 7,100,776 7,152,170 Depreciation of investment properties 8 22,229 26,559 24,405 Depreciation of right-of-use assets 20 — 1,075,825 767,553 Amortization of land use rights 108,152 — — Amortization of intangible assets 6 295,901 338,938 459,482 Amortization of prepaid expenses included in other non-current assets 130,148 248,145 274,745 Gain on write-off and disposal of property, plant and equipment and intangible assets, net (101,098) (243,622) (319,796) Impairment loss on property, plant and equipment 46,484 259,354 416,841 Impairment loss of investment properties — 87 — Impairment loss of intangible assets — — 416 Impairment loss of right-of-use assets 20 — 1,448 15,790 Impairment loss of inventory 2,247,588 1,163,272 1,321,387 Impairment loss of trade and notes receivables 44,078 154,409 338,972 Impairment loss of other currents assets 63,878 16,607 639,862 Realized and unrealized gains on futures, option and forward contracts 28 (141,459) (50,820) (512,984) Gain on previously held equity interest remeasured at acquisition-date fair value (748,086) — — Gain on disposal of subsidiaries 28 (3,517) (261,187) (11,305) Gain on disposal of investment in a joint venture and associates 28 1,904 (159,514) — Gain on acquisition of associates 28 - (557,965) — Dividends from other financial assets measured at fair value 28 (109,914) (97,775) (82,794) Government subsidies (158,109) (112,141) (29,933) Finance cost 29 4,882,692 4,921,541 4,420,528 Change in special reserve 6,605 (23,085) 12,524 Others 75,381 (11,558) 21,342 Changes in working capital: Decrease/(increase) in inventories (1,051,617) (234,203) (1,668,260) Increase in trade and notes receivables (2,559,274) (1,169,339) (3,867,944) Decrease/ (increase) in other current assets 852,918 (377,246) (414,247) Decrease in restricted cash 530,284 859,507 249,744 (Increase)/decrease in other non-current assets 425,739 547,856 (70,637) Increase/(decrease) in trade and notes payables 18,669 (1,405,565) 3,009,490 Increase/(decrease) in other payables and accrued liabilities (951,554) (560,910) 1,879,398 (Decrease)/increase in other non-current liabilities 105,386 (206,354) (177,045) Cash generated from operations 13,971,767 13,043,119 15,678,682 PRC corporate income taxes paid (950,091) (551,446) (797,336) Net cash generated from operating activities 13,021,676 12,491,673 14,881,346 Major non-cash transactions of investing activities and financing activities Investment in a joint venture used gallium business — 352,848 — Acquisition of minority interests for nil consideration — 149,322 — Endorsement of notes receivables accepted from sale of goods or services for purchase of property, plant and equipment 2,384,046 1,504,162 2,276,782 Acquisition of other financial assets measured at fair value through other comprehensive income by exchanging equity in a subsidiary — 350,911 — Equity exchange arrangement 10,735,214 — — Finance lease 113,601 — — Acquisition of business 70,087 — 42,230 13,302,948 2,357,243 2,319,012 (b) Reconciliation of liabilities arising from financing activities The table below details changes in the Group’s liabilities from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are liabilities for which cash flows was, or future cash flows will be, classified in the Group’s consolidated statements of cash flows as cash flows from financing activities Financial liabilities included in other current payables and Interest bearing loans accrued expenses and borrowings Total As of January 1, 2020 (Restated) 10,791,507 101,530,167 112,321,674 Net cash generated from operating activities 1,988 — 1,988 Net cash flows generated from/(used in) investing activities (2,154,660) 546,995 (1,607,665) Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — 25,870,716 25,870,716 Distribution of senior perpetual securities — (421,416) (421,416) Repayments of medium-term notes and short-term bonds — (30,638,813) (30,638,813) Repayments of gold leasing arrangement — (6,921,860) (6,921,860) Drawdown of short-term and long-term bank borrowings and other loans — 46,021,404 46,021,404 Repayments of short-term and long-term bank borrowings and other loans — (43,111,460) (43,111,460) Principal portion of lease payment — (1,748,202) (1,748,202) Dividends paid by subsidiaries to non-controlling shareholders 2,474 — 2,474 Amortization of unrecognized finance expenses and interest expense — 487,249 487,249 Interest paid 258,864 21,650 280,514 Reclassification 87,277 899,955 987,232 Net foreign exchange differences — (311,005) (311,005) Net cash (used in)/generated from financing activities 348,615 (9,851,782) (9,503,167) As of December 31, 2020 8,987,450 92,225,380 101,212,830 Financial liabilities included in other current payables and Interest bearing loans accrued expenses and borrowings Total As of January 1, 2019 (Restated) 9,286,462 101,772,876 111,059,338 Net cash generated from operating activities 497,927 — 497,927 Net cash generated from investing activities 622,995 7,157,695 7,780,690 Proceeds from gold leasing arrangement — 6,921,860 6,921,860 Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — 37,964,489 37,964,489 Repayments of senior perpetual securities — (352,648) (352,648) Repayments of medium-term notes and short-term bonds — (22,400,000) (22,400,000) Repayments of gold leasing arrangement — (1,607,905) (1,607,905) Drawdown of short-term and long-term bank borrowings and other loans — 40,669,197 40,669,197 Repayments of short-term and long-term bank borrowings and other loans — (66,105,388) (66,105,388) Principal portion of lease payments — (3,032,106) (3,032,106) Dividends paid by subsidiaries to non-controlling shareholders (23,715) — (23,715) Amortization of unrecognized finance expenses and interest expense — 487,249 487,249 Interest paid 235,310 22,631 257,941 Reclassification 162,120 — 162,120 Net foreign exchange differences 10,408 32,217 42,625 Net cash (used in)/generated from financing activities 384,123 (7,400,404) (7,016,281) As of December 31, 2019 (Restated) 10,791,507 101,530,167 112,321,674 (c) Total cash outflow for leases The total cash outflow for leases included in the statement of cash flows is as follows: For the year ended December 31 , 2020 Within operating activities 253,334 Within financing activities 1,748,202 2,001,536 |
SIGNIFICANT RELATED PARTY TRANS
SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES | |
SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES | 36 SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES The Company is controlled by Chinalco, its parent company and a state-owned enterprise established in Mainland China. Chinalco itself is controlled by the PRC government, which also owns a significant portion of the productive assets in Mainland China. In accordance with IAS 24 Related Party Disclosures, government-related entities and their subsidiaries, directly or indirectly controlled, jointly controlled or significantly influenced by the PRC government are defined as related parties of the Group. On that basis, related parties include Chinalco and its subsidiaries (other than the Group), other government-related entities and their subsidiaries (“other state-owned enterprises”), other entities and corporations over which the Company exercise significant influence and key management personnel of the Company and Chinalco as well as their close family members. For the purposes of the related party transaction disclosures, the directors of the Company consider that meaningful information in respect of related party transactions has been adequately disclosed. In addition to the related party information and transactions disclosed elsewhere in the consolidated financial statements, the following is a summary of significant related party transactions in the ordinary course of business between the Group and its related parties during the year. (a) Significant related party transactions For the year ended December 31 Notes Sales of goods and services rendered: Sales of materials and finished goods to: (i) Chinalco and its subsidiaries (ix) 11,320,015 13,612,817 13,986,223 Associates of Chinalco 897,642 514,414 520,485 Joint ventures 4,462,670 5,676,548 6,694,824 Associates 2,626,780 3,812,565 9,232,432 Non-controlling shareholder of a subsidiary and its subsidiaries — — 42,298 19,307,107 23,616,344 30,476,262 Sales of utility to: (ii) Chinalco and its subsidiaries (ix) 620,552 687,290 1,104,542 Associates of Chinalco 15,719 4,062 3,268 Joint ventures 186,672 263,436 470,984 Associates 24,309 35,650 18,568 847,252 990,438 1,597,362 Provision of engineering, construction and supervisory services to: Chinalco and its subsidiaries 5,981 — — Joint ventures — — — Associates 1,725 — — 7,706 — — Rental revenue of land use rights and buildings from: (vi) Chinalco and its subsidiaries (ix) 31,551 52,571 39,284 Associates of Chinalco — 65 237 Joint ventures 1,545 1,967 1,426 Associates 1,511 775 365 34,607 55,378 41,312 Purchases of goods and services: Purchases of engineering, construction and supervisory services from: (iii) Chinalco and its subsidiaries (ix) 2,088,338 2,949,866 1,755,092 Associates of Chinalco — — 265 Joint ventures 2,100 69,332 — Associates 405,993 218,616 12,233 2,496,431 3,237,814 1,767,590 Provision of social services and logistics services by: (v) Chinalco and its subsidiaries (ix) 312,062 309,180 475,532 312,062 309,180 475,532 Purchases of primary and auxiliary materials, equipment and finished goods from: Chinalco and its subsidiaries (iv) 3,513,420 8,161,223 6,266,563 Associates of Chinalco (ix) 18,917 18 2,586 Joint ventures 8,182,251 2,647,234 5,501,158 Associates 2,108,072 1,893,449 10,576,907 Non-controlling shareholder of a subsidiary and its subsidiaries — — 30,101 13,822,660 12,701,924 22,377,315 Purchases of utility services from: (ii) Chinalco and its subsidiaries (ix) 992,827 763,812 650,921 Associates of Chinalco 96,510 100,835 85,469 Joint ventures 26,269 280,523 443,290 Associates 77,432 8,326 — 1,193,038 1,153,496 1,179,680 Purchases of other services by: (vii) A joint venture 226,280 272,220 373,655 272,220 373,655 Rental expenses /lease liabilities payments for buildings and land use rights charged by: (vi) Chinalco and its subsidiaries (ix) 501,866 499,191 661,888 501,866 499,191 661,888 For the year ended December 31 Notes Other significant related party transactions: Borrowing from subsidiaries of Chinalco (viii), (ix) 6,525,000 3,890,000 1,925,000 Interest expense on borrowings, discounted notes and factoring arrangement from subsidiaries of Chinalco 143,415 141,991 87,985 Investment in subsidiaries of Chinalco — 2,137,608 — Disposal of aluminum capacity quota to a subsidiary of Chinalco — 800,000 — Disposal of assets under a sale and leaseback contract to a subsidiary of Chinalco (x) 224,000 500,000 — Finance lease under a sale and leaseback contract from a subsidiary of Chinalco (x), (ix) 224,000 558,924 — Trade receivable factoring arrangement from a subsidiary of Chinalco (ix) 470,101 136,656 — Discounted notes receivable to a subsidiary of Chinalco (viii) 756,000 679,517 36,750 Provision of financial guarantees to a joint venture 12,450 12,450 — All transactions with related parties were conducted at prices and on terms mutually agreed by the parties involved, which are determined as follows: (i) Sales of materials and finished goods comprised sales of alumina, primary aluminum, copper and scrap materials. Transactions entered into are covered by general agreements on a mutual provision of production supplies and ancillary services. The pricing policy is summarised below: 1. 2. 3. 4. (ii) Utility services, including electricity, gas, heat and water, are provided at the state-prescribed price. (iii) Engineering, project construction and supervisory services were provided for construction projects. The state-guidance price or prevailing market price (including the tender price where by way of tender) is adopted for pricing purposes. (iv) The pricing policy for purchases of primary and auxiliary materials (including bauxite, limestone, carbon, cement and coal) is the same as that set out in (i) above. (v) Social services and logistics services provided by Chinalco Group cover public security, fire services, education and training, school and hospital services, cultural and physical education, newspaper and magazines, broadcasting and printing as well as property management, environmental and hygiene, greenery, nurseries and kindergartens, sanatoriums, canteens and offices, public transport and retirement management and other services. Provisions of these services are covered by the Comprehensive Social and Logistics Services Agreement. The pricing policy is the same as that set out in (i) above. (vi) Pursuant to the Land Use Right Lease Agreements entered into between the Group and Chinalco Group, operating leases for industrial or commercial land are charged at the market rent rate. The Group also entered into a building rental agreement with Chinalco Group and paid rents based on the market rate for its lease of buildings owned by Chinalco. (vii) Other services are environmental protection operation services. The prevailing market price is adopted for pricing purposes. (viii) Chinalco Finance Company Limited (“Chinalco Finance”) (中鋁財務有限責任公司), a wholly-owned subsidiary of Chinalco and a non-bank financial institution established in the PRC, provides deposit services, credit services and miscellaneous financial services to the Group. The terms for the provision of financial services to the Group are no less favourable than those of the same type of financial services provided by Chinalco Finance to Chinalco and other members of its group or those of the same type of financial services that may be provided to the Group by other financial institutions. (ix) These related party transactions also constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Listing Rules. (x) As disclosed in Note 20, the Group has entered into several sale and leaseback contracts with Chalco Financial Leasing Co., Ltd.. (xi) As disclosed in Note 39, the Group acquired Henan Zhongzhou Logistics and Chongqing Xinan Transportation from Chinalco’s subsidiaries. (xii) As disclosed in Note 28, in May 2019, the Group entered into transactions with its fellow subsidiaries including the disposals of subsidiaries and disposal of aluminum capacity quota. These transactions constituted related party transactions. * (b) Balances with related parties Other than those disclosed elsewhere in the consolidated financial statements, the outstanding balances with related parties at the year end are as follows: December 31, 2019 December 31, 2020 Cash and cash equivalents deposited with A subsidiary of Chinalco * 3,285,093 3,561,997 Trade and notes receivables Chinalco and its subsidiaries 1,054,168 760,138 Associates of Chinalco 6,034 56,107 Joint ventures 788,183 743,369 Associates 25 107 1,848,410 1,559,721 Provision for impairment of receivables (17,815) (74,668) 1,830,595 1,485,053 * On August 26, 2011, the Company entered into an agreement with Chinalco Finance, pursuant to which, Chinalco Finance agreed to provide deposit services, credit services and other financial services to the Group. On August 24, 2012, April 28, 2015, October 26, 2017 and April 27, 2020, the Company renewed the financial service agreement with Chinalco Finance with a validation term of three years ending on October 25, 2023. December 31, 2019 December 31, 2020 Other current assets (Restated) Chinalco and its subsidiaries 421,805 268,321 Joint ventures 1,503,505 1,416,094 Associates 47,743 433,453 Non-controlling shareholder of a subsidiary and its subsidiaries — 1,200 Provision for impairment of other current assets (30,509) (422,089) 1,942,544 1,696,979 Other non-current assets Associates 111,845 111,845 Interest-bearing loans and borrowings: Subsidiaries of Chinalco (including lease liabilities) 9,857,187 8,887,422 Trade and notes payables Chinalco and its subsidiaries 334,840 437,732 Associates of Chinalco 917 1,511 Joint ventures 527,744 561,508 Associates 9,789 10,562 873,290 1,011,313 Other payables and accrued liabilities Chinalco and its subsidiaries 1,810,514 2,193,782 Associates of Chinalco 17,056 1,019 Associates 80,012 28,424 Joint ventures 73,823 3,940 1,981,405 2,227,165 Contract liabilities: Chinalco and its subsidiaries 29,210 17,460 Associates of Chinalco — 13,453 Associates 223 79 Joint ventures 56,010 519 Non-controlling shareholder of a subsidiary and its subsidiaries — 656 85,443 32,167 As of December 31, 2020, included in long-term loans and borrowings and short-term loans and borrowings were from other state-owned enterprises amounting to and RMB31,245 million (December 31, 2019: RMB42,553 million) and RMB18,543 million (December 31, 2019: RMB29,781 million), respectively. The terms of all balances with the exception of the entrusted loans were unsecured and were in accordance with terms as set out in the respective agreements or as mutually agreed between the parties concerned. (c) Compensation of directors, supervisors and senior management December 31, 2018 December 31, 2019 December 31, 2020 Fees 756 780 683 Basic salaries, housing fund, other allowances and benefits in kind 3,953 6,945 6,081 Pension costs 482 715 30 5,191 8,440 6,794 (d) Commitments with related parties As of December 31, 2020 and 2019, except for the other capital commitments disclosed in Note 43(b) to these financial statements, the Group had no significant commitments with related parties. |
FINANCIAL AND CAPITAL RISK MANA
FINANCIAL AND CAPITAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | 37 FINANCIAL AND CAPITAL RISK MANAGEMENT 37.1 Financial risk management The Group’s activities expose it to a variety of financial risks, including market risk (including foreign currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize the potential adverse effects on the Group’s financial performance. Risk management is carried out by the treasury management department (the “Group Treasury“) under policies approved by the Board of Directors of the Company. The Group Treasury identifies, evaluates and hedges financial risks through close co-operation with the Group’s operating units. (a) Market risk (i) Foreign currency risk The Group’s foreign currency risk arose from transaction conducted in currency other than the functional currency of the group entities. The Group’s foreign currency risk primarily arises from foreign currency deposits, trade receivables, trade payables, advances paid to suppliers, and short-term and long-term loans denominated in United States dollars (“USD”), Euro (“EUR”), Japanese yen (“JPY”), and Hong Kong dollars (“HKD”). Related exposures are disclosed in Notes 16, 14, 23, 15, and 19 to the financial statements, respectively. The Group Treasury closely monitors the international foreign currency market on the change of exchange rates and takes these into consideration when investing in foreign currency deposits and borrowing loans. As of December 31, 2020, the Group only had significant exposure to USD. As of December 31, 2020, if RMB had strengthened/weakened by 5% against USD with all other variables held constant, the profit for the year would have been approximately RMB82 million higher/lower (2019: RMB95 million lower/higher), mainly as a result of foreign exchange gains and losses arising from translation of USD denominated borrowings, other payables and medium/term notes. Profit was less sensitive to the fluctuation in the RMB/USD exchange rates in 2020 than in 2019, mainly due to the decrease in the USD denominated other payables and medium/term notes. As the assets and liabilities denominated in other foreign currencies other than USD were relatively minimal to the total assets and liabilities of the Group, the directors of the Company are of the opinion that the Group was not exposed to significant foreign currency risk arising from other assets and liabilities denominated in currency other than the functional currency of the group entities as of December 31, 2020 and 2019. (ii) Interest rate risk As of December 31, 2020, as the Group had no significant interest-bearing assets except for bank deposits (Note 16) and entrusted loans (Note 19). Most of the bank deposits are maintained in savings and time deposit accounts in the PRC. The interest rates are regulated by the People’s Bank of China and the Group Treasury closely monitors the fluctuation on such rates periodically. The interest rates of entrusted loans are fixed. As the interest rates applied to the entrusted loans were fixed, the directors of the Company are of the opinion that the Group was not exposed to any significant interest rate risk for its financial assets held as of December 31, 2020 and 2019. The interest rate risk for the Group’s financial liabilities primarily arises from interest-bearing loans. Loans borrowed at floating interest rates expose the Group to cash flow interest rate risk. The Group enters into debt obligations to support general corporate purposes including capital expenditures and working capital needs. The Group Treasury closely monitors market interest rates and maintains a balance between variable rate and fixed rate borrowings in order to reduce the exposures to the interest rate risk described above. As of December 31, 2020, if interest rates had been 100 basis points (December 31, 2019: 100 basis points) higher/lower for bank and other loans borrowed at floating interest rates with all other variables held constant, net profit for the year would have been RMB430 million lower/higher (2019: RMB451 million), respectively, mainly as a result of the higher/ lower interest expense on floating rate borrowings. The fair value interest rate risk of the Group mainly arises from medium/term notes and short/term bonds issued at fixed rates. As the fluctuation of comparable interest rates of corporate bonds with similar terms was relatively low, the directors of the Company are of the opinion that the Group was not exposed to any significant fair value interest rate risk for its fixed interest rate borrowings held as of December 31, 2020 and 2019. (iii) Commodity price risk The Group uses futures and option contracts to reduce its exposure to fluctuations in the price of primary aluminum and other products. The Group uses the futures contract for offsetting other than speculation. With reference to the hedging of primary aluminum, production company hedges the output of primary aluminum and trading company hedges the quantities of buyout and self-supporting. The Group uses mainly futures contracts and option contracts traded on the Shanghai Futures Exchange and London Metal Exchange (“LME”) to hedge against fluctuations in primary aluminum prices. As of December 31, 2020, the fair values of the outstanding futures contracts amounting to RMB17 million (December 31, 2019: RMB3 million) and RMB27 million (December 31, 2019: RMB1 million) were recognized in financial assets and financial liabilities at fair value through profit or loss, respectively. As of December 31, 2020, the Company did not hold any option contracts (December 31, 2019: the Company did not hold any option contracts). As of December 31, 2020, if the commodity futures prices had increased/ decreased by 3% (December 31, 2019: 3%) and all other variables held constant, profit for the year would have changed by the amounts shown below: December 31, 2019 December 31, 2020 Primary aluminum Decrease/increase Decrease/increase (b) Credit risk Credit risk arises from balances with banks and financial institutions, trade and notes receivables, other current and non-current receivables as well as credit exposures of customers, including outstanding receivables and committed transactions. The Group maintains substantially all of its bank balances and cash and short-term investments in several major state-owned banks in the PRC. With strong support from the PRC government to these state-owned banks, the directors of the Company are of the opinion that there is no significant credit risk on such assets being exposed to losses. The Group applies the simplified approach to most of its trade receivables to provide for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for trade receivables. The Group has made individual assessment for trade receivables from clients with top rating and those receivables with pledged assets separately and impairment provisions are made. To measure the expected credit losses of trade receivables other than those assessed individually as mentioned above, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected credit loss model also incorporates forward-looking information. For other current and non-current receivables, the Group considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as of the reporting date with the risk of default as of the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated: · internal credit rating · external credit rating · actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower’s ability to meet its obligations · actual or expected significant changes in the operating results of individual clients · significant changes in the expected performance and behaviour of the clients The Group measures expected credit loss rates on the basis of a loss rate approach by segmenting its portfolio into appropriate groupings based on shared credit risk characteristics. At the end of each year, the Group updates its historical loss information with forward-looking information. As the historical credit loss rates were comparatively stable and no significant changes were expected to the forward-looking information after the consideration of reasonable and supportable forecasts of comparatively stable customer relationship and customers’ credit ratings, the expected credit loss rates remained consistent during 2020. The table below shows the credit quality and the maximum exposure to credit risk based on the Group's credit policy, which is mainly based on past due information unless other information is available without undue cost or effort, and year-end staging classification as of December 31, 2020. The amounts presented are carrying amounts for financial assets and the exposure to credit risk for the financial guarantee contracts. Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables — — — 4,746,995 4,746,995 Financial assets in other current assets 2,212,930 563,247 1,206,950 — 3,983,127 Restricted cash 1,056,037 — — — 1,056,037 Notes receivables — — — 4,546,223 4,546,223 Cash and cash equivalents 9,631,152 — — — 9,631,152 Financial assets in other non-current assets 127,754 — — — 127,754 Total 13,027,873 563,247 1,206,950 9,293,218 24,091,288 The carrying amounts of short-term investments and these receivables included in Notes 12, 14, 15 and 16 represent the Group’s maximum exposure to credit risk in relation to its financial assets. The directors of the Company are of the opinion that the Group was not exposed to any significant concentration of credit risk as at December 31, 2020 and 2019. (c) Liquidity risk Cash flow forecast is performed in the operating entities of the Group and aggregated by the Group Treasury. The Group Treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. This forecast takes into consideration of the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory or legal requirements, for example, currency restrictions. Management also monitors rolling forecasts of the Group’s liquidity reserve on the basis of expected cash flows. The table below analyses the maturity profile of the Group’s financial liabilities as of the end of the reporting period. The amounts disclosed in the table are the contractual undiscounted cash flows. Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total As of December 31, 2020 Lease liabilities, including current portion 1,151,332 473,410 1,263,824 9,708,710 12,597,276 Long-term bank and other loans, including current portion 3,629,014 6,702,687 15,638,089 17,044,774 43,014,564 Medium-term notes and bonds, including current portion 7,109,960 3,000,000 6,900,000 2,000,000 19,009,960 Short-term bonds 2,400,000 — — — 2,400,000 Gold leasing arrangement — — — — — Short-term bank and other loans 20,738,030 — — — 20,738,030 Interest payables for loans and borrowings 2,935,356 2,105,844 4,046,106 2,039,075 11,126,381 Financial liabilities at fair value through profit or loss 26,684 — — — 26,684 Financial liabilities included in other payables and accrued liabilities, excluding accrued interest 8,454,068 — — — 8,454,068 Financial liabilities included in other non-current liabilities — 194,609 74,367 767,941 1,036,917 Trade and notes payables 15,440,859 — — — 15,440,859 61,885,303 12,476,550 27,922,386 31,560,500 133,844,739 Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total As of December 31, 2019 (Restated) Finance lease payables, including current portion 1,729,933 1,106,701 1,333,762 10,377,143 14,547,539 Long-term bank and other loans, including current portion 3,339,687 7,525,775 9,159,028 18,811,397 38,835,887 Medium-term notes and bonds, including current portion — 7,285,840 9,500,000 — 16,785,840 Short-term bonds 9,300,000 — — — 9,300,000 Gold leasing arrangement 6,921,860 — — — 6,921,860 Short-term bank and other loans 21,238,166 — — — 21,238,166 Interest payables for borrowings 4,955,925 2,289,092 4,220,111 978,041 12,443,169 Financial liabilities at fair value through profit or loss 805 — — — 805 Financial liabilities included other payables and accrued liabilities, excluding accrued interest 10,297,166 — — — 10,297,166 Financial liabilities included in other non-current liabilities (note) — 176,232 182,006 795,249 1,153,487 Trade and notes payables 12,608,806 — — — 12,608,806 70,392,348 18,383,640 24,394,907 30,961,830 144,132,725 37.2 Financial instruments (a) Financial instruments by category Note: As disclosed in Note 21, as of December 31, 2020, the carrying value of financial liabilities included in other non-current liabilities was RMB1,037 million (December 31, 2019: RMB1,153 million). The carrying amounts of each of the categories of financial instruments of the Group as of the end of the reporting period are as follows: Financial assets At December 31, 2020 Debt Equity instruments Financial instruments at at fair value assets at fair fair value through value through Financial through other other profit or loss- assets at comprehensive comprehensive held for trading amortized cost income income Total Current Trade receivables — 4,746,995 — — 4,746,995 Notes receivable — — — 4,546,223 4,546,223 Financial assets at fair value through profit or loss 17,311 — — — 17,311 Restricted cash and term deposits — 1,056,037 — — 1,056,037 Cash and cash equivalents — 9,631,152 — — 9,631,152 Financial assets included in other current assets — 3,983,127 — — 3,983,127 Subtotal 17,311 19,417,311 — 4,546,223 23,980,845 Non-current Other financial assets measured at fair value — — 1,526,703 — 1,526,703 Other non-current assets — 127,754 — — 127,754 Subtotal — 127,754 1,526,703 — 1,654,457 Total 17,311 19,545,065 1,526,703 4,546,223 25,635,302 Financial liabilities As of December 31, 2020 Financial assets at fair Financial value through profit or liabilities at loss-held for trading amortized cost Total Current Financial liabilities at fair value through profit or loss 26,684 — 26,684 Interest-bearing loans and borrowings — 34,707,283 34,707,283 Payables and accrued liabilities (Note 22) — 8,987,450 8,987,450 Trade and notes payables — 15,440,859 15,440,859 Subtotal 26,684 59,135,592 59,162,276 Non-current Financial liabilities included in other non-current liabilities (Note 21) — 1,036,917 1,036,917 Interest-bearing loans and borrowings — 57,518,097 57,518,097 Subtotal — 58,555,014 58,555,014 Total 26,684 117,690,606 117,717,290 Financial Assets As of December 31, 2019 (Restated) Equity Debt instruments instruments Financial at at fair value assets at fair fair value through value through Financial through other other profit or loss- assets at comprehensive comprehensive held for trading amortized cost income income Total Current Trade receivables — 4,574,581 — — 4,574,581 Notes receivables — — — 2,844,637 2,844,637 Financial assets at fair value through profit or loss 3,503,175 — — — 3,503,175 Restricted cash and term deposits — 1,305,781 — — 1,305,781 Cash and cash equivalents — 7,778,853 — — 7,778,853 Financial assets included in other current assets — 5,663,779 — — 5,663,779 Subtotal 3,503,175 19,322,994 — 2,844,637 25,670,806 Non-current — Other financial assets measured at fair value — — 2,239,251 — 2,239,251 Other non-current assets — 128,673 — — 128,673 Subtotal — 128,673 2,239,251 — 2,367,924 Total 3,503,175 19,451,667 2,239,251 2,844,637 28,038,730 Financial Liabilities As of December 31, 2019 (Restated) Financial assets at fair value Financial through profit or loss- held liabilities at for trading amortized cost Total Current Financial liabilities at fair value through profit or loss 805 — 805 Interest-bearing loans and borrowings — 42,286,604 42,286,604 Payables and accrued liabilities (Note 22) — 10,791,507 10,791,507 Trade and notes payables — 12,608,806 12,608,806 Subtotal 805 65,686,917 65,687,722 Non-current Financial liabilities included in other non-current liabilities (Note 21) — 1,153,487 1,153,487 Interest-bearing loans and borrowings — 59,243,563 59,243,563 Subtotal — 60,397,050 60,397,050 Total 805 126,083,967 126,084,772 (b) Fair value and fair value hierarchy Fair value The carrying amounts and fair values of the Group’s financial instruments at amortized cost, other than those with carrying amounts that reasonably approximate to fair values and those carried at fair value, are as follows: Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial assets Other non-current assets (Note 12) 128,673 127,754 111,935 117,537 Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial liabilities Financial liabilities included in other non-current liabilities (Note 21) 1,153,487 1,036,917 1,146,893 903,141 Long-term interest-bearing loans and borrowings, excluding lease liability (Note 19) 52,232,955 51,260,218 50,952,676 49,729,548 53,386,442 52,297,135 52,099,569 50,632,689 Except for financial assets and financial liabilities mentioned above, management has assessed that the fair values of cash and cash equivalents, restricted cash and time deposits, trade and notes receivables, financial assets included in other current assets, entrusted loans, trade and notes payables, financial liabilities included in other payables and accrued liabilities, short-term and the current portion of interest-bearing loans and borrowings, interest payable and the current portion of long-term payables approximate to their carrying amounts largely due to the short term maturities of these instruments. The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The fair values of the financial assets included in other non-current assets and financial liabilities included in other non-current liabilities and long-term interest-bearing loans and borrowings have been calculated by discounting the expected future cash flows using rates currently available for instruments on with similar terms, credit risk and remaining maturities. The Group’s own non-performance risk for financial liabilities included in other non-current liabilities and long-term interest-bearing loans and borrowings as of December 31, 2020 was assessed to be insignificant. Fair value hierarchy The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments: Assets measured at fair value As of December 31, 2020 Fair value measurement using Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial assets at fair value through profit or loss: Futures contracts 17,311 — — 17,311 Financial assets at fair value through other comprehensive income Notes receivable — — 4,546,223 4,546,223 Listed equity investments 8,812 — — 8,812 Other unlisted investment — — 1,517,891 1,517,891 26,123 — 6,064,114 6,090,237 As of December 31, 2019 Fair value measurement using (Restated) Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial assets at fair value through profit or loss: Futures contracts 3,175 — — 3,175 Financial product — 3,500,000 — 3,500,000 Financial assets at fair value through other comprehensive income Notes receivables — — 2,844,637 2,844,637 Listed equity investments 8,853 — — 8,853 Other unlisted investment — — 2,230,398 2,230,398 12,028 3,500,000 5,075,035 8,587,063 Liabilities measured at fair value As of December 31, 2020 Fair value measurement using Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at fair value through profit or loss: futures contracts 26,684 — — 26,684 26,684 — — 26,684 As of December 31, 2019 Fair value measurement using Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at fair value through profit or loss: futures contracts 805 — — 805 805 — — 805 Assets for which fair values are disclosed: As of December 31, 2020 Fair value measurement using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Loans and receivables: Financial assets included in other non-current assets — 117,537 — 117,537 As of December 31, 2019 Fair value measurement using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Loans and receivables: Financial assets included in other non-current assets — 111,935 — 111,935 Liabilities for which fair values are disclosed: As of December 31, 2020 Fair value measurement using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at amortized cost: Financial liabilities included in other non-current liabilities — 903,141 — 903,141 Long-term interest-bearing loans and borrowings — 49,729,548 — 49,729,548 — 50,632,689 — 50,632,689 As of December 31, 2019 Fair value measurement using (Restated) Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at amortized cost: Financial liabilities included in other non-current liabilities — 1,146,893 — 1,146,893 Long-term interest-bearing loans and borrowings — 50,952,676 — 50,952,676 — 52,099,569 — 52,099,569 During the year ended December 31, 2020 the Group had no transfers of fair value measurements between Level 1 and Level 2 and no transfers into or out of Level 3 for both financial assets and financial liabilities (2019: Nil). Below is a summary of significant unobservable inputs to the valuation of financial instruments as of December 31, 2020 and 2019: Significant Valuation Technique unobservable input Equity investments in Size Industry Investment Fund December 31, 2020 Discounted Cashflow Model Discounted rate Chinalco Innovative December 31, 2020 Market approach Risk premium Notes receivable December 31, 2020 Discounted Cashflow model Discounted rate 37.3 Capital risk management The Group’s capital management objectives are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debts. Consistent with other entities in the industry, the Group monitors capital on the basis of its gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) less restricted cash, time deposits and cash and cash equivalents. Total capital is calculated as equity, as shown in the consolidated statement of financial position, plus net debt less non-controlling interests. The gearing ratio as of December 31, 2020 is as follows: December 31, 2019 December 31, 2020 (Restated) Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) 130,168,916 121,811,607 Less: Restricted cash, term deposits and cash and cash equivalents 9,084,634 10,687,189 Net debt 121,084,282 111,124,418 Total equity 70,757,466 71,171,716 Add: Net debt 121,084,282 111,124,418 Less: Non-controlling interests 16,085,487 16,839,706 Total capital attributable to owners of the parent 175,756,261 165,456,428 Gearing ratio 69 % 67 % |
NON - CONTROLLING INTERESTS
NON - CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2020 | |
NON - CONTROLLING INTERESTS | |
NON - CONTROLLING INTERESTS | 38 NON - CONTROLLING INTERESTS Other than the senior perpetual securities issued by a subsidiary of the Group that presented as non-controlling interests in the consolidated financial statements and disclosed in Note 41, details of the Group’s subsidiaries that have material non-controlling interests are set out below: December 31, 2019 December 31, 2020 Percentage of equity interest held by non-controlling interests Ningxia Energy 29.18 % 29.18 % Shanxi Zhongrun 56.61 % 60.00 % Guizhou Huaren 60.00 % 60.00 % Profit for the year allocated to non-controlling interests Ningxia Energy 240,504 48,040 Shanxi Zhongrun 69,701 147,747 Guizhou Huaren 198,016 420,737 Dividends distributed to non-controlling interests Ningxia Energy 76,469 — Shanxi Zhongrun — — Guizhou Huaren — — Accumulated balances of non-controlling interests at the year ended Ningxia Energy 4,978,089 5,178,314 Shanxi Zhongrun 996,686 1,277,602 Guizhou Huaren 1,028,426 1,359,716 The following tables illustrate the summarised financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: Ningxia Energy Revenue Total expenses Profit for the year Total comprehensive income for the year Current assets Non-current assets Current liabilities Non-current liabilities Net cash flows from operating activities Net cash flows used in investing activities (939,054) (652,297) Net cash flows used in financing activities (2,611,597) (1,792,661) Effect of foreign exchange rate changes, net — — Net increase/(decrease) in cash and cash equivalents (275,968) Shanxi Zhongrun 2019 2020 Revenue 2,204,777 3,561,831 Total expenses 2,081,652 3,315,585 Profit for the year 123,125 246,246 Total comprehensive income for the year 123,125 246,246 Current assets 783,726 643,121 Non-current assets 4,010,818 4,138,211 Current liabilities 1,084,890 2,595,397 Non-current liabilities 2,093,735 45,365 Net cash flows from operating activities 234,014 418,528 Net cash flows used in investing activities (402,636) (188,504) Net cash flows from/used in financing activities 307,452 (404,548) Effect of foreign exchange rate changes, net — — Net (decrease)/increase in cash and cash equivalents 138,830 (174,524) Guizhou Huaren Revenue 5,982,665 6,094,811 Total expenses 5,677,075 5,393,582 Profit for the year 305,590 701,229 Total comprehensive income for the year 305,590 701,229 Current assets 1,034,442 1,610,363 Non-current assets 2,650,822 2,601,807 Current liabilities 1,164,346 1,003,650 Non-current liabilities 1,006,360 932,570 Net cash flows from operating activities 565,027 992,304 Net cash flows used in investing activities (91,319) (27,475) Net cash flows used in financing activities (354,187) (612,892) Effect of foreign exchange rate changes, net — — Net increase in cash and cash equivalents 119,521 351,937 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2020 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 39 BUSINESS COMBINATION (a) In April 2020, pursuant to the agreement entered into between Chalco Logistics Group Zhongzhou Co., Ltd. ("Chalco Logistics Zhongzhou", “中鋁物流集團中州有限公司”, a subsidiary of Chalco Logistics), Henan Zhongzhou Logistics Co., Ltd. (“Henan Zhongzhou Logistics”, “河南中州物流有限公司”, a subsidiary of Zhongzhou Aluminum Factory prior of the transaction), Chalco Logistics Group Co., Ltd. (“Chalco Logistics”, “中鋁物流集團有限公司”, a subsidiary of the Company), Henan Zhongzhou Aluminum Factory Co., Ltd. (“Zhongzhou Aluminum Factory”, “河南中州鋁廠有限公司”, a subsidiary of Chinalco) and Chalco Zhongzhou Aluminum Industry Co., Ltd. ("Zhongzhou Aluminum Industry", “中鋁中州鋁業有限公司”), Chalco Logistics Zhongzhou merged Henan Zhongzhou Logistics, which was a 100% owned subsidiary of Zhongzhou Aluminum Factory prior to the transaction, by issuing new shares of Chalco Logistics Zhongzhou to Zhongzhou Aluminum Factory. (b) Pursuant to the agreement entered into between Chalco Logistics, Southwest Aluminum Industry (Group) Co., Ltd. (“Southwest Aluminum Industry”, “西南鋁業(集團)有限責任公司”, a subsidiary of Chinalco) and Chongqing Southwest Aluminum Transportation Co., Ltd. (“Southwest Aluminum Transportation”, “重慶西南鋁運輸有限公司”, a subsidiary of Southwest Aluminum Industry prior to the transaction), Chalco Logistics acquired Chongqing Xinan Transportation on June 30, 2020 by subscription of its 51% newly issued shares for a cash consideration of RMB8.189 million. (c) On April 29, 2019, Chinalco Shanghai Company Limited (“Chinalco Shanghai”) (“中鋁上海有限公司”), a subsidiary of the Company, entered into an equity transfer agreement with Zhongse Technology Co., Ltd.* (“Zhongse Technology”) (“中色科技股份有限公司”) and Suzhou Research Institute of Non-ferrous Metals Co., Ltd.* (“Suzhou Research Institute”) (“蘇州有色金屬研究院有限公司”), pursuant to which, Chinalco Shanghai acquired 70% and 30% equity interests in Suzhou Zhongse Metal Materials Technology Co., Ltd.* (“Suzhou Zhongcai”) (“蘇州中色金屬材料科技有限公司”) from Zhongse Technology and Suzhou Research Institute, respectively. The consideration for the acquisition was RMB237 thousand, which was determined based on the appraisal value of the 100% equity interest in Suzhou Zhongcai. Chinalco Shanghai has paid the consideration in full as of June 30, 2019. The acquisition date was June 1, 2019, which was the date that the Group obtained control of Suzhou Zhongcai. Before and after the acquisition, both Suzhou Zhongcai and Chinalco Shanghai were controlled by Chinalco, and the control was not temporary. Thus, the acquisition of the 100% equity interest in Suzhou Zhongcai is considered to be a business combination under common control, other than significant influence or joint control. The carrying amounts of the assets and liabilities of Suzhou Zhongcai as of the acquisition date and the comparative financial figures were as follows: December 31, 2018 June 1, 2019 Assets Property, plant and equipment 55,747 55,746 Land use rights 26,574 — Right-of-use assets — 26,318 Other current assets 2,561 2,229 Deferred tax assets 86 143 Trade and notes receivables 3,485 2,758 Cash and cash equivalents 183 136 Liabilities Deferred tax liabilities 111 — Interest-bearing loans and borrowings 51,908 51,908 Other payables and accrued expenses 34,536 33,404 Trade and notes payables 1,664 1,564 Net assets 417 454 Non-controlling interests — — Net assets acquired — 454 Difference recognized in equity (217) Total purchase consideration 237 * (d) Acquisition of Guizhou Huaren In May 2017, the Company, together with Hangzhou Jinjiang, Guizhou Investment and Qingzhen Investment jointly established Guizhou Huaren. The registered capital of Guizhou Huaren is RMB1,200 million, of which the Company holds 40% of equity interest in Guizhou Huaren, Hangzhou Jinjiang holds 30%, while each of the other two shareholders holds 15% equity interest, respectively. According to the article of association of Guizhou Huaren, the directors of the Company considered that the Company had significant influence over Guizhou Huaren, which was accounted for as an associate. In December 2017, the Company and Hangzhou Jinjiang entered into an acting-in-concert agreement which became effective on January 1, 2018. According to the acting-in-concert agreement, Hangzhou Jinjiang agreed to exercise the board members’ and shareholder’s vote in concert with the Company. Accordingly, the directors of the Company considered that the Company obtains control over Guizhou Huaren and has consolidated Guizhou Huaren’s financial position and performance into the Group’s consolidated financial statements since January 1, 2018. The fair value of identifiable assets and liabilities of Guizhou Huaren at the acquisition date are as follows: January 1, 2018 Fair value Assets Property, plant and equipment 2,194,095 Land use rights 109,320 Intangible assets 137 Other current assets 353,655 Inventories 220,718 Trade and notes receivables 250 Restricted cash 324,030 Cash and cash equivalents 673,587 Liabilities Deferred tax liabilities (58,299) Interest-bearing loans and borrowings (1,680,000) Contract liabilities (2,562) Other payables and accrued expenses (345,562) Trade and notes payables (464,454) Net assets 1,324,915 Non-controlling interests 794,949 Share of net assets acquired 529,966 Goodwill — Satisfied by: Cash — Fair value of previously held equity interest 529,966 529,966 Details of the 40% equity interest held by the Company before the acquisition of Guizhou Huaren and the profit from the investment are as follows: January 1, 2018 Initial investment cost 480,000 Share of loss accumulated under the equity method (18,347) Book value of the investment in 40% equity of Guizhou Huaren on the acquisition date 461,653 Fair value of the investment in 40% equity of Guizhou Huaren on the acquisition date (Note) 529,966 Gain on previously held equity interest remeasured at acquisition-date fair value 68,313 Note: The fair value was determined by the valuation report issued by an independent qualified valuer. An analysis of the cash flows in respect of the acquisition of Guizhou Huaren is as follows: RMB’000 Cash consideration — Cash and bank balances acquired 673,587 Net inflow of cash and cash equivalents included in cash flows from investing activities 673,587 The operating results and cash flows of Guizhou Huaren since the merger date to the end of the year are as follows: RMB’000 Revenue 4,282,882 Profit for the period 34,639 Net cash flows (490,684) * (e) Acquisition of Shanxi Zhongrun In February 2017, the Company entered into a capital injection and enlargement agreement on Shanxi Zhongrun with Huarun (Coal) Group Co., Ltd.* (“Huarun (Coal) Group”) (華潤(煤業)集團有限公司), Shanxi Xishan Coal and Electricity Power Co., Ltd.* (“Xishan Coal Electricity”) (山西西山煤電股份有限公司) and Jin Energy Power Group Co., Ltd.* (“Jin Energy Power”) (晉能電力集團有限公司). After the capital contribution, the registered capital of Shanxi Zhongrun is RMB500 million, of which the Company holds 40% of equity interest in Shanxi Zhongrun while each of the other three shareholders holds a 20% equity interest, respectively. The Company can appoint two out of the five directors of the board of directors. According to the article of association of Shanxi Zhongrun and the agreement, the directors of the Company considered that the Company had significant influence over Shanxi Zhongrun, which was accounted for as an associate. In December 2017, the Company and Huarun (Coal) Group entered into an acting-in-concert agreement which was effective on January 1, 2018. According to the acting-in-concert agreement, Huarun (Coal) Group agreed to exercise the board members’ and shareholder’s vote in concert with the Company. Accordingly, the directors of the Company considered that the Company obtains control over Shanxi Zhongrun and has consolidated Shanxi Zhongrun’s financial position and performance into the Group’s consolidated financial statements since January 1, 2018. The fair value of identifiable assets and liabilities of Shanxi Zhongrun at the acquisition date are as follows: January 1, 2018 Fair value Assets Property, plant and equipment 2,292,483 Intangible assets 749 Other current assets 215,575 Inventories 15,473 Trade and notes receivables 4,135 Cash and cash equivalents 2,173,062 Liabilities Deferred tax liabilities (41,581) Interest-bearing loans and borrowings (3,485,852) Other payables and accrued expenses (37,789) Trade and notes payables (13,778) Net assets 1,122,477 Non-controlling interests 673,486 Share of net assets acquired 448,991 Goodwill — Satisfied by: Cash — Fair value of previously held equity interest 448,991 448,991 Details of the 40% equity interest held by the Company before the acquisition of Shanxi Zhongrun and the profit from the investment are as follows: January 1, 2018 Initial investment cost 400,184 Share of loss accumulated under the equity method (6,553) Book value of the investment in 40% equity of Shanxi Zhongrun on the acquisition date 393,631 Fair value of the investment in 40% equity of Shanxi Zhongrun on the acquisition date (Note) 448,991 Gain on previously held equity interest remeasured at acquisition-date fair value 55,360 Note: The fair value was determined by the valuation report issued by an independent qualified valuer. An analysis of the cash flows in respect of the acquisition of Shanxi Zhongrun is as follows: RMB’000 Cash consideration — Cash and bank balances acquired 2,173,062 Net inflow of cash and cash equivalents included in cash flows from investing activities 2,173,062 The operating results and cash flows of Shanxi Zhongrun since the acquisition date to December 31, 2018 are as follows: RMB’000 Revenue 645,214 Profit for the period 817 Net cash flows (2,137,166) * (f) Acquisition of Shanxi Huaxing On December 31, 2017, the Company, Chalco Hong Kong and Baotou Communication Investment held 10%, 40% and 50% of the shares of Shanxi Huaxing, respectively. According to the articles of association of Shanxi Huaxing, the Group can exercise joint control over Shanxi Huaxing and therefore, which was accounted for as a joint venture accordingly. In December 2018, the Company entered into an equity transfer agreement with Baotou Communication Investment. According to the agreement, the Company acquired 50% of Shanxi Huaxing’s equity with a consideration at RMB2,665 million in cash. Upon completion of the transaction, the Group held a total of 100% of Shanxi Huaxing’s shares. The directors of the Company considered that the Company obtains control over Shanxi Huaxing and has consolidated Shanxi Huaxing’s financial position and performance into the Group’s consolidated financial statements since the acquisition date of December 6, 2018. The fair value of identifiable assets and liabilities of Shanxi Huaxing at the acquisition date are as follows: December 6, 2018 Fair value Assets Property, plant and equipment 7,327,807 Intangible assets 728,067 Land use right 348,901 Deferred tax assets 8,094 Other non-current assets 60,336 Other current assets 102,396 Inventories 865,418 Trade and notes receivables 44,706 Restricted cash 203,350 Cash and cash equivalents 81,344 Liabilities Deferred tax liabilities (722,349) Interest-bearing loans and borrowings (1,743,036) Other non-current liabilities (239,998) Contract liabilities (617,827) Other payables and accrued expenses (686,024) Trade and notes payables (1,594,724) Net assets 4,166,461 Non-controlling interests — Share of net assets acquired 4,166,461 Goodwill 1,163,949 Satisfied by: Cash 2,665,205 Fair value of previously held equity interest 2,665,205 5,330,410 Details of the 50% equity interest held by the Group before the acquisition of Shanxi Huaxing and the profit from the investment are as follows: December 6, 2018 Initial investment cost 2,351,479 Share of loss accumulated under the equity method (77,309) Share of changes in reserves under the equity method 11,166 Cash dividends declared (236,556) Book value of the investment in 50% equity of Shanxi Huaxing on the acquisition date 2,048,780 Fair value of the investment in 50% equity of Shanxi Huaxing on the acquisition date (Note) 2,665,205 Gain on previously held equity interest remeasured at acquisition-date fair value 616,425 Note: The fair value was determined by the valuation report issued by an independent qualified valuer. An analysis of the cash flows in respect of the acquisition of Shanxi Huaxing is as follows: RMB’000 Cash consideration (2,665,205) Cash and bank balances acquired 81,344 Net inflow of cash and cash equivalents included in cash flows from investing activities (2,583,861) The operating results and cash flows of Shanxi Huaxing since the acquisition date to December 31, 2018 are as follows: RMB’000 Revenue 415,509 Profit for the period 110,917 Net cash flows (434) * (g) Acquisition of Shandong Aluminum Carbon Plant On August 31, 2018, Chalco Shandong, a subsidiary of the Company, entered into an asset transfer agreement with Shandong Aluminum Plant, pursuant to which, Chalco Shandong acquired Shandong Aluminum Carbon Plant from Shandong Aluminum at a total consideration of RMB146 million. The consideration was determined based on the appraisal report issued by an independent qualified valuer. Chalco Shandong has paid all consideration as of December 31, 2018. In the opinion of the directors of the Company, Shandong Aluminum Carbon Plant constitutes a business. Before and after the acquisition, Chalco Shandong and Shandong Aluminum were controlled by Chinalco, and the control was not temporary. As such, the acquisition is considered to be a business combination under common control. The acquisition date was August 31, 2018, which is determined by the date of transfer of the assets. The carrying amounts of the assets and liabilities of Shandong Aluminum Carbon Plant as of the transaction date and the comparative financial figures were as follows: December 31, 2017 August 31, 2018 Assets Property, plant and equipment 24,393 23,845 Inventories 51,104 46,150 Other current assets 418 411 Trade and notes receivables 23,052 44,522 Cash and cash equivalents 34,354 — Liabilities Trade and notes payables (12,235) (24,011) Contract liabilities — (1,432) Other payables and accrued expenses (38,415) (1,542) Net assets 82,671 87,943 Difference recognized in equity 58,319 Total purchase consideration 146,262 (h) On August 30, 2018, Guangxi Branch of the Company entered into an asset transfer agreement with Pingguo Aluminum, pursuant to which, Guangxi Branch of the Company acquired Pingguo Aluminum Carbon Plant from Pingguo Aluminum at a total consideration of RMB92 million. The consideration was determined based on the appraisal report issued by an independent qualified valuer. Guangxi Branch of the Company has paid all consideration as of December 31, 2018. In the opinion of the directors of the Company, the Pingguo Aluminum Carbon Plant constitutes a business. Before and after the acquisition, Guangxi Branch and Pingguo Aluminum were controlled by Chinalco, and the control was not temporary. As such, the acquisition is considered to be a business combination under common control. The acquisition date was August 30, 2018, which is determined by the date of transfer of the assets. The carrying amounts of the assets and liabilities of Pingguo Aluminum Carbon Plant as of the transaction date and the comparative financial figures were as follows: December 31, 2017 August 30, 2018 Assets Property, plant and equipment 35,201 127,315 Trade and notes receivables 12,143 — Inventories 90,581 71,264 Liabilities Trade and notes payables (69,521) (117,749) Net assets 68,404 80,830 Difference recognized in equity 11,218 Total purchase consideration 92,048 (i) On August 30, 2018, Chalco Mining, a subsidiary of the Company, entered into an equity transfer agreement with China Great Wall Aluminum and Henan Great Wall Zhongxin, pursuant to which, Chalco Mining acquired 57.69% and 19.96% equity interest in Red Chibi Great Wall from China Great Wall Aluminum and Henan Great Wall Zhongxin, respectively. The consideration for the acquisition was RMB202 million, which was determined based on the appraisal value of the 77.65% equity interest in Chibi Great Wall Carbon. As of December 31, 2018, Chalco Mining has paid the consideration in receivables amounting to RMB70 million and cash amounting to RMB132 million, respectively. The transaction date was August 30, 2018, which was the date that the Group obtained control of Chibi Great Wall Carbon. Before and after the acquisition, both Chibi Great Wall Carbon and Chalco Mining were controlled by Chinalco, and the control was not temporary. Thus, the acquisition of the 77.65% equity interest in Chibi Great Wall Carbon is considered to be a business combination under common control. The carrying amounts of the assets and liabilities of Red Cliff Carbon as of the transaction date and the comparative financial figures were as follows: December 31, 2017 August 30, 2018 Assets Property, plant and equipment 271,604 379,618 Land use rights 26,124 25,731 Deferred tax assets 3,325 3,325 Inventories 59,035 65,440 Other current assets 11,095 18,608 Trade and notes receivables 32,880 53,392 Restricted Cash 15,700 — Cash and cash equivalents 50,545 16,258 Liabilities Interest-bearing loans and borrowings (228,500) (233,000) Contract liabilities — (1,816) Trade and notes payables (46,702) (56,970) Other payables and accrued expenses (51,595) (52,114) Income tax payable (2,927) — Other non-current liabilities (69,640) (65,901) Net assets 70,944 152,571 Non-controlling interests (15,856) (34,100) Difference recognized in equity 83,497 Total purchase consideration 201,968 (j) On August 30, 2018, China Aluminum Logistics Group Corporation Co., Ltd. (“China Aluminum Logistics Group”) (“中鋁物流集團有限公司”), a subsidiary of the Company, entered into an equity transfer agreement with Northeast Light Alloy Co., Ltd., pursuant to which, Chalco Aluminum Logistics acquired a 51% equity interest in East Light Logistics from Northeast Light Alloy Co., Ltd. The consideration for the acquisition was RMB3 million, which was determined based on the appraisal value of the 51% equity interest in East Light Logistics and China Aluminum Logistics Group has paid all consideration as of December 31, 2018. The transaction date was August 30, 2018, which was the date that the Group obtained control of East Light Logistics. Before and after the acquisition, both East Light Logistics and China Aluminum Logistics Group were controlled by Chinalco, and the control was not temporary. As such, the acquisition of the 51% equity interest in East Light Logistics is considered to be a business combination under common control. The carrying amount of the assets and liabilities of East Light Logistics as of the transaction date and the comparative financial figures were as follows: December 31, 2017 September 17, 2018 Assets Property, plant and equipment 2,901 3,839 Inventories 127 2,207 Other current assets 200 608 Trade and notes receivables 6,704 6,828 Cash and cash equivalents 281 403 Liabilities Trade and notes payables (2,062) (4,647) Contract liabilities — (1,504) Income tax payable (130) — Other payables and accrued expenses (1,323) (2,065) Net assets 6,698 5,669 Non-controlling interests (3,281) (2,778) Net assets acquired 2,891 Difference recognized in equity 413 Total purchase consideration 3,304 |
DISPOSAL OF SUBSIDIARIES
DISPOSAL OF SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2020 | |
DISPOSAL OF SUBSIDIARIES | |
DISPOSAL OF SUBSIDIARIES | 40 DISPOSAL OF SUBSIDIARIES (a) Disposal of 75% equity of Shandong Shanlv Electronic Ltd. In July 2020, the Group entered into a Capital Contribution Agreement with a third part on disposal of 75% equity interest of Shandong Shanlv Electronic Ltd.. A gain of RMB10.72 million from partial disposal of the subsidiary was recognized this year. (b) In January 2019, the Company entered into a Capital Contribution Agreement with Chinalco and its subsidiary Chinalco Innovative, pursuant to which the Company shall make a capital contribution to Chinalco Innovative in form of its 100% equity interests in China Aluminum Nanhai Alloy Co., Ltd. (“China Aluminum Nanhai Alloy”). After the transaction, the Company holds 19.4852% in Chinalco Innovative. As of the date of deemed disposal, the Company re-measured the equity of China Aluminum Nanhai Alloy to a fair value of RMB350 million and recognized the fair value gain of RMB258 million accordingly. (c) On February 20, 2019, Chalco Energy Co., Ltd., a wholly-owned subsidiary of the Company, entered into equity transfer agreements with Chinalco Environment Protection Co., Ltd. on the partial disposal of 40% equity interests in Inner Mongolia Fengrong Co., Ltd. and 60% equity interests in Ningxia Fenghao Co., Ltd., respectively. A gain of RMB3,014 thousands from partial disposal of the two subsidiaries was recorded by the Group in the current period. (d) Chalco Trade, a subsidiary of the Company, held 100% equity interest of Shanghai Chalco Kailin Aluminum Co., Ltd. * (上海中鋁凱林鋁業有限公司) (“Shanghai Kailin”). In July 2019, Shanghai Kailin was deregistered, from which the Company recorded a gain of RMB160 thousands. (e) Zhongzhou Aluminum, a subsidiary of the Company, held a 51% equity interest in Ruzhou Chinalco Jinhua Mining Co., Ltd. * (汝州中鋁金華礦業有限公司) (“Ruzhou Jinhua”). In July 2019, Zhongzhou Aluminum disposed all of its equity interests of Ruzhou Jinhua, and a gain of RMB113 thousands from the disposal was included in other gains during the year ended December 31, 2019. (f) In August 2018, Chalco Trading, a subsidiary of the Company, agreed to transfer a 51% equity interest in Zhengzhou Chalco Longyu Mining Co., Ltd.* (“Longyu Mining”) (“鄭州中鋁龍宇礦業有限公司”) to a third party. As of the date of disposal, the Group recognized a gain of disposal of subsidiary of RMB8 million. (g) In March 2018, Shanxi Jiexiu People’s Court accepted the liquidation petition filed by the Group’s subsidiary, Shanxi Huatai Carbon Co., Ltd.* (“山西華泰碳素有限責任公司”). Upon the liquidation, administrators took control over Shanxi Huatai Carbon Co., Ltd., and the directors of the Company considered that the Company lost control over Shanxi Huatai Carbon Co., Ltd. and therefore, ceased to consolidate Shanxi Huatai Carbon Co., Ltd. since then. The Group recognized a loss of RMB2 million for lost control over Shanxi Huatai Carbon Co., Ltd. (h) In June 2018, Shanxi Hejin People’s Court accepted the liquidation petition filed by the Group’s subsidiary, Hedong Carbon Co., Ltd.* (“河東碳素”). Upon the liquidation, administrators took control over Hedong Carbon Co., Ltd., and the directors of the Company considered that the Company lost control over Hedong Carbon Co., Ltd. and therefore, ceased to consolidate Hedong Carbon Co., Ltd. since then. The Group recognized a loss of RMB2 million for lost control over Hedong Carbon Co., Ltd. * The English name represents the best effort made by management of the Group in translating its Chinese name as it does not have any official English names. |
OTHER EQUITY INSTRUMENTS
OTHER EQUITY INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
OTHER EQUITY INSTRUMENTS | |
OTHER EQUITY INSTRUMENTS | 41 OTHER EQUITY INSTRUMENTS On October 27, 2015, the Company issued RMB2,000 million perpetual medium-term notes with an initial distribution rate at 5.50% (the “2015 Perpetual Medium-term Notes”). The proceeds from the issuance of the 2015 Perpetual Medium-term Notes were RMB2,000 million. The proceeds were used for the repayment of interest-bearing loans and borrowings. Coupon payments of 5.50% per annum on the 2015 Perpetual Medium-term Notes have been made annually in arrears from October 29, 2015 and may be deferred at the discretion of the Company. The 2015 Perpetual Medium-term Notes have no fixed maturity date and the Group repaid the principal amounts together with any accrued, unpaid or deferred coupon distribution payments on October 29, 2020 . On October 31, 2016, Chalco Hong Kong Investment issued USD500 million senior perpetual securities with an initial distribution rate at 4.25% (the “2016 Senior Perpetual Securities”). The proceeds from the issuance of the 2016 Senior Perpetual Securities after the issuance costs were USD498 million (equivalent to RMB3,374 million). The proceeds were on-lent to the Company and any of its subsidiaries for general corporate use. Coupon payments of 4.25% per annum on the 2016 Senior Perpetual Securities have been made semi-annually on April 29 and October 29 in arrears from November 7, 2016 and may be deferred at the discretion of the Group. The first coupon payment date was April 29, 2017. The 2016 Senior Perpetual Securities have no fixed maturity date and are callable only at the Group’s option on or after November 7, 2021 at their principal amounts together with any accrued, unpaid or deferred coupon distribution payments. After November 7, 2021, the coupon distribution rate will be reset to a percentage per annum equal to the sum of (a) the initial spread of 2.931 percent, (b) the U.S. Treasury Rate, and (c) a margin of 5.00 percent per annum. While any coupon distribution payments are unpaid or deferred, the Group, the wholly-owned subsidiaries of Chalco Hong Kong as guarantors, and the Issuer cannot declare or pay dividends or make distributions or similar discretionary payments in respect of, or repurchase, redeem or otherwise acquire any securities of lower or equal rank. On October 19, 2018, the Company issued RMB2,000 million perpetual medium-term notes with an initial distribution rate at 5.10% (the “2018 Perpetual Medium-term Notes”). The proceeds from the issuance of the 2018 Perpetual Medium-term Notes were RMB2,000 million. The proceeds were used for the repayment of interest-bearing loans and borrowings. Coupon payments of 5.10% per annum on the 2018 Perpetual Medium-term Notes have been made annually in arrears from October 19, 2018 and may be deferred at the discretion of the Company. The 2018 Perpetual Medium-term Notes have no fixed maturity date and are callable only at the Group’s option on October 23, 2021 or any coupon distribution date after October 23, 2021 at their principal amounts together with any accrued, unpaid or deferred coupon distribution payments. The coupon distribution rate will be reset to a percentage per annum equal to the sum of (a) the initial spread of 2.61 percent, (b) the China Treasury Rate, and (c) a margin of maximum 500 Bps every five years after October 23, 2021. While any coupon distribution payments are unpaid or deferred, the Company cannot declare or pay dividends to shareholders or decrease the share capital, or make material fixed asset investments. On November 19, 2019, the Company issued RMB1,500 million perpetual medium-term notes with an initial distribution rate at 4.20% (the “2019 Perpetual Medium-term Notes”). The proceeds from the issuance of the 2019 Perpetual Medium-term Notes were RMB1,499 million. The proceeds were used for the repayment of interest-bearing loans and borrowings. Coupon payments of 4.20% per annum on the 2019 Perpetual Medium-term Notes have been made annually in arrears from November 19, 2019 and may be deferred at the discretion of the Company. The 2019 Perpetual Medium-term Notes have no fixed maturity date and are callable only at the Group’s option on November 20, 2022 or any coupon distribution date after November 20, 2022 at their principal amounts together with any accrued, unpaid or deferred coupon distribution payments. The coupon distribution rate will be reset to a percentage per annum equal to the sum of (a) the initial spread of 1.31 percent, (b) the China Treasury Rate, and (c) a margin of maximum 300 Bps every five years after November 20, 2022. While any coupon distribution payments are unpaid or deferred, the Company cannot declare or pay dividends to shareholders or decrease the share capital, or make material fixed asset investments. On December 2, 2020, the Company issued RMB1,000 million perpetual medium-term notes with an initial distribution rate at 4.45% (the “2020 Perpetual Medium-term Notes”). The proceeds from the issuance of the 2020 Perpetual Medium-term Notes were RMB1,000 million. The proceeds were used for the repayment of interest-bearing loans and borrowings. Coupon payments of 4.45% per annum on the 2020 Perpetual Medium-term Notes have been made annually in arrears from December 2, 2020 and may be deferred at the discretion of the Company. The 2020 Perpetual Medium-term Notes have no fixed maturity date and are callable only at the Group’s option on December 3, 2022 or any coupon distribution date after December 3, 2022 at their principal amounts together with any accrued, unpaid or deferred coupon distribution payments. The coupon distribution rate will be reset to a percentage per annum equal to the sum of (a) the initial spread of 1.42 percent, (b) the China Treasury Rate, and (c) a margin of maximum 300 Bps every two years after December 3, 2022. While any coupon distribution payments are unpaid or deferred, the Company cannot declare or pay dividends to shareholders or decrease the share capital, or make material fixed asset investments. According to the terms and conditions of the 2016 Senior Perpetual Securities, the 2018 Perpetual Medium-term Notes, the 2019 Perpetual Medium-term Notes and the 2020 Perpetual Medium-term Notes, the Group has no contractual obligations to repay their principal or to pay any coupon distributions. Thus in the opinion of the directors of the Company, they do not meet the definition of financial liabilities according to IAS 32 Financial Instruments: Presentation, and are classified as equity and subsequent distributions declared will be treated as distributions to equity owners. |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
CONTINGENT LIABILITIES | |
CONTINGENT LIABILITIES | 42 CONTINGENT LIABILITIES The Group is a defendant in a number of lawsuits arising in the ordinary course of business. While the outcomes of such lawsuits cannot be determined at present, management believes that any resulting liabilities will not have a material adverse effect on the financial position or operating results the Group. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS | |
COMMITMENTS | 43 COMMITMENTS (a) Capital commitments December 31, 2019 December 31, 2020 Property, plant and equipment 4,041,857 1,437,354 (b) Other capital commitments As of December 31, 2020, the commitments to make capital contributions to the Group’s joint ventures and associates were as follows: December 31, 2019 December 31, 2020 Associates 33,800 351,800 Joint ventures 410,000 410,000 443,800 761,800 |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2020 | |
EVENTS AFTER THE REPORTING PERIOD | |
EVENTS AFTER THE REPORTING PERIOD | 44 EVENTS AFTER THE REPORTING PERIOD (a) On January 22, 2021, the Group completed an issuance of short-term bonds with a total face value of RMB2 billion at par value of RMB100.00 per unit which will mature in July 2021 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.75%. (b) On March 9, 2021, the Group completed an issuance of short-term bonds with a total face value of RMB2 billion at par value of RMB100.00 per unit which will mature in March 2021 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.45%. (c) On March 11, 2021, the Group completed an issuance of short-term bonds with a total face value of RMB2 billion at par value of RMB100.00 per unit which will mature in June 2021 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.65%. (d) On March 15, 2021, the Group completed an issuance of short-term bonds with a total face value of RMB2 billion at par value of RMB100.00 per unit which will mature in June 2021 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.75%. (e) On March 23, 2021, the Board of Directors of the Company approved a proposal to make up the accumulated loss of the Company with appropriation of statutory surplus reserve amounting to RMB 4.23 billion. This proposal is subject to further approval in the 2020 annual general meeting of the Company. |
COMPARATIVE AMOUNT
COMPARATIVE AMOUNT | 12 Months Ended |
Dec. 31, 2020 | |
COMPARATIVE AMOUNT | |
COMPARATIVE AMOUNT | 45 COMPARATIVE AMOUNT Certain comparative amounts have been restated as a result of the business combinations under common control as disclosed in Note 39. |
APPROVAL OF THE FINANCIAL STATE
APPROVAL OF THE FINANCIAL STATEMENT | 12 Months Ended |
Dec. 31, 2020 | |
APPROVAL OF THE FINANCIAL STATEMENT | |
APPROVAL OF THE FINANCIAL STATEMENT | 46 APPROVAL OF THE FINANCIAL STATEMENT The financial statements were approved and authorised for issue by the Board of Directors on April 22, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of preparation | 2.1 Basis of preparation 2.1.1 The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and the disclosure requirements of the Hong Kong Companies Ordinance Cap. 622 (“HKCO”). The preparation of the financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3. 2.1.2 As of December 31, 2020, the Group’s current liabilities exceeded its current assets by approximately RMB16,424 million (December 31, 2019 (restated): RMB20,502 million). The directors of the Company have considered the Group’s available sources of funds as follows: · The Group’s expected net cash inflows from operating activities in 2021; · Unutilized banking facilities of approximately RMB156,318 million as of December 31, 2020, of which amounts totalling RMB130,371 million will be subject to renewal during the next 12 months. The directors of the Company are confident that these banking facilities could be renewed upon expiration based on the Group’s past experience and good credit standing; · Bond facilities registered with National Association of Financial Market Institutional Investors but not yet utilized; and · Other available sources of financing from banks and other financial institutions given the Group’s credit history. The directors of the Company believe that the Group has adequate resources to continue operations for the foreseeable future of not less than 12 months from December 31, 2020. The directors of the Company therefore are of the opinion that it is appropriate to adopt the going concern basis in preparing the consolidated financial statements. 2.1.3 The financial statements have been prepared on a historical cost basis except for certain financial assets and financial liabilities measured at fair value. 2.1.4 The Group has applied the following standards and amendments for the first time for their annual reporting period commencing January 1, 2020: · Definition of Material – amendments to IAS 1 and IAS 8 · Definition of a Business – amendments to IFRS 3 · Interest Rate Benchmark Reform – amendments to IFRS 9, IAS 39 and IFRS 7 · Covid-19-Related Rent Concessions – amendments to IFRS 16 · Revised Conceptual Framework for Financial Reporting The amendments listed above did not have any material impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods. 2.1.5 Certain new accounting standards and interpretations have been published that are not mandatorily effective for December 31, 2020 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. |
Principles of consolidation and equity accounting | 2.2 Principles of consolidation and equity accounting 2.2.1 Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (Note 2.3). Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss and other comprehensive income, statement of changes in equity and balance sheet respectively. 2.2.2 Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (Note 2.2.4), after initially being recognized at cost. 2.2.3 Under IFRS 11 ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Group only has joint ventures. Joint ventures Interests in joint ventures are accounted for using the equity method (Note 2.2.4), after initially being recognized at cost in the consolidated statement of financial position. 2.2.4 Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in Note 2.11. 2.2.5 The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss or transferred to another category of equity as specified/ permitted by applicable IFRSs. If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate. |
Business combination | 2.3 (a) Merger accounting for business combinations under common control The consolidated financial statements incorporate the financial statements of the combining entities or businesses in business combination under common control as if they had been combined from the date when the combining entities or businesses first came under the control of the ultimate holding company. The net assets of the combining entities or businesses are consolidated using the carrying amount from the ultimate holding company’s perspective. No amount is recognized for goodwill or excess of the Group‘s interest in the book value of the net assets over cost at the time of the common control combination, to the extent of the continuation of the ultimate holding company’s interest. The consolidated statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under common control, where this is a shorter period, regardless of the date of the common control combination. The comparative financial data have been restated to reflect the business combinations under common control occurred during this year as disclosed in Note 39. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders, costs or losses incurred in combining operations of the previously separate businesses and other costs incurred in relation to the common control combination that is to be accounted for by using the merger accounting method are recognized as expenses in the period in which they are incurred. (b) Acquisition method of accounting for other business combinations and goodwill The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group, other than common control combinations. The consideration transferred is measured at the acquisition date fair value which is the sum of acquisition date fair value of assets transferred by the Group, liabilities assumed by the Group to the former owner of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. The consideration transferred included the fair value of any assets and liabilities resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at fair value at the acquisition date. All other components of non-controlling interests are measured at fair value. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportional share of net assets in the event of liquidation at fair value or at the proportional share of the acquiree's identifiable net assets. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. This includes the separation of embedded derivatives in host contracts of the acquiree. If the business combination is achieved in stages, the previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling interests and any fair value of the Group's previously held equity interests in the acquiree over the identifiable net assets acquired and liabilities assumed. If the sum of this consideration and other items is lower than the fair value of the net assets acquired, the difference is, after reassessment, recognized in profit or loss as a gain on bargain purchase. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group performs its annual impairment test of goodwill as of December 31. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the cash generating unit (group of cash- generating units) to which the goodwill relates. Where the recoverable amount of the cash-generating unit (group of cash generating units) is less than the carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not reversed in a subsequent period. Where goodwill has been allocated to a cash-generating unit (or group of cash generating units) and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on the disposal. Goodwill disposed of in these circumstances is measured based on the relative value of the operation disposed of and the portion of the cash-generating unit retained. |
Separate financial statements | 2.4 Separate financial statements Investments in subsidiaries, associates and jointly ventures are accounted for at cost less impairment. Cost includes direct attributable costs of investment. The results of subsidiaries, associates and jointly ventures are accounted for by the Company on the basis of dividend received and receivable. Impairment testing of the investments in subsidiaries, associates and jointly ventures is required upon receiving a dividend from these investments if the dividend exceeds the total comprehensive income of the subsidiary, associates and jointly ventures in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee’s net assets including goodwill. |
Segment reporting | 2.5 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision-makers, who are responsible for allocating resources and assessing the performance of the operating segments, have been identified as the executive presidents committee of the Company that make strategic decisions. |
Foreign currency translation | 2.6 Foreign currency translation Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in RMB, which is the Company’s functional and presentation currency. Transactions and balances Foreign currency transactions recorded by the entities in the Group are initially recorded using their respective functional currency rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rates of exchange ruling at the end of the reporting period. Differences arising on settlement or translation of monetary items are recognized in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non- monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of a non-monetary item measured at fair value is treated in line with the recognition of the gain or loss on change in fair value of the item. In determining the exchange rate on initial recognition of the related asset, expense or income on the derecognition of a non-monetary asset or non-monetary liability relating to an advance consideration, the date of initial transaction is the date on which the Group initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Group determines the transaction date for each payment or receipt of the advance consideration. Group companies The results and financial positions of all the group entities (none of which has the currency of a hyper-inflationary economy) that has a functional currency different from the presentation currency are translated into the presentation currency as follows: (i) assets and liabilities in each statement of financial position presented are translated at the closing rates at the end of the reporting period; (ii) income and expenses in each statement of profit and loss and other comprehensive income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rates at the dates of the transactions); and (iii) all resulting exchange differences are recognized in other comprehensive income. Upon disposal of a foreign operation, the other comprehensive income related to the foreign operation is reclassified to profit or loss. Goodwill and fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehensive income. |
Property, plant and equipment | 2.7 Property, plant and equipment Property, plant and equipment, other than construction in progress, are stated at cost less accumulated depreciation and any impairment losses. When an item of property, plant and equipment is classified as held for sale or when it is part of a disposal group classified as held for sale, it is not depreciated and is accounted for in accordance with IFRS 5. The cost of an item of property, plant and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after items of property, plant and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalized in the carrying amount of the asset as a replacement. Where significant parts of property, plant and equipment are required to be replaced at intervals, the Group recognizes such parts as individual assets with specific useful lives and depreciates them accordingly. Depreciation is calculated on the straight-line basis to write off the cost of each item of property, plant and equipment to its residual value over its estimated useful life. The principal annual rates used for this purpose are as follows: Buildings 8 – 45 years Machinery 3 – 30 years Transportation facilities 6 – 10 years Office and other equipment 3 – 10 years Where parts of an item of property, plant and equipment have different useful lives, the cost of that item is allocated on a reasonable basis among the parts and each part is depreciated separately. Residual values, useful lives and the depreciation method are reviewed, and adjusted if appropriate, at least at each financial year end. An item of property, plant and equipment including any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal or retirement recognized in profit or loss in the year the asset is derecognized is the difference between the net sales proceeds and the carrying amount of the relevant asset. Construction in progress (“CIP”) represents buildings under construction, which is stated at cost less any impairment losses, and is not depreciated. Cost comprises the direct costs of construction and capitalized borrowing costs on related borrowed funds during the period of construction. CIP is reclassified to the appropriate categories of property, plant and equipment when completed and ready for use. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.11). |
Investment properties | 2.8 Investment properties Investment properties are interests in land use rights and buildings (including the leasehold property held as a right-of-use asset which would otherwise meet the definition of an investment property) held to earn rental income and/or for capital appreciation, rather than for use in the production or supply of goods or services or for administrative purposes; or for sale in the ordinary course of business. Such properties are measured initially at cost, including transaction costs. After initial recognition, the Group uses the cost methods to measure all of its investment properties. Depreciation is calculated on the straight-line basis to write off the cost to investment property's residual value over its estimated useful life. The estimated useful lives are as follows: Buildings 50 years Land use rights 40 – 70 years The carrying amounts of investment properties measured using the cost method are reviewed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the year of the retirement or disposal. |
Intangible assets | 2.9 Intangible assets (a) Goodwill Goodwill is measured as described in Note 2.3. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortized but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the operating segments (Note 5). (b) Mining rights and mineral exploration rights The Group’s mineral exploration rights and mining rights relate to coal, bauxite and other mines. (i) Recognition Except for mineral exploration rights and mining rights acquired in a business combination, mineral exploration rights and mining rights are initially recorded at cost which includes the acquisition consideration, qualifying exploration and other direct costs. The mineral exploration rights are stated at cost less any impairment, and the mining rights are stated at cost less any amortization and impairment. (ii) Reclassification Mineral exploration rights are converted to mining rights when obtain mining rights certification, or technical feasibility and commercial viability of extracting a mineral resource are demonstrable, and are subject to amortization when commercial production has commenced. The Group assesses the stage of each mine under construction to determine when a mine moves into the production stage. The criteria used to assess the start date are determined based on the unique nature of each mine construction project. The Group considers various relevant criteria, such as completion of a reasonable period of testing of the mine and equipment, ability to produce in saleable form (within specifications) and ability to sustain ongoing production to assess when a mine is substantially complete and ready for its intended use. (iii) Amortization Mining rights other than coal mining rights are amortized on a straight-line basis over a shorter period of the mining right valid period and expected mining life. Estimated mineable periods of the majority of the mining rights range from 3 to 30 years. Coal mining rights are amortized on a unit-of-production basis over the economically recoverable reserves evaluated based on the reserves estimated in accordance with the standards of the mine concerned. (iv) Impairment An impairment review is performed when there are indicators that the carrying amount of the mineral exploration rights and mining rights may exceed their recoverable amounts. To the extent that this occurs, the excess is fully provided as an impairment loss. (c) Computer software Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use specific software. These costs are amortized over their estimated useful lives, which do not exceed 10 years. Costs associated with maintaining computer software programs are recognized as an expense as incurred. (d) Aluminum production quota Aluminum production quota are initially recorded at cost and subsequently states at cost less any amortization and impairment. Amortization is provided on a straight-line basis over expected useful life. (e) Other intangible assets Other intangible assets mainly include profit-sharing rights of Maochang mine, which are initially recorded at costs incurred to acquire the specific right. Amortization is calculated on the straight-line basis over its estimated useful life. The estimated useful live of profit-sharing rights of Maochang mine is 22.5 years. For intangible assets with finite useful life, the estimated useful lives and amortization method are reviewed annually at the end of each reporting period and adjusted when necessary. |
Research and development costs | 2.10 Research and development costs Research and development expenditures are classified as research expenditures and development expenditures according to the nature of the expenditures and whether there is significant uncertainty of development activities transforming to assets. Research expenditures are recognized in profit or loss for the current period. Development expenditures are recognized as assets when all of the following criteria are met: (i) it is technically feasible to complete the asset so that it will be available for use or sale; (ii) management intends to complete the asset and intends and has the ability to use or sell it; (iii) it can be demonstrated that the asset will generate probable future economic benefits; (iv) there are adequate technical, financial and other resources to complete the development of the asset and management has the ability to use or sell the asset; and (v) the expenditure attributable to the asset during its development phase can be reliably measured. Development expenditures that do not meet the criteria above are recorded in profit or loss for the current period as incurred. Development expenditures that have been recorded in profit or loss in previous periods will be not recognized as assets in subsequent periods. The Group has not had any development expenditure capitalized. |
Impairment of non-financial assets | 2.11 Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. |
Non-current assets (or disposal groups) held for sale | 2.12 Non-current assets (or disposal groups) held for sale Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement. An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset (or disposal group) is recognized at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. |
Investments and other financial assets | 2.13 Investments and other financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income, and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient of not adjusting the effect of a significant financing component, the Group initially measures a financial asset at its fair value, plus in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15 in accordance with the policies set out for “Revenue recognition” below. In order for a financial asset to be classified and measured at amortized cost or fair value through other comprehensive income, it needs to give rise to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows, while financial assets classified and measured at fair value through other comprehensive income are held within a business model with the objective of both holding to collect contractual cash flows and selling. Financial assets which are not held within the aforementioned business models are classified and measured at fair value through profit or loss. All regular way purchases and sales of financial assets are recognized on the trade date, that is, the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the market place. Subsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets at amortized cost (debt instruments) Financial assets at amortized cost are subsequently measured using the effective interest method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. Financial assets at fair value through other comprehensive income (debt instruments) For debt investments at fair value through other comprehensive income, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in other comprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income is recycled to profit or loss. Financial assets designated at fair value through other comprehensive income (equity investments) Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity investments designated at fair value through other comprehensive income when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in profit or loss when the right of payment has been established, it is probable that the economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in other comprehensive income. Equity investments designated at fair value through other comprehensive income are not subject to impairment assessment. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in profit or loss. This category includes derivative instruments, wealth management products and equity investments which the Group had not irrevocably elected to classify at fair value through other comprehensive income. Dividends on equity investments classified as financial assets at fair value through profit or loss are also recognized as other gains in profit or loss when the right of payment has been established, it is probable that the economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably. A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category. A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative is required to be classified in its entirety as a financial asset at fair value through profit or loss. A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: · the rights to receive cash flows from the asset have expired; or · the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risk and rewards of ownership of the asset. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of the Group’s continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. Impairment of financial assets The Group recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The ECL of December 31, 2019 was estimated based on a range of forecast economic conditions as of that date. Since early January 2020, the coronavirus outbreak has spread across mainland China and beyond, causing disruption to business and economic activity. The impact on GDP and other key indicators have been considered when determining the severity and likelihood of downside economic scenarios that are used to estimate ECL under IFRS 9 in 2020. General approach ECLs are recognized in three stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For those have objective evidence of impairment at the reporting date, lifetime ECL are recognized and interest revenue is calculated on the net carrying amount. At each reporting date, the Group assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the Group compares the risk of a default occurring on the financial instrument as of the reporting date with the risk of a default occurring on the financial instrument as of the date of initial recognition and considers reasonable and supportable information that is available without undue cost or effort, including historical and forward-looking information. The Group considers a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Debt investments at fair value through other comprehensive income and financial assets at amortized cost are subject to impairment under the general approach and they are classified within the following stages for measurement of ECLs except for trade receivables and contract assets which apply the simplified approach as detailed below. Stage 1 - Financial instruments for which credit risk has not increased significantly since initial recognition and for which the loss allowance is measured at an amount equal to 12-month ECLs Stage 2 - Financial instruments for which credit risk has increased significantly since initial recognition but that are not credit-impaired financial assets and for which the loss allowance is measured at an amount equal to lifetime ECLs Stage 3 - Financial assets that are credit-impaired at the reporting date (but that are not purchased or originated credit-impaired) and for which the loss allowance is measured at an amount equal to lifetime ECLs Simplified approach For trade receivables and contract assets that do not contain a significant financing component or when the Group applies the practical expedient of not adjusting the effect of a significant financing component, the Group applies the simplified approach in calculating ECLs. Under the simplified approach, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For trade receivables and contract assets that contain a significant financial component and lease receivables, the Group chooses as its accounting policy to adopt the simplified approach in calculating ECLs with policies as described above. |
Financial liabilities | 2.14 Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, derivative financial instruments and interest-bearing bank and other borrowings. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification as follows: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in profit or loss. The net fair value gain or loss recognized in profit or loss does not include any interest charged on these financial liabilities. Financial liabilities at amortized cost (loans and borrowings) After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost, using the effective interest rate method unless the effect of discounting would be immaterial, in which case they are stated at cost. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in finance costs in profit or loss. Financial liabilities at amortized cost (trade and other payables) These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are subsequently measured at amortized cost using the effective interest method. Financial guarantee contracts Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. A financial guarantee contract is recognized initially as a liability at its fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequent to initial recognition, the Group measures the financial guarantee contracts at the higher of: (i) the ECL allowance determined in accordance with the policy as set out in “Impairment of financial assets”; and (ii) the amount initially recognized less, when appropriate, the cumulative amount of income recognized. Derecognition of financial liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of a new liability, and the difference between the respective carrying amounts is recognized in profit or loss. |
Offsetting financial instruments | 2.15 Offsetting financial instruments Financial assets and liabilities are offset and the net amount is reported in the balance sheet where the Group currently has a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. |
Derivatives | 2.16 Derivatives Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument. The Group’s derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss and are included in other gains/(losses). |
Inventories | 2.17 Inventories Inventories comprise raw materials, work-in-progress, finished goods, spare parts and packaging materials and others, and are stated at the lower of cost and net realizable amount. Cost is determined using the weighted average method. Work-in-progress and finished goods comprise materials, direct labor and an appropriate proportion of all production overhead expenditure (based on the normal operating capacity). Borrowing costs are excluded as the inventory of the Group usually didn’t meet the definition of “qualifying assets”. Provision for impairment of inventories is usually determined by the excess of cost over the net realizable amount and recorded in profit or loss. Net realizable amounts are determined based on the estimated selling price less estimated conversion costs, selling expenses and related taxes in the ordinary course of business. The provision for or the reversal of provision for impairment of inventories is recognized within “Cost of sales” in profit or loss. |
Cash and cash equivalents | 2.18 Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand and demand deposits, and short term highly liquid investments that are readily convertible into known amounts of cash, are subject to an insignificant risk of changes in value, and have a short maturity of generally within three months when acquired, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. |
Borrowing costs | 2.19 Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred. |
Current and deferred income tax | 2.20 Current and deferred income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Current income tax The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. |
Employee benefits | 2.21 Employee benefits Employee benefits mainly include salaries, bonuses, allowances and subsidies, pension insurance, social insurance and housing funds, labor union fees, employees’ education fees and other expenses related to the employees for their services. The Group recognizes employee benefits as liabilities during the accounting period when employees rendered the services and allocates the related cost of assets and expenses based on different beneficiaries. (a) Bonus plans The expected cost of bonus plans is recognized as a liability when the Group has a present legal or constructive obligation as a result of services rendered by employees and a reliable estimate of the obligation can be made. (b) Retirement benefit obligations The Group primarily pays contributions on a monthly basis to participate in a pension plan organized by the relevant municipal and provincial governments in the PRC. In 2020, the Group made monthly contributions at the rate of 16% (2019: 17%) of the qualified employees’ salaries and was exempted after January. The municipal and provincial governments undertake to assume the retirement benefit obligations of all existing and future retired employees payable under these plans. The Group has no legal or constructive obligations for further contributions if the fund does not hold sufficient assets to pay all employees the benefit relating to their current and past services. (c) Other social insurance and housing funds The Group provides other social insurance and housing funds to the qualified employees in the PRC based on certain percentages of their salaries. These percentages are not to exceed the upper limits of the percentages prescribed by the Ministry of Human Resources and Social Security of the PRC. These benefits are paid to social security organizations and the amounts are expensed as incurred. The Group has no legal or constructive obligations for further contributions if the fund does not hold sufficient assets to pay all employees the benefit relating to their current and past services. (d) Termination benefit obligations and early retirement benefit obligations Termination and early retirement benefit obligations are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy and/or early retirement in exchange for these benefits. The Group recognizes termination and early retirement benefit obligations when it is demonstrably committed to either: terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy and/or early retirement. The specific terms vary among the terminated and early retired employees depending on various factors including position, length of service and district of the employees concerned. Benefits falling due for more than 12 months after the end of the reporting period are discounted to their present values. |
Provisions | 2.22 Provisions Provisions for legal claims, asset retirement obligations are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense. |
Revenue recognition | 2.23 Revenue recognition Revenue from contracts with customers Revenue from contracts with customers is recognized when control of goods or services is transferred to the customers at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. When the consideration in a contract includes a variable amount, the amount of consideration is estimated to which the Group will be entitled in exchange for transferring the goods or services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved. When the contract contains a financing component which provides the customer with a significant benefit of financing the transfer of goods or services to the customer for more than one year, revenue is measured at the present value of the amount receivable, discounted using the discount rate that would be reflected in a separate financing transaction between the Group and the customer at contract inception. When the contract contains a financing component which provides the Group a significant financial benefit for more than one year, revenue recognized under the contract includes the interest expense accreted on the contract liability under the effective interest method. For a contract where the period between the payment by the customer and the transfer of the promised goods or services is one year or less, the transaction price is not adjusted for the effects of a significant financing component, using the practical expedient in IFRS 15. (a) Sale of industrial products Revenue from the sale of industrial products (including sales of scrap and other materials) is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the industrial products. (b) Rendering of services The Group provides transportation and other service and the revenue from services is recognized over time, using an input method to measure progress towards complete satisfaction of the service, because the customer simultaneously receives and consumes the benefits provided by the Group. Revenue from other sources Rental income Rental income is recognized on a time proportion basis over the lease terms. Variable lease payments that do not depend on an index or a rate are recognized as income in the accounting period in which they are incurred. Other income Interest income is recognized on an accrual basis using the effective interest method by applying the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, when appropriate, to the net carrying amount of the financial asset. Dividend income is recognized when the shareholders’ right to receive payment has been established, it is probable that the economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably. |
Earning per share | 2.24 Earning per share (a) Basic earnings per share Basic earnings per share is calculated by dividing: · the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares; · by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. (b) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: · the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and · the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. |
Leases | 2.25 Leases Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: · fixed payments (including in-substance fixed payments), less any lease incentives receivable; · variable lease payment that are based on an index or a rate, initially measured using the index or rate as of the commencement date; · amounts expected to be payable by the Group under residual value guarantees; · the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and · payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. To determine the incremental borrowing rate, the Group: · where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received; · uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the Group, which does not have recent third-party financing, and, · makes adjustments specific to the lease, such as term, country, currency and security. If a readily observable amortizing loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the Group entities use that rate as a starting point to determine the incremental borrowing rate. The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: · the amount of the initial measurement of lease liability; · any lease payments made at or before the commencement date less any lease incentives received; · any initial direct costs, and · restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis as follows: Buildings 2 – 20 years Machinery 2 – 10 years Land use rights 10 – 50 years If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. While the Group revalues its land and buildings that are presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by the Group. Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (that is those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the recognition exemption for leases of low-value assets to leases of office equipment that are considered to be of low value (i.e. below RMB30,000). Lease income from operating leases where the Group is a lessor is recognized in income on a straight-line basis over the lease term (Note 8). Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the balance sheet based on their nature. The Group did not need to make any adjustments to the accounting for assets held as lessor as a result of adopting the new leasing standard. |
Dividend distribution | 2.26 Dividend distribution Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period. |
Government grants | 2.27 Government grants Government grants are recognized at their fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the costs, which it is intended to compensate, are expensed. Asset-related government grants are recognized when the government document designates that the government grants are used for constructing or forming long-term assets. If the government document is inexplicit, the Group should make a judgement based on the basic conditions to obtain the government grants, and recognizes them as asset-related government grants if the conditions are to construct or to form long-term assets. Otherwise, the government grants should be income-related. For asset-related government grants that is related to long lived assets that already exist at the time of recognizing the government grant, the grant is deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense. If the asset is not yet purchased or constructed at the time of recognizing the government grant, the grant is recognized as deferred income and will be deducted from the cost of the asset once the asset is recognized. Income-related government grants that are specific to compensate expenses or costs that have already incurred, they are directly recognized in profit or loss for the current period as deduction of the related expenses or costs. If the income-related government grants are specific to compensate future expenses or costs of the Group, they are recognized as deferred income and will be released to profit or loss when the related expenses or costs are incurred. |
GENERAL INFORMATION (Tables)
GENERAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GENERAL INFORMATION | |
Schedule of company's principal subsidiaries | Particulars of the Company’s principal subsidiaries are as follows: Percentage of equity Place of attributable to registration and Registered the Company Name business capital Principal activities Direct Indirect Shanxi Huaxing Aluminum Co. Ltd. (“Shanxi Huaxing”) (山西華興鋁業有限公司) PRC/Mainland China 1,850,000 Manufacture and distribution of alumina 60.00 % 40.00 % Baotou Aluminum Co., Ltd. (“Baotou Aluminum“) (包頭鋁業有限公司) PRC/Mainland China 2,245,510 Manufacture and distribution of primary aluminum, aluminum alloy and related fabricated products and carbon products 100.00 % — China Aluminum International Trading Co., Ltd. (“Chalco Trading”) (中鋁國際貿易有限公司) PRC/Mainland China 1,731,111 Import and export activities 100.00 % — Chalco Shanxi New Material Co., Ltd. (“Shanxi New Material”) (中鋁山西新材料有限公司) PRC/Mainland China 4,279,601 Manufacture and distribution of alumina, primary aluminum and anode carbon products and electricity generation and supply 85.98 % — China Aluminum International Trading Group Co., Ltd. (“Trading Group”) (中鋁國際貿易集團有限公司) PRC/Mainland China 1,030,000 Import and export activities 100.00 % — Zunyi Aluminum Co., Ltd. (遵義鋁業股份有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum and alumina 67.45 % — Chalco Hong Kong Ltd. (“Chalco Hong Kong”) (中國鋁業香港有限公司) Hong Kong HKD849,940 in thousand Overseas investments and alumina import and export activities, and mining and distribution of bauxite. 100.00 % — Chalco Mining Co., Ltd. (“Chalco Mining“) (中鋁礦業有限公司) PRC/Mainland China 4,028,859 Manufacture, acquisition and distribution of bauxite mines, limestone ore and alumina 100.00 % — Chalco Energy Co., Ltd. (中鋁能源有限公司) PRC/Mainland China 1,384,398 Thermoelectric supply and investment management 100.00 % — China Aluminum Ningxia Energy Group Co., Ltd. (“Ningxia Energy“) (中鋁寧夏能源集團) PRC/Mainland China 5,025,800 Thermal power, wind power and solar power generation, coal mining, and power-related equipment manufacturing 70.82 % — Guizhou Huajin Aluminum Co., Ltd. (“Guizhou Huajin“) (貴州華錦鋁業有限公司) PRC/Mainland China 1,000,000 Manufacture and distribution of alumina 60.00 % — Percentage of equity Place of attributable to registration and Registered the Company Name business capital Principal activities Direct Indirect Chalco Zhengzhou Research Institute of Non-ferrous Metal Co., Ltd. (中國鋁業鄭州有色金屬研究院有限公司) PRC/Mainland China Research and development services 100.00 % — Chalco Shandong Co., Ltd. ("Chalco Shandong“) (中鋁山東有限公司) PRC/Mainland China Manufacture and distribution of alumina 100.00 % — Chalco Zhongzhou Aluminum Co., Ltd. ("Zhongzhou Aluminum“) (中鋁中州鋁業有限公司) PRC/Mainland China Manufacture and distribution of alumina 100.00 % — China Aluminum Logistics Group Corporation Co., Ltd. (中鋁物流集團有限公司) PRC/Mainland China Logistics and transportation 100.00 % — Chinalco Shanxi Jiaokou Xinghua Technology Ltd. (“Xinghua Technology“) (中鋁集團山西交口興華科技股份有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum 33.00 % 33.00 % Chinalco Shanghai Company Limited (“Chinalco Shanghai“) (中鋁(上海)有限公司) PRC/Mainland China Trading and engineering project management and leasing 100.00 % — Shanxi China Huarun Co., Ltd. (“Shanxi Huarun”) (山西中鋁華潤有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum 40.00 % — Guizhou Huaren New Material Co., Ltd. (“Guizhou Huaren”) (貴州華仁新材料有限公司) PRC/Mainland China Manufacture and distribution of primary aluminum 40.00 % — Chinalco Materials Co., Ltd. (中鋁物資有限公司) PRC/Mainland China Import and export activities and trading 100.00 % — |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of property, plant and equipment | Buildings 8 – 45 years Machinery 3 – 30 years Transportation facilities 6 – 10 years Office and other equipment 3 – 10 years |
Schedule of estimated useful lives of investment properties | Buildings 50 years Land use rights 40 – 70 years |
Schedule of estimated useful lives of right-of-use assets | Buildings 2 – 20 years Machinery 2 – 10 years Land use rights 10 – 50 years |
SIGNIFICANT ACCOUNTING JUDGEM_2
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES | |
Schedule of key macroeconomic parameters for estimation of expected credit losses | Year Scenarios Items Basic Negative Positive Growth rate of gross GDP growth rate 8.83 % 8.39 % 9.27 % 2022 and subsequent years 5.30 % 5.04 % 5.57 % Consumer Price Index Growth Rate 1.33 % 1.26 % 1.40 % 2022 and subsequent years 2.40 % 2.28 % 2.52 % |
REVENUE AND SEGMENT INFORMATI_2
REVENUE AND SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE AND SEGMENT INFORMATION | |
Schedule of revenue recognized during the years | For the year ended December 31 (Restated) (Restated) Revenue from contracts with customers (net of value-added tax) Sale of goods 179,785,704 188,752,179 184,077,018 Rendering of services 325,055 1,145,304 1,587,246 180,110,759 189,897,483 185,664,264 Revenue from other sources Rental income 240,153 317,915 329,989 180,350,912 190,215,398 185,994,253 |
Schedule of disaggregated revenue information | For the year ended December 31, 2020 Corporate Primary and other Alumina Aluminum Energy operating Inter-segment segment segment Segment Trading segments elimination Total Type of goods or services Sales of goods 42,295,806 51,729,483 7,184,216 151,540,471 449,058 (69,122,016) 184,077,018 Rendering of services — — — 3,768,342 — (2,181,096) 1,587,246 Total revenue 42,295,806 51,729,483 7,184,216 155,308,813 449,058 (71,303,112) 185,664,264 Geographical markets Mainland China 42,295,806 51,729,483 7,184,216 146,666,981 449,058 (71,303,112) 177,022,432 Outside of mainland China — — — 8,641,832 — — 8,641,832 Total revenue from contracts with customers 42,295,806 51,729,483 7,184,216 155,308,813 449,058 (71,303,112) 185,664,264 Timing of revenue recognition Goods transferred at a point in time 42,295,806 51,729,483 7,184,216 151,540,471 449,058 (69,122,016) 184,077,018 Services transferred over time — — — 3,768,342 — (2,181,096) 1,587,246 Total revenue from contracts with customers 42,295,806 51,729,483 7,184,216 155,308,813 449,058 (71,303,112) 185,664,264 The following table shows the amounts of revenue recognized in the current reporting period that were included in the contract liabilities at the beginning of the reporting period: For the year ended December 31, 2019 (Restated) Corporate Primary and other Inter- Alumina Aluminum Energy operating segment segment segment Segment Trading segments elimination Total Type of goods or services Sales of goods 43,690,995 49,043,864 7,335,347 156,158,740 492,624 (67,969,391) 188,752,179 Rendering of services — — — 2,724,083 — (1,578,779) 1,145,304 Total revenue 43,690,995 49,043,864 7,335,347 158,882,823 492,624 (69,548,170) 189,897,483 Geographical markets Mainland China 43,690,995 49,043,864 7,335,347 153,106,808 492,624 (69,548,170) 184,121,468 Outside of mainland China — — — 5,776,015 — — 5,776,015 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,882,823 492,624 (69,548,170) 189,897,483 Timing of revenue recognition Goods transferred at a point in time 43,690,995 49,043,864 7,335,347 156,158,740 492,624 (67,969,391) 188,752,179 Services transferred over time — — — 2,724,083 — (1,578,779) 1,145,304 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,882,823 492,624 (69,548,170) 189,897,483 |
Schedule of revenue that was included in contract liabilities at beginning of period | Revenue recognized that was included in contract liabilities at the beginning of the reporting period: – Sale of goods 1,543,164 1,565,285 – Others 36,158 73,541 1,579,322 1,638,826 |
Schedule of performance obligations | The performance obligation is satisfied over time as services are rendered and payment is generally due upon completion of the relevant services. Amounts expected to be recognized as revenue for remaining contract performance obligation: For the year ended December 31 Within one year 1,638,826 1,399,340 After one year 125,758 182,859 1,764,584 1,582,199 |
Schedule of operating segments | Prepaid current income tax and deferred tax assets are excluded from segment assets, and income tax payable and deferred tax liabilities are excluded from segment liabilities. All sales among the reportable operating segments were conducted on terms mutually agreed among group companies, and have been eliminated upon consolidation. Year ended December 31, 2020 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments elimination Total Total revenue 42,382,097 51,889,084 7,184,216 155,392,357 449,611 (71,303,112) 185,994,253 Inter-segment revenue (29,436,854) (11,458,500) (243,788) (30,058,138) (105,832) 71,303,112 — Sales of self-produced products (Note (i)) — — — 21,492,083 — — — Sales of products sourced from external suppliers — — — 103,842,136 — — — Revenue from external customers 12,945,243 40,430,584 6,940,428 125,334,219 343,779 — 185,994,253 Segment profit/(loss) before income tax 1,427,294 2,023,168 (77,235) 555,864 (1,705,175) (68,699) 2,155,217 Income tax expense (582,188) Profit for the year 1,573,029 Other items Finance income 42,912 58,437 36,333 72,632 16,607 — 226,921 Finance costs (826,521) (1,364,606) (995,572) (170,937) (1,062,892) — (4,420,528) Share of profits and losses of joint ventures 75,405 - 35,308 5,011 64,778 — 180,502 Share of profits and losses of associates 4,930 (35,328) (17,905) 38,683 155,357 — 145,737 Depreciation of right-of-use assets (364,655) (234,387) (96,967) (21,075) (50,469) — (767,553) Depreciation and amortization (excluding the depreciation of right- of-use assets) (2,934,949) (2,937,761) (1,943,524) (23,287) (71,281) — (7,910,802) (Losses)/gain on disposal of property, plant and equipment (15,274) 456,925 3,989 2,147 652 — 448,439 Realized loss on futures, forward and option contracts, net — — — 675,442 (152,064) — 523,378 Other income 21,549 11,087 55,561 33,207 18,147 — 139,551 Impairment loss on property, plant and equipment (23,135) (388,755) — (4,951) — — (416,841) Unrealized (losses)/gains on futures contracts,net — — — (27,705) 17,311 — (10,394) Gain on disposal of subsidiaries — — — — 11,305 — 11,305 Changes for impairment of inventories (121,286) 103,524 (15,642) 2,184 981 — (30,239) Provision for impairment of receivables (58,778) (14,417) (108,059) (414,342) (383,238) — (978,834) Dividends from other financial assets measured at fair value — — — — 82,794 — 82,794 Investments in associates 88,356 539,058 396,454 1,565,235 6,584,307 — 9,173,410 Investments in joint ventures 1,076,085 — 334,763 43,258 1,920,447 — 3,374,553 Additions during the year: Intangible assets 2,157 3,546 — 1,413 266 — 7,382 Right-of-use assets 12,001 — 59,010 2,875 2,893 — 76,779 Property, plant and equipment (Note (ii)) 2,317,271 1,069,086 881,810 328,033 25,119 — 4,621,319 (i) (ii) Year ended December 31, 2019 (Restated) Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments elimination Total Total revenue 43,899,982 49,089,019 7,345,971 158,935,656 492,940 (69,548,170) 190,215,398 Inter-segment revenue (29,573,401) (11,694,382) (236,136) (27,877,188) (167,063) 69,548,170 — Sales of self-produced products (Note (i)) — — — 24,380,771 — — — Sales of products sourced from external suppliers — — — 106,677,697 — — — Revenue from external customers 14,326,581 37,394,637 7,109,835 131,058,468 325,877 — 190,215,398 Segment profit/(loss) before income tax 844,848 687,246 403,479 958,007 (987,704) 213,085 2,118,961 Income tax expense — — — — — — (628,376) Profit for the year 1,490,585 Other items Finance income 61,644 53,252 35,093 105,664 5,540 — 261,193 Finance costs (651,238) (1,328,730) (1,064,769) (224,292) (1,652,512) — (4,921,541) Share of profits and losses of joint ventures 86,245 — (22,272) 3,767 202,375 — 270,115 Share of profits and losses of associates (6,319) 11,621 (32,660) 36,579 39,546 — 48,767 Depreciation of right-of-use assets (495,693) (338,975) (146,139) (45,541) (49,477) — (1,075,825) Depreciation and amortization (excluding the depreciation of right-of-use assets) (2,830,153) (3,235,356) (1,488,077) (79,365) (81,467) — (7,714,418) (Losses)/gains on disposal of property, plant and equipment and intangible assets (576,669) 833,288 (3,982) 7,271 (224) — 259,684 Realized gain on futures, forward and option contracts, net — — 60,671 — — — 60,671 Other income 21,252 716 11,382 47,666 3,595 — 84,611 Impairment on property, plant and equipment (8,742) (247,112) — (3,500) — — (259,354) Unrealized gain on futures, forward and option contracts,net — — — (9,851) — — (9,851) Gain on disposal of subsidiaries 118 — 3,014 2,738 255,317 — 261,187 Changes for impairment of inventories 69,740 166,331 34,136 (19,076) — — 251,131 Reversal of/(provision for) impairment of receivables, net of bad debts recovered 6,837 1,088 (53,227) (122,420) (3,294) — (171,016) Dividends from other financial assets measured at fair value — — 1,000 — 96,775 — 97,775 Investments in associates 83,424 574,385 362,757 2,021,964 6,469,871 — 9,512,401 Investments in joint ventures 1,076,085 — 79,199 298,991 1,931,307 — 3,385,582 Additions during the year: Intangible assets 209,366 949,013 (5,062) 1,869 200 — 1,155,386 Right-of-use assets 1,080,285 131,797 8,411 27,365 — — 1,247,858 Property, plant and equipment (Note (ii)) 6,490,041 2,381,644 1,454,659 132,841 165,832 — 10,625,017 (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB13,330 million, sales of self-produced primary aluminum amounting to RMB10,689 million, and sales of self-produced other products amounting to RMB362 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts are not included. Year ended December 31, 2018 (Restated) Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments elimination Total Total revenue 44,150,937 53,802,172 7,235,273 142,532,936 667,235 (68,037,641) 180,350,912 Inter-segment revenue (29,392,495) (12,457,863) (198,337) (25,775,920) (213,026) 68,037,641 — Sales of self-produced products (Note (i)) — — — 34,564,441 — — — Sales of products sourced from external suppliers — — — 82,192,575 — — — Revenue from external customers 14,758,442 41,344,309 7,036,936 116,757,016 454,209 — 180,350,912 Segment profit /(loss) before income tax 3,496,381 (929,298) 26,020 748,495 (1,267,146) 198,103 2,272,555 Income tax expense — — — — — — (826,366) Profit for the year 1,446,189 Year ended December 31, 2018 (Restated) Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments elimination Total Other items Finance income 100,125 54,458 15,744 136,603 185,392 — 492,322 Finance costs (399,344) (1,131,622) (1,047,285) (367,003) (1,937,438) — (4,882,692) Share of profits and losses of joint ventures 37,377 8 (225,377) 9,010 (20,470) — (199,452) Share of profits and losses of associates (1,141) 17,102 (52,368) 19,375 56,367 — 39,335 Depreciation of right-of-use assets (39,027) (41,175) (9,335) (18,615) — — (108,152) Depreciation and amortization (excluding the depreciation of right-of-use assets) (2,846,051) (2,954,801) (1,962,081) (108,069) (82,963) — (7,953,965) Gains /(losses) on disposal of property, plant and equipment and intangible assets 53,116 15,211 24,780 20,036 (12,045) — 101,098 Realized gain on futures, forward and option contracts, net (716) — 2,855 47,601 (9,248) — 40,492 Other income 57,777 38,220 29,858 6,718 2,794 — 135,367 Impairment on property, plant and equipment — — (7,450) (39,034) — — (46,484) Unrealized gain on futures, forward and option contracts, net — — — 100,967 — — 100,967 Gain on disposal of subsidiaries 7,671 — — — (4,154) — 3,517 Changes for impairment of inventories (54,463) (273,796) (7,884) (17,802) — — (353,945) Reversal of/(provision for) impairment of receivables, net of bad debts recovered 19,320 (9,406) (23,327) (84,922) (9,621) — (107,956) Dividends from other financial assets measured at fair value — — 1,000 — 108,914 — 109,914 Loss on disposal of associates — — (1,904) — — — (1,904) (Losses)/gain on previously held equity interest remeasured at an acquisition-date fair value — — (3,177) — 751,263 — 748,086 Investments in associates 89,734 558,759 2,064,425 131,691 3,518,853 — 6,363,462 Investments in joint ventures 989,840 — 435,867 77,211 1,890,431 — 3,393,349 Additions during the year: Intangible assets 99,089 753 2,754 514 194 — 103,304 Right-of-use assets 2,786 — — 52 — — 2,838 Property, plant and equipment (Note (ii)) 2,564,003 4,602,580 1,610,442 102,956 143,839 — 9,023,820 (i) (ii) As of December 31, 2020 Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As of December 31, 2020 Segment assets 62,050,175 39,671,083 20,520,759 44,594,935 254,246,772 Reconciliation: Elimination of inter-segment receivables (60,582,399) Other eliminations (360,498) Corporate and other Unallocated assets: — Deferred tax assets 1,481,235 Prepaid income tax 116,574 Total assets 194,901,684 Segment liabilities 39,204,713 26,197,235 12,815,610 55,475,215 182,576,225 Elimination of inter-segment payables (60,582,397) Corporate and other Unallocated liabilities: — Deferred tax liabilities 1,437,087 Income tax payable 299,053 Total liabilities 123,729,968 As of December 31, 2019 (Restated) Corporate and other Primary operating Alumina aluminum Energy Trading segments Total Segment assets 63,155,573 38,886,172 17,496,224 49,658,116 259,780,250 Reconciliation: — Elimination of inter-segment receivables (58,151,596) Other eliminations (106,985) Corporate and other unallocated assets: — Deferred tax assets 1,522,729 Prepaid income tax 93,093 Total assets 203,137,491 Segment liabilities 38,588,473 26,582,436 9,376,820 66,771,364 188,566,428 Elimination of inter-segment payables (58,151,596) Corporate and other unallocated liabilities: — Deferred tax liabilities 1,712,739 Income tax payable 252,454 Total liabilities 132,380,025 |
Schedule of geographical information of the operating segments | For the year ended December 31 (Restated) (Restated) Segment revenue from external customers – Mainland China 171,134,353 184,439,383 177,352,421 – Outside of Mainland China 9,216,559 5,776,015 8,641,832 180,350,912 190,215,398 185,994,253 December 31, December 31, (Restated) Non-current assets (excluding financial assets and deferred tax assets) – Mainland China 147,876,838 142,671,962 – Outside of Mainland China 2,668,533 2,890,338 150,545,371 145,562,300 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Mineral Mining exploration Goodwill rights rights Others Total Year ended December 31, 2020 Opening net carrying amount 3,510,892 7,972,911 1,001,332 1,279,325 13,764,460 Additions — — — 7,382 7,382 Disposals — (277,715) — — (277,715) Impairment — — — (416) (416) Amortization — (412,599) — (46,883) (459,482) Business combination — — — 89 89 Transfer from property, plant and equipment (Note 7) — 149,544 — 284,743 434,287 Currency translation differences (1,035) (6,308) (12,958) — (20,301) Closing net carrying amount 3,509,857 7,425,833 988,374 1,524,240 13,448,304 As of December 31, 2020 Cost 3,509,857 9,876,722 988,374 1,932,329 16,307,282 Accumulated amortization and impairment — (2,450,889) — (408,089) (2,858,978) Net carrying amount 3,509,857 7,425,833 988,374 1,524,240 13,448,304 Mining Mineral rights and exploration Goodwill others rights Others Total Year ended December 31, 2019 (Restated) Opening net carrying amount 3,510,633 7,682,383 1,113,959 572,390 12,879,365 Additions — 467,640 — 687,746 1,155,386 Reclassification — 115,871 (115,871) — — Disposals — — — (9) (9) Amortization — (294,766) — (44,172) (338,938) Transfer from property, plant and equipment (Note 7) — — — 63,370 63,370 Currency translation differences 259 1,783 3,244 — 5,286 Closing net carrying amount 3,510,892 7,972,911 1,001,332 1,279,325 13,764,460 As of December 31, 2019 Cost 3,510,892 10,016,634 1,001,332 1,640,081 16,168,939 Accumulated amortization and impairment — (2,043,723) — (360,756) (2,404,479) Net carrying amount 3,510,892 7,972,911 1,001,332 1,279,325 13,764,460 |
Schedule of amortisation expenses of intangible assets recognized in profit or loss | For the year ended December 31 (Restated) (Restated) Cost of sales 265,108 294,766 371,616 General and administrative expenses 30,793 44,172 87,866 295,901 338,938 459,482 |
Schedule of summary of goodwill allocated to each segment | December 31, 2020 December 31, 2019 Alumina Primary aluminum Alumina Primary aluminum Qinghai Branch — 217,267 — 217,267 Guangxi Branch 189,419 — 189,419 — Lanzhou Aluminum Co,. Ltd — 1,924,259 — 1,924,259 PT. Nusapati Prima (“PTNP“) 14,963 — 15,998 — Shanxi Huaxing 1,163,949 — 1,163,949 — 1,368,331 2,141,526 1,369,366 2,141,526 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total Year ended December 31, 2020 Opening net carrying amount at 1 Jan 2020 (Restated) 40,777,331 49,487,287 429,581 354,825 12,359,952 103,408,976 Reclassifications and internal transfers 3,301,076 7,114,160 809,433 47,546 (11,272,215) — Transfer to intangible assets (Note 6) — — — — (434,287) (434,287) Transfer from right-of-use assets and non-current assets* — 1,982,812 — — — 1,982,812 Transfer to investment properties (Note 8) (78,135) — — — — (78,135) Transfer to other non-current assets — — — — (38,430) (38,430) Transfer to right-of-use assets (Note 20) (140,254) — — — (744,887) (885,141) Additions 296,395 182,427 48,607 10,659 4,083,231 4,621,319 Business combination 1,290 52,357 (18) (28) — 53,601 Government grants (1,646) (40,676) — — — (42,322) Disposals (120,386) (173,789) (27,145) (918) (58,659) (380,897) Depreciation (1,689,768) (5,315,869) (96,999) (49,534) — (7,152,170) Impairment loss (80,641) (326,444) (125) (558) (9,073) (416,841) Currency translation differences (103) (183) (27) (19) — (332) Closing net carrying amount 42,265,159 52,962,082 1,163,307 361,973 3,885,632 100,638,153 As of December 31, 2020 Cost 63,188,254 114,359,882 2,844,604 869,252 4,005,995 185,267,987 Accumulated depreciation and impairment (20,923,095) (61,397,800) (1,681,297) (507,279) (120,363) (84,629,834) Net carrying amount 42,265,159 52,962,082 1,163,307 361,973 3,885,632 100,638,153 * Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total As of December 31, 2019 (Restated) Opening net carrying amount 38,748,649 47,847,491 537,300 159,291 12,315,564 99,608,295 Reclassifications and internal transfers 3,869,147 5,125,998 (29,181) 207,546 (9,173,510) — Government grants (7,211) (69,012) — — — (76,223) Transfer to right-of-use assets (107,368) (495) — — — (107,863) Transfer to intangible assets (Note 6) — — — — (63,370) (63,370) Transfer to investment properties (Note 8) (179,564) — — — — (179,564) Transfer from right-of-use assets — 1,674,260 — — — 1,674,260 Additions 576,107 636,555 47,527 12,944 9,351,884 10,625,017 Disposal of subsidiaries (85,851) (73,432) (3,270) (239) — (162,792) Disposals (79,280) (378,817) (19,672) (939) (70,201) (548,909) Depreciation (1,852,041) (5,121,970) (103,126) (23,639) — (7,100,776) Impairment losses (105,346) (153,394) (14) (185) (415) (259,354) Currency translation differences 89 103 17 46 — 255 Closing net carrying amount 40,777,331 49,487,287 429,581 354,825 12,359,952 103,408,976 As of December 31, 2019 Cost 60,216,498 101,630,516 2,284,564 830,866 12,511,787 177,474,231 Accumulated depreciation and impairment (19,439,167) (52,143,229) (1,854,983) (476,041) (151,835) (74,065,255) Net carrying amount 40,777,331 49,487,287 429,581 354,825 12,359,952 103,408,976 |
Schedule of depreciation expenses recognized in profit or loss | For the year ended December 31 (Restated) (Restated) Cost of sales 7,296,290 6,930,180 6,991,119 General and administrative expenses 202,792 163,989 155,916 Selling and distribution expenses 6,605 6,607 5,135 7,505,687 7,100,776 7,152,170 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT PROPERTIES | |
Schedule of net carrying amount of investment properties | Buildings Land use rights Total Year ended December 31, 2020 Opening net carrying amount 414,168 1,089,098 1,503,266 Additions — — — Transfer from property, plant and equipment (Note 7) 78,135 — 78,135 Transfer from right-of-use assets (Note 20) — 45,885 45,885 Disposals — (1,005) (1,005) Depreciation (10,814) (13,591) (24,405) Closing net carrying amount 481,489 1,120,387 1,601,876 As of December 31, 2020 Cost 601,850 1,221,710 1,823,560 Accumulated depreciation and impairment (120,361) (101,323) (221,684) Net carrying amount 481,489 1,120,387 1,601,876 Buildings Land use right Total Year ended December 31, 2019 Opening net carrying amount 235,974 920,032 1,156,006 Additions 44,063 — 44,063 Transfer from property, plant and equipment (Note 7) 179,564 — 179,564 Transfer from right-of-use assets (Note 20) — 239,765 239,765 Disposal (36,949) (52,537) (89,486) Depreciation (8,484) (18,075) (26,559) Impairment loss — (87) (87) Closing net carrying amount 414,168 1,089,098 1,503,266 As of December 31, 2019 Cost 508,705 1,159,343 1,668,048 Accumulated depreciation and impairment (94,537) (70,245) (164,782) Net carrying amount 414,168 1,089,098 1,503,266 |
INVESTMENTS IN JOINT VENTURES_2
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of information about joint venture | Effective equity Place of Registered interest held establishment and paid-in Principal Ownership Voting Profit Name and operation capital activities interest power sharing Guangxi Huayin Aluminum Co., Ltd. *(“Guangxi Huayin”) (廣西華銀鋁業有限公司) PRC/ 2,441,987 Manufacturing 33 % 33 % 33 % * Guangxi Huayin, which is considered a material joint venture of the Group, is accounted for using the equity method. |
Schedule of summarized financial information joint venture | December 31, 2020 December 31, 2019 Cash and cash equivalents 247,680 261,447 Other current assets 970,096 1,222,290 Current assets 1,217,776 1,483,737 Non-current assets 5,361,592 5,249,101 Financial liabilities 750,000 1,106,593 Other current liabilities 772,700 960,077 Current liabilities 1,522,700 2,066,670 Non-current liabilities 580,419 414,299 Net assets 4,476,249 4,251,869 Reconciliation to the Group’s interest in the joint venture: Proportion of the Group’s ownership 33.00 % 33.00 % Group’s share of net assets of the joint venture 1,477,162 1,403,117 Carrying amount of the investment 1,477,162 1,403,117 For the year ended December 31 Revenue 5,173,801 5,226,893 4,631,737 Gross profit 979,991 1,303,254 800,965 Interest income 6,365 9,781 7,388 Depreciation and amortization 509,556 525,109 531,512 Interest expenses 77,438 63,351 51,855 Profit before income tax 504,875 621,315 195,189 Income tax 78,827 79,300 21,152 Other comprehensive income — — — Total comprehensive income for the year 426,048 542,015 174,037 Dividend received 132,000 198,000 99,000 |
Schedule of information about associate | As of December 31, 2020, particulars of the Group’s material associate is as follows: Place of Effective equity interest held establishment and Registered and Principal Ownership Voting Profit Name operation paid-in capital activities interest power sharing Yunnan Aluminum PRC/Mainland China 3,128,207 Manufacturing 10.04 % 10.04 % 10.04 % |
Schedule of summarized financial information associates | December 31, 2020 December 31, 2019 Cash and cash equivalents 1,186,778 4,052,271 Other current assets 4,848,942 5,081,477 Current assets 6,035,720 9,133,748 Non-current assets 39,960,249 35,706,818 Financial liabilities 5,632,439 8,502,318 Other current liabilities 11,728,170 12,012,348 Current liabilities 17,360,609 20,514,666 Non-current liabilities 10,658,126 7,254,037 Net assets 17,977,234 17,071,863 Non-controlling interests 2,504,346 2,213,934 Reconciliation to the Group’s interest in the associate: Proportion of the Group’s ownership 10.04 % 10.04 % Group’s share of net assets of the associate 1,553,478 1,491,736 Carrying amount of the investment 1,553,478 1,491,736 For the year ended December 31 Revenue 24,283,623 29,567,864 Gross profit 3,241,005 4,084,535 Interest income 46,865 35,345 Depreciation and amortization 1,381,066 1,571,308 Interest expenses 945,786 649,600 Profit before income tax 596,546 1,032,497 Income tax 51,340 122,384 Other comprehensive income 28,183 (36,602) Total comprehensive income for the year 573,389 873,511 Dividend received — — |
Associates | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of movements in investments | December 31, 2020 December 31, 2019 As of January 1 9,512,401 6,363,462 Investment to Yunnan Aluminum — 1,491,736 Investment to Heqing Yixin Aluminum Industry Co.,Ltd. (鶴慶溢鑫鋁業有限公司) (“Yixin Aluminum”) — 941,160 Capital injections, other than to Yunnan Aluminum and Yixin Aluminum — 729,368 Subsidiaries changed into associates 7,473 16,283 Capital reduction (14,850) (20,250) Share of profits for the year 145,737 48,767 Dividends declared (480,397) (50,314) Share of changes in reserves 3,046 (7,811) As of December 31 9,173,410 9,512,401 |
Schedule of summarized financial information associates | December 31, 2020 December 31, 2019 (Restated) Share of the associates’ profits 83,518 48,767 Share of the associates’ total comprehensive income 83,518 48,767 Aggregate carrying amount of the Group’s investments in the associates 7,619,932 8,020,665 |
Joint venture | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of movements in investments | As of January 1 3,385,582 3,393,349 Capital injections 4,333 50,000 Disposal — (114,604) Share of profits for the year 180,502 270,115 Share of changes in reserves 1,491 8,746 Dividends declared (197,355) (222,024) Impairment — — As of December 31 3,374,553 3,385,582 |
Schedule of summarized financial information joint venture | Share of the joint ventures’ profits for the year 121,120 91,250 Share of the joint ventures’ total comprehensive income 121,120 91,250 Aggregate carrying amount of the Group’s investments in joint ventures 1,897,391 1,870,538 |
OTHER FINANCIAL ASSETS MEASUR_2
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE | |
Schedule of equity investments designated at fair value through other comprehensive income/available-for-sale financial investments | December 31, 2020 December 31, 2019 Listed equity investments, at fair value Dongxing securities Co., Ltd.(東興證券股份有限公司) 8,812 8,853 Unlisted equity investments, at fair value Sanmenxia Dachang Mining Co., Ltd.(三門峽達昌礦業有限公司) 20,921 20,905 Inner Mongolia Ganqimaodu Port Development Co., Ltd.(內蒙古甘其毛都港務發展股份有限公司) 16,669 30,410 Yinchuan Economic and Technological Development Zone Investment Holding Co., Ltd. (銀川經濟技術開發區投資控股有限公司) 17,234 20,000 China Color International Alumina Development Co., Ltd.(中色國際氧化鋁開發有限公司) 6,636 6,614 Luoyang Jianyuan Mining Co., Ltd. (洛陽建元礦業有限公司) 4,975 4,960 NingXia Electric Power Trading Center Co., Ltd(寧夏電力交易中心有限公司) 4,305 - Ningxia Ningdian Logistics Transportation Co., Ltd.(寧夏寧電物流運輸有限公司) 1,640 1,640 Chinalco Innovative Development Investment Company Limited (“Chinalco Innovative”) (中鋁創新開發投資有限公司) 329,234 365,681 Size Industry Investment Fund (Note) 980,498 1,653,251 Fangchenggang Chisha Pier Co., Ltd.(防城港赤沙碼頭有限公司) 700 700 Xingxian Shengxing Highway Investment Management Co., Ltd. (興縣盛興公路投資管理有限公司) 135,079 126,237 1,517,891 2,230,398 1,526,703 2,239,251 |
DEFERRED TAX (Tables)
DEFERRED TAX (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEFERRED TAX | |
Schedule of movements in deferred tax assets and deferred tax liabilities | Provision Accrued Unrealized profit at for impairment expenses Tax losses consolidation Others Total As of December 31,2018 385,843 242,370 616,237 169,876 182,370 1,596,696 Business combination under common control 71 270 — — 5 346 As of January 1, 2019 (Restated) 385,914 242,640 616,237 169,876 182,375 1,597,042 Acquisition of subsidiaries 190 (31) — — 7 166 Credit/(charged) to profit or loss 59,218 (33,214) (40,047) (521) (2,955) (17,519) As of December 31, 2019 445,322 209,395 576,190 169,355 179,427 1,579,689 As of January 1, 2020 445,322 209,395 576,190 169,355 179,427 1,579,689 Acquisition of subsidiaries — — — — 36 36 Credit/(charged) to profit or loss 65,196 (99,810) (105,811) 56,731 51,116 (32,578) As of December 31, 2020 510,518 109,585 470,379 226,086 230,579 1,547,147 Movements in deferred tax liabilities: Fair value Fair value Depreciation adjustments arising Interest changes of and from acquisition of capitalization financial assets amortization subsidiaries total As of January 1, 2019 43,832 5,606 32,489 1,784,919 1,866,846 Exchange realignment — — — 416 416 Credited to other comprehensive income — 14,642 — — 14,642 Charged to profit or loss (5,825) (12,517) (8,616) (85,247) (112,205) As of December 31, 2019 38,007 7,731 23,873 1,700,088 1,769,699 As of January 1, 2020 38,007 7,731 23,873 1,700,088 1,769,699 Exchange realignment — — — (1,406) (1,406) Charged to other comprehensive income — (3,066) — — (3,066) Acquisition of subsidiaries — — — 1,274 1,274 Credited/(charged) to profit or loss (12,167) 4,235 13,234 (268,804) (263,502) As of December 31, 2020 25,840 8,900 37,107 1,431,152 1,502,999 |
Schedule of analysis of the deferred tax balances of the Group for financial reporting purposes | December 31, December 31, (Restated) Net deferred tax assets 1,481,235 1,522,729 Net deferred tax liabilities 1,437,087 1,712,739 |
Schedule of the expiry profile of unprovided tax losses | December 31, December 31, Expiring in 2020 — 690,646 2021 213,992 958,188 2022 795,012 1,211,002 2023 882,156 997,376 2024 2,110,447 2,353,070 2025 2,591,903 — 6,593,510 6,210,282 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | December 31, 2020 December 31, 2019 (Restated) Financial assets – Long-term receivables 127,754 128,673 Prepayment for mining rights 809,722 813,822 Long-term prepaid expenses 654,291 650,062 Deferred losses for sale and leaseback transactions* 396,368 766,546 Others 1,177,785 849,819 3,038,166 3,080,249 3,165,920 3,208,922 * As disclosed in Note 20, the Group entered into several sale and leaseback agreements which constitute finance leases in previous years. The deferred losses arising from the sale are classified as other non-current assets and were amortized over the useful lives of the assets leased back. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
Schedule of inventories | December 31, 2020 December 31, 2019 (Restated) Raw materials 7,450,822 6,825,871 Work-in-progress 7,290,838 7,847,599 Finished goods 4,830,076 4,501,633 Spare parts 789,136 842,734 Packaging materials and others 25,709 57,870 20,386,581 20,075,707 Less: provision for impairment of inventories (529,827) (560,066) 19,856,754 19,515,641 |
Schedule of provision for inventories | December 31, 2020 December 31, 2019 As of January 1 560,066 811,197 Provision for impairment of inventories 1,492,153 1,503,406 Disposal of subsidiary — (772) Reversal arising from increase in net realizable value (170,766) (340,134) Written off upon sales of inventories (1,351,626) (1,413,631) As of December 31 529,827 560,066 |
TRADE RECEIVABLES AND NOTES R_2
TRADE RECEIVABLES AND NOTES RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
TRADE RECEIVABLES AND NOTES RECEIVABLE | |
Schedule of trade and notes receivables | December 31, 2020 December 31, 2019 (Restated) Trade receivables 5,680,558 5,290,178 Less: impairment (933,563) (715,597) 4,746,995 4,574,581 Notes receivable 4,546,223 2,844,637 9,293,218 7,419,218 |
Schedule of ageing analysis of trade and notes receivables | For the year ended December 31 (Restated) Within 1 year 2,978,123 2,923,616 Between 1 and 2 years 1,031,050 742,477 Between 2 and 3 years 183,288 377,836 Over 3 years 1,488,097 1,246,249 5,680,558 5,290,178 Less: loss allowance for impairment (933,563) (715,597) 4,746,995 4,574,581 |
Schedule of credit risk exposure | As of December 31, 2020 Gross carrying Expected credit Expected credit amount losses losses loss rate (%) Alumina and primary aluminum Within 1 year 245,345 7,104 2.90 Between 1 and 2 years 126,165 12,084 9.58 Between 2 and 3 years 13,153 2,325 17.68 Over 3 years 108,590 103,207 95.04 493,253 124,720 / Trading Within 1 year 401,267 9,753 2.43 Between 1 and 2 years 1,132 110 9.72 Between 2 and 3 years — — — Over 3 years 4,660 4,635 99.46 407,059 14,498 / Energy Within 1 year 231,232 1,204 0.52 Between 1 and 2 years 33,024 1,710 5.18 Between 2 and 3 years 28,177 4,806 17.06 Over 3 years 47,084 44,493 94.50 339,517 52,213 / Corporate and other operating segments Within 1 year 22,600 1,774 7.85 Between 1 and 2 years 2,339 635 27.15 Between 2 and 3 years 13,320 5,010 37.61 Over 3 years 1,593 1,346 84.49 39,852 8,765 / 1,279,681 200,196 Individually assessed trade receivables 4,400,877 733,367 5,680,558 933,563 Set out below is the information about individually assessed trade receivables: As of December 31, 2020 Gross carrying Expected credit Expected credit amount losses losses loss rate (%) State Grid Ningxia Electric Power Company 2,077,715 5,704 0.27 China Aluminum ZiBo International Trading Co., Ltd. 727,682 — — Zhuhai Hongfan nonferrous metal Chemical Co., Ltd. 270,419 270,419 100.00 Wiseson Resources (Singapore) PTE., Ltd. 266,345 266,345 100.00 Aluminum Industry Co., Ltd., Luoyang, Henan 247,163 10,005 4.05 Xinjiang Jiarun Resources Holdings Co., Ltd. 230,189 — — Inner Mongolia Power (Group) Co., Ltd. 214,471 506 0.24 Guizhou Jinpingguo Aluminum Rod Co., Ltd. 111,138 65,946 59.34 Others 255,755 114,442 44.75 4,400,877 733,367 / |
Schedule of movements on the provision for impairment of trade and notes receivables | December 31, 2020 December 31, 2019 (Restated) As of January 1 715,597 659,261 Impairment loss 403,633 237,504 Write off (122,786) (98,554) Reversal (64,661) (83,095) Others 1,780 481 As of December 31 933,563 715,597 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | December 31, 2020 December 31, 2019 (Restated) Financial assets — Deposits paid to suppliers 558,073 501,918 — Dividends receivable 412,736 58,092 — Receivables from disposal of assets 20,950 1,969,833 — Entrusted loans and loans receivable from third parties 1,530,452 1,544,070 — Entrusted loans and loans receivable from related parties 1,264,423 1,309,095 — Interest receivables 39,531 40,936 — Recoverable reimbursement for freight charges 283,460 223,884 — Receivable of electricity price adjustment 494,595 619,206 — Receivable from disposal of aluminum capacity quota 538,655 — — Other financial assets 1,064,763 1,093,480 6,207,638 7,360,514 Less: impairment allowance (2,224,511) (1,696,735) 3,983,127 5,663,779 Advances to employees 17,043 17,207 Deductible input value added tax receivables 1,379,288 2,424,648 Prepaid income tax 116,574 93,093 Prepayments to related parties for purchases 79,435 229,324 Prepayments to suppliers for purchases and others 725,776 635,363 Others 49,598 118,100 2,367,714 3,517,735 Less: impairment allowance (1,621) (2,715) 2,366,093 3,515,020 Total other current assets 6,349,220 9,178,799 |
Schedule of ageing analysis of financial assets included in other current assets | December 31, 2020 December 31, 2019 (Restated) Within 1 year 2,386,289 1,443,338 Between 1 and 2 years 142,887 882,798 Between 2 and 3 years 191,228 151,974 Over 3 years 3,487,234 4,882,404 6,207,638 7,360,514 Less: provision for impairment (2,224,511) (1,696,735) 3,983,127 5,663,779 |
Schedule of movements in the provision for impairment of other current assets | December 31, 2020 December 31, 2019 (Restated) At beginning of year 1,699,450 1,744,503 Impairment loss 656,873 42,897 Write off (62,318) Reversal (17,011) (26,290) Others — 658 As of December 31 2,226,132 1,699,450 |
Schedule of financial assets included in other current assets at amortized cost | Gross carrying Expected credit As of December 31, 2020 amount losses Stage 1 – 12 months expected credit loss 2,218,891 5,961 Stage 2 – life time expected credit loss 578,213 14,966 Stage 3 – life time expected credit loss with credit-impaired 3,410,534 2,203,584 6,207,638 2,224,511 As of December 31, 2019 (Restated) Gross carrying amount Expected credit losses Stage 1 – 12 months expected credit loss 1,524,602 — Stage 2 – life time expected credit loss 4,097,994 82,070 Stage 3 – life time expected credit loss with credit-impaired 1,737,918 1,614,665 7,360,514 1,696,735 |
CASH AND CASH EQUIVALENTS AND_2
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
Schedule of cash and cash equivalents and restricted cash | December 31, 2020 December 31, 2019 (Restated) Restricted cash 1,056,037 1,305,781 Cash and cash equivalents 9,631,152 7,778,853 10,687,189 9,084,634 December 31, 2020 December 31, 2019 (Restated) Balances shown in the consolidated balance sheet 9,631,152 7,778,853 Bank overdrafts (899,955) — Balances per consolidated statement of cash flows 8,731,197 7,778,853 |
Schedule of cash and cash equivalents and restricted cash denominated in foreign currency | December 31, 2020 December 31, 2019 (Restated) RMB 9,581,174 7,878,530 USD 1,095,713 1,195,720 HKD 2,763 4,423 EUR 2,055 1,943 Others 5,484 4,018 10,687,189 9,084,634 |
INTEREST -BEARING LOANS AND BOR
INTEREST -BEARING LOANS AND BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTEREST BEARING LOANS AND BORROWINGS | |
Schedule of interest bearing loans and borrowings | December 31, 2020 December 31, 2019 Long-term loans and borrowings Lease liabilities (Note 20) 7,086,151 8,369,262 Medium-term notes and bonds (Note (b)) – Unsecured 18,975,379 16,736,755 Long-term bank and other loans (Note (a)) – Secured (Note (f)) 9,216,299 13,254,721 – Guaranteed (Note (e)) 4,846,446 3,948,400 – Unsecured 28,951,819 21,632,766 43,014,564 38,835,887 Total long-term loans and borrowings 69,076,094 63,941,904 Current portion of lease liabilities (Note 20) (828,272) (1,358,654) Current portion of medium-term notes and bonds (7,100,711) — Current portion of long-term bank and other loans (3,629,014) (3,339,687) (11,557,997) (4,698,341) Non-current portion of long-term loans and borrowings 57,518,097 59,243,563 December 31, 2020 December 31, 2019 (Restated) Short-term loans and borrowings Bank and other loans (Note (c)) – Secured (Note (f)) 863,738 465,000 – Guaranteed (Note (e)) 50,000 — – Unsecured* 19,824,292 20,773,166 20,738,030 21,238,166 Short-term bonds, unsecured (Note (d)) 2,411,256 9,331,488 Gold leasing arrangements — 7,018,609 Current portion of lease liabilities (Note 20) 828,272 1,358,654 Current portion of medium-term notes 7,100,711 — Current portion of long-term bank and other loans 3,629,014 3,339,687 13,969,253 21,048,438 Total short-term borrowings and current portion of long-term loans and borrowings 34,707,283 42,286,604 |
Schedule of maturity of long-term bank and other loans | Loans from banks and other Total of long-term bank and financial institutions Other loans other loans December 31 December 31 December 31 December 31 December 31 December 31 Within 1 year 3,626,564 3,337,202 2,450 2,485 3,629,014 3,339,687 Between 1 and 2 years 6,700,237 7,523,290 2,450 2,485 6,702,687 7,525,775 Between 2 and 5 years 15,630,739 9,151,573 7,350 7,455 15,638,089 9,159,028 Over 5 years 17,042,324 18,806,428 2,450 4,969 17,044,774 18,811,397 42,999,864 38,818,493 14,700 17,394 43,014,564 38,835,887 |
Schedule of interest-bearing loans and borrowings in which the Group received guarantees | Guarantors December 31, 2020 December 31, 2019 Long-term loans Yinyi Fengdian, Neimenggu, Alashan (Note (iv)) 144,000 150,000 Ningxia Energy (Note (i)) 1,134,400 1,274,400 Yinxing Energy (Note (i)) 19,000 46,000 Baotou Aluminum Limited Company (包頭鋁業有限公司) and Baotou Communications Investment Group Limited Company (包頭交通投資集團有限公司) (Note (ii)) 1,137,500 1,250,000 The Company and Hangzhou Jinjiang Group Limited Company (“Hangzhou Jinjiang”, 杭州錦江集團有限公司) (Note (iii)) — 10,000 Hangzhou Jinjiang (Note (v)) — 123,500 Qingzhen Industrial Investment Co., Ltd. (清鎮市工業投資有限公司) (Note (v)) — 47,250 Guizhou Industrial Investment Group Co., Ltd. (貴州產業投資集團有限責任公司) (Note (v)) — 47,250 The Company 2,411,546 1,000,000 4,846,446 3,948,400 Short-term loans Ningxia Energy (Note (i)) 50,000 — 4,896,446 3,948,400 Notes: (i) The guarantor is a subsidiary of the Company. (ii) The guarantors are a subsidiary of the Company and a third party respectively. (iii) The guarantors are the Company and a third party respectively. (iv) The guarantors are subsidiaries of the Company. (v) The guarantor is a third party. |
Medium-term notes and bonds and long-term bonds and private placement notes | |
INTEREST BEARING LOANS AND BORROWINGS | |
Schedule of interest bearing loans and borrowings | Effective Face value (RMB)/maturity interest rate December 31, 2020 December 31, 2019 2018 Medium-term notes 2,000,000/2021 5.84 % 1,998,802 1,992,339 2019 Medium-term bonds 2,000,000/2024 4.31 % 1,985,264 1,982,228 2018 Medium-term bonds 1,100,000/2021 4.66 % 1,099,284 1,098,218 2018 Medium-term bonds 900,000/2023 5.06 % 898,807 898,315 2018 Medium-term bonds 1,400,000/2021 4.30 % 1,398,160 1,397,319 2018 Medium-term bonds 1,600,000/2023 4.57 % 1,597,071 1,596,192 2019 Medium-term bonds 2,000,000/2022 3.84 % 1,999,196 1,998,604 2019 Medium-term bonds 1,000,000/2022 3.50 % 1,997,265 1,997,097 2019 Medium-term bonds 900,000/2023 4.99 % 999,623 999,462 2020 Medium-term bonds 900,000/2023 3.04 % 897,972 — 2020 Medium-term bonds 500,000/2025 3.31 % 499,853 — 2020 Medium-term bonds 1,000,000/2023 3.07 % 999,617 — 2018 Hong Kong Medium-term bonds 2,785,840/2021 5.25 % 2,604,465 2,776,981 18,975,379 16,736,755 |
Short-term bonds | |
INTEREST BEARING LOANS AND BORROWINGS | |
Schedule of interest bearing loans and borrowings | Effective December 31, Face value (RMB)/maturity interest rate December 31, 2019 Ningxia short-term bonds 300,000/2020 3.97 % — 300,000 Short-term bonds 1,000,000/2020 2.45 % — 1,008,161 Short-term bonds 2,000,000/2020 2.63 % — 2,013,127 Short-term bonds 3,000,000/2020 2.00 % — 3,008,384 Short-term bonds 3,000,000/2020 2.30 % — 3,001,816 Short-term bonds 500,000/2021 1.40 % 501,781 — Short-term bonds 1,000,000/2021 2.30 % 1,002,925 — Short-term bonds 500,000/2021 1.20 % 500,553 — Short-term bonds 400,000/2021 2.46 % 405,997 — 2,411,256 9,331,488 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASE | |
Summary of carrying amounts of right-of-use assets and the movements during the period | Buildings Machinery Land use rights Total As of January 1, 2020 287,255 3,756,305 11,846,877 15,890,437 Additions 15,023 8,831 52,925 76,779 Transfer from property, plant and equipment (Note 7) — — 885,141 885,141 Contract modification (12,317) — (43,496) (55,813) Transfer to property, plant and equipment — (1,663,686) — (1,663,686) Transfer to investment properties (Note 8) — — (45,885) (45,885) Disposals — — (15,792) (15,792) Depreciation (54,792) (321,464) (391,297) (767,553) Impairment loss — (15,790) — (15,790) As of December 31, 2020 235,169 1,764,196 12,288,473 14,287,838 Buildings Machinery Land use rights Total As of January 1, 2019 396,499 6,128,291 11,452,061 17,976,851 Additions 21,203 11,606 1,215,049 1,247,858 Transfer to investment properties (Note 8) — — (239,765) (239,765) Transfer to property, plant and equipment (Note 7) — (1,674,260) — (1,674,260) Government grants — (107,441) — (107,441) Contract modification (45,507) — (137,358) (182,865) Disposals — — (52,668) (52,668) Depreciation (84,940) (601,891) (388,994) (1,075,825) Impairment losses — — (1,448) (1,448) As of December 31, 2019 287,255 3,756,305 11,846,877 15,890,437 |
Summary of carrying amounts of lease liabilities and the movements during the period | Year ended December 31, 2020 Carrying amount at January 1 8,369,262 New leases 54,109 Lease modification (55,814) Accretion of interest recognized during the year 466,796 Payments (1,748,202) Carrying amount at December 31 7,086,151 Analyzed into: Current portion 828,272 Non-current portion 6,257,879 |
Summary of amounts recognised in profit or loss in relation to leases | December 31, 2020 Interest on lease liabilities 466,796 Depreciation charge of right-of-use assets 767,553 Expense relating to short-term leases 214,204 Expense relating to leases of low-value assets 39,130 Total amount recognized in profit or loss 1,487,683 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of other non current liabilities | December 31, 2020 December 31, 2019 (Restated) Financial liabilities –Long-term payables for mining rights 1,014,169 1,108,075 –Other financial liabilities 22,748 45,412 1,036,917 1,153,487 Obligations in relation to early retirement schemes (Note (i)) 217,864 427,783 Deferred government grants 182,221 245,916 Deferred gain relating to sales and leaseback agreements 58,844 125,707 Contract liabilities (Note 5) 182,859 125,758 Provision for rehabilitation 316,812 131,248 Others 152,041 10,721 1,110,641 1,067,133 2,147,558 2,220,620 Note: (i) Obligations in relation to early retirement schemes From 2014, certain subsidiaries and branches implemented early retirement benefit schemes which allow qualified employees to early retire on a voluntary basis. The Group undertakes the obligations to pay the early retired employees’ living expenses for no more than five years in the future on a monthly basis according to the early retirement benefit schemes, together with social insurance and housing fund pursuant to the regulation of the local Social Security Office. Living expenses, social insurance and the housing fund are together referred to as “the Payments”. The payments are forecasted to increase by 3% per annum with reference to the inflation rate and adjusted based on the average death rate in China. The payments are discounted by the treasury bond rate of December 31, 2020. As of December 31, 2020, the current portion of the payments within one year was reclassified to “Other payables and accrued liabilities”. |
Schedule of obligations in relation to retirement benefits under the Group's early retirement schemes | As of December 31, 2020, obligations in relation to retirement benefits under the Group’s early retirement schemes are as follows: December 31, 2020 December 31, 2019 (Restated) As of January 1 843,253 1,295,453 Provision made during the year (Note 30) 53,339 210,428 Interest costs 11,582 18,260 Payment during the year (410,840) (680,888) As of December 31 497,334 843,253 Non-current 217,864 427,783 Current (Note 22) 279,470 415,470 497,334 843,253 |
OTHER PAYABLES AND ACCRUED LI_2
OTHER PAYABLES AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER PAYABLES AND ACCRUED LIABILITIES | |
Schedule of other payables and accrued liabilities | December 31, 2020 December 31, 2019 (Restated) Financial liabilities –Payable for capital expenditures 4,677,705 6,832,365 –Interest payable 533,382 494,341 –Payables withheld as guarantees and deposits 1,748,356 1,346,361 –Dividends payable by subsidiaries to non-controlling shareholders 289,791 518,360 –Consideration payable for investment projects 23,740 141,740 –Current portion of payables for mining rights 460,101 372,824 –Others 1,254,375 1,085,516 8,987,450 10,791,507 Output value-added tax on pending 271,963 210,283 Taxes other than income taxes payable* 797,251 696,407 Accrued payroll and bonus 71,486 21,902 Staff welfare payables 323,180 258,654 Current portion of obligations in relation to early retirement schemes (Note 21) 279,470 415,470 Contribution payable for pension insurance 22,935 20,386 Others 273 999 1,766,558 1,624,101 10,754,008 12,415,608 * Taxes other than income taxes payable mainly comprise accruals for value-added tax, resource tax, city construction tax and education surcharge. |
TRADE AND NOTES PAYABLES (Table
TRADE AND NOTES PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
TRADE AND NOTES PAYABLES | |
Schedule of trade and notes payables | December 31, 2020 December 31, 2019 (Restated) Trade payables 9,972,937 7,882,265 Notes payable 5,467,922 4,726,541 15,440,859 12,608,806 |
Schedule of ageing analysis of trade and notes payables | December 31, 2020 December 31, 2019 (Restated) Within 1 year 14,923,453 12,170,016 Between 1 and 2 years 210,587 229,221 Between 2 and 3 years 119,587 30,718 Over 3 years 187,232 178,851 15,440,859 12,608,806 |
PLEDGE OF ASSETS (Tables)
PLEDGE OF ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PLEDGE OF ASSETS | |
Summary of pledged assets | December 31, 2020 December 31, 2019 Property, plant and equipment (Note 7) 5,191,185 4,946,338 Right-of-use assets (Note 20) 1,232,491 373,048 Intangible assets (Note 6) 960 757,269 Notes receivable (Note 14) 1,499,260 667,190 Investments in associates (Note 9) 395,610 538,787 8,319,506 7,282,632 |
EXPENSE BY NATURE (Tables)
EXPENSE BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EXPENSE BY NATURE | |
Schedule of expenses by nature | For the year ended December 31 (Restated) (Restated) Purchase of inventories in relation to trading activities 85,443,397 104,928,962 102,515,791 Raw materials and consumables used, and changes in work-in-progress and finished goods 43,203,349 35,573,467 32,987,302 Power and utilities 17,651,304 16,755,424 16,766,950 Depreciation of right-of-use assets (Note 20) — 1,075,825 767,553 Depreciation and amortization (other than depreciation of right-of-use assets) expenses 8,062,117 7,714,418 7,910,802 Employee benefit expenses (Note 30) 7,484,385 7,773,170 7,872,005 Repairs and maintenance 1,760,016 1,867,160 1,595,880 Transportation expenses and logistic cost 4,688,761 3,420,360 4,079,157 Inventory impairment loss 2,247,588 1,163,272 1,321,387 Taxes other than income tax expense (Note (i)) 937,892 1,431,587 1,600,996 Packaging expenses 261,626 277,785 294,359 Auditors’ remuneration -The Company’s auditor -Audit services 25,329 25,444 18,170 -Non-audit services 1,370 2,388 700 -Other auditors 4,153 5,505 12,436 Others 2,445,657 2,641,954 1,875,928 174,216,944 184,656,721 179,619,416 Note: (i) Taxes other than income tax expense mainly comprise surcharges, land use tax, property tax and stamp duty. |
NET IMPAIRMENT LOSSES ON FINA_2
NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS | |
Schedule of net impairment losses on financial assets | For the year ended December 31 (Restated) (Restated) Impairment losses on trade and notes receivables (Note 14) 44,078 154,409 338,972 Impairment losses on other current assets (Note 15) 63,878 16,607 639,862 107,956 171,016 978,834 |
OTHER GAINS, NET (Tables)
OTHER GAINS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER GAINS, NET | |
Schedule of other gains, net | For the year ended December 31 (Restated) (Restated) Gain on disposal of subsidiaries (Note 40) 3,517 261,187 11,305 Realized and unrealized gains on futures, forward and option contracts, net (Note (1)) 141,459 50,820 512,984 Gain on disposal of property, plant and equipment and intangible assets, net (Note (2)) 272,098 259,684 448,439 Gain on acquisition of associates — 557,965 — Gain on previously held equity interests remeasured at acquisition-date fair value 748,086 — — Gain on disposal of investment in a joint venture (1,904) 159,514 — Others (238,156) (41,661) (68,856) 925,100 1,247,509 903,872 Notes: (1) The Group does not apply hedge accounting for these futures, forward and option contracts. (2) During the year, the transactions contributed to the gain on disposal of aluminum capacity quota and property, plant and equipment mainly include the following: (a) The aluminum capacity quota of Shandong Huayu has been disposed of, and the Group recognized the disposal gain of RMB539 million from the difference between the transfer price and carrying amount of the assets (Note 19). (b) The fixed assets related to the aluminum production line of Fushun Aluminum Co., Ltd. have been disposed of, and the Group recognized the disposal loss of RMB66 million from the difference between the transfer price and carrying amount of the assets. |
FINANCE INCOME_FINANCE COSTS (T
FINANCE INCOME/FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FINANCE INCOME/FINANCE COSTS | |
Schedule of analysis of finance income/finance costs | For the year ended December 31 (Restated) (Restated) Finance income-interest income (492,322) (261,193) (226,921) Interest expense 5,202,835 4,665,537 3,986,264 Less: Interest expense capitalized in property, plant and equipment (Note 7) (517,589) (289,499) (123,571) Interest expense, net of capitalized interest 4,685,246 4,376,038 3,862,693 Interest on lease liability and amortization of unrecognized finance expenses 205,335 547,820 481,512 Exchange losses/(gains), net (7,889) (2,317) 76,323 Finance costs 4,882,692 4,921,541 4,420,528 Finance costs, net 4,390,370 4,660,348 4,193,607 Capitalization rate during the year (Note 7) 4.54% to 7.00% 4.00% to 6.96% 4.00% to 6.68% |
EMPLOYEE BENEFIT EXPENSES (Tabl
EMPLOYEE BENEFIT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EMPLOYEE BENEFIT EXPENSE | |
Schedule of analysis of employee benefit expenses | For the year ended December 31 (Restated) (Restated) Salaries and bonuses 4,671,230 4,939,758 5,322,387 Housing fund 417,721 488,574 532,842 Staff welfare and other expenses* 1,910,184 2,035,931 1,955,447 Employment expense in relation to early retirement schemes (Note 21) 447,660 210,428 53,339 Employment expenses in relation to termination benefits 37,590 98,479 7,990 7,484,385 7,773,170 7,872,005 *Staff welfare and other expenses include staff welfare, staff union expenses, staff education expenses and unemployment insurance expenses etc. |
DIRECTORS' AND SUPERVISORS' R_2
DIRECTORS' AND SUPERVISORS' REMUNERATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant related party transactions | |
Schedule of directors' and supervisors' remuneration | December 31, 2018 December 31, 2019 December 31, 2020 Fees 756 780 683 Basic salaries, housing fund, other allowances and benefits in kind 1,849 4,665 4,183 Pension costs 234 513 20 2,839 5,958 4,886 |
Schedule of remuneration of each director and supervisor | The remuneration of each director and supervisor of the Company for the year ended December 31, 2020 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Lu Dongliang (Note (i)) — — — — — He Zhihui (Note (ii)) — 866 — 37 903 Jiang Yinggang (Note (iii)) — 562 — 31 593 Zhu Runzhou — 894 — 44 938 — 2,322 — 112 2,434 Non-executive Directors: Ao Hong — — — — — Wang Jun (Note (iv)) 50 — — — 50 Chen Lijie 211 — — — 211 Lie-A-Cheong Tai-Chong, David 211 — — — 211 Hu Shihai 211 — — — 211 683 — — — 683 Supervisors: Ye Guohua — — — — — Ou Xiaowu (Note (v)) — 134 — 7 141 Shan shulan — — — — — Guan Xiaoguang — 770 — 44 814 Yue Xuguang — 770 — 44 814 Total — 1,674 — 95 1,769 The remuneration of each director and supervisor of the Company for the year ended December 31, 2019 is set out below: Discretionary Pension Names of directors and supervisors Fees Salaries bonuses costs total Executive Directors: Lu Dongliang (Note (i)) — — — — — He Zhihui (Note (ii)) — 885 — 73 958 Jiang Yinggang (Note (iii)) — 889 — 88 977 Zhu Runzhou — 833 — 88 921 — 2,607 — 249 2,856 Non-executive Directors: Ao Hong — — — — — Wang Jun (Note (iv)) 150 — — — 150 Chen Lijie 210 — — — 210 Lie-A-Cheong Tai-Chong, David 210 — — — 210 Hu Shihai 210 — — — 210 780 — — — 780 Supervisors: Ye Guohua — — — — — Ou Xiaowu (Note (v)) — — — — — Shan shulan — — — — — Guan Xiaoguang — 710 — 88 798 Yue Xuguang — 770 — 88 858 Wu Zuoming — 578 — 88 666 Total — 2,058 — 264 2,322 The remuneration of each director and supervisor of the Company for the year ended December 31, 2018 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Yu Hehui — — — — — Lu Dongliang (Note (i)) — — — — — Jiang Yinggang (Note (iii)) — 762 — 90 852 Zhu Runzhou — 438 — 54 492 — 1,200 — 144 1,344 Non-executive Directors: Ao Hong — — — — — Liu Caiming — — — — — Wang Jun (Note (iv)) 150 — — — 150 Chen Lijie 202 — — — 202 Lie-A-Cheong Tai-Chong, David 202 — — — 202 Hu Shihai 202 — — — 202 756 — — — 756 Supervisors: Liu Xiangmin — — — — — Wang Jun — — — — — Wu Zuoming — 649 — 90 739 Total — 649 — 90 739 Notes: (i) On May 14, 2020, Mr. Lu Dongliang has resigned as chairman and executive director of the Company. (ii) On October 21, 2020, Mr. He Zhihui has resigned as an executive director and president of the Company. (iii) On August 31, 2020, Mr. Jiang Yinggang has passed away due to illness. (iv) Since May 2020, Mr. Wang Jun has issued a voluntary waiver of director's remuneration to the Company who has voluntarily waived his remuneration as a result of his service as a director of the Board of the Company. (v) On October 22, 2020, Mr. Ou Xiaowu resigned as a supervisor of the Company and was reassigned to the Company as the deputy secretary of the party committee and the secretary of the disciplinary committee. |
Schedule of remuneration payable to the remaining two highest paid individuals | December 31, 2018 December 31, 2019 December 31, 2020 Basic salaries, housing fund, other allowances and benefits in kind 1,305 1,670 1,620 Discretionary bonuses — — — Pension costs 165 137 8 1,470 1,807 1,628 |
Schedule of remuneration of the directors and supervisors of the Company whose remuneration fell within the following band | Number of individuals December 31, 2018 December 31, 2019 December 31, 2020 Nil to RMB1,000,000 12 14 14 |
Directors and supervisors | |
Significant related party transactions | |
Schedule of remuneration of the directors and supervisors of the Company whose remuneration fell within the following band | Number of employees December 31, December 31, December 31, Nil to RMB1,000,000 2 2 3 |
INCOME TAX EXPENSE (Tables)
INCOME TAX EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAX EXPENSE | |
Schedule of income tax expense | December 31, 2018 December 31, 2019 December 31, 2020 (Restated) (Restated) Current income tax expense 759,111 723,062 813,112 Deferred tax benefit 67,255 (94,686) (230,924) 826,366 628,376 582,188 |
Schedule of reconciliation of the tax expense applicable to profit before tax at the statutory rates | December 31, 2018 December 31, 2019 December 31, 2020 (Restated) (Restated) Profit before income tax 2,272,555 2,118,961 2,155,217 Tax expense calculated at the statutory tax rate of 25% (2019: 25%, 2018: 25%) 568,139 529,740 538,804 Tax effects of: Preferential income tax rates applicable to certain branches and subsidiaries (268,665) (464,912) (357,016) Impact of change in income tax rate 23,425 4,594 (52,177) Tax losses with no deferred tax assets recognized 434,103 588,267 477,876 Deductible temporary differences with no deferred tax assets recognized 384,072 41,695 146,276 Utilization of previously unrecognized tax losses and deductible temporary differences (52,962) (18,105) (73,779) Tax incentive in relation to deduction of certain expenses (62,172) (50,921) (42,958) Expenses not deductible for tax purposes 54,959 56,448 52,261 Non-taxable income (252,500) (173,686) — Write-off of unrecoverable deferred tax assets previously recognized 183,195 187,432 41,757 Profits and losses attributable to joint ventures and associates 40,029 (79,720) (70,577) Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized (233,940) (3,868) (61,987) Adjustments in respect of current income tax of previous periods 8,683 11,412 (16,292) Income tax expense 826,366 628,376 582,188 Effective tax rate 36 % 30 % 27 % |
EARNINGS PER SHARE ATTRIBUTAB_2
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | |
Schedule of basic earnings per share | For the year ended December 31 (Restated) (Restated) Profit attributable to owners of the Company (in thousands of RMB) 709,397 853,102 741,004 Other equity instruments’ distribution reserved (in thousands of RMB) (129,282) (219,249) (261,168) Profit attributable to ordinary shares holders of the Company 580,115 633,853 479,836 Number of ordinary shares in issue (thousands) as of January 1 14,903,798 14,903,798 17,022,673 Effect of equity exchange arrangement 1,938,916 — — Issuance of share capital (thousands) (Note 17) — 2,118,875 — Weighted average number of ordinary shares in issuance 16,842,714 17,022,673 17,022,673 Basic earnings per share (RMB) 0.034 0.037 0.028 |
NOTES TO THE CONSOLIDATED STA_2
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | |
Schedule of cash flows generated from operating activities | For the year ended December 31 Notes (Restated) (Restated) Cash flows generated from operating activities Profit before income tax 2,272,555 2,118,961 2,155,217 Adjustments for: Share of profits of joint ventures 9 (a) 199,452 (270,115) (180,502) Share of profits of associates 9 (b) (39,335) (48,767) (145,737) Depreciation of property, plant and equipment 7 7,505,687 7,100,776 7,152,170 Depreciation of investment properties 8 22,229 26,559 24,405 Depreciation of right-of-use assets 20 — 1,075,825 767,553 Amortization of land use rights 108,152 — — Amortization of intangible assets 6 295,901 338,938 459,482 Amortization of prepaid expenses included in other non-current assets 130,148 248,145 274,745 Gain on write-off and disposal of property, plant and equipment and intangible assets, net (101,098) (243,622) (319,796) Impairment loss on property, plant and equipment 46,484 259,354 416,841 Impairment loss of investment properties — 87 — Impairment loss of intangible assets — — 416 Impairment loss of right-of-use assets 20 — 1,448 15,790 Impairment loss of inventory 2,247,588 1,163,272 1,321,387 Impairment loss of trade and notes receivables 44,078 154,409 338,972 Impairment loss of other currents assets 63,878 16,607 639,862 Realized and unrealized gains on futures, option and forward contracts 28 (141,459) (50,820) (512,984) Gain on previously held equity interest remeasured at acquisition-date fair value (748,086) — — Gain on disposal of subsidiaries 28 (3,517) (261,187) (11,305) Gain on disposal of investment in a joint venture and associates 28 1,904 (159,514) — Gain on acquisition of associates 28 - (557,965) — Dividends from other financial assets measured at fair value 28 (109,914) (97,775) (82,794) Government subsidies (158,109) (112,141) (29,933) Finance cost 29 4,882,692 4,921,541 4,420,528 Change in special reserve 6,605 (23,085) 12,524 Others 75,381 (11,558) 21,342 Changes in working capital: Decrease/(increase) in inventories (1,051,617) (234,203) (1,668,260) Increase in trade and notes receivables (2,559,274) (1,169,339) (3,867,944) Decrease/ (increase) in other current assets 852,918 (377,246) (414,247) Decrease in restricted cash 530,284 859,507 249,744 (Increase)/decrease in other non-current assets 425,739 547,856 (70,637) Increase/(decrease) in trade and notes payables 18,669 (1,405,565) 3,009,490 Increase/(decrease) in other payables and accrued liabilities (951,554) (560,910) 1,879,398 (Decrease)/increase in other non-current liabilities 105,386 (206,354) (177,045) Cash generated from operations 13,971,767 13,043,119 15,678,682 PRC corporate income taxes paid (950,091) (551,446) (797,336) Net cash generated from operating activities 13,021,676 12,491,673 14,881,346 Major non-cash transactions of investing activities and financing activities Investment in a joint venture used gallium business — 352,848 — Acquisition of minority interests for nil consideration — 149,322 — Endorsement of notes receivables accepted from sale of goods or services for purchase of property, plant and equipment 2,384,046 1,504,162 2,276,782 Acquisition of other financial assets measured at fair value through other comprehensive income by exchanging equity in a subsidiary — 350,911 — Equity exchange arrangement 10,735,214 — — Finance lease 113,601 — — Acquisition of business 70,087 — 42,230 13,302,948 2,357,243 2,319,012 |
Schedule of reconciliation of liabilities arising from financing activities | Financial liabilities included in other current payables and Interest bearing loans accrued expenses and borrowings Total As of January 1, 2020 (Restated) 10,791,507 101,530,167 112,321,674 Net cash generated from operating activities 1,988 — 1,988 Net cash flows generated from/(used in) investing activities (2,154,660) 546,995 (1,607,665) Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — 25,870,716 25,870,716 Distribution of senior perpetual securities — (421,416) (421,416) Repayments of medium-term notes and short-term bonds — (30,638,813) (30,638,813) Repayments of gold leasing arrangement — (6,921,860) (6,921,860) Drawdown of short-term and long-term bank borrowings and other loans — 46,021,404 46,021,404 Repayments of short-term and long-term bank borrowings and other loans — (43,111,460) (43,111,460) Principal portion of lease payment — (1,748,202) (1,748,202) Dividends paid by subsidiaries to non-controlling shareholders 2,474 — 2,474 Amortization of unrecognized finance expenses and interest expense — 487,249 487,249 Interest paid 258,864 21,650 280,514 Reclassification 87,277 899,955 987,232 Net foreign exchange differences — (311,005) (311,005) Net cash (used in)/generated from financing activities 348,615 (9,851,782) (9,503,167) As of December 31, 2020 8,987,450 92,225,380 101,212,830 Financial liabilities included in other current payables and Interest bearing loans accrued expenses and borrowings Total As of January 1, 2019 (Restated) 9,286,462 101,772,876 111,059,338 Net cash generated from operating activities 497,927 — 497,927 Net cash generated from investing activities 622,995 7,157,695 7,780,690 Proceeds from gold leasing arrangement — 6,921,860 6,921,860 Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — 37,964,489 37,964,489 Repayments of senior perpetual securities — (352,648) (352,648) Repayments of medium-term notes and short-term bonds — (22,400,000) (22,400,000) Repayments of gold leasing arrangement — (1,607,905) (1,607,905) Drawdown of short-term and long-term bank borrowings and other loans — 40,669,197 40,669,197 Repayments of short-term and long-term bank borrowings and other loans — (66,105,388) (66,105,388) Principal portion of lease payments — (3,032,106) (3,032,106) Dividends paid by subsidiaries to non-controlling shareholders (23,715) — (23,715) Amortization of unrecognized finance expenses and interest expense — 487,249 487,249 Interest paid 235,310 22,631 257,941 Reclassification 162,120 — 162,120 Net foreign exchange differences 10,408 32,217 42,625 Net cash (used in)/generated from financing activities 384,123 (7,400,404) (7,016,281) As of December 31, 2019 (Restated) 10,791,507 101,530,167 112,321,674 |
Schedule of total cash outflow for leases | For the year ended December 31 , 2020 Within operating activities 253,334 Within financing activities 1,748,202 2,001,536 |
SIGNIFICANT RELATED PARTY TRA_2
SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES | |
Summary of significant related party transactions | For the year ended December 31 Notes Sales of goods and services rendered: Sales of materials and finished goods to: (i) Chinalco and its subsidiaries (ix) 11,320,015 13,612,817 13,986,223 Associates of Chinalco 897,642 514,414 520,485 Joint ventures 4,462,670 5,676,548 6,694,824 Associates 2,626,780 3,812,565 9,232,432 Non-controlling shareholder of a subsidiary and its subsidiaries — — 42,298 19,307,107 23,616,344 30,476,262 Sales of utility to: (ii) Chinalco and its subsidiaries (ix) 620,552 687,290 1,104,542 Associates of Chinalco 15,719 4,062 3,268 Joint ventures 186,672 263,436 470,984 Associates 24,309 35,650 18,568 847,252 990,438 1,597,362 Provision of engineering, construction and supervisory services to: Chinalco and its subsidiaries 5,981 — — Joint ventures — — — Associates 1,725 — — 7,706 — — Rental revenue of land use rights and buildings from: (vi) Chinalco and its subsidiaries (ix) 31,551 52,571 39,284 Associates of Chinalco — 65 237 Joint ventures 1,545 1,967 1,426 Associates 1,511 775 365 34,607 55,378 41,312 Purchases of goods and services: Purchases of engineering, construction and supervisory services from: (iii) Chinalco and its subsidiaries (ix) 2,088,338 2,949,866 1,755,092 Associates of Chinalco — — 265 Joint ventures 2,100 69,332 — Associates 405,993 218,616 12,233 2,496,431 3,237,814 1,767,590 Provision of social services and logistics services by: (v) Chinalco and its subsidiaries (ix) 312,062 309,180 475,532 312,062 309,180 475,532 Purchases of primary and auxiliary materials, equipment and finished goods from: Chinalco and its subsidiaries (iv) 3,513,420 8,161,223 6,266,563 Associates of Chinalco (ix) 18,917 18 2,586 Joint ventures 8,182,251 2,647,234 5,501,158 Associates 2,108,072 1,893,449 10,576,907 Non-controlling shareholder of a subsidiary and its subsidiaries — — 30,101 13,822,660 12,701,924 22,377,315 Purchases of utility services from: (ii) Chinalco and its subsidiaries (ix) 992,827 763,812 650,921 Associates of Chinalco 96,510 100,835 85,469 Joint ventures 26,269 280,523 443,290 Associates 77,432 8,326 — 1,193,038 1,153,496 1,179,680 Purchases of other services by: (vii) A joint venture 226,280 272,220 373,655 272,220 373,655 Rental expenses /lease liabilities payments for buildings and land use rights charged by: (vi) Chinalco and its subsidiaries (ix) 501,866 499,191 661,888 501,866 499,191 661,888 For the year ended December 31 Notes Other significant related party transactions: Borrowing from subsidiaries of Chinalco (viii), (ix) 6,525,000 3,890,000 1,925,000 Interest expense on borrowings, discounted notes and factoring arrangement from subsidiaries of Chinalco 143,415 141,991 87,985 Investment in subsidiaries of Chinalco — 2,137,608 — Disposal of aluminum capacity quota to a subsidiary of Chinalco — 800,000 — Disposal of assets under a sale and leaseback contract to a subsidiary of Chinalco (x) 224,000 500,000 — Finance lease under a sale and leaseback contract from a subsidiary of Chinalco (x), (ix) 224,000 558,924 — Trade receivable factoring arrangement from a subsidiary of Chinalco (ix) 470,101 136,656 — Discounted notes receivable to a subsidiary of Chinalco (viii) 756,000 679,517 36,750 Provision of financial guarantees to a joint venture 12,450 12,450 — |
Summary of outstanding balances with related entities | December 31, 2019 December 31, 2020 Cash and cash equivalents deposited with A subsidiary of Chinalco * 3,285,093 3,561,997 Trade and notes receivables Chinalco and its subsidiaries 1,054,168 760,138 Associates of Chinalco 6,034 56,107 Joint ventures 788,183 743,369 Associates 25 107 1,848,410 1,559,721 Provision for impairment of receivables (17,815) (74,668) 1,830,595 1,485,053 * On August 26, 2011, the Company entered into an agreement with Chinalco Finance, pursuant to which, Chinalco Finance agreed to provide deposit services, credit services and other financial services to the Group. On August 24, 2012, April 28, 2015, October 26, 2017 and April 27, 2020, the Company renewed the financial service agreement with Chinalco Finance with a validation term of three years ending on October 25, 2023. December 31, 2019 December 31, 2020 Other current assets (Restated) Chinalco and its subsidiaries 421,805 268,321 Joint ventures 1,503,505 1,416,094 Associates 47,743 433,453 Non-controlling shareholder of a subsidiary and its subsidiaries — 1,200 Provision for impairment of other current assets (30,509) (422,089) 1,942,544 1,696,979 Other non-current assets Associates 111,845 111,845 Interest-bearing loans and borrowings: Subsidiaries of Chinalco (including lease liabilities) 9,857,187 8,887,422 Trade and notes payables Chinalco and its subsidiaries 334,840 437,732 Associates of Chinalco 917 1,511 Joint ventures 527,744 561,508 Associates 9,789 10,562 873,290 1,011,313 Other payables and accrued liabilities Chinalco and its subsidiaries 1,810,514 2,193,782 Associates of Chinalco 17,056 1,019 Associates 80,012 28,424 Joint ventures 73,823 3,940 1,981,405 2,227,165 Contract liabilities: Chinalco and its subsidiaries 29,210 17,460 Associates of Chinalco — 13,453 Associates 223 79 Joint ventures 56,010 519 Non-controlling shareholder of a subsidiary and its subsidiaries — 656 85,443 32,167 |
Summary of compensation of key management personnel | December 31, 2018 December 31, 2019 December 31, 2020 Fees 756 780 683 Basic salaries, housing fund, other allowances and benefits in kind 3,953 6,945 6,081 Pension costs 482 715 30 5,191 8,440 6,794 |
FINANCIAL AND CAPITAL RISK MA_2
FINANCIAL AND CAPITAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of carrying amounts of each of the categories of financial instruments of the Group | At December 31, 2020 Debt Equity instruments Financial instruments at at fair value assets at fair fair value through value through Financial through other other profit or loss- assets at comprehensive comprehensive held for trading amortized cost income income Total Current Trade receivables — 4,746,995 — — 4,746,995 Notes receivable — — — 4,546,223 4,546,223 Financial assets at fair value through profit or loss 17,311 — — — 17,311 Restricted cash and term deposits — 1,056,037 — — 1,056,037 Cash and cash equivalents — 9,631,152 — — 9,631,152 Financial assets included in other current assets — 3,983,127 — — 3,983,127 Subtotal 17,311 19,417,311 — 4,546,223 23,980,845 Non-current Other financial assets measured at fair value — — 1,526,703 — 1,526,703 Other non-current assets — 127,754 — — 127,754 Subtotal — 127,754 1,526,703 — 1,654,457 Total 17,311 19,545,065 1,526,703 4,546,223 25,635,302 Financial liabilities As of December 31, 2020 Financial assets at fair Financial value through profit or liabilities at loss-held for trading amortized cost Total Current Financial liabilities at fair value through profit or loss 26,684 — 26,684 Interest-bearing loans and borrowings — 34,707,283 34,707,283 Payables and accrued liabilities (Note 22) — 8,987,450 8,987,450 Trade and notes payables — 15,440,859 15,440,859 Subtotal 26,684 59,135,592 59,162,276 Non-current Financial liabilities included in other non-current liabilities (Note 21) — 1,036,917 1,036,917 Interest-bearing loans and borrowings — 57,518,097 57,518,097 Subtotal — 58,555,014 58,555,014 Total 26,684 117,690,606 117,717,290 Financial Assets As of December 31, 2019 (Restated) Equity Debt instruments instruments Financial at at fair value assets at fair fair value through value through Financial through other other profit or loss- assets at comprehensive comprehensive held for trading amortized cost income income Total Current Trade receivables — 4,574,581 — — 4,574,581 Notes receivables — — — 2,844,637 2,844,637 Financial assets at fair value through profit or loss 3,503,175 — — — 3,503,175 Restricted cash and term deposits — 1,305,781 — — 1,305,781 Cash and cash equivalents — 7,778,853 — — 7,778,853 Financial assets included in other current assets — 5,663,779 — — 5,663,779 Subtotal 3,503,175 19,322,994 — 2,844,637 25,670,806 Non-current — Other financial assets measured at fair value — — 2,239,251 — 2,239,251 Other non-current assets — 128,673 — — 128,673 Subtotal — 128,673 2,239,251 — 2,367,924 Total 3,503,175 19,451,667 2,239,251 2,844,637 28,038,730 Financial Liabilities As of December 31, 2019 (Restated) Financial assets at fair value Financial through profit or loss- held liabilities at for trading amortized cost Total Current Financial liabilities at fair value through profit or loss 805 — 805 Interest-bearing loans and borrowings — 42,286,604 42,286,604 Payables and accrued liabilities (Note 22) — 10,791,507 10,791,507 Trade and notes payables — 12,608,806 12,608,806 Subtotal 805 65,686,917 65,687,722 Non-current Financial liabilities included in other non-current liabilities (Note 21) — 1,153,487 1,153,487 Interest-bearing loans and borrowings — 59,243,563 59,243,563 Subtotal — 60,397,050 60,397,050 Total 805 126,083,967 126,084,772 |
Schedule of carrying amounts and fair values of the Group's financial instruments | Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial assets Other non-current assets (Note 12) 128,673 127,754 111,935 117,537 Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial liabilities Financial liabilities included in other non-current liabilities (Note 21) 1,153,487 1,036,917 1,146,893 903,141 Long-term interest-bearing loans and borrowings, excluding lease liability (Note 19) 52,232,955 51,260,218 50,952,676 49,729,548 53,386,442 52,297,135 52,099,569 50,632,689 |
Schedule of fair value measurement hierarchy | Assets measured at fair value As of December 31, 2020 Fair value measurement using Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial assets at fair value through profit or loss: Futures contracts 17,311 — — 17,311 Financial assets at fair value through other comprehensive income Notes receivable — — 4,546,223 4,546,223 Listed equity investments 8,812 — — 8,812 Other unlisted investment — — 1,517,891 1,517,891 26,123 — 6,064,114 6,090,237 As of December 31, 2019 Fair value measurement using (Restated) Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial assets at fair value through profit or loss: Futures contracts 3,175 — — 3,175 Financial product — 3,500,000 — 3,500,000 Financial assets at fair value through other comprehensive income Notes receivables — — 2,844,637 2,844,637 Listed equity investments 8,853 — — 8,853 Other unlisted investment — — 2,230,398 2,230,398 12,028 3,500,000 5,075,035 8,587,063 Liabilities measured at fair value As of December 31, 2020 Fair value measurement using Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at fair value through profit or loss: futures contracts 26,684 — — 26,684 26,684 — — 26,684 As of December 31, 2019 Fair value measurement using Significant Significant Quoted prices in observable unobservable active markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at fair value through profit or loss: futures contracts 805 — — 805 805 — — 805 Assets for which fair values are disclosed: As of December 31, 2020 Fair value measurement using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Loans and receivables: Financial assets included in other non-current assets — 117,537 — 117,537 As of December 31, 2019 Fair value measurement using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Loans and receivables: Financial assets included in other non-current assets — 111,935 — 111,935 Liabilities for which fair values are disclosed: As of December 31, 2020 Fair value measurement using Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at amortized cost: Financial liabilities included in other non-current liabilities — 903,141 — 903,141 Long-term interest-bearing loans and borrowings — 49,729,548 — 49,729,548 — 50,632,689 — 50,632,689 As of December 31, 2019 Fair value measurement using (Restated) Quoted prices in Significant Significant active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total Financial liabilities at amortized cost: Financial liabilities included in other non-current liabilities — 1,146,893 — 1,146,893 Long-term interest-bearing loans and borrowings — 50,952,676 — 50,952,676 — 52,099,569 — 52,099,569 |
Summary of significant unobservable inputs to the valuation of financial instruments | Significant Valuation Technique unobservable input Equity investments in Size Industry Investment Fund December 31, 2020 Discounted Cashflow Model Discounted rate Chinalco Innovative December 31, 2020 Market approach Risk premium Notes receivable December 31, 2020 Discounted Cashflow model Discounted rate |
Schedule of the gearing ratio | December 31, 2019 December 31, 2020 (Restated) Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) 130,168,916 121,811,607 Less: Restricted cash, term deposits and cash and cash equivalents 9,084,634 10,687,189 Net debt 121,084,282 111,124,418 Total equity 70,757,466 71,171,716 Add: Net debt 121,084,282 111,124,418 Less: Non-controlling interests 16,085,487 16,839,706 Total capital attributable to owners of the parent 175,756,261 165,456,428 Gearing ratio 69 % 67 % |
Commodity price risk | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of impact of change in futures prices | December 31, 2019 December 31, 2020 Primary aluminum Decrease/increase Decrease/increase |
Credit risk | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of maximum exposure to credit risk | Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables — — — 4,746,995 4,746,995 Financial assets in other current assets 2,212,930 563,247 1,206,950 — 3,983,127 Restricted cash 1,056,037 — — — 1,056,037 Notes receivables — — — 4,546,223 4,546,223 Cash and cash equivalents 9,631,152 — — — 9,631,152 Financial assets in other non-current assets 127,754 — — — 127,754 Total 13,027,873 563,247 1,206,950 9,293,218 24,091,288 |
Liquidity risk | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of maturity profile of Group's financial liabilities | Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total As of December 31, 2020 Lease liabilities, including current portion 1,151,332 473,410 1,263,824 9,708,710 12,597,276 Long-term bank and other loans, including current portion 3,629,014 6,702,687 15,638,089 17,044,774 43,014,564 Medium-term notes and bonds, including current portion 7,109,960 3,000,000 6,900,000 2,000,000 19,009,960 Short-term bonds 2,400,000 — — — 2,400,000 Gold leasing arrangement — — — — — Short-term bank and other loans 20,738,030 — — — 20,738,030 Interest payables for loans and borrowings 2,935,356 2,105,844 4,046,106 2,039,075 11,126,381 Financial liabilities at fair value through profit or loss 26,684 — — — 26,684 Financial liabilities included in other payables and accrued liabilities, excluding accrued interest 8,454,068 — — — 8,454,068 Financial liabilities included in other non-current liabilities — 194,609 74,367 767,941 1,036,917 Trade and notes payables 15,440,859 — — — 15,440,859 61,885,303 12,476,550 27,922,386 31,560,500 133,844,739 Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total As of December 31, 2019 (Restated) Finance lease payables, including current portion 1,729,933 1,106,701 1,333,762 10,377,143 14,547,539 Long-term bank and other loans, including current portion 3,339,687 7,525,775 9,159,028 18,811,397 38,835,887 Medium-term notes and bonds, including current portion — 7,285,840 9,500,000 — 16,785,840 Short-term bonds 9,300,000 — — — 9,300,000 Gold leasing arrangement 6,921,860 — — — 6,921,860 Short-term bank and other loans 21,238,166 — — — 21,238,166 Interest payables for borrowings 4,955,925 2,289,092 4,220,111 978,041 12,443,169 Financial liabilities at fair value through profit or loss 805 — — — 805 Financial liabilities included other payables and accrued liabilities, excluding accrued interest 10,297,166 — — — 10,297,166 Financial liabilities included in other non-current liabilities (note) — 176,232 182,006 795,249 1,153,487 Trade and notes payables 12,608,806 — — — 12,608,806 70,392,348 18,383,640 24,394,907 30,961,830 144,132,725 |
NON - CONTROLLING INTERESTS (Ta
NON - CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Schedule of Group's subsidiaries that have material non-controlling interests | December 31, 2019 December 31, 2020 Percentage of equity interest held by non-controlling interests Ningxia Energy 29.18 % 29.18 % Shanxi Zhongrun 56.61 % 60.00 % Guizhou Huaren 60.00 % 60.00 % Profit for the year allocated to non-controlling interests Ningxia Energy 240,504 48,040 Shanxi Zhongrun 69,701 147,747 Guizhou Huaren 198,016 420,737 Dividends distributed to non-controlling interests Ningxia Energy 76,469 — Shanxi Zhongrun — — Guizhou Huaren — — Accumulated balances of non-controlling interests at the year ended Ningxia Energy 4,978,089 5,178,314 Shanxi Zhongrun 996,686 1,277,602 Guizhou Huaren 1,028,426 1,359,716 |
Ningxia Energy | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | Ningxia Energy Revenue Total expenses Profit for the year Total comprehensive income for the year Current assets Non-current assets Current liabilities Non-current liabilities Net cash flows from operating activities Net cash flows used in investing activities (939,054) (652,297) Net cash flows used in financing activities (2,611,597) (1,792,661) Effect of foreign exchange rate changes, net — — Net increase/(decrease) in cash and cash equivalents (275,968) |
Shanxi Zhongrun | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | Shanxi Zhongrun 2019 2020 Revenue 2,204,777 3,561,831 Total expenses 2,081,652 3,315,585 Profit for the year 123,125 246,246 Total comprehensive income for the year 123,125 246,246 Current assets 783,726 643,121 Non-current assets 4,010,818 4,138,211 Current liabilities 1,084,890 2,595,397 Non-current liabilities 2,093,735 45,365 Net cash flows from operating activities 234,014 418,528 Net cash flows used in investing activities (402,636) (188,504) Net cash flows from/used in financing activities 307,452 (404,548) Effect of foreign exchange rate changes, net — — Net (decrease)/increase in cash and cash equivalents 138,830 (174,524) |
Guizhou Huaren | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | Guizhou Huaren Revenue 5,982,665 6,094,811 Total expenses 5,677,075 5,393,582 Profit for the year 305,590 701,229 Total comprehensive income for the year 305,590 701,229 Current assets 1,034,442 1,610,363 Non-current assets 2,650,822 2,601,807 Current liabilities 1,164,346 1,003,650 Non-current liabilities 1,006,360 932,570 Net cash flows from operating activities 565,027 992,304 Net cash flows used in investing activities (91,319) (27,475) Net cash flows used in financing activities (354,187) (612,892) Effect of foreign exchange rate changes, net — — Net increase in cash and cash equivalents 119,521 351,937 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Suzhou Zhongcai | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, 2018 June 1, 2019 Assets Property, plant and equipment 55,747 55,746 Land use rights 26,574 — Right-of-use assets — 26,318 Other current assets 2,561 2,229 Deferred tax assets 86 143 Trade and notes receivables 3,485 2,758 Cash and cash equivalents 183 136 Liabilities Deferred tax liabilities 111 — Interest-bearing loans and borrowings 51,908 51,908 Other payables and accrued expenses 34,536 33,404 Trade and notes payables 1,664 1,564 Net assets 417 454 Non-controlling interests — — Net assets acquired — 454 Difference recognized in equity (217) Total purchase consideration 237 |
Guizhou Huaren | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | January 1, 2018 Fair value Assets Property, plant and equipment 2,194,095 Land use rights 109,320 Intangible assets 137 Other current assets 353,655 Inventories 220,718 Trade and notes receivables 250 Restricted cash 324,030 Cash and cash equivalents 673,587 Liabilities Deferred tax liabilities (58,299) Interest-bearing loans and borrowings (1,680,000) Contract liabilities (2,562) Other payables and accrued expenses (345,562) Trade and notes payables (464,454) Net assets 1,324,915 Non-controlling interests 794,949 Share of net assets acquired 529,966 Goodwill — Satisfied by: Cash — Fair value of previously held equity interest 529,966 529,966 |
Summary of equity interest acquired before acquisition | January 1, 2018 Initial investment cost 480,000 Share of loss accumulated under the equity method (18,347) Book value of the investment in 40% equity of Guizhou Huaren on the acquisition date 461,653 Fair value of the investment in 40% equity of Guizhou Huaren on the acquisition date (Note) 529,966 Gain on previously held equity interest remeasured at acquisition-date fair value 68,313 |
Summary of analysis of cash flows in respect of acquisition | RMB’000 Cash consideration — Cash and bank balances acquired 673,587 Net inflow of cash and cash equivalents included in cash flows from investing activities 673,587 |
Schedule of operating results and cash flows since the merger date to the end of the year | RMB’000 Revenue 4,282,882 Profit for the period 34,639 Net cash flows (490,684) |
Shanxi Zhongrun | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | January 1, 2018 Fair value Assets Property, plant and equipment 2,292,483 Intangible assets 749 Other current assets 215,575 Inventories 15,473 Trade and notes receivables 4,135 Cash and cash equivalents 2,173,062 Liabilities Deferred tax liabilities (41,581) Interest-bearing loans and borrowings (3,485,852) Other payables and accrued expenses (37,789) Trade and notes payables (13,778) Net assets 1,122,477 Non-controlling interests 673,486 Share of net assets acquired 448,991 Goodwill — Satisfied by: Cash — Fair value of previously held equity interest 448,991 448,991 |
Summary of equity interest acquired before acquisition | January 1, 2018 Initial investment cost 400,184 Share of loss accumulated under the equity method (6,553) Book value of the investment in 40% equity of Shanxi Zhongrun on the acquisition date 393,631 Fair value of the investment in 40% equity of Shanxi Zhongrun on the acquisition date (Note) 448,991 Gain on previously held equity interest remeasured at acquisition-date fair value 55,360 |
Summary of analysis of cash flows in respect of acquisition | RMB’000 Cash consideration — Cash and bank balances acquired 2,173,062 Net inflow of cash and cash equivalents included in cash flows from investing activities 2,173,062 |
Schedule of operating results and cash flows since the merger date to the end of the year | RMB’000 Revenue 645,214 Profit for the period 817 Net cash flows (2,137,166) |
Shanxi Huaxing | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 6, 2018 Fair value Assets Property, plant and equipment 7,327,807 Intangible assets 728,067 Land use right 348,901 Deferred tax assets 8,094 Other non-current assets 60,336 Other current assets 102,396 Inventories 865,418 Trade and notes receivables 44,706 Restricted cash 203,350 Cash and cash equivalents 81,344 Liabilities Deferred tax liabilities (722,349) Interest-bearing loans and borrowings (1,743,036) Other non-current liabilities (239,998) Contract liabilities (617,827) Other payables and accrued expenses (686,024) Trade and notes payables (1,594,724) Net assets 4,166,461 Non-controlling interests — Share of net assets acquired 4,166,461 Goodwill 1,163,949 Satisfied by: Cash 2,665,205 Fair value of previously held equity interest 2,665,205 5,330,410 |
Summary of equity interest acquired before acquisition | December 6, 2018 Initial investment cost 2,351,479 Share of loss accumulated under the equity method (77,309) Share of changes in reserves under the equity method 11,166 Cash dividends declared (236,556) Book value of the investment in 50% equity of Shanxi Huaxing on the acquisition date 2,048,780 Fair value of the investment in 50% equity of Shanxi Huaxing on the acquisition date (Note) 2,665,205 Gain on previously held equity interest remeasured at acquisition-date fair value 616,425 |
Summary of analysis of cash flows in respect of acquisition | RMB’000 Cash consideration (2,665,205) Cash and bank balances acquired 81,344 Net inflow of cash and cash equivalents included in cash flows from investing activities (2,583,861) |
Schedule of operating results and cash flows since the merger date to the end of the year | RMB’000 Revenue 415,509 Profit for the period 110,917 Net cash flows (434) |
Shandong Aluminum Carbon Plant | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, 2017 August 31, 2018 Assets Property, plant and equipment 24,393 23,845 Inventories 51,104 46,150 Other current assets 418 411 Trade and notes receivables 23,052 44,522 Cash and cash equivalents 34,354 — Liabilities Trade and notes payables (12,235) (24,011) Contract liabilities — (1,432) Other payables and accrued expenses (38,415) (1,542) Net assets 82,671 87,943 Difference recognized in equity 58,319 Total purchase consideration 146,262 |
Pingguo Aluminum Carbon Plant | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, 2017 August 30, 2018 Assets Property, plant and equipment 35,201 127,315 Trade and notes receivables 12,143 — Inventories 90,581 71,264 Liabilities Trade and notes payables (69,521) (117,749) Net assets 68,404 80,830 Difference recognized in equity 11,218 Total purchase consideration 92,048 |
Chibi Great Wall Carbon | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, 2017 August 30, 2018 Assets Property, plant and equipment 271,604 379,618 Land use rights 26,124 25,731 Deferred tax assets 3,325 3,325 Inventories 59,035 65,440 Other current assets 11,095 18,608 Trade and notes receivables 32,880 53,392 Restricted Cash 15,700 — Cash and cash equivalents 50,545 16,258 Liabilities Interest-bearing loans and borrowings (228,500) (233,000) Contract liabilities — (1,816) Trade and notes payables (46,702) (56,970) Other payables and accrued expenses (51,595) (52,114) Income tax payable (2,927) — Other non-current liabilities (69,640) (65,901) Net assets 70,944 152,571 Non-controlling interests (15,856) (34,100) Difference recognized in equity 83,497 Total purchase consideration 201,968 |
Longhua Logistics | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, 2017 September 17, 2018 Assets Property, plant and equipment 2,901 3,839 Inventories 127 2,207 Other current assets 200 608 Trade and notes receivables 6,704 6,828 Cash and cash equivalents 281 403 Liabilities Trade and notes payables (2,062) (4,647) Contract liabilities — (1,504) Income tax payable (130) — Other payables and accrued expenses (1,323) (2,065) Net assets 6,698 5,669 Non-controlling interests (3,281) (2,778) Net assets acquired 2,891 Difference recognized in equity 413 Total purchase consideration 3,304 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS | |
Schedule of capital commitments on property, plant and equipment | December 31, 2019 December 31, 2020 Property, plant and equipment 4,041,857 1,437,354 |
Schedule of commitments to make capital contributions to the Group's joint ventures and associates | December 31, 2019 December 31, 2020 Associates 33,800 351,800 Joint ventures 410,000 410,000 443,800 761,800 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020HKD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019 | |
Shanxi Huaxing | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,850,000 | ||
Ownership interest in subsidiary (in percent) | 60.00% | 60.00% | |
Indirect ownership interest in subsidiary (in percent) | 40.00% | 40.00% | |
Baotou Aluminum | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 2,245,510 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Chalco Trading | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,731,111 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Shanxi New Material | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 4,279,601 | ||
Ownership interest in subsidiary (in percent) | 85.98% | 85.98% | |
China Aluminum International Trading Group Co. Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,030,000 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Zunyi Aluminum Co., Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 3,204,900 | ||
Ownership interest in subsidiary (in percent) | 67.45% | 67.45% | |
Chalco Hong Kong | |||
GENERAL INFORMATION | |||
Registered capital | $ | $ 849,940 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Chalco Mining | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 4,028,859 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Chalco Energy Co., Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,384,398 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Ningxia Energy | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 5,025,800 | ||
Ownership interest in subsidiary (in percent) | 70.82% | 70.82% | |
Non-controlling interests (in percent) | 29.18% | 29.18% | 29.18% |
Guizhou Huajin | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,000,000 | ||
Ownership interest in subsidiary (in percent) | 60.00% | 60.00% | |
Chalco Zhengzhou Research Institute of Non-ferrous Metal Co., Ltd | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 214,858 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Chalco Shandong | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 4,052,847 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Zhongzhou Aluminum | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 5,071,235 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
China Aluminum Logistics Group Corporation Co., Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 964,291 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Xinghua Technology | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 588,182 | ||
Ownership interest in subsidiary (in percent) | 33.00% | 33.00% | |
Indirect ownership interest in subsidiary (in percent) | 33.00% | 33.00% | |
Chinalco Shanghai | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 968,300 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Shanxi Huarun | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,641,750 | ||
Ownership interest in subsidiary (in percent) | 40.00% | 40.00% | |
Guizhou Huaren | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,200,000 | ||
Ownership interest in subsidiary (in percent) | 40.00% | 40.00% | |
Non-controlling interests (in percent) | 60.00% | 60.00% | 60.00% |
Chinalco Materials Co. Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,000,000 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of preparation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Current assets (liabilities) | $ (2,517,016) | ¥ (16,424,000) | ¥ (20,501,636) |
Unutilized banking facilities | 156,318,000 | ||
Unutilized banking facilities subject to renewal | 130,371,000 | ||
Unutilized banking facilities, renewal term | 12 months | ||
Amount is recognized in consideration for goodwill | ¥ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | ||
Monthly contributions (as percent of salary) | 16% | 17% |
Lease threshold considered to be of low value | ¥ 30,000 | |
Buildings | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 50 years | |
Other intangible assets mainly include profit sharing rights of Maochang mine | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, intangible assets (in years) | 22 years 6 months | |
Minimum | Land use rights | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 40 years | |
Minimum | Mining rights | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, intangible assets (in years) | 3 years | |
Maximum | Land use rights | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 70 years | |
Useful life, leases (in years) | 50 years | |
Maximum | Mining rights | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, intangible assets (in years) | 30 years | |
Maximum | Computer software | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, intangible assets (in years) | 10 years | |
Buildings | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 8 years | |
Useful life, leases (in years) | 2 years | |
Buildings | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 45 years | |
Useful life, leases (in years) | 20 years | |
Machinery | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 3 years | |
Useful life, leases (in years) | 2 years | |
Machinery | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 30 years | |
Useful life, leases (in years) | 10 years | |
Transportation facilities | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 6 years | |
Transportation facilities | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 10 years | |
Office and other equipment | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 3 years | |
Office and other equipment | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, properties (in years) | 10 years | |
Land use rights | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Useful life, leases (in years) | 10 years |
SIGNIFICANT ACCOUNTING JUDGEM_3
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)director | Dec. 31, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2018CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Net carrying amount of property, plant and equipment | $ 15,423,472 | ¥ 103,408,976 | ¥ 100,638,000 | ¥ 99,608,295 |
Carrying value of goodwill | ¥ | ¥ 3,510,000 | |||
Yinxing Energy | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 40.23% | |||
Ownership interest held by others (in percent) | 59.77% | |||
Guizhou Huaren | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 40.00% | |||
Non-controlling interests (in percent) | 60.00% | 60.00% | ||
Ownership interest in subsidiary (in percent) | 40.00% | |||
Shanxi Zhongrun | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 40.00% | |||
Yunnan Aluminium Co | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 10.04% | |||
Number of directors can be appointed | 1 | |||
Total number of directors | 11 | |||
Chalco Resources | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 6.68% | |||
Number of directors can be appointed | 1 | |||
Total number of directors | 5 | |||
Chinalco Capital | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 14.71% | |||
Number of directors can be appointed | 1 | |||
Total number of directors | 3 | |||
New Aluminum Power | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 16.00% | |||
Number of directors can be appointed | 1 | |||
Total number of directors | 9 | |||
Inner Mongolia Qiliugou | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
Ownership interest in associate (in percent) | 14.29% | |||
Number of directors can be appointed | 1 | |||
Total number of directors | 7 |
SIGNIFICANT ACCOUNTING JUDGEM_4
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES - Key macroeconomic parameters (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Within 1 year | Basic | |
key macroeconomic parameters | |
Growth rate of gross GDP growth rate | 8.83% |
Consumer Price Index Growth Rate | 1.33% |
Within 1 year | Negative | |
key macroeconomic parameters | |
Growth rate of gross GDP growth rate | 8.39% |
Consumer Price Index Growth Rate | 1.26% |
Within 1 year | Positive | |
key macroeconomic parameters | |
Growth rate of gross GDP growth rate | 9.27% |
Consumer Price Index Growth Rate | 1.40% |
2022 and subsequent years | Basic | |
key macroeconomic parameters | |
Growth rate of gross GDP growth rate | 5.30% |
Consumer Price Index Growth Rate | 2.40% |
2022 and subsequent years | Negative | |
key macroeconomic parameters | |
Growth rate of gross GDP growth rate | 5.04% |
Consumer Price Index Growth Rate | 2.28% |
2022 and subsequent years | Positive | |
key macroeconomic parameters | |
Growth rate of gross GDP growth rate | 5.57% |
Consumer Price Index Growth Rate | 2.52% |
REVENUE AND SEGMENT INFORMATI_3
REVENUE AND SEGMENT INFORMATION - Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Revenue | ||||
Sales of goods | ¥ 184,077,018 | ¥ 188,752,179 | ¥ 179,785,704 | |
Rendering of services | 1,587,246 | 1,145,304 | 325,055 | |
Total revenue from contracts with customers (net of value-added tax) | 185,664,264 | 189,897,483 | 180,110,759 | |
Rental income | 329,989 | 317,915 | 240,153 | |
Total revenue | $ 28,504,866 | ¥ 185,994,253 | ¥ 190,215,398 | ¥ 180,350,912 |
REVENUE AND SEGMENT INFORMATI_4
REVENUE AND SEGMENT INFORMATION - Disaggregated revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregated revenue: | |||
Sales of goods | ¥ 184,077,018 | ¥ 188,752,179 | ¥ 179,785,704 |
Rendering of services | 1,587,246 | 1,145,304 | 325,055 |
Total revenue from contracts with customers (net of value-added tax) | 185,664,264 | 189,897,483 | 180,110,759 |
Sale of goods | 1,565,285 | 1,543,164 | |
Others | 73,541 | 36,158 | |
Revenue recognised that was included in contract liabilities at the beginning of the reporting period | 1,638,826 | 1,579,322 | |
Amounts expected to be rexognized allocated to remaining performance obligations | 1,582,199 | 1,764,584 | |
Within 1 year | |||
Disaggregated revenue: | |||
Amounts expected to be rexognized allocated to remaining performance obligations | 1,399,340 | 1,638,826 | |
2022 and subsequent years | |||
Disaggregated revenue: | |||
Amounts expected to be rexognized allocated to remaining performance obligations | 182,859 | 125,758 | |
Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 184,077,018 | 188,752,179 | |
Services transferred over time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | ¥ 1,587,246 | 1,145,304 | |
Minimum | |||
Disaggregated revenue: | |||
Period of remaining performance obligation | 1 year | ||
Maximum | |||
Disaggregated revenue: | |||
Period of remaining performance obligation | 10 years | ||
Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | ¥ 177,022,432 | 184,121,468 | |
Outside of Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 8,641,832 | 5,776,015 | |
Operating segment | |||
Disaggregated revenue: | |||
Inter-segment revenue | 71,303,112 | ||
Inter-segment elimination | |||
Disaggregated revenue: | |||
Sales of goods | (69,122,016) | (67,969,391) | |
Rendering of services | (2,181,096) | (1,578,779) | |
Inter-segment revenue | 69,548,170 | 68,037,641 | |
Total revenue from contracts with customers (net of value-added tax) | (71,303,112) | (69,548,170) | |
Inter-segment elimination | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | (69,122,016) | (67,969,391) | |
Inter-segment elimination | Services transferred over time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | (2,181,096) | (1,578,779) | |
Inter-segment elimination | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | (71,303,112) | (69,548,170) | |
Alumina | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 42,295,806 | 43,690,995 | |
Inter-segment revenue | (29,436,854) | (29,573,401) | (29,392,495) |
Total revenue from contracts with customers (net of value-added tax) | 42,295,806 | 43,690,995 | |
Alumina | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 42,295,806 | 43,690,995 | |
Alumina | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 42,295,806 | 43,690,995 | |
Primary aluminum | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 51,729,483 | 49,043,864 | |
Inter-segment revenue | (11,458,500) | (11,694,382) | (12,457,863) |
Total revenue from contracts with customers (net of value-added tax) | 51,729,483 | 49,043,864 | |
Primary aluminum | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 51,729,483 | 49,043,864 | |
Primary aluminum | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 51,729,483 | 49,043,864 | |
Energy | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 7,184,216 | 7,335,347 | |
Inter-segment revenue | (243,788) | (236,136) | (198,337) |
Total revenue from contracts with customers (net of value-added tax) | 7,184,216 | 7,335,347 | |
Energy | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 7,184,216 | 7,335,347 | |
Energy | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 7,184,216 | 7,335,347 | |
Trading | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 151,540,471 | 156,158,740 | |
Rendering of services | 3,768,342 | 2,724,083 | |
Inter-segment revenue | (30,058,138) | (27,877,188) | (25,775,920) |
Total revenue from contracts with customers (net of value-added tax) | 155,308,813 | 158,882,823 | |
Trading | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 151,540,471 | 156,158,740 | |
Trading | Operating segment | Services transferred over time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 3,768,342 | 2,724,083 | |
Trading | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 146,666,981 | 153,106,808 | |
Trading | Operating segment | Outside of Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 8,641,832 | 5,776,015 | |
Corporate and other operating segments | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 449,058 | 492,624 | |
Inter-segment revenue | (105,832) | (167,063) | ¥ (213,026) |
Total revenue from contracts with customers (net of value-added tax) | 449,058 | 492,624 | |
Corporate and other operating segments | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | 449,058 | 492,624 | |
Corporate and other operating segments | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers (net of value-added tax) | ¥ 449,058 | ¥ 492,624 |
REVENUE AND SEGMENT INFORMATI_5
REVENUE AND SEGMENT INFORMATION - Information about operating segments results (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)segment | Dec. 31, 2020CNY (¥)segment | Dec. 31, 2019CNY (¥)segment | Dec. 31, 2018CNY (¥)segment | Dec. 31, 2020CNY (¥) | |
Segment information | |||||
Number of reportable operating segments | segment | 5 | 5 | 5 | 5 | |
Total revenue | $ 28,504,866 | ¥ 185,994,253 | ¥ 190,215,398 | ¥ 180,350,912 | |
Total revenue from contracts with customers (net of value-added tax) | 185,664,264 | 189,897,483 | 180,110,759 | ||
Segment profit/(loss) before income tax | 330,301 | 2,155,217 | 2,118,961 | 2,272,555 | |
Income tax expense | (89,224) | (582,188) | (628,376) | (826,366) | |
Profit for the year | 241,077 | 1,573,029 | 1,490,585 | 1,446,189 | |
Finance income | 34,777 | 226,921 | 261,193 | 492,322 | |
Finance costs | (677,476) | (4,420,528) | (4,921,541) | (4,882,692) | |
Share of profits and losses for the year | 27,663 | 180,502 | 270,115 | (199,452) | |
Share of the joint ventures associates profits and losses for the year | 22,335 | 145,737 | 48,767 | 39,335 | |
Depreciation of right-of-use assets | (767,553) | (1,075,825) | 108,152 | ||
Depreciation and amortization (excluding the amortization of right-of-use) | (7,910,802) | (7,714,418) | (7,953,965) | ||
(Losses)/gains on disposal of property, plant and equipment and intangible assets | 448,439 | 259,684 | 101,098 | ||
Dividends from other financial assets measured at fair value | 82,794 | 109,914 | |||
Unrealized Gains (Loss) On Futures Forward And Option Contracts Net | (10,394) | (9,851) | 100,967 | ||
Realized gain/(loss) on futures, forward and option contracts, net | 523,378 | 60,671 | 40,492 | ||
Other income | 139,551 | 84,611 | 135,367 | ||
Impairment losses on property, plant and equipment | (63,884) | (416,841) | (259,354) | (46,484) | |
Gain on disposal of subsidiaries (Note 40) | 11,305 | 261,187 | 3,517 | ||
Impairment losses | (416) | ||||
Change for impairment of inventories | (30,239) | 251,131 | (353,945) | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (978,834) | (171,016) | (107,956) | ||
Gain (loss) on disposal of associates | (1,904) | ||||
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 97,775 | ||||
(Loss)/gain on previously held equity interest remeasured at an acquisition-date fair value | 748,086 | ||||
Investments in joint ventures | 517,173 | 3,385,582 | 3,393,349 | ¥ 3,374,553 | |
Investments in associates | $ 1,405,887 | 9,512,401 | 6,363,462 | 9,173,410 | |
Capital expenditure in: | |||||
Intangible assets | 7,382 | 1,155,386 | 103,304 | ||
Additions | 76,779 | 1,247,858 | 2,838 | ||
Property, plant and equipment | 4,621,319 | 10,625,017 | 9,023,820 | ||
Revenue from external customer | |||||
Segment information | |||||
Total revenue | 185,994,253 | 190,215,398 | 180,350,912 | ||
Self-produced alumina | |||||
Segment information | |||||
Sales of self- produced products | 12,465,000 | 13,330,000 | 16,561,000 | ||
Self-produced primary aluminum | |||||
Segment information | |||||
Sales of self- produced products | 8,784,000 | 10,689,000 | 13,517,000 | ||
Self-produced other products | |||||
Segment information | |||||
Sales of self- produced products | 243,000 | 362,000 | 4,486,000 | ||
Operating segment | |||||
Segment information | |||||
Inter-segment revenue | 71,303,112 | ||||
Inter-segment elimination | |||||
Segment information | |||||
Inter-segment revenue | 69,548,170 | 68,037,641 | |||
Total revenue | (71,303,112) | (69,548,170) | (68,037,641) | ||
Total revenue from contracts with customers (net of value-added tax) | (71,303,112) | (69,548,170) | |||
Segment profit/(loss) before income tax | (68,699) | 213,085 | 198,103 | ||
Alumina | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (29,436,854) | (29,573,401) | (29,392,495) | ||
Total revenue | 42,382,097 | 43,899,982 | 44,150,937 | ||
Total revenue from contracts with customers (net of value-added tax) | 42,295,806 | 43,690,995 | |||
Segment profit/(loss) before income tax | 1,427,294 | 844,848 | 3,496,381 | ||
Finance income | 42,912 | 61,644 | 100,125 | ||
Finance costs | (826,521) | (651,238) | (399,344) | ||
Share of profits and losses for the year | 75,405 | 86,245 | 37,377 | ||
Share of the joint ventures associates profits and losses for the year | 4,930 | (6,319) | (1,141) | ||
Depreciation of right-of-use assets | (364,655) | (495,693) | 39,027 | ||
Depreciation and amortization (excluding the amortization of right-of-use) | (2,934,949) | (2,830,153) | (2,846,051) | ||
(Losses)/gains on disposal of property, plant and equipment and intangible assets | (15,274) | (576,669) | 53,116 | ||
Realized gain/(loss) on futures, forward and option contracts, net | (716) | ||||
Other income | 21,549 | 21,252 | 57,777 | ||
Impairment losses on property, plant and equipment | (23,135) | (8,742) | |||
Gain on disposal of subsidiaries (Note 40) | 118 | 7,671 | |||
Change for impairment of inventories | (121,286) | 69,740 | (54,463) | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (58,778) | 6,837 | 19,320 | ||
Investments in joint ventures | 1,076,085 | 989,840 | 1,076,085 | ||
Investments in associates | 83,424 | 89,734 | 88,356 | ||
Capital expenditure in: | |||||
Intangible assets | 2,157 | 209,366 | 99,089 | ||
Additions | 12,001 | 1,080,285 | 2,786 | ||
Property, plant and equipment | 2,317,271 | 6,490,041 | 2,564,003 | ||
Alumina | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 12,945,243 | 14,326,581 | 14,758,442 | ||
Primary aluminum | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (11,458,500) | (11,694,382) | (12,457,863) | ||
Total revenue | 51,889,084 | 49,089,019 | 53,802,172 | ||
Total revenue from contracts with customers (net of value-added tax) | 51,729,483 | 49,043,864 | |||
Segment profit/(loss) before income tax | 2,023,168 | 687,246 | (929,298) | ||
Finance income | 58,437 | 53,252 | 54,458 | ||
Finance costs | (1,364,606) | (1,328,730) | (1,131,622) | ||
Share of profits and losses for the year | 8 | ||||
Share of the joint ventures associates profits and losses for the year | (35,328) | 11,621 | 17,102 | ||
Depreciation of right-of-use assets | (234,387) | (338,975) | 41,175 | ||
Depreciation and amortization (excluding the amortization of right-of-use) | (2,937,761) | (3,235,356) | (2,954,801) | ||
(Losses)/gains on disposal of property, plant and equipment and intangible assets | 456,925 | 833,288 | 15,211 | ||
Other income | 11,087 | 716 | 38,220 | ||
Impairment losses on property, plant and equipment | (388,755) | (247,112) | |||
Change for impairment of inventories | 103,524 | 166,331 | (273,796) | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (14,417) | 1,088 | (9,406) | ||
Investments in associates | 574,385 | 558,759 | 539,058 | ||
Capital expenditure in: | |||||
Intangible assets | 3,546 | 949,013 | 753 | ||
Additions | 131,797 | ||||
Property, plant and equipment | 1,069,086 | 2,381,644 | 4,602,580 | ||
Primary aluminum | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 40,430,584 | 37,394,637 | 41,344,309 | ||
Energy | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (243,788) | (236,136) | (198,337) | ||
Total revenue | 7,184,216 | 7,345,971 | 7,235,273 | ||
Total revenue from contracts with customers (net of value-added tax) | 7,184,216 | 7,335,347 | |||
Segment profit/(loss) before income tax | (77,235) | 403,479 | 26,020 | ||
Finance income | 36,333 | 35,093 | 15,744 | ||
Finance costs | (995,572) | (1,064,769) | (1,047,285) | ||
Share of profits and losses for the year | 35,308 | (22,272) | (225,377) | ||
Share of the joint ventures associates profits and losses for the year | (17,905) | (32,660) | (52,368) | ||
Depreciation of right-of-use assets | (96,967) | (146,139) | 9,335 | ||
Depreciation and amortization (excluding the amortization of right-of-use) | (1,943,524) | (1,488,077) | (1,962,081) | ||
(Losses)/gains on disposal of property, plant and equipment and intangible assets | 3,989 | (3,982) | 24,780 | ||
Dividends from other financial assets measured at fair value | 1,000 | ||||
Realized gain/(loss) on futures, forward and option contracts, net | 60,671 | 2,855 | |||
Other income | 55,561 | 11,382 | 29,858 | ||
Impairment losses on property, plant and equipment | (7,450) | ||||
Gain on disposal of subsidiaries (Note 40) | 3,014 | ||||
Change for impairment of inventories | (15,642) | 34,136 | (7,884) | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (108,059) | (53,227) | (23,327) | ||
Gain (loss) on disposal of associates | (1,904) | ||||
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 1,000 | ||||
(Loss)/gain on previously held equity interest remeasured at an acquisition-date fair value | (3,177) | ||||
Investments in joint ventures | 79,199 | 435,867 | 334,763 | ||
Investments in associates | 362,757 | 2,064,425 | 396,454 | ||
Capital expenditure in: | |||||
Intangible assets | (5,062) | 2,754 | |||
Additions | 59,010 | 8,411 | |||
Property, plant and equipment | 881,810 | 1,454,659 | 1,610,442 | ||
Energy | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 6,940,428 | 7,109,835 | 7,036,936 | ||
Trading | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (30,058,138) | (27,877,188) | (25,775,920) | ||
Sales of self- produced products | 21,492,083 | 24,380,771 | 34,564,441 | ||
Sales of products sourced from external suppliers | 103,842,136 | 106,677,697 | 82,192,575 | ||
Total revenue | 155,392,357 | 158,935,656 | 142,532,936 | ||
Total revenue from contracts with customers (net of value-added tax) | 155,308,813 | 158,882,823 | |||
Segment profit/(loss) before income tax | 555,864 | 958,007 | 748,495 | ||
Finance income | 72,632 | 105,664 | 136,603 | ||
Finance costs | (170,937) | (224,292) | (367,003) | ||
Share of profits and losses for the year | 5,011 | 3,767 | 9,010 | ||
Share of the joint ventures associates profits and losses for the year | 38,683 | 36,579 | 19,375 | ||
Depreciation of right-of-use assets | (21,075) | (45,541) | 18,615 | ||
Depreciation and amortization (excluding the amortization of right-of-use) | (23,287) | (79,365) | (108,069) | ||
(Losses)/gains on disposal of property, plant and equipment and intangible assets | 2,147 | 7,271 | 20,036 | ||
Unrealized Gains (Loss) On Futures Forward And Option Contracts Net | (27,705) | (9,851) | 100,967 | ||
Realized gain/(loss) on futures, forward and option contracts, net | 675,442 | 47,601 | |||
Other income | 33,207 | 47,666 | 6,718 | ||
Impairment losses on property, plant and equipment | (4,951) | (3,500) | (39,034) | ||
Gain on disposal of subsidiaries (Note 40) | 2,738 | ||||
Change for impairment of inventories | 2,184 | (19,076) | (17,802) | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (414,342) | (122,420) | (84,922) | ||
Investments in joint ventures | 298,991 | 77,211 | 43,258 | ||
Investments in associates | 2,021,964 | 131,691 | 1,565,235 | ||
Capital expenditure in: | |||||
Intangible assets | 1,413 | 1,869 | 514 | ||
Additions | 2,875 | 27,365 | 52 | ||
Property, plant and equipment | 328,033 | 132,841 | 102,956 | ||
Trading | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 125,334,219 | 131,058,468 | 116,757,016 | ||
Corporate and other operating segments | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (105,832) | (167,063) | (213,026) | ||
Total revenue | 449,611 | 492,940 | 667,235 | ||
Total revenue from contracts with customers (net of value-added tax) | 449,058 | 492,624 | |||
Segment profit/(loss) before income tax | (1,705,175) | (987,704) | (1,267,146) | ||
Finance income | 16,607 | 5,540 | 185,392 | ||
Finance costs | (1,062,892) | (1,652,512) | (1,937,438) | ||
Share of profits and losses for the year | 64,778 | 202,375 | (20,470) | ||
Share of the joint ventures associates profits and losses for the year | 155,357 | 39,546 | 56,367 | ||
Depreciation of right-of-use assets | (50,469) | (49,477) | |||
Depreciation and amortization (excluding the amortization of right-of-use) | (71,281) | (81,467) | (82,963) | ||
(Losses)/gains on disposal of property, plant and equipment and intangible assets | 652 | (224) | (12,045) | ||
Dividends from other financial assets measured at fair value | 82,794 | 108,914 | |||
Unrealized Gains (Loss) On Futures Forward And Option Contracts Net | 17,311 | ||||
Realized gain/(loss) on futures, forward and option contracts, net | (152,064) | (9,248) | |||
Other income | 18,147 | 3,595 | 2,794 | ||
Gain on disposal of subsidiaries (Note 40) | 11,305 | 255,317 | (4,154) | ||
Change for impairment of inventories | 981 | ||||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (383,238) | (3,294) | (9,621) | ||
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 96,775 | ||||
(Loss)/gain on previously held equity interest remeasured at an acquisition-date fair value | 751,263 | ||||
Investments in joint ventures | 1,931,307 | 1,890,431 | 1,920,447 | ||
Investments in associates | 6,469,871 | 3,518,853 | ¥ 6,584,307 | ||
Capital expenditure in: | |||||
Intangible assets | 266 | 200 | 194 | ||
Additions | 2,893 | ||||
Property, plant and equipment | 25,119 | 165,832 | 143,839 | ||
Corporate and other operating segments | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | ¥ 343,779 | ¥ 325,877 | ¥ 454,209 |
REVENUE AND SEGMENT INFORMATI_6
REVENUE AND SEGMENT INFORMATION - Information about operating segments assets and liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Assets | |||
Assets | $ 29,869,990 | ¥ 194,901,684 | ¥ 203,137,491 |
Deferred tax assets | 227,009 | 1,481,235 | 1,522,729 |
Prepaid income tax | 116,574 | 93,093 | |
Liabilities | |||
Liabilities | 18,962,447 | 123,729,968 | 132,380,025 |
Deferred tax liabilities | 220,243 | 1,437,087 | 1,712,739 |
Income tax payable | $ 45,832 | 299,053 | 252,454 |
Other elimination | |||
Assets | |||
Elimination of inter-segment receivables | (360,498) | (106,985) | |
Operating segment | |||
Assets | |||
Assets | 254,246,772 | 259,780,250 | |
Liabilities | |||
Liabilities | 182,576,225 | 188,566,428 | |
Operating segment | Alumina | |||
Assets | |||
Assets | 87,409,820 | 90,584,165 | |
Liabilities | |||
Liabilities | 48,883,452 | 47,247,335 | |
Operating segment | Primary aluminum | |||
Assets | |||
Assets | 62,050,175 | 63,155,573 | |
Liabilities | |||
Liabilities | 39,204,713 | 38,588,473 | |
Operating segment | Energy | |||
Assets | |||
Assets | 39,671,083 | 38,886,172 | |
Liabilities | |||
Liabilities | 26,197,235 | 26,582,436 | |
Operating segment | Trading | |||
Assets | |||
Assets | 20,520,759 | 17,496,224 | |
Liabilities | |||
Liabilities | 12,815,610 | 9,376,820 | |
Operating segment | Corporate and other operating segments | |||
Assets | |||
Assets | 44,594,935 | 49,658,116 | |
Liabilities | |||
Liabilities | 55,475,215 | 66,771,364 | |
Inter-segment elimination | |||
Assets | |||
Elimination of inter-segment receivables | (60,582,399) | (58,151,596) | |
Liabilities | |||
Elimination of inter-segment payables | (60,582,397) | (58,151,596) | |
Corporate and other unallocated assets | |||
Assets | |||
Deferred tax assets | 1,481,235 | 1,522,729 | |
Prepaid income tax | 116,574 | 93,093 | |
Liabilities | |||
Deferred tax liabilities | 1,437,087 | 1,712,739 | |
Income tax payable | ¥ 299,053 | ¥ 252,454 |
REVENUE AND SEGMENT INFORMATI_7
REVENUE AND SEGMENT INFORMATION - Geographical information of the operating segments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disclosure of geographical areas [line items] | ||||
Non-current assets (excluding financial assets and deferred tax assets) | ¥ 145,562,300 | ¥ 150,545,371 | ||
Revenue | $ 28,504,866 | 185,994,253 | 190,215,398 | ¥ 180,350,912 |
PRC Government | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 46,262,000 | 40,567,000 | 32,852,000 | |
Mainland China | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets (excluding financial assets and deferred tax assets) | 142,671,962 | 147,876,838 | ||
Revenue | 177,352,421 | 184,439,383 | 171,134,353 | |
Outside of Mainland China | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets (excluding financial assets and deferred tax assets) | 2,890,338 | 2,668,533 | ||
Revenue | ¥ 8,641,832 | ¥ 5,776,015 | ¥ 9,216,559 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | ¥ 13,764,460 | ¥ 12,879,365 | ||
Additions | 7,382 | 1,155,386 | ¥ 103,304 | |
Disposal | (277,715) | (9) | ||
Impairment | (416) | |||
Amortization | (459,482) | (338,938) | (295,901) | |
Business combination | 89 | |||
Transfer from property, plant and equipment | 434,287 | 63,370 | ||
Currency translation differences | (20,301) | 5,286 | ||
Intangible assets and goodwill at end of period | $ 2,061,043 | 13,448,304 | 13,764,460 | 12,879,365 |
Goodwill | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 3,510,892 | 3,510,633 | ||
Currency translation differences | (1,035) | 259 | ||
Intangible assets and goodwill at end of period | 3,509,857 | 3,510,892 | 3,510,633 | |
Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 7,972,911 | 7,682,383 | ||
Additions | 467,640 | |||
Reclassification | 115,871 | |||
Disposal | (277,715) | |||
Amortization | (412,599) | (294,766) | ||
Transfer from property, plant and equipment | 149,544 | |||
Currency translation differences | (6,308) | 1,783 | ||
Intangible assets and goodwill at end of period | 7,425,833 | 7,972,911 | 7,682,383 | |
Mineral exploration rights | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,001,332 | 1,113,959 | ||
Reclassification | (115,871) | |||
Currency translation differences | (12,958) | 3,244 | ||
Intangible assets and goodwill at end of period | 988,374 | 1,001,332 | 1,113,959 | |
Computer software, Electrolytic aluminium production quota and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,279,325 | 572,390 | ||
Additions | 7,382 | 687,746 | ||
Disposal | (9) | |||
Impairment | (416) | |||
Amortization | (46,883) | (44,172) | ||
Business combination | 89 | |||
Transfer from property, plant and equipment | 284,743 | 63,370 | ||
Intangible assets and goodwill at end of period | 1,524,240 | 1,279,325 | ¥ 572,390 | |
Cost | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 16,168,939 | |||
Intangible assets and goodwill at end of period | 16,307,282 | 16,168,939 | ||
Cost | Goodwill | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 3,510,892 | |||
Intangible assets and goodwill at end of period | 3,509,857 | 3,510,892 | ||
Cost | Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 10,016,634 | |||
Intangible assets and goodwill at end of period | 9,876,722 | 10,016,634 | ||
Cost | Mineral exploration rights | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,001,332 | |||
Intangible assets and goodwill at end of period | 988,374 | 1,001,332 | ||
Cost | Computer software, Electrolytic aluminium production quota and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,640,081 | |||
Intangible assets and goodwill at end of period | 1,932,329 | 1,640,081 | ||
Accumulated amortization and impairment | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (2,404,479) | |||
Intangible assets and goodwill at end of period | (2,858,978) | (2,404,479) | ||
Accumulated amortization and impairment | Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (2,043,723) | |||
Intangible assets and goodwill at end of period | (2,450,889) | (2,043,723) | ||
Accumulated amortization and impairment | Computer software, Electrolytic aluminium production quota and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (360,756) | |||
Intangible assets and goodwill at end of period | ¥ (408,089) | ¥ (360,756) |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization expenses of intangible assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Information about reconciliation of changes in intangible assets and goodwill | |||
Amortization | ¥ 459,482 | ¥ 338,938 | ¥ 295,901 |
Intangible assets | 960 | 757,269 | |
Cost of sales | |||
Information about reconciliation of changes in intangible assets and goodwill | |||
Amortization | 371,616 | 294,766 | 265,108 |
General and administrative expenses | |||
Information about reconciliation of changes in intangible assets and goodwill | |||
Amortization | 87,866 | 44,172 | ¥ 30,793 |
Mining rights | |||
Information about reconciliation of changes in intangible assets and goodwill | |||
Mining rights carrying value | ¥ 40,000 | ¥ 51,000 | |
Carrying value to total asset value (as a percent) | 0.02% | 0.02% |
INTANGIBLE ASSETS - Impairment
INTANGIBLE ASSETS - Impairment testing of goodwill (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Groups of CGUs according to operating segments | ||
Goodwill | ¥ 3,510,000 | |
Pre-tax cash flow projections period approved by management | 5 years | |
Estimated growth rate for cash flows beyond approved period | 2.00% | 2.00% |
Pre-tax rate that reflects specific risks related to CGUs and groups of CGUs as discount rate | 12.62% | 12.62% |
Impairment of goodwill | ¥ 0 | ¥ 0 |
Alumina | ||
Groups of CGUs according to operating segments | ||
Goodwill | 1,368,331 | 1,369,366 |
Alumina | Guangxi Branch | ||
Groups of CGUs according to operating segments | ||
Goodwill | 189,419 | 189,419 |
Alumina | PT. Nusapati Prima | ||
Groups of CGUs according to operating segments | ||
Goodwill | 14,963 | 15,998 |
Alumina | Shanxi Huaxing | ||
Groups of CGUs according to operating segments | ||
Goodwill | 1,163,949 | 1,163,949 |
Primary aluminum | ||
Groups of CGUs according to operating segments | ||
Goodwill | 2,141,526 | 2,141,526 |
Primary aluminum | Qinghai Branch | ||
Groups of CGUs according to operating segments | ||
Goodwill | 217,267 | 217,267 |
Primary aluminum | Lanzhou Aluminum Co,. Ltd | ||
Groups of CGUs according to operating segments | ||
Goodwill | ¥ 1,924,259 | ¥ 1,924,259 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | ¥ 103,408,976 | ¥ 99,608,295 | ||
Transfer to intangible assets (Note 6) | (434,287) | (63,370) | ||
Transfer from right-of-use assets and non-current assets | 1,982,812 | 1,674,260 | ||
Transfer to investment properties (Note 8) | (78,135) | (179,564) | ||
Transfer to other non-current assets | (38,430) | |||
Transfer to right-of-use assets (Note 20) | (885,141) | (107,863) | ||
Additions | 4,621,319 | 10,625,017 | ||
Business combination | 53,601 | |||
Government grants | (42,322) | (76,223) | ||
Disposal of subsidiaries | (162,792) | |||
Disposals | (380,897) | (548,909) | ||
Depreciation | (7,152,170) | (7,100,776) | ||
Impairment losses on property, plant and equipment | $ (63,884) | (416,841) | (259,354) | ¥ (46,484) |
Currency translation differences | (332) | 255 | ||
Property, plant and equipment at end of period | $ 15,423,472 | 100,638,000 | 103,408,976 | 99,608,295 |
Transfer from right-of-use assets | 1,664,000 | |||
Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 177,474,231 | |||
Property, plant and equipment at end of period | 185,267,987 | 177,474,231 | ||
Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (74,065,255) | |||
Property, plant and equipment at end of period | (84,629,834) | (74,065,255) | ||
Buildings | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 40,777,331 | 38,748,649 | ||
Reclassifications and internal transfers | 3,301,076 | 3,869,147 | ||
Transfer to investment properties (Note 8) | (78,135) | (179,564) | ||
Transfer to right-of-use assets (Note 20) | (140,254) | (107,368) | ||
Additions | 296,395 | 576,107 | ||
Business combination | 1,290 | |||
Government grants | (1,646) | (7,211) | ||
Disposal of subsidiaries | (85,851) | |||
Disposals | (120,386) | (79,280) | ||
Depreciation | (1,689,768) | (1,852,041) | ||
Impairment losses on property, plant and equipment | (80,641) | (105,346) | ||
Currency translation differences | (103) | 89 | ||
Property, plant and equipment at end of period | 42,265,159 | 40,777,331 | 38,748,649 | |
Buildings | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 60,216,498 | |||
Property, plant and equipment at end of period | 63,188,254 | 60,216,498 | ||
Buildings | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (19,439,167) | |||
Property, plant and equipment at end of period | (20,923,095) | (19,439,167) | ||
Machinery | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 49,487,287 | 47,847,491 | ||
Reclassifications and internal transfers | 7,114,160 | 5,125,998 | ||
Transfer from right-of-use assets and non-current assets | 1,982,812 | 1,674,260 | ||
Transfer to right-of-use assets (Note 20) | (495) | |||
Additions | 182,427 | 636,555 | ||
Business combination | 52,357 | |||
Government grants | (40,676) | (69,012) | ||
Disposal of subsidiaries | (73,432) | |||
Disposals | (173,789) | (378,817) | ||
Depreciation | (5,315,869) | (5,121,970) | ||
Impairment losses on property, plant and equipment | (326,444) | (153,394) | ||
Currency translation differences | (183) | 103 | ||
Property, plant and equipment at end of period | 52,962,082 | 49,487,287 | 47,847,491 | |
Machinery | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 101,630,516 | |||
Property, plant and equipment at end of period | 114,359,882 | 101,630,516 | ||
Machinery | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (52,143,229) | |||
Property, plant and equipment at end of period | (61,397,800) | (52,143,229) | ||
Transportation facilities | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 429,581 | 537,300 | ||
Reclassifications and internal transfers | 809,433 | (29,181) | ||
Additions | 48,607 | 47,527 | ||
Business combination | (18) | |||
Disposal of subsidiaries | (3,270) | |||
Disposals | (27,145) | (19,672) | ||
Depreciation | (96,999) | (103,126) | ||
Impairment losses on property, plant and equipment | (125) | (14) | ||
Currency translation differences | (27) | 17 | ||
Property, plant and equipment at end of period | 1,163,307 | 429,581 | 537,300 | |
Transportation facilities | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 2,284,564 | |||
Property, plant and equipment at end of period | 2,844,604 | 2,284,564 | ||
Transportation facilities | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (1,854,983) | |||
Property, plant and equipment at end of period | (1,681,297) | (1,854,983) | ||
Office and other equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 354,825 | 159,291 | ||
Reclassifications and internal transfers | 47,546 | 207,546 | ||
Additions | 10,659 | 12,944 | ||
Business combination | (28) | |||
Disposal of subsidiaries | (239) | |||
Disposals | (918) | (939) | ||
Depreciation | (49,534) | (23,639) | ||
Impairment losses on property, plant and equipment | (558) | (185) | ||
Currency translation differences | (19) | 46 | ||
Property, plant and equipment at end of period | 361,973 | 354,825 | 159,291 | |
Office and other equipment | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 830,866 | |||
Property, plant and equipment at end of period | 869,252 | 830,866 | ||
Office and other equipment | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (476,041) | |||
Property, plant and equipment at end of period | (507,279) | (476,041) | ||
Construction in progress | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 12,359,952 | 12,315,564 | ||
Reclassifications and internal transfers | (11,272,215) | (9,173,510) | ||
Transfer to intangible assets (Note 6) | (434,287) | (63,370) | ||
Transfer to other non-current assets | (38,430) | |||
Transfer to right-of-use assets (Note 20) | (744,887) | |||
Additions | 4,083,231 | 9,351,884 | ||
Disposals | (58,659) | (70,201) | ||
Impairment losses on property, plant and equipment | (9,073) | (415) | ||
Property, plant and equipment at end of period | 3,885,632 | 12,359,952 | ¥ 12,315,564 | |
Construction in progress | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 12,511,787 | |||
Property, plant and equipment at end of period | 4,005,995 | 12,511,787 | ||
Construction in progress | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (151,835) | |||
Property, plant and equipment at end of period | ¥ (120,363) | ¥ (151,835) |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Depreciation expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | ¥ 7,152,170 | ¥ 7,100,776 | ¥ 7,505,687 | ||
Net carrying amount of property, plant and equipment | 103,408,976 | 99,608,295 | $ 15,423,472 | ¥ 100,638,000 | |
Interest attributable to the construction of property, plant and equipment | |||||
Less: interest expense capitalized in property, plant and equipment | ¥ 123,571 | 289,499 | ¥ 517,589 | ||
Additional information | |||||
Carrying value of temporarily idle property, plant and equipment | 952,000 | 750,000 | |||
Property, plant and equipment, pledged as security | ¥ 4,946,338 | 5,191,185 | |||
Minimum | |||||
Interest attributable to the construction of property, plant and equipment | |||||
Capitalization rate during the year | 4.00% | 4.00% | 4.54% | ||
Maximum | |||||
Interest attributable to the construction of property, plant and equipment | |||||
Capitalization rate during the year | 6.68% | 6.96% | 7.00% | ||
Cost of sales | |||||
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | ¥ 6,991,119 | ¥ 6,930,180 | ¥ 7,296,290 | ||
General and administrative expenses | |||||
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | 155,916 | 163,989 | 202,792 | ||
Selling and distribution expenses | |||||
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | ¥ 5,135 | 6,607 | 6,605 | ||
Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | (74,065,255) | (84,629,834) | |||
Buildings | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | 40,777,331 | 38,748,649 | 42,265,159 | ||
Buildings | Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | (19,439,167) | (20,923,095) | |||
In process applications, Ownership certificates of buildings | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | ¥ 7,315,000 | ¥ 7,616,000 | |||
Carrying value to total asset value (as a percent) | 3.60% | 3.65% | 3.65% | ||
Machinery | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | ¥ 49,487,287 | 47,847,491 | ¥ 52,962,082 | ||
Machinery | Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | (52,143,229) | (61,397,800) | |||
Construction in progress | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | 12,359,952 | ¥ 12,315,564 | 3,885,632 | ||
Construction in progress | Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying amount of property, plant and equipment | ¥ (151,835) | ¥ (120,363) |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Impairment tests for property, plant and equipment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Impairment loss on property, plant and equipment | $ 63,884 | ¥ 416,841 | ¥ 259,354 | ¥ 46,484 |
CGU | ||||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | ||||
Period of financial budgets approved by management | 5 years | 5 years | ||
Pre-tax and non-inflation rate that reflects specific risks related to CGUs as discount rates (as a percent) | 10.16% | 10.16% | 10.16% | |
Impairment loss on property, plant and equipment | ¥ 417,000 | ¥ 259,000 | ¥ 46,000 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Investment properties | ||||
Investment properties at beginning of period | ¥ 1,503,266 | ¥ 1,156,006 | ||
Additions | 44,063 | |||
Transfer from property, plant and equipment (note 7) | 78,135 | 179,564 | ||
Transfer from right-of-use assets (note 20) | 45,885 | 239,765 | ||
Disposals | (1,005) | (89,486) | ||
Depreciation | (24,405) | (26,559) | ¥ (22,229) | |
Impairment loss | (87) | |||
Investment properties at end of period | $ 245,498 | 1,601,876 | 1,503,266 | 1,156,006 |
Cost | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,668,048 | |||
Investment properties at end of period | 1,823,560 | 1,668,048 | ||
Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (164,782) | |||
Investment properties at end of period | (221,684) | (164,782) | ||
Buildings | ||||
Investment properties | ||||
Investment properties at beginning of period | 414,168 | 235,974 | ||
Additions | 44,063 | |||
Transfer from property, plant and equipment (note 7) | 78,135 | 179,564 | ||
Disposals | (36,949) | |||
Depreciation | (10,814) | (8,484) | ||
Investment properties at end of period | 481,489 | 414,168 | 235,974 | |
Buildings | At fair values | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,071,000 | |||
Investment properties at end of period | 926,000 | 1,071,000 | ||
Buildings | Cost | ||||
Investment properties | ||||
Investment properties at beginning of period | 508,705 | |||
Investment properties at end of period | 601,850 | 508,705 | ||
Buildings | Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (94,537) | |||
Investment properties at end of period | (120,361) | (94,537) | ||
Ownership certificates of investment properties | ||||
Investment properties | ||||
Investment properties at beginning of period | 255,000 | |||
Investment properties at end of period | ¥ 59,000 | ¥ 255,000 | ||
Carrying value to total asset value (as a percent) | 0.03% | 0.03% | 0.13% | |
Land use right | ||||
Investment properties | ||||
Investment properties at beginning of period | ¥ 1,089,098 | ¥ 920,032 | ||
Transfer from right-of-use assets (note 20) | 45,885 | 239,765 | ||
Disposals | (1,005) | (52,537) | ||
Depreciation | (13,591) | (18,075) | ||
Impairment loss | (87) | |||
Investment properties at end of period | 1,120,387 | 1,089,098 | ¥ 920,032 | |
Land use right | At fair values | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,269,000 | |||
Investment properties at end of period | 1,296,000 | 1,269,000 | ||
Land use right | Cost | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,159,343 | |||
Investment properties at end of period | 1,221,710 | 1,159,343 | ||
Land use right | Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (70,245) | |||
Investment properties at end of period | ¥ (101,323) | ¥ (70,245) |
INVESTMENTS IN JOINT VENTURES_3
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Joint ventures (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
As at January 1 | ¥ 3,385,582 | ¥ 3,393,349 | ||
Share of profits and losses for the year | $ 27,663 | 180,502 | 270,115 | ¥ (199,452) |
Share of changes in reserves | 3,046 | (7,811) | ||
Cash dividends declared | (480,397) | (50,314) | ||
As at December 31 | $ 517,173 | 3,374,553 | 3,385,582 | 3,393,349 |
Joint venture | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
As at January 1 | 3,385,582 | 3,393,349 | ||
Capital injections | 4,333 | 50,000 | ||
Disposal | (114,604) | |||
Share of profits and losses for the year | 180,502 | 270,115 | ||
Share of changes in reserves | 1,491 | 8,746 | ||
Cash dividends declared | (197,355) | (222,024) | ||
As at December 31 | 3,374,553 | 3,385,582 | ¥ 3,393,349 | |
Guangxi Huayin Aluminum Co., Ltd. | ||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||||
As at January 1 | 1,403,117 | |||
As at December 31 | 1,477,162 | ¥ 1,403,117 | ||
Registered and paid-in capital | ¥ 2,441,987 | |||
Ownership interest in joint venture (as a percent) | 33.00% | 33.00% | 33.00% | |
Voting power in joint venture (as a percent) | 33.00% | 33.00% | ||
Profit sharing in joint venture (as a percent) | 33.00% | 33.00% |
INVESTMENTS IN JOINT VENTURES_4
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Financial information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | |
Disclosure of joint ventures [line items] | |||||
Cash and cash equivalents | $ 1,476,039 | ¥ 7,778,853 | ¥ 9,631,152 | ||
Other current assets | 973,061 | 9,178,799 | 6,349,220 | ||
Total current assets | 7,081,026 | 48,701,467 | 46,203,692 | ||
Non-current assets | 22,788,964 | 154,436,024 | 148,697,992 | ||
Financial liabilities | 126,084,772 | 117,717,290 | |||
Total current liabilities | 9,598,042 | 69,203,103 | 62,627,226 | ||
Non-current liabilities | 9,364,405 | 63,176,922 | 61,102,742 | ||
Non-controlling interests | 2,580,798 | 16,085,487 | 16,839,706 | ||
Reconciliation to the Group's interest in the joint venture: | |||||
Carrying amount of the investment | 517,173 | 3,385,582 | ¥ 3,393,349 | 3,374,553 | |
Revenue | 28,504,866 | ¥ 185,994,253 | 190,215,398 | 180,350,912 | |
Gross profit | 2,057,147 | 13,422,889 | 12,147,269 | 13,240,697 | |
Profit before income tax | 330,301 | 2,155,217 | 2,118,961 | 2,272,555 | |
Income tax | 89,224 | 582,188 | 628,376 | 826,366 | |
Other comprehensive income | 18,334 | 119,632 | 10,850 | (132,478) | |
Total comprehensive income for the year | 259,411 | 1,692,661 | 1,501,435 | 1,313,711 | |
Share of profits and losses for the year | 27,663 | 180,502 | 270,115 | (199,452) | |
Dividend received | 12,689 | ¥ 82,794 | 97,775 | 109,914 | |
Reconciliation to the Group's interest in the associate: | |||||
Carrying amount of the investment | $ 1,405,887 | 9,512,401 | 6,363,462 | 9,173,410 | |
Guangxi Huayin Aluminum Co., Ltd. | |||||
Disclosure of joint ventures [line items] | |||||
Cash and cash equivalents | 261,447 | 247,680 | |||
Other current assets | 1,222,290 | 970,096 | |||
Total current assets | 1,483,737 | 1,217,776 | |||
Non-current assets | 5,249,101 | 5,361,592 | |||
Financial liabilities | 1,106,593 | 750,000 | |||
Other current liabilities | 960,077 | 772,700 | |||
Total current liabilities | 2,066,670 | 1,522,700 | |||
Non-current liabilities | 414,299 | 580,419 | |||
Net assets | ¥ 4,251,869 | 4,476,249 | |||
Reconciliation to the Group's interest in the joint venture: | |||||
Proportion of the Group's ownership | 33.00% | 33.00% | 33.00% | ||
Group's share of net assets of the joint venture | ¥ 1,403,117 | 1,477,162 | |||
Carrying amount of the investment | 1,403,117 | 1,477,162 | |||
Revenue | ¥ 4,631,737 | 5,226,893 | 5,173,801 | ||
Gross profit | 800,965 | 1,303,254 | 979,991 | ||
Interest income | 7,388 | 9,781 | 6,365 | ||
Depreciation and amortization | 531,512 | 525,109 | 509,556 | ||
Interest expenses | 51,855 | 63,351 | 77,438 | ||
Profit before income tax | 195,189 | 621,315 | 504,875 | ||
Income tax | 21,152 | 79,300 | 78,827 | ||
Total comprehensive income for the year | 174,037 | 542,015 | 426,048 | ||
Dividend received | 99,000 | 198,000 | ¥ 132,000 | ||
Yunnan Aluminium | |||||
Disclosure of joint ventures [line items] | |||||
Cash and cash equivalents | 4,052,271 | 1,186,778 | |||
Other current assets | 5,081,477 | 4,848,942 | |||
Total current assets | 9,133,748 | 6,035,720 | |||
Non-current assets | 35,706,818 | 39,960,249 | |||
Financial liabilities | 8,502,318 | 5,632,439 | |||
Other current liabilities | 12,012,348 | 11,728,170 | |||
Total current liabilities | 20,514,666 | 17,360,609 | |||
Non-current liabilities | 7,254,037 | 10,658,126 | |||
Net assets | 17,071,863 | 17,977,234 | |||
Non-controlling interests | 2,213,934 | 2,504,346 | |||
Reconciliation to the Group's interest in the joint venture: | |||||
Revenue | 29,567,864 | 24,283,623 | |||
Gross profit | 4,084,535 | 3,241,005 | |||
Interest income | 35,345 | 46,865 | |||
Depreciation and amortization | 1,571,308 | 1,381,066 | |||
Interest expenses | 649,600 | 945,786 | |||
Profit before income tax | 1,032,497 | 596,546 | |||
Income tax | 122,384 | 51,340 | |||
Other comprehensive income | (36,602) | 28,183 | |||
Total comprehensive income for the year | ¥ 873,511 | ¥ 573,389 | |||
Reconciliation to the Group's interest in the associate: | |||||
Proportion of the Group's ownership | 10.04% | 10.04% | 10.04% | ||
Group's share of net assets of the associate | ¥ 1,491,736 | 1,553,478 | |||
Carrying amount of the investment | ¥ 1,491,736 | ¥ 1,553,478 |
INVESTMENTS IN JOINT VENTURES_5
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Joint ventures not individually material (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of profits and losses for the year | $ 27,663 | ¥ 180,502 | ¥ 270,115 | ¥ (199,452) | |
Aggregate carrying amount of the Group's investments in joint ventures | $ 517,173 | 3,385,582 | 3,393,349 | ¥ 3,374,553 | |
Joint venture | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of profits and losses for the year | 180,502 | 270,115 | |||
Aggregate carrying amount of the Group's investments in joint ventures | 3,385,582 | ¥ 3,393,349 | 3,374,553 | ||
Aggregated individually immaterial joint ventures | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of profits and losses for the year | 121,120 | 91,250 | |||
Share of the joint ventures' total comprehensive income | ¥ 121,120 | 91,250 | |||
Aggregate carrying amount of the Group's investments in joint ventures | ¥ 1,870,538 | ¥ 1,897,391 |
INVESTMENTS IN JOINT VENTURES_6
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Associates (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Movements in investments in associates | ||||
As at January 1 | ¥ 9,512,401 | ¥ 6,363,462 | ||
Subsidiaries changed into an associate | 7,473 | 16,283 | ||
Capital reduction | (14,850) | (20,250) | ||
Share of the joint ventures associates profits and losses for the year | $ 22,335 | 145,737 | 48,767 | ¥ 39,335 |
Cash dividends declared | (480,397) | (50,314) | ||
Share of changes in reserves | 3,046 | (7,811) | ||
As at December 31 | 1,405,887 | 9,173,410 | 9,512,401 | 6,363,462 |
Total subscription amount | $ 1,145 | 7,473 | 2,653,244 | ¥ 266,300 |
Associates Other than Yunnan Aluminum and Yixin Aluminum | ||||
Movements in investments in associates | ||||
Capital injections | 729,368 | |||
Yunnan Aluminium | ||||
Movements in investments in associates | ||||
Investment made in associates | 1,491,736 | |||
Registered and paid-in capital | ¥ 3,128,207 | |||
Ownership interest in associate (in percent) | 10.04% | 10.04% | ||
Voting power in associate (as a percent) | 10.04% | 10.04% | ||
Profit sharing in associate (as a percent) | 10.04% | 10.04% | ||
Investment to Heqing Yixin Aluminum Industry Co., Ltd. | ||||
Movements in investments in associates | ||||
Investment made in associates | ¥ 941,160 | |||
Guangxi Huayin Aluminum Co., Ltd. | ||||
Movements in investments in associates | ||||
Registered and paid-in capital | ¥ 2,441,987 |
INVESTMENTS IN JOINT VENTURES_7
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Associates not individually material (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of the associates' profits | $ 22,335 | ¥ 145,737 | ¥ 48,767 | ¥ 39,335 | |
Aggregate carrying amount of the Group's investments in the associates | $ 1,405,887 | 9,512,401 | ¥ 6,363,462 | ¥ 9,173,410 | |
Investments in associates | 538,787 | 395,610 | |||
Associates | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Investments in associates | 539,000 | 396,000 | |||
Aggregate associates that are not individually material | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of the associates' profits | 83,518 | 48,767 | |||
Share of the associates' total comprehensive income | ¥ 83,518 | 48,767 | |||
Aggregate carrying amount of the Group's investments in the associates | ¥ 8,020,665 | ¥ 7,619,932 |
OTHER FINANCIAL ASSETS MEASUR_3
OTHER FINANCIAL ASSETS MEASURED AT FAIR VALUE (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | $ 233,977 | ¥ 1,526,703 | ¥ 2,239,251 | |
Dividend income | ¥ 82,000 | |||
Size Industry Investment Fund | ||||
Disclosure of financial assets [line items] | ||||
Repayment of capital from equity investment | ¥ 700,000 | |||
At fair values | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 1,526,703 | 2,239,251 | ||
At fair values | Listed equity investments | Dongxing securities Co., Ltd | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 8,812 | 8,853 | ||
At fair values | Unlisted Investments | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 1,517,891 | 2,230,398 | ||
At fair values | Unlisted Investments | Sanmenxia Dachang Mining Co., Ltd | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 20,921 | 20,905 | ||
At fair values | Unlisted Investments | Inner Mongolia Ganqimaodu Port Development Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 16,669 | 30,410 | ||
At fair values | Unlisted Investments | Yinchuan Economic and Technological Development Zone Investment Holding Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 17,234 | 20,000 | ||
At fair values | Unlisted Investments | China Color International Alumina Development Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 6,636 | 6,614 | ||
At fair values | Unlisted Investments | Luoyang Jianyuan Mining Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 4,975 | 4,960 | ||
At fair values | Unlisted Investments | NingXia Electric Power Trading Center Co., Ltd | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 4,305 | |||
At fair values | Unlisted Investments | Ningxia Ningdian Logistics Transportation Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 1,640 | 1,640 | ||
At fair values | Unlisted Investments | Chinalco Innovative Development Investment Company Limited | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 329,234 | 365,681 | ||
At fair values | Unlisted Investments | Size Industry Investment Fund | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 980,498 | 1,653,251 | ||
At fair values | Unlisted Investments | Fangchenggang Chisha Pier Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | 700 | 700 | ||
At fair values | Unlisted Investments | Xingxian Shengxing Highway Investment Management Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Other financial assets measured at fair value | ¥ 135,079 | ¥ 126,237 |
DEFERRED TAX - Assets (Details)
DEFERRED TAX - Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Movements in deferred tax assets: | ||||
As at January 1, | ¥ 1,522,729 | |||
As at December 31, | $ 227,009 | 1,481,235 | ¥ 1,522,729 | |
Temporary difference | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 1,579,689 | 1,597,042 | ||
Business combination under common control | ¥ 346 | |||
Acquisition of subsidiaries | 36 | 166 | ||
Credit/(charged) to profit or loss | (32,578) | (17,519) | ||
As at December 31, | 1,547,147 | 1,579,689 | 1,597,042 | |
Temporary difference | Previously Stated | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 1,596,696 | |||
As at December 31, | 1,596,696 | |||
Provision for impairment | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 445,322 | 385,914 | ||
Business combination under common control | 71 | |||
Acquisition of subsidiaries | 190 | |||
Credit/(charged) to profit or loss | 65,196 | 59,218 | ||
As at December 31, | 510,518 | 445,322 | 385,914 | |
Provision for impairment | Previously Stated | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 385,843 | |||
As at December 31, | 385,843 | |||
Accrued expenses | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 209,395 | 242,640 | ||
Business combination under common control | 270 | |||
Acquisition of subsidiaries | (31) | |||
Credit/(charged) to profit or loss | (99,810) | (33,214) | ||
As at December 31, | 109,585 | 209,395 | 242,640 | |
Accrued expenses | Previously Stated | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 242,370 | |||
As at December 31, | 242,370 | |||
Tax losses | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 576,190 | 616,237 | ||
Credit/(charged) to profit or loss | (105,811) | (40,047) | ||
As at December 31, | 470,379 | 576,190 | 616,237 | |
Tax losses | Previously Stated | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 616,237 | |||
As at December 31, | 616,237 | |||
Unrealized profit at consolidation | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 169,355 | 169,876 | ||
Credit/(charged) to profit or loss | 56,731 | (521) | ||
As at December 31, | 226,086 | 169,355 | 169,876 | |
Unrealized profit at consolidation | Previously Stated | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 169,876 | |||
As at December 31, | 169,876 | |||
Others | ||||
Movements in deferred tax assets: | ||||
As at January 1, | 179,427 | 182,375 | ||
Business combination under common control | 5 | |||
Acquisition of subsidiaries | 36 | 7 | ||
Credit/(charged) to profit or loss | 51,116 | (2,955) | ||
As at December 31, | ¥ 230,579 | 179,427 | 182,375 | |
Others | Previously Stated | ||||
Movements in deferred tax assets: | ||||
As at January 1, | ¥ 182,370 | |||
As at December 31, | ¥ 182,370 |
DEFERRED TAX - Liabilities (Det
DEFERRED TAX - Liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Movements in deferred tax liabilities: | |||
As at January 1, | ¥ 1,712,739 | ||
As at December 31, | $ 220,243 | 1,437,087 | ¥ 1,712,739 |
Temporary difference | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,769,699 | 1,866,846 | |
Exchange realignment | (1,406) | 416 | |
(Charged)/credited to other comprehensive income | (3,066) | 14,642 | |
Acquisition of a subsidiaries | 1,274 | ||
Credited/(charged) to profit or loss | (263,502) | (112,205) | |
As at December 31, | 1,502,999 | 1,769,699 | |
Deferred tax liability associated with investments in the Group's | 317,000 | 827,000 | |
Temporary difference | Previously Stated | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,769,699 | ||
As at December 31, | 1,769,699 | ||
Interest capitalization | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 38,007 | 43,832 | |
Credited/(charged) to profit or loss | (12,167) | (5,825) | |
As at December 31, | 25,840 | 38,007 | |
Fair value changes of financial assets | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 7,731 | 5,606 | |
(Charged)/credited to other comprehensive income | (3,066) | 14,642 | |
Credited/(charged) to profit or loss | 4,235 | (12,517) | |
As at December 31, | 8,900 | 7,731 | |
Fair value changes of financial assets | Previously Stated | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 7,731 | ||
As at December 31, | 7,731 | ||
Depreciation and amortization | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 23,873 | 32,489 | |
Credited/(charged) to profit or loss | 13,234 | (8,616) | |
As at December 31, | 37,107 | 23,873 | |
Fair value adjustments arising from acquisition of subsidiaries | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,700,088 | 1,784,919 | |
Exchange realignment | (1,406) | 416 | |
Acquisition of a subsidiaries | 1,274 | ||
Credited/(charged) to profit or loss | (268,804) | (85,247) | |
As at December 31, | ¥ 1,431,152 | ¥ 1,700,088 |
DEFERRED TAX - Balances (Detail
DEFERRED TAX - Balances (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
DEFERRED TAX | ||
Net deferred tax assets | ¥ 1,481,235 | ¥ 1,522,729 |
Net deferred tax liabilities | 1,437,087 | 1,712,739 |
Deferred tax assets not recognised for accumulated tax losses | 1,514,000 | 1,467,000 |
Accumulated tax losses not recognised for OTA | 6,593,510 | 6,210,282 |
Deferred tax assets not recognised for deductible temporary differences | 2,032,000 | 2,287,000 |
Deductible temporary differences not recognised for OTA | ¥ 8,848,000 | ¥ 9,160,000 |
DEFERRED TAX - Unrecognised tax
DEFERRED TAX - Unrecognised tax losses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Tax losses | ||
Unrecognised tax losses | ¥ 6,593,510 | ¥ 6,210,282 |
Within 1 year | ||
Tax losses | ||
Unrecognised tax losses | 690,646 | |
Between 1 and 2 years | ||
Tax losses | ||
Unrecognised tax losses | 213,992 | 958,188 |
Between 2 and 3 years | ||
Tax losses | ||
Unrecognised tax losses | 795,012 | 1,211,002 |
2023 | ||
Tax losses | ||
Unrecognised tax losses | 882,156 | 997,376 |
2024 | ||
Tax losses | ||
Unrecognised tax losses | 2,110,447 | ¥ 2,353,070 |
2025 | ||
Tax losses | ||
Unrecognised tax losses | ¥ 2,591,903 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
OTHER NON-CURRENT ASSETS | |||
Financial assets - Long-term receivables | ¥ 127,754 | ¥ 128,673 | |
Prepayment for mining rights | 809,722 | 813,822 | |
Long-term prepaid expenses | 654,291 | 650,062 | |
Deferred losses for sales and leaseback transactions | 396,368 | 766,546 | |
Others | 1,177,785 | 849,819 | |
Total non-financial assets | 3,038,166 | 3,080,249 | |
Total other non-current assets | $ 485,198 | ¥ 3,165,920 | ¥ 3,208,922 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Inventories | ||||
Total inventories | $ 3,043,181 | ¥ 19,856,754 | ¥ 19,515,641 | |
Cost | ||||
Inventories | ||||
Raw materials | 7,450,822 | 6,825,871 | ||
Work-in-progress | 7,290,838 | 7,847,599 | ||
Finished goods | 4,830,076 | 4,501,633 | ||
Spare parts | 789,136 | 842,734 | ||
Packaging materials and others | 25,709 | 57,870 | ||
Total inventories | 20,386,581 | 20,075,707 | ||
Provision for impairment | ||||
Inventories | ||||
Total inventories | ¥ (529,827) | ¥ (560,066) | ¥ (811,197) |
INVENTORIES - Movements in the
INVENTORIES - Movements in the provision for impairment of inventories (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Movements in the provision for impairment of inventories | |||
As at January 1 | ¥ (19,515,641) | ||
As at December 31 | $ (3,043,181) | (19,856,754) | ¥ (19,515,641) |
Inventories pledged for bank and other borrowings | 0 | 0 | |
Provision for impairment | |||
Movements in the provision for impairment of inventories | |||
As at January 1 | 560,066 | 811,197 | |
Provision for impairment of inventories | 1,492,153 | 1,503,406 | |
Disposal of subsidiaries | (772) | ||
Reversal arising from increase in net realizable value | (170,766) | (340,134) | |
Written off upon sales of inventories | (1,351,626) | (1,413,631) | |
As at December 31 | ¥ 529,827 | ¥ 560,066 |
TRADE RECEIVABLES AND NOTES R_3
TRADE RECEIVABLES AND NOTES RECEIVABLES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Trade receivables | ¥ 4,746,995 | ¥ 4,574,581 | ||
Notes receivable | 4,546,223 | 2,844,637 | ||
Less: provision for impairment | (933,563) | (715,597) | ||
Total trade and notes receivables | $ 1,424,247 | 9,293,218 | 7,419,218 | |
Notes receivable pledged | 1,499,260 | 667,190 | ||
Minimum | ||||
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Trade receivables term (in years) | 3 months | |||
Maximum | ||||
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Trade receivables term (in years) | 12 months | |||
Associates | ||||
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Total trade and notes receivables | 17,000 | 30 | ||
Joint venture | ||||
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Total trade and notes receivables | 800,000 | 788,000 | ||
USD | ||||
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Total trade and notes receivables | 685,000 | 1,111,000 | ||
Cost | ||||
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Trade receivables | 5,680,558 | 5,290,178 | ||
Provision for impairment | ||||
TRADE TRADE RECEIVABLES AND NOTES RECEIVABLES | ||||
Less: provision for impairment | ¥ (933,563) | ¥ (715,597) | ¥ (659,261) |
TRADE RECEIVABLES AND NOTES R_4
TRADE RECEIVABLES AND NOTES RECEIVABLES - Ageing analysis of trade receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
TRADE AND NOTES RECEIVABLES | |||
Less: impairment allowance | ¥ (933,563) | ¥ (715,597) | |
Trade receivables | 4,746,995 | 4,574,581 | |
Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 5,680,558 | 5,290,178 | |
Cost | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 2,978,123 | 2,923,616 | |
Cost | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 1,031,050 | 742,477 | |
Cost | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 183,288 | 377,836 | |
Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 1,488,097 | 1,246,249 | |
Provision for impairment | |||
TRADE AND NOTES RECEIVABLES | |||
Less: impairment allowance | ¥ (933,563) | ¥ (715,597) | ¥ (659,261) |
TRADE RECEIVABLES AND NOTES R_5
TRADE RECEIVABLES AND NOTES RECEIVABLES - Credit risk exposure (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | $ 1,424,247 | ¥ 9,293,218 | ¥ 7,419,218 |
Trade receivables | 4,746,995 | 4,574,581 | |
Less: provision for impairment | (933,563) | (715,597) | |
Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 5,680,558 | 5,290,178 | |
Cost | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 2,978,123 | 2,923,616 | |
Cost | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 1,031,050 | 742,477 | |
Cost | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 183,288 | 377,836 | |
Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 1,488,097 | ¥ 1,246,249 | |
Individually assessed | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 4,400,877 | ||
Less: provision for impairment | (733,367) | ||
Individually assessed | State Grid Ningxia Electric Power Company | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 2,077,715 | ||
Less: provision for impairment | ¥ (5,704) | ||
Expected credit loss rate | 0.27% | 0.27% | |
Individually assessed | China Aluminum ZiBo International Trading Co.,Ltd. | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 727,682 | ||
Individually assessed | Zhuhai Hongfan nonferrous metal Chemical Co., Ltd. | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 270,419 | ||
Less: provision for impairment | ¥ (270,419) | ||
Expected credit loss rate | 100.00% | 100.00% | |
Individually assessed | Wiseson Resources (Singapore) PTE., Ltd. | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 266,345 | ||
Less: provision for impairment | ¥ (266,345) | ||
Expected credit loss rate | 100.00% | 100.00% | |
Individually assessed | Aluminum Industry Co., Ltd., Luoyang, Henan | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 247,163 | ||
Less: provision for impairment | ¥ (10,005) | ||
Expected credit loss rate | 4.05% | 4.05% | |
Individually assessed | Xinjiang Jiarun Resources Holdings Co., Ltd. | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 230,189 | ||
Individually assessed | Inner Mongolia Power (Group) Co., Ltd. | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 214,471 | ||
Less: provision for impairment | ¥ (506) | ||
Expected credit loss rate | 0.24% | 0.24% | |
Individually assessed | Guizhou Jinpingguo Aluminum Rod Co., Ltd. | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 111,138 | ||
Less: provision for impairment | ¥ (65,946) | ||
Expected credit loss rate | 59.34% | 59.34% | |
Individually assessed | Others | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 255,755 | ||
Less: provision for impairment | ¥ (114,442) | ||
Expected credit loss rate | 44.75% | 44.75% | |
Individually assessed | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 4,400,877 | ||
Total | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | (200,196) | ||
Total | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 1,279,681 | ||
Alumina and primary aluminum | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | (124,720) | ||
Alumina and primary aluminum | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (7,104) | ||
Expected credit loss rate | 2.90% | 2.90% | |
Alumina and primary aluminum | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (12,084) | ||
Expected credit loss rate | 9.58% | 9.58% | |
Alumina and primary aluminum | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (2,325) | ||
Expected credit loss rate | 17.68% | 17.68% | |
Alumina and primary aluminum | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (103,207) | ||
Expected credit loss rate | 95.04% | 95.04% | |
Alumina and primary aluminum | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 493,253 | ||
Alumina and primary aluminum | Cost | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 245,345 | ||
Alumina and primary aluminum | Cost | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 126,165 | ||
Alumina and primary aluminum | Cost | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 13,153 | ||
Alumina and primary aluminum | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 108,590 | ||
Energy | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | (52,213) | ||
Energy | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (1,204) | ||
Expected credit loss rate | 0.52% | 0.52% | |
Energy | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (1,710) | ||
Expected credit loss rate | 5.18% | 5.18% | |
Energy | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (4,806) | ||
Expected credit loss rate | 17.06% | 17.06% | |
Energy | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (44,493) | ||
Expected credit loss rate | 94.50% | 94.50% | |
Energy | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 339,517 | ||
Energy | Cost | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 231,232 | ||
Energy | Cost | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 33,024 | ||
Energy | Cost | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 28,177 | ||
Energy | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 47,084 | ||
Trading | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | (14,498) | ||
Trading | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (9,753) | ||
Expected credit loss rate | 2.43% | 2.43% | |
Trading | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (110) | ||
Expected credit loss rate | 9.72% | 9.72% | |
Trading | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (4,635) | ||
Expected credit loss rate | 99.46% | 99.46% | |
Trading | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 407,059 | ||
Trading | Cost | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 401,267 | ||
Trading | Cost | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 1,132 | ||
Trading | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 4,660 | ||
Corporate and other operating segments | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | (8,765) | ||
Corporate and other operating segments | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (1,774) | ||
Expected credit loss rate | 7.85% | 7.85% | |
Corporate and other operating segments | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (635) | ||
Expected credit loss rate | 27.15% | 27.15% | |
Corporate and other operating segments | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (5,010) | ||
Expected credit loss rate | 37.61% | 37.61% | |
Corporate and other operating segments | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Less: provision for impairment | ¥ (1,346) | ||
Expected credit loss rate | 84.49% | 84.49% | |
Corporate and other operating segments | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 39,852 | ||
Corporate and other operating segments | Cost | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 22,600 | ||
Corporate and other operating segments | Cost | Between 1 and 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 2,339 | ||
Corporate and other operating segments | Cost | Between 2 and 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 13,320 | ||
Corporate and other operating segments | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 1,593 |
TRADE RECEIVABLES AND NOTES R_6
TRADE RECEIVABLES AND NOTES RECEIVABLES - Movements on the provision for impairment of trade receivables (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in other provisions | ||
Allowance account for credit losses of financial assets at beginning of period | ¥ 715,597 | |
Allowance account for credit losses of financial assets at end of period | 933,563 | ¥ 715,597 |
Provision for impairment | ||
Reconciliation of changes in other provisions | ||
Allowance account for credit losses of financial assets at beginning of period | 715,597 | 659,261 |
Provision for impairment | 403,633 | 237,504 |
Written off | (122,786) | (98,554) |
Reversal | (64,661) | (83,095) |
Others (Note) | 1,780 | 481 |
Allowance account for credit losses of financial assets at end of period | ¥ 933,563 | ¥ 715,597 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Financial assets | |||
Deposits paid to suppliers | ¥ 558,073 | ¥ 501,918 | |
Dividends receivable | 412,736 | 58,092 | |
Receivables from disposal of assets | 20,950 | 1,969,833 | |
Entrusted loans and loans receivable from third parties | 1,530,452 | 1,544,070 | |
Entrusted loans and loans receivable from related parties | 1,264,423 | 1,309,095 | |
Interest receivables | 39,531 | 40,936 | |
Recoverable reimbursement for freight charges | 283,460 | 223,884 | |
Receivable of electricity price adjustment | 494,595 | 619,206 | |
Receivable from disposal of aluminium capacity quota | 538,655 | ||
Other financial assets | 1,064,763 | 1,093,480 | |
Financial assets included in other current assets | 6,207,638 | 7,360,514 | |
Less: impairment allowance | (933,563) | (715,597) | |
Financial assets included in other current assets, net of provision for impairment | 3,983,127 | 5,663,779 | |
Advances to employees | 17,043 | 17,207 | |
Deductible input value added tax receivables | 1,379,288 | 2,424,648 | |
Prepaid income tax | 116,574 | 93,093 | |
Prepayments to related parties for purchases | 79,435 | 229,324 | |
Prepayments to suppliers for purchases and others | 725,776 | 635,363 | |
Other receivables | 49,598 | 118,100 | |
Other current assets, excluded financial assets | 2,367,714 | 3,517,735 | |
Less: impairment allowance | (1,621) | (2,715) | |
Other current assets, excluded financial assets, net of provision for impairment | 2,366,093 | 3,515,020 | |
Total other current assets | $ 973,061 | 6,349,220 | 9,178,799 |
USD | |||
Financial assets | |||
Other receivables | 152,000 | 37,000 | |
Other current assets | |||
Financial assets | |||
Less: impairment allowance | ¥ (2,224,511) | ¥ (1,696,735) |
OTHER CURRENT ASSETS - Analysis
OTHER CURRENT ASSETS - Analysis of financial assets included in other current assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | ¥ 6,207,638 | ¥ 7,360,514 |
Less: provision for impairment | (933,563) | (715,597) |
Financial assets included in other current assets, net of provision for impairment | 3,983,127 | 5,663,779 |
Within 1 year | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 2,386,289 | 1,443,338 |
Between 1 and 2 years | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 142,887 | 882,798 |
Between 2 and 3 years | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 191,228 | 151,974 |
Over 3 years | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 3,487,234 | 4,882,404 |
Other current assets | ||
OTHER CURRENT ASSETS | ||
Less: provision for impairment | ¥ (2,224,511) | ¥ (1,696,735) |
OTHER CURRENT ASSETS - Movement
OTHER CURRENT ASSETS - Movements in the provision for impairment of other current assets (Details) - Impairment on other current assets - Other current assets - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Provision for impairment of other current assets | ||
At beginning of year | ¥ 1,699,450 | ¥ 1,744,503 |
Provision for impairment | 656,873 | 42,897 |
Write off | (113,180) | (62,318) |
Reversal | (17,011) | (26,290) |
Others | 658 | |
As at December 31, | ¥ 2,226,132 | ¥ 1,699,450 |
OTHER CURRENT ASSETS - Financia
OTHER CURRENT ASSETS - Financial assets included in other current assets at amortized cost (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | ¥ 6,207,638 | ¥ 7,360,514 |
Expected credit losses | 933,563 | 715,597 |
Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 2,224,511 | 1,696,735 |
Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | 6,207,638 | 7,360,514 |
12-month expected credit losses | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 5,961 | |
12-month expected credit losses | Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | 2,218,891 | 1,524,602 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 14,966 | 82,070 |
Lifetime expected credit losses | Financial instruments not credit-impaired | Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | 578,213 | 4,097,994 |
Lifetime expected credit losses | Financial instruments credit-impaired | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 2,203,584 | 1,614,665 |
Lifetime expected credit losses | Financial instruments credit-impaired | Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | 3,410,534 | 1,737,918 |
Within 1 year | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | 2,386,289 | 1,443,338 |
Between 1 and 2 years | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | 142,887 | 882,798 |
Between 2 and 3 years | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | 191,228 | 151,974 |
Over 3 years | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Financial assets included in other current assets | ¥ 3,487,234 | ¥ 4,882,404 |
CASH AND CASH EQUIVALENTS AND_3
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH - Total (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |||
Restricted cash | ¥ 1,056,037 | ¥ 1,305,781 | |
Cash and cash equivalents | $ 1,476,039 | 9,631,152 | 7,778,853 |
Total cash and cash equivalents, and cash and cash equivalents restricted | ¥ 10,687,189 | ¥ 9,084,634 |
CASH AND CASH EQUIVALENTS AND_4
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH - Cash flow (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||||||
Cash and cash equivalents | $ 1,476,039 | ¥ 9,631,152 | ¥ 7,778,853 | |||
Bank overdrafts | (899,955) | |||||
Balances per consolidated statement of cash flows | $ 1,338,118 | ¥ 8,731,197 | $ 1,192,161 | ¥ 7,778,853 | ¥ 19,135,843 | ¥ 27,868,110 |
CASH AND CASH EQUIVALENTS AND_5
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH - Cash and cash equivalent and restricted cash denominated in foreign currencies (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalent and restricted cash of the group | ||
Cash and cash equivalents | ¥ 10,687,189 | ¥ 9,084,634 |
RMB | ||
Cash and cash equivalent and restricted cash of the group | ||
Cash and cash equivalents | 9,581,174 | 7,878,530 |
USD | ||
Cash and cash equivalent and restricted cash of the group | ||
Cash and cash equivalents | 1,095,713 | 1,195,720 |
HKD | ||
Cash and cash equivalent and restricted cash of the group | ||
Cash and cash equivalents | 2,763 | 4,423 |
EUR | ||
Cash and cash equivalent and restricted cash of the group | ||
Cash and cash equivalents | 2,055 | 1,943 |
Others | ||
Cash and cash equivalent and restricted cash of the group | ||
Cash and cash equivalents | ¥ 5,484 | ¥ 4,018 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - ¥ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
SHARE CAPITAL | ||
Shares authorized (in shares) | 17,022,672,951 | 17,022,672,951 |
Par value per share | ¥ 1 | ¥ 1 |
INTEREST BEARING LOANS AND BORR
INTEREST BEARING LOANS AND BORROWINGS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
INTEREST BEARING LOANS AND BORROWINGS | |||
Lease liabilities | ¥ 7,086,151 | ¥ 8,369,262 | |
Bank and other loans | 43,014,564 | 38,835,887 | |
Long-term loans and borrowings | 69,076,094 | 63,941,904 | |
Current portion of lease liabilities | (828,272) | (1,358,654) | |
Current portion of medium-term notes and bonds | (7,100,711) | ||
Current portion of long-term bank and other loans | (3,629,014) | (3,339,687) | |
Current portion of long-term loans and borrowings | (11,557,997) | (4,698,341) | |
Non-current portion of long-term loans and borrowings | $ 8,815,034 | 57,518,097 | 59,243,563 |
Secured | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Bank and other loans | 9,216,299 | 13,254,721 | |
Guaranteed | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Bank and other loans | 4,846,446 | 3,948,400 | |
Unsecured | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Medium-term notes and bonds | 18,975,379 | 16,736,755 | |
Bank and other loans | ¥ 28,951,819 | ¥ 21,632,766 |
INTEREST BEARING LOANS AND BO_2
INTEREST BEARING LOANS AND BORROWINGS - Short-term loans and borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Loans and borrowings | |||
Short-term bonds | ¥ 2,411,256 | ¥ 9,331,488 | |
Bank and other loans, current | 20,738,030 | 21,238,166 | |
Gold leasing arrangements | 7,018,609 | ||
Current portion of lease liabilities | 828,272 | 1,358,654 | |
Current portion of medium-term notes | 7,100,711 | ||
Current portion of long-term bank and other loans | 3,629,014 | 3,339,687 | |
Current portion of long term borrowings Including bonds | 13,969,253 | 21,048,438 | |
Interest-bearing loans and borrowings | $ 5,319,124 | 34,707,283 | 42,286,604 |
JPY | |||
Loans and borrowings | |||
Interest-bearing loans and borrowings | 15,000 | 17,000 | |
USD | |||
Loans and borrowings | |||
Interest-bearing loans and borrowings | 1,312,000 | 4,006,000 | |
Secured | |||
Loans and borrowings | |||
Bank and other loans, current | 863,738 | 465,000 | |
Guaranteed | |||
Loans and borrowings | |||
Bank and other loans, current | 50,000 | ||
Unsecured | |||
Loans and borrowings | |||
Bank and other loans, current | ¥ 19,824,292 | ¥ 20,773,166 |
INTEREST BEARING LOANS AND BO_3
INTEREST BEARING LOANS AND BORROWINGS - Other information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||
Oct. 31, 2020CNY (¥)T | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
INTEREST BEARING LOANS AND BORROWINGS | ||||
Short-term interest-bearing loans and borrowings | $ 5,319,124 | ¥ 34,707,283 | ¥ 42,286,604 | |
Bank and other loans, current | 20,738,030 | 21,238,166 | ||
Associates | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Short-term interest-bearing loans and borrowings | 0 | 0 | ||
Joint venture | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Short-term interest-bearing loans and borrowings | 0 | 0 | ||
Subsidiaries of Chinalco | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Short-term interest-bearing loans and borrowings | 4,229,000 | 4,181,000 | ||
Shandong Huayu | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Production of aluminum products | T | 135,000 | |||
Tender consideration | ¥ 539,000 | |||
JPY | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Short-term interest-bearing loans and borrowings | 15,000 | 17,000 | ||
USD | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Short-term interest-bearing loans and borrowings | 1,312,000 | 4,006,000 | ||
Secured | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Bank and other loans, current | 863,738 | ¥ 465,000 | ||
Secured | Shandong Huayu | ||||
INTEREST BEARING LOANS AND BORROWINGS | ||||
Bank and other loans, current | ¥ 583,000 |
INTEREST BEARING LOANS AND BO_4
INTEREST BEARING LOANS AND BORROWINGS - Maturity of long-term bank and other loans (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 43,014,564 | ¥ 38,835,887 |
Within 1 year | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 3,629,014 | 3,339,687 |
Between 1 and 2 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 6,702,687 | 7,525,775 |
Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 15,638,089 | 9,159,028 |
Over 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 17,044,774 | ¥ 18,811,397 |
Bank and other loans | ||
Maturity of long-term bank and other loans | ||
Weighted average interest (as a percent) | 4.90% | 5.20% |
Loans from banks and other financial institutions | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 42,999,864 | ¥ 38,818,493 |
Loans from banks and other financial institutions | Within 1 year | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 3,626,564 | 3,337,202 |
Loans from banks and other financial institutions | Between 1 and 2 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 6,700,237 | 7,523,290 |
Loans from banks and other financial institutions | Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 15,630,739 | 9,151,573 |
Loans from banks and other financial institutions | Over 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 17,042,324 | 18,806,428 |
Other loans | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 14,700 | 17,394 |
Other loans | Within 1 year | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 2,450 | 2,485 |
Other loans | Between 1 and 2 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 2,450 | 2,485 |
Other loans | Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 7,350 | 7,455 |
Other loans | Over 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 2,450 | ¥ 4,969 |
INTEREST BEARING LOANS AND BO_5
INTEREST BEARING LOANS AND BORROWINGS - Medium-term and long-term notes and bonds and private placement notes (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Medium-term notes and bonds and long-term bonds and private placement notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Medium-term notes and bonds | ¥ 18,975,379 | ¥ 16,736,755 |
2018 medium-term 5.84% note | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 2,000,000 | |
Interest rate (as a percent) | 5.84% | |
Medium-term notes and bonds | ¥ 1,998,802 | 1,992,339 |
2019 Medium-Term 4.31% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 2,000,000 | |
Interest rate (as a percent) | 4.31% | |
Medium-term notes and bonds | ¥ 1,985,264 | 1,982,228 |
2018 medium-term 4.66% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 1,100,000 | |
Interest rate (as a percent) | 4.66% | |
Medium-term notes and bonds | ¥ 1,099,284 | 1,098,218 |
2018 medium-term 5.06% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 900,000 | |
Interest rate (as a percent) | 5.06% | |
Medium-term notes and bonds | ¥ 898,807 | 898,315 |
2018 medium-term 4.30% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 1,400,000 | |
Interest rate (as a percent) | 4.30% | |
Medium-term notes and bonds | ¥ 1,398,160 | 1,397,319 |
2018 medium-term 4.57% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 1,600,000 | |
Interest rate (as a percent) | 4.57% | |
Medium-term notes and bonds | ¥ 1,597,071 | 1,596,192 |
2019 Medium-Term 3.84% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 2,000,000 | |
Interest rate (as a percent) | 3.84% | |
Medium-term notes and bonds | ¥ 1,999,196 | 1,998,604 |
2019 Medium-Term 3.50% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 1,000,000 | |
Interest rate (as a percent) | 3.50% | |
Medium-term notes and bonds | ¥ 1,997,265 | 1,997,097 |
2019 Medium-Term 4.99% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 900,000 | |
Interest rate (as a percent) | 4.99% | |
Medium-term notes and bonds | ¥ 999,623 | 999,462 |
2020 Medium-Term 3.04% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 900,000 | |
Interest rate (as a percent) | 3.04% | |
Medium-term notes and bonds | ¥ 897,972 | |
2020 Medium-Term 3.31% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 500,000 | |
Interest rate (as a percent) | 3.31% | |
Medium-term notes and bonds | ¥ 499,853 | |
2020 Medium-Term 3.07% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 1,000,000 | |
Interest rate (as a percent) | 3.07% | |
Medium-term notes and bonds | ¥ 999,617 | |
2018 Hong Kong dollar medium-term 5.25% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 2,785,840 | |
Interest rate (as a percent) | 5.25% | |
Medium-term notes and bonds | ¥ 2,604,465 | ¥ 2,776,981 |
INTEREST BEARING LOANS AND BO_6
INTEREST BEARING LOANS AND BORROWINGS - Short-term bank, other loans and short-term bonds (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Short-term bonds | ¥ 2,411,256 | ¥ 9,331,488 |
Short-term bank and other loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term bonds | ¥ 2,411,256 | ¥ 9,331,488 |
Short-term bank and other loans | Weighted average | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 3.46% | 4.29% |
2019 Ningxia short-term 3.97% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 300,000 | |
Interest rate (as a percent) | 3.97% | |
Short-term bonds | ¥ 300,000 | |
2019 short-term 2.45% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 1,000,000 | |
Interest rate (as a percent) | 2.45% | |
Short-term bonds | ¥ 1,008,161 | |
2019 short-term 2.63% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 2,000,000 | |
Interest rate (as a percent) | 2.63% | |
Short-term bonds | ¥ 2,013,127 | |
2019 short-term 2.00% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 3,000,000 | |
Interest rate (as a percent) | 2.00% | |
Short-term bonds | ¥ 3,008,384 | |
2019 short-term 2.30% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 3,000,000 | |
Interest rate (as a percent) | 2.30% | |
Short-term bonds | ¥ 3,001,816 | |
Short-term 1.40% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 500,000 | |
Interest rate (as a percent) | 1.40% | |
Short-term bonds | ¥ 501,781 | |
Short-term 2.30% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 1,000,000 | |
Interest rate (as a percent) | 2.30% | |
Short-term bonds | ¥ 1,002,925 | |
Short-term 1.20% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 500,000 | |
Interest rate (as a percent) | 1.20% | |
Short-term bonds | ¥ 500,553 | |
Short-term 2.46% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Face value | ¥ 400,000 | |
Interest rate (as a percent) | 2.46% | |
Short-term bonds | ¥ 405,997 |
INTEREST BEARING LOANS AND BO_7
INTEREST BEARING LOANS AND BORROWINGS - Guaranteed interest-bearing loans and borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | ¥ 43,014,564 | ¥ 38,835,887 |
Bank and other loans, current | 20,738,030 | 21,238,166 |
Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 4,846,446 | 3,948,400 |
Bank and other loans, current | 50,000 | |
Total | 4,896,446 | 3,948,400 |
Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 4,846,446 | 3,948,400 |
Ningxia Energy | Guaranteed | Short-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 50,000 | |
Ningxia Energy | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 1,134,400 | 1,274,400 |
Yinxing Energy | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 19,000 | 46,000 |
Lanzhou Aluminum Factory | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 144,000 | 150,000 |
Baotou Aluminum Co. Ltd and Baotou Communications Investment Group Co. Ltd | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 1,137,500 | 1,250,000 |
The Company and Hangzhou Jinjiang Group Limited Company | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 10,000 | |
Hangzhou Jinjiang | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 123,500 | |
Qingzhen Industrial Investment Co., Ltd. ("Qingzhen Investment") | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 47,250 | |
Guizhou Investment | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 47,250 | |
The Company | Guaranteed | Long-term loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | ¥ 2,411,546 | ¥ 1,000,000 |
LEASE - Lease contracts (Detail
LEASE - Lease contracts (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Land use right | Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 20 years |
Land use right | Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 30 years |
Machinery | Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 3 years |
Machinery | Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 5 years |
Motor vehicles | Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 2 years |
Motor vehicles | Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 5 years |
Other equipment | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 12 months |
LEASE - Carrying amount of righ
LEASE - Carrying amount of right-of-use and movement during the year (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | ¥ 15,890,437 | ¥ 17,976,851 | ||
Additions | 76,779 | 1,247,858 | ¥ 2,838 | |
Transfer from property, plant and equipment | 885,141 | |||
Transfer to property, plant and equipment | (1,663,686) | (1,674,260) | ||
Transfer to investment properties | (45,885) | (239,765) | ||
Government grants | (107,441) | |||
Contract modification | (55,813) | (182,865) | ||
Disposals | (15,792) | (52,668) | ||
Depreciation | (767,553) | (1,075,825) | 108,152 | |
Impairment losses | (15,790) | (1,448) | ||
Balance at the end | $ 2,189,707 | 14,287,838 | 15,890,437 | 17,976,851 |
Right of Use Assets Pledged as Security | 1,232,491 | 373,048 | ||
Buildings | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | 287,255 | 396,499 | ||
Additions | 15,023 | 21,203 | ||
Contract modification | (12,317) | (45,507) | ||
Depreciation | (54,792) | (84,940) | ||
Balance at the end | 235,169 | 287,255 | 396,499 | |
Machinery | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | 3,756,305 | 6,128,291 | ||
Additions | 8,831 | 11,606 | ||
Transfer to property, plant and equipment | (1,663,686) | (1,674,260) | ||
Government grants | (107,441) | |||
Depreciation | (321,464) | (601,891) | ||
Impairment losses | (15,790) | |||
Balance at the end | 1,764,196 | 3,756,305 | 6,128,291 | |
Land use right | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | 11,846,877 | 11,452,061 | ||
Additions | 52,925 | 1,215,049 | ||
Transfer from property, plant and equipment | 885,141 | |||
Transfer to investment properties | (45,885) | (239,765) | ||
Contract modification | (43,496) | (137,358) | ||
Disposals | (15,792) | (52,668) | ||
Depreciation | (391,297) | (388,994) | ||
Impairment losses | (1,448) | |||
Balance at the end | 12,288,473 | 11,846,877 | ¥ 11,452,061 | |
Carrying amount of land use rights in process of applying for certificates | ¥ 1,109,000 | ¥ 74,000 | ||
Carrying value of land parcels as a percent of total asset | 0.57% | 0.57% | 0.04% |
LEASE - Carrying amount of leas
LEASE - Carrying amount of lease liabilities and movement during the year (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities | ||
Lease liabilities | ¥ 8,369,262 | |
New leases | 54,109 | |
Lease modification | (55,814) | |
Accretion of interest recognized during the year | 466,796 | |
Payments | (1,748,202) | |
Lease liabilities | 7,086,151 | |
Current portion | 828,272 | ¥ 1,358,654 |
Non-current portion | ¥ 6,257,879 |
LEASE - Amount recognized in pr
LEASE - Amount recognized in profit and loss in relation to leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LEASE | |||
Interest on lease liabilities | ¥ 466,796 | ||
Depreciation charge of right-of-use assets | 767,553 | ¥ 1,075,825 | ¥ (108,152) |
Expense relating to short-term leases | 214,204 | ||
Expense relating to leases of low-value assets | 39,130 | ||
Total amount recognized in profit or loss | ¥ 1,487,683 |
LEASE (Details)
LEASE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LEASE | |||
Rental income recognized | ¥ 330 | ¥ 318 | ¥ 240 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Financial liabilities | |||||
Long-term payables for mining rights | ¥ 1,108,075 | ¥ 1,014,169 | |||
Other financial liabilities | 45,412 | 22,748 | |||
Financial liabilities included in other non-current liabilities | 1,153,487 | 1,036,917 | |||
Obligations in relation to early retirement schemes | 427,783 | 217,864 | |||
Deferred government grants | 245,916 | 182,221 | |||
Deferred gain relating to sales and leaseback agreements | 125,707 | 58,844 | |||
Contract liabilities | 125,758 | 182,859 | |||
Provision for rehabilitation | 131,248 | 316,812 | |||
Others | 10,721 | 152,041 | |||
Other non current liabilities excluding financial liabilities | 1,067,133 | 1,110,641 | |||
Other non current liabilities | 2,220,620 | $ 329,128 | ¥ 2,147,558 | ||
Percentage of forecasted increase in living expenses, social insurance and housing fund | 3.00% | 3.00% | |||
Retirement benefits under the Group's early retirement schemes | |||||
As at January 1, | ¥ 843,253 | 1,295,453 | |||
Provision made during the year (note 29) | 53,339 | 210,428 | ¥ 447,660 | ||
Interest costs | 11,582 | 18,260 | |||
Payment during the year | (410,840) | (680,888) | |||
As at December 31, | ¥ 497,334 | 843,253 | ¥ 1,295,453 | ||
Non-current | 427,783 | ¥ 217,864 | |||
Current (note 22) | ¥ 415,470 | ¥ 279,470 |
OTHER PAYABLES AND ACCRUED LI_3
OTHER PAYABLES AND ACCRUED LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Financial liabilities | |||
Payable for capital expenditures | ¥ 4,677,705 | ¥ 6,832,365 | |
Accrued interest | 533,382 | 494,341 | |
Payables withheld as guarantees and deposits | 1,748,356 | 1,346,361 | |
Dividends payable by subsidiaries to non-controlling shareholders | 289,791 | 518,360 | |
Consideration payable for investment projects | 23,740 | 141,740 | |
Current portion of payables for mining rights | 460,101 | 372,824 | |
Others | 1,254,375 | 1,085,516 | |
Financial liabilities included in other payables and accrued liabilities | 8,987,450 | 10,791,507 | |
Output value added tax on pending | 271,963 | 210,283 | |
Taxes other than income taxes payable | 797,251 | 696,407 | |
Accrued payroll and bonus | 71,486 | 21,902 | |
Staff welfare payables | 323,180 | 258,654 | |
Current portion of obligations in relation to early retirement schemes | 279,470 | 415,470 | |
Contribution payable for pension insurance | 22,935 | 20,386 | |
Others | 273 | 999 | |
Other payables and accrued liabilities, excluded financial liabilities | 1,766,558 | 1,624,101 | |
Total other payables and accrued liabilities | $ 1,648,123 | 10,754,008 | 12,415,608 |
USD | |||
Financial liabilities | |||
Total other payables and accrued liabilities | 92,000 | 825,000 | |
HKD | |||
Financial liabilities | |||
Total other payables and accrued liabilities | ¥ 160 | ¥ 250 |
TRADE AND NOTES PAYABLES (Detai
TRADE AND NOTES PAYABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
TRADE AND NOTES PAYABLES | |||
Trade payables | ¥ 9,972,937 | ¥ 7,882,265 | |
Notes payable | 5,467,922 | 4,726,541 | |
Total trade and notes payables | $ 2,366,415 | 15,440,859 | 12,608,806 |
USD | |||
TRADE AND NOTES PAYABLES | |||
Total trade and notes payables | ¥ 35,000 | ¥ 52,000 |
TRADE AND NOTES PAYABLES - AGEI
TRADE AND NOTES PAYABLES - AGEING ANALYSIS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
OTHER CURRENT LIABILITIES | |||
Trade and notes payables | $ 2,366,415 | ¥ 15,440,859 | ¥ 12,608,806 |
Within 1 year | |||
OTHER CURRENT LIABILITIES | |||
Trade and notes payables | 14,923,453 | 12,170,016 | |
Between 1 and 2 years | |||
OTHER CURRENT LIABILITIES | |||
Trade and notes payables | 210,587 | 229,221 | |
Between 2 and 3 years | |||
OTHER CURRENT LIABILITIES | |||
Trade and notes payables | 119,587 | 30,718 | |
Over 3 years | |||
OTHER CURRENT LIABILITIES | |||
Trade and notes payables | ¥ 187,232 | ¥ 178,851 |
PLEDGE OF ASSETS (Details)
PLEDGE OF ASSETS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
PLEDGE OF ASSETS | ||
Property, plant and equipment | ¥ 5,191,185 | ¥ 4,946,338 |
Right-of-use assets | 1,232,491 | 373,048 |
Intangible assets | 960 | 757,269 |
Notes receivable pledged | 1,499,260 | 667,190 |
Investments in associates | 395,610 | 538,787 |
Assets pledged as security | 8,319,506 | 7,282,632 |
Current portion of long-term loans and borrowings secured by contractual right to charge users for electricity generated in the future | 912,000 | 1,209,000 |
Non-current portion of long-term loans and borrowings secured by contractual right to charge users for electricity generated in the future | ¥ 5,976,000 | ¥ 10,265,000 |
EXPENSE BY NATURE (Details)
EXPENSE BY NATURE (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
EXPENSE BY NATURE | ||||
Purchase of inventories in relation to trading activities | ¥ 102,515,791 | ¥ 104,928,962 | ¥ 85,443,397 | |
Raw materials and consumables used, and changes in work-in-progress and finished goods | 32,987,302 | 35,573,467 | 43,203,349 | |
Power and utilities | 16,766,950 | 16,755,424 | 17,651,304 | |
Depreciation of right-of-use assets | 767,553 | 1,075,825 | (108,152) | |
Depreciation and amortization (other than depreciation of right-of-use assets) | 7,910,802 | 7,714,418 | 8,062,117 | |
Employee benefit expenses | 7,872,005 | 7,773,170 | 7,484,385 | |
Repairs and maintenance | 1,595,880 | 1,867,160 | 1,760,016 | |
Transportation and logistic expenses | 4,079,157 | 3,420,360 | 4,688,761 | |
Inventory impairment loss | 1,321,387 | 1,163,272 | 2,247,588 | |
Taxes other than income tax expense | 1,600,996 | 1,431,587 | 937,892 | |
Packaging expenses | 294,359 | 277,785 | 261,626 | |
Research and development expenses | $ 219,779 | 1,434,056 | 940,828 | 626,873 |
Audit services | 18,170 | 25,444 | 25,329 | |
Non-audit services | 700 | 2,388 | 1,370 | |
Other auditors | 12,436 | 5,505 | 4,153 | |
Others | 1,875,928 | 2,641,954 | 2,445,657 | |
Total - Expense by nature | ¥ 179,619,416 | ¥ 184,656,721 | ¥ 174,216,944 |
NET IMPAIRMENT LOSSES ON FINA_3
NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS | ||||
Impairment losses on trade and notes receivables (Note 14) | ¥ 338,972 | ¥ 154,409 | ¥ 44,078 | |
Impairment losses on other current assets (Note 15) | 639,862 | 16,607 | 63,878 | |
Total | $ 150,013 | ¥ 978,834 | ¥ 171,016 | ¥ 107,956 |
OTHER INCOME (Details)
OTHER INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
OTHER INCOME | ||||
Other income | $ 21,387 | ¥ 139,551 | ¥ 84,611 | ¥ 135,367 |
OTHER GAINS, NET (Details)
OTHER GAINS, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
OTHER GAINS, NET | ||||
Gain on disposal of subsidiaries (Note 40) | ¥ 11,305 | ¥ 261,187 | ¥ 3,517 | |
Realized and unrealized losses/(gains) on futures, option and forward contracts | 512,984 | 50,820 | 141,459 | |
Gain on disposal of property, plant and equipment and intangible assets, net (Note (2)) | 448,439 | 259,684 | 272,098 | |
Gain on acquisition of associates | 557,965 | |||
Gain on previously held equity interests remeasured at acquisition-date fair value | 748,086 | |||
Gain on disposal of investment in a joint venture | 159,514 | (1,904) | ||
Others | (68,856) | (41,661) | (238,156) | |
Other gains, net | $ 138,524 | ¥ 903,872 | ¥ 1,247,509 | ¥ 925,100 |
OTHER GAINS, NET - Additional i
OTHER GAINS, NET - Additional information (Details) ¥ in Millions | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Shandong Huayu | |
Gain on disposal of aluminum capacity quota | ¥ 539 |
Fushun Aluminum Co., Ltd | |
Gain (Loss) on disposal of property, plant and equipment and land use rights | ¥ (66) |
FINANCE INCOME_FINANCE COSTS (D
FINANCE INCOME/FINANCE COSTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
FINANCE INCOME/FINANCE COSTS | ||||
Finance income-interest income | $ (34,777) | ¥ (226,921) | ¥ (261,193) | ¥ (492,322) |
Interest expense | 3,986,264 | 4,665,537 | 5,202,835 | |
Less: Interest expense capitalised in property, plant and equipment | (123,571) | (289,499) | (517,589) | |
Interest expense, net of capitalised interest | 3,862,693 | 4,376,038 | 4,685,246 | |
Interest on lease liability and amortization of unrecognized finance expenses | 481,512 | 547,820 | 205,335 | |
Exchange losses/(gains), net | 76,323 | (2,317) | (7,889) | |
Finance costs | $ 677,476 | 4,420,528 | 4,921,541 | 4,882,692 |
Finance costs, net | ¥ 4,193,607 | ¥ 4,660,348 | ¥ 4,390,370 | |
Minimum | ||||
FINANCE INCOME/FINANCE COSTS | ||||
Capitalisation rate during the year | 4.00% | 4.00% | 4.00% | 4.54% |
Maximum | ||||
FINANCE INCOME/FINANCE COSTS | ||||
Capitalisation rate during the year | 6.68% | 6.68% | 6.96% | 7.00% |
EMPLOYEE BENEFIT EXPENSE (Detai
EMPLOYEE BENEFIT EXPENSE (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EMPLOYEE BENEFIT EXPENSE | |||
Salaries and bonuses | ¥ 5,322,387 | ¥ 4,939,758 | ¥ 4,671,230 |
Housing fund | 532,842 | 488,574 | 417,721 |
Staff welfare and other expenses | 1,955,447 | 2,035,931 | 1,910,184 |
Employment expense in relation to early retirement schemes (Note 21) | 53,339 | 210,428 | 447,660 |
Employment expenses in relation to termination benefits | 7,990 | 98,479 | 37,590 |
Total employee benefits expenses | ¥ 7,872,005 | ¥ 7,773,170 | ¥ 7,484,385 |
DIRECTORS' AND SUPERVISORS' R_3
DIRECTORS' AND SUPERVISORS' REMUNERATION (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
DIRECTORS' AND SUPERVISORS' REMUNERATION | |||
Fees | ¥ 683 | ¥ 780 | ¥ 756 |
Basic salaries, housing fund, other allowances and benefits in kind | 4,183 | 4,665 | 1,849 |
Pension costs | 20 | 513 | 234 |
Total remuneration | ¥ 4,886 | ¥ 5,958 | ¥ 2,839 |
DIRECTORS' AND SUPERVISORS' R_4
DIRECTORS' AND SUPERVISORS' REMUNERATION - Remuneration of each director and supervisor (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant related party transactions | |||
Fees | ¥ 683 | ¥ 780 | ¥ 756 |
Salaries | 4,183 | 4,665 | 1,849 |
Pension costs | 20 | 513 | 234 |
Total remuneration | 4,886 | 5,958 | 2,839 |
Executive Directors | |||
Significant related party transactions | |||
Salaries | 2,322 | 2,607 | 1,200 |
Pension costs | 112 | 249 | 144 |
Total remuneration | 2,434 | 2,856 | 1,344 |
Jiang Yinggang | |||
Significant related party transactions | |||
Salaries | 562 | 889 | 762 |
Pension costs | 31 | 88 | 90 |
Total remuneration | 593 | 977 | 852 |
He Zhihui | |||
Significant related party transactions | |||
Salaries | 866 | 885 | |
Pension costs | 37 | 73 | |
Total remuneration | 903 | 958 | |
Zhu Runzhou | |||
Significant related party transactions | |||
Salaries | 894 | 833 | 438 |
Pension costs | 44 | 88 | 54 |
Total remuneration | 938 | 921 | 492 |
Non-executive Directors | |||
Significant related party transactions | |||
Fees | 683 | 780 | 756 |
Total remuneration | 683 | 780 | 756 |
Wang Jun | |||
Significant related party transactions | |||
Fees | 50 | 150 | 150 |
Total remuneration | 50 | 150 | 150 |
Chen Lijie | |||
Significant related party transactions | |||
Fees | 211 | 210 | 202 |
Total remuneration | 211 | 210 | 202 |
Lie-A-Cheong Tai-Chong, David | |||
Significant related party transactions | |||
Fees | 211 | 210 | 202 |
Total remuneration | 211 | 210 | 202 |
Hu Shihai | |||
Significant related party transactions | |||
Fees | 211 | 210 | 202 |
Total remuneration | 211 | 210 | 202 |
Supervisors | |||
Significant related party transactions | |||
Salaries | 1,674 | 2,058 | 649 |
Pension costs | 95 | 264 | 90 |
Total remuneration | 1,769 | 2,322 | 739 |
Ou Xiaowu | |||
Significant related party transactions | |||
Salaries | 134 | ||
Pension costs | 7 | ||
Total remuneration | 141 | ||
Guan Xiaoguang | |||
Significant related party transactions | |||
Salaries | 770 | 710 | |
Pension costs | 44 | 88 | |
Total remuneration | 814 | 798 | |
Yue Xuguang | |||
Significant related party transactions | |||
Salaries | 770 | 770 | |
Pension costs | 44 | 88 | |
Total remuneration | ¥ 814 | 858 | |
Wu Zuoming | |||
Significant related party transactions | |||
Salaries | 578 | 649 | |
Pension costs | 88 | 90 | |
Total remuneration | ¥ 666 | ¥ 739 |
DIRECTORS' AND SUPERVISORS' R_5
DIRECTORS' AND SUPERVISORS' REMUNERATION - Remuneration of the directors and supervisors of the Company fell within following band (Details) | 12 Months Ended | ||
Dec. 31, 2020CNY (¥)Optionindividualemployee | Dec. 31, 2019CNY (¥)Optionindividual | Dec. 31, 2018CNY (¥)Optionindividual | |
Directors' and supervisors' remuneration | |||
Key management personnel compensation | ¥ 4,886,000 | ¥ 5,958,000 | ¥ 2,839,000 |
Number of directors and supervisors whose remuneration fell within Nil to RMB1,000,000 | individual | 14 | 14 | 12 |
Options granted to directors or supervisors of the Company | Option | 0 | 0 | 0 |
Emoluments paid to directors or supervisors | ¥ 0 | ¥ 0 | ¥ 0 |
Number of highest paid employees included in the emoluments paid to directors or supervisors | employee | 5 | ||
Minimum | |||
Directors' and supervisors' remuneration | |||
Key management personnel compensation | ¥ 0 | 0 | 0 |
Maximum | |||
Directors' and supervisors' remuneration | |||
Key management personnel compensation | ¥ 1,000,000 | ¥ 1,000,000 | ¥ 1,000,000 |
DIRECTORS' AND SUPERVISORS' R_6
DIRECTORS' AND SUPERVISORS' REMUNERATION - Five highest paid individuals (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥)directoremployee | Dec. 31, 2019CNY (¥)director | Dec. 31, 2018CNY (¥)director | |
Significant related party transactions | |||
Emoluments paid to key management personnel, number of highest paid employees | employee | 5 | ||
Number of directors among five highest paid employees | director | 3 | 3 | 1 |
Basic salaries, housing fund, other allowances and benefits in kind | ¥ 4,183 | ¥ 4,665 | ¥ 1,849 |
Pension costs | 20 | 513 | 234 |
Total remuneration | 4,886 | 5,958 | 2,839 |
Highest paid employees other than directors and supervisors | |||
Significant related party transactions | |||
Basic salaries, housing fund, other allowances and benefits in kind | 1,620 | 1,670 | 1,305 |
Pension costs | 8 | 137 | 165 |
Total remuneration | ¥ 1,628 | ¥ 1,807 | ¥ 1,470 |
DIRECTORS' AND SUPERVISORS' R_7
DIRECTORS' AND SUPERVISORS' REMUNERATION - Five highest paid individuals, Others (Details) | 12 Months Ended | ||
Dec. 31, 2020CNY (¥)employee | Dec. 31, 2019CNY (¥)employee | Dec. 31, 2018CNY (¥)employee | |
Significant related party transactions | |||
Number of remaining highest paid individuals other than director and supervisor | employee | 3 | 2 | 2 |
Minimum | |||
Significant related party transactions | |||
Remuneration amount for remaining two highest paid individuals | ¥ 0 | ¥ 0 | ¥ 0 |
Maximum | |||
Significant related party transactions | |||
Remuneration amount for remaining two highest paid individuals | ¥ 1,000,000 | ¥ 1,000,000 | ¥ 1,000,000 |
INCOME TAX EXPENSE) (Details)
INCOME TAX EXPENSE) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
INCOME TAX EXPENSE | ||||
Current income tax expense | ¥ 813,112 | ¥ 723,062 | ¥ 759,111 | |
Deferred tax (benefit)/expense | (230,924) | (94,686) | 67,255 | |
Total income tax expense | $ 89,224 | ¥ 582,188 | ¥ 628,376 | ¥ 826,366 |
Applicable tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Tax concessions including a preferred tax rate | 15.00% | 15.00% | 15.00% | 15.00% |
INCOME TAX EXPENSE - Reconcilia
INCOME TAX EXPENSE - Reconciliation of tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Reconciliation of income tax expense (benefit) | ||||
Profit before income tax | ¥ 2,155,217 | ¥ 2,118,961 | ¥ 2,272,555 | |
Tax expense calculated at the statutory tax rate of 25%(2019: 25%, 2018: 25%) | 538,804 | 529,740 | 568,139 | |
Preferential income tax rates applicable to certain branches and subsidiaries | (357,016) | (464,912) | (268,665) | |
Impact of change in income tax rate | (52,177) | 4,594 | 23,425 | |
Tax losses with no deferred tax assets recognised | 477,876 | 588,267 | 434,103 | |
Deductible temporary differences with no deferred tax assets recognised | 146,276 | 41,695 | 384,072 | |
Utilisation of previously unrecognised tax losses and deductible temporary differences | (73,779) | (18,105) | (52,962) | |
Tax incentive in relation to deduction of certain expenses | (42,958) | (50,921) | (62,172) | |
Non-taxable income | (173,686) | (252,500) | ||
Expenses not deductible for tax purposes | 52,261 | 56,448 | 54,959 | |
Write-off of unrecoverable deferred tax assets previously recognised | 41,757 | 187,432 | 183,195 | |
Profits and losses attributable to joint ventures and associates | (70,577) | (79,720) | 40,029 | |
Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized | (61,987) | (3,868) | (233,940) | |
Adjustments in respect of current income tax of previous periods | (16,292) | 11,412 | 8,683 | |
Income tax expense | $ 89,224 | ¥ 582,188 | ¥ 628,376 | ¥ 826,366 |
Effective tax rate | 27.00% | 27.00% | 30.00% | 36.00% |
Applicable tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
EARNINGS PER SHARE ATTRIBUTAB_3
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)shares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY | ||||
Profit attributable to owners of the Company | $ 113,564 | ¥ 741,004 | ¥ 853,102 | ¥ 709,397 |
Other equity instruments' distribution reserved | ¥ | (261,168) | (219,249) | (129,282) | |
Profit attributable to ordinary shares holders of the Company | ¥ | ¥ 479,836 | ¥ 633,853 | ¥ 580,115 | |
Number of ordinary shares in issue (thousands) as of January 1 | 17,022,673 | 17,022,673 | 14,903,798 | 14,903,798 |
Effect of equity exchange arrangement | 1,938,916 | |||
Issuance of share capital (thousands) (Note 17) | 2,118,875 | |||
Weighted average number of ordinary shares in issuance | 17,022,673 | 17,022,673 | 17,022,673 | 16,842,714 |
Basic earnings per share (RMB) | ¥ / shares | ¥ 0.028 | ¥ 0.037 | ¥ 0.034 | |
Dilutive potential shares | 0 | 0 | 0 | 0 |
NOTES TO THE CONSOLIDATED STA_3
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS - Supplemental disclosures (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
Profit before income tax | $ 330,301 | ¥ 2,155,217 | ¥ 2,118,961 | ¥ 2,272,555 |
Adjustments for: | ||||
Share of profits of joint ventures | (27,663) | (180,502) | (270,115) | 199,452 |
Share of profits of associates | (22,335) | (145,737) | (48,767) | (39,335) |
Depreciation of property, plant and equipment | 7,152,170 | 7,100,776 | 7,505,687 | |
Depreciation of investment properties | 24,405 | 26,559 | 22,229 | |
Depreciation of right-of-use assets | 767,553 | 1,075,825 | (108,152) | |
Amortization of land use rights | 108,152 | |||
Amortization of intangible assets | 459,482 | 338,938 | 295,901 | |
Amortization of prepaid expenses included in other non-current assets | 274,745 | 248,145 | 130,148 | |
Gain on write-off and disposal of property, plant and equipment and intangible assets, net | (319,796) | (243,622) | (101,098) | |
Impairment loss on property, plant and equipment | 63,884 | 416,841 | 259,354 | 46,484 |
Impairment loss of investment properties | 87 | |||
Impairment losses of intangible assets | 416 | |||
Impairment loss of right-of-use assets | 15,790 | 1,448 | ||
Impairment loss of inventory | 1,321,387 | 1,163,272 | 2,247,588 | |
Impairment loss of trade and notes receivables | 338,972 | 154,409 | 44,078 | |
Impairment loss of other currents assets | 639,862 | 16,607 | 63,878 | |
Realized and unrealized losses/(gains) on futures, option and forward contracts | (512,984) | (50,820) | (141,459) | |
Gain on previously held equity interest remeasured at acquisition-date fair value | (748,086) | |||
Gain on disposals of subsidiaries | (11,305) | (261,187) | (3,517) | |
Gain on disposal of investment in a joint venture and associates | (159,514) | 1,904 | ||
Gain on acquisition of associates | (557,965) | |||
Dividends from other financial assets measured at fair value | (82,794) | (97,775) | (109,914) | |
Government subsidies | (29,933) | (112,141) | (158,109) | |
Finance costs | 4,420,528 | 4,921,541 | 4,882,692 | |
Change in special reserve | 12,524 | (23,085) | 6,605 | |
Others | 21,342 | (11,558) | 75,381 | |
Changes in working capital: | ||||
Decrease/(increase) in inventories | (1,668,260) | (234,203) | (1,051,617) | |
Increase in trade and notes receivables | (3,867,944) | (1,169,339) | (2,559,274) | |
Decrease/ (increase) in other current assets | (414,247) | (377,246) | 852,918 | |
Decrease in restricted cash | 249,744 | 859,507 | 530,284 | |
(Increase)/decrease in other non-current assets | (70,637) | 547,856 | 425,739 | |
(Increase)/decrease in trade and notes payables | 3,009,490 | (1,405,565) | 18,669 | |
Increase/(decrease) in other payables and accrued liabilities | 1,879,398 | (560,910) | (951,554) | |
(Decrease)/increase in other non-current liabilities | (177,045) | (206,354) | 105,386 | |
Cash generated from operations | 15,678,682 | 13,043,119 | 13,971,767 | |
PRC corporate income taxes paid | (797,336) | (551,446) | (950,091) | |
Net cash generated from operating activities | $ 2,280,666 | 14,881,346 | 12,491,673 | 13,021,676 |
Major non-cash transactions of investing activities and financing activities | ||||
Investment in a joint venture used gallium business | 352,848 | |||
Acquisition of minority interests for nil consideration | 149,322 | |||
Endorsement of notes receivables accepted from sale of goods or services for purchase of property, plant and equipment | 2,276,782 | 1,504,162 | 2,384,046 | |
Acquisition of other financial assets measured at fair value through other comprehensive income by exchanging equity in a subsidiary | 350,911 | |||
Equity exchange arrangement | 10,735,214 | |||
Finance lease | 113,601 | |||
Acquisition of business | 42,230 | 70,087 | ||
Major non-cash transactions of investing activities and financing activities | ¥ 2,319,012 | ¥ 2,357,243 | ¥ 13,302,948 |
NOTES TO THE CONSOLIDATED STA_4
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS - Financing activities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | ¥ 112,321,674 | ¥ 111,059,338 | ||
Net cash generated from operating activities | 1,988 | 497,927 | ||
Net cash flows from/(used in) investing activities | (1,607,665) | 7,780,690 | ||
Proceeds from gold leasing arrangement | 6,921,860 | |||
Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs | 25,870,716 | 37,964,489 | ||
Distribution of senior perpetual securities | $ (64,585) | (421,416) | (352,648) | ¥ (410,548) |
Repayments of short-term bonds and mid-term notes | (4,695,604) | (30,638,813) | (22,400,000) | (21,815,000) |
Repayments of gold leasing arrangement | (6,921,860) | (1,607,905) | ||
Drawdown of short-term and long-term bank borrowings and other loans | 7,053,089 | 46,021,404 | 40,669,197 | 76,899,591 |
Repayments of short-term and long-term bank borrowings and other loans | (6,607,120) | (43,111,460) | (66,105,388) | (70,560,667) |
Capital elements of finance lease rental payment | (3,915,404) | |||
Payments of lease liabilities | $ (267,924) | (1,748,202) | (3,032,106) | |
Dividends paid by subsidiaries to non-controlling shareholders | 2,474 | (23,715) | ||
Amortization of unrecognized finance expenses and interest expense | 487,249 | 487,249 | ||
Interest paid | 280,514 | 257,941 | ||
Reclassification | 987,232 | 162,120 | ||
Net foreign exchange differences | (311,005) | 42,625 | ||
Net cash (used in)/ generated from financing activities | (9,503,167) | (7,016,281) | ||
As at end of year | 101,212,830 | 112,321,674 | 111,059,338 | |
Financial liabilities included in other current payables and accrued expenses | ||||
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | 10,791,507 | 9,286,462 | ||
Net cash generated from operating activities | 1,988 | 497,927 | ||
Net cash flows from/(used in) investing activities | (2,154,660) | 622,995 | ||
Dividends paid by subsidiaries to non-controlling shareholders | 2,474 | (23,715) | ||
Interest paid | 258,864 | 235,310 | ||
Reclassification | 87,277 | 162,120 | ||
Net foreign exchange differences | 10,408 | |||
Net cash (used in)/ generated from financing activities | 348,615 | 384,123 | ||
As at end of year | 8,987,450 | 10,791,507 | 9,286,462 | |
Interest bearing loans and borrowings | ||||
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | 101,530,167 | 101,772,876 | ||
Net cash flows from/(used in) investing activities | 546,995 | 7,157,695 | ||
Proceeds from gold leasing arrangement | 6,921,860 | |||
Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs | 25,870,716 | 37,964,489 | ||
Distribution of senior perpetual securities | (421,416) | (352,648) | ||
Repayments of short-term bonds and mid-term notes | (30,638,813) | (22,400,000) | ||
Repayments of gold leasing arrangement | (6,921,860) | (1,607,905) | ||
Drawdown of short-term and long-term bank borrowings and other loans | 46,021,404 | 40,669,197 | ||
Repayments of short-term and long-term bank borrowings and other loans | (43,111,460) | (66,105,388) | ||
Payments of lease liabilities | (1,748,202) | (3,032,106) | ||
Amortization of unrecognized finance expenses and interest expense | 487,249 | 487,249 | ||
Interest paid | 21,650 | 22,631 | ||
Reclassification | 899,955 | |||
Net foreign exchange differences | (311,005) | 32,217 | ||
Net cash (used in)/ generated from financing activities | (9,851,782) | (7,400,404) | ||
As at end of year | ¥ 92,225,380 | ¥ 101,530,167 | ¥ 101,772,876 |
NOTES TO THE CONSOLIDATED STA_5
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS - Cashflows from leases (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | |
Within operating activities | ¥ 253,334 |
Within financing activities | 1,748,202 |
Total cash outflow from leases | ¥ 2,001,536 |
SIGNIFICANT RELATED PARTY BALAN
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS - Significant related party transactions - Table Content (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sales of goods and services rendered | |||
Sales of materials and finished goods | ¥ 30,476,262 | ¥ 23,616,344 | ¥ 19,307,107 |
Sales of utility | 1,597,362 | 990,438 | 847,252 |
Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Sales of utility | 7,706 | ||
Purchase of goods and services | |||
Purchase of services | 1,767,590 | 3,237,814 | 2,496,431 |
Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 41,312 | 55,378 | 34,607 |
Provision of social services and logistics services | |||
Purchase of goods and services | |||
Purchase of services | 475,532 | 309,180 | 312,062 |
Purchases of primary and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 22,377,315 | 12,701,924 | 13,822,660 |
Purchases of utilities services | |||
Purchase of goods and services | |||
Purchase of services | 1,179,680 | 1,153,496 | 1,193,038 |
Purchases of other services | |||
Purchase of goods and services | |||
Purchase of services | 373,655 | 272,220 | 226,280 |
Rental expenses/lease liabilities payments for buildings and land use rights | |||
Purchase of goods and services | |||
Rental expenses /lease liabilities payments for buildings and land use rights charged | 661,888 | 499,191 | 501,866 |
Chinalco and its subsidiaries | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 13,986,223 | 13,612,817 | 11,320,015 |
Sales of utility | 1,104,542 | 687,290 | 620,552 |
Chinalco and its subsidiaries | Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Sales of utility | 5,981 | ||
Chinalco and its subsidiaries | Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 39,284 | 52,571 | 31,551 |
Chinalco and its subsidiaries | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 1,755,092 | 2,949,866 | 2,088,338 |
Chinalco and its subsidiaries | Provision of social services and logistics services | |||
Purchase of goods and services | |||
Purchase of services | 475,532 | 309,180 | 312,062 |
Chinalco and its subsidiaries | Purchases of primary and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 6,266,563 | 8,161,223 | 3,513,420 |
Chinalco and its subsidiaries | Purchases of utilities services | |||
Purchase of goods and services | |||
Purchase of services | 650,921 | 763,812 | 992,827 |
Chinalco and its subsidiaries | Rental expenses/lease liabilities payments for buildings and land use rights | |||
Purchase of goods and services | |||
Rental expenses /lease liabilities payments for buildings and land use rights charged | 661,888 | 499,191 | 501,866 |
Associates of Chinalco | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 520,485 | 514,414 | 897,642 |
Sales of utility | 3,268 | 4,062 | 15,719 |
Associates of Chinalco | Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 237 | 65 | |
Associates of Chinalco | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 265 | ||
Associates of Chinalco | Purchases of primary and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 2,586 | 18 | 18,917 |
Associates of Chinalco | Purchases of utilities services | |||
Purchase of goods and services | |||
Purchase of services | 85,469 | 100,835 | 96,510 |
Joint ventures | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 6,694,824 | 5,676,548 | 4,462,670 |
Sales of utility | 470,984 | 263,436 | 186,672 |
Other significant related party transactions | |||
Financial guarantee provided to related party | 12,450 | 12,450 | |
Joint ventures | Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 1,426 | 1,967 | 1,545 |
Joint ventures | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 69,332 | 2,100 | |
Joint ventures | Purchases of primary and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 5,501,158 | 2,647,234 | 8,182,251 |
Joint ventures | Purchases of utilities services | |||
Purchase of goods and services | |||
Purchase of services | 443,290 | 280,523 | 26,269 |
Joint ventures | Purchases of other services | |||
Purchase of goods and services | |||
Purchase of services | 373,655 | 272,220 | 226,280 |
Associates | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 9,232,432 | 3,812,565 | 2,626,780 |
Sales of utility | 18,568 | 35,650 | 24,309 |
Associates | Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Sales of utility | 1,725 | ||
Associates | Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 365 | 775 | 1,511 |
Associates | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 12,233 | 218,616 | 405,993 |
Associates | Purchases of primary and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 10,576,907 | 1,893,449 | 2,108,072 |
Associates | Purchases of utilities services | |||
Purchase of goods and services | |||
Purchase of services | 8,326 | 77,432 | |
Subsidiaries of Chinalco | |||
Other significant related party transactions | |||
Borrowing from related parties | 1,925,000 | 3,890,000 | 6,525,000 |
Interest expense on borrowings, discounted notes and factoring arrangement from related parties | 87,985 | 141,991 | 143,415 |
Investment in subsidiaries of Chinalco | 2,137,608 | ||
Disposal of electronic aluminium capacity quota to a subsidiary of Chinalco | 800,000 | ||
Disposal assets under sale and leaseback contract to related parties | 500,000 | 224,000 | |
Finance lease under a sale and leaseback contract from related parties | 558,924 | 224,000 | |
Trade receivable factoring arrangement from related parties | 136,656 | 470,101 | |
Discounted notes receivable to a related parties | 36,750 | ¥ 679,517 | ¥ 756,000 |
Non-controlling shareholder of a subsidiary and its subsidiaries | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 42,298 | ||
Non-controlling shareholder of a subsidiary and its subsidiaries | Purchases of primary and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | ¥ 30,101 |
SIGNIFICANT RELATED PARTY BAL_2
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS - Balances with related parties (Details) - CNY (¥) ¥ in Thousands | Oct. 26, 2017 | Apr. 28, 2015 | Aug. 24, 2012 | Dec. 31, 2020 | Dec. 31, 2019 |
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | ¥ 1,559,721 | ¥ 1,848,410 | |||
Provision for impairment of receivables | (74,668) | (17,815) | |||
Trade and notes receivables | 1,485,053 | 1,830,595 | |||
Provision for impairment of other current assets | (422,089) | (30,509) | |||
Other current assets | 1,696,979 | 1,942,544 | |||
Trade and notes payables | 1,011,313 | 873,290 | |||
Other payables and accrued liabilities | 2,227,165 | 1,981,405 | |||
Contract Liabilities | 32,167 | 85,443 | |||
Subsidiaries of Chinalco | |||||
Balances with related parties | |||||
Cash and cash equivalents | 3,561,997 | 3,285,093 | |||
Interest-bearing loans and borrowings | 8,887,422 | 9,857,187 | |||
Chinalco and its subsidiaries | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 760,138 | 1,054,168 | |||
Other current assets, before provision for impairment | 268,321 | 421,805 | |||
Trade and notes payables | 437,732 | 334,840 | |||
Other payables and accrued liabilities | 2,193,782 | 1,810,514 | |||
Contract Liabilities | 17,460 | 29,210 | |||
Associates of Chinalco | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 56,107 | 6,034 | |||
Trade and notes payables | 1,511 | 917 | |||
Other payables and accrued liabilities | 1,019 | 17,056 | |||
Contract Liabilities | 13,453 | ||||
Joint ventures | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 743,369 | 788,183 | |||
Other current assets, before provision for impairment | 1,416,094 | 1,503,505 | |||
Trade and notes payables | 561,508 | 527,744 | |||
Other payables and accrued liabilities | 3,940 | 73,823 | |||
Contract Liabilities | 519 | 56,010 | |||
Associates | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 107 | 25 | |||
Other current assets, before provision for impairment | 433,453 | 47,743 | |||
Other non-current assets | 111,845 | 111,845 | |||
Trade and notes payables | 10,562 | 9,789 | |||
Other payables and accrued liabilities | 28,424 | 80,012 | |||
Contract Liabilities | 79 | 223 | |||
Non-controlling shareholder of a subsidiary and its subsidiaries | |||||
Balances with related parties | |||||
Other current assets, before provision for impairment | 1,200 | ||||
Contract Liabilities | 656 | ||||
Chinalco Finance | |||||
Balances with related parties | |||||
Renewal term of financial service agreement | 3 years | 3 years | 3 years | ||
Other state-owned enterprises | |||||
Balances with related parties | |||||
Long-term loans and borrowings payable | 31,245,000 | 42,553,000 | |||
Short-term loans and borrowings payable | ¥ 18,543,000 | ¥ 29,781,000 |
SIGNIFICANT RELATED PARTY BAL_3
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS - Compensation of directors, supervisors and senior management (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant related party transactions | |||
Fees | ¥ 683 | ¥ 780 | ¥ 756 |
Basic salaries, housing fund, other allowances and benefits in kind | 4,183 | 4,665 | 1,849 |
Pension costs | 20 | 513 | 234 |
Total remuneration | 4,886 | 5,958 | 2,839 |
Directors, supervisors and senior management | |||
Significant related party transactions | |||
Fees | 683 | 780 | 756 |
Basic salaries, housing fund, other allowances and benefits in kind | 6,081 | 6,945 | 3,953 |
Pension costs | 30 | 715 | 482 |
Total remuneration | ¥ 6,794 | ¥ 8,440 | ¥ 5,191 |
FINANCIAL AND CAPITAL RISK MA_3
FINANCIAL AND CAPITAL RISK MANAGEMENT (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign currency risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Percentage of reasonably possible increase in assumption | 5.00% | 5.00% |
Percentage of reasonably possible decrease in assumption | 5.00% | 5.00% |
Increase (decrease) in profit or loss due to reasonably possible increase in assumption | ¥ 82 | ¥ (95) |
Increase (decrease) in profit or loss due to reasonably possible decrease in assumption | ¥ (82) | ¥ 95 |
Interest rate risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Percentage of reasonably possible increase in assumption | 1.00% | 1.00% |
Percentage of reasonably possible decrease in assumption | 1.00% | 1.00% |
Increase (decrease) in profit or loss due to reasonably possible increase in assumption | ¥ (430) | ¥ (451) |
Increase (decrease) in profit or loss due to reasonably possible decrease in assumption | ¥ 430 | ¥ 451 |
FINANCIAL AND CAPITAL RISK MA_4
FINANCIAL AND CAPITAL RISK MANAGEMENT - Commodity price risk (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Futures contracts | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Fair values of the outstanding financial asset | ¥ 17,311 | ¥ 3,175 |
Commodity price risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Percentage of reasonably possible increase in assumption | 3.00% | 3.00% |
Percentage of reasonably possible decrease in assumption | 3.00% | 3.00% |
Commodity price risk | Primary aluminum | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increase (decrease) in profit or loss due to reasonably possible increase in assumption | ¥ (5,000) | ¥ (40,000) |
Increase (decrease) in profit or loss due to reasonably possible decrease in assumption | 5,000 | 40,000 |
Commodity price risk | Primary aluminum | Futures contracts | Financial liabilities at fair value through profit or loss | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Fair values of the outstanding financial liability | 27,000 | 1,000 |
Commodity price risk | Primary aluminum | Futures contracts | Financial assets at fair value through profit or loss | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Fair values of the outstanding financial asset | ¥ 17,000 | ¥ 3,000 |
FINANCIAL AND CAPITAL RISK MA_5
FINANCIAL AND CAPITAL RISK MANAGEMENT - Credit risk (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | ¥ 25,635,302 | ¥ 28,038,730 |
Credit risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 24,091,288 | |
Credit risk | Trade receivables | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 4,746,995 | |
Credit risk | Financial assets in other current assets | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 3,983,127 | |
Credit risk | Restricted cash | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 1,056,037 | |
Credit risk | Notes receivable | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 4,546,223 | |
Credit risk | Cash and cash equivalents | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 9,631,152 | |
Credit risk | Financial assets in other non-current assets | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 127,754 | |
Credit risk | 12-month expected credit losses | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 13,027,873 | |
Credit risk | 12-month expected credit losses | Financial assets in other current assets | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 2,212,930 | |
Credit risk | 12-month expected credit losses | Restricted cash | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 1,056,037 | |
Credit risk | 12-month expected credit losses | Cash and cash equivalents | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 9,631,152 | |
Credit risk | 12-month expected credit losses | Financial assets in other non-current assets | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 127,754 | |
Credit risk | Lifetime expected credit losses | Financial instruments not credit-impaired | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 563,247 | |
Credit risk | Lifetime expected credit losses | Financial instruments not credit-impaired | Financial assets in other current assets | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 563,247 | |
Credit risk | Lifetime expected credit losses | Financial instruments credit-impaired | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 1,206,950 | |
Credit risk | Lifetime expected credit losses | Financial instruments credit-impaired | Financial assets in other current assets | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 1,206,950 | |
Credit risk | Simplified | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 9,293,218 | |
Credit risk | Simplified | Trade receivables | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | 4,746,995 | |
Credit risk | Simplified | Notes receivable | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Financial assets | ¥ 4,546,223 |
FINANCIAL AND CAPITAL RISK MA_6
FINANCIAL AND CAPITAL RISK MANAGEMENT - Liquidity Maturity profile (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | ¥ 133,844,739 | ¥ 144,132,725 |
Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 12,597,276 | 14,547,539 |
Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 43,014,564 | 38,835,887 |
Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 19,009,960 | 16,785,840 |
Short-term bonds | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,400,000 | 9,300,000 |
Gold leasing arrangement | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 6,921,860 | |
Short-term bank and other loans | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 20,738,030 | 21,238,166 |
Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 11,126,381 | 12,443,169 |
Financial liabilities at fair value through profit or loss | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 26,684 | 805 |
Financial liabilities included in other payables and accrued liabilities, excluding accrued interest | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 8,454,068 | 10,297,166 |
Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,036,917 | 1,153,487 |
Trade and notes payables | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 15,440,859 | 12,608,806 |
Within 1 year | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 61,885,303 | 70,392,348 |
Within 1 year | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,151,332 | 1,729,933 |
Within 1 year | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 3,629,014 | 3,339,687 |
Within 1 year | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 7,109,960 | |
Within 1 year | Short-term bonds | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,400,000 | 9,300,000 |
Within 1 year | Gold leasing arrangement | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 6,921,860 | |
Within 1 year | Short-term bank and other loans | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 20,738,030 | 21,238,166 |
Within 1 year | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,935,356 | 4,955,925 |
Within 1 year | Financial liabilities at fair value through profit or loss | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 26,684 | 805 |
Within 1 year | Financial liabilities included in other payables and accrued liabilities, excluding accrued interest | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 8,454,068 | 10,297,166 |
Within 1 year | Trade and notes payables | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 15,440,859 | 12,608,806 |
Between 1 and 2 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 12,476,550 | 18,383,640 |
Between 1 and 2 years | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 473,410 | 1,106,701 |
Between 1 and 2 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 6,702,687 | 7,525,775 |
Between 1 and 2 years | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 3,000,000 | 7,285,840 |
Between 1 and 2 years | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,105,844 | 2,289,092 |
Between 1 and 2 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 194,609 | 176,232 |
2 to 5 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 27,922,386 | 24,394,907 |
2 to 5 years | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,263,824 | 1,333,762 |
2 to 5 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 15,638,089 | 9,159,028 |
2 to 5 years | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 6,900,000 | 9,500,000 |
2 to 5 years | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 4,046,106 | 4,220,111 |
2 to 5 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 74,367 | 182,006 |
Over 5 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 31,560,500 | 30,961,830 |
Over 5 years | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 9,708,710 | 10,377,143 |
Over 5 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 17,044,774 | 18,811,397 |
Over 5 years | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,000,000 | |
Over 5 years | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,039,075 | 978,041 |
Over 5 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | ¥ 767,941 | ¥ 795,249 |
FINANCIAL AND CAPITAL RISK MA_7
FINANCIAL AND CAPITAL RISK MANAGEMENT - Financial instruments by category (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER CURRENT ASSETS | ||
Current financial assets | ¥ 23,980,845 | ¥ 25,670,806 |
Non-current financial assets | 1,654,457 | 2,367,924 |
Total financial assets | 25,635,302 | 28,038,730 |
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 59,162,276 | 65,687,722 |
Non-current financial liabilities | 58,555,014 | 60,397,050 |
Total financial liabilities | 117,717,290 | 126,084,772 |
Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 26,684 | 805 |
Interest-bearing loans and borrowings | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 34,707,283 | 42,286,604 |
Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 8,987,450 | 10,791,507 |
Trade and notes payables | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 15,440,859 | 12,608,806 |
Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT LIABILITIES | ||
Non-current financial liabilities | 1,036,917 | 1,153,487 |
Total financial liabilities | 1,036,917 | 1,153,487 |
Interest bearing loans and borrowings | ||
OTHER CURRENT LIABILITIES | ||
Non-current financial liabilities | 57,518,097 | 59,243,563 |
Held for trading | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 26,684 | 805 |
Total financial liabilities | 26,684 | 805 |
Held for trading | Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 26,684 | 805 |
Financial liabilities at amortized cost | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 59,135,592 | 65,686,917 |
Non-current financial liabilities | 58,555,014 | 60,397,050 |
Total financial liabilities | 117,690,606 | 126,083,967 |
Financial liabilities at amortized cost | Interest-bearing loans and borrowings | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 34,707,283 | 42,286,604 |
Financial liabilities at amortized cost | Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 8,987,450 | 10,791,507 |
Financial liabilities at amortized cost | Trade and notes payables | ||
OTHER CURRENT LIABILITIES | ||
Current financial liabilities | 15,440,859 | 12,608,806 |
Financial liabilities at amortized cost | Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT LIABILITIES | ||
Non-current financial liabilities | 1,036,917 | 1,153,487 |
Financial liabilities at amortized cost | Interest bearing loans and borrowings | ||
OTHER CURRENT LIABILITIES | ||
Non-current financial liabilities | 57,518,097 | 59,243,563 |
Trade receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,746,995 | 4,574,581 |
Notes receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,546,223 | 2,844,637 |
Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 17,311 | 3,503,175 |
Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 1,056,037 | 1,305,781 |
Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 9,631,152 | 7,778,853 |
Financial assets in other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 3,983,127 | 5,663,779 |
Other financial assets measured at fair value | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,526,703 | 2,239,251 |
Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 127,754 | 128,673 |
Total financial assets | 127,754 | 128,673 |
Held for trading | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 17,311 | 3,503,175 |
Total financial assets | 17,311 | 3,503,175 |
Held for trading | Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 17,311 | 3,503,175 |
At amortized cost | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 19,417,311 | 19,322,994 |
Non-current financial assets | 127,754 | 128,673 |
Total financial assets | 19,545,065 | 19,451,667 |
At amortized cost | Trade receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,746,995 | 4,574,581 |
At amortized cost | Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 1,056,037 | 1,305,781 |
At amortized cost | Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 9,631,152 | 7,778,853 |
At amortized cost | Financial assets in other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 3,983,127 | 5,663,779 |
At amortized cost | Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 127,754 | 128,673 |
Equity investments designated at fair value through other comprehensive income | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,526,703 | 2,239,251 |
Total financial assets | 1,526,703 | 2,239,251 |
Equity investments designated at fair value through other comprehensive income | Other financial assets measured at fair value | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,526,703 | 2,239,251 |
Debt instrument at fair value through other comprehensive income | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,546,223 | 2,844,637 |
Total financial assets | 4,546,223 | 2,844,637 |
Debt instrument at fair value through other comprehensive income | Notes receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | ¥ 4,546,223 | ¥ 2,844,637 |
FINANCIAL AND CAPITAL RISK MA_8
FINANCIAL AND CAPITAL RISK MANAGEMENT - Fair value (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value measurement of assets | ||
Financial assets | ¥ 25,635,302 | ¥ 28,038,730 |
Fair value measurement of liabilities | ||
Financial liabilities | 117,717,290 | 126,084,772 |
Financial liabilities at amortized cost | ||
Fair value measurement of liabilities | ||
Financial liabilities | 52,297,135 | 53,386,442 |
Financial liabilities, at fair value | 50,632,689 | 52,099,569 |
Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Financial liabilities | 1,036,917 | 1,153,487 |
Financial liabilities, at fair value | 903,141 | 1,146,893 |
Long-term interest-bearing loans and borrowings, excluding lease liability | ||
Fair value measurement of liabilities | ||
Financial liabilities | 51,260,218 | 52,232,955 |
Financial liabilities, at fair value | 49,729,548 | 50,952,676 |
Other non-current assets | ||
Fair value measurement of assets | ||
Financial assets | 127,754 | 128,673 |
Financial assets, at fair value | ¥ 117,537 | ¥ 111,935 |
FINANCIAL AND CAPITAL RISK MA_9
FINANCIAL AND CAPITAL RISK MANAGEMENT - Fair value hierarchy (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | ¥ 26,684 | ¥ 805 |
Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 26,684 | 805 |
Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 903,141 | 1,146,893 |
Assets measured at fair value | ||
Fair value measurement of assets | ||
Assets at fair value | 6,090,237 | 8,587,063 |
Futures contracts | ||
Fair value measurement of assets | ||
Assets at fair value | 17,311 | 3,175 |
Financial product | ||
Fair value measurement of assets | ||
Assets at fair value | 3,500,000 | |
Notes receivables | ||
Fair value measurement of assets | ||
Assets at fair value | 4,546,223 | 2,844,637 |
Listed equity investments | ||
Fair value measurement of assets | ||
Assets at fair value | 8,812 | 8,853 |
Other unlisted investments | ||
Fair value measurement of assets | ||
Assets at fair value | 1,517,891 | 2,230,398 |
Quoted prices in active markets (Level 1) | Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 26,684 | 805 |
Quoted prices in active markets (Level 1) | Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 26,684 | 805 |
Quoted prices in active markets (Level 1) | Assets measured at fair value | ||
Fair value measurement of assets | ||
Assets at fair value | 26,123 | 12,028 |
Quoted prices in active markets (Level 1) | Futures contracts | ||
Fair value measurement of assets | ||
Assets at fair value | 17,311 | 3,175 |
Quoted prices in active markets (Level 1) | Listed equity investments | ||
Fair value measurement of assets | ||
Assets at fair value | 8,812 | 8,853 |
Significant observable inputs (Level 2) | Assets measured at fair value | ||
Fair value measurement of assets | ||
Assets at fair value | 3,500,000 | |
Significant observable inputs (Level 2) | Financial product | ||
Fair value measurement of assets | ||
Assets at fair value | 3,500,000 | |
Significant unobservable inputs (Level 3) | Assets measured at fair value | ||
Fair value measurement of assets | ||
Assets at fair value | 6,064,114 | 5,075,035 |
Significant unobservable inputs (Level 3) | Notes receivables | ||
Fair value measurement of assets | ||
Assets at fair value | 4,546,223 | 2,844,637 |
Significant unobservable inputs (Level 3) | Other unlisted investments | ||
Fair value measurement of assets | ||
Assets at fair value | 1,517,891 | 2,230,398 |
Fair value of instruments not measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 50,632,689 | 52,099,569 |
Fair value of instruments not measured at fair value | Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 903,141 | 1,146,893 |
Fair value of instruments not measured at fair value | Long-term interest-bearing loans and borrowings | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 49,729,548 | 50,952,676 |
Fair value of instruments not measured at fair value | Financial assets in other non-current assets | ||
Fair value measurement of assets | ||
Assets at fair value | 117,537 | 111,935 |
Fair value of instruments not measured at fair value | Significant observable inputs (Level 2) | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 50,632,689 | 52,099,569 |
Fair value of instruments not measured at fair value | Significant observable inputs (Level 2) | Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 903,141 | 1,146,893 |
Fair value of instruments not measured at fair value | Significant observable inputs (Level 2) | Long-term interest-bearing loans and borrowings | ||
Fair value measurement of liabilities | ||
Liabilities at fair value | 49,729,548 | 50,952,676 |
Fair value of instruments not measured at fair value | Significant observable inputs (Level 2) | Financial assets in other non-current assets | ||
Fair value measurement of assets | ||
Assets at fair value | ¥ 117,537 | ¥ 111,935 |
FINANCIAL AND CAPITAL RISK M_10
FINANCIAL AND CAPITAL RISK MANAGEMENT - Transfers of fair value (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Transfer of financial assets fair value from Level 1 to Level 2 | ¥ 0 | ¥ 0 |
Transfer of financial assets fair value from Level 2 to Level 1 | 0 | 0 |
Transfer of financial liabilities fair value from Level 1 to Level 2 | 0 | 0 |
Transfer of financial liabilities fair value from Level 2 to Level 1 | 0 | 0 |
Financial assets fair value transfer into Level 3 | 0 | 0 |
Financial assets fair value transfer out of Level 3 | 0 | 0 |
Financial liabilities fair value transfer into Level 3 | 0 | 0 |
Financial liabilities fair value transfer out of Level 3 | ¥ 0 | ¥ 0 |
FINANCIAL AND CAPITAL RISK M_11
FINANCIAL AND CAPITAL RISK MANAGEMENT - Gearing ratio (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jan. 01, 2018CNY (¥) |
Gearing ratio | |||||||
Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) | ¥ 121,811,607 | ¥ 130,168,916 | |||||
Less: Restricted cash, time deposits and cash and cash equivalents | 10,687,189 | 9,084,634 | |||||
Net debt | 111,124,418 | 121,084,282 | |||||
Total equity | $ 10,907,543 | 71,171,716 | ¥ 70,757,466 | 70,757,466 | ¥ 67,699,521 | ¥ 67,699,521 | ¥ 65,668,302 |
Add: net debt | 111,124,418 | 121,084,282 | |||||
Non-controlling interests | $ 2,580,798 | 16,839,706 | 16,085,487 | ||||
Total capital attributable to owners of the parent | ¥ 165,456,428 | ¥ 175,756,261 | |||||
Gearing ratio | 67.00% | 67.00% | 69.00% |
NON - CONTROLLING INTERESTS (De
NON - CONTROLLING INTERESTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Profit for the year allocated to non-controlling interests | $ 127,513 | ¥ 832,025 | ¥ 637,483 | ¥ 736,792 | |
Accumulated balances of non-controlling interests at the reporting dates | 2,580,798 | 16,085,487 | ¥ 16,839,706 | ||
Revenue | 28,504,866 | 185,994,253 | 190,215,398 | 180,350,912 | |
Profit for the year | 241,077 | 1,573,029 | 1,490,585 | 1,446,189 | |
Total comprehensive income for the year | 259,411 | 1,692,661 | 1,501,435 | 1,313,711 | |
Current assets | 7,081,026 | 48,701,467 | 46,203,692 | ||
Non-current assets | 22,788,964 | 154,436,024 | 148,697,992 | ||
Current liabilities | 9,598,042 | 69,203,103 | 62,627,226 | ||
Non-current liabilities | 9,364,405 | 63,176,922 | 61,102,742 | ||
Net cash flows from operating activities | 2,280,666 | 14,881,346 | 12,491,673 | 13,021,676 | |
Net cash flows used in investing activities | 296,220 | 1,932,820 | (13,395,833) | (5,530,701) | |
Net cash flows used in financing activities | (2,417,381) | (15,773,421) | (10,474,035) | (16,280,606) | |
Effect of foreign exchange rate changes, net | $ (13,548) | ¥ (88,401) | ¥ 21,205 | ¥ 57,364 | |
Ningxia Energy | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Non-controlling interests (in percent) | 29.18% | 29.18% | 29.18% | ||
Profit for the year allocated to non-controlling interests | ¥ 48,040 | ¥ 240,504 | |||
Dividends distributed to non-controlling interests | 76,469 | ||||
Accumulated balances of non-controlling interests at the reporting dates | 4,978,089 | 5,178,314 | |||
Revenue | 6,932,708 | 6,695,724 | |||
Total expenses | 6,768,073 | 6,314,098 | |||
Profit for the year | 164,635 | 381,626 | |||
Total comprehensive income for the year | 164,635 | 381,626 | |||
Current assets | 5,081,743 | 6,037,632 | |||
Non-current assets | 32,133,495 | 31,242,070 | |||
Current liabilities | 8,688,475 | 9,779,461 | |||
Non-current liabilities | 17,559,995 | 16,256,073 | |||
Net cash flows from operating activities | 2,617,463 | 3,274,683 | |||
Net cash flows used in investing activities | (652,297) | (939,054) | |||
Net cash flows used in financing activities | (1,792,661) | (2,611,597) | |||
Net increase/(decrease) in cash and cash equivalents | ¥ 172,505 | ¥ (275,968) | |||
Shanxi Zhongrun | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Non-controlling interests (in percent) | 60.00% | 60.00% | 56.61% | ||
Profit for the year allocated to non-controlling interests | ¥ 147,747 | ¥ 69,701 | |||
Accumulated balances of non-controlling interests at the reporting dates | 996,686 | 1,277,602 | |||
Revenue | 3,561,831 | 2,204,777 | |||
Total expenses | 3,315,585 | 2,081,652 | |||
Profit for the year | 246,246 | 123,125 | |||
Total comprehensive income for the year | 246,246 | 123,125 | |||
Current assets | 783,726 | 643,121 | |||
Non-current assets | 4,010,818 | 4,138,211 | |||
Current liabilities | 1,084,890 | 2,595,397 | |||
Non-current liabilities | 2,093,735 | 45,365 | |||
Net cash flows from operating activities | 418,528 | 234,014 | |||
Net cash flows used in investing activities | (188,504) | (402,636) | |||
Net cash flows used in financing activities | (404,548) | 307,452 | |||
Net increase/(decrease) in cash and cash equivalents | ¥ (174,524) | ¥ 138,830 | |||
Guizhou Huaren | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Non-controlling interests (in percent) | 60.00% | 60.00% | 60.00% | ||
Profit for the year allocated to non-controlling interests | ¥ 420,737 | ¥ 198,016 | |||
Accumulated balances of non-controlling interests at the reporting dates | 1,028,426 | 1,359,716 | |||
Revenue | 6,094,811 | 5,982,665 | |||
Total expenses | 5,393,582 | 5,677,075 | |||
Profit for the year | 701,229 | 305,590 | |||
Total comprehensive income for the year | 701,229 | 305,590 | |||
Current assets | 1,034,442 | 1,610,363 | |||
Non-current assets | 2,650,822 | 2,601,807 | |||
Current liabilities | 1,164,346 | 1,003,650 | |||
Non-current liabilities | 1,006,360 | ¥ 932,570 | |||
Net cash flows from operating activities | 992,304 | 565,027 | |||
Net cash flows used in investing activities | (27,475) | (91,319) | |||
Net cash flows used in financing activities | (612,892) | (354,187) | |||
Net increase/(decrease) in cash and cash equivalents | ¥ 351,937 | ¥ 119,521 |
BUSINESS COMBINATION - (Details
BUSINESS COMBINATION - (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2020 | Apr. 30, 2020 |
Henan Zhongzhou Logistics | ||
Disclosure of detailed information about business combination [line items] | ||
Equity interest acquired (as a percent) | 100.00% | |
Chongqing Xinan Transportation | ||
Disclosure of detailed information about business combination [line items] | ||
Equity interest acquired (as a percent) | 51.00% | |
Consideration transferred | ¥ 8,189 |
BUSINESS COMBINATION - Suzhou Z
BUSINESS COMBINATION - Suzhou Zhongse Metal Materials Technology (Details) - CNY (¥) ¥ in Thousands | Jun. 01, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Apr. 29, 2019 | Dec. 31, 2018 | Aug. 30, 2018 |
Disclosure of detailed information about business combination [line items] | ||||||
Consideration transferred, acquisition-date fair value | ¥ 3,000 | |||||
Assets | ||||||
Intangible assets | ¥ 0 | |||||
Liabilities | ||||||
Total purchase consideration | ¥ 3,000 | |||||
Suzhou Zhongse Metal Materials Technology Co., Ltd | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Consideration transferred, acquisition-date fair value | ¥ 237 | ¥ 237 | ||||
Proportion of voting rights held in subsidiary | 100.00% | 100.00% | ||||
Assets | ||||||
Property, plant and equipment | ¥ 55,746 | ¥ 55,747 | ||||
Intangible assets | 26,574 | |||||
Right-of-use assets | 26,318 | |||||
Other current assets | 2,229 | 2,561 | ||||
Deferred tax assets | 143 | 86 | ||||
Trade and notes receivables | 2,758 | 3,485 | ||||
Cash and cash equivalents | 136 | 183 | ||||
Liabilities | ||||||
Deferred tax liabilities | 111 | |||||
Interest bearing loans and borrowings | 51,908 | 51,908 | ||||
Other payables and accrued expenses | 33,404 | 34,536 | ||||
Trade and notes payables | 1,564 | 1,664 | ||||
Net assets | 454 | ¥ 417 | ||||
Net assets acquired | 454 | |||||
Difference recognized in equity | (217) | |||||
Total purchase consideration | ¥ 237 | ¥ 237 | ||||
Suzhou Zhongse Metal Materials Technology Co., Ltd | Zhongse Technology Co., Ltd | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Percentage of voting equity interests acquired | 70.00% | |||||
Suzhou Zhongse Metal Materials Technology Co., Ltd | Suzhou Research Institute of Non-ferrous Metals Co., Ltd | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Percentage of voting equity interests acquired | 30.00% |
BUSINESS COMBINATION - Guizhou
BUSINESS COMBINATION - Guizhou Huaren (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2018CNY (¥) | May 31, 2017CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Assets | ||||||
Intangible assets | ¥ 0 | |||||
Restricted cash | 1,056,037 | ¥ 1,305,781 | ||||
Liabilities | ||||||
Contract liabilities | (1,638,826) | (1,579,322) | ||||
Investment income recognized under the equity method | $ 49,998 | ¥ 326,239 | ¥ 318,882 | ¥ (160,117) | ||
Gain on previously held equity interest remeasured at acquisition-date fair value | 748,086 | |||||
Guizhou Huaren | ||||||
BUSINESS COMBINATION | ||||||
Registered capital | ¥ 1,200,000 | |||||
Equity interest acquired (as a percent) | 40.00% | 40.00% | ||||
Assets | ||||||
Property, plant and equipment | ¥ 2,194,095 | |||||
Land use rights | 109,320 | |||||
Intangible assets | 137 | |||||
Other current assets | 353,655 | |||||
Inventories | 220,718 | |||||
Trade and notes receivables | 250 | |||||
Restricted cash | 324,030 | |||||
Cash and cash equivalents | 673,587 | |||||
Liabilities | ||||||
Deferred tax liabilities | (58,299) | |||||
Interest bearing loans and borrowings | (1,680,000) | |||||
Contract liabilities | (2,562) | |||||
Other payables and accrued expenses | (345,562) | |||||
Trade and notes payables | (464,454) | |||||
Net assets | 1,324,915 | |||||
Non-controlling interests | 794,949 | |||||
Share of net assets acquired | 529,966 | |||||
Fair value of previously held equity interest | 529,966 | |||||
Initial investment cost | 480,000 | |||||
Investment income recognized under the equity method | (18,347) | |||||
Book value of the investment | 461,653 | |||||
Fair value of the investment | 529,966 | |||||
Gain on previously held equity interest remeasured at acquisition-date fair value | 68,313 | |||||
Cash and bank balances acquired | 673,587 | |||||
Net inflow of cash and cash equivalents included in cash flows from investing activities | ¥ 673,587 | |||||
Revenue | 4,282,882 | |||||
Profit for the year | 34,639 | |||||
Net cash flows | ¥ (490,684) | |||||
Guizhou Huaren | Hangzhou Jinjiang | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 30.00% | |||||
Guizhou Huaren | Shareholder one | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 15.00% | |||||
Guizhou Huaren | Shareholder two | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 15.00% |
BUSINESS COMBINATION - Shanxi Z
BUSINESS COMBINATION - Shanxi Zhongrun (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2018CNY (¥) | Feb. 28, 2017CNY (¥)director | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Assets | ||||||
Intangible assets | ¥ 0 | |||||
Liabilities | ||||||
Investment income recognized under the equity method | $ 49,998 | ¥ 326,239 | ¥ 318,882 | ¥ (160,117) | ||
Gain on previously held equity interest remeasured at acquisition-date fair value | 748,086 | |||||
Shanxi Zhongrun | ||||||
BUSINESS COMBINATION | ||||||
Registered capital | ¥ 500 | |||||
Equity interest acquired (as a percent) | 40.00% | 40.00% | ||||
Total number of directors | director | 5 | |||||
Number of directors can be appointed | director | 2 | |||||
Assets | ||||||
Property, plant and equipment | ¥ 2,292,483 | |||||
Intangible assets | 749 | |||||
Other current assets | 215,575 | |||||
Inventories | 15,473 | |||||
Trade and notes receivables | 4,135 | |||||
Cash and cash equivalents | 2,173,062 | |||||
Liabilities | ||||||
Deferred tax liabilities | (41,581) | |||||
Interest bearing loans and borrowings | (3,485,852) | |||||
Other payables and accrued expenses | (37,789) | |||||
Trade and notes payables | (13,778) | |||||
Net assets | 1,122,477 | |||||
Non-controlling interests | 673,486 | |||||
Share of net assets acquired | 448,991 | |||||
Fair value of previously held equity interest | 448,991 | |||||
Initial investment cost | 400,184 | |||||
Investment income recognized under the equity method | (6,553) | |||||
Book value of the investment | 393,631 | |||||
Fair value of the investment | 448,991 | |||||
Gain on previously held equity interest remeasured at acquisition-date fair value | 55,360 | |||||
Cash and bank balances acquired | 2,173,062 | |||||
Net inflow of cash and cash equivalents included in cash flows from investing activities | ¥ 2,173,062 | |||||
Revenue | 645,214 | |||||
Profit for the year | 817 | |||||
Net cash flows | ¥ (2,137,166) | |||||
Shareholder one | Shanxi Zhongrun | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 20.00% | |||||
Shareholder two | Shanxi Zhongrun | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 20.00% | |||||
Shareholder three | Shanxi Zhongrun | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 20.00% |
BUSINESS COMBINATION - Shanxi H
BUSINESS COMBINATION - Shanxi Huaxing (Details) ¥ in Thousands, $ in Thousands | Dec. 06, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017 | Dec. 31, 2020CNY (¥) | Jan. 01, 2020CNY (¥) | Jan. 01, 2019CNY (¥) | Jan. 01, 2018CNY (¥) |
Assets | |||||||||||
Intangible assets | ¥ 0 | ||||||||||
Restricted cash | ¥ 1,305,781 | 1,056,037 | |||||||||
Liabilities | |||||||||||
Contract liabilities | (1,579,322) | (1,638,826) | |||||||||
Goodwill | 3,510,000 | ||||||||||
Equity | ¥ 67,699,521 | $ 10,907,543 | 70,757,466 | ¥ 67,699,521 | ¥ 71,171,716 | ¥ 70,757,466 | ¥ 67,699,521 | ¥ 65,668,302 | |||
Investment income recognized under the equity method | $ 49,998 | ¥ 326,239 | ¥ 318,882 | (160,117) | |||||||
Gain on previously held equity interest remeasured at acquisition-date fair value | ¥ 748,086 | ||||||||||
Shanxi Huaxing | |||||||||||
BUSINESS COMBINATION | |||||||||||
Equity interest acquired (as a percent) | 50.00% | 50.00% | 50.00% | ||||||||
Assets | |||||||||||
Property, plant and equipment | ¥ 7,327,807 | ||||||||||
Intangible assets | 728,067 | ||||||||||
Land use rights | 348,901 | ||||||||||
Deferred tax assets | 8,094 | ||||||||||
Other non-current assets | 60,336 | ||||||||||
Other current assets | 102,396 | ||||||||||
Inventories | 865,418 | ||||||||||
Trade and notes receivables | 44,706 | ||||||||||
Restricted cash | 203,350 | ||||||||||
Cash and cash equivalents | 81,344 | ||||||||||
Liabilities | |||||||||||
Deferred tax liabilities | (722,349) | ||||||||||
Interest bearing loans and borrowings | (1,743,036) | ||||||||||
Other non-current liabilities | (239,998) | ||||||||||
Contract liabilities | (617,827) | ||||||||||
Other payables and accrued expenses | (686,024) | ||||||||||
Trade and notes payables | (1,594,724) | ||||||||||
Net assets | 4,166,461 | ||||||||||
Share of net assets acquired | 4,166,461 | ||||||||||
Goodwill | 1,163,949 | ||||||||||
Cash consideration | 2,665,205 | ¥ 2,655,205 | ¥ 2,655,205 | ||||||||
Fair value of previously held equity interest | 2,665,205 | ||||||||||
Equity | 5,330,410 | ||||||||||
Initial investment cost | 2,351,479 | ||||||||||
Investment income recognized under the equity method | (77,309) | ||||||||||
Share of changes in reserves under the equity method | 11,166 | ||||||||||
Cash dividends declared | (236,556) | ||||||||||
Book value of the investment | 2,048,780 | ||||||||||
Fair value of the investment | 2,665,205 | ||||||||||
Gain on previously held equity interest remeasured at acquisition-date fair value | 616,425 | ||||||||||
Cash and bank balances acquired | 81,344 | ||||||||||
Net inflow of cash and cash equivalents included in cash flows from investing activities | ¥ (2,583,861) | ||||||||||
Revenue | 415,509 | ||||||||||
Profit for the year | 110,917 | ||||||||||
Net cash flows | ¥ (434) | ||||||||||
Shanxi Huaxing | The Group | |||||||||||
BUSINESS COMBINATION | |||||||||||
Proportion of ownership interest in associate | 100.00% | ||||||||||
Shanxi Huaxing | Shanxi Huaxing | |||||||||||
BUSINESS COMBINATION | |||||||||||
Proportion of ownership interest in associate | 50.00% | ||||||||||
Chalco Hong Kong | Shanxi Huaxing | |||||||||||
BUSINESS COMBINATION | |||||||||||
Proportion of ownership interest in associate | 10.00% | ||||||||||
Baotou Communication Investment Group Limited [Member] | Shanxi Huaxing | |||||||||||
BUSINESS COMBINATION | |||||||||||
Proportion of ownership interest in associate | 40.00% |
BUSINESS COMBINATION - Shandong
BUSINESS COMBINATION - Shandong & Pingguo Aluminum Carbon Plant (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 | Aug. 30, 2018 | Dec. 31, 2017 |
Liabilities | |||||
Contract liabilities | ¥ (1,638,826) | ¥ (1,579,322) | |||
Total consideration for acquisition | ¥ 3,000 | ||||
Shandong Aluminum Carbon Plant | |||||
BUSINESS COMBINATION | |||||
Cash consideration | ¥ 146,000 | ||||
Assets | |||||
Property, plant and equipment | 23,845 | ¥ 24,393 | |||
Inventories | 46,150 | 51,104 | |||
Other current assets | 411 | 418 | |||
Trade and notes receivables | 44,522 | 23,052 | |||
Cash and cash equivalents | 34,354 | ||||
Liabilities | |||||
Trade and notes payables | (24,011) | (12,235) | |||
Contract liabilities | (1,432) | ||||
Other payables and accrued expenses | (1,542) | (38,415) | |||
Net assets | 87,943 | 82,671 | |||
Difference recognized in equity | 58,319 | ||||
Total consideration for acquisition | ¥ 146,262 | ||||
Pingguo Aluminum Carbon Plant | |||||
BUSINESS COMBINATION | |||||
Cash consideration | 92,000 | ||||
Assets | |||||
Property, plant and equipment | 127,315 | 35,201 | |||
Inventories | 71,264 | 90,581 | |||
Trade and notes receivables | 12,143 | ||||
Liabilities | |||||
Trade and notes payables | (117,749) | (69,521) | |||
Net assets | 80,830 | ¥ 68,404 | |||
Difference recognized in equity | 11,218 | ||||
Total consideration for acquisition | ¥ 92,048 |
BUSINESS COMBINATION - Chibi Gr
BUSINESS COMBINATION - Chibi Great Wall Carbon (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 30, 2018 | Dec. 31, 2017 | |
Assets | |||||
Restricted Cash | ¥ 1,056,037 | ¥ 1,305,781 | |||
Liabilities | |||||
Contract liabilities | ¥ (1,638,826) | ¥ (1,579,322) | |||
Total consideration for acquisition | ¥ 3,000 | ||||
Red Chibi Great Wall | |||||
Liabilities | |||||
Total consideration for acquisition | ¥ 202,000 | ||||
Chalco Mining | |||||
BUSINESS COMBINATION | |||||
Consideration transferred in receivables | ¥ 70,000 | ||||
Cash consideration paid | ¥ 132,000 | ||||
Red Cliff Carbon | |||||
BUSINESS COMBINATION | |||||
Equity interest acquired (as a percent) | 77.65% | ||||
Assets | |||||
Property, plant and equipment | ¥ 379,618 | ¥ 271,604 | |||
Land use rights | 25,731 | 26,124 | |||
Deferred tax assets | 3,325 | 3,325 | |||
Inventories | 65,440 | 59,035 | |||
Other current assets | 18,608 | 11,095 | |||
Trade and notes receivables | 53,392 | 32,880 | |||
Restricted Cash | 15,700 | ||||
Cash and cash equivalents | 16,258 | 50,545 | |||
Liabilities | |||||
Interest bearing loans and borrowings | (233,000) | (228,500) | |||
Contract liabilities | (1,816) | ||||
Trade and notes payables | (56,970) | (46,702) | |||
Other payables and accrued expenses | (52,114) | (51,595) | |||
Income tax payable | (2,927) | ||||
Other non-current liabilities | (65,901) | (69,640) | |||
Net assets | 152,571 | 70,944 | |||
Non-controlling interests | (34,100) | ¥ (15,856) | |||
Difference recognized in equity | 83,497 | ||||
Total consideration for acquisition | ¥ 201,968 | ||||
China Great Wall Aluminum | Red Cliff Carbon | |||||
BUSINESS COMBINATION | |||||
Equity interest acquired (as a percent) | 57.69% | ||||
Henan Great Wall Zhongxin | Red Cliff Carbon | |||||
BUSINESS COMBINATION | |||||
Equity interest acquired (as a percent) | 19.96% |
BUSINESS COMBINATION - Longhua
BUSINESS COMBINATION - Longhua Logistics (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 17, 2018 | Aug. 30, 2018 | Dec. 31, 2017 |
Liabilities | |||||
Contract liabilities | ¥ (1,638,826) | ¥ (1,579,322) | |||
Total purchase consideration | ¥ 3,000 | ||||
East Light Logistics | |||||
BUSINESS COMBINATION | |||||
Equity interest acquired (as a percent) | 51.00% | ||||
Assets | |||||
Property, plant and equipment | ¥ 3,839 | ¥ 2,901 | |||
Inventories | 2,207 | 127 | |||
Other current assets | 608 | 200 | |||
Trade and notes receivables | 6,828 | 6,704 | |||
Cash and cash equivalents | 403 | 281 | |||
Liabilities | |||||
Trade and notes payables | (4,647) | (2,062) | |||
Contract liabilities | (1,504) | ||||
Income tax payable | (130) | ||||
Other payables and accrued expenses | (2,065) | (1,323) | |||
Net assets | 5,669 | 6,698 | |||
Non-controlling interests | (2,778) | ¥ (3,281) | |||
Net assets acquired | 2,891 | ||||
Difference recognized in equity | 413 | ||||
Total purchase consideration | ¥ 3,304 |
DISPOSAL OF SUBSIDIARIES - Othe
DISPOSAL OF SUBSIDIARIES - Other disposals (Details) - CNY (¥) ¥ in Thousands | Feb. 20, 2019 | Jul. 31, 2020 | Jul. 31, 2019 | Jan. 31, 2019 | Aug. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 |
Shandong Shanlv Electronic Ltd | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in subsidiary (in percent) | 75.00% | |||||||
Gain (loss) on disposal | ¥ 10,720 | |||||||
China Aluminum Nanhai Alloy | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in subsidiary (in percent) | 100.00% | |||||||
The fair value of the remaining equity interest in subsidiary | ¥ 350,000 | |||||||
Fair value gain (loss) recognized for remaining equity interest | ¥ 258,000 | |||||||
Chinalco Innovative | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in associate (in percent) | 19.4852% | |||||||
Inner Mongolia Fengrong Co Ltd and Ningxia Fenghao, Disposal Group Held For Sale [Member] | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Gain (loss) on disposal | ¥ 3,014 | |||||||
Inner Mongolia Fengrong | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in subsidiary (in percent) | 40.00% | |||||||
Ningxia Fenghao | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in subsidiary (in percent) | 60.00% | |||||||
Shanghai Kailin | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in subsidiary (in percent) | 100.00% | |||||||
Gain (loss) on disposal | ¥ 160 | |||||||
Ruzhou Jinhua | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in subsidiary (in percent) | 51.00% | |||||||
Gain (loss) on disposal | ¥ 113 | |||||||
Zhengzhou Chalco Longyu Mining | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Ownership interest in subsidiary (in percent) | 51.00% | |||||||
Gain (loss) on disposal | ¥ 8,000 | |||||||
Shanxi Huatai Carbon | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Gain (loss) on disposal | ¥ (2,000) | |||||||
Hedong Carbon | ||||||||
DISPOSAL OF SUBSIDIARIES | ||||||||
Gain (loss) on disposal | ¥ (2,000) |
OTHER EQUITY INSTRUMENTS (Detai
OTHER EQUITY INSTRUMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 02, 2020CNY (¥) | Nov. 19, 2019CNY (¥) | Oct. 19, 2018CNY (¥) | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | Oct. 27, 2015CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
OTHER EQUITY INSTRUMENTS | ||||||||||
Proceeds from issuance of perpetual securities | $ 153,257 | ¥ 1,000,000 | ¥ 1,500,000 | ¥ 1,988,000 | ||||||
Repayments for short-term and long term loans | $ 6,607,120 | ¥ 43,111,460 | ¥ 66,105,388 | ¥ 70,560,667 | ||||||
2015 Perpetual Medium-term Notes | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Notional amount | ¥ 2,000,000 | |||||||||
Interest rate (as a percent) | 5.50% | |||||||||
Proceeds from issuance of perpetual securities | ¥ 2,000,000 | |||||||||
2018 Perpetual Medium-term Notes | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Notional amount | ¥ 2,000,000 | |||||||||
Interest rate (as a percent) | 5.10% | |||||||||
Proceeds from Medium-term Notes | ¥ 2,000,000 | |||||||||
Initial spread (as a percent) | 2.61% | |||||||||
2018 Perpetual Medium-term Notes | Maximum | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Margin rate (as a percent) | 5.00% | |||||||||
Margin rate term (in years) | 5 years | |||||||||
2019 Perpetual Medium-term Notes | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Notional amount | ¥ 1,500,000 | |||||||||
Interest rate (as a percent) | 4.20% | |||||||||
Proceeds from Medium-term Notes | ¥ 1,499,000 | |||||||||
Initial spread (as a percent) | 1.31% | |||||||||
2019 Perpetual Medium-term Notes | Maximum | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Margin rate (as a percent) | 3.00% | |||||||||
Margin rate term (in years) | 5 years | |||||||||
2020 Perpetual Medium-term Notes | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Notional amount | ¥ 1,000,000 | |||||||||
Interest rate (as a percent) | 4.45% | |||||||||
Proceeds from issuance of perpetual securities | ¥ 1,000,000 | |||||||||
2020 Perpetual Medium-term Notes | Maximum | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Initial spread (as a percent) | 1.42% | |||||||||
Margin rate (as a percent) | 3.00% | |||||||||
Margin rate term (in years) | 2 years | |||||||||
Chalco Hong Kong | 2016 Senior Perpetual Securities | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Notional amount | $ | $ 500,000 | |||||||||
Interest rate (as a percent) | 4.25% | |||||||||
Proceeds from issuance of perpetual securities | $ 498,000 | ¥ 3,374,000 | ||||||||
Initial spread (as a percent) | 2.931% | |||||||||
Margin rate (as a percent) | 5.00% |
COMMITMENTS (Details)
COMMITMENTS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Capital commitments on property, plant and equipment | ||
Property, plant and equipment | ¥ 1,437,354 | ¥ 4,041,857 |
Other capital commitments | ||
Capital contribution commitment | 761,800 | 443,800 |
Associates | ||
Other capital commitments | ||
Capital contribution commitment | 351,800 | 33,800 |
Joint ventures | ||
Other capital commitments | ||
Capital contribution commitment | ¥ 410,000 | ¥ 410,000 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details) - CNY (¥) ¥ / shares in Units, ¥ in Millions | Mar. 23, 2021 | Mar. 15, 2021 | Mar. 11, 2021 | Mar. 09, 2021 | Jan. 22, 2021 |
Appropriation to statutory reserves | |||||
EVENTS AFTER THE REPORTING PERIOD | |||||
Appropriation to statutory reserves | ¥ 4,230 | ||||
Short-term bonds | Issuance of short-term bonds | |||||
EVENTS AFTER THE REPORTING PERIOD | |||||
Face value | ¥ 2,000 | ¥ 2,000 | ¥ 2,000 | ¥ 2,000 | |
Par value (RMB per unit) | ¥ 100 | ¥ 100 | ¥ 100 | ¥ 100 | |
Interest rate (as a percent) | 2.75% | 2.65% | 2.45% | 2.75% |