Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Entity Central Index Key | 0001161611 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
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, 2019 |
Entity Registrant Name | ALUMINUM CORP OF CHINA LTD |
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 |
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 STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Non-current assets | |||
Intangible assets | $ 1,977,141 | ¥ 13,764,460 | ¥ 12,879,365 |
Property, Plant and equipment | 14,842,635 | 103,331,456 | 106,249,116 |
Investment properties | 215,931 | 1,503,266 | 1,156,006 |
Land use rights | 4,306,865 | ||
Right-of-use assets | 2,282,518 | 15,890,437 | |
Investments in joint ventures | 486,308 | 3,385,582 | 3,393,349 |
Investments in associates | 1,366,371 | 9,512,401 | 6,363,462 |
Equity investments designated at fair value through other comprehensive income | 321,648 | 2,239,251 | 1,729,825 |
Deferred tax assets | 218,653 | 1,522,216 | 1,542,655 |
Other non-current assets | 460,778 | 3,207,843 | 4,442,645 |
Total non-current assets | 22,171,983 | 154,356,912 | 142,063,288 |
Current assets | |||
Inventories | 2,803,214 | 19,515,420 | 20,459,668 |
Trade and notes receivables | 1,061,956 | 7,393,123 | 8,104,017 |
Other current assets | 1,326,821 | 9,237,063 | 9,025,514 |
Financial assets at fair value through profit or loss | 503,200 | 3,503,175 | 16,141 |
Restricted cash and time deposits | 187,564 | 1,305,781 | 2,165,288 |
Cash and cash equivalents | 1,114,538 | 7,759,190 | 19,130,835 |
Total current assets | 6,997,293 | 48,713,752 | 58,901,463 |
Total assets | 29,169,276 | 203,070,664 | 200,964,751 |
Equity attributable to owners of the parent | |||
Share capital | 2,445,154 | 17,022,673 | 14,903,798 |
Other reserves | 5,724,655 | 39,853,906 | 40,367,573 |
Accumulated losses | (318,444) | (2,216,946) | (2,856,064) |
Equity attributable to owners of the parent | 7,851,365 | 54,659,633 | 52,415,307 |
Non-controlling interests | 2,307,654 | 16,065,427 | 15,254,312 |
Total equity | 10,159,019 | 70,725,060 | 67,669,619 |
Non-current liabilities | |||
Interest-bearing loans and borrowings | 8,509,805 | 59,243,563 | 54,207,386 |
Other non-current liabilities | 318,822 | 2,219,574 | 2,438,164 |
Deferred tax liabilities | 246,020 | 1,712,739 | 1,812,805 |
Total non-current liabilities | 9,074,647 | 63,175,876 | 58,458,355 |
Current liabilities | |||
Trade and notes payables | 1,807,687 | 12,584,755 | 14,009,264 |
Other payables and accrued liabilities | 1,787,208 | 12,442,184 | 11,567,152 |
Contract liabilities | 235,403 | 1,638,826 | 1,579,322 |
Financial liabilities at fair value through profit or loss | 116 | 805 | 1,766 |
Income tax payable | 31,106 | 216,554 | 113,783 |
Interest-bearing loans and borrowings | 6,074,090 | 42,286,604 | 47,565,490 |
Total current liabilities | 9,935,610 | 69,169,728 | 74,836,777 |
Total liabilities | 19,010,257 | 132,345,604 | 133,295,132 |
Total equity and liabilities | 29,169,276 | 203,070,664 | 200,964,751 |
Net current liabilities | 2,938,317 | 20,455,976 | 15,935,314 |
Total assets less current liabilities | $ 19,233,666 | ¥ 133,900,936 | ¥ 126,127,974 |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2017CNY (¥)¥ / shares | |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||
Revenue | $ 27,302,445 | ¥ 190,074,161 | ¥ 180,241,414 | ¥ 181,022,636 |
Cost of sales | (25,560,383) | (177,946,276) | (167,029,416) | (166,290,269) |
Gross profit | 1,742,062 | 12,127,885 | 13,211,998 | 14,732,367 |
Selling and distribution expenses | (240,331) | (1,673,139) | (2,496,933) | (2,372,966) |
General and administration expenses | (568,333) | (3,956,604) | (3,959,177) | (4,551,237) |
Research and development expenses | (135,141) | (940,828) | (626,873) | (498,234) |
Impairment loss on property, plant and equipment | (37,254) | (259,354) | (46,484) | (16,200) |
Impairment losses on financial assets | (24,383) | (169,751) | (107,956) | |
Impairment | (216,953) | |||
Other income | 11,415 | 79,469 | 135,367 | 89,873 |
Other gains, net | 179,159 | 1,247,269 | 921,904 | 319,402 |
Finance income | 37,512 | 261,151 | 492,234 | 706,690 |
Finance costs | (706,883) | (4,921,179) | (4,882,496) | (5,203,422) |
Share of profits and losses of: | ||||
Joint ventures | 38,800 | 270,115 | (199,452) | 8,151 |
Associates | 7,005 | 48,767 | 39,335 | (165,249) |
Profit before income tax | 303,628 | 2,113,801 | 2,264,514 | 3,049,175 |
Income tax expense | (89,879) | (625,720) | (822,519) | (643,706) |
Profit for the year | 213,749 | 1,488,081 | 1,441,995 | 2,405,469 |
Profit attributable to: | ||||
Owners of the parent | 122,238 | 850,999 | 707,460 | 1,413,221 |
Non-controlling interests | 91,511 | 637,082 | 734,535 | 992,248 |
Profit for the year | 213,749 | 1,488,081 | 1,441,995 | 2,405,469 |
Available-for-sale investments: | ||||
Changes in fair value | (5,206) | |||
Reclassification adjustments for gains included in profit or loss | ||||
Gain on disposal | (45,039) | |||
Income tax effect | 11,180 | |||
Exchange differences on translation of foreign operations | (4,643) | (32,323) | (120,756) | (634,793) |
Net other comprehensive income that may be reclassified to profit or loss in subsequent periods | (4,643) | (32,323) | (120,756) | (673,858) |
Equity investments designated at fair value through other comprehensive income: | ||||
Change in fair value | 8,305 | 57,815 | (15,491) | |
Income tax effect | (2,103) | (14,642) | 3,769 | |
Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods | 6,202 | 43,173 | (11,722) | |
Other comprehensive (loss) / income, net of tax | 1,559 | 10,850 | (132,478) | (673,858) |
Total comprehensive income for the year | 215,308 | 1,498,931 | 1,309,517 | 1,731,611 |
Attributable to: | ||||
Owners of the parent | 123,761 | 861,599 | 575,621 | 739,363 |
Non-controlling interests | 91,547 | 637,332 | 733,896 | 992,248 |
Total comprehensive income for the year | $ 215,308 | ¥ 1,498,931 | ¥ 1,309,517 | ¥ 1,731,611 |
Basic and diluted earnings per share attributable to ordinary equity holders of the parent (expressed in RMB per share) | (per share) | $ 0.0053 | ¥ 0.037 | ¥ 0.034 | ¥ 0.087 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ¥ in Thousands, $ in Thousands | TotalCNY (¥) | Share capitalCNY (¥) | Share premiumCNY (¥) | Other capital reservesCNY (¥) | Statutory surplus reserveCNY (¥) | Special reserveCNY (¥) | Gain on available-for-sale financial assets/Fair value reserveCNY (¥) | Other equity instrumentsCNY (¥) | Foreign currency translation reserveCNY (¥) | Retained earnings (Accumulated losses)CNY (¥) | Non-controlling interestsCNY (¥) | USD ($) | CNY (¥) |
At January 1, at Dec. 31, 2016 | ¥ 38,340,143 | ¥ 14,903,798 | ¥ 18,083,069 | ¥ 952,878 | ¥ 5,867,557 | ¥ 132,202 | ¥ 45,901 | ¥ 2,019,288 | ¥ 970,069 | ¥ (4,634,619) | ¥ 17,629,045 | ¥ 55,969,188 | |
Adjustment due to business combinations under common control (Note 38) | 39,241 | 40,000 | (759) | 39,241 | |||||||||
At December 31, at Jan. 01, 2017 | 38,379,384 | 14,903,798 | 18,123,069 | 952,878 | 5,867,557 | 132,202 | 45,901 | 2,019,288 | 970,069 | (4,635,378) | 17,629,045 | 56,008,429 | |
At January 1, at Dec. 31, 2016 | 38,340,143 | 14,903,798 | 18,083,069 | 952,878 | 5,867,557 | 132,202 | 45,901 | 2,019,288 | 970,069 | (4,634,619) | 17,629,045 | 55,969,188 | |
Profit for the year | 1,413,221 | 1,413,221 | 992,248 | 2,405,469 | |||||||||
Other comprehensive income for the year | |||||||||||||
Changes in fair value of available-for-sale financial assets, net of tax | (4,758) | (4,758) | (4,758) | ||||||||||
Disposal of available-for-sale financial assets, net of tax | (34,307) | (34,307) | (34,307) | ||||||||||
Exchange differences on translation of foreign operations | (634,793) | (634,793) | (634,793) | ||||||||||
Total comprehensive income for the year | 739,363 | (39,065) | (634,793) | 1,413,221 | 992,248 | 1,731,611 | |||||||
Business combinations under common control | (242,564) | (242,564) | (242,564) | ||||||||||
Disposal of subsidiaries | (6,149) | (6,149) | 6,929 | 780 | |||||||||
Disposal of equity interest in subsidiaries without loss of control | 38,189 | 38,189 | (38,189) | ||||||||||
Deemed disposal of a subsidiary | (96,568) | (96,568) | |||||||||||
Dividends distributed by subsidiaries to non-controlling shareholders | (312,135) | (312,135) | |||||||||||
Dividends distribution before business combinations under common control | (780) | (780) | (780) | ||||||||||
Capital injection from non-controlling shareholders | 1,887,824 | 1,887,824 | 10,831,897 | 12,719,721 | |||||||||
Capital injection before business combinations under common control | 2,040 | 2,040 | 2,040 | ||||||||||
Acquisition of non-controlling interests | (980,725) | (980,725) | (432,564) | (1,413,289) | |||||||||
Acquisition of a subsidiaries | 416,353 | 416,353 | |||||||||||
Other appropriations | 24,577 | 24,577 | 34,166 | 58,743 | |||||||||
Share of reserves of joint ventures and associates | (3,696) | (3,696) | (3,696) | ||||||||||
Repayment of senior perpetual securities | (2,584,682) | (2,584,682) | |||||||||||
Other equity instruments' distribution | (110,000) | (110,000) | (391,933) | (501,933) | |||||||||
At December 31, at Dec. 31, 2017 | 39,727,463 | 14,903,798 | 18,827,833 | 952,878 | 5,867,557 | 146,934 | 6,836 | 2,019,288 | 335,276 | (3,332,937) | 26,054,567 | 65,782,030 | |
At January 1, at Dec. 31, 2017 | 39,688,029 | 14,903,798 | 18,787,833 | 952,878 | 5,867,557 | 146,934 | 6,836 | 2,019,288 | 335,276 | (3,332,371) | 26,054,567 | 65,742,596 | |
Adjustment due to business combinations under common control (Note 38) | 39,434 | 40,000 | (566) | 39,434 | |||||||||
Effect of adoption of IFRS 9 | (122,511) | 10,835 | (133,346) | (16,925) | (139,436) | ||||||||
At December 31, at Jan. 01, 2018 | 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 | |
At January 1, at Dec. 31, 2017 | 39,688,029 | 14,903,798 | 18,787,833 | 952,878 | 5,867,557 | 146,934 | 6,836 | 2,019,288 | 335,276 | (3,332,371) | 26,054,567 | 65,742,596 | |
At January 1, at Dec. 31, 2017 | 39,727,463 | 14,903,798 | 18,827,833 | 952,878 | 5,867,557 | 146,934 | 6,836 | 2,019,288 | 335,276 | (3,332,937) | 26,054,567 | 65,782,030 | |
Profit for the year | 707,460 | 707,460 | 734,535 | 1,441,995 | |||||||||
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 | 575,621 | (11,083) | (120,756) | 707,460 | 733,896 | 1,309,517 | |||||||
Release of deferred government subsidies | 2,200 | 2,200 | 2,200 | ||||||||||
Equity exchange arrangement | 10,735,214 | 10,735,214 | (10,735,214) | ||||||||||
Business combinations under common control | (443,582) | (443,582) | (443,582) | ||||||||||
Disposal of subsidiaries | (1,160) | (1,160) | |||||||||||
Dividends distributed by subsidiaries to non-controlling shareholders | (605,416) | (605,416) | |||||||||||
Dividends distribution before business combinations under common control | (6,519) | (6,519) | (6,519) | ||||||||||
Issuance of senior perpetual securities (Note 40) | 1,988,000 | 1,988,000 | 1,988,000 | ||||||||||
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 | ||||||||||
Acquisition of a subsidiaries | 1,468,435 | 1,468,435 | |||||||||||
Other appropriations | 8,119 | 8,119 | (1,514) | 6,605 | |||||||||
Share of reserves of joint ventures and associates | 2,051 | 2,051 | 2,051 | ||||||||||
Step acquisition of a subsidiary | (11,166) | (11,166) | (11,166) | ||||||||||
Repayment of senior perpetual securities | (2,175,133) | (2,175,133) | |||||||||||
Other equity instruments' distribution | (110,010) | (19,288) | (90,722) | (300,538) | (410,548) | ||||||||
At December 31, at Dec. 31, 2018 | 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 | |
At January 1, at Dec. 31, 2018 | 52,414,890 | 14,903,798 | 18,414,678 | 11,690,292 | 5,867,557 | 145,938 | 6,588 | 3,988,000 | 214,520 | (2,816,481) | 15,254,312 | 67,669,202 | |
Adjustment due to business combinations under common control (Note 38) | 417 | 40,000 | (39,583) | 417 | |||||||||
At December 31, at Jan. 01, 2019 | 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 | |
Equity other information | |||||||||||||
Other reserves | 40,367,573 | ||||||||||||
At January 1, at Dec. 31, 2018 | 52,414,890 | 14,903,798 | 18,414,678 | 11,690,292 | 5,867,557 | 145,938 | 6,588 | 3,988,000 | 214,520 | (2,816,481) | 15,254,312 | 67,669,202 | |
At January 1, at Dec. 31, 2018 | 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 | |
Profit for the year | 850,999 | 850,999 | 637,082 | $ 213,749 | 1,488,081 | ||||||||
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 | 861,599 | 42,923 | (32,323) | 850,999 | 637,332 | 215,308 | 1,498,931 | ||||||
Business combinations under common control | (237) | (237) | (237) | ||||||||||
Disposal of subsidiaries | (1,547) | (1,666) | 119 | (26,234) | (27,781) | ||||||||
Dividends distributed by subsidiaries to non-controlling shareholders | (199,215) | (199,215) | |||||||||||
Issuance of senior perpetual securities (Note 40) | 1,499,104 | 1,499,104 | 1,499,104 | ||||||||||
Issuance of share capital (Note 16) | (51,678) | 2,118,875 | 8,564,661 | (10,735,214) | (51,678) | ||||||||
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) | ||||||||||
Other appropriations | (5,317) | (5,317) | (17,768) | (23,085) | |||||||||
Share of reserves of joint ventures and associates | 936 | 936 | 936 | ||||||||||
Other equity instruments' distribution | (212,000) | (212,000) | (140,648) | (352,648) | |||||||||
At December 31, at Dec. 31, 2019 | ¥ 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 | 10,159,019 | 70,725,060 |
Equity other information | |||||||||||||
Other reserves | $ 5,724,655 | ¥ 39,853,906 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Net cash flows from operating activities | $ 1,791,705 | ¥ 12,473,489 | ¥ 13,032,076 | ¥ 13,207,140 |
Investing activities | ||||
Purchases of intangible assets | (21,511) | (149,756) | (103,304) | (418,203) |
Purchases of property, plant and equipment | (1,277,188) | (8,891,529) | (6,746,616) | (8,892,436) |
Purchases of investment properties | (6,329) | (44,063) | ||
Purchase of land use rights | (2,838) | (59,215) | ||
Prepaid land lease payments | (867) | (6,034) | ||
Proceeds from disposal of property, plant and equipment | 162,722 | 1,132,839 | 564,791 | 460,982 |
Proceeds from disposal of intangible assets | 828 | 5,764 | 11,730 | |
Proceeds from disposal of land use rights | 5,824 | |||
Proceeds from disposal of a joint venture and an associate | 52,841 | 367,867 | 30,816 | |
Purchase of financial products | (502,744) | (3,500,000) | ||
Acquisition of a subsidiaries | 255,650 | 255,152 | ||
Proceeds from disposal and deemed disposal of subsidiaries and business, net of cash | 3,418 | 23,797 | 6,558 | 5,631,298 |
Interest received from unpaid disposal proceeds | 117,586 | |||
Interest received from loans and borrowings to others | 118,015 | |||
Investments in joint ventures | (7,182) | (50,000) | (90,000) | (15,414) |
Investments in associates | (381,115) | (2,653,244) | (266,300) | (857,317) |
Purchase of investment from equity investments | (1,848,000) | |||
Proceeds from/(purchase of) equity investments designated at fair value through other comprehensive income | (101) | (700) | 198,000 | |
Proceeds from dividends and disposal of equity investments | 124,536 | |||
Dividend from equity investments designated at fair value through other comprehensive income | 14,044 | 97,775 | 109,914 | |
Dividend received | 34,001 | 236,708 | 327,983 | 44,960 |
Decrease in time deposits | 72,700 | |||
Cash paid for settlement of futures, options and forward foreign exchange contracts | (9,660) | (67,253) | (13,288) | 93,677 |
Loans to related parties | (1,600,000) | |||
Proceeds from disposal of financial assets at fair value through profit or loss | 310 | 2,155 | ||
Loans repaid by related parties | 32,215 | 1,010,169 | ||
Asset-related government grants received | 14,849 | 103,373 | 167,314 | 145,825 |
Net cash flows used in investing activities | (1,923,684) | (13,392,301) | (5,529,105) | (5,598,131) |
Financing activities | ||||
Proceeds from a gold leasing arrangement | 994,263 | 6,921,860 | 2,323,105 | 7,804,083 |
Share issue expense | (7,423) | (51,678) | ||
Repayments of gold leasing arrangement | (230,961) | (1,607,905) | (7,519,283) | (4,000,000) |
Proceeds from issuance of bonds and notes, net of issuance costs | 5,453,387 | 37,965,385 | 13,185,034 | 3,478,550 |
Repayments of senior perpetual securities | (2,417,758) | (2,895,910) | ||
Proceeds from issuance of perpetual securities, net of issuance costs | 215,333 | 1,499,104 | 1,988,000 | |
Repayments of bonds and notes | (3,217,559) | (22,400,000) | (21,815,000) | (16,300,000) |
Senior perpetual securities distribution paid | (50,655) | (352,648) | (410,548) | (501,933) |
Drawdown of short-term and long-term loans | 5,841,765 | 40,669,197 | 76,899,591 | 83,762,879 |
Repayments of short-term and long-term loans | (9,495,445) | (66,105,388) | (70,560,667) | (78,858,459) |
Cash consideration paid for business combination under common control | (34) | (237) | (373,495) | (176,848) |
Proceeds from sale and leaseback finance leases, net of deposit and transaction costs | 1,204,843 | 1,000,036 | ||
Purchase of non-controlling interest | (3,765) | (1,413,289) | ||
Capital injection from the parent company to the entity acquired under common control | 69,885 | |||
Principal portion of lease payment | (435,535) | (3,032,106) | ||
Finance lease instalment paid | (3,915,404) | (2,462,250) | ||
Capital injection from non-controlling shareholders | 102,145 | 711,114 | 837,621 | 12,718,761 |
Dividends paid by subsidiaries to non-controlling shareholders | (32,022) | (222,930) | (327,645) | (309,465) |
Interest paid | (641,760) | (4,467,803) | (5,445,120) | (5,233,266) |
Net cash flows used in financing activities | (1,504,501) | (10,474,035) | (16,280,606) | (3,387,111) |
Net increase/(decrease) in cash and cash equivalents | (1,636,480) | (11,392,847) | (8,777,635) | 4,221,898 |
Cash and cash equivalents at beginning of year | 2,747,973 | 19,130,835 | 27,851,106 | 23,850,775 |
Effect of foreign exchange rate changes, net | 3,045 | 21,202 | 57,364 | (221,567) |
Cash and cash equivalents at December 31 | $ 1,114,538 | ¥ 7,759,190 | ¥ 19,130,835 | ¥ 27,851,106 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
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 the manufacture and distribution of alumina, primary aluminum and energy products. The Group is also engaged in the development of bauxite-related resources, the production, fabrication and distribution of bauxite, carbon and relevant non-ferrous metal products and the trading and logistics and transport services of non-ferrous metal products and coal products. The Company is a joint stock company which is domiciled and was established on September 10, 2001 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 the parent of the Company is Aluminum Corporation of China (“Chinalco“) (中國鋁業集团有限公司), 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. (“Chalco 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 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, manufacturing and distribution of 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 Logistic 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 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 43.39 % — 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 % — Chalco Materials Co. Ltd. (中鋁物資有限公司) PRC/Mainland China Import and export activities 100.00 % — The above table lists the subsidiaries of the Company which, in the opinion of the directors, principally affected the results of the year or formed a substantial part of the net assets of the Group. To give details of the other subsidiaries would, in the opinion of the directors, result in particulars of excessive length. * The English names represent the best effort made by management of the Group in translating the subsidiaries' Chinese name as they do not have any official English names. |
BASIS OF PREPARATION AND SIGNIF
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | 2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 2.1 Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs“) issued by the International Accounting Standards Board (the “IASB“) and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared on a historical cost basis, except for equity investments at fair value through other comprehensive income, financial assets and liabilities at fair value through profit or loss and debt instruments at fair value through other comprehensive income which have been measured at fair value. These financial statements are presented in thousands of Renminbi ("RMB") unless otherwise stated. Going concern As at December 31, 2019, the Group’s current liabilities exceeded its current assets by approximately RMB20,456 million (December 31, 2018 : RMB15,935 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 2020; · Unutilized banking facilities of approximately RMB118,084 million as at December 31, 2019, of which amounts totalling RMB108,360 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; 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, 2019. 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. Consolidation The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries for the year ended December 31, 2019. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: · Power over the investee (i.e, existing rights that give it the current ability to direct the relevant activities of the investee); · Exposure, or rights, to variable returns from its involvement with the investee; and · The ability to use its power over the investee to affect its returns. Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: · The contractual arrangement with the other vote holders of the investee; · Rights arising from other contractual arrangements; and · The Group’s voting rights and potential voting rights. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of financial position and consolidated statement of profit and loss and other comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income ("OCI") are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: · Derecognizes the assets (including goodwill) and liabilities of the subsidiary; · Derecognizes the carrying amount of any non-controlling interests; · Derecognizes the cumulative translation differences recorded in equity; · Recognizes the fair value of the consideration received; · Recognizes the fair value of any investment retained; · Recognizes any surplus or deficit in profit or loss; and · Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or liabilities. (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 38. 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 at 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 at 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. (c) Subsidiaries A subsidiary is an entity, directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Group the current ability to direct the relevant activities of the investee). When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: (a) the contractual arrangement with the other vote holders of the investee; (b) rights arising from other contractual arrangements; and (c) the Group’s voting rights and potential voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Inter-company transactions, balances, income and expenses on transactions between group companies are eliminated. Profits and losses resulting from inter-company transactions that are recognized in assets are also eliminated. Amounts reported by subsidiaries have been adjusted where necessary in the consolidated financial statements to conform with the policies adopted by the Group. In the Company’s statement of financial position, as permitted under IFRS 1, the investments in subsidiaries acquired prior to January 1, 2008, being the date of transition to IFRS, are stated at deemed cost as required under the previously adopted accounting standards. Subsidiaries acquired after that date that are not classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are stated at cost less provision for impairment losses. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable. 2.2 Changes in accounting policies and disclosures The Group has adopted the following new and revised IFRSs for the first time for the current year’s financial statements. Amendments to IFRS 9 Prepayment Features with Negative Compensation IFRS 16 Leases Amendments to IAS 19 Plan Amendment, Curtailment or Settlement Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures Amendments to IFRS 10 and IAS 28 (2011) Sale or Contribution of Assets between an Investors and its Associate or Joint Venture IFRIC Interpretation 23 Uncertainty over Income Tax Treatments Annual Improvements 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 Except for the amendments to IFRS 9 and IFRS 19 and Annual Improvements to IFRS 2015-2017 Cycle, which are not relevant to the preparation of the Group’s financial statements, the nature and the impact of the new and revised IFRSs are described below: (a) IFRS 16 Leases IFRS 16 replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC 15 Operating Leases-Incentives and SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model to recognize and measure right-of-use assets and lease liabilities, except for certain recognition exemptions. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have any financial impact on leases where the Group is the lessor. The Group has adopted IFRS 16 using the modified retrospective method of adoption with the date of initial application of January 1, 2019. Under this method, the standard has been applied retrospectively with the cumulative effect of initial adoption recognized as an adjustment to the opening balance of retained earnings at January 1, 2019, and the comparative information for 2018 was not restated and continues to be reported under IAS 17 and related interpretations. New definition of a lease Under IFRS 16, a contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed where the customer has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on or after January 1, 2019. As a lessee- Leases previously classified as operating leases Nature of the effect of adoption of IFRS 16 The Group has lease contracts for various items of property, machinery, vehicles and other equipment. As a lessee, the Group previously classified leases as either finance leases or operating leases based on the assessment of whether the lease transferred substantially all the rewards and risks of ownership of assets to the Group. Under IFRS 16, the Group applies a single approach to recognize and measure right-of-use assets and lease liabilities for all leases, except for two elective exemptions for leases of low-value assets (elected on a lease-by-lease basis) and leases with a lease term of 12 months or less (“short-term leases”) (elected by class of underlying asset). Instead of recognising rental expenses under operating leases on a straight-line basis over the lease term commencing from January 1, 2019, the Group recognizes depreciation (and impairment, if any) of the right-of-use assets and interest accrued on the outstanding lease liabilities (as finance costs). Impacts on transition Lease liabilities at January 1, 2019 were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at January 1, 2019 and included in interest-bearing loans and borrowings. The right-of-use assets were measured at the amount of the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the lease recognized in the consolidated statement of financial position immediately before January 1, 2019. All these assets were assessed for any impairment based on IAS 36 on that date. The Group elected to present the right-of-use assets separately in the statement of financial position. This includes the lease assets recognized previously under finance leases of RMB6,721 million that were reclassified from property, plant and equipment, land use right of RMB4,307 million that were disclosed separately in the statement of financial position, and prepaid rental of RMB20 million that were included in other non-current assets. The Group has used the following elective practical expedients when applying IFRS16 at January 1, 2019: · Applied the short-term leases exemptions to leases with a lease term that ends within 12 months from the date of initial application · Applying a single discount rate to a portfolio of leases with reasonably similar characteristics when measuring the lease liabilities at January 1, 2019 · Using hindsight in determining the lease term where the contract contains options to extend or terminate the lease · and excluding initial direct costs from the measurement of the right-of-use assets at the date of initial application The Group did not change the initial carrying amounts of recognized assets and liabilities at the date of initial application for leases previously classified as finance leases. Accordingly, the carrying amounts of the right-of- use assets and the lease liabilities at January 1, 2019 were the carrying amounts of the recognized assets and liabilities (i.e., finance lease payables) measured under IAS 17. The impact arising from the adoption of IFRS16 at January 1, 2019 is as follows: Increase/(decrease) RMB'000 Assets Increase in right-of-use assets 17,976,851 Decrease in property, plant and equipment (6,720,610) Decrease in land use rights (4,306,865) Decrease in other non-current assets (20,323) Increase in total assets 6,929,053 Liabilities Increase in Interest-bearing loans and borrowings 11,010,323 Decrease in finance lease payables (4,081,270) Increase in total liabilities 6,929,053 Decrease in retained earnings — Decrease in non-controlling interests — The lease liabilities as at January 1, 2019 reconciled to the operating lease commitments as at December 31, 2018 is as follows: Increase/(decrease) RMB'000 Operating lease commitments as at December 31, 2018 12,989,524 Less: Commitments relating to short-term leases, low-value assets leases and those leases with a remaining lease term ending on or before December 31, 2019 59,819 Undiscounted Operating lease commitments as at January 1, 2019 under IFRS 16 12,929,705 Weighted average incremental borrowing rate as at January 1, 2019 4.97 % Discounted operating lease commitments as at January 1, 2019 under IFRS 16 6,929,053 Add: Recognized Finance leases as at December 31, 2018 4,081,270 Lease liabilities as at January 1, 2019 11,010,323 (b) Amendments to IAS 28 Amendments to IAS 28 clarify that the scope exclusion of IFRS 9 only includes interests in an associate or joint venture to which the equity method is applied and does not include long-term interests that in substance form part of the net investment in the associate or joint venture, to which the equity method has not been applied. Therefore, an entity applies IFRS 9, rather than IAS 28, including the impairment requirements under IFRS 9, in accounting for such long-term interests. IAS 28 is then applied to the net investment, which includes the long-term interests, only in the context of recognising losses of an associate or joint venture and impairment of the net investment in the associate or joint venture. The Group assessed its business model for its long-term interests in associates and joint ventures upon adoption of the amendments on January 1, 2019 and concluded that the long-term interests in associates and joint ventures continue to be measured at amortized cost in accordance with IFRS 9. Accordingly, the amendments did not have any impact on financial position or performance of the Group. (c) IFRIC 23 addresses the accounting for income taxes (current and deferred) when tax treatments involve uncertainty that affects the application of IAS 12 (often referred to as “uncertain tax positions”). The interpretation does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The interpretation specifically addresses (i) whether an entity considers uncertain tax treatments separately; (ii) the assumptions an entity makes about the examination of tax treatments by taxation authorities; (iii) how an entity determines taxable profits or tax losses, tax bases, unused tax losses, unused tax credits and tax rates; and (iv) how an entity considers changes in facts and circumstances. Upon adoption of the interpretation, the Group assessed whether it has any uncertain tax positions arising from transactions during the year. Based on the Group’s assessment, the directors are of opinion that the eventual outcome of the uncertainty position shall not have a material adverse financial effect. (d) Amendments to IFRS 10 and IAS 28 (2011) address an inconsistency between the requirements in IFRS 10 and in IAS 28 (2011) in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require a full recognition of a gain or loss when the sale or contribution of assets between an investor and its associate or joint venture constitutes a business. For a transaction involving assets that do not constitute a business, a gain or loss resulting from the transaction is recognized in the investor’s profit or loss only to the extent of the unrelated investor’s interest in that associate or joint venture. The amendments are to be applied prospectively. The Group adopted the amendments on January 1, 2019, and assessed the sale or contribution of assets transaction with its associate or joint venture. The amendments did not have any significant impact on the Group’s financial statements. 2.3 Issued but not yet effective International Financial Reporting Standards The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective, in these financial statements. Amendments to IFRS 3 Definition of a Business 1 Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform 1 IFRS 17 Insurance Contracts 2 Amendments to IAS 1 and IAS 8 Definition of Material 1 1 Effective for annual periods beginning on or after January 1, 2020 2 Effective for annual periods beginning on or after January 1, 2021 Further information about those IFRSs that are expected to be applicable to the Group is described below. Amendments to IAS 1 and IAS 8 provide a new definition of material. The new definition states that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments clarify that materiality will depend on the nature or magnitude of information. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. The Group expects to adopt the amendments prospectively from January 1, 2020. The amendments are not expected to have any significant impact on the Group’s financial statements. Amendments to IFRS 3 clarify and provide additional guidance on the definition of a business. The amendments clarify that for an integrated set of activities and assets to be considered a business, it must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. A business can exist without including all of the inputs and processes needed to create outputs. The amendments remove the assessment of whether market participants are capable of acquiring the business and continue to produce outputs. Instead, the focus is on whether acquired inputs and acquired substantive processes together significantly contribute to the ability to create outputs. The amendments have also narrowed the definition of outputs to focus on goods or services provided to customers, investment income or other income from ordinary activities. Furthermore, the amendments provide guidance to assess whether an acquired process is substantive and introduce an optional fair value concentration test to permit a simplified assessment of whether an acquired set of activities and assets is not a business. The Group expects to adopt the amendments prospectively from January 1, 2020. Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Group will not be affected by these amendments on the date of transition. Amendments to IFRS 9, IAS 39 and IFRS 7 address the effects of interbank offered rate reform on financial reporting. The amendments provide temporary reliefs which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark. In addition, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties. The amendments are effective for annual periods beginning on or after January 1, 2020. Early application is permitted. The amendments are not expected to have any significant impact on the Group’s financial statements. 2.4 Investments in associates and joint ventures An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Group’s investments in associates and joint ventures are stated in the consolidated statement of financial position at the Group’s share of net assets under the equity method of accounting, less any impairment losses. Adjustments are made to bring into line any dissimilar accounting policies that may exist. The Group’s share of the post-acquisition results and other comprehensive income of associates and joint ventures is included in the consolidated statement of profit or loss and other comprehensive income. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, the Group recognizes its share of any changes, when applicable, in the consolidated statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s investments in the associates or joint ventures, except where unrealized losses provide evidence of an impairment of the assets transferred. Goodwill arising from the acquisition of associates or joint ventures is included as part of the Group’s investments in associates or joint ventures. After application of the equity method, the Group determine whether it is necessary to recognize an impairment loss on its investment in its associate and joint venture in the profit or loss. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, then recognizes the loss in the profit or loss. If an investment in an associate becomes an investment in a joint venture or vice versa, the retained interest is not remeasured. Instead, the investment continues to be accounted for under the equity method. In all other cases, upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. When an investment in an associate or a joint venture is classified as held for sale, it is accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations . 2.5 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. The chief operating decision-makers, who are responsible for allocating resources and assessing the performance of the operating segments, have been identified as the presidents of the Company that make strategic decisions. 2.6 Related parties A party is considered to be related to the Group if: (a) the party is a person or a close member of that person’s family and that person: (i) has control or joint control over the Group; (ii) has a significant influence over the Group; or (iii) is a member of the key management personnel of the Group or of a parent of the Group; or (b) the party is an entity where any of the following conditions applies: (iv) the entity and the Group are members of the same group; (v) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity); (vi) the entity and the Group are joint ventures of the same third party; (vii) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; (viii) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group; (If the Group is itself a plan) and the sponsoring employers of the post-employment benefit plan; (ix) a person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); and (x) the entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the parent of the Group. (xi) the entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the parent of the Group. 2.7 Fair value measurement The Group measures its derivative financial instruments and equity investments at fair value at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a l |
SIGNIFICANT ACCOUNTING ESTIMATE
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS | |
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS | 3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS 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 As disclosed in Note 8, the Group owned a 10.04% equity interest in Yunnan Aluminium 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 one out of the eleven directors of the board of directors of Yunnan Aluminum exercises director's rights on behalf of the Group. At December 31, 2019, 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. At December 31, 2019, 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. At December 31, 2019, 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. At December 31, 2019, 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. (b) Consolidation of entities in which the Group holds less than a majority of voting rights At December 31, 2019, 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, 2019, 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 Hangzhou Jinjiang Group Co., Ltd.* ("Hangzhou Jinjiang")(杭州錦江集團有限公司), Hangzhou Jinjiang 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, 2019, the Company owned 43.39% 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. (c) Determination of control over structured entities As disclosed in Note 9, in 2017, the Company initiated the establishment of Beijing Chalco Bocom Size Industry Investment Fund Management Partnership (Limited Partnership) * (“Size Industry Investment Fund”) (北京中鋁交銀四則產業投資基金管理合夥企業(有限合夥)). Pursuant to the Investment Agreements, the directors of the Company are of the opinion that as a limited partner, the Company neither had control over or joint control over nor significant influence over Size Industry Investment Fund. Therefore, the Company’s investment in Size Industry Investment Fund was accounted for as equity investment designated at fair value through other comprehensive income. * 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. 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) Property, plant and equipment and intangible assets – recoverable amount (excluding goodwill) In accordance with the Group’s accounting policy, each asset or cash-generating unit is evaluated in every reporting period to determine whether there are any indications of impairment. If any such indication exists, an estimate of the net 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 an asset or cash-generating unit of assets 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 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 significant estimates and judgments involved in the projections of the future prices of aluminum and alumina, expected production and sales volumes, production costs, operating expenses, and discount rates applied to these forecasted future cash flows. These estimates and judgments may be affected by unexpected changes in the future market or economic conditions; hence, there is a possibility that changes in circumstances will alter these projections, which may impact on the recoverable amounts of the assets. In such circumstances, some or all of the carrying value of the assets may be impaired and the impairment would be charged against profit or loss. (b) 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 value-in-use calculations or market valuations according to the estimated periods that the Group intends to derive future economic benefits from the use 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. (c) Goodwill - recoverable amount In accordance with the Group's accounting policy, goodwill is allocated to the Group's cash generating units ("CGU") as it represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and is tested for impairment annually or more frequently if events or changes in circumstance indicated that the carrying amount may be impaired, by comparing the recoverable amount of the CGU and the carrying amount of the CGU. The recoverable amount is the higher of value in use and the fair value less costs of disposal. The recoverable amount of the underlying CGUs involved estimates and judgments, including future prices of aluminum and alumina, expected production and sales volumes, production costs, operating expenses, terminal growth rates used to estimate future cash flows and discount rates applied to these forecasted future cash flows of the underlying CGUs. These estimates and judgments may be affected by unexpected changes in future market or economic conditions. (d) Provision for expected credit losses on trade receivables The Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by product type, customer type, and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. For instance, if forecast economic conditions (i.e., gross domestic products) are expected to deteriorate over the next year which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted. At each reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed. The assessment of the correlation among historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and forecast economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative of the customer’s actual default in the future. The information about the ECLs on the Group’s trade receivables is disclosed in Note 13 to the financial statements. (e) Estimated impairment of inventories In accordance with the Group’s accounting policy, the Group’s management tests whether inventories suffered any impairment based on estimates of the net realizable amount of the inventories. 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) 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. (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 the 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. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon forecast of future taxable profits which was complex and judgmental and was based on significant assumptions, including future tax rates, the possible utilization of loss carry forwards and future taxable profits that are affected by unexpected changes in the tax law framework and future market or economic conditions. 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 venturer 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. The Group considers that it has recorded adequate current tax provision and deferred taxes based on the prevailing tax rules and regulations and its current best estimates and assumptions. 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) 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 exist, 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. (i) Leases – Estimating the incremental borrowing rate The Group cannot readily determine the interest rate implicit in a lease, and therefore, it uses an incremental borrowing rate (“IBR”) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group “would have to pay”, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when it needs to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating). |
REVENUE AND SEGMENT INFORMATION
REVENUE AND SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE AND SEGMENT INFORMATION | |
REVENUE AND SEGMENT INFORMATION | 4. REVENUE AND SEGMENT INFORMATION (a) Revenue Revenue recognized during the years is as follows: Revenue from contracts with customers (net of value-added tax) Sales of goods 180,706,361 179,785,704 189,569,543 Rendering of services 163,732 215,557 186,703 Revenue from other sources Rental income 152,543 240,153 317,915 181,022,636 180,241,414 190,074,161 Revenue from the rendering of services includes revenue from the supply of heat and water and the provision of machinery processing, transportation, packaging and other services. (i) Disaggregated revenue information For the year ended December 31, 2018 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 43,979,059 53,771,379 7,019,716 141,980,479 667,095 (67,632,024) 179,785,704 Rendering of services — — 215,557 — — — 215,557 Total revenue 43,979,059 53,771,379 7,235,273 141,980,479 667,095 (67,632,024) 180,001,261 Geographical markets Mainland China 43,979,059 53,771,379 7,235,273 132,763,920 667,095 (67,632,024) 170,784,702 Outside of mainland China — — — 9,216,559 — — 9,216,559 Total revenue from contracts with customers 43,979,059 53,771,379 7,235,273 141,980,479 667,095 (67,632,024) 180,001,261 Timing of revenue recognition Goods transferred at a point in time 43,979,059 53,771,379 7,019,716 141,980,479 667,095 (67,632,024) 179,785,704 Services transferred over time — — 215,557 — — — 215,557 Total revenue from contracts with customers 43,979,059 53,771,379 7,235,273 141,980,479 667,095 (67,632,024) 180,001,261 Revenue from contracts with customers External customers 14,586,564 41,313,516 7,036,936 116,610,176 454,069 — 180,001,261 Intersegment sales 29,392,495 12,457,863 198,337 25,370,303 213,026 — 67,632,024 43,979,059 53,771,379 7,235,273 141,980,479 667,095 - 247,633,285 Intersegment adjustments and eliminations (29,392,495) (12,457,863) (198,337) (25,370,303) (213,026) — (67,632,024) Total revenue 14,586,564 41,313,516 7,036,936 116,610,176 454,069 — 180,001,261 For the year ended December 31, 2019 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 43,690,995 49,043,864 7,148,644 158,633,447 492,624 (69,440,031) 189,569,543 Rendering of services — — 186,703 — — — 186,703 Total revenue 43,690,995 49,043,864 7,335,347 158,633,447 492,624 (69,440,031) 189,756,246 Geographical markets Mainland China 43,690,995 49,043,864 7,335,347 152,857,432 492,624 (69,440,031) 183,980,231 Outside of mainland China — — — 5,776,015 — — 5,776,015 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,633,447 492,624 (69,440,031) 189,756,246 Timing of revenue recognition Goods transferred at a point in time 43,690,995 49,043,864 7,148,644 158,633,447 492,624 (69,440,031) 189,569,543 Services transferred over time — — 186,703 — — — 186,703 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,633,447 492,624 (69,440,031) 189,756,246 Revenue from contracts with customers External customers 14,117,594 37,349,482 7,099,211 130,864,398 325,561 — 189,756,246 Intersegment sales 29,573,401 11,694,382 236,136 27,769,049 167,063 — 69,440,031 43,690,995 49,043,864 7,335,347 158,633,447 492,624 — 259,196,277 Intersegment adjustments and eliminations (29,573,401) (11,694,382) (236,136) (27,769,049) (167,063) — (69,440,031) Total revenue 14,117,594 37,349,482 7,099,211 130,864,398 325,561 — 189,756,246 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: Revenue recognized that was included in contract liabilities at the beginning of the reporting period: — Sale of goods 1,277,125 1,543,164 — Others 32,947 36,158 1,310,072 1,579,322 (ii) Performance obligations Information about the Group’s performance obligations is summarized below: Revenue from sales of products (including sales of and 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 payment in advance is normally required. Sale of goods were made in a short period of time and the performance obligation was mostly satisficed in one year or less at the end of each year. 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. The transaction prices allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at December 31, 2018 and December 31, 2019 are as follows: Within one year 1,579,322 1,638,826 More than one year 132,844 125,758 1,712,166 1,764,584 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 presidents of the Company have been identified as the chief operating decision-makers. They are responsible for the review of internal reports in order to allocate resources to operating segments and assess their performance of these operating segments. The presidents monitor the business from a product perspective comprising alumina, primary aluminum and energy products 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 operating segments also include corporate and other operating activities. The presidents assess the performance of operating segments based on profit or loss before income tax in related periods. Unless otherwise stated below, the manner of assessment used by the presidents is consistent with that applied in these financial statements. Management has determined the operating segments based on the reports reviewed by the presidents that are used to make strategic decisions. The Group’s five reportable operating segments are summarized as follows: · The alumina segment, which consists of the mining and purchase of bauxite and other raw materials, the refining of bauxite into alumina, and the sale of 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 chemical alumina and metal gallium. · The primary aluminum segment, which consists of the procurement of alumina and other raw materials, supplemental materials and electricity power, and the smelting of alumina to produce primary aluminum which is sold to internal 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 energy segment, which consists of the research and development, production and operation of energy products, mainly includes coal mining, electricity generation by thermal power, wind power and solar power, and the new energy-related equipment manufacturing business. Sales of coals are mainly made to the Group’s internal and external coal consuming customers; electricity is sold to regional power grid corporations. · The trading segment, which consists of the trading of alumina, primary aluminum, aluminum fabrication products, other non-ferrous metal products, coal products, raw materials and supplemental materials and logistics and transport services to internal manufacturing plants and external customers in the PRC. The products are sourced from fellow subsidiaries of the Group, 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 supply the products to the trading segment. · Corporate and other operating segments, which mainly include corporate management, 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 operating segments were conducted on terms mutually agreed among group companies, and have been eliminated on consolidation. Year ended December 31, 2017 Corporate and other Inter- Primary operating segment Alumina aluminium Energy Trading segments eliminations Total Total revenue 38,997,261 47,245,646 6,250,966 146,856,931 645,314 (58,973,482) 181,022,636 Inter-segment revenue (24,431,939) (10,693,678) (517,269) (23,159,115) (171,481) 58,973,482 — Sales of self-produced products (Note (i)) 23,158,952 Sales of products sourced from external suppliers 100,538,864 Revenue from external customers 14,565,322 36,551,968 5,733,697 123,697,816 473,833 — 181,022,636 Segment profit/(loss) before income tax 3,290,945 826,632 (171,310) 733,896 (1,728,563) 97,575 3,049,175 Income tax expense (643,706) Profit for the year 2,405,469 Other items Finance income 233,016 83,996 44,015 192,327 153,336 — 706,690 Finance costs (708,655) (1,212,249) (1,000,767) (467,088) (1,814,663) — (5,203,422) Share of profits and losses of joint ventures 82,619 — (383,263) 1,885 306,910 — 8,151 Share of profits and losses of associates — (16,887) (181,667) 9,463 23,842 — (165,249) Amortization of land use rights (42,768) (25,120) (15) (6,376) (17,300) — (91,579) Depreciation and amortization (excluding the amortization of land use rights) (2,781,350) (2,516,058) (1,510,218) (79,342) (86,200) — (6,973,168) Gain on disposal of property, plant and equipment and land use right 47,243 40,106 (12,826) 1,673 543 — 76,739 Realized gain/(loss) on futures, forward and option contracts, net 3,398 (47,730) 1,585 (24,953) 43,749 — (23,951) Impairment of property, plant and equipment (568) — (15,632) — — — (16,200) Unrealized loss on futures, forward and option contracts, net — (17,033) — (92,719) (21,321) — (131,073) Gain on deemed disposal and disposal of subsidiaries — — 38,397 54,599 232,026 — 325,022 Changes for impairment of inventories 79,063 64,734 4,488 722 5,287 — 154,294 (Provision for)/reversal of impairment of receivables, net of bad debts recovered (17,453) 269 (25,119) (18,396) — — (60,699) Gain on disposal and dividends of available for sale — 2,792 — — 76,616 — 79,408 Gain on previously held equity interest remeasured at an acquisition-date fair value — — 117,640 — — — 117,640 Investments in associates 90,875 296,357 2,170,178 184,149 4,193,471 — 6,935,030 Investments in joint ventures 2,809,758 — 878,196 28,865 2,290,805 — 6,007,624 Additions during the period: Intangible assets — 197 284,509 372 89 — 285,167 Land use rights — — 27,956 25,199 6,060 — 59,215 Property, plant and equipment (Note (ii)) 2,642,350 5,533,168 1,268,051 64,005 256,093 — 9,763,667 Note: (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB13,187 million, sales of self-produced primary aluminium amounting RMB6,680, and sales of self-produced other products amounting to RMB3,292 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts are not included . Year ended December 31, 2018 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 44,150,937 53,802,172 7,235,273 142,017,821 667,235 (67,632,024) 180,241,414 Inter-segment revenue (29,392,495) (12,457,863) (198,337) (25,370,303) (213,026) 67,632,024 — Sales of self-produced products (Note (i)) 34,454,943 Sales of products sourced from external suppliers 82,192,575 Revenue from external customers 14,758,442 41,344,309 7,036,936 116,647,518 454,209 — 180,241,414 Segment profit/(loss) before income tax 3,496,381 (929,298) 26,020 740,454 (1,267,146) 198,103 2,264,514 Income tax expense (822,519) Profit for the year 1,441,995 Other items Finance income 100,125 54,458 15,744 136,515 185,392 — 492,234 Finance costs (399,344) (1,131,622) (1,047,285) (366,807) (1,937,438) — (4,882,496) 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 Amortization of land use rights (39,027) (41,175) (9,335) (18,615) — — (108,152) Depreciation and amortization (excluding the amortization of land use rights) (2,846,051) (2,954,801) (1,962,081) (101,705) (82,963) — (7,947,601) Gain/(loss) on disposal of property, plant and equipment and land use right 53,116 15,211 24,780 20,036 (12,045) — 101,098 Realized (loss)/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 of property, plant and equipment — — (7,450) (39,034) — — (46,484) Unrealized gain on futures, forward and option contracts, net — — — 100,967 — — 100,967 Gain/(loss) 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 of equity investments at fair value through other comprehensive income — — 1,000 — 108,914 — 109,914 loss on disposal of associates — — (1,904) — — — (1,904) (Loss)/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 period: Intangible assets 99,089 753 2,754 514 194 — 103,304 Land use rights 2,786 — — 52 — — 2,838 Property, plant and equipment (Note (ii)) 2,564,003 4,602,580 1,610,442 101,360 143,839 — 9,022,224 Note: (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB16,561 million, sales of self-produced primary Aluminium amounting RMB13,517 million, and sales of self-produced other products amounting to RMB4,376 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts (Note 20) are not included. Year ended December 31, 2019 Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 43,899,982 49,089,019 7,345,971 158,686,280 492,940 (69,440,031) 190,074,161 Inter-segment revenue (29,573,401) (11,694,382) (236,136) (27,769,049) (167,063) 69,440,031 — Sales of self-produced products (Note (i)) 24,374,356 Sales of products sourced from external suppliers 106,542,875 Revenue from external customers 14,326,581 37,394,637 7,109,835 130,917,231 325,877 — 190,074,161 Segment profit/(loss) before income tax 844,848 687,246 403,479 952,848 (987,704) 213,084 2,113,801 Income tax expense (625,720) Profit for the year 1,488,081 Other items Finance income 61,644 53,252 35,093 105,622 5,540 — 261,151 Finance costs (651,238) (1,328,730) (1,064,769) (223,928) (1,652,514) — (4,921,179) 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 Amortization of right-of-use assets (495,693) (338,975) (146,139) (45,541) (49,477) — (1,075,825) Depreciation and amortization (excluding the amortization of right-of-use assets) (2,830,152) (3,235,356) (1,488,077) (79,366) (81,467) — (7,714,418) (Loss)/gain on disposal of property, plant and equipment, and land use rights (587,503) 830,205 (1,010) 7,216 (5,948) — 242,960 Gain on disposal of business 262,677 — — — — — 262,677 Realized loss on futures, forward and option contracts, net — — — 60,671 — — 60,671 Other income 21,252 716 47,666 6,241 2,757 — 78,632 Impairment losses on property, plant and equipment and other non-current assets (8,743) (247,112) (3,499) — — — (259,354) Unrealized loss on futures, forward and option contracts,net — — — (9,851) — — (9,851) Gain on share of associates’ net assets — — — — 295,288 — 295,288 Gain on disposal of a subsidiary 118 — 3,014 2,738 255,317 — 261,187 Gain on disposal of associates — — 159,514 — — — 159,514 Changes for impairment of inventories 69,740 166,331 (19,076) 34,136 — — 251,131 Reversal of/ (provision for) impairment of receivables, net of bad debts recovered 6,837 1,088 (53,227) (121,154) (3,295) — (169,751) Dividends of equity investments at fair value through other comprehensive income — — 1,000 — 96,775 — 97,775 Investments in associates 83,424 574,385 2,021,964 362,757 6,469,871 — 9,512,401 Investments in joint ventures 1,076,085 — 298,991 79,199 1,931,307 — 3,385,582 Additions during the period: Intangible assets 209,365 949,013 (5,062) 1,869 201 — 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)) 6,486,248 2,381,644 1,454,659 132,841 165,832 — 10,621,224 Note: (i) The sales of self-produced products include sales of self-produced Alumina amounting to RMB13,329 million, sales of self-produced primary Aluminium amounting RMB10,689 million, and sales of self-produced other products amounting to RMB356 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts are not included. Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As at December 31, 2018 Segment assets 82,677,250 57,712,842 39,458,086 20,217,906 33,577,526 233,643,610 Reconciliation: Elimination of inter-segment receivables (34,228,334) Other eliminations (155,283) Corporate and other unallocated assets: Deferred tax assets 1,542,655 Prepaid income tax 162,103 Total assets 200,964,751 Segment liabilities 38,817,030 34,492,538 27,265,031 14,530,230 50,492,049 165,596,878 Reconciliation: Elimination of inter-segment payables (34,228,334) Corporate and other unallocated liabilities: Deferred tax liabilities 1,812,805 Income tax payable 113,783 Total liabilities 133,295,132 Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As at December 31, 2019 Segment assets 90,584,165 63,155,573 38,886,172 17,360,278 49,658,116 259,644,304 Reconciliation: Elimination of inter-segment receivables (58,081,964) Other eliminations (106,985) Corporate and other unallocated assets: Deferred tax assets 1,522,216 Prepaid income tax 93,093 Total assets 203,070,664 Segment liabilities 47,247,335 38,588,473 26,582,436 9,308,667 66,771,364 188,498,275 Reconciliation: Elimination of inter-segment payables (58,081,964) Corporate and other unallocated liabilities: Deferred tax liabilities 1,712,739 Income tax payable 216,554 Total liabilities 132,345,604 The Group mainly operates in Mainland China. Operating segment information by geographical location as follows: 2017 2018 2019 Segment revenue from external customers — Mainland China 171,956,305 171,024,855 184,298,146 — Outside Mainland China 9,066,331 9,216,559 5,776,015 181,022,636 180,241,414 190,074,161 2018 2019 Non-current assets (excluding financial assets and deferred tax assets) — Mainland China 137,939,763 147,798,239 — Outside Mainland China 646,327 2,668,533 138,586,090 150,466,772 For the year ended December 31, 2019, revenues of approximately RMB40,567 million (2017: RMB39,759 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 aluminium, energy and trading segments. There were no other individual customers from which the Group has derived revenue of 10% or more of the Group’s revenue during the years ended December 31, 2017, 2018 and 2019. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Computer software, Electrolytic aluminium Mining Mineral production rights and exploration quota and Goodwill others rights others Total Year ended December 31, 2018 Opening net carrying amount 2,345,930 7,066,428 1,111,586 113,689 10,637,633 Additions — 98,995 — 4,309 103,304 Acquisition of subsidiaries 1,163,949 728,066 — 1,285 1,893,300 Reclassification — 7,072 (7,072) — — Disposals — — — (168) (168) Amortization — (265,108) — (30,793) (295,901) Transfer from property, plant and equipment (Note 6) — 41,148 — 484,068 525,216 Currency translation differences 754 5,782 9,445 — 15,981 Closing net carrying amount 3,510,633 7,682,383 1,113,959 572,390 12,879,365 As at December 31, 2018 Cost 3,510,633 9,430,183 1,113,959 888,975 14,943,750 Accumulated amortization and impairment — (1,747,800) — (316,585) (2,064,385) Net carrying amount 3,510,633 7,682,383 1,113,959 572,390 12,879,365 Computer software, Electrolytic aluminium Mining Mineral production rights and exploration quota and Goodwill others rights others Total Year ended December 31, 2019 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 6) — — — 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 at 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 year ended December 31, 2019, the amortization expenses of intangible assets recognized in profit or loss were analyzed as follows: Cost of sales 241,261 265,108 294,766 General and administrative expenses 34,616 30,793 44,172 275,877 295,901 338,938 As at December 31, 2019, the Group has pledged intangible assets with a net carrying value amounting to RMB757 million (December 31, 2018: RMB773 million) for bank and other borrowings as set out in Note 24 to the financial statements. As at December 31, 2019, the Group was in the process of applying for the certificates of mining rights with a carrying value amounting to RMB39 million (December 31, 2018: RMB21 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 at December 31, 2019, the carrying value of these rights only represented approximately 0.02% of the total asset value of the Group (December 31, 2018: approximately 0.01%). 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 legally owns and 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 level. Therefore, goodwill is allocated to the Group’s cash-generating units (“CGUs”) and groups of CGUs according to operating segments. A summary of goodwill allocated to each segment is presented below: December 31, 2018 December 31, 2019 Primary Primary Alumina aluminum Alumina aluminum Qinghai Branch — 217,267 — 217,267 Guangxi Branch 189,419 — 189,419 — Lanzhou Branch — 1,924,259 — 1,924,259 PT. Nusapati Prima (“PTNP“) 15,739 — 15,998 — Shanxi Huaxing 1,163,949 — 1,163,949 — 1,369,107 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% (2018: 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, expected production and sales volumes, production costs and operating expenses. 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% (2018: 12.62%) that reflects specific risks related to CGUs and groups of CGUs as the discount rate. The assumptions above are used in analyzing 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. The directors of the Company are of the view that, based on their assessment, there was no impairment of goodwill as at December 31, 2019 and December 31, 2018. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total Year ended December 31, 2018 Opening net carrying amount 32,288,223 52,784,696 541,908 129,630 9,987,437 95,731,894 Reclassifications and internal transfers 3,204,611 3,600,371 75,277 5,149 (6,885,408) — Government grants (468) (113,481) — — — (113,949) Transfer to intangible assets (Note 5) — — — — (525,216) (525,216) Transfer to prepaid land lease payments (Note 19) — — — — (382,242) (382,242) Transfer to investment properties (Note 7) (11,039) — — — — (11,039) Transfer from investment properties (Note 7) 21,773 — — — — 21,773 Additions 230,243 1,998,717 31,668 48,912 8,016,079 10,325,619 Acquisition of subsidiaries 4,633,728 4,026,062 17,443 5,937 3,149,060 11,832,230 Disposal of subsidiaries — (472) (101) (53) (8,893) (9,519) Disposals (251,212) (2,505,158) (39,827) (3,347) (275,391) (3,074,935) Depreciation (1,266,607) (6,087,890) (116,807) (28,018) — (7,499,322) Impairment losses — (7,061) — — (39,423) (46,484) Currency translation differences 99 146 34 27 — 306 Closing net carrying amount 38,849,351 53,695,930 509,595 158,237 13,036,003 106,249,116 As at December 31, 2018 Cost 56,620,994 103,608,492 2,538,835 603,665 13,187,424 176,559,410 Accumulated depreciation and impairment (17,771,643) (49,912,562) (2,029,240) (445,428) (151,421) (70,310,294) Net carrying amount 38,849,351 53,695,930 509,595 158,237 13,036,003 106,249,116 Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total Year ended December 31, 2019 Opening net carrying amount 38,849,351 53,695,930 509,595 158,237 13,036,003 106,249,116 Impact on initial application of IFRS 16 (Note 2.2) (148,673) (5,851,498) — — (720,439) (6,720,610) Opening net book amount at January 1, 2019 38,700,678 47,844,432 509,595 158,237 12,315,564 99,528,506 Currency translation differences 89 103 17 46 — 255 Reclassifications and internal transfers 3,869,147 5,125,998 (29,181) 207,546 (9,173,510) — Transfer to intangible assets (Note 5) — — — — (63,370) (63,370) Transfer to right-of-use assets (107,368) (495) — — — (107,863) Transfer to investment properties (Note 7) (179,564) — — — — (179,564) Additions 576,035 635,678 44,122 13,506 9,351,883 10,621,224 Transfer from right-of-use assets (Note 19) * — 1,674,260 — — — 1,674,260 Government grants (7,211) (69,012) — — — (76,223) Disposals (79,280) (378,816) (19,672) (938) (70,201) (548,907) Disposal of subsidiaries (85,851) (73,432) (3,270) (239) — (162,792) Depreciation (1,849,121) (5,121,646) (100,547) (23,402) — (7,094,716) Impairment loss (105,347) (153,394) (14) (185) (414) (259,354) Closing net carrying amount 40,732,207 49,483,676 401,050 354,571 12,359,952 103,331,456 As at December 31, 2019 Cost 60,153,059 101,624,509 2,238,818 829,575 12,511,787 177,357,748 Accumulated depreciation and impairment (19,420,852) (52,140,833) (1,837,768) (475,004) (151,835) (74,026,292) Net carrying amount 40,732,207 49,483,676 401,050 354,571 12,359,952 103,331,456 * This includes the right-of-use assets recognized previously under sale and leaseback contracts of RMB1,674 million that were reclassified from property, plant and equipment, upon initial adoption of IFRS 16. After the expiration of those contracts, they were measured as property, plant and equipment. For the years ended December 31, 2017, 2018 and 2019, depreciation expenses recognized in profit or loss are analyzed as follows: Cost of sales 6,387,773 7,291,380 6,926,580 General and administrative expenses 160,143 201,337 161,547 Selling and distribution expenses 6,926 6,605 6,589 6,554,842 7,499,322 7,094,716 As at December 31, 2019, the Group was in the process of applying for the ownership certificates of buildings with a net carrying value of RMB7,315 million (December 31, 2018: RMB5,639 million). There have been no litigations, claims or assessments against the Group for compensation with respect to the use of these buildings as at the date of approval of these financial statements. As at December 31, 2019, the carrying value of these buildings only represented approximately 3.60% of the Group’s total asset value (December 31, 2018: 2.81%). 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 legally owns and has the rights to use the above buildings, and that there is no material adverse impact on the overall financial position of the Group. For the year ended December 31, 2019, interest expenses of RMB289 million (2017: RMB344 million, 2018: RMB518 million) (Note 28) arising from borrowings attributable to the construction of property, plant and equipment during the year were capitalized at an annual rate ranging from 4.00% to 6.96% (2017: 4.41% to 8.00%, 2018: 4.54% to 7.00)% (Note 28), and were included in additions to property, plant and equipment. As at December 31, 2019, the Group has pledged property, plant and equipment at a net carrying value amounting to RMB4,946 million (December 31, 2018: RMB4,168 million) for bank and other borrowings as set out in Note 24 to the financial statements. As at December 31, 2019, the carrying value of temporarily idle property, plant and equipment of the Group was RMB952 million (December 31, 2018: RMB675 million). The net carrying amounting of the Group’s fixed assets held under finance leases included in the total amounts of the machinery and construction in progress at December 31, 2018 were RMB10,678 million and RMB112 million, respectively. The accumulated depreciation of the Group’s fixed assets held under finance leases amounted to RMB2,011 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 expected product price, demand for the products, product cost and related expenses. Management determined these key assumptions based on past performance and their expectations on market development. Further, the Group adopts a pre-tax and non-inflation rate of 10.16% (2018: 10.16%) that reflects specific risks related to the CGUs as discount rates. The assumptions above are used in analyzing the recoverable amounts of the CGUs within operating segments. These estimates and judgments may be affected by unexpected changes in the future market or economic conditions. For the CGUs with indicators of impairment identified, the assets were not further impaired during the current year based on the impairment testing (2018: Nil). 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 about to be disposed or abandoned, and impairment losses of RMB259 million were provided during the year ended December 31, 2019 (2018: RMB46 million, 2017: RMB16 million). |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT PROPERTIES | |
INVESTMENT PROPERTIES | 7. INVESTMENT PROPERTIES Buildings Land use rights Total Year ended December 31, 2018 Opening net carrying amount 254,061 1,078,309 1,332,370 Transfer from property, plant and equipment (Note 6) 11,039 — 11,039 Transfer to property, plant and equipment (Note 6) (21,773) — (21,773) Disposal — (143,401) (143,401) Depreciation (7,353) (14,876) (22,229) Closing net carrying amount 235,974 920,032 1,156,006 As at December 31, 2018 Cost 251,626 939,015 1,190,641 Accumulated depreciation (15,652) (18,983) (34,635) Net carrying amount 235,974 920,032 1,156,006 Buildings Land use rights 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 6) 179,564 — 179,564 Transfer from right-of-use assets (Note 19) — 239,765 239,765 Disposal (36,949) (52,537) (89,486) Depreciation (8,484) (18,075) (26,559) Impairment — (87) (87) Closing net carrying amount 414,168 1,089,098 1,503,266 As at 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 capital appreciation and buildings leased to third parties under operating leases. As at December 31, 2019, the Group was in the process of applying for the ownership certificates of investment properties with a net carrying value of RMB255 million (December 31, 2018: RMB68 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 at December 31, 2019, the carrying value of these investment properties only represented approximately 0.13% of the total asset value of the Group (December 31, 2018: 0.03%). 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 legally owns and 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 at December 31, 2019, the fair value of the buildings was approximately RMB1,071 million (December 31, 2018: RMB781 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 is likely to be RMB1,269 million (December 31, 2018: RMB1,287 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, 2019 | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | 8. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (a) Investments in joint ventures Movements in investments in joint ventures are as follows: As at January 1 6,007,624 3,393,349 Capital injections 90,000 50,000 A joint venture changed into a subsidiary (2,048,780) — Disposal* — (114,604) Share of profits and losses for the year (199,452) 270,115 Share of changes in reserves (2,837) 8,746 Cash dividends declared (236,253) (222,024) Impairment (216,953) — As at December 31 3,393,349 3,385,582 * In March 2019, a subsidiary of the Group Ningxia Energy transferred, through an auction transaction, its 50% equity interest in Ningxia Zhongning Power Co., Ltd. As at December 31, 2019, all joint ventures of the Group were unlisted. As at December 31, 2019, 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 any official English names. The following table illustrates the summarized financial information in respect of Guangxi Huayin : Cash and cash equivalents 232,022 261,447 Other current assets 1,233,669 1,222,290 Current assets 1,465,691 1,483,737 Non-current assets 5,473,480 5,249,101 Financial liabilities 840,000 1,106,593 Other current liabilities 961,283 960,077 Current liabilities 1,801,283 2,066,670 Non-current liabilities 814,691 414,299 Net assets 4,323,197 4,251,869 Non-controlling interests — — Reconciliation to the Group’s interest in the joint venture: Proportion of the Group’s ownership 33 % 33 % Group’s share of net assets of the joint venture 1,426,655 1,403,117 Carrying amount of the investment 1,426,655 1,403,117 Revenue 5,547,895 5,173,801 5,226,893 Gross profit 1,844,116 979,991 1,303,254 Interest income 31,754 6,365 9,781 Depreciation and amortization 524,090 509,556 525,109 Interest expenses 132,273 77,438 63,351 Profit before income tax 1,507,883 504,875 621,315 Income tax 214,264 78,827 79,300 Other comprehensive income — — — Total comprehensive income for the year 1,293,619 426,048 542,015 Share of the joint ventures’ profits and losses for the year 426,894 140,693 178,865 Dividend received 40,260 132,000 198,000 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 and losses for the year (340,145) 91,250 Share of the joint ventures’ total comprehensive income (340,145) 91,250 Aggregate carrying amount of the Group’s investments in joint ventures 1,858,386 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: As at January 1 6,935,030 6,363,462 Investment to Yunnan Aluminium (Note (1), Note (27) ) — 1,491,736 Investment to Heqing Yixin Aluminum Industry Co., Ltd. (鶴慶溢鑫鋁業有限公司) (“Yixin Aluminum”) (Note (2), Note (27) ) — 941,160 Capital injections, other than to Yunnan Aluminium and Yixin Aluminum 315,300 729,368 Subsidiaries changed into associates — 16,283 Associates changed into subsidiaries (862,214) — Capital reduction (32,720) (20,250) Share of profits and losses for the year 39,335 48,767 Cash dividends declared (36,157) (50,314) Share of changes in reserves 4,888 (7,811) As at December 31 6,363,462 9,512,401 Note (1): Investment to Yunnan Aluminium On December 19, 2019, the Company and Yunnan Aluminum entered into a Share Subscription Agreements ("Subscription Agreements"), pursuant to which the Company subscribed for 314,050,688 shares of Yunnan Aluminum at a price of RMB4.10 per share with the total subscription amount of RMB1,288 million. Upon completion of the subscription, the Company obtained 10.04% equity interests in Yunnan Aluminum. 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 after the investment, the Group is the second largest shareholder of Yunnan Aluminum and one out of the eleven directors of the board of directors of Yunnan Aluminum exercises director's rights on behalf of the Group. As at the date of this announcement, Chinalco is the controlling Shareholder of the Company, and Yunnan Aluminum is a subsidiary of Chinalco. Therefore, Yunnan Aluminum is a connected person of the Company under the Hong Kong Listing Rules. As such, the transaction contemplated under the Shares Subscription Agreement constitutes a connected transaction under Chapter 14A of the Hong Kong Listing Rules. The investment constitutes a related party transaction which was disclosed in Note 35 (a). The investment to Yunnan Aluminum, which is a listed company, is conducive for resolving business competitions between the Company and Yunnan Aluminum and is in line with the development strategies and in the whole interests of the Company. The excess of the fair value of identifiable net assets as at the acquisition date over the consideration transferred approximates to RMB204 million, which was mainly arising from the fair value adjustments for certain intangible assets according to a professional valuer’s report, was recognized in other gains for the year ended December 31, 2019. Note (2): Investment to Yixin Aluminum On December 10, 2019, the Company entered into the Capital Contribution Agreement with shareholders of Yixin Aluminum, including Yunnan Aluminum, Wenshan Aluminum Co., Ltd. (“Wenshan Aluminum”) and three individual shareholders, pursuant to which the Company agreed to make a capital contribution of RMB850 million in cash to Yixin Aluminum. Upon completion of the capital contribution, the Company holds approximately 38.90% equity investments of Yixin Aluminum. Chinalco is the controlling Shareholder of the Company, and Yunnan Aluminum, Wenshan Aluminum and Yixin Aluminum are subsidiaries of Chinalco. Therefore, Yunnan Aluminum, Wenshan Aluminum and Yixin Aluminum are connected persons of the Company under the Hong Kong Listing Rules. As such, the transaction contemplated under the Capital Contribution Agreement constitutes a connected transaction under Chapter 14A of the Hong Kong Listing Rules. The investment constitutes a related party transaction which was disclosed in Note 35 (a). The investment to Yixin Aluminum is to facilitate the Company in participating in the green development layout on the integration of water, electricity and aluminum in Yunnan Province and obtaining competitive assets for its principal business. The excess of the fair value of identifiable net assets as at the acquisition date over the consideration transferred approximated to RMB91 million, which was mainly arising from the fair value adjustments for constructions according to a professional valuer’s report, was recognized in other gains for the year ended December 31, 2019. As at December 31, 2019, all associates , except for Yunnan Aluminium, of the Group were unlisted. As at December 31, 2019, no associate was individually material to the Group. The following table illustrates the aggregate financial information of the Group’s associates that are not individually material: Share of the associates’ profits and losses 39,335 48,767 Share of the associates’ total comprehensive income 39,335 48,767 Aggregate carrying amount of the Group’s investments in the associates 6,363,462 9,512,401 As at December 31, 2019, there were no proportionate interests of the Group in the associates' capital commitments (December 31, 2018: Nil). As at December 31, 2019, the Group had pledged investments in associates amounting to RMB539 million (December 31, 2018: investments in associates amounting to RMB536 million) as set out in Note 24 to the financial statements. There were no material contingent liabilities relating to the Group’s interests in the associates and the associates themselves. |
EQUITY INVESTMENTS DESIGNATED A
EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS | |
EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS | 9. EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS December 31, December 31, Equity investments designated at fair value through other comprehensive income Listed equity investments, at fair value Dongxing securities Co., Ltd.(東興證券) 6,441 8,853 6,441 8,853 Unlisted equity investments Sanmenxia Dachang Mining Co., Ltd. (三門峽達昌礦業有限公司) 20,926 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) 18,010 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) 19,306 20,000 China Color International Alumina Development Co., Ltd. (中色國際氧化鋁開發有限公司) 9,000 6,614 Luoyang Jianyuan Mining Co., Ltd. (洛陽建元礦業有限公司) 4,948 4,960 Ningxia Ningdian Logistics Transportation Co., Ltd. (寧夏寧電物流運輸有限公司) 1,194 1,640 Chinalco Innovative Development Investment Company Limited (“Chinalco Innovative”) (中鋁創投) — 365,681 Size Industry Investment Fund (Note) 1,650,000 1,653,251 Fangchenggang Chisha Pier Co., Ltd. (防城港赤沙碼頭有限公司) — 700 Xingxian Shengxing Highway Investment Management Co., Ltd. (興縣盛興公路投資管理有限公司) — 126,237 1,723,384 2,230,398 1,729,825 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: Included in the unlisted investments is mainly the equity investment in Size Industry Investment Fund. In 2017, the Company entered into a series of agreements with Bank of Communications International Trust Co., Ltd. (“BOCOMMTRUST”) (交銀國際信託有限公司), Bocommtrust Asset Management Co., Ltd.* (“Bocommtrust Asset”) ( 交銀國信資產管理有限公司), a subsidiary of BOCOMMTRUST, and Chinalco Jianxin Investment Fund Management (Beijing) Company Limited* (“Chinalco Jianxin”) (中鋁建信投資基金管理(北京)有限公司) to establish Beijing Chalco Bocom Size (“Size Industry Investment Fund“) (北京中鋁交銀四則產業投資基金管理合夥企業(有限合夥)). According to these agreements, BOCOMMTRUST acted as the prioritised limited partner and the Company as the secondary limited partner of Size Industry Investment Fund, with the maximum amount of capital contribution of RMB6,700 million and RMB3,300 million, respectively. Bocommtrust Asset and Chinalco Jianxin are the general partner and the manager of Size Industry Investment Fund, respectively. The purpose of Size Industry Investment Fund is to invest in the Company’s subsidiaries, associates or joint ventures in the form of debt financing. As at December 31, 2019, Size Industry Investment Fund made four investments in three of the Company’s associates and one of the Company’s joint ventures amounting to RMB5,000 million in the form of debt. The Company and BOCOMMTRUST contributed capital of RMB1,650 million and RMB3,350 million to Size Industry Investment Fund, respectively. Because the variable return of Size Industry Investment Fund depends on the selection of investment targets, the timing and size of the investment fund and the rate of return, which are all determined by BOCOMMTRUST under its full authority, the directors of the Company are of the opinion that the Company did not have control or joint control over, or significant influence over Size Industry Investment Fund. Therefore, the Company’s investment in Size Industry Investment Fund was accounted for as an equity investment designated at fair value through other comprehensive income. * The English names represent the best effort made by management of the Group in translating the Chinese names of the Companies as the companies do not have any official English names. |
DEFERRED TAX
DEFERRED TAX | 12 Months Ended |
Dec. 31, 2019 | |
DEFERRED TAX | |
DEFERRED TAX | 10. 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, 2019 without taking into consideration the offsetting of balances within the same tax jurisdiction are as follows: Movements in deferred tax assets: Unrealized Provision Accrued profit at for impairment expenses Tax losses consolidation Others Total As at January 1, 2018 525,439 264,209 539,899 166,043 168,647 1,664,237 Acquisition of subsidiaries 360 — — — 7,734 8,094 (Charged)/credited to profit or loss (139,956) (21,839) 76,338 3,833 5,989 (75,635) As at December 31, 2018 385,843 242,370 616,237 169,876 182,370 1,596,696 As at January 1, 2019 385,843 242,370 616,237 169,876 182,370 1,596,696 Credited/(charged) to profit or loss 59,218 (33,214) (40,047) (521) (2,956) (17,520) As at December 31, 2019 445,061 209,156 576,190 169,355 179,414 1,579,176 Movements in deferred tax liabilities: Fair value Fair value adjustments arising Interest changes of Depreciation from acquisition of capitalisation financial assets and amortization subsidiaries Total As at January 1, 2018 52,934 5,972 7,659 988,848 1,055,413 Exchange realignment — — — 1,353 1,353 Credited to other comprehensive income — (3,769) — — (3,769) Acquisition of subsidiaries — — — 822,229 822,229 (Credited)/charged to profit or loss (9,102) 3,403 24,830 (27,511) (8,380) As at December 31, 2018 43,832 5,606 32,489 1,784,919 1,866,846 As at 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 Credited to profit or loss (5,825) (12,517) (8,616) (85,247) (112,205) As at December 31, 2019 38,007 7,731 23,873 1,700,088 1,769,699 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 RMB827 million (2018: RMB438 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, Net deferred tax assets 1,542,655 1,522,216 Net deferred tax liabilities 1,812,805 1,712,739 As at December 31, 2019, the Group has not recognized deferred tax assets of RMB1,467 million (December 31, 2018: RMB2,634 million) in respect of accumulated tax losses amounting to RMB6,210 million (December 31, 2018: RMB11,387 million) arising in Mainland China and deferred tax assets of RMB2,287 million (December 31, 2018: RMB1,660 million) in respect of deductible temporary differences amounting to RMB9,160 million (December 31, 2018: RMB7,992 million) as it was considered not probable that those assets would be realized. The above tax losses will expire in one to five years if not utilized. As at December 31, 2019, the expiry profile of these unprovided tax losses was analyzed as follows: December 31, December 31, Expiring in 2019 6,753,096 — 2020 711,878 690,646 2021 975,081 958,188 2022 1,211,002 1,211,002 2023 1,736,412 997,376 2024 — 2,353,070 11,387,469 6,210,282 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 11. OTHER NON-CURRENT ASSETS December 31, December 31, Financial assets - Other long-term receivables 204,718 128,673 Prepayment for mining rights 808,736 813,822 Long-term prepaid expenses 667,772 648,983 Deferred losses for sale and leaseback transactions (Note) 1,323,221 766,548 Others 1,438,198 849,817 4,237,927 3,079,170 4,442,645 3,207,843 Note: As disclosed in Note 20, the Group entered into several sale and leaseback agreements which constitute finance leases during the year. The deferred losses resulted from the sale are classified as other non-current assets and were amortized over the useful lives of the assets leased back. As at December 31, 2019 and December 31, 2018, all amounts were denominated in RMB. As at December 31, 2019 and December 31, 2018, all amounts in other non-current assets were non-interest-bearing. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
INVENTORIES | 12. INVENTORIES December 31 December 31, Raw materials 8,362,697 6,825,650 Work-in-progress 8,684,506 7,847,599 Finished goods 3,280,641 4,501,633 Spare parts 879,794 842,734 Packaging materials and others 63,227 57,870 21,270,865 20,075,486 Less: provision for impairment of inventories (811,197) (560,066) 20,459,668 19,515,420 Movements in the provision for impairment of inventories are as follows: As at January 1 457,252 811,197 Provision for impairment of inventories 2,413,098 1,503,406 Disposal of subsidiary — (772) Reversal arising from increase in net realizable value (165,510) (340,134) Written off upon sales of inventories (1,893,643) (1,413,631) As at December 31 811,197 As at December 31, 2019 and December 31, 2018, the Group had not pledged inventories for bank and other borrowings. |
TRADE AND NOTES RECEIVABLES
TRADE AND NOTES RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
TRADE AND NOTES RECEIVABLES | |
TRADE AND NOTES RECEIVABLES | 13. TRADE AND NOTES RECEIVABLES December 31 December 31, Trade receivables 5,868,796 5,273,969 Less: provision for impairment (659,261) (714,857) 5,209,535 4,559,112 Notes receivable 2,894,482 2,834,011 8,104,017 7,393,123 As at December 31, 2019, except for trade and notes receivables of the Group amounting to RMB1,111 million (December 31, 2018: RMB1,403 million) which were denominated in USD, all trade and notes receivables were denominated in RMB. Included in the Group’s trade and notes receivables are amounts due from the Group’s joint ventures and associates of RMB788 million (December 31, 2018: RMB820 million) and RMB0.03 million (December 31, 2018: RMB7 million), respectively, which are repayable on credit terms similar to those offered to the major customers of the Group. As at December 31, 2019, the Group had pledged notes receivable amounting to RMB667 million to exchange notes receivable (December 31, 2018: notes receivable amounting to RMB934 million) as set out in Note 24 to the financial statements. Trade receivables are non-interest-bearing and are generally on 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 at December 31, 2019, the ageing analysis of trade and notes receivables was as follows: December 31, December 31, Within 1 year 3,320,735 2,907,407 Between 1 and 2 years 906,302 742,477 Between 2 and 3 years 158,162 377,836 Over 3 years 1,483,597 1,246,249 5,868,796 5,273,969 Less: provision for impairment (659,261) (714,857) 5,209,535 4,559,112 Impairment under IFRS 9 for the year ended December 31, 2018 and 2019 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 groupings 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. Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix: As at December 31, 2018 Gross carrying Expected credit Expected credit amount losses loss rate (%) Alumina and primary aluminum Within 1 year 401,691 3,696 0.92 Between 1 and 2 years 55,766 6,179 11.08 Between 2 and 3 years 16,546 14,893 90.01 Over 3 years 379,213 359,759 94.87 853,216 384,527 / Trading Within 1 year 473,153 662 0.14 Between 1 and 2 years 4,146 70 1.68 Between 2 and 3 years 74 3 3.80 Over 3 years 19,422 3,787 19.50 496,795 4,522 / Energy Within 1 year 88,462 3,388 3.83 Between 1 and 2 years 3,217 685 21.28 Between 2 and 3 years 15,417 3,688 23.92 Over 3 years 12,710 6,216 48.91 119,806 13,977 / Corporate and other operating segments Within 1 year 108,627 6,539 6.02 Between 1 and 2 years 10,974 7,767 70.78 Between 2 and 3 years 4,026 3,823 94.96 Over 3 years 25,800 25,142 97.45 149,427 43,271 / 1,619,244 446,297 Individually assessed trade receivables 4,249,552 212,964 5,868,796 659,261 As at December 31, 2019 Gross carrying Expected credit Expected credit amount losses loss rate (%) Alumina and primary aluminum Within 1 year 207,602 1,910 0.92 Between 1 and 2 years 47,883 5,305 11.08 Between 2 and 3 years 20,712 18,643 90.01 Over 3 years 205,395 194,858 94.87 481,592 220,716 / Trading Within 1 year 113,596 159 0.14 Between 1 and 2 years — — 1.69 Between 2 and 3 years 1,001 41 4.05 Over 3 years 79,793 15,560 19.50 194,390 15,760 / Energy Within 1 year 348,399 13,343 3.83 Between 1 and 2 years 11,722 2,496 21.29 Between 2 and 3 years 9,073 2,170 23.92 Over 3 years 7,269 3,555 48.91 376,463 21,564 / Corporate and other operating segments Within 1 year 51,774 3,117 6.02 Between 1 and 2 years 18,129 12,831 70.78 Between 2 and 3 years 5,399 5,127 94.96 Over 3 years 6,176 6,019 97.45 81,478 27,094 / 1,133,923 285,134 Individually assessed trade receivables 4,140,046 429,723 5,273,969 714,857 Movements in the loss allowance for impairment of trade and notes receivables are as follows: As at January 1 546,102 659,261 Effect of adoption of IFRS 9 112,407 — At beginning of year 658,509 659,261 Impairment loss 64,544 236,238 Written off (33,469) (97,554) Reversal (20,466) (83,095) Others (9,857) 7 As at December 31 659,261 714,857 As at December 31, 2019, the Group has derecognized notes receivable that have been discounted or endorsed but not yet due carrying amount in aggregate of RMB34,506 million (December 31, 2018: RMB29,273 million). In addition, as at December 31, 2019, the Group has not derecognized notes receivable that have been discounted or endorsed but not yet due with a carrying amount of RMB357 million (December 31, 2018: RMB444 million). The derecognized notes receivable had a maturity of one to six months at the end of the reporting period. In accordance with the Law of Negotiable Instruments in the PRC, the holders of the derecognized notes receivable have a right of recourse against the Group if the PRC banks default (the “Continuing Involvement”). In the opinion of the directors, the Group has transferred substantially all risks and rewards relating to the derecognized notes receivable. Accordingly, it has derecognized the full carrying amounts of the derecognized notes receivable and the associated trade payables. The maximum exposure to loss from the Group’s Continuing Involvement in the derecognized notes receivable and the undiscounted cash flows to repurchase these derecognized notes receivable is equal to their carrying amounts. In the opinion of the directors, the fair values of the Group’s Continuing Involvement in the derecognized notes receivable are not significant. During the year ended December 31, 2019, the Group has not recognized any gain or loss on the date of transfer of the derecognized notes receivable. No gains or losses were recognized from the Continuing Involvement, both during the year or cumulatively. The endorsement has been made evenly throughout the year. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | 14. OTHER CURRENT ASSETS December 31, December 31, Financial assets — Deposits paid to suppliers 317,946 501,918 — Dividends receivable 47,167 82,796 — Receivables from disposal of businesses and assets 134,789 90,399 — Entrusted loans and loans receivable from third parties 1,645,205 1,544,070 — Entrusted loans and loans receivable from related parties 1,297,892 1,309,095 — Receivables from disposal of properties 1,881,513 1,948,434 — Interest receivables 40,936 40,936 — Recoverable reimbursement for freight charges 415,232 223,884 — Receivable of governments grants 129,977 517,365 — Other financial assets 787,396 1,185,466 6,698,053 7,444,363 Less: impairment allowance (1,764,068) (1,720,439) 4,933,985 5,723,924 Advances to employees 23,744 17,207 Deductible input value added tax receivables 2,189,470 2,424,004 Prepaid income tax 162,103 93,093 Prepayments to related parties for purchases 586,312 229,324 Prepayments to suppliers for purchases and others 964,158 634,548 Others 169,881 117,678 4,095,668 3,515,854 Less: provision for impairment (4,139) (2,715) 4,091,529 3,513,139 Total other current assets 9,025,514 9,237,063 As at December 31, 2019, except for amounts included in other receivables amounting to RMB37 million, which were denominated in USD (December 31, 2018: other receivables amounting to RMB48 million denominated in USD), remaining amounts in other current assets were denominated in RMB0.12 million (December 31, 2018: remaining denominated in RMB) . As at December 31, 2019, except for entrusted loans and loans receivable (December 31, 2018: except for entrusted loans and loans receivable) which were interest-bearing assets, all amounts in other current assets were non-interest-bearing (December 31, 2018: all non-interest-bearing). As at December 31, 2019, the ageing analysis of financial assets included in other current assets was as follows: December 31, December 31, Within 1 year 1,456,520 1,628,723 Between 1 and 2 years 283,844 752,731 Between 2 and 3 years 844,262 151,974 Over 3 years 4,113,427 4,910,935 6,698,053 7,444,363 Less: provision for impairment (1,764,068) (1,720,439) 4,933,985 5,723,924 Movements in the provision for impairment of other current assets are as follows: As at January 1 1,677,277 1,768,207 Effect of adoption of IFRS 9 38,502 — At beginning of year 1,715,779 1,768,207 Impairment loss 65,494 42,898 Write off (6,117) Reversal (1,731) (26,290) Others (5,218) 658 As at December 31 1,768,207 Impairment under IFRS 9 for the year ended December 31, 2018 and 2019 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 at 31, December 2018 amount losses Stage 1 – 12 months expected credit loss 1,098,455 — Stage 2 – life time expected credit loss 3,744,612 88,974 Stage 3 – life time expected credit loss with credit-impaired 1,796,526 1,675,094 6,639,593 1,764,068 As at December 31, 2019 Gross carrying amount Expected credit losses Stage 1 – 12 months expected credit loss 1,632,766 — Stage 2 – life time expected credit loss 4,052,681 82,061 Stage 3 – life time expected credit loss with credit impaired 1,758,916 1,638,378 7,444,363 1,720,439 |
CASH AND CASH EQUIVALENTS AND R
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 15. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH December 31, December 31, Restricted cash 2,165,288 1,305,781 Cash and cash equivalents 19,130,835 7,759,190 21,296,123 9,064,971 Restricted cash mainly represented deposits held for use in issued notes payable and letters of credit. As at December 31, 2019, bank balances and cash on hand of the Group were denominated in the following currencies: December 31, December 31, RMB 18,026,265 7,858,867 USD 3,256,625 1,195,720 HKD 8,321 4,423 EUR 371 1,943 AUD 2,552 — IDR 1,989 4,018 21,296,123 9,064,971 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 creditworthy banks with no recent history of default. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
SHARE CAPITAL | |
SHARE CAPITAL | 16. SHARE CAPITAL As at December 31, 2018 and 2019, all issued shares were registered and fully paid. Both A shares and H shares rank pari passu with each other. On January 31, 2018, the Company and eight investors, including Huarong Ruitong Equity Investment Management Co., Ltd. (華融瑞通股權投資管理有限公司), China Life Insurance Co., Ltd. (中國人壽保險股份有限公司), Shenzhen Zhao Ping Aluminum Investment Center (limited partnership) (深圳市招平中鋁投資有限(有限合夥)), China Pacific Life Insurance Co., Ltd. (中國太平洋人壽保險股份有限公司), China Cinda Asset Management Co., Ltd. (中國信達資產管理股份有限公司), BOC Financial Asset Investment Co, Ltd. (中銀金融資產投資有限公司), ICBC Financial Asset Investment Co., Ltd. (工銀金融資產投資有限公司) and ABC Financial Asset Investment Co., Ltd.(農銀金融資產投資有限公司) (collectively called “Transferors“) entered into the equity acquisition agreements, pursuant to which, the Company agreed to acquire and the Transferors agreed to sell their non-controlling equity interests in Chalco Shandong Co., Ltd., Chalco Zhongzhou Aluminum Co., Ltd., Baotou Aluminum Co., Ltd. and Chalco Mining Co., Ltd. (collectively called the “Target Companies”), at a consideration of approximately 2.1 billion ordinary shares of the Company, which was determined at the fair value of the non-controlling interests in the Target Companies of approximately RMB12.7 billion. Upon signing the equity acquisition agreements, together with the investment agreements and debt to equity swap agreements signed in 2017, the Transferors effectively surrendered their non-controlling interests in the Target Companies, which included the rights to profit or loss, voting rights and other shareholder rights of the Target Companies to the Group. Consequently the carrying values of the Transferors’ non-controlling interests in the Target Companies of RMB10.7 billion were derecognized, and were transferred to the capital reserve of the Group in 2018. On February 25, 2019, the Company completed the issuance of ordinary shares to these Transferors, and the total number of shares issued was 2,118,874,715. The number of the Company's authorized ordinary shares authorized, issued and outstanding was 14,903,798,236, 14,903,798,236 and 17,022,672,951 at par value of RMB1.00 per share as at December 31, 2017, 2018, and 2019 respectively. |
RESERVES
RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
RESERVES | |
RESERVES | 17. 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, 2019 | |
INTEREST-BEARING LOANS AND BORROWINGS | |
INTEREST-BEARING LOANS AND BORROWINGS | 18. INTEREST-BEARING LOANS AND BORROWINGS December 31, December 31, Long-term loans and borrowings Finance lease payables (Note 20) 4,081,270 — Lease liabilities (Note 19) — 8,369,262 Bank and other loans (Note (a)) — Secured (Note (f)) 12,608,727 13,254,721 — Guaranteed (Note (e)) 3,040,400 3,948,400 — Unsecured 30,491,613 21,632,766 46,140,740 38,835,887 Medium-term notes and bonds and long-term bonds and private placement notes (Note (b)) — Unsecured 10,094,861 16,736,755 Total long-term loans and borrowings 60,316,871 63,941,904 Current portion of lease liabilities (Note 19) — (1,358,654) Current portion of finance lease payables (Note 20) (2,328,358) — Current portion of medium-term bonds and long-term bonds (396,727) — Current portion of long-term bank and other loans (3,384,400) (3,339,687) Non-current portion of long-term loans and borrowings 54,207,386 59,243,563 December 31, December 31, Short-term loans and borrowings Bank and other loans (Note (c)) — Secured (Note (f)) 1,220,680 465,000 — Guaranteed (Note (e)) 240,000 — — Unsecured* 37,887,420 20,773,166 39,348,100 21,238,166 Short-term bonds, unsecured (Note (d)) 500,000 9,331,488 Gold leasing arrangements (Note (g)) 1,607,905 7,018,609 Current portion of lease liabilities (Note 19) — 1,358,654 Current portion of finance lease payables (Note 20) 2,328,358 — Current portion of medium-term notes 396,727 — Current portion of long-term bank and other loans 3,384,400 3,339,687 Total short-term borrowings and current portion of long-term loans and borrowings 47,565,490 42,286,604 As at December 31, 2019, except for loans and borrowings of the Group amounting to RMB17 million (December 31, 2018: RMB19 million) and RMB4,006 million (December 31, 2018: RMB3,984 million), which were denominated in JPY and USD, respectively, all loans and borrowings were denominated in RMB. As at December 31, 2019, included in the Group’s interest-bearing loans and borrowings are amounts due to subsidiaries of Chinalco (including lease liabilities) RMB9,867 million (December 31, 2018: RMB4,373 million), respectively, as set out in Note 35(b). There were no interest-bearing loans and borrowings obtained from joint ventures and associates (December 31, 2018: Nil). * As at December 31, 2019, Shandong Huayu Alloy Materials Co., Ltd. (“Shandong Huayu”), a subsidiary of the Group, has overdue short-term loans of RMB649 million. Since overdued on its bank debts, Shandong Huayu actively communicated with relevant bank creditors, participated in relevant litigation process in accordance with law, and coordinated the repayments of its debts with its own assets, and sought the understanding and support of relevant bank creditors. As of the date of approval of the report, Shandong Huayu’s default on debts did not lead to a renegotiation of debt terms. 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 3,382,325 3,337,202 2,075 2,485 3,384,400 3,339,687 Between 1 and 2 years 7,375,557 7,523,290 2,399 2,485 7,377,956 7,525,775 Between 2 and 5 years 16,586,390 9,151,573 7,197 7,455 16,593,587 9,159,028 Over 5 years 18,777,275 18,806,428 7,522 4,969 18,784,797 18,811,397 46,121,547 38,818,493 19,193 17,394 46,140,740 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, 2019 was 5.20% (2018: 4.78%). (b) Medium-term notes and bonds and long-term bonds and private placement notes Outstanding medium-term bonds & private placement notes of the Group as at December 31, 2019 are summarized as follows: Effective December 31, December 31, Face value /maturity interest rate 2018 Medium-term notes 2,000,000/2021 5.84 % 1,986,418 1,992,339 2019 Medium-term bonds 2,000,000/2024 4.31 % — 1,982,228 2016 private placement notes 3,215,000/2019 5.12 % 396,727 — 2018 Medium-term bonds 1,100,000/2021 4.66 % 1,097,003 1,098,218 2018 Medium-term bonds 900,000/2023 5.06 % 897,820 898,315 2018 Medium-term bonds 1,400,000/2021 4.30 % 1,395,970 1,397,319 2018 Medium-term bonds 1,600,000/2023 4.57 % 1,595,311 1,596,192 2019 Medium-term bonds 2,000,000/2022 3.84 % — 1,998,604 2019 Medium-term bonds 1,000,000/2022 3.50 % — 1,997,097 2019 Medium-term bonds 900,000/2023 4.99 % — 999,462 2018 Hong Kong Medium-term bonds 2,785,840/2021 5.25 % 2,725,612 2,776,981 10,094,861 16,736,755 Medium-term notes and bonds and private placement notes 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, 2019 was 4.29% (2018: 4.52%). (d) Short-term bonds Outstanding short-term bonds as at December 31, 2019 are summarized as follows: Effective December 31, December 31, Face value /maturity interest rate 2018 Ningxia short-term bonds 500,000/2019 5.00 % 500,000 — 2019 Ningxia short-term bonds 300,000/2020 3.97 % — 300,000 2019 short-term bonds 1,000,000/2020 2.45 % — 1,008,161 2019 short-term bonds 2,000,000/2020 2.63 % — 2,013,127 2019 short-term bonds 3,000,000/2020 2.00 % — 3,008,384 2019 short-term bonds 3,000,000/2020 2.30 % — 3,001,816 500,000 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: December 31, December 31, Guarantors Long-term loans Yinyi Fengdian, Neimenggu, Alashan (Note (iv)) — 150,000 Ningxia Energy (Note (i)) 892,400 1,274,400 Yinxing Energy (Note (i)) 70,000 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)) 1,600,000 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)) 246,000 10,000 Hangzhou Jinjiang (Note (v)) — 123,500 Qingzhen Industrial Investment Co., Ltd.*(“Qingzhen Investment”) (清鎮市工業投資有限公司) (Note (v)) 116,000 47,250 Guizhou Industrial Investment Group Co., Ltd.*(“Guizhou Investment”) (貴州產業投資(集團)有限責任公司) (Note (v)) 116,000 47,250 Size Industry Investment Fund (北京中鋁交銀四則產業投資基金管理合夥企業(有限合夥)) (Note (v)) — 1,000,000 3,040,400 3,948,400 Short-term loans China Great Wall Aluminum Co., Ltd.*(“China Great Wall Aluminum”) (中國長城鋁業有限公司) (Note(vi)) 40,000 — Hangzhou Jinjiang, Qingzhen Investment and Guizhou Investment (Note(v)) 200,000 — 240,000 — Note: (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. (vi) The guarantor is a subsidiary of Chinalco. * 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) Secured interest-bearing loans and borrowings The assets pledged for bank and other borrowings were set out in Note 24 to the financial statements. (g) Gold leasing arrangements In 2018 and 2019, the Company entered into several gold leasing master framework agreements, individual gold leasing agreements and general hedging agreements with Bank of Communications Concurrently, the Company entrusted the Banks to sell all leased gold and received cash of RMB6,922 million from the sale, and repaid gold leasing principal amounting to RMB1,608 million. Upon the expiry of the gold leasing agreements, the Company shall purchase the standard gold (with same quality and value according to the general hedging agreements entered into simultaneously with the leasing agreements ) to return to the Banks. The directors of the Company are of the view that the Company is free from the assumption of risk of gold price fluctuations due to the fixed repurchase price under the general hedging agreements, and therefore, this arrangement should be accounted for as short-term loans with fixed interest rates (ranging from 3.70% to 4.50)% (2018: ranging from 4.10% to 4.50%), net of the Banks' charges. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2019 | |
LEASE | |
LEASE | 19. 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) Land use rights (before January 1, 2019) December 31, Operating leases: In the Mainland China, held on: Leases less than 10 years 768,153 Leases between 10 and 50 years 2,753,882 Leases over 50 years 784,830 4,306,865 As at January 1, 3,604,201 Additions 2,838 Acquisition of subsidiaries 460,638 Transfer from property, plant and equipment (Note 6) 382,242 Government grants (34,174) Disposal of subsidiaries (728) Amortization (108,152) As at December 31, 4,306,865 As at December 31, 2018, the Group has pledged land use rights at a net carrying value amounting to RMB328 million for bank and other borrowings as set out in Note 24 to the financial statements. (b) Right-of-use assets The carrying amounts of the Group’s right-of-use assets and the movements during the year are as follows: Buildings Machinery Land use rights Total As at January 1, 2019 396,499 6,129,771 11,450,581 17,976,851 Additions 21,203 11,606 1,215,049 1,247,858 Transfer to investment properties (Note 7) — — (239,765) (239,765) Transfer to property, plant and equipment (Note 6) — (1,674,260) — (1,674,260) Government grants — (107,441) — (107,441) Contract modification (45,507) — (137,358) (182,865) Disposal of subsidiaries — — (52,668) (52,668) Depreciation (84,940) (601,891) (388,994) (1,075,825) Impairment losses — — (1,448) (1,448) As at December 31, 2019 287,255 3,757,785 11,845,397 15,890,437 As at December 31, 2019, the Group was in the process of applying for the certificates of land use rights with a carrying amount of RMB74 million (December 31, 2018: RMB687 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 at December 31, 2019, the carrying value of these land parcels only represented approximately 0.04% of the total asset value of the Group (December 31, 2018: 0.34%). 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 legally owns and 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 at December 31, 2019, the Group has pledged land use rights at a net carrying value amounting to RMB373 million for bank and other borrowings as set out in Note 24 to the financial statements. (c) 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: Lease liabilities Carrying amount at January 1, 11,010,323 New leases 82,370 Contract modification (178,575) Accretion of interest recognized during the year 487,250 Payments (3,032,106) Carrying amount at December 31, 8,369,262 Analyzed into: Current portion 1,358,654 Non-current portion 7,010,608 (d) The amounts recognized in profit or loss in relation to leases are as follows: Interest on lease liabilities 487,249 Depreciation charge of right-of-use assets 1,075,825 Expense relating to short-term leases and other leases with remaining lease terms ended on or before December 31, 2019 63,626 Expense relating to leases of low-value assets 1,800 Total amount recognized in profit or loss 1,628,500 (e) Extension and termination options The Group has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised. Set out below are the undiscounted potential future rental payments relating to periods following the exercise date of extension and termination options that are not included in the lease terms: Payable within Payable after five years five year Extension options expected not to be exercised — — Termination options expected to be exercised — — (f) The total cash outflow for leases and future cash outflows relating to leases that have not yet commenced are disclosed in Notes 34(c) and 42, respectively, to the financial statements The Group as a lessor Rental income recognized by the Group during the year was RMB318 million (2017: RMB153 million, 2018: RMB240 million), details of which are included in Note 4 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 is not material. |
FINANCE LEASE PAYABLES
FINANCE LEASE PAYABLES | 12 Months Ended |
Dec. 31, 2019 | |
FINANCE LEASE PAYABLES | |
FINANCE LEASE PAYABLES | 20. FINANCE LEASE PAYABLES These leases were classified as finance leases prior to IFRS 16 becoming effective on January 1, 2019. At December 31, 2018, the total future minimum lease payments under finance leases and their present values were as follows: Minimum lease Present value of minimum payments lease payments December 31, December 31, Amounts payable: Within one year 2,518,653 2,328,358 In the second year 1,161,490 1,075,050 In the third to fifth years, inclusive 707,716 664,889 After five years 13,238 12,973 Total minimum finance lease payments 4,401,097 4,081,270 Future finance charges (319,827) Total net finance lease payables (Note 18) 4,081,270 Portion classified as current liabilities (Note 18) (2,328,358) Non-current portion 1,752,912 During the year ended December 31, 2018, the Group entered into various sale and leaseback agreements with Pingan International Financial Leasing Co., Ltd. (平安國際融資租賃有限公司), Tianjin Far East Hongxin Finance Leasing Co., Ltd. (“遠東宏信(天津)融資租賃有限公司”),China Aviation International Leasing Co., Ltd. (“中航國際租賃有限公司”), Zhaoyin Leasing Co., Ltd.(“招銀租賃有限公司”) and Chalco Financial Leasing Co., Ltd.*(“中鋁融資租賃有限公司”), which is a related party of the Group, respectively, under which the Group sold machineries and construction in progress and leased them back. The lease terms range from one to six years and the lease rentals are payable by installments which bear interest at prevailing lending rates. * The English names represent the best effort made by the management of the Group in translating the Chinese name of the companies as they do not have any official English names. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT LIABILITIES | |
OTHER NON-CURRENT LIABILITIES | 21. OTHER NON-CURRENT LIABILITIES December 31, December 31, Financial liabilities -Long-term payables for mining rights 788,133 1,108,075 -Other financial liabilities 52,926 45,412 841,059 1,153,487 Obligations in relation to early retirement schemes ( Note (i)) 777,305 426,737 Deferred government grants (Note (ii)) 314,045 245,916 Deferred gain relating to sales and leaseback agreements 240,661 125,707 Contract liabilities 132,844 125,758 Provision for rehabilitation 121,033 131,248 Others 11,217 10,721 1,597,105 1,066,087 2,438,164 2,219,574 Note: (i) Obligations in relation to early retirement schemes From 2014, certain subsidiaries and branches implemented certain early retirement benefit schemes which allow qualified employees to early retire on a voluntary basis. The Group undertakes the obligations to pay the early retirement 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, 2019. As at December 31, 2019, the current portion of the Payments within one year was reclassified to “Other payables and accrued liabilities”. As at December 31, 2019, obligations in relation to retirement benefits under the Group’s early retirement schemes are as follows: As at January 1, 1,438,440 1,293,841 Provision made during the year (Note 29) 447,660 210,428 Interest costs 62,801 18,260 Payment during the year (655,060) (680,888) As at December 31, 1,293,841 841,641 Non-current 777,305 426,737 Current (Note 22) 516,536 414,904 1,293,841 841,641 (ii) |
OTHER PAYABLES AND ACCRUED LIAB
OTHER PAYABLES AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER PAYABLES AND ACCRUED LIABILITIES | |
OTHER PAYABLES AND ACCRUED LIABILITIES | 22. OTHER PAYABLES AND ACCRUED LIABILITIES December 31, December 31, Financial liabilities -Payable for capital expenditures 5,694,632 6,832,365 -Accrued interest 396,286 494,341 -Payables withheld as guarantees and deposits 1,102,358 1,339,722 -Dividends payable by subsidiaries to non-controlling shareholders 543,207 518,360 -Consideration payable for investment projects 280,856 141,740 -Current portion of payables for mining rights 210,325 372,824 -Others 1,058,798 1,083,646 9,286,462 10,782,998 Taxes other than income taxes payable * 831,151 732,264 Accrued payroll and bonus 220,851 21,902 Staff welfare payables 391,824 258,448 Current portion of obligations in relation to early retirement schemes (Note 21) 516,536 414,904 Contribution payable for pension insurance 30,145 20,386 Output value-added tax on pending 252,691 210,283 Others 37,492 999 2,280,690 1,659,186 11,567,152 12,442,184 * Taxes other than income taxes payable mainly comprise accruals for value-added tax, resource tax, city construction tax and education surcharge. As at December 31, 2019, except for other payables and accrued liabilities of the Group amounting to RMB825 million and RMB0.25 million, which were denominated in USD and HKD, respectively (December 31, 2018: RMB240 million and RMB0.27 million which were denominated in USD and HKD respectively), all payables and accrued liabilities were denominated in RMB. |
TRADE AND NOTES PAYABLES
TRADE AND NOTES PAYABLES | 12 Months Ended |
Dec. 31, 2019 | |
TRADE AND NOTES PAYABLES | |
TRADE AND NOTES PAYABLES | 23. TRADE AND NOTES PAYABLES December 31, December 31, Trade payables 8,570,102 7,858,214 Notes payable 5,439,162 4,726,541 14,009,264 12,584,755 As at December 31, 2019, except for trade and notes payables of the Group amounting to RMB52 million (December 31, 2018: RMB213 million) which were denominated in USD, all trade and notes payables were denominated in RMB. The ageing analysis of trade and notes payables is as follows: December 31, December 31, Within 1 year 13,598,039 12,145,985 Between 1 and 2 years 140,665 229,221 Between 2 and 3 years 47,654 30,713 Over 3 years 222,906 178,836 14,009,264 12,584,755 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, 2019 | |
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 18. As at December 31, 2018, a summary of these pledged assets was as follows: December 31, December 31, Property, plant and equipment (Note 6) 4,168,239 4,946,338 Land use rights (Note 19) 328,116 — Right-of-use assets (Note 19) — 373,048 Intangible assets (Note 5) 772,597 757,269 Notes receivable (Note 13) 933,551 667,190 Investments in associates (Note 8) 535,610 538,787 6,738,113 7,282,632 As at December 31, 2019, 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 RMB1,209 million (December 31, 2018: RMB1,354 million ), and the non-current portion of long-term loans and borrowings amounting to RMB10,265 million (December 31, 2018: RMB10,155 million ) were secured by the contractual right to charge users for electricity generated in the future. |
PROFIT BEFORE INCOME TAX
PROFIT BEFORE INCOME TAX | 12 Months Ended |
Dec. 31, 2019 | |
PROFIT BEFORE INCOME TAX | |
PROFIT BEFORE INCOME TAX | 25. PROFIT BEFORE INCOME TAX An analysis of profit before income tax is as follows: Purchase of inventories in relation to trading activities 98,282,748 85,443,397 104,928,962 Raw materials and consumables used, and changes in work-in-progress and finished goods 34,550,042 43,197,855 35,573,467 Power and utilities 17,274,948 17,650,214 16,755,424 Depreciation of right-of-use assets — — 1,075,825 Depreciation and amortization (Other than depreciation of right-of-use assets) 7,064,747 8,055,753 7,714,418 Employee benefit expenses (Note 29) 6,975,281 7,433,027 7,773,170 Repairs and maintenance 1,716,940 1,750,194 1,867,160 Transportation expenses 1,768,604 1,893,659 950,716 Logistic cost 1,894,061 2,794,733 2,469,531 Taxes other than income tax expense (Note (i)) 858,344 936,546 904,088 Rental expenses for land use rights and buildings 497,356 649,640 — Packaging expenses 267,547 261,626 277,785 Research and development expenses 498,234 626,873 940,828 Auditors’ remuneration expense (Note (ii)) 31,815 30,852 33,337 Note: (i) Taxes other than income tax expense mainly comprise surcharges, land use tax, property tax and stamp duties. (ii) During the year ended December 31, 2019, auditors’ remuneration included audit and non-audit services provided by Ernst & Young, including Ernst & Young, Hong Kong and Ernst & Young Hua Ming LLP, amounting to RMB27.8 million (2017:RMB23.1 million, 2018: RMB26.7 million), and services provided by other auditors. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2019 | |
OTHER INCOME | |
OTHER INCOME | 26. OTHER INCOME For the year ended December 31,2019, government grants amounting to RMB79 million (2017: RMB90 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, 2019 | |
OTHER GAINS, NET | |
OTHER GAINS, NET | 27. OTHER GAINS, NET Gain on disposal of subsidiaries (Note 39) 325,022 3,517 261,187 Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income (Note (1)) 79,408 109,914 97,775 Realized (losses)/gains on futures, forward and option contracts, net (Note (2)) (23,951) 40,492 60,671 Unrealized (losses)/gains on futures, forward and option contracts, net (Note (2)) (131,073) 100,967 (9,851) Gain on disposal of property, plant and equipment and land use rights, net (Note (3)) 76,739 272,098 259,684 Gain on previously held equity interests remeasured at acquisition-date fair value 117,640 748,086 — Gain on share of associates’ net assets (Note 8(b)), (Note (4)) — — 295,288 (Loss)/gain on disposal of investment in a joint venture/an associate (Note (5)) — (1,904) 159,514 Gain on disposal of business (Note (6)) — — 262,677 Others (124,383) (351,266) (139,676) 319,402 921,904 1,247,269 Notes: (1) In 2019, the dividends of other equity instrument investments were mainly RMB98 million from Size Industry Investment Fund (2017: RMB79 million, 2018: RMB109 million). (2) The Group does not apply hedge accounting for these futures, forward and option contracts. (3) During the year, the transactions contributed to the gain on disposal of electrolytic aluminum capacity quota and property, plant and equipment mainly include the following: (a) Pursuant to the agreement entered into between Shanxi Huasheng Co., Ltd. (“Shanxi Huasheng”) and Yixin Aluminum on May 28, 2019, the electrolytic aluminum capacity quota of 170,000 tonnes was transferred from Shanxi Huasheng to Yixin Aluminum. A gain of RMB800 million from disposal of the aluminum capacity quota was recorded by the Group in the current period. The transfer constitutes a related party transaction which was disclosed in Note 35 (a). (b) The fixed assets related to the electrolytic aluminum production line of Guizhou Branch have been disposed of, and the Company recognized the disposal loss of RMB541 million from the difference between the transfer price and carrying amount of the assets. (4) As disclosed in Note 8 (b), the Group recognized a gain of RMB204 million and a gain of RMB91 million on barging purchase of associates Yunnan Aluminum and Yixin Aluminum, respectively. (5) In March 2019, Ningxia Energy transferred, through an auction transaction, its 50% equity interest in Ningxia Zhongning Power Co., Ltd. to Ningxia Tianyuan Manganese Industry Group Co., Ltd. A gain of RMB159 million from disposal of investment in a joint venture was recorded by the Group in the current year. (6) The Company used gallium metal business to increase its investment to an associate China Rare Earth Co., Ltd. (“China Rare Earth”), and recognized a gain of RMB263 million. |
FINANCE INCOME_FINANCE COSTS
FINANCE INCOME/FINANCE COSTS | 12 Months Ended |
Dec. 31, 2019 | |
FINANCE INCOME/FINANCE COSTS | |
FINANCE INCOME/FINANCE COSTS | 28. FINANCE INCOME/FINANCE COSTS An analysis of finance income/finance costs is as follows: Finance income - interest income (706,690) (492,234) (261,151) Interest expense 5,175,154 5,202,639 4,665,329 Less: interest expense capitalized in property, plant and equipment (Note 6) (344,452) (517,589) (289,499) Interest expense, net of capitalized interest 4,830,702 4,685,050 4,375,830 Interest on lease liabilities — — 487,249 Amortization of unrecognized finance expenses 241,099 205,335 60,415 Exchange (gain)/loss, net 131,621 (7,889) (2,315) Finance costs 5,203,422 4,882,496 4,921,179 Capitalization rate during the year (Note 6) 4.41% to 8.00% 4.54% to 7.00% 4.00% to 6.96% |
EMPLOYEE BENEFIT EXPENSES
EMPLOYEE BENEFIT EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT EXPENSES | |
EMPLOYEE BENEFIT EXPENSES | 29. EMPLOYEE BENEFIT EXPENSES An analysis of employee benefit expenses is as follows: Salaries and bonus 4,205,361 4,636,972 4,939,758 Housing fund 395,489 414,440 488,574 Staff welfare and other expenses * 1,576,552 1,896,365 2,035,931 Employment expense in relation to early retirement schemes (Note 21) 767,632 447,660 210,428 Employment expenses in relation to termination benefit 30,247 37,590 98,479 6,975,281 7,433,027 7,773,170 * Staff welfare and other expenses include staff welfare, staff union expenses, staff education expenses, unemployment insurance expenses, pension insurance expenses, etc. Employee benefit expenses include remuneration payables to directors, supervisors and senior management as set out in Note 30. |
DIRECTORS' AND SUPERVISORS' REM
DIRECTORS' AND SUPERVISORS' REMUNERATION | 12 Months Ended |
Dec. 31, 2019 | |
DIRECTORS' AND SUPERVISORS' REMUNERATION | |
DIRECTORS' AND SUPERVISORS' REMUNERATION | 30. 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: Fees 768 756 780 Basic salaries, housing fund, other allowances and benefits in kind 1,370 1,849 4,665 Pension cost 166 234 513 2,304 2,839 5,958 The remuneration of each director and supervisor of the Company for the year ended December 31, 2017 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Yu Dehui — — — — — Lu Dongliang — — — — — Jiang Yinggang — 822 — 83 905 — 822 — 83 905 Non-executive Directors: Ao Hong — — — — — Liu Caiming — — — — — Wang Jun 150 — — — 150 Chen Lijie 206 — — — 206 Lie-A-Cheong Tai-Chong, David 206 — — — 206 Hu Shihai 206 — — — 206 768 — — — 768 Supervisors: Liu Xiangmin — — — — — Wang Jun — — — — — Wu Zuoming — 548 — 83 631 — 548 — 83 631 Total 768 1,370 — 166 2,304 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 Dehui (Note (i)) — — — — — Lu Dongliang (Note (i)) — — — — — Jiang Yinggang — 762 — 90 852 Zhu Runzhou — 438 — 54 492 — 1,200 — 144 1,344 Non-executive Directors: Ao Hong — — — — — Liu Caiming — — — — — Wang Jun 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 — 649 — 90 739 Total 756 1,849 — 234 2,839 The remuneration of each director and supervisor of the Company for the year ended December 31, 2019 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Yu Dehui (Note (i)) — — — — — Lu Dongliang (Note (i)) — — — — — He Zhihui — 885 — 73 958 Zhu Runzhou — 833 — 88 921 Jiang Yinggang — 889 — 88 977 — 2,607 — 249 2,856 Non-executive Directors: Ao Hong — — — — — Wang Jun (Note (ii)) 150 — — — 150 Chen Lijie 210 — — — 210 Lie-A-Cheong Tai-Chong, David 210 — — — 210 Hu Shihai 210 — — — 210 780 — — — 780 Supervisors: Ye Guohua (Note (iii)) — — — — — Ou Xiaowu (Note (iii)) — — — — — Shan Shulan (Note (iii)) — — — — — Guan Xiaoguang (Note (iii)) — 710 — 88 798 Yue Xuguang (Note (iii)) — 770 — 88 858 Wu Zuoming — 578 — 88 666 — 2,058 — 264 2,322 Total 780 4,665 — 513 5,958 Note: (i) On February 21, 2019, Mr. Yu Dehui resigned as the chairman and an executive Director of the Company, and Mr. Lu Dongliang was elected as the chairman of the sixth session of the Board of the Company at the 39th meeting of the sixth session of the Board. (ii) On February 20, 2019, the appointment of Mr. Wang Jun as the chief financial officer and the Secretary to the Board (Company Secretary) of the Company was approved at the 38th meeting of the sixth session of the Board of the Company. (iii) On June 25, 2019, Mr. Ye Guohua was elected as the chairman of the seventh session of the Supervisory Committee of the Company at the first meeting of the seventh session of the Supervisory Committee of the Company. On June 25, 2019, Ms. Shan Shulan were elected as the shareholder representative Supervisors of the seventh session of the Supervisory Committee of the Company at the 2018 annual general meeting of the Company. On June 25, 2019, Mr. Guan Xiaoguang was elected as an employee representative Supervisor of the seventh session of the Supervisory Committee of the Company at the employees’ representatives meeting of the Company. On December 10, 2019, Mr. Ou Xiaowu, nominated by Chinalco, the controlling shareholder of the Company on October 24, 2019, was elected as a shareholder representative Supervisor of the seventh session of the Supervisory Committee of the Company at the 2019 third extraordinary general meeting of the Company. On December 10, 2019, Mr. Yue Xuguang was elected as an employee representative Supervisor of the seventh session of the Supervisory Committee of the Company at the employees’ representatives meeting of the Company. The remuneration of the directors and supervisors of the Company fell within the following band: Number of individuals Nil to RMB1,000,000 15 12 14 During the year, no options were granted to the directors or the supervisors of the Company (2017: 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 (2017: Nil, 2018: Nil). No directors or supervisors of the Company waived any remuneration during the years 2017, 2018 and 2019. (b) Five highest paid individuals During the year ended December 31, 2019, the five highest paid employees of the Group include two directors and one supervisor (2017: one director and one supervisor, 2018: one director and one supervisor) whose remuneration is reflected in the analysis presented above. The remuneration payable to the remaining three individuals during 2019 (2017: three , 2018: three) is as follows: Basic salaries, housing fund, other allowances and benefits in kind 2,460 1,305 1,670 Discretionary bonuses — — — Pension costs 249 165 137 2,709 1,470 1,807 The number of the remaining two highest paid individuals during 2019 (2017: three, 2018: two) whose remuneration fell within the following band is as follows: Number of individuals Nil to RMB1,000,000 3 2 2 |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX EXPENSE | |
INCOME TAX EXPENSE | 31. INCOME TAX EXPENSE Current income tax expense 844,896 755,264 720,405 Deferred tax (benefit)/expense (201,190) 67,255 (94,685) 643,706 822,519 625,720 In general, the Group’s PRC entities are subject to PRC corporate income tax at the standard rate of 25% (2017: 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% (2017: 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: Profit before income tax 3,049,175 2,264,514 2,113,801 Tax expense calculated at the statutory tax rate of 25% (2017 and 2018: 25%) 762,294 566,129 528,450 Tax effects of: Preferential income tax rates applicable to certain branches and subsidiaries (287,081) (268,665) (464,880) Impact of change in income tax rate 98,150 23,425 4,594 Tax losses with no deferred tax assets recognized 296,728 434,103 588,267 Deductible temporary differences with no deferred tax assets recognized 308,657 384,072 41,695 Utilization of previously unrecognized tax losses and deductible temporary differences (212,309) (52,962) (17,952) Tax incentive in relation to deduction of certain expenses (43,846) (62,172) (50,921) Non-taxable income (126,101) (254,337) (173,686) Expenses not deductible for tax purposes 49,564 54,959 56,448 Write-off of unrecoverable deferred tax assets previously recognized 49,808 183,195 187,433 Profits and losses attributable to joint ventures and associates — 40,029 (79,720) Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized (274,726) (233,940) (3,868) Adjustments in respect of current tax of previous periods 22,568 8,683 9,860 Income tax expense 643,706 822,519 625,720 Effective tax rate 21 % 36 % 30 % Share of income tax expense of associates and joint ventures of RMB79 million (2017: RMB86 million, 2018: RMB106 million) and RMB54 million (2017: RMB11 million, 2018: RMB 48 million) is included in “Share of profits and losses of associates” and “Share of profits and losses of joint ventures“, respectively. |
EARNINGS PER SHARE ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT | |
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT | 32. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT Profit attributable to ordinary equity holders of the parent (RMB) 1,413,221 707,460 850,999 Other equity instruments’ distribution reserved (RMB) (110,000) (129,282) (219,249) 1,303,221 578,178 631,750 Weighted average number of ordinary shares in issue 14,903,798,236 14,903,798,236 14,903,798,236 Effect of equity exchange arrangement — 1,938,915,502 — Issuance of share capital* (Note 16) — — 2,118,874,715 14,903,798,236 16,842,713,738 17,022,672,951 Basic and diluted earnings per share (RMB) 0.087 0.034 0.037 * The Group had no potentially dilutive ordinary shares in issue during the years ended December 31, 2019, 2018 and 2017. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2019 | |
DIVIDENDS | |
DIVIDENDS | 33. DIVIDENDS According to the articles of association of the Company, the Company considers that the maximum limit of profit appropriation to its shareholders is the lowest of: (i) the sum of the net profit and the opening retained earnings for the current period in accordance with IFRSs; (ii) the sum of the net profit 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 26, 2020, the directors did not propose any final dividend for the year ended December 31, 2019, which is to be approved by the shareholders. |
NOTES TO THE CONSOLIDATED STATE
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2019 | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | 34. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (a) Reconciliation of profit before taxation to cash generated from operations Notes Cash flows generated from operating activities Profit before income tax 3,049,175 2,264,514 2,113,801 Adjustments for: Share of profits and losses of joint ventures 8(a) (8,151) 199,452 (270,115) Share of profits and losses of associates 8(b) 165,249 (39,335) (48,767) Depreciation of property, plant and equipment 6 6,554,842 7,499,322 7,094,716 Depreciation of investment properties 7 14,105 22,229 26,559 Depreciation of right-of-use assets 19 — — 1,075,825 Gain on disposal of other property, plant and equipment and land use rights, net 27 (76,739) (101,098) (242,960) Impairment losses on property, plant and equipment 6 16,200 46,484 259,354 Impairment losses of intangible assets 5 8,134 — 1,448 Amortization of intangible assets 5 275,877 295,901 338,938 Amortization of land use rights 19 91,579 108,152 — Amortization of prepaid expenses included in other non-current assets 127,793 130,148 254,205 Realized and unrealized losses/(gains) on futures, option and forward contracts 27 155,024 (141,459) (50,820) Gain on previously held equity interest remeasured at acquisition-date fair value 27 (117,640) (748,086) — Gain on disposals and deemed disposals of subsidiaries 27 (325,022) (3,517) (261,187) Loss/(gains) on disposal of investments in associates 27 — 1,904 (159,514) Gain on disposal of business 27 — — (262,677) Gain on share of associates’ net assets 27 — — (295,288) Gain on disposal of and dividends from equity investments 27 (79,408) (109,914) (97,775) Receipt of government subsidies (202,359) (158,109) (112,141) Interest income (183,036) — — Finance costs 28 5,204,337 4,882,496 4,921,179 Change in special reserve 58,743 6,605 (23,085) Others (16,951) 75,381 (11,555) 14,711,752 14,231,070 14,250,141 Changes in working capital: Decrease/(increase) in inventories (2,662,507) 1,194,454 929,027 Increase in trade and notes receivables (1,963,178) (2,473,006) (1,050,860) Decrease in other current assets 1,275,535 916,681 (360,639) (Increase)/decrease in restricted cash (137,745) 530,284 859,507 (Increase)/decrease in other non-current assets (422,845) 425,739 547,287 (Decrease)/increase in trade and notes payables 1,600,975 (5,559) (1,385,081) Increase/(decrease) in other payables and accrued liabilities 1,672,658 (945,270) (560,914) Increase in other non-current liabilities 81,878 105,386 (206,354) Cash generated from operations 14,156,523 13,979,779 13,022,114 PRC corporate income taxes paid (949,383) (947,703) (548,625) Net cash generated from operating activities 13,207,140 13,032,076 12,473,489 Non-cash transactions of investing activities and financing activities Capital injection to an associate and joint ventures by non-cash assets 186,450 — — Equity exchange arrangement — 10,735,214 — Investment in a joint venture used gallium business — — 352,848 Non-controlling shareholders forfeited sharing of profit or equity interest — — 149,322 Endorsement of notes receivables accepted from the sale of goods or services for purchase of property, plant and equipment 2,384,046 1,504,162 Acquisition of equity investments designated at fair value through other comprehensive income by exchanging equity in a subsidiary — — 350,911 Acquisition of businesses at non-cash consideration 50,058 70,087 — Finance lease 44,342 113,601 — (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 were, or future cash flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from financing activities. Financial liabilities Financial included in liabilities Financial other current included in liabilities at fair payables and other non- Interest bearing value through Trade and accrued current loans and profit or loss notes payables expenses liabilities borrowings Total As at January 1, 2018 89,426 12,360,441 11,363,236 769,061 103,270,773 127,852,937 Net cash generated from operating activities — (3,996) (624,504) — — (628,500) Net cash flows from/(used in) investing activities (87,660) 1,646,299 (193,345) — 7,263,251 8,628,545 Payment of upfront interest of gold leasing arrangement — — — — 2,323,105 2,323,105 Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — — — — 13,185,034 13,185,034 Repayments of medium-term notes and short-term bonds — — — — (21,815,000) (21,815,000) Repayments of gold leasing arrangement — — — — (7,519,283) (7,519,283) Drawdown of short-term and long-term bank and other loans — — — — 76,899,591 76,899,591 Repayments of short-term and long-term bank and other loans — — (1,000,000) — (69,560,667) (70,560,667) Proceeds from finance lease, net of deposit and transaction costs — — — — 1,204,843 1,204,843 Capital elements of finance lease rental payment — — — — (3,915,404) (3,915,404) Dividends paid by subsidiaries to non-controlling shareholders — — 277,771 — — 277,771 Amortization of unrecognized finance expenses and interest expense — — — 6,090 521,295 527,385 Interest paid — — (460,147) (24,736) (85,578) (570,461) Reclassification — — (90,644) 90,644 — — Net cash (used in)/ generated from financing activities — — (1,273,020) 71,998 (8,762,064) (9,963,086) Net foreign exchange differences — 6,520 14,095 — 916 21,531 As at December 31, 2018 1,766 14,009,264 9,286,462 841,059 101,772,876 125,911,427 Financial liabilities Financial included in liabilities Financial other current included in liabilities at fair payables and other non- Interest bearing value through Trade and accrued current loans and profit or loss notes payables expenses liabilities borrowings Total As at January 1, 2019 1,766 14,009,264 9,286,462 841,059 101,772,876 125,911,427 Net cash generated from operating activities — (1,385,080) 470,478 — — (914,602) Net cash flows from/(used in) investing activities (961) (41,607) 622,995 474,548 7,157,695 8,212,670 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 — — — — 37,965,385 37,965,385 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 and other loans — — — — 40,669,197 40,669,197 Repayments of short-term and long-term bank and other loans — — — — (66,105,388) (66,105,388) Principal portion of lease payment — — — — (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 cash (used in)/ generated from financing activities — — 373,715 (162,120) (7,431,725) (7,220,130) Net foreign exchange differences — 2,178 10,408 31,321 43,907 As at December 31, 2019 805 12,584,755 10,764,058 1,153,487 101,530,167 126,033,272 (c) Total cash outflow for leases Within operating activities 65,426 Within financing activities 3,032,106 3,097,532 |
SIGNIFICANT RELATED PARTY BALAN
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS | |
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS | 35. SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS The Company is controlled by Chinalco, the 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 is able to control or 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 Note Sales of goods and services rendered: Sales of materials and finished goods to: (i) Chinalco and its subsidiaries (ix) 10,658,507 11,248,625 13,612,817 Associates of Chinalco 682,992 897,642 514,414 Joint ventures 2,031,159 4,462,670 5,676,548 Associates 724,658 2,626,780 3,812,565 14,097,316 19,235,717 23,616,344 Provision of engineering, construction and supervisory services to: (iii) Chinalco and its subsidiaries (ix) 77,095 5,981 — Joint ventures 2,046 — — Associates — 1,725 — 79,141 7,706 — Provision of utility services to: (ii) Chinalco and its subsidiaries (ix) 581,566 620,552 687,290 Associates of Chinalco 8,776 15,719 4,062 Joint ventures 118,280 186,672 263,436 Associates 1,122 24,309 35,650 709,744 847,252 990,438 Rental revenue of land use rights and buildings from: (vi) Chinalco and its subsidiaries (ix) 40,875 31,551 52,571 Associates of Chinalco — — 65 Joint ventures 426 1,545 1,967 Associates — 1,511 775 41,301 34,607 55,378 Purchases of goods and services: Purchases of engineering, construction and supervisory services from: (iii) Chinalco and its subsidiaries (ix) 1,071,283 2,088,338 2,949,866 Joint ventures — 2,100 69,332 Associates 134,072 405,993 218,616 1,205,355 2,496,431 3,237,814 Purchases of key and auxiliary materials, equipment and finished goods from: (iv) Chinalco and its subsidiaries (ix) 3,850,073 3,513,420 8,161,223 Associates of Chinalco — 18,917 18 Joint ventures 6,516,087 8,182,251 2,647,234 Associates 1,175 2,108,072 1,893,449 10,367,335 13,822,660 12,701,924 Provision of social services and logistics services by: (v) Chinalco and its subsidiaries (ix) 326,830 312,062 309,180 Provision of utility services by: (ii) Chinalco and its subsidiaries (ix) 1,412,722 992,827 763,812 Associates of Chinalco — 96,510 100,835 Joint ventures 19,537 26,269 280,523 Associates — 77,432 8,326 1,432,259 1,193,038 1,153,496 Notes Purchases of goods and services: (continued) Provision of other services by: (vii) A joint venture 269,204 226,280 272,220 Rental expenses /lease liabilities payments for buildings and land use rights charged by: (vi) Chinalco and its subsidiaries (ix) 509,848 501,866 499,191 Other significant related party transactions: Borrowing from a subsidiary of Chinalco (viii), (ix) 4,010,000 6,525,000 3,890,000 Interest expense on borrowings, discounted notes and factoring arrangement from subsidiaries of Chinalco 225,934 143,415 141,991 Entrusted loans and other borrowings to: Joint ventures 500,000 — — Associates 1,100,000 — — 1,600,000 — — Interest income on entrusted loans and other borrowings: Joint ventures 41,005 — — An associate 24,425 — — 65,430 — — Interest income from the unpaid disposal proceeds from: Chinalco and its subsidiaries 117,587 — — Consideration to acquire the shares in the subsidiaries of Chinalco (xiv) Investment to Yunnan Aluminum — — 1,287,608 Investment to Yixin Aluminum — — 850,000 — — 2,137,608 Disposal of electronic aluminium capacity quota to a subsidiary of Chinalco (xiii) — — 800,000 Disposal of assets under a sale and leaseback contract to a subsidiary of Chinalco (xi) 600,000 224,000 500,000 Finance lease under a sale and leaseback contract from a subsidiary of Chinalco (xi), (ix) 600,036 224,000 558,924 Trade receivable factoring arrangement from a subsidiary of Chinalco (ix) 1,570,000 470,101 136,656 Discounted notes receivable to a subsidiary of Chinalco (viii) 523,253 756,000 679,517 Provision of financial guarantees to: A joint venture (x) 18,350 12,450 12,450 Financial guarantees provided by: Subsidiaries of Chinalco 4,000 — — 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 summarized 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 key 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 Rights 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 rent 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 13A of the Listing Rules. (x) In December 2006, Ningxia Energy, a subsidiary of the Company, entered into a financial guarantee contract with China Construction Bank providing a financial guarantee to Tian Jing Shen Zhou Wind Power Co., Ltd, a joint venture of the Company, for its 14-year bank loan amounting to RMB35 million. As at December 31, 2019, the outstanding amount of the guarantee was RMB6 million. (xi) As disclosed in Note 20, the Group has entered into several sales and leaseback contracts with Chalco Financial Leasing Co., Ltd.. (xii) As disclosed in Note 38, the Group acquired a 100% equity interest in Suzhou Zhongcai from Zhongse Technology and Suzhou Research Institute, which constituted a related party transaction. (xiii) As disclosed in Note 27, in May 2019, the Group entered into transactions with its fellow subsidiaries including the disposals of subsidiaries and disposal of electronic Aluminum capacity quota. These transactions constituted related party transactions. (xiv) As disclosed in Note 8 (b), the Company completed the acquisitions of equity interests in Yunnan Aluminum and Yixin Aluminum, respectively. These transactions constituted related party transactions. * The English names represent the best effort made by management of the Group in translating the Chinese names of the companies as they do not have any official English names. (b) Balances with related parties Other than those disclosed elsewhere in the consolidated financial statements, the outstanding balances with related entities at the year end are as follows: December 31, 2018 December 31, 2019 Cash and cash equivalents deposited with A subsidiary of Chinalco * 9,101,541 3,285,093 Trade and notes receivables Chinalco and its subsidiaries 1,281,395 1,054,168 Associates of Chinalco 18,655 6,034 Joint ventures 819,878 788,183 Associates 6,615 25 2,126,543 1,848,410 Provision for impairment of receivables (77,657) (17,815) 2,048,886 1,830,595 * 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 and October 26, 2017, the Company renewed the financial service agreement with Chinalco Finance with a validation term of three years ending on October 26, 2020. December 31, December 31, Other current assets Chinalco and its subsidiaries 830,615 482,195 Joint ventures 1,424,678 1,503,505 Associates 29,701 47,743 2,284,994 2,033,443 Provision for impairment of other current assets (40,830) (30,509) 2,244,164 2,002,934 Other non-current assets Associates 111,845 111,845 Interest-bearing loans and borrowings Subsidiaries of Chinalco (including lease liabilities) 4,373,033 9,857,187 Trade and notes payables Chinalco and its subsidiaries 404,278 334,840 Joint ventures 631,570 527,744 Associates 13,033 9,789 Associates of Chinalco 4,012 917 1,052,893 873,290 December 31, December 31, Other payables and accrued liabilities Chinalco and its subsidiaries 1,930,947 1,810,514 Associates of Chinalco 17,128 17,056 Associates 148,978 80,012 Joint ventures 8,860 73,823 2,105,913 1,981,405 December 31, December 31, Contract Liabilities Chinalco and its subsidiaries 22,307 29,210 Associates of Chinalco 20 — Associates 12,451 223 Joint ventures 94,367 56,010 129,145 85,443 As at December 31, 2019, included in long-term loans and borrowings and short-term loans and borrowings were from other state-owned enterprises amounting to RMB35,029 million (December 31, 2018: RMB42,553 million) and RMB29,781 million (December 31, 2018: RMB41,189 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 key management personnel Fees 768 756 780 Basic salaries, housing fund, other allowances and benefits in kind 3,830 3,953 6,945 Pension costs 415 482 715 5,013 5,191 8,440 * The year-on-year increase in the salaries of key management personnel was mainly due to the Company's addition of a salaried supervisor this year and changes in the positions of some key management personnel, which caused the year-on-year changes in the scope and duration of salaries paid by the company. Details of directors' remuneration are included in Note 30 to the financial statements. (d) Commitments with related parties As at December 31, 2019 and 2018, except for the other capital commitments disclosed in Note 42(c) 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, 2019 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | 36. FINANCIAL AND CAPITAL RISK MANAGEMENT 36.1 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 minimise 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 Foreign currency risk primarily arises from certain significant foreign currency deposits, trade and notes receivables, trade and notes payables, advances paid to suppliers, and short-term and long-term loans denominated in United States dollars (“USD”), Australian dollars (“AUD”), Euro (“EUR”), Japanese yen (“JPY”), and Hong Kong dollars (“HKD”). Related exposures are disclosed in Notes 13, 14, 15, 18, 22, 23 and 40 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 at December 31, 2019, the Group only had significant exposure to USD. As at December 31, 2019, if RMB had strengthened/weakened by 5% against USD with all other variables held constant, the profit for the year would have been approximately RMB95 million higher/lower (2018: RMB10 million lower/higher), mainly as a result of foreign exchange gains and losses arising from the translation of USD-denominated borrowings, other payables and medium-term notes. Profit was more sensitive to the fluctuation in the RMB/USD exchange rates in 2019 than in 2018, mainly due to the increase 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 any significant foreign currency risk arising from these foreign currency denominated assets and liabilities as at December 31, 2019 and 2018. (ii) Interest rate risk As at December 31, 2019, as the Group had no significant interest-bearing assets except for bank deposits (Note 15) and entrusted loans (Note 14), the Group’s income and operating cash flows are substantially independent of changes in market interest rates. 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 at December 31, 2019 and 2018. 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 at December 31, 2019, if interest rates had been 100 basis points (December 31, 2018: 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 RMB451 million lower/higher (2018: RMB641 million), respectively, mainly as a result of the higher/lower interest expense on floating rate borrowings. The 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 at December 31, 2019 and 2018. (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 hedging 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 at December 31, 2019, the fair values of the outstanding futures contracts amounting to RMB3 million (December 31, 2018: RMB16 million) and RMB1 million (December 31, 2018: RMB2 million) were recognized in financial assets and financial liabilities at fair value through profit or loss, respectively. As at December 31, 2019, the Company did not hold any option contracts (December 31, 2018: the Company did not hold any option contracts). As at December 31, 2019, if the commodity futures prices had increased/decreased by 3% (December 31, 2018 : 3%) and all other variables held constant, the profit for the year would have changed by the amounts shown below: 2018 2019 Primary aluminum Decrease/increase Decrease/increase Copper Increase/decrease Increase/decrease Zinc Decrease/increase Decrease/increase Coal Decrease/increase RMB2.7 million 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 excluding individually assessed and impaired receivables, 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. The Group has performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses. 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 2019. Maximum exposure and year-end staging as at December 31, 2018 and 2019 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 at December 31, 2018 and 2019. The amounts presented are carrying amounts for financial assets and the exposure to credit risk for the financial guarantee contracts. Year ended December 31, 2018 Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables* — — — 5,209,535 5,209,535 Financial assets in other current assets 1,098,455 3,655,638 121,432 — 4,875,525 Restricted cash 2,165,288 — — — 2,165,288 Notes receivable 2,894,482 — — — 2,894,482 Cash and cash equivalents 19,130,835 — — — 19,130,835 Financial assets in other non-current assets 204,718 — — — 204,718 Financial guarantees -not yet past due 12,450 — — — 12,450 Total 25,506,228 3,655,638 121,432 5,209,535 34,492,833 Year ended December 31, 2019 Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables* — — — 4,559,112 4,559,112 Financial assets in other current assets 1,632,766 3,970,620 120,538 — 5,723,924 Restricted cash 1,305,781 — — — 1,305,781 Notes receivable 2,834,011 — — — 2,834,011 Cash and cash equivalents 7,759,190 — — — 7,759,190 Financial assets in other non-current assets 128,673 — — — 128,673 Financial guarantees-not yet past due 5,772 — — — 5,772 Total 13,666,193 3,970,620 120,538 4,559,112 22,316,463 * For trade receivables to which the Group applies the simplified approach for impairment, information based on the provision matrix is disclosed in Notes 13 to the consolidated financial statements. The carrying amounts of short-term investments and these receivables included in Notes 9, 11, 13, and 14 represent the Group’s maximum exposure to credit risk in relation to its financial assets. The Group also provided financial guarantees to certain subsidiaries and a joint venture. The guarantees to the joint venture mentioned in Note 35 represented the Group’s maximum exposure to credit risk in relation to its guarantees to the joint venture. For the year ended December 31, 2019, revenues of approximately RMB40,567 million (2017: RMB39,759 million, 2018: RMB32,852 million) were derived from entities directly or indirectly owned or controlled by the PRC government including Chinalco. There were no other individual customers from whom the Group has derived revenue of more than 10% of the Group’s revenue during the years ended December 31, 2017, 2018 and 2019. Thus, 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, 2019 and 2018. (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. As at December 31,2019, the Group had total banking facilities of approximately RMB167,431 million of which the amounts totalling RMB49,347 million have been utilized as at December 31, 2019. Banking facilities of approximately RMB108,360 million will be subject to renewal during the next 12 months. The directors of the Company are confident that such banking facilities can be renewed upon expiration based on their past experience and good credit standing. In addition, as at December 31, 2019, the Group had no credit facilities through its futures agent at the LME (December 31, 2018: USD12 million (equivalent to RMB82 million), of which USD1 million (equivalent to RMB7 million) has been utilized. The futures agent has the right to adjust the related credit facilities.) Management also monitors rolling forecasts of the Group’s liquidity reserve on the basis of the expected cash flows. The table below analyzes the maturity profile of the Group’s financial liabilities as at 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 at December 31, 2018 Finance lease payables, including current portion 2,518,653 1,161,490 707,716 13,238 4,401,097 Long-term bank and other loans, including current portion 3,384,400 7,377,956 16,593,587 18,784,797 46,140,740 Medium-term notes and bonds, including current portion 400,000 — 9,785,840 — 10,185,840 Short-term bonds 500,000 — — — 500,000 Gold leasing arrangement 1,607,905 — — — 1,607,905 Short-term bank and other loans 39,348,100 — — — 39,348,100 Interest payables for borrowings 4,848,968 2,602,751 4,197,364 898,786 12,547,869 Financial liabilities at fair value through profit or loss 1,766 — — — 1,766 Financial liabilities included in other payables and accrued liabilities, excluding accrued interest 8,890,176 — — — 8,890,176 Financial liabilities included in other non-current liabilities (Note) — 108,896 333,354 420,258 862,508 Trade and notes payables 14,009,264 — — — 14,009,264 75,509,232 11,251,093 31,617,861 20,117,079 138,495,265 Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total As at December 31, 2019 Lease liabilities, 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 loans and 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 in other payables and accrued liabilities, excluding accrued interest 10,288,657 — — — 10,288,657 Financial liabilities included in other non-current liabilities (Note) — 176,232 182,006 857,647 1,215,885 Trade and notes payables 12,584,755 — — — 12,584,755 70,359,788 18,383,640 24,394,907 31,024,228 144,162,563 Note : As disclosed in Note 21, as at December 31, 2019, the carrying value of financial liabilities included in other non-current liabilities was RMB1,153 million (December 31, 2018: RMB841 million). 36.2 Financial instruments (a) Financial instruments by category The carrying amounts of each of the categories of financial instruments of the Group as at the end of the reporting period are as follows: Financial assets December 31, 2018 Financial assets at fair value Equity through profit or investments loss designated at Designated as fair value such upon Financial through other initial Held for assets at comprehensive recognition trading amortized cost income Total Current Trade and notes receivables — — 8,104,017 — 8,104,017 Financial assets at fair value through profit or loss — 16,141 — — 16,141 Restricted cash and time deposits — — 2,165, 288 2,165, 288 Cash and cash equivalents — — 19,130,835 — 19,130,835 Financial assets included in other current assets — — 4,875,530 — 4,875,530 Subtotal — 16,141 34,275,670 — 34,291,811 Non-current Equity investments designated at fair value through other comprehensive income — — — 1,729,825 1,729,825 Other non-current assets — — 204,718 — 204,718 Subtotal — — 204,718 1,729,825 1,934,543 Total — 16,141 34,480,388 1,729,825 36,226,354 Financial liabilities December 31, 2018 Financial liabilities at fair value through profit or loss Designated as such upon Financial initial Held for liabilities at recognition trading amortized cost Total Current Financial liabilities at fair value through profit or loss — 1,766 — 1,766 Interest-bearing loans and borrowings — — 47,565,490 47,565,490 Financial liabilities included in other payables and accrued liabilities (Note 22) — — 9,286,462 9,286,462 Trade and notes payables — — 14,009,264 14,009,264 Subtotal — 1,766 70,861,216 70,862,982 Non-current Financial liabilities included in other non-current liabilities (Note 21) — — 841,059 841,059 Interest-bearing loans and borrowings — — 54,207,386 54,207,386 Subtotal — — 55,048,445 55,048,445 Total — 1,766 125,909,661 125,911,427 Financial assets December 31, 2019 Financial assets at fair Equity Debt value through profit or investments instruments loss designated at at fair value Designated as fair value through such upon Financial through other other initial Held for assets at comprehensive comprehensive recognition trading amortized cost income income Total Current Trade receivables — — 4,559,112 — — 4,559,112 Notes receivable — — — — 2,834,011 2,834,011 Financial assets at fair value through profit or loss* — 3,503,175 — — — 3,503,175 Restricted cash and time deposits — — 1,305,781 — — 1,305,781 Cash and cash equivalents — — 7,759,190 — — 7,759,190 Financial assets included in other current assets — — 5,723,924 — — 5,723,924 Subtotal — 3,503,175 19,348,007 — 2,834,011 25,685,193 Non-current Equity investments designated at fair value through other comprehensive income — — — 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 19,476,680 2,239,251 2,834,011 28,053,117 * Financial assets measured at fair value through profit or loss are mainly wealth management products, denominated in RMB, with expected rates of return depending on the interest rates and yield curves observable at commonly quoted intervals. The fair value approximates to the carrying amount of the financial assets measured at fair value through profit or loss. Financial liabilities December 31, 2019 Financial liabilities at fair value through profit or loss Designated as such upon Financial initial Held for liabilities at recognition 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 Financial liabilities included in other payables and accrued liabilities (Note 22) — — 10,782,998 10,782,998 Trade and notes payables — — 12,584,755 12,584,755 Subtotal — 805 65,654,357 65,655,162 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 — 805 126,051,407 126,052,212 (b) Fair value and fair value hierarchy Fair value The carrying amounts and fair values of the Group’s financial instruments, 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 11) 204,718 128,673 182,132 111,935 204,718 128,673 182,132 111,935 Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial liabilities Financial liabilities included in other non-current liabilities (Note 21) 841,059 1,153,487 816,529 1,146,893 Long-term interest-bearing loans and borrowings, excluding lease liability (Note 18) 54,207,386 52,232,955 53,207,052 50,952,676 55,048,445 53,386,442 54,023,581 52,099,569 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 at December 31, 2019 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 at December 31, 2018 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 16,141 — — 16,141 Equity investments designated at fair value through other comprehensive income: Listed equity investments 6,441 — — 6,441 Other unlisted investment — — 1,723,384 1,723,384 22,582 — 1,723,384 1,745,966 As at 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 assets at fair value through profit or loss: Futures contracts 3,175 — — 3,175 Financial product — 3,500,000 — 3,500,000 Debt instruments at fair value through other comprehensive income - notes receivable — 2,834,011 — 2,834,011 Equity investments designated at fair value through other comprehensive income: Listed equity investments 8,853 — — 8,853 Other unlisted investment — — 2,230,398 2,230,398 12,028 6,334,011 2,230,398 8,576,437 Liabilities measured at fair value As at December 31, 2018 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 1,766 — — 1,766 1,766 — — 1,766 As at 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 at December 31, 2018 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 — 182,132 — 182,132 As at 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 at December 31, 2018 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 — 816,529 — 816,529 Long-term interest-bearing loans and borrowings — 53,207,052 — 53,207,052 — 54,023,581 — 54,023,581 As at 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 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, 2019, 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 (2018: Nil). Below is a summary of significant unobservable inputs to the valuation of financial instruments as at December 31, 2019 and 2018: Significant Valuation Technique unobservable input Range Equity investments in Size Industry Investment Fund December 31, 2019 Net Assets Method Net Assets 5,000,000 December 31, 2018 Net Assets Method Net Assets 5,000,000 Chinalco Innovative December 31, 2019 Net Assets Method Net Assets 36.3 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 at December 31, 2018 and 2019 is as follows: December 31, December 31, Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) 131,054,499 130,170,395 Less: Restricted cash, time deposits and cash and cash equivalents (21,296,123) (9,064,971) Net debt 109,758,376 121,105,424 Total equity 67,669,619 70,725,060 Add: net debt 109,758,376 121,105,424 Less: non-controlling interests (15,254,312) (16,065,427) Total capital attributable to owners of the parent 162,173,683 175,765,057 Gearing ratio 68 % 69 % |
PARTLY-OWNED SUBSIDIARIES WITH
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2019 | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | 37. PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS Other than the senior perpetual securities issued by a subsidiary of the Group, which is disclosed in Note 40, details of the Group’s subsidiaries that have material non-controlling interests are set out below: Percentage of equity interest held by non-controlling interests Ningxia Energy 29.18 % 29.18 % Shanxi Zhongrun 60.00 % 56.61 % Guizhou Huaren 60.00 % 60.00 % Profit for the year allocated to non-controlling interests Ningxia Energy 214,479 240,504 Shanxi Zhongrun 291,009 69,701 Guizhou Huaren 20,783 198,016 Dividends distributed to non-controlling interests Ningxia Energy 351,979 76,469 Shanxi Zhongrun 200,000 — Guizhou Huaren — — Accumulated balances of non-controlling interests at the Year ended Ningxia Energy 4,757,014 4,978,089 Shanxi Zhongrun 782,176 996,686 Guizhou Huaren 1,028,426 The following tables illustrate the summarized financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: 2018 Ningxia Energy Revenue 6,714,040 Total expenses 6,555,933 Profit for the year 158,107 Total comprehensive income for the year 158,107 Current assets 5,036,413 Non-current assets 32,677,977 Current liabilities 8,723,922 Non-current liabilities 18,367,979 Net cash flows from operating activities 2,755,612 Net cash flows used in investing activities (1,616,513) Net cash flows from financing activities (991,998) Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 147,101 2019 Ningxia Energy Revenue 6,695,724 Total expenses 6,314,098 Profit for the year 381,626 Total comprehensive income for the year 381,626 Current assets 5,081,743 Non-current assets 32,133,495 Current liabilities 8,688,475 Non-current liabilities 17,559,995 Net cash flows from operating activities 3,274,683 Net cash flows used in investing activities (939,054) Net cash flows from financing activities (2,611,597) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (275,968) 2018 Shanxi Zhongrun Revenue 645,413 Total expenses 644,596 Profit for the year 817 Total comprehensive income for the year 817 Current assets 605,140 Non-current assets 3,421,608 Current liabilities 790,819 Non-current liabilities 2,258,089 Net cash flows from operating activities (19,718) Net cash flows used in investing activities (781,869) Net cash flows from/financing activities (1,335,579) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (2,137,166) 2019 Shanxi Zhongrun Revenue 2,204,777 Total expenses 2,081,652 Profit for the year 123,125 Total comprehensive income for the year 123,125 Current assets 783,726 Non-current assets 4,010,818 Current liabilities 1,084,890 Non-current liabilities 2,093,735 Net cash flows from operating activities 234,014 Net cash flows used in investing activities (402,636) Net cash flows from financing activities 307,452 Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 138,830 2018 Guizhou Huaren Revenue 4,282,882 Total expenses 4,248,243 Profit for the year 34,639 Total comprehensive income for the year 34,639 Current assets 1,169,453 Non-current assets 3,038,875 Current liabilities 1,381,541 Non-current liabilities 1,458,995 Net cash flows from operating activities 134,781 Net cash flows used in investing activities (510,243) Net cash flows from/financing activities (115,222) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (490,684) Guizhou 2019 Huaren Revenue 5,982,665 Total expenses 5,677,075 Profit for the year 305,590 Total comprehensive income for the year 305,590 Current assets 1,034,442 Non-current assets 2,650,822 Current liabilities 1,164,346 Non-current liabilities 1,006,360 Net cash flows from operating activities 565,027 Net cash flows used in investing activities (91,319) Net cash flows from financing activities (354,187) Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 119,521 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 38. BUSINESS COMBINATION (a) Acquisition of 100% equity interest in Qingdao Light Metal On December 28, 2017, Chalco Shandong, a subsidiary of the Company, entered into an equity transfer agreement with Chinalco, pursuant to which Chalco Shandong acquired 100% equity interest of Qingdao Light Metal from Chinalco. The consideration for the acquisition was RMB162 million which was determined based on the appraisal value of the 100% equity interest in Qingdao Light Metal. The Company has paid all consideration as of December 31, 2017. The transaction date was December 29, 2017 which was the date that the Group obtained control of Qingdao Light Metal. Before and after the acquisition, both Qingdao Light Metal and the Company were controlled by Chinalco, and the control was not temporary. Thus, the acquisition of 100% equity interest in Qingdao Light Metal is considered to be a business combination under common control. The carrying amounts of the assets and liabilities of Qingdao Light Metal as at the transaction date and the comparative financial figures were as follows: December 31, December 29, Assets Investment properties 10,742 10,425 Property, plant and equipment 290,579 278,309 Land use rights 20,722 20,195 Inventories 29,446 49,489 Other current assets 2,934 3,978 Trade and notes receivables 29,748 98,957 Cash and cash equivalents 5,688 10,924 Liabilities Trade and notes payables 64,900 97,681 Other payables and accrued expenses 10,641 66,042 Interest-bearing loans and borrowings 167,000 167,000 Net assets 147,318 141,554 Other equity instruments 138,670 138,670 8,648 2,884 Difference recognized in equity 158,848 Total purchase consideration 161,732 (b) Acquisition of Shanxi Aluminum Sewage Treatment Plant On December 28, 2017, Shanxi New Material, a subsidiary of the Company, entered into an assets transfer agreement with Chalco Shanxi Aluminum, a subsidiary of Chinalco, pursuant to which, Shanxi New Material acquired Shanxi Aluminum Sewage Treatment Plant at a total consideration of RMB50 million. The consideration was determined based on the appraisal report issued by an independent qualified valuer. In the opinion of directors of the Company, the sewage treatment plant constitutes a business. Before and after the acquisition, both entities were controlled by Chinalco, and the control was not temporary. Thus, the acquisition is considered to be a business combination under common control. The acquisition date was December 28, 2017, which is determined by the date of transfer of the assets. The carrying amount of the assets and liabilities of Shanxi Aluminum Sewage Treatment Plant as at the transaction date and the comparative financial figures were as follows: December 31, December 28, Assets Property, plant and equipment 52,001 48,995 Liabilities Other payables and accrued expenses — — Net assets 52,001 48,995 Difference recognized in equity — 1,063 Total purchase consideration 50,058 The acquisition of Shanxi Aluminum Sewage Treatment Plant has no impact on the Group’s cash and cash equivalents. (c) Acquisition of Yinxing Power In April 2015, Ningxia Energy and Zhejiang Power Group Co., Ltd.* (“Zhejiang Power”) (浙江省能源集團有限公司) jointly established Ningxia Yinxing Power Co., Ltd.* (“Yinxing Power”) (寧夏銀星發電有限責任公司). The registered capital of Yinxing Power is RMB800 million, of which Ningxia Energy and Zhejiang Power contributed 51% and 49%, respectively. Ningxia Energy can appoint four out of the seven directors of the board of directors. According to the articles of association of Yinxing Power, the resolutions pertaining to significant relevant activities at both the shareholders’ and board of directors meetings require more than two-thirds of the votes for passing. Accordingly, the directors of the Company considered that Ningxia Energy and Zhejiang Power have joint control over Yinxing Power, which was accounted for as a joint venture. In August 2017, to minimize coal procurement costs and to secure long-term coal supply to Yinxing Power, Ningxia Energy and Zhejiang Power entered into an acting-in-concert agreement which was effective on August 31, 2017. According to the acting-in-concert agreement, Zhejiang Power will exercise the shareholders vote in concert with the Group. Accordingly, the directors of the Company consider that Ningxia Energy have control over Yinxing Power and consolidated Yinxing Power as a subsidiary since August 31, 2017. The fair value of identifiable assets and liabilities of Yinxing Power at the acquisition date are as follows: August 31, 2017 Fair value Assets Property, plant and equipment 3,594,970 Land use rights 31,833 Intangible assets 188 Other current assets 312,840 Inventories 35,349 Trade and notes receivables 162,093 Cash and cash equivalents 255,152 Liabilities Deferred tax liabilities (40,706) Interest-bearing loans and borrowings (2,514,800) Other payables and accrued expenses (186,782) Trade and notes payables (800,438) Net assets 849,699 Non-controlling interests 416,353 Net assets acquired 433,346 Goodwill — Satisfied by cash — Details of the 51% equity interest held by the Group before the acquisition of Yinxing Power and the profit from the investment are as follows: August 31, 2017 Initial investment cost 316,200 Investment income recognized under the equity method (494) The book value of the investment in 51% equity of Yinxing Power on the merger date 315,706 The fair value of the investment in 51% equity of Yinxing Power on the merger date (Note) 433,346 Gain on previously held equity interest remeasured at acquisition-date fair value 117,640 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 Yinxing Power is as follows: RMB’000 Cash consideration — Cash and bank balances acquired 255,152 Net inflow of cash and cash equivalents included in cash flows from investing activities 255,152 The operating results and cash flows of Yinxing Power since the merger date to the end of the year are as follows: RMB’000 Revenue 578,117 Profit for the period 96,756 Net cash flows 36,024 * 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. (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 Intangible assets 137 Land use rights 109,320 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 acquisition date to December 31, 2018 are as follows: RMB’000 Revenue 4,282,882 Profit for the period 34,639 Net cash out 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 out flows (2,137,166) * The English names represent the best effort made by management of the Group in translating their Chinese names as the companies do not have any official English names. (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 outflow 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 out flows (434) * The English names represent the best effort made by management of the Group in translating their Chinese names as the companies do not have any official English names. (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 at the transaction date and the comparative financial figures were as follows: December 31, August 31, 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) Acquisition of Pingguo Aluminum Carbon Plant 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 at the transaction date and the comparative financial figures were as follows: December 31, August 30, 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) Acquisition of Chibi Great Wall Carbon 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 at 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 at the transaction date and the comparative financial figures were as follows: December 31, August 30, 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) Acquisition of Longhua Logistics 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 at the transaction date and the comparative financial figures were as follows: December 31, September 17, 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 (k) Acquisition of Suzhou Zhongcai 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 at the acquisition date and the comparative financial figures were as follows: December 31, June 1, 2018 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 * The English names represent the best effort made by the management of the Group in translating their Chinese names as the companies do not have any official English names . |
DISPOSAL OF BUSINESSES
DISPOSAL OF BUSINESSES | 12 Months Ended |
Dec. 31, 2019 | |
DISPOSAL OF BUSINESSES | |
DISPOSAL OF BUSINESSES | 39. DISPOSAL OF BUSINESSES (a) Disposal of Shandong Engineering On October 31, 2017, the Company and CHALIECO entered into an equity transfer agreement, pursuant to which the Company agreed to sell and CHALIECO agreed to acquire 60% equity interest in Shandong Engineering at a consideration of RMB360 million. The consideration was determined based on the appraised value of the 60% equity interest in Shandong Engineering. Full consideration has been received by the Group in November 2017. The directors of the Company are of the opinion that the Group lost control over Shandong Engineering and accounted for it as an associate accordingly. As of the date of disposal, the carrying amount of Shandong Engineering was RMB350 million, and the Group recognized gain of disposal of subsidiary of RMB153 million for 60% equity interests disposed of. The Group re-measured the remaining 40% equity interest of Shandong Engineering to a fair value of RMB240 million and recognized the fair value gain of RMB102 million accordingly. In addition, unrealized profit arisen from construction services provided by Shandong Engineering previously eliminated upon consolidation amounting to RMB59 million was reversed and recognized in other gains. The details of the net assets disposed of are as follows: Date of disposal Net assets disposed of: Property, plant and equipment 109,103 Intangible assets 428 Deferred tax assets 3,106 Inventories 167,499 Trade receivables and notes receivable 1,067,636 Other current assets 23,136 Cash and cash equivalents 123,530 Other non-current liabilities (4,637) Other payables and accrued liabilities (282,232) Trade and notes payables (727,622) Interest-bearing loans and borrowings (130,000) Net assets 349,947 Non-controlling interests 3,961 Total net assets 345,986 Gain on disposal of Shandong Engineering 254,659 The fair value of the remaining equity interest in Shandong Engineering 240,258 Consideration 360,387 Satisfied by: Cash 387 Notes receivable 360,000 An analysis of the cash flow of cash and cash equivalents in respect of the Disposal of Shandong Engineering is as follows: Date of disposal Cash consideration received 387 Cash and bank balances disposed of (123,530) Net outflows of cash and cash equivalents in respect of disposal of Shandong Engineering (123,143) (b) Deemed disposal of Shanxi Zhongrun The Company previously had a 50% equity interest in Shanxi China Huarun Co., Ltd.* (“Shanxi Zhongrun”) ( 山西中鋁華潤有限公司 ). According to the then acting-in-concert agreement entered into by the Company and the other shareholders of Shanxi Zhongrun, Huarun (Coal) Group Co., Ltd. * (“Huarun (Coal) Group”) ( 華潤(煤業)集團有限公司 ), Huarun (Coal) Group agreed to confer its voting rights in the shareholders’ meeting of Shanxi Zhongrun to the Company. Accordingly, the directors of the Company considered that the Company had control over Shanxi Zhongrun and included Shanxi Zhongrun in the consolidation scope. On February 15, 2017, the Company entered into a capital injection and enlargement agreement on Shanxi Zhongrun with Huarun (Coal) Group, Shanxi Xishan Coal and Electricity Power Co., Ltd.* (“Xishan Coal Electricity”) ( 西山煤電 ), and Jin Energy Power Group Co., Ltd.* (“Jin Energy Power”) ( 晉能電力 ). Pursuant to the agreement, the Company, Xishan Coal Electricity and Jin Energy Power had each subscribed RMB100 million, respectively. After the capital contribution, the Company’s equity interest in Shanxi Zhongrun decreased to 40% while each of the other three shareholders hold a 20% equity interest, respectively, and the acting-in-concert agreement between the Company and Huarun (Coal) Group also ceased to be effective since then. The directors of the Company are of the opinion that the Group lost control over Shanxi Zhongrun and accounted for it as an associate accordingly. As of the date of deemed disposal, the Company re-measured the 40% equity of Shanxi Zhongrun to a fair value of RMB100 million and recognized the fair value gain of RMB4 million accordingly. (c) Disposal of Zibo Trading In November 2017, Chalco Trading, a subsidiary of the Company, agreed to transfer 50% equity interest in Zibo International Trading Co. Ltd. * (”Zibo Trading”) (“ 淄博國貿 ” ) to a third party. The directors of the Company are of the opinion that the Group lost control over Zibo Trading and accounted for it as a joint venture accordingly. As of the date of disposal, the Group recognized loss of disposal of subsidiary of RMB2 million for 50% equity interest disposed of. The Group re-measured the 50% equity of Zibo Trading to a fair value of RMB12 million and recognized the fair value loss of RMB2 million accordingly. (d) Bankruptcy liquidation of Longmen Aluminum In September 2017, Shanxi Hejin People’s Court accepted the liquidation petition filed by the Group’s subsidiary, Shanxi Longmen Aluminum Co., Ltd. (“Longmen Aluminum”) ( 山西龍門鋁業有限公司 ). Upon the liquidation, administrators took control over Longmen Aluminum, the directors of the Company considered the Company lost control over Longmen Aluminum and therefore, ceased to consolidate Longmen Aluminum since then. The Group recognized a loss of RMB26 million for lost control over Longmen Aluminum. (e) Bankruptcy liquidation of Beijing Yike In September 2017, Beijing Shijingshan People’s Court accepted the liquidation petition filed by the Group’s subsidiary, Beijing Yike. Upon the liquidation, administrators took control over Beijing Yike, and therefore, the directors of the Company considered the Group lost control over Beijing Yike and deconsolidated Beijing Yike since then. The Group recognized a gain of RMB38 million upon the deconsolidation of Beijing Yike. (f) Disposal of Zhengzhou Chalco Longyu Mining Co., Ltd. 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) Bankruptcy liquidation of Shanxi Huatai Carbon Co., Ltd. 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) Bankruptcy liquidation of Hedong Carbon Co., Ltd. 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. (i) Disposal of 100% equity of China Aluminum Nanhai Alloy 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. (j) Disposal of 40% equity interest of Inner Mongolia Fengrong and disposal of 60% equity interest of Ningxia Fenghao 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. (k) Deregistration of Shanghai Kailin 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. (l) Disposal of Ruzhou Jinhua 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. * The English names represent the best effort made by management of the Group translating the Chinese names of the Companies as the companies do not have any official English names. |
OTHER EQUITY INSTRUMENTS
OTHER EQUITY INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER EQUITY INSTRUMENTS | |
OTHER EQUITY INSTRUMENTS | 40. OTHER EQUITY INSTRUMENTS On October 22, 2013, a subsidiary of the Company, Chalco Hong Kong Investment Company Limited (“Chalco Hong Kong Investment”, or the “Issuer“) issued USD350 million senior perpetual securities at an initial distribution rate of 6.625% (the “2013 Senior Perpetual Securities“). The proceeds from the issuance of the 2013 Senior Perpetual Securities after the issuance costs amounted to USD347 million (equivalent to RMB2,123 million). The proceeds were on-lent to the Company and any of its subsidiaries for general corporate use. Coupon payments at 6.625% per annum on the 2013 Senior Perpetual Securities have been made semi-annually in arrears from October 29, 2013 and may be deferred at the discretion of the Group. The 2013 Senior Perpetual Securities have no fixed maturity dates and are callable only at the Group’s option on or after October 29, 2018 at their principal amounts together with any accrued, unpaid or deferred coupon distribution payments. After October 29, 2018, the coupon distribution rate will be reset to a percentage per annum equal to the sum of (a) the initial spread of 5.312 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 Company and 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 31, 2018, the Group redeemed the senior perpetual security, and paid $373 million in principal and interest, approximately RMB2,592 million. 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 at 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 are callable only at the Group’s option on October 29, 2020 or any coupon distribution date after October 29, 2020 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 300 Bps every five years after October 29, 2020. 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 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 at 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 19 November 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. Pursuant to the terms and conditions of the 2013 Senior Perpetual Securities, the 2016 Senior Perpetual Securities, the 2018 Perpetual Medium-term Notes and the 2019 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, 2019 | |
CONTINGENT LIABILITIES | |
CONTINGENT LIABILITIES | 41. CONTINGENT LIABILITIES The Group was sued in the second quarter of 2019 against the project construction, financing arrangement and others, collectively aggregating to RMB591 million, which mainly arose from contract variation orders without merits and disagreed by the Group. As an administrative process, the local courts held to freeze the Group’s bank accounts or other equivalent assets amounting to RMB214 million. As at December 31, 2019 and as at the date of approval of these financial statements, the local courts have already frozen several bank accounts of the Group aggregating to RMB61 million and a real estate of the Group of a net book value amounting to RMB46 million. Currently the lawsuits are in progress and the outcomes are unknown. The directors, based on the advice from the Group’s legal counsels, believe that the Group has valid defence against all the allegations and accordingly, have not provided for any claim arising from the litigations, other than the related legal and other costs. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS | |
COMMITMENTS | 42. COMMITMENTS (a) Capital commitments on property, plant and equipment December 31, December 31, Contracted, but not provided for 3,942,933 4,041,857 (b) Operating lease commitments as at 31, December 2018 The future aggregate minimum lease payments as at December 31, 2018 pursuant to non-cancellable lease agreements entered into by the Group are summarized as follows: December 31, Within one year 541,541 In the second to fifth years, inclusive 1,880,058 After five years 10,567,925 12,989,524 (c) Other capital commitments As at December 31, 2019, the commitments to make capital contributions to the Group’s joint ventures and associates were as follows: December 31, December 31, Associates 82,800 33,800 Joint ventures 460,000 410,000 542,800 443,800 |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2019 | |
EVENTS AFTER THE REPORTING PERIOD | |
EVENTS AFTER THE REPORTING PERIOD | 43. EVENTS AFTER THE REPORTING PERIOD (a) On January 13, 2020, the Group completed an issuance of short-term bonds with a total face value of RMB1.5 billion at par value of RMB100.00 per unit which will mature in April 2020 for working capital needs and repayment of bank borrowings . The fixed annual coupon interest rate of these bonds is 2.10%. (b) On January 15, 2020, 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 April 2020 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.20%. (c) On February 13, 2020, the Group completed an issuance of short-term bonds with a total face value of RMB1 billion at par value of RMB100.00 per unit which will mature in May 2020 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.10%. (d) On February 20, 2020, the Group completed an issuance of short-term bonds with a total face value of RMB1 billion at par value of RMB100.00 per unit which will mature in November 2020 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.50%. (e) On February 21, 2020, the Group completed an issuance of short-term bonds with a total face value of RMB1 billion at par value of RMB100.00 per unit which will mature in May 2020 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.20%. (f) On March 5, 2020, the Group completed an issuance of corporate bonds with a total face value of RMB0.5 billion at par value of RMB100.00 per unit which will mature in March 2025 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 3.30%. (g) On March 13, 2020, the Group completed an issuance of short-term bonds with a total face value of RMB1.8 billion at par value of RMB100.00 per unit which will mature in September 2020 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.20%. (h) On March 20, 2020, the Group completed an issuance of corporate bonds with a total face value of RMB1 billion at par value of RMB100.00 per unit which will mature in March 2023 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 3.05%. (i) On March 26, 2020, the Group completed an issuance of medium-term notes with a total face value of RMB0.9 billion at par value of RMB100.00 per unit which will mature in March 2023 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 2.93%. (j) The outbreak of the novel coronavirus (COVID-19)in the PRC since January 2020,the prevention and control of COVID-19 has continued. The Group has taken all possible effective measures to limit and keep the impact in control. The Group will follow and strengthen its support to the government’s requirements on COVID-19 prevention and control work.COVID-19 has significant impacts on production, consumption and investment. It is expected that the aluminum industry will face greater challenges as well as greater opportunities. The Group will continue to pay close attention to and evaluate the developments of COVID-19 and market changes, and actively respond to the possible impact on the Group’s financial situation and operating results. Because of the significant uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. |
COMPARATIVE AMOUNTS
COMPARATIVE AMOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
COMPARATIVE AMOUNTS | |
COMPARATIVE AMOUNTS | 44. COMPARATIVE AMOUNTS Certain comparative amounts have been restated as a result of the business combinations under common control as disclosed in note 38. The comparative consolidated statements of cash flows for the years ended December 31, 2017 have been revised to reclassify the cash outflows for the purchase of non-controlling interests and business combination under common control from investing activities to financing activities in accordance with IAS 7 Statement of Cash Flows. This change did not impact the consolidated statement of financial position or consolidated statement of profit or loss and other comprehensive income for the prior periods. |
APPROVAL OF THE FINANCIAL STATE
APPROVAL OF THE FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
APPROVAL OF THE FINANCIAL STATEMENTS | |
APPROVAL OF THE FINANCIAL STATEMENTS | 45. APPROVAL OF THE FINANCIAL STATEMENTS The financial statements were approved and authorized for issue by the board of directors on April 22, 2020. |
BASIS OF PREPARATION AND SIGN_2
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of preparation | 2.1 Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs“) issued by the International Accounting Standards Board (the “IASB“) and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared on a historical cost basis, except for equity investments at fair value through other comprehensive income, financial assets and liabilities at fair value through profit or loss and debt instruments at fair value through other comprehensive income which have been measured at fair value. These financial statements are presented in thousands of Renminbi ("RMB") unless otherwise stated. Going concern As at December 31, 2019, the Group’s current liabilities exceeded its current assets by approximately RMB20,456 million (December 31, 2018 : RMB15,935 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 2020; · Unutilized banking facilities of approximately RMB118,084 million as at December 31, 2019, of which amounts totalling RMB108,360 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; 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, 2019. 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. Consolidation The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries for the year ended December 31, 2019. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: · Power over the investee (i.e, existing rights that give it the current ability to direct the relevant activities of the investee); · Exposure, or rights, to variable returns from its involvement with the investee; and · The ability to use its power over the investee to affect its returns. Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: · The contractual arrangement with the other vote holders of the investee; · Rights arising from other contractual arrangements; and · The Group’s voting rights and potential voting rights. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of financial position and consolidated statement of profit and loss and other comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income ("OCI") are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: · Derecognizes the assets (including goodwill) and liabilities of the subsidiary; · Derecognizes the carrying amount of any non-controlling interests; · Derecognizes the cumulative translation differences recorded in equity; · Recognizes the fair value of the consideration received; · Recognizes the fair value of any investment retained; · Recognizes any surplus or deficit in profit or loss; and · Reclassifies the parent’s share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or liabilities. (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 38. 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 at 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 at 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. (c) Subsidiaries A subsidiary is an entity, directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Group the current ability to direct the relevant activities of the investee). When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: (a) the contractual arrangement with the other vote holders of the investee; (b) rights arising from other contractual arrangements; and (c) the Group’s voting rights and potential voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Inter-company transactions, balances, income and expenses on transactions between group companies are eliminated. Profits and losses resulting from inter-company transactions that are recognized in assets are also eliminated. Amounts reported by subsidiaries have been adjusted where necessary in the consolidated financial statements to conform with the policies adopted by the Group. In the Company’s statement of financial position, as permitted under IFRS 1, the investments in subsidiaries acquired prior to January 1, 2008, being the date of transition to IFRS, are stated at deemed cost as required under the previously adopted accounting standards. Subsidiaries acquired after that date that are not classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are stated at cost less provision for impairment losses. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable. |
Changes in accounting policies and disclosures | 2.2 Changes in accounting policies and disclosures The Group has adopted the following new and revised IFRSs for the first time for the current year’s financial statements. Amendments to IFRS 9 Prepayment Features with Negative Compensation IFRS 16 Leases Amendments to IAS 19 Plan Amendment, Curtailment or Settlement Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures Amendments to IFRS 10 and IAS 28 (2011) Sale or Contribution of Assets between an Investors and its Associate or Joint Venture IFRIC Interpretation 23 Uncertainty over Income Tax Treatments Annual Improvements 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 Except for the amendments to IFRS 9 and IFRS 19 and Annual Improvements to IFRS 2015-2017 Cycle, which are not relevant to the preparation of the Group’s financial statements, the nature and the impact of the new and revised IFRSs are described below: (a) IFRS 16 Leases IFRS 16 replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC 15 Operating Leases-Incentives and SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model to recognize and measure right-of-use assets and lease liabilities, except for certain recognition exemptions. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have any financial impact on leases where the Group is the lessor. The Group has adopted IFRS 16 using the modified retrospective method of adoption with the date of initial application of January 1, 2019. Under this method, the standard has been applied retrospectively with the cumulative effect of initial adoption recognized as an adjustment to the opening balance of retained earnings at January 1, 2019, and the comparative information for 2018 was not restated and continues to be reported under IAS 17 and related interpretations. New definition of a lease Under IFRS 16, a contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed where the customer has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on or after January 1, 2019. As a lessee- Leases previously classified as operating leases Nature of the effect of adoption of IFRS 16 The Group has lease contracts for various items of property, machinery, vehicles and other equipment. As a lessee, the Group previously classified leases as either finance leases or operating leases based on the assessment of whether the lease transferred substantially all the rewards and risks of ownership of assets to the Group. Under IFRS 16, the Group applies a single approach to recognize and measure right-of-use assets and lease liabilities for all leases, except for two elective exemptions for leases of low-value assets (elected on a lease-by-lease basis) and leases with a lease term of 12 months or less (“short-term leases”) (elected by class of underlying asset). Instead of recognising rental expenses under operating leases on a straight-line basis over the lease term commencing from January 1, 2019, the Group recognizes depreciation (and impairment, if any) of the right-of-use assets and interest accrued on the outstanding lease liabilities (as finance costs). Impacts on transition Lease liabilities at January 1, 2019 were recognized based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at January 1, 2019 and included in interest-bearing loans and borrowings. The right-of-use assets were measured at the amount of the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the lease recognized in the consolidated statement of financial position immediately before January 1, 2019. All these assets were assessed for any impairment based on IAS 36 on that date. The Group elected to present the right-of-use assets separately in the statement of financial position. This includes the lease assets recognized previously under finance leases of RMB6,721 million that were reclassified from property, plant and equipment, land use right of RMB4,307 million that were disclosed separately in the statement of financial position, and prepaid rental of RMB20 million that were included in other non-current assets. The Group has used the following elective practical expedients when applying IFRS16 at January 1, 2019: · Applied the short-term leases exemptions to leases with a lease term that ends within 12 months from the date of initial application · Applying a single discount rate to a portfolio of leases with reasonably similar characteristics when measuring the lease liabilities at January 1, 2019 · Using hindsight in determining the lease term where the contract contains options to extend or terminate the lease · and excluding initial direct costs from the measurement of the right-of-use assets at the date of initial application The Group did not change the initial carrying amounts of recognized assets and liabilities at the date of initial application for leases previously classified as finance leases. Accordingly, the carrying amounts of the right-of- use assets and the lease liabilities at January 1, 2019 were the carrying amounts of the recognized assets and liabilities (i.e., finance lease payables) measured under IAS 17. The impact arising from the adoption of IFRS16 at January 1, 2019 is as follows: Increase/(decrease) RMB'000 Assets Increase in right-of-use assets 17,976,851 Decrease in property, plant and equipment (6,720,610) Decrease in land use rights (4,306,865) Decrease in other non-current assets (20,323) Increase in total assets 6,929,053 Liabilities Increase in Interest-bearing loans and borrowings 11,010,323 Decrease in finance lease payables (4,081,270) Increase in total liabilities 6,929,053 Decrease in retained earnings — Decrease in non-controlling interests — The lease liabilities as at January 1, 2019 reconciled to the operating lease commitments as at December 31, 2018 is as follows: Increase/(decrease) RMB'000 Operating lease commitments as at December 31, 2018 12,989,524 Less: Commitments relating to short-term leases, low-value assets leases and those leases with a remaining lease term ending on or before December 31, 2019 59,819 Undiscounted Operating lease commitments as at January 1, 2019 under IFRS 16 12,929,705 Weighted average incremental borrowing rate as at January 1, 2019 4.97 % Discounted operating lease commitments as at January 1, 2019 under IFRS 16 6,929,053 Add: Recognized Finance leases as at December 31, 2018 4,081,270 Lease liabilities as at January 1, 2019 11,010,323 (b) Amendments to IAS 28 Amendments to IAS 28 clarify that the scope exclusion of IFRS 9 only includes interests in an associate or joint venture to which the equity method is applied and does not include long-term interests that in substance form part of the net investment in the associate or joint venture, to which the equity method has not been applied. Therefore, an entity applies IFRS 9, rather than IAS 28, including the impairment requirements under IFRS 9, in accounting for such long-term interests. IAS 28 is then applied to the net investment, which includes the long-term interests, only in the context of recognising losses of an associate or joint venture and impairment of the net investment in the associate or joint venture. The Group assessed its business model for its long-term interests in associates and joint ventures upon adoption of the amendments on January 1, 2019 and concluded that the long-term interests in associates and joint ventures continue to be measured at amortized cost in accordance with IFRS 9. Accordingly, the amendments did not have any impact on financial position or performance of the Group. (c) IFRIC 23 addresses the accounting for income taxes (current and deferred) when tax treatments involve uncertainty that affects the application of IAS 12 (often referred to as “uncertain tax positions”). The interpretation does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The interpretation specifically addresses (i) whether an entity considers uncertain tax treatments separately; (ii) the assumptions an entity makes about the examination of tax treatments by taxation authorities; (iii) how an entity determines taxable profits or tax losses, tax bases, unused tax losses, unused tax credits and tax rates; and (iv) how an entity considers changes in facts and circumstances. Upon adoption of the interpretation, the Group assessed whether it has any uncertain tax positions arising from transactions during the year. Based on the Group’s assessment, the directors are of opinion that the eventual outcome of the uncertainty position shall not have a material adverse financial effect. (d) Amendments to IFRS 10 and IAS 28 (2011) address an inconsistency between the requirements in IFRS 10 and in IAS 28 (2011) in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require a full recognition of a gain or loss when the sale or contribution of assets between an investor and its associate or joint venture constitutes a business. For a transaction involving assets that do not constitute a business, a gain or loss resulting from the transaction is recognized in the investor’s profit or loss only to the extent of the unrelated investor’s interest in that associate or joint venture. The amendments are to be applied prospectively. The Group adopted the amendments on January 1, 2019, and assessed the sale or contribution of assets transaction with its associate or joint venture. The amendments did not have any significant impact on the Group’s financial statements. |
Issued but not yet effective International Financial Reporting Standards | 2.3 Issued but not yet effective International Financial Reporting Standards The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective, in these financial statements. Amendments to IFRS 3 Definition of a Business 1 Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform 1 IFRS 17 Insurance Contracts 2 Amendments to IAS 1 and IAS 8 Definition of Material 1 1 Effective for annual periods beginning on or after January 1, 2020 2 Effective for annual periods beginning on or after January 1, 2021 Further information about those IFRSs that are expected to be applicable to the Group is described below. Amendments to IAS 1 and IAS 8 provide a new definition of material. The new definition states that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments clarify that materiality will depend on the nature or magnitude of information. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. The Group expects to adopt the amendments prospectively from January 1, 2020. The amendments are not expected to have any significant impact on the Group’s financial statements. Amendments to IFRS 3 clarify and provide additional guidance on the definition of a business. The amendments clarify that for an integrated set of activities and assets to be considered a business, it must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. A business can exist without including all of the inputs and processes needed to create outputs. The amendments remove the assessment of whether market participants are capable of acquiring the business and continue to produce outputs. Instead, the focus is on whether acquired inputs and acquired substantive processes together significantly contribute to the ability to create outputs. The amendments have also narrowed the definition of outputs to focus on goods or services provided to customers, investment income or other income from ordinary activities. Furthermore, the amendments provide guidance to assess whether an acquired process is substantive and introduce an optional fair value concentration test to permit a simplified assessment of whether an acquired set of activities and assets is not a business. The Group expects to adopt the amendments prospectively from January 1, 2020. Since the amendments apply prospectively to transactions or other events that occur on or after the date of first application, the Group will not be affected by these amendments on the date of transition. Amendments to IFRS 9, IAS 39 and IFRS 7 address the effects of interbank offered rate reform on financial reporting. The amendments provide temporary reliefs which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark. In addition, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties. The amendments are effective for annual periods beginning on or after January 1, 2020. Early application is permitted. The amendments are not expected to have any significant impact on the Group’s financial statements. |
Investments in associates and joint ventures | 2.4 Investments in associates and joint ventures An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Group’s investments in associates and joint ventures are stated in the consolidated statement of financial position at the Group’s share of net assets under the equity method of accounting, less any impairment losses. Adjustments are made to bring into line any dissimilar accounting policies that may exist. The Group’s share of the post-acquisition results and other comprehensive income of associates and joint ventures is included in the consolidated statement of profit or loss and other comprehensive income. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, the Group recognizes its share of any changes, when applicable, in the consolidated statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s investments in the associates or joint ventures, except where unrealized losses provide evidence of an impairment of the assets transferred. Goodwill arising from the acquisition of associates or joint ventures is included as part of the Group’s investments in associates or joint ventures. After application of the equity method, the Group determine whether it is necessary to recognize an impairment loss on its investment in its associate and joint venture in the profit or loss. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value, then recognizes the loss in the profit or loss. If an investment in an associate becomes an investment in a joint venture or vice versa, the retained interest is not remeasured. Instead, the investment continues to be accounted for under the equity method. In all other cases, upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. When an investment in an associate or a joint venture is classified as held for sale, it is accounted for in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations . |
Segment reporting | 2.5 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. The chief operating decision-makers, who are responsible for allocating resources and assessing the performance of the operating segments, have been identified as the presidents of the Company that make strategic decisions. |
Related parties | 2.6 Related parties A party is considered to be related to the Group if: (a) the party is a person or a close member of that person’s family and that person: (i) has control or joint control over the Group; (ii) has a significant influence over the Group; or (iii) is a member of the key management personnel of the Group or of a parent of the Group; or (b) the party is an entity where any of the following conditions applies: (iv) the entity and the Group are members of the same group; (v) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity); (vi) the entity and the Group are joint ventures of the same third party; (vii) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; (viii) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group; (If the Group is itself a plan) and the sponsoring employers of the post-employment benefit plan; (ix) a person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); and (x) the entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the parent of the Group. (xi) the entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the parent of the Group. |
Fair value measurement | 2.7 Fair value measurement The Group measures its derivative financial instruments and equity investments at fair value at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. 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. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 — Based on quoted (unadjusted) prices in active markets for identical assets or liabilities Level 2 — Based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly Level 3 — Based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
Impairment of non-financial assets | 2.8 Impairment of non-financial assets Where an indication of impairment exists, or when annual impairment testing for an asset is required (other than inventories, deferred tax assets, non-current assets classified as held for sales and goodwill or intangible assets with indefinite useful life), the asset's recoverable amount is estimated. An asset's recoverable amount is the higher of the asset's or cash-generating unit's value in use and its fair value less costs of disposal, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the recoverable amount is determined for the cash-generating unit to which the asset belongs. An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is charged to profit or loss in the period in which it arises in those expense categories consistent with the function of the impaired asset. An assessment is made at the end of each reporting period as to whether there is an indication that previously recognized impairment losses may no longer exist or may have decreased. If such an indication exists, the recoverable amount is estimated. A previously recognized impairment loss of an asset other than goodwill is reversed only if there has been a change in the estimates used to determine the recoverable amount of that asset, but not to an amount higher than the carrying amount that would have been determined (net of any depreciation/amortization) had no impairment loss been recognized for the asset in prior years. A reversal of such an impairment loss is credited to profit or loss in the period in which it arises. |
Foreign currency translation | 2.9 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 currency and the Group’s 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 | 2.10 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 category of property, plant and equipment when completed and ready for use. |
Investment properties | 2.11 Investment properties Investment properties are interests in land and buildings (including the leasehold property held as a right-of-use asset (2018: leasehold property under an operating lease) 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. |
Non-current assets and disposal groups held for sale | 2.12 Non-current assets and disposal groups held for sale Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a sales transaction rather than through continuing use. For this to be the case, the asset or disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for the sale of such assets or disposal groups and its sale must be highly probable. All assets and liabilities of a subsidiary classified as a disposal group are reclassified as held for sale regardless of whether the Group retains a non-controlling interest in its former subsidiary after the sale. Non-current assets and disposal groups (other than financial assets) classified as held for sale are measured at the lower of their carrying amounts and fair values less costs to sell. Property, plant and equipment and intangible assets classified as held for sale are not depreciated or amortized. |
Intangible assets (other than goodwill) | 2.13 Intangible assets (other than goodwill) Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is the fair value at the date of acquisition. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are subsequently amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year end. (a) 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 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 Amortization of bauxite and other mining rights (except for coal mining rights) is provided on a straight-line basis according to the shorter of the expiration date of the mining certificate and the mineable period of natural resources. 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 in the Solid Mineral Resource/Reserve Classification of the PRC (GB/T17766‑1999) 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. (b) Computer software Acquired computer software licences 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 programmes are recognized as an expense as incurred. (c) Electrolytic aluminum production quota Electrolytic 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 according to expected production period. (d) 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 | 2.14 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 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. |
Leases | 2.15 Leases (applicable from January 1, 2019) The Group assesses at contract inception whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Group as a lessee The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. (a) Right-of-use assets are recognized at the commencement date of the lease (that is the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and any impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-us assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payment made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease terms and the estimated useful lives of the assets as follows: Buildings 2-20 years Machinery 2-10 years Land use rights 10-50 years If ownership of the leased asset transfers to the Group by the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. (b) Lease liabilities are recognized at the commencement date of the lease at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for termination of a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in lease payments (e.g., a change to future lease payments resulting from a change in an index or rate) or a change in assessment of an option to purchase the underlying asset. The Group’s lease liabilities are included in interest-bearing bank and other borrowings. (c) 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 payments on short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis over the lease term. Group as a lessor When the Group acts as a lessor, it classifies at lease inception (or when there is a lease modification) each of its leases as either an operating lease or a finance lease. Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. When a contract contains lease and non-lease components, the Group allocates the consideration in the contract to each component on a relative stand-alone selling price basis. Rental income is accounted for on a straight-line basis over the lease terms and is included in revenue in profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned. Leases that transfer substantially all the risks and rewards incidental to ownership of an underlying assets to the lessee, are accounted for as finance leases. At the commencement date, the cost of the leased asset is capitalized at the present value of the minimum lease payments and related payments (including the initial direct costs), and presented as a receivable at an amount equal to the net investment in the lease. The finance costs of such leases are charged to profit or loss so as to provide a constant periodic rate of charge over the lease terms. 2.16 Leases (applicable before January 1, 2019) Leases that transfer substantially all the rewards and risks of ownership of assets to the Group, other than legal title, are accounted for as finance leases. At the inception of a finance lease, the cost of the leased asset is capitalized at the present value of the minimum lease payments and recorded together with the obligation, excluding the interest element, to reflect the purchase and financing. Assets held under capitalized finance leases, including prepaid land lease payments under finance leases, are included in property, plant and equipment, and depreciated over the shorter of the lease terms and the estimated useful lives of the assets. The finance costs of such leases are charged to profit or loss so as to provide a constant periodic rate of charge over the lease terms. Assets acquired through hire purchase contracts of a financing nature are accounted for as finance leases, but are depreciated over their estimated useful lives. Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Where the Group is the lessor, assets leased by the Group under operating leases are included in non-current assets, and rentals receivable under the operating leases are credited to profit or loss on the straight-line basis over the lease terms. Where the Group is the lessee, rentals payable under operating leases net of any incentives received from the lessor are charged to profit or loss on the straight-line basis over the lease terms. Prepaid land lease payments under operating leases are initially stated at cost and subsequently recognized on the straight-line basis over the lease terms. |
Investments and other financial assets | 2.17 Investments and other financial assets IFRS 9 Financial Instruments replaced IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1, 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement, impairment and hedge accounting. The Group has recognized the transition adjustments against the applicable opening balances in equity at January 1, 2018. Therefore, the comparative information was not restated and continues to be reported under IAS 39. 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 marketplace. 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. Derecognition of financial assets 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 at December 31, 2019 was estimated based on a range of forecast economic conditions as at 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 two 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). 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 at the reporting date with the risk of a default occurring on the financial instrument as at 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 | 2.18 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 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 | 2.19 Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position when there is 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. |
Derivative financial instruments | 2.20 Derivative financial instruments Initial recognition and subsequent measurement The Group uses derivative financial instruments, such as futures and option contracts, to reduce its exposure to fluctuation in the price of primary aluminium and other products, to hedge its foreign currency risk and interest rate risk, respectively. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Any gains or losses arising from changes in fair value of derivatives are taken directly to profit or loss. |
Inventories | 2.21 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 labour and an appropriate proportion of all production overhead expenditure (based on the normal operating capacity). Borrowing costs are excluded. 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 | 2.22 Cash and cash equivalents For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise 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, less bank overdrafts which are repayable on demand and form an integral part of the Group’s cash management. For the purpose of the consolidated statement of financial position, cash and cash equivalents comprise cash on hand and at banks, including term deposits, and assets similar in nature to cash, which are not restricted as to use. |
Provisions | 2.23 Provisions A provision is recognized when a present obligation (legal or constructive) has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation. When the effect of discounting is material, the amount recognized for a provision is the present value at the end of the reporting period of the future expenditures expected to be required to settle the obligation. The increase in the discounted present value amount arising from the passage of time is included in finance costs in profit or loss. |
Government grants | 2.24 Government grants In 2018, the management of the Group performed an analysis on the nature of the Group's government grants. After reassessing the gross vs. net presentation policy, management considered that presenting government grants in the net method can provide reliable and more relevant information about the effects of transactions to the users of the financial statements. As such, the Company proposed a voluntary change in the accounting policy. Up to the year of 2017, the Group recognized and measured government grants according to the gross method: Asset-related government grants are recognized when the government document designates that the government grants are used for constructing or forming long-term assets. Asset-related government grants are recognized as deferred income and are amortized evenly in profit or loss over the useful lives of the related assets. Income-related government grants that are used to compensate subsequent related expenses or losses of the Group are recognized as deferred income and recorded in profit or loss when the related expenses or losses are incurred. When the grants are used to compensate expenses or losses that were already incurred, they are directly recognized in profit or loss for the current period. After the voluntary change in the accounting policy, the Group recognized government grants according to the net method. For asset related government grants, had the asset already existed upon receiving the government grant, the Group directly deducted the grant amount from the book value of the assets related to the government grant instead of recording the government grants as deferred income. For government grants related to income and expenses already incurred by the Group, which are specific to compensate certain cost and expenses, the Group would directly offset the grant amount against the related cost or expense. 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 recognising 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 recognising 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. |
Employee benefits | 2.25 Employee benefits Employee benefits mainly include salaries, bonuses, allowances and subsidies, pension insurance, social insurance and housing funds, labour 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 2019, the Group made monthly contributions at the rate of 17% (2018: 20%) of the qualified employees’ salaries. 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 organisations 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. |
Income tax | 2.26 Income tax Income tax comprises current and deferred tax. Income tax relating to items recognized outside profit or loss is recognized outside profit or loss, either in other comprehensive income or directly in equity. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period, taking into consideration interpretations and practices prevailing in the countries in which the Group operates. Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except: · when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward of unused tax credits and unused tax losses can be utilized, except: · when the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and · in respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. |
Perpetual securities | 2.27 Perpetual securities Perpetual securities are classified as equity if they are non-redeemable, or redeemable only at the issuer’s option, and any interest and distributions are discretionary. Interest and distributions on perpetual securities classified as equity are recognized as distributions within equity. The perpetual securities issued by the Company are recognized as other equity instruments, and the perpetual securities issued by a subsidiary of the Company are recognized as non-controlling interests. |
Revenue recognition | 2.28 Revenue recognition Revenue from contracts with customers The Group adopted IFRS 15 from January 1, 2018 using the modified retrospective method of adoption. The Group applied IFRS 15 to contracts that are initiated after the effective date and contracts that had remaining obligations as of the effective date. In respect of the prior periods, the Group retained prior period's figures as reported under the previous standards, recognising the cumulative effect of applying IFRS 15 as an adjustment to the opening balance of equity as at January 1, 2018. The Group concluded that the transitional adjustment to be made on January 1, 2018 to accumulated losses upon initial adoption of IFRS 15 is nil. It is because the Group recognizes revenue upon the transfer of significant risks and rewards, which coincides with the fulfilment of performance obligations. Additionally, the Group's contracts with customers generally has only one performance obligation. 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 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 is recognized on a straight-line basis because the entity's inputs are expended evenly throughout the performance period. Revenue from other sources (a) 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. (b) 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. |
Contract liabilities | 2.29 Contract liabilities A contract liability is recognized when a payment is received or a payment is due (whichever is earlier) from a custom before the Group transfers the related goods or services. Contract liabilities are recognized as revenue when the Group performs under the contract (i.e., transfers control of the related goods or services to the customer) . |
Borrowing costs | 2.30 Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, i.e., assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalized as part of the cost of those assets. The capitalisation of such borrowing costs ceases when the assets are substantially 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 capitalized. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. |
Dividend distribution | 2.31 Dividend distribution Dividend distribution to the Company’s shareholders is recognized as a liability in the Group’s and Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders in a general meeting. |
GENERAL INFORMATION (Tables)
GENERAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. (“Chalco 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 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, manufacturing and distribution of 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 Logistic 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 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 43.39 % — 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 % — Chalco Materials Co. Ltd. (中鋁物資有限公司) PRC/Mainland China Import and export activities 100.00 % — |
BASIS OF PREPARATION AND SIGN_3
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of initial application of standards or interpretations [line items] | |
Schedule of new and revised IFRSs adapted for the first time for the current year's financial statements | Amendments to IFRS 9 Prepayment Features with Negative Compensation IFRS 16 Leases Amendments to IAS 19 Plan Amendment, Curtailment or Settlement Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures Amendments to IFRS 10 and IAS 28 (2011) Sale or Contribution of Assets between an Investors and its Associate or Joint Venture IFRIC Interpretation 23 Uncertainty over Income Tax Treatments Annual Improvements 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 |
Schedule of new and revised IFRSs that have been issued but are not yet effective | Amendments to IFRS 3 Definition of a Business 1 Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform 1 IFRS 17 Insurance Contracts 2 Amendments to IAS 1 and IAS 8 Definition of Material 1 1 Effective for annual periods beginning on or after January 1, 2020 2 Effective for annual periods beginning on or after January 1, 2021 |
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 |
IFRS 16 | |
Disclosure of initial application of standards or interpretations [line items] | |
Summary of impact arising from the adoption of IFRS16 | Increase/(decrease) RMB'000 Assets Increase in right-of-use assets 17,976,851 Decrease in property, plant and equipment (6,720,610) Decrease in land use rights (4,306,865) Decrease in other non-current assets (20,323) Increase in total assets 6,929,053 Liabilities Increase in Interest-bearing loans and borrowings 11,010,323 Decrease in finance lease payables (4,081,270) Increase in total liabilities 6,929,053 Decrease in retained earnings — Decrease in non-controlling interests — |
Summary of lease liabilities reconciled to the operating lease commitments | Increase/(decrease) RMB'000 Operating lease commitments as at December 31, 2018 12,989,524 Less: Commitments relating to short-term leases, low-value assets leases and those leases with a remaining lease term ending on or before December 31, 2019 59,819 Undiscounted Operating lease commitments as at January 1, 2019 under IFRS 16 12,929,705 Weighted average incremental borrowing rate as at January 1, 2019 4.97 % Discounted operating lease commitments as at January 1, 2019 under IFRS 16 6,929,053 Add: Recognized Finance leases as at December 31, 2018 4,081,270 Lease liabilities as at January 1, 2019 11,010,323 |
REVENUE AND SEGMENT INFORMATI_2
REVENUE AND SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE AND SEGMENT INFORMATION | |
Schedule of revenue recognized during the years | Revenue from contracts with customers (net of value-added tax) Sales of goods 180,706,361 179,785,704 189,569,543 Rendering of services 163,732 215,557 186,703 Revenue from other sources Rental income 152,543 240,153 317,915 181,022,636 180,241,414 190,074,161 |
Schedule of disaggregated revenue information | For the year ended December 31, 2018 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 43,979,059 53,771,379 7,019,716 141,980,479 667,095 (67,632,024) 179,785,704 Rendering of services — — 215,557 — — — 215,557 Total revenue 43,979,059 53,771,379 7,235,273 141,980,479 667,095 (67,632,024) 180,001,261 Geographical markets Mainland China 43,979,059 53,771,379 7,235,273 132,763,920 667,095 (67,632,024) 170,784,702 Outside of mainland China — — — 9,216,559 — — 9,216,559 Total revenue from contracts with customers 43,979,059 53,771,379 7,235,273 141,980,479 667,095 (67,632,024) 180,001,261 Timing of revenue recognition Goods transferred at a point in time 43,979,059 53,771,379 7,019,716 141,980,479 667,095 (67,632,024) 179,785,704 Services transferred over time — — 215,557 — — — 215,557 Total revenue from contracts with customers 43,979,059 53,771,379 7,235,273 141,980,479 667,095 (67,632,024) 180,001,261 Revenue from contracts with customers External customers 14,586,564 41,313,516 7,036,936 116,610,176 454,069 — 180,001,261 Intersegment sales 29,392,495 12,457,863 198,337 25,370,303 213,026 — 67,632,024 43,979,059 53,771,379 7,235,273 141,980,479 667,095 - 247,633,285 Intersegment adjustments and eliminations (29,392,495) (12,457,863) (198,337) (25,370,303) (213,026) — (67,632,024) Total revenue 14,586,564 41,313,516 7,036,936 116,610,176 454,069 — 180,001,261 For the year ended December 31, 2019 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 43,690,995 49,043,864 7,148,644 158,633,447 492,624 (69,440,031) 189,569,543 Rendering of services — — 186,703 — — — 186,703 Total revenue 43,690,995 49,043,864 7,335,347 158,633,447 492,624 (69,440,031) 189,756,246 Geographical markets Mainland China 43,690,995 49,043,864 7,335,347 152,857,432 492,624 (69,440,031) 183,980,231 Outside of mainland China — — — 5,776,015 — — 5,776,015 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,633,447 492,624 (69,440,031) 189,756,246 Timing of revenue recognition Goods transferred at a point in time 43,690,995 49,043,864 7,148,644 158,633,447 492,624 (69,440,031) 189,569,543 Services transferred over time — — 186,703 — — — 186,703 Total revenue from contracts with customers 43,690,995 49,043,864 7,335,347 158,633,447 492,624 (69,440,031) 189,756,246 Revenue from contracts with customers External customers 14,117,594 37,349,482 7,099,211 130,864,398 325,561 — 189,756,246 Intersegment sales 29,573,401 11,694,382 236,136 27,769,049 167,063 — 69,440,031 43,690,995 49,043,864 7,335,347 158,633,447 492,624 — 259,196,277 Intersegment adjustments and eliminations (29,573,401) (11,694,382) (236,136) (27,769,049) (167,063) — (69,440,031) Total revenue 14,117,594 37,349,482 7,099,211 130,864,398 325,561 — 189,756,246 |
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 1,277,125 1,543,164 — Others 32,947 36,158 1,310,072 1,579,322 |
Schedule of performance obligations | The transaction prices allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at December 31, 2018 and December 31, 2019 are as follows: Within one year 1,579,322 1,638,826 More than one year 132,844 125,758 1,712,166 1,764,584 |
Schedule of operating segments | Year ended December 31, 2017 Corporate and other Inter- Primary operating segment Alumina aluminium Energy Trading segments eliminations Total Total revenue 38,997,261 47,245,646 6,250,966 146,856,931 645,314 (58,973,482) 181,022,636 Inter-segment revenue (24,431,939) (10,693,678) (517,269) (23,159,115) (171,481) 58,973,482 — Sales of self-produced products (Note (i)) 23,158,952 Sales of products sourced from external suppliers 100,538,864 Revenue from external customers 14,565,322 36,551,968 5,733,697 123,697,816 473,833 — 181,022,636 Segment profit/(loss) before income tax 3,290,945 826,632 (171,310) 733,896 (1,728,563) 97,575 3,049,175 Income tax expense (643,706) Profit for the year 2,405,469 Other items Finance income 233,016 83,996 44,015 192,327 153,336 — 706,690 Finance costs (708,655) (1,212,249) (1,000,767) (467,088) (1,814,663) — (5,203,422) Share of profits and losses of joint ventures 82,619 — (383,263) 1,885 306,910 — 8,151 Share of profits and losses of associates — (16,887) (181,667) 9,463 23,842 — (165,249) Amortization of land use rights (42,768) (25,120) (15) (6,376) (17,300) — (91,579) Depreciation and amortization (excluding the amortization of land use rights) (2,781,350) (2,516,058) (1,510,218) (79,342) (86,200) — (6,973,168) Gain on disposal of property, plant and equipment and land use right 47,243 40,106 (12,826) 1,673 543 — 76,739 Realized gain/(loss) on futures, forward and option contracts, net 3,398 (47,730) 1,585 (24,953) 43,749 — (23,951) Impairment of property, plant and equipment (568) — (15,632) — — — (16,200) Unrealized loss on futures, forward and option contracts, net — (17,033) — (92,719) (21,321) — (131,073) Gain on deemed disposal and disposal of subsidiaries — — 38,397 54,599 232,026 — 325,022 Changes for impairment of inventories 79,063 64,734 4,488 722 5,287 — 154,294 (Provision for)/reversal of impairment of receivables, net of bad debts recovered (17,453) 269 (25,119) (18,396) — — (60,699) Gain on disposal and dividends of available for sale — 2,792 — — 76,616 — 79,408 Gain on previously held equity interest remeasured at an acquisition-date fair value — — 117,640 — — — 117,640 Investments in associates 90,875 296,357 2,170,178 184,149 4,193,471 — 6,935,030 Investments in joint ventures 2,809,758 — 878,196 28,865 2,290,805 — 6,007,624 Additions during the period: Intangible assets — 197 284,509 372 89 — 285,167 Land use rights — — 27,956 25,199 6,060 — 59,215 Property, plant and equipment (Note (ii)) 2,642,350 5,533,168 1,268,051 64,005 256,093 — 9,763,667 Note: (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB13,187 million, sales of self-produced primary aluminium amounting RMB6,680, and sales of self-produced other products amounting to RMB3,292 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts are not included . Year ended December 31, 2018 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 44,150,937 53,802,172 7,235,273 142,017,821 667,235 (67,632,024) 180,241,414 Inter-segment revenue (29,392,495) (12,457,863) (198,337) (25,370,303) (213,026) 67,632,024 — Sales of self-produced products (Note (i)) 34,454,943 Sales of products sourced from external suppliers 82,192,575 Revenue from external customers 14,758,442 41,344,309 7,036,936 116,647,518 454,209 — 180,241,414 Segment profit/(loss) before income tax 3,496,381 (929,298) 26,020 740,454 (1,267,146) 198,103 2,264,514 Income tax expense (822,519) Profit for the year 1,441,995 Other items Finance income 100,125 54,458 15,744 136,515 185,392 — 492,234 Finance costs (399,344) (1,131,622) (1,047,285) (366,807) (1,937,438) — (4,882,496) 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 Amortization of land use rights (39,027) (41,175) (9,335) (18,615) — — (108,152) Depreciation and amortization (excluding the amortization of land use rights) (2,846,051) (2,954,801) (1,962,081) (101,705) (82,963) — (7,947,601) Gain/(loss) on disposal of property, plant and equipment and land use right 53,116 15,211 24,780 20,036 (12,045) — 101,098 Realized (loss)/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 of property, plant and equipment — — (7,450) (39,034) — — (46,484) Unrealized gain on futures, forward and option contracts, net — — — 100,967 — — 100,967 Gain/(loss) 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 of equity investments at fair value through other comprehensive income — — 1,000 — 108,914 — 109,914 loss on disposal of associates — — (1,904) — — — (1,904) (Loss)/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 period: Intangible assets 99,089 753 2,754 514 194 — 103,304 Land use rights 2,786 — — 52 — — 2,838 Property, plant and equipment (Note (ii)) 2,564,003 4,602,580 1,610,442 101,360 143,839 — 9,022,224 Note: (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB16,561 million, sales of self-produced primary Aluminium amounting RMB13,517 million, and sales of self-produced other products amounting to RMB4,376 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts (Note 20) are not included. Year ended December 31, 2019 Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 43,899,982 49,089,019 7,345,971 158,686,280 492,940 (69,440,031) 190,074,161 Inter-segment revenue (29,573,401) (11,694,382) (236,136) (27,769,049) (167,063) 69,440,031 — Sales of self-produced products (Note (i)) 24,374,356 Sales of products sourced from external suppliers 106,542,875 Revenue from external customers 14,326,581 37,394,637 7,109,835 130,917,231 325,877 — 190,074,161 Segment profit/(loss) before income tax 844,848 687,246 403,479 952,848 (987,704) 213,084 2,113,801 Income tax expense (625,720) Profit for the year 1,488,081 Other items Finance income 61,644 53,252 35,093 105,622 5,540 — 261,151 Finance costs (651,238) (1,328,730) (1,064,769) (223,928) (1,652,514) — (4,921,179) 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 Amortization of right-of-use assets (495,693) (338,975) (146,139) (45,541) (49,477) — (1,075,825) Depreciation and amortization (excluding the amortization of right-of-use assets) (2,830,152) (3,235,356) (1,488,077) (79,366) (81,467) — (7,714,418) (Loss)/gain on disposal of property, plant and equipment, and land use rights (587,503) 830,205 (1,010) 7,216 (5,948) — 242,960 Gain on disposal of business 262,677 — — — — — 262,677 Realized loss on futures, forward and option contracts, net — — — 60,671 — — 60,671 Other income 21,252 716 47,666 6,241 2,757 — 78,632 Impairment losses on property, plant and equipment and other non-current assets (8,743) (247,112) (3,499) — — — (259,354) Unrealized loss on futures, forward and option contracts,net — — — (9,851) — — (9,851) Gain on share of associates’ net assets — — — — 295,288 — 295,288 Gain on disposal of a subsidiary 118 — 3,014 2,738 255,317 — 261,187 Gain on disposal of associates — — 159,514 — — — 159,514 Changes for impairment of inventories 69,740 166,331 (19,076) 34,136 — — 251,131 Reversal of/ (provision for) impairment of receivables, net of bad debts recovered 6,837 1,088 (53,227) (121,154) (3,295) — (169,751) Dividends of equity investments at fair value through other comprehensive income — — 1,000 — 96,775 — 97,775 Investments in associates 83,424 574,385 2,021,964 362,757 6,469,871 — 9,512,401 Investments in joint ventures 1,076,085 — 298,991 79,199 1,931,307 — 3,385,582 Additions during the period: Intangible assets 209,365 949,013 (5,062) 1,869 201 — 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)) 6,486,248 2,381,644 1,454,659 132,841 165,832 — 10,621,224 Note: (i) The sales of self-produced products include sales of self-produced Alumina amounting to RMB13,329 million, sales of self-produced primary Aluminium amounting RMB10,689 million, and sales of self-produced other products amounting to RMB356 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts are not included. Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As at December 31, 2018 Segment assets 82,677,250 57,712,842 39,458,086 20,217,906 33,577,526 233,643,610 Reconciliation: Elimination of inter-segment receivables (34,228,334) Other eliminations (155,283) Corporate and other unallocated assets: Deferred tax assets 1,542,655 Prepaid income tax 162,103 Total assets 200,964,751 Segment liabilities 38,817,030 34,492,538 27,265,031 14,530,230 50,492,049 165,596,878 Reconciliation: Elimination of inter-segment payables (34,228,334) Corporate and other unallocated liabilities: Deferred tax liabilities 1,812,805 Income tax payable 113,783 Total liabilities 133,295,132 Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As at December 31, 2019 Segment assets 90,584,165 63,155,573 38,886,172 17,360,278 49,658,116 259,644,304 Reconciliation: Elimination of inter-segment receivables (58,081,964) Other eliminations (106,985) Corporate and other unallocated assets: Deferred tax assets 1,522,216 Prepaid income tax 93,093 Total assets 203,070,664 Segment liabilities 47,247,335 38,588,473 26,582,436 9,308,667 66,771,364 188,498,275 Reconciliation: Elimination of inter-segment payables (58,081,964) Corporate and other unallocated liabilities: Deferred tax liabilities 1,712,739 Income tax payable 216,554 Total liabilities 132,345,604 |
Schedule of geographical information of the operating segments | 2017 2018 2019 Segment revenue from external customers — Mainland China 171,956,305 171,024,855 184,298,146 — Outside Mainland China 9,066,331 9,216,559 5,776,015 181,022,636 180,241,414 190,074,161 2018 2019 Non-current assets (excluding financial assets and deferred tax assets) — Mainland China 137,939,763 147,798,239 — Outside Mainland China 646,327 2,668,533 138,586,090 150,466,772 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Computer software, Electrolytic aluminium Mining Mineral production rights and exploration quota and Goodwill others rights others Total Year ended December 31, 2018 Opening net carrying amount 2,345,930 7,066,428 1,111,586 113,689 10,637,633 Additions — 98,995 — 4,309 103,304 Acquisition of subsidiaries 1,163,949 728,066 — 1,285 1,893,300 Reclassification — 7,072 (7,072) — — Disposals — — — (168) (168) Amortization — (265,108) — (30,793) (295,901) Transfer from property, plant and equipment (Note 6) — 41,148 — 484,068 525,216 Currency translation differences 754 5,782 9,445 — 15,981 Closing net carrying amount 3,510,633 7,682,383 1,113,959 572,390 12,879,365 As at December 31, 2018 Cost 3,510,633 9,430,183 1,113,959 888,975 14,943,750 Accumulated amortization and impairment — (1,747,800) — (316,585) (2,064,385) Net carrying amount 3,510,633 7,682,383 1,113,959 572,390 12,879,365 Computer software, Electrolytic aluminium Mining Mineral production rights and exploration quota and Goodwill others rights others Total Year ended December 31, 2019 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 6) — — — 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 at 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 | Cost of sales 241,261 265,108 294,766 General and administrative expenses 34,616 30,793 44,172 275,877 295,901 338,938 |
Schedule of summary of goodwill allocated to each segment | December 31, 2018 December 31, 2019 Primary Primary Alumina aluminum Alumina aluminum Qinghai Branch — 217,267 — 217,267 Guangxi Branch 189,419 — 189,419 — Lanzhou Branch — 1,924,259 — 1,924,259 PT. Nusapati Prima (“PTNP“) 15,739 — 15,998 — Shanxi Huaxing 1,163,949 — 1,163,949 — 1,369,107 2,141,526 1,369,366 2,141,526 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 Opening net carrying amount 32,288,223 52,784,696 541,908 129,630 9,987,437 95,731,894 Reclassifications and internal transfers 3,204,611 3,600,371 75,277 5,149 (6,885,408) — Government grants (468) (113,481) — — — (113,949) Transfer to intangible assets (Note 5) — — — — (525,216) (525,216) Transfer to prepaid land lease payments (Note 19) — — — — (382,242) (382,242) Transfer to investment properties (Note 7) (11,039) — — — — (11,039) Transfer from investment properties (Note 7) 21,773 — — — — 21,773 Additions 230,243 1,998,717 31,668 48,912 8,016,079 10,325,619 Acquisition of subsidiaries 4,633,728 4,026,062 17,443 5,937 3,149,060 11,832,230 Disposal of subsidiaries — (472) (101) (53) (8,893) (9,519) Disposals (251,212) (2,505,158) (39,827) (3,347) (275,391) (3,074,935) Depreciation (1,266,607) (6,087,890) (116,807) (28,018) — (7,499,322) Impairment losses — (7,061) — — (39,423) (46,484) Currency translation differences 99 146 34 27 — 306 Closing net carrying amount 38,849,351 53,695,930 509,595 158,237 13,036,003 106,249,116 As at December 31, 2018 Cost 56,620,994 103,608,492 2,538,835 603,665 13,187,424 176,559,410 Accumulated depreciation and impairment (17,771,643) (49,912,562) (2,029,240) (445,428) (151,421) (70,310,294) Net carrying amount 38,849,351 53,695,930 509,595 158,237 13,036,003 106,249,116 Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total Year ended December 31, 2019 Opening net carrying amount 38,849,351 53,695,930 509,595 158,237 13,036,003 106,249,116 Impact on initial application of IFRS 16 (Note 2.2) (148,673) (5,851,498) — — (720,439) (6,720,610) Opening net book amount at January 1, 2019 38,700,678 47,844,432 509,595 158,237 12,315,564 99,528,506 Currency translation differences 89 103 17 46 — 255 Reclassifications and internal transfers 3,869,147 5,125,998 (29,181) 207,546 (9,173,510) — Transfer to intangible assets (Note 5) — — — — (63,370) (63,370) Transfer to right-of-use assets (107,368) (495) — — — (107,863) Transfer to investment properties (Note 7) (179,564) — — — — (179,564) Additions 576,035 635,678 44,122 13,506 9,351,883 10,621,224 Transfer from right-of-use assets (Note 19) * — 1,674,260 — — — 1,674,260 Government grants (7,211) (69,012) — — — (76,223) Disposals (79,280) (378,816) (19,672) (938) (70,201) (548,907) Disposal of subsidiaries (85,851) (73,432) (3,270) (239) — (162,792) Depreciation (1,849,121) (5,121,646) (100,547) (23,402) — (7,094,716) Impairment loss (105,347) (153,394) (14) (185) (414) (259,354) Closing net carrying amount 40,732,207 49,483,676 401,050 354,571 12,359,952 103,331,456 As at December 31, 2019 Cost 60,153,059 101,624,509 2,238,818 829,575 12,511,787 177,357,748 Accumulated depreciation and impairment (19,420,852) (52,140,833) (1,837,768) (475,004) (151,835) (74,026,292) Net carrying amount 40,732,207 49,483,676 401,050 354,571 12,359,952 103,331,456 |
Schedule of depreciation expenses recognized in profit or loss | Cost of sales 6,387,773 7,291,380 6,926,580 General and administrative expenses 160,143 201,337 161,547 Selling and distribution expenses 6,926 6,605 6,589 6,554,842 7,499,322 7,094,716 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT PROPERTIES | |
Schedule of net carrying amount of investment properties | Buildings Land use rights Total Year ended December 31, 2018 Opening net carrying amount 254,061 1,078,309 1,332,370 Transfer from property, plant and equipment (Note 6) 11,039 — 11,039 Transfer to property, plant and equipment (Note 6) (21,773) — (21,773) Disposal — (143,401) (143,401) Depreciation (7,353) (14,876) (22,229) Closing net carrying amount 235,974 920,032 1,156,006 As at December 31, 2018 Cost 251,626 939,015 1,190,641 Accumulated depreciation (15,652) (18,983) (34,635) Net carrying amount 235,974 920,032 1,156,006 Buildings Land use rights 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 6) 179,564 — 179,564 Transfer from right-of-use assets (Note 19) — 239,765 239,765 Disposal (36,949) (52,537) (89,486) Depreciation (8,484) (18,075) (26,559) Impairment — (87) (87) Closing net carrying amount 414,168 1,089,098 1,503,266 As at 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, 2019 | |
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 % |
Schedule of summarized financial information joint venture | Share of the joint ventures’ profits and losses for the year (340,145) 91,250 Share of the joint ventures’ total comprehensive income (340,145) 91,250 Aggregate carrying amount of the Group’s investments in joint ventures 1,858,386 1,870,538 |
Schedule of summarized financial information associates | Share of the associates’ profits and losses 39,335 48,767 Share of the associates’ total comprehensive income 39,335 48,767 Aggregate carrying amount of the Group’s investments in the associates 6,363,462 9,512,401 |
Associates | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of movements in investments | As at January 1 6,935,030 6,363,462 Investment to Yunnan Aluminium (Note (1), Note (27) ) — 1,491,736 Investment to Heqing Yixin Aluminum Industry Co., Ltd. (鶴慶溢鑫鋁業有限公司) (“Yixin Aluminum”) (Note (2), Note (27) ) — 941,160 Capital injections, other than to Yunnan Aluminium and Yixin Aluminum 315,300 729,368 Subsidiaries changed into associates — 16,283 Associates changed into subsidiaries (862,214) — Capital reduction (32,720) (20,250) Share of profits and losses for the year 39,335 48,767 Cash dividends declared (36,157) (50,314) Share of changes in reserves 4,888 (7,811) As at December 31 6,363,462 9,512,401 |
Joint venture | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of movements in investments | As at January 1 6,007,624 3,393,349 Capital injections 90,000 50,000 A joint venture changed into a subsidiary (2,048,780) — Disposal* — (114,604) Share of profits and losses for the year (199,452) 270,115 Share of changes in reserves (2,837) 8,746 Cash dividends declared (236,253) (222,024) Impairment (216,953) — As at December 31 3,393,349 3,385,582 |
Guangxi Huayin Aluminum Co., Ltd. | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of summarized financial information joint venture | Cash and cash equivalents 232,022 261,447 Other current assets 1,233,669 1,222,290 Current assets 1,465,691 1,483,737 Non-current assets 5,473,480 5,249,101 Financial liabilities 840,000 1,106,593 Other current liabilities 961,283 960,077 Current liabilities 1,801,283 2,066,670 Non-current liabilities 814,691 414,299 Net assets 4,323,197 4,251,869 Non-controlling interests — — Reconciliation to the Group’s interest in the joint venture: Proportion of the Group’s ownership 33 % 33 % Group’s share of net assets of the joint venture 1,426,655 1,403,117 Carrying amount of the investment 1,426,655 1,403,117 |
EQUITY INVESTMENTS DESIGNATED_2
EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS | |
Schedule of equity investments designated at fair value through other comprehensive income/available-for-sale financial investments | December 31, December 31, Equity investments designated at fair value through other comprehensive income Listed equity investments, at fair value Dongxing securities Co., Ltd.(東興證券) 6,441 8,853 6,441 8,853 Unlisted equity investments Sanmenxia Dachang Mining Co., Ltd. (三門峽達昌礦業有限公司) 20,926 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) 18,010 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) 19,306 20,000 China Color International Alumina Development Co., Ltd. (中色國際氧化鋁開發有限公司) 9,000 6,614 Luoyang Jianyuan Mining Co., Ltd. (洛陽建元礦業有限公司) 4,948 4,960 Ningxia Ningdian Logistics Transportation Co., Ltd. (寧夏寧電物流運輸有限公司) 1,194 1,640 Chinalco Innovative Development Investment Company Limited (“Chinalco Innovative”) (中鋁創投) — 365,681 Size Industry Investment Fund (Note) 1,650,000 1,653,251 Fangchenggang Chisha Pier Co., Ltd. (防城港赤沙碼頭有限公司) — 700 Xingxian Shengxing Highway Investment Management Co., Ltd. (興縣盛興公路投資管理有限公司) — 126,237 1,723,384 2,230,398 1,729,825 2,239,251 |
DEFERRED TAX (Tables)
DEFERRED TAX (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DEFERRED TAX | |
Schedule of movements in deferred tax assets and deferred tax liabilities | Unrealized Provision Accrued profit at for impairment expenses Tax losses consolidation Others Total As at January 1, 2018 525,439 264,209 539,899 166,043 168,647 1,664,237 Acquisition of subsidiaries 360 — — — 7,734 8,094 (Charged)/credited to profit or loss (139,956) (21,839) 76,338 3,833 5,989 (75,635) As at December 31, 2018 385,843 242,370 616,237 169,876 182,370 1,596,696 As at January 1, 2019 385,843 242,370 616,237 169,876 182,370 1,596,696 Credited/(charged) to profit or loss 59,218 (33,214) (40,047) (521) (2,956) (17,520) As at December 31, 2019 445,061 209,156 576,190 169,355 179,414 1,579,176 Movements in deferred tax liabilities: Fair value Fair value adjustments arising Interest changes of Depreciation from acquisition of capitalisation financial assets and amortization subsidiaries Total As at January 1, 2018 52,934 5,972 7,659 988,848 1,055,413 Exchange realignment — — — 1,353 1,353 Credited to other comprehensive income — (3,769) — — (3,769) Acquisition of subsidiaries — — — 822,229 822,229 (Credited)/charged to profit or loss (9,102) 3,403 24,830 (27,511) (8,380) As at December 31, 2018 43,832 5,606 32,489 1,784,919 1,866,846 As at 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 Credited to profit or loss (5,825) (12,517) (8,616) (85,247) (112,205) As at December 31, 2019 38,007 7,731 23,873 1,700,088 1,769,699 |
Schedule of analysis of the deferred tax balances of the Group for financial reporting purposes | December 31, December 31, Net deferred tax assets 1,542,655 1,522,216 Net deferred tax liabilities 1,812,805 1,712,739 |
Schedule of the expiry profile of unprovided tax losses | December 31, December 31, Expiring in 2019 6,753,096 — 2020 711,878 690,646 2021 975,081 958,188 2022 1,211,002 1,211,002 2023 1,736,412 997,376 2024 — 2,353,070 11,387,469 6,210,282 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | December 31, December 31, Financial assets - Other long-term receivables 204,718 128,673 Prepayment for mining rights 808,736 813,822 Long-term prepaid expenses 667,772 648,983 Deferred losses for sale and leaseback transactions (Note) 1,323,221 766,548 Others 1,438,198 849,817 4,237,927 3,079,170 4,442,645 3,207,843 Note: As disclosed in Note 20, the Group entered into several sale and leaseback agreements which constitute finance leases during the year. The deferred losses resulted 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, 2019 | |
INVENTORIES | |
Schedule of inventories | December 31 December 31, Raw materials 8,362,697 6,825,650 Work-in-progress 8,684,506 7,847,599 Finished goods 3,280,641 4,501,633 Spare parts 879,794 842,734 Packaging materials and others 63,227 57,870 21,270,865 20,075,486 Less: provision for impairment of inventories (811,197) (560,066) 20,459,668 19,515,420 |
Schedule of provision for inventories | As at January 1 457,252 811,197 Provision for impairment of inventories 2,413,098 1,503,406 Disposal of subsidiary — (772) Reversal arising from increase in net realizable value (165,510) (340,134) Written off upon sales of inventories (1,893,643) (1,413,631) As at December 31 811,197 |
TRADE AND NOTES RECEIVABLES (Ta
TRADE AND NOTES RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TRADE AND NOTES RECEIVABLES | |
Schedule of trade and notes receivables | December 31 December 31, Trade receivables 5,868,796 5,273,969 Less: provision for impairment (659,261) (714,857) 5,209,535 4,559,112 Notes receivable 2,894,482 2,834,011 8,104,017 7,393,123 |
Schedule of ageing analysis of trade and notes receivables | December 31, December 31, Within 1 year 3,320,735 2,907,407 Between 1 and 2 years 906,302 742,477 Between 2 and 3 years 158,162 377,836 Over 3 years 1,483,597 1,246,249 5,868,796 5,273,969 Less: provision for impairment (659,261) (714,857) 5,209,535 4,559,112 |
Schedule of credit risk exposure | As at December 31, 2018 Gross carrying Expected credit Expected credit amount losses loss rate (%) Alumina and primary aluminum Within 1 year 401,691 3,696 0.92 Between 1 and 2 years 55,766 6,179 11.08 Between 2 and 3 years 16,546 14,893 90.01 Over 3 years 379,213 359,759 94.87 853,216 384,527 / Trading Within 1 year 473,153 662 0.14 Between 1 and 2 years 4,146 70 1.68 Between 2 and 3 years 74 3 3.80 Over 3 years 19,422 3,787 19.50 496,795 4,522 / Energy Within 1 year 88,462 3,388 3.83 Between 1 and 2 years 3,217 685 21.28 Between 2 and 3 years 15,417 3,688 23.92 Over 3 years 12,710 6,216 48.91 119,806 13,977 / Corporate and other operating segments Within 1 year 108,627 6,539 6.02 Between 1 and 2 years 10,974 7,767 70.78 Between 2 and 3 years 4,026 3,823 94.96 Over 3 years 25,800 25,142 97.45 149,427 43,271 / 1,619,244 446,297 Individually assessed trade receivables 4,249,552 212,964 5,868,796 659,261 As at December 31, 2019 Gross carrying Expected credit Expected credit amount losses loss rate (%) Alumina and primary aluminum Within 1 year 207,602 1,910 0.92 Between 1 and 2 years 47,883 5,305 11.08 Between 2 and 3 years 20,712 18,643 90.01 Over 3 years 205,395 194,858 94.87 481,592 220,716 / Trading Within 1 year 113,596 159 0.14 Between 1 and 2 years — — 1.69 Between 2 and 3 years 1,001 41 4.05 Over 3 years 79,793 15,560 19.50 194,390 15,760 / Energy Within 1 year 348,399 13,343 3.83 Between 1 and 2 years 11,722 2,496 21.29 Between 2 and 3 years 9,073 2,170 23.92 Over 3 years 7,269 3,555 48.91 376,463 21,564 / Corporate and other operating segments Within 1 year 51,774 3,117 6.02 Between 1 and 2 years 18,129 12,831 70.78 Between 2 and 3 years 5,399 5,127 94.96 Over 3 years 6,176 6,019 97.45 81,478 27,094 / 1,133,923 285,134 Individually assessed trade receivables 4,140,046 429,723 5,273,969 714,857 |
Schedule of movements on the provision for impairment of trade and notes receivables | As at January 1 546,102 659,261 Effect of adoption of IFRS 9 112,407 — At beginning of year 658,509 659,261 Impairment loss 64,544 236,238 Written off (33,469) (97,554) Reversal (20,466) (83,095) Others (9,857) 7 As at December 31 659,261 714,857 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | December 31, December 31, Financial assets — Deposits paid to suppliers 317,946 501,918 — Dividends receivable 47,167 82,796 — Receivables from disposal of businesses and assets 134,789 90,399 — Entrusted loans and loans receivable from third parties 1,645,205 1,544,070 — Entrusted loans and loans receivable from related parties 1,297,892 1,309,095 — Receivables from disposal of properties 1,881,513 1,948,434 — Interest receivables 40,936 40,936 — Recoverable reimbursement for freight charges 415,232 223,884 — Receivable of governments grants 129,977 517,365 — Other financial assets 787,396 1,185,466 6,698,053 7,444,363 Less: impairment allowance (1,764,068) (1,720,439) 4,933,985 5,723,924 Advances to employees 23,744 17,207 Deductible input value added tax receivables 2,189,470 2,424,004 Prepaid income tax 162,103 93,093 Prepayments to related parties for purchases 586,312 229,324 Prepayments to suppliers for purchases and others 964,158 634,548 Others 169,881 117,678 4,095,668 3,515,854 Less: provision for impairment (4,139) (2,715) 4,091,529 3,513,139 Total other current assets 9,025,514 9,237,063 |
Schedule of ageing analysis of financial assets included in other current assets | December 31, December 31, Within 1 year 1,456,520 1,628,723 Between 1 and 2 years 283,844 752,731 Between 2 and 3 years 844,262 151,974 Over 3 years 4,113,427 4,910,935 6,698,053 7,444,363 Less: provision for impairment (1,764,068) (1,720,439) 4,933,985 5,723,924 |
Schedule of movements in the provision for impairment of other current assets | As at January 1 1,677,277 1,768,207 Effect of adoption of IFRS 9 38,502 — At beginning of year 1,715,779 1,768,207 Impairment loss 65,494 42,898 Write off (6,117) Reversal (1,731) (26,290) Others (5,218) 658 As at December 31 1,768,207 |
Schedule of financial assets included in other current assets at amortized cost | Gross carrying Expected credit As at 31, December 2018 amount losses Stage 1 – 12 months expected credit loss 1,098,455 — Stage 2 – life time expected credit loss 3,744,612 88,974 Stage 3 – life time expected credit loss with credit-impaired 1,796,526 1,675,094 6,639,593 1,764,068 As at December 31, 2019 Gross carrying amount Expected credit losses Stage 1 – 12 months expected credit loss 1,632,766 — Stage 2 – life time expected credit loss 4,052,681 82,061 Stage 3 – life time expected credit loss with credit impaired 1,758,916 1,638,378 7,444,363 1,720,439 |
CASH AND CASH EQUIVALENTS AND_2
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | |
Schedule of cash and cash equivalents and restricted cash | December 31, December 31, Restricted cash 2,165,288 1,305,781 Cash and cash equivalents 19,130,835 7,759,190 21,296,123 9,064,971 |
Schedule of cash and cash equivalents denominated in foreign currency | December 31, December 31, RMB 18,026,265 7,858,867 USD 3,256,625 1,195,720 HKD 8,321 4,423 EUR 371 1,943 AUD 2,552 — IDR 1,989 4,018 21,296,123 9,064,971 |
INTEREST -BEARING LOANS AND BOR
INTEREST -BEARING LOANS AND BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTEREST BEARING LOANS AND BORROWINGS | |
Schedule of interest bearing loans and borrowings | December 31, December 31, Long-term loans and borrowings Finance lease payables (Note 20) 4,081,270 — Lease liabilities (Note 19) — 8,369,262 Bank and other loans (Note (a)) — Secured (Note (f)) 12,608,727 13,254,721 — Guaranteed (Note (e)) 3,040,400 3,948,400 — Unsecured 30,491,613 21,632,766 46,140,740 38,835,887 Medium-term notes and bonds and long-term bonds and private placement notes (Note (b)) — Unsecured 10,094,861 16,736,755 Total long-term loans and borrowings 60,316,871 63,941,904 Current portion of lease liabilities (Note 19) — (1,358,654) Current portion of finance lease payables (Note 20) (2,328,358) — Current portion of medium-term bonds and long-term bonds (396,727) — Current portion of long-term bank and other loans (3,384,400) (3,339,687) Non-current portion of long-term loans and borrowings 54,207,386 59,243,563 December 31, December 31, Short-term loans and borrowings Bank and other loans (Note (c)) — Secured (Note (f)) 1,220,680 465,000 — Guaranteed (Note (e)) 240,000 — — Unsecured* 37,887,420 20,773,166 39,348,100 21,238,166 Short-term bonds, unsecured (Note (d)) 500,000 9,331,488 Gold leasing arrangements (Note (g)) 1,607,905 7,018,609 Current portion of lease liabilities (Note 19) — 1,358,654 Current portion of finance lease payables (Note 20) 2,328,358 — Current portion of medium-term notes 396,727 — Current portion of long-term bank and other loans 3,384,400 3,339,687 Total short-term borrowings and current portion of long-term loans and borrowings 47,565,490 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 3,382,325 3,337,202 2,075 2,485 3,384,400 3,339,687 Between 1 and 2 years 7,375,557 7,523,290 2,399 2,485 7,377,956 7,525,775 Between 2 and 5 years 16,586,390 9,151,573 7,197 7,455 16,593,587 9,159,028 Over 5 years 18,777,275 18,806,428 7,522 4,969 18,784,797 18,811,397 46,121,547 38,818,493 19,193 17,394 46,140,740 38,835,887 |
Schedule of interest-bearing loans and borrowings in which the Group received guarantees | December 31, December 31, Guarantors Long-term loans Yinyi Fengdian, Neimenggu, Alashan (Note (iv)) — 150,000 Ningxia Energy (Note (i)) 892,400 1,274,400 Yinxing Energy (Note (i)) 70,000 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)) 1,600,000 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)) 246,000 10,000 Hangzhou Jinjiang (Note (v)) — 123,500 Qingzhen Industrial Investment Co., Ltd.*(“Qingzhen Investment”) (清鎮市工業投資有限公司) (Note (v)) 116,000 47,250 Guizhou Industrial Investment Group Co., Ltd.*(“Guizhou Investment”) (貴州產業投資(集團)有限責任公司) (Note (v)) 116,000 47,250 Size Industry Investment Fund (北京中鋁交銀四則產業投資基金管理合夥企業(有限合夥)) (Note (v)) — 1,000,000 3,040,400 3,948,400 Short-term loans China Great Wall Aluminum Co., Ltd.*(“China Great Wall Aluminum”) (中國長城鋁業有限公司) (Note(vi)) 40,000 — Hangzhou Jinjiang, Qingzhen Investment and Guizhou Investment (Note(v)) 200,000 — 240,000 — Note: (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. (vi) The guarantor is a subsidiary of Chinalco. |
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 December 31, December 31, Face value /maturity interest rate 2018 Medium-term notes 2,000,000/2021 5.84 % 1,986,418 1,992,339 2019 Medium-term bonds 2,000,000/2024 4.31 % — 1,982,228 2016 private placement notes 3,215,000/2019 5.12 % 396,727 — 2018 Medium-term bonds 1,100,000/2021 4.66 % 1,097,003 1,098,218 2018 Medium-term bonds 900,000/2023 5.06 % 897,820 898,315 2018 Medium-term bonds 1,400,000/2021 4.30 % 1,395,970 1,397,319 2018 Medium-term bonds 1,600,000/2023 4.57 % 1,595,311 1,596,192 2019 Medium-term bonds 2,000,000/2022 3.84 % — 1,998,604 2019 Medium-term bonds 1,000,000/2022 3.50 % — 1,997,097 2019 Medium-term bonds 900,000/2023 4.99 % — 999,462 2018 Hong Kong Medium-term bonds 2,785,840/2021 5.25 % 2,725,612 2,776,981 10,094,861 16,736,755 |
Short-term bonds | |
INTEREST BEARING LOANS AND BORROWINGS | |
Schedule of interest bearing loans and borrowings | Effective December 31, December 31, Face value /maturity interest rate 2018 Ningxia short-term bonds 500,000/2019 5.00 % 500,000 — 2019 Ningxia short-term bonds 300,000/2020 3.97 % — 300,000 2019 short-term bonds 1,000,000/2020 2.45 % — 1,008,161 2019 short-term bonds 2,000,000/2020 2.63 % — 2,013,127 2019 short-term bonds 3,000,000/2020 2.00 % — 3,008,384 2019 short-term bonds 3,000,000/2020 2.30 % — 3,001,816 500,000 9,331,488 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASE | |
Summary of land use rights | December 31, Operating leases: In the Mainland China, held on: Leases less than 10 years 768,153 Leases between 10 and 50 years 2,753,882 Leases over 50 years 784,830 4,306,865 As at January 1, 3,604,201 Additions 2,838 Acquisition of subsidiaries 460,638 Transfer from property, plant and equipment (Note 6) 382,242 Government grants (34,174) Disposal of subsidiaries (728) Amortization (108,152) As at December 31, 4,306,865 |
Summary of carrying amounts of right-of-use assets and the movements during the period | Buildings Machinery Land use rights Total As at January 1, 2019 396,499 6,129,771 11,450,581 17,976,851 Additions 21,203 11,606 1,215,049 1,247,858 Transfer to investment properties (Note 7) — — (239,765) (239,765) Transfer to property, plant and equipment (Note 6) — (1,674,260) — (1,674,260) Government grants — (107,441) — (107,441) Contract modification (45,507) — (137,358) (182,865) Disposal of subsidiaries — — (52,668) (52,668) Depreciation (84,940) (601,891) (388,994) (1,075,825) Impairment losses — — (1,448) (1,448) As at December 31, 2019 287,255 3,757,785 11,845,397 15,890,437 |
Summary of carrying amounts of lease liabilities and the movements during the period | Lease liabilities Carrying amount at January 1, 11,010,323 New leases 82,370 Contract modification (178,575) Accretion of interest recognized during the year 487,250 Payments (3,032,106) Carrying amount at December 31, 8,369,262 Analyzed into: Current portion 1,358,654 Non-current portion 7,010,608 |
Summary of amounts recognised in profit or loss in relation to leases | Interest on lease liabilities 487,249 Depreciation charge of right-of-use assets 1,075,825 Expense relating to short-term leases and other leases with remaining lease terms ended on or before December 31, 2019 63,626 Expense relating to leases of low-value assets 1,800 Total amount recognized in profit or loss 1,628,500 |
Summary of exercise date of extension and termination options that are not included in the lease terms | Payable within Payable after five years five year Extension options expected not to be exercised — — Termination options expected to be exercised — — |
FINANCE LEASE PAYABLES (Tables)
FINANCE LEASE PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FINANCE LEASE PAYABLES | |
Schedule of future minimum lease payments under finance leases and their present values | Minimum lease Present value of minimum payments lease payments December 31, December 31, Amounts payable: Within one year 2,518,653 2,328,358 In the second year 1,161,490 1,075,050 In the third to fifth years, inclusive 707,716 664,889 After five years 13,238 12,973 Total minimum finance lease payments 4,401,097 4,081,270 Future finance charges (319,827) Total net finance lease payables (Note 18) 4,081,270 Portion classified as current liabilities (Note 18) (2,328,358) Non-current portion 1,752,912 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of other non current liabilities | December 31, December 31, Financial liabilities -Long-term payables for mining rights 788,133 1,108,075 -Other financial liabilities 52,926 45,412 841,059 1,153,487 Obligations in relation to early retirement schemes ( Note (i)) 777,305 426,737 Deferred government grants (Note (ii)) 314,045 245,916 Deferred gain relating to sales and leaseback agreements 240,661 125,707 Contract liabilities 132,844 125,758 Provision for rehabilitation 121,033 131,248 Others 11,217 10,721 1,597,105 1,066,087 2,438,164 2,219,574 |
Schedule of obligations in relation to retirement benefits under the Group's early retirement schemes | As at January 1, 1,438,440 1,293,841 Provision made during the year (Note 29) 447,660 210,428 Interest costs 62,801 18,260 Payment during the year (655,060) (680,888) As at December 31, 1,293,841 841,641 Non-current 777,305 426,737 Current (Note 22) 516,536 414,904 1,293,841 841,641 |
OTHER PAYABLES AND ACCRUED LI_2
OTHER PAYABLES AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER PAYABLES AND ACCRUED LIABILITIES | |
Schedule of other payables and accrued liabilities | December 31, December 31, Financial liabilities -Payable for capital expenditures 5,694,632 6,832,365 -Accrued interest 396,286 494,341 -Payables withheld as guarantees and deposits 1,102,358 1,339,722 -Dividends payable by subsidiaries to non-controlling shareholders 543,207 518,360 -Consideration payable for investment projects 280,856 141,740 -Current portion of payables for mining rights 210,325 372,824 -Others 1,058,798 1,083,646 9,286,462 10,782,998 Taxes other than income taxes payable * 831,151 732,264 Accrued payroll and bonus 220,851 21,902 Staff welfare payables 391,824 258,448 Current portion of obligations in relation to early retirement schemes (Note 21) 516,536 414,904 Contribution payable for pension insurance 30,145 20,386 Output value-added tax on pending 252,691 210,283 Others 37,492 999 2,280,690 1,659,186 11,567,152 12,442,184 * 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, 2019 | |
TRADE AND NOTES PAYABLES | |
Schedule of trade and notes payables | December 31, December 31, Trade payables 8,570,102 7,858,214 Notes payable 5,439,162 4,726,541 14,009,264 12,584,755 |
Schedule of ageing analysis of trade and notes payables | December 31, December 31, Within 1 year 13,598,039 12,145,985 Between 1 and 2 years 140,665 229,221 Between 2 and 3 years 47,654 30,713 Over 3 years 222,906 178,836 14,009,264 12,584,755 |
PLEDGE OF ASSETS (Tables)
PLEDGE OF ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PLEDGE OF ASSETS | |
Summary of pledged assets | December 31, December 31, Property, plant and equipment (Note 6) 4,168,239 4,946,338 Land use rights (Note 19) 328,116 — Right-of-use assets (Note 19) — 373,048 Intangible assets (Note 5) 772,597 757,269 Notes receivable (Note 13) 933,551 667,190 Investments in associates (Note 8) 535,610 538,787 6,738,113 7,282,632 |
PROFIT BEFORE INCOME TAX (Table
PROFIT BEFORE INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROFIT BEFORE INCOME TAX | |
Schedule of analysis of profit before income tax | Purchase of inventories in relation to trading activities 98,282,748 85,443,397 104,928,962 Raw materials and consumables used, and changes in work-in-progress and finished goods 34,550,042 43,197,855 35,573,467 Power and utilities 17,274,948 17,650,214 16,755,424 Depreciation of right-of-use assets — — 1,075,825 Depreciation and amortization (Other than depreciation of right-of-use assets) 7,064,747 8,055,753 7,714,418 Employee benefit expenses (Note 29) 6,975,281 7,433,027 7,773,170 Repairs and maintenance 1,716,940 1,750,194 1,867,160 Transportation expenses 1,768,604 1,893,659 950,716 Logistic cost 1,894,061 2,794,733 2,469,531 Taxes other than income tax expense (Note (i)) 858,344 936,546 904,088 Rental expenses for land use rights and buildings 497,356 649,640 — Packaging expenses 267,547 261,626 277,785 Research and development expenses 498,234 626,873 940,828 Auditors’ remuneration expense (Note (ii)) 31,815 30,852 33,337 Note: (i) Taxes other than income tax expense mainly comprise surcharges, land use tax, property tax and stamp duties. (ii) During the year ended December 31, 2019, auditors’ remuneration included audit and non-audit services provided by Ernst & Young, including Ernst & Young, Hong Kong and Ernst & Young Hua Ming LLP, amounting to RMB27.8 million (2017:RMB23.1 million, 2018: RMB26.7 million), and services provided by other auditors. |
OTHER GAINS, NET (Tables)
OTHER GAINS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER GAINS, NET | |
Schedule of other gains, net | Gain on disposal of subsidiaries (Note 39) 325,022 3,517 261,187 Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income (Note (1)) 79,408 109,914 97,775 Realized (losses)/gains on futures, forward and option contracts, net (Note (2)) (23,951) 40,492 60,671 Unrealized (losses)/gains on futures, forward and option contracts, net (Note (2)) (131,073) 100,967 (9,851) Gain on disposal of property, plant and equipment and land use rights, net (Note (3)) 76,739 272,098 259,684 Gain on previously held equity interests remeasured at acquisition-date fair value 117,640 748,086 — Gain on share of associates’ net assets (Note 8(b)), (Note (4)) — — 295,288 (Loss)/gain on disposal of investment in a joint venture/an associate (Note (5)) — (1,904) 159,514 Gain on disposal of business (Note (6)) — — 262,677 Others (124,383) (351,266) (139,676) 319,402 921,904 1,247,269 Notes: (1) In 2019, the dividends of other equity instrument investments were mainly RMB98 million from Size Industry Investment Fund (2017: RMB79 million, 2018: RMB109 million). (2) The Group does not apply hedge accounting for these futures, forward and option contracts. (3) During the year, the transactions contributed to the gain on disposal of electrolytic aluminum capacity quota and property, plant and equipment mainly include the following: (a) Pursuant to the agreement entered into between Shanxi Huasheng Co., Ltd. (“Shanxi Huasheng”) and Yixin Aluminum on May 28, 2019, the electrolytic aluminum capacity quota of 170,000 tonnes was transferred from Shanxi Huasheng to Yixin Aluminum. A gain of RMB800 million from disposal of the aluminum capacity quota was recorded by the Group in the current period. The transfer constitutes a related party transaction which was disclosed in Note 35 (a). (b) The fixed assets related to the electrolytic aluminum production line of Guizhou Branch have been disposed of, and the Company recognized the disposal loss of RMB541 million from the difference between the transfer price and carrying amount of the assets. (4) As disclosed in Note 8 (b), the Group recognized a gain of RMB204 million and a gain of RMB91 million on barging purchase of associates Yunnan Aluminum and Yixin Aluminum, respectively. (5) In March 2019, Ningxia Energy transferred, through an auction transaction, its 50% equity interest in Ningxia Zhongning Power Co., Ltd. to Ningxia Tianyuan Manganese Industry Group Co., Ltd. A gain of RMB159 million from disposal of investment in a joint venture was recorded by the Group in the current year. (6) The Company used gallium metal business to increase its investment to an associate China Rare Earth Co., Ltd. (“China Rare Earth”), and recognized a gain of RMB263 million. |
FINANCE INCOME_FINANCE COSTS (T
FINANCE INCOME/FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FINANCE INCOME/FINANCE COSTS | |
Schedule of analysis of finance income/finance costs | Finance income - interest income (706,690) (492,234) (261,151) Interest expense 5,175,154 5,202,639 4,665,329 Less: interest expense capitalized in property, plant and equipment (Note 6) (344,452) (517,589) (289,499) Interest expense, net of capitalized interest 4,830,702 4,685,050 4,375,830 Interest on lease liabilities — — 487,249 Amortization of unrecognized finance expenses 241,099 205,335 60,415 Exchange (gain)/loss, net 131,621 (7,889) (2,315) Finance costs 5,203,422 4,882,496 4,921,179 Capitalization rate during the year (Note 6) 4.41% to 8.00% 4.54% to 7.00% 4.00% to 6.96% |
EMPLOYEE BENEFIT EXPENSES (Tabl
EMPLOYEE BENEFIT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT EXPENSES | |
Schedule of analysis of employee benefit expenses | Salaries and bonus 4,205,361 4,636,972 4,939,758 Housing fund 395,489 414,440 488,574 Staff welfare and other expenses * 1,576,552 1,896,365 2,035,931 Employment expense in relation to early retirement schemes (Note 21) 767,632 447,660 210,428 Employment expenses in relation to termination benefit 30,247 37,590 98,479 6,975,281 7,433,027 7,773,170 * Staff welfare and other expenses include staff welfare, staff union expenses, staff education expenses, unemployment insurance expenses, pension insurance expenses, etc. |
DIRECTORS' AND SUPERVISORS' R_2
DIRECTORS' AND SUPERVISORS' REMUNERATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant related party transactions | |
Schedule of directors' and supervisors' remuneration | Fees 768 756 780 Basic salaries, housing fund, other allowances and benefits in kind 1,370 1,849 4,665 Pension cost 166 234 513 2,304 2,839 5,958 |
Schedule of remuneration of each director and supervisor | The remuneration of each director and supervisor of the Company for the year ended December 31, 2017 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Yu Dehui — — — — — Lu Dongliang — — — — — Jiang Yinggang — 822 — 83 905 — 822 — 83 905 Non-executive Directors: Ao Hong — — — — — Liu Caiming — — — — — Wang Jun 150 — — — 150 Chen Lijie 206 — — — 206 Lie-A-Cheong Tai-Chong, David 206 — — — 206 Hu Shihai 206 — — — 206 768 — — — 768 Supervisors: Liu Xiangmin — — — — — Wang Jun — — — — — Wu Zuoming — 548 — 83 631 — 548 — 83 631 Total 768 1,370 — 166 2,304 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 Dehui (Note (i)) — — — — — Lu Dongliang (Note (i)) — — — — — Jiang Yinggang — 762 — 90 852 Zhu Runzhou — 438 — 54 492 — 1,200 — 144 1,344 Non-executive Directors: Ao Hong — — — — — Liu Caiming — — — — — Wang Jun 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 — 649 — 90 739 Total 756 1,849 — 234 2,839 The remuneration of each director and supervisor of the Company for the year ended December 31, 2019 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Yu Dehui (Note (i)) — — — — — Lu Dongliang (Note (i)) — — — — — He Zhihui — 885 — 73 958 Zhu Runzhou — 833 — 88 921 Jiang Yinggang — 889 — 88 977 — 2,607 — 249 2,856 Non-executive Directors: Ao Hong — — — — — Wang Jun (Note (ii)) 150 — — — 150 Chen Lijie 210 — — — 210 Lie-A-Cheong Tai-Chong, David 210 — — — 210 Hu Shihai 210 — — — 210 780 — — — 780 Supervisors: Ye Guohua (Note (iii)) — — — — — Ou Xiaowu (Note (iii)) — — — — — Shan Shulan (Note (iii)) — — — — — Guan Xiaoguang (Note (iii)) — 710 — 88 798 Yue Xuguang (Note (iii)) — 770 — 88 858 Wu Zuoming — 578 — 88 666 — 2,058 — 264 2,322 Total 780 4,665 — 513 5,958 Note: (i) On February 21, 2019, Mr. Yu Dehui resigned as the chairman and an executive Director of the Company, and Mr. Lu Dongliang was elected as the chairman of the sixth session of the Board of the Company at the 39th meeting of the sixth session of the Board. (ii) On February 20, 2019, the appointment of Mr. Wang Jun as the chief financial officer and the Secretary to the Board (Company Secretary) of the Company was approved at the 38th meeting of the sixth session of the Board of the Company. (iii) On June 25, 2019, Mr. Ye Guohua was elected as the chairman of the seventh session of the Supervisory Committee of the Company at the first meeting of the seventh session of the Supervisory Committee of the Company. On June 25, 2019, Ms. Shan Shulan were elected as the shareholder representative Supervisors of the seventh session of the Supervisory Committee of the Company at the 2018 annual general meeting of the Company. On June 25, 2019, Mr. Guan Xiaoguang was elected as an employee representative Supervisor of the seventh session of the Supervisory Committee of the Company at the employees’ representatives meeting of the Company. On December 10, 2019, Mr. Ou Xiaowu, nominated by Chinalco, the controlling shareholder of the Company on October 24, 2019, was elected as a shareholder representative Supervisor of the seventh session of the Supervisory Committee of the Company at the 2019 third extraordinary general meeting of the Company. On December 10, 2019, Mr. Yue Xuguang was elected as an employee representative Supervisor of the seventh session of the Supervisory Committee of the Company at the employees’ representatives meeting of the Company. |
Schedule of remuneration payable to the remaining two highest paid individuals | Basic salaries, housing fund, other allowances and benefits in kind 2,460 1,305 1,670 Discretionary bonuses — — — Pension costs 249 165 137 2,709 1,470 1,807 |
Schedule of remuneration of the directors and supervisors of the Company whose remuneration fell within the following band | Number of individuals Nil to RMB1,000,000 15 12 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 individuals Nil to RMB1,000,000 3 2 2 |
INCOME TAX EXPENSE (Tables)
INCOME TAX EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX EXPENSE | |
Schedule of income tax expense | Current income tax expense 844,896 755,264 720,405 Deferred tax (benefit)/expense (201,190) 67,255 (94,685) 643,706 822,519 625,720 |
Schedule of reconciliation of the tax expense applicable to profit before tax at the statutory rates | Profit before income tax 3,049,175 2,264,514 2,113,801 Tax expense calculated at the statutory tax rate of 25% (2017 and 2018: 25%) 762,294 566,129 528,450 Tax effects of: Preferential income tax rates applicable to certain branches and subsidiaries (287,081) (268,665) (464,880) Impact of change in income tax rate 98,150 23,425 4,594 Tax losses with no deferred tax assets recognized 296,728 434,103 588,267 Deductible temporary differences with no deferred tax assets recognized 308,657 384,072 41,695 Utilization of previously unrecognized tax losses and deductible temporary differences (212,309) (52,962) (17,952) Tax incentive in relation to deduction of certain expenses (43,846) (62,172) (50,921) Non-taxable income (126,101) (254,337) (173,686) Expenses not deductible for tax purposes 49,564 54,959 56,448 Write-off of unrecoverable deferred tax assets previously recognized 49,808 183,195 187,433 Profits and losses attributable to joint ventures and associates — 40,029 (79,720) Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized (274,726) (233,940) (3,868) Adjustments in respect of current tax of previous periods 22,568 8,683 9,860 Income tax expense 643,706 822,519 625,720 Effective tax rate 21 % 36 % 30 % |
EARNINGS PER SHARE ATTRIBUTAB_2
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT | |
Schedule of basic earnings per share | Profit attributable to ordinary equity holders of the parent (RMB) 1,413,221 707,460 850,999 Other equity instruments’ distribution reserved (RMB) (110,000) (129,282) (219,249) 1,303,221 578,178 631,750 Weighted average number of ordinary shares in issue 14,903,798,236 14,903,798,236 14,903,798,236 Effect of equity exchange arrangement — 1,938,915,502 — Issuance of share capital* (Note 16) — — 2,118,874,715 14,903,798,236 16,842,713,738 17,022,672,951 Basic and diluted earnings per share (RMB) 0.087 0.034 0.037 * The Group had no potentially dilutive ordinary shares in issue during the years ended December 31, 2019, 2018 and 2017. |
NOTES TO THE CONSOLIDATED STA_2
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | |
Schedule of cash flows generated from operating activities | Notes Cash flows generated from operating activities Profit before income tax 3,049,175 2,264,514 2,113,801 Adjustments for: Share of profits and losses of joint ventures 8(a) (8,151) 199,452 (270,115) Share of profits and losses of associates 8(b) 165,249 (39,335) (48,767) Depreciation of property, plant and equipment 6 6,554,842 7,499,322 7,094,716 Depreciation of investment properties 7 14,105 22,229 26,559 Depreciation of right-of-use assets 19 — — 1,075,825 Gain on disposal of other property, plant and equipment and land use rights, net 27 (76,739) (101,098) (242,960) Impairment losses on property, plant and equipment 6 16,200 46,484 259,354 Impairment losses of intangible assets 5 8,134 — 1,448 Amortization of intangible assets 5 275,877 295,901 338,938 Amortization of land use rights 19 91,579 108,152 — Amortization of prepaid expenses included in other non-current assets 127,793 130,148 254,205 Realized and unrealized losses/(gains) on futures, option and forward contracts 27 155,024 (141,459) (50,820) Gain on previously held equity interest remeasured at acquisition-date fair value 27 (117,640) (748,086) — Gain on disposals and deemed disposals of subsidiaries 27 (325,022) (3,517) (261,187) Loss/(gains) on disposal of investments in associates 27 — 1,904 (159,514) Gain on disposal of business 27 — — (262,677) Gain on share of associates’ net assets 27 — — (295,288) Gain on disposal of and dividends from equity investments 27 (79,408) (109,914) (97,775) Receipt of government subsidies (202,359) (158,109) (112,141) Interest income (183,036) — — Finance costs 28 5,204,337 4,882,496 4,921,179 Change in special reserve 58,743 6,605 (23,085) Others (16,951) 75,381 (11,555) 14,711,752 14,231,070 14,250,141 Changes in working capital: Decrease/(increase) in inventories (2,662,507) 1,194,454 929,027 Increase in trade and notes receivables (1,963,178) (2,473,006) (1,050,860) Decrease in other current assets 1,275,535 916,681 (360,639) (Increase)/decrease in restricted cash (137,745) 530,284 859,507 (Increase)/decrease in other non-current assets (422,845) 425,739 547,287 (Decrease)/increase in trade and notes payables 1,600,975 (5,559) (1,385,081) Increase/(decrease) in other payables and accrued liabilities 1,672,658 (945,270) (560,914) Increase in other non-current liabilities 81,878 105,386 (206,354) Cash generated from operations 14,156,523 13,979,779 13,022,114 PRC corporate income taxes paid (949,383) (947,703) (548,625) Net cash generated from operating activities 13,207,140 13,032,076 12,473,489 Non-cash transactions of investing activities and financing activities Capital injection to an associate and joint ventures by non-cash assets 186,450 — — Equity exchange arrangement — 10,735,214 — Investment in a joint venture used gallium business — — 352,848 Non-controlling shareholders forfeited sharing of profit or equity interest — — 149,322 Endorsement of notes receivables accepted from the sale of goods or services for purchase of property, plant and equipment 2,384,046 1,504,162 Acquisition of equity investments designated at fair value through other comprehensive income by exchanging equity in a subsidiary — — 350,911 Acquisition of businesses at non-cash consideration 50,058 70,087 — Finance lease 44,342 113,601 — |
Schedule of reconciliation of liabilities arising from financing activities | Financial liabilities Financial included in liabilities Financial other current included in liabilities at fair payables and other non- Interest bearing value through Trade and accrued current loans and profit or loss notes payables expenses liabilities borrowings Total As at January 1, 2018 89,426 12,360,441 11,363,236 769,061 103,270,773 127,852,937 Net cash generated from operating activities — (3,996) (624,504) — — (628,500) Net cash flows from/(used in) investing activities (87,660) 1,646,299 (193,345) — 7,263,251 8,628,545 Payment of upfront interest of gold leasing arrangement — — — — 2,323,105 2,323,105 Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — — — — 13,185,034 13,185,034 Repayments of medium-term notes and short-term bonds — — — — (21,815,000) (21,815,000) Repayments of gold leasing arrangement — — — — (7,519,283) (7,519,283) Drawdown of short-term and long-term bank and other loans — — — — 76,899,591 76,899,591 Repayments of short-term and long-term bank and other loans — — (1,000,000) — (69,560,667) (70,560,667) Proceeds from finance lease, net of deposit and transaction costs — — — — 1,204,843 1,204,843 Capital elements of finance lease rental payment — — — — (3,915,404) (3,915,404) Dividends paid by subsidiaries to non-controlling shareholders — — 277,771 — — 277,771 Amortization of unrecognized finance expenses and interest expense — — — 6,090 521,295 527,385 Interest paid — — (460,147) (24,736) (85,578) (570,461) Reclassification — — (90,644) 90,644 — — Net cash (used in)/ generated from financing activities — — (1,273,020) 71,998 (8,762,064) (9,963,086) Net foreign exchange differences — 6,520 14,095 — 916 21,531 As at December 31, 2018 1,766 14,009,264 9,286,462 841,059 101,772,876 125,911,427 Financial liabilities Financial included in liabilities Financial other current included in liabilities at fair payables and other non- Interest bearing value through Trade and accrued current loans and profit or loss notes payables expenses liabilities borrowings Total As at January 1, 2019 1,766 14,009,264 9,286,462 841,059 101,772,876 125,911,427 Net cash generated from operating activities — (1,385,080) 470,478 — — (914,602) Net cash flows from/(used in) investing activities (961) (41,607) 622,995 474,548 7,157,695 8,212,670 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 — — — — 37,965,385 37,965,385 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 and other loans — — — — 40,669,197 40,669,197 Repayments of short-term and long-term bank and other loans — — — — (66,105,388) (66,105,388) Principal portion of lease payment — — — — (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 cash (used in)/ generated from financing activities — — 373,715 (162,120) (7,431,725) (7,220,130) Net foreign exchange differences — 2,178 10,408 31,321 43,907 As at December 31, 2019 805 12,584,755 10,764,058 1,153,487 101,530,167 126,033,272 |
Schedule of total cash outflow for leases | Within operating activities 65,426 Within financing activities 3,032,106 3,097,532 |
SIGNIFICANT RELATED PARTY BAL_2
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS | |
Summary of significant related party transactions | Note Sales of goods and services rendered: Sales of materials and finished goods to: (i) Chinalco and its subsidiaries (ix) 10,658,507 11,248,625 13,612,817 Associates of Chinalco 682,992 897,642 514,414 Joint ventures 2,031,159 4,462,670 5,676,548 Associates 724,658 2,626,780 3,812,565 14,097,316 19,235,717 23,616,344 Provision of engineering, construction and supervisory services to: (iii) Chinalco and its subsidiaries (ix) 77,095 5,981 — Joint ventures 2,046 — — Associates — 1,725 — 79,141 7,706 — Provision of utility services to: (ii) Chinalco and its subsidiaries (ix) 581,566 620,552 687,290 Associates of Chinalco 8,776 15,719 4,062 Joint ventures 118,280 186,672 263,436 Associates 1,122 24,309 35,650 709,744 847,252 990,438 Rental revenue of land use rights and buildings from: (vi) Chinalco and its subsidiaries (ix) 40,875 31,551 52,571 Associates of Chinalco — — 65 Joint ventures 426 1,545 1,967 Associates — 1,511 775 41,301 34,607 55,378 Purchases of goods and services: Purchases of engineering, construction and supervisory services from: (iii) Chinalco and its subsidiaries (ix) 1,071,283 2,088,338 2,949,866 Joint ventures — 2,100 69,332 Associates 134,072 405,993 218,616 1,205,355 2,496,431 3,237,814 Purchases of key and auxiliary materials, equipment and finished goods from: (iv) Chinalco and its subsidiaries (ix) 3,850,073 3,513,420 8,161,223 Associates of Chinalco — 18,917 18 Joint ventures 6,516,087 8,182,251 2,647,234 Associates 1,175 2,108,072 1,893,449 10,367,335 13,822,660 12,701,924 Provision of social services and logistics services by: (v) Chinalco and its subsidiaries (ix) 326,830 312,062 309,180 Provision of utility services by: (ii) Chinalco and its subsidiaries (ix) 1,412,722 992,827 763,812 Associates of Chinalco — 96,510 100,835 Joint ventures 19,537 26,269 280,523 Associates — 77,432 8,326 1,432,259 1,193,038 1,153,496 Notes Purchases of goods and services: (continued) Provision of other services by: (vii) A joint venture 269,204 226,280 272,220 Rental expenses /lease liabilities payments for buildings and land use rights charged by: (vi) Chinalco and its subsidiaries (ix) 509,848 501,866 499,191 Other significant related party transactions: Borrowing from a subsidiary of Chinalco (viii), (ix) 4,010,000 6,525,000 3,890,000 Interest expense on borrowings, discounted notes and factoring arrangement from subsidiaries of Chinalco 225,934 143,415 141,991 Entrusted loans and other borrowings to: Joint ventures 500,000 — — Associates 1,100,000 — — 1,600,000 — — Interest income on entrusted loans and other borrowings: Joint ventures 41,005 — — An associate 24,425 — — 65,430 — — Interest income from the unpaid disposal proceeds from: Chinalco and its subsidiaries 117,587 — — Consideration to acquire the shares in the subsidiaries of Chinalco (xiv) Investment to Yunnan Aluminum — — 1,287,608 Investment to Yixin Aluminum — — 850,000 — — 2,137,608 Disposal of electronic aluminium capacity quota to a subsidiary of Chinalco (xiii) — — 800,000 Disposal of assets under a sale and leaseback contract to a subsidiary of Chinalco (xi) 600,000 224,000 500,000 Finance lease under a sale and leaseback contract from a subsidiary of Chinalco (xi), (ix) 600,036 224,000 558,924 Trade receivable factoring arrangement from a subsidiary of Chinalco (ix) 1,570,000 470,101 136,656 Discounted notes receivable to a subsidiary of Chinalco (viii) 523,253 756,000 679,517 Provision of financial guarantees to: A joint venture (x) 18,350 12,450 12,450 Financial guarantees provided by: Subsidiaries of Chinalco 4,000 — — 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 summarized 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 key 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 Rights 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 rent 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 13A of the Listing Rules. (x) In December 2006, Ningxia Energy, a subsidiary of the Company, entered into a financial guarantee contract with China Construction Bank providing a financial guarantee to Tian Jing Shen Zhou Wind Power Co., Ltd, a joint venture of the Company, for its 14-year bank loan amounting to RMB35 million. As at December 31, 2019, the outstanding amount of the guarantee was RMB6 million. (xi) As disclosed in Note 20, the Group has entered into several sales and leaseback contracts with Chalco Financial Leasing Co., Ltd.. (xii) As disclosed in Note 38, the Group acquired a 100% equity interest in Suzhou Zhongcai from Zhongse Technology and Suzhou Research Institute, which constituted a related party transaction. (xiii) As disclosed in Note 27, in May 2019, the Group entered into transactions with its fellow subsidiaries including the disposals of subsidiaries and disposal of electronic Aluminum capacity quota. These transactions constituted related party transactions. (xiv) As disclosed in Note 8 (b), the Company completed the acquisitions of equity interests in Yunnan Aluminum and Yixin Aluminum, respectively. These transactions constituted related party transactions. |
Summary of outstanding balances with related entities | December 31, 2018 December 31, 2019 Cash and cash equivalents deposited with A subsidiary of Chinalco * 9,101,541 3,285,093 Trade and notes receivables Chinalco and its subsidiaries 1,281,395 1,054,168 Associates of Chinalco 18,655 6,034 Joint ventures 819,878 788,183 Associates 6,615 25 2,126,543 1,848,410 Provision for impairment of receivables (77,657) (17,815) 2,048,886 1,830,595 * 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 and October 26, 2017, the Company renewed the financial service agreement with Chinalco Finance with a validation term of three years ending on October 26, 2020. December 31, December 31, Other current assets Chinalco and its subsidiaries 830,615 482,195 Joint ventures 1,424,678 1,503,505 Associates 29,701 47,743 2,284,994 2,033,443 Provision for impairment of other current assets (40,830) (30,509) 2,244,164 2,002,934 Other non-current assets Associates 111,845 111,845 Interest-bearing loans and borrowings Subsidiaries of Chinalco (including lease liabilities) 4,373,033 9,857,187 Trade and notes payables Chinalco and its subsidiaries 404,278 334,840 Joint ventures 631,570 527,744 Associates 13,033 9,789 Associates of Chinalco 4,012 917 1,052,893 873,290 December 31, December 31, Other payables and accrued liabilities Chinalco and its subsidiaries 1,930,947 1,810,514 Associates of Chinalco 17,128 17,056 Associates 148,978 80,012 Joint ventures 8,860 73,823 2,105,913 1,981,405 December 31, December 31, Contract Liabilities Chinalco and its subsidiaries 22,307 29,210 Associates of Chinalco 20 — Associates 12,451 223 Joint ventures 94,367 56,010 129,145 85,443 |
Summary of compensation of key management personnel | Fees 768 756 780 Basic salaries, housing fund, other allowances and benefits in kind 3,830 3,953 6,945 Pension costs 415 482 715 5,013 5,191 8,440 |
FINANCIAL AND CAPITAL RISK MA_2
FINANCIAL AND CAPITAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of carrying amounts of each of the categories of financial instruments of the Group | Financial assets December 31, 2018 Financial assets at fair value Equity through profit or investments loss designated at Designated as fair value such upon Financial through other initial Held for assets at comprehensive recognition trading amortized cost income Total Current Trade and notes receivables — — 8,104,017 — 8,104,017 Financial assets at fair value through profit or loss — 16,141 — — 16,141 Restricted cash and time deposits — — 2,165, 288 2,165, 288 Cash and cash equivalents — — 19,130,835 — 19,130,835 Financial assets included in other current assets — — 4,875,530 — 4,875,530 Subtotal — 16,141 34,275,670 — 34,291,811 Non-current Equity investments designated at fair value through other comprehensive income — — — 1,729,825 1,729,825 Other non-current assets — — 204,718 — 204,718 Subtotal — — 204,718 1,729,825 1,934,543 Total — 16,141 34,480,388 1,729,825 36,226,354 Financial liabilities December 31, 2018 Financial liabilities at fair value through profit or loss Designated as such upon Financial initial Held for liabilities at recognition trading amortized cost Total Current Financial liabilities at fair value through profit or loss — 1,766 — 1,766 Interest-bearing loans and borrowings — — 47,565,490 47,565,490 Financial liabilities included in other payables and accrued liabilities (Note 22) — — 9,286,462 9,286,462 Trade and notes payables — — 14,009,264 14,009,264 Subtotal — 1,766 70,861,216 70,862,982 Non-current Financial liabilities included in other non-current liabilities (Note 21) — — 841,059 841,059 Interest-bearing loans and borrowings — — 54,207,386 54,207,386 Subtotal — — 55,048,445 55,048,445 Total — 1,766 125,909,661 125,911,427 Financial assets December 31, 2019 Financial assets at fair Equity Debt value through profit or investments instruments loss designated at at fair value Designated as fair value through such upon Financial through other other initial Held for assets at comprehensive comprehensive recognition trading amortized cost income income Total Current Trade receivables — — 4,559,112 — — 4,559,112 Notes receivable — — — — 2,834,011 2,834,011 Financial assets at fair value through profit or loss* — 3,503,175 — — — 3,503,175 Restricted cash and time deposits — — 1,305,781 — — 1,305,781 Cash and cash equivalents — — 7,759,190 — — 7,759,190 Financial assets included in other current assets — — 5,723,924 — — 5,723,924 Subtotal — 3,503,175 19,348,007 — 2,834,011 25,685,193 Non-current Equity investments designated at fair value through other comprehensive income — — — 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 19,476,680 2,239,251 2,834,011 28,053,117 * Financial assets measured at fair value through profit or loss are mainly wealth management products, denominated in RMB, with expected rates of return depending on the interest rates and yield curves observable at commonly quoted intervals. The fair value approximates to the carrying amount of the financial assets measured at fair value through profit or loss. Financial liabilities December 31, 2019 Financial liabilities at fair value through profit or loss Designated as such upon Financial initial Held for liabilities at recognition 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 Financial liabilities included in other payables and accrued liabilities (Note 22) — — 10,782,998 10,782,998 Trade and notes payables — — 12,584,755 12,584,755 Subtotal — 805 65,654,357 65,655,162 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 — 805 126,051,407 126,052,212 |
Schedule of increase (decrease) due to commodity price risk impact on profit | Year ended December 31, 2018 Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables* — — — 5,209,535 5,209,535 Financial assets in other current assets 1,098,455 3,655,638 121,432 — 4,875,525 Restricted cash 2,165,288 — — — 2,165,288 Notes receivable 2,894,482 — — — 2,894,482 Cash and cash equivalents 19,130,835 — — — 19,130,835 Financial assets in other non-current assets 204,718 — — — 204,718 Financial guarantees -not yet past due 12,450 — — — 12,450 Total 25,506,228 3,655,638 121,432 5,209,535 34,492,833 Year ended December 31, 2019 Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables* — — — 4,559,112 4,559,112 Financial assets in other current assets 1,632,766 3,970,620 120,538 — 5,723,924 Restricted cash 1,305,781 — — — 1,305,781 Notes receivable 2,834,011 — — — 2,834,011 Cash and cash equivalents 7,759,190 — — — 7,759,190 Financial assets in other non-current assets 128,673 — — — 128,673 Financial guarantees-not yet past due 5,772 — — — 5,772 Total 13,666,193 3,970,620 120,538 4,559,112 22,316,463 |
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 11) 204,718 128,673 182,132 111,935 204,718 128,673 182,132 111,935 Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial liabilities Financial liabilities included in other non-current liabilities (Note 21) 841,059 1,153,487 816,529 1,146,893 Long-term interest-bearing loans and borrowings, excluding lease liability (Note 18) 54,207,386 52,232,955 53,207,052 50,952,676 55,048,445 53,386,442 54,023,581 52,099,569 |
Schedule of fair value measurement hierarchy | Assets measured at fair value As at December 31, 2018 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 16,141 — — 16,141 Equity investments designated at fair value through other comprehensive income: Listed equity investments 6,441 — — 6,441 Other unlisted investment — — 1,723,384 1,723,384 22,582 — 1,723,384 1,745,966 As at 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 assets at fair value through profit or loss: Futures contracts 3,175 — — 3,175 Financial product — 3,500,000 — 3,500,000 Debt instruments at fair value through other comprehensive income - notes receivable — 2,834,011 — 2,834,011 Equity investments designated at fair value through other comprehensive income: Listed equity investments 8,853 — — 8,853 Other unlisted investment — — 2,230,398 2,230,398 12,028 6,334,011 2,230,398 8,576,437 Liabilities measured at fair value As at December 31, 2018 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 1,766 — — 1,766 1,766 — — 1,766 As at 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 at December 31, 2018 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 — 182,132 — 182,132 As at 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 at December 31, 2018 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 — 816,529 — 816,529 Long-term interest-bearing loans and borrowings — 53,207,052 — 53,207,052 — 54,023,581 — 54,023,581 As at 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 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 Range Equity investments in Size Industry Investment Fund December 31, 2019 Net Assets Method Net Assets 5,000,000 December 31, 2018 Net Assets Method Net Assets 5,000,000 Chinalco Innovative December 31, 2019 Net Assets Method Net Assets |
Schedule of the gearing ratio | December 31, December 31, Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) 131,054,499 130,170,395 Less: Restricted cash, time deposits and cash and cash equivalents (21,296,123) (9,064,971) Net debt 109,758,376 121,105,424 Total equity 67,669,619 70,725,060 Add: net debt 109,758,376 121,105,424 Less: non-controlling interests (15,254,312) (16,065,427) Total capital attributable to owners of the parent 162,173,683 175,765,057 Gearing ratio 68 % 69 % |
Commodity price risk | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of if the futures prices had increased/decreased | 2018 2019 Primary aluminum Decrease/increase Decrease/increase Copper Increase/decrease Increase/decrease Zinc Decrease/increase Decrease/increase Coal Decrease/increase RMB2.7 million Decrease/increase |
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 at December 31, 2018 Finance lease payables, including current portion 2,518,653 1,161,490 707,716 13,238 4,401,097 Long-term bank and other loans, including current portion 3,384,400 7,377,956 16,593,587 18,784,797 46,140,740 Medium-term notes and bonds, including current portion 400,000 — 9,785,840 — 10,185,840 Short-term bonds 500,000 — — — 500,000 Gold leasing arrangement 1,607,905 — — — 1,607,905 Short-term bank and other loans 39,348,100 — — — 39,348,100 Interest payables for borrowings 4,848,968 2,602,751 4,197,364 898,786 12,547,869 Financial liabilities at fair value through profit or loss 1,766 — — — 1,766 Financial liabilities included in other payables and accrued liabilities, excluding accrued interest 8,890,176 — — — 8,890,176 Financial liabilities included in other non-current liabilities (Note) — 108,896 333,354 420,258 862,508 Trade and notes payables 14,009,264 — — — 14,009,264 75,509,232 11,251,093 31,617,861 20,117,079 138,495,265 Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total As at December 31, 2019 Lease liabilities, 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 loans and 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 in other payables and accrued liabilities, excluding accrued interest 10,288,657 — — — 10,288,657 Financial liabilities included in other non-current liabilities (Note) — 176,232 182,006 857,647 1,215,885 Trade and notes payables 12,584,755 — — — 12,584,755 70,359,788 18,383,640 24,394,907 31,024,228 144,162,563 Note : As disclosed in Note 21, as at December 31, 2019, the carrying value of financial liabilities included in other non-current liabilities was RMB1,153 million (December 31, 2018: RMB841 million). |
PARTLY-OWNED SUBSIDIARIES WIT_2
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Schedule of Group's subsidiaries that have material non-controlling interests | Percentage of equity interest held by non-controlling interests Ningxia Energy 29.18 % 29.18 % Shanxi Zhongrun 60.00 % 56.61 % Guizhou Huaren 60.00 % 60.00 % Profit for the year allocated to non-controlling interests Ningxia Energy 214,479 240,504 Shanxi Zhongrun 291,009 69,701 Guizhou Huaren 20,783 198,016 Dividends distributed to non-controlling interests Ningxia Energy 351,979 76,469 Shanxi Zhongrun 200,000 — Guizhou Huaren — — Accumulated balances of non-controlling interests at the Year ended Ningxia Energy 4,757,014 4,978,089 Shanxi Zhongrun 782,176 996,686 Guizhou Huaren 1,028,426 |
Ningxia Energy | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | 2018 Ningxia Energy Revenue 6,714,040 Total expenses 6,555,933 Profit for the year 158,107 Total comprehensive income for the year 158,107 Current assets 5,036,413 Non-current assets 32,677,977 Current liabilities 8,723,922 Non-current liabilities 18,367,979 Net cash flows from operating activities 2,755,612 Net cash flows used in investing activities (1,616,513) Net cash flows from financing activities (991,998) Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 147,101 2019 Ningxia Energy Revenue 6,695,724 Total expenses 6,314,098 Profit for the year 381,626 Total comprehensive income for the year 381,626 Current assets 5,081,743 Non-current assets 32,133,495 Current liabilities 8,688,475 Non-current liabilities 17,559,995 Net cash flows from operating activities 3,274,683 Net cash flows used in investing activities (939,054) Net cash flows from financing activities (2,611,597) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (275,968) |
Shanxi Zhongrun | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | 2018 Shanxi Zhongrun Revenue 645,413 Total expenses 644,596 Profit for the year 817 Total comprehensive income for the year 817 Current assets 605,140 Non-current assets 3,421,608 Current liabilities 790,819 Non-current liabilities 2,258,089 Net cash flows from operating activities (19,718) Net cash flows used in investing activities (781,869) Net cash flows from/financing activities (1,335,579) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (2,137,166) 2019 Shanxi Zhongrun Revenue 2,204,777 Total expenses 2,081,652 Profit for the year 123,125 Total comprehensive income for the year 123,125 Current assets 783,726 Non-current assets 4,010,818 Current liabilities 1,084,890 Non-current liabilities 2,093,735 Net cash flows from operating activities 234,014 Net cash flows used in investing activities (402,636) Net cash flows from financing activities 307,452 Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 138,830 |
Guizhou Huaren | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | 2018 Guizhou Huaren Revenue 4,282,882 Total expenses 4,248,243 Profit for the year 34,639 Total comprehensive income for the year 34,639 Current assets 1,169,453 Non-current assets 3,038,875 Current liabilities 1,381,541 Non-current liabilities 1,458,995 Net cash flows from operating activities 134,781 Net cash flows used in investing activities (510,243) Net cash flows from/financing activities (115,222) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (490,684) Guizhou 2019 Huaren Revenue 5,982,665 Total expenses 5,677,075 Profit for the year 305,590 Total comprehensive income for the year 305,590 Current assets 1,034,442 Non-current assets 2,650,822 Current liabilities 1,164,346 Non-current liabilities 1,006,360 Net cash flows from operating activities 565,027 Net cash flows used in investing activities (91,319) Net cash flows from financing activities (354,187) Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 119,521 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Qingdao Light Metal | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, December 29, Assets Investment properties 10,742 10,425 Property, plant and equipment 290,579 278,309 Land use rights 20,722 20,195 Inventories 29,446 49,489 Other current assets 2,934 3,978 Trade and notes receivables 29,748 98,957 Cash and cash equivalents 5,688 10,924 Liabilities Trade and notes payables 64,900 97,681 Other payables and accrued expenses 10,641 66,042 Interest-bearing loans and borrowings 167,000 167,000 Net assets 147,318 141,554 Other equity instruments 138,670 138,670 8,648 2,884 Difference recognized in equity 158,848 Total purchase consideration 161,732 |
Shanxi Aluminum Sewage Treatment Plant | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, December 28, Assets Property, plant and equipment 52,001 48,995 Liabilities Other payables and accrued expenses — — Net assets 52,001 48,995 Difference recognized in equity — 1,063 Total purchase consideration 50,058 |
Yinxing Power | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | August 31, 2017 Fair value Assets Property, plant and equipment 3,594,970 Land use rights 31,833 Intangible assets 188 Other current assets 312,840 Inventories 35,349 Trade and notes receivables 162,093 Cash and cash equivalents 255,152 Liabilities Deferred tax liabilities (40,706) Interest-bearing loans and borrowings (2,514,800) Other payables and accrued expenses (186,782) Trade and notes payables (800,438) Net assets 849,699 Non-controlling interests 416,353 Net assets acquired 433,346 Goodwill — Satisfied by cash — |
Summary of equity interest acquired before acquisition | August 31, 2017 Initial investment cost 316,200 Investment income recognized under the equity method (494) The book value of the investment in 51% equity of Yinxing Power on the merger date 315,706 The fair value of the investment in 51% equity of Yinxing Power on the merger date (Note) 433,346 Gain on previously held equity interest remeasured at acquisition-date fair value 117,640 |
Summary of analysis of cash flows in respect of acquisition | RMB’000 Cash consideration — Cash and bank balances acquired 255,152 Net inflow of cash and cash equivalents included in cash flows from investing activities 255,152 |
Schedule of operating results and cash flows since the merger date to the end of the year | RMB’000 Revenue 578,117 Profit for the period 96,756 Net cash flows 36,024 |
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 Intangible assets 137 Land use rights 109,320 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 out 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 Note: The fair value was determined by the valuation report issued by an independent qualified valuer. |
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 | 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 out 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 Note: The fair value was determined by the valuation report issued by an independent qualified valuer. |
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 outflow 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 out flows (434) |
Shandong Aluminum Carbon Plant | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, August 31, 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, August 30, 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 |
Red Cliff Carbon | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, August 30, 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 |
East Light Logistics | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, September 17, 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 BUSINESSES (Tables)
DISPOSAL OF BUSINESSES (Tables) - Shandong Engineering | 12 Months Ended |
Dec. 31, 2019 | |
DISPOSAL OF BUSINESSES | |
Schedule of the details of the net assets disposed of | Date of disposal Net assets disposed of: Property, plant and equipment 109,103 Intangible assets 428 Deferred tax assets 3,106 Inventories 167,499 Trade receivables and notes receivable 1,067,636 Other current assets 23,136 Cash and cash equivalents 123,530 Other non-current liabilities (4,637) Other payables and accrued liabilities (282,232) Trade and notes payables (727,622) Interest-bearing loans and borrowings (130,000) Net assets 349,947 Non-controlling interests 3,961 Total net assets 345,986 Gain on disposal of Shandong Engineering 254,659 The fair value of the remaining equity interest in Shandong Engineering 240,258 Consideration 360,387 Satisfied by: Cash 387 Notes receivable 360,000 |
Schedule of analysis of the cash flow of cash and cash equivalents in respect of the Disposal | Date of disposal Cash consideration received 387 Cash and bank balances disposed of (123,530) Net outflows of cash and cash equivalents in respect of disposal of Shandong Engineering (123,143) |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS | |
Schedule of capital commitments on property, plant and equipment | December 31, December 31, Contracted, but not provided for 3,942,933 4,041,857 |
Schedule of operating lease commitments | December 31, Within one year 541,541 In the second to fifth years, inclusive 1,880,058 After five years 10,567,925 12,989,524 |
Schedule of commitments to make capital contributions to the Group's joint ventures and associates | December 31, December 31, Associates 82,800 33,800 Joint ventures 460,000 410,000 542,800 443,800 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019HKD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | |
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% | |
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) | 43.39% | 43.39% | |
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% |
China Aluminum International Trading Group Co. Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,030,000 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% | |
Chalco Materials Co. Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,000,000 | ||
Ownership interest in subsidiary (in percent) | 100.00% | 100.00% |
BASIS OF PREPARATION AND SIGN_4
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Basis of preparation (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||
Current assets (liabilities) | $ (2,938,317) | ¥ (20,455,976) | ¥ (15,935,314) |
Unutilized banking facilities | 118,084,000 | ||
Unutilized banking facilities subject to renewal | 108,360,000 | ||
Unutilized banking facilities, renewal term | 12 months | ||
Amount is recognized in consideration for goodwill | ¥ 0 |
BASIS OF PREPARATION AND SIGN_5
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Impact on transition on adoption of IFRS 16 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Disclosure of initial application of standards or interpretations [line items] | ||||||
Property, plant and equipment | $ 14,842,635 | ¥ 103,331,456 | ¥ 106,249,116 | ¥ 95,731,894 | ||
Right-of-use assets | $ 2,282,518 | 15,890,437 | ||||
Land use right | ||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||
Right-of-use assets | ¥ 11,845,397 | |||||
IFRS 16 | ||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||
Non-current receivables from rental of properties | ¥ 20,000 | |||||
Finance lease liability | ¥ 6,721,000 | |||||
IFRS 16 | Land use right | ||||||
Disclosure of initial application of standards or interpretations [line items] | ||||||
Right-of-use assets | ¥ 4,307,000 |
BASIS OF PREPARATION AND SIGN_6
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Impact arising from adoption of IFRS16 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Disclosure of initial application of standards or interpretations [line items] | |||||
Increase in right-of-use assets | $ 2,282,518 | ¥ 15,890,437 | |||
Property, Plant and equipment | 14,842,635 | 103,331,456 | ¥ 106,249,116 | ¥ 95,731,894 | |
Decrease in land use rights | 4,306,865 | ||||
Other non-current assets | 460,778 | 3,207,843 | 4,442,645 | ||
Total assets | 29,169,276 | 203,070,664 | 200,964,751 | ||
Interest-bearing loans and borrowings | 8,509,805 | 59,243,563 | 54,207,386 | ||
Total liabilities | 19,010,257 | 132,345,604 | 133,295,132 | ||
Retained earnings | (318,444) | (2,216,946) | (2,856,064) | ||
Non-controlling interests | $ 2,307,654 | ¥ 16,065,427 | ¥ 15,254,312 | ||
IFRS 16 | Restatement | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Increase in right-of-use assets | ¥ 17,976,851 | ||||
Property, Plant and equipment | (6,720,610) | ||||
Decrease in land use rights | (4,306,865) | ||||
Other non-current assets | (20,323) | ||||
Total assets | 6,929,053 | ||||
Interest-bearing loans and borrowings | 11,010,323 | ||||
Decrease in finance lease payables | (4,081,270) | ||||
Total liabilities | ¥ 6,929,053 |
BASIS OF PREPARATION AND SIGN_7
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Lease liabilities as at 1 January 2019 to Operating lease commitments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of initial application of standards or interpretations [line items] | |||
Total lease liabilities | ¥ 8,369,262 | ¥ 11,010,323 | |
IFRS 16 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Operating lease commitments as at 31 December 2018 | ¥ 12,989,524 | ||
Less: Commitments relating to short-term leases, low-value assets leases and those leases with a remaining lease term ending on or before 31 December 2019 | 59,819 | ||
Undiscounted Operating lease commitments as at 1 January 2019 under IFRS 16 | ¥ 12,929,705 | ||
Weighted average incremental borrowing rate as at 1 January 2019 | 4.97% | ||
Discounted operating lease commitments as at 1 January 2019 under IFRS 16 | ¥ 6,929,053 | ||
Add: Recognized Finance leases as at 31 December 2018 | 4,081,270 | ||
Total lease liabilities | ¥ 11,010,323 |
BASIS OF PREPARATION AND SIGN_8
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) ¥ in Thousands | Jan. 01, 2019CNY (¥) | Dec. 31, 2019item | Dec. 31, 2018CNY (¥) |
PROPERTY, PLANT AND EQUIPMENT | |||
Impairment loss | ¥ 216,953 | ||
Monthly contributions (as percent of salary) | 17% | 20% | |
Transitional adjustment to accumulated losses upon initial adoption of IFRS 15 | ¥ 0 | ||
Number of performance obligations in contracts with customers | item | 1 | ||
Buildings | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | 50 years | ||
Other intangible assets mainly include profit sharing rights of Maochang mine | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P22Y6M | ||
Minimum | Land use rights | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P40Y | ||
Minimum | Mining rights | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P3Y | ||
Maximum | Land use rights | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P70Y | ||
Maximum | Mining rights | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P30Y | ||
Maximum | Computer software | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P10Y | ||
Buildings | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P8Y | ||
Useful life of right-of-use assets (in years) | P2Y | ||
Buildings | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P45Y | ||
Useful life of right-of-use assets (in years) | P-20Y | ||
Plant and machinery | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P3Y | ||
Useful life of right-of-use assets (in years) | P2Y | ||
Plant and machinery | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P30Y | ||
Useful life of right-of-use assets (in years) | P-10Y | ||
Transportation facilities | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P6Y | ||
Transportation facilities | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P10Y | ||
Office and other equipment | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P3Y | ||
Office and other equipment | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life (in years) | P10Y | ||
Land use rights | Minimum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life of right-of-use assets (in years) | P10Y | ||
Land use rights | Maximum | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Useful life of right-of-use assets (in years) | P-50Y |
SIGNIFICANT ACCOUNTING ESTIMA_2
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (Details) - director | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Yinxing Energy | ||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||
Ownership interest in subsidiary (in percent) | 40.23% | |
Ownership interest held by others (in percent) | 59.77% | |
Guizhou Huaren | ||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||
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 | ||
Voting rights in associate (in percent) | 43.39% | |
Chalco Resources | ||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||
Ownership interest in associate (in percent) | 6.68% | |
Voting rights in associate (in percent) | 20.00% | |
Number of directors can be appointed | 1 | |
Total number of directors | 5 | |
Yunnan Aluminium Co | ||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||
Ownership interest in associate (in percent) | 10.04% | |
Voting rights in associate (in percent) | 20.00% | |
Chinalco Capital | ||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | ||
Voting rights 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% | |
Voting rights in associate (in percent) | 20.00% | |
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% | |
Voting rights in associate (in percent) | 20.00% | |
Number of directors can be appointed | 1 | |
Total number of directors | 7 |
REVENUE AND SEGMENT INFORMATI_3
REVENUE AND SEGMENT INFORMATION - Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenue | ||||
Sales of goods | ¥ 189,569,543 | ¥ 179,785,704 | ¥ 180,706,361 | |
Rendering of services | 186,703 | 215,557 | 163,732 | |
Rental income | 317,915 | 240,153 | 152,543 | |
Total revenue | $ 27,302,445 | ¥ 190,074,161 | ¥ 180,241,414 | ¥ 181,022,636 |
REVENUE AND SEGMENT INFORMATI_4
REVENUE AND SEGMENT INFORMATION - Disaggregated revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregated revenue: | |||
Sales of goods | ¥ 189,569,543 | ¥ 179,785,704 | ¥ 180,706,361 |
Rendering of services | 186,703 | 215,557 | 163,732 |
Total revenue from contracts with customers | 189,756,246 | 180,001,261 | |
Sale of goods | 1,543,164 | 1,277,125 | |
Others | 36,158 | 32,947 | |
Revenue recognised that was included in contract liabilities at the beginning of the reporting period | 1,579,322 | 1,310,072 | |
Transaction price allocated to remaining performance obligations | ¥ 1,764,584 | 1,712,166 | |
Period of remaining performance obligation | 1–10 years | ||
Within 1 Year | |||
Disaggregated revenue: | |||
Transaction price allocated to remaining performance obligations | ¥ 1,638,826 | 1,579,322 | |
More than one year | |||
Disaggregated revenue: | |||
Transaction price allocated to remaining performance obligations | 125,758 | 132,844 | |
Revenue from external customer | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 189,756,246 | 180,001,261 | |
Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 189,569,543 | 179,785,704 | |
Services transferred over time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 186,703 | 215,557 | |
Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 183,980,231 | 170,784,702 | |
Outside of Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 5,776,015 | 9,216,559 | |
Operating segment | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 259,196,277 | 247,633,285 | |
Inter-segment elimination | |||
Disaggregated revenue: | |||
Sales of goods | (69,440,031) | (67,632,024) | |
Inter-segment revenue | 69,440,031 | 67,632,024 | 58,973,482 |
Total revenue from contracts with customers | (69,440,031) | (67,632,024) | |
Inter-segment elimination | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | (69,440,031) | (67,632,024) | |
Inter-segment elimination | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | (69,440,031) | (67,632,024) | |
Alumina | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 14,117,594 | 14,586,564 | |
Alumina | Revenue from external customer | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 14,117,594 | 14,586,564 | |
Alumina | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 43,690,995 | 43,979,059 | |
Inter-segment revenue | (29,573,401) | (29,392,495) | |
Total revenue from contracts with customers | 43,690,995 | 43,979,059 | |
Alumina | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 43,690,995 | 43,979,059 | |
Alumina | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 43,690,995 | 43,979,059 | |
Alumina | Inter-segment elimination | |||
Disaggregated revenue: | |||
Inter-segment revenue | (29,573,401) | 29,392,495 | (24,431,939) |
Total revenue from contracts with customers | (29,573,401) | (29,392,495) | |
Primary aluminum | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 37,349,482 | 41,313,516 | |
Primary aluminum | Revenue from external customer | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 37,349,482 | 41,313,516 | |
Primary aluminum | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 49,043,864 | 53,771,379 | |
Inter-segment revenue | (11,694,382) | (12,457,863) | |
Total revenue from contracts with customers | 49,043,864 | 53,771,379 | |
Primary aluminum | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 49,043,864 | 53,771,379 | |
Primary aluminum | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 49,043,864 | 53,771,379 | |
Primary aluminum | Inter-segment elimination | |||
Disaggregated revenue: | |||
Inter-segment revenue | (11,694,382) | 12,457,863 | (10,693,678) |
Total revenue from contracts with customers | (11,694,382) | (12,457,863) | |
Energy | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 7,099,211 | 7,036,936 | |
Energy | Revenue from external customer | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 7,099,211 | 7,036,936 | |
Energy | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 7,148,644 | 7,019,716 | |
Rendering of services | 186,703 | 215,557 | |
Inter-segment revenue | (236,136) | (198,337) | |
Total revenue from contracts with customers | 7,335,347 | 7,235,273 | |
Energy | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 7,148,644 | 7,019,716 | |
Energy | Operating segment | Services transferred over time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 186,703 | 215,557 | |
Energy | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 7,335,347 | 7,235,273 | |
Energy | Inter-segment elimination | |||
Disaggregated revenue: | |||
Inter-segment revenue | (236,136) | 198,337 | (517,269) |
Total revenue from contracts with customers | (236,136) | (198,337) | |
Trading | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 130,864,398 | 116,610,176 | |
Trading | Revenue from external customer | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 130,864,398 | 116,610,176 | |
Trading | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 158,633,447 | 141,980,479 | |
Inter-segment revenue | (27,769,049) | (25,370,303) | |
Total revenue from contracts with customers | 158,633,447 | 141,980,479 | |
Trading | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 158,633,447 | 141,980,479 | |
Trading | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 152,857,432 | 132,763,920 | |
Trading | Operating segment | Outside of Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 5,776,015 | 9,216,559 | |
Trading | Inter-segment elimination | |||
Disaggregated revenue: | |||
Inter-segment revenue | (27,769,049) | 25,370,303 | (23,159,115) |
Total revenue from contracts with customers | (27,769,049) | (25,370,303) | |
Corporate and other operating segments | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 325,561 | 454,069 | |
Corporate and other operating segments | Revenue from external customer | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 325,561 | 454,069 | |
Corporate and other operating segments | Operating segment | |||
Disaggregated revenue: | |||
Sales of goods | 492,624 | 667,095 | |
Inter-segment revenue | (167,063) | (213,026) | |
Total revenue from contracts with customers | 492,624 | 667,095 | |
Corporate and other operating segments | Operating segment | Goods transferred at a point in time | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 492,624 | 667,095 | |
Corporate and other operating segments | Operating segment | Mainland China | |||
Disaggregated revenue: | |||
Total revenue from contracts with customers | 492,624 | 667,095 | |
Corporate and other operating segments | Inter-segment elimination | |||
Disaggregated revenue: | |||
Inter-segment revenue | (167,063) | 213,026 | ¥ (171,481) |
Total revenue from contracts with customers | ¥ (167,063) | ¥ (213,026) |
REVENUE AND SEGMENT INFORMATI_5
REVENUE AND SEGMENT INFORMATION - Information about operating segments results (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)segment | Dec. 31, 2019CNY (¥)segment | Dec. 31, 2018CNY (¥)segment | Dec. 31, 2017CNY (¥)segment | Dec. 31, 2019CNY (¥) | |
Segment information | |||||
Number of reportable operating segments | segment | 5 | 5 | 5 | 5 | |
Total revenue | $ 27,302,445 | ¥ 190,074,161 | ¥ 180,241,414 | ¥ 181,022,636 | |
Total revenue from contracts with customers | 189,756,246 | 180,001,261 | |||
Segment profit/(loss) before income tax | 303,628 | 2,113,801 | 2,264,514 | 3,049,175 | |
Income tax expense | (89,879) | (625,720) | (822,519) | (643,706) | |
Profit for the year | 213,749 | 1,488,081 | 1,441,995 | 2,405,469 | |
Finance income | 37,512 | 261,151 | 492,234 | 706,690 | |
Finance costs | (706,883) | (4,921,179) | (4,882,496) | (5,203,422) | |
Share of profits and losses for the year | 38,800 | 270,115 | (199,452) | 8,151 | |
Share of the joint ventures' profits and losses for the year | 7,005 | 48,767 | 39,335 | (165,249) | |
Amortization of land use rights | (1,075,825) | (108,152) | (91,579) | ||
Depreciation and amortization (excluding the amortization of land use rights) | (7,714,418) | (7,947,601) | (6,973,168) | ||
Gain/(loss) on disposal of property, plant and equipment and land use rights | 242,960 | 101,098 | 76,739 | ||
Gain on disposal of business | 262,677 | ||||
Unrealized (losses)/gains on futures, forward and option contracts, net | (9,851) | 100,967 | (131,073) | ||
Realized gain/(loss) on futures, forward and option contracts, net | 60,671 | 40,492 | (23,951) | ||
Other income | 78,632 | 135,367 | |||
Impairment loss on property, plant and equipment | (37,254) | (259,354) | (46,484) | (16,200) | |
Gain on disposal of subsidiaries | 261,187 | 3,517 | 325,022 | ||
Gain on share of associates' net assets | 295,288 | ||||
Impairment losses | (1,448) | (8,134) | |||
Change for impairment of inventories | 251,131 | (353,945) | 154,294 | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (169,751) | (107,956) | (60,699) | ||
Gain (loss) on disposal of associates | 159,514 | (1,904) | |||
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 97,775 | 109,914 | 79,408 | ||
(Loss)/gain on previously held equity interest remeasured at an acquisition-date fair value | 748,086 | 117,640 | |||
Investments in joint ventures | 486,308 | 3,393,349 | 6,007,624 | ¥ 3,385,582 | |
Investments in associates | $ 1,366,371 | 6,363,462 | 6,935,030 | 9,512,401 | |
Capital expenditure in: | |||||
Intangible assets | 1,155,386 | 103,304 | 285,167 | ||
Additions | 1,247,858 | 2,838 | 59,215 | ||
Property, plant and equipment | 10,621,224 | 9,022,224 | 9,763,667 | ||
Revenue from external customer | |||||
Segment information | |||||
Total revenue | 190,074,161 | 180,241,414 | 181,022,636 | ||
Total revenue from contracts with customers | 189,756,246 | 180,001,261 | |||
Self-produced alumina | |||||
Segment information | |||||
Sales of self- produced products | 13,329,000 | 16,561,000 | 13,187,000 | ||
Self-produced primary aluminum | |||||
Segment information | |||||
Sales of self- produced products | 10,689,000 | 13,517,000 | 6,680,000 | ||
Self-produced other products | |||||
Segment information | |||||
Sales of self- produced products | 356,000 | 4,376,000 | 3,292,000 | ||
Operating segment | |||||
Segment information | |||||
Total revenue from contracts with customers | 259,196,277 | 247,633,285 | |||
Inter-segment elimination | |||||
Segment information | |||||
Inter-segment revenue | 69,440,031 | 67,632,024 | 58,973,482 | ||
Total revenue | (69,440,031) | (67,632,024) | (58,973,482) | ||
Total revenue from contracts with customers | (69,440,031) | (67,632,024) | |||
Segment profit/(loss) before income tax | 213,084 | 198,103 | 97,575 | ||
Alumina | |||||
Segment information | |||||
Total revenue from contracts with customers | 14,117,594 | 14,586,564 | |||
Alumina | Revenue from external customer | |||||
Segment information | |||||
Total revenue from contracts with customers | 14,117,594 | 14,586,564 | |||
Alumina | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (29,573,401) | (29,392,495) | |||
Total revenue | 43,899,982 | 44,150,937 | 38,997,261 | ||
Total revenue from contracts with customers | 43,690,995 | 43,979,059 | |||
Segment profit/(loss) before income tax | 844,848 | 3,496,381 | 3,290,945 | ||
Finance income | 61,644 | 100,125 | 233,016 | ||
Finance costs | (651,238) | (399,344) | (708,655) | ||
Share of profits and losses for the year | 86,245 | 37,377 | 82,619 | ||
Share of the joint ventures' profits and losses for the year | (6,319) | (1,141) | |||
Amortization of land use rights | (495,693) | (39,027) | (42,768) | ||
Depreciation and amortization (excluding the amortization of land use rights) | (2,830,152) | (2,846,051) | (2,781,350) | ||
Gain/(loss) on disposal of property, plant and equipment and land use rights | (587,503) | 53,116 | 47,243 | ||
Gain on disposal of business | 262,677 | ||||
Realized gain/(loss) on futures, forward and option contracts, net | (716) | 3,398 | |||
Other income | 21,252 | 57,777 | |||
Impairment loss on property, plant and equipment | (8,743) | (568) | |||
Gain on disposal of subsidiaries | 118 | 7,671 | |||
Change for impairment of inventories | 69,740 | (54,463) | 79,063 | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | 6,837 | 19,320 | (17,453) | ||
Investments in joint ventures | 989,840 | 2,809,758 | 1,076,085 | ||
Investments in associates | 89,734 | 90,875 | 83,424 | ||
Capital expenditure in: | |||||
Intangible assets | 209,365 | 99,089 | |||
Additions | 1,080,285 | 2,786 | |||
Property, plant and equipment | 6,486,248 | 2,564,003 | 2,642,350 | ||
Alumina | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 14,326,581 | 14,758,442 | 14,565,322 | ||
Alumina | Inter-segment elimination | |||||
Segment information | |||||
Inter-segment revenue | (29,573,401) | 29,392,495 | (24,431,939) | ||
Total revenue from contracts with customers | (29,573,401) | (29,392,495) | |||
Primary aluminum | |||||
Segment information | |||||
Total revenue from contracts with customers | 37,349,482 | 41,313,516 | |||
Primary aluminum | Revenue from external customer | |||||
Segment information | |||||
Total revenue from contracts with customers | 37,349,482 | 41,313,516 | |||
Primary aluminum | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (11,694,382) | (12,457,863) | |||
Total revenue | 49,089,019 | 53,802,172 | 47,245,646 | ||
Total revenue from contracts with customers | 49,043,864 | 53,771,379 | |||
Segment profit/(loss) before income tax | 687,246 | (929,298) | 826,632 | ||
Finance income | 53,252 | 54,458 | 83,996 | ||
Finance costs | (1,328,730) | (1,131,622) | (1,212,249) | ||
Share of profits and losses for the year | 8 | ||||
Share of the joint ventures' profits and losses for the year | 11,621 | 17,102 | (16,887) | ||
Amortization of land use rights | (338,975) | (41,175) | (25,120) | ||
Depreciation and amortization (excluding the amortization of land use rights) | (3,235,356) | (2,954,801) | (2,516,058) | ||
Gain/(loss) on disposal of property, plant and equipment and land use rights | 830,205 | 15,211 | 40,106 | ||
Unrealized (losses)/gains on futures, forward and option contracts, net | (17,033) | ||||
Realized gain/(loss) on futures, forward and option contracts, net | (47,730) | ||||
Other income | 716 | 38,220 | |||
Impairment loss on property, plant and equipment | (247,112) | ||||
Change for impairment of inventories | 166,331 | (273,796) | 64,734 | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | 1,088 | (9,406) | 269 | ||
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 2,792 | ||||
Investments in associates | 558,759 | 296,357 | 574,385 | ||
Capital expenditure in: | |||||
Intangible assets | 949,013 | 753 | 197 | ||
Additions | 131,797 | ||||
Property, plant and equipment | 2,381,644 | 4,602,580 | 5,533,168 | ||
Primary aluminum | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 37,394,637 | 41,344,309 | 36,551,968 | ||
Primary aluminum | Inter-segment elimination | |||||
Segment information | |||||
Inter-segment revenue | (11,694,382) | 12,457,863 | (10,693,678) | ||
Total revenue from contracts with customers | (11,694,382) | (12,457,863) | |||
Energy | |||||
Segment information | |||||
Total revenue from contracts with customers | 7,099,211 | 7,036,936 | |||
Energy | Revenue from external customer | |||||
Segment information | |||||
Total revenue from contracts with customers | 7,099,211 | 7,036,936 | |||
Energy | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (236,136) | (198,337) | |||
Total revenue | 7,345,971 | 7,235,273 | 6,250,966 | ||
Total revenue from contracts with customers | 7,335,347 | 7,235,273 | |||
Segment profit/(loss) before income tax | 403,479 | 26,020 | (171,310) | ||
Finance income | 35,093 | 15,744 | 44,015 | ||
Finance costs | (1,064,769) | (1,047,285) | (1,000,767) | ||
Share of profits and losses for the year | (22,272) | (225,377) | (383,263) | ||
Share of the joint ventures' profits and losses for the year | (32,660) | (52,368) | (181,667) | ||
Amortization of land use rights | (146,139) | (9,335) | (15) | ||
Depreciation and amortization (excluding the amortization of land use rights) | (1,488,077) | (1,962,081) | (1,510,218) | ||
Gain/(loss) on disposal of property, plant and equipment and land use rights | (1,010) | 24,780 | (12,826) | ||
Realized gain/(loss) on futures, forward and option contracts, net | 2,855 | 1,585 | |||
Other income | 47,666 | 29,858 | |||
Impairment loss on property, plant and equipment | (3,499) | (7,450) | (15,632) | ||
Gain on disposal of subsidiaries | 3,014 | 38,397 | |||
Change for impairment of inventories | (19,076) | (7,884) | 4,488 | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (53,227) | (23,327) | (25,119) | ||
Gain (loss) on disposal of associates | 159,514 | (1,904) | |||
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 1,000 | 1,000 | |||
(Loss)/gain on previously held equity interest remeasured at an acquisition-date fair value | (3,177) | 117,640 | |||
Investments in joint ventures | 435,867 | 878,196 | 298,991 | ||
Investments in associates | 2,064,425 | 2,170,178 | 2,021,964 | ||
Capital expenditure in: | |||||
Intangible assets | (5,062) | 2,754 | 284,509 | ||
Additions | 8,411 | 27,956 | |||
Property, plant and equipment | 1,454,659 | 1,610,442 | 1,268,051 | ||
Energy | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 7,109,835 | 7,036,936 | 5,733,697 | ||
Energy | Inter-segment elimination | |||||
Segment information | |||||
Inter-segment revenue | (236,136) | 198,337 | (517,269) | ||
Total revenue from contracts with customers | (236,136) | (198,337) | |||
Trading | |||||
Segment information | |||||
Total revenue from contracts with customers | 130,864,398 | 116,610,176 | |||
Trading | Revenue from external customer | |||||
Segment information | |||||
Total revenue from contracts with customers | 130,864,398 | 116,610,176 | |||
Trading | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (27,769,049) | (25,370,303) | |||
Sales of self- produced products | 24,374,356 | 34,454,943 | 23,158,952 | ||
Sales of products sourced from external suppliers | 106,542,875 | 82,192,575 | 100,538,864 | ||
Total revenue | 158,686,280 | 142,017,821 | 146,856,931 | ||
Total revenue from contracts with customers | 158,633,447 | 141,980,479 | |||
Segment profit/(loss) before income tax | 952,848 | 740,454 | 733,896 | ||
Finance income | 105,622 | 136,515 | 192,327 | ||
Finance costs | (223,928) | (366,807) | (467,088) | ||
Share of profits and losses for the year | 3,767 | 9,010 | 1,885 | ||
Share of the joint ventures' profits and losses for the year | 36,579 | 19,375 | 9,463 | ||
Amortization of land use rights | (45,541) | (18,615) | (6,376) | ||
Depreciation and amortization (excluding the amortization of land use rights) | (79,366) | (101,705) | (79,342) | ||
Gain/(loss) on disposal of property, plant and equipment and land use rights | 7,216 | 20,036 | 1,673 | ||
Unrealized (losses)/gains on futures, forward and option contracts, net | (9,851) | 100,967 | (92,719) | ||
Realized gain/(loss) on futures, forward and option contracts, net | 60,671 | 47,601 | (24,953) | ||
Other income | 6,241 | 6,718 | |||
Impairment loss on property, plant and equipment | (39,034) | ||||
Gain on disposal of subsidiaries | 2,738 | 54,599 | |||
Change for impairment of inventories | 34,136 | (17,802) | 722 | ||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (121,154) | (84,922) | (18,396) | ||
Investments in joint ventures | 77,211 | 28,865 | 79,199 | ||
Investments in associates | 131,691 | 184,149 | 362,757 | ||
Capital expenditure in: | |||||
Intangible assets | 1,869 | 514 | 372 | ||
Additions | 27,365 | 52 | 25,199 | ||
Property, plant and equipment | 132,841 | 101,360 | 64,005 | ||
Trading | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 130,917,231 | 116,647,518 | 123,697,816 | ||
Trading | Inter-segment elimination | |||||
Segment information | |||||
Inter-segment revenue | (27,769,049) | 25,370,303 | (23,159,115) | ||
Total revenue from contracts with customers | (27,769,049) | (25,370,303) | |||
Corporate and other operating segments | |||||
Segment information | |||||
Total revenue from contracts with customers | 325,561 | 454,069 | |||
Corporate and other operating segments | Revenue from external customer | |||||
Segment information | |||||
Total revenue from contracts with customers | 325,561 | 454,069 | |||
Corporate and other operating segments | Operating segment | |||||
Segment information | |||||
Inter-segment revenue | (167,063) | (213,026) | |||
Total revenue | 492,940 | 667,235 | 645,314 | ||
Total revenue from contracts with customers | 492,624 | 667,095 | |||
Segment profit/(loss) before income tax | (987,704) | (1,267,146) | (1,728,563) | ||
Finance income | 5,540 | 185,392 | 153,336 | ||
Finance costs | (1,652,514) | (1,937,438) | (1,814,663) | ||
Share of profits and losses for the year | 202,375 | (20,470) | 306,910 | ||
Share of the joint ventures' profits and losses for the year | 39,546 | 56,367 | 23,842 | ||
Amortization of land use rights | (49,477) | (17,300) | |||
Depreciation and amortization (excluding the amortization of land use rights) | (81,467) | (82,963) | (86,200) | ||
Gain/(loss) on disposal of property, plant and equipment and land use rights | (5,948) | (12,045) | 543 | ||
Unrealized (losses)/gains on futures, forward and option contracts, net | (21,321) | ||||
Realized gain/(loss) on futures, forward and option contracts, net | (9,248) | 43,749 | |||
Other income | 2,757 | 2,794 | |||
Gain on disposal of subsidiaries | 255,317 | (4,154) | 232,026 | ||
Gain on share of associates' net assets | 295,288 | ||||
Change for impairment of inventories | 5,287 | ||||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (3,295) | (9,621) | |||
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 96,775 | 108,914 | 76,616 | ||
(Loss)/gain on previously held equity interest remeasured at an acquisition-date fair value | 751,263 | ||||
Investments in joint ventures | 1,890,431 | 2,290,805 | 1,931,307 | ||
Investments in associates | 3,518,853 | 4,193,471 | ¥ 6,469,871 | ||
Capital expenditure in: | |||||
Intangible assets | 201 | 194 | 89 | ||
Additions | 6,060 | ||||
Property, plant and equipment | 165,832 | 143,839 | 256,093 | ||
Corporate and other operating segments | Operating segment | Revenue from external customer | |||||
Segment information | |||||
Total revenue | 325,877 | 454,209 | 473,833 | ||
Corporate and other operating segments | Inter-segment elimination | |||||
Segment information | |||||
Inter-segment revenue | (167,063) | 213,026 | ¥ (171,481) | ||
Total revenue from contracts with customers | ¥ (167,063) | ¥ (213,026) |
REVENUE AND SEGMENT INFORMATI_6
REVENUE AND SEGMENT INFORMATION - Information about operating segments assets and liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Assets | |||
Assets | $ 29,169,276 | ¥ 203,070,664 | ¥ 200,964,751 |
Deferred tax assets | 218,653 | 1,522,216 | 1,542,655 |
Prepaid income tax | 93,093 | 162,103 | |
Liabilities | |||
Liabilities | 19,010,257 | 132,345,604 | 133,295,132 |
Deferred tax liabilities | 246,020 | 1,712,739 | 1,812,805 |
Income tax payable | $ 31,106 | 216,554 | 113,783 |
Operating segment | |||
Assets | |||
Assets | 259,644,304 | 233,643,610 | |
Liabilities | |||
Liabilities | 188,498,275 | 165,596,878 | |
Operating segment | Alumina | |||
Assets | |||
Assets | 90,584,165 | 82,677,250 | |
Liabilities | |||
Liabilities | 47,247,335 | 38,817,030 | |
Operating segment | Primary aluminum | |||
Assets | |||
Assets | 63,155,573 | 57,712,842 | |
Liabilities | |||
Liabilities | 38,588,473 | 34,492,538 | |
Operating segment | Energy | |||
Assets | |||
Assets | 38,886,172 | 39,458,086 | |
Liabilities | |||
Liabilities | 26,582,436 | 27,265,031 | |
Operating segment | Trading | |||
Assets | |||
Assets | 17,360,278 | 20,217,906 | |
Liabilities | |||
Liabilities | 9,308,667 | 14,530,230 | |
Operating segment | Corporate and other operating segments | |||
Assets | |||
Assets | 49,658,116 | 33,577,526 | |
Liabilities | |||
Liabilities | 66,771,364 | 50,492,049 | |
Inter-segment elimination | |||
Assets | |||
Elimination of inter-segment receivables | (58,081,964) | (34,228,334) | |
Liabilities | |||
Elimination of inter-segment payables | (58,081,964) | (34,228,334) | |
Other elimination | |||
Assets | |||
Elimination of inter-segment receivables | (106,985) | (155,283) | |
Corporate and other unallocated assets | |||
Assets | |||
Deferred tax assets | 1,522,216 | 1,542,655 | |
Prepaid income tax | 93,093 | 162,103 | |
Liabilities | |||
Deferred tax liabilities | 1,712,739 | 1,812,805 | |
Income tax payable | ¥ 216,554 | ¥ 113,783 |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disclosure of geographical areas [line items] | ||||
Non-current assets (excluding financial assets and deferred tax assets) | ¥ 150,466,772 | ¥ 138,586,090 | ||
Revenue | $ 27,302,445 | 190,074,161 | 180,241,414 | ¥ 181,022,636 |
PRC Government | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | 40,567,000 | 32,852,000 | 39,759,000 | |
Mainland China | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets (excluding financial assets and deferred tax assets) | 147,798,239 | 137,939,763 | ||
Revenue | 184,298,146 | 171,024,855 | 171,956,305 | |
Outside of Mainland China | ||||
Disclosure of geographical areas [line items] | ||||
Non-current assets (excluding financial assets and deferred tax assets) | 2,668,533 | 646,327 | ||
Revenue | ¥ 5,776,015 | ¥ 9,216,559 | ¥ 9,066,331 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | ¥ 12,879,365 | ¥ 10,637,633 | ||
Additions | 1,155,386 | 103,304 | ¥ 285,167 | |
Acquisition of a subsidiary | 1,893,300 | |||
Disposal | (168) | |||
Disposal of subsidiaries | (9) | |||
Amortization | (338,938) | (295,901) | (275,877) | |
Transfer from property, plant and equipment | (63,370) | 525,216 | ||
Impairment losses | (1,448) | (8,134) | ||
Currency translation differences | 5,286 | 15,981 | ||
Intangible assets and goodwill at end of period | $ 1,977,141 | 13,764,460 | 12,879,365 | 10,637,633 |
Goodwill | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 3,510,633 | 2,345,930 | ||
Acquisition of a subsidiary | 1,163,949 | |||
Currency translation differences | 259 | 754 | ||
Intangible assets and goodwill at end of period | 3,510,892 | 3,510,633 | 2,345,930 | |
Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 7,682,383 | 7,066,428 | ||
Additions | 467,640 | 98,995 | ||
Acquisition of a subsidiary | 728,066 | |||
Amortization | (294,766) | (265,108) | ||
Transfer from property, plant and equipment | 41,148 | |||
Reclassification | 115,871 | 7,072 | ||
Currency translation differences | 1,783 | 5,782 | ||
Intangible assets and goodwill at end of period | 7,972,911 | 7,682,383 | 7,066,428 | |
Mineral exploration rights | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,113,959 | 1,111,586 | ||
Reclassification | (115,871) | (7,072) | ||
Currency translation differences | 3,244 | 9,445 | ||
Intangible assets and goodwill at end of period | 1,001,332 | 1,113,959 | 1,111,586 | |
Computer software, Electrolytic aluminium production quota and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 572,390 | 113,689 | ||
Additions | 687,746 | 4,309 | ||
Acquisition of a subsidiary | 1,285 | |||
Disposal | (168) | |||
Disposal of subsidiaries | (9) | |||
Amortization | (44,172) | (30,793) | ||
Transfer from property, plant and equipment | (63,370) | 484,068 | ||
Intangible assets and goodwill at end of period | 1,279,325 | 572,390 | ¥ 113,689 | |
Cost | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 14,943,750 | |||
Intangible assets and goodwill at end of period | 16,168,939 | 14,943,750 | ||
Cost | Goodwill | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 3,510,633 | |||
Intangible assets and goodwill at end of period | 3,510,892 | 3,510,633 | ||
Cost | Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 9,430,183 | |||
Intangible assets and goodwill at end of period | 10,016,634 | 9,430,183 | ||
Cost | Mineral exploration rights | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,113,959 | |||
Intangible assets and goodwill at end of period | 1,001,332 | 1,113,959 | ||
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 | 888,975 | |||
Intangible assets and goodwill at end of period | 1,640,081 | 888,975 | ||
Accumulated amortization and impairment | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (2,064,385) | |||
Intangible assets and goodwill at end of period | (2,404,479) | (2,064,385) | ||
Accumulated amortization and impairment | Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (1,747,800) | |||
Intangible assets and goodwill at end of period | (2,043,723) | (1,747,800) | ||
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 | (316,585) | |||
Intangible assets and goodwill at end of period | ¥ (360,756) | ¥ (316,585) |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization expenses of intangible assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Information about reconciliation of changes in intangible assets and goodwill | |||
Amortization | ¥ 338,938 | ¥ 295,901 | ¥ 275,877 |
Intangible assets | 757,269 | 772,597 | |
Cost of sales | |||
Information about reconciliation of changes in intangible assets and goodwill | |||
Amortization | 294,766 | 265,108 | 241,261 |
General and administrative expenses | |||
Information about reconciliation of changes in intangible assets and goodwill | |||
Amortization | 44,172 | 30,793 | ¥ 34,616 |
Mining rights | |||
Information about reconciliation of changes in intangible assets and goodwill | |||
Mining rights carrying value | ¥ 39,000 | ¥ 21,000 | |
Carrying value to total asset value (as a percent) | 0.02% | 0.01% |
INTANGIBLE ASSETS - Impairment
INTANGIBLE ASSETS - Impairment testing of goodwill (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Groups of CGUs according to operating segments | ||
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 | CGU | ||
Groups of CGUs according to operating segments | ||
Goodwill | 1,369,366 | 1,369,107 |
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 | 15,998 | 15,739 |
Alumina | Shanxi Huaxing | ||
Groups of CGUs according to operating segments | ||
Goodwill | 1,163,949 | 1,163,949 |
Primary aluminum | CGU | ||
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 Branch | ||
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | ¥ 106,249,116 | ¥ 95,731,894 | ||
Government grants | (76,223) | (113,949) | ||
Transfer to intangible assets (Note 5) | (63,370) | (525,216) | ||
Transfer to prepaid land lease payments (Note 19) | (382,242) | |||
Transfer to right-of-use assets | (107,863) | |||
Transfer to investment properties (Note 7) | (179,564) | (11,039) | ||
Transfer from investment properties | 21,773 | |||
Additions | 10,621,224 | 10,325,619 | ||
Acquisition of subsidiaries | 11,832,230 | |||
Transfer from right-of-use assets (Note 19)* | 1,674,260 | |||
Disposal of subsidiaries | (162,792) | (9,519) | ||
Disposals | (548,907) | (3,074,935) | ||
Depreciation | (7,094,716) | (7,499,322) | ||
Impairment loss on property, plant and equipment | $ (37,254) | (259,354) | (46,484) | ¥ (16,200) |
Currency translation differences | 255 | 306 | ||
Opening net book amount at 1 January 2019 | 99,528,506 | |||
Impact on initial application of IFRS 16 | (6,720,610) | |||
Property, plant and equipment at end of period | $ 14,842,635 | 103,331,456 | 106,249,116 | 95,731,894 |
Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 176,559,410 | |||
Property, plant and equipment at end of period | 177,357,748 | 176,559,410 | ||
Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (70,310,294) | |||
Property, plant and equipment at end of period | (74,026,292) | (70,310,294) | ||
Buildings | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 38,849,351 | 32,288,223 | ||
Reclassifications and internal transfers | 3,869,147 | 3,204,611 | ||
Government grants | (7,211) | (468) | ||
Transfer to right-of-use assets | (107,368) | |||
Transfer to investment properties (Note 7) | (179,564) | (11,039) | ||
Transfer from investment properties | 21,773 | |||
Additions | 576,035 | 230,243 | ||
Acquisition of subsidiaries | 4,633,728 | |||
Disposal of subsidiaries | (85,851) | |||
Disposals | (79,280) | (251,212) | ||
Depreciation | (1,849,121) | (1,266,607) | ||
Impairment loss on property, plant and equipment | (105,347) | |||
Currency translation differences | 89 | 99 | ||
Opening net book amount at 1 January 2019 | 38,700,678 | |||
Impact on initial application of IFRS 16 | (148,673) | |||
Property, plant and equipment at end of period | 40,732,207 | 38,849,351 | 32,288,223 | |
Buildings | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 56,620,994 | |||
Property, plant and equipment at end of period | 60,153,059 | 56,620,994 | ||
Buildings | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (17,771,643) | |||
Property, plant and equipment at end of period | (19,420,852) | (17,771,643) | ||
Plant and machinery | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 53,695,930 | 52,784,696 | ||
Reclassifications and internal transfers | 5,125,998 | 3,600,371 | ||
Government grants | (69,012) | (113,481) | ||
Transfer to right-of-use assets | (495) | |||
Additions | 635,678 | 1,998,717 | ||
Acquisition of subsidiaries | 4,026,062 | |||
Transfer from right-of-use assets (Note 19)* | 1,674,260 | |||
Disposal of subsidiaries | (73,432) | (472) | ||
Disposals | (378,816) | (2,505,158) | ||
Depreciation | (5,121,646) | (6,087,890) | ||
Impairment loss on property, plant and equipment | (153,394) | (7,061) | ||
Currency translation differences | 103 | 146 | ||
Opening net book amount at 1 January 2019 | 47,844,432 | |||
Impact on initial application of IFRS 16 | (5,851,498) | |||
Property, plant and equipment at end of period | 49,483,676 | 53,695,930 | 52,784,696 | |
Plant and machinery | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 103,608,492 | |||
Property, plant and equipment at end of period | 101,624,509 | 103,608,492 | ||
Plant and machinery | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (49,912,562) | |||
Property, plant and equipment at end of period | (52,140,833) | (49,912,562) | ||
Transportation facilities | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 509,595 | 541,908 | ||
Reclassifications and internal transfers | (29,181) | 75,277 | ||
Additions | 44,122 | 31,668 | ||
Acquisition of subsidiaries | 17,443 | |||
Disposal of subsidiaries | (3,270) | (101) | ||
Disposals | (19,672) | (39,827) | ||
Depreciation | (100,547) | (116,807) | ||
Impairment loss on property, plant and equipment | (14) | |||
Currency translation differences | 17 | 34 | ||
Opening net book amount at 1 January 2019 | 509,595 | |||
Property, plant and equipment at end of period | 401,050 | 509,595 | 541,908 | |
Transportation facilities | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 2,538,835 | |||
Property, plant and equipment at end of period | 2,238,818 | 2,538,835 | ||
Transportation facilities | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (2,029,240) | |||
Property, plant and equipment at end of period | (1,837,768) | (2,029,240) | ||
Office and other equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 158,237 | 129,630 | ||
Reclassifications and internal transfers | 207,546 | 5,149 | ||
Additions | 13,506 | 48,912 | ||
Acquisition of subsidiaries | 5,937 | |||
Disposal of subsidiaries | (239) | (53) | ||
Disposals | (938) | (3,347) | ||
Depreciation | (23,402) | (28,018) | ||
Impairment loss on property, plant and equipment | (185) | |||
Currency translation differences | 46 | 27 | ||
Opening net book amount at 1 January 2019 | 158,237 | |||
Property, plant and equipment at end of period | 354,571 | 158,237 | 129,630 | |
Office and other equipment | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 603,665 | |||
Property, plant and equipment at end of period | 829,575 | 603,665 | ||
Office and other equipment | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (445,428) | |||
Property, plant and equipment at end of period | (475,004) | (445,428) | ||
Construction in progress | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 13,036,003 | 9,987,437 | ||
Reclassifications and internal transfers | (9,173,510) | (6,885,408) | ||
Transfer to intangible assets (Note 5) | (63,370) | (525,216) | ||
Transfer to prepaid land lease payments (Note 19) | (382,242) | |||
Additions | 9,351,883 | 8,016,079 | ||
Acquisition of subsidiaries | 3,149,060 | |||
Disposal of subsidiaries | (8,893) | |||
Disposals | (70,201) | (275,391) | ||
Impairment loss on property, plant and equipment | (414) | (39,423) | ||
Opening net book amount at 1 January 2019 | 12,315,564 | |||
Impact on initial application of IFRS 16 | (720,439) | |||
Property, plant and equipment at end of period | 12,359,952 | 13,036,003 | ¥ 9,987,437 | |
Construction in progress | Cost | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 13,187,424 | |||
Property, plant and equipment at end of period | 12,511,787 | 13,187,424 | ||
Construction in progress | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (151,421) | |||
Property, plant and equipment at end of period | ¥ (151,835) | ¥ (151,421) |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Depreciation expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | ¥ 7,094,716 | ¥ 7,499,322 | ¥ 6,554,842 | ||
Net carrying value | 106,249,116 | 95,731,894 | $ 14,842,635 | ¥ 103,331,456 | |
Interest attributable to the construction of property, plant and equipment | |||||
Less: interest expense capitalized in property, plant and equipment | ¥ 289,499 | 517,589 | ¥ 344,452 | ||
Additional information | |||||
Carrying value of temporarily idle property, plant and equipment | 675,000 | 952,000 | |||
Property, plant and equipment, pledged as security | ¥ 4,168,239 | 4,946,338 | |||
Minimum | |||||
Interest attributable to the construction of property, plant and equipment | |||||
Capitalization rate during the year | 4.00% | 4.54% | 4.41% | ||
Maximum | |||||
Interest attributable to the construction of property, plant and equipment | |||||
Capitalization rate during the year | 6.96% | 7.00% | 8.00% | ||
Cost of sales | |||||
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | ¥ 6,926,580 | ¥ 7,291,380 | ¥ 6,387,773 | ||
General and administrative expenses | |||||
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | 161,547 | 201,337 | 160,143 | ||
Selling and distribution expenses | |||||
Depreciation and amortisation expense | |||||
Depreciation of property, plant and equipment | ¥ 6,589 | 6,605 | 6,926 | ||
Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying value | (70,310,294) | (74,026,292) | |||
Buildings | |||||
Depreciation and amortisation expense | |||||
Net carrying value | 38,849,351 | 32,288,223 | 40,732,207 | ||
Buildings | Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying value | (17,771,643) | (19,420,852) | |||
Ownership certificates of buildings | |||||
Depreciation and amortisation expense | |||||
Net carrying value | ¥ 5,639,000 | ¥ 7,315,000 | |||
Carrying value to total asset value (as a percent) | 2.81% | 3.60% | 3.60% | ||
Plant and machinery | |||||
Depreciation and amortisation expense | |||||
Net carrying value | ¥ 53,695,930 | 52,784,696 | ¥ 49,483,676 | ||
Additional information | |||||
Fixed assets held under finance leases | 10,678,000 | ||||
Plant and machinery | Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying value | (49,912,562) | (52,140,833) | |||
Construction in progress | |||||
Depreciation and amortisation expense | |||||
Net carrying value | 13,036,003 | ¥ 9,987,437 | 12,359,952 | ||
Additional information | |||||
Fixed assets held under finance leases | 112,000 | ||||
Construction in progress | Accumulated amortization and impairment | |||||
Depreciation and amortisation expense | |||||
Net carrying value | (151,421) | ¥ (151,835) | |||
Machinery and construction in progress held under finance leases | Accumulated amortization and impairment | |||||
Additional information | |||||
Fixed assets held under finance leases | ¥ (2,011,000) |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
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 | $ 37,254 | ¥ 259,354 | ¥ 46,484 | ¥ 16,200 |
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% | ||
Impairment loss on property, plant and equipment | ¥ 0 | |||
Recoverable amounts for property, plant and equipment about to be disposed or abandoned, and impairment losses | ¥ 259,000 | ¥ 46,000 | ¥ 16,000 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Investment properties | ||||
Investment properties at beginning of period | ¥ 1,156,006 | ¥ 1,332,370 | ||
Additions | 44,063 | |||
Transfer from property, plant and equipment and land use rights (note 6) (note 8) | 179,564 | 11,039 | ||
Transfer to property, plant and equipment (note 6) | 239,765 | (21,773) | ||
Disposals | (89,486) | (143,401) | ||
Depreciation | (26,559) | (22,229) | ¥ (14,105) | |
Impairment | (87) | |||
Investment properties at end of period | $ 215,931 | 1,503,266 | 1,156,006 | 1,332,370 |
Cost | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,190,641 | |||
Investment properties at end of period | 1,668,048 | 1,190,641 | ||
Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (34,635) | |||
Investment properties at end of period | (164,782) | (34,635) | ||
Buildings | ||||
Investment properties | ||||
Investment properties at beginning of period | 235,974 | 254,061 | ||
Additions | 44,063 | |||
Transfer from property, plant and equipment and land use rights (note 6) (note 8) | 179,564 | 11,039 | ||
Transfer to property, plant and equipment (note 6) | (21,773) | |||
Disposals | (36,949) | |||
Depreciation | (8,484) | (7,353) | ||
Investment properties at end of period | 414,168 | 235,974 | 254,061 | |
Buildings | At fair values | ||||
Investment properties | ||||
Investment properties at beginning of period | 781,000 | |||
Investment properties at end of period | 1,071,000 | 781,000 | ||
Buildings | Cost | ||||
Investment properties | ||||
Investment properties at beginning of period | 251,626 | |||
Investment properties at end of period | 508,705 | 251,626 | ||
Buildings | Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (15,652) | |||
Investment properties at end of period | (94,537) | (15,652) | ||
Ownership certificates of investment properties | ||||
Investment properties | ||||
Investment properties at beginning of period | 68,000 | |||
Investment properties at end of period | ¥ 255,000 | ¥ 68,000 | ||
Carrying value to total asset value (as a percent) | 0.13% | 0.13% | 0.03% | |
Land use right | ||||
Investment properties | ||||
Investment properties at beginning of period | ¥ 920,032 | ¥ 1,078,309 | ||
Transfer to property, plant and equipment (note 6) | 239,765 | |||
Disposals | (52,537) | (143,401) | ||
Depreciation | (18,075) | (14,876) | ||
Impairment | (87) | |||
Investment properties at end of period | 1,089,098 | 920,032 | ¥ 1,078,309 | |
Land use right | At fair values | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,287,000 | |||
Investment properties at end of period | 1,269,000 | 1,287,000 | ||
Land use right | Cost | ||||
Investment properties | ||||
Investment properties at beginning of period | 939,015 | |||
Investment properties at end of period | 1,159,343 | 939,015 | ||
Land use right | Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (18,983) | |||
Investment properties at end of period | ¥ (70,245) | ¥ (18,983) |
INVESTMENTS IN JOINT VENTURES_3
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Joint ventures (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
As at January 1 | ¥ 3,393,349 | ¥ 6,007,624 | |||
Share of profits and losses for the year | $ 38,800 | 270,115 | (199,452) | ¥ 8,151 | |
Impairment | (216,953) | ||||
As at December 31 | $ 486,308 | 3,385,582 | 3,393,349 | 6,007,624 | |
Joint venture | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
As at January 1 | 3,393,349 | 6,007,624 | |||
Capital injections | 50,000 | 90,000 | |||
A joint venture changed into a subsidiary | (2,048,780) | ||||
Disposal | (114,604) | ||||
Share of profits and losses for the year | 270,115 | (199,452) | |||
Share of changes in reserves | (8,746) | 2,837 | |||
Cash dividends declared | (222,024) | (236,253) | |||
Impairment | (216,953) | ||||
As at December 31 | 3,385,582 | 3,393,349 | 6,007,624 | ||
Ningxia Zhongning Power Co Ltd | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Percentage of ownership interest transferred | 50.00% | ||||
Guangxi Huayin Aluminum Co., Ltd. | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
As at January 1 | 1,426,655 | ||||
Share of profits and losses for the year | 178,865 | 140,693 | ¥ 426,894 | ||
As at December 31 | 1,403,117 | ¥ 1,426,655 | |||
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disclosure of joint ventures [line items] | ||||||||
Cash and cash equivalents | $ 1,114,538 | ¥ 27,851,106 | ¥ 7,759,190 | $ 2,747,973 | ¥ 19,130,835 | ¥ 23,850,775 | ||
Other current assets | 1,326,821 | 9,237,063 | 9,025,514 | |||||
Total current assets | 6,997,293 | 48,713,752 | 58,901,463 | |||||
Non-current assets | 22,171,983 | 154,356,912 | 142,063,288 | |||||
Financial liabilities | 125,911,427 | |||||||
Total current liabilities | 9,935,610 | 69,169,728 | 74,836,777 | |||||
Non-current liabilities | 9,074,647 | 63,175,876 | 58,458,355 | |||||
Non-controlling interests | 2,307,654 | 16,065,427 | 15,254,312 | |||||
Reconciliation to the Group's interest in the joint venture: | ||||||||
Carrying amount of the investment | 486,308 | 6,007,624 | 3,385,582 | 3,393,349 | ||||
Revenue | 27,302,445 | ¥ 190,074,161 | ¥ 180,241,414 | 181,022,636 | ||||
Gross profit | 1,742,062 | 12,127,885 | 13,211,998 | 14,732,367 | ||||
Profit before income tax | 303,628 | 2,113,801 | 2,264,514 | 3,049,175 | ||||
Income tax (expense)/benefit | 89,879 | 625,720 | 822,519 | 643,706 | ||||
Other comprehensive income | 1,559 | 10,850 | (132,478) | (673,858) | ||||
Total comprehensive income for the year | 215,308 | 1,498,931 | 1,309,517 | 1,731,611 | ||||
Share of profits and losses for the year | 38,800 | 270,115 | (199,452) | 8,151 | ||||
Dividends received from investments accounted for using equity method, classified as investing activities | $ 14,044 | ¥ 97,775 | ¥ 109,914 | |||||
Guangxi Huayin Aluminum Co., Ltd. | ||||||||
Disclosure of joint ventures [line items] | ||||||||
Cash and cash equivalents | 261,447 | 232,022 | ||||||
Other current assets | 1,222,290 | 1,233,669 | ||||||
Total current assets | 1,483,737 | 1,465,691 | ||||||
Non-current assets | 5,249,101 | 5,473,480 | ||||||
Financial liabilities | 1,106,593 | 840,000 | ||||||
Other current liabilities | 960,077 | 961,283 | ||||||
Total current liabilities | 2,066,670 | 1,801,283 | ||||||
Non-current liabilities | 414,299 | 814,691 | ||||||
Net assets | 4,251,869 | 4,323,197 | ||||||
Reconciliation to the Group's interest in the joint venture: | ||||||||
Proportion of ownership interest in joint venture | 33.00% | 33.00% | 33.00% | |||||
Group's share of net assets of the joint venture | 1,403,117 | 1,426,655 | ||||||
Carrying amount of the investment | ¥ 1,403,117 | ¥ 1,426,655 | ||||||
Revenue | ¥ 5,226,893 | ¥ 5,173,801 | 5,547,895 | |||||
Gross profit | 1,303,254 | 979,991 | 1,844,116 | |||||
Interest income | 9,781 | 6,365 | 31,754 | |||||
Depreciation and amortization | 525,109 | 509,556 | 524,090 | |||||
Interest expenses | 63,351 | 77,438 | 132,273 | |||||
Profit before income tax | 621,315 | 504,875 | 1,507,883 | |||||
Income tax (expense)/benefit | 79,300 | 78,827 | 214,264 | |||||
Total comprehensive income for the year | 542,015 | 426,048 | 1,293,619 | |||||
Share of profits and losses for the year | 178,865 | 140,693 | 426,894 | |||||
Dividends received from investments accounted for using equity method, classified as investing activities | ¥ 198,000 | ¥ 132,000 | ¥ 40,260 |
INVESTMENTS IN JOINT VENTURES_5
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Associates (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 19, 2019CNY (¥)director¥ / sharesshares | Dec. 10, 2019CNY (¥)shareholder | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Movements in investments in associates | ||||||
As at January 1 | ¥ 6,363,462 | ¥ 6,935,030 | ||||
Share of profits and losses of associates | $ (7,005) | (48,767) | (39,335) | ¥ 165,249 | ||
As at December 31 | 1,366,371 | 9,512,401 | 6,363,462 | 6,935,030 | ||
Total subscription amount | $ 381,115 | 2,653,244 | 266,300 | 857,317 | ||
Associates | ||||||
Movements in investments in associates | ||||||
As at January 1 | 6,363,462 | 6,935,030 | ||||
Capital injections | 729,368 | 315,300 | ||||
A subsidiary changed into an associate | 16,283 | |||||
Associates changed into subsidiaries | (862,214) | |||||
Disposal | (20,250) | (32,720) | ||||
Share of profits and losses of associates | (48,767) | (39,335) | ||||
Cash dividends declared | (50,314) | (36,157) | ||||
Share of changes in reserves | 7,811 | (4,888) | ||||
As at December 31 | 9,512,401 | ¥ 6,363,462 | ¥ 6,935,030 | |||
Investment to Yunnan Aluminium | ||||||
Movements in investments in associates | ||||||
Investment made in associates | 1,491,736 | |||||
Number of shares subscribed | shares | 314,050,688 | |||||
Price per share | ¥ / shares | ¥ 4.10 | |||||
Total subscription amount | ¥ 1,288,000 | |||||
Ownership interest in associate (in percent) | 10.04% | |||||
Number of director which can be appointed by associates | director | 1 | |||||
Total number of director | director | 11 | |||||
Fair value adjustments | 204,000 | |||||
Investment to Heqing Yixin Aluminum Industry Co., Ltd. | ||||||
Movements in investments in associates | ||||||
Investment made in associates | 941,160 | |||||
Total subscription amount | ¥ 850,000 | |||||
Ownership interest in associate (in percent) | 38.90% | |||||
Fair value adjustments | ¥ 91,000 | |||||
Guangxi Huayin Aluminum Co., Ltd. | ||||||
Movements in investments in associates | ||||||
Number of individual shareholders | shareholder | 3 |
INVESTMENTS IN JOINT VENTURES_6
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Associates not individually material (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of the associates' profits and losses | $ 7,005 | ¥ 48,767 | ¥ 39,335 | ¥ (165,249) | |
Aggregate carrying amount of the Group's investments in the associates | $ 1,366,371 | 6,363,462 | 6,935,030 | ¥ 9,512,401 | |
Investments in associates | 535,610 | 538,787 | |||
Material contingent liabilities relating to the Group's interests in the associates and the associates themselves | 0 | 0 | |||
Associates | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of the associates' profits and losses | 48,767 | 39,335 | |||
Share of the associates' total comprehensive income | ¥ 48,767 | 39,335 | |||
Aggregate carrying amount of the Group's investments in the associates | 6,363,462 | ¥ 6,935,030 | 9,512,401 | ||
Proportionate interests in the associates' capital commitments | 0 | 0 | |||
Investments in associates | ¥ 536,000 | ¥ 539,000 |
INVESTMENTS IN JOINT VENTURES_7
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Joint ventures not individually material (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of profits and losses for the year | $ 38,800 | ¥ 270,115 | ¥ (199,452) | ¥ 8,151 | |
Aggregate carrying amount of the Group's investments in joint ventures | $ 486,308 | 3,393,349 | 6,007,624 | ¥ 3,385,582 | |
Material contingent liabilities relating to the Group's interests in the joint ventures and the joint ventures themselves | 0 | 0 | |||
Joint venture | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of profits and losses for the year | 270,115 | (199,452) | |||
Aggregate carrying amount of the Group's investments in joint ventures | 3,393,349 | ¥ 6,007,624 | 3,385,582 | ||
Aggregated individually immaterial joint ventures | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of profits and losses for the year | 91,250 | (340,145) | |||
Share of the joint ventures' total comprehensive income | ¥ 91,250 | (340,145) | |||
Aggregate carrying amount of the Group's investments in joint ventures | ¥ 1,858,386 | ¥ 1,870,538 |
EQUITY INVESTMENTS DESIGNATED_3
EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)item | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | $ 321,648 | ¥ 2,239,251 | ¥ 1,729,825 | |
Capital contribution commitment | 443,800 | 542,800 | ||
Purchase of investment from equity investments | ¥ (1,848,000) | |||
BOCOMM TRUST | ||||
Disclosure of financial assets [line items] | ||||
Capital contribution commitment | 6,700,000 | 1,650,000 | ||
Size Industry Investment Fund | ||||
Disclosure of financial assets [line items] | ||||
Capital contribution commitment | ¥ 3,300,000 | 3,350,000 | ||
Number of investments | item | 4 | |||
Number of associates | item | 3 | |||
Number of joint ventures | item | 1 | |||
Investments in joint ventures | 5,000,000 | |||
At fair values | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 2,239,251 | 1,729,825 | ||
At fair values | Listed equity investments | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 8,853 | 6,441 | ||
At fair values | Listed equity investments | Dongxing securities Co., Ltd | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 8,853 | 6,441 | ||
At fair values | Unlisted Investments | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 2,230,398 | 1,723,384 | ||
At fair values | Unlisted Investments | Sanmenxia Dachang Mining Co., Ltd | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 20,905 | 20,926 | ||
At fair values | Unlisted Investments | Inner Mongolia Ganqimaodu Port Development Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 30,410 | 18,010 | ||
At fair values | Unlisted Investments | Yinchuan Economic and Technological Development Zone Investment Holding Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 20,000 | 19,306 | ||
At fair values | Unlisted Investments | China Color International Alumina Development Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 6,614 | 9,000 | ||
At fair values | Unlisted Investments | Luoyang Jianyuan Mining Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 4,960 | 4,948 | ||
At fair values | Unlisted Investments | Ningxia Ningdian Logistics Transportation Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 1,640 | 1,194 | ||
At fair values | Unlisted Investments | Chinalco Innovative Development Investment Company Limited | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 365,681 | |||
At fair values | Unlisted Investments | Size Industry Investment Fund | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 1,653,251 | ¥ 1,650,000 | ||
At fair values | Unlisted Investments | Fangchenggang Chisha Pier Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | 700 | |||
At fair values | Unlisted Investments | Xingxian Shengxing Highway Investment Management Co., Ltd. | ||||
Disclosure of financial assets [line items] | ||||
Equity investments designated at fair value through other comprehensive income | ¥ 126,237 |
DEFERRED TAX - Assets (Details)
DEFERRED TAX - Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Movements in deferred tax assets: | |||
As at January 1, | ¥ 1,542,655 | ||
As at December 31, | $ 218,653 | 1,522,216 | ¥ 1,542,655 |
Temporary difference | |||
Movements in deferred tax assets: | |||
As at January 1, | 1,596,696 | ||
Acquisition of subsidiaries | 8,094 | ||
(Charged)/credited to profit or loss | (17,520) | (75,635) | |
As at December 31, | 1,579,176 | 1,596,696 | |
Temporary difference | Restated | |||
Movements in deferred tax assets: | |||
As at January 1, | 1,596,696 | 1,664,237 | |
As at December 31, | 1,596,696 | ||
Provision for impairment | |||
Movements in deferred tax assets: | |||
As at January 1, | 385,843 | ||
Acquisition of subsidiaries | 360 | ||
(Charged)/credited to profit or loss | 59,218 | (139,956) | |
As at December 31, | 445,061 | 385,843 | |
Provision for impairment | Restated | |||
Movements in deferred tax assets: | |||
As at January 1, | 385,843 | 525,439 | |
As at December 31, | 385,843 | ||
Accrued expenses | |||
Movements in deferred tax assets: | |||
As at January 1, | 242,370 | ||
(Charged)/credited to profit or loss | (33,214) | (21,839) | |
As at December 31, | 209,156 | 242,370 | |
Accrued expenses | Restated | |||
Movements in deferred tax assets: | |||
As at January 1, | 242,370 | 264,209 | |
As at December 31, | 242,370 | ||
Tax losses | |||
Movements in deferred tax assets: | |||
As at January 1, | 616,237 | ||
(Charged)/credited to profit or loss | (40,047) | 76,338 | |
As at December 31, | 576,190 | 616,237 | |
Tax losses | Restated | |||
Movements in deferred tax assets: | |||
As at January 1, | 616,237 | 539,899 | |
As at December 31, | 616,237 | ||
Unrealized profit at consolidation | |||
Movements in deferred tax assets: | |||
As at January 1, | 169,876 | ||
(Charged)/credited to profit or loss | (521) | 3,833 | |
As at December 31, | 169,355 | 169,876 | |
Unrealized profit at consolidation | Restated | |||
Movements in deferred tax assets: | |||
As at January 1, | 169,876 | 166,043 | |
As at December 31, | 169,876 | ||
Others | |||
Movements in deferred tax assets: | |||
As at January 1, | 182,370 | ||
Acquisition of subsidiaries | 7,734 | ||
(Charged)/credited to profit or loss | (2,956) | 5,989 | |
As at December 31, | 179,414 | 182,370 | |
Others | Restated | |||
Movements in deferred tax assets: | |||
As at January 1, | ¥ 182,370 | 168,647 | |
As at December 31, | ¥ 182,370 |
DEFERRED TAX - Liabilities (Det
DEFERRED TAX - Liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Movements in deferred tax liabilities: | |||
As at January 1, | ¥ 1,812,805 | ||
As at December 31, | $ 246,020 | 1,712,739 | ¥ 1,812,805 |
Temporary difference | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,866,846 | 1,055,413 | |
Exchange realignment | 416 | 1,353 | |
Credited to other comprehensive income | 14,642 | 3,769 | |
Acquisition of a subsidiaries | 822,229 | ||
(Credited)/charged to profit or loss | (112,205) | (8,380) | |
As at December 31, | 1,769,699 | 1,866,846 | |
Deferred tax liability associated with investments in the Group's | 827,000 | 438,000 | |
Temporary difference | Restated | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,866,846 | ||
As at December 31, | 1,866,846 | ||
Interest capitalization | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 43,832 | 52,934 | |
(Credited)/charged to profit or loss | (5,825) | (9,102) | |
As at December 31, | 38,007 | 43,832 | |
Fair value changes of financial assets | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 5,606 | 5,972 | |
Credited to other comprehensive income | 14,642 | 3,769 | |
(Credited)/charged to profit or loss | (12,517) | 3,403 | |
As at December 31, | 7,731 | 5,606 | |
Fair value changes of financial assets | Restated | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 5,606 | ||
As at December 31, | 5,606 | ||
Depreciation and amortization | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 32,489 | 7,659 | |
(Credited)/charged to profit or loss | (8,616) | 24,830 | |
As at December 31, | 23,873 | 32,489 | |
Fair value adjustments arising from acquisition of subsidiaries | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,784,919 | 988,848 | |
Exchange realignment | 416 | 1,353 | |
Acquisition of a subsidiaries | 822,229 | ||
(Credited)/charged to profit or loss | (85,247) | (27,511) | |
As at December 31, | ¥ 1,700,088 | ¥ 1,784,919 |
DEFERRED TAX - Balances (Detail
DEFERRED TAX - Balances (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
DEFERRED TAX | ||
Net deferred tax assets | ¥ 1,522,216 | ¥ 1,542,655 |
Net deferred tax liabilities | 1,712,739 | 1,812,805 |
Deferred tax assets not recognised | 1,467,000 | 2,634,000 |
Accumulated tax losses | 6,210,282 | 11,387,469 |
Deferred tax assets for deductible temporary differences | 2,287,000 | 1,660,000 |
Deductible temporary differences | ¥ 9,160,000 | ¥ 7,992,000 |
DEFERRED TAX - Unprovided tax l
DEFERRED TAX - Unprovided tax losses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Tax losses | ||
Unprovided tax losses | ¥ 6,210,282 | ¥ 11,387,469 |
1 to 2 Years | ||
Tax losses | ||
Unprovided tax losses | 6,753,096 | |
2 and 3 Years | ||
Tax losses | ||
Unprovided tax losses | 690,646 | 711,878 |
2021 | ||
Tax losses | ||
Unprovided tax losses | 958,188 | 975,081 |
2022 | ||
Tax losses | ||
Unprovided tax losses | 1,211,002 | 1,211,002 |
2023 | ||
Tax losses | ||
Unprovided tax losses | 997,376 | ¥ 1,736,412 |
2024 | ||
Tax losses | ||
Unprovided tax losses | ¥ 2,353,070 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
OTHER NON-CURRENT ASSETS | |||
Other long-term receivables | ¥ 128,673 | ¥ 204,718 | |
Prepayment for mining rights | 813,822 | 808,736 | |
Long-term prepaid expenses | 648,983 | 667,772 | |
Deferred losses for sales and leaseback transactions | 766,548 | 1,323,221 | |
Others | 849,817 | 1,438,198 | |
Total non-financial assets | 3,079,170 | 4,237,927 | |
Total other non-current assets | $ 460,778 | ¥ 3,207,843 | ¥ 4,442,645 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Inventories | ||||
Total inventories | $ 2,803,214 | ¥ 19,515,420 | ¥ 20,459,668 | |
Cost | ||||
Inventories | ||||
Raw materials | 6,825,650 | 8,362,697 | ||
Work-in-progress | 7,847,599 | 8,684,506 | ||
Finished goods | 4,501,633 | 3,280,641 | ||
Spare parts | 842,734 | 879,794 | ||
Packaging materials and others | 57,870 | 63,227 | ||
Total inventories | 20,075,486 | 21,270,865 | ||
Provision for impairment | ||||
Inventories | ||||
Total inventories | ¥ (560,066) | ¥ (811,197) | ¥ (457,252) |
INVENTORIES - Movements in the
INVENTORIES - Movements in the provision for impairment of inventories (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Movements in the provision for impairment of inventories | |||
As at January 1, | ¥ (20,459,668) | ||
As at December 31, | $ (2,803,214) | (19,515,420) | ¥ (20,459,668) |
Inventories pledged for bank and other borrowings | 0 | 0 | |
Provision for impairment | |||
Movements in the provision for impairment of inventories | |||
As at January 1, | 811,197 | 457,252 | |
Provision for impairment of inventories | (1,503,406) | (2,413,098) | |
Disposal of subsidiaries | (772) | ||
Reversal arising from increase in net realizable value | (340,134) | (165,510) | |
Written off upon sales of inventories | (1,413,631) | (1,893,643) | |
As at December 31, | ¥ 560,066 | ¥ 811,197 |
TRADE AND NOTES RECEIVABLES (De
TRADE AND NOTES RECEIVABLES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
TRADE AND NOTES RECEIVABLES | ||||
Trade receivables | ¥ 4,559,112 | ¥ 5,209,535 | ||
Notes receivable | 2,834,011 | 2,894,482 | ||
Exposure to credit risk on loan commitments and financial guarantee contracts | (714,857) | (659,261) | ||
Total trade and notes receivables | $ 1,061,956 | 7,393,123 | 8,104,017 | |
Notes receivable | 667,190 | 933,551 | ||
Minimum | ||||
TRADE AND NOTES RECEIVABLES | ||||
Trade receivables term (in years) | 3 months | |||
Maximum | ||||
TRADE AND NOTES RECEIVABLES | ||||
Trade receivables term (in years) | 12 months | |||
Associates | ||||
TRADE AND NOTES RECEIVABLES | ||||
Total trade and notes receivables | 30 | 7,000 | ||
Joint venture | ||||
TRADE AND NOTES RECEIVABLES | ||||
Total trade and notes receivables | 788,000 | 820,000 | ||
USD | ||||
TRADE AND NOTES RECEIVABLES | ||||
Total trade and notes receivables | 1,111,000 | 1,403,000 | ||
Cost | ||||
TRADE AND NOTES RECEIVABLES | ||||
Trade receivables | 5,273,969 | 5,868,796 | ||
Provision for impairment | ||||
TRADE AND NOTES RECEIVABLES | ||||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ (714,857) | ¥ (659,261) | ¥ (546,102) |
TRADE AND NOTES RECEIVABLES - A
TRADE AND NOTES RECEIVABLES - Ageing analysis of trade and notes receivables (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
TRADE AND NOTES RECEIVABLES | |||
Provision for impairment | ¥ (714,857) | ¥ (659,261) | |
Trade and notes receivables | 4,559,112 | 5,209,535 | |
1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Provision for impairment | (2,496) | ||
Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 5,273,969 | 5,868,796 | |
Cost | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 2,907,407 | 3,320,735 | |
Cost | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 742,477 | 906,302 | |
Cost | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 377,836 | 158,162 | |
Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 1,246,249 | 1,483,597 | |
Provision for impairment | |||
TRADE AND NOTES RECEIVABLES | |||
Provision for impairment | ¥ (714,857) | ¥ (659,261) | ¥ (546,102) |
TRADE AND NOTES RECEIVABLES - C
TRADE AND NOTES RECEIVABLES - Credit risk exposure (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | $ 1,061,956 | ¥ 7,393,123 | ¥ 8,104,017 |
Trade receivables | 4,559,112 | 5,209,535 | |
Exposure to credit risk on loan commitments and financial guarantee contracts | 714,857 | 659,261 | |
1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 2,496 | ||
Expected credit loss rate | 21.29% | 21.29% | |
Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | ¥ 5,273,969 | 5,868,796 | |
Cost | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 2,907,407 | 3,320,735 | |
Cost | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 11,722 | ||
Trade receivables | 742,477 | 906,302 | |
Cost | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 377,836 | 158,162 | |
Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 1,246,249 | 1,483,597 | |
Stage 3 | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 429,723 | 212,964 | |
Stage 3 | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 4,140,046 | 4,249,552 | |
Total | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 285,134 | 446,297 | |
Total | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 1,133,923 | 1,619,244 | |
Alumina and primary aluminum | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 220,716 | 384,527 | |
Alumina and primary aluminum | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 1,910 | ¥ 3,696 | |
Expected credit loss rate | 0.92% | 0.92% | 0.92% |
Alumina and primary aluminum | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 5,305 | ¥ 6,179 | |
Expected credit loss rate | 11.08% | 11.08% | 11.08% |
Alumina and primary aluminum | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 18,643 | ¥ 14,893 | |
Expected credit loss rate | 90.01% | 90.01% | 90.01% |
Alumina and primary aluminum | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 194,858 | ¥ 359,759 | |
Expected credit loss rate | 94.87% | 94.87% | 94.87% |
Alumina and primary aluminum | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 481,592 | ¥ 853,216 | |
Alumina and primary aluminum | Cost | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 207,602 | 401,691 | |
Alumina and primary aluminum | Cost | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 47,883 | 55,766 | |
Alumina and primary aluminum | Cost | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 20,712 | 16,546 | |
Alumina and primary aluminum | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 205,395 | 379,213 | |
Energy | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 21,564 | 13,977 | |
Energy | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 13,343 | ¥ 3,388 | |
Expected credit loss rate | 3.83% | 3.83% | 3.83% |
Energy | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 685 | ||
Expected credit loss rate | 21.28% | ||
Energy | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 2,170 | ¥ 3,688 | |
Expected credit loss rate | 23.92% | 23.92% | 23.92% |
Energy | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3,555 | ¥ 6,216 | |
Expected credit loss rate | 48.91% | 48.91% | 48.91% |
Energy | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 376,463 | ¥ 119,806 | |
Energy | Cost | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 348,399 | 88,462 | |
Energy | Cost | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 3,217 | ||
Energy | Cost | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 9,073 | 15,417 | |
Energy | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 7,269 | 12,710 | |
Trading | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 15,760 | 4,522 | |
Trading | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 159 | ¥ 662 | |
Expected credit loss rate | 0.14% | 0.14% | 0.14% |
Trading | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 70 | ||
Expected credit loss rate | 1.69% | 1.69% | 1.68% |
Trading | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 41 | ¥ 3 | |
Expected credit loss rate | 4.05% | 4.05% | 3.80% |
Trading | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 15,560 | ¥ 3,787 | |
Expected credit loss rate | 19.50% | 19.50% | 19.50% |
Trading | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 194,390 | ¥ 496,795 | |
Trading | Cost | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 113,596 | 473,153 | |
Trading | Cost | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 4,146 | ||
Trading | Cost | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 1,001 | 74 | |
Trading | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 79,793 | 19,422 | |
Corporate and other operating segments | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 27,094 | 43,271 | |
Corporate and other operating segments | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3,117 | ¥ 6,539 | |
Expected credit loss rate | 6.02% | 6.02% | 6.02% |
Corporate and other operating segments | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 12,831 | ¥ 7,767 | |
Expected credit loss rate | 70.78% | 70.78% | 70.78% |
Corporate and other operating segments | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 5,127 | ¥ 3,823 | |
Expected credit loss rate | 94.96% | 94.96% | 94.96% |
Corporate and other operating segments | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 6,019 | ¥ 25,142 | |
Expected credit loss rate | 97.45% | 97.45% | 97.45% |
Corporate and other operating segments | Cost | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 81,478 | ¥ 149,427 | |
Corporate and other operating segments | Cost | Within 1 Year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 51,774 | 108,627 | |
Corporate and other operating segments | Cost | 1 to 2 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 18,129 | 10,974 | |
Corporate and other operating segments | Cost | 2 and 3 Years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 5,399 | 4,026 | |
Corporate and other operating segments | Cost | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 6,176 | ¥ 25,800 |
TRADE AND NOTES RECEIVABLES - M
TRADE AND NOTES RECEIVABLES - Movements on the provision for impairment of trade receivables (Details) - CNY (¥) ¥ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Reconciliation of changes in other provisions | |||
Exposure bgn balance | ¥ 659,261 | ||
Effect of adoption of IFRS 9 | ¥ (139,436) | ||
At beginning of year | ¥ 36,226,354 | ||
Exposure ending balance | 714,857 | 659,261 | |
Carrying value of derecognized discounted notes receivable | 34,506,000 | 29,273,000 | |
Carrying amount of not derecognized notes receivable accepted by banks in the PRC endorsed to certain of its suppliers in order to settle the trade payables due to suppliers | 357,000 | 444,000 | |
Gains or losses recognised from the continuing involvement | 0 | ||
Provision for impairment | |||
Reconciliation of changes in other provisions | |||
Exposure bgn balance | ¥ 546,102 | 659,261 | 546,102 |
Effect of adoption of IFRS 9 | 112,407 | ||
At beginning of year | (659,261) | (658,509) | |
Provision for impairment | 236,238 | 64,544 | |
Written off | (97,554) | (33,469) | |
Reversal | (83,095) | (20,466) | |
Others (Note) | 7 | (9,857) | |
Exposure ending balance | ¥ 714,857 | ¥ 659,261 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Financial assets | |||
Deposits paid to suppliers | ¥ 501,918 | ¥ 317,946 | |
Dividends receivable | 82,796 | 47,167 | |
Receivables from disposal of businesses and assets | 90,399 | 134,789 | |
Entrusted loans and loans receivable from third parties | 1,544,070 | 1,645,205 | |
Entrusted loans and loans receivable from related parties | 1,309,095 | 1,297,892 | |
Receivables from disposal of properties | 1,948,434 | 1,881,513 | |
Interest receivables | 40,936 | 40,936 | |
Recoverable reimbursement for freight charges | 223,884 | 415,232 | |
Receivable of governments grants | 517,365 | 129,977 | |
Other financial assets | 1,185,466 | 787,396 | |
Financial assets included in other current assets | 7,444,363 | 6,698,053 | |
Financial assets included in other current assets, net of provision for impairment | 5,723,924 | 4,933,985 | |
Advances to employees | 17,207 | 23,744 | |
Deductible input value added tax receivables | 2,424,004 | 2,189,470 | |
Prepaid income tax | 93,093 | 162,103 | |
Prepayments to related parties for purchases | 229,324 | 586,312 | |
Prepayments to suppliers for purchases and others | 634,548 | 964,158 | |
Other receivables | 117,678 | 169,881 | |
Other current assets, excluded financial assets | 3,515,854 | 4,095,668 | |
Other current assets, excluded financial assets, net of provision for impairment | 3,513,139 | 4,091,529 | |
Total other current assets | $ 1,326,821 | 9,237,063 | 9,025,514 |
USD | |||
Financial assets | |||
Other receivables | 37,000 | 48,000 | |
RMB | |||
Financial assets | |||
Other financial assets | 120 | ||
Other current assets | |||
Financial assets | |||
Less: impairment allowance | (1,720,439) | (1,764,068) | |
Less: provision for impairment | ¥ (2,715) | ¥ (4,139) |
OTHER CURRENT ASSETS - Analysis
OTHER CURRENT ASSETS - Analysis of financial assets included in other current assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | ¥ 7,444,363 | ¥ 6,698,053 |
Financial assets included in other current assets, net of provision for impairment | 5,723,924 | 4,933,985 |
Within 1 Year | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 1,628,723 | 1,456,520 |
1 to 2 Years | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 752,731 | 283,844 |
2 and 3 Years | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 151,974 | 844,262 |
Over 3 years | ||
OTHER CURRENT ASSETS | ||
Financial assets included in other current assets | 4,910,935 | 4,113,427 |
Other current assets | ||
OTHER CURRENT ASSETS | ||
Less: provision for impairment | ¥ (1,720,439) | ¥ (1,764,068) |
OTHER CURRENT ASSETS - Movement
OTHER CURRENT ASSETS - Movements in the provision for impairment of other current assets (Details) - CNY (¥) ¥ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Provision for impairment of other current assets | |||
Effect of adoption of IFRS 9 | ¥ (139,436) | ||
At beginning of year | ¥ 36,226,354 | ||
Impairment on other current assets | Other current assets | |||
Provision for impairment of other current assets | |||
As at January 1, | ¥ 1,677,277 | ¥ 1,768,207 | 1,677,277 |
Effect of adoption of IFRS 9 | 38,502 | ||
At beginning of year | 1,768,207 | 1,715,779 | |
Provision for impairment | 42,898 | 65,494 | |
Write off | (62,319) | (6,117) | |
Reversal | (26,290) | (1,731) | |
Others | 658 | (5,218) | |
As at December 31, | ¥ 1,723,154 | ¥ 1,768,207 |
OTHER CURRENT ASSETS - Impairme
OTHER CURRENT ASSETS - Impairment under IFRS 9 (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | ¥ 3,515,854 | ¥ 4,095,668 |
Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 1,720,439 | 1,764,068 |
Impaired financial assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 1,720,439 | 1,764,068 |
Impaired financial assets | Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | 7,444,363 | 6,639,593 |
Impaired financial assets | 12-month expected credit losses | Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | 1,632,766 | 1,098,455 |
Impaired financial assets | Lifetime expected credit losses | Stage 2 | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 82,061 | 88,974 |
Impaired financial assets | Lifetime expected credit losses | Stage 2 | Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | 4,052,681 | 3,744,612 |
Impaired financial assets | Lifetime expected credit losses | Stage 3 | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Expected credit losses | 1,638,378 | 1,675,094 |
Impaired financial assets | Lifetime expected credit losses | Stage 3 | Cost | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | ¥ 1,758,916 | ¥ 1,796,526 |
CASH AND CASH EQUIVALENTS AND_3
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH - Total (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||||||
Restricted cash | ¥ 1,305,781 | ¥ 2,165,288 | ||||
Cash and cash equivalents | $ 1,114,538 | 7,759,190 | $ 2,747,973 | 19,130,835 | ¥ 27,851,106 | ¥ 23,850,775 |
Total cash and cash equivalents, and cash and cash equivalents restricted | ¥ 9,064,971 | ¥ 21,296,123 |
CASH AND CASH EQUIVALENTS AND_4
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH - Bank balances and cash on hand of the group (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Bank balances and cash on hand of the group | ||
Cash and cash equivalents | ¥ 9,064,971 | ¥ 21,296,123 |
RMB | ||
Bank balances and cash on hand of the group | ||
Cash and cash equivalents | 7,858,867 | 18,026,265 |
USD | ||
Bank balances and cash on hand of the group | ||
Cash and cash equivalents | 1,195,720 | 3,256,625 |
HKD | ||
Bank balances and cash on hand of the group | ||
Cash and cash equivalents | 4,423 | 8,321 |
EUR | ||
Bank balances and cash on hand of the group | ||
Cash and cash equivalents | 1,943 | 371 |
AUD | ||
Bank balances and cash on hand of the group | ||
Cash and cash equivalents | 2,552 | |
IDR | ||
Bank balances and cash on hand of the group | ||
Cash and cash equivalents | ¥ 4,018 | ¥ 1,989 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) ¥ / shares in Units, ¥ in Billions | Jan. 31, 2018CNY (¥)item | Dec. 31, 2019¥ / sharesshares | Feb. 25, 2019shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017¥ / sharesshares |
SHARE CAPITAL | |||||
Number of investors who sold their shares | item | 8 | ||||
Shares authorized (in shares) | shares | 17,022,672,951 | 17,022,672,951 | 17,022,672,951 | ||
Number of shares issued | shares | 14,903,798,236 | 2,118,874,715 | 14,903,798,236 | 14,903,798,236 | |
Shares outstanding (in shares) | shares | 14,903,798,236 | 14,903,798,236 | 14,903,798,236 | ||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | ¥ 1 | ||
Target Companies | |||||
SHARE CAPITAL | |||||
Consideration transferred | ¥ | ¥ 2.1 | ||||
Fair value of investment | ¥ | ¥ 12.7 | ||||
Carrying values of the Transferors' non-controlling interests derecognized, and were transferred to capital reserve | ¥ | ¥ 10.7 |
INTEREST BEARING LOANS AND BORR
INTEREST BEARING LOANS AND BORROWINGS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
INTEREST BEARING LOANS AND BORROWINGS | |||
Finance lease payables | ¥ 4,081,270 | ||
Lease liabilities | ¥ 8,369,262 | 11,010,323 | |
Bank and other loans | 38,835,887 | 46,140,740 | |
Long-term loans and borrowings | 63,941,904 | 60,316,871 | |
Current portion of lease liabilities | (1,358,654) | ||
Current portion of finance lease payables | (2,328,358) | ||
Current portion of medium-term bonds and long-term bonds | (396,727) | ||
Current portion of long-term bank and other loans | (3,339,687) | (3,384,400) | |
Non-current portion of long-term loans and borrowings | $ 8,509,805 | 59,243,563 | 54,207,386 |
Secured | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Bank and other loans | 13,254,721 | 12,608,727 | |
Guaranteed | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Bank and other loans | 3,948,400 | 3,040,400 | |
Unsecured | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Bank and other loans | 21,632,766 | 30,491,613 | |
Medium-term notes and bonds and long-term bonds and private placement notes | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Long-term loans and borrowings | ¥ 16,736,755 | ¥ 10,094,861 |
INTEREST BEARING LOANS AND BO_2
INTEREST BEARING LOANS AND BORROWINGS - Short-term loans and borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Short-term loans and borrowings | |||
Outstanding short-term borrowings | ¥ 9,331,488 | ¥ 500,000 | |
Bank and other loans, current | 21,238,166 | 39,348,100 | |
Gold leasing arrangements | 7,018,609 | 1,607,905 | |
Current portion of lease liabilities | 1,358,654 | ||
Current portion of finance lease payables | 2,328,358 | ||
Current portion of medium-term notes | 396,727 | ||
Current portion of long-term bank and other loans | 3,339,687 | 3,384,400 | |
Interest-bearing loans and borrowings | $ 6,074,090 | 42,286,604 | 47,565,490 |
JPY | |||
Short-term loans and borrowings | |||
Interest-bearing loans and borrowings | 17,000 | 19,000 | |
USD | |||
Short-term loans and borrowings | |||
Interest-bearing loans and borrowings | 4,006,000 | 3,984,000 | |
Secured | |||
Short-term loans and borrowings | |||
Bank and other loans, current | 465,000 | 1,220,680 | |
Guaranteed | |||
Short-term loans and borrowings | |||
Bank and other loans, current | 240,000 | ||
Unsecured | |||
Short-term loans and borrowings | |||
Bank and other loans, current | ¥ 20,773,166 | ¥ 37,887,420 |
INTEREST BEARING LOANS AND BO_3
INTEREST BEARING LOANS AND BORROWINGS - Other information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
INTEREST BEARING LOANS AND BORROWINGS | |||
Interest-bearing loans and borrowings | $ 6,074,090 | ¥ 42,286,604 | ¥ 47,565,490 |
JPY | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Interest-bearing loans and borrowings | 17,000 | 19,000 | |
USD | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Interest-bearing loans and borrowings | 4,006,000 | 3,984,000 | |
Shandong Aluminum, Shanxi Aluminum Plant and China Great Wall Aluminum Corporation | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Interest-bearing loans and borrowings | 9,867,000 | ¥ 4,373,000 | |
Shandong Huayu | |||
INTEREST BEARING LOANS AND BORROWINGS | |||
Interest-bearing loans and borrowings | ¥ 649,000 |
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, 2019 | Dec. 31, 2018 |
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 38,835,887 | ¥ 46,140,740 |
Within 1 Year | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 3,339,687 | 3,384,400 |
1 to 2 Years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 7,525,775 | 7,377,956 |
Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 9,159,028 | 16,593,587 |
Over 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 18,811,397 | ¥ 18,784,797 |
Bank and other loans | ||
Maturity of long-term bank and other loans | ||
Weighted average interest (as a percent) | 5.20% | 4.78% |
Loans from banks and other financial institutions | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 38,818,493 | ¥ 46,121,547 |
Loans from banks and other financial institutions | Within 1 Year | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 3,337,202 | 3,382,325 |
Loans from banks and other financial institutions | 1 to 2 Years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 7,523,290 | 7,375,557 |
Loans from banks and other financial institutions | Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 9,151,573 | 16,586,390 |
Loans from banks and other financial institutions | Over 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 18,806,428 | 18,777,275 |
Other loans | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 17,394 | 19,193 |
Other loans | Within 1 Year | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 2,485 | 2,075 |
Other loans | 1 to 2 Years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 2,485 | 2,399 |
Other loans | Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | 7,455 | 7,197 |
Other loans | Over 5 years | ||
Maturity of long-term bank and other loans | ||
Bank and other loans | ¥ 4,969 | ¥ 7,522 |
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, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Long-term loans and borrowings | ¥ 63,941,904 | ¥ 60,316,871 |
Medium-term notes and bonds and long-term bonds and private placement notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Long-term loans and borrowings | ¥ 16,736,755 | 10,094,861 |
2018 medium-term 5.84% note | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.84% | |
Long-term loans and borrowings | ¥ 1,992,339 | 1,986,418 |
2019 Medium-Term 4.31% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 4.31% | |
Long-term loans and borrowings | ¥ 1,982,228 | |
2016 private placement 5.12% note | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.12% | |
Long-term loans and borrowings | 396,727 | |
2018 medium-term 4.66% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 4.66% | |
Long-term loans and borrowings | ¥ 1,098,218 | 1,097,003 |
2018 medium-term 5.06% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.06% | |
Long-term loans and borrowings | ¥ 898,315 | 897,820 |
2018 medium-term 4.30% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 4.30% | |
Long-term loans and borrowings | ¥ 1,397,319 | 1,395,970 |
2018 medium-term 4.57% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 4.57% | |
Long-term loans and borrowings | ¥ 1,596,192 | 1,595,311 |
2019 Medium-Term 3.84% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 3.84% | |
Long-term loans and borrowings | ¥ 1,998,604 | |
2019 Medium-Term 3.50% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 3.50% | |
Long-term loans and borrowings | ¥ 1,997,097 | |
2019 Medium-Term 4.99% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 4.99% | |
Long-term loans and borrowings | ¥ 999,462 | |
2018 Hong Kong dollar medium-term 5.25% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.25% | |
Long-term loans and borrowings | ¥ 2,776,981 | ¥ 2,725,612 |
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, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Outstanding short-term borrowings | ¥ 9,331,488 | ¥ 500,000 |
Short-term bank and other loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 4.29% | 4.52% |
Outstanding short-term borrowings | ¥ 9,331,488 | ¥ 500,000 |
2018 Ningxia short-term 5.00% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 5.00% | |
Outstanding short-term borrowings | ¥ 500,000 | |
2019 Ningxia short-term 3.97% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 3.97% | |
Outstanding short-term borrowings | ¥ 300,000 | |
2019 short-term 2.45% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 2.45% | |
Outstanding short-term borrowings | ¥ 1,008,161 | |
2019 short-term 2.63% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 2.63% | |
Outstanding short-term borrowings | ¥ 2,013,127 | |
2019 short-term 2.00% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 2.00% | |
Outstanding short-term borrowings | ¥ 3,008,384 | |
2019 short-term 2.30% bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate (as a percent) | 2.30% | |
Outstanding short-term borrowings | ¥ 3,001,816 |
INTEREST BEARING LOANS AND BO_7
INTEREST BEARING LOANS AND BORROWINGS - Guaranteed interest-bearing loans and borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | ¥ 38,835,887 | ¥ 46,140,740 |
Bank and other loans, current | 21,238,166 | 39,348,100 |
Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 3,948,400 | 3,040,400 |
Bank and other loans, current | 240,000 | |
Ningxia Energy | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 1,274,400 | 892,400 |
Yinxing Energy | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 46,000 | 70,000 |
Lanzhou Aluminum Factory | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 150,000 | |
Baotou Aluminum Co. Ltd and Baotou Communications Investment Group Co. Ltd | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 1,250,000 | 1,600,000 |
The Company and Hangzhou Jinjiang Group Co. Ltd | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 123,500 | |
The Company and Hangzhou Jinjiang Group Limited Company [Member] | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 10,000 | 246,000 |
Qingzhen Industrial Investment Co., Ltd.*("Qingzhen Investment") | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 47,250 | 116,000 |
Guizhou Investment | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | 47,250 | 116,000 |
China Great Wall Aluminum Co., Ltd | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans, current | 40,000 | |
Size Industry Investment Fund | Guaranteed | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans | ¥ 1,000,000 | |
Hangzhou Jinjiang, Qingzhen Investment and Guizhou Investment | ||
Disclosure of detailed information about borrowings [line items] | ||
Bank and other loans, current | ¥ 200,000 |
INTEREST BEARING LOANS AND BO_8
INTEREST BEARING LOANS AND BORROWINGS - Gold leasing agreements (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disclosure of detailed information about borrowings [line items] | ||||
Proceeds from a gold leasing arrangement | $ 994,263 | ¥ 6,921,860 | ¥ 2,323,105 | ¥ 7,804,083 |
Repayment of principal lease amount | ¥ 1,608,000 | |||
Minimum | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Lease agreement term | 6 months | 6 months | ||
Annual lease fee rates (as a percent) | 3.70% | 3.70% | ||
Maximum | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Lease agreement term | 12 months | 12 months | ||
Annual lease fee rates (as a percent) | 4.50% | 4.50% | ||
Fixed interest rate | Minimum | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate (as a percent) | 3.70% | 3.70% | 4.10% | |
Fixed interest rate | Maximum | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% |
LEASE - Lease contracts (Detail
LEASE - Lease contracts (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 |
Plant and machinery | Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term | 3 years |
Plant and 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 - Land use rights (before
LEASE - Land use rights (before 1 January 2019) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Land Use Rights | ¥ 4,306,865 | |
Land use right | Restatement | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Land Use Rights | 4,306,865 | ¥ 3,604,201 |
Land use right | Restatement | Leases less than 10 years | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Land Use Rights | 768,153 | |
Land use right | Restatement | Between 10 to 50 years | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Land Use Rights | 2,753,882 | |
Land use right | Restatement | Over 50 years | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Land Use Rights | ¥ 784,830 |
LEASE - Land use rights 2018 re
LEASE - Land use rights 2018 restated (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
As at December 31 | ¥ 4,306,865 |
Land use rights | 328,116 |
Restatement | Land use right | |
Disclosure of quantitative information about right-of-use assets [line items] | |
As at January 1 | 3,604,201 |
Additions | 2,838 |
Acquisition of subsidiaries | 460,638 |
Transfer from property, plant and equipment | 382,242 |
Government grants | (34,174) |
Disposal of Subsidiaries, Land Use Rights | (728) |
Amortization | (108,152) |
As at December 31 | ¥ 4,306,865 |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Additions | ¥ 1,247,858 | ¥ 2,838 | ¥ 59,215 | |
Transfer to investment properties | (239,765) | |||
Transfer to property, plant and equipment | (1,674,260) | |||
Government grants | (107,441) | |||
Contract modification | (182,865) | |||
Disposal of subsidiaries | (52,668) | |||
Depreciation of right-of-use assets | (1,075,825) | |||
Impairment losses | (1,448) | |||
Balance at the end | $ 2,282,518 | 15,890,437 | ||
Right of Use Assets Pledged as Security | 373,048 | |||
Initial recognition | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | 17,976,851 | |||
Balance at the end | 17,976,851 | |||
Buildings | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Additions | 21,203 | |||
Contract modification | (45,507) | |||
Depreciation of right-of-use assets | (84,940) | |||
Balance at the end | 287,255 | |||
Buildings | Initial recognition | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | 396,499 | |||
Balance at the end | 396,499 | |||
Plant and machinery | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Additions | 11,606 | |||
Transfer to property, plant and equipment | (1,674,260) | |||
Government grants | (107,441) | |||
Depreciation of right-of-use assets | (601,891) | |||
Balance at the end | 3,757,785 | |||
Plant and machinery | Initial recognition | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | 6,129,771 | |||
Balance at the end | 6,129,771 | |||
Land use right | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Additions | 1,215,049 | |||
Transfer to investment properties | (239,765) | |||
Contract modification | (137,358) | |||
Disposal of subsidiaries | (52,668) | |||
Depreciation of right-of-use assets | (388,994) | |||
Impairment losses | (1,448) | |||
Balance at the end | 11,845,397 | |||
Carrying amount of land use rights in process of applying for certificates | ¥ 74,000 | ¥ 687,000 | ||
Carrying value of land parcels as a percent of total asset | 0.04% | 0.04% | 0.34% | |
Land use right | Initial recognition | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Balance at the beginning | ¥ 11,450,581 | |||
Balance at the end | ¥ 11,450,581 |
LEASE - Carrying amount of leas
LEASE - Carrying amount of lease liabilities and movement during the year (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
Lease liabilities | |
Lease liabilities | ¥ 11,010,323 |
New leases | 82,370 |
Contract modification | (178,575) |
Accretion of interest recognized during the year | 487,249 |
Payments | (3,032,106) |
Lease liabilities | 8,369,262 |
Current portion | 1,358,654 |
Non-current portion | ¥ 7,010,608 |
LEASE - Amount recognized in pr
LEASE - Amount recognized in profit and loss in relation to leases (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
LEASE | |
Interest on lease liabilities | ¥ 487,249 |
Depreciation charge of right-of-use assets | 1,075,825 |
Expense relating to short-term leases and other leases with remaining lease terms ended on or before 31 December 2019 | 63,626 |
Expense relating to leases of low-value assets | 1,800 |
Total amount recognized in profit or loss | ¥ 1,628,500 |
LEASE (Details)
LEASE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
LEASE | |||
Rental income recognized | ¥ 318 | ¥ 240 | ¥ 153 |
FINANCE LEASE PAYABLES (Details
FINANCE LEASE PAYABLES (Details) ¥ in Thousands | Dec. 31, 2018CNY (¥) |
Disclosure of finance lease and operating lease by lessee | |
Minimum finance lease payments payable, at present value IFRS 16 | ¥ 4,081,270 |
Total minimum lease payments | 4,401,097 |
Future finance charges | (319,827) |
Total net finance lease payables | 4,081,270 |
Portion classified as current liabilities | (2,328,358) |
Non-current portion | 1,752,912 |
Within 1 Year | |
Disclosure of finance lease and operating lease by lessee | |
Minimum finance lease payments payable, at present value IFRS 16 | 2,328,358 |
Total minimum lease payments | 2,518,653 |
Total net finance lease payables | 2,328,358 |
1 to 2 Years | |
Disclosure of finance lease and operating lease by lessee | |
Minimum finance lease payments payable, at present value IFRS 16 | 1,075,050 |
Total minimum lease payments | 1,161,490 |
Total net finance lease payables | 1,075,050 |
In the third to fifth years, inclusive | |
Disclosure of finance lease and operating lease by lessee | |
Minimum finance lease payments payable, at present value IFRS 16 | 664,889 |
Total minimum lease payments | 707,716 |
Total net finance lease payables | 664,889 |
Over 5 years | |
Disclosure of finance lease and operating lease by lessee | |
Minimum finance lease payments payable, at present value IFRS 16 | 12,973 |
Total minimum lease payments | 13,238 |
Total net finance lease payables | ¥ 12,973 |
FINANCE LEASE PAYABLES - Sale a
FINANCE LEASE PAYABLES - Sale and leaseback transactions with related parties (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Disclosure of finance lease and operating lease by lessee IAS 17 [line items] | |
Sale and leaseback lease terms | 1 year |
Maximum | |
Disclosure of finance lease and operating lease by lessee IAS 17 [line items] | |
Sale and leaseback lease terms | 6 years |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Financial liabilities | |||||
Long-term payables for mining rights | ¥ 788,133 | ¥ 1,108,075 | |||
Other financial liabilities | 52,926 | 45,412 | |||
Financial liabilities included in other non-current liabilities | 841,059 | 1,153,487 | |||
Obligations in relation to early retirement schemes | 777,305 | 426,737 | |||
Deferred government grants | 314,045 | 245,916 | |||
Deferred gain relating to sales and lease back agreements | 240,661 | 125,707 | |||
Contract liabilities | 132,844 | 125,758 | |||
Provision for rehabilitation | 121,033 | 131,248 | |||
Others | 11,217 | 10,721 | |||
Other non current liabilities excluding financial liabilities | 1,597,105 | 1,066,087 | |||
Other non current liabilities | 2,438,164 | $ 318,822 | ¥ 2,219,574 | ||
Maximum obligation period to pay the early retirement employees' living expenses | 5 years | ||||
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, | ¥ 1,293,841 | 1,438,440 | |||
Provision made during the year (note 29) | 210,428 | 447,660 | ¥ 767,632 | ||
Interest costs | 18,260 | 62,801 | |||
Payment during the year | (680,888) | (655,060) | |||
As at December 31, | ¥ 841,641 | 1,293,841 | ¥ 1,438,440 | ||
Non-current | 777,305 | ¥ 426,737 | |||
Current (note 22) | ¥ 516,536 | ¥ 414,904 |
OTHER PAYABLES AND ACCRUED LI_3
OTHER PAYABLES AND ACCRUED LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Financial liabilities | |||
Payable for capital expenditures | ¥ 6,832,365 | ¥ 5,694,632 | |
Accrued interest | 494,341 | 396,286 | |
Payables withheld as guarantees and deposits | 1,339,722 | 1,102,358 | |
Dividends payable by subsidiaries to non-controlling shareholders | 518,360 | 543,207 | |
Consideration payable for investment projects | 141,740 | 280,856 | |
Current portion of payables for mining rights | 372,824 | 210,325 | |
Others | 1,083,646 | 1,058,798 | |
Financial liabilities included in other payables and accrued liabilities | 10,782,998 | 9,286,462 | |
Taxes other than income taxes payable | 732,264 | 831,151 | |
Accrued payroll and bonus | 21,902 | 220,851 | |
Staff welfare payables | 258,448 | 391,824 | |
Current portion of obligations in relation to early retirement schemes | 414,904 | 516,536 | |
Contribution payable for pension insurance | 20,386 | 30,145 | |
Output value added tax on pending | 210,283 | 252,691 | |
Others | 999 | 37,492 | |
Other payables and accrued liabilities, excluded financial liabilities | 1,659,186 | 2,280,690 | |
Total accruals and deferred income classified as current | $ 1,787,208 | 12,442,184 | 11,567,152 |
USD | |||
Financial liabilities | |||
Total accruals and deferred income classified as current | ¥ 825,000 | 240,000 | |
HKD | |||
Financial liabilities | |||
Total accruals and deferred income classified as current | $ 250 | ¥ 270 |
TRADE AND NOTES PAYABLES (Detai
TRADE AND NOTES PAYABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
TRADE AND NOTES PAYABLES | |||
Trade payables | ¥ 7,858,214 | ¥ 8,570,102 | |
Notes payable | 4,726,541 | 5,439,162 | |
Total trade and notes payables | $ 1,807,687 | 12,584,755 | 14,009,264 |
USD | |||
TRADE AND NOTES PAYABLES | |||
Total trade and notes payables | ¥ 52,000 | ¥ 213,000 |
TRADE AND NOTES PAYABLES - AGEI
TRADE AND NOTES PAYABLES - AGEING ANALYSIS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Disclosure of financial liabilities | |||
Trade and notes payables | $ 1,807,687 | ¥ 12,584,755 | ¥ 14,009,264 |
Within 1 Year | |||
Disclosure of financial liabilities | |||
Trade and notes payables | 12,145,985 | 13,598,039 | |
1 to 2 Years | |||
Disclosure of financial liabilities | |||
Trade and notes payables | 229,221 | 140,665 | |
2 and 3 Years | |||
Disclosure of financial liabilities | |||
Trade and notes payables | 30,713 | 47,654 | |
Over 3 years | |||
Disclosure of financial liabilities | |||
Trade and notes payables | ¥ 178,836 | ¥ 222,906 |
PLEDGE OF ASSETS (Details)
PLEDGE OF ASSETS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
PLEDGE OF ASSETS | ||
Property, plant and equipment | ¥ 4,946,338 | ¥ 4,168,239 |
Land use rights | 328,116 | |
Right-of-use assets | 373,048 | |
Intangible assets | 757,269 | 772,597 |
Notes receivable | 667,190 | 933,551 |
Investments in associates | 538,787 | 535,610 |
Assets pledged as security | 7,282,632 | 6,738,113 |
Current portion of long-term loans and borrowings secured by contractual right to charge users for electricity generated in the future | 1,209,000 | 1,354,000 |
Non-current portion of long-term loans and borrowings secured by contractual right to charge users for electricity generated in the future | ¥ 10,265,000 | ¥ 10,155,000 |
PROFIT BEFORE INCOME TAX (Detai
PROFIT BEFORE INCOME TAX (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
PROFIT BEFORE INCOME TAX | ||||
Purchase of inventories in relation to trading activities | ¥ 104,928,962 | ¥ 85,443,397 | ¥ 98,282,748 | |
Raw materials and consumables used, and changes in work-in-progress and finished goods | 35,573,467 | 43,197,855 | 34,550,042 | |
Power and utilities | 16,755,424 | 17,650,214 | 17,274,948 | |
Depreciation of right-of-use assets | 1,075,825 | |||
Depreciation and amortization (Other than depreciation of right-of-use assets) | 7,714,418 | 8,055,753 | 7,064,747 | |
Employee benefit expenses | 7,773,170 | 7,433,027 | 6,975,281 | |
Repairs and maintenance | 1,867,160 | 1,750,194 | 1,716,940 | |
Transportation expenses | 950,716 | 1,893,659 | 1,768,604 | |
Logistic cost | 2,469,531 | 2,794,733 | 1,894,061 | |
Taxes other than income tax expense | 904,088 | 936,546 | 858,344 | |
Rental expenses for land use rights and buildings | 649,640 | 497,356 | ||
Packaging expenses | 277,785 | 261,626 | 267,547 | |
Research and development expenses | $ 135,141 | 940,828 | 626,873 | 498,234 |
Auditors' remuneration expense | 33,337 | 30,852 | 31,815 | |
Ernst and Young LLP Fees | ¥ 27,800 | ¥ 26,700 | ¥ 23,100 |
OTHER INCOME (Details)
OTHER INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
OTHER INCOME | ||||
Other income | $ 11,415 | ¥ 79,469 | ¥ 135,367 | ¥ 89,873 |
OTHER GAINS, NET (Details)
OTHER GAINS, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
OTHER GAINS, NET | ||||
Gain on disposal of subsidiaries | ¥ 261,187 | ¥ 3,517 | ¥ 325,022 | |
Gain on disposal and dividends of equity investments designated at fair value through other comprehensive income | 97,775 | 109,914 | 79,408 | |
Realized (losses)/gains on futures, forward and option contracts, net | 60,671 | 40,492 | (23,951) | |
Unrealized (losses)/gains on futures, forward and option contracts, net | (9,851) | 100,967 | (131,073) | |
Gain on disposal of property, plant and equipment and land use rights, net | 259,684 | 272,098 | 76,739 | |
Gain on previously held equity interests remeasured at acquisition-date fair value | 748,086 | 117,640 | ||
Gain on share of associates' net assets | 295,288 | |||
(Loss)/gain on disposal of investment in a joint venture/an associate | 159,514 | (1,904) | ||
Gain on disposal of business | 262,677 | |||
Others | (139,676) | (351,266) | (124,383) | |
Other gains, net | $ 179,159 | ¥ 1,247,269 | ¥ 921,904 | ¥ 319,402 |
OTHER GAINS, NET - Additional i
OTHER GAINS, NET - Additional information (Details) ¥ in Thousands | May 28, 2019CNY (¥)t | Dec. 31, 2019CNY (¥) | Mar. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Dividends from equity investments | ¥ 97,775 | ¥ 109,914 | ¥ 79,408 | |||
Gain from disposal of the aluminum capacity quota | ¥ 800,000 | 800,000 | 0 | 0 | ||
Gain (loss) on disposal of property, plant and equipment and land use rights | 259,684 | 272,098 | 76,739 | |||
Gain on share of associates' net assets | 295,288 | |||||
Loss on disposal of investments in associates | 159,514 | (1,904) | ||||
Guizhou Huajin | ||||||
Gain (loss) on disposal of property, plant and equipment and land use rights | ¥ 541,000 | |||||
Ningxia Zhongning Power Co Ltd | ||||||
Percentage of ownership interest transferred | 50.00% | |||||
Ningxia Zhongning Power Co Ltd | Ningxia Energy | ||||||
Loss on disposal of investments in associates | ¥ 159,000 | |||||
Investment to Heqing Yixin Aluminum Industry Co., Ltd. | ||||||
Gain on share of associates' net assets | 91,000 | |||||
Investment made in associates | 941,160 | |||||
Yunnan Aluminium Co | ||||||
Gain on share of associates' net assets | 204,000 | |||||
China Rare Earth Co., Ltd. | ||||||
Investment made in associates | ¥ 263,000 | |||||
Size Industry Investment Fund | ||||||
Dividends from equity investments | ¥ 98,000 | ¥ 109,000 | ¥ 79,000 | |||
Shanxi Huasheng Co., Ltd | Investment to Heqing Yixin Aluminum Industry Co., Ltd. | ||||||
Electrolytic aluminum capacity quota , transfer | t | 170,000 | |||||
Gain from disposal of the aluminum capacity quota | ¥ 800,000 | |||||
Ningxia Tianyuan Manganese Industry Group Co., Ltd | Ningxia Energy | ||||||
Percentage of ownership interest transferred | 50.00% |
FINANCE INCOME_FINANCE COSTS (D
FINANCE INCOME/FINANCE COSTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
FINANCE INCOME/FINANCE COSTS | ||||
Finance income - interest income | $ (37,512) | ¥ (261,151) | ¥ (492,234) | ¥ (706,690) |
Interest expense | 4,665,329 | 5,202,639 | 5,175,154 | |
Less: interest expense capitalized in property, plant and equipment | (289,499) | (517,589) | (344,452) | |
Interest expense, net of capitalized interest | 4,375,830 | 4,685,050 | 4,830,702 | |
Interest on lease liabilities | 487,249 | |||
Amortization of unrecognized finance expenses | 60,415 | 205,335 | 241,099 | |
Exchange (gain)/loss, net | (2,315) | (7,889) | 131,621 | |
Finance costs | $ 706,883 | ¥ 4,921,179 | ¥ 4,882,496 | ¥ 5,203,422 |
Minimum | ||||
FINANCE INCOME/FINANCE COSTS | ||||
Capitalization rate during the year | 4.00% | 4.00% | 4.54% | 4.41% |
Maximum | ||||
FINANCE INCOME/FINANCE COSTS | ||||
Capitalization rate during the year | 6.96% | 6.96% | 7.00% | 8.00% |
EMPLOYEE BENEFIT EXPENSES (Deta
EMPLOYEE BENEFIT EXPENSES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFIT EXPENSES | |||
Salaries and bonus | ¥ 4,939,758 | ¥ 4,636,972 | ¥ 4,205,361 |
Housing fund | 488,574 | 414,440 | 395,489 |
Staff welfare and other expenses | 2,035,931 | 1,896,365 | 1,576,552 |
Employment expense in relation to early retirement schemes | 210,428 | 447,660 | 767,632 |
Employment expenses in relation to termination benefit | 98,479 | 37,590 | 30,247 |
Total employee benefits expenses | ¥ 7,773,170 | ¥ 7,433,027 | ¥ 6,975,281 |
DIRECTORS' AND SUPERVISORS' R_3
DIRECTORS' AND SUPERVISORS' REMUNERATION (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DIRECTORS' AND SUPERVISORS' REMUNERATION | |||
Fees | ¥ 780 | ¥ 756 | ¥ 768 |
Basic salaries, housing fund, other allowances and benefits in kind | 4,665 | 1,849 | 1,370 |
Pension costs | 513 | 234 | 166 |
Total remuneration | ¥ 5,958 | ¥ 2,839 | ¥ 2,304 |
DIRECTORS' AND SUPERVISORS' R_4
DIRECTORS' AND SUPERVISORS' REMUNERATION - Remuneration of each director and supervisor (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant related party transactions | |||
Fees | ¥ 780 | ¥ 756 | ¥ 768 |
Salaries | 4,665 | 1,849 | 1,370 |
Pension costs | 513 | 234 | 166 |
Total remuneration | 5,958 | 2,839 | 2,304 |
Executive Directors | |||
Significant related party transactions | |||
Salaries | 2,607 | 1,200 | 822 |
Pension costs | 249 | 144 | 83 |
Total remuneration | 2,856 | 1,344 | 905 |
Jiang Yinggang | |||
Significant related party transactions | |||
Salaries | 889 | 762 | 822 |
Pension costs | 88 | 90 | 83 |
Total remuneration | 977 | 852 | 905 |
He Zhihui | |||
Significant related party transactions | |||
Salaries | 885 | ||
Pension costs | 73 | ||
Total remuneration | 958 | ||
Zhu Runzhou | |||
Significant related party transactions | |||
Salaries | 833 | 438 | |
Pension costs | 88 | 54 | |
Total remuneration | 921 | 492 | |
Non-executive Directors | |||
Significant related party transactions | |||
Fees | 780 | 756 | 768 |
Total remuneration | 780 | 756 | 768 |
Wang Jun | |||
Significant related party transactions | |||
Fees | 150 | 150 | 150 |
Total remuneration | 150 | 150 | 150 |
Chen Lijie | |||
Significant related party transactions | |||
Fees | 210 | 202 | 206 |
Total remuneration | 210 | 202 | 206 |
Lie-A-Cheong Tai-Chong, David | |||
Significant related party transactions | |||
Fees | 210 | 202 | 206 |
Total remuneration | 210 | 202 | 206 |
Hu Shihai | |||
Significant related party transactions | |||
Fees | 210 | 202 | 206 |
Total remuneration | 210 | 202 | 206 |
Supervisors | |||
Significant related party transactions | |||
Salaries | 2,058 | 649 | 548 |
Pension costs | 264 | 90 | 83 |
Total remuneration | 2,322 | 739 | 631 |
Guan Xiaoguang | |||
Significant related party transactions | |||
Salaries | 710 | ||
Pension costs | 88 | ||
Total remuneration | 798 | ||
Yue Xuguang | |||
Significant related party transactions | |||
Salaries | 770 | ||
Pension costs | 88 | ||
Total remuneration | 858 | ||
Wu Zuoming | |||
Significant related party transactions | |||
Salaries | 578 | 649 | 548 |
Pension costs | 88 | 90 | 83 |
Total remuneration | ¥ 666 | ¥ 739 | ¥ 631 |
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, 2019CNY (¥)Optionindividualemployee | Dec. 31, 2018CNY (¥)Optionindividual | Dec. 31, 2017CNY (¥)Optionindividual | |
Directors' and supervisors' remuneration | |||
Key management personnel compensation | ¥ 5,958,000 | ¥ 2,839,000 | ¥ 2,304,000 |
Number of directors and supervisors whose remuneration fell within Nil to RMB1,000,000 | individual | 14 | 12 | 15 |
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 | ||
Maximum | |||
Directors' and supervisors' remuneration | |||
Key management personnel compensation | ¥ 1,000,000 |
DIRECTORS' AND SUPERVISORS' R_6
DIRECTORS' AND SUPERVISORS' REMUNERATION - Five highest paid individuals (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019CNY (¥)individualdirectoremployee | Dec. 31, 2018CNY (¥)individualdirector | Dec. 31, 2017CNY (¥)individualdirector | |
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 | 2 | 1 | 1 |
Number of supervisors among five highest paid employees | individual | 1 | 1 | 1 |
Basic salaries, housing fund, other allowances and benefits in kind | ¥ 4,665 | ¥ 1,849 | ¥ 1,370 |
Pension costs | 513 | 234 | 166 |
Total remuneration | 5,958 | 2,839 | 2,304 |
Highest paid employees other than directors and supervisors | |||
Significant related party transactions | |||
Basic salaries, housing fund, other allowances and benefits in kind | 1,670 | 1,305 | 2,460 |
Pension costs | 137 | 165 | 249 |
Total remuneration | ¥ 1,807 | ¥ 1,470 | ¥ 2,709 |
DIRECTORS' AND SUPERVISORS' R_7
DIRECTORS' AND SUPERVISORS' REMUNERATION - Five highest paid individuals, Others (Details) | 12 Months Ended | ||
Dec. 31, 2019CNY (¥)employee | Dec. 31, 2018employee | Dec. 31, 2017employee | |
Significant related party transactions | |||
Number of remaining highest paid individuals other than director and supervisor | employee | 2 | 2 | 3 |
Minimum | |||
Significant related party transactions | |||
Remuneration amount for remaining two highest paid individuals | ¥ 0 | ||
Maximum | |||
Significant related party transactions | |||
Remuneration amount for remaining two highest paid individuals | ¥ 1,000,000 |
INCOME TAX EXPENSE) (Details)
INCOME TAX EXPENSE) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
INCOME TAX EXPENSE | ||||
Current income tax expense | ¥ 720,405 | ¥ 755,264 | ¥ 844,896 | |
Deferred tax (benefit)/expense | (94,685) | 67,255 | (201,190) | |
Income tax (expense)/benefit | $ 89,879 | ¥ 625,720 | ¥ 822,519 | ¥ 643,706 |
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) - Reconcili
INCOME TAX EXPENSE) - Reconciliation of tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Reconciliation of income tax expense (benefit) | ||||
Profit before income tax | ¥ 2,113,801 | ¥ 2,264,514 | ¥ 3,049,175 | |
Tax expense calculated at the statutory tax rate of 25% (2017 and 2018: 25%) | 528,450 | 566,129 | 762,294 | |
Preferential income tax rates applicable to certain branches and subsidiaries | (464,880) | (268,665) | (287,081) | |
Impact of change in income tax rate | 4,594 | 23,425 | 98,150 | |
Tax losses with no deferred tax assets recognized | 588,267 | 434,103 | 296,728 | |
Deductible temporary differences with no deferred tax assets recognized | 41,695 | 384,072 | 308,657 | |
Utilization of previously unrecognized tax losses and deductible temporary differences | (17,952) | (52,962) | (212,309) | |
Tax incentive in relation to deduction of certain expenses | (50,921) | (62,172) | (43,846) | |
Non-taxable income | (173,686) | (254,337) | (126,101) | |
Expenses not deductible for tax purposes | 56,448 | 54,959 | 49,564 | |
Write-off of unrecoverable deferred tax assets previously recognized | 187,433 | 183,195 | 49,808 | |
Profits and losses attributable to joint ventures and associates | (79,720) | 40,029 | ||
Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized | (3,868) | (233,940) | (274,726) | |
Adjustments in respect of current tax of previous periods | 9,860 | 8,683 | 22,568 | |
Income tax expense | $ 89,879 | ¥ 625,720 | ¥ 822,519 | ¥ 643,706 |
Effective tax rate | 30.00% | 30.00% | 36.00% | 21.00% |
Applicable tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Associates | ||||
Reconciliation of income tax expense (benefit) | ||||
Income tax expense | ¥ 79,000 | ¥ 106,000 | ¥ 86,000 | |
Joint ventures | ||||
Reconciliation of income tax expense (benefit) | ||||
Income tax expense | ¥ 54,000 | ¥ 48,000 | ¥ 11,000 |
EARNINGS PER SHARE ATTRIBUTAB_3
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT (Details) | 12 Months Ended | |||
Dec. 31, 2019$ / shares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT | ||||
Profit attributable to ordinary equity holders of the parent (RMB) | ¥ | ¥ 850,999 | ¥ 707,460 | ¥ 1,413,221 | |
Other equity instruments' distribution reserved (RMB) | ¥ | (219,249) | (129,282) | (110,000) | |
Profit attributable to ordinary equity holders of the parent after adjusting other equity instruments' distribution reserved | ¥ | ¥ 631,750 | ¥ 578,178 | ¥ 1,303,221 | |
Weighted average number of ordinary shares in issue | 14,903,798,236 | 14,903,798,236 | 14,903,798,236 | |
Effect of equity exchange arrangement | 1,938,915,502 | |||
Issuance of share capital | 2,118,874,715 | |||
Weighted average number of ordinary shares in issue after adjusting the effect of equity exchange arrangement | 17,022,672,951 | 16,842,713,738 | 14,903,798,236 | |
Basic and diluted earnings per share (RMB) | (per share) | $ 0.0053 | ¥ 0.037 | ¥ 0.034 | ¥ 0.087 |
Dilutive potential shares | 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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
Profit before income tax | $ 303,628 | ¥ 2,113,801 | ¥ 2,264,514 | ¥ 3,049,175 |
Adjustments for: | ||||
Share of profits and losses of joint ventures | (38,800) | (270,115) | 199,452 | (8,151) |
Share of profits and losses of associates | (7,005) | (48,767) | (39,335) | 165,249 |
Depreciation of property, plant and equipment | 7,094,716 | 7,499,322 | 6,554,842 | |
Depreciation | 26,559 | 22,229 | 14,105 | |
Depreciation, right-of-use assets | 1,075,825 | |||
Gain on disposal of other property, plant and equipment and land use rights, net | (242,960) | (101,098) | (76,739) | |
Impairment loss on property, plant and equipment | 37,254 | 259,354 | 46,484 | 16,200 |
Impairment losses of intangible assets | 1,448 | 8,134 | ||
Amortization of intangible assets | 338,938 | 295,901 | 275,877 | |
Amortization of land use rights | 108,152 | 91,579 | ||
Amortization of prepaid expenses included in other non-current assets | 254,205 | 130,148 | 127,793 | |
Realized and unrealized losses/(gains) on futures, option and forward contracts | (50,820) | (141,459) | 155,024 | |
Gain on previously held equity interest remeasured at acquisition-date fair value | (748,086) | (117,640) | ||
Gain on disposals and deemed disposals of subsidiaries | (261,187) | (3,517) | (325,022) | |
Loss/(gains) on disposal of investments in an associate | (159,514) | 1,904 | ||
Gain on disposal of business | (262,677) | |||
Gain on share of associates' net assets | (295,288) | |||
Gain on disposal of and dividends from equity investments | (97,775) | (109,914) | (79,408) | |
Receipt of government subsidies | (112,141) | (158,109) | (202,359) | |
Interest income | (183,036) | |||
Finance costs | 4,921,179 | 4,882,496 | 5,204,337 | |
Change in special reserve | (23,085) | 6,605 | 58,743 | |
Others | (11,555) | 75,381 | (16,951) | |
Cash flows generated from operating activities before working capital changes | 14,250,141 | 14,231,070 | 14,711,752 | |
Changes in working capital: | ||||
Decrease/(increase) in inventories | 929,027 | 1,194,454 | (2,662,507) | |
Increase in trade and notes receivables | (1,050,860) | (2,473,006) | (1,963,178) | |
Decrease in other current assets | (360,639) | 916,681 | 1,275,535 | |
(Increase)/decrease in restricted cash | 859,507 | 530,284 | (137,745) | |
(Increase)/decrease in other non-current assets | 547,287 | 425,739 | (422,845) | |
(Decrease)/increase in trade and notes payables | (1,385,081) | (5,559) | 1,600,975 | |
(Increase/(decrease) in other payables and accrued liabilities | (560,914) | (945,270) | 1,672,658 | |
Increase in other non-current liabilities | (206,354) | 105,386 | 81,878 | |
Cash generated from operations | 13,022,114 | 13,979,779 | 14,156,523 | |
PRC corporate income taxes paid | (548,625) | (947,703) | (949,383) | |
Net cash generated from operating activities | $ 1,791,705 | 12,473,489 | 13,032,076 | 13,207,140 |
Non-cash transactions of investing activities and financing activities | ||||
Capital injection to an associate and joint ventures by non-cash assets | 186,450 | |||
Equity exchange arrangement | 10,735,214 | |||
Investment in a joint venture used gallium business | 352,848 | |||
Non-controlling shareholders forfeited sharing of profit or equity interest | 149,322 | |||
Endorsement of notes receivables accepted from sale of goods or services for purchase of property, plant and equipment | 1,504,162 | 2,384,046 | 372,816 | |
Acquisition of equity investments designated at fair value through other comprehensive income by exchanging equity in a subsidiary | ¥ 350,911 | |||
Acquisition of businesses at non-cash consideration | 70,087 | 50,058 | ||
Finance lease | ¥ 113,601 | ¥ 44,342 |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | ¥ 125,911,427 | ¥ 127,852,937 | ||
Net cash generated from operating activities | (914,602) | (628,500) | ||
Net cash flows from/(used in) investing activities | 8,212,670 | 8,628,545 | ||
Payment of upfront interest of gold leasing arrangement | 6,921,860 | 2,323,105 | ||
Proceeds from Issue of Senior Perpetual Securities | $ 215,333 | 1,499,104 | 1,988,000 | |
Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs | 37,965,385 | 13,185,034 | ||
Repayments of senior perpetual securities | (50,655) | (352,648) | (410,548) | ¥ (501,933) |
Repayments of bonds and notes | (3,217,559) | (22,400,000) | (21,815,000) | (16,300,000) |
Repayments of gold leasing arrangement | (1,607,905) | (7,519,283) | ||
Drawdown of short-term and long-term loans | 5,841,765 | 40,669,197 | 76,899,591 | 83,762,879 |
Repayments of short-term and long-term loans | (9,495,445) | (66,105,388) | (70,560,667) | (78,858,459) |
Proceeds from sale and leaseback finance leases, net of deposit and transaction costs | 1,204,843 | 1,000,036 | ||
Capital elements of finance lease rental payment | (3,915,404) | (2,462,250) | ||
Payments of lease liabilities, classified as financing activities | $ 435,535 | 3,032,106 | ||
Dividends paid by subsidiaries to non-controlling shareholders | (23,715) | 277,771 | ||
Amortization of unrecognized finance expenses and interest expense | 487,249 | 527,385 | ||
Interest paid | 257,941 | (570,461) | ||
Net cash (used in)/ generated from financing activities | (7,220,130) | (9,963,086) | ||
Net foreign exchange differences | 43,907 | 21,531 | ||
As at end of year | 126,033,272 | 125,911,427 | 127,852,937 | |
Financial liabilities at fair value through profit or loss | ||||
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | 1,766 | 89,426 | ||
Net cash flows from/(used in) investing activities | (961) | (87,660) | ||
As at end of year | 805 | 1,766 | 89,426 | |
Trade and notes payables | ||||
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | 14,009,264 | 12,360,441 | ||
Net cash generated from operating activities | (1,385,080) | (3,996) | ||
Net cash flows from/(used in) investing activities | (41,607) | 1,646,299 | ||
Net foreign exchange differences | 2,178 | 6,520 | ||
As at end of year | 12,584,755 | 14,009,264 | 12,360,441 | |
Financial liabilities included in other current payables and accrued expenses | ||||
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | 9,286,462 | 11,363,236 | ||
Net cash generated from operating activities | 470,478 | (624,504) | ||
Net cash flows from/(used in) investing activities | 622,995 | (193,345) | ||
Repayments of short-term and long-term loans | (1,000,000) | |||
Dividends paid by subsidiaries to non-controlling shareholders | (23,715) | 277,771 | ||
Interest paid | 235,310 | (460,147) | ||
Reclassification | 162,120 | (90,644) | ||
Net cash (used in)/ generated from financing activities | 373,715 | (1,273,020) | ||
Net foreign exchange differences | 10,408 | 14,095 | ||
As at end of year | 10,764,058 | 9,286,462 | 11,363,236 | |
Financial liabilities included in other non-current liabilities | ||||
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | 841,059 | 769,061 | ||
Net cash flows from/(used in) investing activities | 474,548 | |||
Amortization of unrecognized finance expenses and interest expense | 6,090 | |||
Interest paid | (24,736) | |||
Reclassification | (162,120) | 90,644 | ||
Net cash (used in)/ generated from financing activities | (162,120) | 71,998 | ||
As at end of year | 1,153,487 | 841,059 | 769,061 | |
Interest bearing loans and borrowings | ||||
Reconciliation of liabilities arising from financing activities | ||||
As at beginning of year | 101,772,876 | 103,270,773 | ||
Net cash flows from/(used in) investing activities | 7,157,695 | 7,263,251 | ||
Payment of upfront interest of gold leasing arrangement | 6,921,860 | 2,323,105 | ||
Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs | 37,965,385 | 13,185,034 | ||
Repayments of senior perpetual securities | (352,648) | |||
Repayments of bonds and notes | (22,400,000) | (21,815,000) | ||
Repayments of gold leasing arrangement | (1,607,905) | (7,519,283) | ||
Drawdown of short-term and long-term loans | 40,669,197 | 76,899,591 | ||
Repayments of short-term and long-term loans | (66,105,388) | (69,560,667) | ||
Proceeds from sale and leaseback finance leases, net of deposit and transaction costs | 1,204,843 | |||
Capital elements of finance lease rental payment | (3,915,404) | |||
Payments of lease liabilities, classified as financing activities | 3,032,106 | |||
Amortization of unrecognized finance expenses and interest expense | 487,249 | 521,295 | ||
Interest paid | 22,631 | (85,578) | ||
Net cash (used in)/ generated from financing activities | (7,431,725) | (8,762,064) | ||
Net foreign exchange differences | 31,321 | 916 | ||
As at end of year | ¥ 101,530,167 | ¥ 101,772,876 | ¥ 103,270,773 |
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, 2019CNY (¥) | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | |
Within operating activities | ¥ 65,426 |
Within financing activities | 3,032,106 |
Total cash outflow from leases | ¥ 3,097,532 |
SIGNIFICANT RELATED PARTY BAL_3
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS - Significant related party transactions - Table Content (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales of goods and services rendered | |||
Sales of materials and finished goods | ¥ 23,616,344 | ¥ 19,235,717 | ¥ 14,097,316 |
Provision of utility services | 990,438 | 847,252 | 709,744 |
Other significant related party transactions | |||
Entrusted loans and other borrowings to related parties | 1,600,000 | ||
Interest income on entrusted loans and other borrowings to related parties | 65,430 | ||
Consideration to acquire the shares in the subsidiaries of Chinalco | 2,137,608 | 0 | 0 |
Disposal of electronic aluminium capacity quota to a subsidiary of Chinalco | 800,000 | 0 | 0 |
Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Services rendered | 7,706 | 79,141 | |
Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 55,378 | 34,607 | 41,301 |
Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 3,237,814 | 2,496,431 | 1,205,355 |
Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 12,701,924 | 13,822,660 | 10,367,335 |
Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 1,153,496 | 1,193,038 | 1,432,259 |
Chinalco and its subsidiaries | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 13,612,817 | 11,248,625 | 10,658,507 |
Provision of utility services | 687,290 | 620,552 | 581,566 |
Other significant related party transactions | |||
Interest income from the unpaid disposal proceeds from related parties | 117,587 | ||
Chinalco and its subsidiaries | Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Services rendered | 5,981 | 77,095 | |
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 | 52,571 | 31,551 | 40,875 |
Chinalco and its subsidiaries | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 2,949,866 | 2,088,338 | 1,071,283 |
Chinalco and its subsidiaries | Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 8,161,223 | 3,513,420 | 3,850,073 |
Chinalco and its subsidiaries | Provision of social services and logistics services | |||
Purchase of goods and services | |||
Purchase of services | 309,180 | 312,062 | 326,830 |
Chinalco and its subsidiaries | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 763,812 | 992,827 | 1,412,722 |
Chinalco and its subsidiaries | Rental expenses for buildings and land use rights | |||
Purchase of goods and services | |||
Rental expenses /lease liabilities payments for buildings and land use rights charged | 499,191 | 501,866 | 509,848 |
Associates of Chinalco | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 514,414 | 897,642 | 682,992 |
Provision of utility services | 4,062 | 15,719 | 8,776 |
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 | 65 | ||
Associates of Chinalco | Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 18 | 18,917 | |
Associates of Chinalco | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 100,835 | 96,510 | |
Joint ventures | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 5,676,548 | 4,462,670 | 2,031,159 |
Provision of utility services | 263,436 | 186,672 | 118,280 |
Other significant related party transactions | |||
Entrusted loans and other borrowings to related parties | 500,000 | ||
Interest income on entrusted loans and other borrowings to related parties | 41,005 | ||
Financial guarantee provided to related party | 12,450 | 12,450 | 18,350 |
Joint ventures | Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Services rendered | 2,046 | ||
Joint ventures | Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 1,967 | 1,545 | 426 |
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 key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 2,647,234 | 8,182,251 | 6,516,087 |
Joint ventures | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 280,523 | 26,269 | 19,537 |
Joint ventures | Provision of other services | |||
Purchase of goods and services | |||
Purchase of services | 272,220 | 226,280 | 269,204 |
Associates | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 3,812,565 | 2,626,780 | 724,658 |
Provision of utility services | 35,650 | 24,309 | 1,122 |
Other significant related party transactions | |||
Entrusted loans and other borrowings to related parties | 1,100,000 | ||
Interest income on entrusted loans and other borrowings to related parties | 24,425 | ||
Associates | Provision of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 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 | 775 | 1,511 | |
Associates | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 218,616 | 405,993 | 134,072 |
Associates | Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 1,893,449 | 2,108,072 | 1,175 |
Associates | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 8,326 | 77,432 | |
Shandong Aluminum, Shanxi Aluminum Plant and China Great Wall Aluminum Corporation | |||
Other significant related party transactions | |||
Borrowing from related parties | 3,890,000 | 6,525,000 | 4,010,000 |
Interest expense on borrowings, discounted notes and factoring arrangement from related parties | 141,991 | 143,415 | 225,934 |
Disposal assets under sale and leaseback contract to related parties | 500,000 | 224,000 | 600,000 |
Finance lease under a sale and leaseback contract from related parties | 558,924 | 224,000 | 600,036 |
Trade receivable factoring arrangement from related parties | 136,656 | 470,101 | 1,570,000 |
Discounted notes receivable to a related parties | 679,517 | 756,000 | 523,253 |
Financial guarantees provided | 4,000 | ||
Investment to Yunnan Aluminium | |||
Other significant related party transactions | |||
Consideration to acquire the shares in the subsidiaries of Chinalco | 1,287,608 | 0 | 0 |
Investment to Heqing Yixin Aluminum Industry Co., Ltd. | |||
Other significant related party transactions | |||
Consideration to acquire the shares in the subsidiaries of Chinalco | ¥ 850,000 | ¥ 0 | ¥ 0 |
SIGNIFICANT RELATED PARTY BAL_4
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS - Significant related party transactions - Paragraph Content (Details) - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2006 | Dec. 31, 2019 | Aug. 30, 2018 | |
Red Cliff Carbon | |||
Significant related party transactions | |||
Equity interest acquired (as a percent) | 77.65% | ||
Ningxia Energy | |||
Significant related party transactions | |||
Bank loan term (in years) | 14 years | ||
Financial guarantees provided | ¥ 35 | ||
Outstanding financial guarantee amount | ¥ 6 |
SIGNIFICANT RELATED PARTY BAL_5
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, 2019 | Dec. 31, 2018 |
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | ¥ 1,848,410 | ¥ 2,126,543 | |||
Provision for impairment of receivables | (17,815) | (77,657) | |||
Trade and notes receivables | 1,830,595 | 2,048,886 | |||
Other current assets, before provision for impairment | 2,033,443 | 2,284,994 | |||
Provision for impairment of other current assets | (30,509) | (40,830) | |||
Other current assets | 2,002,934 | 2,244,164 | |||
Trade and notes payables | 873,290 | 1,052,893 | |||
Other payables and accrued liabilities | 1,981,405 | 2,105,913 | |||
Contract Liabilities | 85,443 | 129,145 | |||
Shandong Aluminum, Shanxi Aluminum Plant and China Great Wall Aluminum Corporation | |||||
Balances with related parties | |||||
Cash and cash equivalents | 3,285,093 | 9,101,541 | |||
Interest-bearing loans and borrowings | 9,857,187 | 4,373,033 | |||
Chinalco and its subsidiaries | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 1,054,168 | 1,281,395 | |||
Other current assets, before provision for impairment | 482,195 | 830,615 | |||
Trade and notes payables | 334,840 | 404,278 | |||
Other payables and accrued liabilities | 1,810,514 | 1,930,947 | |||
Contract Liabilities | 29,210 | 22,307 | |||
Associates of Chinalco | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 6,034 | 18,655 | |||
Trade and notes receivables | 917 | 4,012 | |||
Other payables and accrued liabilities | 17,056 | 17,128 | |||
Contract Liabilities | 20 | ||||
Joint ventures | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 788,183 | 819,878 | |||
Other current assets, before provision for impairment | 1,503,505 | 1,424,678 | |||
Trade and notes payables | 527,744 | 631,570 | |||
Other payables and accrued liabilities | 73,823 | 8,860 | |||
Contract Liabilities | 56,010 | 94,367 | |||
Associates | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 25 | 6,615 | |||
Other current assets, before provision for impairment | 47,743 | 29,701 | |||
Other non-current assets | 111,845 | 111,845 | |||
Trade and notes payables | 9,789 | 13,033 | |||
Other payables and accrued liabilities | 80,012 | 148,978 | |||
Contract Liabilities | 223 | 12,451 | |||
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 | 35,029,000 | 42,553,000 | |||
Short-term loans and borrowings payable | ¥ 29,781,000 | ¥ 41,189,000 |
SIGNIFICANT RELATED PARTY BAL_6
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS - Compensation of key management personnel (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant related party transactions | |||
Fees | ¥ 780 | ¥ 756 | ¥ 768 |
Basic salaries, housing fund, other allowances and benefits in kind | 4,665 | 1,849 | 1,370 |
Pension costs | 513 | 234 | 166 |
Total remuneration | 5,958 | 2,839 | 2,304 |
Key management personnel | |||
Significant related party transactions | |||
Fees | 780 | 756 | 768 |
Basic salaries, housing fund, other allowances and benefits in kind | 6,945 | 3,953 | 3,830 |
Pension costs | 715 | 482 | 415 |
Total remuneration | ¥ 8,440 | ¥ 5,191 | ¥ 5,013 |
FINANCIAL AND CAPITAL RISK MA_3
FINANCIAL AND CAPITAL RISK MANAGEMENT (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign currency risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Range of possible increase (as a percent) | 5.00% | |
Range of possible decrease (as a percent) | 5.00% | |
Increase (decrease) due to increase in range | ¥ 95 | ¥ 10 |
Increase (decrease) due to decrease in range | ¥ 95 | 10 |
Interest rate risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Range of possible increase (as a percent) | 1.00% | |
Range of possible decrease (as a percent) | 1.00% | |
Increase (decrease) due to increase in range | ¥ 451 | 641 |
Increase (decrease) due to decrease in range | ¥ 451 | ¥ 641 |
FINANCIAL AND CAPITAL RISK MA_4
FINANCIAL AND CAPITAL RISK MANAGEMENT - Commodity price risk (Details) - Commodity price risk - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Range of possible increase (as a percent) | 3.00% | |
Range of possible decrease (as a percent) | 3.00% | |
Primary aluminum | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increase (decrease) due to increase in range | ¥ (14) | ¥ (46) |
Increase (decrease) due to decrease in range | 40 | 14 |
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 | 1 | 2 |
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 | 3 | 16 |
Copper | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increase (decrease) due to increase in range | 0.9 | 0.3 |
Increase (decrease) due to decrease in range | 0.9 | 0.9 |
Zinc | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increase (decrease) due to increase in range | (1) | (7) |
Increase (decrease) due to decrease in range | 5.1 | 1 |
Coal | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increase (decrease) due to increase in range | (2.7) | (0.2) |
Increase (decrease) due to decrease in range | ¥ 0.2 | ¥ 2.7 |
FINANCIAL AND CAPITAL RISK MA_5
FINANCIAL AND CAPITAL RISK MANAGEMENT - Credit risk (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 714,857 | ¥ 659,261 | |
Financial assets | 36,226,354 | ||
Revenues derived from entities directly or indirectly owned or controlled by the PRC government including Chinalco | 23,616,344 | 19,235,717 | ¥ 14,097,316 |
Financial assets in other non-current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 111,935 | 182,132 | |
Credit risk | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 22,316,463 | 34,492,833 | |
Credit risk | Trade receivables | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 4,559,112 | 5,209,535 | |
Credit risk | Financial assets in other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 5,723,924 | 4,875,525 | |
Credit risk | Notes receivable | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 2,834,011 | 2,894,482 | |
Credit risk | Restricted cash | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 1,305,781 | 2,165,288 | |
Credit risk | Cash and cash equivalents | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 7,759,190 | 19,130,835 | |
Credit risk | Financial assets in other non-current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 128,673 | 204,718 | |
Credit risk | Financial guarantees - not yet past due | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 5,772 | 12,450 | |
Credit risk | Stage 1 | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 13,666,193 | 25,506,228 | |
Credit risk | Stage 1 | Financial assets in other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 1,632,766 | 1,098,455 | |
Credit risk | Stage 1 | Notes receivable | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 2,834,011 | 2,894,482 | |
Credit risk | Stage 1 | Restricted cash | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 1,305,781 | 2,165,288 | |
Credit risk | Stage 1 | Cash and cash equivalents | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 7,759,190 | 19,130,835 | |
Credit risk | Stage 1 | Financial assets in other non-current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 128,673 | 204,718 | |
Credit risk | Stage 1 | Financial guarantees - not yet past due | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 5,772 | 12,450 | |
Credit risk | Stage 2 | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 3,970,620 | 3,655,638 | |
Credit risk | Stage 2 | Financial assets in other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 3,970,620 | 3,655,638 | |
Credit risk | Stage 3 | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 120,538 | 121,432 | |
Credit risk | Stage 3 | Financial assets in other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 120,538 | 121,432 | |
Credit risk | Simplified | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 4,559,112 | 5,209,535 | |
Credit risk | Simplified | Trade receivables | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 4,559,112 | 5,209,535 | |
Credit risk | PRC Government | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Revenues derived from entities directly or indirectly owned or controlled by the PRC government including Chinalco | ¥ 40,567,000 | ¥ 32,852,000 | ¥ 39,759,000 |
FINANCIAL AND CAPITAL RISK MA_6
FINANCIAL AND CAPITAL RISK MANAGEMENT - Liquidity risk (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Borrowing capacity | ¥ 167,431 | ||
Drawn borrowing facilities | 49,347 | ||
Unutilized banking facilities | 118,084 | ||
Unutilized banking facilities subject to renewal | ¥ 108,360 | ||
Renewal term | 12 months | ||
Liquidity risk | Futures contracts | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Borrowing capacity | $ 12 | ¥ 82 | |
Unutilized banking facilities | $ 1 | ¥ 7 |
FINANCIAL AND CAPITAL RISK MA_7
FINANCIAL AND CAPITAL RISK MANAGEMENT - Liquidity reserve (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturity Analysis For Derivative Financial Liabilities | ||
Carrying value of financial liabilities included in other non-current liabilities | ¥ 1,153,487 | ¥ 841,059 |
The Group | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 144,162,563 | 138,495,265 |
The Group | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 14,547,539 | 4,401,097 |
The Group | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 38,835,887 | 46,140,740 |
The Group | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 16,785,840 | 10,185,840 |
The Group | Short-term bonds | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 9,300,000 | 500,000 |
The Group | Gold leasing arrangement | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 6,921,860 | 1,607,905 |
The Group | Short-term bank and other loans | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 21,238,166 | 39,348,100 |
The Group | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 12,443,169 | 12,547,869 |
The Group | Financial liabilities at fair value through profit or loss | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 805 | 1,766 |
The Group | Financial liabilities included in other payables and accrued liabilities, excluding accrued interest | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 10,288,657 | 8,890,176 |
The Group | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,215,885 | 862,508 |
The Group | Trade and notes payables | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 12,584,755 | 14,009,264 |
The Group | Within 1 Year | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 70,359,788 | 75,509,232 |
The Group | Within 1 Year | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,729,933 | 2,518,653 |
The Group | Within 1 Year | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 3,339,687 | 3,384,400 |
The Group | Within 1 Year | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 400,000 | |
The Group | Within 1 Year | Short-term bonds | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 9,300,000 | 500,000 |
The Group | Within 1 Year | Gold leasing arrangement | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 6,921,860 | 1,607,905 |
The Group | Within 1 Year | Short-term bank and other loans | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 21,238,166 | 39,348,100 |
The Group | Within 1 Year | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 4,955,925 | 4,848,968 |
The Group | Within 1 Year | Financial liabilities at fair value through profit or loss | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 805 | 1,766 |
The Group | Within 1 Year | Financial liabilities included in other payables and accrued liabilities, excluding accrued interest | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 10,288,657 | 8,890,176 |
The Group | Within 1 Year | Trade and notes payables | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 12,584,755 | 14,009,264 |
The Group | 1 to 2 Years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 18,383,640 | 11,251,093 |
The Group | 1 to 2 Years | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,106,701 | 1,161,490 |
The Group | 1 to 2 Years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 7,525,775 | 7,377,956 |
The Group | 1 to 2 Years | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 7,285,840 | |
The Group | 1 to 2 Years | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,289,092 | 2,602,751 |
The Group | 1 to 2 Years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 176,232 | 108,896 |
The Group | 2 to 5 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 24,394,907 | 31,617,861 |
The Group | 2 to 5 years | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,333,762 | 707,716 |
The Group | 2 to 5 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 9,159,028 | 16,593,587 |
The Group | 2 to 5 years | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 9,500,000 | 9,785,840 |
The Group | 2 to 5 years | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 4,220,111 | 4,197,364 |
The Group | 2 to 5 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 182,006 | 333,354 |
The Group | Over 5 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 31,024,228 | 20,117,079 |
The Group | Over 5 years | Lease liabilities, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 10,377,143 | 13,238 |
The Group | Over 5 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 18,811,397 | 18,784,797 |
The Group | Over 5 years | Interest payables for loans and borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 978,041 | 898,786 |
The Group | Over 5 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | ¥ 857,647 | ¥ 420,258 |
FINANCIAL AND CAPITAL RISK MA_8
FINANCIAL AND CAPITAL RISK MANAGEMENT - Financial instruments by category (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER CURRENT ASSETS | ||
Current financial assets | ¥ 34,291,811 | |
Non-current financial assets | 1,934,543 | |
Total financial assets | 36,226,354 | |
Current financial liabilities | 70,862,982 | |
Non-current financial liabilities | 55,048,445 | |
Total financial liabilities | 125,911,427 | |
Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 1,766 | |
Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 47,565,490 | |
Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 9,286,462 | |
Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 14,009,264 | |
Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 841,059 | |
Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 54,207,386 | |
Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 1,766 | |
Total financial liabilities | 1,766 | |
Financial liabilities at fair value through profit or loss | Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 1,766 | |
Financial liabilities at amortized cost | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 70,861,216 | |
Non-current financial liabilities | 55,048,445 | |
Total financial liabilities | 125,909,661 | |
Financial liabilities at amortized cost | Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 47,565,490 | |
Financial liabilities at amortized cost | Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 9,286,462 | |
Financial liabilities at amortized cost | Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 14,009,264 | |
Financial liabilities at amortized cost | Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 841,059 | |
Financial liabilities at amortized cost | Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 54,207,386 | |
Trade receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 8,104,017 | |
Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 16,141 | |
Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,165,288 | |
Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 19,130,835 | |
Financial assets in other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,875,530 | |
Available-for-sale financial investments | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,729,825 | |
Financial assets in other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 204,718 | |
Total financial assets | ¥ 111,935 | 182,132 |
Loans and receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 34,275,670 | |
Non-current financial assets | 204,718 | |
Total financial assets | 34,480,388 | |
Loans and receivables | Trade receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 8,104,017 | |
Loans and receivables | Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,165,288 | |
Loans and receivables | Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 19,130,835 | |
Loans and receivables | Financial assets in other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,875,530 | |
Loans and receivables | Financial assets in other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 204,718 | |
Financial assets available-for-sale | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,729,825 | |
Total financial assets | 1,729,825 | |
Financial assets available-for-sale | Available-for-sale financial investments | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,729,825 | |
Held for trading | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 16,141 | |
Total financial assets | 16,141 | |
Held for trading | Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | ¥ 16,141 | |
The Group | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 25,685,193 | |
Non-current financial assets | 2,367,924 | |
Total financial assets | 28,053,117 | |
Current financial liabilities | 65,655,162 | |
Non-current financial liabilities | 60,397,050 | |
Total financial liabilities | 126,052,212 | |
The Group | Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 805 | |
The Group | Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 42,286,604 | |
The Group | Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 10,782,998 | |
The Group | Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 12,584,755 | |
The Group | Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 1,153,487 | |
The Group | Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 59,243,563 | |
The Group | Held for trading | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 805 | |
Total financial liabilities | 805 | |
The Group | Held for trading | Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 805 | |
The Group | Financial liabilities at amortized cost | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 65,654,357 | |
Non-current financial liabilities | 60,397,050 | |
Total financial liabilities | 126,051,407 | |
The Group | Financial liabilities at amortized cost | Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 42,286,604 | |
The Group | Financial liabilities at amortized cost | Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 10,782,998 | |
The Group | Financial liabilities at amortized cost | Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 12,584,755 | |
The Group | Financial liabilities at amortized cost | Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 1,153,487 | |
The Group | Financial liabilities at amortized cost | Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 59,243,563 | |
The Group | Trade receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,559,112 | |
The Group | Notes receivable | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,834,011 | |
The Group | Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 3,503,175 | |
The Group | Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 1,305,781 | |
The Group | Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 7,759,190 | |
The Group | Financial assets in other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 5,723,924 | |
The Group | Equity investments | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 2,239,251 | |
The Group | Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 128,673 | |
The Group | Held for trading | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 3,503,175 | |
Total financial assets | 3,503,175 | |
The Group | Held for trading | Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 3,503,175 | |
The Group | At amortisation cost | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 19,348,007 | |
Non-current financial assets | 128,673 | |
Total financial assets | 19,476,680 | |
The Group | At amortisation cost | Trade receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,559,112 | |
The Group | At amortisation cost | Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 1,305,781 | |
The Group | At amortisation cost | Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 7,759,190 | |
The Group | At amortisation cost | Financial assets in other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 5,723,924 | |
The Group | At amortisation cost | Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 128,673 | |
The Group | Equity investments designated at fair value through other comprehensive income | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 2,239,251 | |
Total financial assets | 2,239,251 | |
The Group | Equity investments designated at fair value through other comprehensive income | Equity investments | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 2,239,251 | |
The Group | Debt instrument at fair value through other comprehensive income | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,834,011 | |
Total financial assets | 2,834,011 | |
The Group | Debt instrument at fair value through other comprehensive income | Notes receivable | ||
OTHER CURRENT ASSETS | ||
Current financial assets | ¥ 2,834,011 |
FINANCIAL AND CAPITAL RISK MA_9
FINANCIAL AND CAPITAL RISK MANAGEMENT - Fair value (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurement Of Assets | ||
Financial assets | ¥ 36,226,354 | |
Financial liabilities | 125,911,427 | |
The Group | ||
Fair Value Measurement Of Assets | ||
Financial assets | ¥ 28,053,117 | |
Financial liabilities | 126,052,212 | |
The Group | At carrying amounts | ||
Fair Value Measurement Of Assets | ||
Financial assets | 128,673 | 204,718 |
Financial liabilities | 53,386,442 | 55,048,445 |
The Group | At carrying amounts | Financial liabilities included in other non-current liabilities | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 1,153,487 | 841,059 |
The Group | At carrying amounts | Long-term interest-bearing loans and borrowings, excluding lease liability | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 52,232,955 | 54,207,386 |
The Group | At carrying amounts | Other non-current assets | ||
Fair Value Measurement Of Assets | ||
Financial assets | 128,673 | 204,718 |
The Group | At fair values | ||
Fair Value Measurement Of Assets | ||
Financial assets | 111,935 | 182,132 |
Financial liabilities | 52,099,569 | 54,023,581 |
The Group | At fair values | Financial liabilities included in other non-current liabilities | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 1,146,893 | 816,529 |
The Group | At fair values | Long-term interest-bearing loans and borrowings, excluding lease liability | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 50,952,676 | 53,207,052 |
The Group | At fair values | Other non-current assets | ||
Fair Value Measurement Of Assets | ||
Financial assets | ¥ 111,935 | ¥ 182,132 |
FINANCIAL AND CAPITAL RISK M_10
FINANCIAL AND CAPITAL RISK MANAGEMENT - Fair value hierarchy (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value measurement of liabilities | ||
Financial assets | ¥ 36,226,354 | |
Financial liabilities at amortized cost | ¥ 52,099,569 | 54,023,581 |
Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 805 | |
Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 805 | |
Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 1,146,893 | 816,529 |
Long-term interest-bearing loans and borrowings | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 50,952,676 | 53,207,052 |
Financial assets in other non-current assets | ||
Fair value measurement of liabilities | ||
Financial assets | 111,935 | 182,132 |
Significant observable inputs (Level 2) | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 52,099,569 | 54,023,581 |
Significant observable inputs (Level 2) | Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 1,146,893 | 816,529 |
Significant observable inputs (Level 2) | Long-term interest-bearing loans and borrowings | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 50,952,676 | 53,207,052 |
Significant observable inputs (Level 2) | Financial assets in other non-current assets | ||
Fair value measurement of liabilities | ||
Financial assets | 111,935 | 182,132 |
The Group | ||
Fair value measurement of liabilities | ||
Financial assets | 28,053,117 | |
The Group | Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 1,766 | |
The Group | Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 1,766 | |
The Group | Assets measured at fair value | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 8,576,437 | 1,745,966 |
The Group | Futures contracts | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 3,175 | 16,141 |
The Group | Financial product | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 3,500,000 | |
The Group | Debt instrument at fair value through other comprehensive income | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 2,834,011 | |
The Group | Listed equity investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 8,853 | 6,441 |
The Group | Other unlisted investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 2,230,398 | 1,723,384 |
The Group | Quoted prices in active markets (Level 1) | Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 805 | 1,766 |
The Group | Quoted prices in active markets (Level 1) | Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 805 | 1,766 |
The Group | Quoted prices in active markets (Level 1) | Assets measured at fair value | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 12,028 | 22,582 |
The Group | Quoted prices in active markets (Level 1) | Futures contracts | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 3,175 | 16,141 |
The Group | Quoted prices in active markets (Level 1) | Listed equity investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 8,853 | 6,441 |
The Group | Significant observable inputs (Level 2) | Assets measured at fair value | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 6,334,011 | |
The Group | Significant observable inputs (Level 2) | Financial product | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 3,500,000 | |
The Group | Significant observable inputs (Level 2) | Debt instrument at fair value through other comprehensive income | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 2,834,011 | |
The Group | Significant unobservable inputs (Level 3) | Assets measured at fair value | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 2,230,398 | 1,723,384 |
The Group | Significant unobservable inputs (Level 3) | Other unlisted investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | ¥ 2,230,398 | ¥ 1,723,384 |
FINANCIAL AND CAPITAL RISK M_11
FINANCIAL AND CAPITAL RISK MANAGEMENT - Transfers of fair value (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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_12
FINANCIAL AND CAPITAL RISK MANAGEMENT - Valuation Inputs (Details) - Net Assets Method - Significant unobservable inputs (Level 3) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurement Of Assets | ||
Equity investments in Size Industry Investment Fund | ¥ 5,000,000 | ¥ 5,000,000 |
Chinalco Innovative Development Investment Company Limited | ||
Fair Value Measurement Of Assets | ||
Equity investments in Size Industry Investment Fund | ¥ 350,911 |
FINANCIAL AND CAPITAL RISK M_13
FINANCIAL AND CAPITAL RISK MANAGEMENT - Gearing ratio (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Jan. 01, 2017CNY (¥) |
Gearing ratio | |||||||
Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) | ¥ 130,170,395 | ¥ 131,054,499 | |||||
Less: Restricted cash, time deposits and cash and cash equivalents | (9,064,971) | (21,296,123) | |||||
Net debt | 121,105,424 | 109,758,376 | |||||
Total equity | $ 10,159,019 | 70,725,060 | ¥ 67,669,619 | 67,669,619 | ¥ 65,642,594 | ¥ 65,782,030 | ¥ 56,008,429 |
Add: net debt | 121,105,424 | 109,758,376 | |||||
Less: non-controlling interests | $ (2,307,654) | (16,065,427) | (15,254,312) | ||||
Total capital attributable to owners of the parent | ¥ 175,765,057 | ¥ 162,173,683 | |||||
Gearing ratio | 0.69 | 0.69 | 0.68 |
PARTLY-OWNED SUBSIDIARIES WIT_3
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Profit/(loss) for the year allocated to non-controlling interests | $ 91,511 | ¥ 637,082 | ¥ 734,535 | ¥ 992,248 | |
Accumulated balances of non-controlling interests at the reporting dates | 2,307,654 | 15,254,312 | ¥ 16,065,427 | ||
Revenue | 27,302,445 | 190,074,161 | 180,241,414 | 181,022,636 | |
Profit for the year | 213,749 | 1,488,081 | 1,441,995 | 2,405,469 | |
Total comprehensive income for the year | 215,308 | 1,498,931 | 1,309,517 | 1,731,611 | |
Current assets | 6,997,293 | 58,901,463 | 48,713,752 | ||
Non-current assets | 22,171,983 | 142,063,288 | 154,356,912 | ||
Current liabilities | 9,935,610 | 74,836,777 | 69,169,728 | ||
Non-current liabilities | 9,074,647 | 58,458,355 | 63,175,876 | ||
Net cash flows from operating activities | 1,791,705 | 12,473,489 | 13,032,076 | 13,207,140 | |
Net cash flows used in investing activities | (1,923,684) | (13,392,301) | (5,529,105) | (5,598,131) | |
Net cash flows from financing activities | (1,504,501) | (10,474,035) | (16,280,606) | (3,387,111) | |
Effect of foreign exchange rate changes, net | $ 3,045 | ¥ 21,202 | ¥ 57,364 | ¥ (221,567) | |
Ningxia Energy | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Non-controlling interests (in percent) | 29.18% | 29.18% | 29.18% | ||
Profit/(loss) for the year allocated to non-controlling interests | ¥ 240,504 | ¥ 214,479 | |||
Dividends distributed to non-controlling interests | 76,469 | 351,979 | |||
Accumulated balances of non-controlling interests at the reporting dates | 4,757,014 | 4,978,089 | |||
Revenue | 6,695,724 | 6,714,040 | |||
Total expenses | 6,314,098 | 6,555,933 | |||
Profit for the year | 381,626 | 158,107 | |||
Total comprehensive income for the year | 381,626 | 158,107 | |||
Current assets | 5,036,413 | 5,081,743 | |||
Non-current assets | 32,677,977 | 32,133,495 | |||
Current liabilities | 8,723,922 | 8,688,475 | |||
Non-current liabilities | 18,367,979 | 17,559,995 | |||
Net cash flows from operating activities | 3,274,683 | 2,755,612 | |||
Net cash flows used in investing activities | (939,054) | (1,616,513) | |||
Net cash flows from financing activities | (2,611,597) | (991,998) | |||
Net increase/(decrease) in cash and cash equivalents | ¥ (275,968) | ¥ 147,101 | |||
Shanxi Zhongrun | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Non-controlling interests (in percent) | 56.61% | 56.61% | 60.00% | ||
Profit/(loss) for the year allocated to non-controlling interests | ¥ 69,701 | ¥ 291,009 | |||
Dividends distributed to non-controlling interests | 200,000 | ||||
Accumulated balances of non-controlling interests at the reporting dates | 782,176 | 996,686 | |||
Revenue | 2,204,777 | 645,413 | |||
Total expenses | 2,081,652 | 644,596 | |||
Profit for the year | 123,125 | 817 | |||
Total comprehensive income for the year | 123,125 | 817 | |||
Current assets | 605,140 | 783,726 | |||
Non-current assets | 3,421,608 | 4,010,818 | |||
Current liabilities | 790,819 | 1,084,890 | |||
Non-current liabilities | 2,258,089 | 2,093,735 | |||
Net cash flows from operating activities | 234,014 | (19,718) | |||
Net cash flows used in investing activities | (402,636) | (781,869) | |||
Net cash flows from financing activities | 307,452 | (1,335,579) | |||
Net increase/(decrease) in cash and cash equivalents | ¥ 138,830 | ¥ (2,137,166) | |||
Guizhou Huaren | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Non-controlling interests (in percent) | 60.00% | 60.00% | 60.00% | ||
Profit/(loss) for the year allocated to non-controlling interests | ¥ 198,016 | ¥ 20,783 | |||
Accumulated balances of non-controlling interests at the reporting dates | 820,675 | 1,028,426 | |||
Revenue | 5,982,665 | 4,282,882 | |||
Total expenses | 5,677,075 | 4,248,243 | |||
Profit for the year | 305,590 | 34,639 | |||
Total comprehensive income for the year | 305,590 | 34,639 | |||
Current assets | 1,169,453 | 1,034,442 | |||
Non-current assets | 3,038,875 | 2,650,822 | |||
Current liabilities | 1,381,541 | 1,164,346 | |||
Non-current liabilities | 1,458,995 | ¥ 1,006,360 | |||
Net cash flows from operating activities | 565,027 | 134,781 | |||
Net cash flows used in investing activities | (91,319) | (510,243) | |||
Net cash flows from financing activities | (354,187) | (115,222) | |||
Net increase/(decrease) in cash and cash equivalents | ¥ 119,521 | ¥ (490,684) |
BUSINESS COMBINATION - Acquisit
BUSINESS COMBINATION - Acquisitions (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2018CNY (¥) | Aug. 31, 2017CNY (¥) | Apr. 30, 2015CNY (¥)director | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 29, 2017CNY (¥) | Dec. 28, 2017CNY (¥) | Jan. 01, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
BUSINESS COMBINATION | |||||||||||||
Total equity | ¥ 65,642,594 | ¥ 67,669,619 | ¥ 65,782,030 | $ 10,159,019 | ¥ 70,725,060 | ¥ 67,669,619 | ¥ 56,008,429 | ||||||
Assets | |||||||||||||
Intangible assets | ¥ 0 | ||||||||||||
Cash and cash equivalents | 2,173,062 | ||||||||||||
Liabilities | |||||||||||||
Gain on previously held equity interest remeasured at acquisition-date fair value | 748,086 | 117,640 | |||||||||||
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 | ¥ 255,650 | ¥ 255,152 | ||||||||||
Ningxia Energy | |||||||||||||
BUSINESS COMBINATION | |||||||||||||
Registered capital | ¥ 5,025,800 | ||||||||||||
Qingdao Light Metal | |||||||||||||
BUSINESS COMBINATION | |||||||||||||
Equity interest acquired (as a percent) | 100.00% | ||||||||||||
Assets | |||||||||||||
Investment properties | ¥ 10,425 | ¥ 10,742 | |||||||||||
Property, plant and equipment | 278,309 | 290,579 | |||||||||||
Land use rights | 20,195 | 20,722 | |||||||||||
Inventories | 49,489 | 29,446 | |||||||||||
Other current assets | 3,978 | 2,934 | |||||||||||
Trade and notes receivables | 98,957 | 29,748 | |||||||||||
Cash and cash equivalents | 10,924 | 5,688 | |||||||||||
Liabilities | |||||||||||||
Trade and notes payables | 97,681 | 64,900 | |||||||||||
Other payables and accrued expenses | 66,042 | 10,641 | |||||||||||
Interest bearing loans and borrowings | 167,000 | 167,000 | |||||||||||
Net assets | 141,554 | 147,318 | |||||||||||
Other equity instruments | 138,670 | 138,670 | |||||||||||
Non-controlling interests | 2,884 | 8,648 | |||||||||||
Difference recognized in equity | 158,848 | ||||||||||||
Total purchase consideration | 161,732 | ||||||||||||
Cash and bank balances acquired | ¥ 10,924 | 5,688 | |||||||||||
Shanxi Aluminum Sewage Treatment Plant | |||||||||||||
Assets | |||||||||||||
Property, plant and equipment | ¥ 48,995 | 52,001 | |||||||||||
Liabilities | |||||||||||||
Net assets | 48,995 | ¥ 52,001 | |||||||||||
Difference recognized in equity | 1,063 | ||||||||||||
Total purchase consideration | ¥ 50,058 | ||||||||||||
Yinxing Power | |||||||||||||
BUSINESS COMBINATION | |||||||||||||
Registered capital | ¥ 800,000 | ||||||||||||
Equity interest acquired (as a percent) | 51.00% | ||||||||||||
Total number of directors | director | 7 | ||||||||||||
Assets | |||||||||||||
Property, plant and equipment | ¥ 3,594,970 | ||||||||||||
Intangible assets | 188 | ||||||||||||
Land use rights | 31,833 | ||||||||||||
Inventories | 35,349 | ||||||||||||
Other current assets | 312,840 | ||||||||||||
Trade and notes receivables | 162,093 | ||||||||||||
Cash and cash equivalents | 255,152 | ||||||||||||
Liabilities | |||||||||||||
Trade and notes payables | 800,438 | ||||||||||||
Other payables and accrued expenses | 186,782 | ||||||||||||
Deferred tax liabilities | (40,706) | ||||||||||||
Interest bearing loans and borrowings | (2,514,800) | ||||||||||||
Net assets | 849,699 | ||||||||||||
Non-controlling interests | 416,353 | ||||||||||||
Net assets acquired | 433,346 | ||||||||||||
Initial investment cost | 316,200 | ||||||||||||
Investment income recognized under the equity method | (494) | ||||||||||||
Book value of the investment | 315,706 | ||||||||||||
Fair value of the investment | 433,346 | ||||||||||||
Gain on previously held equity interest remeasured at acquisition-date fair value | 117,640 | ||||||||||||
Cash and bank balances acquired | 255,152 | ||||||||||||
Net inflow of cash and cash equivalents included in cash flows from investing activities | 255,152 | ||||||||||||
Revenue | 578,117 | ||||||||||||
Profit for the year | 96,756 | ||||||||||||
Net cash flows | ¥ 36,024 | ||||||||||||
Yinxing Power | Ningxia Energy | |||||||||||||
BUSINESS COMBINATION | |||||||||||||
Equity interest acquired (as a percent) | 51.00% | ||||||||||||
Yinxing Power | Zhejiang Power | |||||||||||||
BUSINESS COMBINATION | |||||||||||||
Equity interest acquired (as a percent) | 49.00% | ||||||||||||
Number of directors can be appointed | director | 4 |
BUSINESS COMBINATION - Guizhou
BUSINESS COMBINATION - Guizhou Huaren (Details) - CNY (¥) ¥ in Thousands | Jan. 01, 2018 | May 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 |
Assets | |||||
Intangible assets | ¥ 0 | ||||
Restricted cash | ¥ 2,165,288 | 1,305,781 | |||
Cash and cash equivalents | ¥ 2,173,062 | ||||
Liabilities | |||||
Contract liabilities | (1,310,072) | (1,579,322) | |||
Gain on previously held equity interest remeasured at acquisition-date fair value | 748,086 | ¥ 117,640 | |||
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 | ¥ 255,650 | ¥ 255,152 | ||
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 | Jan. 01, 2018CNY (¥) | Feb. 28, 2017CNY (¥)director | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) |
Assets | |||||
Intangible assets | ¥ 0 | ||||
Cash and cash equivalents | ¥ 2,173,062 | ||||
Liabilities | |||||
Gain on previously held equity interest remeasured at acquisition-date fair value | ¥ 748,086 | ¥ 117,640 | |||
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 | ¥ 255,650 | ¥ 255,152 | ||
Shanxi Zhongrun | |||||
BUSINESS COMBINATION | |||||
Registered capital | ¥ 500,000 | ||||
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 | ||||
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 (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Jan. 01, 2017CNY (¥) |
Assets | ||||||||||
Intangible assets | ¥ 0 | |||||||||
Restricted cash | ¥ 2,165,288 | ¥ 2,165,288 | 1,305,781 | |||||||
Cash and cash equivalents | ¥ 2,173,062 | |||||||||
Liabilities | ||||||||||
Contract liabilities | (1,310,072) | (1,310,072) | (1,579,322) | |||||||
Equity | 65,642,594 | ¥ 67,669,619 | 67,669,619 | ¥ 65,782,030 | $ 10,159,019 | ¥ 70,725,060 | ¥ 67,669,619 | ¥ 56,008,429 | ||
Gain on previously held equity interest remeasured at acquisition-date fair value | 748,086 | 117,640 | ||||||||
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 | ¥ 255,650 | ¥ 255,152 | |||||||
Shanxi Huaxing | ||||||||||
BUSINESS COMBINATION | ||||||||||
Equity interest acquired (as a percent) | 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 | |||||||||
Difference recognized in equity | 1,163,949 | |||||||||
Cash consideration | 2,665,205 | ¥ 2,665,000 | ¥ 2,665,000 | |||||||
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, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Aug. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | ||||||
Cash and cash equivalents | ¥ 2,173,062 | |||||
Liabilities | ||||||
Contract liabilities | ¥ (1,579,322) | ¥ (1,310,072) | ||||
Shandong Aluminum Carbon Plant | ||||||
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 | ||||||
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, 2019 | Dec. 31, 2018 | Aug. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Assets | |||||
Intangible assets | ¥ 0 | ||||
Restricted cash | 1,305,781 | ¥ 2,165,288 | |||
Cash and cash equivalents | ¥ 2,173,062 | ||||
Liabilities | |||||
Contract liabilities | (1,579,322) | ¥ (1,310,072) | |||
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 | |||
Intangible assets | 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, 2019 | Dec. 31, 2018 | Sep. 17, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||||
Cash and cash equivalents | ¥ 2,173,062 | ||||
Liabilities | |||||
Contract liabilities | ¥ (1,579,322) | ¥ (1,310,072) | |||
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 |
BUSINESS COMBINATION - Suzhou Z
BUSINESS COMBINATION - Suzhou Zhongse Metal Materials Technology (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2019 | Jun. 01, 2019 | Dec. 31, 2019 | Apr. 29, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Assets | ||||||
Intangible assets | ¥ 0 | |||||
Cash and cash equivalents | ¥ 2,173,062 | |||||
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% |
DISPOSAL OF BUSINESSES (Details
DISPOSAL OF BUSINESSES (Details) ¥ in Thousands, $ in Thousands | Oct. 31, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Jan. 01, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Net assets disposed of: | ||||||||||
Property, Plant and equipment | $ 14,842,635 | ¥ 103,331,456 | ¥ 106,249,116 | ¥ 95,731,894 | ||||||
Intangible assets | 1,977,141 | 13,764,460 | 12,879,365 | 10,637,633 | ||||||
Deferred tax assets | 1,522,216 | 1,542,655 | ||||||||
Inventories | 2,803,214 | 19,515,420 | 20,459,668 | |||||||
Trade and notes receivables | 1,061,956 | 7,393,123 | 8,104,017 | |||||||
Other current assets | 1,326,821 | 9,237,063 | 9,025,514 | |||||||
Cash and cash equivalents | 1,114,538 | 7,759,190 | $ 2,747,973 | 19,130,835 | 27,851,106 | ¥ 23,850,775 | ||||
Other non-current liabilities | (318,822) | (2,219,574) | (2,438,164) | |||||||
Trade and notes payables | (1,807,687) | (12,584,755) | (14,009,264) | |||||||
Interest-bearing loans and borrowings | (8,509,805) | (59,243,563) | (54,207,386) | |||||||
Non-controlling interests | 2,307,654 | 16,065,427 | 15,254,312 | |||||||
Total equity | 10,159,019 | 70,725,060 | ¥ 67,669,619 | 67,669,619 | ¥ 65,642,594 | 65,782,030 | ¥ 56,008,429 | |||
Investments in joint ventures | $ 486,308 | ¥ 3,385,582 | ¥ 3,393,349 | ¥ 6,007,624 | ||||||
Shandong Engineering | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Percentage of equity attributable to the Company | 40.00% | |||||||||
Fair value gain recognized for remaining 40% equity interest | ¥ 102,000 | |||||||||
Other gains from unrealized profit arises from past services | 59,000 | |||||||||
Net assets disposed of: | ||||||||||
Property, Plant and equipment | 109,103 | |||||||||
Intangible assets | 428 | |||||||||
Deferred tax assets | 3,106 | |||||||||
Inventories | 167,499 | |||||||||
Trade and notes receivables | 1,067,636 | |||||||||
Other current assets | 23,136 | |||||||||
Cash and cash equivalents | 123,530 | |||||||||
Other non-current liabilities | (4,637) | |||||||||
Other payables and accrued expenses | (282,232) | |||||||||
Trade and notes payables | (727,622) | |||||||||
Interest-bearing loans and borrowings | (130,000) | |||||||||
Net assets | 349,947 | |||||||||
Non-controlling interests | 3,961 | |||||||||
Total equity | 345,986 | |||||||||
Gain on disposal | 254,659 | |||||||||
The fair value of the remaining equity interest in subsidiary | 240,258 | |||||||||
Consideration | 360,387 | |||||||||
Cash consideration | 387 | |||||||||
Notes receivable | ¥ 360,000 | |||||||||
Shandong Engineering | CHALIECO | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Equity interests transferred (as a percent) | 60.00% |
DISPOSAL OF BUSINESSES - Cash f
DISPOSAL OF BUSINESSES - Cash flows (Details) - Shandong Engineering ¥ in Thousands | Oct. 31, 2017CNY (¥) |
Analysis of the cash flow of cash and cash equivalents | |
Cash consideration received | ¥ 387 |
Cash and bank balances disposed of | (123,530) |
Net outflows of cash and cash equivalents in respect of disposal | ¥ (123,143) |
DISPOSAL OF BUSINESSES - Other
DISPOSAL OF BUSINESSES - Other disposals (Details) ¥ in Thousands | Feb. 20, 2019CNY (¥) | Feb. 15, 2017CNY (¥)shareholder | Feb. 14, 2017 | Jul. 31, 2019CNY (¥) | Jan. 31, 2019CNY (¥) | Aug. 31, 2018CNY (¥) | Jun. 30, 2018CNY (¥) | Mar. 31, 2018CNY (¥) | Nov. 30, 2017CNY (¥) | Sep. 30, 2017CNY (¥) |
Shanxi Zhongrun | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 40.00% | 50.00% | ||||||||
Amount of equity interest subscribed | ¥ 100,000 | |||||||||
Number of other shareholders | shareholder | 3 | |||||||||
Fair value of investment in associates | ¥ 100,000 | |||||||||
Fair value gain (loss) recognized for remaining equity interest | ¥ 4,000 | |||||||||
Shanxi Zhongrun | Shanxi Zhongrun with Huarun (Coal) Group | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 20.00% | |||||||||
Amount of equity interest subscribed | ¥ 100,000 | |||||||||
Shanxi Zhongrun | Xishan Coal Electricity | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 20.00% | |||||||||
Amount of equity interest subscribed | ¥ 100,000 | |||||||||
Shanxi Zhongrun | Jin Energy Power | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 20.00% | |||||||||
Amount of equity interest subscribed | ¥ 100,000 | |||||||||
Zibo Trading | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Equity interests transferred (as a percent) | 50.00% | |||||||||
Gain (loss) on disposal | ¥ 2,000 | |||||||||
Ownership interest in subsidiary (in percent) | 50.00% | |||||||||
The fair value of the remaining equity interest in subsidiary | ¥ 12,000 | |||||||||
Fair value gain (loss) recognized for remaining equity interest | ¥ (2,000) | |||||||||
Longmen Aluminum | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Gain (loss) on disposal | ¥ (26,000) | |||||||||
Beijing Yike | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Gain (loss) on disposal | ¥ 38,000 | |||||||||
Zhengzhou Chalco Longyu Mining | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Equity interests transferred (as a percent) | 51.00% | |||||||||
Gain (loss) on disposal | ¥ 8,000 | |||||||||
Shanxi Huatai Carbon | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Gain (loss) on disposal | ¥ (2,000) | |||||||||
Hedong Carbon | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Gain (loss) on disposal | ¥ (2,000) | |||||||||
China Aluminum Nanhai Alloy | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 100.00% | |||||||||
Fair value of investment in associates | ¥ 350,000 | |||||||||
Equity interests transferred (as a percent) | 19.4852% | |||||||||
Fair value gain (loss) recognized for remaining equity interest | ¥ 258,000 | |||||||||
Inner Mongolia Fengrong | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 40.00% | |||||||||
Gain (loss) on disposal | ¥ 3,014 | |||||||||
Ningxia Fenghao | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 60.00% | |||||||||
Gain (loss) on disposal | ¥ 3,014 | |||||||||
Shanghai Kailin | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 100.00% | |||||||||
Gain (loss) on disposal | ¥ 160 | |||||||||
Ruzhou Jinhua | ||||||||||
DISPOSAL OF BUSINESSES | ||||||||||
Ownership interest in associate (in percent) | 51.00% | |||||||||
Gain (loss) on disposal | ¥ 113 |
OTHER EQUITY INSTRUMENTS (Detai
OTHER EQUITY INSTRUMENTS (Details) ¥ in Thousands, $ in Thousands | Nov. 19, 2019CNY (¥) | Oct. 31, 2018USD ($) | Oct. 31, 2018CNY (¥) | Oct. 19, 2018CNY (¥) | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | Oct. 27, 2015CNY (¥) | Oct. 22, 2013USD ($) | Oct. 22, 2013CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
OTHER EQUITY INSTRUMENTS | |||||||||||||
Proceeds from issuance of perpetual securities, net of issuance costs | $ 215,333 | ¥ 1,499,104 | ¥ 1,988,000 | ||||||||||
Repayments for short-term and long term longs | $ 9,495,445 | ¥ 66,105,388 | ¥ 70,560,667 | ¥ 78,858,459 | |||||||||
2013 Senior Perpetual Securities | |||||||||||||
OTHER EQUITY INSTRUMENTS | |||||||||||||
Notional amount | $ | $ 350,000 | ||||||||||||
Interest rate (as a percent) | 6.625% | ||||||||||||
Proceeds from issuance of perpetual securities, net of issuance costs | $ 347,000 | ¥ 2,123,000 | |||||||||||
Initial spread (as a percent) | 5.312% | ||||||||||||
Margin rate (as a percent) | 5.00% | ||||||||||||
2015 Perpetual Medium-term Notes | |||||||||||||
OTHER EQUITY INSTRUMENTS | |||||||||||||
Notional amount | ¥ 2,000,000 | ||||||||||||
Interest rate (as a percent) | 5.50% | ||||||||||||
Proceeds from Medium-term Notes | ¥ 2,000,000 | ||||||||||||
Initial spread (as a percent) | 2.61% | ||||||||||||
2015 Perpetual Medium-term Notes | Maximum | |||||||||||||
OTHER EQUITY INSTRUMENTS | |||||||||||||
Margin rate (as a percent) | 3.00% | ||||||||||||
Margin rate term (in years) | 5 years | ||||||||||||
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 | ||||||||||||
Chalco Hong Kong | 2013 Senior Perpetual Securities | |||||||||||||
OTHER EQUITY INSTRUMENTS | |||||||||||||
Repayments for short-term and long term longs | $ 373,000 | ¥ 2,592,000 | |||||||||||
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, net of issuance costs | $ 498,000 | ¥ 3,374,000 | |||||||||||
Initial spread (as a percent) | 2.931% | ||||||||||||
Margin rate (as a percent) | 5.00% |
CONTINGENT LIABILITIES (Details
CONTINGENT LIABILITIES (Details) - Project construction, financing arrangement and others ¥ in Thousands | Dec. 31, 2019CNY (¥) |
Disclosure of contingent liabilities [line items] | |
Contingent liability | ¥ 591 |
Bank accounts or other equivalent assets held to freeze | 214 |
Bank accounts or other equivalent assets freezed | 61 |
Real estate of net book value freezed | ¥ 46 |
COMMITMENTS (Details)
COMMITMENTS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Capital commitments on property, plant and equipment | ||
Contracted, but not provided for | ¥ 4,041,857 | ¥ 3,942,933 |
Disclosure of finance lease and operating lease by lessee [abstract] | ||
Total commitments under operating leases | 12,989,524 | |
Other capital commitments | ||
Capital contribution commitment | 443,800 | 542,800 |
Associates | ||
Other capital commitments | ||
Capital contribution commitment | 33,800 | 82,800 |
Joint ventures | ||
Other capital commitments | ||
Capital contribution commitment | ¥ 410,000 | 460,000 |
Within 1 Year | ||
Disclosure of finance lease and operating lease by lessee [abstract] | ||
Total commitments under operating leases | 541,541 | |
In the second to fifth years, inclusive | ||
Disclosure of finance lease and operating lease by lessee [abstract] | ||
Total commitments under operating leases | 1,880,058 | |
Over 5 years | ||
Disclosure of finance lease and operating lease by lessee [abstract] | ||
Total commitments under operating leases | ¥ 10,567,925 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details) - CNY (¥) ¥ / shares in Units, ¥ in Billions | May 05, 2020 | Mar. 26, 2020 | Mar. 20, 2020 | Mar. 13, 2020 | Feb. 21, 2020 | Feb. 20, 2020 | Feb. 13, 2020 | Jan. 15, 2020 | Jan. 13, 2020 |
Short-term bonds | Issuance of short-term bonds | |||||||||
EVENTS AFTER THE REPORTING PERIOD | |||||||||
Face value | ¥ 1.8 | ¥ 1 | ¥ 1 | ¥ 1 | ¥ 2 | ¥ 1.5 | |||
Par value (RMB per unit) | ¥ 100 | ¥ 100 | ¥ 100 | ¥ 100 | ¥ 100 | ¥ 100 | |||
Interest rate (as a percent) | 2.20% | 2.20% | 2.50% | 2.10% | 2.20% | 2.10% | |||
2025 corporate 3.30% bond | Issuance of corporate bonds | |||||||||
EVENTS AFTER THE REPORTING PERIOD | |||||||||
Face value | ¥ 0.5 | ||||||||
Par value (RMB per unit) | ¥ 100 | ||||||||
Interest rate (as a percent) | 3.30% | ||||||||
2023 corporate 3.05% bond | Issuance of corporate bonds | |||||||||
EVENTS AFTER THE REPORTING PERIOD | |||||||||
Face value | ¥ 1 | ||||||||
Par value (RMB per unit) | ¥ 100 | ||||||||
Interest rate (as a percent) | 3.05% | ||||||||
2023 medium-term 2.93% note | Issuance of medium term notes | |||||||||
EVENTS AFTER THE REPORTING PERIOD | |||||||||
Face value | ¥ 0.9 | ||||||||
Par value (RMB per unit) | ¥ 100 | ||||||||
Interest rate (as a percent) | 2.93% |