According to Henan Shenhuo Group's annual report, the company reported CNY 27.99 billion in operating revenues during 2012 down 8.84% YoY and CNY 202 million in profits attributable to shareholders of its listed company also down 82.48%YoY. Its earnings per share declined 82.43% YoY to CNY 0.114 and return on equity also dropped 20.25 percentage points YoY to 3.22%.

The company attributes its falling profits to plunging coal and aluminum prices in 2012. Shenhuo Group sold 451,300 tonnes of aluminum in 2012 down 6.33%, 820,900 tonnes of alumina up 38.62%, 181,600 tonnes of anode carbon up 13.15% and 65,600 tonnes of casting and cold rolling rolls down 35.56%.

Henan Nonferrous Huiyuan Aluminum and Henan Shenhuo New Materials, its subsidiaries were running at full capacity during the report period contributing to a notable increase in its alumina and aluminum hydroxide output. The falling sales volumes of its casting and cold rolling rolls were explained by decreasing orders at its subsidiaries Yangguang Aluminum Semis and Henan Shenhuo International Trade.

600 MW generating units at its subsidiary Henan Shenhuo Power Generation which are able to run at full capacity for 168 hours have entered full operations. This will help reduce Shenhuo Group’s aluminum production costs and increase its profits in 2013.

The company has set itself a target of producing 9 million tonnes of coal for commercial use this year, 630,000 tonnes of aluminum, 80,000 tonnes of aluminum semis, 800,000 tonnes of alumina, 100,000 tonnes of aluminum hydroxide and generating 5.8 billion KWH of electricity. It expects to book CNY 27 billion in operating revenues on CNY 26.3 billion in costs.