CHALIECO Q1 2026: Profit Rises 15% on Margin Gains Despite 10% Revenue Dip

Bulletin Express04-28

China Aluminum International Engineering Corporation Limited (CHALIECO) delivered mixed first-quarter results for the period ended 31 March 2026.

Revenue and Profitability • Operating revenue fell 10.14% year on year to RMB 4.32 billion, reflecting softer project execution in the period. • Net profit attributable to shareholders rose 15.06% to RMB 75.71 million, supported by a 3.06 percentage-point improvement in gross margin driven by cost-control and project management measures. • Excluding non-recurring items of RMB 5.62 million, recurring net profit surged 58.63% to RMB 70.09 million. • Basic and diluted EPS doubled to RMB 0.018. Weighted average ROE increased to 1.78% from 0.98%.

Cash Flow and Balance Sheet • Operating cash outflow narrowed to RMB 325.21 million (Q1 2025: outflow of RMB 385.06 million), yet cash and cash equivalents fell to RMB 1.91 billion from RMB 3.24 billion at the start of the year. • Total assets decreased 3.53% to RMB 39.12 billion, while equity attributable to shareholders edged up 1.20% to RMB 6.88 billion. • Total liabilities declined to RMB 29.87 billion, aided by a reduction in long-term borrowings to RMB 5.62 billion (31 Dec 2025: RMB 6.44 billion).

Contracting Activity Newly signed contracts reached RMB 11.54 billion, up 34.72% year on year. • Industrial contracts contributed RMB 11.39 billion (98.73% of total, +35.58%). • EPC contracts amounted to RMB 6.20 billion (+57.11%). • Overseas contracts surged 132.44% to RMB 2.09 billion, led by projects in Southeast Asia and Africa.

Operational Highlights The company reported on-schedule delivery of several key projects, including the Guangxi Carbon Project and Indonesia Mempawah Aluminum Oxide Plant. Management also highlighted advancements in technology R&D and the establishment of innovation platforms to support future growth.

Outlook Considerations Management continues to focus on “Strengthening Operations, Promoting Transformation, Preventing Risks and Deepening Reform,” with an emphasis on cost discipline, overseas risk controls, and market-oriented reforms. Persistent negative operating cash flow and lower cash balances remain key areas to monitor in upcoming quarters.

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