Aluminum Corporation of China Ltd (Chalco), reported a 99.9 percent plunge in full-year net profit to 9.2 million yuan ($1.35 million) in 2008, due to product price fluctuations on the international market, the company's annual report revealed Monday.
"The company suffered major losses from the snowstorm at the beginning of last year, and the earthquake disaster," said the statement.
The shock from the financial crisis, rises in raw material prices and consecutive plunges of finished product prices had posted "unprecedented difficulties and challenges" for the company, said the statement.
Chalco's business turnover reached 76.73 billion yuan, down 9.94 percent from last year, largely because of a decline in product prices, said a statement submitted to the Shanghai Stock Exchange.
The price of alumina, a major type of aluminum product, which at one point reached 4,500 yuan per ton in the domestic market in 2008, dropped to 1,900 yuan per ton as demand shrank drastically because of the financial crisis, said the statement.
Board chairman Luo Jianchuan said the company should actively cope with the problem, which would persist in 2009. Measures should be taken to cut cost, control investment, and maintain stable production.
Though estimated to suffer losses in the first quarter this year, Chalco was confident it would "get over the difficulties and have a bright prospect," said Luo.
Share prices of Chalco on Shanghai Stock Exchange plunged more than 4 percent to 10.46 yuan Monday morning.
Aluminum Corporation of China (Chinalco), Chalco's parent company, had obtained support from four Chinese banks, including the Bank of China (BOC), to finance its bid for the world's third largest miner Rio Tinto.
They have signed agreements to provide $21 billion worth of syndicated loans to support the bid.