Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Disclosure of classes of share capital [line items] | |
Entity Registrant Name | ALUMINUM CORP OF CHINA LTD |
Entity Central Index Key | 0001161611 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Domestic Shares | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 10,959,832,268 |
H Shares | |
Disclosure of classes of share capital [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, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Non-current assets | |||
Intangible assets | $ 1,873,226 | ¥ 12,879,365 | ¥ 10,637,633 |
Property, plant and equipment | 15,445,185 | 106,193,369 | 95,627,577 |
Investment properties | 168,134 | 1,156,006 | 1,332,370 |
Land use rights | 622,543 | 4,280,291 | 3,577,012 |
Investments in joint ventures | 493,542 | 3,393,349 | 6,007,624 |
Investments in associates | 925,527 | 6,363,462 | 6,935,030 |
Available-for-sale investments | 1,928,201 | ||
Equity investments designated at fair value through other comprehensive income | 251,593 | 1,729,825 | |
Deferred tax assets | 224,357 | 1,542,569 | 1,606,150 |
Other non-current assets | 646,156 | 4,442,644 | 3,520,892 |
Total non-current assets | 20,650,263 | 141,980,880 | 131,172,489 |
Current assets | |||
Inventories | 2,975,735 | 20,459,668 | 20,547,556 |
Trade and notes receivables | 1,178,174 | 8,100,532 | 8,008,937 |
Other current assets | 1,312,334 | 9,022,953 | 10,074,225 |
Financial assets at fair value through profit or loss | 2,348 | 16,141 | 9,534 |
Restricted cash | 314,928 | 2,165,288 | 2,168,192 |
Cash and cash equivalents | 2,782,438 | 19,130,652 | 27,835,866 |
Total current assets | 8,565,957 | 58,895,234 | 68,644,310 |
Total assets | 29,216,220 | 200,876,114 | 199,816,799 |
Equity attributable to owners of the parent | |||
Share capital | 2,167,668 | 14,903,798 | 14,903,798 |
Other reserves | 5,865,402 | 40,327,573 | 28,116,602 |
Accumulated losses | (409,640) | (2,816,481) | (3,332,371) |
Equity attributable to owners of the parent | 7,623,430 | 52,414,890 | 39,688,029 |
Non-controlling interests | 2,218,648 | 15,254,312 | 26,054,567 |
Total equity | 9,842,078 | 67,669,202 | 65,742,596 |
Non-current liabilities | |||
Interest-bearing loans and borrowings | 7,884,137 | 54,207,386 | 40,289,703 |
Other non-current liabilities | 354,616 | 2,438,164 | 2,453,660 |
Deferred tax liabilities | 263,662 | 1,812,805 | 993,742 |
Total non-current liabilities | 8,502,415 | 58,458,355 | 43,737,105 |
Current liabilities | |||
Trade and notes payables | 2,037,321 | 14,007,600 | 12,360,441 |
Other payables and accrued liabilities | 1,677,333 | 11,532,504 | 14,692,899 |
Contract liabilities | 229,703 | 1,579,322 | |
Financial liabilities at fair value through profit or loss | 257 | 1,766 | 89,426 |
Income tax payable | 16,549 | 113,783 | 213,262 |
Interest-bearing loans and borrowings | 6,910,564 | 47,513,582 | 62,981,070 |
Total current liabilities | 10,871,727 | 74,748,557 | 90,337,098 |
Total liabilities | 19,374,142 | 133,206,912 | 134,074,203 |
Total equity and liabilities | 29,216,220 | 200,876,114 | 199,816,799 |
Net current liabilities | 2,305,770 | 15,853,323 | 21,692,788 |
Total assets less current liabilities | $ 18,344,493 | ¥ 126,127,557 | ¥ 109,479,701 |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018CNY (¥)¥ / shares | Dec. 31, 2017CNY (¥)¥ / shares | Dec. 31, 2016CNY (¥)¥ / shares | |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||
Revenue | $ 26,214,843 | ¥ 180,240,154 | ¥ 181,020,428 | ¥ 144,854,582 |
Cost of sales | (24,293,421) | (167,029,416) | (166,290,235) | (133,700,192) |
Gross profit | 1,921,422 | 13,210,738 | 14,730,193 | 11,154,390 |
Selling and distribution expenses | (363,164) | (2,496,933) | (2,372,966) | (2,111,787) |
General and administrative expenses | (575,677) | (3,958,067) | (4,549,206) | (3,336,095) |
Research and development expenses | (91,175) | (626,873) | (498,234) | (168,862) |
Impairment loss on property, plant and equipment | (1,084) | (7,450) | (16,200) | (57,080) |
Impairment losses on financial assets | (15,685) | (107,841) | ||
Impairment losses on investments in joint ventures | (31,555) | (216,953) | ||
Other income | 19,688 | 135,367 | 89,873 | 155,576 |
Other gains, net | 134,085 | 921,904 | 319,382 | 169,143 |
Finance income | 71,592 | 492,232 | 706,690 | 815,729 |
Finance costs | (710,130) | (4,882,496) | (5,203,424) | (5,019,908) |
Share of profits and losses of: | ||||
Joint ventures | (29,009) | (199,452) | 8,151 | (95,508) |
Associates | 5,721 | 39,335 | (165,249) | 115,091 |
Profit before income tax | 335,029 | 2,303,511 | 3,049,010 | 1,620,689 |
Income tax benefit/(expense) | (119,628) | (822,499) | (643,734) | (403,899) |
Profit for the year | 215,401 | 1,481,012 | 2,405,276 | 1,216,790 |
Profit attributable to: | ||||
Owners of the parent | 108,567 | 746,477 | 1,413,028 | 365,697 |
Non-controlling interests | 106,834 | 734,535 | 992,248 | 851,093 |
Profit for the year | 215,401 | 1,481,012 | 2,405,276 | 1,216,790 |
Available-for-sale investments: | ||||
Changes in fair value | (5,206) | 104,103 | ||
Reclassification adjustments for gains included in profit or loss | ||||
Gain on disposal | (45,039) | (102,854) | ||
Income tax effect | 11,180 | (13,288) | ||
Transfer out other comprehensive income of an associate | (4,658) | |||
Exchange differences on translation of foreign operations | (17,563) | (120,756) | (634,793) | 657,531 |
Net other comprehensive income that may be reclassified to profit or loss in subsequent periods | (17,563) | (120,756) | (673,858) | 640,834 |
Equity investments designated at fair value through other comprehensive income: | ||||
Change in fair value | (2,253) | (15,491) | ||
Income tax effect | 548 | 3,769 | ||
Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods | (1,705) | (11,722) | ||
Total other comprehensive income/(loss), net of tax | (19,268) | (132,478) | (673,858) | 640,834 |
Total comprehensive income for the year | 196,133 | 1,348,534 | 1,731,418 | 1,857,624 |
Total comprehensive income for the year attributable to: | ||||
Owners of the parent | 89,395 | 614,638 | 739,170 | 1,006,531 |
Non-controlling interests | 106,738 | 733,896 | 992,248 | 851,093 |
Total comprehensive income for the year | $ 196,133 | ¥ 1,348,534 | ¥ 1,731,418 | ¥ 1,857,624 |
Basic and diluted earnings per share attributable to ordinary equity holders of the parent (expressed in RMB per share) | (per share) | $ 0.0054 | ¥ 0.037 | ¥ 0.087 | ¥ 0.017 |
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 assetsCNY (¥) | Other equity instrumentsCNY (¥) | Foreign currency translation reserveCNY (¥) | Retained earnings (Accumulated losses)CNY (¥) | Non-controlling interestsCNY (¥) | USD ($) | CNY (¥) |
At January 1, at Dec. 31, 2015 | ¥ 40,051,282 | ¥ 14,903,798 | ¥ 20,747,839 | ¥ 932,588 | ¥ 5,867,557 | ¥ 100,018 | ¥ 62,598 | ¥ 2,019,288 | ¥ 312,538 | ¥ (4,894,942) | ¥ 11,937,634 | ¥ 51,988,916 | |
Add: Adjustment due to business combinations under common control (note 38) | 173,868 | 169,242 | 4,626 | 12,404 | 186,272 | ||||||||
At December 31, at Jan. 01, 2016 | 40,225,150 | 14,903,798 | 20,917,081 | 932,588 | 5,867,557 | 100,018 | 62,598 | 2,019,288 | 312,538 | (4,890,316) | 11,950,038 | 52,175,188 | |
At January 1, at Dec. 31, 2015 | 40,051,282 | 14,903,798 | 20,747,839 | 932,588 | 5,867,557 | 100,018 | 62,598 | 2,019,288 | 312,538 | (4,894,942) | 11,937,634 | 51,988,916 | |
Profit for the year | 365,697 | 365,697 | 851,093 | 1,216,790 | |||||||||
Other comprehensive income for the year | |||||||||||||
Changes in fair value of available-for-sale financial assets, net of tax | 90,815 | 90,815 | 90,815 | ||||||||||
Disposal of available-for-sale financial assets, net of tax | (102,854) | (102,854) | (102,854) | ||||||||||
Transfer out of share of other comprehensive income of an associate | (4,658) | (4,658) | (4,658) | ||||||||||
Exchange differences on translation of foreign operations | 657,531 | 657,531 | 657,531 | ||||||||||
Total comprehensive income for the year | 1,006,531 | (16,697) | 657,531 | 365,697 | 851,093 | 1,857,624 | |||||||
Release of deferred government subsidies | 20,290 | 20,290 | 20,290 | ||||||||||
Business combinations under common control (note 38) | (3,010,627) | (3,010,627) | (3,010,627) | ||||||||||
Dividends distributed by subsidiaries to non-controlling shareholders | (8,941) | (8,941) | |||||||||||
Capital injection from non-controlling shareholders | 176,615 | 176,615 | 1,661,925 | 1,838,540 | |||||||||
Other appropriations | 23,215 | 23,215 | (13,376) | 9,839 | |||||||||
Share of reserves of joint ventures and associates | 8,969 | 8,969 | 8,969 | ||||||||||
Issuance of perpetual medium-term notes | (3,513,068) | (3,513,068) | |||||||||||
Perpetual medium-term notes' dividends | (324,762) | (324,762) | |||||||||||
Other equity instruments' distribution | (110,000) | (110,000) | (110,000) | ||||||||||
At December 31, 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 | |
At January 1, at Dec. 31, 2016 | 38,168,298 | 14,903,798 | 17,913,827 | 952,878 | 5,867,557 | 131,510 | 45,901 | 2,019,288 | 970,069 | (4,636,530) | 17,618,510 | 55,786,808 | |
Add: Adjustment due to business combinations under common control (note 38) | 171,845 | 169,242 | 692 | 1,911 | 10,535 | 182,380 | |||||||
At December 31, at Jan. 01, 2017 | 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 | |
At January 1, at Dec. 31, 2016 | 38,168,298 | 14,903,798 | 17,913,827 | 952,878 | 5,867,557 | 131,510 | 45,901 | 2,019,288 | 970,069 | (4,636,530) | 17,618,510 | 55,786,808 | |
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 | 1,413,028 | 1,413,028 | 992,248 | 2,405,276 | |||||||||
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 | 739,170 | (39,065) | (634,793) | 1,413,028 | 992,248 | 1,731,418 | |||||||
Business combinations under common control (note 38) | (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 from the parent company | 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 by a subsidiary | (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 | 39,688,029 | 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 | |
Equity other information | |||||||||||||
Other reserves | 28,116,602 | ||||||||||||
At January 1, at Dec. 31, 2017 | 39,478,450 | 14,903,798 | 18,616,551 | 952,878 | 5,867,557 | 144,361 | 6,836 | 2,019,288 | 335,276 | (3,368,095) | 26,035,429 | 65,513,879 | |
Add: Adjustment due to business combinations under common control (note 38) | 209,579 | 171,282 | 2,573 | 35,724 | 19,138 | 228,717 | |||||||
Effect of adoption of IFRS 9 (note 2.2) | (122,511) | 10,835 | (133,346) | (16,925) | (139,436) | ||||||||
At December 31, at Jan. 01, 2018 | 39,565,518 | 14,903,798 | 18,787,833 | 952,878 | 5,867,557 | 146,934 | 17,671 | 2,019,288 | 335,276 | (3,465,717) | 26,037,642 | 65,603,160 | |
At January 1, at Dec. 31, 2017 | 39,478,450 | 14,903,798 | 18,616,551 | 952,878 | 5,867,557 | 144,361 | 6,836 | 2,019,288 | 335,276 | (3,368,095) | 26,035,429 | 65,513,879 | |
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 | |
Profit for the year | 746,477 | 746,477 | 734,535 | $ 215,401 | 1,481,012 | ||||||||
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 | 614,638 | (11,083) | (120,756) | 746,477 | 733,896 | 196,133 | 1,348,534 | ||||||
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 (note 38) | (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 | 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 from the parent company | 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 | (11,166) | (11,166) | 1,468,435 | 1,457,269 | |||||||||
Other appropriations | 8,119 | 8,119 | (1,514) | 6,605 | |||||||||
Share of reserves of joint ventures and associates | 2,051 | 2,051 | 2,051 | ||||||||||
Repayment of senior perpetual securities by a subsidiary | (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 | ¥ 52,414,890 | ¥ 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 | 9,842,078 | 67,669,202 |
Equity other information | |||||||||||||
Other reserves | $ 5,865,402 | ¥ 40,327,573 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Net cash flows from operating activities | $ 1,893,415 | ¥ 13,018,176 | ¥ 13,205,572 | ¥ 11,609,309 |
Investing activities | ||||
Purchases of intangible assets | (15,025) | (103,304) | (418,203) | (286,282) |
Purchases of property, plant and equipment | (981,148) | (6,745,880) | (8,891,794) | (6,327,839) |
Purchase of land use rights | (413) | (2,838) | (59,215) | (20,963) |
Purchases of investment properties | (41,982) | |||
Proceeds from disposal of property, plant and equipment | 82,145 | 564,791 | 460,982 | 271,609 |
Proceeds from disposal of intangible assets | 11,730 | |||
Proceeds from disposal of land use rights | 5,824 | |||
Proceeds from disposal of a joint venture and an associate | 4,482 | 30,816 | ||
Acquisition of a subsidiaries | 37,183 | 255,650 | 255,152 | |
Proceeds from disposal and deemed disposal of subsidiaries and business, net of cash | 954 | 6,558 | 5,631,298 | 6,200,670 |
Interest received from unpaid disposal proceeds | 117,586 | 353,665 | ||
Interest received from loans and borrowings to others | 118,015 | 31,723 | ||
Investments in joint ventures | (13,090) | (90,000) | (15,414) | (1,134,512) |
Investments in associates | (38,732) | (266,300) | (857,317) | (30,000) |
(Purchase of)/return of investment from equity investments | 28,798 | 198,000 | (1,848,000) | |
Proceeds from dividends and disposal of equity investments | 15,986 | 109,914 | 124,536 | 490,309 |
Dividend received | 47,703 | 327,983 | 44,960 | 65,083 |
Decrease in time deposits | 72,700 | (21,700) | ||
Cash paid for settlement of futures, options and forward contracts | (1,933) | (13,288) | 93,677 | (2,006,583) |
Loans to related parties | (1,600,000) | (547,957) | ||
Loans repaid by related parties | 4,685 | 32,215 | 1,010,169 | 213,354 |
Asset-related government grants received | 24,335 | 167,314 | 145,825 | 164,547 |
Net cash flows used in investing activities | (804,070) | (5,528,369) | (5,597,489) | (2,626,858) |
Financing activities | ||||
Proceeds from a gold leasing arrangement | 337,882 | 2,323,105 | 7,804,083 | 3,000,000 |
Repayments of gold leasing arrangement | (1,093,634) | (7,519,283) | (4,000,000) | |
Purchase of non-controlling interest | (548) | (3,765) | (1,413,289) | |
Proceeds from issuance of bonds and notes, net of issuance costs | 1,917,684 | 13,185,034 | 3,478,550 | 11,070,660 |
Repayments of senior perpetual securities | (351,648) | (2,417,758) | (2,895,910) | |
Proceeds from issuance of perpetual securities, net of issuance costs | 289,143 | 1,988,000 | 3,513,068 | |
Repayments of bonds and notes | (3,172,860) | (21,815,000) | (16,300,000) | (13,500,000) |
Senior perpetual securities distribution paid | (59,712) | (410,548) | (501,933) | (434,762) |
Drawdown of short-term and long-term loans | 11,184,582 | 76,899,591 | 83,758,749 | 44,733,924 |
Repayments of short-term and long-term loans | (10,260,568) | (70,546,537) | (78,866,459) | (48,659,566) |
Cash consideration paid for business combination under common control | (54,323) | (373,495) | (176,848) | (2,456,512) |
Proceeds from sale and leaseback finance leases, net of deposit and transaction costs | 175,237 | 1,204,843 | 1,000,036 | 1,527,085 |
Capital injection from the parent company to the entity acquired under common control | 10,164 | 69,885 | ||
Finance lease instalment paid | (569,472) | (3,915,404) | (2,462,250) | (1,580,986) |
Capital injection from non-controlling shareholders | 121,827 | 837,621 | 12,718,761 | 1,838,540 |
Dividends paid by subsidiaries to non-controlling shareholders | (47,654) | (327,645) | (309,465) | (20,481) |
Interest paid | (791,960) | (5,445,120) | (5,233,019) | (5,136,227) |
Net cash flows used in financing activities | (2,365,860) | (16,266,476) | (3,398,994) | (6,105,257) |
Net increase/(decrease) in cash and cash equivalents | (1,276,515) | (8,776,669) | 4,209,089 | 2,877,194 |
Cash and cash equivalents at beginning of year | 4,048,559 | 27,835,866 | 23,848,344 | 20,779,604 |
Effect of foreign exchange rate changes, net | 10,394 | 71,455 | (221,567) | 191,546 |
Cash and cash equivalents at December 31 | $ 2,782,438 | ¥ 19,130,652 | ¥ 27,835,866 | ¥ 23,848,344 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
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 10 September 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 Place of equity 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 74.33 % — 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 % — Shanxi Huasheng Aluminum Co., Ltd. (“Shanxi Huasheng“) (山西華聖鋁業有限公司) PRC/Mainland China 1,000,000 Manufacture and distribution of primary aluminum, aluminum alloy and carbon-related products 51.00 % — 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 % — Zunyi Aluminum Co., Ltd. (遵義鋁業股份有限公司) PRC/Mainland China 3,204,899 Manufacture and distribution of primary aluminum and alumina 67.445 % — Shandong Huayu Alloy Materials Co., Ltd. (“Shandong Huayu”) (山東華宇合金材料有限公司) PRC/Mainland China 1,627,697 Manufacture and distribution of aluminum alloy 55.00 % — 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 18.86 % — Chalco Energy Co., Ltd. (中鋁能源有限公司) PRC/Mainland China 819,993 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 Place of equity attributable to the 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 214,858 Research and development services 100.00 % — Chalco Shandong Co., Ltd. ("Chalco Shandong“) (中鋁山東有限公司) PRC/Mainland China 3,808,995 Manufacture and distribution of alumina 69.20 % — Chalco Zhongzhou Aluminum Co., Ltd. ("Zhongzhou Aluminum“) (中鋁中州鋁業有限公司) PRC/Mainland China 5,071,235 Manufacture and distribution of alumina 63.10 % — China Aluminum Logistics Group Corporation Co., Ltd. (中鋁物流集團有限公司) PRC/Mainland China 558,752 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 270,000 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 968,300 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 1,641,750 Manufacture and distribution of primary aluminum 40.00 % — Guizhou Huaren New Material Co., Ltd. (“Guizhou Huaren”) (貴州華仁新材料有限公司) PRC/Mainland China 1,200,000 Manufacture and distribution of primary aluminum 40.00 % — China Aluminum International Trading Group Co. Ltd. (中鋁國際貿易集團有限公司) PRC/Mainland China 1,030,000 Import and export activities 100.00 % — Chalco Materials Co. Ltd. (中鋁物資有限公司) PRC/Mainland China 1,000,000 Purchase materials 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, 2018 | |
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 under the historical cost convention, except for equity investments at fair value through other comprehensive income and financial assets and liabilities at fair value through profit or loss which have been measured at fair value. These financial statements are presented in thousands of Chinese Renminbi ("RMB") unless otherwise stated. Going concern As at December 31, 2018, the Group’s current liabilities exceeded its current assets by approximately RMB15,853 million (December 31, 2017: RMB21,693 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 2019; · Unutilized banking facilities of approximately RMB121,518 million as at December 31, 2018, of which amounts totalling RMB92,582 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, 2018. 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, 2018. 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. The financial statements of the subsidiaries are prepared for the same reporting period as the Company using consistent accounting policies. 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 or 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. 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 combinations 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 the 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 profit or loss and other 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 which 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 The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group, other than common control combinations. The considerations transferred for the acquisition of a subsidiary are the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability 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 their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The excess of the consideration transferred, the amount recognized for non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. 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 proportionate share of net assets in the event of liquidation at fair value or at the proportionate share of the acquiree's identifiable net assets. All other components of non-controlling interests are measured at fair value. Acquisition-related costs are expensed as incurred. 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. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not remeasured and subsequent settlement is accounted for within equity. (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 2 Classification and Measurement of Share-based Payment Transactions Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers Amendments to IFRS 15 Clarifications to IFRS 15 Revenue from Contracts with Customers Amendments to IAS 40 Transfers of Investment Property IFRIC 22 Foreign Currency Transactions and Advance Consideration Annual Improvements 2014-2016 Cycle Amendments to IFRS 1 and IAS 28 Except for the amendments to IFRS 4 and Annual Improvements 2014-2016 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) (b) 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. Classification and measurement The following information sets out the impacts of adopting IFRS 9 on the consolidated statement of financial position, including the effect of replacing IAS 39's incurred credit loss calculations with IFRS 9’s expected credit losses (“ECLs”). A reconciliation between the carrying amounts under IAS 39 and the balances reported under IFRS 9 as at January 1, 2018 is as follows: IAS 39 IFRS 9 measurement measurement Fair value Notes Category Amount Re-classification ECL adjustment Amount Category RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 Assets Financial assets Trade and notes receivables L&R 8,008,937 — (112,407) — 7,896,530 AC Other current assets L&R 6,487,548 — (38,502) — 6,449,046 AC Other non-current assets L&R 261,156 — — — 261,156 AC Financial Assets at fair value through profit or loss FVPL 9,534 — — — 9,534 FVPL Cash and cash equivalents L&R 27,835,866 — — — 27,835,866 AC Restricted cash L&R 2,168,192 — — — 2,168,192 AC Available-for-sale financial investments (i) AFS 1,928,201 (1,928,201) — — — N/A Equity investments designated at fair value through other comprehensive income (i) N/A — 1,928,201 — 15,114 1,943,315 FVOCI (Equity) 46,699,434 — (150,909) 15,114 46,563,639 Total assets 199,816,799 — (150,909) 15,114 199,681,004 Liabilities Other liabilities Deferred tax liabilities 993,742 — — 3,641 997,383 Total Liabilities 134,074,203 — — 3,641 134,077,844 1 L&R: Loans and receivables 2 AC: Financial assets or financial liabilities at amortized cost 3 FVPL: Financial assets at fair value through profit or loss 4 AFS: Available-for-sale investments 5 FVOCI: Financial assets at fair value through other comprehensive income Notes: The Group has elected the option to irrevocably designate certain of its previous available-for-sale equity investments as equity investments at fair value through other comprehensive income. Impairment The following table reconciles the aggregate opening impairment allowances under IAS 39 to the ECL allowances under IFRS 9. Re-measurement equals to the effect of adoption of IFRS 9 in note 14 and note 15. Impairment allowances ECL allowances under IAS 39 Re-measurement under IFRS 9 at December 31, 2017 (note 14/note 15) at January 1, 2018 RMB'000 RMB'000 RMB'000 Trade receivables 546,102 112,407 658,509 Other current assets 1,673,122 38,502 1,711,624 2,219,224 150,909 2,370,133 Impact on reserves and accumulated losses The impact of transition to IFRS 9 on reserves and accumulated losses is as follows: Reserves and losses RMB'000 Fair value reserve under IFRS 9 (gain on available-for-sale financial assets under IAS 39) Balance as at December 31, 2017 under IAS 39 6,836 Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 14,263 Deferred tax in relation to the above (3,428) Balance as at January 1, 2018 under IFRS 9 17,671 Accumulated losses Balance as at December 31, 2017 under IAS 39 (3,368,095) Adjustment due to business combinations under common control (note 38) 35,724 Recognition of expected credit losses for trade receivables under IFRS 9 (94,844) Recognition of expected credit losses for current financial assets at amortized cost under IFRS 9 (38,502) Balance as at January 1, 2018 under IFRS 9 (3,465,717) Non-controlling interests Balance as at December 31, 2017 under IAS 39 26,035,429 Adjustment due to business combinations under common control (note 38) 19,138 Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 851 Recognition of expected credit losses for trade receivables under IFRS 9 (17,563) Deferred tax in relation to the above (213) Balance as at January 1, 2018 under IFRS 9 26,037,642 (c) Construction Contracts , IAS 18 Revenue and related interpretations and it applies, with limited exceptions, to all revenue arising from contracts with customers. IFRS 15 establishes a new five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in IFRS 15 provide a more structured approach for measuring and recognising revenue. The standard also introduces extensive qualitative and quantitative disclosure requirements, including disaggregation of total revenue, information about performance obligations, changes in contract asset and liability account balances between periods and key judgements and estimates. The disclosures are included in note 4 to the financial statements. As a result of the application of IFRS 15, the Group has changed the accounting policy with respect to revenue recognition in note 2.27 to the financial statements. The Group has adopted IFRS 15 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. The nature of the adjustments as at January 1, 2018 and the reasons for the significant changes in the consolidated statement of financial position as at December 31, 2018 are described below: Consideration received from customers in advance Before the adoption of IFRS 15, the Group recognized consideration received from customers in advance as other payables. Under IFRS 15, the amount is classified as contract liabilities. Therefore, upon adoption of IFRS 15, the Group reclassified RMB1,372 million from other payables to contract liabilities as at January 1, 2018 in relation to the consideration received from customers in advance as at January 1, 2018. As at December 31, 2018, under IFRS 15, RMB1,579 million was recorded as contract liabilities in relation to the consideration received from customers in advance for the sale of industrial products. (d) 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. The main effects of retrospective adjustments caused by the above accounting policy change on financial statements are as follows: After change in Before change in Reclassification on accounting policy accounting policy change in December 31, Consolidated statement of financial position December 31, 2017 accounting policy Assets: Property, plant and equipment 96,430,815 (803,238) 95,627,577 Land use rights 3,746,602 (169,590) 3,577,012 Intangible Assets 10,653,175 (15,542) 10,637,633 110,830,592 (988,370) 109,842,222 Total assets 200,805,169 (988,370) 199,816,799 Liabilities: Other non-current liabilities 3,442,030 (988,370) 2,453,660 Total liabilities 135,062,573 (988,370) 134,074,203 After change in Before change in Reclassification on accounting policy accounting policy change in December 31, Consolidated statement of profit or loss and other comprehensive income December 31, 2017 accounting policy Cost of sales (166,494,842) 204,607 (166,290,235) General and administration expenses (4,604,055) 54,849 (4,549,206) Other income 349,329 (259,456) 89,873 (170,749,568) — (170,749,568) Profit before tax 3,049,010 — 3,049,010 Before change in Reclassification on After change in accounting policy change in accounting policy Consolidated statement of financial position December 31, 2018 accounting policy December 31, 2018 Assets: Property, plant and equipment 107,066,073 (872,704) 106,193,369 Land use rights 4,484,055 (203,764) 4,280,291 Intangible Assets 12,881,804 (2,439) 12,879,365 Other non-current assets 4,446,938 (4,294) 4,442,644 128,878,870 (1,083,201) 127,795,669 Total assets 201,959,315 (1,083,201) 200,876,114 Liabilities: Other non-current liabilities 3,521,365 (1,083,201) 2,438,164 Total liabilities 134,290,113 (1,083,201) 133,206,912 Before change in Reclassification on After change in accounting policy change in accounting policy Consolidated statement of profit or loss and other comprehensive income December 31, 2018 accounting policy December 31, 2018 Cost of sales (167,254,868) 225,452 (167,029,416) General and administration expenses (4,540,590) 582,523 (3,958,067) Research and development expenses (630,815) 3,942 (626,873) Selling and distribution expenses (2,496,977) 44 (2,496,933) Other income 947,328 (811,961) 135,367 (173,975,922) — (173,975,922) Profit before tax 2,303,511 — 2,303,511 (e) (f) 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 2 Amendments to IFRS 9 Prepayment Features with Negative Compensation 1 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 4 IFRS 16 Leases 1 IFRS 17 Insurance Contracts 3 Amendments to IAS 1 and IAS 8 Definition of Material 2 Amendments to IAS 19 Plan Amendment, Curtailment or Settlement 1 Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures 1 IFRIC 23 Uncertainty over Income Tax Treatments1 Annual Improvements 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 1 1 Effective for annual periods beginning on or after January 1, 2019 2 Effective for annual periods beginning on or after January 1, 2020 3 Effective for annual periods beginning on or after January 1, 2021 4 No mandatory effective date yet determined but available for adoption Further information about those IFRSs that are expected to be applicable to the Group is described below. 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. Amendments to IFRS 10 and IAS 28 address an inconsistency between the requirements in IFRS 10 and in IAS 28 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 previous mandatory effective date of amendments to IFRS 10 and IAS 28 was removed by the IASB in January 2016 and a new mandatory effective date will be determined after the completion of a broader review of accounting for associates and joint ventures. However, the amendments are available for adoption now. IFRS 16 replaces IAS 17 Leases , IFRIC Interpretation 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 recognize assets and liabilities for most leases. The standard includes two elective recognition exemptions for lessees – leases of low-value assets and short-term leases. At the commencement date of a lease, a lessee will recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The right-of-use asset is subsequently measured at cost less accumulated depreciation and any impairment losses unless the right-of-use asset meets the definition of investment property in IAS 40, or relates to a class of property, plant and equipment to which the revaluation model is applied. The lease liability is subsequently increased to reflect the interest on the lease liability and reduced for the lease payments. Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees will also be required to remeasure the lease liability upon the occurrence of certain events, such as change in the lease term and change in future lease payments resulting from a change in an index or rate used to determine those payments. Lessees will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Lessor accounting under IFRS 16 is substantially unchanged from the accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between operating leases and finance leases. IFRS 16 requires lessees and lessors to make more extensive disclosures than under IAS 17. Lessees can choose to apply the standard using either a full retrospective or a modified retrospective approach. The Group will adopt IFRS 16 from January 1, 2019. The Group plans to adopt the transitional provisions in IFRS 16 to recognize the cumulative effect of initial adoption as an adjustment to the opening balance of accumulated losses at January 1, 2019 and will not restate the comparatives. In addition, the Group plans to apply the new requirements to contracts that were previously identified as leases applying IAS 17 and measure the lease liability at the present value of the remaining lease payments, discounted using the Group's incremental borrowing rate at the date of initial application. The right-of-use asset will be 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 statement of financial position immediately before the date of initial application. The Group plans to use the exemptions allowed by the standard on lease contracts whose lease terms end within 12 months as of the date of initial application. During 2018, the Group has performed a detailed assessment on the impact of adoption of IFRS 16. The Group has estimated that right-of-use assets of RMB6,929 million and lease liabilities of RMB6,929 million will be recognized at January 1, 2019. 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 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 expects to adopt the amendments on January 1, 2019 and will assess its business model for such long-term interests based on the facts and circumstances that exist on January 1, 2019 using the transitional requirements in the amendments. The Group also intends to apply the relief from restating comparative information for prior periods upon adoption of the amendments. IFRIC-Int 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 |
SIGNIFICANT ACCOUNTING ESTIMATE
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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 At December 31, 2018, 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, 2018, the Group owned a 14.62% equity interest in China Rare Earth Co., Ltd. * ("China Rare Earth ”) (中國稀有稀土有限公司). The Group considers that it has significant influence over China Rare Earth 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 China Rare Earth. At December 31, 2018, the Group owned 17.7% 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, 2018, 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, 2018, 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, 2018, 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. As disclosed in note 38, the Company holds 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"), 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. As disclosed in note 38, the Company holds 40% of the shares of Shanxi China Aluminum China Resources Co., Ltd.* ("Shanxi Zhongrun") (山西中鋁華潤有限公司). In accordance with the acting-in-concert agreement signed between the Company and China Resources Coal Industry Group Co., Ltd. ("China Resources Coal Industry"), China Resources Coal Industry would exercise the shareholders’ and board of directors’ votes in concert with the Group. Therefore, the directors of the Company believe that the Company has control over Shanxi Zhongrun and consolidated Shanxi Zhongrun’s financial statements from the date the Group obtained control. (c) Determination of control over structured entities As disclosed in note 10, 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. (d) Lease classification As disclosed in note 20, the Group has entered into several sales and lease back agreements with third party leasing companies and related party leasing companies. The Group assessed the terms in the agreements and considered that the Group had substantially all the risks and rewards of ownership and treated them as finance leases. * 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 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 expected production and sales volumes, selling 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 net 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 - 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) 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 analysed. 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 14 to the financial statements. (d) Estimated impairment of inventories In accordance with the Group’s accounting policy, the Group’s management tests whether inventories suffered any impairment based on the estimates of the net realisable 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 realisable amount of inventories. For inventories held for executed sales contracts, management estimates the net realisable amount based on the contracted price; for other inventories, management estimates the realisable future price based on the actual prices during the period from the end of the reporting period to the date that these financial statements were approved for issue by the board of directors of the Company and takes into account the nature and balance of inventories and future estimated price trends. For raw materials and work-in-progress, management has established a model in estimating the net realisable 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. (e) 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. (f) 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 and 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 the likely timing and level of future taxable profits together with future tax planning strategies. 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. (g) Goodwill - recoverable amount In accordance with the Group’s accounting policy, goodwill is allocated to the Group’s cash generating units 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 by preparing a formal estimate of the recoverable amount. The recoverable amount is the higher of value in use and the fair value less costs of disposal. Similar considerations to those described above in respect of assessing the recoverable amount of property, plant and equipment also apply to goodwill. (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 exists, an estimate of the recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of the investment in a joint venture and an associate is measured at the higher of fair value less costs of disposal and value in use. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. Value in use is also generally determined as the present value of the estimated future cash flows of those expected to arise from the continued use of the asset in its present form and its eventual disposal. Present values are determined using a risk-adjusted pre-tax discount rate appropriate to the risks inherent in the asset. Future cash flow estimates are based on expected production and sales volumes, commodity prices (considering current and historical prices, price trends and related factors) and operating costs. This policy requires management to make these estimates and assumptions which are subject to risk and uncertainty; hence there is a possibility that changes in circumstances will alter these projections, which may impact on the recoverable amounts of the investments. In such circumstances, some or all of the carrying value of the investments may be impaired and the impairment would be charged against profit or loss. |
REVENUE AND SEGMENT INFORMATION
REVENUE AND SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE AND SEGMENT INFORMATION | |
REVENUE AND SEGMENT INFORMATION | 4. REVENUE AND SEGMENT INFORMATION (a) Revenue Revenue recognized during the years is as follows: Sales of goods (net of value-added tax) 144,564,755 180,704,153 179,784,444 Rendering of services 123,966 163,732 215,557 Rental income 165,861 152,543 240,153 144,854,582 181,020,428 180,240,154 Other revenue primarily includes revenue from the sale of scrap and other materials, the supply of heat and water and the provision of machinery processing, transportation and 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 7,019,716 141,979,219 667,095 (67,632,024) 179,784,444 Rendering of services — — 215,557 — — — 215,557 Total revenue 43,979,059 53,771,379 7,235,273 141,979,219 667,095 (67,632,024) 180,000,001 Geographical markets Mainland China 43,979,059 53,771,379 7,235,273 132,762,660 667,095 (67,632,024) 170,783,442 Outside of mainland China — — — 9,216,559 — — 9,216,559 Total revenue 43,979,059 53,771,379 7,235,273 141,979,219 667,095 (67,632,024) 180,000,001 Timing of revenue recognition Goods transferred at a point in time 43,979,059 53,771,379 7,019,716 141,979,219 667,095 (67,632,024) 179,784,444 Services transferred over time — — 215,557 — — — 215,557 Total revenue 43,979,059 53,771,379 7,235,273 141,979,219 667,095 (67,632,024) 180,000,001 Revenue from contracts with customers External customers 14,586,564 41,313,516 7,036,936 116,608,916 454,069 — 180,000,001 Intersegment sales 29,392,495 12,457,863 198,337 25,370,303 213,026 — 67,632,024 43,979,059 53,771,379 7,235,273 141,979,219 667,095 — 247,632,025 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 7,036,936 116,608,916 454,069 — 180,000,001 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 and recognized from performance obligations satisfied in previous periods: Revenue recognized that was included in contract liabilities at the beginning of the reporting period: — Sale of goods 1,277,125 — Others 32,947 1,310,072 (ii) Performance obligations Information about the Group’s performance obligations is summarised 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 are as follows: Within one year 1,579,322 More than one year 132,844 1,712,166 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 summarised 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, 2016 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 30,027,317 35,089,860 4,519,806 114,345,851 504,355 (39,632,607) 144,854,582 Inter-segment revenue (20,508,466) (4,981,936) (137,460) (13,906,423) (98,322) 39,632,607 — Sales of self-produced products (Note (i)) 18,292,949 Sales of products sourced from external suppliers 82,146,479 Revenue from external customers 9,518,851 30,107,924 4,382,346 100,439,428 406,033 — 144,854,582 Segment profit/(loss) before income tax 910,426 2,183,826 33,408 804,207 (1,993,161) (318,017) Income tax expense (403,899) Profit for the year 1,216,790 Other items Finance income 302,230 36,139 51,897 226,941 198,522 — 815,729 Finance costs (1,016,455) (1,226,821) (987,422) (329,454) (1,459,756) — (5,019,908) Share of profits and losses of joint ventures (41,367) — (28,312) — (25,829) — (95,508) Share of profits and losses of associates — 958 87,359 (810) 27,584 — 115,091 Amortization of land use rights (43,523) (27,464) (11,172) (15) (17,550) — (99,724) Depreciation and amortization (excluding the amortization of land use rights) (2,847,343) (2,612,308) (1,298,483) (54,724) (88,095) — (6,900,953) Gain on disposal of property, plant and equipment and land use rights 191,364 361,155 253,566 2,890 7,746 — 816,721 Impairment of property, plant and equipment (35,893) (18,239) (2,948) — — — (57,080) Changes in fair value gains and losses — 16,778 — 109,906 27,901 — 154,585 Realized loss on futures, forward and option contracts, net (1,297) (271,000) — (457,702) (560,268) — (1,290,267) Changes for impairment of inventories 684,271 505,595 159 471,218 1,145 — 1,662,388 Provision for impairment of receivables, net of bad debts recovered 53,144 (2,465) (836) (5,838) — — 44,005 Gain on disposal of associates — — — — 128,833 — 128,833 Dividends from available for sale financial assets — — 1,000 — 139,929 — 140,929 Additions during the period: Investment in joint ventures 2,631,546 — 1,559,966 — 2,048,688 — 6,240,200 Investment in associates 69,000 313,244 2,351,845 146,926 3,045,518 — 5,926,533 Intangible assets 336,603 3 6,857 509 127 — 344,099 Land use rights — 26 20,937 — — — 20,963 Investment properties 50,285 3,354 — 38,628 — — 92,267 Property, plant and equipment (Note (ii)) 2,455,066 4,203,385 1,582,039 42,476 143,736 — 8,426,702 Note: (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB12,795 million, sales of self-produced primary aluminum amounting RMB3,684 million, and sales of self-produced other products amounting to RMB1,814 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts (note 20) are not included. Year ended December 31, 2017 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 38,997,261 47,245,646 6,250,966 146,854,723 645,314 (58,973,482) 181,020,428 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 100,536,656 Revenue from external customers 14,565,322 36,551,968 5,733,697 123,695,608 473,833 — 181,020,428 Segment profit/(loss) before income tax 3,290,945 826,632 (171,310) 733,731 (1,728,563) 97,575 3,049,010 Income tax expense (643,734) Profit for the year 2,405,276 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) (467,090) (1,814,663) — (5,203,424) 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) (78,724) (86,200) — (6,972,550) Gain on disposal of property, plant and equipment and land use rights 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 gain/(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 Reversal of/(provision for) 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 a 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 aluminum amounting RMB6,680, and sales of self-produced other products amounting to RMB3,292 million. (ii) Change for impairment of inventories do not include change for impairment due to disposal of subsidiaries. (iii) Year ended December 31, 2018 Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 44,150,937 53,802,172 7,235,273 142,016,561 667,235 (67,632,024) 180,240,154 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)) 34,453,683 Sales of products sourced from external suppliers 82,192,575 Revenue from external customers 14,758,442 41,344,309 7,036,936 116,646,258 454,209 — 180,240,154 Segment profit/(loss) before income tax 3,496,381 (929,298) 26,020 779,451 (1,267,146) 198,103 2,303,511 Income tax expense (822,499) Profit for the year 1,481,012 Other items Finance income 100,125 54,458 15,744 136,513 185,392 — 492,232 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) (18,000) — — (107,537) Depreciation and amortization (excluding the amortization of land use rights) (2,846,051) (2,954,801) (1,962,081) (101,705) (82,962) — (7,947,600) Gain on disposal of property, plant and equipment and land use rights 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 Impairment of property, plant and equipment — — (7,450) — — — (7,450) 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) (84,807) (9,621) — (107,841) 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) Gain on previously held equity interest remeasured at 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. Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As at December 31, 2017 Segment assets 69,810,387 51,736,716 40,113,747 18,586,406 48,264,166 228,511,422 Reconciliation: Elimination of inter-segment receivables (30,170,567) Other eliminations (194,763) Corporate and other unallocated assets: Deferred tax assets 1,606,150 Prepaid income tax 64,557 Total assets 199,816,799 Segment liabilities 33,037,329 29,552,176 27,368,026 13,067,384 60,012,851 163,037,766 Reconciliation: Elimination of inter-segment payables (30,170,567) Corporate and other unallocated liabilities: Deferred tax liabilities 993,742 Income tax payable 213,262 Total liabilities 134,074,203 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 20,129,355 33,577,526 233,555,059 Reconciliation: Elimination of inter-segment receivables (34,228,334) Other eliminations (155,283) Corporate and other unallocated assets: Deferred tax assets 1,542,569 Prepaid income tax 162,103 Total assets 200,876,114 Segment liabilities 38,817,030 34,492,538 27,265,031 14,442,010 50,492,049 165,508,658 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 133,206,912 The Group mainly operates in Mainland China. Operating segment information by geographical location as follows: Segment revenue from external customers — Mainland China 142,018,789 171,954,097 171,023,595 — Outside Mainland China 2,835,793 9,066,331 9,216,559 144,854,582 181,020,428 180,240,154 Non-current assets (excluding financial assets and deferred tax assets) — Mainland China 126,992,893 137,857,441 — Outside Mainland China 384,089 646,327 127,376,982 138,503,768 For the year ended December 31, 2018, revenues of approximately RMB32,852 million (2016: RMB30,940 million, 2017: RMB39,759 million) were derived from entities directly or indirectly owned or controlled by the PRC government including Chinalco. These revenues are mainly attributable to the alumina, primary aluminum, energy and trading segments. There were no 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, 2016, 2017 and 2018. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Computer software, Mining Mineral production rights and exploration quota and Goodwill others rights others Total Year ended December 31, 2017 Opening net carrying amount 2,346,853 6,981,217 1,123,639 140,540 10,592,249 Additions — 280,340 — 4,827 285,167 Acquisition of a subsidiary — — — 188 188 Disposals — — — (11,168) (11,168) Disposal of subsidiaries — — — (562) (562) Amortization — (241,261) — (34,616) (275,877) Transfer from property, plant and equipment (note 6) — 53,565 — 22,614 76,179 Impairment losses — — — (8,134) (8,134) Currency translation differences (923) (7,433) (12,053) — (20,409) Closing net carrying amount 2,345,930 7,066,428 1,111,586 113,689 10,637,633 As at December 31, 2017 Cost 2,345,930 8,546,343 1,111,586 399,532 12,403,391 Accumulated amortization and impairment — (1,479,915) — (285,843) (1,765,758) Net carrying amount 2,345,930 7,066,428 1,111,586 113,689 10,637,633 Computer software, 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 For the year ended December 31, 2018, the amortization expenses of intangible assets recognized in profit or loss were analysed as follows: Cost of sales 211,915 241,261 265,108 General and administrative expenses 32,446 34,616 30,793 244,361 275,877 295,901 As at December 31, 2018, the Group has pledged intangible assets with a net carrying value amounting to RMB773 million (December 31, 2017: RMB1,112 million) for bank and other borrowings as set out in note 24 to the financial statements. As at December 31, 2018, the Group was in the process of applying for the certificates of mining rights with a carrying value amounting to RMB626 million (December 31, 2017: RMB1,680 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, 2018, the carrying value of these rights only represented approximately 0.31% of the total asset value of the Group (December 31, 2017: approximately 0.84%). 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, December 31, 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“) 14,985 — 15,739 — Shanxi Huaxing — — 1,163,949 — 204,404 2,141,526 1,369,107 2,141,526 The recoverable amount of a CGU is determined based on value-in-use calculations. These calculations 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% (2017: 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 the expected product price, demand for the products, product costs and related 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% (2017: 12.62%) that reflects specific risks related to CGUs and groups of CGUs as the discount rate. The assumptions above are used in analysing the recoverable amounts of CGUs and groups of CGUs within operating segments. The directors of the Company are of the view that, based on their assessment, there was no impairment of goodwill as at December 31, 2018 (December 31, 2017: no impairment). |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 Opening net carrying amount 27,918,175 45,522,495 656,467 100,202 16,174,232 90,371,571 Reclassifications and internal transfers 5,334,951 9,722,364 9,064 11,439 (15,077,818) — Transfer to intangible assets (note 5) — — — — (76,179) (76,179) Transfer to land use rights (note 8) — — — — (396,398) (396,398) Transfer to investment properties (note 7) (157,150) — — — — (157,150) Additions 8,941 1,068,129 36,667 47,804 9,602,162 10,763,703 Acquisition of subsidiaries 889,597 2,600,315 3,410 1,714 99,934 3,594,970 Disposal of subsidiaries (86,945) (62,814) (5,269) (2,114) (108,479) (265,621) Disposals (37,678) (1,140,096) (13,084) (1,123) (334,329) (1,526,310) Government grants (3,585) (105,979) — - — (109,564) Depreciation (1,577,363) (4,803,886) (145,287) (28,239) — (6,554,775) Impairment losses (564) (15,636) — — — (16,200) Currency translation differences (156) (196) (60) (58) — (470) Closing net carrying amount 32,288,223 52,784,696 541,908 129,625 9,883,125 95,627,577 As at December 31, 2017 Cost 48,990,555 101,005,277 2,873,825 561,597 9,995,123 163,426,377 Accumulated depreciation and impairment (16,702,332) (48,220,581) (2,331,917) (431,972) (111,998) (67,798,800) Net carrying amount 32,288,223 52,784,696 541,908 129,625 9,883,125 95,627,577 Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total Year ended December 31, 2018 Opening net carrying amount 32,288,223 52,784,696 541,908 129,625 9,883,125 95,627,577 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 land use rights (note 8) — — — — (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 8,025,615 10,335,155 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) — — (389) (7,450) Currency translation differences 99 146 34 27 — 306 Closing net carrying amount 38,849,351 53,695,930 509,595 158,232 12,980,261 106,193,369 As at December 31, 2018 Cost 56,620,994 103,608,492 2,538,835 603,593 13,092,648 176,464,562 Accumulated depreciation and impairment (17,771,643) (49,912,562) (2,029,240) (445,361) (112,387) (70,271,193) Net carrying amount 38,849,351 53,695,930 509,595 158,232 12,980,261 106,193,369 For the years ended December 31, 2016, 2017 and 2018, depreciation expenses recognized in profit or loss are analyzed as follows: Cost of sales 6,399,010 6,387,773 7,291,380 General and administrative expenses 181,708 160,076 201,337 Selling and distribution expenses 9,530 6,926 6,605 6,590,248 6,554,775 7,499,322 As at December 31, 2018, the Group was in the process of applying for the ownership certificates of buildings with a net carrying value of RMB5,639 million (December 31, 2017: RMB6,942 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, 2018, the carrying value of these buildings only represented approximately 2.81% of the Group’s total asset value (December 31, 2017: 3.47%). 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, 2018, interest expenses of RMB518 million (2016: RMB414 million, 2017: RMB344 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 4.54% to 7.00% (2016: 3.85% to 6.00%, 2017: 4.41% to 8.00%) (note 28), and were included in additions to property, plant and equipment. As at December 31, 2018, the Group has pledged property, plant and equipment at a net carrying value amounting to RMB4,168 million (December 31, 2017: RMB5,799 million) for bank and other borrowings as set out in note 24 to the financial statements. As at December 31, 2018, the carrying value of temporarily idle property, plant and equipment of the Group was RMB675 million (December 31, 2017: RMB2,530 million). The cost 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 (2017: RMB9,955 million) and RMB112 million (2017: RMB100 million), respectively. The accumulated depreciation of the Group’s fixed assets held under finance leases amounted to RMB2,011 million (2017: RMB1,908 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% (2017: 10.16%) that reflects specific risks related to the CGUs as discount rates. The assumptions above are used in analysing the recoverable amounts of the CGUs within operating segments. For the CGUs with indicators of impairment identified, the assets were not further impaired during the current year based on the impairment testing (2017: 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 RMB7 million were provided during the year ended December 31, 2018 (2016: RMB57 million, 2017: RMB16 million). |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENT PROPERTIES | |
INVESTMENT PROPERTIES | 7. INVESTMENT PROPERTIES Buildings Land use right Total Year ended December 31, 2017 Opening net carrying amount 99,655 1,156,120 1,255,775 Transfer from property, plant and equipment and land use rights (note 6) (note 8) 157,150 6,896 164,046 Disposal — (73,346) (73,346) Depreciation (2,744) (11,361) (14,105) Closing net carrying amount 254,061 1,078,309 1,332,370 As at December 31, 2017 Cost 263,066 1,107,411 1,370,477 Accumulated depreciation (9,005) (29,102) (38,107) Net carrying amount 254,061 1,078,309 1,332,370 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 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, 2018, the Group was in the process of applying for the ownership certificates of investment properties with a net carrying value of RMB68 million (December 31, 2017: RMB147 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, 2018, the carrying value of these investment properties only represented approximately 0.03% of the total asset value of the Group (December 31, 2017: 0.07%). 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, 2018, the fair value of the buildings was approximately RMB781 million (December 31, 2017: RMB1,208 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 RMB1,287 million (December 31, 2017: RMB1,182 million), which was determined based on the transaction prices for similar lands nearby. |
LAND USE RIGHTS AND LEASEHOLD L
LAND USE RIGHTS AND LEASEHOLD LAND | 12 Months Ended |
Dec. 31, 2018 | |
LAND USE RIGHTS AND LEASEHOLD LAND | |
LAND USE RIGHTS AND LEASEHOLD LAND | 8. LAND USE RIGHTS AND LEASEHOLD LAND Details of land use rights and leasehold land are as follows: December 31, December 31, Operating leases : In the mainland of the PRC, held on: Leases less than 10 years 127,516 768,153 Leases between 10 to 50 years 3,331,557 3,393,547 Leases over 50 years 117,939 118,591 3,577,012 4,280,291 Operating leases prepayments As at January 1 3,198,047 3,577,012 Additions 59,215 2,838 Acquisition of a subsidiary 31,833 460,638 Transfer from property, plant and equipment (note 6) 396,398 382,242 Disposals (6,712) — Government grants — (34,174) Disposal of subsidiaries (3,294) (728) Transfer to investment properties (6,896) — Amortization (91,579) (107,537) As at December 31 3,577,012 4,280,291 As at December 31, 2018, the Group was in the process of applying for the certificates of land use rights with a carrying amount of RMB687 million (December 31, 2017: RMB516 million). There have 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, 2018, the carrying value of these land parcels only represented approximately 0.34% of the total asset value of the Group (December 31, 2017: 0.26%). 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. For the year ended December 31, 2018, the amortization expenses of land use rights were recognized in "general and administrative expenses" in profit or loss amounting to RMB108 million (December 31, 2017: RMB92 million). As at December 31, 2018, the Group has pledged land use rights at a net carrying value amounting to RMB328 million (December 31, 2017: RMB177 million) for bank and other borrowings as set out in note 24 to the financial statements. |
INVESTMENTS IN JOINT VENTURES A
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | 9. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (a) Investments in joint ventures Movements in investments in joint ventures are as follows: As at January 1 6,240,200 6,007,624 Capital injections 201,864 90,000 A joint venture changed into a subsidiary (note 38 (k)) (315,706) (2,048,780) A subsidiary changed into a joint venture 11,980 — Share of profits and losses for the year 8,151 (199,452) Share of changes in reserves (6,105) (2,837) Cash dividends declared (132,760) (236,253) Impairment — (216,953) As at December 31 6,007,624 3,393,349 As at December 31, 2018, all joint ventures of the Group were unlisted. No joint venture was individually material to the Group. 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 8,151 (199,452) Share of the joint ventures’ total comprehensive income 8,151 (199,452) Aggregate carrying amount of the Group’s investments in joint ventures 6,007,624 3,393,349 As at December 31, 2018, there were no proportionate interests of the Group in the joint ventures’ capital commitments (December 31, 2017: Nil). 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 5,926,533 6,935,030 Capital injections 857,317 315,300 Deemed disposal of a subsidiary 100,092 — A subsidiary changed into an associate 240,258 — Associates changed into subsidiaries — (862,214) Disposal — (32,720) Share of profits and losses for the year (165,249) 39,335 Cash dividends declared (26,330) (36,157) Share of changes in reserves 2,409 4,888 As at December 31 6,935,030 6,363,462 As at December 31, 2018, all associates of the Group were unlisted. No associate was individually material to the Group. As at December 31, 2018, the Group has pledged investment in an associate amounting to RMB536 million (31 December 2017: nil) for bank and other borrowings as set out in note 24 to the financial statements. 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 (165,249) 39,335 Share of the associates’ total comprehensive income (165,249) 39,335 Aggregate carrying amount of the Group’s investments in the associates 6,935,030 6,363,462 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, 2018 | |
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 | 10. 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 Stated at fair value Listed equity investments — 6,441 Unlisted investments (Note) — 1,723,384 — 1,729,825 Available-for-sale investments Non current portion Stated at fair value Listed equity investments 9,701 — Unlisted investments (Note) 1,848,000 — 1,857,701 — Stated at cost Unlisted equity investments 73,211 — Less: provision for impairment (2,711) — 70,500 — 1,928,201 1,729,825 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: 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 Size Industry Investment Fund. 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 of December 31, 2017, the Company has made investment of RMB1,848 million to the fund. As at December 31, 2018, Size Industry Investment Fund made four investments in two of the Company’s associates and two of the Company’s joint ventures amounting to RMB5,600 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, 2018 | |
DEFERRED TAX | |
DEFERRED TAX | 11. DEFERRED TAX Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred taxes relate to the same tax authority. The movements in deferred tax assets and liabilities during the year ended December 31, 2018 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, 2017 553,716 207,651 636,197 169,113 120,830 1,687,507 (Charged)/credited to profit or loss (28,334) 59,664 (94,978) (3,070) 47,817 (18,901) Disposal of subsidiaries — (3,106) (1,320) — — (4,426) As at December 31, 2017 525,382 264,209 539,899 166,043 168,647 1,664,180 As at January 1, 2018 525,382 264,209 539,899 166,043 168,647 1,664,180 Acquisition of subsidiaries 360 — — — 7,734 8,094 (Charged)/credited to profit or loss (139,985) (21,839) 76,338 3,833 5,989 (75,664) As at December 31, 2018 385,757 242,370 616,237 169,876 182,370 1,596,610 Movements in deferred tax liabilities: Fair value Fair value adjustments arising Interest changes of Depreciation from acquisition of Investment Investment capitalisation financial assets and amortization subsidiaries in a subsidiary in an associate Total As at January 1, 2017 61,166 14,925 7,474 977,342 183,232 — 1,244,139 Exchange realignment — — — (1,830) — — (1,830) Credited to other comprehensive income — (11,180) — — — — (11,180) Acquisition of subsidiaries — — — 40,706 — — 40,706 (Credited)/charged to profit or loss (8,232) (1,414) 185 (27,370) (183,232) — (220,063) As at December 31, 2017 52,934 2,331 7,659 988,848 — — 1,051,772 Changes in accounting policies — 3,641 — — — — 3,641 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 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 1,606,150 1,542,569 Net deferred tax liabilities 993,742 1,812,805 As at December 31, 2018, the Group has not recognized deferred tax assets of RMB2,634 million (December 31, 2017: RMB4,337 million) in respect of accumulated tax losses amounting to RMB11,387 million (December 31, 2017: RMB18,214 million) arising in Mainland China and deferred tax assets of RMB1,660 million (December 31, 2017: RMB1,434 million) in respect of deductible temporary differences amounting to RMB7,992 million (December 31, 2017: RMB6,235 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, 2018, the expiry profile of these unprovided tax losses was analysed as follows: December 31, December 31, Expiring in 2018 7,689,663 — 2019 7,650,084 6,753,096 2020 711,878 711,878 2021 975,081 975,081 2022 1,186,914 1,211,002 2023 — 1,736,412 18,213,620 11,387,469 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 12. OTHER NON-CURRENT ASSETS December 31, December 31, Financial assets - Other long-term receivables 261,156 204,718 Prepayment for mining rights 801,657 808,736 Long-term prepaid expenses 484,536 667,772 Deferred losses for sale and leaseback transactions (Note) 1,234,376 1,164,782 Others 739,167 1,596,636 3,259,736 4,237,926 3,520,892 4,442,644 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, 2018 and December 31, 2017, all amounts were denominated in RMB. As at December 31, 2018 and December 31, 2017, all amounts in other non-current assets were non-interest-bearing. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
INVENTORIES | 13. INVENTORIES December 31, December 31, Raw materials 7,619,265 8,362,697 Work-in-progress 8,193,656 8,684,506 Finished goods 4,417,202 3,280,641 Spare parts 731,621 879,794 Packaging materials and others 43,064 63,227 21,004,808 21,270,865 Less: provision for impairment of inventories (457,252) (811,197) 20,547,556 20,459,668 Movements in the provision for impairment of inventories are as follows: As at January 1 719,560 457,252 Provision for impairment of inventories 194,588 2,413,098 Reversal arising from increase in net realisable value (89,318) (165,510) Written off upon sales of inventories (259,564) (1,893,643) Disposal of subsidiaries (108,014) — As at December 31 457,252 811,197 As at December 31, 2018 and December 31, 2017, the Group had not pledged inventories for bank and other borrowings. |
TRADE AND NOTES RECEIVABLES
TRADE AND NOTES RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND NOTES RECEIVABLES | |
TRADE AND NOTES RECEIVABLES | 14. TRADE AND NOTES RECEIVABLES December 31, December 31, Trade receivables 4,832,177 5,865,311 Less: provision for impairment (546,102) (659,261) 4,286,075 5,206,050 Notes receivable 3,722,862 2,894,482 8,008,937 8,100,532 As at December 31, 2018, except for trade and notes receivables of the Group amounting to RMB1,403 million (December 31, 2017: RMB1,094 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 RM820 million (December 31, 2017: RMB591 million) and RMB7 million (December 31, 2017: RMB97 million), respectively, which are repayable on credit terms similar to those offered to the major customers of the Group. As at December 31, 2018, the Group had pledged notes receivable amounting to RMB934 million to exchange notes receivable (December 31, 2017: trade receivables amounting to RMB22 million and notes receivable amounting to RMB82 million for bank and other borrowings and to exchange notes receivable) 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, 2018, the ageing analysis of trade and notes receivables was as follows: December 31, December 31, Within 1 year 6,289,931 6,212,537 Between 1 and 2 years 516,359 906,302 Between 2 and 3 years 338,334 158,162 Over 3 years 1,410,415 1,482,792 8,555,039 8,759,793 Less: provision for impairment (546,102) (659,261) 8,008,937 8,100,532 Impairment under IFRS 9 for the year ended December 31, 2018 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 1.69 Between 2 and 3 years 74 3 4.05 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 21.29 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 Individually assessed trade receivables 4,246,067 212,964 5,865,311 659,261 Impairment under IAS 39 for the year ended December 31, 2017 The ageing analysis of the trade receivables as at December 31, 2017 that were not individually nor collectively considered to be impaired under IAS 39 is as follows: December 31, Past due for 1 year 470,008 Past due for 1 to 2 years 298,008 Past due for over 2 years 781,832 1,549,848 Not past due 2,384,268 3,934,116 The credit quality of trade and notes receivables that are neither past due nor impaired was assessed by reference to the counterparties’ default history. As at December 31, 2017, trade and notes receivables of RMB898 million of the Group were impaired and provisions of RMB546 million were made. The individually impaired receivables mainly relate to customers which are in unexpected difficult economic situations and it was expected that only a portion of these receivables would be recovered. The ageing analysis of these trade receivables is as follows: December 31, Within 1 year 182,801 Between 1 and 2 years 46,351 Between 2 and 3 years 40,325 Over 3 years 628,584 898,061 Loss allowance for impairment (546,102) 351,959 Movements in the loss allowance for impairment of trade and notes receivables are as follows: As at January 1 507,593 546,102 Effect of adoption of IFRS 9 — 112,407 At beginning of year 507,593 658,509 Impairment loss 47,953 64,544 Written off (15,341) (33,469) Reversal (7,206) (20,466) Others 13,103 (9,857) As at December 31 546,102 659,261 As at December 31, 2018, the Group has derecognized notes receivable that have been discounted or endorsed but not yet due carrying amount in aggregate of RMB29,273 million (December 31, 2017: RMB24,474 million). In addition, as at December 31, 2018, the Group has not derecognized notes receivable that have been discounted or endorsed but not yet due with a carrying amount of RMB444 million (December 31, 2017: RMB227 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, 2018, 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, 2018 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | 15. OTHER CURRENT ASSETS December 31, December 31, Financial assets — Deposits paid to suppliers 756,748 317,946 — Dividends receivable 267,331 47,167 — Receivables from other revenue 575,650 693,039 — Entrusted loans and loans receivable from third parties 1,615,429 1,645,205 — Entrusted loans and loans receivable from related parties 2,459,883 1,297,892 — Receivables from disposal of Guizhou Branch's aluminum properties 1,320,488 1,881,513 — Interest receivables 144,473 40,936 — Recoverable reimbursement for freight charges 13,944 185,866 — Other financial assets 1,006,723 530,029 8,160,669 6,639,593 Less: provision for impairment (1,673,122) (1,764,068) 6,487,547 4,875,525 Receivable of governments grants — 58,455 Receivable of value-added tax refund 1,063 — Advances to employees 46,890 23,744 Deductible input value added tax receivables 2,411,495 2,187,202 Prepaid income tax 64,557 162,103 Prepayments to related parties for purchases 62,724 586,312 Prepayments to suppliers for purchases and others 890,958 963,870 Others 113,146 169,881 3,590,833 4,151,567 Less: provision for impairment (4,155) (4,139) 3,586,678 4,147,428 Total other current assets 10,074,225 9,022,953 As at December 31, 2018, except for an amount included in other receivables amounting to RMB48 million and RMB0.10 million, which were denominated in USD and HKD, respectively (December 31, 2017: other receivables amounting to RMB161 million denominated in USD), amounts in other current assets were denominated in RMB. As at December 31, 2018, except for entrusted loans and loans receivable (December 31, 2017: except for entrusted loans and loans receivable) which were interest-bearing assets, all amounts in other current assets were non-interest-bearing (December 31, 2017: all non-interest-bearing). As at December 31, 2018, the ageing analysis of financial assets included in other current assets was as follows: December 31, December 31, Within 1 year 2,582,172 1,114,811 Between 1 and 2 years 1,016,290 1,653,822 Between 2 and 3 years 1,689,050 449,003 Over 3 years 2,873,157 3,421,957 8,160,669 6,639,593 Less: provision for impairment (1,673,122) (1,764,068) 6,487,547 4,875,525 Movements in the provision for impairment of other current assets are as follows: As at January 1 1,672,316 1,677,277 Effect of adoption of IFRS 9 — 38,502 At beginning of year 1,672,316 1,715,779 Impairment loss 29,483 65,494 Write off (10,926) (6,117) Reversal (9,531) (1,731) Others (4,065) (5,218) As at December 31 1,677,277 1,768,207 Impairment under IFRS 9 for the year ended December 31, 2018 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. As at December 31, 2018 Gross carrying amount Expected credit 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 Impairment under IAS 39 for the year ended December 31, 2017 As at December 31, 2017, the ageing analysis of financial assets that are not impaired and included in other current assets was as follows: December 31, Past due for 1 year 1,214,515 Past due for 1 to 2 years 364,953 Past due for over 2 years 1,073,261 2,652,729 Not past due 3,695,813 6,348,542 The credit quality of other current assets that are neither past due nor impaired is assessed by reference to the counterparties’ default history. As at December 31, 2017, there was no history of default of these customers. The credit quality of other current assets that were not impaired is assessed by reference to the counterparties’ default history. Based on past experience, the directors of the Company are of the opinion that no provision for impairment is necessary in respect of these balances as there has not been a significant change in credit quality and the balances are still considered recoverable. Included in the Group’s financial assets that are past due but not impaired are amounts due from the Group’s related parties of RMB1,545 million on December 31, 2017. |
CASH AND CASH EQUIVALENTS AND R
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS | 16. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS December 31, December 31, Restricted cash 2,168,192 2,165,288 Cash and cash equivalents 27,835,866 19,130,652 30,004,058 21,295,940 Restricted cash mainly represented deposits held for use in issued notes payable and letters of credit. As at December 31, 2018, bank balances and cash on hand of the Group were denominated in the following currencies: December 31, December 31, RMB 26,949,057 18,026,082 USD 3,045,228 3,256,625 HKD 7,029 8,321 EUR 56 371 AUD 2,688 2,552 IDR — 1,989 30,004,058 21,295,940 Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances and restricted cash are deposited with creditworthy banks with no recent history of default. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
SHARE CAPITAL | |
SHARE CAPITAL | 17. SHARE CAPITAL As at December 31, 2017 and 2018, all issued shares were registered and fully paid. Both A shares and H shares rank pari passu with each other. The number of the Company’s authorised ordinary shares was 14,903,798,236 at par value of RMB1.00 per share as at December 31, 2017 and 2018. There were 14,903,798,236 ordinary shares issued and outstanding as at December 31, 2017 and 2018, respectively . |
RESERVES
RESERVES | 12 Months Ended |
Dec. 31, 2018 | |
RESERVES | |
RESERVES | 18. RESERVES The amounts of the Group’s reserves and the movements therein for the current and prior years are presented in the consolidated statement of changes in equity of the financial statements. (a) As disclosed in note 38(l) , note 38(m), note 38(n) and note 38(o), the acquisitions of the carbon business of Shandong Aluminum Co., Ltd. ("Shandong Aluminum") (山東鋁業有限公司), the carbon business of Pingguo Aluminum Co., Ltd. ("Pingguo Aluminum") (平果鋁業有限公司), a 77.65% equity interest of Red Cliff Carbon Co., Ltd. ("Red Cliff Carbon") (赤壁長城碳素有限公司) and a 51% equity interest of Harbin Bingdong Light Logistics Co., Ltd. ("East Light Logistics") (哈爾滨東輕龍華物流有限公司) were considered to be business combinations under common control, which resulted in the decrease of share premium amounting to RMB444 million in total. (b) 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, Zhongzhou Aluminum, Baotou Aluminum and Chalco Mining (collectively called the “Target Companies”), at a consideration of approximately 2.1 billion shares, 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. On February 25, 2019, the Company has completed the issuance of ordinary shares to these Transferors, and the total number of shares issued was 2,118,874,715. |
INTEREST BEARING LOANS AND BORR
INTEREST BEARING LOANS AND BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST BEARING LOANS AND BORROWINGS | |
INTEREST BEARING LOANS AND BORROWINGS | 19. INTEREST-BEARING LOANS AND BORROWINGS December 31, December 31, Long-term loans and borrowings Finance lease payables (note 20) 5,607,570 4,081,270 Bank and other loans (Note (a)) — Secured (Note (f)) 14,716,175 12,608,727 — Guaranteed (Note (e)) 3,191,277 3,040,400 — Unsecured 22,597,382 30,491,613 40,504,834 46,140,740 Medium-term notes and bonds and long-term bonds and private placement notes (Note (b)) — Unsecured 15,696,961 10,094,861 Total long-term loans and borrowings 61,809,365 60,316,871 Current portion of finance lease payables (note 20) (2,115,644) (2,328,358) Current portion of medium-term bonds and long-term bonds (12,492,378) (396,727) Current portion of long-term bank and other loans (6,911,640) (3,384,400) Non-current portion of long-term loans and borrowings 40,289,703 54,207,386 December 31, December 31, Short-term loans and borrowings Bank and other loans (Note (c)) — Secured (Note (f)) 1,362,000 1,220,680 — Guaranteed (Note (e)) 150,000 240,000 — Unsecured 29,529,442 37,835,512 31,041,442 39,296,192 Short-term bonds, unsecured (Note (d)) 3,601,573 500,000 Gold leasing arrangements (Note (g)) 6,818,393 1,607,905 Current portion of finance lease payables (note 20) 2,115,644 2,328,358 Current portion of medium-term notes 12,492,378 396,727 Current portion of long-term bank and other loans 6,911,640 3,384,400 Total short-term borrowings and current portion of long-term loans and borrowings 62,981,070 47,513,582 As at December 31, 2018, except for loans and borrowings of the Group amounting to RMB19 million (December 31, 2017: RMB21 million) and RMB3,984 million (December 31, 2017: RMB1,860 million), which were denominated in JPY and USD, respectively, all loans and borrowings were denominated in RMB. As at December 31, 2018, included in the Group's interest-bearing loans and borrowings are amounts due to subsidiaries of Chinalco of RMB4,373 million (December 31, 2017: RMB3,330 million are due to subsidiaries of Chinalco and RMB190 million are due to a joint venture), as set out in note 35(b). 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 6,905,000 3,382,325 6,640 2,075 6,911,640 3,384,400 Between 1 and 2 years 5,171,738 7,375,557 2,277 2,399 5,174,015 7,377,956 Between 2 and 5 years 8,666,967 16,586,390 6,827 7,197 8,673,794 16,593,587 Over 5 years 19,736,283 18,777,275 9,102 7,522 19,745,385 18,784,797 40,479,988 46,121,547 24,846 19,193 40,504,834 46,140,740 (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, 2018 was 4.78% (2017: 4.97%). (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, 2018 are summarised as follows: Effective December 31, December 31, Face value /maturity interest rate 2015 medium-term notes 3,000,000/2018 5.53 % 2,999,030 — 2015 medium-term notes 1,500,000/2018 5.01 % 1,496,503 — 2013 medium-term bonds 3,000,000/2018 5.99 % 2,999,211 — 2015 medium-term bonds 3,000,000/2018 6.11 % 2,999,359 — 2015 medium-term bonds 2,000,000/2018 6.08 % 1,998,275 — 2016 private placement notes 3,215,000/2019 5.12 % 3,204,583 396,727 2018 medium-term notes 2,000,000/2021 5.84 % — 1,986,418 2018 medium-term bonds 1,100,000/2021 4.66 % — 1,097,003 2018 medium-term bonds 900,000/2023 5.06 % — 897,820 2018 medium-term bonds 1,400,000/2021 4.30 % — 1,395,970 2018 medium-term bonds 1,600,000/2023 4.57 % — 1,595,311 2018 US dollar medium-term bonds 2,785,840/2021 5.25 % — 2,725,612 15,696,961 10,094,861 (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, 2018 was 4.52% (2017: 4.43%). (d) Short-term bonds Outstanding short-term bonds as at December 31, 2018 are summarized as follows: Effective December 31, December 31, Face value /maturity interest rate 2017 short-term bonds 3,000,000/2018 4.30 % 3,101,573 — 2017 short-term bonds 500,000/2018 4.90 % 500,000 — 2018 Ningxia short-term bonds 500,000/2019 5.30 % — 500,000 3,601,573 500,000 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 Lanzhou Aluminum Factory*(蘭州鋁廠) (Note (i)) 4,000 — Ningxia Energy (Note (ii)) 1,020,400 892,400 Yinxing Energy (Note (ii)) 91,000 70,000 Baotou Aluminum Limited Company*(包头铝业有限公司) and Baotou Communications Investment Group Limited Company*(包头交通投资集团有限公司) (Note (iii)) 1,600,000 1,600,000 The Company and Hangzhou Jinjiang (Note (iv)) 475,877 246,000 Qingzhen Industrial Investment Co., Ltd.*(“Qingzhen Investment”) (清鎮市工業投資有限公司) (Note (v)) — 116,000 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 3,191,277 3,040,400 Short-term loans Ningxia Energy (Note (ii)) 70,000 — Chalco Shandong (Note (ii)) 80,000 — China Great Wall Aluminum Co., Ltd.*(“China Great Wall Aluminum”) (中國長城鋁業有限公司) (Note(i)) — 40,000 Hangzhou Jinjiang, Qingzhen Investment and Guizhou Investment — 200,000 150,000 240,000 Note: (i) The guarantor is a subsidiary of Chinalco. (ii) The guarantor is a subsidiary of the Group. (iii) The guarantors are a subsidiary of the Company and a third party respectively. (iv) The guarantors are the Company and a third party respectively. (v) The guarantor is a third party * The English names represent the best effort by management of the Group in translating the Chinese names of the Companies as they do not have any official English names. (f) 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 2017 and 2018, the Company entered into several gold leasing master framework agreements, individual gold leasing agreements and general hedging agreements with Bank of Communications 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 4.10% to 4.50%), net of the Banks' charges. |
FINANCE LEASE PAYABLES
FINANCE LEASE PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
FINANCE LEASE PAYABLES | |
FINANCE LEASE PAYABLES | 20. FINANCE LEASE PAYABLES As disclosed in note 6, the Group leased certain machineries and construction in progress under finance leases with lease terms ranging from one to six years. At December 31, 2018, the total future minimum lease payments under finance leases and their present values are as follows: Minimum lease payments Present value of minimum lease payments December 31, December 31, December 31, December 31, Amounts payable: Within one year 2,371,917 2,518,653 2,115,644 2,328,358 In the second year 1,762,618 1,161,490 1,606,571 1,075,050 In the third to fifth years, inclusive 1,890,329 707,716 1,817,506 After five years 73,603 13,238 67,849 Total minimum finance lease payments 6,098,467 4,401,097 5,607,570 4,081,270 Future finance charges (490,897) (319,827) Total net finance lease payables (note 19) 5,607,570 4,081,270 Portion classified as current liabilities (note 19) (2,115,644) (2,328,358) Non-current portion 3,491,926 1,752,912 During the year ended December 31, 2018 and 2017, 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. During the year ended December 31, 2018, the Group entered into under the sales and leaseback arrangements and incurred losses of RMB254 million (2017: RMB102 million), which were amortized over their respective useful lives of the assets. The Group entered into sales and leaseback arrangements and incurred a gain of RMB115 million (2017: Nil). The internal rate of return (IRR) of the sales and finance leaseback arrangements range from 4.35% to 9.74% (2017: from 4.35% to 6.20%). * 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, 2018 | |
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 749,761 788,133 -Other financial liabilities 19,300 52,926 769,061 841,059 Obligations in relation to early retirement schemes (Note (i)) 900,924 777,305 Deferred government grants (Note (ii)) 373,447 314,045 Deferred gain relating to sales and leaseback agreements 176,774 240,661 Contract liabilities — 132,844 Provision for rehabilitation 113,672 121,033 Others 119,782 11,217 1,684,599 1,597,105 2,453,660 2,438,164 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 retired employees’ living expenses for no more than five years in the future on a monthly basis according to the early retirement benefit schemes, together with social insurance and housing fund pursuant to the regulation of the local Social Security Office. Living expenses, social insurance and the housing fund are together referred to as "the Payments". The Payments are discounted by the treasury bond rate of December 31, 2018. As at December 31, 2018, the current portion of the Payments within one year was reclassified to “Other payables and accrued liabilities”. As at December 31, 2018, obligations in relation to retirement benefits under the Group’s early retirement schemes are as follows: As at January 1, 996,598 1,438,440 Provision made during the year (note 29) 767,632 447,660 Interest costs 17,618 62,801 Payment during the year (343,408) (655,060) As at December 31, 1,438,440 1,293,841 Non-current 900,924 777,305 Current (note 22) 537,516 516,536 1,438,440 1,293,841 (ii) |
OTHER PAYABLES AND ACCRUED LIAB
OTHER PAYABLES AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
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 6,283,484 5,694,632 -Accrued interest 827,367 396,286 -Payables withheld as guarantees and deposits 1,494,367 1,101,456 -Dividends payable by subsidiaries to non-controlling shareholders 223,942 543,207 -Consideration payable for investment projects 170,494 280,856 -Current portion of payables for mining rights 300,970 210,325 -Others 2,062,612 1,025,163 11,363,236 9,251,925 Sales and other deposits from customers (note 2.2(c)) 1,605,374 — Taxes other than income taxes payable (Note) 818,979 831,040 Accrued payroll and bonus 76,683 220,851 Staff welfare payables 262,077 391,824 Current portion of obligations in relation to early retirement schemes (note 21) 537,516 516,536 Contribution payable for pension insurance 27,248 30,145 Output value-added tax on pending — 252,691 Others 1,786 37,492 3,329,663 2,280,579 14,692,899 11,532,504 Note: 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, 2018, except for other payables and accrued liabilities of the Group amounting to RMB240 million and RMB0.27 million, which were denominated in USD and HKD, respectively (December 31, 2017: RMB331 million and RMB0.32 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, 2018 | |
TRADE AND NOTES PAYABLES | |
TRADE AND NOTES PAYABLES | 23. TRADE AND NOTES PAYABLES December 31, December 31, Trade payables 7,767,482 8,568,438 Notes payable 4,592,959 5,439,162 12,360,441 14,007,600 As at December 31, 2018, except for trade and notes payables of the Group amounting to RMB213 million (December 31, 2017: RMB56 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 11,748,228 13,598,040 Between 1 and 2 years 199,889 140,517 Between 2 and 3 years 200,191 47,111 Over 3 years 212,133 221,932 12,360,441 14,007,600 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, 2018 | |
PLEDGE OF ASSETS | |
PLEDGE OF ASSETS | 24. PLEDGE OF ASSETS The Group has pledged various assets as collateral against certain secured borrowings as set out in note 19. As at December 31, 2018, a summary of these pledged assets was as follows: December 31, December 31, Property, plant and equipment (note 6) 5,799,013 4,168,239 Land use rights (note 8) 176,914 328,116 Intangible assets (note 5) 1,111,705 772,597 Notes receivable (note 14) 82,125 933,551 Trade receivables (note 14) 22,000 — Investments in associates — 535,610 7,191,757 6,738,113 As at December 31, 2018, 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 RMB1,354 million and the non-current portion of long-term loans and borrowings amounting to RMB10,155 million were secured by the contractual right to charge users for electricity generated in the future (December 31, 2017: the current portion of long-term loans and borrowings amounting to RMB1,007 million and the non-current portion of long-term loans and borrowings amounting to RMB12,582 million were secured by the contractual right to charge users for electricity generated in the future and 70.82% equity interests in a subsidiary of the Company, Ningxia Energy). |
PROFIT BEFORE INCOME TAX
PROFIT BEFORE INCOME TAX | 12 Months Ended |
Dec. 31, 2018 | |
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 79,682,085 98,282,714 85,443,397 Raw materials and consumables used, and changes in work-in-progress and finished goods 27,209,597 34,550,042 43,197,855 Power and utilities 12,980,854 17,274,948 17,650,214 Depreciation and amortization 7,000,677 7,064,129 8,055,137 Employee benefit expenses (note 29) 5,899,257 6,975,281 7,433,027 Repairs and maintenance 1,354,394 1,716,940 1,750,194 Transportation expenses 1,532,920 1,768,604 1,893,659 Logistic cost 796,231 1,894,061 2,794,733 Taxes other than income tax expense (Note (i)) 690,718 858,344 936,546 Rental expenses for land use rights and buildings 511,189 497,356 649,640 Packaging expenses 236,465 267,547 261,626 Research and development expenses 168,862 498,234 626,873 Auditors’ remuneration expense (Note (ii)) 26,006 31,815 30,847 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, 2018, 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 RMB26.7 million (2016:RMB23.7 million, 2017: RMB23.1 million), and services provided by other auditors. |
OTHER INCOME
OTHER INCOME | 12 Months Ended |
Dec. 31, 2018 | |
OTHER INCOME | |
OTHER INCOME | 26. OTHER INCOME For the year ended December 31, 2018, government grants amounting to RMB135 million (2016: RMB156 million, 2017: RMB90 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, 2018 | |
OTHER GAINS, NET | |
OTHER GAINS, NET | 27. OTHER GAINS, NET Gain on deemed disposal and disposal of subsidiaries — 325,022 3,517 Gain on disposal and dividends of available for sales investments/equity investments designated at fair value through other comprehensive income 140,929 79,408 109,914 Realized gains/(losses) on futures, forward and option contracts, net (Note) (1,290,267) (23,951) 40,492 Unrealized gains/(losses) on futures, forward and option contracts, net (Note) 154,585 (131,073) 100,967 Gain on disposal of property, plant and equipment and land use rights, net 816,721 76,739 101,098 Gain on previously held equity interests remeasured at acquisition-date fair value (note 38(h), 38 (i), 38 (j) and 38 (k)) — 117,640 748,086 Loss on disposal of investments in an associate 128,833 — (1,904) Others 218,342 (124,403) (180,266) 169,143 319,382 921,904 Note: None of these futures, forward and option contracts was designated for hedge accounting . |
FINANCE INCOME_FINANCE COSTS
FINANCE INCOME/FINANCE COSTS | 12 Months Ended |
Dec. 31, 2018 | |
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 (815,729) (706,690) (492,232) Interest expense 5,169,568 5,175,156 5,202,639 Less: interest expense capitalized in property, plant and equipment (note 6) (414,133) (344,452) (517,589) Interest expense, net of capitalized interest 4,755,435 4,830,704 4,685,050 Amortization of unrecognized finance expenses 324,701 241,099 205,335 Exchange (gain)/loss, net (60,228) 131,621 (7,889) Finance costs 5,019,908 5,203,424 4,882,496 Capitalization rate during the year (note 6) 3.85% to 6.00% 4.41% to 8.00% 4.54% to 7.00% |
EMPLOYEE BENEFIT EXPENSES
EMPLOYEE BENEFIT EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
EMPLOYEE BENEFIT EXPENSES | |
EMPLOYEE BENEFIT EXPENSES | 29. EMPLOYEE BENEFIT EXPENSES An analysis of employee benefit expenses is as follows: Salaries and bonus 3,854,571 4,205,361 4,636,972 Housing fund 388,017 395,489 414,440 Staff welfare and other expenses (Note) 1,495,618 1,576,552 1,896,365 Employment expense in relation to early retirement schemes (note 21) 132,044 767,632 447,660 Employment expenses in relation to termination benefit 29,007 30,247 37,590 5,899,257 6,975,281 7,433,027 Note: 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, 2018 | |
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 762 768 756 Basic salaries, housing fund, other allowances and benefits in kind 975 1,370 1,849 Pension cost 114 166 234 1,851 2,304 2,839 The remuneration of each director and supervisor of the Company for the year ended December 31, 2016 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Ge Honglin — — — — — Ao Hong — — — — — Lu Dongliang — — — — — Jiang Yinggang — 725 — 76 801 — 725 — 76 801 Non-executive Directors: Yu Dehui — — — — — Liu Caiming — — — — — Wang Jun 150 — — — 150 Lie-A-Cheong Tai-Chong, David 204 — — — 204 Chen Lijie 204 — — — 204 Hu Shihai 204 — — — 204 762 — — — 762 Supervisors: Liu Xiangmin — — — — — Yuan Li — — — — — Wang Jun — — — — — Wu Zuoming 250 — 38 288 Zhao Zhao — — — — — 250 — 38 288 Total 762 975 — 114 1,851 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 (iii)) — — — — — Jiang Yinggang — 762 — 90 852 Zhu Runzhou — 438 — 54 492 — 1,200 — 144 1,344 Non-executive Directors: Ao Hong (Note ii)) — — — — — Wang Jun (Note (ii)) 150 — — — 150 Chen Lijie 202 — — — 202 Lie-A-Cheong Tai-Chong, David 202 — — — 202 Hu Shihai 202 — — — 202 756 — — — 756 Supervisors: Ye Guohua — — — — — Wang Jun — — — — — Wu Zuoming — 649 — 90 739 — 649 — 90 739 Total 756 1,849 — 234 2,839 Note: (i) . (ii) The remuneration of the directors and supervisors of the Company fell within the following band: Number of individuals Nil to RMB1,000,000 15 15 12 During the year, no options were granted to the directors or the supervisors of the Company (2016: Nil, 2017: 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 (2016: Nil, 2017: Nil). No directors or supervisors of the Company waived any remuneration during the years 2018 and 2017. (b) Five highest paid individuals During the year ended December 31, 2018, the five highest paid employees of the Group include two directors and one supervisor (2016: two directors and one supervisor, 2017: one director and one supervisor) whose remuneration is reflected in the analysis presented above. The remuneration payable to the remaining three individuals during 2018 (2016: two, 2017: three) is as follows: Basic salaries, housing fund, other allowances and benefits in kind 1,450 2,460 1,305 Discretionary bonuses — — — Pension costs 152 249 165 1,602 2,709 1,470 The number of the remaining three highest paid individuals during 2018 (2016: two, 2017: three) whose remuneration fell within the following band is as follows: Number of employees Nil to RMB1,000,000 2 3 2 |
INCOME TAX BENEFIT_(EXPENSE)
INCOME TAX BENEFIT/(EXPENSE) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAX BENEFIT/(EXPENSE) | |
INCOME TAX BENEFIT/(EXPENSE) | 31. INCOME TAX BENEFIT/ (EXPENSE) Current income tax expense: — PRC corporate income tax 503,233 844,896 755,215 Deferred tax (benefit)/expense (99,334) (201,162) 67,284 403,899 643,734 822,499 In general, the Group’s PRC entities are subject to PRC corporate income tax at the standard rate of 25% (2016: 25%, 2017:25%) 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% (2016: 15%, 2017: 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 1,620,689 3,049,010 2,303,511 Tax expense calculated at the statutory tax rate of 25% (2016 and 2017: 25%) 405,172 762,253 575,878 Tax effects of: Preferential income tax rates applicable to certain branches and subsidiaries (3,322) (287,081) (268,665) Impact of change in income tax rate 5,945 98,150 23,425 Tax losses with no deferred tax assets recognized 269,173 296,728 434,103 Deductible temporary differences with no deferred tax assets recognized 78,644 308,657 382,503 Utilisation of previously unrecognized tax losses and deductible temporary differences (203,423) (212,240) (52,962) Tax incentive in relation to deduction of certain expenses (3,769) (43,846) (62,172) Non-taxable income (89,602) (126,101) (254,337) Expenses not deductible for tax purposes 83,966 10,290 46,758 Write-off of unrecoverable deferred tax assets previously recognized 3,315 49,808 183,195 Return on equity investment measured by the equity method (4,896) 39,274 40,029 Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized (117,513) (274,726) (233,940) True-up adjustments in respect of prior year’s annual income tax filings and others (19,791) 22,568 8,684 Income tax expense 403,899 643,734 822,499 Effective tax rate 25 % 21 % 36 % Share of income tax expense of associates and joint ventures of RMB106 million (2016: RMB64 million, 2017: RMB86 million) and RMB48 million (2016: RMB22 million, 2017: RMB 11 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, 2018 | |
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 (a) Basic The basic earnings per share amount is calculated by dividing the earnings attributable to ordinary equity holders of the parent by the weighted average number of shares in issue during the year. For the purpose of calculating basic earnings per share, the Group adjusted (i) the profit attributable to owners of the parent for the after-tax amounts of cumulative distribution reserved for the period of other equity instruments, which were issued by the Group and classified as equity instruments, and (ii) the weighted average effect of the shares to be issued as a consideration to acquire the non-controlling interests as disclosed in note 18(b). Profit attributable to ordinary equity holders of the parent (RMB) 365,697,352 1,413,028,383 746,477,441 Other equity instruments’ distribution reserved (RMB) (110,000,000) (110,000,000) (129,282,192) 255,697,352 1,303,028,383 617,195,249 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 (Note 18(b)) — — 1,938,915,502 14,903,798,236 14,903,798,236 16,842,713,738 Basic earnings per share (RMB) 0.017 0.087 0.037 (b) Diluted The diluted earnings per share amounts for the years ended December 31, 2016, 2017 and 2018 are the same as the basic earnings per share amounts as there were no dilutive potential shares during those years. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2018 | |
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 28 March 2019, the directors did not propose any final dividend for the year ended December 31, 2018, 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, 2018 | |
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) Notes Cash flows generated from operating activities Profit before income tax 1,620,689 3,049,010 2,303,511 Adjustments for: Share of profits and losses of joint ventures 9(a) 95,508 (8,151) 199,452 Share of profits and losses of associates 9(b) (115,091) 165,249 (39,335) Depreciation of property, plant and equipment 6 6,590,248 6,554,775 7,499,322 Depreciation of investment properties 7 1,426 14,105 22,229 Gain on disposal of other property, plant and equipment and land use rights, net 27 (245,451) (76,739) (101,098) Gain on disposal of Environmental Protection Assets (571,270) — — Impairment losses on property, plant and equipment 6 57,080 16,200 7,450 Impairment losses of intangible assets 5 — 8,134 — Amortization of intangible assets 5 244,361 275,877 295,629 Amortization of land use rights 8 99,724 91,579 107,809 Amortization of prepaid expenses included in other non-current assets 64,918 127,793 130,148 Realized and unrealized losses/(gains) on futures, option and forward contracts 27 1,135,682 155,024 (141,459) 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) Loss on disposal of investments in associates 27 (128,833) — 1,904 Gain on disposal of and dividends from equity investments 27 (140,929) (79,408) (109,914) Receipt of government subsidies (207,146) (202,359) (158,109) Interest income (353,619) (183,015) — Finance costs 28 5,019,908 5,203,422 4,882,496 Change in special reserve 9,839 58,743 6,605 Others 55 (16,950) 75,380 13,177,099 14,710,627 14,230,417 Changes in working capital: Decrease/(increase) in inventories 2,398,030 (2,662,507) 1,194,454 Increase in trade and notes receivables (3,655,735) (1,961,968) (2,486,201) Decrease in other current assets 3,463,799 1,275,535 916,681 (Increase)/decrease in restricted cash (264,508) (137,745) 530,284 (Increase)/decrease in other non-current assets (132,203) (422,845) 425,768 (Decrease)/increase in trade and notes payables (3,405,737) 1,599,294 (5,660) Increase/(decrease) in other payables and accrued liabilities 73,357 1,672,658 (945,270) Increase in other non-current liabilities 11,105 81,878 105,386 Cash generated from operations 11,665,207 14,154,927 13,965,859 PRC corporate income taxes paid (55,898) (949,355) (947,683) Net cash generated from operating activities 11,609,309 13,205,572 13,018,176 Non-cash transactions of investing activities and financing activities Capital injection to an associate and joint ventures by non-cash assets 371,051 186,450 — Equity exchange arrangement (note 18(b)) — — 10,735,214 Endorsement of notes receivables accepted from the sale of goods or services for purchase of property, plant and equipment 1,568,488 2,384,046 Acquisition of businesses at non-cash consideration — 50,058 70,087 Finance lease — 44,342 113,305 (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 Financial liabilities Liabilities Financial included in other included in liabilities at fair current payables other non- Interest bearing value through Trade and and accrued current loans and profit or loss notes payables expenses liabilities borrowings Total As at January 1, 2017 3,575 11,532,163 9,793,534 789,720 105,968,641 128,087,633 Net cash generated from operating activities — 1,361,087 1,253,220 — — 2,614,307 Net cash flows from/(used in) investing activities 85,851 (530,457) 640,157 (73,701) 2,400,464 2,522,314 Payment of upfront interest of gold leasing arrangement — — — — 7,804,083 7,804,083 Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — — — — 3,478,550 3,478,550 Repayments of medium-term notes and short-term bonds — — — — (16,300,000) (16,300,000) Repayments of gold leasing arrangement — — — — (4,000,000) (4,000,000) Drawdown of short-term and long-term bank and other loans — — — — 83,758,749 83,758,749 Repayments of short-term and long-term bank and other loans — — — — (78,866,459) (78,866,459) Proceeds from finance lease, net of deposit and transaction costs — — — — 1,000,036 1,000,036 Capital elements of finance lease rental payment — — — — (2,462,250) (2,462,250) Dividends paid by subsidiaries to non-controlling shareholders — — 2,446 — — 2,446 Amortization of unrecognized finance expenses and interest expense — — — 16,352 398,371 414,723 Interest paid — — (278,084) — — (278,084) Reclassification — — (36,690) 36,690 — — Net cash (used in)/ generated from financing activities — — (312,328) 53,042 (5,188,920) (5,448,206) Net foreign exchange differences — (2,352) (11,347) — 90,588 76,889 As at December 31, 2017 89,426 12,360,441 11,363,236 769,061 103,270,773 127,852,937 Financial Financial liabilities liabilities Financial included in other included in liabilities at fair current payables other non- Interest bearing value through Trade and 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 — (5,660) (669,353) — — (675,013) Net cash flows from/(used in) investing activities (87,660) 1,646,299 (193,345) — 7,197,213 8,562,507 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) — (69,546,537) (70,546,537) 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 — — (449,835) (24,736) (85,579) (560,150) Reclassification — — (90,644) 90,644 — — Net cash (used in)/ generated from financing activities — — (1,262,708) 71,998 (8,747,935) (9,938,645) Net foreign exchange differences — 6,520 14,095 — 917 21,532 As at December 31, 2018 1,766 14,007,600 9,251,925 841,059 101,720,968 125,823,318 |
SIGNIFICANT RELATED PARTY BALAN
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
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) 10,319,958 10,658,507 11,248,625 Associates of Chinalco 688,308 682,992 897,642 Joint ventures 648,145 2,031,159 4,462,670 Associates 605,449 724,658 2,626,780 12,261,860 14,097,316 19,235,717 Provision of engineering, construction and supervisory services to: (iii) Chinalco and its subsidiaries (ix) 101,323 77,095 5,981 Joint ventures 41,423 2,046 — Associates — — 1,725 142,746 79,141 7,706 Provision of utility services to: (ii) Chinalco and its subsidiaries (ix) 567,628 581,566 620,552 Associates of Chinalco 4,444 8,776 15,719 Joint ventures 3,031 118,280 186,672 Associates 584 1,122 24,309 575,687 709,744 847,252 Rental revenue of land use rights and buildings from: (vi) Chinalco and its subsidiaries (ix) 33,231 40,875 31,551 Joint ventures — 426 1,545 Associates — 1,511 33,231 41,301 34,607 Purchases of goods and services: Purchases of engineering, construction and supervisory services from: (iii) Chinalco and its subsidiaries (ix) 1,529,453 1,071,283 2,088,338 Joint ventures — — 2,100 Associates — 134,072 405,993 1,529,453 1,205,355 2,496,431 Purchases of key and auxiliary materials, equipment and finished goods from: (iv) Chinalco and its subsidiaries (ix) 1,660,529 3,850,073 3,513,420 Associates of Chinalco — 18,917 Joint ventures 3,799,116 6,516,087 8,182,251 Associates 31,413 1,175 2,108,072 5,491,058 10,367,335 13,822,660 Provision of social services and logistics services by: (v) Chinalco and its subsidiaries (ix) 307,354 326,830 312,062 Provision of utility services by: (ii) Chinalco and its subsidiaries (ix) 686,474 1,412,722 992,827 Associates of Chinalco — — 96,510 Joint ventures 3,386 19,537 26,269 Associates — — 77,432 689,860 1,432,259 1,193,038 Notes Purchases of goods and services: (continued) Provision of other services by: A joint venture 151,552 269,204 226,280 Rental expenses for buildings and land use rights charged by: (vi) Chinalco and its subsidiaries (ix) 511,001 509,848 501,866 Joint ventures 126 — — 511,127 509,848 501,866 Other significant related party transactions: Borrowing from a subsidiary of Chinalco (viii), (ix) 5,145,959 4,010,000 6,525,000 Interest expense on borrowings, discounted notes and factoring arrangement from subsidiaries of Chinalco 226,118 225,934 143,415 Entrusted loans and other borrowings to: Joint ventures 212,400 500,000 — Associates — 1,100,000 — 212,400 1,600,000 — Interest income on entrusted loans and other borrowings: Joint ventures 31,373 41,005 — An associate — 24,425 — 31,373 65,430 — Interest income from the unpaid disposal proceeds from: Chinalco and its subsidiaries 246,149 117,587 — Disposal of assets under a sale and leaseback contract to a subsidiary of Chinalco (xi) 1,040,000 600,000 224,000 Finance lease under a sale and leaseback contract from a subsidiary of Chinalco (xi), (ix) 1,040,036 600,036 224,000 Trade receivable factoring arrangement from a subsidiary of Chinalco (ix) — 1,570,000 470,101 Discounted notes receivable to a subsidiary of Chinalco (viii) 40,200 523,253 756,000 Provision of financial guarantees to: A joint venture (x) 24,245 18,350 12,450 Financial guarantees provided by: Subsidiaries of Chinalco 23,000 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 summarised below: 1. 2. 3. 4. (ii) Utility services, including electricity, gas, heat and water, are provided at the state-prescribed price. (iii) Engineering, project construction and supervisory services were provided for construction projects. The state-guidance price or prevailing market price (including the tender price where by way of tender) is adopted for pricing purposes. (iv) The pricing policy for purchases of 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) The pricing policy for product processing services is the same as that set out in (i) above. (viii) Chinalco Finance Company Limited (“Chinalco Finance”)* ( 中鋁財務有限責任公司 ), a wholly-owned subsidiary of Chinalco and a non-bank financial institution established in the PRC, provides deposit services, credit services and miscellaneous financial services to the Group. The terms for the provision of financial services to the Group are no less favourable than those of the same type of financial services provided by Chinalco Finance to Chinalco and other members of its group or those of the same type of financial services that may be provided to the Group by other financial institutions. (ix) These related party transactions also constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Listing Rules. (x) 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, 2018, the outstanding amount of the guarantee was RMB12 million. (xi) As disclosed in note 20, the Group has entered into several sales and leaseback contracts with CFL. (xii) As disclosed in note 38 (n) and 38 (o), the Group acquired 57.69% and 19.96% equity interest in Chibi Great Wall Carbon from China Great Wall Aluminum and Henan Great Wall Zhongxin Industrial Co., Ltd. (“Henan Great Wall Zhongxin”) ( 河南長城眾鑫實業股份有限公司 ) respectively; and acquired 51% equity interest in East Light Logistics from Northeast Light Alloy Co., Ltd. (“Northeast Light Alloy”) ( 東北輕合金有限公司 ); which constituted related party transactions. (xiii) As disclosed in note 38(l) and 38 (m), the Group acquired Shandong Aluminum Plant ( 山東鋁廠碳素廠 ) and Pingguo Aluminum Plant ( 平果鋁業碳素廠 ) from Pingguo Aluminum and Shandong Aluminum, which also constituted related party transactions. * The English name represent the best effort made by management of the Group in translating the Chinese name of the company as it does not have any official English name. (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, 2017 December 31, 2018 Cash and cash equivalents deposited with A subsidiary of Chinalco (Note) 7,679,806 9,101,541 Trade and notes receivables Chinalco and its subsidiaries 1,483,984 1,278,715 Associates of Chinalco 2,000 18,655 Joint ventures 591,488 819,878 Associates 96,574 6,615 2,174,046 2,123,863 Provision for impairment of receivables (78,388) (77,657) 2,095,658 2,046,206 Note: 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 623,254 830,615 Joint ventures 1,737,644 1,424,678 Associates 1,132,138 29,701 3,493,036 2,284,994 Provision for impairment of other current assets (48,166) (40,830) 3,444,870 2,244,164 Other non-current assets A joint venture 97,103 — Associates 111,845 111,845 208,948 111,845 Borrowings and finance lease payables Subsidiaries of Chinalco 3,329,807 4,373,033 A joint venture 190,000 — 3,519,807 4,373,033 Trade and notes payables Chinalco and its subsidiaries 332,701 404,278 Joint ventures 413,533 631,570 Associates 7,222 13,033 Associates of Chinalco — 4,012 753,456 1,052,893 December 31, December 31, Other payables and accrued liabilities Chinalco and its subsidiaries 2,652,249 1,887,010 Associates of Chinalco 5,030 17,128 Associates 218,560 148,978 Joint ventures 101,828 8,860 2,977,667 2,061,976 December 31, December 31, Contract Liabilities Chinalco and its subsidiaries — 22,307 Associates of Chinalco — 20 Associates — 12,451 Joint ventures — 94,367 — 129,145 As at December 31, 2018, included in long-term loans and borrowings and short-term loans and borrowings were from other state-owned enterprises amounting to RMB42,553 million (December 31, 2017: RMB33,575 million) and RMB41,189 million (December 31, 2017: RMB42,648 million). 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 762 768 756 Basic salaries, housing fund, other allowances and benefits in kind 2,542 3,830 3,953 Pension costs 277 415 482 3,581 5,013 5,191 Details of directors’ remuneration are included in note 30 to the financial statements. (d) Commitments with related parties As at December 31, 2018 and 2017, 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, 2018 | |
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 14, 15, 16, 19, 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, 2018, the Group only had significant exposure to USD. As at December 31, 2018, if RMB had weakened /strengthened by 5% against USD with all other variables held constant, the total comprehensive income for the year would have been approximately RMB10 million higher/lower (2017: RMB21 million lower/higher), mainly as a result of foreign exchange gains and losses arising from the translation of USD-denominated borrowings, cash and receivables. Profit was more sensitive to the fluctuation in the RMB/USD exchange rates in 2018 than in 2017, mainly due to the increase in the USD denominated cash and receivables. 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, 2018 and 2017. (ii) Interest rate risk As at December 31, 2018, as the Group had no significant interest-bearing assets except for bank deposits (note 16) and entrusted loans (note 15), 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, 2018 and 2017. 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, 2018, if interest rates had been 100 basis points (December 31, 2017: 100 basis points) higher/lower for bank and other loans borrowed at floating interest rates with all other variables held constant,the total comprehensive income for the year would have been RMB641 million lower/higher (2017: RMB537 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 is not exposed to any significant fair value interest rate risk for its fixed interest rate borrowings held as at December 31, 2018 and 2017. (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, 2018, the fair values of the outstanding futures contracts amounting to RMB16 million (December 31, 2017: RMB10 million) and RMB2 million (December 31, 2017: RMB89 million) were recognized in financial assets and financial liabilities at fair value through profit or loss, respectively. As at December 31, 2018, the Company did not hold any option contracts (December 31, 2017: the Company did not hold any option contracts). As at December 31, 2018, if the commodity futures prices had increased/decreased by 3% (December 31, 2017 : 3%) and all other variables were held constant, the profit for the year would have changed by the amounts shown below: Primary aluminum Decrease/increase Decrease/increase Copper Increase/decrease Increase/decrease Zinc Decrease/increase Decrease/increase Coal Decrease/increase RMB0.2 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 2018. Maximum exposure and year-end staging as at December 31, 2018 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. The amounts presented are gross carrying amounts for financial assets and the exposure to credit risk for the financial guarantee contracts. 12-month ECLs Lifetime ECLs Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables* — — — 5,206,050 5,206,050 Financial assets in other current assets* 1,098,455 3,655,638 121,432 — 4,875,525 Notes receivable 2,894,482 — — — 2,894,482 Restricted cash 2,165,288 — — — 2,165,288 Cash and cash equivalents 19,130,652 — — — 19,130,652 Financial assets in other non-current assets 204,718 — — — 204,718 Financial guarantees -not yet past due 12,450 — — — 12,450 25,506,045 3,655,638 121,432 5,206,050 34,489,165 * For trade receivables to which the Group applies the simplified approach for impairment, information based on the provision matrix is disclosed in notes 14 to the consolidated financial statements. Maximum exposure as at December 31, 2017 The carrying amounts of short-term investments and these receivables included in notes 10, 12, 14, and 15 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, 2018, revenues of approximately RMB32,852 million (2016: RMB30,940 million, 2017: RMB39,759 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, 2016, 2017 and 2018. 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, 2016, 2017 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 that 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 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, 2018, the Group had total banking facilities of approximately RMB183,129 million of which the amounts totalling RMB61,611 million have been utilized as at December 31, 2018. Banking facilities of approximately RMB92,582 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, 2018, the Group had credit facilities through its futures agent at the LME amounting to USD12 million (equivalent to RMB82 million) (December 31, 2017: USD20 million (equivalent to RMB131 million)), of which USD1 million (equivalent to RMB7 million) (December 31, 2017: USD2 million (equivalent to RMB13 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 analyses 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, 2017 Finance lease payables, including current portion 2,371,917 1,762,618 1,890,329 73,603 6,098,467 Long-term bank and other loans, including current portion 6,911,640 5,174,015 8,673,794 19,745,385 40,504,834 Medium-term notes and bonds, including current portion 12,500,000 3,215,000 — — 15,715,000 Short-term bonds 3,500,000 — — — 3,500,000 Gold leasing arrangement 6,818,393 — — — 6,818,393 Short-term bank and other loans 31,041,442 — — — 31,041,442 Interest payables for borrowings 5,502,360 2,123,149 4,106,037 1,048,728 12,780,274 Financial liabilities at fair value through profit or loss 89,426 — — — 89,426 Financial liabilities included in other payables and accrued liabilities, excluding accrued interest 10,535,869 — — — 10,535,869 Financial liabilities included in other non-current liabilities (Note) — 107,785 108,896 587,668 804,349 Trade and notes payables 12,360,441 — — — 12,360,441 91,631,488 12,382,567 14,779,056 21,455,384 140,248,495 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 39,296,192 — — — 39,296,192 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 8,855,639 — — — 8,855,639 Financial liabilities included in other non-current liabilities (note) — 108,896 333,354 420,258 862,508 Trade and notes payables 14,007,600 — — — 14,007,600 75,421,123 11,251,093 31,617,861 20,117,079 138,407,156 Note : As disclosed in note 21, as at December 31, 2018, the carrying value of financial liabilities included in other non-current liabilities was RMB841 million (December 31, 2017: RMB769 million). (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, 2017 Financial assets Available- at fair value for-sale through profit or Loans and financial loss receivables investments Total Current Trade and notes receivables — 8,008,937 — 8,008,937 Financial assets at fair value through profit or loss 9,534 — — 9,534 Restricted cash — 2,168,192 — 2,168,192 Cash and cash equivalents — 27,835,866 — 27,835,866 Financial assets included in other current assets — 6,487,547 — 6,487,547 Subtotal 9,534 44,500,542 — 44,510,076 Non-current Available-for-sale financial investments — — 1,928,201 1,928,201 Financial assets included in other non-current assets — 261,156 — 261,156 Subtotal — 261,156 1,928,201 2,189,357 Total 9,534 44,761,698 1,928,201 46,699,433 Financial liabilities December 31, 2017 Financial liabilities at fair Financial value through liabilities at profit or loss amortized cost Total Current Financial liabilities at fair value through profit or loss 89,426 — 89,426 Interest-bearing loans and borrowings — 62,981,070 62,981,070 Financial liabilities included in other payables and accrued liabilities — 11,363,236 11,363,236 Trade and notes payables — 12,360,441 12,360,441 Subtotal 89,426 86,704,747 86,794,173 Non-current Financial liabilities included in other non-current liabilities — 769,061 769,061 Interest-bearing loans and borrowings — 40,289,703 40,289,703 Subtotal — 41,058,764 41,058,764 Total 89,426 127,763,511 127,852,937 Financial assets December 31, 2018 Equity investments designated at fair value Financial assets at fair Financial through other value through profit or assets at comprehensive loss amortized cost income Total Designated as such upon initial Held for recognition trading Current Trade and notes receivables — — 8,100,532 — 8,100,532 Financial assets at fair value through profit or loss — 16,141 — — 16,141 Restricted cash — — 2,165,288 — 2,165,288 Cash and cash equivalents — — 19,130,652 — 19,130,652 Financial assets included in other current assets — — 4,875,525 — 4,875,525 Subtotal — 16,141 34,271,997 — 34,288,138 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 34,476,715 1,729,825 36,222,681 Financial liabilities December 31, 2018 Financial liabilities at fair Financial value through profit or liabilities at loss amortized cost Total Designated as such upon initial Held for recognition trading Current Financial liabilities at fair value through profit or loss — 1,766 — 1,766 Interest-bearing loans and borrowings — — 47,513,582 47,513,582 Financial liabilities included in other payables and accrued liabilities (note 22) — — 9,251,925 9,251,925 Trade and notes payables — — 14,007,600 14,007,600 Subtotal — 1,766 70,773,107 70,774,873 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 — 1,766 125,821,552 125,823,318 (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 12) 261,156 204,718 242,567 182,132 261,156 204,718 242,567 182,132 Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial liabilities Financial liabilities included in other non-current liabilities (note 21) 769,061 841,059 660,688 816,529 Long-term interest-bearing loans and borrowings (note 19) 40,289,703 54,207,386 39,475,392 53,207,052 41,058,764 55,048,445 40,136,080 54,023,581 Management has assessed that the fair values of cash and cash equivalents, restricted cash, 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 following methods and assumptions were used to estimate the fair values: · 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 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, 2018 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, 2017 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 9,534 — — 9,534 Available-for-sale financial investments: Listed equity investments 9,701 — — 9,701 Other unlisted investment — — 1,848,000 1,848,000 19,235 — 1,848,000 1,867,235 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 Liabilities measured at fair value As at December 31, 2017 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 89,426 — — 89,426 89,426 — — 89,426 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 Assets for which fair values are disclosed As at December 31, 2017 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 — 242,567 — 242,567 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 assets at amortized cost: Financial assets included in other non-current assets — 182,132 — 182,132 Liabilities for which fair values are disclosed As at December 31, 2017 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 — 660,688 — 660,688 Long-term interest-bearing loans and borrowings — 39,475,392 — 39,475,392 — 40,136,080 — 40,136,080 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 During the year ended December 31, 2018, 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 (2017: Nil). Below is a summary of significant unobservable inputs to the valuation of financial instruments as at 31 December 2018 and 2017: Significant Valuation Technique unobservable input Range Equity investments in Size Industry Investment Fund 31 December 2018 Net Assets Method Net Assets 5,000,000 31 December 2017 Net Assets Method Net Assets 5,600,000 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, 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 is as follows: December 31, December 31, Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) 132,493,752 130,966,279 Less: restricted cash, time deposits and cash and cash equivalents (30,004,058) (21,295,940) Net debt 102,489,694 109,670,339 Total equity 65,742,596 67,669,202 Add: net debt 102,489,694 109,670,339 Less: non-controlling interests (26,054,567) (15,254,312) Total capital attributable to owners of the parent 142,177,723 162,085,229 Gearing ratio 72 % 68 % |
PARTLY-OWNED SUBSIDIARIES WITH
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
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 % Guizhou Huajin 40.00 % 40.00 % Guizhou Huaren N/A 60.00 % Inner Mongolia Huayun new material Co.,Ltd (“Huayun”) (Note) 50.00 % 50.00 % Profit/(loss) for the year allocated to non-controlling interests Ningxia Energy (5,670) 214,479 Guizhou Huajin 410,023 291,009 Guizhou Huaren N/A 20,783 Huayun 72,903 186,945 Dividends distributed to non-controlling interests Ningxia Energy 3,264 351,979 Guizhou Huajin — 200,000 Guizhou Huaren — — Huayun — — Accumulated balances of non-controlling interests at the reporting dates Ningxia Energy 4,914,902 4,757,014 Guizhou Huajin 782,176 Guizhou Huaren N/A Huayun Note: the Group owned 51% of the voting right of Huayun. The following tables illustrate the summarised financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: 2017 Ningxia Energy Revenue 5,624,059 Total expenses 5,691,240 Loss for the year (67,181) Total comprehensive income for the year (67,181) Current assets 4,538,735 Non-current assets 33,716,269 Current liabilities 7,944,491 Non-current liabilities 19,488,716 Net cash flows from operating activities 2,110,801 Net cash flows used in investing activities (3,933,743) Net cash flows from financing activities 1,350,275 Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (472,667) 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 The following tables illustrate the summarised financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: 2017 Guizhou Huajin Revenue 4,123,352 Total expenses 3,098,295 Profit for the year 1,025,057 Total comprehensive income for the year 1,025,057 Current assets 1,820,262 Non-current assets 2,841,975 Current liabilities 1,958,230 Non-current liabilities 965,880 Net cash flows from operating activities 1,162,069 Net cash flows used in investing activities (7,437,104) Net cash flows used in financing activities (1,835,878) Effect of foreign exchange rate changes, net (221,567) Net increase in cash and cash equivalents (8,332,480) 2018 Guizhou Huajin Revenue 4,018,682 Total expenses 3,291,160 Profit for the year 727,522 Total comprehensive income for the year 727,522 Current assets 1,495,922 Non-current assets 2,752,815 Current liabilities 1,875,227 Non-current liabilities 418,070 Net cash flows from operating activities 1,104,759 Net cash flows used in investing activities (75,066) Net cash flows used in financing activities (1,075,311) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (45,618) The following tables illustrate the summarised financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: 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 used in financing activities (115,222) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (490,684) The following tables illustrate the summarised financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: 2017 Huayun Revenue 3,085,361 Total expenses 2,939,556 Profit for the year 145,805 Total comprehensive income for the year 145,805 Current assets 2,151,021 Non-current assets 7,549,859 Current liabilities 3,525,808 Non-current liabilities 4,122,238 Net cash flows from operating activities 263,559 Net cash flows used in investing activities (4,408,396) Net cash flows used in financing activities 4,308,874 Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 164,037 2018 Huayun Revenue 8,099,579 Total expenses 7,725,689 Profit for the year 373,890 Total comprehensive income for the year 373,890 Current assets 2,372,120 Non-current assets 8,338,220 Current liabilities 4,342,807 Non-current liabilities 3,947,839 Net cash flows from operating activities 1,448,853 Net cash flows used in investing activities (2,097,536) Net cash flows used in financing activities 614,418 Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (34,265) |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2018 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 38. BUSINESS COMBINATION (a) Acquisition of Bayer aluminum production line On January 1, 2016, Chalco Shandong, a subsidiary of the Company, completed the swap of its certain assets and liabilities with Shandong Aluminum, a subsidiary of Chinalco. The assets disposed of by Chalco Shandong include the relevant assets and liabilities of the electrolysis aluminum plant except for the electrolysis production line (mainly carbon assets), the aluminum processing plant and the hospital ward building of Chalco Shandong (the “Assets Disposed of“). The assets acquired by Chalco Shandong comprised the relevant assets and liabilities of the Bayer alumina production line of Shandong Aluminum which, in the opinion of directors of the Company, constitute businesses (the “Business Acquired“). According to the final consideration, Chalco Shandong shall pay a net consideration amounting to RMB162 million. As at the combination date, the carrying amounts of the Business Acquired and Assets Disposed of were RMB327 million and RMB176 million, respectively. Before and after the transaction, 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 transaction date was January 1, 2016, which was determined by the date that the transfer of the rights and risks of the assets and liabilities was completed. The carrying amounts of the assets and liabilities of Business Acquired as at the transaction date and the comparative financial figures were as follows: December 31, January 1, Assets Property, plant and equipment 328,354 328,354 Liabilities Other payables and accrued expenses 1,488 1,488 Net assets 326,866 326,866 Difference recognized in equity — 11,418 338,284 Cash 161,962 Carrying values of assets disposed of 176,322 Total purchase consideration 338,284 (b) Acquisition of pseudoboehmite and activated silicon powder production lines On June 28, 2016, the Shanxi Branch of the Company (“Shanxi Branch“) entered into an Asset Transfer Agreement with Shanxi Aluminum Plant, pursuant to which, the Shanxi Branch acquired pseudoboehmite and activated silicon powder production lines of Science and Technology Chemical Company, a branch of Shanxi Aluminum Plant, at a total cash consideration of RMB43.06 million. In the opinion of directors of the Company, the production lines constitute a business. The total cash consideration was determined based on the asset appraisal report performed by an independent qualified valuer. Shanxi Aluminum Plant is a subsidiary of Chinalco, the parent company of the Group. Before and after the acquisition, both Shanxi Aluminum Plant and the Company are controlled by Chinalco, and the control is not temporary. Thus, the acquisition is considered to be business combination under common control. The transaction date is July 5, 2016, which is determined by the date of transfer of the assets. The carrying amount of the assets and liabilities of pseudoboehmite and activated silicon powder production lines as at the transaction date and the comparative financial figures were as follows: December 31, July 5, Assets Property, plant and equipment 29,966 28,860 Liabilities Other payables and accrued expenses 2,503 — Net assets 27,463 28,860 Difference recognized in equity 14,201 43,061 Cash 43,061 Total purchase consideration 43,061 The acquisition of Shanxi Aluminum Plant has no impact on the Group’s cash and cash equivalents. (c) Acquisition of equity interest in Chinalco Shanghai On August 8, 2016, through the Shanghai United Assets and Equity Exchange, the Company was affirmed as the acquirer of the 60% equity interest in Chinalco Shanghai and the Company entered into an equity transfer agreement with Chinalco, pursuant to which, the Company acquired the 60% equity interest of Chinalco Shanghai with a total cash consideration of RMB2,113.76 million. The consideration was determined based on the appraisal value of the equity of Chinalco Shanghai. Subsequent to the acquisition, the Group exercised control over Chinalco Shanghai. Before and after the acquisition, both Chinalco Shanghai and the Company are controlled by Chinalco, and the control is not temporary. Thus, the acquisition of 60% equity interest in Chinalco Shanghai is considered to be business combination under common control. The transaction date was September 9, 2016, which was determined by the date that the Group obtained control over Chinalco Shanghai. The book values of the assets and liabilities of Chinalco Shanghai Company Limited as at the transaction date and the comparative financial figures were as follows: December 31, September 9, Assets Property, plant and equipment 414,766 494,725 Land use rights 742,771 731,967 Inventories 22 15 Other current assets 916 1,425 Restricted cash and time deposits 51,500 70,500 Cash and cash equivalents 1,156 2,164 Liabilities Interest bearing loans and borrowings 241,118 330,549 Trade and notes payables 147 29 Other payables and accrued expenses 1,598 1,951 Net assets 968,268 968,267 Non-controlling interests 387,307 Net assets acquired 580,960 Difference recognized in equity 1,532,801 2,113,761 Satisfied by cash 2,113,761 Total purchase consideration 2,113,761 As at December 31, 2016, the Group has paid up the purchase consideration amounting to RMB2,114 million. (d) Acquisition of equity interest in Xinghua Technology On December 5, 2016, through China Beijing Equity Exchange, the Company, and Chalco Shandong entered into equity transfer agreements with Shanxi Aluminum Plant and Shandong Aluminum respectively, pursuant to which the Company and Chalco Shandong acquired 33% and 33% equity interests of Xinghua Technology, from Shanxi Aluminum Plant and Shandong Aluminum respectively. The considerations for the acquisition of 33% and 33% equity interests of Xinghua Technology were RMB257.76 million and RMB257.76 million, respectively, which were determined based on the appraisal value of Xinghua Technology. Up to December 31, 2016, the Group has paid RMB335.09 million based on the equity transfer agreements. The remaining considerations will be paid before December 31, 2017 with interest at the prevailing one year lending rate quoted by the People's Bank of China. Xinghua Technology was a subsidiary of Chinalco, the parent company of the Group. Subsequent to the acquisition, the Group had control over Xinghua Technology. Before and after the acquisition, both Xinghua Technology and the Company are controlled by Chinalco, and the control is not temporary. Thus, the acquisition of 66% equity interests in Xinghua Technology is considered to be a business combination under common control. The transaction date was December 23, 2016, which was date that the Group obtained control over Xinghua Technology. The book values of the assets and liabilities of Xinghua Technology Ltd. as at the transaction date and the comparative financial figures were as follows: December 31, December 23, Assets Property, plant and equipment 978,596 1,134,185 Land use rights — 8,339 Other non-current assets 1,474 8,334 Trade and notes receivables 2,423 5,471 Inventories 164,262 170,986 Other current assets 89,626 86,283 Restricted cash and time deposits 15,000 184,060 Cash and cash equivalents 1,910 19,828 Liabilities Interest bearing loans and borrowings (non-current) 34,086 14,909 Other non-current liabilities 47,900 43,921 Interest bearing loans and borrowings (current) 338,393 354,181 Trade and notes payables 230,235 484,755 Other payables and accrued expenses 329,184 398,239 Income tax payable — 9,919 Net assets 273,493 311,562 Non-controlling interests 105,931 Net assets acquired 205,631 Difference recognized in equity 309,890 515,521 Satisfied by cash 515,521 Total purchase consideration 515,521 (e) Acquisition of equity interest in Xinghua Technology As at December 31, 2016, the Group has paid the purchase consideration of RMB335 million. As at December 31, 2017, the Group has paid the purchase consideration of RMB61 million with notes receivables and the Group has not paid the remaining consideration of approximately RMB121 million. (f) 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 (g) 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. (h) 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 31 August 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 31 August 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. (i) 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) (j) 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. (k) 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. (l) 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 (m) 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 (n) 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 (o) 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 |
DISPOSAL OF BUSINESSES
DISPOSAL OF BUSINESSES | 12 Months Ended |
Dec. 31, 2018 | |
DISPOSAL OF BUSINESSES | |
DISPOSAL OF BUSINESSES | 39. DISPOSAL OF BUSINESSES (a) Disposed of the Environmental Protection Business On June 29, 2016, each of the Lanzhou Branch and three subsidiaries, Baotou Aluminum Shandong Huayu and Ningxia Energy of the Company (collectively the “Sellers“ and each a “Seller“), entered into a business transfer agreement with Aluminum SPC, pursuant to which the Sellers agreed to sell and Aluminum SPC agreed to acquire the environmental protection business. Aluminum SPC is a joint venture of the Company and SPC. The environmental protection business includes the environmental protection assets and relevant liabilities in relation to the desulfurization, denitration and dedusting of the coal fired generating units of the Sellers (collectively as “Environmental Protection Business“). The aggregate consideration of the business transfer agreements was RMB1,754 million, which was determined based on the valuation reports of the Environmental Protection Business on the valuation base date of March 31, 2016. As at December 31, 2016, all the cash consideration of disposal of environmental assets was received. The Group disposed of the Environmental Protection Business with a carrying value of RMB1,183 million and recognized a disposal gain of RMB571 million in the period. The transaction was completed on June 30, 2016. The details of the net assets disposed of are as follows: June 30, 2016 Net assets disposed of: Property, plant and equipment 1,187,802 Trade and notes payables (2,042) Accruals and other payables (2,665) 1,183,095 Gain on disposal of the Environmental Protection Business 571,270 Cash consideration 1,754,365 (b) 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) (c) 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. (d) 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. (e) 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 Aluminium 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. (f) 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. (g) 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. (h) 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. (i) 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. * The English name represents the best effort made by management of the Group in translating its Chinese name as it does not have any official English names. |
OTHER EQUITY INSTRUMENTS
OTHER EQUITY INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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 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 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 500 Bps every three 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. Pursuant to the terms and conditions of the 2013 Senior Perpetual Securities, the 2015 Perpetual Medium-term Notes and the 2016 Senior Perpetual Securities, 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, 2018 | |
CONTINGENT LIABILITIES | |
CONTINGENT LIABILITIES | 41. CONTINGENT LIABILITIES As at December 31, 2018 and 2017, the Group had no significant contingent liabilities. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS | |
COMMITMENTS | 42. COMMITMENTS (a) Capital commitments on property, plant and equipment December 31, December 31, Contracted, but not provided for 2,967,541 3,942,933 (b) Commitments under operating leases The future aggregate minimum lease payments as at December 31, 2018 pursuant to non-cancellable lease agreements entered into by the Group are summarised as follows: December 31, December 31, Within one year 658,574 541,541 In the second to fifth years, inclusive 2,112,800 1,880,058 After five years 12,544,108 10,567,925 15,315,482 12,989,524 (c) Other capital commitments As at December 31, 2018, the commitments to make capital contributions to the Group’s joint ventures and associates were as follows: December 31, December 31, Associates 374,800 82,800 Joint ventures — 460,000 374,800 542,800 |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2018 | |
EVENTS AFTER THE REPORTING PERIOD | |
EVENTS AFTER THE REPORTING PERIOD | 43. EVENTS AFTER THE REPORTING PERIOD (a) On January 16, 2019, the Group completed an issuance of short-term bonds with a total face value of RMB2 billion at par value of RMB100.00 per unit which will mature in March 2019 for working capital needs. The fixed annual coupon interest rate of these bonds is 2.99%. (b) On January 22, 2019, the Group completed an issuance of corporate bonds with a total face value of RMB2 billion at par value of RMB100.00 per unit which will mature in January 2022 for working capital needs and repayment of bank borrowings. The fixed annual coupon interest rate of these bonds is 3.80%. (c) On March 14, 2019, 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 September 2019 for working capital needs. The fixed annual coupon interest rate of these bonds is 2.64%. (d) On March 15, 2019, 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 May 2019 for working capital needs. The fixed annual coupon interest rate of these bonds is 2.90%. (e) On March 20, 2019, the Group completed an issuance of short-term bonds with a total face value of RMB3 billion at par value of RMB100.00 per unit which will mature in September 2019 for working capital needs. The fixed annual coupon interest rate of these bonds is 2.98%. (f) On April 24, 2019, 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 June 2019 for working capital needs. The fixed annual coupon interest rate of these bonds is 2.89%. |
COMPARATIVE AMOUNTS
COMPARATIVE AMOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
COMPARATIVE AMOUNTS | |
COMPARATIVE AMOUNTS | 44. COMPARATIVE AMOUNTS Certain comparative amounts have been restated as a result of the business combinations under common control and voluntary change in the accounting policy as disclosed in note 38 and note 2.2(d). The comparative consolidated statements of cash flows for the years ended December 31, 2016 and 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, 2018 | |
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 24, 2019. |
BASIS OF PREPARATION AND SIGN_2
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 under the historical cost convention, except for equity investments at fair value through other comprehensive income and financial assets and liabilities at fair value through profit or loss which have been measured at fair value. These financial statements are presented in thousands of Chinese Renminbi ("RMB") unless otherwise stated. Going concern As at December 31, 2018, the Group’s current liabilities exceeded its current assets by approximately RMB15,853 million (December 31, 2017: RMB21,693 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 2019; · Unutilized banking facilities of approximately RMB121,518 million as at December 31, 2018, of which amounts totalling RMB92,582 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, 2018. 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, 2018. 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. The financial statements of the subsidiaries are prepared for the same reporting period as the Company using consistent accounting policies. 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 or 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. 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 combinations 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 the 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 profit or loss and other 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 which 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 The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group, other than common control combinations. The considerations transferred for the acquisition of a subsidiary are the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability 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 their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The excess of the consideration transferred, the amount recognized for non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. 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 proportionate share of net assets in the event of liquidation at fair value or at the proportionate share of the acquiree's identifiable net assets. All other components of non-controlling interests are measured at fair value. Acquisition-related costs are expensed as incurred. 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. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not remeasured and subsequent settlement is accounted for within equity. (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 2 Classification and Measurement of Share-based Payment Transactions Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers Amendments to IFRS 15 Clarifications to IFRS 15 Revenue from Contracts with Customers Amendments to IAS 40 Transfers of Investment Property IFRIC 22 Foreign Currency Transactions and Advance Consideration Annual Improvements 2014-2016 Cycle Amendments to IFRS 1 and IAS 28 Except for the amendments to IFRS 4 and Annual Improvements 2014-2016 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) (b) 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. Classification and measurement The following information sets out the impacts of adopting IFRS 9 on the consolidated statement of financial position, including the effect of replacing IAS 39's incurred credit loss calculations with IFRS 9’s expected credit losses (“ECLs”). A reconciliation between the carrying amounts under IAS 39 and the balances reported under IFRS 9 as at January 1, 2018 is as follows: IAS 39 IFRS 9 measurement measurement Fair value Notes Category Amount Re-classification ECL adjustment Amount Category RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 Assets Financial assets Trade and notes receivables L&R 8,008,937 — (112,407) — 7,896,530 AC Other current assets L&R 6,487,548 — (38,502) — 6,449,046 AC Other non-current assets L&R 261,156 — — — 261,156 AC Financial Assets at fair value through profit or loss FVPL 9,534 — — — 9,534 FVPL Cash and cash equivalents L&R 27,835,866 — — — 27,835,866 AC Restricted cash L&R 2,168,192 — — — 2,168,192 AC Available-for-sale financial investments (i) AFS 1,928,201 (1,928,201) — — — N/A Equity investments designated at fair value through other comprehensive income (i) N/A — 1,928,201 — 15,114 1,943,315 FVOCI (Equity) 46,699,434 — (150,909) 15,114 46,563,639 Total assets 199,816,799 — (150,909) 15,114 199,681,004 Liabilities Other liabilities Deferred tax liabilities 993,742 — — 3,641 997,383 Total Liabilities 134,074,203 — — 3,641 134,077,844 1 L&R: Loans and receivables 2 AC: Financial assets or financial liabilities at amortized cost 3 FVPL: Financial assets at fair value through profit or loss 4 AFS: Available-for-sale investments 5 FVOCI: Financial assets at fair value through other comprehensive income Notes: The Group has elected the option to irrevocably designate certain of its previous available-for-sale equity investments as equity investments at fair value through other comprehensive income. Impairment The following table reconciles the aggregate opening impairment allowances under IAS 39 to the ECL allowances under IFRS 9. Re-measurement equals to the effect of adoption of IFRS 9 in note 14 and note 15. Impairment allowances ECL allowances under IAS 39 Re-measurement under IFRS 9 at December 31, 2017 (note 14/note 15) at January 1, 2018 RMB'000 RMB'000 RMB'000 Trade receivables 546,102 112,407 658,509 Other current assets 1,673,122 38,502 1,711,624 2,219,224 150,909 2,370,133 Impact on reserves and accumulated losses The impact of transition to IFRS 9 on reserves and accumulated losses is as follows: Reserves and losses RMB'000 Fair value reserve under IFRS 9 (gain on available-for-sale financial assets under IAS 39) Balance as at December 31, 2017 under IAS 39 6,836 Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 14,263 Deferred tax in relation to the above (3,428) Balance as at January 1, 2018 under IFRS 9 17,671 Accumulated losses Balance as at December 31, 2017 under IAS 39 (3,368,095) Adjustment due to business combinations under common control (note 38) 35,724 Recognition of expected credit losses for trade receivables under IFRS 9 (94,844) Recognition of expected credit losses for current financial assets at amortized cost under IFRS 9 (38,502) Balance as at January 1, 2018 under IFRS 9 (3,465,717) Non-controlling interests Balance as at December 31, 2017 under IAS 39 26,035,429 Adjustment due to business combinations under common control (note 38) 19,138 Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 851 Recognition of expected credit losses for trade receivables under IFRS 9 (17,563) Deferred tax in relation to the above (213) Balance as at January 1, 2018 under IFRS 9 26,037,642 (c) Construction Contracts , IAS 18 Revenue and related interpretations and it applies, with limited exceptions, to all revenue arising from contracts with customers. IFRS 15 establishes a new five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in IFRS 15 provide a more structured approach for measuring and recognising revenue. The standard also introduces extensive qualitative and quantitative disclosure requirements, including disaggregation of total revenue, information about performance obligations, changes in contract asset and liability account balances between periods and key judgements and estimates. The disclosures are included in note 4 to the financial statements. As a result of the application of IFRS 15, the Group has changed the accounting policy with respect to revenue recognition in note 2.27 to the financial statements. The Group has adopted IFRS 15 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. The nature of the adjustments as at January 1, 2018 and the reasons for the significant changes in the consolidated statement of financial position as at December 31, 2018 are described below: Consideration received from customers in advance Before the adoption of IFRS 15, the Group recognized consideration received from customers in advance as other payables. Under IFRS 15, the amount is classified as contract liabilities. Therefore, upon adoption of IFRS 15, the Group reclassified RMB1,372 million from other payables to contract liabilities as at January 1, 2018 in relation to the consideration received from customers in advance as at January 1, 2018. As at December 31, 2018, under IFRS 15, RMB1,579 million was recorded as contract liabilities in relation to the consideration received from customers in advance for the sale of industrial products. (d) 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. The main effects of retrospective adjustments caused by the above accounting policy change on financial statements are as follows: After change in Before change in Reclassification on accounting policy accounting policy change in December 31, Consolidated statement of financial position December 31, 2017 accounting policy Assets: Property, plant and equipment 96,430,815 (803,238) 95,627,577 Land use rights 3,746,602 (169,590) 3,577,012 Intangible Assets 10,653,175 (15,542) 10,637,633 110,830,592 (988,370) 109,842,222 Total assets 200,805,169 (988,370) 199,816,799 Liabilities: Other non-current liabilities 3,442,030 (988,370) 2,453,660 Total liabilities 135,062,573 (988,370) 134,074,203 After change in Before change in Reclassification on accounting policy accounting policy change in December 31, Consolidated statement of profit or loss and other comprehensive income December 31, 2017 accounting policy Cost of sales (166,494,842) 204,607 (166,290,235) General and administration expenses (4,604,055) 54,849 (4,549,206) Other income 349,329 (259,456) 89,873 (170,749,568) — (170,749,568) Profit before tax 3,049,010 — 3,049,010 Before change in Reclassification on After change in accounting policy change in accounting policy Consolidated statement of financial position December 31, 2018 accounting policy December 31, 2018 Assets: Property, plant and equipment 107,066,073 (872,704) 106,193,369 Land use rights 4,484,055 (203,764) 4,280,291 Intangible Assets 12,881,804 (2,439) 12,879,365 Other non-current assets 4,446,938 (4,294) 4,442,644 128,878,870 (1,083,201) 127,795,669 Total assets 201,959,315 (1,083,201) 200,876,114 Liabilities: Other non-current liabilities 3,521,365 (1,083,201) 2,438,164 Total liabilities 134,290,113 (1,083,201) 133,206,912 Before change in Reclassification on After change in accounting policy change in accounting policy Consolidated statement of profit or loss and other comprehensive income December 31, 2018 accounting policy December 31, 2018 Cost of sales (167,254,868) 225,452 (167,029,416) General and administration expenses (4,540,590) 582,523 (3,958,067) Research and development expenses (630,815) 3,942 (626,873) Selling and distribution expenses (2,496,977) 44 (2,496,933) Other income 947,328 (811,961) 135,367 (173,975,922) — (173,975,922) Profit before tax 2,303,511 — 2,303,511 (e) (f) |
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 2 Amendments to IFRS 9 Prepayment Features with Negative Compensation 1 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 4 IFRS 16 Leases 1 IFRS 17 Insurance Contracts 3 Amendments to IAS 1 and IAS 8 Definition of Material 2 Amendments to IAS 19 Plan Amendment, Curtailment or Settlement 1 Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures 1 IFRIC 23 Uncertainty over Income Tax Treatments1 Annual Improvements 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 1 1 Effective for annual periods beginning on or after January 1, 2019 2 Effective for annual periods beginning on or after January 1, 2020 3 Effective for annual periods beginning on or after January 1, 2021 4 No mandatory effective date yet determined but available for adoption Further information about those IFRSs that are expected to be applicable to the Group is described below. 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. Amendments to IFRS 10 and IAS 28 address an inconsistency between the requirements in IFRS 10 and in IAS 28 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 previous mandatory effective date of amendments to IFRS 10 and IAS 28 was removed by the IASB in January 2016 and a new mandatory effective date will be determined after the completion of a broader review of accounting for associates and joint ventures. However, the amendments are available for adoption now. IFRS 16 replaces IAS 17 Leases , IFRIC Interpretation 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 recognize assets and liabilities for most leases. The standard includes two elective recognition exemptions for lessees – leases of low-value assets and short-term leases. At the commencement date of a lease, a lessee will recognize a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The right-of-use asset is subsequently measured at cost less accumulated depreciation and any impairment losses unless the right-of-use asset meets the definition of investment property in IAS 40, or relates to a class of property, plant and equipment to which the revaluation model is applied. The lease liability is subsequently increased to reflect the interest on the lease liability and reduced for the lease payments. Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees will also be required to remeasure the lease liability upon the occurrence of certain events, such as change in the lease term and change in future lease payments resulting from a change in an index or rate used to determine those payments. Lessees will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Lessor accounting under IFRS 16 is substantially unchanged from the accounting under IAS 17. Lessors will continue to classify all leases using the same classification principle as in IAS 17 and distinguish between operating leases and finance leases. IFRS 16 requires lessees and lessors to make more extensive disclosures than under IAS 17. Lessees can choose to apply the standard using either a full retrospective or a modified retrospective approach. The Group will adopt IFRS 16 from January 1, 2019. The Group plans to adopt the transitional provisions in IFRS 16 to recognize the cumulative effect of initial adoption as an adjustment to the opening balance of accumulated losses at January 1, 2019 and will not restate the comparatives. In addition, the Group plans to apply the new requirements to contracts that were previously identified as leases applying IAS 17 and measure the lease liability at the present value of the remaining lease payments, discounted using the Group's incremental borrowing rate at the date of initial application. The right-of-use asset will be 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 statement of financial position immediately before the date of initial application. The Group plans to use the exemptions allowed by the standard on lease contracts whose lease terms end within 12 months as of the date of initial application. During 2018, the Group has performed a detailed assessment on the impact of adoption of IFRS 16. The Group has estimated that right-of-use assets of RMB6,929 million and lease liabilities of RMB6,929 million will be recognized at January 1, 2019. 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 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 expects to adopt the amendments on January 1, 2019 and will assess its business model for such long-term interests based on the facts and circumstances that exist on January 1, 2019 using the transitional requirements in the amendments. The Group also intends to apply the relief from restating comparative information for prior periods upon adoption of the amendments. IFRIC-Int 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. The interpretation is to be applied retrospectively, either fully retrospectively without the use of hindsight or retrospectively with the cumulative effect of application as an adjustment to the opening equity at the date of initial application, without the restatement of comparative information. The Group expects to adopt the interpretation from January 1, 2019. The interpretation is not expected to have any significant impact on the Group’s financial statements. |
Investments in joint ventures and associates | 2.4 Investments in joint ventures and associates 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 unanimous consent of the parties sharing control. 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. The Group’s investments in associates and joint ventures are accounted for using the equity method, less any impairment losses Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Group’s share of net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment, and tested for impairment when any indicators of impairment are identified. The consolidated statement of profit or loss and other comprehensive income includes the Group’s share of the results of operations of the associate or joint venture. Any change in OCI of those investees is presented as part of the Group’s OCI. 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 the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture. The aggregate of the Group’s share of profit or loss of an associate and a joint venture is shown in the consolidated statement of profit or loss and other comprehensive income and represents profit or loss after tax and non-controlling interests in the subsidiaries of the associate or joint venture. The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognize an impairment loss on its investment in its associate or joint venture. 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 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 the 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: (i) the entity and the Group are members of the same group; (ii) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity); (iii) the entity and the Group are joint ventures of the same third party; (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group; (vi) the entity is controlled or jointly controlled by a person identified in (a); (vii) 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 (viii) 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 futures, options and forward contracts and equity investments at fair value at the end of each reporting period. Also, the fair values of financial instruments measured at amortized cost are disclosed in note 36. 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, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised 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 directly or indirectly observable 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 categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
Foreign currency translation | 2.8 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 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 | 2.9 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 The depreciation method, residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. 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, and plant and equipment pending for installation, and is stated at cost less any impairment losses. Cost comprises construction expenditures, other expenditures necessary for the purpose of preparing the CIP for its intended use and those borrowing costs incurred before the asset is ready for its intended use that is eligible for capitalisation. CIP is transferred to property, plant and equipment when the CIP is ready for its intended use. |
Intangible assets | 2.10 Intangible assets (a) Goodwill 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 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. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill relates. Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not reversed in a subsequent period. Any impairment is recognized immediately as an expense and is not subsequently reversed. 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. (b) Mining rights and mineral exploration rights The Group’s mineral exploration rights and mining rights relate to coal, bauxite and other mines. (i) Recognition 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. (c) 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. (d) Primary aluminium production quota Primary aluminium production quota are initially recorded at purchased costs incurred to acquire the quota. Amortization is calculated on the straight-line basis over the expected production period. (e) Other intangible assets Other intangible assets mainly include profit-sharing rights of Maochang mine, which are initially recorded at costs incurred to acquire the specific right. Amortization is calculated on the straight-line basis over its estimated useful life. The estimated useful live of profit-sharing rights of Maochang mine is 22.5 years. (f) Periodic review of the useful lives and amortization method For intangible assets with finite useful lives, 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 | 2.11 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. |
Impairment of non-financial assets | 2.12 Impairment of non-financial assets Where an indication of impairment exists, or when annual impairment testing for an asset is required (other than inventories, for example, goodwill or intangible assets with an 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. 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. |
Investment properties | 2.13 Investment properties Investment properties are interests in land and buildings (including the leasehold interest under an operating lease for a property 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 model 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 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 | 2.14 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. |
Financial assets | 2.15 Financial assets Policies under IFRS 9 applicable from January 1, 2018 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 (applicable from January 1, 2018)” 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. 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. 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) The Group measures financial assets at amortized cost if both of the following conditions are met: · Financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows. · Contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the effective interest method and are subject to impairment. Gains and losses are recognized in the consolidated statement of profit or loss and other comprehensive income when the asset is derecognized, modified or impaired. 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 the statement of profit or loss. Dividends are recognized as other gains in the consolidated statement of profit or loss and other comprehensive income 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 include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through other comprehensive income, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. 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 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. Impairment of financial assets The Group recognizes an allowance for 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 expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. 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 receivable, the Group chooses as its accounting policy to adopt the simplified approach in calculating ECLs with policies as described above. Policies under IAS 39 applicable before January 1, 2018 Classification The Group classifies its financial assets in the following categories : financial assets at fair value through profit or loss, loans and receivables and available-for-sale financial investments. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. (i) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purposes of sale in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments as defined by IAS 39. Financial assets at fair value through profit or loss are carried in the consolidated statement of financial position at fair value with positive net changes in fair value presented as other income and gains and negative net changes in fair value presented as finance costs in profit or loss. These net fair value changes do not include any dividends or interest earned on these financial assets, which are recognized in accordance with the policies set out for "Revenue recognition” (applicable before January 1, 2018) below. Financial assets designated upon initial recognition as at fair value through profit or loss are designated at the date of initial recognition and only if the criteria in IAS 39 are satisfied. Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated as at fair value through profit or loss. These 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. (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such assets are subsequently measured at amortized cost using the effective interest rate method less any allowance for impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and includes fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in other income and gains in profit or loss. The loss arising from impairment is recognized in profit or loss in finance costs for loans and in impairment losses of financial assets for receivables. (iii) Available-for-sale financial investments Available-for-sale financial investments are non-derivative financial assets in listed and unlisted equity investments and debt securities. Equity investments classified as available for sale are those which are neither classified as held for trading nor designated as at fair value through profit or loss. Debt securities in this category are those which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to changes in market conditions. After initial recognition, available-for-sale financial investments are subsequently measured at fair value, with unrealized gains or losses recognized as other comprehensive income in the available-for-sale investment revaluation reserve until the investment is derecognized, at which time the cumulative gain or loss is recognized in profit or loss in other income, or until the investment is determined to be impaired, when the cumulative gain or loss is reclassified from the available-for-sale investment revaluation reserve to profit or loss in other gains. Interest and dividends earned whilst holding the available-for-sale financial investments are reported as interest income and dividend income, respectively and are recognized in profit or loss as other gains in accordance with the policies set out for "Interest income" and "Dividend income" below. When the fair value of unlisted equity investments cannot be reliably measured because (a) the variability in the range of reasonable fair value estimates is significant for that investment or (b) the probabilities of the various estimates within the range cannot be reasonably assessed and used in estimating fair value, such investments are stated at cost less any impairment losses. The Group evaluates whether the ability and intention to sell its available-for-sale financial assets in the near term are still appropriate. When, in rare circumstances, the Group is unable to trade these financial assets due to inactive markets, the Group may elect to reclassify these financial assets if management has the ability and intention to hold the assets for the foreseeable future or until maturity. For a financial asset reclassified from the available-for-sale category, the fair value carrying amount at the date of reclassification becomes its new amortized cost and any previous gain or loss on that asset that has been recognized in equity is amortized to profit or loss over the remaining life of the investment using the effective interest rate. Any difference between the new amortized cost and the maturity amount is also amortized over the remaining life of the asset using the effective interest rate. If the asset is subsequently determined to be impaired, then the amount recorded in equity is reclassified to profit or loss. Recognition and measurement All regular 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. Investments are initially recognized at fair value plus transaction costs, except in the case of financial assets recorded at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed in profit or loss. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. Available-for-sale financial investments and financial assets at fair value through profit or loss are subsequently carried at fair value. Loans and receivables are subsequently carried at amortized cost using the effective interest method. Impairment of financial assets The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that occurred after the initial recognition of the asset have an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that a debtor or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults. Financial assets carried at amortized cost For financial assets carried at amortized cost, the Group assesses whether impairment exists individually for financial assets. The amount of any impairment loss identified is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset's original effective interest rate (i.e., the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognized in profit or loss. Interest income continues to be accrued on the reduced carrying amount using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Loans and receivables together with any associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Group. If, in a subsequent period, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off is later recovered, the recovery is credited to other gains in profit or loss. Available-for-sale financial investments For available-for-sale financial investments, the Group assesses at the end of each reporting period whether there is objective evidence that an investment or a group of investments is impaired. If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal payment and amortization) and its current fair value, less any impairment loss previously recognized in profit or loss, is removed from other comprehensive income and recognized in profit or loss. In the case of equity investments classified as available-for-sale financial investments, a significant or prolonged decline in the fair value of the security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial investments, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in other comprehensive income – is removed from other comprehensive income and recognized in profit or loss. Impairment losses recognized in profit or loss on equity instruments are not reversed through profit or loss. The determination of what is "significant" or "prolonged" requires judgement. In making this judgement, the Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost. In the case of debt instruments classified as available for sale, impairment is assessed based on the same criteria as financial assets carried at amortized cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortized cost and the current fair value, less any impairment loss on that investment previously recognized in profit or loss. Future interest income continues to be accrued based on the reduced carrying amount of the asset and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. Impairment losses on debt instruments are reversed through profit or loss if the subsequent increase in fair value of the instruments can be objectively related to an event occurring after the impairment loss was recognized in 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. Policies under IFRS 9 from January 1, 2018 and policies under IAS 39 applicable before January 1, 2018 |
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 financial liabilities at fair value through profit or loss, loans and borrowings, trade and notes payables and other financial liabilities. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification as follows: 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 the consolidated statement of profit or loss and other comprehensive income when the liabilities are derecognized as well as through the effective interest rate amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in finance costs in profit or loss. Financial liabilities at fair value through profit or loss (policies under IFRS 9 applicable from January 1, 2018) 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 the statement of profit or loss and other comprehensive income. The net fair value gain or loss recognized in the consolidated statement of profit or loss and other comprehensive income does not include any interest charged on these financial liabilities. Financial liabilities designated upon initial recognition as at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. Gains or losses on liabilities designated at fair value through profit or loss are recognized in profit or loss, except for the gains or losses arising from the Group's own credit risk which are presented in other comprehensive income with no subsequent reclassification to t 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 fair value through profit or loss (policies under IAS 39 applicable before January 1, 2018) 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 acquired for the purpose of repurchasing in the near term. This category includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IAS 39. 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 the statement of profit or loss and other comprehensive income. The net fair value gain or loss recognized in the consolidated statement of profit or loss and other comprehensive income does not include any interest charged on these financial liabilities. Financial liabilities designated upon initial recognition as at fair value through profit or loss are designated at the date of initial recognition and only if the criteria in IAS 39 are satisfied. Financial guarantee contracts (policies under IFRS 9 applicable from January 1, 2018) 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 (policies under IFRS 9 applicable from January 1, 2018)"; and (ii) the amount initially recognized less, when appropriate, the cumulative amount of income recognized. Financial guarantee contracts (policies under IAS 39 applicable before January 1, 2018) 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 contract at the higher of (i) the amount of the best estimate of the expenditure required to settle the present obligation at the end of the reporting period; and (ii) the amount initially recognized less, when appropriate, cumulative amortization. Derecognition of financial liabilities (policies under IFRS 9 applicable from January 1, 2018 and IAS 39 applicable before January 1, 2018) 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 | 2.17 Offsetting financial instruments Policies under IFRS 9 from January 1, 2018 and policies under IAS 39 applicable before January 1, 2018 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 | 2.18 Derivative financial instruments Policies under IFRS 9 from January 1, 2018 and policies under IAS 39 applicable before January 1, 2018 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 | 2.19 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 realisable 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 realisable amount and recorded in profit or loss. Net realisable 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. |
Trade and notes receivables | 2.20 Trade and notes receivables Trade and notes receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection of these receivables is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. Trade and notes receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. |
Cash and cash equivalents | 2.21 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. |
Government grants | 2.22 Government grants Government grants are recognized when the Group fulfils the conditions attached to them and there is reasonable assurance that the grant will be received. When the government grant is in the form of monetary assets, it is measured at the actual amount received. When the government grant is in the form of non-monetary assets, the grant is recorded at the fair value of the non-monetary assets. 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. As described in note 2.2 (d), the Group has voluntarily changed the accounting policy for government grants on the presentation in the consolidated statement of financial position and the consolidated statement of profit or loss and other comprehensive income. The revised accounting policies are as follows: For asset-related government grants that are related to non-current assets that already exist at the time of recognising the government grant, the grant is deducted from the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset by way of a reduced depreciation charge. 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 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 deducted from the related expenses or costs when the related expenses or costs are incurred. |
Trade and notes payables and other payables | 2.23 Trade and notes payables and other payables Trade and notes payables and other payables are mainly obligations to pay for goods, equipment or services that have been acquired in the ordinary course of business from suppliers and service providers. These payables are classified as current liabilities if they are due within one year or less (or in the normal operating cycle of the business if longer). |
Employee benefits | 2.24 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 organised by the relevant municipal and provincial governments in the PRC. In 2018, the Group made monthly contributions at the rate of 20% (2017: 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 the 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 the 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. |
Current and deferred income tax | 2.25 Current and deferred 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 carryforward 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 carryforward 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 | 2.26 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 | 2.27 Revenue recognition Applicable from January 1, 2018 Revenue from contracts with customers Revenue from contracts with customers is recognized when control of goods or services is transferred to the customers at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. (a) Revenue from the sales (including sales of scrap and other materials) Revenue from the sale of industrial products or 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. 2.28 Contract liabilities Applicable from January 1, 2018 A contract liability is the obligation to transfer goods or services to a customer for which the Group has received a consideration (or an amount of consideration that is due) from the customer. If a customer pays the consideration before the Group transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the Group performs under the contract. 2.29 Interest income Applicable from January 1, 2018 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. 2.30 Dividend income Applicable from January 1, 2018 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. 2.31 Revenue recognition Applicable before January 1, 2018 The Group recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Group and when specific criteria have been met for each of the Group’s activities (see descriptions below). (a) Sales of goods Revenue from the sales of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, provided that the Group maintains neither managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold. (b) Rendering of services The Group provides machinery processing, transportation and packaging services and other services to third party customers. These services are recognized in the period when the related services are provided. |
Interest income | 2.32 Interest income Applicable before January 1, 2018 Interest income is recognized using the effective interest method. When a loan or receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flows discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans and receivables is recognized using the original effective interest rate. |
Dividend income | 2.33 Dividend income Applicable before January 1, 2018 Dividend income is recognized when the right to receive payment is established. |
Leases | 2.34 Leases 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 the statement of profit or loss and other comprehensive income 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 the statement of profit or loss and other comprehensive income 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 the statement of profit or loss and other comprehensive income 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. When the lease payments cannot be allocated reliably between the land and buildings elements, the entire lease payments are included in the cost of the land and buildings as a finance lease in property, plant and equipment. |
Borrowing costs | 2.35 Borrowing costs General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as 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 eligible for capitalisation. All other borrowing costs are recognized in profit or loss 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 | 2.36 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. |
Provisions | 2.37 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. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as finance costs. |
GENERAL INFORMATION (Tables)
GENERAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GENERAL INFORMATION | |
Schedule of company's principal subsidiaries | Particulars of the Company’s principal subsidiaries are as follows: Percentage of Place of equity 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 74.33 % — 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 % — Shanxi Huasheng Aluminum Co., Ltd. (“Shanxi Huasheng“) (山西華聖鋁業有限公司) PRC/Mainland China 1,000,000 Manufacture and distribution of primary aluminum, aluminum alloy and carbon-related products 51.00 % — 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 % — Zunyi Aluminum Co., Ltd. (遵義鋁業股份有限公司) PRC/Mainland China 3,204,899 Manufacture and distribution of primary aluminum and alumina 67.445 % — Shandong Huayu Alloy Materials Co., Ltd. (“Shandong Huayu”) (山東華宇合金材料有限公司) PRC/Mainland China 1,627,697 Manufacture and distribution of aluminum alloy 55.00 % — 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 18.86 % — Chalco Energy Co., Ltd. (中鋁能源有限公司) PRC/Mainland China 819,993 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 Place of equity attributable to the 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 214,858 Research and development services 100.00 % — Chalco Shandong Co., Ltd. ("Chalco Shandong“) (中鋁山東有限公司) PRC/Mainland China 3,808,995 Manufacture and distribution of alumina 69.20 % — Chalco Zhongzhou Aluminum Co., Ltd. ("Zhongzhou Aluminum“) (中鋁中州鋁業有限公司) PRC/Mainland China 5,071,235 Manufacture and distribution of alumina 63.10 % — China Aluminum Logistics Group Corporation Co., Ltd. (中鋁物流集團有限公司) PRC/Mainland China 558,752 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 270,000 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 968,300 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 1,641,750 Manufacture and distribution of primary aluminum 40.00 % — Guizhou Huaren New Material Co., Ltd. (“Guizhou Huaren”) (貴州華仁新材料有限公司) PRC/Mainland China 1,200,000 Manufacture and distribution of primary aluminum 40.00 % — China Aluminum International Trading Group Co. Ltd. (中鋁國際貿易集團有限公司) PRC/Mainland China 1,030,000 Import and export activities 100.00 % — Chalco Materials Co. Ltd. (中鋁物資有限公司) PRC/Mainland China 1,000,000 Purchase materials 100.00 % — |
BASIS OF PREPARATION AND SIGN_3
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of new and revised IFRSs adapted for the first time for the current year's financial statements | Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers Amendments to IFRS 15 Clarifications to IFRS 15 Revenue from Contracts with Customers Amendments to IAS 40 Transfers of Investment Property IFRIC 22 Foreign Currency Transactions and Advance Consideration Annual Improvements 2014-2016 Cycle Amendments to IFRS 1 and IAS 28 |
Schedule of reconciliation between the carrying amounts under IAS 39 and the balances reported under IFRS 9 | IAS 39 IFRS 9 measurement measurement Fair value Notes Category Amount Re-classification ECL adjustment Amount Category RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 Assets Financial assets Trade and notes receivables L&R 8,008,937 — (112,407) — 7,896,530 AC Other current assets L&R 6,487,548 — (38,502) — 6,449,046 AC Other non-current assets L&R 261,156 — — — 261,156 AC Financial Assets at fair value through profit or loss FVPL 9,534 — — — 9,534 FVPL Cash and cash equivalents L&R 27,835,866 — — — 27,835,866 AC Restricted cash L&R 2,168,192 — — — 2,168,192 AC Available-for-sale financial investments (i) AFS 1,928,201 (1,928,201) — — — N/A Equity investments designated at fair value through other comprehensive income (i) N/A — 1,928,201 — 15,114 1,943,315 FVOCI (Equity) 46,699,434 — (150,909) 15,114 46,563,639 Total assets 199,816,799 — (150,909) 15,114 199,681,004 Liabilities Other liabilities Deferred tax liabilities 993,742 — — 3,641 997,383 Total Liabilities 134,074,203 — — 3,641 134,077,844 1 L&R: Loans and receivables 2 AC: Financial assets or financial liabilities at amortized cost 3 FVPL: Financial assets at fair value through profit or loss 4 AFS: Available-for-sale investments 5 FVOCI: Financial assets at fair value through other comprehensive income |
Schedule of reconciles the aggregate opening impairment allowances | Impairment allowances ECL allowances under IAS 39 Re-measurement under IFRS 9 at December 31, 2017 (note 14/note 15) at January 1, 2018 RMB'000 RMB'000 RMB'000 Trade receivables 546,102 112,407 658,509 Other current assets 1,673,122 38,502 1,711,624 2,219,224 150,909 2,370,133 |
Schedule of impact on reserves and accumulated losses | Reserves and losses RMB'000 Fair value reserve under IFRS 9 (gain on available-for-sale financial assets under IAS 39) Balance as at December 31, 2017 under IAS 39 6,836 Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 14,263 Deferred tax in relation to the above (3,428) Balance as at January 1, 2018 under IFRS 9 17,671 Accumulated losses Balance as at December 31, 2017 under IAS 39 (3,368,095) Adjustment due to business combinations under common control (note 38) 35,724 Recognition of expected credit losses for trade receivables under IFRS 9 (94,844) Recognition of expected credit losses for current financial assets at amortized cost under IFRS 9 (38,502) Balance as at January 1, 2018 under IFRS 9 (3,465,717) Non-controlling interests Balance as at December 31, 2017 under IAS 39 26,035,429 Adjustment due to business combinations under common control (note 38) 19,138 Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 851 Recognition of expected credit losses for trade receivables under IFRS 9 (17,563) Deferred tax in relation to the above (213) Balance as at January 1, 2018 under IFRS 9 26,037,642 |
Schedule of effects of retrospective adjustments caused by change on financial statements | After change in Before change in Reclassification on accounting policy accounting policy change in December 31, Consolidated statement of financial position December 31, 2017 accounting policy Assets: Property, plant and equipment 96,430,815 (803,238) 95,627,577 Land use rights 3,746,602 (169,590) 3,577,012 Intangible Assets 10,653,175 (15,542) 10,637,633 110,830,592 (988,370) 109,842,222 Total assets 200,805,169 (988,370) 199,816,799 Liabilities: Other non-current liabilities 3,442,030 (988,370) 2,453,660 Total liabilities 135,062,573 (988,370) 134,074,203 After change in Before change in Reclassification on accounting policy accounting policy change in December 31, Consolidated statement of profit or loss and other comprehensive income December 31, 2017 accounting policy Cost of sales (166,494,842) 204,607 (166,290,235) General and administration expenses (4,604,055) 54,849 (4,549,206) Other income 349,329 (259,456) 89,873 (170,749,568) — (170,749,568) Profit before tax 3,049,010 — 3,049,010 Before change in Reclassification on After change in accounting policy change in accounting policy Consolidated statement of financial position December 31, 2018 accounting policy December 31, 2018 Assets: Property, plant and equipment 107,066,073 (872,704) 106,193,369 Land use rights 4,484,055 (203,764) 4,280,291 Intangible Assets 12,881,804 (2,439) 12,879,365 Other non-current assets 4,446,938 (4,294) 4,442,644 128,878,870 (1,083,201) 127,795,669 Total assets 201,959,315 (1,083,201) 200,876,114 Liabilities: Other non-current liabilities 3,521,365 (1,083,201) 2,438,164 Total liabilities 134,290,113 (1,083,201) 133,206,912 Before change in Reclassification on After change in accounting policy change in accounting policy Consolidated statement of profit or loss and other comprehensive income December 31, 2018 accounting policy December 31, 2018 Cost of sales (167,254,868) 225,452 (167,029,416) General and administration expenses (4,540,590) 582,523 (3,958,067) Research and development expenses (630,815) 3,942 (626,873) Selling and distribution expenses (2,496,977) 44 (2,496,933) Other income 947,328 (811,961) 135,367 (173,975,922) — (173,975,922) Profit before tax 2,303,511 — 2,303,511 |
Schedule of new and revised IFRSs that have been issued but are not yet effective | Amendments to IFRS 3 Definition of a Business 2 Amendments to IFRS 9 Prepayment Features with Negative Compensation 1 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 4 IFRS 16 Leases 1 IFRS 17 Insurance Contracts 3 Amendments to IAS 1 and IAS 8 Definition of Material 2 Amendments to IAS 19 Plan Amendment, Curtailment or Settlement 1 Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures 1 IFRIC 23 Uncertainty over Income Tax Treatments1 Annual Improvements 2015-2017 Cycle Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 1 1 Effective for annual periods beginning on or after January 1, 2019 2 Effective for annual periods beginning on or after January 1, 2020 3 Effective for annual periods beginning on or after January 1, 2021 4 No mandatory effective date yet determined but available for adoption |
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 years Land use rights 40 - 70 years |
REVENUE AND SEGMENT INFORMATI_2
REVENUE AND SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE AND SEGMENT INFORMATION | |
Schedule of revenue recognized during the years | Sales of goods (net of value-added tax) 144,564,755 180,704,153 179,784,444 Rendering of services 123,966 163,732 215,557 Rental income 165,861 152,543 240,153 144,854,582 181,020,428 180,240,154 |
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 7,019,716 141,979,219 667,095 (67,632,024) 179,784,444 Rendering of services — — 215,557 — — — 215,557 Total revenue 43,979,059 53,771,379 7,235,273 141,979,219 667,095 (67,632,024) 180,000,001 Geographical markets Mainland China 43,979,059 53,771,379 7,235,273 132,762,660 667,095 (67,632,024) 170,783,442 Outside of mainland China — — — 9,216,559 — — 9,216,559 Total revenue 43,979,059 53,771,379 7,235,273 141,979,219 667,095 (67,632,024) 180,000,001 Timing of revenue recognition Goods transferred at a point in time 43,979,059 53,771,379 7,019,716 141,979,219 667,095 (67,632,024) 179,784,444 Services transferred over time — — 215,557 — — — 215,557 Total revenue 43,979,059 53,771,379 7,235,273 141,979,219 667,095 (67,632,024) 180,000,001 Revenue from contracts with customers External customers 14,586,564 41,313,516 7,036,936 116,608,916 454,069 — 180,000,001 Intersegment sales 29,392,495 12,457,863 198,337 25,370,303 213,026 — 67,632,024 43,979,059 53,771,379 7,235,273 141,979,219 667,095 — 247,632,025 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 7,036,936 116,608,916 454,069 — 180,000,001 |
Schedule of disaggregated revenue information recognised performance obligation | Revenue recognized that was included in contract liabilities at the beginning of the reporting period: — Sale of goods 1,277,125 — Others 32,947 1,310,072 |
Schedule of performance obligations | The transaction prices allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at December 31, 2018 are as follows: Within one year 1,579,322 More than one year 132,844 1,712,166 |
Schedule of operating segments | Year ended December 31, 2016 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 30,027,317 35,089,860 4,519,806 114,345,851 504,355 (39,632,607) 144,854,582 Inter-segment revenue (20,508,466) (4,981,936) (137,460) (13,906,423) (98,322) 39,632,607 — Sales of self-produced products (Note (i)) 18,292,949 Sales of products sourced from external suppliers 82,146,479 Revenue from external customers 9,518,851 30,107,924 4,382,346 100,439,428 406,033 — 144,854,582 Segment profit/(loss) before income tax 910,426 2,183,826 33,408 804,207 (1,993,161) (318,017) Income tax expense (403,899) Profit for the year 1,216,790 Other items Finance income 302,230 36,139 51,897 226,941 198,522 — 815,729 Finance costs (1,016,455) (1,226,821) (987,422) (329,454) (1,459,756) — (5,019,908) Share of profits and losses of joint ventures (41,367) — (28,312) — (25,829) — (95,508) Share of profits and losses of associates — 958 87,359 (810) 27,584 — 115,091 Amortization of land use rights (43,523) (27,464) (11,172) (15) (17,550) — (99,724) Depreciation and amortization (excluding the amortization of land use rights) (2,847,343) (2,612,308) (1,298,483) (54,724) (88,095) — (6,900,953) Gain on disposal of property, plant and equipment and land use rights 191,364 361,155 253,566 2,890 7,746 — 816,721 Impairment of property, plant and equipment (35,893) (18,239) (2,948) — — — (57,080) Changes in fair value gains and losses — 16,778 — 109,906 27,901 — 154,585 Realized loss on futures, forward and option contracts, net (1,297) (271,000) — (457,702) (560,268) — (1,290,267) Changes for impairment of inventories 684,271 505,595 159 471,218 1,145 — 1,662,388 Provision for impairment of receivables, net of bad debts recovered 53,144 (2,465) (836) (5,838) — — 44,005 Gain on disposal of associates — — — — 128,833 — 128,833 Dividends from available for sale financial assets — — 1,000 — 139,929 — 140,929 Additions during the period: Investment in joint ventures 2,631,546 — 1,559,966 — 2,048,688 — 6,240,200 Investment in associates 69,000 313,244 2,351,845 146,926 3,045,518 — 5,926,533 Intangible assets 336,603 3 6,857 509 127 — 344,099 Land use rights — 26 20,937 — — — 20,963 Investment properties 50,285 3,354 — 38,628 — — 92,267 Property, plant and equipment (Note (ii)) 2,455,066 4,203,385 1,582,039 42,476 143,736 — 8,426,702 Note: (i) The sales of self-produced products include sales of self-produced alumina amounting to RMB12,795 million, sales of self-produced primary aluminum amounting RMB3,684 million, and sales of self-produced other products amounting to RMB1,814 million. (ii) The additions to property, plant and equipment under sale and leaseback contracts (note 20) are not included. Year ended December 31, 2017 Corporate and other Inter- Primary operating segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 38,997,261 47,245,646 6,250,966 146,854,723 645,314 (58,973,482) 181,020,428 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 100,536,656 Revenue from external customers 14,565,322 36,551,968 5,733,697 123,695,608 473,833 — 181,020,428 Segment profit/(loss) before income tax 3,290,945 826,632 (171,310) 733,731 (1,728,563) 97,575 3,049,010 Income tax expense (643,734) Profit for the year 2,405,276 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) (467,090) (1,814,663) — (5,203,424) 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) (78,724) (86,200) — (6,972,550) Gain on disposal of property, plant and equipment and land use rights 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 gain/(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 Reversal of/(provision for) 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 a 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 aluminum amounting RMB6,680, and sales of self-produced other products amounting to RMB3,292 million. (ii) Change for impairment of inventories do not include change for impairment due to disposal of subsidiaries. (iii) Year ended December 31, 2018 Corporate and other Primary operating Inter-segment Alumina aluminum Energy Trading segments eliminations Total Total revenue 44,150,937 53,802,172 7,235,273 142,016,561 667,235 (67,632,024) 180,240,154 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)) 34,453,683 Sales of products sourced from external suppliers 82,192,575 Revenue from external customers 14,758,442 41,344,309 7,036,936 116,646,258 454,209 — 180,240,154 Segment profit/(loss) before income tax 3,496,381 (929,298) 26,020 779,451 (1,267,146) 198,103 2,303,511 Income tax expense (822,499) Profit for the year 1,481,012 Other items Finance income 100,125 54,458 15,744 136,513 185,392 — 492,232 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) (18,000) — — (107,537) Depreciation and amortization (excluding the amortization of land use rights) (2,846,051) (2,954,801) (1,962,081) (101,705) (82,962) — (7,947,600) Gain on disposal of property, plant and equipment and land use rights 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 Impairment of property, plant and equipment — — (7,450) — — — (7,450) 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) (84,807) (9,621) — (107,841) 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) Gain on previously held equity interest remeasured at 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. Corporate and other Primary operating Alumina aluminum Energy Trading segments Total As at December 31, 2017 Segment assets 69,810,387 51,736,716 40,113,747 18,586,406 48,264,166 228,511,422 Reconciliation: Elimination of inter-segment receivables (30,170,567) Other eliminations (194,763) Corporate and other unallocated assets: Deferred tax assets 1,606,150 Prepaid income tax 64,557 Total assets 199,816,799 Segment liabilities 33,037,329 29,552,176 27,368,026 13,067,384 60,012,851 163,037,766 Reconciliation: Elimination of inter-segment payables (30,170,567) Corporate and other unallocated liabilities: Deferred tax liabilities 993,742 Income tax payable 213,262 Total liabilities 134,074,203 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 20,129,355 33,577,526 233,555,059 Reconciliation: Elimination of inter-segment receivables (34,228,334) Other eliminations (155,283) Corporate and other unallocated assets: Deferred tax assets 1,542,569 Prepaid income tax 162,103 Total assets 200,876,114 Segment liabilities 38,817,030 34,492,538 27,265,031 14,442,010 50,492,049 165,508,658 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 133,206,912 |
Schedule of geographical information of the operating segments | Segment revenue from external customers — Mainland China 142,018,789 171,954,097 171,023,595 — Outside Mainland China 2,835,793 9,066,331 9,216,559 144,854,582 181,020,428 180,240,154 Non-current assets (excluding financial assets and deferred tax assets) — Mainland China 126,992,893 137,857,441 — Outside Mainland China 384,089 646,327 127,376,982 138,503,768 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Computer software, Mining Mineral production rights and exploration quota and Goodwill others rights others Total Year ended December 31, 2017 Opening net carrying amount 2,346,853 6,981,217 1,123,639 140,540 10,592,249 Additions — 280,340 — 4,827 285,167 Acquisition of a subsidiary — — — 188 188 Disposals — — — (11,168) (11,168) Disposal of subsidiaries — — — (562) (562) Amortization — (241,261) — (34,616) (275,877) Transfer from property, plant and equipment (note 6) — 53,565 — 22,614 76,179 Impairment losses — — — (8,134) (8,134) Currency translation differences (923) (7,433) (12,053) — (20,409) Closing net carrying amount 2,345,930 7,066,428 1,111,586 113,689 10,637,633 As at December 31, 2017 Cost 2,345,930 8,546,343 1,111,586 399,532 12,403,391 Accumulated amortization and impairment — (1,479,915) — (285,843) (1,765,758) Net carrying amount 2,345,930 7,066,428 1,111,586 113,689 10,637,633 Computer software, 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 |
Schedule of amortisation expenses of intangible assets recognized in profit or loss | Cost of sales 211,915 241,261 265,108 General and administrative expenses 32,446 34,616 30,793 244,361 275,877 295,901 |
Schedule of summary of goodwill allocated to each segment | December 31, December 31, 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“) 14,985 — 15,739 — Shanxi Huaxing — — 1,163,949 — 204,404 2,141,526 1,369,107 2,141,526 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 Opening net carrying amount 27,918,175 45,522,495 656,467 100,202 16,174,232 90,371,571 Reclassifications and internal transfers 5,334,951 9,722,364 9,064 11,439 (15,077,818) — Transfer to intangible assets (note 5) — — — — (76,179) (76,179) Transfer to land use rights (note 8) — — — — (396,398) (396,398) Transfer to investment properties (note 7) (157,150) — — — — (157,150) Additions 8,941 1,068,129 36,667 47,804 9,602,162 10,763,703 Acquisition of subsidiaries 889,597 2,600,315 3,410 1,714 99,934 3,594,970 Disposal of subsidiaries (86,945) (62,814) (5,269) (2,114) (108,479) (265,621) Disposals (37,678) (1,140,096) (13,084) (1,123) (334,329) (1,526,310) Government grants (3,585) (105,979) — - — (109,564) Depreciation (1,577,363) (4,803,886) (145,287) (28,239) — (6,554,775) Impairment losses (564) (15,636) — — — (16,200) Currency translation differences (156) (196) (60) (58) — (470) Closing net carrying amount 32,288,223 52,784,696 541,908 129,625 9,883,125 95,627,577 As at December 31, 2017 Cost 48,990,555 101,005,277 2,873,825 561,597 9,995,123 163,426,377 Accumulated depreciation and impairment (16,702,332) (48,220,581) (2,331,917) (431,972) (111,998) (67,798,800) Net carrying amount 32,288,223 52,784,696 541,908 129,625 9,883,125 95,627,577 Office Transportation and other Construction Buildings Machinery facilities equipment in progress Total Year ended December 31, 2018 Opening net carrying amount 32,288,223 52,784,696 541,908 129,625 9,883,125 95,627,577 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 land use rights (note 8) — — — — (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 8,025,615 10,335,155 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) — — (389) (7,450) Currency translation differences 99 146 34 27 — 306 Closing net carrying amount 38,849,351 53,695,930 509,595 158,232 12,980,261 106,193,369 As at December 31, 2018 Cost 56,620,994 103,608,492 2,538,835 603,593 13,092,648 176,464,562 Accumulated depreciation and impairment (17,771,643) (49,912,562) (2,029,240) (445,361) (112,387) (70,271,193) Net carrying amount 38,849,351 53,695,930 509,595 158,232 12,980,261 106,193,369 |
Schedule of depreciation expenses recognized in profit or loss | Cost of sales 6,399,010 6,387,773 7,291,380 General and administrative expenses 181,708 160,076 201,337 Selling and distribution expenses 9,530 6,926 6,605 6,590,248 6,554,775 7,499,322 |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENT PROPERTIES | |
Schedule of net carrying amount of investment properties | Buildings Land use right Total Year ended December 31, 2017 Opening net carrying amount 99,655 1,156,120 1,255,775 Transfer from property, plant and equipment and land use rights (note 6) (note 8) 157,150 6,896 164,046 Disposal — (73,346) (73,346) Depreciation (2,744) (11,361) (14,105) Closing net carrying amount 254,061 1,078,309 1,332,370 As at December 31, 2017 Cost 263,066 1,107,411 1,370,477 Accumulated depreciation (9,005) (29,102) (38,107) Net carrying amount 254,061 1,078,309 1,332,370 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 |
LAND USE RIGHTS AND LEASEHOLD_2
LAND USE RIGHTS AND LEASEHOLD LAND (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LAND USE RIGHTS AND LEASEHOLD LAND | |
Schedule of land use rights and leasehold land | December 31, December 31, Operating leases : In the mainland of the PRC, held on: Leases less than 10 years 127,516 768,153 Leases between 10 to 50 years 3,331,557 3,393,547 Leases over 50 years 117,939 118,591 3,577,012 4,280,291 Operating leases prepayments As at January 1 3,198,047 3,577,012 Additions 59,215 2,838 Acquisition of a subsidiary 31,833 460,638 Transfer from property, plant and equipment (note 6) 396,398 382,242 Disposals (6,712) — Government grants — (34,174) Disposal of subsidiaries (3,294) (728) Transfer to investment properties (6,896) — Amortization (91,579) (107,537) As at December 31 3,577,012 4,280,291 |
INVESTMENTS IN JOINT VENTURES_2
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Associates | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of movements in investments in joint ventures and associates | As at January 1 5,926,533 6,935,030 Capital injections 857,317 315,300 Deemed disposal of a subsidiary 100,092 — A subsidiary changed into an associate 240,258 — Associates changed into subsidiaries — (862,214) Disposal — (32,720) Share of profits and losses for the year (165,249) 39,335 Cash dividends declared (26,330) (36,157) Share of changes in reserves 2,409 4,888 As at December 31 6,935,030 6,363,462 |
Aggregate associates that are not individually material | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of summarized financial information | Share of the associates’ profits and losses (165,249) 39,335 Share of the associates’ total comprehensive income (165,249) 39,335 Aggregate carrying amount of the Group’s investments in the associates 6,935,030 6,363,462 |
Joint venture | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of movements in investments in joint ventures and associates | As at January 1 6,240,200 6,007,624 Capital injections 201,864 90,000 A joint venture changed into a subsidiary (note 38 (k)) (315,706) (2,048,780) A subsidiary changed into a joint venture 11,980 — Share of profits and losses for the year 8,151 (199,452) Share of changes in reserves (6,105) (2,837) Cash dividends declared (132,760) (236,253) Impairment — (216,953) As at December 31 6,007,624 3,393,349 |
Aggregate joint ventures not individually material | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |
Schedule of summarized financial information | Share of the joint ventures’ profits and losses for the year 8,151 (199,452) Share of the joint ventures’ total comprehensive income 8,151 (199,452) Aggregate carrying amount of the Group’s investments in joint ventures 6,007,624 3,393,349 |
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, 2018 | |
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 Stated at fair value Listed equity investments — 6,441 Unlisted investments (Note) — 1,723,384 — 1,729,825 Available-for-sale investments Non current portion Stated at fair value Listed equity investments 9,701 — Unlisted investments (Note) 1,848,000 — 1,857,701 — Stated at cost Unlisted equity investments 73,211 — Less: provision for impairment (2,711) — 70,500 — 1,928,201 1,729,825 |
DEFERRED TAX (Tables)
DEFERRED TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 553,716 207,651 636,197 169,113 120,830 1,687,507 (Charged)/credited to profit or loss (28,334) 59,664 (94,978) (3,070) 47,817 (18,901) Disposal of subsidiaries — (3,106) (1,320) — — (4,426) As at December 31, 2017 525,382 264,209 539,899 166,043 168,647 1,664,180 As at January 1, 2018 525,382 264,209 539,899 166,043 168,647 1,664,180 Acquisition of subsidiaries 360 — — — 7,734 8,094 (Charged)/credited to profit or loss (139,985) (21,839) 76,338 3,833 5,989 (75,664) As at December 31, 2018 385,757 242,370 616,237 169,876 182,370 1,596,610 Movements in deferred tax liabilities: Fair value Fair value adjustments arising Interest changes of Depreciation from acquisition of Investment Investment capitalisation financial assets and amortization subsidiaries in a subsidiary in an associate Total As at January 1, 2017 61,166 14,925 7,474 977,342 183,232 — 1,244,139 Exchange realignment — — — (1,830) — — (1,830) Credited to other comprehensive income — (11,180) — — — — (11,180) Acquisition of subsidiaries — — — 40,706 — — 40,706 (Credited)/charged to profit or loss (8,232) (1,414) 185 (27,370) (183,232) — (220,063) As at December 31, 2017 52,934 2,331 7,659 988,848 — — 1,051,772 Changes in accounting policies — 3,641 — — — — 3,641 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 |
Schedule of analysis of the deferred tax balances of the Group for financial reporting purposes | December 31, December 31, Net deferred tax assets 1,606,150 1,542,569 Net deferred tax liabilities 993,742 1,812,805 |
Schedule of the expiry profile of unprovided tax losses | December 31, December 31, Expiring in 2018 7,689,663 — 2019 7,650,084 6,753,096 2020 711,878 711,878 2021 975,081 975,081 2022 1,186,914 1,211,002 2023 — 1,736,412 18,213,620 11,387,469 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | December 31, December 31, Financial assets - Other long-term receivables 261,156 204,718 Prepayment for mining rights 801,657 808,736 Long-term prepaid expenses 484,536 667,772 Deferred losses for sale and leaseback transactions (Note) 1,234,376 1,164,782 Others 739,167 1,596,636 3,259,736 4,237,926 3,520,892 4,442,644 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, 2018 | |
Inventories | |
Schedule of inventories | December 31, December 31, Raw materials 7,619,265 8,362,697 Work-in-progress 8,193,656 8,684,506 Finished goods 4,417,202 3,280,641 Spare parts 731,621 879,794 Packaging materials and others 43,064 63,227 21,004,808 21,270,865 Less: provision for impairment of inventories (457,252) (811,197) 20,547,556 20,459,668 |
Inventories | |
Inventories | |
Schedule of movements in the provision for impairment of inventories | As at January 1 719,560 457,252 Provision for impairment of inventories 194,588 2,413,098 Reversal arising from increase in net realisable value (89,318) (165,510) Written off upon sales of inventories (259,564) (1,893,643) Disposal of subsidiaries (108,014) — As at December 31 457,252 811,197 |
TRADE AND NOTES RECEIVABLES (Ta
TRADE AND NOTES RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND NOTES RECEIVABLES | |
Schedule of trade and notes receivables | December 31, December 31, Trade receivables 4,832,177 5,865,311 Less: provision for impairment (546,102) (659,261) 4,286,075 5,206,050 Notes receivable 3,722,862 2,894,482 8,008,937 8,100,532 |
Schedule of ageing analysis of trade and notes receivables | December 31, December 31, Within 1 year 6,289,931 6,212,537 Between 1 and 2 years 516,359 906,302 Between 2 and 3 years 338,334 158,162 Over 3 years 1,410,415 1,482,792 8,555,039 8,759,793 Less: provision for impairment (546,102) (659,261) 8,008,937 8,100,532 |
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 1.69 Between 2 and 3 years 74 3 4.05 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 21.29 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 Individually assessed trade receivables 4,246,067 212,964 5,865,311 659,261 |
Schedule of ageing analysis of trade and notes receivables, past due but not impaired | December 31, Past due for 1 year 470,008 Past due for 1 to 2 years 298,008 Past due for over 2 years 781,832 1,549,848 Not past due 2,384,268 3,934,116 |
Schedule of ageing analysis of trade receivables relate to customers in difficult economic situation | December 31, Within 1 year 182,801 Between 1 and 2 years 46,351 Between 2 and 3 years 40,325 Over 3 years 628,584 898,061 Loss allowance for impairment (546,102) 351,959 |
Schedule of movements on the provision for impairment of trade and notes receivables | As at January 1 507,593 546,102 Effect of adoption of IFRS 9 — 112,407 At beginning of year 507,593 658,509 Impairment loss 47,953 64,544 Written off (15,341) (33,469) Reversal (7,206) (20,466) Others 13,103 (9,857) As at December 31 546,102 659,261 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER CURRENT ASSETS | |
Schedule of financial assets included in other current assets at amortized cost | As at December 31, 2018 Gross carrying amount Expected credit 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 |
Schedule of ageing analysis of financial assets not impaired financial assets included in other current assets | December 31, Past due for 1 year 1,214,515 Past due for 1 to 2 years 364,953 Past due for over 2 years 1,073,261 2,652,729 Not past due 3,695,813 6,348,542 |
Other current assets | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | December 31, December 31, Financial assets — Deposits paid to suppliers 756,748 317,946 — Dividends receivable 267,331 47,167 — Receivables from other revenue 575,650 693,039 — Entrusted loans and loans receivable from third parties 1,615,429 1,645,205 — Entrusted loans and loans receivable from related parties 2,459,883 1,297,892 — Receivables from disposal of Guizhou Branch's aluminum properties 1,320,488 1,881,513 — Interest receivables 144,473 40,936 — Recoverable reimbursement for freight charges 13,944 185,866 — Other financial assets 1,006,723 530,029 8,160,669 6,639,593 Less: provision for impairment (1,673,122) (1,764,068) 6,487,547 4,875,525 Receivable of governments grants — 58,455 Receivable of value-added tax refund 1,063 — Advances to employees 46,890 23,744 Deductible input value added tax receivables 2,411,495 2,187,202 Prepaid income tax 64,557 162,103 Prepayments to related parties for purchases 62,724 586,312 Prepayments to suppliers for purchases and others 890,958 963,870 Others 113,146 169,881 3,590,833 4,151,567 Less: provision for impairment (4,155) (4,139) 3,586,678 4,147,428 Total other current assets 10,074,225 9,022,953 |
Schedule of ageing analysis of financial assets included in other current assets | December 31, December 31, Within 1 year 2,582,172 1,114,811 Between 1 and 2 years 1,016,290 1,653,822 Between 2 and 3 years 1,689,050 449,003 Over 3 years 2,873,157 3,421,957 8,160,669 6,639,593 Less: provision for impairment (1,673,122) (1,764,068) 6,487,547 4,875,525 |
Schedule of movements in the provision for impairment of other current assets | As at January 1 1,672,316 1,677,277 Effect of adoption of IFRS 9 — 38,502 At beginning of year 1,672,316 1,715,779 Impairment loss 29,483 65,494 Write off (10,926) (6,117) Reversal (9,531) (1,731) Others (4,065) (5,218) As at December 31 1,677,277 1,768,207 |
CASH AND CASH EQUIVALENTS AND_2
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS | |
Schedule of cash and cash equivalents and restricted cash and time deposits | December 31, December 31, Restricted cash 2,168,192 2,165,288 Cash and cash equivalents 27,835,866 19,130,652 30,004,058 21,295,940 |
Schedule of cash and cash equivalents denominated in foreign currency | December 31, December 31, RMB 26,949,057 18,026,082 USD 3,045,228 3,256,625 HKD 7,029 8,321 EUR 56 371 AUD 2,688 2,552 IDR — 1,989 30,004,058 21,295,940 |
INTEREST BEARING LOANS AND BO_2
INTEREST BEARING LOANS AND BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 5,607,570 4,081,270 Bank and other loans (Note (a)) — Secured (Note (f)) 14,716,175 12,608,727 — Guaranteed (Note (e)) 3,191,277 3,040,400 — Unsecured 22,597,382 30,491,613 40,504,834 46,140,740 Medium-term notes and bonds and long-term bonds and private placement notes (Note (b)) — Unsecured 15,696,961 10,094,861 Total long-term loans and borrowings 61,809,365 60,316,871 Current portion of finance lease payables (note 20) (2,115,644) (2,328,358) Current portion of medium-term bonds and long-term bonds (12,492,378) (396,727) Current portion of long-term bank and other loans (6,911,640) (3,384,400) Non-current portion of long-term loans and borrowings 40,289,703 54,207,386 December 31, December 31, Short-term loans and borrowings Bank and other loans (Note (c)) — Secured (Note (f)) 1,362,000 1,220,680 — Guaranteed (Note (e)) 150,000 240,000 — Unsecured 29,529,442 37,835,512 31,041,442 39,296,192 Short-term bonds, unsecured (Note (d)) 3,601,573 500,000 Gold leasing arrangements (Note (g)) 6,818,393 1,607,905 Current portion of finance lease payables (note 20) 2,115,644 2,328,358 Current portion of medium-term notes 12,492,378 396,727 Current portion of long-term bank and other loans 6,911,640 3,384,400 Total short-term borrowings and current portion of long-term loans and borrowings 62,981,070 47,513,582 |
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 6,905,000 3,382,325 6,640 2,075 6,911,640 3,384,400 Between 1 and 2 years 5,171,738 7,375,557 2,277 2,399 5,174,015 7,377,956 Between 2 and 5 years 8,666,967 16,586,390 6,827 7,197 8,673,794 16,593,587 Over 5 years 19,736,283 18,777,275 9,102 7,522 19,745,385 18,784,797 40,479,988 46,121,547 24,846 19,193 40,504,834 46,140,740 |
Schedule of interest-bearing loans and borrowings in which the Group received guarantees | December 31, December 31, Guarantors Long-term loans Lanzhou Aluminum Factory*(蘭州鋁廠) (Note (i)) 4,000 — Ningxia Energy (Note (ii)) 1,020,400 892,400 Yinxing Energy (Note (ii)) 91,000 70,000 Baotou Aluminum Limited Company*(包头铝业有限公司) and Baotou Communications Investment Group Limited Company*(包头交通投资集团有限公司) (Note (iii)) 1,600,000 1,600,000 The Company and Hangzhou Jinjiang (Note (iv)) 475,877 246,000 Qingzhen Industrial Investment Co., Ltd.*(“Qingzhen Investment”) (清鎮市工業投資有限公司) (Note (v)) — 116,000 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 3,191,277 3,040,400 Short-term loans Ningxia Energy (Note (ii)) 70,000 — Chalco Shandong (Note (ii)) 80,000 — China Great Wall Aluminum Co., Ltd.*(“China Great Wall Aluminum”) (中國長城鋁業有限公司) (Note(i)) — 40,000 Hangzhou Jinjiang, Qingzhen Investment and Guizhou Investment — 200,000 150,000 240,000 Note: (i) The guarantor is a subsidiary of Chinalco. (ii) The guarantor is a subsidiary of the Group. (iii) The guarantors are a subsidiary of the Company and a third party respectively. (iv) The guarantors are the Company and a third party respectively. (v) The guarantor is a third party |
Medium-term notes and bonds and long-term bonds | |
INTEREST BEARING LOANS AND BORROWINGS | |
Schedule of interest bearing loans and borrowings | Effective December 31, December 31, Face value /maturity interest rate 2015 medium-term notes 3,000,000/2018 5.53 % 2,999,030 — 2015 medium-term notes 1,500,000/2018 5.01 % 1,496,503 — 2013 medium-term bonds 3,000,000/2018 5.99 % 2,999,211 — 2015 medium-term bonds 3,000,000/2018 6.11 % 2,999,359 — 2015 medium-term bonds 2,000,000/2018 6.08 % 1,998,275 — 2016 private placement notes 3,215,000/2019 5.12 % 3,204,583 396,727 2018 medium-term notes 2,000,000/2021 5.84 % — 1,986,418 2018 medium-term bonds 1,100,000/2021 4.66 % — 1,097,003 2018 medium-term bonds 900,000/2023 5.06 % — 897,820 2018 medium-term bonds 1,400,000/2021 4.30 % — 1,395,970 2018 medium-term bonds 1,600,000/2023 4.57 % — 1,595,311 2018 US dollar medium-term bonds 2,785,840/2021 5.25 % — 2,725,612 15,696,961 10,094,861 |
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 2017 short-term bonds 3,000,000/2018 4.30 % 3,101,573 — 2017 short-term bonds 500,000/2018 4.90 % 500,000 — 2018 Ningxia short-term bonds 500,000/2019 5.30 % — 500,000 3,601,573 500,000 |
FINANCE LEASE PAYABLES (Tables)
FINANCE LEASE PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCE LEASE PAYABLES | |
Schedule of future minimum lease payments under finance leases and their present values | Minimum lease payments Present value of minimum lease payments December 31, December 31, December 31, December 31, Amounts payable: Within one year 2,371,917 2,518,653 2,115,644 2,328,358 In the second year 1,762,618 1,161,490 1,606,571 1,075,050 In the third to fifth years, inclusive 1,890,329 707,716 1,817,506 After five years 73,603 13,238 67,849 Total minimum finance lease payments 6,098,467 4,401,097 5,607,570 4,081,270 Future finance charges (490,897) (319,827) Total net finance lease payables (note 19) 5,607,570 4,081,270 Portion classified as current liabilities (note 19) (2,115,644) (2,328,358) Non-current portion 3,491,926 1,752,912 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER NON-CURRENT LIABILITIES | |
Schedule of other non current liabilities | December 31, December 31, Financial liabilities -Long-term payables for mining rights 749,761 788,133 -Other financial liabilities 19,300 52,926 769,061 841,059 Obligations in relation to early retirement schemes (Note (i)) 900,924 777,305 Deferred government grants (Note (ii)) 373,447 314,045 Deferred gain relating to sales and leaseback agreements 176,774 240,661 Contract liabilities — 132,844 Provision for rehabilitation 113,672 121,033 Others 119,782 11,217 1,684,599 1,597,105 2,453,660 2,438,164 |
Schedule of obligations in relation to retirement benefits under the Group's early retirement schemes | As at January 1, 996,598 1,438,440 Provision made during the year (note 29) 767,632 447,660 Interest costs 17,618 62,801 Payment during the year (343,408) (655,060) As at December 31, 1,438,440 1,293,841 Non-current 900,924 777,305 Current (note 22) 537,516 516,536 1,438,440 1,293,841 |
OTHER PAYABLES AND ACCRUED LI_2
OTHER PAYABLES AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER PAYABLES AND ACCRUED LIABILITIES | |
Schedule of other payables and accrued liabilities | December 31, December 31, Financial liabilities -Payable for capital expenditures 6,283,484 5,694,632 -Accrued interest 827,367 396,286 -Payables withheld as guarantees and deposits 1,494,367 1,101,456 -Dividends payable by subsidiaries to non-controlling shareholders 223,942 543,207 -Consideration payable for investment projects 170,494 280,856 -Current portion of payables for mining rights 300,970 210,325 -Others 2,062,612 1,025,163 11,363,236 9,251,925 Sales and other deposits from customers (note 2.2(c)) 1,605,374 — Taxes other than income taxes payable (Note) 818,979 831,040 Accrued payroll and bonus 76,683 220,851 Staff welfare payables 262,077 391,824 Current portion of obligations in relation to early retirement schemes (note 21) 537,516 516,536 Contribution payable for pension insurance 27,248 30,145 Output value-added tax on pending — 252,691 Others 1,786 37,492 3,329,663 2,280,579 14,692,899 11,532,504 Note: 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, 2018 | |
TRADE AND NOTES PAYABLES | |
Schedule of trade and notes payables | December 31, December 31, Trade payables 7,767,482 8,568,438 Notes payable 4,592,959 5,439,162 12,360,441 14,007,600 |
Schedule of ageing analysis of trade and notes payables | December 31, December 31, Within 1 year 11,748,228 13,598,040 Between 1 and 2 years 199,889 140,517 Between 2 and 3 years 200,191 47,111 Over 3 years 212,133 221,932 12,360,441 14,007,600 |
PLEDGE OF ASSETS (Tables)
PLEDGE OF ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PLEDGE OF ASSETS | |
Summary of pledged assets | December 31, December 31, Property, plant and equipment (note 6) 5,799,013 4,168,239 Land use rights (note 8) 176,914 328,116 Intangible assets (note 5) 1,111,705 772,597 Notes receivable (note 14) 82,125 933,551 Trade receivables (note 14) 22,000 — Investments in associates — 535,610 7,191,757 6,738,113 |
PROFIT BEFORE INCOME TAX (Table
PROFIT BEFORE INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROFIT BEFORE INCOME TAX | |
Schedule of analysis of profit before income tax | Purchase of inventories in relation to trading activities 79,682,085 98,282,714 85,443,397 Raw materials and consumables used, and changes in work-in-progress and finished goods 27,209,597 34,550,042 43,197,855 Power and utilities 12,980,854 17,274,948 17,650,214 Depreciation and amortization 7,000,677 7,064,129 8,055,137 Employee benefit expenses (note 29) 5,899,257 6,975,281 7,433,027 Repairs and maintenance 1,354,394 1,716,940 1,750,194 Transportation expenses 1,532,920 1,768,604 1,893,659 Logistic cost 796,231 1,894,061 2,794,733 Taxes other than income tax expense (Note (i)) 690,718 858,344 936,546 Rental expenses for land use rights and buildings 511,189 497,356 649,640 Packaging expenses 236,465 267,547 261,626 Research and development expenses 168,862 498,234 626,873 Auditors’ remuneration expense (Note (ii)) 26,006 31,815 30,847 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, 2018, 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 RMB26.7 million (2016:RMB23.7 million, 2017: RMB23.1 million), and services provided by other auditors. |
OTHER GAINS, NET (Tables)
OTHER GAINS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER GAINS, NET | |
Schedule of other gains, net | Gain on deemed disposal and disposal of subsidiaries — 325,022 3,517 Gain on disposal and dividends of available for sales investments/equity investments designated at fair value through other comprehensive income 140,929 79,408 109,914 Realized gains/(losses) on futures, forward and option contracts, net (Note) (1,290,267) (23,951) 40,492 Unrealized gains/(losses) on futures, forward and option contracts, net (Note) 154,585 (131,073) 100,967 Gain on disposal of property, plant and equipment and land use rights, net 816,721 76,739 101,098 Gain on previously held equity interests remeasured at acquisition-date fair value (note 38(h), 38 (i), 38 (j) and 38 (k)) — 117,640 748,086 Loss on disposal of investments in an associate 128,833 — (1,904) Others 218,342 (124,403) (180,266) 169,143 319,382 921,904 Note: None of these futures, forward and option contracts was designated for hedge accounting . |
FINANCE INCOME_FINANCE COSTS (T
FINANCE INCOME/FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCE INCOME/FINANCE COSTS | |
Schedule of analysis of finance income/finance costs | Finance income - interest income (815,729) (706,690) (492,232) Interest expense 5,169,568 5,175,156 5,202,639 Less: interest expense capitalized in property, plant and equipment (note 6) (414,133) (344,452) (517,589) Interest expense, net of capitalized interest 4,755,435 4,830,704 4,685,050 Amortization of unrecognized finance expenses 324,701 241,099 205,335 Exchange (gain)/loss, net (60,228) 131,621 (7,889) Finance costs 5,019,908 5,203,424 4,882,496 Capitalization rate during the year (note 6) 3.85% to 6.00% 4.41% to 8.00% 4.54% to 7.00% |
EMPLOYEE BENEFIT EXPENSES (Tabl
EMPLOYEE BENEFIT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
EMPLOYEE BENEFIT EXPENSES | |
Schedule of analysis of employee benefit expenses | Salaries and bonus 3,854,571 4,205,361 4,636,972 Housing fund 388,017 395,489 414,440 Staff welfare and other expenses (Note) 1,495,618 1,576,552 1,896,365 Employment expense in relation to early retirement schemes (note 21) 132,044 767,632 447,660 Employment expenses in relation to termination benefit 29,007 30,247 37,590 5,899,257 6,975,281 7,433,027 Note: 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, 2018 | |
Significant related party transactions | |
Schedule of directors' and supervisors' remuneration | Fees 762 768 756 Basic salaries, housing fund, other allowances and benefits in kind 975 1,370 1,849 Pension cost 114 166 234 1,851 2,304 2,839 |
Schedule of remuneration of each director and supervisor | The remuneration of each director and supervisor of the Company for the year ended December 31, 2016 is set out below: Discretionary Names of directors and supervisors Fees Salaries bonuses Pension costs total Executive Directors: Ge Honglin — — — — — Ao Hong — — — — — Lu Dongliang — — — — — Jiang Yinggang — 725 — 76 801 — 725 — 76 801 Non-executive Directors: Yu Dehui — — — — — Liu Caiming — — — — — Wang Jun 150 — — — 150 Lie-A-Cheong Tai-Chong, David 204 — — — 204 Chen Lijie 204 — — — 204 Hu Shihai 204 — — — 204 762 — — — 762 Supervisors: Liu Xiangmin — — — — — Yuan Li — — — — — Wang Jun — — — — — Wu Zuoming 250 — 38 288 Zhao Zhao — — — — — 250 — 38 288 Total 762 975 — 114 1,851 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 (iii)) — — — — — Jiang Yinggang — 762 — 90 852 Zhu Runzhou — 438 — 54 492 — 1,200 — 144 1,344 Non-executive Directors: Ao Hong (Note ii)) — — — — — Wang Jun (Note (ii)) 150 — — — 150 Chen Lijie 202 — — — 202 Lie-A-Cheong Tai-Chong, David 202 — — — 202 Hu Shihai 202 — — — 202 756 — — — 756 Supervisors: Ye Guohua — — — — — Wang Jun — — — — — Wu Zuoming — 649 — 90 739 — 649 — 90 739 Total 756 1,849 — 234 2,839 Note: (i) . (ii) |
Schedule of remuneration payable to the remaining two highest paid individuals | Basic salaries, housing fund, other allowances and benefits in kind 1,450 2,460 1,305 Discretionary bonuses — — — Pension costs 152 249 165 1,602 2,709 1,470 |
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 15 12 |
Directors and supervisors | |
Significant related party transactions | |
Schedule of remuneration of the directors and supervisors of the Company whose remuneration fell within the following band | Number of employees Nil to RMB1,000,000 2 3 2 |
INCOME TAX BENEFIT_(EXPENSE) (T
INCOME TAX BENEFIT/(EXPENSE) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAX BENEFIT/(EXPENSE) | |
Schedule of income tax benefit/(expense) | Current income tax expense: — PRC corporate income tax 503,233 844,896 755,215 Deferred tax (benefit)/expense (99,334) (201,162) 67,284 403,899 643,734 822,499 |
Schedule of reconciliation of the tax expense applicable to profit before tax at the statutory rates | Profit before income tax 1,620,689 3,049,010 2,303,511 Tax expense calculated at the statutory tax rate of 25% (2016 and 2017: 25%) 405,172 762,253 575,878 Tax effects of: Preferential income tax rates applicable to certain branches and subsidiaries (3,322) (287,081) (268,665) Impact of change in income tax rate 5,945 98,150 23,425 Tax losses with no deferred tax assets recognized 269,173 296,728 434,103 Deductible temporary differences with no deferred tax assets recognized 78,644 308,657 382,503 Utilisation of previously unrecognized tax losses and deductible temporary differences (203,423) (212,240) (52,962) Tax incentive in relation to deduction of certain expenses (3,769) (43,846) (62,172) Non-taxable income (89,602) (126,101) (254,337) Expenses not deductible for tax purposes 83,966 10,290 46,758 Write-off of unrecoverable deferred tax assets previously recognized 3,315 49,808 183,195 Return on equity investment measured by the equity method (4,896) 39,274 40,029 Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized (117,513) (274,726) (233,940) True-up adjustments in respect of prior year’s annual income tax filings and others (19,791) 22,568 8,684 Income tax expense 403,899 643,734 822,499 Effective tax rate 25 % 21 % 36 % |
EARNINGS PER SHARE ATTRIBUTAB_2
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 365,697,352 1,413,028,383 746,477,441 Other equity instruments’ distribution reserved (RMB) (110,000,000) (110,000,000) (129,282,192) 255,697,352 1,303,028,383 617,195,249 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 (Note 18(b)) — — 1,938,915,502 14,903,798,236 14,903,798,236 16,842,713,738 Basic earnings per share (RMB) 0.017 0.087 0.037 |
NOTES TO THE CONSOLIDATED STA_2
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 1,620,689 3,049,010 2,303,511 Adjustments for: Share of profits and losses of joint ventures 9(a) 95,508 (8,151) 199,452 Share of profits and losses of associates 9(b) (115,091) 165,249 (39,335) Depreciation of property, plant and equipment 6 6,590,248 6,554,775 7,499,322 Depreciation of investment properties 7 1,426 14,105 22,229 Gain on disposal of other property, plant and equipment and land use rights, net 27 (245,451) (76,739) (101,098) Gain on disposal of Environmental Protection Assets (571,270) — — Impairment losses on property, plant and equipment 6 57,080 16,200 7,450 Impairment losses of intangible assets 5 — 8,134 — Amortization of intangible assets 5 244,361 275,877 295,629 Amortization of land use rights 8 99,724 91,579 107,809 Amortization of prepaid expenses included in other non-current assets 64,918 127,793 130,148 Realized and unrealized losses/(gains) on futures, option and forward contracts 27 1,135,682 155,024 (141,459) 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) Loss on disposal of investments in associates 27 (128,833) — 1,904 Gain on disposal of and dividends from equity investments 27 (140,929) (79,408) (109,914) Receipt of government subsidies (207,146) (202,359) (158,109) Interest income (353,619) (183,015) — Finance costs 28 5,019,908 5,203,422 4,882,496 Change in special reserve 9,839 58,743 6,605 Others 55 (16,950) 75,380 13,177,099 14,710,627 14,230,417 Changes in working capital: Decrease/(increase) in inventories 2,398,030 (2,662,507) 1,194,454 Increase in trade and notes receivables (3,655,735) (1,961,968) (2,486,201) Decrease in other current assets 3,463,799 1,275,535 916,681 (Increase)/decrease in restricted cash (264,508) (137,745) 530,284 (Increase)/decrease in other non-current assets (132,203) (422,845) 425,768 (Decrease)/increase in trade and notes payables (3,405,737) 1,599,294 (5,660) Increase/(decrease) in other payables and accrued liabilities 73,357 1,672,658 (945,270) Increase in other non-current liabilities 11,105 81,878 105,386 Cash generated from operations 11,665,207 14,154,927 13,965,859 PRC corporate income taxes paid (55,898) (949,355) (947,683) Net cash generated from operating activities 11,609,309 13,205,572 13,018,176 Non-cash transactions of investing activities and financing activities Capital injection to an associate and joint ventures by non-cash assets 371,051 186,450 — Equity exchange arrangement (note 18(b)) — — 10,735,214 Endorsement of notes receivables accepted from the sale of goods or services for purchase of property, plant and equipment 1,568,488 2,384,046 Acquisition of businesses at non-cash consideration — 50,058 70,087 Finance lease — 44,342 113,305 |
Schedule of reconciliation of liabilities arising from financing activities | Financial Financial liabilities Liabilities Financial included in other included in liabilities at fair current payables other non- Interest bearing value through Trade and and accrued current loans and profit or loss notes payables expenses liabilities borrowings Total As at January 1, 2017 3,575 11,532,163 9,793,534 789,720 105,968,641 128,087,633 Net cash generated from operating activities — 1,361,087 1,253,220 — — 2,614,307 Net cash flows from/(used in) investing activities 85,851 (530,457) 640,157 (73,701) 2,400,464 2,522,314 Payment of upfront interest of gold leasing arrangement — — — — 7,804,083 7,804,083 Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs — — — — 3,478,550 3,478,550 Repayments of medium-term notes and short-term bonds — — — — (16,300,000) (16,300,000) Repayments of gold leasing arrangement — — — — (4,000,000) (4,000,000) Drawdown of short-term and long-term bank and other loans — — — — 83,758,749 83,758,749 Repayments of short-term and long-term bank and other loans — — — — (78,866,459) (78,866,459) Proceeds from finance lease, net of deposit and transaction costs — — — — 1,000,036 1,000,036 Capital elements of finance lease rental payment — — — — (2,462,250) (2,462,250) Dividends paid by subsidiaries to non-controlling shareholders — — 2,446 — — 2,446 Amortization of unrecognized finance expenses and interest expense — — — 16,352 398,371 414,723 Interest paid — — (278,084) — — (278,084) Reclassification — — (36,690) 36,690 — — Net cash (used in)/ generated from financing activities — — (312,328) 53,042 (5,188,920) (5,448,206) Net foreign exchange differences — (2,352) (11,347) — 90,588 76,889 As at December 31, 2017 89,426 12,360,441 11,363,236 769,061 103,270,773 127,852,937 Financial Financial liabilities liabilities Financial included in other included in liabilities at fair current payables other non- Interest bearing value through Trade and 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 — (5,660) (669,353) — — (675,013) Net cash flows from/(used in) investing activities (87,660) 1,646,299 (193,345) — 7,197,213 8,562,507 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) — (69,546,537) (70,546,537) 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 — — (449,835) (24,736) (85,579) (560,150) Reclassification — — (90,644) 90,644 — — Net cash (used in)/ generated from financing activities — — (1,262,708) 71,998 (8,747,935) (9,938,645) Net foreign exchange differences — 6,520 14,095 — 917 21,532 As at December 31, 2018 1,766 14,007,600 9,251,925 841,059 101,720,968 125,823,318 |
SIGNIFICANT RELATED PARTY BAL_2
SIGNIFICANT RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 10,319,958 10,658,507 11,248,625 Associates of Chinalco 688,308 682,992 897,642 Joint ventures 648,145 2,031,159 4,462,670 Associates 605,449 724,658 2,626,780 12,261,860 14,097,316 19,235,717 Provision of engineering, construction and supervisory services to: (iii) Chinalco and its subsidiaries (ix) 101,323 77,095 5,981 Joint ventures 41,423 2,046 — Associates — — 1,725 142,746 79,141 7,706 Provision of utility services to: (ii) Chinalco and its subsidiaries (ix) 567,628 581,566 620,552 Associates of Chinalco 4,444 8,776 15,719 Joint ventures 3,031 118,280 186,672 Associates 584 1,122 24,309 575,687 709,744 847,252 Rental revenue of land use rights and buildings from: (vi) Chinalco and its subsidiaries (ix) 33,231 40,875 31,551 Joint ventures — 426 1,545 Associates — 1,511 33,231 41,301 34,607 Purchases of goods and services: Purchases of engineering, construction and supervisory services from: (iii) Chinalco and its subsidiaries (ix) 1,529,453 1,071,283 2,088,338 Joint ventures — — 2,100 Associates — 134,072 405,993 1,529,453 1,205,355 2,496,431 Purchases of key and auxiliary materials, equipment and finished goods from: (iv) Chinalco and its subsidiaries (ix) 1,660,529 3,850,073 3,513,420 Associates of Chinalco — 18,917 Joint ventures 3,799,116 6,516,087 8,182,251 Associates 31,413 1,175 2,108,072 5,491,058 10,367,335 13,822,660 Provision of social services and logistics services by: (v) Chinalco and its subsidiaries (ix) 307,354 326,830 312,062 Provision of utility services by: (ii) Chinalco and its subsidiaries (ix) 686,474 1,412,722 992,827 Associates of Chinalco — — 96,510 Joint ventures 3,386 19,537 26,269 Associates — — 77,432 689,860 1,432,259 1,193,038 Notes Purchases of goods and services: (continued) Provision of other services by: A joint venture 151,552 269,204 226,280 Rental expenses for buildings and land use rights charged by: (vi) Chinalco and its subsidiaries (ix) 511,001 509,848 501,866 Joint ventures 126 — — 511,127 509,848 501,866 Other significant related party transactions: Borrowing from a subsidiary of Chinalco (viii), (ix) 5,145,959 4,010,000 6,525,000 Interest expense on borrowings, discounted notes and factoring arrangement from subsidiaries of Chinalco 226,118 225,934 143,415 Entrusted loans and other borrowings to: Joint ventures 212,400 500,000 — Associates — 1,100,000 — 212,400 1,600,000 — Interest income on entrusted loans and other borrowings: Joint ventures 31,373 41,005 — An associate — 24,425 — 31,373 65,430 — Interest income from the unpaid disposal proceeds from: Chinalco and its subsidiaries 246,149 117,587 — Disposal of assets under a sale and leaseback contract to a subsidiary of Chinalco (xi) 1,040,000 600,000 224,000 Finance lease under a sale and leaseback contract from a subsidiary of Chinalco (xi), (ix) 1,040,036 600,036 224,000 Trade receivable factoring arrangement from a subsidiary of Chinalco (ix) — 1,570,000 470,101 Discounted notes receivable to a subsidiary of Chinalco (viii) 40,200 523,253 756,000 Provision of financial guarantees to: A joint venture (x) 24,245 18,350 12,450 Financial guarantees provided by: Subsidiaries of Chinalco 23,000 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 summarised below: 1. 2. 3. 4. (ii) Utility services, including electricity, gas, heat and water, are provided at the state-prescribed price. (iii) Engineering, project construction and supervisory services were provided for construction projects. The state-guidance price or prevailing market price (including the tender price where by way of tender) is adopted for pricing purposes. (iv) The pricing policy for purchases of 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) The pricing policy for product processing services is the same as that set out in (i) above. (viii) Chinalco Finance Company Limited (“Chinalco Finance”)* ( 中鋁財務有限責任公司 ), a wholly-owned subsidiary of Chinalco and a non-bank financial institution established in the PRC, provides deposit services, credit services and miscellaneous financial services to the Group. The terms for the provision of financial services to the Group are no less favourable than those of the same type of financial services provided by Chinalco Finance to Chinalco and other members of its group or those of the same type of financial services that may be provided to the Group by other financial institutions. (ix) These related party transactions also constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Listing Rules. (x) 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, 2018, the outstanding amount of the guarantee was RMB12 million. (xi) As disclosed in note 20, the Group has entered into several sales and leaseback contracts with CFL. (xii) As disclosed in note 38 (n) and 38 (o), the Group acquired 57.69% and 19.96% equity interest in Chibi Great Wall Carbon from China Great Wall Aluminum and Henan Great Wall Zhongxin Industrial Co., Ltd. (“Henan Great Wall Zhongxin”) ( 河南長城眾鑫實業股份有限公司 ) respectively; and acquired 51% equity interest in East Light Logistics from Northeast Light Alloy Co., Ltd. (“Northeast Light Alloy”) ( 東北輕合金有限公司 ); which constituted related party transactions. (xiii) As disclosed in note 38(l) and 38 (m), the Group acquired Shandong Aluminum Plant ( 山東鋁廠碳素廠 ) and Pingguo Aluminum Plant ( 平果鋁業碳素廠 ) from Pingguo Aluminum and Shandong Aluminum, which also constituted related party transactions. |
Summary of outstanding balances with related entities | December 31, 2017 December 31, 2018 Cash and cash equivalents deposited with A subsidiary of Chinalco (Note) 7,679,806 9,101,541 Trade and notes receivables Chinalco and its subsidiaries 1,483,984 1,278,715 Associates of Chinalco 2,000 18,655 Joint ventures 591,488 819,878 Associates 96,574 6,615 2,174,046 2,123,863 Provision for impairment of receivables (78,388) (77,657) 2,095,658 2,046,206 Note: 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 623,254 830,615 Joint ventures 1,737,644 1,424,678 Associates 1,132,138 29,701 3,493,036 2,284,994 Provision for impairment of other current assets (48,166) (40,830) 3,444,870 2,244,164 Other non-current assets A joint venture 97,103 — Associates 111,845 111,845 208,948 111,845 Borrowings and finance lease payables Subsidiaries of Chinalco 3,329,807 4,373,033 A joint venture 190,000 — 3,519,807 4,373,033 Trade and notes payables Chinalco and its subsidiaries 332,701 404,278 Joint ventures 413,533 631,570 Associates 7,222 13,033 Associates of Chinalco — 4,012 753,456 1,052,893 December 31, December 31, Other payables and accrued liabilities Chinalco and its subsidiaries 2,652,249 1,887,010 Associates of Chinalco 5,030 17,128 Associates 218,560 148,978 Joint ventures 101,828 8,860 2,977,667 2,061,976 December 31, December 31, Contract Liabilities Chinalco and its subsidiaries — 22,307 Associates of Chinalco — 20 Associates — 12,451 Joint ventures — 94,367 — 129,145 |
Summary of compensation of key management personnel | Fees 762 768 756 Basic salaries, housing fund, other allowances and benefits in kind 2,542 3,830 3,953 Pension costs 277 415 482 3,581 5,013 5,191 |
FINANCIAL AND CAPITAL RISK MA_2
FINANCIAL AND CAPITAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of carrying amounts of each of the categories of financial instruments of the Group | Financial assets December 31, 2017 Financial assets Available- at fair value for-sale through profit or Loans and financial loss receivables investments Total Current Trade and notes receivables — 8,008,937 — 8,008,937 Financial assets at fair value through profit or loss 9,534 — — 9,534 Restricted cash — 2,168,192 — 2,168,192 Cash and cash equivalents — 27,835,866 — 27,835,866 Financial assets included in other current assets — 6,487,547 — 6,487,547 Subtotal 9,534 44,500,542 — 44,510,076 Non-current Available-for-sale financial investments — — 1,928,201 1,928,201 Financial assets included in other non-current assets — 261,156 — 261,156 Subtotal — 261,156 1,928,201 2,189,357 Total 9,534 44,761,698 1,928,201 46,699,433 Financial liabilities December 31, 2017 Financial liabilities at fair Financial value through liabilities at profit or loss amortized cost Total Current Financial liabilities at fair value through profit or loss 89,426 — 89,426 Interest-bearing loans and borrowings — 62,981,070 62,981,070 Financial liabilities included in other payables and accrued liabilities — 11,363,236 11,363,236 Trade and notes payables — 12,360,441 12,360,441 Subtotal 89,426 86,704,747 86,794,173 Non-current Financial liabilities included in other non-current liabilities — 769,061 769,061 Interest-bearing loans and borrowings — 40,289,703 40,289,703 Subtotal — 41,058,764 41,058,764 Total 89,426 127,763,511 127,852,937 Financial assets December 31, 2018 Equity investments designated at fair value Financial assets at fair Financial through other value through profit or assets at comprehensive loss amortized cost income Total Designated as such upon initial Held for recognition trading Current Trade and notes receivables — — 8,100,532 — 8,100,532 Financial assets at fair value through profit or loss — 16,141 — — 16,141 Restricted cash — — 2,165,288 — 2,165,288 Cash and cash equivalents — — 19,130,652 — 19,130,652 Financial assets included in other current assets — — 4,875,525 — 4,875,525 Subtotal — 16,141 34,271,997 — 34,288,138 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 34,476,715 1,729,825 36,222,681 Financial liabilities December 31, 2018 Financial liabilities at fair Financial value through profit or liabilities at loss amortized cost Total Designated as such upon initial Held for recognition trading Current Financial liabilities at fair value through profit or loss — 1,766 — 1,766 Interest-bearing loans and borrowings — — 47,513,582 47,513,582 Financial liabilities included in other payables and accrued liabilities (note 22) — — 9,251,925 9,251,925 Trade and notes payables — — 14,007,600 14,007,600 Subtotal — 1,766 70,773,107 70,774,873 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 — 1,766 125,821,552 125,823,318 |
Schedule of increase (decrease) due to commodity price risk impact on profit | 12-month ECLs Lifetime ECLs Stage 1 Stage 2 Stage 3 Simplified Total Trade receivables* — — — 5,206,050 5,206,050 Financial assets in other current assets* 1,098,455 3,655,638 121,432 — 4,875,525 Notes receivable 2,894,482 — — — 2,894,482 Restricted cash 2,165,288 — — — 2,165,288 Cash and cash equivalents 19,130,652 — — — 19,130,652 Financial assets in other non-current assets 204,718 — — — 204,718 Financial guarantees -not yet past due 12,450 — — — 12,450 25,506,045 3,655,638 121,432 5,206,050 34,489,165 |
Schedule of carrying amounts and fair values of the Group's financial instruments | Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial assets Other non-current assets (note 12) 261,156 204,718 242,567 182,132 261,156 204,718 242,567 182,132 Carrying amounts Fair values December 31, December 31, December 31, December 31, Financial liabilities Financial liabilities included in other non-current liabilities (note 21) 769,061 841,059 660,688 816,529 Long-term interest-bearing loans and borrowings (note 19) 40,289,703 54,207,386 39,475,392 53,207,052 41,058,764 55,048,445 40,136,080 54,023,581 |
Schedule of fair value measurement hierarchy | Assets measured at fair value As at December 31, 2017 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 9,534 — — 9,534 Available-for-sale financial investments: Listed equity investments 9,701 — — 9,701 Other unlisted investment — — 1,848,000 1,848,000 19,235 — 1,848,000 1,867,235 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 Liabilities measured at fair value As at December 31, 2017 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 89,426 — — 89,426 89,426 — — 89,426 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 Assets for which fair values are disclosed As at December 31, 2017 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 — 242,567 — 242,567 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 assets at amortized cost: Financial assets included in other non-current assets — 182,132 — 182,132 Liabilities for which fair values are disclosed As at December 31, 2017 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 — 660,688 — 660,688 Long-term interest-bearing loans and borrowings — 39,475,392 — 39,475,392 — 40,136,080 — 40,136,080 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 |
Summary of significant unobservable inputs to the valuation of financial instruments | Significant Valuation Technique unobservable input Range Equity investments in Size Industry Investment Fund 31 December 2018 Net Assets Method Net Assets 5,000,000 31 December 2017 Net Assets Method Net Assets 5,600,000 |
Schedule of the gearing ratio | December 31, December 31, Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) 132,493,752 130,966,279 Less: restricted cash, time deposits and cash and cash equivalents (30,004,058) (21,295,940) Net debt 102,489,694 109,670,339 Total equity 65,742,596 67,669,202 Add: net debt 102,489,694 109,670,339 Less: non-controlling interests (26,054,567) (15,254,312) Total capital attributable to owners of the parent 142,177,723 162,085,229 Gearing ratio 72 % 68 % |
Commodity price risk | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |
Schedule of if the futures prices had increased/decreased | Primary aluminum Decrease/increase Decrease/increase Copper Increase/decrease Increase/decrease Zinc Decrease/increase Decrease/increase Coal Decrease/increase RMB0.2 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, 2017 Finance lease payables, including current portion 2,371,917 1,762,618 1,890,329 73,603 6,098,467 Long-term bank and other loans, including current portion 6,911,640 5,174,015 8,673,794 19,745,385 40,504,834 Medium-term notes and bonds, including current portion 12,500,000 3,215,000 — — 15,715,000 Short-term bonds 3,500,000 — — — 3,500,000 Gold leasing arrangement 6,818,393 — — — 6,818,393 Short-term bank and other loans 31,041,442 — — — 31,041,442 Interest payables for borrowings 5,502,360 2,123,149 4,106,037 1,048,728 12,780,274 Financial liabilities at fair value through profit or loss 89,426 — — — 89,426 Financial liabilities included in other payables and accrued liabilities, excluding accrued interest 10,535,869 — — — 10,535,869 Financial liabilities included in other non-current liabilities (Note) — 107,785 108,896 587,668 804,349 Trade and notes payables 12,360,441 — — — 12,360,441 91,631,488 12,382,567 14,779,056 21,455,384 140,248,495 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 39,296,192 — — — 39,296,192 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 8,855,639 — — — 8,855,639 Financial liabilities included in other non-current liabilities (note) — 108,896 333,354 420,258 862,508 Trade and notes payables 14,007,600 — — — 14,007,600 75,421,123 11,251,093 31,617,861 20,117,079 138,407,156 Note : As disclosed in note 21, as at December 31, 2018, the carrying value of financial liabilities included in other non-current liabilities was RMB841 million (December 31, 2017: RMB769 million). |
PARTLY-OWNED SUBSIDIARIES WIT_2
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 % Guizhou Huajin 40.00 % 40.00 % Guizhou Huaren N/A 60.00 % Inner Mongolia Huayun new material Co.,Ltd (“Huayun”) (Note) 50.00 % 50.00 % Profit/(loss) for the year allocated to non-controlling interests Ningxia Energy (5,670) 214,479 Guizhou Huajin 410,023 291,009 Guizhou Huaren N/A 20,783 Huayun 72,903 186,945 Dividends distributed to non-controlling interests Ningxia Energy 3,264 351,979 Guizhou Huajin — 200,000 Guizhou Huaren — — Huayun — — Accumulated balances of non-controlling interests at the reporting dates Ningxia Energy 4,914,902 4,757,014 Guizhou Huajin 782,176 Guizhou Huaren N/A Huayun |
Ningxia Energy | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | 2017 Ningxia Energy Revenue 5,624,059 Total expenses 5,691,240 Loss for the year (67,181) Total comprehensive income for the year (67,181) Current assets 4,538,735 Non-current assets 33,716,269 Current liabilities 7,944,491 Non-current liabilities 19,488,716 Net cash flows from operating activities 2,110,801 Net cash flows used in investing activities (3,933,743) Net cash flows from financing activities 1,350,275 Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (472,667) 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 |
Guizhou Huajin | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | 2017 Guizhou Huajin Revenue 4,123,352 Total expenses 3,098,295 Profit for the year 1,025,057 Total comprehensive income for the year 1,025,057 Current assets 1,820,262 Non-current assets 2,841,975 Current liabilities 1,958,230 Non-current liabilities 965,880 Net cash flows from operating activities 1,162,069 Net cash flows used in investing activities (7,437,104) Net cash flows used in financing activities (1,835,878) Effect of foreign exchange rate changes, net (221,567) Net increase in cash and cash equivalents (8,332,480) 2018 Guizhou Huajin Revenue 4,018,682 Total expenses 3,291,160 Profit for the year 727,522 Total comprehensive income for the year 727,522 Current assets 1,495,922 Non-current assets 2,752,815 Current liabilities 1,875,227 Non-current liabilities 418,070 Net cash flows from operating activities 1,104,759 Net cash flows used in investing activities (75,066) Net cash flows used in financing activities (1,075,311) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (45,618) |
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 used in financing activities (115,222) Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (490,684) |
Huayun | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |
Summarized financial information of subsidiaries | 2017 Huayun Revenue 3,085,361 Total expenses 2,939,556 Profit for the year 145,805 Total comprehensive income for the year 145,805 Current assets 2,151,021 Non-current assets 7,549,859 Current liabilities 3,525,808 Non-current liabilities 4,122,238 Net cash flows from operating activities 263,559 Net cash flows used in investing activities (4,408,396) Net cash flows used in financing activities 4,308,874 Effect of foreign exchange rate changes, net — Net increase in cash and cash equivalents 164,037 2018 Huayun Revenue 8,099,579 Total expenses 7,725,689 Profit for the year 373,890 Total comprehensive income for the year 373,890 Current assets 2,372,120 Non-current assets 8,338,220 Current liabilities 4,342,807 Non-current liabilities 3,947,839 Net cash flows from operating activities 1,448,853 Net cash flows used in investing activities (2,097,536) Net cash flows used in financing activities 614,418 Effect of foreign exchange rate changes, net — Net decrease in cash and cash equivalents (34,265) |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Bayer aluminum production line | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, January 1, Assets Property, plant and equipment 328,354 328,354 Liabilities Other payables and accrued expenses 1,488 1,488 Net assets 326,866 326,866 Difference recognized in equity — 11,418 338,284 Cash 161,962 Carrying values of assets disposed of 176,322 Total purchase consideration 338,284 |
Pseudoboehmite and activated silicon powder production lines | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, July 5, Assets Property, plant and equipment 29,966 28,860 Liabilities Other payables and accrued expenses 2,503 — Net assets 27,463 28,860 Difference recognized in equity 14,201 43,061 Cash 43,061 Total purchase consideration 43,061 |
Chinalco Shanghai | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, September 9, Assets Property, plant and equipment 414,766 494,725 Land use rights 742,771 731,967 Inventories 22 15 Other current assets 916 1,425 Restricted cash and time deposits 51,500 70,500 Cash and cash equivalents 1,156 2,164 Liabilities Interest bearing loans and borrowings 241,118 330,549 Trade and notes payables 147 29 Other payables and accrued expenses 1,598 1,951 Net assets 968,268 968,267 Non-controlling interests 387,307 Net assets acquired 580,960 Difference recognized in equity 1,532,801 2,113,761 Satisfied by cash 2,113,761 Total purchase consideration 2,113,761 |
Xinghua Technology | |
BUSINESS COMBINATION | |
Schedule of values of the assets and liabilities at the acquisition date | December 31, December 23, Assets Property, plant and equipment 978,596 1,134,185 Land use rights — 8,339 Other non-current assets 1,474 8,334 Trade and notes receivables 2,423 5,471 Inventories 164,262 170,986 Other current assets 89,626 86,283 Restricted cash and time deposits 15,000 184,060 Cash and cash equivalents 1,910 19,828 Liabilities Interest bearing loans and borrowings (non-current) 34,086 14,909 Other non-current liabilities 47,900 43,921 Interest bearing loans and borrowings (current) 338,393 354,181 Trade and notes payables 230,235 484,755 Other payables and accrued expenses 329,184 398,239 Income tax payable — 9,919 Net assets 273,493 311,562 Non-controlling interests 105,931 Net assets acquired 205,631 Difference recognized in equity 309,890 515,521 Satisfied by cash 515,521 Total purchase consideration 515,521 |
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 Co., Ltd | |
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) | 12 Months Ended |
Dec. 31, 2018 | |
Environmental Protection Business | |
DISPOSAL OF BUSINESSES | |
Schedule of the details of the net assets disposed of | June 30, 2016 Net assets disposed of: Property, plant and equipment 1,187,802 Trade and notes payables (2,042) Accruals and other payables (2,665) 1,183,095 Gain on disposal of the Environmental Protection Business 571,270 Cash consideration 1,754,365 |
Shandong Engineering | |
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, 2018 | |
COMMITMENTS | |
Schedule of capital commitments on property, plant and equipment | December 31, December 31, Contracted, but not provided for 2,967,541 3,942,933 |
Schedule of commitments under operating leases | December 31, December 31, Within one year 658,574 541,541 In the second to fifth years, inclusive 2,112,800 1,880,058 After five years 12,544,108 10,567,925 15,315,482 12,989,524 |
Schedule of commitments to make capital contributions to the Group's joint ventures and associates | December 31, December 31, Associates 374,800 82,800 Joint ventures — 460,000 374,800 542,800 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2015CNY (¥) | Dec. 31, 2018HKD ($) | Dec. 31, 2018CNY (¥) | |
GENERAL INFORMATION | |||
Registered capital | ¥ 800,000 | ||
Shanxi Huaxing | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,850,000 | ||
Percentage of equity attributable to the Company | 60.00% | 60.00% | |
Percentage of indirect equity attributable to the Company | 40.00% | 40.00% | |
Baotou Aluminum | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 2,245,510 | ||
Percentage of equity attributable to the Company | 74.33% | 74.33% | |
Chalco Trading | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,731,111 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% | |
Shanxi Huasheng | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,000,000 | ||
Percentage of equity attributable to the Company | 51.00% | 51.00% | |
Shanxi New Material | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 4,279,601 | ||
Percentage of equity attributable to the Company | 85.98% | 85.98% | |
Zunyi Aluminum Co., Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 3,204,899 | ||
Percentage of equity attributable to the Company | 67.445% | 67.445% | |
Shandong Huayu | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,627,697 | ||
Percentage of equity attributable to the Company | 55.00% | 55.00% | |
Chalco Hong Kong | |||
GENERAL INFORMATION | |||
Registered capital | $ | $ 849,940 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% | |
Chalco Mining | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 4,028,859 | ||
Percentage of equity attributable to the Company | 18.86% | 18.86% | |
Chalco Energy Co., Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 819,993 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% | |
Ningxia Energy | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 5,025,800 | ||
Percentage of equity attributable to the Company | 70.82% | 70.82% | |
Guizhou Huajin | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,000,000 | ||
Percentage of equity attributable to the Company | 60.00% | 60.00% | |
Chalco Zhengzhou Research Institute of Non-ferrous Metal Co., Ltd | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 214,858 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% | |
Chalco Shandong | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 3,808,995 | ||
Percentage of equity attributable to the Company | 69.20% | 69.20% | |
Zhongzhou Aluminum | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 5,071,235 | ||
Percentage of equity attributable to the Company | 63.10% | 63.10% | |
China Aluminum Logistics Group Corporation Co., Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 558,752 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% | |
Xinghua Technology | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 270,000 | ||
Percentage of equity attributable to the Company | 33.00% | 33.00% | |
Percentage of indirect equity attributable to the Company | 33.00% | 33.00% | |
Chinalco Shanghai | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 968,300 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% | |
Shanxi Huarun | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,641,750 | ||
Percentage of equity attributable to the Company | 40.00% | 40.00% | |
Guizhou Huaren New Material | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,200,000 | ||
Percentage of equity attributable to the Company | 40.00% | 40.00% | |
China Aluminum International Trading Group Co. Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,030,000 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% | |
Chalco Materials Co. Ltd. | |||
GENERAL INFORMATION | |||
Registered capital | ¥ 1,000,000 | ||
Percentage of equity attributable to the Company | 100.00% | 100.00% |
BASIS OF PREPARATION AND SIGN_4
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||
Current assets (liabilities) | $ (2,305,770) | ¥ (15,853,323) | ¥ (21,692,788) |
Unutilized banking facilities | 121,518,000 | ||
Unutilized banking facilities subject to renewal during the next 12 months | ¥ 92,582,000 | ||
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 of adopting IFRS 9 (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | ¥ 199,816,799 | |
Expected credit losses | (150,909) | |
Fair value adjustment | 15,114 | |
Financial assets after application of ifrs 9 | 199,681,004 | |
Financial liabilities before application of ifrs 9 | 134,074,203 | |
Fair value adjustment | 3,641 | |
Financial liabilities after application of ifrs 9 | 134,077,844 | |
Provision for impairment | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 46,699,434 | ¥ 2,219,224 |
Expected credit losses | (150,909) | |
Fair value adjustment | 15,114 | 150,909 |
Financial assets after application of ifrs 9 | 46,563,639 | 2,370,133 |
Deferred tax liabilities | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial liabilities before application of ifrs 9 | 993,742 | |
Fair value adjustment | 3,641 | |
Financial liabilities after application of ifrs 9 | 997,383 | |
Trade and notes receivables | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Expected credit losses | (112,407) | |
Trade and notes receivables | Provision for impairment | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 546,102 | |
Fair value adjustment | 112,407 | |
Financial assets after application of ifrs 9 | 658,509 | |
Trade and notes receivables | Loans and receivables | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 8,008,937 | |
Trade and notes receivables | Amortized cost | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets after application of ifrs 9 | 7,896,530 | |
Other current assets | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Expected credit losses | (38,502) | |
Other current assets | Provision for impairment | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 1,673,122 | |
Fair value adjustment | 38,502 | |
Financial assets after application of ifrs 9 | ¥ 1,711,624 | |
Other current assets | Loans and receivables | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 6,487,548 | |
Other current assets | Amortized cost | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets after application of ifrs 9 | 6,449,046 | |
Other non-current assets | Loans and receivables | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 261,156 | |
Other non-current assets | Amortized cost | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets after application of ifrs 9 | 261,156 | |
Financial assets at fair value through profit or loss | Financial assets at fair value through profit or loss | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 9,534 | |
Financial assets after application of ifrs 9 | 9,534 | |
Cash and cash equivalents | Loans and receivables | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 27,835,866 | |
Cash and cash equivalents | Amortized cost | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets after application of ifrs 9 | 27,835,866 | |
Restricted cash | Loans and receivables | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 2,168,192 | |
Restricted cash | Amortized cost | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets after application of ifrs 9 | 2,168,192 | |
Available-for-sale financial investments | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Re-classification | (1,928,201) | |
Available-for-sale financial investments | Financial assets available-for-sale | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets before application of ifrs 9 | 1,928,201 | |
Equity investments designated at fair value through other comprehensive income | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Re-classification | 1,928,201 | |
Fair value adjustment | 15,114 | |
Equity investments designated at fair value through other comprehensive income | Equity investments designated at fair value through other comprehensive income | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Financial assets after application of ifrs 9 | ¥ 1,943,315 |
BASIS OF PREPARATION AND SIGN_6
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Impairment allowances under IAS 9 to ECL allowance under IFRS 9 (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment allowances | ¥ 199,816,799 | |
Re-measurement | 15,114 | |
ECL allowances | 199,681,004 | |
Provision for impairment | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment allowances | 46,699,434 | ¥ 2,219,224 |
Re-measurement | 15,114 | 150,909 |
ECL allowances | ¥ 46,563,639 | 2,370,133 |
Trade and notes receivables | Provision for impairment | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment allowances | 546,102 | |
Re-measurement | 112,407 | |
ECL allowances | 658,509 | |
Other current assets | Provision for impairment | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment allowances | 1,673,122 | |
Re-measurement | 38,502 | |
ECL allowances | ¥ 1,711,624 |
BASIS OF PREPARATION AND SIGN_7
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Impact transition to IFRS 9 (Details) - CNY (¥) ¥ in Thousands | Jan. 01, 2018 | Jan. 01, 2017 | Jan. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2018 |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||
At January 1, | ¥ 65,513,879 | ¥ 55,786,808 | ¥ 51,988,916 | ¥ 55,786,808 | |
At January 1, | 65,742,596 | 55,969,188 | 55,969,188 | ||
Balance as at December 31, 2017 | 65,513,879 | ||||
Adjustment due to business combinations under common control (note 38) | 228,717 | 182,380 | 186,272 | ||
Recognition of expected credit losses | ¥ (15,114) | ||||
At December 31, | 65,603,160 | 55,969,188 | 52,175,188 | 65,742,596 | |
Gain on available-for-sale financial assets | |||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||
At January 1, | 6,836 | 45,901 | 62,598 | 45,901 | |
Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 | 14,263 | ||||
Deferred tax in relation to the above | (3,428) | ||||
At January 1, | 6,836 | 45,901 | 45,901 | ||
Balance as at December 31, 2017 | 6,836 | ||||
At December 31, | 17,671 | 45,901 | 62,598 | 6,836 | |
Retained earnings (Accumulated losses) | |||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||
At January 1, | (3,368,095) | (4,636,530) | (4,894,942) | (4,636,530) | |
At January 1, | (3,332,371) | (4,634,619) | (4,634,619) | ||
Balance as at December 31, 2017 | (3,368,095) | ||||
Adjustment due to business combinations under common control (note 38) | 35,724 | 1,911 | 4,626 | ||
At December 31, | (3,465,717) | (4,634,619) | (4,890,316) | (3,332,371) | |
Non-controlling interests | |||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||
At January 1, | 26,035,429 | 17,618,510 | 11,937,634 | 17,618,510 | |
Remeasurement of equity investments designated at fair value through other comprehensive income previously measured at cost under IAS 39 | 851 | ||||
Deferred tax in relation to the above | (213) | ||||
At January 1, | 26,054,567 | 17,629,045 | 17,629,045 | ||
Balance as at December 31, 2017 | 26,035,429 | ||||
Adjustment due to business combinations under common control (note 38) | 19,138 | 10,535 | 12,404 | ||
At December 31, | ¥ 26,037,642 | ¥ 17,629,045 | ¥ 11,950,038 | 26,054,567 | |
Trade receivables | Retained earnings (Accumulated losses) | |||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||
Recognition of expected credit losses | (94,844) | ||||
Trade receivables | Non-controlling interests | |||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||
Recognition of expected credit losses | (17,563) | ||||
Other current assets | Retained earnings (Accumulated losses) | |||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||
Recognition of expected credit losses | ¥ (38,502) |
BASIS OF PREPARATION AND SIGN_8
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Adoption of IFRS 15 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||||
Accumulated losses | $ (409,640) | ¥ (2,816,481) | ¥ (3,332,371) | |
Contract liabilities | $ 229,703 | 1,579,322 | ||
IFRS 15 application | ||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||||
Reclassification from other payables to contract liabilities | ¥ 1,372,000 | |||
Contract liabilities | ¥ 1,579,000 | |||
Change in accounting policy | ||||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||||
Accumulated losses | ¥ 0 |
BASIS OF PREPARATION AND SIGN_9
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Change on financial statements (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018CNY (¥) | |
Assets | |||||
Property, plant and equipment | $ 15,445,185 | ¥ 95,627,577 | ¥ 90,371,571 | ¥ 106,193,369 | |
Land use rights | 622,543 | 3,577,012 | 4,280,291 | ||
Intangible assets | 1,873,226 | 10,637,633 | 10,592,249 | 12,879,365 | |
Other non-current assets | 646,156 | 3,520,892 | 4,442,644 | ||
Non-current assets subset | 109,842,222 | 127,795,669 | |||
Total assets | 29,216,220 | 199,816,799 | 200,876,114 | ||
Liabilities | |||||
Other non-current liabilities | (354,616) | (2,453,660) | (2,438,164) | ||
Total liabilities | 19,374,142 | 134,074,203 | 133,206,912 | ||
Consolidated statement of profit or loss and other comprehensive income | |||||
Cost of sales | (24,293,421) | ¥ (167,029,416) | (166,290,235) | (133,700,192) | |
General and administration expenses | (3,958,067) | (4,549,206) | |||
Research and development expenses | (91,175) | (626,873) | (498,234) | (168,862) | |
Selling and distribution expenses | (363,164) | (2,496,933) | (2,372,966) | (2,111,787) | |
Other income | 135,367 | 89,873 | |||
Total income | (173,975,922) | (170,749,568) | |||
Profit before income tax | $ 335,029 | 2,303,511 | 3,049,010 | ¥ 1,620,689 | |
Right-of-use assets | 6,929,000 | ||||
Lease liabilities | 6,929,000 | ||||
Before change in accounting policy | |||||
Assets | |||||
Property, plant and equipment | 96,430,815 | 107,066,073 | |||
Land use rights | 3,746,602 | 4,484,055 | |||
Intangible assets | 10,653,175 | 12,881,804 | |||
Other non-current assets | 4,446,938 | ||||
Non-current assets subset | 110,830,592 | 128,878,870 | |||
Total assets | 200,805,169 | 201,959,315 | |||
Liabilities | |||||
Other non-current liabilities | (3,442,030) | (3,521,365) | |||
Total liabilities | 135,062,573 | 134,290,113 | |||
Consolidated statement of profit or loss and other comprehensive income | |||||
Cost of sales | (167,254,868) | (166,494,842) | |||
General and administration expenses | (4,540,590) | (4,604,055) | |||
Research and development expenses | (630,815) | ||||
Selling and distribution expenses | (2,496,977) | ||||
Other income | 947,328 | 349,329 | |||
Total income | (173,975,922) | (170,749,568) | |||
Profit before income tax | 2,303,511 | 3,049,010 | |||
Reclassification on change in accounting policy | |||||
Assets | |||||
Property, plant and equipment | (803,238) | (872,704) | |||
Land use rights | (169,590) | (203,764) | |||
Intangible assets | (15,542) | (2,439) | |||
Other non-current assets | (4,294) | ||||
Non-current assets subset | (988,370) | (1,083,201) | |||
Total assets | (988,370) | (1,083,201) | |||
Liabilities | |||||
Other non-current liabilities | 988,370 | 1,083,201 | |||
Total liabilities | (988,370) | ¥ (1,083,201) | |||
Consolidated statement of profit or loss and other comprehensive income | |||||
Cost of sales | 225,452 | 204,607 | |||
General and administration expenses | 582,523 | 54,849 | |||
Research and development expenses | 3,942 | ||||
Selling and distribution expenses | 44 | ||||
Other income | ¥ (811,961) | ¥ (259,456) |
BASIS OF PREPARATION AND SIG_10
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018CNY (¥) | Dec. 31, 2017 | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment loss | ¥ 0 | |
Monthly retirement benefit contributions of the qualified employees' salaries (as a percent) | 20 | 20 |
Buildings | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 50 years | |
Other intangible assets mainly include profit sharing rights of Maochang mine | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful lives, intangible assets | 22 years 6 months | |
Minimum | Land use rights | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 40 years | |
Minimum | Bauxite and other mining rights | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful lives, intangible assets | 3 years | |
Maximum | Land use rights | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 70 years | |
Maximum | Bauxite and other mining rights | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful lives, intangible assets | 30 years | |
Maximum | Computer software | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful lives, intangible assets | 10 years | |
Buildings | Minimum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 8 years | |
Buildings | Maximum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 45 years | |
Machinery | Minimum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 3 years | |
Machinery | Maximum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 30 years | |
Transportation facilities | Minimum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 6 years | |
Transportation facilities | Maximum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 10 years | |
Office and other equipment | Minimum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 3 years | |
Office and other equipment | Maximum | ||
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | ||
Estimated useful life | 10 years |
SIGNIFICANT ACCOUNTING ESTIMA_2
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (Details) | 12 Months Ended |
Dec. 31, 2018director | |
Yinxing Energy | |
Significant accounting estimates and judgements | |
Ownership interest in subsidiary (in percent) | 40.23% |
Ownership interest in subsidiary held by the other majority shareholders (in percent) | 59.77% |
Chalco Mining | |
Significant accounting estimates and judgements | |
Ownership interest in subsidiary (in percent) | 18.86% |
Guizhou Huaren | |
Significant accounting estimates and judgements | |
Ownership interest in subsidiary (in percent) | 40.00% |
Shanxi Zhongrun | |
Significant accounting estimates and judgements | |
Ownership interest in subsidiary (in percent) | 40.00% |
Chalco Resources | |
Significant accounting estimates and judgements | |
Ownership interest in associate (in percent) | 6.68% |
Number of directors can be appointed | 1 |
Total number of directors | 5 |
China Rare Earth | |
Significant accounting estimates and judgements | |
Ownership interest in associate (in percent) | 14.62% |
Number of directors can be appointed | 1 |
Total number of directors | 7 |
Chinalco Capital | |
Significant accounting estimates and judgements | |
Voting rights in associate (in percent) | 17.70% |
Number of directors can be appointed | 1 |
Total number of directors | 3 |
New Aluminum Power | |
Significant accounting estimates and judgements | |
Ownership interest in associate (in percent) | 16.00% |
Number of directors can be appointed | 1 |
Total number of directors | 9 |
Inner Mongolia Qiliugou | |
Significant accounting estimates and judgements | |
Ownership interest in associate (in percent) | 14.29% |
Voting rights in associate (in percent) | 20.00% |
REVENUE AND SEGMENT INFORMATI_3
REVENUE AND SEGMENT INFORMATION - Revenue (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Revenue | ||||
Sales of goods (net of value-added tax) | ¥ 179,784,444 | ¥ 180,704,153 | ¥ 144,564,755 | |
Revenue from rendering of services | 215,557 | 163,732 | 123,966 | |
Rental income | 240,153 | 152,543 | 165,861 | |
Total revenue | $ 26,214,843 | ¥ 180,240,154 | ¥ 181,020,428 | ¥ 144,854,582 |
REVENUE AND SEGMENT INFORMATI_4
REVENUE AND SEGMENT INFORMATION - Disaggregated revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
Sales of goods | ¥ 179,784,444 | ¥ 180,704,153 | ¥ 144,564,755 |
Rendering of services | 215,557 | 163,732 | 123,966 |
Total revenue | 180,000,001 | 181,020,428 | 144,854,582 |
Sale of goods | 1,277,125 | ||
Others | 32,947 | ||
Revenue recognised that was included in contract liabilities at the beginning of the reporting period | 1,310,072 | ||
Transaction price allocated to remaining performance obligations | ¥ 1,712,166 | ||
Period of remaining performance obligation | 1–10 years | ||
Within 1 year | |||
Disclosure of operating segments [line items] | |||
Transaction price allocated to remaining performance obligations | ¥ 1,579,322 | ||
More than one year | |||
Disclosure of operating segments [line items] | |||
Transaction price allocated to remaining performance obligations | 132,844 | ||
Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 180,000,001 | 181,020,428 | 144,854,582 |
Goods transferred at a point in time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 179,784,444 | ||
Services transferred over time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 215,557 | ||
Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 170,783,442 | ||
Outside of Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 9,216,559 | ||
Goods or Services | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 180,000,001 | ||
Sales of goods | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 179,784,444 | ||
Rendering of services | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Rendering of services | 215,557 | ||
Operating segment | |||
Disclosure of operating segments [line items] | |||
Total revenue | 247,632,025 | ||
Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Total revenue | (67,632,024) | (58,973,482) | (39,632,607) |
Inter-segment elimination | Goods transferred at a point in time | |||
Disclosure of operating segments [line items] | |||
Total revenue | (67,632,024) | ||
Inter-segment elimination | Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | (67,632,024) | ||
Inter-segment elimination | Goods or Services | |||
Disclosure of operating segments [line items] | |||
Total revenue | (67,632,024) | ||
Inter-segment elimination | Sales of goods | |||
Disclosure of operating segments [line items] | |||
Sales of goods | (67,632,024) | ||
Alumina | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 14,586,564 | ||
Alumina | Operating segment | |||
Disclosure of operating segments [line items] | |||
Total revenue | 43,979,059 | 38,997,261 | 30,027,317 |
Alumina | Operating segment | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 14,565,322 | 9,518,851 | |
Alumina | Operating segment | Goods transferred at a point in time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 43,979,059 | ||
Alumina | Operating segment | Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 43,979,059 | ||
Alumina | Operating segment | Goods or Services | |||
Disclosure of operating segments [line items] | |||
Total revenue | 43,979,059 | ||
Alumina | Operating segment | Sales of goods | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 43,979,059 | ||
Alumina | Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Total revenue | (29,392,495) | ||
Primary aluminum | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 41,313,516 | ||
Primary aluminum | Operating segment | |||
Disclosure of operating segments [line items] | |||
Total revenue | 53,771,379 | 47,245,646 | 35,089,860 |
Primary aluminum | Operating segment | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 36,551,968 | 30,107,924 | |
Primary aluminum | Operating segment | Goods transferred at a point in time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 53,771,379 | ||
Primary aluminum | Operating segment | Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 53,771,379 | ||
Primary aluminum | Operating segment | Goods or Services | |||
Disclosure of operating segments [line items] | |||
Total revenue | 53,771,379 | ||
Primary aluminum | Operating segment | Sales of goods | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 53,771,379 | ||
Primary aluminum | Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Total revenue | (12,457,863) | ||
Energy | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 7,036,936 | ||
Energy | Operating segment | |||
Disclosure of operating segments [line items] | |||
Total revenue | 7,235,273 | 6,250,966 | 4,519,806 |
Energy | Operating segment | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 5,733,697 | 4,382,346 | |
Energy | Operating segment | Goods transferred at a point in time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 7,019,716 | ||
Energy | Operating segment | Services transferred over time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 215,557 | ||
Energy | Operating segment | Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 7,235,273 | ||
Energy | Operating segment | Goods or Services | |||
Disclosure of operating segments [line items] | |||
Total revenue | 7,235,273 | ||
Energy | Operating segment | Sales of goods | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 7,019,716 | ||
Energy | Operating segment | Rendering of services | |||
Disclosure of operating segments [line items] | |||
Rendering of services | 215,557 | ||
Energy | Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Total revenue | (198,337) | ||
Trading | |||
Disclosure of operating segments [line items] | |||
Total revenue | 141,979,219 | ||
Trading | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 116,608,916 | ||
Trading | Operating segment | |||
Disclosure of operating segments [line items] | |||
Total revenue | 141,979,219 | 146,854,723 | 114,345,851 |
Trading | Operating segment | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 123,695,608 | 100,439,428 | |
Trading | Operating segment | Goods transferred at a point in time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 141,979,219 | ||
Trading | Operating segment | Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 132,762,660 | ||
Trading | Operating segment | Outside of Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 9,216,559 | ||
Trading | Operating segment | Goods or Services | |||
Disclosure of operating segments [line items] | |||
Total revenue | 141,979,219 | ||
Trading | Operating segment | Sales of goods | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 141,979,219 | ||
Trading | Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Total revenue | (25,370,303) | ||
Corporate and other operating segments | |||
Disclosure of operating segments [line items] | |||
Total revenue | 667,095 | ||
Corporate and other operating segments | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | 454,069 | ||
Corporate and other operating segments | Goods or Services | |||
Disclosure of operating segments [line items] | |||
Total revenue | 667,095 | ||
Corporate and other operating segments | Operating segment | |||
Disclosure of operating segments [line items] | |||
Total revenue | 667,095 | 645,314 | 504,355 |
Corporate and other operating segments | Operating segment | Revenue from external customer | |||
Disclosure of operating segments [line items] | |||
Total revenue | ¥ 473,833 | ¥ 406,033 | |
Corporate and other operating segments | Operating segment | Goods transferred at a point in time | |||
Disclosure of operating segments [line items] | |||
Total revenue | 667,095 | ||
Corporate and other operating segments | Operating segment | Mainland China | |||
Disclosure of operating segments [line items] | |||
Total revenue | 667,095 | ||
Corporate and other operating segments | Operating segment | Sales of goods | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 667,095 | ||
Corporate and other operating segments | Inter-segment elimination | |||
Disclosure of operating segments [line items] | |||
Total revenue | ¥ (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, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥)segment | Dec. 31, 2016CNY (¥)segment | Dec. 31, 2015segment | Dec. 31, 2018CNY (¥) | |
Segment information | ||||||
Number of reportable operating segments | segment | 5 | 5 | 5 | |||
Total revenue | $ 26,214,843 | ¥ 180,240,154 | ¥ 181,020,428 | ¥ 144,854,582 | ||
Total revenue | 180,000,001 | 181,020,428 | 144,854,582 | |||
Segment profit/(loss) before income tax | 335,029 | 2,303,511 | 3,049,010 | 1,620,689 | ||
Income tax benefit/(expense) | (119,628) | (822,499) | (643,734) | (403,899) | ||
Profit for the year | 215,401 | 1,481,012 | 2,405,276 | 1,216,790 | ||
Finance income | 71,592 | 492,232 | 706,690 | 815,729 | ||
Finance costs | (710,130) | (4,882,496) | (5,203,424) | (5,019,908) | ||
Share of profits and losses of joint ventures | (29,009) | (199,452) | 8,151 | (95,508) | ||
Share of profits and losses of associates | 5,721 | 39,335 | (165,249) | 115,091 | ||
Amortization of land use rights | (107,537) | (91,579) | (99,724) | |||
Depreciation and amortization (excluding the amortization of land use rights) | (7,947,600) | (6,972,550) | (6,900,953) | |||
Gain on disposal of property, plant and equipment and land use rights | 101,098 | 76,739 | 816,721 | |||
Impairment of property, plant and equipment | (1,084) | (7,450) | (16,200) | (57,080) | ||
Changes in fair value gains and losses | 154,585 | |||||
Unrealized gains (loss) on future, forward and option contracts, net | 100,967 | (131,073) | ||||
Realised gain/(loss) on futures, forward and option contracts, net | 40,492 | (23,951) | (1,290,267) | |||
Gain (loss) on deemed disposal and disposal of subsidiaries | 3,517 | (325,022) | ||||
Gain on disposal of associates | 79,408 | |||||
Dividends from available for sale financial assets | 140,929 | |||||
Impairment losses | (8,134) | |||||
Change for impairment of inventories | (353,945) | 154,294 | 1,662,388 | |||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (107,841) | (60,699) | 44,005 | |||
Gain (loss) on disposal of associates | 1,904 | 128,833 | ||||
Gain on disposal and dividends of available for sale | 109,914 | |||||
Gain on previously held equity interest remeasured at a acquisition-date fair value | 748,086 | 117,640 | ||||
Investments in joint ventures | 493,542 | 6,007,624 | 6,240,200 | ¥ 3,393,349 | ||
Investments in associates | $ 925,527 | 6,935,030 | 5,926,533 | 6,363,462 | ||
Capital expenditure in: | ||||||
Intangible assets | 103,304 | 285,167 | 344,099 | |||
Land use rights | 2,838 | 59,215 | 20,963 | |||
Investment properties | 92,267 | |||||
Property, plant and equipment | 9,022,224 | 9,763,667 | 8,426,702 | |||
Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 180,240,154 | |||||
Total revenue | 180,000,001 | 181,020,428 | 144,854,582 | |||
Self-produced alumina | ||||||
Segment information | ||||||
Sales of self- produced products | 16,561,000 | 13,187,000 | 12,795,000 | |||
Self-produced primary aluminum | ||||||
Segment information | ||||||
Sales of self- produced products | 13,517,000 | 6,680,000 | 3,684,000 | |||
Self-produced other products | ||||||
Segment information | ||||||
Sales of self- produced products | 4,376,000 | 3,292,000 | 1,814,000 | |||
Operating segment | ||||||
Segment information | ||||||
Total revenue | 247,632,025 | |||||
Inter-segment elimination | ||||||
Segment information | ||||||
Inter-segment revenue | 67,632,024 | 58,973,482 | 39,632,607 | |||
Total revenue | (67,632,024) | |||||
Total revenue | (67,632,024) | (58,973,482) | (39,632,607) | |||
Segment profit/(loss) before income tax | 198,103 | 97,575 | (318,017) | |||
Alumina | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 14,586,564 | |||||
Alumina | Operating segment | ||||||
Segment information | ||||||
Inter-segment revenue | (29,392,495) | (24,431,939) | (20,508,466) | |||
Total revenue | 44,150,937 | |||||
Total revenue | 43,979,059 | 38,997,261 | 30,027,317 | |||
Segment profit/(loss) before income tax | 3,496,381 | 3,290,945 | 910,426 | |||
Finance income | 100,125 | 233,016 | 302,230 | |||
Finance costs | (399,344) | (708,655) | (1,016,455) | |||
Share of profits and losses of joint ventures | 37,377 | 82,619 | (41,367) | |||
Share of profits and losses of associates | (1,141) | |||||
Amortization of land use rights | (39,027) | (42,768) | (43,523) | |||
Depreciation and amortization (excluding the amortization of land use rights) | (2,846,051) | (2,781,350) | (2,847,343) | |||
Gain on disposal of property, plant and equipment and land use rights | 53,116 | 47,243 | 191,364 | |||
Impairment of property, plant and equipment | (568) | (35,893) | ||||
Realised gain/(loss) on futures, forward and option contracts, net | (716) | 3,398 | (1,297) | |||
Gain (loss) on deemed disposal and disposal of subsidiaries | 7,671 | |||||
Change for impairment of inventories | (54,463) | 79,063 | 684,271 | |||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | 19,320 | (17,453) | 53,144 | |||
Investments in joint ventures | 2,809,758 | 2,631,546 | 989,840 | |||
Investments in associates | 90,875 | 69,000 | 89,734 | |||
Capital expenditure in: | ||||||
Intangible assets | 99,089 | 336,603 | ||||
Land use rights | 2,786 | |||||
Investment properties | 50,285 | |||||
Property, plant and equipment | 2,564,003 | 2,642,350 | 2,455,066 | |||
Alumina | Operating segment | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 14,758,442 | |||||
Total revenue | 14,565,322 | 9,518,851 | ||||
Alumina | Inter-segment elimination | ||||||
Segment information | ||||||
Total revenue | (29,392,495) | |||||
Primary aluminum | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 41,313,516 | |||||
Primary aluminum | Operating segment | ||||||
Segment information | ||||||
Inter-segment revenue | (12,457,863) | (10,693,678) | (4,981,936) | |||
Total revenue | 53,802,172 | |||||
Total revenue | 53,771,379 | 47,245,646 | 35,089,860 | |||
Segment profit/(loss) before income tax | (929,298) | 826,632 | 2,183,826 | |||
Finance income | 54,458 | 83,996 | 36,139 | |||
Finance costs | (1,131,622) | (1,212,249) | (1,226,821) | |||
Share of profits and losses of joint ventures | 8 | |||||
Share of profits and losses of associates | 17,102 | (16,887) | 958 | |||
Amortization of land use rights | (41,175) | (25,120) | (27,464) | |||
Depreciation and amortization (excluding the amortization of land use rights) | (2,954,801) | (2,516,058) | (2,612,308) | |||
Gain on disposal of property, plant and equipment and land use rights | 15,211 | 40,106 | 361,155 | |||
Impairment of property, plant and equipment | (18,239) | |||||
Changes in fair value gains and losses | 16,778 | |||||
Unrealized gains (loss) on future, forward and option contracts, net | (17,033) | |||||
Realised gain/(loss) on futures, forward and option contracts, net | (47,730) | (271,000) | ||||
Gain on disposal of associates | 2,792 | |||||
Change for impairment of inventories | (273,796) | 64,734 | 505,595 | |||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (9,406) | 269 | (2,465) | |||
Investments in associates | 296,357 | 313,244 | 558,759 | |||
Capital expenditure in: | ||||||
Intangible assets | 753 | 197 | 3 | |||
Land use rights | 26 | |||||
Investment properties | 3,354 | |||||
Property, plant and equipment | 4,602,580 | 5,533,168 | 4,203,385 | |||
Primary aluminum | Operating segment | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 41,344,309 | |||||
Total revenue | 36,551,968 | 30,107,924 | ||||
Primary aluminum | Inter-segment elimination | ||||||
Segment information | ||||||
Total revenue | (12,457,863) | |||||
Energy | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 7,036,936 | |||||
Energy | Operating segment | ||||||
Segment information | ||||||
Inter-segment revenue | (198,337) | (517,269) | (137,460) | |||
Total revenue | 7,235,273 | |||||
Total revenue | 7,235,273 | 6,250,966 | 4,519,806 | |||
Segment profit/(loss) before income tax | 26,020 | (171,310) | 33,408 | |||
Finance income | 15,744 | 44,015 | 51,897 | |||
Finance costs | (1,047,285) | (1,000,767) | (987,422) | |||
Share of profits and losses of joint ventures | (225,377) | (383,263) | (28,312) | |||
Share of profits and losses of associates | (52,368) | (181,667) | 87,359 | |||
Amortization of land use rights | (9,335) | (15) | (11,172) | |||
Depreciation and amortization (excluding the amortization of land use rights) | (1,962,081) | (1,510,218) | (1,298,483) | |||
Gain on disposal of property, plant and equipment and land use rights | 24,780 | (12,826) | 253,566 | |||
Impairment of property, plant and equipment | (7,450) | (15,632) | (2,948) | |||
Realised gain/(loss) on futures, forward and option contracts, net | 2,855 | 1,585 | ||||
Gain (loss) on deemed disposal and disposal of subsidiaries | (38,397) | |||||
Dividends from available for sale financial assets | 1,000 | |||||
Change for impairment of inventories | (7,884) | 4,488 | 159 | |||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (23,327) | (25,119) | (836) | |||
Gain (loss) on disposal of associates | 1,904 | |||||
Gain on disposal and dividends of available for sale | 1,000 | |||||
Gain on previously held equity interest remeasured at a acquisition-date fair value | (3,177) | 117,640 | ||||
Investments in joint ventures | 878,196 | 1,559,966 | 435,867 | |||
Investments in associates | 2,170,178 | 2,351,845 | 2,064,425 | |||
Capital expenditure in: | ||||||
Intangible assets | 2,754 | 284,509 | 6,857 | |||
Land use rights | 27,956 | 20,937 | ||||
Property, plant and equipment | 1,610,442 | 1,268,051 | 1,582,039 | |||
Energy | Operating segment | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 7,036,936 | |||||
Total revenue | 5,733,697 | 4,382,346 | ||||
Energy | Inter-segment elimination | ||||||
Segment information | ||||||
Total revenue | (198,337) | |||||
Trading | ||||||
Segment information | ||||||
Total revenue | 141,979,219 | |||||
Trading | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 116,608,916 | |||||
Trading | Operating segment | ||||||
Segment information | ||||||
Inter-segment revenue | (25,370,303) | (23,159,115) | (13,906,423) | |||
Sales of self- produced products | 34,453,683 | 23,158,952 | 18,292,949 | |||
Sales of products sourced from external suppliers | 82,192,575 | 100,536,656 | 82,146,479 | |||
Total revenue | 142,016,561 | |||||
Total revenue | 141,979,219 | 146,854,723 | 114,345,851 | |||
Segment profit/(loss) before income tax | 779,451 | 733,731 | 804,207 | |||
Finance income | 136,513 | 192,327 | 226,941 | |||
Finance costs | (366,807) | (467,090) | (329,454) | |||
Share of profits and losses of joint ventures | 9,010 | 1,885 | ||||
Share of profits and losses of associates | 19,375 | 9,463 | (810) | |||
Amortization of land use rights | (18,000) | (6,376) | (15) | |||
Depreciation and amortization (excluding the amortization of land use rights) | (101,705) | (78,724) | (54,724) | |||
Gain on disposal of property, plant and equipment and land use rights | 20,036 | 1,673 | 2,890 | |||
Changes in fair value gains and losses | 109,906 | |||||
Unrealized gains (loss) on future, forward and option contracts, net | 100,967 | (92,719) | ||||
Realised gain/(loss) on futures, forward and option contracts, net | 47,601 | (24,953) | (457,702) | |||
Gain (loss) on deemed disposal and disposal of subsidiaries | (54,599) | |||||
Change for impairment of inventories | (17,802) | 722 | 471,218 | |||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (84,807) | (18,396) | (5,838) | |||
Investments in joint ventures | 28,865 | 77,211 | ||||
Investments in associates | 184,149 | 146,926 | 131,691 | |||
Capital expenditure in: | ||||||
Intangible assets | 514 | 372 | 509 | |||
Land use rights | 52 | 25,199 | ||||
Investment properties | 38,628 | |||||
Property, plant and equipment | 101,360 | 64,005 | 42,476 | |||
Trading | Operating segment | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 116,646,258 | |||||
Total revenue | 123,695,608 | 100,439,428 | ||||
Trading | Inter-segment elimination | ||||||
Segment information | ||||||
Total revenue | (25,370,303) | |||||
Corporate and other operating segments | ||||||
Segment information | ||||||
Total revenue | 667,095 | |||||
Corporate and other operating segments | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 454,069 | |||||
Corporate and other operating segments | Operating segment | ||||||
Segment information | ||||||
Inter-segment revenue | (213,026) | (171,481) | (98,322) | |||
Total revenue | 667,235 | |||||
Total revenue | 667,095 | 645,314 | 504,355 | |||
Segment profit/(loss) before income tax | (1,267,146) | (1,728,563) | (1,993,161) | |||
Finance income | 185,392 | 153,336 | 198,522 | |||
Finance costs | (1,937,438) | (1,814,663) | (1,459,756) | |||
Share of profits and losses of joint ventures | (20,470) | 306,910 | (25,829) | |||
Share of profits and losses of associates | 56,367 | 23,842 | 27,584 | |||
Amortization of land use rights | (17,300) | (17,550) | ||||
Depreciation and amortization (excluding the amortization of land use rights) | (82,962) | (86,200) | (88,095) | |||
Gain on disposal of property, plant and equipment and land use rights | (12,045) | 543 | 7,746 | |||
Changes in fair value gains and losses | 27,901 | |||||
Unrealized gains (loss) on future, forward and option contracts, net | (21,321) | |||||
Realised gain/(loss) on futures, forward and option contracts, net | (9,248) | 43,749 | (560,268) | |||
Gain (loss) on deemed disposal and disposal of subsidiaries | (4,154) | (232,026) | ||||
Gain on disposal of associates | 76,616 | |||||
Dividends from available for sale financial assets | 139,929 | |||||
Change for impairment of inventories | 5,287 | 1,145 | ||||
Reversal of/(provision for) impairment of receivables, net of bad debts recovered | (9,621) | |||||
Gain (loss) on disposal of associates | 128,833 | |||||
Gain on disposal and dividends of available for sale | 108,914 | |||||
Gain on previously held equity interest remeasured at a acquisition-date fair value | 751,263 | |||||
Investments in joint ventures | 2,290,805 | 2,048,688 | 1,890,431 | |||
Investments in associates | 4,193,471 | 3,045,518 | ¥ 3,518,853 | |||
Capital expenditure in: | ||||||
Intangible assets | 194 | 89 | 127 | |||
Land use rights | 6,060 | |||||
Property, plant and equipment | 143,839 | 256,093 | 143,736 | |||
Corporate and other operating segments | Operating segment | Revenue from external customer | ||||||
Segment information | ||||||
Total revenue | 454,209 | |||||
Total revenue | ¥ 473,833 | ¥ 406,033 | ||||
Corporate and other operating segments | Inter-segment elimination | ||||||
Segment information | ||||||
Total revenue | ¥ (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, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Assets | |||
Assets | $ 29,216,220 | ¥ 200,876,114 | ¥ 199,816,799 |
Other eliminations | 169,881 | 113,146 | |
Deferred tax assets | 224,357 | 1,542,569 | 1,606,150 |
Prepaid income tax | 162,103 | 64,557 | |
Liabilities | |||
Liabilities | 19,374,142 | 133,206,912 | 134,074,203 |
Deferred tax liabilities | 263,662 | 1,812,805 | 993,742 |
Income tax payable | $ 16,549 | 113,783 | 213,262 |
Operating segment | |||
Assets | |||
Assets | 233,555,059 | 228,511,422 | |
Liabilities | |||
Liabilities | 165,508,658 | 163,037,766 | |
Operating segment | Alumina | |||
Assets | |||
Assets | 82,677,250 | 69,810,387 | |
Liabilities | |||
Liabilities | 38,817,030 | 33,037,329 | |
Operating segment | Primary aluminum | |||
Assets | |||
Assets | 57,712,842 | 51,736,716 | |
Liabilities | |||
Liabilities | 34,492,538 | 29,552,176 | |
Operating segment | Energy | |||
Assets | |||
Assets | 39,458,086 | 40,113,747 | |
Liabilities | |||
Liabilities | 27,265,031 | 27,368,026 | |
Operating segment | Trading | |||
Assets | |||
Assets | 20,129,355 | 18,586,406 | |
Liabilities | |||
Liabilities | 14,442,010 | 13,067,384 | |
Operating segment | Corporate and other operating segments | |||
Assets | |||
Assets | 33,577,526 | 48,264,166 | |
Liabilities | |||
Liabilities | 50,492,049 | 60,012,851 | |
Inter-segment elimination | |||
Assets | |||
Elimination of inter-segment receivables | (34,228,334) | (30,170,567) | |
Other eliminations | (155,283) | (194,763) | |
Liabilities | |||
Elimination of inter-segment payables | (34,228,334) | (30,170,567) | |
Corporate and other unallocated assets | |||
Assets | |||
Deferred tax assets | 1,542,569 | 1,606,150 | |
Prepaid income tax | 162,103 | 64,557 | |
Liabilities | |||
Deferred tax liabilities | 1,812,805 | 993,742 | |
Income tax payable | ¥ 113,783 | ¥ 213,262 |
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, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disclosure of geographical areas [line items] | ||||
Revenue from external customers | ¥ 180,000,001 | ¥ 181,020,428 | ¥ 144,854,582 | |
Non-current assets (excluding financial assets and deferred tax assets) | 138,503,768 | 127,376,982 | ||
Revenue | $ 26,214,843 | 180,240,154 | 181,020,428 | 144,854,582 |
Mainland China | ||||
Disclosure of geographical areas [line items] | ||||
Revenue from external customers | 170,783,442 | |||
Non-current assets (excluding financial assets and deferred tax assets) | 137,857,441 | 126,992,893 | ||
Revenue | 171,023,595 | 171,954,097 | 142,018,789 | |
Outside of Mainland China | ||||
Disclosure of geographical areas [line items] | ||||
Revenue from external customers | 9,216,559 | |||
Non-current assets (excluding financial assets and deferred tax assets) | 646,327 | 384,089 | ||
Revenue | 9,216,559 | 9,066,331 | ¥ 2,835,793 | |
PRC government including Chinalco | ||||
Disclosure of geographical areas [line items] | ||||
Revenue | ¥ 32,852,000 | ¥ 39,759,000 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | ¥ 10,637,633 | ¥ 10,592,249 | ||
Additions | 103,304 | 285,167 | ¥ 344,099 | |
Acquisition of a subsidiary | 1,893,300 | 188 | ||
Disposal | (11,168) | |||
Disposal of subsidiaries | (168) | (562) | ||
Amortization | (295,901) | (275,877) | (244,361) | |
Transfer from property, plant and equipment | 525,216 | |||
Impairment losses | (8,134) | |||
Reclassification | 76,179 | |||
Currency translation differences | 15,981 | (20,409) | ||
Intangible assets and goodwill at end of period | $ 1,873,226 | 12,879,365 | 10,637,633 | 10,592,249 |
Goodwill | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 2,345,930 | 2,346,853 | ||
Acquisition of a subsidiary | 1,163,949 | |||
Currency translation differences | 754 | (923) | ||
Intangible assets and goodwill at end of period | 3,510,633 | 2,345,930 | 2,346,853 | |
Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 7,066,428 | 6,981,217 | ||
Additions | 98,995 | 280,340 | ||
Acquisition of a subsidiary | 728,066 | |||
Amortization | (265,108) | (241,261) | ||
Transfer from property, plant and equipment | 41,148 | |||
Reclassification | 7,072 | 53,565 | ||
Currency translation differences | 5,782 | (7,433) | ||
Intangible assets and goodwill at end of period | 7,682,383 | 7,066,428 | 6,981,217 | |
Mineral exploration rights | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,111,586 | 1,123,639 | ||
Reclassification | (7,072) | |||
Currency translation differences | 9,445 | (12,053) | ||
Intangible assets and goodwill at end of period | 1,113,959 | 1,111,586 | 1,123,639 | |
Computer software, production quota and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 113,689 | 140,540 | ||
Additions | 4,309 | 4,827 | ||
Acquisition of a subsidiary | 1,285 | 188 | ||
Disposal | (11,168) | |||
Disposal of subsidiaries | (168) | (562) | ||
Amortization | (30,793) | (34,616) | ||
Transfer from property, plant and equipment | 484,068 | |||
Impairment losses | (8,134) | |||
Reclassification | 22,614 | |||
Intangible assets and goodwill at end of period | 572,390 | 113,689 | ¥ 140,540 | |
Gross | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 12,403,391 | |||
Intangible assets and goodwill at end of period | 14,943,750 | 12,403,391 | ||
Gross | Goodwill | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 2,345,930 | |||
Intangible assets and goodwill at end of period | 3,510,633 | 2,345,930 | ||
Gross | Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 8,546,343 | |||
Intangible assets and goodwill at end of period | 9,430,183 | 8,546,343 | ||
Gross | Mineral exploration rights | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 1,111,586 | |||
Intangible assets and goodwill at end of period | 1,113,959 | 1,111,586 | ||
Gross | Computer software, production quota and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | 399,532 | |||
Intangible assets and goodwill at end of period | 888,975 | 399,532 | ||
Accumulated amortization and impairment | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (1,765,758) | |||
Intangible assets and goodwill at end of period | (2,064,385) | (1,765,758) | ||
Accumulated amortization and impairment | Mining rights and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (1,479,915) | |||
Intangible assets and goodwill at end of period | (1,747,800) | (1,479,915) | ||
Accumulated amortization and impairment | Computer software, production quota and others | ||||
Reconciliation of changes in intangible assets and goodwill | ||||
Intangible assets and goodwill at beginning of period | (285,843) | |||
Intangible assets and goodwill at end of period | ¥ (316,585) | ¥ (285,843) |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization expenses of intangible assets (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Amortisation expenses of intangible assets recognized in profit or loss | |||
Amortization expenses of intangible assets | ¥ 295,901 | ¥ 275,877 | ¥ 244,361 |
Carrying amount of pledged intangible assets | 772,597 | 1,111,705 | |
Mining rights | |||
Amortisation expenses of intangible assets recognized in profit or loss | |||
Mining rights carrying value | ¥ 626,000 | ¥ 1,680,000 | |
Carrying value to total asset value (as a percent) | 0.31 | 0.84 | |
Cost of sales | |||
Amortisation expenses of intangible assets recognized in profit or loss | |||
Amortization expenses of intangible assets | ¥ 265,108 | ¥ 241,261 | 211,915 |
General and administrative expenses | |||
Amortisation expenses of intangible assets recognized in profit or loss | |||
Amortization expenses of intangible assets | ¥ 30,793 | ¥ 34,616 | ¥ 32,446 |
INTANGIBLE ASSETS - Impairment
INTANGIBLE ASSETS - Impairment testing of goodwill (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 1,369,107 | 204,404 |
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 | 15,739 | 14,985 |
Alumina | Shanxi Huaxing | ||
Groups of CGUs according to operating segments | ||
Goodwill | 1,163,949 | |
Primary aluminium | CGU | ||
Groups of CGUs according to operating segments | ||
Goodwill | 2,141,526 | 2,141,526 |
Primary aluminium | Qinghai Branch | ||
Groups of CGUs according to operating segments | ||
Goodwill | 217,267 | 217,267 |
Primary aluminium | 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, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | ¥ 95,627,577 | ¥ 90,371,571 | ||
Government grants | (113,949) | (109,564) | ||
Transfer to intangible assets (note 5) | (525,216) | (76,179) | ||
Transfer to land use rights (note 8) | (382,242) | (396,398) | ||
Transfer to investment properties (note 7) | (11,039) | (157,150) | ||
Transfer from investment properties (note 7) | (21,773) | |||
Additions | 10,335,155 | 10,763,703 | ||
Acquisition of subsidiaries | 11,832,230 | 3,594,970 | ||
Disposal of subsidiaries | (9,519) | (265,621) | ||
Disposals | (3,074,935) | (1,526,310) | ||
Depreciation | (7,499,322) | (6,554,775) | ||
Impairment loss on property, plant and equipment | $ (1,084) | (7,450) | (16,200) | ¥ (57,080) |
Currency translation differences | 306 | (470) | ||
Property, plant and equipment at end of period | 15,445,185 | 106,193,369 | 95,627,577 | 90,371,571 |
Property, plant and equipment | $ 15,445,185 | 95,627,577 | 90,371,571 | 90,371,571 |
Gross | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 163,426,377 | |||
Property, plant and equipment at end of period | 176,464,562 | 163,426,377 | ||
Property, plant and equipment | 163,426,377 | 163,426,377 | ||
Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (67,798,800) | |||
Property, plant and equipment at end of period | (70,271,193) | (67,798,800) | ||
Property, plant and equipment | (67,798,800) | (67,798,800) | ||
Buildings | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 32,288,223 | 27,918,175 | ||
Reclassifications and internal transfers | 3,204,611 | 5,334,951 | ||
Government grants | (468) | (3,585) | ||
Transfer to investment properties (note 7) | (11,039) | (157,150) | ||
Transfer from investment properties (note 7) | (21,773) | |||
Additions | 230,243 | 8,941 | ||
Acquisition of subsidiaries | 4,633,728 | 889,597 | ||
Disposal of subsidiaries | (86,945) | |||
Disposals | (251,212) | (37,678) | ||
Depreciation | (1,266,607) | (1,577,363) | ||
Impairment loss on property, plant and equipment | (564) | |||
Currency translation differences | 99 | (156) | ||
Property, plant and equipment at end of period | 38,849,351 | 32,288,223 | 27,918,175 | |
Property, plant and equipment | 32,288,223 | 27,918,175 | 27,918,175 | |
Buildings | Gross | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 48,990,555 | |||
Property, plant and equipment at end of period | 56,620,994 | 48,990,555 | ||
Property, plant and equipment | 48,990,555 | 48,990,555 | ||
Buildings | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (16,702,332) | |||
Property, plant and equipment at end of period | (17,771,643) | (16,702,332) | ||
Property, plant and equipment | (16,702,332) | (16,702,332) | ||
Machinery | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 52,784,696 | 45,522,495 | ||
Reclassifications and internal transfers | 3,600,371 | 9,722,364 | ||
Government grants | (113,481) | (105,979) | ||
Additions | 1,998,717 | 1,068,129 | ||
Acquisition of subsidiaries | 4,026,062 | 2,600,315 | ||
Disposal of subsidiaries | (472) | (62,814) | ||
Disposals | (2,505,158) | (1,140,096) | ||
Depreciation | (6,087,890) | (4,803,886) | ||
Impairment loss on property, plant and equipment | (7,061) | (15,636) | ||
Currency translation differences | 146 | (196) | ||
Property, plant and equipment at end of period | 53,695,930 | 52,784,696 | 45,522,495 | |
Property, plant and equipment | 52,784,696 | 45,522,495 | 45,522,495 | |
Machinery | Gross | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 101,005,277 | |||
Property, plant and equipment at end of period | 103,608,492 | 101,005,277 | ||
Property, plant and equipment | 101,005,277 | 101,005,277 | ||
Machinery | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (48,220,581) | |||
Property, plant and equipment at end of period | (49,912,562) | (48,220,581) | ||
Property, plant and equipment | (48,220,581) | (48,220,581) | ||
Transportation facilities | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 541,908 | 656,467 | ||
Reclassifications and internal transfers | 75,277 | 9,064 | ||
Additions | 31,668 | 36,667 | ||
Acquisition of subsidiaries | 17,443 | 3,410 | ||
Disposal of subsidiaries | (101) | (5,269) | ||
Disposals | (39,827) | (13,084) | ||
Depreciation | (116,807) | (145,287) | ||
Currency translation differences | 34 | (60) | ||
Property, plant and equipment at end of period | 509,595 | 541,908 | 656,467 | |
Property, plant and equipment | 541,908 | 656,467 | 656,467 | |
Transportation facilities | Gross | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 2,873,825 | |||
Property, plant and equipment at end of period | 2,538,835 | 2,873,825 | ||
Property, plant and equipment | 2,873,825 | 2,873,825 | ||
Transportation facilities | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (2,331,917) | |||
Property, plant and equipment at end of period | (2,029,240) | (2,331,917) | ||
Property, plant and equipment | (2,331,917) | (2,331,917) | ||
Office and other equipment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 129,625 | 100,202 | ||
Reclassifications and internal transfers | 5,149 | 11,439 | ||
Additions | 48,912 | 47,804 | ||
Acquisition of subsidiaries | 5,937 | 1,714 | ||
Disposal of subsidiaries | (53) | (2,114) | ||
Disposals | (3,347) | (1,123) | ||
Depreciation | (28,018) | (28,239) | ||
Currency translation differences | 27 | (58) | ||
Property, plant and equipment at end of period | 158,232 | 129,625 | 100,202 | |
Property, plant and equipment | 129,625 | 100,202 | 100,202 | |
Office and other equipment | Gross | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 561,597 | |||
Property, plant and equipment at end of period | 603,593 | 561,597 | ||
Property, plant and equipment | 561,597 | 561,597 | ||
Office and other equipment | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (431,972) | |||
Property, plant and equipment at end of period | (445,361) | (431,972) | ||
Property, plant and equipment | (431,972) | (431,972) | ||
Construction in progress | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 9,883,125 | 16,174,232 | ||
Reclassifications and internal transfers | (6,885,408) | (15,077,818) | ||
Transfer to intangible assets (note 5) | (525,216) | (76,179) | ||
Transfer to land use rights (note 8) | (382,242) | (396,398) | ||
Additions | 8,025,615 | 9,602,162 | ||
Acquisition of subsidiaries | 3,149,060 | 99,934 | ||
Disposal of subsidiaries | (8,893) | (108,479) | ||
Disposals | (275,391) | (334,329) | ||
Impairment loss on property, plant and equipment | (389) | |||
Property, plant and equipment at end of period | 12,980,261 | 9,883,125 | 16,174,232 | |
Property, plant and equipment | 9,883,125 | 16,174,232 | ¥ 16,174,232 | |
Construction in progress | Gross | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | 9,995,123 | |||
Property, plant and equipment at end of period | 13,092,648 | 9,995,123 | ||
Property, plant and equipment | 9,995,123 | 9,995,123 | ||
Construction in progress | Accumulated amortization and impairment | ||||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment at beginning of period | (111,998) | |||
Property, plant and equipment at end of period | (112,387) | (111,998) | ||
Property, plant and equipment | ¥ (111,998) | ¥ (111,998) |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Depreciation expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Depreciation and amortisation expense | |||||
Depreciation expenses | ¥ 7,499,322 | ¥ 6,554,775 | ¥ 6,590,248 | ||
Ownership certificates of buildings | |||||
Net carrying value | 95,627,577 | 90,371,571 | $ 15,445,185 | ¥ 106,193,369 | |
Interest attributable to the construction of property, plant and equipment | |||||
Interest expenses arising from borrowings attributable to the construction of property, plant and equipment | ¥ 518,000 | 344,000 | ¥ 414,000 | ||
Additional information | |||||
Carrying value of temporarily idle property, plant and equipment | 2,530,000 | 675,000 | |||
Property, plant and equipment | ¥ 5,799,013 | 4,168,239 | |||
Minimum | |||||
Interest attributable to the construction of property, plant and equipment | |||||
Capitalization rate during the year | 4.54% | 4.41% | 3.85% | ||
Maximum | |||||
Interest attributable to the construction of property, plant and equipment | |||||
Capitalization rate during the year | 7.00% | 8.00% | 6.00% | ||
Cost of sales | |||||
Depreciation and amortisation expense | |||||
Depreciation expenses | ¥ 7,291,380 | ¥ 6,387,773 | ¥ 6,399,010 | ||
General and administrative expenses | |||||
Depreciation and amortisation expense | |||||
Depreciation expenses | 201,337 | 160,076 | 181,708 | ||
Selling and distribution expenses | |||||
Depreciation and amortisation expense | |||||
Depreciation expenses | ¥ 6,605 | 6,926 | 9,530 | ||
Accumulated amortization and impairment | |||||
Ownership certificates of buildings | |||||
Net carrying value | (67,798,800) | (70,271,193) | |||
Buildings | |||||
Ownership certificates of buildings | |||||
Net carrying value | 32,288,223 | 27,918,175 | 38,849,351 | ||
Buildings | Accumulated amortization and impairment | |||||
Ownership certificates of buildings | |||||
Net carrying value | (16,702,332) | (17,771,643) | |||
Ownership certificates of buildings | |||||
Ownership certificates of buildings | |||||
Net carrying value | ¥ 6,942,000 | ¥ 5,639,000 | |||
Carrying value to total asset value (as a percent) | 0.0347 | 0.0281 | 0.0281 | ||
Machinery | |||||
Ownership certificates of buildings | |||||
Net carrying value | ¥ 52,784,696 | 45,522,495 | ¥ 53,695,930 | ||
Additional information | |||||
Fixed assets held under finance leases | 9,955,000 | 10,678,000 | |||
Machinery | Accumulated amortization and impairment | |||||
Ownership certificates of buildings | |||||
Net carrying value | (48,220,581) | (49,912,562) | |||
Construction in progress | |||||
Ownership certificates of buildings | |||||
Net carrying value | 9,883,125 | ¥ 16,174,232 | 12,980,261 | ||
Additional information | |||||
Fixed assets held under finance leases | 100,000 | 112,000 | |||
Construction in progress | Accumulated amortization and impairment | |||||
Ownership certificates of buildings | |||||
Net carrying value | (111,998) | (112,387) | |||
Machinery and construction in progress held under finance leases | Accumulated amortization and impairment | |||||
Additional information | |||||
Fixed assets held under finance leases | ¥ 1,908,000 | ¥ 2,011,000 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Impairment tests for property, plant and equipment (Details) - CGU - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | ||
Pre-tax and non-inflation rate that reflects specific risks related to CGUs as discount rates (as a percent) | 10.16% | 10.16% | |
Recoverable amounts for property, plant and equipment about to be disposed or abandoned, and impairment losses | ¥ 7 | ¥ 16 | ¥ 57 |
INVESTMENT PROPERTIES (Details)
INVESTMENT PROPERTIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Investment properties | ||||
Investment properties at beginning of period | ¥ 1,332,370 | ¥ 1,255,775 | ||
Transfer from property, plant and equipment and land use rights (note 6) (note 8) | 11,039 | 164,046 | ||
Disposals | (143,401) | (73,346) | ||
Transfer to property, plant and equipment (note 6) | (21,773) | |||
Depreciation | (22,229) | (14,105) | ¥ (1,426) | |
Investment properties at end of period | $ 168,134 | 1,156,006 | 1,332,370 | 1,255,775 |
Gross | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,370,477 | |||
Investment properties at end of period | 1,190,641 | 1,370,477 | ||
Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (38,107) | |||
Investment properties at end of period | (34,635) | (38,107) | ||
Buildings | ||||
Investment properties | ||||
Investment properties at beginning of period | 254,061 | 99,655 | ||
Transfer from property, plant and equipment and land use rights (note 6) (note 8) | 11,039 | 157,150 | ||
Transfer to property, plant and equipment (note 6) | (21,773) | |||
Depreciation | (7,353) | (2,744) | ||
Investment properties at end of period | 235,974 | 254,061 | 99,655 | |
Buildings | At fair values | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,208,000 | |||
Investment properties at end of period | 781,000 | 1,208,000 | ||
Buildings | Gross | ||||
Investment properties | ||||
Investment properties at beginning of period | 263,066 | |||
Investment properties at end of period | 251,626 | 263,066 | ||
Buildings | Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (9,005) | |||
Investment properties at end of period | (15,652) | (9,005) | ||
Ownership certificates of investment properties | ||||
Investment properties | ||||
Investment properties at beginning of period | 147,000 | |||
Investment properties at end of period | ¥ 68,000 | ¥ 147,000 | ||
Percentage of investment properties to total asset | 0.03% | 0.03% | 0.07% | |
Land use right | ||||
Investment properties | ||||
Investment properties at beginning of period | ¥ 1,078,309 | ¥ 1,156,120 | ||
Transfer from property, plant and equipment and land use rights (note 6) (note 8) | 6,896 | |||
Disposals | (143,401) | (73,346) | ||
Depreciation | (14,876) | (11,361) | ||
Investment properties at end of period | 920,032 | 1,078,309 | ¥ 1,156,120 | |
Land use right | At fair values | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,182,000 | |||
Investment properties at end of period | 1,287,000 | 1,182,000 | ||
Land use right | Gross | ||||
Investment properties | ||||
Investment properties at beginning of period | 1,107,411 | |||
Investment properties at end of period | 939,015 | 1,107,411 | ||
Land use right | Accumulated amortization and impairment | ||||
Investment properties | ||||
Investment properties at beginning of period | (29,102) | |||
Investment properties at end of period | ¥ (18,983) | ¥ (29,102) |
LAND USE RIGHTS AND LEASEHOLD_3
LAND USE RIGHTS AND LEASEHOLD LAND (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Operating leases : | ||||
Leases | $ 622,543 | ¥ 4,280,291 | ¥ 3,577,012 | |
Land use rights and leasehold land | ||||
Operating leases : | ||||
Leases | 4,280,291 | 3,577,012 | ¥ 3,198,047 | |
PRC | Land use rights and leasehold land | ||||
Operating leases : | ||||
Leases | 4,280,291 | 3,577,012 | ||
PRC | Land use rights and leasehold land | Less than 10 years | ||||
Operating leases : | ||||
Leases | 768,153 | 127,516 | ||
PRC | Land use rights and leasehold land | Between 10 to 50 years | ||||
Operating leases : | ||||
Leases | 3,393,547 | 3,331,557 | ||
PRC | Land use rights and leasehold land | Over 50 years | ||||
Operating leases : | ||||
Leases | ¥ 118,591 | ¥ 117,939 |
LAND USE RIGHTS AND LEASEHOLD_4
LAND USE RIGHTS AND LEASEHOLD LAND - Operating leases prepayments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Operating leases prepayments | ||||
As at January 1 | ¥ 3,577,012 | |||
Additions | 103,304 | ¥ 285,167 | ¥ 344,099 | |
Acquisition of a subsidiary | 1,893,300 | 188 | ||
Disposals | (11,168) | |||
Government grants | (113,949) | (109,564) | ||
Disposal of subsidiaries | (168) | (562) | ||
Amortization | (295,901) | (275,877) | (244,361) | |
As at December 31 | $ 622,543 | 4,280,291 | 3,577,012 | |
Land use rights and leasehold land | ||||
Operating leases prepayments | ||||
As at January 1 | 3,577,012 | 3,198,047 | ||
Additions | 2,838 | 59,215 | ||
Acquisition of a subsidiary | 460,638 | 31,833 | ||
Transfer from property, plant and equipment (note 6) | 382,242 | 396,398 | ||
Disposals | (6,712) | |||
Government grants | (34,174) | |||
Disposal of subsidiaries | (728) | (3,294) | ||
Transfer to investment properties | (6,896) | |||
Amortization | (107,537) | (91,579) | ||
As at December 31 | ¥ 4,280,291 | ¥ 3,577,012 | ¥ 3,198,047 |
LAND USE RIGHTS AND LEASEHOLD_5
LAND USE RIGHTS AND LEASEHOLD LAND - Notes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Note for land use rights and leasehold land | |||||
Amortization | ¥ 295,901 | ¥ 275,877 | ¥ 244,361 | ||
Land use rights | 3,577,012 | $ 622,543 | ¥ 4,280,291 | ||
Carrying amount of pledged intangible assets | 1,111,705 | 772,597 | |||
Certificates of land use rights | |||||
Note for land use rights and leasehold land | |||||
Land use rights | ¥ 516,000 | 687,000 | |||
Land parcels | |||||
Note for land use rights and leasehold land | |||||
Carrying value to total asset value (as a percent) | 0.34 | 0.26 | |||
Land use rights and leasehold land | |||||
Note for land use rights and leasehold land | |||||
Amortization | ¥ 107,537 | ¥ 91,579 | |||
Land use rights | 3,577,012 | ¥ 3,198,047 | 4,280,291 | ||
Carrying amount of pledged intangible assets | ¥ 177,000 | ¥ 328,000 |
INVESTMENTS IN JOINT VENTURES_3
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Movements in investments in joint ventures | |||
As at January 1 | ¥ 6,007,624 | ¥ 6,240,200 | |
Impairment | 0 | ||
As at December 31 | $ 493,542 | 3,393,349 | 6,007,624 |
Joint venture | |||
Movements in investments in joint ventures | |||
As at January 1 | 6,007,624 | 6,240,200 | |
Capital injections | 90,000 | 201,864 | |
A joint venture changed into a subsidiary (note 38 (k)) | (2,048,780) | (315,706) | |
A subsidiary changed into a joint venture | 11,980 | ||
Share of profits and losses for the year | (199,452) | 8,151 | |
Share of changes in reserves | (2,837) | (6,105) | |
Cash dividends declared | (236,253) | (132,760) | |
Impairment | (216,953) | ||
As at December 31 | ¥ 3,393,349 | ¥ 6,007,624 |
INVESTMENTS IN JOINT VENTURES_4
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Joint ventures not individually material (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Aggregate carrying amount of the Group's investments in joint ventures | ¥ 6,007,624 | $ 493,542 | ¥ 3,393,349 | ¥ 6,240,200 | |
Proportionate interests in the joint ventures' capital commitments | 0 | 0 | |||
Material contingent liabilities relating to the Group's interests in the joint ventures and the joint ventures themselves | 0 | 0 | |||
Aggregate joint ventures not individually material | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of the joint ventures' profits and losses for the year | ¥ (199,452) | 8,151 | |||
Share of the joint ventures' total comprehensive income | ¥ (199,452) | 8,151 | |||
Aggregate carrying amount of the Group's investments in joint ventures | ¥ 6,007,624 | ¥ 3,393,349 |
INVESTMENTS IN JOINT VENTURES_5
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Investments in associates (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Movements in investments in associates | |||
As at January 1 | ¥ 6,935,030 | ¥ 5,926,533 | |
As at December 31 | $ 925,527 | 6,363,462 | 6,935,030 |
Associates | |||
Movements in investments in associates | |||
As at January 1 | 6,935,030 | 5,926,533 | |
Capital injections | 315,300 | 857,317 | |
Deemed disposal of subsidiaries | 100,092 | ||
A subsidiary changed into an associate | 240,258 | ||
Associates changed into subsidiaries | (862,214) | ||
Disposal | (32,720) | ||
Share of profits and losses for the year | 39,335 | (165,249) | |
Cash dividends declared | (36,157) | (26,330) | |
Share of changes in reserves | 4,888 | 2,409 | |
As at December 31 | ¥ 6,363,462 | ¥ 6,935,030 |
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, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | |
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Investment in an associate | ¥ 535,610 | ||||
Aggregate carrying amount of the Group's investments in the associates | ¥ 6,935,030 | $ 925,527 | 6,363,462 | ¥ 5,926,533 | |
Associates | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Share of the associates' profits and losses | ¥ (39,335) | 165,249 | |||
Share of the associates' total comprehensive income | (4,888) | (2,409) | |||
Aggregate carrying amount of the Group's investments in the associates | 6,935,030 | 6,363,462 | ¥ 5,926,533 | ||
Aggregate associates that are not individually material | |||||
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES | |||||
Investment in an associate | 0 | 536,000 | |||
Share of the associates' profits and losses | 39,335 | (165,249) | |||
Share of the associates' total comprehensive income | ¥ 39,335 | (165,249) | |||
Aggregate carrying amount of the Group's investments in the associates | 6,935,030 | 6,363,462 | |||
Material contingent liabilities relating to the Group's interests in the associates and the associates themselves | ¥ 0 | ¥ 0 |
EQUITY INVESTMENTS DESIGNATED_3
EQUITY INVESTMENTS DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME/AVAILABLE-FOR-SALE FINANCIAL INVESTMENTS (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CNY (¥)item | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Equity investments designated at fair value through other comprehensive income | |||
Equity investment designated at fair value through other comprehensive income | ¥ 1,729,825 | ||
Non current portion | |||
Available-for-sale financial investments, non current | ¥ 1,928,201 | ||
Gross loss (gain) of available-for-sale investments recognized in other comprehensive income | (5,206) | ¥ 104,103 | |
Capital contribution commitment | 542,800 | 374,800 | |
Size industry investment fund | |||
Non current portion | |||
Capital contribution commitment | ¥ 3,300,000 | ||
Investment to fund | 1,848,000 | ||
Number of investments | item | 4 | ||
Number of associates | item | 2 | ||
Number of joint ventures | item | 2 | ||
Total capital contribution | ¥ 5,600,000 | ||
Capital contribution | 3,350,000 | ||
BOCOMM TRUST | |||
Non current portion | |||
Capital contribution commitment | 6,700,000 | ||
BOCOMM TRUST | Size industry investment fund | |||
Non current portion | |||
Capital contribution | 1,650,000 | ||
At fair values | |||
Equity investments designated at fair value through other comprehensive income | |||
Listed equity investments | 6,441 | ||
Unlisted investments | 1,723,384 | ||
Equity investment designated at fair value through other comprehensive income | ¥ 1,729,825 | ||
Non current portion | |||
Listed equity investments | 9,701 | ||
Other unlisted investments | 1,848,000 | ||
Available-for-sale financial investments, non current | 1,857,701 | ||
Stated at cost | |||
Non current portion | |||
Unlisted equity investments | 73,211 | ||
Available-for-sale financial investments, non current | 70,500 | ||
Stated at cost | Available-for-sale financial investments | Financial assets available-for-sale | |||
Non current portion | |||
Less: provision for impairment | ¥ (2,711) |
DEFERRED TAX - Assets (Details)
DEFERRED TAX - Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Movements in deferred tax assets: | |||
As at January 1, | ¥ 1,606,150 | ||
As at December 31, | $ 224,357 | 1,542,569 | ¥ 1,606,150 |
Temporary difference | |||
Movements in deferred tax assets: | |||
As at January 1, | 1,664,180 | 1,687,507 | |
Acquisition of subsidiaries | 8,094 | ||
(Charged)/credited to profit or loss | (75,664) | (18,901) | |
Disposal of subsidiaries | (4,426) | ||
As at December 31, | 1,596,610 | 1,664,180 | |
Provision for impairment | |||
Movements in deferred tax assets: | |||
As at January 1, | 525,382 | 553,716 | |
Acquisition of subsidiaries | 360 | ||
(Charged)/credited to profit or loss | (139,985) | (28,334) | |
As at December 31, | 385,757 | 525,382 | |
Accrued expenses | |||
Movements in deferred tax assets: | |||
As at January 1, | 264,209 | 207,651 | |
(Charged)/credited to profit or loss | (21,839) | 59,664 | |
Disposal of subsidiaries | (3,106) | ||
As at December 31, | 242,370 | 264,209 | |
Tax losses | |||
Movements in deferred tax assets: | |||
As at January 1, | 539,899 | 636,197 | |
(Charged)/credited to profit or loss | 76,338 | (94,978) | |
Disposal of subsidiaries | (1,320) | ||
As at December 31, | 616,237 | 539,899 | |
Unrealized profit at consolidation | |||
Movements in deferred tax assets: | |||
As at January 1, | 166,043 | 169,113 | |
(Charged)/credited to profit or loss | 3,833 | (3,070) | |
As at December 31, | 169,876 | 166,043 | |
Others | |||
Movements in deferred tax assets: | |||
As at January 1, | 168,647 | 120,830 | |
Acquisition of subsidiaries | 7,734 | ||
(Charged)/credited to profit or loss | 5,989 | 47,817 | |
As at December 31, | ¥ 182,370 | ¥ 168,647 |
DEFERRED TAX - Liabilities (Det
DEFERRED TAX - Liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Movements in deferred tax liabilities: | |||
As at January 1, | ¥ 993,742 | ||
As at December 31, | $ 263,662 | 1,812,805 | ¥ 993,742 |
Temporary difference | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,055,413 | 1,244,139 | |
Changes in accounting policies | 3,641 | ||
Exchange realignment | 1,353 | (1,830) | |
Credited to other comprehensive income | (3,769) | 11,180 | |
Acquisition of a subsidiaries | 822,229 | 40,706 | |
(Credited)/charged to profit or loss | (8,380) | (220,063) | |
As at December 31, | 1,866,846 | 1,055,413 | |
Temporary difference | Before change in accounting policy | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 1,051,772 | ||
As at December 31, | 1,051,772 | ||
Interest capitalization | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 52,934 | 61,166 | |
(Credited)/charged to profit or loss | (9,102) | (8,232) | |
As at December 31, | 43,832 | 52,934 | |
Fair value changes of financial assets | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 5,972 | 14,925 | |
Changes in accounting policies | 3,641 | ||
Credited to other comprehensive income | (3,769) | 11,180 | |
(Credited)/charged to profit or loss | 3,403 | (1,414) | |
As at December 31, | 5,606 | 5,972 | |
Fair value changes of financial assets | Before change in accounting policy | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 2,331 | ||
As at December 31, | 2,331 | ||
Depreciation and amortization | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 7,659 | 7,474 | |
(Credited)/charged to profit or loss | 24,830 | 185 | |
As at December 31, | 32,489 | 7,659 | |
Fair value adjustments arising from acquisition of subsidiaries | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 988,848 | 977,342 | |
Exchange realignment | 1,353 | (1,830) | |
Acquisition of a subsidiaries | 822,229 | 40,706 | |
(Credited)/charged to profit or loss | (27,511) | (27,370) | |
As at December 31, | ¥ 1,784,919 | 988,848 | |
Investment in a subsidiary | |||
Movements in deferred tax liabilities: | |||
As at January 1, | 183,232 | ||
(Credited)/charged to profit or loss | ¥ (183,232) |
DEFERRED TAX - Balances (Detail
DEFERRED TAX - Balances (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Analysis of the deferred tax balances | ||
Net deferred tax assets | ¥ 1,542,569 | ¥ 1,606,150 |
Net deferred tax liabilities | 1,812,805 | 993,742 |
Deferred tax assets not recognised | 2,634,000 | 4,337,000 |
Accumulated tax losses | 11,387,469 | 18,213,620 |
Deferred tax assets for deductible temporary differences | 1,660,000 | 1,434,000 |
Deductible temporary differences | ¥ 7,992,000 | ¥ 6,235,000 |
DEFERRED TAX - Unprovided tax l
DEFERRED TAX - Unprovided tax losses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Expiry profile of these unprovided tax losses | ||
Unprovided tax losses | ¥ 11,387,469 | ¥ 18,213,620 |
Within 1 year | ||
Expiry profile of these unprovided tax losses | ||
Unprovided tax losses | 7,689,663 | |
Past due for 1 to 2 years | ||
Expiry profile of these unprovided tax losses | ||
Unprovided tax losses | 6,753,096 | 7,650,084 |
2020 | ||
Expiry profile of these unprovided tax losses | ||
Unprovided tax losses | 711,878 | 711,878 |
2021 | ||
Expiry profile of these unprovided tax losses | ||
Unprovided tax losses | 975,081 | 975,081 |
2022 | ||
Expiry profile of these unprovided tax losses | ||
Unprovided tax losses | 1,211,002 | ¥ 1,186,914 |
2023 | ||
Expiry profile of these unprovided tax losses | ||
Unprovided tax losses | ¥ 1,736,412 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Financial assets | |||
Other long-term receivables | ¥ 204,718 | ¥ 261,156 | |
Prepayment for mining rights | 808,736 | 801,657 | |
Long-term prepaid expenses | 667,772 | 484,536 | |
Deferred losses for sales and leaseback transactions | 1,164,782 | 1,234,376 | |
Others | 1,596,636 | 739,167 | |
Total non-financial assets | 4,237,926 | 3,259,736 | |
Total other non-current assets | $ 646,156 | ¥ 4,442,644 | ¥ 3,520,892 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Inventories | ||||
Total inventories | $ 2,975,735 | ¥ 20,459,668 | ¥ 20,547,556 | |
Gross | ||||
Inventories | ||||
Raw materials | 8,362,697 | 7,619,265 | ||
Work-in-progress | 8,684,506 | 8,193,656 | ||
Finished goods | 3,280,641 | 4,417,202 | ||
Spare parts | 879,794 | 731,621 | ||
Packaging materials and others | 63,227 | 43,064 | ||
Total inventories | 21,270,865 | 21,004,808 | ||
Provision for impairment | ||||
Inventories | ||||
Total inventories | ¥ (811,197) | ¥ (457,252) | ¥ (719,560) |
INVENTORIES - Movements in the
INVENTORIES - Movements in the provision for impairment of inventories (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Movements in the provision for impairment of inventories | ||||
As at January 1, | ¥ (20,547,556) | |||
Written off upon sales of inventories | (353,945) | ¥ 154,294 | ¥ 1,662,388 | |
As at December 31, | $ (2,975,735) | (20,459,668) | (20,547,556) | |
Inventories pledged for bank and other borrowings | 0 | 0 | ||
Provision for impairment | ||||
Movements in the provision for impairment of inventories | ||||
As at January 1, | 457,252 | 719,560 | ||
Provision for impairment of inventories | (2,413,098) | (194,588) | ||
Reversal arising from increase in net realisable value | (165,510) | (89,318) | ||
Written off upon sales of inventories | (1,893,643) | (259,564) | ||
Disposal of subsidiaries | (108,014) | |||
As at December 31, | ¥ 811,197 | ¥ 457,252 | ¥ 719,560 |
TRADE AND NOTES RECEIVABLES (De
TRADE AND NOTES RECEIVABLES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | ¥ 5,206,050 | ¥ 4,286,075 | |
Notes receivable | 2,894,482 | 3,722,862 | |
Total trade and notes receivables | $ 1,178,174 | 8,100,532 | 8,008,937 |
Minimum | |||
TRADE AND NOTES RECEIVABLES | |||
Term of trade receivables | 3 months | ||
Maximum | |||
TRADE AND NOTES RECEIVABLES | |||
Term of trade receivables | 12 months | ||
Joint ventures | |||
TRADE AND NOTES RECEIVABLES | |||
Total trade and notes receivables | 820,000 | 591,000 | |
Associates | |||
TRADE AND NOTES RECEIVABLES | |||
Total trade and notes receivables | 7,000 | 97,000 | |
Exchange notes receivable | |||
TRADE AND NOTES RECEIVABLES | |||
Pledged notes receivables | 934,000 | ||
Bank and other borrowings | |||
TRADE AND NOTES RECEIVABLES | |||
Pledged notes receivables | 82,000 | ||
Pledged trade receivables | 22,000 | ||
USD | |||
TRADE AND NOTES RECEIVABLES | |||
Total trade and notes receivables | 1,403,000 | 1,094,000 | |
Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | 5,865,311 | 4,832,177 | |
Total trade and notes receivables | 8,759,793 | 8,555,039 | |
Provision for impairment | |||
TRADE AND NOTES RECEIVABLES | |||
Trade receivables | (659,261) | (546,102) | |
Total trade and notes receivables | ¥ (659,261) | ¥ (546,102) |
TRADE AND NOTES RECEIVABLES - A
TRADE AND NOTES RECEIVABLES - Ageing analysis of trade and notes receivables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | $ 1,178,174 | ¥ 8,100,532 | ¥ 8,008,937 |
Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 8,759,793 | 8,555,039 | |
Gross | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 6,212,537 | 6,289,931 | |
Gross | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 906,302 | 516,359 | |
Gross | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 158,162 | 338,334 | |
Gross | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 1,482,792 | 1,410,415 | |
Provision for impairment | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ (659,261) | ¥ (546,102) |
TRADE AND NOTES RECEIVABLES - C
TRADE AND NOTES RECEIVABLES - Credit risk exposure (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | $ 1,178,174 | ¥ 8,100,532 | ¥ 8,008,937 |
Trade receivables | 5,206,050 | 4,286,075 | |
Exposure to credit risk on loan commitments and financial guarantee contracts | 659,261 | ||
Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 8,759,793 | 8,555,039 | |
Trade receivables | 5,865,311 | 4,832,177 | |
Gross | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 6,212,537 | 6,289,931 | |
Gross | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 906,302 | 516,359 | |
Gross | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 158,162 | 338,334 | |
Gross | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 1,482,792 | ¥ 1,410,415 | |
Stage 3 | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 212,964 | ||
Stage 3 | Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 4,246,067 | ||
Alumina and primary aluminum | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 384,527 | ||
Alumina and primary aluminum | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3,696 | ||
Expected credit loss rate | 0.92% | 0.92% | |
Alumina and primary aluminum | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 6,179 | ||
Expected credit loss rate | 11.08% | 11.08% | |
Alumina and primary aluminum | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 14,893 | ||
Expected credit loss rate | 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 | ¥ 359,759 | ||
Expected credit loss rate | 94.87% | 94.87% | |
Alumina and primary aluminum | Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 853,216 | ||
Alumina and primary aluminum | Gross | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 401,691 | ||
Alumina and primary aluminum | Gross | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 55,766 | ||
Alumina and primary aluminum | Gross | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 16,546 | ||
Alumina and primary aluminum | Gross | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 379,213 | ||
Energy | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 13,977 | ||
Energy | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3,388 | ||
Expected credit loss rate | 3.83% | 3.83% | |
Energy | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 685 | ||
Expected credit loss rate | 21.29% | 21.29% | |
Energy | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3,688 | ||
Expected credit loss rate | 23.92% | 23.92% | |
Energy | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 6,216 | ||
Expected credit loss rate | 48.91% | 48.91% | |
Energy | Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 119,806 | ||
Energy | Gross | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 88,462 | ||
Energy | Gross | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 3,217 | ||
Energy | Gross | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 15,417 | ||
Energy | Gross | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 12,710 | ||
Trading | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 4,522 | ||
Trading | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 662 | ||
Expected credit loss rate | 0.14% | 0.14% | |
Trading | Past due for 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% | |
Trading | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3 | ||
Expected credit loss rate | 4.05% | 4.05% | |
Trading | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3,787 | ||
Expected credit loss rate | 19.50% | 19.50% | |
Trading | Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 496,795 | ||
Trading | Gross | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 473,153 | ||
Trading | Gross | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 4,146 | ||
Trading | Gross | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 74 | ||
Trading | Gross | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 19,422 | ||
Corporate and other operating segments | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | 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 | ¥ 6,539 | ||
Expected credit loss rate | 6.02% | 6.02% | |
Corporate and other operating segments | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 7,767 | ||
Expected credit loss rate | 70.78% | 70.78% | |
Corporate and other operating segments | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 3,823 | ||
Expected credit loss rate | 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 | ¥ 25,142 | ||
Expected credit loss rate | 97.45% | 97.45% | |
Corporate and other operating segments | Gross | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 149,427 | ||
Corporate and other operating segments | Gross | Within 1 year | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 108,627 | ||
Corporate and other operating segments | Gross | Past due for 1 to 2 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 10,974 | ||
Corporate and other operating segments | Gross | 2020 | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | 4,026 | ||
Corporate and other operating segments | Gross | Over 3 years | |||
TRADE AND NOTES RECEIVABLES | |||
Trade and notes receivables | ¥ 25,800 |
TRADE AND NOTES RECEIVABLES -_2
TRADE AND NOTES RECEIVABLES - Ageing analysis of trade receivables not individually nor collectively (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | $ 1,178,174 | ¥ 8,100,532 | ¥ 8,008,937 |
Associates | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 7,000 | 97,000 | |
Not past due | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade receivables | 2,384,268 | ||
Individually impaired receivables | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 3,934,116 | ||
Trade receivables | 351,959 | ||
Not individually nor collectively | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 1,549,848 | ||
Past due for 1 year | Not individually nor collectively | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 470,008 | ||
Past due for 1 to 2 years | Not individually nor collectively | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 298,008 | ||
Past due for over 2 years | Not individually nor collectively | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 781,832 | ||
Gross | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 8,759,793 | 8,555,039 | |
Gross | Individually impaired receivables | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade receivables | 898,061 | ||
Gross | Within 1 year | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 6,212,537 | 6,289,931 | |
Gross | Within 1 year | Individually impaired receivables | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade receivables | 182,801 | ||
Gross | Past due for 1 to 2 years | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 906,302 | 516,359 | |
Gross | Past due for 1 to 2 years | Individually impaired receivables | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade receivables | 46,351 | ||
Gross | 2020 | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 158,162 | 338,334 | |
Gross | 2020 | Individually impaired receivables | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade receivables | 40,325 | ||
Gross | Over 3 years | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | 1,482,792 | 1,410,415 | |
Gross | Over 3 years | Individually impaired receivables | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade receivables | 628,584 | ||
Provision for impairment | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade and notes receivables | ¥ (659,261) | (546,102) | |
Provision for impairment | Individually impaired receivables | |||
Ageing analysis of trade receivables were past due but not impaired | |||
Trade receivables | ¥ (546,102) |
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, 2018 | Dec. 31, 2017 |
Reconciliation of changes in other provisions | |||
Effect of adoption of IFRS 9 | ¥ (139,436) | ||
At beginning of year | ¥ 46,699,433 | ||
Carrying value of derecognized discounted notes receivable | ¥ 29,273,000 | 24,474,000 | |
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 | 444,000 | 227,000 | |
Gains or losses recognised from the continuing involvement | 0 | ||
Provision for impairment | |||
Reconciliation of changes in other provisions | |||
As at January 1, | ¥ 546,102 | 546,102 | 507,593 |
Effect of adoption of IFRS 9 | 112,407 | ||
At beginning of year | 658,509 | 507,593 | |
Provision for impairment | 64,544 | 47,953 | |
Written off | (33,469) | (15,341) | |
Reversal | (20,466) | (7,206) | |
Others (Note) | (9,857) | 13,103 | |
As at the December 31, | ¥ 659,261 | ¥ 546,102 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Financial assets | |||
Deposits paid to suppliers | ¥ 317,946 | ¥ 756,748 | |
Dividends receivable | 47,167 | 267,331 | |
Receivables from other revenue | 693,039 | 575,650 | |
Entrusted loans and loans receivable from third parties | 1,645,205 | 1,615,429 | |
Entrusted loans and loans receivable from related parties | 1,297,892 | 2,459,883 | |
Receivables from disposal of Guizhou Branch's aluminum properties | 1,881,513 | 1,320,488 | |
Interest receivables | 40,936 | 144,473 | |
Recoverable reimbursement for freight charges | 185,866 | 13,944 | |
Other financial assets | 530,029 | 1,006,723 | |
Financial assets included in other current assets | 6,639,593 | 8,160,669 | |
Financial assets included in other current assets, net of provision for impairment | 4,875,525 | 6,487,547 | |
Receivable of governments grants | 58,455 | ||
Receivable of value-added tax refund | 1,063 | ||
Advances to employees | 23,744 | 46,890 | |
Deductible input value added tax receivables | 2,187,202 | 2,411,495 | |
Prepaid income tax | 162,103 | 64,557 | |
Prepayments to related parties for purchases | 586,312 | 62,724 | |
Prepayments to suppliers for purchases and others | 963,870 | 890,958 | |
Others | 169,881 | 113,146 | |
Other current assets, excluded financial assets | 4,151,567 | 3,590,833 | |
Other current assets, excluded financial assets, net of provision for impairment | 4,147,428 | 3,586,678 | |
Total other current assets | $ 1,312,334 | 9,022,953 | 10,074,225 |
USD | |||
Financial assets | |||
Other receivables | 48,000 | ||
HKD | |||
Financial assets | |||
Other receivables | 100 | ||
RMB | |||
Financial assets | |||
Other financial assets | 161,000 | ||
Other current assets | |||
Financial assets | |||
Less: provision for impairment | (1,764,068) | (1,673,122) | |
Less: provision for impairment | ¥ (4,139) | ¥ (4,155) |
OTHER CURRENT ASSETS - Analysis
OTHER CURRENT ASSETS - Analysis of financial assets included in other current assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Financial assets included in other current assets | ¥ 6,639,593 | ¥ 8,160,669 |
Financial assets included in other current assets, net of provision for impairment | 4,875,525 | 6,487,547 |
Within 1 year | ||
Disclosure of financial assets [line items] | ||
Financial assets included in other current assets | 1,114,811 | 2,582,172 |
Past due for 1 to 2 years | ||
Disclosure of financial assets [line items] | ||
Financial assets included in other current assets | 1,653,822 | 1,016,290 |
2020 | ||
Disclosure of financial assets [line items] | ||
Financial assets included in other current assets | 449,003 | 1,689,050 |
Over 3 years | ||
Disclosure of financial assets [line items] | ||
Financial assets included in other current assets | 3,421,957 | 2,873,157 |
Other current assets | ||
Disclosure of financial assets [line items] | ||
Less: provision for impairment | ¥ (1,764,068) | ¥ (1,673,122) |
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, 2018 | Dec. 31, 2017 |
Provision for impairment of other current assets | |||
Effect of adoption of IFRS 9 | ¥ (139,436) | ||
At beginning of year | ¥ 46,699,433 | ||
Impairment on other current assets | Other current assets | |||
Provision for impairment of other current assets | |||
As at January 1, | ¥ 1,677,277 | ¥ 1,677,277 | 1,672,316 |
Effect of adoption of IFRS 9 | 38,502 | ||
At beginning of year | 1,715,779 | 1,672,316 | |
Provision for impairment | 65,494 | 29,483 | |
Write off | (6,117) | (10,926) | |
Reversal | (1,731) | (9,531) | |
Others | (5,218) | (4,065) | |
As at December 31, | ¥ 1,768,207 | ¥ 1,677,277 |
OTHER CURRENT ASSETS - Impairme
OTHER CURRENT ASSETS - Impairment under IFRS 9 (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets at amortized cost and stages for measurement of ECLs | ||
Exposure to credit risk on loan commitments and financial guarantee contracts | ¥ 659,261 | |
Other current assets, excluded financial assets | 4,151,567 | ¥ 3,590,833 |
Other current assets, excluded financial assets, net of provision for impairment | 4,147,428 | ¥ 3,586,678 |
Stage 3 | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Exposure to credit risk on loan commitments and financial guarantee contracts | 212,964 | |
Impaired financial assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets, net of provision for impairment | 1,764,068 | |
Impaired financial assets | Gross | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets, net of provision for impairment | 6,639,593 | |
Impaired financial assets | Within 1 year | 12-month expected credit losses | Gross | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | 1,098,455 | |
Impaired financial assets | Past due for 1 to 2 years | Lifetime expected credit losses | Stage 2 | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | 88,974 | |
Impaired financial assets | Past due for 1 to 2 years | Lifetime expected credit losses | Stage 2 | Gross | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | 3,744,612 | |
Impaired financial assets | 2020 | Lifetime expected credit losses | Stage 3 | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | 1,675,094 | |
Impaired financial assets | 2020 | Lifetime expected credit losses | Stage 3 | Gross | Other current assets | ||
Financial assets at amortized cost and stages for measurement of ECLs | ||
Other current assets, excluded financial assets | ¥ 1,796,526 |
OTHER CURRENT ASSETS - Impair_2
OTHER CURRENT ASSETS - Impairment under IAS 39 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Other current assets | $ 1,312,334 | ¥ 9,022,953 | ¥ 10,074,225 | |
Related parties | Past due but not impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Past due but not impaired financial assets due from the Group's related parties | 1,545 | |||
Impairment on other current assets | Other current assets | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Other current assets | 2,652,729 | |||
Impairment on other current assets | Not past due | Other current assets | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Other current assets | 3,695,813 | |||
Impairment on other current assets | Not impaired | Other current assets | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Other current assets | 6,348,542 | |||
Impairment on other current assets | Within 1 year | Past due but not impaired | Other current assets | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Other current assets | ¥ 1,214,515 | |||
Impairment on other current assets | Past due for 1 to 2 years | Past due but not impaired | Other current assets | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Other current assets | 364,953 | |||
Impairment on other current assets | Past due for over 2 years | Past due but not impaired | Other current assets | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Other current assets | ¥ 1,073,261 |
CASH AND CASH EQUIVALENTS AND_3
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS | ||||||
Restricted cash | ¥ 2,165,288 | ¥ 2,168,192 | ||||
Cash and cash equivalents | $ 2,782,438 | 19,130,652 | $ 4,048,559 | 27,835,866 | ¥ 23,848,344 | ¥ 20,779,604 |
Total cash and cash equivalents, and cash and cash equivalents restricted | ¥ 21,295,940 | ¥ 30,004,058 |
CASH AND CASH EQUIVALENTS AND_4
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND TIME DEPOSITS - Bank balances and cash on hand of the group (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Bank balances and cash on hand of the group | ||
Total cash and cash equivalents, and cash and cash equivalents restricted | ¥ 21,295,940 | ¥ 30,004,058 |
RMB | ||
Bank balances and cash on hand of the group | ||
Total cash and cash equivalents, and cash and cash equivalents restricted | 18,026,082 | 26,949,057 |
USD | ||
Bank balances and cash on hand of the group | ||
Total cash and cash equivalents, and cash and cash equivalents restricted | 3,256,625 | 3,045,228 |
HKD | ||
Bank balances and cash on hand of the group | ||
Total cash and cash equivalents, and cash and cash equivalents restricted | 8,321 | 7,029 |
EUR | ||
Bank balances and cash on hand of the group | ||
Total cash and cash equivalents, and cash and cash equivalents restricted | 371 | 56 |
AUD | ||
Bank balances and cash on hand of the group | ||
Total cash and cash equivalents, and cash and cash equivalents restricted | 2,552 | ¥ 2,688 |
IDR | ||
Bank balances and cash on hand of the group | ||
Total cash and cash equivalents, and cash and cash equivalents restricted | ¥ 1,989 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | Feb. 25, 2019shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥)¥ / sharesshares | Jan. 01, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Jan. 01, 2016CNY (¥) |
SHARE CAPITAL | ||||||||
Number of ordinary shares, authorized | 14,903,798,236 | 14,903,798,236 | 14,903,798,236 | |||||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | ||||||
Equity | $ 9,842,078 | ¥ 67,669,202 | ¥ 65,603,160 | ¥ 65,742,596 | ¥ 55,969,188 | ¥ 55,969,188 | ¥ 52,175,188 | |
Number of ordinary shares, issued | 2,118,874,715 | |||||||
Number of ordinary shares, outstanding | 14,903,798,236 | 14,903,798,236 | 14,903,798,236 | |||||
Share capital | ||||||||
SHARE CAPITAL | ||||||||
Number of ordinary shares, issued | 14,903,798,236 | 14,903,798,236 | 14,903,798,236 |
RESERVES (Details)
RESERVES (Details) ¥ in Millions | Jan. 31, 2018CNY (¥)item | Dec. 31, 2018CNY (¥) | Feb. 25, 2019shares |
RESERVES | |||
Decrease of share premium | ¥ 444 | ||
Number of investors who sold their shares | item | 8 | ||
Number of shares issued | shares | 2,118,874,715 | ||
Red Cliff Carbon Co., Ltd | |||
RESERVES | |||
Ownership interest | 77.65% | ||
Harbin Bingdong Light Logistics Co., Ltd | |||
RESERVES | |||
Ownership interest | 51.00% | ||
Target Companies | |||
RESERVES | |||
Consideration transferred | ¥ 2,100 | ||
Fair value of investment | ¥ 12,700 | ||
Carrying values of the Transferors' non-controlling interests derecognized, and were transferred to capital reserve | ¥ 10,700 |
INTEREST BEARING LOANS AND BO_3
INTEREST BEARING LOANS AND BORROWINGS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Long-term loans and borrowings | |||
Finance lease payables | ¥ 4,081,270 | ¥ 5,607,570 | |
Long-term loans and borrowings | 60,316,871 | 61,809,365 | |
Current portion of finance lease payables | (2,328,358) | (2,115,644) | |
Current portion of medium-term bonds and long-term bonds | (396,727) | (12,492,378) | |
Current portion of long-term bank and other loans | (3,384,400) | (6,911,640) | |
Non-current portion of long-term loans and borrowings | $ 7,884,137 | 54,207,386 | 40,289,703 |
Bank and other loans | |||
Long-term loans and borrowings | |||
Long-term loans and borrowings | 46,140,740 | 40,504,834 | |
Secured | |||
Long-term loans and borrowings | |||
Long-term loans and borrowings | 12,608,727 | 14,716,175 | |
Guaranteed | |||
Long-term loans and borrowings | |||
Long-term loans and borrowings | 3,040,400 | 3,191,277 | |
Unsecured | |||
Long-term loans and borrowings | |||
Long-term loans and borrowings | 30,491,613 | 22,597,382 | |
Medium-term notes and bonds and long-term bonds | |||
Long-term loans and borrowings | |||
Long-term loans and borrowings | 10,094,861 | 15,696,961 | |
Unsecured | |||
Long-term loans and borrowings | |||
Long-term loans and borrowings | ¥ 10,094,861 | ¥ 15,696,961 |
INTEREST BEARING LOANS AND BO_4
INTEREST BEARING LOANS AND BORROWINGS - Short-term loans and borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Short-term loans and borrowings | |||
Short-term bonds, unsecured | ¥ 500,000 | ¥ 3,601,573 | |
Gold leasing arrangements | 1,607,905 | 6,818,393 | |
Current portion of finance lease payables | 2,328,358 | 2,115,644 | |
Current portion of medium-term notes | 396,727 | 12,492,378 | |
Current portion of long-term bank and other loans | 3,384,400 | 6,911,640 | |
Short-term borrowings and current portion of long-term loans and borrowings | $ 6,910,564 | 47,513,582 | 62,981,070 |
Bank and other loans | |||
Short-term loans and borrowings | |||
Short-term borrowings and current portion of long-term loans and borrowings | 39,296,192 | 31,041,442 | |
Secured | |||
Short-term loans and borrowings | |||
Short-term borrowings and current portion of long-term loans and borrowings | 1,220,680 | 1,362,000 | |
Guaranteed | |||
Short-term loans and borrowings | |||
Short-term borrowings and current portion of long-term loans and borrowings | 240,000 | 150,000 | |
Unsecured | |||
Short-term loans and borrowings | |||
Short-term borrowings and current portion of long-term loans and borrowings | ¥ 37,835,512 | ¥ 29,529,442 |
INTEREST BEARING LOANS AND BO_5
INTEREST BEARING LOANS AND BORROWINGS - Other information (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
JPY | ||
OTHER EQUITY INSTRUMENTS | ||
Loans and borrowings | ¥ 19 | ¥ 21 |
USD | ||
OTHER EQUITY INSTRUMENTS | ||
Loans and borrowings | 3,984 | 1,860 |
Joint ventures | ||
OTHER EQUITY INSTRUMENTS | ||
Loans and borrowings | 190 | |
Shandong Aluminum, Shanxi Aluminum Plant and China Great Wall Aluminum Corporation | ||
OTHER EQUITY INSTRUMENTS | ||
Loans and borrowings | ¥ 4,373 | ¥ 3,330 |
INTEREST BEARING LOANS AND BO_6
INTEREST BEARING LOANS AND BORROWINGS - Maturity of long-term bank and other loans (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term bank and other loans, including current portion | ||
Maturity of long-term bank and other loans | ||
Total of long-term bank and other loans | ¥ 46,140,740 | ¥ 40,504,834 |
Weighted average annual interest rate on long-term bank and other loans | 4.78% | 4.97% |
Long-term bank and other loans, including current portion | Within 1 year | ||
Maturity of long-term bank and other loans | ||
Total of long-term bank and other loans | ¥ 3,384,400 | ¥ 6,911,640 |
Long-term bank and other loans, including current portion | Past due for 1 to 2 years | ||
Maturity of long-term bank and other loans | ||
Total of long-term bank and other loans | 7,377,956 | 5,174,015 |
Long-term bank and other loans, including current portion | Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Total of long-term bank and other loans | 16,593,587 | 8,673,794 |
Long-term bank and other loans, including current portion | After 5 years | ||
Maturity of long-term bank and other loans | ||
Total of long-term bank and other loans | 18,784,797 | 19,745,385 |
Loans from banks and other financial institutions | ||
Maturity of long-term bank and other loans | ||
Loans from banks and other financial institutions | 46,121,547 | 40,479,988 |
Loans from banks and other financial institutions | Within 1 year | ||
Maturity of long-term bank and other loans | ||
Loans from banks and other financial institutions | 3,382,325 | 6,905,000 |
Loans from banks and other financial institutions | Past due for 1 to 2 years | ||
Maturity of long-term bank and other loans | ||
Loans from banks and other financial institutions | 7,375,557 | 5,171,738 |
Loans from banks and other financial institutions | Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Loans from banks and other financial institutions | 16,586,390 | 8,666,967 |
Loans from banks and other financial institutions | After 5 years | ||
Maturity of long-term bank and other loans | ||
Loans from banks and other financial institutions | 18,777,275 | 19,736,283 |
Other loans | ||
Maturity of long-term bank and other loans | ||
Other loans | 19,193 | 24,846 |
Other loans | Within 1 year | ||
Maturity of long-term bank and other loans | ||
Other loans | 2,075 | 6,640 |
Other loans | Past due for 1 to 2 years | ||
Maturity of long-term bank and other loans | ||
Other loans | 2,399 | 2,277 |
Other loans | Between 2 and 5 years | ||
Maturity of long-term bank and other loans | ||
Other loans | 7,197 | 6,827 |
Other loans | After 5 years | ||
Maturity of long-term bank and other loans | ||
Other loans | ¥ 7,522 | ¥ 9,102 |
INTEREST BEARING LOANS AND BO_7
INTEREST BEARING LOANS AND BORROWINGS - Medium-term and long-term notes and bonds and private placement notes (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Medium-term and long-term notes and bonds | ||
Outstanding long-term and medium-term bonds | ¥ 60,316,871 | ¥ 61,809,365 |
Medium-term notes and bonds and long-term bonds | ||
Medium-term and long-term notes and bonds | ||
Outstanding long-term and medium-term bonds | ¥ 10,094,861 | 15,696,961 |
2015 medium-term 5.53% note | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 5.53% | |
Outstanding long-term and medium-term bonds | 2,999,030 | |
2015 medium-term 5.01% note | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 5.01% | |
Outstanding long-term and medium-term bonds | 1,496,503 | |
2013 medium-term 5.99% note | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 5.99% | |
Outstanding long-term and medium-term bonds | 2,999,211 | |
2015 medium-term 6.11% note | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 6.11% | |
Outstanding long-term and medium-term bonds | 2,999,359 | |
2015 medium-term 6.08% note | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 6.08% | |
Outstanding long-term and medium-term bonds | 1,998,275 | |
2016 private placement 5.12% note | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 5.12% | |
Outstanding long-term and medium-term bonds | ¥ 396,727 | ¥ 3,204,583 |
2018 medium-term 5.84% note | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 5.84% | |
Outstanding long-term and medium-term bonds | ¥ 1,986,418 | |
2018 medium-term 4.66% bonds | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 4.66% | |
Outstanding long-term and medium-term bonds | ¥ 1,097,003 | |
2018 medium-term 5.06% bonds | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 5.06% | |
Outstanding long-term and medium-term bonds | ¥ 897,820 | |
2018 medium-term 4.30% bonds | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 4.30% | |
Outstanding long-term and medium-term bonds | ¥ 1,395,970 | |
2018 medium-term 4.57% bonds | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 4.57% | |
Outstanding long-term and medium-term bonds | ¥ 1,595,311 | |
2018 US dollar medium-term 5.25% bonds | ||
Medium-term and long-term notes and bonds | ||
Interest rate (as a percent) | 5.25% | |
Outstanding long-term and medium-term bonds | ¥ 2,725,612 |
INTEREST BEARING LOANS AND BO_8
INTEREST BEARING LOANS AND BORROWINGS - Short-term bank, other loans and short-term bonds (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term bonds | ||
Outstanding short-term borrowings | ¥ 500,000 | ¥ 3,601,573 |
Short-term bank and other loans | ||
Short-term bonds | ||
Effective interest rate on short-term borrowings | 4.52% | 4.43% |
Short-term bonds | ||
Short-term bonds | ||
Outstanding short-term borrowings | ¥ 500,000 | ¥ 3,601,573 |
2017 short-term 4.30% bonds | ||
Short-term bonds | ||
Effective interest rate on short-term borrowings | 4.30% | |
Outstanding short-term borrowings | ¥ 3,101,573 | |
2017 short-term 4.90% bonds | ||
Short-term bonds | ||
Effective interest rate on short-term borrowings | 4.90% | |
Outstanding short-term borrowings | ¥ 500,000 | |
2018 Ningxia short-term 5.30% bonds | ||
Short-term bonds | ||
Effective interest rate on short-term borrowings | 5.30% | |
Outstanding short-term borrowings | ¥ 500,000 |
INTEREST BEARING LOANS AND BO_9
INTEREST BEARING LOANS AND BORROWINGS - Guaranteed interest-bearing loans and borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | ¥ 659,261 | |
Long-term loans | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 3,040,400 | ¥ 3,191,277 |
Long-term loans | Lanzhou Aluminum Factory | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 4,000 | |
Long-term loans | Ningxia Energy | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 892,400 | 1,020,400 |
Long-term loans | Yinxing Energy | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 70,000 | 91,000 |
Long-term loans | Baotou Aluminum Co. Ltd and Baotou Communications Investment Group Co. Ltd | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 1,600,000 | 1,600,000 |
Long-term loans | The Company and Hangzhou Jinjiang Group Co. Ltd | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 246,000 | 475,877 |
Long-term loans | Qingzhen Industrial Investment Co., Ltd.*("Qingzhen Investment") | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 116,000 | |
Long-term loans | Guizhou Industrial Investment Group Co., Ltd.*("Guizhou Investment") | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 116,000 | |
Short-term loans | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 240,000 | 150,000 |
Short-term loans | Ningxia Energy | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 70,000 | |
Short-term loans | Chalco Shandong | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | ¥ 80,000 | |
Short-term loans | China Great Wall Aluminum Co., Ltd | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | 40,000 | |
Short-term loans | Hangzhou Jinjiang, Qingzhen Investment and Guizhou Investment | ||
Guaranteed interest-bearing loans and borrowings | ||
Guarantees received | ¥ 200,000 |
INTEREST BEARING LOANS AND B_10
INTEREST BEARING LOANS AND BORROWINGS - Gold leasing agreements (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Gold leasing agreements | ||||
Proceeds from a gold leasing arrangement | $ 337,882 | ¥ 2,323,105 | ¥ 7,804,083 | ¥ 3,000,000 |
The Banks | ||||
Gold leasing agreements | ||||
Proceeds from a gold leasing arrangement | ¥ 2,323,000 | ¥ 7,804,000 | ||
Minimum | The Banks | ||||
Gold leasing agreements | ||||
Lease agreement term | 6 months | 6 months | ||
Annual lease fee rates (as a percent) | 4.10% | 4.10% | ||
Maximum | The Banks | ||||
Gold leasing agreements | ||||
Lease agreement term | 12 months | 12 months | ||
Annual lease fee rates (as a percent) | 4.50% | 4.50% | ||
Short-term loans | Fixed interest rate | Minimum | ||||
Gold leasing agreements | ||||
Interest rate (as a percent) | 4.10% | 4.10% | ||
Short-term loans | Fixed interest rate | Maximum | ||||
Gold leasing agreements | ||||
Interest rate (as a percent) | 4.50% | 4.50% |
FINANCE LEASE PAYABLES (Details
FINANCE LEASE PAYABLES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCE LEASE PAYABLES | ||
Total minimum lease payments | ¥ 4,401,097 | ¥ 6,098,467 |
Future finance charges | (319,827) | (490,897) |
Total net finance lease payables | 4,081,270 | 5,607,570 |
Portion classified as current liabilities | (2,328,358) | (2,115,644) |
Long-term finance lease payables | ¥ 1,752,912 | 3,491,926 |
Minimum | ||
FINANCE LEASE PAYABLES | ||
Lease term | 1 year | |
Maximum | ||
FINANCE LEASE PAYABLES | ||
Lease term | 6 years | |
Within 1 year | ||
FINANCE LEASE PAYABLES | ||
Total minimum lease payments | ¥ 2,518,653 | 2,371,917 |
Total net finance lease payables | 2,328,358 | 2,115,644 |
Past due for 1 to 2 years | ||
FINANCE LEASE PAYABLES | ||
Total minimum lease payments | 1,161,490 | 1,762,618 |
Total net finance lease payables | 1,075,050 | 1,606,571 |
In the third to fifth years, inclusive | ||
FINANCE LEASE PAYABLES | ||
Total minimum lease payments | 707,716 | 1,890,329 |
Total net finance lease payables | 664,889 | 1,817,506 |
After 5 years | ||
FINANCE LEASE PAYABLES | ||
Total minimum lease payments | 13,238 | 73,603 |
Total net finance lease payables | ¥ 12,973 | ¥ 67,849 |
FINANCE LEASE PAYABLES - Sale a
FINANCE LEASE PAYABLES - Sale and leaseback transactions with related parties (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
FINANCE LEASE PAYABLES | ||
Losses on sale and leaseback transactions | ¥ 254 | ¥ 102 |
Gain on sale and leaseback transactions | ¥ 115 | ¥ 0 |
Minimum | ||
FINANCE LEASE PAYABLES | ||
Sale and leaseback lease terms | 1 year | |
Internal Rate of Return (IRR) | 4.35% | 4.35% |
Maximum | ||
FINANCE LEASE PAYABLES | ||
Sale and leaseback lease terms | 6 years | |
Internal Rate of Return (IRR) | 9.74% | 6.20% |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Financial liabilities | ||||
Long-term payables for mining rights | ¥ 749,761 | ¥ 788,133 | ||
Other financial liabilities | 19,300 | 52,926 | ||
Financial liabilities included in other non-current liabilities | 769,061 | 841,059 | ||
Obligations in relation to early retirement schemes | 900,924 | 777,305 | ||
Deferred government grants | 373,447 | 314,045 | ||
Deferred gain relating to sales and lease back agreements | 176,774 | 240,661 | ||
Contract liabilities | 132,844 | |||
Provision for rehabilitation | 113,672 | 121,033 | ||
Others | 119,782 | 11,217 | ||
Other non current liabilities excluding financial liabilities | 1,684,599 | 1,597,105 | ||
Other non current liabilities | 2,453,660 | $ 354,616 | 2,438,164 | |
Maximum obligation period to pay the early retirement employees' living expenses | 5 years | |||
Retirement benefits under the Group's early retirement schemes | ||||
As at January 1, | ¥ 1,438,440 | 996,598 | ||
Provision made during the year | 447,660 | 767,632 | ||
Interest costs | 62,801 | 17,618 | ||
Payment during the year | (655,060) | (343,408) | ||
As at December 31, | ¥ 1,293,841 | 1,438,440 | ||
Non-current | 900,924 | 777,305 | ||
Current | ¥ 537,516 | ¥ 516,536 |
OTHER PAYABLES AND ACCRUED LI_3
OTHER PAYABLES AND ACCRUED LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Financial liabilities | |||
Payable for capital expenditures | ¥ 5,694,632 | ¥ 6,283,484 | |
Accrued interest | 396,286 | 827,367 | |
Payables withheld as guarantees and deposits | 1,101,456 | 1,494,367 | |
Dividends payable by subsidiaries to non-controlling shareholders | 543,207 | 223,942 | |
Consideration payable for investment projects | 280,856 | 170,494 | |
Current portion of payables for mining rights | 210,325 | 300,970 | |
Others | 1,025,163 | 2,062,612 | |
Financial liabilities included in other payables and accrued liabilities | 9,251,925 | 11,363,236 | |
Sales and other deposits from customers | 1,605,374 | ||
Taxes other than income taxes payable | 831,040 | 818,979 | |
Accrued payroll and bonus | 220,851 | 76,683 | |
Staff welfare payables | 391,824 | 262,077 | |
Current portion of obligation in relation to early retirement schemes | 516,536 | 537,516 | |
Contribution payable for pension insurance | 30,145 | 27,248 | |
Output value added tax on pending | 252,691 | ||
Others | 37,492 | 1,786 | |
Other payables and accrued liabilities, excluded financial liabilities | 2,280,579 | 3,329,663 | |
Total accruals and deferred income classified as current | $ 1,677,333 | 11,532,504 | 14,692,899 |
USD | |||
Financial liabilities | |||
Total accruals and deferred income classified as current | ¥ 240,000 | 331,000 | |
HKD | |||
Financial liabilities | |||
Total accruals and deferred income classified as current | $ 270 | ¥ 320 |
TRADE AND NOTES PAYABLES (Detai
TRADE AND NOTES PAYABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
TRADE AND NOTES PAYABLES | |||
Trade payables | ¥ 8,568,438 | ¥ 7,767,482 | |
Notes payable | 5,439,162 | 4,592,959 | |
Total trade and notes payables | $ 2,037,321 | 14,007,600 | 12,360,441 |
USD | |||
TRADE AND NOTES PAYABLES | |||
Total trade and notes payables | ¥ 213,000 | ¥ 56,000 |
TRADE AND NOTES PAYABLE - AGEIN
TRADE AND NOTES PAYABLE - AGEING ANALYSIS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Trade and notes payables | $ 2,037,321 | ¥ 14,007,600 | ¥ 12,360,441 |
Within 1 year | |||
Trade and notes payables | 13,598,040 | 11,748,228 | |
Past due for 1 to 2 years | |||
Trade and notes payables | 140,517 | 199,889 | |
2020 | |||
Trade and notes payables | 47,111 | 200,191 | |
Over 3 years | |||
Trade and notes payables | ¥ 221,932 | ¥ 212,133 |
PLEDGE OF ASSETS (Details)
PLEDGE OF ASSETS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of pledge of assets [Line Items] | ||
Property, plant and equipment | ¥ 4,168,239 | ¥ 5,799,013 |
Land use rights | 328,116 | 176,914 |
Intangible assets | 772,597 | 1,111,705 |
Notes receivable | 933,551 | 82,125 |
Trade receivables | 22,000 | |
Investment in an associate | 535,610 | |
Assets pledged as security | 6,738,113 | 7,191,757 |
Current portion of long-term loans and borrowings secured by contractual right to charge users for electricity generated in the future | 1,354,000 | 1,007,000 |
Non-current portion of long-term loans and borrowings secured by contractual right to charge users for electricity generated in the future | ¥ 10,155,000 | ¥ 12,582,000 |
Ningxia Energy | ||
Disclosure of pledge of assets [Line Items] | ||
Percentage of equity attributable to the Company | 70.82% |
PROFIT BEFORE INCOME TAX (Detai
PROFIT BEFORE INCOME TAX (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
PROFIT BEFORE INCOME TAX | ||||
Purchase of inventories in relation to trading activities | ¥ 85,443,397 | ¥ 98,282,714 | ¥ 79,682,085 | |
Raw materials and consumables used, and changes in work-in-progress and finished goods | 43,197,855 | 34,550,042 | 27,209,597 | |
Power and utilities | 17,650,214 | 17,274,948 | 12,980,854 | |
Depreciation and amortization | 8,055,137 | 7,064,129 | 7,000,677 | |
Employee benefit expenses | 7,433,027 | 6,975,281 | 5,899,257 | |
Repairs and maintenance | 1,750,194 | 1,716,940 | 1,354,394 | |
Transportation expenses | 1,893,659 | 1,768,604 | 1,532,920 | |
Logistic cost | 2,794,733 | 1,894,061 | 796,231 | |
Taxes other than income tax expense | 936,546 | 858,344 | 690,718 | |
Rental expenses for land use rights and buildings | 649,640 | 497,356 | 511,189 | |
Packaging expenses | 261,626 | 267,547 | 236,465 | |
Research and development expenses | $ 91,175 | 626,873 | 498,234 | 168,862 |
Auditors' remuneration expense | 30,847 | 31,815 | 26,006 | |
Auditors' remuneration for audit and non audit services | ¥ 26,700 | ¥ 23,100 | ¥ 23,700 |
OTHER INCOME (Details)
OTHER INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
OTHER INCOME | ||||
Income from government grants | $ 19,688 | ¥ 135,367 | ¥ 89,873 | ¥ 155,576 |
OTHER GAINS, NET (Details)
OTHER GAINS, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
OTHER GAINS, NET | ||||
Gain on deemed disposal and disposal of subsidiaries | ¥ 3,517 | ¥ 325,022 | ||
Gain on disposal and dividends of available for sales investments/equity investments designated at fair value through other comprehensive income | 109,914 | 79,408 | ¥ 140,929 | |
Realized gains/(losses) on futures, forward and option contracts, net | 40,492 | (23,951) | (1,290,267) | |
Unrealized gains/(losses) on futures, forward and option contracts, net | 100,967 | (131,073) | 154,585 | |
Gain on disposal of other property, plant and equipment and land use rights, net | 101,098 | 76,739 | 816,721 | |
Gain on previously held equity interest remeasured at acquisition-date fair value | 748,086 | 117,640 | ||
Loss on disposal of investments in associates | (1,904) | 128,833 | ||
Others | (180,266) | (124,403) | 218,342 | |
Other gains, net | $ 134,085 | ¥ 921,904 | ¥ 319,382 | ¥ 169,143 |
FINANCE INCOME_FINANCE COSTS (D
FINANCE INCOME/FINANCE COSTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
FINANCE INCOME/FINANCE COSTS | ||||
Finance income - interest income | $ (71,592) | ¥ (492,232) | ¥ (706,690) | ¥ (815,729) |
Interest expense | 5,202,639 | 5,175,156 | 5,169,568 | |
Less: interest expense capitalized in property, plant and equipment | (517,589) | (344,452) | (414,133) | |
Interest expense, net of capitalized interest | 4,685,050 | 4,830,704 | 4,755,435 | |
Amortization of unrecognized finance expenses | 205,335 | 241,099 | 324,701 | |
Exchange (gain)/loss, net | (7,889) | 131,621 | (60,228) | |
Finance costs | $ 710,130 | ¥ 4,882,496 | ¥ 5,203,424 | ¥ 5,019,908 |
Minimum | ||||
FINANCE INCOME/FINANCE COSTS | ||||
Capitalization rate during the year | 4.54% | 4.54% | 4.41% | 3.85% |
Maximum | ||||
FINANCE INCOME/FINANCE COSTS | ||||
Capitalization rate during the year | 7.00% | 7.00% | 8.00% | 6.00% |
EMPLOYEE BENEFIT EXPENSES (Deta
EMPLOYEE BENEFIT EXPENSES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
EMPLOYEE BENEFIT EXPENSES | |||
Salaries and bonus | ¥ 4,636,972 | ¥ 4,205,361 | ¥ 3,854,571 |
Housing fund | 414,440 | 395,489 | 388,017 |
Staff welfare and other expenses | 1,896,365 | 1,576,552 | 1,495,618 |
Employment expense in relation to early retirement schemes | 447,660 | 767,632 | 132,044 |
Employment expenses in relation to termination benefit | 37,590 | 30,247 | 29,007 |
Total employee benefits expense | ¥ 7,433,027 | ¥ 6,975,281 | ¥ 5,899,257 |
DIRECTORS' AND SUPERVISORS' R_3
DIRECTORS' AND SUPERVISORS' REMUNERATION - Remuneration payables to directors and supervisors (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DIRECTORS' AND SUPERVISORS' REMUNERATION | |||
Fees | ¥ 756 | ¥ 768 | ¥ 762 |
Basic salaries, housing fund, other allowances and benefits in kind | 1,849 | 1,370 | 975 |
Pension costs | 234 | 166 | 114 |
Total remuneration | ¥ 2,839 | ¥ 2,304 | ¥ 1,851 |
DIRECTORS' AND SUPERVISORS' R_4
DIRECTORS' AND SUPERVISORS' REMUNERATION - Remuneration of each director and supervisor (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant related party transactions | |||
Fees | ¥ 756 | ¥ 768 | ¥ 762 |
Salaries | 1,849 | 1,370 | 975 |
Pension costs | 234 | 166 | 114 |
Total | 2,839 | 2,304 | 1,851 |
Executive Directors | |||
Significant related party transactions | |||
Salaries | 1,200 | 822 | 725 |
Pension costs | 144 | 83 | 76 |
Total | 1,344 | 905 | 801 |
Jiang Yinggang | |||
Significant related party transactions | |||
Salaries | 762 | 822 | 725 |
Pension costs | 90 | 83 | 76 |
Total | 852 | 905 | 801 |
Zhu Runzhou | |||
Significant related party transactions | |||
Salaries | 438 | ||
Pension costs | 54 | ||
Total | 492 | ||
Non-executive Directors | |||
Significant related party transactions | |||
Fees | 756 | 768 | 762 |
Total | 756 | 768 | 762 |
Wang Jun | |||
Significant related party transactions | |||
Fees | 150 | 150 | 150 |
Total | 150 | 150 | 150 |
Lie-A-Cheong Tai-Chong, David | |||
Significant related party transactions | |||
Fees | 202 | 206 | 204 |
Total | 202 | 206 | 204 |
Chen Lijie | |||
Significant related party transactions | |||
Fees | 202 | 206 | 204 |
Total | 202 | 206 | 204 |
Hu Shihai | |||
Significant related party transactions | |||
Fees | 202 | 206 | 204 |
Total | 202 | 206 | 204 |
Supervisors | |||
Significant related party transactions | |||
Salaries | 649 | 548 | 250 |
Pension costs | 90 | 83 | 38 |
Total | 739 | 631 | 288 |
Wu Zuoming | |||
Significant related party transactions | |||
Salaries | 649 | 548 | 250 |
Pension costs | 90 | 83 | 38 |
Total | ¥ 739 | ¥ 631 | ¥ 288 |
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, 2018CNY (¥)Optionindividualemployee | Dec. 31, 2017CNY (¥)Optionindividual | Dec. 31, 2016CNY (¥)Optionindividual | |
Directors' and supervisors' remuneration | |||
Key management personnel compensation | ¥ 2,839,000 | ¥ 2,304,000 | ¥ 1,851,000 |
Number of directors and supervisors whose remuneration fell within Nil to RMB1,000,000 | individual | 12 | 15 | 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, 2018CNY (¥)individualdirectoremployee | Dec. 31, 2017CNY (¥)individualdirector | Dec. 31, 2016CNY (¥)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 | 2 |
Number of supervisors among five highest paid employees | individual | 1 | 1 | 1 |
Basic salaries, housing fund, other allowances and benefits in kind | ¥ 1,849 | ¥ 1,370 | ¥ 975 |
Pension costs | 234 | 166 | 114 |
Total remuneration | 2,839 | 2,304 | 1,851 |
Highest paid employees other than directors and supervisors | |||
Significant related party transactions | |||
Basic salaries, housing fund, other allowances and benefits in kind | 1,305 | 2,460 | 1,450 |
Pension costs | 165 | 249 | 152 |
Total remuneration | ¥ 1,470 | ¥ 2,709 | ¥ 1,602 |
DIRECTORS' AND SUPERVISORS' R_7
DIRECTORS' AND SUPERVISORS' REMUNERATION - Five highest paid individuals, Others (Details) | 12 Months Ended | ||
Dec. 31, 2018CNY (¥)employee | Dec. 31, 2017employee | Dec. 31, 2016employee | |
Significant related party transactions | |||
Number of remaining highest paid individuals other than director and supervisor | employee | 2 | 3 | 2 |
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 BENEFIT_(EXPENSE) -
INCOME TAX BENEFIT/(EXPENSE) - (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
INCOME TAX BENEFIT/(EXPENSE) | ||||
PRC corporate income tax | ¥ 755,215 | ¥ 844,896 | ¥ 503,233 | |
Deferred tax (benefit)/expense | 67,284 | (201,162) | (99,334) | |
Income tax (expense)/benefit | $ 119,628 | ¥ 822,499 | ¥ 643,734 | ¥ 403,899 |
Corporate income 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 BENEFIT_(EXPENSE) _2
INCOME TAX BENEFIT/(EXPENSE) - Reconciliation of tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Reconciliation of income tax expense (benefit) | ||||
Profit before income tax | ¥ 2,303,511 | ¥ 3,049,010 | ¥ 1,620,689 | |
Tax expense calculated at the statutory tax rate of 25% (2017: 25%) | 575,878 | 762,253 | 405,172 | |
Preferential income tax rates applicable to certain branches and subsidiaries | (268,665) | (287,081) | (3,322) | |
Impact of change in income tax rate | 23,425 | 98,150 | 5,945 | |
Tax losses with no deferred tax assets recognized | 434,103 | 296,728 | 269,173 | |
Deductible temporary differences with no deferred tax assets recognized | 382,503 | 308,657 | 78,644 | |
Utilisation of previously unrecognized tax losses and deductible temporary differences | (52,962) | (212,240) | (203,423) | |
Tax incentive in relation to deduction of certain expenses | (62,172) | (43,846) | (3,769) | |
Non-taxable income | (254,337) | (126,101) | (89,602) | |
Expenses not deductible for tax purposes | 46,758 | 10,290 | 83,966 | |
Write-off of unrecoverable deferred tax assets previously recognized | 183,195 | 49,808 | 3,315 | |
Return on equity investment measured by the equity method | 40,029 | 39,274 | (4,896) | |
Recognition of deferred tax assets related to deductible temporary differences and tax losses previously not recognized | (233,940) | (274,726) | (117,513) | |
True-up adjustments in respect of prior year's annual income tax filings and others | 8,684 | 22,568 | (19,791) | |
Income tax expense | $ 119,628 | ¥ 822,499 | ¥ 643,734 | ¥ 403,899 |
Effective tax rate | 36.00% | 36.00% | 21.00% | 25.00% |
Applicable tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Associates | ||||
Reconciliation of income tax expense (benefit) | ||||
Income tax expense | ¥ 106,000 | ¥ 86,000 | ¥ 64,000 | |
Joint ventures | ||||
Reconciliation of income tax expense (benefit) | ||||
Income tax expense | ¥ 48,000 | ¥ 11,000 | ¥ 22,000 |
EARNINGS PER SHARE ATTRIBUTAB_3
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT | |||
Profit attributable to ordinary equity holders of the parent (RMB) | ¥ 746,477,441 | ¥ 1,413,028,383 | ¥ 365,697,352 |
Other equity instruments' distribution reserved (RMB) | (129,282,192) | (110,000,000) | (110,000,000) |
Profit attributable to ordinary equity holders of the parent after adjusting other equity instruments' distribution reserved | ¥ 617,195,249 | ¥ 1,303,028,383 | ¥ 255,697,352 |
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 (Note 18(b)) | 1,938,915,502 | ||
Weighted average number of ordinary shares in issue after adjusting the effect of equity exchange arrangement | 16,842,713,738 | 14,903,798,236 | 14,903,798,236 |
Basic earnings per share (RMB) | ¥ 0.037 | ¥ 0.087 | ¥ 0.017 |
Dilutive potential shares | 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, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
Profit before income tax | $ 335,029 | ¥ 2,303,511 | ¥ 3,049,010 | ¥ 1,620,689 |
Adjustments for: | ||||
Share of profits and losses of joint ventures | 29,009 | 199,452 | (8,151) | 95,508 |
Share of profits and losses of associates | (5,721) | (39,335) | 165,249 | (115,091) |
Depreciation of property, plant and equipment | 7,499,322 | 6,554,775 | 6,590,248 | |
Depreciation of investment properties | 22,229 | 14,105 | 1,426 | |
Gain on disposal of other property, plant and equipment and land use rights, net | (101,098) | (76,739) | (245,451) | |
Gain on disposal of Environmental Protection Assets | (571,270) | |||
Impairment losses on property, plant and equipment | 7,450 | 16,200 | 57,080 | |
Impairment losses of intangible assets | 8,134 | |||
Amortization of intangible assets | 295,629 | 275,877 | 244,361 | |
Amortization of land use rights | 107,809 | 91,579 | 99,724 | |
Amortization of prepaid expenses included in other non-current assets | 130,148 | 127,793 | 64,918 | |
Realized and unrealized losses/(gains) on futures, option and forward contracts | (141,459) | 155,024 | 1,135,682 | |
Gain on previously held equity interest remeasured at acquisition-date fair value | (748,086) | (117,640) | ||
Gain on disposals and deemed disposals of subsidiaries | (3,517) | (325,022) | ||
Loss on disposal of investments in associates | 1,904 | (128,833) | ||
Gain on disposal of and dividends from equity investments | (109,914) | (79,408) | (140,929) | |
Receipt of government subsidies | (158,109) | (202,359) | (207,146) | |
Interest income | (183,015) | (353,619) | ||
Finance costs | 4,882,496 | 5,203,422 | 5,019,908 | |
Change in special reserve | 6,605 | 58,743 | 9,839 | |
Others | 75,380 | (16,950) | 55 | |
Cash flows generated from operating activities before working capital changes | 14,230,417 | 14,710,627 | 13,177,099 | |
Changes in working capital: | ||||
Decrease/(increase) in inventories | 1,194,454 | (2,662,507) | 2,398,030 | |
Increase in trade and notes receivables | (2,486,201) | (1,961,968) | (3,655,735) | |
Decrease in other current assets | 916,681 | 1,275,535 | 3,463,799 | |
(Increase)/decrease in restricted cash | 530,284 | (137,745) | (264,508) | |
(Increase)/decrease in other non-current assets | 425,768 | (422,845) | (132,203) | |
(Decrease)/increase in trade and notes payables | (5,660) | 1,599,294 | (3,405,737) | |
(Increase/(decrease) in other payables and accrued liabilities | (945,270) | 1,672,658 | 73,357 | |
Increase in other non-current liabilities | 105,386 | 81,878 | 11,105 | |
Cash generated from operations | 13,965,859 | 14,154,927 | 11,665,207 | |
PRC corporate income taxes paid | (947,683) | (949,355) | (55,898) | |
Net cash generated from operating activities | $ 1,893,415 | 13,018,176 | 13,205,572 | 11,609,309 |
Non-cash transactions of investing activities and financing activities | ||||
Capital injection to an associate and joint ventures by non-cash assets | 186,450 | 371,051 | ||
Equity exchange arrangement | 10,735,214 | |||
Endorsement of notes receivables accepted from sale of goods or services for purchase of property, plant and equipment | 2,384,046 | 372,816 | ¥ 1,568,488 | |
Acquisition of businesses at non-cash consideration | 70,087 | 50,058 | ||
Finance lease | ¥ 113,305 | ¥ 44,342 |
NOTES TO THE CONSOLIDATED STA_4
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS - Financing activities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of liabilities arising from financing activities | ||
As at beginning of year | ¥ 127,852,937 | ¥ 128,087,633 |
Net cash generated from operating activities | (675,013) | 2,614,307 |
Net cash flows from/(used in) investing activities | 8,562,507 | 2,522,314 |
Payment of upfront interest of gold leasing arrangement | 2,323,105 | 7,804,083 |
Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs | 13,185,034 | 3,478,550 |
Repayments of medium-term notes and short-term bonds | (21,815,000) | (16,300,000) |
Repayments of gold leasing arrangement | (7,519,283) | (4,000,000) |
Drawdown of short-term and long-term bank and other loans | 76,899,591 | 83,758,749 |
Repayments of short-term and long-term bank and other loans | (70,546,537) | (78,866,459) |
Proceeds from finance lease, 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) |
Dividends paid by subsidiaries to non-controlling shareholders | 277,771 | 2,446 |
Amortization of unrecognized finance expenses and interest expense | 527,385 | 414,723 |
Interest paid | (560,150) | (278,084) |
Net cash (used in)/ generated from financing activities | (9,938,645) | (5,448,206) |
Net foreign exchange differences | 21,532 | 76,889 |
As at end of year | 125,823,318 | 127,852,937 |
Financial liabilities at fair value through profit or loss | ||
Reconciliation of liabilities arising from financing activities | ||
As at beginning of year | 89,426 | 3,575 |
Net cash flows from/(used in) investing activities | (87,660) | 85,851 |
As at end of year | 1,766 | 89,426 |
Trade and notes payables | ||
Reconciliation of liabilities arising from financing activities | ||
As at beginning of year | 12,360,441 | 11,532,163 |
Net cash generated from operating activities | (5,660) | 1,361,087 |
Net cash flows from/(used in) investing activities | 1,646,299 | (530,457) |
Net foreign exchange differences | 6,520 | (2,352) |
As at end of year | 14,007,600 | 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 | 11,363,236 | 9,793,534 |
Net cash generated from operating activities | (669,353) | 1,253,220 |
Net cash flows from/(used in) investing activities | (193,345) | 640,157 |
Repayments of short-term and long-term bank and other loans | (1,000,000) | |
Dividends paid by subsidiaries to non-controlling shareholders | 277,771 | 2,446 |
Interest paid | (449,835) | (278,084) |
Reclassification | (90,644) | (36,690) |
Net cash (used in)/ generated from financing activities | (1,262,708) | (312,328) |
Net foreign exchange differences | 14,095 | (11,347) |
As at end of year | 9,251,925 | 11,363,236 |
Financial liabilities included in other non-current liabilities | ||
Reconciliation of liabilities arising from financing activities | ||
As at beginning of year | 769,061 | 789,720 |
Net cash flows from/(used in) investing activities | (73,701) | |
Amortization of unrecognized finance expenses and interest expense | 6,090 | 16,352 |
Interest paid | (24,736) | |
Reclassification | 90,644 | 36,690 |
Net cash (used in)/ generated from financing activities | 71,998 | 53,042 |
As at end of year | 841,059 | 769,061 |
Interest bearing loans and borrowings | ||
Reconciliation of liabilities arising from financing activities | ||
As at beginning of year | 103,270,773 | 105,968,641 |
Net cash flows from/(used in) investing activities | 7,197,213 | 2,400,464 |
Payment of upfront interest of gold leasing arrangement | 2,323,105 | 7,804,083 |
Proceeds from issuance of short-term bonds and medium-term notes, net of issuance costs | 13,185,034 | 3,478,550 |
Repayments of medium-term notes and short-term bonds | (21,815,000) | (16,300,000) |
Repayments of gold leasing arrangement | (7,519,283) | (4,000,000) |
Drawdown of short-term and long-term bank and other loans | 76,899,591 | 83,758,749 |
Repayments of short-term and long-term bank and other loans | (69,546,537) | (78,866,459) |
Proceeds from finance lease, 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) |
Amortization of unrecognized finance expenses and interest expense | 521,295 | 398,371 |
Interest paid | (85,579) | |
Net cash (used in)/ generated from financing activities | (8,747,935) | (5,188,920) |
Net foreign exchange differences | 917 | 90,588 |
As at end of year | ¥ 101,720,968 | ¥ 103,270,773 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales of goods and services rendered | |||
Sales of materials and finished goods | ¥ 19,235,717 | ¥ 14,097,316 | ¥ 12,261,860 |
Provision of utility services | 847,252 | 709,744 | 575,687 |
Other significant related party transactions | |||
Entrusted loans and other borrowings to related parties | 1,600,000 | 212,400 | |
Interest income on entrusted loans and other borrowings to related parties | 65,430 | 31,373 | |
Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Services rendered | 7,706 | 79,141 | 142,746 |
Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 34,607 | 41,301 | 33,231 |
Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 2,496,431 | 1,205,355 | 1,529,453 |
Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 13,822,660 | 10,367,335 | 5,491,058 |
Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 1,193,038 | 1,432,259 | 689,860 |
Rental expenses for buildings and land use rights | |||
Purchase of goods and services | |||
Rental expenses for buildings and land use rights charged | 501,866 | 509,848 | 511,127 |
Chinalco and its subsidiaries | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 11,248,625 | 10,658,507 | 10,319,958 |
Provision of utility services | 620,552 | 581,566 | 567,628 |
Other significant related party transactions | |||
Interest income from the unpaid disposal proceeds from related parties | 117,587 | 246,149 | |
Chinalco and its subsidiaries | Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Services rendered | 5,981 | 77,095 | 101,323 |
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 | 31,551 | 40,875 | 33,231 |
Chinalco and its subsidiaries | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 2,088,338 | 1,071,283 | 1,529,453 |
Chinalco and its subsidiaries | Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 3,513,420 | 3,850,073 | 1,660,529 |
Chinalco and its subsidiaries | Provision of social services and logistics services | |||
Purchase of goods and services | |||
Purchase of services | 312,062 | 326,830 | 307,354 |
Chinalco and its subsidiaries | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 992,827 | 1,412,722 | 686,474 |
Chinalco and its subsidiaries | Rental expenses for buildings and land use rights | |||
Purchase of goods and services | |||
Rental expenses for buildings and land use rights charged | 501,866 | 509,848 | 511,001 |
Associates of Chinalco | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 897,642 | 682,992 | 688,308 |
Provision of utility services | 15,719 | 8,776 | 4,444 |
Associates of Chinalco | Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 18,917 | ||
Associates of Chinalco | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 96,510 | ||
Joint ventures | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 4,462,670 | 2,031,159 | 648,145 |
Provision of utility services | 186,672 | 118,280 | 3,031 |
Other significant related party transactions | |||
Entrusted loans and other borrowings to related parties | 500,000 | 212,400 | |
Interest income on entrusted loans and other borrowings to related parties | 41,005 | 31,373 | |
Financial guarantee provided to related party | 12,450 | 18,350 | 24,245 |
Joint ventures | Provision of engineering, construction and supervisory services | |||
Sales of goods and services rendered | |||
Services rendered | 2,046 | 41,423 | |
Joint ventures | Rental revenue of land use rights and buildings | |||
Sales of goods and services rendered | |||
Rental revenue of land use rights and buildings | 1,545 | 426 | |
Joint ventures | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 2,100 | ||
Joint ventures | Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 8,182,251 | 6,516,087 | 3,799,116 |
Joint ventures | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 26,269 | 19,537 | 3,386 |
Joint ventures | Provision of other services | |||
Purchase of goods and services | |||
Purchase of services | 226,280 | 269,204 | 151,552 |
Joint ventures | Rental expenses for buildings and land use rights | |||
Purchase of goods and services | |||
Rental expenses for buildings and land use rights charged | 126 | ||
Associates | |||
Sales of goods and services rendered | |||
Sales of materials and finished goods | 2,626,780 | 724,658 | 605,449 |
Provision of utility services | 24,309 | 1,122 | 584 |
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 | 1,511 | ||
Associates | Purchases of engineering, construction and supervisory services | |||
Purchase of goods and services | |||
Purchase of services | 405,993 | 134,072 | |
Associates | Purchases of key and auxiliary materials, equipment and finished goods | |||
Purchase of goods and services | |||
Purchase of goods | 2,108,072 | 1,175 | 31,413 |
Associates | Provision of utilities services | |||
Sales of goods and services rendered | |||
Provision of utility services | 77,432 | ||
Shandong Aluminum, Shanxi Aluminum Plant and China Great Wall Aluminum Corporation | |||
Other significant related party transactions | |||
Borrowing from related parties | 6,525,000 | 4,010,000 | 5,145,959 |
Interest expense on borrowings, discounted notes and factoring arrangement from related parties | 143,415 | 225,934 | 226,118 |
Disposal assets under sale and leaseback contract to related parties | 224,000 | 600,000 | 1,040,000 |
Finance lease under a sale and leaseback contract from related parties | 224,000 | 600,036 | 1,040,036 |
Trade receivable factoring arrangement from related parties | 470,101 | 1,570,000 | |
Discounted notes receivable to a related parties | ¥ 756,000 | 523,253 | 40,200 |
Financial guarantees provided | ¥ 4,000 | ¥ 23,000 |
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, 2018 | Aug. 30, 2018 | |
Ningxia Energy | Tian Jing Shen Zhou Wind Power Co., Ltd | |||
Significant related party transactions | |||
Bank loan term (in years) | 14 years | ||
Financial guarantees provided | ¥ 35 | ||
Outstanding financial guarantee amount | ¥ 12 | ||
Northeast Light Alloy Co., Ltd | East Light Logistics | |||
Significant related party transactions | |||
Equity interest acquired (as a percent) | 51.00% | ||
China Great Wall Aluminum Co., Ltd | Chibi Great Wall Carbon Products Co., Ltd | |||
Significant related party transactions | |||
Equity interest acquired (as a percent) | 57.69% | ||
Henan Great Wall Zhongxin Industrial Co., Ltd | Chibi Great Wall Carbon Products Co., Ltd | |||
Significant related party transactions | |||
Equity interest acquired (as a percent) | 19.96% |
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, 2018 | Dec. 31, 2017 |
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | ¥ 2,123,863 | ¥ 2,174,046 | |||
Provision for impairment of receivables | (77,657) | (78,388) | |||
Trade and notes receivables | 2,046,206 | 2,095,658 | |||
Other current assets, before provision for impairment | 2,284,994 | 3,493,036 | |||
Provision for impairment of other current assets | (40,830) | (48,166) | |||
Other current assets | 2,244,164 | 3,444,870 | |||
Other non-current assets | 111,845 | 208,948 | |||
Borrowings and finance lease payables | 4,373,033 | 3,519,807 | |||
Trade and notes payables | 1,052,893 | 753,456 | |||
Other payables and accrued liabilities | 2,061,976 | 2,977,667 | |||
Contract Liabilities | 129,145 | ||||
Shandong Aluminum, Shanxi Aluminum Plant and China Great Wall Aluminum Corporation | |||||
Balances with related parties | |||||
Cash and cash equivalents | 9,101,541 | 7,679,806 | |||
Borrowings and finance lease payables | 4,373,033 | 3,329,807 | |||
Chinalco and its subsidiaries | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 1,278,715 | 1,483,984 | |||
Other current assets, before provision for impairment | 830,615 | 623,254 | |||
Trade and notes payables | 404,278 | 332,701 | |||
Other payables and accrued liabilities | 1,887,010 | 2,652,249 | |||
Contract Liabilities | 22,307 | ||||
Associates of Chinalco | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 18,655 | 2,000 | |||
Trade and notes receivables | 4,012 | ||||
Other payables and accrued liabilities | 17,128 | 5,030 | |||
Contract Liabilities | 20 | ||||
Joint ventures | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 819,878 | 591,488 | |||
Other current assets, before provision for impairment | 1,424,678 | 1,737,644 | |||
Other non-current assets | 97,103 | ||||
Borrowings and finance lease payables | 190,000 | ||||
Trade and notes payables | 631,570 | 413,533 | |||
Other payables and accrued liabilities | 8,860 | 101,828 | |||
Contract Liabilities | 94,367 | ||||
Associates | |||||
Balances with related parties | |||||
Trade and notes receivables, before provision for impairment | 6,615 | 96,574 | |||
Other current assets, before provision for impairment | 29,701 | 1,132,138 | |||
Other non-current assets | 111,845 | 111,845 | |||
Trade and notes payables | 13,033 | 7,222 | |||
Other payables and accrued liabilities | 148,978 | 218,560 | |||
Contract Liabilities | 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 | 42,553,000 | 33,575,000 | |||
Short-term loans and borrowings payable | ¥ 41,189,000 | ¥ 42,648,000 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant related party transactions | |||
Fees | ¥ 756 | ¥ 768 | ¥ 762 |
Basic salaries, housing fund, other allowances and benefits in kind | 1,849 | 1,370 | 975 |
Pension costs | 234 | 166 | 114 |
Total remuneration | 2,839 | 2,304 | 1,851 |
Key management personnel | |||
Significant related party transactions | |||
Fees | 756 | 768 | 762 |
Basic salaries, housing fund, other allowances and benefits in kind | 3,953 | 3,830 | 2,542 |
Pension costs | 482 | 415 | 277 |
Total remuneration | ¥ 5,191 | ¥ 5,013 | ¥ 3,581 |
FINANCIAL AND CAPITAL RISK MA_3
FINANCIAL AND CAPITAL RISK MANAGEMENT (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Foreign currency risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Higher/lower in risk assumption (as a percent) | 5.00% | |
Total comprehensive income for the year would have been lower/higher by higher/lower in risk assumption | ¥ 10 | ¥ 21 |
Interest rate risk | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Higher/lower in risk assumption (as a percent) | 1.00% | 1.00% |
Total comprehensive income for the year would have been lower/higher by higher/lower in risk assumption | ¥ 641 | ¥ 537 |
FINANCIAL AND CAPITAL RISK MA_4
FINANCIAL AND CAPITAL RISK MANAGEMENT - Commodity price risk (Details) - Commodity price risk - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increased/decreased in risk assumption (as a percent) | 3.00% | 3.00% |
Primary aluminum | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increased/decreased profit for the year by increased/decreased of risk assumption | ¥ 14 | ¥ 46 |
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 | 2 | 89 |
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 | 16 | 10 |
Copper | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increased/decreased profit for the year by increased/decreased of risk assumption | 0.9 | 0.3 |
Zinc | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increased/decreased profit for the year by increased/decreased of risk assumption | 1 | 7 |
Coal | ||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||
Increased/decreased profit for the year by increased/decreased of risk assumption | ¥ 2.7 | ¥ 0.2 |
FINANCIAL AND CAPITAL RISK MA_5
FINANCIAL AND CAPITAL RISK MANAGEMENT - Credit risk (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Guarantees provided to a third party | ¥ 659,261 | ||
Financial assets | ¥ 46,699,433 | ||
Revenues derived from entities directly or indirectly owned or controlled by the PRC government including Chinalco | 19,235,717 | 14,097,316 | ¥ 12,261,860 |
Other non-current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 182,132 | 242,567 | |
Credit risk | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 34,489,165 | ||
Credit risk | Trade receivables | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 5,206,050 | ||
Credit risk | Other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 4,875,525 | ||
Credit risk | Notes receivable | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 2,894,482 | ||
Credit risk | Restricted cash | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 2,165,288 | ||
Credit risk | Cash and cash equivalents | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 19,130,652 | ||
Credit risk | Other non-current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 204,718 | ||
Credit risk | Financial guarantees - not yet past due | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 12,450 | ||
Credit risk | Stage 2 | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 3,655,638 | ||
Credit risk | Stage 2 | Other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 3,655,638 | ||
Credit risk | Simplified | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 5,206,050 | ||
Credit risk | Simplified | Trade receivables | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 5,206,050 | ||
Credit risk | 12-month expected credit losses | Stage 1 | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 25,506,045 | ||
Credit risk | 12-month expected credit losses | Stage 1 | Other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 1,098,455 | ||
Credit risk | 12-month expected credit losses | Stage 1 | Notes receivable | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 2,894,482 | ||
Credit risk | 12-month expected credit losses | Stage 1 | Restricted cash | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 2,165,288 | ||
Credit risk | 12-month expected credit losses | Stage 1 | Cash and cash equivalents | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 19,130,652 | ||
Credit risk | 12-month expected credit losses | Stage 1 | Other non-current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 204,718 | ||
Credit risk | 12-month expected credit losses | Stage 1 | Financial guarantees - not yet past due | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 12,450 | ||
Credit risk | Lifetime expected credit losses | Stage 3 | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 121,432 | ||
Credit risk | Lifetime expected credit losses | Stage 3 | Other current assets | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Financial assets | 121,432 | ||
Credit risk | Entities directly or indirectly owned or controlled by the PRC government including Chinalco | |||
FINANCIAL AND CAPITAL RISK MANAGEMENT | |||
Revenues derived from entities directly or indirectly owned or controlled by the PRC government including Chinalco | ¥ 32,852,000 | ¥ 39,759,000 | ¥ 30,940,000 |
FINANCIAL AND CAPITAL RISK MA_6
FINANCIAL AND CAPITAL RISK MANAGEMENT - Liquidity risk (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | |
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||||
Facilities utilized | ¥ 121,518 | |||
Banking facilities subject to renewal during the next 12 months | 92,582 | |||
Unutilized banking facilities, renewal term | 12 months | |||
Liquidity risk | Banking facilities | ||||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||||
Credit facilities | 183,129 | |||
Facilities utilized | 61,611 | |||
Banking facilities subject to renewal during the next 12 months | 92,582 | |||
Unutilized banking facilities, renewal term | 12 months | |||
Liquidity risk | Futures contracts | Banking facilities | ||||
FINANCIAL AND CAPITAL RISK MANAGEMENT | ||||
Credit facilities | $ 12 | 82 | $ 20 | ¥ 131 |
Facilities utilized | $ 1 | ¥ 7 | $ 2 | ¥ 13 |
FINANCIAL AND CAPITAL RISK MA_7
FINANCIAL AND CAPITAL RISK MANAGEMENT - Liquidity reserve (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Maturity Analysis For Derivative Financial Liabilities | ||
Carrying value of financial liabilities included in other non-current liabilities | ¥ 841,059 | ¥ 769,061 |
The Group | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 138,407,156 | 140,248,495 |
The Group | Finance lease payables, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 4,401,097 | 6,098,467 |
The Group | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 46,140,740 | 40,504,834 |
The Group | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 10,185,840 | 15,715,000 |
The Group | Short-term bonds | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 500,000 | 3,500,000 |
The Group | Gold leasing arrangement | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,607,905 | 6,818,393 |
The Group | Short-term bank and other loans | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 39,296,192 | 31,041,442 |
The Group | Interest payables for borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 12,547,869 | 12,780,274 |
The Group | Financial liabilities at fair value through profit or loss | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,766 | 89,426 |
The Group | Financial liabilities included in other payables and accrued liabilities, excluding accrued interest | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 8,855,639 | 10,535,869 |
The Group | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 862,508 | 804,349 |
The Group | Trade and notes payables | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 14,007,600 | 12,360,441 |
The Group | Within 1 year | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 75,421,123 | 91,631,488 |
The Group | Within 1 year | Finance lease payables, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,518,653 | 2,371,917 |
The Group | Within 1 year | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 3,384,400 | 6,911,640 |
The Group | Within 1 year | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 400,000 | 12,500,000 |
The Group | Within 1 year | Short-term bonds | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 500,000 | 3,500,000 |
The Group | Within 1 year | Gold leasing arrangement | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,607,905 | 6,818,393 |
The Group | Within 1 year | Short-term bank and other loans | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 39,296,192 | 31,041,442 |
The Group | Within 1 year | Interest payables for borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 4,848,968 | 5,502,360 |
The Group | Within 1 year | Financial liabilities at fair value through profit or loss | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,766 | 89,426 |
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 | 8,855,639 | 10,535,869 |
The Group | Within 1 year | Trade and notes payables | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 14,007,600 | 12,360,441 |
The Group | Past due for 1 to 2 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 11,251,093 | 12,382,567 |
The Group | Past due for 1 to 2 years | Finance lease payables, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 1,161,490 | 1,762,618 |
The Group | Past due for 1 to 2 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 7,377,956 | 5,174,015 |
The Group | Past due for 1 to 2 years | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 3,215,000 | |
The Group | Past due for 1 to 2 years | Interest payables for borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 2,602,751 | 2,123,149 |
The Group | Past due for 1 to 2 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 108,896 | 107,785 |
The Group | 2 to 5 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 31,617,861 | 14,779,056 |
The Group | 2 to 5 years | Finance lease payables, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 707,716 | 1,890,329 |
The Group | 2 to 5 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 16,593,587 | 8,673,794 |
The Group | 2 to 5 years | Medium-term notes and bonds, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 9,785,840 | |
The Group | 2 to 5 years | Interest payables for borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 4,197,364 | 4,106,037 |
The Group | 2 to 5 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 333,354 | 108,896 |
The Group | After 5 years | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 20,117,079 | 21,455,384 |
The Group | After 5 years | Finance lease payables, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 13,238 | 73,603 |
The Group | After 5 years | Long-term bank and other loans, including current portion | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 18,784,797 | 19,745,385 |
The Group | After 5 years | Interest payables for borrowings | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | 898,786 | 1,048,728 |
The Group | After 5 years | Financial liabilities included in other non-current liabilities | ||
Maturity Analysis For Derivative Financial Liabilities | ||
Total financial liabilities | ¥ 420,258 | ¥ 587,668 |
FINANCIAL AND CAPITAL RISK MA_8
FINANCIAL AND CAPITAL RISK MANAGEMENT - Financial instruments by category (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
OTHER CURRENT ASSETS | ||
Current financial assets | ¥ 44,510,076 | |
Non-current financial assets | 2,189,357 | |
Total financial assets | 46,699,433 | |
Current financial liabilities | 86,794,173 | |
Non-current financial liabilities | 41,058,764 | |
Total financial liabilities | 127,852,937 | |
Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 89,426 | |
Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 62,981,070 | |
Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 11,363,236 | |
Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 12,360,441 | |
Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 769,061 | |
Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 40,289,703 | |
Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 89,426 | |
Total financial liabilities | 89,426 | |
Financial liabilities at fair value through profit or loss | Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 89,426 | |
Financial liabilities at amortized cost | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 86,704,747 | |
Non-current financial liabilities | 41,058,764 | |
Total financial liabilities | 127,763,511 | |
Financial liabilities at amortized cost | Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 62,981,070 | |
Financial liabilities at amortized cost | Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 11,363,236 | |
Financial liabilities at amortized cost | Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 12,360,441 | |
Financial liabilities at amortized cost | Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 769,061 | |
Financial liabilities at amortized cost | Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 40,289,703 | |
Trade and notes receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 8,008,937 | |
Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 9,534 | |
Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,168,192 | |
Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 27,835,866 | |
Other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 6,487,547 | |
Available-for-sale financial investments | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,928,201 | |
Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 261,156 | |
Total financial assets | ¥ 182,132 | 242,567 |
Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 9,534 | |
Total financial assets | 9,534 | |
Financial assets at fair value through profit or loss | Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 9,534 | |
Loans and receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 44,500,542 | |
Non-current financial assets | 261,156 | |
Total financial assets | 44,761,698 | |
Loans and receivables | Trade and notes receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 8,008,937 | |
Loans and receivables | Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,168,192 | |
Loans and receivables | Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 27,835,866 | |
Loans and receivables | Other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 6,487,547 | |
Loans and receivables | Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 261,156 | |
Financial assets available-for-sale | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,928,201 | |
Total financial assets | 1,928,201 | |
Financial assets available-for-sale | Available-for-sale financial investments | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | ¥ 1,928,201 | |
The Group | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 34,288,138 | |
Non-current financial assets | 1,934,543 | |
Total financial assets | 36,222,681 | |
Current financial liabilities | 70,774,873 | |
Non-current financial liabilities | 55,048,445 | |
Total financial liabilities | 125,823,318 | |
The Group | Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 1,766 | |
The Group | Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 47,513,582 | |
The Group | Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 9,251,925 | |
The Group | Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 14,007,600 | |
The Group | Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 841,059 | |
The Group | Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 54,207,386 | |
The Group | Held for trading | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 1,766 | |
Total financial liabilities | 1,766 | |
The Group | Held for trading | Financial liabilities at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 1,766 | |
The Group | Financial liabilities at amortized cost | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 70,773,107 | |
Non-current financial liabilities | 55,048,445 | |
Total financial liabilities | 125,821,552 | |
The Group | Financial liabilities at amortized cost | Interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 47,513,582 | |
The Group | Financial liabilities at amortized cost | Financial liabilities included in other payables and accrued liabilities | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 9,251,925 | |
The Group | Financial liabilities at amortized cost | Trade and notes payables | ||
OTHER CURRENT ASSETS | ||
Current financial liabilities | 14,007,600 | |
The Group | Financial liabilities at amortized cost | Financial liabilities included in other non-current liabilities | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 841,059 | |
The Group | Financial liabilities at amortized cost | Long-term interest-bearing loans and borrowings | ||
OTHER CURRENT ASSETS | ||
Non-current financial liabilities | 54,207,386 | |
The Group | Trade and notes receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 8,100,532 | |
The Group | Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 16,141 | |
The Group | Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,165,288 | |
The Group | Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 19,130,652 | |
The Group | Other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,875,525 | |
The Group | Equity investments designated at fair value through other comprehensive income | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,729,825 | |
The Group | Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 204,718 | |
The Group | Held for trading | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 16,141 | |
Total financial assets | 16,141 | |
The Group | Held for trading | Financial assets at fair value through profit or loss | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 16,141 | |
The Group | Financial assets at amortized cost | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 34,271,997 | |
Non-current financial assets | 204,718 | |
Total financial assets | 34,476,715 | |
The Group | Financial assets at amortized cost | Trade and notes receivables | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 8,100,532 | |
The Group | Financial assets at amortized cost | Restricted cash and time deposits | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 2,165,288 | |
The Group | Financial assets at amortized cost | Cash and cash equivalents | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 19,130,652 | |
The Group | Financial assets at amortized cost | Other current assets | ||
OTHER CURRENT ASSETS | ||
Current financial assets | 4,875,525 | |
The Group | Financial assets at amortized cost | Other non-current assets | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 204,718 | |
The Group | Equity investments designated at fair value through other comprehensive income | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | 1,729,825 | |
Total financial assets | 1,729,825 | |
The Group | Equity investments designated at fair value through other comprehensive income | Equity investments designated at fair value through other comprehensive income | ||
OTHER CURRENT ASSETS | ||
Non-current financial assets | ¥ 1,729,825 |
FINANCIAL AND CAPITAL RISK MA_9
FINANCIAL AND CAPITAL RISK MANAGEMENT - Fair value (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurement Of Assets | ||
Financial assets | ¥ 46,699,433 | |
Financial liabilities | 127,852,937 | |
The Group | ||
Fair Value Measurement Of Assets | ||
Financial assets | ¥ 36,222,681 | |
Financial liabilities | 125,823,318 | |
The Group | At carrying amounts | ||
Fair Value Measurement Of Assets | ||
Financial assets | 204,718 | 261,156 |
Financial liabilities | 55,048,445 | 41,058,764 |
The Group | At carrying amounts | Financial liabilities included in other non-current liabilities | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 841,059 | 769,061 |
The Group | At carrying amounts | Long-term interest-bearing loans and borrowings | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 54,207,386 | 40,289,703 |
The Group | At carrying amounts | Other non-current assets | ||
Fair Value Measurement Of Assets | ||
Financial assets | 204,718 | 261,156 |
The Group | At fair values | ||
Fair Value Measurement Of Assets | ||
Financial assets | 182,132 | 242,567 |
Financial liabilities | 54,023,581 | 40,136,080 |
The Group | At fair values | Financial liabilities included in other non-current liabilities | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 816,529 | 660,688 |
The Group | At fair values | Long-term interest-bearing loans and borrowings | ||
Fair Value Measurement Of Assets | ||
Financial liabilities | 53,207,052 | 39,475,392 |
The Group | At fair values | Other non-current assets | ||
Fair Value Measurement Of Assets | ||
Financial assets | ¥ 182,132 | ¥ 242,567 |
FINANCIAL AND CAPITAL RISK M_10
FINANCIAL AND CAPITAL RISK MANAGEMENT - Fair value hierarchy (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value measurement of liabilities | ||
Financial assets | ¥ 46,699,433 | |
Financial liabilities at amortized cost | ¥ 54,023,581 | 40,136,080 |
Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 1,766 | |
Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 1,766 | |
Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 816,529 | 660,688 |
Long-term interest-bearing loans and borrowings | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 53,207,052 | 39,475,392 |
Other non-current assets | ||
Fair value measurement of liabilities | ||
Financial assets | 182,132 | 242,567 |
Significant observable inputs (Level 2) | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 54,023,581 | 40,136,080 |
Significant observable inputs (Level 2) | Financial liabilities included in other non-current liabilities | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 816,529 | 660,688 |
Significant observable inputs (Level 2) | Long-term interest-bearing loans and borrowings | ||
Fair value measurement of liabilities | ||
Financial liabilities at amortized cost | 53,207,052 | 39,475,392 |
Significant observable inputs (Level 2) | Other non-current assets | ||
Fair value measurement of liabilities | ||
Financial assets | 182,132 | 242,567 |
The Group | ||
Fair value measurement of liabilities | ||
Financial assets | 36,222,681 | |
The Group | Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 89,426 | |
The Group | Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 89,426 | |
The Group | Assets measured at fair value | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 1,745,966 | 1,867,235 |
The Group | Futures contracts | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 16,141 | 9,534 |
The Group | Listed equity investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 6,441 | 9,701 |
The Group | Other unlisted investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 1,723,384 | 1,848,000 |
The Group | Quoted prices in active markets (Level 1) | Liabilities measured at fair value | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 1,766 | 89,426 |
The Group | Quoted prices in active markets (Level 1) | Futures contracts | ||
Fair value measurement of liabilities | ||
Liabilities measured at fair value | 1,766 | 89,426 |
The Group | Quoted prices in active markets (Level 1) | Assets measured at fair value | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 22,582 | 19,235 |
The Group | Quoted prices in active markets (Level 1) | Futures contracts | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 16,141 | 9,534 |
The Group | Quoted prices in active markets (Level 1) | Listed equity investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 6,441 | 9,701 |
The Group | Significant unobservable inputs (Level 3) | Assets measured at fair value | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | 1,723,384 | 1,848,000 |
The Group | Significant unobservable inputs (Level 3) | Other unlisted investments | ||
Fair value measurement of liabilities | ||
Assets measured at fair value | ¥ 1,723,384 | ¥ 1,848,000 |
FINANCIAL AND CAPITAL RISK M_11
FINANCIAL AND CAPITAL RISK MANAGEMENT - Transfers of fair value (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Net Assets Method | Significant unobservable inputs (Level 3) | ||
Fair Value Measurement Of Assets | ||
Equity investments in Size Industry Investment Fund | ¥ 5,000,000 | ¥ 5,600,000 |
FINANCIAL AND CAPITAL RISK M_13
FINANCIAL AND CAPITAL RISK MANAGEMENT - Gearing ratio (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Jan. 01, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Jan. 01, 2016CNY (¥) |
Gearing ratio | |||||||
Total liabilities (excluding deferred tax liabilities, income tax payable and deferred government grants) | ¥ 130,966,279 | ¥ 132,493,752 | |||||
Less: restricted cash, time deposits and cash and cash equivalents | (21,295,940) | (30,004,058) | |||||
Net debt | 109,670,339 | 102,489,694 | |||||
Total equity | $ 9,842,078 | 67,669,202 | ¥ 65,603,160 | 65,742,596 | ¥ 55,969,188 | ¥ 55,969,188 | ¥ 52,175,188 |
Add: net debt | 109,670,339 | 102,489,694 | |||||
Less: non-controlling interests | $ (2,218,648) | (15,254,312) | (26,054,567) | ||||
Total capital attributable to owners of the parent | ¥ 162,085,229 | ¥ 142,177,723 | |||||
Gearing ratio | 0.68 | 0.68 | 0.72 |
PARTLY-OWNED SUBSIDIARIES WIT_3
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018CNY (¥) | |
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Profit/(loss) for the year allocated to non-controlling interests | $ 106,834 | ¥ 734,535 | ¥ 992,248 | ¥ 851,093 | |
Accumulated balances of non-controlling interests at the reporting dates | 2,218,648 | 26,054,567 | ¥ 15,254,312 | ||
Revenue | 26,214,843 | 180,240,154 | 181,020,428 | 144,854,582 | |
Profit for the year | 215,401 | 1,481,012 | 2,405,276 | 1,216,790 | |
Total comprehensive income for the year | 196,133 | 1,348,534 | 1,731,418 | 1,857,624 | |
Current assets | 8,565,957 | 68,644,310 | 58,895,234 | ||
Non-current assets | 20,650,263 | 131,172,489 | 141,980,880 | ||
Current liabilities | 10,871,727 | 90,337,098 | 74,748,557 | ||
Non-current liabilities | 8,502,415 | 43,737,105 | 58,458,355 | ||
Net cash flows from operating activities | 1,893,415 | 13,018,176 | 13,205,572 | 11,609,309 | |
Net cash flows used in investing activities | (804,070) | (5,528,369) | (5,597,489) | (2,626,858) | |
Net cash flows from/(used in) financing activities | (2,365,860) | (16,266,476) | (3,398,994) | (6,105,257) | |
Effect of foreign exchange rate changes, net | $ 10,394 | ¥ 71,455 | ¥ (221,567) | ¥ 191,546 | |
Ningxia Energy | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Percentage of equity interest held by non-controlling interests | 29.18% | 29.18% | 29.18% | ||
Profit/(loss) for the year allocated to non-controlling interests | ¥ 214,479 | ¥ (5,670) | |||
Dividends distributed to non-controlling interests | 351,979 | 3,264 | |||
Accumulated balances of non-controlling interests at the reporting dates | 4,914,902 | 4,757,014 | |||
Revenue | 6,714,040 | 5,624,059 | |||
Total expenses | 6,555,933 | 5,691,240 | |||
Profit for the year | 158,107 | (67,181) | |||
Total comprehensive income for the year | 158,107 | (67,181) | |||
Current assets | 4,538,735 | 5,036,413 | |||
Non-current assets | 33,716,269 | 32,677,977 | |||
Current liabilities | 7,944,491 | 8,723,922 | |||
Non-current liabilities | 19,488,716 | 18,367,979 | |||
Net cash flows from operating activities | 2,755,612 | 2,110,801 | |||
Net cash flows used in investing activities | (1,616,513) | (3,933,743) | |||
Net cash flows from/(used in) financing activities | (991,998) | 1,350,275 | |||
Net increase/(decrease) in cash and cash equivalents | ¥ 147,101 | ¥ (472,667) | |||
Guizhou Huajin | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Percentage of equity interest held by non-controlling interests | 40.00% | 40.00% | 40.00% | ||
Profit/(loss) for the year allocated to non-controlling interests | ¥ 291,009 | ¥ 410,023 | |||
Dividends distributed to non-controlling interests | 200,000 | ||||
Accumulated balances of non-controlling interests at the reporting dates | 695,251 | 782,176 | |||
Revenue | 4,018,682 | 4,123,352 | |||
Total expenses | 3,291,160 | 3,098,295 | |||
Profit for the year | 727,522 | 1,025,057 | |||
Total comprehensive income for the year | 727,522 | 1,025,057 | |||
Current assets | 1,820,262 | 1,495,922 | |||
Non-current assets | 2,841,975 | 2,752,815 | |||
Current liabilities | 1,958,230 | 1,875,227 | |||
Non-current liabilities | 965,880 | 418,070 | |||
Net cash flows from operating activities | 1,104,759 | 1,162,069 | |||
Net cash flows used in investing activities | (75,066) | (7,437,104) | |||
Net cash flows from/(used in) financing activities | (1,075,311) | (1,835,878) | |||
Effect of foreign exchange rate changes, net | (221,567) | ||||
Net increase/(decrease) in cash and cash equivalents | ¥ (45,618) | ¥ (8,332,480) | |||
Guizhou Huaren | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Percentage of equity interest held by non-controlling interests | 60.00% | 60.00% | |||
Profit/(loss) for the year allocated to non-controlling interests | ¥ 20,783 | ||||
Accumulated balances of non-controlling interests at the reporting dates | 820,675 | ||||
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/(used in) financing activities | (115,222) | ||||
Net increase/(decrease) in cash and cash equivalents | ¥ (490,684) | ||||
Huayun | |||||
PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS | |||||
Percentage of equity interest held by non-controlling interests | 50.00% | 50.00% | 50.00% | ||
Profit/(loss) for the year allocated to non-controlling interests | ¥ 186,945 | ¥ 72,903 | |||
Accumulated balances of non-controlling interests at the reporting dates | ¥ 776,418 | 959,847 | |||
Percentage of voting rights | 51.00% | 51.00% | 51.00% | ||
Revenue | ¥ 8,099,579 | ¥ 3,085,361 | |||
Total expenses | 7,725,689 | 2,939,556 | |||
Profit for the year | 373,890 | 145,805 | |||
Total comprehensive income for the year | 373,890 | 145,805 | |||
Current assets | 2,151,021 | 2,372,120 | |||
Non-current assets | 7,549,859 | 8,338,220 | |||
Current liabilities | 3,525,808 | 4,342,807 | |||
Non-current liabilities | 4,122,238 | ¥ 3,947,839 | |||
Net cash flows from operating activities | 1,448,853 | 263,559 | |||
Net cash flows used in investing activities | (2,097,536) | (4,408,396) | |||
Net cash flows from/(used in) financing activities | 614,418 | 4,308,874 | |||
Net increase/(decrease) in cash and cash equivalents | ¥ (34,265) | ¥ 164,037 |
BUSINESS COMBINATION - Acquisit
BUSINESS COMBINATION - Acquisitions (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2018CNY (¥) | Aug. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Apr. 30, 2015CNY (¥)director | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 29, 2017CNY (¥) | Dec. 28, 2017CNY (¥) | Jan. 01, 2017CNY (¥) | Dec. 23, 2016CNY (¥) | Dec. 05, 2016CNY (¥) | Sep. 09, 2016CNY (¥) | Aug. 08, 2016 | Jul. 05, 2016CNY (¥) | Jan. 01, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
BUSINESS COMBINATION | ||||||||||||||||||
Registered capital | ¥ 800,000 | |||||||||||||||||
Total equity | ¥ 65,603,160 | ¥ 55,969,188 | $ 9,842,078 | ¥ 65,742,596 | ¥ 67,669,202 | ¥ 55,969,188 | ¥ 52,175,188 | |||||||||||
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 | $ 37,183 | ¥ 255,650 | 255,152 | ||||||||||||||
Bayer aluminum production line | ||||||||||||||||||
Assets | ||||||||||||||||||
Property, plant and equipment | 328,354 | ¥ 328,354 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Other payables and accrued expenses | 1,488 | 1,488 | ||||||||||||||||
Net assets | 326,866 | 326,866 | ||||||||||||||||
Difference recognized in equity | 11,418 | |||||||||||||||||
Cash consideration | 161,962 | |||||||||||||||||
Carrying values of assets disposed of | 176,322 | |||||||||||||||||
Total purchase consideration | ¥ 338,284 | |||||||||||||||||
Pseudoboehmite and activated silicon powder production lines | ||||||||||||||||||
Assets | ||||||||||||||||||
Property, plant and equipment | ¥ 28,860 | 29,966 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Other payables and accrued expenses | 2,503 | |||||||||||||||||
Net assets | 28,860 | 27,463 | ||||||||||||||||
Difference recognized in equity | 14,201 | |||||||||||||||||
Cash consideration | 43,061 | |||||||||||||||||
Total purchase consideration | ¥ 43,061 | |||||||||||||||||
Chinalco Shanghai | ||||||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||||
Equity interest acquired (as a percent) | 60.00% | |||||||||||||||||
Assets | ||||||||||||||||||
Property, plant and equipment | ¥ 494,725 | 414,766 | ||||||||||||||||
Land use rights | 731,967 | 742,771 | ||||||||||||||||
Inventories | 15 | 22 | ||||||||||||||||
Other current assets | 1,425 | 916 | ||||||||||||||||
Restricted cash and time deposits | 70,500 | 51,500 | ||||||||||||||||
Cash and cash equivalents | 2,164 | 1,156 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Trade and notes payables | 29 | 147 | ||||||||||||||||
Other payables and accrued expenses | 1,951 | 1,598 | ||||||||||||||||
Interest bearing loans and borrowings | 330,549 | 241,118 | ||||||||||||||||
Net assets | 968,267 | 968,268 | ||||||||||||||||
Non-controlling interests | 387,307 | |||||||||||||||||
Net assets acquired | 580,960 | |||||||||||||||||
Difference recognized in equity | 1,532,801 | |||||||||||||||||
Cash consideration | 2,113,761 | |||||||||||||||||
Total purchase consideration | 2,113,761 | |||||||||||||||||
Cash and bank balances acquired | ¥ 2,164 | 1,156 | ||||||||||||||||
Xinghua Technology | ||||||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||||
Equity interest acquired (as a percent) | 66.00% | |||||||||||||||||
Assets | ||||||||||||||||||
Property, plant and equipment | ¥ 1,134,185 | 978,596 | ||||||||||||||||
Land use rights | 8,339 | |||||||||||||||||
Inventories | 170,986 | 164,262 | ||||||||||||||||
Other current assets | 86,283 | 89,626 | ||||||||||||||||
Trade and notes receivables | 5,471 | 2,423 | ||||||||||||||||
Other non-current assets | 8,334 | 1,474 | ||||||||||||||||
Restricted cash and time deposits | 184,060 | 15,000 | ||||||||||||||||
Cash and cash equivalents | 19,828 | 1,910 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Trade and notes payables | 484,755 | 230,235 | ||||||||||||||||
Other payables and accrued expenses | 398,239 | 329,184 | ||||||||||||||||
Interest bearing loans and borrowings (non-current) | 14,909 | 34,086 | ||||||||||||||||
Other non-current liabilities | 43,921 | 47,900 | ||||||||||||||||
Interest bearing loans and borrowings | (354,181) | (338,393) | ||||||||||||||||
Income tax payable | (9,919) | |||||||||||||||||
Net assets | 311,562 | 273,493 | ||||||||||||||||
Non-controlling interests | 105,931 | |||||||||||||||||
Net assets acquired | 205,631 | |||||||||||||||||
Difference recognized in equity | 309,890 | |||||||||||||||||
Cash consideration | 515,521 | |||||||||||||||||
Total purchase consideration | 515,521 | |||||||||||||||||
Cash consideration paid | 335,090 | |||||||||||||||||
Cash and bank balances acquired | ¥ 19,828 | ¥ 1,910 | ||||||||||||||||
Consideration paid by way of transfer of notes receivables | 61,000 | |||||||||||||||||
Consideration unpaid | ¥ 121,000 | |||||||||||||||||
Xinghua Technology | Shanxi Aluminum Plant | ||||||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||||
Equity interest acquired (as a percent) | 33.00% | |||||||||||||||||
Liabilities | ||||||||||||||||||
Total purchase consideration | ¥ 257,760 | |||||||||||||||||
Xinghua Technology | Shandong Aluminum | ||||||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||||
Equity interest acquired (as a percent) | 33.00% | |||||||||||||||||
Liabilities | ||||||||||||||||||
Total purchase consideration | ¥ 257,760 | |||||||||||||||||
Qingdao Light Metal | ||||||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||||
Equity interest acquired (as a percent) | 100.00% | |||||||||||||||||
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 | ||||||||||||||||
Net assets acquired | 8,648 | 2,884 | ||||||||||||||||
Difference recognized in equity | 158,848 | |||||||||||||||||
Total purchase consideration | 161,732 | |||||||||||||||||
Cash and bank balances acquired | 5,688 | ¥ 10,924 | ||||||||||||||||
Shanxi Aluminum Sewage Treatment Plant | ||||||||||||||||||
Assets | ||||||||||||||||||
Property, plant and equipment | 52,001 | ¥ 48,995 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Net assets | ¥ 52,001 | 48,995 | ||||||||||||||||
Difference recognized in equity | 1,063 | |||||||||||||||||
Total purchase consideration | ¥ 50,058 | |||||||||||||||||
Yinxing Power | ||||||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||||
Equity interest acquired (as a percent) | 51.00% | |||||||||||||||||
Number of directors in board | 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% | |||||||||||||||||
Number of directors can appoint | director | 4 | |||||||||||||||||
Yinxing Power | Zhejiang Power | ||||||||||||||||||
BUSINESS COMBINATION | ||||||||||||||||||
Equity interest acquired (as a percent) | 49.00% |
BUSINESS COMBINATION - Guizhou
BUSINESS COMBINATION - Guizhou Huaren (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2018CNY (¥) | May 31, 2017CNY (¥) | Apr. 30, 2015CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) |
BUSINESS COMBINATION | |||||||
Registered capital | ¥ 800,000 | ||||||
Assets | |||||||
Intangible assets | $ | $ 0 | ||||||
Restricted cash | ¥ 2,168,192 | ¥ 2,165,288 | |||||
Cash and cash equivalents | ¥ 2,173,062 | ||||||
Liabilities | |||||||
Contract liabilities | ¥ (1,310,072) | ||||||
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 | $ 37,183 | 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, $ in Thousands | Jan. 01, 2018CNY (¥) | Feb. 28, 2017CNY (¥)director | Apr. 30, 2015CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
BUSINESS COMBINATION | ||||||
Registered capital | ¥ 800,000 | |||||
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 | $ 37,183 | 255,650 | ¥ 255,152 | ||
Shanxi Zhongrun | ||||||
BUSINESS COMBINATION | ||||||
Registered capital | ¥ 500,000 | |||||
Equity interest acquired (as a percent) | 40.00% | 40.00% | ||||
Number of directors in board | director | 5 | |||||
Number of directors can appoint | 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, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2018CNY (¥) | Jan. 01, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Jan. 01, 2016CNY (¥) |
Assets | |||||||||||
Intangible assets | $ | $ 0 | $ 0 | |||||||||
Restricted cash | ¥ 2,168,192 | ¥ 2,165,288 | |||||||||
Cash and cash equivalents | ¥ 2,173,062 | ||||||||||
Liabilities | |||||||||||
Contract liabilities | (1,310,072) | ||||||||||
Equity | 65,603,160 | $ 9,842,078 | 9,842,078 | 65,742,596 | ¥ 67,669,202 | ¥ 55,969,188 | ¥ 55,969,188 | ¥ 52,175,188 | |||
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 | $ 37,183 | ¥ 255,650 | ¥ 255,152 | |||||||
Shanxi Huaxing | |||||||||||
BUSINESS COMBINATION | |||||||||||
Equity interest acquired (as a percent) | 50.00% | 50.00% | 50.00% | ||||||||
Assets | |||||||||||
Property, plant and equipment | ¥ 7,327,807 | ||||||||||
Intangible assets | 728,067 | ||||||||||
Land use rights | 348,901 | ||||||||||
Deferred tax assets | 8,094 | ||||||||||
Other non-current assets | 60,336 | ||||||||||
Other current assets | 102,396 | ||||||||||
Inventories | 865,418 | ||||||||||
Trade and notes receivables | 44,706 | ||||||||||
Restricted cash | 203,350 | ||||||||||
Cash and cash equivalents | 81,344 | ||||||||||
Liabilities | |||||||||||
Deferred tax liabilities | (722,349) | ||||||||||
Interest bearing loans and borrowings | (1,743,036) | ||||||||||
Other non-current liabilities | 239,998 | ||||||||||
Contract liabilities | (617,827) | ||||||||||
Other payables and accrued expenses | (686,024) | ||||||||||
Trade and notes payables | (1,594,724) | ||||||||||
Net assets | 4,166,461 | ||||||||||
Share of net assets acquired | 4,166,461 | ||||||||||
Difference recognized in equity | 1,163,949 | ||||||||||
Cash consideration | 2,665,205 | ¥ 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, 2018 | Aug. 31, 2018 | Aug. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||||
Cash and cash equivalents | ¥ 2,173,062 | ||||
Liabilities | |||||
Contract liabilities | ¥ (1,310,072) | ||||
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) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Aug. 30, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Assets | ||||||
Intangible assets | $ | $ 0 | |||||
Restricted cash | ¥ 2,165,288 | ¥ 2,168,192 | ||||
Cash and cash equivalents | ¥ 2,173,062 | |||||
Liabilities | ||||||
Contract liabilities | (1,310,072) | |||||
Red Cliff Carbon Co., Ltd | ||||||
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 | |||||
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 | |||||
Chalco Mining | Red Chibi Great Wall | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 77.65% | |||||
China Great Wall Aluminum | Chalco Mining | Red Cliff Carbon Co., Ltd | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 57.69% | |||||
Henan Great Wall Zhongxin | Chalco Mining | Red Chibi Great Wall | ||||||
BUSINESS COMBINATION | ||||||
Equity interest acquired (as a percent) | 19.96% |
BUSINESS COMBINATION - Longhua
BUSINESS COMBINATION - Longhua Logistics (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Sep. 17, 2018 | Aug. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||||
Cash and cash equivalents | ¥ 2,173,062 | ||||
Liabilities | |||||
Contract liabilities | ¥ (1,310,072) | ||||
East Light Logistics | |||||
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 | ||||
China Aluminum Logistics Group Corporation Co., Ltd. | East Light Logistics | |||||
BUSINESS COMBINATION | |||||
Equity interest acquired (as a percent) | 51.00% |
DISPOSAL OF BUSINESSES (Details
DISPOSAL OF BUSINESSES (Details) ¥ in Thousands, $ in Thousands | Oct. 31, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jan. 01, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Jan. 01, 2017CNY (¥) | Jan. 01, 2016CNY (¥) | Dec. 31, 2015CNY (¥) |
Net assets disposed of: | |||||||||||
Property, plant and equipment | ¥ 90,371,571 | $ 15,445,185 | ¥ 106,193,369 | ¥ 95,627,577 | |||||||
Intangible assets | 10,592,249 | 1,873,226 | 12,879,365 | 10,637,633 | |||||||
Deferred tax assets | 1,542,569 | 1,606,150 | |||||||||
Inventories | 2,975,735 | 20,459,668 | 20,547,556 | ||||||||
Trade and notes receivables | 1,178,174 | 8,100,532 | 8,008,937 | ||||||||
Other current assets | 1,312,334 | 9,022,953 | 10,074,225 | ||||||||
Cash and cash equivalents | 23,848,344 | 2,782,438 | 19,130,652 | $ 4,048,559 | 27,835,866 | ¥ 20,779,604 | |||||
Other non-current liabilities | (354,616) | (2,438,164) | (2,453,660) | ||||||||
Trade and notes payables | (2,037,321) | (14,007,600) | (12,360,441) | ||||||||
Interest-bearing loans and borrowings | (7,884,137) | (54,207,386) | (40,289,703) | ||||||||
Non-controlling interests | 2,218,648 | 15,254,312 | 26,054,567 | ||||||||
Total equity | 55,969,188 | 9,842,078 | 67,669,202 | ¥ 65,603,160 | 65,742,596 | ¥ 55,969,188 | ¥ 52,175,188 | ||||
Gain on disposal | 571,270 | ||||||||||
Investments in joint ventures | ¥ 6,240,200 | $ 493,542 | ¥ 3,393,349 | ¥ 6,007,624 | |||||||
Environmental Protection Business | |||||||||||
Net assets disposed of: | |||||||||||
Property, plant and equipment | ¥ 1,187,802 | ||||||||||
Other payables and accrued expenses | (2,665) | ||||||||||
Trade and notes payables | (2,042) | ||||||||||
Net assets | 1,183,095 | ||||||||||
Gain on disposal | 571,270 | ||||||||||
Cash consideration | ¥ 1,754,365 | ||||||||||
Shandong Engineering | |||||||||||
DISPOSAL OF BUSINESSES | |||||||||||
Ownership interest in subsidiary (in percent) | 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. 15, 2017CNY (¥)shareholder | Feb. 14, 2017 | Aug. 31, 2018CNY (¥) | Jun. 30, 2018CNY (¥) | Mar. 31, 2018CNY (¥) | Nov. 30, 2017CNY (¥) | Sep. 30, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
DISPOSAL OF BUSINESSES | ||||||||
Gain (loss) on disposal | ¥ 571,270 | |||||||
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) |
OTHER EQUITY INSTRUMENTS (Detai
OTHER EQUITY INSTRUMENTS (Details) ¥ in Thousands, $ in Thousands | Oct. 31, 2018USD ($) | Oct. 31, 2018CNY (¥) | Oct. 19, 2018CNY (¥) | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | Oct. 27, 2015CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
OTHER EQUITY INSTRUMENTS | ||||||||||
Proceeds from issuance of the Senior Perpetual Securities after the issuance costs | $ 289,143 | ¥ 1,988,000 | ¥ 3,513,068 | |||||||
Repayments of borrowings in principal and interest | $ 10,260,568 | ¥ 70,546,537 | ¥ 78,866,459 | ¥ 48,659,566 | ||||||
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) | 3 years | |||||||||
Chalco Hong Kong | 2013 Senior Perpetual Securities | ||||||||||
OTHER EQUITY INSTRUMENTS | ||||||||||
Repayments of borrowings in principal and interest | $ 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 the Senior Perpetual Securities after the issuance costs | $ 498,000 | ¥ 3,374,000 | ||||||||
Initial spread (as a percent) | 2.931% | |||||||||
Margin rate (as a percent) | 5.00% |
COMMITMENTS (Details)
COMMITMENTS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Capital commitments on property, plant and equipment | ||
Contracted, but not provided for | ¥ 3,942,933 | ¥ 2,967,541 |
Commitments under operating leases | ||
Total commitments under operating leases | 12,989,524 | 15,315,482 |
Other capital commitments | ||
Commitments to make capital contributions | 542,800 | 374,800 |
Associates | ||
Other capital commitments | ||
Commitments to make capital contributions | 82,800 | 374,800 |
Joint ventures | ||
Other capital commitments | ||
Commitments to make capital contributions | 460,000 | |
Within 1 year | ||
Commitments under operating leases | ||
Total commitments under operating leases | 541,541 | 658,574 |
In the second to fifth years, inclusive | ||
Commitments under operating leases | ||
Total commitments under operating leases | 1,880,058 | 2,112,800 |
After 5 years | ||
Commitments under operating leases | ||
Total commitments under operating leases | ¥ 10,567,925 | ¥ 12,544,108 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details) - CNY (¥) ¥ / shares in Units, ¥ in Billions | Apr. 24, 2019 | Mar. 20, 2019 | Mar. 15, 2019 | Mar. 14, 2019 | Jan. 22, 2019 | Jan. 16, 2019 |
Short-term bonds | Issuance of short-term bonds | ||||||
EVENTS AFTER THE REPORTING PERIOD | ||||||
Face value | ¥ 1 | ¥ 3 | ¥ 2 | ¥ 1 | ¥ 2 | |
Par value (RMB per unit) | ¥ 100 | ¥ 100 | ¥ 100 | ¥ 100 | ¥ 100 | |
Interest rate (as a percent) | 2.89% | 2.98% | 2.90% | 2.64% | 2.99% | |
2022 corporate 3.80% bond | Issuance of medium term notes | ||||||
EVENTS AFTER THE REPORTING PERIOD | ||||||
Face value | ¥ 2 | |||||
Par value (RMB per unit) | ¥ 100 | |||||
Interest rate (as a percent) | 3.80% |