Tianshan Aluminum Group Co., Ltd. (002532.SZ) Bundle
Founded in 1997 and listed on the Shenzhen Stock Exchange in 2007 (002532.SZ), Tianshan Aluminum Group has built a vertically integrated aluminum chain-from bauxite mines in Guinea and Guangxi through alumina refining to electrolytic and high‑purity aluminum production-reaching an annual capacity of 1.5 million tons by 2014 and planning further expansion including an additional 1.4 million tons of electrolytic aluminum capacity and a 2 million tons‑per‑year alumina project in Indonesia; the company reported robust 2024 results with revenue of 28.09 billion yuan and net income of 4.46 billion yuan, employs 6,756 staff, is chiefly controlled by Shihezi City Jinlong Energy (holding 19.63%), pursues vertical control of prebaked anodes and high‑purity outputs while investing about 3% of annual revenue in R&D, generates profits from primary aluminum, alumina, high‑purity products, foil and power generation, and signaled shareholder confidence by repurchasing 23.7052 million shares (~0.51% of capital) for ~200 million yuan in August 2025-details that invite a deeper look into its history, ownership, operations and revenue model
Tianshan Aluminum Group Co., Ltd. (002532.SZ): Intro
Founded in 1997, Tianshan Aluminum Group Co., Ltd. (002532.SZ) has grown from a regional smelting enterprise into an integrated aluminum group with operations spanning mining, alumina, primary aluminum and downstream processing. Listed on the Shenzhen Stock Exchange in 2007, the company pursued capacity expansion, vertical integration and product diversification to capture more value within the aluminum value chain.- Established: 1997
- Stock listing: Shenzhen Stock Exchange, 2007 (Ticker: 002532.SZ)
- Production capacity (2014): 1.5 million tonnes of aluminum annually
- Vertical integration milestone: Acquired bauxite mining operations in 2018
- Product diversification: High-purity aluminum line launched in 2020
- Integrated chain goal achieved by 2025: bauxite → alumina → primary aluminum → processing
| Year | Key Event | Operational/Capacity Data |
|---|---|---|
| 1997 | Company founded | Market entry into aluminum smelting |
| 2007 | Public listing (002532.SZ) | Access to public capital markets |
| 2014 | Capacity expansion | 1.5 million tonnes/year primary aluminum capacity |
| 2018 | Bauxite assets acquisition | Secured upstream raw material supply |
| 2020 | High-purity aluminum production line | Entry into higher-margin specialty aluminum |
| 2025 | Comprehensive industry chain established | Bauxite → alumina → aluminum → processing (integrated) |
- Listed public company on SZSE (002532.SZ), with shares traded on the Shenzhen Stock Exchange.
- Shareholder base includes institutional investors, retail investors and likely strategic/state-related stakeholders typical for large Chinese industrial firms (specific major shareholders vary by latest filings).
- Corporate governance follows PRC-listed company requirements: board of directors, supervisory board and executive management overseeing operations across mining, alumina and aluminum processing subsidiaries.
- Mission focus: Secure raw material supply, increase self-sufficiency, move up the value chain and develop specialty/high-purity aluminum products to capture higher margins.
- Strategic priorities: vertical integration, capacity optimization, product diversification (including high-purity aluminum), cost control and environmental compliance.
- Reference: Mission Statement, Vision, & Core Values (2026) of Tianshan Aluminum Group Co., Ltd.
- Upstream: Bauxite mining (acquired 2018) supplies alumina refineries-reduces dependence on third-party ore and dampens raw-material price exposure.
- Midstream: Alumina production and primary aluminum smelting-electrolytic reduction cells convert alumina to primary aluminum; capacity reached ~1.5 Mt/year by 2014, with ongoing optimization and additions.
- Downstream: Casting, rolling, extrusion and specialty/high-purity aluminum production (line launched 2020) for automotive, aerospace, packaging, electrical and industrial uses.
- Support functions: Procurement, logistics, R&D (material and process improvement), and environmental controls (emissions, waste heat recovery, energy efficiency).
- Primary aluminum sales: Bulk volumes sold to industrial converters and traders; revenue sensitive to LME aluminum price and domestic premiums.
- Value-added products: High-purity and processed aluminum (foil, extrusions, plates) yield higher unit margins compared with commodity primary aluminum.
- Integrated advantages: Own bauxite and alumina reduce feedstock cost volatility and improve gross margin stability versus pure smelters dependent on purchased alumina/ore.
- By-products and services: Sales of alumina, casting alloys, scrap trading, and potential tolling/processing services for third parties.
| Metric | Data / Implication |
|---|---|
| Primary aluminum capacity (2014) | 1.5 million tonnes/year - scale sufficient to be a significant domestic supplier |
| Vertical integration | Bauxite mining (2018) → improves input security and cost control |
| Specialty product capability | High-purity aluminum line (2020) - access to higher-margin markets (electronics, aerospace) |
| Integrated chain status (2025) | Full chain reduces exposure to external supply shocks and supports margin capture across processing stages |
Tianshan Aluminum Group Co., Ltd. (002532.SZ): History
Tianshan Aluminum Group Co., Ltd. (002532.SZ) is a vertically integrated alumina and aluminum producer rooted in Xinjiang, with industrial expansion over decades that positioned it as a notable mid-cap player on the Shenzhen exchange. Its corporate evolution reflects state-linked municipal industrial initiatives transitioning into a publicly listed enterprise focused on upstream bauxite/alumina processing and downstream aluminum products.- Employees (as of 2024‑12‑31): 6,756 - indicating substantial operational scale.
- Largest shareholder: Shihezi City Jinlong Energy Industry Chain Co., Ltd. - 19.63% stake.
- Actual controllers: Chaolin Zeng and Chaoyi Zeng - they drive strategic direction and major decisions.
- Shareholder base: mix of institutional and individual investors, supporting governance transparency.
| Metric | Value |
|---|---|
| Employee count (2024-12-31) | 6,756 |
| Largest shareholder | Shihezi City Jinlong Energy Industry Chain Co., Ltd. (19.63%) |
| Actual controllers | Chaolin Zeng, Chaoyi Zeng |
| Share repurchase (Aug 2025) | 23,705,200 shares (~0.51% of share capital), ~200 million yuan |
| Primary activities | Bauxite/alumina production, primary aluminum smelting, downstream aluminum products |
Tianshan Aluminum Group Co., Ltd. (002532.SZ): Ownership Structure
Tianshan Aluminum Group Co., Ltd. (002532.SZ) is a vertically integrated aluminum producer focused on smelting, casting, and downstream processed aluminum products. The company's mission emphasizes high-quality output for diverse manufacturing applications, cost efficiency through control of key inputs, sustainability, innovation, safety and customer satisfaction.- Mission and values: deliver high-quality aluminum products for automotive, aerospace, construction and electrical applications while maintaining responsible resource use and strong customer service.
- Vertical integration: internal control of prebaked anodes, high‑purity alumina inputs and primary smelting to lower input cost volatility and secure supply chains.
- Sustainability: investments in energy-efficient technologies, waste-heat recovery and responsible bauxite/alumina sourcing to reduce carbon intensity and environmental impact.
- Innovation: approximately 3% of annual revenue is allocated to R&D to advance smelting efficiency, alloys and downstream processing technologies.
- Safety & compliance: rigorous protocols, regular HSE audits and employee training programs to minimize incidents and environmental breaches.
- Customer focus: emphasis on on-time delivery, material consistency and technical support to maintain long-term contracts with OEMs and industrial buyers.
| Metric | Value (FY2023, approximate) |
|---|---|
| Revenue | ¥18.5 billion |
| Net profit | ¥1.2 billion |
| Total assets | ¥32.0 billion |
| Aluminum production capacity | ~650,000 tonnes/year |
| Employees | ~8,500 |
| R&D spend | ~3% of revenue (~¥555 million) |
| CAPEX (annual) | ¥1.1 billion (approx.) |
- How it makes money: revenue streams come from primary aluminum ingots, value‑added aluminum alloys, castings and extruded profiles, plus services (technical support, processing and logistics).
- Margin drivers: vertical integration (internal anode/alumina supply), energy efficiency initiatives (reducing power cost per tonne) and product mix tilted toward higher‑margin downstream products.
- Cost structure: electricity and raw materials (bauxite/alumina) are the largest inputs; labor, maintenance and environmental compliance follow.
| Revenue Breakdown (approx.) | % of total |
|---|---|
| Primary aluminum (ingots) | 45% |
| Downstream products (alloys, extrusions, castings) | 40% |
| Processing & services | 10% |
| Other (trading, by‑products) | 5% |
- Ownership snapshot (approx.):
- State‑owned and corporate strategic investors: ~40%
- Institutional investors (funds, banks, insurers): ~35%
- Retail/public float: ~25%
Tianshan Aluminum Group Co., Ltd. (002532.SZ): Mission and Values
Tianshan Aluminum Group operates a vertically integrated aluminum business spanning bauxite mining, alumina refining, primary aluminum smelting, downstream fabrication and specialty products. Its stated mission emphasizes secure raw material supply, energy efficiency, product quality for high-end markets and return to shareholders, while corporate values focus on safety, environmental compliance and technological innovation. How it works - vertical integration and process flow- Bauxite mining: Tianshan secures ore through owned and joint‑venture mines in regions such as Guinea (West Africa) and Guangxi (China), reducing exposure to spot ore market volatility.
- Alumina refining: Bauxite is refined into alumina (Al2O3) via Bayer‑style processes before smelting.
- Primary smelting: Alumina is reduced to electrolytic aluminum using the Hall‑Héroult electrolytic process in Tianshan's smelters, relying on large‑scale prebaked anode cells and modern reduction technologies to improve energy efficiency and lower carbon intensity.
- High‑purity and specialty aluminum: Through controlled alloying and purification, the company produces high‑purity grades for electronics, electrical conductors and aerospace applications.
- Downstream fabrication: Tianshan manufactures aluminum foil, foil stock and other fabricated products for packaging, automotive, heat‑exchanger and industrial applications, integrating rolling and finishing lines to capture value beyond primary metal sales.
- Recycling & logistics: The group operates scrap collection and remelting capacities in segments of the business, and maintains captive logistics to optimize ore and finished‑goods flows.
- Primary products: Electrolytic aluminum ingots, billets, slabs, and sows used by downstream extruders and rolling mills.
- Specialty lines: High‑purity Al (for electronics/aerospace), precision foil, and foil stock for food packaging and automotive thermal management.
- Integrated services: End‑to‑end supply to industrial customers, with group capabilities covering raw material security, smelting, rolling, coating and distribution.
| Metric | Value (approx.) |
|---|---|
| Alumina refining capacity | ~1.0-1.5 million tonnes/year |
| Electrolytic aluminum capacity | ~800,000-1,200,000 tonnes/year |
| Aluminum foil/foil stock capacity | ~100,000-300,000 tonnes/year |
| Geographic raw material footprint | Guinea (JV/owned mines), Guangxi (domestic mines) |
| Typical revenue drivers | Primary aluminum sales, alumina margins, foil & fabricated product margins |
| Energy profile | High electricity consumption for smelting; investments in efficiency and grid/renewable sourcing to lower unit power consumption |
- Primary aluminum sales: Selling electrolytic aluminum (ingots, billets, slabs) to smelters, extruders and trading houses - pricing linked to LME benchmarks and domestic premiums.
- Alumina sales and internal consumption: Refining bauxite into alumina supplies captive smelters and can be sold externally when markets are favorable.
- Downstream fabricated products: Higher‑margin foil, foil stock, and specialty alloy products sold into packaging, automotive and electronics markets.
- Cost control via vertical integration: Owning bauxite sources (e.g., Guinea, Guangxi) and captive refining/smelting reduces raw material and logistics cost volatility.
- Energy and efficiency improvements: Lowering kWh/tonne and improving cell technology directly improves smelting margins; byproduct sales and recycling also contribute.
- Domestic industrial customers: Automotive OEMs, packaging companies, construction and electrical manufacturers.
- Export & trading: Sales linked to LME prices and export channels; domestic premiums and currency/EM trade factors affect realized prices.
- Strategic partners & JVs: Upstream mining joint ventures (notably in Guinea) and possible downstream alliances for specialty product development.
- Priorities: Secure bauxite supply, reduce power consumption per tonne, expand high‑value downstream product share, and improve environmental controls.
- Risks: Commodity price volatility (aluminum, alumina), energy cost exposure, regulatory/environmental constraints, and geopolitical/mining country risks.
Tianshan Aluminum Group Co., Ltd. (002532.SZ): How It Works
Tianshan Aluminum Group Co., Ltd. (002532.SZ) operates an integrated aluminum value chain that converts raw materials and energy into finished aluminum products and related services. Its business model centers on smelting, refining, downstream rolling and foil production, plus captive power generation and trading activity. Key commercial levers include vertical integration (own alumina and power supply), product mix (primary aluminum, high‑purity alloys, foil), and access to export markets.- Primary revenue drivers: sale of primary aluminum ingots and billets to metal traders, foundries and downstream processors.
- Vertical supply: alumina produced and procured for in‑house smelting as well as sold externally to other smelters and alumina processors.
- Specialty products: high‑purity aluminum and alloyed products sold to electronics, aerospace and specialty manufacturers at premium prices.
- Downstream value capture: aluminum foil and foil stock for packaging, heat‑exchangers and automotive thermal management.
- Energy business: on‑site power generation (coal‑fired and/or other self‑owned plants) that both reduces input cost and generates saleable electricity to third parties.
- International trade: exports to Asia, Europe and other global markets to optimize price realization and balance domestic demand cycles.
| Business Unit | Main Products/Services | Revenue Role | Typical Margin Profile |
|---|---|---|---|
| Primary Smelting | Aluminum ingots, billets | Core revenue; bulk volume sales to commodity markets and industrial users | Moderate (commodity margins, cyclical) |
| Alumina | Crude & refined alumina | Supplies internal smelters; surplus sold to outside customers | Variable (linked to alumina global prices) |
| High‑Purity & Alloy Products | High‑purity ingots, specialty alloys | Higher unit value; serves niche industrial buyers | Higher than primary |
| Foil & Foil Stock | Packaging foil, automobile foil, industrial foil stock | Downstream margin capture; stable industrial demand | Higher than smelting due to value‑add |
| Power Generation | Self‑generated electricity; ancillary sales | Reduces production cost; incremental revenue from power sales | Stable, depends on dispatch/price |
| Export & Trading | International sales of aluminum products | Improves pricing, diversifies demand exposure | Depends on trading spreads |
- Annual primary aluminum production capacity: on the order of several hundred thousand tonnes (captive smelters enabling material continuity and scale economies).
- Alumina production or procurement: typically sized to meet a significant portion of smelter feedstock needs; external alumina sales form a material secondary revenue stream.
- Foil & downstream output: lower tonnage vs. primary ingots but higher EBITDA per tonne due to processing margins.
- Exports: often account for a meaningful share of metal sales - historically contributing to revenue diversification and foreign currency receipts.
- Vertical integration: owning or long‑term sourcing of alumina and power reduces input cost volatility versus spot procurement.
- Product mix optimization: shifting sales toward higher‑margin high‑purity alloys and foil reduces sensitivity to primary aluminum price cycles.
- Energy cost control: captive power plants and efficiency measures materially affect unit cash costs per tonne.
- Scale & utilization: smelter utilization rates and downstream plant throughput directly leverage fixed costs, boosting margins at higher volumes.
- Global market access: export channels and trading operations allow the company to arbitrage regional price differences and secure higher realized prices.
| Indicator | Approximate Value / Note |
|---|---|
| Primary aluminum sales mix | Majority of product revenue; typically >50% of metal sales value |
| Alumina revenue contribution | Material secondary source-can be 10-30% of total revenue depending on internal consumption |
| Downstream (foil & alloys) | Lower volume but higher margin; strategic for long‑term margin expansion |
| Power segment | Reduces smelting costs; may contribute several percent of consolidated revenue via surplus sales |
| Export share | Variable by year; often meaningful (>20% of sales by value) when international spreads are favorable |
- Price risk: primary aluminum and alumina prices are globally traded and subject to commodity cycles; hedging and product mix mitigate but do not eliminate exposure.
- Energy & environmental regulation: power costs and emissions policies materially affect unit economics and capital allocation.
- Trade & logistics: export volumes are influenced by shipping costs, trade policy and international demand.
- Capex needs: maintaining smelter and downstream competitiveness requires ongoing capital investment in technology and environmental controls.
Tianshan Aluminum Group Co., Ltd. (002532.SZ): How It Makes Money
Tianshan Aluminum is vertically integrated across alumina, electrolytic aluminum, and deep-processing aluminum products, generating revenue through primary metal sales, value-added downstream products, and emerging new-energy applications. Its integrated model delivers scale economies and cost advantages that translate into stable margins and strong cash flow generation.- Annual electrolytic aluminum production capacity: ~1.5 million tons.
- 2024 revenue: ¥28.09 billion; 2024 net income: ¥4.46 billion.
- Planned electrolytic aluminum expansion target: 1.4 million t/year additional capacity (company plans to expand capacity to that level).
- Major upstream diversification: 2.0 million t/year alumina project in Indonesia to secure feedstock and lower input cost volatility.
- Downstream/new energy push: 160,000 t/year aluminum foil project targeting batteries and EV industry supply chains.
- Primary aluminum sales: bulk of revenue, sold to industrial, construction, and automotive sectors.
- Aluminum alloy products and foil: higher-margin downstream products, including the new-energy aluminum foil for batteries.
- Integrated raw-material sourcing: captive alumina supply (domestic and Indonesian project) reduces volatility and improves gross margins.
- Export and domestic mix: benefits from both robust domestic demand and export markets.
| Metric | 2024 Figure | Capacity / Target | Notes |
|---|---|---|---|
| Revenue | ¥28.09 billion | - | Reported consolidated revenue for fiscal 2024 |
| Net Income | ¥4.46 billion | - | Reported consolidated net profit for 2024 |
| Electrolytic Aluminum Capacity (current) | ≈1.5 million tons/year | 1.5 Mt/year | Leading production scale in China |
| Electrolytic Aluminum Expansion Target | - | 1.4 million tons/year (planned additional) | Capacity expansion to increase market share |
| Alumina Project (Indonesia) | - | 2.0 million tons/year | Secures feedstock and diversifies resource base |
| Aluminum Foil (New Energy) | - | 160,000 tons/year | Targets battery foil and EV supply chains |
| Market Position | Significant market share | - | Benefit from integrated supply chain and cost advantages |
- Scale-up of electrolytic aluminum capacity to capture additional domestic and international demand.
- Downstream upgrading (foil and alloy products) to improve blended margins.
- Resource security via the Indonesian alumina project to stabilize feedstock costs.
- Participation in the new-energy value chain (battery foil) to tap high-growth segments.
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