China Corporate News: Chalco Posts ¥8b Loss on Low Aluminum Prices; China Eastern Turns to Europeans

Chalco Posts ¥8b Loss on Low Aluminum Prices
Aluminum Corp of China Ltd (NYSE: ACH, HKG: 2600, SHA: 601600), the world's second biggest producer of the metal, said it posted ¥8.23 billion in losses last year because of lower aluminum prices and a 38% rise in financial fees. The worse-than-expected loss stood in stark contrast to a ¥238 million net profit in 2011. Aluminum prices fell 6% in 2012 from the year before. However, the company expects to return to profit this year, looking to faster global economic recovery.

China Eastern Turns to Europeans
China Eastern Airlines Corp (NYSE: CEA, HKG: 0670, SHA: 600115), the nation's second biggest carrier by passenger traffic, has deployed some aircraft serving its Japan routes to fly to other regions as escalating territorial disputes reduced travel demand between China and Japan, president Ma Xulun told the Wall Street Journal. China Eastern, which has the biggest share of the China-Japan market among rivals, hopes to rely on European passengers to help fill up some empty seats as it does not expect a speedy recovery in demand for flights between the two countries, Ma said. The Japan market was one of China Eastern's most profitable markets, accounting for 30% of its total international capacity. Analysts estimate that the market contributed 35% of the airline's total operating profit before the spat. Since September 2012, the airline has cut passenger capacity to Japan by 7%, according to Ma said. China Eastern's net profit fell 29.8% to ¥3.43 billion last year due to weak travel demand and high fuel costs.

China Life Earnings Tumble 40% on Low Investment Return
China Life Insurance Co (NYSE: LFC, HKG: 2628, SHA: 601628), the nation's biggest insurer by premium income, said its net profit tumbled 39.7% to ¥11.06 billion last year as the bearish capital market hurt its return on investment and it wrote down assets. Revenue was up 5.2% to ¥405.38 billion. The company said it captured a leading 32.4% share in 2012 of total premium incomes from China's life insurance market.

China Cosco Remains Stuck in Huge Loss
China Cosco Holdings Co (HKG: 1919, SHA: 601919), the nation's largest shipping company, posted ¥9.56 billion in losses for 2012 as a result of low rates of dry bulk cargo and high fuel costs. Although the losses were better than the ¥10.45 billion recorded in 2011, the company faces a delisting risk as it has posted losses for two consecutive years. Revenue was up 4.6% to ¥72.06 billion last year. China Cosco shipped 224.56 million tons of dry bulk cargo last year, down 14.6% from 2011.

ICBC Profits ¥654m Per Day
Industrial & Commercial Bank of China Ltd (HKG: 1398, SHA: 601398) continued to be China as well as the world's most profitable bank after its earnings grew 14.5% to ¥238.53 billion last year. That was equivalent to profiting ¥654 million per day, ahead of China Construction Bank Corp's (HKG: 0939, SHA: 601939) ¥537 million per day, Agricultural Bank of China Ltd's (HKG: 1288, SHA: 601288) ¥398 million per day, Bank of China Ltd's (HKG: 3988, SHA: 601988) ¥380 million per day and Bank of Communications Co's (HKG: 3328, SHA: 601328) ¥164 million per day.

$1 = ¥6.21