In the second half of this year, the electricity price cost of electrolytic aluminum enterprises in Henan is relatively high, but the aluminum price is generally sluggish. According to Mysteel's calculations, calculated at full cost, the proportion of theoretical losses in the electrolytic aluminum industry in October has expanded from 20% in September to 38%, of which the production cost of electrolytic aluminum in Henan has remained above 20,000 yuan/ton.

Investors in the performance meeting asked the company's electrolytic aluminum cost price, but Zhongfu Industrial did not respond positively. Qian Yu, the general manager of the company, said that in order to reduce the impact of raw material price fluctuations on the company, the company will support the layout of industrial chains such as coal mining, thermal power generation, and carbon. The possibility of a sharp decline is small, and there are no plans to cut production for the time being. At the same time, the aluminum deep processing business has gradually become a stable source of profit for the company, and its pricing adopts the "Yangtze River spot (or LME) aluminum ingot price + processing fee" model.

It is worth mentioning that for the future production capacity plan of the aluminum deep processing business, Qian Yu revealed in the performance meeting that as of now, the company's annual output of 120,000 tons of high-precision aluminum sheet and strip project is under debugging, and it is expected to be officially put into production in December 2022; The high-precision aluminum alloy plate and ingot project with an annual output of 150,000 tons has entered the stage of installation and commissioning, and is expected to be put into production in January 2023; the annual output of 120,000 tons of green new packaging materials and the annual output of 60,000 tons of aluminum and aluminum alloy strip The first-phase project of the layer production line (with an annual output of 30,000 tons) will carry out equipment installation and is expected to be put into production in the first half of 2023.