Yuefeng Aluminum Industry released the record of investor relations activities on May 12th. The company was visited by 26 institutions on May 9th, 2025. The types of institutions included QFII, insurance companies, others, fund companies, securities companies, and private equity institutions. Introduction to the main contents of investor relations activities:
Question: I. The company's operating conditions in the first quarter of 2025
Answer: In the first quarter of 2025, the company's production and sales volume reached a new historical high. The sales volume was nearly 380,000 tons, increasing by 11% year-on-year. The operating income reached 8.1 billion yuan, increasing by 13% year-on-year. The net profit was 440 million yuan, increasing by 21% year-on-year. The company is firmly committed to promoting the improvement of its product structure through technological innovation, emphasizing "quality enhancement and efficiency improvement", focusing on "high-end intelligent manufacturing", and laying out to seize the future track. The development and stable supply of products in emerging fields such as new energy, automotive transportation, and robotics have contributed to the stable growth of the company's production and sales.
Question: 2. What impact does the recent "reciprocal tariff" policy of the United States have on the company's foreign trade
Answer: In 2018, during the Sino-US trade war, the United States imposed anti-dumping and countervailing duties on Chinese aluminum products. Since then, Yuefeng Aluminum Industry has had less direct exports to the United States. Steel and aluminum products are not included in the recent "reciprocal tariff" policies of the United States. This year, the volume of foreign trade sales has increased compared with the previous period, and foreign trade orders are showing a recovery trend.
Question: III. Company Development Plan for 2025
Answer: The company focuses on its core business and concentrates on "high-end intelligent manufacturing" and "low-carbon circular economy". This year, the focus will be on building high-end heat treatment lines to promote the upgrading of products. Special attention will be paid to the aluminum demand in fields such as new energy, automotive materials, semiconductors, industrial robots and low-altitude flight. We will actively develop products in related fields and continuously improve the company's product structure. This year, the production capacity of the subsidiary Yuefeng New Materials and overseas bases has continued to be released, ensuring a significant increase in the company's production and sales scale in 2025.
Question: 4. Can the scale of the company's recycled aluminum application for grade maintenance continue to expand in 2025
Answer: In the second half of 2024, the European Union began to require the submission of carbon emission data for products. After the company's preliminary calculation, it was found that recycled aluminum products have a significant advantage in carbon reduction. The company is firmly committed to continuously promoting the development of the recycled aluminum business. By the end of 2024, China's customs will open up the import of deformed waste aluminum and support the development of enterprises applying recycled aluminum for grade preservation. The company has established an international procurement department for recycled aluminum, further expanding the sources of waste aluminum procurement, actively promoting the application of recycled aluminum products, and continuously leading the low-carbon development of the industry.
Question: V. How are the company's current orders on hand
Answer: Over the years, the peak consumption season for aluminum begins in March. Currently, the number of orders on hand has increased, which can meet the company's production schedule for one and a half months.
Question: 6. What is the current level of product processing fees
Answer: Currently, the processing fees for the company's products are stable and improving. In the first quarter, the processing fees for products such as CTP/PS boards, can materials, and lid materials of the company and the industry were raised.
Question: VII. What are the core advantages of the company's products after the EU implements the carbon border tax
Answer: The company is a leading enterprise in the application of recycled aluminum for grade protection. It has successfully obtained the GRS4.0 global recycling standard certificate. Many of its products have completed the SGS carbon footprint inspection. The low-carbon advantages of recycled aluminum products are obvious and have strong appeal to both domestic and foreign customers. The vigorous promotion of recycled aluminum products not only guides the low-carbon development of the industry but also enables the company to obtain a green and low-carbon premium and increase its profit margin.
Question: 8. What new projects will there be this year
Answer: The wholly-owned subsidiary, Yuefeng New Materials, is building the "Aluminum Industrial Park Project for Automobiles and Green Energy", which will invest in the construction of high-end equipment such as air cushion furnaces, roller bottom furnaces, and chemical surface treatment lines for aluminum sheet and strip production. It aims to build core competitiveness through technological breakthroughs, strategically layout to seize the future track, and actively create a second growth curve. Focus on emerging demands in fields such as robotics, low-altitude economy, aerospace and military industry, and new energy, and accelerate high-end transformation and upgrading. We will continue to deeply cultivate the recycling and utilization system of renewable resources, activate the vitality of industrial upgrading, and guide the low-carbon development of the industry.
Question: IX. How is the company's profit distribution planned in the later stage
Answer: In 2024, the company implemented two dividends in the third quarter and the year, increasing the frequency and proportion of profit distribution and gradually enhancing investor returns. At present, the company's cash reserves are relatively abundant, its business development is stable, and capital expenditures are gradually decreasing. The company will gradually enhance the return to investors.
