Yunnan Aluminium Co. Ltd. Reports Strong Ninth‑Quarter Performance Amid Growing Demand for Metal‑Air Battery Materials
Yunnan Aluminium Co. Ltd. (YLC), a leading aluminium mining and processing firm headquartered in Kunming, China, announced its earnings for the nine months ended 30 September 2025. The company posted a 12 % increase in sales and a 15 % rise in net income compared with the same period a year earlier, underscoring the resilience of its core aluminium business and the expanding downstream demand for aluminium‑based components.
Financial Highlights
| Metric | 9‑month 2025 | 9‑month 2024 | YoY Change |
|---|---|---|---|
| Sales (CNY million) | 44,071.58 | 39,185.56 | +12 % |
| Net Income (CNY million) | 4,398.17 | 3,819.93 | +15 % |
| Basic EPS (CNY) | 1.268 | 1.101 | +15 % |
| Diluted EPS (CNY) | 1.268 | 1.101 | +15 % |
The upward trend is driven primarily by higher aluminium ingot and alumina production volumes, as well as a modest price lift in the domestic market. YLC’s 52‑week trading range for the current year remains comfortably above its 2024 low, reflecting a solid valuation of 16.18× its earnings and a market cap of 80.4 billion CNY.
Market Context: Metal‑Air Battery Boom
In late October, the Ministry of Industry and Information Technology’s Equipment Industrial Development Center highlighted metal‑air batteries—particularly aluminium‑air variants—as a key technology for next‑generation energy storage and power vehicles. The policy endorsement is expected to lift the profile of aluminium suppliers across China, creating new supply‑chain opportunities for YLC.
Metal‑air batteries harness common metals such as zinc, magnesium, and aluminium to produce electricity via an oxidation reaction with oxygen or seawater. The technology promises high energy density and a lightweight, recyclable profile, making it attractive for electric vehicles and stationary storage. As policy momentum builds, demand for high‑purity aluminium feedstock is likely to rise, positioning YLC to benefit from downstream adoption.
Strategic Positioning
YLC’s diversified product mix—ranging from raw aluminium ingots to processed hydropower aluminium products—allows it to capture multiple segments of the value chain. The company’s robust cash‑flow generation, reflected in a 69.77 billion CNY net cash inflow from operating activities during the quarter, provides a solid platform for investment in capacity expansion and R&D.
Moreover, YLC’s asset‑light model, with an asset‑to‑equity ratio of 23.21 % as of the quarter’s end, leaves room for strategic acquisitions or joint ventures in the emerging battery materials space. The company’s history of incremental profit growth (15.14 % YoY increase in diluted EPS) signals disciplined cost management and operational efficiency.
Outlook
Given the current trajectory of sales, earnings, and the macro‑environmental support for aluminium‑air battery development, YLC is well‑positioned to sustain its growth. The company’s market capitalization, coupled with a healthy price‑to‑earnings ratio, suggests that the stock remains fairly valued relative to its earnings potential and the expected upside from battery‑related demand.
Investors should watch for YLC’s capacity utilization rates and any strategic moves to deepen its footprint in battery‑material supply chains, as these factors will likely shape the company’s long‑term valuation trajectory.
