(Yicai Global) Aug. 18 -- Aluminum Corporation of China Ltd. [SHA:601600, HKG:2600, NYSE: ACH], the world's second-largest alumina maker better known as Chalco, saw record first-half income and profit since the global financial crisis in 2008, according to the semi-annual report it published yesterday.

The firm brought CNY91.3 billion (USD19.5 billion) in first-half operating income, up 83 percent from the same period last year, while total profit grew three-fold to CNY1.59 billion (USD238 million) and net profits attributable to the parent company shot up 10-fold to CNY750 million.

The market foresaw the growth in Chalco's earning, but the record highs far exceeded investor expectations. The report attributes the strong income growth to a pickup in sales and price rises, and the steep increase in profits to a spike in gross margins from core product price rises. Improved cost control and management also played a big part in driving profit growth.

During the period, the company succeeded in reducing energy and power consumption in alumina and electrolytic aluminum production, its parent company, Aluminum Corporation of China Chalco, said at the semi-annual working conference. It made significant progress in the development of an energy-saving technique for aluminum electrolysis, and successfully commercialized and applied flue gas desulfurization technology for large boiler transformations which led to a noticeable decline in overall production costs.

The listed unit has started smart manufacturing initiatives aimed at creating a new-generation intelligent production system at its electrolytic aluminum subsidiaries, China Securities Journal reported. It also introduced intelligent manufacturing techniques to mining and alumina production operations, which will likely transform existing aluminum production methods on a global scale, the report added.

The impressive earnings growth has seen Chalco regain popularity on the capital market. Its share price climbed from a low of CNY4.04 (USD0.60) in May to close at CNY7.07 on Aug. 17.

Chalco has also signed long-term financing agreements with the Bank of Communications Ltd. [SHA:601328], China Life Investment Holding Co. and China Pacific Insurance Co. [SHA:601601] to raise a total of CNY30 billion after setting up a joint industry fund. The financing vehicle will lay the groundwork for Chalco to push ahead with its business transformation initiatives.

There have been several changes to the company's major shareholders. China Securities Finance Corp. raised its holdings from 406 million shares in the first quarter to 469 million; the National Social Security Fund's '102 portfolio' became the eighth largest shareholder after acquiring 65.89 million shares and China Life Insurance Co. [SHA:601628] became the 10th largest after one of its products bought 49.9 million shares.