Announcement of China Aluminum Corporation Limited on the provision for impairment of assets

Stock code: 601600 Stock abbreviation: China Aluminum Announcement number: Pro 2021-036

The Board of Directors and all Directors of the Company warrant that this announcement is free from any misrepresentations, misleading statements or material omissions and accept sole and several liability for the truthfulness, accuracy and completeness of its contents.

The 23rd meeting of the 7th Board of Directors of China Aluminum Corporation Limited (hereinafter referred to as the "Company") deliberated and passed the "Proposal on the Company's Proposed Provision for Asset Impairment", which is specified as follows:

First, the basic situation of the company's provision for asset impairment

In accordance with the requirements of The Chinese Accounting Standards for Business Enterprises, IFRS and the Company's internal controls, the Company has identified and tested the indications of impairment of various assets as of the end of September 2021 in order to objectively and fairly reflect the Company's financial position and operating results. Based on the identification and testing results, the Company intends to record impairment of long-term assets of approximately RMB375 million in the third quarter of 2021 (cumulative provision of approximately RMB375 million for the first to third quarters of 2021) and approximately RMB441 million (net) of receivables credit impairment (approximately RMB919 million for the first to third quarters of 2021). The aforementioned provision for asset impairment (net) will reduce the net profit attributable to shareholders of the listed company in the third quarter of 2021 by approximately RMB816 million and the net profit attributable to shareholders of the listed company in the consolidated financial statements for the first to third quarters of 2021 by approximately RMB1.294 billion (the foregoing data is unaudited).

Second, the impairment of major assets

(1) Impairment provision of receivables

In accordance with the provisions of Accounting Standard for Business Enterprises No. 22 Recognition and Measurement of Financial Instruments and IFRS 9 Financial Instruments, the Company's provision for receivables arising from day-to-day business activities is measured against expected credit losses. Among them: the receivables of the customer's excellent credit rating and collateral are assessed on a single basis for expected credit losses; the receivables from other sales of goods and services are assessed on the basis of credit risk characteristics and age combinations of accounts receivable. Since 2021, some of the company's receivables have been affected by the judicial enforcement of collateral and the bankruptcy liquidation of the debtor. After conducting an impairment test, the main impairment items are as follows:

1. Claims against Shanxi Jiexiu Xinyugou Coal Industry Co., Ltd

Since 2021, the debt-collateral assets of Shanxi Jiexiu Xinyugou Coal Industry Co., Ltd. have been affected by the Shanxi Provincial Government's policy on the adjustment of coal mining processes and the assessment results of the Beijing court on the proposed enforcement of the mortgaged assets, and the net realizable value is expected to be further reduced. Based on comprehensive estimates, the Company intends to record impairment of approximately RMB380 million in the third quarter of 2021 (total impairment amount of approximately RMB722 million in the first to third quarters of 2021) and a decrease of approximately RMB380 million (a decrease of approximately RMB722 million in the first to third quarters of 2021) affecting the net profit attributable to shareholders of the listed company in the third quarter of 2021.

2. Claims on Guizhou Chinalco Hengtaihe Mining Co., Ltd

According to the bankruptcy liquidation results of Guizhou Chinalco Hengtaihe Mining Co., Ltd. in the first half of 2021, due to the inability to achieve the settlement of ordinary claims due to the failure to achieve the liquidation of ordinary claims due to the results of the auction of bankruptcy assets, the company made a full impairment charge on the net value of this debt in the first half of 2021, affecting the net profit attributable to the shareholders of the listed company in the first three quarters of 2021 by about RMB0.81 billion.

(2) Provision for impairment of long-term assets

In accordance with the provisions of Accounting Standard for Business Enterprises No. 8 Asset Impairment and IFRS 36 Asset Impairment, the Company evaluates long-term assets with signs of impairment and makes an impairment provision based on the difference between the recoverable amount and the carrying amount. The main impairment items are as follows:

Since 2021, the Chongqing branch of the company has been committed to mine resumption and asset revitalization after the termination of the mine cooperation agreement with the lessee, but due to the supervision of local environmental protection policies, the difficulty of resuming production and the high cost of mining, it is expected that the possibility of mine resumption is small, and there are signs of asset impairment. After professional demonstration and impairment test results, it is proposed to make an impairment charge of the mining assets of the Chongqing branch of the Company in the third quarter of 2021, amounting to approximately RMB375 million, affecting the net profit attributable to the shareholders of the listed company in the third quarter of 2021 by approximately RMB375 million (a decrease of approximately RMB375 million in the first to third quarters of 2021).

3. Relevant approval procedures

The asset impairment has been deliberated and approved by the 23rd meeting of the 7th Board of Directors and the 11th meeting of the 7th Supervisory Board held by the Company on October 26, 2021. The independent directors of the Company also expressed an independent opinion on the provision for asset impairment.

The Board of Directors of the Company believes that the Company's provision for impairment of assets is in line with the relevant provisions of the Accounting Standards for Business Enterprises and international financial reporting standards, and is in line with the actual situation of the Company's assets. After the impairment is taken, the company's financial statements can more fairly reflect the company's asset status, which can make the company's accounting information more reliable and reasonable.

The Board of Supervisors of the Company believes that the Company's provision for impairment of assets this time complies with the relevant provisions of accounting standards for business enterprises and international financial reporting standards, conforms to the actual situation of the Company's assets, and the approval procedure for the provision for impairment is legal and compliant, and has sufficient basis. After the impairment provision can more truly reflect the company's asset status, it is agreed to make an asset impairment provision this time.

The independent directors of the Company believe that the Company's provision for asset impairment is in line with the relevant provisions of the Accounting Standards for Business Enterprises and IFRS, and is in line with the actual situation of the Company's assets. The approval process for the provision for impairment is legal and compliant. After the impairment is taken, the company's financial statements can more fairly reflect the company's asset status, help to provide investors with more true and reliable accounting information, and there is no harm to the interests of the company and shareholders, especially small and medium-sized shareholders.

This is hereby announced.

China Aluminum Corporation Limited

board of directors

October 26, 2021

Documents for reference: 1. Resolution of the 23rd meeting of the 7th Board of Directors of China Aluminum Co., Ltd

2. Resolution of the eleventh meeting of the 7th Supervisory Board of China Aluminum Corporation Limited

3. Independent opinions of the independent directors of China Aluminum Co., Ltd. on relevant matters

Stock code: 601600 Stock abbreviation: China Aluminum Announcement number: Pro 2021-037

Announcement on the Change of Representative for Securities Affairs

The Board of Directors and all Directors of the Company warrant that the contents of this announcement are free from any misrepresentations, misleading statements or material omissions and accept sole and several liability for the truthfulness, accuracy and completeness of the contents.

Ms. Zhao Hongmei, the former representative of securities affairs of China Aluminum Co., Ltd. (hereinafter referred to as the "Company"), submitted a written resignation to the Board of Directors due to work transfer, and requested to resign as the representative of the Company's securities affairs.

On October 26, 2021, the Company held the 23rd meeting of the Seventh Board of Directors, deliberated and passed the "Proposal on the Proposed Change of Securities Representative of the Company", approved the resignation of Ms. Zhao Hongmei as the representative of the Company's securities affairs, and hired Mr. Gao Lidong as the representative of the Company's securities affairs (see the attachment for Mr. Gao Lidong's resume).

The Board of Directors of the Company expresses its sincere gratitude to Ms. Zhao Hongmei for her contribution to the Company during her tenure as a representative for securities affairs.

After review, Mr. Gao Lidong has the qualifications and conditions to serve as the representative of the company's securities affairs, and has obtained the qualification certificate of the secretary of the board of directors, which complies with the provisions of the Company Law of the People's Republic of China, the Rules for the Listing of Stocks on the Shanghai Stock Exchange, the Measures for the Administration of the Secretary of the Board of Directors of Listed Companies on the Shanghai Stock Exchange and other laws and regulations. Mr. Gao Lidong does not hold shares in the Company, has no relationship with the controlling shareholder, the actual controller of the Company and other shareholders holding more than 5% of the Company's shares, and has not been punished or punished by the China Securities Regulatory Commission or other relevant departments.

Mr. Gao Lidong's contact information is as follows:

Contact address: No. 62, Xizhimen North Street, Haidian District, Beijing, China

Contact number: 010-82298322

Fax number: 010-82298158

Email: [email protected]

Board of Directors of China Aluminum Corporation Limited

Documents for reference: Resolution of the 23rd meeting of the 7th Board of Directors of China Aluminum Co., Ltd

annex:

Mr. Gao Lidong's curriculum vitae

Mr. Gao Lidong, aged 52, is the General Manager of the Financial Assets Department (Office of the Board of Directors) of China Aluminum Co., Ltd. Mr. Gao graduated from North China University of Technology with a bachelor's degree in accounting and later obtained a master's degree in business administration from Peking University and is a senior accountant. Mr. Gao has rich experience in financial management and marketing, and has successively served as a teacher in the Accounting Teaching and Research Department of North China University of Technology, a cadre of the Finance Department of China Nonferrous Metals Industry Corporation, a cadre of CNMC Asset Management Company of the State Nonferrous Metals Industry Bureau, a deputy director of the Financial Management Department of the Finance Department of China Copper, Lead and Zinc Group Corporation, an assistant researcher of the First Office of the Supervision Office of the Enterprise Supervision Bureau of the State Economic and Trade Commission, and an assistant researcher of the Office of the Inspector of major projects of the National Development and Reform Commission. Director of the General Department of the Finance Department (Asset Management Division) of Chinalco Corporation, Financial Director and Secretary of the Board of Directors of Yunnan Copper Co., Ltd., General Manager of the Finance Department of China Copper Co., Ltd., Financial Director of Chinalco Mineral Resources Co., Ltd., Chief Financial Director and Director of Chinalco Mining International Financial Director, Director, Chief Representative of Beijing Representative Office, Vice President and Director of Chinalco Peru Mining Company, Deputy General Manager of Chinalco Southeast Copper Co., Ltd., Deputy General Manager of China Copper Southeast Copper Co., Ltd.

Stock code: 601600 Stock abbreviation: China Aluminum Announcement number: Pro 2021-031

Announcement of the resolution of the eleventh meeting of the 7th Board of Supervisors

The Supervisory Board and all the Supervisors of the Company warrant that the contents of this announcement are free from any false records, misleading statements or material omissions, and assume individual and joint liability for the truthfulness, accuracy and completeness of the contents.

On October 25, 2021, China Aluminum Corporation Limited (hereinafter referred to as the "Company") held the 11th meeting of the 7th Supervisory Board. The meeting shall be 4 supervisors, 4 actual supervisors, and 4 valid voting. The meeting was presided over by Mr. Ye Guohua, Chairman of the Supervisory Board of the Company. The convocation, convocation and voting procedures of this meeting conform to the provisions of the Company Law of the People's Republic of China and other relevant laws and regulations and the Articles of Association of China Aluminum Corporation Limited. After the joint deliberation of the supervisors attending the meeting, the meeting passed the following three proposals and formed a resolution:

1. Deliberated and approved the company's third quarter report in 2021

In accordance with the disclosure requirements of the Quarterly Report of Listed Companies No. 101 annex to the Guidelines for the Self-Regulatory Supervision of Listed Companies on the Shanghai Stock Exchange No. 1 - Announcement, the Supervisory Board agreed to the Company's third quarter report in 2021 and issued the following audit opinions:

1. The preparation and review procedures of the company's third quarter report in 2021 comply with relevant laws and regulations, the Articles of Association of China Aluminum Corporation Limited and the provisions of the company's internal management system;

2. The content and format of the company's third quarter report in 2021 meet the disclosure requirements of the Shanghai Stock Exchange for quarterly reports, and the information contained can truly reflect the company's operating results and financial situation during the reporting period;

3. Prior to the issuance of this opinion, no violation of confidentiality was found by the personnel involved in the preparation and consideration of quarterly reports.

Voting result: 4 votes in favour, 0 against, 0 abstentions.

2. Deliberated and passed a proposal on the proposed change of the accounting policy of the parent company under the International Accounting Standards

After deliberation, the Supervisory Board agreed to change the accounting of the parent company's investment in the joint venture under the International Accounting Standards from the current cost method to the equity method, and issued the following audit opinion:

1. The change in the parent company's accounting policy is made within the scope of the provisions of IAS 27 - Separate Financial Statements, and the changed accounting policy can enable the parent company's financial statements under IAS to better reflect the financial position and operating results of the joint venture, and further reduce the accounting differences between the parent company in China and IAS;

2. This change in accounting policy will not have any impact on the financial data of the parent company and the financial data of the company's consolidated caliber under the Chinese accounting standards;

3. The approval procedure for this change in accounting policy complies with the relevant laws, regulations and the Articles of Association of China Aluminum Co., Ltd., and there is no harm to the interests of the company and shareholders.

3. Deliberated and passed the proposal on the company's proposed provision for asset impairment

After deliberation, the Supervisory Board approved the Company's long-term asset impairment for the third quarter of 2021 of approximately RMB375 million (cumulative provision of approximately RMB375 million in the first to third quarters of 2021) and the provision of credit impairment of receivables of approximately RMB441 million (cumulative provision of approximately RMB919 million in the first to third quarters of 2021), and issued the following audit opinions:

1. The company's provision for asset impairment this time complies with the relevant provisions of accounting standards for business enterprises and INTERNATIONAL FINANCIAL REPORTING STANDARDs;

2. The approval procedure of the company's asset impairment provision complies with the relevant laws and regulations and the relevant provisions of the Articles of Association of China Aluminum Corporation Limited;

3. After the company's asset impairment provision is made this time, it can more truly reflect the company's asset status and operating results.

Supervisory Board of China Aluminum Corporation Limited

Documents for reference: Resolution of the eleventh meeting of the 7th Supervisory Board of China Aluminum Corporation Limited