China's biggest aluminum smelter Chalco (601600.SH; 2600.HK; ACH.NYSE) earned 1.167 billion yuan of net profit attributed to its shareholders in the first quarter of 2008 with an EPS of 0.0863 yuan, according to Chalco's Q1 report.

   The report unveiled that Chalco had taken over the primary aluminum producer Baotou Aluminum from its parent Chinalco via share swap to make it a wholly owned subsidiary by the end of 2007.

   Besides, it is stated that the buy-out plan to Liancheng Aluminum and related aluminum processing assets quoted for sale by the parent on Beijing Property Exchange had been approved by the board. It will join the bid as soon as the plan is passed at the shareholders' meeting.

   Chalco warned in the report that it is likely to see a negative or an abrupt change of accumulated net profit for the first half year of 2008.

   Chalco incurred a 14 percent drop in net profit in 2007 due to electrolytic aluminum price falls and price hikes of bauxite.

   Xiao Yaqing, CEO of Chalco, forecasted earlier that the price of electrolytic aluminum would rebound and that of alumina would hover at high level in 2008.

   Chalco A-share Wednesday rose 6.1 percent along with a market bounce of 4.15 percent, ending at 20.52 yuan, and H-share closed up 2.5 percent to 13.08 HK dollars.