and Net Profit Hit Record High
RMB25.6 Billion and RMB4.5 Billion Respectively
Advantages through Enhanced Integrated Solutions
Both revenue and
net profit hit a record high in light of the
ceaseless product mix optimisation and enhanced added
The contribution of high-end products used in ecological
construction, all-aluminium vehicles and railway vehicles increased.
- Client-oriented service model furtherstrengthenedwith well-developed integrated light-weight solutions.
a final dividend of HKD0.17 per share. The dividend per share for the year
totalled HKD0.27,equivalent toa dividend payout
ratio of approximately
For the 12 months ended 31 December
Sales volume (tonnes)
Dividend per share (HKD)
HONG KONG, CHINA - Media OutReach - 29 March 2019 -
China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", stock code: 01333), a world-leading fabricated aluminium products developer and manufacturer, announced its audited results for the year ended 31 December 2018 ("the Year under Review"). During the Year under Review, the sales of high-end products such as aluminium alloy formwork and large-sized parts for railway vehicles achieved satisfactory results, coupled with stable contribution from the flat rolling business, the total sales volume of the Group increased by 24.4% year-on-year to 917,176 tonnes. In light of the continuing product mix optimisation and enhanced added value, the Group's total revenue rose by 31.6% year-on-year to RMB25.6 billion. Overall gross profit up by 31.7% year-on-year to RMB8.4 billion. Gross margin was 32.7%. Net profit up by 15.5% year-on-year to RMB4.5 billion.
The Board has recommended a final dividend of HKD0.17 per share. Together with the interim dividend of HKD0.10 per share, the dividend per
share for the year totalled HKD0.27, equivalent to a dividend payout ratio of
approximately 39.2% on a full-year basis.
Lu Changqing, Chairman and
President of China Zhongwang
, said, "China's economy has shifted to a high-quality development stage with
stable growth, fostering sustainable development of various
industries, thereby bringing forth exciting opportunities
for the eco-friendly material aluminium alloy. Riding on our strong research
and development strengths, the Group has strived to achieve differentiated advantages in respect of its product mix, business
footprint and service model, providing integrated light-weight solutions to high-end
sectors such as ecological construction, new energy vehicles and rail transportation.
Hard work pays off, the Group achieved satisfactory results in 2018."
Aluminium Extrusion Business -- Leading Ecological
Construction Solution with Unremitting Product Upgrade
Being a new
ecological construction material, aluminium alloy formwork has become a key
product of the Group in recent years. The product has obtained 18 patents with a nationwide clientele since its
launch. During the
Year under Review, the aluminium alloy formwork continued to be the
growth engine of the Group's overall performance. In addition to continuously
improving product quality and environmental performance, the Group has
developed a 3D modelling technology to shorten the design and production lead
time. The Group was honoured as "The Most Influential
Supplier in the National Aluminium Alloy Formwork Industry 2018", an industry recognition
on the Group's leading position. Never settle for less, the Group has been
developing the all-aluminium formwork components and scaffoldings, leading the
innovative application of the product.
Further Fabrication Business -- Capitalise on Light-weight Development of
Transportation with One-stop Integrated Services
The Group achieved steady
growth in further fabrication business as it focused on the high value-added
products including large-sized parts for rail vehicles, all-aluminium body
frames and parts for passenger vehicles. Leveraging the capability of offering one-stop solutions, the
Group has provided light-weight solutions to a number of automakers such as CH-Auto Technology, Chery New Energy, and FAW Group. The Group was awarded as an "Outstanding Supplier 2018" by Chery Automobile. Being a key supplier of further fabricated aluminium products for
the high-speed train
"Fuxing EMU" and an exclusive supplier of large-sized further fabricated aluminium
parts for the commercial maglev 2.0 trains, the Group has unceasingly contributed to the upgrade of China's rail transportation. In view of
the change in client mix, the Group has been strategically expanding its production bases nationwide to
provide all-round services spanning R&D, production and
after-sales services to the customers. In particular, the Wuhu plant designated
for the new energy vehicles has gradually commenced production during the Year under Review.
Flat Rolling Business -- Push Forward High-End Production Qualifications to
Optimise Business Layout
In response to the increasingly
diverse market demands, the Group has been actively pushing forward the
aluminium flat rolling project in Tianjin. The first production line has been
contributing stable revenue to the Group with improved efficiency. The project
has obtained a series of authoritative production qualifications covering a wide
range of sectors, including aviation, shipbuilding, rail transportation and automotive.
The aluminium automotive body sheet has passed
accreditations from a number of new energy vehicle OEMs in China, and pilot
production is underway. Meanwhile, the second production line has been
conducting trial production for potential clients.
Extension of Industry
Chain Through Prudent Global Expansion
Deeply rooted in the China market, the Group is also aiming at exploring
market opportunities abroad. During the Year under Review, The Group became a
Tier-1 supplier to Jaguar Land Rover and will provide quality aluminium alloy product
solutions to its British plant, marking the Group's first foray into the supply
chain of overseas automakers. Alunna, the Group's high-end aluminium extrusion subsidiary in Germany, has enhanced production efficiency significantly. Notably,
Alunna passed the Airbus IPCA-Plus-Audit and achieved an excellent level "A"
rating. In addition, the Group's all-aluminium superyacht builder Silver Yachts
will deliver a newly-built luxury superyacht in 2019. Silver Yachts has tapped
into China market by establishing a shipyard in Jiangmen, Guangdong Province in
China to manufacture all-aluminium yachts and commercial vessels.
Looking ahead, Mr. Lu concluded, "Government Work Report
2019 has laid out numerous positive measures to create a favourable business
environment for the private sector. As one of the leading private enterprises
in China, China Zhongwang will continue to foster the entrepreneurship, and promote
the application of the ecological aluminium alloy with relentless technological
innovation. 2019 marks the 10th anniversary of the listing of China Zhongwang on the
Hong Kong Stock Exchange. On behalf of the Board, I would like to extend our
appreciation to all the colleagues, our shareholders, customers and business
partners for their support and trust all
along. China Zhongwang will remain
committed to its mission and shoulder its responsibilities, and lead the upgrade and transformation of the
aluminium fabrication industry, bringing integrated light-weight solutions to
the society. "
About China Zhongwang Holdings Limited
China Zhongwang is the second largest industrial
aluminium extruded products developer and manufacturer in the world and the
largest in Asia. The Group provides a myriad of quality fabricated aluminium
products and offers integrated light-weight solutions for such downstream
sectors and fields as ecological construction, transportation, machinery and
equipment and electric power engineering.
With integrated resources, the Group's core
businesses, namely industrial aluminium extrusion, aluminium flat rolling and
further fabrication have achieved synergistic development. In 2017, the Group
expanded its business presence in the transportation sector by acquiring
Aluminiumwerk Unna AG., a leading aluminium extrusion manufacturer, and Silver
Yachts Ltd., an all-aluminium superyacht builder, tapping into the end-use
manufacturing in the marine sector. Having built excellent teams of research
and development, technology and design, the Group is able to provide one-stop
light-weight solutions covering independent design, manufacturing, fabrication
and after-sales services. Looking ahead to the future, the Group will continue
to promote the applications of high-end fabricated aluminium products, aiming
to offer light-weight solutions to the society so that people can live a
quality life with low energy consumption.
For further information on the Group, please
visit our official website at www.zhongwang.com.