China Zhongwang Announces 2018 Annual Results

March 29, 2019 - 06:45
China Zhongwang Announces 2018 Annual Results

Both Revenueand Net Profit Hit Record High

Increase toRMB25.6 Billion and RMB4.5 Billion Respectively

Forging DifferentiatedAdvantages through Enhanced Integrated Solutions



  • Both revenue andnet profit hit a record high in light of theceaseless product mix optimisation and enhanced addedvalue.
  • The contribution of high-end products used in ecologicalconstruction, all-aluminium vehicles and railway vehicles increased.
  • Client-oriented service model furtherstrengthenedwith well-developed integrated light-weight solutions.
  • Recommendeda final dividend of HKD0.17 per share. The dividend per share for the yeartotalled HKD0.27,equivalent toa dividend payoutratio of approximately 39.2%.


Financial Highlights:

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For the 12 months ended 31 December

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Net profit




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 pershare for the year totalled HKD0.27, equivalent to a dividend payout ratio ofapproximately 39.2% on a full-year basis.

Mr. Lu Changqing, Chairman andPresident of China Zhongwang , said, "China's economy has shifted to a high-quality development stage withstable growth, fostering sustainable development of variousindustries, thereby bringing forth exciting opportunitiesfor the eco-friendly material aluminium alloy. Riding on our strong researchand development strengths, the Group has strived to achieve differentiated advantages in respect of its product mix, businessfootprint and service model, providing integrated light-weight solutions to high-endsectors 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 EcologicalConstruction Solution with Unremitting Product Upgrade

Being a newecological construction material, aluminium alloy formwork has become a keyproduct of the Group in recent years. The product has obtained 18 patents with a nationwide clientele since itslaunch. During theYear under Review, the aluminium alloy formwork continued to be thegrowth engine of the Group's overall performance. In addition to continuouslyimproving product quality and environmental performance, the Group hasdeveloped a 3D modelling technology to shorten the design and production leadtime. The Group was honoured as "The Most InfluentialSupplier in the National Aluminium Alloy Formwork Industry 2018", an industry recognitionon the Group's leading position. Never settle for less, the Group has beendeveloping the all-aluminium formwork components and scaffoldings, leading theinnovative application of the product.


Further Fabrication Business -- Capitalise on Light-weight Development ofTransportation with One-stop Integrated Services

The Group achieved steadygrowth in further fabrication business as it focused on the high value-addedproducts including large-sized parts for rail vehicles, all-aluminium bodyframes and parts for passenger vehicles. Leveraging the capability of offering one-stop solutions, theGroup 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 forthe high-speed train"Fuxing EMU" and an exclusive supplier of large-sized further fabricated aluminiumparts for the commercial maglev 2.0 trains, the Group has unceasingly contributed to the upgrade of China's rail transportation. In view ofthe change in client mix, the Group has been strategically expanding its production bases nationwide toprovide all-round services spanning R&D, production andafter-sales services to the customers. In particular, the Wuhu plant designatedfor the new energy vehicles has gradually commenced production during the Year under Review.


Flat Rolling Business -- Push Forward High-End Production Qualifications toOptimise Business Layout

In response to the increasinglydiverse market demands, the Group has been actively pushing forward thealuminium flat rolling project in Tianjin. The first production line has beencontributing stable revenue to the Group with improved efficiency. The projecthas obtained a series of authoritative production qualifications covering a widerange of sectors, including aviation, shipbuilding, rail transportation and automotive.The aluminium automotive body sheet has passedaccreditations from a number of new energy vehicle OEMs in China, and pilotproduction is underway. Meanwhile, the second production line has beenconducting trial production for potential clients.


Further Extension of IndustryChain Through Prudent Global Expansion

Deeply rooted in the China market, the Group is also aiming at exploringmarket opportunities abroad. During the Year under Review, The Group became aTier-1 supplier to Jaguar Land Rover and will provide quality aluminium alloy productsolutions to its British plant, marking the Group's first foray into the supplychain 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 Yachtswill deliver a newly-built luxury superyacht in 2019. Silver Yachts has tappedinto China market by establishing a shipyard in Jiangmen, Guangdong Province inChina to manufacture all-aluminium yachts and commercial vessels.  


Looking ahead, Mr. Lu concluded, "Government Work Report2019 has laid out numerous positive measures to create a favourable businessenvironment for the private sector. As one of the leading private enterprisesin China, China Zhongwang will continue to foster the entrepreneurship, and promotethe application of the ecological aluminium alloy with relentless technologicalinnovation. 2019 marks the 10th anniversary of the listing of China Zhongwang on theHong Kong Stock Exchange. On behalf of the Board, I would like to extend ourappreciation to all the colleagues, our shareholders, customers and businesspartners for their support and trust allalong. China Zhongwang will remaincommitted to its mission and shoulder its responsibilities, and lead the upgrade and transformation of thealuminium fabrication industry, bringing integrated light-weight solutions tothe society. "

About China Zhongwang Holdings Limited

China Zhongwang is the second largest industrialaluminium extruded products developer and manufacturer in the world and thelargest in Asia. The Group provides a myriad of quality fabricated aluminiumproducts and offers integrated light-weight solutions for such downstreamsectors and fields as ecological construction, transportation, machinery andequipment and electric power engineering.


With integrated resources, the Group's corebusinesses, namely industrial aluminium extrusion, aluminium flat rolling andfurther fabrication have achieved synergistic development. In 2017, the Groupexpanded its business presence in the transportation sector by acquiringAluminiumwerk Unna AG., a leading aluminium extrusion manufacturer, and SilverYachts Ltd., an all-aluminium superyacht builder, tapping into the end-usemanufacturing in the marine sector. Having built excellent teams of researchand development, technology and design, the Group is able to provide one-stoplight-weight solutions covering independent design, manufacturing, fabricationand after-sales services. Looking ahead to the future, the Group will continueto promote the applications of high-end fabricated aluminium products, aimingto offer light-weight solutions to the society so that people can live aquality life with low energy consumption.


For further information on the Group, pleasevisit our official website at