Steady Profit Growth with Increasing Capacity Utilisation

 

Results Highlights:

(RMB million)	For the three months ended 31 March		Change YoY
	2019	2018
Sales volume (tonnes)	262,025	130,385	+101.0%
Revenue	6,195	3,558	+74.1%
Gross profit	1,765	1,088	+62.3%
Net profit	618	535	+15.4%

HONG KONG,CHINA - Media OutReach -26 April 2019 - ChinaZhongwang Holdings Limited ("China Zhongwang" or the "Company", togetherwith its subsidiaries the "Group", stock code: 01333), a world-leadingfabricated aluminium products developer and manufacturer, announced its unauditedresults for the three months ended 31 March 2019 ("the Period under Review"). Duringthe Period under Review, the sales performance of aluminium alloy formwork andfurther fabricated products for transportation segment remained robust, which,coupled with the growing capacity utilisation of flat rolling and industrialaluminium extrusion, drove the Group's total sales volume to increase by 101.0%year-on-year to 262,025 tonnes. The Group's total revenue rose by 74.1% year-on-yearto RMB6.2 billion. Overall gross profit grew by 62.3% year-on-yearto RMB1.8 billion. Net profit up by 15.4% year-on-yearto RMB618 million.

Mr. Lu Changqing, Chairman and President of China Zhongwang, said, "Riding on the upgradesof aluminium alloy applications, China Zhongwang has been strategically investingin R&D and optimising the product portfolio in response to the changing clientelemix and market demand. In light of the production capacity utilisation ramp-up,flat-rolled products, industrial aluminium extruded products, aluminium alloyformwork, further fabricated parts of new energy vehicles and large-sized partsfor rail vehicles achieved outstanding results, resulting in stable growth ofthe Group's overall performance."

Leading Position inAluminium Alloy Formwork Industry

As a growth engine of the Group's overallperformance, aluminium alloy formwork, the ecological construction material continuedto grow during the Period under Review. Leveraging its exceptional innovationcapability, the Group has been developing the all-aluminium formwork componentsand scaffoldings to enrich the product portfolio. Meanwhile, the Group hasexpanded the application of aluminium alloy formwork to public infrastructure projectssuch as underground pipe, subway tunnel and airport tunnel. Given therelatively low market penetration of aluminium alloy formwork in China, as wellas the favourable policies on ecological construction, aluminium alloy formworksees substantial market potential.

Steady Progress on Aluminium Flat Rolling Business  

During the Period under Review, theproduction efficiency of the aluminium flat rolling project in Tianjin graduallyimproved, contributing to a notable growth in the sales volume and revenue offlat rolling business. The aluminiumautomotive body sheet has passed accreditations from several new energy vehicleOEMs in China, and pilot production is underway. Meanwhile, the secondproduction line has been conducting trial production for potential clients,expecting to commence production within this year.

 

State-level Recognitionin Innovation Capability

Lately, China Academy of Machinery Science and Technology Group hasestablished the "National Innovation Centre for Light-weight Material, Forming Techniquesand Equipment" jointly with research institutes and leading enterprises fromvarious industries. As a leader of thealuminium fabrication industry, the Group plays its role in this nationalinnovation centre, reaffirming the Group's leading position.

Looking ahead, Mr. Luconcluded, "2019 marks the 10th anniversary of the listing of China Zhongwangon the Hong Kong Stock Exchange. Over the past decade, the Group has continuedto optimise its product mix and service model, as well as extend its businessfootprints strategically, transforming into an integrated light-weight solutionsprovider. In the meantime, the Group has been sharing its achievements withshareholders by stable dividend pay-out. Looking into the future, we will graspthe opportunities arising from China's industrial upgrade and stay committed toour core businesses, contributing to the high-quality development of thealuminium fabrication industry."

About China Zhongwang Holdings Limited

China Zhongwang is the second largest industrial aluminium extrudedproducts developer and manufacturer in the world and the largest in Asia. TheGroup provides a myriad of quality fabricated aluminium products and offersintegrated light-weight solutions for such downstream sectors and fields asecological construction, transportation, machinery and equipment and electricpower engineering.

With integrated resources, the Group's three core businesses, namelyindustrial aluminium extrusion, aluminium flat rolling and further fabricationhave achieved synergistic development. In 2017, the Group expanded its businesspresence in the transportation sector by acquiring Aluminiumwerk Unna AG., a high-endaluminium extrusion manufacturer, and Silver Yachts Ltd., an all-aluminiumsuperyacht builder, tapping into the end-use manufacturing in the marinesector. Having built excellent teams of research and development, technologyand design, the Group is able to provide one-stop light-weight solutionscovering independent design, manufacturing, fabrication and after-salesservices. Looking ahead to the future, the Group will continue to promote theapplications of high-end fabricated aluminium products, aiming to offerlight-weight solutions to the society so that people can live a quality lifewith low energy consumption.

Forfurther information on the Group, please visit our official website at www.zhongwang.com.