Revenue rose 38.3% year on year to RMB12.9 billion
Setting differentiated advantage through technology
Production capacity ramped up to boost profitability
increase achieved in sales volume and revenue, steady growth in net profit
formwork components, and initiating the leasing business of aluminium alloy formwork
Client-oriented strategy for the support of new
energy vehicles and fabricated products
continue to contribute, including the delivery of a newly-built all-aluminium
superyacht by Silver Yachts
dividend of HK$0.1 per share declared, representing a dividend payout ratio of
For the six months ended 30 June
Sales volume (tonnes)
Interim dividend per share (HK$)
HONG KONG, CHINA - Media OutReach - 26 August 2019 - China Zhongwang Holdings Limited ("China Zhongwang" or
the "Company", which together with its subsidiaries is referred to as the
"Group", stock code: 01333), a leading developer and manufacturer of fabricated
aluminium products in the world, announced its unaudited results for the six months
ended 30 June 2019 ("the Period under Review"). During the Period under Review, the demand for high-quality
aluminium products increased, contributing to sharp increases in the sales of the
Group's industrial extruded aluminium products and aluminium flat-rolled products.
Such, coupled with the encouraging sales performance of the aluminium alloy
formwork, drove up the Group's overall sales volume by 63.7 % year on year to 532,275 tonnes. As a result, the Group's total
revenue rose by 38.3 % year on year to RMB 12.90 billion. Gross profit grew by 32 % year on year to RMB 3.91 billion. Gross margin amounted
to 30.3 %.
Net profit increased by 15.7 % year on year to RMB 1.47 billion.
The Board has declared an interim dividend of HK$ 0.1
per share, which
represents a dividend payout ratio of approximately 45.9 %.
Lu Changqing, Chairman and President of China Zhongwang
, said, "On the back of the ongoing
upgrading and transformation of China's manufacturing industry, breakthroughs
are being made in widening the applications of aluminium alloy, which is dubbed
a 'green metal', in various industries. The Group's outstanding capability in research
and development, specialisation in high-end products and consistent optimisation
of its product mix have enabled it to progressively expand its businesses, providing
one-stop light-weight solutions for such high-end applications as ecological
construction, new energy vehicles, rail transport, shipbuilding and aviation.
The Group always dedicates itself to the aluminium fabrication, therefore it
has long been in a leading position in the industry."
Aluminium Extrusion Business -
the leasing business of aluminium alloy formwork with the aim of enhancing long-term
A luminium alloy formwork has been widely used
as an ecological building material in recent years. During the Period under
Review, the aluminium alloy formwork continued to contribute to the Group's financial
results. With its expertise in design, techniques and technology, the Group
successfully developed a comprehensive range of aluminium formwork system that
include aluminium supporting components and connectors, enriching its product mix.
Meanwhile, the application of aluminium alloy formwork has been extended to
infrastructure construction, such as underground integrated pipe corridors,
subway tunnels and airport tunnels, thus increased the penetration rate of aluminium
To ensure its sustainable
development, and enhance its long-term profitability, the Group commenced the leasing
business of aluminium alloy formwork. This not only deepens
the Group's contact with the end market but may also widen its potential profit
in the long run.
Aluminium Flat Rolling Business -- Pressing ahead with capacity ramp-up
and effort to obtain certification for high-end products to align with international
The Group has been
making progress at its aluminium flat rolling plant in Tianjin in response to
the demand for high-end aluminium products. The first production line has been
running smoothly and fully integrated with improved production efficiency, unlocking
the production capacity. During the Period under Review, sales volume at the
Group's aluminium flat rolling plant increased significantly. The clients of
the flat rolling business are mainly from the industrial and transportation
sector, the Group is also supplying in small amount of automotive body sheets
for new energy vehicle manufacturers. Meanwhile, the Group has been working on
product accreditation procedures with some European brands and Japanese brands.
It has also developed a wide range of aluminium products for packaging,
including aluminium alloy sheets for can lids, laptop casings and soft-pack
battery. The second production line at the plant in Tianjin has commenced pilot
production in small scale.
Further Fabrication Business -- Pursuing excellence in the business of
producing value-added products and leading the industry in the development of
light-weight solution for the transportation sector
To capitalise on the
growing trend towards a light-weight solution in the transportation sector, the
Group actively research on and develop various high value-added products that
can be used in passenger cars, buses, urban logistics vehicles and rail transit
vehicles. This can lead to steady growth in its further fabrication business. The
Group's technologies for producing all-aluminium body and chassis of new energy
vehicles have reached the international advanced level. Such technologies are
expected to be widely used in various fields, including high-speed trains, subway
carriages and the new energy vehicles. As a major supplier of aluminium parts
for "Fuxing EMU" high-speed train bodies, the Group contributes to the upgrading
of China's railway system by providing various types of further fabricated aluminium
business globally in a prudent and successive approach
Group stays committed to its strategy of "focusing primarily on the China market
and to a lesser extent on the overseas markets", and plans carefully for its
global expansion. The advantage in experience and technology of the Group's
overseas operations has been reflected in the results performance. Alunna, a
high-end aluminium extrusion subsidiary based in Germany, continued to
contribute steadily to the Group's profit. Silver Yachts, an aluminium alloy
superyacht builder based in Australia, delivered a newly-built luxury
superyacht. In China, the Group has completed setup its shipyard in Jiangmen to
manufacture all-aluminium yachts and commercial vessels, production of the
first all-aluminium yacht is in progress.
Looking ahead, Mr.
Lu concluded, "The year 2019 marks the 10th anniversary of China Zhongwang's
listing on the Hong Kong Stock Exchange. Over the past decade, the Group has always
upheld its core values and became a reliable partner for our customers. As
aluminium find its potential in different applications, the Group will continue
its effort in aluminium fabrication with its leading integrated light-weight solutions , awaiting to be inspired by more
aspirations and enlightenment. "
About China Zhongwang Holdings Limited
China Zhongwang is the second-largest developer and manufacturer of industrial
extruded aluminium products 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
With integrated resources, the Group's three 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
high-end aluminium extrusion manufacturer, and Silver Yachts Ltd., an
all-aluminium superyacht builder, tapping into the finished-product
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 society so that people can live a quality
life with low energy consumption.
further information on the Group, please visit its website at en.zhongwang.com.