Revenue rose 38.3% year on year to RMB12.9 billion

Setting differentiated advantage through technologyreinforcement

Production capacity ramped up to boost profitability

Results Highlights:

• A double-digitincrease achieved in sales volume and revenue, steady growth in net profit
• Developing all-aluminiumformwork components, and initiating the leasing business of aluminium alloy formwork
• Client-oriented strategy for the support of newenergy vehicles and fabricated products
• High-end productscontinue to contribute, including the delivery of a newly-built all-aluminiumsuperyacht by Silver Yachts
• An interimdividend of HK$0.1 per share declared, representing a dividend payout ratio ofapproximately 45.9%

FinancialHighlights:

HONG KONG, CHINA - Media OutReach - 26 August 2019 - China Zhongwang Holdings Limited ("China Zhongwang" orthe "Company", which together with its subsidiaries is referred to as the"Group", stock code: 01333), a leading developer and manufacturer of fabricatedaluminium products in the world, announced its unaudited results for the six monthsended 30 June 2019 ("the Period under Review"). During the Period under Review, the demand for high-qualityaluminium products increased, contributing to sharp increases in the sales of theGroup's industrial extruded aluminium products and aluminium flat-rolled products.Such, coupled with the encouraging sales performance of the aluminium alloyformwork, drove up the Group's overall sales volume by 63.7 % year on year to 532,275 tonnes. As a result, the Group's totalrevenue 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 amountedto 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, whichrepresents a dividend payout ratio of approximately 45.9 %.

Mr. Lu Changqing, Chairman and President of China Zhongwang , said, "On the back of the ongoingupgrading and transformation of China's manufacturing industry, breakthroughsare being made in widening the applications of aluminium alloy, which is dubbeda 'green metal', in various industries. The Group's outstanding capability in researchand development, specialisation in high-end products and consistent optimisationof its product mix have enabled it to progressively expand its businesses, providingone-stop light-weight solutions for such high-end applications as ecologicalconstruction, new energy vehicles, rail transport, shipbuilding and aviation.The Group always dedicates itself to the aluminium fabrication, therefore ithas long been in a leading position in the industry."

Aluminium Extrusion Business - Initiatingthe leasing business of aluminium alloy formwork with the aim of enhancing long-termprofitability

A luminium alloy formwork has been widely usedas an ecological building material in recent years. During the Period underReview, the aluminium alloy formwork continued to contribute to the Group's financialresults. With its expertise in design, techniques and technology, the Groupsuccessfully developed a comprehensive range of aluminium formwork system thatinclude aluminium supporting components and connectors, enriching its product mix.Meanwhile, the application of aluminium alloy formwork has been extended toinfrastructure construction, such as underground integrated pipe corridors,subway tunnels and airport tunnels, thus increased the penetration rate of aluminiumalloy formwork.

To ensure its sustainabledevelopment, and enhance its long-term profitability, the Group commenced the leasingbusiness of aluminium alloy formwork. This not only deepensthe Group's contact with the end market but may also widen its potential profitin the long run.

Aluminium Flat Rolling Business -- Pressing ahead with capacity ramp-upand effort to obtain certification for high-end products to align with internationalstandards

The Group has beenmaking progress at its aluminium flat rolling plant in Tianjin in response tothe demand for high-end aluminium products. The first production line has beenrunning smoothly and fully integrated with improved production efficiency, unlockingthe production capacity. During the Period under Review, sales volume at theGroup's aluminium flat rolling plant increased significantly. The clients ofthe flat rolling business are mainly from the industrial and transportationsector, the Group is also supplying in small amount of automotive body sheetsfor new energy vehicle manufacturers. Meanwhile, the Group has been working onproduct 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-packbattery. The second production line at the plant in Tianjin has commenced pilotproduction in small scale.

Further Fabrication Business -- Pursuing excellence in the business ofproducing value-added products and leading the industry in the development oflight-weight solution for the transportation sector

­­To capitalise on thegrowing trend towards a light-weight solution in the transportation sector, theGroup actively research on and develop various high value-added products thatcan be used in passenger cars, buses, urban logistics vehicles and rail transitvehicles. This can lead to steady growth in its further fabrication business. TheGroup's technologies for producing all-aluminium body and chassis of new energyvehicles have reached the international advanced level. Such technologies areexpected to be widely used in various fields, including high-speed trains, subwaycarriages and the new energy vehicles. As a major supplier of aluminium partsfor "Fuxing EMU" high-speed train bodies, the Group contributes to the upgradingof China's railway system by providing various types of further fabricated aluminiumproducts.  

Expandingbusiness globally in a prudent and successive approach

TheGroup stays committed to its strategy of "focusing primarily on the China marketand to a lesser extent on the overseas markets", and plans carefully for itsglobal expansion. The advantage in experience and technology of the Group'soverseas operations has been reflected in the results performance. Alunna, ahigh-end aluminium extrusion subsidiary based in Germany, continued tocontribute steadily to the Group's profit. Silver Yachts, an aluminium alloysuperyacht builder based in Australia, delivered a newly-built luxurysuperyacht. In China, the Group has completed setup its shipyard in Jiangmen tomanufacture all-aluminium yachts and commercial vessels, production of thefirst all-aluminium yacht is in progress.

Looking ahead, Mr.Lu concluded, "The year 2019 marks the 10th anniversary of China Zhongwang'slisting on the Hong Kong Stock Exchange. Over the past decade, the Group has alwaysupheld its core values and became a reliable partner for our customers. Asaluminium find its potential in different applications, the Group will continueits effort in aluminium fabrication with its leading integrated light-weight solutions , awaiting to be inspired by moreaspirations and enlightenment. "

About China Zhongwang Holdings Limited

China Zhongwang is the second-largest developer and manufacturer of industrialextruded aluminium products in the world and the largest in Asia. The Groupprovides 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., ahigh-end aluminium extrusion manufacturer, and Silver Yachts Ltd., anall-aluminium superyacht builder, tapping into the finished-productmanufacturing 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 society so that people can live a qualitylife with low energy consumption.

Forfurther information on the Group, please visit its website at en.zhongwang.com.