China Zhongwang Chairman Liu increases stake
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Casting a vote of confidence in Company’s future development
19 May 2011, Hong Kong - China Zhongwang Holdings Limited (“China Zhongwang” or the “Company”, together with its subsidiaries the “Group”; stock code: 01333) announced today that its Chairman and controlling shareholder Liu Zhongtian increased his stake in China Zhongwang during 17-19 May 2011. A total of 4,200,000 shares were purchased on the market via Zhongwang International Group Limited, a company wholly owned by Mr. Liu, at an average price of HK$3.37 per share, thereby increasing Mr. Liu’s shareholding in the Company from 73.99% to 74.07%.
“As the controlling shareholder of the Company, I cast my vote of confidence in the future development of China Zhongwang by raising my stake in it,” Mr. Liu said. “Despite the challenges brought forth by the US anti-dumping and countervailing duties policy which led to a decline in US export sales, we have gradually moved out of the trough on operational fronts as we stepped up our efforts in tapping opportunities in the China market. Our strong financial position with significant cash on hand puts us in an advantageous position and as such we have embarked on new expansion plans. We will continue to focus on high precision, large-section and high value-added industrial aluminium extrusion products while expanding our business to the manufacture of high-end, high value-added aluminium flat rolled products (“FRPs”). High value-added FRPs, mainly consisting of medium-to-high thickness plates, high-end foils and sheets, etc., are principally used in aviation and aerospace, vessels, railway transportation, automobiles, machinery equipment, as well as packaging and electronics sectors. Diversification to this flat rolled product business will not only enable the Group to take full advantage of its customer base and market resources in downstream application sectors,it will also create synergies with the existing businesses. We are confident that the implementation of these new projects will mark a new milestone in our development and will bring about greater returns to our shareholders and investors.”
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About China Zhongwang Holdings Limited
China Zhongwang is the third largest aluminium extrusion product developer and manufacturer in the world and the biggest in Asia and China, primarily focusing on, among others, the light-weight development of transportation, machinery equipment and electric power engineering sectors. Headquartered in Liaoning province, China, the Group is specialized in the provision of quality industrial aluminium extrusion products which meet stringent specifications and quality standards.
The Group owned 73 top aluminium extrusion production lines in the world as at 31 December 2010, of which the 125MN oil-driven dual action aluminium extrusion press is one of the largest and most advanced presses in China and even in the world. It has built the world leading aluminium tilt smelting and casting equipment in the industry, as well as the largest customized industrial aluminium extrusion product die design and manufacturing centre in Asia. The Group’s annual production capacity as at the end of 2010 was 640 kilotons.The close coordination among product development, smelting and casting, die and extrusion and the advanced technologies applied in those processes are the Group’s important source of competitiveness and outstanding feature.
The Group is principally engaged in the production of high precision, large-section and high value-added industrial aluminium extrusion products which are widely used in the transportation sector (including railway passenger and cargo carriages, metropolitan rails, automobiles, heavy trucks, vessels, aviation and aerospace) as well as machinery equipment and electric power engineering fields.
For enquiries, please contact:
China Zhongwang Holdings Limited
Harriet Lau Tel: +852 2905 3104 Email: harrietlau@zhongwang.com
Shirley Ho Tel: +852 2905 3119 Email: shirleyho@zhongwang.com
