According to an article published in Hong Kong Economic Journal dated on 16 August, China Zhongwang achieved a 50% increase of net profit in the second quarter compared to the first quarter. Mr. Lu Changqing, Executive Director and Vice President of the Company, stated that although the Company’s overseas sales dropped due to the anti-dumping and countervailing duty investigations in the first half of the year, the situation will be improved in the second half of the year.

Mr. Lu mentioned that the Group’s gross profit margin (GPM) dropped as a result of the anti-dumping and countervailing duty investigations. However, he believes that that GPM already hit the bottom in the second quarter of the year. The confidence came from the plan that the Group will raise the proportion of high-end products, especially the 2nd, 4th, 5th and 7th series of aluminum alloy products.  These products are not included in the issue and can export to the US without subject to the tax. Zhongwang’s order volume for the second half showed a rebound of its sales. The Group has already received orders of around 180,000 tons in the first half year and the targeted order volume is around 400,000 tons for the year. Mr. Lu also revealed that the Group plans to complete in several phases the construction of a high precision aluminum flat rolled product project with total annual production capacity of 3 million tons. The production is expected to commence by 2014, and the annual investment will amount to RMB5 billion. He also said that the production of high-end aluminum flat rolled product in domestic market currently remains in a vacuum; the market mainly depends on import. Zhongwang is willing to fill in the niche market. Furthermore, given the ample market potential in aluminum extrusion products for automobiles, China Zhongwang is now working with General Motors to research on the production of high-end aluminum automobiles.