China Zhongwang Announces Results for the First Quarter of 2014
Revenue Increases 11.5% to RMB3.57 Billion
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Sales Volume Surges 17.4% to 166,000 Tonnes
China Zhongwang Holdings Limited (“China Zhongwang” or “the Company”, together with its subsidiaries “the Group”, stock code: 01333), the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China, today announced unaudited consolidated results for the quarter ended 31 March 2014 (the “review period”). The Group reported quarterly revenue of approximately RMB3.57 billion, representing an increase of 11.5% year-on-year. The gross profit margin was 26.8%, and the gross profit was RMB956 million. The net profit for the quarter was approximately RMB500 million, slightly higher than that for the same period of last year.
Lu Changqing, executive director and vice president of China Zhongwang, said: “The Company achieved steady growth in sales volume and revenue in the first quarter of 2014. Thanks to the completion of the Group’s production capacity expansion and upgrade plan by the end of 2013. The expanded and optimized capacity has provided safeguard for the Group to increase its sales and better satisfy its customers’ orders in a speedier manner. We are fully confident of fulfilling this year’s sales target. Furthermore, the Group has been committing its resources since last year to the research and development of high value-added deep-processed products. Product prototypes such as all-aluminium subway train bodies, semi-trailers and special vehicles have attracted the attention of potential customers. We are convinced that our deep-processing business will undoubtedly become one of the important sources of profit for the Group.”
During the review period, the Group continued to expand its customer base in China and overseas markets, boosting overall sales volume of aluminium extrusion products to grow 17.4% year-on-year to approximately 166,000 tonnes. Sales from the China market for the first quarter of 2014 amounted to approximately RMB3.07 billion, accounting for 86.0% of the Group’s total revenue (2013Q1: approximately RMB2.84 billion and 88.5%). As the deep-processing centre expanded its operational scale, sales volume of deep-processed products surged 33.0% year-on-year to approximately 15,000 tonnes. Revenue from overseas markets climbed 36.4% to approximately RMB500 million, representing 14.0% of the Group’s revenue.
Mr. Lu concluded: “In 2014, we will enhance our corporate value in full strength by, among others, extending the industry chain, exploring the market, enhancing production efficiency and intensifying its research and development efforts. Against the backdrop of ever-growing demand for high-end industrial aluminium extrusion in China, the Group will fully exploit its market potentials by strengthening deep-processed product business, an export driver. Coupled with making strategic inroads in aluminium flat-rolled products, a segment that offers synergies with industrial aluminium extrusion business, the three core businesses will establish the sustainable growth model for the Group and generate outstanding performance for our shareholders.”