Recently, winners of the 10th Liaoning Outstanding New Products Award have been officially announced. The “Aluminium Alloy Extrusions for Equipment Cylinder” project developed by China Zhongwang won the third prize.

Liaoning Outstanding New Products Award, the highest accolade given by the provincial government, was established in 1995 to encourage innovation among enterprises. Selected once every two years, the award-winning products are of high level of technology, considerable market sales and economic returns. They also have great impacts to the economic development of the region and industry. 

Aluminium Alloy Extrusion for Equipment Cylinder is a new product self-developed by China Zhongwang. It is a product with broad market prospects and can be widely used in electric power, petrochemical, machinery manufacturing, water supply and drainage, etc. This product, which is highly regarded by industry experts, adopts world-class technology that helps accelerate the localization of high-precision pneumatic valves and increase its international competitiveness in pneumatic valves manufacturing.

China Zhongwang has been committed to product research and development, with the aim of achieving product differentiation with more sophisticated technologies and increasing the potential for profitability in the longer term. During the first half of 2014, the Group continued to increase its input in research and development to improve the production processes and develop new products. Investment in research and development for the Period under Review amounted to approximately RMB240 million, representing 3.0% of its overall revenue. During the Period under Review, the Group obtained 11 patents, including 4 invention patents and 7 utility model patents. It also built a mutually beneficial development model with a number of large enterprises and leading academic institutions to conduct joint research and development on novel applications of aluminium alloy products in the transportation sector. New strategic partners solicited during the Period under Review included AVIC SAC Commercial Aircraft Company Limited, Shenyang Aerospace University and Dalian University of Technology. In partnership with a number of leading research and academic institutions allows the Group to acquire strong capabilities in the research and development of new materials; focus on the research and development of alloy composition; own a well-developed centre for die design and production, in order to provide the right products that meet customers’ requirements in respect of aluminium extrusion standards and precision.

Obtaining the Outstanding New Products Awards showcased the Group’s strength in research and development of more sophisticated technologies and high value-added products. It signifies China Zhongwang"s innovation in product research and development has reached new heights.