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China Zhongwang Wins's China Capital Market Responsible Enterprise of the Year Award"

Time:23 January 2017 Font size

The "China Capital Market Responsible Enterprise of the Year Award" was announced in the "2nd China Capital Market IRM Summit" hosted by Economic Observer. China Zhongwang Holdings Limited (“China Zhongwang"), the world's leading aluminium fabricated product developer and manufacturer, won the award.

The organizer said, "The selection of winners was based on 3 dimensions, including the healthiness and development of the companies, value creation for the shareholders and the determination to maintain market stability. Index like annual turnover and annual profit growth are the criteria for the selection of winners. "

The expert judges agreed that the award-winning listed companies, including China Zhongwang, occupies a pivotal position in the capital market of China. These winners are the important backbone to stabilize the Chinese economy as well as its capital market. Year 2016 was the key year for China's economic transformation and upgrades after 38 years of rapid growth, the China's economic development had entered the "New Normal" period. The important mission for Chinese enterprises is to focus on the development of entity manufacturing industry, through continuous upgrades in both technology and equipment, in order to improve the overall competitiveness.

China Zhongwang was successfully listed on the Main Board of Hong Kong Stock Exchange in 2009. It was the world's largest IPO in that year. The Group enhanced its overall capabilities by excellent product design and R&D capabilities, continuous optimization of product structure, upgrades in technology, improvement in production efficiency, production cost control, and increasing contribution from high value-added products constantly.

Relevant financial data indicates that China Zhongwang achieved sustained and healthy earnings in its rapid development. According to its 2016 3Q results, the Company’s adjusted net profit rose by 4.1% to RMB2.62 billion. Gross margin increased by 3.5 percentage points YoY to 38.3% as the revenue contribution from high-end products continued to increase.

The healthy development of listed companies is inseparable from the support of its shareholders. Therefore, in order to maximize shareholders’ interest, China Zhongwang paid dividends to shareholders in recent years. This safeguards the interests of the majority investors. Moreover, China Zhongwang links the interest of shareholders with the Company, management and staff, which maximizes the value of shareholders. China Zhongwang achieved steady revenue growth, revenue of the past three years (2013-2015) was RMB46.4 billion. The dividend paid to shareholders reached more than RMB2.6 billion.

China Zhongwang not only achieved steady growth in financial performance, it also had an important planning in the capital market. In March 2016, China Zhongwang announced a proposed spin-off of the Group's industrial aluminium extrusion business. The Group, through an indirectly wholly-owned subsidiary, entered an asset purchase agreement of RMB28.2 billion with CRED Holding Co. Limited. This will achieve a spin-off listing on the A-share market. At the same time, the listing entity in Hong Kong will focus on the other two core businesses with high potential of further development, namely deep processing and aluminum flat-rolling business. Therefore, China Zhongwang will develop in "Red Chips + A" dual-listing platform to achieve comprehensive development.

In August 2016, Zhongwang USA LLC, a subsidiary of China Zhongwang’s parent company - Zhongwang International Group Limited, announced that it has entered a definitive agreement to acquire Aleris Corporation ("Aleris"), a global aluminium rolled products producer. The aggregate value of Aleris amounts to approximately US$2.33 billion. Aleris is one of the leaders in aluminium application in aerospace and automotive sectors, and is the top-line supplier for Airbus, Boeing, Bombardier, Benz, Audi and BMW, etc. The completion of the transaction would mean the largest overseas acquisitions in the high value-added metal manufacturing field by Chinese enterprises.

Representative of China Zhongwang said, "Since the Company's listing in 2009, China Zhongwang got access to more financing channels and capital support. Moreover, the Company’ s measures, namely strict information disclosure, further enhance corporate transparency and strengthen corporate governance under the guidance of the Listing Rules; laid a solid foundation for the sustainable development of the Company. This will also provide the Company with a new financing platform, unlocking the intrinsic value‎ of China Zhongwang.”