China Zhongwang 2017 Profit for the Year Increases by 33.1% to RMB3.87 Billion

Time:23 March 2018 Font size

Constantly Optimises Product Mix

Further Expands Product Applications Through International Acquisitions

Results Highlights:

• Total external sales volume reached 737,366 tonnes, among which the sales volume of aluminium alloy formwork amounted to 259,957 tonnes.

• Revenue up 16.6% year-on-year to RMB19.46 billion. Overall gross margin was 32.6%.

• Profit for the year up by 33.1% year-on-year to RMB3.87 billion.

• Completed two international acquisitions to expand high-end aluminium applications into aviation and marine sectors.

  • First production line of the flat rolling project has commenced commercial operation, with continued improvement in production efficiency and capacity.

Financial Highlights:

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(For the 12 months ended  31 December)





External sales volume (tonnes)








Gross profit








Profit for the Year




Dividend per share (HKD)




(Hong Kong, 23 March 2018) -China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", stock code: 01333), a world-leading fabricated aluminium product developer and manufacturer, announced its audited annual results for the year ended 31 December 2017 (“the Year under Review”). During the Year under Review, the Group's high value-added aluminium alloy formworks recorded remarkable sales, driving up the overall average selling price. External sales volume reached 737,366 tonnes, total revenue grew 16.6% to approximately RMB19.46 billion. Profit for the year rose considerably by 33.1% year-on-year to approximately RMB3.87 billion.

The Board recommended a final dividend of HKD0.15 per share. Together with the interim dividend of HKD0.10 per share, the dividend per share for the year totalled HKD0.25, equivalent to a dividend payout ratio of approximately 41.2% on a full-year basis.

Mr. Lu Changqing, Chairman and President of China Zhongwang, said, “In China, new applications of aluminium have been springing up, particularly in high-end sectors such as ecological construction, transportation, machinery and equipment. The Group has been well-prepared in advance in terms of R&D and production capacity, which consolidated its comprehensive strength in high-end aluminium fabrication, and resulted in satisfactory performance. Notably, the Group successively completed acquisitions of Aluminiumwerk Unna AG (“Alunna”) and Silver Yachts Ltd. ("SilverYachts"). The acquisitions will not only accelerate the Group’s expansion into high-end application sectors, but also will maximise our existing advantages that will propel long-term development.”

International Acquisitions Lead to Business Synergies and Broaden Product Applications 

The two international acquisitions the Group completed during the Year under Review marked the milestones of its expansion into overseas markets. The acquisition of Alunna, a manufacturer of high-end seamless aluminium tubes, will accelerate the Group’s development in high-end aluminium applications in aviation and automotive industries. Meanwhile, with the joining of SilverYachts, a builder of large-scale all-aluminium superyachts, the Group will directly enter downstream end-use manufacturing. The newly added businesses will create synergies with the Group's existing businesses, setting the stage for long-term sustainable development.

Aluminium Extrusion Business - 

Optimise Product Portfolio to Enhance Profitability

With excellent design and production capabilities, the Group provides its customers with one-stop light-weight solutions covering design, production, and after-sales services, thus boosting the share of high-end products. The Group further upgraded the alloys, product specification and surface treatment of its aluminium alloy formworks. As a result, the product delivered on consumer preference for exceptional performance, durability, and economic efficiency. In the meantime, the Group achieved progress in productivity optimisation. During the Year under Review, one of the two 225MN ultra-large extrusion presses commenced commercial operation, and the other one was under testing. Several of the 99 extrusion presses the Group ordered earlier have arrived for installation and trial run. The gradual launch of the new capacity will expand the Group’s production scale of high-end products. 

Deep Processing Business -

Leverage Innovation to Facilitate Light-weight Development

The Group captured the demand from the domestic market and successfully developed large-sized aluminium parts that meet the standards of the transportation industry. Both the sales volume and variety of products for automobiles, passenger cars, as well as rail transit vehicles climbed during the Year under Review. Focusing on the fast-growing new energy automotive market, the Group continued to be the exclusive supplier of the aluminium-intensive car body frame for Chery’s electric car “eQ” models, and was granted the "Excellent Partner Award" by Chery Automobile. Furthermore, the Group partnered with FAW Group Corporation to create the first vehicle in China with all-aluminium body and all-aluminium chassis. Concurrently, the Group pioneered in becoming a major supplier of aluminium parts for carriage bodies of the“Fuxing EMU”in China. With ample industry experience coupled with advanced technologies, the Group not only improved its customers’ knowledge on the application of aluminium, but also enhanced the product development efficiency, thus ensuring a mutual benificial cooperation.

Flat Rolling Business - 

Diversify Industry Chain Extension to Flexibly Respond to Market Demands 

In response to the increasingly diverse market demands, the Group has launched a number of initiatives in recent years to improve its business layout along the industry chain. The first production line of the high value-added aluminium flat rolling project in Tianjin has commenced commercial production in the second half of the Year under Review. Production efficiency of the project is improving, while the technical team is speeding up the certification process of high-end products. The second production line is undergoing equipment testing. Upon completion, the project will become the world’s largest top-notch green aluminium flat rolling production base with state-of-the-art equipment, unveiling the new flagship in aluminium fabrication industry in China and the world. 

Looking ahead, Mr. Lu concluded, “By firmly adhering to the strategy of ‘focusing primarily on China and to a lesser extent on the overseas’, the Group will seize opportunities from the industrial structural reform and upgrade in China. Leverage the research on high value-added products, we will squarely focus on operational improvements while advancing our innovation capabiity. With the goal of becoming an integrated light-weight solution provider, we will join hands with our partners in various industries to forge ahead into a new era of ecological development.”