China Zhongwang 1H2018 Revenue Increases by 27.4% to RMB9.33 Billion

Focuses on Innovating High Value-added Products
Leads the Light-weight Development

Time:24 August 2018 Font size

Results Highlights:

•  Overall sales volume up 14.2% year-on-year to 325,000 tonnes. 

• Total revenue up 27.4% year-on-year to RMB9.33 billion.

• Gross profit up 21.6% year-on-year to RMB2.96 billion.

•  Net profit rose to RMB1.27 billion.

•  Declared an interim dividend of HKD0.10 per share, representing a dividend payout ratio of approximately 56.3%.


(Hong Kong, 24 August 2018) - China Zhongwang Holdings Limited (“China Zhongwang” or the “Company”, together with its subsidiaries the “Group”, stock code: 01333), a world-leading fabricated aluminium products developer and manufacturer, announced its unaudited consolidated results for the six months ended 30 June 2018 (“the Period under Review”). During the Period under Review, the Group’s total revenue rose by 27.4% year-on-year to RMB9.33 billion. The upgraded version of the high value-added aluminium alloy formwork continued to receive positive market responses, and its sales volume increased by 26.3% year-on-year to 141,000 tonnes. Overall gross profit was RMB2.96 billion, representing an increase of 21.6% year-on-year. Overall gross margin was 31.7%. Net Profit was RMB1.27 billion.


The Board has declared an interim dividend of HKD0.10 per share, equivalent to a dividend payout ratio of approximately 56.3%. China Zhongwang is committed to good corporate governance and strives to reward shareholders. The Group’s dividend payout ratio has remained at a high level over the past five years. Since June this year, China Zhongwang has been included in the “Hang Seng High Dividend Yield Index” and will be included in the “Hang Seng SCHK High Dividend Low Volatility Index” from September this year, reflecting the recognition of the Group's stable dividend payout by the capital market.


Mr. Lu Changqing, Chairman and President of China Zhongwang, said, “In China, most industries have been striving for the transition towards high-end development with low-carbon emissions, creating new opportunites for the aluminium alloy products. The Group has capitalised on the opportunities by focusing on the innovation and quality enhancement of high value-added products, strengthening its footholds in high-end sectors such as ecological construction, new energy vehicles and rail transportation, so as to drive a steady business growth.”


Aluminium Extrusion Business – Promote High-end Application of Ecological Construction

With strong R&D strength, advanced production techniques and adequate capacity, the Group has constantly increased the proportion of high value-added products. As a new ecological construction material, aluminum alloy formwork, a key product of the Group, has gained traction rapidly in China along with the development of low-carbon economy. The Group launched the upgraded version of aluminum alloy formwork with improved product quality and environmental performance. The product continued to receive positive market response and has built a nationwide clientele. During the Period under Review, both the sales volume and revenue of aluminum alloy formwork increased significantly, making it the growth engine of the Group’s performance. In addition, in the second batch of “Manufacturing Industry Individual Champion Enterprises and Individual Champion Products List” newly released by the Ministry of Industry and Information Technology of China, the Group was honored as one of the “Individual Champion Exemplary Enterprises (industrial aluminium extruded products category)”. Winning this recognition highlights the Group’s comprehensive strength accumulated over the years in the field of aluminium extrusion. It is also a national-level recognition of the Group’s contribution to China’s industrial upgrade.


Further Fabrication Business – Lead the Light-weight Development of Transportation

The Group has been proactively promoting the light-weight development of transportation. With its one-stop solution that covers design, R&D, production, and assembly services, the Group continued to deepen its cooperation with Chinese automakers in the field of new energy vehicles. The Group has developed a rich product portfolio of all-aluminium body frames and parts, including being an exclusive supplier of all-aluminium body frame for “Qiantu K50”, the electric sports car newly-launched by CH-Auto Technology, and Chery’s “eQ1” electric car. The Group also joined hands with FAW Jiefang Automotive to co-develop an unmanned container handler. In addition, the Group, as the key supplier of CRRC, has supplied further fabricated aluminium products for the long version of high-speed train “Fuxing EMU”.


Flat Rolling Business – Building a New Flagship of Aluminium Fabrication

In response to the increasing demand for high-end products, the Group has been actively pushing forward the aluminium flat rolling project in Tianjin. Since its start of commercial production in the second half of 2017, the first production line has been contributing stable revenue to the Group by producing principally high-quality standard products for customers from sectors including transportation and high-end manufacturing. The project has obtained authoritative certifications covering a wide range of sectors, including automotive, aviation, shipbuilding and rail transportation. Meanwhile, the second production line is undergoing equipment optimisation and conducting trial production for potential clients.


Achieve Synergies Through Integrated Development

With the joining of the leading aluminium extrusion manufacturer Aluminiumwerk Unna AG. (“Alunna”) and the all-aluminium superyacht builder Silver Yachts Ltd. (“Silver Yachts”) in the second half of last year, the Group’s businesses have become more diversified. While the technological exchange between the Group and Alunna continues, the Group is studying plans to help Alunna expand production capacity. Furthermore, Silver Yachts has established a shipyard in the coastal area of Guangdong Province, China, with a view of expanding into all-aluminium yachts and commercial vessels in domestic market.


Looking ahead, Mr. Lu concluded, “Against the backdrop of the rapid development of new energy vehicles, the continuous expansion of high-speed rail and urban rail transit networks, and the demand for ecological construction driven by new urbanisation, aluminium consumption upgrade continues in China. China Zhongwang will keep on its investment in high-end sectors and provide one-stop light-weight solutions for customers, while create long-term value for shareholders and fulfil its social responsibilities.”