Results Highlights:
● With continuous optimization of production and operation, sales volume hit record high
● Utilization of aluminium flat rolling business continued to rise, generating growth in both sales and revenue
● Embarked on the aluminium alloy formwork leasing business to propel sustainable development
● Successfully tapped into the automobile market with high-end aluminium extrusion products and became Tier-1 supplier of European luxury automobile brands
● SILVERYACHTS successfully delivered an 85-metre long all-aluminium alloy superyacht
(Hong Kong, 27 March 2020) - 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 audited results for the year ended 31 December 2019 ("the Year under Review"). During the Year under Review, the Group’s sales volume increased by 4.9% year-on-year to approximately 960,000 tonnes. Revenue amounted to approximately RMB23.58 billion. Gross profit margin stood at 30.1%. Net profit for the year was approximately RMB3.18 billion.
Mr. Lu Changqing, Chairman and President of China Zhongwang, said, “With the structural transformation and upgrade of the aluminium industry, great potential will be unleashed in high-end application, further fabrication and new infrastructure construction. Leveraging its advanced equipment and extensive industry know-how, the Group strives for excellence in product development and is committed to promoting the light-weight development of the transportation sector. Meanwhile, upholding its principles of energy conservation and environmental protection, the Group actively promotes aluminium alloy formwork as an ecological construction material. We have also developed high value-added products which conform to the standards for 5G base station construction, and designed and built all-aluminium commercial vessels that are environmentally friendly. Our diversified business portfolio and unmatched R&D capabilities will further strengthen the Group’s position as a leader of the industry.”
Aluminium Extrusion Business - Explores Diversified Business Models and Joins hands with International Automakers
During the Year under Review, industrial aluminium extruded products made stable contributions to the Group. Ecological construction aluminium alloy formwork is one of the Group's key products. During the Year under Review, the Group embarked on the aluminium alloy formwork leasing business model to develop a recurring income stream, and supplied aluminium alloy formwork to large-scale real estate enterprises in China for major property project developments. The Group’s strength in aluminium formwork, coupled with its competitive edge in production technology, enabled it to develop a comprehensive range ancillary items that include supporting components and connectors, therefore effectively broadened the application of aluminium alloy formwork. Although the Group’s performance was affected as the revenue and profit of the leasing business are recognised in installments, the aluminium alloy formwork leasing business model will increase the Group’s competitiveness in the long run, bringing in long-term, stable and sustainable income.
In addition, the Group successfully tapped into the market of high-end aluminium extrusion products for automobiles. It is a supplier of high-quality aluminium extrusion products to a number of international automakers, which included the U.K. plant of Jaguar Land Rover as a Tier-1 supplier. It was also nominated as an aluminium extrusion products supplier for the BMW Group, marking the Group’s accomplishment as a supplier to European luxury automobile brands.
Aluminium Flat Rolling Business - Growth in both Sales and Revenue following Portfolio Optimization
As the Group continued to explore the aluminium flat rolling market, sales and revenue of aluminium flat rolled products both increased. During the Year under Review, the Group focused on the operation of the first production line, and strived to provide high-quality aluminium flat rolled products to customers in the sectors of industrial materials, transportation, aviation and aerospace. Furthermore, it also steadily commissioned pilot production in the second production line, mainly focusing on aluminium alloy products for packaging, as well as developed and produced can lids, computer casings and battery soft-pack. In terms of product R&D, the Group proactively advanced with the research and development of high-end aluminium flat-rolled products with remarkable results. Some of these products have been delivered in small quantities. In terms of automotive body sheets, the Group has received the certifications of a number of domestic automakers and carried out small-volume pilot production. It will continue to step up its efforts to obtain certifications from European, American and Japanese automakers and accelerate sample testing processes, so as to optimize its product portfolio and improve its profitability.
Further Fabrication Business - Capitalises on Industry Development Trends to Seize the Light-weight Transportation Opportunity
As the high-end transportation sectors such as new energy vehicles and rail vehicles are moving towards light-weight development, the Group leverages its advantages in R&D and production efficiency to develop a range of fabricated products with advanced technology and high added value. During the Year under Review, the Group successfully completed the road test of all-aluminium alloy electric van logistics vehicle jointly manufactured with FAW Jiefang Automotive Co., Ltd. it further explored the light-weight vehicle market via cooperation with leading domestic automakers such as Chery and BYD, and provided further fabricated products for rail transit vehicles, such as the “Fuxing EMU” high-speed trains, inter-city trains, commercial maglev trains and subway trains, as the major supplier of aluminium extrusion products for “Fuxing EMU” train body. Meanwhile, through cooperation with CRRC, some of the Group’s vehicle body aluminium extrusion products and further fabricated products have been exported to overseas markets.
Prudent approach in Global Expansion and Focus on R&D and Innovation
The Group continues to explore international cooperation to win the trust and recognition of customers around the world. During the Year under Review, ALUnna, a high-end aluminium extrusion subsidiary of the Group based in Germany, successfully obtained a number of international qualification certifications in the aviation and aerospace sectors. It has continued to provide high-quality aluminium products to globally leading enterprises such as Airbus, Boeing, Mercedes-Benz and BMW. In addition, SilverYachts, a superyacht builder of the Group based in Australia, successfully delivered an 85-metre long all-aluminium alloy superyacht.
Looking ahead, Mr. Lu Changqing said, “We remain dedicated to our mission and aspire to provide our customers with high quality further fabrication aluminium products, driving product portfolio upgrade and value creation, and further enhancing our profitability. We will continue to regard our customers as enduring partners to create mutual benefits in the sectors of ecological construction, transportation, mechanical equipment and power engineering, and firmly capture the opportunities in the industry value chain.”
