China Zhongwang Holdings H1 Revenue up by 38.3% YoY
China Zhongwang Holdings Limited announced its unaudited results for the six months ended 30 June 2019. During the Period under Review, the demand for high-quality aluminium products increased, contributing to sharp increases in the sales of the Group’s industrial extruded aluminium products and aluminium flat-rolled products. Such, coupled with the encouraging sales performance of the aluminium alloy formwork, drove up the Group’s overall sales volume by 63.7% year on year to 532,275 tonnes. As a result, the Group’s total revenue rose by 38.3% year on year to RMB12.90 billion. Gross profit grew by 32% year on year to RMB3.91 billion. Gross margin amounted to 30.3%. Net profit increased by 15.7% year on year to RMB1.47 billion.
Aluminium Extrusion Business - Initiating the leasing business of aluminium alloy formwork with the aim of enhancing long-term profitability
Aluminium alloy formwork has been widely used as an ecological building material in recent years. During the Period under Review, the aluminium alloy formwork continued to contribute to the Group's financial results. With its expertise in design, techniques and technology, the Group successfully developed a comprehensive range of aluminium formwork system that include aluminium supporting components and connectors, enriching its product mix. Meanwhile, the application of aluminium alloy formwork has been extended to infrastructure construction, such as underground integrated pipe corridors, subway tunnels and airport tunnels, thus increased the penetration rate of aluminium alloy formwork.
To ensure its sustainable development, and enhance its long-term profitability, the Group commenced the leasing business of aluminium alloy formwork. This not only deepens the Group’s contact with the end market but may also widen its potential profit in the long run.
Aluminium Flat Rolling Business – Pressing ahead with capacity ramp-up and effort to obtain certification for high-end products to align with international standards
The Group has been making progress at its aluminium flat rolling plant in Tianjin in response to the demand for high-end aluminium products. The first production line has been running smoothly and fully integrated with improved production efficiency, unlocking the production capacity. During the Period under Review, sales volume at the Group’s aluminium flat rolling plant increased significantly. The clients of the flat rolling business are mainly from the industrial and transportation sector, the Group is also supplying in small amount of automotive body sheets for new energy vehicle manufacturers. Meanwhile, the Group has been working on product accreditation procedures with some European brands and Japanese brands. It has also developed a wide range of aluminium products for packaging, including aluminium alloy sheets for can lids, laptop casings and soft-pack battery. The second production line at the plant in Tianjin has commenced pilot production in small scale.
Mr Lu Changqing chairman and President of China Zhongwang said that “On the back of the ongoing upgrading and transformation of China’s manufacturing industry, breakthroughs are being made in widening the applications of aluminium alloy, which is dubbed a ‘green metal’, in various industries. The Group’s outstanding capability in research and development, specialisation in high-end products and consistent optimisation of its product mix have enabled it to progressively expand its businesses, providing one-stop light-weight solutions for such high-end applications as ecological construction, new energy vehicles, rail transport, shipbuilding and aviation. The Group always dedicates itself to the aluminium fabrication, therefore it has long been in a leading position in the industry.”
Source : Strategic Research Institute