China Zhongwang 2019 First Quarter Revenue Surges 74.1% to RMB6.2 Billion

Steady Profit Growth with Increasing Capacity Utilisation

Results Highlights:

HONG KONG, CHINA – Media OutReach – 26 April 2019 – 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 results for the three months ended 31 March 2019 (“the Period under Review”). During the Period under Review, the sales performance of aluminium alloy formwork and further fabricated products for transportation segment remained robust, which, coupled with the growing capacity utilisation of flat rolling and industrial aluminium extrusion, drove the Group’s total sales volume to increase by 101.0% year-on-year to 262,025 tonnes. The Group’s total revenue rose by 74.1% year-on-year to RMB6.2 billion. Overall gross profit grew by 62.3% year-on-year to RMB1.8 billion. Net profit up by 15.4% year-on-year to RMB618 million.

Mr. Lu Changqing, Chairman and President of China Zhongwang, said, “Riding on the upgrades of aluminium alloy applications, China Zhongwang has been strategically investing in R&D and optimising the product portfolio in response to the changing clientele mix and market demand. In light of the production capacity utilisation ramp-up, flat-rolled products, industrial aluminium extruded products, aluminium alloy formwork, further fabricated parts of new energy vehicles and large-sized parts for rail vehicles achieved outstanding results, resulting in stable growth of the Group’s overall performance.”

Leading Position in Aluminium Alloy Formwork Industry

As a growth engine of the Group’s overall performance, aluminium alloy formwork, the ecological construction material continued to grow during the Period under Review. Leveraging its exceptional innovation capability, the Group has been developing the all-aluminium formwork components and scaffoldings to enrich the product portfolio. Meanwhile, the Group has expanded the application of aluminium alloy formwork to public infrastructure projects such as underground pipe, subway tunnel and airport tunnel. Given the relatively low market penetration of aluminium alloy formwork in China, as well as the favourable policies on ecological construction, aluminium alloy formwork sees substantial market potential.

Steady Progress on Aluminium Flat Rolling Business  

During the Period under Review, the production efficiency of the aluminium flat rolling project in Tianjin gradually improved, contributing to a notable growth in the sales volume and revenue of flat rolling business. The aluminium automotive body sheet has passed accreditations from several new energy vehicle OEMs in China, and pilot production is underway. Meanwhile, the second production line has been conducting trial production for potential clients, expecting to commence production within this year.

State-level Recognition in Innovation Capability

Lately, China Academy of Machinery Science and Technology Group has established the “National Innovation Centre for Light-weight Material, Forming Techniques and Equipment” jointly with research institutes and leading enterprises from various industries. As a leader of the aluminium fabrication industry, the Group plays its role in this national innovation centre, reaffirming the Group’s leading position.

Looking ahead, Mr. Lu concluded, “2019 marks the 10th anniversary of the listing of China Zhongwang on the Hong Kong Stock Exchange. Over the past decade, the Group has continued to optimise its product mix and service model, as well as extend its business footprints strategically, transforming into an integrated light-weight solutions provider. In the meantime, the Group has been sharing its achievements with shareholders by stable dividend pay-out. Looking into the future, we will grasp the opportunities arising from China’s industrial upgrade and stay committed to our core businesses, contributing to the high-quality development of the aluminium fabrication industry.”