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

Steady Profit Growth with Increasing Capacity Utilisation

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Results Highlights:

(RMB million)	For the three months ended 31 March		Change YoY
	2019	2018
Sales volume (tonnes)	262,025	130,385	+101.0%
Revenue	6,195	3,558	+74.1%
Gross profit	1,765	1,088	+62.3%
Net profit	618	535	+15.4%

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.”

About China Zhongwang Holdings Limited

China Zhongwang is the second largest industrial aluminium extruded
products developer and manufacturer in the world and the largest in Asia. The
Group provides a myriad of quality fabricated aluminium products and offers
integrated light-weight solutions for such downstream sectors and fields as
ecological construction, transportation, machinery and equipment and electric
power engineering.

With integrated resources, the Group’s three core businesses, namely
industrial aluminium extrusion, aluminium flat rolling and further fabrication
have achieved synergistic development. In 2017, the Group expanded its business
presence in the transportation sector by acquiring Aluminiumwerk Unna AG., a high-end
aluminium extrusion manufacturer, and Silver Yachts Ltd., an all-aluminium
superyacht builder, tapping into the end-use manufacturing in the marine
sector. Having built excellent teams of research and development, technology
and design, the Group is able to provide one-stop light-weight solutions
covering independent design, manufacturing, fabrication and after-sales
services. Looking ahead to the future, the Group will continue to promote the
applications of high-end fabricated aluminium products, aiming to offer
light-weight solutions to the society so that people can live a quality life
with low energy consumption.

For
further information on the Group, please visit our official website at www.zhongwang.com.