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EQS-News / 31/10/2017 / 21:45 UTC+8
*China Zhongwang Net Profit Amounts to RMB2.34 Billion in the First Nine
Months of 2017
* * *
Product Mix Further Optimised
Expands Downstream High-end Product Applications through Overseas
Acquisitions*
*Results Highlights:*
*- *Overall sales volume for the first nine months of approximately 489,000
tonnes, total revenue of RMB12.71 billion.
- Net profit of approximately RMB2.34 billion, net profit margin of 18.4%.
- In the third quarter, the Group's revenue up 12.5% year-on-year to
approximately RMB5.39 billion while profit for the period up 1.4% to
approximately RMB1.08 billion.
- Sales of aluminium alloy formwork posted continual quarterly growth,
achieving sales volume of over 187,000 tonnes for the first nine months.
- The first production line of the aluminuim flat rolling project has
commenced commercial production.
- Successively completed two overseas acquisitions of Germany-based Alunna
and Australia-based SilverYachts, strategically expanding downstream
applications of high-end aluminium products in aviation and marine sectors.
(Hong Kong, 31 October 2017) - *China Zhongwang Holdings Limited* ("China
Zhongwang" or the "Company", together with its subsidiaries, the "Group",
stock code: 01333), a world's leading fabricated aluminium product developer
and manufacturer, announced its unaudited consolidated results for the nine
months ended 30 September 2017 (the "Period under Review"). During the
Period under Review, the sales of the high value-added aluminium alloy
formwork business posted continual quarterly growth, driving the Group's
total revenue to reach approximately RMB12.71 billion, up by 2.0% as
compared to the corresponding period of last year. Net profit was
approximately RMB2.34 billion. The benefit of continuous product mix
optimisation has been gradually realised in the third quarter. For the third
quarter ended 30 September 2017, the Group saw an uptrend in both its
revenue and profit for the period, which increased by 12.5% and 1.4%,
respectively.
*Mr. Lu Changqing, President and Executive Director of China Zhongwang*,
said, "After the product mix adjustment in the first half of the year, the
value added by the new products began to reveal in the third quarter.
Meanwhile, the Group has completed two overseas acquisitions, namely Alunna,
a Germany-based seamless extruded tubes manufacturer serving major players
in the international aviation industry, and SilverYachts, a top
all-aluminium superyacht builder based in Australia. The acquisitions mark a
strategic step for the Group to make further inroads in expanding the
application of aluminium in high-end sectors, and also signify the Group's
direct entry into the downstream end product manufacturing business. China
Zhongwang is well-prepared to provide all-round integrated lightweight
solutions, with its further optimised product mix and strengthened
comprehensive capabilities."
*Competitive Aluminium Alloy Formwork Business Contributes to Further
Product Mix Optimisation*
During the Period under Review, with the continuously improved production
efficiency and product yield for the segment, the Group's aluminium alloy
formworks recorded an increasing quarterly sales volume, at 48,000 tonnes,
63,000 tonnes and 76,000 tonnes for the first three quarters, respectively,
which translated into the accumulated shipments for the first nine months at
approximately 187,000 tonnes, accounting for 38.3% of the Group's total
sales volume. Benefiting from the patented alloying and surface treatment
techniques, the quality of China Zhongwang's aluminium alloy formworks
significantly outperformed the market. The average selling price reached
RMB33,088 per tonne, pulling the Group's overall average selling price
upwards considerably by 22.5% to RMB26,014 per tonne. During the Period
under Review, revenue of the aluminium alloy formworks totalled RMB6.19
billion, accounting for 48.7% of the Group's total revenue. The Group
continued to optimise its production capacity and product mix. One of the
two ultra-large 225MN extrusion presses procured previously has commenced
commercial production in October, which is expected to effectively unleash
the value generated by the product mix optimisation.
*Commercial Production of Aluminium Flat Rolling Project Commenced to
Enhance Industry Chain Extension*
In the third quarter, the first production line in the Tianjin-based flat
rolling project commenced commercial production, signifying a more extensive
business distribution along the industry chain. The main products of the
project in the early stage of production include high quality aluminium
alloy plates and sheets that are supplied to the transportation, industrial
equipment, and chemical container sectors. The technology and R&D team has
been taking forward the accreditation process for high-end products. The
second production line is carrying out equipment testing as scheduled. The
official kick-off for the aluminium flat rolling business is conducive to
consolidating the Group's competitiveness in the long run.
*Successive International Acquisitions to Promote High-end Applications of
Aluminium*
The Group has completed two international acquisitions lately, marking a
milestone for China Zhongwang's international business expansion.
Aluminiumwerk Unna AG ("Alunna") mainly produces a myriad of high quality
aluminium alloy extrusions including high-end seamless and porthole tubes
that are widely used in the aviation and automobile industries. SilverYachts
Ltd. ("SilverYachts") is the only company in the world capable of building
large-scale all-aluminium alloy superyachts of over 70 metres, as well as a
pioneer in the new application of aluminium alloy in the marine sector. The
businesses of the above two outstanding companies are highly complementary
to the Group's existing businesses, therefore will create a win-win
situation for all parties upon the synergies derived from the acquisition.
Looking ahead, *Mr. Lu Changqing* said, "The Group has incorporated and
integrated with remarkable aluminium processing and downstream enterprises
while consolidating its own product mix, industry chain extension and
profitability. Such moves add momentum to the Group's future sustainable
growth. On behalf of the Board, I would like to welcome both Alunna and
SilverYachts again in joining the China Zhongwang family, and look forward
to witnessing with our shareholders a broader future to be created by the
Group."
_- End -_
*About China Zhongwang Holdings Limited*
China Zhongwang is the second largest industrial aluminium extrusion
products developer and manufacturer in the world and the largest in Asia. It
has, over the years, been focusing on the light-weight development of
transportation, machinery and equipment and electric power engineering
sectors through the provision of quality industrial aluminium extrusion
products. It now has over 90 internationally advanced aluminium extrusion
production lines, including 21 production lines of large-scale aluminium
extrusion presses of 75MN or above. The Group's unique core competitiveness
in the industry lies in its comprehensive strength of four-in-one model,
i.e. the integration of smelting and casting, die design, advanced equipment
and R&D capability all under one roof.
In addition, to further leverage its existing strengths in the industry, the
Group is developing the high value-added aluminium flat rolling project.
Upon completion, the project will become the world's largest top-notch
aluminium flat rolling production base with state-of-the-art equipment. This
new business venture will not only enable the Group to further capitalise on
its leading edge in aluminium alloy smelting and casting and product R&D,
but also achieve synergistic development with its existing aluminium
extrusion and deep processing businesses by taking full advantage of shared
resources.
For further information on the Group, please visit www.zhongwang.com [1].
Document: http://n.eqs.com/c/fncls.ssp?u=QHMXAOUQKS [2]
Document title: China Zhongwang Net Profit Amounts to RMB2.34 Billion in the
First Nine Months of 2017
31/10/2017 Dissemination of a Marketing Press Release, transmitted by EQS
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(END) Dow Jones Newswires
October 31, 2017 09:46 ET (13:46 GMT)
