China Zhongwang 1H 2015 net profit rises17.9% to RMB1.5 billion

China Zhongwang Holdings Limited, the world's second largest industrial aluminium extrusion product developer and manufacturer, announced its unaudited results for the six months ended 30 June 2015. During the review period, the Group’s total revenue stood at approximately RMB 7.89 billion, roughly the same level for the corresponding period of last year. Benefitted from the optimisation of the product structure, gross profit margin rose from 28.2% in the corresponding period of 2014 to 32.2%. Profit attributable to equity shareholders increased by 17.9% year on year to approximately RMB1.5 billion. Basic earnings per share also rose by 13.2% to approximately RMB0.21.

To reward shareholders’ support, the Board of Directors has declared an interim dividend of HK$0.11 (approximately RMB0.09) per share to all shareholders of the Company, representing a dividend payout ratio of 42.8%.

Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, “Our operational strategy in the first half of 2015 focused on maintaining our market share while increasing the share of high-end products as a percentage of total sales. As such, our gross profit margin rose notably, marked by a 15% increase in average processing fees per tonne. This is attributable to our continued investment in product R&D and innovation, as well as the concerted effort of our entire staff force. We will adhere to this strategy in the second half of this year and continue to increase the share of high-end products in our product mix.”

Sales volume of aluminium extrusion products was 345,000 tonnes, representing a year-on-year decrease of 6.4%. This was mainly due to the fact that the major extrusion production lines of the Group were all running at full capacity during the review period.

At present, though industrial aluminium pallets and automotive accessories remain its main deep-processed product, the Group has also successfully developed various high-end aluminium alloy deep processing applications including semi-trailers, oil tankers, fire trucks, high-speed train carriage bodies suitable for alpine-cold regions, and construction formworks etc. In support of the development of these new applications, the Group has invested in expanding its production capacity.

The construction of phase I of the Group’s high value-added aluminium flat rolled product project in Tianjin entered the critical stage. Phase I has two production lines with a designed annual production capacity of 1.8 million tonnes.