China Zhongwang 2015 net profit rises 13.2% to RMB2.8 bln

China Zhongwang Holdings Limited, the world's leading aluminium fabricated product developer and manufacturer, announced its audited annual results for the year ended 31 December 2015.

During the year under review, the economic growth of China and the global markets continued to slow down. The Group gradually adjusted its production capacity and optimized the product mix by further increasing investments in technology as well as research and development (“R&D”), thereby improving its profitability and achieved total revenue of approximately RMB16.17 billion, representing a slight increase when compared with that of 2014. As the revenue contribution from high-end products increased, the overall gross margin increased by 4.9 percentage points to 32.9 per cent year-on-year. Profit attributable to equity shareholders increased by approximately 13.2 per cent year-on-year to approximately RMB2.80 billion, and basic earnings per share rose to RMB0.40. To reward shareholders for their support, the Board has recommended a final dividend of HKD0.06 (approximately RMB0.05) per share for the financial year ended 31 December 2015. Together with the interim dividend, the dividend per share for the year totalled HKD0.17 (approximately RMB0.14), which is equivalent to a dividend payout ratio of approximately 35.4 per cent on a full-year basis.

Mr. Lu Changqing, President and Executive Director of China Zhongwang, said, “China’s economy is entering a new normal phase of steady growth while economic growth has shifted from the previous mode of quantity first to the new mode of focusing on both quantity and quality, bringing unprecedented development opportunities for the aluminium processing industry. We adhered to the strategy of “primary focus on China, complemented by overseas markets”, continued to dedicate efforts on the China market, and promoted the application of high-end aluminium processed products in the sectors of transportation, machinery and equipment, and electrical engineering. During the Year under Review, we continued to leverage the internal synergies of our three core businesses, namely industrial aluminium extrusion, deep processing and aluminium flat rolling businesses. The Group actively enhanced its R&D as well as innovation, optimized product mix, enhanced production technologies, strengthened internal management, and further consolidated core competitive strengths and profitability, to achieve the encouraging results for 2015.”