China Zhongwang net profit increases by 30% to RMB2.52 billion in Q1 2015

China Zhongwang Holdings Limited, together with its subsidiaries, announced its unaudited results for the nine months ended 30 September 2015.

During the review period, the Group’s revenue rose 3.0% year-on-year to RMB12.68 billion. As sales of high-end industrial aluminium products increased, together with reduced raw material costs due to a decline in the price of aluminium, the Group’s gross profit margin increased by 6.2 percentage points to 34.8%. Profit attributable to equity shareholders surged by 29.1% year on year to approximately RMB2.52 billion.

Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, “Seizing opportunities arising from China’s industry upgrade and the light-weight development trend of the transportation sector, the Group continued to focus on new product development while enhancing its production efficiency and optimizing product mix during the review period.”

Industrial aluminium extrusion products: average selling price rose 5.8% year on year

The major extrusion production lines of the Group were all running at full capacity during the review period. As such, the Group focused its business operations on securing the production and sales of products with higher gross profit, resulting in 4.1% decline in output of industrial aluminium extrusion products, to 457,527 tonnes. Nevertheless, as the share of high-end, relatively high-priced industrial aluminium extrusion products expanded, the average selling price of the Group’s industrial aluminium extrusion products increased by 5.8% to RMB22,540 per tonne for the review period.

New deep-processed products continued to grow

Currently, the Group’s deep-processed products sold were mainly pallets for industrial use and train-body accessories. During the review period, the sales volume of deep-processed products increased by 5.7% year on year to 53,658 tonnes. The average selling price of deep-processed products was RMB27,614 per tonne for the review period, about the same as that for the corresponding period in 2014.

Tianjin plant to be commissioned at the end of this year

China Zhongwang’s high value-added aluminium flat rolled product project in Tianjin comprises of two phases. Phase I, with a designed annual production capacity of 1.8 million tonnes, is the world’s largest single-plant flat rolled aluminium project investment ever. Phase I has two production lines. The first production line has completed plant construction and equipment installation. The project is scheduled to commence production by the end of this year.