China Zhongwang Net Profit Surges By 108.4%

China Zhongwang Holdings Limited, the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China, announced the unaudited results for the nine months ended 30 September 2012 (the "review period"). The Group achieved satisfactory growth in the review period, with revenue and profit attributable to shareholders surging by 57.4% and 108.4% year-on-year, to approximately RMB10.74 billion and RMB1.39 billion respectively. The rise in profitability is attributed to the substantial rise in sales of industrial aluminium extrusion products and deep-processing products.

Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, "Despite the challenges facing the aluminium processing industry brought about by the volatile macroeconomic conditions in 2012, China Zhongwang remains effective in expanding its presence in the China market through market strategy adjustments, strengthening research and development, and product upgrade."

The Group is committed to promoting light-weight development by providing high precision, large-section, high value-added industrial aluminium extrusion products to transportation, machinery and equipment and electric power engineering sectors. During the review period, the Group continued to focus its resources on tapping opportunities in the China market, while assigning a supplementary role to the export market. The Group actively expanded its market share in the high-end segment by providing high precision products to large enterprises in China. In the first nine months, sales revenue from the China market rose 49.5% year-on-year to RMB9.92 billion, contributing stable cash flow to the Group.

Earlier this year the Group ordered two 225MN presses -- currently the largest and most advanced presses in the world. They will be delivered starting from 2014. With the backing of advanced equipment and technologies, the Group will continue to stay at the forefront of the industry in seizing market opportunities.

Deep-processing and high-end aluminium flat rolled businesses develop as planned, offering growth momentum The new aluminum flat rolled product project is making good progress. The production base is located in Wuqing District, Tianjin City. The Group has made purchases for production equipment from Germany and the United States. Deliveries will be made in batches starting from the end of 2013.

In terms of aluminium flat rolled products, a report by the Boston Consulting Group predicts that the global consumption of aluminum flat rolled products will increase to approximately 32 million tonnes in 2020 from approximately 19 million tonnes in 2011. The China market growth is projected to outpace the global average, rising from about 7.6 million tonnes in 2011 to about 16 million tonnes in 2020, accounting for half of the global consumption.

" As one of the industry leaders, Zhongwang's top priority is to enhance our own competitiveness. We will continue to develop and diversify high-end industrial aluminum product offerings, strengthen the deep-processing business, and make an all-out effort to advance the aluminum flat rolled product project, so as to build stable and diversified revenue streams.," Lu Changqing said.