China Zhongwang Q4 profit jumps on strong sales of automotive aluminium products

China Zhongwang, world’s leading aluminium extrusions product manufacturer, announced its fourth quarter results. The company’s net profit jumped in the fourth quarter as it ramped up sales of new products for the transportation sector, according to news published by Reuters.

China Zhongwang reported net income of 1.524 billion yuan ($241.12 million) for the fourth quarter of 2017, according to Reuters calculations. The company had posted net income of 1.08 billion yuan ($163 million) during the third quarter of 2017.

Zhongwang’s annual profit stood at 3.87 billion yuan, up 33.1 per cent. For the full year of 2017, the company generated revenue of 19.46 billion yuan, an increase of 16.6 per cent.

“The group developed and launched large-sectional aluminium parts for passenger cars and commercial vehicles, which received positive market feedback,” Zhongwang said in a statement.

The company has “been expanding its business into the sectors of new energy vehicles and rail transportation,” it said, adding it had been supplying deep-processed aluminium products for high-speed trains.

Revenues in the deep-processing business declined 70.4 per cent over the year in 2017 “mainly due to the declined export volume of deep-processed products to the United States ... as trade friction in aluminium industry between the US and China heated up.”