China Zhongwang Holdings Limited, the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one inAsia and China, announced the unaudited results for the six months ended 30 June 2014.
China Zhongwang recorded steady growth in product sales during the review period. Revenue rose 13.2% year-on-year to approximatelyRMB7.95 billion while gross profit margin slightly increased by 0.2 percentage points to 28.2%. Profit attributable to equity shareholders increased 18.6% toRMB1.27 billion.
To reward shareholders’ longstanding support for the Company, the board of directors has proposed an interim dividend ofHK$0.08 (approximately RMB0.06) per share to the holders of ordinary shares and convertible preference shares, equivalent to a dividend payout ratio of 35%. Dividend yield reaches 2.3% based on the closing price ofHK$3.47 per share as at 14 August 2014.
Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said: “During the first half of the year, China experienced moderate but stable economic growth as the country continued to drive the restructuring of its economy and vigorously implemented its industry upgrade policies, with an emphasis on the development of a green and low-carbon society. During the review period, China Zhongwang continued to focus on its three core businesses, namely, industrial aluminium extrusion products, deep-processed industrial aluminium extrusion products and aluminium flat-rolled products. Through the three operating aspects of product innovation, capacity expansion and market development, we have enhanced our production efficiency to grasp the business opportunities arising in the high-end aluminium processing industry in both domestic and overseas markets.”
The Group’s sales volume of aluminium extrusion products amounted to 368,000 tonnes during the review period, representing a 16.5% growth over the corresponding period of last year. As the Group’s major source of revenue and profit, the volume and amount of sales of industrial aluminium extrusion products grew by 14.1% and 10.6% year-on-year to approximately 307,000 tonnes andRMB6.54 billion respectively, accounting for 82.3% of the Group’s overall sales revenue.
At present, the Group owned 93 aluminium extrusion lines with an aggregate annual production capacity of over one million tonnes. In terms of production capacity, the Group is one of the leading players in the global aluminium processing industry.
During the review period, sales of industrial aluminium extrusion deep-processed products increased by 39.2% year-on-year to approximately 37,000 tonnes in volume and by 36.0% to approximatelyRMB990 million in value, accounting for 12.5% of the Group’s overall sales revenue.
Aluminium flat-rolled product business — commences production as scheduled and it is expected to become a long term growth engine.
Mr. Lu concluded: “With its cutting-edge technologies and high-calibre personnel, state-of-art production equipment, diversified product mix and sound financial resources, China Zhongwang is well-positioned to benefit from China’s industrial restructuring and the trend to build a green society. The Group will fortify its industrial aluminium extrusion business, reinforce its deep-processing industrial aluminium extrusion business that delivers growth potential, and drive the development of its aluminium flat-rolled business in an orderly manner.”
