China Zhongwang's adjusted net profit in H1 2016 rises 0.5% YoY to RMB1.51 bln

The world's leading fabricated aluminium product manufacturer China Zhongwang Holdings Limited announced its unaudited consolidated results for the first half of the current financial year ended 30 June 2016. The Group's external sales volume increased by 6.8 per cent year-on-year to approximately 368,000 tonnes and total revenue totalled at approximately RMB7.68 billion. The rise in high-end products sales revenue contributed to the year-on-year gross margin expansion by 4.5 per cent.

China Zhongwang's adjusted net profit scaled higher by 0.5 per cent to RMB1.51 billion vis-a-vis the corresponding period previous year. Adjusted earnings per share stood at around RMB0.21. The Board of Directors has declared an interim dividend of HK$0.11 (approximately RMB0.09) per share to the shareholders of the company.

During the period under review, the Group effectively strengthened its overall profitability as it continued to optimize its product mix. Gross margin of the aluminium extrusion business increased from 29.5 per cent for the corresponding period in 2015 to 31.8 per cent for the first six months of 2016.

The deep processing business is one of the Group's growth drivers. During the period under review, sales volume of the deep processing business surged 64.1 per cent year-on-year to approximately 47,000 tonnes, contributing approximately RMB1.26 billion in revenue, an increase of 57.9 per cent.



Commenting on the period ended, Mr. Lu Changqing, President and Executive Director of China Zhongwang, said, "The Chinese Government actively promotes transformation and upgrading of industries, creating new opportunities for green and environmentally friendly fabricated aluminium products... In the first half of 2016, the Group continued to achieve business growth by optimizing its product mix, upgrading production capacity, and investing in R&D and innovation."

Sounding hopeful about the future, Mr. Lu added, "In view of the increasing trend of material upgrade in the transportation sector and equipment upgrade in the industrial sector, the Group has capacity expansion plans to fulfil the increasing downstream demand. Leveraging its technology, R&D and product design edge, China Zhongwang will capitalize on the synergy of its three core businesses, namely industrial aluminium extrusion, deep processing and aluminium flat rolling, to strengthen its foothold as a leading developer and manufacturer of high-end fabricated aluminium products and reward shareholders with positive returns."