China Zhongwang’s revenue in Q3 2018 reportedly climbs 30.4% and in the first nine months 28.7%

China’s Zhongwang, the World’s second largest and Asia’s largest industrial aluminium extruded products developer and manufacturer, has reportedly seen a growth in its business performance through the year 2018. In the third quarter ended on September 30, 2018, its sales volume increased from 204,170 tonnes in Q3 2017 to 247,725 tonnes, up 21.3 per cent, and revenue increased from RMB 5,389 million to RMB 7,027 million, up 30.4 per cent.

The Gross profit and net profit of the company also surged by 21.2 per cent and 14.6 per cent respectively, from RMB 1,899 million in Q3 2017 to RMB 2,302 million and from RMB 1,084 million to RMB 1,243 million. EBITDA registered a growth as well, from RMB 1,874 million in the contemporary period last year to RMB 2,106 million, up 12.4 per cent.

The company’s total sales volume in the first nine months of the year stood at 572,821 tonnes, compared to 488,731 tonnes in the same period last year. Consequently, revenue increased from RMB 12,714 million in 2017 to RMB 16,357 million (up 28.7 per cent), and gross profit and net profit from RMB 4,334 million to RMB 5,264 million (up 21.4 per cent) and from RMB 2,344 million to RMB 2,509 million (up 7 per cent), respectively. EMBITDA increased too by 14.2 per cent from RMB 4,313 million last year to RMB 4,924 million.

According to the report, Zhongwang’s aluminium alloy formwork business grew stably through 2018 and continued to drive the Group’s business performance. Further, fabricated products such as large-sized parts for railway vehicles and parts for passenger cars and buses delivered a stellar performance.

The beginning of October proved even luckier for the company as it finally found its long-awaited opportunity to promote the light-weight development of the automotive industry together with end-use customers. On October 8, Zhongwang entered into a contract with Jaguar Land Rover for supplying quality extrusion products for the car manufacture. This collaboration marked the company’s first foray into the supply chain of automakers outside China.

Mr. Lu Changqing, Chairman and President of China Zhongwang , said: "Adhering to the spirit of modern craftsmanship, we have unceasingly conducted in-depth research on technological improvement and product innovation, constantly improving quality and adding value to our products. Oustanding performance of high-end products including aluminium alloy formwork and large-sized parts for railway vehicles drove the steady business growth of the Group. Meanwhile, the Group becomes a Tier-1 supplier to Jaguar Land Rover, marking our breakthrough in the overseas automotive market."