Chinese industrial extruded aluminium titan China Zhongwang Holdings Limited announced results for the first quarter late last week. Stronger demand for industrial aluminium during the quarter helped boost the firm’s bottom line in Q1.
In the year’s opening three months Zhongwang reported a sales volume of 262,025 metric tons, up by 101 percent on the year from last year’s first-quarter sales volume of 130,385 metric tons. The firm chalks up the increase to a strong demand for aluminium alloy formwork and fabricated products from the transportation segment along with increased capacity utilization of flat-rolling and industrial aluminium extrusion.
Revenue for the first quarter totaled CNY6,195 million, besting last year’s first-quarter total of CNY3,558 million by 74.1 percent. Zhongwang’s gross profit for the quarter came to CNY1,765 million, a 62.3-percent rise on the year from last year’s opening quarter gross profit of CNY1,088 million. Net profit for Zhongwang’s first quarter totaled CNY618 million, good for a 15.4-percent improvement on the year from last year’s first-quarter net profit of CNY535 million.
“Riding on the upgrades of aluminium alloy applications, China Zhongwang has been strategically investing in R&D and optimising the product portfolio in response to the changing clientele mix and market demand,” noted Lu Changqing, Chairman and President of China Zhongwang.
“In light of the production capacity utilisation ramp-up, flat-rolled products, industrial aluminium extruded products, aluminium alloy formwork, further fabricated parts of new energy vehicles and large-sized parts for rail vehicles achieved outstanding results, resulting in stable growth of the Group’s overall performance.”
During the previous quarter the product efficiency of aluminium flat rolling operations at Tianjin improved, noted the firm, which boosted both sales volumes and profitability of flat-rolled aluminium in the quarter. In addition, flat-rolled automotive aluminium products were approved for OEM use in the quarter, and a second automotive aluminium line at the plant carried out trial runs last quarter, with an aim at entering full production by year’s end.
“2019 marks the 10th anniversary of the listing of China Zhongwang on the Hong Kong Stock Exchange,” continued Lu. “Over the past decade, the Group has continued to optimise its product mix and service model, as well as extend its business footprints strategically, transforming into an integrated light-weight solutions provider. In the meantime, the Group has been sharing its achievements with shareholders by stable dividend pay-out. Looking into the future, we will grasp the opportunities arising from China’s industrial upgrade and stay committed to our core businesses, contributing to the high-quality development of the aluminium fabrication industry.”