China Zhongwang Reports 38.3 Percent Jump In Revenue During 2019’s Opening Half

China Zhongwang Reports 38.3 Percent Jump In Revenue During 2019’s Opening Half

Chinese aluminium extruder China Zhongwang released results for the first six months of 2019 late last week. The firm’s first-half numbers rose across the board thanks to a focus upon value-added aluminium products.

In the opening half of 2019 Zhongwang reported a 63.7-percent rise in sales volumes on the year, from 325,096 metric tons to 532,275 metric tons. The firm cited a bump in demand for high-quality aluminium products, specifically for extruded aluminium and flat-rolled aluminium, as motivating the increase.

Zhongwang’s first-half revenue rose to CNY12,900 million, up by 38.3 percent on the year from last year’s first-half revenue of CNY9,329 million. Gross profit for the first half came to CNY3,909 million, better by 32 percent on the year from last year’s opening half gross profit of CNY2,961 million.

EBITDA in the half came to CNY3,425 million, surpassing last year’s first-half EBITDA of CNY2,818 million by 21.5 percent. Zhongwang reported a net profit in the half of CNY1,465 million, better by 15.1 percent on last year’s first-half net profit of CNY1,266 million.

Zhongwang’s Chairman and President Lu Changqing elaborated upon the firm’s aims in the first half.

“On the back of the ongoing upgrading and transformation of China’s manufacturing industry, breakthroughs are being made in widening the applications of aluminium alloy, which is dubbed a ‘green metal,’ in various industries. The Group’s outstanding capability in research and development, specialisation in high-end products and consistent optimisation of its product mix have enabled it to progressively expand its businesses, providing one-stop light-weight solutions for such high-end applications as ecological construction, new energy vehicles, rail transport, shipbuilding and aviation. The Group always dedicates itself to the aluminium fabrication, therefore it has long been in a leading position in the industry.”

Zhongwang made several major moves across its business areas in the first half of the year. In Aluminium Extrusions, the firm began leasing aluminium alloy framework in a bid to enhancing long-term profitability. In Aluminium Flat Rolling, Zhongwang continues to ramp up production and is laboring to obtain certification for its high-end aluminium product offerings. Zhongwang’s Further Fabrication Business spent the year’s first half positioning itself to take advantage of the global lightweighting trend by promoting research and development efforts on new value-added product offerings for the transportation industry.

“The year 2019 marks the 10th anniversary of China Zhongwang’s listing on the Hong Kong Stock Exchange,” said Lu of the coming months. “Over the past decade, the Group has always upheld its core values and became a reliable partner for our customers. As aluminium find its potential in different applications, the Group will continue its effort in aluminium fabrication with its leading integrated light-weight solutions, awaiting to be inspired by more aspirations and enlightenment.”