Controversial aluminium extruder China Zhongwang Holdings Ltd reported third-quarter results yesterday. Lower sales volumes notwithstanding, the firm posted the best bottom line in the quarter in several years.
China Zhongwang reported third-quarter net income of CNY1.08 billion, a year-on-year increase from last year’s third-quarter net income of CNY1.07 billion. That result was the highest quarterly net income posted by the firm since Reuters began tracking Zhongwang’s financials in 2012.
The firm’s third-quarter revenue totaled CNY5.39 billion, a 12.5-percent rise year-on-year from last year’s third-quarter total revenue of CNY4.791 billion, marking its highest revenue in one quarter since 2013’s second quarter.
Zhongwang recorded better revenue in the quarter despite a drop-off in sales volume of 6.9 percent to 204,170 metric tons. According to the firm’s first-half filing, sales to the United States have fallen off this year to a series of trade battles being waged between the Chinese and United States governments stretching back to last year. Among the most damaging was the United States Commerce Department’s determination in July that the firm had been avoiding duties on imports of 5050 aluminium alloy, which the firm countered by asserting that it has not produced in two years.
In addition, the firm’s founder, Liu Zhongtian is facing official scrutiny by the United States Justice Department due to allegations that he, and/or companies allegedly linked to him and his family, have been smuggling aluminium into the United States. Both Liu and Zhongwang strenuously deny the charges.