News

China Zhongwang’s Revenue Increases by 28.7% to RMB16.36 Billion in the First Nine Months of 2018

Becomes a Tier-1 supplier to Jaguar Land
Rover

Propels Integrated Light-weight Solutions

 

Results
Highlights:

  • Aluminium alloy
    formwork business grows stably and continues to be a key growth engine of the
    Group's business performance.
  • Further fabricated
    products such as large-sized parts for railway vehicles, parts for passenger
    cars and buses deliver a stellar performance.
  • Becomes a Tier-1 supplier to Jaguar Land Rover, marking the Group's
    first foray into the supply chain of automakers outside China.

 

Financial Highlights:


RMB million

For the third
quarter

ended 30
September

For the nine
months

ended 30
September

2018

2017

Change YoY

2018

2017

Change YoY

Sales volume (tonnes)

247,725

204,170

21.3%

572,821

488,731

17.2%

Revenue

7,027

5,389

30.4%

16,357

12,714

28.7%

Gross profit

2,302

1,899

21.2%

5,264

4,334

21.4%

EBITDA

2,106

1,874

12.4%

4,924

4,313

14.2%

Net profit

1,243

1,084

14.6%

2,509

2,344

7.0%

 

HONG KONG, CHINA - Media OutReach - 31 October 2018
- China Zhongwang Holdings Limited ("China
Zhongwang" or the "Company", together with its subsidiaries the "Group", stock
code: 01333), a world-leading fabricated aluminium products developer and
manufacturer, announced its unaudited consolidated results for the nine months
ended 30 September 2018 ("the Period under Review"). During the Period under Review, the Group's total revenue rose by 28.7% year-on-year to RMB16.36 billion. Overall gross profit was RMB5.26 billion, representing an increase of 21.4% year-on-year. Net Profit up by 7.0% year-on-year to RMB2.51 billion.

 

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."

 

Join Hands with Jaguar Land Rover to Propel the Light-weight Development of
the Automotive Industry


The Group has recently entered
into a contract with Jaguar Land Rover, and will supply quality extruded products
to Jaguar Land Rover's British company as a Tier-1 supplier. This first
collaboration between the two companies marks the Group's first foray into the
supply chain of automakers outside China, recognising the Group's comprehensive
R&D capabilities, capacity that covers the entire production process, and
thorough quality control system. The Group has been actively exploring
potential collaboration opportunities with end-use customers to jointly promote
the light-weight development of the automotive industry.

 

Leverage Aluminium Alloy Formwork to Promote Ecological Construction


As ecological construction is
widely promoted in China, the Group has capitalised on the opportunities to
launch the aluminium alloy formwork. This year the Group has rolled out an
upgraded version with improved product quality and environmental performance. The
product has been continuously receiving positive market response and expanding its
customer base, making it the growth engine of the Group's business performance.

 

Spur the Light-weight Development of Transportation
with High Value-added Products


Further
fabrication business is one of the Group's major highlights in the first three
quarters. Riding on the development of light-weight transportation in China,
the Group has developed further fabricated products with high added-value including
large-sized parts for high-speed trains, parts for urban rail vehicles, as well
as body parts of buses and passenger cars.
With mature technology, extensive experience and
long-term trusted relationships with clients, the Group has
supplied
numerous light-weight solutions for a number of renowned automakers including Chery
New Energy, FAW Group and CH-Auto
Technology.
As a key supplier of CRRC, the Group supplies further fabricated aluminium
products for the "Fuxing EMU" high-speed trains which adopts all-aluminium
body.

 

Looking ahead, Mr.
Lu
said, "The government unswervingly supports the development of the
private sector. As one of the leading private enterprises in China, China
Zhongwang will stay committed to its core business. The Group will promote the
application of the ecological aluminium alloy with relentless technological
innovation, and facilitate light-weight development in both upstream and downstream
sectors, so as to contribute to the industrial upgrading in China."

 

About China
Zhongwang Holdings Limited

 

China Zhongwang is the second largest industrial
aluminium extruded products developer and manufacturer in the world and the
largest in Asia. The Group provides a myriad of quality fabricated aluminium
products and offers integrated light-weight solutions for such downstream
sectors and fields as ecological construction, transportation, machinery and
equipment and electric power engineering.

 

With shared resources, the Group's core businesses,
namely industrial aluminium extrusion, aluminium flat rolling and further
fabrication have achieved synergistic development. In 2017, the Group expanded
its business presence in the transportation sector by acquiring Aluminiumwerk
Unna AG., a leading aluminium extrusion manufacturer, and Silver Yachts Ltd., a
large-scale all-aluminium superyacht builder, tapping into the end-use
manufacturing in the marine sector as well. Having built excellent teams of
research and development, technology and design, the Group is able to provide
one-stop light-weight solutions covering independent design, manufacturing,
fabrication and after-sales services. Looking ahead to the future, the Group
will continue to promote the applications of high-end fabricated aluminium
products, aiming to offer light-weight solutions to the society so that people
can live a quality life with low energy consumption.

 

For further information on the Group, please
visit our official website at www.zhongwang.com.

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