HONG KONG, March 17, 2015 /PRNewswire/ --
Financial Highlights (For the 12 months ended 31 Dec)
| RMB Million |
2014 |
2013 |
Change |
| Revenue |
15,971 |
14,307 |
+11.6% |
| - China (as % of revenue) |
13,794 (86.4%) |
12,590 (88.0%) |
+9.6% |
| - Overseas (as % of revenue) |
2,177 (13.6%) |
1,717 (12.0%) |
+26.9% |
| Gross profit margin |
28.0% |
26.8% |
+1.2pct pts |
| Profit attributable to shareholders |
2,477 |
2,127 |
+16.5% |
| Total share capital (in million shares) |
7,069 |
5,406 |
+30.8% |
| Basic earnings per share (RMB) |
0.36 |
0.39 |
-7.7% |
| Full year dividend per share (HK$) |
0.16 |
0.13 |
+23.1% |
| Final year dividend per share (HK$) |
0.08 |
0.13 |
- 38.5% |
Operational Highlights
| Tonnes |
2014 |
2013 |
Change |
| Total sales volume |
744,802 |
653,077 |
+14.0% |
| - Industrial |
617,662 |
547,380 |
+12.8% |
| - Deep-processed |
63,359 |
53,301 |
+18.9% |
| - Construction |
63,781 |
52,396 |
+21.7% |
China Zhongwang Holdings Limited ("China Zhongwang" or "the Company", together with its subsidiaries "the Group", stock code: 01333), the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia, announced the audited annual results for the 12 months ended 31 December 2014 (the "year under review"). Sales volume and profit of the Group maintained steady growth during the year under review. Revenue and profit attributable to equity shareholders rose 11.6 % and 16.5% year-on-year respectively, to approximately RMB15.97 billion and RMB2.48 billion. Gross profit margin widened to 28.0%. Earnings per share was RMB0.36. The Board of Directors has recommended a final dividend of HK$0.08 (approximately RMB0.06) per share. Together with an interim dividend of HK$0.08 (approximately RMB0.06) per share for the six months ended 30 June 2014, the total dividend payout ratio for 2014 amounted to approximately 36.2%.
Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, "During the year under review, the aluminium processing industry was presented with favourable operating environment, due in part to the Chinese government's efforts in driving structural economic reforms and promoting industry upgrade, and the accelerating pace of the light-weight development in the global transportation sector. As China intensifies its efforts in reducing air pollution and raising the awareness of energy conservation, emission reduction and environmental protection, market demand for aluminium alloy products is expected to rise considerably. The Group achieved sustainable growth in line with the nation's development directions through multi-faceted progress in product research, equipment upgrading, market development and extension of the industry chain."
During the year under review, the sales volume of aluminium extrusion products increased by 14.0% year-on-year to approximately 745,000 tonnes. Driven by a rise in deep-processed product sales volume, export sales volume of the Group climbed by 35.3% to approximately 84,000 tonnes, with export sales revenue increasing by 26.9% to approximately RMB2.18 billion. New subsidiaries were set up in Japan and Germany to tap into relevant markets, laying a strong foundation for the Group's long-term development.
Industrial aluminium extrusion business -- leveraging technical and capacity advantages to drive high-end development
The Group continued to leverage its technical and capacity advantages in the manufacturing of sophisticated large-section industrial aluminium extrusion products, in its effort to drive the high-end development of its industrial extrusion business. These initiatives yielded stable growth in product sales and profitability. During the year under review, the volume and sales revenue of industrial aluminium extrusion products grew by 12.8% and 10.4% year-on-year to approximately 618,000 tonnes and RMB13.14 billion respectively. In addition to the 21 aluminium extrusion presses of 75MN or above that had been put into production, two large extrusion presses of 225MN, currently the largest extrusion power of its kind in the world, will be ready for installation in 2015. Once the equipment becomes operational, the Group's competitiveness in the production of high-precision large-section, and complex-section industrial aluminium extrusion products will be further strengthened.
Deep processing business -- researching and developing light-weight products to expand overseas markets
The Group spared no efforts in expanding both the domestic and overseas markets during the year under review. Sales volume of deep-processed products increased by 18.9% year-on-year to approximately 63,000 tonnes, with sales revenue climbing by 17.6% to approximately RMB1.73 billion.
The newly established product and process design team provided customized light-weight solutions for a number of downstream customers. Certain newly developed products had been delivered to customers for testing and inspection, with expectation of commercial orders for those products in the coming year. In addition, the Group accelerated the development of aluminium-intensive commercial vehicles and the related capacity building in order to embrace the rapid growth that will emerge in this market segment in China.
Aluminium flat rolling business – extending industry chain to capture market opportunities
The Group continued to actively advance the construction of the high value-added aluminium flat rolled product project. During the year under review, plant and infrastructure construction for the first production line of Phase 1 of the project was completed. Equipment installation and testing is now underway and trial operation will follow immediately. The first production line will primarily supply medium- to high-thickness aluminium alloy plates, which are extensively used in the transportation sector (including aviation and aerospace, vessels, commercial vehicles, special utility vehicles, railways and vehicles) and chemical vessels. The high-end aluminium flat rolled product project will complete the Group's industry chain and gradually reverse the current situation in China's high-end aluminium plate and sheet sector of prolonged reliance on imports due to serious lack of domestic capacity in the high-end segment.
R&D -- integrating research findings with market analysis to optimise high-end product mix
During the year under review, the Group continued to strengthen its internal R&D capabilities, broaden exchanges and cooperation with external institutions, and integrate fundamental research findings with market trend analysis to enhance its overall competitiveness. R&D investments in the year under review amounted to RMB510 million. The Group was granted more than 20 issued patents, won eight technology awards, and obtained the provincial and municipal authorities' approval for another seven technology projects. Recognized as a "high and new technology enterprise" for its outstanding research and development capabilities, the Group has enjoyed a 15% preferential corporate income tax rate.
Mr. Lu concluded, "China's continuous push for new urbanization plan, together with the implementation of 'high-speed rail diplomacy' and 'one belt, one road' strategy, will drive up China's demand for aluminium alloy products. Against the backdrop of these favourable development opportunities, the Group will spare no efforts in advancing the synergistic development of its three core businesses, namely industrial aluminium extrusion, deep processing and aluminium flat rolling. On top of that, we will also strengthen our fundamental research and development in alloy and processing technologies, improve the technology design capabilities for new products, promote downstream applications of aluminium alloys and accelerate the related capacity building to seize market opportunities and realize the Group's sustainable development."
About China Zhongwang Holdings Limited
China Zhongwang is the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia. It has, over the years, been focusing on the light-weight development of transportation, machinery and equipment and electric power engineering sectors through the provision of quality industrial aluminium extrusion products. It now has 93 internationally advanced aluminium extrusion production lines (including 21 production lines of large-scale aluminium extrusion presses of 75MN or above) with an aggregate annual production capacity of over 1 million tonnes.
In addition, to further leverage its existing strengths in the industry, the Group is developing the high value-added aluminium flat rolled product project. With a total designed annual production capacity of 3 million tonnes, the project is scheduled for development in two phases. Phase I of the project with a planned annual production capacity of 1.8 million tonnes consists of two production lines. Plant construction has been completed and equipment installation and testing is underway, to be followed closely by trial operation. This new business venture will not only enable the Group to further capitalize on its leading edge in aluminium alloy smelting and casting and product research and development, but also achieve synergies with its existing industrial aluminium extrusion and deep processing businesses by taking full advantage of their customer and market resources in related downstream application sectors.
For further information on the Group, please visit www.zhongwang.com
