Gross profit margin expands to 28.4%
Sales volume rises 7.2% to 141,000 tonnes
HONG KONG, April 22, 2013 /PRNewswire/ --
Financial Highlights
| RMB Million | For the three months ended 31 March | Change | |
| 2013 | 2012 | ||
| Revenue - China (as a % of revenue) - Overseas (as a % of revenue) |
3,203 2,836 (88.5%) 367 (11.5%) |
3,243 2,950 (91.0%) 293 (9.0%) |
-1.2% -3.9% +25.4% |
| Gross profit | 911 | 838 | +8.7% |
| Gross profit margin (%) | 28.4% | 25.8% | 2.6ppts |
| Net Profit | 495 | 491 | + 0.8% |
Sales Highlights
| 2013 | 2012 | Change | |
| Sales Volume (tonnes) - Industrial - Deep processing - Construction |
141,013 124,638 11,261 5,114 |
131,485 120,517 5,495 5,473 |
+7.2% +3.4% +104.9% - 6.6% |
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, today announced unaudited consolidated results for the quarter ended 31 March 2013 (the "review period"). The Group reported quarterly revenue and net profit of RMB3.2 billion and RMB495 million respectively, flat versus the same period of last year. Effective cost control and management measures yielded a 2.6 percentage-point increase in gross profit margin, to 28.4% for the review period. Sales volume of aluminium extrusion products was 141,000 tonnes, an increase of 7.2% year-on-year, as the Group continued to expand its customer base in both domestic and overseas markets.
"The Group continues to ramp up its production capacity of high-end, large cross-section products and increases its investment in product research and development. We are confident of further expanding our customer base to achieve the annual sales target of 650,000 tonnes in 2013," said Lu Changqing, executive director and vice president of China Zhongwang. "In addition, the new industrial aluminium extrusion deep-processing centre gradually commenced operation last year and is expected to further enhance our product mix and increase export sales," he added.
Sales from the China market for the first quarter of 2013 amounted to RMB2.84 billion, accounting for 88.5% of the Group's total revenue (2012Q1: RMB2.95 billion and 91.0%). As the operating scale of the deep processing centre increases, sales of high value-added deep-processed products, which allowed the Group to access to overseas markets, jumped 104.9% to 11,000 tonnes. Revenue from overseas markets therefore climbed 25.4% to RMB370 million. Its share of the Group's revenue rose to 11.5%.
The Group's production base for aluminium flat rolled products located in Tianjin is under construction in full gear. The Group will roll out phase-one of the project with production capacity of 1.8 million tonnes of flat rolled products by 2015 and realize the full capacity of 3 million tonnes by 2018. This will form a new long-term growth driver for the Group.
"High-end, high value-added aluminium processed products remain the material of choice in China's urbanization process, and industrial upgrade in railway transportation, machine equipment and new energy industries. The Chinese Government has been advancing policies to support and broaden aluminium applications. Among them are encouraging 'aluminium in lieu of steel' in transportation sector and 'aluminium in lieu of copper' in electric power engineering sector with a view to conserving energy and reducing emissions. We will continue to expand our presence in the industry chain to high-end and high value-added aluminium processed products to capture opportunities from China's growing needs for aluminium processed products, powering the Group with sustainable growth engine and bringing returns to shareholders," Lu concluded.
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 and China. 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 globally advanced extrusion production lines (including 8 aluminium extrusion production lines of 75MN or above under installation), among which the 125MN oil-driven dual action extrusion press is currently one of the largest and most advanced of its kind in the world. These facilities enable the Company to produce large-section and high precision industrial aluminium extrusion products tailored to its customers' needs. These products are widely used in the transportation sector such as railway passenger compartments and cargo carriages, metropolitan subway and light rail, automobiles, heavy trucks, vessels, aviation, aerospace, etc., and equipment and machinery and electric power engineering sectors. In addition, to further leverage its existing strengths in the industry, the Group is developing the high value-added aluminium flat rolled product business. Infrastructure construction and equipment installation for phase I of the project with a planned annual production capacity of 1.8 million tonnes are scheduled for completion and commence production in 2015, while the overall planned annual production capacity of 3 million tonnes will be realized in 2018, by which time the Group will have initially achieved the aim of tapping the high value-end aluminium flat rolled product sector to become its third complementary and synergistic core business segment alongside the existing industrial aluminium extrusion product and deep-processed product businesses.
For further information on the Group, please visit www.zhongwang.com.
