[20 April 2010, Hong Kong] Asia's and China's largest aluminum extrusion products manufacturer with a particular focus on the development of light-weight products for the transportation, machinery and equipment and power transmitter sectors, China Zhongwang Holdings Limited （“China Zhongwang” or the “Company”, together with its subsidiaries the “Group”, stock code: 1333） announced its annual results for the year ended 31 December 2009 （“year under review”）.
During the year under review, the Company continued to engage in the research and development, production and sale of industrial aluminum extrusion products of high added-value through continual capacity expansion, further leveraged its integrated advantages to strengthen its leading market position and capitalized opportunities in the China and overseas markets. Revenue of the Group rose 23.0% year-on-year to RMB13.85 billion. Gross profit and profit for the period surged 70.5% and 84.7% to RMB5.29 billion and RMB3.53 billion respectively. Meanwhile, gross profit margin of the Company improved considerably by 10.7 percentage points to 38.2% （2008:27.5%）， while net profit margin also increased by 8.5 percentage points to 25.5% （2008:17.0%）。 In view of the satisfactory results, the board of directors proposed payout ratio of 25% for final dividend （which amounts to HK$0.19 per share） to fulfill its commitment to shareholders at the time of the Company's listing that the dividend payout ratio would be not less than 25%. In addition, to reward shareholders' consistent support to the Company, the board of directors proposed a special dividend which is equivalent to a payout ratio of 10% （which amounts to HK$0.07 per share）。 Total dividend for the year therefore amounted to HK$0.26 per share and represented an aggregate payout of 35% of the Group's profit attributable to shareholders for the year.
Mr. Liu Zhongtian, Chairman and President of China Zhongwang, said, “The global economy in 2009 has gradually come out of the haze of the financial turmoil and achieved stable growth. In China, the strong economic growth has fuelled the consumption of aluminum extrusion products. Accordingly to a report by the Boston Consulting Group, with respect to downstream applications, the global consumption of industrial aluminum extrusion products has maintained stable growth over the past nine years. In China, it has been rising at a CAGR of approximately 25% per annum. Hence China has become a key factor propelling the growth of the global market. China Zhongwang seized opportunities during the year under review and increased its investments towards providing products for the transportation, machinery and equipment and power transmitter sectors and achieved its goal of being the leader in the industry.”
During the year under review, gross profit generated from industrial aluminum extrusion products accounted for 95% of the Group's total gross profit. In addition, both sales volume and average selling price of the Company's industrial aluminum extrusion products rose during the year under review. The sales volume of the industrial aluminum extrusion products increased by 84% from 201,484 tons in 2008 to 370,833 tons in the year under review, while its average selling price increased by 0.4% from RMB 30,895 per ton in 2008 to RMB 31,017 per ton for the year ended 31 December 2009. In line with the surging demand for industrial aluminum extrusion products and the Company's expanding client base and operational scale, China Zhongwang continued to increase its production capacity. For the year ended 31 December 2009, the Company had 66 aluminum extrusion presses, including a 125 MN oil-driven dual action extrusion press which is the largest of this kind in China and one of the most advanced extrusion presses in the world, allowing it to produce large-section industrial aluminum extrusion products with high precision.
The Company has been actively identifying acquisition opportunities to expand its production capacity and scale. On 9 February 2010, Liaoning Zhongwang Group Co., Ltd. （“Liaoning Zhongwang”）， a wholly-owned subsidiary of the Company, entered into a framework agreement with the shareholders of Qinghai Guoxin to acquire 100% equity interest in Qinghai Guoxin Aluminum Industry Incorporated Company. If the proposed acquisition could be completed in 2010 and the additional production lines are successfully installed at the same time, the Company will be able to accelerate its expansion plan and reach a production capacity of 800 kilotons per year by the end of 2010, which will further strength its global leading position in the industrial aluminum extrusion market.
In response to the surging overseas demand, the industrial aluminum export business of the Group has achieved a robust growth in 2009. Following the migration of the global aluminum extrusion industry to the PRC, the Chinese market will became the dominant driver of the global aluminum extrusion industry as well as continue to create business opportunities for the Group's exports of industrial aluminum extrusion products.
“China Zhongwang has become the world's second largest and Asia's and China's largest manufacturer of industrial aluminum extrusion products manufacturer. We are also the world's third largest manufacturer of aluminum extrusion products. We will continue to expand the business of industrial aluminum extrusion products used in the transportation, machinery equipment and power transmitter sectors. Leveraging our leading production capacity, strong R&D capabilities and extensive and diversified customer base, we endeavor to become the world's leading developer and manufacturer of industrial aluminum extrusion products while striving for the best possible returns for our shareholders.” Chairman Liu concluded.
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About China Zhongwang Holdings Limited
China Zhongwang is the largest aluminum extrusion products manufacturer in Asia and China, with a particular focus on the transportation, machinery and equipment and power transmitter sectors for its industrial aluminum extrusion products, and has strong research and development capabilities. According to the Boston Consulting Group, China Zhongwang was the world's third largest and Asia's and China's largest aluminum extrusion products manufacturer in terms of production capacity in 2009. The Company possesses 66 extrusion production lines, including a 125MN oil-driven dual action extrusion press which is currently the largest of its kind in China and the most advanced extrusion press in the world, which enable the Company to produce sizable, large-section and high-precision industrial aluminum extrusion products tailored to its customers. These products are widely used as components for end products of the transportation sector such as railway, metropolitan railway, aviation, vessels, automobiles and machinery equipments. By the end of 2009, the Company's production capacity reaches approximately 600,000 tons.
Issued by PR Department of China Zhongwang Holdings Limited.
For further information, please contact:
Mr. Cao JiweiTel: （010） 51282868-995 Email: caojiwei@zhongwang.com
Ms. Li BeibeiTel: （010） 51282868-971 Email: libeibei@zhongwang.com
Mr. Hu XiaoyuTel: （010） 51282868-918 Email: huxiaoyu@zhongwang.com
Fax: （010） 85239287
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