China Zhongwang Holdings Limited, a world-leading fabricated aluminium products developer and manufacturer, has announced its unaudited interim results for the first half of 2020 ended on June 30. The company’s total sales volume during the period stood approximately at 351,637 tonnes, with revenue amounting to RMB 8.66 billion (approx.). Profit was around RMB 530 million, while earnings per share RMB 0.07.
Mr. Lu Changqing, Chairman and President of China Zhongwang, said, "Major breakthroughs will be seen in the application of aluminium alloy products in areas that are significantly beneficial to the society as new infrastructure construction (the "new infrastructure") is being carried out gradually in the relevant fields, coupled with the acceleration of the industrialisation of aluminium fabrication. The Group will continue to leverage the synergistic advantages of its three core businesses and the first-mover advantages of its cutting-edge technologies and innovative products, so as to seize the opportunities for development. Meanwhile, the Group will further expand the application of aluminium alloy products in various fields, continuing to develop high-end new products to lead the development of the industry and create value for the society."
Aluminium Extrusion Business – In the first half of the year, Zhongwang’s aluminium extruded products sales volume and sales revenue decreased from the corresponding period last year, attributing to the disruptions caused by the COVID-19 pandemic to the production and operation of upstream suppliers and downstream consumers in Q1 2020. However, resuming the full operation in April with the effective control over the domestic epidemic, the Group gradually started its production and sales, with sales volume increased by nearly 20 per cent Q-o-Q in the second quarter. According to the report, revenue from leased aluminium alloy formwork rose significantly by approximately 442.8 per cent to approximately RMB 470 million.
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Aluminium Flat Rolled Business – Zhongwang’s production and sales of aluminium flat rolled products in Q1 remained sluggish due to the outbreak of the virus. However, the production and operation resumed in the second quarter, with improved production efficiency for the first production line and offering high-quality aluminium flat rolled products to the customs in the sectors of industrial materials, transportation, aviation, and aerospace. In terms of automotive sheets, the Group has become a Tier 1 aluminium sheet supplier for one of the European luxury automobile brands.
Further Fabrication Business – During the period under the review, the Group continued to maintain cooperative partnerships with leading domestic new energy vehicle manufacturers such as Chery, BYD and FAW to jointly develop projects of passenger cars, commercial vehicles and light-weight new energy vehicles. Besides, the Group remained committed to provide high-quality fabricated products of aluminium alloy and extruded materials to urban rail transit for the manufacture of rail bodies. In addition, Zhongwang also provided aluminium extruded materials for the whole train bodies of "Fuxing", a China Standard EMU train at a speed of 350 km/h and 250 km/h.
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Looking ahead, Mr. Lu Changqing said, "In the past six months, in the face of severe challenges posed by the pandemic, the Group has actively fulfilled its corporate social responsibility and donated money and supplies to the society. Meanwhile, we have implemented a range of infection prevention measures to limit transmission, constantly managing the risks that typified an unusual time. Last but not least, I would like to extend my gratitude to all employees, customers, suppliers and business partners for their support and trust. The Group will seize opportunities and create a new order in the challenging circumstances to lead the industry to a brighter future."
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