Profit for Period Surges 49% to RMB 2.4 Billion
Strong Growth of Industrial Aluminum Extrusion Products
Gross Profit Margins Increases Significantly to 38.5%
HONG KONG, Nov. 10 /PRNewswire-Asia/ --
Financial Highlights
For the nine months ended 30 September
2009 2008 Change
RMB '000 RMB '000
Turnover 9,642,218 8,951,284 +7.7%
Gross Profit 3,713,885 2,519,243 +47.4%
Gross Profit Margin(%) 38.5% 28.1% +10.4 pts
Profit for the Period* 2,395,313 1,611,329 +48.7%
Net Profit Margin(%) 24.8% 18% +6.8 pts
*Excluding the effect of the one-off listing expense of approximately RMB36,558,000, the Company's actual profits were approximately RMB2.43 billion.
The largest industrial aluminum extrusion products developer and manufacturer in Asia and China, with a particular focus on the transportation, machinery equipment and infrastructure sectors - China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", stock code: 1333) - announced its January to September (first nine months) results for the period ended 30 September 2009.
For the nine months ended 30 September 2009, the Company recorded a turnover of approximately RMB9.64 billion, representing a growth of 7.7% over last year. Gross profit and profit for the period surged by 47.4% and 48.7% to RMB3.71 billion and RMB2.4 billion respectively. It is noteworthy that the gross profit margin of the Company improved by an impressive 10.4 percentage points to 38.5% (2008:28.1%), while its net profit margin also increased 6.8 percentage points to 24.8% (2008:18%).
Commenting on the satisfactory results, Mr. Liu Zhongtian, Chairman and President of China Zhongwang, said, "The successful listing and trading of the shares of China Zhongwang in Hong Kong not only strengthened our capital base and established a platform for the Company to tap funds for future opportunities, but it also enhanced the international reputation of the Company, and thereby stimulating oversea orders."
The increase in revenue was mainly attributable to the growing market demand for the Group's industrial aluminum extrusion products used in the transportation, machinery equipment and infrastructure sectors. As such, revenue of the Group's industrial aluminum extrusion products increased significantly as a result of increased processing fees charged to our customers by the Company.
For the first three quarters of 2009, revenue generated from the industrial aluminum products accounted for approximately 79.3% of the total. In addition, the gross profit margin of the Group's industrial aluminum extrusion products increased to 45.1% for the period ended 30 September 2009 from 39.1% for the corresponding period in 2008, mainly because some of the Group's large aluminum extrusion presses commenced production in 2008. The commencement of production allowed China Zhongwang to produce large-section, high-precision aluminum extrusion products, which enhanced the product competitiveness in the market and resulted in increased market demand for the Company's industrial aluminum extrusion products.
China has been the major market for the products of the Group. Nevertheless, overseas orders have also been increasing owing to the Group's increased investments in the field of industrial aluminum extrusion, and coupled with our efforts in the research of medium to high-end industrial aluminum extrusion products for international market and expanding our customer base in recent years, especially upon the commencement of commercial operation of the 125MN oil-driven dual action extrusion press in early 2009. In addition, the enhanced international reputation of the Company upon the listing of its shares on the main board of the Stock Exchange of Hong Kong Limited and the increasing demands from overseas customers resulted in a rise in the Group's export sales from 12,878 tons for the period ended 30 September 2008 to 93,438 tons for the period ended 30 September 2009. Overseas customers of the Group are mainly located in the United States and Australia.
"China Zhongwang will continue to expand the business of industrial aluminum extrusion products used in the transportation, machinery equipment and infrastructure sectors, focus our market strategy driven by profitability and keep on expanding international market. Leveraging on our leading production capacity, strong R&D capabilities and extensive and diversified customer base, our Company will strive to become the world's leading developer and manufacturer of industrial aluminum extrusion products and bring attractive return to shareholders." Chairman Liu concluded.
About China Zhongwang Holdings Limited
China Zhongwang was listed on the Stock Exchange of Hong Kong Limited on 8 May 2009 and it is the largest aluminum extrusion products manufacturer in Asia and China, with a particular focus on the transportation, machinery and equipment and infrastructure sectors for its industrial aluminum extrusion products, and has strong research and development capabilities. According to CRU Strategies Limited (CRU), 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 2007. The Company possesses 64 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 plain, 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. The Company has been appointed by the Ministry of Railway as one of a few qualified suppliers for manufacturing carriages of wagon and passenger trains and subway conductor rail. By the end of 2008, the Company's designated production capacity and production volume reach over 535,000 tons and 419,000 tons respectively.
For further information, please contact:
Porda International (Finance) PR Group
Ms. Harriet Lau
Tel: +852-3150-6761
Email: harriet.lau@pordafinance.com.hk
Ms. Alman Loong
Tel: +852-3150-6731
Email: alman.loong@pordafinance.com.hk
Ms. Ada Leung
Tel: +852-3150-6732
Email: ada.leung@pordafinance.com.hk
Fax: +852-3150-6728
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