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Jumat, 01 November 2019 17:12:00

China Zhongwang's Revenue Increases by 14% to RMB18.7 Billion in the First Nine Months of 2019

HONG KONG, - 31 October 2019 - China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", stock code: 01333), a world-leading fabricated aluminium products developer and manufacturer, announced its unaudited consolidated results for the nine months ended 30 September 2019 ("the Period under Review").

During the Period under Review, the production efficiency of aluminium extrusion products and aluminium flat rolling products continued to rise, propelling the Group's sales volume to increase by 32.5% to 760,000 tonnes. The total revenue grew 14.0% to RMB18.7 billion. Gross profit was up by 3.0% to RMB5.42 billion, with a gross profit margin of 29.1%. Net profit was RMB2.22 billion.
 
Mr. Lu Changqing, Chairman and President of China Zhongwang, said, "To support the sustainable development of the Group's businesses, we have been exploring the feasibility of various business models for the last few years. In mid 2019, the Group commenced the leasing business of aluminium alloy formwork, which provided the Group with direct access to the end market and promoted light-weight solutions for green construction . At the same time, the production capacity of the aluminium flat rolling business continued to expand, constantly driving up the production efficiency to bring positive impact to the Group's sales volume."
 
Boosted Promotion of Aluminium Alloy Formwork Leasing Business
During the Period under Review, the Group persisted in promoting the leasing business of aluminium alloy formwork. Compared with the aluminium alloy formwork sales business, the aluminium alloy formwork leasing business has a higher gross profit margin and profit margin.

In the medium and long term, the leasing of aluminium alloy formwork can create a recurring income source and contribute to a higher profit. After a few months of operation, the Group has gained a deeper understanding of the key factors in the execution and has made improvements in various stages, including production, assembly, transportation, warehousing, application, maintenance, and retrieval process.

The aim was to raise the efficiency and leverage the advantage of the leasing model. In addition, the Group's capability to produce a comprehensive range of aluminium formwork that includes supporting components and connectors has been developing according to schedule.

By unlocking the potential of aluminium formwork's applied usage, it can become the long-term growth engine for the Group.(roc/red/*) #for information on collaboration publications, questions and other e-mails riauonemedia@gmail.com
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