Article from: China Nonferrous Metals Newspaper

Zhongwang of China (01333) announced its audited annual performance for 12 months up to December 31, 2014 ("retrospective year"). The sales volume and profits of the group have maintained steady growth. The profit of the group should be increased by 11.6% and 16.5% annually to about 15.97 billion yuan and 2.48 billion yuan respectively, and the gross profit rate should be increased to 28.0%. The basic earnings per share were 0.36 yuan. The board of Directors recommended that the final dividend be paid to shareholders at HK$0.08 per share (equivalent to RMB 0.06), together with the interim dividend at HK$0.08 per share (about RMB 0.06), with a total dividend rate of 36.2% for the whole year of 2014.

Mr. Lu Changqing, Executive Director and Vice President of Zhongwang, China, said: "The Chinese government has actively promoted the structural reform of the economic model, advocated industrial upgrading, and accelerated the pace of lightening in the global transportation sector, which has created a favorable business environment for the aluminum processing industry. In addition, China has stepped up efforts to control air pollution, continuously improve awareness of energy conservation, emission reduction and environmental protection, and the market demand for aluminium alloy products has increased simultaneously. We conform to the national development orientation, in product development, equipment upgrading, market development and industrial extension and other aspects of development, so that enterprises can continue to grow.

Summarizing the whole year, the sales of aluminium extrusion products increased by 14.0% to about 745,000 tons annually. Driven by the growth in sales of deep-processed products, the group's export sales increased by 35.3% to about 84,000 tons annually, and its export sales revenue increased by 26.9% to about 2.18 billion yuan annually. In order to expand the export market outside the United States, the Group established new subsidiaries in Japan and Germany during the year, focusing on developing the aluminum market in the relevant countries.

Industrial Aluminum Extrusion Business - Bringing Technology and Capacity Advantage into Full Play to Promote High-end Development

The Group continues to give full play to the technological and capacity advantages of complex large section industrial aluminium extrusion products, promote the further development of industrial aluminium extrusion business to high-end, and maintain stable growth in sales and profit levels of products. At present, in addition to 21 large-scale extruders with 75MN or more that have been put into operation, two 225MN large-scale extruders with the largest global extrusion force will be installed and tested successively in 2015 as planned. Once these two machines are put into operation, Zhongwang will further enhance its competitive advantage in the production of high-precision large-section and complex-section industrial aluminium extrusion products.

Deep Processing Business - Developing Lightweight Products and Widening Overseas Market

In 2014, the Group actively exploited overseas markets and intensified its efforts to develop domestic deep processing market. The sales volume of deep processing products increased by 18.9% to 63,000 tons annually, and the sales volume increased by 17.6% to about RMB 1.73 billion yuan. The group's newly established product and process design team provides tailor-made lightweight solutions for many downstream customers. Some newly developed products have been tested and verified, and are expected to be converted into commercial orders in the coming year. In addition, the group has also accelerated the development of aluminum commercial vehicles and capacity building to meet the rapid growth of China's aluminum commercial vehicle market.

Aluminum Calendering Business - Improving Aluminum Processing Industry Chain and Grasping Market Opportunities

Zhongwang, China, has continued to actively promote the construction of the high value-added aluminium calendering material project in Tianjin. It has basically completed the construction of plant and infrastructure of the first production line in the first phase. It is currently installing and debugging machinery and equipment, and will immediately carry out trial production. Article 1 The production line mainly produces aluminium alloy medium and thick plates, including transportation plates and plates for chemical containers used in the fields of aerospace, ships, commercial vehicles, special vehicles and rail vehicles. The completion and commissioning of the project will improve the group's aluminum processing industry chain, and gradually reverse the serious shortage of domestic high-end aluminum sheet and strip commercial capacity, long-term dependence on imports of related demand.

Technology Research and Development - Combining Research and Market to Create Diversified High-end Products

The Group continues to strengthen its internal R&D strength, expand foreign exchanges and cooperation, combine basic research with market trends, and effectively enhance the overall competitiveness of enterprises. The R&D expenditure of the Group is RMB 510 million, and it has won more than 20 authorized patents, eight science and technology awards and seven provincial and municipal science and technology projects. Excellent R&D capability makes the Group continue to be a "high-tech enterprise" with a preferential tax rate of 15% on enterprise income tax.

Mr. Lu Changqing concluded: "the continuous promotion of new urbanization planning by the state, plus the development of" high-speed rail diplomacy "and" one belt and one way "will further drive China's demand for aluminum alloy products. With this opportunity, we will make every effort to promote the coordinated development of three core business of industrial aluminium extrusion, deep processing and aluminium calendering, strengthen the basic research and development ability of alloy technology and processing technology, improve the process design ability of new products, promote the downstream application of aluminium alloys, and speed up the capacity construction of related businesses in order to seize the market opportunity and realize the sustainable development of enterprises. "

About China Zhongwang Holding Co., Ltd.

The Group is the second largest manufacturer of industrial aluminium extrusion products in the world and the largest manufacturer of industrial aluminium extrusion products in Asia. At present, the Group has 93 world-leading aluminium extrusion production lines (including 21 large-scale aluminium extrusion production lines of 75MN and above), with an annual capacity of more than 1 million tons.

At the same time, in order to give full play to the existing industrial advantages of the group, the group is expanding high value-added aluminium calendering project. The total design capacity of the project is 3 million tons, which is planned to be carried out in two phases. The design capacity of the first phase is 1.8 million tons per year. There are two aluminium calendering production lines. At present, the factory building of the first production line has been completed. The installation and commissioning of machinery and equipment are under way, and trial production is about to be carried out. The new project not only enables the group to take advantage of its advantages in aluminium alloy casting and product research and development, but also enables it to share customers and market resources with the group's original industrial aluminium extrusion business and deep processing business, becoming the three core businesses of complementary and coordinated development.