Business / Companies

Zhongwang Q1 net profit rises 15.9%

By Du Juan ( Updated: 2015-04-22 17:31

China Zhongwang Holdings Limited, the world's second-largest industrial aluminium extrusion product manufacturer, saw a 15.9 percent rise in profit in the first quarter to 580 million yuan ($93.61 million), the company said on Wednesday.

Amid low commodities prices, the company's quarterly revenue remained flat at approximately 3.59 billion yuan, benefiting from the increasing share of high-end aluminium extrusion products in its product mix.

Lu Changqing, vice-president of Zhongwang, said the company will focus on high-end products to raise profitability and seize market opportunities brought by light-weight development in the global transportation sector.

In view of the accelerating pace of light-weight development in the global transportation sector, industrial aluminium alloy products have been widely applied in various types of vehicle structures and parts.

Lu said the company has continued to step up its research and development in high-end aluminium extrusion and deep-processed products in a drive to increase the share of high-end products in its product mix, resulting in enhanced profitability of the group.

The Chinese government has been aggressively pushing forward the "high-speed railway diplomacy" and the "Belt and Road Initiative", leading to increasing demand for high-end industrial aluminum products from both within and outside China.

After five years in preparation, the first production line of Tianjin Zhongwang Aluminium Co Ltd and the advanced aluminium plate production line will commence official operation by the end of 2015.

"An accurate prognosis of the market trends has placed China Zhongwang in a more advantageous position to capture the ever increasing vast demand," Lu said.

Looking into 2015, the company said the "Belt and Road Initiative" will create unprecedented opportunities for its development.

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