Zhongwang, China, net profit of 540 million yuan in the first quarter of 2018

    Performance summary:
    
    Earnings rose 14.8% from the same period last year to 3.56 billion yuan.

    Gross profit was RMB 1.09 billion yuan, an increase of 10.2% over the same period last year, and gross interest rate was 30.6%.

    Net profit was RMB 540 million yuan, an increase of 4.5% over the same period last year.

    The Group was awarded the honor of "Manufacturing Champion Demonstration Enterprise" by the Ministry of Industry and Information Technology, and established the leading position in the industry.

    (Hong Kong, April 27, 2018) - China Zhongwang Holdings Limited ("Zhongwang China" or "Company", together with its subsidiary company "Group"; Stock code: 01333), the world's leading research and development manufacturer of aluminium processing products, announced its unaudited comprehensive performance for the three months ending March 31, 2018 ("Review Period"). In the retrospective period, total revenue rose by 14.8% annually to RMB 3.56 billion yuan. Overall gross profit increased by 10.2% to RMB 1.09 billion yuan annually, and net profit increased by 45% to RMB 540 million yuan annually.

    Mr. Lu Changqing, Chairman and President of Zhongwang, China, said: "China's aluminium consumption structure is constantly upgrading, and the proportion of high-end applications is gradually increasing. The group seizes the opportunity, relying on excellent design ability and production technology, devotes itself to developing high value-added products, providing customers with one-stop lightweight solutions covering design, production and after-sales, and promoting the group to achieve ideal performance.

    Grasp the First Opportunity and Promote the Comprehensive Solution of Lightweight

    Focusing on the opportunity of lightweight development, the Group has laid out its R&D and production capacity in advance and continuously explored new applications of aluminium materials in various high-end industrial fields. The aluminium alloy formwork system independently developed and designed by the Group takes into account the characteristics of the domestic and foreign construction industry, combines professional technical team, first-class large-scale equipment and exquisite production technology, and leads the market in product quality, which is continuously welcomed by customers and enhances market share. In addition, the Group has actively deployed in the field of new energy vehicles and rail transit, successfully developed various kinds of aluminum components that meet industry standards, and continuously strengthened cooperation with customers in the terminal areas of automobiles, buses, rail vehicles and so on.

    Intensive cultivation and intensive cultivation to highlight the industry's leading position

    Recently, the Ministry of Industry and Information Technology of China and the China Federation of Industrial Economics have issued the second batch of "list of single champion enterprises and single champion products in manufacturing industry". Zhongwang Group has won the "demonstration enterprise of single champion in manufacturing industry" by virtue of its comprehensive strength accumulated over the years in the field of deep cultivation of aluminium extrusion materials, which demonstrates the group's good brand influence and market awareness.

    Perfecting Industrial Chain Layout and Creating New Flagship of Aluminum Processing

    In order to meet the increasingly high-end market demand, the Group actively promotes the construction of Tianjin high value-added aluminium calender project. The project is the largest and most advanced aluminium calendering material production base in the world. The first production line was put into operation in the second half of 2007. In the initial stage of commissioning, we mainly produce high quality standard products. Our customers cover industries, transportation, special vehicles and other fields. At present, the project has successfully passed a series of international authoritative product certification and obtained authoritative passes for entering the international market of automobiles, ships, rail transit and aviation. The second production line has been installed and is being debugged. After completion, the project will become a new flagship of the aluminium processing industry in China and even in the world.

    Looking forward to the future, Mr. Lu Changqing added: "With the implementation of Made in China 2025, the national policy has accelerated the construction of a manufacturing power. The emphasis on lightweight development has provided a tremendous growth impetus for the high-end aluminum processing industry. We will further invest in R&D and innovation, constantly enrich high-end product categories, improve quality with experience, and create infinite possibilities of aluminum application with intelligence.