Zhongwang's profit for the first three quarters soared by 24%

With the further development of aluminum alloy and aluminum processing technology, China Zhongwang (01333.HK), the world's second largest industrial aluminum extrusion product R&D manufacturer in the world, Asia and China, continued to improve its performance in the third quarter. The first three quarters of 2014 Net profit increased 24% to 1.95 billion yuan.

Lu Zhongqing, executive director and vice president of China Zhongwang, stated that the Group's various operating indicators achieved steady growth, thanks to the increase in the proportion of high-margin deep processing products, the expansion of overseas markets, and the expansion of business scale.

Zhongwang Group has successfully developed samples of high-value-added deep processing products with huge market potential, such as aluminum fire trucks, garbage trucks, semi-trailer trucks, tank trucks, rail car bodies, etc., which are mainly sold in overseas markets. The first three quarters of this year Sales of deep processing products increased by 22.7% over the same period of last year to approximately 1.38 billion yuan.

Its high-end aluminum rolling material production base in Tianjin Wuqing Auto Parts Industrial Park is on schedule. The first production line is expected to start production in the second half of 2015, and Zhongwang will formally enter the high-end aluminum rolled material field.

The continued profitability of aluminum processing companies is in stark contrast to the large-scale losses of electrolytic aluminum companies. According to data from the China Nonferrous Metals Industry Association, in the first three quarters of 2014, the structural adjustment of the aluminum industry was further advanced. However, the trend of smelting and processing industries became more and more significant. The aluminum smelting industry remained “cold”, and the operation of the aluminum rolling processing industry continued to pick up.

According to statistics from the association, from January to August 2014, China's aluminum smelting industry (including electrolytic aluminum, alumina, and recycled aluminum) completed a fixed asset investment of 35.5 billion yuan, a year-on-year decrease of 33.9%, and aluminum extrusion processing industry completed a fixed asset investment of 118.9 billion yuan. , a year-on-year increase of 24.1%. The overheating of smelting investment has eased, the investment structure of the aluminum industry is extending to the downstream, and the structural adjustment has been continuously optimized.

Lu Changqing believes that aluminum alloys have great potential for application, especially in the transportation and transportation industry's progress towards energy conservation, environmental protection and light weight. Aluminum alloy products, as the preferred material, will improve fuel economy, reduce greenhouse gas emissions, and reduce transportation costs. And play an increasingly important role in improving transport efficiency.