China Zhongwang
 | |
| Type | Hong Kong Listed Company |
|---|---|
| Industry | Aluminium Processing |
| Founded | 1993 |
| Headquarters | Liaoyang, Liaoning, People's Republic of China |
| Area served | People's Republic of China |
| Key people | Chairman: Mr. Liu Zhongtian |
| Website | China Zhongwang Holdings Limited |
China Zhongwang Holdings Limited (Chinese: 中國忠旺控股有限公司) (SEHK: 01333) is the second largest industrial aluminium extrusion product developer and manufacturer in the world[citation needed] and the biggest one in Asia and China. The group is headquartered in Liaoning province, China. [1]
Principle Business
China Zhongwang is principally engaged in the production of high precision, large-section and high value-added industrial aluminium extrusion products which are widely used in transportation (including railway passenger compartments and cargo carriages, metropolitan subway and light rail, automobiles, heavy trucks, vessels, aviation and aerospace) machinery and equipment and electric power engineering sectors. In addition, the Group is developing industrial aluminium deep-processing technologies and actively extending its reach to the high-end aluminium flat rolled product business to fulfill its mission of becoming the world’s top comprehensive developer and manufacturer of high-end processed aluminium products.
History and Scale
Since its founding in 1993, the Group owned 93 leading aluminium extrusion production lines (including 14 production lines with large extrusion presses of 75MN or above under installation), including a 125MN oil-driven dual action aluminium extrusion press which is one of the largest and the most advanced presses of its kind in China and the world. The Group has built world leading aluminium tilt smelting and casting equipment in the industry, as well as the largest customized industrial aluminium extrusion product die design and manufacturing centre in Asia. As at 30 June 2012, the Group’s annual production capacity was over 80 tonnes. The close coordination among the processes, namely product development, smelting and casting, die and extrusion, and the advanced technologies applied is the Group’s important source of competitiveness and outstanding features.
Founder and Directors
| Name | Title |
|---|---|
| Mr. Liu Zhongtian | Founder, Chairman, President and Executive Director |
| Mr. Lu Changqing | Vice President, Executive Director and Joint Company Secretary |
| Mr. Chen Yan | Vice President and Executive Director |
| Ms. Zhong Hong | Vice President and Executive Director |
| Mr. Gou Xihui | Vice President and Executive Director |
| Mr. Wong Chun Wa | Independent Non-executive Director |
| Mr. Wen Xianjun | Independent Non-executive Director |
| Mr. Shi Ketong | Independent Non-executive Director |
| Mr. Lo Wa Kei, Roy | Independent Non-executive Director |
| Mr. Cheung Lap Kei, Vincent | Chief Financial Officer and Joint Company Secretary |
Financial Performance
For the six months ended 30 June 2012, building on the growth momentum since the second half of 2011, the Group’s revenue and profit attributable to shareholders for the review period surged 60.9% and 152.0% year-on-year, to approximately RMB6.88 billion and RMB1.04 billion, respectively.
The rise in sales of high-margin deep-processed products during the review period also contributed to improvements in gross margin, which expanded by 2.8 percentage points to 23.4% in the first half of 2012. Driven by strong sales growth in China, the Group’s revenue jumped 51.2% year-on-year to RMB 6.33 billion, while sales volume of aluminium extrusion products rose 51.8% to 286,110 tonnes, achieving more than 50% of the Group’s annual sales target of 500,000 tonnes. [2]
RESULTS
| Year ended 31 December (in RMB'000) | 2011 | 2010 | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|
| Revenue | 10,305,694 | 10,521,948 | 13,852,708 | 11,264,429 | 7,521,266 |
| Profit for the year attributable to owners of the Company | 1,105,027 | 2,595,867 | 3,528,815 | 1,910,438 | 852,158 |
ASSETS AND LIABILITIES
| As at 31 December (in RMB'000) | 2011 | 2010 | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|
| Total assets | 27,774,599 | 24,639,885 | 24,423,450 | 12,861,075 | 11,012,758 |
| Total Liabilities | 12,097,070 | 9,066,279 | 10,247,677 | 9,655,999 | 7,718,120 |
| Total equity attributable to owners of the Company | 15,677,529 | 15,573,606 | 14,175,773 | 3,205,076 | 3,294,638 |
Products and plants
Industrial aluminium extrusion products, deep-processing of industrial aluminium extrusion products and aluminium flat-rolled products are the three core businesses of the company. China Zhongwang adopted an integrated business model to strengthen its core competency:
Die design and manufacturing
- One of the largest design and manufacturing centers for special industrial aluminium extrusion products in Asia
- In-house die design and production enable the company to cooperate with key customers to produce customized aluminium extrusion products and shorten production cycle
Alloy smelting and casting
- One of the world’s leading aluminium smelting and casting facilities, providing customized products with required alloy formula
- In-house alloy smelting and casting facilities are prerequisites for producing high-end industrial aluminium extrusion products
Large advanced extrusion equipment
- Core equipment imported mainly from Europe, which enables the company to produce large-section aluminium extrusion products on a large scale
Product development
- Developing and manufacturing high value added aluminium extrusion products for industrial customers.
- Gradually expanding to downstream deep processing areas
Listing
China Zhongwang was listed on the Hong Kong Stock Exchange in May 2009 with its IPO price of HK$7.0 per share.[3] It was the world's largest IPO in that year and raised the capital of US$1.26 billion.[4][5]
Special Announcement
In October 2011, China Zhongwang announced major transactions in relation to the development of the synergistic aluminium flat rolled product business. The Group kick-started the development of the project as per its plan and entered into a total of six equipment purchase agreements with three independent third party suppliers via two wholly owned subsidiaries. According to the agreements, the Group will invest approx. USD3.8 billion (approx. HKD29.5 billion) in total payable in four instalments between 2011 and 2014 for the purchase of hot continuous rolling mills and cold rolling mills for the production of medium-to-high thickness plate and sheet products, smelting and casting lines, quenching furnaces and heat treatment furnaces for the ancillary production of medium-to-high thickness plate and sheet products, and aluminium foil rolling mills, amongst others, for Phase 1 development of the aluminium flat rolled manufacturing base which will have an annual production capacity of 1.8 million tonnes.
And in November 2011, through Panjin Zhongwang Aluminium Co., Ltd., a wholly owned subsidiary of the Company, China Zhongwang won the bid for the usage right of two pieces of land in Panjin City, Liaoning Province through public auction at a total consideration of RMB643 million. The Land will be used for the construction of the new facility for the manufacturing of aluminium flat-rolled products in Panjin City.[citation needed]
