China Zhongwang 2013 Profit Rises 17.7% YoY on More Extrusions Demand

SHANGHAI, Mar. 28 (SMM) – China Zhongwang Holdings Ltd.’s net profit rose 17.7% from a year ago in 2013 as the leading aluminium extrusion producer focused on the domestic market and improved gross margins.

The company made a net profit of 2.13 billion yuan ($345 million) or 0.39 yuan per share last year, Zhongwang told Hong Kong Stock Exchange on Thursday.

``Driven by demand from the Chinese market'', global consumption of aluminium extrusion products increased by 7.8% year-on-year in 2013 to approximately 22.45 million tonnes, Zhongwang said in its financial report. Chinese consumption of the products rose by 11.2% to over 12.56 million tonnes in the period, it cited industry statistics as saying.

Its total sales volume of aluminium extrusions amounted to 653,077 tonnes in 2013, an increase of 17.5% from a year ago, with a significant growth in deep-processed product sales volume of 91.1% to 53,301 tonnes, it said.

``There is enormous room for development in high value-added products for the Chinese aluminium extrusion industry, especially in the transportation sector underpinned by energy conservation, emission reduction and light-weight development, where the gap between China and developed markets such as Europe and America is even greater,’’ it said.

Zhongwang expects China’s total demand for aluminium extrusion products to increase by 9% year-on-year to 15.25 million tonnes this year, with industrial products demand to reach 5.2 million tonnes, representing a year-on-year growth of 11%.

The company improved gross margins for its extrusion products to 26.8% in the period from 25.1% in 2012, offsetting declines in aluminium ingot prices, it said.