Aluminium product producer China Zhongwang lifts profit 18.6pc

PUBLISHED : Friday, 15 August, 2014, 1:27pm
UPDATED : Friday, 15 August, 2014, 1:27pm

Aluminium product producer China Zhongwang has boosted net profit 18.6 per cent to 1.27 billion yuan (HK$1.6 billion) for the first half from a year earlier.

Aluminium extrusion accounted for 99.9 per cent of Zhongwang’s revenue, the Hong Kong-listed company said on Friday morning. Most of its revenue, which grew 13.2 per cent to 7.95 billion yuan for the six months, came from Chinese sales. About 15.1 per cent of its revenue was booked from overseas sales; this contribution surged 41 per cent year on year to 1.2 billion yuan, of which 1.13 billion yuan came from the United States.

Demand for aluminium extrusion products in China this year would likely exceed 15 million tonnes, a year-on-year increase of about 9 per cent, Zhongwang said in a statement to the Hong Kong stock exchange.

The company will pay an interim dividend of 6 fen per share for the first half; no dividend was paid for the same period last year.

Boston Consulting Group predicts the Chinese market for aluminium flat-rolled products will grow from 7.6 million tonnes in 2011 to 16 million tonnes in 2020, accounting for half the world’s consumption and becoming the driving force for growth in the global flat-rolled product market.