China Zhongwang Holdings Co., Ltd., the world's second largest and largest R & D manufacturer of industrial aluminum profiles in China and Asia (the "China Zhongwang" or the "company", together with its subsidiary "the group"), reported its unaudited results for the six months ended June 30, 2012 (the "review period"). In the first half of 2012, the group carried on the growth momentum of the second half of 2011, and its income and shareholders' profit increased by 60.9% and 152.0% respectively compared with the same period of last year to RMB 6.88 billion and RMB 1.04 billion. Rooted in the Chinese market, sales volume grew steadily

Lu Changqing, executive director and vice president of Zhongwang, said: "in the first half of 2012, Zhongwang group made encouraging achievements in product development, capacity expansion and market development. It has laid a solid foundation for the sustainable growth of aluminum industry in China

The group continued to expand and consolidate its customer base with large state-owned and central enterprises as its main customers. The sales volume from China market increased by 51.2% to RMB 6.33 billion compared with the same period last year. The sales volume of China market increased significantly, which increased the sales volume of aluminum profiles by 51.8% to 286110 tons during the review period, which has achieved more than half of the annual sales target of 500000 tons. Product diversification and deep processing business to strengthen core competitiveness

Through the development of deep processing technology, the group has achieved high-end export products, breaking through the "anti-dumping and countervailing" restrictions imposed by some overseas markets on China's aluminum profile imports. Therefore, during the review period, the sales volume of the group's export products has risen again, and the sales revenue has increased by 524.3% year-on-year to RMB 551 million.

"The added value of industrial aluminum profile products is high, and the gross profit margin is more significant than that of general industrial aluminum profile products, which helps the group to re open the door to the export market. After the newly built industrial aluminum profile deep processing center is fully put into operation in the second half of 2012, the group's competitive advantage will be more prominent. " Lu Changqing said. During the review period, the group continued to promote the aluminum rolling products project, and has purchased industrial land in Wuqing District of Tianjin to build the aluminum rolling products production base, and is now carrying out the preliminary infrastructure construction as planned. The group has ordered aluminum calendering production equipment from Germany and the United States to produce high-end aluminum sheet, strip and foil products, including medium and heavy plates. The main equipment will be delivered in phases from the end of 2013. In the next two years, the group will focus on the construction of the first phase of the project. The goal is to complete the construction and commissioning of production facilities with an annual design capacity of 1.8 million tons by the end of 2014, and implement the overall design capacity of 3 million tons in 2018.

In terms of technology and talent software, the group has recruited experienced technical talents to join in to speed up the technological reserve and R & D pace of aluminum calendering materials. With the group's technical advantages, talent reserves, customer resources and capital strength in the aluminum processing industry, the group is confident in the future development of this business. (source: CICC)