Zhong Wang Plans to Withdraw from Building Aluminum Profile Market

One senior official of Liaoning Zhong Wang Aluminum Co., Ltd indicated that, in the future Zhong Wang would focus its work on expanding the production scale of industrial aluminum profile, whereas for the building aluminum profile business with which it started out its business, Zhong Wang would withdraw completely in 2011.

According to the third quarter performance report published by Zhong Wang, the business income of the Company in the first three quarters was about 9.64 billion yuan, up by 7.7% on YoY basis; its net profit grew by 48.6% on YoY basis to 2.39 billion yuan.

It has been learned that, the high income and the profit growth came from aluminum profile especially industrial aluminum profile. Zhong Wang’s gross profit margin has risen from 28.1% in the same period last year to 38.5%; its net profit margin has also risen from 18% to 24.8%. Wherein, the gross profit margin of in-dustrial aluminum profile products has risen from 39.1% of the same period last year to 45.1% this year. This is the key reason that Zhong Wang will make a complete shift to focus on industrial aluminum profile.

The Company plans to increase 100,000 tons of newly added production capacity in next year and the year after the next year respectively, by the end of 2011 its production capacity will reach 800,000 tons, during this period each year its capital expenditure will reach RMB 3 billion. The Vice President of China Zhong Wang indicated that, the Company in the future would focus on developing industrial aluminum profile products which has higher profit margin, it plans to become a 100% industrial aluminum profile manufacturer in 2011. By the end of September, 93% of the gross profit of this company comes from industrial aluminum profile. At present, China Zhong Wang has reached a production capacity of 600,000 tons;in the first half of the year its capacity utilization rate is 86%, which is higher than average level of the industry namely 50%.