On March 23, China Zhongwang Holdings Limited (hereinafter referred to as "Zhongwang of China", together with its subsidiary company "Group"; stock code: 01333) issued its annual report for 2017. As of December 31, 2017, Zhongwang of China had realized a revenue of RMB 19.46 billion yuan and a profit of RMB 3.87 billion yuan.

    Zhongwang Annual Report of China shows that the company has realized double-rise in revenue and profits, thanks to the continuous optimization of product structure. Among them, high value-added products aluminum alloy template performance is strong, driving the average unit price of the company's products to rise. At the same time, the performance of deep processing business is remarkable. Zhongwang of China has successfully developed large aluminium components that meet the standards of transportation industry to supply automobiles, buses, rail vehicles and other markets. Sales and types of such products are on the rise. In addition, China Zhongwang successfully completed two international mergers and acquisitions last year. Its business is highly complementary to the company's existing business, which enables it to expand and deploy in the terminal area and add vitality to its long-term sustainable development.

    Lu Changqing, chairman and President of Zhongwang, China, said: "In China, new applications of aluminium materials emerge in endlessly, especially in high-end areas such as green construction, transportation, machinery and equipment. In order to further consolidate the comprehensive strength of high-end aluminium processing and achieve ideal performance, the Group has laid out its R&D and production capacity in advance.

    Steady Increase in Revenue Profit

    Zhongwang Annual Report of China shows that last year, the company achieved total export sales of 737,000 tons, total revenue increased by 16.6% to about RMB 194.6 billion yuan, and profit increased by 33.1% to about RMB 387 billion yuan annually.

    Zhongwang's good performance last year stems from the coordinated development of its three core businesses. As the second largest manufacturer of industrial aluminium extrusion products in the world and the largest manufacturer in Asia, the aluminium extrusion business is one of the core competitiveness of Zhongwang in China and an important driving force for its performance contribution. According to China Zhongwang Annual Report, in 2017, China's Zhongwang Aluminum extrusion business sold 616,000 tons, with a revenue of 17.1 billion yuan.

    Zhongwang, China, continues to explore the value of deep processing business and continuously introduces high value-added products. Last year, Zhongwang digged deep into the market demand in China and successfully developed large aluminium components that meet the standards of the transportation industry to supply automobiles, buses, rail vehicles and other markets. Sales and types of such products are on the rise.

    China Zhongwang's aluminium calendering project has also made progress in stages, adding impetus to future development. It is understood that the first production line of Zhongwang high value-added aluminium calendering material project in Tianjin was put into operation in the second half of last year. At present, the second production line is undergoing equipment debugging. As an important part of China Zhongwang's high value-added strategy, the completion of this project will enable China Zhongwang to further achieve important breakthroughs in key technology research and development and high-end product application.

    Strong Performance of Aluminum Alloy Template

    Since Zhongwang put forward the transformation goal of "striving to become a supplier of lightweight integrated solutions" in 2016, Zhongwang has continuously upgraded its design capability and production technology to provide customers with one-stop lightweight solutions covering design, production and after-sales, and the proportion of high-end products continues to rise.

    Providing customers with integrated solutions for the aluminum alloy template business, which has become an important role in China's Zhongwang performance. According to the annual report, Zhongwang's sales of aluminium alloy formwork last year amounted to 8.93 billion yuan, accounting for about 45.9% of the group's total revenue.

    Zhongwang of China said that the excellent performance of aluminium alloy template business was due to the improvement of alloy formulation, product size, surface treatment and other aspects of the product. The product quality and durability were significantly improved, which helped to improve the economic benefits of customers and was widely welcomed by the market.

    In fact, since the explosive growth of Zhongwang aluminium alloy template in China last year, it has attracted wide attention in the market. Industry analysis shows that the appearance of Zhongwang's aluminium alloy template in 2017 is due to the strong demand of the domestic market on the one hand, and on the other hand, it also proves that Zhongwang has a keen vision and accurate layout of the market and has launched high-quality products with strong market demand at an appropriate time.

    This seemingly "horizontally born" star product is precisely the "boutique" launched by Zhongwang after a long time of polishing. It is understood that Zhongwang of China began to pay attention to aluminium alloy formwork as early as 2011, and began to invest heavily five years ago. In 2013, Zhongwang, China, established the "Building Lightweight Material Design Center" in Beijing to develop aluminium alloy formwork. In 2014, Zhongwang, China, developed a patented aluminium alloy template for vertical bearing structure, and then developed a patented alloy formulation technology, which greatly improved the quality of its aluminium alloy template. At the end of 2015, Zhongwang began to strengthen the construction of plant equipment, as well as the introduction and training of talents. In 2016, Zhongwang announced that it had ordered 99 extruders. By July last year, Zhongwang had more than 90 aluminum formwork production lines and more than 90 international advanced aluminum extrusion production lines. A 225MN super-large extruder was put into operation. The new equipment effectively released the value enhancement brought by product restructuring.

    According to Guohai Securities, 2018 is the arrival time of a large number of orders from Zhongwang in China, 2019 will be the release period of Zhongwang's production capacity, and orders from small enterprises will gradually flow to Zhongwang in China.

    According to the relevant personages of China Formwork Scaffolding Association, in 2016, the national aluminum alloy formwork was applied in more than 2000 buildings, and by the end of last year, the application of aluminum alloy formwork reached more than 6000 buildings. With the continuous advancement of urbanization in China, the construction market is not.