Aluminum manufacturer China Zhongwang Holdings Limited witnessed a decline in its overall sales volume by 33.94pc to 351,637mt during the January-June period as compared to 532,275mt in H1 2019, the company’s 2020 interim results report stated.
Sales revenue decreased by 32.9pc to CNY8.65bn ($1.26bn) in H1 as compared to CNY12.89bn ($1.88bn) during the prior-year period.
|Sales Volume in H1 (in metric tonne)|
|Aluminum extrusion business||155,536||293,877||-47.07%|
|Aluminum flat rolling business||177,100||220,440||-19.66%|
|Further fabrication business||19,001||17,958||5.81%|
The company, a supplier of high-end aluminum extruded products to several automobiles manufacturers including the BMW Group, said that in the long run, it will continue to focus on meeting domestic demand while actively enhancing the competitiveness of high-end aluminum products in the international market and exporting products with higher added value.
The market penetration of aluminum alloy formwork in China is estimated to grow by about 56pc by 2024, and the market will continue to grow steadily in the future, it said citing a report.
The Chinese rail transit vehicle market will maintain sustained growth in the next three years, and is expected to exceed CNY200bn ($29.3bn) by 2022, providing ample room for the use of aluminum alloy materials.
The company also said that it will continue to optimize its aluminum fabrication capacity and put more aluminum extrusion equipment in operation for commercial production. They will also be focusing on strengthening its R&D and technological advantages.
As per a media report, sources in the company said that it has scaled back its European sales operation as a result of EU anti-dumping investigations and the COVID-19-induced economic downturn.
($1 = CNY6.82402)