China Zhongwang Records Net Profit of RMB 2.6 billion for 2010

Dividend RMB0.19 per share; Dividend payout 40%

Gross margin expanded to 40.6% as focus shifted to industrial aluminium extrusion products

Expand to high value-added aluminum FRP business to form new growth engine

HONG KONG, March 10, 2011 /PRNewswire-Asia./ --

Financial Highlights (For the year ended 31 December)

2010 2009

RMB million RMB million

Revenue 10,521.9 13,852.7

Gross Profit 4,276.4 5,290.1

Gross Margin 40.6% 38.2%

Net Profit 2,595.9 3,528.8

EPS - Basic (RMB) 0.48 0.72

Dividend (RMB) 0.19 0.23

Dividend Payout (%) 40% 35%

Cash and Bank Balances 17,263.4 13,709.6

China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", HKEx stock code: 01333), the largest aluminium extrusion product manufacturer in Asia and China*, with a particular focus on the transportation, machinery, industrial equipment and electric power engineering sectors, announced its annual results for the year ended 31 December 2010 ("year under review"). The Group's revenue and profit attributable to shareholders for 2010 amounted to RMB10,521.9 million and RMB2,595.9 million, respectively, representing a year-on-year decrease of 24.0% and 26.4% respectively. The declines were mainly due to the decrease in export sales arising from the US anti-dumping and countervailing duties investigations.

The Group continued to implement the strategy of focusing on industrial aluminum extrusion products in 2010. Sales value and volume of industrial aluminum extrusion products accounted for 95% and 92% of the Group's total sales and volume respectively in 2010, increasing from 83% and 74% for 2009, respectively. It has become the Group's major source of revenue and profit. As a result of the product mix enhancement, the average selling price of the Group's products increased from RMB27,749 per ton in 2009 to RMB30,283 per ton in 2010, leading to a 2.4 percentage point increase in the Group's gross profit margin, to 40.6% for 2010.

Basic earnings per share for 2010 amounted to RMB0.48 (2009: RMB0.72). To reward shareholders for their support, the board of directors proposed to declare a final dividend of RMB0.19 per share, which is equivalent to a dividend payout ratio of 40%.

To cope with the development of high-end industrial aluminium extrusion products, the Group optimised its production capacity as planned. As at 31 December 2010, the Group's production capacity was approximately 640 kilotons.