Aluminium maker Zhejiang Dongliang clocks $13.5 mln in H1 net profit
Shanghai. August 23. INTERFAX-CHINA - Zhejiang Dongliang New Material Co. Ltd. (Zhejiang Dongliang), an aluminum producer, boosted net profit by 38.72 percent year-on-year to RMB 86.85 million ($13.57 million) in the first half (H1) of 2011, according to financial results released Aug. 23.
Revenue rose 14.70 percent over the same period to RMB 4.64 billion ($726.57 million). Zhejiang Dongliang attributed the results to a central government initiative to increase affordable housing.
China's Ministry of Housing and Urban-Rural Development (MOHURD) unveiled plans in January for 36 million units of affordable housing to be built as part of the 12th Five-Year Plan (2011-2015). Construction on 10 million units is slated to begin by the end of this year, requiring some 396,000 tons of aluminum.
Zhejiang Dongliang is the latest domestic aluminum firm to report impressive results for this year. Yunnan Aluminum Co. Ltd. booked H1 net profit of RMB 31.36 million ($4.85 million), up 177.49 percent on an annual basis, while Henan Zhongfu Industry Co. Ltd. generated RMB 81.68 million ($12.76 million) in net profit.
Zhejiang Dongliang added that an aluminum alloy project in Zhejiang Province's Huzhou City with annual production capacity of 50,000 tons will likely commence operations later this year.
The project began construction in July 2010 and required total investment of RMB 520 million ($81.23 million). The project is expected to create 350 jobs and generate annual net profit of RMB 113.94 million ($17.80 million).
Zhejiang Dongliang's shares on the Shenzhen Stock Exchange closed at RMB 12.39 ($1.93) on Aug. 23, up 8.56 percent from the previous trading day.
- PY
