Mr Kwong Wui Chun, Chairman of Asia Aluminum remarked: "The year saw the establishment of a key milestone in our history during which we had fully leveraged on our solid foundation to expand into new markets and develop new products. Through this process, we have enlarged our platform to enable us to derive revenues from a more diversified mix of income streams, bringing to our Group more stable, sustainable and high-quality earnings."

During the year, Asia Aluminum expanded its manufacturing presence from Foshan to Zhaoqing where it made its first inroad into production of aluminum sheets, a project that calls for a total investment of over HK$3 billion. The new facility in the "Asia Aluminum Industrial City" in Zhaoqing broadens the Group's horizon to the lucrative aluminum sheets or rolled products market in the PRC which is at the moment heavily reliant on imports.

Dr Benby Chan, Deputy Chairman and CEO of Asia Aluminum elaborated on the Group's establishment of a new production base in Zhaoqing: "Our new manufacturing base of 1.26 sq km in Zhaoqing will be equipped with a designed annual capacity of 400,000 metric tons. The new aluminum sheet facility, which is expected to commence operation in 2005, fits us well into China's growing market of aluminum sheets for construction and non-construction uses, including those for use in the transportation, consumer household and industrial areas."

Asia Aluminum furthered its lead in aluminum processing capabilities in Asia through a 17% growth in capacity to 140,000 metric tons from its five state-of-the-art facilities in China. During the year the Group also endeavored a great deal of financial and management resources to seek industry recognition for its testing chamber facilities to strengthen its position as a one-stop total solution provider.

"As a pioneer in the aluminum processing industry, we are charged with a mission to continuously invest our expertise, know-how and capital to grow our Group to one of the top five largest aluminum fabrication operators in the world within the next three years. We firmly believe the right steps are taken to steer our Group to cement our client relationship, reinforce our leading industry position, and of paramount importance, to deliver sustainable high growth to our shareholders," continued Dr Chan.

China remained the core and most promising market, contributing 79% of or HK$1,861 million in total revenues for the Group. In the reporting year, the Group secured aluminum extrusion and panel supply contracts for Beijing Grand Opera House, Hangzhou Opera House, Beijing Friendship Hospital, Tianjin People's Hospital, Shanghai German Centre, Shenzhen People's Square and Shanghai Xintiandi II. Supply contracts for various projects for the Beijing Olympics are in the final negotiation stage. In Hong Kong, the Group has obtained supply contracts for AIG Tower, Tsing Yi Hotel, Tsuen Wan Police Headquarters, The Science Park, the Langham Place in Mongkok and Enterprise Square III in Kowloon Bay. The supply contract for The Disneyland Park will be concluded soon.

Sales to international markets aggregated to HK$497 million in the year. The Group expects seamless sales growth in North America in 2004 through increasing outsourcing orders from equity partner Indalex and other direct clients. Asia Aluminum has furthered its collaboration with Indalex to leverage on their powerful distribution network and strong clientele in North America, whilst expanding its market share through introduction of a broader product range. Overall, it targets to reach a 50:50 spread of revenues from the PRC and international markets.

"Novar is very encouraged by our partnership with Asia Aluminum. The business is making strong progress. Our ability to offer North American customers the growing capabilities of Asia Aluminum, in addition to our own Indalex plants, is winning increasing new business every quarter. The future looks bright for the partnership," noted Mr Jurgen Hintz, Chief Executive of Novar Plc, the ultimate parent company of Indalex.

As on June 30, 2003, the Group had total assets of HK$4,139 million. Cash and bank balances and total borrowings were HK$1,987 million and HK$998 million respectively. Basic earnings per share for the year were HK9.83 cents.

Mr Kwong concluded: "A strong recognition to our ardent efforts spared, I am delighted to announce that our Group has been recently awarded by Forbes Global, for the second time in a row, as one of the 'World's Best 200 Under-a-Billion Companies' for 2003. With our strong foundation, elevated capacity and team of dedicated staff, I am confident that our mission of becoming a world top-five aluminum extruders in the imminent future will be a realistic and achievable one."

About Asia Aluminum
Asia Aluminum Holdings Limited (SEHK: 930) possesses one of the highest and most advanced aluminum processing capabilities in Asia. It operates five state-of-the-art plants in China with an aggregate annual capacity of 140,000 metric tons and equipped with top-class equipment and facilities to provide one-stop solutions for its customers. Through an equity alliance with Indalex, the second largest aluminum extruder in North America, the Group has made inroads in expanding international sales and product portfolio. The Group was cited as one of "The World's Best 200 Under-a-Billion Companies" by Forbes Global for two consecutive years.

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Asia Aluminum Holdings Limited

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