Interim Results 2016: Product innovation and consistent enhancement of operational efficiency
|For the six months ended 30 June (million RMB)||2016||2015||Change|
|Profit attributable to shareholders of the|
Company excluding change in fair value of CB
|Profit Attributable to Shareholders of the Company||690.2||585.0||18.0%|
|Basic Earnings Per Share (RMB cents)||43||37||18.0%|
|Interim Dividend (HK cents)||17||16||6.3%|
17 August 2016 – Hong Kong) Haitian International Holdings Limited (“Haitian International” or “the Company”, which together with its subsidiaries and associates, is referred to as “the Group”; stock code: 1882), one of the world’s largest plastic injection moulding machine (“PIMM”) manufacturers, is pleased to announce its interim results for the six months ended 30 June 2016 (“1H2016”).
Continued to deliver high level of interim revenue and profit
In 1H2016, as China economic development at a lower speed became new ordinary and the weakening overall demand for PIMMs, Haitian International managed to deliver high level of interim revenue and profit amid current adverse external environment. During the review period, the Group strengthened its leading position in the industry and recorded revenue of RMB3,860.9 million, representing an increase of 0.3% compared with that of 2015, while was 10.8% higher than the sales in the second half of 2015, reflecting a path of recovery in the sales of the Company along with the slow recovery of economy. If the change in fair value of the USD200 million Convertible Bonds issued in 2014 were excluded, the adjusted net profit attributable to shareholders for 1H2016 would have increased by 8.6% to RMB712.8 million compared with that of 2015. The Board of Directors has declared a first interim dividend of HK$0.17 per share for the six months ended 30 June 2016(1H2015: HK$0.16).
Improved operational efficiency and productivity
Due to the structural change in sales after the full launch of “Plus” series machines and stable raw material costs, the Group continued to make progress in its operational efficiency and profitability. In 1H2016, its gross margin increased to 34.1% from 32.3% in the same period in 2015. The increase was attributable to the improvement in operational efficiency and low raw materials price. With the improved gross profit margin, its operating profit increased by 10.7% to RMB799.5 million in 1H2016. Its adjusted net profit margin (excluding fair value change in CB) also improved from 17.1% in the same period of 2015 to 18.5% in 1H2016, which was a record high in the Group’s history.
Successful strategy for increasing proportion of innovative products in sales mix
Though under the unfavourable external macro-economic environment, the Group continued with its business development strategy of converting small tonnage hydraulic PIMMs to full-electric PIMMs and large tonnage PIMMs to two-platen PIMMs, thus making remarkable progress in raising the proportion of innovative products in sales mix. The proportion of full-electric PIMMs in small tonnage PIMM sales increased from 13.7% to 13.8% and that of two-platen PIMMs in the sales of medium-sized and large tonnage PIMMs rose from 27.0% to 34.5% in 1H2016. The Group’s second generation machines have established well recognition in the market and the advantages in performance and efficiency of its second generation machines and newly launched “Plus” series upgraded machines are well recognized by customers. Sales of Zhafir Venus Series (full-electric PIMMs) increased by 2.3% to RMB340.4 million and those of Jupiter Series (large two-plate PIMMs) rose by 24.4% to RMB453.7 million. The strong growth in sales of full-electric and two-platen PIMMs enabled Haitian International to maintain sales volume similar to that in 2015 despite the tough business environment. Meanwhile, its Mars Series remained the best-selling plastic injection moulding machines and accounted for nearly 70% of the total sales because of the continued improvement and the successful introduction of the second-generation products and the “Plus” series machines.
Advantages of geographically diversified market and leading position in domestic market
In 1H2016, the overall demand for PIMMs remained stable amid the transition in domestic economy and global complicated environment. With the new policy of encouragement for new entrepreneurs and innovation, the demand in domestic PIMM market has seen a mild recovery. Benefiting from well market acceptance of its full-electric PIMMs and two-platen PIMMs, Haitian International’s domestic sales recorded an increase of 5.2% to RMB2,741.0 million and this further reinforced its leading market position in China. In the export markets, due to low investment and purchase momentum in some countries in the emerging markets resulting from depreciation of currencies and political instabilities, Haitian International is planning for more resource input to markets with potential in order to enhance its service capabilities to customers. The management believes that this would further strengthen Haitian International’s advantage in diversification in different markets. During 1H2016, the Group recorded export sales of RMB1,042.3 million, representing a decrease of 10.6% compared with that in 2015.