Interim Results 2018: A new record high interim revenue and profit amid the uncertainty in global economic environment
- A new record high interim revenue with growth of 16.7% to RMB5,877.4 million (approx. USD893.8 million) and record half year profit, attributable to shareholders of RMB 1,169,4 Million (approx. USD177.8 million)
- 19,493 machines delivered to customers
- A remarkable success in strategic shift to electrical machines and two-platen machines
- Sustainable expansion of global footprint
(20 August 2018 – Hong Kong, stock code 1882) Even though the overall growth momentum of global economic activities has slowed down in the first half of 2018, Haitian International has still successfully achieved remarkable sales performance with another record sales and profits.
Haitian International recorded revenue of RMB5,877,4 million (approx. USD893.8 million) for the six months ended 30 June 2018, representing a remarkable growth of 16.7% as compared to the first half of 2017. 19,493 machines have been delivered to the customers worldwide in the first half of 2018, representing a steady growth of 7.6%. Gross profit margin managed to maintain at the high level of 31%.
Despite the slowdown in domestic economic growth in China, Haitian International’s domestic sales still increased by 18% to RMB4,178.5 million (approx. USD635.5 million). For the international market, the company’s diversified market advantages and its continuous investments in overseas countries supported its significant sales in different markets, against the impact from the “trade-war” with US. The total export sales of the Company increased by 13.5% to RMB1,580.2 million (approx. USD240.3 million).
Haitian International continued with its development strategy of shifting small tonnage machines toward electric solutions and large tonnage machines to two-platen solutions, thus making remarkable progress in further increasing the proportion of innovative products in the sales mix. In the first half of 2018, the sales of Zhafir fully electric machines increased by 30.6% to RMB680.5 million (approx. USD103.5 million) and the servo-hydraulic solution Haitian Jupiter Series also grew by 32.6% to RMB835.2 million (approx. USD127 million). Nevertheless, as the undisputable best-seller machine in the industry, Haitian Mars series have again proven its superior market position with sales volume exceeding 16,000 units in the first half of 2018.
Considering that the global economy is still under the influence of volatilities in emerging markets, the trade protectionism and the risk of geopolitical conflicts, Mr. Zhang Bin, Executive Director of Haitian International, said, “In the future, we will continue with our proven diversified strategic measures based on our three pillar strategy “Communication – Innovation – Efficiency” towards different markets around the world.”
The first phase of our new facilities in India and our new facility in Turkey were completed in the first half of 2018 and we will continue to increase our investments in India, Mexico and Russia with additional manufacturing facilities. In addition, our 3rd generation injection molding machines, with fully upgraded technologies, and our new high speed, fast cycling machines targeting different applications for mid to high end markets, will launch to the market before the end of 2018.
Internal reform and efforts to improve the efficiency have also continued. Haitian International expects to complete the upgrade of the SAP system in October this year, paving way for its fully-automated production management target of “8+16”. In addition, the acquisition of Hangzhou Keqiang Intelligence Control System Co., Ltd., has strengthened our know-how in the core technology of the control unit of injection molding machines and the further development of the factory management system.
Mr. Zhang added, “we remain cautious in the future of Chinese and global economies for the second half of 2018. In the future, we will continue with our proven diversified strategic measures based on our three-pillar strategy of “Communication – Innovation – Efficiency” toward different markets around the world. We will continue to create value for our customers with better quality products and services.”