|For the year ended 31 December
|Gross Profit Margin||29.3%||28.1%||+1.2ppts|
|Profit Attributable to Equity Holders||568.4||450.9||+26.1|
|Basic Earnings Per Share (RMB cents)||36||37*||(2.7)|
|Final Dividend Per Share (HK cents)||10||0||N.A.|
*Calculated based on the weighted average no. of shares issued during the year.
(09 April 2008 – Hong Kong) Haitian International Holdings Limited (“Haitian” or “the Company”, together with its subsidiaries collectively known as “the Group”; stock code: 1882), one of the world’s largest plastic injection moulding machine (“PIMM”) manufacturers, announced its annual results for the year ended 31 December 2007.
During the year under review, the Group’s sales amounted to approximately RMB 3,825 million, representing an increase of 20.4% compared to a year ago. Profit attributable to equity holders grew 26.1% to RMB 568 million, equivalent to an earning per share of RMB 36 cents. The steady growth in 2007 was mainly attributable to the combination of the Group’s comprehensive product range and launch of high value added products to meet the customers’ demand. To share the optimal returns with its shareholders, the Board of Directors declared a final dividend of HK 10 cents per share. In addition to the interim dividend of HK 9 cents, the Group’s dividend payout ratio for the year achieved around 50%.
Commenting on the Group’s excellent results, Mr. Zhang Jianming, Executive Director and CEO of the Company said, “Our Group had another record breaking year 2007, maintaining a healthy and sustainable growth in both sales and profits. Our ability to achieve such results in emerging unfavorable market environment, especially with regard to the increase of raw material cost, this once again evidences the correctness of our strategy to focus on customer benefits with innovation. The shows our capability of capturing significant market shares in the fast growing categories of products – large tonnage PIMMs, environmental friendly PIMMs and high speed and precision PIMMs – in the industry, as well as implementing effective cost-saving measures. Our gross profit margin has increased by 1.2 percentage points to 29.3% during the reviewed period.”
“Haitian International’ PIMMs were recognized as the ‘China Top Brand’, ‘China Top Export Brand’ and ‘China Famous Trademark’ by respective Chinese authorities. We are the only PIMM manufacturer in China who received all the three accreditations. This demonstrates that we have continued out-performing our Chinese peers and strengthen our leading position in China.” Mr. Zhang added.
During the year, the domestic sales increased by 17.7% to RMB 2,503 million whilst the sales from overseas markets surged by 31.0% to RMB 1,250 million. The impressive sales performance was mainly benefited from the strong demand of medium to large tonnage PIMMs and overwhelming market response to the new energy saving machines, namely Mars (J5) series.
The award-winning Mars (J5) series PIMMs, a new generation of energy saving products, were well-received by the market. The new product has been one of the Group’s key growth drivers throughout the year. In second half of 2007, the sales of Mars series has further increased by 50% compared to the first half of 2007 and posted a sales of RMB 430 million for the full year.
In order to further enhance Haitian International’s R&D capability and exploit further growth potential in the high tech and premium markets , the Group acquired a 91% stake in Zhafir Plastics Machinery GmbH (“Zhafir Plastics Machinery”), a German R&D company for an aggregate consideration of approximately RMB 67.9 million in August 2007. Zhafir Plastics Machinery has a team of experienced and highly qualified European engineers. It targets to develop a new series of high tech all electric machines for the premium market. The acquisition facilitated the Group’s focused two-brand approach for meeting different customers’ demand. It is planned to develop broad synergies between the two brands Haitian and Zhafir.
Zhafir Plastics Machinery has launched its first all-electric PIMM – Venus Series by upgrading the HTD series with innovative and breakthrough solutions. The new series was exhibited at the K-Show in Germany, the largest international plastic related product trade show, in October 2007. In future, Zhafir Plastics Machinery will concentrate on developing new generation of premium all electric PIMMs. This will bring Haitian into the fast-growing premium market which previously dominated by Japanese manufacturers.
Moreover, the Group plans to increase its production capacity by building new factories in Ningbo, Zhejiang Province and Guangzhou, Guangdong Province, respectively. The new factory in Ningbo comprises a GFA of 120,000 square meter (sq. m.) which is expected to commerce operation by the end of 2008. The 35,000 sq. m. GFA factory in Guangzhou is expected to begin production in 2009.
As at 31 December 2007, the Group has a solid financial position with net cash of approximately RMB 1,339 million.
Looking forward, Mr. Zhang said, “With growing concerns over the US economy, China central government’s austerity measures and the fluctuation of steel and other raw material prices, the PIMM market will continue to be affected. However, focusing on innovation, creating advantages for our customers, partners, suppliers and employees as well as leveraging on the Group’s comprehensive product portfolio and production capacity, highly recognized brand and quality control, strong R&D capability and sound financial position, we feel well prepared to face these adverse market conditions. We are confident that the Group will have another very good year in 2008.”
About Haitian International Holdings Limited
Haitian International primarily designs, develops, manufactures, sells and supports plastic injection moulding machines (“PIMMs”) and related parts which are used by its end-user customers across a wide range of industries, such as automotive, construction materials, healthcare, electronic and other consumer products etc., to produce plastic products and parts. According to the China Plastic Machine Industry Association, Haitian International is the largest PIMM manufacturer in the PRC with a market share of 32% in terms of sale volume in 2006.
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