Half-yearly report as of June 30, 2013
Haitian International Holdings Limited is a publicly listed company (Stock Code 1882). It published its half-yearly report for 2013 on August 20 in Hong Kong. This world leader in the manufacture of injection-molding machines has increased its turnover to around 3.6 billion RMB. This is an increase of 13.9% compared to the first half of 2012. It is the second-best interim result since the company was founded. Because of gains in efficiency and use of lean production strategies in all production sectors, the company has successfully increased its gross profit margin to 30.7%. Gross profits have increased by 17.0%, reaching 1,112.6 million RMB.
In all, more than 13,600 machines were sold and delivered to customers during this period. This is an increase of more than 20% compared with the first half of 2012. Exports reached a new record of 1,057.2 million RMB. Compared to its export sales for mid-2012, the company achieved an increase of 4.5%, and compared to the second half of 2012 the exports share grew by as much as 8%.
There was strong growth in the injection-molding machine market in 2010 but it was much weaker in the next two years, especially in the main Chinese market. Now the market has stabilized again and is showing a slight upward trend. This tendency is also confirmed by the worldwide increase in plastics consumption. In the first half of 2013 in particular, Haitian was able to profit even more strongly from this trend, mostly in China but also by catering to the markets in Southeast Asia, the Middle East, Africa, and the USA. Domestic machine sales in China increased by 17% in comparison with the first half of 2012. In Europe and in some emerging countries, such as Brazil and Turkey, markets were slow by comparison. However, Haitian was able to raise its own share of export figures to Europe by 8.2 percentage points to reach its current 32.7%, as compared with 24.5% for the first half of 2012.
Successful introduction of the second-generation machines
Mr. Zhang Jianming, CEO of Haitian International, believes that one important reason for the overall sharp rise in the sales figures is the new Haitian and Zhafir machine portfolio: “The new generations of these machines increase our competitiveness, but they also offer the processors greatly improved performance parameters for their own production efficiency.” These were simply very good arguments with which to win new customers in domestic markets and overseas in the first half of the year, he contends. Demand was concentrated particularly on machines in the smaller categories of clamping force. While sales of small machines (up to 550 tons) rose by around 21%, sales of machines in the mid- and high-range categories increased by only 3.7%.
If we compare between machine series, the Mars Series has contributed most to the success; since the second generation was introduced, its share has risen significantly. This bestseller continues to take first place with almost 11,500 units sold – around 85% of the sales for the first half of the year! There is also a notable increase in the demand for the fully electric Zhafir Venus Series. The sales figures rose by 26.4% in the first half of 2013, with 445 units sold, and the turnover grew by 10.7% to reach 176.6 million RMB.
Comparison of the most important data
|(RMB Millions)||1st half 2012||1st half 2013|
|Turnover||3,179.1||3,620.6||+ 13.9 %|
|Exports||1,011.4||1,057.2||+ 4.5 %|
|Domestic China||2,085.0||2,479.1||+ 17.0 %|
|Gross profit||946.1||1,112.6||+ 17.6 %|
|Operating results||563.1||639.6||+ 17.0 %|
|Gross profit margin||29.8 %||30.7 %||+ 0.9 %|
Haitian International Company Profile
Since 2010, Haitian International has been one of the leading companies in the field of injection-molding technology in terms of units sold and turnover. The company was founded in 1966 by Zhang Jinzhang in Ningbo, China, and over the course of 40 years it has grown to become a publicly listed company (Stock Code 1882) with worldwide success. Its total turnover for 2012 amounted to around 6.3 billion RMB (about 785 million EUR). The group maintains a network of manufacturing plants, sales subsidiaries, and service partners that span the globe working in dynamic growth markets in cooperation with plastics processors from many different sectors. At present, the Haitian company group serves customers in more than 130 countries.