Haitian International sustains profitability in a difficult market environment
One of the world’s largest manufacturers of injection molding machines announced its annual results for the year ended 31 December 2012: Haitian International (Stock-code: 1882) reports about 22,000 sold units and a turnover of about 6.3 billion RMB. Gross margin and net profit margin are on the same level as 2011 and again an operative cash inflow of more than RMB 1.2 milion was generated. Innovative technologies and a solid business of big machines could also stabilize the export business. The turnover of the all-electric Venus Series grew by 14%.
For the year ended 31 December 2012, the Group achieved revenue of 9.8% to RMB 6,335.6 million. Considering significant losses in the Asian machinery industry, again Haitian International emerges as the clear winner. Efficient production concepts, new innovative machine series introductions and prudent capital management led to an operating cash inflow (excluding change of restricted cash) of about RMB 1.2 million, representing an increase of 204.3% year-on-year.
Although impacted by the industry-wide downturn at the end of 2011 and experiencing a tough start at the beginning of the year, the market leader achieved good progress in improving its gross profit margin to 30.5% (1H 2012: 29.8%) and net profit margin to 15.6% (15.7% in 2011) in the second half of 2012.
The continuing precarious domestic market and a wait-and-see attitude due to the political changes held back capital spending by Chinese molders.
“The export market result is more or less on the same level as 2011. Due to the introduction of our new second machine generations Mars II, Venus II and Jupiter II in the second half of 2012, we could convince molders of our value with innovative technology at an affordable price. This stabilized our export business. Thanks to strong business in middle and large clamping forces and with the all-electric Venus Series in the smaller clamping forces, we maintained our sales levels,” explains Mr. Zhang Jianming, Executive Director and CEO of Haitian International.
In spite of the difficult market environment, Haitian International is holding on to its pole position among the manufacturers of injection molding machines with 22,000 sold machines in 2012. The decreased number of sold machines compared to 2011 was the result of very good big machine business and the increased sale of all-electric and high-performance machines in 2012. The average selling price per machine rose, therefore, from RMB 253,000 to RMB 279,000.
With about 73,000 sold units since introduction and an internal share of 75%, the energy saving Haitan Mars Series is still the Group’s bestseller. But the all-electric Zhafir Venus Series has achieved a welcome growth of over 14%, with 800 sold machines. The new generation of the two-platen Jupiter Series convinced the customers especially in the bigger clamping forces from 1,200 tons on and recorded an 11% increase in sales with about 273 million RMB.
“Due to increasing inquiries from reputable global molders and a big interest in the new machine series, we started the race with a lot of positive energy and competitive products. Once again, it is a pleasure to demonstrate our innovative power at Chinaplas in May and the K-Show in autumn,” Mr. Zhang confirmed.
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