PROFOUND REFORMS AND INCREASED FLEXIBILITY PAY OFF +++ MORE THAN 50 BILLION RMB SALES IN THE FIRST HALF OF 2019 +++ RECORD CASH FLOW FROM OPERATING ACTIVITIES +++ THE SALES OF ELECTRIC SERIES OUT OF SMALL MACHINES AND TWO-PLATEN MACHINES OUT OF BIG MACHINES CONTINUED TO GROW
August 26, 2019, Hong Kong. Haitian International Holdings Limited (“Haitian International”, together with its subsidiaries and affiliates referred to as “the Group”; share code: 1882), one of the world’s largest manufacturers of plastic injection molding machines, announces its (unaudited) interim results for the period from January 1 to June 30, 2019.
Reforms and flexibility
Mr. Zhang Bin, Executive Director of Haitian International, said: “The market environment continues to be difficult, but we see this as an opportunity. The cash flow record in the operating business shows that profound internal operative reforms and their activities to increase flexibility and productivity are now working. The targeted investments of the previous years in flexibility and modernization of the plants are also effective. “Many individual activities have also led to improved efficiency, such as flexible working hours and innovative multiple shift operation, flexible contracts with suppliers, our 16+8 principle and much more. In such a difficult economic situation, the company was able to react extremely flexibly and achieved a continuous further development with high added value despite the difficult market environment. “
Global trade conflicts and increased trade protectionism led to a slowdown of global economic growth, so that Group sales in the reporting period amounted to RMB 5,008.9 million. This corresponds to a decrease of 14.8 % compared to the same period of the preceding year. In view of the current market data, e.g. from Europe, the USA or Japan, the industry recorded significantly higher sales losses in international comparison, so that it can be assumed that Haitian International will gain slight market shares overall.
Domestic sales of Haitian International decreased by 20.5 % to RMB 3,320.2 million due to the slowdown in global economic growth and the lack of customers confidence in to invest in new machinery. Trade protectionism and the devaluation of certain currencies have led to a decline in sales in most of the Group’s overseas markets. The export turnover of RMB 1,546.5 million corresponds to a decrease of 2.1%.
Sales development of the series
The slowdown in domestic economic growth and the changed economic environment have also had a significant impact on the sales figures of the Haitian Mars Series. In the first half of 2019, sales fell by 18.9 % to RMB 3171.5 million. Nevertheless, the servo-hydraulic bestseller remains the world’s most successful injection molding machine.
The differentiated product strategy – electric machines in the small and medium-sized sector, two-platen machines in the medium and large sector – continues to enjoy growing acceptance among plastics processors. Improved technologies and higher-quality machines are increasingly in demand on the market, with the result that electrical solutions are increasingly replacing hydraulic ones. This partly explains the declining sales figures for the Mars Series.
The absolute turnover of the electric Zhafir Series rose by 13.6 % to 773.1 million RMB. Sales of Zhafir electric machines out of the small tonnage injection molding machines continued to grow and amounted to 22.5 %.
Meanwhile, the share of JU machines sold from medium and large clamping force classes rose to 44.1 %.
Years of management innovation
Haitian International will continue to pursue internal reforms to improve efficiency. For example, the introduction of new management software platforms and the increased development of younger and focused management teams, as well as the switch to digitized operative factory management. The years 2019 and 2020 were seen internally as milestones of management innovation.
Mr. Zhang Bin: “Haitian International will continue to create added value for its customers, with better quality and convenient services, in order to grow and develop together with customers, employees and business partners”.
