Haitian International Holdings Limited is pleased to announce its annual results for the year ended 31 December 2016.
Sales performance achieved a record high again due to a mild recovery in demand for plastic injection moulding machines
Even though Chinese economic growth still faces significant pressure in 2016, it is far more stable than most other regions in the world and a mild recovery in demand for plastic injection moulding machine industry was noticed in the second half of 2016, even before a concrete full recovery in the domestic manufacturing sector. Amid the volatile market, Haitian International strived to achieve remarkable result to celebrate its 50th anniversary. Through the commitment to customer requirements in this situation and the commitment of every employee of the Group and its business partners, the Group successfully achieved extraordinary sales performance with another record sales and profits. During the year, the Group’s revenue reached RMB8,098.1 million, representing an increase of 10.4% compared with that in 2015.
Successful PIMM business development strategy for further increasing proportion of innovative products in sales mix
The domestic economy in China noticed a mild recovery and this drove the demand in plastic injection moulding machines. The Group’s strategy of shifting small tonnage PIMMs towards full-electric PIMMs and large-tonnage PIMMs to two-platen PIMMs agained proved to br the correct strategy and continued to deliver outstanding results. The proportion of electric PIMMs in small tonnage PIMM sales increased from 14.8% to 15.3% and that of two-platen PIMMs in the sales of medium-sized and large tonnage PIMMs rose from 28.5% to 36.3% in 2016. The Group’s second generation machines have established well recognition in the market and the advantages in performance and efficiency of its second generation machines are well recognized by customers with promising sales revenue. Sales of Zhafir electrical series and two-platen Jupiter Series (large two-platen PIMMs) in 2016 reached RMB795.1 million and RMB982.2 million, representing an increase of 17.7% and 32.5% respectively. In addition, the economic recovery of China in the second half of 2016 was more obvious in the sales of small tonnage machines, which are more sensitive and response faster to changes of market situation and economic performance. This led to improvement in the sales of Mars series PIMMs, which increased by 9.1% to RMB5,548.9 million in 2016 from RMB5,086.1 million in 2015.
Implemented diversified market strategy to further consolidate leading position in domestic market, sales revenue achieved historical high record for overseas market. In the second half of 2016, the domestic economy in China noticed a mild recovery and this drove the demand in plastic injection moulding machines. Benefiting from well market acceptance of its electrical PIMMs and two-platen PIMMs, Haitian International’s domestic sales recorded an increase of 14.0% to RMB5,552.7 million and this further reinforced its market leading position in China. In the export markets, the Group’s diversified market strategy continued to compensate such external adverse factors and its investment in Germany and India for the past years started to drive the sales growth in relevant regional markets. The Group recorded a historical high export sale of RMB2,360.8 million in 2016, representing an increase of 3.0% compared with that in 2015.
Looking ahead, Mr. Zhang Jianming, Executive Director and CEO of Haitian International, said, “Since the second half of 2016, the Chinese government implemented a number of policies including ‘Stable Growth, Reduce Overcapacity’ to strengthen the investment confidence among local customers. The new investment in real economy becomes more active and this trend continued into early 2017 and the orders from customers well exceeded our expectation. The records achieved in 2016 proved that our business strategies are successful and we will continue to adhere to the principles of customer demand as guidance and implement ‘application-oriented’ in our marketing strategy, seizing the opportunity in the recent recovery and continue to deliver innovative products with high price-to-performance ratio to the customers. We are cautiously optimistic on the path to recovery for the global economy as well. Meanwhile, we are also well prepared to the challenges in international markets by further implementing the strategies of local manufacturing in different regions such as Germany, India, Vietnam and other key markets.”
Mr. Zhang added, “We believe that leveraging on our strategy of innovation in technology, management and service, as well as matching the new national strategy of ‘Made in China 2025’ by Chinese Government, we will further innovate in our product development, manufacturing process and service to ride on the different aspirations of the third and fourth industrial revolution in different regions of the world with adapted strategies and concepts. We target to build a solid foundation in providing smart automation product to our customers and continue to lead in the competitive industry in the world and create greater value for our customers, shareholders and employees.”
