HAITIAN
Operating profit improves by over 10% in H1 2016 driven by improving margins / Uncertainty in world economy affects revenues from exports / Domestic sales increase by 5.2% / Improvement expected in final six months of year
 Despite all challenges, Haitian called its H1 2016 sales performance satisfactory (Photo: Haitian) |
An improvement in gross margin resulted in a 10.7% year-on year increase in operating profit to CNY 799m (EUR 107m) in the first half of 2016 at injection moulding machinery producer Haitian International (Hong Kong / China; www.haitianinter.com). Sales in the period rose marginally to CNY 3.86 bn.
The company said an uncertain world economy, combined with a deceleration in economic growth of 6.7% in China, had to some extent affected investment confidence and created a challenging operating environment. Despite this, it said, it still managed to maintain satisfactory sales performance relying on the success of its second generation and “Plus” series of upgraded machines.
During the first half of 2016, the company’s gross margin increased to 34.1% from 32.3% in the same period in 2015. The rise was attributable to improvement in operational efficiency and lower steel-related raw material costs, the company said.
The domestic market continued to move slowly to reduce excess capacity and build up inventory. In H1 2016, Haitian’s domestic sales increased by 5.2% year-on-year to CNY 2.74 bn.
The company said the expectation of a rate hike by the US Federal Reserve and uncertainty in the global economy brought about by the UK’s “Brexit” referendum vote continued to affect currencies apart from political instabilities in countries in emerging markets.
Sales to countries in South America and south-east Asia declined during the period. Investments in Germany and India were increased and the company is planning to boost investment in markets with potential, it added. During the first half of 2016, export sales fell by 10.6% year-on-year to CNY 1.04 bn.
Against a background of a fragile global recovery and slowly-growing Chinese economy, the company said it will continue to rely on its research and development capabilities and product development technologies to provide products with a good price-to-performance ratio for customers around the world in different industries and expects the second half of 2016 to see improved sales performance over the same period in 2015.
The company said an uncertain world economy, combined with a deceleration in economic growth of 6.7% in China, had to some extent affected investment confidence and created a challenging operating environment. Despite this, it said, it still managed to maintain satisfactory sales performance relying on the success of its second generation and “Plus” series of upgraded machines.
During the first half of 2016, the company’s gross margin increased to 34.1% from 32.3% in the same period in 2015. The rise was attributable to improvement in operational efficiency and lower steel-related raw material costs, the company said.
The domestic market continued to move slowly to reduce excess capacity and build up inventory. In H1 2016, Haitian’s domestic sales increased by 5.2% year-on-year to CNY 2.74 bn.
The company said the expectation of a rate hike by the US Federal Reserve and uncertainty in the global economy brought about by the UK’s “Brexit” referendum vote continued to affect currencies apart from political instabilities in countries in emerging markets.
Sales to countries in South America and south-east Asia declined during the period. Investments in Germany and India were increased and the company is planning to boost investment in markets with potential, it added. During the first half of 2016, export sales fell by 10.6% year-on-year to CNY 1.04 bn.
Against a background of a fragile global recovery and slowly-growing Chinese economy, the company said it will continue to rely on its research and development capabilities and product development technologies to provide products with a good price-to-performance ratio for customers around the world in different industries and expects the second half of 2016 to see improved sales performance over the same period in 2015.
31.08.2016 Plasteurope.com [234915-0]
Published on 31.08.2016
German version of this article...