(19 August 2009 – Hong Kong) Haitian International Holdings Limited (“Haitian International” or “the Company”, together with its subsidiaries and associates collectively known as “the Group”; stock code: 1882), one of the world’s largest plastic injection moulding machine (“PIMM”) manufacturers, is pleased to announce its interim results for the six months period ended 30 June 2009
Commenting on the Group’s results for the first half of 2009, Mr. Zhang Jianming, Executive Director and CEO of Haitian International said, “We emerged in better position than our competitors and were one of the few industrial players who remained profitable for the first half of the year amidst the tough business environment, underscoring our competitive edges and solid operational foundation in confronting the market challenges.”
For the six months ended 30 June 2009, the Group’s sales amounted to approximately RMB1,374,977,000, representing a decrease of 33% compared to the same period a year ago, which was the record half-year performance in the history of the Group. Gross profit totaled RMB304,251,000 translating into a decrease of 46% whereas profit attributable to equity holders declined from RMB262,660,000 a year ago to RMB110,301,000, equivalent to earnings per share of around RMB7 cents. The Board of Directors declared an interim dividend of HKD3 cents per share.
The market has seen a gradual improvement towards the end of the first half of 2009 in spite of the harsh business environment. At the onset of the year, the market was hit by dented investor confidence stemmed from the global financial crisis and Chinese New Year effect. Though the Group registered a barely profitable quarterly result, it managed to rebound from the rock bottom and began to recover thereafter due to the new and innovative product offering, as well as the Chinese government’s RMB4 trillion stimulus package in resuscitating the economy and reduction of value-added tax (“VAT”) on machines purchased in China which took effect on 1 January 2009. With the signs of market recovery being in sight and increasing utilization rate, the Group’s profitability significantly improved in the second quarter of 2009 and posted a 58.2% gain in sales on a quarterly basis to RMB842.4 million.
During the period under review, the Group emerged in better position than its competitors and profitability was sustained, thanks to its continuous efforts and resources committed in research and development (“R&D”) which enabled the Group swiftly responded to the market changes and catered to customer needs. Alongside the R&D focusing on large tonnage PIMMs, environmentally friendly PIMMs and high precision PIMMs, the Group started developing several new high speed PIMMs which emphasize on the needs of packaging industry featuring high injection speed, short cycle time and operating efficiency. The Group which spares no efforts in R&D was able to seize the market opportunities by offering innovative products. The sales of Mars (J5) series, the PIMMs with energy saving and higher precision features grew to RMB567 million, representing a growth of 15.5% compared with the first half of 2008.
Against the backdrop of the recuperating market and the Group’s efforts in optimizing the product mix through R&D, the Group was able to record an increase of 10.6% in domestic sales to RMB1,011.2 million from the second half of 2008. During the period under review, the domestic market, which passed its trough with signs of stabilization emerging in the wake of the implementation of VAT reform and the stimulus package by the government, accounted for 73.5% of total sales.
During the period, the small tonnage PIMMs which are more sensitive and responsive to market changes saw a resilient performance, with an upturn in orders and its sales lifted to RMB956.1 million from the second half of 2008. For the medium to large tonnage PIMMs, the Group began to see a gradual return of orders at the start of the second quarter of 2009.
Looking forward, Mr. Zhang said, “The PIMMs market has been stabilizing since the end of the first quarter of 2009. We believe the industry outlook remains promising, given that the positive effects of the stimulus package have started taking hold and the improvement of market sentiment is encouraging.”
In July 2009, the billing and delivery of PIMMs amounted to RMB370 million which retreated only 0.5% on a yearly basis and is back to the level before the financial crisis.
“We would continue staying abreast of the latest market development and swiftly respond to market changes. With our prestigious brand, continuous efforts in R&D, unmatched quality and price-performance ratio, self-developed core technology and efficient production scale, we believe we are well-positioned to climb to a new height with the growing future demand.” Mr. Zhang concluded.
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About Haitian International Holdings Limited
Haitian International is a leading PIMM manufacturer in the PRC, primarily designs, develops, manufactures, sells and supports plastic injection moulding machines (“PIMMs”) and related parts which are used by its end-user customers across a wide range of industries, such as automotive, construction materials, healthcare, logistics, packaging, information technology, electrical appliances, electronic and other consumer products etc., to produce plastic products and parts.
