Haitian International Holdings Limited, China's largest manufacturer of injection molding equipment, recently announced its first-half performance statement, with sales growth of 16.7% to $5.877 billion, but the company also said the global economic uncertainties and U.S.-China trade frictions pose risks to future performance.
In the first 6 months of the year ending June 30, gross profit increased by 3.1% to $1.824 billion.
Domestic sales increased by 18% to $4.178 billion, in addition to strong sales in India, Turkey and Germany, with the overall export business growing 13.5% to 1.58 billion yuan. Haitian said it was the best year of the company's performance in the first half of its history, but the company also pointed out some worrying factors. The company said: ' The global economy is still under some disadvantages, such as uncertainties in emerging markets, protectionism and geopolitical conflicts. We therefore remain concerned about the future of China and the global economy in the second half of 2018.
' Haitian sees no immediate solution to the US-China trade war, but believes it will affect the company's sales in the United States. The company clearly said: ' The Sino-US trade conflict has brought about macroeconomic uncertainties, and although we have taken various measures to reduce the negative impact of tariff increases, our sales in the US market will certainly be adversely affected. '
' Haitian does not announce sales for specific countries, but says sales in the US market have fallen slightly due to recent trade disputes.
Since July 6, the U.S. government has imposed a 25% tariff on plastic machinery imported from China. Domestic sales accounted for 71.1% of total sea-sky sales, compared with 70.3% in the first half of 2017.
The above figures were announced by Haitian on August 21 in Hong Kong, and Haitian Holdings is listed on the Hong Kong stock Exchange. Haitian report also showed that the small tonnage of all-electric injection molding machine and large-tonnage double-plate machine sales increased significantly. All-electric long fei ya injection molding machine sales increased by 30.6% to 680.5 million yuan, Haitian large double-board machine Jupiter Sales growth of 32.6%, to achieve sales of 835.2 million yuan.
The company's flagship model Mars series sales increased 10.9% to 3.91 billion yuan.
As part of the Industry 4.0 plan, Hai Tian announced the acquisition of Hangzhou Ke Qiang Intelligent Control System Co., Ltd. specializing in the production of injection molding machine control devices. Haitian's financial results also expressed concerns about the government's uncertainty about stabilizing the national economy to boost domestic consumption.
Like other Chinese-listed companies, the company said domestic investment slowed, liquidity fell, and government tightening of lending requirements were hampering domestic performance growth. The company said: ' The future growth of the domestic economy is expected to rely on domestic demand-driven, whether the realization is still uncertain. Domestic investment has slowed and inflation has risen, and some companies and local governments have been uncertain about the liquidity contraction in the context of tight regulation and leverage.
' The meagre growth in the sea-sky is attributed to rising raw material prices and a weaker renminbi. The company says strong dollar and interest rates inhibit the growth of emerging-market currencies. But Haitian is still bullish on emerging markets.
Last month, the company opened a 54000-square-foot sales, training and after-sales service center in Turkey.
Haitian's entry into Turkey in 1996 has since sold more than 10,000 injection moulding machines in the country, citing Turkish industry officials as saying the country is Europe's second-largest plastic processing market.
Haitian also opened a 210,000-square-foot assembly plant in India this April, located in Cuddy, India, which manufactures servo-hydraulic injection moulding machines with an annual output of 1800 injection moulding machines. Hai-Tian Semi-annual report performance is very impressive, but warning risk factors