Domestic sales for Chain’s largest injection moulding machine maker, Haitian International, fell last year, but the firm’s bottom line was bolstered by a strong performance of its electric and two-platen machines.
Turnover dipped 3% to CNY7.34bn (£792m) for year ending 31 December, with domestic sales down 4% to CNY4.87bn (£526m). Despite sales growth in Europe, South Korea, India, Mexico and Vietnam, total exports were down 1.6% to CNY2.29bn (£247m).
Haitian said it sold 25,778 machines in 2015, down 4% year-on-year, while the average selling price for each machine edged up $2,000 (£1,406) to $278,000 (£195,000).
Operating profits grew 4% to CNY1.55bn (£167m) and the company attributed the gains to falling prices for raw materials and internal improvements that included an upgraded IT system, improved efficiencies in the manufacturing process and increased production capabilities – a 120,000 sq metre plant in suburban Ningbo was announced last May.According to Haitian director Helmar Franz the company is adding a production line for 1,000-tonne electric machines to the Chunxiao plant. Franz retired from his decade-long roles as Haitian’s executive director and chief strategy officer in January, but remains active on the company’s executive team.
Haitian’s Zhafir Venus line of full-electric machines grew 29.5% in financial terms, generating CNY678m (£73m) on 1,552 machines sold. This year’s Zhafir Venus 2+ models are incorporating a lightweight pre-plasticising unit, the company announced.
Sales of the company’s Jupiter two-platen machines jumped 39.8% to CNY741m (£80m). Meanwhile, the flagship Mars series comprised nearly 70% of Haitian’s sales. Enhancements in the past year to the Mars series includes graphite copper and steel bushing, which reduces maintenance costs.
Haitian executive director and chief executive Zhang Jianming touted the company’s strategic move to an “application-oriented sale model”.
“This marks Haitian’s transformation from a supplier of individual units into a supplier of a whole set of equipment plus overall solutions for our customers’ production,” he said. “We will further enhance our pre-sales and after-sales service network by setting up service and application centres and expanding overseas assembly plants.”Having weathered last year’s falling yuan and see-sawing stock market, Franz said the company could adapt to all but the most sudden and unexpected macroeconomic shocks.
Despite the downturn in sales, Franz remained bullish about the mainland’s economy. “Where is the crisis? Some people talk about ‘the turning point in China.’ What turning point are they talking about? This is a country with a 5,000-year-history.”
China was moving into a phase of smarter, more managed growth, he said.
“When the top-line growth is reducing, that doesn’t mean it’s bad for China. Because at the same time, the portion of this growth coming from internal consumption and efficiency gains is increasing.
"For the Chinese, it is a better, more sustainable source of growth,” Franz added.
