Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved revenue of 8.018 billion yuan in H1 2024, representing a year-on-year increase of 25.67%, driven by the recovery in demand for injection molding machines and global supply chain restructuring [3][8] - The gross profit margin slightly increased to 32.32%, while the net profit margin for shareholders decreased to 18.97% due to foreign exchange losses [4][11] - The company is enhancing its competitiveness through new product iterations, including the launch of a new generation of machines targeting both high-end and budget markets [14] - The overseas market presents significant growth potential, with the company having established a comprehensive global presence [14] Revenue and Profit Forecast - The company’s total revenue is projected to reach 16.33 billion yuan in 2024, with a net profit forecast of 2.992 billion yuan, reflecting a growth rate of 20.07% [2][15] - The earnings per share (EPS) is expected to increase from 1.56 yuan in 2023 to 1.87 yuan in 2024 [2][15] Financial Performance - In H1 2024, the company reported a gross profit of 2.592 billion yuan, with a year-on-year increase of 26.88% [3][8] - The company’s operating cash flow remained stable at 1.205 billion yuan, despite a 5.86% decline year-on-year [12][14] Market Position and Strategy - The company is positioned as a leader in the injection molding machine industry, with a strong focus on product innovation and market expansion [14][15] - The global injection molding machine market is significantly larger than the domestic market, indicating substantial growth opportunities for the company [14]

Financial Performance - For the six months ended June 30, 2024, the company's revenue reached RMB 8,017.8 million, an increase of 25.7% compared to RMB 6,380.2 million in the same period of 2023[3] - Gross profit for the same period was RMB 2,591.6 million, reflecting a 26.9% increase from RMB 2,042.5 million year-on-year, with a gross margin of 32.3% compared to 32.0% in the previous year[5] - The net profit attributable to shareholders for the six months ended June 30, 2024, rose to RMB 1,520.6 million, a 23.5% increase from RMB 1,231.3 million in the same period of 2023[3] - Basic earnings per share for the reporting period was RMB 0.95, up 23.5% from RMB 0.77 in the previous year[5] - The company reported a profit of CNY 1,520,630 thousand for the six months ended June 30, 2024, compared to CNY 1,231,279 thousand for the same period in 2023, reflecting a growth of 23.5%[13] - The gross profit margin increased by 0.3 percentage points to 32.3% due to lower raw material prices compared to the previous year[40] - Shareholders' net profit for the first half of 2024 rose to RMB 1,520.6 million, a 23.5% increase compared to the same period in 2023[59] Cash Flow and Financial Position - The net cash generated from operating activities was RMB 1,205.4 million, slightly down from RMB 1,280.4 million in the same period of 2023[5] - The company's net cash position, including financial products, was RMB 10,650.0 million as of June 30, 2024, compared to RMB 10,835.2 million as of December 31, 2023[5] - Cash and cash equivalents at the end of June 2024 were CNY 2,379,795 thousand, down from CNY 5,437,087 thousand at the end of June 2023, a decrease of 56.3%[15] - The group maintained a net cash position of RMB 4,367.1 million as of June 30, 2024, down from RMB 6,706.0 million as of December 31, 2023[61] - The group's bank borrowings amounted to RMB 2,116.7 million as of June 30, 2024, down from RMB 2,747.4 million as of December 31, 2023[60] Dividends and Shareholder Returns - The board of directors decided not to declare an interim dividend for the reporting period, pending a review of the full-year performance[5] - The company declared dividends of CNY 957,735 thousand for the six months ended June 30, 2024, compared to CNY 768,277 thousand in the same period of 2023, an increase of 24.7%[15] - The company decided not to declare an interim dividend for the reporting period, with the decision on the annual dividend to be considered after the annual performance review[8] Operational Efficiency and Strategy - The company benefited from the restructuring of the global supply chain and accelerated exports in certain downstream industries, particularly in consumer goods[5] - The company maintains a strong operational flexibility and efficiency, supported by robust working capital management capabilities[5] - The company plans to enhance R&D efforts and introduce more differentiated products to meet market demands, focusing on energy-efficient and intelligent new generation products[49] - The company aims to deepen its overseas market presence and increase the proportion of overseas sales, with new factories under construction as part of its global supply chain strategy[50] Assets and Liabilities - Total assets increased to CNY 30,329,173 thousand in June 2024, up from CNY 29,093,858 thousand in December 2023, representing a growth of 4.25%[10] - Non-current liabilities decreased to CNY 2,208,456 thousand in June 2024 from CNY 2,749,473 thousand in December 2023, a reduction of 19.66%[11] - Current liabilities rose to CNY 8,803,556 thousand in June 2024, compared to CNY 7,502,105 thousand in December 2023, an increase of 17.38%[11] - The company’s total liabilities increased to CNY 11,012,012 thousand in June 2024 from CNY 10,251,578 thousand in December 2023, an increase of 7.4%[11] - Total equity increased to CNY 19,289,943 thousand in June 2024 from CNY 18,816,089 thousand in December 2023, an increase of 2.5%[13] - The company’s retained earnings reached CNY 15,512,298 thousand as of June 30, 2024, up from CNY 14,949,403 thousand in December 2023, an increase of 3.8%[13] Sales Performance - Sales from mainland China reached RMB 5,182,546 thousand, up 33.7% from RMB 3,876,296 thousand in the previous year[27] - The total sales from Hong Kong and overseas countries were RMB 2,835,265 thousand, an increase from RMB 2,503,931 thousand in the previous year[27] - Domestic sales amounted to RMB 5,182.5 million, representing a 33.7% increase from RMB 3,876.3 million in the same period of 2023[42] - Overseas sales reached RMB 2,835.3 million, a 13.2% increase from RMB 2,503.9 million in the same period of 2023[42] - The company’s sales of injection molding machines accounted for 96.1% of total sales in the first half of 2024, with sales amounting to RMB 7,702.5 million, up 26.2% from RMB 6,105.7 million in the same period of 2023[43] - In the first half of 2024, the company's sales of injection molding machines increased by 26.2% to RMB 7,702.5 million, while parts and service sales rose by 14.9% to RMB 315.3 million[45] Expenses and Income - Selling and administrative expenses rose by 13.9% to RMB 1,142.3 million in the first half of 2024, primarily due to increases in sales commissions, labor costs, and R&D expenses[55] - Other income, mainly from government subsidies, increased by 24.3% to RMB 228.7 million in the first half of 2024[56] - Income tax expenses increased by 21.4% to RMB 333.3 million in the first half of 2024, with an effective tax rate of 18.0%[58] Accounting and Reporting - The company has adopted new accounting standards effective January 1, 2024, which may impact financial reporting but did not result in retrospective adjustments[23] - The group established an audit committee to oversee financial reporting and internal controls, comprising three independent non-executive directors[70] Other Financial Metrics - The company reported a decrease in financing costs, with net financing income rising to RMB 133.977 million from RMB 98.859 million year-on-year[6] - Net financing income for the same period was RMB 98,859 thousand, a decrease from RMB 133,977 thousand in 2023[29] - The income tax expense for the six months ended June 30, 2024, totaled RMB 333,343 thousand, compared to RMB 274,476 thousand in the previous year, reflecting an increase of 21.4%[29] - The group reported a foreign exchange loss of RMB 23,770 thousand for the six months ended June 30, 2024, compared to a gain of RMB 41,120 thousand in 2023[28]

Summary of Conference Call Transcript Company Overview - The company discussed is 海天 (Haitian), which has a stable shareholding structure and has successfully transitioned leadership through three generations, indicating a positive and proactive management approach [1] Key Points and Arguments - The leadership of Haitian is characterized as active and ambitious, which is seen as a fortunate aspect for the company as it has reached the third generation of leadership [1] Other Important Content - The complexity of relationships within the company is acknowledged, suggesting that there may be underlying dynamics that could impact future performance or governance [1]

Investment Rating - The report upgrades the investment rating to "Buy" with a revised target price of HK$27.50, up from the previous target price of HK$26.65 [2][3]. Core Insights - The demand for injection molding machines is showing signs of recovery, as indicated by recent company performance and customs data. The net profit forecasts for Haitian International for 2024-2026 have been adjusted to RMB 3.075 billion (+11.4%), RMB 3.257 billion (+9.2%), and RMB 3.215 billion (-0.2%) respectively [2]. - The gross margin forecasts for the same period have been adjusted to 33.4% (+0.9 percentage points), 33.0% (+0.4 percentage points), and 32.3% (-0.5 percentage points) [2]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are RMB 1.927 (+11.4%), RMB 2.055 (+9.2%), and RMB 2.009 (-0.2%) respectively [2]. - The target price corresponds to 13.3x, 12.5x, and 12.7x price-to-earnings ratios for 2024-2026, and a 2.0x price-to-book ratio for 2024 [2]. Financial Performance Summary - For the first half of 2024, revenue is projected to be RMB 7.75 billion, representing a 21.5% year-on-year increase. Gross profit is expected to be RMB 2.59 billion, with a gross margin of 33.4% [7]. - The net profit for the same period is forecasted at RMB 1.66 billion, reflecting a net margin of 21.4% [7]. - The company’s revenue for 2022 was RMB 12.31 billion, which increased to RMB 13.07 billion in 2023, and is expected to reach RMB 15.12 billion in 2024 [12]. Market Context - Haitian International's competitor, Lijin Technology, reported a 40.7% growth in its injection molding machine segment for the six months ending March 31, 2024, indicating a broader industry recovery [2]. - Strong export performance in the injection molding machine sector is noted, with exports amounting to RMB 5.289 billion in the first five months of 2024, a year-on-year increase of 14.1% [2]. - The company benefits from its overseas sales, which accounted for 39.4% of its revenue in 2023, positioning it well to capitalize on the recovery trend in the industry [2].

Investment Rating - Buy (首次) [1] Core Views - The company is a global leader in the injection molding machine industry with a 59-year history of stable family management [3] - The global injection molding machine market is valued at over 100 billion RMB with broad downstream applications [4] - The company leads the industry in revenue scale and profitability with a well-established overseas presence [5] - The company's strong R&D capabilities and differentiated product strategies enable it to capture market share across various segments [5] Company Overview - Founded in 1966, the company has grown into a global leader in the injection molding machine industry with a stable family management structure [3] - The company's revenue grew from 9.819 billion RMB in 2019 to 13.074 billion RMB in 2023, with a CAGR of 7.42% [3] - Net profit attributable to shareholders increased from 1.751 billion RMB in 2019 to 2.492 billion RMB in 2023, with a CAGR of 9.22% [3] - The company maintains a high dividend payout ratio of 30-40% and has a strong liquidity position with 11.2 billion RMB in cash and equivalents [3] Industry Overview - The global injection molding machine market grew from 12.5 billion USD in 2013 to 22.05 billion USD in 2022, with a CAGR of 6.5% [4] - The Chinese market grew from 21.16 billion RMB in 2016 to 26.35 billion RMB in 2022, with a CAGR of 3.7% [4] - The top three application scenarios for injection molding machines are general plastics (28%), automotive (26%), and home appliances (25%) [4] Competitive Advantages - The company is the global leader in revenue scale, with 12.31 billion RMB in 2022, surpassing competitors like Engel and Arburg [5] - The company has a well-established overseas presence with 6 regional management centers, 5 manufacturing centers, and 9 application service experience centers across Asia, Europe, North America, and South America [5] - The company's strong R&D capabilities enable it to launch new products every 5 years, with the latest fifth-generation models offering energy savings of 20-40% [5] Financial Projections - Revenue is expected to grow from 15.77 billion RMB in 2024 to 19.175 billion RMB in 2026, with a CAGR of 10.2% [2] - Net profit attributable to shareholders is projected to increase from 2.98 billion RMB in 2024 to 3.676 billion RMB in 2026, with a CAGR of 11.1% [2] - The company's Mars series is expected to grow at a CAGR of 18.7% from 2024 to 2026, driven by demand from the home appliance and daily necessities sectors [49] Valuation - The company's 2024-2026 PE ratios are 11x, 10x, and 9x, respectively, which are slightly lower than the average PE ratios of comparable companies [51] - Comparable companies include Yizumi (300415.SZ) and LK Technology (0558.HK), with average PE ratios of 12x, 10x, and 9x for 2024-2026 [51]

Investment Rating - The report upgrades the target price to HKD 30 and assigns a "Buy" rating for the company [2]. Core Views - The company is expected to benefit from the recovery of domestic and overseas demand, with a steady improvement in annual performance, including a revenue increase of 6.2% year-on-year to HKD 13.07 billion and a net profit growth of 10% to HKD 2.49 billion [1][2]. - The sales trend for the company's main products, particularly the Mars and Jupiter models, is showing positive momentum, with significant year-on-year growth in sales revenue and volume [1][2]. - The company has established a presence in high-growth markets such as India, Mexico, and Turkey, which is expected to enhance its market share [1]. Summary by Sections Financial Performance - The company reported a total revenue of HKD 13.07 billion for the year, with a gross margin of 32.1%, slightly up from the previous year [1]. - The net cash position stands at HKD 6.7 billion, indicating a strong liquidity position [1]. - The company plans to maintain a dividend of HKD 0.66 per share, a 20% increase year-on-year [1]. Sales and Product Development - The company has successfully promoted its fifth-generation machines, leading to a rebound in orders and sales, with total sales revenue for the Mars model reaching HKD 7.98 billion, a 9.5% increase year-on-year [1]. - The Jupiter model also saw a year-on-year sales revenue increase of 14.5% [1]. - Despite a decline in demand for the Chang Fei Ya electric model, there are signs of recovery in the second half of 2023 [1]. Market Outlook - The company achieved overseas sales of HKD 5.15 billion, a 17.3% increase, with Europe showing significant growth [1]. - Domestic demand remains stable, supported by government policies aimed at boosting consumption and equipment upgrades [1]. - The report anticipates a continued positive cycle of sales growth and equipment investment in the domestic market [1].

h 股 c r 票 a e s e R 研 y [Table_Title] Muyang Zhao 赵沐阳 究 tiu Company Report: Haitian International (01882 HK) 中文版 q (852) 25095375 E 公司报告： 海天国际 (01882 HK) Chinese version muyang.zhao@gtjas.com.hk 23 April 2024 政[Ta策ble刺_Su激mm下ar的y] 内需复苏，“收集” tr  我们维持“收集”评级，并上调目标价上调26.65港元。预计中国将通过扶持 公 o p 政策加大对制造业的支持力度。我们维持海天国际（“公司”）2024-2026年 [RTaabtlien_gR:a nk] Accumulate 司 e R y 股东净利润预测分别为人民币27.61亿元/人民币29.84亿元/人民币32.22 Maintained 报 n a 亿元。我们预计公司 2023 年/2024 年/2025 年的每股盈利分别为人民币 评级： 收集 (维持) p 告 m 1.730 元、人民币1.870元和人民币2.019 ...

Financial Performance - Revenue for 2023 reached RMB 13,069.3 million, a 6.2% increase compared to 2022 (RMB 12,308.2 million)[4] - Gross profit margin for 2023 improved to 32.1%, up from 31.8% in 2022[12] - Net profit attributable to shareholders in 2023 was RMB 2,491.5 million, a 10.0% increase from 2022 (RMB 2,264.7 million)[12] - The company's total sales revenue for 2023 reached RMB 13,069.3 million, a 6.2% increase compared to 2022[22] - Net profit attributable to shareholders in 2023 was RMB 2,491.5 million, a 10.0% increase from 2022[22] - Gross profit margin improved to 32.1% in 2023, up from 31.8% in 2022, due to lower raw material costs[25] - Shareholders' attributable profit reached RMB 2,491.5 million in 2023, a 10.0% increase from 2022[30] - Revenue for 2023 reached RMB 13,069,307 thousand, compared to RMB 12,308,186 thousand in 2022[169] - Net profit attributable to the company's shareholders was RMB 2,491,528 thousand in 2023, up from RMB 2,264,668 thousand in 2022[169] - Gross profit for 2023 was RMB 4,200,273 thousand, compared to RMB 3,917,529 thousand in 2022[169] - Operating profit for 2023 was RMB 2,788,096 thousand, compared to RMB 2,632,358 thousand in 2022[169] - Earnings per share (basic and diluted) for 2023 was RMB 1.56, up from RMB 1.42 in 2022[169] - Other comprehensive income for 2023 was RMB 82,347 thousand, compared to RMB 45,414 thousand in 2022[170] - Net profit for 2022 was RMB 2,264,668 thousand, contributing to a total comprehensive income of RMB 2,310,032 thousand[172] - Total equity value further increased to RMB 18,842,280 thousand in 2023, with net profit for the year reaching RMB 2,491,528 thousand[173] Sales and Market Performance - Domestic sales in 2023 remained flat at RMB 7,916.8 million, accounting for 60.6% of total sales[13] - Overseas sales in 2023 increased by 17.3% to RMB 5,152.5 million, representing 39.4% of total sales[13] - Overseas sales in 2023 increased by 17.3% to RMB 5,152.5 million, accounting for 39.4% of total sales[19][24] - The company exported approximately 39.4% of its products to international markets as of December 31, 2023, with sales primarily denominated in USD or other foreign currencies[35] - The company's sales network covers over 130 countries globally, with a strong presence in China[131] - The company emphasizes maintaining long-term, stable relationships with customers and suppliers for sustained business success and growth[131] Product and Service Sales - Injection molding machine sales accounted for 95.2% of total sales in 2023, reaching RMB 12,446.8 million[15] - Components and services sales grew by 15.7% to RMB 622.5 million in 2023[15] - The company's injection molding machine sales increased by 5.7% year-on-year to RMB 12,446.8 million in 2023[16] - Components and services sales grew by 15.7% year-on-year to RMB 622.5 million in 2023[16] - The company's fifth-generation injection molding machines, launched in August 2023, achieved energy savings of 20-40%[18] - The company's fifth-generation models, launched in 2023, reduce comprehensive operating energy consumption by 20-40% compared to third-generation models[54] Cash Flow and Financial Position - Operating cash flow in 2023 was RMB 3,278.2 million, a significant increase from RMB 1,780.6 million in 2022[7] - Total equity attributable to shareholders decreased to RMB 14,777.2 million in 2023 from RMB 17,011.1 million in 2022[6] - Cash and cash equivalents, time deposits, and restricted bank deposits totaled RMB 5,445.6 million, RMB 3,939.3 million, and RMB 68.6 million, respectively, as of December 31, 2023, compared to RMB 3,590.8 million, RMB 3,100.5 million, and RMB 35.2 million in 2022[31] - The company's net cash position improved to RMB 6,706.0 million as of December 31, 2023, up from RMB 5,291.2 million in 2022, reflecting a strong financial position[32] - Capital expenditures for 2023 amounted to RMB 1,175.9 million, a decrease from RMB 1,455.8 million in 2022, primarily for property, plant, and equipment, as well as land use rights[33] - Total assets increased to RMB 29,093,858 thousand in 2023, up from RMB 25,791,201 thousand in 2022[167] - Cash and cash equivalents increased to RMB 5,445,649 thousand in 2023, up from RMB 3,590,846 thousand in 2022[167] - Total equity increased to RMB 18,842,280 thousand in 2023, up from RMB 17,040,000 thousand in 2022[167] - Total liabilities increased to RMB 10,251,578 thousand in 2023, up from RMB 8,751,201 thousand in 2022[168] - Operating cash flow for 2023 was RMB 2,012,591 thousand, compared to RMB 1,780,608 thousand in 2022[175] - Investment activities resulted in a net cash outflow of RMB 701,957 thousand in 2023, compared to a net inflow of RMB 171,307 thousand in 2022[175] - Financing activities generated a net cash inflow of RMB 544,169 thousand in 2023, a significant improvement from a net outflow of RMB 1,953,691 thousand in 2022[175] - Cash and cash equivalents increased by RMB 1,854,803 thousand in 2023, reaching RMB 5,445,649 thousand at year-end[175] - The company acquired subsidiaries for RMB 104,151 thousand in 2023, with no such acquisitions in 2022[175] - Bank borrowings increased by RMB 2,531,456 thousand in 2023, compared to RMB 1,615,936 thousand in 2022[175] - Dividends paid to shareholders amounted to RMB 768,277 thousand in 2023, down from RMB 1,233,292 thousand in 2022[175] Dividends and Shareholder Returns - The company declared a total dividend of HK$0.66 per share for 2023, up from HK$0.55 per share in 2022[12] - The board declared a second interim dividend of HKD 0.66 per share for 2023, compared to HKD 0.55 per share in 2022, with the total annual dividend for 2023 also being HKD 0.66 per share[38] - The total interim dividend for 2023 was 66 HK cents per share[51] - The company declared a second interim dividend of 66 HK cents per share, totaling approximately RMB 955,355,000[104] - The total annual dividend will be 66 HK cents per share[104] Research and Development - R&D-related labor costs increased to RMB 245.9 million in 2023, up from RMB 231.5 million in 2022[26] - The company's fifth-generation injection molding machines, launched in August 2023, achieved energy savings of 20-40%[18] - The company's fifth-generation models, launched in 2023, reduce comprehensive operating energy consumption by 20-40% compared to third-generation models[54] Environmental and Sustainability Initiatives - The company's total hazardous waste decreased by 2.2% year-over-year in 2023[55] - The Tongtu Road division's rooftop photovoltaic project generated 23,262 MWh of electricity in 2023, with 17,151 MWh used by the division, accounting for 33.9% of its annual electricity consumption[55] - The South China factory's Phase I photovoltaic project, with a total installed capacity of 6,200 kW, is expected to generate 5,210 MWh annually upon completion in March 2024[55] - The company's MSCI ESG rating improved from BB to BBB in 2023[52] Corporate Governance and Board Structure - The company's Chairman and CEO roles are separated, with Mr. Zhang Jianming serving as Chairman and Mr. Zhang Bin as CEO, effective August 21, 2023[62] - The Board of Directors held a total of four meetings in 2023, with all executive directors attending all meetings[65] - The company has implemented mechanisms to ensure independent opinions and perspectives are obtained by the Board, with annual reviews of these mechanisms[66] - All directors confirmed compliance with the Model Code for Securities Transactions during the reporting period[67] - The Nomination Committee reviewed the Board's structure, size, and composition, and assessed the independence of independent non-executive directors[72] - The board consists of 9 male and 2 female members, aiming to achieve gender equality within approximately 10 years[73] - The audit committee held 3 meetings in 2023 to review financial reports and internal controls[76] - The remuneration committee reviewed and recommended compensation policies for directors and senior management[77] - The company's remuneration policy considers business requirements, individual performance, company profitability, and market conditions[78] - The remuneration committee consists of 3 independent non-executive directors and held 1 meeting in 2023[79] - Directors participated in continuous professional development programs categorized as types A and B[79] - The company provides training for new directors on regulatory responsibilities and updates on listing rules[79] - The company's internal control department reviewed major operational policies and regulatory compliance, identifying no significant areas of concern affecting business, financial processes, or data security[81] - The company adopted an anti-corruption policy and a whistleblowing policy to regulate employee and director conduct and provide guidance for reporting suspicious or actual misconduct[81] - The company's internal control department, established in 2012, assists the board in maintaining and reviewing risk management and internal control systems, reporting directly to the executive director[84] - The company's auditor, PwC, received RMB 2.49 million in audit fees and RMB 1.46 million in non-audit fees for the year ended December 31, 2023[85] - The company's company secretary, Ms. Li Jiawen, has over 18 years of experience in company secretarial and compliance roles and received at least 15 hours of professional training in 2023[86] - The company's dividend policy considers factors such as undistributed profits, long-term profitability, operating performance, cash flow, financial condition, and future prospects[87] - The company maintains an active investor relations policy through analyst briefings, roadshows, investor conferences, and regular meetings with institutional shareholders and analysts[88] - The company's 2023 Annual General Meeting was held on May 18, 2023, and an Extraordinary General Meeting was held on December 18, 2023, with directors attending both meetings[89] - The company has a shareholding policy for non-executive directors, requiring them to hold a minimum number of shares equivalent to the total granted over the past three years[92] - Non-executive directors have a three-year period to meet the shareholding requirements after their appointment, with a 12-month grace period for non-compliance[94] - The company has a clawback policy allowing the recovery of performance-based rewards from executives if financial statements are restated due to serious violations of listing rules[96] - The company maintains effective communication channels with shareholders and stakeholders, as outlined in its shareholder communication policy[91] - Shareholders holding at least one-tenth of the company's paid-up share capital can request a special general meeting, which must be held within two months of the request[90] - The company's board of directors has a designated team to monitor compliance with environmental regulations and engage experts for energy efficiency and waste reduction analysis[102] - The company's revised constitution allows for electronic or hybrid shareholder meetings, reflecting changes in corporate governance practices[97] Employee and Social Responsibility - The company employed a total of 7,382 employees as of December 31, 2023, with the majority based in China[37] - The company currently has 7,382 employees, including 836 females and 6,546 males, with a female-to-male ratio of approximately 1:7.83[74] - 87.23% of employees are from China, while 12.77% are from overseas[74] - Employee age distribution: 31.40% under 30, 32.74% between 30-40, and 35.86% over 40 years old[74] - The company invested RMB 79.88 million in the construction of the Haitian Youth Apartment project to help employees reduce living costs and improve quality of life[57] - Over the past three years, 2,036 employees have benefited from the company's talent apartments and public rental housing programs[57] - 100% of the company's employees received commercial ethics training in 2023, with 100% coverage for both employees and directors[56] - The company's charitable donations for the year amounted to RMB 9.68 million[113] Related Party Transactions - The revised annual cap for the purchase of servo systems and components from Haitian Drive and its affiliated companies in 2023 was RMB 1.36 billion, with actual purchases amounting to RMB 852.8 million[138] - The annual cap for purchasing intelligent products and services from Haitian Zhilian in 2023 was RMB 480 million, with actual purchases totaling RMB 304.5 million[139] - The company purchased CNC machine tools and machining centers from Haitian Jinggong for approximately RMB 11.0 million in 2023[141] - Haitian Drive is a connected party of the company, and the purchase agreements with Haitian Drive were renewed for three-year terms in 2014, 2018, 2021, and 2024[137] - Haitian Zhilian is a connected party of the company, and the purchase agreements with Haitian Zhilian were renewed for three-year terms in 2021 and 2023[139] - Haitian Plastic Machinery Group, a wholly-owned subsidiary, invested RMB 99.8 million in Haitian Zhisheng, with RMB 23.97 million allocated to new registered capital and RMB 75.83 million to capital reserves[143] - Other investors collectively invested RMB 243.2 million in Haitian Zhisheng, with RMB 58.41 million allocated to new registered capital and RMB 184.79 million to capital reserves[143] - The company's independent non-executive directors confirmed that the ongoing connected transactions were conducted under normal commercial terms and in the best interests of shareholders[139] - The company's auditors issued an unqualified opinion on the ongoing connected transactions disclosed in the annual report[140] - No directors held interests in businesses competing with the company or its subsidiaries as of December 31, 2023[135] - The registered capital of Haitian Zhisheng increased from RMB 398,000,000 to RMB 480,386,240 after the capital increase, with Haitian Plastics Machinery holding approximately 4.99%, other investors holding a combined 12.16%, and existing shareholders holding a combined 82.85%[144] - Haitian Management owns approximately 79.5% of Haitian Zhisheng and 44.7% of Ningbo Zhiche, with Mr. Zhang Jianming and Mr. Zhang Bin holding 40% and 60% of Haitian Management respectively[144] - The company engaged in continuous related party transactions with Ningbo Anxin CNC Technology, Ningbo Starfall Hydraulic Transmission, Ningbo Haimike Precision Machinery, and Ningbo Haitian Zhilian Technology for the purchase of servo systems, linear guides, ball screws, hydraulic components, and smart products and services[145] - The company also engaged in related party transactions with Haitian Jingong for the purchase of automated processing lines, CNC lathes, machining centers, and related equipment[145] - The company provided loans to some directors during the year, with these transactions exempt from the reporting, announcement, and independent shareholder approval requirements under the listing rules[145] Financial Statements and Auditing - The company's consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[163] - The company's directors are responsible for assessing the group's ability to continue as a going concern and disclosing related matters[163] - The audit committee oversees the financial reporting process of the company[163] - The auditors aim to obtain reasonable assurance that the consolidated financial statements are free from material misstatement, whether due to fraud or error[163] - The auditors evaluate the appropriateness of accounting policies and the reasonableness of accounting estimates and related disclosures[164] - The auditors assess the overall presentation, structure, and content of the consolidated financial statements, including disclosures[165] - The auditors communicate with the audit committee regarding planned audit scope, timing, and significant audit findings[165] - The auditors provide a statement to the audit committee regarding compliance with independence requirements[165] - The auditors identify key audit matters that are of most significance in the audit of the consolidated financial statements[165] - The independent auditor's report was issued by PricewaterhouseCoopers on March 18, 2024[166] - The consolidated financial statements were audited by PricewaterhouseCoopers, who confirmed their independence and compliance with professional ethical responsibilities[156] - The company applies the simplified method under HKFRS 9 to measure expected credit losses, using lifetime expected loss provisions for all trade receivables and notes receivable[158] - Management estimates impairment provisions for trade receivables and notes receivable based on aging patterns, customer credit and settlement records, and adjusts historical loss rates for macroeconomic factors[158] - The company's inventory is stated at the lower of cost and net realizable value, with provisions made for inventory where net realizable value is below cost[161] - Management assesses inventory impairment provisions item by item at each reporting date, identifying obsolete and slow-moving inventory, particularly items over one year old[161] - For finished

2024年3月21日 公司研究 23 年业绩稳步增长，设备更新与海外出口将推动业绩继续提升 ——海天国际（1882.HK）2023 年度业绩点评 要点 买入（维持） 当 前价：21.40港元 国内外投资及布局现成效，23年业绩逆势增长 海天国际发布2023年业绩公告，全年实现收入130.7亿人民币，同比增长 6.2%；实现归母净利润24.9亿人民币，同比增长10.0%；每股收益1.56元人 作者 民币。在国内下游需求恢复不达预期和全球产业链结构性调整的背景下，公司得 分析师：黄帅斌 执业证书编号：S0930520080005 益于国内外多年投资布局，全年业绩实现逆势增长。2023年公司综合毛利率为 0755-23915357 32.1%，同比上升0.3个百分点；净利率19.1%，同比上升0.7个百分点。公司 huangshuaibin@ebscn.com 2023年经营性现金净流入20.1亿人民币，同比增长13.0%。公司2023年每股 股息为0.66港元，股息率为3.1%。 分析师：陈佳宁 执业证书编号：S0930512120001 产品持续创新迭代，有望受益于下游设备更新大潮 021-52523851 c ...

Financial Performance - For the year ended December 31, 2023, the company's revenue reached RMB 13,069.3 million, an increase of 6.2% compared to RMB 12,308.2 million in 2022[2] - The gross profit for the year was RMB 4,200.3 million, reflecting a gross profit margin of 32.1%, up from 31.8% in 2022[4] - The profit attributable to shareholders was RMB 2,491.5 million, representing a 10.0% increase from RMB 2,264.7 million in the previous year[4] - Basic earnings per share for the year were RMB 1.56, an increase of 10.0% compared to RMB 1.42 in 2022[4] - The total comprehensive income for the year was RMB 2,576.99 million, compared to RMB 2,310.43 million in 2022[7] - The company's net profit attributable to shareholders for the fiscal year was RMB 2,491.5 million, a 10.0% increase from RMB 2,264.7 million in 2022, with a net profit margin of 19.1% compared to 18.4% in the previous year[41] Dividends - The board declared a second interim dividend of HKD 0.66 per share, up 20.0% from HKD 0.55 per share in 2022[4] - The company declared a second interim dividend of HKD 0.66 per share for the fiscal year, compared to HKD 0.55 per share in 2022[42] Assets and Liabilities - Total assets increased to RMB 29,093,858 thousand in 2023, up from RMB 25,791,201 thousand in 2022, representing a growth of approximately 8.9%[9] - The company's total liabilities increased to RMB 10,251,578 thousand in 2023, up from RMB 8,751,201 thousand in 2022, which is an increase of approximately 16.9%[10] - Cash and cash equivalents at year-end reached RMB 5,445,649 thousand, a significant increase from RMB 3,590,846 thousand in 2022, marking a growth of approximately 51.5%[13] - The retained earnings grew to RMB 14,949,403 thousand in 2023, compared to RMB 13,257,101 thousand in 2022, reflecting an increase of about 12.8%[12] Sales Performance - The sales revenue of injection molding machines and related products for 2023 was RMB 13,069,307, an increase of 6.2% from RMB 12,308,186 in 2022[23] - Domestic sales for the year remained stable at RMB 7,916.8 million, while overseas sales increased by 17.3% to RMB 5,152.5 million, driven by structural adjustments in global supply chains[43][45] - Injection molding machine sales accounted for 95.2% of total sales, with a year-on-year increase of 5.7% to RMB 12,446.8 million[46] Operational Efficiency - The company has maintained a continuous investment strategy, which has resulted in market share growth despite challenges in domestic demand recovery[4] - The company has seen a recovery in downstream demand, particularly in the automotive sector, which positively impacted sales in the second half of the year[45] - The company continues to focus on product innovation and market expansion, particularly in the consumer and daily-use product segments[45] Financial Management - The net financing income increased to RMB 234.1 million from RMB 130.7 million in the previous year[6] - The company's bank borrowings decreased significantly to RMB 244,934 thousand in 2023 from RMB 1,322,866 thousand in 2022, a reduction of about 81.5%[10] - The group’s bank borrowings as of December 31, 2023, were RMB 2,747.4 million, significantly higher than RMB 1,435.3 million in 2022[64] Capital Expenditures - The company reported a total capital expenditure of RMB 1,175,872 thousand in 2023, down from RMB 1,455,773 thousand in 2022, a decrease of about 19.2%[33] - The company has ongoing capital commitments for the acquisition of properties, plants, and equipment amounting to RMB 1,066.2 million, up from RMB 453.5 million in 2022[38] Employee and R&D Costs - The company’s employee costs related to R&D activities were RMB 245,888 thousand in 2023, up from RMB 231,531 thousand in 2022, an increase of about 6.2%[26] - Sales and administrative expenses rose by 12.0% from RMB 1,798.8 million in 2022 to RMB 2,015.3 million in 2023, driven by increased sales commissions, labor costs, and R&D expenses[59] Compliance and Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules during the fiscal year ending December 31, 2023[76] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls for the fiscal year ending December 31, 2023[77] Future Outlook - The company aims to enhance quality control and standardize processes in 2024, defining it as the "Quality Service Year" to improve customer satisfaction[49] - The company plans to continue expanding its overseas market presence, with overseas sales accounting for 39.4% of total sales revenue in 2023[53] - The company is constructing new factories domestically and internationally, with the new factory in India expected to be operational this year and the Serbia factory projected to start operations in 2025[53]