① With high-end CNC systems and intelligent production line deployment, Huazhong CNC's net profit in 2023 increased by 45.7% year-on-year. ② Last year, the company calculated a total of about 90.71 million yuan in asset impairment preparations for 2023, reducing net profit by about 78.95 million yuan. ③ The company's three major industrial bases in Ezhou, Foshan and Wenling are being stepped up to expand production of high-end data systems and robots.
Financial Services Association, March 24 (Reporter Huang Lu) Q4 revenue and net profit increased in a single quarter. Huazhong CNC (300161.SZ) ended losses for the first three quarters and achieved profits throughout the year.
Tonight, Huazhong CNC released its annual report showing that in 2023, the company achieved operating income of 2,115 billion yuan, an increase of 27.13% (adjusted); net profit of 27.097 million yuan, an increase of 45.7% over the previous year (adjusted).
According to financial reports, the company achieved revenue and net profit of 818 million yuan and 60.7 million yuan in a single quarter, respectively, while in Q1-Q3, the company's net profit for each quarter was -38.54 million yuan, 3.43 million yuan, and 1.49 million yuan, respectively. The relevant person in charge of the company told the Financial Federation reporter that the company's business is seasonal, and year-end settlement confirmation is the norm. In previous years, the situation in the fourth quarter was (even) better.
In addition, the company estimates a total of about 90.71 million yuan for each asset impairment provision for 2023. The asset items for which asset impairment provisions are mainly accounts receivable, other accounts receivable, inventory, etc., and the estimated asset impairment preparation reduced net profit by about 78.95 million yuan.
By product, the company's CNC systems and machine tools accounted for 42.18% of revenue. Last year, it achieved revenue of 892 million yuan, an increase of 26.22% over the same period last year; robots and intelligent production lines accounted for 52.87% of revenue, and achieved revenue of 1,118 billion yuan last year, an increase of 35.53% over the same period last year.
Against the backdrop of the general manufacturing industry's overall recovery falling short of expectations in 2023, the company's revenue and net profit increased. On the one hand, the company's high-end 5-axis CNC system began batch support for key enterprises in the fields of automobiles, parts, laser processing, etc.; second, the company's industrial robots were used in batches in 3C and other industries, and entered new markets with strong demand for lithium batteries and photovoltaics.
The annual report shows that in the field of CNC systems and machine tool business, Huazhong CNC and major domestic machine tool manufacturers have achieved batch support. Downstream customers include Qinchuan Machine Tools, Shenzhen Genesis, Yuhuan, and Lansi Technology. When the company was previously surveyed, it was revealed that large-scale applications of high-end CNC products from 1 to 100 often face the problem of lack of application scenarios. The Huazhong Type 9 intelligent CNC system has been used in small batches by many domestic machine tool companies. The company maintains the growth of high-end CNC systems by adjusting the product structure.
Furthermore, with the horizontal expansion of downstream application fields in the industrial robot and intelligent production line industry, there is plenty of room for alternatives in the automotive and electronics industries. By introducing automated equipment and production lines, enterprises can reduce costs, improve production efficiency, and improve product quality. In the field of intelligent production line business, breakthroughs in performance are reflected in the fact that the subsidiaries Huashu Jinming and Huashu Jinming have cooperated with many leading companies in the field of new energy and logistics to sign and implement a number of intelligent production lines for power battery equipment. In addition, overseas markets received more than 500 million yuan in export orders during the reporting period.
According to data released by the China Business Industry Research Institute, China's industrial automation market reached 261.1 billion yuan in 2022, an increase of 3.2% over the previous year. It is predicted that in 2024, China's industrial automation market will increase to 301.1 billion yuan.
Huazhong CNC subsidiary Huazhong CNC (Nanjing) Research Institute and Xi'an Huashu have officially opened and put into operation; construction of the three major industrial bases in Ezhou, Foshan, and Wenling is being stepped up. The relevant person in charge of the company told the Financial Federation reporter that the Ezhou base is mainly expanding production of high-end data systems, while the Foshan base is expanding robot production.
Furthermore, according to the company's previous fixed increase plan, the company plans to raise 1 billion yuan in capital, mainly for the industrial robot technology upgrade and industrialization base construction project (Phase 1). After completion, the project will form a production capacity of 20,000 sets of industrial robots per year. The second is a five-axis CNC system and servo motor key technology research and industrialization project (phase 1), which is expected to produce 1,200 sets of five-axis machining center CNC systems, 500 five-axis lathe and milling composite CNC systems, 300 five-axis laser CNC systems, 2,500 sets of special five-axis CNC systems, 250,000 servo motors, and 50,000 linear motors per year.