①The company achieved a year-on-year growth of 8.56% and 0.71% in revenue and net income respectively in the first half of the year. ②Jiangsu Hengli Hydraulic revealed that the construction of the Mexican factory has entered the final stage, laying the foundation for expanding into the Americas market.
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Caixin News, August 26th (Reporter Huang Lu) The domestic excavator demand rebounded in Q2, combined with the sustained growth in overseas income, Jiangsu Hengli Hydraulic (601100.SH) saw a positive growth in revenue and net income in the second quarter.
Tonight, Jiangsu Hengli Hydraulic released the half-year report for 2024. The company achieved a first-half revenue of 4.833 billion yuan, an 8.56% year-on-year increase; and a net income of 1.288 billion yuan attributable to shareholders of the listed company, a 0.71% year-on-year increase.
Looking at the quarterly performance, the company's Q1 single-quarter revenue was approximately 2.362 billion yuan, a 2.7% year-on-year decrease; achieving a net income of approximately 0.602 billion yuan, a 3.77% year-on-year decrease. The company's profitability rebounded in Q2, with a single-quarter revenue of approximately 2.471 billion yuan, a 22.05% year-on-year increase; and a net income of 0.686 billion yuan, a 5.0% year-on-year increase.
In the first half of this year, the company's cost of goods sold increased by 3.89% year-on-year, which is nearly 5 percentage points lower than the H1 revenue growth rate. The company stated that, based on 2023, it continues to carry out cost reduction projects. As of the end of June 2024, over 300 cost reduction projects have been implemented. In addition to the multi-dimensional cost reduction, the interim report mentioned two major revenue-generating strategies: one is the implementation of a diversified product strategy; the other is the expansion of overseas markets and the promotion of overseas production capacity layout.
The financial report shows that in the first half of the year, the company sold a total of 0.1389 million non-standard cylinders for heavy equipment, an increase of 21.53% year-on-year. Among them, the sales revenue of non-standard cylinders for shield machines, lifting equipment, and swing cylinders for high-altitude work platforms achieved rapid growth; and non-excavator pump valves increased by 24.30% year-on-year.
In addition, Jiangsu Hengli Hydraulic stated that while stabilizing the domestic market, the company is advancing the layout of overseas production capacity. In the first half of this year, the company's overseas revenue achieved a year-on-year growth of 15.29%.
According to the financial report, the company's sales expenses in the first half of the year increased by 32.50% compared to the same period last year. In response, the company explained that the increase was mainly due to the development of overseas markets and increased business expenses. In the interim report, Jiangsu Hengli Hydraulic also revealed that the construction of the Mexican factory is nearing completion, laying the foundation for the development of the Americas market.
It is worth mentioning that on August 9th, the company announced that on August 5th, around 15:30 local time in Mexico, a partial fire accident occurred in the under-construction factory building of its wholly-owned subsidiary Hengli Mexico. The factory building is currently in the construction process and has not been completed and handed over. This accident may cause a delay in the overall production progress of the Mexican factory.