(MENAFNEditorial) HONG KONG, Aug 31, 2016-(ACN Newswire)-Huazhong In-vehicle Holdings Company Limited ("Huazhong" or the "Company", stock code: 6830) and its subsidiaries (collectively, the "Group") announced today its unaudited condensed consolidated financial results for the six months ended 30 June 2016.
For the six months ended 30 June 2016, the Group's revenue was approximately RMB806,173,000, representing an increase of approximately 5.2% as compared to approximately RMB766,550,000 for the six months ended 30 June 2015. Profit attributable to the owners of the parent for the six months ended 30 June 2016 was approximately RMB34,721,000, representing an increase of approximately 18.9% as compared to RMB29,211,000 for the six months ended 30 June 2015.
Mr. Zhou Minfeng, the Chairman of the Board, re-affirmed that maximization of shareholder value, whilst adhering to the highest standards of corporate governance, will always remain our top priority.
Business Review
During the reporting period, the Group's revenue increased by 5.2% as compared to the corresponding period in 2015 due to the expansion of new market and customers and effective cost control measures. The revenue of the Group was primarily derived from five categories of products: (i) automotive interior and exterior structural and decorative parts (with revenue of RMB607,286,000, accounting for 75.3% of the Group's total revenue); (ii) moulds and tooling (with revenue of RMB39,874,000, accounting for 4.9% of the Group's total revenue); (iii) casings and liquid tanks of air conditioners and heaters (with revenue of RMB89,119,000, accounting for 11.1% of the Group's total revenue); (iv) non-automotive products (with revenue of RMB37,691,000, accounting for 4.7% of the Group's total revenue); and (v) sale of raw materials (with revenue of RMB32,203,000, accounting for 4% of the Group's total revenue). The overall gross profit margin remained stable at 26.7%.
In the first half of 2016, the sales volume of the top 10 automobile manufacturers reached approximately 5 million units during the first half of 2016, accounting for 80.11% of the overall vehicle sales in China. Out of the top 10 automobile manufacturers of which some of them have established business relationships with Huazhong. The solid partnership with industry leaders has provided a strong foothold for the Group to capture the growth of the automobile industry.
In 2016, the Group plans to expand business and coverage by constructing a new production facility in Qingdao.
Prospects
During the first half of year 2016, which is the starting point of China's 13th Five-Year Plan, the development of China's economy has always remained positive while the global economic environment getting uncertain. Hence, in the long run, China's automobile industry is expected to grow steadily in the coming five years. As it can be seen from the data of first half 2016, the auto industry successfully maintained stable growth. According to CAAM, the sales volume for the period from January to July 2016 increased by 9.8% compared with the same period of last year. The sales volume is estimated to grow continuously during the 3rd quarter.
Mr. Zhou concluded, "The Group will continue to implement its development strategy of "committing to product research and development and engineering and implementing strategic investments," and become a leading automobile body parts manufacturer in China in terms of reputation and market share. In addition to the traditional business, the Group commenced the development of in-vehicle products and target to launch it in the near future. We are cooperating with certain parties as part of the Group's strategic move to enter the mass market of automotive interconnection products and services."
About Huazhong In-Vehicle Holdings Company Limited
Huazhong In-Vehicle Holdings Company Limited is one of the principal suppliers of automobile body parts in China equipped with strong ability in production, product design and development. In particular, it has more than 10 years of experience in the mould development and application of LPIM, a more advanced, cost- and production-efficient and environmental-friendly technique for production of automobile internal decorative parts with fabric surface (such as ABCD-pillars and headliners) which are widely used as body parts for automobiles. The Company has a total of 16 factories, 15 of which are operating in different regions in China to serve the aforementioned automobile manufacturers. For further information, please browse the Company's website at www.cn-huazhong.com.
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