Like other Chinese producers of injection-moulding machinery, Haitian International Holdings (Hong Kong; www.haitian.com) went through a difficult time in 2008. Sales slipped 3.4% year-on-year to EUR 401m and pretax profit fell to EUR 45.3m (EUR 62.2m in 2007). Net profit was EUR 44.3m compared with EUR 61.7m in 2007.

Sales volumes grew only slightly in the first half of 2008 and were “hit by the drastic market downturn” in the second half according to Haitian’s CEO Zhiang Jianming. Some customers postponed investment projects until after 1 January 2009 to benefit from a change in the VAT system and this had a clear impact in the fourth quarter of 2008. Small machines were worst affected, resulting in a 12.4% year-on-year drop in sales to EUR 242m. In contrast, sales in the medium to high clamping force range rose by 13.9% year-on-year to EUR 150m.

Although Haitian raised prices 6% during the year, that was not sufficient to offset the rising cost of steel. Zhiang is not optimistic about 2009: "We expect our business performance this year may be worse than in 2008" he writes in the company’s annual report. However the medium to long-term outlook remains good due to Haitian’s sound fundamentals.

e-Service:
Annual report of Haitian International for 2008 as a PDF document (600 KB)