Share This

Public company info - Huazhang Technology Holding Limited , 08276.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Huazhang Technology Holding Limited, 08276.HK - Company Profile
Chairman Zhu Gen Rong
Share Issued (share) 272,000,000
Par Currency Hong Kong Dollar
Par Value 0.01
Industry Machinery & Equipment
Corporate Profile Business Summary: The Group is principally engaged in the research and development, manufacture and sale of industrial automation systems and sludge treatment products and the provision of after-sales service in the People’s Republic of China (the “PRC”). Performance for the year: • Revenue of the Group increased by 9.5% from approximately HK$229,520,000 for the year ended 30 June 2012 to approximately HK$251,362,000 for the year ended 30 June 2013. • Gross profit of the Group increased by 11.4%, from approximately HK$64,349,000 for the year ended 30 June 2012 to approximately HK$71,673,000 for the year ended 30 June 2013. Gross profit margin of the Group increased from 28.0% for the year ended 30 June 2012 to 28.5% for the year ended 30 June 2013. Business Review: The industrial automation systems and sludge treatment products are custombuilt in accordance with the specifications and requirements provided by its customers. Moreover, the Group also engaged in the provision of after-sales services to its existing customers. Majority of its industrial automation systems are made from its self-developed software and hardware sourced from its suppliers, and are used in industrial production applications to improve production line efficiency by controlling the production process. Meanwhile, the Group also provide customers with hardware assembly services of automation system, which do not contain The Group’s self-developed software. The Group’s industrial automation system consists of the following four products: • drive control system; • distributed control system; • machine control system; and • motor control centre The sludge treatment products are dewatering systems which are also made from its self-developed software and hardware sourced from its suppliers and are used for the separation of solid from liquid in the handling of industrial waste in order to reduce sludge disposal costs and to meet the PRC government’s requirement for environmental protection. Depending on the specific demands of The Group’s customers, the Group also sells the hardware of sludge treatment products separately. The Group’s sludge treatment products comprise two categories, namely, filter press and steel-belt filter press. Industrial automation systems and sludge treatment products are made-to-order according to customers’ specifications and requirements. The Group also provides after-sales services to the existing customers of industrial automation systems and sludge treatment products. Depending on the requirements of the customers, the after-sales services include the provision of on-site engineering and maintenance services and/or the repair and replacement of spare parts and components. The Group believes that after-sales service will allow it to utilise The Group’s technical and engineering expertise and enable the Group to retain The Group’s customers and better understand their needs. The Group’s customers are mainly engaged in the PRC’s paper-making industry, in addition, some of the customers are engaged in other industries such as metallurgical and power industries. The Group conducts business on a project basis and all of the products are custom-made to meet the needs and specifications of The Group’s customers. .The Group identifies most of The Group’s potential projects through business discussions, although a few of them were identified through competitive bidding in open tenders marketed by tendering companies. The Group’s customers can usually choose the method of identifying suppliers at their discretion, unless they are required under the PRC laws to carry out competitive bidding. The group aims to improve the market position and customers’ awareness of industrial automation systems and sludge treatment products with unrelenting efforts. The Group recorded a steady growth in revenue for the financial year ended 30 June 2013. Prospects: Establish a general business division for expanding the market share of industrial automation control systems for non-paper making industries At present, revenue from the sales of automation systems in the paper-making industry accounts for approximately 96% of revenue from sales of automation systems, while the proportion of automation sales in non-paper making industry is insignificant, thus there is huge room for development. The Group will establish a general business division in 2014 aiming to explore the sale of automation control systems to non-paper making industries, such as metallurgy, electricity, chemicals and other industries, while specialized sales and technical staff will be allocated accordingly. The Group strives to improve sales of automation systems in the non-paper making industry so as to take up around 20% to 30% of sales of automation system within two years. Establish a motor distribution division that is mainly engaged in sales of inverter motor, fixed speed motors and high voltage motors At present, it is estimated that there are more than 2.5 million motors in the paper factories across the country. The demand for motors has increased sharply as obsolete capacity is phased out by the state and new projects come on stream. If the demand for motors in other industries is taken into account, the market potential is huge. The Group plans to establish a motor distribution division to expand its efforts in the following aspects: i) principally, the sales of inverter motors, fixed speed motors, high voltage motors and other types of motors; and ii) the seeking of partners and exclusive distribution rights and expansion in breadth. Thus far, the Group has entered into the “Framework Agreement on Industry Distribution” with a major motor manufacturer based in Shanghai, PRC, thus becoming the exclusively authorized distributor of that manufacturer in the paper-making industry. The Group will also cooperate with another major manufacturer based in Germany in motor areas so as to improve the types and production lines of motors. The major marketing strategies adopted at the early stage was to i) take advantage of The Group’s project resources to sell along with new projects of automation systems of Huazhang; ii) sell specifically to the existing automation customers of the Group in the paper-making industry; and iii) target at the entire paper-making industry (excluding automation customers of the Group in the paper-making industry). In the future, The Group will focus on the sales to customers in the non-paper making industry. Continue to expand the market of household paper and explore the business model of “System + Installation + Testing” From the year of 2011 to now, the growth rate of household paper has grown significantly to more than 17%. During the results period, the Group conducted projects with several leading manufacturer in paper-making industry. Nonetheless, it is expected the Group’s existing toilet paper projects will generate more sales. The Group plans to continue exploring the household paper market in 2014, and increase the share of household paper project in the sales of automation system. To develop household paper project is the long-term strategic direction of the Group in the future. The Group will actively obtain relevant qualifications for installation projects through the implementation of automation system projects and take advantage of the projects to provide one-stop “System + Installation + Testing” services. Continue to promote environmental protection business steadily With the completion of several technology sophisticated projects, the technology of all-extended high-pressure automatic membrane filter press (全曲張型高壓隔膜自動壓濾機) has been increasingly advanced with better squeezing results, efficient pie-discharging and obvious competitive advantages. It is expected that this series of filter press will record a more considerable sales volume in 2014. With the completion of certain steel-belt filter press projects, steel-belt filter press in the municipal sector and sludge drying BOT projects will hit recordedhigh sales volume. In the meantime, steel-belt filter press has gradually become mature after many improvements. Moreover, having concluded several filter press projects in metallurgy industry, it is expected that sales of filter press in that will improve, especially in the sales of non-ferrous metallurgy. With the delivery of export projects for large chemical groups to the U.S., the membrane filter press serves as a role model of filtering in alcohol trough while several projects are being followed up. The application of a number of new patents and new technology will help improve the competitiveness of products. The Group will continue to maintain the stable development momentum of the environmental protection business and strive to double its revenue in 2014 as compared to 2013.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.