On July 31, Hongfa announced its 2019 semi annual report. Under the complicated and changeable external economic situation, Hongfa achieved an operating revenue of 3.407 billion yuan in the first half of the year, up 1.53% year on year. The net profit attributable to the shareholders of the listed company was 355 million yuan, down 3.42% year on year, and the net profit after deduction was 334 million yuan, down 2.96% year on year.
Hongfa has 30 years of relay R & D and manufacturing experience, and its products are widely used in home appliances, industrial control, automobile, smart grid, security and other industries. The company's relay products have more than 160 series and more than 40000 common specifications. In 2018, the company will produce more than 2 billion relays. In recent years, through the adjustment of product structure, the current effect is gradually reflected.
According to the semi annual report, the company's relay products continued to grow in the first half of this year. The fastest growing is HVDC relay, which is mainly used for new energy vehicles, with a year-on-year growth of 55%; Other products also maintained a growth trend: the cumulative domestic and foreign shipments of power relays increased by 23.50%, industrial control relays by 23.3%, and signal relays by 19%; According to the application requirements of relays, the shipment of sealed relays increased by 66%.
As the demand of home appliances, automobiles and other end markets slowed down significantly and competition intensified, the output of power relays decreased by 7.29% and that of Automobile Relays by 25%.
On the other hand, the company's new products showed explosive growth. Mass production of oxygen sensors and vacuum interrupters will be realized in 2017. Oxygen sensors will increase by 387% in the first half of 2018. On this basis, they will increase by 116% in the first half of this year; On the basis of 155% growth in the first half of 2018, the growth of vacuum interrupters in the first half of this year is 203%. In addition, the number of capacitors increased by 25.5% year on year.
Although the company lost some profits due to the impact of export tariffs to the United States, its export business to the United States still maintained a rapid growth of more than 20%. Among them, the United States kg company (Hongfa holding enterprise) increased by 36%, and the United States Hongfa company increased by 13%.
The company's economic benefits continue to maintain a good level. In the first half of the year, the comprehensive gross profit rate was 38.88%, 0.1 percentage point higher than that in the same period of last year, and the sales revenue per capita was 330000 yuan, 8% higher than that in the same period of last year.
It is worth mentioning that on July 20 this year, the information center of China Electronic Components Industry Association released the list of China's top 100 electronic components enterprises in 2019. Hongfa has been ranked among China's top 100 electronic components enterprises for 25 consecutive years, ranking 13th in 2019 and the first in relay field.
In the first half of 2019, power relay, HVDC, industrial control, sealed relay and other products will grow rapidly. The specific performance is as follows
(1) The company's power relay business has ended its adjustment in the past two years. With the acceleration of the second round of reloading of China national grid, and the further increase of the market share of overseas French, British and American networks, the company's main product metering magnetic relay has shown a rapid growth trend. In the first half of the year, the cumulative domestic and foreign shipment of power relay increased by 23.50% year on year.
(2) In recent years, the high-voltage DC relay has achieved remarkable results in developing high-end customers. In addition to occupying 40% of the market in China, it has obtained the certificates of major suppliers for major projects such as Land Rover, Porsche, Volkswagen MEB, Mercedes Benz, Ford, Tesla and Samsung batteries in overseas markets. In the first half of the year, with the promotion of new projects and the steady increase of market share, the high-voltage DC relay has achieved remarkable results, Continue to show rapid growth, in the first half of 2019, the cumulative shipment increased by 55% year on year.
(3) The industrial control relay benefits from the good market environment formed by the state's vigorous promotion of industrial automation industry upgrading and transformation. In the past two years, the company has increased investment in industrial control product technology development and achieved actual results. The product quality level is close to the level of industry benchmark enterprises, supporting Siemens, Mitsubishi, Schneider and other customers, and the overall competitiveness has been significantly improved, In the first half of the year, the cumulative shipment of industrial control relays increased by 23.3%（ 4) In the first half of 2019, the company's sealed relay product delivery increased by 66% year on year.
In the first half of 2019, signal relays and low-voltage switches will maintain a steady growth. The specific performance is as follows
(1) Signal relays can be widely used in the Internet of things and smart home, mainly due to the steady rise of project demand in the field of security. At the same time, it has made breakthrough progress in the field of industrial testing and medical detection equipment. In the first half of the year, the cumulative shipment of signal relays increased by 19% year on year.
(2) In the first half of 2019, the company will continue to vigorously promote the development of low-voltage switch business. On the one hand, it will focus on accelerating the research and development of new products and the improvement of product quality, comprehensively combing the manufacturing process including front-end parts, and gradually building the core competitiveness of main production links of low-voltage switch; On the other hand, we continue to focus on the domestic and foreign industry benchmark customers, and the product introduction and quantity work gradually show results. In the first half of the year, the cumulative shipment of low-voltage switchgear and equipment increased by 15.3% year on year.
In the first half of 2019, the overseas market demand of power relay grew steadily, but in the first quarter, the domestic white power market and international relay giants took the lead in provoking fierce market competition, and the market situation gradually stabilized from the second quarter. In the first half of the year, the cumulative shipment of power relays decreased by 7.29%. With the growth of market scale of smart home industry and the increase of inverter supporting demand, it is expected that the market will stabilize and consolidate in the second half of the year and wait for recovery;
In the first half of 2019, the demand of major global automobile markets will decline, especially the overall decline of domestic automobile market will exceed the expectation, and the company's automobile relay market and customers will have a huge impact. In the first half of the year, the cumulative shipment decreased by 25%. In the second half of the year, the company will strengthen the promotion of new customers such as Benz and bosh to prepare for the follow-up. With the end of auto market adjustment, the auto relay business of the company is expected to gradually improve in the second half of the year and continue to narrow the decline. At the same time, the company is actively looking for suitable targets to enhance its overseas market share as soon as possible through extensive expansion.
In the first half of 2019, the company's new products, such as automotive application electronic products, vacuum pumps, vacuum interrupters, connectors, film capacitors, oxygen sensors and other products, will accelerate the industrialization process in the first half of 2019 by increasing market promotion, accumulating engineering cases and supply experience, exploring and improving market channels, and gradually reflecting the effect of product structure adjustment. The delivery of vacuum interrupters increased by 203% year on year; The delivery of oxygen sensors increased by 116% year on year; Capacitors increased by 25.5% year on year.
Although since July 2018, the company has suffered a certain loss of profits due to the impact of export tariffs to the United States, relying on its strong technology research and development, quality management and comprehensive service capabilities, the company's export business to the United States has maintained a rapid growth of more than 20%, of which the United States kg company (Hongfa holding company) has a year-on-year growth of 36%, and the United States Hongfa company has a year-on-year growth of 13%.