In the first half of 2011, net profit of machine tool companies generally showed a downward trend

In the first half of 2011, China's machine tool industry achieved a sales value of 267.3 billion yuan, a year-on-year increase of 41.7%. However, from the mid-year report of the listed company of machine tools, although many companies have increased operating income, most of the net profits have shown a downward trend.

The leading enterprise in the industry, Shenyang Machine Tool, achieved operating revenue of RMB 5.172 billion in the first half of 2011, an increase of 18.61% year-on-year; net profit attributable to parent company was RMB 91.67 million, a year-on-year decrease of 43.47%.

Kunming Machine Tool Co., Ltd., a subsidiary of Shenyang Machine Tool Group, completed operating income of 755 million yuan in the first half of the year, a year-on-year increase of 14.15%; operating profit of 94.04 million yuan, a year-on-year decrease of 15.02%.

Although the performance is similar, there are differences in the causes. The sharp decrease in Shenyang Machine Tool's profit in the first half of the year compared with the same period of last year was mainly due to the fact that the substantial reduction in government subsidy income during the period resulted in a year-on-year decline in net profit. After deducting abnormal profits and losses, the net profit attributable to the shareholders of the listed company was 78.64 million yuan, a year-on-year increase of 108%. In addition, the high management cost of Shenyang machine tools is also another factor that erodes profits. Although the company’s fee rate during the first half of the year was 17.48%, which was lower than the 20.3% at the end of the previous year, it was still at a relatively high level.

Kunming Machine Tool Co., Ltd. said that the decline in sales of floor milling and boring machines has caused the company's operating income growth to lag behind the industry average. In the first half of the year, the company’s operating income increased by 14.15%, of which ordinary horizontal boring mills increased 29.87% year-on-year, and floor-type milled boring machines saw a year-on-year decrease of 21.27%. This way, it can be said that the proportion of traditional products increased, and the gross profit was higher. The unsatisfactory sales volume of floor milling and boring machines caused the company's overall gross profit to decline, which affected the company's profit margin.

The performance of East China CNC is somewhat similar to that of Kunming Machine Tool. In the first half of the year, East China Numerical Control Corporation realized operating income of 325 million yuan, an increase of 0.10% year-on-year; operating profit of 0.335 billion yuan, a year-on-year decrease of 45.43%. According to the announcement, the proportion of sales of small and medium-sized machine tool products rose from January to June, and the proportion of sales of large-scale machine tool products decreased. The average gross profit of small and medium-sized machine tool products was lower than that of large-scale machine tool products, resulting in a year-on-year reduction in overall operating gross profit, and with the operation The scale has been expanding year by year, resulting in a larger year-on-year increase in expenses such as financial expenses. At the same time, Weihai Huadong Heavy Equipment Co., Ltd., a wholly-owned subsidiary of the company, was in the preparatory period. Its holding subsidiary Weihai Huadong Heavy Industry Co., Ltd. was in early stage of production and suffered a large loss, which affected the efficiency of the consolidated accounting statements.

Over the past two years, thanks to the development of high-speed rail, the performance of East China CNC has been very hard. However, due to the impact of current policies on high-speed rail equipment, Huadong CNC only sold 1 high-speed CNC gantry machine tool in the first half of the year, compared with sales of 6 units in the same period last year, which resulted in a decrease in sales revenue of 62.52 million yuan and a decrease in profits of approximately 25 million yuan.

Although the performance of Shenyang machine tool data is normal, Shenyang Machinery Machine Tool Co., Ltd. emphasized in the announcement that the revenue contribution from CNC machine tools has continued to increase this year, accounting for 64% of machine tool revenue. The revenue of CNC machine tools has increased substantially, reaching 3.039 billion yuan, a year-on-year increase of 20.55%. The income from ordinary lathes and ordinary trampolines has increased slightly, with revenues of 753 million yuan and 456 million yuan respectively.

In addition, Shenyang Machine Tool Company is currently actively promoting the development of integrated, intelligent, and customized products, and advancing forward-looking technology research and development. In the near future, the company's products will focus on high reliability, intelligence, energy conservation, and environmental protection. Chemical, composite, precision. At present, the company has promoted the upgrading of products in accordance with the established guidelines, and has formed a pattern in which CNC machine tools represented by the new five categories are mainly products.

At the same time, the company's implementation of CNC machine tool components and vertical machining center industrialization projects will be put into operation. With the smooth production of CNC machine tools, it is expected that CNC machine tools will achieve faster development and will contribute to the company's revenue.