Hengdeli Holdings Limited (“Hengdeli” or the “Company” and, together with its subsidiaries, the “Group”; stock code: 3389) announced its interim results for the six months ended 30 June 2024 (” the period under review”).
In the first half of 2024, the global economy was still confronted with multiple pressures such as geopolitical conflicts and inflation risks. China’s economic growth slowed down, while overall operation remained stable and the trend of stabilization continued. In the face of a relatively complex operating environment, under the principle of “sound, steady and long-term operations”, the Group adapted its business to the market conditions and strived for the survival and health of the enterprise to safeguard the interests of its shareholders.
During the review period, the Group recorded revenue of RMB580,361,000 (six months ended 30 June 2023: RMB675,621,000), representing a year-on-year decrease of 14.1%; high-end consuming accessories business recorded revenue of RMB352,339,000 (six months ended 30 June 2023: RMB316,992,000), representing a year-on-year increase of 11.2%; commodity trading revenue amounted to RMB228,022,000 (six months ended 30 June 2023: RMB358,629,000), representing a year-on-year decrease of 36.4%. During the period under review, the Group recorded a profit of RMB499,000 (six months ended 30 June 2023: loss of RMB8,799,000), representing a year-on-year increase of 105.7%. Loss attributable to equity shareholders amounted to RMB2,504,000 (six months ended 30 June 2023: loss of RMB1,985,000), representing a year-on-year increase of 26.1%. The increase in loss was mainly attributable to the increase in depreciation expenses on property, plant and equipment and foreign exchange losses incurred by the operating units as a result of exchange rate fluctuations.
During the period under review, in regards of high-end consuming accessories business, the Group took various measures to cope with complicated operating environment. The Group laid a solid foundation to maintain stability, sought development driven by innovation, continuously broadened its business modes, enhancing the level of technological innovation, the Group standardized and strengthened its informational and automatic management, all measures mentioned above achieved remarkable results. During the period under review, the high-end consuming accessories business achieved remarkable results, with better growth in both revenue and profit.
In terms of international trading, during the period under review, the sales and profit of the international commodity trading business decreased as compared to the same period last year as a result of decline in the selling price of ore sand and the lower purchasing intention of customers, but still maintained a positive profitability. During the period, the Group planned to build a bulk cargo transshipment logistics park in Mexico, which integrates customs clearance, import, transportation and warehousing, and is dedicated to serving large-scale enterprises in China. In terms of international shipping, during the period under review, the global dry bulk shipping market performed strongly. The Group seized the opportunities of the rising market to vigorously expand its business by developing new customers and signing long voyage transportation contracts with its customers to lock in long-term profits for the Company. In addition to engaging in the traditional transportation routes, the Group opened up its first bauxite transportation route between Turkey and China and signed long-term transportation agreements with renowned companies in Turkey, which yielded relatively satisfactory returns. The Group’s shipping business achieved good results in terms of revenue and profit in the first half of the year.
At present, the global political situation is still experiencing a high degree of unrest, and the instability and uncertainty of the economic environment are on the rise. While the recovery of the mainland Chinese economy is evident, factors such as the deepening of structural adjustment will continue to pose new challenges. However, the favorable conditions for the economic development of Mainland China outweigh the unfavorable factors, and the trend of stable and long-term development remains unchanged. As the effects from the government’s various economic policies and measures materialized, it is believed that China’s economic growth momentum will continue to rise.
In the second half of the year, the Group will continue to adhere to the principle of “sound, steady, and long-term operations”, and will leverage the stable business environment in Mainland China that “pursues stability while seeking progress” to keep abreast of the market trend and further advance the process of international trade steadily. Additionally, the Group will continuously expand and strengthen the international shipping business, which is closely related to international trade, and strive to become a stronger participant in the international shipping supply chain and achieve new breakthroughs in corporate development.
The Group will continue to adapt to market demands and continuously enhance the service standard of its integrated services for commercial space in both Mainland China and international markets. The Group will also continuously adjust the manufacturing of high-end accessories for renowned watches while embarking on a limited number of diversified business activities including the manufacturing of high-end consuming accessories in highend lifestyle products such as jewellery, cosmetics and mobile phones, and expanding its commercial space beautification services to include living space beautification services, thus becoming an indispensable independent segment in the industry ecological chain of high-end consuming accessories.
Topic: Press release summary