The Haitian International Holdings Ltd. bundles synergies

Management targets to become world leaders with the ‘Haitian’ and ‘Zhafir’ brands

(19-09-2007, Amberg) Since the very successful listing of the Haitian International Ltd. in December 2006 it represents the entire injection molding business of the Ningbo Haitian Group Co., Ltd. In 2006 the Holding delivered about 18,000 machines for the standard market. Approximately 30% of sales was for export to over 80 countries. For 2007, Haitian International has planned sales increase of more than 20% for the international market including China. 

‘It is our vision to lead the world market, in the number of units as well as in turnover’, is the goal according to Mr. Zhang Jingzhang, Chairman of Haitian International. As an important milestone in this process, 91% of the German company Zhafir Plastics Machinery GmbH in Ebermannsdorf was acquired in August 2007. The company will act parallel to Haitian Plastics Machinery Ltd. in the holding structure in the future. Haitian International Executive Director Prof. Helmar Franz holds the remaining 9% as CEO of Zhafir Plastics Machinery GmbH. This acquisition complements the global expansion strategy of Haitian International to a two-brand model: While Haitian Plastics Machinery Ltd. continues to lead the market in terms of sales volume and covering the standard applications in the industry, Zhafir Plastics Machinery GmbH, as an individual brand, is focused on fully electrical molding machines for the respective high-tech applications. Within the course of this strategy, a new corporate identity as well as the restructured product positioning will be implemented as of October 2007 (see the attachment).

Integration of Zhafir Plastics Machinery GmbH into the Holding

The integration of the premium brand ‘Zhafir’ at this time consequently follows the newly justified Holding strategy, to position itself in the dynamically growing segment of premium users as a supplier of precision machines. Zhafir optimized the fully electrical HTD series and technologically adapted it to the international requirements. This machine will be introduced to the market as ‘Zhafir Venus Series’. A marketing research study of field test machines with Chinese customers delivered positive results concerning the marketing possibilities of the Zhafir Venus Series. The study predicted a current market volume for such machine concepts in China of approximately 5,000 to 6,000 machines and approximately 2,500 units for the remaining international market outside of Asia. Consequently, the fully electrical Zhafir Venus Series will be completely integrated in the Zhafir portfolio as of the end of October. In a second project with the ‘Zhafir Mercury Series’, the Zhafir team leaded by Dipl. Ing. Steffen Franz is developing an innovative fully electric machine generation with revolutionary solutions for high-end market.

The incorporation of Zhafir furthermore follows the economical logic. The production process for both series ‘Mercury’ and ‘Venus’ will be integrated. The infrastructure thereof is already in planning and will be realized with the complete support of the Holding. To response the market requirements, Haitian International will in addition to building the Zhafir premises in Ebermannsdorf establish the Ningbo Zhafir Plastics Machinery Co., Ltd. It starts immediately with the production of the ‘Zhafir Venus Series’. Later Ningbo Zhafir will accordingly compliment the production capacities of the Zhafir Group. Deputy General Manager of Ningbo Zhafir, Mr. Fu Nanhong, has been responsible together with the German specialists for the optimization of the HTD series to ‘Zhafir Venus Series’.

About Zhafir Plastics Machinery GmbH

As a German subsidiary of the Haitian International Holdings Ltd., Zhafir Plastics Machinery GmbH develops innovative injection molding machine concepts for high-end users in the premium segments, such as for instance medical and high precision applications. These high performance precision machines are featured exclusively with high quality machine components. The design of the Zhafir products is based on high standardization and assures in this manner highest possible performance with complete reliability, high efficiency and environmentally friendly aspects. As a premium brand, Zhafir is a substantial growth incentive of the Holding strategy and acts independently with the direction of Prof. Helmar Franz, CEO of Zhafir Plastics Machinery. Apart from the development, the assembly of both fully electric lines ‘Venus’ and ‘Mercury’ will be installed in Ebermannsdorf in the near future.

About Haitian Plastics Machinery Ltd.

As a subsidiary of the Haitian International Holdings Ltd. Haitian Plastics Machinery Ltd. practices the continuous development of its position as a world market leader. Thereby the company focuses on injection molding machines in a strong growing market for standard applications and hereby uses highly efficient and standardized production and assembly processes. The machine construction and the built in components qualify Haitian machined in respect of high quality workmanship, enormous robustness and a long working life. The products fulfill all relevant international safety standards, are cost competitive, energy efficient, easy to use and are characterized by their minimal amount of maintenance with high production quality. A global distribution and service network assures accessible support in all time zones and languages. With the newly ‘Haitian Mars Series’ (previously J5), Haitian closed the gap between fully hydraulic and fully electrical machines. This energy saving concept at an affordable price should create advantage for the customers and offers growth potentials for Haitian International in the global markets.

ABOUT HAITIAN INTERNATIONAL HOLDINGS LTD.

The Haitian International Holding develops, produces and distributes injection molding machines under the brands ‘Haitian’ and ‘Zhafir’ and provides to its worldwide customers comprehensive support services. The Holding was listed on the Main Board of the Hong Kong Stock Exchange on 22 December 2006 for the first time (WKN A0LGD0, ISIN KYG4232C1087). The total sales of the Holding amounted to CNY 3,175 billion (EUR 308 Mio.) in 2006 and within the first 6 months of 2007 has reached CNY 1,889 billion (EUR 183 Mio.). In comparison to the half year of 2006, the turnover as well as the profit both rose by more than 20%. This shows significant growth in sales and profit for the fiscal year 2007 in comparison to 2006. On 30-06-07 a dividend pay out HKD 0.09 for the Haitian investors has been decided by the board. The share value of Haitian International has developed very positively on the stock exchange in Hong Kong.

Accounting ratio

30-06-06 31-12-06 30-06-07
Sales EUR 151,803,540

(CNY 1,566,600,000)

 

EUR 307,725,330

(CNY 3,175,700,000)

EUR 183,053,790

(CNY 1,889,000,000)

Profit attributable to share holders EUR 23,083,518

(CNY 238,220,000)

EUR 45,504,240

(CNY 469,600,000)

EUR 27,809,331

(CNY 286,990,000)

Exchange rate, Status 03-09-07: EUR 1.00 = CNY 10.2777

 

Market trend

Opening price 10-09-07
HKSE HKD 3.95 (22.12.06) HKD 5.6 + 40.0%

 

Haitian- and Zhafir-Machine portfolio (starting October 2007)

Previously New Description
Zhafir Mercury Series Innovative Machine generation of the future – fully electric system, revolutionary solution on the injection side
HTD Zhafir Venus Series 400 to 4,000 kN

Fully electrical solution with high quality components and best performance data

J5 Haitian Mars Series 600 to 60,000 kN

Energy and water saving solution for precision usage

HTK Haitian Jupiter Series 12,000 to 60,000 kN

Space saving two platen technology with flexible fitting on long strokes

HTFW /

HTFX

Haitian Saturn Series 600 to 40,000 kN

Robust, reliable solution with extensive options, covering more than 80% of all applications

HTS Haitian Lapetus Series 1,600 to 3,000 kN

Cost effective two component technology based on the proven Haitian Saturn Series

HTH Haitian Uranus Series 1,600 to 13,000 kN

Robust machine design, fast running machine for short cycles

Tian Jian Haitian Pluto Series 860 to 5,300 kN

Cost effective standard solution for simple injection molding tasks

Press Contact:

Haitian International Holdings Ltd.

Mrs. Liza Meng

Phone: +86 574 861 826 23

Email: mengjiehua@gmail.com

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