Benefit from air-conditioning boom component company's main revenue increase

In the first half of the year, the boom of air-conditioners not only benefited the leading players, but also increased the revenue of the supporting parts and components industry. As a supplier to many leading air conditioner companies in China, Huasheng Co., Ltd., which mainly sells air-conditioning connecting components and air-conditioning power input components, announced today that the company’s operating income was 714 million yuan in the first half of the year and its operating profit was 49.36 million yuan. The net profit of the company's shareholders was 41.89 million yuan, which was an increase of 6.11%, 5.20%, and 11.03% respectively over the same period of last year.

According to the announcement, the company sold 56.64 million sets of all kinds of home appliances wiring components, and achieved an operating income of 714 million yuan. Compared with the same period of last year, the sales volume of the company's home appliance wiring components increased by approximately 6.09%, and its operating income increased by approximately 6.11%. The industry rebounded and the company increased its market expansion. The operating cost was 615 million yuan, a year-on-year decrease of 6.38%; sales expenses and administrative expenses rose 3.66% and 6.49% respectively over the same period of last year, which was mainly due to the increase in transportation costs and labor costs.

The company expects the net profit range from January to September to be 53.39 million yuan -69.27 million yuan, an increase of 0% -30% year-on-year. The company said that due to the recovery of the air-conditioning industry, the sales volume of the company’s products showed a growth trend and its performance will increase.

The mid-year report of Shunwei Co., Ltd., which mainly produces air-conditioner fans, showed that in the first half of the year, operating income was 68,447,100 yuan, up 8.35% year-on-year; net profit attributable to shareholders of listed companies was 4,148.56 yuan. For the third quarter of 2013, the company stated that it is expected that orders and profit levels that can fulfill sales revenue confirmation in the third quarter will be basically the same as the same period of last year.

Analysts believe that the two leading air conditioner companies Gree Electric Appliances and Midea Electric Appliances have always been major customers of Shunwei. The company has both mold design and manufacturing, and R&D production capacity for modified plastic formulas. The extension of the industrial chain enables the company to have better cost control capabilities. With the end of the energy conservation subsidy policy, the increase in industry concentration in the future will make quality customers become scarce resources. This will lay the foundation for the company's 2014 cold year orders.