On July 26, Huichuan Technology released the forecast of the half-year performance in 2024, and it is expected that the revenue of the half-year in 2024 will be 15.563 billion yuan to 16.186 billion yuan, an increase of 25% to 30%, and the net profit of the mother will be 1.973 billion yuan to 2.181 billion yuan, a year-on-year change of -5.00% to 5.00%; Net profit withholding was 1.961 billion yuan to 2.148 billion yuan, an increase of 5.00% to 15.00%.

Regarding changes in performance, Huichuan Technology said:

1. During the reporting period, the company’s operating income maintained a rapid growth, mainly due to the rapid growth of new energy vehicle business income and the steady growth of General automation business income;

2. During the reporting period, the comprehensive gross margin of the Company’s products declined year-on-year, mainly due to the changes in the company’s product revenue structure and the intensifying market competition;

3. T8403CX During the reporting period, the company’s investment income and fair value change income decreased year-on-year, mainly due to exchange rate fluctuations and fair value change income of equity investment projects decreased year-on-year;

4. During the reporting period, the Company’s net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses increased steadily year-on-year, mainly due to: (1) The Company’s operating income increased rapidly year-on-year; (2) While investing heavily in internationalization, energy management, digitalization and other strategic businesses, the company has conducted overall control of expenses, and the growth rate of the company’s sales, management, research and development expenses is lower than the growth rate of revenue; (3) Due to the decrease in the provision for accounts receivable bad debts, the company’s credit impairment loss decreased year-on-year.

As a leading domestic industrial control enterprise, Huichuan Technology’s business is mainly divided into three major sectors: general automation, new energy vehicles & rail transit, and smart elevators, whose 2023 revenue accounted for 49.44%, 32.61%, and 17.39% respectively.

In the case of headwinds in the industrial control industry, Huichuan technology still achieved good growth.

T8403CX It is worth mentioning that on July 27, Huichuan Technology successfully acquired Irai, an industrial software company, adding a strong and colorful step to the journey of Industry 4.0.

Irai has more than 30 years of experience in mechatronics design and simulation, as well as virtual teaching, and has trained tens of thousands of new engineers for the world. These combined with the automation technology strength of Huichuan is bound to stimulate unlimited innovation sparks, and bring valuable virtual debugging simulation consulting services and terminal products to enterprises and education customers. It involves virtual debugging and simulation technology in many fields such as automatic control and debugging, industrial robot system, production line planning and analysis, product design and development, educational experiment courses, equipment operation training, machine maintenance and debugging, and equipment disassembly and assembly guidance.

Through the advanced technology of Irai, Huichuan will launch the Virtual Universe Pro (VUP) mechatronics simulation platform based on the latest virtual debugging and simulation technology.

Through this platform, Huichuan technology will help customers truly achieve the landing of digital factories. Various elements in the factory, such as production lines, equipment, products, etc., are set up digital twins, so as to achieve accurate simulation and optimization of the entire production process.

Huichuan Technology has always been committed to promoting industrial civilization, and with this acquisition as an opportunity, it will continue to deepen its strategic layout in the field of industrial software and digital twin, forming significant synergies with the company’s existing business segments, and greatly enhancing the competitiveness of the overall program.

Previously, Huichuan Technology said in the institutional research that from January to April 2024, the downstream demand for general automation showed a weak recovery trend, and Huichuan technology achieved good growth in orders in traditional industries such as injection molding machines, textiles, machine tools, air compresators, plastics, and logistics. It is expected that the demand for traditional industries will pick up slightly in 2024, and the company will grasp the relevant market opportunities to achieve better growth of general automation business.

In terms of new energy vehicle business, the income of Huichuan Technology’s new energy vehicle business comes from the contributions of three types of car enterprise customers: (1) ideal-oriented new power car enterprises; (2) Domestic automobile enterprises dominated by GAC and the Great Wall (manufacturers transforming from traditional vehicles to new energy vehicles); ③ Overseas car companies. The number of customers supporting the company’s business growth has increased compared to the past, and the customer structure has been further optimized.