Since entering 2023, based on the impact of macroeconomic, downstream demand performance is relatively weak, and Huichuan Technology’s business in the first quarter is facing a certain pressure.

During the period, Huichuan Technology achieved revenue of about 4.782 billion yuan, an increase of 0.07%; Net profit attributable to shareholders of the listed company was approximately RMB 747 million, an increase of 4.15% over the same period last year; However, after deducting non-profits, net profit returned to the mother of 625 million yuan, down 10.42%.

Song Junen responded to reporters that in December 2022 and January to February 2023, the company’s order growth rate was relatively low, resulting in basically flat revenue in the first quarter of 2023 compared to the same period last year; At the same time, although the gross profit margin rose year-on-year, the growth rate of the three expenses was higher than the growth rate of revenue, and the profit growth rate was also lower.

Song Junen admitted that the company is still facing some challenges in 2023, but in the past two years, the company has made more organizational adjustments and market extension, such a layout is more to build a more agile organization while growing in size, to cope with market changes, “Our business goal in 2023 is to increase operating income by 20%-40% year-on-year.” Net profit at home was up 10-30 per cent year on year.”

In the medium and long term, Song Junen remains optimistic about the development of the industrial control industry, “Manufacturing is the foundation of our country, and is the main battlefield for our economy to achieve innovation-driven transformation and upgrading.” Although China’s manufacturing has a pivotal position in the global industrial chain, the gap between China’s manufacturing industry and overseas is still huge in some areas, especially in the field of advanced manufacturing. In the process of catching up, industrial control-related industries have good development potential.”

In his view, the trend of manufacturing must be along the direction of automation – digitalization – intelligence.

Therefore, in order to provide customers with products and solutions that meet the development trend of the manufacturing industry and meet their intelligent transformation and upgrading, Huichuan is still strengthening the basic technology platform of “battery”, and building new product platforms such as energy products and industrial software products based on this, combined with Huichuan’s own change management experience and the output of digital transformation experience. Realize the customer value of smart factory transformation and upgrading.

In the field of new energy vehicles, since this year, with the decline of subsidies and the impact of demand factors, the new energy vehicle industry has fallen into volatility.

Song Junen admitted: “For this year’s market pattern, it is indeed because the overall growth rate this year is not as large as the growth rate in the past two years, so we want to grab this market share, each car factory will respond to some policies, such as looking for suppliers to negotiate prices, or consider self-developed power train and other key components.” This will put some operational pressure on us.”

In the face of problems such as product price suppression, Huichuan technology is also taking strategic measures to respond.

“For example, we are considering binding with the scale, or replacing the original brand by using domestic devices on some models, so that their own costs can be reduced and profits can be made to customers.” In terms of making key parts in the car factory, taking into account the different purposes of each Oems behind the self-made, we will adopt different cooperation models for different purposes to meet the real needs of customers.” Song Junen said.

Looking forward to the future, Song Junen pointed out that the company will focus on the above long-term development strategy, set a clear capital strategy, through industrial mergers and acquisitions, CVC funds, spin-off and listing and other ways, leverage refinancing, restructuring, bank loans and other multiple channels, by focusing on the upstream and downstream of the industry, build an industrial ecosystem, to achieve endogenous growth and extension of mergers and acquisitions mutual promotion. Drive the company to build new technologies, new products, new tracks and solution capabilities to support the company’s strategy.