Direct performance will | long-term hydraulics: currently full production has been supplied in small batches in the field of aerial work platforms

Financial Associated Press (Nanjing, reporter Wang Junxian) news, although listed for less than half a year, but the elderly hydraulic (605389. SH) 2021 semi-annual results briefing meeting with a large number of participants and enthusiastic questions from investors. The chairman of Changling Hydraulics, the secretary of the board of directors and other executives said in the interaction with the reporter and investors of the Financial Associated Press that the company is currently in full production and is gradually entering the aerial work platform industry, etc. The hydraulic slewing device for aerial work vehicles has been supplied in small quantities, and other new products are under development.

In the first half of this year, Changling Hydraulics increased its revenue without increasing profits, achieving operating income of 519 million yuan, an increase of 29.03% year-on-year, and achieving a net profit attributable to the mother of 120 million yuan, an increase of 3.71% year-on-year, and the company's gross profit margin level also declined.

In this regard, Xia Zemin, chairman of Changling Hydraulics, said that in the first half of the year, the company's revenue growth rate was basically the same as that of the construction machinery industry, and the main reason for the decline in gross profit margin was the rise in steel prices, and the sales expenses increased with the increase in business expansion.

It is reported that Changling Hydraulics responds to the fluctuation of material prices by reasonably adjusting raw material reserves and bargaining with customers. However, for the financial association reporter to ask the results of the negotiation price increase, Xia Zemin only answered with "the company has communicated with downstream customers about the price adjustment of products".

Dai Zhengping, secretary of the board of directors of Changling Hydraulics, further said to investors that with the decline in steel prices, the company's gross profit margin will rise, and the company's business will grow with the industry peak season in the second half of the year.

For the current production situation, Xia Zemin told the Financial Associated Press reporter that the company's current production orders have improved compared with the summer, the current capacity utilization rate is full load, and with the company's investment project investment, the production capacity will be further released.

In addition, the situation that the long-term hydraulic product line is relatively single has also attracted much attention. According to the data, the main products of long-age hydraulics are excavator central slewing joints, tensioning devices, etc.

For the company's single product doubts, Xia Zemin, chairman of Changling Hydraulics, told the Reporter and investors of the Financial Associated Press that on the one hand, the company's existing products were expanded to increase production capacity and expand sales, while actively developing export business. On the other hand, around the hydraulic industry to develop new products, expand new areas, research and development products are not limited to slewing joints and tensioners.

Xia Zemin also revealed to the Financial Associated Press reporter that the company is currently developing hydraulic components in the development and application of aerial work vehicles, offshore work platforms, other fluids and other fields. Hydraulic slewing joints for aerial work vehicles have been produced and supplied in small batches, and other new products are still under development.