Benefiting from the broad background of automation and intelligence and the steady development of the new energy vehicle business, Huichuan Technology, a leading domestic industrial control company, grew nearly 20% in the first half of 2023, and NEV revenue increased 44.81% year-on-year.

On the evening of August 21, Huichuan Technology released its 2023 semi-annual report.The company achieved revenue of 12.451 billion yuan in the first half of the year, an increase of 19.76% over the previous year; Belonging to shareholders of a listed companyNet profit of 2,077 million yuan, up 5.17% year on year; Basic earnings per share were 0.78 yuan, an increase of 4% over the same period last year. R&D expenses during the reporting period were 1.29 billion yuan, compared to 1 billion yuan in the same period last year, an increase of 28.92% over the previous year

According to the financial report, Huichuan Technology's main business is general automation (including industrial robots), smart elevators, new energy vehicles, and rail transit.

According to financial reports, in the first half of 2023,Demand in the industrial automation industry is sluggish, demand in the elevator industry is stable, and the NEV industry is growing rapidly. Thanks to its continuous layout in “optical, mechanical, electrical, liquid, gas” and other product fields, the advantages of the company's multi-product solutions have been further highlighted, further increasing the market share of the company's low-voltage inverters, servo systems, PLCs and other products.

General Automation sales increased 15.5% year over year, and NEV business sales increased 44.8% year over year

By business, general automation is still the main engine supporting the company's performance growth, and the contribution of the NEV business is growing rapidly.

The General Automation business achieved sales revenue of 6.855 billion yuan, an increase of 15.52% over the previous year. Among them, general inverters achieved sales revenue of 2,221 million yuan, general servo systems achieved sales revenue of 2,897 million yuan, and PLC & HMI achieved sales revenue of 785 million yuan.Industrial robots achieved sales revenue of 346 million yuan.

The smart elevator business achieved sales revenue of 2,368 million yuan, an increase of 7.33% over the previous year. In the first half of 2023, market demand in the elevator industry picked up slightly. The overall number of orders received was better than the number of elevators issued by the industry, and the smart elevator business achieved steady growth.

The NEV business achieved sales revenue of 2,967 billion yuan, an increase of 47.71% over the previous year.

Financial reports indicate that market competition in the NEV industry is fierce, product gross margins are generally low, and corporate profit levels are low. If competition in the NEV market further intensifies, it will affect the operating quality and profit level of the company's NEV business.

The rail transit business achieved revenue of 207 million yuan, an increase of 13.01% over the previous year. In the first half of 2023, due to the external environment, the construction progress of some urban rail transit projects was delayed. The subsidiary Jingwei Rail closely focuses on key projects of the year, continuously optimizes the operation mechanism for major projects, and actively promotes the layout and construction of rail transit business in various regions.

In terms of R&D, in the first half of 2023, R&D investment was 1,295 billion yuan, an increase of more than 28% over the previous year, and the R&D expenditure rate was 10.4%. By the end of the reporting period, the company had obtained a total of 3,067 patents and software copyrights.

By the close of trading on August 21, 2023, Huichuan Technology closed at 66.05 yuan, a decrease of 2.75%, and a market capitalization of 175.9 billion yuan.