Gelonghui November 10th 丨Tsugami Machine Tool China (01651.HK) announced that for the six months ended September 30, 2023, the total revenue of the group was about RMB 1,494 million, a decrease of about RMB 706 million from the same period last year, a decrease of about 32.1%. The main reason for the decrease in total revenue is that the Chinese economy is generally in a downward cycle, the industry continues to be weak, the customer operating rate is insufficient, and demand for procurement equipment has declined. As a result, demand for CNC machine tools has declined, and the company's orders and shipments have declined. (i) Precision lathe sales volume decreased by about RMB 616 million, a decrease of about 32.8%. The company's revenue was most affected; (ii) precision machining centers were affected by 3C and the automotive industry, which was significantly reduced by 51.4% compared to the same period last year; and (iii) precision grinders were basically the same as the same period last year.
For the six months ended September 30, 2023The gross profit was approximately RMB 414 million, a decrease of about 22.5% from the same period last year. Despite a decrease in orders and production volume, the overall gross margin increased by about 3.4 percentage points from about 24.3% in the same period last year to about 27.7%, thanks to the Group's efforts to reduce costs and increase efficiency. The profit for the period was approximately RMB 221 million, a decrease of about 26.4% from the same period last year, and a decrease of approximately RMB 794.35 million.