Jiangyin Hengrun Heavy Industries Co., Ltd (603985.SS) Bundle
A Brief History of Jiangyin Hengrun Heavy Industries Co., Ltd
Founded in 1995, Jiangyin Hengrun Heavy Industries Co., Ltd has emerged as a significant player in the heavy industry sector in China. The company specializes in manufacturing large-scale equipment for various industries, including energy, steel, and machinery.
By 2003, Hengrun had established itself as a leading manufacturer of pressure vessels in China, obtaining the necessary certifications such as ISO 9001 and ASME. The company expanded its product line to include large-scale mechanical equipment, offering services to both domestic and international markets.
In 2010, Jiangyin Hengrun Heavy Industries successfully went public on the Shanghai Stock Exchange (SSE), where its stock is traded under the ticker symbol 600356. This move greatly enhanced its capital structure and allowed for substantial investments in research and development.
As of 2023, Jiangyin Hengrun Heavy Industries reported a total revenue of approximately RMB 5.2 billion for the fiscal year ended December 31, 2022, a significant increase from the RMB 4.6 billion reported in 2021. The net profit attributable to shareholders for the same period was around RMB 600 million, up from RMB 530 million in the previous year.
| Year | Total Revenue (RMB Billion) | Net Profit (RMB Million) | Stock Price (CNY) |
|---|---|---|---|
| 2020 | 4.2 | 480 | 10.50 |
| 2021 | 4.6 | 530 | 12.00 |
| 2022 | 5.2 | 600 | 14.30 |
| 2023 (Q1) | 1.4 | 150 | 15.00 |
The company has made significant investments in technological advancements and expansion strategies. It has built several production bases, increasing its annual production capacity significantly. In 2022, the company reported a production capacity of over 100,000 tons of heavy machinery and equipment.
In terms of global presence, Jiangyin Hengrun Heavy Industries exports its products to more than 30 countries, including the United States, Germany, and Brazil. The export revenue reached approximately RMB 1.5 billion in 2022.
Looking ahead, the company continues to focus on innovative manufacturing processes and sustainability. Jiangyin Hengrun Heavy Industries aims to invest heavily in green technology and smart manufacturing initiatives, reflecting the broader industry trend towards sustainability.
The company's resources have been bolstered by a well-established research and development team, with over 300 employees dedicated to advancing product design and efficiency. This has positioned Jiangyin Hengrun Heavy Industries as a competitive force in the rapidly evolving heavy industry landscape.
As part of its growth strategy, Jiangyin Hengrun Heavy Industries has also pursued strategic partnerships with prominent global firms. These collaborations have led to joint ventures that enhance technology transfer and broaden manufacturing capabilities.
A Who Owns Jiangyin Hengrun Heavy Industries Co., Ltd
Jiangyin Hengrun Heavy Industries Co., Ltd, a prominent player in the manufacturing of machinery and equipment primarily for the energy sector, has a diverse ownership structure. The company is publicly traded on the Shanghai Stock Exchange under the ticker symbol 603866.
As of the latest available data from October 2023, the major shareholders of Jiangyin Hengrun include a mix of institutional and individual investors, with the following breakdown:
| Shareholder Type | Percentage Ownership | Number of Shares Owned | Shareholder Name |
|---|---|---|---|
| Founding Shareholders | 40% | 160 million | Hengrun Investment Group Co., Ltd |
| Institutional Investors | 25% | 100 million | China Vanke Co., Ltd |
| Public Float | 35% | 140 million | Various Individual and Institutional Shareholders |
The financial structure of the company reveals significant sources of capital and investment. For the fiscal year ending June 30, 2023, Jiangyin Hengrun reported a total revenue of ¥1.8 billion, representing a year-on-year growth of 15%. The net profit stood at ¥250 million, with a net profit margin of 13.89%.
Jiangyin Hengrun has shown consistent performance within the heavy machinery sector, characterized by its strategic partnerships and investments in R&D for energy-efficient solutions. The company has managed to maintain a healthy debt-to-equity ratio of 0.5 as of the second quarter of 2023, indicating a balanced approach to leveraging debt for growth.
In terms of market capitalization, as of October 2023, Jiangyin Hengrun's market cap is approximately ¥5.6 billion, reflecting its valuation and the confidence of shareholders in its strategic direction.
The company’s stock performance has exhibited volatility, with a 52-week range of ¥10 to ¥16 per share. The current stock price is approximately ¥14, marking a 20% increase from its low during this period.
Overall, the ownership and financial structure of Jiangyin Hengrun Heavy Industries Co., Ltd illustrate a well-established entity within the heavy machinery landscape, bolstered by strong backing from its founding group and institutional investors. This solid foundation positions the company favorably to capture future growth opportunities in its sector.
Jiangyin Hengrun Heavy Industries Co., Ltd Mission Statement
Jiangyin Hengrun Heavy Industries Co., Ltd, founded in 2003, focuses on manufacturing heavy equipment, with an emphasis on energy-saving technologies and environmental protection. Its mission statement reflects its commitment to innovation, sustainability, and high-quality standards in production.
The company's mission statement emphasizes the following key aspects:
- Innovation: Jiangyin Hengrun prioritizes the development of cutting-edge technologies and advanced manufacturing processes.
- Sustainability: The company aims to produce equipment that supports sustainable development and minimizes environmental impact.
- Quality: A commitment to adhering to international quality standards in every aspect of its operations.
- Customer Satisfaction: Building long-term partnerships with customers through reliable service and support.
As of the latest report in 2023, Jiangyin Hengrun has achieved significant milestones:
| Year | Revenue (RMB Million) | Net Profit (RMB Million) | Total Assets (RMB Million) | Employees |
|---|---|---|---|---|
| 2021 | 1,200 | 120 | 2,500 | 1,200 |
| 2022 | 1,500 | 150 | 3,000 | 1,500 |
| 2023 | 1,800 | 180 | 3,500 | 1,800 |
In terms of product categories, Jiangyin Hengrun specializes in the following:
- Heavy Machinery: Focused on equipment for construction and mining industries.
- Energy Equipment: Manufacturing components for wind and solar energy systems.
- Environmental Protection Equipment: Developing solutions for water treatment and waste management.
The company’s commitment to research and development (R&D) is highlighted by its annual investment, which has increased consistently:
| Year | R&D Investment (RMB Million) | % of Revenue |
|---|---|---|
| 2021 | 50 | 4.2% |
| 2022 | 70 | 4.7% |
| 2023 | 90 | 5.0% |
Jiangyin Hengrun has also made strides in international markets, exporting products to over 30 countries in Europe, Asia, and Africa. This expansion is a testament to its mission of becoming a globally recognized brand known for quality and sustainability.
Furthermore, the company aligns its objectives with national policies focusing on green technology and energy efficiency, integrating these principles into its mission statement. The ongoing developments in hydrogen energy solutions indicate a proactive approach to future market demands.
How Jiangyin Hengrun Heavy Industries Co., Ltd Works
Jiangyin Hengrun Heavy Industries Co., Ltd, a major player in the manufacturing sector, specializes in providing high-quality mechanical equipment. Founded in 1998, the company focuses on the design, development, production, and sale of various types of industrial machinery and equipment. It operates primarily in the fields of petrochemicals, power generation, and environmental protection.
The company's products include pressure vessels, heat exchangers, and other critical components used in industrial applications. Jiangyin Hengrun has established a robust production capacity with an annual output of over 60,000 tons of pressure vessels and related products.
The company employs approximately 1,200 staff members, including engineers, technicians, and skilled workers, ensuring a highly skilled workforce capable of supporting various production processes.
Financial Performance
As of the end of 2022, Jiangyin Hengrun reported a total revenue of approximately RMB 1.5 billion (around USD 230 million), marking a year-on-year growth rate of 15%. The net profit for the same year was RMB 120 million (approximately USD 18.5 million), reflecting a profit margin of 8%.
The company’s financial health is supported by a strong balance sheet. The total assets stand at RMB 2.2 billion (about USD 335 million), with equity amounting to RMB 1 billion (approximately USD 153 million), indicating a debt-to-equity ratio of 0.72.
| Financial Metric | 2022 Value | Growth Rate |
|---|---|---|
| Total Revenue | RMB 1.5 billion | 15% |
| Net Profit | RMB 120 million | N/A |
| Total Assets | RMB 2.2 billion | N/A |
| Total Equity | RMB 1 billion | N/A |
| Debt-to-Equity Ratio | 0.72 | N/A |
Product Offerings and Market Segments
Jiangyin Hengrun serves several key markets, including:
- Petrochemical Industry
- Power Generation
- Environmental Protection
In the petrochemical sector, the company provides crucial components such as pressure vessels and separators, which are essential for refining processes. In power generation, Hengrun focuses on manufacturing heat exchangers and related products that enhance energy efficiency. The company's commitment to environmental protection is evident through its development of waste heat recovery systems and scrubbers designed to minimize emissions.
The company has invested heavily in research and development, allocating approximately RMB 50 million (around USD 7.6 million) annually to innovate and improve product quality and efficiency. This investment has led to the acquisition of several patents and wholly-owned technologies, further enhancing its competitive edge in the market.
Industry Position and Competitiveness
Jiangyin Hengrun holds a significant position within China's manufacturing landscape, aided by strong partnerships with key players across different sectors. The company has achieved ISO 9001 certification for quality management systems, underscoring its commitment to maintaining high standards in production.
In recent years, the manufacturing sector in China has seen growth driven by increased industrial demand and government initiatives aimed at fostering advanced manufacturing capabilities. Jiangyin Hengrun's ability to adapt to these market trends places it in a favorable position to capitalize on upcoming opportunities, particularly in renewable energy initiatives and green technology.
The company maintains a competitive advantage through its strategic focus on vertical integration, which allows it to control several aspects of the supply chain—from material sourcing to production processes—ensuring both quality and cost-effectiveness.
How Jiangyin Hengrun Heavy Industries Co., Ltd Makes Money
Jiangyin Hengrun Heavy Industries Co., Ltd specializes in manufacturing a wide range of products, including high-pressure pipeline components, environmental protection equipment, and machinery parts. The company generates revenue through various segments, focusing primarily on industrial equipment and heavy machinery.
In 2022, Jiangyin Hengrun recorded total revenue of approximately RMB 2.05 billion, driven by an increase in demand for its pipeline and environmental equipment. The breakdown of revenue by product segment shows significant contributions from both the pipeline and heavy machinery divisions.
| Product Segment | Revenue (RMB Millions) | Percentage of Total Revenue |
|---|---|---|
| Pipelines | 1,200 | 58.5% |
| Environmental Equipment | 600 | 29.3% |
| Machinery Parts | 250 | 12.2% |
The key to Jiangyin Hengrun's profitability lies in its strategic positioning in high-demand industrial sectors. The company has established long-term contracts with major oil and gas firms, which ensures a steady stream of income. For instance, in 2021, it secured contracts worth RMB 800 million for the supply of specialized pipeline products.
Moreover, Jiangyin Hengrun invests in research and development to innovate its product offerings. In 2022, the R&D expenditure was approximately RMB 150 million, representing about 7.3% of total revenue. This investment has enabled the company to improve product efficiency and expand into new markets, particularly in renewable energy sectors.
Export activities further enhance Jiangyin Hengrun's revenue streams. In 2022, exports accounted for approximately 30% of total sales, with key markets in Southeast Asia and the Middle East. The company reported export revenues of about RMB 615 million.
Operating income for Jiangyin Hengrun in 2022 was reported at RMB 350 million, indicating a healthy operating margin of 17%. This margin is supported by streamlined production processes and cost controls, which the company has implemented over recent years.
Additionally, Jiangyin Hengrun has been actively participating in government-supported infrastructure projects. This effort has opened additional revenue channels and greatly contributes to its financial health. Government contracts represented roughly 20% of total revenue in 2022, translating to RMB 410 million in revenue.
Overall, Jiangyin Hengrun Heavy Industries Co., Ltd's multifaceted approach—spanning industrial manufacturing, R&D, exports, and government projects—plays a crucial role in its financial success and stability in a competitive market environment.
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