Shenyang Machine Tool Net Profit Drops 80% in the First Half of the Year

Shenyang Machine Tool released the semi-annual report on August 28. In the first half of the year, Shenyang Machine Tool realized operating revenue of RMB 3.728 billion, down 11.28% year-on-year; net profit attributable to shareholders of listed companies was RMB 10.2535 million, down 80.75% year-on-year. The company's weighted average ROE was only 0.48. %.

Shenyang Machine Tool Co., Ltd. declared that the decline in performance was mainly due to the domestic and international macroeconomic recession and the lack of investment demand in the downstream industries. The market demand for the company’s leading products was still declining, and there would be a significant decline in income and profits.

The data shows that Shenyang Machine Tool's main products, CNC machine tools, general boring machines, and ordinary drilling machines, all experienced declines in their revenue in the first half of the year. The decline rate was more than 5%, especially for ordinary boring machines. The drop was as high as 40.47%, but the company stated that At the end of June, the contract was 870 million yuan in the hands, and the new contract for the first half of the year was 3.93 billion.

The author understands that the management fees of Shenyang Machine Tool Co., Ltd. have changed significantly in the first half of the year. The company's management fees have dropped from 434 million in the previous period to 292 million in the current period, a decrease of 32.64%, and a savings of 142 million. Shenyang Machine Tool said that the funds laid the foundation for the company's profit in the first half of the year. At present, the company is in the process of transformation and upgrading. This adjustment is to effectively control the management costs.

Shenyang Machine Tool (Group) Co., Ltd. was established in December 1995 by reorganizing Shenyang Sanyuan Machine Tool Plant: Shenyang No. 1 Machine Tool Plant, Shenyang No. 2 Machine Tool Plant (Zhong Jie Friendship Factory) and Liaoning Precision Instrument Factory. At present, the company's high-end CNC machine tools have entered the core manufacturing fields of key industries such as automotive, defense and military, aerospace, and rail transit.