Recently, Hailiang released its 2023 interim report. In the first half of 2023, Hailiang achieved sales of 444,500 tons of non-ferrous metal processing products, such as copper and copper alloys. The company recorded an operating income of 43.699 billion yuan, marking a year-on-year increase of 14.87%. Additionally, the net profit attributable to shareholders of the listed company reached 717 million yuan, an increase of 10.08%, while the net profit, excluding non-recurring gains and losses, amounted to 858 million yuan, signifying a remarkable year-on-year growth of 52.22%.
During this reporting period, amid global economic recovery expectations, Hailiang capitalized on new market opportunities. The company expedited its overseas expansion in the new energy industry, bolstered its core competitiveness, and attained a higher level of competence through the optimization of its talent structure and consistent research and development efforts.
Rapid Expansion in the New Energy Market Seizes Overseas Opportunities
In the first half of 2023, Hailiang took full advantage of its leading position in traditional products, enhanced international market competitiveness through the transformation of domestic and overseas production bases for copper pipes and copper rods. Furthermore, it improved its market channels, increased service quality, and gained a foothold in emerging markets. The company also leveraged its multi-brand advantages in line with the characteristics of downstream markets, adopting an integrated online and offline marketing approach to boost market share and brand reputation, continually enhancing profitability.
Hailiang’s Lanzhou Base
In terms of domestic business in the new energy sector, Hailiang accelerated the construction process of its Gansu Lanzhou annual production capacity of 150,000 tons of high-performance copper foil materials project. Simultaneously, the company increased research and development investment and overcame technical challenges, introducing new products to meet customer needs. Furthermore, it accelerated the intelligent and green transformation of its production lines. Hailiang New Energy Materials was successively recognized as a smart factory and a green factory by the Gansu Provincial Government. The company now has the capacity for bulk supply of 4.5-9 micron copper foil, and its product order and shipment volumes have seen rapid monthly growth. It has successfully gained a leading position in the power battery and energy storage industries.
In terms of international business in the new energy sector, Hailiang, with its sharp market insight and international business operation strengths, actively seized market opportunities in the United States and Europe for the development of the new energy industry. It expedited the establishment of overseas copper foil production bases, leveraged its experience and market resources in the international copper tube market, and entered overseas markets such as the United States, Europe, and Southeast Asia as part of its differentiated market strategy. The company's overseas copper foil production base will effectively solve the supply chain security issue for leading Chinese power battery companies abroad while rapidly increasing its domestic market share, thus becoming a benchmark for global operations in the Chinese lithium-ion copper foil industry.
Talent Structure and Technological Innovation Broadening the Company's Competitive Edge in Two Dimensions
Talent is the backbone of a company's development. To align with the company's development strategy and requirements, the management of Hailiang substantially increased its talent density in the first half of the year while continuously optimizing its talent structure. The company established a layered talent training model and intensified overseas practice and training mechanisms. It initiated a bold move to infuse "new blood" by hiring qualified talents, aiming to create a comprehensive, stereoscopic international talent pool, and establishing a "fast track" for future development.
Continuous innovation is the lifeline of corporate development. While building its talent reserves, Hailiang adhered to the scientific concept of "innovation leading development." During the reporting period, the company fully leveraged its R&D and application capabilities in equipment and process and production technology. This allowed the company to reduce costs and enhance efficiency while ensuring high-quality development, thereby boosting its market competitiveness. Simultaneously, it intensified its research efforts into new materials and products. Significant progress was achieved in the development of products such as copper and copper alloy components for new energy applications, low flow resistance copper tube manufacturing processes, special copper tubes for heat pumps, and high-strength and high-ductility copper foils. Additionally, the company actively explored key topics related to multi-category low-weight copper tubes, 5G high-end standard copper foil, and extremely thin copper foil of less than 4 microns.
In the first half of the year, Hailiang applied for 13 patents, including 6 invention patents, such as A Device for Cutting Brass Rods and a Brass Rod Straightening Device, and obtained 55 patent certificates, including A Heat Transfer Coefficient Measurement Device. As of the end of this reporting period, the company owns a total of 750 patent certificates (including 35 foreign patents), of which 77 are invention patents.
"A weak mind is not a wise kind." From the perspective of strategic layout and planning, Hailiang’s future is eagerly anticipated by investors!