Hengtong Optoelectronics’ net profit increased by 27.07% year-on-year in the first three quarters of 2023
24 Jan 2024
Hengtong Optoelectronics recently announced its operating results for the third quarter of 2023, demonstrating continued high-quality development amid increasingly complex and severe global challenges. The financial report shows that the company achieved net profit attributable to the parent company of 1.804 billion yuan in the first three quarters, a year-on-year increase of 27.07%, and its main business, global layout, and comprehensive competitiveness have been further enhanced.
Operating results for the first three quarters were encouraging
According to the financial report, Hengtong Optoelectronics achieved operating income of 35.101 billion yuan in the first three quarters of 2023, a year-on-year increase of 1.30%; net profit attributable to the parent company was 1.804 billion yuan, a year-on-year increase of 27.07%. Among them, the third quarter revenue and net profit attributable to the parent were 11.924 billion yuan and 554 million yuan respectively.
As of the end of the reporting period, the company's total assets were 59.877 billion yuan, an increase of 7.54% from the end of the previous year; the net cash flow generated from operating activities was 478 million yuan, and the cash received from selling goods and providing services was 37.292 billion yuan.
Overall, Hengtong Optoelectronics' operating results in the first three quarters of 2023 are promising, with profitability, operating capabilities, asset quality, and cash flow all in good condition. Based on confidence in future development and recognition of the company's value, in order to improve the company's long-term incentive mechanism, enhance the confidence of public investors, and effectively protect the legitimate rights and interests of all shareholders, Cui Wei, chairman of Hengtong Optoelectronics, proposed that the company use its own funds through the Shanghai Securities Exchange The exchange's trading system uses centralized bidding transactions to repurchase shares for employee stock ownership plans or equity incentives. The total amount of funds for this repurchase is planned to be no less than 50 million yuan (inclusive) and no more than 100 million yuan (inclusive).
Main business continues to achieve good results
"Perseverance can make metal work." Behind the outstanding performance of Hengtong Optoelectronics in the first three quarters, it has benefited from the overall improvement of the information and communication industry under the background of "new infrastructure", "dual carbon", "digital China" and other eras, and the optical communication industry. The improvement of the industry's supply and demand pattern and the steady advancement of the national grid construction are also inseparable from its continuous investment in communication networks, energy interconnection, marine industry and other fields.
For example, in the field of marine industry, Hengtong Optoelectronics continues to strengthen technology and product innovation, expanding application scenarios and market space. Since 2023, it has won bids for multiple domestic and foreign offshore wind power and offshore oil and gas projects, and has sufficient orders on hand. During the reporting period, it successively won the bids for the 66kV and 220kV submarine cable and ancillary equipment procurement projects for the Lingao Offshore Wind Farm Project of Huaneng Hainan Branch, and the 450MW Phase I 450MW U Site Project of the South China Sea Wind Power Base in Shandong Peninsula.
At the same time, the company has orders on hand in energy interconnection fields such as submarine cables, marine engineering and land cable products, with an order value of approximately 17 billion yuan; it has orders in hand for marine communications business with an order value of approximately 6 billion yuan.
Hengtong Optoelectronics adheres to the global operation strategy, "looking at the world map to build a business, and going out along the Belt and Road", and constantly improves the construction of global marketing network and industrial layout. In July 2023, the company planned to acquire approximately 42.97% of the shares of the joint venture PT Voksel Electric Tbk through its overseas wholly-owned subsidiary Hengtong Optoelectronics International, and reached a preliminary intention with relevant shareholders.
PT Voksel was listed on the Indonesian Stock Exchange in 1990 and is one of Indonesia's largest overall cable solution providers. Hengtong Optoelectronics currently indirectly holds approximately 30.08% of its shares.
On the basis of promoting the layout of the optical communications industry in the Indonesian market in the early stage, Hengtong Optoelectronics plans to continue to acquire part of the equity of PT Voksel to achieve control of it, further strengthen its Indonesian localization capabilities in the power field; improve the company's two major communications and energy The layout of the field in the Indonesian and Southeast Asian markets continues to enhance the competitiveness in the international market.
Despite facing market competition and uncertainty in the macroeconomic environment, Hengtong Optoelectronics has maintained a steady and upward operating condition and performed well in all aspects. At the same time, its expansion in main business and globalization has also laid a solid foundation for its future development. Looking forward to the future, with the vigorous development of 5G, Internet of Things, smart grid, offshore wind power and other industries, Hengtong Optoelectronics is expected to usher in greater development space based on its unremitting efforts and accumulated experience in technological innovation, business operations, market expansion and other aspects.
Operating results for the first three quarters were encouraging
According to the financial report, Hengtong Optoelectronics achieved operating income of 35.101 billion yuan in the first three quarters of 2023, a year-on-year increase of 1.30%; net profit attributable to the parent company was 1.804 billion yuan, a year-on-year increase of 27.07%. Among them, the third quarter revenue and net profit attributable to the parent were 11.924 billion yuan and 554 million yuan respectively.
As of the end of the reporting period, the company's total assets were 59.877 billion yuan, an increase of 7.54% from the end of the previous year; the net cash flow generated from operating activities was 478 million yuan, and the cash received from selling goods and providing services was 37.292 billion yuan.
Overall, Hengtong Optoelectronics' operating results in the first three quarters of 2023 are promising, with profitability, operating capabilities, asset quality, and cash flow all in good condition. Based on confidence in future development and recognition of the company's value, in order to improve the company's long-term incentive mechanism, enhance the confidence of public investors, and effectively protect the legitimate rights and interests of all shareholders, Cui Wei, chairman of Hengtong Optoelectronics, proposed that the company use its own funds through the Shanghai Securities Exchange The exchange's trading system uses centralized bidding transactions to repurchase shares for employee stock ownership plans or equity incentives. The total amount of funds for this repurchase is planned to be no less than 50 million yuan (inclusive) and no more than 100 million yuan (inclusive).
Main business continues to achieve good results
"Perseverance can make metal work." Behind the outstanding performance of Hengtong Optoelectronics in the first three quarters, it has benefited from the overall improvement of the information and communication industry under the background of "new infrastructure", "dual carbon", "digital China" and other eras, and the optical communication industry. The improvement of the industry's supply and demand pattern and the steady advancement of the national grid construction are also inseparable from its continuous investment in communication networks, energy interconnection, marine industry and other fields.
For example, in the field of marine industry, Hengtong Optoelectronics continues to strengthen technology and product innovation, expanding application scenarios and market space. Since 2023, it has won bids for multiple domestic and foreign offshore wind power and offshore oil and gas projects, and has sufficient orders on hand. During the reporting period, it successively won the bids for the 66kV and 220kV submarine cable and ancillary equipment procurement projects for the Lingao Offshore Wind Farm Project of Huaneng Hainan Branch, and the 450MW Phase I 450MW U Site Project of the South China Sea Wind Power Base in Shandong Peninsula.
At the same time, the company has orders on hand in energy interconnection fields such as submarine cables, marine engineering and land cable products, with an order value of approximately 17 billion yuan; it has orders in hand for marine communications business with an order value of approximately 6 billion yuan.
Hengtong Optoelectronics adheres to the global operation strategy, "looking at the world map to build a business, and going out along the Belt and Road", and constantly improves the construction of global marketing network and industrial layout. In July 2023, the company planned to acquire approximately 42.97% of the shares of the joint venture PT Voksel Electric Tbk through its overseas wholly-owned subsidiary Hengtong Optoelectronics International, and reached a preliminary intention with relevant shareholders.
PT Voksel was listed on the Indonesian Stock Exchange in 1990 and is one of Indonesia's largest overall cable solution providers. Hengtong Optoelectronics currently indirectly holds approximately 30.08% of its shares.
On the basis of promoting the layout of the optical communications industry in the Indonesian market in the early stage, Hengtong Optoelectronics plans to continue to acquire part of the equity of PT Voksel to achieve control of it, further strengthen its Indonesian localization capabilities in the power field; improve the company's two major communications and energy The layout of the field in the Indonesian and Southeast Asian markets continues to enhance the competitiveness in the international market.
Despite facing market competition and uncertainty in the macroeconomic environment, Hengtong Optoelectronics has maintained a steady and upward operating condition and performed well in all aspects. At the same time, its expansion in main business and globalization has also laid a solid foundation for its future development. Looking forward to the future, with the vigorous development of 5G, Internet of Things, smart grid, offshore wind power and other industries, Hengtong Optoelectronics is expected to usher in greater development space based on its unremitting efforts and accumulated experience in technological innovation, business operations, market expansion and other aspects.
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