Forex losses, fair-value changes weigh on Sanhua Intelligent’s profit
Refrigeration components maker Zhejiang Sanhua Intelligent Controls Co. Ltd. (2050.HK; 002050.SZ) reported on Wednesday its revenue rose 3.9% year-over-year to 16.9 billion yuan ($2.51 billion) in the first half of this year, while its profit fell 3.1% to 2.04 billion yuan.
Revenue from its refrigeration and air-conditioning appliance components segment edged up 0.5% year-over-year to 10.44 billion yuan, while its automotive components business grew 9.9% to 6.46 billion yuan.
The profit decline despite the revenue growth owed mostly to 286 million yuan in foreign-exchange losses, coupled with a 198 million yuan loss from changes in the fair value of its equity instruments.
The company said it will seize on opportunities presented by the rapid development of bionic robots to broaden its product pipeline, accelerate the construction of production bases, and improve its product designs while enhancing its overall product competitiveness.
Shares of Sanhua Intelligent opened up 0.15% at HK$26.20 on Thursday. The stock is down over 40% from its 52-week high.
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