Annual Report 2012 - Haitian International Holdings Ltd.

Chairman‘s Statements
The Board of Directors has declared a final dividend of HK$0.15 per share for the year ended 31 December 2012, bringing the
dividend for 2012 to HK$0.27 per share.
Domestic and export sales
The Group’s sales by geographic areas are summarized in the following table:
(RMB million) 2012 % 2011 %
2012 vs
2011
Domestic Sales 4,189.7 66.1% 4,854.2 69.1% (13.7)%
Export Sales 1,990.0 31.4% 1,992.6 28.4% (0.1)%
Parts (both domestic and export) 155.9 2.5% 180.8 2.5% (13.8)%
Total 6,335.6 100.0% 7,027.6 100.0% (9.8)%
The persistent impact of the Chinese tightening measures implemented since 2011 and slowdown of growth in the Chinese
economy as a result of both sluggish domestic consumption and external demand from export, all together adversely affected the
confidence of our customers in China. This led to a slowdown in PIMM demand in China and affected our domestic sales in 2012.
In the mid of 2012, we observed gradual relaxation of credit tightening policy in China including the reduction of reserve ratio and
interest rate by PBOC. These measures helped to stabilize the domestic economy and prevent it from further weakening. Benefiting
from a diversified customer portfolio, especially for large corporate customers which generally have strong financial position and
carefully-planned CAPEX schedule, our domestic sales was less impacted by the tightening measures than other industrial peers. Our
full-year domestic sales recorded a drop by 13.7% from RMB4,854.2 million in 2011 to RMB4,189.7 million in 2012.
The European sovereign debt crisis and the United States economy entering a softer growth phase together continued to pose
challenges to the export markets. In view of our relatively low global market share in countries excluding China, we still have rooms
to minimise the adverse impact of these challenges through committed strategies in expanding export sales including developing
new markets, operating overseas service centers and assembly facilities and enhancing the pre-sale and after-sales services. Our
export sales remained stable during the Reported Period and recorded a negligible drop of 0.1% from RMB1,992.6 million in 2011
to RMB1,990.0 million in 2012. This minor drop was a result from appreciation of RMB against US Dollars in 2012. The sales mix of
export sales to our total revenue increased from 28.4% in 2011 to 31.4% in 2012.
Small and medium-to-large tonnage sales
The Group’s sales by small and medium-to-large tonnage PIMMs are summarized in the following table:
(RMB million) 2012 % 2011 %
2012 vs
2011
Small tonnage 3,747.0 59.1% 4,346.6 61.9% (13.8)%
Medium-to-large tonnage sales 2,432.7 38.4% 2,500.2 35.6% (2.7)%
Parts 155.9 2.5% 180.8 2.5% (13.8)%
Total 6,335.6 100.0% 7,027.6 100.0% (9.8)%
Annual Report 2012 Haitian International Holdings Limited 05