DHHI(002204)2023-10-12 13:56Group 1: Company Overview and Business Segments - Dalian Huari Heavy Industry Group Co., Ltd. operates in several key business segments, including material handling equipment, new energy equipment, metallurgy equipment, core components, and engineering contracting projects [2][3]. - Revenue from the material handling equipment segment for 2020-2022 was 2.116 billion, 2.775 billion, and 2.920 billion CNY respectively [2][3]. - The new energy equipment segment generated revenues of 2.677 billion, 2.000 billion, and 2.000 billion CNY during the same period [2][3]. Group 2: Financial Performance - The company reported operating costs for the material handling equipment segment of 1.724 billion, 2.335 billion, and 2.476 billion CNY from 2020 to 2022 [4]. - Orders for the material handling equipment segment were 2.657 billion, 3.003 billion, and 2.943 billion CNY for the same years [4]. - The gross profit margin for the material handling equipment segment was 18.52%, 15.86%, and 15.22% from 2020 to 2022 [4]. Group 3: Market Dynamics and Challenges - The demand for crankshaft products has increased due to the shipbuilding market cycle, with revenues for the crankshaft segment reaching 1.95 billion, 1.95 billion, and 3.86 billion CNY from 2020 to 2022 [3][4]. - The primary customers for crankshaft products include major shipbuilding companies such as Shanghai Shipbuilding and Dalian Marine Diesel Engine [3]. - Domestic crankshaft manufacturers face challenges in cost and technology compared to foreign brands, although recent advancements have improved competitiveness [3][4]. Group 4: Currency and Risk Management - The company's dollar revenues for 2021, 2022, and the first nine months of 2023 were 115 million, 100 million, and 40 million USD respectively [5]. - To manage exchange rate risks, the company employs strategies such as adjusting pricing based on expected currency fluctuations and utilizing forward foreign exchange contracts [5].