Analysis on 2011 Sales of China Listing Hardware Companies

2011 was still a year for the constant transformation and development of China hardware companies. In regard to the data of 10 listing companies, the total revenue all maintained growth, among which Supor Group (002032), Hangzhou Robam (002508), ASD Group (220403), SBS Zipper (002098), Vanward (002543), and Jiangsu Hongbao Group all had their total revenue reaching RMB1 billion. In particular, Supor Group left other companies far behind as its total revenue amounted to RMB7.125 billion. The overall growth of the data of listing companies reflects the entire trend of the whole industry, or at least of the core enterprises. 

As an irreplaceable hardware country in the global market with stable industry growth, China’s role in the hardware supplying to domestic and foreign markets has been solid. The situation further explains that though recently the hardware industry has faced a tough financial environment, the impact on the consumption market has been minor. Customers’ buying habit toward the hardware products hasn’t changed.  

In terms of the data of the 10 listing companies, 6 companies had net profit growth, and 4 had net profit reduction, among which Jiangsu Tongrun Machinery & Electrical Group (002150), ASD Group, Jiangsu Hongbao and Weixing (002003) with reduced net profits had relatively higher export proportion. In the open reports of the listing companies, the four companies above considered that the reduced sales were due to the weak consumption in the international market, the appreciation of RMB, the growth of labor cost, the rise of main material price, and the increase of selling expense.    

The weak marketplace is the entire trend faced by the enterprises but more enterprises have kept the sales growth by all means. Robam had the largest net profit proportion growth in 2011, reaching to RMB186 million and up 39.19% compared to 2010. As a leader in the kitchen electrical products field, Robam sells most of its products to the domestic market, avoiding the risks such as the RMN appreciation and weak international market. In addition, Robam has been widely recognized by the customers and market as one of the famous brands in the kitchen electrical products field.