Heng Tian Lixin Announced That Shenzhen's Dyeing And Finishing Line Resumed Production And Staff Aggregation Incident Was "Satisfactorily Resolved".

China Heng Tian Li Xin International Co., Ltd. (hereinafter referred to as "Heng Tian Li Xin") announced in July 8th that the company was located in the Longgang District of Shenzhen, where one of the dyeing and finishing equipment production plants happened earlier. The incident of staff aggregation has been satisfactorily settled in July 3rd (last Wednesday), and the factory has resumed normal production. According to the preliminary assessment, the event of employee aggregation directly does not have a significant impact on the performance and financial position of the group in the current financial year.


Prior to the report, Heng Tian Li Xin announced on June 17th that one of the dyeing and finishing equipment production departments located in several business sections of Longgang District, Shenzhen, still had some personnel communicating with the company to negotiate the continuation of the labor contract, the consultation to terminate the labor contract and other related matters. A few employees left their jobs, gathered in factories and communicated with enterprises, resulting in little impact on production. The incident began in June 4th of this year.


Data show that, as of the end of 2018, Heng Tian Li Xin achieved business income of HK $3 billion 472 million, an increase of 2% over the same period last year. Gross profit was HK $1 billion 103 million, down 8.81% compared to the same period last year. The profit attributable to the parent company was HK $141 million, down 50% from the same period last year. The basic earnings per share is 12.82 Hong Kong cents, and the final dividend will be 2 Hong Kong cents per share.


During the reporting period, the manufacturing and sales dyeing and finishing machinery division of Heng Tian Li made about HK $2 billion 695 million, accounting for 78% of the group's revenue, up 1% from the previous year. Manufacturing and sales of stainless steel casting products division achieved revenue of about HK $494 million, accounting for 14% of group business revenue, up 16% from last year. Operating profit increased from about HK $56 million last year to HK $81 million. The business segment has been performing well and its growth is ideal.


By the end of December 31, 2018, there were about 4570 employees in Heng Tian Li Xin, covering China, Hongkong, China, Macao, Germany, Switzerland, Austria, Thailand, India, Turkey and Central America to South America. By the end of 2018, the cost of employees (including directors' remuneration, employees' remuneration and retirement benefits scheme contributions) amounted to about HK $758 million.