China’s robotic industrial chain companies posted mixed results for the third quarter ending in September 30, showing the varying impact of a slowing economy on its manufacturing sector.
ZD Motor (中大力德), Inovance (汇川技术) and Lihexin (利和兴) were among a slew of companies that led the surge in financial performance in Q3.
ZD Motor, a manufacturer of key robotic components such as RV reducer and harmonic reducer, recorded 282 million yuan (US$38.53 million), up 30.92% year on year.
Its net profit attributable to shareholders jumped 30.92% from the same period last year to 24 million yuan.
Industrial automation giant Inovance, founded by a group of ex-Huawei executives, is another player that emerged a winner from a slower-than-expected economic recovery.
During the reporting period, its revenue shot up 31.24% over a year earlier to 7.67 billion yuan.
Net profit attributable to shareholders rose 11.94% to 1.24 billion yuan year on year, Inovance said in its financial statement.
It makes frequency converter, servo system, high-performing motor, sensor and other parts essential to automation and industrial robotics.
The company attributed the brisk revenue growth to the equipment and technologies it supplied to China’s booming EV sector.
Aside from EV, a big buyer of automation equipment, burgeoning demand from the smart terminal, electronics and internet industries was also a driver of a spike in some companies’ results.
Shenzhen-based Lihexing, an obscure firm compared to Inovance, saw its revenue leaping 35.68% to 123 million yuan in Q3.
The firm’s net profit attributable to shareholders soared by a whopping 1,922.09% to 11 million yuan, the largest expansion of this kind among all the industrial chain companies.
Lihexing is an OEM supplier of established smartphone and 3C product producers Huawei, Honor, Foxconn and TCL.
Amid great economic uncertainty, some companies have experienced sharp drops in both revenue and profit.
The revenue of Wayzim (中科微至), a smart logistics solution provider, slumped 49.52% to 192 million yuan in Q3.
Net losses piled up to 78 million yuan during the same period, although the financial report didn’t say if the losses widened or narrowed.
OMH (东杰智能), a producer of mainly smart production and warehouse management systems, recorded 112 million yuan in revenue, down 53.86% year on year.
Its net losses attributable to shareholders amounted to 44.85 million yuan, rocketing 334.92%.
Economic pundits have blamed the lackluster performances of some industrial companies on China’s weaker economic rebound.
It dented client demand to purchase robots and other automation equipment to upgrade production lines and enhance digitalization.