CIMC-TianDa enters the deal to acquire 60% stake in Shenyang Jietong

On August 29, CIMC-TianDa Holdings Company Limited (stock code: 445.HK) held the 2018 interim result release conference at Shenzhen. After carrying out the significant restructure of equity held in China Fire Safety Enterprise Group Limited (CFE) and changing its to CIMC-TianDa Holdings Company Limited, the industrial giant released its first performance report for the first half of 2018.

In April, CIMC became the majority shareholder of CFE by disposing its equity interests respectively held in Pteris Global and CIMC-TianDa to CFE. With the equity restructuring, CFE expanded its business from firefighting equipment to airport facilities (including boarding bridges and ground support equipment), firefighting trucks and rescue equipment, automatic logistics equipment, and intelligent parking system, etc. Impacted by the equity restructuring and business expansion, revenue of CIMC-TianDa in the first 6 months reached 991 million yuan, increasing 172% year-on-year; net profit attributable to shareholders of the parent company increased significantly to 58.45 million yuan.

Revenue from boarding bridge business increases to 400 million yuan

Airport facilities business remains to be one of core businesses and growth drivers of the company. Financial data show that the revenue from airport facilities and intelligent parking system amounted to 561 million yuan. Noteworthily, the passenger boarding bridge contributes the largest proportion of revenue and reports a year-on-year growth of 180% to 396 million yuan, since the company accelerated the verification and acceptance processes and delivery speed, and the revenues of a large number of projects were confirmed in the first 6 months.

In terms of the boarding bridge business, CIMC-TianDa has been strategically strengthening the technological R&D and making preparation for intelligent airport facilities. In the second half of 2017, the company launched the world’s first unmanned intelligent boarding bridge and VDGS (visual docking guidance systems), which would lower down labor costs and reduce the average time spent on parking a plane from 3 minutes to 1 minute. In the future, CIMC-TianDa will satisfy the demands of airport terminals around the world for upgrading to enable airport terminals to offer more intelligent and convenient services.  

As a cultivation-oriented business, the intelligent parking system also made brilliant performance in the first half. The independently developed intelligent mechanical stereo garage, the first one of its kind in the industry, has outperformed competitors in terms of technical parameters. In 2018, CIMC became the biggest winner of bids for intelligent parking projects which were sponsored by Shenzhen Municipal Government and different district governments. Such projects have effectively solved the parking difficulty and received good comments from the local governments

Firefighting trucks and rescue equipment business achieves greater strategic status

CIMC’s access to firefighting equipment business started with its acquisition of German Ziegler GmbH – a time-honored and well-established brand in 2013. After that, Ziegler has grown at a fast speed and expanded from German market to global markets. So far, the company has its products sold and distributed in more than 70 countries and regions and become the No. 1 imported firefighting truck brand on China’s market.

Currently, the firefighting truck business has become the second largest business of CIMC-TianDa. Though the business revenue of Ziegler was not included in the interim report, yet the revenue from firefighting trucks and rescue equipment grew to 143 million yuan in the first 6 months.

With a series of strategic preparations and operations, CIMC-TianDa has become the most professional supplier of “one stop” solutions in domestic firefighting equipment sector, and it is also the largest firefighting truck producer in the country. According to business development plans, with a series of resource integrations and business arrangements, CIMC-TianDa aims to achieve the full coverage of its product types and production facilities in major regions across the world; and with systematic and integrated operations, it hopes to make into the list of first-class firefighting truck producers by 2020 and sell mid- and high-end firefighting trucks manufactured in different regions on global markets by means of global operation.

Revenue from automatic logistics systems business increases 98% year-on-year

Thanks to the expansion of market coverage areas, steady project implementation progress and the increase in the number of delivered projects, revenue from the automatic logistics systems business (baggage, materials and warehouse handling systems) rose 98% year-on-year to 287 million yuan.  

Over the years, CIMC-TianDa has been speeding up its development on domestic and foreign automatic logistics market. Today, it ranks first in China and third in the world, holds a remarkable share of global air cargo handling system market and over 50% share of domestic market.  

Industrial experts predict that there will be a steady growth on China’s automatic logistics system market from 2017 to 2021, and the market size will reach 214 billion yuan by 2021, which means that CIMC-TianDa’s automatic logistics business has huge development space.