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Special report by Sichuan Daily on Honghua: Creating business opportunities for Sichuan and Hong Kong companies through openness and assimilation

soruce:manager    click:2982    time:2013-07-31

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Honghua?held?its?Annual?Shareholders’?Meeting?at?its?Wanchai?office?on?May?22,?2013.?At?the?meeting,?shareholders?were?informed?that?Honghua's?sales?revenue?in?2012?was?RMB?5.068?billion.?Net?profit?attributable?to?shareholders'?equity?was?about?RMB?529?million.?Net?profit?grew?by?215.2%?over?the?previous?year.?

Honghua?Group?was?successfully?listed?on?the?Hong?Kong?Stock?Exchange?in?2008,?becoming?the?first?listed?company?in?China's?petroleum?drilling?and?exploration?equipment?industry.?Having?raised?HK$2.958?billion?from?the?IPO,?Honghua?began?to?expand?its?production?capacity,?becoming?the?world’s?largest?land-based?drilling?machine?production?base.?The?Group?is?now?moving?towards?the?marine?drilling?platform?market,?a?market?that?has?even?higher?added?value.?

Honghua?Group?also?registered?as?a?company?in?Hong?Kong?during?the?second?half?of?2009.?It?even?recruited?international?talent?in?Hong?Kong.?Finance?Director?Chung?Kai?Cheong?was?an?auditor?in?KPMG?before?he?was?headhunted?to?join?Honghua.?

Today?the?majority?of?overseas?purchases?made?by?Honghua?is?made?via?transshipment?in?Hong?Kong.?This?is?because?of?Hong?Kong’s?market?economy?system,?one?that?attracts?countless?foreign?businesses.?It?is?pertinent?to?note?that?1/3?of?the?world’s?petroleum?companies?have?their?headquarters?in?Hong?Kong,?to?the?extent?that?sometimes?traders?and?energy?businesses?are?located?in?the?same?building.?According?to?Chung,?this?enabled?his?Hong?Kong?team?to?have?face-to-face?meetings?with?over?a?dozen?customers?on?any?given?day.?He?said,?"It?is?extremely?important?to?have?face-to-face?communication.”?Early?in?2012,?one?of?Honghua's?Indian?customers?signed?purchase?orders?worth?around?US$35-40?million?with?the?company?in?Hong?Kong.?The?company?expects?its?Hong?Kong?business?to?double?as?a?result?of?its?decision?to?use?the?Special?Administrative?Region?as?a?platform?to?expand?its?sales?in?marine?drilling?machines.?

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