Huadi International Group Co., Ltd. (HUDI) experienced a decline of 10.47% in the premarket. However, the last trading session closed at $17.29 with a decline of 38.9%.
Half-Year 2021 Financial Results
HUDI announced half-year 2021 on 26th August 2021. The number of domestic clients and revenues grew by 16.94 percent to $29.89 million compared to $25.56 million for the same period in 2020. Moreover, the gross profit dropped 15.08 percent to $5.35 million, down from $6.30 million at the same time in 2020. The company managed to reduce the price of items supplied to attract new clients, which resulted in a loss in gross profit. Furthermore, HUDI’s net income for the six months ended March 31, 2021, was $0.64 million, down from $2.65 million the year before.
During the six months ending March 31, 2021, the company continued the growth pace, increasing total revenue by 16.94% over the same period the previous year. In addition, HUDI is dedicated to achieving its corporate objective by the thorough implementation of growth plans, systematic expansion in both abroad and local markets, proactive involvement with Huadi clients through new goods, and sensible sales and marketing expenditure.
RMB 20.7 million Stainless Steel Seamless Pipe Order Contracts
On 9th April 2021, HUDI reported that after winning a proposal for a mining project in Gansu Province, China, the Company was recently granted stainless steel seamless pipe order contracts totaling RMB 20.65 million (about US $3.2 million). HUDI will provide stainless steel seamless pipes worth RMB 20.65 million for a mining project run by a major Chinese state-owned energy facilities development company. Moreover, the pipes will be utilized to transport fluids and provide ventilation.
The company aims to provide high-quality goods to the long-term partners, and they expect the relationships with current and potential clients to improve as HUDI establishes a reputation for sophisticated technology and high-quality products via its commitment to innovation and accuracy.
$1.6 Million Stainless Steel Seamless Pipe Order Contracts
HUDI announced on 17th March 2021 that after winning a proposal for a mining project in China’s Gansu region, the Company was recently granted stainless steel seamless pipe order contracts for RMB 10.2 million (about $1.6 million). HUDI will deliver stainless steel seamless pipes worth RMB 10.2 million for a mining project run by a major Chinese state-owned energy facility construction company. The pipes will be utilised to transport fluids and for ventilation purposes.
Moreover, the project bid acts as a declaration of the pipe goods’ quality and the expertise of the technical staff. HUDI is committed to pushing product innovation and achieving the highest quality standards in the industry. The company is convinced that their collaboration with a Chinese industry leader will only serve as a stepping stone as they grow their customer base to include more and more top chemical and industrial firms in China and throughout the world.