CFHI turns corner after tough times

Shanghai-listed China First Heavy Industries announced that its sales reached 990 million yuan ($143.66 million) in the first two months of this year, which may help the company avoid the risk of delisting.

CFHI is China's leading heavy machinery producer whose products include nuclear equipment, heavy vessels and heavy forging equipment.

But the past two years have been tough as the company has had to contend with a sluggish market and poor management. Its revenue kept declining over the past two years and it was warned by the China Securities Regulatory Commission that it was at risk of being delisted.

"We carried out a thorough reform including upgrading products, improving financial management and streamlining our internal structure," said Liu Mingzhong, chairman of the company.

He noted that the company had set a target this year of winning orders worth 10 billion yuan and collecting 10 billion yuan in debts. So far, the company has signed contracts worth 2.66 billion yuan and collected nearly 1.16 billion yuan in debt.

According to the State Council's energy development strategy (2016-20), China's nuclear power installed capacity would reach 58 million kilowatts by 2020. Industry insiders expect another 40 nuclear power units to be built in the following years, and the total nuclear equipment market may reach 300 billion yuan.

CFHI, as the nation's leading nuclear equipment producer, manufactures more than 80 percent of the nation's heavy forging equipment and over 70 percent of its heavy vessels, according to the company.

"China is hungry for domestically made high-end nuclear power equipment, which provides a golden chance for the manufacturers," said Song Kui, a researcher from Heilongjiang Academy of Social Sciences.

Zou Yumeng contributed to this story.