◎ Zhang Minmin

I. The operating revenue of tire enterprises had obvious hierarchy in the first three quarters

In the first three quarters of 2019, the total operating revenue of 9 listed tire enterprises (notes: Prinx Chengshan and Fengyuan Tire did not disclose the performance of three quarters) was 52.217 Billion Yuan, with a year-on-year (the same below) growth of 15.58%.

In it, Linglong Tire realized operating revenue of 12.509 Billion Yuan and Sailun Tire followed closely to be 11.327 Billion Yuan, the total operating revenue of both was 23.836 Billion Yuan, accounting for about 45.65% of the total operating revenue of 9 listed enterprises.

The operating revenue of Triangle Tire was 5.902 Billion Yuan, that of Huayi Doublecoin was 5.142 Billion Yuan, that of Guizhou Tyre was 4.839 Billion Yuan, that of AEOLUS Tyre was 4.457 Billion Yuan and that of Qingdao Double Star was 3.136 Billion Yuan, the total operating revenue of the above five enterprises was 23.476 Billion Yuan, accounting for about 44.96% of the total operating revenue.

The operating revenue of the other 2 enterprises in the first three quarters was lower than 3 Billion Yuan, in which the operating revenue of Jiangsu General was 2.61 Billion Yuan while that of S Giti was 2.295 Billion Yuan, the total operating revenue of both was 4.905 Billion Yuan, accounting for about 9.39% of the total operating revenue.

Table 1: Performance analysis of listed tire companies in the first three quarters of 2019

Unit: RMB/Yuan

Note: Sort by incomes

Linglong Tire, Sailun Tire and Triangle Tire ranking top 3 in operating revenue in the first three quarters kept a relatively stable growth, and the growth in operating revenue in the first half year and the first three quarters were respectively 14.74%, 13.26%, 8.03%, 10.14%, 5.53% and 6.61%.
As for the later 6 enterprises, except that the growth in operating revenue of Qingdao Double Star in the first half year and the first three quarters were respectively 9.28% and 8.65%, that of the rest enterprises was negative.

In it, Jiangsu General had the largest decline to be 13.38%, and its announcement indicated that the change of the operating revenue was mainly caused by decline in sale in America, Europe and China as a result of enhanced international trade barrier.

II. All the listed enterprises made profit but the profit-making conditions differed

In the first three quarters of 2019, the total net profit of 9 listed tire enterprises was 3.302 Billion Yuan, with a growth of 61.74%.

Table 2: Performance analysis of listed tire companies in the first three quarters of 2019

Unit: RMB/Yuan

Note: Sort by profit

The top three profit-making enterprises in the first three quarters are consistent with that in operating revenue, which were respectively Linglong Tire, with a profit of 1.214 Billion Yuan, Sailun Tire, with a profit of 951 Million Yuan and Triangle Tire, with a profit of 618 Million Yuan, and the total net profit of three enterprises was 2.783 Billion Yuan, accounting for about 84.28% of the total profit.

In the first three quarters, AEOLUS Tyre and Guizhou Tyre ranked 4th and 5th with a net profit of 192 Million Yuan and 129 Million Yuan, which was 321 Million Yuan in total, accounting for about 9.5% of the total profit.

In it, the profit of AEOLUS Tyre in the first three quarters increased by 10166%. Its announcement pointed out that in 2019, the company centered on the theme of “transformation and upgrading and success through quality” to realize overall optimization and upgrading and improve the company performance sustainably and stably by implementing “decomplication” of business, R&D and manufacturing. It is predicted that the accumulated net profit in 2019 will increase than that in last year. AEOLUS Tyre made a profit of 145 Million Yuan in the first half year and had a deficit of 89.9288 Million Yuan in the same period of last year, and the company gave a detailed analysis and explanation of the change in operating revenue in the report of the first half year.

The profit of the other 4 enterprises was less than 100 Million Yuan, in which Qingdao Double Star was at the bottom, its announcement indicated that since its Dongfeng Tire Factory was comprehensively transformed and upgraded to be “Industry 4.0” intelligent factory, the old factory was overally shut down in the third quarter of 2018 and the new factory had started trial production; its Eco-friendly Removal Industry 4.0 Demonstration Base - High-performance Passenger Car Radial Tire Project was completed and transferred to be fixed assets at the end of 2018 and existed in the output promotion phase at present, which resulted in increase in fixed cost of the unit product. The above reasons comprehensively resulted in the fact that the realized net profit attributable to the shareholders of the listed company of the company in the first three quarters was 28.9614 Million Yuan, with a decrease of 46.26%. Along with normal production of Dongfeng Tire Industry 4.0 Factory of the company and subsequent industrial integration of Hengyu Science and Technology by the company, it is predicted that the profit will be gradually improved in the future.

In the first three quarters, the tire output of Huayi Doublecoin Tire was 8.4135 Million, the sale was 8.3045 Million and the sales volume was 5.142 Billion Yuan, and the net profit in the first three quarters was not disclosed.