On April 25, Shandong Fengyuan Tire Manufacturing Co., Ltd. announced its 2018 annual operating result, and its operating income increased by 20.70% during the reporting period, reversing the declining trend and turning into a profit. This company said that it planned to achieve a year-on-year growth of more than 3.73% in the production and sales of tires as well as the sales revenue in 2019, and to achieve continuous growth of various profit items on the basis of a solid operating result.

According to the annual report, the operating revenue of Fengyuan Tire in 2018 was RMB 1.205 Billion Yuan, which increased by 20% from RMB 998 Million Yuan in the previous year, with net profit attributable to shareholders of RMB 2.381 Million Yuan. However, the company had a deficit of RMB 49.465 MillionYuan in 2017.

Fengyuan Tire indicated that it made more efforts in marketing in 2018 and had a good sales situation. Besides the strengthening of fine management in the company, the procurement price of raw materials was reduced, so the annual gross margin and net profit level was improved.

It is known that the sales volume of Fengyuan Tire in 2018 was 7.1753 million units, with an increase of 10.98% than the previous year; the gross margin of its products was 11.91%, with an increase of 4.91 percentage points. The domestic and foreign sales revenue of the company was RMB 381 Million Yuan and RMB 823 Million Yuan respectively, accounting for 31.7% and 68.3% respectively. The proportion of domestic and foreign sales business was basically the same as that in 2017. 

(Si Xianchao)