China's six tire producers report profit plunge

Lately, six domestic tire enterprises released their interim reports.

In the first half of this year, profit plunge and loss making became the key tones of the tire enterprises.

Triangle Tire’s operating revenue grew 22.79% year on year to 4.08 billion yuan, while its net profit dropped about 30% to 270 million yuan.

Linglong Tire’s operating revenue rose 42.01% to 6.73 billion yuan, but its net profit decreased 22.11% to 434 million yuan.

Giti Tire’s operating revenue increased 25.51% to 1.67 billion yuan, while the net profit plunged 76.01% to 18 million yuan.

Jiangsu General Science Technology’s operating revenue totaled 1.74 million yuan, up 14.67%, while the net profit dropped 22.79% to 64.38 million yuan.

Kenda Tire’s operating revenue was about 3.33 billion yuan, down 0.21%, while the net profit was around 46 million yuan, diving 86.09%.

Shanghai Huayi (Group)’s tire manufacturing sector realized operating revenue of 3.65 billion yuan, up 13.44%, but its largest tire producing subsidiary Double Coin Group lost 246 million yuan in the first half.

Reasons for profit plunge and loss-making of the six enterprises were generally the same: although market demand for tires is vigorous, raw material prices rise much more than the increment of tire prices, which led to a decline in gross profit.