Greatoo Intelligent Profit Plunges due to Sluggish Tire Market

Greatoo Intelligent released on Aug. 23 the interim report for 2016.

The company’s business revenue dropped 21.15% to 375 million yuan year on year in the first half of this year and the net profit plunged 71.74% to 19.86 million yuan.

As of end-June, the company’s total assets grew 7.92% from the beginning of this year to 4.72 billion yuan, while the net assets attributable to listed shareholders slid 1.74% to 2.93 billion yuan.

Greatoo Intelligent attributed the business decline to sluggish demand from the auto market as well as serious tire industry condition.

According to the company, the sentiment of the auto market fluctuated with sluggish demand in the first half of this year due to domestic economic slowdown as well as trade barriers in overseas markets.

At the same time, the condition of the tire industry was serious. Under the pressure of domestic economic slowdown, the tire market demand kept sluggish at home; while the export prices decreased and the ratio capacity utilization was low because of impacts induced by the anti-dumping and anti-subsidy probes launched by the U.S. against Chinese exports.

Accordingly, business revenue and profit of Greatoo Intelligent were not as good as expected.

Greatoo Intelligent said it had made efforts to address the difficulties and challenges during the first half.

On the one hand, the company improved its deployment in the intelligent manufacturing sector by accelerating market promotion and application. It also made efforts to develop high-tech smart equipment, explore the Industry 4.0 sector, and develop the industrial robot sector.

On the other hand, the company optimized product structure, fostered new driving forces, enhanced R&D, improved quality, controlled costs and exploited the high-end market.