Sluggish Tire Market Cuts Profit of Greatoo Intelligent Equipment

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

In the first half, Greatoo Intelligent Equipment realized operating revenue of 375 million yuan, tumbling 21.15% year on year; and its net profit was 19.86 million yuan, plunging 71.74%.

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

Greatoo Intelligent Equipment attributed the poor business performance to sluggish auto market demand and serious condition of the tire industry.

The company reckons that domestic economic slowdown and trade barriers in overseas market lead to fluctuation of the auto industry and sluggish market demand in the first half of this year.

In the meantime, the tire industry is facing serious condition. Under heavy pressure of economic slowdown, demand on domestic tire market stays weak; while the export prices decrease due to the anti-dumping and anti-subsidy measures taken by the US against tires from China, and the capacity utilization became lower.

As a result, the company’s operating revenue and profit during the reporting period were poor.

Greatoo Intelligent Equipment said it had taken efforts addressing the difficulties.

On the one hand, the company improved the deployment in the smart manufacturing sector and accelerated in promoting industrial application; it also developed high-end equipment sets to integrate the industry chain.

It exploited the Industry 4.0 equipment sector and continueddeveloping industry robot business.

On the other hand, Greatoo Intelligent Equipment optimized product structure, nurture new profit driving forces, enhanced R&D of new products, improved quality, enhanced cost management, and exploited the high-end market.