Giti Tire’s Overseas Sales Drop 30pct

Giti Tire Corp. released on Aug. 31 the interim report for 2016.

In the first half, Giti Tire’s operating revenue dropped 21.94% year on year to 1.32 billion yuan; and the net profit attributable to shareholders tumbled 30.50% to 74.29 million yuan.

The company said that as the US launched punitive tariff on China’s radial tires for passenger cars, its overseas sales tumbled sharply in the front of fiercer market competition.

Besides this, major raw material price decline leads to lower tire pricing, therefore, Giti Tire’s operating revenue in the first six months of this year lessened 372 million yuan over the same period of last year.

Giti Tire had released in its annual report for 2015 that it aimed to realize operating revenue of 3.28 billion yuan in 2016, up around 3.5% year on year.

As of end-June, the company’s sales revenue was 1.32 billion yuan, accomplishing 40.37% of its target for this year.

In the first half, Giti Tire’s gross profit margin was 24.29%, generally unchanged from the same period of last year.

The company’s domestic sales revenue climbed 3.20% year on year to 551 million yuan in the first half; while the overseas sales revenue plunged 34.23% to 758 million yuan.

Giti Tire owns a 51% stake in Fujian Giti Tire. The Fujian subsidiary engages in radial tire production and sales, with a registered capital of 106.7 million US dollars.

In the first six months of this year, Fujian Giti Tire’s operating revenue and net profit were 1.32 billion yuan and 163 million yuan, respectively.

As of end-June, Fujian Giti Tire’s total assets amounted to 2.27 billion yuan, the net assets were 1.73 billion yuan, and the asset-liability ratio was 24.08%.