Huayi nets down 41 pct in 2016

Shanghai Huayi (Group) Company gained 40.9 billion yuan of revenues in 2016, up 0.74 percent from 2015, and reaped net profits of 418 million yuan, down 40.59 percent from 2015.

In 2016, the tire business of the company generated revenues of 8.45 billion yuan, up 20.82 percent from 2015.

The company produced 9.58 million pieces of tires in 2016, up 5.4 percent from 2015. Specifically, the output of all-steel radial tires was 6.289 million pieces, up 0.7 percent on year, while that of bias tires was roughly 745,000 pieces, almost the same with 2015. Its passenger car tires production rose 21.4 percent to 2.555 million pieces.

Huayi said in a note that China’s all-steel radial tire production capacity exceeds 150 million pieces a year, while the market demand is only about 70 million pieces.

Even counting in the annual export of 40 million pieces, Chinese tire industry only needs to operate about 70 percent of the total production capacities, Huayi said.

By December 31 2016, Shanghai Huayi Company had invested altogether 3.822 billion yuan.

Huayi ranks the third in China in terms of all-steel tire production capacity, after Zhongce and Triangle.

Specifically, Double Coin (Chongqing) invested 1.646 billion yuan to build an all-steel radial tire plant of 2.5 million pieces a year, which is planned to cost a total investment of 1.877 billion yuan.

Double Coin (Rugao) invested 457 million yuan to expand a high-performance all-steel radial tire plant, which will require a total investment of 1.526 billion yuan.

Double Coin (Anhui) invested 1.585 billion yuan to build a high-performance semi-steel radial tire plant, which is designed with a total investment of 3.183 billion yuan.

Double Coin (Xinjiang) invested 134 million yuan to expand a high-performance all-steel radial tire plant, which is expected to have a total investment of 988 million yuan.

Huayi plans to produce 10.97 million pieces of tires in 2017, and expects the annual sales revenues to grow 2.5 percent from last year.