Aeolus Tire 2016 performance declines

Aeolus Tire saw both its revenues and profits decline in 2016.

In 2016, the tire maker reaped operational revenues of 7.325 billion yuan, down 10.4 percent from 2015, and net profits of 84.55 million yuan, down 43.38 percent.

By the end of 2016, Aeolus Tire had total assets of 7.728 billion yuan, 25.1 percent less than a year earlier.

In 2016, Aeolus Tire produced about 468,700 pieces of diagonal tires, down 13.04 percent from 2015,and sold about 498,300 pieces of diagonal tires, down 11.76 percent.

In 2016, its radial tire output totaled 6.95 million pieces, down 3.59 percent from 2015, and radial tire sales were 7.33 million pieces, down 29.26 percent.

Its passenger car tire output totaled 2.14 million pieces in 2016, down 30.73 percent from 2015, and the sales dropped 16.43 percent to 2.52 million pieces.

Aeolus Tire planned to produce 8.05 million pieces of tires in 2017.

In 2016, Aeolus Tire acquired 100 percent stakes of Double Happiness Tyre Industrial Co. and Qingdao Yellow Sea Rubber Company from China National Tire & Rubber Co. with cash.

In 2016, Aeolus Tire put 199 million yuan in the research & development, about 2.72 percent of its operational revenues.

Aeolus Tire said it would face several challenges in 2017. First, the global demand for tires is shrinking under a worldwide economic slowdown.

Second, the tire maker’s profit space is squeezed by higher raw material costs and environmental protetion measures.