Guizhou Tyre H1 net profit turns around

Guizhou Tyre Co., Ltd. released Aug. 29 the interim report for the first half of this year.

During the reporting period, the company’s operating revenue totaled 3.16 billion yuan, up 20.77% year on year; and the net profit was 8.35 million yuan, up 116.5% and showing a turnaround.

In the first half, the company produced 2.39 million tires, down 1.75%, and it sold 2.20 million tires, down 18.19%.

It is notably that the company’s net profit attributable to shareholders (excluding non-current items) lessened 85.85 million yuan, down 155.86%.

Guizhou Tyre explained that the land of its former subsidiary Guizhou Qianjin Rubber Co., Ltd.’s old factory was expropriated as a whole by the government, and the compensation was counted as non-operating income.

In addition, as tire prices grow less than raw material prices, the enterprise’s operating costs increased. The export destinations’ anti-dumping and anti-subsidy probe also affected its sales this year.

Guizhou Tyre said in the report that it plans to sell 6.19 million tires this year, but it could be difficult given serious economic condition, insufficient market demand and trade barriers increase.