Fenghua Tire profits down in H1' 2018
On August 10, Wuxi Fenghua Intelligent Tyre Co.,Ltd. released its first half year performance report of 2018.
Statistics showed that the company realized 81,620,492.04 yuan of sales revenue, year-on-year rising by 57.79%, and net profit belonging to shareholders yearly reduced 82.28% to 173,173.32 yuan and gross profit decreaed from 2017's 13.89% to 2018's 5.56%.
In 2018, the company became Michelin Tyre's agent, which lifted the company's sales income. However, operation cost of high-end tires such as Michelin surged 30,275,000 yuan at the same time, which squeezed the company's profit, adding to tire price down by 10% in the first six months of 2018.
Industry insiders sais that Chinese agencies has to cut tire price down, because of looming raw materials' price in 2018, which would further decreased agencies profit.
Besides, the company's board has approved the compan to apply for loan during August 10 2018 to May 28 2019.
Fenghu Tire mainly worked on tire agent business, and has been cooperated with Zhongce Rubber, General Technology, Continental tire and Sumitomo Rubber etc..
- Tireworld Insight: Domestic tire makers eye overseas expansion
- Tireworld Insight: Price disparity severe between China's rubber exports and imports
- Tireworld Insight: China tire exports dependent on US market performance
- Tireworld Insight: SHFE rubber expected to move in tight range in short-term
- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
- Tireworld Insight: China’s tire industry on track of rapid growth
