Taiwan's top five tire enterprises in China suffered a severe annual performance decline

- Apr 11, 2019-

Recently, the Chinese Taiwan 5 big tire enterprises have unveiled its operating performance in 2018, after finishing the found that is different from the performance of the a-share listed tire companies, is A new rubber, kenda tire enterprises full-year revenue profit year-on-year fall across, taifeng tyres appear even the operating profit is negative, losing money in the production of tires.

No one was spared, and performance fell across the board

As can be seen from the above table, the annual revenue of the five enterprises is 24.6 billion yuan, 7.1 billion yuan, 2.352 billion yuan, 1.14 billion yuan and 1.128 billion yuan, respectively. The change rate of the four enterprises except jianda tire is negative, excluding the impact of product structure adjustment, the decline in revenue can indeed reflect the unsatisfactory sales situation of the enterprise.

Look to the operating profit (gross), 5 companies full-year operating profits have double-digit year-on-year decline, besides a new rubber, the rest four did fall by over fifty percent, taifeng tyre operating profit is negative in the previous year on the basis of further reduce, can be said to be "every production of a tire, thanks to a money".

The sharp decline of operating profit also leads to the reduction of gross profit margin. The gross profit margin of the above enterprises is only 6.79%, 1.80%, 4.08% and 0.84%. The specific comparison with the a-share listed tire enterprises still needs to wait for them to release the complete annual report.

The enterprise's net profit before tax in 2018 is still not good, in the three companies fell, huafeng rubber also is only under the condition of losses in the previous year will decrease percentage of loss-incurring enterprises, it is worth noting that jianda tyre pre-tax profit is far higher than the gross profit, this suggests that the company's net profit is "water", which means more income does not come from this part of the tire product, perhaps is to buy financial products or investment behavior, etc.

After the turmoil, companies still haven't 'surfaced'

Contrast this five enterprise performance in recent years, Taiwan rubber companies until the end of 2016 operating conditions are also in a good condition, the data indexes are increased year by year, after 2017 years of natural rubber prices after the price volatility of raw materials, such as the five business profit level almost "ks", and in raw material prices low in 2018 did not. He caught his breath.Learned that the five companies all have buuilt production bases in China, and is a new rubber and kenda tire with mainland China strategic leading tire enterprises, exquisite and the wheel, the internationalization strategy layout and have the ability to fight against the risk of trade friction, and continental tire business after last year's savings development situation has greatly improved.

Industry officials said, China's auto production in 2018, with 4.2% and 2.8% year-on-year decline in sales, appeared for the first time in more than 20 years of negative growth for the tire industry in pessimism, domestic tyre production also appear because of the low capacity utilization for the first time in 20 years, but the raw material cost reduction and improved tire prices also let tire enterprise profit space greatens, the cause of the tire enterprise performance of Taiwan remains to be further research.