Overseas revenue of Guizhou Tyre increases, production capacity continues to expand in the second half of the year

The increase in overseas revenue was even greater, and the gross profit in overseas markets was higher. The cost of raw materials fell. Guizhou Tyre (000589.SZ) thus has greatly increased its gross profit and net profit in the first half of this year.

The semi-annual report released by the company showed that in the first half of the year, the company realized operating income of 4.441 billion yuan, an increase of 12.45% over the same period last year; the net profit attributable to shareholders of the parent company was 340 million yuan, an increase of 112.02% over the same period last year.

Unlike other listed tyre companies, Guizhou Tyre's main product is all-steel tyres.

The staff of Guizhou Tyre Securities Department said: "The all-steel tyre market was good in March and April this year. The market went down in May and June, and orders resumed in August."

The company's overseas market revenue has increased significantly and its gross profit is higher. In the first half of this year, the company achieved overseas revenue of about 1.49 billion yuan, an increase of more than 400 million yuan over the same period last year, and its overseas market share increased from 17.64% in the same period last year to 27.13%. At the same time, the gross profit margin increased by 9.49% to 27.13%, much higher than the domestic 17.28%.

In addition, the person in charge said that the gross profit of the company's off-road tyres is relatively high, accounting for nearly 40% of the company's revenue. This year, off-road tyres have been expanding production, which has also made a positive contribution to the company's performance. “The 950,000 high-performance all-steel radial tyres project in Vietnam includes 150,000 off-road tyres, and it is expected that part of the production capacity will be released in the second half of the year.”