All the nine Chinese listed tire companies have released the financial reports for the third quarter of this year.
Operating revenues don’t match net profits
In the third quarter, Sailun Jinyu reaped profits of 3.736 billion yuan, more than any other public tire firm in China. Ling Long Tire ranked the second, with profits of 3.584 billion yuan.
Triangle Tire, Aeolus Tire and Guizhou Tire each reported profits of between 1.8 billion and 2 billion yuan for the third quarter.
Jiangsu General Science Technology and Qingdao Doublestar Tire each earned around 1 billion yuan in July-September.
Companies such as Sailun Jinyu Group and Guizhou Tire didn’t earn enough to match the operating income.
Sailun Jinyu had 152 million yuan more operating revenues than Ling Long Tire, while its net profits were only 56.2 percent of the latter.
Doublestar Tire and Giti had relatively good control of the costs, with net profits accounting for more than 5 percent of the operating incomes.
During the third quarter, both Guizhou Tire and Aeolus Tire incurred great losses, due to the rising prices of the raw materials.
Surprisingly, Aeolus Tire reduced product prices by 4 percent on average compared to the previoius reporting period, despite the more expensive raw materials.
Doublestar Tire gets powerful support from goverment
Eight of the nine companies said they received governmental subsidies, which were included in the non-recurring profit and loss category.
Doublestar Tire received around 38.48 million yuan of subsidies, more than any other competitor, from the local government. Sailun Jinyu got 24.57 million yuan.
Aeolus Tire and Shanghai Huayi Group received more than 5 million yuan respectively from the government. Giti and Jiangsu General Science Technology only pocketed 485,000 yuan and 773,000 yuan respectively.
Triangle Tire also received around 19.43 million yuan through assets management.
Ling Long Tire gained additional 1.18 million yuan through litigation compensation in the third quarter, and the company altogether got 5.696 million from this non-recurring profit and loss in the first three quarters of the year.
