Giti Tire Corp. released on Apr. 11 the financial results for 2016.
Statistics show that the company’s operating revenue totaled 3.02 billion yuan, down 146 million over 2015.
The company’s sales revenue was 3.00 billion yuan, while the export sales plunged 502 million yuan from 2015. But the domestic sales increased 350 million over the previous year.
The US had been the primary export market of Giti Tire, but its sales tumbled in the country after the US imposed higher anti-dumping and anti-subsidy taxes on passenger car radial tires and light vehicle radial tires from China.
Giti Tire disclosed that it readjusted the product structure and expanded export sales in the domestic market as well as non-US markets, but still cannot offset the impacts triggered by sales plunge in the US market.
Last year, the company produced 16.24 million tires, up 6%; while its sales volume was 16.15 million tires, up 4%.
Although the sales volume increased, Giti Tire’s gross profit margin was lower than in 2015.
In 2016, the company’s operating gross profit was 672 million yuan, down 100 million yuan from 2015; and the operating gross profit margin was 22.24%, vs. 24.37% in 2015.
Last year, Giti Tire’s operating profit lessend 121 million yuan, or 22.50%, year on year to 416 million yuan; and the net profit attributable to parent company dropped 51 million yuan, or 25.28%, to 151 million yuan.
Giti Tire holds a 51% stake in Fujian Giti Tire, who produces and sells radial tires with a registered capital of 106.7 million US dollars.
In 2016, Fujian Giti Tire realized operating revenue of 3.01 billion yuan and net profit of 326 million yuan. Its main business revenue totaled 3.00 billion yuan and the profit reached 652 million yuan.
As of end-2016, Fujian Giti’s total assets valued 2.34 billion yuan, the net assets valued 1.52 billion yuan, and the leverage was 35.28%.
