Guizhou Tyre Co., Ltd. released on Apr. 25 the financial results for the first quarter of this year.
During the reporting period, Guizhou Tyre’s operating revenue grew 10.56% year on year to 109.39 million yuan; the net profit surged 2865.86% to 134 million yuan; and the net profit attributable to shareholders of the listed company rose 1862.78% to 115.24 million yuan.
The key factor for the turnaround in the first quarter was due to the land acquisition compensation being counted into the non-operating revenue for the first quarter.
The land of the old factory of Guizhou Tyre’s former subsidiary was acquired by the government as part of local shantytown renovation project, and the compensation was 240.01 million yuan.
Guizhou Tyre had been in deficit since 2016 due to the anti-dumping and anti-subsidy probe in the U.S., equipment upgrade, and sluggish domestic demand.
Under such circumstances, counting land acquisition compensation into non-operating income became the only way of turning around.
