Significant increase in sales revenue in the tire industry in China

Facing the world's huge fluctuations in the prices of natural rubber, China's tire industry structure adjustments in 2011 have shown significant results: the tire radialization ratio has increased, and tire sales revenue and export delivery values ​​have increased significantly, and the proportion of mid- to high-end product exports has increased significantly. This is the conclusion that the reporter has obtained from the statistics of 45 major tire companies that have just been completed by the China Rubber Industry Association’s tire branch.

Statistics show that in 2011, sales of 45 tire companies reached 207.9 billion yuan, an increase of 19.3% over the previous year. Among them, the sales revenue of radial tires was 175.5 billion yuan, and the radialization rate was 84.4%. According to the analysis, the increase in China's tire sales revenue in 2011 was mainly due to rubber tire prices to drive up tire prices, and increase the proportion of high-grade tires.

The top 10 tire sales revenues are: Hangzhou Zhongce, China Jiatong, Triangle Group, China Zhengxin, Shandong Linglong, Aeolus Tyre, Shuangqin Group, Xingyuan Tire, Qingdao Double Star and Cooper Platinum. Only 6 of the 45 tire companies had a slight decrease in sales revenue, and the rest generally increased, and the rate was larger. The faster-growing ones are: Jiangsu General Motors, Saiwan, and Xinjiang Kunlun, with an increase of over 50%. Among the top 10, Hangzhou Zhongce, China Zhengxin, Shuangqin Group, Xingyuan Tire and Aeolus have a good momentum of growth, with the growth rate above 20%, especially the rapid development of Hangzhou Zhongce, which has exceeded 20 billion yuan. Widened the gap with other tire companies.

Looking at the export volume of tires, in 2011, 45 tire companies achieved a total export of 70.3 billion yuan, an increase of 27.4% over the previous year. From the perspective of export volume, exports of 133 million units, an increase of only 3.9% over the previous year, indicate that the export prices of tires in China have increased significantly over the past year. At the same time, the added value of exported tire technology has increased, and the proportion of medium and high-end products has increased. Exports account for about one-third of total sales revenue, which is higher than the average level in recent years in China. It shows that the growth of China's tire sales mainly depends on exports, and has basically escaped the influence of the United States “special protection case”.

Examining the export delivery value of enterprises as a percentage of sales revenue, the majority is more than 30%. Hebei Xingmao, Henan Friends, and Beijing Capital International have foreign dependency ratios of over 60%. According to the export delivery value, the top 10 are: China Jiatong, Hangzhou Zhongce, Triangle Group, Shandong Linglong, Cooper Chengshan, Xingyuan Tire, Aeolus Tyre, Shuangqin Group, Race Wheels, and Jinyu Group. The export delivery value of enterprises generally increased by a large margin. The export value of 10 companies accounted for 65.2% of the total export value. By region, Shandong, Jiangsu and other provinces lead the country. Among them, the export tire industry in Shandong achieved extraordinary leapfrog development. The Shandong Inspection and Quarantine Bureau tested the value of export tires by US$ 7.834 billion, an increase of 54.06% over the previous year, accounting for nearly 50% of China's export value of tires.

While the tire sales revenue achieved a substantial increase, the output growth slowed down. In 2011, the production volume of 45 major tire companies reached 314 million sets, an increase of 2.5% over the previous year. Among them, 76.8 million sets of all-steel tires were loaded, with an increase of 4.3%. The increase in tire production and all-steel tire production was the lowest in recent years. According to the tire production ranking, the top 10 are: China Jiatong, Hangzhou Zhongce, China Zhengxin, Shandong Linglong, Triangle Group, Nanjing Jinhu, Guangzhou South China, Jinyu Group, Cooper Chengshan and Race Wheels, nearly half of the companies Tire production has declined, with most companies growing at a single-digit rate. In 2011, China's tire production capacity has not been fully released. The domestic total production capacity of all-steel tires is 15 million sets, the total production capacity of all-steel tires is 115 million sets, and the release rate of all-steel tires is about 80%.

The tire industry was accompanied by labor pains in structural adjustment, that is, heavier stocks and lower profits of some companies. The total inventory of 45 companies was 17.15 billion yuan, an increase of 27.5% over the previous year, of which 33 domestic-funded enterprises increased by 17% year-on-year. Companies with large inventories include: China Jiatong, Hangzhou Zhongce, Jiangxi Taifeng, Shuangqin Group, Fengshen Tire, Qingdao Double Star, Guizhou Tire, Triangle Group, Race Wheel Company and Shandong Linglong. Inventories with a year-on-year increase of over 50% include Xinjiang Kunlun, Jinyu Group, Tianjin Zhenxin, Sichuan Haida, Shandong Huitong, Friends Tire, Guangzhou Baoli, Pirelli, Xingyuan Tire, China Jiatong and Xuzhou Xulun. At the same time, industry profits fell by 16.2% over the previous year, with 11 loss-making companies and a loss of 25.6%. Some tire companies have difficulties in production and operation. A considerable number of tire companies maintain an 80% production load, especially for small tire companies.