Operation of Chinese tire company, the worst in the world!

As major tire companies at home and abroad have released their financial report data for the first half of the year, we can finally understand what has changed in the tire market in the first half of this year from the perspective of tire companies.

Unsurprisingly, the overall situation of China’s major tire companies in the first half of the year was obviously not as optimistic as that of their foreign counterparts.

Top 10 domestic and foreign tire companies in the first half of the year

In the global tire company revenue ranking, European tire companies have been affected by the Russian-Ukrainian conflict and the weak European economy, and the ranking has been greatly affected.

In terms of changes in revenue and net profit, various companies have shown a relatively obvious trend of “revenue rising and profit falling”.

In the revenue ranking of domestic listed tire companies, Sailun overtook Linglong to the first position.

In terms of changes in net profit and operating income, the data of domestic companies objectively reflects the current cold tire market.

The death of tires in data

It can be seen from the revenue in the first half of the year that although there is still a certain distance between Chinese tire companies and the world’s top 10, the gap is narrowing.

However, this does not mean that Chinese tire companies had better luck than foreign companies in the first half of the year.

The first half of the international tire giant: revenue returns to 2019 levels

If you pay attention to the revenue and net profit data of the international tire giants, it is not difficult to find that the major multinational tire manufacturers have increased their revenue.

This is mainly due to the relatively strong market dividends in the international tire market.

Some international tire companies said that even though they withdrew from some markets in the first half of the year due to the impact of the international situation, the accelerated economic recovery in various countries after the epidemic has generated more tire consumption demand, which has made the company’s revenue in the first half of the year a good one. Performance.

Some tire companies said that the current revenue of the company has returned to the level before the outbreak in 2019.

But good revenue cannot cover up the cost dilemma that tire companies are facing.

On the other hand, in the net profit column of various companies, except for a few companies that achieved profit increases due to merger adjustments or differences in market direction, most tire giants’ net profit in the first half of the year declined to varying degrees or even suffered losses.

The reason is that the recent rising commodity prices and the soaring international shipping costs at the beginning of the year have directly increased the cost of tire production and sales.

Therefore, we have seen more international tire companies express in their semi-annual financial reports that they will optimize the existing tire production capacity structure and refine their business to cope with the increasingly serious cost problems.

The first half of the domestic tire manufacturers: revenue and profit double decline

If the international tire giants can still be gratified by the improvement in revenue, then the first half of the domestic tire listed companies can only be described as tragic.

We saw that in the first half of the year, most of the major domestic listed tire companies were in the process of “double decline” in revenue and net profit.

In addition to facing serious tire production and sales cost problems like international tire companies, the deserted domestic tire market is even worse.

In the financial reports of foreign tire companies, nearly half of them mentioned the downturn of their own Chinese tire market, which shows the coldness of the Chinese tire market in the first half of this year.

Since most domestic tire companies focus on the domestic market, in the first half of this year, many of the top ten domestic listed tire companies in terms of revenue have experienced a downward trend in revenue, with a year-on-year decline ranging from 1-20%.

The net profit performance was even worse. Except for Sailun and Sentirin, which mainly focus on the international market, the net profit of other listed tire companies has declined by more than 18%.

In recent years, the trend of China’s tire market from an incremental market to a stock market is obvious to all. The lack of domestic market demand may become the norm for a period of time in the future.

In the face of changes in the market trend, domestic listed tire companies are seeking to “go global”. Most tire companies mentioned the progress of their overseas factories in their semi-annual financial reports.