Tire China have maintained good momentum

In recent years, rapid development of the tire industry, tire production in 2005 has been close to 250,000,000, also accompanied by technological progress and quality. "In a few days ago by the China Rubber Industry Association and Guangzhou to expand sales of tires, co-organized by the" national brand in 2006 to promote the development of the League of the seminar ", the Rubber Association Ju Hong Zhen said.

As China's auto industry and road transport development, the tire industry is faced with major opportunities for development. The market also can not help but make the global tire industry was exciting. It is reported that the world's top 11 in the world tire industry giants, there are 9 in a joint venture or wholly-owned Chinese factories. Gradually grew up on the Chinese tire brands business, Europe and the United States have begun to run for the Asian-African market.

Tire business growth

Statistics show that domestic tire manufacturers as many as several hundred, of which 7 are listed companies. From these statements of the company's performance, the tire industry in recent years, the rapid development of listed companies has been turned into a reality. In 2005, sales of the top 10 brands, good tire, rubber tires, shares of Aeolus, the Double Star shares, Qian Luntai, such as the Yellow Sea shares of listed companies are on the list.

According to Qian Luntai released 2005 annual report, Qian Luntai 2005 operating results to achieve rapid growth to achieve the main business revenue and net profit respectively over the same period last year growth of 31.74%, 100%. In addition, the company also expects net profit in the first quarter of 2006 than the same period last year increased by 150-200 percent.

Fengshen is the largest shares of steel radial truck tire manufacturer, is also the country's largest construction machinery manufacturer of tires. According to the company's 2005 financial report, the company achieve the main business revenue, main business profit, net profit respectively over the same period last year growth of 32.09%, 19.41%, 50.27%. Earnings per share reached 0.45 yuan.

Qingdao Double Star in 2001, the merger means to intervene in order to absorb the tire industry, the domestic tire industry, "an upstart." From a financial targets, in the tire industry revenue in 2001 from the 741,340,000 yuan, to the development of the 2004 1,832,670,000 yuan, a high-speed growth momentum. Tire business revenue accounted for the main business revenue has increased to more than 80%. The first three quarters of the company to achieve earnings Main 2,267,120,000 yuan, year-on-year revenue growth of 41.63 percent, the company announced that: net profit surged over the same period last year, net profit is expected to increase over the same period last year more than 50%, and if the "China-made equipment Corporate income tax credit "of preferential policies to be implemented in 2005 net profit growth over the same period last year than in the more than 100%.

It should be noted that, as in the automotive industry will be part of the difficulties in the development of automobile manufacturers, tire companies are also facing the pressure of competition and survival. In 2005, the main raw material tire natural rubber, synthetic rubber, nylon cord fabric, carbon black, have experienced a big increase. Some tire companies are still struggling. If the shares in the Yellow Sea in 2005 net profit -9180 million yuan, down 612.82 percent, a loss for the first time.

Industry Opportunities and Challenges

Although China has become the world's largest tire production, but not the production of power, China's tire production is still higher raw material and energy consumption, and lower prices. Beijing Rubber Industry Research and Design Institute of Engineering and a professor, rubber tire Rubber Industry Association Chen Zhihong, head of group of experts think so.

Chen Zhihong, the shortage of raw materials and energy prices and the impact should not be lightly.

Even if some of the excellent performance of the enterprise, is also facing these problems. Fengshen, such as shares in the 2005 annual report said: in 2005 the company's production and operation of the most difficult year. Unfavorable factors including the growth of the auto industry is slowing down, tire raw materials prices significantly, the international frequent trade friction, the internationalization of increasing competition, and so on.

For the competition in the tire industry, rubber industry expert suggested that the tire industry should closely follow the development trend of raising the rate of radial tire, and promote the load of tubeless tires, and increased research and development, at the same time to promote enterprise development strategy of the Group.

According to Chen Zhihong analyzed the current domestic tire companies are a business, a factory, and foreign enterprises are often a lot of factory business. Joint enterprises is conducive not only to increase the size and level of management, and product specification, brands, logistics, procurement of materials in such areas as a great advantage.

At present, the tire industry has been restructuring for the acquisition. Shoe and started to become the footwear industry leader of a group of Qingdao Double Star, in the second half of 2001 through the acquisition of Qingdao Huaqing Tire Industry Corporation, kicked and stepped into the tire industry, and on this very persistent. , Double Star will extend the M & A in a difficult situation in the east of the Golden Lion tires, taken in the first year, "Trust assets", well into 2005.

Shares in the Yellow Sea and the operating difficulties, according to the company recently released a notice, the controlling shareholder group in the Yellow Sea 100% of the shares to the transfer of all of China's chemical-owned vehicles, a wholly owned subsidiary of the Group of chemical and equipment companies.

Foreign-invested enterprises and domestic enterprises to buy tires never stopped. In 2005, the Singapore group to buy good tire * ST birch, and good read-shares. It is expected that the tire industry with a new round of M & A wave of consolidation has been since.