股份代號：1809 浦林成山控股有限公司 (於開曼群島註冊成立的有限公司) 2024 年報 PURSUE EXCELLENCE 2024ANNUAL REPORT Stock Code：1809 PRINX CHENGSHAN HOLDINGS LIMITED (Incorporated in the Cayman lslands with limited liability) ANNUAL REPORT 2024 年報 目 錄 公司資料 2 財務摘要 4 本集團概覽 7 主席報告 9 管理層討論及分析 12 董事及高級管理層 41 董事會報告 49 企業管治報告 80 獨立核數師報告 綜合損益表 綜合全面收益表 綜合財務狀況表 綜合權益變動表 綜合現金流量表 綜合財務報表附註 101 106 107 108 110 112 113 浦林成山控股有限公司 二零二四年年度報告 公司資料 董事會 執行董事 車寶臻先生 （行政總裁） 石富濤先生 曹雪玉女士（於2024年3月28日離任） 姜錫洲先生（於2024年3月28日委任） 非執行董事 車宏志先生 （主席） 王雷先生（於2024年3月28日離任） 邵全峰先生 王 ...

智通财经APP讯，浦林成山(01809)发布截至2024年12月31日止年度的年度业绩，收入109.74亿元(人民 币，下同)，同比增加10.3%;股东应占溢利13.12亿元，同比增加26.94%;每股基本盈利2.06元;拟派发末期 股息每股0.5港元。 公告称，于2024年，集团销售轮胎2800万条(+11.7%)。其中，全钢胎销售800万条(–1.7%);半钢胎销售 1950万条(+18.6%);斜交胎销售50万条(+3.7%)。 集团主要通过经销商供应替换市场，截至2024年12月31日止年度期间，集团国内与国际经销商渠道的营 业收入(含贴牌客户)分别约为23.26亿元(2023年：约23.81亿元)及75.37亿元(2023年：约63.26亿元)，各占 轮胎收入的约21.2%及68.7%;直接向汽车制造商销售的营业收入约11.08亿元(2023年：约10.20亿元)，约 占集团轮胎收入的10.1%。其中，全钢胎、半钢胎分别占集团轮胎销售收入约57.2%及41.0%，斜交胎占 比约1.8%。 于2024年，集团系统性地拓展国际营销渠道，成功新增7个主权市场并开发66家新客户，同步完成18个 重点国家深度 ...

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 10,973.9 million, representing a year-over-year increase of 10.3%[12] - Net profit for the same period was RMB 1,311.9 million, with a net profit margin of 12.0%[19] - Gross profit margin slightly decreased to 21.2% from 21.3% in the previous year[17] - Total assets increased to RMB 11,024.7 million, up from RMB 10,602.4 million in 2023[15] - The company's equity attributable to shareholders rose to RMB 6,543.5 million, reflecting a year-over-year growth of 20.4%[19] - Basic earnings per share increased to RMB 2.06, up 26.9% compared to the previous year[19] - EBITDA for 2024 was RMB 1.99 billion, an increase of 16.4% year-on-year, while net profit attributable to shareholders was RMB 1.31 billion, up 26.9% year-on-year, resulting in a basic earnings per share of RMB 2.06, a growth of 27.2%[30] - The total revenue for 2024 reached RMB 10,974 million (+10.3%), with a gross profit of RMB 2,330 million (+9.8%) and a net profit attributable to the company's owners of RMB 1,312 million (+26.9%) [43] Manufacturing and Production - The company operates two major manufacturing bases in China and Thailand, and has established sales centers in China, North America, and Europe[21] - The company plans to establish a second overseas tire production base in Kedah, Malaysia, with a total investment of approximately USD 380 million, aiming for an annual production capacity of 6 million semi-steel tires and 600,000 all-steel tires, expected to generate an annual output value of USD 270 million upon reaching full capacity[33] - The company is launching an off-the-road (OTR) tire project in Shandong, with a total investment of approximately RMB 1.17 billion, targeting an annual production capacity of 840,000 high-performance engineering tires and 10,000 giant engineering tires, projected to achieve an annual output value of RMB 1 billion by 2029[33] - The Shandong tire production base's annual capacity for semi-steel tires is 330,000 units, with a utilization rate of 97.8% in 2024[71] - The Thailand tire production base has an annual capacity of 2 million units for semi-steel tires, with a utilization rate of 87.1% in 2024[71] Research and Development - The company plans to continue investing in research and development to enhance its product offerings and market presence[21] - The company has achieved significant technological breakthroughs in product development, with two projects awarded the second prize of the Shandong Province Rubber Industry Science and Technology Award, and six projects reaching international advanced or domestic leading standards[31] - The company is committed to improving organizational management and corporate culture to enhance operational efficiency[76] - The company is investing in R&D for new technologies, with an allocated budget of $50 million for the upcoming year[163] - Research and development expenses grew from approximately RMB 240.0 million in 2023 to approximately RMB 250.7 million in 2024, an increase of about 4.5%[107] Market Expansion and Sales - The company aims to enhance its global production capacity and strengthen sales and R&D as core drivers, focusing on high-quality products and services to meet market demands[32] - The company expanded its international marketing channels, adding 7 new sovereign markets and developing 66 new customers, resulting in a 22% year-on-year increase in sales to existing customers[54] - The sales volume in the international marketing business reached 19.93 million units, a year-on-year increase of 14.8%, with revenue of RMB 7,536.8 million, up 19.1%[54] - The company aims to enhance its market presence by deepening cooperation with OEMs and targeting high-value customer segments in the commercial vehicle tire market[96] - The company is actively expanding its international market presence, launching new products tailored for North America and Europe, including all-season and high-performance tires[84] Sustainability and Environmental Initiatives - The company is committed to green and sustainable development, promoting the use of environmentally friendly materials and enhancing tire recycling technologies[98] - The company invested RMB 12.5 million in 2024 for the upgrade of waste gas treatment facilities, further reducing VOC emissions[91] - The company achieved EcoVadis bronze certification, ranking in the top 35% globally for sustainability practices[91] - The introduction of a green supply chain system aims to promote sustainable practices among suppliers, enhancing supply chain resilience [48] Corporate Governance and Management - The company has a robust management team with members holding advanced degrees and professional certifications, enhancing its operational capabilities[175] - The company has a history of appointing experienced professionals to its board, ensuring strong governance and oversight[172] - Mr. Jiang Xizhou appointed as Executive President effective December 30, 2024, after serving in various management roles since 2019[160] - The company appointed Mr. Huang Xiaolei as Chief Financial Officer starting June 2023, who has extensive experience in financial management from previous roles in various companies[174] Employee Development and Engagement - The group has implemented a performance management system with a coverage rate of over 90% for 124 positions across five major sequences, enhancing employee capability evaluation[151] - The group has established a digital learning platform to facilitate knowledge sharing and improve employee training, adapting to the demands of the digital age[149] - The group has a strong focus on talent development, with over 90% coverage in technical certification for skilled workers[151] - The company has granted a total of 35,050,000 stock options under the 2021 Stock Option Plan, with additional grants in subsequent years[153] Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[162] - The company is exploring potential acquisitions to enhance its product portfolio, with a focus on companies in the tech sector[165] - A new product line is set to launch in Q2 2025, expected to contribute an additional $20 million in revenue[166] - The board has approved a new risk management strategy to mitigate potential market volatility impacts[168]

Investment Rating - The report indicates that the company is a leading player in the domestic tire industry, with a focus on overseas production capacity and improving earnings quality [2][3]. Core Insights - The company has established a significant overseas production capacity, which enhances its profitability due to lower tax rates [2][3]. - The company’s earnings quality has steadily improved, with a notable increase in net profit and revenue in the first half of 2024 [14][24]. - The company has a stable shareholding structure, with the largest shareholder holding 69.63% of the shares [6][8]. Company Overview - The company, Prinx Chengshan Holdings, is headquartered in Rongcheng, Shandong, China, and has been in operation since 1976, focusing on tire design, R&D, manufacturing, and sales [3]. - It has developed production bases in China and Thailand, along with sales centers in China, North America, and Europe, forming a global development layout [3][4]. Financial Performance - In the first half of 2024, the company achieved a revenue of 5.363 billion yuan, a year-on-year increase of 23.74%, and a net profit of 811 million yuan, up 148.04% year-on-year [14][24]. - The gross margin and net margin for the first half of 2024 were 24.62% and 15.08%, respectively, indicating a strong profitability trend [24][25]. Market Position - The company has a significant market share in the domestic tire industry, with a continuous increase in the market share of Chinese tire companies, reaching 17.52% in 2023 [49]. - The company’s sales in the Americas accounted for 33.14% of total sales in the first half of 2024, reflecting its successful expansion into North America [14]. Strategic Initiatives - The company has implemented a differentiated brand strategy with four well-known tire brands: PRINX, Chengshan, Austone, and Fortune [10]. - It has expanded its market presence in North America through partnerships, such as becoming the official tire sponsor for USA Pickleball [12]. Operational Efficiency - The company maintains a high asset turnover ratio of 1.0 and an inventory turnover ratio of 5.4, indicating strong operational efficiency compared to peers [40].

Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 5,363.4 million, a 23.7% increase year-over-year from RMB 4,336.2 million[9]. - Profit before tax for the same period was RMB 892.3 million, up 148.0% compared to RMB 378.1 million in 2023[9]. - Net profit attributable to shareholders was RMB 811.4 million, representing a 148.0% increase from RMB 327.1 million in the previous year[9]. - The gross profit margin improved to 24.6%, an increase of 7.6 percentage points year-over-year[13]. - Revenue for the reporting period reached approximately RMB 5,363.4 million, an increase of 23.7% year-on-year, with a gross profit of approximately RMB 1,320.5 million, up 60.4%[21]. - The profit attributable to the owners of the company was approximately RMB 811.4 million, reflecting a significant year-on-year increase of 148.0%[21]. - EBITDA for the period was approximately RMB 1,195.3 million, marking an 82.5% year-on-year growth, with an EBITDA margin of 22.3%, up 7.2 percentage points[21][23]. - The company's operating profit for the six months ended June 30, 2024, was approximately RMB 911.3 million, a 120.9% increase from RMB 412.5 million in the same period of 2023[96]. - Total comprehensive income for the period rose from approximately RMB 438.0 million to about RMB 832.7 million, an increase of 90.1% year-on-year, primarily due to a net profit increase of approximately RMB 484.3 million[101]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 10,654.7 million, compared to RMB 10,028.4 million at the end of 2023[10]. - The company’s total liabilities decreased to RMB 4,575.9 million from RMB 5,251.2 million in 2023[10]. - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately RMB 574.1 million, a decrease of about RMB 151.9 million from RMB 726.0 million as of December 31, 2023[102]. - The company's inventory increased to approximately RMB 1,730.0 million as of June 30, 2024, up about RMB 92.5 million from RMB 1,637.5 million as of December 31, 2023, due to business expansion[104]. - Trade receivables increased to approximately RMB 2,216.7 million as of June 30, 2024, an increase of about RMB 356.4 million from RMB 1,860.4 million as of December 31, 2023, attributed to higher sales revenue[106]. - The company's bank borrowings as of June 30, 2024, were approximately RMB 868.8 million, down from RMB 1,211.3 million as of December 31, 2023[102]. - The current ratio improved to approximately 1.3 as of June 30, 2024, compared to 1.1 as of December 31, 2023[103]. - The capital debt ratio as of June 30, 2024, was 5.1%, down from 8.7% as of December 31, 2023[114]. Market and Sales Performance - In the first half of 2024, China's rubber tire production increased by 10.5% year-over-year, reaching approximately 526 million units[16]. - The domestic automobile ownership reached 345 million vehicles by June 2024, with new energy vehicles accounting for 24.72 million units, a 30.1% increase year-over-year[17]. - The company sold approximately 13.8 million tires during the reporting period, representing a year-on-year growth of 19.3%[21]. - Domestic dealer channel revenue was approximately RMB 1,244.6 million, a year-on-year increase of 10.3%, while international dealer channel revenue was approximately RMB 3,511.9 million, up 28.8%[22]. - International marketing achieved revenue of approximately RMB 3,511.9 million, representing a year-on-year increase of about 28.8% from RMB 2,727.0 million in 2023[42]. - Revenue from direct sales to automobile manufacturers was approximately RMB 606.9 million, up 26.3% from RMB 480.7 million in the same period of 2023, driven by increased supply to medium and heavy-duty trucks and passenger vehicles[44]. - Sales of all-steel radial tires generated revenue of approximately RMB 3,063.1 million, a 10.4% increase from RMB 2,774.8 million, driven by a 10.8% increase in sales volume[80]. - Sales of semi-steel radial tires increased by 47.6% to approximately RMB 2,205.4 million, primarily due to a 24.1% increase in sales volume and a rise in average selling price[80]. Product Development and Innovation - The company launched the "H Load Series" commercial tires, utilizing new technologies to enhance performance for complex domestic transport environments[32]. - The "PRO Premium Series" was introduced, targeting the high-end market with eight new patterns and twelve products, aiming to become a leader in high-end commercial tires[35]. - The company has increased R&D investment in new materials, focusing on bio-based, renewable, and high-performance rubber, enhancing tire safety, durability, and fuel economy[57]. - The company has developed new products including a new type of all-season tire and winter tires, with a total of 429 intellectual property rights obtained, including 21 invention patents[58]. - The company launched 300 new products during the reporting period, including 14 all-steel radial tires and 286 semi-steel radial tires, enhancing its product line and market competitiveness[65]. - The company achieved significant breakthroughs in low rolling resistance technology, with the S01 product reaching the EU label A standard, contributing to energy savings in the commercial vehicle industry[68]. - The company is actively expanding its international market presence with new product launches in North America and Europe, including the introduction of the "Hua Ren PLUS" ultra-high-performance tire[66]. Operational Efficiency and Cost Management - The company implemented 2,025 rationalization suggestions in the first half of 2024, enhancing operational efficiency through Lean Six Sigma projects[25]. - The company optimized its supply chain system using big data analysis to predict market demand and improve procurement efficiency[26]. - The company optimized logistics costs by locking in shipping prices and managing logistics expenses effectively, alleviating cost pressures[41]. - The company has implemented a cost automation system to enhance financial management and decision-making, marking a step towards intelligent financial operations[63]. - The company will continue to optimize its operational efficiency and deepen cost awareness across all levels[78]. Strategic Initiatives and Market Expansion - The company is expanding its international presence by establishing overseas production bases to enhance competitiveness amid rising trade barriers[20]. - The company developed 37 new overseas dealers during the reporting period and launched key new products in overseas markets, enhancing global competitiveness[41]. - The company signed a strategic cooperation agreement with Marangoni, aiming to improve the lifespan of commercial vehicle tires and reduce CO2 emissions[50]. - The company is focusing on digitalization and smart transformation in the tire industry to achieve high-quality development amid global economic challenges[76]. - The company plans to enhance brand influence and sales of mid-to-high-end products in the domestic commercial vehicle tire replacement market[77]. - The company aims to strengthen its presence in weak and blank international markets, focusing on increasing sales of all-steel products[77]. Employee and Governance - The group had a total of 6,252 employees as of June 30, 2024, down from 6,532 employees as of December 31, 2023[138]. - Employee benefit expenses for the six months ended June 30, 2024, were approximately RMB 351.5 million, compared to RMB 316.6 million for the same period in 2023[138]. - The group organized 7 safety training sessions and conducted 77 special drills and 4 emergency drills during the reporting period to enhance employees' emergency response capabilities[131]. - The company has implemented a performance management system and a value-oriented compensation system to align employee remuneration with performance outcomes[138]. - The group has established partnerships with several universities for talent development and training, enhancing its employer brand in the academic community[140]. - The company has adopted a stock option plan to attract and retain key management personnel, granting a total of 35,050,000 stock options under the new plan initiated in 2021[143]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[187]. - The company has complied with the Corporate Governance Code during the reporting period[182]. Shareholder Information and Dividends - The company has proposed an interim dividend of HKD 0.15 per share, totaling approximately HKD 96 million, expected to be paid around October 23, 2024[184]. - As of June 30, 2024, the controlling shareholders hold a combined 69.63% of the company's issued share capital[180]. - Major shareholder China National Heavy Duty Truck Group holds 54,873,500 shares, representing 8.62% of the company[196]. - Chengshan Group holds 436,600,000 shares, accounting for 68.57% of the company[196]. - Beijing Zhongmingxin Investment Co., Ltd. has a controlling interest in 443,359,500 shares, which is 69.63% of the company[196]. - The company has a significant concentration of ownership, with the top three shareholders controlling over 69% of the shares[196]. Risk Management and Compliance - The company has integrated climate risk management into its overall risk management framework, focusing on both physical and transition risks associated with climate change[131]. - The company is closely monitoring the international economic and political environment to adjust its development strategy for the Thailand tire production base, ensuring stable operations[129]. - The average anti-dumping tax rate applicable to Prinx Thailand's products is 4.95%, following the preliminary ruling from the U.S. Department of Commerce on August 9, 2024, with a final ruling expected in early 2025[125]. - The company is actively participating in anti-dumping investigations to reduce export tax rates, significantly lowering the tax rate for exports to the U.S. since 2019[124]. Future Outlook - The company anticipates a slight decrease in orders due to domestic market conditions and international shipping costs, with strong demand for semi-steel radial tires expected to weaken in the second half of 2024[73]. - The report indicates that there are no significant changes in the governance structure or executive compensation as of June 30, 2024[195]. - The company has not provided specific future guidance or performance outlook for the upcoming quarters[195].

Investment Rating - Buy (Maintained) [1] Core Views - The company achieved significant revenue and profit growth in the first half of 2024, with revenue reaching 5.381 billion yuan, a year-on-year increase of 23.74%, and net profit attributable to the parent company reaching 811 million yuan, a year-on-year increase of 148.04% [2] - The gross profit margin improved to 24.62%, an increase of 5.64 percentage points year-on-year, and the net profit margin reached 15.08%, an increase of 7.56 percentage points year-on-year [2] - The company's tire sales increased by 19.3% year-on-year, with semi-steel tire sales growing by 24.1% and all-steel tire sales growing by 10.8% [2] - The company's production capacity utilization rates are high, with semi-steel tire utilization rates at 97.6% in Thailand and 96.5% in Shandong [3] - The company is expected to achieve a CAGR of 16.3% in net profit attributable to the parent company from 2024 to 2026 [7] Financial Performance - Revenue for 2024E is projected to be 10.878 billion yuan, with a growth rate of 9.35% [8] - Net profit attributable to the parent company for 2024E is expected to be 1.314 billion yuan, with a growth rate of 27.18% [8] - EPS for 2024E is forecasted to be 2.06 yuan, with a P/E ratio of 3.54 [8] - The company's ROE is expected to be 21.58% in 2024E, up from 19.02% in 2023A [8] Production and Capacity - The company's production capacity in Thailand and Shandong is steadily increasing, with all-steel tire capacity at 2 million and 7.4 million units, and semi-steel tire capacity at 10 million and 11.53 million units, respectively [3] - The company completed the optimization and upgrade of the semi-steel radial tire production line in Shandong in Q2 2024, and the third-phase project in Thailand is expected to reach full production by Q4 2024 [3] Market and Industry Trends - Domestic rubber tire production increased by 10.1% year-on-year in the first seven months of 2024, while exports grew by 9.7% [2] - The company is focusing on green and high-performance products, launching 300 new products in the first half of 2024, including 14 all-steel radial tires and 286 semi-steel radial tires [7] Profitability and Cost Management - The company's profitability was less affected by cost pressures in the first half of 2024, with raw material prices increasing by 6.5% in Q2 compared to Q1 [2] - The company implemented price increases in Q1 and Q2 to pass on cost pressures, maintaining strong profitability [2]

研究报告 Research Report 25 Aug 2024 浦林成山 Prinx Chengshan Holdings (1809 HK) 2024H1 净利同比增长 148%，重点项目为公司增长奠定基础 2024H1 Net Profit +148% YoY & Key projects lay the foundation for company growth [Table_yemei1] 观点聚焦 Investment Focus | --- | --- | |-----------------------------------------------|---------------------| | [Table_Info] 维持优于大市 Maintain OUTPERFORM | | | 评级 | 优于大市 OUTPERFORM | | 现价 | HK$7.98 | | 目标价 | HK$9.43 | | HTI ESG | 5.0-5.0-5.0 | E-S-G: 0-5, (Please refer to the Appendix for ESG comments) | --- | -- ...

Group 1 - Key Point 1: The company emphasizes the importance of cautious investment decisions for investors [1] - Key Point 2: The meeting introduces key executives including the Executive Vice President, Chief Financial Officer, and Investor Relations Officer [1] Q&A Session All Questions and Answers Question: Who are the key executives participating in the conference call? - The conference call features the Executive Vice President, Chief Financial Officer, and Investor Relations Officer [1]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 5,363,381 thousand, a 23.7% increase from RMB 4,336,159 thousand in the same period of 2023[11]. - The profit before tax was RMB 892,300 thousand, compared to RMB 378,064 thousand in the previous year, reflecting a significant increase of 135.5%[11]. - The net profit for the period was RMB 811,426 thousand, up from RMB 327,136 thousand, marking a year-on-year growth of 148.5%[11]. - Revenue for the reporting period reached approximately RMB 5,363.4 million, an increase of 23.7% year-on-year, with a gross profit of approximately RMB 1,320.5 million, up 60.4%[16]. - The profit attributable to the owners of the company was approximately RMB 811.4 million, reflecting a significant year-on-year increase of 148.0%[16]. - The EBITDA for the period was approximately RMB 1,195.3 million, marking an 82.5% year-on-year growth, with an EBITDA margin of 22.3%, up 7.2 percentage points[16]. - The group's operating profit for the six months ended June 30, 2024, was approximately RMB 911.3 million, a 120.9% increase from RMB 412.5 million in the same period of 2023[61]. - The net profit for the reporting period increased by RMB 484.3 million (or 148.0%) to approximately RMB 811.4 million, compared to RMB 327.1 million for the six months ended June 30, 2023[63]. - Total comprehensive income for the reporting period rose to approximately RMB 832.7 million, a 90.1% increase from RMB 438.0 million in the previous year[65]. Assets and Liabilities - Total assets as of June 30, 2024, reached RMB 10,654,682 thousand, an increase from RMB 10,028,405 thousand in the same period of 2023[11]. - The company’s total liabilities decreased to RMB 4,575,892 thousand from RMB 5,251,225 thousand year-on-year, indicating improved financial health[11]. - The group's cash and cash equivalents as of June 30, 2024, were approximately RMB 574.1 million, a decrease of RMB 151.9 million from RMB 726.0 million as of December 31, 2023[66]. - The group's inventory increased to approximately RMB 1,730.0 million as of June 30, 2024, up by RMB 92.5 million from RMB 1,637.5 million as of December 31, 2023, due to business expansion[67]. - Trade receivables increased to approximately RMB 2,216.7 million as of June 30, 2024, an increase of RMB 356.4 million from RMB 1,860.4 million as of December 31, 2023, attributed to higher sales revenue[68]. - The capital debt ratio as of June 30, 2024, was 5.1%, down from 8.7% as of December 31, 2023[75]. - The group's bank borrowings were approximately RMB 868.8 million as of June 30, 2024, a decrease from RMB 1,211.3 million as of December 31, 2023[66]. Sales and Market Performance - The company sold approximately 13.8 million tires in the first half of 2024, representing a year-on-year growth of 19.3%[16]. - Domestic dealer channel revenue was approximately RMB 1,244.6 million, a year-on-year increase of 10.3%, while international dealer channel revenue reached approximately RMB 3,511.9 million, up 28.8%[16]. - The company expanded its passenger car tire replacement channel, increasing the proportion of 17-inch and above products to 45.7%[23]. - The company is facing challenges in the commercial vehicle tire segment due to sluggish demand influenced by real estate investment and logistics issues, while passenger vehicle tire demand remains strong[14]. - The company is actively expanding its international market presence, launching new products in North America and Europe, including the "Hua Ren PLUS" ultra-high-performance tire[42]. Research and Development - The company has increased R&D investment in new materials, achieving 429 intellectual property rights, including 21 invention patents, enhancing tire safety, durability, and fuel economy[38]. - Research and development expenses decreased by approximately 14.2% from RMB 126.7 million to RMB 108.7 million, primarily due to the reversal of certain costs related to the 2021 equity incentive plan[56]. - The company launched the "H Heavy Duty Series" commercial tires, utilizing new technologies to enhance performance for complex transportation environments[20]. - The company developed 37 new overseas dealers during the reporting period, enhancing its international sales coverage[27]. Corporate Governance and Shareholder Information - The company has complied with the Corporate Governance Code during the reporting period[110]. - The controlling shareholder holds a direct and indirect beneficial ownership of 69.63% of the company's issued share capital[109]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[115]. - The shareholder annual general meeting was successfully held on May 31, 2024, with board members and external auditors present[115]. - The shareholding structure indicates significant control by a few major shareholders, with over 69% held by the top two shareholders[119]. Sustainability and Community Engagement - The company has been recognized as a "green factory" by the Ministry of Industry and Information Technology of China, demonstrating its commitment to sustainable development and environmental protection[45]. - The company is participating in community development initiatives, including volunteer actions for local road improvements and donations to local schools in Thailand[45]. Challenges and Outlook - The company is facing a slight decrease in orders due to a sluggish domestic market and international shipping price impacts, with expectations of a challenging economic outlook for the second half of 2024[46]. - The company is currently evaluating the impact of new accounting standards that will take effect in the upcoming fiscal years, indicating a proactive approach to compliance[137].

Investment Rating - The report maintains a "Buy" rating for Prinx Chengshan (1809 HK) with a target price of HKD 13 54 [1] Core Views - Prinx Chengshan is expected to achieve a significant year-on-year growth in net profit attributable to the parent company of 130%-160% in H1 2024 reaching RMB 752-850 million [2] - The company's tire sales volume in H1 2024 reached 13 8 million units a 19% increase year-on-year with overseas market sales growing by 21% and passenger car tire sales by 25% [2] - The company plans to add 2 33 million units/year of semi-steel tire capacity in 2024 with new capacity expected to contribute to performance in the second half of the year [2] - The reduction in export tax rates for the company's Thailand base from 17 06% to 4 52% is expected to boost US orders and improve performance [2] - The report forecasts a 16 3% CAGR for the company's net profit attributable to the parent company from 2024 to 2026 [2] Financial Performance and Projections - The company's revenue is projected to grow from RMB 10 879 billion in 2024 to RMB 12 294 billion in 2026 with net profit attributable to the parent company increasing from RMB 1 314 billion to RMB 1 625 billion over the same period [3][9] - EPS is expected to rise from RMB 2 06 in 2024 to RMB 2 55 in 2026 with ROE maintaining above 20% [3][9] - The company's gross margin is forecasted to improve from 21 33% in 2023 to 24% in 2026 [8] Capacity and Market Demand - The company's semi-steel tire capacity utilization rate was 90 1% in Thailand and 96 8% in Shandong in 2023 [2] - Domestic rubber tire production and exports in H1 2024 increased by 10 6% and 10 2% respectively indicating strong demand [2] - The company's semi-steel tire capacity is expected to increase by 233 million units/year in 2024 with new capacity coming online in the second half of the year [2] Valuation and Peer Comparison - The report values Prinx Chengshan at 6x PE for 2024 based on its global layout and improved profitability [10] - Compared to peers such as Sentury Tire General Tire and Sailun Tire Prinx Chengshan's PE ratio is lower at 3 23x for 2024 [11] Business Segments and Assumptions - The report assumes a 2% annual price increase for all-steel tires and a 3% increase for semi-steel tires from 2024 to 2026 [7] - Semi-steel tire production is expected to grow from 19 38 million units in 2024 to 20 45 million units in 2026 [7] - All-steel tire production is projected to increase from 8 18 million units in 2024 to 8 93 million units in 2026 [7]