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]

那么普林呢是我们公司这几年新打造的一个品牌那么他的这个slogan是为电动时代而生我们在中国市场推出的一些电动车轮胎都是在这个普林的品牌下面去进行一个营销 那么我们普林城商的这个公司体量呢按照23年全球商业企业75强的排行榜呢我们当时是以22年的营业收入来计呢我们当时是位列第28位那么希望在今年的这个情况呢会有一个改变因为23年我们的营业收入增长是领先了几个位置 那么在中国的这个橡胶工业百强企业中轮胎类呢我们当时二三年呢是位列第八位啊那么这个排名呢同样它是以二二年的营业收入来计那么如果是以二三年的营业收入来计呢我们有机会提前两到三个位置 这就是我们公司在行业中一个整体的一个体量那我们公司的发展历程的分为几个阶段那么公司的前身是荣城市橡胶厂那么他是在1976年是比较早开始发展这个轮胎轮胎这个行业在90年代的时候呢我们建立了国内首条的子午线轮胎生产线 在03年的时候,龙城市橡胶厂改制成为成山集团。那么在04年的时候,我们是中国当时的第三大轮胎制造商。 以及中国轮胎行业的一个三观网在05年到14年期间公司进入了一个合资期我们与美国库珀成立了一个库珀诚山山东轮胎有限公司那么我们是在14年的时候库珀提出退出当时诚山集团 ...

首先有请曹总各位下午好我是曹雪玉我是普林承商的投资者关系那么非常感谢今天下午大家有时间来我们一起交流一下我们普林承商的一个情况我今天的介绍是以我们公司2023年的年度业绩报告作为一个框架那么通过这样一个框架我们希望可以为各位介绍一下我们公司 我们的产品我们的市场以及我们的这个一些的这个这个不同的产品结构那我接下来就是首先介绍一下我们公司的概况 普利城山是一家拥有高增长网级的成熟轮胎制造商我们在山东和泰国有两大生产基地有三个产品品类主要是全钢胎半钢胎和斜焦胎那我们的产品是通过四个品牌销往全球市场首先是城山轮胎那么城山轮胎是我们最早的一个品牌那么它在卡克车司机这个领域有非常良好的口碑 那么我们为了在海外市场以及其他的一些细分市场推出我们的产品我们的奥通和复神就是这样的品是这样是通过奥通和复神这两个品牌来销往全球市场普林是我们新培育的一个品牌它主要侧重于一个高端的市场 在2023年的中国橡胶工业百强企业轮胎类的排名中我们以2022年的营业收入我们当时是位列中国轮胎的第八位那么我们根据2023年的营业收入我们目测应该我们是属于第五第六位是这样的一个体量 那普林城山的发展有它的这样一个历程那么它最早是在1976年在山东 ...

研究报告Research Report 24 May 2024 浦林成山 Prinx Chengshan Holdings (1809 HK) 2023 年净利润同比增长 162%，重点项目为公司增长奠定基础 2023 Net Profit +162% YoY & Key Projects Lay the Foundation for Company Growth [观Ta点bl聚e_焦yem Inevie1s] tment Focus [Tab维le_持Inf优o] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 评级 优于大市OUTPERFORM  2023 年净利润同比增长 162%。2023 年公司实现营收人民币 99.5 亿元，同比增长 22%。公司实现净利润人民币 10.3 亿元， 现价 HK$9.08 目标价 HK$9.43 同比增长 162%。2023 年，公司坚定不移地实施全球化战略， 通过智能制造、技术创新与精益管理，持续增强核心竞争优 HTI ESG 4.0-4.0-4.0 势。得益于在乘用车轮胎领域 ...

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 9,948.983 million, a 22.0% increase from RMB 8,151.952 million in 2022[11]. - Net profit for the same period was RMB 1,033.440 million, reflecting a significant increase of 162.4% compared to RMB 393.822 million in 2022[12]. - Gross profit margin improved to 21.3%, up from 14.3% in the previous year, indicating enhanced operational efficiency[12]. - EBITDA for the year was RMB 1.71 billion, reflecting a year-on-year growth of 102.4%[18]. - The gross profit for the fiscal year ending December 31, 2023, was approximately RMB 2,121.7 million, an increase of about 81.4% from RMB 1,169.8 million, resulting in a gross margin of 21.3% compared to 14.3% in 2022[65]. - The company's net profit for the fiscal year ending December 31, 2023, rose to approximately RMB 1,033.4 million, an increase of about RMB 639.6 million from RMB 393.8 million in the previous year, primarily due to increased revenue and lower raw material prices[74]. Assets and Liabilities - Total assets increased to RMB 10,602.448 million, a rise from RMB 9,985.743 million in 2022[12]. - The total liabilities decreased to RMB 5,168.705 million from RMB 5,533.874 million in 2022, improving the company's financial stability[12]. - The capital debt ratio as of December 31, 2023, was 8.7%, down from 19.1% in 2022, indicating improved financial stability[84]. - Trade receivables increased to RMB 1,860.4 million as of December 31, 2023, up by approximately RMB 547.9 million from RMB 1,312.5 million in 2022, driven by revenue growth[79]. - Inventory as of December 31, 2023, was RMB 1,637.5 million, an increase of RMB 360.1 million from RMB 1,277.4 million in 2022, attributed to increased production and year-end raw material reserves[78]. Market and Sales Performance - The sales volume of semi-steel radial tires grew by 42.7%, while the sales volume of all-steel radial tires increased by 20.5%[19]. - The company sold approximately 25.0 million tires in 2023, representing a year-on-year increase of 35.1%[26]. - The average operating rate for semi-steel radial tires was 69%, an increase of 9.4% compared to 2022[23]. - The average operating rate for all-steel radial tires reached 60.2%, up by 8.2% year-on-year[23]. - The company's international marketing revenue amounted to RMB 6,326.2 million, reflecting a year-on-year growth of 11.9%, with approximately 49.1% of this revenue coming from the Thailand tire production base[36]. Research and Development - The company continues to focus on tire design, R&D, manufacturing, and sales, positioning itself as a leading manufacturer in the Chinese commercial tire market[14]. - Research and development expenses increased by approximately 4.7% to RMB 240.0 million, reflecting the growth in R&D projects[68]. - A total of 463 new products were developed in 2023, including 70 all-steel radial tires and 393 semi-steel radial tires[50]. - The company obtained 52 new patents in 2023, bringing the total to 382 intellectual property rights granted[50]. - The company is actively developing 26 new all-steel radial tire patterns and 181 semi-steel radial tire patterns to meet market demand and expand overseas[54]. Strategic Initiatives - The company aims to maintain its core competitiveness and market leadership by leveraging its R&D advantages into product competitiveness[21]. - The company plans to continue developing high-performance products and expanding its market presence through innovative strategies[21]. - The company is focusing on internationalization and enhancing its management philosophy to optimize production, R&D, and sales processes[21]. - The company has established friendly relations with local governments and communities in Thailand, engaging in social responsibility activities[57]. - The company is committed to sustainable development by promoting the use of environmentally friendly materials and enhancing tire retreading technology[59]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[108]. - The board includes members with significant legal and financial expertise, enhancing governance and strategic oversight[110]. - The company has established a robust framework for risk management and strategic development through its committees[110]. - The company has undergone changes in its board of directors, with new appointments effective from March 28, 2024[118]. - The company has a focus on enhancing its international sales operations, particularly in Southeast Asia, Oceania, and Russia[115]. Shareholder Information - The company reported a final dividend of HKD 0.30 per ordinary share for the year ending December 31, 2023, subject to shareholder approval at the annual general meeting on May 31, 2024[137]. - The company has confirmed that no shareholders have waived or agreed to waive any dividends for the year ended December 31, 2023[176]. - The controlling shareholders hold 69.43% of the issued share capital of the company as of the report date[191]. - Major shareholder Sinotruk (BVI) Limited holds 61,400,000 shares, accounting for 9.65% of the company's equity[169]. - The company has maintained at least 25% of its issued shares held by the public, complying with the minimum public float requirement[193].

[Table_StockInfo] 买入 2024年 04月 01日 （维持） 证券研究报告• 2023年年报点评 当前价： 6.90港元 浦林成山（1809.HK） 汽车 目标价： 11.98港元 全年业绩大幅增长，加码泰国三期项目 投资要点 西南证券研究发展中心 [T ab事le件_S：u3m月m2a8ry日] ，公司发布2023年年度业绩公告，2023年实现营业收入99.49 亿元，同比增长22.04%；归母净利润10.33亿元，同比增长162.18%；毛利率 [分Ta析bl师e_：Au郑th连or声] 为 21.3%，同比提高7.0pp，净利率为10.4%，同比提高5.6pp。 执业证号：S1250522040001 电话：010-57758531  2023年轮胎行业需求复苏，公司产品销量大增。据国家统计局和海关总署数据， 邮箱：zlans@swsc.com.cn 2023年，国内橡胶轮胎外胎产量累计9.9亿条，同比增长15.5%；出口累计6.2 亿条，同比增长11.6%，轮胎消费需求回升明显。2023年公司实现轮胎销量2500 联系人：冯安琪 万条，同比增长 35.1%。其中，全钢胎销量 81 ...

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 9,948,983,000, representing a year-over-year increase of 22.0% from RMB 8,151,952,000 in 2022[9]. - The gross profit for the same period was RMB 2,121,708,000, with a gross margin of 21.3%, up from 14.3% in 2022, indicating a significant improvement in profitability[9][14]. - The net profit attributable to shareholders was RMB 1,033,391,000, reflecting a remarkable increase of 162.4% compared to RMB 393,783,000 in the previous year[9][14]. - Basic earnings per share for the year were RMB 1.62, compared to RMB 0.62 in 2022, showcasing strong earnings growth[9]. - The company’s EBITDA for 2023 was RMB 1.71 billion, reflecting a growth of 102.4% year-on-year[25]. - The total sales revenue for the year was approximately RMB 9,949 million, reflecting a year-on-year growth of 22.0%, while gross profit reached approximately RMB 2,122 million, up 81.4%[38]. - The net profit attributable to the company's owners for the year was approximately RMB 1,033 million, representing a year-on-year increase of 162.4%[38]. Asset and Liability Management - Total assets increased to RMB 10,602,448,000, up from RMB 9,985,743,000 in 2022, indicating robust asset growth[11]. - The company's total liabilities decreased to RMB 5,168,705,000 from RMB 5,533,874,000 in 2022, improving the overall financial stability[11]. - The return on equity (ROE) improved to 20.9% in 2023, compared to 9.4% in 2022, highlighting enhanced shareholder value creation[13]. - The capital debt ratio as of December 31, 2023, was 8.7%, down from 19.1% in 2022, calculated as net earnings/debt divided by total capital[115]. - The company’s bank borrowings decreased to approximately RMB 1,211.30 million from RMB 2,203.30 million in 2022, indicating improved financial management[106]. Market Expansion and Sales Growth - The sales volume of semi-steel radial tires grew by 42.7%, while the sales volume of all-steel radial tires increased by 20.5%[27]. - The company established three major sales centers in China, North America, and Europe to enhance its global development layout[19]. - The company sold approximately 25.0 million tires during the reporting period, a year-on-year increase of 35.1%, with sales of all-steel radial tires at about 8.1 million (up 20.5%) and semi-steel radial tires at about 16.4 million (up 42.7%)[38]. - The company expanded its international marketing channels, achieving a sales volume of 17.36 million tires, a 32.8% increase year-on-year, and an operating income of RMB 6,326.2 million, an 11.9% increase[52]. - Revenue from direct sales to automotive manufacturers increased by 64.8% to RMB 1,020.3 million, up from RMB 619.1 million in 2022, primarily due to growth in the domestic commercial vehicle and export markets[54]. Research and Development - The company plans to continue its internationalization strategy and enhance product quality and innovation capabilities to meet high-end tire market demands[30]. - The company developed 463 new products during the reporting period, including 70 all-steel radial tires and 393 semi-steel radial tires, enhancing market competitiveness[72]. - Research and development expenses rose by approximately 4.7% to RMB 240.00 million, reflecting an increase in R&D projects[95]. - The company is committed to enhancing its research and development capabilities to adapt to market changes and improve product offerings for various regions[128]. - The company has allocated 50 million for research and development in new tire technologies, aiming to enhance performance and sustainability[176]. Strategic Initiatives - The company maintains a strategic focus on cost leadership, efficiency-driven operations, and global expansion, with production bases in China and Thailand[15][17]. - Future outlook includes continued investment in research and development for new tire technologies and expansion into international markets[15]. - The company plans to enhance its market presence through strategic partnerships and potential acquisitions to drive growth[15]. - The company is actively pursuing international expansion and has established overseas production bases to optimize capacity and mitigate trade policy risks[35]. - The company is implementing a multi-brand and differentiated development strategy to enhance brand awareness and influence through product, brand, and market strength[55]. Sustainability and Corporate Responsibility - The group is committed to sustainable development and has been recognized as a "Green Low-Carbon Enterprise" in Shandong Province[81]. - The company is pursuing a "green and sustainable development" strategy by promoting the use of environmentally friendly materials and enhancing tire recycling technologies[85]. - The company is integrating climate risk management into its overall risk management framework[131]. - The company is preparing emergency plans and safety stock measures to address potential disruptions caused by natural disasters and extreme weather events[131]. Governance and Management - The company has a diverse board with members holding various qualifications, including CPA and advanced financial management certifications, enhancing governance and oversight capabilities[149][152][155]. - The company is focused on strategic guidance and risk management, with Mr. Che Hongzhi serving as the chairman and providing professional advice since the group's inception[149]. - The board includes independent directors with extensive legal and financial backgrounds, which strengthens the company's compliance and strategic decision-making processes[155]. - The company has established subsidiaries in various regions, including Thailand and Hong Kong, to support its market expansion strategy[146]. - The company emphasizes the importance of continuous professional development for its management team, with members holding advanced degrees and certifications[147][152].

Financial Performance - For the first half of 2023, the company's revenue reached RMB 4,336,159 thousand, representing an increase of 6.0% compared to RMB 4,091,195 thousand in the same period of 2022[12]. - The company's profit before tax was RMB 378,064 thousand, a significant increase of 184.5% from RMB 133,034 thousand in the first half of 2022[12]. - The net profit attributable to shareholders was RMB 327,134 thousand, up 106.5% from RMB 158,577 thousand in the same period last year[12]. - Revenue for the reporting period was approximately RMB 4,336.2 million, an increase of 6.0% year-on-year, while gross profit rose by 53.3% to approximately RMB 823.1 million[19]. - Net profit attributable to the company's owners reached approximately RMB 327.1 million, marking a significant year-on-year increase of 106.3%[19]. - Operating profit for the six months ended June 30, 2023, was approximately RMB 412.5 million, an increase of about RMB 254.8 million compared to the previous year[64]. - Total comprehensive income for the period was RMB 437,996 thousand, compared to RMB 289,469 thousand in the previous year, marking a growth of 51.6%[132]. - Basic and diluted earnings per share for the period were RMB 0.51, compared to RMB 0.25 in the same period last year, reflecting a 104.0% increase[131]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 10,028,405 thousand, a slight decrease from RMB 10,313,272 thousand at the end of 2022[12]. - The company reported a total liability of RMB 5,251,225 thousand, down from RMB 6,208,052 thousand in the previous year[12]. - Cash and cash equivalents as of June 30, 2023, were approximately RMB 989.2 million, a decrease of about RMB 183.5 million from RMB 1,172.7 million as of December 31, 2022[68]. - Trade receivables increased to approximately RMB 1,550.0 million as of June 30, 2023, from RMB 1,312.5 million as of December 31, 2022, reflecting higher sales revenue[72]. - The capital-to-debt ratio as of June 30, 2023, was 14.3%, down from 19.1% as of December 31, 2022, calculated based on earnings/debt net of total capital[80]. Market and Sales Performance - The demand for tires in the domestic market improved significantly, driven by the recovery of the Chinese economy and increased overseas market demand[18]. - In the first half of 2023, the production and sales of commercial vehicles in China increased by 16.9% and 15.8% year-on-year, respectively[18]. - The company sold approximately 11.5 million tires in the first half of 2023, representing a year-on-year growth of 22.8%[19]. - The group's revenue from domestic distributors reached approximately RMB 1,128.5 million, an increase of 29.4% compared to RMB 872.3 million in the same period of 2022[29]. - International marketing generated revenue of approximately RMB 2,727.0 million, a decrease of about 5.5% from RMB 2,887.1 million in the same period of 2022, with 44.5% of revenue coming from the Thailand tire production base[29]. Research and Development - The company aims to lead tire innovation and contribute to sustainable development in the industry[3]. - The company completed 97 Lean Six Sigma projects at its Shandong tire production base, with 1,018 rationalization suggestions implemented in the first half of 2023[21]. - The company has accumulated 347 intellectual property rights, including 16 invention patents, 181 utility model patents, and 150 design patents by the end of the reporting period[42]. - The company has made breakthroughs in key technologies such as A-class rolling resistance, wet grip, and heavy-duty tire bead performance improvement, contributing to product innovation[42]. - The company has enhanced its digital R&D capabilities through the construction of a Product Lifecycle Management (PLM) platform, improving design and testing capabilities[42]. Sustainability and Environmental Initiatives - The company is promoting the use of new environmentally friendly materials and enhancing tire retreading technology as part of its commitment to sustainable development[50]. - The company has initiated a "carbon footprint" project at its Shandong tire production base to monitor and reduce carbon emissions[48]. - The group organized 77 emergency drills for flood prevention and fire safety at its Shandong tire production base during the reporting period to manage climate change risks[88]. Employee and Management - Employee welfare expenses for the first half of 2023 were approximately RMB 316.6 million, compared to RMB 289.5 million for the same period in 2022, reflecting a year-on-year increase[92]. - The company employed 6,405 staff as of June 30, 2023, up from 6,144 employees at the end of 2022, indicating a growth in workforce[92]. - The company has implemented a performance management system and a value-oriented compensation system to enhance employee engagement and productivity[92]. - The company has established partnerships with several universities for talent development, enhancing its employer brand and reputation in the industry[93]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[116]. - The company has maintained compliance with the corporate governance code throughout the reporting period[114]. - The company did not declare any interim dividend for the six months ended June 30, 2023[116]. Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, and liquidity risk, which are essential for ongoing risk management strategies[150]. - The group has not made significant changes to risk management policies since the year-end[150]. - The group reported a liquidity risk analysis showing no significant changes in the contractual undiscounted cash outflows of financial liabilities compared to the previous year-end[151].