Financial Performance - The net profit of GITI Tire's parent company for 2020 was CNY 79.50 million, with a legal reserve of CNY 7.95 million deducted, resulting in a distributable profit of CNY 262.71 million by the end of 2020[6]. - The company reported a retained earnings of CNY 218.02 million at the beginning of 2020, after distributing CNY 26.86 million during the year[6]. - GITI Tire's financial statements are prepared in accordance with accounting standards, reflecting the company's financial position and operational results accurately[5]. - The company's operating revenue for 2020 was ¥2,803,047,211.18, a decrease of 8.70% compared to ¥3,070,118,188.23 in 2019[23]. - Net profit attributable to shareholders was ¥59,636,247.45, down 31.35% from ¥86,865,756.40 in the previous year[23]. - Basic earnings per share decreased by 31.35% to ¥0.1754 from ¥0.2555 in 2019[24]. - The weighted average return on equity fell to 6.02%, a decrease of 3.20 percentage points from 9.22% in 2019[24]. - Cash flow from operating activities increased by 59.54% to ¥395,214,216.10, compared to ¥247,726,639.86 in 2019[23]. - Total assets at the end of 2020 were ¥2,951,795,566.60, a decrease of 2.80% from ¥3,036,740,635.60 in 2019[23]. - The company reported a significant increase in cash and cash equivalents, rising by 44.88% to ¥334 million from ¥231 million at the beginning of the year[33]. - The company’s net assets attributable to shareholders increased by 3.37% to ¥1,006,618,897.65 from ¥973,842,650.20 in 2019[23]. - The company achieved operating revenue of 2.803 billion RMB in 2020, a decrease of 8.70% year-on-year[41]. - Operating costs were 2.213 billion RMB, down 11.28% compared to the previous year[41]. - Net profit for the year was 125 million RMB, reflecting a decline of 30.87% year-on-year[41]. - The gross profit margin for the main business (tires) was 20.44%, an increase of 2.13 percentage points from the previous year[45]. Dividends and Profit Distribution - A cash dividend of CNY 0.55 per share (including tax) is proposed, totaling CNY 18.70 million, based on a total share capital of 340 million shares[6]. - The company plans to carry forward the remaining distributable profits to future years, with no capital reserve conversion or stock distribution planned for 2020[6]. - The company has not proposed a cash profit distribution plan for the reporting period despite having positive distributable profits[91]. Internal Controls and Audit Opinions - The audit report from Yongtuo Accounting Firm expressed a qualified opinion regarding the financial statements, indicating potential issues that investors should be aware of[5]. - The internal control audit report issued by Yongtuo Accounting Firm provided a negative opinion on the effectiveness of internal controls[9]. - The audit identified key audit matters, particularly regarding the completeness of related party relationships and transactions[165]. - The audit report emphasizes the importance of evaluating management's accounting policy choices and estimates[171]. - The audit confirmed that the related party transactions for the year 2020 followed the company's internal management processes and were approved at various levels[199]. Related Party Transactions - GITI Tire has not engaged in any non-operational fund occupation by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for external guarantees[9]. - The company continues to rely on related party transactions for procurement and sales, which are deemed necessary for its operations[104]. - The company has strengthened the management of related party transactions to minimize potential impacts on business independence[107]. - The company has implemented changes in accounting policies, specifically adopting the new revenue recognition standards effective January 1, 2020[97]. - The company has faced challenges in obtaining shareholder approval for related party transactions, which has led to ongoing discussions with minority shareholders[96]. - The company has engaged external agencies to audit the execution of related party transactions[107]. - The audit confirmed that the procurement of fixed assets from related parties adhered to fair trading and market principles, with no significant price differences from third-party evaluations[192]. Market Conditions and Industry Challenges - The overall market for tires faced significant challenges due to the COVID-19 pandemic, leading to a decline in global sales revenue[58]. - The tire industry in China is facing significant pressure due to economic downturns, trade tensions, and environmental regulations, leading to increased industry concentration[60]. - The company anticipates a stabilization and steady growth in tire market demand due to improved economic conditions and government consumption promotion policies[32]. - The domestic tire manufacturing industry is facing increased competition due to economic downturns and stricter environmental policies, leading to a more challenging operating environment[82]. - The company recognizes the risk of international trade barriers impacting exports, particularly due to ongoing trade disputes and anti-dumping measures in various markets[84]. Research and Development - Research and development expenses increased by 144.71% to 19.5 million RMB, indicating a focus on innovation[42]. - The company is committed to increasing R&D investments to improve product performance and meet rising consumer demands for safety and environmental standards[78]. - The company is focusing on upgrading its product structure and enhancing intelligent manufacturing capabilities to improve core competitiveness in the tire industry[60]. Environmental Management - The company has implemented environmental management practices, achieving ISO14001 and ISO45001 certifications[113]. - The company operates two 65-ton coal-fired boilers, with SO2 emissions measured at 166.12 mg/m3, well below the standard limit of 400 mg/m3[116]. - The actual total emissions of NOX were 161.84 mg/m3, also below the limit of 400 mg/m3[117]. - The company reported a total of 2.58 mg/m3 of dust emissions from the rubber mixing process, significantly lower than the standard of 12 mg/m3[119]. - Wastewater treatment facilities are in place, with COD levels at 16.211 mg/l, below the limit of 300 mg/l[120]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 27,669, an increase from 27,414 at the end of the previous month[130]. - The largest shareholder, Giti Tire (China) Investment Co., Ltd., held 151,070,000 shares, representing 44.43% of the total shares, with no changes during the reporting period[132]. - The company does not have any preferred shareholders with restored voting rights at the end of the reporting period[130]. - The controlling shareholder is Giti Tire (China) Investment Co., Ltd., which focuses on investments in the tire industry and related sectors[134]. Employee and Management Information - The total number of employees in the parent company and major subsidiaries is 3,220, with 40 in the parent company and 3,180 in subsidiaries[145]. - The company has established a performance-based salary system that aligns employee compensation with business performance and market competitiveness[146]. - Total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 3.1363 million yuan[143]. - The company maintains a diverse board with members holding various positions in other companies, enhancing governance and oversight[142]. Strategic Initiatives - The company plans to adjust its product structure to mitigate the impact of declining sales in various regions[39]. - The company aims to enhance production efficiency and control costs while adjusting sales prices and product structures to improve domestic market share[82]. - The company is focused on developing a learning-oriented team to meet future demands through comprehensive training programs[148].

Financial Performance - The net profit of GITI Tire's parent company for 2020 was CNY 79.50 million, with a legal reserve of CNY 7.95 million, resulting in a distributable profit of CNY 262.71 million by the end of 2020[6]. - A cash dividend of CNY 0.55 per 10 shares will be distributed to shareholders, totaling CNY 18.70 million, with the remaining distributable profit carried forward to future years[6]. - The company reported a significant increase in total distributable profits, which rose from CNY 218.01 million at the beginning of the year to CNY 262.71 million by year-end[6]. - The company's operating revenue for 2020 was ¥2,803,047,211.18, a decrease of 8.70% compared to ¥3,070,118,188.23 in 2019[23]. - Net profit attributable to shareholders was ¥59,636,247.45, down 31.35% from ¥86,865,756.40 in the previous year[23]. - Basic earnings per share decreased by 31.35% to ¥0.1754 from ¥0.2555 in 2019[24]. - The weighted average return on equity fell to 6.02%, a decrease of 3.20 percentage points from 9.22% in 2019[24]. - Cash flow from operating activities increased by 59.54% to ¥395,214,216.10, compared to ¥247,726,639.86 in 2019[23]. - Total assets at the end of 2020 were ¥2,951,795,566.60, a decrease of 2.80% from ¥3,036,740,635.60 in 2019[23]. - The company’s net assets attributable to shareholders increased by 3.37% to ¥1,006,618,897.65 from ¥973,842,650.20 in 2019[23]. - The company’s cash and cash equivalents increased by 44.88% to ¥334 million compared to ¥231 million at the beginning of the year[33]. - The company’s short-term borrowings decreased by 100% to ¥0 from ¥50 million in the previous year[33]. - The company achieved operating revenue of 2.803 billion RMB in 2020, a decrease of 8.70% year-on-year[41]. - Operating costs were 2.213 billion RMB, down 11.28% compared to the previous year[41]. - Net profit for the year was 125 million RMB, reflecting a decline of 30.87% year-on-year[41]. - The gross profit margin for the main business was 20.44%, an increase of 2.13 percentage points from the previous year[45]. - Domestic sales revenue was approximately 1.552 billion RMB, with a gross margin of 15.77%[45]. - International sales revenue reached about 1.224 billion RMB, with a gross margin of 26.35%[45]. - The company produced 1.212 million tires and sold 1.214 million tires, with a production decrease of 11.55% year-on-year[46]. - Research and development expenses increased by 144.71% to 19.5 million RMB[42]. - The company reported a significant reduction in short-term borrowings, down to zero from 49,531,020.00 yuan, indicating improved liquidity[56]. - The company’s tax expenses decreased by 0.21 billion yuan due to a reduction in pre-tax profits[51]. - In 2020, the company's net profit was approximately 59.64 million, with a net profit margin of 31.36%, compared to 86.87 million and 30.92% in 2019[90]. Audit and Internal Control - GITI Tire's financial statements were audited by Yongtuo Accounting Firm, which issued a qualified opinion, indicating some concerns that need to be addressed[5]. - GITI Tire's internal control audit received a negative opinion, highlighting potential weaknesses in financial governance[9]. - The audit report includes a qualified opinion due to the lack of sufficient and appropriate audit evidence regarding the unapproved related party transactions, which are significant to the company[164]. - Key audit matters include the completeness of disclosures related to related party relationships and transactions, which are significant due to the number and amount of transactions involved[165]. - The audit firm emphasizes the importance of assessing risks of material misstatement due to fraud or error in the financial statements[171]. - The audit procedures included evaluating and testing the internal controls related to identifying and disclosing related party transactions[166]. - The internal control self-assessment report indicates that there were significant deficiencies in internal control related to daily related party transactions, which were not approved by the shareholders' meeting[158]. - The internal control audit report issued by Yongtuo Accounting Firm states that the company did not maintain effective internal control over financial reporting as of December 31, 2020, due to the aforementioned deficiencies[159]. - The company has disclosed its internal control audit report and the board's special explanation regarding the audit findings[158]. Market and Industry Outlook - The tire market is expected to stabilize and maintain steady growth due to improved economic conditions and government consumption promotion policies[32]. - The overall market for tires faced a downturn due to the COVID-19 pandemic, with global tire sales revenue experiencing a substantial decline[58]. - The company anticipates a challenging business environment due to the impact of global economic conditions and domestic market dynamics on tire demand[82]. - The domestic tire manufacturing industry is experiencing intensified competition due to economic pressures and stricter environmental regulations, leading to a potential industry consolidation[83]. - The tire industry is experiencing increased concentration due to the exit of smaller players, driven by overcapacity and environmental policy impacts[60]. - The company is facing challenges from international trade protectionism, including anti-dumping measures in various countries[60]. Related Party Transactions - The total amount of related party transactions in 2020 was RMB 37.71 billion, compared to an expected total of RMB 46.56 billion, indicating a completion rate of approximately 81%[104]. - The company engaged in procurement of raw materials and other goods from related parties, with actual transactions amounting to RMB 9.22 billion against a planned maximum of RMB 13 billion[104]. - Sales of goods to related parties reached RMB 27.23 billion, which was below the expected maximum of RMB 32 billion[104]. - The company provided labor services to related parties, with actual transactions totaling RMB 0.14 billion against a maximum expected of RMB 0.20 billion[104]. - The company plans to continue related party transactions as they are deemed necessary for operations, despite previous shareholder meeting rejections[104]. - The company has strengthened the management of related party transactions to minimize potential impacts on business independence[107]. - The audit confirmed that the related party transactions for the year 2020 adhered to fair trading and market principles, with no detrimental effects on the company or shareholders[199]. - The audit verified that the procurement amount disclosed in the annual financial report matched the recorded data[191]. - The audit found no significant price differences between related party procurement and third-party prices for raw materials and fixed assets[192]. - Related party sales transactions in 2020 were conducted in accordance with the company's related party transaction system and were approved through internal management processes[196]. Corporate Governance and Management - The company has a strong R&D capability recognized as a national-level technology center, which is crucial for maintaining product quality and market competitiveness[94]. - The company has established a performance-based salary system that aligns employee compensation with business performance, ensuring internal equity and market competitiveness[146]. - The company is focusing on developing a learning-oriented team to meet future demands through comprehensive training programs[148]. - The company has established three career development paths for employees, focusing on management, professional, and operational roles[147]. - The company has a high-level management performance evaluation mechanism that ties compensation to business performance[157]. - The company plans to strengthen management of related transactions and ensure compliance with reporting and approval procedures[152]. - The company has not faced any penalties from securities regulatory agencies in the past three years[144]. - The company has not granted any stock incentives to directors and senior management during the reporting period[141]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 3.1363 million yuan[143]. - Independent directors receive quarterly allowances, while senior management's basic salary is paid monthly with performance bonuses issued after annual assessments[143]. Environmental Compliance - The company has passed the annual supervision audit certification for ISO14001 environmental management system and ISO45001 occupational health and safety management system[117]. - The company operates two 65-ton coal-fired boilers, with SO2 emissions measured at 166.12 mg/m3, significantly below the standard limit of 400 mg/m3[116]. - The actual total SO2 emissions from the boilers were 90.37 tons, compared to the approved total of 331.8 tons[116]. - The company’s wastewater treatment facilities include online monitoring for COD and ammonia nitrogen, ensuring compliance with environmental standards[121]. - The company has implemented a combination of pre-treatment and UV photocatalysis for the treatment of process waste gas, with facilities operating normally[119]. - The company’s production wastewater primarily comes from equipment cooling and domestic sewage, with no exceedance of discharge standards reported[118]. - The company has established an emergency response plan for environmental incidents, revised in July 2020 and filed with local environmental authorities[123]. - The company has maintained stable operation of pollution control facilities, with regular monitoring and compliance with national environmental regulations[121]. Shareholder Information - The largest shareholder, Giti Tire (China) Investment Co., Ltd., holds 151,070,000 shares, representing 44.43% of the total shares[132]. - Li Lujun, a significant shareholder, increased his holdings by 1,239,771 shares, bringing his total to 5,000,025 shares, which is 1.47% of the total[132]. - The company has no strategic investors or general legal entities becoming top 10 shareholders during the reporting period[134]. - The controlling shareholder is Giti Tire (China) Investment Co., Ltd., which focuses on investments in tires and related industries, including new product and technology development[134]. - The actual controller of the company includes Lin Meifeng, Lin Zhenwei, and Chen Yingyi, all of whom hold executive positions within Giti Group[135]. - There are no changes in the controlling shareholder or actual controller during the reporting period[137]. - The company has no other legal entities holding more than 10% of shares[139]. - There are no restrictions on share reduction during the reporting period[138]. - The company has a total of 5,200,000 shares held by Heilongjiang International Trust Investment Co., which accounts for 1.53% of the total shares[132]. - The company has a total of 2,000,000 shares held by China Cinda Asset Management Co., which accounts for 0.59% of the total shares[132]. Strategic Initiatives - The company plans to continue its market expansion and product development strategies, although specific numerical targets were not disclosed in the report[8]. - The company is focusing on expanding its domestic sales and adjusting product structures to mitigate the impact of declining sales[39]. - The company aims to enhance its market share by adjusting sales prices and product structure in response to increased domestic competition and export challenges[82]. - The company recognizes the need for increased research and development investment to meet rising consumer demands for safety, energy efficiency, and environmental sustainability in tire products[79]. - The company is committed to improving production efficiency and controlling costs to navigate the complex operating environment influenced by fluctuating raw material prices[85]. - The company is undergoing a transformation to enhance core competitiveness through product structure adjustment and smart manufacturing improvements[60]. - The company plans to gradually reduce related party transactions starting in 2021, shifting from purchasing through related parties to direct procurement[96]. - The company has identified a gap in product technology and brand positioning compared to global tire manufacturers, which it aims to address through innovation[78].

证券代码：600182 证券简称：S 佳通 编号：临 2020-031 佳通轮胎股份有限公司 关于参加投资者网上集体接待日活动的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 为进一步加强与投资者的互动交流，佳通轮胎股份有限公司（以下简称"公 司"）将参加由黑龙江省上市公司协会、深圳市全景网络有限公司共同举办的"黑 龙江省上市公司 2020 年度投资者网上集体接待日"活动，现将有关事项公告如 下： 本次集体接待日活动将通过深圳市全景网络有限公司提供的互联网平台举 行，投资者可以登陆"全景·路演天下"网站（http://rs.p5w.net）参与公司本次 投资者集体接待日活动，时间为 2020 年 11 月 12 日（周四）14：00 至 16：30。 届时公司财务总监王振兵先生、董事会秘书邬晓芳女士将通过网络在线问答 互动的形式，与投资者就公司治理、发展经营情况、融资情况和可持续发展等投 资者关注的问题进行交流。期间，公司高管将全程在线，实时回答投资者的提问。 欢迎广大投资者积极参与。 特此公告。 佳通轮胎股份有限 ...

Financial Performance - Revenue for the first nine months decreased by 14.14% to CNY 1,970,687,716.39 compared to the same period last year[6] - Net profit attributable to shareholders dropped by 35.70% to CNY 48,420,923.21 year-on-year[6] - Basic and diluted earnings per share fell by 35.71% to CNY 0.1424[7] - Operating profit decreased by 36.02% year-on-year to 133 million RMB, while net profit attributable to shareholders fell by 35.70% to 48 million RMB[13] - Net profit for Q3 2020 was approximately ¥51.13 million, down from ¥67.63 million in Q3 2019, indicating a decrease of about 24.4%[27] - The total comprehensive income for Q3 2020 was ¥51,125,078.89, down from ¥67,628,760.72 in Q3 2019, reflecting a decrease of 24.3%[29] - The company's total comprehensive income for the first three quarters of 2020 was ¥81,959,685.69, compared to ¥81,844,074.04 in the same period of 2019, showing a slight increase[32] Assets and Liabilities - Total assets increased by 2.81% to CNY 3,121,929,650.76 compared to the end of the previous year[6] - The company's total liabilities increased to 1.450 billion RMB from 1.354 billion RMB at the end of 2019[19] - Total assets as of September 30, 2020, amounted to 3.122 billion RMB, an increase from 3.037 billion RMB at the end of 2019[18] - Total liabilities reached CNY 1,354,328,727.29, with current liabilities at CNY 888,296,632.46 and non-current liabilities at CNY 466,032,094.83[41] - The company has a short-term loan of CNY 49,531,020.00 and accounts payable of CNY 110,719,475.22[40] - The company has a long-term loan of CNY 430,500,000.00 and total current liabilities of CNY 888,296,632.46[41] Shareholder Information - The total number of shareholders reached 28,242 by the end of the reporting period[11] - The largest shareholder, Jiatong Tire (China) Investment Co., Ltd., holds 44.43% of the shares[11] - Shareholders' equity totaled CNY 1,682,411,908.31, with equity attributable to the parent company at CNY 973,842,650.20 and minority interests at CNY 708,569,258.11[41] Cash Flow - Operating cash flow increased significantly by 88.88% to CNY 124,044,240.32 for the first nine months of the year[6] - The cash flow from operating activities for the first three quarters of 2020 was ¥1,708,389,958.88, down 9.5% from ¥1,888,604,058.78 in the same period of 2019[33] - The total cash outflow from operating activities in Q3 2020 was RMB 1,584,345,718.56, compared to RMB 1,822,932,114.82 in Q3 2019, indicating a decrease of about 13%[34] - The net cash flow from operating activities increased by 5.8 million RMB year-on-year, primarily due to a decrease in raw material costs[15] Research and Development - Research and development expenses increased by 6.4 million RMB compared to the same period last year, attributed to improved management and increased investment in R&D[14] - Research and development expenses for Q3 2020 were approximately ¥5.34 million, significantly higher than ¥2.59 million in Q3 2019, marking an increase of about 106.8%[26] Financial Management - The company reported non-operating income of CNY 959,910.77 for the first nine months[11] - The company reported a financial income of ¥24,642.88 in Q3 2020, significantly higher than ¥5,697.76 in Q3 2019, indicating improved financial management[30] - The company reported a financial expense of approximately ¥54.56 million in Q3 2020, compared to a financial income of approximately ¥9.43 million in Q3 2019, indicating a significant shift in financial performance[26] Future Outlook - The company anticipates potential losses or significant changes in cumulative net profit by the end of the next reporting period[16] - The company plans to continue investing in new product development and market expansion strategies to drive future growth[24] - Overall, the financial data reflects a solid foundation for potential market expansion and strategic initiatives[46]

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥1.12 billion, a decrease of 25.29% compared to ¥1.50 billion in the same period last year[16]. - The net profit attributable to shareholders for the first half of 2020 was approximately ¥23.35 million, down 44.59% from ¥42.14 million in the previous year[16]. - The net cash flow from operating activities decreased by 61.66%, amounting to approximately ¥67.04 million compared to ¥174.87 million in the same period last year[16]. - The basic earnings per share for the first half of 2020 was ¥0.0687, a decline of 44.55% from ¥0.1239 in the same period last year[17]. - The weighted average return on net assets decreased by 2.16 percentage points to 2.37% compared to 4.53% in the previous year[17]. - The gross profit was 213 million RMB, a decline of 22.32% year-on-year, indicating pressure on profitability[28]. - The net profit attributable to shareholders was 23 million RMB, down 44.59% year-on-year, highlighting significant challenges faced by the company[28]. - The company reported a total profit for the first half of 2020 was approximately ¥64.17 million, a decrease of 45.3% from ¥117.49 million in the first half of 2019[87]. - The company reported a net profit of CNY 275,162,558.09 for the first half of 2020, compared to CNY 218,014,979.64 in the same period of 2019, indicating a growth of 26.3%[85]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥3.07 billion, an increase of 1.03% from ¥3.04 billion at the end of the previous year[16]. - The net assets attributable to shareholders at the end of the reporting period were approximately ¥970.33 million, a slight decrease of 0.36% from ¥973.84 million at the end of the previous year[16]. - The company's cash and cash equivalents increased by 68.65% compared to the same period last year, reaching ¥242,612,157.58[31]. - Accounts receivable rose by 15.35% year-on-year, totaling ¥1,101,892,855.71, while notes receivable increased by 100% due to reclassification[31][33]. - The company's short-term borrowings decreased by 100%, reflecting a restructuring of loan arrangements[33]. - The non-current liabilities due within one year surged by 849.65% to ¥679,000,000.00, primarily due to the maturity of long-term borrowings[32][33]. - Long-term borrowings decreased by 44.19% to ¥379,500,000.00, as they were reclassified to current liabilities[32][33]. - The total liabilities rose to CNY 1,447,416,001.88, up from CNY 1,354,328,727.29, indicating an increase of 6.9%[80]. Cash Flow - The company's cash flow from operating activities decreased by 61.66% to 67 million RMB, reflecting operational challenges[29]. - Cash received from the sale of goods and services was CNY 991,260,729.13, a decline of 22.8% compared to CNY 1,283,353,386.64 in the previous year[95]. - Cash outflow for purchasing goods and services was CNY 738,562,061.60, down 14.7% from CNY 865,328,049.40 in the first half of 2019[95]. - The ending cash and cash equivalents balance was CNY 234,324,122.04, an increase from CNY 132,795,937.49 at the end of the first half of 2019[96]. Research and Development - Research and development expenses increased by 120.50% to 6.75 million RMB, indicating a focus on innovation despite the downturn[29]. - The company has adjusted its R&D management model, leading to increased investment in technology improvement projects compared to the previous year[30]. Market and Competition - The company is facing intensified competition and external pressures from trade disputes, impacting sales performance[28]. - The company plans to adjust its marketing focus and accelerate product structure adjustments to mitigate external pressures[28]. - The company’s sales network and brand advantages are leveraged to maintain market trust and expand into new markets[25]. Environmental Compliance - The company operates two 65-ton coal-fired boilers, with emissions monitored for SO2, NOX, and particulate matter, showing actual concentrations of 163.67 mg/m3 for SO2, 161.03 mg/m3 for NOX, and 5.19 mg/m3 for particulate matter, all within regulatory limits[55]. - The company reported a total actual emission of 41.73 tons for SO2 and 40.46 tons for NOX during the first half of 2020, with no exceedances of the permitted limits[55]. - The wastewater treatment facility has a COD concentration of 13.953 mg/l and ammonia nitrogen concentration of 4.545 mg/l, both below the regulatory standards[62]. - The company has implemented online monitoring systems for wastewater and flue gas emissions, ensuring compliance with environmental regulations[60]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 29,598[68]. - The total equity attributable to the parent company at the end of the reporting period was approximately ¥1.68 billion, showing a significant increase compared to the previous year's ¥1.62 billion[109]. - The total owner's equity at the end of the reporting period was 613,985.9 thousand, with a decrease of 31,992.5 thousand during the period[125]. Related Party Transactions - For the first half of 2020, the actual transaction amount with related parties totaled 1.494 billion RMB, with a projected total for the year not exceeding 4.656 billion RMB[44]. - The company has engaged in sales of goods with related parties, with an estimated total transaction amount of 3.2 billion RMB for the year, and actual transactions in the first half amounting to 1.084 billion RMB[44]. Strategic Plans - The company plans to expand its market presence and invest in new product development to drive future growth[110]. - The company has initiated a strategy to enhance its digital transformation efforts, aiming to improve operational efficiency and customer engagement[110]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[110].

Financial Performance - Operating revenue for the first quarter was CNY 503,043,762.43, a decrease of 38.58% year-on-year due to a decline in sales[13] - Net profit attributable to shareholders was CNY 9,617,874.83, down 47.62% compared to the same period last year[5] - Basic earnings per share for the quarter were CNY 0.0337, a decrease of 39.82% compared to the same period last year[7] - Operating profit for the quarter was 0.33 million, a decrease of 38.46% compared to the same period last year, mainly due to a decline in sales[14] - Net profit for Q1 2020 was ¥24,226,007.23, representing a decline of 38.8% from ¥39,588,169.17 in Q1 2019[26] - Earnings per share for Q1 2020 were ¥0.0337, compared to ¥0.0560 in Q1 2019, reflecting a decrease of 40.9%[26] Cash Flow and Liquidity - Cash flow from operating activities showed a net outflow of CNY 153,304,806.00, a significant decrease of 170.97% compared to the previous year[5] - The company's cash and cash equivalents at the end of the period were CNY 160 million, down 30.51% from the beginning of the year due to decreased sales[12] - In Q1 2020, the company reported a net cash flow from operating activities of -153,304,806.00 RMB, a significant decline compared to 216,019,356.81 RMB in Q1 2019, indicating a year-over-year decrease of approximately 171%[31] - The total cash inflow from operating activities was 340,890,597.80 RMB, down 53.6% from 734,722,981.76 RMB in the same period last year[31] - The ending balance of cash and cash equivalents was 147,991,221.44 RMB, down from 235,043,085.22 RMB in Q1 2019, representing a decrease of about 37%[33] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 3,085,695,365.39, an increase of 1.61% compared to the end of the previous year[5] - Total liabilities were 1,379.06 million as of March 31, 2020, compared to 1,354.33 million at the end of 2019[19] - Current assets totaled 2,028.23 million as of March 31, 2020, an increase from 1,951.35 million at the end of 2019[18] - Accounts receivable increased to 1,168.15 million as of March 31, 2020, from 984.24 million at the end of 2019[17] - Total current assets as of Q1 2020 amounted to CNY 1,951,346,912.28, reflecting a significant asset base[37] - The total liabilities as of Q1 2020 were CNY 1,354,328,727.29, indicating a robust financial structure[38] Operational Efficiency - The company reported an asset impairment loss of CNY 1.3 million, an increase of 1108.46% year-on-year, primarily due to equipment obsolescence[13] - Inventory decreased to 430.84 million as of March 31, 2020, from 444.51 million at the end of 2019[17] - The company experienced a decrease in sales expenses, which fell to ¥22,742,856.42 in Q1 2020 from ¥32,733,492.13 in Q1 2019, a reduction of 30.5%[25] Investment and Financing - Short-term borrowings increased by 34.94% to CNY 67 million, attributed to new trade financing[12] - The company raised 110,000,000.00 RMB through financing activities, marking a significant increase from 0 RMB in Q1 2019[32] - The net cash flow from financing activities was 96,383,287.48 RMB, a turnaround from -29,600,340.35 RMB in the previous year, indicating a positive change of over 425%[32] Research and Development - The company reported a significant increase in R&D expenses, which rose to ¥2,539,981.67 in Q1 2020 from ¥1,277,894.78 in Q1 2019, marking a growth of 98.7%[25] - The company aims to enhance its market position through increased investment in R&D and cost management strategies moving forward[25] Taxation - Income tax expense for the quarter was 0.09 million, down 37.86% from the same period last year, attributed to a decrease in pre-tax profit due to lower sales[14] - The company received tax refunds amounting to 20,001,601.81 RMB, which is a significant increase from 6,552,536.17 RMB in Q1 2019, reflecting a growth of approximately 205%[31]

Financial Performance - In 2019, the company's operating revenue was CNY 3,070,118,188.23, a decrease of 8.88% compared to CNY 3,369,363,926.95 in 2018[21] - The net profit attributable to shareholders was CNY 86,865,756.40, down 2.23% from CNY 88,842,944.87 in the previous year[21] - The net profit after deducting non-recurring gains and losses was CNY 85,173,094.45, a decrease of 4.14% compared to CNY 88,849,974.40 in 2018[21] - The net cash flow from operating activities was CNY 247,726,639.86, down 27.6% from CNY 342,184,433.85 in 2018[21] - Basic earnings per share for 2019 was CNY 0.2555, a decrease of 2.22% compared to CNY 0.2613 in 2018[22] - Diluted earnings per share for 2019 was also CNY 0.2555, reflecting the same decrease of 2.22% from 2018[22] - The weighted average return on equity decreased to 9.22% in 2019 from 10.04% in 2018, a reduction of 0.82 percentage points[22] - The company reported a net profit of 180 million yuan for 2019, a decrease of 2.11% year-on-year[39] - Total operating revenue for 2019 was 3.07 billion yuan, down 8.88% compared to the previous year[39] - The company's cash flow from operating activities decreased by 27.60%, amounting to 247.73 million yuan[41] Assets and Liabilities - As of the end of 2019, the total assets were CNY 3,036,740,635.60, an increase of 12.54% from CNY 2,698,453,641.25 at the end of 2018[21] - The net assets attributable to shareholders increased by 6.53% to CNY 973,842,650.20 from CNY 914,176,893.80 at the end of 2018[21] - The company's long-term liabilities due within one year increased by 164.43% to 493 million yuan, mainly due to long-term loans maturing[31] - The company’s accounts payable increased by 35.44% to 111 million yuan, attributed to new suppliers providing concentrated supplies at month-end[31] - The company’s total liabilities included ¥493 million in current non-current liabilities, a significant increase of 164.43% from the previous period[56] Cash and Investments - The company’s cash and cash equivalents increased by 144.97% to 231 million yuan due to changes in loan financing[31] - The remaining distributable profit for 2019 is 191,154,979.64 RMB, which will be carried forward to future years[86] - In 2019, the cash dividend payout ratio was 30.92%, compared to 30.62% in 2018 and 60.09% in 2017[88] - The company plans to distribute a cash dividend of CNY 0.79 per share, totaling CNY 26,860,000.00, based on the total share capital as of December 31, 2019[5] Industry Context - The automotive industry faced a downturn in 2018 and 2019, impacting tire sales, with production and sales showing a year-on-year decline[30] - The domestic tire industry is expected to enter a new normal of low-speed growth, influenced by economic pressures, slowing income growth, and changing consumer attitudes towards automotive consumption[59] - The tire industry is experiencing increased concentration due to the exit of smaller players, driven by overcapacity, environmental regulations, and financial difficulties[59] - In 2019, the global economic downturn and trade tensions led to significant challenges for China's tire exports, particularly due to tariffs imposed by the US and EU[57] Production and Sales - Tire production reached 1,370.3 million units, while sales were 1,393 million units, reflecting a year-over-year decrease of 9.40% in production and 7.57% in sales[44] - The company’s gross margin for tire sales improved to 18.30%, an increase of 2.14 percentage points year-on-year[43] - The average selling price of tires slightly decreased year-on-year, but the decline was less than the drop in raw material prices[73] Research and Development - The company’s research and development expenses rose by 59.25% to approximately 8 million yuan, reflecting a focus on product innovation[41] - Research and development expenses totaled ¥7.97 million, representing 0.26% of operating revenue, with 220 R&D personnel making up 6.8% of the total workforce[51] - Increasing R&D investments are being made to meet rising consumer demands for tire performance, safety, and environmental standards, with a focus on developing green tires[79] Environmental Compliance - The company has passed the ISO14001 environmental management system certification and ISO45001 occupational health and safety management system certification[113] - The actual emissions of sulfur dioxide were 201.7 mg/m3, which is below the limit of 400 mg/m3[116] - The actual concentration of COD in production wastewater was 23.701 mg/l, which is below the standard limit of 300 mg/l[119] - The actual concentration of ammonia nitrogen in wastewater was 4.147 mg/l, well below the standard limit of 30 mg/l[119] - The company has implemented measures to ensure compliance with environmental protection laws and has been recognized as a "first-class safe enterprise" in Putian City[113] Governance and Management - The company has established a cash dividend policy prioritizing cash distributions in its profit allocation[86] - The company has a strong management team with extensive experience in the tire industry and related sectors[143] - The company has independent directors with various roles in other organizations, enhancing governance and oversight[145] - The audit report confirms that the financial statements of Giti Tire Co., Ltd. fairly reflect its financial position as of December 31, 2019, in all material respects[167] Related Party Transactions - The total amount of related party transactions in 2019 was capped at RMB 5.476 billion, with actual transactions amounting to RMB 4.169 billion, representing approximately 76% of the authorized amount[102] - The audit confirmed that the procurement of raw and auxiliary materials from related parties in 2019 was approved by the board and shareholders, and did not exceed the threshold requiring shareholder approval[188] - The audit found no significant price differences between the procurement of fixed assets from related parties and the evaluation prices provided by third-party firms[191] Risks and Challenges - The company has outlined potential risks in its report, which investors should consider[8] - The company faces risks from intensified industry competition and trade barriers, particularly in light of ongoing global economic uncertainties and trade tensions[83] - The company continues to face risks from fluctuations in natural rubber prices, which significantly impact production costs and profitability[84]

Financial Performance - In 2019, the company's operating revenue was CNY 3,070,118,188.23, a decrease of 8.88% compared to CNY 3,369,363,926.95 in 2018[21] - The net profit attributable to shareholders was CNY 86,865,756.40, down 2.23% from CNY 88,842,944.87 in the previous year[21] - The net profit after deducting non-recurring gains and losses was CNY 85,173,094.45, a decrease of 4.14% compared to CNY 88,849,974.40 in 2018[21] - The net cash flow from operating activities was CNY 247,726,639.86, down 27.6% from CNY 342,184,433.85 in 2018[21] - Basic earnings per share for 2019 was CNY 0.2555, a decrease of 2.22% compared to 2018[22] - Diluted earnings per share for 2019 was also CNY 0.2555, reflecting the same decrease of 2.22%[22] - The weighted average return on equity decreased to 9.22% in 2019 from 10.04% in 2018, a reduction of 0.82 percentage points[22] - The company reported a net profit of 180 million yuan for 2019, a decrease of 2.11% year-on-year[39] - Total operating revenue for 2019 was 3.07 billion yuan, down 8.88% compared to the previous year[39] Cash Flow and Assets - The company's cash flow from operating activities decreased by 27.60%, amounting to 247.73 million yuan[41] - The company's cash and cash equivalents increased by 144.97% to 231 million yuan due to changes in loan financing[31] - As of the end of 2019, the total assets amounted to CNY 3,036,740,635.60, an increase of 12.54% from CNY 2,698,453,641.25 at the end of 2018[21] - The net assets attributable to shareholders increased by 6.53% to CNY 973,842,650.20 from CNY 914,176,893.80 at the end of 2018[21] Dividends and Share Capital - The company plans to distribute a cash dividend of CNY 0.79 per share, totaling CNY 26,860,000.00[5] - The company will not increase capital reserves to convert into share capital for the year 2019[5] - The remaining distributable profit of 191,154,979.64 RMB will be carried forward to future years[86] - In 2019, the cash dividend payout ratio was 30.92%, compared to 30.62% in 2018 and 60.09% in 2017[88] Industry Challenges - The tire industry has faced challenges since 2018 due to a downturn in the global automotive market, impacting production and sales[30] - In 2019, the global economic downturn and trade tensions led to a challenging environment for China's tire exports, with significant pressure from countries like the US and EU[57] - The tire industry in China is expected to enter a new normal of low-speed growth due to increased economic pressures, slowing income growth, and changing consumer attitudes towards automotive consumption[59] - The tire industry is experiencing a consolidation trend as smaller players exit the market due to overcapacity, environmental regulations, and financial difficulties[59] Production and Sales - Tire production reached 1,370.3 million units, while sales were 1,393 million units, reflecting a year-over-year decrease of 9.40% in production and 7.57% in sales[44] - The average selling price of tires slightly decreased year-on-year, but the decline was less than the drop in raw material prices[73] - The company’s gross margin for tire sales improved by 2.14 percentage points to 18.30% despite a decrease in sales volume[43] Research and Development - The company’s research and development expenses rose by 59.25% to approximately 8 million yuan, indicating a focus on product innovation[41] - Research and development expenses totaled ¥7.97 million, constituting 0.26% of operating revenue, with 220 R&D personnel making up 6.8% of the total workforce[51] Environmental and Safety Compliance - The company has passed the ISO14001 environmental management system certification and ISO45001 occupational health and safety management system certification[113] - The actual emissions of sulfur dioxide from the boilers were 201.7 mg/m3, which is below the limit of 400 mg/m3[116] - The actual emissions of nitrogen oxides were 177.4 mg/m3, also below the limit of 400 mg/m3[116] - The actual concentration of COD in production wastewater was 23.701 mg/l, which is below the standard limit of 300 mg/l[119] - The actual concentration of ammonia nitrogen in wastewater was 4.147 mg/l, well below the standard limit of 30 mg/l[119] Related Party Transactions - The total amount of related party transactions in 2019 was capped at RMB 5.476 billion, with actual transactions amounting to RMB 4.169 billion, representing approximately 76% of the authorized amount[102] - The company provided labor services to related parties for RMB 0.12 billion, which is 60% of the authorized limit of RMB 0.2 billion[102] - The audit confirmed that the related party transactions for purchasing raw materials and other goods adhered to market principles and did not harm the interests of the company or its shareholders[188] Governance and Management - The company’s board includes members with extensive experience in various roles across related companies, enhancing governance[143] - The company has established a compensation system that aligns with business development strategies and market competitiveness, ensuring internal equity[150] - The company has a diverse board with independent directors holding various advisory roles in other firms[145] - The audit report confirms that the financial statements of Giti Tire Co., Ltd. fairly reflect its financial position as of December 31, 2019, in accordance with accounting standards[167] Future Outlook - The company anticipates that the next decade will be a period of innovation and change, driven by technological and industrial revolutions[30] - The company aims to maintain a market-oriented approach and a sustainable development strategy to enhance competitiveness and create value for shareholders[80] - The company plans to enhance production efficiency and control costs while adjusting sales prices and product structures to improve market share and adapt to changing market conditions[82]

Financial Performance - Net profit attributable to shareholders rose by 1.15% to CNY 75,301,373.60 for the first nine months of the year[6]. - Operating revenue decreased by 9.27% to CNY 2,295,157,473.72 for the first nine months compared to the same period last year[6]. - The company reported a net profit of CNY 74,112,832.84 for the third quarter, a slight increase of 0.16% compared to the previous quarter[7]. - Net profit for the first three quarters of 2019 was CNY 489,276,397.44, an increase from CNY 441,175,023.84 in the same period of 2018, reflecting a growth of approximately 10.9%[23]. - The company reported a total profit of CNY 91,096,399.48 for Q3 2019, compared to CNY 90,425,131.28 in the previous quarter[31]. - Net profit for Q3 2019 was ¥86,636,659.93, compared to ¥106,903,501.66 in Q3 2018, reflecting a decrease of 18.93%[35]. Revenue and Costs - The main business cost was 1.863 billion RMB, down by 244 million RMB or 11.57% year-on-year[15]. - Total operating revenue for Q3 2019 was CNY 790,736,968.57, a decrease from CNY 890,021,688.21 in Q3 2018, representing a decline of approximately 11.2%[29]. - Total operating costs for Q3 2019 were CNY 698,853,174.54, compared to CNY 800,507,180.14 in Q3 2018, indicating a reduction of about 12.7%[29]. - Operating profit for the first three quarters of 2019 was ¥81,844,073.06, down from ¥101,766,905.12 in the same period of 2018, a decline of 19.6%[35]. Cash Flow - Net cash flow from operating activities dropped by 53.52% to CNY 65,671,943.96 for the first nine months[6]. - The company's cash flow from operating activities decreased by 76 million RMB compared to the same period last year, attributed to a decline in cash collection due to increased accounts receivable turnover days[16]. - Cash inflow from operating activities in the first three quarters of 2019 was ¥1,888,604,058.78, a decrease of 32.1% from ¥2,784,180,106.79 in 2018[36]. - The total cash inflow from operating activities for the first nine months of 2019 was CNY 10,578,641.42, an increase of 12.2% from CNY 9,427,271.60 in the same period of 2018[39]. - The company’s cash flow from operating activities showed a net outflow of CNY 7,289,417.12 for the first nine months of 2019, an improvement from -CNY 8,135,878.19 in the same period of 2018[39]. Assets and Liabilities - Total assets increased by 10.34% to CNY 2,977,509,037.99 compared to the end of the previous year[6]. - Total liabilities as of September 30, 2019, amounted to CNY 1,320,569,226.53, up from CNY 1,083,329,079.44 at the end of 2018, marking an increase of about 22%[23]. - The total equity attributable to shareholders was CNY 962,278,267.40 as of September 30, 2019, compared to CNY 914,176,893.80 at the end of 2018, reflecting an increase of about 5.3%[23]. - The company reported a total of CNY 606,037,445.66 in current liabilities as of September 30, 2019, an increase from CNY 503,590,230.35 at the end of 2018, indicating a rise of approximately 20.4%[23]. - Total assets reached CNY 2,977,509,037.99 as of September 30, 2019, compared to CNY 2,698,453,641.25 at the end of 2018, representing a growth of approximately 10.4%[23]. Shareholder Information - The total number of shareholders reached 30,466 at the end of the reporting period[12]. - The largest shareholder, Jiatong Tire, holds 44.43% of the shares, totaling 151,070,000 shares[12]. Research and Development - Research and development expenses increased by 2.6 million RMB year-on-year due to an increase in technology improvement projects[16]. - Research and development expenses increased to CNY 2,588,984.35 in Q3 2019, compared to CNY 0 in the previous quarter[30]. Financial Expenses and Income - The company incurred a financial expense of CNY -9,433,018.27 in Q3 2019, compared to CNY -6,695,452.91 in the previous quarter[30]. - The income tax expense for Q3 2019 was CNY 23,467,638.76, slightly higher than CNY 23,249,175.34 in the previous quarter[31]. - The company received CNY 32,000,000.00 from investment income in the first nine months of 2019, down from CNY 51,320,000.00 in the same period of 2018[39].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,504,420,505.15, a decrease of 8.25% compared to CNY 1,639,661,346.71 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 42,141,551.29, reflecting a slight increase of 1.77% from CNY 41,408,550.07 in the previous year[18]. - The net cash flow from operating activities was CNY 174,867,402.92, down by 1.11% from CNY 176,835,873.76 in the same period last year[18]. - The total assets at the end of the reporting period were CNY 2,784,857,373.06, an increase of 3.20% compared to CNY 2,698,453,641.25 at the end of the previous year[18]. - The net assets attributable to shareholders of the listed company increased to CNY 929,118,445.09, up by 1.63% from CNY 914,176,893.80 at the end of the previous year[18]. - The basic earnings per share for the first half of 2019 was CNY 0.1239, a 1.72% increase from CNY 0.1218 in the same period last year[19]. - The weighted average return on net assets was 4.53%, a decrease of 0.19 percentage points compared to 4.72% in the previous year[19]. - The company achieved operating revenue of 1.50 billion RMB in the first half of 2019, a decrease of 8.25% compared to the same period last year[31]. - The main business cost was 1.23 billion RMB, down 11.14% year-on-year, leading to a gross profit of 274 million RMB, an increase of 7.43%[31]. - The net profit attributable to shareholders was 42 million RMB, reflecting a year-on-year growth of 1.77%[31]. Cash Flow and Assets - As of the end of the reporting period, cash and cash equivalents decreased by 12.42% to ¥143.86 million, accounting for 5.17% of total assets[36]. - Accounts receivable decreased by 1.67% to ¥955.28 million, representing 34.3% of total assets[36]. - Inventory decreased by 5.66% to ¥504.98 million, making up 18.13% of total assets[36]. - Short-term borrowings significantly decreased by 97.11% to ¥6.37 million, while long-term borrowings increased by 168.24% to ¥680 million[36][37]. - The company reported a total of 31,161 common stock shareholders by the end of the reporting period[62]. - The largest shareholder, Jiatong Tire (China) Investment Co., Ltd., holds 151,070,000 shares, representing 44.4% of the total shares[62]. - The total current assets amounted to RMB 1,706,298,984.48, an increase from RMB 1,611,084,367.65 as of December 31, 2018, reflecting a growth of approximately 5.9%[71]. - The cash and cash equivalents were reported at RMB 143,857,466.12, compared to RMB 94,225,401.71 in the previous year, indicating a significant increase of approximately 52.8%[71]. - Accounts receivable reached RMB 955,280,225.23, up from RMB 909,163,539.34, representing an increase of about 5.1% year-over-year[71]. - Inventory levels were reported at RMB 504,976,380.27, which is an increase from RMB 494,964,908.65, showing a growth of approximately 2.0%[71]. Operational Strategy and Market Position - The company plans to adjust its marketing strategy to enhance exports outside the US and accelerate domestic product structure adjustments[31]. - The company anticipates facing intensified competition in the tire industry due to economic slowdown and environmental policies[40]. - The company is committed to improving tire performance and production efficiency to enhance market competitiveness[42]. - The company plans to manage related party transactions strictly to maintain operational independence and efficiency, ensuring compliance with reporting and approval procedures[50]. - The company is exploring potential mergers and acquisitions to strengthen its market presence[95]. - New product development initiatives are underway, focusing on innovative technologies to drive future growth[95]. Environmental Compliance - The company has established online monitoring systems for wastewater treatment and boiler emissions, ensuring compliance with environmental standards[54]. - The actual emissions of SO2 from the boiler were 236.051 mg/m3, which is below the standard limit of 400 mg/m3[54]. - The company has a stable operation of pollution control facilities, including a wastewater treatment plant with online monitoring for pH, COD, and ammonia nitrogen[54]. - The company has completed environmental impact assessments for all technical upgrades in accordance with national regulations[54]. - The company has a robust emergency response plan for environmental incidents, last revised in March 2017[55]. - The company has implemented a self-monitoring plan for environmental compliance, with monthly results published online[56]. Shareholder and Governance - The company continues to engage with shareholders regarding the completion of the share reform process[42]. - The company has not proposed any profit distribution or capital reserve increase for the half-year period[44]. - The company has not disclosed any new employee incentive plans or stock ownership plans during this reporting period[48]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[65]. - There were no strategic investors or general legal entities becoming top 10 shareholders due to new share placements[64]. - The company did not issue any preferred shares during the reporting period[65]. Accounting and Financial Reporting - The report period's financial data has not been audited[5]. - The company has not made any changes to its accounting firm during the audit period[47]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that financial reports accurately reflect its financial position and operating results[121]. - The company has a normal operating cycle of 12 months, which is used as a standard for classifying the liquidity of assets and liabilities[122]. - The company’s accounting records are maintained in RMB, reflecting the primary economic environment in which it operates[123]. - The company adopted new accounting standards for financial instruments, revenue recognition, and leases starting January 1, 2019, impacting financial statement presentation[192].