TRIANGLE TYRE(SH:601163)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥4,538,795,774.83, representing a 17.56% increase compared to ¥3,860,819,727.81 in the same period last year[24]. - The net profit attributable to shareholders of the listed company decreased by 23.90% to ¥347,326,173.50 from ¥456,416,570.19 in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 34.60% to ¥242,808,022.84 compared to ¥371,286,867.97 in the same period last year[24]. - The net cash flow from operating activities was negative at -¥68,659,533.95, a decline of 115.06% from ¥456,031,288.22 in the previous year[24]. - Basic earnings per share decreased by 24.56% to ¥0.43 from ¥0.57 in the same period last year[25]. - The weighted average return on net assets decreased by 1.27 percentage points to 3.17% from 4.44% in the previous year[25]. - Operating profit decreased by 24% to 412 million RMB, primarily due to rising raw material costs and delayed price adjustments[62]. - The cost of goods sold increased by 28.79% to 3.69 billion RMB, driven by higher raw material prices[64]. - The company reported a total comprehensive income of RMB 354.52 million for the current period, with a profit distribution of RMB -280 million[175]. Production and Sales - The company's main business, tire manufacturing, accounted for 99.4% of total revenue, with over 51% of products sold in international markets[31]. - In Q1 2021, the domestic rubber tire production reached 21,471.6 million units, a year-on-year increase of 46.8%[41]. - In the first half of 2021, the domestic rubber tire production totaled 44,905.5 million units, reflecting a year-on-year growth of 32.1%[41]. - The company produced 12.98 million tires in the first half of 2021, a year-on-year increase of 25%[59]. - Sales reached 12 million tires, representing an 18% year-on-year growth[59]. - The company’s passenger car tire segment introduced 66 new products during the reporting period, including high-performance and all-season tires, enhancing safety and comfort for consumers[58]. Market and Industry Trends - The decline in net profit after deducting non-recurring gains and losses was primarily due to rising raw material prices, which could not be offset by product price increases, and increased shipping costs affecting tire exports[26]. - The ongoing global pandemic and commodity price pressures present significant challenges for the tire industry in the short term, but long-term opportunities exist due to industry restructuring and increased concentration[44]. - The price of major tire raw materials has been increasing rapidly since Q4 2020, putting pressure on tire companies' performance, with retail price transmission lagging behind raw material cost increases[44]. - The domestic automobile production and sales in China reached 12.57 million and 12.89 million units respectively in H1 2021, representing year-on-year growth of 24.2% and 25.6%[44]. - The tire replacement rate in China has risen to 1.3-1.5 in recent years, indicating that tire demand is growing faster than the increase in vehicle ownership[44]. Research and Development - The company holds 539 patents as of June 2021, including 79 invention patents and 42 international patents, showcasing its strong R&D capabilities[52]. - The company has established a research and development center in Akron, USA, and has made significant advancements in aviation tire technology, with a product currently in the research and certification phase[52]. - The company is focused on innovation in tire technology to meet the growing demand for green, low-carbon, and intelligent products in the global market[58]. - Research and development expenses for the first half of 2021 were ¥221,207,809.47, slightly down from ¥223,778,784.42 in the same period of 2020[143]. Environmental and Compliance - The company has established an ISO14001 environmental management system and has been compliant with environmental regulations since 1999[87]. - The company’s subsidiaries are classified as key pollutant discharge units, with all major pollutants meeting discharge standards during the reporting period[87]. - The actual emission concentrations for particulate matter and non-methane total hydrocarbons were within regulatory limits, with no exceedances reported[88]. - The company has implemented effective pollution control measures, ensuring that all pollutants are within the regulatory limits, with no exceedances reported for major pollutants such as particulate matter and non-methane total hydrocarbons[95]. - The company has achieved a potential annual electricity saving of 2.6 million kWh through the upgrade of 21 circulating water pumps, resulting in a reduction of 1,950 tons of CO2 emissions per year[100]. Strategic Initiatives - The company plans to adjust its procurement strategies to mitigate the impact of rising raw material costs and shipping fees on its operations[26]. - The company is actively promoting its sub-brands in both domestic and international markets to meet diverse market demands[52]. - The company plans to adjust marketing strategies and expand both domestic and international sales in the second half of 2021[62]. - The company is implementing strategies to enhance competitiveness in global markets by developing emerging markets and optimizing product quality through technological innovation[76]. Financial Position - The total assets at the end of the reporting period were ¥16,544,630,616.51, a decrease of 0.65% from ¥16,653,519,724.13 at the end of the previous year[24]. - The total liabilities as of June 30, 2021, were ¥5,653,275,451.35, down from ¥5,792,509,049.01, a decrease of 2.41%[136]. - The total equity attributable to shareholders increased to ¥10,890,407,185.79 from ¥10,860,093,303.69, reflecting a growth of 0.28%[136]. - The company reported a total cash outflow from operating activities of CNY 4,245,551,791.15 in the first half of 2021, compared to CNY 2,644,811,443.80 in the same period of 2020, indicating an increase of approximately 60.5%[161]. Related Party Transactions - The company reported a total of 895 million RMB in expected related party transactions for 2021, with actual transactions amounting to 207.29 million RMB in the first half of the year[111]. - The company purchased materials and goods from related parties, with the largest transaction being 500 million RMB from Triangle (Weihai) Huajin Electromechanical Equipment Co., Ltd., and actual spending of 174.12 million RMB[111]. - Triangle Tire aims to minimize related party transactions with other enterprises controlled by its major shareholders[111]. - The company has committed to strict adherence to related party transaction approval procedures to ensure fairness and transparency[111]. Governance and Management - The company experienced changes in its board and management, with two resignations and one new election[85]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties during the reporting period[110]. - The company reported no significant changes in the audit opinion from the previous annual report, indicating consistent financial practices[110].