TRIANGLE TYRE(SH:601163)2022-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2022 was CNY 4,276,795,210.94, a decrease of 5.77% compared to the same period last year[25]. - The net profit attributable to shareholders of the listed company was CNY 217,119,985.53, down 37.49% year-on-year[25]. - The net profit after deducting non-recurring gains and losses was CNY 123,163,295.81, a decline of 49.28% compared to the previous year[25]. - The basic earnings per share for the first half of 2022 was CNY 0.27, a decrease of 37.21% from CNY 0.43 in the same period last year[26]. - The weighted average return on net assets was 1.93%, down 1.24 percentage points from the previous year[26]. - The company reported a total non-recurring profit and loss of 93,956,689.72 RMB for the period, with significant contributions from investment income and government subsidies[30]. - The company’s total profit for the first half of 2022 was CNY 110,700,986.66, a decrease of 54.00% compared to CNY 240,524,961.51 in the first half of 2021[145]. - The net profit for the first half of 2022 was CNY 93,806,554.62, down 54.00% from CNY 203,717,279.11 in the first half of 2021[145]. - The company's financial assets measured at amortized cost resulted in a fair value change loss of CNY -64,081.92, compared to a gain of CNY 1,608,500.88 in the previous year[145]. - The company reported a tax expense of CNY 16,894,432.04, down from CNY 36,807,682.40 in the same period last year[145]. - Total comprehensive income for the first half of 2022 was CNY 101,208,530.50, a decrease from CNY 202,398,758.70 in the same period of 2021[148]. Cash Flow and Investments - The net cash flow from operating activities increased to CNY 496,061,819.55, attributed to reduced raw material purchases and increased cash receipts from sales[27]. - Cash inflow from operating activities totaled CNY 3,786,781,060.95, compared to CNY 3,439,209,354.25 in the previous year, representing an increase of approximately 10.1%[148]. - Cash inflow from investment activities was CNY 17,315,108.06, a decrease from CNY 1,937,802,589.06 in the same period last year[153]. - Net cash flow from investment activities was negative CNY 14,731,666.03, compared to negative CNY 169,046,365.33 in the first half of 2021[153]. - Cash inflow from financing activities was CNY 500,180,604.48, down from CNY 750,352,389.79 in the previous year[153]. - The ending balance of cash and cash equivalents was CNY 2,231,993,742.74, an increase from CNY 1,021,132,740.92 at the end of the previous year[153]. Market and Production Insights - The company faced challenges due to pandemic control measures, a decline in commercial vehicle production and sales, and rising raw material costs, impacting tire production and sales[27]. - The company's tire business revenue accounts for 99.3% of total operating revenue, with over 55% of products sold in international markets[32]. - In the first half of 2022, the domestic rubber tire production decreased by 6.9% year-on-year, with a total output of 41,784.9 million units[40]. - The export quantity of domestic rubber tires in the first half of 2022 was 28,131 million units, a year-on-year decrease of 1.7%, while the export weight increased by 7.7% to 363,000 tons[40]. - The company ranked 5th among tire enterprises in China according to the "Top 100 Enterprises in the Rubber Industry" list for 2022[40]. - In the first half of 2022, commercial vehicle production and sales reached 1.683 million and 1.702 million units, respectively, representing year-on-year declines of 38.5% and 41.2%[49]. - Passenger vehicle production and sales totaled 10.434 million and 10.355 million units, showing year-on-year growth of 6.0% and 3.4%[54]. Research and Development - The company has been recognized as a national high-tech enterprise and has established several national-level research platforms, enhancing its R&D capabilities[57]. - The company holds 686 patents as of June 2022, including 82 invention patents and 43 international patents[57]. - The company developed 153 new products in the first half of 2022, focusing on tire technology innovation to meet diverse market demands[60]. - Research and development expenses increased to approximately ¥61.61 million in the first half of 2022, compared to ¥60.17 million in the same period of 2021, reflecting a growth of 2.37%[139]. Environmental and Sustainability Efforts - The company is committed to sustainable development and high-quality growth, maintaining its leading position in the tire industry[40]. - The companies under the group, including Huasheng, Huamao, and Huayang, achieved compliance with national and local emission standards for pollutants during the reporting period[89]. - The companies implemented a new zeolite adsorption and catalytic combustion waste gas treatment system in 2022, achieving over 90% purification efficiency for VOCs[91]. - The company has initiated 16 energy-saving technical transformation projects, expected to save 6.1 million kWh of electricity and 1,200 tons of steam annually, leading to a reduction of 4,990 tons of CO2 emissions[100]. - The company is committed to developing low-carbon, green, and efficient production standards in the tire industry, aligning with national policies on carbon neutrality[100]. Shareholder and Governance Information - The largest shareholder, Triangle Group Co., Ltd., held 454,739,750 shares, representing 56.84% of the total shares[119]. - The company has not reported any changes in the controlling shareholder or actual controller during the reporting period[124]. - The company has pledged to avoid any conflicts of interest with its subsidiaries and ensure fair market practices in related transactions[102]. - The company has committed to maintaining strict compliance with related party transaction approval procedures to protect shareholder interests[108]. Risks and Challenges - The company faces international trade risks due to anti-dumping investigations and tariffs imposed by countries such as the US, Brazil, and the EU, affecting over 50% of its sales from exports to more than 180 countries[77]. - The company is exposed to global market competition with numerous domestic tire manufacturers and foreign brands holding significant advantages in the mid-to-high-end market, prompting a focus on technological innovation and quality improvement[77]. - Fluctuations in the USD/RMB exchange rate impact the company's overseas sales and profitability, with strategies in place to mitigate foreign exchange exposure through various hedging methods[77]. - The ongoing impact of the COVID-19 pandemic has led to challenges in logistics and shipping, with the company enhancing communication with customers and shipping companies to ensure resource availability and operational efficiency[77].