Type and function of tire

1. Senqilin: high-end tire "intelligent manufacturing" leader, overseas base has fallen three

The company is a high-end tire "intelligent manufacturing" leader, 23-25 years three overseas bases have been put into production, capacity continued to expand. The company's tire positioning is high-end, the products are mainly exported, pay attention to intelligent manufacturing and global layout, and create a full range of competitiveness. The company's tire positioning is high-end, and it cooperates with "ice and snow tire king" Nuoji in the core and most high-end tire field of Nuoji, and the company's aviation tires can supply domestic large aircraft, breaking the monopoly situation of foreign tires. The company's intelligent manufacturing level has a demonstration effect in the industry, and the first phase of the Thai project has reached the top level of intelligent manufacturing in the global tire industry, and the second phase of Thailand is expected to be further upgraded. The company carries out a global business layout and has sufficient growth momentum. There are two production bases in Qingdao and Thailand, and the second phase will be put into operation in Thailand in 2022. In 2022, the total designed annual production capacity of the company is 28 million (actual production capacity is less than 28 million), and Qingdao and Thailand bases are carrying out capacity mining and capacity climbing. The company has launched projects in Spain and Morocco, and further expanded overseas production capacity. It is expected that in 2023-2025, the company will have the actual production capacity of half steel tires of 28.5 million, 33 million and 39 million, the production capacity increases of 30%, 16% and 18%, and the production capacity of full steel tires of 1 million, 1 million and 2 million, respectively. In addition, the company has a small batch production and marketing capacity for aviation tires, the product system is further improved, and the future will have a production capacity of 80,000 aviation tires.

Operating income continued to increase, the net profit of the mother increased significantly. In terms of operating income, the company's operating income continued to grow from 2018 to 2023H1, and the operating income reached 3.537 billion yuan in 2023H1, an increase of 11.96%. In terms of maternal net profit, the company's maternal net profit maintained a rapid growth from 2018 to 2020, and declined in 2021, mainly due to the global epidemic repeatedly blocked shipping, the price of raw materials rose sharply, and the United States' "double reverse" landing of origin tires such as Thailand. In the first half of 2023, the company achieved a maternal net profit of 606 million yuan. An increase of 26.90% year-on-year.

Racing tires: Multi-category & global layout, liquid gold shapes long-term growth

2. The company has complete tire categories, global forward-looking layout, and is the leader of domestic tire manufacturing. The company has built a full-category tire production line for semi-steel tires, all-steel tires and off-highway tires, and opened a global layout in R & D, production and sales. The multi-category product layout and global operation layout have established significant competitiveness for the company in market and tariff risk diversification, profitability and steady operation ability improvement. According to the interactive Q&A and the semi-annual report of 2023, the company has a modern tire production base in Qingdao, Dongying, Shenyang and Weifang in China. The company's leadership has a long-term strategic vision and took the lead in overseas layout in 2012. At present, there are two production bases overseas in Vietnam and Cambodia. As of December 31, 2022, the company has a full steel tire production capacity of 11.95 million, half steel tire production capacity of 51.6 million, off-highway tire production capacity of 124,600 tons. The company continues to expand production capacity, full of growth, is expected in 2023 the company's full steel tire production capacity will reach 15.4 million, half steel tires will reach 68 million, road tire production capacity will reach 176,900 tons, respectively, an increase of 29%, 32% and 42%. By then, the company's leading position in domestic tire production capacity will be further consolidated. In addition, the company has R & D centers in China, North America, Vietnam and Europe; In North America, Europe, Asia and other places to serve the local and surrounding regions of the sales network and logistics center, established a global marketing network, products have been exported to more than 180 countries and regions overseas.

Performance continues to hit new highs, and equity incentive plans demonstrate confidence in long-term development. In 2022, the company achieved double growth in operating revenue and profit, and the annual operating income exceeded 20 billion yuan, hitting a record high. In the first half of 2023, the company achieved operating income of 11.631 billion yuan, a year-on-year increase of 10.84%, and realized net profit of 1.046 billion yuan, a year-on-year increase of 46.26%. On July 18, the company disclosed the 2023 employee stock ownership plan (draft), the assessment target of the employee stock ownership plan is based on the 2022 net profit of 1.332 billion yuan, and the net profit growth rate from 2023 to 2025 is not less than 30%, 60% and 90%, respectively. The net profit of the corresponding company to the mother is 17.32, 2.31 and 2.531 billion yuan respectively. The equity incentive plan is conducive to the stable operation of the company and demonstrates the confidence in long-term development.