Overseas enterprises have a significant position, and domestic leading enterprises have developed rapidly

Off-highway tires have strong profitability and high gross profit margin, and are blue ocean products in tires. Due to the differences in the main product categories, the main products of domestic tire industry leaders such as wheel tires, Linglong tires, Senkirin, Triangle tires, etc., contain half steel tires, full steel tires and other tire products. At present, among listed and planned listed tire companies, only Haian Rubber is a company that specializes in giant tire products. From the perspective of the gross profit margin and net profit margin of several companies in 2020-2022, the average gross profit margin and average net profit margin of Haian Rubber in 2020-2022 are higher than other enterprises, the average gross profit margin of Haian rubber is 34.83%, and the average gross profit margin of other tire companies is between 5.41% and 25.88%. The average net interest rate of Haian Rubber is 10.33%, and the average net interest rate of other tire companies is between -3.73% and 9.87%. We believe that part of the reason behind this is the difference in product structure, and the core is the strong profitability of off-highway tires. In terms of the change trend of gross margin and net interest rate of Haian Rubber in recent years, the gross margin of Haian Rubber in 2020-2022 fluctuated at about 35%, and the net interest rate increased from 4.01% and 6.44% to 20.52%, which has a significant improvement. We believe that mainly because of the gradual withdrawal of the three major international brands of all-steel giant tire products from the Russian market in 2022, large Russian mining companies have turned to China to purchase all-steel giant tire products, and the sales revenue of Haian Rubber all-steel giant tire products in 2022 has increased significantly.