Domestic tires continue to break through, technology as the base, expansion of production for the wing

(1) Racing wheel tires: technology is close to the head enterprise, OTR production capacity continues to increase

Technology continues to innovate, and the level of wheel technology is gradually approaching the head of international tire enterprises. The engineering giant tire market of 3 meters or even 4 meters high is dominated by foreign manufacturers with early start, mature technology and large reputation influence, and the head enterprises Michelin and Bridgestone have absolute advantages in the field of giant engineering tires. In 2016, Cylon Tire independently developed the world's largest 53/80R63 giant radial tire, successfully breaking the foreign technology monopoly on giant tires. At present, the technical level of the company's giant engineering radial tire products has reached the international advanced level, and has been widely recognized by domestic and foreign customers. In 2021, Cyrun liquid Gold Tire made an amazing debut at the Qingdao Innovation Festival. The company independently developed a low-carbon green tire product - Liquid Gold Tire using the new material prepared by the world's first "chemical rubber refining" technology, successfully solved the "devil's triangle" problem that has plagued the industry for many years, including tire rolling resistance, wet skid resistance and wear resistance. Make driving more safe, energy saving and comfortable. The excellent performance of liquid gold tires has been tested and certified by several authorities. We believe that liquid gold tires are expected to help the company continue to break through in the field of off-road tires.

Off-highway tire and giant tire production capacity continues to increase. Racing Tire has off-highway tire production capacity in both domestic and overseas Vietnam factories. From 2018 to 2022, the company's off-highway tire production capacity increased from 6400 tons to 124,600 tons, achieving nearly double growth. In addition, the company has planned the Qingdao off-highway tire transformation project, Dongjiakou 150,000 tons off-highway tire construction project, etc. If these projects are all landed, the company's off-highway production capacity is expected to double again on the basis of 2022, while the production capacity of 49 inches and above giant tires is expected to increase.

(2) Haian Rubber: Focus on the research and development of all-steel giant tires, improve the ability of independent innovation

Haian Rubber focuses on the field of all-steel giant tires, constantly improves the ability of independent innovation, and has achieved a number of key technological breakthroughs in the formulation of rubber material, carcass structure, production process and other aspects. Long-term technology accumulation and continuous R&D investment make Haian Rubber have certain advantages in the field of all-steel giant tires. In 2015, the company cooperated with the Beijing Rubber Industry Research and Design Institute to develop the 59/80R63 specification all-steel giant tire product, which is the largest specification model all-steel giant tire applied in the world at present. The technology and products filled the domestic gap, making China the third country in the world to produce 59/80R63 giant tires. In terms of products, the company's independent research and development and production of all steel giant tire products with excellent product quality, stability and reliability advantages, gradually obtained the wide recognition of downstream customers, broke the domestic all steel giant tire market by the international three major brands monopoly situation, to achieve import substitution, promote the whole steel giant tire localization process. At present, the company has a complete series of specifications of all steel giant tire products, covering 49 inches, 51 inches, 57 inches and 63 inches of full series specifications of products, which can meet the supporting needs of 90-400 tons of mining trucks and adapt to various types of mining environment. The quality of all steel giant tire products has reached the leading domestic and international advanced level.

In recent years, the growth of production and sales is obvious, and the future production capacity is expected to grow. The annual production capacity of Haian Rubber in 2022 increased significantly, from 0.88 million in 2021 to 10,500 in 2022, an increase of 19.32%. The capacity utilization rate has increased rapidly in the past three years, rising from 36.36% in 2020 to 99.05% in 2022, and the production and sales rate has always maintained a high level. In 2023, the company issued the "Main Board Initial Public Offering stock Prospectus (declaration draft)", intending to raise 2.952 billion yuan for all-steel giant radial tire expansion and automatic production line technical upgrading projects, research and development center construction projects, etc., and the future production capacity may continue to grow.

With the expansion of the company's scale and future development needs, the cost of management and marketing research has increased. From 2020 to 2022, with the expansion of the company's business scale, the compensation of sales personnel, travel expenses and after-sales service expenses will increase correspondingly, and the amount of sales expenses will increase correspondingly, while the proportion of operating income will decrease year by year due to the scale effect. At the same time, administrative staff compensation, office expenses, business hospitality expenses and other expenses increased, the amount of management expenses increased accordingly; The company's steel giant tire product development and production technology is difficult, and due to the use of large differences in the environment, the degree of customization of related products is also high, the company combined with customer needs to add more research and development items, the corresponding research and development investment is also growing rapidly.

(3) Triangle tire: Engineering tire operating rate to maintain a high level, continue to promote technological innovation

Triangle Tire giant project radial tire complete set of production technology and equipment development level is leading in the world. Since the production of the first engineered radial tire in November 2002, Triangle Group has aimed at the world's leading level of development. Its "giant engineering radial tire complete set of production technology and equipment development" project, won the national science and technology progress award, which is since the founding of new China, China's tire industry won the highest science and technology award, to solve the giant radial engineering tire single-layer steel tire body in bad road conditions, heavy high-speed driving on the product performance of the extremely high requirements, through adaptation innovation and system integration innovation, Greatly improve the quality of engineering radial tire products; We have innovated a series of large-scale complete sets of production equipment to achieve low-cost factory construction and large-scale industrial production. Triangle Tire can now produce full specifications of engineering giant tire series products, many world-renowned construction machinery manufacturers to provide supporting facilities, enjoy a high reputation in the international market. After a number of foreign authorities testing and the world's largest construction machinery manufacturers Caterpillar, Volvo, etc., the company's giant meridian engineering tire comprehensive technical indicators reached the international advanced level.

Triangle tire engineering tire capacity utilization rate maintained at a high level. Since 2017, the output of Triangle tire engineering tires has reached 350,000 / year, and the annual output capacity has risen to 380,000 in 2021, an increase of 8.57%. Capacity utilization was 71.23% in 2019, the lowest level in nearly six years, rose to 78.34% in 2021, and although it fell back in 2022, it always remained at a high level.

We will continue to promote new manufacturing technologies. Triangle Tire took the lead in launching the "Green Earth Declaration" to promote the development and application of new manufacturing technologies, and achieved major breakthroughs in the fields of rubber processing technology, tire molding technology, tire vulcanization technology, and clean and environmentally friendly energy utilization. In the product field, the proportion of green safety tires with low roll resistance, wet slip resistance and low noise has increased year by year, and the product performance has reached the latest index requirements of the European Union labeling regulations and the U.S. Environmental Protection Agency SMARTWAY certification, and successfully developed products with roll resistance and wet slip resistance of A level; In the field of materials, Triangle Tire is actively committed to promoting the process of "green raw materials" in itself and the tire industry, promoting the development and application of new green materials around "non-toxic and harmless", "in line with the REACH law", "reduce dependence on petrochemical products" and "expand the application proportion of renewable and recyclable materials". The use of environmentally friendly oil on the whole series of products, switching to the use of new environmentally friendly plasticizers, the proportion and type of white carbon black are gradually increasing, and in-depth application research has been carried out on new environmentally friendly materials such as plant oil, bio-based auxiliaries and rubber.

Marketing network is sound, product sales channels are smooth. Triangle Tire has established a marketing network covering both domestic and foreign, with depth and breadth. In the original tire market, the company has long supplied original tire products for more than 50 automobile manufacturers such as SinotruK, China FAW, SAIC-GM-Wuling, Dongfeng Motor and nearly 20 construction machinery manufacturers such as Shandong Lingong, Shandong Shangong and Xiamen Xiagong. At the same time, it has established strategic partnerships with large and internationally renowned companies such as Goodyear, Caterpillar and Liebherr. In the replacement tire market, the company's sales outlets cover the whole country, the domestic market share ranks in the forefront of the industry, and the dealer network covers six continents around the world. The sound marketing network provides a stable and smooth sales channel for the company's tire products, making the market share of the company's products expand year by year, and the brand influence is increasing.

(4) Guizhou Tire: Continuous reform, "dual base" layout stable expansion OTR

With a complete range of products, Guizhou Tire has become an industry leader. In 1958, the first "forward" tire was born, and Guizhou Tire experienced a breakthrough from scratch when it was started. In 1977, Guizhou Tire Factory built a production scale of 6,000 sets/year engineering tire workshop; The 18.00-25 engineering tire developed by Guizhou Tire Factory was successfully studied, which opened the prelude of large tire production in Guizhou Tire Factory. Guizhou Tire was listed in 1996. In 1997, in order to support the production capacity of 20,000 235-25 engineering tires with an annual output, Guizhou Tire and Guilin Rubber Industry Design and Research Institute of new technology development company jointly designed the engineering tire tread winding machine put into use, the project is a key technology development project of enterprises in Guizhou Province, and its development successfully filled the gap in China. The technology has reached the international advanced level. Now the company's main products are highway tire products (truck and bus tires), off-highway tire products (construction machinery tires, agricultural machinery tires, industrial vehicles (including solid) tires and special tires (such as heavy off-road tires, light rail tires, desert transportation tires, etc.) two major series of products, Production of "forward", "Hercules", "Duolitong", "strong tiger", "King Kong" and other brands five series of nearly 3,000 specifications, product specifications are complete, intelligent level is leading, is one of the domestic commercial tire specifications and varieties more complete tire manufacturing enterprises.

"Dual base" layout stable expansion OTR. In 2022, the company will accelerate the "dual base" layout at home and abroad and the "three-year action" plan to reduce costs and increase efficiency, and continue to implement product structure adjustment. In recent years, in order to meet market demand, Guizhou Tire has invested more than 2.7 billion yuan and arranged 9 OTR projects, of which 4 are product structure adjustment capacity replacement projects, and 5 are new expansion projects, involving giant tires, large engineering tires, small and medium-sized engineering tires, agricultural radial tires, small industrial tires, solid tires and other products. After the completion of the project, the OTR tire production scale of Guizhou Tire will reach 433,627 thousand units/year, or 378,500 tons/year, which will further consolidate and enhance the market position and influence of Guizhou Tire in the OTR tire field. In addition, in 2023, Guizhou Tire plans to build the second phase of the Vietnam project, which has a design capacity of 150,000 off-highway tires.

(5) Zhongce Rubber: Acquired Tianjin International to build Asia's largest off-highway tire "smart factory"

Acquired Tianjin International to build Asia's largest off-highway tire "smart factory". In March 2022, Zhongce Rubber Group decided to acquire Tianjin International United Tire & Rubber Co., Ltd. as part of its global expansion strategy. Tianjin Guolian is a Sino-foreign joint venture established in 1985. It is also one of the few professional and serialized design and manufacture of engineering tires and special tires. On June 30, 2020, Tianjin International United Tire & Rubber Co., Ltd. independently developed and manufactured the first Tianli 59/80R63 giant all-steel engineering radial tire successfully rolled off the assembly line. At this point, Tianjin Guolian has become one of the few manufacturers of 63-inch all-steel giant tires in the world. According to the company's official website, in the next three years, Zhongce Rubber (Tianjin) Co., Ltd. plans to invest 2.8 billion yuan to build Asia's largest and green off-highway tire "smart factory" with annual sales revenue of 4 billion yuan. The project is divided into three phases, and construction has begun one after another. After completion, it can achieve an annual output of 400,000 tires (150,000 tons) and 85,000 tons of high-end supporting materials. On the one hand, the implementation of the project is conducive to the company relying on the superior business environment and unique geographical location of Tianjin Port free Trade Zone, to expand its production capacity to the northern market and optimize the layout of the company's production base; On the other hand, it can play the leading role of the company, integrate the upstream and downstream resources of the industrial chain, promote the coordination between upstream and downstream enterprises, achieve the expansion and extension of the tire industry chain, and help the development of industrial clusters in Tianjin.