Operating Strategy Adjustment Leading to Temporary Income Decline in Qingdao Doublestar

Qingdao Doublestar Co., Ltd. achieved operation revenue of 2.071 Billion Yuan, decreasing 15.71% on a yearon-year basis, and realized the net profits attributable to shareholders of the listed company of 57.319 Million Yuan, increasing 6.11% on a year-on-year basis in the first half year.

According to Qingdao Doublestar, the temporary decline of sales revenue and profits is mainly due to the company’s adjustment in operating strategy. Firstly, the company has eliminated some low-profit products to guarantee the gross profit rate; secondly, the company has terminated all rental production projects and some cooperative production projects because of its environmental protection relocation, nearing completion of industrial 4.0 intelligentized plants as well as the market and capacity integration after major merger and acquisition projects implemented through merger and acquisition fund in the future.

In the first half year, Qingdao Doublestar launched a strategic guideline of “to achieve simplest pattern, perfect products and shortest distance from customers through intelligentialize”.

In the aspect of strategic innovation, the company has comprehensively established Global Market Innovation Center and Global Technology and Demand Innovation Center (including Global Graphene Tire R&D Center) and put them into operation; its whole process industry 4.0 intelligentized plant for commercial vehicle tires has reached the design capacity; the whole process industry 4.0 intelligentized plant for passenger car tires will be full operation. Thus, Qingdao Doublestar has become a company obtaining whole process industry 4.0 intelligentized plants both for commercial vehicle tires and for passenger car tires.

In the aspect of product innovation, Qingdao Doublestar has developed many high-end, high differentiation and high value-added individualized products through making users participate in product communication, design and experience. It is the first to launch CROSSLEADER passenger car safety tires featuring scratch resistance, collision resistance and puncture resistance as well as the fire-resistance KINBLI tires special for commercial tires, which is becoming the first choice for fire fighting trucks and hazardous chemicals vehicles.