2-digit growth in core indicators, Prinx Chengshan has strong development

On March 31, Prinx Chengshan released its 2020 annual report, with double-digit growth in major indicators. The company's performance has been developing vigorously under the epidemic situation.

Among them, 15.1 million tires were sold, a year-on-year increase of 22.4%; the operating revenue was 6.283 billion yuan, an increase of 12.4%; the net profit was 605 million yuan, an increase of 26.1%.

"In the face of the sudden impact, Prinx Chengshan insists on taking production and operation as the center, going against the trend and changing from time to time. In the face of crisis and challenge, Prinx Chengshan continues to maintain a good development trend and achieves 'qualitative' improvement and 'quantitative' growth." Chairman of the board of directors, Che Hongzhi said.

Continue to expand production capacity - promote intelligent manufacturing and improve delivery level

China's production base has a capacity of 6.35 million TBR and 1.05 million under construction, 8.4 million PCR and 2.8 million under construction.

As for Thailand production base, by the fourth quarter of 2020, it has achieved 800,000 new production capacity of TBR and 1.2 million under construction; PCR has achieved 4 million new production capacity and 4 million under construction. The expansion project is expected to reach capacity in the fourth quarter of this year.

The commissioning of the second base has improved the global production and delivery capacity of Prinx Chengshan and enhanced its ability to cope with changes in the international situation. It is an important milestone in the development history of Prinx Chengshan.

Multi channel development: multi point development of domestic and foreign channels and supporting markets

The domestic replacement market has been developing steadily, and Chengshan series brands are in the forefront of the replacement market share. The growth trend is prominent in the second half of the year. The annual operating revenue is 1.947 billion yuan, accounting for 31.0% of the total revenue;

The operating revenue of international distributors reached 2.360 billion yuan, accounting for 37.6% of the total revenue;

The OEM market grew at a high speed, with 3.13 million pieces of sales, an increase of 53%. The collaborative innovation was recognized by the main engine factory. The operating revenue was 1.748 billion yuan, accounting for 27.8% of the total revenue.

The sales revenue of all steel radial tire, semi steel radial tire and bias tire accounted for 75.2%, 22.0% and 2.8% of the total revenue respectively.

Innovation driven technology enabled products and services

We strengthened R & D investment, and the annual R & D expenditure reached 158 million yuan, an increase of 26%. Fruitful research and development results, 21 utility model patents, 20 appearance patents, 198 intellectual property rights were granted.

We continued to optimize the product structure, increased the development of new products, and developed 357 new products throughout the year, accounting for 35.2% of the total sales.

Innovate sales mode and focus on service transformation. "Zhianda" intelligent tire leasing business relies on RFID, TPMS and other technologies to provide customers with "tire life cycle" solutions and reduce the comprehensive use cost of customers' tires. The sales model is further mature in the exploration, bringing new sales growth points.

"2021 is full of uncertainty, but we believe that opportunities for sustainable development of the global economy will always exist. The group will focus on the main tire industry, optimize the layout, continue to promote the construction of Thailand tire production base phase II project and Shandong factory expansion project, and pay attention to the coordinated development of speed and efficiency. " Che Hongzhi said.