In 2016, accomplished fixed asset investment in the rubber industry was CNY 182.245 billion, a YOY increase of 8.18%, reversing the decline in 2015. Among them, the investment in the rubber industry decreased by 2.38% YOY to CNY 58.693 billion, declining for the third consecutive year.
The development of the tire industry is driven by the fast growth of China’s automobile industry. The tire industry is a crucial sub-sector of the rubber industry. In 2016, there were 4,000 enterprises in Chinese tire manufacturing industry and the main business income was CNY 1,034.469 billion, up by 2.61% YOY. Total export value was USD 44.35 billion, down by 8.11% and profits were CNY 64.739 billion, up by 5.89% YOY. In 2016, the production volume of automobile tires increased by 7.9% YOY to 610 million. Among that, the production volume of radial tire was 565 million, up by 9.7% YOY and accounting for 92.6%; that of bias tire was 45 million, down by 10%. In the production of radial tire, TBR tires amounted to 121 million, up by 10% YOY; PCR tires were 444 million, up by 9.6% YOY.
According to CRI, characterized by high energy costs and mass pollution, the rubber industry faces upgrading of industrial structure in coming years. On August 7, 2016, Ministry of Industry and Information Technology of the People’s Republic of China and Ministry of Finance jointly issued the Action Plan on Reduction of Volatile Organic Compounds (VOC) in Key Industries. The tire industry and the shoemaking industry were the focused industries to reduce VOCs. It was regulated that in 2018, green products with low VOCs or non-VOCs would take up over 40% of total tire production. In order to cope with industrial upgrading and international trade barriers, China has initiated the shift of the tire industry to Southeast Asia. In general, given the advantages of cost and industry chains and strong domestic demand, the tire industry in China will continue to grow in the next few years.
In this report, CRI analyzes 90 tire and rubber enterprises listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1)financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders’ equity.

(1) Financial Indexes

  • Earnings per Share
  • Book Value per Share (BPS)
  • Sales per Share (SPS)
  • Net Cash Flow per Share from Operations
  • Net Cash Flow per Share (CNY)
  • Return on Net Worth
  • Net Profit Margin on Total Assets
  • Return on Invested Capital (ROIC) (%)
  • Gross Profit Margin on Sales (%)
  • Net Profit Margin on Sales (%)
  • EBIT Margin (%)
  • EBITDA Margin (%)
  • Debt to Asset Ratio (%)
  • Total Asset Turnover (times)
  • Cash/Operating Income Received from Sales of Goods or Services
  • YOY Growth Rate of Operating Revenue (%)
  • YOY Growth Rate of Operating Profit (%)
  • YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)

(2) Summary of Income Statement

  • Gross Revenue (CNY, million)
  • Total Operating Costs (CNY, million)
  • Revenue (CNY, million)
  • Operating Profit (CNY, million)
  • Total Profit (CNY, million)
  • Net Profit (CNY, million)
  • Net Profit Attributable to Shareholders of Parent Company (CNY, million)
  • Non-recurring Items (CNY, million)
  • Net Profit Deducting Non-recurring Items (CNY, million)
  • R&D Costs (CNY, million)
  • Earnings Before Interest and Tax (EBIT) (CNY, million)
  • Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)

(3) Summary of Balance Sheet

  • Liquid Asset (CNY, million)
  • Fixed Asset (CNY, million)
  • Long-term Equity Investment
  • Total Assets (CNY, million)
  • Liquid Liability (CNY, million)
  • Non-current Liability (CNY, million)
  • Total Liability (CNY, million)
  • Capital Reserve (CNY, million)
  • Surplus Reserve (CNY, million)
  • Undistributed Profit (CNY, million)
  • Shareholders’ Equity (CNY, million)
  • Equity Attributable to Shareholders of Parent Company (CNY, million)

(4) Summary of Cash Flow Statement

  • Cash Received from Sales of Goods and Services (CNY, million)
  • Cash Flow from Operations (CNY, million)
  • Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
  • Cash Paid for Investments (CNY, million)
  • Cash Flow from Investments (CNY, million)
  • Cash Received from Investors (CNY, million)
  • Cash Received from Borrowings (CNY, million)
  • Cash Flow from Financing (CNY, million)
  • Net Increase of Cash and Cash Equivalents (CNY, million)
  • Cash and Cash Equivalents, End of Period (CNY, million)
  • Depreciation and Amortization (CNY, million)