With the release of the 2023 performance forecast of listed tire companies, the annual operation of the domestic tire industry has been released as a whole. Judging from the data, the net profit of each enterprise has shown a substantial increase, of which GM is expected to have a net profit of 20-2.700 million yuan, leading with a year-on-year increase of 1079%-1492%. The reporter found that among the 2,789 listed companies that have been disclosed, among the 30 companies whose net profit is expected to increase by more than 10 times (lower limit), only 8 companies have disclosed a net profit increase of more than 10 times (lower limit) after deducting non-profits, and GM shares are one of them.
Analyzing the reasons for the substantial increase in performance, GM disclosed in the announcement: during the reporting period, the recovery of domestic economic activities and the boost of consumer demand in the overseas tire market, the decline of raw materials and sea freight, the company continued to optimize the product structure, improve quality, promote cost reduction and efficiency increase, and the gross profit margin of products increased significantly. The company seized the development opportunity of "domestic and international dual circulation", and continued to make efforts in overseas dual bases, among which the Thailand factory maintained a boom in production and sales, the Cambodian factory accelerated its production capacity, the production and sales of tires achieved great growth, the market competitiveness continued to increase, and the profitability was greatly improved. At the same time, the previous year's base was relatively small.
According to reports, in recent years, GM has practiced the company's "5X strategic plan", accelerated internationalization, intelligence and greening, continued to promote industrial upgrading, seized the overseas expansion window period to accelerate project construction, and took the lead in becoming one of the few tire companies in China with overseas dual bases for production, establishing a competitive advantage in the industry. Judging from the company's interactive responses to investors, in 2023, its overseas factories will be full of orders and in short supply, and will continue to exceed the existing production capacity by more than 50%.
In order to fully meet the global market demand, the second phase of GM's Thailand base and Cambodia base projects have started construction in September 2023 and January 2024 respectively, while 6 million semi-steel technical transformation projects and 100,000 engineering tire technical transformation projects in China have been launched one after another, showing a strong momentum of development. In addition, the company also continues to optimize product structure, promote cost reduction, efficiency improvement and quality improvement through innovation and leadership, deepen the strategic cooperation with leading customers, continuously strengthen the foundation, and achieve high-quality development. Since 2024, the company has continued to maintain a state of booming production and sales, and the production and sales of overseas bases exceeded 1 million in January, welcoming a good start.
GM said that it will build a solid main business to be better and stronger, improve the standardized operation and governance of listed companies, and adhere to cash dividends, since the listing of the company has accumulated cash dividends of 500 million yuan, and investors to share development dividends, the future will further promote new quality productivity through scientific and technological innovation, enhance the capital market and investor feedback.