On April 27, Jiangsu General Science Technology Co.Ltd(601500) ( Jiangsu General Science Technology Co.Ltd(601500) ) released its annual report for 2021. Last year, the company achieved an operating revenue of 4.256 billion yuan, a year-on-year increase of 23.43%; The net profit attributable to the shareholders of the listed company was 11.61 million yuan.
In 2021, affected by external adverse factors such as the repeated global covid-19 pneumonia epidemic and the sharp rise in the prices of bulk commodities such as raw materials, the tire industry faced severe challenges and the profit space of Chinese tire enterprises was squeezed. In the face of adversity, Jiangsu General Science Technology Co.Ltd(601500) adheres to the guidance of innovation, fully grasps the opportunity of China’s international double cycle development, accelerates the development of internationalization, intelligence and greening, and accelerates the 5x strategic plan. Affected by rising costs, large capital expenditure in the early stage of project construction and strategic adjustment of some business structures, the company’s short-term operating performance is under pressure.
The annual report shows that at present, the company’s Thai base has been successfully constructed and operated, maintaining the good momentum of booming production and marketing. By building an international product matrix, enabling marketing services, developing large importers in the United States, Europe and other regions, overseas market sales have continued to grow, helping the long-term improvement of the company’s business scale. In December 2021, the company increased the capital of Thailand base again to further improve the capacity scale and enhance the warehousing and logistics capacity, so as to better meet the needs of overseas markets. In 2022, the Thai base will achieve full capacity, with monthly sales exceeding US $30 million in the first quarter, laying a solid foundation for the company’s subsequent performance growth.
According to the analysis of insiders, in the medium and long term, the ownership of the global automobile market is growing steadily, and the adjustment of short-term factors in the industry will accelerate the clearance of backward production capacity, providing good shift development opportunities for advantageous tire enterprises. Based on the successful experience of the base in Thailand, Jiangsu General Science Technology Co.Ltd(601500) invested 1.906 billion yuan to build the production base in Cambodia in December 2021. The production capacity includes 5 million semi steel radial tires and 900000 all steel radial tires. The project is under intensive construction. It is the first project invested by Jiangsu Province in RCEP member countries after RCEP (regional comprehensive economic partnership agreement) came into force. It is expected to realize the first tire offline by the end of 2022. After the project is completed, it is expected to increase the annual operating revenue (excluding tax) by 2.211 billion yuan and the annual net profit by 220 million yuan. The Cambodian base will form a complementary linkage with the Thai base to further enhance the company’s ability to deal with international trade barriers, which is of great significance to expand the global market share. In addition, the company also plans to add overseas production bases in countries along the “the Belt and Road” in the future, further promote international layout and contribute long-term strategic value.
According to the annual report, in addition to accelerating internationalization, Jiangsu General Science Technology Co.Ltd(601500) continues to strengthen R & D and innovation, and continues to lead the development of enterprises with scientific and technological innovation. During the reporting period, the company was rated as a national industrial design center, with a total of 394 patents. Invention patents ranked among the forefront of the industry, providing strong support to meet global demand. Through the upgrading and construction of the Research Institute, gather first-class innovation resources, carry out the integration of ecological chain from industry, University and research, raw material supply, equipment, channels to users, focus on category innovation and create explosive products. As the industry’s first large-scale application of Eucommia ulmoides rubber in all steel tires, the comprehensive technology of Qianlima Eucommia ulmoides rubber tire has reached the international advanced level, and its excellent performance has been widely recognized by the market and users; Mine explosion-proof tires and other new products to further seize the market; Qianlima anti puncture tire won the title of “2021 Jiangsu boutique”. Qianlima EV1 new energy green tire provides a more comfortable, wear-resistant and energy-saving experience. With the improvement of the penetration rate of new energy vehicles, it will also meet the demand. During the reporting period, Qianlima brand was once again shortlisted as China’s 500 most valuable brands and China’s top ten influential tire brands.
In addition, Jiangsu General Science Technology Co.Ltd(601500) actively responds to the national “double carbon goal”. Based on the demonstration operation of “black light workshop”, it cooperates with strategic partners to build the industry’s first “5g carbon cloud intelligent factory” by combining 5g, artificial intelligence, industrial Internet and other leading technologies with production and manufacturing, quality management, safety protection and environmental governance, so as to further help enterprises reduce costs, increase efficiency and green development. During the reporting period, the company won the titles of “Star Cloud enterprise in Jiangsu Province” and “Wuxi intelligent factory”.
Jiangsu General Science Technology Co.Ltd(601500) said that in 2022, the company will continue to implement the “5x strategy”, focus on category innovation, strengthen brand construction and end-to-end cost management through top-level design, promote the channel multiplication plan, deepen the enabling terminal, accelerate the construction of global production base and the layout of marketing network, and help the sustainable and healthy development of the enterprise.
