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Prinx Chengshan Announces 2019 Annual Results

Date:2020-03-22    views:592

Results Highlight

• Revenue amounted to approximately RMB5,589.0 million, representing an increase of 7.4% over the same period last year

• Gross profit amounted to approximately RMB1,075.3 million, representing an increase of approximately 7.2% over the same period last year

• Profit attributable to the shareholders was RMB479.7 million, representing an increase of approximately 0.2% over the same period last year

• Recommended the payment of a final dividend of HK$0.2 per ordinary share


(20th March 2020——Hong Kong)The board (the “Board”) of directors (the “Directors”) of Prinx Chengshan (Cayman) Holding Limited (the “Company” or “Prinx Chengshan”; Stock code: 1809) is pleased to announce the annual results of the year ended December 31, 2019 (the “Year” or “Reporting Period”).


During the Reporting Period, the Group’s overall operations were stable and its performance was in line with expectations. The annual operating revenue was approximately RMB5,589 million, representing an increase of 7.4% over the same period last year. The gross profit was approximately RMB1,075.3 million, representing a year-on-year growth of approximately 7.2% and the gross profit margin of the Group remains stable at approximately 19.2%.


In the Year, the production expansion project was in smooth progress. The first phase of the capacity expansion project of Rongcheng all steel radial tires was put into full operation, offering a new capacity of 1.65 million sets, and increasing the annual production capacity from approximately 4.7 million sets to 6.35 million sets. The first phase of the capacity expansion project of Rongcheng semi-steel radial tires was also put into service, offering a new capacity of approximately 1.9 million sets and increasing the annual production capacity from approximately 6.5 million sets to 8.4 million sets; representing 70.6%, 20.1% and 3.9% of the Group’s total income respectively.


During the Reporting Period, the Group enhanced its business cooperation with automobile manufacturers, improved its market competitiveness and channel customer stickiness, cooperated with more than 30 vehicle factories in 42 supporting projects, and established a mature direct sales channel with many automobile manufacturers. Besides, the Group has become the supplier of vehicle manufacturers such as BAIC Daimler, Dongfeng Suizhuan and Great Wall Motor. By far, the top 10 commercial vehicle manufacturers in terms of domestic sales have all entered the supporting system of the Group. The Group has become the supporting manufacturer of the world’s first “5G + intelligent driving” project of SAIC Iveco Hongyan Automobile, marking another breakthrough in the research and application of Prinx Chengshan in the field of intelligent tires. Through the cooperation with a number of mature automotive enterprises, the Group was able to improve its R&D and product performance to meet the needs of more customers. The Company ranked the 49th on the List of China Top 100 Auto Parts Companies in 2019.


The Group’s overseas production base in Thailand is in line with the overall construction schedule. The first phase of the project is expected to be put into operation in the second quarter of 2020. After it comes into operation, the annual production capacity of all steel radial tires and semi-steel radial tires can be increased by 800,000 sets and 4 million sets respectively. As of the end of the Reporting Period, 35 models of all steel products and 175 models of semi-steel products for Tire Production Base in Thailand had been developed and stored in Rongcheng factory, providing strong product support and guarantee for the Group’s further expansion of overseas business and its performance improvement in 2020.


In the foreseeable future, under the uncertainty due to the economic impact of the epidemic outbreak of novel coronavirus pneumonia (the “NCP Epidemic”), the Group will pay more attention to the cash flow, maintain effective capital investment, firmly implement the international development strategy, and work closely with partners in the upstream and downstream of the industrial chain to tide over the difficulties and maintain a healthy industrial chain ecology. Meanwhile, the Group will continue to improve the marketing, R&D, manufacturing, procurement, quality and control systems, establish systematic and regular review, revision and improvement mechanisms, and form a self-improving management system. The Group will also optimize the production process and manufacturing cost by increasing R&D investment and digitization of manufacturing process to create core advantages of high-quality development.