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Prinx Chengshan Announces 2022 Interim Results

Date:2022-08-31    views:1199

Results Highlights:
•Revenue for the Period was approximately RMB 4,091.2 million, representing an increase of approximately 9.0%
•Sales volume of tyres for the period reached approximately 9.4 million units, representing an increase of approximately 3.3%
•Gross profit was approximately RMB 536.9 million, representing a year-on-year decrease of approximately 13.2%
•Profit attributable to shareholders of the Company was approximately RMB 158.6 million, representing a year-on-year decrease of approximately 35.4%

(30 August 2022, Hong Kong) Prinx Chengshan Holdings Limited (hereinafter referred to as the “Company” or “Prinx Chengshan”, together with its subsidiaries, the “Group”; stock code: 1809.HK) announces its interim results for the six months ended 30 June 2022 (the “Reporting Period”).

In the first half of 2022, Prinx Chengshan recorded revenue of RMB 4,091.2 million, representing a year-on-year increase of approximately 9.0%. Gross profit of the Group decreased by approximately 13.2% to approximately RMB 536.9 million as the increase in cost was higher than the increase in selling price due to the increase in raw material prices and sea freight charges. Profit attributable to shareholders of the Company amounted to approximately RMB 158.6 million, representing a year-on-year decrease of approximately 35.4%.

The second phase of the Tyre Production Base in Thailand has successively reached production capacity in the first quarter of 2022. At present, the annual production capacity of all steel tyres and semi-steel tyres has reached 200 million and 800 million, respectively.During the Period, the sales volume of tyres of the Company increased by approximately 3.3% to approximately 9.4 million units.Affected by the multi-point outbreak of the pandemic in China in the first half of 2022, the replacement market demand for commercial vehicle tyres was sluggish, and the Company’s sales volume in the commercial vehicle replacement market decreased. However, sales in the metric tyres, high-performance light truck tyres and high-performance non-inner-tyres segments increased, and the sales structure adjustment has achieved initial success.

Increase investment in research and development, drive development with technological innovation, and enhance manufacturing capabilities with green, intelligent and sustainable development

Prinx Chengshan has built a basic research system with independent intellectual property rights, established a design and simulation integrated TDSS system, realised design automation and performance prediction intelligence, and provided effective technical support for product development.Prinx Chengshan achieved fruitful results in the research of “impact of tyre design factors on performance”, and carried out in-depth research on tyre noise technology, established objective tyre noise evaluation methods, and further deepened the research on tyre comfort.As of the end of the Reporting Period, Prinx Chengshan has obtained a total of 310 intellectual property rights, including 15 patents, 124 utility models, 133 design patents and 38 software copyrights.

Implement the brand differentiation development strategy and deploy new energy vehicle tyres

Prinx Chengshan takes “green, intelligent, international and branded” as its main development axis.Based on our deep insight into consumers, we have formulated a brand strategy for the next three years: combining internationalisation with localization, multi-brand and differentiated development. Our four major brands, namely Chengshan, Prinx, Austone and Fortune, have completed system renovation, and channel innovation has injected new vitality, further developing the passenger vehicle tyre market, and actively tapping into the new energy vehicle tyre market.

Prinx, as a new energy vehicle tyre brand, is positioned as “born in the electric era”. From brand to market and channel, it continues to explore, innovate and empower the electric era.In June 2022, two new flagship electric vehicle products, namely “Discovery” XNEX SPORT EV and “Innovator” XLAB COMFORT EV, were launched in the domestic replacement market, winning the resonance of consumers with perceptible technological innovation.

Currently, Prinx is the first domestic tyre brand to receive three international awards, namely MUSE DESIGN AWARDS in the United States, DNA in Paris and A’DESIGN AWARD in Italy.Through reform and breakthrough, Prinx Tyre is able to influence the world with both physical appearance and strength.

Looking forward to the second half of 2022, the sea freight rate is expected to return to normal, and the price of raw materials is expected to stabilise. At the same time, benefiting from the favourable domestic policies, the automobile and infrastructure industries are expected to usher in a recovery, which will help increase the demand for tyres and improve profitability.