Huayi’s tyre turnover totalled 4.968 billion yuan

On 30 August 2022, Shanghai Huayi, the parent company of Double Coin Tire Group first half results showing the company generated revenue of 4.968 billion yuan (about £614 million, 719 million euros), and operating costs were 4.559 billion yuan (about £564 million, 660 million euros). Within that, the revenue of all-steel radial tyres and semi-steel radial tyres was 4.6 billion yuan (about £569 million, 666 million euros) and 368 million yuan (roughly £45.51 million, 53.25 million euros).

In volume terms, from January to June, the company produced 6,340,437 tyres and sold 6,657,567 tyres, and the average selling price of each tyre was about 717.61 yuan.

Currently, Shanghai Huayi’s tyre manufacturing business is divided into two parts. Double Coin Tire Group mainly manages four production bases in China, located in Jiangsu, Chongqing, Anhui and Xinjiang. In the first half of the year, the net profit of Double Coin Tire Group was 70.43 million yuan (about 8.71 million pounds; 10.19 million euros).

Shanghai Huayi’s report notes two investments related to Double Coin. The expansion project of Double Coin (Jiangsu) involved an investment of 1.526 billion yuan (about £189 million; 221 million euros) to produce a total of 1.8 million all-steel radial tyres per year. Currently, the company reports that it has achieved 67 per cent of production capacity. Double Coin (Anhui)’s project has an annual output of 15 million semi-steel radial tyres, with a total investment of 3.183 billion yuan (about £394 million; 461 million euros) and has achieved 40 per cent of the targeted production capacity.

Huayi Group (Thailand), the main body of the tyre manufacturing base in Thailand, is controlled by Huayi Group (Hong Kong). Shanghai Huayi holds a 51 per cent stake in Huayi Group (Hong Kong). And Huayi Group (Hong Kong) has an 85 per cent stake in Huayi Group (Thailand). Therefore, Shanghai Huayi indirectly holds a 43.35 per cent stake in Huayi Group (Thailand). From January to June, Huayi Group (Hong Kong)’s net profit was 41.79 million yuan (£5.17 million; 6.05 million euros).