Cheng Shin’s revenue in the first 9 months fell

Recently, Cheng Shin Rubber held a third-quarter briefing meeting. As of September 30, 2023, the company can produce 23,000 all-steel radial tyres and 179,000 semi-steel radial tyres per day. From January to September, the tyre manufacturer’s revenue and net profit were approximately NT$73.5 billion (about £1.85 billion; €2.16 billion) and NT$5.6 billion (about £140 million; €160 million).

It is worth noting that Cheng Shin Rubber’s revenue in the first three quarters decreased by 2.9 per cent compared with the same period last year. The reason given by the company is that the decline in sales volume caused an impact of -7.08 per cent; the impact of price and exchange rate was 2.91 per cent. In other words, prices and exchange rates have had a positive effect on Cheng Shin Rubber’s sales, but the negative impact caused by the decline in sales volume is more serious.

For comparison, Chinese tyre manufacturer Sailun’s revenue in the first nine months was 19.01 billion yuan (about £2.1 billion; €2.45 billion). Comparing the two figures, Sailun’s revenue in the first three quarters has exceeded that of Cheng Shin Rubber.

In the first three quarters, the sales data of Cheng Shin Rubber’s TBR and PCR products did not change much compared with the previous year. Sales of bicycle tyres and tubes have declined sharply. Sales of bicycle tyres in the first nine months fell by 10.9 million units compared with the same period last year. Sales of tubes fell by 43.6 million units.

The sales revenue proportion of each regional market from January to September was similar to the previous year. However, the revenue share of the mainland China market increased from 45.9 per cent in 2022 to 49.87 per cent. The revenue share of the Middle East-Africa market increased slightly, while the data for the Asia-Pacific, Americas, Europe and Taiwan markets showed a slight decline.