ERJ staff report (DS)
Hong Kong - Chinese steelcord maker Xingda International Holdings said its revenues fell in the six months to 30 June 2012, but tonnages increased.
Total group total sales volume reached 242,700 tonnes in the first half, a year-on-year increase of 7.1 percent. The Group's revenue decreased by 1.5 percent to RMB2,763.7 million (euro 348 million) while gross profit and gross profit margin declined 20.6 percent to RMB568.0 milliony.
Sales volume of radial tyre cords for trucks, the major product to the Group, rose by 4.9 percent to 134,900 tonnes; while the sales volume of radial tyre cord for passenger cars, the second major product to the Group surged 14.2 percent to 71,500 tonnes which was contributed by the growing export sales and the expanding replacement market in China.
During the period, radial tyre cords for trucks and passenger cars accounted for 65.4 percent and 34.6 percent of the Group's total sales volume of radial tyre cords respectively (first half of 2011: 67.3 percent and 32.7 percent).
The company has slowed its expansion plans. The construction of the Shandong plant was proceeding at a slower pace and was expected to commence operation in 2013. As at 30 June 2012, the Group had an annual capacity for radial tyre cord, sawing wire and bead wire of 500,000 tonnes, 12,000 tonnes and 100,000 tonnes, respectively. The overall utilisation rate and the utilisation rate of radial tyre cords reached 80.6 percent and 84.0 percent respectively in the first half of 2012 (first half of 2011: 74.0 percent and 76.4 percent, respectively).
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Press release from Xingda