Tianjin, China – Tianjin Saixiang Technology (TST) posted a 49% year-on-year drop in 2018 net profit to €1 million (7 million yuan). Revenue fell by 21% to €60 million.
The company recorded €450,000 net loss less non-recurring items in 2018 in spite of 43% gross profit margin in 2018, compared with 35% in 2017, according to its annual report released in April.
Last year saw a decline in orders amid the US-China trade war, slowed global economy and China’s tightened environmental regulations, said the annual report.
Investment loss, asset write-downs and increased remuneration also contributed to the profit drop.
Revenue from overseas markets slipped by 26% to €34 million, accounting for 58% of TST’s total sales.
Nevertheless, TST expects growing demand for robotic and smart machinery as an increasing number of Chinese tire makers are expanding overseas.
The machinery maker signed a €16-million contract in 2017 to supply to Double Coin’s Thailand plant for truck and bus tires.