Triangle Tyre passes Chinese IPO review
Beijing – Triangle Tyre, one of China’s largest tire makers, passed China Securities Regulatory Commission’s IPO review on 6 Jan.
The company plans to list no more than 25 percent of its total shares after issuance on the Shanghai Stock Exchange, according to its prospectus.
Capital raised from the IPO will be pumped into two projects, the relocation of its 2 million unit/year heavy truck tire facilities and the upgrade of its 8 million unit/year PCR facilities.
Planned total investments for the two projects are pegged at 2.5 billion yuan (€349 million) and 2.8 billion yuan (€390 million) respectively.
Triangle Tyre has over 9,000 employees and four manufacturing sites in Weihai, Shandong, where it is based.
The company has 6.3 million unit/year TBR capacity, 16.5 million unit/year PCR capacity and 280,000 unit/year bias tire capacity, with a product range of 4,200 tire models.
In 2014, Triangle Tyre saw a 12 percent increase in net profit to €139 million, while revenue dropped 9 percent to €1.3 billion.
Overseas sales has been contributing to over half of its total revenue since 2012, and accounted for 58 percent in 2014. Today the company sells to over 170 countries.
Risks in international trade conflicts and depreciation of foreign currencies are warned in the prospectus.
The company also cautions fluctuation in the automotive sector, with 24 percent of the company’s revenue coming from original equipment tires in 2014.