Xingda sold less truck tyre cord in first half

ERJ staff report (DS)

Hong Kong -- Xingda International Holdings Limited, a Chinese producer of steelcord for tyres and other products, saw lower profits on increased sales for the six months to 30 June 2011.

During the first half of 2011, Xingda's revenue increased by 10.5 percent to RMB2,805 million (euro 304 million) while gross profit decreased to RMB758 million. Gross profit margin dipped to 27.0 percent due to softened domestic demand and change in sales mix. Adjusted profit attributable to owners of the Company decreased 14.2 percent to RMB314 million.

Total group volumes reached 226,600 tonnes, representing a year-on-year increase of 10.5 percent. The sales volume of radial tyre cords, the Group's key product, rose by 10.3 percent to 191,200 tonnes, while the sales volume of bead wires was up by 5.7 percent to 33,400 tonnes. Sales from sawing wires, which only began mass production by the Group in December 2010, accounted for around 0.9 percent of Xingda's total sales volume.

Sales volume of radial tyre cords for trucks, decreased by 4.5 percent to 128,600 tonnes. Moreover, the high and stable quality of its radial tyre cords for passenger cars, which are also competitively priced, was well received by the overseas market, leading to a rise in sales volume of 61.8 percent to 62,600 tonnes. Radial tyre cords for trucks and passenger cars accounted for 67.3 percent and 32.7 percent of the Group's total sales volume of radial tyre cords respectively.

Construction of the Group's No. 9 factory has continued according to schedule. In addition, the Group intends to build a new factory in China's Shandong Province with a planned production capacity of 100,000 tonnes for radial tyre cord, much of which will be used to manufacture truck tyre cord. The construction of Shandong factory is to be in parallel with the expansion of No. 9 factory. As a result, the total production capacity for radial tyre cords of the Group is expected to exceed 600,000 tonnes by 2012, reaching 700,000 tonnes by 2013.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

results statement from Xingda