On the evening of April 25, General Science (SH.601500) released its first quarter report for 2024. The company achieved operating income of 1.443 billion yuan in the first quarter of 2024, a year-on-year increase of 37.58%; the net profit attributable to shareholders of listed companies was 153 million yuan, a year-on-year increase of 1270.57%. Development has entered the "fast lane" and achieved a "good start".
On the same day, GS released its 2023 annual report. The company achieved operating income of 5.064 billion yuan in 2023, a year-on-year increase of 22.91%; the net profit attributable to shareholders of listed companies was 216 million yuan, a year-on-year increase of 1175.49%. According to the company's 2023 dividend plan, it is planned to distribute cash dividends of RMB 89.01 million, accounting for 41.14% of the total.
From the perspective of the external environment, in 2023, under the complex international economic situation such as slowing global economic growth, intensifying geopolitical turmoil, and high overseas inflation, China has intensified macroeconomic control, the national economy has gradually recovered, and the overall recovery is improving. Domestic tire brands are taking advantage of the trend to rise, relying on product cost-effectiveness and competitiveness advantages, production, sales and export volumes have achieved steady growth in 2023. According to statistics from the General Administration of Customs of China, in 2023, a total of 616.4 million new pneumatic rubber tires were be exported, a year-on-year increase of 11.8%; the export value was 150.113 billion yuan, a year-on-year increase of 19.5%.
From the perspective of the enterprise itself, GS adheres to innovation promotion and top-level design, continues to promote international, intelligent and green industrial upgrading, and becomes the first Chinese tire company in the industry to have dual overseas bases that have successfully put into production. It has fully implemented the improvement of product strength, channel strength and brand strength, achieved remarkable results in strategic transformation, and achieved leapfrog growth in performance.
01 Global layout boosts international competitiveness
The annual report shows that GS's Thailand factory has maintained a state of booming production and sales since 2023. Relying on its competitive advantages of high-performance, high-quality, green and safe products and close-to-market services, orders continue to be in short supply; At the same time, the company's second overseas base, the Cambodian factory, officially opened on May 22, 2023. Production capacity continues to accelerate and is expected to reach full production this year. In 2024, GS is making every effort to promote the construction of "four major projects", namely the Thailand Phase II project, the Cambodia Phase II project, the domestic technical transformation project of 6 million semi-steel tires and 100,000 engineering tires. By seizing the construction deadline and grasping the progress, strive to put into production as soon as possible and increase efficiency.
In addition, the company has increased its overseas brand building, focusing on internationally renowned tire exhibitions in the United States, Dubai, and Panama, deepening cooperation with overseas leading customers, continuously strengthening channel expansion, and expanding market share. Thanks to the creation of a new pattern of "domestic and international dual circulation", in the past March, the foreign trade sales of semi-steel tires at GS's three major production bases in China, Thailand and Cambodia exceeded 1 million units in a single month, setting a new high.
02 Intelligent manufacturing cultivates new productivity
The strong advantages of intelligent manufacturing are the key to GS's rapid expansion of production overseas. In recent years, the company has built overseas dual bases in Thailand and Cambodia, drawing on the successful experience of the domestic semi-steel tire factory "Black light workshop" and the all-steel tire "5G Carbon cloud smart factory" to promote the continuous improvement of "human efficiency, energy efficiency, and product efficiency" and achieve a leap in quality and quantity.
At present, "Digitization, automation, and flexibility" have become the standards for GS's domestic and foreign factory production lines, promoting the development of corporate manufacturing towards green and high-end manufacturing. In recent years, GS has successively won titles such as "National Intelligent Manufacturing Excellent Scenario", "Jiangsu Province Intelligent Manufacturing Demonstration Factory", and "Jiangsu Province Industrial Internet Benchmark Enterprise".
03 Green products lead new market trends
According to the International Energy Agency's "Global Electric Vehicle Outlook 2024" report, global new energy vehicle sales will reach 17 million units in 2024, accounting for more than one-fifth of total global vehicle sales. Sales of new energy vehicles in China will increase to about 10 million units, accounting for about 45% of China's domestic car sales.
In 2023, GS launched the all-steel tire ET series products to effectively solve the problems of heavy new energy trucks, high fuel consumption during transportation, and lack of wear resistance. The company's proportion of large-size, high-margin products of 17 inches and above has increased rapidly, and it continues to enhance its sales premium capabilities and brand influence.
Nowadays, from "Made in China" to "Intelligent Manufacturing in China" and "Created in China", from "cost-effectiveness" to "quality-price ratio" to "high-end", accelerating the cultivation of new productive forces has become a new guiding stone for the transformation of China's tire industry. GS, which resonates with the new trends, will achieve rapid self-adjustment and sustained growth with its excellent strategic layout and profound market insights, showing strong development momentum.
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