South China Tire & Rubber Co., Ltd. Business Report FY ended Dec. 2012

Business Highlights

Contract
- The Company passed testing, evaluation and assessment of Southeast Auto in July, 2012 and had supplied tires for the star product of Southeast Auto V3.The Company had been identified as the best supplier and been bulk supply since September. (From a press release, July 30, 2012)

- The Company will supply the Wanli 185/60R15 tires for the Guangzhou Honda Everus S1 powered by a 1.5-liter engine, starting in March 2012. The program will expand its sales to the automaker, to which it is already providing the Wanli 175/65R14 tires for the Everus S1. Guangzhou Honda has previously been producing the 185/60R15 tires from Michelin. South China Tire & Rubber says its switching to the Wanli tires represents Japanese automakers’ faith in products made by Chinese tire manufacturers. (From a press release, February 6, 2012)

Obtain SmartWay Certification

-The Company's low rolling resistance truck tires 315/80R 22.5 SFR01 and 12R 22.5 SAR02 passed the SmartWay certification test on December 19, 2012 and topped on directory.(From a press release, December 30, 2012)

Award

- The Company has received the Best Teamwork Award for 2011 from Huachen Zhonghua and the Outstanding Contribution Award for 2011 from JAC. (From a press release, January 11, 2012)

Attend Tyrexpo Africa 2012

- The Company exhibited its Wanli tires and Sunny tires at the Tyrexpo Africa 2012 held from March 6 through March 8, 2012. The tire exposition was visited by people from many countries, including the Republic of Botswana and the Republic of Namibia. The company’s Wanli run-flat tires were among those that attracted special attention among visitors. After producing its first Wanli run-flat tire in China in May 2007, the company established a high-speed production line capable of producing 200,000 run-flat tires. The production line became the first Chinese tire manufacturer to obtain a performance testing certification from ECE. The company is confident its presence in Tyrexpo Africa has successfully showcased its high level of development capabilities to the African auto industry. (From a press release, March 16, 2012)

R&D

Aacademic-industrial alliance

- The Company and the materials technology division of South China University of Technology, which have been working on forming an academic-industrial alliance since 2008, jointly established Wanli Tire Research Institute. An opening ceremony was held on September 22, 2011, and the two parties signed a new contract on two new joint development projects, namely, “R&D of rubber materials with ultra-high wear resistance” and “Research on thermal performance of rubber materials for tires and their dynamic properties at high temperatures”. They will further strengthen their collaboration by developing high-performance radial tires, run-flat tires, eco tires and snow tires as well as related technologies in the area of materials, dies, finite element analysis, and performance testing at the new research institute. (From a press release, September 23, 2011)

New product

- In October 2011, the Company started operations of its new production line to manufacture 265/30ZR30 S-1089 ultra high-performance, 30-inch radial tires it had developed in-house. The large, 30-inch rim tires under the 30-series with a low aspect ratio and a wide section width of 265 millimeters offer enhanced speed performance and driving stability. They also contribute to improving braking efficiency, steering performance, and wearing resistance, thereby reducing rolling resistance. The tires are suitable for use on off-road vehicles and SUVs such as the BMW X5 and the Fiat Oltre. Only a few number of global tire manufacturers have 30-inch high- performance tires in their lineups. (From a press release, October 21, 2011)