South China Tire & Rubber Co., Ltd. Business Report FY ended Dec. 2017
Recent Development
-In March 2016, Guangzhou Fengli Rubber & Tire Co., Ltd., a subsidiary of the Company, announced that it will change its company name to Wanli Tire Co., Ltd. The company also said it is aiming to be listed on the stock market through an initial public offering (IPO). The company was established jointly by Guangzhou Wanli Group Co., Ltd. and South China Tire & Rubber Co., Ltd. in December 2004. It held a cornerstone ceremony for its plant in July 29, 2005, and began producing high-performance tires on September 15, 2006. A total of CNY 1,300 million has been invested, and the company is currently capitalized at CNY 445 million. The plant is capable of producing 6 million tires per year, and manufactures products worth CNY 1,000 million per year. (From news releases issued by multiple sources on March 30, 2016)
-In February 2016, Wanli Tire Co., Ltd., a subsidiary of the Company, moved its headquarters to the No.3 Wanli Road, Aotou Town, Conghua District, Guangzhou. The subsidiary will phase out production at its existing plant in Panyu, planning to stop the plant's entire operations by December 31, 2016. (From an announcement by the company on February 6, 2016)
Financial Overview
-Wanli Tire Co., Ltd., the Company's subsidiary announced that it has produced an aggregate total of 12.50 million units of its Wanli-brand tires in 2015, which was a 7.6% increase from the previous year’s volume. Wanli plans to establish a research center and a new factory outside China, and will move ahead with its global expansion plan. (From news releases issued by multiple sources on April 29, 2016)
New Plant
-In November 2016, Hefei Wanli Tire Co., Ltd., which was formed jointly by Wanli Tire Co., Ltd. in the Guangzhou Wanli Group and Jianghuai Automobile Co., Ltd., officially began production. Approximately CNY 1.42 billion was invested in this plant, which was smaller than the CNY 1.98 billion that was originally planned. The plant was built on approximately 333,000 square meters of land, and construction started on June 26, 2015. The facility's annual production capacity for steel radial tires is expected reach 1 million units by the end of 2016 and 2 million units by the middle of 2017. (From news releases issued by multiple sources on November 10, 2016)
-The Company announced that Hefei Wanli Tire Co., Ltd., its subsidiary, is conducting trial operations, readying for production launch. The plant is capable of producing 2 million environmentally friendly radial tires for trucks per year. The production facility was invested jointly by Guangzhou Fengli Rubber & Tire Co., Ltd. and Hefei JAC. Construction of the new plant began on June 26, 2015. The facility has a land area of approximately 333,000 square meters, and investment in the facility totaled CNY 2 billion (From news releases issued by multiple sources on August 26, 2016)
Strategic Cooperation
-Wanli Tire Co., Ltd., a subsidiary of the Company, has signed a long-term contract with Rockwell Automation of the U.S. to collaborate in the areas of control systems, information software platforms, and artificial intelligence. Under the US 40 million agreement, Wanli Tire will initially construct a new plant in Hefei, which will adopt Rockwell's automated control system and other technologies. The new tire plant will become China's first of its kind that extensively utilizes artificial intelligence. (From news releases issued by multiple sources on May 19, 2016)
R&D Facility
-The Company's testing center was recognized by China National Accreditation Board for Laboratories (CNAS) and bacame national testing center in 2006.
New Product
-Wanli Tire Co., Ltd., the Company's subsidiary announced that the new tire it has developed for new energy vehicles is scheduled to be released by the end of 2016. The tire is made of new materials and offers a 10% improvement in rolling resistance. It also features a run-flat technology that enables the vehicle with a punctured tire to continue to be driven at speeds up to 80 kilometers per hour. (From news releases issued by multiple sources on August 9, 2016)