① Gu Cui, chairman of GM Co., Ltd., said that the company's orders for the fourth quarter are still full and the business situation is good. The company will accelerate project construction and capacity release, and the Cambodian base will strive to achieve full production in 2024. ② In terms of providing tire support cooperation with leading NEV companies, company director Bian Yabo explained that in communication and negotiations between the company and some NEV companies, there is currently no formal supporting cooperation.
Financial News Agency, October 23 (Reporter Xiao Lianghua) Q3 orders from leading companies in the tire industry are booming. Can Q4 continue? What is the pace at which the company's production capacity construction is progressing? For General Shares (601500.SH), which has few domestic and overseas dual bases, this is a topic that investors are more concerned about. At the third quarter results briefing held today, Gu Cui, chairman of the company, said that the company's Q4 orders are still full, and the Cambodian base is expected to fully reach production in 2024.
Like industry leaders Sailun Tire (601058.SH) and Linglong Tire (601966.SH), GM's performance in Q3 in 2023 was outstanding. In response, financial director Jiang Jiehua said that benefiting from the recovery of the economic environment and the steady increase in downstream automobile production and sales, the cost performance advantages of domestic tire products have been highlighted. Relying on the advantages of the layout of two overseas bases, the company accelerated the release of production capacity. The company's monthly production and sales volume reached a record high in the third quarter.
Some investors are concerned about the decline in overseas tire demand in Q4. Gu Cui, chairman of the company, said in this regard that the company's orders for the fourth quarter are still full, the business situation is good, and the company will accelerate project construction and production capacity release.
In terms of production capacity, Gu Cui said that the company has built tire factories in Thailand and Cambodia, and the company's Thai factory has maintained strong production and sales, and production at full capacity; the Cambodian base currently has a double anti-tax rate for tire exports to the US, and the company's overall production capacity continues to rise at an accelerated pace, striving to achieve full production in 2024. The company will continue to accelerate the international layout and promote the selection of competitive overseas production sites.
At the performance meeting, some investors suggested that since October, there has been a marked increase in raw materials for the production of tires, such as natural rubber and carbon black. Does the company have any plans to increase the price of its products in the near future?
Bian Yabo, director of the company, responded that since September 28, 2023, the company has raised the price of all steel tire products by 2%-3% and the price of semi-steel tire products by 3%-5%. The company will adjust subsequent product prices according to factors such as raw material prices and downstream market demand.
In terms of providing tire support cooperation with leading new energy vehicle companies, Bian Yabo explained that the company has successively developed Qianlima EV1 new energy passenger car tires, silent cotton anti-stick tires, ET series commercial vehicle tires, etc. In communication and negotiations between the company and some new energy vehicle companies, there is currently no formal supporting cooperation.