When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

On July 9, Caixin reporter Xiao Lianghua reported: Domestic and foreign market demand is strong. Sailun Tire's sales volume increased significantly in the first half of this year, and the proportion of high gross margin products increased even more. The company expects performance to double year-on-year.

On the evening of July 9, Sailun Tire released an announcement that the company expects to achieve a net income attributable to shareholders of listed companies of 2.12 billion yuan to 2.18 billion yuan in the first half of 2024, an increase of 102.68% to 108.41% year-on-year; expected to achieve a non-net profit of 2.03 billion yuan to 2.09 billion yuan, an increase of 79.01% to 84.30% year-on-year.

Regarding the reasons for the performance improvement, the company stated that in the first half of 2024, the company's products have been recognized by more and more domestic and foreign customers. Sales of three types of tires, all-steel, semi-steel, and non-road, have reached historically high levels. Sales growth of the company's products in domestic and foreign markets exceeded 30% year-on-year, and the growth of high gross margin products was even greater.

During the on-site investigation of Sailun Tire's overseas factories in June by Caixin reporters, relevant person in charge of the company stated that in the first half of this year, semi-steel tire orders have been very full. All-steel tire orders are generally at a high level due to the different production rhythms caused by the various models.

Among the listed companies in the tire industry, Sailun Tire is the first to "go global" and accelerate its global layout. Currently, the company has four domestic production bases and two overseas bases in Vietnam and Cambodia. In addition, the production bases in Dongjiakou, Qingdao, Indonesia, and Mexico are under planning. Due to the lower overseas tax rates, Sailun Tire's foreign bases have better gross margins.

It is reported that the corporate income tax rate of Sailun Tire's Vietnamese base is relatively low, and the semi-steel tires have no anti-dumping tax rate, only a 6.23% anti-subsidy tax rate, and currently there are no double anti-tax rates for all-steel tires and non-road tires. Cambodia does not currently have double anti-tax rates and has a longer tax exemption period for corporate income tax.

The global tire market demand maintains stable growth, and domestic tires with high cost performance are continuously increasing market share. Some brokerages predict that global tire sales will maintain a compound annual growth rate of about 2.73% by 2026. The global market share of China's tire companies is increasing year by year, and there is still room for significant improvement in the future.