Growing against headwinds and achieving growth in both revenue and net profit
- Revenue for the Period was approximately RMB 8,152.0 million, representing an increase of 8.2%
- During the period, the sales volume of tires amounted to approximately 18.5 million units, which was basically flat year-on-year
- Gross profit was approximately RMB 1,169.8 million, representing a year-on-year increase of 12.6%
- Profit attributable to shareholders of the Company was approximately RMB 393.8 million, representing a year-on-year increase of 42.5%
- Basic earnings per share amounted to RMB 0.62, representing a year-on-year increase of 44.2%
- Proposed final dividend of HKD0.20 per share
HONG KONG SAR 3 April 2023 – Prinx Chengshan Holdings Limited (hereinafter referred to as the “Company” or “Prinx Chengshan”, together with its subsidiaries, the “Group”; stock code: 1809.HK) announces its results for the 12 months ended 31 December 2022 (the “Reporting Period”).
Looking back at 2022, Prinx Chengshan focused on strategy and seized opportunities. With the unremitting efforts of all employees, through flexible strategies and tenacious resilience, relying on the production capacity layout at home and abroad and diversified marketing channels, and under the challenges of fierce competition in the domestic and foreign tire market, it achieved growth in both operating income and net profit. The Company achieved outstanding performance in the international replacement market, and the operating income from the international distributor channel increased by 31.9% year-on-year.
Since its listing in 2018, Prinx Chengshan has firmly implemented the strategy of international development. During the Reporting Period, the first and second phases of the Tire Production Base in Thailand have entered the stage of high-quality and efficient operation, and the production expansion project of the Tire Production Base in Shandong has reached full capacity in 2022. The construction of smart factories and the production capacity layout at home and abroad have laid a solid foundation for future development.
During the Reporting Period, Prinx Chengshan actively explored the market and optimised the channel layout. Based on deep insight into consumers, Prinx Chengshan has formulated the brand strategy of “Multi-brand, Differentiated Development with Integration of Internationalization and Localization”. Its four major brands: Chengshan (Chengshan), Prinx (Prinx), Austone and Fortune completed system revamp. By reshaping the brand experience and value proposition in an all-round way and using a younger language, we will reiterate our commitment to users and partners in the era of sustainable travel. Prinx Chengshan is committed to helping every user explore a better life with the wisdom and perceivable technology of new manufacturing.
In line with the brand renewal, Prinx Chengshan has successively launched new products, such as passenger car tires “Hua Ren”, “Hua Yue”, new electric vehicle product”XLAB COMFORT EV” and”XNEX SPORT EV” . The “XNEX SPORT EV” tires won three international design awards with both physical appearance and strength. The product of Prinx electric vehicles was launched in the self-operated flagship store on JD.com and was well received by users.
Prinx Chengshan drives development with technological innovation and improves efficiency with lean production. Through the establishment of a fundamental research system with independent intellectual property rights, the design automation and performance prediction intelligence have been realised, providing effective technical support for product development. In 2022, the Group was granted 78 new patents, including 1 invention patent and 48 utility model patents, and was granted 330 intellectual property rights.
With the principle of sustainable development as the foundation of its development strategy and daily operation, Prinx Chengshan adheres to the concept of people-oriented, research and development of innovative products and green and sustainable development, and has been awarded the title of “Energy Efficiency Leader” for seven consecutive years, further enhancing the core competitiveness of the industry.
Looking forward to 2023, with the global economic downturn and inflation, market demand will remain weak, while the war in Russia will continue to affect the global supply chain system. Since the lifting of domestic epidemic prevention and control policies in December 2022, it is expected that the Chinese economy will rebound rapidly in 2023, showing a trend of recovery. The suppressive factors of the tire market have been improved, and the domestic King Wan is expected to resume growth under the epidemic recovery, and the All Steel Radial Tire market is expected to recover; Overseas orders for Semi-Steel Radial Tires have gradually recovered since the fourth quarter of 2022, and the domestic replacement market is expected to pick up with the increase in residents’ outbound activities.