Giti Tire Corp. (a Shanghai-listed company) recorded a 64% year-on-year drop in 2010 net profit attributable to shareholders to 54 million yuan.
This was despite a 36% year-on-year increase in revenue to 3.61 billion yuan, according to a company filing.
The reason for the lower profits is said to be the fact that the company didn’t raise selling prices while it has been facing higher material costs and fluctuations in the foreign exchange rates.
Giti reportedly expects revenue to exceed 4 billion yuan in 2011 and various news sources have reported that the company “will focus on overseas expansion in 2011.” It is not clear whether this means establishing production facilities outside China, expanding the group’s existing capacity abroad (such as the Giti group’s Indonesian Gajah Tunggal operation) or simply to increase international sales.
In addition to the Giti Tire’s overall results, the company reports that Giti earned an investment return of 71.4 million yuan from its Fujian Giti Tire subsidiary. This part of the business is said to have recorded revenue of 3.6 billion yuan and net profit of 110 million yuan in 2010. (Tyres & Accessories)
