Ssangyong shares: green tires help it grow

In 2010, Shuanglong Company achieved an operating income of 113 million yuan, an increase of 43.38%, a total profit of 28 million yuan, a year-on-year increase of 3.6%, and a net profit of 0.44 billion yuan attributable to the company, an increase of 3.71% year-on-year.

The main products are produced and sold well. In 2010, Ssangyong’s market scale continued to expand, and its main business developed well. The main products of the T150, TMG, and matting agent series achieved operating revenue of RMB 46 million, RMB 22 million, and RMB 21 million, respectively, which accounted for the main business income. 40.7%, 19.5%, and 18.6%, respectively, increased by 120%, 14.5%, and 74.8% compared with 2009.

In 2010, operating income increased by 43.38% year-on-year, and total profit increased by 3.6%, which was mainly due to the rapid increase in raw material costs of Ssangyong. Its core performance was the company's sales gross margin decreased from 54.33% in 2009 to 2010. 47.25% of the year, a decrease of 7.08 percentage points. For the short-term decline in gross profit margin, since Ssangyong’s main products are all medium- and high-end and have certain pricing power, Ssangyong Company has not transferred the pressure of rising costs to the terminal. This is largely in line with Ssangyong Company is now in an active position. Related to the stage of market development.

The settlement of production capacity has brought the foundation for Ssangyong's expansion. Before the listing, the biggest problem for Ssangyong was insufficient capacity. To this end, Ssangyong has increased its existing production capacity from 12,000 tons to 16,000 tons. After the listing, the company raised investment projects by 20,000 tons, and it is expected to reach the end of 2011. In addition, Shuanglong Co., Ltd. cooperates with Jiangxi Wanzai Huiming Chemical Co., Ltd. to produce 30,000 tons of precipitated white carbon black projects annually to increase production capacity. By then, Shuanglong will have a total capacity of 66,000 tons, which will provide the foundation for Ssangyong's expansion.

Green tires will be the future. The green tire is made by adding highly dispersed white carbon black between tread rubber molecules, which can effectively reduce friction, reduce rolling resistance and energy consumption. Relevant studies have shown that it is expected that the compound growth rate of highly dispersed white carbon black for green tires will reach over 100% in the next five years. At present, Ssangyong Company has successfully developed "GF" series of highly dispersed white carbon blacks for the production of green tires, which have been tested by the Beijing Rubber Industry Research and Design Institute to reach the level of similar products of the world.

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