Compared with the 2016 financial statements, the performance of many auto parts companies remained good in the first quarter of this year. Among them, Weichai Power and Huayu Automotive's net profit attributable to shareholders of listed companies exceeded RMB 1 billion in the first quarter. The reporter learned that under the background of the growth of the overall performance of auto parts companies, there are large differences among the companies, and even a few have suffered losses, especially tire companies. A number of tire companies such as Aeolus Co., Ltd., Sai Jinyu, and Linglong Tire reported that the company’s profits have declined to varying degrees due to the upward movement of raw material prices. A quarterly report has markedly different performance Since the beginning of 2017, the overall growth rate of the auto market has been slowed down due to factors such as the tightening of auto consumption preferential policies and the decline of new energy subsidies. However, upstream parts and components companies have not been significantly affected. The research report of Ping An Securities pointed out that in the first quarter, auto parts companies were not affected by the slowdown in the growth of auto sales, benefiting from the increase in market share, they still achieved higher growth rates. The actual situation is indeed the case, a number of auto parts companies in the first quarter net profit has shown upward momentum. For example, Weichai Power achieved a net profit of RMB 1.18 billion in the first quarter, which was a year-on-year increase of 158.38%; Wanliyang’s net profit was RMB 238 million, a year-on-year increase of 235.88%; Ningbo Huaxiang’s net profit was RMB 189 million, a year-on-year increase. 76.51%; Mengshi Technology's net profit was 3,494,200 yuan, an increase of 32.83%. However, compared with the overall performance of most listed auto parts companies, there are also some subdivided industries and companies that may experience declines or losses, among which tire companies are more typical. For example, in the first quarter, Linglong’s net profit was 255 million yuan, a year-on-year decrease of 6.67%. Fengshen's net profit was -119 million yuan, a year-on-year decrease of 508.91%. Racer Jinyu's net profit was -50.718 million yuan, a year-on-year decrease of 153.3%. . The reason is mainly due to the fact that the raw material prices continued to rise in the fourth quarter of last year. It is understood that, though, since the fourth quarter of last year, many tire companies have generally increased the sales of some tire products according to the same industry conditions, raw material costs and profitability, but they have not completely reversed the declining performance. "The cost of raw materials accounts for about 80% of the total cost of the tires. In the main raw materials of tires, the cost of rubber accounts for more than 60%. The changes in the market for rubber will have a direct impact on the cost structure and pricing proposals of tire companies." Liu Zixin, Minister of Market Planning of the Company Limited, told reporters. According to Zhu Yuanchuang's forecaster Wang Yuanyuan, rubber prices have risen significantly since October last year, but since the beginning of February this year, the market has fallen back to pre-price increases. In addition to being affected by the rubber market, steel cord prices, which account for about 15% of the tire cost, are still growing. “Since last year, the market for steel cords has shown upward trend. There was a slight fine-tuning in early April and early May of this year. This is affected by the persistence of the high prices of the upstream rods and the small number of processing companies in China.†Zhuo Chuang, Information Forecaster, Chen Huifang Indicated. Tire Enterprises Aim at Overseas Markets In the context of rising raw material prices and declining performance, tire companies have begun to focus on overseas markets. Many companies including Wanli Tire during the year have stated that they may implement plans to build factories overseas, and destinations are mostly concentrated in Southeast Asia such as Vietnam, Thailand and Malaysia. Some companies may choose to deploy the United States. The reporter learned that in order to further develop its global strategy, Wanli Tire plans to invest in the construction of a radial tire factory in South Carolina, USA, with a total investment of US$1 billion. Liu Zixin also told reporters that at present, Wanli Tire's factory project in the United States has entered a substantive stage of advancement. In response, Shi Jianhua, deputy secretary-general of the National Association of Automobile Manufacturers, believes that “since the property rights of the parts and components companies are completely open, and many foreign parts and components companies have chosen to build factories in China, the pressure on local parts and components companies is very high. Big, especially in high-end parts." At this year's Shanghai Auto Show, Wanli Tire announced the Wanli F plan and a concept tire, which aims to narrow the technological gap with other international tire brands. In addition, the reasons for tire companies to lay out their overseas markets are not only responding to current difficulties but also responding to national policies. At the end of April, the "Ministry of Industry Long-term Development Plan for the Automotive Industry" jointly issued by the three ministries mentioned that by 2020, a number of auto parts companies with a scale of more than 100 billion will be formed, and they will have strong international competitive advantages in some key core technology areas. By 2025, it will form a number of auto parts companies that have entered the top 10 globally. Sheet metal parts NINGBO DAIKE INTELLIGENT TECHNOLOGY CO.,LTD , https://www.daker-hardware.com
Weichai Group 
Fengshen Tire
Parts company’s performance in the first quarter of the two days: Tire enterprise layout overseas “self-helpâ€
Recently, a number of listed auto parts companies released their first quarterly reports in 2017.