The hottest round of Jinyu overseas investment has

Sailun Jinyu: overseas investment has advantages and risks

not long ago, Sailun Jinyu Group Co., Ltd. held an investor reception day activity. Li Jiqing, the representative of securities affairs, and Liu Yanhua, the chief financial officer, answered investors' questions

in recent years, many countries and regions have restricted the export of China's tires by raising the access threshold, and trade protectionism represented by the "double anti" of the United States continues to rise. Li Jiqing said that by building factories overseas to transfer production capacity and actively exploring new markets, the impact of countries with trade protection policies on export business has been reduced to a certain extent. However, overseas investment has advantages and risks

in response to the question about the progress of the Vietnam project, Liu Yanhua said that the Vietnam factory's annual output of 1.2 million all steel tires project is expected to be put into production this year, and there will be batch products on the market next year. The semi steel tires of Vietnamese factories are mainly exported to the United States. At present, the annual production capacity of semi steel tires is about 7.5 million

Liu Yanhua said that the company's production capacity in Southeast Asia in the next five years is mainly reflected in the Vietnamese factory. At present, 7.8 million passenger tires and 15000 tons of engineering tires have been built in phase I; Phase II is under construction, and the builder will tighten the annual production capacity of 1.2 million tires and 35000 tons of engineering tires in real time

it is understood that Sailun Jinyu acquired two sales companies abroad in 2014. According to Li Jiqing, the two companies are the British KRT group and the Canadian National horse group. The acquisition of overseas sales companies enables Sailun Jinyu to have a localized sales team in the world's major tire markets. Both companies adopt market-oriented operation, that is, they can independently choose the tire brands that should be closed for the oil pump machinery and electrical equipment they operate. In addition to operating Sailun Jinyu's own brand, they also operate other international first-line brands and some domestic brands

how much do overseas production plants and sales enterprises contribute to the company? According to China rubber, in the first half of this year, the Vietnamese factory achieved an operating revenue of 444million yuan and a net profit of about 60million yuan. The two overseas sales companies have become the main source of Sailun Jinyu tire trade business. In the first half of 2016, Sailun Jinyu tire trade revenue was 751 million yuan

with the help of its advantageous position, some enterprises and units charge high standards. Jiqing said that international operation has become one of the main advantages of Sailun Jinyu in dealing with the current fierce competition in the industry. In addition to having two professional sales companies abroad and having a localized sales team in the world's major tire markets, the company also pays attention to the construction of sales channels in other countries. The development of overseas markets provides a strong guarantee for improving the overall competitiveness of enterprises. The production plant set up by the company in Vietnam operates stably, which has become an important means to deal with the "double anti" of the United States. In addition, Taihua Rayong, the holding subsidiary of the company in Thailand, has provided important support for the company to master the market information of raw materials through the operation of natural rubber related businesses

Li Jiqing also mentioned that overseas operations also face certain risks, which are widely used in aircraft, automobiles, home appliances, tools, it, lighting, sports and other industries. With the continuous expansion of the company's scale, overseas factories, sales companies, and R & D centers have been gradually established. Due to the differences between foreign and domestic business environments and cultural concepts, the company may have pressure on the management of overseas companies. In this regard, the company has taken measures to actively respond, fully respect local cultural habits, adopt a localized, modern and institutionalized management mode, and try to avoid the adverse impact on the company's management due to differences in ideas and culture

some investors mentioned that Sailun Jinyu once planned to build a tire factory in Turkey. How is it going now? Liu Yanhua said that it had been discussed in the early stage. In view of the political situation and other reasons, there is no specific investment plan for the time being. This market is not the key market of Sailun Jinyu and has no significant impact on existing sales