On May 31, Guizhou Tire Co., Ltd. recently responded to issues of concern to investors, including measures to respond to rising natural rubber prices and the latest progress of the company's carbon black project.

Faced with the recent rise in natural rubber prices, Guizhou Tire stated that it will adopt a series of flexible strategies to respond based on market changes and the company's actual situation. These measures include more detailed planning of procurement planning and inventory management to optimize supply chain processes. At the same time, the company is also actively implementing a supplier diversification strategy, aiming to spread potential risks and further explore and reduce internal hidden costs.

According to the Carbon Black Industry Network, Guizhou Tire has also made significant progress in carbon black production. The first phase of the company's self-produced 50,000 tons of carbon black project has been successfully put into operation, and its output can meet about 40% of the demand of China's Zazo factory. In addition, the second phase of the 50,000-ton carbon black project also started trial production on May 15. Once the project reaches its designed capacity, the Zazuo plant's carbon black self-sufficiency rate will increase to nearly 80%, which will further enhance the company's raw material self-sufficiency and market competitiveness.

In terms of operating performance, Guizhou Tire performed well in 2023, setting a record high. The company achieved operating income of 9.601 billion yuan, an increase of 13.76% over the same period last year. What is even more remarkable is that its net profit was approximately 833 million yuan, a year-on-year surge of 94.19%. The achievement of this achievement not only demonstrates the company's strong profitability and good market prospects, but also lays a solid foundation for the company's future development.