On May 15, 2014, the Ministry of Industry and Information Technology issued the “Entry Conditions for the Tire Industry†(Draft for Soliciting Opinions), which seeks from the layout, size requirements, processes, quality and equipment, energy and resource consumption, environmental protection, safe production and occupation of enterprises. Health, announcement management, and other aspects of the tire industry access norms. The impact of the release of tire industry access conditions on related industries and listed companies will be affected. Great Wall Securities investment adviser Yu Haihua has interpreted this. According to the "Tire Industry Access Requirements" draft, future plans to build and re-build radial truck tires, one-time production capacity should reach more than 1.2 million per year; Newly-built, rebuilt or expanded light-duty truck radial tire and passenger car radial tire project One-time production capacity should reach 6 million pieces or more per year; Newly built and rebuilt or expanded construction machinery tires (excluding giant construction machinery tires) should have an annual production capacity of 30,000 or more. In your opinion, the establishment of such a threshold by the Ministry of Industry and Information Technology will change the industry landscape. Yu Haihua stated that the tires have a very large demand in life, and the safety requirements are very high. Therefore, the Ministry of Industry and Information Technology has made a comprehensive plan and request for the entire industry. So far, there are many listed tire companies, but there are actually not many listed companies, especially A shares. A-shares in Shanghai and Shenzhen are all about 6 or 7 tire companies. Shanghai has double money, Fengshen, and Saiwan. Shenzhen has Qingdao Double Star, Qian Qian Tire, and A4 Giti, but now there is no stock reform, and they are far from the conditions. Basically, most of the listed companies' production capacity is mostly over 10 million, 5 million, 6 million, 1.2 million should be no problem, so in general, the draft may be for large companies that have already listed these tires. There is a certain positive effect. The consultation draft also encourages the development of energy-saving, environmentally-friendly, and safe green tires. Green tires are radial tires with low rolling resistance, low fuel consumption, and low exhaust emissions due to the application of new materials and designs. Analysts believe that green tires will become the future direction of development of the tire industry, but there are only a few companies that have actually been put into production. Will green tires bring about the reshuffle of tire manufacturers? It is understood that the development of green tires to achieve industrial upgrading is the trend of the tire industry in the world. It is also an indispensable part of China’s construction of a strong rubber industry in the world. Whether it is adapting to changes in the international market or achieving the goal of domestic energy conservation and emission reduction, Both are imperative. At present, many domestic tire companies have entered or announced to enter the field of green tires, but if there is no quantitative standard, the proliferation of this concept does not help the healthy development of the industry, so the introduction of green tire standards is an urgent requirement for the tire industry. To this end, China Rubber Association launched the research project of green tire industry development in 2012, and will organize the development of green tire self-discipline standards as the focal point of work and complete the formulation of the “Standard†in the shortest time possible. The China Rubber Association hopes that each tire and raw material member company will provide opinions or suggestions in the reference trial and the association will organize amendments in due course. Analysts believe that tire companies have three core competencies: brand value, technical strength, and channel control. Because as a security product, brand value is the preferred factor for consumers to purchase tires, and technical strength determines long-term development potential and brings strategic growth opportunities. In addition, the “product + service†sales model determines channel control power to defend market share. The essential. What are the leading tire companies with brand value, technical strength, and channel control power in A-share listed companies? Yu Haihua said that research on an industry should be studied from top to bottom three tours. Tire upstream is rubber, there are some steel, special steel and the like. Downstream is a variety of motor vehicles, not just cars, motorcycles, bicycles need to tire as long as they can roll. The upstream and downstream are very clear. Whoever gets cheaper rubber or gets more from the upstream, of course, its gross profit will be high. Then the brand value, technical strength, and sales ability and management ability are all enterprises. The core competitiveness. At present, among the seven listed tire companies, the largest production capacity is Shanghai Shuangqin shares, followed by Aeolus, and the only privately owned racing wheel shares are ranked third. Qingdao Double Star, Nguyen Tire and A4 Giti have similar capacity. In terms of gross profit, the average is about 12% to 15%. In the future development plan, each tire company is making long-term plans. The motor vehicle industry has great prospects in China and the market demand is very large. Of course, corresponding to this is that the manufacturers are also very large, may supply more than demand, so there must be greater competitive pressure. Looking at A-share listed company's only privately owned listed company in the tire industry, Saiwon Co., Ltd., after the company completed the acquisition of equity interests in Jinyu Industrial and Shenyang Heping Co. last year, a quarterly report, the company’s net profit attributable to shareholders of the listed company was RMB 96.47 million. Yuan, a 51% year-on-year increase, exceeded expectations. After the company's stock price rose all the way, it was in the correction period recently. What kind of judgement is there for the company's development prospects? As the only private listed company in the tire industry currently listed on the domestic A-shares, the Group has completed the acquisition of the equity interests in Jinyu Industrial, Shenyang and Equality, in accordance with its own development strategy under the premise of continuously improving the system and mechanism. On this basis, a number of aspects were integrated to form a new group management model. Such a group-based management and control model will show competitive advantages in such areas as scientific research and innovation, production optimization, brand marketing, and management enhancement. It will surely promote the company's sustained and healthy development. Hammer Technology is the world's largest tire mold manufacturer with the most complete variety and best customer base. In 2013, the company's tire mold exports continued to account for more than 60% of China's tire mold exports, and foreign customer orders accounted for more than 50%. The company's share price has recently hit a new high in the secondary market. What are the reasons for this company's acquisition of funds? The company is the world's largest manufacturer of automotive tire molds, with a global market share of 7% and a domestic market share of 13%. Compared with its domestic counterparts, in addition to its market share, the company’s product gross margin averages about 5 percentage points higher than its peers. The reason why the company's mold business continues to maintain its leading position lies in its precision manufacturing capabilities. Tire mold is a high-tech, high-precision, high-value-added personalized product. With its excellent R&D and manufacturing capabilities and precision machining capabilities, the company independently produces special EDM machines, which can maintain high-precision products and product quality. 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