This is the End-October edition of our monthly China tire industry updates. It is based on content from our weekly China Tire Industry intelligence report. Following last month’s revelations about Triangle’s over-stated revenues, there is continued evidence of the same in the company’s Q3 results where Triangle revenues continue to decline while those of Linglong
This is the End-September edition of our monthly China tire industry updates. It is based on content from our weekly China Tire Industry intelligence report. This month in China’s tire industry we saw the culmination of Triangle’s 3-year project to raise USD 650m in cash through a share issue. We also saw a lesser-known company,
I think the tire industry is going through another major transformation. Since I started analysing this industry in the late 1980s I’ve seen only two or maybe three such large-scale transformations. To give you an idea of the scale of transformation I am talking about, think of the switch from bias-ply to radial construction in
Continuing our reporting on developments in China’s tire industry, August has been an active month, with IPO approvals given to both Triangle and GST. Triangle’s is going well, with the share price of RMB22.07 raising up to USD640m. The 30% share that was sold online was over-subscribed by a factor of over 2000 times. (See
Last week, after many delays, Triangle Tire finally launched a programme to sell up to 200m shares on the Shanghai stock exchange. The issue price will be RMB22.07/share, leading to a potential gain of RMB 4285m (USD 641m) after costs and charges. The issue is scheduled to take place in the first half of September.
Where grip comes from No-one knows the truth about how tires get their grip. We have a pretty good idea, but we don’t know everything about it. We know, for example that grip is associated with a number of factors: Rubber distorting around and engaging with microscopic asperities in the road surface; Weak chemical interactions
The biggest news in the China tire industry over the last weeks has been the IPO share issue of Linglong. It was a great success, with the Linglong share price rising 44% on the first day of trading and subsequently climbing to three times the issue price of RMB12.98. We have to ask: was the
In 30-odd years of reporting on the global tire industry, I’ve come across countless estimates of the number of vehicles on the road with one or more defective tires. The one thing these surveys agree on is that it is a lot. People do not care about tires People in many countries and all kinds
Let me first say that I don’t like discussing politics in public. I think that in general, business tries to do its best, irrespective of the interference of politicians, many of whom are only in post for a few years and cannot take a long term view. And even more of whom have little idea
I’ve just come back from a week in China and wanted to update readers on developments there. IPOs go ahead Linglong has announced that its initial public offering (IPO) is going forward and the company has published its revised prospectus. I have posted a story, together with detailed financials on my company website. The listing
A weekly newsletter of developments in the China tire industry including news reports and David Shaw’s expert commentary and analysis.
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