Hainan Rubber Surpasses RMB 400 Million in Profit in the First Half of the Year to Plan for “Going Out of the Country”

On the afternoon of August 15, Li Mingquan, President of Hainan Natural Rubber Industry Group Co., Ltd., introduced the research group of the 11th National People's Congress of Hainan Province. In the first half of the year, the company realized operating income of 4.305 billion yuan, a substantial increase of 89.9% year-on-year; attributable to the shareholders of the listed company. The net profit of the company was 422 million yuan, a year-on-year increase of 54.11%. At present, Hainan Rubber further controls the right to speak in the international natural rubber market by implementing "big marketing" and "going out" strategies.

Number of billions of deep processing projects in Hainan rubber

On the afternoon of the 15th, the research team of the 11th National People's Congress of Hainan Province walked into the Hainan Rubber Deep Processing Industrial Park in the Chengmai Old City Economic Development Zone to learn about the rubber operations in Hainan. Hainan Rubber was born in Hainan Agricultural Reclamation. It is a new listed company and one of the reform achievements of Hainan Farming Reclamation.

Li Mingquan introduced that there are 3 deep-processing projects within the Hainan Rubber Deep-processing Industry Park, namely latitude and longitude latex yarns, Anshunda rubber products and know-known latex gloves and other projects. Jingwei LaTeX Wire Company has completed and put into operation two production lines for Italy's Poissue, with an annual output of 5,520 tons of latex filaments and an output value of 220 million yuan. The groundbreaking ceremony was held at the end of February this year and is now in the normal production stage. In the first half of this year, 192 tons of latex wire was produced. The second phase plans to build eight domestic production lines, with an annual output of 27,600 tons of latex yarn and an output value of 1.1 billion yuan. The third phase plans to build two import production lines, with an annual output of 33,120 tons of latex yarn and an output value of 1.3 billion yuan.

An Shunda Rubber Products Co., Ltd. has completed and put into operation a tread rubber production line with an annual output of 6,800 tons of rubber compound, middle cushion rubber and tread rubber with an output value of 177 million yuan. In March this year, equipment commissioning and trial production were carried out. In the first half of this year, 111.6 tons of tread rubber, 27 tons of rubber compound, 98% of tread rubber pass rate and 100% pass rate of mix rubber were produced. The second phase plans to build a tread rubber vulcanization production line with an annual output of 15,000 tons of rubber compound, middle pad rubber, and tread rubber, with an output value of 390 million yuan.

Knowing that Latex Gloves is a joint venture funded by Hainan Rubber Co., Ltd. and Malaysian Knowledge Management Co., Ltd., four production lines have been built in the first phase, with an annual output of 700 million gloves and an output value of 120 million yuan. At the end of February this year, it entered trial production. In the first half of this year, it produced 58.45 million gloves. The product qualification rate reached about 98%. The second phase plans to build 10 production lines, with an annual output of 1.7 billion gloves and an output value of 320 million yuan. In the third phase, it plans to build 30 production lines, with an annual output of 5.1 billion gloves and an output value of 930 million yuan.

At present, Shuangqin Group, Jiatong Tire, Bridgestone, Triangle Tire, Jiangsu General Motors, Hebei Guohua, and a number of well-known domestic large-scale tire terminal and product terminal enterprises have become stable customers of Hainan Haijiao.

Hainan Rubber, which accounts for half of the country’s share, plans to “go abroad”

Li Mingquan said that Hainan Rubber is currently implementing the “big marketing” and “going out” strategies and gradually diversifying its business. In addition to the possession of resources in the local cultivation of rubber, Hainan Rubber actively participates in competition in the market, expands the market to carry out trade to control more resources and increase market discourse power. According to reports, in the first half of this year, Hainan Rubber’s share of rubber purchases accounted for half of the country’s share.

It is understood that Hainan Rubber is promoting enterprise-style and extension-type development, and further control the right to speak in the international natural rubber market. The connotative development is through the focus of listing and investment funds, promoting the tapping technology improvement, accelerating the renovation of old-aged rubber gardens, and improving the ability to produce rubber.

Extensive development is to control more rubber resources through the strategic deployment of "consolidating the islands, crossing the strait, and going out of the country." First of all, Hainan Rubber will increase its control over the planting of rubber by local people in Hainan Island. In addition to the 3.53 million mu of rubber forest, it will gradually control the private rubber planted by most local people. Secondly, the tentacles were extended to Yunnan to increase the control of Yunnan's rubber resources. In March this year, the Yunnan company was listed and operated in Jinghong City.

Finally, the implementation of "going out of the country" strategy, plans to control the resources in countries such as Southeast Asia, Africa, suitable for rubber planting, this year in May, Hainan Rubber and Thailand's Taihua Gujia Co., Ltd. signed a 25% acquisition of a letter of intent.