Good News on Listing | Frost & Sullivan Congratulates Hainan Rubber Group Co., Ltd. on Successful Listing on the Shenzhen Stock Exchange (001233.SZ)

Hai'an Rubber Group Co., Ltd. (hereinafter referred to as 'Hai'an Rubber') successfully listed on November 25, 2025, issuing a total of 46.4933 million shares at an issue price of 48 yuan per share.

● Technology R&D Advantages

Since its establishment, Hainan Rubber has focused on the field of all-steel giant tires, continuously enhancing its independent innovation capabilities. It has achieved several key technological breakthroughs in aspects such as rubber compound formulation, tire body structure, and production processes. Long-term technical accumulation and continuous R&D investment have given it a significant technological advantage in the field of all-steel giant tires. In 2015, Hainan Rubber successfully developed an all-steel giant tire product with the specification 59/80R63 in collaboration with Beijing Rubber Industry Research and Design Institute. This is currently the largest specification model of all-steel giant tires used globally and passed the scientific and technological achievement appraisal by the China Petroleum and Chemical Industry Federation in December 2019. According to the appraisal certificate, "This technology and product fill a domestic gap, making China the third country in the world capable of producing 59/80R63 giant tires. The technology and product as a whole have reached an international advanced level." This technological achievement won the first prize of the Science and Technology Progress Award from the China Petroleum and Chemical Industry Federation in 2020.

● Product quality advantages

The all-steel giant tire products independently developed and produced by Hai'an Rubber have gradually gained widespread recognition from downstream customers due to their excellent product quality, stability, and reliability. This has broken the monopoly of the domestic all-steel giant tire market by the three major international brands, achieved import substitution, and promoted the localization process of all-steel giant tires. Currently, their all-steel giant tire product series are complete, covering 49 inches, 51 inches, 57 inches, and 63 inches in full range specifications. They can meet the supporting needs of 90-400 ton mining trucks, adapt to various mining environments, and the quality of all-steel giant tires has reached the leading level in China and advanced international standards.

●Customer resource advantage

Relying on its technical and product advantages, Hainan Rubber has formed long-term strategic cooperation relationships with many leading customers across various industries by quickly responding to their needs, thereby helping them achieve sustained and stable business development. Currently, Hainan Rubber has become a long-term partner of many large mining companies and mining cart manufacturers worldwide. Leveraging the market influence of leading customers in the industry, it can quickly acquire more customer resources and steadily expand the market, providing a solid foundation for the continuous and stable growth of its performance.

● Operational model advantages

Hai'an Rubber provides customers with operational management services for mining tires, which can effectively enhance the production safety and supply chain security of mining companies, improve production efficiency, and reduce the tire usage costs of mining companies. At the same time, during the service process, it can accumulate a large amount of tire operation data and continuously improve products. Adopting this model is conducive to the market promotion of Hai'an's steel giant tire products and increases customer and company loyalty, thereby enhancing the industry's entry barriers.

● Core talent advantage

Hai'an Rubber places great emphasis on talent development, continuously accumulating and cultivating leading talents in the industry since its establishment. Mr. Huang Zhenhua, the chief engineer, has been deeply involved in the mining tire field for many years, leading his team to obtain dozens of national patents. The technical center he leads has received the title of 'Provincial Technical Center', and the laboratory he directs has been awarded the title of 'Fujian Provincial Key Laboratory for Giant Engineering Radial Tires' by the Fujian Provincial Department of Science and Technology. He has also participated in the compilation and drafting of several national standards and group standards. Hai'an Rubber has established a research and development team with a reasonable structure and strong cohesion, laying the foundation for its continuous business development.

● Intelligent advantages

Hai'an Rubber is committed to the intelligent development of mining tire operation management, independently developing the ITMS (Intelligent tire management system). It can achieve precise monitoring of the air pressure and temperature of each tire. The system automatically converts cold and hot state air pressure values, enabling tires to operate within the optimal air pressure and temperature range. Tire air pressure and temperature data can be transmitted to the display screens of mining truck drivers via the cloud, as well as to the computers or mobile phones of relevant mine managers. When tire air pressure and temperature are abnormal, the system will immediately alarm, notifying the driver through the display screen and also to relevant mine managers through the computer or mobile phone, thus achieving early warning of tire operation faults, avoiding tire failures or safety accidents, and effectively improving the safety management level of mining tire operations.

● Global layout advantage

Hai'an Rubber is committed to providing full-steel giant tire products and services to customers worldwide, with its global business layout becoming increasingly complete. As of the end of the reporting period, it owns 12 overseas subsidiaries or branches. Its full-steel giant tire products have been sold to dozens of countries and regions around the world, and it has provided full-steel giant tire products or mining tire operation management services for hundreds of mines globally. Overseas sales account for more than 75% of its revenue. By establishing overseas subsidiaries or branches, it helps Hai'an Rubber form a global marketing network, drive surrounding markets, and its globalization layout helps the company achieve leapfrog development.

In 2022, Hainan Rubber ranked fourth globally with a production of 14,000 full steel giant tires, accounting for about 6.5%, second only to the world's three major brands, and first among domestic enterprises.

Frost & Sullivan has long been monitoring the global and Chinese tire industry, publishing a large number of research reports, which are widely cited in the prospectuses of leading listed companies in the industry, helping clients accelerate growth.

Over the past five years, the global tire market has grown relatively slowly due to the impact of automobile production. Global tire production increased from 2.07 billion units in 2019 to 2.35 billion units in 2024, with an annual compound growth rate of 2.6%. Among them, non-road tires increased from 350 million units in 2019 to 500 million units in 2024, with an annual compound growth rate of 7.6%. In the future, with further expansion of the tire replacement demand market, global tire production is expected to grow at an annual compound rate of 2.5% to reach 26.7 billion units. Non-road tire production is expected to reach 680 million units in 2029, and highway tire production is expected to reach 1.99 billion units in 2029.

Global tire market size, by production (in billions), forecast for 2019-2029

China's tire production increased from 710 million units in 2019 to 930 million units in 2024, with an annual compound growth rate of 5.4%. Among them, road tires are an important part of the overall tire market. The production of road tires increased from 690 million units in 2019 to 900 million units in 2024. Non-road tires increased from 2019's 20 million units to 0.3 billion units in 2024 at an annual compound growth rate of 4.8%. With the increase in future automobile ownership and export market demand, the scale of China's tire market is expected to grow at a compound annual growth rate of 5.0% to reach 1.19 billion units by 2029. In addition, with the recovery from the pandemic and the continuous expansion of China's construction machinery manufacturing industry, it is expected that the scale of the non-road tire market will grow at a compound annual growth rate of 4.2% to reach 0.4 billion units in the next five years.

China's tire market scale, calculated by output (100 million units), forecast for 2019-2029

Radial engineering tires are a structural form of engineering tires, where the carcass cords are arranged in a radial direction (90° or nearly 90° from the centerline of the tread), and there is a belt ply that is almost circular in shape, tightening the carcass. Depending on the material of the tire, they can be divided into all-steel radial engineering tires and semi-steel radial engineering tires. All-steel radial engineering tires have a carcass and belt ply made entirely of steel cords, generally used for large tires on trucks and construction machinery vehicles. All-steel radial tires are characterized by wear resistance, puncture resistance, durability, high mileage, long service life, low rolling resistance, and low fuel consumption; semi-steel radial engineering tires have a carcass made of rayon or other fibers, and the belt ply is made of steel cords. These radial engineering tires are generally used for sedans or light trucks, such as buses, and are more suitable for smaller tires.

Giant all-steel radial engineering tires refer to those with a rim diameter of 49 inches or more, commonly used in large mining dump trucks and loaders. They are characterized by high load capacity, strong wear resistance, harsh operating environments, long continuous operation times, and high production technical difficulty.

According to production, the global market size of giant all-steel radial tires increased from 176,000 units in 2019 to 250,000 units in 2024, with an annual compound growth rate of 7.4%. The market is in a state of supply falling short of demand. Due to the longer lifespan, higher wear resistance, and lower operating costs of radial tires compared to bias-ply tires, global mining activities have further developed. The use of heavy machinery has promoted manufacturers of giant all-steel radial engineering tires to expand production capacity. The radialization rate of giant tires continues to rise, and it is expected that by 2029, radial tire production will grow rapidly and replace bias-ply tires to meet market demand. The global production of giant all-steel radial engineering tires will grow at an annual compound rate of 6.1% to reach 337,000 units in 2029.

Global market size of giant all-steel radial engineering tires, by production (10,000 units), forecast for 2019-2029

According to production volume calculations, the market scale of China's giant all-steel radial tires has increased from 16,000 units in 2019 to 47,000 units in 2024, with an annual compound growth rate of 24.3%. With the increasing demand for mining exploitation downstream of the industrial chain and the continuous improvement of production technology, domestic brand giant radial engineering tires will occupy a larger market share in the future. It is expected that the production volume of giant all-steel radial engineering tires in China will grow by 15.0% annually with a compound growth rate over the next five years, reaching 94,000 units.

The market scale of giant all-steel radial tires in China, calculated by output (10,000 pieces), is forecasted for the period from 2019 to 2029.

●Stable growth in downstream customer demand

The downstream customers of the giant all-steel radial engineering tire company mainly consist of mining companies and mining machinery companies. Mineral products and primary smelting and processing products are an important material foundation for the development of the national economy. Their safe and stable supply is crucial for national economic security, industrial security, and national defense security. Due to the importance of the industry, global mineral product production has been growing steadily and safely. In addition, China has strengthened reforms in the mining sector by streamlining administration, combining decentralization with regulation, and optimizing services, giving full play to the decisive role of the market in resource allocation, which has played a positive role in promoting related industries. At the same time, with the implementation of the 'Made in China 2025' strategy, the adjustment of manufacturing structure, and the continuous advancement of product upgrading and replacement, the demand for strategic emerging industries for mineral raw materials such as copper, manganese, nickel, phosphorus, and iron will be increasing. Clearly, the market for strategic minerals in the future cannot be underestimated. The number of open-pit mines using large mining equipment has increased from 1,383 in 2014 to 1,561 in 2021. The world's mineral resources are rich and diverse, with coal mines accounting for the largest proportion among mainstream minerals. The number of coal mines accounts for about 30.0% of the total global mines. Australia and Brazil are rich in iron ore resources and are major iron ore exporters. Coal consumption in Europe accounts for more than half of primary energy consumption, so the prospects for coal mining in Europe are still relatively optimistic. From a global perspective, the stable growth in the number of mines has driven up the demand for giant all-steel radial engineering tires, presenting a situation of supply falling short of demand.

● Driven by the Belt and Road Initiative

The 'Belt and Road' strategy is an important initiative launched by our country in response to the current international and domestic situation, and it holds significant importance for promoting economic prosperity along the route and bilateral and multilateral regional economic cooperation. Mining cooperation is an important part of the 'Belt and Road' strategy. Some countries along the route possess rich mineral resources and are major supply bases for mineral raw materials in the world. More importantly, the mineral resource cooperation among countries has strong complementarity. Through the development of the 'Belt and Road', giant companies can better go global, reach long-term cooperation with countries along the route, enhance brand awareness, and bring new opportunities to giant companies.

● The supply chain is continuously maturing

Since entering the 21st century, the construction of information technology has enriched the means of production in the industrial field, improved the manufacturing and control capabilities of products in the industrial sector, and following 'Industry 4.0', countries such as China and the United States have correspondingly proposed concepts like 'Made in China 2025' and 'Industrial Internet'. Productivity has been continuously enhanced, and supply chain technology has also matured. Moreover, tire production in our country is gradually moving towards intelligent manufacturing and digitization.

Through the satellite positioning system, combined with various sensors, tire data is recorded in real time to obtain the actual tire usage TKPH (tons per kilometer per hour). Based on the tire damage condition, usage conditions (speed, load, transportation route, etc.) are adjusted to control the TKPH value, aiming to improve tire service life, reduce costs, and ensure safety.

●Product high-endization

According to the 'Tire Industry Policy', the state encourages the development of safe, energy-efficient, and environmentally friendly high-performance radial tires, giant radial engineering tires, wide-section, flat radial passenger tires, and tubeless radial load-bearing tires. The state has listed radial tire technology as a priority area for high-tech industrialization development at present. Guided by the national industrial policy, the transformation and upgrading of China's tire industry are accelerating towards a higher-end pace.

Cutting non-profit capacity and operations and investing in emerging industries are actions being taken by major tire giants. In recent years, Michelin and Bridgestone have successively closed several tire factories around the world, with the closed plants generally having poor profitability. Giant all-steel radial engineering tires are high-end leading products with the highest added value, and their profitability is much higher than that of bias-ply engineering tires. To improve the profitability of their core business, enterprises should strengthen the proportion of high-value-added products in their tire business and steadily promote the proportion of giant all-steel radial engineering tires in their operations. If tire companies want to stand out in the market, the future development trend will inevitably focus on accelerating the integration of tire capacity, optimizing product structures, and emphasizing the high-end development of products in terms of product belt optimization to increase market competitiveness. The structural shortage of engineering tires provides an opportunity for the development of giant all-steel radial engineering tires in China. Moreover, with the deep implementation of the dual carbon strategy, high-end and green development will become an unchanging direction for the tire industry. For China's tire industry to move from a large country to a strong one, high-quality development and high-end brands are the inevitable path.

● Domestic substitution

Due to the sharp global demand for resources such as coal, iron ore, and copper, there is a severe shortage of large mining dump truck tires, leading to a situation of supply falling short of demand. Giant engineering radial tires are one of the most difficult varieties in the tire industry to develop on a large scale. They are characterized by high technology, high investment, high risk, and high returns. In the past few years, the engineering giant tire market was still dominated by foreign manufacturers. In recent years, Chinese tire enterprises have continuously improved their independent research and development capabilities and production levels. They have increased investment and expanded production capacity in construction machinery tires. Domestic giant all-steel radial tires have achieved better profitability due to their higher product performance, better cost and expense control. Domestic brand tires have expanded rapidly, and the market share of global leading enterprises has been gradually eroded by domestic tire enterprises. In terms of tire performance, domestic tires are more suitable for China's roads, and many leading enterprises' products can completely replace high-end products of foreign brands. In terms of tire product quality and performance, the gap between domestic tire enterprises and international brands is not large, and the latter will gradually be squeezed into a few high-end tire market areas. In the future, the globalization process of domestic tires will accelerate further, with broad market space. In terms of tire product services, domestic giant tire enterprises can accurately evaluate customer needs and provide customers with a one-stop service covering the entire life cycle of tires, including tire purchase, tire retreading and repair, and tire operation management. Compared with foreign brands, they have a more high-quality service system.

●Service model innovation

The concept of 'a new development pattern with the domestic big cycle as the main body and mutual promotion between domestic and international dual cycles' is gaining momentum. For this reason, domestic tire enterprises are leveraging both domestic and international markets and resources to continuously cultivate new advantages in participating in international cooperation and competition. At the same time, tire manufacturing enterprises will accurately understand customer needs in the future, further strengthen the integration of product manufacturing and after-sales (full life cycle of tires) services, upgrade pre-sale information surveying and demand assessment, enhance product customization levels, provide customers with one-stop tire operation management contracting services including purchase, retreading, repair, inspection, management, and use, and are committed to providing one-stop product solutions for downstream enterprises.

● The ongoing impact of the Russia-Ukraine situation on the tire industry

Affected by the Russia-Ukraine war, many foreign-funded tire companies have halted production or even withdrawn from the Russian market. Meanwhile, leading domestic tire companies are operating at full capacity and increasing their exports to Russia, which presents an opportunity for Chinese enterprises to capture foreign market shares. In the long run, due to Russia's economic and trade sanctions from countries such as the EU and the US, Russia, as the main export destination for domestic tire companies, will increase its dependence on Chinese industrial goods and boost imports from China in the future.

The global giant all-steel radial engineering tire industry is highly concentrated, with the top five players accounting for 92.3% of the market share based on production volume. Bridgestone, Michelin, and Goodyear rank first, second, and third in production with 94,000, 81,000, and 22,000 units respectively. Hainan Group ranks fourth in the world with a production volume of 20,000 giant all-steel radial engineering tires. At the same time, Hainan Group is the largest vertically integrated giant all-steel radial engineering tire manufacturer globally.

Top 5 Global Giant All-Steel Radial Engineering Tire Manufacturers (2024)

The competition landscape in China's giant all-steel radial engineering tire industry is relatively concentrated. Calculated by production volume, the top five players account for 92.0% of the market share. Hainan Group ranks first in China with a production volume of 20,000 units. The other top five players in the market are SAIL Tire, Xingyuan Group, Zhongce Rubber (which merged with Tianjin International United Tire in 2022), and Sanjiaotai Tire. In terms of enterprise type, Hainan Group is the largest vertically integrated giant all-steel radial engineering tire manufacturer in China.

Top 5 Chinese Giant All-Steel Radial Engineering Tire Manufacturers (2024)