China holds a crucial position in the global tire industry. As the world’s largest tire producer and consumer, the domestic tire market is continuously expanding, and we should pay attention to its highly profitable niche markets. In 2024, my country’s tire production reached 1.187 billion units, a year-on-year increase of 1.46%, achieving growth again on the basis of 2023 and setting a new historical record. In recent years, with the continuous growth of my country’s automobile production and sales, the tire OEM market has also expanded significantly. According to data from Guanyan Tianxia, the market size of OEM tires in my country reached 77.57 billion yuan in 2024. Automobile tire consumption demand is relatively inelastic; the OEM market follows changes in vehicle production, while the aftermarket follows changes in vehicle mileage or vehicle ownership. According to statistics from the Ministry of Public Security, as of 2024, China’s vehicle ownership reached 353 million vehicles; according to Guanyan Tianxia data, the size of my country’s automobile tire aftermarket in 2024 was 109.876 billion yuan.
Besides passenger car tires, off-road tires (OTR) are also an important part of the global tire market. With its high certainty and considerable profits, it has become a rapidly developing segment of the tire industry. In recent years, benefiting from the continuous increase in global mining exploration and development expenditures and the continuous increase in infrastructure investment, the demand for off-road tires has maintained rapid growth. According to Guanyan Tianxia data, the global off-road tire (OTR) market size was US$26.6 billion in 2022, and is expected to reach US$40 billion in 2028, with a compound annual growth rate of 7.5% from 2022 to 2028.
Beijing Stock Exchange Taikaiying is a company focusing on the global mining and construction tire market, specializing in the design, research and development, sales and service of mining and construction tires.
Its downstream customers include globally renowned mining companies and equipment manufacturers, such as XCMG Group, Sany Heavy Industry, Zoomlion, Liebherr, and Manitowoc, among many other world-renowned construction machinery manufacturers; it has also won the recognition of top international mining companies such as Rio Tinto, Glencore, BHP Billiton, Vale, and Zijin Mining. This week, the Kaiyuan Chemical New Materials sector on the Beijing Stock Exchange saw a weekly change of +4.24%. Among the secondary sectors of the Kaiyuan Chemical New Materials sector on the Beijing Stock Exchange, the Metal New Materials sector performed exceptionally well, with a weekly change of +35.71%, far exceeding other sectors. The weekly changes of other sectors were as follows: Textile Manufacturing (+2.54%), Rubber and Plastics Products (+2.45%), Professional and Technical Services (+1.82%), Non-metallic Materials (+1.59%), Chemical Products (+0.22%), and Battery Materials (-1.59%). In terms of individual stocks, among the chemical new materials sector listed on the Beijing Stock Exchange this week, the top gainers and losers were Tianli Composite Materials (+117.21%), Tiangong Shares (+10.84%), Kelong New Materials (+10.34%), Huitong New Materials (+8.12%), Xinweiling (+6.67%), and Jinhua New Materials (+6.61%). Furthermore, BTR and its controlling shareholder plan to participate in the merger and reorganization of Shanshan Group. BTR plans to form a consortium with its controlling shareholder, China Baoan Group (Baoan Group), to jointly participate in the recruitment of investors for the substantive merger and reorganization of Shanshan Group and its wholly-owned subsidiary, Ningbo Pengze; shareholder Baoan Group has submitted registration materials and paid a due diligence deposit of 50 million yuan. Kelon New Materials has made smooth progress on several new product developments. In its latest investor relations activity record, the company disclosed that in terms of product R&D and innovation, it continues to optimize the performance of its hydraulic hose series products and actively promotes the R&D of new products such as hoses and sealing products配套 (supporting) computing power and data center liquid cooling systems. These products have already passed the qualified supplier certification of key customers. Furthermore, the company has entered the market with sealing products配套 (supporting) low-altitude economic drones, which have already been supplied in small batches and have also passed the qualified supplier certification of key customers. However, the market also faces risks such as changes in the macroeconomic environment, market competition, and data statistical errors.
