Tire demand still has strong support. From 2005 to 2013, the output of passenger vehicles in China grew at a compound annual rate of 21%, the annual growth rate of commercial vehicles was 11%, and the vehicle ownership was nearly quadrupled. However, the per capita possession was still low, and there is still room for growth in the future. Continue to drive demand for tires. From 2005 to 2014, the turnover of highway freight increased by six times, and the rise of e-commerce stimulated the rapid development of logistics and transportation, and will also support the growth of tire demand. The fall in raw material prices has increased profitability. In 2014, the average price of natural rubber fell by 33% compared with 2013, and the price of synthetic rubber also fell at the same time. The two types of rubber accounted for 70% of the total cost of raw materials. Tire product prices fell by about 10% in 2014 compared to 2013. As a result, the spread between raw materials and finished products expanded, raising the gross margin of Aeolus. Aeolus shares management measures such as brand building, quality tracking, promotion of services, and e-commerce marketing, which make it more extensive and fine management and more effective for management. In the past three years, the overall operating rate of the tire industry 65% ​​-70% of the case, the company's capacity utilization has been maintained at more than 95%, is the highest level of the industry, while gross and net interest rates also rose year by year. The company's actual controlling party, China National Chemical Corporation, has another three tire companies. To solve the competition problem in the industry, it proposes to use Aeolus shares as a platform to integrate the remaining three tire companies before the end of 2017. At the same time, it has the possibility that China National Chemical Corporation will improve the company through international mergers and acquisitions and internal and external synergies. It is estimated that the company's operating revenue for 2014-2016 will reach 8.001 billion yuan, 8.316 billion yuan and 9.217 billion yuan, respectively, an increase of -6.29%, 3.93% and 10.84% ​​over the same period last year. The net profits attributable to shareholders of the parent company were 374 million yuan, 480 million yuan and 604 million yuan respectively, an increase of 19.41%, 28.44%, and 25.78% year-on-year.
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