International China Rubber Co., Ltd. reported operating losses in the first three quarters, insisting on sustainable innovation

　　In a recent update from Taiwan's International Zhongce Rubber Group Company, the company disclosed its operational performance for the third quarter of 2022. The cumulative total revenue for the first three quarters of this year amounted to 13.428 billion New Taiwan Dollars, reflecting a 24.35% decrease compared to the same period last year, which saw revenue at 17.75 billion New Taiwan Dollars. The cumulative Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at 1.44 billion New Taiwan Dollars, witnessing a 50.73% decline year-on-year. The net profit attributable to the parent company was negative, indicating a loss of 332 million New Taiwan Dollars, contrasting with a profit of 758 million New Taiwan Dollars during the corresponding period last year.

　　When addressing the impact of the global economic environment on business performance, the company observed that, despite a moderate recovery in global new car sales in 2023 following the pandemic, various factors such as inflationary pressure, U.S. interest rate hikes, and subdued economic recovery in China have affected downstream industries. Persistent destocking efforts, coupled with the challenges posed by a high-interest environment leading to significantly increased operational costs, have resulted in new car sales growth falling below expectations. The company highlighted the relatively stable performance in the Taiwan market, while the U.S. market faced challenges due to weakened demand for commercial vehicle tire replacements, competitive pressures from low-priced imports in the Indian market, and the impact of factors such as volatile coal tar prices and weakened tire demand in China. Consequently, the carbon black business has experienced multiple pressures, leading to a substantial decline in overall performance.

　　International Zhongce Rubber Group, known for being one of the global pioneers in utilizing waste tire pyrolysis oil (TPO) for carbon black production, implemented strategic measures to transition TPO usage from fuel to raw material oil. The Chongqing plant initiated this shift in March by substituting TPO with natural gas as fuel, and subsequently, from May to July, the Linyuan plant entirely adopted gas fuel. This innovative approach involves utilizing TPO as a raw material, employing technical adjustments to reintegrate it into tire materials, thereby achieving the effective utilization of recycled oil materials.

　　With the rapid ascendance of electric vehicles, there has been a substantial surge in demand for lithium batteries. The International Zhongce Rubber Group's research and development efforts have focused on a conductive additive, carbon black, which contributes to sustaining the efficiency of battery charge and discharge cycles. Moreover, the widespread adoption of electric vehicles is anticipated to elevate energy storage demand, and the expanding use of renewable energy is poised to trigger a surge in power grid upgrades, providing favorable conditions for the expansion of the wire and cable market. The International Zhongce Rubber Group's sales volume of carbon black used in cables continues to exhibit steady growth.

　　In a proactive move to enhance its technological portfolio, the International Zhongce Rubber Group has successfully secured patent protection for the PAHs rapid analysis method and EREBOS reactor technology in Taiwan. The company is currently in the process of patent applications for these technologies in mainland China and the United States. Additionally, two EREBOS post-modification technologies are undergoing patent applications in Taiwan. The company remains committed to reinforcing quality and processes, adopting a market-oriented approach, and undertaking research and development initiatives for high-tech products to gain a differentiating edge in the fiercely competitive carbon black market.