Aeolus Tyre Co.,Ltd. has stated in response to investor inquiries that it currently holds a 10% equity stake in Palatin and manages a further 90% stake under a trusteeship arrangement. The company outlined a three-pronged strategy to enhance Palatin's future profitability.
First, the strategy involves optimizing the product mix and expanding sales volume. Palatin is currently constrained by high production costs, making it sensitive to pricing. The primary objective is to maximize sales of its top-tier products to dilute fixed costs through economies of scale.
Second, Aeolus plans to deepen synergistic cooperation with Palatin. This will involve leveraging mutual strengths in areas such as sales, research and development, and procurement. By integrating resources and sharing systems, the aim is to boost Palatin's sales capabilities while simultaneously reducing operational expenses.
Third, the company will implement cost-reduction initiatives. Acknowledging that certain elements of the current cost structure are relatively inflexible, making significant short-term cost savings challenging, Aeolus intends to achieve cost reductions through measures such as equipment upgrades and adjustments to production capacity structure.
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