Recently, Sailun Tyres released a performance forecast, expecting to reach a net profit of approximately 3.1 billion yuan in 2023.
Sailun Tyre Expects to Achieve Profitability for 2023
This representing a year-on-year increase of around 132.77 per cent.
The announcement explains the reasons for the changes in performance as follows: In 2023, the recovery in domestic tire market demand was evident, and the impact of destocking by foreign dealers on the company’s production and operations gradually diminished in the second half of the year. With the release of the company’s production capacity and continuous improvement in capacity utilization rates, the production and sales volumes of the company’s TBR, PCR, and Specialty tyres reached record highs. Additionally, the gross profit margin of these products substantially increased year-on-year. The company, adhering to its mission of “Make Great Tyres,” focused on long-term investment in research and development and technological innovation in the field of Specialty tyres. Products such as mining truck tyres, agricultural tyres, and giant OTR tyres gained increasing recognition from customers. The revenue growth and gross profit margin levels of these products exceeded those of TBR and PCR tyres in this period.
The third-quarter report for Sailun tyre in 2023 reveals that the company’s main revenue reached 19.012 billion yuan, marking a 13.72 per cent year-on-year increase. The net profit attributable to the parent company was 2.025 billion yuan, reflecting a substantial 90.14 per cent year-on-year growth. The adjusted net profit amounted to 2.099 billion yuan, indicating a significant 94.07 per cent year-on-year increase. Specifically, in the third quarter of 2023, the company’s quarterly main revenue was 7.381 billion yuan, representing an 18.57 per cent year-on-year increase. The net profit for the quarter was 980 million yuan, experiencing an impressive 179.73 per cent year-on-year surge. The nondeductible net profit for the quarter was 965 million yuan, showing a notable 152.76 per cent year-on-year increase. The company’s debt ratio stands at 58.9 per cent, with investment income at -66.9151 million yuan, financial expenses at 272 million yuan, and a gross profit margin of 25.46 per cent.