Sailun’s Profits Doubled and Overseas Companies Contributed More Than 60%

Sailun Tire released the third quarterly report of 2019 on October 31, showing that in the first three quarters, the operation revenue was 11.327 Billion Yuan, increasing 10.14% year-on-year; the net profits attributable to share-holders of the listed company were 951 Million Yuan, increasing 83.84% year-on-year; and the net profits attributable to shareholders of the company after deduction of non-recurring profits and losses were 934 Million Yuan, increasing 97.28% year-on-year. According to the report, the total assets at the end of the report period were 18.068 Billion Yuan, a growth of 18.18% than that at the end of the previous year.

In the first three quarters, Sailun Group manufactured 28.6098 million tires in total, increasing 6.70% year-on-year and sold 29.2184 million tires, increasing 7.04% year-on-year. In the overall downturn of the domestic tire industry, Sailun Tire achieved growth in production and sales against the trend and its profitability improved continuously.

The overseas production capacity is conductive to effectively circumvent the trade barriers and highlight the profitability, for example, the subsidiary in Vietnam contributed more than 60% of the profits attributable to the parent company. Since the all-steel tire project in Vietnam, a joint venture with Cooper Tire with a capacity of 2.4 million tires per year, started construction in the first half year of 2019, Sailun’s profitability of the overseas production capacity would be expected to rise continuously with the launch of this new capacity.