Chinese listed tyre companies release third-quarter results

At the end of October, several listed companies, including Linglong, Triangle, Sailun, Aeolus, Jiangsu General, Guizhou Tyre (Advance), Doulestar and Sentury, released their operating results for the third quarter.

Linglong

In the third quarter, Linglong produced 17,015,900 tyres and sold 16,623,600 tyres, with a revenue of about 4.37 billion yuan (about 520 million pounds, 600 million euros) and a net profit of about 110 million yuan (about 13.1 million pounds, 15.22 million euros). Among them, Linglong relies on tyre products to obtain revenue of 4.29 billion yuan.

The tyre maker said the Chinese passenger car market had returned to normal in July-September, showing rapid growth. However, the commercial vehicle market remains relatively sluggish. Affected by this, Linglong’s product structure has changed, with a higher proportion of passenger car tyres with a lower unit price, while a decrease in the ratio of truck tyres with a higher unit price.

Triangle

(Source: Triangle)

Triangle produced 5.9658 million tyres and sold 5.9912 million tyres. It is worth noting that Triangle’s performance in the third quarter was very eye-catching compared to last year. The company achieved a revenue of 2.53 billion yuan (about 300 million pounds, 350 million euros), a year-on-year increase of 19.66 per cent; a net profit of 250 million yuan (about 29.77 million pounds, 34.59 million euros), an increase of 83.27 per cent.

The tyre maker explains that the prices of their products failed to keep pace with rising costs during the same period last year, resulting in lower profits. And this situation has improved significantly this year. Meanwhile, the increase in sales also positively impacted the revenue and net profit year-on-year increase.

Sailun

Sailun manufactured 10.229 million tyres and sold 12.1825 million tyres from July to September. During the reporting period, the company achieved a revenue of 6.22 billion yuan (about 740 million pounds, 860 million euros), a year-on-year increase of 35.52 per cent; a profit of 350 million yuan (about 41.68 million pounds, 48.43 million euros), an increase of 17.17 per cent. Compared with last year, Sailun also achieved good results in the first three quarters. From January to September, Sailun’s revenue was 16.72 billion yuan (about 1.99 billion pounds, 2.31 billion euros), an increase of 26.22 per cent over the same period last year; profit was 1.06 billion yuan (about 130 million pounds, 150 million euros), a rise of 6.24 per cent.

The tyre maker didn’t explain much about the growth in revenue and profit. The third-quarter report said the increase in revenue was due to “increased sales volume and unit price”, while the rise in profit was due to “increased revenue and gross margin”.

Aeolus

Aeolus produced 974,400 tyres, sold 1,048,600 tyres and achieved revenue of 1.35 billion yuan (about 160 million pounds, 190 million euros). The company’s tyre product sales revenue reached nearly 1.3 billion yuan. Aeolus’s net profit in the third quarter was about 52.49 million yuan (about 6.25 million pounds, 7.26 million euros). From January to September, the tyre company’s net profit was about 63.37 million yuan (about 7.55 million pounds, 8.77 million euros), a year-on-year increase of 531.54 per cent.

In other words, with a net profit of more than 10 million yuan in the year’s first half, Aeolus achieved good results in the third quarter. The tyre maker’s explanation for the increase in net profit is that Aeolus has optimised its market and product structure and improved its product profitability.

Jiangsu General

Jiangsu General’s tyre output and sales were 2.1335 million and 2.1533 million. The company earned 1.15 billion yuan (about 140 million pounds, 160 million euros), including 1.11 billion yuan in sales of tyre products. During the reporting period, Jiangsu General’s net profit attributable to shareholders of the listed company was 4.645 million yuan (about 553,000 pounds, 643,000 euros), a year-on-year increase of 560.95 per cent. After deducting non-recurring gains and losses, the company’s net profit was 1.194 million yuan (about 142,000 pounds, 165,000 euros), an increase of 115.17 per cent.

To sum up, Jiangsu General sold 2.1533 million tyres within three months and obtained a net profit of 1.194 million yuan (a year-on-year increase of 115.17 per cent) attributable to shareholders of the listed company after deducting non-recurring gains and losses.

Guizhou Tyre

Guizhou Tyre’s revenue was 2.3 billion yuan (about 270 million pounds, 320 million euros), an increase of 20.93 per cent; net profit reached 95.28 million yuan (about 11.35 million pounds, 13.18 million euros), an increase of 91.9 per cent over the third quarter of 2021. Guizhou Tyre said that the rise in profit was due to the increase in sales, while the sales price rose. Excluding non-recurring gains and losses, the tyre company’s net profit was 110 million yuan (about 13.1 million pounds, 15.22 million euros), a year-on-year increase of 161.52 per cent.

The third quarter report shows that Guizhou Tyre’s non-operating expenses during the reporting period increased by 21.92 million yuan (about 2.61 million pounds, 3.03 million euros) compared with the same period of the previous year, an increase of 363.02 per cent. It is reported that this expenditure is mainly due to the increase in losses caused by the scrapped fixed assets.

Doublestar

Doublestar was at a loss in the third quarter. The tyre company’s revenue was 1.1 billion yuan (about 130 million pounds, 150 million euros), a year-on-year increase of 31.24 per cent, and a loss of 160 million yuan (about 19.05 million pounds, 22.14 million euros). From January to September, Doublestar lost 460 million yuan (about 54.77 million pounds, 63.65 million euros). In the first three quarters of 2021, Doublestar’s loss was 150 million yuan, which means that the company’s losses in July-September 2022 exceeded the losses in January-September 2021.

It is worth noting that Doublestar did not explain the specific reasons for the enormous losses in the quarterly report. The tyre company just pointed out in general terms that since the beginning of this year, raw material prices have fluctuated sharply, shipping costs have remained high, and the company’s costs have increased, resulting in a net profit loss of 460 million yuan in the first three quarters of 2022.

Sentury

Sentury’s revenue reached 1.59 billion yuan (about 190 million pounds, 220 million euros), a year-on-year increase of 19.26 per cent; net profit was 180 million yuan (21.43 million pounds, 24.91 million euros), an increase of 4.73 per cent. From January to September, the tyre company’s revenue was 4.75 billion yuan (about 570 million pounds, 660 million euros), an increase of 22.9 per cent; net profit reached 660 million yuan (about 78.59 million pounds, 91.32 million euros), an increase of 15.56 per cent.

It is worth noting that Sentury’s non-recurring profit and loss during the reporting period was -84.98 million yuan (about 10.12 million pounds, 11.76 million euros).