Sailun’s revenue exceeds 20 billion yuan, ranked #1 Chinese listed tyre firm

In 2022, Sailun’s revenue was 21.9 billion yuan (approximately £2.55 billion; €2.89 billion), a year-on-year increase of 21.69 per cent. Sailun became the first listed Chinese tyre company with revenue exceeding 20 billion yuan. At the same time, the company’s revenue in 2022 surpassed Linglong, becoming the number one listed tyre company in China. During the reporting period, Sailun produced 43.2078 million tyres, sold 43.903 million tyres, and realized a net profit of 1.33 billion yuan (about £150 million; €180 million).

Data show that in 2022, Sailun’s revenue of approximately 17.05 billion yuan (about £1.98 billion; €2.24 billion) came from non-Chinese markets, accounting for more than 75% of the tyre manufacturer’s total revenue. Sailun’s revenue in overseas markets has grown substantially in the past year, an increase of 31.1% compared to 2021. In contrast, revenue in China’s domestic market grew by 7.44% year-on-year.

It is worth noting that most of Sailun’s net profit comes from Sailun (Vietnam). The revenue of this overseas branch in 2022 was 7.45 billion yuan (about £860 million; €980 million), but it achieved a net profit of 1.09 billion yuan (about £130 million; €140 million). As shown above, the revenue and net profit of Sailun Group is 21.9 billion yuan and 1.33 billion yuan. In other words, if the data of the Vietnam factory is removed, the revenue of the rest of Sailun’s business sector in 2022 was 14.45 billion yuan (approximately £1.68 billion; €1.9 billion), and the net profit was 240 million yuan (approximately £28 million; €32 million). Compared with Sailun (Vietnam), the data of the Cambodian company is slightly inferior. In 2022, Sailun (Cambodia) had a revenue of 820 million yuan (about £95 million; €110 million) and a net profit of 30.08 million yuan (about £3.5 million pounds; €4 million). The profits of Sailun’s factories in mainland China are relatively low. Among them, the Shenyang Manufacturing Center has a revenue of 11.45 billion yuan (approximately £1.33 billion; €1.5 billion), a profit of 230 million yuan (approximately £27 million; €30 million); the revenue of the Dongying Branch was 3.06 billion yuan (about £350 million; €400 million), and the profit was 83.496 million yuan (about £9.7 million; €11 million).

Positively related to the substantial increase in Sailun’s overseas revenue, in 2022, the production capacity of the tyre manufacturer’s overseas factories was further increased. It is reported that the company’s Cambodian semi-steel radial tyres production line is put into operation; the annual production of 1.65 million all-steel radial tyres is ready to put into operation. The OTR project, with a yearly output of 50,000 tons in the Vietnam manufacturing base, has been basically completed, and the projects with a annual production of 1 million all-steel radial tyres and 3 million semi-steel radial tyres are under continuous construction.

International tyre factory performance

Sailun’s Qingdao factory can produce 3.2 million all-steel radial tyres, 10 million semi-steel radial tyres and 56,000 tons of OTR tyres annually. The plant’s under-construction capacity includes 300,000 all-steel radial tyres and 4,000 tons of OTR tyres. Tyrepress China has previously reported that the Sailun Qingdao plant is preparing to renovate the OTR production line and will produce tyres above 49 inches (including 49 inches).

The Dongying factory has a production capacity of 24 million semi-steel radial tyres and is building a production line with an annual output of 3 million. The Shenyang factory is currently capable of producing 4.5 million all-steel radial tyres per year, and is building a production line of 500,000 all-steel radial tyres. The Weifang plant can produce 1.6 million semi-steel radial tyres and 8,600 tons of OTR tyres annually. The factory is building the OTR tyre production line with an annual output of 8,300 tons.

The current production capacity of the Vietnam factory is 1.6 million all-steel radial tyres, 12 million semi-steel radial tyres and 60,000 tons of OTR tyres. Currently, the capacity under construction of this overseas factory includes 1 million all-steel radial tyres, 4 million semi-steel radial tyres and 40,000 tons of OTR tyres. Sailun’s joint venture factory ACTR in Vietnam can produce 2.65 million all-steel radial tyres annually.

The Cambodian factory, another overseas manufacturing base of Sailun, can currently produce 4 million semi-steel radial tyres per year. According to the data given by Sailun, the production capacity of the Cambodian factory under construction is 5 million semi-steel radial tyres and 1.65 million all-steel radial tyres.

It is worth noting that all the production capacity under construction in Sailun is planned to be completed in 2023. If the corresponding production capacity is fully put into production, Sailun’s performance in 2023 may increase significantly year-on-year. In addition, in the information currently disclosed by Sailun, there is no relevant data about the Dongjiakou factory in Qingdao.