Linglong’s net profit increases >300%

On 15 January, Linglong disclosed its estimated net profit for 2023. The tyre manufacturer reported net profit in 2023 of between 1.35 billion yuan (approximately £148 million; €173 million) and 1.61 billion yuan (about £176 million; €206 million), a year-on-year increase of 362 per cent to 451 per cent.

After excluding non-recurring gains and losses, Linglong’s estimated net profit is between 1.29 billion yuan (about £141 million; €165 million) and 1.49 billion yuan (approximately £163 million; €190 million).

Linglong believes that its sales volume in 2023 increased by 26.1 per cent year-on-year due to “the continued recovery of China’s domestic economic activities and the increase in overseas market demand”. The sales volume of passenger car tyres with higher gross profit increased by 28.34 per cent.

At the same time, Linglong said that in the past year, it continued to promote cost reduction and efficiency improvement, and continued to carry out structural adjustments in the OE market, achieving significant improvement in profitability.

In addition, the drop in raw material prices and shipping costs also benefited Linglong’s net profit to achieve substantial year-on-year growth.