Profits of listed Chinese tyre companies rise sharply

A number of Chinese tyre manufacturers have stated that their net profits significantly increased year-on-year in 2023. Doublestar is one of the few tyre companies that was still losing money. Jiangsu General turned losses into profits. In terms of net profit alone, Sailun’s 3.1 billion yuan suggest the company gradually widened the gap between itself and Linglong. Currently, ZC Rubber has not officially disclosed its operating data for 2023. Therefore, it is not yet possible to judge who is in the leading position in terms of net profit between Sailun and ZC Rubber.

Doublestar expects to continue its losses from the previous year in 2023, with losses ranging from 160 million yuan to 185 million yuan. The company emphasised that the number of losses has decreased compared with 2022 and attributed the losses to “restricted overseas expansion in Europe and the United States, which has affected truck and bus tyre orders”. Doublestar believes that its performance will further improve once the construction of the Cambodian factory is completed.

Jiangsu General has turned a loss into a profit, and its net profit in 2023 is expected to be between 200 million yuan and 270 million yuan, a year-on-year increase of 1079 per cent to 1492 per cent. If non-recurring gains and losses are deducted, the increase in net profit is expected to be between 2523 per cent and 3330 per cent. Factories in Thailand and Cambodia have helped the tyre manufacturer achieve significant growth in tyre production and sales in the past year.

Compared with the same period last year, Aeolus’ net profit in 2023 is expected to increase by 255 million yuan to 295 million yuan. Its net profit is expected to reach between 340 million yuan and 380 million yuan, a year-on-year increase of more than 300 per cent. If non-recurring gains and losses are deducted, the company expects net profit to increase by more than 500 per cent year-on-year.

Guizhou Tyre expects net profit in 2023 to be between 790 million yuan and 850 million yuan, an increase of 84.24 – 98.23 per cent over the same period last year. After deducting non-recurring gains and losses, its net profit is expected to be between 775 million yuan and 835 million yuan.

Prinx Chengshan expects net profit to be between 980 million yuan and 1.18 billion yuan. The tyre manufacturer sold 25 million tyres in 2023. In 2022, its tyre sales were 18.5 million units.

Sentury’s net profit ranged from 1.3 billion yuan to 1.42 billion yuan, an increase of 62.33 – 77.31 per cent over the same period last year. After deducting non-recurring gains and losses, the company’s net profit was between 1.25 billion yuan and 1.37 billion yuan, an increase of 40.73 – 54.24 per cent.

Triangle’s net profit is expected to be between 1.347 billion yuan and 1.447 billion yuan, a year-on-year increase of 82.61 per cent to 96.17 per cent. After deducting non-recurring gains and losses, net profit is expected to be between 1.147 billion yuan and 1.227 billion yuan.

Linglong expects net profit to be between 1.35 billion yuan and 1.61 billion yuan, an increase of 1.058 billion yuan to 1.318 billion yuan compared with 2022, a year-on-year increase of 362 per cent to 451 per cent.

Sailun’s expected operating income is around 26 billion yuan, a year-on-year increase of 18.71 per cent. During the same period, the company achieved a net profit of about 3.1 billion yuan, an increase of 1.768 billion yuan compared with 2022.