Sailun Group anticipating 133% profit growth for 2023

Driven by recovery within the domestic tyre market and the declining impact of destocking measures internationally in the second half of the year, Sailun Group expects to achieve a net profit of RMB 3.1 billion (£341.1 million) for 2023. This figure represents a year-on-year increase of some 132.77 per cent. Improving capacity utilisation rate pushed production and sales volumes within the company’s consumer, commercial and specialty tyre segments to “record highs,” with the gross profit margin of these products “substantially” increasing year-on-year.

Specialty tyres have proven an area of particular strength for Sailun Group, with long-term investments in R&D helping products such as mining truck tyres, agricultural tyres, and giant OTR tyres gain increasing recognition from customers. The company reports that revenue growth and gross profit margin levels for these products exceeded that of TBR and PCR tyres in 2023.

Financial results to 30 September 2023

Sailun Group’s revenue for the first nine months of 2023 amounted to RMB 19.012 billion (£2.1 billion), a 13.72 per cent year-on-year increase. The net profit attributable to the parent company was RMB 2.025 billion (£222.8 million), reflecting a 90.14 per cent year-on-year growth. The adjusted net profit amounted to RMB 2.099 billion (£230.9 million), a 94.07 per cent year-on-year increase.

Company revenue was RMB 7.381 billion (£812.1 million) in Q3 2023, representing an 18.57 per cent year-on-year increase. The net profit for the quarter was RMB 980 million yuan (£107.8 million), up 179.73 per cent year-on-year. The non-deductible net profit for the quarter was RMB 965 million yuan (£106.2 million), reflecting a 152.76 per cent year-on-year increase. The company’s debt ratio stands at 58.9 per cent, with investment income at RMB -66.9151 million yuan (-£7.4 million), financial expenses at RMB 272 million (£29.9 million), and a gross profit margin of 25.46 per cent.