Thailand factory supports most of Linglong’s profits in 2023

Linglong’s revenue in 2023 exceeded 20 billion yuan, and its net profit was close to 1.4 billion yuan. The tyre manufacturer produced 79.117 million tyres throughout the year, an increase of 20.4 per cent year-on-year. Among them, semi-steel tyres increased by 19.20 per cent, all-steel tyres increased by 30.79 per cent, and bias tyres decreased by 6.19 per cent.

It is worth noting that the proportion of domestic and overseas sales in Linglong’s revenue is relatively balanced. The proportion of domestic sales to total revenue is appropriately higher.

Compared with other companies with overseas factories, Linglong’s proportion of overseas business is not outstanding. Tyrepress China put the data of Linglong and Sailun together and found that Sailun’s overseas revenue is about 10 billion yuan higher than that of Linglong. Sailun’s overseas business accounts for about 75 per cent of total revenue, while Linglong’s is less than 50 per cent. The gross profit margin in overseas markets is generally higher than that in the domestic market. Linglong’s Thailand factory’s revenue and net profit in 2023 were 4.451 billion yuan and 914 million yuan. For comparison, Linglong’s annual revenue and net profit were 20 billion yuan and 1.4 billion yuan.

In the past few years, several Chinese tyre manufacturers have aggressively established production bases in Southeast Asia. In comparison, Linglong’s Thailand factory’s annual production capacity is not outstanding, at 13 million PCR and 2.2 million TBR. With the gradual growth in use of the Serbian factory, Linglong’s overseas business is likely to achieve substantial growth in the next one to two years. One step the company has take in support of this aim is the opening Linglong-branded downstream retail stores in Serbia.

Linglong International Europe, the parent company responsible for operating the Serbian factory, had revenue of 220 million yuan in 2023. The plant obtained trial licenses for TBR and PCR in May and December 2023. Its TBR production line is designed to have an annual production capacity of 1.6 million units and currently produces 800,000 tyres annually. The designed annual production capacity of PCR is 12 million, and the production capacity under construction is expected to be completed in 2025.