On October 29th, Sailun Tire disclosed its third quarter report for 2023. The report shows that the company achieved a revenue of 19.012 billion yuan from January to September 2023, a year-on-year increase of 13.72%; Realized a net profit attributable to the parent company of 2.025 billion yuan, a year-on-year increase of 90.14%. Among them, the operating revenue in the third quarter was 7.381 billion yuan, a year-on-year increase of 18.57%; Realized a net profit attributable to the parent company of 979 million yuan, a year-on-year increase of 179.73%, both reaching new historical highs for the same period, and the performance continued to exceed expectations.
In addition, the company's performance in multiple business data is impressive. The net operating cash flow in the third quarter reached RMB 1.106 billion, indicating abundant operating funds. The gross profit margin of sales is 27.78%, reaching the highest level in a single quarter in the past three years, and the profitability has significantly improved, leading the industry.
As a leading enterprise in the A-share tire industry, Sailun Tire keeps up with the industry's upward trend, continuously improving product quality and optimizing product structure. During the reporting period, thanks to the promotion of liquid gold tires and off road tires, as well as the increased global production capacity layout, the company's product strength, manufacturing power, and brand strength have been comprehensively improved.
Since the beginning of this year, the downstream automotive market in the tire industry has been thriving, with new energy vehicle production and sales reaching a record high, with a market share of 29.8%. The demand for high-performance tires has become increasingly strong. In this context, the liquid gold tires developed by the company have entered multiple segmented fields with excellent performance, steadily enhancing market competitiveness. In February of this year, the company launched four new series of liquid gold passenger car tires in offline stores in China, including new energy EV, luxury driving experience, urban driving, and ultra-high performance, with product sales continuously increasing. In terms of supporting equipment, liquid gold tires were successfully paired with multiple automotive brands such as Geely, Iveco, and VinFast in Vietnam in the third quarter of this year, and their product strength was widely recognized.
In the field of non highway tires with strong profitability, the company continuously optimizes its industrial structure, leverages the production and technological advantages of non highway tires. As of the end of the reporting period, the Qingdao factory's non highway tire project has undergone technical transformation. After the transformation is completed, the project will produce all giant non highway tires of 49 inches and above specifications. The completion of the project and its gradual production are expected to further enhance the company's overall competitiveness and increase profit margins. Meanwhile, with outstanding research and development capabilities and product advantages in the field of special tires, the company's special tire brand Maichi has successfully signed a long-term strategic cooperation agreement with Indonesia's largest mining company, greatly enhancing the company's international influence.
In addition, with the continuous improvement of the company's product competitiveness, the existing production capacity can no longer meet the demand of existing customer orders. Therefore, the company also disclosed the investment plan for the Cambodia annual production of 6 million semi steel radial tires project at the same time. After the completion of construction, the company's Cambodia factory will have the production capacity to produce 15 million semi steel radial tires and 1.65 million all steel radial tires per year, which is conducive to improving the company's product sales, operating income, and profits, and enhancing the company's overall competitiveness.
It is worth noting that since the third quarter, the company has focused on brand building, successfully logging into the prime time of CCTV and appearing at the "China Good Gift" brand ceremony of the Asian Games. The brand awareness and influence at home and abroad have been further enhanced. In the 2023 Top 500 Asian Brands list released at the Asian Brand Conference, Sailun Tire ranked 328th with a brand value of 80.572 billion yuan.
China Tire Business Network
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