Sailun Tire: Expected to achieve profitability for 2023 with a year-on-year net profit growth of around 132.77%.
Recently，Sailun Tires released a performance forecast, expecting to reach a net profit of approximately 3.1 billion yuan in 2023, representing a year-on-year increase of around 132.77%.
The announcement explains the reasons for the changes in performance as follows:
In 2023, the recovery in domestic tire market demand was evident, and the impact of destocking by foreign dealers on the company's production and operations gradually diminished in the second half of the year. With the release of the company's production capacity and continuous improvement in capacity utilization rates, the production and sales volumes of the company's TBR, PCR, and Specialty tires reached record highs. Additionally, the gross profit margin of these products substantially increased year-on-year. The company, adhering to its mission of "Make Great Tires," focused on long-term investment in research and development and technological innovation in the field of Specialty tires. Products such as mining truck tires, agricultural tires, and giant OTR tires gained increasing recognition from customers. The revenue growth and gross profit margin levels of these products exceeded those of TBR and PCR tires in this period.
The third-quarter report for Sailun Tire in 2023 reveals that the company's main revenue reached 19.012 billion yuan, marking a 13.72% year-on-year increase. The net profit attributable to the parent company was 2.025 billion yuan, reflecting a substantial 90.14% year-on-year growth. The adjusted net profit amounted to 2.099 billion yuan, indicating a significant 94.07% year-on-year increase. Specifically, in the third quarter of 2023, the company's quarterly main revenue was 7.381 billion yuan, representing an 18.57% year-on-year increase. The net profit for the quarter was 980 million yuan, experiencing an impressive 179.73% year-on-year surge. The non-deductible net profit for the quarter was 965 million yuan, showing a notable 152.76% year-on-year increase. The company's debt ratio stands at 58.9%, with investment income at -66.9151 million yuan, financial expenses at 272 million yuan, and a gross profit margin of 25.46%.