Recently, Sailun Tire released its 2023 annual report, in which the company achieved operating income of 25.978 billion yuan, a year-on-year increase of 18.61%, a net profit attributable to the parent company of 3.091 billion yuan, a year-on-year increase of 132.07%, and a net profit of 3.146 billion yuan, a year-on-year increase of 135.64%. The net cash flow from operating activities was 5.313 billion yuan, a year-on-year increase of 141.63%, and the core indicators of various performance reached a record high.
In addition, the company also disclosed the first quarter report of 2024, achieving an operating income of 7.296 billion yuan, a year-on-year increase of 35.84%, and a net profit attributable to the parent company of 1.034 billion yuan, a year-on-year increase of 191.19%, achieving a good start to 2024.
The performance data that is significantly ahead of the same industry proves that Sailun Tire has achieved remarkable results in terms of global layout, product strength improvement, brand building and other aspects in recent years, and is accelerating its advancement to the world's leading tire company and seeking greater growth space.
The expansion of production capacity drove the growth of performance, and the globalization strategy continued to advance
In 2023, the overall environment of the tire industry will improve, the production capacity of Sailun tires will be released, and the production and sales of semi-steel tires, all-steel tires and off-highway tires will reach a record high. The company's annual tire output was 58,635,400 pieces, a year-on-year increase of 35.71%, and the sales volume was 55,786,300 pieces, a year-on-year increase of 27.07%.
At the same time, the profitability of Sailun increased significantly, and the gross profit margin of tire products reached 27.84%, an increase of 9.43 percentage points year-on-year.
In addition, Sailun's export revenue reached 19.265 billion yuan, a year-on-year increase of 12.99%, accounting for 74.16% of the total operating income, and the gross profit margin was 30.78%, much higher than that of domestic business. The increase in volume and profit in overseas markets was due to the continuous promotion of the globalization strategy.
In 2023, the average annual production capacity of Sailun overseas semi-steel tires will increase by 5.5 million, the average annual production capacity of all-steel tires will increase by 1.3 million, and the average annual production capacity of off-highway tires will increase by 10,000 tons.
As the earliest tire company in China to build overseas factories, Sailun's factories in Vietnam and Cambodia have increased their production capacity, providing a strong guarantee for performance growth. In 2023, the net profit attributable to the parent company of Sailun Vietnam will be 1.594 billion yuan, a year-on-year increase of 46.88%, and the Cambodian subsidiary CART TARE will achieve a net profit attributable to the parent company of 565 million yuan, a year-on-year increase of more than 17 times.
Since October 2023, the company's Cambodian factory has increased its production capacity twice, and after the completion of the project construction, the Cambodian factory will have an annual production capacity of 21 million semi-steel radial tires and 1.65 million all-steel radial tires.
In December 2023, the company plans to establish a joint venture in Mexico to invest in the construction of a project with an annual output of 6 million semi-steel radial tires.
In March 2024, the company plans to invest in the construction of a project with an annual output of 3.6 million radial tires and 37,000 tons of off-highway tires in Indonesia.
Up to now, the company plans to build a total annual production capacity of 26 million all-steel radial tires, 103 million semi-steel radial tires and 447,000 tons of off-road tires.
Build a global competitive advantage in product strength
Product strength is another weapon for Sailun Tire to compete in the global tire market, and the quality of its core products has been comparable to that of world-class brands.
In 2023, the company's liquid gold tires will be widely praised in the supporting market, which can help the supporting models achieve better performance. The company won the "Technological Innovation Contribution Award" of Dongfeng Huashen, and the liquid gold tire was exclusively equipped with its newly developed high-end express ECVT model.
The company also won the "Best Quality Award of the Year" from Yutong Group, and the liquid gold tires were successfully matched with its light commercial vehicles and new energy heavy trucks. Liquid Gold Tire has also become the tire for all models of Sany Truck, and won the title of "2023 Technology Innovation Supplier" of Sany Commercial Vehicle.
In January 2024, the company's liquid gold tire technology won the special award of the jury of the "China Automobile Festival" due to its representativeness and leadership, as well as its special significance to promoting the development of China's automobile industry, becoming the only auto parts company to receive this honor.
In addition, the company has long adhered to R&D investment and technological innovation in the field of off-highway tires, and has the production technology of a full range of 49-63-inch giant tire products, breaking the monopoly of foreign giants, gradually narrowing the gap with international head brands, and has been widely recognized by customers at home and abroad.
Build a world-class tire brand
Over the years, the cost-effective advantage is one of the main competitiveness of China's own brands in the global market. Sailun Tire is narrowing the premium gap with the world's first-class brands by accelerating brand building.
In 2023, the company will empower brand building through media placement, participation in international exhibitions, sponsorship of sports events, social welfare, etc., and continuously enhance the influence of the company's brand in the global market.
In terms of media promotion, Sailun Tire is committed to accurately reaching consumers, and its brand awareness and reputation have been significantly improved. During the reporting period, the company's products successfully landed on CCTV primetime, the company and China Central Radio and Television launched a special program "Exciting Arena and Rotation Quartet", and in 2024, the company named the prime-time news column of Phoenix Satellite TV, which was disseminated globally through platform channels such as Phoenix Satellite TV's financial media.
In addition, the company enhances its brand influence by participating in international industry exhibitions and helping sports events. In March 2024, the company entered the list of FIA racing tire suppliers and can provide racing tires for many of its international professional automobile events, and the company's tires have now become the official designated tires for the 2024 Shell Helix FIA Formula 4 China Championship.
In 2023, the company ranked 116th in the list of "China's 500 Most Valuable Brands" and 331st in the list of "Top 500 Asian Brands" with a brand value of 80.572 billion yuan. The company was also shortlisted in the "2023 Global Most Valuable Tire Brand List" released by Brand Finance, ranking 11th in the tire industry, becoming the most valuable tire brand in China.
According to the top 75 global tires released by the authoritative media "Tire Business" last year, Sailun Group ranked 12th, a new high. It is foreseeable that with the continuous release of the company's production capacity, the continuous optimization of product structure, and the continuous investment and expansion and deepening of the global layout, Sailun has obvious advantages in strategic layout and will have a broader space for development!