Sailun’s revenue in 2023 was close to 26 billion yuan

In 2023, Sailun’s revenue reached 25.978 billion yuan (approximately £2.865 billion; €3.348 billion), a year-on-year increase of 18.61 per cent. In the past three years, Sailun’s revenue has achieved steady growth, from 17.998 billion yuan (approximately £1.985 billion; €2.319 billion) in 2021 to 21.902 billion yuan (approximately £2.415 billion; €2.822 billion) in 2022, and then last year’s 25.978 billion yuan. The annual growth is about 4 billion yuan.
What’s surprising is the net profit. The tyre manufacturer’s net profit last year reached 3.146 billion yuan (about £347 million; €405 million), with a profit-to-revenue ratio of 12 per cent. In 2022, Sailun’s net profit was 1.335 billion yuan. In other words, in the past year, the tyre manufacturer’s revenue increased by 4 billion yuan year-on-year, and its net profit increased by about 1.8 billion yuan compared with the previous year.
Sailun generates most of its revenue from its overseas markets. Export sales account for more than three-quarters of the company’s revenue. And the gross profit margin for export sales is as high as 30.78 per cent. For comparison, the gross profit margin of Sailun’s domestic sales is 18.84 per cent.
It is worth noting that a considerable proportion of Sailun’s export sales come from its domestic factories. In 2023, the combined revenue of Sailun Vietnam and CART factories was less than 10 billion yuan. Even if the revenue of the Cambodian factory is added, it is still far behind Sailun’s export turnover. At the same time, the revenue of the Shenyang factory was 12.326 billion yuan (approximately £1.359 billion; €1.588 billion), which is a relatively high number.
In its annual report, Sailun revealed its ambitions to increase production capacity. Once all existing projects are completed, the tyre manufacturer will have the capacity to produce 26 million TBR, 103 million PCR and 447,000 tons of OTR annually. Specifically, in 2023, Sailun’s increased production capacity was TBR 1.85 million (Qingdao factory 50,000, Shenyang factory 500,000, Vietnam factory 400,000, Cambodia factory 900,000), PCR 6 million (Dongying factory 500,000, Vietnam Factory 500,000, Cambodian factory 5 million), OTR 48,400 tons (Vietnam factory 10,000 tons, and the Weifang factory 41,400 tons, the Qingdao factory’s average production capacity decreased by 3,000 tons due to technical transformation). It is not difficult to see that among all its factories, the production capacity of the Cambodian factory has been dramatically improved in 2023.
OTR production capacity is one of the focuses of Sailun’s future development. In 2023, the technical transformation of the company’s Qingdao factory OTR project will be basically completed, and all giant OTR tyres of 49 inches and above will be produced. The OTR production capacity of the Weifang factory has been continuously improved. According to Sailun, after all transformations are completed, the Qingdao factory and the Weifang factory will increase their annual production capacity by 60,000 tons of giant tyres and 100,000 tons of OTR, respectively. The OTR production capacity of the Vietnam factory continues to grow, and the first giant engineering radial tyre has been rolled off the production line. The Dongjiakou factory in Qingdao, China, and the Indonesian factory also have plans to build OTR production lines.
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