Sailun Group (601058) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 15.15 billion, up 30.29% year-over-year, with net profit attributable to shareholders at RMB 2.15 billion, up 105.77% year-over-year.

• Tire production and sales volumes both increased over 30% year-over-year, hitting record highs for the period.

• The company advanced its global capacity layout, with ongoing projects in Cambodia, Mexico, and Indonesia.

• R&D investment and product innovation, especially in “liquid gold” tires, enhanced product competitiveness and brand value.

• No interim dividend or capital increase from reserves was proposed for the half-year.

Financial highlights

• Operating income: RMB 15.15 billion, up 30.29% year-over-year.

• Net profit attributable to shareholders: RMB 2.15 billion, up 105.77% year-over-year.

• Basic EPS: RMB 0.66, up 94.12% year-over-year.

• Operating cash flow: RMB 316.57 million, down 83.23% year-over-year due to increased payments for goods.

• Gross margin improved as sales and product mix shifted toward higher value products.

Outlook and guidance

• The company will continue to expand global production capacity, focusing on high-value and green products.

• R&D and ESG initiatives will be prioritized, with targets for sustainable materials and carbon reduction by 2030.

• The company expects continued growth in tire demand, especially from new energy vehicles and overseas markets.