Sailun Group (601058) H2 2024 earnings summary

Executive summary

• Achieved record revenue of ¥31.80 billion in 2024, up 22.42% year-over-year; net profit attributable to shareholders reached ¥4.06 billion, up 31.42% year-over-year.

• Tire production and sales hit historical highs, driven by global expansion, R&D, and digital transformation.

• Continued to enhance product competitiveness with innovations like the “Liquid Gold” tire technology and expanded high-end product lines.

• Strengthened global manufacturing and sales network, with new capacity in Cambodia, Mexico, and Indonesia.

Financial highlights

• Revenue: ¥31.80 billion, up 22.42% year-over-year; net profit attributable to shareholders: ¥4.06 billion, up 31.42%.

• Gross margin for tire business at 27.71%, up 0.06 percentage points year-over-year.

• Operating cash flow: ¥2.29 billion, down 56.92% year-over-year due to increased cash outflows for purchases.

• Basic EPS: ¥1.26, up 24.75% year-over-year; weighted average ROE: 22.81%.

• Total assets: ¥40.28 billion, up 19.45% from previous year; net assets attributable to shareholders: ¥19.51 billion, up 31.35%.

Outlook and guidance

• Focus on product competitiveness, digital transformation, and global capacity expansion in 2025.

• Plans to further penetrate domestic and international markets, enhance supply chain efficiency, and accelerate green manufacturing.

• Strategic emphasis on R&D, intelligent manufacturing, and brand internationalization.