Qingdao, China – Despite the downturn in the Chinese tire sector, Doublestar has posted surge in earnings and sales for the first half of 2016: net profit was up by 106 percent year-on-year to 54 million yuan (€7.3 million), while revenue jumped 62 percent to €330 million.
Domestic sales, taking up two thirds of the company’s total revenue, gained 82 percent compared with 2015. Overseas sales was up 17 percent.
An industry leader in 's'mart' manufacturing, the company started up its first-phase high-performance radial truck and bus tire project at its new site in Qingdao this July.
Doublestar plans to raise up to €121 million in secondary placement to finance its passenger car tire project with 6-million-unit annual capacity and machinery project with 220 unit annual capacity, including 180 unit for curing machines, at the new site.
Both with a construction period of 24 months, the two projects are predicted to generate €290 million and €61 million annual sales respectively when in operation.
Doublestar also launched Starmonkey, an online-to-offline e-commerce portal for aftermarket services, and has been transforming its machinery business from product-oriented to service-oriented, said the H1 report.