Qingdao, China – Doublestar posted €4 million (28 million yuan) net profit in 2018, down by 75% from 2017. Revenue dropped 6% to €544 million.
The company had €59 million net loss less non-recurring items in 2018, according to its annual report released in April.
Tire sales volume jumped 14% to 9.5 million unit in 2018, meanwhile the business’ gross profit margin stood at 8.4% last year, down from 20% in 2017.
Doublestar linked the decline in profit partly to market headwinds such as trade conflicts and China’s domestic slowdown.
However, the closure of its outdated plant in Shiyan, Hubei province in Q3 2018, and new project investments also played a role, said its annual report.
In 2018, Doublestar inaugurated a tire plant and a machinery plant in Qingdao, and teamed up with Hyundai logistics affiliate Movex for a JV in intelligent logistics and industrial robotics.
The tire maker also joined forces with two Chinese machinery firms to set up a speciality rubber maker for military purposes in November.
Doublestar ‘will explore the feasibility of an overseas plant in answer to China’s Belt and Road Initiative,’ said the annual report, without giving further details.
The company had considered a factory in Kazakhstan in 2015 but later cancelled the project.