Yantai, Shandong – Linglong Tire's first half net profit increased 38% year-on-year to €92 million (725 million yuan), on 15% higher revenue at €1.05 billion.
The company's Thai plant, at the sixth year of its eight-year tax exemption period, generated €60 million net profit on €287 million revenue, said the tire maker in half year report released in August.
According to China’s National Bureau of Statistics, the country’s total tire production in the first six months of the year dropped 1% year-on-year to 404 million units.
China’s vehicle production and sales during the period also dropped to 12.1 million and 12.3 million units respectively, down by 14% and 12% from the first of 2018.
Against such downturn, Linglong produced 29 million and sold 28 million unit tires, both up 8% from 2018.
A range of overseas markets such as the US, Europe, the Middle East and South America recorded double-digit growth.
Following the groundbreaking of its second overseas site in Serbia this March, Linglong’s fourth China site in Jingmen, Hubei is slated to start operation by September.
The company expects to bring its total annual designed capacity to 90 million units by 2020, said the half year report.