Wanli Tire seeks IPO to add new manufacturing site in Malaysia

Guangzhou, China – Chinese tire maker Wanli Tire is seeking to raise Yuan2 billion (€258 million) through an initial public offering on the Shenzhen Stock Exchange's main board, with proceeds earmarked for overseas expansion and capacity growth.

In a 24 June statement, Shenzhen Stock Exchange said its review of the company's IPO application had been accepted.

In its draft IPO prospectus, Wanli said the funds will be invested in five projects, led by a high-performance green tire production base in Malaysia, which is set to receive Yuan930 million.

Furthermore, the tire maker plans to allocate Yuan310 million to upgrade its R&D centre, and Yuan180 million each to its new manufacturing plant in Cambodia (ERJ report) and an expansion of its Conghua production base. (ERJ report).

A sum of Yuan400 million has also been earmarked for working capital.

The investments are intended to "advance the strategic layout of overseas bases, strengthen production intelligence, [and] enhance economies of scale and operational efficiency," said Wanli.

They will also "optimise the product structure, improve core competitiveness, and enhance brand influence in domestic and international markets."

The group said the Cambodia and Malaysia projects form part of its strategy to accelerate overseas capacity and create an integrated system covering "global R&D, global manufacturing and global sales."

Wanli did not provide further details about the Malaysian project but said it planned to establish a subsidiary in which it will hold a 70% stake.

According to the financial figures disclosed in the IPO documents, Wanli increased its revenue 16% year-on-year in 2025 to Yuan70.3 billion, while net profit rose marginally to Yuan419 million from Yuan417 million.