Wanli updates IPO prospectus as Malaysia investment gathers pace

Guangzhou, China – Wanli Tire has updated its application for an initial public offering and listing on the Shenzhen Stock Exchange (ERJ report), as it advances a major new production investment in Malaysia.”

In an updated IPO prospectus published 21 Sept, Wanli outlined further details of its overseas expansion programme, including a 36-month construction schedule for its ongoing €280 million tire plant in Selangor, Malaysia. (ERJ report)

The facility is designed to produce 5 million passenger car tires and 1.2 million truck & bus tires annually, with Wanli allocating Yuan930 million of the IPO proceeds to the project.

Once fully operational, the Malaysian plant is expected to generate average annual sales of Yuan2.17 billion (€285 million) and net profit of Yuan250.5 million, according to the prospectus.

Wanli's IPO plans also include allocating Yuan310 million to upgrade its R&D centre, and Yuan180 million each to its Cambodia manufacturing project (ERJ report) and the second phase of its Conghua expansion, which will add capacity for 6 million passenger car tires a year (ERJ report).

The latest IPO prospectus also detailed Wanli’s continued growth in its core tire operations.

In 2025, the Chinese tire maker recorded nearly Yuan7 billion in tire sales, up 16.8% from Yuan6 billion in 2024.

Semi-steel passenger car tire volumes increased 22% to 29.27 million units, from 23.98 million the year before, while sales increased 17.4% year-on-year to Yuan4.87 billion.

Truck and bus tire volumes rose 11.4% to 3.02 million units, with sales increasing 15.4% to Yuan2.11 billion.

Wanli linked the passenger tire growth partly to the commissioning of 6 million units of additional capacity at its Conghua site in December 2024.

It also cited increased supplies to vehicle makers including BYD, Changan Automobile, Dongfeng Motor and BAIC, alongside continued expansion in overseas markets.

Overall, Wanli said it produced 33.03 million tires during 2025, against nominal capacity of 33 million units, with capacity utilisation running at just over 100%.

The prospectus also showed continued pressure on profitability, with the company's tire gross margin declining to 14.18% in 2025, from 15.03% in 2024 and 17.60% in 2023.

Wanli linked the decline to factors including raw-material price movements, changes in customer mix and increased market competition.