Sailun profits nearly halve as costs outpace price increases

Qingdao, China – Sailun Group reported a 46.9% year-on-year decline in third-quarter net profit, as rising raw-material prices and currency movements weighed on earnings.

Net profit attributable to shareholders fell to CNY552 million (€75 million), despite an 8.6% increase in revenue to CNY10.8 billion, according to the tire maker's 31 Oct financial report.

Sailun attributed the earnings decline mainly to a "rapid increase in raw-material prices," with increases in product selling prices lagging behind higher costs.

This was compounded by the depreciation of the US dollar and other foreign currencies against the Chinese yuan, the Chinese group said.

In a separate operating disclosure, Sailun reported a 14.3% year-on-year increase in sales volumes of 'self-manufactured tires' during the quarter.

However, average selling prices declined 4.9% year-on-year, reflecting changes in the group's product mix, among other factors.

Meanwhile, the combined purchase price of four key raw materials – natural rubber, synthetic rubber, carbon black and steel cord – increased 19.4% year-on-year and 3.4% quarter-on-quarter.

For the first nine months of 2026, Sailun reported an 11.96% increase in revenue to CNY31 billion, while net profit fell 5.6% to CNY2.7 billion.