Qingdao, Shandong – Doublestar estimates that it will have unaudited net loss between €33 million (230 million yuan) and €40 million in 2019. This is compared with €4 million net profit in 2018.
Such downturn was caused by factors such as facility upgrade, increased research and development expenses and exploration of new business strategies, said the company’s announcement on 23 January.
As of 2018 year end, Doublestar had closed down all of its old tire plants and phased out 90% of its outdated facilities, said the statement.
The company has upgraded, relocated or built facilities meeting the “Industry 4.0” standards for both truck and bus tires and passenger car tires.
The latest one, a €191 million relocation project for its Dongfeng factory, started its trial run at 2019 year end.
Doublestar expects its profitability to pick up within a short period of time as the new facilities come on stream, said the statement.