News on November 15, recently, Linglong Tire held its third quarter 2024 results briefing meeting. Chairman and President Wang Feng and Vice President and Chief Financial Officer Lu Xiaoyan jointly answered many questions of investors 'concern. According to Wang Feng, in the first three quarters of this year, Linglong Tire's revenue in the North American market accounted for approximately 18% of the company's total revenue, demonstrating the initial results of the company's internationalization strategy. He emphasized that in the future, Linglong will more actively explore overseas markets and speed up the site selection of its third overseas production base to flexibly respond to potential tariff policy changes.
At present, Linglong Tire has two major overseas production bases in Thailand and Serbia. Among them, the Serbian base, as the first tire production base of China companies in Europe, has significant first-mover advantages. In the company's "7+5" long-term production capacity plan, the remaining two production bases in China will start construction in due course based on capacity utilization. As for the overseas third base, the company is currently conducting in-depth research and inspections around the world in order to find the best layout point.
The financial report data is eye-catching, showing that Linglong Tire's revenue in the first three quarters of this year achieved a year-on-year growth of 9.77%, and its net profit increased significantly by 78.39%. In this regard, Lu Xiaoyan explained that this is mainly due to the company's continued product upgrade strategy this year and the product structure adjustment in retail and supporting markets outside China. At the same time, the production capacity of Serbia's production base was gradually released, and product sales in the first three quarters increased by approximately 11% year-on-year, with sales of high-margin passenger car tires growing particularly significantly. In addition, the company also received anti-dumping tax rebates in the third quarter, further boosting earnings growth.
According to the Carbon Black Industry Network, Linglong Tire has also made significant progress in cost control and efficiency improvement, and its profitability has been further enhanced. The Serbian base is currently in a stage of rapid increase in production capacity and has achieved profitability in the third quarter. It is expected that its output and profitability will increase significantly in 2025, injecting strong impetus into the company's future development.
