On October 24, Linglong Tire o., Ltd. released its third quarter report. In the first three quarters, the company achieved operating income of 14.53 billion yuan, a year-on-year increase of 13.72%; net profit attributable to the parent company was 960 million yuan, an increase of 343.88%.
Among them, net profit in the third quarter was 399 million yuan, an increase of 278.01%. In the third quarter, 20.6073 million tires were produced and 19.3615 million tires were sold. Sales volume increased by 16.47% and sales revenue increased by 21.36%.
The company explained the price changes of its main products and raw materials.
1. Price changes of major products In the third quarter of 2023, due to changes in the market structure and adjustments to the internal product structure, the price of the company's tire products increased by 7.74% from the second quarter and by 4.20% from the third quarter of 2022.
2. Price changes of main raw materials. Affected by price fluctuations of major raw materials such as natural rubber and synthetic rubber, the company's comprehensive procurement costs of four major raw materials including natural rubber, synthetic rubber, carbon black, and steel cords in the third quarter increased by 1.41% compared with the second quarter and decreased by 10.47% year-on-year.
In the first three quarters, the company's capacity utilization rate increased, raw material prices fell, gross profit margin increased, and sales increased year-on-year, which comprehensively affected the main operating gross profit to increase year-on-year.