YANTAI, China — Shandong Linglong Tire Co. Ltd. posted a 49-percent jump in net income in fiscal 2016 on 20-percent higher sales revenue and is forecasting continued, albeit slower, growth in fiscal 2017.
Net income rose to $146.5 million on revenue of $1.52 billion, the company reported recently.
The company is aiming for a 10-percent rise in revenue and 4-percent gain in net profit in 2017.
It's worth noting that the company's revenue in 2015 was down 15 percent from fiscal 2014, against a backdrop of China's slowed economy and market headwinds.
Moving up to higher-end original equipment supply has helped the company's performance, according to the firm's annual report. Last August it became a global supplier of Volkswagen A.G., the first one among Chinese tire makers.
With overseas markets accounting for 54 percent of Linglong's sales in 2016, the company is mulling two overseas sites, besides the Thai plant it opened in 2015, in Europe and the U.S. The location of the first one will be determined within the year.
"Rising land costs and declining demographic dividend is making increasing China's tire makers expand overseas, avoiding the impact of global trade protectionism," the report said.
In 2016, Linglong produced 43 million unit tires and sold 42 million, with 2017 production pegged at 48 million.