RONCHENG/SHANDONG, China — Buoyed by double-digit growth in international sales, Prinx Chengshan Tire Co. Ltd. reported 8.2% higher revenue in 2022 versus 2021 despite little, if any, increase in unit volume sold.
Fiscal 2022 revenue increased to $1.23 billion, based on sales of approximately 18.5 million tires.
Gross profit rose 12.6% to $176 million, or 14.3% of revenue, while profit attributable to shareholders (net income) jumped 42.5% to $59.2 million.
Recapping fiscal 2022, Prinx Chengshan said it achieved "outstanding performance" in the international replacement market, with revenue up 31.9% over 2021. The company did not disclose a domestic/export split in the sales.
Looking forward to 2023, the company said the lifting of pandemic prevention and control policies in China in December 2022 should help the Chinese economy rebound rapidly, but overall market demand is expected to remain weak in light of global economic downturn, inflation and continued global supply-chain issues exacerbated by Russia's military incursion in Ukraine.
Overseas orders for semi-steel radials have gradually recovered since the fourth quarter of 2022, and the domestic replacement market is expected to pick up with the increase in residents' outbound activities, Prinx Chengshan said.
The Roncheng-based company goes to market with four brands: Austone, Chengshan, Fortune and Prinx. The firm is represented in North America by Prinx Chengshan Tire North America Inc. of Los Angeles.