Doublestar narrows loss on stronger PCR tire performance

Shenzhen, China - Chinese tire maker Qingdao Doublestar has reported a year-on-year reduction in losses during the first six months of the year.

In a 9 July stock exchange filing, Doublestar said it expected net losses to come in between around Yuan45 million and Yuan60 million, compared to negative Yuan131 million last year.

During the period, the group said it continued to optimise its “channel structure and product structure” and overcame factors such as rising shipping costs.

And, despite “increasingly fierce competition” in the market, Doublestar said it achieved revenue growth, especially in overseas markets.

First-half revenue from overseas business increased by more than 10%, with sales from high value-added products growing 83% year-on-year.

Profitability of passenger car tires also continued to improve, helping Doublestar to reduce its overall net loss, the report further noted.

Meanwhile, the group said that losses incurred during the first half were in part due to “insufficient demand in the truck & bus tire market.”