Doublestar doubles net profit despite tire sector woes

Despite the downturn in the Chinese tire sector, Doublestar has posted a surge in earnings and sales for the first half of 2016. Net profit increased 106 percent year-on-year to $8.15 million, while revenue jumped 62 percent to $369 million.

Domestic sales, taking up two thirds of the company’s total revenue, gained 82 percent compared with 2015. Overseas sales were up 17 percent.

An industry leader in “smart” manufacturing, the company started its first phase, high-performance radial truck and bus tire project at its new site in Qingdao in July.

Doublestar plans to raise up to $135 million in secondary placement to finance its passenger car tire project an annual capacity of 6 million units and machinery project with a capacity of 220 units, including 180 units for curing machines.

With a construction period of 24 months, the projects are predicted to generate $324 million and $68 million in annual sales, respectively, when in operation.

Doublestar also launched Starmonkey, an online-to-offline e-commerce portal for aftermarket services, and it has been transforming its machinery business from product-oriented to service-oriented, said the eport.