Aeolus Raises Funds for Production Expansion

On December 31, Aeolus Tyres announced that the company's application for a targeted share issue had been approved by the China Securities Regulatory Commission (CSRC). A total of 219 million shares will be issued, accounting for no more than 30% of Aeolus' total equity before the placement, and the amount of funds raised will not exceed 1.1 billion yuan (160 million dollars).

The net proceeds will be fully invested in a project to upgrade and expand the production of large-size tires, with a total investment of 1.464 billion yuan (210 million dollars). It is expected that with the investment, Aeolus will increase the production of this type of tire by 20,000 units per year, bringing an additional 1.563 billion yuan (220 million dollars) in annual revenue to the company.

The first tire released under the project is the Aeolus AL516 in size 45/65 R45 for large forklifts, which was manufactured at the Jiaozuo (Henan) plant in September 2025.

Large-size tires, which are mainly used in the mining industry, are a technologically complex and high-margin product, and the new project is expected to enable Aeolus to eliminate production "bottlenecks" and strengthen its product lineup in this segment. Meanwhile, through the issuance of shares, the company intends to reduce its financial costs. In the long term, Aeolus aims to maintain its leading position in the large-size tire market, the company said.