Doublestar doubled the loss

On March 28, Qingdao Doublestar Tire Industrial released its 2024 financial report, stating that sales volumes reached 4.335 billion yuan (600 million dollars), which is 7.6% less than the previous year. The net loss increased by 102.1% to 356 million yuan (49 million dollars).

Doublestar was founded in 1980 and is the controlling shareholder of Korean Kumho, as well as a tire supplier for numerous automotive companies such as FAW, Dongfeng, Sinotruk, BAIC, BYD, Geely, Chery, Great Wall, BMW, Mercedes-Benz, Audi, GM, Nissan, and Hyundai.

The main shareholder of Doublestar is Qingdao City Construction Investment (Group) Ltd., which owns 75.99% of the company's shares. The media notes that the actual management of the business is carried out by the State-owned Assets Supervision and Administration Commission of Qingdao Province.

In 2024, it was announced that Doublestar intends to carry out a large-scale asset restructuring to address the issue of horizontal competition with Kumho. It was reported that Doublestar plans to issue securities, and the proceeds will go towards purchasing 45% of the shares of the Korean tire manufacturer. On October 18, 2024, the plan was approved at an extraordinary meeting of shareholders, and on November 9, it received approval from the Shenzhen Stock Exchange. If the reorganization is successful, Doublestar is expected to achieve resource integration, increased competitiveness, optimized product offerings, and expanded market share.