Tire maker Nankang Rubber Tire Corp (南港輪胎) yesterday said that it aims to post annual revenue growth of 20 percent this year, with a push to increase sales in China, as well as at home.
The company’s honorary president, Lin Shur-pu (林學圃), told investors that Nankang’s sales in China would rise 100 percent this year from the 132 million yuan (US$21.5 million) last year.
The company plans to open 50 stores and five flagship shops at home, with 200 stores and 20 flagship shops in China this year, he said.
Sales to Europe, the firm’s largest market with 40 percent of its total revenue, will rise by a monthly NT$300 million, next month after two clients complete their structural reforms, Lin said.
Nankang also aims to increase its gross margin to 19.9 percent this year from 15 percent last year by selling motorcycle and scooter tires, Lin said, adding that gross margin for these tires is between 30 percent to 40 percent.
The firm plans to build a new Chinese factory to make the higher-margin tires this year, Lin said.
The current factory in Jiangsu Province’s Zhangjiagang makes 24,000 tires a year, but cannot deliver the required 36 million tires a year, Lin said.
Nangang reported revenue of NT$13.16 billion last year, down 2.61 percent from 2012, due to lower orders from Europe. Net income for last year was NT$490 million, or NT$0.59 per share, up 118.75 percent from a year before.
The company also plans to submit its construction project application to the local authorities on 31,263m2 of land in Taipei’s Nangang District (南港) on March 19, Lin said.
Under the plans, the company will construct seven buildings: two for residential and five for business and office use.