QINGDAO, China—Qingdao Doublestar Tyre Co. Ltd.'s sales growth slowed in the first quarter after the company generated double-digit growth in fiscal 2016.
Doublestar—which is poised to take over a 42 percent ownership stake in South Korea's Kumho Tire Co. Ltd.—reported 1-percent growth in the quarter for both revenue and net profit.
The company declined to comment on the flat revenue, at $155 million. However, other Chinese tire makers have reported that rising costs for natural rubber and other raw materials are leading to lower margins.
In fiscal 2016, Doublestar's net profit jumped 56 percent to $13.8 million on 65 percent rise in sales to $710 million.
Last year Doublestar's domestic sales more than doubled, accounting for 70 percent of its total revenue. A new business referred to as "materials" posted $122 million in sales in 2016, although the company declined to provide further information.