Shandong Linglong Tyre (601966) investor relations material

Executive summary

• Revenue grew 11.72% year-over-year to ¥24.64 billion, driven by increased sales volume.

• Net profit attributable to shareholders declined 21.88% year-over-year to ¥1.37 billion due to higher costs and expenses.

• Gross margin for the year was 16.93%, down 4.95 percentage points from the prior year.

• The company maintained a strong global presence, with 45.8% of assets located overseas.

• Board approved a cash dividend of ¥0.042 per share, with total annual cash dividends accounting for 30.68% of net profit.

Financial highlights

• Operating income: ¥24.64 billion, up 11.72% year-over-year.

• Net profit attributable to shareholders: ¥1.37 billion, down 21.88% year-over-year.

• Basic and diluted EPS: ¥0.94, down 21.67% year-over-year.

• Operating cash flow: ¥1.99 billion, up 2.67% year-over-year.

• Gross margin: 16.93%, down 4.95 percentage points year-over-year.

• R&D expenses: ¥978 million, representing 3.97% of revenue.

Outlook and guidance

• Strategic focus on global expansion, digital transformation, and green manufacturing.

• Targeting 1.6 billion tire sales and over ¥80 billion revenue by 2030.

• Plans to increase sustainable materials usage to 85% by 2028.

• Continued investment in high-end product lines and smart manufacturing.