Sailun Group (601058) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 20.03 billion, up 13.88% year-over-year, with net profit attributable to shareholders at RMB 2.16 billion, up 17.97% year-over-year.

• Gross margin and net margin improved, with basic EPS at RMB 0.66, up 17.86% year-over-year.

• Cash flow from operations increased 16.89% year-over-year to RMB 1.03 billion.

• The board proposes a cash dividend of RMB 0.15 per share (tax included) for the interim period.

Financial highlights

• Operating income: RMB 20.03 billion (+13.88% YoY); net profit: RMB 2.16 billion (+17.97% YoY).

• Operating cash flow: RMB 1.03 billion (+16.89% YoY).

• Total assets: RMB 51.36 billion (+9.81% from year-end 2025); net assets attributable to shareholders: RMB 22.66 billion (+4.85%).

• Gross margin and net margin improved; basic and diluted EPS: RMB 0.66 (+17.86% YoY).

• Non-recurring profit: RMB 102.07 million.

Outlook and guidance

• The company expects continued growth driven by global capacity expansion and product innovation.

• Focus remains on high-end, green, and intelligent tire development, with ongoing investment in overseas production bases.

• Management highlights risks from raw material price volatility, trade barriers, and currency fluctuations.