Shandong Linglong Tyre (601966) Q2 2026 earnings summary

Executive summary

• Revenue increased 7.8% year-over-year to RMB 12.73 billion, but net profit attributable to shareholders dropped 88.13% to RMB 101 million due to margin compression and non-recurring items.

• Cash flow from operating activities surged to RMB 1.32 billion, up 3,088.64% year-over-year, reflecting improved collections and working capital management.

• The company will distribute a cash dividend of RMB 0.068 per share, totaling RMB 99.39 million, representing 97.98% of net profit for the period.

• Strategic focus on global expansion, R&D, and high-end product launches, with continued investment in sustainability and digital transformation.

Financial highlights

• Operating income: RMB 12.73 billion, up 7.8% year-over-year.

• Net profit attributable to shareholders: RMB 101 million, down 88.13% year-over-year.

• Operating cash flow: RMB 1.32 billion, up 3,088.64% year-over-year.

• Basic and diluted EPS: RMB 0.07, down 87.93% year-over-year.

• Gross margin and profitability declined due to higher raw material and logistics costs.

Outlook and guidance

• Management expects continued pressure from global trade barriers, raw material price volatility, and geopolitical risks.

• Strategic initiatives include further global market penetration, product innovation, and digital transformation to drive long-term growth.