Shandong Linglong Tyre (601966) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 5.70 billion, up 12.92% year-over-year, while net profit attributable to shareholders fell 22.78% to RMB 340.58 million.

• Excluding non-recurring items, net profit dropped 34.60% year-over-year, mainly due to higher raw material costs impacting gross margin.

Financial highlights

• Operating cash flow was negative RMB 318.21 million, a sharp decline from positive RMB 501.81 million in Q1 2024.

• Basic and diluted EPS were RMB 0.23, down 23.33% year-over-year.

• Total assets increased 2.96% to RMB 48.48 billion; equity attributable to shareholders rose 2.14% to RMB 22.15 billion.

• Non-recurring gains totaled RMB 60.85 million, including government subsidies and investment returns.

Outlook and guidance

• Management attributes profit decline to significant year-over-year increases in raw material procurement costs, which reduced gross profit.