Shandong Linglong Tyre (601966) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥10.38 billion, up 12.37% year-over-year, with net profit attributable to shareholders at ¥925 million, a 64.95% increase year-over-year.

• Gross margin and profitability improved, driven by higher sales volume and product mix optimization.

• The company maintained its industry-leading position in tire production, especially in passenger and light truck radial tires.

• Strategic global expansion continued, with the Serbia plant entering the capacity release phase, supporting overseas growth.

• Dividend payout of ¥1.00 per 10 shares (pre-tax) proposed for Q2, representing 30.22% of Q2 net profit.

Financial highlights

• Operating income: ¥10.38 billion, up 12.37% year-over-year.

• Net profit attributable to shareholders: ¥925 million, up 64.95% year-over-year.

• Net profit after non-recurring items: ¥928 million, up 85.88% year-over-year.

• Basic and diluted EPS: ¥0.63, up 65.79% year-over-year.

• Operating cash flow: ¥835 million, a significant turnaround from negative ¥135 million in H1 2023.

Outlook and guidance

• The company will continue to advance its “7+5” global manufacturing strategy and digital transformation.

• Focus remains on high-end product development, new energy vehicle tire market, and global market expansion.

• Management expects continued growth in both domestic and international markets, leveraging strong R&D and brand strength.