On the evening of April 27, Linglong Tire (601966) announced its first quarter report for 2026 and annual report for 2025. Its performance has attracted widespread attention from the market.
Let’s first look at the first quarter report of 2026. The company’s operating income was 6.06 billion yuan, a year-on-year increase of 6.3%.
However, the net profit attributable to the parent company was only 16.89 million yuan, a year-on-year decrease of 95.0%; deducting the non-attributable net profit was a loss of 26.9 million yuan, a year-on-year decrease of 109.6%.
The main reason for the company’s profit decline is exchange rate changes, which resulted in an exchange loss of up to 267 million yuan this quarter.
This performance was beyond the expectations of many investors. On platforms such as Snowball, some netizens said “I can’t watch it”, and some even said “Isn’t it too much to lower the limit tomorrow?”
The 2025 annual report released on the same day showed that during the reporting period, the company achieved operating income of 24.642 billion yuan, a year-on-year increase of 11.7%; it achieved net profit attributable to the parent company
Profit was 1.369 billion yuan, a year-on-year decrease of 21.9%; net profit after deducting non-ownership was 1.197 billion yuan, a year-on-year decrease of 14.75%; net operating cash flow was 1.989 billion yuan, a year-on-year increase of 2.7%.
Linglong Tire said that starting from the beginning of 2025, the weather in natural rubber production areas has normalized and the supply tension has slightly improved. Due to oversupply of synthetic rubber, carbon black and other chemical raw materials, the cost pressure on the tire raw material side has eased in 2025 relative to 2024.
During the reporting period, the company’s business was overall stable and its main operating conditions were good.
The company is committed to the design, development, manufacturing, sales and service of tires, covering many fields such as passenger cars, commercial vehicles and engineering machinery.
Despite facing challenges within the industry, the company has maintained continued business growth through optimized product structure and technological innovation.
However, in terms of expenses, Linglong Tire’s sales expenses in 2025 will reach 862 million yuan, a significant increase of 33% from 647 million yuan in 2024, mainly due to the year-on-year increase in advertising expenses and sales and service fees.
At the same time, administrative expenses also increased by 18% year-on-year, due to the year-on-year increase in consulting service fees, employee compensation expenses, and fixed asset depreciation expenses.
In addition, the gross profit margin of Linglong tire products in 2025 will be 16.93%, a decrease of 4.95% from the previous year.
This series of data shows that although Linglong Tire has increased its operating income, it faces greater pressure in terms of profits and cost control.
In the future, the company needs to further optimize its business strategies, cope with exchange rate fluctuations, reduce costs, and increase product gross profit margins to improve overall performance and gain a firm foothold in the fierce market competition.
