Sailun Jinyu Group Co Ltd

Entering October, the fourth round of concentrated price hikes in China's tire industry this year has officially entered its implementation period. Leading tire companies including General Science Technology, Zhongce Rubber, Sailun Tire, and Linglong Tire have raised prices by 2% to 5% across all product categories such as all-steel tires, semi-steel tires, and off-the-road tires. This is already the fourth round of concentrated price-increase notices issued by the tire industry since March this year. In its price adjustment notice, General Science Technology pointed to raw materials as the reason for the increase, saying that prices of natural rubber, synthetic rubber, and carbon black have continued to rise sharply, causing tire manufacturing costs to climb rapidly. Raw materials account for more than 70% of tire production costs, with natural rubber, synthetic rubber, and carbon black together accounting for more than 60%. The simultaneous rise of these three major raw materials is the fundamental driver of this round of price increases. On carbon black, data from SunSirs shows that on October 1, the benchmark price of carbon black was reported at 11,692.86 yuan per ton, up about 59.74% year on year. On natural rubber, as of the end of the third quarter, the main Shanghai rubber futures contract closed above the 20,000 yuan per ton mark, while the average spot price in the domestic market over the same period was about 19,400 yuan per ton, up 31% year on year. On synthetic rubber, according to SunSirs data from October 1, the benchmark price of butadiene rubber was reported at 16,220 yuan per ton, up 39% year on year, and the benchmark price of styrene-butadiene rubber was reported at 16,175 yuan per ton, up about 36% year on year. According to data from Longzhong Information, as of September 29, the raw material cost index for semi-steel tires and the raw material cost index for all-steel tires both rose about 25% year on year. Zhongtai Securities believes that after cost disturbances ease, leading tire companies are expected to return to high year-on-year growth, but industry divergence will further intensify.

Sailun Tire released its 2026 interim report. Total operating revenue was 20.027 billion yuan, net profit attributable to the parent company was 2.16 billion yuan, and net cash inflow from operating activities was 1.033 billion yuan. The latest asset-liability ratio was 52.46 percent, up 1.22 percentage points from the previous quarter and up 2.03 percentage points from the same period last year. Gross margin was 26.99 percent, return on equity was 9.53 percent, and diluted earnings per share was 0.66 yuan. Total asset turnover was flat year on year. Inventory turnover was 1.91 times, down 0.05 times year on year. The number of shareholders was 73,400, and the top ten shareholders held 35.20 percent of total share capital.

Sailun Tire disclosed its semi-annual report on August 30. In the first half of 2026, it achieved operating revenue of 20.027 billion yuan, up 13.88% year on year. Net profit attributable to shareholders of the listed company was 2.16 billion yuan, up 17.97% year on year. Basic earnings per share were 0.66 yuan. The company plans to distribute a cash dividend of 1.5 yuan, tax included, for every 10 shares. During the reporting period, as global capacity release and market expansion continued to deepen, the company's tire production and sales volumes, along with domestic and overseas operating revenue, rose in tandem, all reaching their best levels for the same period in history.

Sailun Tire announced on August 30 that it plans to distribute a cash dividend of 0.15 yuan per share, tax included, to all shareholders. The total payout is expected to be 493 million yuan, accounting for 22.84% of the semi-annual net profit attributable to the parent company.

Sailun Tire released its 2026 interim report. First-half net profit attributable to the parent was 2.16 billion yuan, up 18% year on year. Operating revenue was 20.03 billion yuan, up 13.9% year on year. Net profit attributable to the parent excluding non-recurring items was 2.06 billion yuan, up 12.7% year on year. Net operating cash flow was 1.033 billion yuan, up 16.9% year on year. In the second quarter, operating revenue was 10.57 billion yuan, up 15.2% year on year, and net profit attributable to the parent was 1.1 billion yuan, up 39.3% year on year. As of the end of the second quarter, total assets were 51.359 billion yuan, up 9.8% from the end of the previous year, and net assets attributable to the parent were 22.662 billion yuan, up 4.9% from the end of the previous year. The company said there were no major changes in its business operations and it continued to focus on its core tire business.

Recently, institutional investors have been conducting intensive research on A-share listed companies in the automotive industry. From July 1 to 12 p.m. on August 5, a total of 39 companies received 61 rounds of research, with over 500 institutions participating. Among them, 30 are auto parts companies. Feilong Auto Parts, Lizhong Group, and Sailun Tire hosted 99, 65, and 53 institutions respectively. Overseas expansion and global layout were frequently mentioned. Lizhong Group's Mexican plant with an annual capacity of 3.6 million aluminum alloy wheels has entered full production. Sinotruk's export sales accounted for more than half of its total in the first half of the year. BAIC BluePark plans to start KD production layout in Southeast Asia in the second half of the year. In terms of new businesses, Zhaomin Technology has developed multiple new precision components for humanoid robots. Xiling Power's harmonic reducer production line has an annual capacity of about 100,000 units. Changan Automobile has accumulated over 5 million kilometers of testing for Level 3 autonomous driving. On August 4, the mandatory national standard 'Safety Requirements for Intelligent Connected Vehicle Automated Driving Systems' was released, and is planned to be implemented on July 1, 2027.