Jiangsu General Science Tech

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.

General Technology released its 2026 interim report. Total operating revenue was 4.448 billion yuan, up 11.20% year on year. Net profit attributable to the parent company was 138 million yuan, up 114.84% year on year. Net cash inflow from operating activities was 841 million yuan, up 3,964.30% year on year. The company's asset-liability ratio was 57.71%, gross margin was 15.29%, ROE was 2.30%, and diluted earnings per share was 0.09 yuan, up 125.00% year on year. Total asset turnover was 0.30 times, and inventory turnover was 1.74 times. The number of shareholders was 52,400, and the top ten shareholders held 53.20% of the total share capital.

General Science Technology released its 2026 half-year report. In the first half, it achieved operating revenue of 4.448 billion yuan, up 11.2% year on year. Net profit attributable to shareholders of the listed company was 138 million yuan, up 114.84% year on year. Non-GAAP net profit was 137 million yuan, up 176.79% year on year. Facing a complex and challenging industry environment, the company advanced its international expansion, steadily released capacity at the second-phase project of its overseas base, and maintained strong production and sales. At the same time, it optimized the operating model of its domestic base, focused on demand for new energy vehicles, launched the Super Eucommia Tire series, released the Dual-Effect Wujin technology achievement, deepened digital and intelligent transformation, and carried out industry-academia-research cooperation with Tsinghua University and Lenovo Group.

General Science Technology released its 2026 interim report, showing first-half net profit attributable to the parent rose 114.8% year on year to 138 million yuan, while operating revenue reached 4.45 billion yuan, up 11.2% from a year earlier. In the second quarter, operating revenue was 2.31 billion yuan, up 23.0% year on year, and net profit attributable to the parent swung from a loss of 38.38 million yuan in the same period last year to a profit of 11.58 million yuan. As of the end of the second quarter, total assets stood at 14.347 billion yuan, down 5.1% from the end of the previous year, and net assets attributable to the parent were 6.011 billion yuan, down 3.5% from the end of the previous year. The company said that during the reporting period it accelerated its international expansion, steadily released high-quality production capacity at overseas manufacturing bases, achieved substantial growth in tire production and sales, improved gross margin, and saw net operating cash flow rise significantly to 841 million yuan, up 3964.3% year on year.

General Shares has released its earnings forecast, expecting to achieve an attributable net profit of 138 million yuan to 178 million yuan in the first half of 2026, representing a year-on-year increase of 114.66% to 176.88%. After deducting non-recurring items, attributable net profit is expected to be 137 million yuan to 177 million yuan, a year-on-year increase of 176.51% to 257.24%. The company stated that the profit growth is mainly due to the release of high-quality production capacity at overseas manufacturing bases, the ramp-up and efficiency gains of the Cambodia Phase II project, and a significant increase in tire production and sales, which drove up gross margins and improved the profitability of the main business. In the first quarter of 2026, General Shares achieved revenue of 2.137 billion yuan and an attributable net profit of 127 million yuan.