Prinx Chengshan Holdings Limited reported mixed interim results for the six months ended 30 June 2026. Revenue inched up 1.4 % year on year to RMB 5.79 billion, driven by a 4.4 % increase in tyre sales volume to 14.8 million units. Gross profit rose 2.9 % to RMB 0.98 billion, lifting gross margin by 0.3 percentage point to 16.9 %.

Net profit attributable to shareholders dropped 18.5 % to RMB 0.41 billion, as operating profit fell 9.0 % to RMB 0.46 billion and adverse FX movements turned last year’s exchange gains into a RMB 27.54 million loss. EBITDA declined 5.6 % to RMB 0.75 billion, with EBITDA margin down one percentage point to 12.9 %.

By product, all-steel radial tyre revenue grew 5.1 % to RMB 3.32 billion (57.3 % of total), supported by 9.0 % volume growth, while semi-steel radial tyre revenue slipped 4.4 % to RMB 2.35 billion (40.7 %) amid lower average selling prices. Bias and off-the-road tyres contributed RMB 0.11 billion, up 30.8 %.

Channel performance diverged: domestic distributor sales jumped 18.1 % to RMB 1.20 billion, while international distributor sales fell 7.9 % to RMB 3.59 billion, reflecting FX headwinds and a shift toward own-brand focus. Direct sales to vehicle manufacturers surged 25.8 % to RMB 0.99 billion, buoyed by strong orders from commercial- and passenger-vehicle OEMs.

Total assets reached RMB 12.05 billion, with cash and equivalents (including restricted cash) at RMB 0.78 billion, down from RMB 1.10 billion at end-2025 as capex accelerated. Net cash used for investing amounted to RMB 0.62 billion, primarily for the Malaysian greenfield plant and Shandong OTR expansion. Capital commitments stood at RMB 1.63 billion.

The balance sheet showed bank borrowings of RMB 0.64 billion (83.5 % floating-rate), while the gearing ratio remained low at –1.4 %. An interim dividend was not declared; the RMB 0.28 billion final dividend for FY 2025 is payable.

Operationally, Shandong’s plant ran at 94.6 % (all-steel) and 91.8 % (semi-steel) utilisation; Thailand achieved 76.4 % and 91.9 %, respectively. The Malaysia facility, designed for 6 million semi-steel and 0.6 million all-steel tyres annually, is on track for first-tyre output in Q4 2026, with 34 % of its USD 299 million budget spent.

Management cited raw-material inflation, geopolitical shipping disruptions and FX volatility as key profit drags, but reiterated commitment to its strategies of cost leadership, efficiency, differentiation and global expansion. The group plans to deepen R&D in EV-oriented, high-end and green tyres, broaden domestic OEM and replacement penetration, and leverage its tri-base footprint in China, Thailand and forthcoming Malaysia to mitigate trade-barrier risks and enhance supply-chain resilience.