Shandong Linglong Tyre Co., Ltd. designs, develops, manufactures, sells, and services tires in the People's Republic of China. Its product lines include passenger and light truck radial tires, truck and bus radial tires, and off-the-road tires, used in passenger cars, commercial vehicles, and engineering machinery. The company sells to approximately 173 countries across Europe, the Middle East, the Americas, the Asia Pacific, and Africa. Its brands include LINGLONG, ATLAS, LEAO, CROSSWIND, GREENMAX, and EVOLUXX. Founded in 1975, the company is based in Zhaoyuan, the People's Republic of China.
Why is Shandong Linglong Tyre Co Ltd (601966.CG) moving?
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Linglong's profit crushed by FX and rubber costs, buybacks and price hikes offset
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H1 profit collapses on FX loss First-half 2026 net profit fell 87% to 110 million yuan, and non-GAAP profit plunged 99.3% to 5.55 million yuan. The main cause was a 342 million yuan exchange loss as the yuan strengthened, versus a 691 million yuan gain a year earlier. This weak result weighs on the stock.
The profit collapse is the core negative force driving the stock down.
Rubber costs surge, squeezing margins Natural rubber prices hit a nine-year high, up over 32% this year, while carbon black and synthetic rubber also jumped. Raw materials are over 70% of tire costs, and these increases have outpaced selling prices, pressuring Linglong's gross margin. This cost squeeze hurts earnings.
Rising raw material costs are a major ongoing headwind for profitability.
Tire price hikes help offset costs Linglong joined the fourth round of industry-wide tire price increases this year, raising all product categories by 2% to 5%. These hikes aim to pass rising raw material costs to customers, which could support revenue and margins if demand holds.
Price increases are a positive offset to cost inflation and support earnings.
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Buybacks signal confidence Linglong repurchased 5.54 million shares for about 60 million yuan by September 30, up from 1.85 million shares in July. Buybacks reduce shares outstanding and show management's belief that the stock is undervalued, offering some price support.
Share repurchases are a positive capital action that can support the stock price.
Shanghai Rubber Main Contract Hits Nine-Year High, Up Over 32% This Year
The main natural rubber contract on the Shanghai Futures Exchange closed at 20,645 yuan per tonne on October 9, up 2.89% on the day, with an intraday high of 20,775 yuan per tonne, marking a nine-year price high and a cumulative gain of more than 32% this year. Pan Shengjie, head of chemical research at Galaxy Futures, said the current strength is the combined result of weather expectations, reduced imports, higher synthetic rubber costs, spot prices following the rally, and a low warehouse receipt environment. The ANRPC's August report forecast global natural rubber production of 15.039 million tonnes in 2026 and consumption of 15.356 million tonnes, leaving a supply-demand gap of about 317,000 tonnes, compared with a gap of 77,000 tonnes forecast in the July report. Downstream tyre makers are under pressure. Sailun Tire, Linglong Tire and Triangle Tire all flagged the impact of rising raw material prices in their interim reports. Triangle Tire disclosed that its combined purchase prices for natural rubber, synthetic rubber, steel cord and carbon black rose 10.31% year on year and 13.36% quarter on quarter in the second quarter. Wei Yu, a senior analyst at CITIC Futures, noted that the three main raw materials for all-steel tyres account for about 70% of tyre production costs, and cost increases have continued to outpace selling prices, squeezing industry-wide gross margins. The market outlook remains bullish, but the margin for error has narrowed.
RUBBER · Supply · Positive Natural rubber hit a nine-year high on reduced imports, higher synthetic rubber costs, and a widening ANRPC supply-demand gap.
601163.CG · Supply · Negative Triangle Tire disclosed combined raw material purchase prices rose 10.31% YoY and 13.36% QoQ, squeezing margins.
601058.CG · Supply · Negative Sailun Tire flagged the impact of rising raw material prices in its interim report as natural rubber costs surge.
601966.CG · Supply · Negative Linglong Tire flagged the impact of rising raw material prices in its interim report amid the rubber rally.
Linglong Tire Repurchases 5.54 Million Shares for About 60 Million Yuan
Linglong Tire announced on October 8 that as of September 30, 2026, the company had repurchased 5.54 million shares, accounting for 0.38% of total share capital, with a total repurchase amount of about 60 million yuan and a repurchase price range of 10.16 yuan to 11.5 yuan per share. In the first half of 2026, Linglong Tire achieved revenue of 12.733 billion yuan and net profit attributable to the parent of 101 million yuan.
Fourth round of tire industry price hikes this year takes effect, with all-category products raised by 2% to 5%
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.
601500.CG · Pricing · Positive General Science Technology is a named leader raising prices 2%-5% across all categories, citing raw-material cost inflation
601058.CG · Pricing · Positive Sailun Tire is named among leading tire makers implementing a 2%-5% all-category price hike, lifting its product prices
601966.CG · Pricing · Positive Linglong Tire is named among leading tire companies implementing the 2%-5% all-category price increase
603049.CG · Pricing · Positive Zhongce Rubber is named among leading tire makers raising prices 2%-5% across all product categories
Linglong Tire's 2026 interim net profit was 101 million yuan, down 88.13% year-on-year
Linglong Tire released its 2026 interim report. Total operating revenue was 12.733 billion yuan, and net profit attributable to the parent company was 101 million yuan, a decrease of 753 million yuan from the same period last year, down 88.13% year-on-year. Net cash inflow from operating activities was 1.316 billion yuan. The asset-liability ratio was 50.85%, and the gross margin was 15.79%, down 1.28 percentage points from the previous quarter. Diluted earnings per share were 0.07 yuan, down 87.93% year-on-year. The number of shareholders was 82,700, and the top ten shareholders held 58.41% of the total share capital.
Linglong Tire Has Repurchased 1.85 Million Shares for Approximately 20 Million Yuan
Linglong Tire disclosed the progress of its share repurchase. As of July 31, 2026, the company had repurchased a total of 1.85 million shares, accounting for 0.13% of its total share capital. The total repurchase amount was approximately 20 million yuan, with the repurchase price ranging from 10.16 yuan to 11.5 yuan per share. In the first quarter of 2026, the company achieved operating revenue of 6.057 billion yuan and net profit attributable to the parent company of 16.89 million yuan.
Linglong Tire’s actual controller Wang Feng transfers controlling shareholder equity to spouse Dai Yunxia at zero consideration
Linglong Tire’s actual controller Wang Feng has transferred his entire 14.55% stake in the controlling shareholder Linglong Group to his spouse Dai Yunxia at zero consideration. As a result, Dai Yunxia indirectly holds approximately 6% of Linglong Tire, with a market value of about 1.038 billion yuan based on the current share price. After the transfer, Wang Feng no longer directly holds equity in Linglong Group, but still indirectly holds approximately 4% of Linglong Tire through Yingcheng Trading Co., Ltd. Dai Yunxia has also signed a concert party agreement with Wang Feng, Wang Xicheng, Zhang Guangying, and Wang Lin, further consolidating the Wang family’s control over Linglong Group. Wang Feng is the son of Linglong Tire founder Wang Xicheng. He previously resigned as company president but remains chairman.
Linglong Tire expects first-half 2026 net profit to drop 87% year-on-year
Linglong Tire disclosed its earnings forecast, estimating net profit attributable to the parent company for the first half of 2026 at 110 million yuan, down 87% year-on-year. Deducted non-recurring net profit is expected to be 9 million yuan, down 99%. The sharp decline is mainly due to exchange rate fluctuations. The appreciation of the renminbi led to an exchange loss of about 342 million yuan in the first half, compared with an exchange gain of 691 million yuan in the same period of 2025, reducing total profit by approximately 1.033 billion yuan year-on-year. Excluding the exchange rate impact, the company's main business operations improved year-on-year.
Linglong Tire's Controlling Shareholder Releases 47 Million Shares from Pledge
Linglong Tire's controlling shareholder, Linglong Group, has released 47 million shares from pledge, representing 7.80% of its holdings and 3.21% of the company's total share capital. As of the announcement date, Linglong Group still has 141 million shares pledged, accounting for 23.32% of its holdings and 9.60% of the company's total share capital. In the first quarter of 2026, Linglong Tire achieved revenue of 6.057 billion yuan and net profit attributable to the parent company of 16.89 million yuan.
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