Net Profit Margin of 9.5%! SenQilin Profitability Leads the Industry

August 24, Qingdao SenQilin Tire Co., Ltd. released its 2026 Half-Year Report. Facing multiple challenges such as geopolitical tensions, raw material price fluctuations, and exchange rate volatility, SenQilin relied on strong operational resilience to achieve operating revenue of 4.422 billion yuan in the first half of the year, a year-on-year increase of 7.33%. The net profit attributable to shareholders of the listed company was 420 million yuan, with the overall net profit margin maintaining an excellent level of 9.5%. Among tire enterprises primarily focused on semi-steel tires, its profitability remains firmly in the top tier of the industry.

High-end product structure is the key to SenQilin maintaining high profitability. The company focuses on high-performance tires of 17-inch and above large sizes. Such products have high added value and strong pricing power. Data shows that the sales amount proportion of SenQilin's 17-inch and above, 18-inch and above large-size high-performance tires remained at around 65% and 40% respectively. The continuous improvement in the proportion of high-end products effectively offset cost pressure and provided solid support for the company's profitability.

In terms of production and sales, SenQilin's production reached 17.1314 million tires in the first half of the year, a year-on-year increase of 10.03%; sales reached 16.6389 million tires, a year-on-year increase of 11.89%, achieving strong production and sales. Among them, second-quarter revenue increased by 13.4% year-on-year, with a significant recovery trend.

Faced with a complex international trade environment, the company accelerated its global layout. As a pioneer of Chinese tire enterprises implementing production capacity in North Africa, the construction of SenQilin's Morocco Smart Manufacturing Base has made significant progress and is gradually entering the capacity release stage. Relying on this factory, the company has obtained the global supplier qualifications of the Renault and Stellantis groups. It is expected that local supply will be achieved in 2027. The synergistic effect of the "Golden Triangle" of global production capacity in China, Thailand, and Morocco has become a strong backing for SenQilin to cope with trade barriers and enhance global competitiveness. In the future, the company will continue to advance the "833 Plus" strategy and move towards becoming a world-class tire enterprise.