Investment Rating - The investment rating for the company is maintained as "Buy" [9] Core Views - The company reported a revenue of 4.778 billion RMB for H1 2025, a year-on-year decrease of 4.50%, and a net profit of 396 million RMB, down 35.31% year-on-year [1][2] - The decline in sales volume and profit is attributed to insufficient domestic replacement market demand, increased international market incidents, and intensified market competition [2] - The company is expected to see a relief in cost pressures in Q3, but the EU's anti-dumping investigations may impact sales and profitability [3][9] Summary by Sections Financial Performance - In H1 2025, the company sold 11.12 million tires, a decrease of 9.06% year-on-year, with tire business revenue at 4.75 billion RMB, down 4.36% [2] - The gross margin decreased by 3.75 percentage points to 16.03% due to high raw material costs, while the expense ratio increased by 0.6 percentage points to 7.89% [2] Sales and Market Dynamics - Q2 2025 saw tire sales of 5.85 million units, with revenue of 2.52 billion RMB, reflecting a year-on-year decrease of 3% [3] - The company experienced stable domestic sales for all-steel tires and a growth of over 15% in semi-steel tire domestic sales [2] Profit Forecast and Valuation - The net profit forecast for 2025-2027 has been revised down to 978 million, 1.072 billion, and 1.194 billion RMB respectively, reflecting a decrease of 11%, 9%, and 10% [4] - The target price is set at 15.86 RMB, based on a 13x PE ratio for 2025 [4][5]

Group 1 - Company Triangle Tire (SH 601163) announced the convening of its 12th meeting of the 7th Board of Directors on August 26, 2025, to review the 2025 semi-annual report and summary [1] - For the year 2024, Triangle Tire's revenue composition is 99.6% from the tire industry and 0.4% from other businesses [1] Group 2 - The pet industry is experiencing significant growth, with a market size of 300 billion yuan, leading to a surge in stock prices for related listed companies [1]

Core Viewpoint - Triangle Tire Co., Ltd. is set to hold a half-year performance briefing on September 3, 2025, to discuss its operational results and financial status for the first half of 2025, allowing investors to engage in Q&A sessions [4][5][7]. Company Overview - Triangle Tire Co., Ltd. has confirmed that its board of directors and senior management guarantee the accuracy and completeness of the half-year report [1][3]. - The company has not proposed any profit distribution or capital increase plans for the reporting period [2]. Financial Data - The company has not disclosed specific financial data in the provided documents, but it has indicated that the half-year report is available for detailed review on the Shanghai Stock Exchange website [2][17]. Important Events - The company will conduct an interactive online meeting for investors to address common concerns regarding its half-year performance and financial indicators [5][6]. - The meeting will take place on September 3, 2025, from 15:00 to 16:00, via the Shanghai Stock Exchange Roadshow Center [7][8]. Operational Highlights - In the second quarter of 2025, the sales price of the company's tire products increased by 1.12% year-on-year but decreased by 0.61% compared to the previous quarter [19]. - The procurement prices of key raw materials, including natural rubber and synthetic rubber, saw a year-on-year increase of 0.53% but a quarter-on-quarter decrease of 7.13% [20].

Core Viewpoint - Triangle Tyre Co., Ltd. reported a decline in key financial metrics for the first half of 2025, primarily due to rising raw material costs, increased operational expenses, and a decrease in sales volume, reflecting challenges in the tire industry amid a competitive market environment [2][3]. Financial Performance - The company's operating revenue for the first half of 2025 was approximately CNY 4.78 billion, a decrease of 4.50% compared to the same period in the previous year [2]. - Total profit for the period was CNY 465.58 million, down 35.42% year-on-year [2]. - Net profit attributable to shareholders was CNY 395.88 million, a decline of 35.31% compared to the previous year [2]. - The net cash flow from operating activities was CNY 365.72 million, down 23.43% from the previous year [2]. Business Overview - Triangle Tyre specializes in tire design, manufacturing, and marketing, with over 99% of its revenue derived from tire-related products [3]. - The company produces a wide range of tires, including those for commercial vehicles, passenger cars, engineering vehicles, and specialty vehicles, with over 50% of its products exported to international markets [3][4]. Market Position - Triangle Tyre is recognized as a leader in technological innovation within the Chinese tire industry and ranks 8th among Chinese tire companies based on revenue for 2024 [3]. - The company is positioned 25th in the global tire industry according to the Tire Business publication [3]. Industry Context - The global tire market is mature, with significant competition from established brands like Bridgestone and Michelin [3]. - The Chinese tire industry is the largest in production and consumption, benefiting from domestic demand and the rapid development of new energy vehicles [3]. - The first half of 2025 saw a 2.0% year-on-year increase in China's rubber tire production, with exports also showing growth [3]. Operational Challenges - The company faced a 9.06% decline in tire sales volume, selling approximately 1.11 million tires in the first half of 2025 [3]. - The increase in raw material prices, particularly for natural and synthetic rubber, has significantly impacted profit margins [3][4]. - Despite these challenges, the company reported a 12.89% increase in revenue in the second quarter compared to the first quarter of 2025, indicating some recovery [3]. Strategic Initiatives - Triangle Tyre is focused on global brand development and innovation in tire technology, aiming to enhance product differentiation and maintain industry leadership [3]. - The company has established strategic partnerships with quality suppliers to manage raw material costs effectively [3]. - A digital transformation strategy is being implemented to improve operational efficiency and product quality through advanced manufacturing technologies [3].

Core Points - Triangle Tire Co., Ltd. reported a decrease in revenue and profit for the first half of 2025, with operating income at approximately 4.78 billion RMB, down 4.50% from the previous year [1] - The net profit attributable to shareholders decreased by 35.31% to approximately 396 million RMB, compared to 612 million RMB in the same period last year [1] - Total assets increased slightly by 1.19% to approximately 19.51 billion RMB, while net assets attributable to shareholders decreased by 0.13% [1] Financial Summary - Total assets at the end of the reporting period: 19,508,870,383.83 RMB, an increase of 1.19% from the previous year [1] - Net profit attributable to shareholders: 395,882,759.10 RMB, a decrease of 35.31% compared to the previous year [1] - Operating income: 4,777,853,138.49 RMB, down 4.50% from the previous year [1] - Total profit: 465,584,342.27 RMB, a decrease of 35.42% from the previous year [1] - Basic and diluted earnings per share: 0.49 RMB, down 36.36% from 0.77 RMB [1] - Net cash flow from operating activities: 365,716,364.05 RMB, a decrease of 23.43% from the previous year [1] Shareholder Information - The largest shareholder, Triangle Group Co., Ltd., holds 56.84% of the shares [1] - The total number of shareholders at the end of the reporting period was 40,659 [1] - Other significant shareholders include individuals with holdings ranging from 0.43% to 1.92% [2]

Group 1 - The board meeting of Triangle Tire Co., Ltd. was held on August 26, 2025, with all 9 directors present, including 3 via remote voting [1] - The board unanimously approved the 2025 semi-annual report and summary with 9 votes in favor, 0 against, and 0 abstentions [1] - The board also approved the semi-annual evaluation report of the "Quality Improvement and Efficiency Enhancement" action plan for 2025, again with unanimous support [2]

Group 1 - The company reported its Q2 2025 operational data, including production, sales, and revenue figures for its main products [1] - The production volume of tires reached 6.2856 million units, while sales volume was 5.8506 million units, generating a sales revenue of 2,517.8774 million yuan [1] - The comprehensive procurement price of carbon black increased by 0.53% year-on-year but decreased by 7.13% compared to the previous quarter [1] Group 2 - There were no other significant events affecting the company's production and operations during the quarter [1]

Core Viewpoint - Triangle Tire Co., Ltd. has launched the "Quality Improvement and Efficiency Enhancement Action Plan" for 2025 to promote high-quality development and protect the rights of investors, especially small and medium-sized investors [2][3] Group 1: Operational Performance - In the first half of 2025, the company produced 12.1461 million tires, a year-on-year increase of 0.95%, with a capacity utilization rate of 90.36% [2] - The company's revenue reached 4.778 billion yuan, a decrease of 4.50% year-on-year, while net profit attributable to shareholders was 396 million yuan, down 35.31% [2] - Overall sales volume decreased by 9.06% due to insufficient domestic replacement market demand and increased international market competition [3] Group 2: Product Development and Innovation - The company has launched new products in various categories, including commercial vehicle tires and high-performance passenger car tires, to meet market demands [4][5] - The company has obtained 98 authorized patents, including 3 invention patents, and continues to optimize product structure and enhance product quality [4][6] - New technologies and materials are being developed to improve product performance and market competitiveness, including the application of environmentally friendly materials [6] Group 3: Corporate Governance and Investor Relations - The company has established a clear management structure for sustainable development and has published its first ESG report in April 2025 [6][7] - In the first half of 2025, the company conducted various training sessions for board members and management to enhance compliance and governance awareness [7][8] - A cash dividend of 424 million yuan was approved for the 2024 fiscal year, representing 38.45% of the net profit attributable to shareholders [8][9] Group 4: Communication with Investors - The company maintains timely communication with investors through various channels, including online platforms and investor meetings [9] - In the first half of 2025, the company responded to numerous investor inquiries and organized factory visits to showcase its smart manufacturing achievements [9]

Group 1 - The company, Triangle Tire Co., Ltd., will hold a half-year performance briefing on September 3, 2025, from 15:00 to 16:00 to discuss its 2025 half-year operating results and financial status [1][2][3] - The briefing will be conducted in an interactive online format via the Shanghai Stock Exchange Roadshow Center [1][3] - Key personnel attending the briefing include General Manager Lin Xiaobin, Secretary of the Board and Financial Officer Zhong Danfang, and independent directors Zhao Lei, Zhang Juzhong, and Wang Zhenjie [1] Group 2 - Investors can participate in the briefing by logging into the Shanghai Stock Exchange Roadshow Center website on the scheduled date [2][3] - A question collection period is available from August 27, 2025, to September 2, 2025, allowing investors to submit questions via the website or company email [2][3] - After the briefing, investors can access the main content and details of the event through the Shanghai Stock Exchange Roadshow Center [2]

Group 1 - The company announced the approval of its 2025 semi-annual report and summary during the 12th meeting of the 7th Board of Directors [2]