TRIANGLE TYRE(SH:601163) Xi Niu Cai Jing·2025-05-14 07:12Core Insights - Triangle Tire Co., Ltd. reported a decline in both revenue and profit for Q1 2025, indicating operational challenges for the company [2] Financial Performance - The company's revenue for Q1 2025 was 2.24 billion yuan, a year-on-year decrease of 5.92% and a quarter-on-quarter decrease of 11.78% [5] - Net profit attributable to shareholders was 166 million yuan, representing a significant year-on-year decline of 43.54% and a quarter-on-quarter decline of 24.23% [5] - The net profit after excluding non-recurring gains and losses was 108 million yuan, down 55.28% year-on-year and 34.61% quarter-on-quarter [5] - The gross profit margin for Q1 2025 was 15.45%, a decrease of 5.20 percentage points year-on-year and 0.16 percentage points quarter-on-quarter [5] - The net profit margin was 7.39%, down 4.94 percentage points year-on-year and 1.22 percentage points quarter-on-quarter [5] Expense Analysis - Total operating expenses for Q1 2025 were 175 million yuan, a slight decrease of 1.66 million yuan year-on-year, but the expense ratio increased to 7.82%, up 0.39 percentage points year-on-year [5] - Sales expenses decreased by 7.53% year-on-year, while management expenses increased by 4.50% and R&D expenses rose by 19.63% [5] - Financial expenses decreased by 26.98%, indicating a mixed impact on overall profitability due to changes in expense structure [5] Market Context - In 2024, Triangle Tire's annual revenue was 10.16 billion yuan, down 2.55% year-on-year, with net profit decreasing by 21.03% to 1.10 billion yuan [6] - The increase in raw material prices, particularly natural and synthetic rubber, which rose by 30% and 19% respectively, contributed to the profit pressure [6] - Despite price increases to counteract rising costs, the company faced challenges in fully passing on these costs to consumers, leading to continued profit pressure into Q1 2025 [6]