Core Viewpoint - The financial report of Sailun Tire reveals a contrasting picture of declining net profit alongside significant dividend distribution, indicating a complex financial situation for the company [1][2]. Financial Performance - Sailun Tire reported a revenue of 17.59 billion yuan for the first half of the year, representing a year-on-year increase of 16.05% [1]. - The net profit attributable to shareholders was 1.83 billion yuan, reflecting a decline of 14.90% compared to the previous year [1]. - The decrease in profitability is attributed to international trade barriers, raw material prices, and market conditions, leading to a decline in gross margin [1]. Dividend Distribution - Despite the profit decline, Sailun Tire plans to distribute a cash dividend of 0.15 yuan per share, totaling approximately 493 million yuan [2]. - Since its listing, the company has cumulatively distributed over 4.7 billion yuan in cash dividends [3]. Capital Expenditure and Financing - Sailun Tire has raised over 8.5 billion yuan in direct financing and over 10.8 billion yuan in indirect financing since its listing [4]. - The company has maintained high capital expenditures, with cash payments for fixed assets and other long-term assets totaling approximately 11.4 billion yuan from 2022 to mid-2023 [4]. - The net cash generated from operating activities has not covered its capital expenditures during the reporting period [4]. New Project Announcement - Sailun Tire announced an investment of 1.7 billion yuan for a new project to produce 3.3 million all-steel radial tires and 20,000 non-road tires, aimed at enhancing production capacity [5]. - The project will be developed by Sailun's wholly-owned subsidiary, which has been operating at a loss since last year, with a net profit of -480 million yuan as of December 31, 2024 [5]. - The new project is expected to improve the company's capacity layout and strengthen its ability to respond to risks [5].