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 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]