Prinx links 34% earning dip to materials costs, tariffs

Hong Kong, China – Prinx Chengshan Holdings Ltd has reported first half sales up 6.4% year-on-year (YoY) to Yuan5.7 billion (€685 million), but earnings (EBITDA) down 33.8% at Yuan791 million.

Over the six months of 2025, Prinx grew revenue despite challenges from fluctuating raw material prices and international trade frictions, said its 27 Aug announcement.

Sales of all-steel radial tires and passenger car radials reached 3.94 million (-3.8% YoY) and 9.99 million units (+5.7% YoY) respectively: generating revenue of Yuan3.16 billion (+3.0% YoY) and Yuan2.46 billion (+11.6% YoY).

Product mix improved, with new high-value offerings such as NEV special-purpose tires and the 'colour' series tires boosting value-added sales, continued the Chinese tire maker.

Revenue from international distributor channels grew 10.9% YoY to Yuan3.896 billion – 68.3% of total revenue – while revenue from direct sales to automakers channels grew 30.5% to Yuan792 million.

Earnings declined of the first half mainly due to rising raw material costs, tariffs, and a high base in 2024 due to an anti-dumping tax refund of Yuan145 million, noted Prinx.

Profit-pressure, it added, was cushioned by product optimisation, smart manufacturing upgrades, and global expansion, laying a solid foundation for long-term development.

Steps included “efficiently” allocating capacity through smart upgrades at its Shandong and Thailand plants to maintain “industry-leading” production utilisation rates.

More broadly, operational efficiency was enhanced via technical upgrades and lean management, as well as “full automation in logistics... energy management systems, AI inspection, real-time cost tracking.”

Looking ahead, Prinx said it will focus on optimising domestic and overseas capacity allocation to strengthen its global footprint against trade friction.

Top priorities also include: accelerating digital and smart manufacturing transformation; and deepening collaboration with upstream and downstream partners to enhance supply-chain resilience.

Prinx’s growth agenda further encompasses “introducing high-value innovative products and expanding into new energy vehicle and overseas emerging markets.”