Linglong warns first-half earnings to plunge 87% on currency losses

Shanghai, China — Linglong Tire expects first-half net profit to fall 87% year-on-year, due mainly to foreign exchange losses.

In a 14 July earnings forecast, the Chinese tire maker said it expects net profit attributable to shareholders of the company to come at Yuan110 million (€14 million) for the six months to 30 June, down from Yuan854 million reported a year earlier.

Net profit excluding non-recurring items is forecast to decline 99% year-on-year to Yuan9 million, compared with Yuan772 million in the first half of 2025.

Linglong attributed the sharp earnings decline primarily to exchange-rate movements, saying the continued appreciation of the renminbi against a weakening US dollar and euro.

The company said it recorded foreign exchange losses of about Yuan342 million in the first half of 2026, compared with gains of Yuan691 million a year earlier, reducing pre-tax profit by about Yuan1.03 billion year-on-year.

"After excluding the impact of foreign exchange gains and losses, the company's core business operating performance improved compared with the same period last year," Linglong said.

The earnings forecast has not been audited.

Linglong also noted that it continues to seek reimbursement of land acquisition and other preliminary costs related to its cancelled tire plant project in Tongchuan, Shaanxi province.

The company said it is "actively communicating with all relevant parties" in an effort to recover the full amount invested, but cautioned that "whether the full amount can be recovered remains uncertain."