Prinx Chengshan revenues rise on tire volume growth

Shandong, China – Chinese tire manufacturer Prinx Chengshan Holdings has reported a solid first-half sales performance, helped by increased volumes.

Over the first six months, the group sold 14.8 million tires, up 4.4% compared to a year ago, while revenue increased 1.4% to Yuan5.8 billion (€740 million).

At RMB975 million, gross profit came in 2.9% above the prior-year-period level, though net profit fell 18.5% year-on-year to RMB414 million, Prinx reported 18 Aug.

The earnings reverse was linked to headwinds such as “volatile and rising prices of key raw materials,” exchange-rate fluctuations and “a complex international trade environment.”

According to Prinx, it “maintained sound fundamental business performance” during the period, despite “periodical pressure on short-term profitability”.

Revenue from all-steel radial truck tires rose 5.1% year-on-year to Yuan3.32 billion while semi-steel passenger car tire revenue fell 4.4% to Yuan2.35 billion.

Group revenue from bias and OTR tires increased 30.8% year-on-year to Yuan110 million, continued the Prinx statement.

Domestic distribution revenue in China increased 18.1% to Yuan1.20 billion, while overseas sales stood at Yuan3.59 billion. Sales to OEMs grew 25.8% year-on-year to Yuan1.00 billion.

Growth in domestic distribution and OEM business “effectively offset the short-term pressure stemming from structural adjustments to international channels,” noted Prinx.

Prinx will continue to focus on “high-end product positioning, green transition and global expansion”, while using its differentiated product portfolio and global production capacity to support longer-term growth.

Commenting on operations, Prinx said its Shandong and Thailand production bases were operating “efficiently,” while construction of its new Malaysia production base was “progressing as planned.”

The first tire at the Malaysian plant is expected to roll off the production line in the fourth quarter of 2026, with capacity to be gradually released from 2027.

The group has also completed trial production of giant-size tires and established a digital-enabled R&D system.