Annual Reports
Prinx Chengshan Holdings Limited's annual reports contain management's most considered account of the business. These are the sections, passages and visual pages worth opening in the originals preserved in Sources.
Prinx Chengshan Holdings Limited — FY2025 Annual Report — FY2025
A year when volume and revenue rose but margin fell, and the third production base moved from plan to construction. · Open the full document →
Financial Highlights — p. 5 · Read the full section →
Five-year P&L and ratio series — the only place the full tyre cycle, from the 2021–22 trough to the 2024 peak, is visible at once.
Overview of the Group — p. 8 · Read the full section →
The company's own definition of what it is, where it manufactures, and the three product families that carry the revenue.
Business description and the four core strategies, including the Malaysia base under construction.
The business of Prinx Chengshan Holdings Limited (the “Company” or “Prinx Chengshan”) started in 1976 and is headquartered in Rongcheng City, Shandong Province, the PRC. It is a modern enterprise focusing on tire design, research and development, manufacturing, sales and provision of tire life-cycle services. It is a leading domestic manufacturer in the commercial all steel radial tire replacement market and one of the most influential tire enterprises in the PRC. Over the years, Prinx Chengshan has adhered to the core strategies of “cost leadership, efficiency driven, competitive differentiation and global operation” to strive for global development, possesses two major production bases in China and Thailand, two major R&D centres in Qingdao and Rongcheng (China), and has established three major sales centres in China, North America and Europe and commenced the construction for a third production base in Malaysia to develop a global business operation.
p. 8 · Read in context →
The three product families, their end-use vehicles, and the four brands.
The three major products of the Company and its subsidiaries (the “Group”) are all steel radial tires (“All Steel Tires”), semi-steel radial tires (“Semi-Steel Tires”), and bias tires (“Bias Tires”). All Steel Tires are mainly used in medium/long-distance transportation, buses, mixed road or off-road vehicles, light trucks, etc.; Semi-Steel Tires are mainly used in passenger vehicles, pick-up trucks, sport utility vehicles (SUVs) and other types of vehicles; Bias Tires are mainly installed in vehicles in agricultural and industrial off-road conditions. The Group’s products have obtained certifications from relevant authorities in major tire markets around the world, including Department of Transportation of the USA (“DOT”), Economic Commission of Europe (“ECE”) R117, etc. […] The Group has four well-known tire brands, namely Prinx (浦林), Chengshan (成山), Austone (澳通) and Fortune (富神).
p. 9 · Read in context →
Chairman's Statement — p. 10 · Read the full section →
Management's own framing of a year in which volume grew and profit fell, with the headline figures it chose to lead on.
FY2025 results as the Chairman presents them: 29.3m tyres sold, revenue +7.6%, profit attributable -17.1%.
Looking back on 2025, China’s tire industry faced a complex landscape characterized by a high degree of external uncertainty. Market competition became increasingly fierce, putting pressure on the industry’s overall profitability. Faced with challenging operating environment, we maintained our strategic focus throughout the year by implementing five key initiatives: “Strengthening the Foundation, Building Momentum, Paving the Way, Consolidating the Base, and Gathering Strength”. Over the year, we sold 29.3 million tires, a year-on-year increase of 4.7%, achieving total revenue of RMB11.8 billion, a year-on-year increase of 7.6%. During the Reporting Period, due to the ongoing escalation of international trade barriers, geopolitical fluctuations and uncertainties related to relevant policies, the Company’s profitability metrics experienced periodic fluctuations year-on-year: EBITDA (Note 1) reached RMB1.77 billion, a year-on-year decrease of 11.1%; profit attributable to shareholders for the year was RMB1.088 billion, a year-on-year decrease of 17.1%; and basic earnings per share were RMB1.71, a year-on-year decrease of 17.0%. Although profitability metrics experienced slight fluctuations, core operating indicators remained robust. The Company’s asset-liability ratio was maintained at a healthy level of 38.8%, fully demonstrating the Group’s strong financial resilience and risk resistance capabilities, providing a solid financial foundation and support for subsequent global expansion and business growth. The Board has proposed a final dividend of HK$0.5 per share to share the fruits of development with all shareholders.
p. 10 · Read in context →
OPERATION REVIEW — p. 14 · Read the full section →
Volume by product and revenue by channel — where the OE surge and the domestic replacement decline first appear together.
Sales volume by tyre type and revenue by channel, with the Shandong/Thailand revenue split.
In 2025, the Group sold approximately 29.3 million sets of tires, representing a year-on-year increase of 4.7%. Among them, sales of All Steel Radial Tires amounted to approximately 8.4 million sets, representing a year-on-year increase of 5.3%; sales of Semi-Steel Radial Tires amounted to approximately 20.4 million sets, representing a year-on-year increase of 4.7%; sales of Bias Tires amounted to approximately 0.5 million sets, representing a year-on-year decrease of 1.3%. […] The Group mainly supplies the replacement market through distributors. As of the Reporting Period, the Group’s revenue from domestic distributor channels (including private label customers) amounted to approximately RMB2,078.9 million (2024: approximately RMB2,325.6 million), representing a year-on-year decrease of 10.6%; the revenue from international distributor channels amounted to approximately RMB7,796.6 million (2024: approximately RMB7,536.8 million), representing a year-on-year increase of 3.4%; and the revenue from direct sales to automobile manufacturers amounted to approximately RMB1,926.3 million (2024: approximately RMB1,107.7 million), representing a year-on-year increase of 73.9%. Among them, All Steel Radial Tires and Semi-Steel Radial Tires accounted for approximately 56.5% and 41.8% (2024: 57.2% and 41.0%) of the Group’s revenue, respectively, while Bias Tires accounted for approximately 1.7% (for the same period of 2024: 1.8%); the revenue from the tire production base in Shandong (hereinafter referred to as the “Tire Production Base in Shandong”) and the tire production base in Thailand (hereinafter referred to as the “Tire Production Base in Thailand”) of the Group accounted for approximately 62% and 38% of the Group’s revenue, respectively (for the same period of 2024: 62% and 38%).
p. 15 · Read in context →
(VI) Production capacity — p. 23 · Read the full section →
Installed capacity and utilisation by base, plus the August 2025 Thai production suspension — the year's main operating disruption.
Capacity and utilisation rates at the Shandong and Thailand bases, against 2024.
The Group's Tire Production Base in Shandong currently has a production capacity of 7.4 million sets of All Steel Radial Tires and 11.53 million sets of Semi-Steel Radial Tires per year, and the Tire Production Base in Thailand currently has a production capacity of 2 million sets of All Steel Radial Tires and 10 million sets of Semi-Steel Radial Tires per year. During the Reporting Period, the capacity utilisation rates of All-Steel Radial Tires/Semi-Steel Radial Tires at the Tire Production Base in Shandong were 93.8%/92.6% respectively (82.6%/97.8% for the same period of 2024), and the capacity utilisation rates of All-Steel Radial Tires/Semi-Steel Radial Tires at the Tire Production Base in Thailand were 80.6%/92.5% respectively (87.1%/97.2% for the same period of 2024).
p. 23 · Read in context →
The Thai regulatory suspension, rectification and resumption of production in September 2025.
In August 2025, Prinx Chengshan Tire (Thailand) Co., Ltd. (“Prinx Thailand”), a wholly-owned subsidiary of the Company, received a notice of temporary suspension of production from the Industrial Estate Authority of Thailand due to matters concerning the acceptance of waste treatment and emissions at its Thai production base. Following active rectification and communication, the local competent authorities agreed to resume trial production from August 8, 2025 to September 4, 2025 (inclusive) to complete the testing and acceptance of relevant environmental protection equipment. During the period, the Company strictly implemented various rectification measures in accordance with the requirements of local laws and regulations, completed all rectification work on September 4, 2025, and obtained formal approval for the full resumption of normal production on September 5, 2025. The relevant matters have been properly resolved and have not had a material adverse effect on the business operations and financial position of the Group. Through this incident, the Group has further strengthened its environmental compliance management system and comprehensively enhanced its production and operation standards and internal control levels. During routine inspections, the Industrial Estate Authority of Thailand fully recognized the effectiveness of the rectification and issued the “Eco-Champion” environmental certification certificate signed by the Minister of Industry of Thailand to commend the Company’s proactive performance in compliance rectification and sustainable development.
p. 23 · Read in context →
BUSINESS STRATEGIES AND PROSPECTS — p. 30 · Read the full section →
The forward statement is specific: orders diverge by base and by tyre type, which is more informative than the usual outlook boilerplate.
Order book by base and tyre type as at the report date, and the pressures management names.
As at the date of this report, the Group's overall orders generally remained stable, while the order structure of its domestic and overseas production bases showed a diverging trend. In particular, the orders for All-Steel Tires from the Production Base in Shandong were sufficient, while its orders for Semi-Steel Tires decreased. The orders for All-Steel Tires from the Tire Production Base in Thailand were slightly weak, while its orders for Semi-Steel Tires remained at a normal level. The industry's current development presents both challenges and opportunities. On the one hand, persistent geopolitical conflicts and escalating international trade barriers may exacerbate inflationary pressures and the trend towards downgraded consumption in the European and U.S. markets. While this brings uncertainty to the industry as a whole, it also creates opportunities for high-quality Chinese manufacturing enterprises to capture global market share. On the other hand, factors such as volatile raw material prices and obstructed exports in certain regions also place certain pressures on the Group's operations.
p. 30 · Read in context →
FINANCIAL REVIEW — p. 31 · Read the full section →
Management's explanation of the channel mix shift: capacity deliberately moved away from domestic replacement toward export and OE.
Why domestic distributor revenue fell 10.6% while direct sales to automakers rose 73.9%.
For the year ended December 31, 2025, revenue from sales to distributors (including private label customers) remained flat year-on-year, of which revenue from international distribution channels increased by 3.4% year-on-year, mainly due to the moderate increase in sales volume and the increase in average selling price of passenger vehicle tire products, although the sales volume of commercial vehicle tires decreased slightly due to multiple adjustments of U.S. tariffs. Revenue from domestic distribution channels decreased by 10.6% year-on-year, mainly because the Group proactively adjusted its sales strategy and, in light of the explosive growth in domestic demand for OE commercial vehicle tires, tilted its production capacity to focus on ensuring the development of its export and OE businesses, which in turn led to a corresponding decrease in the sales of commercial vehicle tire replacement. For the year ended December 31, 2025, revenue from direct sales to automobile manufacturers increased by approximately 73.9% year-on-year, representing a significant leap, mainly driven by the explosive growth in domestic demand for OE commercial and passenger vehicle tires, which not only led to an overall increase of 57.6% in sales volume through OE channels, but also promoted the continuous optimization of the product sales mix, jointly driving high-speed revenue growth in the OE segment.
p. 32 · Read in context →
Investments — p. 36 · Read the full section →
The two capital projects that will shape the next three years: the Malaysia base and the Shandong OTR plant, with cost and timing.
Malaysia base: USD299m, 6m semi-steel and 600k all-steel sets a year, trial production expected Q4 2026.
According to the Group's global capacity layout strategy, the Group is establishing a second overseas production base in Kedah Rubber City within the Northern Corridor Economic Region (NCER) of Malaysia. The capacity plan is for 6 million sets of Semi-Steel Radial Tires per year and 600 thousand sets of All Steel Radial Tires per year, with a total investment of USD299 million, which will be funded by the Group's internal resources and external financing. The Tire Production Base in Malaysia commenced construction in the third quarter of 2025. Currently, the land survey, preliminary approval applications and construction design have been completed, and construction is underway, with trial production expected in the fourth quarter of 2026. From 2027 to 2028, production capacity will be gradually released, with an annual output value of approximately USD270 million after reaching full capacity.
p. 36 · Read in context →
Shandong OTR project: RMB1.11bn, first 30.00R51 giant off-road tyre off the line January 19, 2026.
At the same time, according to the structural layout of “Emerging Markets + High-End Categories”, the Group is establishing the Shandong OTR project. The OTR project is located within the Green Tire Intelligent Manufacturing Industrial Park in Rongcheng, Shandong Province, situated on the north side of the existing Tire Production Base in Shandong. It covers an area of 104 thousand square meters, with a planned production capacity of 84 thousand high-performance engineering radial tires per year and 10 thousand giant engineering radial tires per year. The total investment for the OTR project is expected to be RMB1.11 billion, with construction beginning in the second quarter of 2025. It is anticipated to reach a designed capacity of 50 thousand tons of the OTR per year by 2029, with an annual output value of approximately RMB1 billion. The OTR project will fill the gap in domestic high-end engineering tires and achieve structural upgrading. Trial production for the OTR project commenced in the fourth quarter of 2025, and the first 30.00R51 giant off-road tire was successfully rolled off the production line on January 19, 2026.
p. 37 · Read in context →
RISKS AND UNCERTAINTIES — (III) Impacts caused by tariff and anti-dumping and countervailing duty imposed by international markets on products imported from the PRC and Thailand — p. 38 · Read the full section →
Trade duties are the risk that already shows up in the accounts, and the EU case opened in 2025 reaches the Shandong base directly.
US anti-dumping duty of 12.33% on truck and bus tyres from Thailand, now under first administrative review.
Furthermore, on November 7, 2023 (U.S. time), the U.S. Department of Commerce announced to initiate an anti-dumping investigation against Truck and Bus Tires imported from Thailand. The investigation period of the original investigation was from October 1, 2022 to September 30, 2023. Prinx Thailand participated in this anti-dumping investigation and submitted its defense as a compulsory respondent. On October 10, 2024, the U.S. Department of Commerce announced the final determination of the anti-dumping investigation on Truck and Bus Tires from Thailand, and the Group is subject to a tax rate of 12.33%. As the anti-dumping duty order has been officially implemented for over one year, Prinx Thailand has timely submitted an application for the first review to the U.S. Department of Commerce in accordance with relevant U.S. regulations regarding annual administrative reviews of anti-dumping duty orders. Currently, the case is still under further review.
p. 39 · Read in context →
EU anti-dumping and countervailing investigations into Chinese passenger and light-truck tyres, with import registration from January 2026.
In Europe, on May 21, 2025, the European Union announced the initiation of an anti-dumping investigation against tires for passenger vehicles and light trucks (HS codes 40111010 and 40112010) originating from China, followed by a countervailing duty investigation on November 6, 2025. Both investigations are currently in the normal investigation process. Since January 22, 2026, the European Union has implemented import registration for the tires involved to allow for potential retroactive taxation. The investigation period for the anti-dumping and countervailing duty investigations is from January 1, 2024, to December 31, 2024, while the injury investigation period is from January 1, 2021 to the end of the dumping investigation period. The Group has responded proactively and submitted the relevant responses on time. Despite a certain impact on the Group's Shandong company, the anti-dumping investigation by the EU government has also intensified the industrial transformation of global tire industry. The Group will leverage this opportunity to accelerate the optimisation of industrial structure and product upgrades, strengthen the strategic layout of its overseas bases in Thailand and Malaysia, and comprehensively enhance its core competitiveness and risk resistance in the international market through technological innovation and the improvement of supply chain resilience.
p. 39 · Read in context →
Prinx Chengshan Holdings Limited — FY2022 Annual Report — FY2022
Included for one section: the capacity layout before Malaysia, when the plan was Shandong plus Thailand. · Open the full document →
(6) Capacity layout — p. 24 · Read the full section →
The same section three years earlier: a two-base footprint, and Thai semi-steel utilisation at 57.1% against 92.5% in FY2025.
The Thailand base after phase II: 2.0m all-steel and 8.0m semi-steel sets a year, semi-steel utilisation 57.1%.
In the second half of 2020 and the first half of 2021, the Group successively commenced the production capacity expansion of 1.2 million sets/year of All Steel Radial Tires and 4.0 million sets/year of Semi-Steel Radial Tires of the phase II of the Tire Production Base in Thailand. Currently, the second phase of the project has gradually reached its production capacity in the first quarter of 2022. The Tire Production Base in Thailand has a production capacity of 2.0 million sets of All Steel Radial Tires per year and 8.0 million sets of Semi-Steel Radial Tires per year, which helps the Group to further explore overseas markets such as North America and Europe. During the Reporting Period, the capacity utilization rate of All Steel Radial Tires and Semi-Steel Radial Tires at the Tire Production Base in Thailand was 94.4%/57.1%, respectively.
p. 24 · Read in context →
More annual reports
Prinx Chengshan Holdings Limited — FY2024 Annual Report — FY2024 · 201 pages · The cycle peak and the comparison base for FY2025: gross margin 21.2%, ROE 21.9%, net profit RMB1,311.9 million. · Open →
Prinx Chengshan Holdings Limited — FY2023 Annual Report — FY2023 · 213 pages · The recovery year in which gross margin jumped from 14.3% to 21.3% as raw material and freight costs normalised. · Open →
Prinx Chengshan Holdings Limited — FY2021 Annual Report — FY2021 · 189 pages · The trough edition: 13.8% gross margin, the Thailand phase II ramp, and the expiry of the Cooper supply agreement. · Open →