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

Chinese tire manufacturer Linglong Tire has issued a profit warning for the first half of 2026, forecasting an 87% year-on-year collapse in net profit to Yuan110 million (€14 million), down from Yuan854 million in the same period of 2025. Excluding non-recurring items, net profit is expected to plummet 99% to Yuan9 million, compared with Yuan772 million a year earlier. The company attributed the steep decline primarily to foreign exchange losses stemming from the renminbi’s continued appreciation against a weakening US dollar and euro. Linglong reported foreign exchange losses of about Yuan342 million in the first half of 2026, a sharp reversal from Yuan691 million in gains during the first half of 2025, which reduced pre-tax profit by approximately Yuan1.03 billion year-on-year. Despite the currency headwinds, Linglong stated that its core business operating performance improved after excluding the impact of foreign exchange gains and losses. The earnings forecast remains unaudited. Separately, Linglong confirmed it is pursuing reimbursement for land acquisition and other preliminary costs tied to its canceled tire plant project in Tongchuan, Shaanxi province, though the company cautioned that full recovery of the invested amount remains uncertain. The announcement was made in a 14 July earnings forecast.