Primetech Group Interim Report: Strong Domestic Performance, Overseas Pressure, Net Profit 414 Million CNY

On August 18, Primetech (01809.HK) released its 2026 interim performance report. This "mid-year exam" report card shows that the group achieved operating revenue of approximately 5.79 billion RMB in the first half of the year, a year-on-year increase of 1.4%; net profit attributable to owners of the company was approximately 414 million yuan. During the reporting period, the company showed a divided trend of robust domestic market growth and pressure on overseas channels.

Double-digit growth in domestic revenue, OEM performance shines

In the domestic market, Primetech performed strongly. Data shows that operating revenue from domestic dealer channels in the first half of the year was approximately 1.202 billion yuan, an increase of 18.1% year-on-year. More significantly, revenue from direct sales to automakers (OEM) was approximately 996 million yuan, a significant increase of 25.8% year-on-year.

Management analysis points out that this growth mainly benefited from the counter-trend growth in China's commercial vehicle market, effectively driving the demand for all-steel radial tires. All-steel tire sales reached 4.3 million units, up 9.0% year-on-year, and revenue grew 5.1% year-on-year, becoming an important force supporting domestic revenue.

Overseas channel revenue declined, passenger car radial tires face challenges

Compared to the feverish domestic market, Primetech's international dealer channels faced certain challenges. In the first half of the year, revenue from this channel was approximately 3.587 billion yuan, a decrease of 7.9% year-on-year.

Specifically in product segments, passenger car radial tires faced significant market pressure. Although sales increased by a slight 2.7%, reaching 10.3 million units, revenue decreased by 4.4% year-on-year, dragged down by currency conversion and an average selling price decline of 6.9%. In comparison, special tires performed excellently; bias and OTR tire revenue increased significantly by 30.8% year-on-year, mainly benefiting from capacity release and a significant increase in average selling price of 36.7%.

Dual-base operation steady, net profit under short-term pressure

Regarding production capacity layout, the "dual-base" strategy of Shandong and Thailand operated steadily, with revenue shares of 63.0% and 37.0% respectively. Regarding profitability indicators, the group's gross profit in the first half of the year was approximately 975 million yuan, up 2.9% year-on-year; EBITDA was approximately 747 million yuan, with a margin of 12.9%. However, affected by industry environment, profit attributable to shareholders decreased by 18.5% year-on-year.

Looking forward, Primetech stated it will continue to increase R&D investment, carry out technological innovation around green low-carbon and high-performance products to meet the differentiated demands of the global market.