Shandong Linglong Tyre Co. Ltd.Half-Year Assessment Report on the 2025 Annual Corporate

Value and Return Enhancement Action Plan

In order to further implement the spirit of the 20th National Congress

of the Communist Party of China and the Central Financial Work

Conference conscientiously implement the State Council's "Opinions on

Further Improving the Quality of Listed Companies" actively respond to

the Shanghai Stock Exchange's Initiative on Launching the Corporate

Value and Return Enhancement Action Plan for Shanghai-listed

Companies practice the development concept of "investor-centricity" and

further improve the investment quality and value of the company the

company formulated and released the "2025 Annual Corporate Value and

Return Enhancement Action Plan" in April 2025 and actively promoted

the implementation of relevant work based on the plan. The "Half Year

Assessment Report of Shandong Linglong Tire Co. Ltd. on the 2025

Annual Corporate Value and Return Enhancement Action Plan " is now

prepared to report on the company's implementation in the first half of 2025.I. Improve business quality

In the first half of 2025 the external environment will become more

complex and severe geopolitical tensions will intensify global economic

growth momentum will weaken and uncertainties such as changes in trade

1and monetary policies will increase. In the complex and ever-changing

international situation the company adheres to focusing on its main

business actively promotes global layout according to established

strategies accelerates product innovation and upgrading actively builds

the core competitiveness of the enterprise and continuously improves

product profitability through continuous adjustment and optimization of

sales structure achieving good results. From January to June 2025 the

company achieved a cumulative sales volume of 44.3863 million units a

year-on-year increase of 11.23%; Operating revenue was RMB 11.812

billion a year-on-year increase of 13.8%; The net profit attributable to the

parent company was RMB 854 million a year-on-year decrease of 7.66%.In addition the company was ranked on the 7th China Excellent

Management Company (BMC) list with outstanding comprehensive

management capabilities and was awarded the title of "China Excellent

Management Company". This award marks Linglong's comprehensive

strength in strategic layout operational management innovation capability

and sustainable development which has gained international authoritative

recognition. The company will continue to deepen its global strategy and

digital transformation practice ESG concepts drive high-quality

development with new quality productivity and move towards the goal of

becoming a world-class tire enterprise.II. Accelerate the development of new quality productive forces

2i. Upgrade the cooperation mode and continuously improve the

product matrix

The company has always used joint technology research as its driving

force working with major automakers to build a closed-loop innovationsystem of “demand definition technology development and scenarioverification.” Through deep collaboration with automotive companies in

production and quality improvement the company keenly captures market

demand and customer feedback providing partners with innovative

leading high-performance and responsive products and solutions. With

successful cooperation experience in vehicle matching development NVH

performance optimization and other fields the company will once again

establish a "High Performance Tire Joint Innovation Laboratory" with

Geely Automobile Research Institute in 2025 locking in cutting-edge

tracks such as low-temperature low rolling resistance and intelligent tires

achieving a leap from "product supply" to "technology symbiosis".As the culmination of Linglong Technology's strength the new

Linglong Master series has won high market recognition since its launch

in 2024 with its three flagship products: Zhikong Zhijing and Zhixiang.In the first half of 2025 the company will launch two new products the

New Linglong Master Zhitu Off road R/T Tire and Zhikong Explosion

proof Ultra High Performance Tire through continuous technological

innovation and product high-end practice. The product series has now built

3a complete high-end product matrix covering urban SUVs luxury sedans

hardcore off-road and explosion-proof tires and the path of brand

advancement is clear and solid. During the reporting period the sales

market of the Master series continued to grow rapidly with a significant

year-on-year increase in terminal sales across the entire series. Among

them the growth momentum of products over 18 inches was particularly

strong.ii. Global layout in Brazil intelligent manufacturing accelerates

overseas expansion

With the goal of "full field intelligence full process automation and

full range green" the company applies automated production equipment

embedded 5G+industrial Internet technology sensor technology and big

data analysis technology to deeply enable the whole process of tire

intelligent factory. It demonstrates significant advantages in enhancing

production efficiency optimizing resource allocation and reducing

operational costs.In order to further strengthen the company's international

competitiveness and accelerate the implementation of the "7+5" strategic

layout after extensive research and careful comparison the company has

decided to launch overseas (Brazil) investment and construction projects

in 2025. The Brazil base is the company's third overseas factory after

Thailand and Serbia marking the first successful layout of China's tire

4manufacturing base in the South American market. The construction of the

Brazilian base will continue to follow the industry-leading standards of

smart factories which is of great significance for promoting the company's

transformation and upgrading towards digital and intelligent production

and international services.iii. Build a global original equipment linkage mechanism and

intensively implement new mass production projects

In the first half of 2025 Linglong Tires continued to expand its

"network of partners" in the original equipment segment. The company not

only maintained in-depth cooperation with numerous international first-tier

brands such as Volkswagen Audi BMW General Motors Ford Honda

Nissan and Renault but also forged solid strategic partnerships with major

domestic automakers including Hongqi SAIC-GM-Wuling BYD Geely

Chery Great Wall GAC and SAIC Passenger Vehicles. These

collaborations not only reflect Linglong Tires' outstanding performance in

product quality technological innovation and service responsiveness but

also demonstrate the company's important position in the global

automotive industry chain.In terms of new original equipment mass-production projects

Linglong Tires achieved remarkable results. During the reporting period

the company successfully secured original equipment tire supply contracts

for a number of new vehicle models such as Geely Xingyuan Nissan N7

5Wuling Xiangjing Leapmotor B10 Volkswagen Tera (Brazil) and Foton

Daimler Galaxy. This has enabled the company to rapidly penetrate

markets ranging from economy models to mid-to-high-end models and

from traditional automakers to new energy vehicle (NEV) startups further

expanding Linglong Tires' market reach and brand influence.iv. Global intelligent ecological engine driving channel evolution and

upgrading

In the first half of 2025 Linglong Tire will deeply bind with the JD

platform and carry out business linkage through online and offline channels.The cooperation scope covers multiple dimensions such as product supply

and sales brand joint promotion data sharing and analysis and customer

service optimization which will effectively promote the deepening of

strategic cooperation. Both parties provide professional tire testing and

replacement services to consumers ensuring that they receive higher

quality safer and more reliable Linglong tire products while enjoying

preferential policies. At the same time as one of the first brands to

participate in the government's trade in subsidies Linglong Tire has

utilized JD platform's big data analysis to accurately understand consumer

needs targeted push of trade-in program information effectively promoted

the implementation of tire renewal policies and significantly enhanced

consumer participation enthusiasm and satisfaction. As of the end of June

2025 the consumer satisfaction rate of Linglong Tire has remained stable

6at over 98%.

The Atlas car maintenance post station which serves the passenger

tires is committed to becoming the first brand of car maintenance services

for car owners by providing profit entry for partners with Atlas tires that

gather strong brand influence and original equipment scale. Continuously

launching professional projects such as new energy tire repair "Chassis

Doctor" – tire + chassis characteristic business refined operation of core

business and operator business capability training and actively exploring

opportunities for new energy vehicle maintenance. By extensively

gathering high-quality resources in the industry vigorously promoting full

platform and community-based brand marketing and precise drainage and

opening up new profit growth channels for stores with distinctive station

sign services ultimately achieving a win-win situation for brands stores

operators and users. By the first half of 2025 Atlas Car Care Posthouse

has covered 10 provinces and 64 cities successfully developed 41

operators exceeded 475 image stores and more than 1000 stores which is

widely favored by the industry.The Atlas Carfriends Home model which serves commercial vehicle

tires directly hits the pain point of commercial vehicle tire aftermarket

service. Relying on the self-developed new retail 3.0 digital intelligent

SAAS system it has achieved full coverage of PC background APP and

small programs at the supplier end Carfriends Home headquarters end

7operator end storage and distribution end store end logistics fleet end and

driver owner end. As of the end of June 25 a total of 150 prefecture level

cities in 25 provinces have been developed with full coverage achieved in

prefecture level cities in Shandong Henan Hebei and Jiangsu provinces;

Completed the establishment of approximately 1203 authorized stores and

108 image stores for Kayou Home with the Kayou Home app achieving

over 340000 registered and certified card users. The core business model

of Kayou Home is to directly link with drivers and establish strong

connections. Through the image stores and authorized stores of Atlas

Kayou Home across the country it provides consistent integrated services

such as tires wheel insurance and non wheel projects for 30 million Kayou

online and offline. It strives to create a integrated automotive aftermarket

service platform with "product+service+value" as the core and achieves

the deep integration and interactive development of online and offline

integration through the global marketing of Skynet Terrestrial Network

and People's Network enabling the long-term planning of Linglong new

retail and the upgrading and development of commercial vehicle

maintenance services.v. Trinity helping global brands advance

In 2025 Linglong Tire aims to break through its global brand value as

its core goal and successfully drive a significant increase in brand

awareness and premium ability through the three line resonance of

8"upgrading six major brand strategies + sports marketing penetration+ self

media content improvement". During the reporting period we accurately

targeted the characteristics of the target audience established missions and

clear positioning for the six major international brands focused on

differentiated dimensions such as sustainability youthfulness and

personalization and ensured that the brand's core values were distinct and

competitive; Sports marketing deeply penetrates the global market plans

and implements global fan activities linked with top clubs such as Chelsea

and Real Madrid in the English Premier League and effectively enhances

the brand's global voice and emotional connection through a combination

of online interaction and immersive offline viewing experience; Innovation

and upgrading of self media content focusing on the core positioning of

the brand optimizing content themes forms and other aspects

strengthening the overall communication effect and user value resonance.The three major strategies work together to support the breakthrough

growth of annual brand value and the strengthening of global

competitiveness. Within the year the brand value of Linglong reached

RMB 110.216 billion ranking on the "China's 500 Most Valuable Brands"

list for the 22nd time and maintaining a strong annual growth of over RMB

5 billion for more than a decade demonstrating excellent brand image and

market competitiveness; In the "2025 World's Most Valuable Tire Brands"

list released by the authoritative British institution BrandFinance Linglong

9once again made it onto the list and became the only Chinese tire brand to

have won the list for six consecutive years consolidating its global

influence.vi. Continuously forging high-quality skilled elites and striving to

become a world-class tire enterprise

In the first half of 2025 the company adheres to the management policy

of "leading the team laying the foundation focusing on management

improving level and creating first-class" and strives to build an

international talent pool that can learn inspect manage and iterate on its

own. To this end the company continues to optimize the dual track training

mechanism of online and offline introduces the cloud learning platform

and carefully builds a job learning map to accelerate employee growth in

all aspects. At the same time the company has integrated resources from

multiple professional training institutions and conducted a series of

specialized training programs to enhance capabilities such as full process

supply chain management and digital transformation practical training

R&D team structural thinking project R&D team leadership improvement

project AI empowerment efficiency improvement project etc. effectively

promoting the learning and growth of team members. The company

focuses on the future and aims to build an international headquarters. It has

established an international talent selection and appointment mechanism

actively recruiting selecting reserving and cultivating international

0talents and offering English proficiency improvement training courses

according to professional categories to comprehensively enhance the

English listening speaking reading and writing abilities of team members.In addition the company has also held activities such as the "Frontline and

Security Worker Skills Enhancement Competition" and the "Employee

Training Competition and Excellent Master Apprentice Selection" which

have effectively promoted the improvement of employee skills and

significantly enhanced the sense of honor of outstanding employees.III. Improve corporate governance

i. Improve the internal governance system of the company

According to the relevant provisions of the Company Law of the

People's Republic of China (Revised in 2023) which will come into effect

on July 1 2024 and the Guidelines for the Articles of Association of Listed

Companies (2025) which will come into effect on March 28 2025 and

taking into account the actual situation of the company the company

cancels the board of supervisors and the powers of the board of supervisors

are exercised by the audit committee of the board of directors. The relevant

systems of the board of supervisors such as the Rules of Procedure of

Shandong Linglong Tire Co. Ltd. are correspondingly abolished. At the

same time the company has revised the current Articles of Association and

related internal governance systems of Shandong Linglong Tire Co. Ltd.renaming the "Rules of Procedure for the Shareholders' Meeting of

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1Shandong Linglong Tire Co. Ltd." to "Rules of Procedure for the

Shareholders' Meeting of Shandong Linglong Tire Co. Ltd." laying a solid

institutional foundation for the company's continuous standardization and

efficient governance.ii. Enhance the diversity level of the board of directors

From January to June 2025 the company will strictly comply with the

requirements of the new Company Law and related original equipment

institutional rules and continuously improve and perfect the corporate

governance structure and internal control system based on the actual

situation of the company. One employee representative director and one

independent director will be added and the number of directors will

increase from 9 to 11. The company held the second extraordinary

shareholders' meeting of 2025 on July 4 2025 and approved the proposal

for the replacement of the board of directors. The board of directors of the

company was iterated from the fifth to the sixth and the first meeting of

the sixth board of directors was held on the same day to complete the

appointment of senior management personnel.iii. Practice the concept of sustainable development

In the first half of 2025 Linglong Tire will focus on the four

development cores of "Green Linglong" "Smart Linglong" "Harmonious

Linglong" and "Robust Linglong" always adhering to the development

concept of co creation and sharing with all stakeholders such as employees

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2shareholders partners suppliers etc. and committed to building an

international tire benchmark enterprise with leading technology

environmentally friendly efficient production and excellent quality. The

company deeply integrates the concept of sustainable development into the

entire management process and builds five key work areas: "low-carbon

innovation innovative research and development value chain peers

people-oriented development and compliance foundation"; Establish a

supplier carbon management system deeply integrate low-carbon concepts

into the upstream and downstream of the supply chain promote green

upgrading of the industrial chain and jointly build a community of

responsibility; Build a carbon footprint accounting system that covers the

entire lifecycle of products from source to end using digital precision

measurement and institutionalized standardized management making

every green commitment traceable measurable and sustainable. The

company accurately identifies and determines key sustainable

development issues and accountability projects. Currently various issues

and projects have been steadily implemented within the company and

progress and achievements will be regularly disclosed to the public

accepting supervision from all parties in a highly transparent manner.During the reporting period the company continued to demonstrate its

sense of responsibility and successfully joined the United Nations Global

Compact (UNGC) solemnly committing to fully supporting the ten

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3principles of the Global Compact in the four major areas of human rights

labor environment and anti-corruption; Continuously awarded the title of

"Outstanding Responsible Enterprise of 2024" demonstrating the

industry's high recognition of the company's sustainable development

practices; Received the "AA" ESG rating from Huazheng Securities which

ranks first in the domestic industry; In the comprehensive analysis of

environmental and social governance the company has received an "A"

rating from China Chengxin Green Gold further highlighting its leading

position in the ESG field.IV. Strengthen the responsibility of the 'key few'

The company continues to strengthen the training of directors

supervisors and senior personnel actively organizing and participating in

various business training organized by regulatory agencies or associations

such as stock exchanges jurisdictional securities regulatory bureaus and

listed company associations. Compliance reminders are provided during

the company's regular reports major events or other specific event

window periods to enhance relevant personnel's understanding of

information disclosure major event reporting and insider information

management responsibilities and to improve the compliance awareness

and performance ability of the "key minority" group. From January to June

2025 there were no violations of national laws regulations regulatory

rules or internal management systems or rules of the company.

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4On January 23 2025 the company disclosed the "Announcement of

Shandong Linglong Tire Co. Ltd. on the Completion of the Controlling

Shareholder's Share Increase Plan" (Announcement No.: 2025-007). From

August 9 2024 to January 22 2025 the controlling shareholder Linglong

Group has cumulatively increased its holdings of 7981100 shares of the

company through the Shanghai Stock Exchange's centralized bidding

trading system accounting for 0.55% of the company's total share capital

with a cumulative increase amount of RMB 150.0024 million. The

increase plan has been implemented.Based on confidence and recognition of the company's future

development and value as well as to maintain stock price stability and

shareholder interests the company disclosed on May 7 2025 the

"Announcement of Shandong Linglong Tire Co. Ltd. on the Controlling

Shareholder's Plan to Increase Holdings in the Company" (Announcement

No. 2025-033)

The controlling shareholder Linglong Group Co. Ltd. plans to increase

its holdings of the company's shares through the Shanghai Stock Exchange

trading system with its own funds and self raised funds (including special

re loans for stock increase) within 6 months from May 7 2025 (inclusive)

with a cumulative increase amount not less than RMB 200 million and not

exceeding RMB 300 million. From May 7th to August 28th 2025

Linglong Group Co. Ltd. increased its holdings of 11334295 A-shares of

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5the company through centralized bidding on the Shanghai Stock Exchange

with its own funds and self raised funds (including special re loans for stock

increase) accounting for approximately 0.77% of the company's total share

capital with a cumulative increase amount of approximately RMB 170

million. The current increase plan has not been fully implemented.V. Enhance investor returns

In order to continuously implement the "long-term stable and

sustainable" shareholder value return mechanism and enhance the sense of

gain for investors the company will conduct quarterly cash dividends in

2025. The board of directors will formulate the company's profit

distribution plan for each quarter of 2025 based on the company's

profitability and funding needs provided that the total annual cash

dividends account for no less than 30% and no more than 40% of the net

profit attributable to shareholders of the listed company in 2025 and

implement it within the prescribed period.The company will complete the profit distribution for the fourth quarter

of 2024 and the first quarter of 2025 on July 11 2025. In the fourth quarter

of 2024 a cash dividend of RMB 0.014 (including tax) was distributed per

share with a total cash dividend of RMB 20.489 million accounting for

50.52% of the net profit attributable to shareholders of the listed company

in the consolidated financial statements for the fourth quarter of 2024. In

the first quarter of 2025 a cash dividend of RMB 0.07 per share (including

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6tax) was distributed with a total cash dividend of RMB 102.4452 million

accounting for 30.08% of the net profit attributable to shareholders of the

listed company in the consolidated financial statements for the first quarter

of 2025.The company will complete the profit distribution for the second

quarter of 2025 before October 28 2025. It plans to distribute a cash

dividend of RMB 0.11 (including tax) per share to all shareholders based

on the total share capital on the equity registration date of the second

quarter profit distribution in 2025. If the total share capital of the company

as of August 28 2025 is 1463502683 shares the total amount of cash

dividends distributed is RMB 160985300 accounting for 31.33% of the

net profit attributable to shareholders of the listed company in the

consolidated financial statements for the second quarter of 2025. The total

cash dividends of the company in the first half of 2025 (including cash

dividends distributed in the first quarter) amounted to RMB 263430500

accounting for 30.83% of the net profit attributable to shareholders of the

listed company in the consolidated financial statements for the first half of

2025. In addition the company does not engage in any other form of

distribution.VI. Strengthen investor communication

i. Strictly regulate information disclosure and promote quality

improvement

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7The company continues to standardize its information disclosure work

in accordance with the information disclosure system actively and

standardly fulfilling its information disclosure obligations ensuring timely

accurate and complete information disclosure. From January to June 2025

a total of 2 regular reports 41 temporary announcements and 81 other

online documents were disclosed facilitating investors to timely grasp the

company's production and operation and internal governance situation

ensuring that all shareholders have fair and equal access to information

and safeguarding the interests of all shareholders especially small and

medium-sized shareholders.ii. Enhance the effectiveness of investment management and

strengthen shareholder communication

The company always attaches great importance to the management of

small and medium-sized investors treats all shareholders equally actively

builds multi-dimensional communication channels for investors and

ensures good communication efficiency and effectiveness. From January

to June 2025 the company held a performance briefing for the year 2024

and the first quarter of 2025 and actively participated in the online

collective reception day for investors of listed companies in Shandong

Province in 2025 answering 269 questions from E-interactive investors.At the same time an "Investor Relations Map" has been established to

regularly track and analyze the characteristics and changes of shareholding

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8institutions summarize and record communication situations and market

voices timely convey suggestions or opinions raised by investors to

management and provide reference for the company to formulate and

adjust investment strategies at various stages.In the future the company will continue to track and evaluate the

implementation of the Corporate Value and Return Enhancement Action

Plan at all stages strictly fulfill its information disclosure obligations and

continue to focus on its main business strive to improve its management

level continuously enhance its core competitiveness profitability and risk

management capabilities. Through standardized corporate governance

good performance and stable investor returns the company will

effectively fulfill its responsibilities and obligations as a listed company

give back investor trust maintain the company's market image and jointly

promote the stable and healthy development of the capital market. The

forward-looking descriptions of future plans development strategies etc.involved in this action plan do not constitute a substantial commitment of

the company to investors.Announcement is hereby given.Board of Directors of Shandong Linglong Tire Co. Ltd

August 28 2025

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9This report has been prepared in Chinese and English respectively. In case

of discrepancy in the translation of this report the Chinese version shall

prevail.

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