Dare Technology Co Ltd

Dare Power Dekor Home's semi-annual report disclosed on August 27 shows that first-half operating revenue was 2.071 billion yuan, down 1.17 percent year on year. Net profit attributable to the parent company was negative 194 million yuan, down 643.59 percent year on year. Net profit attributable to the parent after deducting non-recurring items was negative 202 million yuan, down 788.23 percent year on year. Net cash flow from operating activities was negative 702 million yuan, down 2,153.57 percent year on year. The company's main businesses include flooring, wood-based panels, and aluminum strip, with the aluminum strip business officially starting production in the first half of 2026. In terms of revenue composition, medium and high density fiberboard revenue was 406 million yuan, accounting for 19.59 percent of total revenue, down 13.92 percent year on year. Wood flooring revenue was 921 million yuan, accounting for 44.46 percent of total revenue, down 32.05 percent year on year. Bamboo and stone plastic flooring revenue was 243 million yuan, accounting for 11.74 percent of total revenue, up 10.37 percent year on year. Wooden door and wardrobe business revenue was 45.7607 million yuan, accounting for 2.21 percent of total revenue, up 108.67 percent year on year. Aluminum strip business revenue was 439 million yuan, accounting for 21.19 percent of total revenue. During the reporting period, the company's gross margin was 12.98 percent, down 13.88 percentage points year on year. Period expenses were 480 million yuan, down 73.652 million yuan year on year, and the period expense ratio was 23.17 percent, down 3.24 percentage points year on year. As of June 30, 2026, the company's accounts receivable were 1.503 billion yuan, up 12 percent from the beginning of the year. Inventory was 1.955 billion yuan, up 18.77 percent from the beginning of the year. In the secondary market, the stock closed at 5.51 yuan per share on August 28, up 1.66 percent, and has fallen 24.21 percent cumulatively this year.

Dare Power Dekor Home has issued its 2026 half-year performance forecast, projecting a net loss attributable to shareholders of the listed company of 160 million to 200 million yuan for the first half, compared with a profit of 35.6576 million yuan in the same period last year. The company explained that, affected by a sluggish market, domestic demand continued to decline, production and sales volumes of flooring and wood-based panel businesses kept falling, operating revenue continued to drop, and gross profit decreased, resulting in a negative net profit. This performance change is consistent with the attributions in the 2025 annual report and the 2026 first-quarter report, reflecting a structural and persistent deterioration in the company's operating difficulties. Previously, the company's net profit had declined for seven consecutive years. In 2025, full-year operating revenue was 4.575 billion yuan, down 14.49 percent year-on-year, and net profit was only 13.337 million yuan, down 90.41 percent year-on-year, with core subsidiary Shengxiang Group posting a net loss of 133 million yuan. In the first quarter of 2026, total operating revenue was 768 million yuan, down 2.58 percent year-on-year, net loss was 96.7369 million yuan, with the loss widening by 39.18 percent year-on-year, and gross margin fell to 16.66 percent from 22.04 percent in the same period last year.

Dare Power Dekor Home disclosed its earnings forecast, expecting a net loss attributable to shareholders of 160 million to 200 million yuan in the first half of 2026, compared with a profit of 35.6576 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 170 million to 210 million yuan, versus a profit of 29.3458 million yuan a year earlier. Basic loss per share is projected at 0.29 yuan to 0.37 yuan. The company said the performance change was mainly due to a sluggish market, with domestic demand continuing to weaken. Production and sales volumes of flooring and wood-based panel businesses kept declining, operating revenue continued to fall, and gross profit decreased, resulting in a negative net profit.