Shanghai Yanhua Smartech Group

Yanhua Smart released its 2026 interim report, with net profit attributable to the parent company at negative 11.37 million yuan, swinging from profit to loss year-on-year. Total operating revenue was 160 million yuan, down 26.11 percent from the same period last year. Net cash flow from operating activities was negative 66.51 million yuan. The latest asset-liability ratio was 59.61 percent, gross margin was 20.47 percent, return on equity was negative 2.67 percent, and diluted earnings per share was negative 0.02 yuan.

Yanhua Smartech disclosed its earnings forecast, expecting a net loss attributable to the parent company of 7.5 million to 15 million yuan in the first half of 2026, compared with a profit of 5.384 million yuan in the same period last year. The company expects operating revenue of 150 million to 195 million yuan for the period, a net loss after deducting non-recurring items of 10 million to 18 million yuan, and basic earnings per share between negative 0.0105 yuan and negative 0.021 yuan. The decline in performance is mainly due to intensified industry competition leading to business expansion in some regions falling short of expectations, the winding-up and settlement of existing projects, new businesses not yet reaching scale, and a year-on-year decline in investment income. In the first half of 2025, investment income was recognized from the dilution of equity due to the capital increase of the former controlling subsidiary Yixing Technology, which did not recur this period, while some investee companies faced operational pressure, dragging on profits. The impact of non-recurring gains and losses on net profit is approximately 4 million yuan, mainly from the reversal of impairment provisions on receivables, investment income from financial assets, and government subsidies.