Wisesoft Co Ltd

Wisesoft released its 2026 interim report, showing total operating revenue of 65.5312 million yuan, net profit attributable to the parent company of minus 29.5192 million yuan, and net cash inflow from operating activities of 24.9262 million yuan. The company's latest asset-liability ratio was 44.16 percent, up 0.82 percentage points from the previous quarter and up 22.74 percentage points from the same period last year. The latest gross margin was 13.87 percent, down 4.56 percentage points from the previous quarter. The latest return on equity was minus 3.53 percent, down 0.53 percentage points from the same period last year. Diluted earnings per share were minus 0.13 yuan, total asset turnover was 0.04 times, and inventory turnover was 0.28 times. The company had 22,800 shareholders, and the top ten shareholders held 65.3448 million shares, accounting for 28.96 percent of total share capital.

A total of 3.56 million yuan in the bank account of Wisesoft's controlled subsidiary Chengdu Zhisheng Guanghuan Technology was frozen and seized. The incident stems from a sales contract dispute between Zhisheng Guanghuan and Henan Wanjvda Technology Development, with a total contract value of 17.6 million yuan. Because Zhisheng Guanghuan's supplier Zhongke Kaijie Information System failed to deliver goods as agreed, Zhisheng Guanghuan could not deliver to Henan Wanjvda on time. Henan Wanjvda filed a lawsuit and applied for asset preservation. The Jinshui District People's Court of Zhengzhou ruled in the first instance to terminate the contract, requiring Zhisheng Guanghuan to return the advance payment of 5.28 million yuan plus interest and pay liquidated damages. The second-instance ruling upheld the original verdict. Wisesoft stated that the freezing and seizure will not have a material impact on the listed company's overall capital turnover or daily production and operations. As of March 31 this year, the company's net assets stood at 848 million yuan, with the seized funds accounting for only 0.42 percent. In terms of performance, Wisesoft has posted negative net profit attributable to the parent company for four consecutive years from 2022 to 2025, and its preliminary first-half 2026 forecast shows a net loss of 28 million to 32 million yuan, with no turnaround yet. In the secondary market, as of the close on August 4, Wisesoft rose 6.30 percent to 10.12 yuan per share, giving a total market value of about 2.283 billion yuan. The stock has fallen about 10 percent year to date.