D&O Home Collection Co Ltd

Diou Shuihua disclosed its 2026 interim report. In the first half, it achieved operating revenue of 953 million yuan, with a net loss attributable to the parent company of 29.33 million yuan, a significant narrowing from the loss of 84.32 million yuan in the same period last year. Net cash flow from operating activities was 137 million yuan, up 39.57 percent year on year. Sales channel revenue was 791 million yuan, accounting for 82.99 percent of total revenue, while engineering channel revenue was 162 million yuan, accounting for 17.01 percent. The manufacturing segment's gross margin rose by 5.45 percentage points year on year, and expenses fell by 12.84 million yuan. The asset-liability ratio dropped from 71.69 percent at the end of the same period last year to 59.58 percent at the end of June. Cash and cash equivalents stood at 767 million yuan, an increase of 101 million yuan from the same period last year. The company's wholly owned subsidiary Shuihua Weilai is building a presence around computing infrastructure, computing scheduling and operations, and diversified AI applications. Through Ya'an Yunqing, it completed the first-phase data center construction and the networking deployment of servers with thousands of cards, while the second phase has entered the planning stage. It also made a strategic investment in Shuche Software and jointly established a joint venture to provide computing cloud services. At the same time, it launched the AIGC content platform Zhuimengfang and has built an AI technology team of more than 40 people.

Diou Shuihua disclosed its earnings forecast, expecting a net loss attributable to the parent of 23 million to 35 million yuan in the first half of 2026, compared with a loss of 84.3237 million yuan in the same period last year. The company expects operating revenue of 920 million to 980 million yuan for the period, a net loss excluding non-recurring items of 63 million to 78 million yuan, and a basic loss per share of 0.0443 to 0.0675 yuan. The improvement in performance is mainly due to higher gross margins, lower period expenses, reduced credit impairment losses, and increased gains on asset disposals. During the reporting period, net operating cash flow remained positive, and the scale of convertible bonds decreased from 844 million yuan at the beginning of the period to 465 million yuan at the end, improving the asset-liability structure.