Shenzhen Sinovatio Technology Co Ltd Class A

Sinovatio disclosed its 2026 semi-annual report on August 26. In the first half of the year, it achieved total operating revenue of 235 million yuan, up 3.96 percent year on year, but net profit attributable to the parent company showed a loss of 129 million yuan, compared with a loss of 67.15 million yuan in the same period last year, widening the deficit. Net profit after deducting non-recurring items was a loss of 132 million yuan, compared with a loss of 70.81 million yuan a year earlier. Net cash flow from operating activities was negative 142 million yuan, versus 88.98 million yuan in the prior-year period. Basic earnings per share were negative 0.76 yuan, and the weighted average return on equity was negative 7.87 percent. The company's main business covers research, development, production, sales and technical services for products including network visualization infrastructure, network content security, data operations, and data and network security. As of the end of the first half of 2026, the company's inventory book value was 291 million yuan, accounting for 19.16 percent of net assets, with inventory write-down provisions of 51.84 million yuan, representing a provision ratio of 15.12 percent.

Sinosun Technology published its 2026 interim report on August 25, showing higher revenue but weaker profitability, while operating cash flow swung from positive to negative. The company achieved operating revenue of 235 million yuan, up 3.96 percent year on year, but net profit attributable to shareholders was a loss of 129 million yuan, with the loss widening 92.38 percent from a year earlier. Net profit after deducting non-recurring items was a loss of 132 million yuan, with the loss widening 86.92 percent. Net cash flow from operating activities was negative 142 million yuan, a sharp decline from positive 89 million yuan in the same period last year. The main reason for the change in performance was a higher proportion of low-margin externally purchased products, with operating costs rising 49.12 percent, far outpacing revenue growth. At the same time, the appreciation of the renminbi led to exchange losses, and finance costs turned from negative to positive at 116 million yuan. By product, revenue from broadband network products grew 19.78 percent, while revenue from mobile network products and network content security products fell 51.24 percent and 32.42 percent respectively. Revenue from externally purchased third-party equipment surged 126.38 percent, accounting for nearly 30 percent of total revenue. The company is advancing its transformation toward AI security governance and data operations, but faces risks from market competition and exchange rate fluctuations.

Sinovatio released its 2026 interim report. Total operating revenue was 235 million yuan, up 3.96% year-on-year, marking a second consecutive year of growth. However, net profit attributable to the parent company was a loss of 129 million yuan, a decrease of 62.03 million yuan compared with the same period last year, with the loss widening year-on-year. Net cash flow from operating activities was negative 142 million yuan, down 259.69% year-on-year. The company's asset-liability ratio was 22.94%, gross margin was 56.99%, return on equity was negative 8.51%, and diluted earnings per share was negative 0.76 yuan. The number of shareholders was 20,400, and the top ten shareholders held 43.92% of the total share capital.

Sinovatio released its 2026 interim report, showing that net loss attributable to the parent company widened to 129 million yuan in the first half, compared with a loss of 67.15 million yuan in the same period last year. Operating revenue was 235 million yuan, up 4.0 percent year on year. Net loss attributable to the parent after deducting non-recurring items was 132 million yuan, and net operating cash flow was negative 142 million yuan. Second-quarter operating revenue was 133 million yuan, down 6.5 percent year on year, with a net loss attributable to the parent of 47.14 million yuan. The company said industry demand continues to grow, but some large projects involved purchasing third-party software and hardware, resulting in lower gross margins than self-developed products.

Zhongxin Saike disclosed its earnings forecast, expecting a net loss attributable to the parent company of 120 million to 140 million yuan in the first half of 2026, compared with a loss of 67.1458 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 124 million to 144 million yuan, compared with a loss of 70.8071 million yuan in the same period last year. Basic earnings per share are expected to be between negative 0.7 yuan and negative 0.82 yuan. The company stated that the widening loss was mainly due to a decline in gross margin caused by the integration of a large amount of third-party hardware and software products in some projects, an exchange loss of approximately 20 million yuan resulting from the appreciation of the renminbi against the US dollar, an increase in research and development expenses, and the recognition of approximately 4 million yuan in government subsidy income.