Gansu Dayu Water saving Group

Dayu Water-Saving Group released its 2026 interim report on August 25. Relying on a design-led, full-industry-chain collaborative model, the company achieved breakthroughs in smart water conservancy and ecological governance, with steady revenue expansion and significantly improved asset quality. However, affected by one-off factors such as goodwill losses from the sale of equity in a subsidiary, net profit attributable to the parent turned negative, while non-recurring profit and loss excluded net profit maintained slight growth, and operating cash flow remained in net outflow. During the reporting period, the company achieved operating revenue of 1.586 billion yuan, up 24.27 percent year on year. Net profit attributable to the parent was negative 1.1079 million yuan, down 108.80 percent year on year. Non-recurring profit and loss excluded net profit was 4.4138 million yuan, up 1.55 percent year on year. Net cash flow from operating activities was negative 569 million yuan, with the net outflow widening 3.59 percent year on year. Among these, revenue from agricultural water design services was 360 million yuan, a sharp year-on-year increase of 306.84 percent, with a gross margin of 36.81 percent, mainly benefiting from the completed integration of Huai'an Water Conservancy Survey and Design Research Institute and the highlighted advantages of its double Class A design institute qualifications. Revenue from smart agricultural water project construction was 937 million yuan, up 13.28 percent year on year, with a gross margin of 17.53 percent. Revenue from agricultural water technology product sales was 139 million yuan, down 36.67 percent year on year. New contracts signed in the first half totaled 2.166 billion yuan. On the profit side, the company transferred part of its equity in the holding subsidiary Huitong Technology, recognizing investment income of negative 19.2347 million yuan. Combined with factors such as gains and losses on disposal of non-current assets, this caused net profit attributable to the parent to swing from profit to loss. Looking ahead, with the start of the 15th Five-Year Plan, national water network construction, modernization of irrigation districts, and the building of digital twin water conservancy systems will bring a certain incremental market. However, attention should be paid to risks from intensifying industry homogenization, accounts receivable management caused by longer project payment collection cycles, and the impact of raw material price fluctuations on gross margins.