Hwa Create Corp Ltd

Hwa Create disclosed its 2026 semi-annual report on August 26. In the first half of the year, it achieved total operating revenue of 239 million yuan, down 28.13 percent year on year. Net profit attributable to the parent company was a loss of 36.02 million yuan, compared with a profit of 2.97 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 34.45 million yuan, compared with a profit of 3 million yuan a year earlier. Net cash flow from operating activities was 22.17 million yuan, down 13.45 percent year on year. Basic earnings per share were negative 0.0544 yuan, and the weighted average return on equity was negative 2.38 percent. The company's main businesses include satellite applications, simulation and testing, signal processing, and unmanned systems.

Hwa Create announced that it will be banned from participating in procurement activities in the special sector for 30 months starting July 2026, which is expected to have a certain negative impact on its production, operations, and financial condition. The company stated that all production and operational activities are currently proceeding normally, the performance of signed contracts on hand will not be affected, and it will increase resource investment to expand markets such as satellite applications, simulation testing, signal processing, and unmanned systems. The company's first-quarter 2026 report showed revenue of 147 million yuan and a net loss attributable to the parent company of 11.96 million yuan; the 2025 annual report showed revenue of 782 million yuan and a net loss attributable to the parent company of 69.22 million yuan, with losses narrowing in both periods.