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Hangxin Technology 2026 Interim Report: Settlement Policy Adjustment Leads to Loss, Cash Flow Improves
Hangxin Technology released its 2026 interim report on August 27. Affected by adjustments to settlement policies for special institutional clients and rising overseas operating costs, the company's performance declined significantly during the reporting period and fell into a loss. At the same time, the controlling shareholder and actual controller changed, and the convertible bonds were redeemed early and delisted. During the reporting period, the company achieved operating revenue of 869 million yuan, a year-on-year decrease of 7.31 percent. Net profit attributable to the parent company was negative 17 million yuan, turning from profit to loss year-on-year. Non-GAAP net profit was negative 18 million yuan, a year-on-year decline of 210.81 percent. Net cash flow from operating activities was negative 11 million yuan, with the net outflow narrowing sharply by 87.72 percent compared with the same period last year. In terms of business structure, aviation maintenance and services achieved revenue of 845 million yuan, a year-on-year increase of 6.71 percent, with a gross margin of 25.15 percent, down 2.56 percentage points from the same period last year. Revenue from equipment development and support was only 22 million yuan, a sharp year-on-year decline of 84.56 percent, and the gross margin fell to negative 166.13 percent. This was mainly because, affected by settlement policies for special institutional clients, the company wrote down revenue in this segment by approximately 93 million yuan, resulting in a gross profit reduction of approximately 89 million yuan. The company had previously received an unqualified audit opinion with a material uncertainty paragraph regarding going concern due to consecutive losses and restrictions under the United States MEU list. During the reporting period, through measures such as completing the redemption of convertible bonds, accelerating the collection of accounts receivable, and debt restructuring, the company eliminated some going concern doubts, but geopolitical risks remain a long-term concern.