Shenzhen Xinhao Photoelectricity Technology Co. Ltd

Xinhao Optoelectronics released its 2026 interim report, showing total operating revenue of 660 million yuan, down 25.25% year-on-year, and a net loss attributable to the parent company of 114 million yuan. Net cash flow from operating activities was negative 32.1964 million yuan, the asset-liability ratio was 50.99%, gross margin was 0.74%, ROE was negative 6.02%, and diluted earnings per share was negative 0.40 yuan. The company had 18,700 shareholders, with the top ten shareholders holding 48.39% of shares.

The Shenzhen Securities Regulatory Bureau has ordered Xinhao Optoelectronics to take corrective measures, while chairman and general manager Yao Hao and board secretary Zhou Xuan were issued warning letters. An investigation found that the company failed to fully disclose related-party transactions with Shenzhen Junda Optoelectronics in its annual reports from 2021 to 2023, made basic errors in its 2024 annual report disclosures, had irregular management of insider information, errors in some meeting minutes, non-standard revenue accounting, and inaccurate provisions for some inventory write-downs. The related-party transaction issue between Xinhao Optoelectronics and Junda Optoelectronics had previously drawn regulatory attention, with the Shenzhen Stock Exchange issuing a letter of concern in November 2021, yet the violations persisted through the 2023 annual report. Additionally, shareholder holding more than 5 percent and director Wang Yayuan was issued a warning letter in December 2021 due to short-swing trading by her mother. The company also corrected a clerical error in an investment progress announcement in September 2025, and made extensive corrections to its 2024 annual report in March 2026, including changing a statement that production and sales volumes had slightly decreased when they were mistakenly written as slightly increased. During trading on July 8, Xinhao Optoelectronics fell more than 5 percent at one point, hitting a low of 21.38 yuan per share, and closed at 21.72 yuan per share, down 3.55 percent, with a total market value of approximately 6.174 billion yuan. In 2025, the company reported revenue of 1.641 billion yuan and a net loss attributable to the parent of 301 million yuan. In the first quarter of 2026, revenue was 299 million yuan, down 29.03 percent year-on-year, with a net loss attributable to the parent of 54.6436 million yuan.