Tsinghuatongfang Co Ltd

Tongfang Co., Ltd. disclosed its 2026 semi-annual report on August 29. In the first half of the year, it achieved total operating revenue of 4.741 billion yuan, down 16.35 percent year on year. Net profit attributable to the parent company was a loss of 103 million yuan, compared with a profit of 145 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 233 million yuan, compared with a profit of 151 million yuan a year earlier. Net cash flow from operating activities was negative 219 million yuan, an improvement from negative 453 million yuan in the same period last year. During the reporting period, basic earnings per share were negative 0.03 yuan, and the weighted average return on net assets was negative 0.65 percent. Total non-recurring gains and losses amounted to 129 million yuan, including 95.0064 million yuan in debt restructuring gains and losses and 27.8203 million yuan in gains and losses on disposal of non-current assets. The company's main businesses cover public security, digital intelligence industries, and smart energy.

Tongfang issued a performance forecast, expecting a net loss attributable to shareholders of the listed company of 100 million to 180 million yuan for the first half of 2026, compared with a restated profit of 145 million yuan in the same period last year, swinging from profit to loss year-on-year. After deducting non-recurring items, the loss is expected to be 230 million to 310 million yuan, versus a restated profit of 151 million yuan a year earlier. The company said the expected loss was mainly due to increased investment in core technology research and development and international market expansion. Although overseas markets achieved counter-cyclical growth, a large number of projects under construction have not yet met revenue recognition conditions. Meanwhile, the smart energy business was affected by the macroeconomic environment, with revenue declining, and financial assets held by some investee companies recorded losses due to fair value fluctuations. In the first quarter of 2026, Tongfang achieved revenue of 1.793 billion yuan, with a net loss attributable to the parent company of 183 million yuan.