Suzhou K-Hiragawa Electronic Technology Co. Ltd. A

Kechuan Technology released its 2026 interim report, with net profit attributable to the parent company at negative 28.28 million yuan, a decrease of 53.49 million yuan from the same period last year, down 212.18 percent year on year. The company's total operating revenue was 449 million yuan, and net cash flow from operating activities was negative 25.03 million yuan, a decrease of 112 million yuan from the same period last year. The latest asset-liability ratio was 39.96 percent, gross margin was 7.37 percent, return on equity was negative 2.70 percent, and diluted earnings per share was negative 0.15 yuan.

Kechuan Technology released its 2026 interim report. Revenue was 449 million yuan, up 7.0 percent year on year, but net profit attributable to the parent company was a loss of 28.28 million yuan, down 212.2 percent year on year. Net profit attributable to the parent after deducting non-recurring items was a loss of 29.63 million yuan, down 234.9 percent year on year, and net operating cash flow was negative 25.03 million yuan, down 128.9 percent year on year. Second-quarter revenue was 227 million yuan, up 4.1 percent year on year, while net profit attributable to the parent was a loss of 16.69 million yuan, down 215.6 percent year on year. The company said the profit decline was mainly due to lower gross margins in its main business and higher depreciation expenses after new production capacity came on stream, while research and development spending on new businesses has not yet generated revenue returns.

Kechuan Technology announced that shareholder Shi Huiqing reduced a total of 3.76 million shares through block trades and centralized bidding, accounting for 2.00% of the company's total share capital. In the first quarter of 2026, the company achieved revenue of 223 million yuan, with a net loss attributable to the parent company of 11.59 million yuan.

Kechuan Technology disclosed its earnings forecast, expecting a net loss attributable to the parent company of 26 million to 31 million yuan in the first half of 2026, compared with a profit of 25.2106 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 28 million to 33 million yuan, versus a profit of 21.9561 million yuan a year earlier. The company stated that overall operating revenue continued to grow, but the decline in main business profitability, ongoing investment in new businesses, and increased fixed costs led to the expected loss. Based on the latest closing price, the company's price-to-book ratio is about 11.68 times, and its price-to-sales ratio is about 13.16 times.