China Bester Group Telecom Co Ltd

China Bester Group Telecom released its 2026 interim report on August 26. The company is driven by dual engines of 5G new infrastructure and intelligent computing, but affected by slowing telecom operator investment and supply chain volatility, results show optimized revenue structure alongside heavy profit pressure. During the reporting period, operating revenue reached 1.358 billion yuan, down 14.32 percent year on year; net profit attributable to the parent was 10.6541 million yuan, down 78.96 percent; non-GAAP net profit was 3.8708 million yuan, down 92.06 percent. Net cash flow from operating activities was negative 358 million yuan, with the net outflow widening. Total assets reached 11.793 billion yuan, up 37.99 percent from the end of last year, mainly due to completing a private placement of nearly 2 billion yuan and receiving advance payments from computing power customers. In terms of business structure, 5G new infrastructure revenue was 647 million yuan, down 12.73 percent year on year; smart city and other business revenue was 291 million yuan, down 45.28 percent; intelligent computing business revenue was 407 million yuan, up 36.87 percent, but delayed delivery of server equipment caused deliveries to fall short of expectations, limiting profit contribution. Financial expenses increased 11.24 percent year on year to 83.99 million yuan, further eroding profit. The company faces risks including reduced telecom operator capital expenditure, equipment delivery uncertainty, and high accounts receivable. At the end of the period, accounts receivable balance was 2.565 billion yuan, accounting for more than one-fifth of total assets.

China Bester Group Telecom announced that 102 million shares from a private placement held by 17 shareholders will become tradable on August 4, 2026, accounting for 19.03% of the company's total share capital. In the first quarter of 2026, the company reported revenue of 485 million yuan and a net loss attributable to the parent company of 2,846.79 yuan.

China Bester Group Telecom issued a performance forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 10 million yuan and 11.15 million yuan, a year-on-year decrease of 77.98% to 80.25%. Net profit attributable to the parent after deducting non-recurring items is expected to be between 3.8 million yuan and 4.5 million yuan, a year-on-year decrease of 90.77% to 92.21%. The company stated that the main reason for the expected decline in performance is the continued slowdown in investment by telecom operators, leading to a drop in revenue from 5G new infrastructure business, smart city projects, and other operations. The previously disclosed first-quarter report showed that the company achieved revenue of 485 million yuan in the first quarter of 2026, with net profit attributable to the parent at negative 2,846.79 yuan.