Raisecom Technology Co Ltd

Raisecom announced on the evening of September 1 that company directors Li Yuejie and Zhu Chuncheng were each sentenced by the Beijing Third Intermediate People's Court to one year and six months in prison for the crime of illegally disclosing important information, along with a fine of 1 million yuan. This matter is the same as the administrative penalty imposed on the company by the China Securities Regulatory Commission in September 2023. Li Yuejie is one of the company's actual controllers and had previously stepped down as chairman, while Zhu Chuncheng is one of the company's founders and currently serves as a director. The company stated that the ruling does not affect the exercise of shareholder rights, nor will it have a material adverse impact on production and operations, which are currently normal.

Raisecom has released its 2026 interim report. Total operating revenue was 656 million yuan, net profit attributable to the parent company was a loss of 4.55 million yuan, and net cash flow from operating activities was a negative 60.71 million yuan. The company's latest asset-liability ratio was 32.75 percent, up 1.45 percentage points from the previous quarter. Gross margin was 42.42 percent, down 0.69 percentage points from the previous quarter and down 1.41 percentage points from the same period last year. The latest return on equity was negative 0.30 percent, and diluted earnings per share was negative 0.01 yuan. The company had 43,800 shareholders, and the top ten shareholders held 46.90 percent of total share capital.

Raisecom has replied to the Shanghai Stock Exchange's inquiry regarding its 2025 annual report, explaining that the main reasons for its revenue declining for three consecutive years to 1.232 billion yuan, a year-on-year drop of 10.9 percent, were capital expenditure cuts by the three major telecom operators and the contraction of traditional broadband services, compounded by earlier industry overstocking that led to inventory digestion and order deferral pressures. The company's top five customers remain the three major operators, with combined sales accounting for 65 percent, and subsequent payments for related receivables are normal. Fourth-quarter revenue accounted for 31.33 percent due to the concentrated implementation of year-end centralized procurement orders and the industry practice of centralized acceptance, with complete revenue recognition documentation. Software revenue grew 21.3 percent year-on-year while costs fell 66.9 percent, mainly benefiting from higher sales volumes of high-value-added non-terminal products and cost reductions through hardware integration technology, with a logical coordinated sales approach for bundled software and hardware. Overseas business achieved revenue of 208 million yuan, a slight year-on-year increase of 3.35 percent, with an overall gross margin of 49.62 percent and long-term stable cooperative distributors. The company distinguishes revenue recognition standards across multiple categories, strictly recognizing revenue at milestones such as receipt, acceptance, and customs declaration, with accounting policies applied consistently across periods.