Shenzhen Rayitek Hi-Tech Film Co. Ltd. A

Rayitek released its 2026 interim report, with net profit attributable to the parent company at negative 39.11 million yuan, a widening of 5.38 million yuan compared with the same period last year. Total operating revenue was 226 million yuan, up 24.01 percent year on year, marking three consecutive years of growth. Net cash inflow from operating activities was 10.95 million yuan, down 88.33 percent year on year. The company's latest asset-liability ratio was 54.04 percent, gross margin was 18.21 percent, and diluted earnings per share was negative 0.22 yuan.

Rayitech released its 2026 interim report, showing operating revenue of 226 million yuan, up 24.01 percent year on year, but net profit attributable to the parent company was a loss of 39 million yuan, with the loss widening by 5.38 million yuan year on year, presenting a situation of revenue growth without profit growth. Capacity release at the Jiaxing base drove higher sales volume, but operating costs grew 28.17 percent, faster than revenue growth, and combined with reduced government subsidies and increased interest expenses, profitability came under pressure. Net cash flow from operating activities was 11 million yuan, down sharply by 88.33 percent year on year, mainly due to reduced government subsidies and payment of maturing letters of credit. Closing net assets were 1.214 billion yuan, up 42.69 percent from the end of the previous year, mainly because convertible bond conversions increased share capital and capital reserves. The company focuses on thermal control, electronics, and electrical PI films. Higher sales of ultra-thick thermal control PI films improved profitability in that segment, and the TPI film process continued to be optimized, but the scale benefits of new production lines have not yet fully materialized, and new products are still in the customer evaluation period, so overall profitability has not improved in tandem.

The Shanghai Stock Exchange recently issued a regulatory inquiry letter regarding Rayitech's 2025 annual report, focusing on matters emphasized in the internal control audit report and directly pointing to the company's then-senior executive providing external technical consulting and receiving fees. Rayitech replied that its equipment supplier Wuhan Weifu Lide paid the company's general manager a total of 10.36 million yuan in technical service fees between January 2018 and June 2024, for the design and manufacture of a high-precision, high-temperature, high-speed biaxial stretching film production line. After verification, the service did not involve the company's core polyimide film processes. The company's equipment purchases from Weifu Lide went through market-based price comparison, with prices 27 percent lower than comparable Japanese equipment, no additional consulting fees, no outflow of company funds, and no misappropriation of funds. However, the arrangement was in substance a related-party transaction, and the company failed to perform timely review and disclosure procedures. The general manager turned over the full 10.36 million yuan in service fees to the company in March 2026. The company has simultaneously carried out rectification, strictly implementing related-party transaction decision-making systems, improving fund management and supplier internal control systems, and strengthening internal audit oversight.